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E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 107 CONGRESS, SECOND SESSION

Vol. 148 WASHINGTON, MONDAY, JULY 8, 2002 No. 90 Senate The Senate met at 2 p.m. and was Mr. REID. Thank you very much, Mr. Mr. SARBANES. I thank the Chair. called to order by the President pro President. Mr. President, today the Senate tempore [Mr. BYRD]. f turns its attention to S. 2673, the Pub- lic Company Accounting Reform and PRAYER MEASURE PLACED ON THE Investor Protection Act of 2002, which The Chaplain, Dr. Lloyd John CALENDAR—H.R. 4231 was reported from the Senate Com- Ogilvie, offered the following prayer: Mr. REID. It is my understanding mittee on Banking, Housing, and Gracious, liberating God, who has H.R. 4231 is at the desk and due for its Urban Affairs on June 18 on a strong created us as free women and men to second reading. 17-to-4 vote. love You and serve You by working to The PRESIDENT pro tempore. The A unanimous consent agreement was assure the personal, spiritual, reli- Senator is correct. entered into with respect to this legis- gious, political, and economic freedom Mr. REID. I ask that H.R. 4231 be lation prior to the Fourth of July re- of all people, today we celebrate the read for a second time, and I would cess, which provided that at 2 p.m. anniversary of the first public reading then object to any further proceedings today, Monday, July 8, the Senate of the Declaration of Independence by on this matter. would proceed, for debate only, to the Colonel John Nixon, and the ringing of The PRESIDENT pro tempore. The consideration of this legislation. the Liberty Bell. We remember the clerk will read the title of the bill for I hope to take a fair amount of time words of Leviticus 25:10 inscribed on the second time. to set out the process through which The assistant legislative clerk read the bell: ‘‘Proclaim liberty throughout the committee worked and to discuss as follows: all the land unto the inhabitants there- the provisions of this legislation. of.’’ We seek to do that today. You A bill (H.R. 4231) to improve small business As I understand it, upon convening advocacy, and for other purposes. have revealed to us Your mandate that tomorrow and going back to this legis- all Your people should be free to wor- The PRESIDENT pro tempore. Objec- lation, amendments will be in order. ship You. Help us to maintain this tion having been heard, the bill will be There are a couple of technical amend- strong fabric of our Republic. You have placed on the calendar. ments that I am hopeful we can ap- placed a liberty bell in all our hearts f prove today by unanimous consent. I that rings this afternoon calling us on PUBLIC COMPANY ACCOUNTING will be discussing that with the distin- in the battle for justice, righteousness, REFORM AND INVESTOR PRO- guished ranking Republican member of and freedom for all Americans and, TECTION ACT OF 2002 the committee in the course of the through our world mission, for the The PRESIDENT pro tempore. Under afternoon. world. You are our Lord and Saviour. the previous order, the Senate will now Mr. President, I rise in very strong Amen. proceed to the consideration of S. 2673, support of this legislation. This legisla- f which the clerk will report. tion is intended to address systemic and structural weaknesses that I think PLEDGE OF ALLEGIANCE The assistant legislative clerk read as follows: have been revealed in recent months The PRESIDENT pro tempore led the and that show failures of audit effec- Pledge of Allegiance, as follows: A bill (S. 2673) to improve quality and transparency in financial reporting and inde- tiveness and a breakdown in corporate I pledge allegiance to the Flag of the pendent audits and accounting services for financial and broker-dealer responsi- United States of America, and to the Repub- public companies, to create a Public Com- bility. In fact, it is very clear that lic for which it stands, one nation under God, pany Accounting Oversight Board, to en- indivisible, with liberty and justice for all. much of this has been happening over hance the standard setting process for ac- the last few years. f counting practices, to strengthen the inde- Hopefully, we have experienced the RESERVATION OF LEADER TIME pendence of firms that audit public compa- brunt of it. Who can guarantee that, nies, to increase corporate responsibility and The PRESIDENT pro tempore. Under the usefulness of corporate financial disclo- however, when every day you come to the previous order, the leadership time sure, to protect the objectivity and inde- read in the morning paper yet another is reserved. pendence of securities analysts, to improve story, as witnessed this morning with f Securities and Exchange Commission re- respect to one of the most respected sources and oversight, and for other pur- pharmaceutical companies in the coun- RECOGNITION OF THE ACTING poses. try. MAJORITY LEADER The PRESIDENT pro tempore. The I believe this bill is urgently needed. The PRESIDENT pro tempore. The Senator from Maryland, Mr. SARBANES, I hope my colleagues will agree with Senator from Nevada is recognized. the manager of the bill, is recognized. that and will support its swift passage.

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

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VerDate 11-MAY-2000 02:40 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.000 pfrm12 PsN: S08PT1 S6328 CONGRESSIONAL RECORD — SENATE July 8, 2002 The House, earlier this year, passed accounting fraud that led to a $1.6 bil- The distinguished Columbia Law legislation on this subject, but I think lion restatement of earnings’’; Tyco School Professor John Coffee, noted, in it is fair to say that the legislation we International is under investigation summarizing the trend: are bringing to the floor of the Senate ‘‘on suspicion of hiding payments and During the 1990s, the quality of financial is more comprehensive, more thorough, loans to its top executives . . . and its reporting and analysis appears to have de- and, I believe, more effective. But, of ‘‘shares have plunged 75 percent this clined. While an earnings restatement is not course, once we complete our work year as investigators question whether necessarily proof of fraud, this increase here, we will have the challenge of strongly implies that auditors have deferred it inflated its earnings and cashflow’’; excessively to their clients. going to conference with our colleagues WorldCom, under investigation for Jack Ehnes, the chief executive of on the other side of the Capitol to work ‘‘hiding $4 billion in expenses by the California State Teachers Retire- out the differences between the two wrongly classifying short-term costs as ment System, which oversees $100 bil- versions of the legislation. long-term investments.’’ lion in investments, put it this way: Let me discuss for a few minutes the Commentators have made much of backdrop against which this bill was the fact that while Enron had very This looks like the year of the restate- crafted. Our financial markets have ment. It’s certainly disturbing for investors complicated dealings, off-balance-sheet who expect financial statements to be accu- long been regarded as the fairest, the special entities and a host of other rate. most transparent, and the most effi- things, WorldCom simply took ex- Clearly, what is transpiring is having cient in the world. In fact, I think it is penses that should have been treated as a very severe impact on hard-working fair to say—and many of us have said it short-term costs and set them up as American families. Corporate wrong- time and time again—that the Amer- capital investments to be amortized doing is being felt not just at the ican capital markets are one of the over a period of time. Of course, that boardroom table, but it is now being great economic assets of this country was a very substantial reduction in felt at the kitchen table as well. and a very important source of our eco- WorldCom’s costs. As a consequence, First of all, there have been tremen- nomic strength. its profits were boosted by $4 billion. dous job losses. The Washington Post It is becoming increasingly clear that The SEC asked them to come clean, reported that WorldCom was laying off something has gone wrong, seriously and now we think there is probably an- 17,000 employees. The companies that wrong, with respect to our capital mar- other billion of faulty accounting with are going into bankruptcy are shedding kets. We confront an increasing crisis respect to their statement. employees left and right. Enron laid off of confidence that is eroding the Can you imagine—the company went 7,000 people after it filed for bank- public’s trust in those markets. I from showing a substantial profit to ruptcy. Global Crossing laid off 9,300 frankly believe that, if it continues, actually having a loss. People are out employees in the last year. Employ- this erosion of trust poses a real threat in the marketplace making decisions ment at Xerox is down 13,000 from 2 to our economic health. about whether to purchase this stock. years ago. So there is a direct impact Let me begin with one of the most Pension plans are making decisions on on many working families, simply obvious symptoms of this problem: the behalf of their members. And they are through the layoffs, as the companies extraordinary increase in restatements making the decision in the belief that for which they work encounter difficult of corporate earnings. The Wall Street this company is making a good profit. financial times. Journal, citing a study last year by the Instead, it is losing money. In other words, the company is crash- research arm of Financial Executives I read one story where competitors of ing down, and the workers, amongst International, the organization of the WorldCom were apparently debating others, are paying the price. chief financial officers of corporations, within their own corporate ranks: How Second, the adverse impact on em- reported that there were 157 financial do they do it? How are these people ployees clearly extends to the impact restatements by companies in 2000, 207 producing this profit record? We can’t of these corporate failures on employee in 1999, and 100 in 1998. The 3-year total do it. We are competing against them. pension funds, an impact that has led of 464 was higher than the previous 10 We think we are doing everything we many workers to question the security years combined, during which the aver- ought to be doing, and we just can’t of their retirement. A quick look at age number of restatements was 46 produce the same kind of performance. the numbers demonstrates how badly each year. This is a dramatic increase How are they doing it? What is the se- public pension funds have been hit. in the number of restatements. cret they have discovered? It is reported that 21 States have Last month’s revelation by The secret they had discovered was combined losses of just under $2 billion WorldCom is only one example of a to hide their expenses by wrongly from their WorldCom investments. The problem that is becoming increasingly classifying short-term costs as long- California public retirement system re- disturbing. In a recent article titled term investments. ported a loss of $565 million. And the ‘‘Tweaking Numbers To Meet Goals The Xerox Corporation, one of the numbers go on from there. I won’t cite Comes Back To Haunt Executives,’’ the pillars of our economic system, paid a them all, but all across the country New York Times described a series of $10 million fine to the SEC in April, the there are tremendous losses being in- recent corporate failures or near-fail- largest in an enforcement case. They curred. It is said that the loss of value ures that were characterized by ac- reclassified $6.4 billion in revenue and of both WorldCom and Enron has cost counting improprieties: Adelphia Com- restated financial results for the last 5 public State pension funds $2.7 billion. munications, ‘‘$3 billion in loans to its years. I could go on and on with other Of course, in addition to their impact founding family’’ had been concealed; companies: Cendant, MicroStrategy, on workers and pension funds, these Computer Associates was investigated Waste Management. revelations have had a negative effect ‘‘on suspicion of inflating sales and What has led to this increase in re- on shareholders generally. Average in- profits by booking revenue on con- statements? The practice of ‘‘backing vestors are watching their portfolios tracts many years before it was paid’’— into’’ the forecast earnings has cer- plummet and their retirement pros- you raise your revenues, there is no tainly contributed. The New York pects decline. Worldcom’s market cap- offsetting cost, you boost your profits. Times described this practice as fol- italization has gone from $180 billion at Global Crossing is being investigated lows: its peak 3 years ago—this is just ‘‘on suspicion of inflating sales and Some companies do whatever they have to WorldCom—to $177 million last week. profits by making sham transactions do to make sure they do not miss a con- Tyco lost $90 billion in market capital- with other telecom companies’’; Enron, sensus earnings estimate. They start with ization between January 2001 and June ‘‘hiding losses and loans with partner- the profit that investors are expecting and 2002, and on and on. ships that were supposedly independent manipulate their sales and expenses to make The bond markets have also been af- but were actually guaranteed by the sure the numbers come out right. During the fected. WorldCom, for example, has $28 last decade’s boom, as executive pay was in- company’’—Enron filed for bankruptcy creasingly based on how the company’s stock billion in outstanding bonds that are last December—Rite Aid had ‘‘four performed, backing in became more wide- due between now and 2025. Investors, former top executives indicted . . . in spread and more aggressive. Just how much including banks and insurance compa- what regulators called a securities and so is only now becoming clear. nies, stand to lose much of this sum.

VerDate 11-MAY-2000 00:51 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.003 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6329 So you are being hit not only if you He was writing about the year 1929. U.S. economy. And the effects are likely to have a direct connection with Regrettably, that description fits some linger at least through the end of the year. WorldCom, but also if you have an eq- of today’s events. Now, I am certainly The same article quoted the chief uity interest in a bank or insurance not suggesting that this is the practice economist for one of Wall Street’s company that owns WorldCom bonds. of a majority of our business people. In major firms as saying: The current market value of these fact, most of them, I think, try very The economy and markets right now are in bonds is 15 cents on the dollar. hard to play by the rules, and to be the midst of a full-blown corporate govern- The same week that WorldCom’s au- honest and straightforward in their ance shock. . . . To presume somehow that diting irregularities became public, dealings, and they recognize how im- it’s over or that the worst is behind us is Morgan Stanley observed that the portant trust is. naive. spread between corporate bonds and But it is clear, from the number of Furthermore, it is not only American comparable Treasury bonds had wid- departures we have witnessed from investors who are losing confidence in ened by 15 basis points. As the Wall that standard, that what is involved is our markets. A recent New York Times Street Journal wrote on June 27: more than just a few bad apples. Those article entitled ‘‘U.S. Businesses Dim That is a dramatic move that will boost bad apples ought to be punished, and as Models for Foreigners’’ quoted Wol- the borrowing costs for all kinds of compa- punished very severely. I certainly fram Gerdes, the chief investment offi- nies. agree with the President when he cer for global equities at Dresdner In- Now, the problems that I have de- makes that statement. But it seems to vestment Trust in Frankfurt, as say- scribed did not develop overnight. In me we have to move beyond that in ing: many ways, they reflect failures on the order to address the incredible loss of part of every actor in our system of There is unanimous agreement that the investor confidence that is now taking United States is not the best place to invest disclosure and oversight. Auditors who place. anymore. are supposed to be independent of the I have been reading the newspaper ar- company whose books they are review- According to the Federal Reserve ticles carefully, and sometimes the Board, foreign direct investment in ing are too often compromised by the most apt comments come not from the fact that they provide consulting serv- corporate equities has fallen by 45 per- experts but from ordinary citizens. My cent from 2001 to 2002. And according to ices to their public company audit cli- colleague from Texas knows that very ents. Securities analysts are not in a a new OECD report, foreign inflows well because we have a noted citizen of from cross-border mergers and acquisi- position, according to observers, to his State, Dicky Flatt, who is con- warn investors or direct them to other tions, which in 2001 were greater than stantly cited. direct foreign investment into the investments. Karl Graf, a financial planner and ac- As the New York Times reported in United States, have fallen sharply in countant in Wayne, NJ, is quoted in 2002. an article earlier this year entitled ‘‘A the Bergen Record as saying: Bubble No One Wanted to Pop’’: The Wall Street Journal said: The integrity of the game is in question for Eager to help their firms generate business now, and that’s a much bigger thing than if The loss of faith by American and overseas selling securities to investors and reap their the stock market does poorly for two years. investors in U.S. corporate books is churning own rewards and bonuses, Wall Street ana- You have to have faith in the numbers the global financial markets: Share prices are lysts have made a habit of missing corporate companies are reporting, and if you don’t or plunging in America and the dollar is losing misdeeds altogether. can’t, it makes it seem more like gambling value, setting off stock-market plunges in I will come back to these issues later. all the time. It makes me more cynical, and Asia, Europe and Latin America. If the flow But for the moment I simply want to I’m very discouraged. It’s going to take a lot of foreign capital to the United States is dis- note that the problems leading to such to make people feel confident. rupted as a result, the world economy could dramatic lapses are widespread and be jeopardized, because the U.S. relies on Bob Friend, an aerospace engineer overseas money to finance its huge current- seem to be built into the system of ac- from Redondo Beach, CA, a stock in- account deficit, and Asia and Europe rely on counting and financial reporting. That vestor for 20 years, was quoted in the America to buy imports. is what this legislation seeks to ad- L.A. Times as saying: As I draw this preliminary overview dress. Our committee did not engage in There’s a complete lack of trust in cor- of the context in which we are working an exercise in finger-pointing and plac- porate leadership. I think the lack of ethical to a close, I want to speak for a mo- ing blame but we held a series of hear- behavior has destroyed investor confidence. ings—I will discuss them in a minute— ment about the potential loss of world Morris Hollander, a specialist in fi- economic leadership for the United directed toward the future; in other nancial disclosure accounting with a words, we focused on the changes we States. The Wall Street Journal had an Miami firm, was quoted in the Miami article entitled ‘‘U.S. Loses Sparkle as can make that will help to clear up Herald as saying: this situation. It is serious. Icon of Marketplace.’’ It says: We always had the strongest financial mar- The wave of scandals in corporate America The Wall Street Journal, in a recent kets in the world, and that was because of comment, said: is roiling world stock markets. But the con- credible accounting standards. When you see troversy may have an even greater impact in The scope and scale of the corporate trans- that confidence eroding, it is not good. It is gressions of the late 1990s now coming to the marketplace of ideas, where the U.S. eco- a real serious credibility crisis. nomic model is coming under attack. light exceed anything the U.S. has witnessed A recent poll demonstrates that since the years preceding the Great Depres- these views are not unique or unusual. One area of particular importance sion. When asked this question: ‘‘when it and now debate is adoption of account- One can run through the figures and comes to financial information the ing principles. The European Union— find some support for that. Between its major stock brokerage firms and cor- and I do not think many people yet in peak in 1929 and 1931, the Dow fell 79 porations provide to you, do you or do this country have focused on this mat- percent. Over the same period since its you not have confidence that the infor- ter—has indicated that the rules adopt- peak in March 2000, the Nasdaq has mation is straightforward and an hon- ed by the International Accounting fallen 73 percent. But rather than work est analysis,’’ only 29 percent of Ameri- Standards Board will become manda- through these figures, let me simply cans said they had confidence the in- tory for all companies throughout the close this part of my statement with a formation was straightforward and an European Union in 2005. comment from Benjamin Graham’s honest analysis. A majority, 57 per- Traditionally, the U.S. has been pre- classic textbook on ‘‘security anal- cent, did not have confidence in the eminent in the accounting field. We ysis’’: basic information that undergirds our have by far the largest economy. We Prior to the SEC legislation . . . it was by equities market. have a reputation for high standards no means unusual to encounter semi-fraudu- The Washington Post, on June 26, re- for transparency. So generally the lent distortions of corporate accounts . . . American argument on behalf of its almost always for the purpose of making the ported: results look better than they were, and it According to economists and market ana- standards carried great influence. Now was generally associated with some scheme lysts, these still-unfolding corporate and ac- we have the European Union, com- of stock-market manipulation in which the counting scandals have begun to weigh heav- parable in economic size to the United management was participating. ily on the stock market, the dollar, and the States, moving to adopt a uniform set

VerDate 11-MAY-2000 02:40 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.006 pfrm12 PsN: S08PT1 S6330 CONGRESSIONAL RECORD — SENATE July 8, 2002 of accounting standards, to be promul- name all our witnesses, but, for exam- tion if you want to go through your gated by the International Accounting ple, we heard from five past Chairmen whole presentation. You certainly have Standards Board, for all of the Euro- of the SEC; three former SEC chief ac- that right. If you think it will work pean Union countries. So there is a po- countants; former Federal Reserve better doing it that way, that is fine. If tential for real challenge to American Board Chairman, Paul Volcker; former you want to break at some point and preeminence in this area, given what is Comptroller General and chairman of have me speak, that would be fine. happening over here. the Public Oversight Board, Charles Mr. SARBANES. Why don’t I move In fact, the New York Times reported Bowsher; the present Comptroller Gen- ahead, and I will try to compress it a on June 27: eral, David Walker; a number of distin- bit. There is a groundswell among executives guished academics who have been Title I creates a public company ac- in Europe against the American system of studying these issues throughout their counting oversight board. This board is corporate accounting—the so-called gen- careers; leaders of commissions that subject to SEC review and will estab- erally accepted accounting principles—that studied the accounting industry and lish auditing, quality control, ethics, was supposed to be the gold standard in dis- corporate governance; representatives and independence standards for public closure. company auditors and will inspect ac- Before Enron, Global Crossing and of the accounting industry; representa- WorldCom, America had been winning the tives of the public interest community; counting firms that conduct those au- argument on accounting standards. But now, representatives of the corporate com- dits. It will investigate potential viola- a growing number of Europeans are con- munity, and SEC Chairman Pitt. tions of applicable rules and impose vinced that the American system is both too It was a very thorough effort to gath- sanctions if those violations are estab- complex and too easy to manipulate. er the best thinking on these issues lished. Regrettably, in my view, unless we and to give all interested parties a Heretofore we have relied on self-po- come to grips with this current crisis chance to be heard. My colleagues on licing of the audit process, private au- in accounting and corporate govern- the committee, and the ranking mem- diting and accounting standards set- ance, we run the risk of seriously un- ber, Senator GRAMM, participated in ting, and, for the most part, private dermining our long-term world eco- this effort seriously and with commit- disciplinary measures. But question- nomic leadership. Why do countries ment. Senators DODD and CORZINE able accounting practices and cor- look to us? They look to our capital early on introduced a bill dealing with porate failures have raised serious markets. They say: your capital mar- oversight of accounting and auditor questions, obviously, about this private kets are the most transparent; they independence. Many of that bill’s pro- oversight system. Paul Volcker stated: have the greatest integrity; we can visions are reflected in this legislation. Over the years there have also been re- peated efforts to provide oversight by indus- rely upon them; we can make rational Senator ENZI, of course, took a par- business decisions using the informa- try or industry/public member boards. By ticular interest. He is the only certified and large, I think we have to conclude that tion that is provided through your sys- public accountant in the Senate. Many those efforts at self-regulation have been un- tem. If that is no longer the case, we other Members made important con- satisfactory. can expect growing difficulties as we tributions as we moved along the way. That is obviously one of the reasons continue to argue for our preeminence. I will now turn to each title. Title I we are moving, in this legislation, to The Wall Street Journal gave this of the bill creates a strong independent an independent public company ac- summary of the problem, after which I board to oversee the auditors of public counting oversight board. We heard ex- will move onto the bill itself: companies. Title II strengthens auditor tensive testimony in favor of such a The institutions that were created to independence from corporate manage- board. check such abuses failed. The remnants of a ment by limiting the scope of con- The board would have five full-time professional ethos in accounting, law and se- sulting services that auditors can offer members. Two of the members will curities analysis gave way to the maximum their public company audit clients. revenue per partner. The auditor’s signature have an accounting background. All on a corporate report didn’t testify that the This bill applies only to public compa- will have to have a demonstrated com- report was an accurate snapshot, said [Treas- nies that are required to report to the mitment to the interests of investors, ury Secretary Paul] O’Neill. He says it too SEC. It says plainly that State regu- as well as an understanding of the fi- often meant only that a company had latory authorities should make inde- nancial disclosures required by our se- ‘‘cooked the books to generally accepted pendent determinations of the proper curities law. The board members would standards.’’ standards and should not presume that be appointed by the SEC after con- I want to be very clear about this. I the bill’s standards apply to small- and sultation with the Federal Reserve and believe the vast majority of our busi- medium-sized accounting firms that do the Department of the Treasury and ness leaders and of those in the ac- not audit public companies. would serve staggered 5-year terms. counting industry are decent, hard- Titles III and IV of the bill enhance They could not engage in other busi- working, and honorable men and the responsibility of public company ness while they were doing this work. women. They are, in a sense, tarnished directors and senior managers for the Of course, the board will have a staff. by the burden of these scandals. But quality of the financial reporting and We would expect staff salaries to be trust in markets and in the quality of disclosure made by their companies. fully competitive with comparable pri- investor protection, once shaken, is Title V seeks to limit and expose to vate-sector positions in order to ensure not easily restored, and I believe that public view possible conflicts of inter- a high-quality staff. this body must act decisively to reaf- est affecting securities analysts. Title The bill requires that accounting firm the standards of honesty and in- VI increases the SEC’s annual author- firms that audit public companies must dustry that have made the American ization from $481 million to $776 mil- register with the board. Failure to reg- economy the most powerful in the lion and extends the SEC’s enforce- ister or loss of registration would world. That is what this legislation ment authority. Title VII of the bill render a firm unable to continue its does, and that is why I urge its adop- mandates studies of accounting firm public company audit practice. Upon tion by my colleagues. concentration and the role of credit registering, a company would consent Let me now turn to the hearings and rating agencies. to comply with requests by the board to the bill. I know others are waiting It is my intention to go through the for documents or testimony made in to speak, and I will try to summarize bill title by title in a summary fashion, the course of the board’s operations. my remarks. We have been working on but I will pause for a moment and ask The board would possess plenary au- this for a long time, so obviously I my colleague whether he has any time thority to establish or adopt auditing, could go on at some length. pressures. quality control, ethics, and independ- First, we sought to do a very thor- Mr. GRAMM. I don’t have a time ence standards for the auditing of pub- ough and careful job in developing this preference as such. My suggestion is lic companies. But this grant of au- legislation. The committee held a total whenever the Senator gets tired of thority is not intended to exclude ac- of 10 substantive hearings and heard talking and would like me to speak a countants or other interested parties from a broad range of experts, as well while, I can speak, and then he can from participating in the standard-set- as interested parties. I am not going to come back to it. But I have no objec- ting process. So the board may adopt

VerDate 11-MAY-2000 00:51 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.009 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6331 rules that are proposed by professional guaranteed funding of the new over- While companies in the U.S. do not have to groups of accountants or by one or sight board and the FASB by public employ a law firm, an underwriter, or other more advisory groups created by the companies, something I think we all types of professionals, Federal law requires a publicly-traded company to hire an inde- board. agree is extremely important. pendent accounting firm to perform an an- These provisions reflect an effort to Some have asked, why do we need a nual audit. In addition to this shared Federal respond to the argument that you need statutory board? Why not let the SEC monopoly, more than 100 million investors in the experts to either set the standards do something of this sort by regula- the U.S. depend on audited financial state- or help to set the standards. The ex- tion? But others have raised questions ments to make investment decisions. That perts in the industry can make these about the adequacy of the authority imbues accounting firms with a high level of proposals, but the board will have the the SEC has to accomplish all of this public trust, and also explains why there is a authority to adopt or to modify such by regulation alone. Clearly, a firmer strong Federal interest in how well the accounting system functions. proposals or to act of its own volition. base would be established, a stronger We provide for the inspection of reg- reference point, if the board were es- What has happened in recent years is istered accounting firms by the board. tablished by statute, and the potential that a rapid growth in management Firms that audit more than 100 public of litigation that might arise with re- consulting services offered by the companies are to be inspected by staff spect to some of these disciplinary and major accounting firms has created a of the board each year. Firms that fee-imposing powers if they were cre- conflict in the independence that an audit less than that are inspected ated solely by the SEC by regulation auditor must bring to the audit function. According to the SEC, in 1988, 55 every 3 years, although the board has would be avoided by a clear statutory percent of the average revenue of the the power to adjust these inspection underpinning. big five accounting firms came from schedules. Furthermore, I believe, frankly, that accounting and auditing services; 22 The board also has investigative and we need to establish this oversight percent came from management con- disciplinary authority. Former SEC board in statute in order to provide an sulting services. Chairman Arthur Levitt told the com- extra guarantee of its independence By 1999, 10 years later, these figures mittee: and its plenary authority to deal with had fallen to 31 percent for accounting this important situation. We need a truly independent oversight and auditing services, and 50 percent body that has the power not only to set the Let me turn to title II on auditor for management consulting services. standards by which audits are performed but independence. This is a very important In fact, a number of experts argue also to conduct timely investigations that issue. Each of the country’s Federal se- that the growth in the non-audit con- cannot be deferred for any reason and to dis- curities laws requires comprehensive sulting business done by the large ac- cipline accountants. financial statements. That is what is counting firms for their audit clients If the board finds that a registered now required under the securities laws has so compromised the independence firm, or one or more of its associated for public companies. They have to of audits that a complete prohibition persons, has violated the rules or have comprehensive financial state- on the provision of consulting services standards, it will have the full range of ments that must be prepared—and I by accounting firms to their public sanctions available. now quote from the statute—‘‘by an audit clients is required—a complete The board also has the power to sanc- independent public or certified ac- prohibition. According to James E. tion a registered accounting firm for countant.’’ failure reasonably to supervise a part- The statutory requirement of an Burton, the CEO of the California Pub- ner or employee, but we allow an ac- independent audit has two sides to it. lic Employees’ Retirement System, counting firm to defend itself from any It is a private franchise, and it is also CalPERS, which manages pension and supervisory liability by showing that a public trust. health benefits for more than 1.3 mil- its quality control and related internal The franchise given to the Nation’s lion members and has aggregate hold- procedures were reasonable and were public accountants is clear. Their serv- ings of $150 billion: operating fully in the situation at ices must be secured before an issuer of The inherent conflicts created when an ex- issue. I am mentioning this item, even securities can go to market, have its ternal auditor is simultaneously receiving fees from a company for non-audit work can- though it may not seem that impor- securities listed on the Nation’s stock not be remedied by anything less than a tant in the context of a bill this com- exchanges, or comply with the report- bright line ban. An accounting firm should plex, to point again to the effort that ing requirements of the securities law. be an auditor or a consultant, but not both was made in the committee to balance In other words, the accountants have to the same client. competing concerns. been handed by mandate a major piece John Biggs, CEO of Teachers Insur- In effect, we say the firms have this of business because the statute says to ance and Annuity Association—College supervisory responsibility. They should these public companies that they must Retirement Equities Fund, TIAA– not duck this responsibility. Other- have comprehensive financial state- CREF, the largest private pension sys- wise, how are we going to assure the ments prepared by an independent pub- tem in the world, which manages ap- people working for accounting firms lic or certified accountant. proximately $275 billion in pension as- are meeting high standards? On the So in effect we have directed to them sets for over 2 million participants in other hand, we realize it is extremely a significant amount of business. But the education and research commu- difficult in large organizations to con- the franchise, in a way, is conditional. nities, told the Committee: trol right down to the last person. So It comes in return for the certified pub- Because auditors owe their primary duty we provided that if accounting firms lic accountant’s assumption of a public to the shareholders, questions about the pri- have quality control and related inter- duty and obligation. macy of that duty are raised if the audit nal procedures in place that are reason- The Supreme Court stated this well firm provides other, potentially more lucra- able and that are operating fully, the in a decision almost 20 years ago: tive, consulting services to the company. operation of those procedures can serve In certifying the public reports that collec- The board and the public auditor should both as a defense. tively depict a corporation’s financial status, see to it that, in fact as well as in appear- the independent auditor assumes a public re- ance, the auditor reports to the independent The bill applies to foreign public ac- board audit committee and acts on behalf of counting firms that audit financial sponsibility. . . . [That auditor] owes ultimate allegiance to the corporation’s credi- shareholders. The key reason why awarding statements of companies that come tors and stockholders, as well as to the in- consulting contracts and other non-audit under the U.S. securities laws. The vesting public. This public watchdog func- work to the audit firm is troubling is be- board is subject to SEC oversight, tion demands that the accountant maintain cause it results in conflicting loyalties. which is important. Finally, we for- total independence from the client at all While the board’s audit committee is for- malize the role of the Financial Ac- times and requires complete fidelity to the mally responsible for hiring and firing the counting Standards Board in setting public trust. outside auditor, management controls virtually all the other types of non-audit work accounting standards accounting Richard Breeden, former chairman of the audit firm may do for the company. standards are different than auditing the SEC from 1989 to 1993, under the Those contracts with management blur the standards, which the new oversight previous President Bush, said in his reporting relationship it is difficult to be- board will set. The bill provides for testimony before the committee: lieve that auditors do not feel pressure for

VerDate 11-MAY-2000 00:51 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.011 pfrm12 PsN: S08PT1 S6332 CONGRESSIONAL RECORD — SENATE July 8, 2002 the overall success of their firm with the cli- in setting independence standards for public hanced financial disclosure. As I said, ent. Even their own compensation packages company audits is needed. History has shown we provide for a strong public company may be tied to consulting and non-audit that the AICPA and the SEC have failed to audit committee that would be directly services being provided by their firm to the update their independence standards in a responsible for the appointment, com- company. . . . timely fashion and that past updates have By requiring public companies to use dif- not adequately protected the public’s inter- pensation, and oversight of the work of ferent accounting firms for their audit and ests. In addition, the accounting profession the public company auditors, which consulting services, and by establishing an has placed too much emphasis on growing makes it clear that the primary duty independent board with real authority to non-audit fees and not enough emphasis on of the auditors is to the public com- oversee the accounting profession you will be modernizing the auditing profession for the pany’s board of directors and the in- taking important steps toward reversing the 21st century environment. Congress is the vesting public, and not to the man- crisis in confidence in financial markets that proper body to promulgate a framework [on exists today. agers. We provide that the audit com- this important issue]. mittee members must be independent We looked at this carefully. We had There are a lot of other auditing from company management. testimony on the other side. In the services, other than the nine I men- We require that the audit committee end, we took the approach that is out- tioned, that an auditor may want to develop procedures for addressing com- lined in the bill. The bill contains a provide and whose provision we did not plaints concerning auditing issues and short list, nine items, of non-audit preclude. In other words, the statutory also that they put in place procedures services that an accounting firm doing system that we are establishing lists for employee whistleblowers to submit the audit of a public company cannot certain consulting services that, if you their concerns regarding accounting. provide to that company. These in- are the auditor, you cannot perform for Where does an employee go when he clude, for example, bookkeeping or the public company that is your audit sees a problem and is fearful of taking other services related to the account- client, unless you can get one of these it up with management because his ing records or financial statements of case-by-case exemptions from the perception is that management is in- the audit client, financial information board. And those consulting services volved with the problem? We specifi- systems design, appraisal or valuation were the ones which, upon examina- cally provide that they should be pro- services, actuarial services, manage- tion, seemed clearly to raise the most tected in going to the audit committee. ment functions or human resources, difficult conflict of interest questions We have a provision prohibiting the broker or dealer or investment adviser that could result in undermining the coercion of auditors. Some have as- services, and legal services. serted that officers and directors have The thinking behind drawing this auditor’s fulfillment of his auditing responsibility. sought to coerce their auditors or to line around a limited list of non-audit fraudulently influence them to provide services, is that provision of those The public company auditor can provide other non-audit services; that is, misleading information. Obviously, the services to a public company audit cli- auditors ought to be protected from ent creates a fundamental conflict of any but those on the proscribed list, if it clears them with the audit com- that as well. interest for the accounting firm in car- We have a provision that the CEO rying out its audit responsibility. If mittee of the public company’s board of directors. We seek to strengthen the and the CFO who make large profits by the accounting firm is not the auditor selling company stock or receiving for the company, it can do any of these audit committee in very substantial ways, including, as I will mention company bonuses while management is consulting services—it can do any con- misleading the public about the finan- sulting service it wants. But if it is the later, that they should be the ones to hire and fire the auditors—that the cial health of the company would have auditor—so there is a conflict of inter- to forfeit their profits and bonuses re- auditors really work through the audit est problem—then we take certain alized after the publication of a mis- committee for the board of directors services and say: those services you leading report. can’t do. And the reason is, first of all, and that the auditors do not work for We also address the question of rem- in order to be independent, the auditor the management. I think it is very edies against officers and directors who should not audit its own work, as it clear, to some extent, and in some in- violate securities laws, something in would do if it did financial information stances, it is management working which the SEC is very interested. system design or appraisal evaluation with the auditors that have done these We have a provision on insider trades services or actuarial services. It should clever schemes for which we are now during pension fund blackout periods. not function as part of the manage- paying the price. We prohibit the insider trades. So you ment or as an employee of the audit We had the issue of auditor rotation can’t have officers and directors free to company, as it would if it were doing before us. Many witnesses thought the sell their shares while the majority of human resources services, and it audit firm itself should have to rotate the employees of the company are re- should not act as an advocate of the every 5 years, periodically. We did not quired to hold theirs—as, of course, has audit client, as it would do if it were go that far. We recommend here that happened in some instances. providing legal and expert services. Nor the lead partner and the review partner On enhanced financial disclosures, we should it be the promoter of the audit on audits must rotate every 5 years— require that public companies must client’s stock or other financial inter- not the audit firm itself. But we do disclose all off-balance-sheet trans- est, as it would be if it were the broker- provide that audit firm rotation should actions and conflicts. We require that dealer or the investment adviser. be further studied and direct the Gen- pro forma disclosures be done in a way They are the public company’s audi- eral Accounting Office to undertake that is not misleading and be rectors. They have a very defined respon- such a study with respect to the man- onciled with a presentation based on sibility as the auditors. The bill datory rotation of the audit firm. generally accepted accounting prin- doesn’t bar accounting firms from of- I will move more quickly and skip ciples. More companies are doing these fering consulting services. It simply over some sections, but I can always, of pro forma disclosures. They really are says that if a firm wants to audit the course, come back to them if there are not accurately reflecting the financial company, there are certain services it any questions. conditions of the company. cannot perform. And even in that case, We were concerned about the move- We require very prompt disclosure of the bill provides the board authority to ment of personnel from audit firms to insider trades—actually, to be reported grant case-by-case exceptions, so if a the public company audit clients. by the second day following any trans- case could be made why an auditor’s There we put a 1-year cooling off period actions. performing a consulting service ought with respect to the top positions in the We require the reporting of loans to to be permitted, there is some flexi- company, so that you can’t hold out to insiders. There have been some enor- bility to permit it. the audit team the immediate prospect mous loans made. At a minimum, those David Walker, the Comptroller Gen- of an important position in the com- need to be disclosed. Some argue they eral of the United States, in a state- pany. Again, we are trying to protect ought to be prohibited. We didn’t go ment on June 18 said: the independence of the audit. that far. Some testified there are some I believe that legislation that will provide The next two titles, III and IV, deal good reasons on occasion that a com- a framework and guidance for the SEC to use with corporate responsibility and en- pany ought to make a loan to one of its

VerDate 11-MAY-2000 00:51 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.014 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6333 officers. But, at a minimum, they The thought behind this is, if you are offs, followed by the next collapse of a ought to be disclosed. an investor and an analyst is making a company’s pension fund. This is a small item, but it may have recommendation and he puts up front We need to take action to restore a good benefit. We require public com- in his analysis that he owns the com- public trust in our financial markets, panies to disclose to the investors pany stock, or that he is receiving and that really begins with restoring whether they have adopted a code of compensation from the company, or public confidence in the accuracy of fi- ethics for senior financial officers and that his firm has a client relationship nancial information. That is what this whether their audit committee has with the company, or that he is receiv- legislation seeks to accomplish. I urge among it a member who is a financial ing compensation based on investment my colleagues to support this critical expert. We don’t require them to have banking revenues received from the legislation. a code of ethics, although we think company, someone is going to look at Mr. President, I yield the floor. they should. We just require that they this and say: wait a second. I have to The PRESIDING OFFICER (Mr. disclose whether they have one or not. take his recommendation in the con- BINGAMAN). The Senator from Texas is Title V deals with analyst conflicts text of his involvement. recognized. of interest. We have had this incredible Finally, of major importance is the Mr. GRAMM. Mr. President, I begin situation that was brought to the pub- increase we have provided for the budg- by thanking Senator SARBANES for lic attention by the efforts of the At- et of the SEC to, No. 1, provide pay working with me as we have considered this bill. I congratulate him on this torney General of the State of New parity for SEC employees; No. 2, en- day that we are considering the bill in York, Eliot Spitzer, in which research hance information technology and se- reports and stock trades of companies the Senate. curity enhancement; and, No. 3, fund We had a series of hearings that I that were potential banking clients of more professionals to help carry out wish every Member of the Senate could a major broker-dealer were often dis- the important investigative and dis- have attended. I am not surprised that torted to assist the firm in obtaining ciplinary efforts of the SEC. at the end of those hearings good peo- investment banking business. There We provide for two studies. One con- ple with the same facts, as Jefferson was one document that actually ac- cerns the consolidation of public ac- said so long ago, were prone to dis- knowledged the conflict and, as a re- counting firms. Senator AKAKA was agree. sult, stated: very interested in this. There has been I find myself in a position where Sen- We are off base on how we rate stocks and a constant consolidation trend. We ator SARBANES and I agree on many of how much we bend over backwards to accom- have asked the Comptroller General to the key issues of this bill; we differ on modate banking. do the study. And the other is by Sen- others. It is not the first time in man- These analysts would recommend a ator BUNNING directing the SEC to con- aging a bill that we have been on oppo- buy rating on the stock essentially to duct a study of the role of credit rating site sides. help out the investment banking firm agencies in the operation of the securi- I reminded Senator SARBANES this which was trying to get the company’s ties markets. morning that it might very well be this investment banking business. So they In closing, there has been broad sup- will be the last bill we will ever man- get the analysts to say good things port for this legislation. Just a few age together. Since I am leaving the about the company, which will then days ago, the Business Roundtable Senate, and we have something like 40 lead the company to be far more favor- came out in favor of it. The Financial legislative days left, I do not know ably inclined and take on that firm in Executives International early on in whether, after this bill is dealt with, order to do their investment banking the process was supportive, as well as the Banking Committee will warrant business. the Council of Institutional Investors. any of those 40 days. In some instances, they were actu- We have tried hard to listen to the But I would like to say for the record ally recommending buys and then they concerns people raised. that no one can object to the hearings were saying to one another what a tur- The procedure here was that before we had, the approach the chairman has key the company was, but the poor in- the Memorial Day recess—in fact, in taken. Whether you agree with him or vestor was being taken at the time. early May, we put out a committee whether you do not, I think his ap- We set out a number of provisions in print. As we approached markup short- proach has been reasoned and reason- this regard. I will not go through all of ly before the Memorial Day recess, a able. them. number of amendments were proposed. It is clear this issue has attracted a We prevent investment banking staff It was urged that we put the markup great deal of attention. It is clear that from supervising research analysts or over. We agreed to do that. We took all there is a mind in the Congress, if not clearing their reports. the amendments that had been put for- in the country—Congress is not always We prohibit analysts from distrib- ward, and other suggestions that were reflective of the thinking of the coun- uting research reports about a com- being received with respect to the com- try—but there is a sort of collective pany they are underwriting. mittee print, and went back and re- mind that we need to do something, We have a provision to protect ana- worked it. even if it is wrong. lysts from retaliation for making unfa- I have to say to you that, in all can- I lament, as we have gotten into this vorable stock recommendations. dor, many of those suggestions were debate, that the media has decided that We heard moving testimony from meritorious and in fact are now re- the tougher bill is the bill with more someone who said: If you make an un- flected in the legislation that is before mandates; that if you decided to set up favorable recommendation, who knows the Senate. a stronger committee, a stronger board what is going to happen to you? So we tried very hard to listen to with broader powers so they might de- We also provide—the bill here focuses people at every step of the way. We cide to go beyond the legislative man- on disclosure instead of prohibition— then reworked the print. We came back dates, that that is a weaker proposal that an analyst would have to disclose with another committee print. We than having Congress actually write if he owned the company stock. If you went to markup on June 18. We made a auditing standards or conflict of inter- are doing an analysis and if you are limited number of amendments in est standards. doing a report and a recommendation, markup and brought the bill out to the I would submit to my colleagues— you ought to disclose whether you own floor of the Senate by a 17-to-4 vote. and I guess I would have to say at this the company stocks or bonds, whether I simply close by saying how strongly point, I do not know that we will fol- you have received compensation from I believe that financial irresponsibility low this adage—but I suggest this is a the company, whether your firm has a and deception of the sort that we have very important bill. I urge my col- client relationship with the company, seen in all of the instances that keep leagues, as you look at this bill, to re- and whether you are receiving com- appearing on the front pages of our alize we are not just talking about ac- pensation based on investment banking newspapers are a real threat to our counting. If this bill were just about revenues from the company. These are economic recovery. We cannot afford accounting, it could do some good, it not prohibitions, they are just disclo- to wait for the next corporate decep- could do some harm, but it could not sures. tion, followed by the next round of lay- do too much of either.

VerDate 11-MAY-2000 00:51 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.016 pfrm12 PsN: S08PT1 S6334 CONGRESSIONAL RECORD — SENATE July 8, 2002 But this bill is far more than just a that he was not an effective SEC Chair- reasons: No. 1, since when is a person’s bill about accounting. This is a bill man. It is true that he had the ability, background a source of corruption? I that has profound effects on the Amer- under existing law, to go back and will address that a little more in a ican economy; therefore, I think it is change GAAP accounting to set up a minute. Secondly, when you are look- very important that we try to look at board, to do anything he wanted to do, ing at what is and what is not ethical the problem and that we try to come and he did not do it. But it is always so practice, I am not saying it is abso- up with a solution that will be good easy to see these things when you are lutely essential, but it is helpful to not just for today, not just that will looking with that wonderful hindsight. have somebody who knows something bring forth a positive editorial in a Anybody has to give Arthur Levitt about what practice is. newspaper tomorrow, but I submit we credit that he was the first to raise an I submit that in all of these ap- want to try to find one that meets the issue about auditor independence. proaches, from the SEC approach to front porch of the nursing home test. Whether you agreed when he raised it the approach of this bill, we are prob- That is the test where, when we are all or not that it was a problem, that it ably going too far in putting people in sitting around in rocking chairs in a was proven, it is clear that he saw a positions where they are going to have nursing home, and we look back at problem which may or may not be the massive unchecked authority and they what has happened under this bill, that source of our problem today, but many have no real expertise in the subject we will be proud of what we did and people believe it is. You have to give area. Anybody who thinks this board is how we did it. him credit. And I don’t believe anybody just going to slap around a few ac- I want to touch on several things. I else in his position would have done a countants does not understand this want to go through and make several much better job than he did. bill. This board is going to have mas- points, some related to what the distin- Let me also say that I think Harvey sive power, unchecked power, by de- guished chairman said, some just be- Pitt has done an outstanding job in the sign. I would have to say the board cause I want to say them. I want to short period of time he has been at the that Senator ENZI and I set up in our SEC. Much is made of the fact that he talk about what I believe the problem bill has massive unchecked power as is. And I want to make it clear that I did legal work for accounting firms. I well. I mean, that is the nature of what do not know how to fix it. I do not continue to be struck by this approach we are trying to do here. I am not criti- know that this bill fixes it. I do not be- that somehow knowledge is corruption, cizing Senator SARBANES. I am just relieve it does. I do not believe my sub- that somehow the perfect regulator is a minding people that there are two stitute I offered fixes it either. But I guy who just came in off a turnip truck edges of this sword. We are setting up think somebody needs to talk a little and who knows absolutely nothing. a board with massive power that is It reminds me of Senator MCCAIN was bit about it. Then I want to talk about going to make decisions that affect all once telling a story about talking to a the bill that we have before us, and accountants and everybody they work journalist who was covering the Viet- where I agree with it and where I dif- for, which directly or indirectly is nam War and asking the journalist if fer, and what those differences are. every breathing person in the country. he had ever read this seminal work I think the good news is—from the They are going to have massive un- about the history of Vietnam. And the point of view of if consensus is a good checked powers. thing—there is a consensus, and has journalist said: No, he had never read We need to give some more thought been from the very beginning, that we it because he wanted to approach the to who is going to be on this board and need to pass a law. What this President subject with a totally unbiased mind. is it going to be something that is at- cannot do is provide an independent There is a big difference, I submit, tractive enough to make people want funding source and a legal foundation between an open mind and an empty to serve. for this independent board. mind. We make a grave mistake when In the proposal Senator ENZI and I I personally believe the President’s we discount knowledge. Everybody put together, I thought we could en- 10-point program was a good program. today, when they are criticizing Har- hance its prestige by making it a little What the Chairman of the SEC cannot vey Pitt, talks about the fact that he more independent of the SEC. Under do is provide an independent funding represented accounting firms and secu- the committee bill, which is before us, source and provide a legislative foun- rity firms. I guess if he were being the SEC would appoint the members of dation for the board. The Chairman more aggressive than is the public the board. I thought that given the and I agree on that. mood, people would remember that he broad nature of its power, which goes There have been people who have was probably the most rigorous chief far beyond just accounting and far be- reached a conclusion that if you dif- counsel at the SEC in its history and, yond just securities, it would be helpful fered from Senator SARBANES, you did in that process, brought cases against to have the SEC appoint two mem- not really want a bill. I believe those of numerous major companies. They bers—Senator ENZI and I suggested us who have differed do want a bill. would be saying that that experience that one have an accounting back- And the one thing that we agree on, had tainted him for his current work. ground and one not—have the Federal which I think is at the heart of this The point is, the man has broad expe- Reserve Board appoint two; have the whole debate, is a strong, independent rience as chief counsel to the SEC, CFTC appoint two; and then have the board to make determinations about where he prosecuted major firms, and President appoint the chairman. I conflict of interest and about ethics. he has vast experience as probably the think that board would have a higher Now, let me touch on the things that Nation’s premier security lawyer where profile. With a Presidential appointee I wanted to touch on. he defended associations and busi- as chairman, it would raise the pres- I personally thank Senator SARBANES nesses. And quite frankly, when in tige of the board, and we would get bet- for the approach he took in focusing on doubt, I will go with knowledge. When ter people to serve on the board. the problem and on the future. Every- in doubt, I will take experience. I do I urge my colleagues, think long and body knows this has now become a po- not believe that experience taints you. hard when you think about this board litical issue. We know that people are Let me also say that there is this exerting tremendous, unbridled, un- either trying to go back and pin this current mood that anything having checked power, about how many people problem on past Presidents or SEC Di- anything to do with accountants is you want on the board who know some- rectors or they are trying to pin the somehow bad. Having just praised Har- thing about the subject matter. Today, problem on the current President and vey Pitt, let me point out an area in an environment where accountants the current SEC Chairman. I think it is where I disagree with him. When he set are the evil people of the world, the en- a testament to Senator SARBANES’ up his board to oversee accounting eth- emies of the people, having no account- leadership that he has had nothing to ics and to look at issues such as the ants on this board or relatively few and do with that. independence issue, on ethics issues, he not letting them vote when ethics mat- The plain truth is we have had a suc- does not allow people with an account- ters are being dealt with, I assert that cession of great SEC Chairmen. Arthur ing background to vote. kind of approach means you are not Levitt and I disagreed on many things, Now I would have to say that I going to have first-rate people who are but I do not think anybody could argue strongly disagree with that for two going to want to serve.

VerDate 11-MAY-2000 00:51 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.019 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6335 Let me finally get it out of my sys- independence and appointing members, ally doing bookkeeping work, look at tem by saying: I don’t know a whole and I have already talked about that. the practical, the theoretical, and bunch of accountants. I taught at a But the whole heart of the difference— make a determination. public university. About a third of my let’s pick one issue—comes down to Should you be able to do an external students in economics were accounting auditor independence. If you ask me audit and do any one of these nine majors. I would have to say that I have today, should the same company that things? You make a decision and set it a pretty high opinion of accountants. If does an external audit for a firm be out in regulation. Why is that better I had to trust the safety and sanctity able to do internal audits—and I argue than writing it into law? It seems to of my children and my wife today, today I don’t have the knowledge to me it is better for two reasons: One, if after all these revelations about bad say this—I would argue today that I you are wrong, or if accounting prac- accounting, to a politician, a preacher, really don’t know enough about ac- tices change, or if your perception of a lawyer, or an accountant drawn at counting practice and how the process the problem changes, you can go back random in America today, without any works, not just at General Motors but and change it by regulation. The prob- pause I would choose an accountant. at the smallest corporation in Amer- lem with writing it into law is that I am not saying that there are not ica, to make that decision. The bill be- Congress then has to come back and bad people in accounting. I am not say- fore us sets out the law. It is written in change the law. As we know from ing there has not been abuse. But I the law that if you do an external Glass-Steagall, it took us 60 years to think we have to separate people from audit, you cannot do any one of these fix something that had it been written professions. nine different things. I don’t know, it in regulation by the 1940s, it would One of my concerns is, we have al- may well be that after a reasoned anal- have changed. But we didn’t change it ready had a decline in the number of ysis a competent board would decide until 1999. people majoring in accounting. I am they ought to do those things. My The second reason, which I think is wondering, I don’t care what kind of guess is that if I had to decide today, equally important, if not more impor- law you write, I don’t care what kind and you forced me to make a decision tant, is the way the bill is now written of board you set up, if we don’t attract that was going to be binding on the might very well make sense for Gen- smart young people into accounting, country, which is a little frightening to eral Motors. That is, it might make people who understand it is not talent, me, I might well agree with most, and perfectly good sense to have a process it is not personality, it is not cool, it is in some cases all, of these things. But whereby General Motors might have character that ultimately counts, then I don’t believe we ought to be writing three or four different CPA firms— none of these systems are going to that into law. I don’t think anything is maybe more—but they are operating work very well. gained by writing it into law, and I all over the country and all over the Now, I don’t buy the idea that legis- think a lot is lost by writing it into world. That is perfectly feasible. But lating something instead of setting up law. the last time I looked—and I don’t a reasoned system to make decisions is Having read editorials, I know this know, but some of these may have gone a tougher approach; and if it is, I don’t makes the bill tougher, but I don’t out of business and, God willing, maybe want it. But what we have today is an think it makes it better. What I believe some new companies have come into approach that is largely taken in the we should do is set up the best and business—the last time my trusty staff media that the more mandates you strongest board we can, make it inde- looked, there were 16,254 publicly held have, that the more things chiseled in- pendent, give it independent funding, companies in America. I don’t care how flexibly into law, that the more it is and put competent people on it. The smart you are, I don’t care how good one-size-fits-all, whether it has any way Senator ENZI and I did it, and your intentions are, you cannot write a rhyme, reason, or responsibility, that there is nothing magic about it other mandate, if you get too far in the de- that is tougher, and therefore it is bet- than that we did it, we decided to have tail, that fits General Motors and also ter, that in today’s environment is ob- the SEC, the Fed, and the CFTC ap- fits the 16,254th largest company in viously appealing. point two members, one with an ac- America. It just doesn’t work. I hope this doesn’t happen, but it counting background and one without, One of the advantages of setting up would not shock me if we have a series and then have the President appoint an independent board, giving them a of amendments offered tomorrow when the chairman, and he could decide. mandate to look at these areas, but not we start dealing with the bill, where I personally think that having more chiseling it into stone in legislation, is people try to out-tough each other— accountants rather than fewer is a because they can then say, well, here is maybe one to kill all the accountants plus, not a minus. I don’t think they the principle and if you are General and start all over and train new ones. all ought to have an accounting back- Motors, here is how it applies, but if Well, nobody would offer such an ground. I don’t necessarily say a ma- you are XYZ Paint Company in Mon- amendment, but I think we could very jority have to have an accounting tana, or Wyoming, or wherever, you easily get into this oneupsmanship background, but I believe that day in might only have one accounting firm that we can end up regretting. I hope and day out, 20 years from now when operating in the town that you are that will not happen. I want to discour- we have all left the Senate and we are domiciled in. I am not saying you can- age that. not paying attention to these things, it not hire accountants to come from the Let me give you an example of where would help to have people who know Capital City, or wherever, to your town Senator SARBANES and I differ in our what they are doing. I don’t buy the to do work for you, and maybe you opinions. Who is right, I don’t know. I idea that people who don’t know what ought not to be operating in a little think maybe being in this business for they are doing are more moral, other town in a small State; but people a while convinces you that nobody has things being the same, than people who choose that, and people who represent a lock on wisdom and nobody knows in do know what they are doing. In any small States seem to like these compa- each and every case what is right and case, I believe that rather than writing nies being there. I am just saying that responsible, but I want you to under- out these nine things by law that you giving the board the ability to set a stand the difference of our approach. cannot do while you are doing an exter- principle and apply it in one way to Let me just go right to the heart of the nal audit, we ought to set up the General Motors and in another way to matter. strongest board we can, and we ought a small company in a small town The substitute that I offered in com- to give them external funding and plen- makes eminently good sense in prac- mittee with Senator ENZI has an inde- ty of power, and we ought to say to tice. pendent board. I think it is better, but them: you need to look at these nine Now, I know it is not a mandate in you can argue that the two boards are things and do a reasoned analysis. You the same sense as writing it into law, pretty similar. Ours is a little more need to talk to lots of people, such as but I think the result would end up independent of the SEC; though, in the smart theorists who are accounting being better. end, to meet the constitutional test, professors at our best universities, and One of the amendments that I will the SEC has to have authority over it. you probably ought to talk to the offer—and I thank Senator SARBANES We went a little further in terms of bookkeeper in Muleshoe who is actu- for trying—and one thing I have to say

VerDate 11-MAY-2000 00:51 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.022 pfrm12 PsN: S08PT1 S6336 CONGRESSIONAL RECORD — SENATE July 8, 2002 is that nobody on our committee can public that you are carrying out your a massive basis in the American econ- say that Senator SARBANES did not lis- business in an efficient and ethical omy, accountants had to figure up how ten. Nobody can say he failed to try to way. Increasingly, the modern corpora- much all this stuff was worth. hear them out on their concerns and tion does not have 12 steel mills. They GAAP accounting has not kept pace that, in many cases, he didn’t change do not own massive physical assets. with our changing economy. Our ac- the bill to try to respond to their con- Many companies have tried, basically, counting is based on the old steel mill cerns. to get out of the asset business into the of the 1940s where you had how much One of the changes that I support is information business. The value of you paid for the furnaces, and you had giving the board, with the concurrence WorldCom was a discounted present them a certain period of time, and you of the SEC, the ability to grant waivers value of what the public believed its have depreciated them. to these rules and, in fact, to the law. revenue stream was relative to its cost. How do you depreciate an idea? How The problem with waivers on an indi- It never had $100 billion worth of phys- do you book having brilliant young vidual company basis is a practical ical assets, anything like it. That is people who are committed to the fu- problem, and that is, if 16,254 compa- what the value of the ideal was as the ture in your company because they nies are trying to get waivers under public perceived it in a period where own your stock? How do you put that their special conditions—they all come our wise friend, Alan Greenspan, talked down in value terms? to Washington and hire lawyers and about irrational exuberance. That is So when we are pointing the finger at lobbyists; they all petition the board what they thought that company was these people who call themselves ac- and the SEC—if that board has 16,254 worth, but it never had assets that countants, when we are blaming them petitions in 1 year, and it could have were anything near $100 billion. What for every problem in the world, ac- many times that if people are peti- it had was know-how, knowledge of a countants did not put WorldCom into tioning for different kinds of waivers, market, and it had credibility. bankruptcy. Accountants did not put we are going to shut it down for any Enron was like a bank in the 19th Enron into bankruptcy. Enron put other purpose except waivers. century before FDIC insurance. Their Enron into bankruptcy by making bad What will happen, not because any- reputation was the source of their business decisions. The accounting was body wants it to happen but because of value, and when they made stupid busi- a problem because it was slow to show the very nature of Government, the ness decisions that called that reputa- it, but it was there. WorldCom’s prob- people who will get the waivers will tion into question, they collapsed. lems were there. The problem was not not in general be the most deserving I have a great sympathy for account- accounting. The problem was account- people. They will be the people who ing because I used to be an economist, ing did not show the problem soon hired the best lawyers, who had the and in economics, we have something enough. best contacts, who knew how to go called ceteris parabis. It means ‘‘other So if anyone is listening to this de- about it, and who had the money to things being the same.’’ So when we do bate and thinks some investment is spend getting the waiver. not know what those other things are, going to be more valuable because we My guess is the smallest companies we just utter this Latin phrase and pre- have better accounting, in the long run that need the waiver the most will not tend they do not exist—literally pre- that is true; in the short run, I am not get them. Surely at some point we are tend they do not exist. sure that is true. In fact, I argue these going to fix the bill so that the ac- That is valuable in physics where you companies would have gone broke any- counting board, with the concurrence talked about force equals mass times way. Clearly, they would have gone of the SEC, can say: OK, look, in apply- acceleration, or for every action there broke, and they would have gone broke ing this, if you fall into these cat- is equal but opposite reaction. That is quicker had the accounting system egories, you have these circumstances, an assumption. That is a simplification been better. It should have been better. you have a waiver to do things in this because it leaves out friction, and it It needs to be better. way. Clearly, something like that has leaves out gravity. There is nothing The point I am trying to make is the to make sense. wrong with it, but the problem is, ac- following: When you are trying to One of the things we have to come to counting cannot do those things. model a company using GAAP account- recognize, and I think we all recognize I had a famous and great accounting ing, it is hard. It is something nobody it, is that having a beautiful law in a professor named David McCord Wright. has ever done before. law book does not make good law. It Nobody remembers him anymore. I can We are learning how to do this, and has to be practical, and it has to take visualize him today easily defining we will—using concepts like goodwill into account the 1,001—in this case, the WorldCom. He would have talked about to try to be a proxy for things like in- 16,254 different circumstances that can the discounted stream of earnings, and tellectual capital and know-how. That apply. he would have talked about the value is the source of our problems. What is the problem? I guess there of their equity or market capitaliza- I think the fact this came at the end are as many theories about the prob- tion and would have plotted out a proof a financial bubble in the 1990s exac- lem as there are people. I have my own jection of revenues and a projection of erbated the problem. The problem, in theory about the problem, and I will costs and integrating that area to add my opinion, is accounting was easier— share it with my colleagues and any- it up, and that is where the $100 million maybe it was not easier initially. We body else who is interested. was. figured out how to do it on the old Why is all of this happening now? I I doubt if WorldCom’s physical assets model. We will figure out how to do it believe it is happening because of the ever totaled $50 million, probably not on the new model. problems in GAAP accounting. There $20 million. You are an accountant and There is some smart accountant, are other extenuating circumstances, you have the job with the directions probably at Texas A&M right now, and I want to touch on them, but here that are available through GAAP, gen- studying accounting, who will probably is the problem in GAAP accounting. erally accepted accounting principles. get an MBA, who will figure out how to Senator SARBANES used a perfect exam- You have the job of trying to model, get all this goodwill off our books— ple of it, and I will just take his exam- for accounting purposes, what which is a silly concept in my opinion, ple. He talked about how WorldCom WorldCom looks like. You do not have but it is the only one we have—and saw its market capitalization fall from the ability to utter a Latin phrase and come up with models of intellectual $100 billion to $100 million. How is that wish away things you do not under- capital that will have meaning, just as possible? I remember when Enron went stand. Our problem today is that our that steel furnace in the 1940s and the bankrupt. People said: Where are the GAAP accounting has not kept pace write-down of it that made sense, but assets? When a company goes from $100 with the world in which we live. that is not the world in which we live. billion to $100 million, what happened In this world where knowledge is That has to be dealt with. to the assets? power, in this world where know-how is Something the chairman’s bill does, Here is the problem. Increasingly, wealth, it is very hard to model with something that I very much am in the asset is a combination of know- GAAP accounting. In the decade of the favor of, is it gives independent funding how, credibility, and a belief by the 1990s, when this new model was used on to FASB. The two things that have to

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.024 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6337 be done and only Congress can do them body’s livelihood. I believe there are much sooner if we can stay on the bill, effectively, in my opinion, are: No. 1, people who are practicing accounting, if we don’t drift on into these other we have to have an independent, self- or veterinarians or economists or any areas. When people who are for the bill funded accounting standards board, profession, there is somebody in it who in its current form want to stay pretty FASB, and we have to have account- ought not to be in it. I think when this close to the bill and people who are ants setting accounting standards. No. board, which is a private entity—and against it in its current form want to 2, we need to set up this board to over- again this is not a problem with the stay pretty close to the bill, we ought see ethics in accounting. Sarbanes bill. This is a problem of our to stay pretty close to the bill. I do not think it matters whether it substitute as well. It is a strange kind I thank my colleagues for their in- has a majority of accountants or not, of entity. We want it to be private, but dulgence. I look forward to working on but it needs to have a reasonable num- we want it to have governmental pow- this issue. I yield the floor. ber of people who have a background in ers. We have tried to structure it in The PRESIDING OFFICER (Mr. DOR- accounting so they know what they are ways to try to accommodate this. GAN). The Senator from Wyoming. doing and so they have an intellectual The bottom line is, when this board Mr. ENZI. Mr. President, these are stake in it being done right. It is a dan- is taking away somebody’s livelihood interesting times. I hope colleagues gerous thing when there are people and that person believes they have have been listening. The two presen- with massive power who do not have been wronged, they ought to have a tations that preceded me were out- any kind of intellectual stake in the right to go to the Federal district standing explanations of both the bill application of that power, and it con- courthouse. They ought to have a right and the financial problems facing the cerns me. to say: I do not think that was right, world today. I don’t think you can get So to conclude, let me say this: Sen- and I want my day in court. a clearer explanation of the problems They ought to have to pay for it, and ator SARBANES and I, when we were at than those given by Senators GRAMM at that point I think all the material this point on the financial services and SARBANES. They are very detailed involved has to be made public, but modernization bill, were on opposite and very much to the point and lay the that is a right I think people have to sides. I was for the bill. I saw it as the groundwork for what we are about to have. Those two amendments are very epitome of all wisdom. He was opposed do. narrowly drawn, and they go to the to the bill and saw it in less glowing Usually in this Chamber, we have a very heart of the bill. I know some of terms. By the time we got out of con- solution and we are looking for a prob- our colleagues are thinking about of- ference, it was our bill. We were to- lem. Today, we have a problem and we fering a whole bunch of other amend- gether on it and 90 Members of the Sen- are looking for a solution. We have a ments. I submit that trying to work problem before the Senate. The way ate voted for it. It passed the Senate out a compromise with the House is this process works, is that we try to initially on a very close vote, a very going to be difficult. I think we will place the solution in the best possible narrow margin. succeed at it, but I think if we get a I do not think that will be the case form. Under our form of government, whole bunch of other issues involved, here. I think this bill will pass by a the Senate will work on its bill; the we are making the mountain higher. I very large margin. I also think it is House works on another bill on the believe we are ready to legislate in this same topic. When those two bills have possible that by the time we have rec- area, and I think if we can limit what been completed, there will be a con- onciled this bill with the House, that we are doing to this area that we can ference committee and we will work we can have a bill that will be very pass this bill, we can go to conference, broadly supported. At that point, I and we can come back and have a bill out the differences. Through every one hope I will be in a position of sup- signed into law before we leave. I think of those processes, there will be porting it. if we get into a lot of other areas, I am changes to the legislation. We get 100 There are many good things in the not saying the world comes to an end if different opinions from 100 different Sarbanes bill. There certainly has not you put an amendment on here—hav- backgrounds on any piece of legisla- been a bill, since I have been in the ing us write accounting standards with tion. That is what makes our form of Senate, that was better intended than regard to stock options, for example, government work. At the other end of this bill. I do think it can be improved. that is a tax issue. I would probably the building, there are 435 people from I think it legislates too much. I think want to make the death tax permanent different backgrounds. They all lend it does one-size-fits-all mandates. It as a second-degree amendment, but I their opinion issues that come before takes them a little bit too far. That, to am not saying the world comes to an the House. some guy outside government, does not end if we do that. It is sometimes a slow process, but it sound very important, but it is very I am saying if we get off into those is the best process in the world. It will important when one starts talking kind of issues, where you have strong work on this problem for which we are about application. If we do this thing feelings on both sides of the aisle—and looking for a solution. right, and if we build a consensus and that would not be any kind of partisan If the economy were different today, it works well, that will be the final vote—I think it is harder for our chair- we would not have this problem. When monument of the bill. man and for the members of this com- there are changes in the economy, we I hope we can offer germane amend- mittee to get their job done. I hope we realize accounting problems—or at ments. As of right now, I think there will have a limited number of amend- least that is when the accounting prob- will probably be two amendments I will ments. I hope they will be germane to lems become apparent. That is where offer. One will have to do with this the bill. we are today. issue about granting waivers on a blan- Finally, at some point we are going I am the lone accountant in the Sen- ket basis so that rather than making to take up Yucca Mountain. I am not ate. There is a good reason for that. every individual company that has spe- up high enough in the pecking order to Accountants are out there doing very cific kinds of problems come in and ask have gotten the word as to exactly detailed work. When you listen to what for an individual waiver, that the SEC when that is going to be. Other things is in this bill, you are going to hear de- and the board, when they agree, could being the same, I would rather finish tails that you do not hear with other simply issue a set of principles, and if this bill first and then go to Yucca legislation. It is the nature of the occu- you qualify you would get the waiver. Mountain than to stop in the middle of pation, of the profession of accounting. If you do not, you do not. Pretty it. But it is a highly privileged motion. In the last 6 months, there has been an straightforward amendment. Any Member can make it. It is not de- increased interest in the accounting The second amendment I believe I batable. I assume at some point some- profession. Kids in colleges have been will offer will have to do with appeals. time tomorrow that motion will be asking the Deans about this phe- Under British common law, we have al- made. As I figure the time limit under nomenon called accounting that no- ways taken a very strong position in that privileged motion, it would take body has talked about for a long time. affecting the right of a person to earn about a day. It is a tremendous opportunity for ac- a living. We have set very high stand- I don’t see any reason this bill should countants to finally explain what they ards when it comes to taking some- not be finished this week, and maybe do.

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.027 pfrm12 PsN: S08PT1 S6338 CONGRESSIONAL RECORD — SENATE July 8, 2002 Some of the kids are looking into ac- staff were both honest and fair. Al- is no requirement that you have any counting for the wrong reasons. They though we were not able to agree on kind of experience. But that is why want to be one of the green eyeshade everything, which is the basis of nego- there are fewer accountants here than people bringing down huge corpora- tiation, I believe all negotiations took there are a number of other profes- tions. That is not what it is about. It is place in good faith. I thank the Chair- sions—it is a matter of timing. an opportunity to make sure everyone man for that. I do think we have a bill While I am hesitant to move forward understands business in America. Ac- that is a good basis for finishing the with the number of changes included in countants are the people with the very process and going to conference. the bill, I do believe the legislation is basis who both know it and can explain Enron, Global Crossing, WorldCom, necessary given the current lack of it. That is their job. and the other numerous restatements faith in accountants. Somewhere along the line, it is pos- that are occurring have caused a ripple Make no mistake about it, this legis- sible for people to get distracted from effect on the trust of corporate execu- lation is federalization of the account- that main goal. We are trying to bring tives and their auditors by the public. ing industry. This bill places a Federal them back to that main goal—pro- These executives, the persons in whom Government bureaucracy at the helm viding a basis where everyone can un- shareholders put their trust, have of accounting regulation. While the derstand the value of the companies in stained the entire corporate commu- legislation doesn’t prevent the State which they are investing. nity. A few bad apples have spoiled the accountancy boards from continuing to Today we are addressing accounting bunch. As a result, the legislation we regulate accountants registered in legislation that has been reported out will be debating this week will restruc- their States, it does establish an over- of the Banking Committee. It has been ture the way executives operate by in- lord regulator to oversee the firms through initial scrutiny. It has been creasing accountability and making it which audit publicly traded companies. through the process that leads us to easier to discipline fraudulent behavior My hope is that this new oversight the floor. I have talked about the floor while at the same time increasing pen- structure will renew the faith the pub- process, but so far this has only been alties for illegal activity. lic has in auditors and the financial through the hearings process. We had This legislation will force the man- statements which they help prepare. 13 hearings in the Banking Committee. agement of companies to be account- In addition to my own proposal, over They were on very diverse topics and a able to their shareholders by requiring the past several months I have seen a very diverse bunch of people who un- that they certify the accuracy of their lot of different proposals. I have also derstood each of those topics testified. financial statements. In addition, the spoken to and met with many of my I commend Senator SARBANES for the legislation will require that members colleagues about this issue. I have spo- way he conducted the process of the of corporate audit committees are ken with groups from different indus- hearings, and then the process of nego- independent directors. We provide the tries; I have talked to scholars, con- tiations that led up to the committee audit committee the ability to engage sumer advocates, and regulators. All vote. That happened over the last sev- outside consultants and advisers and the groups agree that steps need to be eral months. On this issue, I can think provide them the resources they need taken to enhance the oversight of ac- of no other Chairman in either the to determine whether the accounting countants. House or Senate who did a more thor- techniques being used are in the best I have examined several existing ough job in conducting hearings. The interests of the shareholders. models of quasi-public regulators such Banking Committee stayed on the sub- In addition, all employees should be as the New York Stock Exchange and stance and did not allow enormous out- subject to the same rules when selling the National Association of Securities side pressures on this issue to interfere company stock. In this regard, the bill Dealers. One point is clear: When these with trying to get to the bottom of the prevents officers and directors of a organizations were established, there real problem. The hearings were not company from purchasing or selling was a desire to appoint the most in- finger-pointing. The hearings were an stock when other employees are re- formed individuals, those who actually attempt to get valuable information to stricted. And when these officers or di- deal with the industry on a day-to-day arrive at the best possible solution. rectors do sell stock in the companies basis, as majority members of the In addition, the witnesses at the in which they work, they should report boards that oversee the industry. hearings presented objective views. the transaction on the next business For instance, the National Associa- Had it been my choice to call the wit- day. tion of Securities Dealers, NASD, has a nesses, I would have chosen nearly However, the cornerstone of this leg- large board which must consist of any- every person who testified. That shows islation will be to change the way in where between 17 and 27 members. No- the care and concern that went into which a company’s auditors interact where in the NASD rules does it state choosing the individuals who provided with their clients, and also to force their board members may not serve if this basic information. The witnesses them to be more accountable. While I they have previously been involved in offered several different views, and believe that accountants have ex- the securities industry. As such, the they came from diverse backgrounds. tremely high ethics and standards, I do majority of the NASD board members I also thank the Chairman for the believe the current environment has have worked within the industry. way he and his staff conducted them- highlighted a number of problems in- Why should the accounting industry selves through the endless negotiations herent in the current oversight struc- be treated so differently? Why would we had during that same timeframe. ture of the accounting industry. we create a board which oversees the Right now, it seems as if everyone is I do believe it is an awesome task to accounting industry and then require writing an accounting bill—including be the accountant trying to explain that a minority of its members have myself. In fact, I got calls as soon as this to everybody else. I do need to ex- ever practiced accounting? The NASD Enron occurred from some of the House plain a little bit why there are not plays just as important a role in the Members who said they would really more accountants in legislatures or in protection of investors as the account- like to work on a bill with me. Of the Senate or in the House. That is being oversight board will, so why course, the first question I had to ask cause if you pick up experience in leg- shouldn’t the persons who sit on this them was, What did you find really islating, most of that is done during board have the best possible knowledge happened with Enron? Usually the an- the tax season and we need the ac- of the accounting industry? swer was, We don’t know yet. Their re- countants during the tax season. And I do want to thank Senator SARBANES sponse was, but we want to get ahead they need the business during the tax for the change he made in the legisla- of the curve. season. If they don’t earn at least 70 tion. Originally it said there could be I am glad we had the patience to percent of their revenue during that no more than two accountants on this wait, to hold the hearings, and then to time, they are out of business, which five-person board. He made the change negotiate through a number of dif- precludes them from picking up legis- so that two will be accountants. It is a ferent bills to come up with the one be- lative experience. There is no require- very significant change so that ac- fore the Senate today. Those negotia- ment that you have to have legislative countants are represented on the tions by Senator SARBANES and his experience before you come here. There board. Previously it would have been

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.030 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6339 possible to have no accountants regu- ject them to the will of the trial bar, What will this legislation provide? It lating the accounting profession. they will surely continue to be driven will provide a strong oversight body to Every piece of legislation has its from existence, one firm at a time. watch the accounting industry. It will handful of unintended consequences, Instead, we should punish the wrong- provide a set of corporate governance despite how well-meaning Congress can doers to the fullest extent possible and laws that will require corporate execu- be. I fear the way in which the ac- rely on good managers of companies to tives to become accountable for their counting industry will change when a do their jobs effectively. In the end, we financial statements. It will provide group of non-accountants set the are going to end up making the audit assurances that corporate boards standards which accountants must fol- committee members full-time employ- watch the management of the company low. Lawyers do not have non-lawyers ees, and then there will not be any with a more critical eye—no longer setting ethical and professional stand- independence—another problem about will board memberships be cushy jobs ards which they must follow, yet I which we have to worry. with no responsibility. would argue that those standards are Having said this, I do believe this leg- It will also provide assurances to the as important as accounting standards islation is needed at this time. Con- American people that Congress will not and ethics. gress must produce a remedy to help allow these millionaire and billionaire I don’t want my message to be mis- restore investor confidence. We have executives to steamroll their obliga- construed. I do believe that a board seen that real penalties, or at least a tions to the shareholders. It will also should be established to oversee the ac- threat of strong penalties, need to be ensure that research analysts aren’t counting industry. I also agree the hung over the heads of corporate ex- being told what to say by the invest- board members should have all the ecutives to assure they maintain their ment bankers. tools necessary to effectively oversee obligations and responsibilities. The To a great extent, I believe the mar- the industry. I agree that the board moral and ethical breakdown among ketplace has made remarkable changes members should be full-time and inde- some of those executives is disgraceful, to address a number of the issues which pendent from the accounting firms. I and investors must know these execu- were highlighted by these corporate agree that they should be appointed by tives will be punished severely when failures. First and foremost, corporate government and not by industry. But I they make selfish judgments. boards and audit committees will no do not agree that the members of the A major concern, as we have gone longer turn their head when manage- board should be excluded just because through this legislation, trying to put ment wants to engage in questionable they may have passed a CPA exam 25 the bill in its present form, has been ethical engagements. Also, credit rat- years ago. the relationship to small business. As I ing agencies will impose much more To the contrary, because I believe mentioned 16,254 companies are the scrutiny on the companies they rate to this board should be as effective as pos- ones that are registered with the SEC. protect financial institutions and other sible, I believe the board members There are thousands of companies out lenders. Lenders themselves will re- should know how an audit engagement there that are not SEC registered busi- quire more information about the sta- works and they should know the pres- nesses. There are thousands of entities bility of the companies in which they sures that are applied to an auditor out there that hire auditors to give invest. Research analysts will ask from a client. I believe with this confidence in the financial statements more questions about the company, knowledge the board may in fact apply they have that are not SEC filed. and more importantly, they will de- stricter standards than a board of non- One of our concerns has been that we mand more answers from executives. accountants. not change business so drastically that But perhaps, most important of all, is As I said, I believe accounting firms these small businesses will no longer be the fact that investors, both institu- should be subject to strict scrutiny. able to afford auditors. So we built in tional and individual, will be more However, I do not believe this legisla- protections for the small businesses. critical. tion should pave the road for the trial Our intent with this bill is not to have Shareholders will wake up and learn bar to open frivolous lawsuits against the same principles that apply to the about the power of their votes on cor- accounting firms. Arthur Andersen no Fortune 500 companies apply to the porate actions. We’ve already seen longer exists. Can we really afford to mom-and-pop business. When they hire great strides from some institutional lose another one or two of the final an auditor, they want that auditor to investors in that they plan to use their four firms? We used to call them the give them every bit of information votes in shareholder meeting to keep big five. Now we call them the final they possibly can so the information executives honest and accountable. four. they get improves their business and They also plan to use their votes to im- It was mentioned earlier that there doesn’t hide anything from investors. pact executive compensation packages. are 16,254 SEC-filed corporations. That Mom and pop are the investors. These private sector solutions will be is 16,254 to be reviewed, primarily by We have taken a lot of care to be sure more effective than any legislation four accounting firms. If the trial law- we are not cascading the provisions which can be passed out of Washington. yers pick off one after another after down into small business. We will look One of our country’s greatest another of the firms because the Board at additional ways, I am sure, to make strengths rests in the dominance of our provides information and because they sure that does not happen. This is not capital markets. But the strength of are handed that information, how will a license to States to do the same our markets is only as strong as the we have those 16,254 audited at all? thing that we are doing on a Federal underlying confidence in the listed I am hoping there are a lot of young basis. There is recognition that on a companies. When these companies people listening who are going into ac- Federal basis there is a bigger problem build facades instead of standing on counting who may start firms and grow than on a State-by-State basis. principle, it shatters the entire system. the firm themselves so they can handle I also want to point out there is also Congress and the SEC must find a mid- an audit of a Fortune 500 company. But a responsibility by the individual in- dle ground where we allow the market- it doesn’t happen overnight. And we vestor. They have to learn to diversify place to continue to operate in the cap- have to make sure that there is audit- and not to keep all of their eggs in one ital markets to the greatest extent ing, and not just consulting, which basket. I hope we can turn this situa- possible but also assures investors, some people will point out is where tion into a chance to educate small in- both domestic and internationally, most of the money is these days. vestors as to how best to manage and that the U.S. capital markets will con- It makes me nervous to know that invest their money. Nothing will bring tinue to be worthy of their invest- essentially only four accounting firms back the billions of dollars employees ments. We must continue to convince now have the resources and expertise of some of these companies have lost. investors, that at the core of the Amer- to audit the world’s largest companies. But hopefully the collapse in con- ican capital markets, there must be a We rely on these firms to verify the fidence will ensure that individuals high level of integrity and ethics by all books of diverse and complex compa- will never again lose their life savings players. nies because they are the only firms because of a lack of diversification or I want to reiterate another message that can provide this service. If we sub- knowledge of finance. that has been prevalent this afternoon.

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.032 pfrm12 PsN: S08PT1 S6340 CONGRESSIONAL RECORD — SENATE July 8, 2002 As we get into this bill, there are vir- appropriations Act, and notwithstanding vada is worried about is someone at- tually no limits on what amendments subsection (h), all’’. tempting to weaken the bill that you can be put on—at least unless there is On page 76, between lines 16 and 17, insert have brought forward to prevent State a cloture motion. the following: securities agencies from looking at I hope people will recognize the need (d) CONFORMING AMENDMENT.—Section wrongdoings in the State of Nevada. to have something done, the need to 10A(f) of the Securities Exchange Act of 1934 As the Senator from Maryland (15 U.S.C. 78k(f)) is amended— knows, the attorney general from New get it done quickly, and not try and (1) by striking ‘‘DEFINITION’’ and inserting make this a vehicle for everything they ‘‘DEFINITIONS’’; and York, who has been here, is very con- ever thought needed to be done with (2) by adding at the end the following: ‘‘As cerned about this. It is my under- corporations. used in this section, the term ‘issuer’ means standing this bill does nothing to The purpose of this bill is not to an issuer (as defined in section 3), the securi- weaken that; is that true? solve the international problems of ties of which are registered under section 12, Mr. SARBANES. If the Senator business for everything that we ever or that is required to file reports pursuant to would yield. thought of. section 15(d), or that will be required to file Mr. REID. I would be happy to yield. such reports at the end of a fiscal year of the I hope my colleagues will constrain Mr. SARBANES. That is correct. At issuer in which a registration statement one point there was talk of an amend- their amendments, keep them to the filed by such issuer has become effective pur- corporate governance and accounting ment floating around but—— suant to the Securities Act of 1933 (15 U.S.C. Mr. REID. But the point is, it is not area we are working on, and help us to 77a et. seq.), unless its securities are reg- in the bill? get this bill finished as quickly as pos- istered under section 12 of this title on or before the end of such fiscal year.’’. Mr. SARBANES. No, it is not in the sible. bill. Again, I thank Chairman SARBANES The PRESIDING OFFICER. If there Mr. REID. On behalf of the secretary and Senator GRAMM for their tremen- is no further debate, without objection, of state of Nevada, who I indicated ear- dous efforts and insight which they the amendment is agreed to. lier worked closely with the Senator provided in the previous explanation of The amendment (No. 4173) was agreed from Connecticut in bringing forward a this, and for the hours of work they to. very good election reform bill—he is have put into the solution that is be- Mr. SARBANES. Mr. President, I very progressive, and a fine secretary fore us today. I hope we can keep it to move to reconsider the vote, and I of state—throughout this letter, he ac- a limited solution, take care of the move to lay that motion on the table. knowledges how important this legisla- problems that are recognizable, and The motion to lay on the table was tion is. I wanted this to be spread on reach agreement so we can get this to agreed to. the RECORD before my friend’s atten- conference and get a bill to the Presi- Mr. SARBANES. Mr. President, I tion was diverted. dent for his signature. suggest the absence of a quorum. Mr. SARBANES. I appreciate the Thank you, Mr. President. I yield the The PRESIDING OFFICER. The Senator’s comments. floor. clerk will call the roll. Mr. REID. My friend, secretary of The PRESIDING OFFICER. The Sen- The assistant legislative clerk pro- state Heller, goes on to say: ator from Maryland. ceeded to call the roll. As Nevada’s chief securities regulator, I Mr. SARBANES. Mr. President, I ask Mr. REID. Mr. President, I ask unan- believe there is an immediate need to restore unanimous consent that it be in order imous consent that the order for the investor confidence in our securities mar- to send an amendment to the desk and quorum call be rescinded. kets. have it immediately considered. This The PRESIDING OFFICER. Without I stand with my fellow state securities reg- amendment makes two simple changes objection, it is so ordered. ulators in endorsing Title V, Analyst Con- to the bill. One is a technical change to Mr. REID. Mr. President, I first want flicts of Interest, in its current form and strongly oppose any amendment to this title conform to the budget rules, and a con- to extend my appreciation to the Sen- that would reduce our ability to investigate forming change involving the defini- ator from Maryland for this bill. It is wrongdoing and take appropriate enforce- tion of ‘‘issuers.’’ We have discussed really well timed and well done. ment actions against securities analysts. this. It has been cleared. I would like I received a letter today from the However, an industry amendment has been to go ahead and take care of that busi- Secretary of State of the State of Ne- circulated that would prohibit state securi- ness, if I could. vada, a Republican. ties regulators from imposing remedies upon The PRESIDING OFFICER. Is there By the way—the Senator from Con- firms that commit fraud if it involves securi- objection? necticut is in the Chamber—the Sec- ties analysts and perhaps even broker-deal- retary of State worked very closely ers that serve individual investors. If Ne- Mr. GRAMM. Mr. President, there vada’s investigative and enforcement au- isn’t any objection. I think this clari- with the Senator from Connecticut. As thority in this area are weakened, so too will fies the bill. I think it is something the Senator will recall, he is a very the confidence of Nevada investors. that both sides are for, even though we fine man. I wish he were a member of He certainly opposes this. had a previous agreement not to do any the Democratic Party. He is not. But Mr. President, I ask unanimous con- amendments today. It is simply so he is an outstanding public servant. sent that the letter from our secretary technical that I don’t think anybody He wrote me a letter, which said: of state be printed in the RECORD. would have any concerns. DEAR SENATOR REID: Investor confidence in There being no objection, the letter The PRESIDING OFFICER. Without the integrity of U.S. securities markets has was ordered to be printed in the been badly shaken as a result of Enron, Glob- objection, it is so ordered. RECORD, as follows: al Crossing, WorldCom, and other alleged AMENDMENT NO. 4173 wrongdoing. The failure of several large cor- OFFICE OF THE SECRETARY OF STATE, The PRESIDING OFFICER. The porations to police themselves cries out for July 8, 2002. clerk will report. reform before the negative impact on our Hon. HARRY REID, The assistant legislative clerk read markets damages our National economy. U.S. Senator, Hart Senate Office Building, as follows: The Senate is to begin consideration of S. Washington, DC DEAR SENATOR REID: Investor confidence in The Senator from Maryland [Mr. SAR- 2673, The Public Company Accounting Re- form and Investor Protection Act of 2002, on the integrity of U.S. securities markets has BANES] proposes an amendment numbered been badly shaken as a result of Enron, Glob- 4173. Monday, July 8. I fully support S. 2673 and oppose any efforts to weaken its provisions. al Crossing, WorldCom, and other alleged Mr. SARBANES. Mr. President, I ask wrongdoing. The failure of several large cor- unanimous consent that reading of the If I could have the attention of the porations to police themselves cries out for amendment be dispensed with. Senator from Maryland, the manager reform before the negative impact on our The PRESIDING OFFICER. Without of this bill, I have here a letter from markets damages our national economy. objection, it is so ordered. the secretary of state of the State of The Senate is to begin consideration of S. Nevada, who says: 2673, The Public Company Accounting Re- The amendment is as follows: form and Investor Protection Act of 2002, on I fully support S. 2673 and oppose any ef- (Purpose: To make technical and conforming Monday, July 8. I fully support S. 2673 and forts to weaken its provisions. amendments) oppose any efforts to weaken its provisions. On page 65, line 11, strike ‘‘All’’ and insert I say to the Senator, one of the As Nevada’s chief securities regulator, I be- ‘‘Subject to the availability in advance in an things the Secretary of State of Ne- lieve there is an immediate need to restore

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.034 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6341 investor confidence in our securities mar- quarter you are involved in has a good This legislation goes a tremendous kets. financial statement. People go to what- distance in addressing some of the I stand with my fellow state securities reg- ever ends they can to make sure that major concerns I have heard from peo- ulators in endorsing Title V, Analyst Con- flicts of Interest, in its current form and that quarterly statement looks good to ple in Nevada. And I am pleased this strongly oppose any amendment to this title keep the stock price up. That is all bill has gained, as I have indicated, bi- that would reduce our ability to investigate that matters. It does not matter partisan support. wrongdoing and take appropriate enforce- whether the company is losing money. Indeed, it seems that after staying si- ment actions against securities analysts. It does not matter if their employees lent for so long, and after allowing a However, an industry amendment has been are being laid off. It does not matter, permissive atmosphere where busi- circulated that will prohibit state securities as long as they do everything they can nesses could do no wrong, the Presi- regulators from imposing remedies upon firms that commit fraud if it involves securi- to do what can be done to make sure dent, our President, and Republicans in ties analysts and perhaps even broker-deal- that stock price stays the same or goes Congress, quite frankly, are now re- ers that serve individual investors. If Ne- up. versing course. Some are falling all vada’s investigative and enforcement au- I have spoken previously on efforts of over themselves to jump on the band- thority in this area are weakened, so too will Senators to secure the future for Amer- wagon and support this legislation. the confidence of Nevada investors. ican families. In fact, Senate Demo- They have done it after hearing from An amendment may be offered on the Sen- crats are using that as a theme: to se- an outraged public. And that is good. ate floor under the guise of creating national uniform standards for securities analysts. Its cure the future for all American fami- Tomorrow I will be eager to hear real intent, I fear, is to eliminate remedies lies. Securing our future means not what the President has to say in New that state securities regulators may impose only making sure our borders are safe York. I hope that he does not say we on firms should fraudulent activity be un- but also securing educational opportu- are going to have to enforce the law earthed in an investigation. This approach is nities for all our children and access to that we have, because the law we have clearly ill-advised in today’s climate of in- affordable prescription drugs and af- has not been enforced, especially by vestor uncertainty. fordable health care. the people who surround this President As Nevada’s Secretary of State, my office We must also provide pension protec- is charged with administering the Nevada and his administration. Uniform Securities Act. My office is in cur- tion for American families. In part, For him to go to New York and say rent negotiations with Merrill Lynch regard- that means extending pension cov- we need to enforce the law more ing a possible settlement of analyst conflicts erage. There will be an opportunity, be- strongly will not do the trick. He needs discovered in a lengthy investigation by the fore this legislative year ends, where to jump on the bandwagon with this New York Attorney General’s office. My we can have a good debate. legislation. We need additional legisla- staff is also participating in a task force in- The vast majority of workers in Ne- tion. vestigation of UBS Paine Webber/UBS War- vada have no pensions. As a con- The President ran a campaign based burg. This amendment would greatly hamper sequence, they face their retirement on themes such as responsibility and our ability to investigate analyst conflicts years with inadequate resources. Sen- accountability, but recent news reports and would have a detrimental effect on Ne- vada investors. ator BINGAMAN, chairman of a task suggest that both have been lacking in I urge you to support S. 2673 and to vote force, has raised awareness of the lack his explanations of his past dealings in against any amendment to weaken the en- of pension coverage for American the business world. forcement powers of state securities regu- workers and is working on legislation Prior to holding public office, our lators. The result of an amendment such as to address that problem. President has parlayed his connections this could be that virtually every one of the My colleagues have also led the way as a member of a wealthy and powerful thousands of actions brought by state securi- with other legislative initiatives to re- family to arrange a number of, some ties regulators every year would be pre- empted, as well as all civil suits and arbitra- store investor confidence and provide would call, sweetheart deals. In edi- tions under state law. In light of the recent safeguards to secure Americans’ invest- torials they have been referred to that Enron and WorldCom debacles, it simply ments, pensions, and retirement sav- way for the past several days. Despite does not make sense to limit or preempt the ings. a string of business failures, our Presi- state’s ability to bring enforcement actions Chairman SARBANES has introduced dent always seemed to land on his feet against analysts who lie to Nevada investors. important legislation that will create a and seemed to profit. The public is looking for elected officials to strong, independent oversight board to Now there are disturbing indicators help them regain their confidence in cor- oversee the conduct of auditors of pub- that he has played fast and loose with porate America. As Nevada’s Secretary of State, I have a lic companies, and he has done this on some of the rules that he is now being duty to protect our state’s investors. Any a bipartisan basis. That bill was re- asked, through his administration, to measure that dilutes my authority as the ported out of committee, as I recall, by enforce. When asked about his business state’s chief securities regulator is counter a vote of 17 to 4, with overwhelming bi- dealings, the President has not accept- to the mission of my office and to state secu- partisan support. ed personal responsibility, instead rities regulators nationwide. Accordingly, I This legislation would establish shifting blame to accountants and law- again urge you to vote against any amend- guidelines and procedures to assure yers or implying that he was just doing ment to S. 2673 that would weaken the en- that auditors of public companies do business as usual. forcement powers of state securities regu- not engage in activities that could un- I would have to say there are ques- lators. Please call me at (775) 684-5709 if you have dermine the integrity of the audit. It tions not only about the Harken busi- any questions or need additional information ensures greater corporate responsi- ness dealings but about the business Sincerly, bility by setting standards for audit and accounting practices of Halli- DEAN HELLER, committees and for corporate execu- burton, where Vice President CHENEY Secretary of State. tives, but it would, we would hope, im- enriched himself, walking away with Mr. REID. Mr. President, our Nation pose penalties when standards are vio- tens of millions of dollars. is experiencing a crisis in confidence lated. It would establish additional cri- So the problems we have heard go far among the investing public. Americans teria for financial statements and re- beyond Enron and the President’s hear on the news and read in the papers quire enhanced disclosures regarding friend, as he referred to him, ‘‘Kenny every day more and more cases of cor- conflicts of interest. boy,’’ Kenny Lay. They are not limited porate executives bilking employees This legislation also directs the Se- to the handful of companies getting and investors, and of auditors who curities and Exchange Commission to most of the media coverage in recent looked the other way, of boards of di- adopt rules to improve the independ- weeks. Instead, there are fundamental rectors failing to provide the oversight ence or research and disclose potential and systematic problems that have to expected of them, and of well-con- conflicts of interest. It also would pro- be corrected. That is what this legisla- nected investors buying and selling vide a significant boost in funding for tion is all about. stock based on insider information. In- the SEC, the Securities and Exchange I applaud the chairman and the com- vestors do not know who they can Commission, to help it carry out its re- mittee for reporting out this bipartisan trust. sponsibilities in a fashion that would legislation. We have been in a mad rush the last help restore investors’ confidence in I hope, I repeat, that the President many years to make sure that the the markets. will join in supporting this legislation.

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.004 pfrm12 PsN: S08PT1 S6342 CONGRESSIONAL RECORD — SENATE July 8, 2002 We need to make sure that those who Mr. DODD. Mr. President, let me ical and the steps that we take and the serve as corporate executives and on begin my remarks by commending the language we use will in no small meas- boards accept the responsibility of distinguished chairman of the Banking ure contribute to the restoration of their roles when they sign their name Committee. I have said on other occa- confidence, it can just as easily do the on a financial report. The American sions and in other places that for stu- opposite, if we are not careful. This is people need to be able to trust cor- dents of the Congress who wish to find a critical moment in the economic his- porate leaders. a good example of how to prepare a tory of our country. Likewise, the President, and those in committee and ultimately the Cham- The steps taken by those who are in his administration who came to office ber for a moment such as this, a good significant positions to affect the out- from the corporate world, need to show model to use would be the hearings come of the course we are on are going more transparency in letting the conducted by the chairman of the com- to be critically important. American people know how they are mittee on this very question. The second caution I express is that making policy decisions, who has ac- There were 10 hearings—there may we don’t try to also overburden this cess to them, who is influencing them, have been more, certainly 10 full hear- bill to say that this is the only oppor- who is meeting with them. ings—to which were invited virtually tunity for us to deal with every other I joined in an amicus brief with the everyone from across the spectrum on issue affecting corporate business life General Accounting Office to have the this question. This was hardly a set of in America. I am not suggesting the Vice President disclose who he met hearings where we heard from one side. ideas Members will want to bring to with to come up with energy policy We literally invited the best experts in the table are bad. But we can so load that this administration enumerated. the country; they came and shared down a good bill that we can sink this We need to know with whom he met, with us their views and thoughts on effort if we are not careful. I urge my when he met with them, and why he what sort of steps we should be taking colleagues as well to be restrained in met with them. They refused to give us to reform the accounting profession, to the temptation to bring up every other that information. That is why I joined reform the rules affecting the account- idea and incorporate it as part of an ac- in that litigation. ing profession. counting reform proposal. Those are This administration must set aside I begin by extending my compliments the two cautionary notes I have. what I believe and agree with some— to the chairman and his staff for the Let me also add my voice to those again, it is replete in the editorials of tremendous job done to lay the ground- who have expressed theirs earlier the last few days—is their arrogance work. Oftentimes we will see, particu- today. Tomorrow I know the President of the United States is going to give a and secrecy and instead be open and larly in light of a crisis that occurs, very important speech on Wall Street forthcoming public servants. there is a rush to judgment. We will in New York, the financial capital of This legislation is timely. The Bank- come very quickly to the floor with a our country. I commend him for doing ing Committee jumped right on it. sort of a cut-and-paste job with the leg- so. I think it is extremely important Most of us thought the Enron thing islation. I am not suggesting inten- that he actually go to Wall Street to was something that was a rare dealing tions are not good, but that is often- in corporate America. We have come to share his views. times how we react. My hope would be that this evening, find out it is not a rare dealing in cor- This set of hearings did, very delib- as he makes the final preparations for porate America. It has happened since erately, with a great deal of patience his remarks, he would come out four then time and time again. We have and thought, lay out the foundation for square and endorse this proposal that only seen the beginning of it, I am the legislation now before the Senate. we have brought out of our committee Certainly, while there will be ideas sure. by a vote of 17 to 4. I can’t think of The Banking Committee is to be ap- offered to improve the legislation, we anything more the President could do plauded for moving this legislation for- think the committee has produced a in the next 24 hours, aside from the ward on a bipartisan basis. By a vote of very fine product. The best evidence of rhetoric he will offer, than to endorse 17 to 4, it was reported out of com- that is the fact that 17 of us in the this bill and to say this was a good ef- mittee. I would hope we can get this committee found this proposal to be fort and to talk about the laborious bill out of the Senate as quickly as pos- worthy of our support. There were four hearings we have held to learn exactly sible. It is good legislation. It is legis- dissenters. I think even among dis- what was necessary to incorporate in lation that the American people need senters, there was a sense that we were this legislation. to reestablish confidence in corporate heading in the right direction. Some Lastly, I would hope we would get America and those people they rely on may have fundamentally disagreed, but this bill done fairly soon and not let so that they feel better about having if there were one in the four, I don’t this go on too long. We would love to their pensions supplemented with in- know which one it would have been. be able to not only finish our work vestments made in the stock market. Most thought we were doing the right here but to go to conference with the The stock market is an indication, as thing, either that we went a little too House, which has another proposal. It far as I am concerned, of how people far or didn’t go far enough possibly, is a weaker proposal, in my view, but feel about what is going on in business. but this is a very balanced approach. nonetheless we will have to work with As we know from recent days, people I urge our colleagues to be careful of them to resolve our differences and to have not felt very good about it. We two potential actions in the coming send a bill to the President for his sig- have had tremendous losses. I heard days. One would be to dilute this prod- nature. the chairman of the committee, Sen- uct in some way. We are not suggesting I would hope that before we leave for ator SARBANES, speak about the Nasdaq we have written perfection here, but we our August break less than 3 weeks losing some 74 percent of its value. think this is a well-balanced proposal. from today we would actually be able That is a significant loss to our coun- Senator SARBANES has worked close- to give to the President a bill for his try. ly with our colleague from Wyoming, signature and not let it drag on over I know the Members of the Senate Senator ENZI, who is the only Member into September and October. It is im- understand the importance of this leg- of this body who is actually a former portant we act in a timely fashion. islation. I hope that they understand member of the accounting profession. With those background thoughts, I why it is important to move it as He brings a wealth of personal knowl- would like to share some general com- quickly as possible. We have a few edge and awareness to the issue. He ments about the bill itself. The impor- short weeks to complete lots of ex- worked very closely with him and tance of this issue cannot be over- tremely important legislation prior to other members of the minority, as well stated. Anyone who has read a paper or the August recess. As I have said on as with those of us on the majority turned on the news or flipped on their four separate occasions, this legisla- side, to finally bring this product to computer is aware of the crisis in our tion is as important as anything we the Chamber. It already has involved financial markets and, in fact, beyond could do, and it is very timely. some compromise. that, in our Nation. No rule or regula- The PRESIDING OFFICER. The Sen- At this hour, when investor con- tion is enough to address this funda- ator from Connecticut. fidence is going to be absolutely crit- mental problem.

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.038 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6343 The issue causing all of this turmoil with Enron but, far more important, It also addresses the revolving door is about the simple word of ‘‘trust.’’ what Congress can do to prevent future through which executives from one The question that the world is asking Enrons from occurring in the days firm leave to work for the companies is not whether our companies or cor- ahead. they audit. porations or the workers who toil in On March 8 of this year, Senator JON This reform legislation includes the them or the products and services are CORZINE and I introduced legislation, S. creation of an independent body to competitive, but simply whether we 2004, that addressed what we thought oversee the accounting profession, with are telling the truth. Are we telling the were some of the tough issues on im- substantial authority to ensure auditor truth? proving regulatory oversight of the ac- discipline and improve audit quality. The reason people of the world so counting profession and restoring in- The Securities and Exchange Commis- often have come here and invested vestor confidence. I worked closely sion will also be given the resources to their hard-earned resources is not be- with the chairman, as did Senator hire more accounting ‘‘cops’’ to handle cause there is a better deal to be made CORZINE, to incorporate some of the increasingly complex oversight respon- financially speaking. It is because language and spirit of S. 2004 in the sibilities and improve the agency’s in- there is a sense that our structures are legislation before us today. vestigative and disciplinary capabili- sound, transparent, and they are fair. I thank the chairman for including in ties. The Government must be able to You may end up losing your invest- the product before us much of what we assure the public that audits meet the ment; you may make money on your wrote in S. 2004. I thank his staff, and high standards of independence and ob- investment. That is always a risk when I also thank my colleague from Wyo- jectivity that have been the hallmark you make a financial investment. But ming. of America’s accounting profession. the one thing you could always say Congress must act quickly. If noth- The accounting profession is a great about the United States, as opposed to ing else, we must address the most profession. There are thousands of almost any other place around the prominent cause of the recent cor- highly qualified, talented, ethical peo- globe, is that when you come to Amer- porate scandals, the practices inherent ple in the accounting profession. I feel ica and invest your money, there is a and common to the accounting profes- for them at this hour. Because of the sense of fairness and trust and sound- sion, and particularly the ability to malfeasance and fraud committed by ness to our financial institutions and audit a company’s books while simul- some, the many who work in this pro- the structures that we created to pro- taneously providing other services to fession feel tainted by it. I regret that. tect them. that same corporation. We saw this The best way I know to recover the That trust has been fractured by the with Enron and Andersen. Now we see confidence people have in this profes- events that have occurred over the last it with WorldCom and the pending in- sion is to provide some regulatory 9 months, And it continues to be frac- vestigations that have greatly contrib- framework that would allow for audi- tured with daily reports. So it is vi- uted to the public’s loss of confidence tor independence and for profes- tally important that we respond in an in our financial marketplace. sionalism to be restored at a time when Since the beginning of the year, appropriate and thoughtful manner as it has been so badly damaged. while our economy has been rebound- the Congress of the United States. We Investors are depending upon us to ing from last year’s economic down- have done so, in my view, with the pro- act on this issue and set aside partisan turn and most economic indicators posal the chairman has brought to our conflicts. As I said, we should not di- point to a bull market, the Nasdaq is attention. The very integrity of our lute this legislation and make it far down more than 20 percent, the Dow is markets is being questioned, and the less important, less meaningful, or down more than 3 percent, and trading Congress must respond cautiously, pru- overburden it by trying to add too volume has declined. One reason may dently, and also expeditiously. much to the bill. It is not an easy path Enron’s collapse in December was, of be investor skepticism that companies to walk down. I urge my colleagues to course, an enormous shock to all of us. are not as financially healthy as they listen to those of us who worked on Seven or eight months later, we have have said they were. More restate- this bill, particularly the chairman, as seen that Enron was not an isolated in- ments on corporate earnings have been we try to balance the particular needs cident. There have been a whole host of filed in the past 7 months than in the of our members and the desire to come corporate accounting scandals and col- last 10 years combined. Most of these up with a good, competent, bipartisan lapses—names such as WorldCom, restatements dramatically downgrade piece of legislation. This is not an easy Global Crossing, Tyco, Adelphia, the the financial health of the companies path to walk down, but it is critically list goes on and on. I fear, as my col- in question. important if we are going to contribute leagues do, that the latest corporate Not surprisingly, the public is quick- to the restoration of investor con- accounting scandal with WorldCom ly losing trust in disclosed corporate fi- fidence as part of our responsibilities will not be the last. I hope it will be, nancial information. Although the in- as members of this historic Chamber. but my fear is it will not be. vesting public may be reacting to the The Congress should address the crit- bad behavior of a few, the possibility of The purpose of the original securities ical issue of accounting reforms as conflicts of interest between account- laws of the 1930s was to increase public quickly as we can. America’s financial ing firms and the companies they audit trust in America’s financial markets, engine does not need a tuneup, it needs creates a perception that this aggres- the reliability of disclosed corporate fi- an overhaul. We must disassemble it in sive accounting is commonplace, even nancial information. The resulting some ways, examine every nut, bolt, when it may not be. This perception, openness and accuracy of corporate dis- and working part, and reassemble it to which takes on its own sense of reality, closures to the investing public paved reflect the days in which we live. has led to a very dangerous, least-com- the very way for America’s rise as the The fact is, if we fail to act on seri- mon-denominator thinking in which unrivaled economic superpower that we ous reforms, America will see a con- the estimated worth of all public com- had achieved. The collapses of Enron, tinuation of the dangerous and discred- panies may become undervalued be- WorldCom, and other corporations, and ited corporate accounting practices cause some are proven to be seriously the accounting scandals have ended that have, in the past 7 months alone, overvalued. any question about whether these laws cost American shareholders and work- The fact is, a few key reforms in- need reexamination. They do. We know ers billions of dollars in their savings cluded in this bill can go a very long that reforms are mostly needed to pro- and pensions. This has deeply shaken way toward shoring up the public’s tect and strengthen the public trust in investor confidence, and that serves as confidence in the integrity of Amer- America’s financial markets, and the a cornerstone of our economic system. ica’s financial marketplace. time to enact them is now. I am con- It is important to note that in the Most importantly, to enhance audi- fident and hopeful that we will do just dozens of hearings surrounding Enron’s tor independence, the legislation re- that in the ensuing days. collapse, no committee has engaged in stricts the ability of accounting firms I yield the floor. a more nonpartisan examination, fo- to audit a company’s books while si- The PRESIDING OFFICER. The Sen- cused not just on what went wrong multaneously providing other services. ator from Maryland is recognized.

