E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 109 CONGRESS, FIRSTSESSION

Vol. 151 WASHINGTON, MONDAY, JANUARY 24, 2005 No. 4 House of Representatives The House was not in session today. Its next meeting will be held on Tuesday, January 25, 2005, at 2 p.m. Senate MONDAY, JANUARY 24, 2005

The Senate met at 2:01 p.m. and was APPOINTMENT OF ACTING Senator DORGAN will control the re- called to order by the Honorable PRESIDENT PRO TEMPORE maining 1 hour. We do not have a re- LAMAR ALEXANDER, a Senator from the The PRESIDING OFFICER. The quest for a rollcall vote on the nomina- State of Tennessee. clerk will please read a communication tion. Therefore, we will proceed to a to the Senate from the President pro voice vote at the expiration of that PRAYER tempore (Mr. STEVENS). time. Consequently, we will not have The Chaplain, Dr. Barry C. Black, of- The assistant legislative clerk read any rollcall votes today. fered the following prayer: the following letter: I do want to take this opportunity to Let us pray. U.S. SENATE, remind my colleagues that we will Lord, You have been our dwelling PRESIDENT PRO TEMPORE, begin debate on the nomination of place in all generations. You laid the Washington, DC, January 24, 2005. Condoleezza Rice during tomorrow’s Earth’s foundation on the seas and To the Senate: session. The order from last week pro- built it on the ocean depths. Each day Under the provisions of rule I, paragraph 3, vides for debate on Tuesday with clos- of the Standing Rules of the Senate, I hereby we receive the showers of Your bless- ing remarks on Wednesday and a vote appoint the Honorable LAMAR ALEXANDER, a on that nomination on Wednesday ings. Senator from the State of Tennessee, to per- Thank You for listening to our pray- form the duties of the Chair. morning. ers and for keeping us safe. Thank You TED STEVENS, There are several other Cabinet-level for giving us hope, even when life President pro tempore. nominations that may be ready for seems covered by shadows. From our Mr. ALEXANDER thereupon assumed floor action this week, including the earliest moments, we have been blessed the Chair as Acting President pro tem- nominations of the Secretary of En- by Your marvelous deeds. So we cele- pore. ergy, the Secretary of Health and brate Your goodness. Human Services, and the Attorney f Continue to sustain our legislators. General. I will be talking with the Give them wisdom and courage to do RECOGNITION OF THE MAJORITY Democratic leader about the full Sen- their duty. Keep their hands and hearts LEADER ate consideration of those Cabinet posi- pure. Teach them to do the right thing, The PRESIDING OFFICER (Mr. ROB- tions as they become available. to be honest and fair. Keep them hum- ERTS). The distinguished majority lead- f ble and help them to trust You com- er is recognized. pletely now and always. RELATING TO THE DEATH OF f Lord, continue to protect our Na- HOWARD S. LIEBENGOOD tion’s military. We pray in Your Holy SCHEDULE Mr. FRIST. Mr. President, I am now Name. Amen. Mr. FRIST. Mr. President, this after- turning to a resolution for a very close noon, we will be in a period for morn- friend, and then I will take a few mo- f ing business so Senators may introduce ments to comment on this resolution, legislation and make statements. Fol- really the man behind this resolution. PLEDGE OF ALLEGIANCE lowing that 1 hour period, the Senate I send a resolution to the desk and The Honorable LAMAR ALEXANDER led will proceed to executive session for ask for its immediate consideration. the Pledge of Allegiance, as follows: the consideration of the nomination of The PRESIDING OFFICER. The I pledge allegiance to the Flag of the Carlos Gutierrez to be Secretary of clerk will report the resolution by United States of America, and to the Repub- Commerce. Chairman STEVENS will be title. lic for which it stands, one nation under God, here to manage the hour of debate on The assistant legislative clerk read indivisible, with liberty and justice for all. this side of the aisle, and I understand as follows:

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

S107

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Howard in striped trousers and a cut-away The PRESIDING OFFICER. Without Howard was born on December 29, coat standing on a platform next to the objection, it is so ordered. 1942, in South Bend, IN. Franklin Dela- emergency phone sweating although the The resolution (S. Res. 7) was agreed no Roosevelt was President, stamps temperature was below freezing. I said: to. ‘‘Howard, I see you’re sweating. Are you cost 3 cents, and total Federal spending OK?’’ Howard replied: ‘‘I forgot the key to The preamble was agreed to. was a mere $35 billion. the emergency phone.’’ The resolution, with its preamble, Howard graduated from Plymouth Senator Baker asked him later: reads as follows: High in 1960 and earned his bachelors What would you have done if that phone S. RES. 7 degree in political science at Kansas had rung? Whereas Howard S. Liebengood served as a State University. From there he went captain in the United States Army Military to Vanderbilt University Law School And Howard replied: Police Corps in Vietnam from 1968 to 1970, re- where he met a young man who would I would have pulled that sucker out by the ceiving the Bronze Star and the Army Com- become his closest and lifelong friend roots. mendation Medal for his exemplary service; and future U.S. Senator, Fred Thomp- That is Howard Liebengood, and it is Whereas Howard S. Liebengood began his son. Howard once described the two of the Howard Liebengood we have all service to the Senate in 1973 as minority been pleased to know. He treated ev- counsel to the Senate Watergate Committee; them as misfits among the well-heeled Whereas Howard S. Liebengood served as southern scholars and Ivy League eryone, from Senators to interns, with an aide to the Senate Church Committee in stars. But knowing them both, I sus- a graciousness and genuine regard. If a 1975, as the minority staff director of the pect it was just Howard’s char- constituent had a difficult request or Senate Select Committee on Intelligence in acteristic midwestern modesty. an unusual request, Howard would say: 1976, and as legislative counsel to Senate Ma- After earning his law degree from Give them a chance. That is an idea jority Leader Howard H. Baker, Jr., in 1980; Vanderbilt, Howard served as an Army that just may be worth considering. Whereas Howard S. Liebengood served as captain in the Vietnam war. His brav- When Senator HATCH injured his Sergeant at Arms of the Senate from 1981 to Achilles’ tendon, Howard drove ORRIN 1983; ery and valor earned him the Bronze Whereas Howard S. Liebengood served as Star and the Army Commendation to the Senate every day. While he was chief of staff to Senator Fred Thompson Medal. my chief of staff, Howard Liebengood from 2001 to 2003, and as chief of staff to Sen- Upon his return from Vietnam in regularly invited young staffers on ate Majority Leader William H. Frist, M.D., 1970, Howard applied for and won the summer weekends to travel with him from 2003 until his death in January, 2005; competition to be assistant general to Baltimore for a day of crabs and Whereas Howard S. Liebengood was a car- manager and play-by-play announcer baseball. ing and devoted husband, father, and col- for the Kansas City Royals AAA farm He was just that kind of person—al- league who served with the utmost humility club. But it was not to be. A young wife ways extending himself, always mak- and distinction and was admired and re- ing others comfortable around him, al- spected by all as a teacher, adviser, and and the prospect of a future family led friend; and him to the offices of Manier, White in ways making the personal connection, Whereas Howard S. Liebengood inspired Nashville, TN, where he practiced especially focusing on the young people others through his personal leadership, gen- criminal and entertainment law. in the office. He wanted to share with erosity, and great love for the United States: Then, just as he was to become part- them the excitement and honor of Now, therefore, be it ner, he got a call. Fred was minority working in Government. He always let Resolved, That— counsel to the newly formed Senate them know, interns and staff alike, (1) the Senate has heard with profound sor- Watergate Committee, and he wanted that their jobs mattered, that their row and deep regret the announcement of the death of Howard S. Liebengood; and Howard at his side. It was 1973, the jobs had a purpose, that they were (2) the Secretary of the Senate commu- height of Watergate. Senator Howard serving their fellow citizens and ad- nicate these resolutions to the House of Rep- Baker of Tennessee was vice chair of vancing the cause of democracy. resentatives and transmit an enrolled copy the committee. It was an offer too good Howard also reached across the aisle. of these resolutions to the family of Howard to refuse. He was known as the peacemaker for S. Liebengood. Howard soon found himself in the his ability to bring opposing sides to- Mr. FRIST. Mr. President, Howard center of the Watergate whirlwind, gether. Indeed, one of his great regrets Liebengood loved the Senate. He loved interviewing witnesses and ultimately was what he saw to be the growing par- the purpose of this institution; he coauthoring the Baker report. tisanship in politics. loved its tradition; and, above all, he It was a heady experience for the He missed the days when Members loved its people. The Senate was his ex- young lawyer and launched him on a could set aside their party labels and tended family, and we all are going to 30-year career in politics. And yet share a 6 o’clock cocktail or a Friday miss him very much. somehow, despite this long and inti- night dinner. When he was legislative Howard Schuler Liebengood passed mate exposure to Washington politics, counsel for Senator Baker, what is now away on Thursday, January 13, at his Howard never lost his optimism. He just down the hall my conference room home in Vienna, VA. He was just 2 never became cynical. He always and the leader’s office, it was called the weeks shy of his retirement. He had looked for the good in any situation, ‘‘back room.’’ It featured not a con- planned to travel and cook and devote and he always kept his good humor. ference table but a sofa, a coffee table, himself to his wife Dee and their three And throughout, he also had the two wingback chairs, and over at the grown children, Howie, John, and mentorship and friendship of Senator end a wet bar. Anne. Howard Baker, his first boss in politics. Howard would host visits that began We talked in detail at breakfast During the course of Watergate, Sen- late in the afternoon and could last about a month ago, in late December, ator Baker and Howard became close well into the evening. The regulars in- about his excitement of being able to friends. As minority leader, Senator cluded Mac Mathias, Barry Gold- retire and spend time with the family. Baker hired Howard to be his legisla- water—they tell me, two fingers of He also told me he planned on going tive assistant, and then as majority bourbon, no ice—PETE DOMENICI, and to the track. One of his closest friends leader he elevated Howard to Sergeant Joy Baker, who would often bring and a real friend of this institution, at Arms. Howard would often stay with along Elizabeth Taylor Warner. Marty Gold, said Howard loved any- Senator Baker when the Senator was Two curious facts about the jovial thing that ran around the track, home in Scott County in Huntsville, and mild-mannered Presbyterian. The whether it was cars or dogs or people. TN. first, Howard kept a dozen bottles of

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Mr. President, I ask unan- contributions on behalf of the members The story goes that one time in Man- imous consent that the full time in of our armed services. hattan, NY, of all places in the apart- morning business for the majority and This bill will also enhance our efforts ment of Fidel Castro’s mistress, in the minority be given. The standing order to secure our Nation against biological course of casual conversation, Mike was that we would go to the Gutierrez threats and gives law enforcement the Madigan said something that upset Ms. nomination at 3, but I ask that that tools they need to better defend us at Marita, something she took as a chal- time be extended. home, both by more quickly providing lenge to her own personal integrity. The PRESIDING OFFICER. Is there cutting edge technologies and by en- She pulled a Derringer from her bras- objection? hancing laws to protect our citizens. I siere and threatened to shoot them Without objection, it is so ordered. appreciate Senator SESSIONS’ leader- both. It was a tense moment. Mike f ship in the area of protecting our mass tried to dive under the couch over transit system against terrorist at- INTRODUCTION OF REPUBLICAN tacks. Included in this leadership pro- against the wall. Fortunately, Mike LEADERSHIP AMENDMENTS and Howard got out of there unharmed posal is the Railroad Carriers and Mass and with a great story to tell. Mr. FRIST. Mr. President, today we Transportation Act, a bill he authored We all greatly admired Howard. honor the tradition of defining our par- last Congress and also incorporated When I became majority leader, I ty’s agenda for this Congress. I take into the Tools to Fight Terrorism Act called him on a very late cold Decem- this duty seriously. Because I take our introduced by Senate leadership. ber night and asked him to be my chief times seriously. Our Nation’s security does not rest of staff, and to my great, good, wonder- We live during an extraordinary mo- on our military might alone. A growing ful fortune, he said yes, and he brought ment not only in the history of Amer- economy, educational opportunities, incredible insight and judgment. ica, but in the history of the world. and access to affordable health care are Through his personal leadership, integ- And it is my goal—and the goal of my all essential to keep our country rity, and generosity, he inspired us all. caucus—to look to the future and seize strong and our citizens secure. We should begin by examining the He valued character. He valued hon- the opportunities that such times offer. Federal Tax Code. Our tax system esty. He valued grace. Above all, he Social Security has been one of the should raise revenue in a simple, effi- valued faith. Howard was loved and re- great triumphs in the history of our government. It has lifted millions of cient, fair and predictable manner. spected by individuals across the Cap- Unfortunately, this is far from to- itol complex from Members to door- seniors from poverty into dignity and provided an essential safety net for dis- day’s reality. keepers to photographers to the hun- Consider the facts: Everyday Ameri- abled citizens. dreds of Senate staffers, old and young, cans spend 23 percent more time filling But soon our Social Security system Democrat and Republican. Howard was out tax forms today than 8 years ago. will be unable to sustain itself. A pro- a remarkable person who led a remark- In that time, the total number of pages gram created for security will itself be- able life. of Federal tax rules have grown by al- Howard used to sign off his e-mails come insecure. most half. And one leading tax prepara- with the words ‘‘all good wishes.’’ I Social Security works well for those tion firm is making 150 percent more know I speak for the entire Senate at or near retirement. And, for these money. family when I say our hearts are full of men and women, Social Security must We look forward to reviewing the good wishes for Howard and his family. remain the same and provide the same findings of the President’s Advisory We are blessed to have had him in our benefits. Panel on Federal Tax Reform. We will lives, and we will miss him dearly. But for future retirees, the future is take action. We will simplify our laws, Mr. REID. Mr. President, before the less certain. That is, of course, if we keep our commitment to a progressive distinguished Republican leader leaves fail to act. Then we will know the out- Tax Code, and promote savings and the Senate floor, I wish to express to come: the retirement of the baby boom growth. him through the Chair my appreciation generation will place an unsustainable Clearly, adopting a comprehensive for the kind and very thoughtful words burden on younger Americans. energy policy and reforming our tort about our friend Howard. The President is right to call on the system are cornerstones of economic Howard Liebengood represents what Congress to rise to this crisis. I believe growth. I believe that we have a real the Senate is all about. Spread we have an opportunity to rise above opportunity to work across party lines throughout the Senate, we have hun- partisanship, to do what it right rather on these issues. dreds of people who work for us every than what is expedient, and to leave a Chairman DOMENICI has renewed his day who are just like him, extremely legacy of leadership for our children. efforts to bring a bill through the En- well educated. If their goal in life was This Congress will continue to meet ergy Committee and we look forward to see how much money they could the challenge of our generation, to to results. The Senate will soon begin make, they would not be working here. fight and win the war on terror. its debate on class action reform. It is They do it because they have a sense of I would like to thank Chairman COL- an important place to start. Our tort public service, as indicated with his LINS for her tremendous leadership last system costs our economy nearly $250 record. Congress. She successfully completed billion per year. That’s the equivalent The Senator’s kind words about How- the first major overhaul of our intel- of an $844 ‘‘tort tax’’ on every Amer- ard today are words that can be di- ligence services in a generation. ican. This bill will be an early success. rected to each one of the people who We will continue to look to her as I’m grateful for the hard work on both work for us. He was what the Senate is she undertakes the important task of sides of the aisle that have gone into all about. He not only should be but is ensuring that we commit our resources this important initiative. a role model for what the Senate staff- where the threat is greatest. We cannot afford to let lingering con- ers, as we call them, try to be. If they Today, we will introduce legislation cerns about a tax increase on small completed their term of service having that honors our service men and businesses stall our economic growth. given up the fruits of how much money women who have made the supreme The President’s economic stimulus they could make outside the Senate sacrifice. They have given all to our package was exactly the right medi- and were thought of as Howard was Nation and the cause liberty; and we cine at the right time for a faltering thought of, I believe their lives would will give more to better care for the economy. From day one it has led to be complete. ones they loved. steady growth. We need to make those I thank the leader very much. As I I’m grateful for the hard work of tax cuts permanent so we can keep our said, his remarks not only spoke of a many Senators in this effort, particu- economy growing and creating jobs.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00003 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S110 CONGRESSIONAL RECORD — SENATE January 24, 2005 Critical to our long-term competi- INTRODUCING DEMOCRATIC alive and well for all of us? In part, it tiveness is an educated and skilled LEADERSHIP BILLS is because we have a Government that workforce. Chairman ENZI will intro- Mr. REID. Mr. President, in the be- simply does not live up to the values duce legislation today grounded in es- ginning of each session of Congress, the upon which the promise was made. We sential core principles. majority and minority introduce their have leaders whose poor planning and We will improve our Federal edu- bills. The first 10 bills are those of the mismanagement have sent young men cation and training programs by set- majority. That is the tradition of the and women into battle overseas, some ting high expectations and raising Senate. The distinguished Republican say without the equipment and support achievement for all students. We will leader has worked hard, as have I, put- they deserve to succeed in the battle- demand accountability for results. And ting forward the bills that represent field. we will support learning opportunities the majority. I have worked hard put- Some way, and I certainly underscore for students at all stages in life. ting forward the bills that represent this, there was a plan to win the war It is time that health care followed the minority, and I with Senator DUR- but not a plan to win the peace. We the rest of our economy and join the BIN, Senator STABENOW, and Senator have a Government that by any meas- Information Age of the 21st century. SCHUMER today in the Lyndon Johnson ure fails to do all it can to make our Our health care system is a model of Room presented our bills to the public. country safe and secure. We have lead- spectacular inefficiencies: high and The promise of America is a simple ers who love to create crises when they rapidly rising health care costs, grow- one. It is a promise that says if one do not exist, such as Social Security, ing ranks of the uninsured, chasms in works hard and plays by the rules, they which will be funded for many decades quality and health care disparities. can build a stronger, brighter future into the future, some say as far as the In order to transform this system, we for themselves and their family. This year 2055. must agree on a guiding principle: all promise has lived on for generations in Some say there is a crisis with Americans deserve the security of life- judges. This morning someone asked: long, affordable access to high-quality this great country of ours. It is one that I have lived personally. What happens if you do to President health care. Bush this next 4 years what you did the The focus of a 21st century health As a result of hard work and the gen- first 4? I say, well, he should jump with care system must be the patient. The erosity of people who helped me with joy. That would mean 408 judges he system must also be responsive pri- my education, I received a good edu- would get approved and 20 disapproved. marily to the consumer, rather than cation, and in the process many doors The Constitution has in it a clause third-party payers. In a transformed were opened. After completing my edu- that deals with advise and consent. If system, we must reestablish the doc- cation, I was able to go into business the oath I took just a few weeks ago to tor-patient relationship, and utilize and now have what I believe is the best uphold the Constitution means any- technology to promote efficiency and job in the world—a Member of the Sen- thing, certainly that part of the oath provide care. ate representing the people of the I am pleased that we will be intro- State of Nevada. that says I must live up to the Con- ducing legislation that begins to build My story is not unique. As many stitution, it says the Senate of the on these principles, utilizing the work know, I was born and raised in Search- United States has an obligation, legal of Senator GREGG and the Republican light. Searchlight represents many in nature, to give advice and consent to Task Force on the Uninsured. We will places throughout this country. It rep- the President of his nominations. I will address rising costs, increase coverage resents countless individuals whose continue to do that. I believe that is a and expand access to care. lives have been blessed, as mine has. I role we have. We are also a Nation that values am sorry to say that these stories There are real crises. I have talked community, family, and compassion. about a young boy or girl from a place about some of them. I talked about We will work to build on the success of like Searchlight are becoming fewer others: education, health care, the en- our welfare laws which have helped and fewer. We now have crumbling vironment that we do not talk about over 7 million people move from de- schools. The average school in America much anymore. Energy is a crisis we pendency to the dignity of work. is 50 years old. We have schools such as have in this country. The staggering But in doing so, we will recognize the those in the southern Nevada area, the deficit we have developed these past 4 need to support those who do the hard Las Vegas area, that are being built at years is a crisis. I believe there are real work of compassion—caring for those a rapid place. As many as 18 in 1 year crises that are crippling our economy, in need. Our tax proposals will support have to be dedicated to keep up with hurting the large and small businesses, these private efforts while also helping the growth of Las Vegas. The super- and pricing too many families out of those who are raising children and end- intendent of public education has be- quality health care. That is what our ing the discrimination against mar- come a superintendent of public con- legislation we introduce today deals riage in the law. struction. School districts need help with. We have a Government that has We will also continue our efforts to with their schools, in inner cities and forgotten who it is responsible to, one promote and defend marriage, and to in rural communities. that has become content with feeding support parents as they seek to guide Good-paying jobs are giving way to tens of billions to the special interests their children in difficult times. Today, jobs that, no matter how hard one while failing in its commitment to tens Senator ALLARD will introduce the works, just don’t pay the bills. There of millions of seniors. marriage protection amendment which are 45 million people without health America’s promise will not stay alive I hope will be sent to the States for care. That means there are too many if America’s Government betrays it, ratification. Americans who are not getting the and that is why at the outset of this Last Thursday, we had the oppor- care they need to live healthy and Congress Senate Democrats are com- tunity to celebrate the enduring value prosperous lives. mitted to restoring the promise of of a free people exercising their right This is the America we live in today, America by pursuing an agenda that to self-governance. But with each new a country whose founding promise is honors the values behind it, the values political beginning, we have the re- slipping further away from reality for of security, opportunity, and responsi- sponsibility to answer to the people we far too many American families, a bility. These values are at the core of serve. I believe that we have such an country where a kid like me from America’s promise. opportunity, and I have great faith in Searchlight finds it harder to get The ten Democratic bills which I will my colleagues in the U.S. Senate to du- ahead, despite the generosity of people introduce today deal first with Amer- tifully answer that call. in the community, the good will of ica’s security. For example, we need to f teachers, and a work ethic, which is work to increase our Special Oper- important. ations Forces by 2,000 individuals. We RECOGNITION OF THE MINORITY Why do we find ourselves in this need to expand the pace and scope of LEADER state today? Why is the promise of programs to eliminate and safeguard The PRESIDING OFFICER. The mi- America, the promise that led me and nuclear materials and enhance efforts nority leader is recognized. others to this great Chamber, not still to prevent radioactive and other deadly

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00004 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S111 materials from entering the United chase new buses that will get kids to a stronger and brighter future for their States. That is Nunn-Lugar. We must school in a reliable and safe manner. families. While these 10 bills do not do more than what we have done with S. 16 will make sure health care is represent all the goals of the 109th Con- the Nunn-Lugar legislation. more affordable to families and busi- gress, they represent the start and the We must increase our military. Our nesses. We know health care costs have core of our mission. legislation calls for an increase by spiraled. That is why we will bring No doubt we will tackle many other 40,000—30,000 in the Army and 10,000 in down the price of prescription drugs by important issues before Congress the Marines—so that we have enough legalizing safe importation of FDA-ap- closes, but we will never lose sight of troops to win the peace in Iraq and proved prescription drugs from indus- the values for which we fight and the fight terrorism around the world with- trialized countries. We will also ensure promises we must keep. out extending tours of duty to the that every child in America has access For instance, when it comes to breaking point. to health care and that every pregnant strengthening Social Security, Demo- We will create a Guard and Reserve woman in America can get the mater- crats will keep America’s promise. The bill of rights to protect and promote nity care she needs and deserves. We program is our bargain that says those the interests of our dedicated citizen will reduce health care costs by cre- who work hard and pay their taxes soldiers and fight for the families of ating incentives to modernize health have earned a secure retirement. Our those who serve to recognize the sac- care and by offering tax credits to values compel us to keep the promise rifices they have made. S. 13 will fulfill small businesses. of security to our seniors, and Senate our duty to America’s veterans. It will Finally, we want to build a govern- Democrats will do this. We will not ir- ensure that all veterans get the health ment that meets its responsibilities responsibly cut benefits or jeopardize care and prescription drugs they de- both to Americans today and in the fu- the opportunity of future generations serve while also expanding the avail- ture. S. 18 will help America’s seniors. with $2 trillion in new debt. This is ability and accessibility of mental Medicare should work for seniors, not keeping America’s promise, and that is health care. We will ensure that no vet- the HMOs and drug companies. First what Senate Democrats will do. eran is forced to choose between a re- we will eliminate the provision that ac- In closing, I would like to say a few tirement and disability check, and tually prohibits Medicare from using words to my colleagues across the launch a 21st century GI bill that tells the negotiating power of its 41 million aisle. We hope and believe many Re- soldiers of today that we will help beneficiaries to get lower prices. The publicans share our view that we must them to succeed when they return, just Medicare bill has a provision in it that not allow partisanship to stand in the as we did for those great heroes who re- says Medicare cannot negotiate for way of America’s promise, or let poli- turned from World War II, Korea, and lower prices. They have to go to Rite tics get in the way of keeping alive the Vietnam. Aid and other places, just like the rest American dream. That is our pledge. We need to expand opportunities to of us. They cannot compete with the We will work with the majority in all Americans, and economic oppor- HMOs which can buy their drugs in meeting the demands of America. tunity is going to be extended through bulk. I recognize the first 30 minutes of S. 14. We, for example, will end tax in- We will eliminate the giveaways like morning business time was that of the centives that encourage companies to the $10 billion slush funds for hospitals majority. How much time did I use? ship jobs overseas. We are going to re- in the Medicare bill. We will improve The PRESIDING OFFICER. The dis- store overtime rights for 6 million the prescription drug benefit by phas- tinguished Senator used 141⁄2 minutes. workers who lost that guarantee last ing out the current donut hole where Mr. REID. I apologize to my friends year. seniors pay a premium but get no cred- on the other side of the aisle. Ten min- S. 15 will help us with education. It it. Seniors across the country were utes of that will be leader time. The must be a cornerstone of equal oppor- shocked by the record increase in rest Senator DURBIN will use for what- tunity. Democrats will keep our prom- Medicare Part B premiums this year. ever he feels appropriate when our time ise to our children by increasing sup- This must be addressed. We must be a comes. port for preschool education, fully government that honors its respon- The PRESIDING OFFICER. The dis- funding No Child Left Behind and mak- sibilities to future generations. We tinguished Senator from Illinois. ing sure it is implemented the right have had reckless spending these last 4 f way. We will address the shortfall of years. It has turned record surpluses math, science, and special education into record deficits and has mortgaged ORDER OF PROCEDURE teachers by creating tuition incentives our children’s future. It is long past Mr. DURBIN. Mr. President, it is my for college students to major in these time for Washington to return to the understanding there are two or three fields, and we will work to make sure same commonsense budget that fami- Senators on the floor who would like to every American who wants it can af- lies use around the kitchen table every pay tribute to Mr. Liebengood, as Sen- ford 4 years of college with new tuition day, and that is why we will call for ator FRIST did. I will ask unanimous tax credits and relief from burdensome pay-as-you-go budgeting. consent they be recognized, if we can loans. Our final bill, S. 20, will support get an idea how much time they will There are problems in rural school women in making responsible choices use, and then if we could return to the districts in Kansas, Nevada, Illinois, about their health. The United States scheduled morning business with the Nebraska and Utah. I have found, in has the highest rate of unintended remaining time on the Democrat side my travels through rural Nevada, one pregnancies among all industrialized and then the balance on the Republican of the biggest problems the school dis- nations. Half of all pregnancies in this side. tricts in rural Nevada have is school country are unintended and nearly half Mr. HAGEL. I will require no more buses. That might not seem like much of those end in abortion. By increasing than 3 minutes. in the overall scheme of things, but it access to family planning services, Mr. HATCH. Mr. President, I think I is rare for a bus in Nevada rural Democrats will improve women’s can do mine in 5 minutes, maybe less. schools to be new. They buy used, old health, reduce the rate of unintended Mr. ALEXANDER. Less than 5 min- buses. Most of the buses are worn out pregnancies, and reduce the number of utes. before they get them. We could help abortions, all while saving scarce pub- Ms. COLLINS. Mr. President, I had rural America in lots of different ways, lic health dollars. requested 10 minutes to introduce a bill but we could help rural America so Security, opportunity, and responsi- at the conclusion of the tributes. much if we provided a way where they bility—these are more than just three Mr. REID. Mr. President, I apologize. could buy new buses. We need to do words or three values. They are the I didn’t know people were here to that. When school districts have these foundation on which America’s promise speak. If I had, I would certainly have old buses, children have no choice but is built. Senate Democrats open the withheld. There is more than ample to ride in outdated, unsafe buses. That 109th Congress steadfastly committed time. There is 30 minutes in morning is why we will create a Federal pro- to keeping this promise alive, so that business. They will have whatever time gram to help rural school districts pur- all Americans who work hard can build they need. There is lots of time.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00005 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S112 CONGRESSIONAL RECORD — SENATE January 24, 2005 Mr. DURBIN. Mr. President, I would structure? That he was an accom- his chief of staff. Senator HAGEL and be happy to renew my request to give, plished lawyer, businessman, and mili- Senator HATCH had something to say, let’s say, 15 minutes for tributes to Mr. tary hero who never forgot his small- and many others will. So the question Liebengood at this point. town roots in this often heartless big might be, What could I add to these el- The PRESIDING OFFICER. Without town? That he was a man of faith, oquent words? What I can add today objection, it is so ordered. whose church was a source of strength are some of Howard’s own words. The Senator from Nebraska, the dis- in the hardest of times? Howard spent the last 2 years doing tinguished champion of the Plains, is I can say all of these things—and something that is very special in the now recognized. more. Senate. He and my chief of staff Tom f I have been proud and humbled to Ingram had lunch every week, and call Howard Liebengood a friend. He their stated objective, among all the TRIBUTE TO HOWARD was a trusted adviser to me and so other things, was to make sure the LIEBENGOOD many other Senators. He was my Frist staff and the Alexander staff Mr. HAGEL. Mr. President, I rise, as neighbor in Virginia, and we often didn’t compete with each other but was noted, to recognize and pay tribute drove to work together. When I had my worked together to serve the people of to and remember our dear friend How- Achilles’ tendon rupture—completely Tennessee. ard Liebengood. I thought the majority severed my tendon—Howard and I rode That may sound to people outside the leader’s comments concerning Howard together every day. Those were some of Senate like the way it always is, but Liebengood could have been recited by the most wonderful times I’ve had. that is not always easy to do. But I any and all who knew him. My friend- We shared some wonderful times; I think it is fair to say—and a lot of this ship with Howard Liebengood goes always looked forward to his keen ob- credit goes to the majority leader be- back almost 30 years. When I first be- servations and his wry good wit and cause of his attitude and his generous came acquainted with Howard and his very strong intelligence. spirit and his unselfishness—our staff wife Dee, we would bet on the Kansas I knew what many in this body knew worked beautifully together for 2 State-Nebraska football game every about Howard, that we could always years. We haven’t competed with each year. I know the Presiding Officer has count on him to listen, and care, and other. That is because of the spirit of a passing interest in that game. How- act—not in his own self-interest, but Howard Liebengood. ard, each year, would come back for for the greater good. As a result, we invited him last Sep- more. These were the days when Kan- Howard was so successful in our tember to our staff retreat. We wanted sas State had not defeated Nebraska world, yet he was never driven by many of the staff members—some of for many years. But one of the extraor- money, fame or desire. whom are the age of his children or dinary parts of this extraordinary man His many accomplishments—the even younger—to hear from him how was an optimism, not only about Kan- Bronze Star, his work in the Senate on he views this Senate which was his sas State football but about life. All the Watergate Committee, as our Ser- home really for 30 years, why he loves that he touched, all he represented, geant at Arms, as Chief of Staff to two it so much, and why he conducted him- and all who knew him were uplifted by of our greatest Senators—tell volumes self the way he did in a world that is this gentleman, this man who always about Howard, but they do not reveal supposed to be cynical or cutthroat and put his friends first. the inner peace and calm that made competitive, where you take yours and I recall when Howard and Dee’s chil- him such a wonderful, wonderful part the other guy gets his. That wasn’t dren were young, I would occasionally of this institution, a tribute to all that Howard Liebengood at all. go to their home in Vienna for a little is good in public service. I have a copy of the notes Howard chili cookoff. It was not a big group; it What more can you ask in a man? used for that evening. He went on for was just us. Howard always had the re- Nothing. about an hour, and the staff members markable ability to reach beyond his Howard did it all. told me they wished he had gone on for professional capacity. After all, we are Howard had it all. 2 or 3 hours. He told stories about law all judged and will be judged by that His loss is so great. Our loss is so school. He told stories about Fred dynamic at the end of our lives. It will great. This body will mourn his loss for Thompson, the Intelligence Com- not be for whatever professional ac- so many years to come. mittee, and about Howard Baker— complishments we have but it will be I know all here today join in sending many of the incidents which Senator for what we have done for others and both our deepest sympathies to the FRIST talked about. But when he came how we are remembered by others, as Liebengood family, and our profound to the end of his remarks, he said this. was noted by the majority leader in his admiration for Howard S. Liebengood— I believe perhaps the most important remarks. husband, father and trusted public thing I can contribute to this discus- So, today, as I and others rise on be- servant. I knew him personally very sion honoring our friend Howard is his half of Howard Liebengood, we cele- well. He was kind. He was considerate. own words about why he came and why brate his life and his family and all the He was helpful. He was always down he stayed in the Senate. He concluded light that he brought to so many of us the middle. He was someone to rely on. his remarks to our staff last October for so long. This dear, dear man, we Let us celebrate his life today and all saying this: ‘‘I came for a year.’’ will miss greatly. But he does leave the that was so good in this man, even as This is when BILL FRIST asked him to world better than he found it. we mourn Howard S. Liebengood’s come back. The PRESIDING OFFICER. The dis- tragic passing at too early a time. ‘‘And I stayed two.’’ tinguished Senator from Utah is recog- The PRESIDING OFFICER. The dis- He said, ‘‘It is hard for me to leave nized. tinguished Senator from Tennessee is the labor of love that is for me the U.S. Mr. HATCH. Mr. President, I have to recognized. Senate, the institution herself, in say that Howard Liebengood was one of Mr. ALEXANDER. Thank you, Mr. every way. From the people to the pro- my dear friends and I think he was a President. tocol and the opportunity to serve the dear friend to virtually everybody in Mr. President, last week Howard people of Tennessee, I have relished the Senate on both sides of the aisle. Liebengood’s best friend, former Sen- every moment. How blessed I have What a good man. ator Fred Thompson, spoke eloquently been,’’ Howard Liebengood told these What can I say about Howard about his life with Howard over the young staff members, ‘‘throughout my Liebengood? That he was a loving, car- last 30 years since their time at Van- life to have these exciting assignments, ing family man who placed his lovely derbilt Law School. Marty Gold, whom these remarkable colleagues, spectac- wife, Deanna, and their wonderful chil- all of us know, spoke about Howard ular leaders, and challenging work— dren, Howie, John, and Ann, above all Liebengood in a little different way. never a dull moment. I am forever else? That he was the consummate The majority leader spoke about him grateful to Fred Thompson for bringing Capitol insider, who managed to retain today in still a different way from the me here and to Howard Baker for keep- humility and kindness while rising to experience he had with him in the last ing me here and being my personal in- the pinnacle of Washington’s power few years and especially the last 2 as spiration, to the incomparable BILL

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I first go to know him The parting thoughts Howard quaint, I continue to regard the Senate when he worked as a member of the Liebengood said to my staff last Sep- as a family—one where personal friend- staff of the Senator from Tennessee, tember were these: ‘‘Always be true to ships can transcend ideological beliefs, Mr. Baker. yourself. Trust your best instincts. and one that in its finest moments can He later served as Sergeant at Arms Serve humbly and unselfishly. Distin- rise above party differences to truly guished Senator for whom you work and Doorkeeper when Senator Baker make a difference in the lives of the was the Republican leader. and Tennessee at every turn. Relish people whom we serve. It is in that your time here. Take pride in your spirit that I speak today in memory of It was my pleasure to know Howard’s work, but never be haughty. Look out Howard—a vital and well-respected family as well. His wife Deanna was a for your colleagues at every turn. And member of this family for over 3 dec- very important asset and an admired walk with the Lord.’’ ades. and respected member of the Senate He concluded: ‘‘With that formula Howard served here in a number of family. my experience suggests that both capacities—as minority counsel to the We will miss Howard’s ready smile Washington and life will treat you very Watergate Committee in the 1970’s, and his keen insight on the issues fac- well. Thank you for having me with where he worked closely with Senator ing our country. He was truly a won- you this evening.’’ Howard Baker; as Sergeant at Arms derful person and a loyal friend. I think all of us would say today that from 1981 to 1983; and finally, as chief The PRESIDING OFFICER. The Sen- Howard treated Washington and life of staff to Senator Fred Thompson and ator from Illinois. very well, and we are grateful that he majority leader BILL FRIST. He also Mr. DURBIN. Mr. President, it is my came our way. maintained his relationship with the Thank you, Mr. President. understanding that the tributes to Mr. Mr. DURBIN. Mr. President, are Senate for many years working in Gov- Liebengood have been taken from the there further tributes to Mr. ernment relations for a variety of cli- morning business time allotted to the Liebengood? ents. Republican side. I came to know Howard in 1981 when Mr. MCCONNELL. Mr. President, I The PRESIDING OFFICER. That is hope to say a few words about Howard I entered this body as a freshman Sen- ator, and he began his term as Ser- correct. Liebengood. Mr. DURBIN. How much time is re- The PRESIDING OFFICER. The dis- geant at Arms. I gained an immediate maining on each side in morning busi- tinguished Senator from Kentucky is and lasting appreciation for Howard— ness? recognized. not only as Sergeant at Arms, but as a Mr. MCCONNELL. Mr. President, I human being. The PRESIDING OFFICER. There is listened carefully to Senator ALEX- The Sergeant at Arms in the Senate 17 minutes on the majority side and 25 ANDER’s observations about our good is a position that encompasses enor- minutes on the minority side. friend, Howard Liebengood. I first met mous responsibilities—from security, Mr. DURBIN. I ask unanimous con- Howard as he was leaving the Senate. I to printing and graphics, to tech- sent that Senator COLLINS be recog- came here the year Senator Baker re- nology, to recording, to financial oper- nized on the Republican morning busi- tired, and Howard was on the way out. ations. To put it quite simply, the day- ness side, and I will follow her with the I wasn’t sure that I would get to know to-day business here in the United remaining time on the Democratic him because everybody even before I States Senate depends on the Office of side. got here—it seemed like everybody I the Sergeant at Arms, and on the serv- The PRESIDING OFFICER. Without ran into—knew Howard Liebengood. He ice of people like Howard. objection, it is so ordered. was part of this institution. He was on Howard Liebengood was a man who The distinguished Senator from the way out as Senator Baker left. loved this institution and who loved In thinking about the last 20 years— our country—and that love was re- Maine is recognized. that was 20 years ago—Howard flected in the way he approached his Ms. COLLINS. Thank you, Mr. Presi- Liebengood really never left the Sen- work. Howard was a good and decent dent. I thank my colleague from Illi- ate. He was always in this town avail- man whose humor, calm, and patience nois for his courtesy. able as a resource to all of us. I called were well-known to all of us who were (The remarks of Ms. COLLINS per- upon him frequently over the entire pe- fortunate to know him. He was an indi- taining to the submission of S. Res. 8 riod when he was technically not work- vidual who worked well with Senators are printed in today’s RECORD under ing at the Senate but was in town and and staff from both parties. Howard al- ‘‘Submitted Resolutions.’’) providing his good advice to anyone ways impressed me as someone who Mr. DURBIN. Mr. President, I didn’t who would ask. cared more about the Senate, and the know Mr. Liebengood, but I listened I say to my friend, the junior Senator role it plays in our democracy, than he closely to the tributes made today. He from Tennessee, and to the majority did about advancing any particular clearly was an extraordinary person leader, you were lucky that Howard party’s agenda. In all the positions he who touched the hearts of many in the Liebengood was from Tennessee. I wish occupied in the Senate, he always United States on both sides of the he had been from Kentucky. He was a cared deeply about the things that aisle. There are so many like him who wonderful man and a great part of this unite us as Americans, rather than give a great contribution to this insti- institution that we will not soon for- those that divide us along partisan po- tution. I hope when the time comes get. litical lines. He understood that the they will receive the same memorial I yield the floor. strength of the Senate as an institu- and tributes as Mr. Liebengood re- Mr. DODD. Mr. President, I rise to tion and its significance in shaping our ceived today. speak in memory of Howard history reside in the ability of its The PRESIDING OFFICER (Ms. MUR- Liebengood, who passed away on Janu- Members to reconcile differences for KOWSKI). The Senator from Illinois. ary 13. The majority and minority the good of our Nation. leaders and other Members of this body This institution and our Nation are Mr. DURBIN. It is my understanding have already spoken in Howard’s mem- indebted to Howard for his years of on the Democratic side we have 25 min- ory. In addition to associating myself service. I offer my deepest sympathies utes remaining in morning business; on with their remarks, I would like to to Howard’s wife Dee and their three the Republican side, how much time re- offer a few brief words of reflection on children. mains? behalf of myself and my wife Jackie, Mr. COCHRAN. Mr. President, I am The PRESIDING OFFICER. There is who knew Howard well through her pleased to join the distinguished ma- 5 minutes remaining on the Republican work for Senator Jake Garn of Utah. jority leader, Mr. FRIST, as a cosponsor side.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00007 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S114 CONGRESSIONAL RECORD — SENATE January 24, 2005 SCHEDULE OF THE 109TH to start their families, had a lot of ba- of their earnings, would pay less—per- CONGRESS bies in a hurry, the so-called baby haps 4 percent of their earnings and Mr. DURBIN. Madam President, this boom generation. Those kids, first born then take the other 2 percent and put is a critical day in the schedule cal- after 1945, will reach retirement age it into privatized accounts—into the endar of the Senate. For those who fol- and start showing up and asking for stock market, mutual funds, some- low the ebb and flow of business in the their Social Security checks. By our thing of that nature. The argument Senate, this is the kickoff, the tip-off, projection, we will not have enough from the President’s supporters is that the first pitch. This is the week when money. this would mean they have ownership we start rolling up our sleeves to get So in the mid-1980s, President Ronald of their future because they are invest- down to business. Reagan, a leading Republican, came up ing their own money. Traditionally, the leaders on both to Capitol Hill, met with the House There are several things on which the sides, Republican and Democrat, an- Democratic Speaker, ‘‘Tip’’ O’Neill, President has not given the details. By nounce their priorities, what they the leading Democrat of the day, and most calculations, taking money out of would like to see as the legislative ac- said: Can we come together and agree Social Security for privatization, par- complishments of this session. I am on a plan that will make sure Social tial or otherwise, means cutting the certain the list announced today by Security is going to be able to handle benefits of Social Security retirees. Senator FRIST and Senator REID are the baby boomers. They sat down and How can you take the money out of the not exhaustive. There are many issues went into a lengthy negotiation, a system that we planned on using to pay that were not included on either list commission, debate, a study, and came retirees for the next 37 years without that will certainly be discussed. up with a proposal. The net result of cutting those benefits? And, if you do However, I think it is interesting that proposal was to change the Social not cut the benefits, how do you make what we find when we compare the two Security law in the early 1980s to make up the difference? Some estimate the lists. On the Republican side, the No. 1 certain that Social Security would privatization of Social Security will priority, the highest legislative pri- have a bright future. cost us $2 trillion in the first 10 years. ority from Senator FRIST, is what is In 1983, we passed this law which Questions have been asked. I was at a termed the Social Security Solvency bought 53 years of solvency for the So- meeting where questions were asked of and Protection Act. cial Security system. So we can say for the President: How will we pay for the On the Democratic side, we have a more than half a century Social Secu- $2 trillion? The argument is, we will different approach. Our first priority is rity will be running in the black and add it to the national debt, the largest the title of ‘‘putting America’s secu- not in the red. increase in the national debt in the his- rity first, standing with our troops.’’ What changes did we make? Some in- tory of the United States to privatize Both of these legislative proposals volve benefits, some taxes. Some were Social Security. Is that what we are address important issues. No one ar- controversial; some were not. bargaining for? gues that the Social Security system When it is all said and done, we did A lot of people have said if you in- should not be carefully watched and the right thing. We took a program crease the national debt, it means the that we should not address the law and that was about 50 years old and gave it United States has to borrow more change it from time to time. However, over 50 more years of life by reaching a money. Where do we borrow money? it is interesting that both President bipartisan decision that would give to We borrow money from Japan and Bush and the Republican leaders in the Social Security that bright future. China and Korea, countries that not Senate have decided the highest pri- That is what happened in the mid- only lend us money for our debt but ority for this session is Social Secu- 1980s. then expect us to buy more of their rity. Now comes the President and his Re- products in return. The reason why I find it interesting publican friends in Congress saying: So when you look at the imports is that they prefaced this decision by Stop; we have a crisis on our hands in coming into the United States from all saying we are facing a crisis in Social Social Security. If we do not do some- over the world, they are coming in Security. Some use those terms. The thing, and do it today, if we do not largely from countries that are buying President himself has called it a prob- make dramatic changes in Social Secu- our debt. So $2 trillion more in debt for lem. Some have called it a challenge. rity, it will not be there to pay the future generations, $2 trillion more in But whatever your characterization, it workers of tomorrow. foreign products coming into the is clear that the White House believes That overlooks the obvious. The So- United States. Lord only knows what it this is the issue that should come first cial Security Board takes a close look means to the future of our economy of all issues that Congress might con- at the system and they tell us what we and jobs going out of the United sider. did in the mid-1980s still works today. States. If we did nothing to Social Security, We have at least 37 more years of sol- As you can see, this is a complicated if we made no change whatsoever in vency in Social Security. So there is no issue and it is an issue that will be the the law—didn’t change a comma, a immediate crisis. subject of a long debate. semicolon, put a period at the end of Is there a challenge? Yes, because in This is what I think. If privatizing the sentence, nothing in the law—So- 2042, we have to change the law so that Social Security means cutting benefits cial Security would continue to pay it brings in more money or in some for the retirees in the future, if it out to over 47 million Americans every way is handled in a different fashion so means adding $2 trillion to the na- payment with a cost of living adjust- more people are covered. So 37 years tional debt to be paid for by future gen- ment for 37 years from today. There is from now, we have a challenge. erations, it is not a good bargain. But not another program in the Govern- Can we do things today to address it is the No. 1 priority of the Repub- ment that you can say the same thing that challenge? You bet we can. We can licans in the Senate. about. There is no other program that make modest and commonsense In fairness to the Republican leader- you can say with any certainty is fund- changes in Social Security that will ship and to the President, we want to ed to be in existence 37 years from give it 20, 30 more years of life. That is see the proposal. We want to see what today. a responsible thing to do. the President is actually asking for. Most other programs depend on the Listen to what the White House is There have been a lot of press con- Appropriations Committee and the will proposing that we do with Social Secu- ferences. The President has ads on tele- of Congress and the leadership of the rity. It is not a question of a modest vision now. He has been visiting dif- President for funding. Social Security, commonsense change. It is a dramatic ferent cities talking about privatiza- left untouched, is on track for 37 years and some would say radical change in tion of Social Security. But we need to of solvency. Why? Because in the early Social Security. What the White House see the law. 1980s, leaders in Congress took a look is proposing is that we partially pri- What we think, though, is if you at the Social Security system and said: vatize Social Security. In other words, want a real crisis in America you can We have a problem. The problem is, re- the workers who are paying into Social find it, a crisis that deserves our imme- turning GIs from World War II, anxious Security, instead of paying 6.2 percent diate attention. Allow me to start with

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00008 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S115 health care. In the last few years—in have no choice but to turn to Canada household that may or may not have a fact, in the last 4 years—we have seen and other sources of reimported, safe husband present. They are making a dramatic increase in the number of American drugs. We support that. great sacrifices, sometimes holding uninsured Americans. Since President We also believe we need to monitor down two jobs. And for over 7 years, Bush took office, we have increased the drugs more carefully. How many times this administration has resisted, first number of uninsured Americans, those have we heard the news in the last sev- in Congress, now in the Presidency, in- without health insurance, from 40 to 45 eral weeks about the Food and Drug creasing the minimum wage. Try to million. And the cost of health care has Administration discovering that a drug live on the minimum wage as you know skyrocketed in America. that had been for sale in the United it today. It is virtually impossible. We What is being done by this adminis- States for a long period of time is un- think work deserves our dignified re- tration, by this Congress, to deal with safe, taken from the market? You have spect and deserves a dignified wage. We the skyrocketing cost of health care? heard it, as I have, time and again. We favor increasing the minimum wage. Virtually nothing. Why? Because in make certain that drug approvals in We also want to deal with the export- order to tackle this issue, you have to this country are going to be handled in ing of American jobs overseas. Lou acknowledge the obvious. The market a way that will give consumers con- Dobbs talks about this all the time. forces are at work, and the market fidence in what they are buying. You know what is happening. Good- forces are killing us. The second issue is the one of edu- paying manufacturing jobs are leaving The cost of health insurance con- cation. Many of us voted for No Child America. Why are they going overseas? tinues to go up every year; the cov- Left Behind, the President’s premier Well, sadly, our Tax Code rewards com- erage goes down. Fewer and fewer peo- education program, expecting that panies that send jobs overseas. That is ple can afford it. Businesses are seeing once we identified the problems in wrong. these costs skyrocket, and they cannot American schools, we would provide Secondly, we are not calling in the be profitable because of these costs or the resources to deal with them. It did trade police on the countries that are they have to cut off health insurance. not happen. President Bush and the violating trade practices and trade That is the reality. leadership in Congress refused to fund, treaties. So when China manipulates The business leaders I speak to in Il- to the authorized amount, No Child its currency so it puts American busi- linois, large and small, all tell me the Left Behind, which meant that schools nesses out of business and workers on cost of health insurance is the No. 1 that were falling behind did not have the street, we do not hold them ac- crisis they are facing. Why isn’t that money for smaller class sizes, for after- countable. on the list of the Republican leader- school programs, summer programs, The Democrats believe that should be ship, to deal with the cost of health in- and tutoring. As a result, having iden- a legislative priority. If we are going to surance and this health care crisis? tified the problems, we walked away have good jobs for our workers and We believe on the Democratic side, from them. those coming out of college, we have to and have a legislative proposal, to give We believe on the Democratic side stand up and fight for the jobs that are tax credits to small businesses that do that funding education across America leaving America. That is a critical ele- the right thing, that protect their em- is our highest priority. I just heard the ment. ployees with health insurance. That, to Senator from Maine talk about Pell Let me add to that list. I said at a me, is a good tax reform. It accom- grants. I could not agree with her press conference today, and I believe it, plishes exactly what we want. It more. Pell grants are the way a lot of the political tsunami that is about to strengthens small business, the No. 1 kids have a chance to get a college edu- hit us in the United States relates to generator of jobs in America, and helps cation. You know the story. Kids work pensions and health care for retirees. them when they do the right and re- hard in school. They graduate from col- Think about how many people in sponsible thing by covering their em- lege with $10,000, $20,000, $30,000, $40,000, America worked a lifetime believing if ployees. There are a lot of tax cuts peo- $50,000, $60,000, $70,000 or $80,000 of debt, they paid out of every paycheck a cer- ple are talking about. You have heard and these kids turn to the marketplace tain amount of money, that when they a lot of talk on this floor about them. and say: I have to take the best paying retired they would have a private pen- But this is one that makes eminent job, if I can find one. sion plan taking care of them—thou- sense. Pell grants mean students do not sands and thousands of Americans. We also need to do something with have to borrow as much money. The What is happening today? Those com- the related issue of the cost of prescrip- new rules from the Bush administra- panies are going bankrupt. Those com- tion drugs. A lot of people, including tion, just released, means fewer Pell panies are in a position where they are the Governor of my State, have pro- grants will be available. In Illinois, trying to restructure and walk away posed that we import drugs from Can- 48,000 students will see their Pell from their pension requirements, walk ada. Why in the world would this great grants cut because of the Bush admin- away from health care retirements. country of ours be dependent on a istration proposals. And 1,450 will lose The system we have set up in this smaller country, an important but them entirely. That is not the way to country is not adequate to the task. So smaller country, Canada, for our pre- encourage young people to pursue the if we want to make certain these scription drugs? education of their dreams, to prepare Americans have the retirement they It is because, frankly, we are not im- themselves for the 21st century. planned on, we need real leadership porting prescription drugs from Can- We also believe, and Senator SCHU- here in Congress. ada. We are importing political leader- MER has been a leader on this issue, The last issue I will mention today ship. that families ought to have the tax de- has to do with reforming voting in The Canadian Government had the ductibility of college education ex- America. I think the last election was political will and courage to stand up penses. You can deduct the interest on better than the one before, not in the to American drug companies and tell your mortgage. Why? Because we want outcome—I saw that differently—but them they could not continue to dra- to encourage home ownership. Why in the way it was handled. Yet in the matically increase the cost of drugs for wouldn’t we say to families, you can State of Ohio, in my State of Illinois, sale to Canadians every single year. deduct college education expenses so as in States around the Nation, voters The American drug companies said: All to encourage your son or daughter to walked to the polling place and many right, then we won’t. But this Govern- achieve their dreams with higher edu- of them ran into obstacles they should ment and this Congress will not stand cation? That is another type of tax re- not run into. We ought to make voting up to those same drug companies. As a form which I think is very positive. easier in America. result, costs skyrocket in America, and When it comes to economic oppor- When an American citizen does the they are half that cost in Canada. tunity, we believe we need to have a right thing and goes out to vote, we We believe until this Government Federal minimum wage increase. The ought to say they are going to have a and this administration have the polit- majority of workers on minimum wage consistent law, a consistent standard ical will to represent the American are women, and the majority of those applied to them, whether they live in consumers and bring prices down, we are women raising small families in a Ohio, Illinois, Florida, Nevada, or the

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00009 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S116 CONGRESSIONAL RECORD — SENATE January 24, 2005 State of Washington. I think that is school. You want to own your future? for everyone covered by Social Secu- something we can do and should do. Then you need to have leadership at rity to similarly participate in funds Madam President, how much time do the Federal, State, and local level to that are part of the general stock mar- I have remaining? give you the chance to borrow the ket, part of the general investments of The PRESIDING OFFICER. Six min- money. the United States. So many investors utes. What about your pension that you now in our country participate in that Mr. DURBIN. I thank the Chair. spend a lifetime paying into, believing way. Madam President, I would like to you own that? That is not Government. f close on this note: There is a lot of dis- I own that. And then the company dis- cussion here, starting with the Presi- appears or walks away from its obliga- ORDER OF BUSINESS dent’s inaugural, about the whole con- tion to you. What fighting chance do Mr. STEVENS. Madam President, if cept of an ownership society. I think you have? None, unless there is a law there is no further business to come on this is going to be the driving philos- that protects you and an agency that this side—and I do not think there is— ophy and the driving political force be- will enforce that law. I yield back the remainder of our time hind the Republican agenda. The con- So when you hear this alluring pros- and ask for the regular order. cept is alluring because the concept pect of an ownership society, under- The PRESIDING OFFICER. Is there says: Wouldn’t you want to control stand we value individual freedom on objection? your own future? Wouldn’t you like to both sides of the aisle, but we also un- Mr. DURBIN. Madam President, I own your future as opposed to depend- derstand that in many instances the yield back the remaining time on our ing on the Government? You cannot be strength of our Nation is when we side. certain that Congress and the Govern- stand together—for fairness when it ment will come through for you. So comes to health care, for opportunity f wouldn’t you rather own your own fu- when it comes to education, to have CONCLUSION OF MORNING ture? protection when it comes to your pen- BUSINESS Boy, that has a lot of appeal, particu- sion and your future. The PRESIDING OFFICER. Morning larly to young people who feel invin- We need a balance. Walking away business is closed. cible, that just given a chance: Let me from Government, as an evil entity, is take the money, let me invest for my ignoring the fact that Government, in f future, let me make these decisions. many instances, is just the American EXECUTIVE SESSION That is not a bad quality. It is an inde- family at large. As my wife and I care pendence that we encourage in individ- for our children, we care for others in uals, and it is certainly one that I sup- this country and those who are short- NOMINATION OF CARLOS M. port. But we should not overlook the changed by this system and who are GUTIERREZ TO BE SECRETARY obvious. not protected. Even if it does not affect OF COMMERCE At the heart of the ownership society me directly and personally, it affects is the basic belief that we should just this country, and it affects my future. The PRESIDING OFFICER. Under remember that when it comes to Amer- So I hope we can find some balance. the previous order, the hour of 3 ica, we are all in this alone. I do not I hope, when it is all said and done, we o’clock having arrived, the Senate will think that is true. I think history tells do not get so caught up in this alluring proceed to executive session for consid- us that standing alone there are some notion of the ownership society that eration of Executive Calendar No. 1, things we can do but other things we we forget, as we are learning with our which the clerk will report. cannot do. military, we have learned in our his- The legislative clerk read the nomi- If you want to be successful in Amer- tory, there are times when we need to nation of Carlos M. Gutierrez, of Michi- ica, you need good health. Can you con- stand together as a nation for fairness gan, to be Secretary of Commerce. trol your own fate when it comes to and for justice. We say here is security, The PRESIDING OFFICER. Under health care? Only if the system treats opportunity, and making certain peo- the previous order, there will be 2 you fairly. If you happen to be some- ple have responsibility in their actions. hours of debate on the nomination, body with a preexisting condition and Madam President, I yield the floor. with 1 hour of debate under the control no insurance company will offer you The PRESIDING OFFICER. Who of the Senator from Alaska, and 1 hour coverage, you are not likely to be yields time? of debate under the control of the Sen- treated fairly. If you happen to be one The Senator from Alaska is recog- ator from North Dakota. who comes from a family with some nized. The Senator from Alaska. history of mental illness, you will find Mr. STEVENS. Madam President, Mr. STEVENS. Madam President, it rank discrimination by hospitalization our time is almost up. is my intention to make a statement insurance companies right now. I am delighted to have heard the presenting the nominee’s qualifications The point I am making is this: We comments of the Senator from Illinois. and the consideration the Commerce have decided that to make certain peo- I remember so well when we faced the Committee gave to this nomination, to ple have a chance in America to suc- problem of dealing with Federal em- be followed by time that I will yield to ceed when it comes to health care, ployees back in the 1980s. We deter- the Senator from Hawaii, Mr. INOUYE. I there will be rules of the game, there mined that a thrift plan was necessary. hope that will be acceptable to Senator will be laws in States, and laws in the We encouraged members of the Federal DORGAN. His time would start following Federal Government and agencies to employee workforce to set aside a por- Senator INOUYE’s time, who I under- enforce them. Ownership? Yes. To have tion of their income. For every $2 they stand is on the way to the Chamber. ownership of your future, you need set aside, the Federal Government This was the first nomination that good health care. To have good health agreed to match it with $1. came before the Commerce Committee care, you need to have a government I think this thrift plan has proved to after I became chairman. President standing behind you and protecting be a decisive factor in maintaining the Bush nominated Mr. Carlos Gutierrez your right to fair treatment when it employment of key employees because to be Secretary of Commerce on No- comes to health care. it gave them a chance to reach out and vember 29, 2004. Mr. Gutierrez is the How about education? Do you want be part of the general economy, to in- chairman and chief executive officer of to go it alone with the ownership soci- vest in the issues that were covered by the Kellogg Company, a major food ety? Well, you may need a Pell grant to the thrift plan management group. I do products company based in Battle get through school. I borrowed money believe it has been a successful ven- Creek, MI. The incredible story of how from the National Defense Education ture. he got there, rising through the ranks, Act to get through college and law I hope the exploration we make of is a testament to the American spirit. school. Students find, over and over the President’s suggestion leads to a Shortly after Fidel Castro assumed again, were it not for Government pro- similar type of circumstance, to a power in Cuba during the Communist grams, they might not be able to go to similar development of the opportunity revolution, Carlos Gutierrez and his

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With a lot of hard work, 10 years On January 5, Senator INOUYE and I I urge my colleagues to support the later, he was general manager of held a hearing in the Commerce Com- confirmation of Mr. Carlos Gutierrez to Kellogg’s Mexico division. Fifteen mittee on this nomination. Mr. Gutier- serve as Secretary of Commerce. years after that, he was running the rez answered a variety of questions at I yield the floor. whole company. It is a great American the hearing and has since responded to Mr. STEVENS. Madam President, I success story by any measure. many more written questions. The next yield such time to the Senator from Mr. Gutierrez’s nomination comes be- day, the committee voted unanimously Montana as he may desire to use. fore the Senate at a time of significant to report this nomination to the full The PRESIDING OFFICER. The Sen- change in the American economy. The Senate. I am here today to recommend ator from Montana. Mr. BURNS. I thank the chairman of shock of September 11, 2001, a series of the Senate’s quick confirmation of this corporate scandals, and the spending the Commerce Committee. I rise in nomination. pressure of the war on terror, including strong support of Carlos Gutierrez as I thank Mr. Gutierrez for his willing- the Iraq conflict, have taken their toll. the next Secretary of Commerce. I ap- ness to serve our Nation and the De- However, the President’s economic plaud the President for this choice for partment of Commerce, and I join in stimulus program, centered around tax many reasons. Not only is he a classic relief, is helping our economy turn the congratulating the President on this American success story, as we have corner. The economy has created more fine nomination. heard from Senators Inouye and Ste- Mr. Gutierrez has my strong support, than 2.4 million new jobs since August vens, but he is an example for all the of 2003—15 straight months of job gains. and I do urge the Senate to vote to opportunities that are afforded to The unemployment rate is at 5.4 per- confirm this nomination as quickly as Americans. cent, down from 6.3 percent last June, possible. I am especially happy to see the and is below the average of the 1970s, Madam President, I suggest the ab- President chose someone from a manu- 1980s, and 1990s. After-tax income has sence of a quorum. facturing background. He also has a risen more than 10 percent since the The PRESIDING OFFICER. The background on the ground, so to speak. end of 2000, and household wealth is clerk will call the roll. It is something to manufacture a prod- now at an all-time high. Even the The legislative clerk proceeded to uct; it is also something to sell the stock market has shown strong gains call the roll. product because we live in an economic Mr. INOUYE. Madam President, I ask in recent months. system where nothing happens until a Secretaries of Commerce spend much unanimous consent that the order for sale is made. Mr. Gutierrez under- of their time promoting American the quorum call be rescinded. stands both ends of that equation. business at home and abroad. If con- The PRESIDING OFFICER. Without For a long time, and since I have firmed, Mr. Gutierrez will have an im- objection, it is so ordered. been here, this is the first Secretary of pressive record of growth at his dis- Mr. INOUYE. Madam President, I ask Commerce who has an agribusiness posal. unanimous consent to speak for 4 min- background. Everything the Kellogg There is much more to the Depart- utes. Company does starts in the ground. I ment of Commerce than representing The PRESIDING OFFICER. Without am especially happy about that. I America’s economic interests. Most of objection, it is so ordered. would hope we could work together. I the Department’s budget is devoted to Mr. INOUYE. Madam President, I have always said there is nothing the National Oceanic and Atmospheric rise in support of the confirmation of wrong on the farm except we just don’t Administration. NOAA’s role in pre- Mr. Carlos Gutierrez to serve as our get as much of the consumer dollar as dicting tsunamis was not well known Nation’s Secretary of Commerce. As we used to. We are going to work on outside of the Pacific coastal States Secretary of the Department of Com- that kind of situation. before last month’s devastating tsu- merce, Mr. Gutierrez will take over the The Commerce Committee oversees nami in Asia. The administration re- helm of a very diverse department, for some of the most important and con- cently announced a strong proposal to example, responsible for counting fish troversial issues that challenge this improve detection and response to tsu- as well as people, predicting the weath- country and my State of Montana. nami events along the U.S. coast. er, developing and promoting stand- With his commitment—I have yet to NOAA will be the lead in this critical ards, technology, and promoting fair meet the man, but we have had an ex- endeavor. trade. This is a very difficult and com- tended telephone call—to work with Mr. Gutierrez has probably already plex appointment, but I believe Mr. Congress on these issues, his quick re- learned more about fisheries than he GUTIERREZ’s impressive background sponse to the questions I sent to him, ever expected. If confirmed, he will and experience will serve him well in and the things he is going to be doing learn much more. The recent report of this position. at Commerce, will put him in a posi- the U.S. Commission on Ocean Policy He was born in Cuba. Mr. Gutierrez tion to assist many sectors of our econ- reaffirms the important role that do- left Havana in 1960, shortly after Fidel omy. I would like to take a few mo- mestic fisheries play in our society. Castro took power. Although he has no ments and highlight some of them and Fisheries create jobs in rural commu- college degree, through hard work and where these issues will be discussed nities and provide valuable protein in perseverance, he rose from delivering prominently in the upcoming session. the world’s food supply. The report of corn flakes to small stores in Mexico Let’s start with one that affects my that commission highlighted the need City to the moment when he took over State, the timber industry and to manage all fisheries in a sustain- Kellogg’s cereal and convenience food softwood lumber. Small mill operators able, regional manner. And that is ex- empire. in Montana rely on effective enforce- actly what has taken place in the State While at Kellogg, he revitalized the ment of U.S. trade laws, particularly that the occupant of the Chair and I company and put it on a new path of against unfair trade acts, such as we have the honor to represent. Our State, success. Mr. Gutierrez will face a vari- have seen coming out of Canada. It is with half the coastline of the United ety of demanding challenges during his important that the Commerce Depart- States, has led in developing new poli- tenure. But few are greater than ad- ment ensures full enforcement of the cies to protect and preserve the repro- dressing the administration’s current trade laws in the softwood lumber sec- ductive capability of the fisheries off record on trade. Just this month, our tor, including selection of accurate our shore. trade deficit hit an astounding and rec- subsidy measurement benchmarks. The I commend the President for his Ex- ordbreaking $60.3 billion, and I am cer- 911 implementation was critical legis- ecutive order creating a Committee on tain that all of us will agree that this lation. The enhanced 911 bill that

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I said then it is try jobs and operations, including of Internet stakeholders everywhere. probably the best step that we have small mill operators in Montana, rely The U.S. Government has played a taken in public safety in a long time. on effective enforcement of U.S. trade crucial and positive role in the cre- These grants will be administered by a laws, particularly against unfair Cana- ation of the Internet and in Internet joint program office run by the Depart- dian lumber imports. In evaluating the governance, and I do not think that ment of Commerce and the Department extent of Canadian timber subsidies, such a decision as this should be taken of Transportation. Basically, what it for example, it is imperative that the without thorough review and under- is, on your cell phone, you dial 911 to Commerce Department ascertain the standing of its implications. I hope get emergency. Many years ago, that true market value of Canadian timber that Secretary Gutierrez will take the call did not know where to go. It could in comparison to timber pricing data initiative to understand this vital issue have gone anywhere. Today, it goes to that reflects full value. It is important and consult with Congress closely on it the nearest first responder or commu- the Department ensures full enforce- in the coming years. nications center, no matter where you ment of the trade laws in the softwood Finally, I would like to voice my sup- are in the country. They can also lo- lumber sector, including selection of port for the Hollings Manufacturing cate you. accurate subsidy-measurement bench- Extension Partnership which is admin- ICANN reform. I am concerned about marks. Mr. Gutierrez has indicated his istered at the Department of Com- the organization that manages the support of full enforcement of trade merce. Montana is a rural State but we Internet critical domain system. laws in the softwood lumber sector and have needs and opportunities that the ICANN is falling victim to a little bit I applaud that support. Hollings Manufacturing Extension of a mission creep, turning into a mini- Mr. President, during my time as the Partnership has addressed. In recent international organization. ICANN Chairman of the Communications Sub- years, I have grown concerned for the should retain its focus on technical co- committee, I made it a priority to programs advancement, but I am hope- ordination, which makes me all the move forward and implement the de- ful Mr. Gutierrez, with his manufac- more concerned that the Department ployment of universal broadband. turing background, will see the impor- of Commerce plans to abandon all over- Along with my colleague Senator JAY tant role the program plays in small sight of ICANN next year. I urge the ROCKEFELLER we have pushed for legis- States. It is important the Department Secretary to review that issue closely lation that would allow for broadband ensures small manufacturers have ac- cess to technical and information re- and get back to Congress. expensing. As you may know, Our Nation’s spectrum policy re- broadband expensing would allow com- sources to allow them to remain com- mains outdated, and I look forward to panies to accelerate depreciation of petitive. Again, I would like to reiterate my working with the Secretary in reform- capital-intensive broadband equip- support of Mr. Gutierrez’ nomination ing that to keep pace with the commu- ment. I am hopeful the Department and I look forward to working with nications revolution. Broadband ex- will provide assistance in passing this him on many of the challenges my pensing; the Hollings manufacturing legislation as part of the President’s State and the country are faced with extension partnership program; it is vast broadband vision. under the vast umbrella of the Depart- important that these programs move I also would urge the Secretary to de- vote his personal attention to an im- ment of Commerce. forward, with a good deal of interest I yield the floor and thank the chair- coming from his Department. portant issue regarding the future of the Internet. I am referring to the se- man of the Commerce Committee for Again, I want to reiterate my support giving me this time. curity of the Domain Name System, for Mr. Gutierrez’s nomination. I look Mr. STEVENS. Mr. President, we which is what ensures that each forward to working with him on many have no further speakers on this side. I of the challenges that my State and website address in the Internet resolves reserve the remainder of our time. this country face under a vast umbrella to a unique website reliably and se- The PRESIDING OFFICER (Mr. called the Department of Commerce. curely. It is vital for the future of e- VITTER). The Senator from North Da- That is what makes our committee commerce, and those parts of the econ- kota is recognized. probably one of the most exciting com- omy that increasingly depend on it, Mr. DORGAN. Mr. President, it is my mittees of any that operates in the that this process work flawlessly. Dur- intention to support the nomination of Senate. I heartily support his nomina- ing the Clinton administration, a pri- Mr. Gutierrez to be the Secretary of tion. He should be confirmed. vate non-profit company known as the Commerce, an important position in Mr. President, again, I applaud the Internet Corporation for Assigned this administration and for our coun- President for his choice. Mr. Gutierrez Names and Numbers, or ICANN, was es- try’s economic well-being. However, certainly has a classic American suc- tablished to oversee the real technical before I do, I want to call the attention cess story and can be looked at as an challenges associated with managing of the Senate to some important example of how great our country real- the Domain Name System during a issues. ly is and the opportunities it presents. time of explosive growth and political I come to the floor to speak at some I am especially happy to see the challenges. length about a very serious problem: President has chosen someone with a However, I am concerned, and I know the burgeoning U.S. trade deficit. This manufacturing background. I believe some of my colleagues are as well, that is a deficit that fundamentally weak- Mr. Gutierrez’s tenure at the Kellogg ICANN may fall victim to ‘‘mission ens this country, a trade deficit that Company will bring an important in- creep’’ in this case, the tendency for it last month alone was $60 billion, a sight to the Department in an area to turn into a mini-international orga- trade deficit that will be something that certainly needs attention. nization, and all the political baggage over $600 billion for the year 2004, when The Department of Commerce over- that comes with that. If so, ICANN’s we finally get the year-end numbers. sees some of the most important and actions could potentially go well be- Despite this growing crisis in inter- controversial issues that challenge my yond the narrow technical mandate national trade, the Congress, the Presi- State of Montana. I appreciate Mr. that was envisioned for it at its cre- dent, and virtually all of the official Gutierrez’s commitment to working ation. ICANN currently is subject to an Government, seems to be willing to with Congress on these issues, and his agreement with the Commerce Depart- snore through all of this and pretend it quick response to my questions fol- ment, and I am concerned that not does not exist. lowing his hearing in the Senate Com- enough high-level attention in the De- I think it is fitting that we discuss merce Committee. partment gets paid to this issue espe- this at some length at a time when we Mr. Gutierrez will soon be in the po- cially since, as I understand it, the De- are putting a new Commerce Secretary sition to assist many important sectors partment of Commerce plans to aban- in place.

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In my judgment, we ought to as- ing periods of slow economic growth we He proposes to create private accounts pire in this Congress to be working to- will have 7 percent annual return on in the Social Security system, because ward Social Security-plus, not Social private accounts. It doesn’t work that he says there is a crisis in Social Secu- Security-minus. Those who say the way. Third-grade math will tell you rity. Well, there is not a crisis in So- way to build retirement security is to that is fundamentally wrong. cial Security. Let me make it clear. injure the foundation, or begin to take My hope is we will have a thoughtful, There is no crisis in Social Security. If away the foundation that is Social Se- interesting debate about retirement se- we have the same economic growth curity insurance, do no favor to senior curity and about Social Security. I rates in the next 75 years that we had citizens. The way for us to enhance and hope at the end of that debate, we will in the past 75 years, Social Security embrace and strengthen retirement se- all agree that we should do nothing to will be just fine. curity is to build on the first, second, undermine Social Security. If we be- The only way there is a crisis in So- and third floors, not destroy the foun- lieve that there is nothing more impor- cial Security—or you can at least cre- dation. tant than our children and taking care ate the impression that there is a cri- Once again, there is no crisis in So- of them, and nothing more important sis—is if you attempt to project growth cial Security. Let me be the first to than taking care of our parents when rates that are dramatically lower than say that we are living longer, healthier they are elderly, we ought to protect that which we have experienced. If you lives, and so the problems that might the social safety net that promotes are going to project lower economic occur 20, 40, 60 years from now in So- those values. growth rates—1.8 percent, for exam- cial Security are born of success. We Social Security has lifted so many in ple—over the coming years, then you are living longer, healthier lives. And this country out of poverty. It has cannot predict that somehow investing if you are a pessimist and believe we worked for 70 years and it will work for money in the stock market through will have only 1.8 percent economic the next 70 years and well beyond. I for private accounts is going to solve any growth rates, which is what the basis is one am not interested in taking apart kind of problem. for suggesting there is a huge problem that which works and which makes It is interesting to me that the ethic in Social Security—if you are a pes- this a better place to live. After all, and value system in America has been simist, then you can suggest there need those who gave us what we now have in that if you are going to provide for to be adjustments in Social Security. this country, who went before us and your future, you save for retirement. But that cannot be a pretext for taking helped build this country, built our The President is suggesting that we apart the Social Security system. That communities, factories, and our should borrow $1 trillion to $3 trillion is what some wish to do. They never schools, and helped increase the stand- and dump it in the stock market and liked it, don’t like it now, and want to ard of living, expanded opportunities hope things will be all right. Even as take it apart. How? They want to cre- for our country—those are the people we do that, the amendment leaked ate private investment accounts inside from whom we have inherited this from the White House says we will cut the Social Security system, which is a great life. If we have decided somehow that we Social Security benefits by changing big wet kiss to Wall Street to move don’t have the wherewithal to continue the adjustment on wages and prices. money that is borrowed to Wall Street to make this Social Security system The construct is this: Claim there is a and hope that somehow the social pro- work for them, to keep it a promise crisis where there is not, and borrow $1 gram will be solvent. they can count on, then there is some- We have already had substantial ex- trillion to $3 trillion and put it into the thing wrong with the value system of perience in the last several years with stock market at the same time you cut this Congress. I don’t believe that to be economic projections by the people Social Security benefits. the case. I think at the end of the day In my judgment, that is a bad policy, telling us this will work. They inher- we will all agree Social Security is a one we ought to resist. It is important ited the largest budget surplus in the value that is important, one we will for people to understand the Social Se- history of this country and we now strengthen and keep. curity system is not an investment have the largest budget deficit in his- Enhancing retirement security is im- program; it has never been that. It was tory. They didn’t see it coming. They portant as well and, at the end of the created in the 1930s and signed into law said, by the way, let’s count these 10 day, we ought to have what is called by Franklin Delano Roosevelt to help years of surplus before they exist and Social Security-plus. We can do Social the elderly escape the plague of a pov- give them back in tax cuts. Some of us Security, keep it strong in the long erty-ridden old age. When he signed said maybe we ought to be more con- term, and build further incentives for that bill, 50 percent of America’s senior servative. These surpluses don’t yet IRAs, 401(k)s, and pension programs. citizens were living in poverty. Now it exist. The President said never mind, That ought to be our mission state- is less than 10 percent. But it is not Katy bar the door, give all these mon- ment. now and has never been an investment eys back even though they have not Let me turn back now to the issue of program. It is a core insurance retire- been realized; give them back in tax international trade. We have before us ment program. It is the foundation of cuts. the nominee for the U.S. Department retirement security. It is always there, The fact is we turned the largest of Commerce. That is one of the agen- not subject to risk. It is core retire- budget surplus into the largest budget cies in our country that deals with ment insurance. In fact, if you look at deficit in history. The same people who trade issues. your paycheck, it says the money that predicted success for economic failure Mr. Gutierrez, President Bush’s se- comes out of your paycheck for this are the people telling us we ought to lection to head the Department, is program is FICA. The ‘‘i’’ in the FICA take apart the Social Security program someone whom I will support today. is for insurance. under the guise of there being a crisis. But I don’t want this moment to pass The President wants to confuse us by Let me make one additional point without all of us having to confront talking about investments. We have a that I think is very important. Those something that is very uncomfortable Social Security program that is a core who tell us that we will have only 1.8 for this country, and that is we have a retirement insurance program. It has percent economic growth for the next trade policy that is weakening America worked well for over 70 years. It lifted 75 years, and therefore we have a fi- and that is in fact a ‘‘crisis.’’ I de- the hopes and lives of so many tens of nancing problem with Social Security, scribed where the crisis doesn’t exist, millions of senior citizens out of pov- also say that private accounts in So- in Social Security; but there is a bona erty. cial Security invested in the stock fide crisis in international trade. We have also, under the rubric of re- market will yield 7 percent. Therefore, Last month, we heard a report that tirement incentives, created 401(k) pro- it will fix the problem. Double-entry we had a $60 billion trade deficit—just

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00013 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S120 CONGRESSIONAL RECORD — SENATE January 24, 2005 last month alone, $60 billion. We are vanced degrees. And yet they close a labor force will be larger than 3 million told that we should expect, when all of door somewhere in a private room, by 2010, and half the workers will be last year’s numbers are in, that our someplace in secret, and reach a deal performing jobs for U.S. companies. trade deficit will top $600 billion. Add that says to the Chinese: on bilateral Let’s talk for a moment about that: to that the budget deficit of over $400 automobile trade, you go ahead and these information technology jobs that billion, and we have a combined indebt- impose a tariff 10 times the tariff we are being outsourced to India are good edness of over $1 trillion in this past will impose on automobiles between jobs. But there are some who think year alone—$1 trillion. Talk about China and the United States. that this outsourcing is a good thing. being irresponsible with our kids’ fu- Guess what. We sell very few cars in In fact, the President’s economic re- ture. This is it. Yet, do you hear any- China. We cannot get them in, and the port to Congress said that, for example, body talking about the urgency of this? Chinese, having apparently stolen the having Indian radiologists reading x Not a word. Not a whisper. It is like designs on a new compact car from rays of U.S. patients would be a good shouting into a strong wind to talk General Motors, are set to send us a thing. about trade. quarter of a million cars. What will happen to the 1.5 million Well, let’s talk about some of the Should we perhaps find out who nego- Americans who will lose their jobs in issues related to this soaring trade def- tiates this sort of incompetence so we information technology services to the icit. I am going to go through a series make sure they never again negotiate country of India? of examples. on behalf of our country because this is Well, one thing they will not be doing The January 10 edition of Time Mag- not some theory? is producing merchandise for export to azine had an interesting article in it. It This is about jobs. When you do this, India. In 2003, we had a trade deficit says: it means you are reducing America’s with India. That same year the average duty, the average tariff on goods that Chinese pirate companies have long been job base and enhancing the job base in accused of illegally copying easy stuff like other countries. we were to sell to India was 30 percent. shoe polish and digital movies. Now General On a related note, in a recent year, According to the U.S. trade ambas- Motors says a Chinese firm knocked off an we saw 690,000 Korean automobiles sador’s office, India’s economy is one of entire vehicle—and Americans could soon come to the United States to be sold in the most closed in the world and, thus, start buying its cars. the United States. Guess how many India’s tariffs remain among the high- So let’s talk about that a bit. It is re- American cars we sold in Korea? We est in the world. ported that a Chinese firm, called sold 3,800. So Korea sent us 690,000, and Now the trade ambassador’s office Chery, has stolen production line blue- we sold them 3,800. says the Indian economy has the most prints for a GM compact car called the There was a time during this period potential for U.S. exports. I expect that Chevrolet Spark. It is a car that Gen- when Korean consumers seemed to is true, because India has 1 billion peo- eral Motors spent hundreds of billions want to buy a pickup truck called the ple. One out of six consumers on the of dollars to develop and the copy car Dodge Dakota. Several dozen orders for planet lives in India. It is the second is called QQ. It looks like an identical Dodge Dakota trucks were coming into most populous nation in the world. Yet twin to the Spark. The Chinese com- Dodge dealers in Korea. Guess what. where does it list on the U.S. export pany is now offering it for sale in China The Korean government decided to an- markets? Second, 5th, 10th, 15th, 20th? No, 24th. for $3,600, a third less than the General nounce that the Dodge Dakota wasn’t In fact, we export nearly twice as Motors car. safe, because it was capable of having a much to Peru as we export to India. Chery, the automobile company in topper installed in the back, and that And yet we see all of these reports now China, has now announced plans to sell wasn’t customary in Korea. So they did about American jobs being sent to five different models, including a sport a big splashy announcement, and be- India. Apparently, the only thing we utility vehicle, in the U.S. It teamed fore you knew it, all the orders were can send to India are jobs, not goods. up, apparently, with Malcolm Bricklin, cancelled. Korean consumers got the India has a 105-percent tariff on cars who brought the Subaru to America in message. and motorcycles—in fact, we cannot the 1960s. Their plan is to import up to So in Korea they want to sell their get motorcycles into India—40 percent a quarter of a million Cherys a year cars in the American marketplace, but on oranges, over 100 percent on raisins, starting in 2007. The Chinese want to they do not want our cars sold in 30 percent on soybeans, 100 percent on send us a quarter million Chinese cars Korea. Will we say to the Koreans or durum wheat. in a year. the Chinese, for that matter, that ei- You know, you can’t have balanced Well, what to make of that? Let me ther your market is open to our prod- trade these days, even if you want it. describe a trade agreement that our ucts, or you are going to have to see A family in Illinois this year decided country made with China a while back. your products in Zambia or Nigeria? I to do something different for Christ- We had a bilateral trade agreement don’t think so because our country mas. They decided they were going to with China. This is a country that had does not have the nerve, strength, will, ban China from under their Christmas a large surplus with us. Our nego- or backbone to stand up for America’s tree. The mother decided that she was tiators negotiated a deal with China. economic interests, for American going to buy U.S.-made Christmas Inexplicably, they agreed to this. They workers, American businesses, and gifts. Peggy and Dave Smedley were negotiated a deal where the Chinese American jobs. going to buy American for Christmas. can impose a 25 percent tariff on any I want just one Member of Congress, Of course, that meant no iPods, no United States cars we ship to China. in the House or Senate, to justify this digital cameras, no tabletop football But on any Chinese cars sent to the to me—just one. Or to justify the cir- games. And in the end, it was nearly United States, we impose only a 2.5- cumstances of mutual automobile impossible for them to find the Christ- percent tariff. So our negotiators said trade with China by which we agreed mas gifts they wanted for their chil- to a country with which we have a with China that we will allow them to dren. They found a Monopoly board giant trade deficit: We will agree with impose a tariff that is 10 times ours on game that appeared to be made in the you that you can impose a tariff on bi- bilateral automobile trade. Just one U.S. but they discovered the dice actu- lateral automobile trade that is 10 person I would like to stand up and ally came from China. Their son want- times higher than that we will agree to say: Yes, that makes sense. We know it ed American-made boots, and Peggy impose: 2.5 percent on Chinese cars doesn’t make sense. We know it under- Smedley looked in 30 stores for boots coming into our country, 25 percent on cuts American workers. It moves that were made in America before giv- U.S. cars that we try to sell in China. American jobs overseas, and yet no one ing up. The Smedley kids were con- You ask yourself: Who on Earth seems to care very much about it. cerned they might not get any presents would have done that? I don’t have the Here is another item in the news. at all for Christmas because of their foggiest idea. Our trade negotiators did There is a new report that talks about mom and dad deciding they wanted to it. They apparently wear blue suits, the export of jobs from this country to buy American. they have tiny little glasses, they are India. AMR Research estimates that The 13-year-old Smedley son said he supposed to think, probably have ad- the Indian information technology did not know what to expect because ‘‘I

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00014 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S121 have never bought American before,’’ mean to the world’s strongest econ- that they were upset about the fact. which I suppose is an innocent com- omy? What does it mean when one hol- They were a little huffy, as the saying ment from a 13-year-old kid about the lows out the manufacturing base of a would go, about my discussion. world in which we live. country such as the United States? In Ohio, workers used to make Huffy Levis used to be all American. They What does it mean when we say to bicycles. In fact, Huffy bicycles had a are gone. In fact, I am told that the American workers that there is a new little decal of the American flag. Levis Company does not make any day and a new competition, when we I do not know any of those folks but Levis anymore. The Levis Company say to the American workers, yes, for a my guess is that they loved their jobs. makes no Levis. All the Levis are made century they fought for rights, some They made a great bicycle. They had 20 under contract by contractors. lost their lives in the streets of this percent of the bicycle market in Amer- The Christian Science Monitor re- country fighting for the right to orga- ica. People could buy them at Sears, ported the other day something else nize; they fought for the right to work Wal-Mart, Kmart. I am sure that one that I thought was kind of interesting. in a safe workplace; the American peo- day when they had to go home and tell One would have thought when they ple fought for the right to understand their spouse, honey, I have lost my job, walked around with a pair of cowboy that corporations and factories would that it was a painful day. They had to tell their spouse and their families: I boots that they were walking in an all- not pump effluents and poisons into lost this job not because I was a bad American pair of shoes, but last month the air and water; we fought for child worker—I worked for 20 years for this I noticed in the Christian Science Mon- labor laws so 12-year-olds would not be company; I did a good job; I produced a itor even the cowboy boots now sport sent down into the mines or into the ‘‘made in China.’’ Tony Lamas, top of good product—but I lost my job be- factories? What does it mean when we cause my company discovered they the line cowboy boots, inside the label are told it is a new day and none of could hire somebody for 33 cents an it may read ‘‘made in China.’’ Thirty- those things matter because those who hour to build that bicycle. five to 40 percent of these cowboy boots produce can produce elsewhere where Incidentally, that bicycle took the have now been outsourced. no restrictions like that apply? American flag off the front decal and I have spoken often of Fig Newton A kid can be hired and he can be replaced it with a decal of the globe cookies. It used to be that Fig Newton worked 7 days a week and paid pennies. once they moved production to China. was the all-American cookie. Well, And it is said to the American worker, What does all of that mean? What next time somebody says, let us have you must compete with that, and if does it mean for our country? We are some Mexican food, just say, give me a you cannot compete, we are going to running giant trade deficits with vir- Fig Newton, from Monterey, Mexico. outsource, and if you do not like tually everyone in the world: China, By the way, Kraft Foods moved the outsourcing, tough luck. huge trade deficits. This map shows the production of Fig Newton cookies to I am just wondering how all of this world, and it shows in red the countries Monterey, Mexico. So eat a Fig Newton adds up. This country has been a won- with which we run trade deficits. It is and you are eating Mexican food. derful country because going all the unbelievable. Here is the United Fruit of the Loom used to be all- way back to when Henry Ford made States. Of course we can’t run a deficit American underwear but not any the Model T he understood that pro- with ourselves. We are running a sur- longer. They are gone. Levis are gone. duction needs customers. Even as he plus with Australia down here. We will Huffy Bicycles are gone. Schwinn Bicy- produced, he was hiring workers and probably fix that soon, as soon as the cles are gone. Little Red Wagon Radio saying: I want to give workers a decent new trade agreement with Australia Flier is gone. They were all American, income with which they can purchase kicks in, because in almost every case, all made by Americans, all represented that which we are producing. He under- every trade agreement we have done jobs for American families, and they stood he was employing his own cus- turned out badly for this country be- are all gone. tomers. cause we don’t have the backbone to Why is all of this happening? Well, Now we have a different set of cir- stand up for the interests of our pro- what has happened is multinational cumstances in our country. Now we ducers. corporations have discovered there are have products made by child labor, in Australia, Egypt, Belarus—hey, look, somewhere around a billion people countries that pollute their environ- we have a bright spot over here in available on this globe who work for a ment, and we are asked to compete Belarus—these are among the very few very small amount of money. There is with that. After 9/11, when there was a countries with whom we have a deficit. someone in Indonesia today who is surge of demand for American flags, do With almost the entire world we are making a pair of shoes. There is 24 you know where they came from? From running very large trade deficits; vir- cents direct labor in that pair of shoes overseas. The import of American flags tually the entire world. that will be sold in Pittsburgh, Fargo, jumped to 113 million American flags How long will that last? Mexico is a or Los Angeles for $80 a pair, and that in a year. And I bet you that many of good example. We had a trade surplus woman named Shadisha is going to be those flags were made in conditions with Mexico—a small one, but a trade paid 24 to 30 cents an hour. that would gravely offend the prin- surplus. Then we did what was called There is someone in China today who ciples that the flag represents. the North American Free Trade Agree- is making Huffy bicycles. That man or I will put up a chart that shows the ment, and this chart shows what hap- woman took the job of someone in Ohio growth of the trade deficits over recent pened. Right here is the trade surplus. who was making $11 an hour, plus bene- years, because it describes what this is Then we did a North American Free fits. They got fired. They lost their all about. Year after year, we see these Trade Agreement. We had a bunch of jobs because the Huffy bicycles were trade deficits growing and growing. It these economists, who cannot tell their moved to China and now workers in is as if it does not matter. Nobody here home address and can’t remember their China are paid 33 cents an hour. They cares. Nobody here has lost their job phone numbers, give us all kind of work 7 days a week, 12 to 14 hours a because of these numbers. There is not highfalutin’ predictions about what is day making Huffy bicycles. one politician in America who has lost going to happen. They said this is The Little Red Wagon Radio Flier their job to outsourcing. There is not going to be good for America; the only Wagon that has been made in American one journalist who has lost their job to thing that will come into this country for over a century is gone. It is because outsourcing of which I am aware. So it from Mexico with this trade agreement corporations have discovered there are is as if it does not exist. It is just the is the product of low-skilled, low-wage a billion people who will work for very other people who lose their jobs. It is jobs. Guess what. The three largest im- little money. In some cases, they em- people who take a shower after work ports into America are automobiles, ploy 12-year-olds. They work 12 hours a because they sweat all day at work automobile parts, and electronics, all day. They pay them 12 cents an hour. If working long and hard on the factory the product of high-skilled jobs, ex- my colleagues do not believe it, I can floor and they are told somehow they actly the opposite of what these so- show them. cannot make it. called economic experts told us. The question is, What does all that I have talked about Huffy bicycles. I In the meantime, what happened mean to our country? What does it received a letter from the Huffy folks with our trade with Mexico? We have a

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00015 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S122 CONGRESSIONAL RECORD — SENATE January 24, 2005 giant trade deficit, serious and grow- We had roughly a $130 billion deficit or should be linked to competition ing. with China previously. It is probably with those in other parts of the world Canada is another example. With re- $160 to $170 billion just in the last year. who can produce in circumstances spect to Canada, which was part of Yet we have only 19 people in the De- where they pollute the air and water, NAFTA as well, the trade deficit was a partment whose job it is to enforce hire children, pay pennies, and work in modest trade deficit when we started. trade agreements with China. unsafe plants. That is why on trade Now it has grown into a very substan- We have a $66 billion trade deficit agreements we have fought on the floor tial trade deficit. with Japan. There are only 10 people in of the Senate to add provisions dealing The trade deficit with China is a dra- the Commerce Department working on with environment and labor, and we matic trade deficit and it is growing opening up trade markets in Japan. have been rebuffed at every cir- much worse. I just described part of the We have a $13 billion trade deficit cumstance and at every turn. We are problem with China. You can see what with Korea. There are 23⁄4 people—I seeing the results of that now—day is happening here to this country. don’t know who the three-quarters of a after day after day. You can make a case, if you are an person is—working to open up the Ko- I want to talk just for a moment economist, that the budget deficit is rean market. about something else that Mr. Gutier- money we owe to ourselves. You can Our deficit with the European Union rez will inherit at the Commerce De- make that case. You can’t make that is $77 billion. There are only 15 people partment. I know it is not quite the case with the trade deficit. The trade working to open up the European mar- important issue that China, the Euro- deficit is a deficit we owe to others in kets. It is unbelievable. pean Union, Mexico, Canada, and Korea other parts of the world and will be As I have said, we fought for a cen- are with respect to trade, but I want to paid inevitably with a lower standing tury about the basic conditions of pro- talk for a moment about Cuba. of living in this country. It will. You duction and the basic rights of work- Cuba is 90 miles off our shores. It is cannot make any other case. That is ers. We now accept into this country a Communist country. The fact is, we why I come to the floor to say this is the products of working people who are do business with Communist countries. very serious and very troublesome. told they will be fired if they try to We sell and buy from China, a Com- I have not mentioned the Japanese. start a labor union—just fired. munist country. We do the same with The Japanese are also a good example We accept products into this country Vietnam. We do that because our coun- because every year, for well over a dec- that are produced by kids. We had a try’s official policy is engagement ade, we have had a large and abiding hearing in the Congress some while ago through trade and travel. That is the trade deficit with Japan. Japan, as you that was heartbreaking. It described way to move these countries in the know, has managed trade. The result of children who, in a country far away right direction. We believe that very managed trade with Japan is that the from here, were making carpets and strongly. Republicans and Democrats Japanese continue to keep certain of rugs. They were locked in buildings claim that to be the case. our products out, yet they want to ship making these carpets and rugs. It de- It seems to be different, however, all of their products to the United scribed the conditions in which the em- with Cuba. Although we do business States. ployer took gunpowder and put it on with Communist China and Communist I recall we did a beef agreement with the fingertips of these children and lit Vietnam, Cuba seems somehow to be Japan. About 15 years ago this country the gunpowder to produce scarring, so different. did a beef agreement with Japan. At these young children, using needles to Then Senator John Ashcroft and I of- the end of the beef agreement you sew these carpets, when they stuck fered an amendment on the floor of the would have thought we won the Olym- their fingers would not be injured. The Senate which became law. It became pics. Our trade negotiators were ec- scarring would allow these children to law after 40 years of an embargo in static, big celebration, jubilation, front be more productive. which we couldn’t sell a thing to Cuba. page of the Washington Post, good for Is there an admission price to the Senator Ashcroft and I said it is im- us. Guess what. Fifteen years after a American marketplace? Have we de- moral to use food and medicine as a beef agreement with Japan, a country cided the 1 billion-plus people around weapon; that we ought to be able to with which we have a very large trade the world under virtually any condi- sell food into the Cuban marketplace. deficit—we still have a 50-percent tariff tions of production are acceptable for So we got it passed. The provision was on beef going into Japan. multinational corporations to seek out that the Cubans had to buy food with That would by any definition be a and to employ to produce products that cash. But, nonetheless, we got it failure, but not with our country, be- will be shipped into our marketplace? passed. cause we have such low expectations of Is that what we want? Do we believe The Cubans have purchased nearly $1 ourselves and such low expectations of that is in the long-term economic in- billion worth of agricultural products our trade negotiators being willing to terests of this country? Do we under- from American farmers. But some in stand up for the economic interests of stand that it will injure this country’s this administration have never liked this country. long-term economy? It will mean that that, and they are doing everything The list is almost endless. Wheat to we will hollow out not only the manu- they can to derail and try to stop the China. I have spoken at great length facturing sector but also the middle sale of agricultural products into Cuba. about wheat to China, the promises of class in this country, because the jobs We have had farm fairs and agricul- the Chinese to allow 8.5 million metric they used to expect, the manufacturing tural fairs in Cuba. The Farm Bureau, tons of wheat into China and, once jobs that would pay well, with benefits, the Farmers Union, and American again, promises that were not kept. are not there. They have been farmers and ranchers have gone to The list is virtually endless. outsourced for a quarter an hour or 50 Cuba. Cuba has bought nearly $1 billion We have all these trade negotiators cents an hour. worth of agricultural products from who go out and negotiate agreements. Those who talk about these issues this country. As I said, they wear blue suits and are often called protectionists; Let me tell you what has happened. small glasses. My preference would be xenophobic isolationist stooges who At an organization called OFAC, the to put a uniform on them that says just don’t get it. Office of Foreign Assets Control, they ‘‘USA’’ on the front, because I think The fact is, I am interested in pro- have been doing everything conceiv- they forget for whom they work half tecting the economic interests of this able to stop people from traveling to the time. But nonetheless they nego- country. No, I am not interested in Cuba—yes, even to travel to sell agri- tiate these agreements. protecting Americans from fair com- cultural products—and to stop the sale Even though in my judgment these petition. I think competition rep- of agricultural products into Cuba. agreements have been incompetently resents something that is important to I want to give an example of the ab- negotiated, they are supposed to en- our producers as well because it makes surdity of this. This is a young woman, force the agreements. But let me tell them better producers. But fair com- Joni Scott, who is looking at a Bible. you what is happening in the Depart- petition is critical. I don’t believe pro- She is a wonderful young woman, a ment. ducers or workers in this country can Christian woman, who went to Cuba to

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00016 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S123 distribute free Bibles. Guess what hap- It is not the case, for instance, that eries, aerospace, and telecommuni- pened to this young American woman outsourcing of American jobs strength- cation, I was impressed by his general who went to Cuba to distribute free Bi- ens this country. The President’s chief business acumen and management bles? Our Treasury Department economic adviser said outsourcing is skills. I also found him willing to be tracked her down and tried to slap her good. I guess it’s good as long as he personally engaged and to engage oth- with a $10,000 fine. What was her trans- doesn’t lose his job. The fact is, neither ers on issues outside of his area of ex- gression? Trying to distribute free Bi- he nor people like him ever lose their pertise. I appreciate his willingness to bles in Cuba. jobs in these kinds of constructs. They serve, and I look forward to working Or, I could show you a picture of never lose their jobs. with him in the future. Joan Sloat who joined a Canadian bicy- This is about working families, the Mrs. FEINSTEIN. Mr. President, I cle tour. What was her transgression? kind of people who helped build this want to share my views on the nomina- This 76-year-old grandmother rode a bi- country of ours, the kind of people who tion of Carlos Gutierrez to become cycle for 10 days in Cuba. They wanted value work. They are the ones who lose United States Secretary of Commerce. to attach her Social Security through their jobs. They are the victims of un- Mr. Gutierrez’s rise in the ranks at our own Treasury Department. The Of- fair trade. Kellogg Company—from selling cereal fice of Foreign Assets Control tracked My hope is just once—perhaps just out of a truck in Mexico City 30 years her down and levied a big fine. What once—there would be some kind of fire ago, to serving as the company’s CEO— they are doing is unbelievable. alarm with a $60 billion-a-month trade is truly a remarkable achievement. The Office of Foreign Assets Control deficit. But I hear nothing. There is Such business expertise will be pivotal in Treasury is supposed to be tracking this vast silence. I hear nothing about for Mr. Gutierrez as Secretary of Com- the funding for terrorists. But let me that being a crisis. All we hear is So- merce. In part, for this reason, I am describe the way they are using their cial Security is in crisis, which, of confident that Mr. Gutierrez is a quali- assets. Twenty-one people down at the course, is not the case. fied candidate for this office. Office of Foreign Assets Control are My hope is that perhaps we can find Nonetheless, I believe that it is im- tracking American citizens who are a way in the coming months, we can portant to take note of the breadth of suspected of taking a vacation in Cuba. wake up to the fact that there is a cri- agencies and issues that the Secretary They are under suspicion of taking a sis in trade, and perhaps have the of Commerce oversees. vacation in Cuba—21 people. They have President call an emergency meeting Advancing technology, trade, and four people tracking Osama bin of policymakers and decide what we do business development are just a few of Laden’s financial network. It is unbe- about this. But there is this vast si- the important responsibilities that the lievably dumb—the allocation of re- lence about it. Nobody wants to talk Secretary of Commerce must assume. sources in this manner. about it. Again, I suspect it is because Particularly, in my home State of Cali- Why do I raise this? Because in the nobody here is losing their jobs. But fornia, the Secretary has enormous in- last 2 months or so the administration this country will not long remain a fluence. has decided they want to shut down the world economic power if it doesn’t put The Secretary is responsible for the agricultural sales that do exist and can its fundamentals in order. National Oceanic and Atmospheric Ad- exist legally by reinterpreting when There is a wonderful book called ministration, NOAA, which is critical payment must be made and trying to ‘‘The Lexis and the Olive Tree’’ written to our ability to make use of oceanic create a circumstance that will wave by Tom Friedman. In it, he makes the and atmospheric research. For in- off those who want to sell into Cuba. point that just because there is a run stance, NOAA operates the National Mr. Gutierrez and I had a discussion on a bank, it is not about whether the Tsunami Mitigation Program, which about that when he came to see me. He bank is solvent or has a problem, it is NOAA created in 1997 and maintains in is probably going to have to follow the about whether people perceive it to be the Pacific Ocean today. administration line. It is that our solvent. He makes the point that mar- The Secretary of Commerce also farmers ought to be penalized and ket traders always perceive strengths oversees the International Trade Ad- ought to be prevented from selling into and weakness. And when they move ministration—ITA. In agriculture, the Cuban marketplace. The European against your country and against your manufacturing and numerous other farmers can sell there. The Canadian currency, beware. sectors, trade plays a vital role in the farmers can sell there. We have a nat- This country cannot long exist with a daily lives of Californians. According ural advantage to sell into that mar- $1 trillion annual shortfall. In both to the ITA’s latest data, 55,421 compa- ketplace because it is closest to us. But budget deficits and trade deficits, the nies exported goods from California in this administration wants American fundamentals are out of line—com- 2002. Of these companies, the over- farmers and ranchers to pay the cost of pletely out of order—and everyone here whelming majority were small or mid- their foreign policy. One day about 2 years ago, as a result should know it. Yet we are waltzing sized enterprises with fewer than 500 of the legislation which I got passed, 22 around here acting as if nothing is hap- employees. train car loads of dried peas left North pening. That doesn’t serve this coun- I believe that strengthening our rela- Dakota, the first shipment in 42 years try’s interest. We know better. The tionships with trading partners is fun- into the Cuban marketplace. I am American people know better. Our damental to the continued growth of proud of that. trade policies are in serious trouble California businesses. With the Sec- I think the administration ought to and deserve our full attention. retary’s leadership, fair and balanced be ashamed at what they are doing. On behalf of American workers, on trade policies will help California’s They are saying that trade and travel behalf of American businesses, and on markets increase our export capacity is the road to enlightenment and the behalf of the future of this great coun- even further. road to democratic reform in China and try, we owe it to our kids, we owe it to I applaud the nominee’s openness in in Vietnam, but it is not in Cuba. our future to address this important his previous statements on the need for It has nothing to do with common issue. reforming specific trade policies that sense. It has to do with politics. The Ms. CANTWELL. Mr. President, I need improving. I hope that Mr. administration knows it, and they are wanted to let my colleagues know Gutierrez will be a force for leveling doing everything they can to have briefly of the reasons why I support the the playing field for trade in the fu- American farmers and ranchers—for nomination of Carlos M. Gutierrez to ture. that matter, people such as Joni Scott be Secretary of Commerce. The Senate Although his role representing Kel- or Joan Sloat—paying the price of that will vote on this nomination later logg Company was decidedly narrower burden. It makes no sense at all. today. I had the opportunity to sit than that of Commerce Secretary, I ex- My hope is that as we proceed, some down and speak with Mr. Gutierrez at pect that Mr. Gutierrez will weigh small modicum of commonsense might length. While he has limited experience every position and consequence when infiltrate the basic trade policies that with matters handled and regulated by considering trade policy. The people of are debated both in this Congress and the Commerce Department that are California and the United States de- also in the administration. important to Washington, such as fish- pend on it.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00017 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S124 CONGRESSIONAL RECORD — SENATE January 24, 2005 Much of the Commerce Secretary’s country. The sugar industry pumps $2 city in America’s heartland. Mr. time must be spent encouraging busi- billion a year into the economy of the Gutierrez has a firm grounding in ness development. Too many jobs go Red River Valley in North Dakota and many of the values and strengths that overseas and I believe that a robust Minnesota. So it concerns me greatly make this country great. He also has a policy to vigorously promote job when anyone suggests we should dis- firm grasp of some of the challenges growth should be a top priority for the mantle our successful sugar program to facing American manufacturers. Secretary. take in more foreign sugar. I had the The U.S. has battled for decades to Since 2001, over 2.7 million manufac- opportunity to visit with Mr. Gutierrez open foreign markets to U.S. goods. turing jobs have been lost. We have a few days ago, and he has assured me Carlos Gutierrez knows the ropes of also sustained net job losses in the pri- he understands that as Secretary of those markets and can provide this Na- vate sector since 2001 and household Commerce he would be representing all tion with that invaluable experience. I median income continues to lag. We U.S. businesses, including the U.S. have confidence that he will rec- can and must do better. sugar industry, and not just the inter- ommend firm action both to pry open Through agencies like the Economic ests of sugar consuming companies. foreign markets now closed or partially Development Agency—EDA, the Com- We also face big challenges on a host closed to American goods as well as to merce Secretary can be a real catalyst of domestic issues within the jurisdic- reinvigorate America’s manufacturing for economic growth. By funding public tion of the Commerce Department. For base. works projects and innovative enter- example, over the next 2 years, the The leadership that Mr. Gutierrez prises the EDA brings opportunity to Congress will be revisiting the 1996 used to turn around Kellogg’s financial the communities that need it most. Telecommunications Act. In the 8 standing is desperately needed in this I hope that as Commerce Secretary, short years since that act was passed, country, which has seen high unem- Mr. Gutierrez will aggressively protect we have had a revolution in commu- ployment, record trade deficits, and an American jobs and encourage job cre- nications technology that will require unprecedented loss of manufacturing ation, making full use of resources like us to rethink many of the rules we jobs. Mr. Gutierrez will need every bit the EDA. adopted then. As we do so, it is criti- of his experience to meet the chal- The responsibilities of the Secretary cally important that rural areas not be lenges of this new job. of Commerce are complex and far- left behind. I have always been a strong We are facing a manufacturing jobs reaching, and this will certainly be a supporter of the Universal Service crisis in our country. The U.S. lost a challenging position for Mr. Gutierrez. Fund and the assistance it provides to record number of manufacturing jobs There is a great deal of work to be North Dakota. I remain dedicated to during President Bush’s first term, done, and I look forward to a produc- making sure rural areas have access to 149,000 of which were in Michigan. tive working relationship with Mr. innovative and affordable tele- Michigan’s unemployment rate stands Gutierrez. communications technology, and look at 7 percent, the third worst State in Mr. CONRAD. Mr. President, today I forward to working with Mr. Gutierrez the Nation. want to share a few thoughts on the on initiatives to close the techno- Unfortunately, this crisis has been nomination of Carlos Gutierrez to be logical gap between urban and rural worsened by the administration’s fail- Secretary of Commerce. areas. ure to fund many of the programs that Carlos Gutierrez brings an impressive The Commerce Department has re- could strengthen the manufacturing business background to this set of chal- sponsibility for a broad range of impor- sector. The Commerce Department’s lenges. Born in Cuba, raised in Florida, tant issues. Managing this diverse Manufacturing Extension Partnership Mr. Gutierrez started his career work- portfolio would be difficult in the best program, for example, which helps ing for Kellogg in Mexico. From that of circumstances. But there are a num- small and medium-sized manufacturing start, he was steadily promoted until ber of special challenges that make the he became chairman and chief execu- companies remain competitive and has job facing Mr. Gutierrez even tougher. tive officer. As CEO, he has been cred- led to $8.7 billion in sales and helped Let me start with trade. A couple of ited with turning Kellogg around. It is create over 100,000 manufacturing jobs days ago, the Commerce Department my hope that he will have the same in the past four years, faced an 88 per- reported that our trade deficit for No- success in turning around our trade cent cut in the President’s 2004 fiscal vember exceeded $60 billion. Twelve policy and bring the same energy to year budget request and a 63 percent years ago, our trade deficit for the en- tackling the domestic challenges under cut in the 2005 fiscal year request. tire year was just $40 billion. Now, it is his purview. The President also proposed elimi- on track to exceed $600 billion. This Mr. LEVIN. Mr. President, I heartily nating the Commerce Department’s course is unsustainable. If we do not support the nomination of Mr. Gutier- Advanced Technology Program, which start taking steps now to address this rez to be Secretary of Commerce. In encourages public-private cooperation imbalance, we could face a collapse in nominating Kellogg’s CEO Carlos and focuses on improving the competi- the value of the dollar that would Gutierrez to be the next Secretary of tiveness of American companies in the spark inflation, roil our markets, and Commerce, President Bush selected a global marketplace. Manufacturing dampen our economic prospects for Michigander who has a wealth of busi- jobs pay high wages, provide health years to come. ness experience both in the U.S. and benefits and offer retirement security. I hope Mr. Gutierrez will take this abroad which gives him a unique un- We cannot afford to lose these good issue very seriously. We need to make derstanding of our country’s role and jobs or let them leave our country. I it clear to our trading partners that it challenges in the global marketplace. am hopeful that as Secretary of Com- is no longer acceptable for them to de- He also has a proven track record of merce, Carlos Gutierrez will prove to value their currencies to gain a com- wise budget management. be a strong advocate for these pro- petitive advantage over American pro- Mr. Gutierrez represents the quin- grams. ducers. We need to strictly enforce our tessential American dream, emigrating In addition to rebuilding our base of laws against unfair trade practices. We to this country with his parents at the manufacturing jobs, we need to devise need to insist that our trading partners age of 7 from Cuba and working his a trade policy that focuses on opening comply with the trade agreements they way up the ranks of the Kellogg Com- foreign markets rather than employing have signed with this country. And we pany, starting with selling Kellogg ce- policies that encourage jobs to move need to forcefully advocate for global real from a van, stocking the shelves of overseas or tolerating foreign barriers trade rules that will unequivocally his customers, to becoming the highly to our goods and expanding trade defi- benefit U.S. businesses, farmers, and respected President and CEO of a top cits. workers. American Fortune 500 Company. His During his time at Kellogg, Mr. I want to touch on one issue in par- story is as American as Corn Flakes Gutierrez managed several of the com- ticular. During Mr. Gutierrez’s tenure and baseball. He is a passionate fan of pany’s international divisions, includ- as CEO, Kellogg lobbied to increase both. ing serving as the general manager of sugar imports into this country. Sugar Mr. Gutierrez’s home is in Battle Kellogg of Mexico, the president and is a vital industry in my part of the Creek, MI, a medium-sized, midwestern CEO of Kellogg Canada, Inc., and the

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00018 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S125 president of Kellogg Asia-Pacific. coming years from a surging trade def- outstanding choice for Secretary of These experiences provide him with the icit to a depleted domestic manufac- Commerce. Without a doubt, Mr. expertise needed to address our soaring turing base to a weakened dollar—I am Gutierrez possesses the necessary skills trade deficit and create a climate confident that Mr. Gutierrez is more to assume this important position. His where U.S. products have the same ac- than capable to do his agency’s part in skillful leadership has brought strong cess to foreign markets as we give in taking on these challenges. I believe growth and success to one of the this county to foreign products. that Mr. Gutierrez will bring the same world’s most notable companies. Be- The U.S. trade deficit has soared to type of leadership and determination cause of his many years with the Kel- record levels in the past 4 years. We to the Department of Commerce that logg Company, Mr. Gutierrez under- have a failed trade policy as a nation he has shown throughout his career in stands how to create jobs and foster because we have not insisted that our the private sector. greater opportunity for all Americans. trading partners grant us true reci- I commend the President for making I believe that Mr. Gutierrez will do an procity and we have not forcefully im- this nomination. Although Mr. Gutier- excellent job in creating conditions for plemented our trade laws. rez and I may not agree on all eco- economic growth and opportunity by The U.S. needs to fight much harder nomic issues, there is every indication promoting innovation, entrepreneur- to open foreign markets to U.S. goods. that he will serve our country effec- ship, competitiveness, and stewardship. In 2003, we had a $124 billion trade def- tively and fairly as the Secretary of Consumer demand, rising sales, and icit with China, and it is expected to Commerce. I am proud to support his increased profits are creating con- exceed $150 billion in 2004; we have a nomination. fidence in the growing economy. For large and persistent automotive deficit Mr. DOMENICI. Mr. President, I rise example, in my home State, the Utah with Japan; and we have tolerated cur- today in strong support of the nomina- Department of Workforce Services con- rency manipulation by several of our tion of Carlos Gutierrez to be Sec- firms that Utah added 32,200 new jobs trading partners who have rigged their retary of Commerce. Mr. Gutierrez has in 12 months ending on October 31, 2004, currency values, making their exports set a great example for all Americans and the Salt Lake City-Ogden metro artificially cheap and thus giving their and has proved himself a true leader area topped the list of U.S. cities in the companies a huge trade advantage and and visionary in the world of business. growth rate of women-owned busi- devastating U.S. workers, farmers and It is for this reason I fully support his nesses. According to the Department of businesses. nomination and I have no doubt he will Labor, Utah ranks third in terms of the We can reduce this trade deficit by be a truly superb Secretary of Com- largest one-year percentage gains in insisting on a level playing field with merce. non-farm employment. And, just re- our trading partners; by closing tax Carlos Gutierrez’s story is truly in- cently, Forbes magazine named Head- loopholes that provide incentives to spiring and sets a wonderful example waters, Inc., a Utah-based alternative businesses to move jobs overseas; and for all Americans. Born in Cuba, Car- energy technology company, as second by supporting efforts to ensure that los, along with his family fled to the of the top 200 best small companies in China complies with commitments it United States in 1960 to escape the dic- the United States. These are just a few has made to the World Trade Organiza- tatorship of Fidel Castro. Eventually, of many indicators proving that Presi- tion. the Gutierrez family chose to live in dent Bush’s policies are succeeding in We also need to adequately fund the Mexico and settled in Mexico City. creating jobs and expanding the econ- Trade Adjustment Assistance program, At the age of 20, Carlos Gutierrez’s omy. which provides relief for small and me- journey through the world of business I look forward to working with Mr. dium-sized manufacturing and agricul- began when he took a job driving a Gutierrez, as he is undoubtedly quali- tural companies that experience loss of truck for the Kellogg cereal company fied and prepared to take the helm of jobs and sales because of foreign im- in Mexico City. Within 10 years, Mr. the Commerce Department. Of course, ports. These are all areas that would Gutierrez proved himself an invaluable Mr. Gutierrez has many challenges come under Mr. Gutierrez’s jurisdiction asset to the company and was pro- ahead of him, but I am confident that as Secretary of Commerce. moted to general manager of Kellogg’s he will serve our country with dedica- tion and distinction. The nomination of Mr. Gutierrez is entire operation in Mexico. Only 15 Mr. FRIST. Fortune magazine de- part of an overhaul of President Bush’s years later, Mr. Gutierrez achieved the economic team. I am hopeful that this scribes him as possessing ‘‘disarming unthinkable and began running the op- charisma, steely resolve, and an utter reorganization also represents a new erations for the entire company. This lack of pretension.’’ The President of direction for the country, and that we is truly a prime example of the Amer- the United States hails him as a ‘‘great are able to rebuild our manufacturing ican dream and definitively dem- American success story.’’ sector and reverse our trade deficit. onstrates Carlos Gutierrez’s consider- It is my pleasure to support the nom- Mr. Gutierrez’s background at Kellogg able talent for business. ination of Carlos Gutierrez, chairman has given him the experience to take I am also pleased by this nomination and CEO of the Kellogg Company, to the important steps that are necessary because of the diversity it adds to become America’s next Secretary of to begin to do that. President Bush’s Cabinet. This Presi- Commerce. Mr. LEAHY. Mr. President, I am dent has demonstrated a commitment Mr. Gutierrez is a true testament to pleased today to express my support to selecting Americans from all walks the American Dream. From humble be- for the nomination of Carlos Gutierrez of life and ethnic backgrounds to serve ginnings as a Cuban refugee, he has be- to be the next Secretary of Commerce. him, and I believe that the selection of come one of the most respected and ad- Mr. Gutierrez’s personal history is re- Carlos Gutierrez is a clear sign of the mired businessmen in America. markable. Born in Havana, Cuba, Mr. contributions that Hispanic Americans Mr. Gutierrez and his family fled Gutierrez came to the United States at are making to our Nation. Cuba when he was just 6 years old. His the age of six. He learned to speak I believe as Secretary of Commerce, father ran a successful pineapple com- English from a hotel bellhop and at the Carlos Gutierrez will continue to dis- pany in Havana. Then one day, there age of 20, he began working for the Kel- play the values and leadership which was a knock at the door. Fidel Castro’s logg Company as a truck driver in Mex- have been prevalent throughout his ca- regime had named the elder Gutierrez ico City. A little less than 25 years reer. I have no doubt that as Secretary an enemy of the state. Mr. Gutierrez’s later, Mr. Gutierrez was in charge of of Commerce Mr. Gutierrez will be able father was briefly imprisoned. The the entire company as the chief execu- to meet any challenge facing this coun- business was confiscated. Mr. Gutierrez tive officer and chairman of the board. try in the future. recalls that, ‘‘We were on a plane right As CEO, he quickly turned the battered Mr. HATCH. Mr. President, I rise to after that.’’ and declining Kellogg into a strong, express my support for Mr. Carlos The family landed in Miami Beach in stable and increasingly profitable com- Gutierrez as our new Secretary of Com- 1960. It was there that 6 year old Carlos pany. merce. learned English from hotel bellhops. While the next Secretary of Com- Considering the global nature of the The family eventually settled in merce will face serious challenges in marketplace, Carlos Gutierrez is an Mexico City, and at the age of 20, Mr.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00019 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S126 CONGRESSIONAL RECORD — SENATE January 24, 2005 Gutierrez took a job driving a Kellogg The PRESIDING OFFICER. The Sen- am here—to recognize and thank a re- van selling frosted flakes to small gro- ator may ask consent to do so. markable individual, a member of my cery stores. Mr. STEVENS. I ask unanimous con- team who has served our State of Mon- Ten years later, he became general sent all time be yielded back. tana in the Senate for more than 9 manager of Kellogg’s Mexico oper- The PRESIDING OFFICER. Without years, Zak Andersen. ations. Within 3 years, he turned the objection, it is so ordered. Zak is leaving the post as my chief of Mexico plant from the company’s least Mr. STEVENS. I ask the Chair to put staff to go to work for a government productive to most productive. the issue before the Senate. affairs firm that represents folks in After stints in Asia and Canada, Mr. The PRESIDING OFFICER. The Montana and the Northwest, The Gal- Gutierrez returned to the United question is, Will the Senate advise and latin Group. States in 1990, and in 1999 became consent to the nomination of Carlos M. Zak is a huge fan of that American Chairman and CEO of the Kellogg Com- Gutierrez to be Secretary of Com- icon Bruce Springsteen, who once said: pany. merce. ‘‘The door’s open but the ride ain’t In 5 short years, Mr. Gutierrez has The nomination was confirmed. free.’’ The same could be said of Zak’s steered the cereal maker into the num- Mr. STEVENS. I ask that the Presi- last 9 years. ber one spot in the U.S. cereal market. dent be immediately notified of the A graduate of the University of Mon- Under his leadership Kellogg has be- confirmation of this nominee. tana, Zak first started working for me come a food industry powerhouse with f during my 1996 reelection campaign as industry leading sales growth. LEGISLATIVE SESSION a door-to-door canvasser. As a sign of Those who have studied his business things to come, he was quickly bumped techniques say that Mr. Gutierrez is up to field coordinator. successful because he is able to focus in MORNING BUSINESS After the people of Montana, in 1996, on the key issues and convey his vision decided to return us to represent them to everyone—from the assembly line Mr. STEVENS. I ask unanimous con- sent there now be a period of morning in the Senate, Zak came to work here worker to members of the board. He be- in my Washington office, where he lieves that every American should have business, with Senators permitted to speak therein for up to 10 minutes quickly moved from legislative cor- the opportunity to succeed. respondent, to assistant to the chief of He also believes that America is, and each. staff, to legislative assistant, to legis- should be, the best place in the world The PRESIDING OFFICER. Without lative director, and finally chief of to do business. objection, it is so ordered. Former Governor John Engler of Mr. STEVENS. I suggest the absence staff. Zak also played a pivotal role in my Michigan, who has worked with Mr. of a quorum. 2002 reelection campaign, where again Gutierrez, rightly points out that Mr. The PRESIDING OFFICER. The Gutierrez would be ‘‘the most inter- clerk will call the roll. the people of Montana decided to re- The assistant legislative clerk pro- national leader that Commerce has turn us, at that time with more than 60 ever had.’’ ceeded to call the roll. percent of the vote. Mr. Gutierrez says that one of his Mr. ALLARD. Mr. President, I ask Zak, of course, is a Montanan. He has proudest accomplishments was helping unanimous consent that the order for an uncanny ability to read, follow, and his son and his wife become American the quorum call be rescinded. know Montanans’ real values—our The PRESIDING OFFICER. Without citizens. From one American citizen to hopes, our wishes, our fears, and our another, I can assure him the pride is objection, it is so ordered. desires. And he uses that almost con- Mr. ALLARD. Mr. President, I would mutual. stantly to help our State. From his remarkable biography, to like to exercise my right under morn- Zak worked his way from field staff his meteoric success, Mr. Gutierrez is ing business to make a comment on the to chief of staff in 9 years’ time. He an inspiration to all. He took the Marriage Protection Amendment. likes to joke that he ‘‘went from gar- American dream and ran with it—and, Does my colleague from Montana bage band to broadband’’ in less than a I should note, without ever having fin- have a question? decade. That he did. In the process, he Mr. BAUCUS. No. If the Senator will ished college. racked up a list of achievements too I am confident that his accumulated yield, I ask him how much time he long to do justice here, but I will name wisdom, knowledge and skills will might use? just a few. Recognizing the need for ac- make Mr. Gutierrez an effective Com- Mr. ALLARD. Less than 10 minutes. tion on improving our State’s eco- Mr. BAUCUS. I thank the Senator. nomic well-being, Zak spearheaded my merce Secretary and eloquent advocate The PRESIDING OFFICER. The Sen- of our economic policies and ideals. economic development efforts and ator from Colorado. I urge my colleagues to support the helped me organize the first ever Mon- (The remarks of Mr. ALLARD per- nomination of this extraordinary tana economic development summit in taining to the submission of S.J. Res. 1 American. 2000. That meeting drew more than are printed in today’s RECORD under I yield the floor and suggest the ab- 1,000 people to Great Falls. That might ‘‘Submitted Resolutions.’’) sence of a quorum. not sound like a lot of folks back here, The PRESIDING OFFICER. The The PRESIDING OFFICER. Who seeks recognition? but in Montana it is. After that, he clerk will call the roll. helped organize two more economic The assistant legislative clerk pro- The Senator from Montana is recog- nized. summits, both of which were huge suc- ceeded to call the roll. cesses and helped the people in our Mr. STEVENS. Mr. President, I ask f State get more good high-paying jobs. unanimous consent that the order for CONGRATULATING SENATOR Zak also helped me bring new busi- the quorum call be rescinded. VITTER nesses to Montana, companies like Na- The PRESIDING OFFICER. Without tional Electric Warranty. He helped objection, it is so ordered. Mr. BAUCUS. Mr. President, first, I Montana businesses grow and expand, Mr. STEVENS. How much time is re- congratulate the present occupant of maining? the chair on his election to serve the businesses like Zoot Enterprises and The PRESIDING OFFICER. The Sen- State of Louisiana in the Senate. I Summit Design. He should know that ator from Alaska has 45 minutes re- look forward to working with him, as his efforts are not lost on the people maining. all my colleagues do, and wish him who found good-paying jobs because of Mr. STEVENS. Has the minority no luck while he is in the Senate. I know his work. Zak led the appropriations time remaining? the people of Louisiana will be well efforts in our office, during which time The PRESIDING OFFICER. Three served. we got important Montana economic and a half minutes remaining for the f development projects funded, projects minority side. such as the Mariah II wind tunnel in Mr. STEVENS. Is it possible to get TRIBUTE TO ZAK ANDERSEN Butte; the Fort Peck Interpretive Cen- permission to yield back the balance of Mr. BAUCUS. Mr. President, I also ter, MonTec in Missoula and Tech the minority’s time? rise—in fact, it is the primary reason I Ranch in Bozeman.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00020 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S127 Recognizing that methamphetamines Zak: His remarkable abilities, his devo- First, health care. It is an honor to have become a scourge in our close- tion to the State he loves; and his com- join our Democratic leader and so knit Montana communities, Zak mitment to excellence in all that he many of our colleagues in introducing helped me wage a 2-year campaign— does. the Affordable Health Care Act in and boy it was tough; we worked very We will miss you, Zak. We will miss meeting our responsibility to the Medi- hard to get that done—to help me get you in our office, but we are going to care Beneficiaries Act. This Affordable five of our counties with the worst find you very quickly. You are still Health Care Act states our strong com- meth problems included in what is part of our team. And I thank you, mitment as Democrats to end the crisis called the high density drug trafficking Zak, so very much. Montana thanks in health care that affects every fam- area, otherwise known as HIDTA. That you and a grateful nation thanks you ily. It is a downpayment on our com- is one of our great accomplishments, for your service. mitment to quality, affordable health something of which I am proud, to help I yield the floor. care for every American and we will fight the scourge of The PRESIDING OFFICER (Mr. not rest until that goal is achieved. methamphetamines. That has helped CORNYN). The Senator from Alabama. The worsening crisis in health care is law enforcement officials in our State (The remarks of Mr. SESSIONS and caused by skyrocketing costs, declin- crack down on meth. Mr. WARNER and Mr. ALLEN pertaining ing insurance coverage, and less secu- Zak also helped me work in this to the introduction of S. 77 are located rity for every family. Businesses, espe- Chamber to pass big ticket legislative in today’s RECORD under ‘‘Statements cially small businesses, find it increas- items such as tax cuts, Medicare im- on Introduced Bills and Joint Resolu- ingly difficult to provide decent cov- provements, and new Healthy Forest tions.’’) erage for their employees. Rising legislation. These are just a few of Mr. ALLEN. Mr. President, I suggest health care costs threaten the competi- Zak’s outright achievements. But it is the absence of a quorum. tiveness of all American businesses. the intangible abilities that I will re- The PRESIDING OFFICER. The Even people who have health insurance member most in Zak. I dare say most clerk will call the roll. today cannot count on it being there in our office will remember those best, The legislative clerk proceeded to for them tomorrow. No American fam- too. call the roll. ily is more than one pink slip or one In particular is his amazing ability Mr. AKAKA. Mr. President, I ask employer decision away from being un- to quickly analyze an issue and break unanimous consent that the order for insured. it down into pros and cons, both from the quorum call be rescinded. In the face of this massive crisis in the standpoint of policy and of politics. The PRESIDING OFFICER. Without health care, the administration and There are a lot of quick minds on Cap- objection, it is so ordered. Congress have been missing in action itol Hill but Zak, to me, stands out as The Senator from Hawaii is recog- for too long. The legislation we are of- one of the very best, one of the bright- nized. fering today will not solve all of these est. Undoubtedly, that quickness of Mr. AKAKA. I thank the Chair. problems, but it is a good start and we mind contributes to his sense of (The remarks of Mr. AKAKA per- are committed to finishing the job. It humor: a bit dark, extremely dry, ever taining to the introduction of S. 13 are will guarantee coverage for every present. Zak’s sense of humor is rare. printed in today’s RECORD under child. It will lower prescription drug It is remarkable. He has used it to ‘‘Statements on Introduced Bills and costs by allowing importation of safe build bridges with the Montana delega- Joint Resolutions.’’) drugs from abroad. It will improve the tion, to keep my office train on the The PRESIDING OFFICER. The Sen- quality of health systems while reduc- tracks during some of the more bumpy ator from Massachusetts. ing costs at the same time by adopting times, and to mentor younger staffers as they learn the ways of working in f a modern information technology in this remarkable place. DEMOCRATIC PRIORITIES AND health care. Affordable health care is a high pri- We will also remember him for his VALUES ority for every family and it should be elaborate practical jokes that often in- Mr. KENNEDY. Mr. President, today volve the whole office. But beyond an equally high priority for this Con- Senate Democrats introduced 10 bills gress. We face a crisis and it is time to that, we will remember Zak for his un- that illustrate the priorities and values canny ability to get things done and act. Senate Democrats are committed we intend to fight for in the coming his relentless commitment to Montana. to guaranteeing the basic right to months to meet our commitments to His no-nonsense style, his can-do atti- health care for all Americans and when the American people. It is an agenda tude helped me and others accomplish we say ‘‘all,’’ we mean all. for a future of security, opportunity, great things for our State and most es- The legislation we are introducing and responsibility. The contrast with pecially for our people. today cuts the special interest deals A humble guy from Helena, Zak em- the Bush administration and the Re- out of the Medicare Program, addresses bodies Montana—a very bright, tal- publican leadership in Congress could the troubling gaps in the Medicare ented, committed guy, hard working, not be greater. They say they are for drug benefit. Medicare is a solid com- genuine, and astute, and ever mindful ownership, but their vision means an mitment to our senior citizens, not a of the fact that he is very lucky to be America divided. In a society based on piggy bank for special interests, and it from and advocate for the greatest ownership, we are divided by winners is time to fulfill that commitment. State in the Union. He is extremely and losers, rich and poor, a shrinking Second is education. Our Nation’s fu- loyal. middle class, owners and those who ture depends on ensuring equal edu- Zak loves his microbrews, Mr. Bruce cannot afford to own. cational opportunities for all children. Springsteen, a gin-clear trout stream, Republicans see the forces of We must keep the promise to leave no the Oakland Raiders, record stores, and globalization as a chance for greater child behind. For Democrats, this is University of Montana football. Most profits at the expense of job and wage not just a slogan. For us, it is a moral of all, he loves his native State of Mon- security for American families. Demo- commitment. This year alone, the tana. crats are for opportunity for all. Our Bush administration underfunded No Fittingly, one of his favorite authors vision is for an America united to pro- Child Left Behind by $9.8 billion, leav- is Cormac McCarthy. Many of the vide opportunity for all Americans and ing 4 million children behind. In con- McCarthy books are about the Amer- to fulfill the American dream. trast, we propose fully funding No ican West and therefore not for the We embrace the challenges of Child Left Behind and also keeping our faint of heart. But they are also very globalization not by lowering our promises to disabled children by fully real, sparsely punctuated, light on wages but raising our skills to equip funding the Individuals With Disability frills, heavy on matters of depth and every American to compete for good Education Act. critical thought—in other words, a lot jobs in the local economy. We also recognize that what we do like Zak. I will mention three areas in which for children’s early education and de- As the pages of his life open to end- Democrats have introduced bills today velopment does more to ensure their less opportunity, we will all remember that reflect our values and priorities. success later in school and later in life

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00021 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S128 CONGRESSIONAL RECORD — SENATE January 24, 2005 than any other investment. Democrats Jay Bybee, head of the Justice De- house lawyer, was at the heart of the are committed to making this invest- partment’s Office of Legal Counsel, was debate, inside the administration, on ment by expanding Head Start, early nominated for a lifetime appellate prisoner detention and interrogation. Head Start, and childcare funding. At court judgeship in the spring of 2002, Although he says he can’t remember it the same time, we propose improving before he wrote the now notorious legal very well, he apparently was the person the quality of these programs by re- memorandum redefining torture so the CIA contacted when they wanted to quiring improved standards for teach- narrowly that virtually the only vic- use extreme interrogation methods on ers and seeing that they are supported, tims who could complain would be dead those whom our troops and intelligence trained, and adequately compensated victims. Mr. Bybee even went so far as agents detained in Afghanistan and to do the job. to state that the President could sim- Iraq and elsewhere. He was the one who We also must do more to ensure that ply decree that any action taken as the went to Mr. Bybee at the Department America is globally competitive by Commander in Chief was immune from of Justice to obtain the notorious raising our skills. To be globally com- challenge. Most people who later read Bybee memorandum justifying the use petitive, we must also inspire a renais- that memo immediately rejected its of torture. He keeps saying he doesn’t sance in math and science education in conclusions. But not the White House. recall, but his office obviously helped America so that all Americans are pre- Instead, when the Bybee nomination Mr. Bybee develop the memorandum. pared for the jobs of tomorrow. Today, was not acted on by the Senate in the When Mr. Gonzales received the Democrats are taking an essential first 107th Congress, President Bush renomi- memorandum, he disseminated it far step in winning the global and math/ nated him for the same judgeship in and wide in the military and elsewhere, science arms race by making college the 108th Congress. Although we asked although he can’t remember how. For tuition free for any young person will- for Bybee’s OLC writings we received almost 2 years, Mr. Gonzales allowed ing to work as a math, science, or spe- nothing, thus the Senate knew nothing this policy guideline to stand through- cial education teacher. We must make about the Bybee memorandum on tor- out the Government as the administra- the United States first in the world ture, and his nomination was con- tion’s formal policy on prisoner abuse. rather than 29th in math and science. firmed. For almost 2 years it remained in ef- Finally, when it comes to jobs, the William Haynes was, and still is, fect, producing a system of detention Fair Wage, Competition and Invest- General Counsel to the Secretary of and interrogation that the Inter- ment Act will help restore the faith of Defense. As such, he had a personal national Committee of the Red Cross, Americans that if they work hard and role in deciding how far Defense Offi- the FBI, the Defense Intelligence Agen- play by the rules they can live the cials could go in interrogating detain- cy itself found abhorrent to the rule of American dream. ees. But he had a problem. High-level law. When the Bybee memorandum fi- The bill raises the minimum wage to military officers and top State Depart- nally became public last summer, Mr. $7.25 an hour to improve the quality of ment lawyers were experienced in these Gonzales attempted to distance himself life for 7.5 million workers. Despite issues and the treaties that governed and the President from it, but he didn’t Democratic efforts to raise it, the min- them, and they were adamantly op- quite withdraw it. imum wage has been stuck at $5.15 an posed to the extreme change in policy Suddenly last month, the night be- hour for 7 long years. fore New Year’s Eve, so late that most And the bill will restore overtime that he and the Secretary and the protections for the more than 6 million White House were seeking. newspapers could not get the story in So he formed a ‘‘working group’’ of Americans denied overtime pay and the the next day’s paper, Mr. Gonzales and lawyers that excluded these dissenters. guarantee of the 40-hour workweek by his Justice Department and White That working group’s report adopted the Republican overtime rule. It will House colleagues decided that the verbatim some of the most outrageous also expand overtime protections to memo was so clearly erroneous and its cover additional workers. parts of the Bybee memorandum. In standards so extreme, that it should be The Democratic bill eliminates tax one memo, for example, Mr. Haynes withdrawn altogether and replaced by breaks for companies that ship good told Secretary Rumsfeld that a gentler version. American jobs overseas. It requires waterboarding, forced nudity, the use Members of the Senate have asked companies that send jobs to other of dogs to create stress, threats to kill repeatedly for the relevant documents countries to provide advance warning the detainee’s family, and other ex- on all this. But we have not received a to workers and communities. treme tactics not only do not violate single one of the documents we need. The bill makes significant invest- the Uniform Code of Military Justice, Four Senate committees have now ments in American roads and water- but are ‘‘humane.’’ considered some part of this issue. The ways, broadband technology, and re- After he did that, the White House Foreign Relations Committee had a search and development to increase our also nominated him to a lifetime brief opportunity to question Ms. Rice competitiveness, improve the quality judgeship on a Federal court of ap- last week, but apparently not enough of our lives, and create new jobs to help peals. Fortunately, by the time the Ju- information on her involvement was make up for those lost under Repub- diciary Committee was ready to vote available to assess her responsibility. lican leadership. on his nomination in late 2003, we had The Intelligence Committee is still These are the kinds of initiatives become aware of some of his other con- waiting to hear from the CIA on its that Democrats will fight for this troversial legal views, and the Senate role in the prisoner abuses, but as far year—initiatives that will expand op- did not confirm him. President Bush as I know nothing has been forth- portunity, provide a secure future for has chosen to renominate him, how- coming. Despite the initiatives and our families, and improve the quality ever, so the Senate will have another hard work of the chairman, the rank- of life for all Americans. chance to review his role in support of ing member and many other members f torture. of the Armed Services Committee, Sec- Condoleezza Rice has been nominated retary Rumsfeld and his deputies have THE PRESIDENT’S NOMINEES to be Secretary of State, and we will managed to stonewall and slow-walk us Mr. KENNEDY. Mr. President, Jay consider her nomination later this right through the election, and have Bybee, William Haynes, Condoleezza week. As national security adviser she used a series of separate investigations Rice, Alberto R. Gonzales—these four was clearly involved in the prisoner to propagate the original message that persons have three things in common. abuse issues, but because of the nature it was just a few bad apples on the They were all high officials in Presi- of her position, we know less about her night shift who committed the abuses. dent Bush’s first administration. They role. Two of the members of the For- We now are told that there was con- were all key participants in the shame- eign Relations Committee have voted fusion and lack of clarity in the rules ful decision by the administration to against her nomination, and we will on interrogation without any indica- authorize the torture of detainees at hear their full report in the coming de- tion of who was ultimately responsible, Guantanamo and in Iraq and they have bate. and without any accountability by all been nominated by President Bush White House Counsel Alberto those we know were involved, such as for higher office. Gonzales, as the President’s chief in- Mr. Haynes and Mr. Gonzales.

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Mr. President, I ask nals with the acts of distinguished pub- nominees have been stopped in com- unanimous consent that the order for lic servants who have disavowed any mittee or withdrawn by the President, the quorum call be dispensed with. policy, any approval, of abuse or the only 9 of over 700 cabinet nominees The PRESIDING OFFICER (Mr. use of torture as a policy of this Gov- have actually been rejected by the Sen- BURR). Without objection, it is so or- ernment, to conflate and somehow con- ate. Two of them have been nominees dered. fuse and gloss over them and to suggest for Attorney General. President Calvin f that indeed these individuals did some- Coolidge’s nominee for Attorney Gen- how by their acts or inactions author- NOMINATIONS eral was rejected not once but twice ize the use of torture or condone, en- and both times by a Senate of his own Mr. CORNYN. Mr. President, I didn’t courage, or create a perception that party. intend to speak this afternoon, but torture was okay, is just false. It is a Mr. Gonzales’s case is a rare case in after listening to the comments of the story, but it is a false story. The Amer- which a nominee may have been di- Senator from Massachusetts regarding ican people should not be confused be- rectly responsible for policies and re- four individuals, three of whose nomi- cause the facts clearly point to the sulting practices that have been nations are pending before this body, I contrary. counter-productive, contrary to inter- believe a brief statement and indeed a We do know that the Department of national standards and practices, brief correction of the RECORD are nec- Defense, pursuant to the investigation harmful to our troops’ safety, legally essary. called for by Secretary Rumsfeld, has erroneous, and plainly inconsistent I am well aware that in politics a conducted eight investigations, three with the rule of law and the basic val- charge unanswered is often a charge of which have not yet concluded, of the ues which this administration prides believed. Indeed, I think the practice is Abu Ghraib prison scandal. So far, the itself on defending. not too rare that some believe if you conclusion has been, as well as that of President Bush’s Inaugural Address make the same erroneous charge over the independent investigations like resounded with those values last week. and over and over and over again de- that of former Defense Secretary ‘‘From the day of our Founding,’’ he spite the facts that eventually your op- Schlesinger, that the acts at Abu said: ponent will tire and fail to correct the Ghraib are the acts of a criminal few we have proclaimed that every man and RECORD. I don’t want to be guilty of on the night shift, not a matter of pub- woman on this earth has rights, and dignity, that because I believe not only do the lic policy of this Government or of the and matchless value, because they bear the American people need to know the Department of Defense or any branch image of the Maker of Heaven and earth. truth and not be misled, the nominees or agency of the Government. The choice before every ruler and whose integrity has been impugned Indeed, recently we saw the Amer- every nation, he said, is: during this all too painful and some- ican system of justice mete out that the moral choice between oppression, which times even cruel process deserve bet- justice in convicting one soldier, is always wrong, and freedom which is eter- ter. Graner, of abusing prisoners at Abu nally right. Obviously, the Senate in providing America’s belief in human dignity will Ghraib and meting out a 10-year prison guide our policies, its advice and consent on the Presi- sentence in that connection. dent’s nominations should ask hard he said. It is not true, and the American peo- questions, and we should press for an- ple should not be misled or perhaps be Americans move forward in every genera- tion by reaffirming all that is good and true swers to those questions. But there given information that has no jus- that came before—ideals of justice and con- does come a point where the process no tification in the Record. It is unproven, duct that are the same yesterday, today, and longer becomes one that can be de- these allegations. They are unjustified. forever. scribed as a search for the truth but, Frankly, I don’t believe it does this Those are lofty values, and all of us rather, becomes akin to harassment, body honor to propagate these false al- agree with them wholeheartedly. But and, unfortunately, I think that line legations. they were abandoned by the White has been approached. Everyone has a right to their opin- House in its decision on the use of tor- Let me explain what I am talking ion. I know some of the speakers who ture, and our credibility in the world about. The Senator from Massachu- are so concerned from time to time as a leader on human rights and re- setts talked specifically about four in- about what happened at Abu Ghraib, as spect for the rule of law has been se- dividuals—Mr. Bybee, who is now a cir- we all are, disapprove of this Nation’s verely wounded. The cruelest dictators cuit court judge; Mr. Haynes, who is policy in the first place in going to war can now cite America’s actions in their the general counsel for the Department in Iraq and removing Saddam Hussein. own defense. of Defense; Condoleezza Rice who, as Somehow, and this is unthinkable to How can we be true to our own oath the Chair knows, we all know, has been me, they actually think that the world to defend the Constitution, if we con- nominated by the President to be Sec- would be a better place with Saddam firm as the highest legal officer in the retary of State, and whose confirma- still in power. I disagree. Not only is land a person who may well have en- tion we will debate tomorrow, and, fi- the world a better place with Saddam couraged our basic values to be so nally, the name of Alberto Gonzales, in a prison cell awaiting trial, but the grossly violated? currently White House counsel, having American people are safer and the peo- So far, Mr. Gonzales has not been re- been nominated to serve as Attorney ple of Iraq now have the hope of a free, sponsive to our questions in the Judici- General. Those are the four individuals fair election in the next week or so ary Committee about his role. He still who are the object of his comments. leading, we all hope, to a free and has time to clear the air, and I urge I want to be fair to the Senator from democratic Iraq. him to do so. Massachusetts. Sometimes when I was While everyone has a right to their The position of Attorney General and listening to him I thought my hearing opinion, no one has a right to distort the issues involved in this nomination was betraying me. I was not quite sure the facts. Unfortunately, when it go to the heart of our Nation’s commit- what I heard was, in fact, what he was comes to the involvement of these four ment to the rule of law. A nominee saying because it was so far from what individuals—Mr. Bybee, now Judge whose record raises serious doubts I believe the facts to be. I believe, and Bybee, confirmed by this Senate not about his own commitment to the the RECORD will correct me if I am too long ago by a vote of nearly 80 Sen- basic principle should not be confirmed wrong, he used words tantamount to ators; Mr. Haynes, who is the general as Attorney General of the United authorize the use of torture. He did, counsel for the Department of Defense; States. and I wrote this down, speak of a ‘‘for- and as I mentioned, Condoleezza Rice

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Without rorist attacks involving weapons of ment, whether it be authorizing the objection, it is so ordered. mass destruction. use of force or whatever the issue may f When our veterans come home, we be, cannot be used as an excuse to PRIORITIES OF THE DEMOCRATIC will not abandon them. We will keep make such scurrilous allegations CAUCUS our promise to them. We now have a against public servants who I believe new generation of veterans returning are trying to do their best. If, in fact, Ms. STABENOW. Mr. President, I from Iraq and Afghanistan. We will en- somehow this administration and these rise to speak to the American people sure that all veterans get the health individuals who are engaged in impor- about the values and priorities of the care they deserve. We will make sure tant public policy decisions did not Senate Democratic caucus. Today Sen- that no veteran is forced to choose be- care one whit about what the law is, ate Democrats introduced 10 ambitious tween a retirement and a disability what the definition of torture is, and leadership bills that will make our check. country more secure, expand oppor- how we can avoid somehow engaging in We will also make the same commit- tunity for all, and honor our responsi- this sort of illegal and heinous act ment to the soldiers of today that was bility to future and past generations. against any human being, why would made to past veterans with a 21st cen- The Democratic agenda stands in they research the law? Why would they tury GI bill. We understand that one of stark contrast to the priorities ad- write lengthy legal memoranda? Why the most effective ways to increase op- vanced by Republicans. Democrats un- would they have debates among them- portunities for our families is a high derstand that putting America’s secu- selves about what the law is and what quality, good-paying job. The promise rity first means providing troops and Congress proscribed—indeed, what our of America is that if you work hard their families with the resources they international treaty obligations pro- and play by the rules, you should have have told us they need to protect our scribe in this area. They would not. a real opportunity to provide for your- freedom. Where Republican mis- You would not be so scrupulous and so self and your family. For too many management has put our country’s se- careful about what the law provides if Americans, this promise is out of reach curity at risk, Democrats will stand you did not care about following the today. We must ensure that it is within with our troops and step up efforts law. That has been what these individ- their grasp. against terrorists by targeting and uals and this administration and this We must expand economic oppor- Government have tried to do under shutting down the institutions that create them. Where Republicans have tunity for all Americans by protecting very difficult circumstances. American workers and ensuring that In conclusion, I hope our disagree- stood with big corporations and put the needs of the special interests ahead of we are creating good jobs for today and ments about some aspects of our Na- for the future. Our plan creates new tion’s foreign policy, our policy in Iraq, the American people, Democrats will work to expand opportunity for fami- jobs with an expansion of infrastruc- should not be license to distort the ture programs, encourages innovation, facts and impugn the character of lies by bringing down health care costs, strengthening education, and creating and ensures fair wages. It also elimi- these nominees. Three are nominees, nates tax incentives for companies that one already has been confirmed. We good-paying jobs. Democrats will promote fiscal re- move jobs overseas. It ensures that we know Mr. Haynes has been renomi- enforce our trade policies. nated by the President to serve as a sponsibility in Washington with a re- The Stabenow-Corzine bill ensures circuit judge. We know Condoleezza turn to commonsense budgeting. But fair wages for our American workers. It Rice’s nomination to be Secretary of our most urgent priority is to protect restores overtime wages to 6 million State will be debated tomorrow in the our Nation’s security. That is why we workers and increases the Federal min- Senate. will stand up for our troops. We believe imum wage over the next 2 years so Finally, I expect on Wednesday Judge that putting America’s security first that we can ensure a livable wage for Alberto Gonzales will be voted out of means standing up for our troops and every American worker. These are the the Judiciary Committee and that their families. We will work to increase people who serve our food and stock nomination will soon come to the Sen- our military end strength by up to the shelves of our local grocery stores, ate. 40,000 by 2007, and we will create a care for our children and our elderly It appears the opponents of this ad- Guard and Reserve bill of rights to pro- parents, and it is incredibly important ministration and its policies will pass tect and promote the interests of our that we honor, respect, and support no opportunity to continue to repeat dedicated citizen soldiers. That in- them and the dignity of work. false charges which cannot be borne cludes making sure our troops have the out by the facts and which I think need body armor and equipment they need It also provides relief to multi-em- to be corrected. and that their families receive health ployer pension plans to make them I yield the floor and suggest the ab- care and their pay on time while their more solvent. These plans are used pre- sence of a quorum. loved ones are serving abroad. This bill dominantly by small businesses to pro- The PRESIDING OFFICER. The would increase survivor benefits from vide pension benefits to an estimated clerk will call the roll. $12,000 to $100,000 for their families, if, 9.7 million American workers. The The legislative clerk proceeded to God forbid, a loved one loses his or her Stabenow-Corzine bill creates good call the roll. life while serving our country. jobs for today and new jobs for the fu- Mr. STEVENS. Mr. President, I ask We will also target the terrorists ture, with an expansion of infrastruc- unanimous consent that the order for more effectively. We will keep America ture programs and the encouragement the quorum call be rescinded. secure by stepping up the fight against of innovation. The PRESIDING OFFICER. Without the radical terrorists. We will work to Across America, thousands of infra- objection, it is so ordered. increase our special operations forces structure projects, from our smallest (The remarks of Mr. STEVENS per- by 2,000 to attack the terrorists where rural communities, to our biggest cit- taining to the introduction of S. 49 are they are and to protect our freedoms ies, await the Capitol to move forward. printed in today’s RECORD under here at home. Making these investments in our roads, ‘‘Statements on Introduced Bills and Democrats are also united to ensure bridges, and buses, will enable our Joint Resolutions.’’) that the world’s most dangerous weap- quality of life to improve and protect Mr. STEVENS. Mr. President, I sug- ons stay out of the hands of terrorists. public health and safety. These invest- gest the absence of a quorum. We will expand the pace and scope of ments will also create a huge boost to

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00024 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S131 our economy. For each $1 billion in in- We are losing 2,700 jobs as a result of of manufacturing workers get retrain- vestment, we create 47,000 good-paying that and we, unfortunately, have in- ing, keep their health insurance, and American jobs. centives in the law today that encour- make a new start. This bill will expand We also need to make investments in age that to happen. That is wrong. TAA to cover service workers who lose technology. Too many communities, We need to tackle the issues of their jobs when companies move jobs mostly in rural and economically dis- health care, and we are doing that in overseas. It will also provide health advantaged areas, lack access to our legislation, with a lower cost for coverage for unemployed workers who broadband Internet service. More and prescription drugs and a lower cost of are in training programs so that they more, Internet access is a critical part health care for our businesses. Ulti- can complete their training and help of our economy and our schools. This mately, we cannot compete and have a rebuild communities affected by bill expands broadband access to those middle class in this country if we are outsourcing or exporting jobs, by co- underserved areas by allowing telling everyone they need to work for ordinating Federal, State, and local re- broadband service providers to imme- $1.57 an hour in order to have a job and sources to develop a new plan and a diately deduct one-half of the cost of we will create incentives for their busi- new future for the people who live their investment in equipment to pro- nesses to move to another country. Our there. We have a ceiling of a national vide broadband access to rural and un- bill would require companies to imme- debt, but we don’t have a ceiling on the derserved areas. This is not just the diately pay tax on the profits they earn U.S. foreign debt, or the annual trade right thing to do, it is the smart thing abroad for products that are imported deficits that feed it. That is wrong. It to do. We are a nation of innovators, of back to the United States. We think is irresponsible, particularly if you ideas. The key to our economic that is fair. consider that America is now the strength is our leadership in science The Stabenow-Corzine bill ensures world’s largest debtor nation. and technology. that America has a trade policy that We will have serious consequences if The U.S. is losing ground today to addresses our now record trade deficit our trade deficits continue. In the 109th our foreign competitors. Research and by enforcing our trade agreements, Congress we are going to change that development helps create higher qual- maintaining a level playing field, and and put America on the path of a more ity jobs, better and safer products and helping workers who have lost their responsible approach. Our bill will re- higher productivity among American jobs due to unfair labor practices of quire the administration to convene an businesses. other nations. We are determined to emergency interagency meeting and It makes permanent a tax credit for pursue a trade policy that protects provide Congress with a trade deficit entities that increase their research American workers and addresses our reduction plan, to lower debt levels activities, which is so critical; and it record trade deficit. below the statutory ceiling, whenever makes credit available for collabo- This bill requires the administration the overall foreign debt reaches 25 per- rative partnerships, for research done to identify the most important export cent of our GDP or when the annual by a group of businesses or other enti- markets that remain closed to U.S. trade deficit reaches 5 percent of GDP. ties. We also want to ensure that we products and provides the tools needed Another component of expanding op- continue to lead and educate future to open them. As I have said so many portunity for everybody is to provide leaders in science and technology. times, if we create a level playing our children with the best education Our bill also supports increases in field—all we ask for are the same rules. possible. We talk a lot about that. We federally funded research at the Na- If we have the same rules for our busi- have an opportunity in the 109th Con- tional Science Foundation, the Office nesses and our workers that we see in gress to put in place those opportuni- of Science at the Department of En- other countries, we will compete and ties and mean it for our children. ergy, the National Institutes of Health, we will win. But it is our job to make That is why we are going to keep our and the National Institute of Science sure that happens. That is why this promise to our children by increasing and Technology, as well as investments legislation also creates the office of support for preschool education, fully in math and science and technology chief enforcement investigator/nego- funding No Child Left Behind, and im- programs at our secondary education tiator, whose sole responsibility will be proving its implementation. institutions. to police our trading partners’ perform- We are committed to finally meeting The Stabenow-Corzine bill eliminates ance of their obligations. the Federal commitment to children tax incentives for companies that move This bill will force China to stop ma- with disabilities. How long have we jobs overseas—a critically important nipulating its currency and force China talked about that on the Senate floor? feature today for workers in every to choose between revaluing its cur- We will also address the shortfall of State, and I would certainly say in my rency to its market value or face a math, science, and special education State of Michigan, where we make tough tariff on all Chinese imports to teachers by creating tuition incentives things. We make things and grow the United States, equal to the unfair for college students to major in these things and do it well, and we don’t trade advantage China currently en- critical fields. We will help expand edu- want to see incentives in our Tax Code joys. cational opportunities for college by for companies to move jobs overseas. Let me give you an example of what providing relief from skyrocketing col- We must eliminate tax incentives I think is important. There are many lege tuition, increasing the size and ac- that actually give companies a tax in- in Michigan, but let me share this. I cess to Pell grants, and supporting centive to move production facilities met with a group of people from Rexair proven programs that encourage more and jobs overseas. It doesn’t make Company in Cadillac, MI, a couple of young people to attend and succeed in sense to reward a company for moving weeks ago. They produce vacuum college. jobs overseas and, in effect, for pushing cleaners. The company’s vice president We will also work to make health the promise of America farther away, claimed that the Chinese-made motors care more affordable. Spiraling health farther out of reach. for the vacuum cleaners are cheaper care costs are putting the opportunity Let me give you an example. In because of currency manipulation. The of America at risk, making it harder Greenville, MI—I have spoken about motor is $28.80 in the United States and for families to buy health insurance Greenville many times on the floor—is $21.30 in China. The company would and placing a difficult burden on our Electrolux. In Greenville, MI, they had prefer to use U.S.-made motors, but small and large businesses, our manu- three different shifts going and added they have to go with the lower cost al- facturers, certainly. over $100 million in new investments in ternative in order to be competitive. We will address these concerns by equipment at the Greenville Electrolux There is no reason for that difference, making prescription drugs more afford- plant. They are efficient, effective, and except for currency manipulation. able. How often have I spoken about they are doing the job. They are selling When jobs are moved overseas it this on the Senate floor? We will make refrigerators. Electrolux decided they doesn’t just hurt individuals, it hurts prescription drugs more affordable could make a bigger profit if they families, communities like Greenville, through the legalization of prescription moved the plant to Mexico and paid MI, and it hurts all of us. Trade adjust- drug reimportation—in other words, al- $1.57 an hour and no health benefits. ment assistance has helped thousands lowing the pharmacists in America, in

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00025 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S132 CONGRESSIONAL RECORD — SENATE January 24, 2005 Michigan, to do business with phar- tion equipment and increase impar- was a debate on the Senate floor about macists across the border in Canada tiality and provides the resources to the cost of prescription drugs. It was a and in other places where we know it our States to implement the bill. lengthy debate, and it involved a lot of can be done safely. While our agenda is ambitious, we concern about the fact that a lot of In our legislation, we will be making have a plan to pay for every single ini- senior citizens find the life-protecting sure prescription drugs are safe by en- tiative we are proposing at the begin- drugs they are taking to be too expen- suring that drugs are monitored after ning of this session, our vision of keep- sive. they are approved for use. We will en- ing America’s promise. We have known for a long time that sure all children and pregnant women Unfortunately, in the past 4 years, Medicare, a very valuable Federal Gov- will have health care. We understand colleagues on the other side of the aisle ernment program, has been more than how critical it is that we protect Med- and the administration have turned a miraculous in its results. When it was icaid and work with the States across large surplus, in fact the largest sur- instituted during the term of President this country to make sure that health plus in the history of the country, into Lyndon Johnson, there was hope it care is available through Medicaid. the largest debt. We know that fiscal would help seniors pay for their med- We will also reduce the growing cost mismanagement today only leads to ical bills and improve the quality of of health care to small businesses by greater problems for our children and their lives. It has done that and more. offering tax credits, while also modern- our grandchildren. It is our responsi- It has become an extremely valuable izing health care to cut costs for pa- bility to address the fiscal irrespon- program because seniors have used tients and businesses. sibility of the current administration Medicare for access to doctors and hos- While we are lowering health care by imposing discipline today and we in- pitals, and the proof is in longevity. costs, we are going to revamp the last vite our colleagues on the other side of Seniors are living longer. They are get- Congress’ Medicare bill—if we have the the aisle to make that a new priority, ting better medical care. It was truly opportunity to do so, that is certainly a fresh priority, in this new Congress. one of the best Government programs our wish as Democrats—and take the We are united to strengthen our budg- ever created, but there was a gap in special interests out of the Medicare eting rules that require the Govern- those programs. It didn’t cover pre- bill by repealing the provision that ment to live within its means. scription drugs for those who were not makes no sense at all that prevents The bottom line is that we today, the in the hospital. So seniors found that Medicare from negotiating the best first day, we can introduce bills in the new drugs that kept them healthy and possible price for our seniors. new session, have come together as out of the hospital were too expensive. While we will eliminate the slush Democrats to put forward our vision of Some couldn’t take the drugs because fund for HMOs, we will also improve keeping the promise of America. It is they couldn’t afford them. Others had the prescription drug benefit by phas- rooted in security. We must be safe. to make terrible life choices between ing out the current coverage gap where Our families must be safe. We must their lifesaving drugs and basic neces- seniors pay a premium but do not get a make sure we are providing all that we sities of life. benefit. must for our troops and those who have For a long time we have talked about I am told that if, in fact, we nego- served us and are now our veterans. establishing under Medicare a prescrip- tiated in Medicare the same price cuts We are also committed to creating tion drug program that would help that we do through the VA for the vet- opportunity for everyone who works these seniors—and disabled people, who erans, we would not have a gap in the hard and plays by the rules, cares also qualify under Medicare. The de- Medicare prescription drug law at all. about their children, to create oppor- bate got started, and it looked prom- There would not be a gap in benefit. We tunity to be successful. We want every- ising. There was the belief that we need to make that change so our sen- one to dream big dreams and be able to were finally moving to a goal that we iors have the very best possible Medi- reach for the stars and touch them and have talked about for a long time. Un- care prescription drug benefit. be successful within the American fortunately, during the course of the We as Democrats will work to lower dream. debate there were political forces at Part B premiums so premium increases We also understand that when we work in Washington. That is not un- are not as steep as the one that took create opportunity, with that comes usual. The largest political force at effect in January. We will address in- responsibility. We each have responsi- work was the pharmaceutical drug in- centives that encourage employers to bility to step up and work hard, but we dustry. They understood that if we drop retiree benefits and ensure that also know we have responsibility for gave to Medicare the power to bargain our seniors will not be forced into each other. We have responsibilities as for senior citizens in America, that HMOs while other seniors transition parents to our children to create the power would force the drug companies into a new benefit. security they need, the opportunity to reduce their cost, so the pharma- In the United States, the foundation they need, and to instill responsibility ceutical companies, one of the most of our incredible democracy is the fun- in them, and that as a community we powerful lobbying organizations in damental right to vote. That is another have responsibility one to another, just Washington, successfully lobbied the important part of the legislative pack- as we do for our family, and our coun- Bush administration and supporters of age we have put forward today. It does try has a responsibility to make sure the bill to prohibit Medicare from cre- not matter if one is rich or poor, black, those opportunities are present. ating a drug benefit program under brown or white, all Americans have the This is an important day. It is the be- Medicare which would hold the drug right to one vote. It is the great equal- ginning of the new session, a new op- companies accountable for cost in- izer. When one is voting and walks out portunity. We stand ready to work creases. of the voting booth, each one of us with the administration and our col- They got the best of both worlds. walks out as an equal. Unfortunately, leagues on the other side of the aisle to They not only could continue to sell we have had major problems in our vot- truly keep the promise of America, not expensive drugs to seniors, there is no ing systems in the last few elections, just for some but for everyone in our pressure on them to reduce the cost. as we all know. We have determined, as country who is working hard every day Drug companies are very profitable, Democrats, to reform the voting sys- and counting on us to make sure that and they understood that with this tem in this country to create Federal dream is available and that promise is change in the law, they would continue standards for our elections and to be kept for them and their families. to make enormous sums of money off able to add verification, account- I yield the floor. of seniors and the Government for a ability, and accuracy to this system. The PRESIDING OFFICER. The Sen- long time to come. Together we should be moving as ator from Illinois. Some of us who voted against the quickly as possible to do this. f program as presented by the President Our legislation increases access to suggested that, unless there was some the polls with election day registra- PRESCRIPTION DRUGS cost containment here, this program tion, shorter lines, early voting. The Mr. DURBIN. Mr. President, many would break the bank; it would cost bill also aims to modernize our elec- people recall that over a year ago there too much; drug prices would go up, and

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I have sat down she: through Medicare and negotiating bulk with seniors in Illinois and tried to ex- wished Medicare would come up with some- prices, we divided the country into 34 plain to them what this prescription thing that would be easier for people to un- pharmaceutical regions. This is a map drug plan was all about, and after a derstand and use. that shows these regions. We are going while they threw up their hands and That is not an unreasonable request to have to spend $300 million to explain said: Senator, wasn’t there an easier from Mrs. Mitchell. In her words, she to seniors what region they live in and way to do this? And the honest answer went on to say: who is going to offer prescription drug was: Yes, but we didn’t choose that If it’s too much work and too much stress, coverage in each of these regions. easier way. at my age it’s not worth it for me to just Do you remember when there was a save a couple of dollars. Because of some budgetary consider- discussion about the Clinton proposal ations and political considerations, we That is what many senior citizens for dealing with the cost of health have found. As this administration created an extremely complicated pro- care? Senator DOLE and others came to came forward with discount cards and gram for senior citizens. That program the Senate floor with this flowchart prescription drug benefits, a lot of ultimately did not reach a point where which showed a spaghetti mess of lines seniors approved of it. In fact, most of them have said it is not going to work. When you take a hard look at the going every single direction. That ap- the seniors in Illinois who I talked to philosophy driving this complicated plies as well to this prescription drug are not only skeptical of this program, bill, protecting this private interest benefit from the Bush administration. they are critical of it. They are not group, you get further insight into the Each of the 34 regions on the map that sure it would really help them. concept of the ownership society. This I just showed you will have at least 2 The administration—the President— is the new concept. This is the brave private options for prescription drugs, was very smart. He decided to postpone new world we are hearing about, which either a prescription drug plan or an the startup of this program until after says that basically the Government HMO. If there are two plans in each re- the last election. He knew, and I am should not be making certain that gion, it means instead of the Secretary sure we all do now, that when this pro- there is competition for these drug of Health and Human Services negoti- gram starts a lot of seniors are going companies. Let them own their prod- ating on behalf of 41 million seniors for to see just how bad it is, how com- ucts. Let them sell their products. The lower drug prices, pharmaceutical com- plicated it is, how uncertain it is, and Government should not be standing in panies will be negotiating with 68 pri- because of those uncertainties many of the shoes of the senior citizens who vate companies on behalf of seniors. them will be critical of the Congress need these prescription drugs, under- Think about your negotiating power that enacted the law and the President standing the complexity of the system at the table when you divide the num- who presented it to us for enactment. ber of seniors by 68 instead of having So at this point we have a problem and the cost of the system. No, no, the Government should step aside. Let the Medicare bargaining on behalf of all 40 before us, a program that is about to million-plus seniors. Simple economics go into effect which has uncertain seniors own the program. I believe a lot of seniors are going to tells you, you lose your negotiating monthly premiums, has a so-called disown the program. The President power when the number of people you donut hole, which means it covers tells us that turning America into ‘‘an are representing goes down, as the drugs up to a certain point in their ownership society’’ will solve our re- power of the pharmaceutical compa- cost and then leaves the individual sen- tirement security problems. Just pri- nies goes up. ior citizens on their own for a period of vatize part of Social Security and give What is worse is that private plans time as they spend the money out of Medicare beneficiaries a voucher so can change their drug formularies after pocket and then comes back to cover they can buy private prescription drug seniors sign up, but the seniors are them again. It also has some curious coverage and the problems are solved. locked into it. That is right. If you de- provisions where seniors cannot buy But I think seniors see through this. cide you need to sign up for a prescrip- supplemental insurance to make up the They understand that what they are tion drug plan the President is pro- deficiencies in the prescription drug hearing from the administration about posing, and one of these companies de- bill. They are banned, prohibited. It Social Security and Medicare does not cides it is going to stop carrying the also expressly says Medicare cannot give them peace of mind. If there are drug that the doctor told you that you create its own prescription drug com- challenges in Social Security, they are needed, you are still stuck with that pany and bargain for senior citizens— in the distant future, as I said in an prescription drug program you signed once again to protect the profitability earlier floor statement: 37 years from up for. So if you do your research and of pharmaceutical companies. now. If we are to make changes, they decide on a plan in your area because it As bad as this bill was, we were wait- should be changes that don’t cut the offers a low price for a drug you are ing for the regulations written by the benefits for Social Security retirees taking, you are locked into that plan, Bush administration which would spell and beneficiaries. They should not cre- but it can drop coverage of your drug out the details of how this process will ate an additional national debt of $2 during the year. work. Last Friday the Bush adminis- trillion or more, but that is the projec- The regulations released on Friday tration released 1,500 pages of new tion coming out of the President’s sug- also govern bidding by HMOs wanting rules and regulations related to the gestions. to contract with Medicare. The HMOs new Medicare prescription drug pro- We will wait for the details. In fair- are divided into 26 regions. Although gram—1,500 pages. I can remember ness to the President, he should most seniors are happy to receive their when President Reagan showed up for present this to us in its entirety. It is benefits directly through Medicare, we the State of the Union Address with a an interesting theory to think that we will spend $14 billion over the next 10 huge copy of a bill we had just passed, can start privatizing Medicare, Social years to expand coverage by HMOs. an appropriations bill, slamming it on Security, Medicare prescription drug The Republicans who passed this ar- the desk saying what an embarrass- programs, but here is the reality: 1,500 gued that the HMOs and private insur- ment it was to the American people pages of regulatory gobbledygook, big ance companies could do things more that we would have a bill of such com- guaranteed profits for the pharma- effectively and efficiently. plexity and magnitude. Here we have ceutical industry and the HMOs and in- Yet we have built into this proposal the regulations for the prescription surance companies, and precious little a Federal subsidy of millions, if not drug bill, an already complicated bill, savings for people like Sally Mitchell billions, of dollars to the HMOs to re- 1,500 pages in length. When you look at of Aurora, IL. ward them for competing. Something is

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Why is it we can’t do the enthusiasm and confidence to match. subsidize it so they can compete with same thing for Medicare? It is just that Kelvin Peterson, a good friend remem- whatever Medicare has to offer? simple. bers him as always being able to put a PacifiCare CEO Howard Phanstiel The fact that we didn’t is the reason smile on people’s faces. Kelvin said, told Bloomberg News over the week- the administration last Friday had to ‘‘He knew how to make a person laugh end: ‘‘We are encouraged that CMS put 1,500 pages of regulations together and have a good time, because that’s continues to demonstrate its commit- on an already complicated bill to try to what he was all about, having a good ment to be a good business partner explain the Medicare prescription drug time.’’ with the private sector.’’ But isn’t it benefit that is, frankly, not what it PFC Becker served our country and, Government agencies’ first obligation should be. We started off understanding as a hero, died as a proud member of to seniors and the citizens of this coun- the need. We passed a bill that didn’t our Armed Forces. He served as a try rather than to the businesses that meet that need. Now, in the name of model of the loyalty and dedication will profit from this new arrangement? the ownership society, we are saying to that comes with preservation of free- Let us take a look at Mr. Phanstiel people: You own the right to be vir- dom. The thoughts and prayers of my and his colleagues in the HMO indus- tually defenseless in bargaining with family, as well as our Nation’s, are try. He made more than $3 million in pharmaceutical companies and HMOs. with his family during this time of the year 2003, the year we passed the Is that what we are here for—to mourning. As well, our thoughts con- Medicare bill. As a result of this bill, make certain their profitability goes tinue to be with all those families who many companies and many others like through the roof at the expense of sen- have children, spouses, parents, and it will probably make even more be- iors who can’t afford lifesaving drugs? I other loved ones serving overseas. cause Mr. Phanstiel’s company will don’t think so. PFC Becker lived life to the fullest have access to some 700,000 Medicare The time will come—and I hope and was committed to his family, his beneficiaries in addition to the ones he soon—when we will have reforms of Nation, and his community. It was his currently serves. this Medicare prescription drug pro- incredible dedication to helping others When you look at compensation, the gram. When we do, let us keep our first that will serve as his greatest legacy. CEO of Aetna, $8.9 million; Larry obligation to our seniors. Our Nation is a far better place because Glassock’s compensation, $6.8 million. I yield the floor. of PFC Becker’s contributions, and, Here is one CEO who earned $21.6 mil- while his family, friends, and Nation lion. Look at what these HMO CEOs f will miss him very much, the best way are making. And now we are not going HONORING OUR ARMED FORCES to honor his life is to remember his to cut into their profits but increase commitment to service and his family. SERGEANT THOMAS EUGENE HOUSER them. I join with all South Dakotans in ex- When Mr. Phanstiel sent this nice Mr. GRASSLEY. Mr. President, I rise pressing my sympathies to the friends thank-you note to CMS, a Federal in remembrance of a brave Iowan who and the family of PFC Becker. I know agency, and said they are continuing to has left his countrymen to join the that he will always be missed, but his demonstrate their commitment to be a ranks of those who have paid the high- service to our Nation will never be for- good business partner, it means even est price in the defense of freedom. Ser- gotten. geant Thomas Eugene Houser was a na- more money and profits for the HMOs SPECIALISTS JIMMY BUIE, JOSHUA MARCUM AND tive of Council Bluffs, IA and was at the expense of senior citizens. JEREMY MCHALFFEY When it comes to pharmaceutical killed on January 3, 2005, in action Mrs. LINCOLN. Mr. President. I rise companies, this chart tells you what against enemy forces in the Al Anbar today to honor the lives of three brave happened to the Fortune 500 companies Province of Iraq. He was twenty-two Arkansans and to pay tribute to the in America. This is the analysis of the years old. sacrifice they made on behalf of our 2002 profits. Look, if you will, at the re- An active young man, SGT Houser freedom. Jimmy Buie, Joshua Marcum, turn on revenues. The No. 1 industry, participated in football, wrestling, and and Jeremy McHalffey were all beloved pharmaceuticals; return on assets, No. track while attending St. Albert’s by their families, admired by their 1 industry, pharmaceuticals. Catholic High School and is remem- friends, and respected within their When you turn on the television and bered by his family and friends as a communities. Today, they are remem- you can’t escape another ad for the compassionate soul who, as his mother bered as heroes by the grateful Nation ‘‘little purple pill,’’ let me tell you that says, could ‘‘talk to anyone.’’ As a boy, for whom they gave their lives. company is spending more money on he dreamed of following in the tradi- SPCs Buie, Marcum, and McHalffey advertising than it is on research to tion of military service set by his fa- were proud members of the Arkansas find new drugs. They are trying to cre- ther and grandfather, a dream which he National Guard’s 39th Infantry Bri- ate an appetite and desire among fulfilled courageously as a member of gade. Together, they served with the American consumers to buy drugs they the 1st Marine Division. 2nd platoon of Bravo Company, 3rd don’t need; too expensive drugs, I I ask my colleagues to join me and Battalion of the 39th, a close-knit might add. In this situation, you are all Iowans in remembering SGT group who quickly earned a reputation going to find pharmaceutical compa- Houser. My prayers go out to his fam- for dependability and whose soldiers nies doing even much better because ily and friends who feel his loss so were known to do absolutely anything the Medicare prescription drug plan deeply. Such men as Thomas Houser for each other. This was especially true says they don’t have to compete. inspire us to hold in ever higher esteem for SPC Marcum, SPC McHalffey, and Is the idea of asking drug companies the ideals of freedom and service. His SPC Buie, who were all roommates at to reduce their costs to help people valor shall certainly not be forgotten. their company’s base at Camp under Federal programs a radical, So- PRIVATE FIRST CLASS GUNNAR BECKER Gunslinger, just north of Baghdad. cialist, Communist, collectivistic idea? Mr. JOHNSON. Mr. President, I rise It was obvious to those who served I don’t think so. Go to the Veterans’ to pay tribute to PFC Gunnar Becker, with them that in addition to being Administration. That is exactly what a member of the United States Army, outstanding soldiers, these three men they do. They call in the drug compa- who died on January 13, 2005, while were so much more. While the easy- nies and say: We have a lot of veterans serving in Operation Iraqi Freedom. going SPC Buie and SPC Marcum could in America who are going to VA hos- PFC Becker was a member of the 63rd always be counted on to brighten a pitals to pick up their drugs through a Armored Regiment, 1st Infantry Divi- mood with their humor and infectious program we are offering. If you want to sion. smiles, the hard-charging SPC

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00028 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S135 McHalffey often motivated his col- if you ever needed to find him during Army PVT Cory R. Depew, 21 years old, leagues with his determination and hunting season, he was most likely in died on January 4 when the Stryker focus. While the three had differing ap- the woods with his father, looking for military vehicle he was riding in was proaches to their service, they were turkey or deer. At the age of 18, he struck by rocket-propelled grenades united in the belief that they were joined the United States Marine Corps, just west of Mosul, Iraq. With his en- doing what was right; helping rebuild and would proudly serve for 4 years. tire life before him, Cory risked every- the lives of a people they had never Upon his return to Springfield, he thing to fight for the values Americans met and bringing stability to a nation worked for the Greene County Sheriff’s hold close to our hearts, in a land half- they had never known. Office and later for Showcase Building way around the world. SPC Buie joined the military upon Supply. In 2002, he met a dispatcher After graduating from high school, his graduation from high school in 1980. named Lacy Tindele at a firefighters’ Cory went on to pursue a dream he had Later, while working for a dental prod- training camp. The couple quickly fell been working toward since he was in ucts manufacturer, he met a woman in love and their engagement soon fol- the eighth grade. In September of 2003, named Lisa who would become the love lowed. Cory made his dream a reality by en- of his life. The two were inseparable, SPC McHalffey’s deep love for his listing in the United States Army. and the natural chemistry between country is what originally motivated Cory’s mother, Sheryl Ann, recalled them soon led to marriage. SPC Buie him to enlist in the Marine Corps and her son’s determined spirit when quickly took to Lisa’s two sons and it is also what later motivated him to speaking to the Indianapolis Star say- found great pleasure in spending time serve in Iraq. As his brother Mike re- ing, ‘‘He was going to the military, he with them, whether they were building flected, ‘‘He was the type of guy to vol- wanted to serve his country. . . . He a go-cart or playing catch. unteer. If something needed to be done, was a hero. He gave his life for this In his hometown of Batesville, SPC Jeremy would jump in.’’ SPC country.’’ Buie worked as a mechanic at Mark McHalffey initially wanted to re-enlist Cory was the 44th Hoosier soldier to Martin Ford Mercury, where he right- in the Marines but was told the process be killed while serving his country in fully earned the reputation of a quiet, could take months. As a result, he and Operation Iraqi Freedom. He was as- hard-working guy who always got the Lacy chose to move to Little Rock, to signed to the 2nd Squadron, 14th Cal- job done. He joined the National Guard continue his career in law enforcement vary Regiment, 1st Brigade, 25th Infan- in August of 2004 and was deployed to and to join the Arkansas National try Division, based in Fort Lewis, Iraq after spending a month of training Guard, because he was told it had a sig- Washington. This brave young soldier at Fort Hood, Texas. While serving in nificantly shorter waiting time. The leaves behind his mother, Sheryl Ann Iraq, he spoke with Lisa every Sunday couple chose the nearby community of May; his son, Brendan Favre; his broth- evening. During these conversations, Mabelvale, where SPC McHalffey com- ers, Wyatt and Elliot; and his grand- he always remained upbeat and spoke muted to his new job as a detention father, Austin Hall. of the joy he found in improving the deputy at the Pulaski County Jail Today, I join Cory’s family, his lives of Iraqis, particularly the local until his deployment. Lacy spent much friends and the entire Beech Grove farmers, whom he pitied for their poor of her time planning the couple’s small community in mourning his death. living conditions. These words and ac- wedding, which was to take place upon While we struggle to bear our sorrow tions spoke volumes of SPC Buie, a her fiancee’s return from Iraq in a few over this loss, we can also take pride in humble man who found comfort in months. the example he set, bravely fighting to knowing folks were praying for him The lives of these three Arkansas sol- make the world a safer place. It is his back in Arkansas, and who used that diers was forever intertwined when, courage and strength of character that inspiration to improve the lives of tragically, they were killed on January people will remember when they think those around him. 4 when their humvee was struck by a of Cory, a memory that will burn SPC Marcum was from the small roadside bomb. Their vehicle, which brightly during these continuing days northern Arkansas town of Evening was traveling as part of a convoy, was of conflict and grief. Shade, where he lived with his wife, leaving an Iraqi National Guard bunker Cory was known for his dedication to Lisa, and their five children. Friends in the al-Shaab district of Baghdad. family and his love of country. When and family describe him as one of the The loss of these heroes will be felt by reflecting on Cory’s life, his mother nicest people you could ever meet, a not only their comrades in Iraq, but by told the Indianapolis Star that her unique individual who disliked cursing, the many friends and loved ones they son’s best attributes had been on dis- avoided arguments, and had a special have left behind. play while he was home on a two-week calming effect on those around him. He At the memorial service of SPC leave only a few months ago, ‘‘his ‘wise was also the type of person who found Marcum, Linda Beckham reflected on guy’ sense of humor, his love of chil- pleasure in bringing joy to others; a her brother; ‘‘He wanted to honor his dren, his hard work.’’ During his short gift of his that was attributable to his country. It was his dream and he ful- break, Cory spent time playing with sense of humor and his loving heart. filled it.’’ These words ring true not his son, Branden and volunteered to While serving in Iraq, SPC Marcum, only for SPC Marcum, but also for SPC help build a new garden at his church, who had always wanted to be a soldier, McHalffey and SPC Buie. The coura- a place where his mother and many was remembered by his comrades as a geous and selfless way in which they others now go to find solace. Today and quiet guy who naturally went out of served in uniform brings honor to our always, Cory will be remembered by his way to lend a helping hand to those Nation. The impassioned and generous family members, friends and fellow in need. He kept in frequent contact way in which they led their lives, Hoosiers as a true American hero and with his wife throughout his deploy- brings honor to us all. we honor the sacrifice he made while ment and sought to comfort her by On behalf of a grateful Nation, my dutifully serving his country. keeping her up to date on his welfare thoughts and prayers go out to the As I search for words to do justice in and relaying his positive experiences family and friends of Jimmy Buie, honoring Cory’s sacrifice, I am re- along the way. With his time in Iraq Joshua Marcum, and Jeremy minded of President Lincoln’s remarks nearing its end, he was looking forward McHalffey. Although they may no as he addressed the families of the fall- to returning to his friends and family longer be with us, we must find some en soldiers in Gettysburg: ‘‘We cannot back in Arkansas and often spoke of solace knowing that they died for a dedicate, we cannot consecrate, we taking a float trip down the Spring cause in which they believed. Their leg- cannot hallow this ground. The brave River soon after. acy and their spirit will forever live on men, living and dead, who struggled SPC McHalffey was born in the small in our hearts. here, have consecrated it, far above our northeastern Arkansas town of ARMY PRIVATE CORY R. DEPEW poor power to add or detract. The Paragould but later moved to Spring- Mr. BAYH. Mr. President, I rise world will little note nor long remem- field, MO, where he graduated from today with a heavy heart and deep ber what we say here, but it can never high school in 1995. Throughout his sense of gratitude to honor the life of a forget what they did here.’’ This state- life, he had a love for the outdoors and brave young man from Beech Grove. ment is just as true today as it was

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00029 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S136 CONGRESSIONAL RECORD — SENATE January 24, 2005 nearly 150 years ago, as I am certain of Eric, a memory that will burn the U.S. market. The International that the impact of Cory’s actions will brightly during these continuing days Trade Commission has found repeat- live on far longer than any record of of conflict and grief. edly that the unfair imports threaten these words. Eric was known for his dedication to our industry with harm. It is my sad duty to enter the name family and his love of country. Today President Bush was well prepared to of Cory R. Depew in the official record and always, Eric will be remembered answer the Canadian Prime Minister of the United States Senate for his by family members, friends and fellow when they last met. The President told service to this country and for his pro- Hoosiers as a true American hero and the Prime Minister that the problem of found commitment to freedom, democ- we honor the sacrifice he made while subsidies and dumping is caused by racy and peace. When I think about dutifully serving his country. Canada, and the solution lies with Can- this just cause in which we are en- As I search for words to do justice in ada, unless Canada wants the solution gaged, and the unfortunate pain that honoring Eric’s sacrifice, I am re- to be permanent duties to offset the comes with the loss of our heroes, I minded of President Lincoln’s remarks subsidies and the dumping. In over two hope that families like Cory’s can find as he addressed the families of the fall- decades, Canadian officials have not comfort in the words of the prophet en soldiers in Gettysburg: ‘‘We cannot gotten the message, at least not in a Isaiah who said, ‘‘He will swallow up dedicate, we cannot consecrate, we way that takes, that this problem will death in victory; and the Lord God will cannot hallow this ground. The brave not be resolved by Canada’s investing wipe away tears from off all faces.’’ men, living and dead, who struggled hundreds of millions of dollars in legal May God grant strength and peace to here, have consecrated it, far above our fees on more than 30 Washington law those who mourn, and may God be with poor power to add or detract. The firms to circumvent U.S. laws in count- all of you, as I know He is with Cory. world will little note nor long remem- less appeals to the WTO, to NAFTA LANCE CORPORAL ERIC HILLENBURG ber what we say here, but it can never panels and to the U.S. courts—several Mr. BAYH. Mr. President, I rise forget what they did here.’’ This state- more were filed just this month. And it today with a heavy heart and deep ment is just as true today as it was will not be solved by the cottage indus- sense of gratitude to honor the life of a nearly 150 years ago, as I am certain try that has grown up in Canada to brave young man from Hendricks that the impact of Eric’s actions will mount PR campaigns in the United County. LCpl Eric Hillenburg, twenty- live on far longer than any record of States. The U.S. timber industry vigorously one years old, died on December 23 dur- these words. supports the administration’s view ing a patrol when he was struck by It is my sad duty to enter the name that the unfair Canadian lumber prob- small-arms fire in Fallujah. With his of Eric Hillenburg in the official record lem could most appropriately and pro- entire life before him, Eric risked ev- of the United States Senate for his ductively be resolved through negotia- erything to fight for the values Ameri- service to this country and for his pro- tions—although perhaps there just cans hold close to our hearts, in a land found commitment to freedom, democ- ought to be permanent duties in place. halfway around the world. racy and peace. When I think about But the U.S. timber industry is taking After graduating from Chapel Hill this just cause in which we are en- the statesmanlike high road, and I sup- Christian School with honors, Eric gaged, and the unfortunate pain that went on to become a Marine, a dream port it. Some vested interests in Can- comes with the loss of our heroes, I ada do not see this, and prefer endless he first set his sight on at the young hope that families like Eric’s can find age of 14. According to family and litigation, probably based on misguided comfort in the words of the prophet advice that this will be productive friends, Eric followed a long-standing Isaiah who said, ‘‘He will swallow up tradition of service as his family has from those who have made a living de- death in victory; and the Lord God will fending Canadian subsidies. proudly served our country in every wipe away tears from off all faces.’’ Mr. CRAPO. Specifically, the prob- conflict since the Civil War. When re- May God grant strength and peace to lem remains that the market is grossly flecting upon the loss of his son to those who mourn, and may God be with distorted by Canadian unfair trade members of his congregation at Hope all of you, as I know He is with Eric. practices. Absent termination of or an Baptist Church, Rev. Hillenburg ex- f offset to the unfair practices, the U.S. pressed his deep sense of pride and pa- timber industry will be severely im- triotism saying, ‘‘When I see that flag CANADIAN SOFTWOOD LUMBER DISPUTE pacted by subsidized and dumped Cana- flying from now on, it will mean more dian imports. We in the Congress have to me than ever before. . . . When I see Mr. CRAIG. Mr. President, I rise been assured that those responsible in a young man in uniform, he will be my today to discuss the latest develop- the administration will not allow this son.’’ According to the Indianapolis ments regarding the Canadian softwood further injury to our industry occur. Star, the congregation stood and ap- lumber dispute. With yet another curi- A solution can be either border meas- plauded these heartfelt remarks. I ous and ultimately inconsequential ures imposed by the United States or stand here today to express the same lumber unfair trade determination due Canadian border measures agreed to sentiments of gratitude for Eric’s sac- today at the behest of a NAFTA dis- with the United States pending ade- rifices and for those made by the entire pute panel, it is important to place this quate Canadian timber policy reforms. Hillenburg family on behalf of our matter in proper perspective. The Bush administration has con- country. Would the distinguished Senator cluded that the November 2004 deter- Eric was the 43rd Hoosier soldier to from Montana and my colleague from mination of the International Trade be killed while serving his country in Idaho engage in a colloquy with me Commission that Canadian imports Operation Iraqi Freedom. He was as- concerning the Canadian softwood lum- threaten the U.S. industry with in- signed to the 3rd Battalion, 5th Marine ber dispute? jury—the ‘‘Section 129’’ determina- Regiment, 1st Marine Division, I Ma- Mr. BAUCUS. I would be pleased to tion—represents an independent basis rine Expeditionary Force, Camp Pen- engage in such a colloquy. authorizing and necessitating reten- dleton, California. This brave young Mr. CRAPO. I would also like to join tion of the countervailing and anti- soldier leaves behind his mother, Pam- my colleagues in a colloquy on this dumping duty orders. The United ela; his father, Jerry; his sister, Erin; matter. States has faith in winning the NAFTA and his brother, Evin. Mr. CRAIG. The Commerce Depart- Extraordinary Challenge Committee Today, I join Eric’s family, his ment has found repeatedly that Cana- proceeding on the injury issue, but friends and the entire Indianapolis dian lumber is subsidized and dumped. even a negative outcome before the community in mourning his death. World Trade Organization and NAFTA committee would not be the end of the While we struggle to bear our sorrow dispute settlement panels have defini- matter. over this loss, we can also take pride in tively rejected Canada’s long-time ar- The Bush administration has con- the example he set, bravely fighting to guments that its underpricing of tim- cluded that duty deposits, amounting make the world a safer place. It is his ber cannot be deemed a subsidy. The to approximately $3 billion and grow- courage and strength of character that panels have also upheld findings that ing daily, cannot and will not be re- people will remember when they think Canadian lumber is unfairly dumped in turned absent a negotiated settlement