VerDate 11-MAY-2000 04:26 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.042 pfrm12 PsN: S08PT1 S6344 CONGRESSIONAL RECORD — SENATE July 8, 2002 Mr. SARBANES. Mr. President, I can strengthen it. I listened with some management of Enron made fortunes thank the very able Senator from Con- attention in the last hour or so as I on the sale of Enron stock, from 1998 to necticut for his kind remarks about presided in the Senate to the sugges- the present, at the same time that they our work together on the committee as tion that we ought not change it much. were driving their company into the we tried to move this legislation for- I do not disagree with that assessment, ground. ward. I particularly want to underscore but we ought to change it some, in my Contrast this with a call I received the very substantial and significant judgment. There are some areas we can from a fellow in North Dakota one day contribution that the Senator from strengthen, and I hope we can who said: I worked for Enron for a good Connecticut and his colleague from strengthen this legislation and send it number of years. I had a retirement New Jersey, Senator CORZINE, made on to the President and have the expec- plan, and all my retirement plan was in when they came forward fairly early on tation the President will sign it. Enron stock. Mr. Lay and others rein the process with S. 2004. This Chamber has long been the site peatedly encouraged us to do that. My Much of that legislation is included of debates about excesses and abuses, retirement plan was in Enron stock. It in this legislation, and it was a seminal especially in America’s poverty pro- was worth $330,000. Now it is worth contribution early on in our consider- grams. We have heard over a couple of $1,700. He said: That is what happened ation and it helped us to move ahead. I decades, and appropriately so, anec- to my life savings—$330,000 to $1,700. am grateful to him for that and for his dotal stories about the Cadillac welfare What happened to the folks at the efforts and support throughout this queen who spends food stamp money to top of the ladder in Enron? Mr. Lay, process as we have tried to move this buy cigarettes. Congress has clamped the chairman of Enron, from 1998 to legislation forward. down on all of that and said: Shame on the present, sold $101 million worth of The Senator from Connecticut, of you, you cannot do that, that is abus- stock. That is what he received. Mr. course, is a chairman of one of our sub- ing the public trust. And it is. So we Rice, $72.7 million; Mr. Skilling, $66.9 committees and has been enormously have taken aggressive action as we million; Mr. Fastow, $30 million. effective within the committee in his have seen these abuses. Mr. Fastow was able to have an eq- efforts on this legislation, and I appre- Today this discussion is not about uity role in the special purpose entities, the off-the-books partnerships, ciate that. I am very hopeful that we the abuse of the poverty program or and in one of them he actually invested are going to get a good product at the the abuse at the bottom, this is about $25,000 of his own money. He invested end of the path—of course, we are not fraud in the boardroom; it is about $25,000, and 2 months later paid himself there yet—which the President will abuse at the top. It is important for all $4.5 million. I do not know anybody sign and which will make a substantial of us to understand that accountability who gets returns like that anywhere in difference. and responsibility do not just apply to poor people in this country, account- America, except by cheating. It is a tragedy, in a sense. The found- In the year 2001 in American corpora- ability and responsibility apply to ever of the accounting firm Arthur An- tions, the average pay for top CEOs in- eryone, and that includes the people at dersen was a man of great rectitude creased by 7 percent, despite falling the top of the corporate structure. and very high principles. He had the profits and stock values. Is there a re- I wish to talk about fraud in the slogan ‘‘think straight and talk lationship at the top between people boardroom, about deceiving investors, straight’’ to guide him. who run the companies and the per- about cooking the books, about ac- His successor, Leonard Spacek, also formance of the companies themselves? counting firms that cannot account, was a man of very high principle. For It does not look like it, does it? that company with those origins, in about law firms that turn a blind eye. In 1981, the average executive com- that tradition, to in effect have happen I wish to talk about the situations the pensation of the top 10 highest paid what has happened to it is a tragedy, country has seen in recent weeks and CEOs was $3.5 million. In the year 2001, there is no question about it. months that we have not seen for many the average was $155 million. So we can We are anxious to reassure account- decades in this country. see what has happened in this country ants all across the country that we The victims, of course, are the people at the top in the boardroom. think this legislation will help bring in this country who have invested in Let’s look at the number of times the profession back to the standards stocks, who believed in the certifi- that CEO pay exceeds average worker that marked it at an earlier time and cation of financial statements by some pay: In 1980, they made 42 times the which standards more thoughtful and of the biggest accounting firms in the pay of the average worker in the com- more responsible members hope will country that these were good corpora- pany. In 1990, they made 85 times the mark it once again. tions, that they had good income, that pay of the average worker in the com- The point the Senator from Con- they were moving in the right direc- pany. But in the year 2000, it was 531 necticut made in that regard is an in- tion, taking steps so that the funds in times. So forty-twofold to five hundred teresting and important one. corporations were accounted for prop- and thirty-onefold. That is what has Mr. DODD. I thank the chairman. erly. And now we discover that was not happened to executive compensation at Mr. SARBANES. Mr. President, I necessarily the case in all too many in- the top of the corporate ladder. suggest the absence of a quorum. stances. We have seen story after story about The PRESIDING OFFICER. The Of course, there are a lot of wonder- what is happening in some of the clerk will call the roll. ful corporations in this country, won- boardrooms. There are a lot of wonder- The assistant legislative clerk pro- derful companies with terrific top exec- ful companies, and I do not think this ceeded to call the roll. utive officers who do the right thing, ought to tarnish all American corpora- Mr. DORGAN. Mr. President, I ask always do the right thing. Yes, they tions, but we ought to be very con- unanimous consent that the order for take some risks, but they do it in an- cerned about what is happening inside the quorum call be rescinded. ticipation of gain for the stockholders. some publicly traded corporations and The PRESIDING OFFICER (Mr. We ought not tarnish with the same why the safeguards have not been able DODD). Without objection, it is so or- brush all American corporations, but to provide early warning to investors dered. The Senator from North Dakota. we ought to determine what is hap- and others. Mr. DORGAN. Mr. President, I begin pening within some of these corpora- Adelphia: The drop in their stock by saying the Senator from Maryland tions that has caused the collapse and value is 99 percent. The question is has done this Senate and this country the devastation of a lifetime of savings whether it failed to properly disclose a great service, along with his col- for many Americans. $3.1 billion in loans and guarantees to leagues, including the Presiding Offi- Let me use Enron as an example. We the family of the founder. cer, by writing legislation that ad- spent a fair amount of time with Enron Dynegy: Whether the Project Alpha dresses a critically important topic at hearings in the Commerce Committee. transactions served primarily to cut a very important time in this country. We had top executives of that company taxes and artificially increase As much as I appreciate the work who had been cashing out prior to cashflow, 67 percent of their value lost. done on this bill, I would still like to Enron going bankrupt. I have a chart Enron lost 99.8 percent of its value. speak about a few ways in which we that shows the way in which the top In fact, as I have mentioned before, the

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.046 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6345 Enron board of directors commissioned who became greedy, officers of the cor- and then pretty much it is ‘‘Katy bar a report called the Powers Report poration who did not pay much atten- the door,’’ and things get out of hand. which looked at only three partner- tion, who also, incidentally, were mak- Then we see other games in which it is ships, and they described what was ing a great deal of money selling stock, quite clear they are going to call up happening inside this company was board members selling stock. It all be- close, and nothing gets out of hand. ‘‘appalling.’’ The board of directors of came a carnival of greed. The same is true with the attitude and the company itself said what was hap- I indicated, after having spent a lot mindset of Federal regulators. We have pening inside the company was appall- of time looking at Enron, that there regulatory agencies for a purpose. That ing. They said that in one year they re- was a culture of corruption inside that purpose is to enforce the rules. Fairly, ported $1 billion of income they did not corporation. The CEO of Enron took yes, but also aggressively. have. great exception to that, but it is clear If someone who comes from that in- Global Crossing: Whether it sold its every passing day, with more and more dustry and says, I represented all of telecom capacity in a way that artifi- evidence of what happened inside that you, and suggests it will be a kinder cially boosted 2001 cash revenue, 99.8 company, that there was in fact a cul- and gentler place, I wonder whether percent loss in value. ture of corruption. that is the regulator we ought to have. Halliburton: Whether it improperly How do we respond to that, and how No matter who is heading the SEC, I recorded revenue from cost overruns on do we deal with that? I think that, first want that person to be a fierce advo- big construction jobs. of all, the rules have to be changed cate on behalf of the rules that protect The list, of course, goes on. some, and that is what this legislation investors. I want someone that can Qwest: Whether it inflated revenue attempts to do. Second, even if there make this system work and require ev- for 2000 and 2001 through capacity are changes in the rules, there must be eryone to own up to their responsibil- swaps and equipment sales. an effective referee, a regulator. In this ities. So people who never enter a cor- On the weekend talk shows, I heard a system of ours, we have to have effec- porate office or know nothing about a panel discussion about this, and one of tive regulation. And frankly, that has corporation but who want to invest in the panelists who is kind of an acad- been lacking. American business, can buy a share of emician said the market is just adjust- Mr. Pitt, who is the head of the SEC, stock, having never met an officer of ing. That is an antiseptic way, by an I know has taken great exception to the company, having never visited the economist I suppose, to ignore the fact statements that have been made by my company, and can have confidence that that families are losing their life sav- colleagues and myself. But the fact is what the accounting firm has said ings. that a system like this cannot work about that company, what the finan- Sure, the market is adjusting, but it unless there is effective oversight and cial statements represent about that means families are losing everything regulation, and that has been lacking. company, are absolutely fair and accu- they have. It means investors with Consider some of the statements that rate. 401(k)s see that 401(k) shrink so their Mr. Pitt has made. This is Mr. Pitt That is the only way in which the life savings are disappearing right be- speaking at the AICPA, which rep- American people can participate in the fore their eyes. resents the accounting industry: raising of capital for America’s busi- The question with all of these issues For the past two decades, I have been priv- ness. If we do not do that and do that is: What has changed? Why, with big ileged to represent this fine organization and quickly, we undermine the entire sys- accounting firms taking a look at what each of the big five accounting firms that are tem by which we raise capital in this is going on—and today there is a hear- among its members. Somewhere along the country. We undermine the entire sys- ing on WorldCom in the House of Rep- way, accountants became afraid to talk to tem. That is why this piece of legisla- resentatives—why, with big accounting the SEC. Those days are ended. tion is important and timely. firms looking over their shoulder, has That was to the American Institute There are several amendments I this sort of thing occurred? of Certified Public Accountants. would like to have considered, some I With Arthur Andersen and Enron, Then Mr. Pitt, who is, again, the hope will be accepted, and some, per- they had a $25 million relationship by head of the SEC, said: haps, we will discuss at some length, which Arthur Andersen audited the The agency I am privileged to lead has not, and I may or may not prevail. There Enron Corporation, and Arthur Ander- of late, always been a kinder and gentler are some amendments that can sen was also paid $27 million by the place for accountants; and the audit profes- strengthen and improve this legisla- Enron Corporation for consulting serv- sion, in turn, has not always had nice things tion. ices. That is one of the things that is to say about it. One of the provisions in the legisla- at the root of this bill: Is that not a So Mr. Pitt was concerned about en- tion calls for CEOs to return profits clear conflict of interest? Is there not suring a ‘‘kinder and gentler’’ SEC. and bonuses they wrongfully reaped in enormous pressure on the accounting The New York Times did a story as a the 12 months following a published firm then to become an enabler for result of the initial speeches Mr. Pitt earnings report that require a restate- that corporation? The answer clearly is gave when coming to the SEC. It noted ment. I would propose that this provi- yes, and that is why this legislation that Pitt ‘‘spoke favorably of pro sion apply when a company goes bank- takes action to deal with some of those forma earnings reports in ways that no rupt, as well. This idea has been en- issues. doubt heartened accountants who have dorsed by former SEC Chairman Rich- I was driving in the car over the worked so hard to find ways to make ard Breeden, Goldman Sach CEO Henry weekend in North Dakota and saw that even the worst profit figures look pret- Paulson, and others. the Xerox Corporation had a substan- ty.’’ There also ought to be some provi- tial restatement of earnings. It indi- It also noted that ‘‘A major embar- sion with respect to loans to CEOs by cated that the SEC had previously rassment for accountants is having the corporate boards of directors. I don’t taken a look at it and fined Xerox $10 SEC force a client to restate its num- know what that limit ought to be, but million, which seems to me like pretty bers. Mr. Pitt and his chief accountant, I mentioned one corporation where much a slap on the wrist when you con- Robert Herdman, are sending signals over $3 billion was loaned to one family sider the billions of dollars involved in that fewer such demands will be of the founder. This is a publicly traded the restatement. Then we hear this big made.’’ corporation. I believe we ought to dis- story this weekend about yet another We can change the law, but if we do cuss that. restatement. So what we have is a re- not have a tough, no-nonsense regu- I may offer a provision dealing with statement, and then a restatement of lator, then it will not work. something called inversion, a mecha- the restatement of earnings. We all watch basketball games, and nism whereby some American corpora- What is the cause of all of this, and we see referees. They are the ones who tions have decided they want to re- what is enabling it? With Enron, for ex- enforce the rules in basketball. We see nounce their American citizenship and ample, it was an accounting firm that a game from time to time where it is move their official headquarters to an- became an enabler; it was a law firm quite clear right at the start the ref- other country—Bermuda, for example. that became an enabler; it was CEOs erees are not going to call them close, I want to be certain that CEOs of such

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.049 pfrm12 PsN: S08PT1 S6346 CONGRESSIONAL RECORD — SENATE July 8, 2002 companies cannot escape the require- be able to testify, and I was going to micks, and inadequate auditing, they ment of this bill that they certify the therefore have to share my testimony have lost significantly the investments accuracy of their financial statements. with the entire body. However, I have they planned for education or retire- I do not think that, in addition to now been advised by the chairman of ment—for their families. avoiding their fair share of U.S. taxes, the committee I will have an oppor- As far as we know, overall the over- these companies ought to be held to a tunity to testify, so I will save my whelming majority of publicly traded lesser standard of reporting accuracy comments for the committee hearing. companies are in full compliance with than U.S.-based firms. So I will offer an I thank the chairman for giving me corporate accounting standards. But amendment, if needed, and visit with that opportunity. the fact that there has been a signifi- the chairman and the ranking member Mr. DORGAN. Will the Senator cant deception by a handful of compa- about that subject. yield? nies raises suspicions of all companies. Another issue, one requiring discipli- Mr. BOND. I am happy to yield. In addition, we don’t know how many nary proceedings to be open to the pub- Mr. DORGAN. Let me explain to the others will come forward in coming lic was discussed in committee. Trans- Senator what my hope was. The Sen- weeks. parency and having those hearings ator asked to testify, quite properly. We must restore the public’s con- open to the public are important. I The Missouri River manual issue is a fidence in the market. Without this, hope we can consider an amendment on highly controversial issue. The Senator the economic recovery which should be that. has been involved with it for some long beginning will remain elusive. The other issue that was discussed in while. We are having a hearings. The While much of the focus in the debate the committee at great length: What is Corps of Engineers and many others here and in the news media is on the the definition of the division of respon- are testifying. My hope had been we auditing problems of the big conglom- sibilities between auditing and con- could hold a hearing with all of those erate companies, unfortunately little sulting? That definition, determined by groups, then have a separate meeting, attention has been paid in this bill to the SEC or the Congress, is critical to hearing from all Members of Congress how the impact will fall on small publicly traded companies and small au- determining whether there is a con- who want to testify. It appears that diting firms. As the ranking member flict. that will not be the case. Having said all that, let me say to We will hear from Senators at the on the Committee on Small Business the Senator from Maryland, we are in front end of that hearing. I assume it and Entrepreneurship, I have some concerns, after reviewing this bill, that we the Senate the first week after the will take some time. As the Senator may be pushing ahead without consid- Fourth of July. I listened to the Sen- from Missouri knows, having indicated, ering the serious effect and the unin- ators from Texas and Wyoming and yes, we would entertain his testimony, tended consequences the bill could Connecticut and others speak about there are a number of other Senators have on smaller firms—both small au- this bill. This is a good start. If this who have already gotten in line saying, diting firms and small publicly traded legislation passed without one word if that is the case, please hear my statement, as well. Of course we will. companies. changed, it would make a magnificent The bill is clearly targeted towards It was never a case where we would contribution to a problem we face, a abuses in extremely large businesses, not hear testimony. The question was gripping problem in this country. which we all think should be dealt whether we would have a separate Having said that, I do not subscribe with. I personally hope it will result in hearing and hear Members of the Sen- to those on the committee who say not prison sentences for people who are ate. I understand the Senator’s con- to change anything. That is not what proven to have committed criminal cern. Senators DASCHLE, JOHNSON, the chairman said. There are some sug- acts in their accounting activities. gestions that will come from other CONRAD, CARNAHAN, and many, many But the SEC is not even aware of how parts of the Senate that can strengthen other Senators have great concerns many small auditing firms there are and improve this legislation, a couple about this issue. auditing small, publicly traded compa- of which I suggested. When it goes to I will lose some sleep Tuesday night nies. There are some 2,500 small compa- conference with the House, we will with great anticipation hearing your nies, and we believe many of them are have something we can be proud of. testimony on Wednesday morning. audited by small- and medium-size au- The most important thing is to show Mr. BOND. I thank my good friend diting firms. For small auditors, the to the investors in this country who from North Dakota and assure him I bill will require many new elements in- have lost, in many cases, their life sav- hope to be brief and to the point. I am cluding registration, annual filing re- ings, that we are taking action to re- somewhat disappointed I will not share quirements, as well as partnership ro- spond to the conditions that caused all that testimony with my colleagues, tation of lead auditors. In addition, the this to happen. but there will be another opportunity. bill would codify a list of banned serv- When we talk about the people at the I thank the chairman of the sub- ices or nonauditing services that an au- top getting rich and the people at the committee for his kind indulgence. diting company might conduct for a bottom losing their life savings, the Today I rise to join in expressing my company that it audits. American people have every right to concern about recent accounting prac- While some of these elements clearly ask: By whose authority can this hap- tices in publicly held companies and are necessary to restore confidence, pen in this kind of economy? It cannot their auditors. As a former State audi- and I think are going to be dealt with happen if the rules are fair. It cannot tor, I have an interest in that profes- by regulatory action and maybe even happen if the rules are enforced. sion being performed properly. Obvi- by the industry itself, no one knows The American people have a right to ously, something is seriously broken. how these requirements will affect the expect the regulators, the SEC, and the We hear about Enron, Global Crossing, small firms. It has been argued that Congress to take action now to address WorldCom, and Arthur Andersen. The the bill allows for a case-by-case ex- these issues. people of America are very concerned. emption, but that exemption process I yield the floor. We have seen millions of families with itself could be extremely costly and The PRESIDING OFFICER (Mr. their investments diminished or even untimely for small firms and lead to WELLSTONE). The Senator from Mis- wiped out. That is not acceptable. The inconsistent results. souri is recognized. vast majority of investments were not I fear that some of these small audit- Mr. BOND. Mr. President, I initially in the volatile sectors, or not what we ing firms will not have the resources to came to the floor to talk about this bill thought were the volatile sectors of the implement these requirements and will and another issue. The Water and stock market. They were invested in stop auditing services or just go out of Power Subcommittee of the Energy the so-called blue chip companies. The business. The result may be that small, and Natural Resources Committee is families who made those investments publicly traded companies may not be holding a hearing on Wednesday, and I on their strong belief in the integrity able to obtain auditing services at rea- asked to testify about the views of Mis- of our financial markets and account- sonable cost. As a result, the bill might souri on the Missouri River issue. Ini- ing industry now find that because of be setting up a hurdle for small compa- tially, the staff said I was not going to corporate shams, accounting gim- nies to reach the public markets, one

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.051 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6347 that is too expensive and too great to on the stock exchange, where so many ments of Labor, Health and Human overcome. of my constituents in Pennsylvania— Services, and Education, the conferees Clearly, when we deal with the major like tens of millions of Americans, were in agreement that there should be problems we ought not cause signifi- really, and even more—have had their relief for these areas in Pennsylvania cant problems for the smaller, growing savings decimated in their retirement that were surrounded by areas that had entrepreneurial sector of our country. accounts of a variety of sorts. The higher MSA ratings. At the last As for publicly traded companies, the issue that was raised consistently was: minute, word came from the chairman bill also places new requirements for What happens next? of the Appropriations Committee that auditing committees and for corporate I think it is very good that the Sen- there would be an objection to includ- responsibility. Again, many of these ate is now considering legislation to ing language in our conference report may be necessary. However, we need to deal with the fraudulent conduct that because it was not included in either look at how these requirements will af- has plagued so many companies in cor- bill—in the House or in the Senate. fect the small, publicly traded compa- porate America. There is no doubt that That does make it subject to a point of nies. there is a clear-cut conflict of interest order, so we had a discussion. I went to The entrepreneurial spirit of our for an accounting firm to be both an the office of the chairman of the Ap- country is really the envy of the world. adviser and an auditor. An adviser has propriations Committee, Senator People know that entrepreneurship a close relationship with a company— BYRD, and did my best to persuade him works in America. That is where we call it cozy, or intimate, or friendly— to make an exception in this case be- get the new ideas. That is where we get but that is very different from the cause of the extraordinary hardship. the growth. That is where we get the function of an auditor, which ought to Senator BYRD, understandably, de- new services and the products. We be at arm’s length, scrutinizing what clined. should be careful as we adopt reforms the company has done. That kind of a We then talked about bringing the not to put a disproportionate burden on conflict should certainly be prohibited matter forward in the supplemental ap- these companies, dampening the entre- in the future. If the accounting firms propriations bill. I thought it highly preneurial spirit or impeding access to do not have enough understanding of likely that, given the immediate his- the public markets. the ethics, then laws have to be en- tory, we could accomplish this accom- I fully support accounting reform and acted, with very tough penalties to fol- modation, this correction, in this ap- the taking of steps necessary to restore low. When you find companies having propriations bill. The House of Rep- investor confidence in the market. I so much debt off the books, subsidiary resentatives came forward, and the House leadership on the Ways and think we should pass a balanced bill corporations, that is a matter of fraud. Means Committee and the House lead- that will not overburden small firms Fraud is a misrepresentation of a fact ership generally agreed with Congress- and not create additional hurdles that where someone relies to their det- man SHERWOOD, who represents these will impede them from growing. We riment, and that is a crime. When you counties in northeastern Pennsylvania don’t want an incidental consequence have companies putting expenses in, in the House of Representatives, and of this bill to be a monopoly of large say, a capital account that shows bil- also Congressman PHIL ENGLISH, who accounting firms when it comes to cor- lions of dollars in additional income or represents Mercer County, that these porate audits. assets of the corporation, that too is were indeed meritorious—not that I agree with the other speakers that fraud. there were not other counties that had the American public is looking to us A good part of my career has been as similar problems, but these counties for answers. I intend to work to see an assistant DA and then as district at- were meritorious and should have a that the needs of the small businesses, torney. I believe this kind of white-col- publicly traded small companies, and change in the MSA. lar crime is certainly susceptible of de- When the matter reached the Senate small auditing firms are protected. I terrence, providing that standards are floor and I filed an amendment to have am committed, and I think we all are established and penalties are provided a similar result, there was resistance committed, to restoring the public’s for a breach. It is my hope that from because, after all, it was in the House confidence in the markets so families the Senate’s current consideration, bill and it could be taken up in con- can feel safe once again in investing in some very tough legislation will fol- ference. It is custom on a matter that America and in America’s future. low. a colloquy was entered into between I look forward to working with my (Mr. DAYTON assumed the Chair.) Senator BYRD and myself, and Senator colleagues to secure a balanced bill f BYRD said he would give every consid- which will do that without bringing LOW MEDICARE REIMBURSEMENTS eration to it in the conference. unnecessary hardship on the entrepre- It is true that there are other places Mr. SPECTER. Mr. President, for a neurial sector of our economy. in the United States that have prob- I thank my colleague from Wyoming considerable period of time, there have lems, but I believe none is so pressing for the courtesy in allowing me to go been a number of counties in Pennsyl- as what is occurring in these counties ahead. I yield the floor. vania that have been suffering from in Pennsylvania, as is evidenced by the Mr. ENZI. Mr. President, I suggest low Medicare reimbursements, which fact that the leadership in the House of the absence of a quorum. have caused them great disadvantage Representatives—as I say, the Ways The PRESIDING OFFICER. The because their nurses, their medical per- and Means Committee chairman and clerk will call the roll. sonnel, are moving to surrounding the leadership of the House—agreed to The legislative clerk proceeded to areas. I refer specifically to Luzerne these changes. call the roll. County, Lackawanna County, Wyo- A week ago today, on July 1, I visited Mr. SPECTER. Mr. President, during ming County, Lycoming County, Mer- in Wilkes-Barre, PA, at the Gossinger the course of the Fourth of July recess, cer County, and Columbia County in Clinic, with representatives of the hos- I traveled through Pennsylvania hold- northeastern Pennsylvania. Those pitals and went over with them the sit- ing some 16 town meetings, and I found counties are surrounded by MSAs— uation that had occurred and asked many concerns among my constitu- metropolitan statistical areas—in New- that they submit memoranda, which ents: The issue of prescription drugs; port, New York, to the north; in Allen- showed the extreme plight, which I the concern about what is happening town to the southeast; and to the Har- could then share with my colleagues in with respect to Iraq; the issue of ter- risburg MSA to the southwest. the Senate, which I am now doing, and rorism, which confronts the United When these counties are so sur- it will be in the CONGRESSIONAL RECORD States; the concern about what might rounded by—and a similar situation ex- for everyone to see. happen on July 4; concern about the ists in Mercer County, which has high- A memorandum prepared by Bernard suicide bombers from the Palestinians er rates in immediately adjacent C. Rudegeair of the Greater Hazleton terrorizing Israel. areas—there has been a flight of very Health Alliance pointed out the fol- But high on the list of public concern necessary medical personnel. Last lowing: was what has happened with Enron, year, in the conference on the appro- With competing institutions located with- WorldCom, and many other companies priations bill covering the Depart- in a 30- to 60-minute drive from our front

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.053 pfrm12 PsN: S08PT1 S6348 CONGRESSIONAL RECORD — SENATE July 8, 2002 doors—and able to pay up to $4 per hour Scherneck, the president and chief ex- EXHIBIT 1 more to attract staff—the Greater Hazleton ecutive officer and the senior vice POINTS FOR CONFERENCE COMMITTEE ON WAGE Health Alliance has experienced an out- president and chief financial officer INDEX—BERNARD C. RUDEGEHIR, GREATER migration of clinical staff to those areas. HAZLETON HEALTH ALLIANCE In the last 18 months, 52 employees—in- point out the problems in retaining With competing institutions located with- cluding registered nurses, licensed practical registered nurses because of the lower in a 30- to 60-minute drive from our front nurses, pharmacists, radiology technologists MSA which the Wyoming Valley doors—and able to pay up to $4 per hour and physical therapists—have resigned. Health Care System has. CEO Robert Spinelli from more to attract staff—GHHA has experienced Then he goes on to say: an outmigration of clinical staff to those Nearly three-quarters of our inpatient pop- Bloomsburg Hospital wrote to my exec- areas. ulation are Medicare recipients. It is often utive director in Harrisburg, Andrew In the last 18 months, 52 employees—in- difficult for them to find reliable transpor- M. Wallace, dated July 3: cluding registered nurses, licensed practical tation to out-of-town healthcare facilities. The current wage index rates have contrib- nurses, pharmacists, radiology technologists So they are serviced at Greater Ha- uted to three years of deficit income, which and physical therapists—have resigned. More zleton causing these hardships and has resulted in the inability to recruit quali- than half of them cited the opportunity to earn higher wages at other hospitals as the losses. fied staff. The Wayne Memorial Hospital, which reason for their departure. The senior vice president of oper- And though our staff is mobile and may be ations at Geisinger Wyoming Valley is in the Newburgh, NY, area in a letter willing to commute up to an hour for a more Medical Center, Conrad W. Schintz, from director of finance, Michael J. lucrative position, our patient base is not. wrote on July 3 as follows: Clifford, dated July 3 made the same Nearly three-quarters of our inpatient pop- There are 10 vacancies in the support de- point: ulation are Medicare recipients. It is often partments, such as laboratory and radiology. The increase in Medicare payments that difficult for them to find reliable transpor- A significant factor in these vacancies is the would result from this change in MSA to tation to out-of-town healthcare facilities. higher wages and benefits that are paid in Newburgh, New York, would mean approxi- As of July 1st, our malpractice insurance the Philadelphia and New York metropolitan mately $450,000 of additional Medicare reim- increased nearly 50 percent. Staff continues areas that are within a 2.5 hour drive from bursement for Wayne Memorial. to find opportunities elsewhere, driven by our hospital. higher wages and attractive sign-on bonuses. Tyler Memorial Hospital in We have been forced to adjust salaries to Similar concerns were noted by the Tunkhannock, PA, sent a memo- stay competitive. That has had a significant Community Medical Health Care Sys- randum expressing the same basic impact on our bottom line—a $3.2 million tem of Scranton, PA, where Dr. C. point. loss in fiscal year 2000. Richard Hartman, president and CEO, A similar letter has been submitted In this new age of domestic security aware- wrote a detailed memorandum, a part by the Marian Community Hospital by ness, our hospitals have become even more of which is as follows: Chief Financial Officer Thomas L. important fixtures in our communities. In the event of a tragedy or terrorist event (a Community Medical Center Healthcare Heron from Carbondale, PA. nuclear power plant is located just miles System’s exit interviews with employees in- Mr. President, I ask unanimous con- away), our communities would look to our dicate greater opportunities outside the sent that these memoranda and letters hospitals, not only as sources of emergency MSA. all be printed in the RECORD following medical care, but as places of refuge, infor- The hospital currently has 67 open- my statement. mation and comfort. ings, 45 full-time-equivalent positions, The PRESIDING OFFICER. Without Our elderly patients are the ones who need and further noted the problems with objection, it is so ordered. us most. Many of them toiled in the local retaining nurses there. (See exhibit 1.) coal mines and served our country in foreign Similar concerns were expressed in a Mr. SPECTER. These letters set wars. Their strong work ethic and love of memorandum from Mr. William Roe, forth in some detail, Mr. President, country has often led to illness and injury that will plague them for the rest of their vice president of finance for the Moses which I will not take the time to read lives. This is a proud population that we are Taylor Health Care System, pointing now, but the theme is the same. These committed to caring for far into the future. out that ‘‘while 30 percent of all hos- are hospitals in great financial dis- pitals in Pennsylvania had negative tress. These are hospitals which are GEISINGER HEALTH SYSTEM, total margins for the 3-year period be- serving an aging population in north- Wilkes Barre, PA, July 8, 2002. tween 1999 to 2001, nine (9) of the thir- eastern Pennsylvania. Similar cir- Senator ARLEN SPECTER, teen (13) hospitals located in this MSA cumstances exist in Mercer County. Scranton, PA. have had negative total margins.’’ The way to correct this is to make the DEAR SENATOR SPECTER: Thank you very much for your continued work on the Metro- Then the memorandum from Mr. Roe adjustment which is present in the politan Statistical Area (MSA) Amendment goes on to point out the difficulties House bill which can be accomplished Issue. This is a most important topic for the which have occurred as a result of out- by the Senate receding to the House future well-being of hospitals in North- migration of medical personnel. position. eastern Pennsylvania, including Geisinger Similar comments were made by As I say, last year on our conference Wyoming Valley Medical Center. Vice President William J. Schoen of report, we had agreed among the con- There are a number of ways in which Allied Services from Clarks Summit ferees to make the adjustment, and Geisinger Wyoming Valley Medical Center is who points out: then did not proceed in that way be- currently disadvantaged due to our region’s rural designation for Medicare reimburse- Pocono and Allentown area hospitals are cause there was a technical problem ment. recruiting [our] workers by offering more with the provision not having been in- Our area is losing a tremendous amount of generous wage and benefit packages. cluded in either bill. But this year, the health care professional talent to neigh- Of course, that is made possible by leadership of the House of Representa- boring areas with urban classifications and the higher reimbursement because the tives has included these corrections for higher wage and salary structures. RNs R Us MSA area is different. these areas, and now I call upon my advertised in the Wilkes-Barre last week spe- A similar note was offered by Mr. colleagues on the Appropriations Com- cifically to transport nurses to both the Al- James E. May, president and chief ex- mittee to recede and I call upon my lentown and Philadelphia areas. Geisinger Wyoming Valley Medical Center recently ecutive officer of Mercy Health Part- colleagues in the full Senate to ap- lost one registered nurse to the Philadelphia ners who pointed out: prove a conference report which will area and two registered nurses to Sacred The Scranton/Wilkes-Barre/Hazleton MSA include these very important correc- Heart Hospital in Bethlehem for better is surrounded by facilities with significantly tions for these six counties in Pennsyl- wages. higher Medicare reimbursements. vania which perform great service. But Despite our intensive recruitment efforts The balance of his memo, which I because of their being surrounded by over the past 6–12 months, it is obvious that will ask be printed in the RECORD, de- other hospitals with MSAs, metropoli- we cannot recruit nurses from the Allen- tails further the difficulties which his tan statistical areas giving greater re- town/Bethlehem area due to the higher wages offered in that area. hospital system faces. imbursement, they cannot compete Geisinger Wyoming Valley Medical Center The Wyoming Valley Health Care with nurses and other medical per- and other local hospitals have lost numerous System, in a letter dated July 5 from sonnel. nurses over the years to Philadelphia hos- Dr. William Host and Mr. Michael I thank the Chair. I yield the floor. pitals—where the nurses work two, 16 hours

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.057 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6349 weekend shifts, receive full time wages and diac Surgery, Neurosurgery, Neonatal Inten- An increase in uncompensated care being full time benefits. sive Care Program, etc. CMC incurred a $3.1 provided by our hospitals, in particular our Geisinger Wyoming Valley experienced a Million operating loss during Fiscal Year Trauma Center. In addition, access to serv- 47% increase in insurance costs from the pre- 2001 and will be posting another year of oper- ices such as CMC’s trauma services, given vious year ($1.8 to $2.7 million). ating losses this year. CMC’s Net Patient the malpractice crisis, for our community is Uncompensated Care for fiscal year 2002 Service Revenue Per Adjusted Discharge, threatened. CMC has incurred in excess of $5 (annualized May) at Geisinger Wyoming Val- when compared against similar facilities, is Million in uncompensated care year-to-date. ley Medical Center is approximately $2.4 mil- approximately $1,200 per adjusted discharge Employer Health Insurance premium cost lion. This includes charity care, bad debt and less. (Note: CMC’s annual adjusted dis- are increasing in the double digit ranges (Fi- community services. charges approximates 20,000.) With respect to nancing Side of the System) with limited or Reclassification of the MSA would result Medicare reimbursement above, CMC re- no relief to hospitals (Delivery System) as in an approximately $2 million Geisinger ceives significantly less than others pro- providers of care for such cost exigency. Wyoming Valley Medical Center. Such an viding the same services in surrounding The financial market’s performance that improvement to our bottom line would allow MSAs. The need to retain our talent critical its effect on earnings and cash reserves of us to further invest in providing excellent to these highly specialized services cannot the organization directly limiting our abil- be underestimated. health care for the people of Northeastern ity to plan for and reinvest in facilities, etc. Pennsylvania. Once again, thank you for Medicare—Base Rate: CMC’s current Medi- care Base Rate is $3,708; July 1, 1984’s Medi- In closing, thank you for the opportunity your efforts on our behalf. to express my concerns for our delivery sys- Sincerely, care Base Rate was $3,421. Net increase over 18 years to CMC: $287; tem and allowing the expression of the desire CONRAD W. SCHINTZ, that a fair, adequate return be provided to Senior Vice President/Operations. 8.4% change over 18 years. Re: Not kept pace with inflation, wage in- hospitals, specifically here in Northeastern creases, technology etc. A comparison of all Pennsylvania, which have served the resi- COMMUNITY MEDICAL CENTER MSA’s Base Rates (today vs 1984) would dem- dents of Northeastern Pennsylvania with HEALTHCARE SYSTEM, onstrate Northeastern Pennsylvania’s di- quality, cost effective healthcare. The eco- Scranton, PA, July 3, 2002. lemma. In the material attached, you will nomic impact of the healthcare system on Re Wage Index (Medicare), Scranton/Wilkes find a graphical representation of CMC’s Northeastern Pennsylvania is significant. Barre/Hazleton MSA, Financial Condi- Medicare Base Rate vs the Market Basket As you have seen day in and day out, our tion of Hospitals. Increase. A lot has happened in healthcare healthcare delivery system in Northeastern Senator ARLEN SPECTER, since 1984. Pennsylvania is undergoing rapid change and Hart Senate Office Building, In addition, the uncertainty surrounding challenges. As such, time is of the essence Washington, DC. the further regulations (HIPAA) effects of within this marketplace. I look forward to DEAR SENATOR SPECTER: I want to thank the new Outpatient Prospective Payment your support and successful outcome in the you for your commitment expressed July 1, System and proposed less than Market Bas- Conference Committee. Feel free to contact 2002 and your efforts on behalf of the hos- ket increases for FY 2003 make this initia- me should you require further information. pitals in the Scranton/Wilkes Barre/Hazleton tive critical for NEPA. Sincerely, I am disappointed to learn that without MSA relative to rectifying the Medicare C. RICHARD HARTMAN, Wage Index issue. As requested, and knowing this ‘‘area adjustment’’, based on the Pre- President/CEO. of your active interest and efforts in at- liminary regulations (Federal Resister Vol. tempting to find solutions to restoring the 67, No. 90) and despite the collective efforts MOSES TAYLOR financial viability to the hospitals of North- of the fiscal intermediary, and the hospitals in the Scranton/Wilkes Barre/Hazleton MSA, HEALTHCARE SYSTEM, eastern Pennsylvania, I am writing to you July 8, 2002. on the issue and request your continued as- our Medicare Regional Wage Index, a critical sistance and support. The events of Sep- variable in calculating Medicare reimburse- MEMO tember 11 and bioterrorism threat have rein- ments to provides in projected to not exceed ReMSA Amendment the rural wage index for all of Pennsylvania forced the need to ensure that the healthcare Senator ARLEN SPECTER. delivery system’s infrastructure of North- (.8525). The issues facing Northeastern Pennsyl- Several important factors highlight why eastern Pennsylvania, by virtue of its loca- the thirteen hospitals located in the Wilkes- tion to multiple major metropolitan areas, vania hospitals include: Immediate financial pressures on ‘‘core op- Barre Scranton Hazleton-MSA need relief. remains intact. erations’’, medical malpractice crisis. CMC’s Reports produced by the Pennsylvania Nationally, operating margins of hospitals medical malpractice increase alone on the Health Care Cost Containment Council continue to exceed that of Northeastern primary layer went from $512K to $1.2 Mil- (PCH4) and the American Hospital Associa- Pennsylvania. The Voluntary Hospital Asso- lion on 9/1/01 and our carrier has exited writ- tion indicate that all of the hospitals are ciation’s (VHA) HBS International ing medical professional liability insurance very efficient and effective healthcare insti- benchmarking system is reporting a 3.7% op- in our Commonwealth. In addition, number tutions. Despite that fact this region has suf- erating return nationally and a 2.6% Mid-At- of our physicians (OB) have retired or left fered losses substantially above both the lantic Region for 2001. Pennsylvania con- the state to practice elsewhere (e.g., Neuro- state and national level. tinues to be viewed negatively on Wall surgery) as a result of the increases. We are The Financial Analysis of all Pennsylvania Street, thus placing access to capital in jeop- concerned with what we face I just over 2 Hospitals is a report produced by PHC4. The ardy. Moody’s short term forecast cites risk months (anticipate > 100% increase) in addi- most recent report shows that while thirty and uncertainty arising from the sector. tion to the continued exportation of talent. (30) percent of all hospitals in Pennsylvania Healthcare providers here in Northeastern Labor/Wage pressures as a result of short- had negative total margins for the three Pennsylvania have not received adequate, ages, retention needs, and an industry need year period between 1999–2001, nine (9) of the fair reimbursement under the Medicare Pro- to attract talent. CMC’s exit interviews with thirteen (13) hospitals located in this MSA gram. Our facilities have been and continue employees indicate greater opportunities have had negative total margins. to be penalized for managing the costs of de- outside the MSA. For example, a significant livering healthcare in light of this. The May Every hospital in the MSA has had a nega- number of vacancies exist at CMC. Currently tive operating margin over that period. 2002 release from the Pennsylvania Health CMC has 67 openings (45 FTEs). CMC’s RN Care Cost Containment Council’s Annual Re- These losses are causing a significant reduc- vacancy rate is 18%. Recruitment activity tion in the capital base of the institutions in port on the Financial Health of Pennsylva- from outside the MSA is commonplace. CMC nia’s Hospitals regarding the Fiscal Year this MSA. An MSA where over 45% of the has seen a 15% RN turnover rate. Net Patient Revenues are provided by Medi- 2001 financial performance confirms this. Ac- Dramatic reductions (greater than 2x an- care patients. cording to the report, Pennsylvania’s aver- ticipated) in Medicare reimbursement along age operating margin is 2.1%. Region 6 facili- the delivery continum as a result of the Bal- In the AHA Hospital Statistics guide from ties, which include Northeastern Pennsyl- ance Budget Act (‘‘BBA’’) of 1997 with a par- 2001, the efficiency of the Hospitals in this vania and the majority of Scranton/Wilkes tial return of the excess reduction retrieved MSA is apparent. Barre/Hazleton MSA hospitals, collectively through the Balanced Budget Refinement In terms of the total labor expense per ad- produced an average negative 1.51% oper- Act and BIPA. justed inpatient day, the MSA is 25% below ating margin, the worst in the Common- Managed Care (‘‘cost’’) pressures on oper- the national average and 22% below the state wealth. ating margins through a variety of tech- average. (MSA—$826.92, United States— As requested, I am providing you some spe- niques including the domination of few pay- $1,102.61, Pennsylavania—$1,052.53). cific information relative to Community ers, utilization management, and further re- In terms of total full time equivalent per- Medical Center, Scranton, PA, and my con- imbursement pressures. sonnel compared to volume the MSA also cerns despite CMC’s ability to continue to Soaring pharmaceutical expenditures and compares favorably. The MSA utilizes 15% provide access to vital services to our com- new technological introductions at a rate far less FTE’s than the nation and 12% less than munity as of this date. CMC provides many in advance of appropriate reimbursement the state. (MSA—4.01 fte’s per adjusted occu- tertiary and secondary services including recognition with little supply side pricing pied bed, United States 4.61, Pennsylvania being the Regional Trauma Center, and Car- constraints. 4.52).

VerDate 11-MAY-2000 04:26 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.006 pfrm12 PsN: S08PT1 S6350 CONGRESSIONAL RECORD — SENATE July 8, 2002 This MSA has very efficient, very effective lation in northeastern Pennsylvania. A wage rounding areas make it imperative that this hospitals (see the Hospital Performance re- rate re-classification is a fair way to ‘‘level legislation be passed. port published by PHC4) that are losing sig- the playing field’’ for healthcare providers. Thank you again. I hope this information nificant amounts of money while serving the In 2001, Allied Services provided $2,751,610 will be helpful as you work on our behalf. Medicare population. in charity care/uncompensated care/and gov- Sincerely, In addition to losing significant amounts ernmental subsidy. Services are provided JAMES E. MAY, of capital, the MSA like the nation is under- without regard to patients’ abilities to pay. President and Chief Executive Officer. going a nursing shortage. Every institution This impacts Allied’s financial health. in the MSA has a number of open nursing po- Hopefully, this helps outline some impor- WYOMING VALLEY, HEALTH CARE sitions, especially RN’s. The situation is ex- tant points regarding the wage index issue. SYSTEM, WILKES-BARRE GENERAL acerbated by the fact that most if not all of All of us here thank you for your work on HOSPITAL, the adjacent MSA’s advertise locally for this issue and stand ready to assist in help- Wilkes-Barre, PA, July 5, 2002. nurses. Ads appear on a regular basis from ing you achieve a successful conclusion. Hon. ARLEN SPECTER, Allentown, Philadelphia, Harrisburg, and Sincerely, U.S. Senate, Hart Senate Office Building, Monroe County each extolling the fact that WILLIAM J. SCHOEN, Washington, DC. they can offer higher wages. This has forced Vice President. DEAR SENATOR SPECTER: On behalf of Wyo- the local hospitals to use agency nurses at ming Valley Health Care System, Its Board considerable expense. MERCY HEALTH PARTNERS, of Directors, and the entire Wilkes-Barre/ As I am sure, you are aware CMS recog- Scranton, PA, July 3, 2002. Scranton community, we would like to nizes that there are issues with the data used Hon. ARLEN SPECTER, thank you for the efforts that you, Rep- for the wage index. For one example most if U.S. Senate, Hart Senate Office Building, resentative Sherwood, and your respective not all hospitals in our MSA, employ their Washington, DC. staffs have committed to addressing the dis- own dietary and housekeeping personnel and DEAR SENATOR SPECTER: I want to thank parity caused by the Medicare wage index. provide benefits to these positions. This de- you and Congressman Sherwood for meeting While you certainly have developed an ap- cision actually hurts our wage index number with the representatives of all the hospitals preciation for the challenges facing the hos- as many other areas of the country now con- in Northeastern Pennsylvania on June 1, pitals in our region, we would like to share tract for those services. Quoting from the 2002. Your continual efforts in seeking a res- with you the following points that we believe Federal Register of May 9th page 31433, olution to our Medicare wage index problem, are relevant to our situation: ‘‘Therefore, excluding the costs and hours of and in particular your support of Congress- WVHCS-Hospital (comprised of Wilkes- these services if they are provided under con- man Sherwood’s amendment to the 2002 Sup- Barre General Hospital and Nesbitt memorial Hospital), the largest provider in both tract, while including them if the services plemental Appropriations Bill, is critical for the Scranton/Wilkes-Barre Metropolitan are provided directly by the Hospital, creates the survival of our hospitals. The Scranton/Wilkes-Barre/Hazelton MSA Statistical Area and the Northeastern Penn- an incentive for hospitals to contract for is surrounded by facilities with significantly sylvania region (Region 6) as defined by the these services in order to increase their higher Medicare reimbursement. Our hos- Pennsylvania Health Care Cost Containment hourly wage for wage index purposes.’’ I do pitals have struggled for many years now Council (HC 4), has suffered operating deficits not believe that the Congress intended the with an unfair Medicare reimbursement rate. in each of the fiscal years since the year wage index to drive low hourly rate employ- We at Mercy have continued to lose health ended June 30, 1998. The smallest operating ees off hospital payrolls. professionals to other regions around us. On deficit was $5,542,000 in 1998, and the oper- There are other examples including the a weekly basis our local newspapers carry ating loss for the year just ended is expected amount and type of administrative personnel employment ads recruiting these individuals to exceed $10,000,000. that affect the wage index. ’We believe that from our facilities as well as local colleges In the face of adversity, our Hospital has several of the proposed alterations to the and universities outside our area. An exam- done everything possible to manage the ex- data collection process for the wage index ple of these ads are attached for your review. tent of those losses, including numerous will help to address some of those concerns. Even billboards have sprung up within our staff reductions. The total number of paid However, our MSA cannot wait for these MSA such as the one discussed in the No- full time equivalents (FTE’s) for 1998 was measures to take effect, the wage index cur- vember 11, 2001 Times Leader. I have at- 2,708 FTE’s As of may 31, 2002, that figure rently lags 3 to 4 years behind the current tached this as well to illustrate our point. had dropped to just over 1,809 FTE’s, a reduc- data. Any substantive change will take at Our problem will further deteriorate when tion of almost 900 FTE positions. least 5 to 7 years to make an impact on the the proposed Fiscal Year 2003 wage indexes Medicare beneficiaries account for almost payments to our MSA. We need help now. 2 based on our 1999 fiscal year that we were ⁄3’s of the inpatient days within our Hos- Thank you for your efforts in this regard. published in the May 2002 Federal Register pital. Furthermore, the Medicare payment WILLIAM ROE, are finalized in September 2002. Our MSA has program has become the basis for several Vice President of Finance. once again fallen below the Pennsylvania other payment programs in the Common- rural rate. This has occurred from 1999 wealth of Pennsylvania, including auto in- ALLIED SERVICES, through 2001, a period when employment ex- surance and workers compensation services. Clarks Summit, PA, July 1, 2002. penses have risen 14%. There is no opportunity for a shortfall in Hon. ARLEN SPECTER, This will put even greater pressure on our Medicare payments to be absorbed by other Hart Senate Office Building, institutions which in turn jeopardizes the payers, which had lead to our significant op- Washington, DC. quality of care that our institutions provide erating deficits. SENATOR SPECTER: The following are some to our communities in general and our large Luzerne and Lackawanna counties have information points regarding the wage index Medicare age population in particular. the highest concentration of Medicare bene- and how a re-classification would aid Allied This reduction could not come at a worse ficiaries of all counties throughout the Com- Services: time. Per the most recent Pennsylvania Cost monwealth of Pennsylvania with populations As northeastern Pennsylvania’s largest re- Containment Council Financial Analysis. of 200,000 residents or greater. And, the pro- habilitation medicine provider, Allied expe- Our region, Region 6-Northeastern Pennsyl- portion of Medicare beneficiaries within riences a high volume of patients covered vania, had the worst operating margin of all those counties are among the highest of any under Medicare. This, coupled with a low Pennsylvania Hospitals—1.51% and a total major county throughout the country. wage index rate, impacts Allied’s ability to 4 margin at -0.23%. I have attached this report Based upon data presented by the HC for recruit and retain healthcare workers. Re- for your review as well. the 2001 fiscal year, seven of nine regions classification to the Newburg, NY, MSA These statistics are even more eye-opening within Pennsylvania enjoyed positive oper- would provide over $6 million in additional when you compare them to national aver- ating results ranging from 0.81% (North- funds while re-classification to Allentown ages. The average total margin for hospitals western Pennsylvania) to 3.75% (Lehigh Val- adds over $3 million for use in employee re- across the country is 4.5% based on the lat- ley). Altoona area hospitals experienced a ¥ cruitment/retention programs. est American Hospital Association data in slight operating deficit of 0.27%. Most no- Pocono and Allentown area hospitals are 4 conjunction with the Center for Medicare table in the most recent HC release was the recruiting NEPA workers by offering more Services. fact that hospitals in Northeastern Pennsyl- generous wage and benefit packages. This is In closing, I would like to once again em- vania were faced with operating deficits being promoted through ads in local news- phasize the importance of this legislation averaging ¥1.51% of revenue. papers, on radio stations and on billboards. and its impact on the Mercy Health System. Of the 13 hospitals within our metropolitan This impacts our workers as recruitment for Listed below is our Net Operating Income for statistical area, the four largest providers healthcare workers is extremely difficult. our last three fiscal years and the first five experienced operating deficits ranging be- ¥ ¥ This problem is further exacerbated when months of 2002. tween 2.56% and 4.81%. Five of the re- competing providers recruit away workers FY 1999 ($1,827,000). maining nine hospitals also experienced sig- thanks to their higher wage rate reimburse- FY 2000 ($7,071,000). nificant operating deficits. ments. FY 2001 ($6,001,000). As the largest hospital in Luzerne County, Despite staff shortages, the need to provide May 2002 ($2,582,000). and sponsor of a very active family practice services continues to be high. This is par- These net operating losses couples with residency program, WVHCS-Hospital pro- ticularly so given the large elderly popu- competition in recruitment from sur- vides a significant amount of free care. For

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.009 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6351 the year just ended, it is estimated that The Bloomsburg Hospital. As a community The PRESIDING OFFICER. We are WVHCS-Hospital provided uncompensated hospital located in Northeast Pennsylvania, not. care valued at over $6,000,000. In addition, the current wage index rates have contrib- there were almost 18,000 patient encounters uted to three years of deficit income, which f within our family practice residency pro- has resulted in the inability to recruit quali- MORNING BUSINESS gram, the majority of which were to Medical fied staff. In addition, our hospital has had Assistance or other uninsured/underinsured to furlough individuals and not fill positions Mr. REID. Mr. President, I ask unan- patients who otherwise would have ended up as vacancies become available. imous consent that we now proceed to in emergency rooms. Your help in this wage index change is a period for morning business with Under the current rules, Medicare applies greatly appreciated. Thank you. Senators allowed to speak therein for a the wage index to about 71% of the average I will be available to attend the Conference period not to exceed 5 minutes each. hospital’s non-capital cost pool. Based upon Committee meeting. Please contact me. The PRESIDING OFFICER. Without our calculations, the portion of our costs to objection, it is so ordered. which that index should be applied is esti- WAYNE MEMORIAL HOSPITAL, mated to be far less, approximately 58%. The Honesdale, PA, July 3, 2002. f result is that areas like ours, where the wage Senator ARLEN SPECTER, FOURTH OF JULY DEDICATION OF index is less than 1.00, are paid less than cost Scranton, PA. THE LOVELL VETERANS MEMO- for a portion of their supply expenses. DEAR SENATOR SPECTER: Thank you for For the 2002 fiscal year, we have experi- holding the briefing on the Medicare reim- RIAL CENTER enced registered nurse (RN) staffing turnover bursement issues and the Wage Index issue Mr. ENZI. Mr. President, all of us are approximating 15% of our total RN pool. in particular. We truly appreciate all your just returning from the Fourth of July This is driven by the fact that the average efforts on our behalf to assure that Medicare recess. It is a grand time, I am sure, wage rate which we can afford to offer for a Reimbursements to providers of services are across the United States. It was par- registered nurse is $20.28, well below other adequate. contiguous metropolitan statistical areas. In I am summarizing a few of the issues fac- ticularly a grand time in Wyoming. I addition, the current vacancy rate for cer- ing us in our fiscal 2003, which began on get to go to a lot of parades and fairs tified registered nurse anesthetists is 25%. Monday, July 1, 2002, the same day as your and rodeos. It is really our only time Despite the fact we operate one of the larg- briefing. outdoors to get a little bit of suntan est and most successful schools of nurse an- We are anticipating an increase in our that, unfortunately, goes from the esthetists in the nation, surrounding areas Medicare payment rate of approximately 3% wrist to the tip of the fingers, and the are paying $5 to $6/per hour more than our effective with the beginning of the next fed- neck up. But it is a grand time. I want eral fiscal year on 10–1–02. The increase is region. to share with my colleagues one of the Registered nurses are not the only area of based on a Market Basket increase less .55%, need with which we are faced. For example, as I recall has been the reduction factor over adventures of this Fourth of July re- radiology/imaging technologists are earning the last several years. Medicare is saying cess. (an average hourly rate of $14.88, again, well that, inflation is running 3.55% and we’ll I got to be in a place called Lovell, below other nearby metropolitan statistical give you a 3.00% increase in rates. This WY. It is in the northern part of Wyo- areas). The result is that for the first half of makes it extremely difficult to keep net rev- ming. They had a dedication of a vet- 2002, we have experienced almost 20% turn- enues above expenses when by definition, ex- erans memorial center that features a over in imaging technicians, particularly in penses are increasing faster than revenue or huge mural that includes pictures from rates. Capital costs are included in this same the areas of nuclear medicine, CT scanning, all of the wars in which we have par- magnetic resonance imaging (MRI) and gen- methodology. Wayne Memorial is currently eral radiology services. in a planning process that may well identify ticipated. The mural goes down into a Without additional relief, we are losing the need to spend capital dollars. Medicare rocky beach that contains rocks from staff to surrounding communities! reimbursement will not change as a result of different wars that we have been in as In addition to these labor related pres- this capital project and the proposed in- well. They had a dedication of this vet- sures, we are faced with other issues affect- crease for fiscal 2003 will make it difficult to erans memorial center. ing costs including the malpractice insur- cover additional debt service on any new The dedication was also attended by ance crisis, bioterrorism preparedness, as debt that may be required. Commander Lovell, whose town is now well as, added regulatory requirements under We have also recently absorbed an 80% in- the Health Insurance Portability and Ac- crease in our annual General and Profes- his namesake. That is the Lovell of countability Act (HIPAA). While it is not sional liability (malpractice) insurance pre- Apollo 13 fame and ingenuity. our intention to redirect wage-related reim- mium that must be paid from this 3% in- Of course, it reminded me of that bursements to those areas, the fact remains crease from Medicare. We are facing serious time in 1957 when the United States re- that the amount of funds which we will have physician recruitment issues related to the alized that we were behind in all of the available to address our staffing needs will malpractice crisis here in Pennsylvania, as scientific races. It challenged many of be even further limited. well. The increase in our malpractice pre- us to improve education in the United Once again, we would like to thank you, mium will total over $725,000 on an annual States. I think that continues today. Representative Sherwood, Representative basis. The increase in Medicare payments Kanjorski, Senator Santorum and each of that would result from this change in MSA The United States met that challenge. your respective staffs for all of the efforts to Newburg, New York would mean approxi- I remember when Sputnik went up I which you have put into this important mately $450,000 of additional Medicare reim- was appalled and I immediately because. In particular, we would like to thank bursement for Wayne Memorial. came one of those rocket boys, one who you and Representative Sherwood for spend- I want to thank you again for your hard was anxious to learn as much about ing time with representatives from area hos- work on these serious issues facing science and space as possible. pitals on Monday, July 1, 2002. healthcare providers in Pennsylvania and I am pleased to say the Explorer Post We look forward to hearing from you as to hope that all of our efforts, together, can that I was in launched a rocket with when the conference committee hearings move us toward a Medicare payment system will be scheduled as we would like to be that is more adequate. electronic ignition the second time we present to represent our community and this Sincerely, did it. We also learned on the first one critical issue. MICHAEL J. CLIFFORD, that you have to clear that with the Sincerely, Director of Finance. FAA so you don’t shoot down air- WILLIAM R. HOST, Mr. SPECTER. In the absence of any planes. There have been a lot changes President and Chief other Senator seeking recognition, I in that. Executive Officer. I got to go to this parade and dedica- MICHAEL D. SCHERNECK, suggest the absence of a quorum. Senior Vice President The PRESIDING OFFICER. The tion of the mural. It was very patri- and Chief Financial clerk will call the roll. otic. At the beginning, as they unfurled Officer. The assistant legislative clerk pro- this new flag on a huge new pole, we ceeded to call the roll. did say the Pledge of Allegiance. There THE BLOOMSBURG HOSPITAL, Mr. REID. Mr. President, I ask unan- was a reaction to the previous Wednes- Bloomsburg, PA, July 3, 2002. imous consent that the order for the day’s Ninth Circuit announcement be- Memo to: Andrew M. Wallace, Executive Di- quorum call be rescinded. cause when the words, ‘‘under God’’ rector, Northeast Region. were said, they were louder than the From: Robert J. Spinelli, CEO, The The PRESIDING OFFICER. Without Bloomsburg Hospital, Bloomsburg, PA. objection, it is so ordered. whole rest of the pledge, just as an af- The Medicare Reimbursement issue cur- Mr. REID. Mr. President, are we in a firmation that the people of Wyoming rently debated is extremely important for period of morning business? were upset with the decision that had

VerDate 11-MAY-2000 02:36 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.013 pfrm12 PsN: S08PT1 S6352 CONGRESSIONAL RECORD — SENATE July 8, 2002 been made. But it was that kind of the world of the kind of government wonderful hospitality we received during our event that makes your heart swell and that works, and that has worked better visit—and it is an honor for me to say a few brings tears to your eyes. and longer than any other government. words in the dedication of Veterans Memo- There was a song about heroes sung But it isn’t the Government either. It rial Center honoring the men and women who served in our Armed Forces. by elementary students. It reminded is the people. We have people who have In 1944, Journalist Ernie Pyle wrote these me that community, and communities values, enthusiasm, ideas, and commu- words to describe the beginning of the Nor- across this country, are made up of he- nity. mandy invasion. roes. Heroes are just ordinary people That came out on September 11. On ‘‘Darkness enveloped the whole American who do extraordinary things. Fortu- September 11, there were a lot of peo- armada. Not a pinpoint of light showed from nately, in America we have a lot of ple around the world who were pretty those hundreds of ships as they surged on those. sure there was a major tragedy which through the night toward their destiny, car- We are in a rapidly changing world. rying across the ageless and indifferent sea hit this country and that we would fall tens of thousands of young men, fighting for In April, I had an opportunity to go apart. Instead, what they saw was . . . for, well, at least each other. For Ameri- over to Russia with three interpreters. America coming together. We came to- cans, these words paint a picture of the fear We worked on an international agree- gether with a sense of community and confusion surrounding soldiers on the ment of cooperation on controlling which they didn’t expect, with patriot- eve of battle. Yet, they also impart the sense weapons of mass destruction, on export ism that has been unequalled, I think, of determination those young men must controls. That meeting was a tremen- in our history, with voluntarism, and, have felt. Through his words, Ernie Pyle dous shock for me. All the time I was most of all, faith. Those are the things puts us in touch with our understanding of who we are and how we came to be a nation. growing up, Russia was our enemy—the that make us different from the other Even more, these words impel us to re- Soviet Union where the people were countries. Those are the things that member the cost of bringing America this far out to get us. I was sitting across the have made us great. and also forces us to admit the price is not table from their equivalent of the Sen- It is exciting to have an opportunity yet paid in full. This is what the dedication ate and House talking about coopera- to participate in ceremonies, such as of the Veteran’s Memorial symbolizes—when tion. the Lovell Veterans Memorial Center the people of Lovell can take a clear look at I also had an opportunity to meet dedication. both your past and your future. And acknowledge the debt we owe to those men and with some small businessmen while I I ask unanimous consent that the was over there. I think it was an even women who—because they so cherished speech of MG Ed Boenisch, Adjutant peace—chose to live as warriors. bigger shock for them to be talking to General of the Wyoming Military De- Could anything be more contradictory a capitalist about free enterprise. I partment, given at that dedication be than the lives of our servicemen? They love think we will learn a lot from each printed in the RECORD. America, so they spend long years in foreign other as the world changes. There being no objection, the mate- lands or at sea far from her shores. They re- I have to tell you that the people in rial was ordered to be printed in the vere freedom, so they sacrifice their own that we may be free. They defend our right Russia today have a tremendous RECORD, as follows: amount of respect for us. Part of it to live as individuals, yet yield their individ- DEDICATION—LOVELL VETERANS MEMORIAL uality in that cause. Perhaps most paradox- comes from the action the United CENTER, JUNE 29, 2002 ically of all, they value life, and so bravely States took in Afghanistan. We did in 1 SPEECH BY MAJ GEN ED BOENISCH, ADJUTANT ready themselves to die in the service of our month what Russia wasn’t able to do in GENERAL, WYOMING MILITARY DEPARTMENT country. 7 years. That did get us some respect. I’m honored to be here sharing the podium For more than 220 years our military has The rest of the world anticipates that with an astronaut. I’m proud to be here with provided a bastion against our enemies. In the reason we are able to do things proud civic leaders, citizens and veterans that time, our world has changed and our such as that is the tremendous tech- who make dreams a reality. armed forces have changed with it, but the nology we have, the inventions and Today renews my hope and faith in the valor, dignity, and courage of the men and spirit of America and in our great flag and women in uniform remain the same. From weapons we have developed. Some peo- Valley Forge to Enduring Freedom, from ple think it is because of this cap- the freedoms it represents. This spectacular memorial is a fitting honor to the men and San Juan Hill to Pearl Harbor, the fighting italism, of businesses—and businesses women who sacrificed so we can be here spirit of the American Serviceman per- deserve tremendous applause for the today, free and safe. meates the history of our nation. role they have played. Today is 29 June 2002. It’s been 291 days The founders of the United States under- Since there was a parade that day since terrorists attacked our country. Re- stood that the military would be the ram- and a lot of Tootsie Rolls were thrown member all the innocent civilians who were part from which America would guard its out to the kids along the streets, it re- killed that terrible day. It’s been 265 days freedom. George Washington once stated, ‘‘By keeping up in Peace a well regulated minded me that Tootsie Rolls had been since we began our Global War on Terrorism. Remember the 51 U.S. military men and and disciplined militia, we shall take the a part of every war since World War II. fairest and best method to preserve for a That company has donated Tootsie women who have died in that war. Remem- ber all those who are deployed today, fight- long time to come the happiness, dignity and Rolls. It is one of those chocolates that ing our War on Terrorism so our country and Independence of our country.’’ The prophecy don’t melt in the heat. For Afghani- our world can be safe for our children and of those words has been fulfilled time and stan, they donated eight semis loaded our grandchildren. again. with Tootsie Rolls. But I also heard I am so encouraged when I see the spirit of The cost of that vision has been tremen- about a little event that happened in Americans manifested in displays of patriot- dous, for the periods of peace our country ism, respect and remembrance, especially has enjoyed are few. The longest time of Korea. They used to be able to call in complete tranquility for our armed forces the plane, and the plane would dump with a beautiful and permanent display such as this Lovell Veterans Memorial Center. was the 23 years between World Wars One Tootsie Rolls on little parachutes. But Thank you for having such a grand and and Two. Since the Revolutionary War, more one day, they got a little confused on beautiful dream! Thank you for your finan- than 42 million men and women have served the code word, and when a bombing run cial contributions and hard work to make in America’s military. More than 600,000 of was called in on North Korea, they this a reality. Thank you for remembering! those dauntless, selfless warriors died in used Tootsie Rolls for the code word May God bless you! combat. May God bless America! But why are we so seemingly willing to for it, and the North Koreans had Toot- fight and, if need be, to die? The answer to sie Rolls dropped on them. Mr. ENZI. Mr. President, I ask unani- that question is as simple—and yet as com- We have businesses that participate mous consent that the speech which plex—as the soul of America itself. We fight in all kinds of ways in making sure our Commander Lovell gave at that cere- because we believe. Not that war is good, but country is a better country. But what mony be printed in the RECORD. that sometimes it is necessary. Our soldiers they usually miss in all of the discus- There being no objection, the mate- fight and die not for the glory of war, but for sions about why America is great rial was ordered to be printed in the the prize of freedom. And, the heart of Amer- ica is freedom, for ourselves and all nations doesn’t have to do with technology. It RECORD, as follows: willing to fight for it. Yes, the price is high, doesn’t have to do with capitalism. It DEDICATION OF VETERANS MEMORIAL CENTER, but freedom is a wealth no debt can encum- has to do with the people. As a people, JULY 29, 2002, LOVELL, WYOMING ber. we have developed over the years of our LADIES AND GENTLEMEN: My son Jay and I But, what of the soldiers whose death has existence the promotion to the rest of want to thank the people of Lovell for the brought the liberty of our nation? Soldiers

VerDate 11-MAY-2000 04:14 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\CR\FM\G08JY6.043 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6353 who did not even enjoy the status of veteran? Sullivan Ballou was killed a week completed a joint tour as the Counter- They were all different; yet share a sameness later at the First Battle of Bull Run. narcotics and Maritime Officer, Special that is deeper than the uniform they wore. That is why I am proud to be in Operations Command, Pacific. They were black, white, man, woman, His- Lovell, today to participate in the As Commanding Officer, SBU–22, panic, Indian, Asian, Catholic, Jewish, Captain Green’s leadership firmly es- Protestant, Buddhist, Muslim, and a hundred dedication of the Veteran’s Memorial other variations and combinations. What is honoring the men and women who tablished his unit as the premier facil- most important—regardless of race, creed, served our country. ity to train special operations forces in color, or gender—they were American. Mr. ENZI. Mr. President, I know it the riverine environment. His deter- These courageous men and women, each so was a great day across America when mination and oversight hastened the different in heritage and background, shared we celebrated the Fourth of July. I construction of new state-of-the-art fa- the common bonds of the armed forces—duty cilities that provide for the training in and sacrifice. All of them reached a moment look forward to the future Fourth of July and the daily events when patriot- the maintenance and repair of combat- in their lives when race and religion, creed ant craft, an armory, a supply building, and color made no difference. What remained ism and community and faith are was the essence of America—the fighting shown in our country. a swim training tank, and a detachment building/administrative head- spirit of a proud people. They are servicemen f who paid the price for freedom. quarters, with plans under develop- As we dedicate this memorial to the brave TRIBUTE TO CAPTAIN (SELECT) ment for a land-water range, a 30-unit veterans of the past, we must also look to BENNY G. GREEN, U.S. NAVY housing facility, and a mini Navy Ex- the future. In today’s world, of terrorism Mr. LOTT. Mr. President, I wish to change/gas station. His rapport with freedom comes cloaked in uncertainty. take this opportunity to recognize and senior military leadership was essen- America still relies on her sons and daugh- tial to theater commander exposure to ters to defend her liberty. The cost of inde- say farewell to an outstanding Naval pendence remains high, but we are willing to Officer, Captain Benny Green, upon his SBU–22 capabilities in support of Spe- pay it. We do not pay it gladly, but we pay change of command from Special Boat cial Operations Forces, SOF, through- it with deep reverence and thanks to those Unit Twenty-Two. Throughout his ca- out the world. During his tenure, SBU– who have sacrificed their lives for America. reer, Captain Green has served with 22 hosted two major Joint Combined We know that in the years to come, more distinction. It is my privilege to recog- Exchange for Training, JCET, exer- brave soles will sacrifice their lives for nize his many accomplishments and to cises, executed 13 counter-drug mis- America. We should include them in our commend him for the superb service he sions in South America, and trained thoughts when we view this symbol of free- over 450 foreign military personnel in dom. has provided the Navy, the great State Let me conclude my remarks by reading a of Mississippi, and our Nation. all facets of riverine operations. His re- few excerpts from a letter that exemplifies Captain Green enlisted in the Navy alignment of the Combatant Craft why we honor our people in uniform. It was in September 1972. After an initial tour Training Curriculum fully addresses written by Sullivan Ballou, a Major in the at the Aircraft Intermediate Mainte- the requirements of the Naval Special 2nd Rhode Island volunteers, to his wife nance Department at Barbers Point, Warfare Force–21 initiative and is typ- Sarah a week before the battle of Bull Run. Hawaii, he attended Basic Underwater ical of the exceptional foresight Cap- Dear Sarah: The indications are very tain Green demonstrated throughout strong that we shall move in a few days— Demolition/SEAL Training in Coro- perhaps tomorrow. Lest I should not be able nado, California, and graduated with his tour as Commanding Officer of to write again, I feel impelled to write a few class 83, for further assignment to SBU–22. His vast Special Operations ex- lines that may fall under your eye when I am SEAL Team One. Captain Green re- perience proved to be a major resource no more. Our movements may be of a few ceived a Bachelor of Science Degree in the identification, testing and im- days’ duration and full of pleasure—and it plementation of the new Special Oper- may be one of some conflict and death to me. from the University of Louisville in 1980, and was commissioned an Ensign ations Craft-Riverine, SOC–R, that If it is necessary that I should fall on the promises to revolutionize riverine tac- battlefield for my Country, I am ready. in 1981. He attended flight school at I have no misgivings about, or lack of con- Pensacola Naval Air Station and upon tics and capabilities. Throughout his distinguished career, fidence in the cause in which I am engaged, graduation was assigned to Fighter Captain Green has served the United and my courage does not halt or falter. I Squadron Eleven at Naval Air Station, States Navy and the Nation with pride know how American Civilization now leans Oceana, VA as a Radar Intercept Offi- on the triumph of the Government, and how and excellence. He has been an integral cer. He flew numerous combat missions great a debt we owe to those who went before member of, and contributed greatly to, over Lebanon in response to the 1983 us through the blood and sufferings of the the best-trained, best-equipped, and terrorist bombing attack of the Marine Revolution. And I am willing—perfectly will- best-prepared naval and special oper- ing—to lay down all my joys in this life, to Barracks in Beruit. In February 1985, ations forces in the history of the help maintain this Government, and to pay Captain Green returned to the Special that debt. world. Captain Green’s superb leader- Forces and was assigned to SEAL ship, integrity, and limitless energy Sarah my love for you is deathless, and yet Team Four, in Little Creek, VA, as the my love of Country comes over me like a have had a profound impact on SBU–22 strong wind and burns me unresistably on to Platoon Commander of the newly and will continue to positively impact the battlefield. formed Sixth Platoon. In his next as- the United States Navy, our Special The memories of the blissful moments I signment, Captain Green was a plank Operations Forces, and our Nation. have enjoyed with you come crowding over owner of SEAL Delivery Vehicle Team me, and I feel most gratified to God and to Captain Green relinquishes his com- One Detachment Hawaii, on Ford Is- mand on July 12, 2002 and reports as Di- you that I have enjoyed them so long. And it land, Oahu, HI, where he served as Dry is hard for me to give them up and burn to rector, Concept Development Direc- ashes the hopes of future years, when God Deck Shelter Platoon Commander. torate at Special Operations Command willing, we might still have lived and loved Other operational tours in Naval Spe- Joint Forces Command, in Norfolk, VA together, and seen our sons grown up to hon- cial Warfare include: Dry Deck Shelter where he will continue his successful orable manhood. If I do not return my dear Department Head, SEAL Delivery Ve- career. On behalf of my colleagues on Sarah, never forget how much I love you, hicle Team Two; Operations Officer, both sides of the aisle, I wish Captain and when my last breath escapes me on the SEAL Delivery Vehicle Team Two; Green ‘‘Fair Winds and Following battle field, it will whisper your name. For- Maritime Special Purpose Force Com- give my many faults, and the many pains I Seas.’’ mander for Central Command Amphib- have caused you. How thoughtless and fool- f ish I have often been. ious Ready Group 3–91; Executive Offi- But, O Sarah! If the dead can come back to cer, SEAL Delivery Vehicle Team Two; COLONEL DOUGLAS JOHN WREATH this earth and flit unseen around those they Naval Special Warfare Task Unit Com- OF THE UNITED STATES AIR loved, I shall always be near you; in the mander for the Theodore Roosevelt FORCE RESERVE. brightest days and in the darkest nights, al- Battle group 1–96; Operations Officer, Mr. THURMOND. Mr. President, on ways, and if a soft breeze falls upon your Naval Special Warfare Group Two; cheek, it shall be my breath, as the cool air March 29, 2002, Douglas John Wreath fans your throbbing temple, it shall be my Chief Staff Officer, Naval Special War- was promoted to the grade of Colonel spirit passing by. Sarah do not mourn me fare Group Two; and Requirements Of- in the United States Air Force Reserve. dead; think I am gone and wait for me, for ficer for Naval Special Warfare Devel- Major General Mike Hamel, USAF, ad- we shall meet again. opment Group. Captain Green also ministered the military oath of office

VerDate 11-MAY-2000 04:14 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.033 pfrm12 PsN: S08PT1 S6354 CONGRESSIONAL RECORD — SENATE July 8, 2002 to Colonel Wreath on that date in a that can become substance. I believe uct that meets standards designed to ceremony that was held in the Reserve that by passing this legislation and provide real and adequate head protec- Officers Association of the United changing current law, we can change tion. Bike helmets are built to min- States Building, in Washington. It is hearts and minds as well. imum safety requirements, as are mo- my pleasure to join those who are con- f torcycle helmets. gratulating Colonel Wreath on this Apparel helmets, like the one worn CHRISTEN O’DONNELL EQUES- achievement. by Christen, offer little or no head pro- TRIAN HELMET SAFETY ACT Since 1997, Colonel Wreath has been tection, while ASTM-approved helmets an active duty Reservist, assigned to Mr. DODD. Mr. President, last week are designed to significantly reduce the United States Air Force Office of my colleague from Rhode Island, Sen- head injury. The difference in aesthetic Congressional Affairs. During part of ator CHAFEE, and I introduced legisla- design between the two is minimal, but this time, Colonel Wreath served as the tion to provide greater safety for chil- the underlying support structures of Acting Director of the United States dren and adults who ride horses in the these types of helmet are substantial. Liaison Office in the Senate, where he United States. Each year in our coun- ASTM-approved helmets offer a high became known to many Senators and try, nearly 15 million people go horse- degree of head protection, increase the members of their staffs. Colonel back riding. Whether it be profes- survivability of equestrian accidents Wreath is currently assigned to the sionally or for pleasure, Americans of and, in my view, should be the stand- United States Air Force Headquarters, all ages and from all walks of life enjoy ard for all equestrian helmets. This lack of adequate safety stand- at The Pentagon, where he is imple- equestrian sports. And, while everyone ards in riding helmets is why USA menting the recommendations of The acknowledges that horseback riding is Equestrian (USAEq), one of the largest Commission to Assess United States a high-risk activity, there are serious equestrian organizations in the coun- National Security Space Management safety issues related to equestrian try, recently mandated that ASTM-ap- and Organization, as well as serving as sports that can and should be ad- proved helmets must be worn in all the Air Staff Legislative Liaison for dressed. USAEq-sanctioned events. While this Space Integration issues. I first became aware of the problem decision effectively eliminates the dan- Colonel Wreath is a graduate of the of equestrian helmets when Kemi ger posed by ‘‘apparel helmets’’ at United States Air Force Academy. He O’Donnell, a constituent of mine in these events, each day many more stu- has also earned the degree of Master of Connecticut, called my office to relate dents ride in lessons and in private Science in Systems Management from her family’s tragic experience. The shows that are not USAEq-sanctioned. the University of Colorado. story she shared opened my eyes to the For their safety, I believe that Con- Doug Wreath began his career in the danger posed by certain equestrian hel- gress should establish minimum safety United States Air Force as a Space mets. In 1998, Kemi’s daughter, Chris- standards for all equestrian helmets Shuttle Navigation Analyst in 1984, ten O’Donnell, was a young 12-year-old sold in the United States, so that all leavings, as a Space Operations Officer resident of Darien, Connecticut, and a riders can obtain headgear that offers in 1992, when he transferred into the 7th grader at New Canaan Country actual protection against head injury. Reserve. While on active duty, Doug School. Active and sporty, Christen This is not an unprecedented sugges- Wreath performed a variety of com- was a talented intermediate rider who tion. As I stated before, Congress has mand and support activities at three had five years of riding experience already acted to similarly ensure the duty stations, and as the Personal As- under her belt when she mounted her safety of bike helmets. The legislation sistant to the Commander of the Air horse on the morning of August 11. As that I and Senator Chafee introduce in Force Space Command, he assisted in always, Christen wore a helmet and Christen’s memory today is modeled on establishing the operational plans and was accompanied by her trainer when this successful bike helmet law and policies of the Air Force National she began a slow walk through the would go a long way toward reducing Space Program. ring. Suddenly, without warning, the Colonel Wreath is an outstanding horse she was riding shook its head, the mortality of equestrian accidents. The Christen O’Donnell Equestrian American who has developed an im- and Christen was thrown off onto 4 Helmet Safety Act would require that pressive record of achievement through inches of sand. Even though her horse was only at a walk, and Christen was the Consumer Product Safety Commis- his service to our Nation. I am pleased sion establish minimum requirements, to commend Colonel Wreath on his pro- wearing a helmet, that helmet offered her little protection, and she sustained based on the already proven ASTM motion and I extend my best wishes to standard, for all equestrian helmets in him for much continued success. severe head injuries as a result of the fall. She was rushed to Stamford hos- the United States. Thus, there would f be a uniform standard for all eques- pital where, despite efforts to save her, trian helmets, and riders could be con- LOCAL LAW ENFORCEMENT ACT she died the next day. The magnitude fident that the helmet they buy offers OF 2001 of their loss has been compounded by real head protection. Let me be clear. the thought that, had Christen been Mr. SMITH of Oregon. Mr. President, This modest legislation does not man- I rise today to speak about hate crimes wearing a better constructed helmet, it date that riders wear helmets. That is legislation I introduced with Senator is possible she could have survived this a matter better left to individual KENNEDY in March of last year. The accident. states. But, it would take a significant My colleagues may be shocked to Local Law Enforcement Act of 2001 step toward improving the surviv- would add new categories to current learn, as Christen’s parents were, that ability of equestrian accidents and hate crimes legislation sending a sig- there are no government standards in would bring the United States in line nal that violence of any kind is unac- existence for the manufacturing of with other industrialized countries ceptable in our society. equestrian helmets. Some helmets are with sizable riding populations. Coun- I would like to describe a terrible voluntarily constructed to meet strict tries like Australia and New Zealand crime that occurred January 25 in American Society of Testing and Mate- have enacted similar safety legislation, Washington, DC. Two minors attacked rials (ASTM) testing requirements, but and the European Union has set stand- two gay men leaving a gay bar in Du- the vast majority of helmets sold in ards to make sure that helmets for Pont Circle. Before attacking the vic- the U.S. offer little or no real protec- equestrian activities meet continental tims, the assailants shouted deroga- tion and are merely cosmetic hats—a standards. It is time for the United tory, anti-homosexual slurs at them. form of apparel. Frequently, parents of States to take similar steps. Local police have arrested one of the young riders like Christen—and even This bill is supported by a wide-rang- perpetrators. more mature riders—do not know that ing coalition of equestrian, child safe- I believe that government’s first duty they are buying an untested and unap- ty, and medical groups. This bill has is to defend its citizens, to defend them proved item when they purchase a received the endorsement of the Na- against the harms that come out of riding helmet. Indeed, most riders be- tional SAFEKIDS coalition, an organi- hate. The Local Law Enforcement En- lieve that when they buy a helmet at zation dedicated to preventing acci- hancement Act of 2001 is now a symbol the store, they are purchasing a prod- dental injury to children, and the

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.035 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6355 Brain Trauma Foundation, a leading untary program for prescription drug cov- Resolved, That certified copies of this Con- medical group dedicated to preventing erage under the Medicare Program, to mod- current Resolution be transmitted to the and treating brain injury. Addition- ernize and reform payments and the regu- President of the United States, the President ally, USAEq has passed a rule in sup- latory structure of the Medicare Program, of the United States Senate, the Speaker of and for other purposes. the United States House of Representatives, port of the concept of the bill, requir- f members of Hawaii’s congressional delega- ing all children to wear ASTM ap- tion, the Secretary of Health and Human proved helmets and strongly recom- MEASURES PLACED ON THE Services, and the Administrator of the Cen- mending that all adults do so as well. CALENDAR ters for Medicare and Medicaid Services. Further, in the Chronicle of the Horse, The following bill was read the sec- the trade publication for the Master of POM–263. A resolution adopted by the Sen- ond time, and placed on the calendar: ate of the Legislature of the State of Michi- Foxhounds Association, the U.S. H.R. 4231. An act to improve small business gan relative to the Federal Prison Industries Equestrian Team, the U.S. Pony Clubs, advocacy, and for other purposes. Competition in Contracting Act; to the Com- The National Riding Commission, the The following bill was read the first mittee on the Judiciary. Foxhound Club of North America, the and second times by unanimous con- SENATE RESOLUTION NO. 211 National Beagle Club, the U.S. sent, and placed on the calendar: Whereas, In 1934, Federal Prison Industries Dressage Foundation, the American (FPI) was created as a wholly owned govern- H.R. 5011. An act making appropriations ment corporation. Today, FPI operates 103 Vaulting Association, and North Amer- for military construction, family housing, factories, with over 21,000 inmate workers ican Riding for the Handicapped Asso- and base realignment and closure for the De- and annual sales of more than $500 million ciation, and the Intercollegiate Horse partment of Defense for the fiscal year end- per year. The operation offers over 150 prod- ing September 30, 2003, and for other pur- Show Association, an article was pub- ucts. FPI enjoys significant advantages over poses. lished endorsing the ASTM rule. Given private manufacturers making similar prod- the wide range of organizations that f ucts because of government procurement endorse this bill, or have endorsed the PETITIONS AND MEMORIALS policies, including a ‘‘mandatory source’’ re- ASTM rule, it is clear that riders, quirement for government agencies; and coaches, and medical professionals The following petitions and memo- Whereas, With obvious personnel and bene- alike recognize the need for a standard, rials were laid before the Senate and fits advantages over private sector firms, there is a clear penalty to employers and tested helmet design. were referred or ordered to lie on the table as indicated. workers under the current situation. Some I would like to draw my colleague’s of the most respected companies in many attention to some alarming statistics POM–262. A concurrent resolution adopted fields suffer significantly from the unfair that further demonstrate the impor- by the Senate of the Legislature of the State competition from FPI; and tance and expediency of this bill. of Hawaii relative to Medicare coverage of Whereas, In Michigan, the impact of cur- oral cancer drugs; to the Committee on Fi- rent FPI policies has been strongly felt by Emergency rooms all across America nance. have to deal with an influx of horse-re- many working families. Last year, Michigan SENATE CONCURRENT RESOLUTION NO. 65 lost thousands of manufacturing jobs; and lated injuries each year. Nationwide in Whereas, cancer is a leading cause of mor- Whereas, Congress is presently considering 1999, an estimated 15,000 horse-related bidity and mortality in the State of Hawaii a measure that would bring comprehensive emergency department visits were and throughout the Nation; and reforms to the operations of FPI. The Fed- made by youths under 15 years old. Of Whereas, cancer is disproportionately a eral Prison Industries Competition in Con- these injuries, head injuries were by far disease of the elderly, with more than half of tracting Act would address directly the the most numerous and accounted for all cancer diagnoses occurring in persons age present unfair government purchasing poli- around 60 percent of equestrian-related 65 or older, who are thus dependent on the cies. This legislation, H.R. 1577, includes spe- deaths. These injuries occurred, and federal Medicare program for provision of cific requirements that FPI would have to cancer care; and follow to achieve fairness and promote the continue to occur, at all ages and at all Whereas, treatment with anti-cancer drugs training of inmates. Under the Federal Pris- levels of riding experience. That an in- is the cornerstone of modern cancer care, el- on Industries Competition in Contracting adequately protected fall from a horse derly cancer patients must have access to Act, FPI would compete for contracts in a can kill is not surprising when you ex- potentially life-extending drug therapy, but manner that minimizes unfair advantages amine the medical statistics. A human the Medicare program’s coverage of drugs is and ensures that government agencies get skull can be shattered by an impact of limited to injectable drugs or oral drugs that the best value for taxpayer dollars. The leg- less than 6.2 miles per hour, while have an injectable version; and islation also includes numerous account- horses can gallop at approximately 40 Whereas, the nation’s investment in bio- ability measures, increased emphasis on pre- medical research has begun to bear fruit paring inmates for a return to society, and miles per hour. A fall from two feet can with a compelling array of new oral anti- enhanced restitution for victims of crime; cause permanent brain damage, and a cancer drugs that are less toxic, more effec- and horse elevates a rider to eight feet or tive and more cost-effective than existing Whereas, A more appropriate approach to more above the ground. These statis- therapies, but, because such drugs do not prisoner-based manufacturing will not only tics make it evident that horseback have an injectable equivalent, they are not bring fairness to the marketplace and thou- riding is a high-risk sport. While all covered by Medicare; and sands of America’s working families, but it riders acknowledge this fact, reducing Whereas, non-coverage of these important also will enhance the federal corrections sys- new products leaves many Medicare bene- tem; now, therefore, be it the risk of serious injury while horse- ficiaries confronting the choice of either sub- Resolved by the Senate, That we memori- back riding is attainable through the stantial out-of pocket personal costs or se- alize the Congress of the United States to use of appropriate head protection. We lection of more toxic, less effective treat- enact the Federal Prison Industries Competi- should pass this bill, and pass it soon, ments that are covered by the program; and tion in Contracting Act; and be it further to ensure that head protection for Whereas, Medicare’s failure to cover oral Resolved, That copies of this resolution be equestrian events is safe and effective. anti-cancer drugs leaves at risk many bene- transmitted to the President of the United American consumers deserve to be ficiaries suffering from blood-related cancers States Senate, the Speaker of the United States House of Representatives, and the confident that their protective gear, like leukemia, lymphoma, and myeloma, as well as cancers of the breast, lung, and pros- members of the Michigan congressional dele- should they choose to wear it, offers tate; and gation. real protection. I urge my colleagues to Whereas, certain Members of the United support this bill. States Congress have recognized the neces- POM–264. A resolution adopted by the Sen- ate of the Legislature of the State of Hawaii f sity of Medicare coverage for all oral anti- cancer drugs and introduced legislation in relative to veterans benefits to Filipino vet- MESSAGE FROM THE HOUSE the 107th Congress to achieve that result erans of the United States Armed Forces; to At 2:09 p.m., a message from the (H.R. 1624; S. 913), now, therefore, be it the Committee on Veterans’ Affairs. House of Representatives, delivered by Resolved by the Senate of the Twenty-first SENATE RESOLUTION NO. 26 Mr. Hays, one of its reading clerks, an- Legislature of the State of Hawaii, Regular Ses- Whereas, the Philippine Islands, as a result sion of 2002, the House of Representatives con- nounced that the House has passed the of the Spanish-American War, were a posses- curring, That the Congress of the United sion of the United States between 1898 and following bill, in which it requests the States in respectfully requested to enact leg- 1946; and concurrence of the Senate: islation requiring the Medicare program to Whereas, in 1934, the Philippine Independ- H.R. 4954. An act to amend title XVIII of cover all oral anticancer drugs; and be it fur- ence Act (P.L. 73–127) set a ten-year time- the Social Security Act to provide for a vol- ther. table for the eventual independence of the

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.037 pfrm12 PsN: S08PT1 S6356 CONGRESSIONAL RECORD — SENATE July 8, 2002

Philippines and in the interim established a Whereas, United States veterans medical SENATE RESOLUTION NO. 99 government of the Commonwealth of the benefits for the four groups of Filipino vet- Whereas, Tianjin, a city in northeastern Philippines with certain powers over its own erans vary depending upon whether the per- China, is one of four municipalities under internal affairs; and son resides in the United States or the Phil- the direct control of the central government Whereas, the granting of full independence ippines; and of the People’s Republic of China, and in 2001 ultimately was delayed for two years until Whereas, the eligibility of Old Scouts for had a population slightly over 10,000,000; and 1946 because of the Japanese occupation of benefits based on military service in the Whereas, the city is made up of 13 dis- the islands from 1942 to 1945; and United States Armed Forces has long been tricts, five counties, 126 villages, 93 towns, Whereas, between 1934 and the final inde- established; and and 133 street communities; and pendence of the Philippine Islands in 1946, Whereas, the federal Department of Vet- Whereas, the history of Tianjin begins with the United States retained certain sovereign erans Affairs operates a comprehensive pro- the opening of the Sui Dynasty’s Big Canal powers over the Philippines, including the gram of veterans benefits in the present gov- (581–617 AD). Beginning in the mid-Tang Dy- right, upon order of the President of the ernment of the Republic of the Philippines, nasty (618–907 AD), Tianjin became the nexus United States, to call into the service of the including the operation of a federal Depart- for the transport of foodstuffs and silk be- United States Armed Forces all military ment of Veterans Affairs office in Manila; tween south and north China. During the forces organized by the Commonwealth gov- and Ming Dynasty (1404 AD), the city figured ernment; and Whereas, the federal Department of Vet- prominently as a military center. In 1860, its Whereas, President Franklin D. Roosevelt, erans Affairs does not operate a program of importance as a business and communica- by Executive order of July 26, 1941, brought this type in any other country; and tions center began to grow; and the Philippine Commonwealth Army into the Whereas, the program in the Philippines Whereas, Tianjin is known as the Bright evolved because the Philippine Islands were service of the United States Armed Forces of Diamond of Bohai Gulf and is the gateway to a United States possession during the period the Far East under the command of Lieuten- China’s capital of Beijing. Tianjin is one of 1898–1946, and many Filipinos have served in ant General Douglas MacArthur; and China’s biggest business and industrial port the United States Armed Forces, and be- Whereas, under the Executive Order of cities and, in north China, is the biggest port cause the preindependence Philippine Com- July 26, 1941, Filipinos were entitled to full city. Tianjin now ranks second in impor- monwealth Army was called into the service veterans benefits; and tance and size in terms of industry, business, of the United States Armed Forces during Whereas, approximately 200,000 Filipino finance, and trade in the north. Its industrial soldiers, driven by a sense of honor and dig- World War II (1941–1945); and Whereas, our nation has failed to meet the production and trade volume is second only nity, battled under the United States Com- promises made to those Filipino soldiers who to Shanghai in the south; and mand after 1941 to preserve our liberty; and Whereas, the city’s traditional industries fought as American soldiers during World Whereas, the vast majority of American War II; and include mining, metallurgy, machine-build- soldiers who opposed the Japanese invasion Whereas, Congress passed legislation in ing, chemicals, power production, textiles, of the Philippines from December 1941, 1946 limiting and precluding Filipino vet- construction materials, paper-making, food- through March 1942, were Filipinos, who gal- erans that fought in the service of the stuffs, shipbuilding, automobile manufac- lantly fought down the length of the Bataan United States during World War II from re- turing, petroleum exploitation and proc- peninsula, and endured unbearable hardships ceiving most veterans benefits that were essing, tractor production, fertilizer and pes- during the siege of Corregidor; and available to them before 1946; and ticide production, and watch, television, and Whereas, following the surrender of Cor- Whereas, many Filipino veterans have been camera manufacturing; and regidor, Filipino soldiers, isolated from the unfairly treated by the classification of their Whereas, in 1994, Tianjin’s economic goal rest of the world with only the hope that service as not being service rendered in the was to double its gross national product by American forces might someday return, cou- United States Armed Forces for purposes of the year 2003. With its 1997 gross national rageously waged guerrilla warfare against benefits from the federal Department of Vet- product reaching RMB 124 billion yuan the Japanese occupation; and erans Affairs; and (about RMB 8.26 yuan to US$ 1), Tianjin is Whereas, Filipino soldiers fought bravely Whereas, other nationals who served in the poised to reach that goal. By the end of 1998, alongside returning Allied forces to liberate United States Armed Forces have been rec- 12,065 foreign-owned companies were estab- the Philippines and restore order in the war- ognized and granted full rights and benefits, lished in Tianjin that invested a total of torn islands until the official end of hos- but the Filipinos, American nationals at the RMB 21.017 billion yuan (about US$ 2.5 bil- tilities in 1947; and time of service, are still denied recognition lion). About RMB 9.291 billion yuan (about Whereas, there are four groups of Filipino and singled out for exclusion, and this treat- US$ 1.1 billion) of that amount was used for nationals who are entitled to all or some of ment is unfair and discriminatory; and development of Tianjin; and the benefits to which United States veterans Whereas, on October 20, 1996, President Whereas, in the past, business and other are entitled; Clinton issued a proclamation honoring the forms of industrial enterprises were pri- (1) Filipinos who served in the regular nearly 100,000 Filipino veterans of World War marily state-owned throughout China. How- components of the United States Armed II, soldiers of the Philippine Commonwealth ever, under on-going nationwide reform, the Forces; Army, who fought as a component of the proportion of businesses that are state- (2) Regular Philippine Scouts, called ‘‘Old United States Armed Forces alongside allied owned is being reduced. In Tianjin, the per- Scouts’’, who enlisted in Filipino-manned forces for four long years to defend and re- centage of state-owned enterprises in 1997 units of the United States Army prior to Oc- claim the Philippine Islands, and thousands was 35.7 per cent versus 16.6 per cent for col- tober 6, 1945; and prior to World War II, these more who joined the United States Armed lective ownership, and 47.7 per cent for other troops assisted in the maintenance of domes- Forces after the war; now, therefore, be it forms, including private ownership. In the tic order in the Philippines and served as a Resolved by the Senate of the Twenty-First retail sector, the respective proportions were combat-ready force to defend the islands Legislature of the State of Hawaii, Regular Ses- 23.7 per cent, 17.3 per cent, and 59 per cent, against foreign invasion, and during the war, sion of 2002, that the President and the Con- respectively; and they participated in the defense and retaking gress of the United States are respectfully Whereas, Tianjin has a broad science and of the islands from Japanese occupation; requested in the 107th Congress to take ac- technology base upon which to build, for ex- (3) Special Philippine Scouts, called ‘‘New tion necessary to honor our country’s moral ample, it is home to 161 independent research Scouts’’, who enlisted in the United States obligation to provide these Filipino veterans institutions (117 local and 44 national). Aside Armed Forces between October 6, 1945, and with the military benefits that they deserve, from its several universities and colleges, June 30, 1947, primarily to perform occupa- including, but not limited to, holding related Tianjin has six national-level laboratories tion duty in the Pacific following World War hearings, and acting favorably on legislation and 27 national and ministerial-level techno- II; and pertaining to granting full veterans benefits logical test centers and has plans to increase (4) Members of the Philippine Common- to Filipino veterans of the United States its science and technology educational goals; wealth Army who on July 26, 1941, were Armed Forces; and be it further and called into the service of the United States Resolved, that certified copies of this Reso- Whereas, in 1984, the State Council issued Armed Forces, including organized guerrilla lution be transmitted to the President of the a directive to establish the Tianjin Eco- resistance units that were recognized by the United States, the President of the United nomic-Technological Development Area United States Army; States Senate, the Speaker of the United (TEDA), situated some 35 miles from Tianjin. Whereas, the first two groups, Filipinos States House of Representatives, and the Recently, some 3,140 foreign-invested compa- who served in the regular components of the members of Hawaii’s congressional delega- nies have located to TEDA with a total in- United States Armed Forces and Old Scouts, tion. vestment of over US$ 11 billion; and are considered United States veterans and Whereas, at present, TEDA has developed are generally entitled to the full range of POM–265. A resolution adopted by the Sen- four pillar industries: electronics and com- United States veterans benefits; and ate of the State of Hawaii relative to the es- munications, automobile manufacturing and Whereas, the other two groups, New Scouts tablishment of a sister-state relationship be- mechanization, food and beverages, and bio- and members of the Philippine Common- tween the State of Hawaii of the United pharmacy, and is promoting four new indus- wealth Army, are eligible for certain vet- States of America and the Municipality of tries: information software, bioengineering, erans benefits, some of which are lower than Tianjin in the People’s Republic of China; to new energies, and environmental protection; full veterans benefits; and the Committee on Foreign Relations. and

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.041 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6357 Whereas, in 1996, TEDA began offering a Angeles Consulate General of the People’s (TEDA), situated some 35 miles from Tianjin. technology incubator to help small and me- Republic of China. Recently, some 3,140 foreign-invested compa- dium-sized enterprises with funding, tax nies have located to TEDA with a total in- breaks, personnel, etc. Within the TEDA POM–266. A Senate concurrent resolution vestment of over US$ 11 billion; and high-tech park, Tianjin offers preferential adopted by the Legislature of the State of Whereas, at present, TEDA has developed treatment in the form of funding, land fees, Hawaii relative to the establishment of a sis- four pillar industries: electronics and com- taxes, and facilities (such as water, gas, and ter-state relationship between the State of munications, automobile manufacturing and hearing). Residential and other services, Hawaii of the United States of America and mechanization, food and beverages, and bio- shopping, and educational and recreation fa- the Municipality of Tianjin in the People’s pharmacy, and is promoting four new indus- cilities are either already in place or are Republic of China; to the Committee on For- tries: information software, bioengineering, being planned; and eign Relations. new energies, and environmental protection; Whereas, for the eleven months ending No- SENATE CONCURRENT RESOLUTION NO. 161 and vember 2001, total exports from TEDA was Whereas, in 1996, TEDA began offering a Whereas, Tianjin, a city in northeastern US$ 3.53 billion, of which foreign-funded en- technology incubator to help small and me- China, is one of four municipalities under terprises accounted for US$ 3.49 billion while dium-sized enterprises with funding, tax the direct control of the central government total foreign investment in TEDA amounted breaks, personnel, etc. Within the TEDA of the People’s Republic of China, and in 2001 to US$ 2.3 billion; and high-tech park, Tianjin offers preferential Whereas, Hawaii has been, since its early had a population slightly over 10,000,000; and treatment in the form of funding, land fees, Whereas, the city is made up of 13 dis- days, the destination of many Chinese immi- taxes, and facilities (such as water, gas, and tricts, five counties, 126 villages, 93 towns, grants who have helped to develop the State heating). Residential and other services, and 133 street communities; and and its economy; and shopping, and educational and recreation fa- Whereas, the history of Tianjin begins with Whereas, compared to the rest of the coun- cilities are either already in place or are the opening of the Sui Dynasty’s Big Canal try, Hawaii is advantageously situated in the being planned; and Pacific to better establish and maintain cul- (581–617 AD). Beginning in the mid-Tang Dy- Whereas, for the eleven months ending No- tural, educational, and economic relation- nasty (618–907 AD), Tianjin became the nexus vember 2001, total exports from TEDA was ships with countries in the Asia-Pacific re- for the transport of foodstuffs and silk be- US$ 3.53 billion, of which foreign-funded en- gion, especially the People’s Republic of tween south and north China. During the terprises accounted for US$ 3.49 billion while China; and Ming Dynasty (1404 AD), the city figured total foreign investment in TEDA amounted Whereas, the new century we have em- prominently as a military center. In 1860, its to US$ 2.3 billion; and barked upon has been described by some as importance as a business and communica- Whereas, Hawaii has been, since its early the ‘‘century of Asia’’ or the ‘‘China’s cen- tions center began to grow; and days, the destination of many Chinese immi- tury’’; and Whereas, Tianjin is known as the Bright grants who have helped to develop the State Whereas, like Tianjin, Hawaii is also striv- Diamond of Bohai Gulf and is the gateway to and its economy; and ing to diversify its economy by expanding China’s capital of Beijing. Tianjin is one of Whereas, compared to the rest of the coun- into environmentally clean high-technology China’s biggest business and industrial port try, Hawaii is advantageously situated in the industries including medical services and re- cities and, in north China, is the biggest port Pacific to better establish and maintain cul- search; and city. Tianjin now ranks second in impor- tural, educational, and economic relation- Whereas, the State also emphasizes the im- tance and size in terms of industry, business, ships with countries in the Asia-Pacific re- portance of higher education in order to cre- finance, and trade in the north. Its industrial gion, especially the People’s Republic of ate a solid foundation and workforce to serve production and trade volume is second only China; and as the basis from which to launch initiatives to Shanghai in the south; and Whereas, the new century we have em- in high-technology development; and Whereas, the city’s traditional industries barked upon has been described by some as Whereas, both Hawaii and Tianjin share include mining, metallurgy, machine-build- the ‘‘century of Asia’’ or the ‘‘China’s cen- many common goals and values as both work ing, chemicals, power production, textiles, tury’’; and towards achieving their economic and edu- construction materials, paper-making, food- Whereas, like Tianjin, Hawaii is also striv- cational objectives in the new century, and stuffs, shipbuilding, automobile manufac- ing to diversify its economy by expanding the people of the State of Hawaii desire to turing, petroleum exploitation and proc- into environmentally clean high-technology form a mutually beneficial relationship be- essing, tractor production, fertilizer and pes- industries including medical services and re- tween the State of Hawaii and the munici- ticide production, and watch, television, and search; and pality of Tianjin to share our knowledge and camera manufacturing; and Whereas, the State also emphasizes the im- experiences in order to better assist each Whereas, in 1994, Tianjin’s economic goal portance of higher education in order to cre- other in reaching our goals; now, therefore, was to double its gross national product by ate a solid foundation and workforce to serve be it the year 2003. With its 1997 gross national as the basis from which to launch initiatives Resolved by the Senate of the Twenty-First product reaching RMB 124 billion yuan in high-technology development; and Legislature of the State of Hawaii, Regular Ses- (about RMB 8.26 yuan to US$ 1), Tianjin is Whereas, both Hawaii and Tianjin share sion of 2002, That Governor Benjamin poised to reach that goal. By the end of 1998, many common goals and values as both work Cayetano, of the State of Hawaii, or his des- 12,065 foreign-owned companies were estab- towards achieving their economic and edu- ignee, be authorized and is requested to take lished in Tianjin that invested a total of cational objectives in the new century, and all necessary actions to establish a sister- RMB 21.017 billion yuan (about US$ 2.5 bil- the people of the State of Hawaii desire to state affiliation with the municipality of lion). About RMB 9.291 billion yuan (about form a mutually beneficial relationship be- Tianjin of the People’s Republic of China; US$ 1.1 billion) of that amount was used for tween the State of Hawaii and the munici- and be it further development of Tianjin; and pality of Tianjin to share our knowledge and Resolved, That the Governor or his designee Whereas, in the past, business and other experiences in order to better assist each is requested to keep the Senate of the State forms of industrial enterprises were pri- other in reaching our goals; now, therefore, of Hawaii fully informed of the process in es- marily state-owned throughout China. How- be it tablishing the relationship, and involved in ever, under on-going nationwide reform, the Resolved, by the Senate of the Twenty-First its formalization to the extent practicable; proportion of businesses that are state- Legislature of the State of Hawaii, Regular Ses- and be it further owned is being reduced. In Tianjin, the per- sion of 2002, the House of Representatives con- Resolved, That the municipality of Tianjin centage of state-owned enterprises in 1997 curring, That Governor Benjamin Cayetano, be afforded the privileges and honors that was 35.7 per cent versus 16.6 per cent for col- of the State of Hawaii, or his designee, be au- Hawaii extends to its sister-states and prov- lective ownership, and 47.7 per cent for other thorized and is requested to take all nec- inces; and be it further forms, including private ownership. In the essary actions to establish a sister-state af- Resolved, That if by June 30, 2007, the sis- retail sector, the respective proportions were filiation with the municipality of Tianjin of ter-state affiliation with the municipality of 23.7 per cent, 17.3 per cent, and 59 per cent, the People’s Republic of China; and be it fur- Tianjin of the People’s Republic of China has respectively; and ther not reached a sustainable basis by providing Whereas, Tianjin has a broad science and Resolved, That the Governor or his designee mutual economic benefits through local technology base upon which to build, for ex- is requested to keep the Legislature of the community support, the sister-state affili- ample, it is home to 161 independent research State of Hawaii fully informed of the process ation shall be withdrawn; and be it further institutions (117 local and 44 national). Aside in establishing the relationship, and involved Resolved, That certified copies of this Reso- from its several universities and colleges, in its formalization to the extent prac- lution be transmitted to the President of the Tianjin has six national-level laboratories ticable; and be it further United States, the Governor of the State of and 27 national and ministerial-level techno- Resolved, That the municipality of Tianjin Hawaii, the President of the United States logical test centers and has plans to increase be afforded the privileges and honors that Senate, the Speaker of the United States its science and technology educational goals; Hawaii extends to its sister-states and prov- House of Representatives, Hawaii’s congres- and inces; and be it further sional delegation, and the President of the Whereas, in 1984, the State Council issued Resolved, That if by June 30, 2007, the sis- People’s Republic of China and the Mayor of a directive to establish the Tianjin Eco- ter-state affiliation with the municipality of the municipality of Tianjin through the Los nomic-Technological Development Area Tianjin of the People’s Republic of China has