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00030 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S137 between the Canadian and U.S. Govern- placement of additional wind capacity minimum period of at least one year; ments. The panels can provide prospec- in the Dakotas. They have generously minimum anemometer height of at tive but not retroactive relief. In any provided funding for similar work for least 40 meters; multiple monitoring event, these funds are rightly due the past two years, and I am glad these points allowing calculation of wind under U.S. law to the injured domestic efforts will be continued during this shear; a defined system interconnec- timber industry. If there is a nego- coming fiscal year. tion point and wind right easements tiated solution, the funds can be appor- North Dakota is the ‘‘Saudi Arabia’’ adequate for the proposed project. To tioned fairly as part of the settlement. of wind. The Department of Energy has make these limited funds stretch far- There is zero likelihood that the long identified North Dakota as having ther, I would expect any proposed countervailing duty, antisubsidy, order the greatest wind energy resource and project to include a 50–50 cost share will disappear absent settlement of the potential for wind generation develop- provision. It is my hope that WAPA lumber subsidy and dumping issues, no ment in the lower 48 States. During my will be able to support projects that matter how often a NAFTA panel tries time in the Senate, I have been pushing will accurately determine the trans- to achieve this outcome. hard on a number of fronts to develop mission requirements and related costs The U.S. right to challenge Canadian our wind energy resources. For exam- associated with the installation of spe- log export restrictions at the WTO is ple, I have been a strong supporter of cific wind and coal generation projects. clear under the WTO, and Canada is the Renewable Portfolio Standard, Following this guidance, it is my ex- clearly in violation of its WTO obliga- RPS, which requires utilities to pectation that WAPA will use this tions. I understand that the Bush ad- produce 10 percent of their electricity funding to make real progress on these ministration is evaluating this issue. from renewable energy sources by 2020. transmission problems in the next fis- I also understand that the U.S. tim- In addition, I believe the Federal Gov- cal year, and provide wider benefits to ber industry intends to bring a con- ernment should be a leader in this area the large region of the U.S. served by stitutional challenge to NAFTA dis- and develop a policy of purchasing WAPA. After all, WAPA was created to pute settlement if the lumber dumping electricity from renewable energy market hydropower, a renewable en- issue is not resolved. The future of U.S. sources. ergy resource. Wind is the next step. sawmills and millworkers cannot be al- Last February, I hosted the Fifth An- f lowed to be ruined by outlandish deci- nual Wind Energy Conference with the sionmaking by NAFTA dispute panels Energy and Environmental Research FISCAL RESPONSIBILITY FOR A and a panelist’s service with an obvi- Center at the University of North Da- SOUND FUTURE ACT ous, undisclosed conflict of interest. kota to further promote this clean and Mr. CONRAD. Mr. President, the Fis- Mr. BAUCUS. I agree completely limitless energy resource. Wind energy cal Responsibility for a Sound Future with my colleagues. As suggested, a stakeholders from around the Nation Act, S. 19, would help restore budget NAFTA dispute panel is requiring that attended this successful event, which discipline and fiscal responsibility to the Commerce Department issue today attracted 436 people from 30 States and our Nation’s finances. Given the Fed- yet another revised version of the three Canadian provinces. Last year, eral budget’s dramatic swing from original 2002 lumber-subsidy deter- the conference included a second day of record surplus to record deficit and mination. Given the panel’s pattern of events because of the overwhelming in- debt over the last few years, it is vital overreaching, it may be a relatively terest in wind energy. As a result of that we restore the strong budget en- low subsidy estimate. If so, this will be the wind energy industry’s growth, forcement mechanisms that have trumpeted in headlines across Canada North Dakota’s skyline and economic worked in the past. as a victory for Canada’s lumber poli- future are forever changing and pro- This legislation would return us to a cies. Before all those editorial writers gressing forward. We will be doing an- path of budget discipline by restoring a seize on this supposed ‘‘victory,’’ they other conference in February 2005, strong pay-go rule, reinstating seques- should understand that this determina- which more broadly embraces renew- tration to enforce pay-go and discre- tion will have absolutely no legal ef- able energy in the Upper Midwest. tionary spending caps, and limiting the fect. It is the Commerce Department’s Despite my continued efforts to in- use of reconciliation to deficit reduc- December 2004 findings of a subsidy of crease the use of wind as an energy tion legislation. over 17 percent and dumping of 4 per- source, North Dakota faces many The first step we should take to put cent that controls. Hyping the January transmission challenges in moving our Nation’s finances back in order is 24 decision as having any meaning per- wind energy to other parts of the coun- to stop digging the hole deeper. Restor- forms a disservice to Canadian inter- try. I have held field hearings in North ing a strong pay-go rule would help to ests, which lie in a mutually beneficial Dakota on these issues and have also do exactly that. This legislation would negotiated settlement. supported the development of new restore the Senate pay-as-you-go rule Nothing can change the facts. The transmission technologies. While the to require that mandatory spending Canadian provinces provide timber to Senate has wisely included funding for and tax legislation be fully paid for, or their lumber companies for a fraction the last several years for WAPA to be subject to a 60-vote point of order. of its value. This harms not only U.S. make some progress on these trans- Pay-go is one of the crucial budget en- sawmills, millworkers and family for- mission problems, the fact remains forcement tools that allowed the Fed- est landowners, but also the Canadian that more needs to be done. WAPA and eral Government to move from deficit forest. Environmental groups have long others have done a number of general to surplus in the 1990s. Unfortunately, decried the overharvesting of timber studies on this issue and I think the the Senate pay-go rule has been weak- caused by undervaluing the resource. next steps are clear. WAPA should use ened in recent years, in order to allow f the funding earmarked in FY2005 for an for passage of large tax cuts. Since Environmental Impact Study, EIS, then, deficits and debt have sky- WIND TRANSMISSION FUNDING that would allow transmission expan- rocketed. Mr. DORGAN. Mr. President, I rise to sion for wind generation to be placed in In 2004, a Democratic amendment discuss funding for a wind transmission North and South Dakota and should was adopted to the Senate Republican study that was included in the fiscal use the remaining funds to support spe- budget resolution that would have re- year 2005 Omnibus Appropriations bill cific demonstration projects in the re- stored a strong pay-go rule requiring signed into law last December. As a gion. that both mandatory spending and tax member of the Senate Energy and With respect to site-specific projects cuts be paid for. However, the Repub- Water Appropriations Subcommittee, I to support wind development for future lican leadership refused to accept a appreciated the efforts of Senators electric generation, I believe that budget resolution conference agree- DOMENICI and REID, the chairman and WAPA should first develop parameters ment that contained the provision, so the ranking member of our sub- for determining what constitutes a the budget resolution was never adopt- committee, to include $500,000 for the bona fide wind project. In doing this, ed and the strong pay-go rule was Western Area Power Administration, WAPA should ensure that projects never brought into effect. The Fiscal WAPA, to continue its work on the meet the following requirements: a Responsibility for a Sound Future Act

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00031 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S138 CONGRESSIONAL RECORD — SENATE January 24, 2005 would end the current practice of ex- $2.27 million donation to a cancer radi- between 20 to 30 million of them are empting all mandatory spending and ation center in Norfolk and last No- chronically uninsured. tax cuts assumed in the budget resolu- vember, he donated $5.3 million to UNL My Republican colleagues and I will tion from the pay-as-you-go rule, and to help with the renovation of a build- soon be introducing one of our priority extend the Senate pay-go rule cur- ing where he took classes. bills for the coming Congress. This leg- rently set to expire in 2008 through fis- I had the opportunity over the years islation, the Healthy America Act of cal year 2015. to meet Carson. In 1967, he returned to 2005, will bring together an aggressive The bill would also reinstate seques- Nebraska for the State’s Centennial and innovative set of health care solu- tration, across-the-board spending celebration. He was invited by the Gov- tions. These solutions build on the al- cuts, to enforce pay-go and discre- ernor to headline the gala with his ready impressive health care record of tionary spending limits. Legislation former Omaha radio morning show co- the last Congress—principally deliv- that exceeds fiscal year 2005 discre- host Harvey Swenson. Swenson was the ering Medicare prescription drug cov- tionary spending caps, as well as man- manager of KLMS radio station in Lin- erage to seniors and making tax-free datory spending and tax legislation coln, where I worked at the time. Car- health savings accounts available to all that would increase the deficit, would son came to the station and talked Americans. trigger sequesters. The bill also ex- with all of us about his early days in Our bill will include many of Presi- presses the sense of the Senate that a Nebraska radio. dent Bush’s health care reform prior- statutory discretionary spending limit After Carson graduated from high ities, as well as the proposals developed should be enacted for 2006 to prevent school, his parents moved from Norfolk last year by the Senate Republican passing more debt on to our children. to Columbus, NE, where I lived. I would Task Force on Health Care Costs and The bill would also limit the use of occasionally see Carson walking his the Uninsured, of which I was proud to the Senate’s fast-track ‘‘reconcili- dogs in Columbus when he would visit be a member. ation’’ procedures, which cut off debate his parents during the summers. At the heart of this legislation are after only 20 hours, to deficit reduction America will miss this good man, measures aimed at restraining health legislation. Legislation that would in- Johnny Carson. We are all very proud care costs, increasing access to care, and improving health care quality. crease the deficit could still be consid- of him—of what he represented and Toward this end, one of our—and the ered in the Senate, but could not be ex- where he came from. I ask my col- pedited using reconciliation proce- President’s—topmost priorities is com- leagues to join me and all Americans in prehensive reform of America’s costly, dures. This would restore reconcili- honoring Johnny Carson. ation to its original purpose of deficit unfair, and chaotic medical liability reduction, and ensure that any legisla- f system. Our bill will ensure fair and tion increasing deficits is subject to THE 32ND ANNUAL MARCH FOR rapid compensation to injured patients, full scrutiny, debate, and consideration LIFE reduce frivolous lawsuits, and limit ex- cessive and costly damage awards. in the Senate. Mr. HAGEL. Mr. President, today is In addition, the legislation would Also especially important, I believe, the 32nd Annual March for Life on is the creation of a new national frame- prohibit the fast-tracking of Congres- Washington, DC’s National Mall. Indi- sional budget resolutions that contain work for establishing personal elec- viduals from all over the Nation will tronic health records and for exchang- a reconciliation instruction that would march together in solidarity, despite worsen the deficit. Any budget resolu- ing health information securely and the bitterly cold weather, in support of privately. As the new chairman of the tion that includes an instruction to a the most basic of human rights: the committee to increase the deficit Senate Health, Education, Labor and right to life. The March for Life is an would be subject to unlimited debate Pensions Committee I will be working important opportunity to demonstrate rather than limited to 50 hours. closely with my colleagues in the com- We must return our Nation to a path a firm and clear commitment to pre- ing months to develop legislation that of fiscal responsibility. We must put an venting abortion and protecting the will speed the adoption of standards end to these record deficits and record rights of each unborn child. and enable systems to ‘‘talk’’ to each debt. This legislation presents a clear Today I met with 35 representatives other—reforms that eventually will test of whether we are serious about from Nebraskans United for Life and save billions of dollars and, poten- putting our fiscal house back in order. Creighton University. They are com- tially, many thousands of lives. I urge my colleagues to support this mitted to promoting the right to life Other critical features of this legisla- legislation. for all human beings and work tire- tion include a commitment to reform- lessly to ensure that this issue remains f ing the struggling small group and in- at the forefront of debate. dividual health insurance markets, ex- THE PASSING OF NEBRASKA’S I strongly support the efforts of the panding the availability of health sav- JOHNNY CARSON National Right to Life Committee. The ings accounts, HSAs, creating targeted Mr. HAGEL. Mr. President, I rise to March for Life is a powerful reminder tax credits to help Americans purchase express my sympathy over the loss of of the progress that has been made and private health insurance, and expand- Nebraska’s Johnny Carson, the 30-year the work that remains for the pro-life ing America’s Community Health Cen- host of the ‘‘Tonight Show’’ and a dedi- cause. ters and related facilities. cated Nebraska philanthropist. He Above all, we should focus on edu- Mr. President, this legislation will be passed away yesterday at the age of 79 cation, including the encouragement of a solid foundation and a promising be- in his Malibu, CA home. abstinence and adoption. Communities, ginning as we begin this new Congress. Johnny Carson was a Nebraska origi- churches, synagogues and families Together with my colleagues and with nal and an American icon. He elevated must continue to come together to the President, I will work tirelessly to the late night talk show to an art-form help provide a strong source of support assure that health care costs, access, and he did it with class and fun. Carson and counsel for young men and women and quality are at the forefront of our will be remembered as a generous indi- as they become adults. priorities in the weeks and months vidual who was proud of his State. f ahead. After serving in the Navy during f World War II, Carson attended the Uni- HEALTH CARE versity of Nebraska at Lincoln, UNL, Mr. ENZI. Mr. President, rising CONFIRMATION OF MARGARET and earned a bachelor of arts degree in health care costs and access to afford- SPELLINGS AS SECRETARY OF radio and speech. As a student, Carson able health insurance are among the EDUCATION practiced his comedy and perfected his biggest worries Americans face today. Mr. HATCH. Mr. President, I rise ability to perform card and magic Health care costs are increasing fast- today to express my support for Ms. tricks. His experiences at UNL greatly er than any other basic service in Margaret Spellings as our new Sec- influenced his career in entertainment. American society. Today, 44 million retary of Education. Carson made many significant con- Americans lack health insurance at This is a key position at a key time. tributions to Nebraska. Among them a any given point during the year, and As I travel around the great State of

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00032 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S139 Utah, there is no single issue area of munity to make sure that these kids American on the first legislative day of greater concern than education. I am get the help they need. And they are this 109th Congress. proud of the way Utah has been edu- having great results. Test scores are The impact of Dr. King’s life, actions cating the children of my State. Our up. Honor roll is up. Parents are more and deeds is just as great today as it schools and teachers are among some satisfied. Students are taking pride in was 36 years ago, when his life was of the best anywhere. Although we their education. And, that’s what taken from us. Dr. King accomplished spend less per student than many other NCLB is all about. so much in his short life; he was a pas- States, we are getting a great bang for Of course, this does not mean the law tor, civil rights activist and leader, our buck. is perfect. We need to fund it better, Nobel Peace Prize recipient, Time mag- As a strong supporter of education, I and too many schools do not make An- azine’s Man of the Year, and in many have been pleased to play an active nual Yearly Progress or AYP because ways, the emancipator of all Ameri- role in every piece of education reform they just do not understand what is re- cans. legislation that has come before the quired, or misinterpreted the law. I Dr. King’s adherence to nonviolence Congress in the past 28 years. I at- think it is going to take some time to in the pursuit of social justice left an tended public schools, as did my chil- adjust. We need to continue to do what indelible mark on our nation’s history dren and now my grandchildren, and I is working in NCLB and look at what is and conscience. Clearly, much progress have faith in our Nation’s schools. I not. has been made in the struggle for civil look forward to working closely with Utah has been in the forefront of the rights, equality and social justice. We Ms. Spellings and the Department of debate and was one of the first States rightly pay tribute to the civil rights Education, particularly as I return to to make moves toward possibly opting accomplishments to date, and we right- the Senate Committee on Health, Edu- out of No Child Left Behind, due in ly attribute much of that progress to cation, Labor, and Pensions. part to concerns about retaining State Dr. King. I have been impressed by the Presi- control and objections to federal man- But there is still much to do. And dent’s complete confidence in Ms. dates without sufficient funding. sadly, the current administration has Spellings and her ability to serve our Make no mistake, I am a strong ad- had a disappointing record on civil Nation and its most valuable asset, our vocate for local control of education rights and has shown little interest in children, as our top educator. and want to make sure that there is shouldering leadership responsibility While Ms. Spellings’ credentials and sufficient flexibility for our States. I on these important issues. experience are very impressive, none is trust that the Department of Edu- Two years ago, on the week before we greater than her role as a mother and cation will keep open lines of commu- celebrated the birthday of Dr. King, primary educator of her two daughters, nication with the States and localities Jr., President Bush intervened in a Mary and Grace. Without a doubt, the as we work together to ensure that case before the United States Supreme home is the greatest classroom. truly no child is left behind. Court in an effort to destroy affirma- We are all aware of Ms. Spellings’ I was particularly pleased that dur- tive action, which is effectively ‘‘equal background of service in Texas as chief ing her hearing before the Senate education rights’’ for African Ameri- education advisor to then-Governor HELP Committee, Ms. Spellings ac- cans and other minority groups. George W. Bush. I have been pleased to cepted my invitation to personally The case involved the University of work with Ms. Spellings during the visit Utah to meet with legislators and Michigan program which used race as past four years in her capacity as the educators there. We look forward to one factor among many when selecting Assistant to the President for Domes- her visit. incoming students. I joined other tic Policy. Since the announcement of With her confirmation, Ms. Spellings United States Senators in an amicus her nomination by President Bush, I will replace Secretary Roderick Paige. brief in support of the University of have received numerous letters in sup- I would like to take a moment to note Michigan affirmative action program. port of Ms. Spellings by various groups outgoing Secretary Roderick Paige’s Thankfully, in its first ruling on af- and individuals concerned about edu- service. During his tenure, he led the firmative action in higher education cation issues. implementation of major education re- admissions in 25 years, the nation’s Education is the hallmark of domes- forms. He showed great commitment to highest court ruled on June 23, 2003, tic issues. While I believe our Nation’s providing our children a quality edu- that race can be used in university ad- education system ranks among the fin- cation, notwithstanding their cir- mission decisions. Justice Sandra Day est in the world, we can still make im- cumstances, thereby honoring the O’Connor was the eventual deciding provements. Funding for schools is pledge to leave no child behind. While vote in the case, saying that affirma- vital, and I have consistently sup- so doing, Secretary Paige dem- tive action is still needed in America— ported federal funding to assist our Na- onstrated willingness to consider cer- but hoped that its days are numbered. tion’s teachers, schools, and students. I tain adjustments in an effort to align Last year, on Dr. King’s 75th birth- will continue to support programs to the implementation of the No Child day, President Bush went to Atlanta enrich and improve our school system. Left Behind Act with the intent of the and laid a wreath at Dr. King’s grave. Ms. Spellings has indicated her law. We thank him for his service. The very next day, despite protest from strong commitment to the No Child Without a doubt, Ms. Spellings has the civil rights community and against Left Behind Act, NCLB, signed into law many challenges ahead, but I am con- the expressed will of the Senate, Presi- by President Bush on January 8, 2002. I fident that she will serve our country dent Bush recess appointed Judge have been supportive of NCLB. Even with dedication and distinction. Charles Pickering to the Fifth Circuit those who don’t agree with everything I yield the floor. Court of Appeals. in NCLB agree that they are now fo- f President Bush cast aside several sig- cused on making sure every child is nificant concerns of the African Amer- progressing, and they are using innova- IN HONOR OF DR. MARTIN LUTHER ican and civil rights community. Some tive approaches to tracking student KING, JR.’S BIRTHDAY of these concerns included: Judge achievement and motivating them to Mr. LAUTENBERG. Mr. President, I Pickering’s support as a State Senator meet the new standards. ask that this statement be inserted in in the 1960s for the Mississippi Sov- For example, an inner-city school in the proper place in the RECORD. ereignty Commission, which was estab- Utah with a large number of students I rise today to honor the life and leg- lished to prevent the implementation in low-income, non-English-speaking acy of Reverend Dr. Martin Luther of Brown v. Board of Education; Judge families is using funds from NCLB to King, Jr. Pickering’s opposition as a legislator purchase a student tracking database While I participated in an event com- and Federal judge to voting rights for that shows how each child is doing in memorating the life of Dr. King at the African Americans; and Judge each subject with every teacher. They Morning Star Community Tabernacle Pickering’s disturbing positions as a know who needs the extra help and in Church in Linden, New Jersey, I felt it Federal judge on two of the key protec- what areas. They are enlisting the sup- was important to pay tribute to the tions of equal voting rights for all port of parents, teachers, and the com- life and legacy of this extraordinary Americans—the one person-one vote

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00033 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S140 CONGRESSIONAL RECORD — SENATE January 24, 2005 Constitutional doctrine and the Voting ing Wells rural mail route loop. As he the quality of rural living, Dennis has Rights Act. celebrates a well-deserved retirement, been a consistent champion for fair These are just two examples of a let it be known that he leaves behind a trade, even when the notion has been broader indifference President Bush memorable and strong legacy, spanning unpopular to some. Throughout his has shown to the social, economic, and 57 years of dedicated service to the U.S. presidency, Dennis faced some difficult legal obstacles African-Americans are Postal Service, his eastern Montana situations. However, he never lost forced to overcome in their ongoing ef- mail route loop, and the people of the focus on the concerns that are impor- fort to achieve real equality. State of Montana. We know Congress- tant to South Dakotan’s and continued Affirmative action has proven bene- man REHBERG sends his support and to work for the betterment of rural ficial in combating past discrimination congratulations as well for Paul’s sig- America. and it remains necessary today. Judge nificant achievement. Under Dennis’ leadership, SDFU has Pickering is just one of a host of judi- Beginning with a team of horses, Mr. enhanced the lives of thousands of cial nominees opposing civil rights Kasten delivered the mail faithfully to South Dakotans through various edu- President Bush has put forth as part of this frontier mail route for 57 note- cational programs, particularly those a larger effort to pack the Federal worthy years, honorably upholding the aimed at the younger generation of courts with ultra-conservative U.S. Postal Service’s code of conduct. farmers. Involvement in the SDFU edu- ideologues. In fact, he has gone above and beyond cation program jumped from 389 young Each of us must do our part to ad- the call of duty on many occasions, de- producers enrolled in camps in 1997, to vance the legacy of Dr. Martin Luther livering groceries and other necessary over 1,200 participants in the most re- King, Jr., and to promote civil rights items to many people along this re- cent camps. These camps teach young equality. I will continue to provide mote mail route during his tenure. It is people about the benefits of coopera- leadership in the 109th Congress to help clear that Mr. Paul Kasten has cease- tives and shared responsibility, as well minority businesses, increase access to lessly served the U.S. Postal Service as the important rural values that education and health care, improve job and the State of Montana for nearly six make South Dakota stronger. As Den- growth, and fight racial profiling. decades, and is justly deserving of the nis noted in his farewell speech to I hope that President Bush and the honor due to him today. It is with SDFU: entire Congress will do the same. great pride that Senator BAUCUS and I The most important Farmers Union is not bring to the attention of this great the Farmers Union of yesterday. It is not the f Farmers Union that I inherited from Dallas body the hard work that Mr. Kasten TRIBUTE TO STEVE BEASLEY Tonsager, or the one we enjoy today. The has completed, both to the State of most important Farmers Union is the one we Mr. BAUCUS. Mr. President. I rise Montana and to Montana’s people. turn over to the next generation of Farmers today to say a few words of thanks to Thank you for all your commendable Union leaders. The most important Farmers Steve Beasley, an outstanding agri- service, Paul, and we wish you and Union is the Farmers Union of tomorrow. culture economist at USDA who re- your family all the best in your future Dennis’ hard work as president is re- cently completed a year-long fellow- endeavors. flected in the impressive legacy he ship on the Senate Finance Committee. f leaves behind. SDFU has a strong, ex- Steve’s service to the committee, and panding membership, and prosperous ADDITIONAL STATEMENTS by extension to the State of Montana, and thriving education program filled will be remembered fondly and with with innovative ideas to revitalize great appreciation. HONORING DENNIS WIESE South Dakota’s rural communities. A year ago I was able to snag Steve It is with great honor that I share ∑ away from his job at the Foreign Agri- Mr. JOHNSON. Mr. President, I rise Dennis’ accomplishments with my col- culture Service at the Department of today to publicly commend the work of leagues and publicly commend him for Agriculture. He brought to us years of Mr. Dennis Wiese, President of South excellently serving South Dakota and experience in foreign market develop- Dakota Farmers Union, SDFU, for his family farmers. I wish the very best for ment and capacity-building. During his 12 years of dedicated service to South him, his wife Julie, and his children time with the committee, his expertise Dakota’s farmers, ranchers and rural Dayton, Kyle, Owen, Austin and proved invaluable as he worked on cal- people. After six and a half terms as Elysa.∑ President of SDFU, Dennis has decided culating the effects of the North Amer- f ican Free Trade Agreement on Mon- not to seek reelection and will begin tana agricultural products, analyzing his own consulting business in his HONORING DR. VINE DELORIA, JR. the effect of agricultural trade liberal- hometown of Flandreau, SD. ∑ Mr. JOHNSON. Mr. President, it is ization on crop prices over the past few Over the years, Dennis has been ex- with great honor that I publicly com- years, as well as helping prepare me for traordinarily committed to South Da- mend Dr. Vine Deloria, Jr., for receiv- trade missions to Australia, New Zea- kota agriculture and is a real ambas- ing the American Indian Visionary land, China, Japan, and Thailand. sador for farming and ranching in the Award. Half of my State’s economy is based state. As chair of the National Farmers Dr. Deloria, a member of the Stand- on agriculture, and the work Steve did Union subcommittee that worked on ing Rock Sioux tribe, is a distinguished for us will serve us for the next several the farm bill rural development sec- Native American scholar whose re- years as we examine the effects of tion, Dennis’ insight was invaluable, search, writings, and teaching span his- trade on our economy’s largest sector. during negotiations on the Farm Secu- tory, law, religion, and politics. This I am sad to see him go, but I know the rity and Rural Investment Act of 2002. award, given by the Native American USDA is eager to get him back. I thank Since its establishment in 1914, publication, Indian Country Today, him for his hard work over this past South Dakota Farmers Union has con- honors those who display ‘‘the highest year, and I wish him all the luck in the sistently been a voice for family farm- qualities and attributes of leadership future. ers and ranchers, always striving to in defending the foundations of Amer- f improve the business climate for agri- ican Indian freedom.’’ This is an honor culture and the quality of life for all Dr. Deloria richly deserves. TRIBUTE TO MR. PAUL KASTEN South Dakotans. Now, 91 years later, Born in 1933 in Martin, SD., Dr. Mr. BURNS. Mr. President, Senator SDFU is regarded as the leader on Deloria has been at the forefront of BAUCUS and I are honored today to pay issues concerning concentration in the American Indian activism since the tribute to Paul Kasten and thank him agri-business sector. I have always 1960s. As executive director of the Na- for the exceptional service and com- been able to rely on Dennis and the tional Congress of American Indians mitment he has given to the people of SDFU for the backing needed to stand from 1964 to 1967, Dr. Deloria fre- Montana. Mr. Kasten served faithfully up for the family agricultural pro- quently worked with leaders whose ex- with the U.S. Postal Service, particu- ducers and the special position they perience dated back to the Indian Reor- larly to Montanans along the hold America’s business and cultural ganization Act of 1934. Consequently, Brockway, Paris, Watkins, and Flow- structure. Always looking to improve Dr. Deloria attributes his involvement

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00034 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S141 in the Indian movement to working medical practice in Rutland in 1970. gratulate the William Beaumont Hos- with those influential people, as they When not practicing medicine, he was pital on 50 years of dedicated service to encouraged a new breed of activists. busy serving the community as a mem- the Michigan community. For the past 4 decades, Dr. Deloria ber of the Christ the King Elementary William Beaumont Hospital opened has been a voice of influence in Indian School Parent-Teacher Association and its doors in Royal Oak in 1955 as a re- history, writing more than twenty the Mount St. Joseph Academy school sult of a survey in southeast Michigan books and countless articles and lec- board, on both of which he served as which showed an overwhelming need tures. His works stimulated political president for a time. for medical assistance in the area. The thinking and discourse among Indian Later in life, when many people his survey was quickly proven correct. activists. As Wilma Mankiller, former age were settling into retirement, he Within its first week of operation, the Principal Chief of the Cherokee Nation, was called up during the first Gulf War hospital performed over 40 major sur- said of Dr. Deloria, ‘‘No writer has to Bahrain to serve his country once geries and delivered over 30 babies. As more clearly articulated the unspoken again, after which he was awarded the the need continued to grow, Beaumont emotions, dreams and lifeways of con- Presidential Meritorious Service opened a second hospital in 1977 in temporary Native people.’’ Medal. Troy. Now a retired professor of political But one of his greatest honors came In the past 50 years, Beaumont has science from the University of Arizona last April when his peers in the med- grown significantly, logging nearly 1.7 and retired professor emeritus from the ical community awarded him the Phy- million inpatient admissions and near- University of Colorado, Dr. Deloria is sician of the Year Award. A better man ly 3.3 million emergency visits. It still writing and inspiring young activ- could not have been recognized. works closely with several universities Dr. Austin will be missed by family, ists from his home in Tucson, Arizona. in Michigan to provide premier resi- friends and all those he touched with In fact, Time magazine recognized dency and fellowship programs and the his healing hand.∑ Deloria as one of the 11 most influen- Beaumont Research Institute conducts tial religious thinkers of the twentieth f more than 800 active studies funded by century. As Indian Country Today TRIBUTE TO ADAM GARDNER, grants. notes, ‘‘Vine Deloria Jr. provided enor- YILEI YANG, ASHLEY SMITH, Today, Beaumont is ranked among mous perception, guidance, strategy JACK HARTZ AND BENJAMIN the top hospitals not just in Michigan and sheer analytical heft to the strug- GOWAN but in the Nation. With staff rep- gle for respect and justice for American ∑ Mr. BUNNING. Mr. President, I wish resenting over 90 different medical and Indians.’’ to pay tribute to Adam Gardner, Yilei surgical specialties, Beaumont has Dr. Vine Deloria, Jr., is an extraor- Yang, Ashley Smith, Jack Hartz and been honored with numerous awards dinary pioneer and supporter of Native Benjamin Gowan as five truly out- including AARP’s ‘‘Top 50 Hospitals,’’ American rights and the honor of win- standing students from the Common- one of ‘‘America’s Best Hospitals’’ by ning the American Indian Visionary wealth of Kentucky. U.S. News and World Report, a ‘‘100 Award is one he highly deserves. He is The National Honor Society orga- Top Hospitals—National Benchmarks a man of great scholarship and knowl- nizes a Scholar’s Bowl to foster a spirit for Success’’ by Solucient, and one of edge, and will continue to shape his- of aspiration and hard work in Amer- Michigan’s ‘‘Best Places to Work’’ by tory for years to come. Dr. Deloria has ica’s students. These Scholar Bowls in- Crain’s Detroit Business. never sought honors or recognition, clude testing of each student in five Senator STABENOW and I are de- but his scholarship has brought him different categories: English, math, lighted to have the opportunity to well-deserved accolades. It is an honor science, social studies, and general thank the former and current staff of for me to share his accomplishments knowledge. The tests are rigorous and Beaumont Hospital for their enormous with my colleagues and to publicly they require a longstanding history as contributions to the State of Michigan commend Dr. Deloria on his talent and a good student. and to congratulate them on reaching commitment to history, under- Being recognized by this organization this significant milestone.∑ standing, and education.∑ is truly an honor and I am pleased to f f hear that these five students from Ken- tucky have become the National Honor MESSAGES FROM THE PRESIDENT TRIBUTE TO DR. DAVID A. AUSTIN Society’s Scholar Bowl Champions. Messages from the President of the ∑ Mr. JEFFORDS. Mr. President, it is The four students from duPont Manual United States were communicated to with a heavy heart that I rise today to High School in Louisville, KY success- the Senate by Ms. Evans, one of his pay tribute to Dr. David A. Austin, an fully defended their school’s title as secretaries. extraordinary man who touched many National Honor Society National lives but passed away on November 4, Scholar’s Bowl Champions. They are f 2004. Adam Gardner, Yilei Yang, Ashley EXECUTIVE MESSAGES REFERRED Dr. Austin lived a life full of vitality Smith, and Jack Hartz. One student, As in executive session the Presiding and enthusiasm. He had an accom- Benjamin Gowan, from Nelson County Officer laid before the Senate messages plished career, always helped others High School in Bardstown, KY, took from the President of the United without thought for himself and made first place in the test on the individual States submitting sundry nominations his family the center of his life. science subject category. Thanks to which were referred to the appropriate Dr. Austin was born in Brattleboro, the hard work of these young men and committees. VT, where he graduated from St. Mi- women, four out of five of the top scor- (The nominations received today are chael’s High School and received his ing students at last year’s Scholar’s printed at the end of the Senate pro- Bachelor of Science from St. Michael’s Bowl were from the Commonwealth of ceedings.) College. From there he went on to med- Kentucky. ical school at the University of In their letter to me, the National f Vermont where he began his lifelong Honor Society informed me that ‘‘these EXECUTIVE REPORT OF career of healing and helping others. Kentucky students truly exhibited su- COMMITTEE After receiving his Naval Medical Of- perlative performance.’’ I congratulate ficer commission, he continued his edu- these five students for their hard work The following executive report of cation, graduating from the Naval and their achievement.∑ committee was submitted: Deep Sea Diving School here in Wash- f By Mr. CRAIG for the Committee on Vet- ington, DC and the School of Sub- erans’ Affairs. marine and Undersea Medicine in New CELEBRATING WILLIAM BEAU- * Jim Nicholson, of Colorado, to be Sec- London, CT. MONT HOSPITAL’S FIFTIETH AN- retary of Veterans Affairs. After completing his active duty and NIVERSARY * Nomination was reported with rec- residency at St. Albans Naval Hospital ∑ Mr. LEVIN. Mr. President, on behalf ommendation that it be confirmed sub- in New York, Dr. Austin opened his of Senator STABENOW and myself, I con- ject to the nominee’s commitment to

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00035 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S142 CONGRESSIONAL RECORD — SENATE January 24, 2005 respond to requests to appear and tes- S. 12. A bill to combat international ter- KENNEDY, Mr. LEAHY, Mr. WYDEN, tify before any duly constituted com- rorism, and for other purposes; to the Com- and Ms. STABENOW): mittee of the Senate. mittee on Foreign Relations. S. 20. A bill to expand access to preventive By Mr. AKAKA (for himself, Mr. REID, health care services that help reduce unin- f Ms. MIKULSKI, Ms. STABENOW, Mr. tended pregnancy, reduce the number of INOUYE, Mr. DORGAN, Mr. LAUTEN- abortions, and improve access to women’s INTRODUCTION OF BILLS AND BERG, Mr. LEAHY, Mr. SALAZAR, Mr. health care; to the Committee on Health, JOINT RESOLUTIONS ROCKEFELLER, Mrs. MURRAY, Mr. Education, Labor, and Pensions. BINGAMAN, Mrs. FEINSTEIN, Mr. DUR- By Mrs. HUTCHISON: The following bills and joint resolu- BIN, Mr. KENNEDY, Mr. CORZINE, Mr. S. 24. A bill to establish an emergency re- tions were introduced, read the first PRYOR, Mr. SCHUMER, Mr. SARBANES, serve fund to provide timely financial assist- and second times by unanimous con- and Mr. DAYTON): ance in response to domestic disasters and sent, and referred as indicated: S. 13. A bill to amend titles 10 and 38, emergencies; to the Committee on the Budg- United States Code, to expand and enhance et. By Mr. GREGG (for himself, Mr. FRIST, health care, mental health, transition, and By Mr. CHAMBLISS: Mr. SESSIONS, Mr. DEWINE, Mr. disability benefits for veterans, and for other S. 25. A bill to promote freedom, fairness, ALLEN, Mr. SANTORUM, Mr. MCCON- purposes; to the Committee on Veterans’ Af- and economic opportunity by repealing the NELL, and Mr. DEMINT): fairs. income tax and other taxes, abolishing the S. 3. A bill to strengthen and protect Internal Revenue Service, and enacting a na- America in the war on terror; to the Com- By Ms. STABENOW (for herself, Mr. REID, Mr. CORZINE, Mr. KENNEDY, Mr. tional sales tax to be administered primarily mittee on Finance. by the States; to the Committee on Finance. By Mr. SANTORUM (for himself, Mrs. INOUYE, Ms. MIKULSKI, Mr. DORGAN, Mr. LEAHY, Mr. ROCKEFELLER, Mr. By Mrs. HUTCHISON (for herself, Mr. HUTCHISON, Mr. FRIST, and Mr. SCHUMER, Mr. DURBIN, and Mr. DAY- FRIST, Ms. CANTWELL, Mr. ENSIGN, MCCONNELL): Mr. ALEXANDER, and Mr. CORNYN): S. 6. A bill to amend the Internal Revenue TON): S. 14. A bill to provide fair wages for Amer- S. 27. A bill to amend the Internal Revenue Code of 1986 to provide permanent family tax ica’s workers, to create new jobs through in- Code of 1986 to make permanent the deduc- relief, to reauthorize and improve the pro- vestment in America, to provide for fair tion of State and local general sales taxes; to gram of block grants to States for temporary trade and competitiveness, and for other pur- the Committee on Finance. assistance for needy families and to improve poses; to the Committee on Finance. By Mrs. FEINSTEIN (for herself and access to quality child care, and to provide By Mr. BINGAMAN (for himself, Mr. Mr. LEAHY): incentives for charitable contributions by in- S. 29. A bill to amend title 18, United REID, Mr. KENNEDY, Mr. CORZINE, Mr. dividuals and businesses, to improve the pub- States Code, to limit the misuse of social se- DURBIN, Mr. REED, Mr. SCHUMER, Mr. lic disclosure of activities of exempt organi- curity numbers, to establish criminal pen- DODD, Mr. HARKIN, Ms. MIKULSKI, Ms. zations, and to enhance the ability of low-in- alties for such misuse, and for other pur- STABENOW, Mr. LAUTENBERG, Mrs. come Americans to gain financial security poses; to the Committee on the Judiciary. FEINSTEIN, Mrs. CLINTON, Mr. INOUYE, by building assets, and for other purposes; to By Mr. SARBANES (for himself, Mr. Mr. ROCKEFELLER, Mr. SARBANES, and the Committee on Finance. CORZINE, Mrs. CLINTON, Mr. AKAKA, Mr. DAYTON): By Mr. KYL (for himself, Mr. FRIST, S. 15. A bill to improve education for all Mr. BINGAMAN, Mr. SCHUMER, Mr. Mr. DEMINT, and Mr. MCCONNELL): students, and for other purposes; to the Com- DODD, Mrs. BOXER, Ms. MIKULSKI, and S. 7. A bill to increase American jobs and mittee on Finance. Mr. REID): S. 31. A bill to amend the Electronic Fund economic growth by making permanent the By Mr. KENNEDY (for himself, Mr. individual income tax rate reductions, the Transfer Act to extend certain consumer REID, Ms. STABENOW, Mr. CORZINE, reduction in the capital gains and dividend protections to international remittance Mr. SCHUMER, Ms. MIKULSKI, Mr. tax rates, and the repeal of the estate, gift, transfers of funds originating in the United AKAKA, Mr. INOUYE, Mr. LEVIN, Mr. and generation-skipping transfer taxes; to States, and for other purposes; to the Com- KERRY, Mr. LAUTENBERG, Mr. ROCKE- the Committee on Finance. mittee on Banking, Housing, and Urban Af- FELLER, Mr. DODD, Mr. PRYOR, and By Mr. ENSIGN (for himself, Mr. fairs. Mr. DURBIN): By Mr. DAYTON (for himself, Mr. REID, HAGEL, Mr. BROWNBACK, Mr. S. 16. A bill to reduce to the cost of quality Mr. DORGAN, Mr. LEAHY, Ms. MIKUL- SANTORUM, Mr. KYL, Mr. FRIST, Mrs. health care coverage and improve the avail- DOLE, Mr. SESSIONS, Mr. GRASSLEY, SKI, Mr. CORZINE, and Mr. JOHNSON): ability of health care coverage for all Ameri- S. 32. A bill to enhance the benefits and Mr. ALLEN, Mr. BUNNING, Mr. COBURN, cans; to the Committee on Finance. Mr. DEMINT, and Mr. MCCONNELL): protections for members of the reserve com- By Mr. DODD (for himself, Ms. MIKUL- ponents of the Armed Forces who are called S. 8. A bill to amend title 18, United States SKI, Ms. STABENOW, Mr. ROCKE- Code, to prohibit taking minors across State or ordered to extend active duty, and for FELLER, and Mr. SCHUMER): other purposes; to the Committee on Armed lines in circumvention of laws requiring the S. 17. A bill to amend the Help America Services. involvement of parents in abortion decisions; Vote Act of 2002 to protect voting rights and By Ms. CANTWELL (for herself, Mr. to the Committee on the Judiciary. to improve the administration of Federal BINGAMAN, Mrs. FEINSTEIN, Mrs. MUR- By Mr. ENZI (for himself, Mr. FRIST, elections, and for other purposes; to the and Mr. MCCONNELL): RAY, and Mr. FEINGOLD): Committee on Rules and Administration. S. 33. A bill to prohibit energy market ma- S. 9. A bill to improve American competi- By Mr. DAYTON (for himself, Mr. REID, nipulation; to the Committee on Energy and tiveness in the global economy by improving Ms. STABENOW, Mrs. FEINSTEIN, Mr. Natural Resources. and strengthening Federal education and KENNEDY, Mr. CORZINE, Mr. SCHUMER, By Mr. LIEBERMAN: training programs, and for other purposes; to Mrs. MURRAY, Ms. MIKULSKI, Mr. S. 34. A bill to provide for the development the Committee on Finance. LAUTENBERG, Mr. AKAKA, Mr. INOUYE, of a global tsunami detection and warning By Mr. LEVIN (for himself, Mr. REID, Mrs. CLINTON, Mr. LEVIN, Mr. KERRY, system, to improve existing communication Ms. MIKULSKI, Ms. STABENOW, Mr. Mr. LEAHY, Mr. ROCKEFELLER, Mr. of tsunami warnings to all potentially af- INOUYE, Mr. DORGAN, Mr. LAUTEN- DODD, Mr. SARBANES, and Mr. DUR- fected nations, and for other purposes; to the BERG, Mr. LEAHY, Mr. SALAZAR, Mr. BIN): Committee on Commerce, Science, and ROCKEFELLER, Mrs. MURRAY, Mr. S. 18. A bill to amend title XVIII of the So- Transportation. BINGAMAN, Mrs. FEINSTEIN, Mr. DUR- cial Security Act to make improvements to By Mr. CONRAD: BIN, Mr. KENNEDY, Mr. CORZINE, Mr. the medicare program for beneficiaries; to S. 35. A bill to amend the Internal Revenue PRYOR, Mr. NELSON of Nebraska, Mr. the Committee on Finance. Code of 1986 to extend the credit for produc- REED, Mr. SCHUMER, and Mr. DAY- By Mr. CONRAD (for himself, Mr. REID, tion of electricity from wind; to the Com- TON): Mr. FEINGOLD, Ms. MIKULSKI, Ms. mittee on Finance. S. 11. A bill to amend title 10, United STABENOW, Mr. INOUYE, Mr. LEAHY, By Mr. INOUYE: States Code, to ensure that the strength of Mr. SALAZAR, Mr. ROCKEFELLER, Mr. S. 36. A bill to amend title 10, United the Armed Forces and the protections and SCHUMER, Mrs. FEINSTEIN, Mr. DAY- States Code, to recognize the United States benefits for members of the Armed Forces TON, Mr. DODD, and Mrs. CLINTON): Military Cancer Institute as an establish- and their families are adequate for keeping S. 19. A bill to reduce budget deficits by re- ment within the Uniformed Services Univer- the commitment of the people of the United storing budget enforcement and strength- sity of the Health Sciences, to require the States to support their service members, and ening fiscal responsibility; to the Committee Institute to promote the health of members for other purposes; to the Committee on Fi- on the Budget. of the Armed Forces and their dependents by nance. By Mr. REID (for himself, Mrs. MUR- enhancing cancer research and treatment, to By Mr. BIDEN (for himself, Mr. REID, RAY, Mr. SCHUMER, Mr. CORZINE, Mr. provide for a study of the epidemiological Mr. BINGAMAN, Ms. MIKULSKI, Mr. LAUTENBERG, Mrs. CLINTON, Mr. causes of cancer among various ethnic DURBIN, Ms. STABENOW, Mr. ROCKE- KERRY, Mrs. FEINSTEIN, Ms. CANT- groups for cancer prevention and early detec- FELLER, Mr. LAUTENBERG, and Mr. WELL, Mr. HARKIN, Ms. MIKULSKI, Mr. tion efforts, and for other purposes; to the SCHUMER): INOUYE, Mr. AKAKA, Mr. LEVIN, Mr. Committee on Armed Services.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00036 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S143 By Mrs. FEINSTEIN (for herself and Commission for the State of Alaska; to the Homeland Security and Governmental Af- Mrs. HUTCHISON): Committee on Energy and Natural Re- fairs. S. 37. A bill to extend the special postage sources. By Mr. INOUYE: stamp for breast cancer research for 2 years; By Mr. INOUYE (for himself, Mr. STE- S. 61. A bill to amend title XVIII of the So- to the Committee on Homeland Security and VENS, Ms. CANTWELL, Mr. BURNS, Mr. cial Security Act to provide improved reim- Governmental Affairs. LAUTENBERG, Ms. SNOWE, Mr. AKAKA, bursement for clinical social worker services By Mrs. MURRAY: Ms. MURKOWSKI, Mrs. CLINTON, Mr. under the medicare program; to the Com- S. 38. A bill to enhance and improve bene- SMITH, and Mrs. MURRAY): mittee on Finance. fits for members of the National Guard and S. 50. A bill to authorize and strengthen By Mr. INOUYE: Reserves who serve extended periods on ac- the National Oceanic and Atmospheric Ad- S. 62. A bill for the relief of Jim K. tive duty, and for other purposes; to the ministration’s tsunami detection, forecast, Yoshida; to the Committee on Veterans’ Af- Committee on Finance. warning, and mitigation program, and for fairs. By Mrs. LINCOLN (for herself, Mr. other purposes; to the Committee on Com- By Mr. BINGAMAN (for himself and BINGAMAN, Mrs. MURRAY, Ms. merce, Science, and Transportation. Mr. DOMENICI): LANDRIEU, Mrs. BOXER, Mr. SAR- By Mr. BROWNBACK (for himself, Mr. S. 63. A bill to establish the Northern Rio BANES, and Ms. COLLINS): ALEXANDER, Mr. ALLEN, Mr. BUNNING, Grande National Heritage Area in the State S. 40. A bill to amend title XVIII of the So- Mrs. DOLE, Mr. ISAKSON, Mr. of New Mexico, and for other purposes; to the cial Security Act to provide medicare bene- CHAMBLISS, Mr. BURNS, Mr. COBURN, Committee on Energy and Natural Re- ficiaries with access to geriatric assessments Mr. COLEMAN, Mr. CORNYN, Mr. sources. and chronic care management, and for other CRAPO, Mr. DEMINT, Mr. DEWINE, Mr. By Mrs. LINCOLN (for herself and Mr. RYOR purposes; to the Committee on Finance. ENZI, Mr. GRAHAM, Mr. GRASSLEY, P ): S. 64. A bill to direct the Secretary of En- By Mr. NELSON of Nebraska (for him- Mr. HAGEL, Mr. HATCH, Mr. INHOFE, OMENICI RAIG ergy to establish a decommissioning pilot self, Mr. D , and Mr. C ): Mr. KYL, Mr. ROBERTS, Mr. S. 41. A bill to amend the Safe Drinking program to decommission and decontami- SANTORUM, Mr. SESSIONS, Mr. SHEL- Water Act to exempt nonprofit small public nate the sodium-cooled fast breeder experi- BY, Mr. TALENT, Mr. THUNE, Mr. water systems from certain drinking water mental test-site reactor located in northwest VITTER, Mr. VOINOVICH, Mr. MAR- standards relating to naturally occuring con- Arkansas; to the Committee on Energy and TINEZ, Mr. ENSIGN, and Mr. MCCON- taminants; to the Committee on Environ- Natural Resources. NELL): ment and Public Works. By Mr. INHOFE (for himself, Mr. STE- S. 51. A bill to ensure that women seeking By Mr. ALLEN (for himself, Mr. NEL- VENS, and Mr. BURNS): an abortion are fully informed regarding the SON of Florida, Mr. DEWINE, Mr. NEL- S. 65. A bill to amend the age restrictions pain experienced by their unborn child; to SON of Nebraska, Mrs. DOLE, Ms. for pilots; to the Committee on Commerce, the Committee on Health, Education, Labor, MURKOWSKI, and Mr. VITTER): Science, and Transportation. and Pensions. S. 42. A bill to amend title 10, United By Mr. INOUYE: By Mr. HATCH: States Code, to increase the death gratuity S. 66. A bill to amend title XIX of the So- S. 52. A bill to direct the Secretary of the payable with respect to deceased members of cial Security Act to provide for coverage of Interior to convey a parcel of real property the Armed Forces, and for other purposes; to services provided by nursing school clinics to Beaver County, Utah; to the Committee the Committee on Armed Services. under medicaid programs; to the Committee on Energy and Natural Resources. By Mr. HAGEL (for himself, Mr. COLE- on Finance. By Mr. HATCH: MAN, Mr. KENNEDY, Mr. DEWINE, and By Mr. INOUYE: S. 53. A bill to amend the Mineral Leasing Mr. OBAMA): S. 67. A bill to amend the Public Health Act to authorize the Secretary of the Inte- S. 43. A bill to provide certain enhance- Act to provide health care practitioners in rior to issue separately, for the same area, a ments to the Montgomery GI Bill Program rural areas with training in preventive for certain individuals who serve as members lease for tar sand and a lease for oil and gas, health care, including both physical and of the Armed Forces after the September 11, and for other purposes; to the Committee on mental care, and for other purposes; to the 2001, terrorist attacks, and for other pur- Energy and Natural Resources. Committee on Health, Education, Labor, and poses; to the Committee on Armed Services. By Mr. HATCH: Pensions. S. 54. A bill to amend the National Trails By Mr. HAGEL (for himself, Mr. By Mr. INOUYE: System Act to require the Secretary of the DEWINE, Mrs. CLINTON, Mr. KENNEDY, S. 68. A bill to amend title XIX of the So- Interior to update the feasibility and suit- Mr. LAUTENBERG, and Mr. SALAZAR): cial Security Act to provide 100 percent re- S. 44. A bill to amend title 10, United ability studies of four national historic imbursement for medical assistance provided States Code, to increase the amount of the trails, and for other purposes; to the Com- to a Native Hawaiian through a federally- military death gratuity from $12,000 to mittee on Energy and Natural Resources. qualified health center or a Native Hawaiian $100,000; to the Committee on Armed Serv- By Mr. ALLARD: health care system; to the Committee on Fi- ices. S. 55. A bill to adjust the boundary of nance. Rocky Mountain National Park in the State By Mr. LEVIN (for himself, Mr. HATCH, By Mr. INOUYE: of Colorado; to the Committee on Energy and Mr. BIDEN): S. 69. A bill for the relief of Donald C. S. 45. A bill to amend the Controlled Sub- and Natural Resources. Pence; to the Committee on Armed Services. stances Act to lift the patient limitation on By Mr. ALLARD (for himself and Mr. By Mr. INOUYE: prescribing drug addiction treatments by SALAZAR): S. 70. A bill to amend title XVIII of the So- medical practitioners in group practices, and S. 56. A bill to establish the Rio Grande cial Security Act to remove the restriction for other purposes; to the Committee on Natural Area in the State of Colorado, and that a clinical psychologist or a clinical so- Health, Education, Labor, and Pensions. for other purposes; to the Committee on En- cial worker provide services in a comprehen- By Mr. LEVIN (for himself and Mr. ergy and Natural Resources. sive outpatient rehabilitation facility to a LUGAR): By Mr. ALLARD: patient only under the care of a physician; to S. 46. A bill to authorize the extension of S. 57. A bill to further the purposes of the the Committee on Armed Services. unconditional and permanent nondiscrim- Sand Creek Massacre National Historic Site By Mr. INOUYE: inatory treatment (permanent normal trade Establishment Act of 2000; to the Committee S. 71. A bill to amend title XVIII of the So- relations treatment) to the products of on Energy and Natural Resources. cial Security Act to provide for patient pro- Ukraine, and for other purposes; to the Com- By Mr. INOUYE: tection by limiting the number of mandatory mittee on Finance. S. 58. A bill to amend title 10, United overtime hours a nurse may be required to By Mr. BINGAMAN (for himself and States Code, to permit former members of work at certain medicare providers, and for Mr. DOMENICI): the Armed Forces who have a service-con- other purposes; to the Committee on Fi- S. 47. A bill to provide for the exchange of nected disability rated as total to travel on nance. certain Federal land in the Santa Fe Na- military aircraft in the same manner and to By Mr. INOUYE: tional Forest and certain non-Federal land the same extent as retired members of the S. 72. A bill to amend title 5, United States in the Pecos National Historical Park in the Armed Forces are entitled to travel on such Code, to require the issuance of a prisoner- State of New Mexico; to the Committee on aircraft; to the Committee on Armed Serv- of-war medal to civilian employees of the Energy and Natural Resources. ices. Federal Government who are forcibly de- By Mr. LAUTENBERG (for himself and By Mr. INOUYE: tained or interned by an enemy government Mr. CORZINE): S. 59. A bill to amend title 10, United or a hostile force under wartime conditions; S. 48. A bill to reauthorize appropriations States Code, to authorize certain disabled to the Committee on Homeland Security and for the New Jersey Coastal Heritage Trail former prisoners of war to use Department of Governmental Affairs. Route, and for other purposes; to the Com- Defense commissary and exchange stores; to By Ms. CANTWELL: mittee on Energy and Natural Resources. the Committee on Armed Services. S. 73. A bill to promote food safety and to By Mr. STEVENS (for himself and Ms. By Mr. FEINGOLD: protect the animal feed supply from bovine MURKOWSKI): S. 60. A bill to repeal the provision of law spongiform encephalopathy; to the Com- S. 49. A bill to establish a joint Federal- that provides automatic pay adjustments for mittee on Agriculture, Nutrition, and For- State Floodplain and Erosion Mitigation Members of Congress; to the Committee on estry.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00037 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S144 CONGRESSIONAL RECORD — SENATE January 24, 2005 By Ms. CANTWELL (for herself and igible to participate in various health profes- By Mr. ENZI: Mrs. MURRAY): sions loan programs; to the Committee on S. 101. A bill to convey to the town of S. 74. A bill to designate a portion of the Health, Education, Labor, and Pensions. Frannie, Wyoming, certain land withdrawn White Salmon River as a component of the By Mr. INOUYE: by the Commissioner of Reclamation; to the National Wild and Scenic Rivers System; to S. 90. A bill to amend the Public Health Committee on Energy and Natural Re- the Committee on Energy and Natural Re- Service Act to provide for the establishment sources. sources. of a National Center for Social Work Re- By Mr. TALENT: By Ms. CANTWELL: search; to the Committee on Health, Edu- S. 102. A bill to provide grants to States to S. 75. A bill to permanently increase the cation, Labor, and Pensions. combat methamphetamine abuse; to the maximum annual contribution allowed to be By Mr. INOUYE: Committee on the Judiciary. made to Coverdell education savings ac- S. 91. A bill to amend title VII of the Pub- By Mr. TALENT (for himself, Mrs. counts; to the Committee on Finance. lic Health Service Act to ensure that social FEINSTEIN, Mr. BAYH, Mr. NELSON of By Ms. CANTWELL: work students or social work schools are eli- Nebraska, Mr. DAYTON, Mr. WYDEN, S. 76. A bill to amend the Internal Revenue gible for support under certain programs to Mr. SALAZAR, Mr. HAGEL, Mr. HAR- Code of 1986 to permanently increase the assist individuals in pursuing health careers KIN, Mr. SMITH, Mr. COLEMAN, and maximum annual contribution allowed to be and programs of grants for training projects Mr. GRASSLEY): made to Coverdell education savings ac- in geriatrics, and to establish a social work S. 103. A bill to respond to the illegal pro- counts, and to provide for a deduction for training program; to the Committee on duction, distribution, and use of meth- amphetamine in the United States, and for contributions to education savings accounts; Health, Education, Labor, and Pensions. other purposes; to the Committee on the Ju- to the Committee on Finance. By Mr. INOUYE: diciary. By Mr. SESSIONS (for himself and Mr. S. 92. A bill to amend title VII of the Pub- By Mr. TALENT (for himself, Mr. LIEBERMAN): lic Health Service Act to establish a psy- WYDEN, Mr. COLEMAN, and Mr. S. 77. A bill to amend titles 10 and 38, chology post-doctoral fellowship program, CORZINE): United States Code, to improve death bene- and for other purposes; to the Committee on Health, Education, Labor, and Pensions. S. 104. A bill to amend the Internal Rev- fits for the families of deceased members of enue Code of 1986 to provide tax-exempt fi- the Armed Forces, and for other purposes; to By Mr. INOUYE: S. 93. A bill to increase the role of the Sec- nancing of highway projects and rail-truck the Committee on Armed Services. transfer facilities; to the Committee on Fi- By Mrs. HUTCHISON (for herself, Mr. retary of Transportation in administering section 901 of the Merchant Marine Act, 1936, nance. BROWNBACK, Mr. CORNYN, Mr. and for other purposes; to the Committee on By Mr. TALENT (for himself, Mr. SES- BUNNING, Mr. BURNS, Mr. HAGEL, and Commerce, Science, and Transportation. SIONS, and Mr. DEMINT): Mr. ENSIGN): S. 105. A bill to reauthorize and improve S. 78. A bill to make permanent marriage By Mr. LUGAR (for himself, Mr. LEAHY, Mrs. LINCOLN, Mrs. DOLE, and the program of block grants to States for penalty relief; to the Committee on Finance. temporary assistance for needy families, im- By Mr. INOUYE: Mr. SMITH): S. 94. A bill to amend the Internal Revenue prove access to quality child care, and for S. 79. A bill to require the Secretary of the Code of 1986 to provide for a charitable de- other purposes; to the Committee on Fi- Army to determine the validity of the claims duction for contributions of food inventory; nance. of certain Filipinos that they performed to the Committee on Finance. By Mr. LEVIN: military service on behalf of the United By Mr. LAUTENBERG (for himself and S. 106. A bill to provide for the reliquida- States during World War II; to the Com- tion of certain entries of candles; to the Mr. DEWINE): mittee on Veterans’ Affairs. S. 95. A bill to amend titles 23 and 49, Committee on Finance. By Mr. INOUYE: United States Code, concerning length and By Mr. LEVIN: S. 107. A bill to provide for the reliquida- S. 80. A bill to restore the traditional day weight limitations for vehicles operating on tion of certain entries of clock radios; to the of observance of Memorial Day, and for other Federal-aid highways, and for other pur- Committee on Finance. purposes; to the Committee on the Judici- poses; to the Committee on Environment and By Mr. JOHNSON (for himself, Mr. ary. Public Works. ENZI, Mr. BINGAMAN, and Mr. DOR- By Mr. CRAIG: By Mr. INHOFE: S. 81. A bill for the relief of Benjamin M. S. 96. A bill to target Federal funding for GAN): S. 108. A bill to prohibit the operation dur- Banfro; to the Committee on the Judiciary. research and development, to amend section ing a calendar year of the final rule issued by By Mr. CRAIG: 1928 of the Social Security Act to encourage the Secretary of Agriculture to establish S. 82. A bill for the relief of Robert J. Ban- the production of influenza vaccines by croft, of Newport Washington, to permit the standards for the designation of minimal- eliminating the price cap applicable to the risk regions for the introduction of bovine payment of backpay for overtime incurred in purchase of such vaccines under contracts missions flown with the Drug Enforcement spongiform encephalopathy into the United entered into by the Secretary of Health and States, including designation of Canada as a Agency; to the Committee on Homeland Se- Human Services, to amend the Internal Rev- curity and Governmental Affairs. minimal-risk region, and the importation enue Code of 1986 to establish a tax credit to into the United States from Canada of cer- By Mr. INOUYE: encourage vaccine production capacity, and S. 83. A bill to amend the Internal Revenue tain bovine ruminant products during that for other purposes; to the Committee on Fi- calendar year, unless country of origin label- Code of 1986 to provide tax relief for the con- nance. version of cooperative housing corporations ing is required for the retail sale of a covered By Mr. ENZI: commodity during that calendar year; to the into condominiums; to the Committee on Fi- S. 97. A bill to provide for the sale of ben- nance. Committee on Agriculture, Nutrition, and tonite in Big Horn County, Wyoming; to the Forestry. By Mr. INOUYE: Committee on Energy and Natural Re- By Mr. VITTER (for himself, Mr. S. 84. A bill to amend the Internal Revenue sources. SALAZAR, Mr. THUNE, and Mr. Code of 1986 to exempt certain sightseeing By Mr. ALLARD (for himself, Mrs. flights from taxes on air transportation; to DEMINT): CLINTON, Mr. SHELBY, Mr. FEINGOLD, S. 109. A bill entitled ‘‘Pharmaceutical the Committee on Finance. Mr. BURNS, and Mr. ISAKSON): Market Access Act of 2005’’; to the Com- By Mr. INOUYE: S. 98. A bill to amend the Bank Holding mittee on Health, Education, Labor, and S. 85. A bill for the relief of Ricke Kaname Company Act of 1956 and the Revised Stat- Pensions. Fujino of Honolulu, Hawaii; to the Com- utes of the United States to prohibit finan- By Mrs. FEINSTEIN: mittee on the Judiciary. cial holding companies and national banks S. 110. A bill for the relief of Robert Liang By Mr. INOUYE: from engaging, directly or indirectly, in real and Alice Liang; to the Committee on the S. 86. A bill for the relief of Sung Jun Oh; estate brokerage or real estate management Judiciary. to the Committee on the Judiciary. activities, and for other purposes; to the By Mrs. FEINSTEIN: By Mr. INOUYE: Committee on Banking, Housing, and Urban S. 111. A bill for the relief of Shigeru S. 87. A bill to recognize the organization Affairs. Yamada; to the Committee on the Judiciary. known as the National Academies of Prac- By Mr. ENZI: By Mrs. FEINSTEIN: tice; to the Committee on the Judiciary. S. 99. A bill to authorize the Secretary of S. 112. A bill for the relief of Denes Fulop By Mr. INOUYE: the Interior to contract with the city of and Gyorgyi Fulop; to the Committee on the S. 88. A bill to allow the psychiatric or psy- Cheyenne, Wyoming, for the storage of the Judiciary. chological examinations required under city’s water in the Kendrick Project, Wyo- By Mrs. FEINSTEIN: chapter 313 of title 18, United States Code, ming; to the Committee on Energy and Nat- S. 113. A bill to modify the date as of which relating to offenders with mental disease or ural Resources. certain tribal land of the Lytton Rancheria defect, to be conducted by a clinical social By Mr. ALLARD (for himself and Mr. of California is deemed to be held in trust; to worker; to the Committee on the Judiciary. SALAZAR): the Committee on Indian Affairs. By Mr. INOUYE: S. 100. A bill to authorize the exchange of By Mr. KERRY (for himself, Mr. KEN- S. 89. A bill to amend title VII of the Pub- certain land in the State of Colorado; to the NEDY, Mrs. MURRAY, Mr. LAUTEN- lic Health Service Act to make certain grad- Committee on Energy and Natural Re- BERG, Mr. CORZINE, and Ms. CANT- uate programs in professional psychology el- sources. WELL):

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00038 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S145 S. 114. A bill to amend titles XIX and XXI By Mrs. BOXER (for herself and Mrs. By Mrs. CLINTON (for herself and Mr. of the Social Security Act to ensure that FEINSTEIN): SCHUMER): every uninsured child in America has health S. 128. A bill to designate certain public S. 140. A bill to provide for a domestic de- insurance coverage, and for other purposes; land in Humboldt, Del Norte, Mendocino, fense fund to improve the Nation’s homeland to the Committee on Finance. Lake, and Napa Counties in the State of defense, and for other purposes; to the Com- By Mrs. FEINSTEIN: California as wilderness, to designate certain mittee on Homeland Security and Govern- S. 115. A bill to require Federal agencies, segments of the Black Butte River in mental Affairs. and persons engaged in interstate commerce, Mendocino County, California as a wild or By Mr. LEVIN (for himself and Mr. in possession of electronic data containing scenic river, and for other purposes; to the JEFFORDS): personal information, to disclose any unau- Committee on Energy and Natural Re- S. 141. A bill to amend part A of title IV of thorized acquisition of such information; to sources. the Social Security Act to allow up to 24 the Committee on the Judiciary. By Mr. TALENT: months of vocational educational training to By Mrs. FEINSTEIN: S. 129. A bill to amend title 23, United be counted as a work activity under the tem- S. 116. A bill to require the consent of an States Code, to provide for HOV facilities; to porary assistance to needy families program; individual prior to the sale and marketing of the Committee on Environment and Public to the Committee on Finance. such individual’s personally identifiable in- Works. By Mr. SCHUMER: formation, and for other purposes; to the By Mr. HAGEL (for himself and Mr. S. 142. A bill for the relief of Alemseghed Committee on the Judiciary. NELSON of Nebraska): Mussie Tesfamical; to the Committee on the By Mrs. FEINSTEIN (for herself and S. 130. A bill to authorize an additional dis- Judiciary. Mr. VOINOVICH): trict judgeship for the district of Nebraska; By Mr. DAYTON: S. 117. A bill to amend the Higher Edu- to the Committee on the Judiciary. S. 143. A bill to ensure that Members of cation Act of 1965 to extend loan forgiveness By Mr. INHOFE (for himself and Mr. Congress do not receive better prescription for certain loans to Head Start teachers; to VOINOVICH): drug benefits than medicare beneficiaries; to the Committee on Health, Education, Labor, S. 131. A bill to amend the Clean Air Act to the Committee on Homeland Security and and Pensions. reduce air pollution through expansion of Governmental Affairs. By Mrs. FEINSTEIN: cap and trade programs, to provide an alter- By Mr. KOHL (for himself and Mr. S. 118. A bill for the relief of Maria Cristina native regulatory classification for units CORZINE): DeGrassi; to the Committee on the Judici- subject to the cap and trade program; to the S. 144. A bill to change the date for regu- ary. Committee on Environment and Public larly scheduled Federal elections and estab- By Mrs. FEINSTEIN (for herself, Ms. Works. lish polling place hours; to the Committee on COLLINS, Mr. SCHUMER, Mr. HAGEL, By Mr. SMITH (for himself and Mrs. Rules and Administration. Mr. DURBIN, Mr. DEWINE, Ms. CANT- LINCOLN): By Mr. ALLARD (for himself, Mr. WELL, Mr. INOUYE, and Mr. FEIN- S. 132. A bill to amend the Internal Rev- INHOFE, Mr. LOTT, Mr. ENZI, Mr. GOLD): enue Code of 1986 to allow a deduction for DEMINT, Mr. SANTORUM, Mr. CRAPO, S. 119. A bill to provide for the protection premiums on mortgage insurance; to the Mr. SESSIONS, Mr. VITTER, Mr. of unaccompanied alien children, and for Committee on Finance. THUNE, Mr. ALEXANDER, Mr. FRIST, other purposes; to the Committee on the Ju- By Mr. TALENT (for himself and Mr. Mr. TALENT, Mr. BURR, Mrs. diciary. FEINGOLD): HUTCHISON, Mr. KYL, Mrs. DOLE, Mr. S. 133. A bill to amend section 302 of the By Mrs. FEINSTEIN: MARTINEZ, Mr. ISAKSON, Mr. MCCON- S. 120. A bill for the relief of Esidronio PROTECT Act to modify the standards for NELL, Mr. HATCH, Mr. ROBERTS, Mr. Arreola-Saucedo, Maria Elna Cobian the issuance of alerts through the AMBER CORNYN, Mr. STEVENS, and Mr. Arreola, Nayely Bibiana Arreola, and Cindy Alert communications network; to the Com- COBURN): Jael Arreola; to the Committee on the Judi- mittee on the Judiciary. S.J. Res. 1. A joint resolution proposing an ciary. By Mrs. FEINSTEIN (for herself and amendment to the Constitution of the By Mr. DEWINE (for himself, Mr. DUR- Mrs. BOXER): United States relating to marriage; to the S. 134. A bill to adjust the boundary of Red- BIN, Mr. ALLEN, Mr. HAGEL, Mr. COLE- Committee on the Judiciary. wood National Park in the State of Cali- MAN, Mr. JOHNSON, Mr. OBAMA, and By Mr. CRAIG: fornia; to the Committee on Energy and Nat- Mr. LEAHY): S.J. Res. 2. A joint resolution proposing an ural Resources. S. 121. A bill to amend titles 10 and 38, amendment to the Constitution of the United States Code, to improve the benefits By Mr. BURNS (for himself, Mr. JOHN- United States relative to require a balanced provided for survivors of deceased members SON, Mr. THOMAS, Mr. BINGAMAN, Mr. budget and protect Social Security sur- of the Armed Forces, and for other purposes; THUNE, and Mr. DORGAN): pluses; to the Committee on the Judiciary. to the Committee on Armed Services. S. 135. A bill to amend the Agricultural By Mr. FEINGOLD: Marketing Act of 1946 to expand country of f S. 122. A bill to abolish the death penalty origin labeling for certain covered commod- SUBMISSION OF CONCURRENT AND under Federal law; to the Committee on the ities; to the Committee on Agriculture, Nu- Judiciary. trition, and Forestry. SENATE RESOLUTIONS By Mr. FEINGOLD: By Mrs. FEINSTEIN: The following concurrent resolutions S. 123. A bill to amend part D of title XVIII S. 136. A bill to authorize the Secretary of and Senate resolutions were read, and of the Social Security Act to provide for ne- the Interior to provide supplemental funding gotiation of fair prices for Medicare prescrip- and other services that are necessary to as- referred (or acted upon), as indicated: tion drugs; to the Committee on Finance. sist certain local school districts in the By Mr. FRIST (for himself, Mr. ALEX- By Mr. FEINGOLD: State of California in providing education ANDER, Mr. DOMENICI, Mr. COCHRAN, S. 124. A bill to amend title XVIII of the services for students attending schools lo- Mr. HAGEL, Mr. WARNER, Mr. BIDEN, Social Security Act to repeal the MA Re- cated within Yosemite National Park, to au- Mr. HATCH, Mr. KENNEDY, Mr. DODD, gional Plan Stabilization Fund; to the Com- thorize the Secretary of the Interior to ad- and Mr. GRAHAM): mittee on Finance. just the boundaries of the Golden Gate Na- S. Res. 7. A resolution relating to the By Mrs. BOXER (for herself, Mrs. FEIN- tional Recreation Area; to the Committee on death of Howard S. Liebengood, former Ser- STEIN, and Mr. DURBIN): Energy and Natural Resources. geant at Arms of the Senate; considered and S. 125. A bill to designate the United By Mr. KERRY: agreed to. States courthouse located at 501 I Street in S. 137. A bill to modify the contract con- By Ms. COLLINS (for herself, Mr. FEIN- Sacramento, California, as the ‘‘Robert T. solidation requirements in the Small Busi- GOLD, and Mr. COLEMAN): Matsui United States Courthouse’’; to the ness Act, and for other purposes; to the Com- S. Res. 8. A resolution expressing the sense Committee on Environment and Public mittee on Small Business and Entrepreneur- of the Senate regarding the maximum Works. ship. amount of a Federal Pell Grant; to the Com- By Mrs. LINCOLN: By Mr. KERRY (for himself and Mr. mittee on Health, Education, Labor, and S. 126. A bill to improve the administration BINGAMAN): Pensions. of the Animal and Plant Health Inspection S. 138. A bill to make improvements to the By Mr. INOUYE: Service of the Department of Agriculture microenterprise programs administered by S. Res. 9. A resolution expressing the sense and for other purposes; to the Committee on the Small Business Administration; to the of the Senate regarding designation of the Environment and Public Works. Committee on Small Business and Entrepre- month of November as ‘‘National Military By Mr. INOUYE: neurship. Family Month’’; to the Committee on the S. 127. A bill to amend chapter 81 of title 5, By Mr. KERRY: Judiciary. United States Code, to authorize the use of S. 139. A bill to amend the Small Business By Mr. SCHUMER (for himself and Mr. clinical social workers to conduct evalua- Act to direct the Administrator of the Small TALENT): tions to determine work-related emotional Business Administration to establish a voca- S. Con. Res. 3. A concurrent resolution ex- and mental illnesses; to the Committee on tional and technical entrepreneurship devel- pressing the sense of the Congress with re- Homeland Security and Governmental Af- opment program; to the Committee on Small spect to the murder of Emmett Till; to the fairs. Business and Entrepreneurship. Committee on the Judiciary.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00039 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S146 CONGRESSIONAL RECORD — SENATE January 24, 2005 STATEMENTS ON INTRODUCED By Mr. ENZI (for himself, Mr. improvement. According to the most BILLS AND JOINT RESOLUTIONS FRIST, and Mr. MCCONNELL): recent National Assessment of Edu- By Mr. GREGG (for himself, Mr. S. 9. A bill to improve American com- cation Progress, over 25 percent of petitiveness in the global economy by FRIST, Mr. SESSIONS, Mr. twelfth grade students could not read improving and strengthening Federal DEWINE, Mr. ALLEN, Mr. at grade level. Only two-thirds of stu- education and training programs, and SANTORUM, Mr. MCCONNELL, and dents entering the ninth grade are ex- for other purposes; to the Committee Mr. DEMINT): pected to complete high school within 4 on Finance. S. 3. A bill to strengthen and protect years. That is a dire forecast for our fu- Mr. ENZI. Mr. President, last week America in the war on terror; to the ture, but it need not be so if we stick we had an opportunity to be a part of Committee on Finance. to the goals we have set and work to a truly historic event. As we gathered Mr. ENZI. Mr. President, as reports achieve them. together on the west front of the Cap- We want to make sure we continue to continue to appear in the media, there itol, a huge crowd joined us along the can be little doubt that a critical area set high expectations of what all stu- Mall and down Pennsylvania Avenue to dents can achieve, regardless of their of homeland security, and one on which witness the inauguration of President I will be focusing as Chairman of the background. This needs to be a com- Bush. It was a great moment for Amer- mon theme in all our Federal edu- Health, Education, Labor and Pensions ica as the President took his oath of of- Committee, is the issue of bioter- cation programs. All students can fice. Later, in what was one of the best learn and every child can be a star rorism. It is clear that we cannot sepa- inaugural speeches I have ever heard, rate the need for a strong national bio- pupil. It is not just a slogan. It is a phi- he outlined his vision for the future losophy that our teachers need to put defense from other aspects of emer- and the theme for his second term. gency preparedness. into practice every day in the class- It filled my heart with pride to hear room. It must then be echoed by every Last summer, when President Bush him speak about freedom and the role signed the Project Bioshield Act into student’s parents each evening at home America would continue to play in at the dinner table. law, he called bioterrorism and efforts helping to bring its bright light to bear to use modern technologies against us We need to make sure Federal pro- on the darkest regions of the world. As grams emphasize accountability, but the greatest danger of our time. The he spoke, I was pleased to hear him threat posed by bioterror has not gone we also need to make sure we do it in also renew, his commitment to our Na- a way that makes sense. Many Federal unnoticed by terrorists and those who tion’s education system and to bring- wish to do us harm. That is why we programs designed to serve the same ing the highest standards to our population of students have different must continue to do everything we can schools. The President made it clear to ensure our ability to respond to the requirements. We can help our teachers that such an effort was an important serve their students better by reducing use of biological weapons. part of making sure that every Amer- In the months to come, my Com- the amount of time they spend outside ican has a stake in our future as a na- the classroom on activities that don’t mittee will be working together to de- tion. Without it, the American dream velop the strategy we will need to pro- help our children learn. Federal pro- we have shared for many years may be gram requirements should not work vide for a strong national biodefense. reduced to a nightmare for future gen- We will be exploring a number of op- against the, goal we have set of im- erations. proving student achievement. tions in that effort, like providing in- Clearly, we can’t allow that to hap- centives to increase private sector par- pen. That is why I am pleased to join, It is important to provide flexibility ticipation in the development of bio- with the distinguished majority leader, to the States so they can manage Fed- eral program dollars and address their terror countermeasures and bio- Dr. FRIST, and my friend and colleague, unique needs in the most effective preparedness tools. We will also be ex- from Tennessee, Senator ALEXANDER, amining ways to strengthen our domes- in introducing legislation we have manner possible. We need to let leaders tic vaccine industry and increase the written to address that need and en- at the State and local level make the overall readiness of our public health sure a brighter future for our children. important decisions about this coun- system. Among the goals our legislation seeks try’s education, because they are at While I commend its intent, I de- to address is the importance of the level closest to the people—and clined to cosponsor S. 3, the Repub- strengthening our public education closest to the classroom where we must lican leadership bioterrorism bill intro- system, ensuring parents are involved continue to get good results from our duced today. I look forward to devel- in the process and, above all, giving efforts. oping bipartisan legislation to our teachers the support they need to The needs of rural schools must also strengthen our national biodefense sys- obtain the results we must have if our continue to be addressed. Schools in tem in our Committee. Senator BURR, children are to have the best chance to rural States like Wyoming have unique who will be heading the Subcommittee succeed in life. needs and serve smaller populations. on Bioterrorism and Public Health Pre- The legislation I am introducing They can’t be administered like the paredness, will be an important part of today continues the work we began large schools of the big cities in the that effort. I am also looking forward with the passage of the No Child Left East. One-size-fits-all policies that to the input of my fellow Committee Behind Act. That bipartisan legislation may work in large population centers members, including Senators KENNEDY, made it clear that we had high expecta- are all too often doomed to fail in the GREGG and HATCH, as well as Senator tions for all public school children. It smaller towns and cities of the West. LIEBERMAN, who, while not a member made making sure those expectations Although funding will be a key in the of my Committee, has made this a pri- were met the center of our Federal edu- effort to address these issues, the Fed- ority of his work in the Congress and cation policy. That policy has had good eral Government provides only a frac- put a great deal of thought and effort results. Children all over the country, tion of education spending in this into the area. In the coming weeks and including minority children, are im- country. For K–12 education, the Fed- months, I will also be convening a proving their reading skills. Their eral investment is still around 8 per- number of discussions with critical math scores are getting better. In an- cent. The rest of the money comes stakeholders and experts as we develop other 2 years, when science is included from States and local districts. We our legislation. in the State assessments, I believe we need to trust these educators and ad- Together, I am confident we can will see that students are doing better ministrators to work on behalf of the build on the work Congress and Presi- in that subject, too. Thanks to the pas- children in their charge. We must en- dent Bush began with the Project Bio- sage of the No Child Left Behind Act sure they have the tools they need to shield legislation and do what is nec- that we all had a hand in, we are con- serve their students and help all chil- essary to ensure that we are as pre- tinuing to see more and more positive dren in their area succeed. pared as we possibly can be for the results in our schools. We also want to support lifelong ever-present and constantly changing Although our record of success is im- learning opportunities for students at threat of bioterrorism. pressive, there is still room for more every stage in their life. Education is

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If we do that, every duty within 72 hours, insofar as this year, more than 70 percent of college child’s life will be a success story and data is currently maintained; and the students were considered ‘‘nontradi- everyone will have the freedom to live total number of service personnel evac- tional.’’ Our education system needs to their own version of the American uated from theater for medical reasons. address the needs of adult learners, as dream. To ensure that awards and decora- well as children who take the more As we continue to work on improving tions are expeditiously and fairly ‘‘traditional’’ track in education. our Nation’s education system, an edu- awarded to deserving military per- We want to create a strong link be- cated citizenry will continue to be our sonnel, this bill would establish an Ad- tween education and the workforce. goal. It will never be enough to provide visory Panel on Military Awards and Businesses are creating and filling good our children with a diploma. We must Decorations to review the policies and jobs with good candidates, and we want provide them with the skills they will practices of each of the Services for to make sure we are filling those jobs need to compete for and win the jobs of awarding medals and decorations and with American workers. tomorrow and keep them. to report to Congress. This Panel In our technology-driven economy, would compare the different Service school can never be out. It is estimated By Mr. LEVIN (for himself, Mr. policies and practices for decorating its that 60 percent of tomorrow’s jobs will REID, Ms. MIKULSKI, Ms. military personnel, and make a rec- require skills that only 20 percent of STABENOW, Mr. INOUYE, Mr. ommendation as to whether individual today’s workers possess. It is also esti- DORGAN, Mr. LAUTENBERG, Mr. service practices should be continued mated that the average worker leaving LEAHY, Mr. SALAZAR, Mr. or a single standard adopted that ap- college today will switch careers 14 ROCKEFELLER, Mrs. MURRAY, plies to all Services; recommend meas- times in their life, and 10 of those ca- Mr. BINGAMAN, Mrs. FEINSTEIN, ures that can be taken to ensure that reers haven’t been invented yet. Mr. DURBIN, Mr. KENNEDY, Mr. service members serving in combat are To address those needs, we need a CORZINE, Mr. PRYOR, Mr. NEL- at least as likely to receive medals as system in place that can support a life- SON of Nebraska, Mr. REED, Mr. those not exposed to combat, and en- time of education, training, and re- SCHUMER, and Mr. DAYTON): listed personnel are just as likely as of- S. 11. A bill to amend title 10, United training. As tomorrow’s workers ficers to be decorated for their service. change careers, they will need to learn States Code, to ensure that the This bill would create an Office of new skills, or to apply their current strength of the Armed Forces and the Mobilization Planning and Prepared- skills in new ways. Our postsecondary protections and benefits for members ness within the National Security institutions will play a critical role in of the Armed Forces and their families Council to ensure that all of our na- supporting these students, as they do are adequate for keeping the commit- tional resources are assembled and or- now through a number of Federal edu- ment of the people of the United States ganized to respond to a national secu- cation programs. to support their service members, and High school dropouts are the most for other purposes; to the Committee rity emergency. National resources in- at-risk school population in the work- on Finance. clude our military, labor, transpor- force. We must look at Federal efforts Mr. LEVIN. Mr. President, I am hon- tation, industry and financial re- to reform high schools to make sure we ored to introduce the Standing with sources. are keeping students in school. We Our Troops Act of 2005. This bill ad- We know that current military oper- need to make sure that students are dresses the needs of the Soldiers, Sail- ations are wearing out military equip- leaving high school with a diploma, a ors, Airmen, and Marines who have re- ment faster than we are replacing it. quality education, and the strong foun- sponded so bravely to the call of our To address this, this bill would require dation of reading, writing, math and Nation. We owe it to them and their the Secretary of Defense to report to science skills that will help them suc- families to ensure that they are prop- Congress on the needs of our military ceed in the workforce. We must also erly trained and equipped for the haz- forces for reconstituting stocks of reach out to those who do not have ardous duties they are performing, that equipment and material damaged, de- high school diplomas to give them an they are fairly compensated for their stroyed, and worn out in Operation opportunity to increase the level of service, and that they receive their pay Iraqi Freedom and Operation Enduring their skills so that they, too, have a in the correct amount, on time. Freedom. The report will include the chance to succeed in life. We can do We start with the recognition that needs of each military service, includ- that by increasing their awareness of we have cut our troop strength too far ing the reserve components, for repair and involvement in lifetime of learning to sustain current military operations. and replacement of equipment; and au- programs. This bill would authorize increases of thorize appropriation of $8.5 billion for In this bill, we have also included up to 40,000 additional active duty Sol- the Army and $2.1 billion for the Ma- language to reauthorize the Workforce diers and Marines over the next two rine Corps for repair, refurbishment, Investment Act. That will help an esti- years. The bill authorizes an increase and replacement of equipment used in mated 900,000 unemployed workers each in the active duty Army end strength OIF and OEF. year get back to work and provide by up to 20,000 Soldiers in 2006 and an The Government Accountability Of- American workers with the skills they additional 10,000 in 2007, and it author- fice (GAO) found, and I agree, that the will need to be competitive in the glob- izes an increase in the Marine Corps’ Department of Defense’s mobilization al marketplace. That will help them active duty end strength by up to 5,000 and deployment policies were imple- land the good jobs that will be created Marines in 2006 and an additional 5,000 mented in a piecemeal fashion not in the years to come. Our legislation Marines in 2007. linked to a strategic framework. We will also support the needs of busi- The Department of Defense currently owe it to our service men and women nesses including small businesses look- reports numbers of service members to have clear policies regarding lengths ing for skilled workers. In addition, the killed or seriously wounded in action of deployments. The Department of De- bill will strengthen the role of public in our ongoing combat operations in fense must clearly communicate these education institutions in the Federal Iraq and Afghanistan. This bill would policies and other deployment related workforce preparation effort, including require a formal monthly report that information to service members and our community colleges. includes the numbers of Soldiers, Sail- their families. This bill would require As we work on this and other edu- ors, Airmen and Marines who are killed the Secretary of Defense to report to cation legislation, we must ensure we in action; killed as a result of non-com- Congress on DoD policies on lengths of are focused on getting the results that bat injuries incurred during combat op- mobilization and deployment periods will help our children succeed in life. erations; killed as a result of self-in- and on the use of stop-loss to keep We can do that by incorporating high flicted wounds or suicide; wounded in military personnel in the service be- expectations, accountability, flexi- action, when the injuries prevent the yond their service commitments.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00041 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S148 CONGRESSIONAL RECORD — SENATE January 24, 2005 In two separate reports, the GAO has allow survivors to receive Dependency title 10, United States Code, is amended by found that more than 90 percent mobi- and Indemnity Compensation from the striking ‘‘502,400’’ and inserting ‘‘522,400’’. lized reserve component personnel ex- VA as well as a Survivor Benefit Plan (b) STRENGTH FOR FISCAL YEARS AFTER perienced pay problems. The GAO annuity from the Department of De- FISCAL YEAR 2006.—Effective on October 1, 2006, section 691(b)(1) of such title is amended found that ‘‘These pay problems often fense. by striking ‘‘522,400’’ and inserting ‘‘532,400’’. United States taxpayers have borne a had a profound adverse impact on indi- SEC. 103. MARINE CORPS. disproportionate share of the cost for vidual soldiers and their families.’’ (a) STRENGTH FOR FISCAL YEAR 2006.—Ef- This bill would require the designation the reconstruction of Iraq. The support fective on October 1, 2005, section 691(b)(3) of of a senior official to ensure implemen- of the international community for title 10, United States Code, is amended by tation of GAO recommendations to cor- this reconstruction is critical. This bill striking ‘‘178,000’’ and inserting ‘‘183,000’’. rect these pay problems. would require the President to report (b) STRENGTH FOR FISCAL YEARS AFTER Representation of our reserve compo- to Congress on U.S., Iraqi, and foreign FISCAL YEAR 2006.—Effective on October 1, nent personnel at the highest levels in contributions to Iraq’s reconstruction 2006, section 691(b)(3) of title 10, United the Department of Defense has not before any new U.S. reconstruction States Code, is amended by striking ‘‘183,000’’ and inserting ‘‘188,000’’. kept pace with the increased role of funds are appropriated. The bill would our Guard and Reserve personnel. Ac- also require any U.S. funds for recon- TITLE II—FULL RECOGNITION OF SAC- cordingly, this bill creates a new posi- RIFICE AND VALOR OF UNITED STATES struction in Iraq be in the form of a SERVICEMEMBERS tion, a Deputy Under Secretary of De- collateralized loan which the U.S. Subtitle A—Findings fense for Reserve Affairs, to speak for would guarantee unless the President the Reserve Components. reports to Congress that it is in the SEC 201. FINDINGS. This bill would give tax relief to mo- U.S. national security interest to pro- Congress makes the following findings: bilized service members and employers (1) On November 21, 2004, the Columbia vide the funds other than in the form Broadcasting System television program 60 who make up for pay lost to service of a loan. Minutes reported that the staff of that pro- members who are ordered to active I again want to compliment the serv- gram had received from the Department of duty. It would amend the Internal Rev- ice of the young men and women serv- Defense a letter containing the assertion enue Code to authorize activated Na- ing in our military forces for their that ‘‘[m]ore than 15,000 troops with so- tional Guard and Reserve personnel to magnificent and unselfish service to called ‘non-battle’ injuries and diseases have make penalty free withdrawals from our Nation. I trust that the measures been evacuated from Iraq.’’. qualified retirement plans; allow em- included in this bill will serve as a (2) This report was a rare disclosure by the ployers a tax deduction for making up Department of Defense, as it is the policy of token of the Nation’s sincere apprecia- the Department of Defense not to disclose the difference between military pay tion for their great sacrifices and serv- publicly the number of Armed Forces per- and civilian income of mobilized re- ice. sonnel that sustain non-combat injuries. servists; and authorize a tax credit to S. 11 Subtitle B—Accounting for Casualties In- small business employers who continue Be it enacted by the Senate and House of Rep- curred in the Prosecution of the Global to compensate members of the Ready resentatives of the United States of America in War on Terrorism Reserve ordered to active duty and for Congress assembled, SEC. 211. MONTHLY ACCOUNTING. costs of hiring a replacement em- SECTION 1. SHORT TITLE. Not later than five days after the end of ployee. This Act may be cited as the ‘‘Standing each month, the Secretary of Defense shall We know that the military pay of With Our Troops Act of 2005’’. publish, for such month for each operation about a third of our mobilized National DIVISION A—FULFILLMENT OF OBLIGA- described in section 212, a full accounting of Guard and Reserve personnel is less TIONS TO THE MEMBERS OF THE the casualties among the members of the than the pay they received from their ARMED FORCES Armed Forces that were incurred in such op- civilian jobs. Many private employers TITLE I—STRENGTHS OF THE ARMY AND eration during that month. already pay a wage differential to MARINE CORPS ACTIVE FORCES SEC. 212. OPERATIONS COVERED. those who lose money, and we will en- SEC. 101. FINDINGS. The operations referred to in section 211 Congress makes the following findings: are as follows: courage more to do so with the tax in- (1) Operation Iraqi Freedom. centives I have just described. The big- (1) While the United States Armed Forces remain the premier fighting force in the (2) Operation Enduring Freedom. gest employer of our Guard and Re- world, the Defense Science Board, in a study (3) Each other operation undertaken by the serve personnel is the Federal Govern- carried out in the summer of 2004, found that Armed Forces in the prosecution of the Glob- ment, and the Federal Government ‘‘When we match the existing and projected al War on Terrorism. should do as much as the private em- force structure with the current and pro- SEC. 213. COMPREHENSIVE CONTENT OF AC- ployers do for those who lose money jected need for stabilization forces we see an COUNTING. while serving our Nation. This bill enduring shortfall in both total numbers of For the purpose of providing a full and would require Federal Agencies to people and their ability to sustain the con- complete accounting of casualties covered by a report under section 211, the Secretary of make up the pay differences for Fed- tinuity of stabilization efforts.’’. (2) Between 1989 and 2004, the military per- Defense shall include in the report the num- eral employees who are ordered to ac- sonnel end strength of the Army has been re- ber of casualties in each casualty status in tive duty. duced by more than 34 percent, and the De- accordance with section 214. Studies have shown that 40 percent of partment of the Army’s civilian workforce SEC. 214. CASUALTY STATUS. our junior enlisted members in the re- has been reduced by more than 45 percent, (a) STATUS TYPES.—In a report under this serve components have no health insur- while the mission rate of the Army has in- title, each casualty among members of the ance except when they are on active creased by 300 percent. Armed Forces shall be characterized by the duty. This bill would provide access to (3) Because of the personnel reductions, the most specific casualty status applicable to the military’s TRICARE health care Army National Guard and the Army Reserve the member as follows: program for all members of the Se- are repeatedly being called to active duty to (1) Killed in action. meet Army mission requirements that the lected Reserve and their families. They (2) Killed in non-hostile duty. active-duty force of the Army is no longer (3) Killed, self-inflicted. would pay a subsidized premium simi- large enough to meet alone. Army National (4) Wounded in action, not returned to lar to the premium charged Federal Guard and Army Reserve units have provided duty. Employees for health care. This will up to 40 percent of the military personnel en- (5) Wounded in action, returned to duty (to help to ensure that members of the Na- gaged in Operation Iraqi Freedom while they the extent that data is available to support tional Guard and Reserves are medi- have also been performing a dramatically in- this characterization of casualty status). cally ready when called to serve in the creased role in homeland defense and con- (6) Evacuated for medical reasons. military. tinuing to respond to natural disasters, (b) DEFINITIONS.—In this section: When a Soldier, Sailor, Airmen or other domestic emergencies, and military (1) KILLED IN ACTION.—The term ‘‘killed in contingencies. As a result, the reserve com- Marine dies on active duty, his sur- action’’, with respect to a member of the ponents of the Army have been pushed to the Armed Forces, means that the member in- vivors currently receive a death gra- breaking point. curred one or more mortal wounds while in- tuity of just over $12,000. This is simply SEC. 102. ARMY. volved in an action against a hostile force, not enough. This bill would raise the (a) STRENGTH FOR FISCAL YEAR 2006.—Ef- whether or not the wounds are inflicted by death gratuity to $100,000, and would fective on October 1, 2005, section 691(b)(1) of the hostile force.