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.043 pfrm12 PsN: S08PT1 S6358 CONGRESSIONAL RECORD — SENATE July 8, 2002 not reached a sustainable basis by providing Whereas, in June 2001; Senator Inouye and Whereas, the cost of supporting FAS citi- mutual economic benefits through local Senator Akaka introduced a bill to authorize zens, largely in healthcare and education, community support, the sister-state affili- the addition of the Ki‘ilae Village lands to was $86 million between 1996 and 2000; and ation shall be withdrawn; and be it further Pu‘uhonua O Honaunau National Historical Whereas, FAS students have higher costs Resolved, That certified copies of this Con- Park and in October 2001, this bill passed the than other students due to poor language current Resolution be transmitted to Presi- United States Senate and it is anticipated and other skills; and dent of the United States, the Governor of that the authorization bill will pass the Whereas, due to FAS students entering and the State of Hawaii, the President of the House of Representatives as well; and leaving school a few times each year their United States Senate, the Speaker of the Whereas, these acquisitions offer an oppor- integration into the school system difficult; United States House of Representatives, Ha- tunity rarely imagined because they would and waii’s congressional delegation, and the give the National Park Service an excellent Whereas, since the Compact went into ef- President of the People’s Republic of China chance to expand and protect native plants fect in 1986 until 2001, the State spent over and the Mayor of the municipality of Tianjin and archaeological sites from destruction; $64 million to educate FAS citizens and their through the Los Angeles Consulate General and children in our public schools, $10 million in of the People’s Republic of China. Whereas, these opportunities can benefit 2000 alone; and POM–267. A Senate concurrent resolution current and future generations of residents Whereas, FAS citizens continue to have a adopted by the Legislature of the State of and tourists, because expansion of Volcanoes fast-growing impact on our public school Hawaii relative to the acquisition by the National Park and Pu‘uhonua O Honaunau system; and United States National Park Service of National Historical Park will preserve more Whereas, last year, the number of FAS stu- Kahuku Ranch for expansion of the Hawaii open space, add to the natural environment, dents in our primary and secondary public Volcanoes National Park and of Ki’ilae Vil- protect affected native species, and preserve schools increased by 28%, resulting in costs lage for expansion of Pu’uhonua O Honaunau cultural and historical sites; and to the State of over $13 million for the aca- National Historical Park; to the Committee Whereas, in January 2001, the National demic year, bringing the total cost since 1988 on Energy and Natural Resources. Park Service held a series of public meetings to about $78 million; and to receive comments from the public regard- Whereas, during the academic school year SENATE CONCURRENT RESOLUTION NO. 36 ing possible purchase of Kahuku Ranch and 2001–2002, the University of Hawaii lost over Whereas, the Volcanoes National Park on Ki‘ilae Village, and the nearly 400 people in $1.2 million in tuition revenue as a result of the Big Island consists of 217,000 acres and is attendance at the meetings expressed over- students from the Federated States of Micro- one of only two national parks in this State; whelming support and endorsement; now, nesia, the Republic of the Marshall Islands, and therefore, be it and the Republic of Palau paying resident Whereas, the Volcanoes National Park at- Resolved, by the Senate of the Twenty-First rather than non-resident tuition; and tracts about 1,500,000 visitors each year who Legislature of the State of Hawaii, Regular Ses- Whereas, inadequate and delayed federal enjoy the natural beauty of the lava fields, sion of 2002, the House of Representatives con- compensation to Hawaii’s education system native forests, and ocean cliffs; and curring, That the Legislature supports the will be at a cost to our own children, and Whereas, a large parcel of land lying to the acquisition by the United states National contributes to Hawaii being substantially south and west of the Volcanoes National Park Service of Kahuku Ranch for expansion below many other states in per pupil expend- Park known as Kahuku Range consisting of of the Hawaii Volcanoes National Park and itures for its public school children in kin- 117,000 acres has come up for sale; and of Ki‘ilae Village for expansion of Pu‘uhonua dergarten through 12th grade; and Whereas, the Kahuku Ranch parcel con- O Honaunau National Historical Park; and Whereas, state Medicaid payments for FAS tains outstanding geological, biological, cul- be it further citizens from 1998 to 2001 totaled $12.4 mil- tural, scenic, and recreational value, and is Resolved, That certified copies of this Con- lion; and the sole habitat for at least four threatened current Resolution be transmitted to the Di- Whereas, the financial stability and viabil- and endangered bird species endemic to Ha- rector of the National Park Service, the ity of private hospitals and medical pro- waii; and President of the United States Senate, the viders is threatened by staggering debts and Whereas, the National Park Service since Speaker of the United States House of Rep- write-offs resulting from medical services to 1945 has recognized that the property con- resentatives, and to the members of Hawaii’s FAS citizens, in spite of state Medicaid retained nationally significant resources and congressional delegation. imbursements; and in fact, in its 175 Master Plan, the National Whereas, the Queen’s Medical Center alone Park Service identified the property as a POM–268. A Senate concurrent resolution has incurred operating losses of $16 million ‘‘potential addition to improve the geologi- adopted by the Legislature of the State of between 1995 and 1999, and is owed over $11 cal, ecological, and scenic integrity of Ha- Hawaii relative to urging adequate financial million by Compact of FAS nations; and waii Volcanoes National Park’’; and impact assistance to providing services to Whereas, community health centers esti- Whereas, the 181-acre Pu’uhonua O citizens of the freely associated states who mate an annual cost of $420,000 for services Honaunau National Historical Park was es- reside in the State of Hawaii; to the Com- to FAS residents; and tablished in 1961 to save a sacred lace of ref- mittee on Energy and Natural Resources. Whereas, the Department of Health has uge that for centuries offered sanctuary to SENATE CONCURRENT RESOLUTION NO. 127 also been significantly impacted by the cost any who reached its walls; and Whereas, the Compact of Free Association of public health services to FAS immigrants Whereas, adjacent to Pu’uhonua O is an agreement established in 1986 between with $967,000 spent on screening vaccination Honaunau are the remains of Ki’ilae, an an- the United States and the Federated States and treatment of communicable diseases and cient Hawaiian settlement dating back to of Micronesia and the Republic of the Mar- $190,000 spent for immunization and outreach the late 12th or early 13th centuries, and shall Islands, and in 1994 with the Republic by public health nurses; and which remained active until about 1930, mak- of Palau; and Whereas, FAS citizens may face unfair ing it one of the last traditional Hawaiian Whereas, under the Compact, the United criticism and refusal of medical services villages to be abandoned; and States provides direct economic assistance, from medical providers; and Whereas, significant portions of this an- federal services, and military protection to Whereas, inadequate and delayed federal cient Hawaiian village remain outside of na- these nations, in exchange for defense rights; compensation threaten to overwhelm Ha- tional park boundaries; and and waii’s health care systems, leading to poten- Whereas, including these lands within the Whereas, the U.S. State Department tial cutbacks in services and personnel that boundaries of Pu’uhonua O Honaunau Na- should consider the impact of Freely Associ- would impact all of Hawaii’s citizens; and tional Historical Park has been a goal of ated States citizens on Hawaii during this Whereas, it is imperative that Hawaii be park management for more than three dec- year’s renegotiation of the compacts; and granted immediate and substantial federal ades; and Whereas, citizens of these Freely Associ- assistance to meet these mounting costs; and Whereas, the park’s 1972 Master Plan iden- ated States (FAS) are also allowed to freely Whereas, Guam has been asking for—and tified Ki’ilae Village as a proposed boundary enter the United States without a visa or receiving—financial impact assistance for extension and in 1992, a Boundary Expansion other immigration requirements; and the last ten years; and Study completed for the park called for add- Whereas, drawn by the promise of better Whereas, the fact that Micronesians should ing the ‘‘balance of Ki‘ilae Village’’; and medical care and a better education for their qualify for federal benefits, while residing in Whereas, within the Ki‘ilae lands the Na- children, over 6,000 Freely Associated States Hawaii and the rest of the United States, can tional Park Service is seeking to acquire, citizens have migrated to and are currently best be summed up by the resolution which more than 800 archaeological sites, struc- residing in Hawaii; and was passed on September 9, 2001, in Wash- tures, and features have been identified, in- Whereas, the Compact’s enabling legisla- ington, D.C., by a national group called cluding at least twenty-five caves and ten tion authorizes federal compensation for im- Grassroots Organizing for Welfare Leader- heaiu, more than twenty platforms, twenty- pact costs incurred by United States areas, ship supporting the insertion of language in six enclosures, over forty burial features, including Hawaii; and all federal welfare, food, and housing legisla- residential compounds, a holua slide, canoe Whereas, the 1996 federal welfare reform tion because Micronesians are eligible for landing sites, a water well, numerous walls, act cut off access to federal welfare and med- these and other benefits as ‘‘qualified non- and a wide range of agricultural features; ical programs forcing citizens of these Free- immigrants’’ residing in the United States; and ly Associated States to rely on state aid; and and

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.046 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6359 Whereas, the United States government is ative to supporting the acquisition by the National Historical Park will preserve more not owning up to its responsibility for what United States National Park Service of open space, add to the natural environment, the United States did to the Micronesian Kahuku Ranch for expansion of the Hawaii protect affected native species, and preserve people by refusing them food stamps and Volcanoes National Park and of Ki’ilae Vil- cultural and historical sites; and other federal benefits when they came to Ha- lage for expansion of Pu’uhonua O Honaunau Whereas, in January 2001, the National waii and the rest of United States seeking National Historical Park; to the Committee Park Service held a series of public meetings help; and on Energy and Natural Resources. to receive comments from the public regard- Whereas, the excuse being used by the U.S. SENATE RESOLUTION, NO. 16 ing possible purchase of Kahuku ranch and government to deny any aid to the Microne- Ki’ilae Village, and the nearly 400 people in Whereas, the Volcanoes National Park on sians in the U.S. is the word ‘‘non- attendance at the meetings expressed over- the Big Island consists of 217,000 acres and is immigrant’’ used in the Compact of Free As- whelming support and endorsement; now, one of only two national parks in this State; sociation to describe Micronesians who move therefore, be it and to Hawaii and the U.S.; and Resolved, by the Senate of the Twenty-First Whereas, the Volcanoes National Park at- Whereas, on Dec. 7, 1993, then President Legislature of the State of Hawaii, Regular Ses- Bill Clinton formed an Advisory Committee tracts about 1,500,000 visitors each year who sion of 2002, That this body supports the ac- on Human Radiation Experiments which doc- enjoy the natural beauty of the lava fields, quisition by the United States National Park umented human radiation experiments; and native forests and ocean cliffs; and Service of Kahuku Ranch for expansion of Whereas, based on some of these docu- Whereas, a large parcel of land lying to the the Hawaii Volcanoes National Park and of ments, researchers indicate that all of Mi- south and west of the Volcanoes National Ki’ilae Village for expansion of Pu’uhonua O cronesia was affected, not just the Marshall Park known as Kahuku Ranch consisting of Honaunau National Historical Park; and be Islands; and 117,000 acres has come up for sale; and Whereas, it is the intent of this Resolution Whereas, the Kahuku Ranch parcel con- it further Resolved, That certified copies of this Reso- to encourage the responsible entities to im- tains outstanding geological, biological, cul- lution be transmitted to the Director of the plement the provisions of the Compact of tural, scenic, and recreational value, and is National Park Service, the President of the Freely Associated States, which authorizes the sole habitat for at least four threatened United States Senate, the speaker of the compact impact funds to be made available and endangered bird species endemic to Ha- United States House of Representatives, and to states that welcome and provide services waii; and to the people of the Federated States of Mi- Whereas, the National Park Service since to the members of Hawaii’s congressional cronesia, Republic of the Marshall Islands, 1945 has recognized that the property con- delegation. and Republic of Palau, because most of the tained nationally significant resources and POM–270. A resolution adopted by the Leg- FAS citizens that come to Hawaii do so for in fact, in its 1975 Master Plan, the National medical problems related the United States’ islature of the State of Alaska relative to Park Service identified the property as a military testing of nuclear bombs; and the construction and operation of the Alaska ‘‘potential addition to improve the geologi- Whereas, Micronesians are recruited to Highway Natural Gas Pipeline route; to the cal, ecological, and scenic integrity of Ha- serve in the U.S. military and ‘‘aliens’’ are Committee on Energy and Natural Re- waii Volcanoes National Park’’; and not similarly recruited into the U.S. mili- sources. tary; now, therefore, be it Whereas, the 181-acre Pu’uhonua O LEGISLATIVE RESOLVE NO. 50 Resolved, by the Senate of the Twenty-First Honaunau National Historical Park was es- Legislature of the State of Hawaii, Regular Ses- tablished in 1961 to save a sacred place of ref- Whereas the Alaska North Slope (ANS) has sion of 2002, the House of Representatives con- uge that for centuries offered sanctuary to the largest known, discovered natural gas recurring, That the Bush Administration and any who reached its walls; and sources, estimated to be 35 trillion cubic the U.S. Congress are requested to appro- Whereas, adjacent to Pu’uhonua O feet, in the United States and estimated, un- priate adequate financial impact assistance Honaunau are the remains of Ki’ilae, an an- discovered gas resources in excess of 100 tril- for health, education, and other social serv- cient Hawaiian settlement dating back to lion cubic feet; and ices for Hawaii’s Freely Associated States the late 12th or early 13th centuries, and Whereas demand for natural gas in the citizens; and be it further which remained active until about 1930, mak- lower 48 states is expected to experience Resolved, That the Bush Administration ing it one of the last traditional Hawaiian record growth, rising from approximately 22 and the U.S. Congress are requested to insert villages to be abandoned; and trillion feet a year in 2000 to 30–35 trillion language in all federal welfare, food, and Whereas, significant portions of this an- cubic feet a year in 2020, with some experts housing legislation which says that Microne- cient Hawaiian village remain outside of na- predicting demand to be as large as 50 tril- sians are eligible for federal food stamps, tional park boundaries; and lion cubic feet a year in 2020; and welfare, public housing, and other federal Whereas, including these lands within the Whereas the lower 48 states have an inad- benefits as ‘‘qualified nonimmigrants’’ resid- boundaries of Pu’uhonua O Honaunau Na- equate resource base to meet this expected ing in the United States; and be it further tional Historical Park has been a goal of demand, and experts expect that more nat- Resolved, That the Bush Administration park management for more than three dec- ural gas will have to be imported from Can- and the U.S. Congress are requested to re- ades; and ada and from other countries in the form of store FAS citizens’ eligibility for federal Whereas, the park’s 1972 Master Plan iden- liquefied natural gas (LNG); and public benefits, such as Medicaid, Medicare, tified Ki’ilae Village as a proposed boundary Whereas the near record drilling in the last and food stamps; and be it further extension and in 1992, a Boundary Expansion two years in the lower 48 failed to provide Resolved, That Hawaii’s congressional dele- Study completed for the park called for add- any significant gas supply increase and gates are requested to assure financial reim- ing the ‘‘balance of Ki’ilae Village’’; and many experts are questioning whether other bursements, through the establishment of a Whereas, within the Ki’ilae lands the Na- United States frontier areas like the deep- trust, escrow, or set-aside account, to the tional Park Service is seeking to acquire, water Gulf of Mexico will be able to deliver State of Hawaii for educational, medical, more than 800 archeological sites, structures, material new gas supplies and, therefore, and social services and to Hawaii’s private and features have been identified, including more imports may be required than pre- medical providers who have provided serv- at least twenty-five caves and ten heaiu, viously thought; and ices to Freely Associated States citizens; and more than twenty platforms, twenty-six en- Whereas it is important for the United be it further Resolved, That certified copies of this Con- closures, over forty burial features, residen- States to have a reliable and affordable current Resolution be transmitted to the tial compounds, a holua slide, canoe landing source of domestic natural gas for its citi- President of the United States, United sites, a water well, numerous walls, and a zens and businesses, and for national secu- States State Department, President of the wide range of agricultural features; and rity, especially given the recent tragic United States Senate, Speaker of the United Whereas, in June 2001, Senator Inouye and events; and States House of Representatives, members of Senator Akaka introduced a bill to authorize Whereas energy supply disruptions have Hawaii’s congressional delegation, Governor, the addition of the Ki’ilae Village lands to significant negative effect on the United Attorney General, Superintendent of Edu- Pu’uhonua O Honaunau National Historical States economy, including the losses of tens cation, Director of Health, Director of Agri- Park and in October 2001, this bill passed the of millions of United States jobs; and culture, Director of Human Services, Grass- United States Senate and it is anticipated Whereas, if the United States imports sig- roots Organizing for Welfare Leadership, Mi- that the authorization bill will pass the nificant amounts of LNG, it can be subjected cronesians United, United Church of Christ, House of Representatives as well; and to the market power of the exporting coun- Hawaii Conference of Churches, United Whereas, these acquisitions offer an oppor- try through mechanisms such as embargoes Methodist Church of Honolulu, national ne- tunity rarely imagined because they would and price making; and gotiating teams of the Compact of Free As- give the National Park Service an excellent Whereas ANS is one of the few known loca- sociation, and Presidents and Hawaii Con- change to expand and protect native plants tions in the United States that can supply sulates of the Federated States of Micro- and archaeological sites from destruction; significant natural gas supplies to the lower nesia, Republic of the Marshall Islands, and and 48 for years to come; and Republic of Palau. Whereas, these opportunities can benefit Whereas, given these supply and demand current and future generations of residents projections, several companies and entities POM–269. A Senate resolution adopted by and tourists, because expansion of Volcanoes have studied different pipeline routes, in- the Legislature of the State of Hawaii rel- National Park and Pu’uhonua O Honaunau cluding a ‘‘northern’’ route, running off the

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.049 pfrm12 PsN: S08PT1 S6360 CONGRESSIONAL RECORD — SENATE July 8, 2002 shore of the Arctic National Wildlife Refuge garding a natural gas pipeline, including the tended to exclude supply of Alaska North in the Beaufort Sea to the Mackenzie Delta study of in-state natural gas demand, nat- Slope natural gas to markets in the form of and south through Canada to the lower 48; a ural gas supply, a natural gas fiscal system, LNG or GTL. ‘‘southern’’ route along the Alaska Highway and the effect of natural gas sales on the through Canada to the lower 48; and an Prudhoe Bay reservoir; and POM–271. A resolution adopted by the Sen- ‘‘LNG’’ route adjacent to the Trans Alaska Whereas the Twenty-Second Alaska State ate of the General Assembly of the Common- Pipeline System pipeline to Valdez and LNG Legislature established the Joint Committee wealth of Pennsylvania regarding the Valley tankers for delivery to California; and on Natural Gas Pipeline (‘‘Joint Com- Forge National Historical Park; to the Com- Whereas, in 1976, Congress passed the Alas- mittee’’) to take whatever action may be ap- mittee on Energy and Natural Resources. ka Natural Gas Transportation Act of 1976 propriate to ensure that the best interests of SENATE RESOLUTION NO. 155 (ANGTA) authorizing the President to select the state are protected; and Whereas, in the winter of 1777-1778 General a route to transport natural gas from ANS to Whereas it is vital for the continued explo- George Washington and the Continental the lower 48 and providing procedures to ex- ration and development of natural gas re- Army camped at Valley Forge to be close to pedite the construction and operation of the sources on the ANS that oil and gas compa- the British Army occupying the City of selected route; and nies that do not have an ownership interest Philadelphia; and Whereas, in 1977, following lengthy public in the pipeline (‘‘Explorers’’) have access to Whereas, during this encampment the vol- hearings and negotiations with Canada, the it on fair and reasonable terms and have the unteer citizen soldiers endured great hard- President issued a decision (‘‘President’s De- ability to seek expansion of the pipeline ships such as cold, hunger, disease and poor cision’’) choosing the southern route and se- when economically and technically feasible; lodging, and they were badly equipped and lecting the predecessor of a consortium of and the Joint Committee adopted rec- supplied; and pipeline companies headed by Foothills Pipe ommendations supporting enactment of Whereas, about 2,000 soldiers died from Lines, Ltd. (Pipeline Companies’’) to con- these provisions in federal law; and pneumonia, typhoid, dysentery and other struct and operate the Alaska segment of the Whereas it is vital for the economic devel- diseases; and project; and opment of Alaska that Alaskans and Alaska Whereas, at Valley Forge the leadership of Whereas the Alaska Gas Producers Pipe- businesses have access to gas from the pipe- General George Washington helped hold to- line Team (‘‘Producers’’) has proposed new line on a fair and reasonable basis, and that gether this group of citizen soldiers; and federal enabling legislation that is currently the Regulatory Commission of Alaska par- Whereas, through the training of General being debated in the United States Senate; ticipate with the Federal Energy Regulatory Washington and Baron von Steuben these ill- and Commission to develop methods to provide equipped volunteers were marshaled into an Whereas the Majority Leader of the United for such access; and the Joint Committee effective fighting force which helped defeat a States Senate has introduced the Energy adopted recommendations supporting enact- military power, the British, at Yorktown in Policy Act of 2002, which contains the Alas- ment of these provisions in federal law; and 1783; and ka Natural Gas Pipeline Act of 2002 (‘‘Pipe- Whereas the Joint Committee has issued Whereas, the first State park was founded line Act’’); and various recommendations requesting that at Valley Forge in 1893; and Whereas the Pipeline Act is not opposed by Congress reaffirm the validity of ANGTA and Whereas, Govenor Samuel Pennypacker of the Pipeline Companies, and they desire cer- modernize it; and Pennsylvania compared a visit to Valley tain amendments to the ANGTA to mod- Whereas natural gas prices in the lower 48 Forge to a pilgrimage and urged every Amer- ernize it; and states periodically fluctuate below those re- ican to visit the site; and Whereas ANGTA granted the State of Alas- quired to adequately cover investment; and Whereas, Valley Forge has been visited by ka ‘‘authoriz[ation] to ship its royalty gas Whereas governmental involvement, in- Presidents of the United States and numer- on the approved transportation system for cluding tax incentives, is essential and quite ous dignitaries from around the world; and use within Alaska and . . . to withdraw such common on major projects to enable private Whereas, in 1975, as part of the United gas from the interstate market for use with- enterprises to undertake the risks; be it States Bicentennial Celebration, the Com- in Alaska,’’ which rights will be impaired if Resolved, That the Alaska State Legisla- monwealth of Pennsylvania conveyed the a northern route is followed; and ture strongly urges the President of the Valley Forge State Park to the United Whereas President Carter’s decision in sup- United States, the United States Congress, States Government; and port of the southern route explicitly recog- and appropriate federal officials to actively Whereas, Act 1975-53 authorizing the con- nized that it could ‘‘supply the energy base support the expeditious construction and op- veyance said the land was to be used for required for long-term economic develop- eration of a natural gas pipeline through ‘‘historical purposes’’; and ment’’ within Alaska and it could supply Alaska along a southern route; and be it fur- Whereas, the development of land pri- natural gas to communities within Alaska ther vately owned within Valley Forge National along the route as well as other Alaska com- Resolved, That the Alaska State Legisla- Historical Park boundaries would violate the munities through local distribution lines, ture strongly urges passage during the first spirit of the conveyance from the Common- and these potential benefits will be lost if a half of 2002 of the Alaska Gas Producers wealth to the United States Government; northern route is followed; and Pipeline Team’s federal enabling legislation, and Whereas the United States Senate has con- so long as it contains a provision similar to Whereas, the Secretary of the Interior has curred with the United States House of Rep- that in H.R. 4 banning the over-the-top route the authority to acquire privately held prop- resentatives to oppose the northern route and the following amendments: erty within the boundaries of the Park; and has expressed its support for the south- (1) provisions for Alaskans and Alaska therefore be it ern route; and businesses that ensure they have access to Resolved, That it is the sense of the Senate Whereas the southern route presents the the pipeline for in-state consumption and of the Commonwealth of Pennsylvania that United States with petrochemical extraction value-added manufacture on a fair and rea- locating a large housing development within opportunities in the United States while the sonable basis and that the Regulatory Com- the boundaries of the Valley Forge National northern route does not; and mission of Alaska is part of the process in Historical Park is against the spirit of the Whereas a northern route pipeline could determining that access; original conveyance to the Federal Govern- not easily be expanded to increase the vol- (2) provisions for access to the pipeline by ment approved by the Commonwealth; and ume of gas when needed; and Explorers on a fair and reasonable basis, in- be it further Whereas the southern route provides petro- cluding a proper open season with fair and Resolved, That the Senate of the Common- chemical extraction opportunities in the reasonable tariffs, and that provide that wealth of Pennsylvania strongly urge the United States and other marketing opportu- they and the State have the ability to obtain Secretary of the Interior to exercise author- nities for ANS gas, including gas to liquids expansion of the pipeline if economically and ity under Public Law 94–337 and acquire the (GTL) and LNG, to the West Coast or Asia; technologically feasible; land to be developed; and be it further and (3) provisions for the reaffirmation of the Resolved, That the Senate of the Common- Whereas it is widely recognized that max- validity of the Alaska Natural Gas Transpor- wealth of Pennsylvania urge the Congress of imum benefit to Alaskans from the commer- tation Act of 1976 and the modernization of the United States to appropriate moneys suf- cialization of ANS natural gas lies in market that Act as necessary; ficient for the purchase of this property; and exposure for that gas, opportunities for in- (4) provisions for federal financial incen- be it further state use of the natural gas, and for partici- tives, including accelerated depreciation and Resolved, That copies of this resolution be pation by Alaskans in construction, mainte- an income tax credit that is designed to pro- transmitted to the President of the United nance, and operation of the gas pipeline vide mitigation of long-term natural gas States, to the presiding officers of each transportation project, and the recovery of price risks and the risks associated with house of Congress and each member of Con- revenue by the state from the development, funding the large capital costs of the project; gress from Pennsylvania and to the Sec- transport, and sale of ANS gas reserves; and the amount of any tax credit should be lim- retary of the Interior. Whereas the Alaska State Legislature has ited in operation to periods when natural gas expressed a preference for the expedited con- prices are extremely low and recovered when POM–272. A Senate joint resolution adopt- struction and operation of a natural gas natural gas prices are high; and ed by the Legislature of the State of Maine pipeline along a southern route and has au- (5) specific provisions declaring that the regarding Acadia National Park; to the Com- thorized funds to conduct various studies re- content of amendments (1)—(4) is not in- mittee on Energy and Natural Resources.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.051 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6361

JOINT RESOLUTION threat of nuclear attack due to the Cold War Report to accompany S. 2673, An original We, your Memorialists, the Members of the between the former Soviet Union and other bill to improve quality and transparency in One Hundred and Twentieth Legislature of communist regimes and the United States; financial reporting and independent audits the State of Maine now assembled in the and and accounting services for public compa- Second Regular Session, most respectfully Whereas, that threat no longer exists and nies, to create a Public Company Accounting present and petition the President of the it is no longer United States policy to pro- Oversight Board, to enhance the standard United States and the Congress of the United hibit trade with a communist country, as we setting process for accounting practices, to States, as follows: already have heavy trade with China and are strengthen the independence of firms that Whereas, Acadia National Park is Maine’s establishing trade with countries like Viet- audit public companies, to increase cor- most visited natural destination, with ap- nam; and porate responsibility and the usefulness of proximately 3 million annual visits, and is Whereas, with complete normalization of corporate financial disclosure, to protect the one of the most heavily used parks in the trade relations, Cuba could become a $1 bil- objectivity and independence of securities National Park System; and lion market for United States agricultural analysts, to improve Securities and Ex- Whereas, Acadia National Park is among producers within 5 years, making it our 3rd change Commission resources and oversight, the most beautiful places in Maine and its largest market in the Americas after Mexico and for other purposes. (Rept. No. 107–205). Atlantic shore represents 25% of the Maine and Canada; and By Mr. BIDEN, from the Committee on coastline that is available for public use and Whereas, agriculture in Maine has devel- Foreign Relations, without amendment: enjoyment; and oped into a diverse industry and could great- S. 2525: A bill to amend the Foreign Assist- Whereas, Acadia National Park generates ly benefit from the market opportunities ance Act of 1961 to increase assistance for $132,000,000 in direct economic benefits to the that free trade with Cuba would provide. foreign countries seriously affected by HIV/ Mount Desert Island region and many addi- Maine is the largest producer of brown eggs AIDS, tuberculosis, and malaria, and for tional millions of dollars in indirect benefits and wild blueberries in the world and ranks other purposes. (Rept. No. 107–206). throughout Maine, making the park’s 45,000 8th in the nation in the production of pota- By Mr. KENNEDY, from the Committee on acres of land and easements among the most toes and 2nd in the production of maple Health, Education, Labor, and Pensions, economically productive natural assets in syrup. It ranks 2nd in New England in milk with an amendment in the nature of a sub- the State; and and livestock production; and stitute: Whereas, Acadia National Park has con- Whereas, rather than depriving Cuba of ag- S. 2059: A bill to amend the Pubic Health ducted a rigorous financial analysis leading ricultural products, the United States trade Service Act to provide for Alzheimer’s dis- to a business plan that demonstrates an av- embargo succeeds only in driving Cuba’s pur- ease research and demonstration grants. erage operating annual budget that supplies chasers to competitors in other countries S. 2649: A bill to provide assistance to com- only 47% of what is needed to operate the that have no trade restrictions; and bat the HIV/AIDS pandemic in developing park in compliance with laws and regula- Whereas, the United States has much to foreign countries. tions; and gain by trading with Cuba, not only in agri- f Whereas, Acadia National Park’s annual culture but also in many other sectors of the operating budget shortfall is the 3rd largest economy and culture; and INTRODUCTION OF BILLS AND calculated to date in the 40 national parks Whereas, the Cuban people also have much JOINT RESOLUTIONS that have undertaken business plans; and to gain and are more likely to move toward Whereas, Acadia National Park’s total an- The following bills and joint resolu- liberty as they see our way of life and the tions were introduced, read the first nual operating budget need is approximately success of our free market system: Now, $14,000,000, and additional millions of dollars and second times by unanimous con- therefore, be it sent, and referred as indicated: are needed for anticipated park operations at Resolved, That We, your Memorialists, urge Schoodic Point; and the Congress of the United States to lift By Mrs. FEINSTEIN: Whereas, Acadia National Park has 121 trade sanctions and establish permanent, S. 2709. An original bill making appropria- full-time equivalent employees but needs 230 normal trade relations with Cuba; and be it tions for military construction, family hous- full-time equivalent employees to execute further ing, and base realignment and closure for the the park’s mission in accordance with laws Resolved, That suitable copies of this reso- Department of Defense for the fiscal year and regulations: Now, therefore, be it ending September 30, 2003, and for other pur- Resolved, That We, your Memorialists, re- lution, duly authenticated by the Secretary of State, be transmitted to the Honorable poses; from the Committee on Appropria- spectfully urge the President of the United tions; placed on the calendar. States and the Congress of the United States George W. Bush, President of the United to increase the annual budget of Acadia Na- States, and to the President of the United f tional Park to amounts that will meet the States Senate, the Speaker of the House of Representatives of the United States and SUBMISSION OF CONCURRENT AND park’s full operational needs, including the SENATE RESOLUTIONS needs of Schoodic Point; and be it further each Member of the Maine Congressional Resolved, That suitable copies of this reso- Delegation. The following concurrent resolutions lution, duly authenticated by the Secretary f and Senate resolutions were read, and of State, be transmitted to the President of referred (or acted upon), as indicated: the United States, the President of the Sen- REPORTS OF COMMITTEES RECEIVED DURING RECESS By Mr. DASCHLE (for himself and Mr. ate of the United States, the Speaker of the LOTT): House of Representatives of the United Under the authority of the order of S. Res. 299. A resolution to authorize testi- States and to each Member of the Maine the Senate of June 26, 2002, the fol- mony, document production, and legal rep- Congressional Delegation. lowing reports of committees were sub- resentation in City of Columbus v. Jac- mitted on July 3, 2002: queline Downing, et al and City of Columbus POM–273. A joint resolution adopted by the v. Vincent Ramos; considered and agreed to. Legislature of the State of Maine relative to By Mrs. FEINSTEIN, from the Committee Cuba; to the Committee on Banking, Hous- on Appropriations, without amendment: f ing, and Urban Affairs. S. 2709: An original bill making appropria- ADDITIONAL COSPONSORS JOINT RESOLUTION tions for military construction, family hous- S. 917 We, your Memorialists, the Members of the ing, and base realignment and closure for the One Hundred and Twentieth Legislature of Department of Defense for the fiscal year At the request of Ms. COLLINS, the the State of Maine now assembled in the ending September 30, 2003, and for other pur- names of the Senator from Maine (Ms. Second Regular Session, most respectfully poses. (Rept. No. 107–202). SNOWE) and the Senator from Hawaii present and petition the Congress of the By Mr. BINGAMAN, from the Committee (Mr. INOUYE) were added as cosponsors United States as follows: on Energy and Natural Resources, with of S. 917, a bill to amend the Internal Whereas, the relationship between the amendments: Revenue Code of 1986 to exclude from S. 1946: A bill to amend the National Trails United States and Cuba has long been gross income amounts received on ac- marked by tension and confrontation, and System Act to designate the Old Spanish further heightening this hostility is the 40- Trail as a National Historic Trail. (Rept. No. count of claims based on certain un- year-old United States trade embargo 107–203). lawful discrimination and to allow in- against the island nation that remains the By Mr. BINGAMAN, from the Committee come averaging for backpay and longest-standing embargo in modern history; on Energy and Natural Resources, with an frontpay awards received on account of and amendment: such claims, and for other purposes. H.R. 640: A bill to adjust the boundaries of Whereas, there has been significant change S. 952 in relations between Cuba and the United Santa Monica Mountains National Recre- At the request of Mr. INHOFE, his States since 1962, when the prohibitive trade ation Area, and for other purposes. (Rept. sanctions were imposed; and No. 107–204). name was withdrawn as a cosponsor of Whereas, the export ban was imposed dur- By Mr. SARBANES, from the Committee S. 952, a bill to provide collective bar- ing a period of much fear caused by the on Banking, Housing, and Urban Affairs: gaining rights for public safety officers

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.054 pfrm12 PsN: S08PT1 S6362 CONGRESSIONAL RECORD — SENATE July 8, 2002 employed by States or their political sons who alter or destroy evidence in S. 2566 subdivisions. certain Federal investigations or de- At the request of Mr. KENNEDY, the S. 999 fraud investors of publicly traded secu- name of the Senator from Maine (Ms. At the request of Mr. BINGAMAN, the rities, to disallow debts incurred in vio- COLLINS) was added as a cosponsor of S. name of the Senator from Maryland lation of securities fraud laws from 2566, a bill to improve early learning (Ms. MIKULSKI) was added as a cospon- being discharged in bankruptcy, to pro- opportunities and promote school pre- sor of S. 999, a bill to amend title 10, tect whistleblowers against retaliation paredness, and for other purposes. United States Code, to provide for a by their employers, and for other pur- S. 2613 Korea Defense Service Medal to be poses. At the request of Mr. LIEBERMAN, the issued to members of the Armed Forces S. 2027 names of the Senator from South Caro- who participated in operations in At the request of Mr. DURBIN, the lina (Mr. HOLLINGS), the Senator from Korea after the end of the Korean War. name of the Senator from Maine (Ms. Arkansas (Mr. HUTCHINSON), and the S. 1115 COLLINS) was added as a cosponsor of S. Senator from Mississippi (Mr. COCH- At the request of Mr. KENNEDY, the 2027, a bill to implement effective RAN) were added as cosponsors of S. name of the Senator from Louisiana measures to stop trade in conflict dia- 2613, a bill to amend section 507 of the (Ms. LANDRIEU) was added as a cospon- monds, and for other purposes. Omnibus Parks and Public Lands Man- sor of S. 1115, a bill to amend the Pub- S. 2035 agement Act of 1996 to authorize addi- lic Health Service Act with respect to At the request of Mr. JEFFORDS, the tional appropriations for historically making progress toward the goal of name of the Senator from Minnesota black colleges and universities, to de- eliminating tuberculosis, and for other (Mr. WELLSTONE) was added as a co- crease the cost-sharing requirement re- purposes. sponsor of S. 2035, a bill to provide for lating to the additional appropriations, S. 1329 the establishment of health plan pur- and for other purposes. At the request of Mr. JEFFORDS, the chasing alliances. S. 2642 name of the Senator from New York S. 2055 At the request of Mr. NELSON of Flor- (Mrs. CLINTON) was added as a cospon- At the request of Ms. CANTWELL, the ida, the name of the Senator from New sor of S. 1329, a bill to amend the Inter- name of the Senator from Virginia (Mr. Jersey (Mr. CORZINE) was added as a co- nal Revenue Code of 1986 to provide a ALLEN) was added as a cosponsor of S. sponsor of S. 2642, a bill to require tax incentive for land sales for con- 2055, a bill to make grants to train sex- background checks of alien flight servation purposes. ual assault nurse examiners, law en- school applicants without regard to the S. 1339 forcement personnel, and first respond- maximum certificated weight of the At the request of Mr. CAMPBELL, the ers in the handling of sexual assault aircraft for which they seek training, names of the Senator from Wisconsin cases, to establish minimum standards and to require a report on the effective- (Mr. FEINGOLD) and the Senator from for forensic evidence collection kits, to ness of the requirement. Pennsylvania (Mr. SPECTER) were carry out DNA analyses of samples S. 2647 added as cosponsors of S. 1339, a bill to from crime scenes, and for other pur- At the request of Ms. SNOWE, the amend the Bring Them Home Alive Act poses. name of the Senator from California of 2000 to provide an asylum program S. 2215 (Mrs. FEINSTEIN) was added as a co- with regard to American Persian Gulf At the request of Mrs. BOXER, the sponsor of S. 2647, a bill to require that War POW/MIAs, and for other purposes. name of the Senator from Iowa (Mr. activities carried out by the United S. 1940 HARKIN) was added as a cosponsor of S. States in Afghanistan relating to gov- At the request of Mr. LEVIN, the 2215, a bill to halt Syrian support for ernance, reconstruction and develop- name of the Senator from Wisconsin terrorism, end its occupation of Leb- ment, and refugee relief and assistance (Mr. FEINGOLD) was added as a cospon- anon, stop its development of weapons will support the basic human rights of sor of S. 1940, a bill to amend the Inter- of mass destruction, cease its illegal women and women’s participation and nal Revenue Code of 1986 to provide importation of Iraqi oil, and by so leadership in these areas. that corporate tax benefits from stock doing hold Syria accountable for its S. 2649 option compensation expenses are al- role in the Middle East, and for other At the request of Mr. KENNEDY, the lowed only to the extent such expenses purposes. name of the Senator from Maryland are included in a corporation’s finan- S. 2239 (Mr. SARBANES) was added as a cospon- cial statements. At the request of Mr. SARBANES, the sor of S. 2649, a bill to provide assist- S. 1986 name of the Senator from Alaska (Mr. ance to combat the HIV/AIDS pan- At the request of Mr. ROBERTS, the STEVENS) was added as a cosponsor of demic in developing foreign countries. name of the Senator from New Mexico S. 2239, a bill to amend the National S. RES. 264 (Mr. DOMENICI) was added as a cospon- Housing Act to simplify the downpay- At the request of Mr. KERRY, the sor of S. 1986, a bill to amend the Inter- ment requirements for FHA mortgage names of the Senator from New Hamp- modal Surface Transportation Effi- insurance for single family home- shire (Mr. GREGG), the Senator from ciency Act of 1991 to identify a route buyers. Utah (Mr. HATCH), the Senator from that passes through the States of S. 2244 Rhode Island (Mr. REED), the Senator Texas, New Mexico, Oklahoma, and At the request of Mr. DORGAN, the from Connecticut (Mr. DODD), the Sen- Kansas as a high priority corridor on name of the Senator from Wisconsin ator from Massachusetts (Mr. KEN- the National Highway System. (Mr. FEINGOLD) was added as a cospon- NEDY), and the Senator from Ohio (Mr. S. 2009 sor of S. 2244, a bill to permit commer- DEWINE) were added as cosponsors of S. At the request of Mr. DURBIN, the cial importation of prescription drugs Res. 264, a resolution expressing the name of the Senator from Delaware from Canada, and for other purposes. sense of the Senate that small business (Mr. BIDEN) was added as a cosponsor of S. 2246 participation is vital to the defense of S. 2009, a bill to amend the Public At the request of Mr. DODD, the our Nation, and that Federal, State, Health Service Act to provide services names of the Senator from Massachu- and local governments should aggres- for the prevention of family violence. setts (Mr. KENNEDY), the Senator from sively seek out and purchase innova- S. 2010 Georgia (Mr. CLELAND), and the Sen- tive technologies and services from At the request of Mr. LEAHY, the ator from North Carolina (Mr. ED- American small businesses to help in names of the Senator from Massachu- WARDS) were added as cosponsors of S. homeland defense and the fight against setts (Mr. KERRY), the Senator from 2246, a bill to improve access to printed terrorism. Georgia (Mr. MILLER), and the Senator instructional materials used by blind S. RES. 284 from Arizona (Mr. MCCAIN) were added or other persons with print disabilities At the request of Mr. BIDEN, the as cosponsors of S. 2010, a bill to pro- in elementary and secondary schools, name of the Senator from Indiana (Mr. vide for criminal prosecution of per- and for other purposes. LUGAR) was added as a cosponsor of S.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.023 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6363 Res. 284, a resolution expressing sup- AMENDMENTS SUBMITTED AND for wildland firefighting and forest res- port for ‘‘National Night Out’’ and re- PROPOSED toration as well as ongoing implemen- questing that the President make SA 4173. Mr. SARBANES proposed an tation of the National Fire Plan. neighborhood crime prevention, com- amendment to the bill S. 2673, to improve Because of the limited time available munity policing, and reduction of quality and transparency in financial report- for the hearing, witnesses may testify school crime important priorities of ing and independent audits and accounting by invitation only. However, those the Administration. services for public companies, to create a wishing to submit written testimony Public Company Accounting Oversight S. CON. RES. 122 for the hearing record should send two Board, to enhance the standard setting proc- At the request of Ms. SNOWE, the copies of their testimony to the Com- ess for accounting practices, to strengthen mittee on Energy and Natural Re- names of the Senator from Massachu- the independence of firms that audit public setts (Mr. KERRY) and the Senator from companies, to increase corporate responsi- sources, United States Senate, 312 Missouri (Mrs. CARNAHAN) were added bility and the usefulness of corporate finan- Dirksen Senate Office Building, Wash- as cosponsors of S. Con. Res. 122, a con- cial disclosure, to protect the objectivity ington, DC 20510. current resolution expressing the sense and independence of securities analysts, to For further information, please con- of Congress that security, reconcili- improve Securities and Exchange Commis- tact Kira Finkler of the committee ation, and prosperity for all Cypriots sion resources and oversight, and for other staff at 202/224–8164. purposes. can be best achieved within the context f f of membership in the European Union PRIVILEGES OF THE FLOOR which will provide significant rights TEXT OF AMENDMENTS and obligations for all Cypriots, and for Mr. GRAMM. Mr. President, I ask other purposes. SA 4173. Mr. SARBANES proposed an unanimous consent that Maureen amendment to the bill S. 2673, to im- Kelly, from Senator DOMENICI’s staff, f prove quality and transparency in fi- have access to the floor during this nancial reporting and independent au- pending bill. SUBMITTED RESOLUTIONS dits and accounting services for public The PRESIDING OFFICER. Without companies, to create a Public Company objection, it is so ordered. Accounting Oversight Board, to en- Mr. SARBANES. Mr. President, I ask SENATE RESOLUTION 299—TO AU- hance the standard setting process for unanimous consent that Steven THORIZE TESTIMONY, DOCU- accounting practices, to strengthen the Dettelbach, a detailee to the Com- MENT PRODUCTION AND LEGAL independence of firms that audit public mittee on the Judiciary, and Jack Tay- REPRESENTATION IN CITY OF companies, to increase corporate re- lor, a fellow with Senator TIM JOHN- COLUMBUS V. JACQUELINE sponsibility and the usefulness of cor- SON’s office, be granted the privilege of DOWNING, ET AL. AND CITY OF porate financial disclosure, to protect the floor during the Senate’s consider- COLUMBUS V. VINCENT RAMOS the objectivity and independence of se- ation of the pending matter, S. 2673. Mr. DASHLE (for himself and Mr. curities analysts, to improve Securities The PRESIDING OFFICER. Without LOTT) submitted the following resolu- and Exchange Commission resources objection, it is so ordered. tion; which was considered and agreed and oversight, and for other purposes; f to: as follows: NATIONAL DEFENSE AUTHORIZA- S. RES. 299 On page 65, line 11, strike ‘‘All’’ and insert ‘‘Subject to the availability in advance in an TION ACT FOR FISCAL YEAR 2003 Whereas, in the cases of City of Columbus appropriations Act, and notwithstanding v. Jacqueline Downing, et al., Nos. 2002 CR B On June 27, 2002, the Senate amended subsection (h), all’’. 01082–25, 010835–37 and City of Columbus v. and passed S. 2514, as follows: On page 76, between lines 16 and 17, insert Vincent Ramos, No. 2002 CR B 010835–37 pend- the following: S. 2514 ing in the Franklin County Municipal Court (d) CONFORMING AMENDMENT.—Section Be it enacted by the Senate and House of Rep- in the State of Ohio, testimony has been re- 10A(f) of the Securities Exchange Act of 1934 resentatives of the United States of America in quested from Michael Dawson, an employee (15 U.S.C. 78k(f)) is amended— Congress assembled, in the office of Senator Mike DeWine; (1) by striking ‘‘DEFINITION’’ and inserting SECTION 1. SHORT TITLE. Whereas, pursuant to sections 703(a) and ‘‘DEFINITIONS’’; and 704(a)(2) of the Ethics in Government Act of This Act may be cited as the ‘‘National De- (2) by adding at the end the following: ‘‘As 1978, 2 U.S.C. §§ 288b(a) and 288c(a)(2), the fense Authorization Act for Fiscal Year used in this section, the term ‘issuer’ means Senate may direct its counsel to represent 2003’’. an issuer (as defined in section 3), the securi- employees of the Senate with respect for tes- SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; ties of which are registered under section 12, timony relating to their official responsibil- TABLE OF CONTENTS. or that is required to file reports pursuant to ities; (a) DIVISIONS.—This Act is organized into section 15(d), or that will required to file Whereas, by the privileges of the Senate of three divisions as follows: such reports at the end of a fiscal year of the the United States and Rule XI of the Stand- (1) Division A—Department of Defense Au- issuer in which a registration statement ing Rules of the Senate, no evidence under thorizations. filed by such issuer has become effective pur- the control or in the possession of the Senate (2) Division B—Military Construction Au- suant to the Securities Act of 1933 (15 U.S.C. may, by the judicial or administrative proc- thorizations. 77a et seq.), unless its securities are reg- ess, be taken from such control or possession (3) Division C—Department of Energy Na- istered under section 12 of this title on or be- but by permission of the Senate; tional Security Authorizations and Other fore the end of such fiscal year.’’. Whereas, when it appears that evidence Authorizations. under the control or in the possession of the f (b) TABLE OF CONTENTS.—The table of con- Senate may promote the administration of tents for this Act is as follows: justice, the Senate will take such action as NOTICES OF HEARINGS/MEETINGS Sec. 1. Short title. will promote the ends of justice consistent COMMITTEE ON ENERGY AND NATURAL Sec. 2. Organization of Act into divisions; with the privilege of the Senate: Now, there- RESOURCES table of contents. fore, be it Resolved, That Michael Dawson Mr. BINGAMAN. Mr. President, I Sec. 3. Congressional defense committees and any other employee of the Senate defined. DeWine’s office from whom testimony may would like to announce for the information of the Senate and the public DIVISION A—DEPARTMENT OF DEFENSE be required are authorized to testify and AUTHORIZATIONS produce documents in the case of City of Co- that a hearing has been scheduled be- TITLE I—PROCUREMENT lumbus v. Jacqueline Downing, et al., and fore the Committee on Energy and Nat- City of Columbus v. Vincent Ramos, except ural Resources. Subtitle A—Authorization of Appropriations concerning matters for which a privilege The hearing will take place on Tues- Sec. 101. Army. should be asserted. day, July 16, at 9:30 a.m. in room 366 of Sec. 102. Navy and Marine Corps. SEC. 2. The Senate Legal Counsel is author- the Dirksen Senate Office Building in Sec. 103. Air Force. ized to represent Michael Dawson and any Sec. 104. Defense-wide activities. other employee of Senator DeWine’s office in Washington, D.C. Sec. 105. Defense Inspector General. connection with the testimony and docu- The purpose of the hearing is to re- Sec. 106. Chemical agents and munitions de- ment production authorized in section one of ceive testimony on the Administra- struction, defense. this resolution. tion’s plans to request additional funds Sec. 107. Defense health programs.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0655 E:\CR\FM\A08JY6.023 pfrm12 PsN: S08PT1 S6364 CONGRESSIONAL RECORD — SENATE July 8, 2002 Subtitle B—Army Programs Sec. 227. Reports on flight testing of Subtitle D—Other Matters Sec. 111. Pilot program on sales of manufac- Ground-based Midcourse na- Sec. 341. Use of humanitarian and civic as- tured articles and services of tional missile defense system. sistance funds for reserve com- certain Army industrial facili- Subtitle D—Improved Management of De- ponent members of Special Op- ties without regard to avail- partment of Defense Test and Evaluation erations Command engaged in ability from domestic sources. Facilities activities relating to clearance Subtitle C—Navy Programs Sec. 231. Department of Defense Test and of landmines. Sec. 342. Calculation of five-year period of Sec. 121. Integrated bridge system. Evaluation Resource Enter- Sec. 122. Extension of multiyear procure- prise. limitation for Navy-Marine ment authority for DDG–51 Sec. 232. Transfer of testing funds from pro- Corps Intranet contract. Sec. 343. Reimbursement for reserve compo- class destroyers. gram accounts to infrastruc- Sec. 123. Maintenance of scope of cruiser ture accounts. nent intelligence support. Sec. 344. Rebate agreements under the spe- conversion of Ticonderoga class Sec. 233. Increased investment in test and cial supplemental food pro- AEGIS cruisers. evaluation facilities. Sec. 124. Marine Corps live fire range im- Sec. 234. Uniform financial management gram. Sec. 345. Logistics support and services for provements. system for Department of De- fense test and evaluation facili- weapon systems contractors. Subtitle D—Air Force Programs ties. Sec. 346. Continuation of Arsenal support Sec. 131. C–130J aircraft program. Sec. 235. Test and evaluation workforce im- program initiative. Sec. 132. Pathfinder programs. provements. Sec. 347. Two-year extension of authority of Sec. 133. Oversight of acquisition for defense Sec. 236. Compliance with testing require- the Secretary of Defense to en- space programs. ments. gage in commercial activities Sec. 134. Leasing of tanker aircraft. Sec. 237. Report on implementation of De- as security for intelligence col- Sec. 135. Compass Call program. fense Science Board rec- lection activities abroad. Sec. 136. Sense of Congress regarding as- ommendations. Sec. 348. Installation and connection policy sured access to space. Subtitle E—Other Matters and procedures regarding De- Sec. 137. Mobile emergency broadband sys- Sec. 241. Pilot programs for revitalizing De- fense Switch Network. tem. Sec. 349. Engineering study and environ- partment of Defense labora- mental analysis of road modi- TITLE II—RESEARCH, DEVELOPMENT, tories. TEST, AND EVALUATION Sec. 242. Technology transition initiative. fications in vicinity of Fort Subtitle A—Authorization of Appropriations Sec. 243. Encouragement of small businesses Belvoir, Virginia. Sec. 350. Extension of work safety dem- Sec. 201. Authorization of appropriations. and nontraditional defense con- onstration program. Sec. 202. Amount for science and tech- tractors to submit proposals po- Sec. 351. Lift support for mine warfare ships nology. tentially beneficial for com- and other vessels. Sec. 203. Defense health programs. bating terrorism. Sec. 244. Vehicle fuel cell program. Sec. 352. Navy data conversion activities. Subtitle B—Program Requirements, Sec. 245. Defense nanotechnology research TITLE IV—MILITARY PERSONNEL Restrictions, and Limitations and development program. AUTHORIZATIONS Sec. 211. Basic seismic research program for Sec. 246. Activities and assessment of the Subtitle A—Active Forces support of national require- Defense Experimental Program ments for monitoring nuclear Sec. 401. End strengths for active forces. to Stimulate Competitive Re- Sec. 402. Authority to increase strength and explosions. search. Sec. 212. Advanced SEAL Delivery System. grade limitations to account Sec. 247. Four-year extension of authority of for reserve component members Sec. 213. Army experimentation program re- DARPA to award prizes for ad- garding design of the objective on active duty in support of a vanced technology achieve- contingency operation. force. ments. Sec. 214. Reallocation of amount available Sec. 403. Increased allowance for number of TITLE III—OPERATION AND for indirect fire programs. Marine Corps general officers MAINTENANCE Sec. 215. Laser welding and cutting dem- on active duty in grades above onstration. Subtitle A—Authorization of Appropriations major general. Sec. 216. Analysis of emerging threats. Sec. 301. Operation and maintenance fund- Sec. 404. Increase in authorized strengths for Sec. 217. Prohibition on transfer of Medical ing. Marine Corps officers on active Free Electron Laser program. Sec. 302. Working capital funds. duty in the grade of colonel. Sec. 218. Demonstration of renewable energy Sec. 303. Armed Forces Retirement Home. Subtitle B—Reserve Forces use. Sec. 304. Range Enhancement Initiative Sec. 411. End strengths for Selected Reserve. Sec. 219A. Radar power technology for the Fund. Sec. 412. End strengths for Reserves on ac- Army. Sec. 305. Navy Pilot Human Resources Call tive duty in support of the re- Sec. 219B. Critical infrastructure protection. Center, Cutler, Maine. serves. Sec. 306. National Army Museum, Fort Sec. 219C. Theater Aerospace Command and Sec. 413. End strengths for military techni- Belvoir, Virginia. Control Simulation Facility up- cians (dual status). Sec. 307. Disposal of obsolete vessels of the grades. Sec. 414. Fiscal year 2003 limitations on non- National Defense Reserve Fleet. Sec. 219D. DDG optimized manning initia- dual status technicians. Subtitle B—Environmental Provisions tive. Subtitle C—Authorization of Appropriations Sec. 219E. Agroterrorist attacks. Sec. 311. Enhancement of authority on coop- Sec. 421. Authorization of appropriations for Sec. 219F. Very high speed support vessel for erative agreements for environ- military personnel. the Army. mental purposes. Sec. 219G. Full-scale high-speed permanent Sec. 312. Modification of authority to carry TITLE V—MILITARY PERSONNEL POLICY magnet generator. out construction projects for Subtitle A—Officer Personnel Policy Sec. 219H. Aviation-shipboard information environmental responses. Sec. 501. Extension of certain requirements technology initiative. Sec. 313. Increased procurement of environ- and exclusions applicable to Sec. 219I. Aerospace Relay Mirror System mentally preferable products. service of general and flag offi- (ARMS) Demonstration. Sec. 314. Cleanup of unexploded ordnance on cers on active duty in certain Sec. 219J. Littoral ship program. Kaho’olawe Island, Hawaii. joint duty assignments. Subtitle C—Missile Defense Programs Subtitle C—Defense Dependents’ Education Sec. 502. Extension of authority to waive re- Sec. 221. Annual operational assessments Sec. 331. Assistance to local educational quirement for significant joint and reviews of ballistic missile agencies that benefit depend- duty experience for appoint- defense program. ents of members of the Armed ment as a chief of a reserve Sec. 222. Report on Midcourse Defense pro- Forces and Department of De- component or a National Guard gram. fense civilian employees. director. Sec. 223. Report on Air-based Boost pro- Sec. 332. Impact aid for children with severe Sec. 503. Repeal of limitation on authority gram. disabilities. to grant certain officers a waiv- Sec. 224. Report on Theater High Altitude Sec. 333. Options for funding dependent sumer of required sequence for joint Area Defense program. mer school programs. professional military education Sec. 225. References to new name for Bal- Sec. 334. Comptroller General study of ade- and joint duty assignment. listic Missile Defense Organiza- quacy of compensation provided Sec. 504. Extension of temporary authority tion. for teachers in the Department for recall of retired aviators. Sec. 226. Limitation on use of funds for nu- of Defense Overseas Depend- Sec. 505. Increased grade for heads of nurse clear armed interceptors. ents’ Schools. corps.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0655 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6365 Sec. 506. Reinstatement of authority to re- Sec. 617. Assignment incentive pay. Sec. 708. Extension of temporary authority duce service requirement for re- Sec. 618. Increased maximum amounts for for entering into personal serv- tirement in grades above O–4. prior service enlistment bonus. ices contracts for the performance of health care responsibil- Subtitle B—Reserve Component Personnel Subtitle C—Travel and Transportation ities for the Armed Forces at Policy Allowances locations other than military Sec. 511. Time for commencement of initial Sec. 631. Deferral of travel in connection period of active duty for train- medical treatment facilities. with leave between consecutive Sec. 709. Restoration of previous policy re- ing upon enlistment in reserve overseas tours. component. garding restrictions on use of Sec. 632. Transportation of motor vehicles Sec. 512. Authority for limited extension of Department of Defense medical for members reported missing. medical deferment of manda- facilities. tory retirement or separation Sec. 633. Destinations authorized for Gov- Sec. 710. Health care under TRICARE for of reserve component officer. ernment paid transportation of TRICARE beneficiaries receiv- Sec. 513. Repeal of prohibition on use of Air enlisted personnel for rest and ing medical care as veterans Force Reserve AGR personnel recuperation upon extending from the Department of Vet- for Air Force base security duty at designated overseas lo- erans Affairs. functions. cations. TITLE VIII—ACQUISITION POLICY, ACQUI- Sec. 634. Vehicle storage in lieu of transpor- Subtitle C—Education and Training SITION MANAGEMENT, AND RELATED tation to certain areas of the MATTERS Sec. 521. Increase in authorized strengths for United States outside conti- the service academies. Subtitle A—Major Defense Acquisition nental United States. Programs Subtitle D—Decorations, Awards, and Subtitle D—Retirement and Survivor Benefit Commendations Sec. 801. Buy-to-budget acquisition of end Matters items. Sec. 531. Waiver of time limitations for Sec. 802. Report to Congress on incremental award of certain decorations to Sec. 641. Payment of retired pay and com- acquisition of major systems. certain persons. pensation to disabled military Sec. 803. Pilot program for spiral develop- Sec. 532. Korea Defense Service Medal. retirees. Sec. 642. Increased retired pay for enlisted ment of major systems. Subtitle E—National Call to Service Reserves credited with extraor- Sec. 804. Improvement of software acquisi- Sec. 541. Enlistment incentives for pursuit dinary heroism. tion processes. of skills to facilitate national Sec. 643. Expanded scope of authority to Sec. 805. Independent technology readiness service. waive time limitations on assessments. Sec. 542. Military recruiter access to insti- claims for military personnel Sec. 806. Timing of certification in connec- tutions of higher education. benefits. tion with waiver of surviv- Subtitle F—Other Matters ability and lethality testing re- Subtitle E—Other Matters Sec. 551. Biennial surveys on racial, ethnic, quirements. and gender issues. Sec. 651. Additional authority to provide as- Subtitle B—Procurement Policy Sec. 552. Leave required to be taken pending sistance for families of mem- Improvements review of a recommendation for bers of the Armed Forces. Sec. 811. Performance goals for contracting removal by a board of inquiry. Sec. 652. Time limitation for use of Mont- for services. Sec. 553. Stipend for participation in funeral gomery GI Bill entitlement by Sec. 812. Grants of exceptions to cost or honors details. members of the Selected Re- pricing data certification re- Sec. 554. Wear of abayas by female members serve. quirements and waivers of cost of the Armed Forces in Saudi Sec. 653. Status of obligation to refund edu- accounting standards. Arabia. cational assistance upon failure Sec. 813. Extension of requirement for an- TITLE VI—COMPENSATION AND OTHER to participate satisfactorily in nual report on defense commer- PERSONNEL BENEFITS Selected Reserve. cial pricing management im- Subtitle A—Pay and Allowances Sec. 654. Prohibition on acceptance of hono- provement. Sec. 601. Increase in basic pay for fiscal year raria by personnel at certain Sec. 814. Internal controls on the use of pur- 2003. Department of Defense schools. chase cards. Sec. 602. Rate of basic allowance for subsist- Sec. 655. Rate of educational assistance Sec. 815. Assessment regarding fees paid for ence for enlisted personnel oc- under Montgomery GI Bill of acquisitions under other agen- cupying single Government dependents transferred entitle- cies’ contracts. quarters without adequate ment by members of the Armed Sec. 816. Pilot program for transition to fol- availability of meals. Forces with critical skills. low-on contracts for certain Sec. 603. Basic allowance for housing in Sec. 656. Payment of interest on student prototype projects. cases of low-cost or no-cost loans. Sec. 817. Waiver authority for domestic moves. Sec. 657. Modification of amount of back pay source or content requirements. Sec. 604. Temporary authority for higher for members of Navy and Ma- Subtitle C—Other Matters rates of partial basic allowance rine Corps selected for pro- Sec. 821. Extension of the applicability of for housing for certain mem- motion while interned as pris- certain personnel demonstra- bers assigned to housing under oners of war during World War tion project exceptions to an alternative authority for acqui- II to take into account changes acquisition workforce dem- sition and improvement of mili- in Consumer Price Index. onstration project. tary housing. TITLE VII—HEALTH CARE Sec. 822. Moratorium on reduction of the de- Subtitle B—Bonuses and Special and Sec. 701. Eligibility of surviving dependents fense acquisition and support Incentive Pays for TRICARE dental program workforce. Sec. 823. Extension of contract goal for Sec. 611. One-year extension of certain benefits after discontinuance of small disadvantaged businesses bonus and special pay authori- former enrollment. and certain institutions of ties for reserve forces. Sec. 702. Advance authorization for inpa- higher education. Sec. 612. One-year extension of certain tient mental health services. bonus and special pay authori- Sec. 824. Mentor-Protege Program eligi- Sec. 703. Continued TRICARE eligibility of ties for certain health care pro- bility for HUBZone small busi- dependents residing at remote fessionals. ness concerns and small busi- locations after departure of Sec. 613. One-year extension of special pay ness concerns owned and con- sponsors for unaccompanied as- and bonus authorities for nu- trolled by service-disabled vet- signments. clear officers. erans. Sec. 614. One-year extension of other bonus Sec. 704. Approval of medicare providers as Sec. 825. Repeal of requirements for certain and special pay authorities. TRICARE providers. reviews by the Comptroller Sec. 615. Increased maximum amount pay- Sec. 705. Claims information. General. able as multiyear retention Sec. 706. Department of Defense Medicare- Sec. 826. Multiyear procurement authority bonus for medical officers of Eligible Retiree Health Care for purchase of dinitrogen te- the Armed Forces. Fund. troxide, hydrazine, and hydra- Sec. 616. Increased maximum amount pay- Sec. 707. Technical corrections relating to zine-related products. able as incentive special pay for transitional health care for Sec. 827. Multiyear procurement authority medical officers of the Armed members separated from active for environmental services for Forces. duty. military installations.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0655 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 S6366 CONGRESSIONAL RECORD — SENATE July 8, 2002 Sec. 828. Increased maximum amount of as- Sec. 1032. Annual report on weapons to de- Sec. 1103. Extension of cost-sharing author- sistance for tribal organiza- feat hardened and deeply buried ity for continued FEHBP cov- tions or economic enterprises targets. erage of certain persons after carrying out procurement tech- Sec. 1033. Revision of date of annual report separation from employment. nical assistance programs in on counterproliferation activi- Sec. 1104. Eligibility of nonappropriated two or more service areas. ties and programs. funds employees to participate Sec. 829. Authority for nonprofit organiza- Sec. 1034. Quadrennial quality of life review. in the Federal employees long- tions to self-certify eligibility Sec. 1035. Reports on efforts to resolve term care insurance program. for treatment as qualified orga- whereabouts and status of Cap- Sec. 1105. Increased maximum period of ap- nizations employing severely tain Michael Scott Speicher, pointment under the experi- disabled under Mentor-Protege United States Navy. mental personnel program for Program. Sec. 1036. Report on efforts to ensure ade- scientific and technical per- Sec. 830. Report on effects of Army Con- quacy of fire fighting staffs at sonnel. tracting Agency. military installations. Sec. 1106. Qualification requirements for TITLE IX—DEPARTMENT OF DEFENSE Sec. 1037. Report on designation of certain employment in Department of ORGANIZATION AND MANAGEMENT Louisiana highway as defense Defense professional accounting access road. Sec. 901. Time for submittal of report on positions. Sec. 1038. Plan for five-year program for en- Sec. 1107. Housing benefits for unaccom- Quadrennial Defense Review. Sec. 902. Increased number of Deputy Com- hancement of measurement and panied teachers required to live mandants authorized for the signatures intelligence capa- at Guantanamo Bay Naval Sta- Marine Corps. bilities. tion, Cuba. Sec. 903. Base operating support for Fisher Sec. 1039. Report on volunteer services of TITLE XII—MATTERS RELATING TO Houses. members of the reserve compo- OTHER NATIONS nents in emergency response to Sec. 904. Prevention and mitigation of corro- Subtitle A—Cooperative Threat Reduction the terrorist attacks of Sep- sion. With States of the Former Soviet Union tember 11, 2001. Sec. 905. Western Hemisphere Institute for Sec. 1201. Specification of Cooperative Security Cooperation. Sec. 1040. Biannual reports on contributions to proliferation of weapons of Threat Reduction programs and Sec. 906. Veterinary Corps of the Army. funds. Sec. 907. Under Secretary of Defense for In- mass destruction and delivery systems by countries of pro- Sec. 1202. Funding allocations. telligence. Sec. 1203. Authorization of use of Coopera- liferation concern. TITLE X—GENERAL PROVISIONS tive Threat Reduction funds for Subtitle A—Financial Matters Subtitle D—Homeland Defense projects and activities outside Sec. 1001. Transfer authority. Sec. 1041. Homeland security activities of the former Soviet Union. Sec. 1002. Reallocation of authorizations of the National Guard. Sec. 1204. Waiver of limitations on assist- appropriations from ballistic Sec. 1042. Conditions for use of full-time Re- ance under programs to facili- missile defense to shipbuilding. serves to perform duties relat- tate cooperative threat reduc- Sec. 1003. Authorization of appropriations ing to defense against weapons tion and nonproliferation. for continued operations for the of mass destruction. Sec. 1205. Russian tactical nuclear weapons. war on terrorism. Sec. 1043. Weapon of mass destruction de- Subtitle B—Other Matters fined for purposes of the au- Sec. 1004. Authorization of emergency sup- Sec. 1211. Administrative support and serv- thority for use of Reserves to plemental appropriations for ices for coalition liaison offi- perform duties relating to de- fiscal year 2002. cers. Sec. 1005. United States contribution to fense against weapons of mass Sec. 1212. Use of Warsaw Initiative funds for NATO common-funded budgets destruction. travel of officials from partner Sec. 1044. Report on Department of Defense in fiscal year 2003. countries. Sec. 1006. Development and implementation homeland defense activities. Sec. 1213. Support of United Nations-spon- Sec. 1045. Strategy for improving prepared- of financial management enter- sored efforts to inspect and ness of military installations prise architecture. monitor Iraqi weapons activi- for incidents involving weapons Sec. 1007. Departmental accountable offi- ties. cials in the Department of De- of mass destruction. Sec. 1214. Arctic and Western Pacific Envi- fense. Subtitle E—Other Matters ronmental Cooperation Pro- Sec. 1008. Department-wide procedures for Sec. 1061. Continued applicability of expir- gram. establishing and liquidating ing Governmentwide informa- Sec. 1215. Department of Defense HIV/AIDS personal pecuniary liability. tion security requirements to prevention assistance program. Sec. 1009. Travel card program integrity. the Department of Defense. Sec. 1216. Monitoring implementation of the Sec. 1010. Clearance of certain transactions Sec. 1062. Acceptance of voluntary services 1979 United States-China Agree- recorded in Treasury suspense of proctors for administration ment on Cooperation in Science accounts and resolution of cer- of Armed Services Vocational and Technology. tain check issuance discrep- Aptitude Battery. DIVISION B—MILITARY CONSTRUCTION ancies. Sec. 1063. Extension of authority for Sec- AUTHORIZATIONS Sec. 1011. Additional amount for ballistic retary of Defense to sell air- Sec. 2001. Short title. missile defense or combating craft and aircraft parts for use TITLE XXI—ARMY terrorism in accordance with in responding to oil spills. national security priorities of Sec. 1064. Amendments to Impact Aid pro- Sec. 2101. Authorized Army construction the President. gram. and land acquisition projects. Sec. 1012. Availability of amounts for Or- Sec. 1065. Disclosure of information on Ship- Sec. 2102. Family housing. egon Army National Guard for board Hazard and Defense Sec. 2103. Improvements to military family Search and Rescue and Medical project to Department of Vet- housing units. Evacuation missions in adverse erans Affairs. Sec. 2104. Authorization of appropriations, weather conditions. Sec. 1066. Transfer of historic DF–9E Pan- Army. Sec. 2105. Modification of authority to carry Subtitle B—Naval Vessels and Shipyards ther aircraft to Women Airforce out certain fiscal year 2002 Sec. 1021. Number of Navy surface combat- Service Pilots Museum. projects. ants in active and reserve serv- Sec. 1067. Rewards for assistance in com- Sec. 2106. Modification of authority to carry ice. bating terrorism. out certain fiscal year 2000 Sec. 1022. Plan for fielding the 155-milli- Sec. 1068. Provision of space and services to project. meter gun on a surface combat- military welfare societies. Sec. 2107. Modification of authority to carry ant. Sec. 1069. Commendation of military chap- out certain fiscal year 1999 Sec. 1023. Report on initiatives to increase lains. project. operational days of Navy ships. Sec. 1070. Grant of Federal charter to Ko- Sec. 2108. Modification of authority to carry Sec. 1024. Annual long-range plan for the rean War Veterans Association, out certain fiscal year 1997 construction of ships for the Incorporated. project. Navy. TITLE XI—DEPARTMENT OF DEFENSE Sec. 2109. Modification of authority to carry Subtitle C—Reporting Requirements CIVILIAN PERSONNEL POLICY out certain fiscal year 2001 Sec. 1031. Repeal and modification of var- Sec. 1101. Extension of authority to pay sev- project. ious reporting requirements ap- erance pay in a lump sum. Sec. 2110. Planning and design for anechoic plicable with respect to the De- Sec. 1102. Extension of voluntary separation chamber at White Sands Missile partment of Defense. incentive pay authority. Range, New Mexico.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0655 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6367 TITLE XXII—NAVY Sec. 2812. Conveyance of surplus real prop- Sec. 3133. Database to track notification and Sec. 2201. Authorized Navy construction and erty for natural resource con- resolution phases of Significant land acquisition projects. servation. Finding Investigations. Sec. 2202. Family housing. Sec. 2813. Modification of demonstration Sec. 3134. Requirements for specific request Sec. 2203. Improvements to military family program on reduction in long- for new or modified nuclear housing units. term facility maintenance weapons. Sec. 2204. Authorization of appropriations, costs. Sec. 3135. Requirement for authorization by Navy. Subtitle C—Land Conveyances law for funds obligated or ex- Sec. 2205. Modification to carry out certain Sec. 2821. Conveyance of certain lands in pended for Department of En- fiscal year 2002 projects. Alaska no longer required for ergy national security activi- TITLE XXIII—AIR FORCE National Guard purposes. ties. Sec. 2301. Authorized Air Force construction Sec. 2822. Land conveyance, Fort Campbell, Sec. 3136. Limitation on availability of and land acquisition projects. Kentucky. funds for program to eliminate Sec. 2302. Family housing. Sec. 2823. Modification of authority for land weapons grade plutonium pro- Sec. 2303. Improvements to military family transfer and conveyance, Naval duction in Russia. housing units. Security Group Activity, Win- Subtitle D—Proliferation Matters Sec. 2304. Authorization of appropriations, ter Harbor, Maine. Sec. 3151. Administration of program to Air Force. Sec. 2824. Land conveyance, Westover Air eliminate weapons grade pluto- Sec. 2305. Authority for use of military con- Reserve Base, Massachusetts. nium production in Russia. struction funds for construction Sec. 2825. Land conveyance, Naval Station Sec. 3152. Repeal of requirement for reports of public road near Aviano Air Newport, Rhode Island. on obligation of funds for pro- Base, Italy, closed for force pro- Sec. 2826. Land exchange, Buckley Air Force grams on fissile materials in tection purposes. Base, Colorado. Russia. Sec. 2306. Additional project authorization Sec. 2827. Land acquisition, Boundary Chan- Sec. 3153. Expansion of annual reports on for air traffic control facility at nel Drive Site, Arlington, Vir- status of nuclear materials pro- Dover Air Force Base, Dela- ginia. tection, control, and account- ware. Sec. 2828. Land conveyances, Wendover Air ing programs. Sec. 2307. Availability of funds for consoli- Force Base Auxiliary Field, Ne- Sec. 3154. Testing of preparedness for emer- dation of materials computa- vada. gencies involving nuclear, radi- tional research facility at Sec. 2829. Land conveyance, Fort Hood, ological, chemical, or biological Wright-Patterson Air Force Texas. weapons. Base, Ohio. Sec. 2830. Land conveyances, Engineer Prov- Sec. 3155. Program on research and tech- TITLE XXIV—DEFENSE AGENCIES ing Ground, Fort Belvoir, Vir- nology for protection from nu- Sec. 2401. Authorized Defense Agencies con- ginia. clear or radiological terrorism. Sec. 2831. Master plan for use of Navy struction and land acquisition Sec. 3156. Expansion of international mate- Annex, Arlington, Virginia. projects. rials protection, control, and Sec. 2832. Land conveyance, Sunflower Army Sec. 2402. Improvements to military family accounting program. Ammunition Plant, Kansas. housing units. Sec. 3157. Accelerated disposition of highly Sec. 2833. Land conveyance, Bluegrass Army Sec. 2403. Energy conservation projects. enriched uranium and pluto- Depot, Richmond, Kentucky. Sec. 2404. Authorization of appropriations, nium. Defense Agencies. Subtitle D—Other Matters Sec. 3158. Disposition of plutonium in Rus- TITLE XXV—NORTH ATLANTIC TREATY Sec. 2841. Transfer of funds for acquisition of sia. ORGANIZATION SECURITY INVESTMENT replacement property for Na- Sec. 3159. Strengthened international secu- PROGRAM tional Wildlife Refuge system rity for nuclear materials and Sec. 2501. Authorized NATO construction lands in Nevada. safety and security of nuclear and land acquisition projects. DIVISION C—DEPARTMENT OF ENERGY operations. Sec. 2502. Authorization of appropriations, NATIONAL SECURITY AUTHORIZATIONS Sec. 3160. Export control programs. NATO. AND OTHER AUTHORIZATIONS Sec. 3161. Improvements to nuclear mate- TITLE XXVI—GUARD AND RESERVE TITLE XXXI—DEPARTMENT OF ENERGY rials protection, control, and FORCES FACILITIES NATIONAL SECURITY PROGRAMS accounting program of the Rus- sian Federation. Sec. 2601. Authorized guard and reserve con- Subtitle A—National Security Programs struction and land acquisition Sec. 3162. Comprehensive annual report to Authorizations Congress on coordination and projects. Sec. 3101. National Nuclear Security Admin- Sec. 2602. Army National Guard Reserve integration of all United States istration. nonproliferation activities. Center, Lane County, Oregon. Sec. 3102. Defense environmental manage- Sec. 2603. Additional project authorization Sec. 3163. Utilization of Department of En- ment. for Composite Support Facility ergy national laboratories and Sec. 3103. Other defense activities. for Illinois Air National Guard. sites in support of Sec. 3104. Defense environmental manage- counterterrorism and homeland TITLE XXVII—EXPIRATION AND ment privatization. security activities. EXTENSION OF AUTHORIZATIONS Sec. 3105. Defense nuclear waste disposal. Subtitle E—Other Matters Sec. 2701. Expiration of authorizations and Subtitle B—Recurring General Provisions amounts required to be speci- Sec. 3171. Indemnification of Department of Sec. 3121. Reprogramming. fied by law. Energy contractors. Sec. 3122. Limits on minor construction Sec. 2702. Extension of authorizations of cer- Sec. 3172. Worker health and safety rules for projects. tain fiscal year 2000 projects. Department of Energy facili- Sec. 2703. Extension of authorizations of cer- Sec. 3123. Limits on construction projects. ties. tain fiscal year 1999 projects. Sec. 3124. Fund transfer authority. Sec. 3173. One-year extension of authority of Sec. 2704. Effective date. Sec. 3125. Authority for conceptual and con- Department of Energy to pay struction design. TITLE XXVIII—GENERAL PROVISIONS voluntary separation incentive Sec. 3126. Authority for emergency plan- payments. Subtitle A—Military Construction Program ning, design, and construction Sec. 3174. Support for public education in and Military Family Housing Changes activities. the vicinity of Los Alamos Na- Sec. 2801. Lease of military family housing Sec. 3127. Funds available for all national tional Laboratory, New Mexico. in Korea. security programs of the De- Sec. 2802. Repeal of source requirements for partment of Energy. Subtitle F—Disposition of Weapons-Usable family housing construction Sec. 3128. Availability of funds. Plutonium at Savannah River, South Caro- overseas. Sec. 3129. Transfer of defense environmental lina Sec. 2803. Modification of lease authorities management funds. Sec. 3181. Findings. under alternative authority for Sec. 3130. Transfer of weapons activities Sec. 3182. Disposition of weapons-usable plu- acquisition and improvement of funds. tonium at Savannah River Site. military housing. Subtitle C—Program Authorizations, Sec. 3183. Study of facilities for storage of Subtitle B—Real Property and Facilities Restrictions, and Limitations plutonium and plutonium materials at Savannah River Site. Administration Sec. 3131. Availability of funds for environ- Sec. 2811. Agreements with private entities mental management cleanup TITLE XXXII—DEFENSE NUCLEAR to enhance military training, reform. FACILITIES SAFETY BOARD testing, and operations. Sec. 3132. Robust Nuclear Earth Penetrator. Sec. 3201. Authorization.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0655 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 S6368 CONGRESSIONAL RECORD — SENATE July 8, 2002 Sec. 3202. Authorization of appropriations Subtitle B—Army Programs SEC. 124. MARINE CORPS LIVE FIRE RANGE IM- PROVEMENTS. for the formerly used sites re- SEC. 111. PILOT PROGRAM ON SALES OF MANU- (a) INCREASE IN AUTHORIZATION OF APPRO- medial action program of the FACTURED ARTICLES AND SERVICES Corps of Engineers. OF CERTAIN ARMY INDUSTRIAL FA- PRIATIONS.—The amount authorized to be appropriated by section 102(b) for procurement SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES CILITIES WITHOUT REGARD TO DEFINED. AVAILABILITY FROM DOMESTIC for the Marine Corps is hereby increased by SOURCES. $1,900,000, with the amount of the increase to For purposes of this Act, the term ‘‘con- be allocated to Training Devices. gressional defense committees’’ means— (a) EXTENSION OF PROGRAM.—Subsection (a) of section 141 of the National Defense Au- (b) AVAILABILITY.—(1) Of the amount au- (1) the Committee on Armed Services and thorized to be appropriated by section 102(b) the Committee on Appropriations of the Sen- thorization Act for Fiscal Year 1998 (Public Law 105–85; 10 U.S.C. 4543 note) is amended for procurement for the Marine Corps, as in- ate; and creased by subsection (a), $1,900,000 shall be (2) the Committee on Armed Services and by striking ‘‘through 2002’’ in the first sentence and inserting ‘‘through 2004’’. available as follows: the Committee on Appropriations of the (A) For upgrading live fire range target (b) USE OF OVERHEAD FUNDS MADE SURPLUS House of Representatives. movers. BY SALES.—Such section is further DIVISION A—DEPARTMENT OF DEFENSE amended— (B) To bring live fire range radio controls AUTHORIZATIONS (1) by redesignating subsection (c) as sub- into compliance with Federal Communica- TITLE I—PROCUREMENT section (d); and tions Commission narrow band require- (2) by inserting after subsection (b) the fol- ments. Subtitle A—Authorization of Appropriations (2) Amounts available under paragraph (1) lowing new subsection (c): SEC. 101. ARMY. for the purposes set forth in that paragraph ‘‘(c) For each Army industrial facility par- Funds are hereby authorized to be appro- are in addition to any other amounts avail- ticipating in the pilot program that sells priated for fiscal year 2003 for procurement able in this Act for such purposes. manufactured articles and services in a total for the Army as follows: (c) OFFSETTING REDUCTION.—The amount amount in excess of $20,000,000 in any fiscal (1) For aircraft, $2,144,386,000. authorized to be appropriated by section year, the amount equal to one-half of one (2) For missiles, $1,653,150,000. 103(1) for the C–17 interim contractor support percent of such total amount shall be trans- (3) For weapons and tracked combat vehi- is reduced by $1,900,000. ferred from the sums in the Army Working cles, $2,242,882,000. Subtitle D—Air Force Programs Capital Fund for unutilized plant capacity to (4) For ammunition, $1,205,499,000. appropriations available for the following SEC. 131. C–130J AIRCRAFT PROGRAM. (5) For other procurement, $5,513,679,000. (a) MULTIYEAR PROCUREMENT AUTHORITY.— fiscal year for the demilitarization of con- Beginning with the fiscal year 2003 program SEC. 102. NAVY AND MARINE CORPS. ventional ammunition by the Army.’’. year, the Secretary of the Air Force may, in (a) NAVY.—Funds are hereby authorized to (c) UPDATE OF INSPECTOR GENERAL’S RE- accordance with section 2306b of title 10, be appropriated for fiscal year 2003 for pro- VIEW.—The Inspector General of the Depart- curement for the Navy as follows: United States Code, enter into a multiyear ment of Defense shall review the experience contract for the procurement of C–130J air- (1) For aircraft, $9,037,209,000. under the pilot program carried out under (2) For weapons, including missiles and craft and variants of the C–130J aircraft, subsection 141 of Public Law 105–85 and, not ject to subsection (b), and except that, not- torpedoes, $2,505,820,000. later than July 1, 2003, submit to Congress a (3) For shipbuilding and conversion, withstanding subsection (k) of such section, report on the results of the review. The re- such a contract may be for a period of six $8,624,160,000. port shall contain the views, information, (4) For other procurement, $4,515,500,000. program years. and recommendations called for under sub- (b) LIMITATION.—The Secretary of the Air (b) MARINE CORPS.—Funds are hereby au- section (d) of such section (as redesignated Force may not enter into a multiyear con- thorized to be appropriated for fiscal year by subsection (b)(1)). In carrying out the re- tract authorized by subsection (a) until the 2003 for procurement for the Marine Corps in view and preparing the report, the Inspector C–130J aircraft has been cleared for world- the amount of $1,341,219,000. General shall take into consideration the re- wide over-water capability. (c) NAVY AND MARINE CORPS AMMUNITION.— port submitted to Congress under such sub- SEC. 132. PATHFINDER PROGRAMS. Funds are hereby authorized to be appro- section (as so redesignated). priated for fiscal year 2003 for procurement (a) SPIRAL DEVELOPMENT PLAN FOR SE- of ammunition for the Navy and the Marine Subtitle C—Navy Programs LECTED PATHFINDER PROGRAMS.—Not later Corps in the amount of $1,173,157,000. SEC. 121. INTEGRATED BRIDGE SYSTEM. than February 1, 2003, the Secretary of the Air Force shall— (a) AMOUNT FOR PROGRAM.—Of the amount SEC. 103. AIR FORCE. (1) identify among the pathfinder programs authorized to be appropriated by section Funds are hereby authorized to be appro- listed in subsection (e) each pathfinder pro- 102(a)(4), $5,000,000 shall be available for the priated for fiscal year 2003 for procurement gram that the Secretary shall conduct as a procurement of the integrated bridge system for the Air Force as follows: spiral development program; and in items less than $5,000,000. (1) For aircraft, $12,613,605,000. (2) submit to the Secretary of Defense for (b) OFFSETTING REDUCTION.—Of the total (2) For ammunition, $1,275,864,000. each pathfinder program identified under amount authorized to be appropriated by (3) For missiles, $3,258,162,000. paragraph (1) a spiral development plan that section 102(a)(4), the amount available for (4) For other procurement, $10,477,840,000. meets the requirements of section 803(c). SEC. 104. DEFENSE-WIDE ACTIVITIES. the integrated bridge system in Aegis sup- (b) APPROVAL OR DISAPPROVAL OF SPIRAL port equipment is hereby reduced by Funds are hereby authorized to be appro- DEVELOPMENT PLANS.—Not later than March $5,000,000. priated for fiscal year 2003 for Defense-wide 15, 2003, the Secretary of Defense shall— procurement in the amount of $3,054,943,000. SEC. 122. EXTENSION OF MULTIYEAR PROCURE- (1) review each spiral development plan MENT AUTHORITY FOR DDG–51 SEC. 105. DEFENSE INSPECTOR GENERAL. submitted under subsection (a)(2); CLASS DESTROYERS. (2) approve or disapprove the conduct as a Funds are hereby authorized to be appro- Section 122(b) of the National Defense Au- priated for fiscal year 2003 for procurement spiral development plan of the pathfinder thorization Act for Fiscal Year 1997 (Public program covered by each such spiral develop- for the Inspector General of the Department Law 104–201; 110 Stat. 2446), as amended by of Defense in the amount of $2,000,000. ment plan; and section 122 of Public Law 106–65 (113 Stat. (3) submit to the congressional defense SEC. 106. CHEMICAL AGENTS AND MUNITIONS 534) and section 122(a) of the Floyd D. Spence committees a copy of each spiral develop- DESTRUCTION, DEFENSE. National Defense Authorization Act for Fis- ment plan approved under paragraph (2). There is hereby authorized to be appro- cal Year 2001 (as enacted into law by Public (c) ASSESSMENT OF PATHFINDER PROGRAMS priated for the Office of the Secretary of De- Law 106–398; 114 Stat. 1654A–24), is further NOT SELECTED OR APPROVED FOR SPIRAL DE- fense for fiscal year 2003 the amount of amended by striking ‘‘October 1, 2005’’ in the VELOPMENT.—Not later than March 15, 2003, $1,490,199,000 for— first sentence and inserting ‘‘October 1, each official of the Department of Defense (1) the destruction of lethal chemical 2007’’. specified in subsection (d) shall submit to agents and munitions in accordance with SEC. 123. MAINTENANCE OF SCOPE OF CRUISER the congressional defense committees the as- section 1412 of the Department of Defense CONVERSION OF TICONDEROGA sessment required of such official under that Authorization Act, 1986 (50 U.S.C. 1521); and CLASS AEGIS CRUISERS. subsection for the acquisition plan for each (2) the destruction of chemical warfare ma- The Secretary of the Navy should maintain pathfinder program as follows: teriel of the United States that is not cov- the scope of the cruiser conversion program (1) Each pathfinder program that is not ered by section 1412 of such Act. for the Ticonderoga class of AEGIS cruisers identified by the Secretary of the Air Force SEC. 107. DEFENSE HEALTH PROGRAMS. such that the program— under subsection (a)(1) as a program that the Funds are hereby authorized to be appro- (1) covers all 27 Ticonderoga class AEGIS Secretary shall conduct as a spiral develop- priated for fiscal year 2003 for the Depart- cruisers; and ment program. ment of Defense for procurement for car- (2) modernizes the class of cruisers to in- (2) Each pathfinder program that is dis- rying out health care programs, projects, clude an appropriate mix of upgrades to approved by the Secretary of Defense for and activities of the Department of Defense ships’ capabilities for theater missile de- conduct as a spiral development program in the total amount of $278,742,000. fense, naval fire support, and air dominance. under subsection (b)(2).

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6369

(d) OFFICIALS AND REQUIRED ASSESSMENTS (1) space-based assets, space launch assets, (4) For Defense-wide activities, FOR PROGRAMS OUTSIDE SPIRAL DEVELOP- or user equipment for such assets; or $17,543,927,000, of which $361,554,000 is author- MENT.—The officials specified in this sub- (2) earth-based or spaced-based assets dedi- ized for the Director of Operational Test and section, and the assessment required of such cated primarily to space surveillance or Evaluation. officials, are as follows: space control. SEC. 202. AMOUNT FOR SCIENCE AND TECH- (1) The Director of Operational Test and SEC. 134. LEASING OF TANKER AIRCRAFT. NOLOGY. Evaluation, who shall assess the test con- The Secretary of the Air Force shall not (a) AMOUNT FOR PROJECTS.—Of the total tents of the acquisition plan for each path- enter into any lease for tanker aircraft until amount authorized to be appropriated by finder program covered by subsection (c). the Secretary submits the report required by section 201, $10,164,358,000 shall be available (2) The Chairman of the Joint Require- section 8159(c)(6) of the Department of De- for science and technology projects. ments Oversight Council, who shall assess fense Appropriations Act, 2002 (division A of (b) SCIENCE AND TECHNOLOGY DEFINED.—In the extent to which the acquisition plan for Public Law 107–117; 115 Stat. 2284) and ob- this section, the term ‘‘science and tech- each such pathfinder program addresses vali- tains authorization and appropriation of nology project’’ means work funded in pro- dated military requirements. funds necessary to enter into a lease for such gram elements for defense research, develop- (3) The Under Secretary of Defense (Comp- aircraft consistent with his publicly stated ment, test, and evaluation under Depart- troller), in coordination with the Under Sec- commitments to the Congress to do so. ment of Defense budget activities 1, 2, or 3. retary of Defense for Acquisition, Tech- SEC. 135. COMPASS CALL PROGRAM. SEC. 203. DEFENSE HEALTH PROGRAMS. nology, and Logistics, who shall conduct an Of the amount authorized to be appro- Funds are hereby authorized to be appro- independent programmatic evaluation of the priated by section 103(1), $12,700,000 shall be priated for fiscal year 2003 for the Depart- acquisition plan for each such pathfinder available for the Compass Call program ment of Defense for research, development, program, including an analysis of the total within classified projects and not within the test, and evaluation for carrying out health cost, schedule, and technical risk associated Defense Airborne Reconnaissance Program. care programs, projects, and activities of the with development of such program. SEC. 136. SENSE OF CONGRESS REGARDING AS- Department of Defense in the total amount (e) PATHFINDER PROGRAMS.—The path- SURED ACCESS TO SPACE. of $67,214,000. finder programs listed in this subsection are (a) FINDINGS.—Congress makes the fol- Subtitle B—Program Requirements, the program as follows: lowing findings: Restrictions, and Limitations (1) Space Based Radar. (1) Assured access to space is a vital na- (2) Global Positioning System. SEC. 211. BASIC SEISMIC RESEARCH PROGRAM tional security interest of the United States. FOR SUPPORT OF NATIONAL RE- (3) Global Hawk. (2) The Evolved Expendable Launch Vehi- QUIREMENTS FOR MONITORING NU- (4) Combat Search and Rescue. cle program of the Department of Defense is CLEAR EXPLOSIONS. (5) B–2 Radar. a critical element of the Department’s plans (a) MANAGEMENT OF PROGRAM.—(1) The (6) Predator B. for assuring United States access to space. Secretary of the Air Force shall manage the (7) B–1 Defensive System Upgrade. (3) Significant contractions in the com- Department of Defense program of basic seis- (8) Multi Mission Command and Control mercial space launch marketplace have erod- mic research in support of national require- Constellation. ed the overall viability of the United States ments for monitoring nuclear explosions. (9) Unmanned Combat Air Vehicle. space launch industrial base and could ham- The Secretary shall manage the program in (10) Global Transportation Network. per the ability of the Department of Defense the manner necessary to support Air Force (11) C–5 Avionics Modernization Program. to provide assured access to space in the fu- mission requirements relating to the na- (12) Hunter/Killer. ture. tional requirements. (13) Tanker/Lease. (4) The continuing viability of the United (2) The Secretary shall act through the Di- (14) Small Diameter Bomb. States space launch industrial base is a crit- rector of the Air Force Research Laboratory (15) KC–767. ical element of any strategy to ensure the in carrying out paragraph (1). (16) AC–130 Gunship. long-term ability of the United States to as- (c) AMOUNT FOR PROGRAM.—Of the amount SEC. 133. OVERSIGHT OF ACQUISITION FOR DE- sure access to space. authorized to be appropriated by section FENSE SPACE PROGRAMS. (5) The Under Secretary of the Air Force, 201(4), $20,000,000 shall be available for the (a) IN GENERAL.—The Office of the Sec- as acquisition executive for space programs program referred to in subsection (a). retary of Defense shall maintain oversight of in the Department of Defense, has been au- SEC. 212. ADVANCED SEAL DELIVERY SYSTEM. acquisition for defense space programs. thorized to develop a strategy to address To the extent provided in appropriations (b) REPORT ON OVERSIGHT.—(1) Not later United States space launch and assured ac- Acts, the Secretary of Defense may use for than March 15, 2003, the Secretary of Defense cess to space requirements. research, development, test, and evaluation shall submit to the congressional defense (b) SENSE OF CONGRESS.—It is the sense of for the Advanced SEAL Delivery System any committees a detailed plan on how the Office Congress that the Under Secretary of the Air funds that were authorized to be appro- of the Secretary of Defense shall provide Force should— priated to the Department of Defense for fis- oversight of acquisition for defense space (1) evaluate all options for sustaining the cal year 2002 for the procurement of that sys- programs. United States space launch industrial base; tem, were appropriated pursuant to such au- (2) The plan shall set forth the following: (2) develop an integrated, long-range, and thorization of appropriations, and are no (A) The organizations in the Office of the adequately funded plan for assuring United longer needed for that purpose. Secretary of Defense, and the Joint Staff or- States access to space; and SEC. 213. ARMY EXPERIMENTATION PROGRAM ganizations, to be involved in oversight of (3) submit to Congress a report on the plan REGARDING DESIGN OF THE OBJEC- acquisition for defense space programs. at the earliest opportunity practicable. TIVE FORCE. (B) The process for the review of defense SEC. 137. MOBILE EMERGENCY BROADBAND SYS- (a) REQUIREMENT FOR REPORT.—Not later space programs by the organizations speci- TEM. than March 30, 2003, the Secretary of the fied under subparagraph (A). (a) AMOUNT FOR PROGRAM.—Of the total Army shall submit to Congress a report on (C) The process for the provision by such amount authorized to be appropriated by the experimentation program regarding de- organizations of technical, programmatic, section 103(4), $1,000,000 may be available for sign of the objective force that is required by scheduling, and budgetary advice on defense the procurement of technical communica- subsection (g) of section 113 of the Floyd D. space programs to the Deputy Secretary of tions-electronics equipment for the Mobile Spence National Defense Authorization Act Defense and the Under Secretary of the Air Emergency Broadband System. for Fiscal Year 2001, as added by section 113 Force. (b) OFFSETTING REDUCTION.—Of the total of the National Defense Authorization Act (D) The process for the development of amount authorized to be appropriated by for Fiscal Year 2002 (Public Law 107–107; 115 independent cost estimates for defense space section 103(4), the amount available under Stat. 1029). programs, including the organization respon- such section for the Navy for other procure- (b) BUDGET DISPLAY.—Amounts provided sible for developing such cost estimates and ment for gun fire control equipment, SPQ–9B for the experimentation program in the when such cost estimates shall be required. solid state transmitter, is hereby reduced by budget for fiscal year 2004 that is submitted (E) The process for the development of the $1,000,000. to Congress under section 1105(a) of title 31, budget for acquisition for defense space pro- TITLE II—RESEARCH, DEVELOPMENT, United States Code, shall be displayed as a grams. TEST, AND EVALUATION distinct program element in that budget and (F) The process for the resolution of issues in the supporting documentation submitted regarding acquisition for defense space pro- Subtitle A—Authorization of Appropriations to Congress by the Secretary of Defense. grams that are raised by the organizations SEC. 201. AUTHORIZATION OF APPROPRIATIONS. SEC. 214. REALLOCATION OF AMOUNT AVAIL- specified under subparagraph (A). Funds are hereby authorized to be appro- ABLE FOR INDIRECT FIRE PRO- (c) DEFENSE SPACE PROGRAM DEFINED.—In priated for fiscal year 2003 for the use of the GRAMS. this section, the term ‘‘defense space pro- Department of Defense for research, develop- (a) REDUCTION OF AMOUNT FOR CRUSADER.— gram’’ means any major defense acquisition ment, test, and evaluation as follows: Of the amount authorized to be appropriated program (as that term is defined in section (1) For the Army, $7,297,033,000. by section 201(1) for the Army for research, 2430 of title 10, United States Code) for the (2) For the Navy, $12,927,135,000. development, test, and evaluation, the acquisition of— (3) For the Air Force, $18,608,684,000. amount available for continued research and