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(2) KILLED IN NON-HOSTILE DUTY.—The term 2003, and 2004, together with a review of the be allowed travel expenses, including per ‘‘killed in non-hostile duty’’, with respect to ranks of the recipients and the mission-re- diem in lieu of subsistence, at rates author- a member of the Armed Forces, means that lated and other circumstances that are asso- ized for employees of agencies under sub- the member incurred one or more mortal ciated with the awarding of the medals and chapter I of chapter 57 of title 5, United wounds that were not self-inflicted and not decorations to those recipients. States Code, while away from the member’s inflicted during an action against a hostile (b) REPORT.— home or regular places of business in the per- force. (1) REQUIREMENT FOR REPORT.—Not later formance of services for the Advisory Panel. (3) KILLED, SELF-INFLICTED.—The term than 18 months after the date of the enact- (e) FEDERAL ADVISORY COMMITTEE ACT.— ‘‘killed, self-inflicted’’, with respect to a ment of this Act, the Advisory Panel shall The Federal Advisory Committee Act (5 member of the Armed Forces, means a sui- submit a report on the results of the review U.S.C. App) shall not apply to the Advisory cide of the member or the death of the mem- under this section to the Secretary of De- Panel. ber as a result of one or more self-inflicted fense and to Congress. SEC. 224. COOPERATION OF FEDERAL AGENCIES. injuries. (2) CONTENT.—The report under this sub- (a) INFORMATION.—The Advisory Panel may (4) WOUNDED IN ACTION, NOT RETURNED TO section shall contain the findings and con- obtain directly from the Department of De- DUTY.—The term ‘‘wounded in action, not re- clusions of the Advisory Panel together with fense, the Department of Veterans Affairs, or turned to duty’’, with respect to a member of any recommendations for action that the any other department or agency of the the Armed Forces, means that the member, panel considers appropriate, and shall in- United States any information of such de- while involved in an action against a hostile clude the following matters: partment or agency that the panel considers force, incurred one or more non-mortal inju- (A) A discussion of the merits of maintain- necessary for the panel to carry out its du- ries that required medical attention and that ing for each of the Armed Forces separate ties. prevented the member from returning to policies for the awarding of comparable med- (b) OTHER COOPERATION.—The Secretary of duty within 72 hours after incurring the in- als and decorations of the Armed Forces, to- Defense, the Secretary of Veterans Affairs, jury or injuries. gether with a discussion of the merits of and any other official of the United States (5) WOUNDED IN ACTION, RETURNED TO adopting uniform standards for awarding shall provide the Advisory Panel with full DUTY.—The term ‘‘wounded in action, re- such medals and decorations. and timely cooperation requested by the turned to duty’’, with respect to a member of (B) Measures that can be taken by each of panel in carrying out its duties under this the Armed Forces, means that the member, the Armed Forces to expedite the process for section. while involved in an action against a hostile timely identifying a member who deserves a SEC. 225. TERMINATION. force, incurred one or more non-mortal inju- medal of decoration, determining the appro- The Advisory Panel on Military Awards ries that required medical attention but did priateness of awarding the medal or decora- and Decorations shall terminate 30 days not prevent the member from returning to tion to the member, and, in each appropriate after the submission of the report to Con- duty within 72 hours after incurring the in- case, awarding the medal or decoration to gress under section 222(b). jury or injuries. the member. TITLE III—MILITARY EQUIPMENT AND (6) EVACUATED FOR MEDICAL REASONS.—The (C) Measures that can be taken to ensure MATERIEL term ‘‘evacuated for medical reasons’’, with that— SEC. 301. FINDINGS. respect to a member of the Armed Forces, (i) members serving in combat are at least Congress makes the following findings: means that the member was evacuated from equally as likely to be considered for the (1) United States military personnel serv- a theater of operations for medical reasons. awarding of medals and decorations as are ing in Operations Iraqi Freedom have experi- SEC. 215. PUBLICATION AND RELEASE OF RE- personnel not exposed to combat; and enced significant shortages of critical equip- PORT. (ii) enlisted personnel are at least as likely ment, such as body armor, aircraft surviv- The Secretary of Defense shall— to be considered for the awarding of medals ability equipment, and armored trucks, in- (1) post the report under this title on the and decorations as are officers. cluding up-armored High Mobility Multipur- official website of the Department of De- (D) A recommendation regarding whether pose Wheeled Vehicles. In many cases the fense; and the Valor device awarded by each of the shortages have lasted several months. For (2) transmit a copy of the report to the Armed Forces should be replaced by a sepa- example, the individual body armor needed chairmen and ranking members of the Com- rate class of medals honoring special bravery for protecting every member of the Armed mittees on Armed Services of the Senate and in combat. Forces and Department of Defense civilians the House of Representatives. (E) A determination of the desirability of in Iraq was not produced and fielded until SEC. 216. SENSE OF CONGRESS. adding a new class of medals, similar to the February 2004, 11 months after Operation It is the sense of Congress that the Sec- Purple Heart, to be awarded to military per- Iraqi Freedom was launched. Shortages of retary of Defense has an obligation to ensure sonnel who incur non-combat injuries in con- armor for Army trucks still existed as of the full and accurate reporting of casualties nection with performance of an official mis- beginning of 2005. among the members of the Armed Forces to sion or duty during a combat operation in (2) Operation Iraqi Freedom and Operation Congress and the people of the United order to honor their sacrifice in service to Enduring Freedom have taken a substantial States. the people of the United States. toll on military equipment of the Armed (c) SCOPE LIMITED TO DEPARTMENT OF DE- Forces. The commanding general of the Subtitle C—Advisory Panel on Military FENSE.—The scope of the review and report Army Material Command estimated in 2004 Awards and Decorations under this section does not include the Coast that the Army is wearing out its equipment SEC. 221. ESTABLISHMENT. Guard. in Iraq and Afghanistan at a rate that could The Secretary of Defense shall establish SEC. 223. COMPOSITION AND ADMINISTRATION. be up to 10 times faster than the rate at within the Department of Defense an Advi- (a) COMPOSITION.— which it wears out its equipment elsewhere sory Panel on Military Awards and Decora- (1) NUMBER; APPOINTMENT.—The Advisory during peacetime, and there are no signifi- tions. Panel shall be composed of not more than cant reserve stocks of that equipment re- SEC. 222. DUTIES. seven members appointed by the Secretary maining. (a) COMPREHENSIVE REVIEW OF MILITARY of Defense. (3) It is a solemn obligation of the United DECORATIONS SYSTEM.—The Advisory Panel (2) GENERAL AND FLAG OFFICERS.—The Sec- States Government to ensure that, whenever shall conduct a comprehensive review of the retary shall ensure that the membership of the Armed Forces are called into battle, the standards and processes used in the Armed the task force includes a retired general or military personnel fighting or supporting the Forces to award medals and decorations to flag officer from each of the Army, Navy, Air battle are provided with the safest, most ef- members of the Armed Forces. The review Force, and Marine Corps who is familiar with fective technology and equipment. shall include the following matters: the policies of the Armed Forces regarding SEC. 302. MOBILIZATION PLANNING AND PRE- (1) An examination and evaluation of the military awards and decorations. PAREDNESS. standards of each of the Armed Forces for (3) VETERANS.—The Secretary shall ap- (a) DIRECTOR OF MOBILIZATION PLANNING awarding each medal and decoration. point at least one representative of a leading AND PREPAREDNESS.—Title I of the National (2) A comparison of the standards of each veterans’ advocacy organization as a mem- Security Act of 1947 (50 U.S.C. 402 et seq.) is of the Armed Forces with the standards of ber of the Advisory Panel. amended by striking section 107 and insert- each of the other Armed Forces for awarding (b) TIME FOR APPOINTMENT.—All members ing the following new sections: comparable medals and decorations. of the Advisory Panel shall be appointed ‘‘DIRECTOR OF MOBILIZATION PLANNING AND (3) An examination and evaluation of the within 60 days after the date of the enact- PREPAREDNESS speed with which— ment of this Act. ‘‘SEC. 107. DEFINITIONS.—In this section: (A) each of the Armed Forces identifies and (c) CHAIRPERSON.—The chairperson of the ‘‘(1) The term ‘Director’ means the Direc- considers members for the awarding of med- Advisory Panel shall be selected from among tor of Mobilization Planning and Prepared- als and decorations; and the members of the Advisory Panel by a ma- ness referred to in subsection (b)(1), except (B) the medals and decorations are ulti- jority vote of the members. where the context clearly indicates other- mately awarded. (d) COMPENSATION AND EXPENSES OF MEM- wise. (4) A review of the medals and decorations BERS.—Each member of the Advisory Panel ‘‘(2) The term ‘national security emer- awarded by the Armed Forces during 2002, shall serve without compensation, but shall gency’ means any occurrence, including a

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natural disaster, a military or terrorist at- ‘‘(B) DEPARTMENT OF DEFENSE PRIMARY AL- ‘‘(2) The Under Secretary for Emergency tack against the territory of the United LOCATION OF INDUSTRIAL RESOURCES TASK Preparedness and Response of the Depart- States, a military operation carried out by FORCE.—The Director serves as a member of ment of Homeland Security. the Armed Forces abroad, a technological the Primary Allocation of Industrial Re- ‘‘(3) The Under Secretary of State for Eco- emergency, or any other emergency, that ei- sources Task Force of the Department of De- nomic, Business, and Agricultural Affairs. ther seriously degrades or threatens the se- fense. ‘‘(4) The Under Secretary of Defense for curity of the United States or the Armed ‘‘(d) OFFICE OF MOBILIZATION PLANNING AND Acquisition, Technology, and Logistics. Forces. PREPAREDNESS.— ‘‘(5) The Associate Attorney General. ‘‘(3) The term ‘mobilization’ means the act ‘‘(1) ESTABLISHMENT.—There is an Office of ‘‘(6) The Assistant Secretary of the Inte- of assembling and organizing national re- Mobilization Planning and Preparedness rior for Land and Minerals Management. sources, including military personnel and within the National Security Council. The ‘‘(7) The Under Secretary of Commerce for equipment, labor, transportation systems, Director is the head of the office. Industry and Security. industry, and financial resources, to support ‘‘(2) COMPOSITION.—The Office of Mobiliza- ‘‘(8) The Deputy Secretary of Labor. national objectives of the United States in tion Planning and Preparedness is composed ‘‘(9) The Assistant Secretary of Health and time of a national security emergency. of the following personnel: Human Services for Public Health Emer- ‘‘(4) The term ‘mobilization planning and ‘‘(A) Thirty employees appointed by the gency Preparedness. preparedness’ means all aspects of planning Assistant to the President for National Secu- ‘‘(10) The Under Secretary of Transpor- and preparing for a mobilization for a na- rity Affairs. tation for Policy. tional security emergency, including the ‘‘(B) An employee of the Department of De- ‘‘(11) The Under Secretary of Energy for identification of functions that would have fense, who shall be detailed to the Office by Energy, Science, and Environment. to be performed during a national security the Under Secretary of Defense for Acquisi- ‘‘(12) One member designated by the Assist- emergency, development of plans for per- tion, Technology, and Logistics to serve as ant to the President for National Security forming such functions, development of the liaison between the Department of Defense Affairs. capability to execute such plans, and devel- and the Director to ensure that comprehen- ‘‘(13) One member designated by the Direc- opment of policies that maximize the speed sive and accurate information on the needs tor of National Intelligence. and efficiency with which such plans can be of the Armed Forces for equipment and ma- ‘‘(d) DUTIES.—The Committee has the fol- executed during a national security emer- teriel in a national security emergency are lowing duties: gency. timely communicated to the Director. ‘‘(1) To review, at least once each year, the ‘‘(b) POSITION OF DIRECTOR.— ‘‘(e) COORDINATION WITH NATIONAL mobilization planning and preparedness poli- ‘‘(1) ESTABLISHMENT.—There is a Director COUNTERTERRORISM CENTER.— cies of the United States. of Mobilization Planning and Preparedness ‘‘(1) LIAISON OFFICER.—The Director shall ‘‘(2) To make any recommendations for ac- on the staff of the National Security Coun- detail an employee of the Office to the Na- tion to improve mobilization planning and cil. tional Counterterrorism Center to serve as a preparedness that the Committee determines ‘‘(2) APPOINTMENT.—The Director is ap- liaison officer between the Director of Mobi- appropriate. pointed by the Assistant to the President for lization Planning and Preparedness and the ‘‘(3) To participate in the exercises con- National Security Affairs. Director of the National Counterterrorism ducted by the Director of Mobilization Plan- ‘‘(3) RELATIONSHIP TO NATIONAL SECURITY Center for collaboration on ning and Preparedness of the Department ADVISOR.—The Director reports directly to counterterrorism-related information and under section 510(b)(2)(F).’’. the Assistant to the President for National issues necessary for effective mobilization (b) CLERICAL AMENDMENT.—The table of Security Affairs. planning and preparedness. contents in the first section of the National ‘‘(c) DUTIES.— ‘‘(2) RESPONSIBILITY OF DIRECTOR OF NA- Security Act of 1947 is amended by striking ‘‘(1) PRINCIPAL DUTY.—The Director is the TIONAL COUNTERTERRORISM CENTER.—The Di- the item relating to section 107 and inserting principal adviser to the Assistant to the rector of the National Counterterrorism Cen- the following new items: President for National Security Affairs on ter shall ensure that the liaison officer is ac- ‘‘Sec. 107. Director of Mobilization Planning matters of mobilization planning and pre- corded such privileges at the Center as are and Preparedness. paredness. necessary to ensure that the collaboration ‘‘Sec. 107A. Mobilization Planning and Pre- ‘‘(2) SPECIFIC DUTIES.—The duties of the Di- between the Director of the National paredness Policy Coordinating rector include the following: Counterterrorism Center and the Director of Committee.’’. ‘‘(A) Identify which governmental and pri- Mobilization Planning and Preparedness on SEC. 303. REPORT ON RECONSTITUTION NEEDS vate sector functions must be performed on a counterterrorism-related information and OF THE ARMED FORCES. sustained basis during a national security issues is effective. (a) REPORT REQUIRED.— emergency. ‘‘(f) ANNUAL REPORT.— (1) REQUIREMENT FOR REPORT.—Not later ‘‘(B) Develop plans for the sustained per- ‘‘(1) REQUIREMENT FOR REPORT.—The Presi- than March 1, 2005, the Secretary of Defense formance of the identified functions. dent, acting through the Director, shall sub- shall submit to the congressional defense ‘‘(C) Provide guidance on the development mit to Congress each year a report on mobi- committees a report on the needs of the of the capability to execute the plans. lization planning and preparedness. Armed Forces for reconstituting its stocks of ‘‘(D) Recommend policies for the maxi- ‘‘(2) CONTENT.—The annual report under military equipment and other materiel in mization of the speed and efficiency with this subsection shall include the following view of the attrition of military equipment which the plans can be executed during a na- information: and other materiel experienced by the tional security emergency. ‘‘(A) Funding needs for mobilization plan- Armed Forces in Operation Iraqi Freedom ‘‘(E) Recommend planning and policy guid- ning and preparedness. and Operation Enduring Freedom. ance regarding involvement of the National ‘‘(B) An assessment of the state of mobili- (2) CONSULTATION.—The Secretary shall Guard in 2 or more national security emer- zation planning and preparedness in the consult with the Chief of Staff of the Army, gency operations concurrently. United States. the Chief of Staff of the Air Force, the Chief ‘‘(F) Administer quarterly exercises simu- ‘‘(C) Any recommended policies on mobili- of Naval Operations, the Commandant of the lating mobilization for various types of na- zation planning and preparedness that the Marine Corps, and the Inspector General of tional security emergencies, including the President, in consultation with the Assistant each of the Armed Forces in preparing the following: to the President for National Security Af- report under this section. ‘‘(i) A major military operation carried out fairs and the Director, considers appropriate. (b) CONTENT.—The report shall include an in and around 1 or more foreign countries. assessment of each of the following matters: ‘‘MOBILIZATION PLANNING AND PREPAREDNESS ‘‘(ii) An occupation and reconstruction (1) The extent of the damage and destruc- POLICY COORDINATING COMMITTEE mission. tion of military equipment and other mili- ‘‘(iii) A terrorist attack within the United ‘‘SEC. 107A. (a) MOBILIZATION PLANNING AND tary materiel in Operation Iraqi Freedom States. PREPAREDNESS DEFINED.—In this section, the and Operation Enduring Freedom. ‘‘(iv) A natural disaster within the United term ‘mobilization planning and prepared- (2) The amount of such equipment, if any, States. ness’ has the meaning given that term in that has become ineffective or obsolete by ‘‘(v) A major humanitarian crisis in 1 or section 107(a). age or other causes. more foreign countries. ‘‘(b) ESTABLISHMENT.—There is in the exec- (3) The needs of each of the Armed Forces, ‘‘(vi) A minor military intervention in a utive branch an interagency committee including the reserve components as well as foreign country. known as the ‘Mobilization Planning and the regular components, for repair and re- ‘‘(3) RELATED DUTIES.— Preparedness Policy Coordinating Com- placement of equipment. ‘‘(A) MOBILIZATION PLANNING AND PRE- mittee’. (4) The total cost of reconstituting the PAREDNESS POLICY COORDINATING COM- ‘‘(c) COMPOSITION.—The Committee shall be stocks of military equipment and other ma- MITTEE.—The Director serves on the Mobili- composed of the following members: teriel of the Armed Forces to meet the needs zation Planning and Preparedness Policy Co- ‘‘(1) The Director of Mobilization Planning of the Armed Forces. ordinating Committee as provided in section and Preparedness of the National Security (5) The time needed to reconstitute such 107A. Council, who shall chair the committee. stocks to meet those needs.

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(c) FORM OF REPORT.—The report shall be (4) Fairness to the men and women of the sources of the National Guard and the other submitted in unclassified form, but may in- Armed Forces deployed overseas requires reserve components. clude a classified annex. that the Department of Defense— (c) MATTERS FOR PARTICULAR EMPHASIS.— SEC. 304. AUTHORIZATIONS OF APPROPRIA- (A) have clear policies regarding lengths of In the discussion of the matters included in TIONS. deployment periods; and the report under this section, the Secretary (a) ARMY.—Funds are hereby authorized to (B) communicate these policies and other of Defense shall place particular emphasis be appropriated for fiscal year 2005 for the deployment-related information to them and on— use of the Army for the repair, refurbish- their families. (1) lessons learned, including deficiencies identified; and ment, and replacement of equipment used by SEC. 402. SENSE OF CONGRESS ON TWO-YEAR the Army in Operation Iraqi Freedom or Op- LIMIT ON MOBILIZATION. (2) near-term and long-term corrective ac- eration Enduring Freedom, as follows: It is the sense of Congress that the Sec- tions to address the identified deficiencies. (1) OPERATION AND MAINTENANCE.—For ex- (d) FORM OF REPORT.—The report under retary of Defense should continue the exist- this section shall be submitted in unclassi- penses, not otherwise provided for, for oper- ing Department of Defense policy of limiting ation and maintenance, $6,000,000,000. fied form, but may include a classified to a total of 24 months the period for which annex. (2) PROCUREMENT.—For procurement, members of the reserve components serve on $2,500,000,000. active duty to which called or ordered in TITLE V——TIMELY COMPENSATION (b) MARINE CORPS.—Fund are hereby au- support of a contingency operation. SEC. 501. FINDINGS. thorized to be appropriated for fiscal year Congress makes the following findings: SEC. 403. COMMUNICATION OF LENGTHS OF DE- 2005 for the use of the Marine Corps for the (1) In November 2003, the General Account- repair, refurbishment, and replacement of PLOYMENT PERIODS TO RESERVES IN OPERATION IRAQI FREEDOM. ing Office reported, in connection with a equipment used by the Marine Corps in Oper- study conducted by that office, that among (a) REPORT OF DEPARTMENT OF DEFENSE ation Iraqi Freedom or Operation Enduring Army National Guard soldiers ‘‘450 of the 481 POLICIES.— Freedom, as follows: soldiers from our 6 case study units had at (1) OPERATION AND MAINTENANCE.—For ex- (1) REQUIREMENT FOR REPORT.—Not later than March 1, 2005, the Secretary of Defense least 1 pay problem associated with their penses, not otherwise provided for, for oper- mobilization. These pay problems severely ation and maintenance, $640,000,000. shall submit to the Committees on Armed Services of the Senate and the House of Rep- constrain the Army’s and the Department of (2) PROCUREMENT.—For procurement, Defense’s (DOD) ability to provide a most resentatives a report on— $1,500,000,000. basic service to these personnel, many of (A) Department of Defense policies gov- (c) AVAILABILITY THROUGH FISCAL YEAR whom were risking their lives in combat.’’. erning the length of mobilization and deploy- 2006.—Amounts authorized to be appro- (2) In August 2004, a second study by that ment periods applicable to members of re- priated under this section shall remain office (by then renamed the Government Ac- serve components of the Armed Forces in available until September 30, 2006. countability Office) found that among Army (d) LIMITATION.—None of the funds appro- connection with Operation Iraqi Freedom, Reserve soldiers ‘‘332 of 348 soldiers (95 per- priated pursuant to an authorization of ap- and on the communication between the De- cent) we audited at 8 case study units that propriations in this section may be obligated partment of Defense and reserve component were mobilized, deployed, and demobilized at or expended until the date that is 15 days personnel and their families regarding the some time during the 18-month period from after the date on which the Secretary of De- lengths of the mobilization deployment peri- August 2002 through January 2004 had at fense transmits to the congressional defense ods; and committees a report on the specific use for least 1 pay problem.’’. (B) Department of Defense stop-loss poli- (3) The August 2004 report concluded that which the funds are to be obligated or ex- cies. pended, respectively. ‘‘These pay problems often had a profound (2) CONSULTATION REQUIREMENT.—In pre- adverse impact on individual soldiers and SEC. 305. CONGRESSIONAL DEFENSE COMMIT- paring the report, the Secretary shall con- TEES DEFINED. their families. For example, soldiers were re- sult with the Chairman and other members quired to spend considerable time, some- In this title, the term ‘‘congressional de- of the Joint Chiefs of Staff and with such fense committees’’ has the meaning given times while deployed in remote, hostile envi- other officials as the Secretary considers ap- ronments overseas, seeking help on pay in- such term in section 101(a)(16) of title 10, propriate. United States Code. quiries or in correcting errors in their active (b) CONTENT OF REPORT.—The report under duty pays, allowances, and related tax bene- TITLE IV—PERIODS OF OVERSEAS this section shall contain a discussion of the fits.’’. DEPLOYMENTS OF RESERVES matters described in subsection (a)(1), in- SEC. 502. CORRECTION OF MILITARY PAY PROB- SEC. 401. FINDINGS. cluding a discussion of the following mat- LEMS FOR ACTIVATED RESERVE Congress makes the following findings: ters: COMPONENT PERSONNEL. (1) The Department of Defense failed to es- (1) The process by which the Department of The Secretary of the Army shall designate tablish an adequate troop deployment and Defense determined its policy regarding the a senior level official of the Department of rotation policy for Operation Iraqi Freedom lengths of mobilization deployment periods. the Army to implement— until several months after the operation had (2) The reason that an adequate troop de- (1) the recommendations for executive ac- begun. For several reserve component units ployment policy was not in place before Op- tion that are set forth in the report of the involved in that operation before 2005, the eration Iraqi Freedom began. Comptroller General of the United States en- demobilization date was rescheduled three or (3) A comparison of the policies during Op- titled ‘‘Military Pay, Army National Guard more times before the unit members were fi- eration Iraqi Freedom with Department of Personnel Mobilized to Active Duty Experi- nally allowed to return home. Defense policies that applied to previous enced Significant Pay Problems’’, dated No- (2) Without an adequate deployment and contingency operations. vember 2003; and rotation plan, the Department of Defense has (4) The timeliness of the process for noti- (2) the recommendations for executive ac- relied on a series of stop-gap measures to re- fying reserve component units for activa- tion that are set forth in the report of the tain a sufficient number of troops to carry tion. Comptroller General of the United States en- out the United States missions in Operation (5) The process for communicating with ac- titled ‘‘Military Pay, Army Reserve Soldiers Iraqi Freedom and Operation Enduring Free- tivated reserve component members and Mobilized to Active Duty Experienced Sig- dom, including— their families about demobilization sched- nificant Pay Problems’’, dated August 2004. (A) institution of a so-called ‘‘stop-loss’’ ules. SEC. 503. SUPERVISION BY COMPTROLLER OF DE- policy that prevents personnel from leaving (6) The justification for delaying demobili- PARTMENT OF DEFENSE. their units during deployment; zation after members and their families have The official designated under section 502 (B) extensions of deployments beyond been notified of the anticipated demobiliza- shall report directly to, and be subject to the scheduled demobilization dates; and tion schedule. direction of, the Under Secretary of Defense (C) activation of members of the Individual (7) The justification for current stop-loss (Comptroller) regarding performance of the Ready Reserve. policies, together with a statement of the pe- duties that the official is designated to carry (3) In September 2004, the Government Ac- riod for which those policies are to remain in out under such section. countability Office reported that ‘‘Many of effect and the conditions under which man- SEC. 504. TERMINATION OF REQUIREMENT. DOD’s policies that affect mobilized reserve agement of personnel under those policies The designation under section 502 shall ter- component personnel were implemented in a would terminate. minate upon the submission of a certifi- piecemeal manner and were not linked with- (8) The family support programs provided cation of the Under Secretary of Defense in the context of a strategic framework to by the National Guard and other reserve (Comptroller) to Congress that all rec- meet the organizational goals.... Without components for families of activated Re- ommendations referred to in such section a strategic framework, OSD and the services serves. have been implemented. made several changes to their personnel poli- (9) An assessment of lessons learned about TITLE VI—IMPROVED REPRESENTATION cies to increase the availability of the re- how the increased operation tempos of the OF RESERVE PERSONNEL INTERESTS IN serve components for the longer-term re- National Guard and other reserve compo- DEPARTMENT OF DEFENSE SECRE- quirements of the Global War on Terrorism, nents can be expected to affect readiness, re- TARIAT and predictability declined for reserve com- cruitment and retention, civilian employers SEC. 601. FINDINGS. ponent members.’’. of Reserves, and equipment and supply re- Congress makes the following findings:

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00045 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S152 CONGRESSIONAL RECORD — SENATE January 24, 2005 (1) Since September 11, 2001, the National September 11, 2001, terrorist attacks and the shall be treated as a payment of wages by Guard and the other reserve components of global war on terrorism have triggered the the employer to the employee. the Armed Forces have experienced an ex- largest activation of National Guard forces ‘‘(2) DIFFERENTIAL WAGE PAYMENT.—For pansion of their role in the total force struc- since World War II. As of June 2004, over one- purposes of paragraph (1), the term ‘differen- ture of the Armed Forces to an unprece- half of the National Guard’s 457,000 personnel tial wage payment’ means any payment dented level. In 2004, the reserve components had been activated for overseas warfighting which— comprised 40 percent of the total force of the or domestic homeland security missions in ‘‘(A) is made by an employer to an indi- Armed Forces. Reservists are experiencing a Federal and State active duty roles.’’. In all, vidual with respect to any period during dramatic increase in operation tempo and over 400,000 reservists have been mobilized which the individual is performing service in average length of deployment. between September 11, 2001, and the begin- the uniformed services while on active duty (2) While the extent of the role of the re- ning of 2005. for a period of more than 30 days, and serve component has changed so dramati- (2) In March 2003, the General Accounting ‘‘(B) represents all or a portion of the cally, the Department of Defense approach Office reported that among members of the wages the individual would have received to management of the reserve components National Guard and other reserve compo- from the employer if the individual were per- has remained much the same. No new senior nents of the Armed Forces ‘‘. . . data for forming service for the employer.’’. past military operations show that 41 per- leadership positions have been established to (b) EFFECTIVE DATE.—The amendment cent of drilling unit members reported in- manage the reserve components more effec- made by subsection (a) shall apply to remu- come loss . . .’’. The report further noted tively in the expanded role. neration paid after December 31, 2004. SEC. 602. DEPUTY UNDER SECRETARY OF DE- that senior officers in the reserve component FENSE FOR PERSONNEL AND READI- reported average losses of $5,000 in income SEC. 2104. TREATMENT OF DIFFERENTIAL WAGE NESS (RESERVE AFFAIRS). upon activation. PAYMENTS FOR RETIREMENT PLAN PURPOSES. (a) ESTABLISHMENT OF POSITION.— (3) Not only has operation tempo dras- (1) POSITION AND DUTIES.—Chapter 4 of title tically increased for members of the reserve (a) PENSION PLANS.— 10, United States Code, is amended by insert- components, meaning that reservists are (1) IN GENERAL.—Section 414(u) of the In- ing after section 136a the following new sec- being called away from their civilian jobs ternal Revenue Code of 1986 (relating to spe- tion: more often, but also the durations of deploy- cial rules relating to veterans’ reemploy- ments have increased dramatically as well, ‘‘§ 136b. Deputy Under Secretary of Defense ment rights under USERRA) is amended by meaning that reservists are being called for Personnel and Readiness (Reserve Af- adding at the end the following new para- away from their civilian jobs for longer peri- fairs) graph: ods. The Government Accountability Office ‘‘(11) TREATMENT OF DIFFERENTIAL WAGE ‘‘(a) There is a Deputy Under Secretary of reported in September 2004 that the average Defense for Personnel and Readiness (Re- PAYMENTS.— annual days of duty performed by members ‘‘(A) IN GENERAL.—Except as provided in serve Affairs), appointed from civilian life by of the reserve components has risen from ap- the President, by and with the advice and this paragraph, for purposes of applying this proximately 40 days in 1989 to approximately title to a retirement plan to which this sub- consent of the Senate. 120 days in 2003. A consequence of both in- ‘‘(b) The Deputy Under Secretary of De- section applies— creased operations tempo and increased du- ‘‘(i) an individual receiving a differential fense for Personnel and Readiness (Reserve ration of deployment has been a far greater Affairs) shall have as his principal duty the wage payment shall be treated as an em- loss of income for reservists answering their ployee of the employer making the payment, overall supervision of reserve component af- country’s call to duty. fairs of the Department of Defense.’’. ‘‘(ii) the differential wage payment shall be SEC. 2102. PENALTY-FREE WITHDRAWALS FROM treated as compensation, and (2) CLERICAL AMENDMENT.—The table of RETIREMENT PLANS FOR INDIVID- sections at the beginning of such chapter is UALS CALLED TO ACTIVE DUTY FOR ‘‘(iii) the plan shall not be treated as fail- amended by inserting after the item relating AT LEAST 179 DAYS. ing to meet the requirements of any provi- to section 136a the following new item: (a) IN GENERAL.—Paragraph (2) of section sion described in paragraph (1)(C) by reason of any contribution which is based on the ‘‘136b. Deputy Under Secretary of Defense for 72(t) of the Internal Revenue Code of 1986 (re- differential wage payment. Personnel and Readiness (Re- lating to 10-percent additional tax on early ‘‘(B) SPECIAL RULE FOR DISTRIBUTIONS.— serve Affairs).’’. distributions from qualified retirement plans) is amended by adding at the end the ‘‘(i) IN GENERAL.—Notwithstanding sub- (b) EXECUTIVE LEVEL IV.—Section 5315 of following new subparagraph: paragraph (A)(i), for purposes of section title 5, United States Code, is amended by in- ‘‘(G) DISTRIBUTIONS FROM RETIREMENT 401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii), 403(b)(11)(A), serting after ‘‘Deputy Under Secretary of De- PLANS TO INDIVIDUALS CALLED TO ACTIVE or 457(d)(1)(A)(ii), an individual shall be fense for Personnel and Readiness.’’ the fol- DUTY.— treated as having been severed from employ- lowing: ‘‘(i) IN GENERAL.—Any qualified reservist ment during any period the individual is per- ‘‘Deputy Under Secretary of Defense for distribution. forming service in the uniformed services de- Personnel and Readiness (Reserve Affairs).’’. ‘‘(ii) QUALIFIED RESERVIST DISTRIBUTION.— scribed in section 3401(i)(2)(A). SEC. 603. ELIMINATION OF POSITION OF ASSIST- For purposes of this subparagraph, the term ‘‘(ii) LIMITATION.—If an individual elects to ANT SECRETARY OF DEFENSE FOR ‘qualified reservist distribution’ means any receive a distribution by reason of clause (i), RESERVE AFFAIRS. distribution to an individual if— the plan shall provide that the individual (a) REPEAL OF REQUIREMENT FOR POSI- ‘‘(I) such distribution is from any qualified may not make an elective deferral or em- TION.—Subsection (b) of section 138 of title retirement plan (as defined in section ployee contribution during the 6-month pe- 10, United States Code, is amended— 4974(c)), riod beginning on the date of the distribu- (1) by striking paragraph (2); and ‘‘(II) such individual was (by reason of tion. (2) by redesignating paragraphs (3), (4), and being a member of a reserve component (as ‘‘(C) NONDISCRIMINATION REQUIREMENT.— (5), as paragraphs (2), (3), and (4), respec- defined in section 101 of title 37, United Subparagraph (A)(iii) shall apply only if all tively. States Code)), ordered or called to active employees of an employer performing service (b) REDUCTION IN TOTAL NUMBER OF ASSIST- duty for a period in excess of 179 days or for in the uniformed services described in sec- ANT SECRETARIES OF DEFENSE.— an indefinite period, and tion 3401(i)(2)(A) are entitled to receive dif- (1) AUTHORIZED NUMBER.—Subsection (a) of ‘‘(III) such distribution is made during the ferential wage payments on reasonably such section is amended by striking ‘‘nine’’ period beginning on the date of such order or equivalent terms and, if eligible to partici- and inserting ‘‘eight’’. call and ending at the close of the active pate in a retirement plan maintained by the (2) CONFORMING AMENDMENT.—Section 5315 duty period. employer, to make contributions based on of title 5, United States Code, is amended by ‘‘(iii) APPLICATION OF SUBPARAGRAPH.—This the payments. For purposes of applying this striking ‘‘(9)’’ after ‘‘Assistant Secretaries of subparagraph applies to individuals ordered subparagraph, the provisions of paragraphs Defense’’ and inserting ‘‘(8)’’. or called to active duty after September 11, (3), (4), and (5), of section 410(b) shall apply. (c) EFFECTIVE DATE.—The amendments 2001, and before September 12, 2005.’’. ‘‘(D) DIFFERENTIAL WAGE PAYMENT.—For made by subsections (a) and (b) shall take ef- (b) EFFECTIVE DATE.—The amendment purposes of this paragraph, the term ‘dif- fect on the date on which a person is first ap- made by subsection (a) shall apply to dis- ferential wage payment’ has the meaning pointed as Deputy Under Secretary of De- tributions after September 11, 2001. given such term by section 3401(i)(2).’’. fense for Personnel and Readiness (Reserve SEC. 2103. INCOME TAX WITHHOLDING ON DIF- (2) CONFORMING AMENDMENT.—The heading Affairs). FERENTIAL WAGE PAYMENTS. for section 414(u) of such Code is amended by (a) IN GENERAL.—Section 3401 of the Inter- DIVISION B—MILITARY FAMILY inserting ‘‘AND TO DIFFERENTIAL WAGE PAY- nal Revenue Code of 1986 (relating to defini- PROTECTIONS MENTS TO MEMBERS ON ACTIVE DUTY’’ after tions) is amended by adding at the end the ‘‘USERRA’’. TITLE XXI—GUARDSMEN AND following new subsection: RESERVISTS FINANCIAL RELIEF ‘‘(i) DIFFERENTIAL WAGE PAYMENTS TO AC- (b) DIFFERENTIAL WAGE PAYMENTS TREAT- SEC. 2101. FINDINGS. TIVE DUTY MEMBERS OF THE UNIFORMED ED AS COMPENSATION FOR INDIVIDUAL RETIRE- Congress makes the following findings: SERVICES.— MENT PLANS.—Section 219(f)(1) of the Inter- (1) According to a Government Account- ‘‘(1) IN GENERAL.—For purposes of sub- nal Revenue Code of 1986 (defining compensa- ability Office report in November 2004, ‘‘The section (a), any differential wage payment tion) is amended by adding at the end the

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following new sentence: ‘‘The term ‘com- ‘‘(B) SMALL BUSINESS EMPLOYER.— (10), (11), and (12) as paragraphs (11), (12), and pensation’ includes any differential wage ‘‘(i) IN GENERAL.—The term ‘small business (13), respectively, and by inserting after payment (as defined in section 3401(i)(2)).’’. employer’ means, with respect to any tax- paragraph (9) the following new paragraph: (c) EFFECTIVE DATE.—The amendments able year, any employer who employed an ‘‘(10) QUALIFIED REPLACEMENT EMPLOYEE.— made by this section shall apply to plan average of 50 or fewer employees on business ‘‘(A) IN GENERAL.—The term ‘qualified re- years beginning after December 31, 2004. days during such taxable year. placement employee’ means an individual (d) PROVISIONS RELATING TO PLAN AMEND- ‘‘(ii) CONTROLLED GROUPS.—For purposes of who is certified by the designated local agen- MENTS.— clause (i), all persons treated as a single em- cy as being hired by an eligible taxpayer to (1) IN GENERAL.—If this subsection applies ployer under subsection (b), (c), (m), or (o) of replace a Ready Reserve-National Guard em- to any plan or annuity contract amend- section 414 shall be treated as a single em- ployee of such taxpayer, but only with re- ment— ployer. spect to the period during which such Ready (A) such plan or contract shall be treated ‘‘(2) QUALIFIED ACTIVE DUTY.—The term Reserve-National Guard employee partici- as being operated in accordance with the ‘qualified active duty’ means— pates in qualified active duty, including time terms of the plan or contract during the pe- ‘‘(A) active duty under an order or call for spent in travel status. riod described in paragraph (2)(B)(i), and a period in excess of 179 days or for an indefi- ‘‘(B) GENERAL DEFINITIONS AND SPECIAL (B) except as provided by the Secretary of nite period, other than the training duty RULES.—For purposes of this paragraph— the Treasury, such plan shall not fail to specified in section 10147 of title 10, United ‘‘(i) ELIGIBLE TAXPAYER.—The term ‘eligi- meet the requirements of the Internal Rev- States Code (relating to training require- ble taxpayer’ means a small business em- enue Code of 1986 or the Employee Retire- ments for the Ready Reserve), or section ployer. ment Income Security Act of 1974 by reason 502(a) of title 32, United States Code (relat- ‘‘(ii) SMALL BUSINESS EMPLOYER.— of such amendment. ing to required drills and field exercises for ‘‘(I) IN GENERAL.—The term ‘small business (2) AMENDMENTS TO WHICH SECTION AP- the National Guard), in connection with employer’ means, with respect to any tax- PLIES.— which an employee is entitled to reemploy- able year, any employer who employed an (A) IN GENERAL.—This subsection shall ment rights and other benefits or to a leave average of 50 or fewer employees on business apply to any amendment to any plan or an- of absence from employment under chapter days during such taxable year. nuity contract which is made— 43 of title 38, United States Code, and ‘‘(II) CONTROLLED GROUPS.—For purposes of (i) pursuant to any amendment made by ‘‘(B) hospitalization incident to such duty. subclause (I), all persons treated as a single this section, and ‘‘(3) COMPENSATION.—The term ‘compensa- employer under subsection (b), (c), (m), or (o) (ii) on or before the last day of the first tion’ means any remuneration for employ- of section 414 shall be treated as a single em- plan year beginning on or after January 1, ment, whether in cash or in kind, which is ployer. 2007. paid or incurred by a taxpayer and which is ‘‘(iii) READY RESERVE-NATIONAL GUARD EM- (B) CONDITIONS.—This subsection shall not deductible from the taxpayer’s gross income PLOYEE.—The term ‘Ready Reserve-National apply to any plan or annuity contract under section 162(a)(1). Guard employee’ has the meaning given such amendment unless— ‘‘(4) READY RESERVE-NATIONAL GUARD EM- term by section 45J(d)(3). (i) during the period beginning on the date PLOYEE.—The term ‘Ready Reserve-National ‘‘(iv) QUALIFIED ACTIVE DUTY.—The term the amendment described in subparagraph Guard employee’ means an employee who is ‘qualified active duty’ has the meaning given (A)(i) takes effect and ending on the date de- a member of the Ready Reserve of a reserve such term by section 45J(d)(1). scribed in subparagraph (A)(ii) (or, if earlier, component of an Armed Force of the United ‘‘(C) DISALLOWANCE FOR FAILURE TO COMPLY the date the plan or contract amendment is States as described in sections 10142 and WITH EMPLOYMENT OR REEMPLOYMENT RIGHTS adopted), the plan or contract is operated as 10101 of title 10, United States Code. OF MEMBERS OF THE RESERVE COMPONENTS OF if such plan or contract amendment were in ‘‘(5) CERTAIN RULES TO APPLY.—Rules simi- THE ARMED FORCES OF THE UNITED STATES.— effect; and lar to the rules of section 52 shall apply. No credit shall be allowed under subsection (ii) such plan or contract amendment ap- ‘‘(e) TERMINATION.—This section shall not (a) by reason of paragraph (1)(I) to a tax- plies retroactively for such period. apply to any amount paid or incurred after payer for— SEC. 2105. READY RESERVE-NATIONAL GUARD December 31, 2005.’’. ‘‘(i) any taxable year, beginning after the EMPLOYEE CREDIT AND READY RE- (2) CREDIT TO BE PART OF GENERAL BUSINESS date of the enactment of this section, in SERVE-NATIONAL GUARD REPLACE- CREDIT.—Subsection (b) of section 38 of the MENT EMPLOYEE CREDIT. which the taxpayer is under a final order, Internal Revenue Code of 1986 (relating to judgment, or other process issued or required (a) READY RESERVE-NATIONAL GUARD CRED- general business credit) is amended by strik- IT.— by a district court of the United States ing ‘‘plus’’ at the end of paragraph (18), by (1) IN GENERAL.—Subpart D of part IV of under section 4323 of title 38 of the United striking the period at the end of paragraph subchapter A of chapter 1 of the Internal States Code with respect to a violation of (19) and inserting ‘‘, plus’’, and by adding at Revenue Code of 1986 (relating to business-re- chapter 43 of such title, and the end the following: lated credits) is amended by inserting after ‘‘(ii) the 2 succeeding taxable years.’’. ‘‘(20) the Ready Reserve-National Guard section 45I the following new section: (3) EFFECTIVE DATE.—The amendments employee credit determined under section made by this subsection shall apply to ‘‘SEC. 45J. READY RESERVE-NATIONAL GUARD 45J(a).’’. EMPLOYEE CREDIT. amounts paid or incurred to an individual (3) DENIAL OF DOUBLE BENEFIT.—Section ‘‘(a) GENERAL RULE.—For purposes of sec- who begins work for the employer after Sep- 280C(a) of the Internal Revenue Code of 1986 tion 38, in the case of an eligible taxpayer, tember 30, 2004. (relating to rule for employment credits) is the Ready Reserve-National Guard employee (c) STUDY BY GAO.— credit determined under this section for any amended by inserting ‘‘45J(a),’’ after ‘‘45A(a),’’. (1) IN GENERAL.—The Comptroller General taxable year with respect to each Ready Re- of the United States shall study the fol- serve-National Guard employee of such tax- (4) CONFORMING AMENDMENT.—The table of sections for subpart D of part IV of sub- lowing: payer is an amount equal to 50 percent of the (A) What, if any, problems exist in recruit- lesser of— chapter A of chapter 1 of the Internal Rev- enue Code of 1986 is amended by inserting ing individuals for a reserve component of an ‘‘(1) the actual compensation amount with Armed Force of the United States. respect to such employee for such taxable after the item relating to section 45I the fol- lowing: (B) What, if any, problems exist as the re- year, or sult of providing differential wage payments ‘‘(2) $30,000. ‘‘Sec. 45J. Ready Reserve-National Guard (as defined in section 3401(i)(2) of the Inter- ‘‘(b) DEFINITION OF ACTUAL COMPENSATION employee credit.’’. nal Revenue Code of 1986 (as added by this AMOUNT.—For purposes of this section, the Act)) to individuals described in subpara- term ‘actual compensation amount’ means (5) EFFECTIVE DATE.—The amendments graph (A) in the recruitment and retention the amount of compensation paid or incurred made by this subsection shall apply to of individuals as regular members of the by an eligible taxpayer with respect to a amounts paid or incurred after September 30, Ready Reserve-National Guard employee on 2004, in taxable years ending after such date. Armed Forces of the United States. any day when the employee was absent from (b) READY RESERVE-NATIONAL GUARD RE- (C) Whether the credit allowed under sec- employment for the purpose of performing PLACEMENT EMPLOYEE CREDIT.— tion 45J of the Internal Revenue Code of 1986 qualified active duty. (1) IN GENERAL.—Paragraph (1) of section (as added by this section) is an effective in- ‘‘(c) LIMITATIONS.—No credit shall be al- 51(d) of the Internal Revenue Code of 1986 (re- centive for the hiring and retention of em- lowed with respect to any day that a Ready lating to members of targeted groups) is ployees who are individuals described in sub- Reserve-National Guard employee who per- amended by striking ‘‘or’’ at the end of sub- paragraph (A) and whether there exists any forms qualified active duty was not sched- paragraph (G), by striking the period at the compliance problems in the administration uled to work (for reason other than to par- end of subparagraph (H) and inserting ‘‘, or’’ of such credit. ticipate in qualified active duty). and by adding at the end the following new (2) REPORT.—The Comptroller General of ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For subparagraph: the United States shall report on the results purposes of this section— ‘‘(I) a qualified replacement employee.’’. of the study required under paragraph (1) to ‘‘(1) ELIGIBLE TAXPAYER.— (2) QUALIFIED REPLACEMENT EMPLOYEE.— the Committee of Finance of the Senate and ‘‘(A) IN GENERAL.—The term ‘eligible tax- Section 51(d) of the Internal Revenue Code of the Committee on Ways and Means of the payer’ means a small business employer. 1986 is amended by redesignating paragraphs House of Representatives before July 1, 2005.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00047 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S154 CONGRESSIONAL RECORD — SENATE January 24, 2005 SEC. 2106. NONREDUCTION IN PAY WHILE FED- same respective meanings as given them in ‘‘(1) TRICARE Prime. ERAL EMPLOYEE IS PERFORMING section 4303 of title 38; ‘‘(2) TRICARE Standard. ACTIVE SERVICE IN THE UNI- ‘‘(2) the term ‘employing agency’, as used ‘‘(b) TYPES OF COVERAGE.—(1) A member el- FORMED SERVICES OR NATIONAL with respect to an employee entitled to any igible under subsection (a) may enroll for ei- GUARD. payments under this section, means the ther of the following types of coverage: (a) PRESERVATION OF PAY LEVEL.— agency or other entity of the Government ‘‘(A) Self alone coverage. (1) REQUIREMENTS.—Subchapter IV of chap- (including an agency referred to in section ‘‘(B) Self and family coverage. ter 55 of title 5, United States Code, is 2302(a)(2)(C)(ii)) with respect to which such ‘‘(2) An enrollment by a member for self amended by adding at the end the following: employee has reemployment rights under and family covers the member and the de- ‘‘§ 5538. Nonreduction in pay while serving in chapter 43 of title 38; and pendents of the member who are described in the uniformed services or National Guard ‘‘(3) the term ‘basic pay’ includes any subparagraph (A), (D), or (I) of section 1072(2) ‘‘(a) An employee who is absent from a po- amount payable under section 5304.’’. of this title. sition of employment with the Federal Gov- (2) CLERICAL AMENDMENT.—The table of ‘‘(c) OPEN ENROLLMENT PERIODS.—The Sec- ernment in order to perform active duty in sections for chapter 55 of title 5, United retary of Defense shall provide for at least the uniformed services pursuant to a call or States Code, is amended by inserting after one open enrollment period each year. Dur- order to active duty under a provision of law the item relating to section 5537 the fol- ing an open enrollment period, a member eli- referred to in section 101(a)(13)(B) of title 10 lowing: gible under subsection (a) may enroll in the shall be entitled, while serving on active ‘‘5538. Nonreduction in pay while serving in TRICARE program or change or terminate duty, to receive, for each pay period de- the uniformed services or Na- an enrollment in the TRICARE program. ‘‘(d) SCOPE OF CARE.—(1) A member and the scribed in subsection (b), an amount equal to tional Guard.’’. dependents of a member enrolled in the the amount by which— (b) EFFECTIVE DATE.— ‘‘(1) the amount of basic pay which would TRICARE program under this section shall (1) IN GENERAL.—Section 5538 of title 5, be entitled to the same benefits under this otherwise have been payable to such em- United States Code (as added by subsection ployee for such pay period if such employee’s chapter as a member of the uniformed serv- (a)), shall apply with respect to pay periods ices on active duty or a dependent of such a civilian employment with the Government (as described in subsection (b) of such sec- had not been interrupted by that service, ex- member, respectively. tion) beginning on or after the date of the ‘‘(2) Section 1074(c) of this title shall apply ceeds (if at all) enactment of this Act. with respect to a member enrolled in the ‘‘(2) the amount of pay and allowances (2) CONDITIONAL RETROACTIVE APPLICA- TRICARE program under this section. which (as determined under subsection (d))— TION.— ‘‘(e) PREMIUMS.—(1) The Secretary of De- ‘‘(A) is payable to such employee for that (A) Section 5538 of title 5, United States fense shall charge premiums for coverage service; and Code (as added by subsection (a)), shall apply pursuant to enrollments under this section. ‘‘(B) is allocable to such pay period. with respect to pay periods (as described in The Secretary shall prescribe for each of the ‘‘(b)(1) Amounts under this section shall be subsection (b) of such section) beginning on TRICARE program options referred to in payable with respect to each pay period or after October 11, 2002 through the date of subsection (a) a premium for self alone cov- (which would otherwise apply if the employ- the enactment of this Act, subject to the erage and a premium for self and family cov- ee’s civilian employment had not been inter- availability of appropriations. erage. rupted)— (B) There are authorized to be appropriated ‘‘(2) The monthly amount of the premium ‘‘(A) during which such employee is enti- $100,000,000 for purposes of subparagraph (A). in effect for a month for a type of coverage tled to reemployment rights under chapter TITLE XXII—NATIONAL GUARD AND RE- under this section shall be the amount equal 43 of title 38 with respect to the position SERVE COMPREHENSIVE HEALTH BENE- to 28 percent of the total amount determined from which such employee is absent (as re- FITS by the Secretary on an appropriate actuarial ferred to in subsection (a)); and basis as being reasonable for the coverage. ‘‘(B) for which such employee does not oth- SEC. 2201. SHORT TITLE. This title may be cited as the ‘‘National ‘‘(3) The premiums payable by a member erwise receive basic pay (including by taking Guard and Reserve Comprehensive Health under this subsection may be deducted and any annual, military, or other paid leave) to Benefits Act of 2005’’. withheld from basic pay payable to the mem- which such employee is entitled by virtue of ber under section 204 of title 37 or from com- SEC. 2202. FINDINGS. such employee’s civilian employment with pensation payable to the member under sec- Congress makes the following findings: the Government. tion 206 of such title. The Secretary shall (1) According to the results of a Depart- ‘‘(2) For purposes of this section, the period prescribe the requirements and procedures ment of Defense survey conducted in 2000, 20 during which an employee is entitled to re- applicable to the payment of premiums by percent of members of the reserve compo- employment rights under chapter 43 of title members not entitled to such basic pay or nents of the Armed Forces, including 40 per- 38— compensation. ‘‘(A) shall be determined disregarding the cent of junior enlisted personnel, had no ‘‘(4) Amounts collected as premiums under provisions of section 4312(d) of title 38; and health care coverage while not on active this subsection shall be credited to the ap- ‘‘(B) shall include any period of time speci- duty. propriation available for the Defense Health fied in section 4312(e) of title 38 within which (2) In 2004, Congress passed legislation au- Program Account under section 1100 of this an employee may report or apply for employ- thorizing reservists to obtain access to the title, shall be merged with sums in such Ac- ment or reemployment following completion military TRICARE health care program for count that are available for the fiscal year in of service on active duty to which called or one year for each 90-day period of active which collected, and shall be available under ordered as described in subsection (a). duty service. While the enactment of this subsection (b) of such section for such fiscal ‘‘(c) Any amount payable under this sec- law was an important step forward, the law year. tion to an employee shall be paid— only provides eligibility for health care after ‘‘(f) OTHER CHARGES.—A person who re- ‘‘(1) by such employee’s employing agency; active duty has been completed and fails to ceives health care pursuant to an enrollment ‘‘(2) from the appropriation or fund which provide the complete health care coverage in a TRICARE program option under this would be used to pay the employee if such necessary to ensure that reservists are medi- section, including a member who receives employee were in a pay status; and cally ready to answer a future call to active such health care, shall be subject to the ‘‘(3) to the extent practicable, at the same duty. same deductibles, copayments, and other time and in the same manner as would basic (3) In September 2004, the Government Ac- nonpremium charges for health care as apply pay if such employee’s civilian employment countability Office, after reviewing pre-de- under this chapter for health care provided had not been interrupted. ployment health screenings of over 240,000 under the same TRICARE program option to ‘‘(d) The Office of Personnel Management reservists, reported finding that nearly 7 per- dependents described in subparagraph (A), shall, in consultation with Secretary of De- cent of activated reservists were categorized (D), or (I) of section 1072(2) of this title. fense, prescribe any regulations necessary to as nondeployable for health reasons, includ- ‘‘(g) TERMINATION OF ENROLLMENT.—(1) A carry out the preceding provisions of this ing nearly 10 percent of the Army Reserve. member enrolled in the TRICARE program section. SEC. 2203. TRICARE COVERAGE FOR MEMBERS under this section may terminate the enroll- ‘‘(e)(1) The head of each agency referred to OF THE READY RESERVE. ment only during an open enrollment period in section 2302(a)(2)(C)(ii) shall, in consulta- (a) ELIGIBILITY.—Section 1076b of title 10, provided under subsection (c), except as pro- tion with the Office, prescribe procedures to United States Code, is amended to read as vided in subsection (h)(2). ensure that the rights under this section follows: ‘‘(2) An enrollment of a member for self apply to the employees of such agency. ‘‘§ 1076b. TRICARE program: coverage for alone or for self and family under this sec- ‘‘(2) The Administrator of the Federal members of the Ready Reserve tion shall terminate on the first day of the Aviation Administration shall, in consulta- ‘‘(a) ELIGIBILITY.—Members of the Selected first month beginning after the date on tion with the Office, prescribe procedures to Reserve of the Ready Reserve of a reserve which the member ceases to be eligible under ensure that the rights under this section component of the armed forces and members subsection (a). apply to the employees of that agency. of the Individual Ready Reserve described in ‘‘(3) The enrollment of a member under ‘‘(f) For purposes of this section— subsection 10144(b) of this title are eligible, this section may be terminated on the basis ‘‘(1) the terms ‘employee’, ‘Federal Govern- subject to subsection (h)(1), to enroll in the of failure to pay the premium charged the ment’, and ‘uniformed services’ have the following TRICARE program options: member under this section.

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‘‘(h) RELATIONSHIP TO TRANSITION ed by the member in accordance with regula- ocation, the member’s dependents shall be- TRICARE COVERAGE UPON SEPARATION FROM tions prescribed under subsection (j). come eligible for benefits under the ACTIVE DUTY.—(1) A member may not enroll ‘‘(b) ELIGIBLE MEMBER.—A member of a re- TRICARE program as provided for under this in the TRICARE program under this section serve component is eligible for payment of chapter. while entitled to transitional health care the applicable premium for continuation of ‘‘(j) REGULATIONS.—The Secretary of De- under subsection (a) of section 1145 of this qualified health benefits plan coverage under fense shall prescribe regulations for carrying title or while authorized to receive health subsection (a) while serving on active duty out this section. The regulations shall in- care under subsection (c) of such section. pursuant to a call or order issued under a clude such requirements for making an elec- ‘‘(2) A member who enrolls in the provision of law referred to in section tion of payment of applicable premiums as TRICARE program under this section within 101(a)(13)(B) of this title during a war or na- the Secretary considers appropriate.’’. 90 days after the date of the termination of tional emergency declared by the President (2) CLERICAL AMENDMENT.—The table of the member’s entitlement or eligibility to or Congress. sections at the beginning of such chapter is receive health care under subsection (a) or ‘‘(c) QUALIFIED HEALTH BENEFITS PLAN amended by inserting after the item relating (c) of section 1145 of this title may terminate COVERAGE.—For the purposes of this section, to section 1078a the following new item: the enrollment at any time within one year health benefits plan coverage for a member ‘‘1078b. Continuation of non-TRICARE health after the date of the enrollment. called or ordered to active duty is qualified benefits plan coverage for cer- ‘‘(i) REGULATIONS.—The Secretary of De- health benefits plan coverage if— tain Reserves called or ordered fense, in consultation with the other admin- ‘‘(1) the coverage was in force on the date to active duty and their de- istering Secretaries, shall prescribe regula- on which the Secretary notified the member pendents.’’. tions for the administration of this sec- that issuance of the call or order was pend- (b) APPLICABILITY.—Section 1078b of title tion.’’. ing or, if no such notification was provided, 10, United States Code (as added by sub- (b) DEFINITIONS.— the date of the call or order; section (a)), shall apply with respect to calls (1) TRICARE OPTIONS.—Section 1072 of title ‘‘(2) on such date, the coverage applied to or orders of members of reserve components 10, United States Code, is amended by adding the member and dependents of the member of the Armed Forces to active duty as de- at the end the following new paragraphs: described in subparagraph (A), (D), or (I) of scribed in subsection (b) of such section, that ‘‘(10) The term ‘TRICARE Prime’ means section 1072(2) of this title; and are issued by the Secretary of a military de- the managed care option of the TRICARE ‘‘(3) the coverage has not lapsed. partment on or after the date of the enact- program. ‘‘(d) APPLICABLE PREMIUM.—The applicable ment of this Act. ‘‘(11) The term ‘TRICARE Standard’ means premium payable under this section for con- the Civilian Health and Medical Program of tinuation of health benefits plan coverage in TITLE XXIII—IMPROVED DEATH GRA- the Uniformed Services option under the the case of a member is the amount of the TUITY AND OTHER SURVIVOR BENEFITS TRICARE program.’’. premium payable by the member for the cov- SEC. 2301. FINDINGS. (2) CONFORMING AMENDMENTS.— erage of the member and dependents. Congress makes the following findings: ‘‘(e) MAXIMUM AMOUNT.—The total amount (A) Section 1076d(f) of such title is amend- (1) No amount of money can make up for that may be paid for the applicable premium ed— the loss of a loved one. But the United States of a health benefits plan for a member under (i) by striking ‘‘(f) DEFINITIONS.—’’ and all can, and is obliged to, honor the service of this section in a fiscal year may not exceed that follows through ‘‘(1) The’’ and inserting lost servicemembers by ensuring that their the amount determined by multiplying— ‘‘(f) IMMEDIATE FAMILY DEFINED.—In this sec- families are financially supported at the ‘‘(1) the sum of one plus the number of the tion, the’’; and time of great need occasioned by those member’s dependents covered by the health (ii) by striking paragraph (2). losses. benefits plan, by (B) Section 1097a(f) of such title is amend- (2) The Federal Government owes families ‘‘(2) the per capita cost of providing ed by striking ‘‘DEFINITIONS.—In this sec- of servicemembers dying on duty a death TRICARE coverage and benefits for depend- tion:’’ and all that follows through ‘‘(2) The gratuity that is sufficient to help each fam- ents under this chapter for such fiscal year, term’’ and inserting ‘‘CATCHMENT AREA DE- ily pay for costs associated with the death of as determined by the Secretary of Defense. FINED.—In this section, the term’’. the servicemember and to help the members ‘‘(f) BENEFITS COVERAGE CONTINUATION PE- (c) PERIOD FOR IMPLEMENTATION.—Section of the family adjust to the financial insta- RIOD.—The benefits coverage continuation 1076b of title 10, United States Code (as added bility that results from termination of the period under this section for qualified health by subsection (a)), shall apply with respect servicemember’s income. benefits plan coverage in the case of a mem- to months that begin on or after the date (3) Survivors of fallen military personnel ber called or ordered to active duty is the pe- that is 180 days after the date of the enact- who are eligible for both a Survivor Benefit riod that— ment of this Act. Plan annuity and Dependency and Indemnity ‘‘(1) begins on the date of the call or order; (d) COORDINATION WITH OVERLAPPING AU- Compensation suffer a loss of income as a re- and THORITY.— sult of the law that requires a reduction in ‘‘(2) ends on the earlier of the date on (1) REPEAL.—Effective one year after the the Survivor Benefit Plan annuity by the which— date of the enactment of this Act— amount of the Dependency and Indemnity ‘‘(A) the member’s eligibility for transi- (A) section 1076d of title 10, United States Compensation. This unjust prohibition tional health care under section 1145(a) of Code, is repealed; and against concurrent receipt of two inde- this title terminates under paragraph (3) of (B) the table of sections at the beginning of pendent benefits prevents the United States such section; or chapter 55 of such title is amended by strik- from fulfilling its obligation to the survivors ‘‘(B) the member elects to terminate the ing the item relating to section 1076d. during the time of financial need that is oc- continued qualified health benefits plan cov- (2) TRANSITION COVERAGE.—The Secretary casioned by the deaths of the fallen erage of the dependents of the member. of Defense shall provide for an orderly tran- servicemembers. ‘‘(g) EXTENSION OF PERIOD OF COBRA COV- sition to TRICARE coverage under section ERAGE.—Notwithstanding any other provi- SEC. 2302. INCREASED AMOUNT OF DEATH GRA- 1076b of title 10, United States Code (as sion of law— TUITY. amended by subsection (a)), for persons en- ‘‘(1) any period of coverage under a COBRA (a) AMOUNT OF DEATH GRATUITY.—Section rolled for TRICARE coverage under section continuation provision (as defined in section 1478(a) of title 10, United States Code, is 1076d of such title before the repeal of such 9832(d)(1) of the Internal Revenue Code of amended by striking ‘‘$12,000’’ in the first section takes effect under paragraph (1)(A). 1986) for a member under this section shall sentence and inserting ‘‘$100,000’’. SEC. 2204. ALLOWANCE FOR CONTINUATION OF be deemed to be equal to the benefits cov- (b) EFFECTIVE DATE.—The amendment NON-TRICARE HEALTH BENEFITS erage continuation period for such member made by subsection (a) shall take effect as of COVERAGE FOR CERTAIN MOBI- September 11, 2001, and shall apply with re- LIZED RESERVES. under this section; and ‘‘(2) with respect to the election of any pe- spect to deaths occurring on or after that (a) PAYMENT OF PREMIUMS.— date. (1) REQUIREMENT TO PAY PREMIUMS.—Chap- riod of coverage under a COBRA continu- ation provision (as so defined), rules similar SEC. 2303. DEATH GRATUITY EXCLUDABLE FROM ter 55 of title 10, United States Code, is FEDERAL INCOME TAXATION. amended by inserting after section 1078a the to the rules under section 4980B(f)(5)(C) of (a) IN GENERAL.—Paragraph (1) of section following new section: such Code shall apply. ‘‘(h) NONDUPLICATION OF BENEFITS.—A de- 134(b) of the Internal Revenue Code of 1986 ‘‘§ 1078b. Continuation of non-TRICARE pendent of a member who is eligible for bene- (relating to certain military benefits) is health benefits plan coverage for certain fits under qualified health benefits plan cov- amended by adding at the end the following Reserves called or ordered to active duty erage paid on behalf of a member by the Sec- new flush sentence: and their dependents retary concerned under this section is not el- ‘‘Such term shall include any death gratuity ‘‘(a) PAYMENT OF PREMIUMS.—The Sec- igible for benefits under the TRICARE pro- to which the limitation in section 1478(a) of retary concerned shall pay the applicable gram during a period of the coverage for title 10, United States Code, applies.’’. premium to continue in force any qualified which so paid. (b) EFFECTIVE DATE.—The amendment health benefits plan coverage for an eligible ‘‘(i) REVOCABILITY OF ELECTION.—A member made by subsection (a) shall apply to reserve component member for the benefits who makes an election under subsection (a) amounts paid with respect to deaths occur- coverage continuation period if timely elect- may revoke the election. Upon such a rev- ring on or after September 11, 2001.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00049 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S156 CONGRESSIONAL RECORD — SENATE January 24, 2005 SEC. 2304. REPEAL OF REQUIREMENT OF REDUC- Iraq has resulted in a commitment of United mines that the applicability of the limita- TION OF SBP SURVIVOR ANNUITIES States resources to reconstruction that oth- tion to such obligation or expenditure would BY DEPENDENCY AND INDEMNITY erwise would be available for supporting the adversely affect the physical safety of United COMPENSATION. efforts of United States military personnel States Armed Forces personnel operating in (a) REPEAL.—Subchapter II of chapter 73 of to rid Iraq and Afghanistan of hostile insur- Iraq, except that any such waiver shall not title 10, United States Code is amended— gents. take effect before the President submits a (1) in section 1450(c)(1), by inserting after (4) Iraq possesses the world’s second larg- written notification of the waiver and deter- ‘‘to whom section 1448 of this title applies’’ est reserve of crude oil, with 112,000,000,000 mination to the chairmen and ranking mem- the following: ‘‘(except in the case of a death barrels, and administration officials have bers of the appropriate committees of Con- as described in subsection (d) or (f) of such stated on several occasions that revenue gress. section)’’; and from Iraq’s oil industry could fund a signifi- SEC. 3104. APPROPRIATE COMMITTEES OF CON- (2) in section 1451(c)— cant portion of the costs of the reconstruc- GRESS DEFINED. (A) by striking paragraph (2); and tion of Iraq. In this title, the term ‘‘appropriate com- (B) by redesignating paragraphs (3) and (4) mittees of Congress’’ mean the following as paragraphs (2) and (3), respectively. SEC. 3102. REPORT ON ADDITIONAL NEEDS FOR FUNDING MILITARY AND RECON- committees: (b) PROHIBITION ON RETROACTIVE BENE- STRUCTION EFFORTS. (1) The Committee on Foreign Relations FITS.—No benefits may be paid to any person (a) REQUIREMENT FOR REPORT.—Whenever Committee, the Committee on Armed Serv- for any period before the effective date pro- the President submits to Congress a request ices, and the Committee on Appropriations vided under subsection (e) by reason of the for a supplemental appropriation of funds for of the Senate. amendments made by subsection (a). use in connection with United States mili- (2) The Committee on International Rela- (c) PROHIBITION ON RECOUPMENT OF CERTAIN tary or reconstruction efforts in Iraq, the tions, the Committee on Armed Services, AMOUNTS PREVIOUSLY REFUNDED TO SBP RE- President shall submit to the chairmen and and the Committee on Appropriations of the CIPIENTS.—A surviving spouse who is or has ranking members of the appropriate commit- House of Representatives. been in receipt of an annuity under the Sur- tees of Congress in accordance with this sec- vivor Benefit Plan under subchapter II of tion a report on the status of United States By Mr. BIDEN (for himself, Mr. chapter 73 of title 10, United States Code, financial commitments to the reconstruc- REID, Mr. BINGAMAN, Ms. MI- that is in effect before the effective date pro- tion of Iraq. KULSKI, Mr. DURBIN, Ms. vided under subsection (e) and that is ad- (b) CONTENT.—The report under subsection justed by reason of the amendments made by STABENOW, Mr. ROCKEFELLER, (a) shall include the following information: subsection (a) and who has received a refund Mr. LAUTENBERG, and Mr. SCHU- (1) An estimate of the amount of the of retired pay under section 1450(e) of title MER): United States Government funds spent for 10, United States Code, shall not be required S. 12. A bill to combat international the reconstruction of Iraq between March 19, to repay such refund to the United States. terrorism, and for other purposes; to 2003, and the date of the report that is attrib- (d) RECONSIDERATION OF OPTIONAL ANNU- utable to tax revenue collected from United the Committee on Foreign Relations. ITY.—Section 1448(d)(2) of title 10, United States taxpayers. Mr. BIDEN. Mr. President, I am States Code, is amended by adding at the end (2) An assessment of the activities funded pleased to join the Democratic Leader the following new sentences: ‘‘The surviving by that amount, together with a discussion in introducing S. 12, a bill to combat spouse, however, may elect to terminate an of the results that such activities have international terrorism. annuity under this subparagraph in accord- achieved. ance with regulations prescribed by the Sec- We all know that the primary secu- (3) An estimate of the amount of the funds retary concerned. Upon such an election, rity threat facing America is from ter- that have been contributed by all other for- payment of an annuity to dependent children rorists motivated by a radical Islamic eign governments for the reconstruction of under this subparagraph shall terminate ef- fundamentalism. Since the 9/11 at- Iraq and in relief of Iraq’s national debt. fective on the first day of the first month (4) The amount of the crude oil that has tacks, we have done much to confront that begins after the date on which the Sec- been extracted by Iraq since March 19, 2003, this threat, but we must do much retary concerned receives notice of the elec- and the total value of that oil in United more. As the 9/11 Commission reported, tion, and, beginning on that day, an annuity States dollars. we are safer, but we are not yet safe. I shall be paid to the surviving spouse under (c) TIME FOR REPORT.—The President shall paragraph (1) instead.’’. know that all Senators are committed submit the report under this section not (e) EFFECTIVE DATE.—The amendments to the objective of making our country later than 24 hours after any proposed legis- made by this section shall take effect on the safer. lation to provide a supplemental appropria- later of— We must understand that those who tion of funds requested by the President for (1) the first day of the first month that be- would spread radical Islamic fun- use in connection with United States mili- gins after the date of the enactment of this tary or reconstruction activities in Iraq is damentalism and weapons of mass de- Act; or introduced in either the Senate or the House struction are beyond the reach of rea- (2) the first day of the fiscal year that be- of Representatives. son. We must—and we will—defeat gins in the calendar year in which this Act is (d) FORM.—The report under this section them. But hundreds of millions of enacted. shall be submitted in unclassified form. hearts and minds around the world are SEC. 2305. EFFECTIVE DATE FOR PAID-UP COV- ERAGE UNDER SURVIVOR BENEFIT SEC. 3103. LIMITATION ON USE OF FUNDS. open to American ideas and ideals. We PLAN. (a) LIMITATION.—Funds appropriated or must reach them. Section 1452(j) of title 10, United States otherwise available for providing financial This bill contains a range of pro- Code, is amended by striking ‘‘October 1, assistance for reconstruction activities in posals that are designed to strengthen 2008’’ and inserting ‘‘October 1, 2005’’. Iraq may not be obligated or expended for our anti-terrorism efforts in a broad providing financial assistance for such ac- DIVISION C—TAXPAYER PROTECTION range of areas. It will strengthen our tivities other than in the form of a TITLE XXXI—FUNDING OF collateralized loan until the President sub- military by expanding our special RECONSTRUCTION IN IRAQ mits to the chairmen and ranking members forces. It will strengthen our intel- SEC. 3101. FINDINGS. of the appropriate committees of Congress a ligence operations by increasing the Congress makes the following findings: report that contains the following matters: cadre of the trained linguists in the (1) The international community’s support (1) The President’s plan for seeking in- government. It will strengthen our for Iraq’s efforts to reconstruct the infra- creased financial support for reconstruction public diplomacy by increasing funds structure of Iraq following the overthrow of activities in Iraq from the international for State Department programs, inter- Saddam Hussein’s regime is critical to the community. national exchanges, and international achievement of regional and international (2) The President’s statement that he has stability and to the protection of national determined that— broadcasting. It will strengthen our ef- security interests of the United States. (A) Iraq is incapable of producing suffi- fort to expand basic educational oppor- (2) United States taxpayers have borne a cient revenues from its oil industry to pay tunities in the Muslim world and com- disproportionate burden in supporting the for future reconstruction activities; and bat radical madrassas. It will strength- reconstruction of Iraq. The United States (B) it is not in the national security inter- en our assistance to non-governmental Government has committed to providing ests of the United States for the United organizations working to build demo- Iraq with grants of financial assistance States to provide financial assistance for re- cratic institutions. It will strengthen worth more than 500 percent more than the construction activities in Iraq solely in the our programs to help Russia account grant assistance that has been committed by form of loans. the governments of all of the rest of the (b) WAIVER AUTHORITY.—The President for, secure and destroy dangerous nu- countries of the world combined. may waive the applicability of the limita- clear materials. And it will strengthen (3) The disproportionate contribution of tion in subsection (a) to an obligation or ex- our law enforcement by increasing sup- the United States to the reconstruction of penditure of funds if the President deter- port for cops on the beat—the people

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00050 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S157 who labor on the front lines of home- contained several criticisms of the lack of necessary for each of fiscal years 2006, 2007, land security. linguistic expertise in the Central Intel- and 2008 in order to carry out the demonstra- I cannot take credit for every pro- ligence Agency and the Federal Bureau of In- tion program established under subsection posal in this bill. Many of them are vestigation prior to the September 11, 2001 (c). terrorist attacks, and called for the Central SEC. 103. CURTAILING TERRORIST FINANCING. ideas contributed by my Democratic Intelligence Agency to ‘‘develop a stronger colleagues. The Democratic Leader has (a) FINDINGS.—Congress makes the fol- language program, with high standards and lowing findings: graciously allowed me to be the lead sufficient financial incentives’’. (1) The report of the National Commission sponsor of the bill, for which I am (5) An audit conducted by the Department on Terrorist Attacks Upon the United States grateful. I look forward to working of Justice in July 2004, revealed that the stated that ‘‘[v]igorous efforts to track ter- with all my colleagues to strengthen Federal Bureau of Investigation has a back- rorist financing must remain front and cen- America’s defenses against the threat log of hundreds of thousands of untranslated ter in United States counterterrorism ef- of terrorism—through this and other audio recordings from terror and espionage forts’’. investigations. (2) The report of the Independent Task legislation—in the coming Congress. (6) The National Security Education Pro- Mr. President, I ask unanimous con- Force sponsored by the Council on Foreign gram Trust Fund, which funds critical grant Relations stated that ‘‘currently existing U. sent that the text of the bill be printed and scholarship programs for linguistic S. and international policies, programs, in the RECORD. training in regions critical to national secu- structures, and organizations will be inad- There being no objection, the bill was rity, will have exhausted all its funding by equate to assure sustained results commen- ordered to be printed in the RECORD, as fiscal year 2006, unless additional appropria- surate with the ongoing threat posed to the follows: tions are made to the Trust Fund. national security of the United States’’. (b) SENSE OF CONGRESS.—It is the sense of S. 12 (3) The report of the Independent Task Congress that— Force contained the conclusion that ‘‘[l]ong- Be it enacted by the Senate and House of Rep- (1) the overwhelming majority of Muslims term success will depend critically upon the resentatives of the United States of America in reject terrorism and a small, radical minor- structure, integration, and focus of the U. S. Congress assembled, ity has grossly distorted the teachings of one Government—and any intergovernmental ef- of the world’s great faiths to seek justifica- SECTION 1. SHORT TITLE. forts undertaken to address this problem’’. tion for acts of terrorism, such radical Is- This Act may be cited as the ‘‘Targeting (b) POLICY.—It is the policy of the United lamic fundamentalism constitutes a primary Terrorists More Effectively Act of 2005’’. States— threat to the national security interests of TITLE I—EFFECTIVELY TARGETING (1) to work with the Government of Saudi the United States, and an effective strategy TERRORISTS Arabia to curtail terrorist financing origi- for combating terrorism should include in- nating from that country using a range of SEC. 101. INCREASED STRENGTH OF ARMY SPE- creasing the number of personnel throughout CIAL OPERATIONS FORCES. methods, including diplomacy, intelligence, the Federal Government with expertise in and law enforcement; (a) SENSE OF CONGRESS.—It is the sense of languages spoken in predominately Muslim (2) to ensure effective coordination and Congress that the number of the active-duty countries and in the culture of such coun- sufficient resources for efforts of the agen- Army personnel comprising the Army Spe- tries; cies and departments of the United States to cial Forces Command as of the last day of a (2) Muslim-Americans constitute an inte- disrupt terrorist financing by carrying out, fiscal year should be increased as follows: gral and cherished part of the fabric of through the Office of Terrorism and Finan- (1) To 4,644, as of September 30, 2006. American society and possess many talents, cial Intelligence in the Department of the (2) To 5,144, as of September 30, 2007. including linguistic, historic, and cultural (3) To 5,644, as of September 30, 2008. Treasury, a comprehensive analysis of the expertise that should be harnessed in the war (4) To 6,144, as of September 30, 2009. budgets and activities of all such agencies against radical, fundamentalist terror; and (b) INCREASED ACTIVE FORCES END and departments that are related to dis- (3) amounts appropriated for the National STRENGTHS TO EFFECTUATE POLICY ON IN- rupting the financing of terrorist organiza- Flagship Language Initiative pursuant to CREASE IN STRENGTH OF ARMY SPECIAL tions; the amendments made by subsection (e)(2) FORCES.— (3) to provide each agency or department of should be used to support the establishment, (1) FISCAL YEAR 2006.—Effective on October the United States with the appropriate num- operation, and improvement of programs for 1, 2005, section 691(b)(1) of title 10, United ber of personnel to carry out the activities of the study of Arabic, Persian, and other Mid- States Code, is amended by striking such agency or department related to dis- dle Eastern, South Asian, Southeast Asian, ‘‘502,400’’ and inserting ‘‘502,900’’. rupting the financing of terrorist organiza- and West African languages in institutes of (2) FISCAL YEAR 2007.—Effective on October tions; higher education in the United States. 1, 2006, section 691(b)(1) of such title is (4) to centralize the coordination of the ef- (c) AUTHORIZATION OF APPROPRIATIONS.— amended by striking ‘‘502,900’’ and inserting (1) NATIONAL SECURITY EDUCATION TRUST forts of the United States to combat ter- ‘‘503,400’’. FUND.—Section 810 of the David L. Boren Na- rorist financing and utilize existing authori- (3) FISCAL YEAR 2008.—Effective on October tional Security Education Act of 1991 (50 ties to identify foreign jurisdictions and for- 1, 2007, section 691(b)(1) of such title is U.S.C. 1910) is amended by adding at the end eign financial institutions suspected of abet- amended by striking ‘‘503,400’’ and inserting the following: ting terrorist financing and take actions to ‘‘503,900’’. ‘‘(d) AUTHORIZATION OF APPROPRIATIONS prevent the provision of assistance to terror- (4) FISCAL YEAR 2009.—Effective on October FOR THE FUND FOR FISCAL YEAR 2006.— ists; and 1, 2008, section 691(b)(1) of such title is ‘‘(1) IN GENERAL.—There are authorized to (5) to work with other countries to develop amended by striking ‘‘503,900’’ and inserting be appropriated to the Fund $150,000,000 for and enforce strong domestic terrorist financ- ‘‘504,400’’. fiscal year 2006. ing laws, and increase funding for bilateral SEC. 102. FOREIGN LANGUAGE EXPERTISE. ‘‘(2) AVAILABILITY OF FUNDS.—Amounts ap- and multilateral programs to enhance train- (a) FINDINGS.—Congress makes the fol- propriated pursuant to the authorization of ing and capacity-building in countries who lowing findings: appropriations in paragraph (1) shall remain request assistance. (1) Success in the global war on terrorism available until expended and not more than (c) AUTHORIZATION OF APPROPRIATIONS TO will require a dramatic increase in institu- $15,000,000 of such amounts may be obligated PROVIDE TECHNICAL ASSISTANCE TO PREVENT tional and personal expertise in the lan- and expended during any fiscal year.’’. FINANCING OF TERRORISTS.— guages and cultures of the societies where (2) NATIONAL FLAGSHIP LANGUAGE INITIA- (1) IN GENERAL.—There are authorized to be terrorism has taken root, including a sub- TIVE.— appropriated to the President for the ‘‘Eco- stantial increase in the number of national (A) IN GENERAL.—Section 811(a) of the nomic Support Fund’’ to provide technical security personnel who obtain expert lingual David L. Boren National Security Education assistance under the provisions of chapter 4 training. Act of 1991 (50 U.S.C. 1911(a)) is amended by of part II of the Foreign Assistance Act of (2) The National Commission on Terrorist striking ‘‘there is authorized to be appro- 1961 (22 U.S.C. 2346 et seq.) to foreign coun- Attacks Upon the United States identified priated to the Secretary for each fiscal year, tries to assist such countries in preventing the countries in the Middle East, South Asia, beginning with fiscal year 2003, $10,000,000’’ the financing of terrorist activities— Southeast Asia, and West Africa as countries and inserting ‘‘there is authorized to be ap- (A) for fiscal year 2006, $300,000,000; and that serve or could serve as terrorist havens. propriated to the Secretary for each fiscal (B) for fiscal years 2007 and 2008, such sums (3) Although 22 countries have Arabic as year 2003 through 2005, $10,000,000, and for as may be necessary. their official language, the National Com- each fiscal year after 2005, $20,000,000,’’. (2) AVAILABILITY OF FUNDS.—Amounts ap- mission on Terrorist Attacks Upon the (B) AVAILABILITY OF FUNDS.—Section 811(b) propriated pursuant to the authorization of United States found that a total of only 6 un- of such Act (50 U.S.C. 1911(b)) is amended by appropriations in this subsection are author- dergraduate degrees for the study of Arabic inserting ‘‘for fiscal years 2003 through 2005’’ ized to remain available until expended. were granted by United States colleges and after ‘‘this section’’. (3) ADDITIONAL FUNDS.—Amounts author- universities in 2002. (3) DEMONSTRATION PROGRAM.—There are ized to be appropriated under this subsection (4) The report of the National Commission authorized to be appropriated to the Director are in addition to amounts otherwise avail- on Terrorist Attacks Upon the United States of National Intelligence such sums as may be able for such purposes.

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PROHIBITION ON TRANSACTIONS WITH stated that ‘‘[e]ducation that teaches toler- the President for ‘‘Development Assistance’’ COUNTRIES THAT SUPPORT TER- ance, the dignity and value of each indi- for international education programs carried RORISM. vidual, and respect for different beliefs is a out under sections 105 and 496 of the Foreign (a) CLARIFICATION OF CERTAIN ACTIONS key element in any global strategy to elimi- Assistance Act of 1961 (22 U.S.C. 2151c and UNDER IEEPA.—In any case in which the nate Islamic terrorism’’. 2293)— President takes action under the Inter- (2) According to the United Nations Devel- (1) for fiscal year 2006, $1,000,000,000; and national Emergency Economic Powers Act opment Program Arab Human Development (2) for fiscal years 2007 and 2008, such sums (50 U.S.C. 1701 et seq.) with respect to a for- Report for 2002, 10,000,000 children between as may be necessary. eign country, or persons dealing with or as- the ages of 6 through 15 in the Arab world do (b) INTERNATIONAL YOUTH OPPORTUNITY sociated with the government of that foreign not attend school, and 2⁄3 of the 65,000,000 il- FUND.—There are authorized to be appro- country, as a result of a determination by literate adults in the Arab world are women. priated to the President for fiscal years 2006, the Secretary of State that the government (3) The report of the National Commission 2007, and 2008 such sums as may be necessary of that foreign country has repeatedly pro- on Terrorist Attacks Upon the United States for the United States contribution to the vided support for acts of international ter- concluded that ensuring educational oppor- International Youth Opportunity Fund au- rorism, such action shall apply to a United tunity is essential to the efforts of the thorized under section 7114 of the 9/11 Com- States person or other person. United States to defeat global terrorism and mission Implementation Act of 2004 (Public (b) DEFINITIONS.—In this section: recommended that the United States Gov- Law 108–458) for international education pro- (1) CONTROLLED IN FACT.—The term ‘‘is con- ernment ‘‘should offer to join with other na- grams. trolled in fact’’ includes— tions in generously supporting [spending (c) ADDITIONAL FUNDS.—Amounts author- (A) in the case of a corporation, holds at funds] . . . directly on building and operating ized to be appropriated in this section are in least 50 percent (by vote or value) of the cap- primary and secondary schools in those Mus- addition to amounts otherwise available for ital structure of the corporation; and (B) in the case of any other kind of legal lim states that commit to sensibly investing such purposes. entity, holds interests representing at least financial resources in public education’’. Subtitle B—Democracy and Development in (b) POLICY.—It is the policy of the United 50 percent of the capital structure of the en- the Muslim World States— tity. (1) to work toward the goal of dramatically SEC. 211. PROMOTING DEMOCRACY AND DEVEL- (2) STATE.—The term ‘‘State’’ means each OPMENT IN THE MIDDLE EAST, CEN- increasing the availability of basic education of the several States of the United States, TRAL ASIA, SOUTH ASIA, AND the District of Columbia, the Commonwealth in the developing world, which will reduce SOUTHEAST ASIA. the influence of radical madrassas and other of Puerto Rico, Guam, the Virgin Islands, (a) FINDINGS.—Congress makes the fol- and other territories or possessions of the institutions that promote religious extre- lowing findings: United States. mism; (1) Al-Qaeda and affiliated groups have es- (3) UNITED STATES PERSON.—The term (2) to join with other countries in gener- tablished a terrorist network with linkages ‘‘United States person’’ includes any United ously supporting the International Youth throughout the Middle East, Central Asia, States citizen, permanent resident alien, en- Opportunity Fund authorized under section South Asia, and Southeast Asia. tity organized under the law of the United 7114 of the 9/11 Commission Implementation (2) While political repression and lack of States or of any State (including foreign Act of 2004 (Public Law 108–458), with the economic development do not justify ter- branches), wherever located, or any other goal of building and operating primary and rorism, increased political freedoms and eco- person in the United States. secondary schools in Muslim countries that nomic growth can contribute to an environ- (c) APPLICABILITY.— commit to sensibly investing the resources ment that undercuts tendencies and condi- (1) IN GENERAL.—In any case in which the of such countries in public education; tions that facilitate the rise of terrorist or- President has taken action under the Inter- (3) to work with the international commu- ganizations. national Emergency Economic Powers Act nity, including foreign countries and inter- (3) It is in the national security interests and such action is in effect on the date of en- national organizations to raise $7,000,000,000 of the United States to promote democracy, actment of this Act, the provisions of sub- to $10,000,000,000 each year to fund education good governance, political freedom, inde- section (a) shall not apply to a United States programs in Muslim countries; pendent media, women’s rights, private sec- person (or other person) if such person di- (4) to offer additional incentives to coun- tor development, and open economic systems vests or terminates its business with the tries to increase the availability of basic in the countries of the Middle East, Central government or person identified by such ac- education; and Asia, South Asia, and Southeast Asia. (5) to work to prevent financing of edu- tion within 90 days after the date of enact- (b) POLICY.—It is the policy of the United ment of this Act. cational institutions that support radical Is- States— (2) ACTIONS AFTER DATE OF ENACTMENT.—In lamic fundamentalism. (1) to promote the objectives described in any case in which the President takes action (c) APPROPRIATE CONGRESSIONAL COMMIT- subsection (a)(3) in the countries of the Mid- under the International Emergency Eco- TEES DEFINED.—In this subtitle, the term dle East, Central Asia, South Asia, and nomic Powers Act on or after the date of en- ‘‘appropriate congressional committees’’ Southeast Asia; actment of this Act, the provisions of sub- means the Committee on Foreign Relations (2) to provide assistance and resources to section (a) shall not apply to a United States and the Committee on Appropriations of the organizations that are committed to pro- person (or other person) if such person di- Senate and the Committee on International moting such objectives; and vests or terminates its business with the Relations and the Committee on Appropria- (3) to work with other countries and inter- government or person identified by such ac- tions of the House of Representatives. national organizations to increase the re- tion within 90 days after the date of such ac- SEC. 202. ANNUAL REPORT TO CONGRESS. sources devoted to promoting such objec- tion. Not later than June 1 of each year, the tives. (d) NOTIFICATION OF CONGRESS OF TERMI- Secretary of State shall submit to the appro- (c) STRATEGY.—Not later than 180 days NATION OF INVESTIGATION BY OFFICE OF FOR- priate congressional committees a report on after the date of enactment of this Act, the EIGN ASSETS CONTROL.—The Office of Federal the efforts of countries in the developing Secretary of State shall submit to Congress Procurement Policy Act (41 U.S.C. 403 et world to increase the availability of basic a strategy to promote the policy of the seq.) is amended by adding at the end the fol- education and to close educational institu- United States set out in subsection (b). Such lowing new section: tions that promote religious extremism and strategy shall describe how funds appro- ‘‘SEC. 42. NOTIFICATION OF CONGRESS OF TER- terrorism. Each report shall include— priated pursuant to the authorization of ap- MINATION OF INVESTIGATION BY (1) a list of countries that are making seri- propriations in subsection (d) will be used. OFFICE OF FOREIGN ASSETS CON- ous and sustained efforts to increase the (d) AUTHORIZATION OF APPROPRIATIONS.— TROL. availability of basic education and to close ‘‘The Director of the Office of Foreign As- (1) IN GENERAL.—There are authorized to be educational institutions that promote reli- appropriated to the President for the ‘‘Eco- sets Control shall notify Congress upon the gious extremism and terrorism; termination of any investigation by the Of- nomic Support Fund’’ for activities carried (2) a list of countries that are making ef- out under chapter 4 of part II of the Foreign fice of Foreign Assets Control of the Depart- forts to increase the availability of basic ment of the Treasury if any sanction is im- Assistance Act of 1961 (22 U.S.C. 2346 et seq.) education and to close educational institu- to promote the policy of the United States posed by the Director of such office as a re- tions that promote religious extremism and sult of the investigation.’’. set out in subsection (b)— terrorism, but such efforts are not serious (A) for fiscal year 2006, $500,000,000; and TITLE II—PREVENTING THE GROWTH OF and sustained; and (B) for fiscal years 2007 and 2008, such sums RADICAL ISLAMIC FUNDAMENTALISM (3) a list of countries that are not making as may be necessary. Subtitle A—Quality Educational efforts to increase the availability of basic (2) SENSE OF CONGRESS ON USE OF FUNDS.— Opportunities education and to close educational institu- It is the sense of Congress that a substantial SEC. 201. FINDINGS, POLICY, AND DEFINITION. tions that promote religious extremism and portion of the funds appropriated pursuant (a) FINDINGS.—Congress makes the fol- terrorism. to the authorization of appropriations in lowing findings: SEC. 203. AUTHORIZATION OF APPROPRIATIONS. paragraph (1) should be made available to (1) The report of the National Commission (a) INTERNATIONAL EDUCATION PROGRAMS.— non-governmental organizations that have a on Terrorist Attacks Upon the United States There are authorized to be appropriated to record of success working in the countries of

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00052 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S159 the Middle East, Central Asia, South Asia, (1) make the Foundation an agency or es- (1) The United States needs to improve its and Southeast Asia to support democratic tablishment of the United States Govern- communication of information and ideas to parties, human rights organizations, inde- ment, or to make the officers or employees people in foreign countries, particularly in pendent media, and the efforts to promote of the Foundation officers or employees of countries with significant Muslim popu- the rights of women. the United States for purposes of title 5, lations. (3) ADDITIONAL FUNDS.—Amounts author- United States Code; or (2) Public diplomacy should reaffirm the ized to be appropriated in paragraph (1) are (2) to impose any restriction on the Foun- paramount commitment of the United States in addition to amounts otherwise available dation’s acceptance of funds from private to democratic principles, including pre- for such purposes. and public sources in support of its activities serving the civil liberties of all the people of the United States, including Muslim-Ameri- SEC. 212. MIDDLE EAST FOUNDATION. consistent with the purposes of this section. (e) LIMITATION ON PAYMENTS TO FOUNDA- cans. (a) PURPOSES.—The purposes of this section TION PERSONNEL.—No part of the funds pro- (3) The report of the National Commission are to support, through the provision of vided to the Foundation under this section on Terrorist Attacks Upon the United States grants, technical assistance, training, and shall inure to the benefit of any officer or stated that, ‘‘Recognizing that Arab and other programs, in the countries of the Mid- employee of the Foundation, except as salary Muslim audiences rely on satellite television dle East, the expansion of— or reasonable compensation for services. and radio, the government has begun some (1) civil society; (f) RETENTION OF INTEREST.—The Founda- promising initiatives in television and radio (2) opportunities for political participation tion may hold funds provided under this sec- broadcasting to the Arab world, Iran, and Af- for all citizens; tion in interest-bearing accounts prior to the ghanistan. These efforts are beginning to (3) protections for internationally recog- disbursement of such funds to carry out the reach large audiences. The Broadcasting nized human rights, including the rights of purposes of this section, and may retain for Board of Governors has asked for much larg- women; use for such purposes any interest earned er resources. It should get them.’’. (4) educational system reforms; without returning such interest to the (4) A significant expansion of United (5) independent media; Treasury of the United States and without States international broadcasting would pro- (6) policies that promote economic oppor- further appropriation by Congress. vide a cost-effective means of improving tunities for citizens; (g) FINANCIAL ACCOUNTABILITY.— communication with countries with signifi- (7) the rule of law; and (1) INDEPENDENT PRIVATE AUDITS OF THE cant Muslim populations by providing news, (8) democratic processes of government. FOUNDATION.—The accounts of the Founda- information, and analysis, as well as cultural (b) MIDDLE EAST FOUNDATION.— tion shall be audited annually in accordance programming, through both radio and tele- (1) DESIGNATION.—The Secretary of State is with generally accepted auditing standards vision broadcasts. authorized to designate an appropriate pri- by independent certified public accountants (b) SPECIAL AUTHORITY FOR SURGE CAPAC- vate, nonprofit organization that is orga- or independent licensed public accountants ITY.—The United States International Broad- casting Act of 1994 (22 U.S.C. 6201 et seq.) is nized or incorporated under the laws of the certified or licensed by a regulatory author- amended by adding at the end the following United States or of a State as the Middle ity of a State or other political subdivision new section: East Foundation (referred to in this section of the United States. The report of the inde- as the ‘‘Foundation’’). pendent audit shall be included in the annual ‘‘SEC. 316. SPECIAL AUTHORITY FOR SURGE CA- PACITY. (2) FUNDING.—The Secretary of State is au- report required by subsection (h). ‘‘(a) EMERGENCY AUTHORITY.— thorized to provide funding to the Founda- (2) GAO AUDITS.—The financial trans- ‘‘(1) IN GENERAL.—Whenever the President tion through the Middle East Partnership actions undertaken pursuant to this section determines it to be important to the na- Initiative of the Department of State. The by the Foundation may be audited by the tional interests of the United States and so Foundation shall use amounts provided General Accounting Office in accordance certifies to the appropriate congressional under this paragraph to carry out the pur- with such principles and procedures and committees, the President, on such terms poses of this section, including through mak- under such rules and regulations as may be and conditions as the President may deter- ing grants and providing other assistance to prescribed by the Comptroller General of the mine, is authorized to direct any depart- entities to carry out programs for such pur- United States. ment, agency, or other entity of the United poses. (3) AUDITS OF GRANT RECIPIENTS.— States to furnish the Broadcasting Board of (3) NOTIFICATION TO CONGRESSIONAL COMMIT- (A) IN GENERAL.—A recipient of a grant Governors with such assistance as may be TEES.—The Secretary of State shall notify from the Foundation shall agree to permit necessary to provide international broad- the Committee on Foreign Relations of the an audit of the books and records of such re- casting activities of the United States with a Senate and the Committee on International cipient related to the use of the grant funds. surge capacity to support United States for- (B) RECORDKEEPING.—Such recipient shall Relations of the House of Representatives eign policy objectives during a crisis abroad. maintain appropriate books and records to prior to designating an appropriate organiza- ‘‘(2) SUPERSEDES EXISTING LAW.—The au- tion as the Foundation. facilitate an audit referred to subparagraph thority of paragraph (1) supersedes any other (c) GRANTS FOR PROJECTS.— (A), including— provision of law. (i) separate accounts with respect to the (1) FOUNDATION TO MAKE GRANTS.—The Sec- ‘‘(3) SURGE CAPACITY DEFINED.—In this sub- retary of State shall enter into an agreement grant funds; section, the term ‘surge capacity’ means the (ii) records that fully disclose the use of with the Foundation that requires the Foun- financial and technical resources necessary the grant funds; to carry out broadcasting activities in a geo- dation to use the funds provided under sub- (iii) records describing the total cost of graphical area during a crisis. section (b)(2) to make grants to persons any project carried out using grant funds; (other than governments or government en- ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.— and ‘‘(1) IN GENERAL.—There are authorized to tities) located in the Middle East or working (iv) the amount and nature of any funds re- with local partners based in the Middle East be appropriated to the President such sums ceived from other sources that were com- as may be necessary for the President to to carry out projects that support the pur- bined with the grant funds to carry out a poses specified in subsection (a). carry out this section, except that no such project. amount may be appropriated which, when (2) CENTER FOR PUBLIC POLICY.—Under the (h) ANNUAL REPORTS.—Not later than Jan- agreement described in paragraph (1), the added to amounts previously appropriated uary 31, 2006, and annually thereafter, the for such purpose but not yet obligated, would Foundation may make a grant to an institu- Foundation shall submit to Congress and tion of higher education located in the Mid- cause such amounts to exceed $25,000,000. make available to the public an annual re- ‘‘(2) AVAILABILITY OF FUNDS.—Amounts ap- dle East to create a center for public policy port that includes, for the fiscal year prior propriated pursuant to the authorization of for the purpose of permitting scholars and to the fiscal year in which the report is sub- appropriations in this subsection are author- professionals from the countries of the Mid- mitted, a comprehensive and detailed de- ized to remain available until expended. dle East and from other countries, including scription of— ‘‘(3) DESIGNATION OF APPROPRIATIONS.— the United States, to carry out research, (1) the operations and activities of the Amounts appropriated pursuant to the au- training programs, and other activities to in- Foundation that were carried out using thorization of appropriations in this sub- form public policymaking in the Middle East funds provided under this section; section may be referred to as the ‘United and to promote broad economic, social, and (2) grants made by the Foundation to other States International Broadcasting Surge Ca- political reform for the people of the Middle entities with funds provided under this sec- pacity Fund’.’’. East. tion; (c) REPORT.—An annual report submitted (3) APPLICATIONS FOR GRANTS.—An entity (3) other activities of the Foundation to to the President and Congress by the Broad- seeking a grant from the Foundation under further the purposes of this section; and casting Board of Governors under section this section shall submit an application to (4) the financial condition of the Founda- 305(a)(9) of the United States International the head of the Foundation at such time, in tion. Broadcasting Act of 1994 (22 U.S.C. 6204(a)(9)) such manner, and including such informa- Subtitle C—Restoring American Moral shall provide a detailed description of any tion as the head of the Foundation may rea- Leadership activities carried out under section 316 of sonably require. SEC. 221. ADVANCING UNITED STATES INTER- such Act, as added by subsection (b). (d) PRIVATE CHARACTER OF THE FOUNDA- ESTS THROUGH PUBLIC DIPLOMACY. (d) AUTHORIZATION OF APPROPRIATIONS FOR TION.—Nothing in this section shall be con- (a) FINDINGS.—Congress makes the fol- UNITED STATES INTERNATIONAL BROAD- strued to— lowing findings: CASTING ACTIVITIES.—

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(1) IN GENERAL.—In addition to amounts international law, including the obligations prohibited by the Constitution, laws, or trea- otherwise available for such purposes, the in the Convention Against Torture and in ties of the United States. following amounts are authorized to be ap- the minimum standards set forth in the Ge- (2) RELATIONSHIP TO GENEVA CONVEN- propriated to carry out United States Gov- neva Conventions. TIONS.—Nothing in this section shall affect ernment broadcasting activities under the (2) It is the policy of the United States the status of any person under the Geneva United States Information and Educational that all officials of the United States are Conventions or whether any person is enti- Exchange Act of 1948 (22 U.S.C. 1431 et seq.), bound both in wartime and in peacetime by tled to the protections of the Geneva Con- the United States International Broad- the legal prohibitions against torture, cruel, ventions. casting Act of 1994 (22 U.S.C. 6201 et seq.), the inhumane, or degrading treatment set out in (f) RULES, REGULATIONS, AND GUIDELINES.— Foreign Affairs Reform and Restructuring the Constitution, laws, and treaties of the (1) REQUIREMENT.—Not later than 180 days Act of 1998 (as enacted in division G of the United States. after the date of the enactment of this Act, Omnibus Consolidated and Emergency Sup- (3) If there is any doubt as to whether a de- the Secretary and the Director shall pre- plemental Appropriations Act, 1999; Public tainee is entitled to the protections afforded scribe the rules, regulations, or guidelines Law 105–277), and this Act, and to carry out by the Geneva Conventions, it is the policy necessary to ensure compliance with the pro- other authorities in law consistent with such of the United States that such detainee shall hibition in subsection (e)(1) by all personnel purposes: enjoy the protections of the Convention Rel- of the United States Government and by any (A) INTERNATIONAL BROADCASTING OPER- ative to the Treatment of Prisoners of War, person providing services to the United ATIONS.—For ‘‘International Broadcasting done at Geneva August 12, 1949 (6 UST 3316) States Government on a contract basis. Operations’’, $497,000,000 for the fiscal year until such time as the detainee’s status can (2) REPORT TO CONGRESS.—The Secretary 2006. be determined pursuant to the procedures and the Director shall submit to Congress (B) BROADCASTING CAPITAL IMPROVE- authorized by Army Regulation 190–8, Sec- the rules, regulations, or guidelines pre- MENTS.—For ‘‘Broadcasting Capital Improve- tion 1–6. scribed under paragraph (1), and any modi- ments’’, $70,000,000 for the fiscal year 2006. (4) It is the policy of the United States to fications to such rules, regulations, or guide- (2) AVAILABILITY OF FUNDS.—Amounts ap- provide individualized hearings for all de- lines— propriated pursuant to the authorization of tainees for the purpose of expeditiously hold- (A) not later than 30 days after the effec- appropriations in this section are authorized ing detainees accountable for violations of tive date of such rules, regulations, guide- to remain available until expended. the law of war, other relevant international lines, or modifications; and prohibitions, or criminal laws alleged to (B) in a manner and form that will protect SEC. 222. DEPARTMENT OF STATE PUBLIC DIPLO- the national security interests of the United MACY PROGRAMS. have been committed by such detainees or to States. (a) UNITED STATES EDUCATIONAL, CUL- expeditiously conduct intelligence debriefings of such detainees. (g) REPORTS ON POSSIBLE VIOLATIONS.— TURAL, AND PUBLIC DIPLOMACY PROGRAMS.— (1) REQUIREMENT.—The Secretary and the (5) It is the policy of the United States to There is authorized to be appropriated for Director shall each submit, on a timely basis avoid the indefinite detention of any indi- the Department of State to carry out public and not less than twice each year, a report to vidual in a manner which is contrary to the diplomacy programs of the Department Congress on the circumstances surrounding, legal principles and security interests of the under the United States Information and and a status report on, any investigation of United States. Educational Exchange Act of 1948, the Mu- a possible violation of the prohibition in sub- tual Educational and Cultural Exchange Act (c) REPORTING.—The Secretary shall sub- mit to the appropriate congressional com- section (e)(1) by United States Government of 1961, Reorganization Plan Number 2 of personnel or by a person providing services 1977, the Foreign Affairs Reform and Re- mittees: (1) A quarterly report providing the num- to the United States Government on a con- structuring Act of 1998, the Center for Cul- tract basis. tural and Technical Interchange Between ber of detainees who were denied prisoner of war status under the Geneva Conventions (2) FORM OF REPORT.—A report required East and West Act of 1960, the Dante B. Fas- under paragraph (1) shall be submitted in a cell North-South Center Act of 1991, and the and the basis for denying such status to each such detainee. manner and form that— National Endowment for Democracy Act, (A) will protect the national security in- (2) Not later than 180 days after the date of and to carry out other authorities in law terests of the United States; and the enactment of this Act, a report setting consistent with the purposes of such Acts for (B) will not prejudice any prosecution of an forth— ‘‘Educational and Cultural Exchange Pro- individual alleged to have violated the prohi- (A) the proposed schedule for military grams’’, $500,000,000 for the fiscal year 2006. bition in subsection (e)(1). commissions to be held at Guantanamo Bay, (b) ADMINISTRATION OF FOREIGN AFFAIRS.— (h) DEFINITIONS.—In this section: Cuba; and The is authorized to be appropriated for (1) APPROPRIATE CONGRESSIONAL COMMIT- (B) the number of individuals currently the Department of State under ‘‘Administra- TEES.—The term ‘‘appropriate congressional held at Guantanamo Bay, Cuba, the number tion of Foreign Affairs’’ to carry out the au- committees’’ means the Committee on of such individuals who are unlikely to face thorities, functions, duties, and responsibil- Armed Services, the Committee on the Judi- a military commission in the next six ities in the conduct of foreign affairs of the ciary, and the Committee on Foreign Rela- months, and each reason for not bringing United States, and for other purposes au- tions of the Senate and the Committee on such individuals before a military commis- thorized by law for ‘‘Diplomatic and Con- Armed Services, the Committee on the Judi- sion. ciary, and the Committee on International sular Programs’’, $500,000,000 for the fiscal (3) Not later than 15 days after the date of Relations of the House of Representatives. year 2006, which shall only be available for the enactment of this Act, all International public diplomacy international information (2) CONVENTION AGAINST TORTURE.—The Committee of the Red Cross reports, com- term ‘‘Convention Against Torture’’ means programs. pleted prior to the enactment of this Act, SEC. 223. TREATMENT OF DETAINEES. the Convention Against Torture and Other concerning the treatment of detainees in Cruel, Inhuman or Degrading Treatment or (a) FINDINGS.—Consistent with the report United States custody at Guantanamo Bay, Punishment, done at New York December 10, of the National Commission on Terrorist At- Cuba, Iraq, and Afghanistan. Such reports tacks Upon the United States, Congress 1984. should be provided, in classified form. (3) DIRECTOR.—The term ‘‘Director’’ means makes the following findings: (4) Not later than 90 days after the date of the Director of National Intelligence. (1) Carrying out the global war on ter- the enactment of this Act, a report setting (4) GENEVA CONVENTIONS.—The term ‘‘Gene- rorism requires the development of policies forth all interrogation techniques approved, va Conventions’’ means— with respect to the detention and treatment as of the date of the enactment of this Act, (A) the Convention for the Amelioration of of captured international terrorists that are by officials of the United States for use with the Condition of the Wounded and Sick in adhered to by all coalition forces. detainees. Armed Forces in the Field, done at Geneva (2) Article 3 of the Convention Relative to (d) ANNUAL TRAINING REQUIREMENT.—The August 12, 1949 (6 UST 3114); the Treatment of Prisoners of War, done at Secretary of Defense shall certify to the ap- (B) the Convention for the Amelioration of Geneva August 12, 1949 (6 UST 3316), was spe- propriate congressional committees, no later the Condition of the Wounded, Sick, and cifically designed for cases in which the than June 1 of each year, that all Federal Shipwrecked Members of Armed Forces at usual rules of war do not apply, and the min- employees and civilian contractors engaged Sea, done at Geneva August 12, 1949 (6 UST imum standards of treatment pursuant to in the handling or interrogating of detainees 3217); such Article are generally accepted through- have fulfilled an annual training require- (C) the Convention Relative to the Treat- out the world as customary international ment on the laws of war, the Geneva Conven- ment of Prisoners of War, done at Geneva law. tions, the Convention Against Torture, and August 12, 1949 (6 UST 3316); and (b) POLICY.—The policy of the United the obligations of the United States under (D) the Convention Relative to the Protec- States is as follows: international humanitarian law. tion of Civilian Persons in Time of War, done (1) It is the policy of the United States to (e) PROHIBITION ON TORTURE OR CRUEL, IN- at Geneva August 12, 1949 (6 UST 3516). treat all foreign persons captured, detained, HUMANE, OR DEGRADING TREATMENT OR PUN- (5) SECRETARY.—The term ‘‘Secretary’’ interned, or otherwise held in the custody of ISHMENT.— means the Secretary of Defense. the United States (hereinafter ‘‘detainees’’) (1) IN GENERAL.—No detainee shall be sub- (6) TORTURE.—The term ‘‘torture’’ has the humanely and in accordance with the legal ject to torture or cruel, inhumane, or de- meaning given that term in section 2340 of obligations under United States law and grading treatment or punishment that is title 18, United States Code.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00054 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S161 SEC. 224. NATIONAL COMMISSION TO REVIEW uals has affected the standing of the United ing if the President determines that such POLICY REGARDING THE TREAT- States in the world; portion or portions of that meeting is likely MENT OF DETAINEES. (D) determines whether and to what extent to disclose matters that could endanger na- (a) ESTABLISHMENT OF COMMISSION.—There leaders of the United States Armed Forces tional security. If the President makes such is established the National Commission To were given the opportunity to comment on determination, the requirements relating to Review Policy Regarding the Treatment of and influence policy relating to treatment of a determination under section 10(d) of that Detainees. detained individuals; and Act shall apply. (b) PURPOSES.—The purposes of the Com- (E) determines whether and to what extent (3) CONTRACTING.—The Commission may, to mission are as follows: policy relating to the treatment of individ- such extent and in such amounts as are pro- (1) To examine and report upon the role of uals detained during Operation Iraqi Free- vided in appropriation Acts, enter into con- policymakers in the development of intel- dom or Operation Enduring Freedom differed tracts to enable the Commission to discharge ligence related to the treatment of individ- from the policies and practices regarding de- its duties under this section. uals detained during Operation Iraqi Free- tainees established by the Armed Forces (4) INFORMATION FROM FEDERAL AGENCIES.— dom or Operation Enduring Freedom. prior to such operations; and The Commission is authorized to secure di- (2) To examine and report on the impact of (2) to submit to the President and Congress rectly from any executive department, bu- the abuse of prisoners by the United States such report as is required by this section reau, agency, board, commission, office, personnel on the security of the Armed containing such findings, conclusions, and independent establishment, or instrumen- Forces of the United States. recommendations as the Commission shall tality of the Government information, sug- (3) To build upon the reviews of the poli- determine, including proposing organization, gestions, estimates, and statistics for the cies of the United States related to the coordination, planning, management ar- purposes of this section. Each department, treatment of individuals detained by the rangements, procedures, rules, and regula- bureau, agency, board, commission, office, United States, including such reviews con- tions. independent establishment, or instrumen- ducted by the executive branch, Congress, or (e) POWERS OF THE COMMISSION.— tality shall, to the extent authorized by law, other entities. (1) IN GENERAL.— furnish such information, suggestions, esti- (c) COMPOSITION OF THE COMMISSION.— (A) HEARINGS AND EVIDENCE.—The Commis- mates, and statistics directly to the Com- (1) MEMBERS.—The Commission shall be sion or, on the authority of the Commission, mission, upon request made by the Chair- composed of 15 members, of whom— any subcommittee or member thereof, may, person, the chairperson of any subcommittee (A) 3 members shall be appointed by the for the purpose of carrying out this section— created by a majority of the Commission, or majority leader of the Senate; (i) hold such hearings and sit and act at any member designated by a majority of the (B) 3 members shall be appointed by the such times and places, take such testimony, Commission. Speaker of the House of Representatives; receive such evidence, administer such (5) ASSISTANCE FROM FEDERAL AGENCIES.— (C) 3 members shall be appointed by the oaths; and (A) GENERAL SERVICES ADMINISTRATION.— minority leader of the Senate; (ii) require, by subpoena or otherwise, the The Administrator of General Services shall (D) 3 members shall be appointed by the attendance and testimony of such witnesses provide to the Commission on a reimburs- minority leader of the House of Representa- and the production of such books, records, able basis administrative support and other tives; services for the performance of the Commis- (E) 1 member shall be appointed by the correspondence, memoranda, cables, elec- tronic messages, papers, and documents, as sion’s functions. Judge Advocate General of the Army; (B) OTHER DEPARTMENTS AND AGENCIES.—In the Commission or such designated sub- (F) 1 member shall be appointed by the addition to the assistance prescribed in sub- committee or designated member may deter- Judge Advocate General of the Navy; and paragraph (A), departments and agencies of mine advisable. (G) 1 member shall be appointed by the the United States are authorized to provide (B) SUBPOENAS.— Judge Advocate General of the Air Force. to the Commission such services, funds, fa- (2) CHAIRPERSON; VICE CHAIRPERSON.— (i) ISSUANCE.—Subpoenas issued under sub- paragraph (A)(ii) may be issued under the cilities, staff, and other support services as (A) IN GENERAL.—Subject to subparagraph they may determine advisable and as may be (B), the Chairperson and Vice Chairperson of signature of the Chairperson of the Commis- sion, the Vice Chairperson of the Commis- authorized by law. the Commission shall be elected by the mem- (6) GIFTS.—The Commission may accept, sion, the chairperson of any subcommittee bers. use, and dispose of gifts or donations of serv- created by a majority of the Commission, or (B) POLITICAL PARTY AFFILIATION.—The ices or property. any member designated by a majority of the Chairperson and Vice Chairperson may not (7) POSTAL SERVICES.—The Commission Commission, and may be served by any per- be from the same political party. may use the United States mails in the same son designated by the Chairperson, sub- (3) INITIAL MEETING.—Once 9 or more mem- manner and under the same conditions as de- committee chairperson, or member. bers of the Commission have been appointed, partments and agencies of the United States. (ii) ENFORCEMENT.— those members who have been appointed (f) STAFF OF THE COMMISSION.— may meet and, if necessary, select a tem- (I) IN GENERAL.—In the case of contumacy (1) APPOINTMENT AND COMPENSATION.—The porary chairperson, who may begin the oper- or failure to obey a subpoena issued under Chairperson and Vice Chairperson, in accord- ations of the Commission, including the hir- subparagraph (A)(ii), the United States dis- ance with rules agreed upon by the Commis- ing of staff. trict court for the judicial district in which sion, may appoint and fix the compensation (4) QUORUM; VACANCIES.—After its initial the subpoenaed person resides, is served, or of a staff director and such other personnel meeting, the Commission shall meet upon may be found, or where the subpoena is re- as may be necessary to enable the Commis- the call of the Chairperson or a majority of turnable, may issue an order requiring such sion to carry out its functions, without re- its members. Eight members of the Commis- person to appear at any designated place to gard to the provisions of title 5, United sion shall constitute a quorum. Any vacancy testify or to produce documentary or other States Code, governing appointments in the in the Commission shall not affect its pow- evidence. Any failure to obey the order of competitive service, and without regard to ers, but shall be filled in the same manner in the court may be punished by the court as a the provisions of chapter 51 and subchapter which the original appointment was made. contempt of that court. III of chapter 53 of such title relating to clas- (5) SENSE OF CONGRESS ON QUALIFICATIONS (II) ADDITIONAL ENFORCEMENT.—In the case sification and General Schedule pay rates, OF COMMISSION MEMBERS.—It is the sense of of any failure of any witness to comply with except that no rate of pay fixed under this Congress that individuals appointed to the any subpoena or to testify when summoned subsection may exceed the equivalent of that Commission should be prominent United under authority of this section, the Commis- payable for a position at level V of the Exec- States citizens, with national recognition sion may, by majority vote, certify a state- utive Schedule under section 5316 of title 5, and significant depth of experience in the ment of fact constituting such failure to the United States Code. fields of intelligence, law enforcement, or appropriate United States attorney, who (2) PERSONNEL AS FEDERAL EMPLOYEES.— foreign affairs, or experience serving the may bring the matter before the grand jury (A) IN GENERAL.—The executive director United States Government, including service for its action, under the same statutory au- and any personnel of the Commission who in the Armed Forces. thority and procedures as if the United are employees shall be employees under sec- (d) FUNCTIONS OF THE COMMISSION.—The States attorney had received a certification tion 2105 of title 5, United States Code, for functions of the Commission are— under sections 102 through 104 of the Revised purposes of chapters 63, 81, 83, 84, 85, 87, 89, (1) to conduct an investigation that— Statutes of the United States (2 U.S.C. 192 and 90 of that title. (A) investigates the development of policy through 194). (B) MEMBERS OF COMMISSION.—Subpara- relating to individuals detained during Oper- (2) CLOSED MEETINGS.— graph (A) shall not be construed to apply to ation Iraqi Freedom or Operation Enduring (A) IN GENERAL.—Meetings of the Commis- a member of the Commission. Freedom; sion may be closed to the public under sec- (3) DETAILEES.—Any Federal Government (B) determines whether the United States tion 10(d) of the Federal Advisory Committee employee may be detailed to the Commission policy related to the treatment of detained Act (5 U.S.C. App.) or other applicable law. without reimbursement from the Commis- individuals has adversely affected the secu- (B) ADDITIONAL AUTHORITY.—In addition to sion, and such detailee shall retain the rity of the members of the Armed Forces of the authority under subparagraph (A), sec- rights, status, and privileges of his or her the United States; tion 10(a)(1) and (3) of the Federal Advisory regular employment without interruption. (C) determines whether and to what extent Committee Act (5 U.S.C. App.) shall not (4) CONSULTANT SERVICES.—The Commis- the incidences of abuse of detained individ- apply to any portion of a Commission meet- sion is authorized to procure the services of

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00055 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S162 CONGRESSIONAL RECORD — SENATE January 24, 2005 experts and consultants in accordance with provisions of section 23 of the Arms Export ‘‘appropriate congressional committees’’ section 3109 of title 5, United States Code, Control Act (22 U.S.C. 2763); and means the Committee on Appropriations and but at rates not to exceed the daily rate paid (C) for ‘‘Peacekeeping Operations’’, the Committee on Foreign Relations in the a person occupying a position at level IV of $30,000,000 to carry out the provisions of sec- Senate, and the Committee on Appropria- the Executive Schedule under section 5315 of tion 551 of the Foreign Assistance Act of 1961 tions and the Committee on International title 5, United States Code. (22 U.S.C. 2348). Relations of the House of Representatives. (g) COMPENSATION AND TRAVEL EXPENSES.— (2) FISCAL YEARS 2007 AND 2008.— (d) NUCLEAR PROLIFERATION.— (1) COMPENSATION.—Each member of the (A) AUTHORIZATION OF APPROPRIATION.— (1) FINDING.—Congress finds that Paki- Commission may be compensated at not to There are authorized to be appropriated for stan’s maintenance of a global missile and exceed the daily equivalent of the annual each of the purposes described in subpara- nuclear proliferation network would be in- rate of basic pay in effect for a position at graphs (A) through (C) of paragraph (1) such consistent with Pakistan being considered level IV of the Executive Schedule under sec- sums as may be necessary for each of the fis- an ally of the United States. tion 5315 of title 5, United States Code, for cal years 2007 and 2008. (2) SENSE OF CONGRESS.—It is the sense of each day during which that member is en- (B) SENSE OF CONGRESS.—It is the sense of Congress that the national security interest gaged in the actual performance of the du- Congress that the amount appropriated for of the United States will best be served if the ties of the Commission. each purpose described in subparagraphs (A) United States develops and implements a (2) TRAVEL EXPENSES.—While away from through (C) of paragraph (1) for each of the long-term strategy to improve the United their homes or regular places of business in fiscal years 2007 and 2008 should be an States relationship with Pakistan and works the performance of services for the Commis- amount that is equal to 125 percent of the with the Government of Pakistan to stop nu- sion, members of the Commission shall be al- amount appropriated for such purpose during clear proliferation. lowed travel expenses, including per diem in the preceding fiscal year. (3) LIMITATION ON ASSISTANCE TO PAKI- lieu of subsistence, in the same manner as (3) OTHER FUNDS.—Amounts authorized to STAN.—None of the funds appropriated for a persons employed intermittently in the Gov- be appropriated under this section are in ad- fiscal year to provide military or economic ernment service are allowed expenses under dition to amounts otherwise available for assistance to the Government of Pakistan section 5703(b) of title 5, United States Code. such purposes. may be made available for such purpose un- (h) SECURITY CLEARANCES FOR COMMISSION SEC. 232. PAKISTAN. less the President submits to Congress for MEMBERS AND STAFF.—The appropriate de- (a) FINDINGS.—Congress makes the fol- such fiscal year a certification that no mili- partments and agencies of the Government tary or economic assistance provided by the shall cooperate with the Commission in ex- lowing findings: (1) Since September 11, 2001, the Govern- United States to the Government of Paki- peditiously providing to the Commission stan will be provided, either directly or indi- members and staff appropriate security ment of Pakistan has been an important partner in helping the United States remove rectly, to a person that is opposing or under- clearances in a manner consistent with ex- mining the efforts of the United States Gov- isting procedures and requirements, except the Taliban regime in Afghanistan and com- bating international terrorism in the fron- ernment to halt the proliferation of nuclear that no person shall be provided with access weapons. to classified information under this section tier provinces of Pakistan. (e) AUTHORIZATION OF APPROPRIATIONS.— who would not otherwise qualify for such se- (2) There remain a number of critical issues that threaten to disrupt the relation- (1) IN GENERAL.—There are authorized to be curity clearance. appropriated to the President for providing (i) REPORT OF THE COMMISSION.—Not later ship between the United States and Paki- assistance for Pakistan for fiscal year 2006— than 9 months after the date of the first stan, undermine international security, and (A) for ‘‘Development Assistance’’, meeting of the Commission, the Commission destabilize Pakistan, including— $50,000,000 to carry out the provisions of sec- shall submit to the President and Congress a (A) curbing the proliferation of nuclear tion 103, 105, and 106 of the Foreign Assist- report containing such findings, conclusions, weapons technology; ance Act of 1961 (22 U.S.C. 2151a, 2151c, and and recommendations as have been agreed to (B) combating poverty and corruption; 2151d,); by a majority of Commission members. (C) building effective government institu- (B) for the ‘‘Child Survival and Health Pro- (j) TERMINATION.— tions, especially secular public schools; (1) TERMINATION.—The Commission, and all (D) promoting democracy and rule of law, grams Fund’’, $35,000,000 to carry out the the authorities of this section, shall termi- particularly at the national level; and provisions of sections 104 of the Foreign As- nate 60 days after the date on which the re- (E) effectively dealing with Islamic extre- sistance Act of 1961 (22 U.S.C. 2151b); port is submitted under subsection (i). mism. (C) for the ‘‘Economic Support Fund’’, (2) ADMINISTRATIVE ACTIVITIES BEFORE TER- (b) POLICY.—It is the policy of the United $350,000,000 to carry out the provisions of MINATION.—The Commission may use the 60- States— chapter 4 of part II of the Foreign Assistance day period referred to in paragraph (1) for (1) to work with the Government of Paki- Act of 1961 (22 U.S.C. 2346 et seq.); the purpose of concluding its activities, in- stan to combat international terrorism, es- (D) for ‘‘International Narcotics and Law cluding providing testimony to committees pecially in the frontier provinces of Paki- Enforcement’’, $50,000,000 to carry out the of Congress concerning its reports and dis- stan; provisions of section 481 of the Foreign As- seminating the second report. (2) to establish a long-term strategic part- sistance Act of 1961 (22 U.S.C. 2291); (k) AUTHORIZATION OF APPROPRIATIONS.— nership with the Government of Pakistan to (E) for ‘‘Nonproliferation, Anti-Terrorism, There are authorized to be appropriated to address the issues described in subpara- Demining, and Related Programs’’, the Commission to carry out this section graphs (A) through (E) of subsection (a)(2); $10,000,000; $5,000,000, to remain available until ex- (3) to dramatically increase funding for (F) for ‘‘International Military Education pended. United States Agency for International De- and Training’’, $2,000,000 to carry out the Subtitle D—Strategy for the United States velopment and Department of State pro- provisions of section 541 of the Foreign As- Relationship With Afghanistan, Pakistan, grams that assist Pakistan in addressing sistance Act of 1961 (22 U.S.C. 2347); and and Saudi Arabia such issues, if the Government of Pakistan (G) for ‘‘Foreign Military Financing Pro- gram’’, $300,000,000 grants to carry of the pro- SEC. 231. AFGHANISTAN. demonstrates a commitment to building a vision of section 23 of the Arms Export Con- (a) AFGHANISTAN FREEDOM SUPPORT ACT OF moderate, democratic state; and 2002.—Section 108(a) the Afghanistan Free- (4) to work with the international commu- trol Act (22 U.S.C. 2763). dom Support Act of 2002 (22 U.S.C. 7518(a)) is nity to secure additional financial and polit- (2) OTHER FUNDS.—Amounts authorized to amended by striking ‘‘such sums as may be ical support to effectively implement the be appropriated under this section are in ad- necessary for each of the fiscal years 2005 policies set forth in this subsection and help dition to amounts otherwise available for and 2006’’ and inserting ‘‘$2,400,000,000 for fis- to resolve the dispute between the Govern- such purposes. cal year 2006 and such sums as may be nec- ment of Pakistan and the Government of SEC. 233. SAUDI ARABIA. essary for each of the fiscal years 2007 and India over the disputed territory of Kashmir. (a) FINDINGS.—Congress makes the fol- 2008’’. (c) STRATEGY ON PAKISTAN.— lowing findings: (b) OTHER AUTHORIZATIONS OF APPROPRIA- (1) REQUIREMENT FOR REPORT ON STRAT- (1) The Kingdom of Saudi Arabia has an TIONS.— EGY.—Not later than 90 days after the date of uneven record in the fight against terrorism, (1) Fiscal year 2006.—There are authorized enactment of this Act, the President shall especially with respect to terrorist financ- to be appropriated to the President for pro- submit to the appropriate congressional ing, support for radical madrassas, and a viding assistance for Afghanistan in a man- committees a report, in classified form if lack of political outlets for its citizens, that ner consistent with the provisions of the Af- necessary, that describes the long-term poses a threat to the security of the United ghanistan Freedom Support Act of 2002 (22 strategy of the United States to engage with States, the international community, and U.S.C. 7501 et seq.) for fiscal year 2006— the Government of Pakistan to address the the Kingdom of Saudi Arabia itself. (A) for ‘‘International Military Education issues described in subparagraphs (A) (2) The United States has a national secu- and Training’’, $1,000,000 to carry out the through (E) of subsection (a)(2) in order ac- rity interest in working with the Govern- provisions of section 541 of the Foreign As- complish the goal of building a moderate, ment of Saudi Arabia to combat inter- sistance Act of 1961 (22 U.S.C. 2347); democratic Pakistan. national terrorists that operate within that (B) for ‘‘Foreign Military Financing Pro- (2) APPROPRIATE CONGRESSIONAL COMMIT- nation or that operate outside Saudi Arabia gram’’ grants, $444,000,000 to carry out the TEES DEFINED.—In this subsection the term with the support of citizens of Saudi Arabia.

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(4) Technical exchange and training pro- forcement agencies, providing more political (3) PERSONNEL MATTERS.— grams. rights to its citizens, increasing the rights of (A) COMPENSATION.—Each member of a (5) The participation of a redevelopment women, engaging in comprehensive edu- commission established under paragraph (1) manager and of business, legal, financial, or cational reform, enhancing monitoring of who is not an officer or employee of the Fed- other appropriate experts. charitable organizations, promulgating and eral Government shall be compensated at a (6) Promotional or marketing plans. enforcing domestic laws and regulation on rate equal to the daily equivalent of the an- (7) Provision for startup funds, loans, or terrorist financing. nual rate of basic pay prescribed for level IV grants, or other venture capital or financing. (b) POLICY.—It is the policy of the United of the Executive Schedule under section 5315 (g) LIMITATION ON AVAILABILITY OF States— of title 5, United States Code, for each day FUNDS.—No amount authorized to be appro- (1) to engage with the Government of (including travel time) during which such priated by subsection (h) may be available Saudi Arabia to openly confront the issue of member is engaged in the performance of the for a facility under the program established terrorism, as well as other problematic duties of such commission. All members of a under subsection (a) unless the deadlines for issues such as the lack of political freedoms, commission who are officers or employees of the preparation of the proposed facility reuse with the goal of restructuring the relation- the United States shall serve without com- plan for the facility under subsection (d) and ship on terms that leaders of both nations pensation in addition to that received for for the preparation of the final facility reuse plan for the facility under subsection (e) are can publicly support; their services as officers or employees of the both met. (2) to enhance counterterrorism coopera- United States. tion with the Government of Saudi Arabia, if (h) AUTHORIZATION OF APPROPRIATIONS.— (B) TRAVEL EXPENSES.—The members of a (1) IN GENERAL.—There is authorized to be the political leaders of such Government are commission established under paragraph (1) committed to making a serious, sustained ef- appropriated to the Department of Energy, shall be allowed travel expenses, including $60,000,000 to carry out this section, of which fort to combat terrorism; and per diem in lieu of subsistence, at rates au- (3) to support the efforts of the Govern- not more than $4,000,000 may be available to thorized for employees of agencies under sub- each commission established under sub- ment of Saudi Arabia to make political, eco- chapter I of chapter 57 of title 5, United nomic, and social reforms throughout the section (c). States Code, while away from their homes or (2) AVAILABILITY OF FUNDS.—The amount country. regular places of business in the performance (c) STRATEGY ON SAUDI ARABIA.— authorized to be appropriated by paragraph of services for such commission. (1) REQUIREMENT FOR REPORT ON STRAT- (1) shall remain available until expended. (4) FACA.—The Federal Advisory Com- EGY.—Not later than 90 days after the date of SEC. 303. RUSSIAN TACTICAL NUCLEAR WEAP- mittee Act (5 U.S.C. App.) shall not apply to enactment of this Act, the President shall ONS. any activities of a commission established submit to the appropriate congressional (a) REPORT REQUIRED.—Not later than six under paragraph (1). committees a report, in classified form if months after the date of the enactment of (5) OPEN MEETINGS.—The meetings of any necessary, that describes the long-term this Act, the President shall submit to Con- commission under paragraph (1) shall, to the strategy of the United States— gress a report setting forth the following: maximum extent practicable, be open to the (A) to engage with the Government of (1) An assessment of the number, location, public. Saudi Arabia to facilitate political, eco- condition, and security of Russian tactical nomic, and social reforms that will enhance (d) PROPOSED FACILITY REUSE PLAN.— nuclear weapons. the ability of the Government of Saudi Ara- (1) REQUIREMENT FOR PROPOSED PLAN.—Not (2) An assessment of the threat that would bia to combat international terrorism; and later than six months after the designation be posed by the theft of Russian tactical nu- (B) to effectively prevent the financing of of a facility under subsection (b), the com- clear weapons. terrorists in Saudi Arabia. mission for the facility under subsection (c) (3) A plan for developing with Russia a co- operative program to secure, consolidate, (2) APPROPRIATE CONGRESSIONAL COMMIT- shall submit to the Secretary of Energy and and, as appropriate, dismantle Russian tac- TEES DEFINED.—In this subsection the term the Minister of Atomic Energy of Russia a ‘‘appropriate congressional committees’’ proposed plan on the closure or conversion of tical nuclear weapons. (b) PROGRAM.—The Secretary of Defense means the Committee on Appropriations and the facility to non-defense work. and the Secretary of Energy shall jointly the Committee on Foreign Relations in the (2) ELEMENTS OF PROPOSED PLAN.—A pro- work with Russia to establish a cooperative posed plan under paragraph (1) may include Senate, and the Committee on Appropria- program, based on the report under sub- one or more of the elements specified in sub- tions and the Committee on International section (a), to secure, consolidate, and, as ap- section (f). Relations of the House of Representatives. propriate, dismantle Russian tactical nu- (3) AVAILABILITY OF PROPOSED PLAN.—Any TITLE III—PROTECTION FROM TER- clear weapons in order to achieve reductions RORIST ATTACKS THAT UTILIZE NU- proposed plan submitted under paragraph (1) in the total number of Russian tactical nu- CLEAR, CHEMICAL, BIOLOGICAL, AND shall be made public upon its submittal. clear weapons. RADIOLOGICAL WEAPONS (e) FINAL FACILITY REUSE PLAN.— (c) AUTHORIZATION OF APPROPRIATIONS.— Subtitle A—Non-Proliferation Programs (1) REQUIREMENT FOR FINAL PLAN.—Not (1) DEPARTMENT OF DEFENSE.—There is au- SEC. 301. REPEAL OF LIMITATIONS TO THREAT later than nine months after receiving a pro- thorized to be appropriated for the Depart- REDUCTION ASSISTANCE. posed plan for a facility under subsection (d), ment of Defense, $25,000,000 to carry out this Section 5 of S. 2980 of the 108th Congress the Secretary of Energy and the Minister of section. (the ‘‘Nunn-Lugar Cooperative Threat Re- Atomic Energy of Russia shall jointly de- (2) DEPARTMENT OF ENERGY.—There is au- duction Act of 2004’’), as introduced on No- velop a final plan on the closure or conver- thorized to be appropriated for the Depart- vember 16, 2004, is hereby enacted into law. sion of the facility to non-defense work. ment of Energy, $25,000,000 to carry out this SEC. 302. REUSE OF RUSSIAN NUCLEAR FACILI- (2) ELEMENTS OF FINAL PLAN.—A final plan section. TIES. for a facility under paragraph (1) shall in- SEC. 304. ADDITIONAL ASSISTANCE TO ACCEL- (a) IN GENERAL.—The Secretary of Energy clude the following: ERATE NON-PROLIFERATION PRO- shall work with the Minister of Atomic En- (A) Any of the elements specified in sub- GRAMS. ergy of Russia to carry out a program to section (f). (a) AUTHORIZATION OF APPROPRIATIONS FOR close or convert to non-defense work one or (B) Assurances of access to the facility THE DEPARTMENT OF DEFENSE.—There is au- more nuclear weapons assembly and dis- necessary to carry out the final plan. thorized to be appropriated to the Depart- assembly facilities in Russia. (C) Resolution of any matters relating to ment of Defense $40,000,000 for fiscal year (b) DESIGNATION OF FACILITIES.—The Sec- liability and taxation. 2006 for Cooperative Threat Reduction Ac- retary of Energy and Minister of Atomic En- (D) An estimate of the costs of the United tivities as follows: ergy of Russia shall jointly designate each States, and of Russia, under the final plan. (1) To accelerate security upgrades at war- facility to be covered by the program under (E) The commitment of Russia to pay at head storage sites located in Russia or an- subsection (a). least 15 percent of the costs of the final plan. other country of the former Soviet Union, (c) COMMISSIONS TO PROVIDE ADVICE AND (F) Milestones for the final plan, including $15,000,000. RECOMMENDATIONS.— a deadline for the closure or conversion of (2) To accelerate security upgrades at war- (1) IN GENERAL.—Not later than two the facility to non-defense work. head storage sites located in countries other months after the designation of a facility (G) Appropriate auditing and accounting than the countries of the former Soviet under subsection (b), the Secretary of En- mechanisms. Union, $10,000,000. ergy shall establish a commission to provide (3) To accelerate biological weapons pro- advice and recommendations on the closure (f) PLAN ELEMENTS.—The plan for a facility liferation prevention programs in or conversion of the facility to non-defense under subsection (d) or (e) may include one Kazakhstan, Georgia, and Uzbekiztan, work. or more of the following elements: $15,000,000. (2) COMMISSION MEMBERSHIP.—Each com- (1) A retraining program for facility em- (b) AUTHORIZATION OF APPROPRIATIONS FOR mission established under paragraph (1) shall ployees. THE DEPARTMENT OF ENERGY.—There is

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authorized to be appropriated to the Depart- (B) increase the number of full-time in- ‘‘(2) REPORT.—Not later than December 31, ment of Energy $95,000,000 for fiscal year 2006 spectors and associated support staff in the 2005, the Undersecretary shall submit to the for nonproliferation activities of the Na- Bureau of Customs and Border Protection by appropriate congressional committees a re- tional Nuclear Security Administration as the equivalent of at least 200 more than the port on the implementation of the require- follows: number of such employees in the Bureau as ment under paragraph (1). (1) To accelerate the Global Threat Reduc- of the end of the preceding fiscal year. ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— tion Initiative, $20,000,000. (2) WAIVER OF FTE LIMITATION.—The Under There is authorized to be appropriated to the (2) To accelerate security upgrades at war- Secretary is authorized to waive any limita- Undersecretary $217,000,000 for fiscal year head storage sites located in Russia or an- tion on the number of full-time equivalent 2006 to carry out this subsection. other country of the former Soviet Union, personnel assigned to the Department of ‘‘(b) INTEGRATED CARGO INSPECTION SYS- $15,000,000. Homeland Security to fulfill the require- TEM.— (3) To accelerate the closure of the pluto- ments of paragraph (1). ‘‘(1) PLAN.—The Undersecretary for Border nium producing reactor at Zheleznogorsk, (b) TRAINING.—The Under Secretary shall and Transportation Security shall develop a Russia as part of the program to eliminate provide appropriate training for agents, in- plan to integrate radiation detection portal weapons grade plutonium production, spectors, and associated support staff on an equipment with gamma-ray inspection tech- ongoing basis to utilize new technologies and $25,000,000. nology equipment at United States seaports to ensure that the proficiency levels of such (4) To accelerate completion of comprehen- and foreign seaports that are participating personnel are acceptable to protect the bor- sive security upgrades at Russian storage the Container Security Initiative in order to ders of the United States. sites for weapons-usable nuclear materials, facilitate the detection of nuclear weapons $15,000,000. Subtitle C—Seaport Protection in maritime cargo containers. Such plan (c) AUTHORIZATION OF APPROPRIATIONS FOR SEC. 321. FINDINGS. shall include methods for automatic identi- THE DEPARTMENT OF STATE.— Congress makes the following findings: fication of containers and vehicles for in- (1) IN GENERAL.—There is authorized to be (1) The United States port system is a vital spection in a timely manner and a data shar- appropriated to the Department of State artery of the economy of the United States. ing network capable of transmitting gamma- $25,000,000 for fiscal year 2006 for non- Almost 95 percent of all foreign trade passes ray images and cargo data among relevant proliferation activities as follows: through one or more of the 361 ports in the ports and the National Targeting Center of (A) To accelerate engagement of former United States. Such seaports handle more the Bureau of Customs and Border Protec- chemical an biological weapons scientists in than 2,000,000,000 tons of domestic and inter- tion. Russia and the countries of the former So- national freight each year of which has a ‘‘(2) REPORT.—Not later than 180 days after viet Union through the Bio-Chem Redirect value of more than $740,000,000. The shipment the date of the enactment of the Targeting Program, $15,000,000. of cargo in vessels creates employment for Terrorists More Effectively Act of 2005, the (B) To enhance efforts to combat bioter- 13,000,000 people within the United States. Undersecretary for Border and Transpor- rorism by transforming the for Soviet bio- (2) The United States Coast Guard has esti- tation Security shall prepare and submit to logical weapons research and production fa- mated that, given this tremendous com- the appropriate congressional committees a cilities to commercial enterprises through merce, a terrorist attack shutting down a report that contains— the BioIndustry Initiative, $10,000,000. major port in the United States would have ‘‘(A) a description of the plan developed (2) AVAILABILITY OF FUNDS.—The amount a $60,000,000 impact on the United States under paragraph (1), including any infra- authorized to be appropriated by paragraph economy during the first 30 days after such structure improvements required at the sea- (1) shall remain available until expended. an attack. ports involved; SEC. 305. ADDITIONAL ASSISTANCE TO THE (3) Although 6,000,000 cargo containers, ‘‘(B) an estimate of the costs associated INTERNATIONAL ATOMIC ENERGY each a possible hiding place for a bomb or with implementation of the plan; and AGENCY. other weapon, are off-loaded at ports in the ‘‘(C) an estimate of the timeframe for im- There is authorized to be appropriated to United States each year, less than 1⁄10 of plementation of the plan.’’. the Department of Energy $20,000,000 to be these containers are physically inspected. A used to provide technical and other assist- SEC. 324. ACCELERATION OF THE MEGAPORTS container ship can carry as many as 3,000 INITIATIVE. ance to the International Atomic Energy containers, each one weighing up to 45,000 Agency to support nonproliferation pro- pounds, hundreds of which may be off-loaded (a) DEPLOYMENT.—Not later than Sep- grams. Such amount is in addition to at a port. tember 30, 2007, the Administrator of the Na- amounts otherwise available for such pur- (4) The United States Coast Guard has esti- tional Nuclear Security Administration pose. mated that the maritime security require- shall— (1) complete agreements under the Subtitle B—Border Protection ments set for ports by the Maritime Trans- portation Security Act of 2002 (Public Law Megaports Initiative of the Office of Inter- SEC. 311. FINDINGS. national Material Protection and Coopera- Congress makes the following findings: 107–295; 116 Stat. 2064), which are critical to protecting United States ports from a nu- tion with each country that possesses one or (1) More than 500,000,000 people cross the more of the world’s twenty largest seaports, borders of the United States at legal points clear terrorist attack, will cost $5,400,000,000 to implement over a 10-year period. as defined by volume of maritime cargo traf- of entry each year, including approximately fic; and SEC. 322. PORT SECURITY GRANT FUNDING. 330,000,000 people who are not citizens of the (2) deploy radiation portal monitoring United States. Section 70107(h) of title 46, United States Code, is amended to read as follows: equipment to each seaport operating under (2) The National Commission on Terrorist an agreement described in subsection (a)(1). Attacks Upon the United States found that ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to (b) AUTHORIZATION OF APPROPRIATIONS.— 15 of the 19 hijackers involved in the Sep- the Secretary to carry out subsections (a) There is authorized to be appropriated to the tember 11, 2001 terrorist attacks ‘‘were po- through (g)— Administrator such funds as are necessary to tentially vulnerable to interception by bor- ‘‘(1) $500,000,000 for fiscal year 2006; carry out the provisions of this section. der authorities’’. ‘‘(2) $750,000,000 for fiscal year 2007; (3) Officials with the Bureau of Customs SEC. 325. TANKER SECURITY INITIATIVE. ‘‘(3) $1,000,000,000 for fiscal year 2008; and Border Protection and with the Bureau (a) ESTABLISHMENT.—The Secretary of ‘‘(4) $1,250,000,000 for fiscal year 2009; and of Immigration and Customs Enforcement Homeland Security shall establish a Tanker ‘‘(5) such sums as may be needed for each have stated that there is a shortage of Security Initiative to promulgate and en- fiscal year after fiscal year 2009.’’. agents in such Bureaus. Due to an inad- force standards and carry out activities to equate budget, the Bureau of Immigration SEC. 323. DEPLOYMENT OF RADIATION DETEC- ensure that tanker vessels that transport oil, TION PORTAL EQUIPMENT; INTE- natural gas, or other materials are not used and Customs Enforcement has effected a hir- GRATED CARGO INSPECTION SYS- ing freeze since March 2004, and the Bureau TEM. by terrorists or as carriers of weapons of has not made public any plans to end this (a) IN GENERAL.—Subtitle C of title IV of mass destruction. freeze. the Homeland Security Act of 2002 (6 U.S.C. (b) ELEMENTS.—To carry out the Tanker SEC. 312. HIRING AND TRAINING OF BORDER SE- 231 et seq.) is amended by adding at the end Security Initiative the Secretary of Home- CURITY PERSONNEL. the following new section: land Security may— (a) INSPECTORS AND AGENTS.— ‘‘SEC. 431. DETECTION OF NUCLEAR MATERIAL (1) develop physical standards intended to (1) INCREASE IN INSPECTORS AND AGENTS.— AT UNITED STATES SEAPORTS. prevent terrorists from placing a weapon of During each of fiscal years 2005 through 2008, ‘‘(a) DEPLOYMENT OF RADIATION DETECTION mass destruction in or on a tanker vessel the Under Secretary shall— PORTAL EQUIPMENT.— without detection; (A) increase the number of full-time agents ‘‘(1) DEPLOYMENT.—Not later than Sep- (2) develop detection equipment, and pre- and associated support staff in the Bureau of tember 30, 2006, the Undersecretary for Bor- scribe the use of such equipment, to be em- Immigration and Customs Enforcement of der and Transportation Security shall deploy ployed on a tanker vessel that is bound for a the Department of Homeland Security by the radiation detection portal equipment at all United States port of entry; equivalent of at least 100 more than the United States seaports, other United States (3) develop new security inspection proce- number of such employees in the Bureau as ports of entry, and major facilities as deter- dures required to be carried out on a tanker of the end of the preceding fiscal year; and mined by the Undersecretary. vessel at a foreign port of embarkation, on

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00058 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S165 the high seas, or in United States waters Assistance Grant Program, a program that source officers who operate in and around el- prior to the arrival of such tanker at a resulted from the combination of the Edward ementary and secondary schools to serve as United States port of entry; Byrne Memorial Grant Program and the a law enforcement liaison with other Fed- (4) carry out research and development of Local Law Enforcement Block Grant Pro- eral, State, and local law enforcement and sensing devices to detect any nuclear device gram. regulatory agencies, combat school-related that is placed in or on a tanker vessel; and (5) Funding for the Edward Byrne Memo- crime and disorder problems, gang member- (5) provide assistance to a foreign country rial Justice Assistance Grant Program, as ship and criminal activity, firearms and ex- to assist such country in carrying out any provided in the Consolidated Appropriations plosives-related incidents, illegal use and provisions of the Tanker Security Initiative. Act, 2005, has been reduced by nearly 50 per- possession of alcohol, and the illegal posses- (c) REPORT.—Not later than 180 days after cent since fiscal year 2002. sion, use, and distribution of drugs;’’; the date of enactment of this Act, the Sec- (b) SENSE OF CONGRESS.—It is the sense of (4) in paragraph (10) by striking ‘‘and’’ at retary of Homeland Security shall submit to Congress that the President should request the end; Congress a report that includes— in the annual budget proposal, and Congress (5) in paragraph (11) by striking the period (1) a description of the terrorism risks should appropriate, the full amount author- that appears at the end and inserting ‘‘; posed by tanker vessels: ized to be appropriated in subsection (c). and’’; and (2) the elements of the Tanker Security (c) AUTHORIZATION OF APPROPRIATIONS.— (6) by adding at the end the following: Initiative developed to combat such risks; There is authorized to be appropriated for ‘‘(12) develop and implement innovative (3) a proposed budget describing the re- the Edward Byrne Memorial Justice Assist- programs (such as the TRIAD program) that sources needed to carry out the Tanker Se- ance Grant Program— bring together a community’s sheriff, chief curity Initiative during the 3-year period be- (1) for fiscal year 2006, $1,250,000,000; of police, and elderly residents to address the ginning on the date of the enactment of this (2) for fiscal year 2007, $1,400,000,000; and public safety concerns of older citizens.’’. Act; and (3) for fiscal year 2008, $1,600,000,000. (d) TECHNICAL ASSISTANCE.—Section 1701(f) (4) any proposal for legislation that the SEC. 333. PROVIDING RELIABLE OFFICERS, TECH- Secretary determines would address effec- NOLOGY, EDUCATION, COMMUNITY of title I of the Omnibus Crime Control and tively such risks. PROSECUTORS, AND TRAINING IN Safe Streets Act of 1968 (42 U.S.C. 3796dd(f)) OUR NEIGHBORHOOD INITIATIVE. Subtitle D—First Responders is amended— (a) COPS PROGRAM.—Section 1701(a) of (1) in paragraph (1)— SEC. 331. FINDINGS. title I of the Omnibus Crime Control and (A) by inserting ‘‘use up to 5 percent of the Congress makes the following findings: Safe Streets Act of 1968 (42 U.S.C. 3796dd(a)) funds appropriated under subsection (a) to’’ (1) In a report entitled ‘‘Emergency First is amended by— after ‘‘The Attorney General may’’; Responders: Drastically Underfunded, Dan- (1) inserting ‘‘and prosecutor’’ after ‘‘in- (B) by inserting at the end the following: gerously Unprepared’’, an independent task crease police’’; and ‘‘In addition, the Attorney General may use force sponsored by the Council on Foreign (2) inserting ‘‘to enhance law enforcement up to 5 percent of the funds appropriated Relations found that ‘‘America’s local emer- access to new technologies, and’’ after ‘‘pres- under subsections (d), (e), and (f) for tech- gency responders will always be the first to ence,’’. nical assistance and training to States, units confront a terrorist incident and will play (b) HIRING AND REDEPLOYMENT GRANT of local government, Indian tribal govern- the central role in managing its immediate PROJECTS.—Section 1701(b) of title I of the ments, and to other public and private enti- consequences. Their efforts in the first min- Omnibus Crime Control and Safe Streets Act ties for those respective purposes.’’; utes and hours following an attack will be of 1968 (42 U.S.C. 3796dd(b)) is amended— (2) in paragraph (2) by inserting ‘‘under critical to saving lives, establishing order, (1) in paragraph (1)— subsection (a)’’ after ‘‘the Attorney Gen- and preventing mass panic. The United (A) in subparagraph (B)— eral’’; and States has both a responsibility and a crit- (i) by inserting after ‘‘Nation’’ the fol- (3) in paragraph (3)— ical need to provide them with the equip- lowing: ‘‘, or pay overtime to existing career (A) by striking ‘‘the Attorney General ment, training, and other resources nec- law enforcement officers to the extent that may’’ and inserting ‘‘the Attorney General essary to do their jobs safely and effec- such overtime is devoted to community po- shall’’; tively.’’. licing efforts’’; and (B) by inserting ‘‘regional community po- (2) The task force further concluded that (ii) by striking ‘‘and’’ at the end; licing institutes’’ after ‘‘operation of’’; and many state and local emergency responders, (B) in subparagraph (C), by— (C) by inserting ‘‘representatives of police including police officers and firefighters, (i) striking ‘‘or pay overtime’’; and labor and management organizations, com- lack the equipment and training needed to (ii) striking the period at the end and in- munity residents,’’ after ‘‘supervisors,’’. respond effectively to a terrorist attack in- serting ‘‘; and’’; and volving weapons of mass destruction. (C) by adding at the end the following: (e) TECHNOLOGY AND PROSECUTION PRO- (3) The Federal Government has a responsi- ‘‘(D) promote higher education among in- GRAMS.—Section 1701 of title I of the Omni- bility to ensure that the people of the United service State and local law enforcement offi- bus Crime Control and Safe Streets Act of States are protected to the greatest possible cers by reimbursing them for the costs asso- 1968 (42 U.S.C. 3796dd) is amended by— extent against a terrorist attack, especially ciated with seeking a college or graduate (1) striking subsection (k); an attack that utilizes nuclear, chemical, bi- school education.’’; and (2) redesignating subsections (f) through (j) ological, or radiological weapons, and con- (2) in paragraph (2) by striking all that fol- as subsections (g) through (k); and sequently, the Federal Government has a lows ‘‘SUPPORT SYSTEMS.—’’ and inserting (3) striking subsection (e) and inserting the critical responsibility to address the equip- ‘‘Grants pursuant to— following: ment, training, and other needs of State and ‘‘(A) paragraph (1)(B) for overtime may not ‘‘(e) LAW ENFORCEMENT TECHNOLOGY PRO- local first responders. exceed 25 percent of the funds available for GRAM.—Grants made under subsection (a) SEC. 332. RESTORATION OF JUSTICE ASSISTANCE grants pursuant to this subsection for any FUNDING. fiscal year; may be used to assist police departments, in (a) FINDINGS.—Congress makes the fol- ‘‘(B) paragraph (1)(C) may not exceed 20 employing professional, scientific, and tech- lowing findings: percent of the funds available for grants pur- nological advancements that will help (1) State and local police officers, fire- suant to this subsection in any fiscal year; them— fighters, and emergency responders play an and ‘‘(1) improve police communications essential role in the efforts of the United ‘‘(C) paragraph (1)(D) may not exceed 5 per- through the use of wireless communications, States to prevent terrorist attacks and, if an cent of the funds available for grants pursu- computers, software, videocams, databases attack occurred, to address the effects of the ant to this subsection for any fiscal year.’’. and other hardware and software that allow attack. (c) ADDITIONAL GRANT PROJECTS.—Section law enforcement agencies to communicate (2) An independent task force has con- 1701(d) of title I of the Omnibus Crime Con- more effectively across jurisdictional bound- cluded that hundreds of local police offices trol and Safe Streets Act of 1968 (42 U.S.C. aries and effectuate interoperability; and firefighting and emergency response 3796dd(d)) is amended— ‘‘(2) develop and improve access to crime units throughout the United States are un- (1) in paragraph (2)— solving technologies, including DNA anal- prepared for responding to a terrorist attack (A) by inserting ‘‘integrity and ethics’’ ysis, photo enhancement, voice recognition, involving nuclear, chemical, biological, or after ‘‘specialized’’; and and other forensic capabilities; and radiological weapons. (B) by inserting ‘‘and’’ after ‘‘enforcement ‘‘(3) promote comprehensive crime analysis (3) The Edward Byrne Memorial Justice officers’’; by utilizing new techniques and tech- Assistance Grant Program provides critical (2) in paragraph (7) by inserting ‘‘school of- nologies, such as crime mapping, that allow Federal support for personnel, equipment, ficials, religiously-affiliated organizations,’’ law enforcement agencies to use real-time training, and technical assistance for the after ‘‘enforcement officers’’; crime and arrest data and other related in- homeland security responsibilities of local (3) by striking paragraph (8) and inserting formation—including non-criminal justice law enforcement offices. the following: data—to improve their ability to analyze, (4) The Consolidated Appropriations Act, ‘‘(8) establish school-based partnerships be- predict, and respond pro-actively to local 2005 (Public Law 108–447) appropriated fund- tween local law enforcement agencies and crime and disorder problems, as well as to ing for the Edward Byrne Memorial Justice local school systems, by using school re- engage in regional crime analysis.

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‘‘(f) COMMUNITY-BASED PROSECUTION PRO- fessionals, and youth counselors who are re- agent, or employee of a State, unit of local GRAM.—Grants made under subsection (a) sponsible for the implementation of preven- government, public or private college or uni- may be used to assist State, local or tribal tion/intervention programs within the versity, or Indian tribe authorized by law or prosecutors’ offices in the implementation of schools;’’; and by a government agency to engage in or su- community-based prosecution programs that (C) by adding at the end the following: pervise the prevention, detection, or inves- build on local community policing efforts. ‘‘(H) to work with school administrators, tigation of any violation of criminal law, or Funds made available under this subsection members of the local parent teacher associa- authorized by law to supervise sentenced may be used to— tions, community organizers, law enforce- criminal offenders. ment, fire departments, and emergency med- ‘‘(1) hire additional prosecutors who will be (3) PUBLIC SAFETY OFFICER.—The term ical personnel in the creation, review, and assigned to community prosecution pro- ‘‘public safety officer’’ means any person implementation of a school violence preven- grams, including programs that assign pros- serving a public or private agency with or tion plan; ecutors to handle cases from specific geo- without compensation as a law enforcement graphic areas, to address specific violent ‘‘(I) to assist in documenting the full de- officer, as a firefighter, or as a member of a crime and other local crime problems (in- scription of all firearms found or taken into rescue squad or ambulance crew. cluding intensive illegal gang, gun and drug custody on school property and to initiate a (4) SECRETARY.—The term ‘‘Secretary’’ enforcement projects and quality of life ini- firearms trace and ballistics examination for means the Secretary of Homeland Security. tiatives), and to address localized violent and each firearm with the local office of the Bu- other crime problems based on needs identi- reau of Alcohol, Tobacco, and Firearms; (5) STATE.—The term ‘‘State’’ means each fied by local law enforcement agencies, com- ‘‘(J) to document the full description of all of the 50 States, the District of Columbia, munity organizations, and others; explosives or explosive devices found or and the Commonwealth of Puerto Rico. ‘‘(2) redeploy existing prosecutors to com- taken into custody on school property and (6) UNIT OF LOCAL GOVERNMENT.—The term munity prosecution programs as described in report to the local office of the Bureau of Al- ‘‘unit of local government’’ means a county, paragraph (1) of this section by hiring victim cohol, Tobacco, and Firearms; and municipality, town, township, village, par- and witness coordinators, paralegals, com- ‘‘(K) to assist school administrators with ish, borough, or other unit of general govern- munity outreach, and other such personnel; the preparation of the Department of Edu- ment below the State level. and cation, Annual Report on State Implementa- tion of the Gun-Free Schools Act which (b) FIRST RESPONDERS PARTNERSHIP GRANT ‘‘(3) establish programs to assist local pros- PROGRAM FOR PUBLIC SAFETY OFFICERS.— ecutors’ offices in the implementation of tracks the number of students expelled per year for bringing a weapon, firearm, or ex- (1) IN GENERAL.—The Secretary is author- programs that help them identify and re- ized to make grants to States, units of local spond to priority crime problems in a com- plosive to school.’’. (h) AUTHORIZATION OF APPROPRIATIONS.— government, and Indian tribes to support munity with specifically tailored solutions. Section 1001(a)(11) of title I of the Omnibus public safety officers in their efforts to pro- At least 75 percent of the funds made avail- Crime Control and Safe Streets Act of 1968 tect homeland security and prevent and re- able under this subsection shall be reserved (42 U.S.C. 3793(a)(11)) is amended— spond to acts of terrorism. for grants under paragraphs (1) and (2) and of (1) by amending subparagraph (A) to read (2) USE OF FUNDS.—Grants awarded under those amounts no more than 10 percent may as follows: this section shall be— be used for grants under paragraph (2) and at ‘‘(A) There are authorized to be appro- (A) distributed directly to the State, unit least 25 percent of the funds shall be reserved priated to carry out part Q, to remain avail- of local government, or Indian tribe; and for grants under paragraphs (1) and (2) to able until expended— (B) used to fund overtime expenses, equip- units of local government with a population ‘‘(i) $1,150,000,000 for fiscal year 2006; ment, training, and facilities to support pub- of less than 50,000.’’. ‘‘(ii) $1,150,000,000 for fiscal year 2007; lic safety officers in their efforts to protect (f) RETENTION GRANTS.—Section 1703 of ‘‘(iii) $1,150,000,000 for fiscal year 2008; homeland security and prevent and respond title I of the Omnibus Crime Control and ‘‘(iv) $1,150,000,000 for fiscal year 2009; Safe Streets Act of 1968 (42 U.S.C. 3796dd–2) is ‘‘(v) $1,150,000,000 for fiscal year 2010; and to acts of terrorism. amended by inserting at the end the fol- ‘‘(vi) $1,150,000,000 for fiscal year 2011.’’; and (3) ALLOCATION AND DISTRIBUTION OF lowing: (2) in subparagraph (B)— FUNDS.— ‘‘(d) RETENTION GRANTS.—The Attorney (A) by striking ‘‘3 percent’’ and inserting (A) SET-ASIDE FOR INDIAN TRIBES.— General may use no more than 50 percent of ‘‘5 percent’’; (i) IN GENERAL.—The Secretary shall re- the funds under subsection (a) to award (B) by striking ‘‘1701(f)’’ and inserting serve 1 percent of the amount appropriated grants targeted specifically for retention of ‘‘1701(g)’’; for grants pursuant to this section to be used police officers to grantees in good standing, (C) by striking the second sentence and in- for grants to Indian tribes. with preference to those that demonstrate fi- serting ‘‘Of the remaining funds, if there is a (ii) SELECTION OF INDIAN TRIBES.— nancial hardship or severe budget constraint demand for 50 percent of appropriated hiring (I) IN GENERAL.—The Secretary shall award that impacts the entire local budget and funds, as determined by eligible hiring appli- grants under this paragraph to Indian tribes may result in the termination of employ- cations from law enforcement agencies hav- on the basis of a competition conducted pur- ment for police officers funded under sub- ing jurisdiction over areas with populations suant to specific criteria. section (b)(1).’’. exceeding 150,000, no less than 50 percent (II) RULEMAKING.—The criteria under sub- (g) DEFINITIONS.— shall be allocated for grants pursuant to ap- clause (I) shall be contained in a regulation (1) CAREER LAW ENFORCEMENT OFFICER.— plications submitted by units of local gov- promulgated by the Secretary after notice Section 1709(1) of title I of the Omnibus ernment or law enforcement agencies having and public comment. Crime Control and Safe Streets Act of 1968 jurisdiction over areas with populations ex- (B) SET-ASIDE FOR RURAL STATES.— (42 U.S.C. 3796dd–8) is amended by inserting ceeding 150,000 or by public and private enti- (i) IN GENERAL.—The Secretary shall re- after ‘‘criminal laws’’ the following: ‘‘includ- ties that serve areas with populations ex- serve 5 percent of the amount appropriated ing sheriffs deputies charged with super- ceeding 150,000, and no less than 50 percent for grants pursuant to this section to be used vising offenders who are released into the shall be allocated for grants pursuant to ap- for grants to rural States. community but also engaged in local com- plications submitted by units of local gov- (ii) SELECTION OF RURAL STATES.—The Sec- munity policing efforts.’’. ernment or law enforcement agencies having retary shall award grants under this sub- (2) SCHOOL RESOURCE OFFICER.—Section jurisdiction over areas with populations less paragraph to rural States (as defined in sec- 1709(4) of title I of the Omnibus Crime Con- than 150,000 or by public and private entities tion 1501(b) of the Omnibus Crime Control trol and Safe Streets Act of 1968 (42 U.S.C. that serve areas with populations less than and Safe Streets Act of 1968 (42 U.S.C. 3796dd–8) is amended— 150,000.’’; 3796bb(b))). (A) by striking subparagraph (A) and in- (D) by striking ‘‘85 percent’’ and inserting (C) MINIMUM AMOUNT.—The Secretary shall serting the following: ‘‘$600,000,000’’; and ‘‘(A) to serve as a law enforcement liaison (E) by striking ‘‘1701(b),’’ and all that fol- allocate, from the total amount appropriated with other Federal, State, and local law en- lows through ‘‘of part Q’’ and inserting the for grants to States under this subsection— forcement and regulatory agencies, to ad- following: ‘‘1701 (b) and (c), $350,000,000 to (i) not less than 0.75 percent for each State; dress and document crime and disorder prob- grants for the purposes specified in section and lems including gangs and drug activities, 1701(e), and $200,000,000 to grants for the pur- (ii) not less than 0.25 percent for American firearms and explosives-related incidents, poses specified in section 1701(f).’’. Samoa, Guam, the Northern Mariana Is- and the illegal use and possession of alcohol SEC. 334. FIRST RESPONDERS ANTI-TERRORISM lands, and the United States Virgin Islands, affecting or occurring in or around an ele- PARTNERSHIP. respectively. mentary or secondary school;’’; (a) DEFINITIONS.—In this section: (D) ALLOCATION TO METROPOLITAN CITIES (B) by striking subparagraph (E) and in- (1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ AND URBAN COUNTIES.—The balance of the serting the following: has the same meaning as in section 4(e) of total amount appropriated for grants to ‘‘(E) to train students in conflict resolu- the Indian Self-Determination and Edu- States under this subsection after alloca- tion, restorative justice, and crime aware- cation Assistance Act (25 U.S.C. 450b(e)). tions have been made to Indian tribes, rural ness, and to provide assistance to and coordi- (2) LAW ENFORCEMENT OFFICER.—The term States, and the minimum amount to each nate with other officers, mental health pro- ‘‘law enforcement officer’’ means any officer, State pursuant to subparagraphs (A) through

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(V) PROXIMITY TO INTERNATIONAL BORDER.— (E) COMPUTATION OF AMOUNT ALLOCATED TO (VI) PROXIMITY TO DISASTER MEDICAL AS- If an urban county is located within 50 miles METROPOLITAN CITIES.— SISTANCE TEAM.—If a metropolitan city is lo- of an international border, the ratio under (i) COMPUTATION RATIOS.—The Secretary cated within 50 miles of a DMAT, as orga- clause (i)(V) shall be 1 divided by the total shall determine the amount to be allocated nized by the National Disaster Medical Sys- number of urban counties that are located to each metropolitan city, which shall bear tem, the ratio under clause (i)(VI) shall be 1 within 50 miles of an international border. the same ratio to the allocation for all met- divided by the total number of metropolitan (VI) PROXIMITY TO DISASTER MEDICAL AS- ropolitan cities as the weighted average of— cities that are located within 50 miles of a SISTANCE TEAM.—If an urban county is lo- (I) the population of the metropolitan city DMAT. cated within 50 miles of a DMAT, as orga- divided by the population of all metropolitan (F) COMPUTATION OF AMOUNT ALLOCATED TO nized by the National Disaster Medical Sys- cities; URBAN COUNTIES.— tem, the ratio under clause (i)(VI) shall be 1 (II) the potential chemical security risk of (i) COMPUTATION RATIOS.—The Secretary the metropolitan city divided by the poten- divided by the total number of urban coun- shall determine the amount to be allocated ties that are located within 50 miles of a tial chemical security risk of all metropoli- to each urban county, which shall bear the tan cities; DMAT. same ratio to the allocation for all urban (G) EXCLUSIONS.— (III) the proximity of the metropolitan city counties as the weighted average of— to the nearest operating nuclear power plant (i) IN GENERAL.—In computing amounts or (I) the population of the urban county di- compared to the proximity of all metropoli- exclusions under subparagraph (F) with re- vided by the population of all urban coun- tan cities to the nearest operating nuclear spect to any urban county, units of general ties; power plant to each such city; local government located in the county shall (II) the potential chemical security risk of (IV) the proximity of the metropolitan cit- be excluded if the populations of such units the urban county divided by the potential ies to the nearest United States land or are not counted to determine the eligibility chemical security risk of all urban counties; water port compared with the proximity of of the urban county to receive a grant under (III) the proximity of the urban county to all metropolitan cities to the nearest United this paragraph. the nearest operating nuclear power plant States land or water port to each such city; (ii) INDEPENDENT CITIES.— compared to the proximity of all urban coun- (V) the proximity of the metropolitan city (I) IN GENERAL.—In computing amounts to the nearest international border compared ties to the nearest operating nuclear power plant to each such county; under clause (i), there shall be included any with the proximity of all metropolitan cities independent city (as defined by the Bureau of to the nearest international border to each (IV) the proximity of the urban counties to the nearest United States land or water port the Census) which— such city; and (aa) is not part of any county; (VI) the proximity of the metropolitan city compared with the proximity of all urban counties to the nearest United States land or (bb) is not eligible for a grant; to the nearest Disaster Medical Assistance (cc) is contiguous to the urban county; Team (referred to in this subsection as water port to each such county; (V) the proximity of the urban county to (dd) has entered into cooperation agree- ‘‘DMAT’’) compared with the proximity of ments with the urban county which provide all metropolitan cities to the nearest DMAT the nearest international border compared that the urban county is to undertake or to to each such city. with the proximity of all urban counties to assist in the undertaking of essential com- (ii) CLARIFICATION OF COMPUTATION RA- the nearest international border to each munity development and housing assistance TIOS.— such county; and activities with respect to such independent (I) RELATIVE WEIGHT OF FACTOR.—In deter- (VI) the proximity of the urban county to mining the average of the ratios under the nearest Disaster Medical Assistance city; and clause (i), the ratio involving population Team compared with the proximity of all (ee) is not included as a part of any other shall constitute 50 percent of the formula in urban counties to the nearest DMAT to each unit of general local government for pur- calculating the allocation and the remaining such county. poses of this section. factors shall be equally weighted. (ii) CLARIFICATION OF COMPUTATION RA- (II) LIMITATION.—Any independent city (II) POTENTIAL CHEMICAL SECURITY RISK.—If TIOS.— that is included in the computation under a metropolitan city is within the vulnerable (I) RELATIVE WEIGHT OF FACTOR.—In deter- subclause (I) shall not be eligible to receive zone of a worst-case chemical release (as mining the average of the ratios under assistance under this paragraph for the fiscal specified in the most recent risk manage- clause (i), the ratio involving population year for which such computation is used to ment plans filed with the Environmental shall constitute 50 percent of the formula in allocate such assistance. Protection Agency, or another instrument calculating the allocation and the remaining (H) INCLUSION.— developed by the Environmental Protection factors shall be equally weighted. (i) LOCAL GOVERNMENT STRADDLING COUNTY Agency or the Homeland Security Depart- (II) POTENTIAL CHEMICAL SECURITY RISK.—If LINE.—In computing amounts or exclusions ment that captures the same information for an urban county is within the vulnerable under subparagraph (F) with respect to any the same facilities), the ratio under clause zone of a worst-case chemical release (as urban county, all of the area of any unit of (i)(II) shall be 1 divided by the total number specified in the most recent risk manage- local government shall be included, which is of metropolitan cities that are within such a ment plans filed with the Environmental part of, but is not located entirely within the zone. Protection Agency, or another instrument boundaries of, such urban county if— (III) PROXIMITY AS IT PERTAINS TO NUCLEAR developed by the Environmental Protection (I) the part of such unit of local govern- SECURITY.—If a metropolitan city is located Agency or the Homeland Security Depart- ment that is within the boundaries of such within 50 miles of an operating nuclear ment that captures the same information for urban county would otherwise be included in power plant (as identified by the Nuclear the same facilities), the ratio under clause computing the amount for such urban coun- Regulatory Commission), the ratio under (i)(II) shall be 1 divided by the total number ty under this subsection; and clause (i)(III) shall be 1 divided by the total of urban counties that are within such a (II) the part of such unit of local govern- number of metropolitan cities, not to exceed zone. ment that is not within the boundaries of 100, which are located within 50 miles of an (III) PROXIMITY AS IT PERTAINS TO NUCLEAR such urban county is not included as a part operating nuclear power plant. SECURITY.—If an urban county is located of any other unit of local government for the (IV) PROXIMITY AS IT PERTAINS TO PORT SE- within 50 miles of an operating nuclear purpose of this subsection. CURITY.—If a metropolitan city is located power plant (as identified by the Nuclear within 50 miles of 1 of the 100 largest United Regulatory Commission), the ratio under (ii) USE OF GRANT FUNDS OUTSIDE URBAN States ports (as stated by the Department of clause (i)(III) shall be 1 divided by the total COUNTY.—Any amount received under this Transportation, Bureau of Transportation number of urban counties, not to exceed 100, section by an urban county described under Statistics, United States Port Report by All which are located within 50 miles of an oper- clause (i) may be used with respect to the Land Modes), or within 50 miles of 1 of the 30 ating nuclear power plant. part of such unit of local government that is largest United States water ports by metric (IV) PROXIMITY AS IT PERTAINS TO PORT SE- outside the boundaries of such urban county. tons and value (as stated by the Department CURITY.—If an urban county is located within (I) POPULATION.— of Transportation, Maritime Administration, 50 miles of 1 of the 100 largest United States (i) EFFECT OF CONSOLIDATION.—Where data United States Foreign Waterborne Transpor- ports (as stated by the Department of Trans- are available, the amount to be allocated to tation Statistics), the ratio under clause portation, Bureau of Transportation Statis- a metropolitan city that has been formed by (i)(IV) shall be 1 divided by the total number tics, United States Port Report by All Land the consolidation of 1 or more metropolitan of metropolitan cities that are located with- Modes), or within 50 miles of 1 of the 30 larg- cities within an urban county shall be equal in 50 miles of a United States land or water est United States water ports by metric tons to the sum of the amounts that would have port. and value (as stated by the Department of been allocated to the urban county or cities (V) PROXIMITY TO INTERNATIONAL BORDER.— Transportation, Maritime Administration, and the balance of the consolidated govern- If a metropolitan city is located within 50 United States Foreign Waterborne Transpor- ment if such consolidation had not occurred. miles of an international border, the ratio tation Statistics), the ratio under clause (ii) LIMITATION.—Clause (i) shall apply only under clause (i)(V) shall be 1 divided by the (i)(IV) shall be 1 divided by the total number to a consolidation that—

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(I) included all metropolitan cities that re- (b) SCHEDULE OF REPORTS.—The Comp- ‘‘(A) $1,000,000; or ceived grants under this section for the fiscal troller General shall submit to Congress an ‘‘(B) if such person derives profits or other year preceding such consolidation and that initial report under subsection (a) not later proceeds from the offense, not more than were located within the urban county; than 1 year after the date of enactment of twice the gross profits or other proceeds. (II) included the entire urban county that this Act and a second report not later than ‘‘(b) EXTRATERRITORIAL JURISDICTION.— received a grant under this section for the 1 year after the date on which the initial re- There is extraterritorial Federal jurisdiction fiscal year preceding such consolidation; and port is submitted. over an offense under this section. (III) took place on or after January 1, 2005. SEC. 402. PROHIBITION ON WAR PROFITEERING. ‘‘(c) VENUE.—A prosecution for an offense (iii) GROWTH RATE.—The population growth (a) FINDINGS.—Congress makes the fol- under this section may be brought— rate of all metropolitan cities defined in this lowing findings: ‘‘(1) as authorized by chapter 211 of this section shall be based on the population of (1) War profiteering, the overcharging of title; metropolitan cities other than consolidated taxpayers for any good or service with the ‘‘(2) in any district where any act in fur- governments the grant for which is deter- specific intent to excessively profit from a therance of the offense took place; or mined under this paragraph and cities that conflict or reconstruction situation, not only ‘‘(3) in any district where any party to the were metropolitan cities before their incor- defrauds taxpayers in the United States, but contract or provider of goods or services is poration into consolidated governments. also threatens the safety of United States located.’’. (4) MAXIMUM AMOUNT PER GRANTEE.— troops in harms way by hindering recon- (2) TABLE OF SECTIONS.—The table of sec- (A) IN GENERAL.—A qualifying State, unit struction progress, damaging the credibility tions for chapter 47 of title 18, United States of local government, or Indian tribe may not of the United States, and wasting resources Code, is amended by adding at the end the receive more than 5 percent of the total that could be used for troop protection. following: amount appropriated for grants under this (2) Laws prohibiting fraud protect against ‘‘1038. War profiteering and fraud relating to section. waste of tax dollars within the United military action, relief, and re- (B) AGGREGATE AMOUNT PER STATE.—A States, but no current fraud statute ex- construction efforts.’’. State, together with the grantees within the pressly prohibits waste of tax dollars result- State, may not receive more than 20 percent ing from war profiteering during conflicts in (c) CIVIL FORFEITURE.—Section 981(a)(1)(C) of the total amount appropriated for grants foreign countries. of title 18, United States Code, is amended by under this section. (3) War profiteers have hindered United inserting ‘‘1038,’’ after ‘‘1032,’’. (5) MATCHING FUNDS.— States efforts to secure and reconstruct Iraq. (d) CRIMINAL FORFEITURE.—Section (A) IN GENERAL.—The portion of the costs In its third quarterly report, the Coalition 982(a)(2)(B) of title 18, United States Code, is of a program provided by a grant under para- Provisional Authority Inspector General re- amended by striking ‘‘or 1030’’ and inserting graph (1) may not exceed 90 percent. ported that, as of October 12, 2004, it had re- ‘‘1030, or 1038’’. (B) WAIVER.—If the Secretary determines ceived a total of 113 potential criminal cases. (e) MONEY LAUNDERING.—Section that a grantee is experiencing fiscal hard- (4) In nine separate reports, the Defense ship, the Secretary may waive, in whole or 1956(c)(7)(D) of title 18, United States Code, is Contract Audit Agency, the Coalition Provi- amended by inserting ‘‘section 1038 (relating in part, the matching requirement under sional Authority Inspector General, and the subparagraph (A). to war profiteering and fraud relating to Government Accountability Office have military action, relief, and reconstruction (C) EXCEPTION.—Any funds appropriated by found widespread, systematic abuses by the Congress for the activities of any agency of efforts),’’ after ‘‘liquidating agent of finan- Halliburton Company and its subsidiaries, cial institution),’’. an Indian tribal government or the Bureau of including instances of overcharging worth (f) RELATIONSHIP TO EXISTING LAW.—This Indian Affairs performing law enforcement tens of millions of dollars, fraudulent ac- section shall not limit or repeal any addi- functions on any Indian lands may be used to counting practices, and kickbacks. Con- tional authorities provided by law. provide the non-Federal share of a matching tracts awarded to Custer Battles, LLC, were requirement under subparagraph (A). suspended by the Department of Defense (g) EFFECTIVE DATE OF AMENDMENTS.—The (c) APPLICATIONS.— after it uncovered fraudulent billing prac- amendments made by this section shall be (1) IN GENERAL.—To request a grant under tices including the establishment of phan- effective during the 7-year period beginning this section, the chief executive of a State, tom off-shore corporations. Government in- on the date of enactment of this Act. unit of local government, or Indian tribe vestigators have found contract irregular- shall submit an application to the Secretary ities, including lack of transparency and By Mr. AKAKA (for himself, Mr. in such form and containing such informa- poor accounting, in contracts awarded to REID, Ms. MIKULSKI, Ms. tion as the Secretary may reasonably re- other firms. quire. STABENOW, Mr. INOUYE, Mr. (b) PROHIBITION OF PROFITEERING.— (2) REGULATIONS.—Not later than 90 days DORGAN, Mr. LAUTENBERG, Mr. (1) PROHIBITION.— after the date of enactment of this Act, the LEAHY, Mr. SALAZAR, Mr. (A) IN GENERAL.—Chapter 47 of title 18, Secretary shall promulgate regulations to United States Code, is amended by adding at ROCKEFELLER, Mrs. MURRAY, implement this subsection (including the in- the end the following new section: Mr. BINGAMAN, Mrs. FEINSTEIN, formation that must be included and the re- Mr. DURBIN, Mr. KENNEDY, Mr. ‘‘§ 1038. War profiteering and fraud relating quirements that the States, units of local CORZINE, Mr. PRYOR, Mr. SCHU- government, and Indian tribes must meet) in to military action, relief, and reconstruc- MER, Mr. SARBANES, and Mr. submitting the applications required under tion efforts AYTON this subsection. ‘‘(a) PROHIBITION.— D ): (d) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(1) IN GENERAL.—Whoever, in any matter S. 13. A bill to amend titles 10 and 38, There are authorized to be appropriated involving a contract or the provision of United States Code, to expand and en- $5,000,000,000 for fiscal year 2006 to carry out goods or services, directly or indirectly, in hance health care, mental health, tran- this section. connection with the war, military action, or sition, and disability benefits for vet- TITLE IV—PROTECTING TAXPAYERS relief or reconstruction activities, know- erans, and for other purposes; to the ingly and willfully— SEC. 401. REPORTS ON METRICS FOR MEASURING Committee on Veterans’ Affairs. SUCCESS IN GLOBAL WAR ON TER- ‘‘(A) executes or attempts to execute a RORISM. scheme or artifice to defraud the United Mr. AKAKA. Mr. President, I rise (a) REQUIREMENT FOR REPORTS.—The States; today to introduce a bill that would Comptroller General of the United States ‘‘(B) falsifies, conceals, or covers up by any make sweeping changes to the way the shall submit to Congress reports on the trick, scheme, or device a material fact; Department of Veterans Affairs (VA) metrics for use in tracking and measuring ‘‘(C) makes any materially false, fictitious, delivers health care and benefits to our acts of global terrorism, international or fraudulent statements or representations, or makes or uses any materially false writ- nation’s veterans. S. 13 would, among counterterrorism efforts, and the success of other things, guarantee full funding for United States counterterrorism policies and ing or document knowing the same to con- practices including specific, replicable defi- tain any materially false, fictitious, or VA health care, provide for full concur- nitions, criteria, and standards of measure- fraudulent statement or entry; or rent receipt, enhance mental health ment to be used for the following: ‘‘(D) materially overvalues any good or care services, and ease the transition (A) Counting and categorizing acts of service with the specific intent to exces- from military service to civilian life. international terrorism. sively profit from the war, military action, or relief or reconstruction activities; This bill would mean that the 115,000 (B) Monitoring counterterrorism efforts of veterans who choose to make Hawaii foreign governments. shall be fined under paragraph (2), impris- (C) Monitoring financial support provided oned not more than 20 years, or both. their home would be assured the serv- to terrorist groups. ‘‘(2) FINE.—A person convicted of an of- ices they have earned. The nearly 18,000 (D) Assessing the success of United States fense under paragraph (1) may be fined the veterans who avail themselves of VA counterterrorism policies and practices. greater of— health care in Honolulu, Hawaii,

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00062 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S169 Kauai, and Maui would not have to Our disabled military retirees de- gram for servicemembers who partici- worry if resources for doctors and serve to receive the retirement pay pated in or were eligible to participate nurses will materialize next year. that they earned and be compensated in the post-Vietnam era educational And because so many of our reserv- for their service-connected disabilities. assistance program, known as VEAP. ists and Guardsmen are being deployed Our young people will wear the uni- This bill would create a 1-year window for the current wars in Iraq and Af- forms of our Armed Forces only if they and requires the individual to pay ghanistan, this bill will help ensure believe that their service is appre- $2,700, which was the VEAP contribu- they get the care they need upon their ciated and compensated accordingly. tion. return. Along those lines, S. 13 also seeks to Last year, Congress extended the pe- Every year the President sends for- ensure that veterans and returning riod of eligibility for education bene- ward his budget proposal to Congress, service members can receive the men- fits for survivors of servicemembers and every year we go through the same tal health care they might need as a re- who were killed during active duty. We battles to get VA health care the sult of their service. The legislation re- would like to further extend this de- money it needs to adequately serve its quires that VA employ at least one limiting date for veterans and other de- veteran patients. The time has come to psychiatrist and treatment team at pendents. The 10-year period of eligi- approach this process more rationally. each medical center that does not cur- bility would not begin to toll until This legislation would ensure full fund- rently have one. This legislation would they began to use the benefit, rather ing for VA health care by simply also mandate that VA carry out a com- than when they became eligible for the changing the way funds are allocated. munity outreach program to let Oper- benefit. To be perfectly clear, this bill merely ation Iraqi Freedom and Operation En- Overall, this is a bill to spur dialogue shifts money already being allocated during Freedom veterans know about started on the issues that are truly im- over to a more reliable mechanism. the services available to them at VA. portant to our Nation’s veterans. The American Legion, the Disabled Why is good VA mental health care We all need to work harder towards American Veterans, and the Veterans so important? the goal of seeing that the promises of Foreign Wars support this approach Because so often battle wounds do made to the men and women who are to fully fund the veterans health care not manifest in physical illness, but in serving today are met; that their sac- system. quiet and equally debilitating mental rifices were not in vain. These three organizations—rep- illness. These wounds are revealed as I ask unanimous consent that the resenting more than 7 million military post-traumatic stress disorder with ef- text of the bill be printed in the veterans—rightly believe that veterans fects that linger and symptoms that RECORD. have earned the right to VA medical can be brought on years after combat. There being no objection, the bill was care through their ‘‘extraordinary sac- While hypertension and heart disease ordered to be printed in the RECORD, as rifices and service to this Nation.’’ afflict vast numbers of veterans, men- follows: We have seen huge numbers of vet- tal illness is not far behind. It might S. 13 erans seeking VA care for the first surprise some of my colleagues to Be it enacted by the Senate and House of Rep- time. I, for one, believe this is a good know that cancer and depression affect resentatives of the United States of America in thing. Others rationalize that as we are roughly the same number of veterans. Congress assembled, at war, we must cut back on VA care. But is VA reaching and treating all SECTION 1. SHORT TITLE. I simply do not understand this logic. veterans who need care? This remains This Act may be cited as the ‘‘Fulfilling We are at war, and therefore we must very much an open question. Our Duty to America’s Veterans Act of 2005’’. do everything we can to show our mili- This legislation also seeks to im- TITLE I—HEALTH CARE MATTERS tary that VA health care will be there prove access to needed prescription SEC. 100. FINDINGS. for all veterans who served. To accom- drugs. Many veterans have expressed Congress makes the following findings: plish this goal, we must change the their desire to bring prescriptions from (1) The three largest veterans advocacy way VA health care is funded. their Medicare doctors to VA phar- groups, the Disabled American Veterans, the Although we have continued to make macies to get them filled. Current VA American Legion, and the Veterans of For- policy requires that nearly all veterans eign Wars, have called upon Congress to progress on eliminating the long-stand- change veterans funding to a mandatory ing injustice that has affected our dis- see a VA doctor before such prescrip- tions are issued. This does not make process, stating, ‘‘We believe it is time to abled retired veterans’ retirement pay, guarantee health care funding for all vet- we still have work to do. sense. erans. We believe health care rationing must S. 13 will correct this unfairness by The Department’s inspector general end. We believe it is time the promise is allowing all disabled military retirees testified that VA could see savings of kept.’’. to collect both their full military re- $1 billion a year if veterans were al- (2) The May 2003 report of The President’s tired and VA disability pay concur- lowed to bring their outside prescrip- Task Force To Improve Health Care Delivery tions, because it would obviate the For Our Nation’s Veterans found that ‘‘there rently. is a significant mismatch in VA between de- Most military retirees who have a need for VA to re diagnose patients and then re-issue prescriptions that have mand and available funding—an imbalance service-connected disability are not that...if unresolved, will delay veterans’ permitted to collect both their retire- already been written. S. 13 would allow access to care and could threaten the quality ment and disability benefits concur- these veterans to get their prescrip- of VA health care.’’. rently. Military retired pay is the tions filled by VA at prices that are far (3) Under the current funding process, the promised reward for 20 or more years of better than in the private sector. VA has experienced billion-dollar shortfalls uniformed service and is based on This legislation also seeks to help every year for the past several years, result- ing in waiting lists several months long for length of service. VA disability com- veterans with their education. S. 13 would exclude MGIB benefits from appointments with physicians, a substantial pensation is unrelated to length of disability claims backlog, and policies de- service and is intended to compensate a computation as income when calcu- lating campus based aid, such as Per- signed to prevent veterans from obtaining veteran for a service-connected loss of the health care they were promised. kins loans. This draws the distinction function. Subtitle A—Funding Matters In order to continue to recruit and between a benefit that has been earned, and paid for, by the veterans, and other SEC. 101. FUNDING TO ADDRESS CHANGES IN retain quality soldiers, sailors, airmen POPULATION AND INFLATION. types of income. This allows the indi- and marines, we must pay attention (a) IN GENERAL.—Chapter 17 of title 38, not only to the present, but also to the vidual applying for financial aid to United States Code, is amended by inserting future. George Washington said: subtract $1,200 from the expected fam- after section 1706 the following new section: ily contribution for 1 year. This $1,200 The willingness with which our young peo- ‘‘§ 1706A. Management of health care: funding ple are likely to serve in any war, no matter represents the money that the indi- to address changes in population and infla- how justified, shall be directly proportional vidual paid to participate in the MGIB tion to how they perceive the Veterans of earlier program. ‘‘(a) By the enactment of this section, Con- wars were treated and appreciated by their S. 13 also offers an opportunity for gress and the President intend to ensure ac- nation. enrollment in the MGIB education pro- cess to health care for all veterans. Upon the