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 S6370 CONGRESSIONAL RECORD — SENATE July 8, 2002 development of the Crusader artillery sys- (i) the manner in which the amount pro- the increase to be allocated to Army missile tem is hereby reduced by $475,600,000. vided in that budget would be expended for defense systems integration (DEM/VAL) (PE (b) INCREASE OF AMOUNT FOR FUTURE COM- improved indirect fire capabilities for the 0603308A). BAT SYSTEMS.—Of the amount authorized to Army; and (b) AVAILABILITY FOR RADAR POWER TECH- be appropriated by section 201(1) for the (ii) the extent to which the expenditures in NOLOGY.—(1) Of the amount authorized to be Army for research, development, test, and that manner would improve indirect fire ca- appropriated by section 201(1) for the Depart- evaluation, the amount available for re- pabilities for the Army. ment of Defense for research, development, search and development for the Objective (3) The requirement to submit an annual test, and evaluation for the Army, as in- Force indirect fire systems is hereby in- report under paragraph (1) shall apply with creased by subsection (a), $4,500,000 shall be creased by $475,600,000. The amount of the in- respect to budgets for fiscal years 2004, 2005, available for radar power technology. crease shall be available only for meeting 2006, 2007, and 2008. (2) The amount available under paragraph the needs of the Army for indirect fire capa- SEC. 215. LASER WELDING AND CUTTING DEM- (1) for radar power technology is in addition bilities, and may not be used under the au- ONSTRATION. to any other amounts available under this thority of this section until 30 days after the (a) AMOUNT FOR PROGRAM.—Of the total Act for such technology. date on which the Secretary of Defense sub- amount authorized to be appropriated by (c) OFFSET.—The amount authorized to be mits to the congressional defense commit- section 201(2) for research, development, test, appropriated by section 201(2) for research, tees the report required by subsection (d), to- and evaluation for the Navy, $6,000,000 shall development, test, and evaluation for the gether with a notification of the Secretary’s be available for the laser welding and cutting Navy is hereby reduced by $4,500,000, with the plan to use such funds to meet the needs of demonstration in force protection applied re- amount of the reduction to be allocated to the Army for indirect fire capabilities. search (PE 0602123N). common picture advanced technology (PE (c) USE OF FUNDS.—Subject to subsection (b) OFFSETTING REDUCTION.—Of the total 0603235N). (b), the Secretary of Defense may use the amount authorized to be appropriated by SEC. 219B. CRITICAL INFRASTRUCTURE PROTEC- amount available under such subsection for section 201(2) for research, development, test, TION. any program for meeting the needs of the and evaluation for the Navy, the amount (a) AMOUNT FOR PROGRAM.—Of the amount Army for indirect fire capabilities. available for laser welding and cutting dem- authorized to be appropriated in section (d) REPORTING REQUIREMENT.—(1) Not later onstration in surface ship and submarine 201(4), $4,500,000 may be available for critical than 30 days after the date of the enactment HM&E advanced technology (PE 0603508N) is infrastructure protection (PE 35190D8Z). of this Act, the Chief of Staff of the Army hereby reduced by $6,000,000. (b) OFFSET.—Of the amount authorized to shall complete a review of the full range of be appropriated by section 201(2), the amount SEC. 216. ANALYSIS OF EMERGING THREATS. Army programs that could provide improved for power projection advanced technology (a) INCREASE IN AUTHORIZATION OF APPRO- indirect fire for the Army over the next 20 (PE 63114N) is hereby reduced by $4,500,000. years and shall submit to the Secretary of PRIATIONS.—The amount authorized to be appropriated by section 201(2) for research, de- SEC. 219C. THEATER AEROSPACE COMMAND AND Defense a report containing the rec- CONTROL SIMULATION FACILITY UP- ommendation of the Chief of Staff on which velopment, test, and evaluation for the Navy GRADES. alternative for improving indirect fire for is hereby increased by $2,000,000 with the (a) AVAILABILITY OF FUNDS.—(1) The the Army is the best alternative for that amount of the increase to be allocated to amount authorized to be appropriated by purpose. The report shall also include infor- Marine Corps Advanced Technology Dem- section 201(3) for the Air Force for mation on each of the following funding mat- onstration (ATD) (PE 0603640M). wargaming and simulation centers (PE ters: (b) AVAILABILITY.—(1) Of the amount au- 0207605F) is increased by $2,500,000. The total (A) The manner in which the amount avail- thorized to be appropriated by section 201(2) amount of the increase may be available for able under subsection (b) should be best infor research, development, test, and evalua- Theater Aerospace Command and Control vested to support the improvement of indi- tion for the Navy, as increased by subsection Simulation Facility (TACCSF) upgrades. rect fire capabilities for the Army. (a), $2,000,000 may be available for analysis of (2) The amount available under paragraph (B) The manner in which the amount pro- emerging threats. (1) for Theater Aerospace Command and Con- vided for indirect fire programs of the Army (2) The amount available under paragraph trol Simulation Facility upgrades is in addi- in the future-years defense program sub- (1) for analysis of emerging threats is in ad- tion to any other amounts available under mitted to Congress with respect to the budg- dition to any other amounts available under this Act for such upgrades. et for fiscal year 2003 under section 221 of this Act for analysis of emerging threats. (b) OFFSET.—The amount authorized to be title 10, United States Code, should be best (c) OFFSET.—The amount authorized to be appropriated by section 201(2) for the Navy invested to support improved indirect fire appropriated by section 201(1) for research, for Mine and Expeditionary Warfare Applied for the Army. development, test, and evaluation for the Research (PE 0602782N) is reduced by (C) The manner in which the amounts de- Army is hereby reduced by $2,000,000, with $2,500,000. scribed in subparagraphs (A) and (B) should the amount of the reduction allocated as fol- SEC. 219D. DDG OPTIMIZED MANNING INITIA- be best invested to support the improvement lows: TIVE. of indirect fire capabilities for the Army in (1) $1,000,000 may be allocated to Weapons (a) INCREASE IN AUTHORIZATION OF APPRO- the event of a termination of the Crusader and Munitions Technology (PE 0602624A) and PRIATIONS.—The amount authorized to be ap- artillery system program. available for countermobility systems. propriated by section 201(2) for research, de- (D) The portion of the amount available (2) $1,000,000 may be allocated to velopment, test, and evaluation for the Navy under subsection (b) that should be reserved Warfighter Advanced Technology (PE is hereby increased by $2,500,000, with the for paying costs associated with a termi- 0603001A) and available for Objective Force amount of the increase to be allocated to nation of the Crusader artillery system pro- Warrior technologies. surface combatant combat system engineer- gram in the event of such a termination. SEC. 217. PROHIBITION ON TRANSFER OF MED- ing (PE 0604307N). (2) The Secretary of Defense shall submit ICAL FREE ELECTRON LASER PRO- (b) AVAILABILITY.—(1) Of the amount au- the report, together with any comments and GRAM. thorized to be appropriated by section 201(2) recommendations that the Secretary con- Notwithstanding any other provision of for research, development, test, and evalua- siders appropriate, to the congressional de- law, the Medical Free Electron Laser Pro- tion for the Navy, as increased by subsection fense committees. gram (PE 0602227D8Z) may not be transferred (a), $2,500,000 may be available for the DDG (e) ANNUAL UPDATES.—(1) The Secretary from the Department of Defense to the Na- optimized manning initiative. shall submit to the congressional defense tional Institutes of Health, or to any other (2) The amount available under paragraph committees, at the same time that the Presi- department or agency of the Federal Govern- (1) for the initiative referred to in that para- dent submits the budget for a fiscal year re- ment. graph is in addition to any other amounts ferred to in paragraph (4) to Congress under SEC. 218. DEMONSTRATION OF RENEWABLE EN- available under this Act for that initiative. section 1105(a) of title 31, United States ERGY USE. (c) OFFSET.—The amount authorized to be Code, a report on the investments proposed Of the amount authorized to be appro- appropriated by section 201(1) for research, to be made in indirect fire programs for the priated by section 201(2), $2,500,000 shall be development, test, and evaluation for artil- Army. available for the demonstration of renewable lery systems DEM/VAL (PE 0603854A), by (2) If the Crusader artillery system pro- energy use program within the program ele- $2,500,000. gram has been terminated by the time the ment for the Navy energy program and not SEC. 219E. AGROTERRORIST ATTACKS. annual report is submitted in conjunction within the program element for facilities im- (a) AVAILABILITY.—(1) Of the amount au- with the budget for a fiscal year, the report provement. thorized to be appropriated by section 201(4) shall— SEC. 219A. RADAR POWER TECHNOLOGY FOR THE for research, development, test, and evalua- (A) identify the amount proposed for ex- ARMY. tion, defense-wide, the amount available for penditure for the Crusader artillery system (a) INCREASE IN AUTHORIZATION OF APPRO- basic research for the Chemical and Biologi- program for that fiscal year in the future- PRIATIONS.—The amount authorized to be ap- cal Defense Program (PE 0601384BP) is here- years defense program that was submitted to propriated by section 201(1) for the Depart- by increased by $1,000,000, with the amount Congress in 2002 under section 221 of title 10, ment of Defense for research, development, of such increase to be available for research, United States Code; and test, and evaluation for the Army is hereby analysis, and assessment of efforts to (B) specify— increased by $4,500,000, with the amount of counter potential agroterrorist attacks.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6371 (2) The amount available under paragraph and evaluation for the Air Force, $6,000,000 SEC. 222. REPORT ON MIDCOURSE DEFENSE PRO- (1) for research, analysis, and assessment de- may be available for the Aerospace Relay GRAM. scribed in that paragraph is in addition to Mirror System (ARMS) Demonstration. (a) REQUIREMENT FOR REPORT.—Not later any other amounts available in this Act for SEC. 219J. LITTORAL SHIP PROGRAM. than January 15, 2003, the Secretary of De- such research, analysis, and assessment. (a) AMOUNT FOR PROGRAM.—Of the amount fense shall submit to the congressional de- (b) OFFSET.—Of the amount authorized to authorized to be appropriated by section fense committees a report on the Midcourse be appropriated by section 201(4) for re- 201(2) for research and development, test and Defense program of the United States Missile search, development, test, and evaluation, evaluation, Navy, $4,000,000 may be available Defense Agency. The report shall include the Defense-wide, the amount available for bio- for requirements development of a littoral following information: logical terrorism and agroterrorism risk as- ship in Ship Concept Advanced Design (PE (1) The development schedule, together sessment and prediction in the program ele- 0603563N). with an estimate of the annual costs through ment relating to the Chemical and Biologi- (b) OFFSETTING REDUCTION.—Of the total the completion of development. cal Defense Program (PE 0603384BP) is here- amount authorized to be appropriated by (2) The planned procurement schedule, to- by reduced by $1,000,000. section 201(2) for research and development, gether with the Secretary’s best estimates of SEC. 219F. VERY HIGH SPEED SUPPORT VESSEL test and evaluation, Navy, the amount avail- the annual costs of, and number of units to FOR THE ARMY. able for FORCENET in Tactical Command be procured under, the program through the (a) INCREASE IN AUTHORIZATION OF APPRO- System (PE 0604231N), is hereby reduced by completion of the procurement. PRIATIONS.—The amount authorized to be ap- an additional $4,000,000. (3) The current program acquisition unit propriated by section 201(1) for research, de- cost and the history of acquisition unit costs velopment, test, and evaluation for the Subtitle C—Missile Defense Programs from the date the program (including its an- Army is hereby increased by $5,500,000, with SEC. 221. ANNUAL OPERATIONAL ASSESSMENTS tecedent program) was first included in a Se- the amount of the increase to be allocated to AND REVIEWS OF BALLISTIC MIS- lected Acquisition Report under section 2432 logistics and engineering equipment–ad- SILE DEFENSE PROGRAM. of title 10, United States Code. vanced development (PE 0603804A). (a) ANNUAL OPERATIONAL ASSESSMENT.— (4) The current procurement unit cost, and (b) AVAILABILITY.—(1) Of the amount au- (1)(A) During the first quarter of each fiscal the history of procurement unit costs from thorized to be appropriated by section 201(1) year, the Director of Operational Test and the date the program (including any ante- for research, development, test, and evalua- Evaluation shall conduct an operational as- cedent program) was first included in a Se- tion for the Army, as increased by sub- sessment of the missile defense programs lected Acquisition Report under such section section (a), $5,500,000 may be available for de- listed in paragraph (3). 2432. velopment of a prototype composite hull de- (B) The annual assessment shall include— (5) The reasons for any changes in program sign to meet the theater support vessel re- (i) a detailed, quantitative evaluation of acquisition cost, program acquisition unit quirement. the potential operational effectiveness, reli- cost, procurement cost, or procurement unit (2) The amount available under paragraph ability, and suitability of the system or sys- cost, and the reasons for any changes in pro- (1) for development of the hull design re- tems under each program as the program ex- gram schedule. ferred to in that paragraph is in addition to ists during the fiscal year of the assessment; (6) The major contracts under the program any other amounts available under this Act (ii) an evaluation of the adequacy of test- and the reasons for any changes in cost or for development of that hull design. ing through the end of the previous fiscal schedule variances under the contracts. (c) OFFSET.—The amount authorized to be year to measure and predict the effective- (7) The Test and Evaluation Master Plan appropriated by section 201(2) for research, ness of the systems; and developed for the program in accordance development, test, and evaluation for the (iii) a determination of the threats, or type with the requirements and guidance of De- Navy is hereby decreased by $5,500,000, with of threats, against which the systems would partment of Defense regulation 5000.2–R. the amount of the decrease to be allocated to be expected to be effective and those against (b) SEGREGATION OF GROUND-BASED AND submarine tactical warfare system (PE which the systems would not be expected to SEA-BASED EFFORTS.—The report under sub- 0604562N) and amounts available under that be effective. section (a) shall separately display the program element for upgrades of combat (C) The first assessment under this para- schedules, cost estimates, cost histories, control software to commercial architecture. graph shall be conducted during fiscal year contracts, and test plans for— 2003. SEC. 219G. FULL-SCALE HIGH-SPEED PERMANENT (1) the National Missile Defense/Ground- MAGNET GENERATOR. (2) Not later than January 15 of each year, based Midcourse Defense program; and (a) INCREASE IN AUTHORIZATION OF APPRO- the Director of Operational Test and Evalua- (2) the Navy TheaterWide/Sea-based Mid- PRIATIONS.—The amount authorized to be ap- tion shall submit to the Secretary of Defense course Defense program. propriated by section 201(2) for research, de- and the congressional defense committees a velopment, test, and evaluation for the Navy report on the assessment conducted during SEC. 223. REPORT ON AIR-BASED BOOST PRO- is hereby increased by $1,000,000, with the the preceding quarter-year. The report shall GRAM. amount of the increase to be allocated to include the evaluation of the potential of the Not later than January 15, 2003, the Sec- Force Protection Advanced Technology (PE system or systems together with a discus- retary of Defense shall submit to the con- 0603123N). sion of the basis for the evaluation. gressional defense committees a report on (b) AVAILABILITY.—(1) Of the amount au- (3) The requirement for an annual oper- the Air-based Boost program (formerly thorized to be appropriated by section 201(2) ational assessment under paragraph (1) shall known as the Airborne Laser program). The for research, development, test, and evalua- apply to programs under the United States report shall contain the following information for the Navy, as increased by subsection Missile Defense Agency as follows: tion: (a), $1,000,000 may be available for develop- (A) The Ground-based Midcourse Defense (1) The development schedule together ment and demonstration of a full-scale high- program. with the estimated annual costs of the pro- speed permanent magnet generator. (B) The Sea-based Midcourse Defense program through the completion of develop- (2) The amount available under paragraph gram. ment. (1) for development and demonstration of the (C) The Theater High Altitude Area De- (2) The planned procurement schedule, to- generator described in that paragraph is in fense (THAAD) program. gether with the Secretary’s best estimates of addition to any other amounts available in (D) The Air-based Boost program (formerly the annual costs of, and number of units to this Act for development and demonstration known as the Airborne Laser Defense pro- be procured under, the program through the of that generator. gram). completion of the procurement. (c) OFFSET.—The amount authorized to be (b) ANNUAL REQUIREMENTS REVIEWS.—(1) (3) The current program acquisition unit appropriated by section 201(1) for research, During the first quarter of each fiscal year, cost, and the history of program acquisition development, test, and evaluation for the the Joint Requirements Oversight Council unit costs from the date the program (in- Army is hereby reduced by $1,000,000, with established under section 181 of title 10, cluding any antecedent program) was first the amount of the reduction to be allocated United States Code, shall review the cost, included in a Selected Acquisition Report to Artillery Systems–Dem/Val (PE 0603854A). schedule, and performance criteria for the under section 2432 of title 10, United States SEC. 219H. AVIATION-SHIPBOARD INFORMATION missile defense programs under the United Code. TECHNOLOGY INITIATIVE. States Missile Defense Agency and assess the (4) The current procurement unit cost, and Of the amount authorized to be appro- validity of the criteria in relation to mili- the history of procurement unit costs from priated by section 201(2) for shipboard avia- tary requirements. The first review shall be the date the program (including any ante- tion systems, up to $8,200,000 may be used for carried out in fiscal year 2003. cedent program) was first included in a Se- the aviation-shipboard information tech- (2) Not later than January 15 of each year, lected Acquisition Report under such section nology initiative. the Chairman of the Joint Requirements 2432. SEC. 219I. AEROSPACE RELAY MIRROR SYSTEM Oversight Council shall submit to the Sec- (5) The reasons for any changes in program (ARMS) DEMONSTRATION. retary of Defense and the congressional de- acquisition cost, program acquisition unit Of the amount authorized to be appro- fense committees a report on the results of cost, procurement cost, or procurement unit priated by section 201(3) for the Department the review carried out under paragraph (1) cost, and the reasons for any changes in proof Defense for research, development, test, during the preceding quarter-year. gram schedule.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 S6372 CONGRESSIONAL RECORD — SENATE July 8, 2002 (6) The major contracts under the program submit to the congressional defense commit- ation of such facilities and resources and the reasons for any changes in cost or tees a report on each flight test of the throughout the Department; and schedule variances under the contracts. Ground-based Midcourse national missile de- ‘‘(F) ensure that unnecessary costs of own- (7) The Test and Evaluation Master Plan fense system. The report shall be submitted ing and operating Department of Defense developed for the program in accordance not later than 120 days after the date of the test and evaluation resources are not in- with the requirements and guidance of De- test. curred. partment of Defense regulation 5000.2–R. (b) CONTENT.—A report on a flight test ‘‘(4) In this section, the term ‘Major Range SEC. 224. REPORT ON THEATER HIGH ALTITUDE under subsection (a) shall include the fol- and Test Facility Base’ means the test and AREA DEFENSE PROGRAM. lowing matters: evaluation facilities and resources that are (a) REQUIREMENT FOR REPORT.—Not later (1) A thorough discussion of the content designated by the Director of Operational than January 15, 2003, the Secretary of De- and objectives of the test. Test and Evaluation as facilities and re- fense shall submit to the congressional de- (2) For each test objective, a statement resources comprising the Major Range and fense committees a report on the Theater garding whether the objective was achieved. Test Facility Base.’’. High Altitude Area Defense program. The re- (3) For any test objective not achieved— (b) EFFECTIVE DATE AND TRANSITION RE- port shall contain the following information: (A) a thorough discussion describing the QUIREMENTS.—(1) The amendment made by (1) The development schedule together reasons for not achieving the objective; and paragraph (1) shall take effect one year after with the estimated annual costs of the pro- (B) a discussion of any plans for future the date of the enactment of this Act. (2)(A) The Secretary of Defense shall de- gram through the completion of develop- tests to achieve the objective. velop a transition plan to ensure that the ment. (c) FORMAT.—The reports required under head of the Test and Evaluation Resource (2) The planned procurement schedule, to- subsection (a) shall be submitted in classi- Enterprise is prepared to assume the respon- gether with the Secretary’s best estimates of fied and unclassified form. the annual costs of, and number of units to sibilities under subsection (k) of section 139 be procured under, the program through the Subtitle D—Improved Management of De- of title 10, United States Code (as added by completion of the procurement. partment of Defense Test and Evaluation subsection (a)), on the effective date pro- (3) The current program acquisition unit Facilities vided in paragraph (1). cost and the history of program acquisition SEC. 231. DEPARTMENT OF DEFENSE TEST AND (B) Until the Test and Evaluation Resource unit costs from the date the program (in- EVALUATION RESOURCE ENTER- Enterprise has been established, all invest- cluding any antecedent program) was first PRISE. ments of $500,000 or more in the Major Range included in a Selected Acquisition Report (a) ESTABLISHMENT.—Section 139 of title 10, and Test Facility Base of the Department of under section 2432 of title 10, United States United States Code, is amended by adding at Defense shall be subject to the approval of the Director of Operational Test and Evalua- Code. the end the following new subsection: tion. (4) The current procurement unit cost, and ‘‘(k)(1) There is a Test and Evaluation Re- (C) In this paragraph, the term ‘‘Major the history of procurement unit costs from source Enterprise within the Department of Defense. The head of the Test and Evalua- Range and Test Facility Base’’ has the the date the program (including any ante- meaning given that term in section 139(k)(4) cedent program) was first included in a Se- tion Resource Enterprise shall report to the Director of Operational Test and Evaluation. of title 10, United States Code, as added by lected Acquisition Report under such section subsection (a). 2432. ‘‘(2)(A) The head of the Test and Evalua- tion Resource Enterprise shall manage all SEC. 232. TRANSFER OF TESTING FUNDS FROM (5) The reasons for any changes in program PROGRAM ACCOUNTS TO INFRA- acquisition cost, program acquisition unit funds available to the Department of Defense STRUCTURE ACCOUNTS. for the support of investment in, operation cost, procurement cost, or procurement unit (a) TRANSFER OF FUNDS.—Notwithstanding cost, and the reasons for any changes in pro- and maintenance of, development of, and any other provision of this Act, amounts au- gram schedule. management of the test and evaluation fa- thorized to be appropriated by this title for (6) The major contracts under the program cilities and resources of the Major Range and demonstration and validation, engineering and the reasons for any changes in cost or Test Facility Base. All such funds shall be and manufacturing development, and oper- schedule variances under the contracts. transferred to and placed under the control ational systems development shall be trans- (7) The Test and Evaluation Master Plan of the head of the Department of Defense ferred to the major test and evaluation in- developed for the program in accordance Test and Evaluation Resource Enterprise. vestment programs of the military depart- with the requirements and guidance of De- ‘‘(B) Subparagraph (A) shall not be con- ments and to the Central Test and Evalua- partment of Defense regulation 5000.2–R. strued to authorize the head of the Test and tion Investment Program of the Department (b) FUNDING LIMITATION.—Not more than 50 Evaluation Enterprise, nor to impair the au- of Defense, as follows: percent of the amount authorized to be ap- thority of the Secretary of a military depart- (1) For transfer to the major test and eval- propriated by this Act for the United States ment, to manage the funds available to that uation investment program of the Army, the Missile Defense Agency for the Theater High military department for the support of in- amount equal to 0.625 percent of the total Altitude Area Defense program may be ex- vestment in, operation and maintenance of, amount authorized to be appropriated by pended until the submission of the report re- development of, and management of the this title for the Army for demonstration quired under subsection (a). training facilities and resources of the Major and validation, engineering and manufac- SEC. 225. REFERENCES TO NEW NAME FOR BAL- Range and Test Facility Base. turing development, and operational systems LISTIC MISSILE DEFENSE ORGANI- ‘‘(3) The head of the Test and Evaluation development. ZATION. Resource Enterprise shall— (2) For transfer to the major test and eval- (a) CONFORMING AMENDMENTS.—The fol- ‘‘(A) ensure that the planning for and exe- uation investment program of the Navy, the lowing provisions of law are amended by cution of the testing of a system within the amount equal to 0.625 percent of the total striking ‘‘Ballistic Missile Defense Organiza- Major Range and Test Facility Base is per- amount authorized to be appropriated by tion’’ each place it appears and inserting formed by the activity of a military depart- this title for the Navy for demonstration and ‘‘United States Missile Defense Agency’’: ment that is responsible for the testing; validation, engineering and manufacturing (1) Sections 223 and 224 of title 10, United ‘‘(B) ensure that the military department development, and operational systems devel- States Code. operating a facility or resource within the opment. (2) Sections 232, 233, and 235 of the National Major Range and Test Facility Base charges (3) For transfer to the major test and eval- Defense Authorization Act for Fiscal Year an organization using the facility or re- uation investment program of the Air Force, 2002 (Public Law 107–107). source for testing only the incremental cost the amount equal to 0.625 percent of the (b) OTHER REFERENCES.—Any reference to of the operation of the facility or resource the Ballistic Missile Defense Organization in total amount authorized to be appropriated that is attributable to the testing; any other provision of law or in any regula- by this title for the Air Force for demonstra- ‘‘(C) ensure that the military department tion, map, document, record, or other paper tion and validation, engineering and manu- operating a facility or resource within the of the United States shall be considered to be facturing development, and operational sys- Major Range and Test Facility Base com- a reference to the United States Missile De- tems development. fense Agency. prehensively and consistently applies sound (4) For transfer to the Central Test and enterprise management practices in the SEC. 226. LIMITATION ON USE OF FUNDS FOR NU- Evaluation Investment Program of the De- CLEAR ARMED INTERCEPTORS. management of the facility or resource; partment of Defense, the amount equal to None of the funds authorized to be appro- ‘‘(D) make investments that are prudent 0.625 percent of the total amount authorized priated by this or any other Act may be used for ensuring that Department of Defense test to be appropriated by this title for Defense- for research, development, test, evaluation, and evaluation facilities and resources are wide demonstration and validation, engi- procurement, or deployment of nuclear adequate to meet the current and future neering and manufacturing development, armed interceptors of a missile defense sys- testing requirements of Department of De- and operational systems development. tem. fense programs; (b) INSTITUTIONAL FUNDING OF TEST AND SEC. 227. REPORTS ON FLIGHT TESTING OF ‘‘(E) ensure that there is in place a sim- EVALUATION FACILITIES.—(1)(A) Chapter 433 GROUND-BASED MIDCOURSE NA- plified financial management and accounting of title 10, United States Code, is amended by TIONAL MISSILE DEFENSE SYSTEM. system for Department of Defense test and inserting after the table of sections at the (a) REQUIREMENT.—The Director of the evaluation facilities and resources and that beginning of such chapter the following new United States Missile Defense Agency shall the system is uniformly applied to the oper- section:

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6373 ‘‘§ 4531. Test and evaluation: use of facilities (3)(A) Chapter 933 of title 10, United States ducting test and evaluation activities in the Code, is amended by inserting after the table various facilities of the military depart- ‘‘(a) CHARGES FOR USE.—The Secretary of of sections at the beginning of such chapter ments. the Army may charge an entity for using a the following new section: (2) Enable the Secretary of Defense— facility or resource of the Army within the (A) to make prudent investment decisions; Major Range and Test Facility Base for test- ‘‘§ 9531. Test and evaluation: use of facilities and ing. The amount charged may not exceed the ‘‘(a) CHARGES FOR USE.—The Secretary of (B) to reduce the extent to which unneces- incremental cost to the Army of the use of the Air Force may charge an entity for using sary costs of owning and operating Depart- the facility or resource by that user for the a facility or resource of the Air Force within ment of Defense test and evaluation facili- testing. the Major Range and Test Facility Base for ties are incurred. ‘‘(b) INSTITUTIONAL AND OVERHEAD COSTS.— testing. The amount charged may not exceed (3) Enable the Department of Defense to The institutional and overhead costs of a fa- the incremental cost to the Air Force of the cility or resource of the Army that is within use of the facility or resource by that user track the total cost of test and evaluation the Major Range and Test Facility Base for the testing. activities. shall be paid out of the major test and eval- ‘‘(b) INSTITUTIONAL AND OVERHEAD COSTS.— (4) Comply with the financial management uation investment accounts of the Army, the The institutional and overhead costs of a fa- enterprise architecture developed by the Central Test and Evaluation Investment cility or resource of the Air Force that is Secretary of Defense under section 1006. Program of the Department of Defense, and within the Major Range and Test Facility SEC. 235. TEST AND EVALUATION WORKFORCE other appropriate appropriations made di- Base shall be paid out of the major test and IMPROVEMENTS. rectly to the Army. evaluation investment accounts of the Air (a) REPORT ON CAPABILITIES.—Not later ‘‘(c) MAJOR RANGE AND TEST FACILITY BASE Force, the Central Test and Evaluation In- than March 15, 2003, the Under Secretary of DEFINED.—In this section: vestment Program of the Department of De- Defense for Acquisition, Technology, and Lo- ‘‘(1) The term ‘Major Range and Test Facil- fense, and other appropriate appropriations gistics shall submit to Congress a report on ity Base’ has the meaning given the term in made directly to the Air Force. the capabilities of the test and evaluation section 139(k)(4) of this title. ‘‘(c) MAJOR RANGE AND TEST FACILITY BASE workforce of the Department of Defense. The ‘‘(2) The term ‘institutional and overhead DEFINED.—In this section: Under Secretary shall consult with the costs’, with respect to a facility or resource ‘‘(1) The term ‘Major Range and Test Facil- Under Secretary of Defense for Personnel within the Major Range Test and Facility ity Base’ has the meaning given the term in and Readiness and the Director of Oper- Base— section 139(k)(4) of this title. ational Test and Evaluation in preparing the ‘‘(A) means the costs of maintaining, oper- ‘‘(2) The term ‘institutional and overhead report. ating, upgrading, and modernizing the facil- costs’, with respect to a facility or resource (b) REQUIREMENT FOR PLAN.—(1) The report ity or resource; and within the Major Range Test and Facility shall contain a plan for taking the actions ‘‘(B) does not include an incremental cost Base— necessary to ensure that the test and evalua- of operating the facility or resource that is ‘‘(A) means the costs of maintaining, oper- tion workforce of the Department of Defense attributable to the use of the facility or re- ating, upgrading, and modernizing the facil- is of sufficient size and has the expertise nec- source for testing under a particular pro- ity or resource; and essary to timely and accurately identify gram.’’. ‘‘(B) does not include an incremental cost issues of military suitability and effective- (B) The table of section at the beginning of of operating the facility or resource that is ness of Department of Defense systems such chapter is amended by inserting before attributable to the use of the facility or re- through testing of the systems. the item relating to section 7522 the fol- source for testing under a particular pro- (2) The plan shall set forth objectives for lowing new item: gram.’’. the size, composition, and qualifications of (B) The table of section at the beginning of ‘‘4531. Test and evaluation: use of facilities.’’. the workforce, and shall specify the actions such chapter is amended by inserting before (2)(A) Chapter 645 of title 10, United States (including recruitment, retention, and train- the item relating to section 9532 the fol- Code, is amended by inserting after the table ing) and milestones for achieving the objec- lowing new item: of sections at the beginning of such chapter tives. the following new section: ‘‘9531. Test and evaluation: use of facilities.’’. (c) ADDITIONAL MATTERS.—The report shall (4) Not later than 30 days after the date of also include the following matters: ‘‘§ 7521. Test and evaluation: use of facilities the enactment of this Act, the Under Sec- (1) An assessment of the changing size and ‘‘(a) CHARGES FOR USE.—The Secretary of retary of Defense (Comptroller) shall review demographics of the test and evaluation the Navy may charge an entity for using a the funding policies of each military depart- workforce, including the impact of antici- facility or resource of the Navy within the ment to ensure that the Secretary of the pated retirements among the most experi- Major Range and Test Facility Base for test- military department has in place the policies enced personnel over the five-year period being. The amount charged may not exceed the necessary to comply with the Secretary’s re- ginning with 2003, together with a discussion incremental cost to the Navy of the use of sponsibilities under section 4531, 7521, or 9531 of the management actions necessary to ad- the facility or resource by that user for the of title 10, United States Code (as added by dress the changes. testing. this subsection), as the case may be. The (2) An assessment of the anticipated work- ‘‘(b) INSTITUTIONAL AND OVERHEAD COSTS.— Under Secretary shall consult with the Di- loads and responsibilities of the test and The institutional and overhead costs of a fa- rector of Operational Test and Evaluation in evaluation workforce over the ten-year pe- cility or resource of the Navy that is within carrying out the review. riod beginning with 2003, together with the the Major Range and Test Facility Base SEC. 233. INCREASED INVESTMENT IN TEST AND number and qualifications of military and ci- shall be paid out of the major test and eval- EVALUATION FACILITIES. vilian personnel necessary to carry out such uation investment accounts of the Navy, the (a) AMOUNT.—Of the amount authorized to workloads and responsibilities. Central Test and Evaluation Investment be appropriated under section 201(4), (3) The Secretary’s specific plans for using Program of the Department of Defense, and $251,276,000 shall be available for the Central the demonstration authority provided in sec- other appropriate appropriations made di- Test and Evaluation Investment Program of tion 4308 of the National Defense Authoriza- rectly to the Navy. the Department of Defense. tion Act for Fiscal Year 1996 (Public Law (b) ADDITIONAL AVAILABLE FUNDING.—In ‘‘(c) MAJOR RANGE AND TEST FACILITY BASE 104–106; 10 U.S.C. 1701 note) and other special addition to the amount made available under DEFINED.—In this section: personnel management authorities of the subsection (a), amounts transferred pursuant ‘‘(1) The term ‘Major Range and Test Facil- Secretary to attract and retain qualified per- to section 232(a)(4) shall be available for the ity Base’ has the meaning given the term in sonnel in the test and evaluation workforce. Central Test and Evaluation Investment section 139(k)(4) of this title. (4) Any recommended legislation or addi- Program of the Department of Defense. ‘‘(2) The term ‘institutional and overhead tional special authority that the Secretary costs’, with respect to a facility or resource SEC. 234. UNIFORM FINANCIAL MANAGEMENT considers appropriate for facilitating the re- within the Major Range Test and Facility SYSTEM FOR DEPARTMENT OF DE- FENSE TEST AND EVALUATION FA- cruitment and retention of qualified per- Base— CILITIES. sonnel for the test and evaluation workforce. ‘‘(A) means the costs of maintaining, oper- (a) REQUIREMENT FOR SYSTEM.—Not later (5) Any other matters that are relevant to ating, upgrading, and modernizing the facil- than two years after the date of the enact- the capabilities of the test and evaluation ity or resource; and ment of this Act, the Secretary of Defense workforce. ‘‘(B) does not include an incremental cost shall implement a single financial manage- SEC. 236. COMPLIANCE WITH TESTING REQUIRE- of operating the facility or resource that is ment and accounting system for all test and MENTS. attributable to the use of the facility or re- evaluation facilities of the Department of (a) ANNUAL OT&E REPORT.—Subsection (g) source for testing under a particular pro- Defense. of section 139 of title 10, United States Code, gram.’’. (b) SYSTEM FEATURES.—The financial man- is amended by inserting after the fourth sen- (B) The table of section at the beginning of agement and accounting system shall be de- tence the following: ‘‘The report for a fiscal such chapter is amended by inserting before signed to achieve, at a minimum, the fol- year shall also include an assessment of the the item relating to section 7522 the following functional objectives: waivers of and deviations from requirements lowing new item: (1) Enable managers within the Depart- in test and evaluation master plans and ‘‘7521. Test and evaluation: use of facilities.’’. ment of Defense to compare the costs of con- other testing requirements that occurred

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 S6374 CONGRESSIONAL RECORD — SENATE July 8, 2002 during the fiscal year, any concerns raised private sector organizations, educational in- participating in the pilot program under sub- by the waivers or deviations, and the actions stitutions (including primary and secondary section (a) or in one of the fiscal years 1999 that have been taken or are planned to be schools), and State and local governments to and 2000 revitalization pilot programs to taken to address the concerns.’’. facilitate the training of a future scientific enter into a cooperative arrangement (in (b) REORGANIZATION OF PROVISION.—Sub- and technical workforce that will contribute this subsection referred to as a ‘‘public-pri- section (g) of such section, as amended by significantly to the accomplishment of orga- vate partnership’’) with entities in the pri- subsection (a), is further amended— nizational missions. vate sector and institutions of higher edu- (1) by inserting ‘‘(1)’’ after ‘‘(g)’’; (C) To develop or expand innovative meth- cation for the performance of work. (2) by designating the second sentence as ods of establishing cooperative relationships (2) A competitive process shall be used for paragraph (2); and arrangements with private sector orga- the selection of entities outside the Govern- (3) by designating the third sentence as nizations and educational institutions to ment to participate in a public-private part- paragraph (3); promote the establishment of the techno- nership. (4) by designating the matter consisting of logical industrial base in areas critical for (3)(A) Not more than one public-private the fourth and fifth sentences as paragraph Department of Defense technological re- partnership may be established as a limited (4); quirements. liability corporation. (B) An entity participating in a limited li- (5) by designating the sixth sentence as (D) To waive any restrictions not required ability corporation as a party to a public-pri- paragraph (5); and by law that apply to the demonstration and vate partnership under the pilot program (6) by realigning paragraphs (2), (3), (4), and implementation of methods for achieving the may contribute funds to the corporation, ac- (5), as so designated, two ems from the left objectives set forth in subparagraphs (A), cept contribution of funds for the corpora- margin. (B), and (C). (3) The Secretary may carry out the pilot tion, and provide materials, services, and use SEC. 237. REPORT ON IMPLEMENTATION OF DE- of facilities for research, technology, and in- program under this subsection at each se- FENSE SCIENCE BOARD REC- frastructure of the corporation, if it is deter- OMMENDATIONS. lected laboratory for a period of three years mined under regulations prescribed by the (a) REQUIREMENT.—Not later than March 1, beginning not later than March 1, 2003. Secretary of Defense that doing so will im- 2003, the Secretary of Defense shall submit (b) RELATIONSHIP TO FISCAL YEARS 1999 AND prove the efficiency of the performance of re- to the congressional defense committees a 2000 REVITALIZATION PILOT PROGRAMS.—The search, test, and evaluation functions of the report on the extent of the implementation pilot program under this section is in addition to, but may be carried out in conjunc- Department of Defense. of the recommendations set forth in the De- (f) EXCEPTED SERVICE UNDER PILOT PRO- tion with, the fiscal years 1999 and 2000 revi- cember 2000 Report of the Defense Science GRAM.—(1) To facilitate recruitment of ex- talization pilot programs. Board Task Force on Test and Evaluation perts in science and engineering to improve (c) REPORTS.—(1) Not later than January 1, Capabilities. the performance of research, test, and eval- 2003, the Secretary shall submit to Congress (b) CONTENT.—The report shall include the uation functions of the Department of De- a report on the experience under the fiscal following: fense, the Secretary of Defense may— years 1999 and 2000 revitalization pilot pro- (1) For each recommendation that is being (A) designate a total of not more than 30 grams in exercising the authorities provided implemented or that the Secretary plans to scientific, engineering, and technology posi- for the administration of those programs. implement— tions at the laboratories and test centers The report shall include a description of— (A) a summary of all actions that have participating in the pilot program under sub- (A) barriers to the exercise of the authori- been taken to implement the recommenda- section (a) or in any of the fiscal years 1999 ties that have been encountered; tion; and and 2000 revitalization pilot programs as po- (B) the proposed solutions for overcoming (B) a schedule, with specific milestones, for sitions in the excepted service (as defined in the barriers; and completing the implementation of the rec- section 2103(a) of title 5, United States Code); (C) the progress made in overcoming the ommendation. (B) appoint individuals to such positions; (2) For each recommendation that the Sec- barriers. (2) Not later than September 1, 2003, the and retary does not plan to implement— (C) fix the compensation of such individ- (A) the reasons for the decision not to im- Secretary of Defense shall submit to Con- gress a report on the implementation of the uals. plement the recommendation; and (2) The maximum rate of basic pay for a pilot program under subsection (a) and the (B) a summary of any alternative actions position in the excepted service pursuant to fiscal years 1999 and 2000 revitalization pilot the Secretary plans to take to address the a designation made under paragraph (1) may programs. The report shall include, for each purposes underlying the recommendation. not exceed the maximum rate of basic pay such pilot program, the following: (3) A summary of any additional actions authorized for senior-level positions under (A) Each laboratory selected for the pilot the Secretary plans to take to address con- section 5376 of title 5, United States Code, program. cerns raised in the December 2000 Report of notwithstanding any provision of such title the Defense Science Board Task Force on (B) To the extent practicable, a description governing the rates of pay or classification Test and Evaluation Capabilities about the of the innovative methods that are to be of employees in the executive branch. state of the test and evaluation infrastruc- tested at each laboratory. (g) FISCAL YEARS 1999 AND 2000 REVITALIZA- ture of the Department of Defense. (C) The criteria to be used for measuring TION PILOT PROGRAMS DEFINED.—In this sec- the success of each method to be tested. Subtitle E—Other Matters tion, the term ‘‘fiscal years 1999 and 2000 re- (3) Not later than 90 days after the expira- vitalization pilot programs’’ means the pilot SEC. 241. PILOT PROGRAMS FOR REVITALIZING tion of the period for the participation of a programs authorized by— DEPARTMENT OF DEFENSE LABORA- laboratory in a pilot program referred to in TORIES. (1) section 246 of the Strom Thurmond Na- paragraph (2), the Secretary of Defense shall tional Defense Authorization Act for Fiscal (a) ADDITIONAL PILOT PROGRAM.—(1) The submit to Congress a final report on the par- Year 1999 (Public Law 105–261; 112 Stat. 1955; Secretary of Defense may carry out a pilot ticipation of that laboratory in the pilot pro- program to demonstrate improved efficiency 10 U.S.C. 2358 note); and gram. The report shall include the following: (2) section 245 of the National Defense Au- in the performance of research, development, (A) A description of the methods tested. test, and evaluation functions of the Depart- thorization Act for Fiscal Year 2000 (Public (B) The results of the testing. Law 106–65; 113 Stat. 552; 10 U.S.C. 2358 note). ment of Defense. (C) The lessons learned. SEC. 242. TECHNOLOGY TRANSITION INITIATIVE. (2) Under the pilot program, the Secretary (D) Any proposal for legislation that the of Defense shall provide the director of one (a) ESTABLISHMENT AND CONDUCT.—(1) Secretary recommends on the basis of the Chapter 139 of title 10, United States Code, is science and technology laboratory, and the experience at that laboratory under the pilot director of one test and evaluation labora- amended by inserting after section 2359 the program. following new section: tory, of each military department with au- (d) EXTENSION OF AUTHORITY FOR OTHER thority for the following: REVITALIZATION PILOT PROGRAMS.—(1) Sec- ‘‘§ 2359a. Technology Transition Initiative (A) To use innovative methods of personnel tion 246(a)(4) of the Strom Thurmond Na- ‘‘(a) REQUIREMENT FOR PROGRAM.—The Sec- management appropriate for ensuring that tional Defense Authorization Act for Fiscal retary of Defense shall carry out a Tech- the selected laboratories can— Year 1999 (Public Law 105–261; 112 Stat. 1956; nology Transition Initiative to facilitate the (i) employ and retain a workforce appro- 10 U.S.C. 2358 note) is amended by striking rapid transition of new technologies from priately balanced between permanent and ‘‘a period of three years’’ and inserting ‘‘up science and technology programs of the De- temporary personnel and among workers to six years’’. partment of Defense into acquisition pro- with appropriate levels of skills and experi- (2) Section 245(a)(4) of the National Defense grams for the production of the technologies. ence; and Authorization Act for Fiscal Year 2000 (Pub- ‘‘(b) OBJECTIVES.—The objectives of the (ii) effectively shape workforces to ensure lic Law 106–65; 113 Stat. 553; 10 U.S.C. 2358 Initiative are as follows: that the workforces have the necessary sets note) is amended by striking ‘‘a period of ‘‘(1) To accelerate the introduction of new of skills and experience to fulfill their orga- three years’’ and inserting ‘‘up to five technologies into Department of Defense ac- nizational missions. years’’. quisition programs appropriate for the tech- (B) To develop or expand innovative meth- (e) PARTNERSHIPS UNDER PILOT PROGRAM.— nologies. ods of entering into and expanding coopera- (1) The Secretary of Defense may authorize ‘‘(2) To successfully demonstrate new tech- tive relationships and arrangements with one or more laboratories and test centers nologies in relevant environments.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6375 ‘‘(3) To ensure that new technologies are ‘‘(2) The Technology Transition Council relevant Defense Agencies, industry, aca- sufficiently mature for production. shall provide advice and assistance to the demia, and other private sector organiza- ‘‘(c) MANAGEMENT.—(1) The Secretary of Initiative Manager under this section. tions. Defense shall designate a senior official in ‘‘(f) DEFINITIONS.—In this section: (3) The panel shall review and evaluate the Office of the Secretary of Defense to ‘‘(1) The term ‘acquisition executive’, with proposals that, as determined by the panel, manage the Initiative. respect to a military department, means the may present a unique and valuable approach ‘‘(2) In administering the Initiative, the official designated as the senior procurement for meeting a defense requirement or tech- Initiative Manager shall— executive for that military department nology development goal related to com- ‘‘(A) report directly to the Under Secretary under section 16(3) of the Office of Federal bating terrorism. In carrying out duties of Defense for Acquisition, Technology, and Procurement Policy Act (41 U.S.C. 414(3)). under this paragraph, the panel may act Logistics; and ‘‘(2) The term ‘Initiative’ means the Tech- through representatives designated by the ‘‘(B) obtain advice and other assistance nology Transition Initiative carried out panel. from the Technology Transition Council es- under this section. (4) The panel shall— tablished under subsection (e). ‘‘(3) The term ‘Initiative Manager’ means (A) within 60 days after receiving such a ‘‘(3) The Initiative Manager shall— the official designated to manage the Initia- proposal, transmit to the source of the pro- ‘‘(A) in consultation with the Technology tive under subsection (c).’’. posal a notification regarding whether the Transition Council established under sub- (2) The table of sections at the beginning of proposal has been selected for review by the section (e), identify promising technologies such chapter is amended by inserting after panel; that have been demonstrated in science and the item relating to section 2395 the fol- (B) to the maximum extent practicable, technology programs of the Department of lowing new item: complete the review of each selected pro- Defense; ‘‘2359a. Technology Transition Initiative.’’. posal within 120 days after the proposal is se- ‘‘(B) develop a list of those technologies (b) AUTHORIZATION OF APPROPRIATIONS.—Of lected for review by the panel; and that have promising potential for transition the amount authorized to be appropriated (C) after completing the review, transmit into acquisition programs of the Department under section 201(4), $50,000,000 shall be avail- an evaluation of the proposal to the source of Defense and transmit the list to the acqui- able for the Technology Transition Initiative of the proposal. sition executive of each military department under section 2359a of title 10, United States (5) The Secretary shall ensure that the and to Congress; Code (as added by subsection (a)), and for panel, in reviewing and evaluating proposals ‘‘(C) identify potential sponsors in the De- other technology transition activities of the under this subsection, has the authority to partment of Defense to undertake the transi- Department of Defense. obtain assistance, to a reasonable extent, tion of such technologies into production; SEC. 243. ENCOURAGEMENT OF SMALL BUSI- from the appropriate technical resources of ‘‘(D) work with the science and technology NESSES AND NONTRADITIONAL DE- the laboratories, research, development, and community and the acquisition community FENSE CONTRACTORS TO SUBMIT engineering centers, test and evaluation ac- to develop memoranda of agreement, joint PROPOSALS POTENTIALLY BENE- tivities, and other elements of the Depart- funding agreements, and other cooperative FICIAL FOR COMBATING TER- ment of Defense. RORISM. arrangements to provide for the transition of (6) If, after completing the review of a pro- (a) ESTABLISHMENT OF OUTREACH PRO- the technologies into production; and posal, the panel determines that the proposal GRAM.—During the 3-year period beginning ‘‘(E) provide funding support for selected represents a unique and valuable approach to on the date of the enactment of this Act, the projects under subsection (d). meeting a defense requirement or technology ‘‘(d) JOINTLY FUNDED PROJECTS.—(1) The Secretary of Defense shall carry out a pro- development goal related to combating ter- acquisition executive of each military de- gram of outreach to small businesses and rorism, the panel shall submit that deter- partment shall select technology projects of nontraditional defense contractors for the mination to the Under Secretary of Defense the military department to recommend for purpose set forth in subsection (b). for Acquisition, Technology, and Logistics funding support under the Initiative and (b) PURPOSE.—The purpose of the outreach shall submit a list of the recommended program is to provide a process for reviewing together with any recommendations that the projects, ranked in order of priority, to the and evaluating research activities of, and panel considers appropriate regarding the Initiative Manager. The projects shall be se- new technologies being developed by, small proposal. lected, in a competitive process, on the basis businesses and nontraditional defense con- (7) The Secretary of Defense shall ensure of the highest potential benefits in areas of tractors that have the potential for meeting that there is no conflict of interest on the interest identified by the Secretary of that a defense requirement or technology devel- part of a member of the panel with respect to military department. opment goal of the Department of Defense the review and evaluation of a proposal by ‘‘(2) The Initiative Manager, in consulta- that relates to the mission of the Depart- the panel. EFINITIONS.—In this section: tion with the Technology Transition Council ment of Defense to combat terrorism. (e) D (1) The term ‘‘nontraditional defense con- established under subsection (e), shall select (c) GOALS.—The goals of the outreach pro- projects for funding support from among the gram are as follows: tractor’’ means an entity that has not, for at projects on the lists submitted under para- (1) To increase efforts within the Depart- least one year prior to the date of the enact- graph (1). The Initiative Manager shall pro- ment of Defense to survey and identify tech- ment of this Act, entered into, or performed vide funds for each selected project. The nologies being developed outside the Depart- with respect to, any contract described in total amount provided for a project shall be ment that have the potential described in paragraph (1) or (2) of section 845(e) of the determined by agreement between the Initia- subsection (b). National Defense Authorization Act for Fis- tive Manager and the acquisition executive (2) To provide the Under Secretary of De- cal Year 1994 (10 U.S.C. 2371 note). of the military department concerned, but fense for Acquisition, Technology, and Logis- (2) The term ‘‘small business’’ means a shall not be less than the amount equal to 50 tics with a source of expert advice on new business concern that meets the applicable percent of the total cost of the project. size standards prescribed pursuant to section ‘‘(3) The Initiative Manager shall not fund technologies for combating terrorism. (3) To increase efforts to educate nontradi- 3(a) of the Small Business Act (15 U.S.C. any one project under this subsection for 632(a)). more than 3 years. tional defense contractors on Department of ‘‘(4) The acquisition executive of the mili- Defense acquisition processes, including reg- SEC. 244. VEHICLE FUEL CELL PROGRAM. tary department shall manage each project ulations, procedures, funding opportunities, (a) PROGRAM.—The Secretary of Defense selected under paragraph (2) that is under- military needs and requirements, and tech- shall carry out a vehicle fuel cell technology taken by the military department. Memo- nology transfer so as to encourage such con- development program in cooperation with randa of agreement, joint funding agree- tractors to submit proposals regarding re- the Secretary of Energy, the heads of other ments, and other cooperative arrangements search activities and technologies described Federal agencies appropriate for participa- between the science and technology commu- in subsection (b). tion in the program, and industry. nity and the acquisition community shall be (4) To increase efforts to provide timely re- (b) GOALS AND OBJECTIVES.—The goals and used in carrying out the project if the acqui- sponse by the Department of Defense to ac- objectives of the program shall be as follows: sition executive determines that it is appro- quisition proposals (including unsolicited (1) To identify and support technological priate to do so to achieve the objectives of proposals) submitted to the Department by advances that are necessary for the develop- the project. small businesses and by nontraditional de- ment of fuel cell technology for use in vehi- ‘‘(e) TECHNOLOGY TRANSITION COUNCIL.—(1) fense contractors regarding research activi- cles of types to be used by the Department of There is a Technology Transition Council in ties and technologies described in subsection Defense. the Department of Defense. The Council is (b), including through the use of electronic (2) To ensure that critical technology ad- composed of the following members: transactions to facilitate the processing of vances are shared among the various fuel ‘‘(A) The science and technology execu- proposals. cell technology programs within the Federal tives of the military departments and De- (d) REVIEW PANEL.—(1) The Secretary shall Government. fense Agencies. appoint, under the outreach program, a (3) To ensure maximum leverage of Federal ‘‘(B) The acquisition executives of the panel for the review and evaluation of pro- Government funding for fuel cell technology military departments. posals described in subsection (c)(4). development. ‘‘(C) The members of the Joint Require- (2) The panel shall be composed of qualified (c) CONTENT OF PROGRAM.—The program ments Oversight Council. personnel from the military departments, shall include—

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(1) development of vehicle propulsion tech- (d) ANNUAL REPORT.—Not later than March (b) REPORT ON ADMINISTRATION OF PRO- nologies and fuel cell auxiliary power units, 1 of each of 2004, 2005, 2006, and 2007, the Di- GRAM.—(1) Not later than December 31, 2002, together with pilot demonstrations of such rector of Defense Research and Engineering the Director of the Defense Advanced Re- technologies, as appropriate; and shall submit to the congressional defense search Projects Agency shall submit to the (2) development of technologies necessary committees a report on the program. The re- congressional defense committees a report to address critical issues such as hydrogen port shall contain the following matters: on the proposal of the Director for the ad- storage and the need for a hydrogen fuel in- (1) A review of— ministration of the program to award prizes frastructure. (A) the long-term challenges and specific for advanced technology achievements under (d) COOPERATION WITH INDUSTRY.—(1) The goals of the program; and section 2374a of title 10, United States Code. Secretary shall include the automobile and (B) the progress made toward meeting the (2) The report shall include the following: truck manufacturing industry and its sys- challenges and achieving the goals. (A) A description of the proposed goals of tems and component suppliers in the cooper- (2) An assessment of current and proposed the competition under the program, includ- ative involvement of industry in the pro- funding levels, including the adequacy of ing the technology areas to be promoted by gram. such funding levels to support program ac- the competition and the relationship of such (2) The Secretary of Defense shall consider tivities. area to military missions of the Department whether, in order to facilitate the coopera- (3) A review of the coordination of activi- of Defense. tion of industry in the program, the Sec- ties within the Department of Defense and (B) The proposed rules of the competition retary and one or more companies in indus- with other departments and agencies. under the program and a description of the try should enter into a cooperative agree- (4) An assessment of the extent to which proposed management of the competition. ment that establishes an entity to carry out effective technology transition paths have (C) A description of the manner in which activities required under subsection (c). An been established as a result of activities funds for cash prizes under the program will entity established by any such agreement under the program. be allocated within the accounts of the shall be known as a defense industry fuel cell (5) Recommendations for additional pro- Agency if a prize is awarded and claimed. partnership. gram activities to meet emerging national (D) A statement of the reasons why the (3) The Secretary of Defense shall provide security requirements. competition is a preferable means of pro- for industry to bear, in cash or in kind, at SEC. 246. ACTIVITIES AND ASSESSMENT OF THE moting basic, advanced, and applied re- least one-half of the total cost of carrying DEFENSE EXPERIMENTAL PROGRAM search, technology development, or proto- out the program. TO STIMULATE COMPETITIVE RE- type projects than other means of promotion (e) AMOUNT FOR PROGRAM.—Of the amount SEARCH. of such activities, including contracts, authorized to be appropriated by section (a) AUTHORIZED ACTIVITIES.—Subsection (c) grants, cooperative agreements, and other 201(4), $10,000,000 shall be available for the of section 257 of the National Defense Au- transactions. program required by this section. thorization Act for Fiscal Year 1995 (Public TITLE III—OPERATION AND SEC. 245. DEFENSE NANOTECHNOLOGY RE- Law 103–337; 10 U.S.C. 2358 note), is MAINTENANCE SEARCH AND DEVELOPMENT PRO- amended— GRAM. (1) in paragraph (1), by striking ‘‘research Subtitle A—Authorization of Appropriations (a) ESTABLISHMENT.—The Secretary of De- grants’’ and inserting ‘‘grants for research SEC. 301. OPERATION AND MAINTENANCE FUND- fense shall carry out a defense and instrumentation to support such re- ING. nanotechnology research and development search’’; and (a) AUTHORIZATION OF APPROPRIATIONS.— program. (2) by adding at the end the following new Funds are hereby authorized to be appro- (b) PURPOSES.—The purposes of the pro- paragraph: priated for fiscal year 2003 for the use of the gram are as follows: ‘‘(3) Any other activities that are deter- Armed Forces and other activities and agen- (1) To ensure United States global superi- mined necessary to further the achievement cies of the Department of Defense for ex- ority in nanotechnology necessary for meet- of the objectives of the program.’’. penses, not otherwise provided for, for oper- ing national security requirements. (b) COORDINATION.—Subsection (e) of such ation and maintenance, in amounts as fol- (2) To coordinate all nanoscale research section is amended by adding at the end the lows: and development within the Department of following: (1) For the Army, $24,180,742,000. Defense, and to provide for interagency co- ‘‘(4) The Secretary shall contract with the (2) For the Navy, $29,368,961,000. operation and collaboration on nanoscale re- National Research Council to assess the ef- (3) For the Marine Corps, $3,558,732,000. search and development between the Depart- fectiveness of the Defense Experimental Pro- (4) For the Air Force, $27,445,764,000. ment of Defense and other departments and gram to Stimulate Competitive Research in (5) For Defense-wide activities, agencies of the United States that are in- achieving the program objectives set forth in $14,492,266,000. volved in nanoscale research and develop- subsection (b). The assessment provided to (6) For the Army Reserve, $1,962,610,000. ment. the Secretary shall include the following: (7) For the Naval Reserve, $1,233,759,000. (3) To develop and manage a portfolio of ‘‘(A) An assessment of the eligibility re- (8) For the Marine Corps Reserve, fundamental and applied nanoscience and en- quirements of the program and the relation- $190,532,000. gineering research initiatives that is stable, ship of such requirements to the overall re- (9) For the Air Force Reserve, $2,165,004,000. consistent, and balanced across scientific search base in the States, the stability of re- (10) For the Army National Guard, disciplines. search initiatives in the States, and the $4,506,267,000. (4) To accelerate the transition and deploy- achievement of the program objectives, to- (11) For the Air National Guard, ment of technologies and concepts derived gether with any recommendations for modi- $4,114,910,000. from nanoscale research and development fication of the eligibility requirements. (12) For the Defense Inspector General, into the Armed Forces, and to establish poli- ‘‘(B) An assessment of the program struc- $155,165,000. cies, procedures, and standards for meas- ture and the effects of that structure on the (13) For the United States Court of Appeals uring the success of such efforts. development of a variety of research activi- for the Armed Forces, $9,614,000. (5) To collect, synthesize, and disseminate ties in the States and the personnel available (14) For Environmental Restoration, Army, critical information on nanoscale research to carry out such activities, together with $395,900,000. and development. any recommendations for modification of (15) For Environmental Restoration, Navy, (c) ADMINISTRATION.—In carrying out the program structure, funding levels, and fund- $256,948,000. program, the Secretary shall act through the ing strategy. (16) For Environmental Restoration, Air Director of Defense Research and Engineer- ‘‘(C) An assessment of the past and ongoing Force, $389,773,000. ing, who shall supervise the planning, man- activities of the State planning committees (17) For Environmental Restoration, De- agement, and coordination of the program. in supporting the achievement of the pro- fense-wide, $23,498,000. The Director, in consultation with the Secre- gram objectives. (18) For Environmental Restoration, For- taries of the military departments and the ‘‘(D) An assessment of the effects of the merly Used Defense Sites, $252,102,000. heads of participating Defense Agencies and various eligibility requirements of the var- (19) For Overseas Humanitarian, Disaster, other departments and agencies of the ious Federal programs to stimulate competi- and Civic Aid programs, $58,400,000. United States, shall— tive research on the ability of States to de- (20) For Drug Interdiction and Counter- (1) prescribe a set of long-term challenges velop niche research areas of expertise, ex- drug Activities, Defense-wide, $873,907,000. and a set of specific technical goals for the ploit opportunities for developing inter- (21) For the Kaho’olawe Island Conveyance, program; disciplinary research initiatives, and achieve Remediation, and Environmental Restora- (2) develop a coordinated and integrated program objectives.’’. tion Trust Fund, $25,000,000. research and investment plan for meeting (22) For Defense Health Program, SEC. 247. FOUR-YEAR EXTENSION OF AUTHORITY the long-term challenges and achieving the OF DARPA TO AWARD PRIZES FOR $14,202,441,000. specific technical goals; and ADVANCED TECHNOLOGY ACHIEVE- (23) For Cooperative Threat Reduction pro- (3) develop memoranda of agreement, joint MENTS. grams, $416,700,000. funding agreements, and other cooperative (a) EXTENSION.—Section 2374a(f) of title 10, (24) For Overseas Contingency Operations arrangements necessary for meeting the United States Code, is amended by striking Transfer Fund, $50,000,000. long-term challenges and achieving the spe- ‘‘September 30, 2003’’ and inserting ‘‘Sep- (25) For Support for International Sporting cific technical goals. tember 30, 2007’’. Competitions, Defense, $19,000,000.

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(b) ADJUSTMENT.—The total amount au- (c) OFFSET.—The amount authorized to be of section 6002 of the Solid Waste Disposal thorized to be appropriated pursuant to sub- appropriated by section 201(1) for research, Act (42 U.S.C. 6962). section (a) is reduced by— development, test, and evaluation for the (3) In establishing goals under paragraph (1) $159,790,000, which represents savings re- Army is hereby reduced by $100,000. (1), the Secretary shall review the Com- sulting from reduced travel; and SEC. 307. DISPOSAL OF OBSOLETE VESSELS OF prehensive Procurement Guidelines and (2) $615,200,000, which represents savings re- THE NATIONAL DEFENSE RESERVE Guidance on Acquisition of Environmentally sulting from foreign currency fluctuations. FLEET. Preferable Products and Services developed SEC. 302. WORKING CAPITAL FUNDS. Of the amount authorized to be appro- pursuant to Executive Order 13101 and prod- Funds are hereby authorized to be appropriated by section 301(a)(2) for operation and ucts identified as environmentally preferable priated for fiscal year 2003 for the use of the maintenance for the Navy, $20,000,000 may be in the Federal Logistics Information Sys- Armed Forces and other activities and agen- available, without fiscal year limitation if so tem. cies of the Department of Defense for pro- provided in appropriations Acts, for expenses (4) In establishing goals under paragraph viding capital for working capital and re- related to the disposal of obsolete vessels in (1), the Secretary shall establish a procure- volving funds in amounts as follows: the Maritime Administration National De- ment goal for each category of procurement (1) For the Defense Working Capital Funds, fense Reserve Fleet. items that is environmentally preferable or $387,156,000. Subtitle B—Environmental Provisions is made with recovered materials. (2) For the National Defense Sealift Fund, (5) The goals established under paragraph SEC. 311. ENHANCEMENT OF AUTHORITY ON CO- (1) shall apply to Department purchases in $934,129,000. OPERATIVE AGREEMENTS FOR ENVI- (3) For the Defense Commissary Agency RONMENTAL PURPOSES. each category of procurement items des- Working Capital Fund, $969,200,000. Section 2701(d) of title 10, United States ignated by the Secretary for purposes of (4) For the Pentagon Reservation Mainte- Code, is amended— paragraph (4), but shall not apply to— nance Revolving Fund, $328,000,000. (1) by redesignating paragraphs (2) and (3) (A) products or services purchased by De- SEC. 303. ARMED FORCES RETIREMENT HOME. as paragraphs (3) and (4), respectively; and partment contractors and subcontractors, There is hereby authorized to be appro- (2) by inserting after paragraph (1) the fol- even if such products or services are incor- priated for fiscal year 2003 from the Armed lowing new paragraph (2): porated into procurement items purchased by the Department; or Forces Retirement Home Trust Fund the ‘‘(2) CROSS-FISCAL YEAR AGREEMENTS.—An sum of $69,921,000 for the operation of the agreement with an agency under paragraph (B) credit card purchases or other local Armed Forces Retirement Home, including (1) may be for a period that begins in one fis- purchases that are made outside the requisi- the Armed Forces Retirement Home—Wash- cal year and ends in another fiscal year if tioning process of the Department. (b) ASSESSMENT OF TRAINING AND EDU- ington and the Armed Forces Retirement (without regard to any option to extend the CATION.—The Secretary shall assess the need Home—Gulfport. period of the agreement) the period of the to establish a program, or enhance existing SEC. 304. RANGE ENHANCEMENT INITIATIVE agreement does not exceed two years.’’. FUND. programs, for training and educating Depart- SEC. 312. MODIFICATION OF AUTHORITY TO ment of Defense procurement officials and (a) AVAILABILITY OF FUNDS.—Of the CARRY OUT CONSTRUCTION amount authorized to be appropriated by PROJECTS FOR ENVIRONMENTAL contractors to ensure that they are aware of section 301(a)(5) for operation and mainte- RESPONSES. Department requirements, preferences, and nance for defense-wide activities, $20,000,000 (a) RESTATEMENT AND MODIFICATION OF AU- goals for the procurement of items that are shall be available for the Range Enhance- THORITY.—(1) Chapter 160 of title 10, United environmentally preferable or are made with ment Initiative Fund for the purpose speci- States Code, is amended by adding at the end recovered materials. fied in subsection (b). the following new section: (c) TRACKING SYSTEM.—The Secretary shall (b) PURPOSE.—Subject to subsection (c), develop a tracking system to identify the ex- ‘‘§ 2711. Environmental restoration projects tent to which the Department of Defense is amounts authorized to be appropriated for for environmental responses the Range Enhancement Initiative Fund procuring items that are environmentally shall be available to the Secretary of De- ‘‘(a) The Secretary of Defense or the Sec- preferable or are made with recovered mate- fense and the Secretaries of the military de- retary of a military department may carry rials. The tracking system shall separately partments to purchase restrictive easements, out an environmental restoration project if track procurement of each category of pro- including easements that implement agree- that Secretary determines that the project is curement items for which a goal has been es- ments entered into under section 2697 of title necessary to carry out a response under this tablished under subsection (a)(4). 10, United States Code, as added by section chapter or CERCLA. (d) INITIAL REPORT.—Not later than 120 ‘‘(b) Any construction, development, con- 2811 of this Act. days after the date of the enactment of this (c) TRANSFER OF AMOUNTS.—(1) Amounts in version, or extension of a structure or instal- Act, the Secretary shall submit to the con- the Range Enhancement Initiative Fund lation of equipment that is included in an gressional defense committees a report that shall, subject to applicable limitations in ap- environmental restoration project may not sets forth— propriations Acts, be made available to the be considered military construction (as that (1) the initial goals the Secretary plans to Secretary of a military department under term is defined in section 2801(a) of this establish under subsection (a); and subsection (b) by transfer from the Fund to title). (2) the findings of the Secretary as a result the applicable operation and maintenance ‘‘(c) Funds authorized for deposit in an ac- of the assessment under subsection (b), to- account of the military department, includ- count established by section 2703(a) of this gether with any recommendations of the ing the operation and maintenance account title shall be the only source of funds to con- Secretary as a result of the assessment. for the active component, or for a reserve duct an environmental restoration project (e) IMPLEMENTATION.—Not later than 180 component, of the military department. under this section. days after the date of the enactment of this (2) Authority to transfer amounts under ‘‘(d) In this section, the term ‘environ- Act, the Secretary shall— paragraph (1) is in addition to any other au- mental restoration project’ includes con- (1) establish an initial set of goals in ac- thority to transfer funds under this Act. struction, development, conversion, or ex- cordance subsection (a); tension of a structure or installation of SEC. 305. NAVY PILOT HUMAN RESOURCES CALL (2) begin the implementation of any rec- CENTER, CUTLER, MAINE. equipment in direct support of a response.’’. ommendations of the Secretary under sub- Of the amount authorized to be appro- (2) The table of sections at the beginning of section (d)(2) as a result of the assessment priated by section 301(a)(2) for operation and that chapter is amended by adding at the end under subsection (b); and maintenance for the Navy, $1,500,000 may be the following new item: (3) implement the tracking system re- available for the Navy Pilot Human Re- ‘‘2711. Environmental restoration projects quired by subsection (c). sources Call Center, Cutler, Maine. for environmental responses.’’. (f) ANNUAL REPORT.—Not later than March SEC. 306. NATIONAL ARMY MUSEUM, FORT (b) REPEAL OF SUPERSEDED PROVISION.—(1) 1 of each year from 2004 through 2007, the BELVOIR, VIRGINIA. Section 2810 of title 10, United States Code, Secretary shall submit to Congress a report (a) ACTIVATION EFFORTS.—The Secretary of is repealed. on the progress made in the implementation the Army may carry out efforts to facilitate (2) The table of sections at the beginning of of this section. Each report shall— the commencement of development for the chapter 169 of that title is amended by strik- (1) identify each category of procurement National Army Museum at Fort Belvoir, Vir- ing the item relating to section 2810. items for which a goal has been established ginia. SEC. 313. INCREASED PROCUREMENT OF ENVI- under subsection (a) as of the end of such (b) FUNDING.—(1) The amount authorized to RONMENTALLY PREFERABLE PROD- year; and be appropriated by section 301(a)(1) for oper- UCTS. (2) provide information from the tracking ation and maintenance for the Army is here- (a) PROCUREMENT GOALS.—(1) The Sec- system required by subsection (b) that indi- by increased by $100,000. retary of Defense shall establish goals for cates the extent to which the Department (2) Of the amount authorized to be appro- the increased procurement by the Depart- has met the goal for the category of procure- priated by section 301(a)(1) for operation and ment of Defense of procurement items that ment items as of the end of such year. maintenance for the Army, as increased by are environmentally preferable or are made (g) DEFINITIONS.—In this section: paragraph (1), $100,000 shall be available to with recovered materials. (1) ENVIRONMENTALLY PREFERABLE.—The carry out the efforts authorized by sub- (2) The goals established under paragraph term ‘‘environmentally preferable’’, in the section (a). (1) shall be consistent with the requirements case of a procurement item, means that the

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.025 pfrm12 PsN: S08PT1 S6378 CONGRESSIONAL RECORD — SENATE July 8, 2002 item has a lesser or reduced effect on human (1) The term ‘‘educational agencies assist- thorization Act for Fiscal Year 2002 (Public health and the environment when compared ance’’ means assistance authorized under Law 107–107; 115 Stat. 1065). with competing procurement items that section 386(b) of the National Defense Au- (b) DEFINITION.—In this section, the term serve the same purpose. The comparison may thorization Act for Fiscal Year 1993 (Public ‘‘Navy-Marine Corps Intranet contract’’ has be based upon consideration of raw materials Law 102–484; 20 U.S.C. 7703 note). the meaning given such term in section acquisition, production, manufacturing, (2) The term ‘‘local educational agency’’ 814(i)(1) of the Floyd D. Spence National De- packaging, distribution, reuse, operation, has the meaning given that term in section fense Authorization Act for Fiscal Year 2001 maintenance, or disposal of the procurement 8013(9) of the Elementary and Secondary (as amended by section 362(c) of Public Law item, or other appropriate matters. Education Act of 1965 (20 U.S.C. 7713(9)). 107–107 (115 Stat. 1067)). (2) PROCUREMENT ITEM.—The term ‘‘pro- SEC. 332. IMPACT AID FOR CHILDREN WITH SE- SEC. 343. REIMBURSEMENT FOR RESERVE COM- curement item’’ has the meaning given that VERE DISABILITIES. PONENT INTELLIGENCE SUPPORT. term in section 1004(16) of the Solid Waste Of the amount authorized to be appro- (a) SOURCE OF FUNDS.—Chapter 1003 of title Disposal Act (40 U.S.C. 6903(16)). priated pursuant to section 301(a)(5) for oper- 10, United States Code, is amended by adding (3) RECOVERED MATERIALS.—The term ‘‘re- ation and maintenance for Defense-wide ac- at the end the following new section: covered materials’’ means waste materials tivities, $5,000,000 shall be available for pay- ‘‘§ 10115. Reimbursement for reserve compo- and by-products that have been recovered or ments under section 363 of the Floyd D. nent intelligence support diverted from solid waste, but does not in- Spence National Defense Authorization Act ‘‘(a) AUTHORITY.—Funds appropriated or clude materials and by-products generated for Fiscal Year 2001 (as enacted into law by otherwise made available to a military de- from, and commonly used within, an original Public Law 106–398; 114 Stat. 1654A–77; 20 partment, Defense Agency, or combatant manufacturing process. U.S.C. 7703a). command for operation and maintenance SEC. 314. CLEANUP OF UNEXPLODED ORDNANCE SEC. 333. OPTIONS FOR FUNDING DEPENDENT shall be available for the pay, allowances, ON KAHO’OLAWE ISLAND, HAWAII. SUMMER SCHOOL PROGRAMS. and other costs that would be charged to ap- (a) LEVEL OF CLEANUP REQUIRED.—The Sec- Section 1402(d)(2) of the Defense Depend- propriations for a reserve component for the retary of the Navy shall continue activities ents’ Education Act of 1978 (20 U.S.C. performance of duties by members of that re- for the clearance and removal of unexploded 921(d)(2)) is amended to read as follows: serve component in providing intelligence or ordnance on the Island of Kaho’olawe, Ha- ‘‘(2) The Secretary shall provide any sum- counterintelligence support to— waii, and related remediation activities, mer school program under this subsection on ‘‘(1) such military department, Defense until the later of the following dates: the same financial basis as programs offered Agency, or combatant command; or (1) The date on which the Kaho’olawe Is- during the regular school year, except that ‘‘(2) a joint intelligence activity, including land access control period expires. the Secretary may charge reasonable fees for any such activity for which funds are au- (2) The date on which the Secretary all or portions of such summer school pro- thorized to be appropriated within the Na- achieves each of the following objectives: grams to the extent that the Secretary de- tional Foreign Intelligence Program, the (A) The inspection and assessment of all of termines appropriate.’’. Joint Military Intelligence Program, or the Kaho’olawe Island in accordance with cur- SEC. 334. COMPTROLLER GENERAL STUDY OF Tactical Intelligence and Related Activities rent procedures. ADEQUACY OF COMPENSATION PRO- aggregate (or any successor to such program (B) The clearance of 75 percent of VIDED FOR TEACHERS IN THE DE- or aggregate). Kaho’olawe Island to the degree specified in PARTMENT OF DEFENSE OVERSEAS ‘‘(b) CONSTRUCTION OF PROVISION.—Nothing DEPENDENTS’ SCHOOLS. the Tier One standards in the memorandum in this section shall be construed to author- (a) ADDITIONAL CONSIDERATION FOR of understanding. ize deviation from established reserve com- STUDY.—Subsection (b) of section 354 of the (C) The clearance of 25 percent of ponent personnel or training procedures.’’. National Defense Authorization Act for Fis- Kaho’olawe Island to the degree specified in (b) CLERICAL AMENDMENT.—The table of cal Year 2002 (Public Law 107–107; 115 Stat. the Tier Two standards in the memorandum sections at the beginning of such chapter is 1064) is amended by inserting after paragraph of understanding. amended by adding at the end the following (2) the following new paragraph: (b) DEFINITIONS.—In this section: new item: ‘‘(3) Whether the process for setting teach- (1) The term ‘‘Kaho’olawe Island access ‘‘10115. Reimbursement for reserve compo- er compensation is efficient and cost effec- control period’’ means the period for which nent intelligence support.’’. tive.’’. the Secretary of the Navy is authorized to SEC. 344. REBATE AGREEMENTS UNDER THE SPE- (b) EXTENSION OF TIME FOR REPORTING.— CIAL SUPPLEMENTAL FOOD PRO- retain the control of access to the Island of Subsection (c) of such section is amended by Kaho’olawe, Hawaii, under title X of the De- GRAM. striking ‘‘May 1, 2002’’ and inserting ‘‘De- (a) APPLICABILITY TO NAVY EXCHANGE MAR- partment of Defense Appropriations Act, 1994 cember 12, 2002’’. (Public Law 103–139; 107 Stat. 1480). KETS.—Paragraph (1)(A) of section 1060a(e) of (2) The term ‘‘memorandum of under- Subtitle D—Other Matters title 10, United States Code, is amended by standing’’ means the Memorandum of Under- SEC. 341. USE OF HUMANITARIAN AND CIVIC AS- inserting ‘‘or Navy Exchange Markets’’ after standing Between the United States Depart- SISTANCE FUNDS FOR RESERVE ‘‘commissary stores’’. (b) INCREASED MAXIMUM PERIOD OF AGREE- ment of the Navy and the State of Hawaii COMPONENT MEMBERS OF SPECIAL OPERATIONS COMMAND ENGAGED MENT.—Paragraph (3) of such section 1060a(e) Concerning the Island of Kaho’olawe, Ha- IN ACTIVITIES RELATING TO CLEAR- is amended by striking ‘‘subsection may not waii. ANCE OF LANDMINES. exceed one year’’ in the first sentence and in- Subtitle C—Defense Dependents’ Education Section 401(c) of title 10, United States serting ‘‘subsection, including any period of SEC. 331. ASSISTANCE TO LOCAL EDUCATIONAL Code, is amended by adding at the end the extension of the contract by modification of AGENCIES THAT BENEFIT DEPEND- following new paragraph (5): the contract, exercise of an option, or other ENTS OF MEMBERS OF THE ARMED ‘‘(5) Up to 10 percent of the amount avail- cause, may not exceed three years’’. FORCES AND DEPARTMENT OF DE- able for a fiscal year for activities described SEC. 345. LOGISTICS SUPPORT AND SERVICES FENSE CIVILIAN EMPLOYEES. in subsection (e)(5) may be expended for the FOR WEAPON SYSTEMS CONTRAC- (a) CONTINUATION OF DEPARTMENT OF DE- pay and allowances of reserve component TORS. FENSE PROGRAM FOR FISCAL YEAR 2003.—Of members of the Special Operations Com- (a) AUTHORITY.—The Secretary of Defense the amount authorized to be appropriated mand performing duty in connection with may make available, in accordance with this pursuant to section 301(a)(5) for operation training and activities related to the clear- section and the regulations prescribed under and maintenance for Defense-wide activities, ing of landmines for humanitarian pur- subsection (e), logistics support and logistics $30,000,000 shall be available only for the purposes.’’. services to a contractor in support of the pose of providing educational agencies as- SEC. 342. CALCULATION OF FIVE-YEAR PERIOD performance by the contractor of a contract sistance to local educational agencies. OF LIMITATION FOR NAVY-MARINE for the construction, modification, or main- (b) NOTIFICATION.—Not later than June 30, CORPS INTRANET CONTRACT. tenance of a weapon system that is entered 2003, the Secretary of Defense shall notify (a) COMMENCEMENT OF PERIOD.—The five- into by an official of the Department of De- each local educational agency that is eligible year period of limitation that is applicable fense. for assistance or a payment under subsection to the multiyear Navy-Marine Corps (b) SUPPORT CONTRACTS.—Any logistics (a) for fiscal year 2003 of— Intranet contract under section 2306c of title support and logistics services that is to be (1) that agency’s eligibility for the assist- 10, United States Code, shall be deemed to provided under this section to a contractor ance or payment; and have begun on the date on which the Under in support of the performance of a contract (2) the amount of the assistance or pay- Secretary of Defense for Acquisition, Tech- shall be provided under a separate contract ment for which that agency is eligible. nology, and Logistics and the Chief Informa- that is entered into by the Director of the (c) DISBURSEMENT OF FUNDS.—The Sec- tion Officer of the Department of Defense ap- Defense Logistics Agency with that con- retary of Defense shall disburse funds made proved the ordering of additional tractor. available under subsection (a) not later than workstations under such contract in accord- (c) SCOPE OF SUPPORT AND SERVICES.—The 30 days after the date on which notification ance with subsection (c) of section 814 of the logistics support and logistics services that to the eligible local educational agencies is Floyd D. Spence National Defense Authoriza- may be provided under this section in sup- provided pursuant to subsection (b). tion Act for Fiscal Year 2001, as added by port of the performance of a contract de- (d) DEFINITIONS.—In this section: section 362(a) of the National Defense Au- scribed in subsection (a) are the distribution,

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6379

disposal, and cataloging of materiel and re- (g) TERMINATION OF AUTHORITY.—(1) The (B) interim authority for the installation pair parts necessary for the performance of authority provided in this section shall ex- and connection of telecom switches to the that contract. pire on September 30, 2007, subject to para- Defense Switch Network may be granted. (d) LIMITATIONS.—(1) The number of con- graph (2). (2) Only the Assistant Secretary of Defense tracts described in subsection (a) for which (2) The expiration of the authority under for Command, Control, Communications, and the Secretary makes logistics support and this section does not terminate— Intelligence, after consultation with the logistics services available under the author- (A) any contract that was entered into by Chairman of the Joint Chiefs of Staff, may ity of this section may not exceed five con- the Director of the Defense Logistics Agency approve a waiver or grant of interim author- tracts. The total amount of the estimated under subsection (b) before the expiration of ity under paragraph (1). costs of all such contracts for which logistics the authority or any obligation to provide (d) INVENTORY OF DEFENSE SWITCH NET- support and logistics services are made logistics support and logistics services under WORK.—The Secretary of Defense shall pre- available under this section may not exceed that contract; or pare and maintain an inventory of all $100,000,000. (B) any authority— telecom switches that, as of the date on (2) No contract entered into by the Direc- (i) to enter into a contract described in which the Secretary issues the policy and tor of the Defense Logistics Agency under subsection (a) for which a solicitation of of- procedures— subsection (b) may be for a period in excess fers was issued in accordance with the regu- (1) are installed or connected to the De- of five years, including periods for which the lations prescribed pursuant to subsection fense Switch Network; but contract is extended under options to extend (e)(2) before the date of the expiration of the (2) have not been tested, validated, and cer- the contract. authority; or tified by the Defense Information Systems (e) REGULATIONS.—Before exercising the Agency (Joint Interoperability Test Center). authority under this section, the Secretary (ii) to provide logistics support and logistics services to the contractor with respect (e) INTEROPERABILITY RISKS.—(1) The Sec- of Defense shall prescribe in regulations such retary of Defense shall, on an ongoing requirements, conditions, and restrictions as to that contract in accordance with this section. basis— the Secretary determines appropriate to en- (A) identify and assess the interoperability sure that logistics support and logistics serv- SEC. 346. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE. risks that are associated with the installa- ices are provided under this section only tion or connection of uncertified switches to (a) EXTENSION THROUGH FISCAL YEAR when it is in the best interests of the United the Defense Switch Network and the mainte- 2004.—Subsection (a) of section 343 of the States to do so. The regulations shall in- nance of such switches on the Defense Floyd D. Spence National Defense Authoriza- clude, at a minimum, the following: Switch Network; and tion Act for Fiscal Year 2001 (as enacted into (1) A requirement for the authority under (B) develop and implement a plan to elimi- law by Public Law 106–398; 114 Stat. 1654A–65) this section to be used only for providing lo- nate or mitigate such risks as identified. is amended by striking ‘‘and 2002’’ and in- gistics support and logistics services in sup- (2) The Secretary shall initiate action serting ‘‘through 2004’’. port of the performance of a contract that is under paragraph (1) upon completing the ini- entered into using competitive procedures (b) REPORTING REQUIREMENTS.—Subsection tial inventory of telecom switches required (as defined in section 4 of the Office of Fed- (g) of such section is amended— by subsection (d). eral Procurement Policy Act (41 U.S.C. 403)). (1) in paragraph (1), by striking ‘‘2002’’ and (f) TELECOM SWITCH DEFINED.—In this sec- (2) A requirement for the solicitation of of- inserting ‘‘2004’’; and tion, the term ‘‘telecom switch’’ means hard- fers for a contract described in subsection (2) in paragraph (2), by striking the first ware or software designed to send and re- (a), for which logistics support and logistics sentence and inserting the following new ceive voice, data, or video signals across a services are to be made available under this sentence: ‘‘Not later than July 1, 2003, the network that provides customer voice, data, section, to include— Secretary of the Army shall submit to the or video equipment access to the Defense (A) a statement that the logistics support congressional defense committees a report Switch Network or public switched tele- and logistics services are to be made avail- on the results of the demonstration program communications networks. able under the authority of this section to since its implementation, including the Sec- SEC. 349. ENGINEERING STUDY AND ENVIRON- any contractor awarded the contract, but retary’s views regarding the benefits of the MENTAL ANALYSIS OF ROAD MODI- only on a basis that does not require accept- program for Army manufacturing arsenals FICATIONS IN VICINITY OF FORT ance of the support and services; and and the Department of the Army and the BELVOIR, VIRGINIA. (B) a description of the range of the logis- success of the program in achieving the pur- (a) STUDY AND ANALYSIS.—(1) The Sec- tics support and logistics services that are to poses specified in subsection (b).’’. retary of the Army shall conduct a prelimi- be made available to the contractor. SEC. 347. TWO-YEAR EXTENSION OF AUTHORITY nary engineering study and environmental (3) A requirement for the rates charged a OF THE SECRETARY OF DEFENSE TO analysis to evaluate the feasibility of estab- contractor for logistics support and logistics ENGAGE IN COMMERCIAL ACTIVI- lishing a connector road between Richmond services provided to a contractor under this TIES AS SECURITY FOR INTEL- Highway (United States Route 1) and Tele- section to reflect the full cost to the United LIGENCE COLLECTION ACTIVITIES graph Road in order to provide an alter- ABROAD. States of the resources used in providing the native to Beulah Road (State Route 613) and support and services, including the costs of Section 431(a) of title 10, United States Woodlawn Road (State Route 618) at Fort resources used, but not paid for, by the De- Code, is amended by striking ‘‘December 31, Belvoir, Virginia, which were closed as a partment of Defense. 2002’’ in the second sentence and inserting force protection measure. (4) A requirement to credit to the General ‘‘December 31, 2004’’. (2) It is the sense of Congress that the Fund of the Treasury amounts received by SEC. 348. INSTALLATION AND CONNECTION POL- study and analysis should consider as one al- the Department of Defense from a contractor ICY AND PROCEDURES REGARDING ternative the extension of Old Mill Road be- for the cost of logistics support and logistics DEFENSE SWITCH NETWORK. tween Richmond Highway and Telegraph services provided to the contractor by the (a) ESTABLISHMENT OF POLICY AND PROCE- Road. Department of Defense under this section DURES.—Not later than 180 days after the (b) CONSULTATION.—The study required by but not paid for out of funds available to the date of the enactment of this Act, the Sec- subsection (a) shall be conducted in con- Department of Defense. retary of Defense shall establish clear and sultation with the Department of Transpor- (5) With respect to a contract described in uniform policy and procedures, applicable to tation of the Commonwealth of Virginia and subsection (a) that is being performed for a the military departments and Defense Agen- Fairfax County, Virginia. department or agency outside the Depart- cies, regarding the installation and connec- (c) REPORT.—The Secretary shall submit to ment of Defense, a prohibition, in accord- tion of telecom switches to the Defense Congress a summary report on the study and ance with applicable contracting procedures, Switch Network. analysis required by subsection (a). The sum- on the imposition of any charge on that de- (b) ELEMENTS OF POLICY AND PROCE- mary report shall be submitted together partment or agency for any effort of Depart- DURES.—The policy and procedures shall ad- with the budget justification materials in ment of Defense personnel or the contractor dress at a minimum the following: support of the budget of the President for fis- to correct deficiencies in the performance of (1) Clear interoperability and compat- cal year 2006 that is submitted to Congress such contract. ibility requirements for procuring, certi- under section 1105(a) of title 31, United (6) A prohibition on the imposition of any fying, installing, and connecting telecom States Code. charge on a contractor for any effort of the switches to the Defense Switch Network. (d) FUNDING.—Of the amount authorized to contractor to correct a deficiency in the per- (2) Current, complete, and enforceable test- be appropriated by section 301(a)(1) for the formance of logistics support and logistics ing, validation, and certification procedures Army for operation and maintenance, services provided to the contractor under needed to ensure the interoperability and $5,000,000 may be available for the study and this section. compatibility requirements are satisfied. analysis required by subsection (a). (f) RELATIONSHIP TO TREATY OBLIGATIONS.— (c) EXCEPTIONS.—(1) The Secretary of De- SEC. 350. EXTENSION OF WORK SAFETY DEM- The Secretary shall ensure that the exercise fense may specify certain circumstances in ONSTRATION PROGRAM. of authority under this section does not con- which— Section 1112 of the Floyd D. Spence Na- flict with any obligation of the United (A) the requirements for testing, valida- tional Defense Authorization Act for Fiscal States under any treaty or other inter- tion, and certification of telecom switches Year 2001 (as enacted into law by Public Law national agreement. may be waived; or 106–398; 114 Stat. 1654A–313) is amended—

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 S6380 CONGRESSIONAL RECORD — SENATE July 8, 2002 (1) in subsection (d), by striking ‘‘Sep- (1) in subsection (a), by striking ‘‘sub- the Selected Reserve of such component who tember 30, 2002’’ and inserting ‘‘September section (c)’’ in paragraphs (1) and (2) and in- are on active duty (other than for training or 30, 2003’’; and serting ‘‘subsections (c) and (e)’’; and for unsatisfactory participation in training) (2) in subsection (e)(2), by striking ‘‘De- (2) by adding at the end the following new without their consent at the end of the fiscal cember 1, 2002’’ and inserting ‘‘December 1, subsection: year. 2003’’. ‘‘(e) The Secretary of Defense may increase Whenever such units or such individual SEC. 351. LIFT SUPPORT FOR MINE WARFARE the authorized total number of commis- SHIPS AND OTHER VESSELS. sioned officers serving on active duty in the members are released from active duty dur- (a) AMOUNT.—Of the amount authorized to Army, Navy, Air Force, or Marine Corps in a ing any fiscal year, the end strength pre- be appropriated by section 302(2), $10,000,000 grade referred to in subsection (c) at the end scribed for such fiscal year for the Selected shall be available for implementing the rec- of any fiscal year under that subsection by Reserve of such reserve component shall be ommendations resulting from the Navy’s the number of commissioned officers of re- proportionately increased by the total au- Non-Self Deployable Watercraft (NDSW) serve components of the Army, Navy, Air thorized strengths of such units and by the Study and the Joint Chiefs of Staff Focused Force, or Marine Corps, respectively, that total number of such individual members. Logistics Study, which are to determine the are then serving on active duty in that grade requirements of the Navy for providing lift under section 12301(d) of this title in support SEC. 412. END STRENGTHS FOR RESERVES ON AC- TIVE DUTY IN SUPPORT OF THE RE- support for mine warfare ships and other ves- of a contingency operation.’’. SERVES. sels. (d) AUTHORIZED STRENGTHS FOR GENERAL (b) OFFSETTING REDUCTION.—Of the amount AND FLAG OFFICERS ON ACTIVE DUTY.—Sec- Within the end strengths prescribed in sec- authorized to be appropriated by section tion 526(a) of such title is amended— tion 411(a), the reserve components of the 302(2), the amount provided for the procure- (1) by redesignating paragraphs (1), (2), (3), Armed Forces are authorized, as of Sep- ment of mine countermeasures ships cradles and (4) as subparagraphs (A), (B), (C), and tember 30, 2003, the following number of Re- is hereby reduced by $10,000,000. (D), respectively; serves to be serving on full-time active duty SEC. 352. NAVY DATA CONVERSION ACTIVITIES. (2) by striking ‘‘LIMITATIONS.—The’’ and in- or full-time duty, in the case of members of (a) AMOUNT FOR ACTIVITIES.—The amount serting ‘‘LIMITATIONS.—(1) Except as pro- the National Guard, for the purpose of orga- authorized to be appropriated by section vided in paragraph (2), the’’; and nizing, administering, recruiting, instruct- 301(a)(2) is hereby increased by $1,500,000. The (3) by adding at the end the following new ing, or training the reserve components: total amount of such increase may be avail- paragraph (2): (1) The Army National Guard of the United able for the Navy Data Conversion and Man- ‘‘(2) The Secretary of Defense may increase States, 24,492. agement Laboratory to support data conver- the number of general and flag officers au- (2) The Army Reserve, 13,888. sion activities for the Navy. thorized to be on active duty in the Army, (3) The Naval Reserve, 14,572. (b) OFFSET.—The amount authorized to be Navy, Air Force, or Marine Corps under (4) The Marine Corps Reserve, 2,261. appropriated by section 301(a)(1) is hereby re- paragraph (1) by the number of reserve gen- (5) The Air National Guard of the United duced by $1,500,000 to reflect a reduction in eral or flag officers of reserve components of States, 11,727. the utilities privatization efforts previously the Army, Navy, Air Force, or Marine Corps, (6) The Air Force Reserve, 1,498. planned by the Army. respectively, that are on active duty under TITLE IV—MILITARY PERSONNEL section 12301(d) of this title in support of a SEC. 413. END STRENGTHS FOR MILITARY TECH- NICIANS (DUAL STATUS). AUTHORIZATIONS contingency operation.’’. Subtitle A—Active Forces SEC. 403. INCREASED ALLOWANCE FOR NUMBER The minimum number of military techni- OF MARINE CORPS GENERAL OFFI- SEC. 401. END STRENGTHS FOR ACTIVE FORCES. cians (dual status) as of the last day of fiscal CERS ON ACTIVE DUTY IN GRADES year 2003 for the reserve components of the The Armed Forces are authorized ABOVE MAJOR GENERAL. strengths for active duty personnel as of Army and the Air Force (notwithstanding Section 525(b)(2)(B) of title 10, United section 129 of title 10, United States Code) September 30, 2003, as follows: States Code, is amended by striking ‘‘16.2 shall be the following: (1) The Army, 485,000. percent’’ and inserting ‘‘17.5 percent’’. (2) The Navy, 379,200. (1) For the Army Reserve, 6,599. SEC. 404. INCREASE IN AUTHORIZED STRENGTHS (2) For the Army National Guard of the (3) The Marine Corps, 175,000. FOR MARINE CORPS OFFICERS ON (4) The Air Force, 362,500. ACTIVE DUTY IN THE GRADE OF United States, 24,102. SEC. 402. AUTHORITY TO INCREASE STRENGTH COLONEL. (3) For the Air Force Reserve, 9,911. AND GRADE LIMITATIONS TO AC- The table in section 523(a)(1) of title 10, (4) For the Air National Guard of the COUNT FOR RESERVE COMPONENT United States Code, is amended by striking United States, 22,495. MEMBERS ON ACTIVE DUTY IN SUP- the figures under the heading ‘‘Colonel’’ in PORT OF A CONTINGENCY OPER- SEC. 414. FISCAL YEAR 2003 LIMITATIONS ON ATION. the portion of the table relating to the Ma- NON-DUAL STATUS TECHNICIANS. rine Corps and inserting the following: (a) ACTIVE DUTY STRENGTH.—Section (a) LIMITATIONS.—(1) Within the limitation 115(c)(1) of title 10, United States Code, is ‘‘571 632 provided in section 10217(c)(2) of title 10, amended to read as follows: United States Code, the number of non-dual ‘‘(1) increase the end strength authorized 653 673 status technicians employed by the National pursuant to subsection (a)(1)(A) for a fiscal Guard as of September 30, 2003, may not ex- year for any of the armed forces by— 694 715 ceed the following: ‘‘(A) a number equal to not more than 2 735’’. (A) For the Army National Guard of the percent of that end strength; United States, 1,600. ‘‘(B) a number equal to the number of Subtitle B—Reserve Forces (B) For the Air National Guard of the members of the reserve components of that SEC. 411. END STRENGTHS FOR SELECTED RE- United States, 350. armed force on active duty under section SERVE. 12301(d) of this title in support of a contin- (a) IN GENERAL.—The Armed Forces are au- (2) The number of non-dual status techni- gency operation in that fiscal year; or thorized strengths for Selected Reserve per- cians employed by the Army Reserve as of ‘‘(C) a number not greater than the sum of sonnel of the reserve components as of Sep- September 30, 2003, may not exceed 995. tember 30, 2003, as follows: the numbers authorized by subparagraphs (3) The Air Force Reserve may not employ (1) The Army National Guard of the United (A) and (B).’’. any person as a non-dual status technician (b) AUTHORIZED DAILY AVERAGE FOR MEM- States, 350,000. during fiscal year 2003. BERS IN PAY GRADES E–8 AND E–9 ON ACTIVE (2) The Army Reserve, 205,000. DUTY.—Section 517 of such title is amended (3) The Naval Reserve, 87,800. (b) NON-DUAL STATUS TECHNICIANS DE- by adding at the end the following new para- (4) The Marine Corps Reserve, 39,558. FINED.—In this section, the term ‘‘non-dual graph: (5) The Air National Guard of the United status technician’’ has the meaning given ‘‘(d) The Secretary of Defense may increase States, 106,600. the term in section 10217(a) of title 10, United the authorized daily average number of en- (6) The Air Force Reserve, 75,600. States Code. listed members on active duty in an armed (7) The Coast Guard Reserve, 9,000. force in pay grades E–8 and E–9 in a fiscal (b) ADJUSTMENTS.—The end strengths pre- Subtitle C—Authorization of Appropriations scribed by subsection (a) for the Selected Re- year under subsection (a) by the number of SEC. 421. AUTHORIZATION OF APPROPRIATIONS enlisted members of reserve components of serve of any reserve component shall be pro- FOR MILITARY PERSONNEL. that armed force in pay grades E–8 and E–9, portionately reduced by— respectively, that are on active duty in that (1) the total authorized strength of units There is hereby authorized to be appro- fiscal year under section 12301(d) of this title organized to serve as units of the Selected priated to the Department of Defense for in support of a contingency operation.’’. Reserve of such component which are on ac- military personnel for fiscal year 2003 a total (c) AUTHORIZED STRENGTHS FOR COMMIS- tive duty (other than for training) at the end of $94,352,208,000. The authorization in the SIONED OFFICERS IN PAY GRADES O–4, O–5, of the fiscal year; and preceding sentence supersedes any other au- AND O–6 ON ACTIVE DUTY.—Section 523 of (2) the total number of individual members thorization of appropriations (definite or in- such title is amended— not in units organized to serve as units of definite) for such purpose for fiscal year 2003.

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6381 TITLE V—MILITARY PERSONNEL POLICY SEC. 506. REINSTATEMENT OF AUTHORITY TO RE- ‘‘(3) The notification requirement under DUCE SERVICE REQUIREMENT FOR Subtitle A—Officer Personnel Policy paragraph (1) does not apply to an officer RETIREMENT IN GRADES ABOVE O–4. being retired in the grade of lieutenant colo- SEC. 501. EXTENSION OF CERTAIN REQUIRE- (a) OFFICERS ON ACTIVE DUTY.—Subsection nel or colonel or, in the case of the Navy, MENTS AND EXCLUSIONS APPLICA- (a)(2)(A) of section 1370 of title 10, United commander or captain.’’. BLE TO SERVICE OF GENERAL AND States Code, is amended— FLAG OFFICERS ON ACTIVE DUTY IN (1) by striking ‘‘may authorize’’ and all Subtitle B—Reserve Component Personnel CERTAIN JOINT DUTY ASSIGN- that follows and inserting ‘‘may, in the case Policy MENTS. of retirements effective during the period be- SEC. 511. TIME FOR COMMENCEMENT OF INITIAL (a) RECOMMENDATIONS FOR ASSIGNMENT TO ginning on September 1, 2002, and ending on PERIOD OF ACTIVE DUTY FOR SENIOR JOINT OFFICER POSITIONS.—Section December 31, 2004, authorize—’’; and TRAINING UPON ENLISTMENT IN RE- 604(c) of title 10, United States Code, is (2) by adding at the end the following: SERVE COMPONENT. amended by striking ‘‘September 30, 2003’’ ‘‘(1) the Deputy Under Secretary of Defense Section 12103(d) of title 10, United States and inserting ‘‘December 31, 2003’’. for Personnel and Readiness to reduce such Code, is amended by striking ‘‘270 days’’ in (b) INAPPLICABILITY OF GRADE DISTRIBUTION 3-year period of required service to a period the second sentence and inserting ‘‘one REQUIREMENTS.—Section 525(b)(5)(C) of such not less than two years for retirements in year’’. title is amended by striking ‘‘September 30, grades above colonel or, in the case of the SEC. 512. AUTHORITY FOR LIMITED EXTENSION 2003’’ and inserting ‘‘December 31, 2003’’. Navy, captain; and OF MEDICAL DEFERMENT OF MAN- ‘‘(2) the Secretary of a military depart- DATORY RETIREMENT OR SEPARA- (c) EXCLUSION FROM STRENGTH LIMITA- TION OF RESERVE COMPONENT OF- TION.—Section 526(b)(3) of such title is ment or the Assistant Secretary of a mili- FICER. amended by striking ‘‘October 1, 2002’’ and tary department having responsibility for (a) AUTHORITY.—Chapter 1407 of title 10, inserting ‘‘December 31, 2003’’. manpower and reserve affairs to reduce such United States Code, is amended by adding at 3-year period to a period of required service SEC. 502. EXTENSION OF AUTHORITY TO WAIVE the end the following new section: not less than two years for retirements in REQUIREMENT FOR SIGNIFICANT ‘‘§ 14519. Deferment of retirement or separa- JOINT DUTY EXPERIENCE FOR AP- grades of lieutenant colonel and colonel or, POINTMENT AS A CHIEF OF A RE- in the case of the Navy, commander and cap- tion for medical reasons SERVE COMPONENT OR A NATIONAL tain.’’. ‘‘(a) AUTHORITY.—If, in the case of an offi- GUARD DIRECTOR. (b) RESERVE OFFICERS.—Subsection (d)(5) cer required to be retired or separated under (a) CHIEF OF ARMY RESERVE.—Section of such section is amended— this chapter or chapter 1409 of this title, the 3038(b)(4) of title 10, United States Code, is (1) in the first sentence— Secretary concerned determines that the amended by striking ‘‘October 1, 2003’’ and (A) by striking ‘‘may authorize’’ and all evaluation of the physical condition of the inserting ‘‘December 31, 2003’’. that follows and inserting ‘‘may, in the case officer and determination of the officer’s en- (b) CHIEF OF NAVAL RESERVE.—Section of retirements effective during the period be- titlement to retirement or separation for 5143(b)(4) of such title is amended by striking ginning on September 1, 2002, and ending on physical disability require hospitalization or ‘‘October 1, 2003’’ and inserting ‘‘December December 31, 2004, authorize—’’; and medical observation and that such hos- 31, 2003’’. (B) by adding at the end the following: pitalization or medical observation cannot ‘‘(A) the Deputy Under Secretary of De- be completed with confidence in a manner (c) COMMANDER, MARINE FORCES RE- fense for Personnel and Readiness to reduce consistent with the officer’s well being be- SERVE.—Section 5144(b)(4) of such title is such 3-year period of required service to a pe- amended by striking ‘‘October 1, 2003’’ and fore the date on which the officer would oth- riod not less than two years for retirements inserting ‘‘December 31, 2003’’. erwise be required to retire or be separated, in grades above colonel or, in the case of the the Secretary may defer the retirement or (d) CHIEF OF AIR FORCE RESERVE.—Section Navy, captain; and separation of the officer. 8038(b)(4) of such title 10, United States Code, ‘‘(B) the Secretary of a military depart- ‘‘(b) PERIOD OF DEFERMENT.—A deferral of is amended by striking ‘‘October 1, 2003’’ and ment or the Assistant Secretary of a mili- retirement or separation under subsection inserting ‘‘December 31, 2003’’. tary department having responsibility for (a) may not extend for more than 30 days (e) DIRECTORS OF THE NATIONAL GUARD.— manpower and reserve affairs to reduce such after the completion of the evaluation re- Section 10506(a)(3)(D) of such title is amend- 3-year period of required service to a period quiring hospitalization or medical observa- ed by striking ‘‘October 1, 2003’’ and insert- not less than two years for retirements in tion.’’. ing ‘‘December 31, 2003’’. grades of lieutenant colonel and colonel or, (b) CLERICAL AMENDMENT.—The table of SEC. 503. REPEAL OF LIMITATION ON AUTHORITY in the case of the Navy, commander and cap- sections at the beginning of such chapter is TO GRANT CERTAIN OFFICERS A tain.’’; amended by adding at the end the following WAIVER OF REQUIRED SEQUENCE (2) by designating the second sentence as new item: FOR JOINT PROFESSIONAL MILI- paragraph (6) and realigning such paragraph, ‘‘14519. Deferment of retirement or separa- TARY EDUCATION AND JOINT DUTY as so redesignated 2 ems from the left mar- ASSIGNMENT. tion for medical reasons.’’. gin; and Section 661(c)(3)(D) of title 10, United SEC. 513. REPEAL OF PROHIBITION ON USE OF (3) in paragraph (6), as so redesignated, by AIR FORCE RESERVE AGR PER- States Code, is amended by striking ‘‘In the striking ‘‘this paragraph’’ and inserting case of officers in grades below brigadier SONNEL FOR AIR FORCE BASE SECU- ‘‘paragraph (5)’’. RITY FUNCTIONS. general’’ and all that follows through ‘‘se- (c) ADVANCE NOTICE TO THE PRESIDENT AND (a) REPEAL.—Section 12551 of title 10, lected for the joint specialty during that fis- CONGRESS.—Such section is further amended United States Code, is repealed. cal year.’’. by adding at the end the following new sub- (b) CLERICAL AMENDMENT.—The table of SEC. 504. EXTENSION OF TEMPORARY AUTHOR- section: sections at the beginning of chapter 1215 of ITY FOR RECALL OF RETIRED AVI- ‘‘(e) ADVANCE NOTICE TO CONGRESS.—(1) such title is amended by striking the item The Secretary of Defense shall notify the ATORS. relating to section 12551. Section 501(e) of the National Defense Au- Committees on Armed Services of the Senate Subtitle C—Education and Training thorization Act for Fiscal Year 2000 (Public and House of Representatives of— Law 106–65; 113 Stat. 589) is amended by ‘‘(A) an exercise of authority under para- SEC. 521. INCREASE IN AUTHORIZED STRENGTHS striking ‘‘September 30, 2002’’ and inserting graph (2)(A) of subsection (a) to reduce the 3- FOR THE SERVICE ACADEMIES. ‘‘September 30, 2008’’. year minimum period of required service on (a) UNITED STATES MILITARY ACADEMY.— active duty in a grade in the case of an offi- Section 4342 of title 10, United States Code, SEC. 505. INCREASED GRADE FOR HEADS OF cer to whom such paragraph applies before is amended— NURSE CORPS. the officer is retired in such grade under (1) in subsection (a), by striking ‘‘4,000’’ in (a) ARMY.—Section 3069(b) of title 10, such subsection without having satisfied the first sentence and inserting ‘‘4,400’’; and United States Code, is amended by striking that 3-year service requirement; and (2) in subsection (i), by striking ‘‘variance ‘‘brigadier general’’ in the second sentence ‘‘(B) an exercise of authority under para- in that limitation’’ and inserting ‘‘variance and inserting ‘‘major general’’. graph (5) of subsection (d) to reduce the 3- above that limitation’’. (b) NAVY.—The first sentence of section year minimum period of service in grade re- (b) UNITED STATES NAVAL ACADEMY.—Sec- 5150(c) of such title is amended— quired under paragraph (3)(A) of such sub- tion 6954 of title 10, United States Code, is (1) by inserting ‘‘rear admiral (upper half) section in the case of an officer to whom amended— in the case of an officer in the Nurse Corps such paragraph applies before the officer is (1) in subsection (a), by striking ‘‘4,000’’ in or’’ after ‘‘for promotion to the grade of’’; credited with satisfactory service in such the first sentence and inserting ‘‘4,400’; and and grade under subsection (d) without having (2) in subsection (g), by striking ‘‘variance (2) by inserting ‘‘in the case of an officer in satisfied that 3-year service requirement. in that limitation’’ and inserting ‘‘variance the Medical Service Corps’’ after ‘‘rear admi- ‘‘(2) The requirement for a notification above that limitation’’. ral (lower half)’’. under paragraph (1) is satisfied in the case of (c) UNITED STATES AIR FORCE ACADEMY.— (c) AIR FORCE.—Section 8069(b) of such title an officer to whom subsection (c) applies if Section 9342 of title 10, United States Code, is amended by striking ‘‘brigadier general’’ the notification is included in the certifi- is amended— in the second sentence and inserting ‘‘major cation submitted with respect to such officer (1) in subsection (a), by striking ‘‘4,000’’ in general’’. under paragraph (1) of such subsection. the first sentence and inserting ‘‘4,400’’; and

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 S6382 CONGRESSIONAL RECORD — SENATE July 8, 2002 (2) in subsection (i), by striking ‘‘variance July 28, 1954, and ending on such date after steps to provide in a timely manner for the in that limitation’’ and inserting ‘‘variance the date of the enactment of this section as issuance of the Korea Defense Service Medal, above that limitation’’. may be determined by the Secretary of De- upon application therefor, to persons whose Subtitle D—Decorations, Awards, and fense to be appropriate for terminating eligi- eligibility for that medal is by reason of Commendations bility for the Korea Defense Service Medal. service in the Republic of Korea or the waters adjacent thereto before the date of the SEC. 531. WAIVER OF TIME LIMITATIONS FOR ‘‘(c) The Secretary of the Army shall pre- AWARD OF CERTAIN DECORATIONS scribe service requirements for eligibility for enactment of this Act. TO CERTAIN PERSONS. the Korea Defense Service Medal. Those re- Subtitle E—National Call to Service (a) WAIVER.—Any limitation established by quirements shall not be more stringent than SEC. 541. ENLISTMENT INCENTIVES FOR PUR- law or policy for the time within which a the service requirements for award of the SUIT OF SKILLS TO FACILITATE NA- recommendation for the award of a military Armed Forces Expeditionary Medal for in- TIONAL SERVICE. decoration or award must be submitted shall stances in which the award of that medal is (a) AUTHORITY.—(1) Chapter 5 of title 37, not apply to awards of decorations described authorized.’’. United States Code, is amended by adding at in this section, the award of each such deco- (2) The table of sections at the beginning of the end the following new section: ration having been determined by the Sec- such chapter is amended by adding at the ‘‘§ 326. Enlistment incentives for pursuit of retary concerned to be warranted in accord- end the following new item: skills to facilitate national service ance with section 1130 of title 10, United ‘‘3755. Korea Defense Service Medal.’’. ‘‘(a) INCENTIVES AUTHORIZED.—The Sec- States Code. (c) NAVY AND MARINE CORPS.—(1) Chapter retary of Defense may carry out a program (b) DISTINGUISHED-SERVICE CROSS OF THE 567 of title 10, United States Code, is amend- in accordance with the provisions of this sec- ARMY.—Subsection (a) applies to the award ed by adding at the end the following new tion under which program a National Call to of the Distinguished-Service Cross of the section: Service participant described in subsection Army as follows: (b) shall be entitled to an incentive specified (1) To Henry Johnson of Albany, New York, ‘‘§ 6257. Korea Defense Service Medal in subsection (d). for extraordinary heroism in France during ‘‘(a) The Secretary of the Navy shall issue ‘‘(b) NATIONAL CALL TO SERVICE PARTICI- the period of May 13 to 15, 1918, while serving a campaign medal, to be known as the Korea PANT.—In this section, the term ‘National as a member of the Army. Defense Service Medal, to each person who Call to Service participant’ means a person (2) To Hilliard Carter of Jackson, Mis- while a member of the Navy or Marine Corps who first enlists in the armed forces pursu- sissippi, for extraordinary heroism in actions served in the Republic of Korea or the waters ant to a written agreement (prescribed by near Troung Loung, Republic of Vietnam, on adjacent thereto during the KDSM eligi- the Secretary of the military department September 28, 1966, while serving as a mem- bility period and met the service require- concerned) under which agreement the per- ber of the Army. ments for the award of that medal prescribed son shall— (3) To Albert C. Welch of Highland Ranch, under subsection (c). ‘‘(1) upon completion of initial entry train- Colorado, for extraordinary heroism in ac- ‘‘(b) In this section, the term ‘KDSM eligi- ing (as prescribed by the Secretary of De- tions in Ong Thanh, Binh Long Province, Re- bility period’ means the period beginning on fense), serve on active duty in the armed public of Vietnam, on October 17, 1967, while July 28, 1954, and ending on such date after forces in a military occupational specialty serving as a member of the Army. the date of the enactment of this section as designated by the Secretary of Defense under (c) DISTINGUISHED FLYING CROSS OF THE may be determined by the Secretary of De- subsection (c) for a period of 15 months; and NAVY.—Subsection (a) applies to the award fense to be appropriate for terminating eligi- ‘‘(2) upon completion of such service on ac- of the Distinguished Flying Cross of the bility for the Korea Defense Service Medal. tive duty, and without a break in service, Navy as follows: ‘‘(c) The Secretary of the Navy shall preserve the minimum period of obligated serv- (1) To Eduguardo Coppola of Falls Church, scribe service requirements for eligibility for ice specified in the agreement under this Virginia, for extraordinary achievement the Korea Defense Service Medal. Those re- section— while participating in aerial flight during quirements shall not be more stringent than ‘‘(A) on active duty in the armed forces; World War II, while serving as a member of the service requirements for award of the ‘‘(B) in the Selected Reserve; the Navy. Armed Forces Expeditionary Medal for in- ‘‘(C) in the Individual Ready Reserve; (2) To James Hoisington, Jr., of Stillman stances in which the award of that medal is ‘‘(D) in the Peace Corps, Americorps, or an- Valley, Illinois, for extraordinary achieve- authorized.’’. other national service program jointly des- ment while participating in aerial flight dur- (2) The table of sections at the beginning of ignated by the Secretary of Defense and the ing World War II, while serving as a member such chapter is amended by adding at the head of such program for purposes of this of the Navy. end the following new item: section; or (3) To William M. Melvin of Lawrenceburg, ‘‘6257. Korea Defense Service Medal.’’. ‘‘(E) in any combination of service referred Tennessee, for extraordinary achievement to in subparagraphs (A) through (D) that is (d) AIR FORCE.—(1) Chapter 857 of title 10, while participating in aerial flight during approved by the Secretary of the military United States Code, is amended by adding at department concerned pursuant to regula- World War II, while serving as a member of the end the following new section: the Navy. tions prescribed by the Secretary of Defense. (4) To Vincent Urbank of Tom River, New ‘‘§ 8755. Korea Defense Service Medal ‘‘(c) DESIGNATED MILITARY OCCUPATIONAL Jersey, for extraordinary achievement while ‘‘(a) The Secretary of the Air Force shall SPECIALTIES.—The Secretary of Defense shall participating in aerial flight during World issue a campaign medal, to be known as the designate military occupational specialties War II, while serving as a member of the Korea Defense Service Medal, to each person for purposes of subsection (b)(1). Such mili- Navy. who while a member of the Air Force served tary occupational specialties shall be military occupational specialties that will facili- SEC. 532. KOREA DEFENSE SERVICE MEDAL. in the Republic of Korea or the waters adja- tate, as determined by the Secretary, pursuit (a) FINDINGS.—Congress makes the fol- cent thereto during the KDSM eligibility pe- of national service by National Call to Serv- lowing findings: riod and met the service requirements for ice participants during and after their com- (1) More than 40,000 members of the United the award of that medal prescribed under subsection (c). pletion of duty or service under an agree- States Armed Forces have served on the Ko- ment under subsection (b). rean Peninsula each year since the signing of ‘‘(b) In this section, the term ‘KDSM eligibility period’ means the period beginning on ‘‘(d) INCENTIVES.—The incentives specified the cease-fire agreement in July 1953 ending in this subsection are as follows: July 28, 1954, and ending on such date after the Korean War. ‘‘(1) Payment of a bonus in the amount of the date of the enactment of this section as (2) An estimated 1,200 members of the $5,000. may be determined by the Secretary of De- United States Armed Forces died as a direct ‘‘(2) Payment of outstanding principal and fense to be appropriate for terminating eligi- result of their service in Korea since the interest on qualifying student loans of the cease-fire agreement in July 1953. bility for the Korea Defense Service Medal. ‘‘(c) The Secretary of the Air Force shall National Call to Service participant in an (b) ARMY.—(1) Chapter 357 of title 10, amount not to exceed $18,000. United States Code, is amended by adding at prescribe service requirements for eligibility for the Korea Defense Service Medal. Those ‘‘(3) Entitlement to an allowance for edu- the end the following new section: cational assistance at the monthly rate ‘‘§ 3755. Korea Defense Service Medal requirements shall not be more stringent than the service requirements for award of equal to the monthly rate payable for basic ‘‘(a) The Secretary of the Army shall issue the Armed Forces Expeditionary Medal for educational assistance allowances under sec- a campaign medal, to be known as the Korea instances in which the award of that medal tion 3015(a)(1) of title 38 for a total of 12 Defense Service Medal, to each person who is authorized.’’. months. while a member of the Army served in the (2) The table of sections at the beginning of ‘‘(4) Entitlement to an allowance for edu- Republic of Korea or the waters adjacent such chapter is amended by adding at the cational assistance at the monthly rate thereto during the KDSM eligibility period 2 3 end the following new item: equal to ⁄ of the monthly rate payable for and met the service requirements for the basic educational assistance allowances award of that medal prescribed under sub- ‘‘8755. Korea Defense Service Medal.’’. under section 3015(b)(1) of title 38 for a total section (c). (e) AWARD FOR SERVICE BEFORE DATE OF of 36 months. ‘‘(b) In this section, the term ‘KDSM eligi- ENACTMENT.—The Secretary of the military ‘‘(e) ELECTION OF INCENTIVES.—A National bility period’ means the period beginning on department concerned shall take appropriate Call to Service participant shall elect in the

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6383 agreement under subsection (b) which incen- the termination of an agreement entered covered by that subparagraph without prior tive under subsection (d) to receive. An elec- into under subsection (b) does not discharge written consent. Each institution of higher tion under this subsection is irrevocable. the person signing the agreement from a education shall notify students and parents ‘‘(f) PAYMENT OF BONUS AMOUNTS.—(1) Pay- debt arising under the agreement or under of the rights provided under the preceding ment to a National Call to Service partici- paragraph (1). sentence. pant of the bonus elected by the National ‘‘(i) FUNDING.—Amounts for payment of in- ‘‘(3) In this subsection, the term ‘institu- Call to Service participant under subsection centives under subsection (d), including pay- tion of higher education’ has the meaning (d)(1) shall be made in such time and manner ment of allowances for educational assist- given the term in section 101 of the Higher as the Secretary of Defense shall prescribe. ance under that subsection, shall be derived Education Act of 1965 (20 U.S.C. 1001).’’. ‘‘(2)(A) Payment of outstanding principal from amounts available to the Secretary of (b) NOTIFICATION.—The Secretary of Edu- and interest on the qualifying student loans the military department concerned for pay- cation shall provide to institutions of higher of a National Call to Service participant, as ment of pay, allowances, and other expenses education notice of the provisions of sub- elected under subsection (d)(2), shall be made of the members of the armed force con- section (d) of section 503 of title 10, United in such time and manner as the Secretary of cerned. States Code, as amended by subsection (a) of Defense shall prescribe. ‘‘(j) REGULATIONS.—The Secretary of De- this section. Such notice shall be provided ‘‘(B) Payment under this paragraph of the fense and the Secretaries of the military de- not later than 120 days after the date of the outstanding principal and interest on the partments shall prescribe regulations for enactment of this Act, and shall be provided qualifying student loans of a National Call purposes of the program under this section. in consultation with the Secretary of De- to Service participant shall be made to the ‘‘(k) DEFINITIONS.—In this section: fense. holder of such student loans, as identified by ‘‘(1) The term ‘Americorps’ means the Subtitle F—Other Matters the National Call to Service participant to Americorps program carried out under sub- SEC. 551. BIENNIAL SURVEYS ON RACIAL, ETH- the Secretary of the military department title C of title I of the National and Commu- NIC, AND GENDER ISSUES. concerned for purposes of such payment. nity Service Act of 1990 (42 U.S.C. 12571 et (a) DIVISION OF ANNUAL SURVEY INTO TWO ‘‘(3) Payment of a bonus or incentive in ac- seq.). BIENNIAL SURVEYS.—Section 481 of title 10, cordance with this subsection shall be made ‘‘(2) The term ‘qualifying student loan’ United States Code, is amended to read as by the Secretary of the military department means a loan, the proceeds of which were follows: concerned. used to pay the cost of attendance (as de- ‘‘(g) COORDINATION WITH MONTGOMERY GI ‘‘§ 481. Racial, ethnic, and gender issues: bi- fined in section 472 of the Higher Education ennial surveys BILL BENEFITS.—(1) A National Call to Serv- Act of 1965 (20 U.S.C. 1087ll) at an institution ice participant who elects an incentive under of higher education (as defined in section 101 ‘‘(a) IN GENERAL.—The Secretary of De- paragraph (3) or (4) of subsection (d) is not of the Higher Education Act of 1965 (20 U.S.C. fense shall carry out two separate biennial entitled to educational assistance under 1001). surveys in accordance with this section to chapter 1606 of title 10 or basic educational ‘‘(3) The term ‘Secretary of a military de- identify and assess racial, ethnic, and gender assistance under subchapter II of chapter 30 partment’ includes the Secretary of Trans- issues and discrimination among members of of title 38. portation, with respect to matters con- the armed forces serving on active duty and ‘‘(2)(A) The Secretary of Defense shall, to cerning the Coast Guard when it is not oper- the extent (if any) of activity among such the maximum extent practicable, administer ating as a service in the Navy.’’. members that may be seen as so-called ‘hate the receipt by National Call to Service par- (2) The table of sections at the beginning of group’ activity. ‘‘(b) BIENNIAL SURVEY ON RACIAL AND ETH- ticipants of incentives under paragraph (3) or that chapter is amended by inserting after NIC ISSUES.—One of the surveys conducted (4) of subsection (d) as if such National Call the item relating to section 325 the following every two years under this section shall so- to Service participants were, in receiving new item: such incentives, receiving educational assist- licit information on racial and ethnic issues ‘‘326. Enlistment incentives for pursuit of ance for members of the Selected Reserve and the climate in the armed forces for form- skills to facilitate national under chapter 1606 of title 10. ing professional relationships among mem- service.’’. ‘‘(B) The Secretary of Defense shall, in bers of the armed forces of the various racial consultation with the Secretary of Veterans (b) EFFECTIVE DATE.—The amendments and ethnic groups. The information solicited Affairs, prescribe regulations for purposes of made by subsection (a) shall take effect on shall include the following: subparagraph (A). Such regulations shall, to October 1, 2002. No individual entering into ‘‘(1) Indicators of positive and negative the maximum extent practicable, take into an enlistment before that date may partici- trends for professional and personal relation- account the administrative provisions of pate in the program under section 326 of title ships among members of all racial and eth- chapters 30 and 36 of title 38 that are speci- 37, United States Code, as added by that sub- nic groups. fied in section 16136 of title 10. section. ‘‘(2) The effectiveness of Department of De- ‘‘(3) Except as provided in paragraph (1), SEC. 542. MILITARY RECRUITER ACCESS TO IN- fense policies designed to improve relation- nothing in this section shall prohibit a Na- STITUTIONS OF HIGHER EDU- ships among all racial and ethnic groups. tional Call to Service participant who satis- CATION. ‘‘(3) The effectiveness of current processes fies through service under subsection (b) the (a) ACCESS TO INSTITUTIONS OF HIGHER EDU- for complaints on and investigations into ra- eligibility requirements for educational as- CATION.—Section 503 of title 10, United cial and ethnic discrimination. sistance under chapter 1606 of title 10 or States Code, is amended— ‘‘(c) BIENNIAL SURVEY ON GENDER ISSUES.— basic educational assistance under chapter 30 (1) by redesignating subsection (d) as sub- One of the surveys conducted every two of title 38 from an entitlement to such edu- section (e); and years under this section shall solicit infor- cational assistance under chapter 1606 of (2) by inserting after subsection (c) the fol- mation on gender issues, including issues re- title 10 or basic educational assistance under lowing new subsection (d): lating to gender-based harassment and dis- chapter 30 of title 38, as the case may be. ‘‘(d) ACCESS TO INSTITUTIONS OF HIGHER crimination, and the climate in the armed ‘‘(h) REPAYMENT.—(1) If a National Call to EDUCATION.—(1) Each institution of higher forces for forming professional relationships Service participant who has entered into an education receiving assistance under the between male and female members of the agreement under subsection (b) and received Higher Education Act of 1965 (20 U.S.C. 1001 armed forces. The information solicited shall or benefited from an incentive under sub- et seq.)— include the following: section (d)(1) or (d)(2) fails to complete the ‘‘(A) shall provide to military recruiters ‘‘(1) Indicators of positive and negative total period of service specified in such the same access to students at the institu- trends for professional and personal relation- agreement, the National Call to Service par- tion as is provided generally to prospective ships between male and female members of ticipant shall refund to the United States employers of those students; and the armed forces. the amount that bears the same ratio to the ‘‘(B) shall, upon a request made by mili- ‘‘(2) The effectiveness of Department of De- amount of the incentive as the uncompleted tary recruiters for military recruiting pur- fense policies designed to improve profes- part of such service bears to the total period poses, provide access to the names, address- sional relationships between male and fe- of such service. es, and telephone listings of students at the male members of the armed forces. ‘‘(2) Subject to paragraph (3), an obligation institution, notwithstanding section ‘‘(3) The effectiveness of current processes to reimburse the United States imposed 444(a)(5)(B) of the General Education Provi- for complaints on and investigations into under paragraph (1) is for all purposes a debt sions Act (20 U.S.C. 1232g(a)(5)(B)). gender-based discrimination. owed to the United States. ‘‘(2) An institution of higher education ‘‘(d) SURVEYS TO ALTERNATE EVERY ‘‘(3) The Secretary concerned may waive, may not release a student’s name, address, YEAR.—The biennial survey under subsection in whole or in part, a reimbursement re- and telephone listing under paragraph (1)(B) (b) shall be conducted in odd-numbered quired under paragraph (1) if the Secretary without the prior written consent of the stu- years. The biennial survey under subsection concerned determines that recovery would be dent or the parent of the student (in the case (c) shall be conducted in even-numbered against equity and good conscience or would of a student under the age of 18) if the stu- years. be contrary to the best interests of the dent, or a parent of the student, as appro- ‘‘(e) IMPLEMENTING ENTITY.—The Secretary United States. priate, has submitted a request to the insti- shall carry out the biennial surveys through ‘‘(4) A discharge in bankruptcy under title tution of higher education that the student’s entities in the Department of Defense as fol- 11 that is entered into less than 5 years after information not be released for a purpose lows:

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 S6384 CONGRESSIONAL RECORD — SENATE July 8, 2002 ‘‘(1) The biennial review under subsection from wages, salaries, tips, other personal (5) by adding at the end the following: (b), through the Armed Forces Survey on Ra- service income, unemployment compensa- ‘‘(2) A stipend paid under paragraph (1)(A) cial and Ethnic Issues. tion, and public assistance benefits from any to a member or former member of the armed ‘‘(2) The biennial review under subsection Government agency during the period the of- forces in a retired status shall be in addition (c), through the Armed Forces Survey on ficer is deemed to have accrued pay and al- to any other compensation to which the re- Gender Issues. lowances. Except as provided in paragraph tired member may be entitled.’’. ‘‘(f) REPORTS TO CONGRESS.—Upon the com- (3), such payment shall be made within 60 pletion of a biennial survey under this sec- days after the date on which the Secretary SEC. 554. WEAR OF ABAYAS BY FEMALE MEM- concerned decides not to remove the officer BERS OF THE ARMED FORCES IN tion, the Secretary shall submit to Congress SAUDI ARABIA. a report containing the results of the survey. from active duty. ‘‘(g) INAPPLICABILITY TO COAST GUARD.— ‘‘(3) If an officer is entitled to be paid (a) PROHIBITIONS RELATING TO WEAR OF The requirements for surveys under this sec- under this section, but fails to provide suffi- ABAYAS.—No member of the Armed Forces tion do not apply to the Coast Guard.’’. cient information in a timely manner re- having authority over a member of the (b) CLERICAL AMENDMENT.—The item relat- garding the officer’s income when such infor- Armed Forces and no officer or employee of ing to such section in the table of sections at mation is requested under regulations pre- the United States having authority over a the beginning of chapter 23 of such title is scribed under subsection (c), the period of member of the Armed Forces may— amended to read as follows: time prescribed in paragraph (2) shall be ex- (1) require or encourage that member to ‘‘481. Racial, ethnic, and gender issues: bien- tended until 30 days after the date on which wear the abaya garment or any part of the nial surveys.’’. the member provides the information re- abaya garment while the member is in the quested. Kingdom of Saudi Arabia pursuant to a per- SEC. 552. LEAVE REQUIRED TO BE TAKEN PEND- ‘‘(c) This section shall be administered ING REVIEW OF A RECOMMENDA- manent change of station or orders for tem- TION FOR REMOVAL BY A BOARD OF under uniform regulations prescribed by the porary duty; or INQUIRY. Secretaries concerned. The regulations may (2) take any adverse action, whether for- (a) REQUIREMENT.—Section 1182(c) of title provide for the method of determining an of- mal or informal, against the member for 10, United States Code, is amended— ficer’s income during any period the officer choosing not to wear the abaya garment or (1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and is deemed to have accrued pay and allow- any part of the abaya garment while the (2) by adding at the end the following new ances, including a requirement that the offi- member is in the Kingdom of Saudi Arabia paragraph: cer provide income tax returns and other pursuant to a permanent change of station ‘‘(2) Under regulations prescribed by the documentation to verify the amount of the or orders for temporary duty. officer’s income.’’. Secretary concerned, an officer referred to in (b) INSTRUCTION.—(1) The Secretary of De- (c) CONFORMING AMENDMENTS.—(1) Section paragraph (1) may be required to take leave fense shall provide each female member of 706 of such title is amended by inserting ‘‘or pending the completion of the action under the Armed Forces ordered to a permanent 1182(c)(2)’’ after ‘‘section 876a’’ in subsections this chapter in the case of that officer. The change of station or temporary duty in the officer may be required to begin such leave (a), (b), and (c). (2) The heading for such section is amended Kingdom of Saudi Arabia with instructions at any time following the officer’s receipt of to read as follows: regarding the prohibitions in subsection (a) the report of the board of inquiry, including immediately upon the arrival of the member the board’s recommendation for removal ‘‘§ 706. Administration of required leave’’. at a United States military installation from active duty, and the expiration of any (d) CLERICAL AMENDMENTS.—The table of within the Kingdom of Saudi Arabia. The in- period allowed for submission by the officer sections at the beginning of chapter 40 of structions shall be presented orally and in of a rebuttal to that report. The leave may title 10, United States Code, is amended— writing. The written instruction shall in- be continued until the date on which action (1) by striking the item relating to section clude the full text of this section. 706 and inserting the following: by the Secretary concerned under this chap- (2) In carrying out paragraph (1), the Sec- ter is completed in the case of the officer or ‘‘706. Administration of required leave.’’; retary shall act through the Commander in may be terminated at any earlier time.’’. and Chief, United States Central Command and (b) PAYMENT FOR MANDATORY EXCESS (2) by inserting after the item relating to Joint Task Force Southwest Asia, and the LEAVE UPON DISAPPROVAL OF CERTAIN INVOL- section 707 the following new item: commanders of the Army, Navy, Air Force, UNTARY SEPARATION RECOMMENDATIONS.— ‘‘707a. Payment upon disapproval of certain and Marine Corps components of the United Chapter 40 of such title is amended by insert- board of inquiry recommenda- States Central Command and Joint Task ing after section 707 the following new sections for excess leave required Force Southwest Asia. tion: to be taken.’’. (c) PROHIBITION ON USE OF FUNDS FOR PRO- ‘‘§ 707a. Payment upon disapproval of certain SEC. 553. STIPEND FOR PARTICIPATION IN FU- CUREMENT OF ABAYAS.—Funds appropriated board of inquiry recommendations for ex- NERAL HONORS DETAILS. or otherwise made available to the Depart- cess leave required to be taken Section 1491(d) of title 10, United States ment of Defense may not be used to procure ‘‘(a) An officer— Code, is amended— abayas for regular or routine issuance to ‘‘(1) who is required to take leave under (1) by striking paragraph (1) and inserting members of the Armed Forces serving in the section 1182(c)(2) of this title, any period of the following: Kingdom of Saudi Arabia or for any per- which is charged as excess leave under sec- ‘‘(A) For a participant in the funeral hon- sonnel of contractors accompanying the tion 706(a) of this title, and ors detail who is a member or former mem- Armed Forces in the Kingdom of Saudi Ara- ‘‘(2) whose recommendation for removal ber of the armed forces in a retired status or bia in the performance of contracts entered from active duty in a report of a board of in- is not a member of the armed forces (other into with such contractors by the United quiry is not approved by the Secretary con- than a former member in a retired status) States. cerned under section 1184 of this title, and not an employee of the United States, shall be paid, as provided in subsection (b), either— TITLE VI—COMPENSATION AND OTHER for the period of leave charged as excess ‘‘(i) transportation; or PERSONNEL BENEFITS leave. ‘‘(ii) a daily stipend prescribed annually by Subtitle A—Pay and Allowances ‘‘(b)(1) An officer entitled to be paid under the Secretary of Defense at a single rate that this section shall be deemed, for purposes of is designed to defray the costs for transpor- SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003. this section, to have accrued pay and allow- tation and other expenses incurred by the ances for each day of leave required to be participant in connection with participation (a) WAIVER OF SECTION 1009 ADJUSTMENT.— taken under section 1182(c)(2) of this title in the funeral honors detail.’’; The adjustment to become effective during that is charged as excess leave (except any (2) by inserting ‘‘(1)’’ after ‘‘(d) SUPPORT.— fiscal year 2003 required by section 1009 of day of accrued leave for which the officer has ’’; title 37, United States Code, in the rates of been paid under section 706(b)(1) of this title (3) by redesignating paragraph (2) as sub- monthly basic pay authorized members of and which has been charged as excess leave). paragraph (B); the uniformed services shall not be made. ‘‘(2) The officer shall be paid the amount of (4) in subparagraph (B), as so redesignated, (b) INCREASE IN BASIC PAY.—Effective on pay and allowances that is deemed to have by inserting ‘‘members of the armed forces January 1, 2003, the rates of monthly basic accrued to the officer under paragraph (1), in a retired status and’’ after ‘‘training for’’; pay for members of the uniformed services reduced by the total amount of his income and within each pay grade are as follows:

COMMISSIONED OFFICERS 1 Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–10 2 .... $0.00 $0.00 $0.00 $0.00 $0.00 O–9 ...... 0.00 0.00 0.00 0.00 0.00 O–8 ...... 7,474.50 7,719.30 7,881.60 7,927.20 8,129.40

VerDate 11-MAY-2000 03:05 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6385 COMMISSIONED OFFICERS 1—Continued Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–7 ...... 6,210.90 6,499.20 6,633.00 6,739.20 6,930.90 O–6 ...... 4,603.20 5,057.10 5,388.90 5,388.90 5,409.60 O–5 ...... 3,837.60 4,323.00 4,622.40 4,678.50 4,864.80 O–4 ...... 3,311.10 3,832.80 4,088.70 4,145.70 4,383.00 O–3 3 ...... 2,911.20 3,300.30 3,562.20 3,883.50 4,069.50 O–2 3 ...... 2,515.20 2,864.70 3,299.40 3,410.70 3,481.20 O–1 3 ...... 2,183.70 2,272.50 2,746.80 2,746.80 2,746.80

Over 8 Over 10 Over 12 Over 14 Over 16

O–10 2 .... $0.00 $0.00 $0.00 $0.00 $0.00 O–9 ...... 0.00 0.00 0.00 0.00 0.00 O–8 ...... 8,468.70 8,547.30 8,868.90 8,961.30 9,238.20 O–7 ...... 7,120.80 7,340.40 7,559.40 7,779.00 8,468.70 O–6 ...... 5,641.20 5,672.10 5,672.10 5,994.60 6,564.30 O–5 ...... 4,977.00 5,222.70 5,403.00 5,635.50 5,991.90 O–4 ...... 4,637.70 4,954.50 5,201.40 5,372.70 5,471.10 O–3 3 ...... 4,273.50 4,405.80 4,623.30 4,736.10 4,736.10 O–2 3 ...... 3,481.20 3,481.20 3,481.20 3,481.20 3,481.20 O–1 3 ...... 2,746.80 2,746.80 2,746.80 2,746.80 2,746.80

Over 18 Over 20 Over 22 Over 24 Over 26

O–10 2 .... $0.00 $12,077.70 $12,137.10 $12,389.40 $12,829.20 O–9 ...... 0.00 10,563.60 10,715.70 10,935.60 11,319.60 O–8 ...... 9,639.00 10,008.90 10,255.80 10,255.80 10,255.80 O–7 ...... 9,051.30 9,051.30 9,051.30 9,051.30 9,096.90 O–6 ...... 6,898.80 7,233.30 7,423.50 7,616.10 7,989.90 O–5 ...... 6,161.70 6,329.10 6,519.60 6,519.60 6,519.60 O–4 ...... 5,528.40 5,528.40 5,528.40 5,528.40 5,528.40 O–3 3 ...... 4,736.10 4,736.10 4,736.10 4,736.10 4,736.10 O–2 3 ...... 3,481.20 3,481.20 3,481.20 3,481.20 3,481.20 O–1 3 ...... 2,746.80 2,746.80 2,746.80 2,746.80 2,746.80 1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned officers in pay grades O–7 through O–10 may not exceed the rate of pay for level III of the Executive Schedule and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the Executive Schedule. 2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of the Coast Guard, the rate of basic pay for this grade is $14,155.50, regardless of cumulative years of service computed under section 205 of title 37, United States Code. 3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have been credited with over 4 years of active duty service as an enlisted member or warrant officer.

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–3E ...... $0.00 $0.00 $0.00 $3,883.50 $4,069.50 O–2E ...... 0.00 0.00 0.00 3,410.70 3,481.20 O–1E ...... 0.00 0.00 0.00 2,746.80 2,933.70

Over 8 Over 10 Over 12 Over 14 Over 16

O–3E ...... $4,273.50 $4,405.80 $4,623.30 $4,806.30 $4,911.00 O–2E ...... 3,591.90 3,778.80 3,923.40 4,031.10 4,031.10 O–1E ...... 3,042.00 3,152.70 3,261.60 3,410.70 3,410.70

Over 18 Over 20 Over 22 Over 24 Over 26

O–3E ...... $5,054.40 $5,054.40 $5,054.40 $5,054.40 $5,054.40 O–2E ...... 4,031.10 4,031.10 4,031.10 4,031.10 4,031.10 O–1E ...... 3,410.70 3,410.70 3,410.70 3,410.70 3,410.70

WARRANT OFFICERS 1 Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

W–5 ...... $0.00 $0.00 $0.00 $0.00 $0.00 W–4 ...... 3,008.10 3,236.10 3,329.10 3,420.60 3,578.10 W–3 ...... 2,747.10 2,862.00 2,979.30 3,017.70 3,141.00 W–2 ...... 2,416.50 2,554.50 2,675.10 2,763.00 2,838.30 W–1 ...... 2,133.90 2,308.50 2,425.50 2,501.10 2,662.50

Over 8 Over 10 Over 12 Over 14 Over 16

W–5 ...... $0.00 $0.00 $0.00 $0.00 $0.00 W–4 ...... 3,733.50 3,891.00 4,044.60 4,203.60 4,356.00 W–3 ...... 3,281.70 3,467.40 3,580.50 3,771.90 3,915.60 W–2 ...... 2,993.10 3,148.50 3,264.00 3,376.50 3,453.90 W–1 ...... 2,782.20 2,888.40 3,006.90 3,085.20 3,203.40

Over 18 Over 20 Over 22 Over 24 Over 26

W–5 ...... $0.00 $5,169.30 $5,346.60 $5,524.50 $5,703.30 W–4 ...... 4,512.00 4,664.40 4,822.50 4,978.20 5,137.50

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 S6386 CONGRESSIONAL RECORD — SENATE July 8, 2002 WARRANT OFFICERS 1—Continued Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

W–3 ...... 4,058.40 4,201.50 4,266.30 4,407.00 4,548.00 W–2 ...... 3,579.90 3,705.90 3,831.00 3,957.30 3,957.30 W–1 ...... 3,320.70 3,409.50 3,409.50 3,409.50 3,409.50 1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers may not exceed the rate of pay for level V of the Executive Schedule.

ENLISTED MEMBERS 1 Years of service computed under section 205 of title 37, United States Code

Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6

E–9 2 ...... $0.00 $0.00 $0.00 $0.00 $0.00 E–8 ...... 0.00 0.00 0.00 0.00 0.00 E–7 ...... 2,068.50 2,257.80 2,343.90 2,428.20 2,516.40 E–6 ...... 1,770.60 1,947.60 2,033.70 2,117.10 2,204.10 E–5 ...... 1,625.40 1,733.70 1,817.40 1,903.50 2,037.00 E–4 ...... 1,502.70 1,579.80 1,665.30 1,749.30 1,824.00 E–3 ...... 1,356.90 1,442.10 1,528.80 1,528.80 1,528.80 E–2 ...... 1,290.00 1,290.00 1,290.00 1,290.00 1,290.00 E–1 3 ...... 1,150.80 1,150.80 1,150.80 1,150.80 1,150.80

Over 8 Over 10 Over 12 Over 14 Over 16

E–9 2 ...... $0.00 $3,564.30 $3,645.00 $3,747.00 $3,867.00 E–8 ...... 2,975.40 3,061.20 3,141.30 3,237.60 3,342.00 E–7 ...... 2,667.90 2,753.40 2,838.30 2,990.40 3,066.30 E–6 ...... 2,400.90 2,477.40 2,562.30 2,636.70 2,663.10 E–5 ...... 2,151.90 2,236.80 2,283.30 2,283.30 2,283.30 E–4 ...... 1,824.00 1,824.00 1,824.00 1,824.00 1,824.00 E–3 ...... 1,528.80 1,528.80 1,528.80 1,528.80 1,528.80 E–2 ...... 1,290.00 1,290.00 1,290.00 1,290.00 1,290.00 E–1 3 ...... 1,150.80 1,150.80 1,150.80 1,150.80 1,150.80

Over 18 Over 20 Over 22 Over 24 Over 26

E–9 2 ...... $3,987.30 $4,180.80 $4,344.30 $4,506.30 $4,757.40 E–8 ...... 3,530.10 3,625.50 3,787.50 3,877.50 4,099.20 E–7 ...... 3,138.60 3,182.70 3,331.50 3,427.80 3,671.40 E–6 ...... 2,709.60 2,709.60 2,709.60 2,709.60 2,709.60 E–5 ...... 2,283.30 2,283.30 2,283.30 2,283.30 2,283.30 E–4 ...... 1,824.00 1,824.00 1,824.00 1,824.00 1,824.00 E–3 ...... 1,528.80 1,528.80 1,528.80 1,528.80 1,528.80 E–2 ...... 1,290.00 1,290.00 1,290.00 1,290.00 1,290.00 E–1 3 ...... 1,150.80 1,150.80 1,150.80 1,150.80 1,150.80 1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for enlisted members may not exceed the rate of pay for level V of the Executive Schedule. 2 Subject to the preceding footnote, while serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty Officer of the Coast Guard, the rate of basic pay for this grade is $5,732.70, regardless of cumulative years of service computed under section 205 of title 37, United States Code. 3 In the case of members in pay grade E–1 who have served less than 4 months on active duty, the rate of basic pay is $1,064.70.

SEC. 602. RATE OF BASIC ALLOWANCE FOR SUB- (1) by transferring paragraph (7) of sub- quired or constructed under the authority of SISTENCE FOR ENLISTED PER- section (b) to the end of the section; and subchapter IV of chapter 169 of title 10, SONNEL OCCUPYING SINGLE GOV- (2) in such paragraph— United States Code. ERNMENT QUARTERS WITHOUT ADE- (A) by striking ‘‘(7)’’ and all that follows QUATE AVAILABILITY OF MEALS. (c) TREATMENT OF HOUSING AS GOVERNMENT through ‘‘circumstances of which make it (a) AUTHORITY TO PAY INCREASED RATE.— QUARTERS.—For purposes of section 403 of Section 402(d) of title 37, United States Code, necessary that the member be’’ and inserting ‘‘(o) TREATMENT OF LOW-COST AND NO-COST title 37, United States Code, a member of the is amended to read as follows: Armed Forces (without dependents) in ‘‘(d) SPECIAL RATE FOR ENLISTED MEMBERS MOVES AS NOT BEING REASSIGNMENTS.—In privatized housing shall be treated as resid- OCCUPYING SINGLE QUARTERS WITHOUT ADE- the case of a member who is assigned to duty ing in quarters of the United States or a QUATE AVAILABILITY OF MEALS.—The Sec- at a location or under circumstances that retary of Defense, and the Secretary of make it necessary for the member to be’’; housing facility under the jurisdiction of the Transportation with respect to the Coast and Secretary of a military department while a Guard when it is not operating as a service (B) by inserting ‘‘for the purposes of this higher rate of partial allowance for housing in the Navy, may pay an enlisted member section’’ after ‘‘may be treated’’. is paid for the member under this section. SEC. 604. TEMPORARY AUTHORITY FOR HIGHER the basic allowance for subsistence under (d) PAYMENT TO PRIVATE SOURCE.—The par- RATES OF PARTIAL BASIC ALLOW- this section at a monthly rate that is twice tial basic allowance for housing paid for a the amount in effect under subsection (b)(2) ANCE FOR HOUSING FOR CERTAIN MEMBERS ASSIGNED TO HOUSING member at a higher rate under this section while— UNDER ALTERNATIVE AUTHORITY may be paid directly to the private sector ‘‘(1) the member is assigned to single Gov- FOR ACQUISITION AND IMPROVE- source of the housing to whom the member ernment quarters which have no adequate MENT OF MILITARY HOUSING. is obligated to pay rent or other charge for food storage or preparation facility in the (a) AUTHORITY.—The Secretary of Defense quarters; and may prescribe and, under section 403(n) of residing in such housing if the private sector ‘‘(2) there is no Government messing facil- title 37, United States Code, pay for members source credits the amount so paid against ity serving those quarters that is capable of of the Armed Forces (without dependents) in the amount owed by the member for the rent making meals available to the occupants of privatized housing higher rates of partial or other charge. the quarters.’’. basic allowance for housing than those that (e) TERMINATION OF AUTHORITY.—Rates pre- (b) EFFECTIVE DATE.—Subsection (a) and are authorized under paragraph (2) of such scribed under subsection (a) may not be paid the amendment made by such subsection section 403(n). under the authority of this section in con- shall take effect on October 1, 2002. (b) MEMBERS IN PRIVATIZED HOUSING.—For nection with contracts that are entered into SEC. 603. BASIC ALLOWANCE FOR HOUSING IN the purposes of this section, a member of the CASES OF LOW-COST OR NO-COST Armed Forces (without dependents) is a after December 31, 2007, for the construction MOVES. member of the Armed Forces (without de- or acquisition of housing under the author- Section 403 of title 37, United States Code, pendents) in privatized housing while the ity of subchapter IV of chapter 169 of title 10, is amended— member is assigned to housing that is ac- United States Code.

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.026 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6387 Subtitle B—Bonuses and Special and ed by striking ‘‘December 31, 2002’’ and in- SEC. 618. INCREASED MAXIMUM AMOUNTS FOR Incentive Pays serting ‘‘December 31, 2003’’. PRIOR SERVICE ENLISTMENT (c) ENLISTMENT BONUS FOR ACTIVE MEM- BONUS. SEC. 611. ONE-YEAR EXTENSION OF CERTAIN Section 308i(b)(1) of title 37, United States BONUS AND SPECIAL PAY AUTHORI- BERS.—Section 309(e) of such title is amended TIES FOR RESERVE FORCES. by striking ‘‘December 31, 2002’’ and insert- Code, is amended— (a) SELECTED RESERVE REENLISTMENT ing ‘‘December 31, 2003’’. (1) in subparagraph (A), by striking BONUS.—Section 308b(f ) of title 37, United (d) RETENTION BONUS FOR MEMBERS WITH ‘‘$5,000’’ and inserting ‘‘$8,000’’; States Code, is amended by striking ‘‘Decem- CRITICAL MILITARY SKILLS.—Section 323(i) of (2) in subparagraph (B), by striking ber 31, 2002’’ and inserting ‘‘December 31, such title is amended by striking ‘‘December ‘‘$2,500’’ and inserting ‘‘$4,000’’; and 2003’’. 31, 2002’’ and inserting ‘‘December 31, 2003’’. (3) in subparagraph (C), by striking (b) SELECTED RESERVE ENLISTMENT (e) ACCESSION BONUS FOR NEW OFFICERS IN ‘‘$2,000’’ and inserting ‘‘$3,500’’. BONUS.—Section 308c(e) of such title is CRITICAL SKILLS.—Section 324(g) of such title Subtitle C—Travel and Transportation amended by striking ‘‘December 31, 2002’’ and is amended by striking ‘‘December 31, 2002’’ Allowances and inserting ‘‘December 31, 2003’’. inserting ‘‘December 31, 2003’’. SEC. 631. DEFERRAL OF TRAVEL IN CONNECTION (c) SPECIAL PAY FOR ENLISTED MEMBERS SEC. 615. INCREASED MAXIMUM AMOUNT PAY- WITH LEAVE BETWEEN CONSECU- ASSIGNED TO CERTAIN HIGH PRIORITY UNITS.— ABLE AS MULTIYEAR RETENTION TIVE OVERSEAS TOURS. BONUS FOR MEDICAL OFFICERS OF Section 308d(c) of such title is amended by ATE TO HICH RAVEL AY E E THE ARMED FORCES. (a) D W T M B D - striking ‘‘December 31, 2002’’ and inserting Section 301d(a)(2) of title 37, United States FERRED.—Section 411b(a)(2) of title 37, United ‘‘December 31, 2003’’. Code, is amended by striking ‘‘$14,000’’ and States Code, is amended by striking ‘‘not ELECTED RESERVE AFFILIATION (d) S inserting ‘‘$25,000’’. more than one year’’ in the first sentence BONUS.—Section 308e(e) of such title is and all that follows through ‘‘operation SEC. 616. INCREASED MAXIMUM AMOUNT PAY- amended by striking ‘‘December 31, 2002’’ and ABLE AS INCENTIVE SPECIAL PAY ends.’’ in the second sentence and inserting inserting ‘‘December 31, 2003’’. FOR MEDICAL OFFICERS OF THE the following: ‘‘the date on which the mem- (e) READY RESERVE ENLISTMENT AND REEN- ARMED FORCES. ber departs the duty station in termination LISTMENT BONUS.—Section 308h(g) of such Section 302(b)(1) of title 37, United States of the consecutive tour of duty at that duty title is amended by striking ‘‘December 31, Code, is amended— station or reports to another duty station 2002’’ and inserting ‘‘December 31, 2003’’. (1) by striking ‘‘fiscal year 1992, and’’ in under the order involved, as the case may (f) PRIOR SERVICE ENLISTMENT BONUS.— the second sentence and inserting ‘‘fiscal be.’’. Section 308i(f ) of such title is amended by year 1992,’’; and (b) EFFECTIVE DATE AND SAVINGS PROVI- striking ‘‘December 31, 2002’’ and inserting (2) by inserting before the period at the end SION.—(1) The amendment made by sub- ‘‘December 31, 2003’’. of such sentence the following: ‘‘and before section (a) shall take effect on October 1, SEC. 612. ONE-YEAR EXTENSION OF CERTAIN fiscal year 2003, and $50,000 for any twelve- 2002. BONUS AND SPECIAL PAY AUTHORI- month period beginning after fiscal year (2) Section 411b(a) of title 37, United States TIES FOR CERTAIN HEALTH CARE 2002’’. Code, as in effect on September 30, 2002, shall PROFESSIONALS. SEC. 617. ASSIGNMENT INCENTIVE PAY. continue to apply with respect to travel de- (a) NURSE OFFICER CANDIDATE ACCESSION (a) AUTHORITY.—(1) Chapter 5 of title 37, scribed in subsection (a)(2) of such title (as PROGRAM.—Section 2130a(a)(1) of title 10, United States Code, is amended by inserting in effect on such date) that commences be- United States Code, is amended by striking after section 305a the following new section: fore October 1, 2002. ‘‘December 31, 2002’’ and inserting ‘‘Decem- SEC. 632. TRANSPORTATION OF MOTOR VEHI- ber 31, 2003’’. ‘‘§ 305b. Special pay: assignment incentive pay CLES FOR MEMBERS REPORTED (b) REPAYMENT OF EDUCATION LOANS FOR MISSING. ‘‘(a) AUTHORITY.—The Secretary concerned, CERTAIN HEALTH PROFESSIONALS WHO SERVE (a) AUTHORITY TO SHIP TWO MOTOR VEHI- with the concurrence of the Secretary of De- IN THE SELECTED RESERVE.—Section 16302(d) CLES.—Subsection (a) of section 554 of title fense, may pay monthly incentive pay under of such title is amended by striking ‘‘Janu- 37, United States Code, is amended by strik- this section to a member of a uniformed ary 1, 2003’’ and inserting ‘‘January 1, 2004’’. ing ‘‘one privately owned motor vehicle’’ service for a period that the member per- (c) ACCESSION BONUS FOR REGISTERED both places it appears and inserting ‘‘two forms service, while entitled to basic pay, in NURSES.—Section 302d(a)(1) of title 37, privately owned motor vehicles’’. an assignment that is designated by the Sec- United States Code, is amended by striking (b) PAYMENTS FOR LATE DELIVERY.—Sub- retary concerned. ‘‘December 31, 2002’’ and inserting ‘‘Decem- section (i) of such section is amended by add- ‘‘(b) MAXIMUM RATE.—The maximum ber 31, 2003’’. ing at the end the following: ‘‘In a case in (d) INCENTIVE SPECIAL PAY FOR NURSE AN- monthly rate of incentive pay payable to a member under this section is $1,500. which two motor vehicles of a member (or ESTHETISTS.—Section 302e(a)(1) of such title the dependent or dependents of a member) is amended by striking ‘‘December 31, 2002’’ ‘‘(c) RELATIONSHIP TO OTHER PAY AND AL- LOWANCES.—Incentive pay paid to a member are transported at the expense of the United and inserting ‘‘December 31, 2003’’. States, no reimbursement is payable under (e) SPECIAL PAY FOR SELECTED RESERVE under this section is in addition to any other pay and allowances to which the member is this subsection unless both motor vehicles HEALTH PROFESSIONALS IN CRITICALLY SHORT do not arrive at the authorized destination WARTIME SPECIALTIES.—Section 302g(f ) of entitled. ‘‘(d) STATUS NOT AFFECTED BY TEMPORARY of the vehicles by the designated delivery such title is amended by striking ‘‘December date.’’. 31, 2002’’ and inserting ‘‘December 31, 2003’’. DUTY OR LEAVE.—The service of a member in an assignment referred to in subsection (a) (c) APPLICABILITY.—The amendments made (f) ACCESSION BONUS FOR DENTAL OFFI- shall not be considered discontinued during by subsection (a) shall apply with respect to CERS.—Section 302h(a)(1) of such title is any period that the member is not per- members whose eligibility for benefits under amended by striking ‘‘December 31, 2002’’ and section 554 of title 37, United States Code, inserting ‘‘December 31, 2003’’. forming service in such assignment by reason of temporary duty performed by the commences on or after the date of the enact- SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY ment of this Act. AND BONUS AUTHORITIES FOR NU- member pursuant to orders or absence of the CLEAR OFFICERS. member for authorized leave. SEC. 633. DESTINATIONS AUTHORIZED FOR GOV- ‘‘(e) TERMINATION OF AUTHORITY.—No as- ERNMENT PAID TRANSPORTATION (a) SPECIAL PAY FOR NUCLEAR-QUALIFIED signment incentive pay may be paid under OF ENLISTED PERSONNEL FOR REST OFFICERS EXTENDING PERIOD OF ACTIVE SERV- this section for months beginning more than AND RECUPERATION UPON EXTEND- ICE.—Section 312(e) of title 37, United States ING DUTY AT DESIGNATED OVER- Code, is amended by striking ‘‘December 31, three years after the date of the enactment SEAS LOCATIONS. 2002’’ and inserting ‘‘December 31, 2003’’. of the National Defense Authorization Act Section 705(b)(2) of title 10, United States for Fiscal Year 2003.’’. (b) NUCLEAR CAREER ACCESSION BONUS.— Code, is amended by inserting before the pe- (2) The table of sections at the beginning of Section 312b(c) of such title is amended by riod at the end the following: ‘‘, or to an al- such chapter is amended by inserting after striking ‘‘December 31, 2002’’ and inserting ternative destination at a cost not to exceed the item relating to section 305a the fol- ‘‘December 31, 2003’’. the cost of the round-trip transportation lowing new item: (c) NUCLEAR CAREER ANNUAL INCENTIVE from the location of the extended tour of BONUS.—Section 312c(d) of such title is ‘‘305b. Special pay: assignment incentive duty to such nearest port and return’’. pay.’’. amended by striking ‘‘December 31, 2002’’ and SEC. 634. VEHICLE STORAGE IN LIEU OF TRANS- inserting ‘‘December 31, 2003’’. (b) ANNUAL REPORT.—Not later than Feb- PORTATION TO CERTAIN AREAS OF SEC. 614. ONE-YEAR EXTENSION OF OTHER ruary 28 of each of 2004 and 2005, the Sec- THE UNITED STATES OUTSIDE CON- BONUS AND SPECIAL PAY AUTHORI- retary of Defense shall submit to the Com- TINENTAL UNITED STATES. TIES. mittees on Armed Services of the Senate and Section 2634(b) of title 10, United States (a) AVIATION OFFICER RETENTION BONUS.— the House of Representatives a report on the Code, is amended: Section 301b(a) of title 37, United States administration of the authority under sec- (1) by redesignating paragraphs (2), (3), and Code, is amended by striking ‘‘December 31, tion 305b of title 37, United States Code, as (4) as paragraphs (3), (4), and (5), respec- 2002’’ and inserting ‘‘December 31, 2003’’. added by subsection (a). The report shall in- tively; and (b) REENLISTMENT BONUS FOR ACTIVE MEM- clude an assessment of the utility of that au- (2) by inserting after paragraph (1) the fol- BERS.—Section 308(g) of such title is amend- thority. lowing new paragraph (2):

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‘‘(2) In lieu of transportation authorized by (f) PROHIBITION ON RETROACTIVE BENE- SEC. 652. TIME LIMITATION FOR USE OF MONT- this section, if a member is ordered to make FITS.—No benefits may be paid to any person GOMERY GI BILL ENTITLEMENT BY a change of permanent station to Alaska, by reason of section 1414 of title 10, United MEMBERS OF THE SELECTED RE- Hawaii, Puerto Rico, the Northern Mariana States Code, as amended by subsection (a), SERVE. (a) EXTENSION OF LIMITATION PERIOD.—Sec- Islands, Guam, or any territory or possession for any period before the effective date speci- tion 16133(a)(1) of title 10, United States of the United States and laws, regulations, fied in subsection (e). Code, is amended by striking ‘‘10-year’’ and or other restrictions preclude transportation SEC. 642. INCREASED RETIRED PAY FOR EN- inserting ‘‘14-year’’. of a motor vehicle described in subsection (a) LISTED RESERVES CREDITED WITH (b) EFFECTIVE DATE AND APPLICABILITY.— to the new station, the member may elect to EXTRAORDINARY HEROISM. The amendment made by subsection (a) shall have the vehicle stored at the expense of the (a) AUTHORITY.—Section 12739 of title 10, take effect on October 1, 2002, and shall apply United States at a location approved by the United States Code, is amended— with respect to periods of entitlement to Secretary concerned.’’. (1) by redesignating subsections (b) and (c) educational assistance under chapter 1606 of as subsections (c) and (d), respectively; Subtitle D—Retirement and Survivor Benefit title 10, United States Code, that begin on or (2) by inserting after subsection (a) the fol- Matters after October 1, 1992. SEC. 641. PAYMENT OF RETIRED PAY AND COM- lowing new subsection (b): ‘‘(b) If an enlisted member retired under SEC. 653. STATUS OF OBLIGATION TO REFUND PENSATION TO DISABLED MILITARY EDUCATIONAL ASSISTANCE UPON RETIREES. section 12731 of this title has been credited FAILURE TO PARTICIPATE SATIS- (a) IN GENERAL.—Section 1414 of title 10, by the Secretary concerned with extraor- FACTORILY IN SELECTED RESERVE. United States Code, is amended to read as dinary heroism in the line of duty, the mem- Section 16135 of title 10, United States follows: ber’s retired pay shall be increased by 10 per- Code, is amended by adding at the end the ‘‘§ 1414. Members eligible for retired pay who cent of the amount determined under sub- following new subsection: have service-connected disabilities: pay- section (a). The Secretary’s determination as ‘‘(c)(1) An obligation to pay a refund to the ment of retired pay and veterans’ disability to extraordinary heroism is conclusive for United States under subsection (a)(1)(B) in compensation all purposes.’’; and an amount determined under subsection (b) (3) in subsection (c), as redesignated by ‘‘(a) PAYMENT OF BOTH RETIRED PAY AND is, for all purposes, a debt owed to the United paragraph (1), by striking ‘‘amount com- COMPENSATION.—Except as provided in sub- States. section (b), a member or former member of puted under subsection (a),’’ and inserting ‘‘(2) A discharge in bankruptcy under title the uniformed services who is entitled to re- ‘‘total amount of the monthly retired pay 11 that is entered for a person less than five tired pay (other than as specified in sub- computed under subsections (a) and (b)’’. years after the termination of the person’s FFECTIVE DATE.—The amendments section (c)) and who is also entitled to vet- (b) E enlistment or other service described in sub- made by subsection (a) shall take effect on erans’ disability compensation is entitled to section (a) does not discharge the person October 1, 2002, and shall apply with respect be paid both without regard to sections 5304 from a debt arising under this section with to retired pay for months beginning on or and 5305 of title 38. respect to that enlistment or other service.’’. ‘‘(b) SPECIAL RULE FOR CHAPTER 61 CAREER after that date. SEC. 654. PROHIBITION ON ACCEPTANCE OF RETIREES.—The retired pay of a member re- SEC. 643. EXPANDED SCOPE OF AUTHORITY TO HONORARIA BY PERSONNEL AT CER- tired under chapter 61 of this title with 20 WAIVE TIME LIMITATIONS ON TAIN DEPARTMENT OF DEFENSE years or more of service otherwise creditable CLAIMS FOR MILITARY PERSONNEL SCHOOLS. BENEFITS. under section 1405 of this title at the time of (a) REPEAL OF EXEMPTION.—Section 542 of (a) AUTHORITY.—Section 3702(e)(1) of title the member’s retirement is subject to reduc- the National Defense Authorization Act for 31, United States Code, is amended by strik- tion under sections 5304 and 5305 of title 38, Fiscal Year 1993 (Public Law 102–484; 106 ing ‘‘a claim for pay, allowances, or payment but only to the extent that the amount of Stat. 2413; 10 U.S.C. prec. 2161 note) is re- for unused accrued leave under title 37 or a the member’s retired pay under chapter 61 of pealed. claim for retired pay under title 10’’ and in- (b) EFFECTIVE DATE AND APPLICABILITY.— this title exceeds the amount of retired pay serting ‘‘a claim referred to in subsection The amendment made by subsection (a) shall to which the member would have been enti- (a)(1)(A)’’. take effect on October 1, 2002, and shall apply tled under any other provision of law based (b) APPLICABILITY.—The amendment made with respect to appearances made, speeches upon the member’s service in the uniformed by subsection (a) shall apply with respect to presented, and articles published on or after services if the member had not been retired claims presented to the Secretary of Defense that date. under chapter 61 of this title. under section 3702 of title 31, United States ‘‘(c) EXCEPTION.—Subsection (a) does not SEC. 655. RATE OF EDUCATIONAL ASSISTANCE apply to a member retired under chapter 61 Code, on or after the date of the enactment UNDER MONTGOMERY GI BILL OF of this Act. DEPENDENTS TRANSFERRED ENTI- of this title with less than 20 years of service TLEMENT BY MEMBERS OF THE otherwise creditable under section 1405 of Subtitle E—Other Matters ARMED FORCES WITH CRITICAL this title at the time of the member’s retire- SEC. 651. ADDITIONAL AUTHORITY TO PROVIDE SKILLS. ment. ASSISTANCE FOR FAMILIES OF MEM- (a) CLARIFICATION.—Section 3020(h) of title ‘‘(d) DEFINITIONS.—In this section: BERS OF THE ARMED FORCES. 38, United States Code, is amended— ‘‘(1) The term ‘retired pay’ includes re- (a) AUTHORITY.—(1) Subchapter I of chapter (1) in paragraph (2)— tainer pay, emergency officers’ retirement 88 of title 10, United States Code, is amended (A) by striking ‘‘paragraphs (4) and (5)’’ pay, and naval pension. by adding at the end the following new sec- and inserting ‘‘paragraphs (5) and (6)’’; and ‘‘(2) The term ‘veterans’ disability com- tion: (B) by striking ‘‘and at the same rate’’; pensation’ has the meaning given the term ‘‘§ 1788. Additional family assistance (2) by redesignating paragraphs (3) through ‘compensation’ in section 101(13) of title 38.’’. (6) as paragraphs (4) through (7), respec- (b) REPEAL OF SPECIAL COMPENSATION PRO- ‘‘(a) AUTHORITY.—The Secretary of Defense may provide for the families of members of tively; and GRAM.—Section 1413 of such title is repealed. (3) by inserting after paragraph (2) the fol- (c) CONFORMING AMENDMENT.—Section the armed forces serving on active duty, in addition to any other assistance available lowing new paragraph (3): 641(d) of the National Defense Authorization ‘‘(3)(A) Subject to subparagraph (B), the Act for Fiscal Year 2002 (Public Law 107–107; for such families, any assistance that the Secretary considers appropriate to ensure monthly rate of educational assistance pay- 115 Stat. 1150; 10 U.S.C. 1414 note) is repealed. able to a dependent to whom entitlement is (d) CLERICAL AMENDMENTS.—The table of that the children of such members obtain transferred under this section shall be the sections at the beginning of chapter 71 of needed child care, education, and other monthly amount payable under sections 3015 title 10, United States Code, is amended by youth services. and 3022 of this title to the individual mak- striking the items relating to sections 1413 ‘‘(b) PRIMARY PURPOSE OF ASSISTANCE.— The assistance authorized by this section ing the transfer. and 1414 and inserting the following new ‘‘(B) The monthly rate of assistance pay- should be directed primarily toward pro- item: able to a dependent under subparagraph (A) viding needed family support, including child ‘‘1414. Members eligible for retired pay who shall be subject to the provisions of section care, education, and other youth services, for have service-connected disabil- 3032 of this title, except that the provisions children of members of the Armed Forces ities: payment of retired pay of subsection (a)(1) of that section shall not who are deployed, assigned to duty, or or- and veterans’ disability com- apply even if the individual making the dered to active duty in connection with a pensation.’’. transfer to the dependent under this section contingency operation.’’. (e) EFFECTIVE DATE.—The amendments is on active duty during all or any part of en- (2) The table of sections at the beginning of made by this section shall take effect on— rollment period of the dependent in which such subchapter is amended by adding at the (1) the first day of the first month that be- such entitlement is used.’’. end the following new item: gins after the date of the enactment of this (b) EFFECTIVE DATE.—The amendments Act; or ‘‘1788. Additional family assistance.’’. made by subsection (a) shall take effect as if (2) the first day of the fiscal year that be- (b) EFFECTIVE DATE.—Section 1788 of title included in the enactment of the National gins in the calendar year in which this Act is 10, United States Code, as added by sub- Defense Authorization Act for Fiscal Year enacted, if later than the date specified in section (a), shall take effect on October 1, 2002 (Public Law 107–107), to which such paragraph (1). 2002. amendments relate.

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SEC. 656. PAYMENT OF INTEREST ON STUDENT (i) by striking ‘‘or’’ at the end of subclause ‘‘(j) ARMED FORCES STUDENT LOAN INTER- LOANS. (II); EST PAYMENT PROGRAM.— (a) AUTHORITY.—(1) Chapter 109 of title 10, (ii) by inserting ‘‘or’’ at the end of sub- ‘‘(1) AUTHORITY.—Using funds received by United States Code, is amended by adding at clause (III); and transfer to the Secretary under section 2174 the end the following new section: (iii) by adding at the end the following new of title 10, United States Code, for the pay- ‘‘§ 2174. Interest payment program: members subclause: ment of interest on a loan made under this on active duty ‘‘(IV) is eligible for interest payments to be part to a member of the Armed Forces, the ‘‘(a) AUTHORITY.—(1) The Secretary con- made on such loan for service in the Armed Secretary shall pay the interest on the loan cerned may pay in accordance with this sec- Forces under section 2174 of title 10, United as due for a period not in excess of 36 con- tion the interest and any special allowances States Code, and, pursuant to that eligi- secutive months. The Secretary may not pay that accrue on one or more student loans of bility, the interest is being paid on such loan interest on such a loan out of any funds an eligible member of the armed forces. under subsection (o);’’; other than funds that have been so trans- ‘‘(2) The Secretary of a military depart- (B) in clause (ii)(II) of subparagraph (A), by ferred. ment may exercise the authority under para- inserting ‘‘or (i)(IV)’’ after ‘‘clause (i)(II)’’; ‘‘(2) FORBEARANCE.—During the period in graph (1) only if approved by the Secretary and which the Secretary is making payments on of Defense and subject to such requirements, (C) by striking subparagraph (C) and in- a loan under paragraph (1), the institution of conditions, and restrictions as the Secretary serting the following: higher education shall grant the borrower of Defense may prescribe. ‘‘(C) shall contain provisions that specify forbearance in accordance with subsection ‘‘(b) ELIGIBLE PERSONNEL.—A member of that— (e)(3).’’. the armed forces is eligible for the benefit ‘‘(i) the form of forbearance granted by the (d) EFFECTIVE DATE.—The amendments under subsection (a) while the member— lender pursuant to this paragraph, other made by this section shall apply with respect ‘‘(1) is serving on active duty in fulfillment than subparagraph (A)(i)(IV), shall be tem- to interest, and any special allowance under of the member’s first enlistment in the porary cessation of payments, unless the section 438 of the Higher Education Act of armed forces or, in the case of an officer, is borrower selects forbearance in the form of 1965, that accrue for months beginning on or serving on active duty and has not com- an extension of time for making payments, after October 1, 2003, on student loans de- pleted more than three years of service on or smaller payments than were previously scribed in subsection (c) of section 2174 of scheduled; and active duty; title 10, United States Code (as added by sub- ‘‘(ii) the form of forbearance granted by ‘‘(2) is the debtor on one or more unpaid section (a)), that were made before, on, or the lender pursuant to subparagraph loans described in subsection (c); and after such date to members of the Armed (A)(i)(IV) shall be the temporary cessation of ‘‘(3) is not in default on any such loan. Forces who are on active duty (as defined in all payments on the loan other than pay- ‘‘(c) STUDENT LOANS.—The authority to section 101(d) of title 10, United States Code) make payments under subsection (a) may be ments of interest on the loan, and payments on or after that date. exercised with respect to the following loans: of any special allowance payable with re- SEC. 657. MODIFICATION OF AMOUNT OF BACK ‘‘(1) A loan made, insured, or guaranteed spect to the loan under section 438 of this PAY FOR MEMBERS OF NAVY AND Act, that are made under subsection (o); MARINE CORPS SELECTED FOR PRO- under part B of title IV of the Higher Edu- MOTION WHILE INTERNED AS PRIS- cation Act of 1965 (20 U.S.C. 1071 et seq.). and’’. (2) Section 428 of such Act is further ONERS OF WAR DURING WORLD WAR ‘‘(2) A loan made under part D of such title amended by adding at the end the following II TO TAKE INTO ACCOUNT (20 U.S.C. 1087a et seq.). CHANGES IN CONSUMER PRICE new subsection: INDEX. ‘‘(3) A loan made under part E of such title ‘‘(o) ARMED FORCES STUDENT LOAN INTER- (a) MODIFICATION.—Section 667(c) of the (20 U.S.C. 1087aa et seq.). EST PAYMENT PROGRAM.— ‘‘(d) MAXIMUM BENEFIT.—The months for Floyd D. Spence National Defense Authoriza- ‘‘(1) AUTHORITY.—Using funds received by tion Act for Fiscal Year 2001 (as enacted into which interest and any special allowance transfer to the Secretary under section 2174 law by Public Law 106–398; 114 Stat. 1654A– may be paid on behalf of a member of the of title 10, United States Code, for the pay- 170) is amended by adding at the end the fol- armed forces under this section are any 36 ment of interest and any special allowance consecutive months during which the mem- lowing new paragraph: on a loan to a member of the Armed Forces ‘‘(3) The amount determined for a person ber is eligible under subsection (b). that is made, insured, or guaranteed under ‘‘(e) FUNDS FOR PAYMENTS.—Appropria- under paragraph (1) shall be increased to re- this part, the Secretary shall pay the inter- flect increases in cost of living since the tions available for the pay and allowances of est and special allowance on such loan as due military personnel shall be available for pay- basic pay referred to in paragraph (1)(B) was for a period not in excess of 36 consecutive paid to or for that person, calculated on the ments under this section. months. The Secretary may not pay interest ‘‘(f) COORDINATION.—(1) The Secretary of basis of the Consumer Price Index (all or any special allowance on such a loan out Defense and, with respect to the Coast Guard items—United States city average) published of any funds other than funds that have been when it is not operating as a service in the monthly by the Bureau of Labor Statistics.’’. so transferred. Navy, the Secretary of Transportation shall (b) RECALCULATION OF PREVIOUS PAY- ‘‘(2) FORBEARANCE.—During the period in consult with the Secretary of Education re- MENTS.—In the case of any payment of back which the Secretary is making payments on garding the administration of the authority pay made to or for a person under section 667 a loan under paragraph (1), the lender shall under this section. of the Floyd D. Spence National Defense Au- grant the borrower forbearance in accord- ‘‘(2) The Secretary concerned shall transfer thorization Act for Fiscal Year 2001 before ance with the guaranty agreement under to the Secretary of Education the funds the date of the enactment of this Act, the subsection (c)(3)(A)(i)(IV). necessary— Secretary of the Navy shall— ‘‘(3) SPECIAL ALLOWANCE DEFINED.—For the ‘‘(A) to pay interest and special allowances (1) recalculate the amount of back pay to purposes of this subsection, the term ‘special on student loans under this section (in ac- which the person is entitled by reason of the allowance’, means a special allowance that is cordance with sections 428(o) and 464(j) of the amendment made by subsection (a); and payable with respect to a loan under section Higher Education Act of 1965 (20 U.S.C. (2) if the amount of back pay, as so recal- 438 of this Act.’’. 1078(o) and 1087dd(j)); and culated, exceeds the amount of back pay so (c) FEDERAL PERKINS LOANS.—Section 464 ‘‘(B) to reimburse the Secretary of Edu- paid, pay the person, or the surviving spouse of the Higher Education Act of 1965 (20 U.S.C. of the person, an amount equal to the excess. cation for any reasonable administrative 1087dd) is amended— TITLE VII—HEALTH CARE costs incurred by the Secretary in coordi- (1) in subsection (e)— nating the program under this section with (A) by striking ‘‘or’’ at the end of para- SEC. 701. ELIGIBILITY OF SURVIVING DEPEND- the administration of the student loan pro- ENTS FOR TRICARE DENTAL PRO- graph (1); GRAM BENEFITS AFTER DIS- grams under parts B, D, and E of title IV of (B) by striking the period at the end of the Higher Education Act of 1965. CONTINUANCE OF FORMER ENROLL- paragraph (2) and inserting ‘‘; or’’; and MENT. ‘‘(g) SPECIAL ALLOWANCE DEFINED.—In this (C) by adding at the end the following new Section 1076a(k)(2) of title 10, United section, the term ‘special allowance’ means a paragraph: States Code, is amended by striking ‘‘if the special allowance that is payable under sec- ‘‘(3) the borrower is eligible for interest dependent is enrolled on the date of the tion 438 of the Higher Education Act of 1965 payments to be made on such loan for serv- death of the members in a dental benefits (20 U.S.C. 1087–1).’’. ice in the Armed Forces under section 2174 of plan established under subsection (a)’’ and (2) The table of sections at the beginning of title 10, United States Code, and, pursuant to inserting ‘‘if, on the date of the death of the such chapter is amended by adding at the that eligibility, the interest on such loan is member, the dependent is enrolled in a den- end the following new item: being paid under subsection (j), except that tal benefits plan established under sub- ‘‘2174. Interest payment program: members the form of a forbearance under this para- section (a) or is not enrolled in such a plan on active duty.’’. graph shall be a temporary cessation of all by reason of a discontinuance of a former en- (b) FEDERAL FAMILY EDUCATION LOANS AND payments on the loan other than payments rollment under subsection (f)’’. DIRECT LOANS.—(1) Subsection (c)(3) of sec- of interest on the loan that are made under SEC. 702. ADVANCE AUTHORIZATION FOR INPA- tion 428 of the Higher Education Act of 1965 subsection (j).’’; and TIENT MENTAL HEALTH SERVICES. (20 U.S.C. 1078) is amended— (2) by adding at the end the following new Section 1079(i)(3) of title 10, United States (A) in clause (i) of subparagraph (A)— subsection: Code, is amended—

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(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; claims for reimbursement for those items FAIRS.—A covered beneficiary who is enrolled (2) by striking ‘‘Except in the case of an and services under title XVIII of the Social in and seeks care under the TRICARE pro- emergency,’’ and inserting ‘‘Except as pro- Security Act (42 U.S.C. 1395 et seq.).’’. gram may not be denied such care on the vided in subparagraphs (B) and (C),’’; and (b) APPLICABILITY.—The Secretary of De- ground that the covered beneficiary is re- (3) by adding at the end the following new fense, in consultation with the other admin- ceiving health care from the Department of subparagraph: istering Secretaries referred to in section Veterans Affairs on an ongoing basis if the ‘‘(B) Preadmission authorization for inpa- 1072(3) of title 10, United States Code, shall Department of Veterans Affairs cannot pro- tient mental health services is not required apply the limitations required under sub- vide the covered beneficiary with the par- under subparagraph (A) in the case of an section (d) of section 1095c of such title (as ticular care sought by the covered bene- emergency. added by subsection (a)) with respect to con- ficiary within the maximum period provided ‘‘(C) Preadmission authorization for inpa- tracts entered into under the TRICARE pro- in the access to care standards that are ap- tient mental health services is not required gram on or after October 1, 2002. plicable to that particular care under under subparagraph (A) in a case in which SEC. 706. DEPARTMENT OF DEFENSE MEDICARE- TRICARE program policy.’’. any benefits are payable for such services ELIGIBLE RETIREE HEALTH CARE TITLE VIII—ACQUISITION POLICY, ACQUI- under part A of title XVIII of the Social Se- FUND. SITION MANAGEMENT, AND RELATED curity Act (42 U.S.C. 1395c et seq.). The Sec- (a) SOURCE OF FUNDS FOR MONTHLY AC- MATTERS retary shall require, however, advance au- CRUAL PAYMENTS INTO THE FUND.—Section thorization for the continued provision of 1116(c) of title 10, United States Code, is Subtitle A—Major Defense Acquisition the inpatient mental health services after amended by striking ‘‘health care programs’’ Programs benefits cease to be payable for such services and inserting ‘‘pay of members’’. SEC. 801. BUY-TO-BUDGET ACQUISITION OF END under part A of such title in such case.’’. (b) MANDATORY PARTICIPATION OF OTHER ITEMS. SEC. 703. CONTINUED TRICARE ELIGIBILITY OF UNIFORMED SERVICES.—Section 1111(c) of (a) AUTHORITY.—(1) Chapter 131 of title 10, DEPENDENTS RESIDING AT REMOTE such title is amended— United States Code, is amended by adding at LOCATIONS AFTER DEPARTURE OF (1) in the first sentence, by striking ‘‘may the end the following new section: SPONSORS FOR UNACCOMPANIED enter into an agreement with any other ad- ‘‘§ 2228. Buy-to-budget acquisition: end items ASSIGNMENTS. ministering Secretary’’ and inserting ‘‘shall ‘‘(a) AUTHORITY TO ACQUIRE ADDITIONAL Section 1079(p) of title 10, United States enter into an agreement with each other ad- END ITEMS.—Using funds available to the De- Code, is amended— ministering Secretary’’; and partment of Defense for the acquisition of an (1) in paragraph (1), by striking ‘‘depend- (2) in the second sentence, by striking end item, the head of agency making the ac- ents referred to in subsection (a) of a mem- ‘‘Any such’’ and inserting ‘‘The’’. ber of the uniformed services referred to in quisition may acquire a higher quantity of SEC. 707. TECHNICAL CORRECTIONS RELATING the end item than the quantity specified for section 1074(c)(3) of this title who are resid- TO TRANSITIONAL HEALTH CARE ing with the member’’ and inserting ‘‘de- FOR MEMBERS SEPARATED FROM the end item in a law providing for the fund- pendents described in paragraph (3)’’; ACTIVE DUTY. ing of that acquisition if that head of an (2) by redesignating paragraph (3) as para- (a) CONTINUED APPLICABILITY TO DEPEND- agency makes each of the following findings: graph (4); and ENTS.—Subsection (a)(1) of section 736 of the ‘‘(1) The agency has an established require- (3) by inserting after paragraph (2), the fol- National Defense Authorization Act for Fis- ment for the end item that is expected to re- lowing new paragraph (3): cal Year 2002 (Public Law 107–107; 115 Stat. main substantially unchanged throughout ‘‘(3) This subsection applies with respect to 1172) is amended to read as follows: the period of the acquisition. a dependent referred to in subsection (a) ‘‘(1) in paragraph (1), by striking ‘para- ‘‘(2) It is possible to acquire the higher who— graph (2), a member’ and all that follows quantity of the end item without additional ‘‘(A) is a dependent of a member of the uni- through ‘of the member),’ and inserting funding because of production efficiencies or formed services referred to in section ‘paragraph (3), a member of the armed forces other cost reductions. 1074(c)(3) of this title and is residing with the who is separated from active duty as de- ‘‘(3) The amount of the funds used for the member; or scribed in paragraph (2) (and the dependents acquisition of the higher quantity of the end ‘‘(B) is a dependent of a member who, after of the member)’;’’. item will not exceed the amount provided having served in a duty assignment described (b) CLARIFICATION REGARDING THE COAST under that law for the acquisition of the end in section 1074(c)(3) of this title, has relo- GUARD.—Subsection (b)(2) of such section is item. cated without the dependent pursuant to or- amended to read as follows: ‘‘(4) The amount so provided is sufficient ders for a permanent change of duty station ‘‘(2) in subsection (e)— to ensure that each unit of the end item ac- from a remote location described in subpara- ‘‘(A) by striking the first sentence; and quired within the higher quantity is fully graph (B)(ii) of such section where the mem- ‘‘(B) by striking ‘the Coast Guard’ in the funded as a complete end item. ber and the dependent resided together while second sentence and inserting ‘the members ‘‘(b) REGULATIONS.—The Secretary of De- the member served in such assignment, if the of the Coast Guard and their dependents’.’’. fense shall prescribe regulations for the ad- orders do not authorize dependents to ac- (c) EFFECTIVE DATE.—The amendments ministration of this section. The regulations company the member to the new duty sta- made by this section shall take effect as of shall include, at a minimum, the following: tion at the expense of the United States and December 28, 2001, and as if included in the ‘‘(1) The level of approval within the De- the dependent continues to reside at the National Defense Authorization Act for Fis- partment of Defense that is required for a de- same remote location.’’. cal Year 2002 as enacted. cision to acquire a higher quantity of an end SEC. 704. APPROVAL OF MEDICARE PROVIDERS SEC. 708. EXTENSION OF TEMPORARY AUTHOR- item under subsection (a). AS TRICARE PROVIDERS. ITY FOR ENTERING INTO PERSONAL ‘‘(2) Authority to exceed by up to 10 per- Section 1079 of title 10, United States Code, SERVICES CONTRACTS FOR THE cent the quantity of an end item approved in is amended by adding at the end the fol- PERFORMANCE OF HEALTH CARE a justification and approval of the use of pro- lowing new subsection: RESPONSIBILITIES FOR THE ARMED cedures other than competitive procedures ‘‘(q) A physician or other health care prac- FORCES AT LOCATIONS OTHER for the acquisition of the end item under sec- titioner who is eligible to receive reimburse- THAN MILITARY MEDICAL TREAT- tion 2304 of this title, but only to the extent MENT FACILITIES. ment for services provided under the Medi- necessary to acquire a quantity of the end Section 1091(a)(2) of title 10, United States care Program under title XVIII of the Social item permitted in the exercise of authority Code, is amended by striking ‘‘December 31, Security Act (42 U.S.C. 1395 et seq.) shall be under subsection (a). 2002’’ and inserting ‘‘December 31, 2003’’. considered approved to provide medical care ‘‘(c) NOTIFICATION OF CONGRESS.—The head under this section and section 1086 of this SEC. 709. RESTORATION OF PREVIOUS POLICY of an agency is not required to notify Con- title.’’. REGARDING RESTRICTIONS ON USE gress in advance regarding a decision under OF DEPARTMENT OF DEFENSE MED- SEC. 705. CLAIMS INFORMATION. ICAL FACILITIES. the authority of this section to acquire a (a) CORRESPONDENCE TO MEDICARE CLAIMS Section 1093 of title 10, United States Code, higher quantity of an end item than is speci- INFORMATION REQUIREMENTS.—Section 1095c is amended— fied in a law described in subsection (a), but of title 10, United States Code, is amended by (1) by striking subsection (b); and shall notify the congressional defense com- adding at the end the following new sub- (2) in subsection (a), by striking ‘‘RESTRIC- mittees of the decision not later than 30 days section: TION ON USE OF FUNDS.—’’. after the date of the decision. ‘‘(d) CORRESPONDENCE TO MEDICARE CLAIMS ‘‘(d) WAIVER BY OTHER LAW.—A provision SEC. 710. HEALTH CARE UNDER TRICARE FOR INFORMATION REQUIREMENTS.—The Secretary TRICARE BENEFICIARIES RECEIV- of law may not be construed as prohibiting of Defense, in consultation with the other ING MEDICAL CARE AS VETERANS the acquisition of a higher quantity of an administering Secretaries, shall limit the re- FROM THE DEPARTMENT OF VET- end item under this section unless that pro- quirements for information in support of ERANS AFFAIRS. vision of law— claims for payment for health care items and Section 1097 of title 10, United States Code, ‘‘(1) specifically refers to this section; and services provided under the TRICARE pro- is amended by adding at the end the fol- ‘‘(2) specifically states that the acquisition gram so that the information required under lowing new subsection: of the higher quantity of the end item is pro- the program is substantially the same as the ‘‘(f) PERSONS RECEIVING MEDICAL CARE hibited notwithstanding the authority pro- information that would be required for FROM THE DEPARTMENT OF VETERANS AF- vided in this section.

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‘‘(e) DEFINITIONS.—(1) For the purposes of (1) The term ‘‘incremental acquisition pro- (C) optimize total system performance and this section, a quantity of an end item shall gram’’ means an acquisition program that is minimize total ownership costs by giving ap- be considered specified in a law if the quan- to be conducted in discrete phases or blocks, propriate consideration to— tity is specified either in a provision of that with each phase or block consisting of the (i) logistics planning; law or in any related representation that is planned production and acquisition of one or (ii) manpower, personnel, and training; set forth separately in a table, chart, or ex- more units of a major system. (iii) human, environmental, safety, occupa- planatory text included in a joint explana- (2) The term ‘‘increment’’ refers to one of tional health, accessibility, survivability, tory statement or governing committee re- the discrete phases or blocks of an incre- operational continuity, and security factors; port accompanying the law. mental acquisition program. (iv) protection of critical program informa- ‘‘(2) In this section: (3) The term ‘‘major system’’ has the tion; and ‘‘(A) The term ‘congressional defense com- meaning given such term in section 2302(5) of (v) spectrum management. mittees’ means— title 10, United States Code. (4) A process for independent validation of ‘‘(i) the Committee on Armed Services and SEC. 803. PILOT PROGRAM FOR SPIRAL DEVEL- the satisfaction of exit criteria and other rel- the Committee on Appropriations of the Sen- OPMENT OF MAJOR SYSTEMS. evant requirements. ate; and (a) AUTHORITY.—The Secretary of Defense (5) A process for operational testing of ‘‘(ii) the Committee on Armed Services and is authorized to conduct a pilot program for fieldable prototypes to be conducted before the Committee on Appropriations of the the spiral development of major systems and or in conjunction with the fielding of the House of Representatives. to designate research and development pro- prototypes. ‘‘(B) The term ‘head of an agency’ means grams of the military departments and De- (e) REPORTING REQUIREMENT.—The Sec- the Secretary of Defense, the Secretary of fense Agencies to participate in the pilot retary shall submit to Congress at the end of the Army, the Secretary of the Navy, and program. each quarter of a fiscal year a status report on each research and development program the Secretary of the Air Force.’’. (b) DESIGNATION OF PARTICIPATING PRO- that is a participant in the pilot program. (2) The table of sections at the beginning of GRAMS.—(1) A research and development pro- such chapter is amended by adding at the gram for a major system of a military de- The report shall contain information on unit costs that is similar to the information on end the following new item: partment or Defense Agency may be con- unit costs under major defense acquisition ‘‘2228. Buy-to-budget acquisition: end ducted as a spiral development program only programs that is required to be provided to if the Secretary of Defense approves a spiral items.’’. Congress under chapter 144 of title 10, United development plan submitted by the Sec- (b) TIME FOR ISSUANCE OF FINAL REGULA- States Code, except that the information on TIONS.—The Secretary of Defense shall issue retary of that military department or head unit costs shall address projected prototype the final regulations under section 2228(b) of of that Defense Agency, as the case may be, costs instead of production costs. title 10, United States Code (as added by sub- and designates the program as a participant (f) APPLICABILITY OF EXISTING LAW.—Noth- section (a)), not later than 120 days after the in the pilot program under this section. ing in this section shall be construed to ex- date of the enactment of this Act. (2) The Secretary of Defense shall submit a empt any program of the Department of De- SEC. 802. REPORT TO CONGRESS ON INCRE- copy of each spiral development plan ap- fense from the application of any provision MENTAL ACQUISITION OF MAJOR proved under this section to the congres- of chapter 144 of title 10, United States Code, SYSTEMS. sional defense committees. section 139, 181, 2366, 2399, or 2400 of such (a) REPORT REQUIRED.—Not later than 120 (c) SPIRAL DEVELOPMENT PLANS.—A spiral title, or any requirement under Department days after the date of the enactment of this development plan for a participating proof Defense Directive 5000.1, Department of Act, the Secretary of Defense shall submit to gram shall, at a minimum, include the fol- Defense Instruction 5000.2, or Chairman of the congressional defense committees a re- lowing matters: the Joint Chiefs of Staff Instruction 3170.01B port on the approach that the Secretary (1) A rationale for dividing the program in accordance with the terms of such provi- plans to take to applying the requirements into separate spirals, together with a pre- sion or requirement. of chapter 144 of title 10, United States Code, liminary identification of the spirals to be (g) TERMINATION OF PROGRAM PARTICIPA- sections 139, 181, 2366, 2399, and 2400 of such included. TION.—The conduct of a participating pro- title, Department of Defense Directive 5000.1, (2) A program strategy, including overall gram as a spiral development program under Department of Defense Instruction 5000.2, cost, schedule, and performance goals for the the pilot program shall terminate when the and Chairman of the Joint Chiefs of Staff In- total program. decision is made for the participating pro- struction 3170.01B, and other provisions of (3) Specific cost, schedule, and perform- gram to proceed into the production of units law and regulations applicable to incre- ance parameters, including measurable exit in excess of the number of prototype units mental acquisition programs. criteria, for the first spiral to be conducted. permitted under the limitation provided in (b) CONTENT OF REPORT.—The report shall, (4) A testing plan to ensure that perform- spiral development plan for the program pur- at a minimum, address the following mat- ance goals, parameters, and exit criteria are suant to subsection (c)(5). (h) TERMINATION OF PILOT PROGRAM.—(1) ters: met. The authority to conduct a pilot program (1) The manner in which the Secretary (5) An appropriate limitation on the num- under this section shall terminate three plans to establish and approve, for each in- ber of prototype units that may be produced years after the date of the enactment of this crement of an incremental acquisition under the program. Act. program— (6) Specific performance parameters, in- (2) The termination of the pilot program (A) operational requirements; and cluding measurable exit criteria, that must shall not terminate the authority of the Sec- (B) cost and schedule goals. be met before the program proceeds into pro- retary of a military department or head of a (2) The manner in which the Secretary duction of units in excess of the limitation Defense Agency to continue to conduct, as a plans, for each increment of an incremental on the number of prototype units. spiral development program, any research acquisition program— (d) GUIDANCE.—Not later than 120 days and development program that was des- (A) to meet requirements for operational after the date of the enactment of this Act, ignated to participate in the pilot program testing and live fire testing; the Secretary of Defense shall issue guidance before the date on which the pilot program (B) to monitor cost and schedule perform- for the implementation of the spiral develop- terminates. In the continued conduct of such ance; and ment pilot program authorized by this sec- a research and development program as a (C) to comply with laws requiring reports tion. The guidance shall, at a minimum, in- spiral development program on and after to Congress on results testing and on cost clude the following matters: such date, the spiral development plan ap- and schedule performance. (1) A process for the development, review, proved for the program, the guidance issued (3) The manner in which the Secretary and approval of each spiral development plan under subsection (d), and subsections (e), (f), plans to ensure that each increment of an in- submitted by the Secretary of a military de- and (g) shall continue to apply. cremental acquisition program is designed— partment or head of a Defense Agency. (i) DEFINITIONS.—In this section: (A) to achieve interoperability within and (2) A process for establishing and approv- (1) The term ‘‘spiral development pro- among United States forces and United ing specific cost, schedule, and performance gram’’ means a research and development States coalition partners; and parameters, including measurable exit cri- program that— (B) to optimize total system performance teria, for spirals to be conducted after the (A) is conducted in discrete phases or and minimize total ownership costs by giv- first spiral. blocks, each of which will result in the devel- ing appropriate consideration to— (3) Appropriate planning, testing, report- opment of fieldable prototypes; and (i) logistics planning; ing, oversight, and other requirements to en- (B) will not proceed into acquisition until (ii) manpower, personnel, and training; sure that the spiral development program— specific performance parameters, including (iii) human, environmental, safety, occupa- (A) satisfies realistic and clearly-defined measurable exit criteria, have been met. tional health, accessibility, survivability, performance standards, cost objectives, and (2) The term ‘‘spiral’’ means one of the dis- operational continuity, and security factors; schedule parameters (including measurable crete phases or blocks of a spiral develop- (iv) protection of critical program informa- exit criteria for each spiral); ment program. tion; and (B) achieve interoperability within and (3) The term ‘‘major system’’ has the (v) spectrum management. among United States forces and United meaning given such term in section 2302(5) of (c) DEFINITIONS.—In this section: States coalition partners; and title 10, United States Code.

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 S6392 CONGRESSIONAL RECORD — SENATE July 8, 2002 (4) The term ‘‘participating program’’ ‘‘(1) The Secretary of Defense may waive partment of Defense under multiple award means a research and development program the application of the survivability and contracts in the fiscal year preceding the fis- that is designated to participate in the pilot lethality tests of this section to a covered cal year in which the report is required to be program under subsection (b). system, munitions program, missile pro- submitted, information (determined using SEC. 804. IMPROVEMENT OF SOFTWARE ACQUISI- gram, or covered product improvement pro- the data collection system established under TION PROCESSES. gram if the Secretary determines that live- section 2330a of title 10, United States Code) (a) ESTABLISHMENT OF PROGRAMS.—(1) The fire testing of such system or program would as follows: Secretary of each military department shall be unreasonably expensive and impractical ‘‘(A) The percentage (calculated on the establish a program to improve the software and submits a certification of that deter- basis of dollar value) of such purchases that acquisition processes of that military de- mination to Congress— are purchases that were made on a competi- partment. ‘‘(A) before Milestone B approval for the tive basis and involved receipt of two or (2) The head of each Defense Agency that system or program; or more offers from qualified contractors. manages a major defense acquisition pro- ‘‘(B) in the case of a system or program ‘‘(B) The percentage (calculated on the gram with a substantial software component initiated at— basis of dollar value) of such purchases that shall establish a program to improve the ‘‘(i) Milestone B, as soon as is practicable are performance-based purchases specifying software acquisition processes of that De- after the Milestone B approval; or firm fixed prices for the specific tasks to be fense Agency. ‘‘(ii) Milestone C, as soon as is practicable performed.’’. (3) The programs required by this sub- after the Milestone C approval.’’. (c) DEFINITIONS.—Such section is further section shall be established not later than (b) DEFINITIONS.—Subsection (e) of such amended by adding at the end the following 120 days after the date of the enactment of section is amended by adding at the end the new subsection: this Act. following new paragraphs: ‘‘(c) DEFINITIONS.—In this section: (b) PROGRAM REQUIREMENTS.—A program ‘‘(8) The term ‘Milestone B approval’ ‘‘(1) The term ‘individual purchase’ means to improve software acquisition processes means a decision to enter into system devel- a task order, delivery order, or other purchase. under this section shall, at a minimum, in- opment and demonstration pursuant to guid- ‘‘(2) The term ‘multiple award contract’ clude the following: ance prescribed by the Secretary of Defense means— (1) A documented process for software ac- for the management of Department of De- ‘‘(A) a contract that is entered into by the quisition planning, requirements develop- fense acquisition programs. Administrator of General Services under the ment and management, project management ‘‘(9) The term ‘Milestone C approval’ multiple award schedule program referred to and oversight, and risk management. means a decision to enter into production in section 2302(2)(C) of title 10, United States (2) Efforts to develop systems for perform- and deployment pursuant to guidance pre- Code; ance measurement and continual process im- scribed by the Secretary of Defense for the ‘‘(B) a multiple award task order contract provement. management of Department of Defense ac- that is entered into under the authority of (3) A system for ensuring that each pro- quisition programs.’’. gram office with substantial software re- sections 2304a through 2304d of title 10, Subtitle B—Procurement Policy sponsibilities implements and adheres to es- United States Code, or sections 303H through Improvements tablished processes and requirements. 303K of the Federal Property and Adminis- (c) DEPARTMENT OF DEFENSE GUIDANCE.— SEC. 811. PERFORMANCE GOALS FOR CON- trative Services Act of 1949 (41 U.S.C. 253h The Assistant Secretary of Defense for Com- TRACTING FOR SERVICES. through 253k); and mand, Control, Communications, and Intel- (a) INDIVIDUAL PURCHASES OF SERVICES.— ‘‘(C) any other indefinite delivery, indefi- ligence, in consultation with the Under Sec- Subsection (a) of section 802 of the National nite quantity contract that is entered into retary of Defense for Acquisition, Tech- Defense Authorization Act for Fiscal Year by the head of a Federal agency with two or nology, and Logistics, shall— 2002 (Public Law 107–107; 10 U.S.C. 2330 note) more sources pursuant to the same solicita- (1) prescribe uniformly applicable guidance is amended by adding at the end the fol- tion.’’. for the administration of all of the programs lowing new paragraphs: SEC. 812. GRANTS OF EXCEPTIONS TO COST OR established under subsection (a) and take ‘‘(3) To support the attainment of the goals PRICING DATA CERTIFICATION RE- such actions as are necessary to ensure that established in paragraph (2), the Department QUIREMENTS AND WAIVERS OF the military departments and Defense Agen- of Defense shall have the following goals: COST ACCOUNTING STANDARDS. (a) GUIDANCE FOR EXCEPTIONS IN EXCEP- cies comply with the guidance; and ‘‘(A) To increase, as a percentage of all of TIONAL CIRCUMSTANCES.—(1) Not later than 60 (2) assist the Secretaries of the military the individual purchases of services made by days after the date of the enactment of this departments and the heads of the Defense or for the Department of Defense under mul- Act, the Secretary of Defense shall issue Agencies to carry out such programs effec- tiple award contracts for a fiscal year (cal- guidance on the circumstances under which tively by identifying, and serving as a clear- culated on the basis of dollar value), the volume of the individual purchases of services it is appropriate to grant— inghouse for information regarding, best (A) an exception pursuant to section practices in software acquisition processes in that are made on a competitive basis and involve the receipt of two or more offers from 2306a(b)(1)(C) of title 10, United States Code, both the public and private sectors. relating to submittal of certified contract (d) DEFINITIONS.—In this section: qualified contractors to a percentage as fol- cost and pricing data; or (1) The term ‘‘Defense Agency’’ has the lows: (B) a waiver pursuant to section 26(f)(5)(B) meaning given the term in section 101(a)(11) ‘‘(i) For fiscal year 2003, a percentage not of the Office of Federal Procurement Policy of title 10, United States Code. less than 50 percent. Act (41 U.S.C. 422(f)(5)(B)), relating to the ap- (2) The term ‘‘major defense acquisition ‘‘(ii) For fiscal year 2004, a percentage not plicability of cost accounting standards to program’’ has the meaning given the term in less than 60 percent. ‘‘(iii) For fiscal year 2011, a percentage not contracts and subcontracts. section 2430 of title 10, United States Code. (2) The guidance shall, at a minimum, in- SEC. 805. INDEPENDENT TECHNOLOGY READI- less than 80 percent. ‘‘(B) To increase, as a percentage of all of clude a limitation that a grant of an excep- NESS ASSESSMENTS. tion or waiver referred to in paragraph (1) is Section 804(b) of the National Defense Au- the individual purchases of services made by or for the Department of Defense under mul- appropriate with respect to a contract or thorization Act for Fiscal Year 2002 (Public subcontract, or (in the case of submittal of tiple award contracts for a fiscal year (cal- Law 107–107; 115 Stat. 1180) is amended— certified cost and pricing data) a modifica- culated on the basis of dollar value), the use (1) by striking ‘‘and’’ at the end of para- tion, only upon a determination that the of performance-based purchasing specifying graph (1); property or services cannot be obtained firm fixed prices for the specific tasks to be (2) by striking the period at the end of under the contract, subcontract, or modifica- paragraph (2) and inserting ‘‘; and’’; and performed to a percentage as follows: tion, as the case may be, without the grant (3) by adding at the end the following new ‘‘(i) For fiscal year 2003, a percentage not of the exception or waiver. paragraph: less than 30 percent. (b) SEMIANNUAL REPORT.—(1) The Sec- ‘‘(3) identify each case in which an authori- ‘‘(ii) For fiscal year 2004, a percentage not retary of Defense shall transmit to the con- tative decision has been made within the De- less than 40 percent. gressional defense committees promptly partment of Defense not to conduct an inde- ‘‘(iii) For fiscal year 2005, a percentage not after the end of each half of a fiscal year a pendent technology readiness assessment for less than 50 percent. report on the exceptions to cost or pricing a critical technology on a major defense ac- ‘‘(iv) For fiscal year 2011, a percentage not data certification requirements and the quisition program and explain the reasons less than 80 percent.’’. waivers of applicability of cost accounting for the decision.’’. (b) EXTENSION AND REVISION OF REPORTING standards that, in cases described in para- SEC. 806. TIMING OF CERTIFICATION IN CONNEC- REQUIREMENT.—Subsection (b) of such sec- graph (2), were granted during that half of TION WITH WAIVER OF SURVIV- tion is amended— the fiscal year. ABILITY AND LETHALITY TESTING (1) by striking ‘‘March 1, 2006’’, and insert- (2) The report for a half of a fiscal year REQUIREMENTS. ing ‘‘March 1, 2011’’; and shall include an explanation of— (a) CERTIFICATION FOR EXPEDITED PRO- (2) by adding at the end the following new (A) each decision by the head of a pro- GRAMS.—Paragraph (1) of subsection (c) of paragraphs: curing activity within the Department of De- section 2366 of title 10, United States Code, is ‘‘(6) Regarding the individual purchases of fense to exercise the authority under sub- amended to read as follows: services that were made by or for the De- paragraph (B) or (C) of subsection (b)(1) of

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6393 section 2306a of title 10, United States Code, SEC. 814. INTERNAL CONTROLS ON THE USE OF SEC. 816. PILOT PROGRAM FOR TRANSITION TO to grant an exception to the requirements of PURCHASE CARDS. FOLLOW-ON CONTRACTS FOR CER- such section in the case of a contract, sub- (a) REQUIREMENT FOR ENHANCED INTERNAL TAIN PROTOTYPE PROJECTS. contract, or contract or subcontract modi- CONTROLS.—Not later than 120 days after the Section 845 of the National Defense Au- fication that is expected to have a price of date of the enactment of this Act, the Sec- thorization Act for Fiscal Year 1994 (10 $15,000,000 or more; and retary of Defense shall take action to ensure U.S.C. 2371 note) is amended by— (B) each decision by the Secretary of De- that appropriate internal controls for the (1) redesignating subsections (e), (f), and fense or the head of an agency within the De- use of purchase cards issued by the Federal (g) as subsections (f), (g), and (h), respec- partment of Defense to exercise the author- Government to Department of Defense per- tively; and ity under subsection (f)(5)(B) of section 26 of sonnel are in place throughout the Depart- (2) inserting after subsection (d) the fol- the Office of Federal Procurement Policy ment of Defense. At a minimum, the internal lowing new subsection (e): Act to waive the applicability of the cost ac- controls shall include the following: ‘‘(e) PILOT PROGRAM FOR TRANSITION TO counting standards under such section in the (1) A requirement that the receipt and ac- FOLLOW-ON CONTRACTS.—(1) The Secretary of case of a contract or subcontract that is ex- ceptance, and the documentation of the re- Defense is authorized to carry out a pilot pected to have a value of $15,000,000 or more. ceipt and acceptance, of the property or serv- program for follow-on contracting for the (c) ADVANCE NOTIFICATION OF CONGRESS.— ices purchased on a purchase card be verified production of items or processes that are de- (1) The Secretary of Defense shall transmit by a Department of Defense official who is veloped by nontraditional defense contrac- to the congressional defense committees an independent of the purchaser. tors under prototype projects carried out advance notification of— (2) A requirement that the monthly pur- under this section. (A) any decision by the head of a procuring chase card statements of purchases on a pur- ‘‘(2) Under the pilot program— activity within the Department of Defense to chase card be reviewed and certified for ac- ‘‘(A) a qualifying contract for the procure- exercise the authority under subsection curacy by an official of the Department of ment of such an item or process, or a quali- (b)(1)(C) of section 2306a of title 10, United Defense who is independent of the purchaser. fying subcontract under a contract for the States Code, to grant an exception to the re- (3) Specific policies limiting the number of procurement of such an item or process, may quirements of such section in the case of a purchase cards issued, with the objective of be treated as a contract or subcontract, re- contract, subcontract, or contract or sub- significantly reducing the number of card- spectively, for the procurement of commer- contract modification that is expected to holders. cial items, as defined in section 4(12) of the have a price of $75,000,000 or more; or (4) Specific policies on credit limits au- Office of Federal Procurement Policy Act (41 (B) any decision by the Secretary of De- thorized for cardholders, with the objective U.S.C. 403(12)); and fense or the head of an agency within the De- of minimizing financial risk to the Federal ‘‘(B) the item or process may be treated as partment of Defense to exercise the author- Government. an item or process, respectively, that is de- ity under subsection (f)(5)(B) of section 26 of (5) Specific criteria for identifying employ- veloped in part with Federal funds and in the Office of Federal Procurement Policy ees eligible to be issued purchase cards, with part at private expense for the purposes of Act to waive the applicability of the cost ac- the objective of ensuring the integrity of section 2320 of title 10, United States Code. counting standards under such section to a cardholders. ‘‘(3) For the purposes of the pilot program, contract or subcontract that is expected to (6) Accounting procedures that ensure that a qualifying contract or subcontract is a have a value of $75,000,000 or more. purchase card transactions are properly re- contract or subcontract, respectively, with a (2) The notification under paragraph (1) recorded in Department of Defense accounting nontraditional defense contractor that— garding a decision to grant an exception or records. ‘‘(A) does not exceed $20,000,000; and waiver shall be transmitted not later than 10 (7) Requirements for regular internal re- ‘‘(B) is either— days before the exception or waiver is grant- view of purchase card statements to ‘‘(i) a firm, fixed-price contract or sub- ed. identify— contract; or ‘‘(ii) a fixed-price contract or subcontract (d) CONTENTS OF REPORTS AND NOTIFICA- (A) potentially fraudulent, improper, and with economic price adjustment. TIONS.—A report pursuant to subsection (b) abusive purchases; and a notification pursuant to subsection (c) (B) any patterns of improper cardholder ‘‘(4) The authority to conduct a pilot pro- shall include, for each grant of an exception transactions, such as purchases of prohibited gram under this subsection shall terminate or waiver, the following matters: items; and on September 30, 2005. The termination of (1) A discussion of the justification for the (C) categories of purchases that should be the authority shall not affect the validity of grant of the exception or waiver, including made through other mechanisms to better contracts or subcontracts that are awarded at a minimum— aggregate purchases and negotiate lower or modified during the period of the pilot (A) in the case of an exception granted pur- prices. program, without regard to whether the con- suant to section 2306a(b)(1)(B) of title 10, (b) TRAINING.—The Secretary of Defense tracts or subcontracts are performed during United States Code, an explanation of the shall ensure that all Department of Defense the period.’’. basis for the determination that the prod- purchase cardholders are aware of the en- SEC. 817. WAIVER AUTHORITY FOR DOMESTIC ucts or services to be purchased are commer- hanced internal controls instituted pursuant SOURCE OR CONTENT REQUIRE- MENTS. cial items; and to subsection (a). (a) AUTHORITY.—Subchapter V of chapter (B) in the case of an exception granted pur- (c) COMPTROLLER GENERAL REVIEW.—Not 148 of title 10, United States Code, is amend- suant to section 2306a(b)(1)(C) of such title, later than March 1, 2003, the Comptroller ed by adding at the end the following new or a waiver granted pursuant to section General shall— section: 26(f)(5)(B) of the Office of Federal Procure- (1) review the actions that have been taken ment Policy Act, an explanation of the basis within the Department of Defense to comply ‘‘§ 2539c. Waiver of domestic source or con- for the determination that it would not have with the requirements of this section; and tent requirements been possible to obtain the products or serv- (2) submit a report on the actions reviewed ‘‘(a) AUTHORITY.—Except as provided in ices from the offeror without the grant of to the congressional defense committees. subsection (f), the Secretary of Defense may the exception or waiver. SEC. 815. ASSESSMENT REGARDING FEES PAID waive the application of any domestic source (2) A description of the specific steps taken FOR ACQUISITIONS UNDER OTHER requirement or domestic content require- or to be taken within the Department of De- AGENCIES’ CONTRACTS. ment referred to in subsection (b) and there- fense to ensure that the price of each con- (a) REQUIREMENT FOR ASSESSMENT AND RE- by authorize the procurement of items that tract, subcontract, or modification covered PORT.—Not later than March 1, 2003, the Sec- are grown, reprocessed, reused, produced, or by the report or notification, as the case retary of Defense shall carry out an assess- manufactured— may be, is fair and reasonable. ment to determine the total amount paid by ‘‘(1) in a foreign country that has a recip- (e) EFFECTIVE DATE.—The requirements of the Department of Defense as fees for the ac- rocal defense procurement memorandum of this section shall apply to each exception or quisition of property and services by the De- understanding or agreement with the United waiver that is granted under a provision of partment of Defense under contracts be- States; law referred to in subsection (a) on or after tween other departments and agencies of the ‘‘(2) in a foreign country that has a recip- the date on which the guidance required by Federal Government and the sources of the rocal defense procurement memorandum of that subsection (a) is issued. property and services in each of fiscal years understanding or agreement with the United SEC. 813. EXTENSION OF REQUIREMENT FOR AN- 2000, 2001, and 2002, and submit a report on States substantially from components and NUAL REPORT ON DEFENSE COM- the results of the assessment to Congress. materials grown, reprocessed, reused, pro- MERCIAL PRICING MANAGEMENT (b) CONTENT OF REPORT.—The report shall duced, or manufactured in the United States IMPROVEMENT. include the Secretary’s views on what, if or any foreign country that has a reciprocal Section 803(c)(4) of the Strom Thurmond any, actions should be taken within the De- defense procurement memorandum of under- National Defense Authorization Act for Fis- partment of Defense to reduce the total standing or agreement with the United cal Year 1999 (Public Law 105–261; 112 Stat. amount of the annual expenditures on fees States; or 2082; 10 U.S.C. 2306a note) is amended by described in subsection (a) and to use the ‘‘(3) in the United States substantially striking ‘‘2000, 2001, and 2002,’’ and inserting amounts saved for other authorized pur- from components and materials grown, re- ‘‘2000 through 2006,’’. poses. processed, reused, produced, or manufactured

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 S6394 CONGRESSIONAL RECORD — SENATE July 8, 2002 in the United States or any foreign country Subtitle C—Other Matters (2) Section 5312(e) (110 Stat. 695; 40 U.S.C. that has a reciprocal defense procurement SEC. 821. EXTENSION OF THE APPLICABILITY OF 1492), relating to Comptroller General moni- memorandum of understanding or agreement CERTAIN PERSONNEL DEMONSTRA- toring of a pilot program for solutions-based with the United States. TION PROJECT EXCEPTIONS TO AN contracting for acquisition of information ‘‘(b) COVERED REQUIREMENTS.—For pur- ACQUISITION WORKFORCE DEM- technology. poses of this section: ONSTRATION PROJECT. (3) Section 5401(c)(3) (110 Stat. 697; 40 U.S.C. ‘‘(1) A domestic source requirement is any Section 4308(b)(3)(B) of the National De- 1501), relating to a Comptroller General re- requirement under law that the Department fense Authorization Act for Fiscal Year 1996 view and report regarding a pilot program to of Defense satisfy its requirements for an (Public Law 104–106; 10 U.S.C. 1701 note) is test streamlined procedures for the procure- item by procuring an item that is grown, re- amended to read as follows: ment of information technology products processed, reused, produced, or manufactured ‘‘(B) commences before November 18, and services available for ordering through in the United States or by a manufacturer 2007.’’. multiple award schedules. that is a part of the national technology and SEC. 822. MORATORIUM ON REDUCTION OF THE SEC. 826. MULTIYEAR PROCUREMENT AUTHOR- industrial base (as defined in section 2500(1) DEFENSE ACQUISITION AND SUP- ITY FOR PURCHASE OF DINITROGEN of this title). PORT WORKFORCE. TETROXIDE, HYDRAZINE, AND HY- DRAZINE-RELATED PRODUCTS. ‘‘(2) A domestic content requirement is any (a) PROHIBITION.—Notwithstanding any (a) IN GENERAL.—Chapter 141 of title 10, requirement under law that the Department other provision of law, the defense acquisi- United States Code, is amended by inserting of Defense satisfy its requirements for an tion and support workforce may not be re- after section 2410n the following new section: item by procuring an item produced or man- duced, during fiscal years 2003, 2004, and 2005, ufactured partly or wholly from components below the level of that workforce as of Sep- ‘‘§ 2410o. Multiyear procurement authority: and materials grown, reprocessed, reused, tember 30, 2002, determined on the basis of purchase of dinitrogen tetroxide, hydra- produced, or manufactured in the United full-time equivalent positions. zine, and hydrazine-related products (b) WAIVER AUTHORITY.—The Secretary of States. ‘‘(a) TEN-YEAR CONTRACT PERIOD.—The Defense may waive the prohibition in sub- Secretary of Defense may enter into a con- ‘‘(c) APPLICABILITY.—The authority of the section (a) and reduce the level of the de- Secretary to waive the application of a do- tract for a period of up to 10 years for the fense acquisition and support workforce purchase of dinitrogen tetroxide, hydrazine, mestic source or content requirements under upon submitting to Congress the Secretary’s subsection (a) applies to the procurement of and hydrazine-related products for the sup- certification that the defense acquisition port of a United States national security items for which the Secretary of Defense de- and support workforce, at the level to which termines that— program or a United States space program. reduced, will be able efficiently and effec- ‘‘(b) EXTENSIONS.—A contract entered into ‘‘(1) application of the requirement would tively to perform the workloads that are re- impede the reciprocal procurement of de- for more than one year under the authority quired of that workforce consistent with the of subsection (a) may be extended for a total fense items under a memorandum of under- cost-effective management of the defense ac- standing providing for reciprocal procure- of not more than 10 years pursuant to any quisition system to obtain best value equip- option or options set forth in the contract.’’. ment of defense items between a foreign ment and with ensuring military readiness. country and the United States in accordance (b) CLERICAL AMENDMENT.—The table of (c) DEFENSE ACQUISITION AND SUPPORT sections at the beginning of chapter 141 is with section 2531 of this title; and WORKFORCE DEFINED.—In this section, the ‘‘(2) such country does not discriminate amended by adding at the end the following term ‘‘defense acquisition and support work- item: against defense items produced in the United force’’ means Armed Forces and civilian per- ‘‘2410o. Multiyear procurement authority: States to a greater degree than the United sonnel who are assigned to, or are employed purchase of dinitrogen tetrox- States discriminates against defense items in, an organization of the Department of De- ide, hydrazine, and hydrazine- produced in that country. fense that is— related products.’’. ‘‘(d) LIMITATION ON DELEGATION.—The au- (1) an acquisition organization specified in thority of the Secretary to waive the appli- Department of Defense Instruction 5000.58, SEC. 827. MULTIYEAR PROCUREMENT AUTHOR- cation of domestic source or content require- dated January 14, 1992; or ITY FOR ENVIRONMENTAL SERVICES FOR MILITARY INSTALLATIONS. ments under subsection (a) may not be dele- (2) an organization not so specified that (a) AUTHORITY.—Subsection (b) of section gated to any officer or employee other than has acquisition as its predominant mission, 2306c of title 10, United States Code, is the Under Secretary of Defense for Acquisi- as determined by the Secretary of Defense. tion, Technology and Logistics. amended by adding at the end the following SEC. 823. EXTENSION OF CONTRACT GOAL FOR new paragraph: ‘‘(e) CONSULTATIONS.—The Secretary may SMALL DISADVANTAGED BUSI- ‘‘(5) Environmental remediation services NESSES AND CERTAIN INSTITU- grant a waiver of the application of a domes- for— tic source or content requirement under sub- TIONS OF HIGHER EDUCATION. Section 2323(k) of title 10, United States ‘‘(A) an active military installation; section (a) only after consultation with the ‘‘(B) a military installation being closed or United States Trade Representative, the Sec- Code, is amended by striking ‘‘2003’’ both places it appears and inserting ‘‘2006’’. realigned under a base closure law; or retary of Commerce, and the Secretary of ‘‘(C) a site formerly used by the Depart- State. SEC. 824. MENTOR-PROTEGE PROGRAM ELIGI- ment of Defense.’’. BILITY FOR HUBZONE SMALL BUSI- ‘‘(f) LAWS NOT WAIVABLE.—The Secretary NESS CONCERNS AND SMALL BUSI- (b) DEFINITIONS.—Such section is further of Defense may not exercise the authority NESS CONCERNS OWNED AND CON- amended by adding at the end the following under subsection (a) to waive any domestic TROLLED BY SERVICE-DISABLED new subsection: source or content requirement contained in VETERANS. ‘‘(g) ADDITIONAL DEFINITIONS.—In this sec- any of the following laws: Section 831(m)(2) of the National Defense tion: ‘‘(1) The Small Business Act (15 U.S.C. 631 Authorization Act for Fiscal Year 1991 (10 ‘‘(1) The term ‘base closure law’ has the et seq.). U.S.C. 2302 note), is amended— meaning given such term in section 2667(h)(2) ‘‘(2) The Javits-Wagner-O’Day Act (41 (1) by striking ‘‘or’’ at the end of subpara- of this title. U.S.C. et seq.). graph (D); ‘‘(2) The term ‘military installation’ has ‘‘(3) Sections 7309 and 7310 of this title. (2) by striking the period at the end of sub- the meaning given such term in section ‘‘(4) Section 2533a of this title. paragraph (E) and inserting a semicolon; and 2801(c)(2) of this title.’’. ‘‘(g) RELATIONSHIP TO OTHER WAIVER AU- (3) by adding at the end the following new SEC. 828. INCREASED MAXIMUM AMOUNT OF AS- THORITY.—The authority under subsection subparagraphs: SISTANCE FOR TRIBAL ORGANIZA- (a) to waive a domestic source requirement ‘‘(F) a qualified HUBZone small business TIONS OR ECONOMIC ENTERPRISES or domestic content requirement is in addi- concern, within the meaning of section CARRYING OUT PROCUREMENT 3(p)(5) of the Small Business Act (15 U.S.C. TECHNICAL ASSISTANCE PROGRAMS tion to any other authority to waive such re- IN TWO OR MORE SERVICE AREAS. 632(p)(5)); or quirement. Section 2414(a)(4) of title 10, United States ‘‘(G) a small business concern owned and ‘‘(h) CONSTRUCTION WITH RESPECT TO LATER Code, is amended by striking ‘‘$300,000’’ and controlled by service-disabled veterans, as ENACTED LAWS.—This section may not be inserting ‘‘$600,000’’. construed as being inapplicable to a domes- defined in section 3(q)(2) of the Small Busi- ness Act (15 U.S.C. 632(q)(2)).’’. SEC. 829. AUTHORITY FOR NONPROFIT ORGANI- tic source requirement or domestic content ZATIONS TO SELF-CERTIFY ELIGI- requirement that is set forth in a law en- SEC. 825. REPEAL OF REQUIREMENTS FOR CER- BILITY FOR TREATMENT AS QUALI- acted after the enactment of this section TAIN REVIEWS BY THE COMP- FIED ORGANIZATIONS EMPLOYING solely on the basis of the later enactment.’’. TROLLER GENERAL. SEVERELY DISABLED UNDER MEN- The following provisions of the National TOR-PROTEGE PROGRAM. (b) CLERICAL AMENDMENT.—The table of Defense Authorization Act for Fiscal Year Section 831 of the National Defense Au- sections at the beginning of such subchapter 1996 (Public Law 104–106) are repealed: thorization Act for Fiscal Year 1991 (10 is amended by inserting after the item relat- (1) Section 912(d) (110 Stat. 410; 10 U.S.C. U.S.C. 2302 note) is amended by adding at the ing to section 2539b the following new item: 2216 note), relating to Comptroller General end the following new subsection: ‘‘2539c. Waiver of domestic source or content reviews of the administration of the Defense ‘‘(n) SELF-CERTIFICATION OF NONPROFIT OR- requirements.’’. Modernization Account. GANIZATIONS AS QUALIFIED ORGANIZATIONS