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The dis- available pursuant to subsection (b) shall be introduced in the House of Representatives cretionary amount should be equal to the fis- all programs, functions, and activities of the by the Speaker of the House of Representa- cal year 2005 discretionary funding for such Veterans Health Administration. tives (or the Speaker’s designee) or the Mi- programs, functions, and activities, and ‘‘(2) Amounts made available pursuant to nority Leader (or the Minority Leader’s des- should remain unchanged each fiscal year subsection (b) are not available for— ignee), or in the Senate by the Majority thereafter. The annual level of mandatory ‘‘(A) construction, acquisition, or alter- Leader (or the Majority Leader’s designee) or amount shall be adjusted according to the ation of medical facilities as provided in sub- the Minority Leader (or the Minority Lead- formula specified in subsection (c). While chapter I of chapter 81 of this title (other er’s designee), within the 10-day period be- this section does not purport to control the than for such repairs as were provided for be- ginning on the date on which Congress re- outcome of the annual appropriations proc- fore the date of the enactment of this section ceives the report of the Comptroller General ess, it anticipates cooperation from Congress through the Medical Care appropriation for of the United States under section 102, and— and the President in sustaining discre- the Department); or (1) that does not have a preamble; tionary funding for such programs, func- ‘‘(B) grants under subchapter III of chapter (2) the matter after the resolving clause of which consists of amendments of title 38, tions, and activities in future fiscal years at 81 of this title. the level of discretionary funding for such ‘‘(e) Nothing in this section shall be con- United States Code, or other amendments or modifications of laws administered by the programs, functions, and activities for fiscal strued to prevent or limit the authority of year 2005. The success of that arrangement, Secretary of Veterans Affairs to implement Congress to reauthorize provisions relating as well as of the funding formula, are to be the recommendations of the Comptroller to veterans health care.’’. reviewed after two years. General in the report under section 102(b)(6); (b) CLERICAL AMENDMENT.—The table of ‘‘(b) On the first day of each fiscal year, and sections at the beginning of such chapter is the Secretary of the Treasury shall make (3) the title of which is as follows: ‘‘Joint amended by adding at the end the following available to the Secretary of Veterans Af- resolution to ensure adequate funding of new item: fairs the amount determined under sub- health care for veterans.’’. section (c) with respect to that fiscal year. ‘‘1706A. Management of health care: funding (c) REFERRAL.—A joint resolution de- Each such amount is available, without fis- to address changes in popu- scribed in subsection (b) that is introduced cal year limitation, for the programs, func- lation and inflation.’’. in the House of Representatives shall be re- tions, and activities of the Veterans Health SEC. 102. COMPTROLLER GENERAL REPORT. ferred to the Committee on Veterans’ Affairs Administration specified in subsection (d). (a) REQUIREMENT FOR REPORT.—Not later of the House of Representatives. A joint res- There is hereby appropriated, out of any than January 31, 2008, the Comptroller Gen- olution described in subsection (b) intro- sums in the Treasury not otherwise appro- eral of the United States shall submit to duced in the Senate shall be referred to the priated, amounts necessary to implement Congress a report on the extent to which sec- Committee on Veterans’ Affairs of the Sen- this section. tion 1706A of title 38, United States Code (as ate. ‘‘(c)(1) The amount applicable to fiscal added by section 101 of this Act), has (d) DISCHARGE.—If the committee to which year 2006 under this subsection is the amount achieved the objective set forth in sub- a joint resolution described in subsection (b) equal to— section (a) of such section 1706A during fiscal is referred has not reported such resolution ‘‘(A) 130 percent of the amount obligated years 2006 and 2007. (or an identical resolution) by the end of the by the Department during fiscal year 2004 for 20-day period beginning on the date on which (b) CONTENT.—The report under subsection the purposes specified in subsection (d); (a) shall set forth the following: the Comptroller General submits to Congress minus the report under section 102, such committee (1) The amount appropriated for fiscal year ‘‘(B) the amount appropriated for those shall be, at the end of such period, dis- 2005 for the programs, functions, and activi- purposes for fiscal year 2005. charged from further consideration of such ties of the Veterans Health Administration ‘‘(2) The amount applicable to any fiscal resolution, and such resolution shall be specified in subsection (d) of section 1706A of year after fiscal year 2006 under this sub- placed on the appropriate calendar of the section is the amount equal to the product of title 38, United States Code (as so added). House involved. the following, minus the amount appro- (2) The amount appropriated by annual ap- (e) CONSIDERATION.— priated for the purposes specified for sub- propriations Acts for each of fiscal years 2006 (1) MOTION TO PROCEED TO CONSIDERATION.— section (d) for fiscal year 2005: and 2007 for such programs, functions, and On or after the third day after the date on ‘‘(A) The sum of— activities. which the committee to which such a joint ‘‘(i) the number of veterans enrolled in the (3) The amount provided by section 1706A resolution is referred has reported, or has Department health care system under sec- of title 38, United States Code (as so added), been discharged (under subsection (d)) from tion 1705 of this title as of July 1 preceding for each of fiscal years 2006 and 2007 for such further consideration of, such a resolution, it the beginning of such fiscal year; and programs, functions, and activities. is in order (even though a previous motion to ‘‘(ii) the number of persons eligible for (4) An assessment whether the amount de- the same effect has been disagreed to) for health care under chapter 17 of this title who scribed in paragraph (3) for each of fiscal any Member of the respective House to move are not covered by clause (i) and who were years 2006 and 2007 was appropriate to ad- to proceed to the consideration of the resolu- provided hospital care or medical services dress the changes in costs to the Veterans tion (but only on the day after the calendar under such chapter at any time during the Health Administration for such programs, day on which such Member announces to the fiscal year preceding such fiscal year. functions, and activities that were attrib- House concerned the Member’s intention to ‘‘(B) The per capita baseline amount, as in- utable to changes in population and in infla- do so). The motion is highly privileged in the creased from time to time pursuant to para- tion over the course of such fiscal years. House of Representatives and is privileged in graph (3)(B). (5) An assessment whether the amount pro- the Senate and is not debatable. The motion ‘‘(3)(A) For purposes of paragraph (2)(B), vided by section 1706A of title 38, United is not subject to amendment, or to a motion the term ‘per capita baseline amount’ means States Code (as so added), in each of fiscal to postpone, or to a motion to proceed to the the amount equal to— years 2006 and 2007, when combined with consideration of other business. A motion to ‘‘(i) the amount obligated by the Depart- amounts appropriated by annual appropria- reconsider the vote by which the motion is ment during fiscal year 2005 for the purposes tions Acts for each of such fiscal years for agreed to or disagreed to shall not be in specified in subsection (d); divided by such programs, functions, and activities, order. If a motion to proceed to the consider- ‘‘(ii) the number of veterans enrolled in the provided adequate funding of such programs, ation of the resolution is agreed to, the re- Department health care system under sec- functions, and activities in each such fiscal spective House shall immediately proceed to tion 1705 of this title as of September 30, year. consideration of the joint resolution without 2004. (6) Such recommendations as the Comp- intervening motion, order, or other business, ‘‘(B) With respect to any fiscal year, the troller General considers appropriate regard- and the resolution shall remain the unfin- Secretary shall provide a percentage in- ing modifications of the formula under sub- ished business of the respective House until crease (rounded to the nearest dollar) in the section (c) of section 1706A of title 38, United disposed of. per capita baseline amount equal to the per- States Code (as so added), or any other modi- (2) DEBATE.—Debate on the resolution, and centage by which— fications of law, to better ensure adequate on all debatable motions and appeals in con- ‘‘(i) the Consumer Price Index (all Urban funding of such programs, functions, and ac- nection therewith, shall be limited to not Consumers, United States City Average, Hos- tivities. more than 2 hours, which shall be divided pital and related services, Seasonally Ad- SEC. 103. CONGRESSIONAL CONSIDERATION OF equally between those favoring and those op- justed), published by the Bureau of Labor COMPTROLLER GENERAL REC- posing the resolution. An amendment to the Statistics of the Department of Labor for the OMMENDATIONS. resolution is not in order. A motion further 12-month period ending on the June 30 pre- (a) APPLICABLE PROCEDURE.—The proce- to limit debate is in order and not debatable. ceding the beginning of the fiscal year for dure provided under this section shall apply A motion to postpone, or a motion to pro- which the increase is made; exceeds to consideration of a joint resolution de- ceed to the consideration of other business,

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00064 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S171 or a motion to recommit the resolution is SEC. 112. POST-TRAUMATIC STRESS DISORDER (3) In 2004, the Department of Justice, in a not in order. A motion to reconsider the vote TREATMENT FOR VETERANS OF reversal of an earlier legal opinion, stating by which the resolution is agreed to or dis- SERVICE IN AFGHANISTAN AND that the Secretary of Veterans Affairs has IRAQ AND THE WAR ON TERROR. agreed to is not in order. the authority to eliminate this rule without (a) ENHANCED CAPACITY FOR DEPARTMENT (3) VOTE ON FINAL PASSAGE.—Immediately further legislative action. The Secretary has OF VETERANS AFFAIRS.—Using funds avail- following the conclusion of the debate on a able to the Secretary of Veterans Affairs for failed to take such a step, thus necessitating joint resolution described in subsection (b) fiscal year 2006 for ‘‘Medical Care’’, the Sec- action by Congress. (b) AUTHORITY.—Section 1712 of title 38, and a single quorum call at the conclusion of retary shall employ at least one psychiatrist United States Code, is amended— the debate if requested in accordance with and a complementary clinical team at each the rules of the appropriate House, the vote medical center of the Department of Vet- (1) by redesignating subsection (e) as sub- on final passage of the resolution shall erans Affairs in order to conduct a special- section (f); and occur. ized program for the diagnosis and treatment (2) by inserting after subsection (d) the fol- (4) APPEALS FROM DECISIONS OF THE of post-traumatic stress disorder and to em- lowing new subsection (e): CHAIR.—Appeals from the decisions of the ploy additional mental health services spe- ‘‘(e)(1) The Secretary shall furnish to any Chair relating to the application of the rules cialists at the medical center. medicare-eligible veteran on an out-patient of the Senate or the House of Representa- (b) OUTREACH AT THE COMMUNITY LEVEL.— basis such drugs and medicines as may be or- tives, as the case may be, to the procedure (1) PROGRAM.—The Secretary of Veterans dered on prescription of a duly licensed phy- relating to a joint resolution described in Affairs shall, within the authorities of the sician as specific therapy in the treatment of subsection (b) shall be decided without de- Secretary under title 38, United States Code, any illness or injury suffered by such vet- bate. carry out a program to provide outreach at eran. ‘‘(2) In this subsection, the term ‘medicare- (f) CONSIDERATION BY OTHER HOUSE.— the community level to veterans who par- ticipated in Operation Iraqi Freedom or Op- eligible veteran’ means any veteran who— (1) PROCEDURE.—If, before the passage by ‘‘(A) is entitled to or enrolled in hospital one House of a joint resolution of that House eration Enduring Freedom who are or may be suffering from post-traumatic stress dis- insurance benefits under part A of title described in subsection (b), that House re- XVIII of the Social Security Act (42 U.S.C. ceives from the other House a joint resolu- order. (2) PROGRAM SITES.—The program shall be 1395 et seq.); or tion described in subsection (b), then the fol- ‘‘(B) is enrolled in the supplementary med- lowing procedures shall apply: carried out on a nation-wide basis through facilities of the Department of Veterans Af- ical insurance program under part B of such (A) The resolution of the other House shall title (42 U.S.C. 1395j et seq.). not be referred to a committee and may not fairs. (3) PROGRAM CONTENT.—The program shall ‘‘(3) The furnishing of drugs and medicines be considered in the House receiving it ex- under this subsection shall be subject to the cept in the case of final passage as provided provide for individualized case management to be conducted on a one-on-one basis, coun- provisions of section 1722A(b) of this title.’’. in subparagraph (B)(ii). OPAYMENT REQUIREMENTS.— seling, education, and group therapy to help (c) C (B) With respect to a joint resolution de- (1) IN GENERAL.—Section 1722A of such title participants cope with post-traumatic stress scribed in subsection (b) of the House receiv- is amended— disorder. The program— ing the resolution— (A) in subsection (a)(1), by inserting (A) shall emphasize early identification of (i) the procedure in that House shall be the ‘‘(other than a veteran covered by subsection veterans who may be experiencing symptoms same as if no resolution had been received (b))’’ after ‘‘require a veteran’’; of post-traumatic stress disorder; and from the other House; but (B) by redesignating subsections (b) and (c) (B) shall include group-oriented, peer-to- (ii) the vote on final passage shall be on as subsections (c) and (d), respectively; peer settings for treatment. the resolution of the other House. (C) by inserting after subsection (a) the fol- (2) DISPOSITION.—Upon disposition of the SEC. 113. ARMED FORCES REVIEW OF MENTAL HEALTH PROGRAMS. lowing new subsection (b): resolution received from the other House, it ‘‘(b)(1) In the case of a veteran who is fur- (a) REVIEW OF MENTAL HEALTH PRO- shall no longer be in order to consider the nished medications on an out-patient basis resolution that originated in the receiving GRAMS.—The Secretary of each military de- partment shall conduct a comprehensive re- under section 1712(e) of this title, the Sec- House. view of the mental health care programs of retary shall require the veteran to pay, at (g) RULES OF SENATE AND HOUSE.—This sec- the Armed Forces under the jurisdiction of the election of the Secretary, one or more of tion is enacted by Congress— that Secretary in order to determine ways to the following: (1) as an exercise of the rulemaking power improve the efficacy of such care, including ‘‘(A) An annual enrollment fee in an of the Senate and House of Representatives, a review of joint Department of Defense and amount determined appropriate by the Sec- respectively, and as such it is deemed a part Department of Veterans Affairs clinical retary. of the rules of each House, respectively, but guidelines to ensure a seamless delivery of ‘‘(B) A copayment for each 30-day supply of applicable only with respect to the procedure care during transitions from active duty or such medications in an amount determined to be followed in that House in the case of a reserve status to civilian life. appropriate by the Secretary. joint resolution described in subsection (b), (b) REPORT TO CONGRESS.—The Secretary of ‘‘(C) An amount equal to the cost to the and it supersedes other rules only to the ex- Defense shall submit to Congress a report Secretary of such medications, as deter- tent that it is inconsistent with such rules; setting forth the results of such review not mined by the Secretary. and later than 90 days after the date of the enact- ‘‘(2)(A) In determining the amounts to be (2) with full recognition of the constitu- ment of this Act. paid by a veteran under paragraph (1), and tional right of either House to change the Subtitle C—Other Matters the basis of payment under one or more sub- rules (so far as relating to the procedure of SEC. 121. AUTHORITY OF DEPARTMENT OF VET- paragraphs of that paragraph, the Secretary that House) at any time, in the same man- ERANS AFFAIRS PHARMACIES TO shall ensure that the total amount paid by ner, and to the same extent as in the case of DISPENSE MEDICATIONS TO VET- veterans for medications under that para- any other rule of that House. ERANS ON PRESCRIPTIONS WRIT- graph in a year is not less than the costs of TEN BY PRIVATE PRACTITIONERS. the Department in furnishing medications to Subtitle B—Mental Health Matters (a) FINDINGS.—Congress makes the fol- veterans under section 1712(e) of this title lowing findings: during that year, including the cost of pur- SEC. 111. FINDINGS. (1) Under longstanding regulations of the chasing and furnishing medications, and Congress makes the following findings: Department of Veterans Affairs, most vet- other costs of administering that section. (1) A study published in the New England erans who receive prescriptions for medica- ‘‘(B) The Secretary shall take appropriate Journal of Medicine reported that about one tion from private doctors are forced to com- actions to ensure, to the maximum extent in six soldiers of the Iraq war displays symp- plete physicals conducted by Department of practicable, that amounts paid by veterans toms of post-traumatic stress disorder. Veterans Affairs physicians before the vet- under paragraph (1) in a year are equal to (2) Clinical experts are anticipating an in- erans can have their prescriptions filled by a the costs of the Department referred to in crease in the number of post-traumatic pharmacy. This bureaucratic red tape can subparagraph (A) in that year. stress disorder cases in light of the increas- prevent veterans from quickly receiving the ‘‘(3) In determining amounts under para- ing duration of military deployment. medical treatment they need. graph (1), the Secretary may take into ac- (3) 86 of 163 Department of Veterans Affairs (2) In December 2000, the Inspector General count the following: Medical Centers have post-traumatic stress of the Department of Veterans Affairs re- ‘‘(A) Whether or not the medications fur- disorder treatment programs. ported that eliminating this unnecessary red nished are generic medications or brand (4) Section 1706 of title 38, United States tape would save the underfunded Department name medications. Code, requires that the Secretary of Vet- of Veterans Affairs over $1,000,000,000 per ‘‘(B) Whether or not the medications are erans Affairs ensure, in accordance with that year. The report concluded that ‘‘a decision furnished by mail. section, that the Department of Veterans Af- to continue the current policies results in in- ‘‘(C) Whether or not the medications fur- fairs maintains its capacity to provide for efficiency and waste that we estimate annu- nished are listed on the National Prescrip- the specialized treatment and rehabilitative ally costs the Department over $1,000,000,000 tion Drug Formulary of the Department. needs of disabled veterans within distinct in resources that could be better used in the ‘‘(D) Any other matters the Secretary con- programs or facilities of the Department. delivery of healthcare services to veterans.’’. siders appropriate.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00065 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S172 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(4) The Secretary may from time to time tion under sections 5304 and 5305 of title 38, SEC. 302. REPORT ON DEVELOPMENT OF INTER- adjust any amount determined by the Sec- but only to the extent that the amount of OPERABLE ELECTRONIC MEDICAL retary under paragraph (1), as previously ad- the member’s retired pay under chapter 61 of RECORDS. justed under this paragraph, in order to meet this title exceeds the amount of retired pay Not later than 60 days after the date of the the purpose specified in paragraph (2).’’; and to which the member would have been enti- enactment of this Act, the Secretary of De- (D) in subsection (d), as so redesignated— tled under any other provision of law based fense and the Secretary of Veterans Affairs (i) by striking ‘‘subsection (a)’’ and insert- upon the member’s service in the uniformed shall jointly submit to Congress a report on the status of the development of interoper- ing ‘‘subsections (a) and (b)’’; and services if the member had not been retired able electronic medical records for members (ii) by striking ‘‘subsection (b)’’ and insert- under chapter 61 of this title. of the Armed Forces and veterans that are ing ‘‘subsection (c)’’. ‘‘(c) EXCEPTION.—Subsection (a) does not utilizable by both the Department of Defense (2) DEPOSIT OF COLLECTIONS IN MEDICAL apply to a member retired under chapter 61 and the Department of Veterans Affairs. CARE COLLECTIONS FUND.—Paragraph (4) of of this title with less than 20 years of service SEC. 303. EXCHANGE OF MEDICAL RECORDS FOR section 1729A(b) of such title is amended to otherwise creditable under section 1405 of this title at the time of the member’s retire- SEAMLESS TRANSITION IN THE PRO- read as follows: VISION OF HEALTHCARE SERVICES. ‘‘(4) Subsection (a) or (b) of section 1722A of ment. ‘‘(d) DEFINITIONS.—In this section: The Secretary of Health and Human Serv- this title.’’. ‘‘(1) The term ‘retired pay’ includes re- ices shall modify section 164.512(k)(1) of title (d) CLERICAL AMENDMENTS.—(1) The head- tainer pay, emergency officers’ retirement 45, Code of Federal Regulations, to provide ing for section 1712 of such title is amended pay, and naval pension. that the Department of Defense and the De- by striking ‘‘ ’’. for certain disabled veterans ‘‘(2) The term ‘veterans’ disability com- partment of Veterans Affairs may exchange (2) The table of sections at the beginning of pensation’ has the meaning given the term protected health information of members of chapter 17 of such title is amended in the ‘compensation’ in section 101(13) of title 38.’’. the Armed Forces and veterans in a manner item relating to section 1712 by striking ‘‘for (b) REPEAL OF COMBAT-RELATED SPECIAL that, as determined jointly by the Secretary certain disabled veterans’’. COMPENSATION PROGRAM.—Section 1413a of of Health and Human Services, the Secretary TITLE II—CONCURRENT RECEIPT OF RE- such title is repealed. of Defense, and the Secretary of Veterans Af- TIRED PAY AND SERVICE-CONNECTED (c) CLERICAL AMENDMENT.—The table of fairs, facilitates a seamless transition be- DISABILITY COMPENSATION sections at the beginning of chapter 71 of tween the provision of health care services such title is amended by striking the items by the Department of Defense to members of SEC. 201. SHORT TITLE. the Armed Forces and the provision of This title may be cited as the ‘‘Retired Pay relating to sections 1413a and 1414 and insert- ing the following: health care services by the Department of Restoration Act of 2005’’. ‘‘1414. Members eligible for retired pay who Veterans Affairs to veterans who require SEC. 202. FINDINGS. are also eligible for veterans’ such services after their separation or retire- Congress makes the following findings: disability compensation: pay- ment from the Armed Forces. (1) The United States Government has an ment of retired pay and vet- SEC. 304. ENHANCEMENT OF PRESEPARATION essential obligation to provide support and PHYSICAL EXAMINATION REQUIRE- erans’ disability compensa- care for men and women who have completed MENTS. tion.’’. honorable military service in defense of the Section 1145 of title 10, United States Code, Nation. In no instance is this obligation SEC. 204. EFFECTIVE DATE; PROHIBITION ON is amended— RETROACTIVE BENEFITS. more critical than for veterans who were in- (1) in subsection (a), by striking paragraph (a) IN GENERAL.—The amendments made by (4); jured or disabled during their military serv- section 202 shall take effect on— (2) by redesignating subsections (d) and (e) ice. (1) the first day of the first month that be- as subsections (e) and (f), respectively; and (2) Disability compensation and military gins after the date of the enactment of this (3) by inserting after subsection (c) the fol- retired pay are benefits earned for two dis- Act; or lowing new subsection (d): tinct reasons. Disability compensation is (2) the first day of the fiscal year that be- provided to veterans for disabilities result- ‘‘(d) PRESEPARATION PHYSICAL.—(1) The gins in the calendar year in which this Act is Secretary concerned shall require a member ing from their military service to the Nation enacted, if later than the date specified in as an expression of the Nation’s gratitude of the armed forces to be separated from ac- paragraph (1). tive duty to undergo a physical examination and as recompense for their sacrifice. Mili- (b) RETROACTIVE BENEFITS.—No benefits tary retired pay is earned by members of the before that separation. may be paid to any person by reason of sec- ‘‘(2) The physical examination of a member Armed Forces for the devotion of 20 or more tion 1414 of title 10, United States Code, as under this subsection shall be conducted be- years of their lives to the military service of amended by section 202(a), for any period be- fore the member receives preseparation the Nation. fore the effective date applicable under sub- counseling under section 1142 of this title. (3) Until 2002, Federal law prohibited dis- section (a). ‘‘(3)(A) The physical examinations con- abled veterans from concurrently receiving TITLE III—SEAMLESS TRANSITION FROM ducted under this subsection shall be com- both disability compensation and retirement MILITARY SERVICE TO VETERANS STATUS prehensive and, to the maximum extent pay. The prohibition against concurrent re- SEC. 301. FINDINGS. practicable, uniform throughout the armed ceipt was a gross violation of the Govern- Congress makes the following findings: forces. ment’s commitment to veterans. (1) In its final report, the President’s Task ‘‘(B) The purpose of a physical examination (4) Despite recent legislative advances, Force To Improve Health Care Delivery For conducted for a member under this sub- over 1,500,000 disabled veterans continue to Our Nation’s Veterans found that ‘‘... in- section shall be— be prohibited from receiving both military creased collaboration between the Depart- ‘‘(i) to determine the immediate health retirement and disability payments concur- ments [of Defense and Veterans Affairs] for care needs, if any, of the member as of sepa- rently. the transfer of personnel and health informa- ration and the ongoing health care needs, if SEC. 203. FULL PAYMENT OF BOTH RETIRED PAY tion is needed. Within VA, broader sharing of any, of the member after separation; and AND COMPENSATION TO DISABLED the information received from the DOD and ‘‘(ii) to identify any illness, injury, or MILITARY RETIREES. individual veterans is required so that vet- other medical conditions that may make the (a) RESTORATION OF FULL RETIRED PAY erans are not met at every turn with the member eligible for benefits as a veteran BENEFITS.—Section 1414 of title 10, United question, ‘Who are you and what do you under the laws administered by the Sec- States Code, is amended to read as follows: want?’ A ‘seamless transition’ from military retary of Veterans Affairs. ‘‘(C) The Secretary of Defense shall pre- ‘‘§ 1414. Members eligible for retired pay who service to veteran status is especially crit- scribe in regulations the requirements for are also eligible for veterans’ disability ical in the context of health care, where physical examinations conducted under this compensation: payment of retired pay and readily available, accurate, and current med- veterans’ disability compensation subsection. ical information must be accessible to health ‘‘(4) The results of the physical examina- ‘‘(a) PAYMENT OF BOTH RETIRED PAY AND care providers’’. tion of a member under this subsection shall COMPENSATION.—Except as provided in sub- (2) The Task Force put forward a series of be included on the Form DD214 of the mem- section (b), a member or former member of seven recommendations designed to create a ber (or any successor form). the uniformed services who is entitled to re- seamless transition from military service to ‘‘(5) The Secretary concerned shall trans- tired pay (other than as specified in sub- veteran status. Nearly two years after the mit in electronic form to the Secretary of section (c)) and who is also entitled to vet- submittal of its final report, few of the rec- Veterans Affairs the results of each physical erans’ disability compensation is entitled to ommendations have been adopted. examination conducted by such Secretary be paid both without regard to sections 5304 (3) Leading nonpartisan veterans’ advo- under this subsection.’’. and 5305 of title 38. cates, including the American Legion, Vet- SEC. 305. ENHANCEMENT OF PRESEPARATION ‘‘(b) SPECIAL RULE FOR CHAPTER 61 CAREER erans of Foreign Wars, Disabled American COUNSELING REQUIREMENTS. RETIREES.—The retired pay of a member re- Veterans, and the Military Officers Associa- Section 1142(b) of title 10, United States tired under chapter 61 of this title with 20 tion of America, support the adoption of the Code, is amended— years or more of service otherwise creditable recommendations made by the Task Force to (1) by redesignating paragraphs (3) through under section 1405 of this title at the time of create a seamless transition from military (10) as paragraphs (4) through (11), respec- the member’s retirement is subject to reduc- service to veteran status. tively; and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00066 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S173 (2) by striking paragraph (2) and inserting tion to facilitate the timely and accurate as- the Armed Forces during service in the the following new paragraphs: sessment of the illnesses or injuries of a Armed Forces through exposure to occupa- ‘‘(2) A description (to be developed with the member of the Armed Forces that may have tional hazards and other toxic and hazardous assistance of the Secretary of Veterans Af- been incurred or aggravated by the substances. fairs) of the health care and other benefits to members’s exposure to toxic or hazardous (2) The treatment of members of the which the member may be entitled under the substances during service in the Armed Armed Forces and veterans for illnesses and laws administered by the Secretary of Vet- Forces. injuries described in paragraph (1). erans Affairs, including compensation and (2) Mechanisms that provide, to the max- (3) The conduct of epidemiological studies vocational rehabilitation benefits in the case imum extent practicable consistent with the on the health consequences of the exposure of a member being medically separated or national security interests of the United of members of the Armed Forces to occupa- being retired under chapter 61 of this title, States, for the declassification of informa- tional hazards and other toxic and hazardous which shall be taken into account the tion necessary to achieve the purpose of the substances during service in the Armed preseperation physical examination of the protocols. Forces. member conducted under section 1145(d) of (3) Procedures to ensure that information (4) The development of guidance and other this title. is shared under the protocols as a matter of information on policies and practices in- ‘‘(3) In the case of a member who, as deter- routine operations of the Department of De- tended to prevent, reduce, or mitigate the mined pursuant to the preseperation phys- fense and the Department of Veterans Af- exposure of members of the Armed Forces to ical examination conducted under section fairs. occupational hazards and other toxic and 145(d) of this title, may be entitled to com- (e) REPORT.—Not later than one year after hazardous substances during service in the pensation or pensions benefits under the the date of the enactment of this Act, the Armed Forces. laws administered by the Secretary of Vet- Secretary of Defense and the Secretary of Veterans Affairs shall jointly submit to Con- TITLE IV—INCREASED GOVERNMENT erans Affairs, a referral (to be provided with COMMITMENT TO VETERANS’ EDUCATION the assistance of the Secretary of Veterans gress a report on the protocols developed under subsection (a). The report shall in- Affairs) for a compensation and pension ex- SEC. 401. SHORT TITLE. clude such recommendations for legislative amination by the Secretary of Veterans Af- This title may be cited as the ‘‘Mont- or administrative action as the Secretaries fairs.’’. gomery GI Bill for the 21st Century Act’’. consider appropriate. SEC. 306. EPIDEMIOLOGICAL STUDIES. (f) FUNDING.— SEC. 402. FINDINGS. (a) IN GENERAL.—The Secretary of Defense (1) DEPARTMENT OF DEFENSE.—Amounts au- Congress makes the following findings: and the Secretary of Veterans Affairs may, thorized to be appropriated for fiscal year (1) 2004 marked the 60th anniversary of the during the five-year period beginning on Oc- 2006 for the Department of Defense for oper- Servicemen’s Readjustment Act of 1944, bet- tober 1, 2005, jointly carry out such ation and maintenance, defense-wide, shall ter known as the G.I. Bill. Out of an eligible epidemioligical studies relating to veterans’ be available for the development of protocols population of 15,500,000 veterans, nearly health conditions that develop as a result of under subsection (a). 8,000,000 received education or training as a occupational exposure during military serv- (2) DEPARTMENT OF VETERANS AFFAIRS.— result of this legislation, one of the most ice as such Secretaries consider appropriate. Amounts authorized to be appropriated for successful Federal Government programs in (b) FUNDING.— fiscal year 2006 for the Department of Vet- United States history. (1) DEPARTMENT OF DEFENSE.—Of the erans Affairs shall be available for the devel- (2) Since Congress first enacted the G.I. amount authorized to be appropriated for fis- opment of protocols under subsection (a). Bill, veterans’ benefits have been updated to cal year 2006 for the Department of Defense keep pace with changing times. Over for the Defense Health Program, $2,500,000 SEC. 308. COORDINATION OF LONG-TERM RE- SEARCH ON HEALTH CARE. 21,000,000 veterans have now received edu- shall be available for the epidemiological (a) DEPARTMENT OF VETERANS AFFAIRS cational assistance through the G.I. Bill and studies authorized by subsection (a). REPRESENTATIVE ON ARMED FORCE EPIDEMIO- its successors. (2) DEPARTMENT OF VETERANS AFFAIRS.—Of LOGICAL BOARD.— (3) Congress has a duty to ensure that the the amount appropriated for fiscal year 2006 (1) IN GENERAL.—The Secretary of Defense VA can continue to offer an education assist- for the Department of Veterans Affairs for shall appoint to the Armed Forces Epidemio- ance program that robustly supports vet- Medical Care, $2,500,000 shall be available for logical Board, as an ex officio member, an of- erans’ efforts to obtain higher education and the epidemiological studies authorized by ficer of the Department of Veterans Affairs make a successful transition from military subsection (a). designated by the Secretary of Veterans Af- to civilian life. (3) AVAILABILITY.—Amounts available fairs for the purpose of this subsection. SEC. 403. EXCLUSION OF BASIC PAY CONTRIBU- under this subsection shall be available with- (2) PURPOSE.—The purpose of the appoint- out fiscal year limitation. TIONS FOR PARTICIPATION IN BASIC ment under this subsection is to ensure that EDUCATIONAL ASSISTANCE IN CER- SEC. 307. INFORMATION SHARING. the Armed Forces Epidemiological Board TAIN COMPUTATIONS ON STUDENT (a) IN GENERAL.—The Secretary of Defense considers and takes into account the views FINANCIAL AID. and the Secretary of Veterans Affairs shall and recommendations of the Department of (a) EXCLUSION.—Subchapter II of chapter 30 jointly develop protocols to facilitate the Veterans Affairs in providing advice to the of title 38, United States Code, is amended by sharing of information between the Depart- Assistant Secretary of Defense for Health Af- adding at the end the following new section: ment of Defense and the Department of Vet- fairs and the surgeons general of the Armed erans Affairs on the matters referred to in Forces. ‘‘§ 3020A. Exclusion of basic pay contributions subsection (c) with respect to each member (b) DEPARTMENT OF VETERANS AFFAIRS in certain computations on student finan- of the Armed Forces. REPRESENTATIVE ON DEPARTMENT OF DE- cial aid (b) PURPOSE.—The purpose of the protocols FENSE SAFETY AND OCCUPATIONAL HEALTH ‘‘(a) IN GENERAL.—The expected family is to facilitate determinations by the De- COMMITTEE.— contribution computed under section 475, 476, partment of Veterans Affairs of the existence (1) IN GENERAL.—The Secretary of Defense or 477 of the Higher Education Act of 1965 (20 and extent of a connection any illness or in- shall appoint to the Department of Defense U.S.C. 1087oo, 1087pp, 1087qq) for a covered jury experienced by a former member of the Safety and Occupational Health Committee, student shall be decreased by $1,200 for the Armed Forces after separation from the as an ex officio member, an officer of the De- applicable year. Armed Forces and the exposure of the mem- partment of Veterans Affairs designated by ‘‘(b) DEFINITIONS.—In this section: ber to toxic or hazardous substances in the the Secretary of Veterans Affairs for the ‘‘(1) The term ‘academic year’ has the course of the member’s duties or assign- purpose of this subsection. meaning given the term in section 481(a)(2) ments as a member of the Armed Forces. (2) PURPOSE.—The purpose of the appoint- of the Higher Education Act of 1965 (20 U.S.C. (c) COVERED MATTERS.—The matters re- ment under paragraph (1) is to ensure that 1088(a)(2)). ferred to in this subsection with respect to a the Department of Defense and the Depart- ‘‘(2) The term ‘applicable year’ means the member of the Armed Forces are as follows: ment of Veterans Affairs establish and main- first academic year for which a student uses (1) The duties and assignments of the mem- tain effective collaboration on matters relat- entitlement to basic educational assistance ber, including the location of such duties and ing to occupational safety and health of cur- under this chapter. assignments. rent and former members of the Armed ‘‘(3) The term ‘covered student’ means any (2) Any exposures of the member in the Forces. individual entitled to basic educational as- course of such duties and assignments to (c) ANNUAL REPORT ON FORCE HEALTH PRO- sistance under this chapter whose basic pay toxic or hazardous substances. TECTION.—Not later than March 1 each year, or voluntary separation incentives was or (3) Any illness or injury of the member in- the Secretary of Defense and the Secretary were subject to reduction under section curred or aggravated in the course of such of Veterans Affairs shall jointly submit to 3011(b), 3012(c), 3018(c), 3018A(b), or 3018B(b) of duties and assignments. Congress each year a report on the efforts of this title.’’. (d) ELEMENTS OF PROTOCOLS.—The proto- the Department of Defense and Department cols on the sharing of information developed of Veterans Affairs, respectively, during the (b) CLERICAL AMENDMENT.—The table of under subsection (a) shall include the fol- preceding calendar year, to accomplish the sections at the beginning of such chapter is lowing: following: amended by inserting after the item relating (1) Mechanisms to ensure that the Depart- (1) The identification of illnesses and inju- to section 3020 the following new item: ment of Veterans Affairs receives informa- ries incurred or aggravated by members of ‘‘3020A. Exclusion of basic pay contributions in certain computations on stu- dent financial aid.’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00067 Fmt 0637 Sfmt 0655 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S174 CONGRESSIONAL RECORD — SENATE January 24, 2005 SEC. 404. OPPORTUNITY FOR ENROLLMENT IN (3) by adding at the end the following new Sec. 202. Definitions. BASIC EDUCATIONAL ASSISTANCE paragraph: Sec. 203. Grant program. PROGRAM OF CERTAIN INDIVID- ‘‘(8) if the person enrolls in a program of Sec. 204. Authorization of appropriations. UALS WHO PARTICIPATED OR WERE special restorative training under subchapter ELIGIBLE TO PARTICIPATE IN POST- V of this chapter, such period shall begin on TITLE III—SENSE OF THE SENATE RE- VIETNAM ERA VETERANS EDU- GARDING FULLY FUNDING THE INDI- CATIONAL ASSISTANCE PROGRAM. the first day of the person’s pursuit of such program of special restorative training.’’. VIDUALS WITH DISABILITIES EDU- (a) OPPORTUNITY FOR ENROLLMENT.—Sec- CATION ACT BY 2011 tion 3018C(e) of title 38, United States Code, (c) ELIGIBLE SURVIVING SPOUSES.—Sub- is amended— section (b) of such section is amended by Sec. 301. Findings. (1) in paragraph (1), by inserting ‘‘or (3)’’ adding at the end the following new para- Sec. 302. Sense of the Senate regarding au- after ‘‘paragraph (2)’’; graph: thorization of appropriations. (2) by redesignating paragraphs (3), (4), and ‘‘(3) Notwithstanding the provisions of paragraph (1) of this subsection, any eligible TITLE IV—IMPROVEMENT OF ELEMEN- (5) as paragraphs (4), (5), and (6), respec- person (as defined in section 3501(a)(1)(B) or TARY AND SECONDARY EDUCATION tively; (D)(ii) of this title) who, during the 10-year (3) by inserting after paragraph (2) the fol- SUBTITLE A—PUBLIC SCHOOL CHOICE, SUPPLE- period described in paragraph (1) of this sub- lowing new paragraph (3): MENTAL EDUCATIONAL SERVICES, AND ‘‘(3) A qualified individual referred to in section, enrolls in a program of special re- TEACHER QUALITY paragraph (1) is also an individual who meets storative training under subchapter V of this Sec. 401. Public school choice capacity. chapter may be afforded educational assist- each of the following requirements: Sec. 402. Supplemental educational services. ‘‘(A) The individual is a participant in the ance under this chapter during the 10-year period beginning on the first day of the indi- Sec. 403. Qualifications for teachers and educational benefits program under chapter paraprofessionals. 32 of this title as of the date of the enact- vidual’s pursuit of such program of special ment of the Montgomery GI Bill for the 21st restorative training.’’. SUBTITLE B—ADEQUATE YEARLY PROGRESS Century Act, or was eligible to participate in DETERMINATIONS such program, but had not participated in By Mr. BINGAMAN (for himself, Sec. 421. Review of adequate yearly progress that program or any other educational bene- Mr. REID, Mr. KENNEDY, Mr. determinations for schools for fits program under this title, as of that date. CORZINE, Mr. DURBIN, Mr. REED, the 2002–2003 school year. ‘‘(B) The individual meets the require- Mr. SCHUMER, Mr. DODD, Mr. Sec. 422. Review of adequate yearly progress ments of subsection (a)(3). HARKIN, Ms. MIKULSKI, Ms. determinations for local edu- ‘‘(C) The individual, when discharged or re- STABENOW, Mr. LAUTENBERG, cational agencies for the 2002– leased from active duty, is discharged or re- Mrs. FEINSTEIN, Mrs. CLINTON, 2003 school year. leased therefrom with an honorable dis- Mr. INOUYE, Mr. ROCKEFELLER, Sec. 423. Definitions. charge.’’; SUBTITLE C—TECHNICAL ASSISTANCE (4) in paragraph (5), as so redesignated, by Mr. SARBANES, and Mr. DAY- striking ‘‘paragraph (3)(A)(ii)’’ and inserting TON): Sec. 451. Technical assistance. S. 15. A bill to improve education for ‘‘paragraph (4)(A)(ii)’’; and TITLE V—IMPROVING ASSESSMENT AND (5) in paragraph (6), as so redesignated, by all students, and for other purposes; to ACCOUNTABILITY inserting ‘‘, or individuals eligible to partici- the Committee on Finance pate in that program who have not partici- Mr. BINGAMAN. Mr. President, I ask Sec. 501. Grants for increasing data capacity pated in that program or any other edu- unanimous consent that the text of the for purposes of assessment and accountability. cational benefits program under this title,’’ bill be printed in the RECORD. after ‘‘chapter 32 of this title’’. There being no objection, the bill was Sec. 502. Grants for assessment of children (b) CONFORMING AND CLERICAL AMEND- with disabilities and children ordered to be printed in the RECORD, as MENTS.—(1) The heading of such section is who are limited English pro- amended to read as follows: follows: ficient. S. 15 ‘‘§ 3018C. Opportunity to enroll: certain VEAP Sec. 503. Reports on student enrollment and participants; certain individuals eligible for Be it enacted by the Senate and House of Rep- graduation rates. participation in VEAP’’. resentatives of the United States of America in Sec. 504. Civil rights. Congress assembled, (2) The table of sections at the beginning of TITLE VI—SENSE OF THE SENATE RE- chapter 30 of such title is amended by strik- SECTION 1. SHORT TITLE. GARDING FUNDING FOR ELEMENTARY This Act may be cited as the ‘‘Quality Edu- ing the item relating to section 3018C and in- AND SECONDARY EDUCATION cation for All Act’’. serting the following new item: SEC. 2. TABLE OF CONTENTS. Sec. 601. Sense of the Senate. ‘‘3018C. Opportunity to enroll: certain VEAP The table of contents for this Act is as fol- TITLE VII—PROVIDING A ROADMAP FOR participants; certain individ- lows: uals eligible for participation in FIRST GENERATION COLLEGE FOR VEAP.’’. Sec. 1. Short title. STUDENTS Sec. 2. Table of contents. SEC. 405. COMMENCEMENT OF 10-YEAR DELIM- Sec. 701. Expansion of TRIO and GEARUP. ITING PERIOD FOR VETERANS, SUR- TITLE I—STRENGTHENING HEAD START AND CHILD CARE PROGRAMS TITLE VIII—COLLEGE TUITION RELIEF VIVORS, AND DEPENDENTS WHO EN- FOR STUDENTS AND THEIR FAMILIES ROLL IN TRAINING PROGRAM. SUBTITLE A—INCREASING ACCESS TO HEAD THROUGH PELL GRANTS (a) VETERANS.—Section 3031 of title 38, START PROGRAMS United States Code, is amended— Sec. 101. Authorization of appropriations. Sec. 801. Pell Grants tax tables hold harm- (1) in subsection (a), by striking ‘‘through Sec. 102. Strengthening Indian and migrant less. (g), and subject to subsection (h)’’ and insert- and seasonal Head Start pro- Sec. 802. Sense of the Senate regarding in- ing ‘‘through (h), and subject to subsection grams. creasing the maximum Pell (i)’’; Sec. 103. Expanding Early Head Start pro- Grant. (2) by redesignating subsection (h) as sub- grams. Sec. 803. Establishment of a Pell demonstra- section (i); and Sec. 104. Participation in Head Start pro- tion program. grams. (3) by inserting after subsection (g) the fol- TITLE IX—TUITION FREE COLLEGE FOR lowing new subsection (h): SUBTITLE B—ENHANCING THE SCHOOL MATHEMATICS, SCIENCE, AND SPE- ‘‘(h) In the case of an individual eligible for READINESS OF HEAD START CHILDREN CIAL EDUCATION TEACHERS educational assistance under this chapter Sec. 111. School readiness standards. who, during the 10-year period described in Sec. 112. Staff. Sec. 901. Purpose. subsection (a) of this section, enrolls in a SUBTITLE C—EXPANDING ACCESS TO QUALITY, Sec. 902. Tuition free college for mathe- program of training under this chapter, the AFFORDABLE CHILD CARE matics, science, and special education teachers. period during which the individual may use Sec. 121. Authorization of appropriations. the individual’s entitlement to educational Sec. 903. Offset for tuition free college for SUBTITLE D—STRENGTHENING THE QUALITY OF assistance under this chapter expires on the mathematics, science, and spe- CHILD CARE last day of the 10-year period beginning on cial education teachers. the first day of the individual’s pursuit of Sec. 131. State plan requirements relating to training. TITLE X—MAKING COLLEGE such program of training.’’. AFFORDABLE FOR ALL STUDENTS (b) ELIGIBLE CHILDREN.—Subsection (a) of Sec. 132. Strengthening the quality of child section 3512 of such title is amended— care. Sec. 1001. Expansion of deduction for higher (1) in paragraph (6)(B), by striking ‘‘and’’ TITLE II—PROVIDING SAFE, RELIABLE education expenses. at the end; TRANSPORTATION FOR RURAL SCHOOL Sec. 1002. Credit for interest on higher edu- (2) in paragraph (7), by striking the period CHILDREN cation loans. at the end and inserting ‘‘; and’’; and Sec. 201. Findings and purpose. Sec. 1003. Hope and Lifetime Learning cred- its to be refundable.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00068 Fmt 0637 Sfmt 0655 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S175 TITLE I—STRENGTHENING HEAD START striking ‘‘at a minimum’’ and all that fol- programs to demonstrate continuing and AND CHILD CARE PROGRAMS lows and inserting the following: ‘‘at a min- consistent progress each year to reach the Subtitle A—Increasing Access to Head Start imum, develop and demonstrate— results described in subparagraphs (A) and Programs ‘‘(I) language skills, including an expanded (C). SEC. 101. AUTHORIZATION OF APPROPRIATIONS. use of vocabulary; ‘‘(ii) PLAN.—Each State shall establish a Section 639(a) of the Head Start Act (42 ‘‘(II) interest in and appreciation of books, plan for the Head Start agencies with center- U.S.C. 9834(a)) is amended by striking ‘‘such reading, and writing (either alone or with based programs in the State to reach the re- sums’’ and all that follows and inserting the others), phonological and phonemic aware- sults described in subparagraphs (A) and (C). following: ‘‘$8,570,000,000 for fiscal year 2006, ness, and varied modes of expression and ‘‘(iii) PROGRESS.—Each Head Start agency $10,445,000,000 for fiscal year 2007, communication; shall prepare and submit to the Secretary $12,384,000,000 for fiscal year 2008, ‘‘(III) premathematics knowledge and and the Governor of the State a report indi- $14,334,000,000 for fiscal year 2009, and skills, including knowledge and skills relat- cating the number and percentage of its $16,332,000,000 for fiscal year 2010.’’. ing to aspects of classification, seriation, teachers in center-based programs with child SEC. 102. STRENGTHENING INDIAN AND MI- numbers, spatial relations, and time; development associate credentials or asso- GRANT AND SEASONAL HEAD START ‘‘(IV) cognitive abilities related to aca- ciate, baccalaureate, or advanced degrees in PROGRAMS. demic achievement; early childhood education or a field related Section 640(a)(2) of the Head Start Act (42 ‘‘(V) abilities related to social and emo- to early childhood education. The Secretary U.S.C. 9835(a)(2)) is amended by striking sub- tional development; shall compile all such reports and submit a paragraph (A) and inserting the following: ‘‘(VI) gross and fine motor skills; and summary of the compiled reports to the ‘‘(A) Indian Head Start programs, services ‘‘(VII) in the case of children with limited Committee on Health, Education, Labor, and for children with disabilities, and migrant English proficiency, abilities related to Pensions of the Senate and the Committee and seasonal Head Start programs, except progress toward acquisition of the English on Education and the Workforce of the that the Secretary shall reserve for each fis- language.’’. House of Representatives.’’; cal year for use by Indian Head Start and mi- SEC. 112. STAFF. (2) in subsection (a)(3), by striking ‘‘(2)(A)’’ grant and seasonal Head Start programs (re- (a) STAFF QUALIFICATIONS AND DEVELOP- and inserting ‘‘(2)(B)’’; and ferred to in this subparagraph as ‘covered MENT.—Section 648A of the Head Start Act (3) by adding at the end the following: programs’), on a nationwide basis, a sum (42 U.S.C. 9843a) is amended— ‘‘(f) PRE-LITERACY AND LANGUAGE TRAIN- that is the total of not less than 4 percent of (1) in subsection (a)(2)— ING.—To support local efforts to enhance the amount appropriated under section 639(a) (A) in subparagraph (A)— early language and pre-literacy development for that fiscal year (for Indian Head Start (i) in the matter preceding clause (i), by of children in Head Start programs, and to programs), and not less than 5 percent of striking ‘‘not later than September 30, 2003’’ provide the children with high-quality oral that appropriated amount (for migrant and and all that follows through ‘‘programs language skills and environments that are seasonal Head Start programs), except that— have’’ and inserting ‘‘not later than the date rich in literature, in which to acquire early language and pre-literacy skills, each Head ‘‘(i) if reserving the specified percentages determined under subparagraph (D) for a Start agency shall ensure that all of the for covered programs and would reduce the Head Start region, each Head Start agency agency’s Head Start teachers receive ongo- number of children served by Head Start pro- in the region with a center-based program ing training in language and emergent lit- grams, relative to the number of children shall ensure that all classrooms in the pro- eracy. Such training shall also include infor- served on the date of enactment of the Qual- gram have at least 1 teacher who has’’; mation regarding appropriate curricula and ity Education for All Act, taking into con- (ii) in clause (i), strike ‘‘an associate, bac- assessments to improve instruction and sideration an appropriate adjustment for in- calaureate,’’ and insert ‘‘a baccalaureate’’; learning. Such training shall include train- flation, the Secretary shall reserve percent- and ing in methods to promote phonological and ages that approach, as closely as practicable, (iii) in clause (ii), strike ‘‘an associate, phonemic awareness and vocabulary develop- the specified percentages and that do not baccalaureate,’’ and insert ‘‘a bacca- ment in an age-appropriate and culturally cause such a reduction; and laureate’’; and and linguistically appropriate manner. ‘‘(ii) notwithstanding any other provision (B) by striking subparagraph (B) and in- ‘‘(g) PROFESSIONAL DEVELOPMENT PLANS.— of this subparagraph, the Secretary shall re- serting the following: Each Head Start agency and center shall cre- serve for each fiscal year for use by Indian ‘‘(B) TEMPORARY REQUIREMENT.—Until the ate, in consultation with employees of the Head Start programs and by migrant and date determined under subparagraph (D) for agency or center (including family service seasonal Head Start programs, on a nation- a Head Start region, the Secretary shall en- workers), a professional development plan wide basis, not less than the amount that sure that at least 50 percent of all Head for employees who provide direct services to was obligated for use by Indian Head Start Start teachers in the region in center-based children, including a plan for teachers, to programs and by migrant and seasonal Head programs have— meet the requirements set forth in sub- Start programs, respectively, for the pre- ‘‘(i) an associate, baccalaureate, or ad- section (a).’’. vious fiscal year;’’. vanced degree in early childhood education; (b) ATTRACTING AND RETAINING HIGH-QUAL- SEC. 103. EXPANDING EARLY HEAD START PRO- or ITY HEAD START TEACHERS; TRIBAL COLLEGE GRAMS. ‘‘(ii) an associate, baccalaureate, or ad- OR UNIVERSITY-HEAD START PARTNERSHIP Section 640(a)(6) of the Head Start Act (42 vanced degree in a field related to early PROGRAM.— U.S.C. 9835(a)(6)) is amended— childhood education, with experience in (1) PROGRAM.—The Head Start Act is (1) in subparagraph (A), by striking ‘‘7.5 teaching preschool children. amended by inserting after section 648A (42 percent for fiscal year 1999’’ and all that fol- ‘‘(C) REQUIREMENT FOR NEW HEAD START U.S.C. 9843a) the following: lows and inserting ‘‘12 percent for fiscal year TEACHERS.—Not later than 3 years after the 2006, 14 percent for fiscal year 2007, 16 percent ‘‘SEC. 648B. ATTRACTING AND RETAINING HIGH- date of enactment of the Quality Education QUALITY HEAD START TEACHERS. for fiscal year 2008, 18 percent for fiscal year for All Act, the Secretary shall require that ‘‘(a) IN GENERAL.—The Secretary shall 2009, and 20 percent for fiscal year 2010, of the all teachers hired nationwide in center-based make grants to eligible Head Start agencies amount appropriated pursuant to section programs of Head Start agencies following to enable the agencies to reach the results 639(a).’’; the date of the requirement— described in subparagraphs (A) and (C) of sec- (2) by striking subparagraph (B); and ‘‘(i) have an associate, baccalaureate, or tion 648A(a)(2). The Secretary shall make the (3) by redesignating subparagraph (C) as advanced degree in early childhood edu- grants from allotments determined under subparagraph (B). cation; subsection (b). SEC. 104. PARTICIPATION IN HEAD START PRO- ‘‘(ii) have an associate, baccalaureate, or ‘‘(b) ALLOTMENTS.—From the funds made GRAMS. advanced degree in a field related to early available under section 639(c) for a fiscal Section 645 of the Head Start Act (42 U.S.C. childhood education, with experience in year and not reserved under subsection (d), 9840) is amended— teaching preschool children; or the Secretary shall allot to each Head Start (1) in subsection (a)(1)(A), by inserting ‘‘130 ‘‘(iii) be enrolled, or enroll not later than 1 agency an amount that bears the same rela- percent of’’ after ‘‘below’’; and year after the date of hire, in a program of tionship to such funds as the amount re- (2) by adding at the end the following: study leading to an associate degree in early ceived by the agency under section 640 for ‘‘(e) After demonstrating a need through a childhood education. that fiscal year bears to the amount received community needs assessment, a Head Start ‘‘(D) APPROPRIATE DATE.—The Secretary by all Head Start agencies under section 640 agency may apply to the Secretary to con- shall determine an appropriate date for Head for that fiscal year. vert part-day sessions, particularly consecu- Start agencies in each Head Start region to ‘‘(c) SALARY PLAN.—A Head Start agency tive part-day sessions, into full-day ses- reach the result described in subparagraph that receives a grant under this section shall sions.’’. (A), but in no case shall such a date be later develop and carry out a plan to raise the av- Subtitle B—Enhancing the School Readiness than 8 years after the date of enactment of erage salaries of teachers in the agency’s of Head Start Children Quality Education for All Act. Head Start programs. In developing the plan, SEC. 111. SCHOOL READINESS STANDARDS. ‘‘(E) PROGRESS.— the agency shall take into consideration the Section 641A(a)(1)(B)(ii) of the Head Start ‘‘(i) REQUIREMENT.—The Secretary shall re- training, level of education, and experience Act (42 U.S.C. 9836(a)(1)(B)(ii)) is amended by quire Head Start agencies with center-based of the teachers, and the average salaries of

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00069 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S176 CONGRESSIONAL RECORD — SENATE January 24, 2005 prekindergarten and kindergarten teachers 2007, $608,000,000 for fiscal year 2008, hance early learning for young children, to employed by the local educational agency $723,000,000 for fiscal year 2009, and promote literacy, and to foster school pre- for the school district in which the Head $841,000,000 for fiscal year 2010.’’. paredness; Start agency is located, with similar train- (3) CONFORMING AMENDMENTS.—Section 640 ‘‘(C) offer training, professional develop- ing, level of education, and experience. of the Head Start Act (42 U.S.C. 9835) is ment, and educational opportunities for ‘‘(d) SALARIES IN HIGH-COST AREAS.—The amended— child care providers that relate to the use of Secretary may reserve and use a portion of (A) in subsection (a)— developmentally appropriate and age-appro- the funds available under section 639(c) to as- (i) in paragraph (1), by striking ‘‘section priate curricula, and early childhood teach- sist Head Start agencies located in high-cost 639’’ and inserting ‘‘section 639(a)’’; ing strategies, that are scientifically based areas to help reduce the discrepancy between (ii) in paragraph (2)— and aligned with the social, emotional, phys- such average salaries of such teachers and (I) in the matter preceding subparagraph ical, and cognitive development of children, such average salaries of such prekinder- (A), by inserting ‘‘pursuant to section 639(a)’’ including— garten and kindergarten teachers. after ‘‘appropriated’’; ‘‘(i) developing and operating distance ‘‘SEC. 648C. TRIBAL COLLEGE OR UNIVERSITY- (II) in subparagraph (B), in the matter fol- learning child care training infrastructures; HEAD START PARTNERSHIP PRO- lowing clause (ii), by inserting ‘‘pursuant to ‘‘(ii) developing model technology-based GRAM. section 639(a)’’ after ‘‘appropriated’’; and training courses; ‘‘(a) TRIBAL COLLEGE OR UNIVERSITY-HEAD (III) in subparagraph (C), by inserting ‘‘(iii) offering training for caregivers in in- START PARTNERSHIP PROGRAM.— ‘‘pursuant to section 639(a)’’ after ‘‘appro- formal child care settings; and ‘‘(1) GRANTS.—The Secretary is authorized priated’’ each place it appears; and ‘‘(iv) offering training for child care pro- to award grants, of not less than 5 years du- (iii) in paragraph (4), in the matter pre- viders who care for infants and toddlers and ration, to Tribal Colleges and Universities ceding subparagraph (A), by inserting ‘‘pur- children with special needs; to— suant to section 639(a)’’ after ‘‘appro- ‘‘(D) engage in programs designed to in- ‘‘(A) implement education programs that priated’’; and crease the retention and improve the com- include tribal culture and language and in- (B) in subsection (g)(1), by inserting ‘‘pur- petencies of child care providers, including crease the number of associate, bacca- suant to section 639(a)’’ after ‘‘appropriated’’ wage incentive programs and initiatives that laureate, and graduate degrees in early each place it appears. establish tiered payment rates for providers childhood education and related fields that that meet or exceed child care services Subtitle C—Expanding Access to Quality, are earned by Indian Head Start agency staff guidelines, as defined by the State; Affordable Child Care members, parents of children served by such ‘‘(E) evaluate and assess the quality and ef- an agency, and members of the tribal com- SEC. 121. AUTHORIZATION OF APPROPRIATIONS. fectiveness of child care programs and serv- munity involved; Section 658B of the Child Care and Devel- ices offered in the State to young children on ‘‘(B) develop and implement the programs opment Block Grant Act of 1990 (42 U.S.C. improving overall school preparedness; and under subparagraph (A) in technology-medi- 9858) is amended— ‘‘(F) carry out other activities determined ated formats; and (1) by striking ‘‘is’’ and inserting ‘‘are’’; by the State to improve the quality of child ‘‘(C) provide technology literacy programs and care services provided in the State and for for Indian Head Start agency staff members (2) by striking ‘‘subchapter’’ and all that which measurement of outcomes relating to and children and families of children served follows and inserting ‘‘subchapter improved child safety, child well-being, or by such an agency. $3,100,000,000 for fiscal year 2006, $4,100,000,000 school preparedness is possible. for fiscal year 2007, $5,100,000,000 for fiscal ‘‘(2) STAFFING.—The Secretary shall ensure ‘‘(b) CERTIFICATION.—For each fiscal year that the American Indian Programs Branch year 2008, $6,100,000,000 for fiscal year 2009, beginning after September 30, 2005, the State of the Head Start Bureau of the Department and $7,100,000,000 for fiscal year 2010.’’. shall annually submit to the Secretary a cer- of Health and Human Services shall have Subtitle D—Strengthening the Quality of tification in which the State certifies and staffing sufficient to administer the pro- Child Care demonstrates that the State was in compli- grams under this section and to provide ap- SEC. 131. STATE PLAN REQUIREMENTS RELATING ance with subsection (a) during the pre- propriate technical assistance to Tribal Col- TO TRAINING. ceding fiscal year and describes how the leges and Universities receiving grants under Section 658E(c) of the Child Care and De- State used funds made available to carry out this section. velopment Block Grant Act of 1990 (42 U.S.C. this subchapter to comply with subsection ‘‘(b) APPLICATION.—Each Tribal College or 9858c(c)) is amended by adding at the end the (a) during that preceding fiscal year.’’. University desiring a grant under this sec- following: TITLE II—PROVIDING SAFE, RELIABLE tion shall submit an application to the Sec- ‘‘(6) TRAINING IN EARLY LEARNING AND TRANSPORTATION FOR RURAL SCHOOL retary, at such time, in such manner, and CHILDHOOD DEVELOPMENT.—The State plan CHILDREN containing such information as the Sec- shall describe any training requirements SEC. 201. FINDINGS AND PURPOSE. retary may require, including a certification that are in effect within the State that are (a) FINDINGS.—Congress finds that— that the Tribal College or University has es- designed to enable child care providers to (1) school transportation issues have con- tablished a partnership with 1 or more In- promote the social, emotional, physical, and cerned parents, local educational agencies, dian Head Start agencies for the purpose of cognitive development of children and that lawmakers, the National Highway Traffic conducting the activities described in sub- are applicable to child care providers that Safety Administration, the National Trans- section (a). provide services for which assistance is made portation Safety Board, and the Environ- ‘‘(c) DEFINITIONS.—In this section: available under this subchapter in the mental Protection Agency for years; ‘‘(1) INSTITUTION OF HIGHER EDUCATION.— State.’’. (2) millions of children face potential fu- The term ‘institution of higher education’ SEC. 132. STRENGTHENING THE QUALITY OF ture health problems because of exposure to has the meaning given such term in section CHILD CARE. noxious fumes emitted from older school 101(a) of the Higher Education Act of 1965 (20 Section 658G of the Child Care and Devel- buses; U.S.C. 1001(a)). opment Block Grant Act of 1990 (42 U.S.C. (3) the Environmental Protection Agency ‘‘(2) TRIBAL COLLEGE OR UNIVERSITY.—The 9858e) is amended to read as follows: established the Clean School Bus USA pro- term ‘Tribal College or University’ means an ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUAL- gram to replace 129,000 of the oldest diesel institution— ITY OF CHILD CARE. buses that cannot be retrofitted in an effort ‘‘(A) defined by such term in section 316(b) ‘‘(a) IN GENERAL.— to help children and the environment by im- of the Higher Education Act of 1965 (20 U.S.C. ‘‘(1) RESERVATION.—Each State that re- proving air quality; 1059c(b)); and ceives funds appropriated under section (4) unfortunately, many rural local edu- ‘‘(B) determined to be accredited or a can- 639(a) for a fiscal year shall reserve and use cational agencies are unable to participate didate for accreditation by a nationally rec- not less than 6 percent of the funds for ac- in that program because of the specialized ognized accrediting agency or association. tivities provided directly, or through grants fuels needed to sustain a clean bus fleet; ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— or contracts with resource and referral orga- (5) many rural local educational agencies There are authorized to be appropriated to nizations or other appropriate entities, that are operating outdated, unsafe school buses carry out this section, $10,000,000 for fiscal are designed to improve the quality of child that are failing inspections because of auto- year 2006 and such sums as may be necessary care services. motive flaws, resulting in the depletion of for each of fiscal years 2007 through 2010.’’. ‘‘(2) ACTIVITIES.—The funds reserved under the school bus fleets of the local educational (2) AUTHORIZATION OF APPROPRIATIONS.— paragraph (1) may only be used to— agencies; and Section 639 of the Head Start Act (42 U.S.C. ‘‘(A) develop and implement voluntary (6) many rural local educational agencies 9834) is amended— guidelines on pre-reading and language skills are unable to afford to buy newer, safer (A) in subsection (a), by inserting ‘‘(other and activities, for child care programs in the buses. than section 648B)’’ after ‘‘this subchapter’’; State, that are aligned with State standards (b) PURPOSE.—The purpose of this title is and for kindergarten through grade 12 or the to establish within the Department of Edu- (B) by adding at the end the following: State’s general goals for school prepared- cation a Federal cost-sharing program to as- ‘‘(c) There are authorized to be appro- ness; sist rural local educational agencies with priated to carry out section 648B $387,000,000 ‘‘(B) support activities and provide tech- older, unsafe school bus fleets in purchasing for fiscal year 2006, $496,000,000 for fiscal year nical assistance in child care settings to en- newer, safer school buses.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00070 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S177 SEC. 202. DEFINITIONS. dents to enable the students to transfer to (7) A more equitable allocation of re- In this title: another public school served by the rural sources is essential for the Federal Govern- (1) RURAL LOCAL EDUCATIONAL AGENCY.— local educational agency. ment to meet its responsibility to provide an The term ‘‘rural local educational agency’’ (d) USE OF FUNDS.—School buses purchased equal educational opportunity for all indi- means a local educational agency, as defined with grant funds awarded under subsection viduals. in section 9101 of the Elementary and Sec- (a) shall be in compliance with proposed air SEC. 302. SENSE OF THE SENATE REGARDING AU- ondary Education Act of 1965 (20 U.S.C. 7801), quality regulations and standards of the En- THORIZATION OF APPROPRIATIONS. with respect to which— vironmental Protection Agency for 2006. It is the sense of the Senate that for the (A) each county in which a school served (e) PAYMENTS; FEDERAL SHARE.— purpose of carrying out the Federal Govern- by the local educational agency is located (1) PAYMENTS.—The Secretary shall pay to ment’s commitment to children, parents, has a total population density of fewer than each rural local educational agency having and the States, there should be authorized to 10 persons per square mile; an application approved under this section be appropriated— (B) all schools served by the local edu- the Federal share described in paragraph (2) (1) $14,648,647,143 or the maximum amount cational agency are designated with a school of the cost of purchasing such number of new available for awarding grants under section locale code of 7 or 8, as determined by the school buses as is specified in the approved 611(a)(2) of the Individuals with Disabilities Secretary; or application. Education Act, whichever is lower, for fiscal (C) all schools served by the local edu- (2) FEDERAL SHARE.—The Federal share of year 2006, and there should be appropriated the cost of purchasing a new school bus cational agency have been designated, by of- $4,058,901,319 for fiscal year 2006, which under this title shall be 75 percent. ficial action taken by the legislature of the should become available for obligation on State in which the local educational agency SEC. 204. AUTHORIZATION OF APPROPRIATIONS. July 1, 2006, and should remain available is located, as rural schools for purposes re- There are authorized to be appropriated to through September 30, 2007, except that if lating to the provision of educational serv- carry out this title $50,000,000 for fiscal year the maximum amount available for awarding 2006 and such sums as may be necessary for ices to students in the State. grants under section 611(a)(2) of such Act is each of fiscal years 2007 through 2010. less than $14,648,647,143, then the amount (2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Education. TITLE III—SENSE OF THE SENATE RE- should be reduced by the difference between $14,648,647,143 and the maximum amount (3) SCHOOL BUS.—The term ‘‘school bus’’ GARDING FULLY FUNDING THE INDIVID- means a vehicle the primary purpose of UALS WITH DISABILITIES EDUCATION available for awarding grants under section which is to transport students to and from ACT BY 2011 611(a)(2) of such Act; (2) $16,938,917,714 or the maximum amount school or school activities. SEC. 301. FINDINGS. available for awarding grants under section SEC. 203. GRANT PROGRAM. (a) FINDINGS.—The Senate finds the fol- lowing: 611(a)(2) of the Individuals with Disabilities (a) IN GENERAL.—From amounts appro- (1) Disability is a natural part of the Education Act, whichever is lower, for fiscal priated under subsection (e) for a fiscal year, human experience and in no way diminishes year 2007, and there should be appropriated the Secretary shall provide grants, on a com- the right of individuals to participate in or $6,349,171,890 for fiscal year 2007, which petitive basis, to rural local educational contribute to society. Improving educational should become available for obligation on agencies to pay the Federal share of the cost results for children with disabilities is an es- July 1, 2007, and should remain available of purchasing new school buses. sential element of our national policy of en- through September 30, 2008, except that if (b) APPLICATION.— suring equality of opportunity, full partici- the maximum amount available for awarding (1) IN GENERAL.—Each rural local edu- pation, independent living, and economic grants under section 611(a)(2) of such Act is cational agency that seeks to receive a grant self-sufficiency for individuals with disabil- less than $16,938,917,714, then the amount under this title shall submit to the Sec- ities. should be reduced by the difference between retary for approval an application at such (2) Before the date of enactment of the $16,938,917,714 and the maximum amount time, in such manner, and accompanied by Education for All Handicapped Children Act available for awarding grants under section such information (in addition to information of 1975 (Public Law 94–142), the predecessor 611(a)(2) of such Act; required under paragraph (2)) as the Sec- to the Individuals with Disabilities Edu- (3) $19,229,188,286 or the maximum amount retary may require. cation Act (20 U.S.C. 1400 et seq.), the edu- available for awarding grants under section (2) CONTENTS.—Each application submitted cational needs of millions of children with 611(a)(2) of the Individuals with Disabilities under paragraph (1) shall include— disabilities were not being fully met be- Education Act, whichever is lower, for fiscal (A) documentation that, of the total num- cause— year 2008, and there should be appropriated ber of school buses operated by the rural (A) the children did not receive appro- $8,639,442,462 for fiscal year 2008, which local educational agency, not less than 50 priate educational services; should become available for obligation on percent of the school buses are in need of re- (B) the children were excluded entirely July 1, 2008, and should remain available pair or replacement; from the public school system and from through September 30, 2009, except that if (B) documentation of the number of miles being educated with their peers; the maximum amount available for awarding that each school bus operated by the rural (C) undiagnosed disabilities prevented the grants under section 611(a)(2) of such Act is local educational agency traveled in the children from having a successful edu- less than $19,229,188,286, then the amount most recent 9-month academic year; cational experience; or should be reduced by the difference between (C) documentation that the rural local edu- (D) a lack of adequate resources within the $19,229,188,286 and the maximum amount cational agency is operating with a reduced public school system forced such families to available for awarding grants under section fleet of school buses; find services outside the public school sys- 611(a)(2) of such Act; (D) a certification from the rural local edu- tem. (4) $21,519,458,857 or the maximum amount cational agency that— (3) The Individuals with Disabilities Edu- available for awarding grants under section (i) authorizes the application of the rural cation Act has been successful in ensuring 611(a)(2) of the Individuals with Disabilities local educational agency for a grant under children with disabilities and the families of Education Act, whichever is lower, for fiscal this title; and such children access to a free appropriate year 2009, and there should be appropriated (ii) describes the dedication of the rural public education and in improving edu- $10,929,713,033 for fiscal year 2009, which local educational agency to school bus re- cational results for children with disabil- should become available for obligation on placement programs and school transpor- ities. July 1, 2009, and should remain available tation needs (including the number of new (4) The implementation of the Individuals through September 30, 2010, except that if school buses needed by the rural local edu- with Disabilities Education Act has been im- the maximum amount available for awarding cational agency); and peded by the Federal Government’s failure to grants under section 611(a)(2) of such Act is (E) an assurance that the rural local edu- honor the commitment it made 30 years ago less than $21,519,458,857, then the amount cational agency will pay the non-Federal to provide States with 40 percent of the ex- should be reduced by the difference between share of the cost of the purchase of new cess costs of special education. $21,519,458,857 and the maximum amount school buses under this title from non-Fed- (5) While States, local educational agen- available for awarding grants under section eral sources. cies, and educational service agencies are 611(a)(2) of such Act; (c) PRIORITY.—In providing grants under primarily responsible for providing an edu- (5) $23,809,729,429 or the maximum amount this title, the Secretary shall give priority cation for all children with disabilities, it is available for awarding grants under section to rural local educational agencies that, as in the national interest that the Federal 611(a)(2) of the Individuals with Disabilities determined by the Secretary— Government have a supporting role in assist- Education Act, whichever is lower, for fiscal (1) are transporting students in a bus man- ing State and local efforts to educate chil- year 2010, and there should be appropriated ufactured before 1977; dren with disabilities in order to improve re- $13,219,983,605 for fiscal year 2010, which (2) have a grossly depleted fleet of school sults for such children and to ensure equal should become available for obligation on buses; or protection of the law. July 1, 2010, and should remain available (3) serve a school that is required, under (6) Congress passed authorizing language through September 30, 2011, except that if section 1116(b)(9) of the Elementary and Sec- to fully fund the Individuals with Disabil- the maximum amount available for awarding ondary Education Act of 1965 (20 U.S.C. ities Education Act and should appropriate grants under section 611(a)(2) of such Act is 6316(b)(9)), to provide transportation to stu- such sums as authorized. less than $23,809,729,429, then the amount

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00071 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S178 CONGRESSIONAL RECORD — SENATE January 24, 2005 should be reduced by the difference between ments of paragraph (1)(E), (5)(A), (7)(C)(i), or (4) by inserting after paragraph (5) the fol- $23,809,729,429 and the maximum amount (8)(A)(i) of section 1116(b), or section lowing: available for awarding grants under section 1116(c)(10)(C)(vii); and ‘‘(6) RULE OF CONSTRUCTION.—Nothing in 611(a)(2) of such Act; ‘‘(2) with the highest number of schools at this section shall be construed to prohibit a (6) $26,100,000,000 or the maximum amount or above capacity. local educational agency from being consid- available for awarding grants under section ‘‘(d) AWARD BASIS.—From funds remaining ered by a State educational agency as a po- 611(a)(2) of the Individuals with Disabilities after awarding grants under subsection (c), tential provider of supplemental educational Education Act, whichever is lower, for fiscal the Secretary shall award grants to local services under this subsection, if such local year 2011, and there should be appropriated educational agencies that are experiencing educational agency meets the criteria adopt- $15,510,254,176 for fiscal year 2011, which overcrowding in the schools served by the ed by the State educational agency in ac- should become available for obligation on local educational agencies. cordance with paragraph (5).’’; July 1, 2011, and should remain available ‘‘(e) PREVAILING WAGES.—Any laborer or (5) in paragraph (13) (as redesignated by through September 30, 2012, except that if mechanic employed by any contractor or paragraph (3))— the maximum amount available for awarding subcontractor in the performance of work on (A) in subparagraph (B)— grants under section 611(a)(2) of such Act is any construction funded by a grant awarded (i) in clause (ii), by striking ‘‘and’’ after less than $26,100,000,000, then the amount under this section will be paid wages at rates the semicolon; should be reduced by the difference between not less than those prevailing on similar (ii) in clause (iii), by striking ‘‘and’’ after $26,100,000,000 and the maximum amount construction in the locality as determined the semicolon; and available for awarding grants under section by the Secretary of Labor under subchapter (iii) by adding at the end the following: 611(a)(2) of such Act; and IV of chapter 31 of title 40, United States ‘‘(iv) may employ teachers who are highly (7) the maximum amount available for Code (commonly referred to as the Davis- qualified, as such term is defined in section awarding grants under section 611(a)(2) of the Bacon Act). 9101; and Individuals with Disabilities Education Act ‘‘(f) DEFINITIONS.—In this section: ‘‘(v) pursuant to its inclusion on the rel- for fiscal year 2012 and each succeeding fiscal ‘‘(1) AT OR ABOVE CAPACITY.—The term ‘at evant State educational agency’s list de- year, and there should be appropriated for or above capacity’, in reference to a school, scribed in paragraph (4)(C), is deemed to be a each such year an amount equal to the max- means a school in which 1 additional student recipient of Federal financial assistance; imum amount available for awarding grants would increase the average class size of the and’’; and under section 611(a)(2) of such Act for the fis- school above the average class size of all (B) in subparagraph (C)— cal year for which the determination is made schools in the State in which the school is (i) in the matter preceding clause (i), by minus $10,589,745,824, which should become located. striking ‘‘are’’; available for obligation on July 1 of the fis- ‘‘(2) HEALTHY, HIGH-PERFORMANCE SCHOOL (ii) in clause (i)— cal year for which the determination is made BUILDING.—The term ‘healthy, high-perform- (I) by inserting ‘‘are’’ before ‘‘in addition’’; and should remain available through Sep- ance school building’ has the meaning given and tember 30 of the succeeding fiscal year. such term in section 5586. (II) by striking ‘‘and’’ after the semicolon; TITLE IV—IMPROVEMENT OF ELEMEN- ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— (iii) in clause (ii), by striking the period TARY AND SECONDARY EDUCATION There are authorized to be appropriated to and inserting ‘‘; and’’; and carry out this section $250,000,000 for fiscal Subtitle A—Public School Choice, Supple- (iv) by adding at the end the following: year 2006, and such sums as may be necessary mental Educational Services, and Teacher ‘‘(iii) if provided by providers that are in- for each of the 2 succeeding fiscal years.’’. Quality cluded on the relevant State educational (2) TABLE OF CONTENTS.—The table of con- agency’s list described in paragraph (4)(C), SEC. 401. PUBLIC SCHOOL CHOICE CAPACITY. tents of the Elementary and Secondary Edu- shall be deemed to be programs or activities (a) SCHOOL CAPACITY.—Section 1116(b)(1)(E) cation Act of 1965 (20 U.S.C.6301 note) is of the relevant State educational agency.’’; of the Elementary and Secondary Education amended by inserting after the item relating and Act of 1965 (20 U.S.C. 6316(b)(1)(E)) is amend- to section 1120B the following: (6) by adding at the end the following: ed— ‘‘(14) CIVIL RIGHTS.—In providing supple- (1) in clause (i), by striking ‘‘In the case’’ ‘‘Sec. 1120C. Grants for school construc- mental educational services under this sub- and inserting ‘‘Subject to clauses (ii) and tion and renovation.’’. section, no State educational agency or local (iii), in the case’’; SEC. 402. SUPPLEMENTAL EDUCATIONAL SERV- educational agency may, directly or through (2) by redesignating clause (ii) as clause ICES. contractual, licensing, or other arrange- (iii); Section 1116(e) of the Elementary and Sec- ments with a provider of supplemental edu- (3) by inserting after clause (i) the fol- ondary Education Act of 1965 (20 U.S.C. cational services, engage in any form of dis- lowing: 6316(e)) is amended— crimination prohibited by— ‘‘(ii) SCHOOL CAPACITY.—The obligation of a (1) in paragraph (4)— ‘‘(A) title VI of the Civil Rights Act of 1964; local educational agency to provide the op- (A) in subparagraph (B), by striking the ‘‘(B) title IX of the Education Amendments tion to transfer to students under clause (i) semicolon and inserting ‘‘, including criteria of 1972; is subject to all applicable State and local that— ‘‘(C) section 504 of the Rehabilitation Act health and safety code requirements regard- ‘‘(i) ensure that personnel delivering sup- of 1973; ing facility capacity.’’; and plemental educational services to students ‘‘(D) titles II and III of the Americans with (4) in clause (iii) (as redesignated by para- have adequate qualifications; and Disabilities Act; graph (2)), by inserting ‘‘and subject to ‘‘(ii) may, at the State’s discretion, ensure ‘‘(E) the Age Discrimination Act of 1975; clause (ii),’’ after ‘‘public school,’’. that personnel delivering supplemental edu- ‘‘(F) regulations promulgated under the (b) GRANTS FOR SCHOOL CONSTRUCTION AND cational services to students are teachers authority of the laws listed in subparagraphs RENOVATION.— that are highly qualified, as such term is de- (A) through (E); or (1) IN GENERAL.—Subpart 1 of part A of fined in section 9101;’’; title I of the Elementary and Secondary Edu- (B) in subparagraph (D), by striking ‘‘and’’ ‘‘(G) other Federal civil rights laws.’’. cation Act of 1965 (20 U.S.C. 6311 et seq.) is after the semicolon; SEC. 403. QUALIFICATIONS FOR TEACHERS AND amended by adding at the end the following: (C) in subparagraph (E), by striking the pe- PARAPROFESSIONALS. ‘‘SEC. 1120C. GRANTS FOR SCHOOL CONSTRUC- riod and inserting ‘‘; and’’; and (a) HIGH OBJECTIVE UNIFORM STATE STAND- TION AND RENOVATION. (D) by adding at the end the following: ARD OF EVALUATION.—Section 1119 of the Ele- ‘‘(a) PROGRAM AUTHORIZED.—From funds ‘‘(F) ensure that the list of approved pro- mentary and Secondary Education Act of appropriated under subsection (g), the Sec- viders of supplemental educational services 1965 (20 U.S.C. 6319) is amended— retary is authorized to award grants to local described in subparagraph (C) includes a (1) in subsection (a)(2)— educational agencies experiencing over- choice of providers that have sufficient ca- (A) by redesignating subparagraphs (A) crowding in the schools served by the local pacity to provide effective services for chil- through (C) as clauses (i) through (iii), re- educational agencies, for the construction dren who are limited English proficient and spectively, and indenting as appropriate; and renovation of safe, healthy, high-per- children with disabilities.’’; (B) by striking ‘‘(2) STATE PLAN.—As part’’ formance school buildings. (2) in paragraph (5)(C)— and inserting the following: ‘‘(b) APPLICATION.—Each local educational (A) by striking ‘‘applicable’’; and ‘‘(2) STATE PLAN.— agency desiring a grant under this section (B) by inserting before the period ‘‘, and ‘‘(A) IN GENERAL.—As part’’; and shall submit an application to the Secretary acknowledge in writing that, as an approved (C) by adding at the end the following: at such time, in such manner, and accom- provider in the relevant State educational ‘‘(B) AVAILABILITY OF STATE STANDARDS.— panied by such additional information as the agency program of providing supplemental Each State educational agency shall make Secretary may require. educational services, the provider is deemed available to teachers in the State the high ‘‘(c) PRIORITY.—In awarding grants under to be a recipient of Federal financial assist- objective uniform State standard of evalua- this section, the Secretary shall give pri- ance’’; tion, as described in section 9101(23)(C)(ii), ority to local educational agencies— (3) by redesignating paragraphs (6), (7), (8), for the purpose of meeting the teacher quali- ‘‘(1) who have documented difficulties in (9), (10), (11), and (12) as paragraphs (7), (8), fication requirements established under this meeting the public school choice require- (9), (10), (11), (12), and (13), respectively; section.’’;