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6395

EMPLOYING THE SEVERELY DISABLED.—(1) The than the date on which the President sub- with respect to the prevention and mitiga- Secretary of Defense may, in accordance mits the budget for the next fiscal year to tion of corrosion. with such requirements as the Secretary Congress under section 1105(a) of title 31’’. (2) An outline and milestones for devel- may establish, permit a business entity oper- SEC. 902. INCREASED NUMBER OF DEPUTY COM- oping a long-term corrosion prevention and ating on a non-profit basis to self-certify its MANDANTS AUTHORIZED FOR THE mitigation strategy. eligibility for treatment as a qualified orga- MARINE CORPS. (d) LONG-TERM STRATEGY.—(1) Not later nization employing the severely disabled Section 5045 of title 10, United States Code, than one year after the date of the enact- under subsection (m)(2)(D). is amended by striking ‘‘five’’ and inserting ment of this Act, the Secretary of Defense ‘‘(2) The Secretary shall treat any entity ‘‘six’’. shall submit to Congress a long-term strat- described in paragraph (1) that submits a SEC. 903. BASE OPERATING SUPPORT FOR FISH- egy to reduce corrosion and the effects of self-certification under that paragraph as a ER HOUSES. corrosion on the military equipment and in- qualified organization employing the se- (a) EXPANSION OF REQUIREMENT TO INCLUDE frastructure of the Department of Defense. verely disabled until the Secretary receives ARMY AND AIR FORCE.—Section 2493(f) of title (2) The strategy shall provide for the fol- evidence, if any, that such entity is not de- 10, United States Code, is amended to read as lowing actions: scribed by paragraph (1) or does not merit follows: (A) Expanding the emphasis on corrosion treatment as a qualified organization em- ‘‘(f) BASE OPERATING SUPPORT.—The Sec- prevention and mitigation to include cov- ploying the severely disabled in accordance retary of the military department concerned erage of infrastructure. with applicable provisions of subsection (m). shall provide base operating support for (B) Applying uniformly throughout the De- ‘‘(3) Paragraphs (1) and (2) shall cease to be Fisher Houses associated with health care fa- partment of Defense requirements and cri- effective on the effective date of regulations cilities of that military department.’’. teria for the testing and certification of new prescribed by the Small Business Adminis- (b) EFFECTIVE DATE.—The amendment technologies for the prevention of corrosion. tration under this section setting forth a made by subsection (a) shall take effect on (C) Implementing programs, including pro- process for the certification of business enti- October 1, 2002. grams supporting databases, to foster the ties as eligible for treatment as a qualified SEC. 904. PREVENTION AND MITIGATION OF COR- collection and analysis of— organization employing the severely disabled ROSION. (i) data useful for determining the extent under subsection (m)(2)(D).’’. (a) ESTABLISHMENT.—Not later than 120 of the effects of corrosion on the mainte- SEC. 830. REPORT ON EFFECTS OF ARMY CON- days after the date of the enactment of this nance and readiness of military equipment TRACTING AGENCY. Act, the Secretary of Defense shall designate and infrastructure; and (a) IN GENERAL.—The Secretary of the an officer or employee of the Department of (ii) data on the costs associated with the Army shall submit a report on the effects of Defense as the senior official responsible prevention and mitigation of corrosion. the establishment of an Army Contracting (after the Secretary of Defense and the (D) Implementing programs, including sup- Agency on small business participation in Under Secretary of Defense for Acquisition, porting databases, to ensure that a focused Army procurements during the first year of Technology, and Logistics) for the preven- and coordinated approach is taken through- operation of such an agency to— tion and mitigation of corrosion of the mili- out the Department of Defense to collect, re- (1) the Committee on Armed Services of tary equipment and infrastructure of the De- view, validate, and distribute information on the House of Representatives; partment. The designated official shall re- proven methods and products that are rel- (2) the Committee on Armed Services of port directly to the Under Secretary of De- evant to the prevention of corrosion of mili- the Senate; fense for Acquisition, Technology, and Logis- tary equipment and infrastructure. (3) the Committee on Small Business of the tics. (E) Implementing a program to identify House of Representatives; and (b) DUTIES.—The official designated under specific funding in future budgets for the (4) the Committee on Small Business and subsection (a) shall direct and coordinate total life cycle costs of the prevention and Entrepreneurship of the Senate. initiatives throughout the Department of mitigation of corrosion. (b) CONTENT.—The report required under Defense to prevent and mitigate corrosion of (F) Establishing a coordinated research subsection (a) shall include, in detail— the military equipment and infrastructure of and development program for the prevention (1) the justification for the establishment the Department, including efforts to facili- and mitigation of corrosion for new and ex- of an Army Contracting Agency; tate the prevention and mitigation of corro- isting military equipment and infrastructure (2) the impact of the creation of an Army sion through— that includes a plan to transition new corro- Contracting Agency on— (1) development and recommendation of sion prevention technologies into oper- (A) Army compliance with— policy guidance on the prevention and miti- ational systems. (i) Department of Defense Directive 4205.1; gation of corrosion which the Secretary of (3) The strategy shall also include, for the (ii) section 15(g) of the Small Business Act Defense shall issue; actions provided for pursuant to paragraph (15 U.S.C. 644(g)); and (2) review of the annual budget proposed (2), the following: (iii) section 15(k) of the Small Business Act for the prevention and mitigation of corro- (A) Policy guidance. (15 U.S.C. 644(k)); sion by the Secretary of each military de- (B) Performance measures and milestones. (B) small business participation in Army partment and submittal of recommendations (C) An assessment of the necessary pro- procurement of products and services for af- regarding the proposed budget to the Sec- gram management resources and necessary fected Army installations, including— retary of Defense; financial resources. (i) the impact on small businesses located (3) direction and coordination of the efforts (e) GAO REVIEWS.—The Comptroller Gen- near Army installations, including— within the Department of Defense to prevent eral shall monitor the implementation of the (I) the increase or decrease in the total or mitigate corrosion during— long-term strategy required under sub- value of Army prime contracting with local (A) the design, acquisition, and mainte- section (d) and, not later than 18 months small businesses; and nance of military equipment; and after the date of the enactment of this Act, (II) the opportunities for small business (B) the design, construction, and mainte- submit to Congress an assessment of the ex- owners to meet and interact with Army pro- nance of infrastructure; and tent to which the strategy has been imple- curement personnel; and (4) monitoring of acquisition practices— mented. (ii) any change or projected change in the (A) to ensure that the use of corrosion pre- (f) DEFINITIONS.—In this section: use of consolidated contracts and bundled vention technologies and the application of (1) The term ‘‘corrosion’’ means the dete- contracts; and corrosion prevention treatments are fully rioration of a substance or its properties due (3) a description of the Army’s plan to ad- considered during research and development to a reaction with its environment. dress any negative impact on small business in the acquisition process; and (2) The term ‘‘military equipment’’ in- participation in Army procurement, to the (B) to ensure that, to the extent deter- cludes all air, land, and sea weapon systems, extent such impact is identified in the re- mined appropriate in each acquisition pro- weapon platforms, vehicles, and munitions of port. gram, such technologies and treatments are the Department of Defense, and the compo- (c) TIME FOR SUBMISSION.—The report incorporated into the program, particularly nents of such items. under this section shall be due 15 months during the engineering and design phases of (3) The term ‘‘infrastructure’’ includes all after the date of the establishment of the the acquisition process. buildings, structures, airfields, port facili- Army Contracting Agency. (c) INTERIM REPORT.—When the President ties, surface and subterranean utility sys- TITLE IX—DEPARTMENT OF DEFENSE submits the budget for fiscal year 2004 to tems, heating and cooling systems, fuel ORGANIZATION AND MANAGEMENT Congress pursuant to section 1105(a) of title tanks, pavements, and bridges. SEC. 901. TIME FOR SUBMITTAL OF REPORT ON 31, United States Code, the Secretary of De- (g) TERMINATION.—This section shall cease QUADRENNIAL DEFENSE REVIEW. fense shall submit to Congress a report re- to be effective on the date that is five years Section 118(d) of title 10, United States garding the actions taken under this section. after the date of the enactment of this Act. Code, is amended by striking ‘‘not later than The report shall include the following mat- SEC. 905. WESTERN HEMISPHERE INSTITUTE FOR September 30 of the year in which the review ters: SECURITY COOPERATION. is conducted’’ in the second sentence and in- (1) The organizational structure for the (a) AUTHORITY TO ACCEPT FOREIGN GIFTS serting ‘‘in the year following the year in personnel carrying out the responsibilities of AND DONATIONS.—Section 2166 of title 10, which the review is conducted, but not later the official designated under subsection (a) United States Code, is amended—

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 S6396 CONGRESSIONAL RECORD — SENATE July 8, 2002 (1) by redesignating subsections (f), (g), and (1) by transferring section 137 within such (2) may not be used to provide authority (h), as subsections (g), (h), and (i), respec- chapter to appear following section 138; for an item that has been denied authoriza- tively; and (2) by redesignating sections 137 and 139 as tion by Congress. (2) by inserting after subsection (e) the fol- sections 139 and 139a, respectively; and (c) EFFECT ON AUTHORIZATION AMOUNTS.—A lowing new subsection (f): (3) by inserting after section 136a the fol- transfer made from one account to another ‘‘(f) AUTHORITY TO ACCEPT FOREIGN GIFTS lowing new section 137: under the authority of this section shall be AND DONATIONS.—(1) The Secretary of De- ‘‘§ 137. Under Secretary of Defense for Intel- deemed to increase the amount authorized fense may, on behalf of the Institute, accept ligence for the account to which the amount is foreign gifts or donations in order to defray transferred by an amount equal to the the costs of, or enhance the operation of, the ‘‘(a) There is an Under Secretary of De- amount transferred. Institute. fense for Intelligence, appointed from civil- (d) NOTICE TO CONGRESS.—The Secretary ‘‘(2) Funds received by the Secretary under ian life by the President, by and with the ad- shall promptly notify Congress of each trans- paragraph (1) shall be credited to appropria- vice and consent of the Senate. fer made under subsection (a). tions available for the Department of De- ‘‘(b) Subject to the authority, direction, SEC. 1002. REALLOCATION OF AUTHORIZATIONS fense for the Institute. Funds so credited and control of the Secretary of Defense, the OF APPROPRIATIONS FROM BAL- shall be merged with the appropriations to Under Secretary of Defense for Intelligence LISTIC MISSILE DEFENSE TO SHIP- which credited and shall be available for the shall perform such duties and exercise such BUILDING. Institute for the same purposes and same pe- powers as the Secretary of Defense may pre- (a) AMOUNT.—Notwithstanding any other riod as the appropriations with which scribe in the area of intelligence. provision of this Act, the total amount au- merged. ‘‘(c) The Under Secretary of Defense for thorized to be appropriated under section ‘‘(3) The Secretary of Defense shall notify Personnel and Readiness takes precedence in 201(4) is hereby reduced by $690,000,000, and Congress if the total amount of money ac- the Department of Defense after the Under the amount authorized to be appropriated cepted under paragraph (1) exceeds $1,000,000 Secretary of Defense for Personnel and Read- under section 102(a)(3) is hereby increased by in any fiscal year. Any such notice shall list iness.’’. $690,000,000. each of the contributors of such money and (b) CONFORMING AMENDMENTS.—(1) Section (b) SOURCE OF REDUCTION.—The total the amount of each contribution in such fis- 131 of such title is amended— amount of the reduction in the amount au- cal year. (A) by striking paragraphs (2), (3), (4), and thorized to be appropriated under section ‘‘(4) For the purposes of this subsection, a (5), and inserting the following: 201(4) shall be derived from the amount pro- foreign gift or donation is a gift or donation ‘‘(2) The Under Secretaries of Defense, as vided under that section for ballistic missile of funds, materials (including research mate- follows: defense for research, development, test, and rials), property, or services (including lec- ‘‘(A) The Under Secretary of Defense for evaluation. ture services and faculty services) from a Acquisition, Technology, and Logistics. (c) ALLOCATION OF INCREASE.—Of the addi- foreign government, a foundation or other ‘‘(B) The Under Secretary of Defense for tional amount authorized to be appropriated charitable organization in a foreign country, Policy. under section 102(a)(3) pursuant to sub- or an individual in a foreign country.’’. ‘‘(C) The Under Secretary of Defense section (a)— (b) CONTENT OF ANNUAL REPORT TO CON- (Comptroller). (1) $415,000,000 shall be available for ad- GRESS.—Subsection (i) of such section, as re- vance procurement of a Virginia class sub- designated by subsection (a)(1), is amended ‘‘(D) The Under Secretary of Defense for Personnel and Readiness. marine; by inserting after the first sentence the fol- (2) $125,000,000 shall be available for ad- lowing: ‘‘The report shall include a copy of ‘‘(E) The Under Secretary of Defense for Intelligence.’’; and vance procurement of a DDG–51 class de- the latest report of the Board of Visitors re- stroyer; and ceived by the Secretary under subsection (B) by redesignating paragraphs (6), (7), (8), (9), (10), and (11) as paragraphs (3), (4), (5), (6), (3) $150,000,000 shall be available for ad- (e)(5), together with any comments of the vance procurement of an LPD–17 class am- Secretary on the Board’s report.’’. (7), and (8), respectively. (2) The table of sections at the beginning of phibious transport dock. SEC. 906. VETERINARY CORPS OF THE ARMY. chapter 4 of such title is amended— SEC. 1003. AUTHORIZATION OF APPROPRIATIONS (a) COMPOSITION AND ADMINISTRATION.—(1) (A) by striking the item relating to section FOR CONTINUED OPERATIONS FOR Chapter 307 of title 10, United States Code, is THE WAR ON TERRORISM. 137 and inserting the following: amended by inserting after section 3070 the (a) AMOUNT.—(1) In addition to the following new section 3071: ‘‘137. Under Secretary of Defense for Intel- amounts authorized to be appropriated under ‘‘§ 3071. Veterinary Corps: composition; Chief ligence.’’; divisions A and B, funds are hereby author- and assistant chief; appointment; grade and ized to be appropriated for fiscal year 2003 (B) by striking the item relating to section ‘‘(a) COMPOSITION.—The Veterinary Corps (subject to subsection (b)) in the total consists of the Chief and assistant chief of 139 and inserting the following: amount of $10,000,000,000 for the conduct of that corps and other officers in grades pre- ‘‘139. Director of Research and Engineering. operations in continuation of the war on ter- scribed by the Secretary of the Army. ‘‘139a. Director of Operational Test and Eval- rorism in accordance with the Authorization ‘‘(b) CHIEF.—The Secretary of the Army uation.’’. for Use of Military Force (Public Law 107–40; shall appoint the Chief from the officers of (c) EXECUTIVE LEVEL III.—Section 5314 of 50 U.S.C. 1541 note). the Regular Army in that corps whose reg- title 5, United States Code, is amended by in- (2) The amount authorized to be appro- ular grade is above lieutenant colonel and serting after ‘‘Under Secretary of Defense for priated under paragraph (1) shall be avail- who are recommended by the Surgeon Gen- Personnel and Readiness.’’ the following: able for increased operating costs, transpor- eral. An appointee who holds a lower regular ‘‘Under Secretary of Defense for Intel- tation costs, costs of humanitarian efforts, grade may be appointed in the regular grade ligence.’’. costs of special pays, costs of enhanced intel- of brigadier general. The Chief serves during TITLE X—GENERAL PROVISIONS ligence efforts, increased personnel costs for the pleasure of the Secretary, but not for members of the reserve components ordered more than four years, and may not be re- Subtitle A—Financial Matters to active duty under a provision of law re- appointed to the same position. SEC. 1001. TRANSFER AUTHORITY. ferred to in section 101(a)(13)(B) of title 10, ‘‘(c) ASSISTANT CHIEF.—The Surgeon Gen- (a) AUTHORITY TO TRANSFER AUTHORIZA- United States Code, and other costs related eral shall appoint the assistant chief from TIONS.—(1) Upon determination by the Sec- to operations referred to in paragraph (1). the officers of the Regular Army in that retary of Defense that such action is nec- (b) AUTHORIZATION CONTINGENT ON BUDGET corps whose regular grade is above lieuten- essary in the national interest, the Sec- REQUEST.—The authorization of appropria- ant colonel. The assistant chief serves during retary may transfer amounts of authorizations in subsection (a) shall be effective only the pleasure of the Surgeon General, but not tions made available to the Department of to the extent of the amount provided in a for more than four years and may not be re- Defense in this division for fiscal year 2003 budget request for the appropriation of funds appointed to the same position.’’. between any such authorizations for that fis- for purposes set forth in subsection (a) that (2) The table of sections at the beginning of cal year (or any subdivisions thereof). is submitted by the President to Congress such chapter is amended by inserting after Amounts of authorizations so transferred after the date of the enactment of this Act the item relating to section 3070 the fol- shall be merged with and be available for the and— lowing new item: same purposes as the authorization to which (1) includes a designation of the requested ‘‘3071. Veterinary Corps: composition; Chief transferred. amount as being essential to respond to or and assistant chief; appoint- (2) The total amount of authorizations protect against acts or threatened acts of ment; grade.’’. that the Secretary may transfer under the terrorism; and (b) EFFECTIVE DATE.—Section 3071 of title authority of this section may not exceed (2) specifies a proposed allocation and plan 10, United States Code, as added by sub- $2,500,000,000. for the use of the appropriation for purposes section (a), shall take effect on October 1, (b) LIMITATIONS.—The authority provided set forth in subsection (a). 2002. by this section to transfer authorizations— SEC. 1004. AUTHORIZATION OF EMERGENCY SUP- SEC. 907. UNDER SECRETARY OF DEFENSE FOR (1) may only be used to provide authority PLEMENTAL APPROPRIATIONS FOR INTELLIGENCE. for items that have a higher priority than FISCAL YEAR 2002. (a) ESTABLISHMENT OF POSITION.—Chapter 4 the items from which authority is trans- Amounts authorized to be appropriated to of title 10, United States Code, is amended— ferred; and the Department of Defense for fiscal year

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6397 2002 in the National Defense Authorization formly throughout the Department of De- Financial Management Modernization Exec- Act for Fiscal Year 2002 (Public Law 107–107) fense; utive Committee established pursuant to are hereby adjusted, with respect to any (2) enables the Department of Defense— section 185 of title 10, United States Code. such authorized amount, by the amount by (A) to comply with Federal accounting, fi- SEC. 1007. DEPARTMENTAL ACCOUNTABLE OFFI- which appropriations pursuant to such au- nancial management, and reporting require- CIALS IN THE DEPARTMENT OF DE- thorization were increased (by a supple- ments; FENSE. mental appropriation) or decreased (by a re- (B) to routinely produce timely, accurate, (a) DESIGNATION AND ACCOUNTABILITY.— scission), or both, in any law making supple- and useful financial information for manage- Chapter 165 of title 10, United States Code, is mental appropriations for fiscal year 2002 ment purposes; amended by inserting after section 2773 the that is enacted during the 107th Congress, (C) to integrate budget, accounting, and following new section: second session. program information and systems; and ‘‘§ 2773a. Departmental accountable officials (D) to provide for the systematic measure- SEC. 1005. UNITED STATES CONTRIBUTION TO ‘‘(a) DESIGNATION.—The Secretary of De- ment of performance, including the ability NATO COMMON-FUNDED BUDGETS fense may designate, in writing, as a depart- IN FISCAL YEAR 2003. to produce timely, relevant, and reliable cost mental accountable official any employee of (a) FISCAL YEAR 2003 LIMITATION.—The information. total amount contributed by the Secretary (c) COMPOSITION OF TRANSITION PLAN.—The the Department of Defense or any member of of Defense in fiscal year 2003 for the com- transition plan developed under subsection the armed forces who— mon-funded budgets of NATO may be any (a) shall contain specific time-phased mile- ‘‘(1) has a duty to provide a certifying offi- amount up to, but not in excess of, the stones for modifying or eliminating existing cial of the Department of Defense with infor- amount specified in subsection (b) (rather systems and for acquiring new systems nec- mation, data, or services directly relied upon than the maximum amount that would oth- essary to implement the proposed enterprise by the certifying official in the certification erwise be applicable to those contributions architecture. of vouchers for payment; and under the fiscal year 1998 baseline limita- (d) EXPENDITURES FOR IMPLEMENTATION.— ‘‘(1) is not otherwise accountable under tion). The Secretary of Defense may not obligate subtitle III of title 31 or any other provision (b) TOTAL AMOUNT.—The amount of the more than $1,000,000 for a defense financial of law for payments made on the basis of the limitation applicable under subsection (a) is system improvement on or after the enter- vouchers. the sum of the following: prise architecture approval date unless the ‘‘(b) PECUNIARY LIABILITY.—(1) The Sec- (1) The amounts of unexpended balances, as Financial Management Modernization Exec- retary of Defense may, in a designation of a of the end of fiscal year 2002, of funds appro- utive Committee determines that the de- departmental accountable official under sub- priated for fiscal years before fiscal year 2003 fense financial system improvement is con- section (a), subject that official to pecuniary for payments for those budgets. sistent with the proposed enterprise archi- liability, in the same manner and to the tecture and transition plan. (2) The amount specified in subsection same extent as an official accountable under (e) EXPENDITURES PENDING ARCHITECTURE (c)(1). subtitle III of title 31, for an illegal, im- APPROVAL.—The Secretary of Defense may (3) The amount specified in subsection proper, or incorrect payment made pursuant not obligate more than $1,000,000 for a de- to a voucher certified by a certifying official (c)(2). fense financial system improvement during (4) The total amount of the contributions of the Department of Defense on the basis of the enterprise architecture pre-approval pe- information, data, or services that— authorized to be made under section 2501. riod unless the Financial Management Mod- (c) AUTHORIZED AMOUNTS.—Amounts au- ‘‘(A) the departmental accountable official ernization Executive Committee determines provides to the certifying official in the per- thorized to be appropriated by titles II and that the defense financial system improve- III of this Act are available for contributions formance of a duty described in subsection ment is necessary— (a)(1); and for the common-funded budgets of NATO as (1) to achieve a critical national security ‘‘(B) the certifying official directly relies follows: capability or address a critical requirement upon in certifying the voucher. (1) Of the amount provided in section in an area such as safety or security; or ‘‘(2) Any pecuniary liability imposed on a 201(1), $750,000 for the Civil Budget. (2) to prevent a significant adverse effect departmental accountable official under this (2) Of the amount provided in section (in terms of a technical matter, cost, or subsection for a loss to the United States re- 301(a)(1), $205,623,000 for the Military Budget. schedule) on a project that is needed to sulting from an illegal, improper, or incor- (d) DEFINITIONS.—For purposes of this sec- achieve an essential capability, taking into rect payment shall be joint and several with tion: consideration in the determination the alter- that of any other employee or employees of (1) COMMON-FUNDED BUDGETS OF NATO.—The native solutions for preventing the adverse the United States or member or members of term ‘‘common-funded budgets of NATO’’ effect. the uniformed services who are pecuniarily means the Military Budget, the Security In- (f) COMPTROLLER GENERAL REVIEW.—Not vestment Program, and the Civil Budget of later than March 1 of each of 2003, 2004, and liable for the loss. the North Atlantic Treaty Organization (and 2005, the Comptroller General shall submit to ‘‘(c) RELIEF FROM PECUNIARY LIABILITY.— any successor or additional account or pro- the congressional defense committees a re- The Secretary of Defense shall relieve a de- gram of NATO). port on defense financial management sys- partmental accountable official from pecu- (2) FISCAL YEAR 1998 BASELINE LIMITATION.— tem improvements that have been under- niary liability imposed under subsection (b) The term ‘‘fiscal year 1998 baseline limita- taken during the previous year. The report in the case of a payment if the Secretary de- tion’’ means the maximum annual amount of shall include the Comptroller General’s as- termines that the payment was not a result Department of Defense contributions for sessment of the extent to which the improve- of fault or negligence on the part of the de- common-funded budgets of NATO that is set ments comply with the requirements of this partmental accountable official. forth as the annual limitation in section section. ‘‘(d) CERTIFYING OFFICIAL DEFINED.—In this 3(2)(C)(ii) of the resolution of the Senate giv- (g) DEFINITIONS.—In this section: section, the term ‘certifying official’ means ing the advice and consent of the Senate to (1) The term ‘‘defense financial system an employee who has the responsibilities the ratification of the Protocols to the North improvement’’— specified in section 3528(a) of title 31.’’. Atlantic Treaty of 1949 on the Accession of (A) means the acquisition of a new budg- (b) CLERICAL AMENDMENT.—The table of Poland, Hungary, and the Czech Republic (as etary, accounting, finance, or data feeder sections at the beginning of such chapter is defined in section 4(7) of that resolution), ap- system for the Department of Defense, or a amended by inserting after the item relating proved by the Senate on April 30, 1998. modification of an existing budgetary, ac- to section 2773 the following new item: SEC. 1006. DEVELOPMENT AND IMPLEMENTA- counting, finance, or data feeder system of ‘‘2773a. Departmental accountable offi- TION OF FINANCIAL MANAGEMENT the Department of Defense; and cials.’’. (B) does not include routine maintenance ENTERPRISE ARCHITECTURE. SEC. 1008. DEPARTMENT-WIDE PROCEDURES FOR (a) REQUIREMENT FOR ENTERPRISE ARCHI- and operation of any such system. ESTABLISHING AND LIQUIDATING TECTURE AND TRANSITION PLAN.—Not later (2) The term ‘‘enterprise architecture ap- PERSONAL PECUNIARY LIABILITY. than March 15, 2003, the Secretary of Defense proval date’’ means the date on which the (a) REPORT OF SURVEY PROCEDURES.—(1) shall develop a proposed financial manage- Secretary of Defense approves a proposed fi- Chapter 165 of title 10, United States Code, is ment enterprise architecture for all budg- nancial management enterprise architecture amended by inserting after section 2786 the etary, accounting, finance, and data feeder and a transition plan that satisfy the re- following new section: systems of the Department of Defense, to- quirements of this section. ‘‘§ 2787. Reports of survey gether with a transition plan for imple- (3) The term ‘‘enterprise architecture pre- menting the proposed enterprise architec- approval period’’ means the period beginning ‘‘(a) REGULATIONS.—Under regulations pre- ture. on the date of the enactment of this Act and scribed pursuant to subsection (c), any offi- (b) COMPOSITION OF ARCHITECTURE.—The ending on the day before the enterprise ar- cer of the armed forces or any civilian em- proposed financial management enterprise chitecture approval date. ployee of the Department of Defense des- architecture developed under subsection (a) (4) The term ‘‘feeder system’’ means a data ignated in accordance with the regulations shall describe a system that, at a feeder system within the meaning of section may act upon reports of survey and vouchers minimum— 2222(c)(2) of title 10, United States Code. pertaining to the loss, spoilage, (1) includes data standards and system (5) The term ‘‘Financial Management Mod- unserviceability, unsuitability, or destruc- interface requirements that are to apply uni- ernization Executive Committee’’ means the tion of, or damage to, property of the United

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 S6398 CONGRESSIONAL RECORD — SENATE July 8, 2002 States under the control of the Department the written consent of the employee or mem- necessary to demonstrate which appropria- of Defense. ber. tion should be charged and further efforts ‘‘(b) FINALITY OF ACTION.—(1) Action taken ‘‘(4) The Secretary of Defense shall pre- are not in the best interests of the United under subsection (a) is final except as pro- scribe procedures for deducting and with- States. vided in paragraph (2). holding amounts from pay under this sub- (c) CONSULTATION.—The Secretary of De- ‘‘(2) An action holding a person pecuniarily section. The procedures shall be substan- fense shall consult the Secretary of the liable for loss, spoilage, destruction, or dam- tially equivalent to the procedures under Treasury in the exercise of the authority age is not final until approved by a person section 3716 of title 31. granted by subsections (a) and (b). designated to do so by the Secretary of a ‘‘(f) UNDER SECRETARY OF DEFENSE (COMP- (d) DURATION OF AUTHORITY.—(1) A par- military department, commander of a com- TROLLER).—The Secretary of Defense shall ticular undistributed disbursement may not batant command, or Director of a Defense act through the Under Secretary of Defense be canceled under subsection (a) more than Agency, as the case may be, who has juris- (Comptroller) in carrying out this section. 30 days after the date of the written deter- diction of the person held pecuniarily liable. ‘‘(g) DEFINITIONS.—In this section: mination made by the Secretary of Defense The person designated to provide final ap- ‘‘(1) The term ‘Defense travel card’ means under such subsection regarding that undis- proval shall be an officer of an armed force, a charge or credit card that— tributed disbursement. or a civilian employee, under the jurisdic- ‘‘(A) is issued to an employee of the De- (2) A particular discrepancy may not be tion of the official making the designation. partment of Defense or a member of the canceled under subsection (b) more than 30 ‘‘(c) REGULATIONS.—The Secretary of De- armed forces under a contract entered into days after the date of the written determina- fense shall prescribe regulations to carry out by the Department of Defense and the issuer tion made by the Secretary of Defense under this section.’’. of the card; and such subsection regarding that discrepancy. (2) The table of sections at the beginning of ‘‘(B) is to be used for charging expenses in- (3) No authority may be exercised under chapter 165 of such title is amended by incurred by the employee or member in con- this section after the date that is two years serting after the item relating to section 2786 nection with official travel. after the date of the enactment of this Act. the following new item: ‘‘(2) The term ‘disposable pay’, with re- SEC. 1011. ADDITIONAL AMOUNT FOR BALLISTIC ‘‘2787. Reports of survey.’’. spect to a pay period, means the amount MISSILE DEFENSE OR COMBATING (b) DAMAGE OR REPAIR OF ARMS AND EQUIP- equal to the excess of the amount of basic TERRORISM IN ACCORDANCE WITH NATIONAL SECURITY PRIORITIES OF MENT.—Section 1007(e) of title 37, United pay payable for the pay period over the total THE PRESIDENT. States Code, is amended by striking ‘‘Army of the amounts deducted and withheld from (a) AUTHORIZATION OF APPROPRIATIONS.—In or the Air Force’’ and inserting ‘‘Army, such pay.’’. addition to other amounts authorized to be Navy, Air Force, or Marine Corps’’. (b) CONFORMING AMENDMENT.—Subsection appropriated by other provisions of this divi- (c) REPEAL OF SUPERSEDED PROVISIONS.—(1) (a) of such section is amended by striking ‘‘, sion, there is hereby authorized to be appro- Sections 4835 and 9835 of title 10, United acting through the Under Secretary of De- priated for the Department of Defense for fis- States Code, are repealed. fense (Comptroller),’’. cal year 2003, $814,300,000 for whichever of the (2) The tables of sections at the beginning SEC. 1010. CLEARANCE OF CERTAIN TRANS- following purposes the President determines of chapters 453 and 953 of such title are ACTIONS RECORDED IN TREASURY SUSPENSE ACCOUNTS AND RESOLU- that the additional amount is necessary in amended by striking the items relating to TION OF CERTAIN CHECK ISSUANCE the national security interests of the United sections 4835 and 9835, respectively. DISCREPANCIES. States: SEC. 1009. TRAVEL CARD PROGRAM INTEGRITY. (a) CLEARING OF SUSPENSE ACCOUNTS.—(1) (1) Research, development, test, and eval- (a) AUTHORITY.—Section 2784 of title 10, In the case of any transaction that was en- uation for ballistic missile defense programs United States Code, is amended by adding at tered into by or on behalf of the Department of the Department of Defense. the end the following new subsections: of Defense before March 1, 2001, that is re- (2) Activities of the Department of Defense ‘‘(d) DISBURSEMENT OF ALLOWANCES DI- corded in the Department of Treasury Budg- for combating terrorism at home and abroad. RECTLY TO CREDITORS.—(1) The Secretary of et Clearing Account (Suspense) designated as (b) OFFSET.—The total amount authorized Defense may require that any part of the account F3875, the Unavailable Check Can- to be appropriated under the other provi- travel or transportation allowances of an cellations and Overpayments (Suspense) des- sions of this division is hereby reduced by employee of the Department of Defense or a ignated as account F3880, or an Undistrib- $814,300,000 to reflect the amounts that the member of the armed forces be disbursed di- uted Intergovernmental Payments account Secretary determines unnecessary by reason rectly to the issuer of a Defense travel card designated as account F3885, and for which of a revision of assumptions regarding infla- if the amount is disbursed to the issuer in no appropriation for the Department of De- tion that are applied as a result of the payment of amounts of expenses of official fense has been identified— midsession review of the budget conducted travel that are charged by the employee or (A) any undistributed collection credited by the Office of Management and Budget member on the Defense travel card. to such account in such case shall be depos- during the spring and early summer of 2002. ‘‘(2) For the purposes of this subsection, ited to the miscellaneous receipts of the (c) PRIORITY FOR ALLOCATING FUNDS.—In the travel and transportation allowances re- Treasury; and the expenditure of additional funds made ferred to in paragraph (1) are amounts to (B) subject to paragraph (2), any undistrib- available by a lower rate of inflation, the top which an employee of the Department of De- uted disbursement recorded in such account priority shall be the use of such funds for De- fense is entitled under section 5702 of title 5 in such case shall be canceled. partment of Defense activities for protecting and or a member of the armed forces is enti- (2) An undistributed disbursement may not the American people at home and abroad by tled section 404 of title 37. be canceled under paragraph (1) until the combating terrorism at home and abroad. ‘‘(e) OFFSETS FOR DELINQUENT TRAVEL Secretary of Defense has made a written de- SEC. 1012. AVAILABILITY OF AMOUNTS FOR OR- CARD CHARGES.—(1) The Secretary of Defense termination that the appropriate official or EGON ARMY NATIONAL GUARD FOR may require that there be deducted and officials of the Department of Defense have SEARCH AND RESCUE AND MEDICAL withheld from any pay payable to an em- attempted without success to locate the doc- EVACUATION MISSIONS IN ADVERSE ployee of the Department of Defense or a umentation necessary to demonstrate which WEATHER CONDITIONS. member of the armed forces any amount appropriation should be charged and further (a) INCREASE IN AUTHORIZATION OF APPRO- that is owed by the employee or member to efforts are not in the best interests of the PRIATIONS FOR ARMY PROCUREMENT.—The a creditor by reason of one or more charges United States. amount authorized to be appropriated by of expenses of official travel of the employee (b) RESOLUTION OF CHECK ISSUANCE DIS- section 101(1) for procurement for the Army or member on a Defense travel card issued by CREPANCIES.—(1) In the case of any check for aircraft is hereby increased by $3,000,000. the creditor if the employee or member— drawn on the Treasury that was issued by or (b) AVAILABILITY.—Of the amount author- ‘‘(A) is delinquent in the payment of such on behalf of the Department of Defense be- ized to be appropriated by section 101(1) for amount under the terms of the contract fore October 31, 1998, for which the Secretary procurement for the Army for aircraft, as in- under which the card is issued; and of the Treasury has reported to the Depart- creased by subsection (a), $3,000,000 shall be ‘‘(B) does not dispute the amount of the de- ment of Defense a discrepancy between the available for the upgrade of three UH–60L linquency. amount paid and the amount of the check as Blackhawk helicopters of the Oregon Army ‘‘(2) The amount deducted and withheld transmitted to the Department of Treasury, National Guard to the capabilities of UH–60Q from pay under paragraph (1) with respect to and for which no specific appropriation for Search and Rescue model helicopters, includ- a debt owed a creditor as described in that the Department of Defense can be identified ing Star Safire FLIR, Breeze-Eastern Exter- paragraph shall be disbursed to the creditor as being associated with the check, the dis- nal Rescue Hoist, and Air Methods COTS to reduce the amount of the debt. crepancy shall be canceled, subject to para- Medical Systems upgrades, in order to im- ‘‘(3) The amount of pay deducted and with- graph (2). prove the utility of such UH–60L Blackhawk held from the pay owed to an employee or (2) A discrepancy may not be canceled helicopters in search and rescue and medical member with respect to a pay period under under paragraph (1) until the Secretary of evacuation missions in adverse weather con- paragraph (1) may not exceed 15 percent of Defense has made a written determination ditions. the disposable pay of the employee or mem- that the appropriate official or officials of (c) INCREASE IN AUTHORIZATION OF APPRO- ber for that pay period, except that a higher the Department of Defense have attempted PRIATIONS FOR MILITARY PERSONNEL.—The amount may be deducted and withheld with without success to locate the documentation amount authorized to be appropriated by

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6399 section 421 for military personnel is hereby meter gun on an expedited schedule that is ‘‘(1) supports the National Security Strat- increased by $1,800,000. consistent with the achievement of safety of egy; or (d) AVAILABILITY.—Of the amount author- operation and fire support capabilities meet- ‘‘(2) if there is no National Security Strat- ized to be appropriated by section 421 for ing the fire support requirements of the Ma- egy in effect, supports the ship force struc- military personnel, as increased by sub- rine Corps, but not later than October 1, 2006. ture called for in the report of the latest section (d), $1,800,000 shall be available for up SEC. 1023. REPORT ON INITIATIVES TO INCREASE Quadrennial Defense Review. to 26 additional personnel for the Oregon OPERATIONAL DAYS OF NAVY SHIPS. ‘‘(b) CONTENT.—The ship construction plan Army National Guard. (a) REQUIREMENT FOR REPORT ON INITIA- included in the defense budget materials for (e) OFFSET.—The amount authorized to be TIVES.—(1) The Under Secretary of Defense a fiscal year shall provide in detail for the appropriated by section 301(a)(1) for oper- for Acquisition, Technology, and Logistics construction of combatant and support ships ation and maintenance for the Army is here- shall submit to the Committees on Armed for the Navy over the 30 consecutive fiscal by reduced by $4,800,000, with the amount of Services of the Senate and the House of Rep- years beginning with the fiscal year covered the reduction to be allocated to Base Oper- resentatives a report on Department of De- by the defense budget materials and shall in- ations Support (Servicewide Support). fense initiatives to increase the number of clude the following matters: Subtitle B—Naval Vessels and Shipyards operational days of Navy ships as described ‘‘(1) A description of the necessary ship SEC. 1021. NUMBER OF NAVY SURFACE COMBAT- in subsection (b). force structure of the Navy. ANTS IN ACTIVE AND RESERVE (2) The report shall cover the ongoing De- ‘‘(2) The estimated levels of funding nec- SERVICE. partment of Defense initiatives as well as po- essary to carry out the plan, together with a (a) CONTINGENT REQUIREMENT FOR RE- tential initiatives that are under consider- discussion of the procurement strategies on PORT.—If, on the date of the enactment of ation within the Department of Defense. which such estimated funding levels are this Act, the total number of Navy ships (b) INITIATIVES WITHIN LIMITS OF EXISTING based. comprising the force of surface combatants FLEET AND DEPLOYMENT POLICY.—The Under ‘‘(3) A certification by the Secretary of De- is less than 116, the Secretary of the Navy Secretary shall, in the report, assess the fea- fense that both the budget for the fiscal year shall submit a report on the size of that sibility and identify the projected effects of covered by the defense budget materials and force to the Committees on Armed Services conducting initiatives that have the poten- the future-years defense program submitted of the Senate and the House of Representa- tial to increase the number of operational to Congress in relation to such budget under tives. The report shall be submitted not later days of Navy ships available to the com- section 221 of this title provide for funding than 90 days after such date and shall in- manders-in-chief of the regional unified com- ship construction for the Navy at a level clude a risk assessment for such force that is batant commands without increasing the that is sufficient for the procurement of the based on the same assumptions as those that number of Navy ships and without increasing ships provided for in the plan on schedule. were applied in the QDR 2001 current force the routine lengths of deployments of Navy ‘‘(4) If the budget for the fiscal year pro- risk assessment. ships above six months. vides for funding ship construction at a level (b) LIMITATION ON REDUCTION.—The force of (c) REQUIRED FOCUS AREAS.—The report that is not sufficient for the recapitalization surface combatants may not be reduced at shall, at a minimum, address the following of the force of Navy ships at the annual rate any time after the date of the enactment of four focus areas: necessary to sustain the force, an assessment this Act from a number of ships (whether (1) Assignment of additional ships, includ- (coordinated with the commanders of the above, equal to, or below 116) to a number of ing submarines, to home ports closer to the combatant commands in advance) that de- ships below 116 before the date that is 90 days areas of operation for the ships (known as scribes and discusses the risks associated after the date on which the Secretary of the ‘‘forward homeporting’’). with the reduced force structure that will re- Navy submits to the committees referred to (2) Assignment of ships to remain in a for- sult from funding ship construction at such in subsection (a) a written notification of the ward area of operations, together with rota- insufficient level. reduction. The notification shall include the tion of crews for each ship so assigned. ‘‘(c) DEFINITIONS.—In this section: following information: (3) Retention of ships for use until the end ‘‘(1) The term ‘budget’, with respect to a (1) The schedule for the reduction. of the full service life, together with invest- fiscal year, means the budget for such fiscal (2) The number of ships that are to comment of the funds necessary to support re- year that is submitted to Congress by the prise the reduced force of surface combat- tention to that extent. President under section 1105(a) of title 31. ants. (4) Prepositioning of additional ships with, ‘‘(2) The term ‘defense budget materials’, (3) A risk assessment for the reduced force under normal circumstances, small crews in with respect to a fiscal year, means the ma- that is based on the same assumptions as a forward area of operations. terials submitted to Congress by the Sec- those that were applied in the QDR 2001 cur- (d) TIME FOR SUBMITTAL.—The report shall retary of Defense in support of the budget for rent force risk assessment. be submitted at the same time that the such fiscal year. (c) PRESERVATION OF SURGE CAPABILITY.— President submits the budget for fiscal year ‘‘(3) The term ‘Quadrennial Defense Re- Whenever the total number of Navy ships 2004 to Congress under section 1105(a) of title view’ means the Quadrennial Defense Review comprising the force of surface combatants 31, United States Code. that is carried out under section 118 of this is less than 116, the Secretary of the Navy SEC. 1024. ANNUAL LONG-RANGE PLAN FOR THE title.’’. shall maintain on the Naval Vessel Register CONSTRUCTION OF SHIPS FOR THE (2) The table of sections at the beginning of a sufficient number of surface combatant NAVY. such chapter is amended by adding at the ships to enable the Navy to regain a total (a) FINDINGS.—Congress makes the fol- end the following new item: force of 116 surface combatant ships in active lowing findings: ‘‘231. Annual ship construction plan.’’. and reserve service in the Navy within 120 (1) Navy ships provide a forward presence Subtitle C—Reporting Requirements days after the President decides to increase for the United States that is a key to the na- the force of surface combatants. tional defense of the United States. SEC. 1031. REPEAL AND MODIFICATION OF VAR- (d) DEFINITIONS.—In this section: (2) The Navy has demonstrated that its IOUS REPORTING REQUIREMENTS (1) The term ‘‘force of surface combatants’’ APPLICABLE WITH RESPECT TO THE ships contribute significantly to homeland DEPARTMENT OF DEFENSE. means the surface combatant ships in active defense. and reserve service in the Navy. (a) PROVISIONS OF TITLE 10.—Title 10, (3) The Navy’s ship recapitalization plan is United States Code, is amended as follows: (2) The term ‘‘QDR 2001 current force risk inadequate to maintain the ship force struc- assessment’’ means the risk assessment asso- (1)(A) Section 183 is repealed. ture that is described as the current force in (B) The table of sections at the beginning ciated with a force of 116 surface combatant the 2001 Quadrennial Defense Review. ships in active and reserve service in the of chapter 7 is amended by striking the item (4) The Navy is decommissioning ships as relating to section 183. Navy that is set forth in the report on the much as 10 years earlier than the projected quadrennial defense review submitted to (2)(A) Sections 226 and 230 are repealed. ship life upon which ship replacement rates (B) The table of sections at the beginning Congress on September 30, 2001, under sec- are based. tion 118 of title 10, United States Code. of chapter 9 is amended by striking the items (5) The current force was assessed in the relating to sections 226 and 230. SEC. 1022. PLAN FOR FIELDING THE 155-MILLI- 2001 Quadrennial Defense Review as having METER GUN ON A SURFACE COM- (3) Effective two years after the date of the moderate to high risk, depending on the sce- enactment of this Act— BATANT. nario considered. (a) REQUIREMENT FOR PLAN.—The Sec- (A) section 483 is repealed; and (b) ANNUAL SHIP CONSTRUCTION PLAN.—(1) retary of the Navy shall submit to Congress (B) the table of sections at the beginning of Chapter 9 of title 10, United States Code, is a plan for fielding the 155-millimeter gun on chapter 23 is amended by striking the item amended by adding at the end the following one surface combatant ship in active service relating to section 483. new section: in the Navy. The Secretary shall submit the (4) Section 526 is amended by striking sub- plan at the same time that the President ‘‘§ 231. Annual ship construction plan section (c). submits the budget for fiscal year 2004 to ‘‘(a) ANNUAL SHIP CONSTRUCTION PLAN.— (5) Section 721(d) is amended— Congress under section 1105(a) of title 31, The Secretary of Defense shall include in the (A) by striking paragraph (2); and United States Code. defense budget materials for each fiscal year (B) by striking ‘‘(1)’’ before ‘‘If an officer’’. (b) FIELDING ON EXPEDITED SCHEDULE.—The a plan for the construction of combatant and (6) Section 1095(g) is amended— plan shall provide for fielding the 155-milli- support ships for the Navy that— (A) by striking paragraph (2); and

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.027 pfrm12 PsN: S08PT1 S6400 CONGRESSIONAL RECORD — SENATE July 8, 2002 (B) by striking ‘‘(1)’’ after ‘‘(g)’’. retary of Defense, Secretary of Energy, and ‘‘(1) Infrastructure. (7) Section 1798 is amended by striking sub- Director of Central Intelligence shall jointly ‘‘(2) Military construction. section (d). submit to the congressional defense commit- ‘‘(3) Physical conditions at military instal- (8) Section 1799 is amended by striking sub- tees a report on the research and develop- lations and other Department of Defense fa- section (d). ment activities undertaken by their respec- cilities. (9) Section 2220 is amended— tive agencies during the preceding fiscal ‘‘(4) Budget plans. (A) by striking subsections (b) and (c); year to develop a weapon to defeat hardened ‘‘(5) Adequacy of medical care for members (B) by striking ‘‘(1)’’ after ‘‘ESTABLISHMENT and deeply buried targets. of the armed forces and their dependents. OF GOALS.—’’; and (b) REPORT ELEMENTS.—The report for a ‘‘(6) Adequacy of housing and the basic al- (C) by striking ‘‘(2) The’’ and inserting ‘‘(b) fiscal year under subsection (a) shall— lowance for housing and basic allowance for EVALUATION OF COST GOALS.—The’’. (1) include a discussion of the integration subsistence. (10) Section 2350a(g) is amended by striking and interoperability of the various programs ‘‘(7) Housing-related utility costs. paragraph (4). to develop a weapon referred to in that sub- ‘‘(8) Educational opportunities and costs. (11) Section 2350f is amended by striking section that were undertaken during such ‘‘(9) Length of deployments. subsection (c). fiscal year, including a discussion of the rel- ‘‘(10) Rates of pay, and pay differentials be- (12) Section 2350k is amended by striking evance of such programs to applicable deci- tween the pay of members and the pay of ci- subsection (d). sions of the Joint Requirements Oversight vilians. (13) Section 2367(d) is amended by striking Council; and ‘‘(11) Retention and recruiting efforts. ‘‘EFFORT.—(1) In the’’ and all that follows (2) set forth separately a description of the ‘‘(12) Workplace safety. through ‘‘(2) After the close of’’ and insert- research and development activities, if any, ‘‘(13) Support services for spouses and chil- ing ‘‘EFFORT.—After the close of’’. to develop a weapon referred to in that sub- dren. (14) Section 2391 is amended by striking section that were undertaken during such ‘‘(14) Other elements of Department of De- subsection (c). fiscal year by each military department, the fense programs and Federal Government (15) Section 2486(b)(12) is amended by strik- Department of Energy, and the Central In- policies and programs that affect the quality ing ‘‘, except that’’ and all that follows and telligence Agency. of life of members. inserting the following: ‘‘, except that the SEC. 1033. REVISION OF DATE OF ANNUAL RE- ‘‘(d) SUBMISSION OF QQLR TO CONGRES- Secretary shall notify Congress of any addi- PORT ON COUNTERPROLIFERATION SIONAL COMMITTEES.—The Secretary shall tion of, or change in, a merchandise category ACTIVITIES AND PROGRAMS. submit a report on each quadrennial quality under this paragraph.’’. Section 1503(a) of the National Defense Au- of life review to the Committees on Armed (16) Section 2492 is amended by striking thorization Act for Fiscal Year 1995 (22 Services of the Senate and the House of Rep- subsection (c) and inserting the following: U.S.C. 2751 note) is amended by striking resentatives. The report shall be submitted ‘‘(c) NOTIFICATION OF CONDITIONS NECESSI- ‘‘February 1 of each year’’ and inserting not later than September 30 of the year in TATING RESTRICTIONS.—The Secretary of De- ‘‘May 1 each year’’. which the review is conducted. The report fense shall notify Congress of any change SEC. 1034. QUADRENNIAL QUALITY OF LIFE RE- shall include the following: proposed or made to any of the host nation VIEW. ‘‘(1) The results of the review, including a laws or any of the treaty obligations of the (a) REQUIREMENT FOR REVIEW.—Chapter 23 comprehensive discussion of how the quality United States, and any changed conditions of title 10, United States Code, is amended by of life of members of the armed forces affects within host nations, if the change would ne- adding at the end the following new section: the national security strategy of the United cessitate the use of quantity or other restric- ‘‘§ 488. Quadrennial quality of life review States. tions on purchases in commissary and ex- ‘‘(2) The long-term quality of life problems ‘‘(a) REVIEW REQUIRED.—(1) The Secretary change stores located outside the United of the armed forces, together with proposed of Defense shall every four years, two years States.’’. solutions. after the submission of the quadrennial de- (17)(A) Section 2504 is repealed. ‘‘(3) The short-term quality of life prob- fense review to Congress under section 118 of (B) The table of sections at the beginning lems of the armed forces, together with pro- this title, conduct a comprehensive examina- of subchapter II of chapter 148 is amended by posed solutions. tion of the quality of life of the members of striking the item relating to section 2504. ‘‘(4) The assumptions used in the review. the armed forces (to be known as the ‘quad- (18) Section 2506— ‘‘(5) The effects of quality of life problems rennial quality of life review’). The review (A) is amended by striking subsection (b); on the morale of the members of the armed shall include examination of the programs, and forces. projects, and activities of the Department of (B) by striking ‘‘(a) DEPARTMENTAL GUID- ‘‘(6) The quality of life problems that affect Defense, including the morale, welfare, and ANCE.—’’. the morale of members of the reserve compo- recreation activities. (19) Section 2537(a) is amended by striking nents in particular, together with solutions. ‘‘(2) The quadrennial review shall be de- ‘‘$100,000’’ and inserting ‘‘$10,000,000’’. ‘‘(7) The effects of quality of life problems signed to result in determinations, and to (20) Section 2611 is amended by striking on military preparedness and readiness. foster policies and actions, that reflect the subsection (e). ‘‘(8) The appropriate ratio of— priority given the quality of life of members (21) Section 2667(d) is amended by striking ‘‘(A) the total amount expended by the De- of the armed forces as a primary concern of paragraph (3). partment of Defense in a fiscal year for pro- the Department of Defense leadership. (22) Section 2813 is amended by striking grams, projects, and activities designed to ‘‘(b) CONDUCT OF REVIEW.—Each quadren- subsection (c). improve the quality of life of members of the nial quality of life review shall be conducted (23) Section 2827 is amended— armed forces, to so as— (A) by striking subsection (b); and ‘‘(B) the total amount expended by the De- ‘‘(1) to assess quality of life priorities and (B) by striking ‘‘(a) Subject to subsection partment of Defense in the fiscal year.’’. issues consistent with the most recent Na- (b), the Secretary’’ and inserting ‘‘The Sec- (b) CLERICAL AMENDMENT.—The table of tional Security Strategy prescribed by the retary’’. sections at the beginning of such chapter is President pursuant to section 108 of the Na- (24) Section 2867 is amended by striking amended by adding at the end the following tional Security Act of 1947 (50 U.S.C. 404a); subsection (c). new item: ‘‘(2) to identify actions that are needed in (25) Section 4416 is amended by striking ‘‘488. Quadrennial quality of life review.’’. order to provide members of the armed subsection (f). forces with the quality of life reasonably SEC. 1035. REPORTS ON EFFORTS TO RESOLVE (26) Section 5721(f) is amended— WHEREABOUTS AND STATUS OF necessary to encourage the successful execu- (A) by striking paragraph (2); and CAPTAIN MICHAEL SCOTT tion of the full range of missions that the (B) by striking ‘‘(1)’’ after the subsection SPEICHER, UNITED STATES NAVY. members are called on to perform under the heading. (a) REPORTS.— Not later than 60 days after national security strategy; (b) NATIONAL DEFENSE AUTHORIZATION ACT the date of the enactment of this Act, and ‘‘(3) to provide a full accounting of the FOR FISCAL YEAR 1995.—Section 553(b) of the every 90 days thereafter, the Secretary of National Defense Authorization Act for Fis- backlog of installations in need of mainte- Defense shall, in consultation with the Sec- cal Year 1995 (Public Law 103–337; 108 Stat. nance and repair, to determine how the dis- retary of State and the Director of Central 2772; 10 U.S.C. 4331 note) is amended by strik- repair affects performance and quality of life Intelligence, submit to Congress a report on ing the last sentence. of members and their families, and to iden- the efforts of the United States Government (c) BALLISTIC MISSILE DEFENSE ACT OF tify the budget plan that would be required to determine the whereabouts and status of 1995.—Section 234 of the Ballistic Missile De- to provide the resources necessary to remedy Captain Michael Scott Speicher, United fense Act of 1995 (subtitle C of title II of Pub- the backlog of maintenance and repair; and States Navy. lic Law 104–106; 10 U.S.C. 2431 note) is amend- ‘‘(4) to identify other actions that have the (b) PERIOD COVERED BY REPORTS.—The first ed by striking subsection (f). potential for improving the quality of life of report under subsection (a) shall cover ef- SEC. 1032. ANNUAL REPORT ON WEAPONS TO DE- the members of the armed forces. forts described in that subsection preceding FEAT HARDENED AND DEEPLY BUR- ‘‘(c) CONSIDERATIONS.—Among the matters the date of the report, and each subsequent IED TARGETS. considered by the Secretary in conducting report shall cover efforts described in that (a) ANNUAL REPORT.—Not later than April the quadrennial review, the Secretary shall subsection during the 90-day period ending 1, 2003, and each year thereafter, the Sec- include the following matters: on the date of such report.

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(c) REPORT ELEMENTS.—Each report under SEC. 1039. REPORT ON VOLUNTEER SERVICES OF or production of weapons of mass destruc- subsection (a) shall describe, for the period MEMBERS OF THE RESERVE COMPO- tion. NENTS IN EMERGENCY RESPONSE covered by such report— Subtitle D—Homeland Defense (1) all direct and indirect contacts with the TO THE TERRORIST ATTACKS OF SEPTEMBER 11, 2001. Government of Iraq, or any successor gov- SEC. 1041. HOMELAND SECURITY ACTIVITIES OF (a) REQUIREMENT FOR REPORT.—Not later THE NATIONAL GUARD. ernment, regarding the whereabouts and sta- than 90 days after the date of the enactment tus of Michael Scott Speicher; (a) AUTHORITY.—Chapter 1 of title 32, of this Act, the Secretary of Defense shall (2) any request made to the government of United States Code, is amended by adding at submit to the Committees on Armed Serv- another country, including the intelligence the end the following new section: ices of the Senate and the House of Rep- service of such country, for assistance in re- ‘‘§ 116. Homeland security activities resentatives a report on volunteer services solving the whereabouts and status of Mi- described in subsection (b) that were pro- ‘‘(a) USE OF PERSONNEL PERFORMING FULL- chael Scott Speicher, including the response vided by members of the National Guard and TIME NATIONAL GUARD DUTY.—The Governor to such request; other reserve components of the Armed of a State may, upon the request by the head (3) each current lead on the whereabouts Forces, while not in a duty status pursuant of a Federal law enforcement agency and and status of Michael Scott Speicher, includ- to orders, during the period of September 11 with the concurrence of the Secretary of De- ing an assessment of the utility of such lead through 14, 2001. The report shall include a fense, order any personnel of the National in resolving the whereabouts and status of discussion of any personnel actions that the Guard of the State to perform full-time Na- Michael Scott Speicher; and Secretary considers appropriate for the tional Guard duty under section 502(f) of this (4) any cooperation with nongovernmental members regarding the performance of such title for the purpose of carrying out home- organizations or international organizations services. land security activities, as described in sub- in resolving the whereabouts and status of section (b). (b) COVERED SERVICES.—The volunteer Michael Scott Speicher, including the re- services referred to in subsection (a) are as ‘‘(b) PURPOSE AND DURATION.—(1) The pur- sults of such cooperation. follows: pose for the use of personnel of the National (d) FORM OF REPORTS.—Each report under (1) Volunteer services provided in the vi- Guard of a State under this section is to subsection (a) shall be submitted in classi- cinity of the site of the World Trade Center, temporarily provide trained and disciplined fied form, but may include an unclassified New York, New York, in support of emer- personnel to a Federal law enforcement summary. gency response to the terrorist attack on the agency to assist that agency in carrying out SEC. 1036. REPORT ON EFFORTS TO ENSURE ADE- World Trade Center on September 11, 2001. homeland security activities until that agen- QUACY OF FIRE FIGHTING STAFFS (2) Volunteer services provided in the vi- cy is able to recruit and train a sufficient AT MILITARY INSTALLATIONS. cinity of the Pentagon in support of emer- force of Federal employees to perform the Not later than Mary 31, 2003, the Secretary gency response to the terrorist attack on the homeland security activities. of Defense shall submit to Congress a report Pentagon on September 11, 2001. ‘‘(2) The duration of the use of the Na- tional Guard of a State under this section on the actions being undertaken to ensure SEC. 1040. BIANNUAL REPORTS ON CONTRIBU- that the fire fighting staffs at military in- TIONS TO PROLIFERATION OF WEAP- shall be limited to a period of 179 days. The stallations are adequate under applicable De- ONS OF MASS DESTRUCTION AND Governor of the State may, with the concur- partment of Defense regulations. DELIVERY SYSTEMS BY COUNTRIES rence of the Secretary of Defense, extend the OF PROLIFERATION CONCERN. period one time for an additional 90 days to SEC. 1037. REPORT ON DESIGNATION OF CER- meet extraordinary circumstances. TAIN LOUISIANA HIGHWAY AS DE- (a) REPORTS.—Not later than six months FENSE ACCESS ROAD. after the date of the enactment of this Act, ‘‘(c) RELATIONSHIP TO REQUIRED TRAIN- ING.—A member of the National Guard serv- Not later than March 1, 2003, the Secretary and every six months thereafter, the Presi- ing on full-time National Guard duty under of the Army shall submit to the congres- dent shall submit to Congress a report iden- orders authorized under subsection (a) shall sional defense committees a report con- tifying each foreign person that, during the participate in the training required under taining the results of a study on the advis- six-month period ending on the date of such section 502(a) of this title in addition to the ability of designating Louisiana Highway 28 report, made a material contribution to the duty performed for the purpose authorized between Alexandria, Louisiana, and development by a country of proliferation under that subsection. The pay, allowances, Leesville, Louisiana, a road providing access concern of— and other benefits of the member while par- to the Joint Readiness Training Center, Lou- (1) nuclear, biological, or chemical weap- ticipating in the training shall be the same isiana, and to Fort Polk, Louisiana, as a de- ons; or as those to which the member is entitled fense access road for purposes of section 210 (2) ballistic or cruise missile systems. ORM OF SUBMITTAL.—(1) A report under while performing duty for the purpose of car- of title 23, United States Code. (b) F subsection (a) may be submitted in classified rying out homeland security activities. The SEC. 1038. PLAN FOR FIVE-YEAR PROGRAM FOR form, whether in whole or in part, if the member is not entitled to additional pay, al- ENHANCEMENT OF MEASUREMENT President determines that submittal in that lowances, or other benefits for participation AND SIGNATURES INTELLIGENCE in training required under section 502(a)(1) of CAPABILITIES. form is advisable. (2) Any portion of a report under sub- this title. (a) FINDING.—Congress finds that the na- section (a) that is submitted in classified ‘‘(d) READINESS.—To ensure that the use of tional interest will be served by the rapid ex- form shall be accompanied by an unclassified units and personnel of the National Guard of ploitation of basic research on sensors for summary of such portion. a State for homeland security activities does purposes of enhancing the measurement and (c) DEFINITIONS.—In this section: not degrade the training and readiness of signatures intelligence (MASINT) capabili- (1) The term ‘‘foreign person’’ means— such units and personnel, the following re- ties of the Federal Government. (A) a natural person that is an alien; quirements shall apply in determining the (b) PLAN FOR PROGRAM.—(1) Not later than (B) a corporation, business association, homeland security activities that units and March 30, 2003, the Director of the Central partnership, society, trust, or any other non- personnel of the National Guard of a State Measurement and Signatures Intelligence governmental entity, organization, or group may perform: Office shall submit to Congress a plan for a that is organized under the laws of a foreign ‘‘(1) The performance of the activities may five-year program of research intended to country or has its principal place of business not adversely affect the quality of that provide for the incorporation of the results in a foreign country; training or otherwise interfere with the abil- of basic research on sensors into the meas- (C) any foreign governmental entity oper- ity of a member or unit of the National urement and signatures intelligence systems ating as a business enterprise; and Guard to perform the military functions of fielded by the Federal Government, includ- (D) any successor, subunit, or subsidiary of the member or unit. ing the review and assessment of basic re- any entity described in subparagraph (B) or ‘‘(2) National Guard personnel will not de- search on sensors for that purpose. (C). grade their military skills as a result of per- (2) Activities under the plan shall be car- (2) The term ‘‘country of proliferation conforming the activities. ried out by a consortium consisting of such cern’’ means any country identified by the ‘‘(3) The performance of the activities will governmental and non-governmental entities Director of Central Intelligence as having not result in a significant increase in the as the Director considers appropriate for engaged in the acquisition of dual-use and cost of training. purposes of incorporating the broadest prac- other technology useful for the development ‘‘(4) In the case of homeland security per- ticable range of sensor capabilities into the or production of weapons of mass destruction formed by a unit organized to serve as a systems referred to in paragraph (1). The (including nuclear, chemical, and biological unit, the activities will support valid unit consortium may include national labora- weapons) and advanced conventional muni- training requirements. tories, universities, and private sector enti- tions in the most current report under sec- ‘‘(e) PAYMENT OF COSTS.—(1) The Secretary ties. tion 721 of the Combatting Proliferation of of Defense shall provide funds to the Gov- (3) The plan shall include a proposal for the Weapons of Mass Destruction Act of 1996 ernor of a State to pay costs of the use of funding of activities under the plan, includ- (title VII of Public Law 104–293; 50 U.S.C. personnel of the National Guard of the State ing cost-sharing by non-governmental par- 2366), or any successor report on the acquisi- for the performance of homeland security ac- ticipants in the consortium under paragraph tion by foreign countries of dual-use and tivities under this section. Such funds shall (2). other technology useful for the development be used for the following costs:

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‘‘(A) The pay, allowances, clothing, sub- ‘‘(3) An accounting of the amount of funds (1) HOMELAND DEFENSE CAMPAIGN PLAN.—A sistence, gratuities, travel, and related ex- provided to each State. homeland defense campaign plan. penses (including all associated training ex- ‘‘(4) A description of the effect on military (2) INTELLIGENCE.—A discussion of the rela- penses, as determined by the Secretary), as training and readiness of using units and tionship between— authorized by State law, of personnel of the personnel of the National Guard to perform (A) the intelligence capabilities of— National Guard of that State used, while not homeland security activities under this sec- (i) the Department of Defense; and in Federal service, for the purpose of home- tion. (ii) other departments and agencies of the land security activities. ‘‘(i) STATUTORY CONSTRUCTION.—Nothing in United States; and ‘‘(B) The operation and maintenance of the this section shall be construed as a limita- (B) the performance of the homeland de- equipment and facilities of the National tion on the authority of any unit of the Na- fense mission. Guard of that State used for the purpose of tional Guard of a State, when such unit is (3) THREAT AND VULNERABILITY ASSESS- homeland security activities. not in Federal service, to perform law en- MENT.—A compliance-based national threat ‘‘(2) The Secretary of Defense shall require forcement functions authorized to be per- and vulnerability assessment. the head of a law enforcement agency receiv- formed by the National Guard by the laws of (4) TRAINING AND EXERCISING.—A discussion ing support from the National Guard of a the State concerned. of the Department of Defense plans for train- State in the performance of homeland secu- ‘‘(j) DEFINITIONS.—For purposes of this sec- ing and exercising for the performance of the rity activities under this section to reim- tion: homeland defense mission. burse the Department of Defense for the pay- ‘‘(1) The term ‘Governor of a State’ means, (5) BIOTERRORISM INITIATIVE.—An evalua- ments made to the State for such support in the case of the District of Columbia, the tion of the need for a Department of Defense under paragraph (1). Commanding General of the National Guard bioterrorism initiative to improve the abil- ‘‘(f) MEMORANDUM OF AGREEMENT.—The of the District of Columbia. ity of the department to counter bioterror Secretary of Defense and the Governor of a ‘‘(2) The term ‘State’ means each of the State shall enter into a memorandum of threats and to assist other agencies to im- several States, the District of Columbia, the agreement with the head of each Federal law prove the national ability to counter bio- Commonwealth of Puerto Rico, or a terri- enforcement agency to which the personnel terror threats. tory or possession of the United States.’’. of the National Guard of that State are to (6) CHEMICAL BIOLOGICAL INCIDENT RESPONSE (b) CLERICAL AMENDMENT.—The table of provide support in the performance of home- TEAMS.—An evaluation of the need for and sections at the beginning of such section is land security activities under this section. feasibility of developing and fielding Depart- amended by adding at the end the following The memorandum of agreement shall— ment of Defense regional chemical biological ‘‘(1) specify how personnel of the National new item: incident response teams. Guard are to be used in homeland security ‘‘116. Homeland security activities.’’. (7) OTHER MATTERS.—Any other matters activities; SEC. 1042. CONDITIONS FOR USE OF FULL-TIME that the Secretary of Defense considers rel- ‘‘(2) include a certification by the Adjutant RESERVES TO PERFORM DUTIES RE- evant regarding the efforts necessary to General of the State that those activities are LATING TO DEFENSE AGAINST carry out the intent referred to in subsection to be performed at a time when the per- WEAPONS OF MASS DESTRUCTION. (a). Section 12310(c)(3) of title 10, United States sonnel are not in Federal service; (c) HOMELAND DEFENSE CAMPAIGN PLAN.— Code, is amended by striking ‘‘only—’’ and ‘‘(3) include a certification by the Adjutant (1) ORGANIZATION, PLANNING, AND INTER- all that follows through ‘‘(B) while assigned’’ General of the State that— OPERABILITY.— and inserting ‘‘only while assigned’’. ‘‘(A) participation by National Guard per- (A) IN GENERAL.—The homeland defense sonnel in those activities is service in addi- SEC. 1043. WEAPON OF MASS DESTRUCTION DE- campaign plan under subsection (b)(1) shall tion to training required under section 502 of FINED FOR PURPOSES OF THE AU- contain a discussion of the organization and this title; and THORITY FOR USE OF RESERVES TO PERFORM DUTIES RELATING TO DE- planning of the Department of Defense for ‘‘(B) the requirements of subsection (d) of FENSE AGAINST WEAPONS OF MASS homeland defense, including the expecta- this section will be satisfied; DESTRUCTION. tions for interoperability of the Department ‘‘(4) include a certification by the Attorney (a) WEAPON OF MASS DESTRUCTION REDE- of Defense with other departments and agen- General of the State (or, in the case of a FINED.—Section 12304(i)(2) of title 10, United cies of the Federal Government and with State with no position of Attorney General, States Code, is amended to read as follows: State and local governments. a civilian official of the State equivalent to ‘‘(2) The term ‘weapon of mass destruction’ (B) CONTENT.—The plan shall include the a State attorney general), that the use of the means— following matters: National Guard of the State for the activi- ‘‘(A) any weapon that is designed or, (i) The duties, definitions, missions, goals, ties provided for under the memorandum of through its use, is intended to cause death or and objectives of organizations in the De- agreement is authorized by, and is consistent serious bodily injury through the release, partment of Defense that apply homeland de- with, State law; dissemination, or impact of toxic or poi- fense, together with an organizational as- ‘‘(5) include a certification by the Governor sonous chemicals or their precursors; sessment with respect to the performance of of the State or a civilian law enforcement of- ‘‘(B) any weapon that involves a disease or- the homeland defense mission and a discus- ficial of the State designated by the Gov- ganism; sion of any plans for making functional re- ernor that the activities provided for under ‘‘(C) any weapon that is designed to release alignments of organizations, authorities, and the memorandum of agreement serve a State radiation or radioactivity at a level dan- responsibilities for carrying out that mis- law enforcement purpose; and gerous to human life; and sion. ‘‘(6) include a certification by the head of ‘‘(D) any large conventional explosive that (ii) The relationships among the leaders of the Federal law enforcement agency that the is designed to produce catastrophic loss of the organizations (including the Secretary of agency will have a plan to ensure that the life or property.’’. Defense, the Joint Chiefs of Staff, the Com- agency’s requirement for National Guard (b) CONFORMING AMENDMENT.—Section mander in Chief of United States Northern support ends not later than 179 days after the 12310(c)(1) of such title is amended by strik- Command, the Commanders in Chief of the commencement of the support. ing ‘‘section 1403 of the Defense Against other regional unified combatant commands, ‘‘(g) EXCLUSION FROM END-STRENGTH COM- and the reserve components) in the perform- PUTATION.—Notwithstanding any other pro- Weapons of Mass Destruction Act of 1996 (50 ance of such duties. vision of law, members of the National U.S.C. 2302(1))’’ and inserting ‘‘section Guard on active duty or full-time National 12304(i)(2) of this title’’. (iii) The reviews, evaluations, and stand- Guard duty for the purposes of administering SEC. 1044. REPORT ON DEPARTMENT OF DE- ards that are established or are to be estab- (or during fiscal year 2003 otherwise imple- FENSE HOMELAND DEFENSE ACTIVI- lished for determining and ensuring the read- menting) this section shall not be counted TIES. iness of the organizations to perform such toward the annual end strength authorized (a) REPORT REQUIRED.—Not later than Feb- duties. for reserves on active duty in support of the ruary 1, 2003, the Secretary of Defense shall (2) RESPONSE TO ATTACK ON CRITICAL INFRA- reserve components of the armed forces or submit to the congressional defense commit- STRUCTURE.— toward the strengths authorized in sections tees a report on what actions of the Depart- (A) IN GENERAL.—The homeland defense 12011 and 12012 of title 10. ment of Defense would be necessary to carry campaign plan shall contain an outline of ‘‘(h) ANNUAL REPORT.—The Secretary of out the Secretary’s expressed intent— the duties and capabilities of the Depart- Defense shall submit to Congress an annual (1) to place new emphasis on the unique ment of Defense for responding to an attack report regarding any assistance provided and operational demands associated with the de- on critical infrastructure of the United activities carried out under this section dur- fense of the United States homeland; and States, including responding to an attack on ing the preceding fiscal year. The report (2) to restore the mission of defense of the critical infrastructure of the department, by shall include the following: United States to the position of being the means of a weapon of mass destruction or a ‘‘(1) The number of members of the Na- primary mission of the Department of De- CBRNE weapon or by a cyber means. tional Guard excluded under subsection (g) fense. (B) VARIOUS ATTACK SCENARIOS.—The out- from the computation of end strengths. (b) CONTENT OF THE REPORT.—The report line shall specify, for each major category of ‘‘(2) A description of the homeland security shall contain, in accordance with the other attack by a means described in subparagraph activities conducted with funds provided provisions of this section, the following mat- (A), the variations in the duties, responses, under this section. ters: and capabilities of the various Department

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of Defense organizations that result from the vulnerabilities of targets referred to in sub- (3) EMERGENCY MANAGEMENT STANDARD.— variations in the means of the attack. paragraphs (A) and (B). Options for broadening the scope of the Re- (C) DEFICIENCIES.—The outline shall iden- (D) PROCESS.—Plans, including timelines vised Emergency Management Standard of tify any deficiencies in capabilities and set and milestones, necessary to develop a proc- the Joint Commission on Accreditation of forth a plan for rectifying any such defi- ess for conducting compliance-based vulner- Healthcare Organizations by including the ciencies. ability assessments for critical infrastruc- broad and active participation of Federal, (D) LEGAL IMPEDIMENTS.—The outline shall ture, together with the standards to be used State, and local governmental agencies that identify and discuss each impediment in law for ensuring that the process is executable. are expected to respond in any event of a to the effective performance of the homeland (2) DEFINITION OF COMPLIANCE-BASED.—In CBRNE or cyber attack. defense mission. subsection (b)(3) and paragraph (1)(D) of this (4) LABORATORY RESPONSE NETWORK.—Op- (3) ROLES AND RESPONSIBILITIES IN INTER- subsection, the term ‘‘compliance-based’’, tions for the Department of Defense— AGENCY PROCESS.— with respect to an assessment, means that (A) to participate in the laboratory re- (A) IN GENERAL.—The homeland defense the assessment is conducted under policies sponse network for bioterrorism; and campaign plan shall contain a discussion of and procedures that require correction of (B) to increase the capacity of Department the roles and responsibilities of the Depart- each deficiency identified in the assessment of Defense laboratories rated by the Sec- ment of Defense in the interagency process to a standard set forth in Department of De- retary of Defense as level D laboratories to of policymaking and planning for homeland fense Instruction 2000.16 or another applica- facilitate participation in the network. defense. ble Department of Defense instruction, di- (h) CHEMICAL BIOLOGICAL INCIDENT RE- (B) INTEGRATION WITH STATE AND LOCAL AC- rective, or policy. SPONSE TEAMS.—The evaluation of the need TIVITIES.—The homeland defense campaign (f) TRAINING AND EXERCISING.—The discus- for and feasibility of developing and fielding plan shall include a discussion of Depart- sion of the Department of Defense plans for Department of Defense regional chemical bi- ment of Defense plans to integrate Depart- training and exercising for the performance ological incident response teams under sub- ment of Defense homeland defense activities of the homeland defense mission under subsection (b)(6) shall include a discussion and with the homeland defense activities of other section (b)(4) shall contain the following evaluation of the following options: departments and agencies of the United matters: (1) REGIONAL TEAMS.—Options for the De- States and the homeland defense activities (1) MILITARY EDUCATION.—The plans for the partment of Defense, using the chemical bio- of State and local governments, particularly training and education of members of the logical incident response force as a model, to with regard to issues relating to CBRNE and Armed Forces specifically for performance of develop, equip, train, and provide transpor- cyber attacks. homeland defense missions, including any tation for five United States based, strategi- (d) INTELLIGENCE CAPABILITIES.—The dis- anticipated changes in the curriculum in— cally located, regional chemical biological cussion of the relationship between the intel- (A) the National Defense University, the incident response teams. ligence capabilities and the performance of war colleges of the Armed Forces, graduate (2) RESOURCING.—Options and preferred the homeland defense mission under sub- education programs, and other senior mili- methods for providing the resources and per- section (b)(2) shall include the following tary schools and education programs; and sonnel necessary for developing and fielding matters: (B) the Reserve Officers’ Training Corps any such teams. OLES AND MISSIONS (1) R .—The roles and program, officer candidate schools, enlisted (i) DEFINITIONS.—In this section: missions of the Department of Defense for and officer basic and advanced individual (1) CBRNE.—The term ‘‘CBRNE’’ means the employment of the intelligence capabili- training programs, and other entry level chemical, biological, radiological, nuclear, ties of the department in homeland defense. military education and training programs. or explosive. (2) INTERAGENCY RELATIONSHIPS.—A discus- (2) EXERCISES.—The plans for using exer- (2) WEAPON OF MASS DESTRUCTION.—The sion of the relationship between the Depart- cises and simulation in the training of all term ‘‘weapon of mass destruction’’ has the ment of Defense and the other departments components of the Armed Forces, meaning given such term in section 1403 of and agencies of the United States that have including— the Defense Against Weapons of Mass De- duties for collecting or analyzing intel- (A) plans for integrated training with destruction Act of 1996 (50 U.S.C. 2302). ligence in relation to homeland defense, par- partments and agencies of the United States SEC. 1045. STRATEGY FOR IMPROVING PRE- ticularly in light of the conflicting demands outside the Department of Defense and with PAREDNESS OF MILITARY INSTALLA- of duties relating to the collection and anal- agencies of State and local governments; and TIONS FOR INCIDENTS INVOLVING ysis of domestic intelligence and duties re- (B) plans for developing an opposing force WEAPONS OF MASS DESTRUCTION. lating to the collection and analysis of for- that, for the purpose of developing potential (a) COMPREHENSIVE PLAN.—The Secretary eign intelligence. scenarios of terrorist attacks on targets in- of Defense shall develop a comprehensive (3) INTELLIGENCE-RELATED CHANGES.—Any side the United States, simulates a terrorist plan for improving the preparedness of mili- changes that are necessary in the Depart- group having the capability to engage in tary installations for preventing and re- ment of Defense in order to provide effective such attacks. sponding to incidents involving use or threat intelligence support for the performance of (g) BIOTERRORISM INITIATIVE.—The evalua- of use of weapons of mass destruction. homeland defense missions, with respect to— tion of the need for a Department of Defense (b) CONTENT.—The comprehensive plan (A) the preparation of threat assessments bioterrorism initiative under subsection shall set forth the following: and other warning products by the Depart- (b)(5) shall include a discussion that identi- (1) A strategy that— ment of Defense; fies and evaluates options for potential ac- (A) identifies— (B) collection of terrorism-related intel- tion in such an initiative, as follows: (i) long-term goals and objectives; ligence through human intelligence sources, (1) PLANNING, TRAINING, EXERCISE, EVALUA- (ii) resource requirements; and signals intelligence sources, and other intel- TION, AND FUNDING.—Options for— (iii) factors beyond the control of the Sec- ligence sources; and (A) refining the plans of the Department of retary that could impede the achievement of (C) intelligence policy, capabilities, and Defense for biodefense to include participa- the goals and objectives; and practices. tion of other departments and agencies of (B) includes a discussion of— (4) LEGAL IMPEDIMENTS.—Any impediments the United States and State and local gov- (i) the extent to which local, regional, or in law to the effective performance of intel- ernments; national military response capabilities are ligence missions in support of homeland de- (B) increasing biodefense training, exer- to be developed and used; and fense. cises, and readiness evaluations by the De- (ii) how the Secretary will coordinate (e) THREAT AND VULNERABILITY ASSESS- partment of Defense, including training, ex- these capabilities with local, regional, or na- MENT.— ercises, and evaluations that include partici- tional civilian capabilities. (1) CONTENT.—The compliance-based na- pation of other departments and agencies of (2) A performance plan that— tional threat and vulnerability assessment the United States and State and local gov- (A) provides a reasonable schedule, with under subsection (b)(3) shall include a discus- ernments; milestones, for achieving the goals and ob- sion of the following matters: (C) increasing Department of Defense fund- jectives of the strategy; (A) CRITICAL FACILITIES.—The threat of ter- ing for biodefense; and (B) performance criteria for measuring rorist attack on critical facilities, programs, (D) integrating other departments and progress in achieving the goals and objec- and systems of the United States, together agencies of the United States and State and tives; with the capabilities of the Department of local governments into the plans, training, (C) a description of the process, together Defense to deter and respond to any such at- exercises, evaluations, and resourcing. with a discussion of the resources, necessary tack. (2) DISEASE SURVEILLANCE.—Options for the to achieve the goals and objectives; (B) DOD VULNERABILITY.—The vulner- Department of Defense to develop an inte- (D) a description of the process for evalu- ability of installations, facilities, and per- grated disease surveillance detection system ating results. sonnel of the Department of Defense to at- and to improve systems for communicating (c) SUBMITTAL TO CONGRESS.—The Sec- tack by persons using weapons of mass de- information and warnings of the incidence of retary shall submit the comprehensive plan struction, CBRNE weapons, or cyber means. disease to recipients within the Department to the Committees on Armed Services of the (C) BALANCED SURVIVABILITY ASSESSMENT.— of Defense and to other departments and Senate and the House of Representatives not Plans to conduct a balanced survivability as- agencies of the United States and State and later than 180 days after the date of the en- sessment for use in determining the local governments. actment of this Act.

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(d) COMPTROLLER GENERAL REVIEW AND RE- PRIVATIZATION OF MILITARY HOUSING.—Sec- (2) Each report under paragraph (1) shall PORT.—Not later than 60 days after the Sec- tion 8003(b)(2) of the Elementary and Sec- include, for the period covered by such retary submits the comprehensive plan to ondary Education Act of 1965 (20 U.S.C. report— Congress under subsection (c), the Comp- 7703(b)(2)) is amended by adding at the end (A) the number of records reviewed; troller General shall review the plan and the following: (B) each test, if any, under the Shipboard submit an assessment of the plan to the com- ‘‘(H) ELIGIBILITY FOR HEAVILY IMPACTED Hazard and Defense project identified during mittees referred to in that subsection. LOCAL EDUCATIONAL AGENCIES AFFECTED BY such review; (e) ANNUAL REPORT.—(1) In each of 2004, PRIVATIZATION OF MILITARY HOUSING.— (C) for each test so identified— 2005, and 2006, the Secretary of Defense shall ‘‘(i) IN GENERAL.—For any fiscal year be- (i) the test name; include a report on the comprehensive plan ginning with fiscal year 2003, a heavily im- (ii) the test objective; in the materials that the Secretary submits pacted local educational agency that re- (iii) the chemical or biological agent or to Congress in support of the budget sub- ceived a basic support payment under sub- agents involved; and mitted by the President such year pursuant paragraph (A) for the prior fiscal year, but is (iv) the number of members of the Armed to section 1105(a) of title 31, United States ineligible for such payment for the current Forces, and civilian personnel, potentially Code. fiscal year under subparagraph (B) or (C), as effected by such test; and (2) The report shall include— the case may be, by reason of the conversion (D) the extent of submittal of records and (A) a discussion of any revision that the of military housing units to private housing information to the Secretary of Veterans Af- Secretary has made in the comprehensive described in clause (ii), shall be deemed to fairs under this section. plan since the last report; and meet the eligibility requirements under sub- SEC. 1066. TRANSFER OF HISTORIC DF–9E PAN- (B) an assessment of the progress made in paragraph (B) or (C), as the case may be, for THER AIRCRAFT TO WOMEN achieving the goals and objectives of the the period during which the housing units AIRFORCE SERVICE PILOTS MU- strategy set forth in the plan. are undergoing such conversion, and shall be SEUM. (3) No report is required under this sub- paid under the same provisions of subpara- (a) AUTHORITY TO CONVEY.—The Secretary section after the Secretary submits under graph (D) or (E) as the agency was paid in of the Navy may convey, without consider- this subsection a report containing a dec- the prior fiscal year. ation, to the Women Airforce Service Pilots laration that the goals and objectives set ‘‘(ii) CONVERSION OF MILITARY HOUSING Museum in Quartzsite, Arizona (in this section referred to as the ‘‘W.A.S.P. museum’’), forth in the strategy have been achieved. UNITS TO PRIVATE HOUSING DESCRIBED.—For Subtitle E—Other Matters purposes of clause (i), ‘conversion of military all right, title, and interest of the United States in and to a DF–9E Panther aircraft SEC. 1061. CONTINUED APPLICABILITY OF EXPIR- housing units to private housing’ means the (Bureau Number 125316). The conveyance ING GOVERNMENTWIDE INFORMA- conversion of military housing units to pri- TION SECURITY REQUIREMENTS TO vate housing units pursuant to subchapter shall be made by means of a conditional deed THE DEPARTMENT OF DEFENSE. IV of chapter 169 of title 10, United States of gift. (b) CONDITION OF AIRCRAFT.—The aircraft (a) IN GENERAL.—Chapter 131 of title 10, Code, or pursuant to any other related provi- United States Code, is amended by inserting shall be conveyed under subsection (a) in ‘‘as sion of law.’’. is’’ condition. The Secretary is not required after section 2224 the following new section: (b) COTERMINOUS MILITARY SCHOOL DIS- to repair or alter the condition of the air- ‘‘§ 2224a. Information security: continued ap- TRICTS.—Section 8003(a) of the Elementary craft before conveying ownership of the air- plicability of expiring Governmentwide re- and Secondary Education Act of 1965 (20 craft. quirements to the Department of Defense U.S.C. 7703(a)) is amended by adding at the (c) REVERTER UPON BREACH OF CONDI- end the following: ‘‘(a) IN GENERAL.—The provisions of sub- TIONS.—The Secretary shall include in the chapter II of chapter 35 of title 44 shall con- ‘‘(6) COTERMINOUS MILITARY SCHOOL DIS- instrument of conveyance of the aircraft tinue to apply with respect to the Depart- TRICTS.—For purposes of computing the under subsection (a)— ment of Defense, notwithstanding the expira- amount of a payment for a local educational (1) a condition that the W.A.S.P. museum tion of authority under section 3536 of such agency for children described in paragraph not convey any ownership interest in, or title. (1)(D)(i), the Secretary shall consider such transfer possession of, the aircraft to any ‘‘(b) RESPONSIBILITIES.—In administering children to be children described in para- other party without the prior approval of the the provisions of subchapter II of chapter 35 graph (1)(B) if the agency is a local edu- Secretary; and of title 44 with respect to the Department of cational agency whose boundaries are the (2) a condition that if the Secretary deter- Defense after the expiration of authority same as a Federal military installation.’’. mines at any time that the W.A.S.P. mu- under section 3536 of such title, the Sec- SEC. 1065. DISCLOSURE OF INFORMATION ON seum has conveyed an ownership interest in, retary of Defense shall perform the duties SHIPBOARD HAZARD AND DEFENSE or transferred possession of, the aircraft to PROJECT TO DEPARTMENT OF VET- set forth in that subchapter for the Director any other party without the prior approval of the Office of Management and Budget.’’. ERANS AFFAIRS. (a) PLAN FOR DISCLOSURE OF INFORMA- of the Secretary, all right, title, and interest (b) CLERICAL AMENDMENT.—The table of in and to the aircraft, including any repair sections at the beginning of such chapter is TION.—Not later than 90 days after the date of the enactment of this Act, the Secretary or alteration of the aircraft, shall revert to amended by inserting after the item relating the United States, and the United States to section 2224 the following new item: of Defense shall submit to Congress and the Secretary of Veterans Affairs a comprehen- shall have the right of immediate possession ‘‘2224a. Information security: continued ap- sive plan for the review, declassification, and of the aircraft. plicability of expiring Govern- submittal to the Department of Veterans Af- (d) CONVEYANCE AT NO COST TO THE UNITED mentwide requirements to the fairs of all medical records and information STATES.—The conveyance of the aircraft Department of Defense.’’. of the Department of Defense on the Ship- under subsection (a) shall be made at no cost SEC. 1062. ACCEPTANCE OF VOLUNTARY SERV- board Hazard and Defense (SHAD) project of to the United States. Any costs associated ICES OF PROCTORS FOR ADMINIS- with the conveyance, costs of determining TRATION OF ARMED SERVICES VO- the Navy that are relevant to the provision of benefits by the Secretary of Veterans Af- compliance with subsection (b), and costs of CATIONAL APTITUDE BATTERY. operation and maintenance of the aircraft Section 1588(a) of title 10, United States fairs to members of the Armed Forces who conveyed shall be borne by the W.A.S.P. mu- Code, is amended by adding at the end the participated in that project. seum. following new paragraph: (b) PLAN REQUIREMENTS.—(1) The records and information covered by the plan under (e) ADDITIONAL TERMS AND CONDITIONS.— ‘‘(6) Voluntary services as a proctor for the The Secretary may require such additional administration of the Armed Services Voca- subsection (a) shall be the records and information necessary to permit the identifica- terms and conditions in connection with a tional Aptitude Battery.’’. conveyance under this section as the Sec- SEC. 1063. EXTENSION OF AUTHORITY FOR SEC- tion of members of the Armed Forces who were or may have been exposed to chemical retary considers appropriate to protect the RETARY OF DEFENSE TO SELL AIR- interests of the United States. CRAFT AND AIRCRAFT PARTS FOR or biological agents as a result of the Ship- USE IN RESPONDING TO OIL SPILLS. board Hazard and Defense project. SEC. 1067. REWARDS FOR ASSISTANCE IN COM- BATING TERRORISM. (a) FOUR-YEAR EXTENSION.—Subsection (2) The plan shall provide for completion of (a) AUTHORITY.—Chapter 3 of title 10, (a)(1) of section 740 of the Wendell H. Ford all activities contemplated by the plan not United States Code, is amended by inserting Aviation Investment and Reform Act for the later than one year after the date of the en- after section 127a the following new section: 21st Century (Public Law 106–181; 114 Stat. actment of this Act. 173; 10 U.S.C. 2576 note) is amended by strik- (c) REPORTS ON IMPLEMENTATION.—(1) Not ‘‘§ 127b. Rewards for assistance in combating ing ‘‘September 30, 2002’’ and inserting ‘‘Sep- later than 90 days after the date of the enact- terrorism tember 30, 2006’’. ment of this Act, and every 90 days there- ‘‘(a) AUTHORITY.—The Secretary of Defense (b) ADDITIONAL REPORT.—Subsection (f) of after until completion of all activities con- may pay a monetary reward to a person for such section is amended by striking ‘‘March templated by the plan under subsection (a), providing United States personnel with in- 31, 2002’’ and inserting ‘‘March 31, 2006’’. the Secretary of Defense shall submit to formation or nonlethal assistance that is SEC. 1064. AMENDMENTS TO IMPACT AID PRO- Congress and the Secretary of Veterans Af- beneficial to— GRAM. fairs a report on progress in the implementa- ‘‘(1) an operation of the armed forces con- (a) ELIGIBILITY FOR HEAVILY IMPACTED tion of the plan during the 90-day period end- ducted outside the United States against LOCAL EDUCATIONAL AGENCIES AFFECTED BY ing on the date of such report. international terrorism; or

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6405 ‘‘(2) force protection of the armed forces. ‘‘(1) The term ‘military welfare society’ ‘‘CHAPTER 1201—[RESERVED]’’; and ‘‘(b) MAXIMUM AMOUNT.—The amount of a means the following: (2) by inserting the following: reward paid to a recipient under this section ‘‘(A) The Army Emergency Relief Society. ‘‘CHAPTER 1201—KOREAN WAR VETERANS may not exceed $200,000. ‘‘(B) The Navy-Marine Corps Relief Soci- ASSOCIATION, INCORPORATED ‘‘(c) DELEGATION TO COMMANDER OF COM- ety. BATANT COMMAND.—(1) The Secretary of De- ‘‘(C) The Air Force Aid Society, Inc. ‘‘Sec. fense may delegate to the commander of a ‘‘(2) The term ‘services’ includes lighting, ‘‘120101. Organization. combatant command authority to pay a re- heating, cooling, electricity, office furniture, ‘‘120102. Purposes. ward under this section in an amount not in office machines and equipment, telephone ‘‘120103. Membership. excess of $50,000. and other information technology services ‘‘120104. Governing body. ‘‘(2) A commander to whom authority to (including installation of lines and equip- ‘‘120105. Powers. ‘‘120106. Restrictions. pay rewards is delegated under paragraph (1) ment, connectivity, and other associated ‘‘120107. Duty to maintain corporate and tax- may further delegate authority to pay a re- services), and security systems (including in- exempt status. ward under this section in an amount not in stallation and other associated expenses).’’. ‘‘120108. Records and inspection. excess of $2,500. (b) CLERICAL AMENDMENT.—The table of ‘‘120109. Service of process. ‘‘(c) COORDINATION.—(1) The Secretary of sections at the beginning of such chapter is ‘‘120110. Liability for acts of officers and Defense, in consultation with the Secretary amended by adding at the end the following agents. of State and the Attorney General, shall pre- new item: ‘‘120111. Annual report. scribe policies and procedures for offering ‘‘2566. Space and services: provision to mili- ‘‘§ 120101. Organization and paying rewards under this section, and tary welfare societies.’’. otherwise for administering the authority ‘‘(a) FEDERAL CHARTER.—Korean War Vet- SEC. 1069. COMMENDATION OF MILITARY CHAP- under this section, that ensure that the pay- LAINS. erans Association, Incorporated (in this ment of a reward under this section does not (a) FINDINGS.—Congress finds the fol- chapter, the ‘corporation’), incorporated in duplicate or interfere with the payment of a lowing: the State of New York, is a federally char- reward authorized by the Secretary of State (1) Military chaplains have served with tered corporation. or the Attorney General. those who fought for the cause of freedom ‘‘(b) EXPIRATION OF CHARTER.—If the cor- ‘‘(2) The Secretary of Defense shall coordi- since the founding of the Nation. poration does not comply with the provisions nate with the Secretary of State regarding (2) Military chaplains and religious support of this chapter, the charter granted by sub- any payment of a reward in excess of $100,000 personnel of the Armed Forces have served section (a) expires. under this section. with distinction as uniformed members of ‘‘§ 120102. Purposes ‘‘(d) PERSONS NOT ELIGIBLE.—The following the Armed Forces in support of the Nation’s persons are not eligible to receive an award ‘‘The purposes of the corporation are as defense missions during every conflict in the under this section: provided in its articles of incorporation and history of the United States. ‘‘(1) A citizen of the United States. include— (3) 400 United States military chaplains ‘‘(2) An employee of the United States. ‘‘(1) organizing, promoting, and maintain- have died in combat, some as a result of di- ‘‘(3) An employee of a contractor of the ing for benevolent and charitable purposes rect fire while ministering to fallen Ameri- United States. an association of persons who have seen hon- cans, while others made the ultimate sac- ‘‘(e) ANNUAL REPORT.—(1) Not later than 60 orable service in the Armed Forces during days after the end of each fiscal year, the rifice as a prisoner of war. the Korean War, and of certain other per- Secretary of Defense shall submit to the (4) Military chaplains currently serve in sons; Committees on Armed Services and the Com- humanitarian operations, rotational deploy- ‘‘(2) providing a means of contact and committees on Appropriations of the Senate and ments, and in the war on terrorism. munication among members of the corpora- the House of Representatives a report on the (5) Religious organizations make up the tion; administration of the rewards program dur- very fabric of religious diversity and rep- ‘‘(3) promoting the establishment of, and ing that fiscal year. resent unparalleled levels of freedom of con- establishing, war and other memorials com- ‘‘(2) The report for a fiscal year shall in- science, speech, and worship that set the memorative of persons who served in the clude information on the total amount ex- United States apart from any other nation Armed Forces during the Korean War; and pended during that fiscal year to carry out on Earth. ‘‘(4) aiding needy members of the corpora- this section, including— (6) Religious organizations have richly tion, their wives and children, and the wid- ‘‘(A) a specification of the amount, if any, blessed the uniformed services by sending ows and children of persons who were mem- expended to publicize the availability of re- clergy to comfort and encourage all persons bers of the corporation at the time of their wards; and of faith in the Armed Forces. death. ‘‘(B) with respect to each award paid dur- (7) During the sinking of the USS Dor- ‘‘§ 120103. Membership ing that fiscal year— chester in February 1943 during World War II, four chaplains (Reverend Fox, Reverend ‘‘Eligibility for membership in the cor- ‘‘(i) the amount of the reward; poration, and the rights and privileges of ‘‘(ii) the recipient of the reward; and Poling, Father Washington, and Rabbi Goode) gave their lives so that others might members of the corporation, are as provided ‘‘(iii) a description of the information or in the bylaws of the corporation. assistance for which the reward was paid, to- live. ‘‘§ 120104. Governing body gether with an assessment of the signifi- (8) All military chaplains aid and assist cance of the information or assistance. members of the Armed Forces and their fam- ‘‘(a) BOARD OF DIRECTORS.—The board of di- ‘‘(3) The Secretary may submit the report ily members with the challenging issues of rectors of the corporation, and the respon- in classified form if the Secretary deter- today’s world. sibilities of the board of directors, are as pro- mines that it is necessary to do so. (9) The current war against terrorism has vided in the articles of incorporation of the ‘‘(f) DETERMINATIONS BY THE SECRETARY.— brought to the shores of the United States corporation. A determination by the Secretary under this new threats and concerns that strike at the ‘‘(b) OFFICERS.—The officers of the corpora- section shall be final and conclusive and beliefs and emotions of Americans. tion, and the election of the officers of the shall not be subject to judicial review.’’. (10) Military chaplains must, as never be- corporation, are as provided in the articles of (b) CLERICAL AMENDMENT.—The table of fore, deal with the spiritual well-being of the incorporation. sections at the beginning of such chapter is members of the Armed Forces and their fam- ‘‘§ 120105. Powers ilies. amended by inserting after the item relating ‘‘The corporation has only the powers pro- (b) COMMENDATION.—Congress, on behalf of to section 127a the following new item: vided in its bylaws and articles of incorpora- the Nation, expresses its appreciation for the ‘‘127b. Rewards for assistance in com- tion filed in each State in which it is incor- outstanding contribution that all military bating terrorism.’’. porated. chaplains make to the members of the SEC. 1068. PROVISION OF SPACE AND SERVICES Armed Forces and their families. ‘‘§ 120106. Restrictions TO MILITARY WELFARE SOCIETIES. (c) PRESIDENTIAL PROCLAMATION.—The ‘‘(a) STOCK AND DIVIDENDS.—The corpora- (a) AUTHORITY TO PROVIDE SPACE AND President is authorized and requested to tion may not issue stock or declare or pay a SERVICES.—Chapter 152 of title 10, United issue a proclamation calling on the people of dividend. States Code, is amended by adding at the end the United States to recognize the distin- ‘‘(b) POLITICAL ACTIVITIES.—The corpora- the following new section: guished service of the Nation’s military tion, or a director or officer of the corpora- ‘‘§ 2566. Space and services: provision to mili- chaplains. tion as such, may not contribute to, support, tary welfare societies SEC. 1070. GRANT OF FEDERAL CHARTER TO KO- or participate in any political activity or in ‘‘(a) AUTHORITY TO PROVIDE SPACE AND REAN WAR VETERANS ASSOCIATION, any manner attempt to influence legislation. SERVICES.—The Secretary of a military de- INCORPORATED. ‘‘(c) LOAN.—The corporation may not make partment may provide, without charge, (a) GRANT OF CHARTER.—Part B of subtitle a loan to a director, officer, or employee of space and services under the jurisdiction of II of title 36, United States Code, is the corporation. that Secretary to a military welfare society. amended— ‘‘(d) CLAIM OF GOVERNMENTAL APPROVAL OR ‘‘(b) DEFINITIONS.—In this section: (1) by striking the following: AUTHORITY.—The corporation may not claim

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 S6406 CONGRESSIONAL RECORD — SENATE July 8, 2002 congressional approval, or the authority of (1) by striking ‘‘and’’ at the end of subpara- TITLE XII—MATTERS RELATING TO the United States, for any of its activities. graph (B); OTHER NATIONS ‘‘§ 120107. Duty to maintain corporate and (2) by striking the comma at the end of Subtitle A—Cooperative Threat Reduction tax-exempt status subparagraph (C) and inserting ‘‘; and’’; and With States of the Former Soviet Union ‘‘(a) CORPORATE STATUS.—The corporation (3) by inserting after subparagraph (C) the SEC. 1201. SPECIFICATION OF COOPERATIVE shall maintain its status as a corporation in- following new subparagraph: THREAT REDUCTION PROGRAMS corporated under the laws of the State of ‘‘(D) an employee paid from non- AND FUNDS. New York. appropriated funds referred to in section (a) SPECIFICATION OF CTR PROGRAMS.—For ‘‘(b) TAX-EXEMPT STATUS.—The corpora- 2105(c) of this title;’’. purposes of section 301 and other provisions tion shall maintain its status as an organiza- SEC. 1105. INCREASED MAXIMUM PERIOD OF AP- of this Act, Cooperative Threat Reduction tion exempt from taxation under the Inter- POINTMENT UNDER THE EXPERI- programs are the programs specified in sec- nal Revenue Code of 1986 (26 U.S.C. 1 et seq.). MENTAL PERSONNEL PROGRAM FOR tion 1501(b) of the National Defense Author- ‘‘§ 120108. Records and inspection SCIENTIFIC AND TECHNICAL PER- ization Act for Fiscal Year 1997 (Public Law SONNEL. 104–201; 110 Stat. 2731; 50 U.S.C. 2362 note). ‘‘(a) RECORDS.—The corporation shall Section 1101(c)(1) of the Strom Thurmond (b) FISCAL YEAR 2003 COOPERATIVE THREAT keep— National Defense Authorization Act for Fis- REDUCTION FUNDS DEFINED.—As used in this ‘‘(1) correct and complete records of ac- cal Year 1999 (Public Law 105–261; 112 Stat. title, the term ‘‘fiscal year 2003 Cooperative count; 2140; 5 U.S.C. 3104 note) is amended by strik- Threat Reduction funds’’ means the funds ‘‘(2) minutes of the proceedings of its mem- ing ‘‘4 years’’ and inserting ‘‘5 years’’. appropriated pursuant to the authorization bers, board of directors, and committees hav- SEC. 1106. QUALIFICATION REQUIREMENTS FOR of appropriations in section 301 for Coopera- ing any of the authority of its board of directive Threat Reduction programs. tors; and EMPLOYMENT IN DEPARTMENT OF DEFENSE PROFESSIONAL ACCOUNT- (c) AVAILABILITY OF FUNDS.—Funds appro- ‘‘(3) at its principal office, a record of the ING POSITIONS. priated pursuant to the authorization of ap- names and addresses of its members entitled (a) PROFESSIONAL CERTIFICATION.—The Sec- propriations in section 301 for Cooperative to vote on matters relating to the corpora- retary of Defense may prescribe regulations Threat Reduction programs shall be avail- tion. that require a person employed in a profes- able for obligation for three fiscal years. ‘‘(b) INSPECTION.—A member entitled to SEC. 1202. FUNDING ALLOCATIONS. vote on matters relating to the corporation, sional accounting position within the De- (a) FUNDING FOR SPECIFIC PURPOSES.—Of or an agent or attorney of the member, may partment of Defense to be a certified public accountant and that apply the requirement the $416,700,000 authorized to be appropriated inspect the records of the corporation for to the Department of Defense for fiscal year any proper purpose, at any reasonable time. to all such positions or to selected positions, as the Secretary considers appropriate. 2003 in section 301(a)(23) for Cooperative ‘‘§ 120109. Service of process (b) WAIVERS AND EXEMPTIONS.—(1) The Sec- Threat Reduction programs, not more than ‘‘The corporation shall have a designated retary may include in the regulations impos- the following amounts may be obligated for agent in the District of Columbia to receive ing a requirement under subsection (a), as the purposes specified: service of process for the corporation. Notice the Secretary considers appropriate— (1) For strategic offensive arms elimi- to or service on the agent is notice to or (A) any exemption from the requirement; nation in Russia, $70,500,000. service on the Corporation. and (2) For strategic nuclear arms elimination ‘‘§ 120110. Liability for acts of officers and (B) authority to waive the requirement. in Ukraine, $6,500,000. agents (2) The Secretary shall include in the regu- (3) For weapons of mass destruction infra- ‘‘The corporation is liable for the acts of lations an exemption for persons employed structure elimination in Ukraine, $8,800,000. its officers and agents acting within the in positions covered by the requirement be- (4) For weapons of mass destruction infra- scope of their authority. fore the date of the enactment of this Act. structure elimination in Kazakhstan, $9,000,000. ‘‘§ 120111. Annual report (c) EXCLUSIVE AUTHORITY.—No requirement ‘‘The corporation shall submit an annual imposed under subsection (a), and no waiver (5) For weapons transportation security in report to Congress on the activities of the or exemption provided in the regulations Russia, $19,700,000. corporation during the preceding fiscal year. pursuant to subsection (b), shall be subject (6) For weapons storage security in Russia, The report shall be submitted at the same to review or approval by the Office of Per- $40,000,000. time as the report of the audit required by sonnel Management. (7) For weapons of mass destruction proliferation prevention in the former Soviet section 10101 of this title. The report may (d) DEFINITION.—For the purposes of this Union, $40,000,000. not be printed as a public document.’’. section, the term ‘‘professional accounting (8) For biological weapons proliferation (b) CLERICAL AMENDMENT.—The table of position’’ means a position in the GS–510, prevention activities in the former Soviet chapters at the beginning of subtitle II of GS–511, or GS–505 series for which profes- Union, $55,000,000. title 36, United States Code, is amended by sional accounting duties are prescribed. (9) For chemical weapons destruction in striking the item relating to chapter 1201 (e) EFFECTIVE DATE.—This section shall Russia, $133,600,000. and inserting the following new item: take effect 120 days after the date of the en- (10) For activities designated as Other As- ‘‘1201. Korean War Veterans Associa- actment of this Act. tion, Incorporated ...... 120101’’. sessments/Administrative Support, SEC. 1107. HOUSING BENEFITS FOR UNACCOM- $14,700,000. TITLE XI—DEPARTMENT OF DEFENSE PANIED TEACHERS REQUIRED TO (11) For defense and military contacts, CIVILIAN PERSONNEL POLICY LIVE AT GUANTANAMO BAY NAVAL STATION, CUBA. $18,900,000. SEC. 1101. EXTENSION OF AUTHORITY TO PAY (b) REPORT ON OBLIGATION OR EXPENDITURE Section 7(b) of the Defense Department SEVERANCE PAY IN A LUMP SUM. OF FUNDS FOR OTHER PURPOSES.—No fiscal Section 5595(i)(4) of title 5, United States Overseas Teachers Pay and Personnel Prac- year 2003 Cooperative Threat Reduction Code, is amended by striking ‘‘October 1, tices Act (20 U.S.C. 905(b)) is amended— funds may be obligated or expended for a 2003’’ and inserting ‘‘October 1, 2006’’. (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and purpose other than a purpose listed in para- SEC. 1102. EXTENSION OF VOLUNTARY SEPARA- (2) by adding at the end the following new graphs (1) through (11) of subsection (a) until TION INCENTIVE PAY AUTHORITY. paragraph: 30 days after the date that the Secretary of Section 5597(e) of title 5, United States ‘‘(2)(A) A teacher assigned to teach at Defense submits to Congress a report on the Code, is amended by striking ‘‘September 30, Guantanamo Bay Naval Station, Cuba, who purpose for which the funds will be obligated 2003’’ and inserting ‘‘September 30, 2006’’. is not accompanied at such station by any or expended and the amount of funds to be SEC. 1103. EXTENSION OF COST-SHARING AU- dependent— obligated or expended. Nothing in the pre- THORITY FOR CONTINUED FEHBP ‘‘(i) shall be offered for lease any available ceding sentence shall be construed as author- COVERAGE OF CERTAIN PERSONS military family housing at such station that izing the obligation or expenditure of fiscal AFTER SEPARATION FROM EMPLOY- is suitable for occupancy by the teacher and MENT. year 2003 Cooperative Threat Reduction is not needed to house members of the armed Section 8905a(d)(4)(B) of title 5, United funds for a purpose for which the obligation forces and dependents accompanying them or States Code, is amended— or expenditure of such funds is specifically other civilian personnel and any dependents (1) by striking ‘‘October 1, 2003’’ both prohibited under this title or any other pro- accompanying them; and places it appears and inserting ‘‘October 1, vision of law. ‘‘(ii) for any period for which such housing (c) LIMITED AUTHORITY TO VARY INDIVIDUAL 2006’’; and is leased to the teacher, shall receive a quar- AMOUNTS.—(1) Subject to paragraph (2), in (2) by striking ‘‘February 1, 2004’’ in clause ters allowance in the amount determined any case in which the Secretary of Defense (ii) and inserting ‘‘February 1, 2007’’. under paragraph (1). determines that it is necessary to do so in SEC. 1104. ELIGIBILITY OF NONAPPROPRIATED FUNDS EMPLOYEES TO PARTICI- ‘‘(B) A teacher is entitled to the quarters the national interest, the Secretary may ob- PATE IN THE FEDERAL EMPLOYEES allowance in accordance with subparagraph ligate amounts appropriated for fiscal year LONG-TERM CARE INSURANCE PRO- (A)(ii) without regard to whether other Gov- 2003 for a purpose listed in any of the para- GRAM. ernment furnished quarters are available for graphs in subsection (a) in excess of the Section 9001(1) of title 5, United States occupancy by the teacher without charge to amount specifically authorized for such pur- Code, is amended— the teacher.’’. pose.