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00072 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S179 (2) by redesignating subsections (e), (f), (g), school made adequate yearly progress for the agency of the school’s ability to request a re- (h), (i), (j), (k), and (l) as subsections (f), (g), 2002–2003 school year; and view under this section; and (h), (i), (j), (k), (l), and (m), respectively; (2) consider that evidence before making a (2) not later than 30 days after the date of (3) by inserting after subsection (d) the fol- final determination under subsection (b). the enactment of this section, shall notify lowing: (d) STANDARD OF REVIEW.—In conducting a the public by means of the Department of ‘‘(e) STATE RESPONSIBILITIES.—Each State review under this section, a local edu- Education’s website of the review process es- educational agency shall ensure that local cational agency shall revise, consistent with tablished under this section. educational agencies in the State make the applicable State plan under section 1111 SEC. 422. REVIEW OF ADEQUATE YEARLY available all options described in subpara- of the Elementary and Secondary Education PROGRESS DETERMINATIONS FOR graphs (A) through (C) of subsection (c)(1) to Act of 1965 (20 U.S.C. 6311), the local edu- LOCAL EDUCATIONAL AGENCIES each new or existing paraprofessional for the cational agency’s original determination FOR THE 2002–2003 SCHOOL YEAR. purpose of demonstrating the qualifications that a school did not make adequate yearly (a) IN GENERAL.—The Secretary shall re- of the paraprofessional, consistent with the progress for the 2002–2003 school year if the quire each State educational agency to pro- requirements of this section.’’; and agency finds that the school made such vide each local educational agency in the (4) in subsection (l) (as redesignated by progress, taking into consideration— State with an opportunity to request a re- paragraph (2)), by striking ‘‘subsection (l)’’ (1) the amendments made to part 200 of view of a determination by the State edu- and inserting ‘‘subsection (m)’’. title 34, Code of Federal Regulations (68 Fed. cational agency that the local educational Reg. 68698) (relating to accountability for the (b) DEFINITION OF HIGHLY QUALIFIED TEACH- agency did not make adequate yearly academic achievement of students with the ERS.—Section 9101(23)(B)(ii) is amended— progress for the 2002–2003 school year. most significant cognitive disabilities); or (1) in subclause (I), by striking ‘‘or’’ after (b) APPLICATION OF CERTAIN PROVISIONS.— (2) any regulation or guidance that, subse- the semicolon; Except as inconsistent with, or inapplicable quent to the date of such original determina- (2) in subclause (II), by striking ‘‘and’’ to, this section, the provisions of section 421 tion, was issued by the Secretary relating after the semicolon; and shall apply to review by a State educational to— (3) by adding at the end the following: agency of a determination described in sub- (A) the assessment of limited English pro- ‘‘(III) in the case of a middle school teach- section (a) in the same manner and to the ficient children; er, passing a State-approved middle school same extent as such provisions apply to re- (B) the inclusion of limited English pro- generalist exam when the teacher receives a view by a local educational agency of a de- ficient children as part of the subgroup de- license to teach middle school in the State; termination described in section 421(a). scribed in section 1111(b)(2)(C)(v)(II)(dd) of ‘‘(IV) obtaining a State middle school or SEC. 423. DEFINITIONS. the Elementary and Secondary Education secondary school social studies certificate In this subtitle: Act of 1965 (20 U.S.C. 6311(b)(2)(C)(v)(II)(dd)) that qualifies the teacher to teach history, (1) The term ‘‘adequate yearly progress’’ after such children have obtained English geography, economics, civics, and govern- has the meaning given to that term in sec- proficiency; or ment in middle schools or in secondary tion 1111(b)(2)(C) of the Elementary and Sec- (C) any requirement under section schools, respectively, in the State; or ondary Education Act of 1965 (20 U.S.C. 1111(b)(2)(I)(ii) of the Elementary and Sec- ‘‘(V) obtaining a State middle school or 6311(b)(2)(C)). ondary Education Act of 1965 (20 U.S.C. secondary school science certificate that (2) The term ‘‘local educational agency’’ 6311(b)(2)(I)(ii)). means a local educational agency (as that qualifies the teacher to teach earth science, (e) EFFECT OF REVISED DETERMINATION.— biology, chemistry, and physics in middle term is defined in section 9101 of the Elemen- (1) IN GENERAL.—If pursuant to a review tary and Secondary Education Act of 1965 (20 schools or secondary schools, respectively, in under this section a local educational agency the State; and’’. U.S.C. 7801)) receiving funds under part A of determines that a school made adequate title I of such Act (20 U.S.C. 6311 et seq.). (c) ENSURING HIGHLY QUALIFIED TEACH- yearly progress for the 2002–2003 school year, ERS.— (3) The term ‘‘Secretary’’ means the Sec- upon such determination— retary of Education. (1) REQUIREMENT.—The Secretary of Edu- (A) any action by the Secretary, the State cation shall improve coordination among the (4) The term ‘‘school’’ means an elemen- educational agency, or the local educational tary school or a secondary school (as those teacher quality programs authorized under agency that was taken because of a prior de- the Elementary and Secondary Education terms are defined in section 9101 of the Ele- termination that the school did not make mentary and Secondary Education Act of Act of 1965 (20 U.S.C. 6301 et seq.), the Indi- such progress shall be terminated; and viduals with Disabilities Education Act (20 1965 (20 U.S.C. 7801)) served under part A of (B) any obligations or actions required of title I of such Act (20 U.S.C. 6311 et seq.). U.S.C. 1400 et seq.), the Higher Education the local educational agency or the school Act of 1965 (20 U.S.C. 1001 et seq.), and the (5) The term ‘‘State educational agency’’ because of the prior determination shall means a State educational agency (as that Carl D. Perkins Vocational and Technical cease to be required. Education Act of 1998 (20 U.S.C. 2301 et seq.), term is defined in section 9101 of the Elemen- (2) EXCEPTIONS.—Notwithstanding para- tary and Secondary Education Act of 1965 (20 to provide a unified effort in strengthening graph (1), a determination under this section the American teaching workforce and ensur- U.S.C. 7801)) receiving funds under part A of shall not affect any obligation or action re- title I of such Act (20 U.S.C. 6311 et seq.). ing highly qualified teachers. quired of a local educational agency or Subtitle C—Technical Assistance (2) REPORT.—Not later than 6 months after school under the following: the date of enactment of this Act, the Sec- (A) Section 1116(b)(13) of the Elementary SEC. 451. TECHNICAL ASSISTANCE. retary of Education shall submit a report to and Secondary Education Act of 1965 (20 (a) IN GENERAL.—Part F of title IX of the the relevant committees of Congress, that U.S.C. 6316(b)(13)) (requiring a local edu- Elementary and Secondary Education Act of shall be made available on the website of the cational agency to continue to permit a 1965 (20 U.S.C. 7941) is amended— Department of Education, on efforts to co- child who transferred to another school (1) in the part heading, by inserting ‘‘AND ordinate programs pursuant to paragraph (1). under such section to remain in that school TECHNICAL ASSISTANCE’’ after ‘‘EVALUATIONS’’; Subtitle B—Adequate Yearly Progress until completion of the highest grade in the and Determinations school). (2) by adding at the end the following: ‘‘SEC. 9602. TECHNICAL ASSISTANCE. SEC. 421. REVIEW OF ADEQUATE YEARLY (B) Section 1116(e)(9) of the Elementary PROGRESS DETERMINATIONS FOR and Secondary Education Act of 1965 (as re- ‘‘The Secretary shall ensure that the tech- SCHOOLS FOR THE 2002–2003 designated by section 402(3)) (20 U.S.C. nical assistance provided by, and the re- SCHOOL YEAR. 6316(e)(9)) (requiring a local educational search developed and disseminated through, (a) IN GENERAL.—The Secretary shall re- agency to continue to provide supplemental the Institute of Education Sciences and quire each local educational agency to pro- educational services under such section until other offices or agencies of the Department vide each school served by the agency with the end of the school year). provide educators and parents with the need- an opportunity to request a review of a de- (3) SUBSEQUENT DETERMINATIONS.—In deter- ed information and support for identifying termination by the agency that the school mining whether a school is subject to school and using educational strategies, programs, did not make adequate yearly progress for improvement, corrective action, or restruc- and practices, including strategies, pro- the 2002–2003 school year. turing as a result of not making adequate grams, and practices available through the (b) FINAL DETERMINATION.—Not later than yearly progress, the Secretary, a State edu- clearinghouses supported under the Edu- 30 days after receipt of a request by a school cational agency, or a local educational agen- cation Sciences Reform Act of 2002 (20 U.S.C. for a review under this section, a local edu- cy may not take into account a determina- 9501 et seq.) and other federally supported cational agency shall issue and make pub- tion that the school did not make adequate clearinghouses, that have been successful in licly available a final determination on yearly progress for the 2002–2003 school year improving educational opportunities and whether the school made adequate yearly if such determination was revised under this achievement for all students.’’. progress for the 2002–2003 school year. section and the school received a final deter- (b) TABLE OF CONTENTS.—The table of con- (c) EVIDENCE.—In conducting a review mination of having made adequate yearly tents of the Elementary and Secondary Edu- under this section, a local educational agen- progress for the 2002–2003 school year. cation Act of 1965 (20 U.S.C. 6301 note) is cy shall— (f) NOTIFICATION.—The Secretary— amended by inserting after the item relating (1) allow the principal of the school in- (1) shall require each State educational to section 9601 the following: volved to submit evidence on whether the agency to notify each school served by the ‘‘Sec. 9602. Technical assistance.’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00073 Fmt 0637 Sfmt 0655 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S180 CONGRESSIONAL RECORD — SENATE January 24, 2005 TITLE V—IMPROVING ASSESSMENT AND (ii) graduated on time by progressing 1 ‘‘(2) Developing alternate assessments that ACCOUNTABILITY grade per academic year; represents of meet the requirements of section 1111 for SEC. 501. GRANTS FOR INCREASING DATA CAPAC- (B) the total number of students who en- students who are limited English proficient, ITY FOR PURPOSES OF ASSESSMENT tered the secondary school in the entry level including— AND ACCOUNTABILITY. academic year applicable to the graduating ‘‘(A) the alignment of such assessments (a) PROGRAM AUTHORIZED.—From funds ap- students. with State student academic achievement propriated for a fiscal year, the Secretary (2) SECRETARY.—The term ‘‘Secretary’’ standards and State academic content stand- may award grants, on a competitive basis, to means the Secretary of Education. ards for all students; State educational agencies— (3) STATE EDUCATIONAL AGENCY AND LOCAL ‘‘(B) the development of parallel native (1) to enable the State educational agen- EDUCATIONAL AGENCY.—The terms ‘‘State language assessments or linguistically modi- cies to develop or increase the capacity of educational agency’’ and ‘‘local educational fied assessments for limited English pro- data systems for assessment and account- agency’’ have the meanings given such terms ficient students that meet the requirements ability purposes, including the collection of in section 9101 of the Elementary and Sec- of section 1111(b)(3)(C)(ix)(III); graduation rates; and ondary Education Act of 1965 (20 U.S.C. 7801). ‘‘(C) the development of an implementa- (g) AUTHORIZATION OF APPROPRIATIONS.— (2) to award subgrants to increase the ca- tion plan for pilot tests for such assess- There are authorized to be appropriated to pacity of local educational agencies to up- ments, in order to determine the level of ap- carry out this section $100,000,000 for fiscal grade, create, or manage longitudinal data propriateness and feasibility of full-scale ad- systems for the purpose of measuring stu- year 2006, and such sums as may be necessary for each of the 2 succeeding fiscal years. ministration; and dent academic progress and achievement. ‘‘(D) activities that provide for the reten- (b) STATE APPLICATION.—Each State edu- SEC. 502. GRANTS FOR ASSESSMENT OF CHIL- tion of all feasible standardized features in cational agency desiring a grant under this DREN WITH DISABILITIES AND CHIL- the alternate assessments. section shall submit an application to the DREN WHO ARE LIMITED ENGLISH ‘‘(3) Developing, modifying, or revising Secretary at such time, in such manner, and PROFICIENT. (a) GRANTS FOR ASSESSMENT OF CHILDREN State policies and criteria for appropriate containing such information as the Sec- WITH DISABILITIES AND CHILDREN WHO ARE accommodations to ensure the full participa- retary may require. LIMITED ENGLISH PROFICIENT.—Part E of title tion of students who are limited English pro- (c) STATE USE OF FUNDS.—Each State edu- cational agency that receives a grant under I of the Elementary and Secondary Edu- ficient and students with disabilities in this section shall use— cation Act of 1965 (20 U.S.C. 6491 et seq.) is State academic assessments, including— amended by adding at the end the following: (1) not more than 20 percent of the grant ‘‘(A) developing a plan to ensure that as- funds for the purpose of— ‘‘SEC. 1505. GRANTS FOR ASSESSMENT OF CHIL- sessments provided with accommodations DREN WITH DISABILITIES AND CHIL- are fully included and integrated into the ac- (A) increasing the capacity of, or creating, DREN WHO ARE LIMITED ENGLISH State databases to collect, disaggregate, and countability system, for the purpose of mak- PROFICIENT. ing the determinations of adequate yearly report information related to student ‘‘(a) GRANTS AUTHORIZED.—From amounts progress required under section 1116; achievement, enrollment, and graduation authorized to be appropriated under sub- ‘‘(B) ensuring the validity, reliability, and rates for assessment and accountability pur- section (e) for a fiscal year, the Secretary appropriateness of such accommodations, poses; and shall award grants, on a competitive basis, (B) reporting, on an annual basis, for the to State educational agencies, or to con- such as— elementary schools and secondary schools sortia of State educational agencies, to en- ‘‘(i) a modification to the presentation or within the State, on— able the State educational agencies or con- format of the assessment; (i) the enrollment data from the beginning sortia to collaborate with institutions of ‘‘(ii) the use of assistive devices; of the academic year; higher education, research institutions, or ‘‘(iii) an extension of the time allowed for (ii) the enrollment data from the end of the other organizations— testing; academic year; and ‘‘(1) to design and improve State academic ‘‘(iv) an alteration of the test setting or (iii) the twelfth grade graduation rates; assessments for students who are limited procedures; and English proficient and students with disabil- ‘‘(v) the administration of portions of the (2) not less than 80 percent of the grant ities; and test in a method appropriate for the level of funds to award subgrants to local edu- ‘‘(2) to ensure the most accurate, valid, and language proficiency of the test taker; cational agencies within the State to enable reliable means to assess academic content ‘‘(vi) the use of a glossary or dictionary; the local educational agencies to carry out standards and student academic achieve- and the authorized activities described in sub- ment standards for students who are limited ‘‘(vii) the use of a linguistically modified section (e). English proficient and students with disabil- assessment; (d) LOCAL APPLICATION.—Each local edu- ities. ‘‘(C) ensuring that State policies and cri- cational agency desiring a subgrant under ‘‘(b) AUTHORIZED ACTIVITIES.—A State edu- teria for appropriate accommodations take this section shall submit an application to cational agency or consortium that receives into account the form or program of instruc- the State educational agency at such time, a grant under this section shall use the grant tion provided to students, including the level in such manner, and containing such infor- funds to carry out 1 or more of the following of difficulty, reliability, cultural difference, mation as the State educational agency may activities: and content equivalence of such form or pro- require. Each such application shall include, ‘‘(1) Developing alternate assessments for gram; at a minimum, a demonstration of the local students with disabilities, consistent with ‘‘(D) ensuring that such policies are con- educational agency’s ability to put a longi- section 1111 and the amendments made on sistent with the standards prepared by the tudinal data system in place. December 9, 2003, to part 200 of title 34, Code Joint Committee on Standards for Edu- (e) LOCAL AUTHORIZED ACTIVITIES.—Each of Federal Regulations (68 Fed. Reg. 68698) cational and Psychological Testing of the local educational agency that receives a (relating to accountability for the academic American Educational Research Association, subgrant under this section shall use the achievement of students with the most sig- the American Psychological Association, subgrant funds to increase the capacity of nificant cognitive disabilities), including— and the National Council on Measurement in the local educational agency to upgrade or ‘‘(A) the alignment of such assessments, as Education; and manage longitudinal data systems consistent appropriate and consistent with such amend- ‘‘(E) developing a plan for providing train- with the uses in subsection (c)(1), by— ments, with— ing on the use of accommodations to school (1) purchasing database software or hard- ‘‘(i) State student academic achievement instructional staff, families, students, and ware; standards and State academic content stand- other appropriate parties. (2) hiring additional staff for the purpose of ards for all students; or ‘‘(4) Developing universally designed as- managing such data; ‘‘(ii) alternate State student academic sessments that can be accessible to all stu- (3) providing professional development or achievement standards that reflect the in- dents, including— additional training for such staff; and tended instructional construct for students ‘‘(A) examining test item or test perform- (4) providing professional development or with disabilities; ance for students with disabilities and stu- training for principals and teachers on how ‘‘(B) activities to ensure that such assess- dents who are limited English proficient, to to effectively use such data to implement in- ments do not reflect the disabilities, or asso- determine the extent to which the test item structional strategies to improve student ciated characteristics, of the students that or test is universally designed; achievement and graduation rates. are extraneous to the intent of the measure- ‘‘(B) using think aloud and cognitive lab- (f) DEFINITIONS.—In this section: ment; oratory procedures, as well as item statis- (1) GRADUATION RATE.—The term ‘‘gradua- ‘‘(C) the development of an implementa- tics, to identify test items that may pose tion rate’’ means the percentage that— tion plan for pilot tests for such assess- particular problems for students with dis- (A) the total number of students who— ments, in order to determine the level of ap- abilities or students who are limited English (i) graduate from a secondary school with propriateness and feasibility of full-scale ad- proficient; a regular diploma (which shall not include ministration; and ‘‘(C) developing and implementing a plan the recognized equivalent of a secondary ‘‘(D) activities that provide for the reten- to ensure that developers and reviewers of school diploma or an alternative degree) in tion of all feasible standardized features in test items are trained in the principles of an academic year; and the alternate assessments. universal design; and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00074 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S181 ‘‘(D) developing computer-based applica- ‘‘SEC. 1506. REPORTS ON STUDENT ENROLLMENT TITLE VII—PROVIDING A ROADMAP FOR tions of universal design principles. AND GRADUATION RATES. FIRST GENERATION COLLEGE FOR STU- ‘‘(c) APPLICATION.—Each State educational ‘‘(a) IN GENERAL.—The Secretary shall col- DENTS agency, or consortium of State educational lect from each State educational agency, SEC. 701. EXPANSION OF TRIO AND GEARUP. agencies, desiring to apply for a grant under local educational agency, and school, on an The Higher Education Act of 1965 (20 U.S.C. this section shall submit an application to annual basis, the following data: 1001 et seq.) is amended— the Secretary at such time, in such manner, ‘‘(1) The number of students enrolled in (1) in section 402A(f), by striking and containing such information as the Sec- each of grades 7 through 12 at the beginning ‘‘$700,000,000 for fiscal year 1999’’ and insert- retary may require, including— of the most recent school year. ing ‘‘$1,000,000,000 for fiscal year 2006’’; and ‘‘(1) information regarding the institutions ‘‘(2) The number of students enrolled in (2) by striking section 404H and inserting of higher education, research institutions, or each of grades 7 through 12 at the end of the the following: other organizations that are collaborating most recent school year. ‘‘SEC. 404H. AUTHORIZATION OF APPROPRIA- with the State educational agency or consor- ‘‘(3) The graduation rate for the most re- TIONS. tium, in accordance with subsection (a); cent school year. ‘‘There are authorized to be appropriated ‘‘(2) in the case of a consortium of State ‘‘(4) The data described in paragraphs (1) to carry out this chapter $400,000,000 for fis- educational agencies, the designation of 1 through (3), disaggregated by the groups of cal year 2006 and such sums as may be nec- State educational agency as the fiscal agent students described in section essary for each of the 4 succeeding fiscal for the receipt of grant funds; 1111(b)(2)(C)(v)(II). years.’’. ‘‘(3) a description of the process and cri- ‘‘(b) ANNUAL REPORT.—The Secretary shall TITLE VIII—COLLEGE TUITION RELIEF teria by which the State educational agency report the information collected under sub- FOR STUDENTS AND THEIR FAMILIES will identify students that are unable to par- section (a) on an annual basis.’’. THROUGH PELL GRANTS ticipate in general State content assess- (b) TABLE OF CONTENTS.—The table of con- SEC. 801. PELL GRANTS TAX TABLES HOLD HARM- ments and are eligible to take alternate as- tents of the Elementary and Secondary Edu- LESS. sessments, consistent with the amendments cation Act of 1965 (as amended by section Notwithstanding any other provision of made to part 200 of title 34, Code of Federal 502(b)) (20 U.S.C. 6301 note) is amended by in- law, the annual updates to the allowance for Regulations (68 Fed. Reg. 68698); serting after the item relating to section 1505 State and other taxes in the tables used in ‘‘(4) in the case of a State educational the following: the Federal Need Analysis Methodology to agency or consortium carrying out the activ- determine a student’s expected family con- ity described in subsection (b)(1)(A), a de- ‘‘Sec. 1506. Reports on student enroll- tribution for the award year 2005–2006 under scription of how the State educational agen- ment and graduation rates.’’. part F of title IV of the Higher Education cy plans to fulfill the requirement of sub- SEC. 504. CIVIL RIGHTS. Act of 1965 (20 U.S.C. 1087kk et seq.), pub- section (b)(1)(A); Section 9534 of the Elementary and Sec- lished in the Federal Register on Thursday, ‘‘(5) in the case of a State educational ondary Education Act of 1965 (20 U.S.C. 7914) December 23, 2004 (69 Fed. Reg. 76926), shall agency or consortium carrying out the ac- is amended— not apply to a student to the extent the up- tivities described in paragraphs (1), (2), and (1) by redesignating subsections (a) and (b) dates will reduce the amount of Federal stu- (4) of subsection (b), information regarding as subsections (b) and (c), respectively; and dent assistance for which the student is eli- the proposed techniques for the development (2) by inserting before subsection (b) (as re- gible. of alternate assessments, including a de- designated by paragraph (1)) the following: SEC. 802. SENSE OF THE SENATE REGARDING IN- scription of the technical adequacy of, tech- CREASING THE MAXIMUM PELL ‘‘(a) PROHIBITION OF DISCRIMINATION.—Dis- nical aspects of, and scoring for such assess- GRANT. crimination on the basis of race, color, reli- (a) FINDINGS.—The Senate makes the fol- ments; gion, sex (except as otherwise permitted ‘‘(6) a plan for providing training for school lowing findings: under title IX of the Education Amendments (1) Increasing the percentage of individuals instructional staff, families, students, and of 1972), national origin, or disability in any other appropriate parties on the use of alter- who obtain a postsecondary education has program funded under this Act is prohib- become increasingly important, not just to nate assessments; and ited.’’. ‘‘(7) information on how the scores of stu- the individual beneficiary, but to the Nation dents participating in alternate assessments TITLE VI—SENSE OF THE SENATE RE- as a whole. The growth and continued expan- will be reported to the public and to parents. GARDING FUNDING FOR ELEMENTARY sion of the Nation’s economy is heavily de- ‘‘(d) EVALUATION AND REPORTING REQUIRE- AND SECONDARY EDUCATION pendent on an educated and highly skilled workforce. MENTS.—Each State educational agency re- SEC. 601. SENSE OF THE SENATE. ceiving a grant under this section shall sub- (2) The opportunity to gain a postsec- (a) FINDINGS.—The Senate finds the fol- mit an annual report to the Secretary de- ondary education also is important to the scribing the activities carried out under the lowing: Nation as a means to help advance the Amer- grant and the result of such activities, in- (1) Congress enacted, with bipartisan sup- ican ideals of progress and equality. cluding— port, and the President signed into law the (3) The Federal Government plays an in- ‘‘(1) details on the effectiveness of the ac- No Child Left Behind Act of 2001 (Public Law valuable role in making student financial aid tivities supported under this section in help- 107–210; 115 Stat. 1425), that reauthorized the available to ensure that qualified students ing students with disabilities, or students Elementary and Secondary Education Act of are able to attend college, regardless of their who are limited English proficient, better 1965 (20 U.S.C. 6301 et seq.). The new law re- financial means. Since the inception of the participate in State assessment programs; quired States to set high standards for learn- Pell Grant program in 1973, nearly 80,000,000 and ing and required schools to implement re- grants have helped low- and middle-income ‘‘(2) information on the change in achieve- forms to help improve student achievement. students go to college, enrich their lives, and ment, if any, of students with disabilities In return, Congress and the President become productive members of society. and students who are limited English pro- pledged to make sure schools would have re- (4) Nationwide, almost 63 percent of sec- ficient, as a result of a more accurate assess- sources to carry out the reforms as called for ondary school graduates continue on to high- ment of such students. in the new law. er education immediately after completing ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— (2) $22,750,000,000 is needed to fund part A of secondary school. This degree of college par- There are authorized to be appropriated to title I of the Elementary and Secondary Edu- ticipation would not exist without the Fed- carry out this section $50,000,000 for fiscal cation Act of 1965 (20 U.S.C. 6311 et seq.) in eral investment in student aid, especially year 2006, and such sums as may be necessary fiscal year 2006, as promised pursuant to the the Pell Grant program. More than 4,000,000 for each of the 2 succeeding fiscal years.’’. No Child Left Behind Act of 2001 (Public Law low- and middle-income students receive Pell (b) TABLE OF CONTENTS.—The table of con- 107–210; 115 Stat. 1425). Grants; 95 percent of whom have a family in- tents of the Elementary and Secondary Edu- (3) $25,000,000,000 is needed to fund part A of come of not more than $40,000. cation Act of 1965 (20 U.S.C. 6301 note) is title I of the Elementary and Secondary Edu- (5) In the next 10 years, the number of un- amended by inserting after the item relating cation Act of 1965 (20 U.S.C. 6311 et seq.) in dergraduate students enrolled in the Na- to section 1504 the following: fiscal year 2007, as promised pursuant to the tion’s colleges and universities will increase ‘‘Sec. 1505. Grants for assessment of chil- No Child Left Behind Act of 2001 (Public Law by 15 percent to more than 15,000,000 stu- dren with disabilities and chil- 107–210; 115 Stat. 1425). dents. Many of these students will be the dren who are limited English (b) SENSE OF THE SENATE.—It is the sense first in their families to attend college. The proficient.’’. of the Senate that— continued investment in the Pell Grant pro- SEC. 503. REPORTS ON STUDENT ENROLLMENT (1) it is in the best interest of the Nation gram is essential if college is to remain an AND GRADUATION RATES. that all students have access to a high-qual- achievable part of the American dream. (a) STUDENT ENROLLMENT AND GRADUATION ity elementary and secondary education; and (6) Increasing the maximum Pell Grant to RATES.—Part E of title I of the Elementary (2) part A of title I of the Elementary and $5,100 would allow more than 430,000 addi- and Secondary Education Act of 1965 (as Secondary Education Act of 1965 (20 U.S.C. tional students to benefit from the program. amended by section 502) (20 U.S.C. 6491 et 6311 et seq.) should be funded as promised (7) Increasing the maximum Pell Grant to seq.) is amended by adding at the end the fol- pursuant to the No Child Left Behind Act of $5,100 would result in 200,000 new Pell Grant lowing: 2001 (Public Law 107–210; 115 Stat. 1425). recipients.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00075 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S182 CONGRESSIONAL RECORD — SENATE January 24, 2005 (8) Pell Grant recipients are more likely to 1, 2006,’’ and inserting ‘‘or refunded on or (aa) in a program under part B or D of title graduate with student loan debt and to after the date of enactment of the Taxpayer- IV of the Higher Education Act of 1965 (20 amass more debt than other student bor- Teacher Protection Act of 2004,’’; and U.S.C. 1071 et seq., 1087a et seq.); or rowers. Increasing the maximum Pell Grant (B) by striking clause (v) and inserting the (bb) with any particular lender. to $5,100 will help remedy this disparity. following: (IV) The nonprofit lender certifies that the (b) SENSE OF THE SENATE.—It is the sense ‘‘(v) Notwithstanding clauses (i) and (ii), nonprofit lender uses the payment received of the Senate that— the quarterly rate of the special allowance pursuant to subparagraph (A) to confer grant (1) the maximum Pell Grant should be in- shall be the rate determined under subpara- or scholarship benefits to students who are creased to $5,100 during award year 2006–2007; graph (A), (E), (F), (G), (H), or (I) of this eligible to receive Federal Pell Grants under and paragraph, or paragraph (4), as the case may subpart 1 of part A of title IV of the Higher (2) the maximum Pell Grant amount set by be, for loans— Education Act of 1965 (20 U.S.C. 1070a et Congress should be the amount eligible stu- ‘‘(I) originated, transferred, or purchased seq.). dents receive. on or after the date of enactment of the Tax- (V) The nonprofit lender is subject to pub- SEC. 803. ESTABLISHMENT OF A PELL DEM- payer-Teacher Protection Act of 2004; lic oversight through either a State charter, ONSTRATION PROGRAM. ‘‘(II) financed by an obligation that has or through not less than 50 percent of the (a) FINDINGS.—Congress finds that: matured, been retired, or defeased on or after nonprofit lender’s board of directors con- (1) A student remains eligible to receive a the date of enactment of the Taxpayer- sisting of State appointed representatives. Federal Pell Grant as long as the student is Teacher Protection Act of 2004; (VI) The nonprofit lender does not engage in the marketing of the relative value of pro- income-eligible and has not received a bach- ‘‘(III) which the special allowance was de- grams under part B of title IV of the Higher elor’s degree. termined under such subparagraphs or para- Education Act of 1965 as compared to pro- (2) By encouraging persistence and degree graph, as the case may be, on or after the grams under part D of title IV of the Higher acquisition in a timely manner, the Federal date of enactment of the Taxpayer-Teacher Education Act of 1965, nor does the nonprofit Government, in effect, saves money— Protection Act of 2004; lender engage in the marketing of loans or (A) by reducing the courses that do not ‘‘(IV) for which the maturity date of the lead to a degree; and programs offered by for-profit lenders. This obligation from which funds were obtained subclause shall not be construed to prohibit (B) by helping students get the financial for such loans was extended on or after the benefits of a college degree as soon as pos- the nonprofit lender from conferring basic date of enactment of the Taxpayer-Teacher information on lenders under part B of title sible. Protection Act of 2004; or (b) PELL DEMONSTRATION PROGRAM.— IV of the Higher Education Act of 1965 and ‘‘(V) sold or transferred to any other hold- the related benefits offered by such nonprofit (1) AUTHORIZATION.—The Secretary of Edu- er on or after the date of enactment of the cation shall establish a demonstration pro- lenders. Taxpayer-Teacher Protection Act of 2004.’’. gram to facilitate the ability of low-income TITLE X—MAKING COLLEGE AFFORDABLE (2) RULE OF CONSTRUCTION.—Nothing in the students to complete the students’ degree FOR ALL STUDENTS amendment made by paragraph (1) shall be within 150 percent of the time expected to construed to abrogate a contractual agree- SEC. 1001. EXPANSION OF DEDUCTION FOR HIGH- complete such degree. ER EDUCATION EXPENSES. ment between the Federal Government and a (2) GRANTS.—The Secretary of Education (a) AMOUNT OF DEDUCTION.—Subsection (b) student loan provider. shall award competitive grants to institu- of section 222 of the Internal Revenue Code tions of higher education to enable students (b) AVAILABLE FUNDS FROM REDUCED EX- of 1986 (relating to deduction for qualified who are eligible to receive Federal Pell PENDITURES.— tuition and related expenses) is amended to Grants under subpart 1 of part A of title IV (1) IN GENERAL.—Any funds available to the read as follows: of the Higher Education Act of 1965 (20 U.S.C. Secretary of Education as a result of reduced ‘‘(b) LIMITATIONS.— 1070a et seq.) to enroll in courses in the sum- expenditures under section 438 of the Higher ‘‘(1) DOLLAR LIMITATIONS.— mer at such institutions to expedite the stu- Education Act of 1965 (20 U.S.C. 1087–1) se- ‘‘(A) IN GENERAL.—Except as provided in dents’ graduation from the institutions. cured by the enactment of subsection (a) paragraph (2), the amount allowed as a de- (3) AUTHORIZATION OF APPROPRIATIONS.— shall first be used by the Secretary for loan duction under subsection (a) with respect to There is authorized to be appropriated to cancellation and loan forgiveness for teach- the taxpayer for any taxable year shall not carry out this subsection $500,000,000 for the ers under sections 428J and 460 of the Higher exceed the applicable dollar limit. ‘‘(B) APPLICABLE DOLLAR LIMIT.—The appli- period of fiscal years 2006 through 2008. Education Act of 1965 (20 U.S.C. 1078–10, cable dollar limit for any taxable year shall 1087j), as amended by section 902 of this Act. TITLE IX—TUITION FREE COLLEGE FOR be determined as follows: MATHEMATICS, SCIENCE, AND SPECIAL (2) REMAINING FUNDS.— EDUCATION TEACHERS (A) IN GENERAL.—Any such funds remain- Applicable ‘‘ ing after carrying out paragraph (1) shall be Taxable year: dollar amount: SEC. 901. PURPOSE. 2005 and 2006 ...... $6,000 It is the purpose of this title to make pub- used by the Secretary of Education to make 2007 and 2008 ...... $8,000 lic college tuition free for future mathe- payments to each nonprofit lender in an 2009 and 2010 ...... $10,000 matics, science, and special education teach- amount that bears the same relation to the 2011 and thereafter ...... $12,000. ers and to provide additional assistance to remaining funds as the amount the nonprofit ‘‘(2) LIMITATION BASED ON MODIFIED AD- students eligible to receive a Federal Pell lender receives for fiscal year 2005 under sec- JUSTED GROSS INCOME.— Grant under subpart 1 of part A of title IV of tion 438(b)(2)(B) of the Higher Education Act ‘‘(A) IN GENERAL.—The amount which the Higher Education Act of 1965 (20 U.S.C. of 1965 (20 U.S.C. 1087–1(b)(2)(B)) bears to the would (but for this paragraph) be taken into 1070a et seq.). total amount received by nonprofit lenders account under subsection (a) shall be reduced SEC. 902. TUITION FREE COLLEGE FOR MATHE- for fiscal year 2005 under such section. (but not below zero) by the amount deter- MATICS, SCIENCE, AND SPECIAL (B) DEFINITION OF NONPROFIT LENDER.—In mined under subparagraph (B). EDUCATION TEACHERS. this paragraph the term ‘‘nonprofit lender’’ ‘‘(B) AMOUNT OF REDUCTION.—The amount (a) ADDITIONAL AMOUNTS FOR TEACHERS IN means an eligible lender (as defined in sec- determined under this subparagraph equals MATHEMATICS, SCIENCE, AND SPECIAL EDU- tion 435(d) of the Higher Education Act of the amount which bears the same ratio to CATION.— 1965 (20 U.S.C.1085(d)) that— the amount which would be so taken into ac- (1) FFEL LOANS.—Section 428J(c)(3) of the (i) is an organization described in section count as— Higher Education Act of 1965 (20 U.S.C. 1078– 501(c)(3) of the Internal Revenue Code of 1986; ‘‘(i) the excess of— 10(c)(3)) is amended by striking ‘‘$17,500’’ and (ii) is a nonprofit entity as defined by ap- ‘‘(I) the taxpayer’s modified adjusted gross inserting ‘‘$23,000’’. plicable State law; and income for such taxable year, over (2) DIRECT LOANS.—Section 460(c)(3) of the (iii) meets the following requirements: ‘‘(II) $65,000 ($130,000 in the case of a joint Higher Education Act of 1965 (20 U.S.C. (I) The nonprofit lender does not confer a return), bears to 1087j(c)(3)) is amended by striking ‘‘$17,500’’ salary or benefits to any employee of the ‘‘(ii) $15,000 ($30,000 in the case of a joint re- and inserting ‘‘$23,000’’. nonprofit lender in an amount that is in ex- turn). (b) EFFECTIVE DATE.—The amendments cess of the salary and benefits provided to ‘‘(C) MODIFIED ADJUSTED GROSS INCOME.— made by this section shall apply only with the Secretary of Education by the Depart- For purposes of this paragraph, the term respect to eligible individuals who are new ment of Education. ‘modified adjusted gross income’ means the borrowers on or after October 1, 1998. (II) The nonprofit lender does not maintain adjusted gross income of the taxpayer for the SEC. 903. OFFSET FOR TUITION FREE COLLEGE an ongoing relationship whereby the non- taxable year determined— FOR MATHEMATICS, SCIENCE, AND profit lender passes on revenue directly or ‘‘(i) without regard to this section and sec- SPECIAL EDUCATION TEACHERS. indirectly through lease, securitization, re- tions 199, 911, 931, and 933, and (a) SPECIAL ALLOWANCES.— sale, or any other financial instrument to a ‘‘(ii) after the application of sections 86, (1) IN GENERAL.—Section 438(b)(2)(B) of the for-profit entity or to shareholders. 135, 137, 219, 221, and 469. Higher Education Act of 1965 (20 U.S.C. 1087– (III) The nonprofit lender does not offer For purposes of the sections referred to in 1(b)(2)(B)) is amended— benefits to a borrower in a manner directly clause (ii), adjusted gross income shall be de- (A) in clause (iv), by striking ‘‘or refunded or indirectly predicated on such borrower’s termined without regard to the deduction al- after September 30, 2004, and before January participation— lowed under this section.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00076 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S183

‘‘(D) INFLATION ADJUSTMENTS.— year in which the taxable year begins, by (A) by striking ‘‘section 25A(g)(2)’’ in para- ‘‘(i) IN GENERAL.—In the case of any tax- substituting ‘2004’ for ‘1992’. graph (2)(B) and inserting ‘‘section 36(g)(2)’’, able year beginning in a calendar year after ‘‘(D) ROUNDING.—If any amount as adjusted (B) by striking ‘‘section 25A(f)(2)’’ in the 2005, both of the dollar amounts in subpara- under subparagraph (C) is not a multiple of matter following paragraph (2)(B) and insert- graph (B)(i)(II) shall be increased by an $50, such amount shall be rounded to the ing ‘‘section 36(f)(2)’’, and amount equal to— nearest multiple of $50. (C) by striking ‘‘section 25A(b)(3)’’ in para- ‘‘(I) such dollar amount, multiplied by ‘‘(c) DEPENDENTS NOT ELIGIBLE FOR CRED- graph (3) and inserting ‘‘section 36(b)(3)’’. ‘‘(II) the cost-of-living adjustment deter- IT.—No credit shall be allowed by this sec- (7) Section 222 of such Code is amended— mined under section 1(f)(3) for the calendar tion to an individual for the taxable year if (A) by striking ‘‘section 25A’’ in subpara- year in which the taxable year begins, by a deduction under section 151 with respect to graph (A) of subsection (c)(2) and inserting substituting ‘calendar year 2004’ for ‘cal- such individual is allowed to another tax- ‘‘section 36’’, endar year 1992’ in subparagraph (B) thereof. payer for the taxable year beginning in the (B) by striking ‘‘section 25A(f)’’ in sub- ‘‘(ii) ROUNDING.—If any amount as adjusted calendar year in which such individual’s tax- section (d)(1) and inserting ‘‘section 36(f)’’, under clause (i) is not a multiple of $50, such able year begins. and amount shall be rounded to the nearest mul- ‘‘(d) LIMIT ON PERIOD CREDIT ALLOWED.—A (C) by striking ‘‘section 25A(g)(2)’’ in sub- tiple of $50.’’. credit shall be allowed under this section section (d)(1) and inserting ‘‘section (b) QUALIFIED TUITION AND RELATED EX- only with respect to interest paid on any 36(g)(2)’’. PENSES OF ELIGIBLE STUDENTS.— qualified education loan during the first 60 (8) Section 529 of such Code is amended— (1) IN GENERAL.—Section 222(a) of the Inter- months (whether or not consecutive) in (A) by striking ‘‘section 25A(g)(2)’’ in sub- nal Revenue Code of 1986 (relating to allow- which interest payments are required. For clause (I) of subsection (c)(3)(B)(v) and in- ance of deduction) is amended by inserting purposes of this paragraph, any loan and all serting ‘‘section 36(g)(2)’’, ‘‘of eligible students’’ after ‘‘expenses’’. refinancings of such loan shall be treated as (B) by striking ‘‘section 25A’’ in subclause (2) DEFINITION OF ELIGIBLE STUDENT.—Sec- 1 loan. (II) of subsection (c)(3)(B)(v) and inserting tion 222(d) of such Code (relating to defini- ‘‘(e) DEFINITIONS.—For purposes of this sec- ‘‘section 36’’, and tions and special rules) is amended by redes- tion— (C) by striking ‘‘section 25A(b)(3)’’ in ignating paragraphs (2) through (6) as para- ‘‘(1) QUALIFIED EDUCATION LOAN.—The term clause (i) of subsection (e)(3)(B) and inserting graphs (3) through (7), respectively, and by ‘qualified education loan’ has the meaning ‘‘section 36(b)(3)’’. inserting after paragraph (1) the following given such term by section 221(d)(1). (9) Section 530 of such Code is amended— new paragraph: ‘‘(2) DEPENDENT.—The term ‘dependent’ has (A) by striking ‘‘section 25A(g)(2)’’ in sub- ‘‘(2) ELIGIBLE STUDENT.—The term ‘eligible the meaning given such term by section 152. clause (I) of subsection (d)(2)(C)(i) and insert- student’ has the meaning given such term by ‘‘(f) SPECIAL RULES.— ing ‘‘section 36(g)(2)’’, section 36(b)(3).’’. ‘‘(1) DENIAL OF DOUBLE BENEFIT.—No credit (B) by striking ‘‘section 25A’’ in subclause (c) DEDUCTION MADE PERMANENT.—Title IX shall be allowed under this section for any (II) of subsection (d)(2)(C)(i) and inserting of the Economic Growth and Tax Relief Rec- amount taken into account for any deduc- ‘‘section 36’’, and onciliation Act of 2001 (relating to sunset of tion under any other provision of this chap- (C) by striking ‘‘section 25A(g)(2)’’ in provisions of such Act) shall not apply to the ter. clause (iii) of subsection (d)(4)(B) and insert- amendments made by section 431 of such ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE- ing ‘‘section 36(g)(2)’’. Act. TURN.—If the taxpayer is married at the (10) Subsection (e) of section 6050S of such (d) EFFECTIVE DATE.—The amendments close of the taxable year, the credit shall be Code is amended by striking ‘‘section 25A’’ made by this section shall apply to payments allowed under subsection (a) only if the tax- and inserting ‘‘section 36’’. made in taxable years beginning after De- payer and the taxpayer’s spouse file a joint (11) Subparagraph (J) of section 6213(g)(2) cember 31, 2004. return for the taxable year. of such Code is amended by striking ‘‘section SEC. 1002. CREDIT FOR INTEREST ON HIGHER ‘‘(3) MARITAL STATUS.—Marital status shall 25A(g)(1)’’ and inserting ‘‘section 36(g)(1)’’. EDUCATION LOANS. be determined in accordance with section (12) Paragraph (2) of section 1324(b) of title (a) IN GENERAL.—Subpart A of part IV of 7703.’’. 31, United States Code, is amended by insert- subchapter A of chapter 1 of the Internal (b) CONFORMING AMENDMENT.—The table of ing before the period ‘‘or from section 36 of Revenue Code of 1986 (relating to nonrefund- sections for subpart A of part IV of sub- such Code’’. able personal credits) is amended by insert- chapter A of chapter 1 of the Internal Rev- (13) The table of sections for subpart C of ing after section 25B the following new sec- enue Code of 1986 is amended by inserting part IV of subchapter A of chapter 1 of the tion: after the item relating to section 25B the fol- Internal Revenue Code of 1986 is amended by ‘‘SEC. 25C. INTEREST ON HIGHER EDUCATION lowing new item: LOANS. striking the item relating to section 36 and inserting the following: ‘‘(a) ALLOWANCE OF CREDIT.—In the case of ‘‘Sec. 25C. Interest on higher education an individual, there shall be allowed as a loans.’’. ‘‘Sec. 36. Hope and Lifetime Learning credit against the tax imposed by this chap- (c) EFFECTIVE DATE.—The amendments credits. ter for the taxable year an amount equal to made by this section shall apply to any ‘‘Sec. 37. Overpayments of tax.’’. the interest paid by the taxpayer during the qualified education loan (as defined in sec- (14) The table of sections for subpart A of taxable year on any qualified education loan. tion 25C(e)(1) of the Internal Revenue Code of such part IV is amended by striking the item ‘‘(b) MAXIMUM CREDIT.— 1986, as added by this section) incurred on, relating to section 25A. ‘‘(1) IN GENERAL.—Except as provided in before, or after the date of the enactment of (c) EFFECTIVE DATE.—The amendments paragraph (2), the credit allowed by sub- this Act, but only with respect to any loan made by this section shall apply to taxable section (a) for the taxable year shall not ex- interest payment due after December 31, years beginning after December 31, 2004. ceed $1,500. 2004. By Mr. KENNEDY (for himself, ‘‘(2) LIMITATION BASED ON MODIFIED AD- SEC. 1003. HOPE AND LIFETIME LEARNING CRED- JUSTED GROSS INCOME.— ITS TO BE REFUNDABLE. Mr. REID, Ms. STABENOW, Mr. ‘‘(A) IN GENERAL.—If the modified adjusted (a) CREDIT TO BE REFUNDABLE.—Section CORZINE, Mr. SCHUMER, Ms. MI- gross income of the taxpayer for the taxable 25A of the Internal Revenue Code of 1986 (re- KULSKI, Mr. AKAKA, Mr. INOUYE, year exceeds $50,000 ($100,000 in the case of a lating to Hope and Lifetime Learning cred- Mr. LEVIN, Mr. KERRY, Mr. LAU- joint return), the amount which would (but its) is hereby moved to subpart C of part IV TENBERG, Mr. ROCKEFELLER, Mr. for this paragraph) be allowable as a credit of subchapter A of chapter 1 of such Code (re- DODD, Mr. PRYOR, and Mr. DUR- under this section shall be reduced (but not lating to refundable credits) and inserted BIN): below zero) by the amount which bears the after section 35. S. 16. A bill to reduce to the cost of same ratio to the amount which would be so (b) TECHNICAL AMENDMENTS.— allowable as such excess bears to $20,000 (1) Section 36 of such Code is redesignated quality health care coverage and im- ($40,000 in the case of a joint return). as section 37. prove the availability of health care ‘‘(B) MODIFIED ADJUSTED GROSS INCOME.— (2) Section 25A of such Code (as moved by coverage for all Americans; to the The term ‘modified adjusted gross income’ subsection (a)) is redesignated as section 36. Committee on Finance. means adjusted gross income determined (3) Paragraph (1) of section 36(a) of such Mr. KENNEDY. Mr. President, it’s an without regard to sections 199, 222, 911, 931, Code (as redesignated by paragraph (2)) is honor to join our Democratic Leader and 933. amended by striking ‘‘this chapter’’ and in- and so many of our colleagues in intro- ‘‘(C) INFLATION ADJUSTMENT.—In the case serting ‘‘this subtitle’’. ducing the Affordable Health Care Act. of any taxable year beginning after 2005, the (4) Subparagraph (B) of section 72(t)(7) of This legislation states our strong $50,000 and $100,000 amounts referred to in such Code is amended by striking ‘‘section commitment as Democrats to end the subparagraph (A) shall be increased by an 25A(g)(2)’’ and inserting ‘‘section 36(g)(2)’’. amount equal to— (5) Subparagraph (A) of section 135(d)(2) of crisis in health care that affects every ‘‘(i) such dollar amount, multiplied by such Code is amended by striking ‘‘section family. It’s a down payment on our ‘‘(ii) the cost-of-living adjustment deter- 25A’’ and inserting ‘‘section 36’’. commitment to quality, affordable mined under section 1(f)(3) for the calendar (6) Section 221(d) of such Code is amended— health care for every American, and we

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00077 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S184 CONGRESSIONAL RECORD — SENATE January 24, 2005 will not rest until that goal is million Americans—one out of every Reports suggest in fact that the Ad- achieved. three non-elderly Americans—will be ministration’s new budget will propose The worsening crisis in health care is uninsured for a significant period of to cut Medicaid, which provides health caused by skyrocketing costs, declin- time. care for more than 50 million of the ing insurance coverage, and less secu- Tragically, eight and a half million poorest of the poor. The deficit must be rity for every family. Businesses—espe- children are uninsured and may well be addressed—but it was created by the cially small businesses—find it increas- denied the opportunity for a healthy Administration’s tax breaks for the ingly difficult to provide decent cov- start in life that should be the birth- wealthy, and the poor and the sick erage for their employees. Companies right of every child. Even people who should not have to bear the burden of struggling with foreign competition have health insurance today cannot reducing it. That’s the wrong priority are at an every-larger competitive dis- count on it being there for them to- and the wrong values. advantage because of their constantly morrow. No American family is more The legislation we are offering today rising costs. than one pink slip or one employer de- will not solve all these problems, but it Last year, the percentage of the Na- cision away from being uninsured. is a good start, and we are committed tion’s gross domestic product devoted The uninsured are vulnerable not to finishing the job. to health was 15.5%, the highest in our only to unaffordable costs, but to sub- The Affordable Health Care Act guar- history. Since 2000, annual spending on standard or health care or no care at antees that every child in America will health care has risen from $1.3 trillion all. In any given year, one-third of the have quality health care coverage. to $1.7 trillion, an increase of almost uninsured go without needed medical It reduces health costs substantially, half a trillion dollars in just four years. care. Two hundred seventy thousand by making FDA-approved drugs avail- Even worse, insurance premiums children suffering from asthma never able at the same fair prices available have soared by 59 percent during those see a doctor. Three hundred fifty thou- to Canadians and Europeans, rather four years. The cost of insurance for a sand children with recurrent earaches than the inflated prices charged to U.S. family has risen by almost $3,000. Last never see a doctor. Three hundred fifty patients. year, the cost of the premiums for fam- thousand children with severe sore It takes a giant step toward adoption ily coverage averaged $10,000, and was throats never see a doctor. of modern information technology in much higher for many families. Twenty-seven thousand uninsured health care, which has the potential to Drug costs are also out of control. women are diagnosed with breast can- dramatically improve the quality of According to current data, they rose 47 cer each year. They are twice as likely care and dramatically reduce its cost— percent in the first three years of the as insured women not to receive med- by as much as $140 billion a year. It Bush Administration. Too many pa- ical treatment until their cancer has also improves quality by giving the tients are cutting the pills their doc- spread too far, and they are 50 percent FDA additional authority to monitor tors prescribe in half or going without more likely to die of the disease. the safety of approved drugs. them altogether, because they can’t af- Thirty-two thousand Americans with It addresses the special burden faced ford the drugs they need to treat or heart disease go without life-saving by small businesses by offering tax prevent disease. and life-enhancing bypass surgery or credits to reduce the premiums they Even Medicare premiums are out of angioplasty—because they are unin- pay to cover their employees. It also control. The largest premium increase sured. establishes a demonstration program in Medicare’s history went into effect The bottom line is that whether the in 25 cities to see if a successful pro- just three weeks ago. Since President disease is AIDS or mental illness or Bush took office, Medicare premiums cancer or heart disease or diabetes, the gram in Michigan to expand insurance have climbed by 72 percent. Senior citi- uninsured are left out and left behind. coverage for small businesses can be zens, with an average income of $15,000, In hospital and out, young or old, black replicated elsewhere. Finally, our bill now have to pay almost $1,000 a year or brown or white, they receive less includes a sense of the Senate resolu- for their Part B premiums under Medi- care, suffer more, and are 25 percent tion to put Congress firmly on record care. The recent report of the Medicare more likely to die prematurely than against destructive cuts in Medicaid. trustees included the stunning revela- those who have insurance. Affordable health care is a high pri- tion that Medicare cost sharing and Even for those with insurance, the ority for every family, and it should be premiums will soon eat up more than quality of health care is often need- an equally high priority for this Con- 40 percent of the total Social Security lessly compromised. Recent events cast gress. We face a crisis, and it is time to benefit of the typical 85 year old. serious doubt on the FDA’s ability to act. Senate Democrats are committed As a proportion of Gross Domestic respond promptly when drugs it has ap- to guaranteeing the basic right to Product spent on health care, America proved turn out to have dangerous side health care for all Americans, and is first in the world by a large margin. effects. By some estimates, tens of when we say ‘‘all’’, we mean ‘‘all’’. We spend 30 percent more than the thousands of unnecessary deaths have I ask unanimous consent that the Swiss who are number two, a third resulted. text of the bill be printed in the more than the Germans, fifty percent The lack of coordination in our sys- RECORD. more than the French and the Cana- tem results in duplicative, costly, and There being no objection, the bill was dians, and seventy-eight percent more often counterproductive tests and pro- ordered to be printed in the RECORD, as than the Japanese. cedures. The Midwest Business Group follows: These extraordinarily high levels of on Health estimates that the cost of S. 16 health spending might be justified if poor quality care to employers pro- Be it enacted by the Senate and House of Rep- they produced dramatically better viding health insurance coverage is resentatives of the United States of America in health care for the American people. $2,000 per worker, and it’s paid in the Congress assembled, But they don’t. Among the world’s form of higher insurance premiums. A SECTION 1. SHORT TITLE; TABLE OF CONTENTS. leading industrialized countries, the recent study found that for many seri- (a) SHORT TITLE.—This Act may be cited as United States ranks 22nd in average ous illnesses, patients are as likely to the ‘‘Affordable Health Care Act’’. life expectancy and 25th in infant mor- receive substandard care as they are to (b) TABLE OF CONTENTS.—The table of con- tents of this Act is as follows: tality. receive care meeting accepted profes- We also face a worsening crisis of the sional standards. Sec. 1. Short title; table of contents. uninsured. Since President Bush took In the face of this massive crisis in TITLE I—MAKING PRESCRIPTION DRUGS office, the number of uninsured Ameri- health care, the Administration and MORE SAFE AND AFFORDABLE cans has increased by a shameful mil- Congress have been missing in action Subtitle A—Access to Prescription Drugs lion a year. Today, 45 million Ameri- for too long. The Bush Administration Sec. 101. Findings. and the Republican leadership in Con- Sec. 102. Repeal of certain section regarding cans have no coverage. Between 2001 importation of prescription and 2004, five million jobs offering gress defend the special interests that drugs. health insurance were lost. profit from the status quo and ignore Sec. 103. Importation of prescription drugs; Even these figures understate the the suffering of the millions of families waiver of certain import re- problem. Over a two-year period, 82 victimized by their neglect. strictions.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00078 Fmt 0637 Sfmt 0655 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S185 Sec. 104. Additional waivers regarding per- Sec. 357. State option to provide wrap- is imported or offered for import into the sonal importation; enforcement around SCHIP coverage to chil- United States— policies of Secretary. dren who have other health cov- ‘‘(A) by a registered importer; or Sec. 105. Disposition of certain drugs denied erage. ‘‘(B) from a registered exporter to an indi- admission into United States. Sec. 358. Innovative outreach programs. vidual. Sec. 106. Civil actions regarding property. Subtitle C—Affirming the Importance of ‘‘(4) DEFINITIONS.— Sec. 107. Wholesale distribution of drugs; Medicaid ‘‘(A) REGISTERED EXPORTER; REGISTERED IM- Statements regarding prior Sec. 361. Sense of the Senate. PORTER.—For purposes of this section: sale, purchase, or trade. ‘‘(i) The term ‘registered exporter’ means Sec. 108. Repeal of importation exemption TITLE IV—REDUCING HEALTH CARE an exporter for which a registration under under Controlled Substances COSTS FOR SMALL EMPLOYERS subsection (b) has been approved and is in ef- Import and Export Act. Subtitle A—Tax Relief fect. Sec. 109. Effect on administration practices. Sec. 401. Refundable credit for small busi- ‘‘(ii) The term ‘registered importer’ means Subtitle B—Ensuring Drug Safety ness employee health insurance a pharmacy, group of pharmacies, or a Sec. 121. Drug safety. expenses. wholesaler for which a registration under Sec. 122. Report by GAO on drug safety. Subtitle B—Three-Share Program subsection (b) has been approved and is in ef- fect. TITLE II—MODERNIZING THE HEALTH Sec. 421. Three-share programs. CARE SYSTEM ‘‘(iii) The term ‘registration condition’ TITLE I—MAKING PRESCRIPTION DRUGS means a condition that must exist for a reg- Sec. 201. Amendment to the Public Health MORE SAFE AND AFFORDABLE istration under subsection (b) to be ap- Service Act. Subtitle A—Access to Prescription Drugs proved. Sec. 202. Standardized measures of quality ‘‘(B) QUALIFYING DRUG.—For purposes of health care and data collection. SEC. 101. FINDINGS. Congress finds that— this section, the term ‘qualifying drug’ TITLE III—MAKING HEALTH CARE MORE (1) Americans unjustly pay up to 5 times means a prescription drug, other than any of AFFORDABLE FOR CHILDREN AND more to fill their prescriptions than con- the following: PREGNANT WOMEN sumers in other countries; ‘‘(i) A controlled substance, as defined in Subtitle A—Covering all Children (2) the United States is the largest market section 102 of the Controlled Substances Act Sec. 300. Findings. for pharmaceuticals in the world, yet Amer- (21 U.S.C. 802). ‘‘(ii) A biological product, as defined in CHAPTER 1—EXPANDED COVERAGE OF ican consumers pay the highest prices for section 351 of the Public Health Service Act CHILDREN UNDER MEDICAID AND SCHIP brand pharmaceuticals in the world; (42 U.S.C. 262). Sec. 301. State option to receive 100 percent (3) a prescription drug is neither safe nor effective to an individual who cannot afford ‘‘(iii) An infused drug, including a peri- fmap for medical assistance for toneal dialysis solution. children in poverty in exchange it; (4) allowing and structuring the importa- ‘‘(iv) An intravenously injected drug. for expanded coverage of chil- ‘‘(v) A drug that is inhaled during surgery. dren in working poor families tion of prescription drugs to ensure access to safe and affordable drugs approved by the ‘‘(C) OTHER DEFINITIONS.—For purposes of under title XXI. this section: Sec. 302. Elimination of cap on SCHIP fund- Food and Drug Administration will provide a level of safety to American consumers that ‘‘(i) The term ‘exporter’ means a person ing for States that expand eligi- that is in the business of exporting a drug bility for children. they do not currently enjoy; (5) American seniors alone will spend from Canada to individuals in the United CHAPTER 2—STATE OPTIONS FOR INCREMENTAL $1,800,000,000,000 on pharmaceuticals over the States or that, pursuant to submitting a reg- CHILD COVERAGE EXPANSIONS next 10 years; and istration under subsection (b), seeks to be in Sec. 311. State option to enroll low-income (6) allowing open pharmaceutical markets such business. children of State employees in could save American consumers at least ‘‘(ii) The term ‘importer’ means a phar- SCHIP. $38,000,000,000 each year. macy, a group of pharmacies, or a wholesaler that is in the business of importing a drug Sec. 312. State option for passive renewal of SEC. 102. REPEAL OF CERTAIN SECTION REGARD- eligibility for children under ING IMPORTATION OF PRESCRIP- into the United States or that, pursuant to medicaid and SCHIP. TION DRUGS. submitting a registration under subsection CHAPTER 3—TAX INCENTIVES FOR HEALTH Chapter VIII of the Federal Food, Drug, (b), seeks to be in such business. INSURANCE COVERAGE OF CHILDREN and Cosmetic Act (21 U.S.C. 381 et seq.) is ‘‘(iii) The term ‘pharmacist’ means a per- son licensed by a State to practice phar- Sec. 321. Refundable credit for health insur- amended by striking section 804. macy, including the dispensing and selling of ance coverage of children. SEC. 103. IMPORTATION OF PRESCRIPTION prescription drugs. Sec. 322. Forfeiture of personal exemption DRUGS; WAIVER OF CERTAIN IM- ‘‘(iv) The term ‘pharmacy’ means a person for any child not covered by PORT RESTRICTIONS. that— health insurance. (a) IN GENERAL.—Chapter VIII of the Fed- eral Food, Drug, and Cosmetic Act (21 U.S.C. ‘‘(I) is licensed by a State to engage in the CHAPTER 4—MISCELLANEOUS 381 et seq.), as amended by section 102, is fur- business of selling prescription drugs at re- Sec. 331. Requirement for group market ther amended by inserting after section 803 tail; and health insurers to offer depend- the following: ‘‘(II) employs 1 or more pharmacists. ent coverage option for workers ‘‘SEC. 804. COMMERCIAL AND PERSONAL IMPOR- ‘‘(v) The term ‘prescription drug’ means a with children. TATION OF PRESCRIPTION DRUGS. drug that is described in section 503(b)(1). Sec. 332. Effective date. ‘‘(a) IMPORTATION OF PRESCRIPTION ‘‘(vi) The term ‘wholesaler’— Subtitle B—Covering Pregnant Women DRUGS.— ‘‘(I) means a person licensed as a whole- Sec. 351. State option to expand or add cov- ‘‘(1) IN GENERAL.—The Secretary shall in saler or distributor of prescription drugs in erage of pregnant women under accordance with this section provide by reg- the United States under section 503(e)(2)(A); the medicaid program and ulation that, in the case of qualifying drugs and State Children’s Health Insur- imported or offered for import into the ‘‘(II) does not include a person authorized ance Program. United States from registered exporters or to import drugs under section 801(d)(1). Sec. 352. Optional coverage of legal immi- by registered importers— ‘‘(D) PERMITTED COUNTRY.—The term ‘per- grants under the medicaid pro- ‘‘(A) the limitation on importation that is mitted country’ means— gram and SCHIP. established in section 801(d)(1) is waived; and ‘‘(i) Australia; Sec. 353. Promoting cessation of tobacco use ‘‘(B) the standards referred to in section ‘‘(ii) Canada; under the medicaid program. 801(a) regarding admission of the drugs are ‘‘(iii) a member country of the European Sec. 354. Promoting cessation of tobacco use subject to subsection (g) of this section (in- Union as of January 1, 2003; under the maternal and child cluding with respect to qualifying drugs to ‘‘(iv) Japan; health services block grant pro- which section 801(d)(1) does not apply). ‘‘(v) New Zealand; and gram. ‘‘(2) IMPORTERS.—A qualifying drug may ‘‘(vi) Switzerland. Sec. 355. State option to provide family not be imported under paragraph (1) unless— ‘‘(b) REGISTRATION OF IMPORTERS AND EX- planning services and supplies ‘‘(A) the drug is imported by a pharmacy PORTERS.— to individuals with incomes or a wholesaler that is a registered importer; ‘‘(1) REGISTRATION OF IMPORTERS AND EX- that do not exceed a State’s in- or PORTERS.—A registration condition is that come eligibility level for med- ‘‘(B) the drug is imported by an individual the importer or exporter involved (referred ical assistance. for personal use or for the use of a family to in this subsection as a ‘registrant’) sub- Sec. 356. State option to extend the member of the individual (not for resale) mits to the Secretary a registration con- postpartum period for provision from a registered exporter. taining the following: of family planning services and ‘‘(3) RULE OF CONSTRUCTION.—This section ‘‘(A) The name of the registrant and an supplies. shall apply only with respect to a drug that identification of all places of business of the

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00079 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S186 CONGRESSIONAL RECORD — SENATE January 24, 2005 registrant that relate to qualifying drugs, in- ‘‘(i) the importation by pharmacies, groups ner in the export or import enterprise, or a cluding each warehouse or other facility of pharmacies, wholesalers as registered im- principal officer in such enterprise, and any owned or controlled by, or operated for, the porters of qualifying drugs under subsection registration prepared with the assistance of registrant. (a); and the registrant or such a person, has no legal ‘‘(B) Such information as the Secretary de- ‘‘(ii) importation by individuals of quali- effect under this section. termines to be necessary to demonstrate fying drugs under subsection (a). ‘‘(c) SOURCES OF QUALIFYING DRUGS.—A that the registrant is in compliance with ‘‘(2) APPROVAL OR DISAPPROVAL OF REG- registration condition is that the exporter or registration conditions under— ISTRATION.— ‘‘(i) in the case of an importer, subsections ‘‘(A) IN GENERAL.—Not later than 90 days importer involved agrees that a qualifying (c), (d), (e), (g), and (j) (relating to the after the date on which a registrant submits drug will under subsection (a) be exported or sources of exported drugs; the inspection of to the Secretary a registration under para- imported to the United States only if there facilities of the importer; the payment of graph (1), the Secretary shall notify the reg- is compliance with the following: fees; compliance with the standards referred istrant whether the registration is approved ‘‘(1) The drug was manufactured in an es- to in section 801(a); and maintenance of or is disapproved. The Secretary shall dis- tablishment— records and samples); or approve a registration if there is reason to ‘‘(A) required to register under subsection ‘‘(ii) in the case of an exporter, subsections believe that the registrant is not in compli- (h) or (i) of section 510; or (c), (d), (f), (g), (h), (i), and (j) (relating to the ance with one or more registration condi- ‘‘(B) inspected by the Secretary as pro- sources of exported drugs; the inspection of tions, and shall notify the registrant of such vided by this section. facilities of the exporter and the marking of reason. In the case of a disapproved registra- ‘‘(2) The establishment is located in the compliant shipments; the payment of fees; tion, the Secretary shall subsequently notify United States or in any foreign country, and and compliance with the standards referred the registrant that the registration is ap- the establishment manufactured the drug for to in section 801(a); being licensed as a phar- proved if the Secretary determines that the distribution in the United States or for dis- macist; conditions for individual importa- registrant is in compliance with such condi- tribution in 1 or more of the permitted coun- tion from Canada; and maintenance of tions. tries (without regard to whether in addition records and samples). ‘‘(B) CHANGES IN REGISTRATION INFORMA- the drug was manufactured for distribution ‘‘(C) An agreement by the registrant that TION.—Not later than 30 days after receiving in a foreign country that is not a permitted the registrant will not under subsection (a) a notice under paragraph (1)(G) from a reg- country). import or export any drug that is not a istrant, the Secretary shall determine ‘‘(3) The exporter or importer obtained the qualifying drug. whether the change involved affects the ap- drug— ‘‘(D) An agreement by the registrant to— proval of the registration of the registrant ‘‘(A) directly from the establishment; or ‘‘(i) notify the Secretary of a recall or under paragraph (1), and shall inform the ‘‘(B) directly from an entity that, by con- withdrawal of a drug distributed in a per- registrant of the determination. tract with the exporter or importer— mitted country that the registrant has ex- ‘‘(3) PUBLICATION OF CONTACT INFORMATION ‘‘(i) provides to the exporter or importer a ported or imported, or intends to export or FOR REGISTERED EXPORTERS.—Through the statement (in such form and containing such import, to the United States under sub- Internet website of the Food and Drug Ad- information as the Secretary may require) section (a); ministration, the Secretary shall make read- that, for the chain of custody from the estab- ‘‘(ii) provide for the return to the reg- ily available to the public a list of registered lishment, identifies each prior sale, pur- istrant of such drug; and exporters, including contact information for chase, or trade of the drug (including the ‘‘(iii) cease, or not begin, the exportation the exporters. Promptly after the approval of date of the transaction and the names and or importation of such drug unless the Sec- a registration submitted under paragraph (1), addresses of all parties to the transaction); retary has notified the registrant that expor- the Secretary shall update the Internet ‘‘(ii) agrees to permit the Secretary to in- tation or importation of such drug may pro- website accordingly. spect such statements and related records to ceed. ‘‘(4) SUSPENSION AND TERMINATION.— determine their accuracy; ‘‘(E) An agreement by the registrant to en- ‘‘(A) SUSPENSION.—With respect to the ef- ‘‘(iii) agrees, with respect to the qualifying sure and monitor compliance with each reg- fectiveness of a registration submitted under drugs involved, to permit the Secretary to istration condition, to promptly correct any paragraph (1): inspect warehouses and other facilities of the noncompliance with such a condition, and to ‘‘(i) Subject to clause (ii), if the Secretary entity for purposes of determining whether promptly report to the Secretary any such determines, after notice and opportunity for the facilities are in compliance with any noncompliance. a hearing, that the registrant has failed to standards under this Act that are applicable ‘‘(F) A plan describing the manner in maintain substantial compliance with all to facilities of that type in the United which the registrant will comply with the registration conditions, the Secretary may States; and agreement under subparagraph (E). suspend the registration. ‘‘(iv) has ensured, through such contrac- ‘‘(G) An agreement by the registrant to en- ‘‘(ii) If the Secretary determines that, tual relationships as may be necessary, that force a contract under subsection (c)(3)(B) under color of the registration, the exporter the Secretary has the same authority re- against a party in the chain of custody of a has exported a drug or the importer has im- garding other parties in the chain of custody qualifying drug with respect to the authority ported a drug that is not a qualifying drug, from the establishment that the Secretary of the Secretary under clauses (ii) and (iii) of or a drug that does not meet the criteria has under clauses (ii) and (iii) regarding such that subsection. under subsection (g)(2)(A), or has exported a entity. ‘‘(H) An agreement by the registrant to no- qualifying drug to an individual in violation ‘‘(4) The foreign country from which the tify the Secretary of— of subsection (i)(1)(F), the Secretary shall importer will import the drug is a permitted ‘‘(i) any change that the registrant intends immediately suspend the registration. A sus- country. to make regarding information provided pension under the preceding sentence is not ‘‘(5) The foreign country from which the under subparagraph (A) or (B); and subject to the provision by the Secretary of exporter will export the drug is Canada. ‘‘(ii) any change that the registrant in- prior notice, and the Secretary shall provide ‘‘(6) During any period in which the drug tends to make in the compliance plan under to the registrant an opportunity for a hear- was not in the control of the manufacturer subparagraph (F). ing not later than 10 days after the date on of the drug, the drug did not enter any coun- ‘‘(I) In the case of an exporter— which the registration is suspended. try that is not a permitted country. ‘‘(i) An agreement by the exporter that a ‘‘(iii) The Secretary may reinstate the reg- ‘‘(7) The exporter or importer retains a qualifying drug will not under subsection (a) istration, whether suspended under clause (i) sample of each lot of the drug sufficient for be exported to any individual not authorized or (ii), if the Secretary determines that the testing by the Secretary. pursuant to subsection (a)(2)(B) to be an im- registrant has demonstrated that further porter of such drug. violations of registration conditions will not ‘‘(d) INSPECTION OF FACILITIES; MARKING OF ‘‘(ii) An agreement to post a bond, payable occur. SHIPMENTS.— to the Treasury of the United States if, after ‘‘(B) TERMINATION.—The Secretary, after ‘‘(1) INSPECTION OF FACILITIES.—A registra- opportunity for an informal hearing, the notice and opportunity for a hearing, may tion condition is that, for the purpose of as- Secretary determines that the exporter has terminate the registration under paragraph sisting the Secretary in determining whether exported a drug to the United States that is (1) of a registrant if the Secretary deter- the exporter involved is in compliance with not a qualifying drug or that is not in com- mines that the registrant has engaged in a all other registration conditions— pliance with subsections (g) or (i), that is pattern or practice of violating 1 or more ‘‘(A) the exporter agrees to permit the Sec- equal in value to the lesser of— registration conditions, or if on 1 or more oc- retary— ‘‘(I) the value of drugs exported by the ex- casions the Secretary has under subpara- ‘‘(i) to conduct onsite inspections, includ- porter to the United States in a typical 4- graph (A)(ii) suspended the registration of ing monitoring on a day-to-day basis, of week period over the course of a year under the registrant. The Secretary may make the places of business of the exporter that relate this section; or termination permanent, or for a fixed period to qualifying drugs, including each ware- ‘‘(II) $1,000,000. of not less than 1 year. During the period in house or other facility owned or controlled ‘‘(J) Such other provisions as the Sec- which the registration is terminated, any by, or operated for, the exporter; retary may require to protect the public registration submitted under paragraph (1) ‘‘(ii) to have access, including on a day-to- health while permitting— by the registrant, or a person that is a part- day basis, to—

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‘‘(I) records of the exporter that relate to ‘‘(1) REGISTRATION FEE.—A registration mine compliance with conditions under sub- the export of such drugs, including financial condition is that the importer involved pays sections (h) and (i). records; and to the Secretary a fee of $10,000 due on the ‘‘(B) LIMITATION.—The aggregate total of ‘‘(II) samples of such drugs; date on which the importer first submits the fees collected under paragraph (2) shall not ‘‘(iii) to carry out the duties described in registration to the Secretary under sub- exceed 1 percent of the total price of drugs paragraph (3); and section (b). imported annually to the United States by ‘‘(iv) to carry out any other functions de- ‘‘(2) INSPECTION FEE.—A registration condi- registered exporters under this section. termined by the Secretary to be necessary tion is that the importer involved pays to ‘‘(C) INDIVIDUAL EXPORTER FEE.—Subject to regarding the compliance of the exporter; the Secretary in accordance with this sub- the limitation described in subparagraph (B), and section a fee on a semiannual basis, with the a fee under paragraph (2) for an exporter ‘‘(B) the Secretary has assigned 1 or more first fee due on the date that is 6 months shall be an amount that is a reasonable esti- employees of the Secretary to carry out the after the date on which the registration of mate by the Secretary of the semiannual functions described in this subsection for the the importer under subsection (b) is first ap- share of the exporter of the volume of drugs Secretary not less than every 3 weeks on the proved by the Secretary. exported by exporters under this section. premises of places of businesses referred to ‘‘(3) AMOUNT OF INSPECTION FEE.— ‘‘(D) ADJUSTMENT OF FEE.—The Secretary in subparagraph (A)(i), and such an assign- ‘‘(A) AGGREGATE TOTAL OF FEES.—The Sec- shall annually adjust the fees under para- ment remains in effect on a continuous retary shall ensure that the aggregate total graph (2) to ensure that the fees accurately basis. of fees collected under paragraph (2) for a fis- reflect the actual costs referred to in sub- ‘‘(2) MARKING OF COMPLIANT SHIPMENTS.—A cal year from all importers is sufficient, and paragraph (A) and do not exceed, in the ag- registration condition is that the exporter no more than necessary, to pay the costs of gregate, 1 percent of the total price of drugs involved agrees to affix to each shipping con- administering this section with respect to imported annually to the United States tainer of qualifying drugs exported under registered importers for a fiscal year, includ- under this section. subsection (a) such markings as the Sec- ing— ‘‘(4) USE OF FEES.—Subject to appropria- retary determines to be necessary to identify ‘‘(i) inspection of the facilities of importers tions Acts, fees collected by the Secretary the shipment as being in compliance with all under subsection (d)(4); under paragraphs (1) and (2) are only avail- registration conditions. Markings under the ‘‘(ii) reviewing qualifying drugs offered for able to the Secretary and are for the sole preceding sentence— import to importers; and purpose of paying the costs referred to in ‘‘(A) shall be designed to prevent affixation ‘‘(iii) determining the compliance of im- paragraph (3)(A). ‘‘(g) COMPLIANCE WITH SECTION 801(a).— of the markings to any shipping container porters with registration conditions. ‘‘(1) IN GENERAL.—A registration condition that is not authorized to bear the markings; ‘‘(B) LIMITATION.—The aggregate total of is that each qualifying drug exported under and fees collected under paragraph (2) shall not subsection (a) by the registered exporter in- ‘‘(B) may include anti-counterfeiting or exceed 1 percent of the total price of drugs volved or imported under subsection (a) by track-and-trace technologies. imported annually to the United States by the registered importer involved is in com- ‘‘(3) CERTAIN DUTIES RELATING TO EXPORT- registered importers under this section. ERS.—Duties of the Secretary with respect to pliance with the standards referred to in sec- ‘‘(C) INDIVIDUAL IMPORTER FEE.—Subject to an exporter include the following: tion 801(a) regarding admission of the drug the limitation described in subparagraph (B), ‘‘(A) Verifying the chain of custody of a into the United States, subject to paragraphs a fee under paragraph (2) for an importer statistically significant sample of qualifying (2), (3), and (4). shall be an amount that is a reasonable esti- drugs from the establishment in which the ‘‘(2) SECTION 505; APPROVAL STATUS.— mate by the Secretary of the semiannual drug was manufactured to the exporter, ‘‘(A) IN GENERAL.—For purposes of adminis- share of the importer of the volume of drugs which may be accomplished by the use of trative and judicial procedure, there is a pre- imported by importers under this section. anticounterfeiting or track-and-trace tech- sumption that a drug proposed for export or ‘‘(D) ADJUSTMENT OF FEE.—The Secretary nologies, if available. import under subsection (a) is an approved shall annually adjust the fees under para- ‘‘(B) Randomly reviewing records of ex- drug under section 505(b) if the following cri- graph (2) to ensure that the fees accurately ports to individuals for the purpose of deter- teria are met: reflect the actual costs referred to in sub- mining whether the drugs are being imported ‘‘(i) The drug proposed for export or import by the individuals in accordance with the paragraph (A) and do not exceed, in the ag- is in compliance with subsection (c). conditions under subsection (i). Such reviews gregate, 1 percent of the total price of drugs ‘‘(ii) The drug proposed for export or im- shall be conducted in a manner that will re- imported annually to the United States port has the same active ingredient or ingre- sult in a statistically significant determina- under this section. dients, route of administration, dosage form, tion of compliance with all such conditions. ‘‘(4) USE OF FEES.—Subject to appropria- and strength, according to information pro- ‘‘(C) Monitoring the affixing of markings tions Acts, fees collected by the Secretary vided by the labeling of the drug proposed for under paragraph (2). under paragraphs (1) and (2) are available export or import, as a drug (referred to in ‘‘(D) Inspect as the Secretary determines is only to the Secretary and are for the sole this subsection as a ‘U.S. label drug’) that— necessary the warehouses and other facilities purpose of paying the costs referred to in ‘‘(I) is manufactured by or for the person of other parties in the chain of custody of paragraph (3)(A). that manufactures the drug proposed for ex- qualifying drugs. ‘‘(f) EXPORTER FEES.— port or import; and ‘‘(E) Determine whether the exporter is in ‘‘(1) REGISTRATION FEE.—A registration ‘‘(II) is approved under section 505(b). compliance with all other registration condi- condition is that the exporter involved pays ‘‘(B) IMPORTATION.—Subject to subpara- tions. to the Secretary a fee of $10,000 due on the graphs (D) and (E), a drug meeting the cri- ‘‘(4) CERTAIN DUTIES RELATING TO IMPORT- date on which the exporter first submits that teria described in subparagraph (A) may, in ERS.—Duties of the Secretary with respect to registration to the Secretary under sub- accordance with the other subsections of this an importer include the following: section (b). section, be imported into the United States. ‘‘(A) As authorized under section 704, in- ‘‘(2) INSPECTION FEE.—A registration condi- ‘‘(C) NOTICE BY MANUFACTURER; GENERAL spect not less than every 3 weeks, the places tion is that the exporter involved pays to the PROVISIONS.— of business of the importer that relate to the Secretary in accordance with this subsection ‘‘(i) IN GENERAL.—The person that manu- receipt and distribution of a qualifying drug, a fee on a semiannual basis, with the first fee factures a drug that may be imported under including each warehouse or other facility due on the date that is 6 months after the subsection (a) shall in accordance with this owned or controlled by, or operated for, the date on which the registration of the ex- paragraph submit to the Secretary a notice importer at which qualifying drugs are re- porter under subsection (b) is first approved that— ceived or from which they are distributed to by the Secretary. ‘‘(I) includes each difference in the drug pharmacies. ‘‘(3) AMOUNT OF INSPECTION FEE.— from a condition established in the approved ‘‘(B) During the inspections under subpara- ‘‘(A) AGGREGATE TOTAL OF FEES.—The Sec- application for the U.S. label drug beyond graph (A), verify the chain of custody of a retary shall ensure that the aggregate total the variations provided for in the applica- statistically significant sample of qualifying of fees collected under paragraph (2) for a fis- tion, any difference in labeling, the date on drugs from the establishment in which the cal year from all exporters is sufficient, and which the drug with such difference was, or drug was manufactured to the importer, not more than necessary, to pay the costs of will be, introduced for commercial distribu- which may be accomplished by the use of administering this section with respect to tion in a permitted country, and such addi- anticounterfeiting or track-and-trace tech- registered exporters for a fiscal year, includ- tional information as the Secretary may re- nologies, if available. ing— quire; or ‘‘(C) Inspect as the Secretary determines is ‘‘(i) monitoring foreign facilities under ‘‘(II) states that there is no difference in necessary the warehouses and other facilities subsection (d); the drug from a condition established in the of other parties in the chain of custody of ‘‘(ii) developing, implementing, and main- approved application for the U.S. label drug qualifying drugs. taining under such subsection a system to beyond the variations provided for in the ap- ‘‘(D) Determine whether the importer is in mark shipments to indicate compliance with plication and differences in labeling. compliance with all other registration condi- all registration conditions; and ‘‘(ii) INFORMATION REGARDING FOREIGN GOV- tions. ‘‘(iii) conducting under such subsection in- ERNMENT.—A notice under clause (i)(I) shall ‘‘(e) IMPORTER FEES.— spections within the United States to deter- with respect to the permitted country that

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00081 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S188 CONGRESSIONAL RECORD — SENATE January 24, 2005 approved the drug for commercial distribu- such inspection shall be authorized by sec- ‘‘(ii) If the Secretary determines that such tion, or with respect to which such approval tion 704. a supplemental application regarding the is sought, include the following: ‘‘(vii) PUBLICATION OF INFORMATION ON NO- U.S. label drug would not be approved, the ‘‘(I) Information demonstrating that the TICES.— Secretary shall order that the importation of person submitting the notice has also noti- ‘‘(I) IN GENERAL.—Through the Internet the drug involved from the permitted coun- fied the government of the permitted coun- website of the Food and Drug Administra- try cease, shall notify the permitted country try in writing that the person is submitting tion, the Secretary shall readily make avail- that approved the drug for commercial dis- to the Secretary a notice under clause (i)(I), able to the public a list of notices submitted tribution of the determination, and shall which notice describes the difference in the under clause (i). promptly notify registered exporters, reg- drug from a condition established in the ap- ‘‘(II) CONTENTS.—The list under subclause istered importers, the Federal Trade Com- proved application for the U.S. label drug. (I) shall include the date on which a notice is mission, and the Assistant Attorney General ‘‘(II) The information that the person sub- submitted and whether— of the determination. mitted or will submit to the government of ‘‘(aa) a notice is under review; ‘‘(F) NOTICE; DRUG DIFFERENCE NOT REQUIR- the permitted country for purposes of ob- ‘‘(bb) the Secretary has ordered that im- ING APPROVAL; NO DIFFERENCE.—In the case of taining approval for commercial distribution portation of the drug from a permitted coun- a notice under subparagraph (C)(i) that in- of the drug in the country which, if in a lan- try cease; or cludes a difference for which, under section guage other than English, shall be accom- ‘‘(cc) the importation of the drug is per- 506A(d)(1)(A), a supplemental application panied by an English translation verified to mitted under subsection (a). would not be required for the difference to be be complete and accurate, with the name, made to the U.S. label drug, or that states ‘‘(III) UPDATE.—The Secretary shall address, and a brief statement of the quali- that there is no difference, the Secretary— promptly update the Internet website with fications of the person that made the trans- ‘‘(i) may not order that the importation of any changes to the list. lation. the drug involved cease; and ‘‘(D) NOTICE; DRUG DIFFERENCE REQUIRING ‘‘(iii) CERTIFICATIONS.—The chief executive ‘‘(ii) shall promptly notify registered ex- PRIOR APPROVAL.—In the case of a notice officer and the chief medical officer of the porters and registered importers. under subparagraph (C)(i) that includes a dif- manufacturer involved shall each certify in ‘‘(G) DIFFERENCES IN ACTIVE INGREDIENT, ference that would, under section 506A(c) or the notice under clause (i) that— ROUTE OF ADMINISTRATION, DOSAGE FORM, OR (d)(3)(B)(i), require the approval of a supple- ‘‘(I) the information provided in the notice STRENGTH.— mental application before the difference is complete and true; and ‘‘(i) IN GENERAL.—A person who manufac- ‘‘(II) a copy of the notice has been provided could be made to the U.S. label drug the fol- tures a U.S. label drug shall submit an appli- to the Federal Trade Commission and to the lowing shall occur: cation under section 505(b) for a drug that is Assistant Attorney General in charge of the ‘‘(i) Promptly after the notice is sub- manufactured for distribution in a permitted Antitrust Division of the Department of Jus- mitted, the Secretary shall notify registered country by or for the person that manufac- tice (referred to in this subsection as the ‘As- exporters, registered importers, the Federal tures the U.S. label drug if— sistant Attorney General’). Trade Commission, and the Assistant Attor- ‘‘(I) there is no drug for export from at ‘‘(iv) FEE.—If a notice submitted under ney General that the notice has been sub- least half of the permitted countries with clause (i) includes a difference that would, mitted with respect to the drug involved. the same active ingredient or ingredients, under section 506A, require the submission of ‘‘(ii) If the Secretary has not made a deter- route of administration, dosage form, and a supplemental application if made as a mination whether a supplemental applica- strength as the U.S. label drug; and change to the U.S. label drug, the person tion regarding the U.S. label drug would be ‘‘(II) each active ingredient of the drug is that submits the notice shall pay to the Sec- approved or disapproved by the date on related to an active ingredient of the U.S. retary a fee in the same amount as would which the drug involved is to be introduced label drug, as defined in clause (v). apply if the person were paying a fee pursu- for commercial distribution in a permitted ‘‘(ii) APPLICATION UNDER SECTION 505(b).— ant to section 736(a)(1)(A)(ii). Subject to ap- country, the Secretary shall— The application under section 505(b) required propriations Acts, fees collected by the Sec- ‘‘(I) order that the importation of the drug under clause (i) shall— retary under the preceding sentence are involved from the permitted country cease ‘‘(I) request approval of the drug for the in- available only to the Secretary and are for for the period in which the Secretary com- dication or indications for which the U.S. the sole purpose of paying the costs of re- pletes review of the notice; and label drug is approved under section 505; viewing notices submitted under clause (i). ‘‘(II) promptly notify registered exporters, ‘‘(II) include the information that the per- ‘‘(v) TIMING OF SUBMISSION OF NOTICES.— registered importers, the Federal Trade son submitted to the government of the per- ‘‘(I) PRIOR APPROVAL NOTICES.—A notice Commission, and the Attorney General of mitted country for purposes of obtaining ap- under clause (i) to which subparagraph (D) the order. proval for commercial distribution of the applies shall be submitted to the Secretary ‘‘(iii) If the Secretary determines that such drug in that country, which if in a language not later than 120 days before the drug with a supplemental application regarding the other than English, shall be accompanied by the difference is introduced for commercial U.S. label drug would not be approved, the an English translation verified to be com- distribution in a permitted country, unless Secretary shall— plete and accurate, with the name, address, the country requires that distribution of the ‘‘(I) order that the importation of the drug and a brief statement of the qualifications of drug with the difference begin less than 120 involved from the permitted country cease, the person that made the translation; days after the country requires the dif- or provide that an order under clause (ii), if ‘‘(III) include a right of reference to the ap- ference. any, remains in effect; plication under section 505(b) for the U.S. ‘‘(II) OTHER APPROVAL NOTICES.—A notice ‘‘(II) notify the permitted country that ap- label drug; and under clause (i) to which subparagraph (E) proved the drug for commercial distribution ‘‘(IV) include such additional information applies shall be submitted to the Secretary of the determination; and as the Secretary may require. not later than the day on which the drug ‘‘(III) promptly notify registered exporters, ‘‘(iii) TIMING OF SUBMISSION OF APPLICA- with the difference is introduced for com- registered importers, the Federal Trade TION.—An application under section 505(b) re- mercial distribution in a permitted country. Commission, and the Assistant Attorney quired under clause (i) shall be submitted to ‘‘(III) OTHER NOTICES.—A notice under General of the determination. the Secretary not later than the day on clause (i) to which subparagraph (F) applies ‘‘(iv) If the Secretary determines that such which the information referred to in clause shall be submitted to the Secretary on the a supplemental application regarding the (ii)(II) is submitted to the government of the date that the drug is first introduced for U.S. label drug would be approved, the Sec- permitted country. commercial distribution in a permitted retary shall vacate the order under clause ‘‘(iv) NOTICE OF DECISION ON APPLICATION.— country and annually thereafter. (ii), if any, permit importation of the drug The Secretary shall promptly notify reg- ‘‘(vi) REVIEW BY SECRETARY.— under subsection (a), and promptly notify istered exporters, registered importers, the ‘‘(I) IN GENERAL.—In this paragraph, the registered exporters, registered importers, Federal Trade Commission, and the Assist- difference in a drug that may be imported the Federal Trade Commission, and the As- ant Attorney General of a determination to under subsection (a) from the U.S. label drug sistant Attorney General of the determina- approve or to disapprove an application shall be treated by the Secretary as if it was tion. under section 505(b) required under clause (i). a manufacturing change to the U.S. label ‘‘(E) NOTICE; DRUG DIFFERENCE NOT REQUIR- ‘‘(v) RELATED ACTIVE INGREDIENTS.—For drug under section 506A. ING PRIOR APPROVAL.—In the case of a notice purposes of clause (i)(II), 2 active ingredients ‘‘(II) REVIEW BY THE SECRETARY.—The Sec- under subparagraph (C)(i) that includes a dif- are related if they are— retary shall review and approve or dis- ference that would, under section ‘‘(I) the same; or approve the difference in a notice submitted 506A(d)(3)(B)(ii), not require the approval of ‘‘(II) different salts, esters, or complexes of under clause (i), if required under section a supplemental application before the dif- the same moiety. 506A, not later than 120 days after the date ference could be made to the U.S. label drug ‘‘(3) SECTION 502; LABELING.— on which the notice is submitted. the following shall occur: ‘‘(A) IMPORTATION BY REGISTERED IM- ‘‘(III) ESTABLISHMENT INSPECTION.—If re- ‘‘(i) During the period in which the notice PORTER.— view of such difference would require an in- is being reviewed by the Secretary, the au- ‘‘(i) IN GENERAL.—In the case of a quali- spection by the Secretary of the establish- thority under this subsection to import the fying drug that is imported or offered for im- ment in which the drug is manufactured, drug involved continues in effect. port by a registered importer, such drug

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00082 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S189 shall be considered to be in compliance with assigns to those persons responsibility for information that is available to the public in section 502 if the drug bears— dispensing such qualifying drugs to individ- any media. ‘‘(I) a copy of the labeling approved for the uals. ‘‘(3) NOTICE.—The Secretary may notify, as drug under section 505, without regard to ‘‘(i) INDIVIDUALS; CONDITIONS FOR IMPORTA- appropriate, registered exporters, registered whether the copy bears the trademark in- TION FROM CANADA.— importers, wholesalers, pharmacies, or the volved; ‘‘(1) IN GENERAL.—For purposes of sub- public of a recall or withdrawal of a prescrip- ‘‘(II) the name of the manufacturer and lo- section (a)(2)(B), the importation of a quali- tion drug in a permitted country.’’. cation of the manufacturer; fying drug by an individual is in accordance (b) PROHIBITED ACTS.—The Federal Food, ‘‘(III) the lot number assigned by the man- with this subsection if the following condi- Drug, and Cosmetic Act is amended— ufacturer; and tions are met: (1) in section 301 (21 U.S.C. 331), by striking ‘‘(IV) the name, location, and registration ‘‘(A) The drug is accompanied by a copy of paragraph (aa) and inserting the following: number of the importer. a prescription for the drug, which prescrip- ‘‘(aa)(1) The sale or trade by a pharmacist, ‘‘(ii) REQUEST FOR COPY OF THE LABELING.— tion— or by a business organization of which the The Secretary shall provide such copy to the ‘‘(i) is valid under applicable Federal and pharmacist is a part, of a qualifying drug registered importer involved, upon request of State laws; and that under section 804(a)(2)(A) was imported the importer. ‘‘(ii) was issued by a practitioner who, by the pharmacist, other than— ‘‘(B) IMPORTATION BY INDIVIDUAL.—In the under the law of a State of which the indi- ‘‘(A) a sale at retail made pursuant to dis- case of a qualifying drug that is imported or vidual is a resident, or in which the indi- pensing the drug to a customer of the phar- offered for import by a registered exporter to vidual receives care from the practitioner macist or organization; or an individual, such drug shall be considered who issues the prescription, is authorized to ‘‘(B) a sale or trade of the drug to a phar- to be in compliance with section 502 if the administer prescription drugs. macy or a wholesaler registered to import drug bears a label providing the directions ‘‘(B) The drug is accompanied by a copy of drugs under section 804. ‘‘(2) The sale or trade by an individual of a for use by the consumer, and bears a copy of the documentation that was required under qualifying drug that under section any special labeling that would be required the law or regulations of Canada as a condi- 804(a)(2)(B) was imported by the individual. by the Secretary had the drug been dispensed tion of dispensing the drug to the individual. ‘‘(3) The making of a materially false, fic- by a pharmacist in the United States, with- ‘‘(C) The copies referred to in subpara- titious, or fraudulent statement or represen- out regard to whether the special labeling graphs (A)(i) and (B) are marked in a manner tation, or a material omission, in a notice bears the trademark involved. The Secretary sufficient— shall provide to the registered exporter in- under clause (i) of section 804(g)(2)(C) or in ‘‘(i) to indicate that the prescription, and volved a copy of the special labeling, upon an application required under section the equivalent document in Canada, have request of the exporter. 804(g)(2)(G), or the failure to submit such a been filled; and ‘‘(4) SECTION 501; STANDARDS FOR REFUSING notice or application. ‘‘(ii) to prevent a duplicative filling by an- ADMISSION.— ‘‘(4) The importation of a drug in violation other pharmacist. ‘‘(A) IN GENERAL.—For purposes of adminis- of a requirement under section 804.’’; and ‘‘(D) The individual has provided to the trative and judicial procedure, there is a pre- (2) in section 303(a) (21 U.S.C. 333(a)), by registered exporter a complete list of all sumption that a drug proposed for export or striking paragraph (6) and inserting the fol- drugs used by the individual for review by import under subsection (a) is in compliance lowing: the individuals who dispense the drug. with section 501 if the drug is in compliance ‘‘(6) Notwithstanding subsection (a), any with subsection (c). ‘‘(E) The quantity of the drug does not ex- person that knowingly violates section ceed a 90-day supply. ‘‘(B) STANDARDS FOR REFUSING ADMISSION.— 301(aa) (3) or (4) shall be imprisoned not more A qualifying drug exported under subsection ‘‘(F) The drug is not an ineligible subpart than 10 years, or fined in accordance with (a) from a registered exporter or imported by H drug. For purposes of this section, a pre- title 18, United States Code, or both.’’. a registered importer may be refused admis- scription drug is an ‘ineligible subpart H (c) IMPLEMENTATION.— sion into the United States if 1 or more of drug’ if the drug was approved by the Sec- (1) RULEMAKING.— the following applies: retary under subpart H of part 314 of title 21, (A) IN GENERAL.— ‘‘(i) The shipping container appears dam- Code of Federal Regulations (relating to ac- (i) PROMULGATION BY SECRETARY.—Not aged in a way that may affect the strength, celerated approval), with restrictions under later than 90 days after the date of the enact- quality, or purity of the drug. section 520 of such part to assure safe use, ment of this Act, the Secretary of Health ‘‘(ii) The Secretary becomes aware that— and the Secretary has published in the Fed- and Human Services shall promulgate an in- ‘‘(I) the drug may be counterfeit; eral Register a notice that the Secretary has terim rule for implementing section 804 of ‘‘(II) the drug may have been prepared, determined that good cause exists to pro- the Federal Food, Drug, and Cosmetic Act, packed, or held under insanitary conditions; hibit the drug from being imported pursuant as added by subsection (a) of this section. or to this subsection. Such rule shall be developed and promul- ‘‘(III) the methods used in, or the facilities ‘‘(2) NOTICE REGARDING DRUG REFUSED AD- gated by the Secretary without providing or controls used for, the manufacturing, MISSION.—If a registered exporter ships a general notice of proposed rulemaking. Not processing, packing, or holding of the drug drug to an individual pursuant to subsection later than 1 year after the date on which the do not conform to good manufacturing prac- (a)(2)(B) and the drug is refused admission to interim rule is promulgated, the Secretary tice. the United States, a written notice shall be shall, in accordance with procedures under ‘‘(iii) The Secretary has obtained an in- sent to the individual and to the exporter section 553 of title 5, United States Code, junction under section 302 that prohibits the that informs the individual and the exporter promulgate a final rule for implementing distribution of the drug in interstate com- of such refusal and the reason for the refusal. such section 804, which may incorporate by merce. ‘‘(j) MAINTENANCE OF RECORDS AND SAM- reference provisions of the interim rule, to ‘‘(iv) The Secretary has under section PLES.—A registration condition is that the the extent that such provisions are not 505(e) withdrawn approval of the drug. importer or exporter involved shall— modified. ‘‘(v) The manufacturer of the drug has in- ‘‘(1) maintain records required under this (ii) EFFECT OF RULES.—The rules promul- stituted a recall of the drug. section for not less than 2 years; and gated under clause (i) shall permit the im- ‘‘(vi) If the qualifying drug is exported ‘‘(2) maintain samples of each lot of a drug portation of prescription drugs— from a registered exporter to an individual required under this section for not less than (I) from registered exporters by individuals and 1 or more of the following applies: 2 years. effective on the date of the promulgation of ‘‘(I) The shipping container for such drug ‘‘(k) DRUG RECALLS.— the interim rule; does not bear the markings required under ‘‘(1) MANUFACTURERS.—A person that man- (II) from Canada by registered importers subsection (d)(2). ufactures a prescription drug imported from effective on the date of the promulgation of ‘‘(II) The markings on the shipping con- a permitted country under this section shall the interim rule; and tainer appear to be counterfeit. promptly inform the Secretary— (III) from Australia, a member country of ‘‘(III) The shipping container or markings ‘‘(A) if the drug is recalled or withdrawn the European Union as of January 1, 2003, appear to have been tampered with. from the market in a permitted country; Japan, New Zealand, or Switzerland by reg- ‘‘(h) LICENSING AS PHARMACIST.—A reg- ‘‘(B) how the drug may be identified, in- istered importers on the date that is 1 year istration condition is that the exporter in- cluding lot number; and after the date of the enactment of this Act. volved agrees that a qualifying drug will be ‘‘(C) the reason for the recall or with- (B) CERTAIN EXPORTERS.—The interim rule exported to an individual only if the Sec- drawal. under subparagraph (A) shall provide that, in retary has verified that— ‘‘(2) SECRETARY.—With respect to each per- the review of registrations submitted under ‘‘(1) the exporter is authorized under Cana- mitted country, the Secretary shall— subsection (b) of the section 804 referred to dian law to dispense prescription drugs; and ‘‘(A) enter into an agreement with the gov- in such subparagraph, registrations sub- ‘‘(2) the exporter employs persons that are ernment of the country to receive informa- mitted by entities in Canada that are signifi- licensed under Canadian law to dispense pre- tion about recalls and withdrawals of pre- cant exporters of prescription drugs to indi- scription drugs in sufficient number to dis- scription drugs in the country; or viduals in the United States as of the date of pense safely the qualifying drugs exported by ‘‘(B) monitor recalls and withdrawals of the enactment of this Act will have priority the exporter to individuals, and the exporter prescription drugs in the country using any during the period in which the interim rule