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6407 (2) An obligation of funds for a purpose covered by such budget, a request for Cooper- SEC. 1204. WAIVER OF LIMITATIONS ON ASSIST- stated in any of the paragraphs in subsection ative Threat Reduction funds in the fiscal ANCE UNDER PROGRAMS TO FACILI- (a) in excess of the specific amount author- year covered by such budget in an amount TATE COOPERATIVE THREAT RE- ized for such purpose may be made using the equal to the amount so obligated. The re- DUCTION AND NONPROLIFERATION. (a) ASSISTANCE UNDER COOPERATIVE authority provided in paragraph (1) only quest shall also set forth the Cooperative THREAT REDUCTION ACT OF 1993.—Section 1203 after— Threat Reduction program or programs for of the Cooperative Threat Reduction Act of (A) the Secretary submits to Congress no- which such funds would otherwise have been 1993 (title XII of Public Law 103–160; 107 Stat. tification of the intent to do so together obligated, but for obligation under sub- 1778; 22 U.S.C. 5952) is amended by adding at with a complete discussion of the justifica- section (b). (3) Amounts authorized to be appropriated the end the following new subsection: tion for doing so; and ‘‘(e) WAIVER OF RESTRICTIONS.—(1) The re- (B) 15 days have elapsed following the date pursuant to a request under paragraph (2) shall be available for the Cooperative Threat strictions in subsection (d) shall cease to of the notification. apply to a state for a year if the President SEC. 1203. AUTHORIZATION OF USE OF COOPERA- Reduction program or programs set forth in the request under the second sentence of submits to the Speaker of the House of Rep- TIVE THREAT REDUCTION FUNDS resentative and the President pro tempore of that paragraph. FOR PROJECTS AND ACTIVITIES the Senate a written certification that the OUTSIDE THE FORMER SOVIET (e) LIMITATION ON OBLIGATION OF FUNDS.— UNION. Except as provided in subsection (f), the Sec- waiver of such restrictions in such year is (a) COOPERATIVE THREAT REDUCTION PRO- retary may not obligate and expend Coopera- important to the national security interests GRAMS AND FUNDS.—For purposes of this sec- tive Threat Reduction funds for a project or of the United States, together with a report tion: activity under subsection (b) until 30 days containing the following: (1) Cooperative Threat Reduction programs after the date on which the Secretary sub- ‘‘(A) A description of the activity or activi- are— mits to the congressional defense commit- ties that prevent the President from certi- (A) the programs specified in section tees a report on the purpose for which the fying that the state is committed to the 1501(b) of the National Defense Authorization funds will be obligated and expended, and the matters set forth in subsection (d) in such Act for Fiscal Year 1997 (Public Law 104–201; amount of the funds to be obligated and ex- year as otherwise provided for in that sub- 110 Stat. 2731; 50 U.S.C. 2362 note); and pended. section. (B) any other similar programs, as des- (f) EXCEPTION.—(1) The Secretary may obli- ‘‘(B) A description of the strategy, plan, or ignated by the Secretary of Defense, to ad- gate and expend Cooperative Threat Reduc- policy of the President for promoting the dress critical emerging proliferation threats tion funds for a project or activity under commitment of the state to such matters, in the states of the former Soviet Union that subsection (b) without regard to subsection notwithstanding the waiver. ‘‘(2) The matter included in the report jeopardize United States national security. (e) if the Secretary determines that a crit- under paragraph (1) shall be submitted in un- (2) Cooperative Threat Reduction funds, for ical emerging proliferation threat warrants classified form, but may include a classified a fiscal year, are the funds authorized to be immediate obligation and expenditure of annex.’’. appropriated for Cooperative Threat Reduc- such funds. (b) ADMINISTRATION OF RESTRICTIONS ON tion programs for that fiscal year. (2) Not later than 72 hours after first obli- ASSISTANCE.—Subsection (d) of that section (b) AUTHORIZATION OF USE OF CTR FUNDS gating funds for a project or activity under is amended— FOR THREAT REDUCTION ACTIVITIES OUTSIDE paragraph (1), the Secretary shall submit to (1) by striking ‘‘any year’’ and inserting THE FORMER SOVIET UNION.—(1) Notwith- the congressional defense committees a re- ‘‘any fiscal year’’; and standing any other provision of law and sub- port containing a detailed justification for (2) by striking ‘‘that year’’ and inserting ject to the succeeding provisions of this sec- the obligation of funds. The report on a ‘‘such fiscal year’’. project or activity shall include the fol- tion, the Secretary of Defense may obligate (c) ELIGIBILITY REQUIREMENTS UNDER lowing: and expend Cooperative Threat Reduction FREEDOM SUPPORT ACT.—Section 502 of the funds for fiscal year 2003, or Cooperative (A) A description of the critical emerging FREEDOM Support Act (Public Law 102–511; Threat Reduction funds for a fiscal year be- proliferation threat to be addressed, or the 106 Stat. 3338; 22 U.S.C. 5852) is amended— fore fiscal year 2003 that remain available for long-standing United States nonproliferation (1) by striking ‘‘Funds’’ and inserting ‘‘(a) goal to be achieved, by the project or activ- obligation as of the date of the enactment of ELIGIBILITY.—Except as provided in sub- this Act, for proliferation threat reduction ity. section (b), funds’’; and projects and activities outside the states of (B) A description of the agreement, if any, (2) by adding at the end the following new the former Soviet Union if the Secretary de- under which the funds will be used, including subsection: termines that such projects and activities whether or not the agreement provides that ‘‘(b) WAIVER OF ELIGIBILITY REQUIRE- will— the funds will not be used for purposes con- MENTS.—(1) Funds may be obligated for a fis- (A) assist the United States in the resolu- trary to the national security interests of cal year under subsection (a) for assistance tion of critical emerging proliferation the United States. or other programs and activities for an inde- threats; or (C) A description of the contracting proc- pendent state of the former Soviet Union (B) permit the United States to take ad- ess, if any, that will be used in the imple- that does not meet one or more of the re- vantage of opportunities to achieve long- mentation of the project or activity. quirements for eligibility under paragraphs standing United States nonproliferation (D) An analysis of the effect of the obliga- (1) through (4) of that subsection if the Presi- goals. tion of funds for the project or activity on dent certifies in writing to the Congress that (2) The amount that may be obligated ongoing Cooperative Threat Reduction pro- the waiver of such requirements in such fis- under paragraph (1) in any fiscal year for grams. cal year is important to the national secu- projects and activities described in that (E) An analysis of the need for additional rity interests of the United States. paragraph may not exceed $50,000,000. or follow-up threat reduction assistance, in- ‘‘(2) At the time of the exercise of the au- (c) AUTHORIZED USES OF FUNDS.—The au- cluding whether or not the need for such as- thority in paragraph (1) with respect to an thority under subsection (b) to obligate and sistance justifies the establishment of a new independent state of the former Soviet Union expend Cooperative Threat Reduction funds cooperative threat reduction program or pro- for a fiscal year, the President shall submit for a project or activity includes authority grams to account for such assistance. to the congressional defense committees a to provide equipment, goods, and services for (F) A description of the mechanisms to be report on the following: the project or activity, but does not include used by the Secretary to assure that proper ‘‘(A) A description of the activity or activi- authority to provide cash directly to the audits and examinations of the project or ac- ties that prevent the President from certi- project or activity. tivity are carried out. fying that the state is committed to each (d) SOURCE AND REPLACEMENT OF FUNDS (g) REPORT ON ESTABLISHMENT OF NEW CO- matter in subsection (a) in such fiscal year USED.—(1) The Secretary shall, to the max- OPERATIVE THREAT REDUCTION PROGRAMS.— to which the waiver under paragraph (1) ap- imum extent practicable, ensure that funds (1) If the Secretary employs the authority in plies. for projects and activities under subsection subsection (b) in any two fiscal years, the ‘‘(B) A description of the strategy, plan, or (b) are derived from funds that would other- Secretary shall submit to Congress a report policy of the President for promoting the wise be obligated for a range of Cooperative on the advisability of establishing one or commitment of the state to each such mat- Threat Reduction programs, so that no par- more new cooperative threat reduction pro- ter, notwithstanding the waiver. ticular Cooperative Threat Reduction programs to account for projects and activities ‘‘(3) In this subsection, the term ‘congres- gram is the exclusive or predominant source funded using such authority. sional defense committees’ means— of funds for such projects and activities. (2) The report required by paragraph (1) ‘‘(A) the Committee on Armed Services and (2) If the Secretary obligates Cooperative shall be submitted along with the budget jus- the Committee on Appropriations of the Sen- Threat Reduction funds under subsection (b) tification materials in support of the Depart- ate; and in a fiscal year, the first budget of the Presi- ment of Defense budget (as submitted with ‘‘(B) the Committee on Armed Services and dent that is submitted under section 1105(a) the budget of the President under section the Committee on Appropriations of the of title 31, United States Code, after such fis- 1105(a) of title 31, United States Code) in the House of Representatives.’’. cal year shall set forth, in addition to any first budget submitted after the end of the (d) EFFECTIVE DATE.—The amendments other amounts requested for Cooperative two consecutive fiscal years referred to in made by this section shall take effect on Oc- Threat Reduction programs in the fiscal year that paragraph. tober 1, 2002.

VerDate 11-MAY-2000 03:10 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 S6408 CONGRESSIONAL RECORD — SENATE July 8, 2002

SEC. 1205. RUSSIAN TACTICAL NUCLEAR WEAP- ‘‘(2) The term ‘coalition’ means an ad hoc ‘‘(c) LIMITATION ON FUNDING FOR PROJECTS ONS. arrangement between or among the United OTHER THAN RADIOLOGICAL PROJECTS.—Not (a) FINDINGS.—The Congress makes the fol- States and one or more other nations for more than 20 percent of the amount made lowing findings: common action.’’. available for the program under subsection (1) Al Qaeda and other terrorist organiza- (b) CLERICAL AMENDMENT.—The table of (a) in any fiscal year may be available for tions, in addition to rogue states, are known sections at the beginning of such chapter 6 is projects under the program other than to be working to acquire weapons of mass de- amended by adding at the end the following projects on radiological matters. struction, and particularly nuclear war- new item: ‘‘(d) ANNUAL REPORT.—(1) Not later than heads. ‘‘169. Administrative support and services March 1, 2003, and each year thereafter, the (2) The largest and least secure potential for coalition liaison officers.’’. Secretary of Defense shall submit to Con- source of nuclear warheads for terrorists or gress a report on activities under the pro- rogue states is Russia’s arsenal of nonstra- SEC. 1212. USE OF WARSAW INITIATIVE FUNDS FOR TRAVEL OF OFFICIALS FROM gram under subsection (a) during the pre- tegic or ‘‘tactical’’ nuclear warheads, which PARTNER COUNTRIES. ceding fiscal year. according to unclassified estimates numbers Section 1051(b) of title 10, United States ‘‘(2) The report on the program for a fiscal from 7,000 to 12,000 warheads. Security at Code, is amended— year under paragraph (1) shall include the Russian nuclear weapon storage sites is in- (1) in paragraph (1), by striking ‘‘paragraph following: sufficient, and tactical nuclear warheads are (2)’’ and inserting ‘‘paragraphs (2) and (3)’’; ‘‘(A) A description of the activities carried more vulnerable to terrorist or rogue state (2) by redesignating paragraph (3) as para- out under the program during that fiscal acquisition due to their smaller size, greater graph (4); and year, including a separate description of portability, and greater numbers compared (3) by inserting after paragraph (2) the fol- each project under the program. to Russian strategic nuclear weapons. lowing new paragraph (3): ‘‘(B) A statement of the amounts obligated (3) Russia’s tactical nuclear warheads were ‘‘(3) In the case of defense personnel of a and expended for the program during that not covered by the START treaties or the re- country that is participating in the Partner- fiscal year, set forth in aggregate and by cent Moscow Treaty. Russia is not legally ship for Peace program of the North Atlantic project. bound to reduce its tactical nuclear stock- Treaty Organization (NATO), expenses au- ‘‘(C) A statement of the life cycle costs of pile and the United States has no inspection thorized to be paid under subsection (a) may each project, including the life cycle costs of rights regarding Russia’s tactical nuclear ar- be paid in connection with travel of per- such project as of the end of that fiscal year senal. sonnel to the territory of any of the coun- and an estimate of the total life cycle costs ENSE OF THE SENATE.—(1) One of the (b) S tries participating in the Partnership for of such project upon completion of such most likely nuclear weapon attack scenarios Peace program or of any of the NATO mem- project. against the United States would involve det- ber countries.’’. ‘‘(D) A statement of the participants in the onation of a stolen Russian tactical nuclear SEC. 1213. SUPPORT OF UNITED NATIONS-SPON- activities carried out under the program dur- warhead smuggled into the country. ing that fiscal year, including the elements (2) It is a top national security priority of SORED EFFORTS TO INSPECT AND MONITOR IRAQI WEAPONS ACTIVI- of the Department of Defense and the mili- the United States to accelerate efforts to ac- TIES. tary departments or agencies of other coun- count for, secure, and reduce Russia’s stock- (a) LIMITATION ON AMOUNT OF ASSISTANCE tries. pile of tactical nuclear warheads and associ- IN FISCAL YEAR 2003.—The total amount of ‘‘(E) A description of the contributions of ated fissile material. the assistance for fiscal year 2003 that is pro- (3) This imminent threat warrants a spe- the military departments and agencies of cial nonproliferation initiative. vided by the Secretary of Defense under sec- other countries to the activities carried out (c) REPORT.—Not later than 30 days after tion 1505 of the Weapons of Mass Destruction under the program during that fiscal year, enactment of this Act, the President shall Control Act of 1992 (22 U.S.C. 5859a) as activi- including any financial or other contribu- report to Congress on efforts to reduce the ties of the Department of Defense in support tions to such activities.’’. particular threats associated with Russia’s of activities under that Act may not exceed (2) The table of sections at the beginning of tactical nuclear arsenal and the outlines of a $15,000,000. that subchapter is amended by adding at the special initiative related to reducing the (b) EXTENSION OF AUTHORITY TO PROVIDE end the following new item: threat from Russia’s tactical nuclear stock- ASSISTANCE.—Subsection (f) of section 1505 of ‘‘2350m. Arctic and Western Pacific Environ- pile. the Weapons of Mass Destruction Control mental Cooperation Program.’’. Act of 1992 (22 U.S.C. 5859a) is amended by Subtitle B—Other Matters (b) REPEAL OF SUPERSEDED AUTHORITY ON striking ‘‘2002’’ and inserting ‘‘2003’’. SEC. 1211. ADMINISTRATIVE SUPPORT AND SERV- ARCTIC MILITARY COOPERATION PROGRAM.— ICES FOR COALITION LIAISON OFFI- SEC. 1214. ARCTIC AND WESTERN PACIFIC ENVI- Section 327 of the Strom Thurmond National CERS. RONMENTAL COOPERATION PRO- Defense Authorization Act for Fiscal Year GRAM. (a) AUTHORITY.—Chapter 6 of title 10, 1999 (Public Law 105–261; 112 Stat. 1965) is re- (a) IN GENERAL.—(1) Subchapter II of chap- United States Code, is amended by adding at pealed. the end the following new section: ter 138 of title 10, United States Code, is amended by adding at the end the following SEC. 1215. DEPARTMENT OF DEFENSE HIV/AIDS ‘‘§ 169. Administrative support and services new section: PREVENTION ASSISTANCE PRO- for coalition liaison officers GRAM. ‘‘§ 2350m. Arctic and Western Pacific Environ- ‘‘(a) AUTHORITY.—The Secretary of Defense (a) EXPANSION OF PROGRAM.—The Sec- may provide administrative services and mental Cooperation Program retary of Defense is authorized to expand, in support for the performance of duties by any ‘‘(a) AUTHORITY TO CONDUCT PROGRAM.— accordance with this section, the Depart- liaison officer of another nation involved in The Secretary of Defense may, with the con- ment of Defense program of HIV/AIDS pre- a coalition while the liaison officer is as- currence of the Secretary of State, conduct vention educational activities undertaken in signed temporarily to the headquarters of a on a cooperative basis with countries located connection with the conduct of United combatant command, component command, in the Arctic and Western Pacific regions a States military training, exercises, and hu- or subordinate operational command of the program of environmental activities pro- manitarian assistance in sub-Saharan Afri- United States in connection with the plan- vided for in subsection (b) in such regions. can countries. ning for or conduct of a coalition operation. The program shall be known as the ‘Arctic (b) ELIGIBLE COUNTRIES.—The Secretary ‘‘(b) TRAVEL, SUBSISTENCE, AND OTHER EX- and Western Pacific Environmental Coopera- may carry out the program in all eligible PENSES.—The Secretary may pay the travel, tion Program’. countries. A country shall be eligible for ac- subsistence, and similar personal expenses of ‘‘(b) PROGRAM ACTIVITIES.—(1) Except as tivities under the program if the country— a liaison officer of a developing country in provided in paragraph (2), activities under (1) is a country suffering a public health connection with the assignment of that liai- the program under subsection (a) may in- crisis (as defined in subsection (e)); and son officer to the headquarters of a combat- clude cooperation and assistance on environ- (2) participates in the military-to-military ant command as described in subsection (a) mental matters in the Arctic and Western contacts program of the Department of De- if the assignment is requested by the com- Pacific regions among elements of the De- fense. mander of the combatant command. partment of Defense and the military depart- (c) PROGRAM ACTIVITIES.—The Secretary ‘‘(c) REIMBURSEMENT.—To the extent that ments or agencies of countries located in shall provide for the activities under the the Secretary determines appropriate, the such regions. program— Secretary may provide the services and sup- ‘‘(2) Activities under the program may not (1) to focus, to the extent possible, on mili- port authorized under subsections (a) and (b) include activities relating to the following: tary units that participate in peace keeping with or without reimbursement from (or on ‘‘(A) The conduct of any peacekeeping ex- operations; and behalf of) the recipients. ercise or other peacekeeping-related activity (2) to include HIV/AIDS-related voluntary ‘‘(d) DEFINITIONS.—In this section: with the Russian Federation. counseling and testing and HIV/AIDS-related ‘‘(1) The term ‘administrative services and ‘‘(B) The provision of housing. surveillance. support’ includes base or installation sup- ‘‘(C) The provision of assistance to pro- (d) AUTHORIZATION OF APPROPRIATIONS.— port services, office space, utilities, copying mote environmental restoration. (1) IN GENERAL.—Of the amount authorized services, fire and police protection, and com- ‘‘(D) The provision of assistance to pro- to be appropriated by section 301(a)(22) to the puter support. mote job retraining. Department of Defense for operation and

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6409 maintenance of the Defense Health Program, cerning the transfer of militarily sensitive and an assessment of the impact of projected $30,000,000 may be available for carrying out and dual-use technologies. activities for the next two years, including the program described in subsection (a) as (c) REPORTING REQUIREMENT.— transfers of technology, on China’s economic expanded pursuant to this section. (1) IN GENERAL.—Not later than April 1, and military capabilities. (2) AVAILABILITY OF FUNDS.—Amounts ap- 2004, and every two years thereafter, the Sec- (F) Any recommendations on improving propriated pursuant to paragraph (1) are au- retary of State, shall submit a report to Con- the monitoring of the activities of the Com- thorized to remain available until expended. gress, in both classified and unclassified mission by the Secretaries of Defense and (e) COUNTRY SUFFERING A PUBLIC HEALTH form, on the implementation of the Agree- State. CRISIS DEFINED.—In this section, the term ment and activities thereunder. (3) CONSULTATION PRIOR TO SUBMISSION OF ‘‘country suffering a public health crisis’’ (2) REPORT ELEMENTS.—Each report under REPORTS.—The Secretary of State shall pre- means a country that has rapidly rising this subsection shall provide an evaluation pare the report in consultation with the Sec- rates of incidence of HIV/AIDS or in which of the benefits of the Agreement to the Chi- retaries of Commerce, Defense, and Energy, HIV/AIDS is causing significant family, com- nese economy, military, and defense indus- the Directors of the National Science Foun- munity, or societal disruption. trial base and shall include the following: dation and the Federal Bureau of Investiga- SEC. 1216. MONITORING IMPLEMENTATION OF (A) An accounting of all activities con- tion, and the intelligence community. THE 1979 UNITED STATES-CHINA AGREEMENT ON COOPERATION IN ducted under the Agreement since the pre- DIVISION B—MILITARY CONSTRUCTION SCIENCE AND TECHNOLOGY. vious report, and a projection of activities to AUTHORIZATIONS (a) RESPONSIBILITIES OF THE OFFICE OF be undertaken in the next two years. SEC. 2001. SHORT TITLE. SCIENCE AND TECHNOLOGY COOPERATION.—The (B) An estimate of the costs to the United This division may be cited as the ‘‘Military Office of Science and Technology Coopera- States to administer the Agreement within Construction Authorization Act for Fiscal tion of the Department of State shall mon- the period covered by the report. Year 2003’’. itor the implementation of the 1979 United (C) An assessment of how the Agreement States-China Agreement on Cooperation in has influenced the policies of the People’s TITLE XXI—ARMY Science and Technology and its protocols (in Republic of China toward scientific and tech- SEC. 2101. AUTHORIZED ARMY CONSTRUCTION this section referred to as the ‘‘Agreement’’), nological cooperation with the United AND LAND ACQUISITION PROJECTS. and keep a systematic account of the proto- States. (a) INSIDE THE UNITED STATES.—Using cols thereto. The Office shall coordinate the (D) An analysis of the involvement of Chi- amounts appropriated pursuant to the au- activities of all agencies of the United States nese nuclear weapons and military missile thorization of appropriations in section Government that carry out cooperative ac- specialists in the activities of the Joint 2104(a)(1), the Secretary of the Army may activities under the Agreement. Commission. quire real property and carry out military (b) GUIDELINES.—The Secretary of State (E) A determination of the extent to which construction projects for the installations shall ensure that all activities conducted the activities conducted under the Agree- and locations inside the United States, and under the Agreement and its protocols comment have enhanced the military and indus- in the amounts, set forth in the following ply with applicable laws and regulations con- trial base of the People’s Republic of China, table: Army: Inside the United States

State Installation or location Amount

Alabama ...... Anniston Army Depot ...... $1,900,000 Fort Rucker ...... $6,550,000 Alaska ...... Fort Richardson ...... $15,000,000 Fort Wainwright ...... $111,010,000 Arkansas ...... Pine Bluff Arsenal ...... $18,937,000 Colorado ...... Fort Carson ...... $1,100,000 District of Columbia ...... Walter Reed Army Medical Center ...... $17,500,000 Georgia ...... Fort Benning ...... $74,250,000 Fort Stewart/Hunter Army Air Field ...... $26,000,000 Hawaii ...... Schofield Barracks ...... $191,000,000 Kansas ...... Fort Leavenworth ...... $3,150,000 Fort Riley ...... $74,000,000 Kentucky ...... Blue Grass Army Depot ...... $5,500,000 Fort Campbell ...... $99,000,000 Fort Knox ...... $6,800,000 Louisiana ...... Fort Polk ...... $31,000,000 Maryland ...... Fort Detrick ...... $19,700,000 Missouri ...... Fort Leonard Wood ...... $15,500,000 New York ...... Fort Drum ...... $1,500,000 North Carolina ...... Fort Bragg ...... $85,500,000 Oklahoma ...... Fort Sill ...... $35,000,000 Pennsylvania ...... Letterkenny Army Depot ...... $1,550,000 Texas ...... Fort Hood ...... $69,000,000 Washington ...... Fort Lewis ...... $53,000,000

Total ...... $964,697,000

(b) OUTSIDE THE UNITED STATES.—Using 2104(a)(2), the Secretary of the Army may ac- and locations outside the United States, and amounts appropriated pursuant to the au- quire real property and carry out military in the amounts, set forth in the following thorization of appropriations in section construction projects for the installations table: Army: Outside the United States

Country Installation or location Amount

Belgium ...... Chievres Air Base ...... $13,600,000 Germany ...... Area Support Group, Bamberg ...... $17,200,000 Darmstadt ...... $3,500,000 Grafenwoehr ...... $69,866,000 Heidelberg ...... $8,300,000 Landstuhl ...... $2,400,000 Mannheim ...... $43,350,000 Schweinfurt ...... $2,000,000 Italy ...... Vicenza ...... $34,700,000 Korea ...... Camp Carroll ...... $20,000,000 Camp Castle ...... $6,800,000 Camp Hovey ...... $25,000,000 Camp Humphreys ...... $36,000,000

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 S6410 CONGRESSIONAL RECORD — SENATE July 8, 2002 Army: Outside the United States—Continued

Country Installation or location Amount

Camp Tango ...... $12,600,000 Camp Henry ...... $10,200,000 K16 Airfield ...... $40,000,000 Qatar ...... Qatar ...... $8,600,000

Total ...... $354,116,000

(c) UNSPECIFIED WORLDWIDE.—Using the 2104(a)(3), the Secretary of the Army may ac- and location, and in the amount, set forth in amounts appropriated pursuant to the au- quire real property and carry out military the following table: thorization of appropriations in section construction projects for the installation Army: Unspecified Worldwide

Location Installation Amount

Unspecified Worldwide ...... Unspecified Worldwide ...... $4,000,000

SEC. 2102. FAMILY HOUSING. 2104(a)(6)(A), the Secretary of the Army may facilities) at the installations, for the pur- (a) CONSTRUCTION AND ACQUISITION.—Using construct or acquire family housing units poses, and in the amounts set forth in the amounts appropriated pursuant to the au- (including land acquisition and supporting following table: thorization of appropriations in section Army: Family Housing

State or Country Installation or location Purpose Amount

Alaska ...... Fort Wainwright ...... 38 Units ...... $17,752,000 Arizona ...... Yuma Proving Ground ...... 33 Units ...... $6,100,000 Germany ...... Stuttgart ...... 1 Units ...... $990,000 Korea ...... Yongsan ...... 10 Units ...... $3,100,000

Total: ...... $27,942,000

(b) PLANNING AND DESIGN.—Using amounts 2833 of title 10, United States Code), D. Spence National Defense Authorization appropriated pursuant to the authorization $1,122,274,000. Act for Fiscal Year 2001, as enacted into law of appropriations in section 2104(a)(6)(A), the (7) For the construction of phase 4 of an by Public Law 106–398; 114 Stat. 1654A–389), Secretary of the Army may carry out archi- ammunition demilitarization facility at $13,000,000. tectural and engineering services and con- Pueblo Chemical Activity, Colorado, author- (13) For the construction of phase 3 of a struction design activities with respect to ized by section 2401(a) of the Military Con- barracks complex, Butner Road, at Fort the construction or improvement of family struction Authorization Act for Fiscal Year Bragg, North Carolina, authorized by section housing units in an amount not to exceed 1997 (division B of Public Law 104–201; 110 2101(a) of the Military Construction Author- $15,653,000. Stat. 2775), as amended by section 2406 of the ization Act for Fiscal Year 2001, $50,000,000. SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY Military Construction Authorization Act for HOUSING UNITS. Fiscal Year 2000 (division B of Public Law (14) For the construction of phase 2 of a Subject to section 2825 of title 10, United 106–65; 113 Stat. 839) and section 2108 of this barracks complex, D Street, at Fort Richard- States Code, and using amounts appropriated Act, $38,000,000. son, Alaska, authorized by section 2101(a) of pursuant to the authorization of appropria- (8) For the construction of phase 5 of an the Military Construction Authorization Act tions in section 2104(a)(6)(A), the Secretary ammunition demilitarization facility at for Fiscal Year 2002 (115 Stat. 1280), of the Army may improve existing military Newport Army Depot, Indiana, authorized by $21,000,000. family housing units in an amount not to ex- section 2401(a) of the Military Construction (15) For the construction of phase 2 of a ceed $239,751,000. Authorization Act for Fiscal Year 1999 (divi- barracks complex, Nelson Boulevard, at Fort SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, sion B of Public Law 105–261; 112 Stat. 2193), Carson, Colorado, authorized by section ARMY. $61,494,000. 2101(a) of the Military Construction Author- (a) IN GENERAL.—Funds are hereby author- (9) For the construction of phase 5 of an ization Act for Fiscal Year 2002, as amended ized to be appropriated for fiscal years begin- ammunition demilitarization facility at Ab- by section 2105 of this Act, $42,000,000. ning after September 30, 2002, for military erdeen Proving Ground, Maryland, author- (16) For the construction of phase 2 of a construction, land acquisition, and military ized by section 2401(a) of the Military Con- basic combat trainee complex at Fort Jack- family housing functions of the Department struction Authorization Act for Fiscal Year son, South Carolina, authorized by section of the Army in the total amount of 1999, as amended by section 2406 of the Mili- 2101(a) of the Military Construction Author- $3,007,345,000 as follows: tary Construction Authorization Act for Fis- ization Act for Fiscal Year 2002, as amended (1) For military construction projects in- cal Year 2002 (division B of Public Law 107– by section 2105 of this Act, $39,000,000. side the United States authorized by section 107; 115 Stat. 1299), $30,600,000. (17) For the construction of phase 2 of a 2101(a), $758,497,000. (10) For the construction of phase 3 of an barracks complex, 17th and B Streets at Fort (2) For military construction projects out- ammunition demilitarization facility at Blue side the United States authorized by section Grass Army Depot, Kentucky, authorized by Lewis, Washington, authorized by section 2101(b), $354,116,000. section 2401(a) of the Military Construction 2101(a) of the Military Construction Author- (3) For military construction projects at Authorization Act for Fiscal Year 2000 (113 ization Act for Fiscal Year 2002, $50,000,000. unspecified worldwide locations authorized Stat. 835), as amended by section 2405 of the (b) LIMITATION ON TOTAL COST OF CON- by section 2101(c), $4,000,000. Military Construction Authorization Act for STRUCTION PROJECTS.—Notwithstanding the (4) For unspecified minor construction Fiscal Year 2002 (115 Stat. 1298) and section cost variations authorized by section 2853 of projects authorized by section 2805 of title 10, 2106 of this Act, $10,300,000. title 10, United States Code, and any other United States Code, $20,500,000. (11) For the construction of phase 3 of an cost variation authorized by law, the total (5) For architectural and engineering serv- ammunition demilitarization support facil- ices and construction design under section ity at Blue Grass Army Depot, Kentucky, au- cost of all projects carried out under section 2807 of title 10, United States Code, thorized by section 2401(a) of the Military 2101 of this Act may not exceed— $148,864,000. Construction Authorization Act for Fiscal (1) the total amount authorized to be ap- (6) For military family housing functions: Year 2000, $8,300,000. propriated under paragraphs (1), (2), and (3) (A) For construction and acquisition, plan- (12) For the construction of phase 2 of Sad- of subsection (a); ning and design and improvement of military dle Access Road, Pohakoula Training Facil- (2) $18,000,000 (the balance of the amount family housing and facilities, $283,346,000. ity, Hawaii, authorized by section 2101(a) of authorized under section 2101(a) for construc- (B) For support of military family housing the Military Construction Authorization Act tion of a barracks complex, Main Post, at (including the functions described in section for Fiscal Year 2001 (division B of the Floyd Fort Benning, Georgia);

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00084 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6411 (3) $100,000,000 (the balance of the amount SEC. 2106. MODIFICATION OF AUTHORITY TO item relating to Pueblo Chemical Activity, authorized under section 2101(a) for construc- CARRY OUT CERTAIN FISCAL YEAR Colorado, by striking ‘‘$203,500,000’’ in the tion of a barracks complex, Capron Avenue, 2000 PROJECT. amount column and inserting ‘‘$261,000,000’’; at Schofield Barracks, Hawaii); (a) MODIFICATION.—The table in section and (4) $13,200,000 (the balance of the amount 2401(a) of the Military Construction Author- (2) by striking the amount identified as the authorized under section 2101(a) for construc- ization Act for Fiscal Year 2000 (division B of total in the amount column and inserting Public Law 106–65; 113 Stat. 835), as amended tion of a combined arms collective training ‘‘$607,454,000’’. by section 2405 of the Military Construction facility at Fort Riley, Kansas); Authorization Act for Fiscal Year 2002 (divi- (b) CONFORMING AMENDMENT.—Section (5) $50,000,000 (the balance of the amount sion B of Public Law 107–107; 115 Stat. 1298), 2406(b)(2) of that Act (110 Stat. 2779), as so authorized under section 2101(a) for construc- is further amended— amended, is further amended by striking tion of a barracks complex, Range Road, at (1) under the agency heading relating to ‘‘$203,500,000’’ and inserting ‘‘$261,000,000’’. Fort Campbell, Kentucky); and Chemical Demilitarization, in the item re- (6) $25,000,000 (the balance of the amount SEC. 2109. MODIFICATION OF AUTHORITY TO lating to Blue Grass Army Depot, Kentucky, CARRY OUT CERTAIN FISCAL YEAR authorized under section 2101(a) for construc- by striking ‘‘$254,030,000’’ in the amount col- 2001 PROJECT. tion of a consolidated maintenance complex umn and inserting ‘‘$290,325,000’’; and at Fort Sill, Oklahoma). The table in section 2101(b) of the Military (2) by striking the amount identified as the Construction Authorization Act for Fiscal (c) ADJUSTMENT.—The total amount au- total in the amount column and inserting Year 2001 (division B of the Floyd D. Spence thorized to be appropriated pursuant to para- ‘‘$748,245,000’’. National Defense Authorization Act for Fis- graphs (1) through (17) of subsection (a) is (b) CONFORMING AMENDMENT.—Section cal Year 2001, as enacted into law by Public the sum of the amounts authorized to be ap- 2405(b)(3) of that Act (113 Stat. 839), as so Law 106–398; 114 Stat. 1654A–390) is amended propriated in such paragraphs, reduced by— amended, is further amended by striking by striking ‘‘Camp Page’’ in the installation (1) $18,596,000, which represents savings re- ‘‘$231,230,000’’ and inserting ‘‘$267,525,000’’. or location column and inserting ‘‘Camp sulting from adjustments to foreign currency SEC. 2107. MODIFICATION OF AUTHORITY TO Stanley’’. exchange rates for military construction, CARRY OUT CERTAIN FISCAL YEAR military family housing construction, and 1999 PROJECT. SEC. 2110. PLANNING AND DESIGN FOR ANECHO- military family housing support outside the (a) MODIFICATION.—The table in section IC CHAMBER AT WHITE SANDS MIS- SILE RANGE, NEW MEXICO. United States; and 2401(a) of the Military Construction Author- (2) $29,350,000, which represents adjust- ization Act for Fiscal Year 1999 (division B of (a) PLANNING AND DESIGN.—The amount au- Public Law 105–261; 112 Stat. 2193) is ments for the accounting of civilian per- thorized to be appropriated by section amended— sonnel benefits. 2104(a)(5), for planning and design for mili- (1) under the agency heading relating to tary construction for the Army is hereby in- SEC. 2105. MODIFICATION OF AUTHORITY TO Chemical Demilitarization, in the item re- creased by $3,000,000, with the amount of the CARRY OUT CERTAIN FISCAL YEAR lating to Newport Army Depot, Indiana, by increase to be available for planning and de- 2002 PROJECTS. striking ‘‘$191,550,000’’ in the amount column sign for an anechoic chamber at White Sands (a) MODIFICATION.—The table in section and inserting ‘‘$293,853,000’’; and Missile Range, New Mexico. (2) by striking the amount identified as the 2101(a) of the Military Construction Author- (b) OFFSET.—The amount authorized to be ization Act for Fiscal Year 2002 (division B of total in the amount column and inserting appropriated by section 301(a)(1) for the Public Law 107-107; 115 Stat. 1281) is ‘‘$829,919,000’’. Army for operation and maintenance is here- (b) CONFORMING AMENDMENT.—Section amended— by reduced by $3,000,000, with the amount of 2404(b)(2) of that Act (112 Stat. 2196) is (1) in the item relating to Fort Carson, the reduction to be allocated to Base Oper- amended by striking ‘‘$162,050,000’’ and in- Colorado, by striking ‘‘$66,000,000’’ in the ations Support (Servicewide Support). amount column and inserting ‘‘$67,000,000’’; serting ‘‘$264,353,000’’. and SEC. 2108. MODIFICATION OF AUTHORITY TO TITLE XXII—NAVY (2) in the item relating to Fort Jackson, CARRY OUT CERTAIN FISCAL YEAR 1997 PROJECT. SEC. 2201. AUTHORIZED NAVY CONSTRUCTION South Carolina, by striking ‘‘$65,650,000’’ in AND LAND ACQUISITION PROJECTS. (a) MODIFICATION.—The table in section the amount column and inserting 2401(a) of the Military Construction Author- (a) INSIDE THE UNITED STATES.—Using ‘‘$68,650,000’’. ization Act for Fiscal Year 1997 (division B of amounts appropriated pursuant to the au- (b) CONFORMING AMENDMENTS.—Section Public Law 104–201; 110 Stat. 2775), as amend- thorization of appropriations in section 2104(b) of that Act (115 Stat. 1284) is ed by section 2406 of the Military Construc- 2204(a)(1), the Secretary of the Navy may ac- amended— tion Authorization Act for Fiscal Year 2000 quire real property and carry out military (1) in paragraph (3), by striking (division B of Public Law 106–65; 113 Stat. construction projects for the installations ‘‘$41,000,000’’ and inserting ‘‘$42,000,000’’; and 839), is further amended— and locations inside the United States, and (2) in paragraph (4), by striking (1) under the agency heading relating to in the amounts, set forth in the following ‘‘$36,000,000’’ and inserting ‘‘$39,000,000’’. Chemical Demilitarization Program, in the table:

Navy: Inside the United States

State Installation or location Amount

Arizona ...... Marine Corps Air Station, Yuma ...... $3,000,000 California ...... Marine Corps Air Station, Miramar ...... $8,700,000 Marine Corps Air Ground Combat Center, Twentynine Palms ...... $25,770,000 Marine Corps Base, Camp Pendleton ...... $104,200,000 Naval Air Station, Lemoore ...... $35,855,000 Naval Air Station, San Diego ...... $6,150,000 Naval Air Warfare Center, Point Mugu ...... $6,760,000 Naval Construction Battalion Center, Port Hueneme ...... $6,957,000 Naval PostGraduate School, Monterey ...... $2,020,000 Naval Station, San Diego ...... $12,210,000 Connecticut ...... Naval Submarine Base, New London ...... $7,880,000 District of Columbia ...... Marine Corps Base, Washington ...... $3,700,000 Naval District, Washington ...... $2,690,000 Florida ...... Eglin Air Force Base ...... $6,350,000 Naval Air Station, Jacksonville ...... $6,770,000 Naval Air Station, Mayport ...... $1,900,000 Naval Air Station, Pensacola ...... $990,000 Panama City ...... $10,700,000 Georgia ...... Naval Submarine Base, Kings Bay ...... $1,580,000 Hawaii ...... Ford Island ...... $19,400,000 Marine Corps Base, Hawaii ...... $9,500,000 Naval Station, Pearl Harbor ...... $14,690,000 Illinois ...... Naval Training Center, Great Lakes ...... $93,190,000 Maine ...... Naval Air Station, Brunswick ...... $9,830,000 Naval Shipyard, Portsmouth ...... $15,200,000 Maryland ...... Andrews Air Force Base ...... $9,680,000 Naval Surface Warfare Center, Carderock Division ...... $12,900,000 Mississippi ...... Naval Air Station, Meridian ...... $2,850,000 Naval Construction Battalion Center, Gulfport ...... $5,460,000

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 S6412 CONGRESSIONAL RECORD — SENATE July 8, 2002 Navy: Inside the United States—Continued

State Installation or location Amount

Naval Station, Pascagoula ...... $25,305,000 New Jersey ...... Naval Air Warfare Center, Lakehurst ...... $5,200,000 Naval Weapons Station, Earle ...... $5,600,000 North Carolina ...... Camp LeJeune ...... $5,370,000 Marine Corps Air Station, Cherry Point ...... $6,040,000 Marine Corps Air Station, New River ...... $6,920,000 Rhode Island ...... Naval Station, Newport ...... $9,030,000 South Carolina ...... Marine Corps Air Station, Beaufort ...... $13,700,000 Marine Corps Recruit Depot, Parris Island ...... $10,490,000 Naval Weapons Station, Charleston ...... $5,740,000 Texas ...... Naval Air Station, Kingsville ...... $6,210,000 Naval Station, Ingleside ...... $5,480,000 Virginia ...... Marine Corps Combat Development Command, Quantico ...... $19,554,000 Naval Amphibious Base, Little Creek ...... $9,770,000 Naval Air Station, Norfolk ...... $2,260,000 Naval Air Station, Oceana ...... $16,490,000 Naval Ship Yard, Norfolk ...... $36,470,000 Naval Station, Norfolk ...... $168,965,000 Naval Surface Warfare Center, Dahlgren ...... $15,830,000 Naval Weapons Station, Yorktown ...... $15,020,000 Washington ...... Naval Air Station, Whidbey Island ...... $17,580,000 Naval Magazine, Port Hadlock ...... $4,030,000 Naval Shipyard, Puget Sound ...... $54,132,000 Naval Station, Bremerton ...... $45,870,000 Naval Submarine Base, Bangor ...... $22,310,000 Strategic Weapons Facility, Bangor ...... $7,340,000 Various Locations ...... Host Nation Infrastructure ...... $1,000,000

Total ...... $988,588,000

(b) OUTSIDE THE UNITED STATES.—Using 2204(a)(2), the Secretary of the Navy may ac- side the United States, and in the amounts, amounts appropriated pursuant to the au- quire real property and carry out military set forth in the following table: thorization of appropriations in section construction projects for the locations out- Navy: Outside the United States

Country Installation or location Amount

Bahrain ...... Naval Support Activity, Bahrain ...... $25,970,000 Cuba ...... Naval Station, Guantanamo ...... $4,280,000 Diego Garcia ...... Diego Garcia, Naval Support Facility ...... $11,090,000 Greece ...... Naval Support Activity, Joint Headquarters Command, Larissa ...... $14,800,000 Guam ...... Commander, United States Naval Forces, Guam ...... $13,400,000 Iceland ...... Naval Air Station, Keflavik ...... $14,920,000 Italy ...... Naval Air Station, Sigonella ...... $66,960,000 Spain ...... Joint Headquarters Command, Madrid ...... $2,890,000 Naval Station, Rota ...... $18,700,000

Total ...... $173,010,000

SEC. 2202. FAMILY HOUSING. 2204(a)(5)(A), the Secretary of the Navy may facilities) at the installations, for the pur- (a) CONSTRUCTION AND ACQUISITION.—Using construct or acquire family housing units poses, and in the amounts set forth in the amounts appropriated pursuant to the au- (including land acquisition and supporting following table: thorization of appropriations in section Navy: Family Housing

State or Country Installation or location Purpose Amount

California ...... Naval Air Station, Lemoore ...... 178 Units ...... $40,981,000 Twentynine Palms ...... 76 Units ...... $19,425,000 Connecticut ...... Naval Submarine Base, New London ...... 100 Units ...... $24,415,000 Florida ...... Naval Station, Mayport ...... 1 Unit ...... $329,000 Hawaii ...... Marine Corps Base, Kaneohe Bay ...... 65 Units ...... $24,797,000 Mississippi ...... Naval Air Station, Meridian ...... 56 Units ...... $9,755,000 North Carolina ...... Marine Corps Base, Camp LeJeune ...... 317 Units ...... $43,650,000 Virginia ...... Marine Corps Base, Quantico ...... 290 Units ...... $41,843,000 Greece ...... Naval Support Activity Joint Headquarters Command, 2 Units ...... $1,232,000 Larissa. United Kingdom ...... Joint Maritime Facility, St. Mawgan ...... 62 Units ...... $18,524,000

Total ...... $224,951,000

(b) PLANNING AND DESIGN.—Using amounts family housing units in an amount not to ex- of the Navy may improve existing military appropriated pursuant to the authorization ceed $11,281,000. family housing units in an amount not to exceed $139,468,000. of appropriation in section 2204(a)(5)(A), the SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY Secretary of the Navy may carry out archi- HOUSING UNITS. SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, tectural and engineering services and con- Subject to section 2825 of title 10, United NAVY. struction design activities with respect to States Code, and using amounts appropriated (a) IN GENERAL.—Funds are hereby author- the construction or improvement of military pursuant to the authorization of appropria- ized to be appropriated for fiscal years begin- tions in section 2204(a)(5)(A), the Secretary ning after September 30, 2002, for military

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.028 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6413 construction, land acquisition, and military cost of all projects carried out under section struction Authorization Act for Fiscal Year family housing functions of the Department 2201 of this Act may not exceed— 2002 (division B of Public Law 107–107; 115 of the Navy in the total amount of (1) the total amount authorized to be ap- Stat. 1286) is amended— $2,478,174,000, as follows: propriated under paragraphs (1) and (2) of (1) in the item relating to Naval Station, (1) For military construction projects in- subsection (a): Norfolk, Virginia, by striking ‘‘$139,270,000’’ side the United States authorized by section (2) $8,345,000 (the balance of the amount au- in the amount column and inserting 2201(a), $932,123,000. thorized under section 2201(a) for a bachelors ‘‘$139,550,000’’; and (2) For military construction projects out- enlisted quarters shipboard ashore, Naval (2) by striking the amount identified as the side the United States authorized by section Station, Pascagoula, Mississippi); total in the amount column and inserting 2201(b), $170,440,000. (3) $48,120,000 (the balance of the amount ‘‘$1,059,030,000’’. (3) For unspecified minor construction authorized under section 2201(a) for a bach- (b) CONFORMING AMENDMENT.—Section projects authorized by section 2805 of title 10, elors enlisted quarters shipboard ashore, 2204(b)(2) of that Act (115 Stat. 1289) is United States Code, $23,262,000. Naval Station, Norfolk, Virginia); and amended by striking ‘‘$33,240,000’’ and insert- (4) For architectural and engineering serv- (4) $2,570,000 (the balance of the amount au- ing ‘‘$33,520,000’’. ices and construction design under section thorized under section 2201(b) for a quality of 2807 of title 10, United States Code, life support facility, Naval Air Station (c) MILITARY FAMILY HOUSING AT QUANTICO, $87,803,000. Sigonella, Italy). VIRGINIA.—The table in section 2202(a) of (5) For military family housing functions: (c) ADJUSTMENT.—The total amount au- that Act (115 Stat. 1287) is amended in the (A) For construction and acquisition, plan- thorized to be appropriated pursuant to para- item relating to Marine Corps Combat Devel- ning and design, and improvement of mili- graphs (1) through (6) of subsection (a) is the opment Command, Quantico, Virginia, by tary family housing and facilities, sum of the amounts authorized to be appro- striking ‘‘60 Units’’ in the purpose column $375,700,000. priated in such paragraphs, reduced by— and inserting ‘‘39 Units’’. (B) For support of military family housing (1) $3,992,000, which represents savings re- TITLE XXIII—AIR FORCE (including functions described in section 2833 sulting from adjustments to foreign currency of title 10, United States Code), $867,788,000. exchange rates for military construction, SEC. 2301. AUTHORIZED AIR FORCE CONSTRUC- (6) For replacement of a pier at Naval Sta- military family housing construction, and TION AND LAND ACQUISITION PROJECTS. tion, Norfolk, Virginia, authorized in section military family housing support outside the 2201(a) of the Military Construction Author- United States; and (a) INSIDE THE UNITED STATES.—Using ization Act for Fiscal Year 2002 (division B of (2) $10,470,000, which represents adjust- amounts appropriated pursuant to the au- Public Law 107–107; 115 Stat. 1287), as amendments for the accounting of civilian per- thorization of appropriations in section ed by section 2205 of this Act, $33,520,000. sonnel benefits. 2304(a)(1), the Secretary of the Air Force (b) LIMITATION ON TOTAL COST OF CON- SEC. 2205. MODIFICATION TO CARRY OUT CER- may acquire real property and carry out STRUCTION PROJECTS.—Notwithstanding the TAIN FISCAL YEAR 2002 PROJECTS. military construction projects for the instal- cost variations authorized by section 2853 of (a) MILITARY CONSTRUCTION PROJECT AT lations and locations inside the United title 10, United States Code, and any other NAVAL STATION, NORFOLK, VIRGINIA.—The States, and in the amounts, set forth in the cost variation authorized by law, the total table in section 2201(a) of the Military Con- following table:

Air Force: Inside the United States

State Installation or location Amount

Alaska ...... Clear Air Force Station ...... $14,400,000 Eielson Air Force Base ...... $41,100,000 Arizona ...... Davis-Monthan Air Force Base ...... $19,270,000 Arkansas ...... Little Rock Air Force Base ...... $25,600,000 California ...... Beale Air Force Base ...... $11,740,000 Travis Air Force Base ...... $23,900,000 Vandenberg Air Force Base ...... $10,500,000 Colorado ...... Buckley Air Force Base ...... $17,700,000 Peterson Air Force Base ...... $5,500,000 Schriever Air Force Base ...... $5,700,000 United States Air Force Academy ...... $4,200,000 District of Columbia ...... Bolling Air Force Base ...... $5,000,000 Florida ...... Eglin Air Force Base ...... $4,250,000 Hurlburt Field ...... $15,000,000 MacDill Air Force Base ...... $7,000,000 Georgia ...... Robins Air Force Base ...... $5,400,000 Warner-Robins Air Force Base ...... $24,000,000 Hawaii ...... Hickam Air Force Base ...... $1,350,000 Louisiana ...... Barksdale Air Force Base ...... $22,900,000 Maryland ...... Andrews Air Force Base ...... $9,600,000 Massachusetts ...... Fourth Cliff, Scituate ...... $9,500,000 Hanscom Air Force Base ...... $7,700,000 Mississippi ...... Keesler Air Force Base ...... $22,000,000 Nebraska ...... Offutt Air Force Base ...... $11,000,000 Nevada ...... Nellis Air Force Base ...... $56,850,000 New Jersey ...... McGuire Air Force Base ...... $24,631,000 New Mexico ...... Cannon Air Force Base ...... $4,650,000 Holloman Air Force Base ...... $4,650,000 Kirtland Air Force Base ...... $21,900,000 North Carolina ...... Pope Air Force Base ...... $9,700,000 Seymour Johnson Air Force Base ...... $10,600,000 North Dakota ...... Minot Air Force Base ...... $18,000,000 Ohio ...... Wright-Patterson Air Force Base ...... $35,400,000 Oklahoma ...... Altus Air Force Base ...... $14,800,000 Vance Air Force Base ...... $4,800,000 South Carolina ...... Shaw Air Force Base ...... $6,500,000 South Dakota ...... Ellsworth Air Force Base ...... $13,200,000 Texas ...... Goodfellow Air Force Base ...... $10,600,000 Lackland Air Force Base ...... $41,500,000 Sheppard Air Force Base ...... $16,000,000 Utah ...... Hill Air Force Base ...... $16,500,000 Virginia ...... Langley Air Force Base ...... $71,940,000 Wyoming ...... F.E. Warren Air Force Base ...... $15,000,000

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State Installation or location Amount

Total ...... $721,531,000

(b) OUTSIDE THE UNITED STATES.—Using 2304(a)(2), the Secretary of the Air Force lations and locations outside the United amounts appropriated pursuant to the au- may acquire real property and carry out States, and in the amounts, set forth in the thorization of appropriations in section military construction projects for the instal- following table: Air Force: Outside the United States

Country Installation or location Amount

Germany ...... Ramstein Air Base ...... $71,783,000 Guam ...... Andersen Air Force Base ...... $31,000,000 Italy ...... Aviano Air Base ...... $6,600,000 Japan ...... Kadena Air Base ...... $6,000,000 Korea ...... Osan Air Base ...... $15,100,000 Spain ...... Naval Station, Rota ...... $31,818,000 Turkey ...... Incirlik Air Base ...... $1,550,000 United Kingdom ...... Diego Garcia ...... $17,100,000 Royal Air Force, Fairford ...... $19,000,000 Royal Air Force, Lakenheath ...... $13,400,000 Wake Island ...... Wake Island ...... $24,900,000

Total ...... $238,251,000

(c) UNSPECIFIED WORLDWIDE.—Using the 2304(a)(3), the Secretary of the Air Force lation and location, and in the amount, set amounts appropriated pursuant to the au- may acquire real property and carry out forth in the following table: thorization of appropriations in section military construction projects for the instal- Air Force: Unspecified Worldwide

Location Installation Amount

Unspecified Worldwide ...... Classified Locations ...... $24,993,000

SEC. 2302. FAMILY HOUSING. 2304(a)(6)(A), the Secretary of the Air Force porting facilities) at the installations, for (a) CONSTRUCTION AND ACQUISITION.—Using may construct or acquire family housing the purposes, and in the amounts set forth in amounts appropriated pursuant to the au- units (including land acquisition and sup- the following table: thorization of appropriations in section Air Force: Family Housing

State or Country Installation or location Purpose Amount

Arizona ...... Luke Air Force Base ...... 140 Units ...... $18,954,000 California ...... Travis Air Force Base ...... 110 Units ...... $24,320,000 Colorado ...... Peterson Air Force Base ...... 2 Units ...... $959,000 United States Air Force Academy ...... 71 Units ...... $12,424,000 Delaware ...... Dover Air Force Base ...... 112 Units ...... $19,615,000 Florida ...... Eglin Air Force Base ...... Housing Office $597,000 Eglin Air Force Base ...... 134 Units ...... $15,906,000 MacDill Air Force Base ...... 96 Units ...... $18,086,000 Hawaii ...... Hickam Air Force Base ...... 96 Units ...... $29,050,000 Idaho ...... Mountain Home Air Force Base ...... 95 Units ...... $24,392,000 Kansas ...... McConnell Air Force Base ...... Housing Main- $1,514,000 tenance Facil- ity. Maryland ...... Andrews Air Force Base ...... 53 Units ...... $9,838,000 Andrews Air Force Base ...... 52 Units ...... $8,807,000 Mississippi ...... Columbus Air Force Base ...... Housing Office $412,000 Keesler Air Force Base ...... 117 Units ...... $16,605,000 Missouri ...... Whiteman Air Force Base ...... 22 Units ...... $3,977,000 Montana ...... Malmstrom Air Force Base ...... 18 Units ...... $4,717,000 New Mexico ...... Holloman Air Force Base ...... 101 Units ...... $20,161,000 North Carolina ...... Pope Air Force Base ...... Housing Main- $991,000 tenance Facil- ity. Seymour Johnson Air Force Base ...... 126 Units ...... $18,615,000 North Dakota ...... Grand Forks Air Force Base ...... 150 Units ...... $30,140,000 Minot Air Force Base ...... 112 Units ...... $21,428,000 Minot Air Force Base ...... 102 Units ...... $20,315,000 Oklahoma ...... Vance Air Force Base ...... 59 Units ...... $11,423,000 South Dakota ...... Ellsworth Air Force Base ...... Housing Main- $447,000 tenance Facil- ity. Ellsworth Air Force Base ...... 22 Units ...... $4,794,000 Texas ...... Dyess Air Force Base ...... 85 Units ...... $14,824,000 Randolph Air Force Base ...... Housing Main- $447,000 tenance Facil- ity. Randolph Air Force Base ...... 112 Units ...... $14,311,000 Virginia ...... Langley Air Force Base ...... Housing Office $1,193,000 Germany ...... Ramstein Air Force Base ...... 19 Units ...... $8,534,000

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State or Country Installation or location Purpose Amount

Korea ...... Osan Air Base ...... 113 Units ...... $35,705,000 Osan Air Base ...... Housing Supply $834,000 Warehouse. United Kingdom ...... Royal Air Force Lakenheath ...... Housing Office $2,203,000 and Mainte- nance Facil- ity.

Total ...... $416,438,000

(b) PLANNING AND DESIGN.—Using amounts (2) $7,100,000 (the balance of the amount au- the Secretary of the Air Force may carry out appropriated pursuant to the authorization thorized under section 2301(a) for construc- carry out a military construction project, in- of appropriations in section 2304(a)(6)(A), the tion of a consolidated base engineer complex cluding land acquisition relating thereto, for Secretary of the Air Force may carry out ar- at Altus Air Force Base, Oklahoma); and construction of a new air traffic control fa- chitectural and engineering services and (3) $5,000,000 (the balance of the amount au- cility at Dover Air Force Base, Delaware, in construction design activities with respect thorized under section 2301(a) for construc- the amount of $7,500,000. to the construction or improvement of mili- tion of a storm drainage system at F.E. War- (b) AUTHORIZATION OF APPROPRIATIONS.— tary family housing units in an amount not ren Air Force Base, Wyoming). The amount authorized to be appropriated to exceed $34,188,000. (c) ADJUSTMENT.—The total amount au- by section 2304(a), and by paragraph (1) of SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY thorized to be appropriated pursuant to para- that section, is hereby increased by HOUSING UNITS. graphs (1) through (6) of subsection (a) is the $7,500,000. Subject to section 2825 of title 10, Unites sum of the amounts authorized to be appro- (c) OFFSET.—The amount authorized to be States Code, and using amounts appropriated priated in such paragraphs, reduced by appropriated by section 301(a)(10) for oper- pursuant to the authorization of appropria- $19,063,000, which represents savings result- ation and maintenance for the Army Na- ing from adjustments to foreign currency ex- tions in section 2304(a)(6)(A), the Secretary tional Guard is hereby reduced by $7,500,000, change rates for military construction, mili- of the Air Force may improve existing mili- with the amount of the reduction to be allo- tary family housing construction, and military family housing units in an amount not cated to the Classified Network Program. tary family housing support outside the to exceed $226,068,000. United States. SEC. 2307. AVAILABILITY OF FUNDS FOR CON- SOLIDATION OF MATERIALS COM- SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, SEC. 2305. AUTHORITY FOR USE OF MILITARY AIR FORCE. PUTATIONAL RESEARCH FACILITY CONSTRUCTION FUNDS FOR CON- AT WRIGHT–PATTERSON AIR FORCE (a) IN GENERAL.—Funds are hereby author- STRUCTION OF PUBLIC ROAD NEAR BASE, OHIO. ized to be appropriated for fiscal years begin- AVIANO AIR BASE, ITALY, CLOSED (a) AVAILABILITY.—Of the amount author- ning after September 30, 2002, for military FOR FORCE PROTECTION PUR- ized to be appropriated by section 2304(a), construction, land acquisition, and military POSES. and paragraph (1) of that section, for the Air family housing functions of the Department (a) AUTHORITY TO USE FUNDS.—The Sec- Force and available for military construc- of the Air Force in the total amount of retary of the Air Force may, using amounts tion projects at Wright–Patterson Air Force $2,597,272,000, as follows: authorized to be appropriated by section Base, Ohio, $15,200,000 may be available for a (1) For military construction projects in- 2301(b), carry out a project to provide a pub- military construction project for consolida- side the United States authorized by section lic road, and associated improvements, to re- tion of the materials computational research 2301(a), $709,431,000. place a public road adjacent to Aviano Air facility at Wright–Patterson Air Force Base (2) For military construction projects out- Base, Italy, that has been closed for force (PNZHTV033301A). side the United States authorized by section protection purposes. (b) OFFSET.—(1) The amount authorized to 2301(b), $238,251,000. (b) SCOPE OF AUTHORITY.—(1) The authority be appropriated by section 301(a)(4) for the (3) For the military construction projects of the Secretary to carry out the project re- Air Force for operation and maintenance is at unspecified worldwide locations author- ferred to in subsection (a) shall include au- hereby reduced by $2,800,000, with the ized by section 2301(c), $24,993,000. thority as follows: amount of the reduction to be allocated to (4) For unspecified minor construction (A) To acquire property for the project for Recruiting and Advertising. projects authorized by section 2805 of title 10, transfer to a host nation authority. (2) Of the amount authorized to be appro- United States Code, $11,500,000. (B) To provide funds to a host nation au- priated by section 2304(a), and paragraph (1) (5) For architectural and engineering serv- thority to acquire property for the project. of that section, for the Air Force and avail- ices and construction design under section (C) To make a contribution to a host na- able for military construction projects at 2807 of title 10, United States Code, tion authority for purposes of carrying out Wright–Patterson Air Force Base— $81,416,000. the project. (A) the amount available for a dormitory is (6) For military housing functions: (D) To provide vehicle and pedestrian ac- hereby reduced by $10,400,000; and (A) For construction and acquisition, plan- cess to landowners effected by the project. (2) The acquisition of property using au- (B) the amount available for construction ning and design, and improvement of mili- thority in subparagraph (A) or (B) of para- of a Fully Contained Small Arms Range tary family housing and facilities, graph (1) may be made regardless of whether Complex is hereby reduced by $2,000,000. $676,694,000. or not ownership of such property will vest (B) For support of military family housing TITLE XXIV—DEFENSE AGENCIES in the United States. (including functions described in section 2833 (c) INAPPLICABILITY OF CERTAIN REAL PROP- SEC. 2401. AUTHORIZED DEFENSE AGENCIES of title 10, United States Code), $874,050,000. ERTY MANAGEMENT REQUIREMENT.—Section CONSTRUCTION AND LAND ACQUISI- (b) LIMITATION ON TOTAL COST OF CON- 2672(a)(1)(B) of title 10, United States Code, TION PROJECTS. STRUCTION PROJECTS.—Notwithstanding the shall not apply with respect to any acquisi- (a) INSIDE THE UNITED STATES.—Using cost variations authorized by section 2853 of tion of interests in land for purposes of the amounts appropriated pursuant to the au- title 10, United States Code, and any other project authorized by subsection (a). thorization of appropriations in section cost variation authorized by law, the total SEC. 2306. ADDITIONAL PROJECT AUTHORIZA- 2404(a)(1), the Secretary of Defense may ac- cost of all projects carried out under section TION FOR AIR TRAFFIC CONTROL quire real property and carry out military 2301 of this Act may not exceed— FACILITY AT DOVER AIR FORCE construction projects for the installations (1) the total amount authorized to be ap- BASE, DELAWARE. and locations inside the United States, and propriated under paragraphs (1), (2) and (3) of (a) PROJECT AUTHORIZED.—In addition to in the amounts, set forth in the following subsection (a); the projects authorized by section 2301(a), table: Defense Agencies: Inside the United States

Agency Installation or location Amount

Missile Defense Agency ...... Kauai, Hawaii ...... $23,400,000 Defense Intelligence Agency ...... Bolling Air Force Base, District of Columbia ...... $121,958,000 Defense Logistics Agency ...... Defense Supply Center, Columbus, Ohio ...... $5,021,000 Defense Supply Center, Richmond, Virginia ...... $5,500,000 Naval Air Station, New Orleans, Louisiana ...... $9,500,000 Travis Air Force Base, California ...... $16,000,000

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Agency Installation or location Amount

Defense Threat Reduction Agency ...... Fort Belvoir, Virginia ...... $76,388,000 Department of Defense Dependents Schools ...... Fort Bragg, North Carolina ...... $2,036,000 Fort Jackson, South Carolina ...... $2,506,000 Marine Corps Base, Camp LeJeune, North Carolina ...... $12,138,000 Marine Corps Base, Quantico, Virginia ...... $1,418,000 United States Military Academy, West Point, New York ...... $4,347,000 Joint Chiefs of Staff ...... Conus Various ...... $25,000,000 National Security Agency ...... Fort Meade, Maryland ...... $4,484,000 Special Operations Command ...... Fort Bragg, North Carolina ...... $30,800,000 Hurlburt Field, Florida ...... $11,100,000 Naval Amphibious Base, Little Creek, Virginia ...... $14,300,000 Stennis Space Center, Mississippi ...... $5,000,000 TRICARE Management Activity ...... Elmendorf Air Force Base, Alaska ...... $10,400,000 Hickam Air Force Base, Hawaii ...... $2,700,000 Washington Headquarters Services ...... Arlington, Virginia ...... $18,000,000 Washington Headquarters Services, District of Columbia ...... $2,500,000

Total ...... $404,496,000

(b) OUTSIDE THE UNITED STATES.—Using 2404(a)(2), the Secretary of Defense may ac- and locations outside the United States, and amounts appropriated pursuant to the au- quire real property and carry out military in the amounts, set forth in the following thorization of appropriations in section construction projects for the installations table: Defense Agencies: Outside the United States

Agency Installation or location Amount

Defense Logistics Agency ...... Andersen Air Force Base, Guam ...... $17,586,000 Lajes Field, Azores, Portugal ...... $19,000,000 Naval Forces Marianas Islands, Guam ...... $6,000,000 Naval Station, Rota, Spain ...... $23,400,000 Royal Air Force, Fairford, United Kingdom ...... $17,000,000 Yokota Air Base, Japan ...... $23,000,000 Department of Defense Dependents Schools ...... Kaiserslautern, Germany ...... $957,000 Lajes Field, Azores, Portugal ...... $1,192,000 Seoul, Korea ...... $31,683,000 Mons, Belgium ...... $1,573,000 Spangdahlem Air Base, Germany ...... $997,000 Vicenza, Italy ...... $2,117,000 TRICARE Management Activity ...... Naval Support Activity, Naples, Italy ...... $41,449,000 Spangdahlem Air Base, Germany ...... $39,629,000

Total ...... $225,583,000

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY 2804 of title 10, United States Code, (2) $26,200,000 (the balance of the amount HOUSING UNITS. $10,000,000. authorized under section 2401(a) for the con- Subject to section 2825 of title 10, United (5) For architectural and engineering serv- struction of the Defense Threat Reduction States Code, and using amounts appropriated ices and construction design under section Center, Fort Belvoir, Virginia). pursuant to the authorization of appropria- 2807 of title 10, United States Code, (c) ADJUSTMENT.—The total amount au- tions in section 2404(a)(8)(A), the Secretary $44,232,000. of Defense may improve existing military (6) For energy conservation projects authorized to be appropriated pursuant to para- family housing units in an amount not to ex- thorized by section 2403 of this Act, graphs (1) through (9) of subsection (a) is the ceed $5,480,000. $50,531,000. sum of the amounts authorized to be appropriated in such paragraphs, reduced by— SEC. 2403. ENERGY CONSERVATION PROJECTS. (7) For base closure and realignment activities as authorized by the Defense Base (1) $2,976,000, which represents savings re- Using amounts appropriated pursuant to Closure and Realignment Act of 1990 (part A sulting from adjustments to foreign currency the authorization of appropriations in sec- of title XXIX of Public Law 101–510; 10 U.S.C. exchange rates for military construction, tion 2404(a)(4), the Secretary of Defense may 2687 note), $545,138,000. military family housing construction, and carry out energy conservation projects under (8) For military family housing functions: military family housing support outside the section 2865 of title 10, United States Code, (A) For improvement of military family United States; and in the amount of $50,531,000. housing and facilities, $5,480,000. (2) $37,000, which represents adjustments SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, (B) For support of military family housing for the accounting of civilian personnel ben- DEFENSE AGENCIES. (including functions described in section 2833 efits. (a) IN GENERAL.—Funds are hereby author- of title 10, United States Code), $42,432,000. ized to be appropriated for fiscal years begin- (C) For credit to the Department of De- TITLE XXV—NORTH ATLANTIC TREATY ning after September 30, 2002, for military fense Family Housing Improvement Fund es- ORGANIZATION SECURITY INVESTMENT construction, land acquisition, and military tablished by section 2883(a)(1) of title 10, PROGRAM family housing functions of the Department United States Code, $2,000,000. of Defense (other than the military depart- (9) For payment of a claim against the SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS. ments) in the total amount of $1,316,972,000, Hospital Replacement project at Elmendorf as follows: Air Force Base, Alaska, $10,400,000. The Secretary of Defense may make con- (1) For military construction projects in- (b) LIMITATION ON TOTAL COST OF CON- tributions for the North Atlantic Treaty Or- side the United States authorized by section STRUCTION PROJECTS.—Notwithstanding the ganization Security Investment program as 2401(a), $367,896,000. cost variations authorized by section 2853 of provided in section 2806 of title 10, United (2) For military construction projects out- States Code, in an amount not to exceed the side the United States authorized by section title 10, United States Code, and any other sum of the amount authorized to be appro- 2401(b), $225,583,000. cost variation authorized by law, the total (3) For unspecified minor construction cost of all projects carried out under section priated for this purpose in section 2502 and projects under section 2805 of title 10, United 2401 of this Act may not exceed— the amount collected from the North Atlan- States Code, $16,293,000. (1) the total amount authorized to be ap- tic Treaty Organization as a result of con- (4) For contingency construction projects propriated under paragraphs (1) and (2) of struction previously financed by the United of the Secretary of Defense under section subsection (a); and States.

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.029 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6417 SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, (2) The amount available under paragraph section (b), all authorizations contained in NATO. (1) for the military construction project re- titles XXI through XXVI for military con- Funds are hereby authorized to be appro- ferred to in that paragraph is in addition to struction projects, land acquisition, family priated for fiscal years beginning after Sep- any other amounts available under this Act tember 30, 2002, for contributions by the Sec- housing projects and facilities, and contribu- for that project. tions to the North Atlantic Treaty Organiza- retary of Defense under section 2806 of title (c) OFFSET.—(1) The amount authorized to tion Security Investment program (and au- 10, United States Code, for the share of the be appropriated by section 201(2) for re- United States of the cost of projects for the search, development, test, and evaluation for thorizations of appropriations therefor) shall North Atlantic Treaty Organization Security the Navy is hereby reduced by $2,500,000, with expire on the later of— Investment program authorized by section the amount of the reduction to be allocated (1) October 1, 2005; or 2501, in the amount of $168,200,000. to Warfighter Sustainment Advanced Tech- (2) the date of the enactment of an Act au- TITLE XXVI—GUARD AND RESERVE nology (PE 0603236N). thorizing funds for military construction for FORCES FACILITIES (2) The amount authorized to be appro- fiscal year 2006. SEC. 2601. AUTHORIZED GUARD AND RESERVE priated by section 301(a)(6) for operation and (b) EXCEPTION.—Subsection (a) shall not CONSTRUCTION AND LAND ACQUISI- maintenance for the Army Reserve is hereby apply to authorizations for military con- TION PROJECTS. reduced by $6,000,000, with the amount of the There are authorized to be appropriated for reduction to be allocated to the Enhanced struction projects, land acquisition, family fiscal years beginning after September 30, Secure Communications Program. housing projects, and facilities, and con- 2002, for the costs of acquisition, architec- tributions to the North Atlantic Treaty Or- tural and engineering services, and construc- SEC. 2603. ADDITIONAL PROJECT AUTHORIZA- TION FOR COMPOSITE SUPPORT FA- ganization Security Investment program tion of facilities for the Guard and Reserve CILITY FOR ILLINOIS AIR NATIONAL (and authorizations of appropriations there- Forces, and for contributions there for, GUARD. for) for which appropriated funds have been under chapter 1803 of title 10, United States (a) INCREASE IN AUTHORIZATION OF APPRO- Code (including the cost of acquisition of obligated before the later of— PRIATIONS.—The amount authorized to be ap- (1) October 1, 2005; or land for those facilities), the following propriated by section 2601(3)(A) for the Air (2) the date of the enactment of an Act au- amounts: National Guard is hereby increased by thorized funds for fiscal year 2005 for mili- (1) For the Department of the Army— $10,000,000. tary construction projects, land acquisition, (A) for the Army National Guard of the (b) AVAILABILITY.—Of the amount author- United States, $186,588,000; and ized to be appropriated by section 2601(3)(A) family housing projects and facilities, and (B) for the Army Reserve, $62,992,000. for the Air National Guard, as increased by contributions to the North Atlantic Treaty (2) For the Department of the Navy, for the subsection (a), $10,000,000 may be available Organization Security Investment program. Naval and Marine Corps Reserve, $58,671,000. for a military construction project for a SEC. 2702. EXTENSION OF AUTHORIZATIONS OF (3) For the Department of the Air Force— Composite Support Facility for the 183rd (A) for the Air National Guard of the CERTAIN FISCAL YEAR 2000 Fighter Wing of the Illinois Air National PROJECTS. United States, $212,459,000; and Guard. (B) for the Air Force Reserve, $59,883,000. (c) OFFSET.—The amount authorized to be (a) EXTENSION OF CERTAIN PROJECTS.—Not- SEC. 2602. ARMY NATIONAL GUARD RESERVE appropriated by section 301(a)(5) for oper- withstanding section 2701 of the Military CENTER, LANE COUNTY, OREGON. ation and maintenance, defense-wide, is Construction Authorization Act for Fiscal (a) INCREASE IN AUTHORIZATION OF APPRO- hereby reduced by $10,000,000, with the Year 2000 (division B of Public Law 106–65; 113 PRIATIONS.—The amount authorized to be ap- amount of the reduction to be allocated to Stat. 841), authorizations set forth in the ta- propriated by section 2601(1)(A) for the Army amounts available for the Information Oper- National Guard of the United States is here- bles in subsection (b), as provided in section ations Program. by increased by $9,000,000. 2302 or 2601 of that Act, shall remain in effect (b) AVAILABILITY.—(1) Of the amount au- TITLE XXVII—EXPIRATION AND until October 1, 2003, or the date of the en- thorized to be appropriated by section EXTENSION OF AUTHORIZATIONS actment of an Act authorizing funds for mili- 2601(1)(A) for the Army National Guard of SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND tary construction for fiscal year 2004, which- the United States, as increased by subsection AMOUNTS REQUIRED TO BE SPECI- ever is later. (a), $9,000,000 may be available for a military FIED BY LAW. construction project for a Reserve Center in (a) EXPIRATION OF AUTHORIZATIONS AFTER (b) TABLES.—The tables referred to in sub- Lane County, Oregon. THREE YEARS.—Except as provided in subsection (a) are as follows: Air Force: Extension of 2000 Project Authorization

State Installation or location Project Amount

Oklahoma ...... Tinker Air Force Base ...... Replace Family $6,000,000 Housing (41 Units). Texas ...... Lackland Air Force Base ...... Dormitory ...... $5,300,000

Army National Guard: Extension of 2000 Project Authorization

State Installation or location Project Amount

Virginia ...... Fort Pickett ...... Multi-Purpose $13,500,000 Range Com- plex–Heavy.

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF Public Law 105–261; 112 Stat. 2199), authoriza- Stat. 1301), shall remain in effect until Octo- CERTAIN FISCAL YEAR 1999 tions set forth in the table in subsection (b), ber 1, 2003, or the date of the enactment of an PROJECTS. as provided in section 2302 of that Act and Act authorizing funds for military construc- (a) EXTENSION.—Notwithstanding section extended by section 2702 of the Military Con- tion for fiscal year 2004, whichever is later. 2701 of the Military Construction Authoriza- struction Authorization Act for Fiscal Year (b) TABLE.—The table referred to in sub- tion Act for Fiscal Year 1999 (division B of 2002 (division B of Public Law 107–107; 115 section (a) is as follows: Air Force: Extension of 1999 Project Authorizations

State Installation or location Project Amount

Delaware ...... Dover Air Force Base ...... Replace Family $8,988,000 Housing (55 Units). Florida ...... Patrick Air Force Base ...... Replace Family $9,692,000 Housing (46 Units).

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00091 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.029 pfrm12 PsN: S08PT1 S6418 CONGRESSIONAL RECORD — SENATE July 8, 2002 Air Force: Extension of 1999 Project Authorizations—Continued

State Installation or location Project Amount

New Mexico ...... Kirtland Air Force Base ...... Replace Family $6,400,000 Housing (37 Units). Ohio ...... Wright-Patterson Air Force Base ...... Replace Family $5,600,000 Housing (40 Units).

SEC. 2704. EFFECTIVE DATE. Subtitle B—Real Property and Facilities is developed and used in a manner appro- Titles XXI, XXII, XXIII, XXIV, XXV, Administration priate for purposes of this section. XXVI, and XXVII of this Act shall take ef- SEC. 2811. AGREEMENTS WITH PRIVATE ENTITIES ‘‘(5) The Secretary concerned may accept fect on the later of— TO ENHANCE MILITARY TRAINING, on behalf of the United States any property (1) October 1, 2002; or TESTING, AND OPERATIONS. or interest to be transferred to the United (2) the date of the enactment of this Act. (a) IN GENERAL.—Chapter 159 of title 10, States under paragraph (1)(B). TITLE XXVIII—GENERAL PROVISIONS United States Code, is amended by inserting ‘‘(6) The Secretary concerned may, for purposes of the acceptance of property or inter- Subtitle A—Military Construction Program after section 2696 the following new section: ests under this subsection, accept an ap- and Military Family Housing Changes ‘‘§ 2697. Agreements with private entities to praisal or title documents prepared or adopt- SEC. 2801. LEASE OF MILITARY FAMILY HOUSING enhance military training, testing, and operations ed by a non-Federal entity as satisfying the IN KOREA. applicable requirements of section 301 of the (a) INCREASE IN NUMBER OF UNITS AUTHOR- ‘‘(a) AGREEMENTS WITH PRIVATE ENTITIES Uniform Relocation Assistance and Real IZED FOR LEASE AT CURRENT MAXIMUM AUTHORIZED.—The Secretary of Defense or Property Acquisition Policies Act of 1970 (42 AMOUNT.—Paragraph (3) of section 2828(e) of the Secretary of a military department may U.S.C. 4651) or section 355 of the Revised title 10, United States Code, is amended by enter into an agreement with a private enti- Statutes (40 U.S.C. 255) if the Secretary finds striking ‘‘800 units’’ and inserting ‘‘1,175 ty described in subsection (b) to address the that such appraisal or title documents sub- units’’. use or development of real property in the stantially comply with such requirements. vicinity of an installation under the jurisdic- (b) AUTHORITY TO LEASE ADDITIONAL NUM- ‘‘(e) ADDITIONAL TERMS AND CONDITIONS.— BER OF UNITS AT INCREASED MAXIMUM tion of such Secretary for purposes of— The Secretary concerned may require such AMOUNT.—That section is further amended— ‘‘(1) limiting any development or use of additional terms and conditions in an agree- (1) by redesignating paragraphs (4) and (5) such property that would otherwise be in- ment under this section as such Secretary as paragraphs (5) and (6), respectively; compatible with the mission of such installa- considers appropriate to protect the inter- (2) by inserting after paragraph (3) the fol- tion; or ests of the United States. lowing new paragraph (4): ‘‘(2) preserving habitat on such property in ‘‘(f) FUNDING.—(1) Except as provided in ‘‘(4) In addition to the units of family a manner that is compatible with both— paragraph (2), amounts authorized to be ap- housing referred to in paragraph (1) for ‘‘(A) current or anticipated environmental propriated to the Range Enhancement Initia- which the maximum lease amount is $25,000 requirements that would or might otherwise tive Fund of the Department of Defense are per unit per year, the Secretary of the Army restrict, impede, or otherwise interfere, available for purposes of any agreement may lease not more than 2,400 units of fam- whether directly or indirectly, with current under this section. ily housing in Korea subject to a maximum or anticipated military training, testing, or ‘‘(2) In the case of an installation operated lease amount of $35,000 per unit per year.’’; operations on such installation; and primarily with funds authorized to be appro- (3) in paragraph (5), as so redesignated, by ‘‘(B) current or anticipated military train- priated for research, development, test, and striking ‘‘and (3)’’ and inserting ‘‘(3), and ing, testing, or operations on such installa- evaluation, funds authorized to be appro- (4)’’; and tion. priated for the Department of Defense, or the (4) in paragraph (6), as so redesignated, by ‘‘(b) COVERED PRIVATE ENTITIES.—A private military department concerned, for research, striking ‘‘53,000’’ and inserting ‘‘55,775’’. entity described in this subsection is any pri- development, test, and evaluation are avail- SEC. 2802. REPEAL OF SOURCE REQUIREMENTS vate entity that has as its stated principal able for purposes of an agreement under this FOR FAMILY HOUSING CONSTRUC- organizational purpose or goal the conserva- section with respect to such installation. TION OVERSEAS. tion, restoration, or preservation of land and ‘‘(3) Amounts in the Fund that are made Section 803 of the Military Construction natural resources, or a similar purpose or available for an agreement of a military de- Authorization Act, 1984 (Public Law 98–115; goal. partment under this section shall be made 10 U.S.C. 2821 note) is repealed. ‘‘(c) INAPPLICABILITY OF CERTAIN CONTRACT available by transfer from the Fund to the SEC. 2803. MODIFICATION OF LEASE AUTHORI- REQUIREMENTS.—Chapter 63 of title 31 shall applicable operation and maintenance ac- TIES UNDER ALTERNATIVE AUTHOR- not apply to any agreement entered into count of the military department, including ITY FOR ACQUISITION AND IM- under this section. the operation and maintenance account for PROVEMENT OF MILITARY HOUSING. ‘‘(d) ACQUISITION AND ACCEPTANCE OF PROP- the active component, or for a reserve com- (a) LEASING OF HOUSING.—Subsection (a) of ERTY AND INTERESTS.—(1) Subject to the pro- ponent, of the military department.’’. section 2874 of title 10, United States Code, is visions of this subsection, an agreement with (b) CLERICAL AMENDMENT.—The table of amended to read as follows: a private entity under this section— sections at the beginning of such chapter is ‘‘(a) LEASE AUTHORIZED.—(1) The Secretary ‘‘(A) may provide for the private entity to amended by inserting after the item relating concerned may enter into contracts for the acquire all right, title, and interest in and to to section 2696 the following new item: lease of housing units that the Secretary de- any real property, or any lesser interest ‘‘2697. Agreements with private entities to termines are suitable for use as military therein, as may be appropriate for purposes enhance military training, test- family housing or military unaccompanied of this section; and ing, and operations.’’. housing. ‘‘(B) shall provide for the private entity to ‘‘(2) The Secretary concerned shall utilize transfer to the United States, upon the re- SEC. 2812. CONVEYANCE OF SURPLUS REAL housing units leased under paragraph (1) as quest of the United States, any property or PROPERTY FOR NATURAL RE- SOURCE CONSERVATION. military family housing or military unac- interest so acquired. (a) IN GENERAL.—(1) Chapter 159 of title 10, companied housing, as appropriate.’’. ‘‘(2) Property or interests may not be ac- United States Code, as amended by section (b) REPEAL OF INTERIM LEASE AUTHORITY.— quired pursuant to an agreement under this 2811 of this Act, is further amended by in- Section 2879 of such title is repealed. section unless the owner of such property or serting after section 2697 the following new (c) CONFORMING AND CLERICAL AMEND- interests, as the case may be, consents to the section: MENTS.—(1) The heading for section 2874 of acquisition. such title is amended to read as follows: ‘‘(3) An agreement under this section pro- ‘‘§ 2698. Conveyance of surplus real property for natural resource conservation ‘‘§ 2874. Leasing of housing’’. viding for the acquisition of property or interests under paragraph (1)(A) shall provide ‘‘(a) AUTHORITY TO CONVEY.—Subject to (2) The table of sections at the beginning of for the sharing by the United States and the subsection (c), the Secretary of a military subchapter IV of chapter 169 of such title is private entity concerned of the costs of the department may, in the sole discretion of amended— acquisition of such property or interests. such Secretary, convey to any State or local (A) by striking the item relating to section ‘‘(4) The Secretary concerned shall identify government or instrumentality thereof, or 2874 and inserting the following new item: any property or interests to be acquired pur- private entity that has as its primary pur- ‘‘2874. Leasing of housing.’’; suant to an agreement under this section. pose or goal the conservation of open space and Such property or interests shall be limited or natural resources on real property, all (B) by striking the item relating to section to the minimum property or interests nec- right, title, and interest of the United States 2879. essary to ensure that the property concerned in and to any real property, including any

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.029 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6419 improvements thereon, under the jurisdic- ‘‘(B) Title II of the Defense Authorization inserting ‘‘the military departments or de- tion of such Secretary that is described in Amendments and Base Closure and Realign- fense-wide’’. subsection (b). ment Act of 1988 (10 U.S.C. 2687 note). (2) The amendment made by paragraph (1) ‘‘(b) COVERED REAL PROPERTY.—Real prop- ‘‘(C) The Defense Base Closure and Re- shall not affect the availability for the pur- erty described in this subsection is any prop- alignment Act of 1990 (part A of title XXIX pose of the demonstration program under erty that— of Public Law 101–510; 10 U.S.C. 2687 note). section 2814 of the Military Construction Au- ‘‘(1) is suitable, as determined by the Sec- ‘‘(D) Any other similar authority for the thorization Act for Fiscal Year 2002, as retary concerned, for use for the conserva- closure or realignment of military installa- amended by this section, of any amounts au- tion of open space or natural resources; tions that is enacted after the date of the en- thorized to be appropriated before the date of ‘‘(2) is surplus property for purposes of actment of the National Defense Authoriza- the enactment of this Act for the Army for title II of the Federal Property and Adminis- tion Act for Fiscal Year 2003.’’. military construction that have been obli- trative Services Act of 1949 (40 U.S.C. 471 et (2) The table of sections at the beginning of gated for the demonstration program, but seq.); and chapter 159 of that title, as amended by sec- not expended, as of that date. ‘‘(3) has been available for public benefit tion 2811 of this Act, is further amended by Subtitle C—Land Conveyances conveyance under that title for a sufficient inserting after the item relating to section 2687 the following new item: SEC. 2821. CONVEYANCE OF CERTAIN LANDS IN time, as determined by the Secretary con- ALASKA NO LONGER REQUIRED FOR cerned in consultation with the Adminis- ‘‘2698. Conveyance of surplus real property NATIONAL GUARD PURPOSES. trator of General Services, to permit poten- for natural resource conserva- (a) CONVEYANCE AUTHORIZED.—The Sec- tial claimants to seek public benefit convey- tion.’’. retary of the Army may convey to the State ance of such property, but without the sub- (b) ACCEPTANCE OF FUNDS TO COVER ADMIN- of Alaska, or any governmental entity, Na- mittal during that time of a request for such ISTRATIVE EXPENSES.—Section 2695(b) of that tive Corporation, or Indian tribe within the conveyance. title is amended by adding at the end the fol- State of Alaska, all right, title, and interest ‘‘(c) CONDITIONS OF CONVEYANCE.—Real lowing new paragraph: of the United States in and to any parcel of property may not be conveyed under this ‘‘(5) The conveyance of real property under real property, including any improvements section unless the conveyee of such property section 2698 of this title.’’. thereon, described in subsection (b) that the agrees that such property— (c) AGREEMENTS WITH PRIVATE ENTITIES.— Secretary considers appropriate in the public ‘‘(1) shall be used and maintained for the Section 2701(d) of that title is amended— interest. conservation of open space or natural re- (1) in paragraph (1), by striking ‘‘with any (b) COVERED PROPERTY.—Real property de- sources in perpetuity, unless otherwise pro- State or local government agency, or with scribed in this subsection is any property lo- vided for under subsection (e); and any Indian tribe,’’ and inserting ‘‘any State cated in the State of Alaska that, as deter- ‘‘(2) may be subsequently conveyed only or local government agency, any Indian mined by the Secretary— if— tribe, or, for purposes under section 2697 or (1) is currently under the jurisdiction of ‘‘(A) the Secretary concerned approves in 2698 of this title, with any private entity’’; the Department of the Army; writing such subsequent conveyance; and (2) before December 2, 1980, was under the ‘‘(B) the Secretary concerned notifies the (2) by striking paragraph (4), as redesig- jurisdiction of the Department of the Army appropriate committees of Congress of the nated by section 311(1) of this Act, and infor use of the Alaska National Guard; subsequent conveyance not later than 21 serting the following new paragraph (4): (3) is located in a unit of the National days before the subsequent conveyance; and ‘‘(4) DEFINITIONS.—In this subsection: Wildlife Refuge System designated in the ‘‘(C) after such subsequent conveyance, ‘‘(A) The term ‘Indian tribe’ has the mean- Alaska National Interest Lands Conserva- shall be used and maintained for the con- ing given such term in section 101(36) of tion Act (94 Stat. 2371; 16 U.S.C. 1301 note); servation of open space or natural resources Comprehensive Environmental Response, (4) is excess to the needs of the Alaska Na- in perpetuity, unless otherwise provided for Compensation, and Liability Act of 1980 (42 tional Guard and the Department of Defense; under subsection (e). U.S.C. 9601(36)). and ‘‘(d) USE FOR INCIDENTAL PRODUCTION OF ‘‘(B) The term ‘private entity’ means any (5) is in such condition that— REVENUE.—Real property conveyed under private entity that has as its stated prin- (A) the anticipated cost to the United this section may be used for the incidental cipal organizational purpose or goal the con- States of retaining such property exceeds the production of revenue, as determined by the servation, restoration, or preservation of value of such property; or Secretary concerned, if such production of land and natural resources, or a similar pur- (B) such property is unsuitable for reten- revenue is compatible with the use of such pose or goal.’’. tion by the United States. property for the conservation of open space SEC. 2813. MODIFICATION OF DEMONSTRATION (c) CONSIDERATION.—(1) The conveyance of or natural resources, as so determined. PROGRAM ON REDUCTION IN LONG- real property under this section shall, at the ‘‘(e) REVERSION.—If the Secretary con- TERM FACILITY MAINTENANCE election of the Secretary, be for no consider- COSTS. cerned determines at any time that real ation or for consideration in an amount de- (a) ADMINISTRATOR OF PROGRAM.—Sub- property conveyed under this section is not termined by the Secretary to be appropriate section (a) of section 2814 of the Military being used and maintained in accordance under the circumstances. Construction Authorization Act for Fiscal with the agreement of the conveyee under (2) If consideration is received under para- Year 2002 (division B of Public Law 107–107; subsection (c), all right, title, and interest in graph (1) for property conveyed under sub- 115 Stat. 1310; 10 U.S.C. 2809 note) is amended and to such real property, including any im- section (a), the Secretary may use the by striking ‘‘Secretary of the Army’’ and in- provements thereon, shall revert to the amounts received, to the extent provided in serting ‘‘Secretary of Defense or the Sec- United States, and the United States shall appropriations Acts, to pay for— retary of a military department’’. have the right of immediate entry thereon. (A) the cost of a survey described in sub- (b) CONTRACTS.—Subsection (b) of that sec- ‘‘(f) PROPERTY UNDER BASE CLOSURE tion is amended to read as follows: section (d) with respect to such property; LAWS.—The Secretary concerned may not ‘‘(b) CONTRACTS.—(1) Not more than 12 con- (B) the cost of carrying out any environ- make a conveyance under this section of any tracts may contain requirements referred to mental assessment, study, or analysis, and real property to be disposed of under a base in subsection (a) for the purpose of the dem- any remediation, that may be required under closure law in a manner that is inconsistent onstration program. Federal law, or is considered appropriate by with the requirements and conditions of such ‘‘(2) Except as provided in paragraph (3), the Secretary, in connection with such prop- base closure law. the demonstration program may only cover erty or the conveyance of such property; and ‘‘(g) ADDITIONAL TERMS AND CONDITIONS.— contracts entered into on or after the date of (C) any other costs incurred by the Sec- The Secretary concerned may establish such the enactment of the National Defense Au- retary in conveying such property. additional terms and conditions in connec- thorization Act for Fiscal Year 2003. (d) DESCRIPTION OF PROPERTY.—The exact tion with a conveyance of real property ‘‘(3) The Secretary of the Army shall treat acreage and legal description of any real under this section as such Secretary con- any contract containing requirements re- property to be conveyed under subsection (a) siders appropriate to protect the interests of ferred to in subsection (a) that was entered shall be determined by a survey satisfactory the United States. into under the authority in that subsection to the Secretary. ‘‘(h) DEFINITIONS.—In this section: during the period beginning on December 28, (e) ADDITIONAL TERMS AND CONDITIONS.— ‘‘(1) The term ‘appropriate committees of 2001, and ending on the date of the enact- The Secretary may require such additional Congress’ has the meaning given that term ment of the National Defense Authorization terms and conditions in connection with a in section 2801(c)(4) of this title. Act for Fiscal Year 2003 as a contract for the conveyance of real property under this sec- ‘‘(2) The term ‘State’ includes the District purpose of the demonstration program under tion as the Secretary considers appropriate of Columbia, the Commonwealth of Puerto that subsection.’’. to protect the interests of the United States. Rico, the Commonwealth of the Northern (c) REPORTING REQUIREMENTS.—Subsection (f) DEFINITIONS.—In this section: Marianas, and the territories and possessions (d) of that section is amended by striking (1) The term ‘‘Indian tribe’’ has the mean- of the United States. ‘‘Secretary of the Army’’ and inserting ‘‘Sec- ing given such term in section 102 of the Fed- ‘‘(3) The term ‘base closure law’ means the retary of Defense’’. erally Recognized Indian Tribe List Act of following: (d) FUNDING.—(1) Subsection (f) of that sec- 1994 (Public Law 103–454; 108 Stat. 4791; 25 ‘‘(A) Section 2687 of this title. tion is amended by striking ‘‘the Army’’ and U.S.C. 479a).

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.029 pfrm12 PsN: S08PT1 S6420 CONGRESSIONAL RECORD — SENATE July 8, 2002 (2) The term ‘‘Native Corporation’’ has the (2) in subsections (c), (d), (e), (f), (g), and (2) Any reimbursement for costs that is re- meaning given such term in section 3 of the (h), by striking ‘‘subsection (b)’’ each place ceived under paragraph (1) shall be credited Alaska Native Claims Settlement Act (43 it appears and inserting ‘‘subsection (b)(1)’’. to the fund or account providing funds for U.S.C. 1602). (b) EXEMPTION OF MODIFIED CONVEYANCES such costs. Amounts so credited shall be SEC. 2822. LAND CONVEYANCE, FORT CAMPBELL, FROM FEDERAL SCREENING REQUIREMENT.— merged with amounts in such fund or ac- KENTUCKY. That section is further amended— count, and shall be available for the same (a) CONVEYANCE AUTHORIZED.—The Sec- (1) by redesignating subsections (g) and (h) purposes, and subject to the same conditions retary of the Army may convey, without as subsections (h) and (i), respectively; and and limitations, as amounts in such fund or consideration, to the City of Hopkinsville, (2) by inserting after subsection (f) the fol- account. Kentucky (in this section referred to as the lowing new subsection (g): (d) DESCRIPTION OF PROPERTY.—The exact ‘‘City’’), all right, title, and interest of the ‘‘(g) EXEMPTION OF CERTAIN CONVEYANCES acreage and legal description of the real United States in and to a parcel of real prop- FROM FEDERAL SCREENING.—Any conveyance property to be conveyed under subsection (a) erty at Fort Campbell, Kentucky, consisting authorized by subsection (b)(1) of this sec- shall be determined by a survey satisfactory of approximately 50 acres and containing an tion, as amended by section 2823 of the Na- to the Secretary. abandoned railroad spur for the purpose of tional Defense Authorization Act for Fiscal (e) ADDITIONAL TERMS AND CONDITIONS.— permitting the City to use the property for Year 2003, is exempt from the requirement to The Secretary may require such additional storm water management, recreation, trans- screen the property concerned for further terms and conditions in connection with the portation, and other public purposes. Federal use pursuant to section 2696 of title conveyance under subsection (a) as the Sec- (b) REIMBURSEMENT OF TRANSACTION 10, United States Code.’’. retary considers appropriate to protect the COSTS.—(1) The City shall reimburse the Sec- SEC. 2824. LAND CONVEYANCE, WESTOVER AIR interests of the United States. retary for any costs incurred by the Sec- RESERVE BASE, MASSACHUSETTS. SEC. 2826. LAND EXCHANGE, BUCKLEY AIR retary in carrying out the conveyance au- (a) CONVEYANCE AUTHORIZED.—The Sec- FORCE BASE, COLORADO. thorized by subsection (a). retary of the Navy may convey, without con- (a) EXCHANGE AUTHORIZED.—Subject to (2) Any reimbursement for costs that is re- sideration, to the City of Chicopee, Massa- subsection (b), the Secretary of the Air ceived under paragraph (1) shall be credited chusetts (in this section referred to as the Force may convey to the State of Colorado to the fund or account providing funds for ‘‘City’’), all right, title, and interest of the (in this section referred to as the ‘‘State’’) such costs. Amounts so credited shall be United States in and to a parcel of real prop- all right, title, and interest of the United merged with amounts in such fund or ac- erty, including 133 housing units and other States in and to a parcel of real property, in- count, and shall be available for the same improvements thereon, consisting of ap- cluding improvements thereon, consisting of purposes, and subject to the same conditions proximately 30.38 acres located at Westover all or part of the Watkins Communications and limitations, as amounts in such fund or Air Reserve Base in Chicopee, Massachu- Site in Arapahoe County, Colorado. account. setts, for the purpose of permitting the City (b) LIMITATION.—The Secretary of the Air (c) DESCRIPTION OF PROPERTY.—The acre- to use the property for economic develop- Force may carry out the conveyance author- age of the real property to be conveyed under ment and other public purposes. ized by subsection (a) only with the concur- subsection (a) has been determined by the (b) ADMINISTRATIVE EXPENSES.—(1) The rence of the Secretary of Defense. Secretary through a legal description out- Secretary may require the City to reimburse (c) CONSIDERATION.—(1) As consideration lining such acreage. No further survey of the the Secretary for the costs incurred by the for the conveyance authorized by subsection property is required before conveyance under Secretary to carry out the conveyance under (a) the State shall convey to the United that subsection. subsection (a), including survey costs, costs States of all right, title, and interest of the (d) ADDITIONAL TERMS AND CONDITIONS.— related to environmental documentation State in and to a parcel of real property, in- The Secretary may require such additional (other than the environmental baseline sur- cluding improvements thereon, consisting of terms and conditions in connection with the vey), and other administrative costs related approximately 41 acres that is owned by the conveyance under subsection (a) as the Sec- to the conveyance. State and is contiguous to Buckley Air retary considers appropriate to protect the (2) Section 2695(c) of title 10, United States Force Base, Colorado. interests of the United States. Code, shall apply to any amount received (2) The Secretary shall have jurisdiction SEC. 2823. MODIFICATION OF AUTHORITY FOR under this subsection. over the real property conveyed under para- LAND TRANSFER AND CONVEYANCE, (c) DESCRIPTION OF PROPERTY.—The exact graph (1). NAVAL SECURITY GROUP ACTIVITY, acreage and legal description of the real (3) Upon conveyance to the United States WINTER HARBOR, MAINE. property to be conveyed under subsection (a) under paragraph (1), the real property con- (a) MODIFICATION OF CONVEYANCE AUTHOR- shall be determined by a survey satisfactory veyed under that paragraph is withdrawn ITY FOR COREA AND WINTER HARBOR PROP- to the Secretary. from all forms of appropriation under the ERTIES.—Section 2845 of the Military Con- (d) ADDITIONAL TERMS AND CONDITIONS.— general land laws, including the mining laws struction Authorization Act for Fiscal Year The Secretary may require such additional and mineral and geothermal leasing laws. 2002 (division B of Public Law 107–107; 115 terms and conditions in connection with the (d) DESCRIPTION OF PROPERTY.—The exact Stat. 1319) is amended— conveyance under subsection (a) as the Sec- acreage and legal description of the parcels (1) by striking subsection (b) and inserting retary considers appropriate to protect the of real property to be conveyed under this the following new subsection (b): interests of the United States. section shall be determined by surveys satis- ‘‘(b) CONVEYANCE AND TRANSFER OF COREA SEC. 2825. LAND CONVEYANCE, NAVAL STATION factory to the Secretary. AND WINTER HARBOR PROPERTIES AUTHOR- NEWPORT, RHODE ISLAND. (e) ADDITIONAL TERMS AND CONDITIONS.— IZED.—(1) The Secretary of the Navy may (a) CONVEYANCE AUTHORIZED.—The Sec- The Secretary may require such additional convey, without consideration, to the State retary of the Navy may convey to the State terms and conditions in connection with the of Maine, any political subdivision of the of Rhode Island, or any political subdivision conveyances under authorized by this sec- State of Maine, or any tax-supported agency thereof, any or all right, title, and interest tion as the Secretary considers appropriate in the State of Maine, all right, title, and in- of the United States in and to a parcel of to protect the interests of the United States. terest of the United States in and to parcels real property, together with improvements SEC. 2827. LAND ACQUISITION, BOUNDARY CHAN- of real property, including any improve- thereon, consisting of approximately 34 acres NEL DRIVE SITE, ARLINGTON, VIR- ments thereon and appurtenances thereto, located in Melville, Rhode Island, and known GINIA. comprising the former facilities of the Naval as the Melville Marina site. (a) ACQUISITION AUTHORIZED.—The Sec- Security Group Activity, Winter Harbor, (b) CONSIDERATION.—(1) As consideration retary of Defense may, using amounts au- Maine, as follows: for the conveyance of real property under thorized to be appropriated to be appro- ‘‘(A) The parcel consisting of approxi- subsection (a), the conveyee shall pay the priated by section 2401, acquire all right, mately 50 acres known as the Corea Oper- United States an amount equal to the fair title, and interest in and to a parcel of real ations Site. market value of the real property, as deter- property, including any improvements there- ‘‘(B) Three parcels consisting of approxi- mined by the Secretary based on an ap- on, in Arlington County, Virginia, consisting mately 23 acres and comprising family hous- praisal of the real property acceptable to the of approximately 7.2 acres and known as the ing facilities. Secretary. Boundary Channel Drive Site. The parcel is ‘‘(2) The Secretary of the Navy may trans- (2) Any consideration received under para- located southeast of Interstate Route 395 at fer to the administrative jurisdiction of the graph (1) shall be deposited in the account the end of Boundary Channel Drive and was Secretary of the Interior a parcel of real established under section 204(h) of the Fed- most recently occupied by the Twin Bridges property consisting of approximately 404 eral Property and Administrative Services Marriott. acres at the former Naval Security Group Act of 1949 (40 U.S.C. 485(h)), and shall be (b) INCLUSION IN PENTAGON RESERVATION.— Activity, which is the balance of the real available as provided for in that section. Upon its acquisition under subsection (a), property comprising the Corea Operations (c) REIMBURSEMENT OF TRANSACTION the parcel acquired under that subsection Site. COSTS.—(1) The Secretary may require the shall be included in the Pentagon Reserva- ‘‘(3) The Secretary of the Interior shall ad- conveyee of the real property under sub- tion, as that term is defined in section minister the property transferred under section (a) to reimburse the Secretary for 2674(f)(1) of title 10, United States Code. paragraph (2) as part of the National Wildlife any costs incurred by the Secretary in car- (c) DESCRIPTION OF PROPERTY.—The exact Refuge System.’’; and rying out the conveyance. acreage and legal description of the real

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00094 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.029 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6421 property to be acquired under subsection (a) SEC. 2829. LAND CONVEYANCE, FORT HOOD, toration (including environmental restora- shall be determined by a survey satisfactory TEXAS. tion), or construction of facilities for the De- to the Secretary. (a) CONVEYANCE AUTHORIZED.—The Sec- partment of the Army at Fort Belvoir or at (d) TERMS AND CONDITIONS.—The Secretary retary of the Army may convey, without any other site or sites designated by the Sec- may require such terms and conditions in consideration, to the Veterans Land Board of retary. connection with the acquisition under this the State of Texas (in this section referred to (3) If in-kind consideration under para- section as the Secretary considers appro- as the ‘‘Board’’), all right, title, and interest graph (1) includes the construction of facili- priate to protect the interests of the United of the United States in and to a parcel of ties, the grantee shall also convey to the States. real property, including any improvements United States— SEC. 2828. LAND CONVEYANCES, WENDOVER AIR thereon, consisting of approximately 174 (A) title to such facilities, free of all liens FORCE BASE AUXILIARY FIELD, NE- acres at Fort Hood, Texas, for the purpose of and other encumbrances; and VADA. permitting the Board to establish a State- (B) if the United States does not have fee (a) CONVEYANCES AUTHORIZED TO WEST run cemetery for veterans. simple title to the land underlying such fa- WENDOVER, NEVADA.—(1) The Secretary of (b) REVERSIONARY INTEREST.—(1) If at the cilities, convey to the United States all the Interior may convey, without consider- end of the five-year period beginning on the ation, to the City of West Wendover, Nevada, right, title, and interest in and to such lands date of the conveyance authorized by sub- not held by the United States. all right, title, and interest of the United section (a), the Secretary determines that States in and to the following: (4) The Secretary shall deposit any cash re- the property conveyed under that subsection ceived as consideration under this subsection (A) The lands at Wendover Air Force Base is not being used for the purpose specified in Auxiliary Field, Nevada, identified in Ease- in the special account established pursuant that subsection, all right, title, and interest to section 204(h) of the Federal Property and ment No. AFMC–HL–2–00–334 that are deter- in and to the property, including any im- mined by the Secretary of the Air Force to Administrative Services Act of 1949 (40 provements thereon, shall revert to the U.S.C. 485(h)). be no longer required. United States, and the United States shall (B) The lands at Wendover Air Force Base (d) REPEAL OF SUPERSEDED AUTHORITY.— have the right of immediate entry thereon. Section 2821 of the Military Construction Auxiliary Field identified for disposition on (2) Any determination of the Secretary the map entitled ‘‘West Wendover, Nevada– Authorization Act for Fiscal Years 1990 and under this subsection shall be made on the 1991 (division B of Public Law 101–189; 103 Excess’’, dated January 5, 2001, that are de- record after an opportunity for a hearing. termined by the Secretary of the Air Force Stat. 1658), as amended by section 2854 of the (c) DESCRIPTION OF PROPERTY.—The exact Military Construction Authorization Act for to be no longer required. acreage and legal description of the real (2) The purposes of the conveyances under Fiscal Year 1996 (division B of Public Law property to be conveyed under subsection (a) 104–106; 110 Stat. 568), is repealed. this subsection are— shall be determined by a survey satisfactory (e) DESCRIPTION OF PROPERTY.—The exact (A) to permit the establishment and main- to the Secretary. The cost of the survey tenance of runway protection zones; and acreage and legal description of the real shall be borne by the Board. property to be conveyed under subsections (B) to provide for the development of an in- (d) ADDITIONAL TERMS AND CONDITIONS.— (a) and (b) shall be determined by surveys dustrial park and related infrastructure. The Secretary may require such additional satisfactory to the Secretary. The cost of (3) The map referred to in paragraph (1)(B) terms and conditions in connection with the shall be on file and available for public in- each such survey shall be borne by the grant- conveyance under subsection (a) as the Sec- spection in the offices of the Director of the ee. retary considers appropriate to protect the Bureau of Land Management and the Elko (f) ADDITIONAL TERMS AND CONDITIONS.— interests of the United States. District Office of the Bureau of Land Man- The Secretary may require such additional agement. SEC. 2830. LAND CONVEYANCES, ENGINEER terms and conditions in connection with the PROVING GROUND, FORT BELVOIR, (b) CONVEYANCE AUTHORIZED TO TOOELE VIRGINIA. conveyances under subsections (a) and (b) as COUNTY, UTAH.—(1) The Secretary of the In- the Secretary considers appropriate to pro- (a) CONVEYANCE TO FAIRFAX COUNTY, VIR- terior may convey, without consideration, to tect the interests of the United States. Tooele County, Utah, all right, title, and in- GINIA, AUTHORIZED.—(1) The Secretary of the Army may convey, without consideration, to SEC. 2831. MASTER PLAN FOR USE OF NAVY terest of the United States in and to the ANNEX, ARLINGTON, VIRGINIA. lands at Wendover Air Force Base Auxiliary Fairfax County, Virginia, all right, title, and (a) REPEAL OF COMMISSION ON NATIONAL Field identified in Easement No. AFMC–HL– interest of the United States in and to a par- MILITARY MUSEUM.—Title XXIX of the Mili- 2–00–318 that are determined by the Sec- cel of real property, including any improvements thereon, consisting of approximately tary Construction Authorization Act for Fis- retary of the Air Force to be no longer recal Year 2000 (division B of Public Law 106– quired. 135 acres, located in the northwest portion of 65; 113 Stat. 880; 10 U.S.C. 111 note) is re- (2) The purpose of the conveyance under the Engineer Proving Ground (EPG) at Fort pealed. this subsection is to permit the establish- Belvoir, Virginia, in order to permit the ment and maintenance of runway protection County to use such property for park and (b) MODIFICATION OF AUTHORITY FOR TRANS- zones and an aircraft accident potential pro- recreational purposes. FER FROM NAVY ANNEX.—Section 2881 of the tection zone as necessitated by continued (2) The parcel of real property authorized Military Construction Authorization Act for military aircraft operations at the Utah Test to be conveyed by paragraph (1) is generally Fiscal Year 2000 (113 Stat. 879) is amended— and Training Range. described as that portion of the Engineer (1) in subsection (b)(2), as amended by sec- (c) MANAGEMENT OF CONVEYED LANDS.—The Proving Ground located west of Accotink tion 2863(f) of the Military Construction Au- lands conveyed under subsections (a) and (b) Creek, east of the Fairfax County Parkway, thorization Act for Fiscal Year 2002 (division shall be managed by the City of West and north of Cissna Road to the northern B of Public Law 107–107; 115 Stat. 1332), by Wendover, Nevada, City of Wendover, Utah, boundary, but excludes a parcel of land con- striking ‘‘as a Tooele County, Utah, and Elko County, sisting of approximately 15 acres located in site—’’ and all that follows and inserting ‘‘as Nevada— the southeast corner of such portion of the a site for such other memorials or museums (1) in accordance with the provisions of an Engineer Proving Ground. that the Secretary considers compatible Interlocal Memorandum of Agreement en- (3) The land excluded under paragraph (2) with Arlington National Cemetery and the tered into between the Cities of West from the parcel of real property authorized Air Force Memorial.’’; and Wendover, Nevada, and Wendover, Utah, to be conveyed by paragraph (1) shall be re- (2) in subsection (d)— Tooele County, Utah, and Elko County, Ne- served for an access road to be constructed (A) in paragraph (2), by striking ‘‘the rec- vada, providing for the coordinated manage- in the future. ommendation (if any) of the Commission on ment and development of the lands for the (b) CONVEYANCE OF BALANCE OF PROPERTY the National Military Museum to use a por- economic benefit of both communities; and AUTHORIZED.—The Secretary may convey to tion of the Navy Annex property as the site (2) in a manner that is consistent with any competitively selected grantee all right, for the National Military Museum’’, and in- such provisions of the easements referred to title, and interest of the United States in serting ‘‘the use of the acres reserved under subsections (a) and (b) that, as jointly deter- and to the real property, including any im- (b)(2) as a memorial or museum’’; and mined by the Secretary of the Air Force and provements thereon, at the Engineering (B) in paragraph (4), by striking ‘‘the date Secretary of the Interior, remain applicable Proving Ground, not conveyed under the au- on which the Commission on the National and relevant to the operation and manage- thority in subsection (a). Military Museum submits to Congress its re- ment of the lands following conveyance and (c) CONSIDERATION.—(1) As consideration port under section 2903’’ and inserting ‘‘the are consistent with the provisions of this for the conveyance authorized by subsection date of the enactment of the National De- section. (b), the grantee shall provide the United fense Authorization Act for Fiscal Year (d) ADDITIONAL TERMS AND CONDITIONS.— States, whether by cash payment, in-kind 2003’’. The Secretary of the Air Force and the Sec- contribution, or a combination thereof, an (c) CONSTRUCTION OF AMENDMENTS.—The retary of the Interior may jointly require amount that is not less than the fair market amendments made by subsections (a) and (b) such additional terms and conditions in con- value, as determined by the Secretary, of the may not be construed to delay the establish- nection with the conveyances required by property conveyed under that subsection. ment of the United States Air Force Memo- subsections (a) and (b) as the Secretaries (2) In-kind consideration under paragraph rial authorized by section 2863 of the Mili- consider appropriate to protect the interests (1) may include the maintenance, improve- tary Construction Authorization Act for Fis- of the United States. ment, alteration, repair, remodeling, res- cal Year 2002 (115 Stat. 1330).

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00095 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.029 pfrm12 PsN: S08PT1 S6422 CONGRESSIONAL RECORD — SENATE July 8, 2002 SEC. 2832. LAND CONVEYANCE, SUNFLOWER amounts authorized to be appropriated by Project 03–D–122, purification prototype fa- ARMY AMMUNITION PLANT, KANSAS. section 2304(a), transfer to the United States cility, Y–12 Plant, Oak Ridge, Tennessee, (a) CONVEYANCE AUTHORIZED.—The Sec- Fish and Wildlife Service $15,000,000 to fulfill $20,800,000. retary of the Army or the Administrator of the obligations of the Air Force under sec- Project 03–D–123, special nuclear material General Services may convey, without con- tion 3011(b)(5)(F) of the Military Lands With- component requalification facility, Pantex sideration, to the Johnson County Park and drawal Act of 1999 (title XXX of Public Law Plant, Amarillo, Texas, $3,000,000 Recreation District, Kansas (in this section 106–65; 113 Stat. 889). Project 02–D–103, project engineering and referred to as the ‘‘District’’), all right, title, (2) Upon receipt by the Service of the funds design (PED), various locations, $24,945,000. and interest of the United States in and to a transferred under paragraph (1), the obliga- Project 02–D–105, engineering technology parcel of real property, including any im- tions of the Air Force referred to in that complex upgrade, Lawrence Livermore Na- provements thereon, in the State of Kansas paragraph shall be considered fulfilled. tional Laboratory, Livermore, California, consisting of approximately 2,000 acres, a (b) CONTRIBUTION TO FOUNDATION.—(1) The $10,000,000. portion of the Sunflower Army Ammunition United States Fish and Wildlife Service may Project 02–D–107, electrical power systems Plant. The purpose of the conveyance is to grant funds received by the Service under safety communications and bus upgrades, permit the District to use the parcel for pub- subsection (a) in a lump sum to the National Nevada Test Site, Nevada, $7,500,000. lic recreational purposes. Fish and Wildlife Foundation for use in ac- Project 01–D–103, project engineering and (b) DESCRIPTION OF PROPERTY.—The exact complishing the purposes of section design (PED), various locations, $6,164,000. acreage, location, and legal description of 3011(b)(5)(F) of the Military Lands With- Project 01–D–107, Atlas relocation, Nevada the real property to be conveyed under sub- drawal Act of 1999. Test Site, Nevada, $4,123,000. section (a) shall be determined by a survey (2) Funds received by the Foundation Project 01–D–108, microsystems and engi- satisfactory to the official making the con- under paragraph (1) shall be subject to the neering sciences applications (MESA), veyance. The cost of such legal description, provisions of the National Fish and Wildlife Sandia National Laboratories, Albuquerque, survey, or both shall be borne by the Dis- Foundation Establishment Act (16 U.S.C. New Mexico, $75,000,000. trict. 3701 et seq.), other than section 10(a) of that (c) ADDITIONAL TERMS AND CONDITIONS.— Project 01–D–124, HEU storage facility, Y– The official making the conveyance of real Act (16 U.S.C. 3709(a)). 12 Plant, Oak Ridge, Tennessee, $25,000,000. property under subsection (a) may require DIVISION C—DEPARTMENT OF ENERGY Project 01–D–126, weapons evaluation test such additional terms and conditions in con- NATIONAL SECURITY AUTHORIZATIONS laboratory, Pantex Plant, Amarillo, Texas, nection with the conveyance as that official AND OTHER AUTHORIZATIONS $8,650,000. considers appropriate to protect the inter- TITLE XXXI—DEPARTMENT OF ENERGY Project 01–D–800, sensitive compartmented ests of the United States. NATIONAL SECURITY PROGRAMS information facility, Lawrence Livermore (d) EFFECTIVE DATE.—This section shall National Laboratory, Livermore, California, Subtitle A—National Security Programs $9,611,000. take effect on January 31, 2003. Authorizations SEC. 2833. LAND CONVEYANCE, BLUEGRASS Project 99–D–103, isotope sciences facili- ARMY DEPOT, RICHMOND, KEN- SEC. 3101. NATIONAL NUCLEAR SECURITY AD- ties, Lawrence Livermore National Labora- TUCKY. MINISTRATION. tory, Livermore, California, $4,011,000. (a) CONVEYANCE AUTHORIZED.—(1) The Sec- Funds are hereby authorized to be appro- Project 99–D–104, protection of real prop- retary of the Army may convey, without priated to the Department of Energy for fis- erty (roof reconstruction, phase II), Law- consideration, to Madison County, Kentucky cal year 2003 for the activities of the Na- rence Livermore National Laboratory, Liver- (in this section referred to as the ‘‘County’’), tional Nuclear Security Administration in more, California, $5,915,000. all right, title, and interest of the United carrying out programs necessary for na- Project 99–D–127, stockpile management States in and to a parcel of real property, in- tional security in the amount of restructuring initiative, Kansas City Plant, cluding any improvements thereon, con- $8,160,043,000, to be allocated as follows: Kansas City, Missouri, $29,900,000. sisting of approximately 10 acres at the Blue- (1) WEAPONS ACTIVITIES.—For weapons ac- Project 99–D–128, stockpile management grass Army Depot, Richmond, Kentucky, for tivities, $5,988,188,000, to be allocated as fol- restructuring initiative, Pantex Plant, Ama- the purpose of facilitating the construction lows: rillo, Texas, $407,000. of a veterans’ center on the parcel by the (A) For directed stockpile work, Project 98–D–123, stockpile management State of Kentucky. $1,218,967,000. restructuring initiative, tritium facility (2) The Secretary may not make the con- (B) For campaigns, $2,090,528,000, to be allo- modernization and consolidation, Savannah veyance authorized by this subsection unless cated as follows: River Plant, Aiken, South Carolina, the Secretary determines that the State of (i) For operation and maintenance, $10,481,000. Kentucky has appropriated adequate funds $1,740,983,000. Project 96–D–102, stockpile stewardship fa- for the construction of the veterans’ center. (ii) For construction, $349,545,000, to be al- cilities revitalization, Phase VI, various lo- (b) REVERSIONARY INTEREST.—If the Sec- located as follows: cations, $1,000,000. retary determines that the real property Project 01–D–101, distributed information (C) For secure transportation asset, conveyed under subsection (a) ceases to be systems laboratory, Sandia National Labora- $157,083,000, to be allocated as follows: utilized for the sole purpose of a veterans’ tories, Livermore, California, $13,305,000. (i) For operation and maintenance, center or that reasonable progress is not Project 00–D–103, terascale simulation fa- $102,578,000. demonstrated in constructing the center and cility, Lawrence Livermore National Labora- (ii) For program direction, $54,505,000. initiating services to veterans, all right, tory, Livermore, California, $35,030,000. (D) For safeguards and security, title, and interest in and to the property Project 00–D–107, joint computational engi- $574,954,000, to be allocated as follows: shall revert to the United States, and the neering laboratory, Sandia National Labora- (i) For operation and maintenance, United States shall have the right of imme- tories, Albuquerque, New Mexico, $7,000,000. $566,054,000. diate entry onto the property. Any deter- Project 98–D–125, tritium extraction facil- (ii) For plant projects (including mainte- mination under this subsection shall be ity, Savannah River Plant, Aiken, South nance, restoration, planning, construction, made on the record after an opportunity for Carolina, $70,165,000. acquisition, modification of facilities, and a hearing. Project 96–D–111, national ignition facility the continuation of projects authorized in (c) ADMINISTRATIVE EXPENSES.—The Sec- retary shall apply section 2695 of title 10, (NIF), Lawrence Livermore National Labora- prior years, and land acquisition related United States Code, to the conveyance au- tory, Livermore, California, $224,045,000. thereto), $8,900,000, to be allocated as follows: thorized by subsection (a). (C) For readiness in technical base and fa- Project 99–D–132, stockpile management (d) DESCRIPTION OF PROPERTY.—The exact cilities, $1,735,129,000, to be allocated as fol- restructuring initiative, nuclear material acreage and legal description of the real lows: safeguards and security upgrades project, property to be conveyed under subsection (a) (i) For operation and maintenance, Los Alamos National Laboratory, Los Ala- shall be determined by a survey satisfactory $1,464,783,000. mos, New Mexico, $8,900,000. to the Secretary. The cost of the survey (ii) For plant projects (including mainte- (E) For facilities and infrastructure, shall be borne by the County. nance, restoration, planning, construction, $242,512,000. (e) ADDITIONAL TERMS AND CONDITIONS.— acquisition, modification of facilities, and (2) DEFENSE NUCLEAR NONPROLIFERATION.— The Secretary may require such additional the continuation of projects authorized in For defense nuclear nonproliferation activi- terms and conditions in connection with the prior years, and land acquisition related ties, $1,129,130,000, to be allocated as follows: conveyance under subsection (a) as the Sec- thereto), $270,346,000, to be allocated as fol- (A) For operation and maintenance, retary considers appropriate to protect the lows: $1,037,130,000, to be allocated as follows: interests of the United States. Project 03–D–101, Sandia underground reac- (i) For nonproliferation and verification Subtitle D—Other Matters tor facility (SURF), Sandia National Labora- research and development, $298,907,000. tory, Livermore, California, $2,000,000. (ii) For nonproliferation programs, SEC. 2841. TRANSFER OF FUNDS FOR ACQUISI- TION OF REPLACEMENT PROPERTY Project 03–D–103, project engineering and $446,223,000. FOR NATIONAL WILDLIFE REFUGE design (PED), various locations, $17,839,000. (iii) For fissile materials, $292,000,000. SYSTEM LANDS IN NEVADA. Project 03–D–121, gas transfer capacity ex- (B) For plant projects (including mainte- (a) TRANSFER OF FUNDS AUTHORIZED.—(1) pansion, Kansas City Plant, Kansas City, nance, restoration, planning, construction, The Secretary of the Air Force may, using Missouri, $4,000,000. acquisition, modification of facilities, and

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the continuation of projects authorized in grams, $2,617,199,000, to be allocated as fol- (5) OFFICE OF ENVIRONMENT, SAFETY, AND prior years, and land acquisition related lows: HEALTH.—For the Office of Environment, thereto), $156,000,000, to be allocated as fol- (A) For operation and maintenance, Safety, and Health, $104,910,000, to be allo- lows: $1,704,341,000. cated as follows: Project 01–D–407, highly enriched uranium (B) For plant projects (including mainte- (A) For environment, safety, and health blend-down, Savannah River Site, Aiken, nance, restoration, planning, construction, (defense), $86,892,000. South Carolina, $30,000,000. acquisition, modification of facilities, and (B) For program direction, $18,018,000. Project 99–D–141, pit disassembly and con- the continuation of projects authorized in (6) WORKER AND COMMUNITY TRANSITION AS- version facility, Savannah River Site, Aiken, prior years, and land acquisition related SISTANCE.—For worker and community tran- South Carolina, $33,000,000. thereto), $14,870,000, to be allocated as fol- sition assistance, $25,774,000, to be allocated Project 99–D–143, mixed oxide fuel fabrica- lows: as follows: tion facility, Savannah River Site, Aiken, Project 93–D–187, high-level waste removal (A) For worker and community transition, South Carolina, $93,000,000. from filled waste tanks, Savannah River $22,965,000. (3) NAVAL REACTORS.—For naval reactors, Site, Aiken, South Carolina, $14,870,000. (B) For program direction, $2,809,000. $707,020,000, to be allocated as follows: (C) For the Office of River Protection in (7) OFFICE OF HEARINGS AND APPEALS.—For (A) For naval reactors development, carrying out environmental restoration and the Office of Hearings and Appeals, $3,136,000. $682,590,000, to be allocated as follows: waste management activities necessary for SEC. 3104. DEFENSE ENVIRONMENTAL MANAGE- (i) For operation and maintenance, national security programs, $897,988,000, to MENT PRIVATIZATION. $671,290,000. be allocated as follows: Funds are hereby authorized to be appro- (ii) For plant projects (including mainte- (i) For operation and maintenance, priated to the Department of Energy for fis- nance, restoration, planning, construction, $226,256,000. cal year 2003 for privatization initiatives in acquisition, modification of facilities, and (ii) For plant projects (including mainte- carrying out environmental restoration and the continuation of projects authorized in nance, restoration, planning, construction, waste management activities necessary for prior years, and land acquisition related acquisition, modification of facilities, and national security programs in the amount of thereto), $11,300,000, to be allocated as fol- the continuation of projects authorized in $158,399,000, to be allocated as follows: lows: prior years, and land acquisition related Project 98–PVT–2, spent nuclear fuel dry Project 03–D–201, cleanroom technology fa- thereto), $671,732,000, to be allocated as fol- storage, Idaho Falls, Idaho, $53,399,000. cility, Bettis Atomic Power Laboratory, lows: Project 97–PVT–2, advanced mixed waste West Mifflin, Pennsylvania, $7,200,000. Project 03–D–403, immobilized high-level treatment project, Idaho Falls, Idaho, Project 01–D–200, major office replacement waste interim storage facility, Richland, $105,000,000. Washington, $6,363,000. building, Schenectady, New York, $2,100,000. SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL. Project 01–D–416, waste treatment and im- Project 90–N–102, expended core facility dry Funds are hereby authorized to be appro- mobilization plant, Richland, Washington, cell project, Naval Reactors Facility, Idaho, priated to the Department of Energy for fis- $619,000,000. $2,000,000. cal year 2003 for payment to the Nuclear Project 97–D–402, tank farm restoration (B) For program direction, $24,430,000. Waste Fund established in section 302(c) of and safe operations, Richland, Washington, (4) OFFICE OF ADMINISTRATOR FOR NUCLEAR $25,424,000. the Nuclear Waste Policy Act of 1982 (42 SECURITY.—For the Office of the Adminis- Project 94–D–407, initial tank retrieval sys- U.S.C. 10222(c)) in the amount of $215,000,000. trator for Nuclear Security, and for program tems, Richland, Washington, $20,945,000. Subtitle B—Recurring General Provisions direction for the National Nuclear Security (4) SCIENCE AND TECHNOLOGY DEVELOP- Administration (other than for naval reac- SEC. 3121. REPROGRAMMING. MENT.—For science and technology develop- (a) IN GENERAL.—Until the Secretary of tors and secure transportation asset), ment in carrying out environmental manage- Energy submits to the congressional defense $335,705,000. ment activities necessary for national secu- committees the report referred to in sub- SEC. 3102. DEFENSE ENVIRONMENTAL MANAGE- rity programs, $92,000,000. section (b) and a period of 30 days has MENT. (5) EXCESS FACILITIES.—For excess facili- elapsed after the date on which such com- Funds are hereby authorized to be appro- ties in carrying out environmental manage- mittees receive the report, the Secretary priated to the Department of Energy for fis- ment activities necessary for national secu- may not use amounts appropriated pursuant cal year 2003 for environmental management rity programs, $1,300,000. to this title for any program— activities in carrying out programs nec- (6) SAFEGUARDS AND SECURITY.—For safe- (1) in amounts that exceed, in a fiscal essary for national security in the amount of guards and security in carrying out environ- year— $6,710,774,000, to be allocated as follows: mental management activities necessary for (A) 115 percent of the amount authorized (1) CLOSURE PROJECTS.—For closure national security programs, $278,260,000. for that program by this title; or projects carried out in accordance with sec- (7) URANIUM ENRICHMENT DECONTAMINATION (B) $5,000,000 more than the amount au- tion 3143 of the National Defense Authoriza- AND DECOMMISSIONING FUND.—For contribu- thorized for that program by this title; or tion Act for Fiscal Year 1997 (Public Law tion to the Uranium Enrichment Decon- (2) which has not been presented to, or re- 104–201; 110 Stat. 2836; 42 U.S.C. 7277n), tamination and Decommissioning Fund quested of, Congress. $1,109,314,000. under chapter 28 of the Atomic Energy Act (b) REPORT.—(1) The report referred to in (2) SITE/PROJECT COMPLETION.—For site of 1954 (42 U.S.C. 2297g et seq.), $441,000,000. subsection (a) is a report containing a full completion and project completion in car- (8) ENVIRONMENTAL MANAGEMENT CLEANUP and complete statement of the action pro- rying out environmental management ac- REFORM.—For accelerated environmental posed to be taken and the facts and cir- tivities necessary for national security pro- restoration and waste management activi- cumstances relied upon in support of the programs, $793,950,000, to be allocated as follows: ties, $1,000,000,000. posed action. (A) For operation and maintenance, (9) PROGRAM DIRECTION.—For program di- (2) In the computation of the 30-day period $779,706,000. rection in carrying out environmental res- under subsection (a), there shall be excluded (B) For plant projects (including mainte- toration and waste management activities any day on which either House of Congress is nance, restoration, planning, construction, necessary for national security programs, not in session because of an adjournment of acquisition, modification of facilities, and $396,098,000. more than 3 days to a day certain. the continuation of projects authorized in SEC. 3103. OTHER DEFENSE ACTIVITIES. (c) LIMITATIONS.—(1) In no event may the prior years, and land acquisition related Funds are hereby authorized to be appro- total amount of funds obligated pursuant to thereto), $14,244,000, to be allocated as fol- priated to the Department of Energy for fis- this title exceed the total amount authorized lows: cal year 2003 for other defense activities in to be appropriated by this title. Project 02–D–402, Intec cathodic protection carrying out programs necessary for na- (2) Funds appropriated pursuant to this system expansion, Idaho National Engineer- tional security in the amount of $489,883,000, title may not be used for an item for which ing and Environmental Laboratory, Idaho to be allocated as follows: Congress has specifically denied funds. Falls, Idaho, $1,119,000. (1) INTELLIGENCE.—For intelligence, SEC. 3122. LIMITS ON MINOR CONSTRUCTION Project 02–D–420, plutonium stabilization $43,559,000. PROJECTS. and packaging, Savannah River Site, Aiken, (2) COUNTERINTELLIGENCE.—For counter- (a) AUTHORITY.—The Secretary of Energy South Carolina, $2,000,000. intelligence, $48,083,000. may carry out any minor construction Project 01–D–414, project engineering and (3) OFFICE OF SECURITY.—For the Office of project using operation and maintenance design (PED), various locations, $5,125,000. Security for security, $252,218,000, to be allo- funds, or facilities and infrastructure funds, Project 86–D–103, decontamination and cated as follows: authorized by this title. waste treatment facility, Lawrence Liver- (A) For nuclear safeguards and security, (b) ANNUAL REPORT.—The Secretary shall more National Laboratory, Livermore, Cali- $156,102,000. submit to the congressional defense commit- fornia, $6,000,000. (B) For security investigations, $45,870,000. tees on an annual basis a report on each ex- (3) POST-2006 COMPLETION.—For post-2006 (C) For program direction, $50,246,000. ercise of the authority in subsection (a) dur- completion in carrying out environmental (4) INDEPENDENT OVERSIGHT AND PERFORM- ing the preceding year. Each report shall restoration and waste management activi- ANCE ASSURANCE.—For independent oversight provide a brief description of each minor ties necessary for national security pro- and performance assurance, $22,615,000. construction project covered by the report.

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(c) COST VARIATION REPORTS TO CONGRES- tees on Armed Services of the Senate and projects may remain available until ex- SIONAL COMMITTEES.—If, at any time during House of Representatives of any transfer of pended. the construction of any minor construction funds to or from authorizations under this (b) EXCEPTION FOR PROGRAM DIRECTION project authorized by this title, the esti- title. FUNDS.—Amounts appropriated for program mated cost of the project is revised and the SEC. 3125. AUTHORITY FOR CONCEPTUAL AND direction pursuant to an authorization of ap- revised cost of the project exceeds $5,000,000, CONSTRUCTION DESIGN. propriations in subtitle A shall remain avail- the Secretary shall immediately submit to (a) REQUIREMENT OF CONCEPTUAL DESIGN.— able to be expended only until the end of fis- the congressional defense committees a re- (1) Subject to paragraph (2) and except as cal year 2004. port explaining the reasons for the cost vari- provided in paragraph (3), before submitting SEC. 3129. TRANSFER OF DEFENSE ENVIRON- ation. to Congress a request for funds for a con- MENTAL MANAGEMENT FUNDS. (d) MINOR CONSTRUCTION PROJECT DE- struction project that is in support of a na- (a) TRANSFER AUTHORITY FOR DEFENSE EN- FINED.—In this section, the term ‘‘minor con- tional security program of the Department VIRONMENTAL MANAGEMENT FUNDS.—The Sec- struction project’’ means any plant project of Energy, the Secretary of Energy shall retary of Energy shall provide the manager not specifically authorized by law if the ap- complete a conceptual design for that of each field office of the Department of En- proved total estimated cost of the plant project. ergy with the authority to transfer defense project does not exceed $5,000,000. (2) If the estimated cost of completing a environmental management funds from a SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS. conceptual design for a construction project program or project under the jurisdiction of (a) IN GENERAL.—(1) Except as provided in exceeds $3,000,000, the Secretary shall submit that office to another such program or paragraph (2), construction on a construc- to Congress a request for funds for the con- project. tion project may not be started or additional ceptual design before submitting a request (b) LIMITATIONS.—(1) Not more than three obligations incurred in connection with the for funds for the construction project. transfers may be made to or from any pro- project above the total estimated cost, when- (3) The requirement in paragraph (1) does gram or project under subsection (a) in a fis- ever the current estimated cost of the con- not apply to a request for funds— cal year. struction project, authorized by section 3101, (A) for a minor construction project the (2) The amount transferred to or from a 3102, or 3103, or which is in support of na- total estimated cost of which is less than program or project in any one transfer under tional security programs of the Department $5,000,000; or subsection (a) may not exceed $5,000,000. of Energy and was authorized by any pre- (B) for emergency planning, design, and (3) A transfer may not be carried out by a vious Act, exceeds by more than 25 percent construction activities under section 3126. manager of a field office under subsection (a) unless the manager determines that the the higher of— (b) AUTHORITY FOR CONSTRUCTION DESIGN.— (A) the amount authorized for the project; (1) Within the amounts authorized by this transfer is necessary— or title, the Secretary of Energy may carry out (A) to address a risk to health, safety, or (B) the amount of the total estimated cost construction design (including architectural the environment; or for the project as shown in the most recent and engineering services) in connection with (B) to assure the most efficient use of de- budget justification data submitted to Con- any proposed construction project if the fense environmental management funds at gress. total estimated cost for such design does not the field office. (4) Funds transferred pursuant to sub- (2) An action described in paragraph (1) exceed $600,000. section (a) may not be used for an item for may be taken if— (2) If the total estimated cost for construc- which Congress has specifically denied funds (A) the Secretary of Energy has submitted tion design in connection with any construc- or for a new program or project that has not to the congressional defense committees a tion project exceeds $600,000, funds for that been authorized by Congress. report on the actions and the circumstances design must be specifically authorized by (c) EXEMPTION FROM REPROGRAMMING RE- making such action necessary; and law. (B) a period of 30 days has elapsed after the QUIREMENTS.—The requirements of section SEC. 3126. AUTHORITY FOR EMERGENCY PLAN- date on which the report is received by the 3121 shall not apply to transfers of funds pur- NING, DESIGN, AND CONSTRUCTION suant to subsection (a). committees. ACTIVITIES. (b) EXCEPTION.—Subsection (a) does not (d) NOTIFICATION.—The Secretary, acting (a) AUTHORITY.—The Secretary of Energy apply to a construction project with a cur- through the Assistant Secretary of Energy may use any funds available to the Depart- for Environmental Management, shall notify rent estimated cost of less than $5,000,000. ment of Energy pursuant to an authorization SEC. 3124. FUND TRANSFER AUTHORITY. Congress of any transfer of funds pursuant to in this title, including funds authorized to be subsection (a) not later than 30 days after (a) TRANSFER TO OTHER FEDERAL AGEN- appropriated for advance planning, engineer- CIES.—The Secretary of Energy may transfer such transfer occurs. ing, and construction design, and for plant (e) DEFINITIONS.—In this section: funds authorized to be appropriated to the projects, under sections 3101, 3102, 3103, and Department of Energy pursuant to this title (1) The term ‘‘program or project’’ means, 3104 to perform planning, design, and con- with respect to a field office of the Depart- to other Federal agencies for the perform- struction activities for any Department of ance of work for which the funds were au- ment of Energy, any of the following: Energy national security program construc- (A) A program referred to or a project list- thorized. Funds so transferred may be tion project that, as determined by the Sec- merged with and be available for the same ed in paragraph (2) or (3) of section 3102. retary, must proceed expeditiously in order (B) A program or project not described in purposes and for the same time period as the to protect public health and safety, to meet authorizations of the Federal agency to subparagraph (A) that is for environmental the needs of national defense, or to protect restoration or waste management activities which the amounts are transferred. property. (b) TRANSFER WITHIN DEPARTMENT OF EN- necessary for national security programs of (b) LIMITATION.—The Secretary may not ERGY.—(1) Subject to paragraph (2), the Sec- the Department, that is being carried out by exercise the authority under subsection (a) retary of Energy may transfer funds author- that office, and for which defense environ- in the case of any construction project until ized to be appropriated to the Department of mental management funds have been author- the Secretary has submitted to the congres- Energy pursuant to this title between any ized and appropriated before the date of the sional defense committees a report on the such authorizations. Amounts of authoriza- enactment of this Act. activities that the Secretary intends to tions so transferred may be merged with and (2) The term ‘‘defense environmental man- carry out under this section and the cir- be available for the same purposes and for agement funds’’ means funds appropriated to cumstances making those activities nec- the same period as the authorization to the Department of Energy pursuant to an au- essary. which the amounts are transferred. thorization for carrying out environmental (c) SPECIFIC AUTHORITY.—The requirement (2) Not more than 5 percent of any such au- restoration and waste management activi- of section 3125(b)(2) does not apply to emer- thorization may be transferred between au- ties necessary for national security pro- gency planning, design, and construction ac- thorizations under paragraph (1). No such au- grams. tivities conducted under this section. thorization may be increased or decreased by (f) DURATION OF AUTHORITY.—The man- more than 5 percent by a transfer under such SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL agers of the field offices of the Department paragraph. SECURITY PROGRAMS OF THE DE- may exercise the authority provided under PARTMENT OF ENERGY. (c) LIMITATIONS.—The authority provided subsection (a) during the period beginning on by this subsection to transfer Subject to the provisions of appropriation October 1, 2002, and ending on September 30, authorizations— Acts and section 3121, amounts appropriated 2003. (1) may be used only to provide funds for pursuant to this title for management and SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES items relating to activities necessary for na- support activities and for general plant FUNDS. tional security programs that have a higher projects are available for use, when nec- (a) TRANSFER AUTHORITY FOR WEAPONS AC- priority than the items from which the funds essary, in connection with all national secu- TIVITIES FUNDS.—The Secretary of Energy are transferred; and rity programs of the Department of Energy. shall provide the manager of each field office (2) may not be used to provide funds for an SEC. 3128. AVAILABILITY OF FUNDS. of the Department of Energy with the au- item for which Congress has specifically de- (a) IN GENERAL.—Except as provided in thority to transfer weapons activities funds nied funds. subsection (b), when so specified in an appro- from a program or project under the jurisdic- (d) NOTICE TO CONGRESS.—The Secretary of priations Act, amounts appropriated for option of that office to another such program Energy shall promptly notify the Commit- eration and maintenance or for plant or project.

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(b) LIMITATIONS.—(1) Not more than three (c) AVAILABILITY OF FUNDS IF CRITERIA ARE SEC. 3134. REQUIREMENTS FOR SPECIFIC RE- transfers may be made to or from any pro- NOT ESTABLISHED.—(1) If the Secretary exer- QUEST FOR NEW OR MODIFIED NU- gram or project under subsection (a) in a fis- cises the authority under subsection (a)(2), CLEAR WEAPONS. cal year. the Secretary shall reallocate the funds re- (a) REQUIREMENT FOR REQUEST FOR FUNDS (2) The amount transferred to or from a ferred to in subsection (a) among sites that FOR DEVELOPMENT.—(1) In any fiscal year program or project in any one transfer under received funds during fiscal year 2002 for de- after fiscal year 2002 in which the Secretary subsection (a) may not exceed $5,000,000. fense environmental restoration and waste of Energy plans to carry out activities de- (3) A transfer may not be carried out by a management activities under section 3102 of scribed in paragraph (2) relating to the devel- manager of a field office under subsection (a) the National Defense Authorization Act for opment of a new nuclear weapon or modified unless the manager determines that the Fiscal Year 2002 (Public Law 107–197; 115 nuclear weapon, the Secretary shall specifi- transfer— Stat. 1358). cally request funds for such activities in the budget of the President for that fiscal year (A) is necessary to address a risk to health, (2) The amount of funds referred to in sub- under section 1105(a) of title 31, United safety, or the environment; or section (a) that are allocated under para- (B) will result in cost savings and effi- States Code. graph (1) to a site described in that para- (2) The activities described in this para- ciencies. graph shall bear the same ratio to the (4) A transfer may not be carried out by a graph are as follows: amount of funds referred to in subsection (a) manager of a field office under subsection (a) (A) The conduct, or provision for conduct, as the amount of funds received by such site to cover a cost overrun or scheduling delay of research and development which could during fiscal year 2002 under section 3102 of for any program or project. lead to the production of a new nuclear the National Defense Authorization Act for (5) Funds transferred pursuant to sub- weapon by the United States. Fiscal Year 2002 bears to the total amount of section (a) may not be used for an item for (B) The conduct, or provision for conduct, funds made available to all sites during fis- which Congress has specifically denied funds of engineering or manufacturing to carry out cal year 2002 under that section. or for a new program or project that has not the production of a new nuclear weapon by been authorized by Congress. (3) No funds allocated under paragraph (1) the United States. (c) EXEMPTION FROM REPROGRAMMING RE- may be obligated or expended until 30 days (C) The conduct, or provision for conduct, QUIREMENTS.—The requirements of section after the Secretary submits to the congres- of research and development which could 3121 shall not apply to transfers of funds pur- sional defense committee a list of the lead to the production of a modified nuclear suant to subsection (a). projects at each site allocated funds under weapon by the United States. (d) NOTIFICATION.—The Secretary, acting that paragraph, and the amount of such (D) The conduct, or provision for conduct, through the Administrator for Nuclear Secu- funds to be provided to each such project at of engineering or manufacturing to carry out rity, shall notify Congress of any transfer of each such site. the production of a modified nuclear weapon funds pursuant to subsection (a) not later (4) Funds referred to in subsection (a) may by the United States. than 30 days after such transfer occurs. not be obligated or expended for any site (b) BUDGET REQUEST FORMAT.—The Sec- (e) DEFINITIONS.—In this section: that was not funded in fiscal year 2002 from retary shall include in a request for funds (1) The term ‘‘program or project’’ means, amounts available to the Department of En- under subsection (a) the following: with respect to a field office of the Depart- ergy under title XXXI of the National De- (1) In the case of funds for activities de- ment of Energy, any of the following: fense Authorization Act for Fiscal Year 2002. scribed in subparagraph (A) or (C) of sub- (A) A program referred to or a project list- SEC. 3132. ROBUST NUCLEAR EARTH PENE- section (a)(2), a dedicated line item for each ed in section 3101(1). TRATOR. such activity for a new nuclear weapon or (B) A program or project not described in Not later than February 3, 2003, the Sec- modified nuclear weapons that is in phase 1 subparagraph (A) that is for weapons activi- retary of Defense shall, in consultation with or 2A or phase 6.1 or 6.2A, as the case may be, ties necessary for national security pro- the Secretary of Energy, submit to the con- of the nuclear weapons acquisition process. grams of the Department, that is being car- gressional defense committees a report on (2) In the case of funds for activities de- ried out by that office, and for which weap- the Robust Nuclear Earth Penetrator scribed in subparagraph (B) or (D) of sub- ons activities funds have been authorized (RNEP). The report shall set forth— section (a)(2), a dedicated line item for each and appropriated before the date of the en- (1) the military requirements for the Ro- such activity for a new nuclear weapon or actment of this Act. bust Nuclear Earth Penetrator; modified nuclear weapon that is in phase 3 or (2) The term ‘‘weapons activities funds’’ (2) the nuclear weapons employment policy higher or phase 6.3 or higher, as the case may means funds appropriated to the Department regarding the Robust Nuclear Earth Pene- be, of the nuclear weapons acquisition proc- of Energy pursuant to an authorization for trator; ess. carrying out weapons activities necessary (3) a detailed description of the categories (c) EXCEPTION.—Subsections (a) shall not for national security programs. or types of targets that the Robust Nuclear apply to funds for purposes of conducting, or (f) DURATION OF AUTHORITY.—The man- providing for the conduct of, research and agers of the field offices of the Department Earth Penetrator is designed to hold at risk; and development, or manufacturing and engi- may exercise the authority provided under neering, determined by the Secretary to be subsection (a) during the period beginning on (4) an assessment of the ability of conventional weapons to address the same cat- necessary— October 1, 2002, and ending on September 30, (1) for the nuclear weapons life extension 2003. egories and types of targets described under paragraph (3). program; Subtitle C—Program Authorizations, (2) to modify an existing nuclear weapon Restrictions, and Limitations SEC. 3133. DATABASE TO TRACK NOTIFICATION solely to address safety or reliability con- AND RESOLUTION PHASES OF SIG- cerns; or SEC. 3131. AVAILABILITY OF FUNDS FOR ENVI- NIFICANT FINDING INVESTIGA- RONMENTAL MANAGEMENT CLEAN- TIONS. (3) to address proliferation concerns. UP REFORM. (d) CONSTRUCTION WITH PROHIBITION ON RE- VAILABILITY OF UNDS FOR ATA (a) LIMITATION ON AVAILABILITY FOR ENVI- (a) A F D - SEARCH AND DEVELOPMENT ON LOW-YIELD NU- BASE RONMENTAL MANAGEMENT CLEANUP RE- .—Amounts authorized to be appro- CLEAR WEAPONS.—Nothing in this section FORM.—None of the funds authorized to be priated by section 3101(1) for the National may be construed to modify, repeal, or in appropriated by section 3102(8) for the De- Nuclear Security Administration for weap- any way affect the provisions of section 3136 partment of Energy for environmental man- ons activities shall be available to the Dep- of the National Defense Authorization Act agement cleanup reform may be obligated or uty Administrator for Nuclear Security for for Fiscal Year 1994 (Public Law 103–160; 107 expended until the Secretary of Energy— Defense Programs for the development and Stat. 1946; 42 U.S.C. 2121 note), relating to (1) publishes in the Federal Register, and implementation of a database for all na- prohibitions on research and development on submits to the congressional defense com- tional security laboratories to track the no- low-yield nuclear weapons. mittees, a report setting forth criteria estab- tification and resolution phases of Signifi- (e) DEFINITIONS.—In this section: lished by the Secretary— cant Finding Investigations (SFIs). The pur- (1) The term ‘‘life extension program’’ (A) for selecting the projects that will re- pose of the database is to facilitate the mon- means the program to repair or replace non- ceive funding using such funds; and itoring of the progress and accountability of nuclear components, or to modify the pit or (B) for setting priorities among the the national security laboratories in Signifi- canned subassembly, of nuclear weapons in projects selected under subparagraph (A); or cant Finding Investigations. the nuclear weapons stockpile on the date of (2) notifies the congressional defense com- (b) IMPLEMENTATION DEADLINE.—The data- the enactment of this Act in order to assure mittees that the criteria described by para- base required by subsection (a) shall be im- that such nuclear weapons retain the ability graph (1) will not be established. plemented not later than September 30, 2003. to meet the military requirements applica- (b) REQUIREMENTS REGARDING ESTABLISH- (c) NATIONAL SECURITY LABORATORY DE- ble to such nuclear weapons when first MENT OF CRITERIA.—Before establishing cri- FINED.—In this section, the term ‘‘national placed in the nuclear weapons stockpile. teria, if any, under subsection (a)(1), the Sec- security laboratory’’ has the meaning given (2) The term ‘‘modified nuclear weapon’’ retary shall publish a proposal for such cri- that term in section 3281(1) of the National means a nuclear weapon that contains a pit teria in the Federal Register, and shall pro- Nuclear Security Administration Act (title or canned subassembly, either of which— vide a period of 45 days for public notice and XXXII of Public Law 106–65; 113 Stat. 968; 50 (A) is in the nuclear weapons stockpile as comment on the proposal. U.S.C. 2471(1)). of the date of the enactment of this Act; and

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(B) is being modified in order to meet a (b) TRANSFER OF ASSOCIATED FUNDS.—(1) SEC. 3154. TESTING OF PREPAREDNESS FOR military requirement that is other than the Notwithstanding any restriction or limita- EMERGENCIES INVOLVING NU- military requirements applicable to such nu- tion in law on the availability of Cooperative CLEAR, RADIOLOGICAL, CHEMICAL, clear weapon when first placed in the nuclear Threat Reduction funds specified in para- OR BIOLOGICAL WEAPONS. weapons stockpile. graph (2), the Cooperative Threat Reduction (a) EXTENSION OF TESTING.—Section 1415 of (3) The term ‘‘new nuclear weapon’’ means funds specified in that paragraph that are the Defense Against Weapons of Mass De- a nuclear weapon that contains a pit or available for the program referred to in sub- struction Act of 1996 (title XIV of Public Law canned subassembly, either of which is section (a) shall be transferred from the De- 104–201; 110 Stat. 2720; 50 U.S.C. 2315) is neither— partment of Defense to the Department of amended— (A) in the nuclear weapons stockpile on the Energy. (1) in subsection (a)(2), by striking ‘‘of five successive fiscal years beginning with fiscal date of the enactment of this Act; nor (2) The Cooperative Threat Reduction year 1997’’ and inserting ‘‘of fiscal years 1997 (B) in production as of that date. funds specified in this paragraph are the fol- through 2013’’; and SEC. 3135. REQUIREMENT FOR AUTHORIZATION lowing: (2) in subsection (b)(2), by striking ‘‘of five BY LAW FOR FUNDS OBLIGATED OR (A) Fiscal year 2002 Cooperative Threat Re- successive fiscal years beginning with fiscal EXPENDED FOR DEPARTMENT OF duction funds, as specified in section 1301(b) year 1997’’ and inserting ‘‘of fiscal years 1997 ENERGY NATIONAL SECURITY AC- of the National Defense Authorization Act TIVITIES. through 2013’’. for Fiscal Year 2002 (Public Law 107–107; 115 Section 660 of the Department of Energy (b) CONSTRUCTION OF EXTENSION WITH DES- Stat. 1254; 22 U.S.C. 5952 note). Organization Act (42 U.S.C. 7270) is IGNATION OF ATTORNEY GENERAL AS LEAD OF- (B) Fiscal year 2001 Cooperative Threat Re- amended— FICIAL.—The amendment made by subsection duction funds, as specified in section 1301(b) (1) by inserting ‘‘(a)’’ before ‘‘Appropria- (a) may not be construed as modifying the of the Floyd D. Spence National Defense Au- tions’’; and designation of the President entitled ‘‘Des- thorization Act for Fiscal Year 2001 (as en- (2) by adding at the end the following new ignation of the Attorney General as the Lead acted into law by Public Law 106–398; 114 subsection: Official for the Emergency Response Assist- Stat. 1654A–339). ‘‘(b)(1) No funds for the Department may ance Program Under Sections 1412 and 1415 of (C) Fiscal year 2000 Cooperative Threat Re- be obligated or expended for— the National Defense Authorization Act for duction funds, as specified in section 1301(b) ‘‘(A) national security programs and ac- Fiscal Year 1997’’, dated April 6, 2000, desig- of the National Defense Authorization Act tivities of the Department; or nating the Attorney General to assume pro- for Fiscal Year 2000 (Public Law 106–65; 113 ‘‘(B) activities under the Atomic Energy grammatic and funding responsibilities for Stat. 792; 22 U.S.C. 5952 note). Act of 1954 (42 U.S.C. 2012 et seq.); the Emergency Response Assistance Pro- (c) AVAILABILITY OF TRANSFERRED FUNDS.— unless funds therefor have been specifically gram under sections 1412 and 1415 of the De- (1) Notwithstanding any restriction or limi- authorized by law. fense Against Weapons of Mass Destruction ‘‘(2) Nothing in paragraph (1) may be con- tation in law on the availability of Coopera- Act of 1996. strued to preclude the requirement under tive Threat Reduction funds specified in subsection (b)(2), the Cooperative Threat Reduc- SEC. 3155. PROGRAM ON RESEARCH AND TECH- subsection (a), or under any other provision NOLOGY FOR PROTECTION FROM of law, for an authorization of appropriations tion funds transferred under subsection (b) NUCLEAR OR RADIOLOGICAL TER- for programs and activities of the Depart- for the program referred to in subsection (a) RORISM. ment (other than programs and activities shall be available for activities as follows: (a) PROGRAM REQUIRED.—(1) The Adminis- covered by that paragraph) as a condition to (A) To design and construct, refurbish, or trator for Nuclear Security shall carry out a the obligation and expenditure of funds for both, fossil fuel energy plants in Russia that program on research and technology for pro- programs and activities of the Department provide alternative sources of energy to the tection from nuclear or radiological ter- (other than programs and activities covered energy plants in Russia that produce weap- rorism, including technology for the detec- by that paragraph).’’. ons grade plutonium. tion (particularly as border crossings and (B) To carry out limited safety upgrades of SEC. 3136. LIMITATION ON AVAILABILITY OF ports of entry), identification, assessment, FUNDS FOR PROGRAM TO ELIMI- not more than three energy plants in Russia control, disposition, consequence manage- NATE WEAPONS GRADE PLUTONIUM that produce weapons grade plutonium in ment, and consequence mitigation of the dis- PRODUCTION IN RUSSIA. order to permit the shutdown of such energy persal of radiological materials or of nuclear (a) LIMITATION.—Of the amounts author- plants and eliminate the production of weap- terrorism. ized to be appropriated by this title for the ons grade plutonium in such energy plants. (2) The Administrator shall carry out the program to eliminate weapons grade pluto- (2) Amounts available under paragraph (1) program as part of the support of the Admin- nium production, the Administrator for Nu- for activities referred to in that paragraph istrator for homeland security and clear Security may not obligate or expend shall remain available for such activities counterterrorism within the National Nu- more than $100,000,000 for that program until until expended. clear Security Administration 30 days after the date on which the Adminis- SEC. 3152. REPEAL OF REQUIREMENT FOR RE- (b) PROGRAM ELEMENTS.—In carrying out trator submits to the congressional defense PORTS ON OBLIGATION OF FUNDS the program required by subsection (a), the committees a copy of an agreement entered FOR PROGRAMS ON FISSILE MATE- Administrator shall— into between the United States Government RIALS IN RUSSIA. (1) provide for the development of tech- and the Government of the Russian Federa- Section 3131 of the National Defense Au- nologies to respond to threats or incidents tion to shut down the three plutonium-pro- thorization Act for Fiscal Year 1996 (Public involving nuclear or radiological terrorism ducing reactors in Russia. Law 104–106; 110 Stat. 617; 22 U.S.C. 5952 note) in the United States; (b) AGREEMENT ELEMENTS.—The agreement is amended— (2) demonstrate applications of the tech- under subsection (a)— (1) in subsection (a), by striking ‘‘(a) AU- nologies developed under paragraph (1), in- (1) shall contain— THORITY.—’’; and cluding joint demonstrations with the Office (A) a commitment to shut down the three (2) by striking subsection (b). of Homeland Security and other appropriate plutonium-producing reactors; SEC. 3153. EXPANSION OF ANNUAL REPORTS ON Federal agencies; (B) the date on which each such reactor STATUS OF NUCLEAR MATERIALS (3) provide, where feasible, for the develop- will be shut down; PROTECTION, CONTROL, AND AC- ment in cooperation with the Russian Fed- (C) a schedule and milestones for each such COUNTING PROGRAMS. eration of technologies to respond to nuclear reactor to complete the shut down of such (a) COVERED PROGRAMS.—Subsection (a) of or radiological terrorism in the former reactor by the date specified under subpara- section 3171 of the Floyd D. Spence National states of the Soviet Union, including the graph (B); Defense Authorization Act for Fiscal Year demonstration of technologies so developed; (D) an arrangement for access to sites and 2001 (as enacted into law by Public Law 106– (4) provide, where feasible, assistance to facilities necessary to meet such schedules 398; 114 Stat. 1654A–475) is amended by strik- other countries on matters relating to nu- and milestones; and ing ‘‘Russia that’’ and inserting ‘‘countries clear or radiological terrorism, including— (E) an arrangement for audit and examina- where such materials’’. (A) the provision of technology and assist- tion procedures in order to evaluate progress (b) REPORT CONTENTS.—Subsection (b) of ance on means of addressing nuclear or radi- in meeting such schedules and milestones; that section is amended— ological incidents; and (1) in paragraph (1) by inserting ‘‘in each (B) the provision of assistance in devel- (2) may include cost sharing arrangements. country covered by subsection (a)’’ after ‘‘lo- oping means for the safe disposal of radio- Subtitle D—Proliferation Matters cations,’’; active materials; SEC. 3151. ADMINISTRATION OF PROGRAM TO (2) in paragraph (2), by striking ‘‘in Rus- (C) in coordination with the Nuclear Regu- ELIMINATE WEAPONS GRADE PLU- sia’’ and inserting ‘‘in each such country’’; latory Commission, the provision of assist- TONIUM PRODUCTION IN RUSSIA. (3) in paragraph (3), by inserting ‘‘in each ance in developing the regulatory framework (a) TRANSFER OF PROGRAM TO DEPARTMENT such country’’ after ‘‘subsection (a)’’; and for licensing and developing programs for OF ENERGY.—The program to eliminate (4) in paragraph (5), by striking ‘‘by total the protection and control of radioactive weapons grade plutonium production in Rus- amount and by amount per fiscal year’’ and sources; and sia shall be transferred from the Department inserting ‘‘by total amount per country and (D) the provision of assistance in evalu- of Defense to the Department of Energy. by amount per fiscal year per country’’. ating the radiological sources identified as

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00100 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.029 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6427 not under current accounting programs in grams, as well the sensitivity of any infor- (ii) an assessment of the costs of securing the report of the Inspector General of the mation involved regarding United States such radiological materials at such sites; Department of Energy entitled ‘‘Accounting weapons or weapons systems. (iii) a description of any cost-sharing ar- for Sealed Sources of Nuclear Material Pro- (3) The Secretary of Energy may include rangements to defray such costs; vided to Foreign Countries’’, and in identi- the Russian Federation in activities under (iv) a description of any legal impediments fying and controlling radiological sources paragraph (1) if the Secretary determines to such effort, including a description of that represent significant risks; and that the experience of the Russian Federa- means of overcoming such impediments; and (5) in coordination with the Office of Envi- tion under the International Materials Pro- (v) a description of the coordination re- ronment, Safety, and Health of the Depart- tection, Control, and Accounting program quired for such effort among appropriate ment of Energy, the Department of Com- with the Russian Federation would make the United States Government entities (includ- merce, and the International Atomic Energy participation of the Russian Federation in ing the Nuclear Regulatory Commission), Agency, develop consistent criteria for such activities useful in providing technical participating countries, and international screening international transfers of radio- assistance under that paragraph. bodies (including the International Atomic logical materials. (d) PLAN FOR ACCELERATED CONVERSION OR Energy Agency). (c) REQUIREMENTS FOR INTERNATIONAL ELE- RETURN OF WEAPONS-USABLE NUCLEAR MATE- (D) A description of the pilot project un- MENTS OF PROGRAM.—(1) In carrying out ac- RIALS.—(1) The Secretary shall develop a dertaken in Russia. tivities in accordance with paragraphs (3) plan to accelerate the conversion or return (3) In identifying categories of radiological and (4) of subsection (b), the Administrator to the country of origin of all weapons-usa- materials under paragraph (2)(A), the Sec- shall consult with— ble nuclear materials located in research re- retary shall take into account matters relat- (A) the Secretary of Defense, Secretary of actors and other facilities outside the coun- ing to specific activity, half-life, radiation State, and Secretary of Commerce; and try of origin. type and energy, attainability, difficulty of (B) the International Atomic Energy Agen- (2) The plan under paragraph (1) for nu- handling, and toxicity, and such other mat- cy. clear materials of origin in the Soviet Union ters as the Secretary considers appropriate. (2) The Administrator shall encourage shall be developed in consultation with the (4) Not later than one year after the date of joint leadership between the United States Russian Federation. the enactment of this Act, the Secretary and the Russian Federation of activities on (3) As part of the plan under paragraph (1), shall submit to Congress a report on the the development of technologies under sub- the Secretary shall identify the funding and study conducted under this subsection. The section (b)(4). schedules required to assist the research re- report shall include the matters specified (d) INCORPORATION OF RESULTS IN EMER- actors and facilities referred to in that para- under paragraph (2) and such other matters, GENCY RESPONSE ASSISTANCE PROGRAM.—To graph in upgrading their materials protec- including recommendations, as the Sec- the maximum extent practicable, the tech- tion, control, and accounting procedures retary considers appropriate as a result of nologies and information developed under until the weapons-usable nuclear materials the study. the program required by subsection (a) shall in such reactors and facilities are converted (5) In this subsection, the term ‘‘radio- be incorporated into the program on re- or returned in accordance with that para- logical material’’ means any radioactive ma- sponses to emergencies involving nuclear graph. terial, other than plutonium (Pu) or uranium and radiological weapons carried out under (4) The provision of assistance under para- enriched above 20 percent uranium–235. section 1415 of the Defense Against Weapons graph (3) shall be closely coordinated with (g) AMENDMENT OF CONVENTION ON PHYS- of Mass Destruction Act of 1996 (title XIV of ongoing efforts of the International Atomic ICAL PROTECTION OF NUCLEAR MATERIAL.—(1) Public Law 104–201; 50 U.S.C. 2315). Energy Agency for the same purpose. It is the sense of Congress that the President (e) AMOUNT FOR ACTIVITIES.—Of the (e) RADIOLOGICAL DISPERSAL DEVICE MATE- should encourage amendment of the Conven- amount authorized to be appropriated by RIALS PROTECTION, CONTROL, AND ACCOUNT- tion on the Physical Protection of Nuclear section 3101(2) for the Department of Energy ING.—(1) The Secretary shall establish within Materials in order to provide that the Con- for the National Nuclear Security Adminis- the International Materials Protection, Con- vention shall— tration for defense nuclear nonproliferation trol, and Accounting program a program on (A) apply to both the domestic and inter- and available for the development of a new the protection, control, and accounting of national use and transport of nuclear mate- generation of radiation detectors for home- materials usable in radiological dispersal de- rials; land defense, up to $15,000,000 shall be avail- vices. (B) incorporate fundamental practices for (2) The program under paragraph (1) shall able for carrying out this section. the physical protection of such materials; include— SEC. 3156. EXPANSION OF INTERNATIONAL MATE- and (A) an identification of vulnerabilities re- RIALS PROTECTION, CONTROL, AND (C) address protection against sabotage in- garding radiological materials worldwide; ACCOUNTING PROGRAM. volving nuclear materials. (a) EXPANSION OF PROGRAM TO ADDITIONAL (B) the mitigation of vulnerabilities so (2) In this subsection, the term ‘‘Conven- COUNTRIES AUTHORIZED.—The Secretary of identified through appropriate security en- tion on the Physical Protection of Nuclear Energy may expand the International Mate- hancements; and Materials’’ means the Convention on the rials Protection, Control, and Accounting (C) an acceleration of efforts to recover Physical Protection of Nuclear Materials, (MPC&A) program of the Department of En- and control diffused radiation sources and With Annex, done at Vienna on October 26, ergy to encompass countries outside the ‘orphaned’’ radiological sources that are of 1979. Russian Federation and the independent sufficient strength to represent a significant (h) AMOUNT FOR ACTIVITIES.—Of the states of the former Soviet Union. risk. amount authorized to be appropriated by (b) NOTICE TO CONGRESS OF USE OF FUNDS (3) The program under paragraph (1) shall section 3102(2) for the Department of Energy FOR ADDITIONAL COUNTRIES.—Not later than be known as the Radiological Dispersal De- for the National Nuclear Security Adminis- 30 days after the Secretary obligates funds vice Materials Protection, Control, and Ac- tration for defense nuclear nonproliferation, for the International Materials Protection, counting program. up to $5,000,000 shall be available for carrying Control, and Accounting program, as ex- (f) STUDY OF PROGRAM TO SECURE CERTAIN out this section. RADIOLOGICAL MATERIALS.—(1) The Sec- panded under subsection (a), for activities in SEC. 3157. ACCELERATED DISPOSITION OF HIGH- or with respect to a country outside the Rus- retary, acting through the Administrator for LY ENRICHED URANIUM AND PLUTO- sian Federation and the independent states Nuclear Security, shall require the Office of NIUM. of the former Soviet Union, the Secretary International Materials Protection, Control, (a) SENSE OF CONGRESS ON PROGRAM TO SE- shall submit to Congress a notice of the obli- and Accounting of the Department of Energy CURE STOCKPILES OF HIGHLY ENRICHED URA- gation of such funds for such activities. to conduct a study to determine the feasi- NIUM AND PLUTONIUM.—(1) It is the sense of (c) ASSISTANCE TO DEPARTMENT OF STATE bility and advisability of developing a pro- Congress that the Secretary of Energy, in FOR NUCLEAR MATERIALS SECURITY PRO- gram to secure radiological materials out- consultation with the Secretary of State and GRAMS.—(1) As part of the International Ma- side the United States that pose a threat to Secretary of Defense, should develop a com- terials Protection, Control, and Accounting the national security of the United States. prehensive program of activities to encour- program, the Secretary of Energy may pro- (2) The study under paragraph (1) shall in- age all countries with nuclear materials to vide technical assistance to the Secretary of clude the following: adhere to, or to adopt standards equivalent State in the efforts of the Secretary of State (A) An identification of the categories of to, the International Atomic Energy Agency to assist other nuclear weapons states to re- radiological materials that are covered by standard on The Physical Protection of Nu- view and improve their nuclear materials se- that paragraph, including an order of pri- clear Material and Nuclear Facilities curity programs. ority for securing each category of such radi- (INFCIRC/225/Rev.4), relating to the security (2) The technical assistance provided under ological materials. of stockpiles of highly enriched uranium paragraph (1) may include the sharing of (B) An estimate of the number of sites at (HEU) and plutonium (Pu). technology or methodologies to the states which such radiological materials are (2) To the maximum extent practicable, referred to in that paragraph. Any such shar- present. the program should be developed in consulta- ing shall— (C) An assessment of the effort required to tion with the Russian Federation, other (A) be consistent with the treaty obliga- secure such radiological materials at such Group of 8 countries, and other allies of the tions of the United States; and sites, including— United States. (B) take into account the sovereignty of (i) a description of the security upgrades, if (3) Activities under the program should in- the state concerned and its weapons pro- any, that are required at such sites; clude specific, targeted incentives intended

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00101 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.030 pfrm12 PsN: S08PT1 S6428 CONGRESSIONAL RECORD — SENATE July 8, 2002 to encourage countries that cannot under- under subsection (b), the Secretary may en- under the agreement described in subsection take the expense of conforming to the stand- courage nations with highly enriched ura- (b)). ard referred to in paragraph (1) to relinquish nium to transfer such uranium to the Rus- (2) As part of the negotiations, the Sec- their highly enriched uranium (HEU) or plu- sian Federation for disposition under this retary of Energy may consider providing ad- tonium (Pu), including incentives in which a section. ditional funds to the Ministry of Atomic En- country, group of countries, or international (2) The Secretary may pay any nation that ergy in order to reach a successful agree- body— transfers highly enriched uranium to the ment. (A) purchase such materials and provide Russian Federation under this subsection an (3) If such an agreement, meeting the re- for their security (including by removal to amount determined appropriate by the Sec- quirements in subsection (c), is reached with another location); retary. the Ministry of Atomic Energy, which re- (B) undertake the costs of decommis- (3) The Secretary may bear the cost of any quires additional funds for the Russian work, sioning facilities that house such materials; blending and storage of uranium transferred the Secretary shall either seek authority to (C) in the case of research reactors, con- to the Russian Federation under this sub- use funds available for another purpose, or vert such reactors to low-enriched uranium section, including any costs of blending and request supplemental appropriations, for reactors; or storage under a contract under subsection such work. (D) upgrade the security of facilities that (h). Any site selected for such storage shall (b) AGREEMENT.—The agreement referred house such materials in order to meet strin- have undergone complete materials protec- to in subsection (a) is the Agreement Be- gent security standards that are established tion, control, and accounting upgrades between the Government of the United States for purposes of the program based upon fore the commencement of such storage. of America and the Government of the Rus- agreed best practices. (h) CONTRACTS FOR BLENDING AND STORAGE sian Federation Concerning the Management (b) PROGRAM ON ACCELERATED DISPOSITION OF HIGHLY ENRICHED URANIUM IN RUSSIA.—(1) and Disposition of Plutonium Designated As OF HEU AUTHORIZED.—(1) The Secretary of As part of the program under subsection (b), No Longer Required For Defense Purposes Energy may carry out a program to pursue the Secretary may enter into one or more and Related Cooperation, signed August 29, with the Russian Federation, and any other contracts with the Russian Federation— 2000, and September 1, 2000. nation that possesses highly enriched ura- (A) to blend in the Russian Federation (c) REQUIREMENT FOR DISPOSITION PRO- nium, options for blending such uranium so highly enriched uranium of the Russian Fed- GRAM.— The plutonium disposition program that the concentration of U–235 in such ura- eration and highly enriched uranium trans- under subsection (a)— nium is below 20 percent. ferred to the Russian Federation under sub- (1) shall include transparent verifiable (2) The options pursued under paragraph (1) section (g); or steps; shall include expansion of the Material Con- (B) to store in the Russian Federation (2) shall proceed at a rate approximately solidation and Conversion program of the highly enriched uranium before blending or equivalent to the rate of the United States Department of Energy to include— the blended material. program for the disposition of plutonium; (A) additional facilities for the blending of (2) Any site selected for the storage of ura- (3) shall provide for cost-sharing among a highly enriched uranium; and nium or blended material under paragraph variety of countries; (B) additional centralized secure storage (1)(B) shall have undergone complete mate- (4) shall provide for contributions by the facilities for highly enriched uranium des- rials protection, control, and accounting up- Russian Federation; ignated for blending. grades before the commencement of such (5) shall include steps over the near term (c) INCENTIVES REGARDING HIGHLY EN- storage. to provide high confidence that the schedules RICHED URANIUM IN RUSSIA.—As part of the (i) LIMITATION ON RELEASE FOR SALE OF for the disposition of plutonium of the Rus- options pursued under subsection (b) with BLENDED URANIUM.—Uranium blended under sian Federation will be achieved; and the Russian Federation, the Secretary may this section may not be released for sale (6) may include research on more specula- provide financial and other incentives for the until the earlier of— tive long-term options for the future disposi- removal of all highly enriched uranium from (1) January 1, 2014; or tion of the plutonium of the Russian Federa- any particular facility in the Russian Fed- (2) the date on which the Secretary cer- tion in addition to the near-term steps under eration if the Secretary determines that tifies that such uranium can be absorbed paragraph (5). such incentives will facilitate the consolida- into the global market without undue dis- SEC. 3159. STRENGTHENED INTERNATIONAL SE- tion of highly enriched uranium in the Rus- ruption to the uranium mining industry in CURITY FOR NUCLEAR MATERIALS sian Federation to the best-secured facili- the United States. AND SAFETY AND SECURITY OF NU- ties. (j) PROCEEDS OF SALE OF URANIUM BLENDED CLEAR OPERATIONS. (d) CONSTRUCTION WITH HEU DISPOSITION BY RUSSIA.—Upon the sale by the Russian (a) REPORT ON OPTIONS FOR INTERNATIONAL AGREEMENT.—Nothing in this section may be Federation of uranium blended under this PROGRAM TO STRENGTHEN SECURITY AND construed as terminating, modifying, or oth- section by the Russian Federation, the Sec- SAFETY.—(1) Not later than 270 days after erwise effecting requirements for the disposi- retary may elect to receive from the pro- the date of the enactment of this Act, the tion of highly enriched uranium under the ceeds of such sale an amount not to exceed 75 Secretary of Energy shall submit to Con- Agreement Between the Government of the percent of the costs incurred by the Depart- gress a report on options for an international United States of America and the Govern- ment of Energy under subsections (c), (g), program to develop strengthened security for ment of the Russian Federation Concerning and (h). all nuclear materials and safety and security the Disposition of Highly Enriched Uranium (k) REPORT ON STATUS OF PROGRAM.—Not for current nuclear operations. Extracted from Nuclear Weapons, signed at later than July 1, 2003, the Secretary shall (2) The Secretary shall consult with the Of- Washington on February 18, 1993. submit to Congress a report on the status of fice of Nuclear Energy Science and Tech- (e) PRIORITY IN BLENDING ACTIVITIES.—In the program carried out under the authority nology of the Department of Energy in the pursuing options under this section, the Sec- in subsection (b). The report shall include— development of options for purposes of the retary shall give priority to the blending of (1) a description of international interest report. highly enriched uranium from weapons, in the program; (3) In evaluating options for purposes of though highly enriched uranium from (2) schedules and operational details of the the report, the Secretary shall consult with sources other than weapons may also be program; and the Nuclear Regulatory Commission and the blended. (3) recommendations for future funding for International Atomic Energy Agency on the (f) TRANSFER OF HIGHLY ENRICHED URANIUM the program. feasibility and advisability of actions to re- AND PLUTONIUM TO UNITED STATES.—(1) As (l) HIGHLY ENRICHED URANIUM DEFINED.—In duce the risks associated with terrorist at- part of the program under subsection (b), the this section, the term ‘‘highly enriched ura- tacks on nuclear power plants outside the Secretary may, upon the request of any nium’’ means uranium with a concentration United States. nation— of U–235 of 20 percent or more. (4) Each option for an international pro- (A) purchase highly enriched uranium or (m) AMOUNT FOR ACTIVITIES.—Of the gram under paragraph (1) may provide that weapons grade plutonium from the nation at amount to be appropriated by section 3102(2) the program is jointly led by the United a price determined by the Secretary; for the Department of Energy for the Na- States, the Russian Federation, and the (B) transport any uranium or plutonium so tional Nuclear Security Administration for International Atomic Energy Agency. purchased to the United States; and defense nuclear nonproliferation, up to (5) The Secretary shall include with the re- (C) store any uranium or plutonium so $40,000,000 shall be available for carrying out port on options for an international program transported in the United States. this section. under paragraph (1) a description and assess- (2) The Secretary is not required to blend SEC. 3158. DISPOSITION OF PLUTONIUM IN RUS- ment of various management alternatives any highly enriched uranium purchased SIA. for the international program. If any option under paragraph (1)(A) in order to reduce the (a) NEGOTIATIONS WITH RUSSIAN FEDERA- requires Federal funding or legislation to concentration of U–235 in such uranium to TION.—(1) The Secretary of Energy is encour- implement, the report shall also include rec- below 20 percent. Amounts authorized to be aged to continue to support the Secretary of ommendations for such funding or legisla- appropriated by subsection (m) may not be State in negotiations with the Ministry of tion, as the case may be. used for purposes of blending such uranium. Atomic Energy of the Russian Federation to (b) JOINT PROGRAMS WITH RUSSIA ON PRO- (g) TRANSFER OF HIGHLY ENRICHED URA- finalize the plutonium disposition program LIFERATION RESISTANT NUCLEAR ENERGY NIUM TO RUSSIA.—(1) As part of the program of the Russian Federation (as established TECHNOLOGIES.—The Director of the Office of

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00102 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.030 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6429 Nuclear Energy Science and Technology En- Materials Protection, Control, and Account- SEC. 3163. UTILIZATION OF DEPARTMENT OF EN- ergy shall, in coordination with the Sec- ing programs of the Department and the ERGY NATIONAL LABORATORIES retary, pursue with the Ministry of Atomic Russian Federation Ministry of Atomic En- AND SITES IN SUPPORT OF Energy of the Russian Federation joint pro- ergy. COUNTERTERRORISM AND HOME- LAND SECURITY ACTIVITIES. grams between the United States and the (2) The updated plan shall shift the focus of Russian Federation on the development of the upgrades of the nuclear materials protec- (a) AGENCIES AS JOINT SPONSORS OF LAB- proliferation resistant nuclear energy tech- tion, control, and accounting program of the ORATORIES FOR WORK ON ACTIVITIES.—Each nologies, including advanced fuel cycles. Russian Federation in order to assist the department or agency of the Federal Govern- (c) PARTICIPATION OF INTERNATIONAL TECH- Russian Federation in achieving, as soon as ment, or of a State or local government, that NICAL EXPERTS.—In developing options under practicable but not later than January 1, carries out work on counterterrorism and subsection (a), the Secretary shall, in con- 2012, a sustainable nuclear materials protec- homeland security activities at a Depart- sultation with the Nuclear Regulatory Com- tion, control, and accounting system for the ment of Energy national laboratory may be mission, the Russian Federation, and the nuclear materials of the Russian Federation a joint sponsor, under a multiple agency International Atomic Energy Agency, con- that is supported solely by the Russian Fed- sponsorship arrangement with the Depart- vene and consult with an appropriate group eration. ment, of such laboratory in the performance of international technical experts on the de- (b) PACE OF PROGRAM.—The Secretary shall of such work. velopment of various options for tech- work with the Russian Federation, including (b) AGENCIES AS JOINT SPONSORS OF SITES nologies to provide strengthened security for applicable institutes in Russia, to pursue ac- FOR WORK ON ACTIVITIES.—Each department nuclear materials and safety and security for celeration of the nuclear materials protec- or agency of the Federal Government, or of current nuclear operations, including the im- tion, control, and accounting programs at a State or local government, that carries out plementation of such options. nuclear defense facilities in the Russian Fed- work on counterterrorism and homeland se- (d) ASSISTANCE REGARDING HOSTILE INSID- eration. curity activities at a Department of Energy ERS AND AIRCRAFT IMPACTS.—(1) The Sec- (c) TRANSPARENCY OF PROGRAM.—The Sec- site may be a joint sponsor of such site in retary may, utilizing appropriate expertise retary shall work with the Russian Federa- the performance of such work as if such site of the Department of Energy and the Nuclear tion to identify various alternatives to pro- were a federally funded research and devel- Regulatory Commission, provide assistance vide the United States adequate trans- opment center and such work were per- to nuclear facilities abroad on the interdic- parency in the nuclear materials protection, formed under a multiple agency sponsorship tion of hostile insiders at such facilities in control, and accounting program of the Rus- arrangement with the Department. order to prevent incidents arising from the sian Federation to assure that such program (c) PRIMARY SPONSORSHIP.—The Depart- disablement of the vital systems of such fa- is meeting applicable goals for nuclear mate- ment of Energy shall be the primary sponsor cilities. rials protection, control, and accounting. under a multiple agency sponsorship ar- (2) The Secretary may carry out a joint (d) SENSE OF CONGRESS.—In furtherance of rangement required under subsection (a) or program with the Russian Federation and the activities required under this section, it (b). other countries to address and mitigate con- is the sense of Congress the Secretary (d) WORK.—(1) The Administrator for Nu- cerns on the impact of aircraft with nuclear should— clear Security shall act as the lead agent in facilities in such countries. (1) enhance the partnership with the Rus- coordinating the formation and performance (e) ASSISTANCE TO IAEA IN STRENGTHENING sian Ministry of Atomic Energy in order to of a joint sponsorship agreement between a INTERNATIONAL NUCLEAR SAFETY AND SECU- increase the pace and effectiveness of nu- requesting agency and a Department of En- RITY.—The Secretary may expand and accel- clear materials accounting and security ac- ergy national laboratory or site for work on erate the programs of the Department of En- tivities at facilities in the Russian Federa- counterterrorism and homeland security. ergy to support the International Atomic tion, including serial production enterprises; Energy Agency in strengthening inter- and (2) A request for work may not be sub- national nuclear safety and security. (2) clearly identify the assistance required mitted to a national laboratory or site under (f) AMOUNT FOR ACTIVITIES.—Of the amount by the Russian Federation, the contributions this section unless approved in advance by authorized to be appropriated by section anticipated from the Russian Federation, the Administrator. 3102(2) for the Department of Energy for the and the transparency milestones that can be (3) Any work performed by a national lab- National Nuclear Security Administration used to assess progress in meeting the re- oratory or site under this section shall com- for defense nuclear nonproliferation, up to quirements of this section. ply with the policy on the use of federally $35,000,000 shall be available for carrying out SEC. 3162. COMPREHENSIVE ANNUAL REPORT TO funded research and development centers this section as follows: CONGRESS ON COORDINATION AND under section 35.017(a)(4) of the Federal Ac- (1) For activities under subsections (a) INTEGRATION OF ALL UNITED quisition Regulation. through (d), $20,000,000, of which— STATES NONPROLIFERATION AC- (4) The Administrator shall ensure that the (A) $5,000,000 shall be available for sabotage TIVITIES. work of a national laboratory or site re- Section 1205 of the National Defense Au- protection for nuclear power plants and quested under this section is performed expe- thorization Act for Fiscal Year 2002 (Public other nuclear facilities abroad; and ditiously and to the satisfaction of the head Law 107–107; 115 Stat. 1247) is amended by (B) $10,000,000 shall be available for devel- of the department or agency submitting the adding at the end the following new sub- opment of proliferation resistant nuclear en- request. ergy technologies under subsection (b). section: ‘‘(d) ANNUAL REPORT ON IMPLEMENTATION (e) FUNDING.—(1) Subject to paragraph (2), (2) For activities under subsection (e), a joint sponsor of a Department of Energy $15,000,000. OF PLAN.—(1) Not later than January 31, 2003, and each year thereafter, the President shall national laboratory or site under this sec- SEC. 3160. EXPORT CONTROL PROGRAMS. tion shall provide funds for work of such na- (a) AUTHORITY TO PURSUE OPTIONS FOR submit to Congress a report on the implementation of the plan required by subsection tional laboratory or site, as the case may be, STRENGTHENING EXPORT CONTROL PRO- under this section under the same terms and GRAMS.—The Secretary of Energy may pur- (a) during the preceding year. ‘‘(2) Each report under paragraph (1) shall conditions as apply to the primary sponsor sue in the former Soviet Union and other re- of such national laboratory under section gions of concern, principally in South Asia, include— ‘‘(A) a discussion of progress made during 303(b)(1)(C) of the Federal Property and Ad- the Middle East, and the Far East, options ministrative Services Act of 1949 (41 U.S.C. for accelerating programs that assist coun- the year covered by such report in the matters of the plan required by subsection (a); 253(b)(1)(C)) or of such site to the extent such tries in such regions in improving their do- section applies to such site as a federally mestic export control programs for mate- ‘‘(B) a discussion of consultations with foreign nations, and in particular the Russian funded research and development center by rials, technologies, and expertise relevant to reason of subsection (b). the construction or use of a nuclear or radio- Federation, during such year on joint pro- (2) The total amount of funds provided a logical dispersal device. grams to implement the plan; (b) AMOUNT FOR ACTIVITIES.—Of the ‘‘(C) a discussion of cooperation, coordina- national laboratory or site in a fiscal year amount authorized to be appropriated by tion, and integration during such year in the under this subsection by joint sponsors other section 3102(2) for the Department of Energy implementation of the plan among the var- than the Department of Energy shall not ex- for the National Nuclear Security Adminis- ious departments and agencies of the United ceed an amount equal to 25 percent of the tration for defense nuclear nonproliferation, States Government, as well as private enti- total funds provided such national labora- up to $5,000,000 shall be available for carrying ties that share objectives similar to the ob- tory or site, as the case may be, in such fis- out this section. jectives of the plan; and cal year from all sources. ‘‘(D) any recommendations that the Presi- SEC. 3161. IMPROVEMENTS TO NUCLEAR MATE- Subtitle E—Other Matters RIALS PROTECTION, CONTROL, AND dent considers appropriate regarding modi- ACCOUNTING PROGRAM OF THE fications to law or regulations, or to the ad- SEC. 3171. INDEMNIFICATION OF DEPARTMENT RUSSIAN FEDERATION. ministration or organization of any Federal OF ENERGY CONTRACTORS. (a) REVISED FOCUS FOR PROGRAM.—(1) The department or agency, in order to improve Section 170d.(1)(A) of the Atomic Energy Secretary of Energy shall work coopera- the effectiveness of any programs carried out Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amend- tively with the Russian Federation to update during such year in the implementation of ed by striking ‘‘until August 1, 2002,’’ and in- and improve the Joint Action Plan for the the plan.’’. serting ‘‘until August 1, 2012’’.

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SEC. 3172. WORKER HEALTH AND SAFETY RULES to comply with specific general industry TRACT.—(1) Subsection (b) of section 3136 of FOR DEPARTMENT OF ENERGY FA- standards. the National Defense Authorization Act for CILITIES. ‘‘(B) NO EFFECT ON HEALTH AND SAFETY EN- Fiscal Year 2002 (Public Law 107–107; 115 The Atomic Energy Act of 1954 is amended FORCEMENT.—This subsection does not dimin- Stat. 1368) is amended to read as follows: by inserting after section 234B (42 U.S.C. ish or otherwise affect— ‘‘(b) SUPPORT FOR FISCAL YEARS 2003 2282b) the following: ‘‘(i) the enforcement of any worker health THROUGH 2013.—Subject to the availability of ‘‘SEC. 234C. WORKER HEALTH AND SAFETY and safety regulations under this section appropriations, the Secretary may provide RULES FOR DEPARTMENT OF EN- with respect to the surveillance and mainte- for a contract extension through fiscal year ERGY NUCLEAR FACILITIES. nance or decontamination, decommissioning, 2013 similar to the contract extension re- ‘‘(a) PERSONS SUBJECT TO PENALTY.— or demolition of buildings, facilities, struc- ferred to in subsection (a)(2).’’. ‘‘(1) CIVIL PENALTY.— tures, or improvements; or (2) The amendment made by paragraph (1) ‘‘(A) IN GENERAL.—A person (or any sub- ‘‘(ii) the application of any other law (in- shall take effect on October 1, 2002. contractor or supplier of the person) who has cluding regulations), order, or contractual Subtitle F—Disposition of Weapons-Usable entered into an agreement of indemnifica- obligation. Plutonium at Savannah River, South Caro- tion under section 2210(d) (or any subcon- ‘‘(b) CONTRACT PENALTIES.— lina ‘‘(1) IN GENERAL.—The Secretary shall in- tractor or supplier of the person) that vio- SEC. 3181. FINDINGS. clude in each contract with a contractor of lates (or is the employer of a person that vio- Congress makes the following findings: the Department provisions that provide an lates) Department of Energy Order No. (1) In September 2000, the United States appropriate reduction in the fees or amounts 440.1A (1998), or any rule or regulation relat- and the Russian Federation signed a Pluto- paid to the contractor under the contract in ing to industrial or construction health and nium Management and Disposition Agree- the event of a violation by the contractor or safety promulgated by the Secretary of En- ment by which each agreed to dispose of 34 contractor employee of any regulation or ergy (referred to in this section as the ‘‘Sec- metric tons of weapons-grade plutonium. order relating to industrial or construction retary’’) after public notice and opportunity (2) The agreement with Russia is a signifi- health and safety. for comment under section 553 of title 5, cant step toward safeguarding nuclear mate- ‘‘(2) CONTENTS.—The provisions shall speci- United States Code (commonly known as the rials and preventing their diversion to rogue fy various degrees of violations and the ‘Administrative Procedure Act’), shall be states and terrorists. amount of the reduction attributable to each subject to a civil penalty of not more than (3) The Department of Energy plans to dis- degree of violation. $100,000 for each such violation. pose of 34 metric tons of weapons-grade plu- ‘‘(c) POWERS AND LIMITATIONS.—The powers ‘‘(B) CONTINUING VIOLATIONS.—If any viola- and limitations applicable to the assessment tonium in the United States before the end tion under this subsection is a continuing of 2019 by converting the plutonium to a violation, each day of the violation shall of civil penalties under section 234A, except for subsection (d) of that section, shall apply mixed-oxide fuel to be used in commercial constitute a separate violation for the pur- nuclear power reactors. pose of computing the civil penalty under to the assessment of civil penalties under this section. (4) The Department has formulated a plan subparagraph (A). for implementing the agreement with Russia ‘‘(d) TOTAL AMOUNT OF PENALTIES.—In the ‘‘(2) REGULATIONS.— case of an entity described in subsection (d) through construction of a mixed-oxide fuel ‘‘(A) IN GENERAL.—Not later than 270 days fabrication facility, the so-called MOX facil- after the date of enactment of this section, of section 234A, the total amount of civil penalties under subsection (a) or under sub- ity, and a pit disassembly and conversion fa- the Secretary shall promulgate regulations cility at the Savannah River Site, Aiken, for industrial and construction health and section (a) of section 234B in a fiscal year may not exceed the total amount of fees paid South Carolina. safety that incorporate the provisions and (5) The United States and the State of requirements contained in Department of by the Department of Energy to that entity in that fiscal year.’’. South Carolina have a compelling interest in Energy Order No. 440.1A (1998). the safe, proper, and efficient operation of SEC. 3173. ONE-YEAR EXTENSION OF AUTHORITY ‘‘(B) EFFECTIVE DATE.—The regulations the plutonium disposition facilities at the promulgated under subparagraph (A) shall OF DEPARTMENT OF ENERGY TO PAY VOLUNTARY SEPARATION IN- Savannah River Site. The MOX facility will take effect on the date that is 1 year after CENTIVE PAYMENTS. also be economically beneficial to the State the promulgation date of the regulations. (a) IN GENERAL.—Section 3161(a) of the Na- of South Carolina, and that economic benefit ‘‘(3) VARIANCES OR EXEMPTIONS.— tional Defense Authorization Act for Fiscal will not be fully realized unless the MOX fa- ‘‘(A) IN GENERAL.—The Secretary may pro- Year 2000 (Public Law 106–65; 5 U.S.C. 5597 cility is built. vide in the regulations promulgated under note) is amended by striking ‘‘January 1, (6) The State of South Carolina desires to paragraph (2) a procedure for granting 2004’’ and inserting ‘‘January 1, 2005’’. ensure that all plutonium transferred to the variances or exemptions to the extent nec- (b) CONSTRUCTION.—The amendment made State of South Carolina is stored safely; that essary to avoid serious impairment of the by subsection (a) may be superseded by an- the full benefits of the MOX facility are real- national security of the United States. other provision of law that takes effect after ized as soon as possible; and, specifically, ‘‘(B) DETERMINATION.—In determining the date of the enactment of this Act, and that all defense plutonium or defense pluto- whether to provide a variance or exemption before January 1, 2004, establishing a uni- nium materials transferred to the Savannah under subparagraph (A), the Secretary of En- form system for providing voluntary separa- River Site either be processed or be removed ergy shall assess— tion incentives (including a system for re- expeditiously. ‘‘(i) the impact on national security of not quiring approval of plans by the Office of SEC. 3182. DISPOSITION OF WEAPONS-USABLE providing a variance or exemption; and Management and Budget) for employees of PLUTONIUM AT SAVANNAH RIVER ‘‘(ii) the benefits or detriments to worker the Federal Government. SITE. health and safety of providing a variance or SEC. 3174. SUPPORT FOR PUBLIC EDUCATION IN (a) PLAN FOR CONSTRUCTION AND OPERATION exemption. THE VICINITY OF LOS ALAMOS NA- OF MOX FACILITY.—(1) Not later than Feb- ‘‘(C) PROCEDURE.—Before granting a vari- TIONAL LABORATORY, NEW MEXICO. ruary 1, 2003, the Secretary of Energy shall ance or exemption, the Secretary of Energy (a) SUPPORT FOR FISCAL YEAR 2003.—From submit to Congress a plan for the construc- shall— amounts authorized to be appropriated to tion and operation of the MOX facility at the ‘‘(i) notify affected employees; the Secretary of Energy by this title, Savannah River Site, Aiken, South Carolina. ‘‘(ii) provide an opportunity for a hearing $6,900,000 shall be available for payment by (2) The plan under paragraph (1) shall on the record; and the Secretary for fiscal year 2003 to the Los include— ‘‘(iii) notify Congress of any determination Alamos National Laboratory Foundation, a (A) a schedule for construction and oper- to grant a variance at least 60 days before not-for-profit foundation chartered in ac- ations so as to achieve, as of January 1, 2009, the proposed effective date of the variance or cordance with section 3167(a) of the National and thereafter, the MOX production objec- exemption. Defense Authorization Act for Fiscal Year tive, and to produce 1 metric ton of mixed ‘‘(4) APPLICABILITY.—This subsection does 1998 (Public Law 105–85; 111 Stat. 2052). oxide fuel by December 31, 2009; and not apply to any facility that is a component (b) USE OF FUNDS.—The foundation referred (B) a schedule of operations of the MOX fa- of, or any activity conducted under, the to in subsection (a) shall— cility designed so that 34 metric tons of de- Naval Nuclear Propulsion Program. (1) utilize funds provided under this section fense plutonium and defense plutonium ma- ‘‘(5) ENFORCEMENT GUIDANCE ON STRUC- as a contribution to the endowment fund for terials at the Savannah River Site will be TURES TO BE DISPOSED OF.— the foundation; and processed into mixed oxide fuel by January ‘‘(A) IN GENERAL.—In enforcing the regula- (2) use the income generated from invest- 1, 2019. tions under paragraph (2), the Secretary of ments in the endowment fund that are at- (3)(A) Not later than February 15 each Energy shall, on a case-by-case basis, evalu- tributable to the payment made under this year, beginning in 2004 and continuing for as ate whether a building, facility, structure, or section to fund programs to support the edu- long as the MOX facility is in use, the Sec- improvement of the Department of Energy cational needs of children in the public retary shall submit to Congress a report on that is permanently closed and that is ex- schools in the vicinity of Los Alamos Na- the implementation of the plan required by pected to be demolished, or title to which is tional Laboratory, New Mexico. paragraph (1). expected to be transferred to another entity (c) REPEAL OF SUPERSEDED AUTHORITY AND (B) Each report under subparagraph (A) for for reuse, should undergo major retrofitting MODIFICATION OF AUTHORITY TO EXTEND CON- years before 2010 shall include—

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00104 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.030 pfrm12 PsN: S08PT1 July 8, 2002 CONGRESSIONAL RECORD — SENATE S6431 (i) an assessment of compliance with the analysis that may be required under the Na- nah River Site after April 15, 2002, but not schedules included with the plan under para- tional Environmental Policy Act of 1969 in processed by the MOX facility. graph (2); and order to select among the options set forth (f) REMOVAL OF MIXED-OXIDE FUEL UPON (ii) a certification by the Secretary wheth- in the report. COMPLETION OF OPERATIONS OF MOX FACIL- er or not the MOX production objective can (c) CONTINGENT REQUIREMENT FOR REMOVAL ITY.—If, one year after the date on which op- be met by January 2009. OF PLUTONIUM AND MATERIALS FROM SAVAN- eration of the MOX facility permanently (C) Each report under subparagraph (A) for NAH RIVER SITE.—If the MOX production ob- ceases any mixed-oxide fuel remains at the years after 2009 shall— jective is not achieved as of January 1, 2009, Savannah River Site, the Secretary shall (i) address whether the MOX production the Secretary shall, consistent with the Na- submit to Congress— objective has been met; and tional Environmental Policy Act of 1969 and (1) a report on when such fuel will be trans- (ii) assess progress toward meeting the ob- other applicable laws, remove from the State ferred for use in commercial nuclear reac- ligations of the United States under the Plu- of South Carolina, for storage or disposal tors; or tonium Management and Disposition Agree- elsewhere— (2) a plan for removing such fuel from the ment. (1) not later than January 1, 2011, not less State of South Carolina. (D) For years after 2017, each report under than 1 metric ton of defense plutonium or de- (g) DEFINITIONS.—In this section: subparagraph (A) shall also include an as- fense plutonium materials; and (1) MOX PRODUCTION OBJECTIVE.—The term sessment of compliance with the MOX pro- (2) not later than January 1, 2017, an ‘‘MOX production objective’’ means produc- duction objective and, if not in compliance, amount of defense plutonium or defense plu- tion at the MOX facility of mixed-oxide fuel the plan of the Secretary for achieving one tonium materials equal to the amount of de- from defense plutonium and defense pluto- of the following: fense plutonium or defense plutonium mate- nium materials at an average rate equiva- (i) Compliance with such objective. rials transferred to the Savannah River Site lent to not less than one metric ton of (ii) Removal of all remaining defense plu- between April 15, 2002 and January 1, 2017, mixed-oxide fuel per year. The average rate tonium and defense plutonium materials but not processed by the MOX facility. shall be determined by measuring production from the State of South Carolina. (d) ECONOMIC AND IMPACT ASSISTANCE.—(1) at the MOX facility from the date the facil- (b) CORRECTIVE ACTIONS.—(1) If a report If the MOX production objective is not ity is declared operational to the Nuclear under subsection (a)(3) indicates that con- achieved as of January 1, 2011, the Secretary Regulatory Commission through the date of struction or operation of the MOX facility is shall pay to the State of South Carolina each assessment. behind the applicable schedule under sub- year beginning on or after that date through (2) MOX FACILITY.—The term ‘‘MOX facil- section (a)(2) by 12 months or more, the Sec- 2016 for economic and impact assistance an ity’’ means the mixed-oxide fuel fabrication retary shall submit to Congress, not later amount equal to $1,000,000 per day until the than August 15 of the year in which such re- facility at the Savannah River Site, Aiken, later of— South Carolina. port is submitted, a plan for corrective ac- (A) the passage of 100 days in such year; (3) DEFENSE PLUTONIUM; DEFENSE PLUTO- tions to be implemented by the Secretary to (B) the MOX production objective is NIUM MATERIALS.—The terms ‘‘defense-pluto- ensure that the MOX facility project is capa- achieved in such year; or ble of meeting the MOX production objective nium’’ and ‘‘defense plutonium materials’’ (C) the Secretary has removed from the mean weapons-usable plutonium. by January 1, 2009. State of South Carolina in such year at least (2) If a plan is submitted under paragraph 1 metric ton of defense plutonium or defense SEC. 3183. STUDY OF FACILITIES FOR STORAGE OF PLUTONIUM AND PLUTONIUM (1) in any year after 2008, the plan shall in- plutonium materials. clude corrective actions to be implemented MATERIALS AT SAVANNAH RIVER (2)(A) If the MOX production objective is SITE. by the Secretary to ensure that the MOX not achieved as of January 1, 2017, the Sec- (a) STUDY.—The Defense Nuclear Facilities production objective is met. retary shall pay to the State of South Caro- Safety Board shall conduct a study of the (3) Any plan for corrective actions under lina each year beginning on or after that adequacy of K-Area Materials Storage facil- paragraph (1) or (2) shall include established date through 2024 for economic and impact milestones under such plan for achieving ity (KAMS), and related support facilities assistance an amount equal to $1,000,000 per compliance with the MOX production objec- such as Building 235–F, at the Savannah day until the later of— tive. River Site, Aiken, South Carolina, for the (i) the passage of 100 days in such year; (4) If, before January 1, 2009, the Secretary storage of defense plutonium and defense (ii) the MOX production objective is determines that there is a substantial and plutonium materials in connection with the achieved in such year; or material risk that the MOX production ob- disposition program provided in section 3182 (iii) the Secretary has removed from the jective will not be achieved by 2009 because and in connection with the amended Record State of South Carolina an amount of de- of a failure to achieve milestones set forth in of Decision of the Department of Energy for fense plutonium or defense plutonium mate- the most recent corrective action plan under fissile materials disposition. rials equal to the amount of defense pluto- this subsection, the Secretary shall suspend (b) REPORT.—Not later than one year after nium or defense plutonium materials trans- further transfers of defense plutonium and the date of enactment of this Act, the De- ferred to the Savannah River Site between defense plutonium materials to be processed fense Nuclear Facilities Safety Board shall April 15, 2002 and January 1, 2017, but not by the MOX facility until such risk is ad- submit to Congress and the Secretary of En- dressed and the Secretary certifies that the processed by the MOX facility. (B) Nothing in this paragraph may be con- ergy a report on the study conducted under MOX production objective can be met by subsection (a). 2009. strued to terminate, supersede, or otherwise affect any other requirements of this sec- (c) REPORT ELEMENTS.—The report under (5) If, after January 1, 2009, the Secretary subsection (b) shall— determines that the MOX production objection. (3) The Secretary shall make payments, if (1) address— tive has not been achieved because of a fail- (A) the suitability of KAMS and related ure to achieve milestones set forth in the any, under this subsection, from amounts authorized to be appropriated to the Depart- support facilities for monitoring and observ- most recent corrective action plan under ing any defense plutonium or defense pluto- this subsection, the Secretary shall suspend ment of Energy. (4) If the State of South Carolina obtains nium materials stored in KAMS; further transfers of defense plutonium and (B) the adequacy of the provisions made by defense plutonium materials to be processed an injunction that prohibits the Department the Department for remote monitoring of by the MOX facility until the Secretary cer- from taking any action necessary for the De- such defense plutonium and defense pluto- tifies that the MOX production objective can partment to meet any deadline specified by nium materials by way of sensors and for be met by 2009. this subsection, that deadline shall be ex- (6)(A) Upon making a determination under tended for a period of time equal to the pe- handling of retrieval of such defense pluto- paragraph (4) or (5), the Secretary shall sub- riod of time during which the injunction is nium and defense plutonium materials; and mit to Congress a report on the options for in effect. (C) the adequacy of KAMS should such de- removing from the State of South Carolina (e) FAILURE TO COMPLETE PLANNED DIS- fense plutonium and defense plutonium ma- an amount of defense plutonium or defense POSITION PROGRAM.—If on July 1 each year terials continue to be stored at KAMS after plutonium materials equal to the amount of beginning in 2020 and continuing for as long 2019; and defense plutonium or defense plutonium ma- as the MOX facility is in use, less than 34 (2) include such recommendations as the terials transferred to the State of South metric tons of defense plutonium or defense Defense Nuclear Facilities Safety Board con- Carolina after April 15, 2002. plutonium materials have been processed by siders appropriate to enhance the safety, re- (B) Each report under subparagraph (A) the MOX facility, the Secretary shall submit liability, and functionality of KAMS. shall include an analysis of each option set to Congress a plan for— (d) REPORTS ON ACTIONS ON RECOMMENDA- forth in the report, including the cost and (1) completing the processing of 34 metric TIONS.—Not later than 6 months after the schedule for implementation of such option, tons of defense plutonium and defense pluto- date on which the report under subsection and any requirements under the National nium material by the MOX facility; or (b) is submitted to Congress, and every year Environmental Policy Act of 1969 (42 U.S.C. (2) removing from the State of South Caro- thereafter, the Secretary and the Board shall 4321 et seq.) relating to consideration or se- lina an amount of defense plutonium or de- each submit to Congress a report on the ac- lection of such option. fense plutonium materials equal to the tions taken by the Secretary in response to (C) Upon submittal of a report under para- amount of defense plutonium or defense plu- the recommendations, if any, included in the graph (A), the Secretary shall commence any tonium materials transferred to the Savan- report.

VerDate 11-MAY-2000 04:47 Jul 09, 2002 Jkt 099060 PO 00000 Frm 00105 Fmt 4624 Sfmt 0634 E:\CR\FM\A08JY6.030 pfrm12 PsN: S08PT1 S6432 CONGRESSIONAL RECORD — SENATE July 8, 2002

TITLE XXXII—DEFENSE NUCLEAR ing in the Franklin County Municipal Court S. RES. 264 FACILITIES SAFETY BOARD in the State of Ohio, testimony has been re- Whereas on September 11, 2001, the people SEC. 3201. AUTHORIZATION. quested from Michael Dawson, an employee of the United States were subject to the There are authorized to be appropriated for in the office of Senator Mike DeWine; worst terrorist attack in American history; fiscal year 2003, $19,494,000 for the operation Whereas, pursuant to sections 703(a) and Whereas in October 2001, the Pentagon’s of the Defense Nuclear Facilities Safety 704(a)(2) of the Ethics in Government Act of Technical Support Working Group, which is Board under chapter 21 of the Atomic Energy 1978, 2 U.S.C. §§ 288b(a) and 288c(a)(2), the responsible for seeking new technologies to Act of 1954 (42 U.S.C. 2286 et seq.). Senate may direct its counsel to represent assist the military, sent an urgent plea, employees of the Senate with respect to any SEC. 3202. AUTHORIZATION OF APPROPRIATIONS seeking ideas on how to fight terrorism; FOR THE FORMERLY USED SITES RE- subpoena, order, or request for testimony re- Whereas in just 2 months, over 12,500 ideas MEDIAL ACTION PROGRAM OF THE lating to their official responsibilities; were submitted to the Technical Support CORPS OF ENGINEERS. Whereas, by the privileges of the Senate of Working Group, most of them from small There is hereby authorized to be appro- the United States and Rule XI of the Stand- businesses; priated for fiscal year 2003 for the Depart- ing Rules of the Senate, no evidence under Whereas small businesses remain the most ment of the Army, $140,000,000 for the for- the control or in the possession of the Senate innovative sector of the United States econ- merly used sites remedial action program of may, by the judicial or administrative proc- omy, accounting for the vast majority of the Corps of Engineers. ess, be taken from such control or possession new product ideas and technological innova- f but by permission of the Senate; tions; and Whereas, when it appears that evidence Whereas despite their achievements, small AUTHORIZING TESTIMONY, DOCU- under the control or in the possession of the businesses often have difficulty marketing MENT PRODUCTION, AND LEGAL Senate may promote the administration of and supplying goods and services to Federal, REPRESENTATION justice, the Senate will take such action as State, and local governments: Now, there- will promote the ends of justice consistent fore, be it Mr. REID. Mr. President, I ask unan- with the privileges of the Senate: Now, imous consent that the Senate proceed therefore, be it Resolved, That it is the sense of the Senate that— to the consideration of S. Res. 299 sub- Resolved, That Michael Dawson and any mitted earlier today by the majority other employee of Senator DeWine’s office (1) small business participation is vital to from whom testimony may be required are the defense of the United States and should and the Republican leaders. play an active role in assisting the United The PRESIDING OFFICER. The authorized to testify and produce documents in the cases of City of Columbus v. Jac- States military, Federal intelligence and law clerk will report the resolution by enforcement agencies, and State and local title. queline Downing, et al., and City of Colum- bus v. Vincent Ramos, except concerning police forces to combat terrorism through The assistant legislative clerk read matters for which a privilege should be as- the design and development of innovative as follows: serted. products; and (2) Federal, State, and local governments A resolution (S. Res. 299) to authorize tes- SEC. 2. The Senate Legal Counsel is author- timony, document production and legal rep- ized to represent Michael Dawson and any should aggressively seek out and purchase resentation in City of Columbus versus Jac- other employee of Senator DeWine’s office in innovative technologies and services from, queline Downing, et al. and City of Columbus connection with the testimony and docu- and promote research opportunities for, versus Vincent Ramos. ment production authorized in section one of American small businesses to help in homeland defense and the fight against terrorism. There being no objection, the Senate this resolution. proceeded to consider the resolution. f f Mr. DASCHLE. Mr. President, this resolution concerns requests for testi- EXPRESSING SENSE OF SENATE mony in criminal actions in Franklin THAT SMALL BUSINESS PARTICI- ORDERS FOR TUESDAY, JULY 9, County Municipal Court in Ohio. In the PATION IS VITAL TO DEFENSE 2002 cases of City of Columbus v. Jacqueline OF OUR NATION Mr. REID. Mr. President, I ask unan- Downing, et al. and City of Columbus Mr. REID. Mr. President, I ask unanimous consent that when the Senate v. Vincent Ramos, the city prosecutor imous consent that the Small Business completes its business today, it ad- has charged the defendants with crimi- and Entrepreneurship Committee be journ until 9:30 a.m., Tuesday, July 9; nal trespass for refusing to leave Sen- discharged from further consideration that following the prayer and the ator DEWINE’s Columbus office after of S. Res. 264 and the Senate now pro- pledge, the Journal of Proceedings be the building was closed for the night, ceed to its consideration. approved to date, the morning hour be and with resisting arrest. Pursuant to The PRESIDING OFFICER. Without deemed expired, the time for the two subpoenas issued on behalf of the city objection, it is so ordered. The clerk leaders be reserved for their use later prosecutor, this resolution authorizes will report the resolution by title. in the day, and there be a period for an employee in Senator DEWINE’S of- The assistant legislative clerk read morning business until 10:15 a.m., with fice who witnessed the events giving as follows: Senators permitted to speak for up to rise to the trespass charges, and any A resolution (S. Res. 264) expressing the 10 minutes each, with the first half of other employee in the Senator’s office sense of the Senate that small business par- the time under the control of the Re- from whom testimony may be required, ticipation is vital to the defense of our Na- publican leader or his designee, and the to testify and produce documents at tion, and that Federal, State, and local gov- second half of the time under the con- trial in these cases, with representa- ernments should aggressively seek out and trol of the Republican leader or his des- tion by the Senate legal counsel. purchase innovative technologies and serv- ignee; that at 10:15 a.m., the Senate re- Mr. REID. I ask unanimous consent ices from American small businesses to help in homeland defense and the fight against sume consideration of the accounting that the resolution and preamble be reform bill. agreed to en bloc, the motion to recon- terrorism. sider be laid upon the table, and that a There being no objection, the Senate The PRESIDING OFFICER. Without statement by the majority leader be proceeded to consider the resolution. objection, it is so ordered. printed in the RECORD, with no inter- Mr. REID. I ask unanimous consent vening action or debate. that the resolution and preamble be f The PRESIDING OFFICER. Without agreed to en bloc; the motion to recon- objection, it is so ordered. sider be laid upon the table; that any ADJOURNMENT UNTIL 9:30 A.M. The resolution (S. Res. 299) was statements relating thereto be printed TOMORROW agreed to. in the RECORD, with no intervening ac- Mr. REID. Mr. President, if there is The preamble was agreed to. tion or debate. The resolution (S. Res. 299), with its The PRESIDING OFFICER. Without no further business to come before the preamble, reads as follows: objection, it is so ordered. Senate, I ask unanimous consent that the Senate stand in adjournment under S. RES. 299 The resolution (S. Res. 299) was the previous order. Whereas, in the cases of City of Columbus agreed to. v. Jacqueline Downing, et al., Nos. 2002 CR B The preamble was agreed to. There being no objection, the Senate, 01082–25, 010835–37 and City of Columbus v. The resolution (S. Res. 299), with its at 6:38 p.m., adjourned until Tuesday, Vincent Ramos, No. 2002 CR B 010835–37 pend- preamble, reads as follows: July 9, 2002, at 9:30 a.m.

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