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00083 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S190 CONGRESSIONAL RECORD — SENATE January 24, 2005 under subparagraph (A) is in effect. During (i) to indicate that the prescription, and ‘‘(4) publicly, privately, or otherwise refuse such period, the reference in subsection the equivalent document in Canada, have to do business with a registered exporter or (b)(2)(A) of such section 804 to 90 days (relat- been filled; and other person that exports prescription drugs ing to approval or disapproval of registra- (ii) to prevent a duplicative filling by an- to the United States under section 804 of tions) is, as applied to such entities, deemed other pharmacist. such Act or with a registered importer or to be 30 days. (F) The quantity of the drug does not ex- other person that distributes, sells, or uses (C) DRUGS FOR IMPORT FROM CANADA.—The ceed a 90-day supply. prescription drugs imported to the United notices with respect to drugs to be imported (3) FACILITATION OF CANADIAN IMPORTS.— States under section 804 of such Act; from Canada that are required under sub- Not less than 15 days after the enactment of ‘‘(5) specifically restrict supplies of pre- section (g)(2)(C)(i)(I) of such section 804 and this Act and until the expiration of the 60- scription drugs to a registered exporter or that require approval under subsection day period that begins on the date on which other person that exports prescription drugs (g)(2)(D) or (E) of such section 804 shall be the interim rule under paragraph (1)(A) is to the United States under section 804 of submitted to the Secretary not later than 30 promulgated, the Secretary shall, through such Act or to a registered importer or other days after the date of enactment of this Act. the Internet website of the Food and Drug person that distributes, sells, or uses pre- The notices with respect to drugs to be im- Administration, make readily available to scription drugs imported to the United ported from Canada that are required under the public a list of persons licensed in Can- States under section 804 of such Act; subsection (g)(2)(C)(i) of such section 804 and ada to dispense prescription drugs who are ‘‘(6) fail to submit a notice under sub- that do not require approval under sub- willing to export drugs under paragraph (2) section (g)(2)(C)(i) of section 804 of such Act, section (g)(2)(D) or (E) of such section 804 to individuals in the United States. fail to submit such a notice on or before the shall be submitted to the Secretary not later (4) EFFECT OF PROVISIONS.—The amend- date specified in subsection (g)(2)(C)(v) of than 90 days after the date of enactment of ments made in subsection (d), section 6, and section 804 of such Act, submit such a notice this Act. section 7 of this Act shall have no effect with that makes a materially false, fictitious, or (D) DRUGS FOR IMPORT FROM OTHER COUN- respect to imports made under paragraph (2). fraudulent statement, or fail to provide TRIES.—The notices with respect to drugs to (d) AMENDMENT OF CERTAIN PROVISION.— promptly any information requested by the be imported from Australia, a member coun- Section 801 of the Federal Food, Drug, and Secretary of Health and Human Services to try of the European Union as of January 1, Cosmetic Act (21 U.S.C. 381) is amended by review such a notice; 2003, Japan, New Zealand, or Switzerland striking subsection (g) and inserting the fol- ‘‘(7) fail to submit an application required that are required under subsection lowing: under subsection (g)(2)(G) of section 804 of (g)(2)(C)(i)(I) of such section 804 and that re- ‘‘(g) With respect to a prescription drug such Act, fail to submit such an application quire approval under subsection (g)(2)(D) or that is imported or offered for import into on or before the date specified in subsection (E) of such section 804 shall be submitted to the United States by an individual who is (g)(2)(G)(ii) of section 804 of such Act, submit the Secretary not later than 180 days after not in the business of such importation, that such an application that makes a materially the date of enactment of this Act. The no- is not shipped by a registered exporter under false, fictitious, or fraudulent statement, or tices with respect to drugs to be imported section 804, and that is refused admission fail to provide promptly any information re- from such countries that are required under under subsection (a), the Secretary shall no- quested by the Secretary of Health and subsection (g)(2)(C)(i)(II) of such section 804 tify the individual that— Human Services to review such an applica- and that do not require approval under sub- ‘‘(1) the drug has been refused admission tion; section (g)(2)(D) or (E) of such section 804 because the drug was not a lawful import ‘‘(8) cause there to be a difference (includ- shall be submitted to the Secretary not later under section 804; ing a difference in active ingredient, route of than 270 days after the date of enactment of ‘‘(2) the drug is not otherwise subject to a administration, dosage form, strength, for- this Act. waiver of the requirements of subsection (a); mulation, manufacturing establishment, (2) PERSONAL IMPORTATION FROM CANADA.— ‘‘(3) the individual may under section 804 manufacturing process, or person that manu- Until the expiration of the 60-day period be- lawfully import certain prescription drugs factures the drug) between a prescription ginning on the date on which the interim from Canadian exporters registered with the drug for distribution in the United States rule under paragraph (1)(A) is promulgated, Secretary; and and a prescription drug for distribution in an individual may import a prescription drug ‘‘(4) the individual can find information Australia, Canada, a member country of the from Canada for personal use or for the use about such importation, including a list of European Union as of January 1, 2003, Japan, of a family member of the individual (rather registered exporters, on the Internet website New Zealand, or Switzerland for the purpose than for resale), subject to compliance with of the Food and Drug Administration.’’. of restricting importation of the drug to the the following conditions: (e) ANTICOMPETITIVE PRACTICES RELATING United States under section 804 of such Act; (A) The drug is not— TO IMPORTING AND EXPORTING DRUGS TO THE ‘‘(9) refuse to allow an inspection author- (i) a controlled substance, as defined in UNITED STATES.— ized under section 804 of such Act of an es- section 102 of the Controlled Substances Act (1) IN GENERAL.—The Clayton Act (15 tablishment that manufactures a prescrip- (21 U.S.C. 802); U.S.C. 12 et seq.) is amended by adding at the tion drug that is offered for import under (ii) a biological product, as defined in sec- end the following: such section; tion 351 of the Public Health Service Act (42 ‘‘SEC. 27. RESTRAINT OF TRADE REGARDING PRE- ‘‘(10) fail to conform to the methods used U.S.C. 262); SCRIPTION DRUGS. in, or the facilities used for, the manufac- (iii) an infused drug, including a peritoneal ‘‘(a) IN GENERAL.—It shall be unlawful for turing, processing, packing, or holding of a dialysis solution; any person engaged in commerce, directly or prescription drug offered for import under (iv) an intravenously injected drug; indirectly to— section 804 to good manufacturing practice (v) a drug that is inhaled during surgery; ‘‘(1) charge a higher price for prescription under such Act; or or drugs sold to a registered exporter or other ‘‘(11) engage in any other action that the (vi) a drug approved by the Secretary person that exports prescription drugs to the Federal Trade Commission determines to un- under subpart H of part 314 of title 21, Code United States under section 804 of the Fed- fairly restrict competition under section 804 of Federal Regulations (relating to acceler- eral Food, Drug, and Cosmetic Act than the of such Act. ated approval) with restrictions under sec- price that is charged to another person that ‘‘(b) PRESUMPTION.—A difference (including tion 520 of such part to assure safe use. is in the same country and that does not ex- a difference in active ingredient, route of ad- (B) The drug is dispensed by a person li- port prescription drugs into the United ministration, dosage form, strength, formu- censed in Canada to dispense such drugs. States under section 804 of such Act; lation, manufacturing establishment, manu- (C) The drug is accompanied by a copy of ‘‘(2) charge a higher price for prescription facturing process, or person that manufac- the prescription for the drug, which prescrip- drugs sold to a registered importer or other tures the drug) between a prescription drug tion— person that distributes, sells, or uses pre- for distribution in the United States and a (i) is valid under applicable Federal and scription drugs imported to the United prescription drug for distribution in Aus- State laws; and States under section 804 of such Act than the tralia, Canada, a member country of the Eu- (ii) was issued by a practitioner who, under price that is charged to another person in ropean Union as of January 1, 2003, Japan, the law of a State of which the individual is the United States that does not import pre- New Zealand, or Switzerland made after Jan- a resident, or in which the individual re- scription drugs under section 804 of such Act, uary 1, 2004, shall be presumed to be for the ceives care from the practitioner who issues or that does not distribute, sell, or use such purpose of restricting importation of the the prescription, is authorized to administer drugs; drug to the United States under section 804 prescription drugs. ‘‘(3) deny supplies of prescription drugs to of the Federal Food, Drug, and Cosmetic Act (D) The drug is accompanied by a copy of a registered exporter or other person that ex- unless— the document that was required in Canada as ports prescription drugs to the United States ‘‘(1) the person manufacturing the drug for a condition of dispensing the drug to the in- under section 804 of such Act or to a reg- distribution in the United States proves that dividual. istered importer or other person that distrib- the difference was required by the country in (E) The copies referred to in subparagraphs utes, sells, or uses prescription drugs im- which the drug is distributed; (C) and (D) are marked in a manner suffi- ported to the United States under section 804 ‘‘(2) the Secretary of Health and Human cient— of such Act; Services, acting through the Commissioner

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00084 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S191 of Food and Drug, determines that the dif- ‘‘(p)(1) Waivers under this subsection are in SEC. 105. DISPOSITION OF CERTAIN DRUGS DE- ference was necessary to improve the safety addition to, and independent of, the waiver NIED ADMISSION INTO UNITED or efficacy of the drug; or pursuant to section 804(a)(2)(B). STATES. ‘‘(3) the person manufacturing the drug for ‘‘(2) With respect to the standards referred (a) IN GENERAL.—Chapter VIII of the Fed- distribution in the United States has given to in subsection (d)(1), the Secretary shall eral Food, Drug, and Cosmetic Act (21 U.S.C. notice to the Secretary of Health and Human establish by regulation a waiver of such 381 et seq.), as amended by section 102, is fur- Services under subsection (g)(2)(C)(i) of sec- standards in the case of the importation by ther amended by adding at the end the fol- tion 804 of such Act that the drug for dis- an individual of a drug into the United lowing section: tribution in the United States is not dif- States in the following circumstances: ‘‘SEC. 805. DISPOSITION OF CERTAIN DRUGS DE- ferent from a drug for distribution in not ‘‘(A) The drug was dispensed to the indi- NIED ADMISSION. fewer than half of those countries. vidual while the individual was in the United ‘‘(a) IN GENERAL.—The Secretary of Home- ‘‘(c) AFFIRMATIVE DEFENSE.—It shall be an States, the drug was dispensed by a phar- land Security shall refuse admission to a affirmative defense to a charge that a person macist or by a practitioner licensed by law shipment of drugs that is imported or offered has violated paragraph (1), (2), (3), (4), or (5) to administer the drug, and the individual for import into the United States if the ship- of subsection (a) that the higher prices traveled from the United States with the ment has a declared value of less than $10,000 charged for prescription drugs sold to a per- drug. and the drugs are in violation of any stand- son, the denial of supplies of prescription ‘‘(B) The individual is entering the United ard referred to in section 801(a) or 801(d)(1), drugs to a person, the refusal to do business States and the drug accompanies the indi- including any drugs imported or offered for with a person, or the specific restriction or vidual at the time of entry. import under enforcement policies prohib- delay of supplies to a person is not based, in ‘‘(C) The drug does not appear to the Sec- ited under section 801(q). whole or in part, on— retary to be adulterated. ‘‘(b) IMPORTATION UNDER SECTION 804.—In ‘‘(1) the person exporting or importing pre- ‘‘(D) The quantity of the drug does not ex- the case of a drug that under section 804 is scription drugs to the United States under ceed a 90-day supply. imported or offered for import from a reg- section 804 of the Federal Food, Drug, and ‘‘(E) The drug is accompanied by a state- istered exporter, the reference in subsection Cosmetic Act; or ment that the individual seeks to import the (a) to standards referred to in section 801(a) ‘‘(2) the person distributing, selling, or drug into the United States under a personal or 801(d)(1) shall be considered a reference to using prescription drugs imported to the importation waiver. standards referred to in section 804(g)(4)(B). United States under section 804 of such Act. ‘‘(F) Such additional standards as the Sec- ‘‘(c) DESTRUCTION OF VIOLATIVE SHIP- ‘‘(d) DEFINITIONS.—In this section: retary determines to be appropriate to pro- MENTS.—Drugs refused admission under sub- ‘‘(1) PRESCRIPTION DRUG.—The term ‘pre- tect the public health. scription drug’ means a drug that is de- ‘‘(3) With respect to the standards referred section (a) or (b) shall be destroyed, subject scribed in section 503(b)(1) of the Federal to in subsections (a) and (d)(1), the Secretary to subsection (e). Section 801(b) does not au- Food, Drug, and Cosmetic Act (21 U.S.C. shall establish by regulation a waiver of such thorize the delivery of the drugs pursuant to 353(b)(1)). standards in the case of the importation by the execution of a bond, and the drugs may ‘‘(2) REGISTERED IMPORTER.—The term ‘reg- an individual of a drug into the United not be exported. istered importer’ has the meaning given such States in the following circumstances: ‘‘(d) CERTAIN PROCEDURES.— term in section 804 of the Federal Food, ‘‘(A) The drug was dispensed to the indi- ‘‘(1) IN GENERAL.—The refusal of admission Drug, and Cosmetic Act. vidual while the individual was in a foreign and destruction of drugs under this section ‘‘(3) REGISTERED EXPORTER.—The term ‘reg- country, and the drug was dispensed in ac- may be carried out without notice to the im- istered exporter’ has the same meaning as in cordance with the laws and regulations of porter, owner, or consignee of the drugs ex- section 804 of the Federal Food, Drug, and such country. cept as required by section 801(g) or section Cosmetic Act.’’. ‘‘(B) The individual is entering the United 804(i)(2). The issuance of receipts for the (2) APPLICABILITY OF AMENDMENTS TO IM- States and the drug accompanies the indi- drugs, and recordkeeping activities regard- PORTATION UNDER THE PHARMACEUTICAL MAR- vidual at the time of entry. ing the drugs, may be carried out on a sum- KET ACCESS AND FAIR TRADE ACT OF 2004.— ‘‘(C) The drug is approved for commercial mary basis. (A) PERSONAL IMPORTATION FROM CANADA.— distribution in the foreign country in which ‘‘(2) OBJECTIVE OF PROCEDURES.—Proce- Paragraphs (1) through (5) and (11) of sub- the drug was obtained. dures promulgated under paragraph (1) shall section (a) of section 27 of the Clayton Act ‘‘(D) The drug does not appear to the Sec- be designed toward the objective of ensuring (15 U.S.C. et seq.) (as amended by paragraph retary to be adulterated. that, with respect to efficiently utilizing (1)) shall apply with respect to the importa- ‘‘(E) The quantity of the drug does not ex- Federal resources available for carrying out tion of drugs from Canada under subsection ceed— this section, a substantial majority of ship- (c)(2). ‘‘(i) a 90-day supply if the drug is dispensed ments of drugs subject to subsection (a) or (B) NOTICES RESPECTING DRUG FOR IM- in Australia, Canada, a member country of (b) are identified and refused admission and PORT.—Paragraph (6) of subsection (a) of sec- the European Union as of January 1, 2003, destroyed. tion 27 of the Clayton Act (15 U.S.C. et seq.) Japan, New Zealand, or Switzerland; or ‘‘(e) EVIDENCE EXCEPTION.—Drugs may not (as amended by paragraph (1)) shall apply ‘‘(ii) a 14-day supply otherwise. be destroyed under subsection (c) to the ex- with respect to notices required under sec- ‘‘(F) The drug is accompanied by a state- tent that the Attorney General of the United tion 804(g)(2)(C)(i) of the Federal Food Drug ment that the individual seeks to import the States determines that the drugs should be and Cosmetic Act (21 U.S.C. 384(g)(2)(C)(i)) drug into the United States under a personal preserved as evidence or potential evidence that are not submitted by the dates required importation waiver. with respect to an offense against the United under subsections (c)(1)(C) and (D). ‘‘(G) Such additional standards as the Sec- States. (f) EXHAUSTION.— retary determines to be appropriate to pro- ‘‘(f) RULE OF CONSTRUCTION.—This section (1) IN GENERAL.—Section 271 of title 35, tect the public health. may not be construed as having any legal ef- United States Code, is amended— ‘‘(q) The Secretary may not administer fect on applicable law with respect to a ship- (A) by redesignating subsections (h) and (i) any enforcement policy that has the effect of ment of drugs that is imported or offered for as (i) and (j), respectively; and permitting the importation of a prescription import into the United States and has a de- (B) by inserting after subsection (g) the drug into the United States in violation of clared value equal to or greater than following: this Act or section 351 of the Public Health $10,000.’’. ‘‘(h) It shall not be an act of infringement Service Act.’’. (b) PROCEDURES.—Procedures for carrying to use, offer to sell, or sell within the United (b) ADDITIONAL WAIVER.—This Act and the out section 805 of the Federal Food, Drug, States or to import into the United States amendments made by this Act shall not be and Cosmetic Act, as added by subsection any patented invention under section 804 of construed as limiting the authority of the (a), shall be established not later than 90 the Federal Food, Drug, and Cosmetic Act Secretary of Health and Human Services to days after the date of the enactment of this that was first sold abroad by or under au- establish a waiver of the standards referred Act. thority of the owner or licensee of such pat- to in section 801(a) of the Federal Food, SEC. 106. CIVIL ACTIONS REGARDING PROPERTY. ent.’’. Drug, and Cosmetic Act (21 U.S.C. 381(a)) Section 303 of the Federal Food, Drug, and (2) RULE OF CONSTRUCTION.—Nothing in the with respect to the importation by an indi- amendment made by paragraph (1) shall be vidual of a drug into the United States that Cosmetic Act (21 U.S.C. 333) is amended by construed to affect the ability of a patent does not meet such standards, provided that adding at the end the following subsection: owner or licensee to enforce their patent, such waiver is no more permissive than the ‘‘(g)(1) If a person is alienating or disposing subject to such amendment. guidance, as in effect on January 1, 2004, that of property, or intends to alienate or dispose of property, that is obtained as a result of or SEC. 104. ADDITIONAL WAIVERS REGARDING is provided in the item numbered 2 (relating PERSONAL IMPORTATION; EN- to a specific situation, consisting of condi- is traceable to a drug imported in violation FORCEMENT POLICIES OF SEC- tions (a) through (d)) under the heading of section 801(a) or 801(d), the Attorney Gen- RETARY. ‘‘Drugs, Biologics, and Devices’’ in chapter 9 eral may commence a civil action in any (a) IN GENERAL.—Section 801 of the Federal of the FDA/ORA Regulatory Procedures Federal court— Food, Drug, and Cosmetic Act (21 U.S.C. 381) Manual (relating to import operations/ac- ‘‘(A) to enjoin such alienation or disposi- is amended by adding at the end the fol- tions), in the subchapter relating to coverage tion of property; or lowing: of personal importations. ‘‘(B) for a restraining order to—

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‘‘(i) prohibit any person from withdrawing, SEC. 108. REPEAL OF IMPORTATION EXEMPTION ‘‘(4) PROCEDURE.—The provisions of para- transferring, removing, dissipating, or dis- UNDER CONTROLLED SUBSTANCES graphs (3) (other than subparagraph (A)), (4), posing of any such property or property of IMPORT AND EXPORT ACT. and (5) of section 303(f) shall apply to a viola- equivalent value; and Section 1006 of the Controlled Substances tion under subsection (a) in the same manner ‘‘(ii) appoint a temporary receiver to ad- Import and Export Act (21 U.S.C. 956) is re- as such provisions apply to a violation of a minister such restraining order. pealed. requirement of this Act that relates to de- SEC. 109. EFFECT ON ADMINISTRATION PRAC- vices.’’. ‘‘(2) Proceedings under paragraph (1) shall TICES. (b) RESOURCES.—In addition to fees that be carried out in the same manner as applies Notwithstanding any provision of this Act may be available to the Office of Drug Safety under section 1345 of title 18, United States (and the amendments made by this Act), under sections 735 and 736 of the Federal Code.’’. nothing in this Act (or the amendments Food, Drug, and Cosmetic Act (21 U.S.C. 379g made by this Act) shall be construed to SEC. 107. WHOLESALE DISTRIBUTION OF DRUGS; and 379h), there is authorized to be appro- change, limit, or restrict the practices of the STATEMENTS REGARDING PRIOR priated for the Office of Drug Safety within SALE, PURCHASE, OR TRADE. Food and Drug Administration or the Bureau of Customs and Border Protection in effect the Center for Drug Evaluation and Research (a) STRIKING OF EXEMPTIONS; APPLICABILITY on January 1, 2004, with respect to the im- of the Food and Drug Administration— TO REGISTERED EXPORTERS.—Section 503(e) of portation of prescription drugs into the (1) $30,000,000 for fiscal year 2006; the Federal Food, Drug, and Cosmetic Act United States by an individual, on the per- (2) $40,000,0000 for fiscal year 2007; (21 U.S.C. 353(e)) is amended— son of such individual, for personal use. (3) $50,000,000 for fiscal year 2008; (1) in paragraph (1)— (4) $60,000,000 for fiscal year 2009; and Subtitle B—Ensuring Drug Safety (A) by striking ‘‘and who is not the manu- (5) $70,00,000 for fiscal year 2010. SEC. 121. DRUG SAFETY. facturer or an authorized distributor of SEC. 122. REPORT BY GAO ON DRUG SAFETY. (a) IN GENERAL.—Chapter V of the Federal record of such drug’’; (a) IN GENERAL.—The Government Ac- Food, Drug, and Cosmetic Act (21 U.S.C. 351 (B) by striking ‘‘to an authorized dis- countability Office shall provide for the con- et seq.) is amended by inserting after section tributor of record or’’; and duct of a study concerning measures to in- 506C the following: (C) by striking subparagraph (B) and in- crease the safety of prescription drugs, in- ‘‘SEC. 507. DRUG SAFETY. serting the following: cluding— ‘‘(a) PHASE IV STUDIES.— (1) whether Federal funding levels are ade- ‘‘(B) The fact that a drug subject to sub- ‘‘(1) IN GENERAL.—The Secretary may re- quate to ensure drug safety and whether the section (b) is exported from the United quire that the sponsor of a drug that is ap- uncertainty associated with the Federal States does not with respect to such drug ex- proved or licensed under section 505(c) or budgetary process hampers planning; empt any person that is engaged in the busi- under section 351 of the Public Health Serv- (2) whether the lack of permanent leader- ness of the wholesale distribution of the drug ice Act conduct one or more studies, to be ship at the Food and Drug Administration from providing the statement described in completed by a date after approval or licens- has contributed to problems in decision- subparagraph (A) to the person that receives ing of such drug specified by the Secretary, making and in transmitting information to the drug pursuant to the export of the drug. that confirms or refutes an empirical or the- the public concerning the safety of drugs; oretical hypothesis of a significant safety ‘‘(C)(i) The Secretary may by regulation (3) whether prolonged and rampant vacan- issue with the drug, raised with respect to establish requirements that supersede sub- cies within the Food and Drug Administra- the drug or the class of the drug, found in— paragraph (A) (referred to in this subpara- tion have contributed to the ability of the ‘‘(A) the MedWatch post-market surveil- graph as ‘alternative requirements’) to iden- Food and Drug Administration to properly lance system; tify the chain of custody of a drug subject to examine drug safety; ‘‘(B) a clinical or epidemiological study; or subsection (b) from the manufacturer of the (4) whether conflicts of interest exist that ‘‘(C) the scientific literature. drug throughout the wholesale distribution unduly bias approvals or later reviews of ‘‘(b) SUPPLEMENTS.—The sponsor of a drug of the drug to a pharmacist who intends to drug safety; sell the drug at retail if the Secretary deter- that is approved or licensed under section 505(c) or under section 351 of the Public (5) whether employees of the Food and mines that the alternative requirements, Drug Administration have been improperly which may include anti-counterfeiting or Health Service Act shall promptly submit the results of a study required under sub- threatened or face any barriers to raising track-and-trace technologies, will identify concerns about drug safety; such chain of custody or the identity of the section (a) as a supplement to the applica- tion for the drug. (6) whether the procedure of the Food and drug with equal certainty to the require- Drug Administration for notifying the public ments of subparagraph (A), and that the al- ‘‘(c) PUBLIC DISCLOSURE.—The Secretary shall, not less than every quarter, make pub- of possible drug safety issues is appropriate ternative requirements are economically and and complied with; technically feasible. lic each study required under subsection (a), including a description of, and the reason (7) whether further measures or authorities ‘‘(ii) If the Secretary promulgates a final for, the study, the required completion date, are necessary to ensure the safety of drugs; rule to establish such alternative require- and whether the study has been completed, and ments, the final rule in addition shall, with through— (8) other matters determined appropriate. respect to the registration condition estab- ‘‘(1) a notice in the Federal Register; and (b) REPORT.—Not later than 90 days after lished in clause (i) of section 804(c)(3)(B), es- ‘‘(2) a database that shall be readily acces- the date of enactment of this Act, the Gov- tablish a condition equivalent to the alter- sible to the public through the Internet site ernment Accountability Office shall prepare native requirements, and such equivalent of the Food and Drug Administration. and submit to the appropriate committees of condition supersedes such clause (i).’’; ‘‘(d) CIVIL PENALTIES.— Congress a report concerning the results of (2) in paragraph (2)(A), by adding at the ‘‘(1) IN GENERAL.—The Secretary may order the study conducted under subsection (a). end the following: ‘‘The preceding sentence the sponsor of a drug that is approved or li- Such report shall include a proposal (includ- may not be construed as having any applica- censed under section 505(c) or under section ing legislative language) for improving the bility with respect to a registered exporter 351 of the Public Health Service Act to pay safety of prescription drugs. under section 804.’’; and a civil penalty, subject to paragraph (2), if, TITLE II—MODERNIZING THE HEALTH (3) in paragraph (3), by striking ‘‘and sub- after providing an opportunity for an infor- CARE SYSTEM section (d)—’’ in the matter preceding sub- mal hearing, the Secretary determines paragraph (A) and all that follows through SEC. 201. AMENDMENT TO THE PUBLIC HEALTH that— SERVICE ACT. ‘‘the term ‘wholesale distribution’ means’’ in ‘‘(A) the sponsor has failed to complete a The Public Health Service Act (42 U.S.C. subparagraph (B) and inserting the fol- study required under subsection (a) by the 201 et seq.) is amended by adding at the end lowing: ‘‘and subsection (d), the term ‘whole- date specified by the Secretary; and thereof the following: sale distribution’ means’’. ‘‘(B) there is no legitimate reason for such failure. ‘‘TITLE XXIX—HEALTH CARE (b) CONFORMING AMENDMENT.—Section INFORMATION TECHNOLOGY 503(d) of the Federal Food, Drug, and Cos- ‘‘(2) AMOUNT OF PENALTIES.—The civil pen- metic Act (21 U.S.C. 353(d)) is amended by alty order under paragraph (1) may be as- ‘‘SEC. 2901. DEFINITIONS. adding at the end the following: sessed for each day the completion of a re- ‘‘In this title: quired study of a drug is delayed in an ‘‘(1) COVERAGE AREA.—The term ‘coverage ‘‘(4) Each manufacturer of a drug subject amount that is not more than 3 times the area’ means the boundaries of a local health to subsection (b) shall maintain at its cor- gross revenue received by the sponsor for the information infrastructure. porate offices a current list of the authorized average sales of the drug in a day. ‘‘(2) DIRECTOR.—The term ‘Director’ means distributors of record of such drug. ‘‘(3) RECORDS RELATING TO GROSS REV- the Director of the Office of Health Informa- ‘‘(5) For purposes of this subsection, the ENUE.—When provided an opportunity for an tion Technology. term ‘authorized distributors of record’ informal hearing under paragraph (1), a drug ‘‘(3) HEALTH CARE PROVIDER.—The term means those distributors with whom a manu- sponsor shall provide to the Secretary all ‘health care provider’ means a hospital, facturer has established an ongoing relation- records relating to the gross revenues re- skilled nursing facility, home health entity, ship to distribute such manufacturer’s prod- ceived by the sponsor for average sales of the health care clinic, community health center, ucts.’’. drug in a day. group practice (as defined in section

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00086 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S193 1877(h)(4) of the Social Security Act, includ- ‘‘(B) direct all health information tech- nology on the quality and efficiency of pa- ing practices with only 1 physician), and any nology activity within the Federal Govern- tient care; and other facility or clinician determined appro- ment, including approving or disapproving ‘‘(C) review Federal payment structures priate by the Director. agency policies submitted under paragraph and differentials for health care providers ‘‘(4) HEALTH INFORMATION TECHNOLOGY.— (3); that utilize health information technology The term ‘health information technology’ ‘‘(C) work with public and private health systems. means a computerized system that— information technology stakeholders to im- ‘‘(7) TECHNICAL ASSISTANCE.—The Office ‘‘(A) is consistent with the standards de- plement the national strategy described in shall utilize existing private sector quality veloped pursuant to section 2903; paragraph (1); and improvement organizations to— ‘‘(B) permits the secure electronic trans- ‘‘(D) ensure that health information tech- ‘‘(A) promote the adoption of health infor- mission of information to other health care nology is utilized as fully as practicable in mation technology among healthcare pro- providers and public health entities; and carrying out health surveillance efforts. viders; and ‘‘(C) includes— ‘‘(3) AGENCY POLICIES.— ‘‘(B) provide technical assistance con- ‘‘(i) an electronic health record (EHR) that ‘‘(A) IN GENERAL.—The Office shall, in ac- cerning the implementation of health infor- provides access in real-time to the patient’s cordance with this paragraph, approve or dis- mation technology to healthcare providers. complete medical record; approve the policies of Federal departments ‘‘(8) FEDERAL REIMBURSEMENT.— ‘‘(ii) a personal health record (PHR) or agencies with respect to any policy pro- ‘‘(A) IN GENERAL.—Not later than 6 months through which an individual (and anyone au- posed to be implemented by such agency or after the date of enactment of this title, the thorized by such individual) can maintain department that would significantly affect Office shall make recommendations to the and manage their health information; that agency or department’s use of health in- President and the Secretary of Health and ‘‘(iii) computerized provider order entry formation technology. Human Services on changes to Federal reim- (CPOE) technology that permits the elec- ‘‘(B) SUBMISSION OF PROPOSAL.—The head of bursement and payment structures that tronic ordering of diagnostic and treatment any Federal Government agency or depart- would encourage the adoption of information services, including prescription drugs; ment that desires to implement any policy technology (IT) to improve health care qual- ‘‘(iv) decision support to assist physicians with respect to such agency or department ity and safety. in making clinical decisions by providing that would significantly affect that agency ‘‘(B) PLAN.—Not later than 90 days after re- electronic alerts and reminders to improve or department’s use of health information ceiving recommendations under subpara- compliance with best practices, promote reg- technology shall submit an implementation graph (A), the Secretary shall provide to the ular screenings and other preventive prac- proposal to the Office at least 60 days prior relevant Committees of Congress a report tices, and facilitate diagnoses and treat- to the proposed date of the implementation that provides, with respect to each rec- ments; of such policy. ommendation, a plan for the implementa- ‘‘(v) error notification procedures so that a ‘‘(C) APPROVAL OR DISAPPROVAL.—Not later tion, or an explanation as to why implemen- warning is generated if an order is entered than 60 days after the date on which a pro- tation is inadvisable, of such recommenda- that is likely to lead to a significant adverse posal is received under subparagraph (B), the tions. The Office shall continue to monitor outcome for the patient; and Office shall determine whether to approve federally funded and supported information the implementation of such proposal. In ‘‘(vi) tools to allow for the collection, anal- technology and quality initiatives (including making such determination, the Office shall ysis, and reporting of data on adverse events, the initiatives authorized in this title), and consider whether the proposal is consistent near misses, and the quality of care provided periodically update recommendations to the with the national strategy described in para- to the patient. President and the Secretary. graph (1). If the Office fails to make a deter- ‘‘(5) LOCAL HEALTH INFORMATION INFRA- ‘‘(d) RESOURCES.—The President shall STRUCTURES.—The term ‘local health infor- mination within such 60-day period, such make available to the Office, the resources, mation infrastructure’ means an inde- proposal shall be deemed to be approved. both financial and otherwise, necessary to pendent organization of health care entities ‘‘(D) FAILURE TO APPROVE.—Except as oth- enable the Director to carry out the purposes established for the purpose of linking health erwise provided for by law, a proposal sub- of, and perform the duties and responsibil- information systems to electronically shared mitted under subparagraph (B) may not be ities of the Office under, this section. information. A local health information in- implemented unless such proposal is ap- ‘‘(e) DETAIL OF FEDERAL EMPLOYEES.—Upon frastructure may not be a single business en- proved or deemed to be approved under sub- the request of the Director, the head of any tity. paragraph (C). Federal agency is authorized to detail, with- ‘‘(6) OFFICE.—The term ‘Office’ means the ‘‘(4) COORDINATION.—The Office shall— out reimbursement from the Office, any of Office of Health Information Technology es- ‘‘(A) encourage the development and adop- the personnel of such agency to the Office to tablished under section 2902. tion of clinical, messaging, and decision sup- assist it in carrying out its duties under this port health information data standards, pur- ‘‘SEC. 2902. OFFICE OF HEALTH INFORMATION section. Any such detail shall not interrupt TECHNOLOGY. suant to the requirements of section 2903; or otherwise affect the civil service status or ‘‘(a) ESTABLISHMENT.—There is established ‘‘(B) ensure the maintenance and imple- privileges of the Federal employee. within the executive office of the President mentation of the data standards described in ‘‘SEC. 2903. PROMOTING THE INTEROPERABILITY an Office of Health Information Technology. subparagraph (A); OF HEALTH CARE INFORMATION The Office shall be headed by a Director to ‘‘(C) oversee and coordinate the health in- TECHNOLOGY SYSTEMS. be appointed by the President. The Director formation technology efforts of the Federal ‘‘(a) DEVELOPMENT, AND FEDERAL GOVERN- shall report directly to the President. Government; MENT ADOPTION, OF STANDARDS.— ‘‘(b) PURPOSE.—It shall be the purpose of ‘‘(D) ensure the compliance of the Federal ‘‘(1) ADOPTION.— the Office to— Government with Federally adopted health ‘‘(A) IN GENERAL.—Not later than 2 years ‘‘(1) improve the quality and increase the information technology data standards; after the date of the enactment of this title, efficiency of health care delivery through ‘‘(E) ensure that the Federal Government the Director, in collaboration with the Con- the use of health information technology; consults and collaborates on decision mak- solidated Health Informatics Initiative (or a ‘‘(2) provide national leadership relating ing with respect to health information tech- successor organization to such Initiative), to, and encourage the adoption of, health in- nology with the private sector and other in- shall provide for the adoption by the Federal formation technology; terested parties; and Government of national data and commu- ‘‘(3) direct all health information tech- ‘‘(F) in consultation with private sector, nication health information technology nology activities within the Federal Govern- adopt certification and testing criteria to de- standards that promote the efficient ex- ment; and termine if electronic health information sys- change of data between varieties of provider ‘‘(4) facilitate the interaction between the tems interoperate. health information technology systems. In Federal Government and the private sector ‘‘(5) COMMUNICATION.—The Office shall— carrying out the preceding sentence, the Di- relating to health information technology ‘‘(A) act as the point of contact for the pri- rector may adopt existing standards. Except development and use. vate sector with respect to the use of health as otherwise provided for in this title, stand- ‘‘(c) DUTIES AND RESPONSIBILITIES.—The Of- information technology; and ards adopted under this section shall be vol- fice shall be responsible for the following: ‘‘(B) work with the private sector to col- untary for private sector entities. ‘‘(1) NATIONAL STRATEGY.—The Office shall lect and disseminate best health information ‘‘(B) GRANTS OR CONTRACTS.—The Director develop a national strategy for improving technology practices. may utilize grants or contracts to provide the quality and enhancing the efficiency of ‘‘(6) EVALUATION AND DISSEMINATION.—The for the private sector development of stand- health care through the improved use of Office shall coordinate with the Agency for ards for adoption by the Federal Government health information technology and the cre- Health Research and Quality and other Fed- under subparagraph (A). ation of a National Health Information In- eral agencies to— ‘‘(C) DEFINITION.—In this paragraph, the frastructure. ‘‘(A) evaluate and disseminate information term ‘provide for’ means that the Director ‘‘(2) FEDERAL LEADERSHIP.—The Office relating to evidence of the costs and benefits shall promulgate, and each Federal agency shall— of health information technology and to or department shall adopt, regulations to en- ‘‘(A) serve as the principle advisor to the whom those costs and benefits accrue; sure that each such agency or department President concerning health information ‘‘(B) evaluate and disseminate information complies with the requirements of sub- technology; on the impact of health information tech- section (b).

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‘‘(2) REQUIREMENTS.—The standards devel- terest on loans made to eligible entities to tional or local health care information infra- oped and adopted under paragraph (1) shall enable such entities— structure; and be designed to— ‘‘(1) to implement local health information ‘‘(C) to train staff, maintain health infor- ‘‘(A) enable health information technology infrastructures to facilitate the development mation technology systems, and maintain to be used for the collection and use of clini- of interoperability across health care set- adequate security and privacy protocols; and cally specific data; tings to improve quality and efficiency; or ‘‘(3) to carry out any other activities deter- ‘‘(B) promote the interoperability of health ‘‘(2) to facilitate the purchase and adoption mined appropriate by the Director. care information across health care settings; of health information technology to improve ‘‘(d) SPECIAL CONSIDERATIONS FOR CERTAIN ‘‘(C) facilitate clinical decision support quality and efficiency. ENTITIES.—In awarding loan guarantees through the use of health information tech- ‘‘(b) ELIGIBILITY.—To be eligible to receive under this section, the Director shall give nology; and a loan guarantee under subsection (a) an en- special consideration to eligible entities ‘‘(D) ensure the privacy and confidentiality tity shall— that— of medical records. ‘‘(1) with respect to an entity desiring a ‘‘(1) provide service to low-income and un- ‘‘(3) PUBLIC PRIVATE PARTNERSHIP.—Con- loan guarantee— derserved populations; and sistent with activities being carried out on ‘‘(A) under subsection (a)(1), be a coalition ‘‘(2) agree to electronically submit the in- the date of enactment of this title, including of entities that represent an independent formation described in paragraphs (3) and (4) the Consolidated Health Informatics Initia- consortium of health care stakeholders with- of subsection (b) on a daily basis. tive (or a successor organization to such Ini- in a community that— ‘‘(e) SPECIAL CONSIDERATIONS FOR LOCAL tiative), health information technology ‘‘(i) includes— HEALTH INFORMATION INFRASTRUCTURES.—In standards shall be adopted by the Director ‘‘(I) physicians (as defined in section awarding loan guarantees under this section under paragraph (1) at the conclusion of a 1881(r)(1) of the Social Security Act); to local health information infrastructures, collaborative process that includes consulta- ‘‘(II) hospitals; and the Director shall give special consideration tion between the Federal Government and ‘‘(III) group health plans or other health to eligible entities that— private sector health care and information insurance issuers (as such terms are defined ‘‘(1) include at least 50 percent of the pa- technology stakeholders. in section 2791); and tients living in the designated coverage area; ‘‘(4) PRIVACY AND SECURITY.—The regula- ‘‘(ii) may include any other health care ‘‘(2) incorporate public health surveillance tions promulgated by the Secretary under providers; or and reporting into the overall architecture part C of title XI of the Social Security Act ‘‘(B) under subsection (a)(2) be a health of the proposed infrastructure; and (42 U.S.C. 1320d et seq.) and sections 261, 262, care provider; ‘‘(3) link local health information infra- 263, and 264 of the Health Insurance Port- ‘‘(2) to the extent practicable, adopt the structures. ability and Accountability Act of 1996 (42 national health information technology ‘‘(f) AREAS OF SPECIFIC INTEREST.—In U.S.C. 1320d–2 note) with respect to the pri- standards adopted under section 2903; awarding loan guarantees under this section, vacy, confidentiality, and security of health ‘‘(3) provide assurances that the entity the Director shall include— information shall apply to the implementa- shall submit to the Director regular reports ‘‘(1) entities with a coverage area that in- tion of programs and activities under this on the activities carried out under the loan cludes an entire State; and title. guarantee, including— ‘‘(2) entities with a multi-state coverage ‘‘(5) PILOT TESTS.—To the extent practical, ‘‘(A) a description of the financial costs area. the Director shall pilot test the health infor- and benefits of the project involved and of ‘‘(g) ADMINISTRATIVE PROVISIONS.— mation technology data standards developed the entities to which such costs and benefits ‘‘(1) AGGREGATE AMOUNT.— under paragraph (1) prior to their implemen- accrue; ‘‘(A) IN GENERAL.—Except as provided in tation under this section. ‘‘(B) a description of the impact of the subparagraph (B), the aggregate amount of ‘‘(6) DISSEMINATION.— project on health care quality and safety; principal of loans guaranteed under sub- ‘‘(A) IN GENERAL.—The Director shall en- and section (a) with respect to an eligible entity sure that the standards adopted under para- ‘‘(C) a description of any reduction in du- may not exceed $5,000,000. In any 12-month graph (1) are widely disseminated to inter- plicative or unnecessary care as a result of period the amount disbursed to an eligible ested stakeholders. the project involved; entity under this section (by a lender under ‘‘(B) LICENSING.—To facilitate the dissemi- ‘‘(4) provide assurances that not later than a guaranteed loan) may not exceed $5,000,000. nation and implementation of the standards 30 days after the development of the stand- ‘‘(B) EXCEPTION.—The cumulative total of developed and adopted under paragraph (1), ard quality measures pursuant to section the principal of the loans outstanding at any the Director may license such standards, or 2906, the entity shall submit to the Director time to which guarantees have been issued utilize other means, to ensure the wide- regular reports on such measures, including under subsection (a) may not exceed such spread use of such standards. provider level data and analysis of the im- limitations as may be specified in appropria- ‘‘(b) IMPLEMENTATION OF STANDARDS.— pact of information technology on such tion Acts. ‘‘(1) PURCHASE OF SYSTEMS BY THE SEC- measures; ‘‘(2) PROTECTION OF FEDERAL GOVERN- RETARY.—Effective beginning on the date ‘‘(5) prepare and submit to the Director an MENT.— that is 1 year after the adoption of the tech- application at such time, in such manner, ‘‘(A) IN GENERAL.—The Director may not nology standards pursuant to subsection (a), and containing such information as the Di- approve an application for a loan guarantee the Secretary shall not purchase any health rector may require. under this section unless the Director deter- care information technology system unless ‘‘(c) USE OF FUNDS.—Amounts received mines that— such system is in compliance with the stand- under a loan guarantee under subsection (a) ‘‘(i) the terms, conditions, security (if ards adopted under subsection (a), nor shall shall be used— any), and schedule and amount of repay- the Director approve any proposal pursuant ‘‘(1) with respect to a loan guarantee de- ments with respect to the loan are sufficient to section 2902(c)(3) unless such proposal uti- scribed in subsection (a)(1)— to protect the financial interests of the lizes systems that are in compliance with ‘‘(A) to develop a plan for the implementa- United States and are otherwise reasonable, the standards adopted under subsection (a). tion of a local health information infrastruc- including a determination that the rate of ‘‘(2) RECIPIENTS OF FEDERAL FUNDS.—Effec- ture under this section; interest does not exceed such percent per tive on the date described in paragraph (1), ‘‘(B) to establish systems for the sharing of annum on the principal obligation out- no appropriated funds may be used to pur- data in accordance with the national health standing as the Director determines to be chase a health care information technology information technology standards developed reasonable, taking into account the range of system unless such system is in compliance under section 2903; interest rates prevailing in the private mar- with applicable standards adopted under sub- ‘‘(C) to purchase directly related inte- ket for loans with similar maturities, terms, section (a). grated hardware and software to establish an conditions, and security and the risks as- ‘‘(c) MODIFICATION OF STANDARDS.—The Di- interoperable health information technology sumed by the United States; and rector shall provide for ongoing oversight of system that is capable of linking to a local ‘‘(ii) the loan would not be available on the health information technology standards health care information infrastructure; and reasonable terms and conditions without the developed under subsection (a) to— ‘‘(D) to train staff, maintain health infor- enactment of this section. ‘‘(1) identify gaps or other shortcomings in mation technology systems, and maintain ‘‘(B) RECOVERY.— such standards; and adequate security and privacy protocols; ‘‘(i) IN GENERAL.—The United States shall ‘‘(2) modify such standards when deter- ‘‘(2) with respect to a loan guarantee de- be entitled to recover from the applicant for mined appropriate or develop additional scribed in subsection (a)(2)— a loan guarantee under this section the standards, in collaboration with standard ‘‘(A) to develop a plan for the purchase and amount of any payment made pursuant to setting organizations. installation of health information tech- such loan guarantee, unless the Director for ‘‘SEC. 2904. LOAN GUARANTEES FOR THE ADOP- nology; good cause waives such right of recovery, TION OF HEALTH INFORMATION ‘‘(B) to purchase directly related inte- and, upon making any such payment, the TECHNOLOGY. grated hardware and software to establish an United States shall be subrogated to all of ‘‘(a) IN GENERAL.—The Director shall guar- interoperable health information technology the rights of the recipient of the payments antee payment of the principal of and the in- system that is capable of linking to a na- with respect to which the loan was made.

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‘‘(ii) MODIFICATION OF TERMS.—Any terms ‘‘(c) USE OF FUNDS.—Amounts received ‘‘(1) IN GENERAL.—There is authorized to be and conditions applicable to a loan guar- under a grant under subsection (a) shall be appropriated to carry out this section, such antee under this section may be modified by used to— sums as may be necessary for each of fiscal the Director to the extent the Director de- ‘‘(1) with respect to a grant described in years 2006 through 2011. termines it to be consistent with the finan- subsection (a)(1)— ‘‘(2) AVAILABILITY.—Amounts appropriated cial interest of the United States. ‘‘(A) to develop a plan for the implementa- under paragraph (1) shall remain available ‘‘(3) DEFAULTS.—The Director may take tion of a local health information infrastruc- for obligation until expended.’’. such action as the Director deems appro- ture under this section; SEC. 202. STANDARDIZED MEASURES OF QUALITY priate to protect the interest of the United ‘‘(B) to establish systems for the sharing of HEALTH CARE AND DATA COLLEC- States in the event of a default on a loan data in accordance with the national health TION. guaranteed under this section, including tak- information technology standards developed Title XXIX of the Public Health Service ing possession of, holding, and using real under section 2903; Act, as added by section 201, is amended by property pledged as security for such a loan ‘‘(C) to implement, enhance, or upgrade a adding at the end the following: guarantee. comprehensive, electronic health informa- ‘‘SEC. 2906. STANDARDIZED MEASURES OF QUAL- ITY HEALTH CARE. ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— tion technology system; and ‘‘(a) IN GENERAL.— ‘‘(1) IN GENERAL.—There is authorized to be ‘‘(D) to maintain adequate security and privacy protocols; ‘‘(1) COLLABORATION.—The Secretary of appropriated to carry out this section, such Health and Human Services, the Secretary of sums as may be necessary for each of fiscal ‘‘(2) with respect to a grant described in subsection (a)(2)— Defense, and the Secretary of Veterans Af- years 2006 through 2011. fairs (referred to in this section as the ‘Sec- ‘‘(2) AVAILABILITY.—Amounts appropriated ‘‘(A) to develop a plan for the purchase and installation of health information tech- retaries’), in consultation with the Quality under subparagraph (A) shall remain avail- Interagency Coordination Taskforce (as es- able for obligation until expended. nology; ‘‘(B) to purchase directly related inte- tablished by Executive Order on March 13, ‘‘SEC. 2905. GRANTS FOR THE PURCHASE OF grated hardware and software to establish an 1998), the Institute of Medicine, the Joint HEALTH INFORMATION TECH- interoperable health information technology Commission on Accreditation of Healthcare NOLOGY. system that is capable of linking to a na- Organizations, the National Committee for ‘‘(a) IN GENERAL.—The Director may award tional or local health care information infra- Quality Assurance, the American Health competitive grants to eligible entities— structure; and Quality Association, the National Quality ‘‘(1) to implement local health information ‘‘(C) to train staff, maintain health infor- Forum, the Medicare Payment Advisory infrastructures to facilitate the development mation technology systems, and maintain Committee, and other individuals and orga- of interoperability across health care set- adequate security and privacy protocols; nizations determined appropriate by the Sec- tings; or ‘‘(3) maintain adequate security and pri- retaries, shall establish uniform health care ‘‘(2) to facilitate the purchase and adoption vacy protocols; and quality measures to assess the effectiveness, of health information technology. ‘‘(4) carry out any other activities deter- timeliness, patient-centeredness, efficiency, equity, and safety of care delivered across all ‘‘(b) ELIGIBILITY.—To be eligible to receive mined appropriate by the Director. federally supported health delivery pro- a grant under subsection (a) an entity shall— ‘‘(d) SPECIAL CONSIDERATIONS FOR CERTAIN grams. ‘‘(1) demonstrate financial need to the Di- ENTITIES.—In awarding grants under this section, the Director shall give special con- ‘‘(2) DEVELOPMENT OF MEASURES.—Not later rector; sideration to eligible entities that— than 18 months after the date of enactment ‘‘(2) with respect to an entity desiring a ‘‘(1) provide service to low-income and un- of this title, the Secretaries shall develop grant— derserved populations; and standardized sets of quality measures for ‘‘(A) under subsection (a)(1), represent an ‘‘(2) agree to electronically submit the in- each of the 20 priority areas for improvement independent consortium of health care formation described in paragraphs (4) and (5) in health care quality as identified by the In- stakeholders within a community that— of subsection (b). stitute of Medicine in their report entitled ‘‘(i) includes— ‘‘(e) SPECIAL CONSIDERATIONS FOR LOCAL ‘Priority Areas for National Action’ in 2003, ‘‘(I) physicians (as defined in section HEALTH INFORMATION INFRASTRUCTURES.—In or other such areas as identified by the Sec- 1881(r)(1) of the Social Security Act); awarding grants under this section to local retaries in order to assist beneficiaries in ‘‘(II) hospitals; and health information infrastructures, the Di- making informed choices about health plans ‘‘(III) group health plans or other health rector shall give special consideration to eli- or care delivery systems. The selection of ap- insurance issuers (as such terms are defined gible entities that— propriate quality indicators under this sub- in section 2791); and ‘‘(1) include at least 50 percent of the pa- section shall include the evaluation criteria ‘‘(ii) may include any other health care tients living in the designated coverage area; formulated by clinical professionals, con- providers; or ‘‘(2) incorporate public health surveillance sumers, and data collection experts. ‘‘(B) under subsection (a)(2) be a health and reporting into the overall architecture ‘‘(3) PILOT TESTING.—Each federally sup- care provider that provides health care serv- of the proposed infrastructure; and ported health delivery program may conduct ices to low-income and underserved popu- ‘‘(3) link local health information infra- a pilot test of the quality measures devel- lations; structures; oped under paragraph (2) that shall include a ‘‘(3) adopt the national health information ‘‘(f) AREAS OF SPECIFIC INTEREST.—In collection of patient-level data and a public technology standards developed under sec- awarding grants under this section, the Di- release of comparative performance reports. tion 2903; rector shall include— ‘‘(b) PUBLIC REPORTING REQUIREMENTS.— ‘‘(4) provide assurances that the entity ‘‘(1) entities with a coverage area that in- The Secretaries, working collaboratively, shall submit to the Director regular reports cludes an entire State; and shall establish public reporting requirements on the activities carried out under the loan ‘‘(2) entities with a multi-state coverage for clinicians, institutional providers, and guarantee, including— area. health plans in each of the federally sup- ‘‘(A) a description of the financial costs ‘‘(g) MATCHING REQUIREMENT.— ported health delivery program described in and benefits of the project involved and of ‘‘(1) IN GENERAL.—The Director may not subsection (a). Such requirements shall pro- the entities to which such costs and benefits make a grant under this section to an entity vide that the entities described in the pre- accrue; unless the entity agrees that, with respect to ceding sentence shall report to the appro- ‘‘(B) a description of the impact of the the costs to be incurred by the entity in car- priate Secretary on the measures developed project on health care quality and safety; rying out the infrastructure program for under subsection (a). and which the grant was awarded, the entity will ‘‘(c) FULL IMPLEMENTATION.—The Secre- ‘‘(C) a description of any reduction in du- make available (directly or through dona- taries, working collaboratively, shall imple- plicative or unnecessary care as a result of tions from public or private entities) non- ment all sets of quality measures and report- the project involved; Federal contributions toward such costs in ing systems developed under subsections (a) ‘‘(5) provide assurances that not later than an amount equal to not less than 20 percent and (b) by not later than the date that is 1 30 days after the development of the stand- of such costs ($1 for each $5 of Federal funds year after the date on which the measures ard quality measures pursuant to section provided under the grant). are developed under subsection (a)(2). 2906, the entity shall submit to the Director ‘‘(2) DETERMINATION OF AMOUNT CONTRIB- ‘‘(d) REPORTS.—Not later than 1 year after regular reports on such measures, including UTED.—Non-Federal contributions required the date of enactment of this title, and annu- provider level data and analysis of the im- under paragraph (1) may be in cash or in ally thereafter, the Secretary shall— pact of information technology on such kind, fairly evaluated, including equipment, ‘‘(1) submit to Congress a report that de- measures; technology, or services. Amounts provided tails the collaborative efforts carried out ‘‘(6) prepare and submit to the Director an by the Federal Government, or services as- under subsection (a), the progress made on application at such time, in such manner, sisted or subsidized to any significant extent standardizing quality indicators throughout and containing such information as the Di- by the Federal Government, may not be in- the Federal Government, and the state of rector may require; and cluded in determining the amount of such quality measurement for priority areas that ‘‘(7) agree to provide matching funds in ac- non-Federal contributions. links data to the report submitted under cordance with subsection (g). ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— paragraph (2) for the year involved; and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00089 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S196 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(2) submit to Congress a report that de- parent working full time over the course of many States have stopped doing aggressive tails areas of clinical care requiring further the year. outreach and have raised premiums and cost- research necessary to establish effective (C) It is estimated that 50 percent of all sharing requirements on families under these clinical treatments that will serve as a basis legal immigrant children in families with in- programs. In addition, 8 States stopped en- for additional quality indicators. come that is less than 200 percent of the Fed- rollment in SCHIP for a period of time be- ‘‘(e) COMPARATIVE QUALITY REPORTS.—Be- eral poverty line are uninsured. In States tween April 2003 and July 2004. As a result, ginning not later than 3 years after the date without programs to cover immigrant chil- SCHIP enrollment fell by 200,000 children for of enactment of this title, in order to make dren, 57 percent of non-citizen children are the first time in the program’s history. comparative quality information available uninsured. (G) It is estimated that nearly 50 percent to health care consumers, including mem- (D) Children in the Southern and Western of children covered through SCHIP do not re- bers of health disparity populations, health parts of the United States were nearly 1.7 main in the program due to reenrollment professionals, public health officials, re- times more likely to be uninsured than chil- barriers. A recent study found that between searchers, and other appropriate individuals dren in the Northeast. In the Northeast, 9.4 10 and 40 percent of these children are ‘‘lost’’ and entities, the Secretaries shall provide for percent of children are uninsured while in in the system. Difficult renewal policies and the pooling, analysis, and dissemination of the Midwest, 8.3 percent are uninsured. The reenrollment barriers make seamless cov- quality measures collected under this sec- South’s rate of uninsured children is 14.3 per- erage in SCHIP unattainable. Studies indi- tion. Nothing in this section shall be con- cent while the West has an uninsured rate of cate that as many as 67 percent of children strued as modifying the privacy standards 13 percent. who were eligible but not enrolled for SCHIP under the Health Insurance Portability and (E) Children’s health care needs are ne- had applied for coverage but were denied due Accountability Act of 1996 (Public Law 104– glected in the United States. One-quarter of to procedural issues. 191). young children in the United States are not (H) While the medicaid program and ‘‘(f) ONGOING EVALUATION OF USE.—The fully up to date on their basic immuniza- SCHIP expansions to date have done much to Secretary of Health and Human Services tions. One-third of children with chronic offset what otherwise would have been a sig- shall ensure the ongoing evaluation of the asthma do not get a prescription for the nec- nificant loss of coverage among children be- use of the health care quality measures es- essary medications to manage the disease. cause of declining access to employer cov- tablished under this section. (F) According to the Centers for Disease erage, the shortcomings of previous expan- ‘‘(g) EVALUATION AND REGULATIONS.— Control and Prevention, nearly 1⁄2 of all unin- sions, such as the failure to enroll all eligible ‘‘(1) EVALUATION.— sured children have not had a well-child visit children and caps on enrollment in SCHIP ‘‘(A) IN GENERAL.—The Secretary shall, di- in the past year. One out of every 5 children because of under-funding, also are clear. rectly or indirectly through a contract with has problems accessing needed care, and 1 CHAPTER 1—EXPANDED COVERAGE OF another entity, conduct an evaluation of the out of every 4 children do not receive annual CHILDREN UNDER MEDICAID AND SCHIP collaborative efforts of the Secretaries to es- dental exams. One in 6 uninsured children SEC. 301. STATE OPTION TO RECEIVE 100 PER- tablish uniform health care quality measures had a delayed or unmet medical need in the CENT FMAP FOR MEDICAL ASSIST- and reporting requirements for federally sup- past year. Minority children are less likely ANCE FOR CHILDREN IN POVERTY ported health care delivery programs as re- to receive proven treatments such as pre- IN EXCHANGE FOR EXPANDED COV- quired under this section. scription medications to treat chronic dis- ERAGE OF CHILDREN IN WORKING POOR FAMILIES UNDER TITLE XXI. ‘‘(B) REPORT.—Not later than 1 year after ease. (a) STATE OPTION.—Title XIX of the Social the date of enactment of this title, the Sec- (G) There are 7,600,000 young adults be- Security Act (42 U.S.C. 1396 et seq.) is retary of Health and Human Services shall tween the ages of 19 and 20. In the United amended by redesignating section 1936 as submit a report to the appropriate commit- States, approximately 28 percent, or 2,100,000 individuals, of this group are uninsured. section 1937, and by inserting after section tees of Congress concerning the results of 1935 the following: the evaluation under subparagraph (A). (H) Chronic illness and disability among ‘‘STATE OPTION FOR INCREASED FMAP FOR MED- ‘‘(2) REGULATIONS.— children are on the rise. Children most at ICAL ASSISTANCE FOR CHILDREN IN POVERTY ‘‘(A) PROPOSED.—Not later than 6 months risk for chronic illness and disability are IN EXCHANGE FOR EXPANDED COVERAGE OF after the date on which the report is sub- children who are most likely to be poor and CHILDREN IN WORKING POOR FAMILIES UNDER mitted under paragraph (1)(B), the Secretary uninsured. TITLE XXI shall publish proposed regulations regarding (2) ROLE OF THE MEDICAID AND STATE CHIL- the application of the uniform health care DREN’S HEALTH INSURANCE PROGRAMS.— ‘‘SEC. 1936. (a) 100 PERCENT FMAP.— quality measures and reporting requirements (A) The medicaid program and SCHIP serve ‘‘(1) IN GENERAL.—Notwithstanding any described in this section to federally sup- as a crucial health safety net for 30,000,000 other provision of this title, in the case of a ported health delivery programs. children. During the recent economic down- State that, through an amendment to each turn and the highest number of uninsured in- ‘‘(B) FINAL REGULATIONS.—Not later than 1 of its State plans under this title and title year after the date on which the report is dividuals ever recorded in the United States, XXI (or to a waiver of either such plan), submitted under paragraph (1)(B), the Sec- the medicaid program and SCHIP offset agrees to satisfy the conditions described in retary shall publish final regulations regard- losses in employer-sponsored coverage. While subsections (b), (c), and (d) the Federal med- ing the uniform health care quality meas- the number of children living in low-income ical assistance percentage shall be 100 per- families increased by 2,000,000 between 2000 ures and reporting requirements described in cent with respect to the total amount ex- and 2003, the number of uninsured children this section. pended by the State for providing medical fell due to the medicaid program and SCHIP. ‘‘(h) DEFINITIONS.—In this section, the assistance under this title for each fiscal term ‘federally supported health delivery (B) In 2003, 25,000,000 children were enrolled year quarter beginning on or after the date 1 program’ means a program that is funded by in the medicaid program, accounting for ⁄2 of described in subsection (e) for children whose the Federal Government under which health all enrollees and only 19 percent of total pro- family income does not exceed 100 percent of care items or services are delivered directly gram costs. the poverty line. to patients.’’. (C) The medicaid program and SCHIP do ‘‘(2) LIMITATION ON SCOPE OF APPLICATION more than just fill in the gaps. Gains in pub- OF INCREASE.—The increase in the Federal TITLE III—MAKING HEALTH CARE MORE lic coverage have reduced the percentage of medical assistance percentage for a State AFFORDABLE FOR CHILDREN AND low-income uninsured by a 1⁄3 from 1997 to under this section shall apply only with re- PREGNANT WOMEN 2003. In addition, a recent study found that spect to the total amount expended for pro- Subtitle A—Covering all Children publicly-insured children are more likely to viding medical assistance under this title for SEC. 300. FINDINGS. obtain medical care, preventive care and a fiscal year quarter for children described in Congress makes the following findings: dental care than similar low-income pri- paragraph (1) and shall not apply with re- (1) NEED FOR UNIVERSAL COVERAGE.— vately -insured children. spect to— (A) Currently, there are 9,000,000 children (D) Publicly funded programs such as the ‘‘(A) any other payments made under this under the age of 19 that are uninsured. One medicaid program and SCHIP actually im- title, including disproportionate share hos- out of every 8 children are uninsured while 1 prove children’s health. Children who are pital payments described in section 1923; in 5 Hispanic children and 1 in 7 African currently insured by public programs are in ‘‘(B) payments under title IV or XXI; or American children are uninsured. Three- better health than they were a year ago. Ex- ‘‘(C) any payments made under this title or quarters, approximately 6,800,000, of these pansion of coverage for children and preg- title XXI that are based on the enhanced children are eligible but not enrolled in the nant women under the medicaid program and FMAP described in section 2105(b). medicaid program or the State children’s SCHIP reduces rates of avoidable hos- ‘‘(b) ELIGIBILITY EXPANSIONS.—The condi- health insurance program (SCHIP). Long- pitalizations by 22 percent. tion described in this subsection is that the range studies found that 1 in 3 children went (E) Studies have found that children en- State agrees to do the following: without health insurance for all or part of rolled in public insurance programs experi- ‘‘(1) COVERAGE UNDER MEDICAID OR SCHIP 2002 and 2003. enced a 68 percent improvement in measures FOR CHILDREN IN FAMILIES WHOSE INCOME DOES (B) Low-income children are 3 times as of school performance. NOT EXCEED 300 PERCENT OF THE POVERTY likely as children in higher income families (F) Despite the success of expansions in LINE.— to be uninsured. It is estimated that 65 per- general under the medicaid program and ‘‘(A) IN GENERAL.—The State agrees to pro- cent of uninsured children have at least 1 SCHIP, due to current budget constraints, vide medical assistance under this title or

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child health assistance under title XXI to ANCE PROGRAMS.—The State agrees to accept income, resources, and methodologies ap- children whose family income exceeds the determinations (made within a reasonable plied with respect to children under this title medicaid applicable income level (as defined period, as found by the State, before its use (including under such a waiver) as of Janu- in section 2110(b)(4) but by substituting ‘Jan- for this purpose) of an individual’s family or ary 1, 2005. uary 1, 2005’ for ‘March 31, 1997’), but does household income made by a Federal or ‘‘(2) RULE OF CONSTRUCTION.—Nothing in not exceed 300 percent of the poverty line. State agency (or a public or private entity this section shall be construed as implying ‘‘(B) STATE OPTION TO EXPAND COVERAGE making such determination on behalf of such that a State does not have to comply with THROUGH SUBSIDIZED PURCHASE OF FAMILY agency), including the agencies admin- the minimum income levels required for COVERAGE.—A State may elect to carry out istering the Food Stamp Act of 1977, the children under section 1902(l)(2). subparagraph (A) through the provision of Richard B. Russell National School Lunch ‘‘(e) DATE DESCRIBED.—The date described assistance for the purchase of dependent cov- Act, and the Child Nutrition Act of 1966, not- in this subsection is the date on which, with erage under a group health plan or health in- withstanding any differences in budget unit, respect to a State, a plan amendment that surance coverage if— disregard, deeming, or other methodology, satisfies the requirements of subsections (b), ‘‘(i) the dependent coverage is consistent but only if— (c), and (d) is approved by the Secretary. with the benefit standards under this title or ‘‘(A) such agency has fiscal liabilities or ‘‘(f) DEFINITION OF POVERTY LINE.—In this title XXI, as approved by the Secretary; and responsibilities affected or potentially af- section, the term ‘poverty line’ has the ‘‘(ii) the State provides ‘wrap-around’ cov- fected by such determinations; and meaning given that term in section erage under this title or title XXI. ‘‘(B) any information furnished by such 2110(c)(5).’’. ‘‘(C) DEEMED SATISFACTION FOR CERTAIN agency pursuant to this subparagraph is used (b) CONFORMING AMENDMENTS.— STATES.—A State that, as of January 1, 2005, solely for purposes of determining eligibility (1) The third sentence of section 1905(b) of provides medical assistance under this title for medical assistance under this title or for the Social Security Act (42 U.S.C. 1396d(b)) is or child health assistance under title XXI to child health assistance under title XXI. amended by inserting before the period the children whose family income is 300 percent ‘‘(5) NO ASSETS TEST.—The State agrees to following: ‘‘, and with respect to amounts ex- of the poverty line shall be deemed to satisfy not (or demonstrates that it does not) apply pended for medical assistance for children on this paragraph. any assets or resources test for eligibility or after the date described in subsection (d) ‘‘(2) COVERAGE FOR CHILDREN UNDER AGE under this title or title XXI with respect to of section 1936, in the case of a State that 21.—The State agrees to define a child for children. has, in accordance with such section, an ap- purposes of this title and title XXI as an in- ‘‘(6) ELIGIBILITY DETERMINATIONS AND RE- proved plan amendment under this title and dividual who has not attained 21 years of DETERMINATIONS.— title XXI’’. age. ‘‘(A) IN GENERAL.—The State agrees for (2) Section 1903(f)(4) of the Social Security ‘‘(3) OPPORTUNITY FOR HIGHER INCOME CHIL- purposes of initial eligibility determinations Act (42 U.S.C. 1396b(f)(4)) is amended— DREN TO PURCHASE SCHIP COVERAGE.—The and redeterminations of children under this (A) in subparagraph (C), by adding ‘‘or’’ State agrees to permit any child whose fam- title and title XXI not to require a face-to- after ‘‘section 1611(b)(1),’’; and ily income exceeds 300 percent of the poverty face interview and to permit applications (B) by inserting after subparagraph (C), the line to purchase full or ‘wrap-around’ cov- and renewals by mail, telephone, and the following: erage under title XXI at the full cost of pro- Internet. ‘‘(D) who would not receive such medical viding such coverage, as determined by the ‘‘(B) NONDUPLICATION OF INFORMATION.— assistance but for State electing the option State. ‘‘(i) IN GENERAL.—For purposes of redeter- under section 1936 and satisfying the condi- ‘‘(4) COVERAGE FOR LEGAL IMMIGRANT CHIL- minations of eligibility for currently or pre- tions described in subsections (b), (c), and (d) DREN.—The State agrees to— viously enrolled children under this title and of such section,’’. ‘‘(A) provide medical assistance under this title XXI, the State agrees to use all infor- SEC. 302. ELIMINATION OF CAP ON SCHIP FUND- title and child health assistance under title mation in its possession (including informa- ING FOR STATES THAT EXPAND ELI- GIBILITY FOR CHILDREN. XXI for alien children who are lawfully re- tion available to the State under other Fed- (a) IN GENERAL.—Section 2105 of the Social siding in the United States (including bat- eral or State programs) to determine eligi- Security Act (42 U.S.C. 1397dd) is amended by tered aliens described in section 431(c) of the bility or redetermine continued eligibility adding at the end the following: Personal Responsibility and Work Oppor- before seeking similar information from par- ‘‘(h) GUARANTEED FUNDING FOR CHILD tunity Reconciliation Act of 1996) and who ents. HEALTH ASSISTANCE FOR COVERAGE EXPAN- are otherwise eligible for such assistance in ‘‘(ii) RULE OF CONSTRUCTION.—Nothing in SION STATES.— accordance with section 1903(v)(4) and clause (i) shall be construed as limiting any ‘‘(1) IN GENERAL.—Only in the case of a 2107(e)(1)(E); and obligation of a State to provide notice and a State that has, in accordance with section ‘‘(B) not establish or enforce barriers that fair hearing before denying, terminating, or 1936, an approved plan amendment under this deter applications by such aliens, including reducing a child’s coverage based on such in- title and title XIX, any payment cap that through the application of the removal of formation in the possession of the State. would otherwise apply to the State under the barriers described in subsection (c). ‘‘(7) NO WAITING LIST FOR CHILDREN UNDER this title as a result of having expended all ‘‘(c) REMOVAL OF ENROLLMENT AND ACCESS SCHIP.—The State agrees to not impose any allotments available for expenditure by the BARRIERS.—The condition described in this numerical limitation, waiting list, waiting State with respect to a fiscal year shall not subsection is that the State agrees to do the period, or similar limitation on the eligi- apply with respect to amounts expended by following: bility of children for child health assistance the State on or after the date described in ‘‘(1) PRESUMPTIVE ELIGIBILITY FOR CHIL- under title XXI or to establish or enforce section 1936(d). DREN.—The State agrees to— other barriers to the enrollment of eligible ‘‘(2) APPROPRIATION.—There is appro- ‘‘(A) provide presumptive eligibility for children based on the date of their applica- priated, out of any money in the Treasury children under this title and title XXI in ac- tion for coverage. not otherwise appropriated, such sums as cordance with section 1920A; ‘‘(8) ADEQUATE PROVIDER PAYMENT RATES.— may be necessary for the purpose of paying a ‘‘(B) treat any items or services that are The State agrees to— State described in paragraph (1) for each provided to an uncovered child (as defined in ‘‘(A) establish payment rates for children’s quarter beginning on or after the date de- section 2110(c)(8)) who is determined ineli- health care providers under this title that scribed in section 1936(d), an amount equal to gible for medical assistance under this title are no less than the average of payment the enhanced FMAP of expenditures de- as child health assistance for purposes of rates for similar services for such providers scribed in paragraph (1) and incurred during paying a provider of such items or services, provided under the benchmark benefit pack- such quarter.’’. so long as such items or services would be ages described in section 2103(b); (b) CONFORMING AMENDMENTS.—Section considered child health assistance for a tar- ‘‘(B) establish such rates in amounts that 2104 of the Social Security Act (42 U.S.C. geted low-income child under title XXI. are sufficient to ensure that children en- 1397dd) is amended— ‘‘(2) ADOPTION OF 12-MONTH CONTINUOUS EN- rolled under this title or title XXI have ade- (1) in subsection (a), by inserting ‘‘subject ROLLMENT.—The State agrees to provide that quate access to comprehensive care, in ac- to section 2105(h),’’ after ‘‘under this sec- eligibility for assistance under this title and cordance with the requirements of section tion,’’; title XXI shall not be regularly redetermined 1902(a)(30)(A); and (2) in subsection (b)(1), by inserting ‘‘and more often than once every year for chil- ‘‘(C) include provisions in its contracts section 2105(h)’’ after ‘‘Subject to paragraph dren. with providers under this title guaranteeing (4)’’; and ‘‘(3) ACCEPTANCE OF SELF-DECLARATION OF compliance with these requirements. (3) in subsection (c)(1), by inserting ‘‘sub- INCOME.—The State agrees to permit the ‘‘(d) MAINTENANCE OF MEDICAID ELIGIBILITY ject to section 2105(h),’’ after ‘‘for a fiscal family of a child applying for medical assist- LEVELS FOR CHILDREN.— year,’’. ance under this title or child health assist- ‘‘(1) IN GENERAL.—The condition described CHAPTER 2—STATE OPTIONS FOR INCRE- ance under title XXI to declare and certify in this subsection is that the State agrees to MENTAL CHILD COVERAGE EXPANSIONS by signature under penalty of perjury family maintain eligibility income, resources, and SEC. 311. STATE OPTION TO ENROLL LOW-IN- income for purposes of collecting financial methodologies applied under this title (in- COME CHILDREN OF STATE EM- eligibility information. cluding under a waiver of such title or under PLOYEES IN SCHIP. ‘‘(4) ADOPTION OF ACCEPTANCE OF ELIGI- section 1115) with respect to children that Section 2110(b)(2) of the Social Security BILITY DETERMINATIONS FOR OTHER ASSIST- are no more restrictive than the eligibility Act (42 U.S.C. 1397jj(b)(2)) is amended—

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(1) by redesignating subparagraphs (A) and ‘‘(d) MEDICAL SAVINGS ACCOUNT AND ‘‘(A) the name, address, and TIN of the in- (B) as clauses (i) and (ii), respectively and re- HEALTH SAVINGS ACCOUNT CONTRIBUTIONS.— dividual from whom payments described in aligning the left margins of such clauses ap- ‘‘(1) IN GENERAL.—If a deduction would (but subsection (a) were received, propriately; for paragraph (2)) be allowed under section ‘‘(B) the name, address, and TIN of each de- (2) by striking ‘‘Such term’’ and inserting 220 or 223 to the taxpayer for a payment for pendent child (as so defined) who was pro- the following: the taxable year to the medical savings ac- vided by such person with coverage under ‘‘(A) IN GENERAL.—Such term’’; and count or health savings account of an indi- creditable health insurance by reason of such (3) by adding at the end the following: vidual, subsection (a) shall be applied by payments and the period of such coverage, ‘‘(B) STATE OPTION TO ENROLL LOW-INCOME treating such payment as a payment for and CHILDREN OF STATE EMPLOYEES.—At the op- qualified health insurance for such indi- ‘‘(C) such other information as the Sec- tion of a State, subparagraph (A)(ii) shall vidual. retary may reasonably prescribe. not apply to any low-income child who would ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc- ‘‘(c) CREDITABLE HEALTH INSURANCE.—For otherwise be eligible for child health assist- tion shall be allowed under section 220 or 223 purposes of this section, the term ‘creditable ance under this title but for such subpara- for that portion of the payments otherwise health insurance’ means qualified health in- graph.’’. allowable as a deduction under section 220 or surance (as defined in section 36(c)). 223 for the taxable year which is equal to the SEC. 312. STATE OPTION FOR PASSIVE RENEWAL ‘‘(d) STATEMENTS TO BE FURNISHED TO INDI- OF ELIGIBILITY FOR CHILDREN amount of credit allowed for such taxable VIDUALS WITH RESPECT TO WHOM INFORMA- UNDER MEDICAID AND SCHIP. year by reason of this subsection. TION IS REQUIRED.—Every person required to (a) IN GENERAL.—Section 1902(l) of the So- ‘‘(e) SPECIAL RULES.— make a return under subsection (a) shall fur- cial Security Act (42 U.S.C. 1396a(l)) is ‘‘(1) DETERMINATION OF INSURANCE COSTS.— nish to each individual whose name is re- amended by adding at the end the following: The Secretary shall provide rules for the al- quired under subsection (b)(2)(A) to be set ‘‘(5) Notwithstanding any other provision location of the cost of any qualified health of this title, a State may provide that an in- forth in such return a written statement insurance for family coverage to the cov- showing— dividual who has not attained 21 years of age erage of any dependent child under such in- who has been determined eligible for medical ‘‘(1) the name and address of the person re- surance. quired to make such return and the phone assistance under this title shall remain eligi- ‘‘(2) COORDINATION WITH DEDUCTION FOR ble for medical assistance until such time as number of the information contact for such HEALTH INSURANCE COSTS OF SELF-EMPLOYED person, the State has information demonstrating INDIVIDUALS.—In the case of a taxpayer who that the individual is no longer so eligible.’’. ‘‘(2) the aggregate amount of payments de- is eligible to deduct any amount under sec- scribed in subsection (a) received by the per- (b) APPLICATION UNDER TITLE XXI.—Sec- tion 162(l) for the taxable year, this section son required to make such return from the tion 2107(e)(1) of the Social Security Act (42 shall apply only if the taxpayer elects not to U.S.C. 1397gg(e)) is amended— individual to whom the statement is re- claim any amount as a deduction under such quired to be furnished, and (1) by redesignating subparagraphs (B) section for such year. through (D) as subparagraphs (C) through ‘‘(3) the information required under sub- ‘‘(3) COORDINATION WITH MEDICAL EXPENSE (E), respectively; and section (b)(2)(B) with respect to such pay- AND HIGH DEDUCTIBLE HEALTH PLAN DEDUC- (2) by inserting after subparagraph (A), the ments. TIONS.—The amount which would (but for The written statement required under the following: this paragraph) be taken into account by the preceding sentence shall be furnished on or ‘‘(B) Section 1902(l)(5) (relating to passive taxpayer under section 213 or 224 for the tax- before January 31 of the year following the renewal of eligibility for children).’’. able year shall be reduced by the credit (if calendar year for which the return under CHAPTER 3—TAX INCENTIVES FOR any) allowed by this section to the taxpayer subsection (a) is required to be made. HEALTH INSURANCE COVERAGE OF for such year. CHILDREN ‘‘(4) DENIAL OF CREDIT TO DEPENDENTS.—No ‘‘(e) RETURNS WHICH WOULD BE REQUIRED O E ADE BY OR ORE ERSONS SEC. 321. REFUNDABLE CREDIT FOR HEALTH IN- credit shall be allowed under this section to T B M 2 M P .—Except SURANCE COVERAGE OF CHILDREN. any individual with respect to whom a de- to the extent provided in regulations pre- (a) IN GENERAL.—Subpart C of part IV of duction under section 151 is allowable to an- scribed by the Secretary, in the case of any subchapter A of chapter 1 of the Internal other taxpayer for a taxable year beginning amount received by any person on behalf of Revenue Code of 1986 (relating to refundable in the calendar year in which such individ- another person, only the person first receiv- credits) is amended by redesignating section ual’s taxable year begins. ing such amount shall be required to make 36 as section 37 and by inserting after section ‘‘(5) DENIAL OF DOUBLE BENEFIT.—No credit the return under subsection (a).’’. 35 the following new section: shall be allowed under subsection (a) if the (2) ASSESSABLE PENALTIES.— (A) Subparagraph (B) of section 6724(d)(1) ‘‘SEC. 36. HEALTH INSURANCE COVERAGE OF credit under section 35 is allowed and no CHILDREN. credit shall be allowed under 35 if a credit is of such Code (relating to definitions) is amended by redesignating clauses (xiii) ‘‘(a) IN GENERAL.—In the case of an indi- allowed under this section. vidual, there shall be allowed as a credit ‘‘(6) ELECTION NOT TO CLAIM CREDIT.—This through (xviii) as clauses (xiv) through (xix), against the tax imposed by this subtitle an section shall not apply to a taxpayer for any respectively, and by inserting after clause amount equal to so much of the amount paid taxable year if such taxpayer elects to have (xii) the following new clause: during the taxable year, not compensated for this section not apply for such taxable ‘‘(xiii) section 6050U (relating to returns re- by insurance or otherwise, for qualified year.’’. lating to payments for qualified health in- surance),’’. health insurance for each dependent child of (b) INFORMATION REPORTING.— the taxpayer, as exceeds 5 percent of the ad- (B) Paragraph (2) of section 6724(d) of such (1) IN GENERAL.—Subpart B of part III of Code is amended by striking ‘‘or’’ at the end justed gross income of such taxpayer for subchapter A of chapter 61 of the Internal such taxable year. of the next to last subparagraph, by striking Revenue Code of 1986 (relating to informa- the period at the end of the last subpara- ‘‘(b) DEPENDENT CHILD.—For purposes of tion concerning transactions with other per- this section, the term ‘dependent child’ graph and inserting ‘‘, or’’, and by adding at sons) is amended by inserting after section the end the following new subparagraph: means any child (as defined in section 6050T the following new section: 152(f)(1)) who has not attained the age of 19 ‘‘(CC) section 6050U(d) (relating to returns as of the close of the calendar year in which ‘‘SEC. 6050U. RETURNS RELATING TO PAYMENTS relating to payments for qualified health in- FOR QUALIFIED HEALTH INSUR- surance).’’. the taxable year of the taxpayer begins and ANCE. with respect to whom a deduction under sec- (3) CLERICAL AMENDMENT.—The table of tion 151 is allowable to the taxpayer. ‘‘(a) IN GENERAL.—Any governmental unit sections for subpart B of part III of sub- ‘‘(c) QUALIFIED HEALTH INSURANCE.—For or any person who, in connection with a chapter A of chapter 61 of such Code is purposes of this section— trade or business conducted by such person, amended by inserting after the item relating ‘‘(1) IN GENERAL.—The term ‘qualified receives payments during any calendar year to section 6050T the following new item: from any individual for coverage of a depend- health insurance’ means insurance, either ‘‘Sec. 6050U. Returns relating to payments employer-provided or made available under ent child (as defined in section 36(b)) of such individual under creditable health insurance, for qualified health insur- title XIX or XXI of the Social Security Act, ance.’’. which constitutes medical care as defined in shall make the return described in sub- section 213(d) without regard to— section (b) (at such time as the Secretary (c) CONFORMING AMENDMENTS.— ‘‘(A) paragraph (1)(C) thereof, and may by regulations prescribe) with respect (1) Paragraph (2) of section 1324(b) of title ‘‘(B) so much of paragraph (1)(D) thereof as to each individual from whom such pay- 31, United States Code, is amended by insert- relates to qualified long-term care insurance ments were received. ing before the period ‘‘, or from section 36 of contracts. ‘‘(b) FORM AND MANNER OF RETURNS.—A re- such Code’’. ‘‘(2) EXCLUSION OF CERTAIN OTHER CON- turn is described in this subsection if such (2) The table of sections for subpart C of TRACTS.—Such term shall not include insur- return— part IV of subchapter A of chapter 1 of the ance if a substantial portion of its benefits ‘‘(1) is in such form as the Secretary may Internal Revenue Code of 1986 is amended by are excepted benefits (as defined in section prescribe, and striking the last item and inserting the fol- 9832(c)). ‘‘(2) contains— lowing new items:

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‘‘Sec. 36. Health insurance coverage of chil- ‘‘SEC. 2707. REQUIREMENT TO OFFER OPTION TO ‘‘(C) DEFINITION OF POVERTY LINE.—In this dren. PURCHASE DEPENDENT COVERAGE subsection, the term ‘poverty line’ has the FOR CHILDREN. ‘‘Sec. 37. Overpayments of tax.’’. meaning given such term in section ‘‘(a) REQUIREMENTS FOR COVERAGE.—A 2110(c)(5).’’. (d) EFFECTIVE DATE.—The amendments group health plan, and a health insurance (3) PAYMENT FROM TITLE XXI ALLOTMENT made by this section shall apply to taxable issuer providing health insurance coverage FOR MEDICAID EXPANSION COSTS; ELIMINATION years beginning after December 31, 2004. in connection with a group health plan, shall OF COUNTING MEDICAID CHILD PRESUMPTIVE offer an individual who is enrolled in such SEC. 322. FORFEITURE OF PERSONAL EXEMP- ELIGIBILITY COSTS AGAINST TITLE XXI ALLOT- TION FOR ANY CHILD NOT COVERED coverage the option to purchase dependent MENT.—Section 2105(a)(1) of the Social Secu- BY HEALTH INSURANCE. coverage for a child of the individual. rity Act (42 U.S.C. 1397ee(a)(1)) is amended— (a) IN GENERAL.—Section 151(d) of the In- ‘‘(b) NO EMPLOYER CONTRIBUTION RE- QUIRED.—An employer shall not be required (A) in the matter preceding subparagraph ternal Revenue Code of 1986 (relating to ex- (A), by striking ‘‘(or, in the case of expendi- emption amount) is amended by adding at to contribute to the cost of purchasing de- pendent coverage for a child by an individual tures described in subparagraph (B), the Fed- the end the following new paragraph: eral medical assistance percentage (as de- ‘‘(5) REDUCTION OF EXEMPTION AMOUNT FOR who is an employee of such employer. ‘‘(c) DEFINITION OF CHILD.—In this section, fined in the first sentence of section ANY CHILD NOT COVERED BY HEALTH INSUR- the term ‘child’ means an individual who has 1905(b)))’’; and ANCE.— not attained 21 years of age.’’. (B) by striking subparagraph (B) and in- ‘‘(A) IN GENERAL.—Except as otherwise pro- (c) EFFECTIVE DATE.—The amendments serting the following new subparagraph: vided in this paragraph, the exemption made by this section shall apply with respect ‘‘(B) for the provision of medical assistance amount otherwise determined under this to plan years beginning on or after January that is attributable to expenditures de- subsection for any dependent child (as de- 1, 2006. scribed in section 1905(u)(5)(A);’’. fined in section 36(b)) for any taxable year SEC. 332. EFFECTIVE DATE. (b) SCHIP.— shall be reduced by the same percentage as Unless otherwise provided, the amend- (1) COVERAGE.—Title XXI of the Social Se- the percentage of such taxable year during ments made by this subtitle shall take effect curity Act (42 U.S.C. 1397aa et seq.) is amend- which such dependent child was not covered on October 1, 2005, and shall apply to child ed by adding at the end the following new by qualified health insurance (as defined in health assistance and medical assistance section: section 36(c)). provided on or after that date without regard ‘‘SEC. 2111. OPTIONAL COVERAGE OF TARGETED ‘‘(B) FULL REDUCTION IF NO PROOF OF COV- to whether or not final regulations to carry LOW-INCOME PREGNANT WOMEN. ERAGE IS PROVIDED.—For purposes of sub- out such amendments have been promul- ‘‘(a) OPTIONAL COVERAGE.—Notwith- paragraph (A), in the case of any taxpayer gated by such date. who fails to attach to the return of tax for standing any other provision of this title, a Subtitle B—Covering Pregnant Women any taxable year a copy of the statement State may provide for coverage, through an furnished to such taxpayer under section SEC. 351. STATE OPTION TO EXPAND OR ADD amendment to its State child health plan COVERAGE OF PREGNANT WOMEN under section 2102, of pregnancy-related as- 6050U, the percentage reduction under such UNDER THE MEDICAID PROGRAM subparagraph shall be deemed to be 100 per- sistance for targeted low-income pregnant AND STATE CHILDREN’S HEALTH IN- women in accordance with this section, but cent. SURANCE PROGRAM. only if— ‘‘(C) NONAPPLICATION OF PARAGRAPH TO (a) MEDICAID.— ‘‘(1) the State has established an income TAXPAYERS IN LOWEST TAX BRACKET.—This (1) AUTHORITY TO EXPAND COVERAGE.—Sec- paragraph shall not apply to any taxpayer tion 1902(l)(2)(A)(i) of the Social Security Act eligibility level for pregnant women under whose taxable income for the taxable year (42 U.S.C. 1396a(l)(2)(A)(i)) is amended by in- subsection (a)(10)(A)(i)(III) or (l)(2)(A) of sec- does not exceed the initial bracket amount serting ‘‘(or such higher percentage as the tion 1902 that is at least 185 percent of the in- determined under section 1(i)(1)(B).’’. State may elect for purposes of expenditures come official poverty line; and (b) EFFECTIVE DATE.—The amendment for medical assistance for pregnant women ‘‘(2) the State meets the conditions de- made by this section shall apply to taxable described in section 1905(u)(4)(A))’’ after ‘‘185 scribed in section 1905(u)(5)(B). years beginning after December 31, 2004. percent’’. ‘‘(b) DEFINITIONS.—For purposes of this title: CHAPTER 4—MISCELLANEOUS (2) ENHANCED MATCHING FUNDS AVAILABLE IF CERTAIN CONDITIONS MET.—Section 1905 of the ‘‘(1) PREGNANCY-RELATED ASSISTANCE.—The SEC. 331. REQUIREMENT FOR GROUP MARKET Social Security Act (42 U.S.C. 1396d), as term ‘pregnancy-related assistance’ has the HEALTH INSURERS TO OFFER DE- amended by section 311(b)(2), is amended— meaning given the term child health assist- PENDENT COVERAGE OPTION FOR ance in section 2110(a) as if any reference to WORKERS WITH CHILDREN. (A) in the fourth sentence of subsection (b), targeted low-income children were a ref- (a) ERISA.— by striking ‘‘or (u)(4)’’ and inserting ‘‘, (u)(4), erence to targeted low-income pregnant (1) IN GENERAL.—Subpart B of part 7 of sub- or (u)(5)’’; and women, except that the assistance shall be title B of title I of the Employee Retirement (B) in subsection (u)— limited to services related to pregnancy Income Security Act of 1974 (29 U.S.C. 1185 et (i) by redesignating paragraph (5) as para- (which include prenatal, delivery, and seq.) is amended by adding at the end the fol- graph (6); and postpartum services and services described lowing: (ii) by inserting after paragraph (4) the fol- lowing new paragraph: in section 1905(a)(4)(C)) and to other condi- ‘‘SEC. 714. REQUIREMENT TO OFFER OPTION TO ‘‘(5) For purposes of the fourth sentence of tions that may complicate pregnancy. PURCHASE DEPENDENT COVERAGE ‘‘(2) TARGETED LOW-INCOME PREGNANT FOR CHILDREN. subsection (b) and section 2105(a), the ex- penditures described in this paragraph are WOMAN.—The term ‘targeted low-income ‘‘(a) REQUIREMENTS FOR COVERAGE.—A the following: pregnant woman’ means a woman— group health plan, and a health insurance ‘‘(A) CERTAIN PREGNANT WOMEN.—If the ‘‘(A) during pregnancy and through the end issuer providing health insurance coverage conditions described in subparagraph (B) are of the month in which the 60-day period (be- in connection with a group health plan, shall met, expenditures for medical assistance for ginning on the last day of her pregnancy) offer an individual who is enrolled in such pregnant women described in subsection (n) ends; coverage the option to purchase dependent or under section 1902(l)(1)(A) in a family the ‘‘(B) whose family income exceeds the ef- coverage for a child of the individual. income of which exceeds 185 percent of the fective income level (expressed as a percent ‘‘(b) NO EMPLOYER CONTRIBUTION RE- poverty line, but does not exceed the income of the poverty line and considering applica- QUIRED.—An employer shall not be required eligibility level established under title XXI ble income disregards) that has been speci- to contribute to the cost of purchasing de- for a targeted low-income child. fied under subsection (a)(10)(A)(i)(III) or pendent coverage for a child by an individual ‘‘(B) CONDITIONS.—The conditions described (l)(2)(A) of section 1902, as of January 1, 2005, who is an employee of such employer. in this subparagraph are the following: to be eligible for medical assistance as a ‘‘(c) DEFINITION OF CHILD.—In this section, ‘‘(i) The State plans under this title and pregnant woman under title XIX but does the term ‘child’ means an individual who has title XXI do not provide coverage for preg- not exceed the income eligibility level estab- not attained 21 years of age.’’. nant women described in subparagraph (A) lished under the State child health plan (2) CLERICAL AMENDMENT.—The table of with higher family income without covering under this title for a targeted low-income contents in section 1 of the Employee Retire- such pregnant women with a lower family in- child; and ment Income Security Act of 1974 (29 U.S.C. come. ‘‘(C) who satisfies the requirements of 1001) is amended by inserting after the item ‘‘(ii) The State does not apply an effective paragraphs (1)(A), (1)(C), (2), and (3) of sec- relating to section 713 the following: income level for pregnant women that is tion 2110(b). ‘‘Sec. 714. Requirement to offer option to lower than the effective income level (ex- ‘‘(c) REFERENCES TO TERMS AND SPECIAL purchase dependent coverage pressed as a percent of the poverty line and RULES.—In the case of, and with respect to, for children.’’. considering applicable income disregards) a State providing for coverage of pregnancy- (b) PUBLIC HEALTH SERVICE ACT.—Subpart that has been specified under the State plan related assistance to targeted low-income 2 of part A of title XXVII of the Public under subsection (a)(10)(A)(i)(III) or (l)(2)(A) pregnant women under subsection (a), the Health Service Act (42 U.S.C. 300gg–4 et seq.) of section 1902, as of January 1, 2005, to be el- following special rules apply: is amended by adding at the end the fol- igible for medical assistance as a pregnant ‘‘(1) Any reference in this title (other than lowing: woman. in subsection (b)) to a targeted low-income

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child is deemed to include a reference to a ‘‘(A) in the case of such a State other than ‘‘(4) SPECIAL AUTHORITY FOR CERTAIN PREG- targeted low-income pregnant woman. a commonwealth or territory described in NANCY COVERAGE EXPANSION STATES.— ‘‘(2) Any such reference to child health as- subparagraph (B), the same proportion as the ‘‘(A) IN GENERAL.—In the case of a State sistance with respect to such women is proportion of the State’s allotment under that, as of the date of enactment of the Af- deemed a reference to pregnancy-related as- subsection (b) (determined without regard to fordable Health Care Act of 2005, has an in- sistance. subsection (f)) to the total amount of the al- come eligibility standard under title XIX or ‘‘(3) Any such reference to a child is lotments under subsection (b) for such this title (under section 1902(a)(10)(A) or deemed a reference to a woman during preg- States eligible for an allotment under this under a statewide waiver in effect under sec- nancy and the period described in subsection paragraph for such fiscal year; and tion 1115 with respect to title XIX or this (b)(2)(A). ‘‘(B) in the case of a commonwealth or ter- title) that is at least 185 percent of the pov- ‘‘(4) In applying section 2102(b)(3)(B), any ritory described in subsection (c)(3), the erty line with respect to pregnant women, reference to children found through screen- same proportion as the proportion of the the State may elect to use not more than 20 ing to be eligible for medical assistance commonwealth’s or territory’s allotment percent of any allotment under section 2104 under the State medicaid plan under title under subsection (c) (determined without re- for any fiscal year (insofar as it is available XIX is deemed a reference to pregnant gard to subsection (f)) to the total amount of under subsections (e) and (g) of such section) women. the allotments under subsection (c) for com- for payments under title XIX in accordance ‘‘(5) There shall be no exclusion of benefits monwealths and territories eligible for an al- with subparagraph (B), instead of for expend- for services described in subsection (b)(1) lotment under this paragraph for such fiscal itures under this title. based on any preexisting condition and no year. ‘‘(B) PAYMENTS TO STATES.— waiting period (including any waiting period ‘‘(3) USE OF ADDITIONAL ALLOTMENT.—Addi- ‘‘(i) IN GENERAL.—In the case of a State de- imposed to carry out section 2102(b)(3)(C)) tional allotments provided under this sub- scribed in subparagraph (A) that has elected shall apply. section are not available for amounts ex- the option described in that subparagraph, ‘‘(6) Subsection (a) of section 2103 (relating pended before October 1, 2005. Such amounts subject to the availability of funds under to required scope of health insurance cov- are available for amounts expended on or such subparagraph and, if applicable, para- erage) shall not apply insofar as a State lim- after such date for child health assistance graph (1)(A), with respect to the State, the its coverage to services described in sub- for targeted low-income children, as well as Secretary shall pay the State an amount section (b)(1) and the reference to such sec- for pregnancy-related assistance for targeted each quarter equal to the additional amount tion in section 2105(a)(1)(C) is deemed not to low-income pregnant women. that would have been paid to the State under require, in such case, compliance with the ‘‘(4) NO PAYMENTS UNLESS ELECTION TO EX- title XIX with respect to expenditures de- requirements of section 2103(a). PAND COVERAGE OF PREGNANT WOMEN.—No scribed in clause (ii) if the enhanced FMAP ‘‘(7) In applying section 2103(e)(3)(B) in the payments may be made to a State under this (as determined under subsection (b)) had case of a pregnant woman provided coverage title from an allotment provided under this been substituted for the Federal medical as- under this section, the limitation on total subsection unless the State provides preg- sistance percentage (as defined in section annual aggregate cost-sharing shall be ap- nancy-related assistance for targeted low-in- 1905(b)). come pregnant women under this title, or plied to such pregnant woman. ‘‘(ii) EXPENDITURES DESCRIBED.—For pur- provides medical assistance for pregnant ‘‘(8) The reference in section 2107(e)(1)(D) poses of this subparagraph, the expenditures women under title XIX, whose family income to section 1920A (relating to presumptive eli- described in this clause are expenditures, exceeds the effective income level applicable gibility for children) is deemed a reference to made after the date of the enactment of this under subsection (a)(10)(A)(i)(III) or (l)(2)(A) section 1920 (relating to presumptive eligi- paragraph and during the period in which of section 1902 to a family of the size in- bility for pregnant women). funds are available to the State for use under volved as of January 1, 2005.’’. ‘‘(d) AUTOMATIC ENROLLMENT FOR CHILDREN subparagraph (A), for medical assistance (B) CONFORMING AMENDMENTS.—Section BORN TO WOMEN RECEIVING PREGNANCY-RE- under title XIX for pregnant women whose 2104 of the Social Security Act (42 U.S.C. LATED ASSISTANCE.—If a child is born to a family income is at least 185 percent of the 1397dd), as amended by section 302(b), is targeted low-income pregnant woman who poverty line. amended— was receiving pregnancy-related assistance ‘‘(iii) NO IMPACT ON DETERMINATION OF (i) in subsection (a), in the matter pre- under this section on the date of the child’s BUDGET NEUTRALITY FOR WAIVERS.—In the ceding paragraph (1), by inserting ‘‘sub- birth, the child shall be deemed to have ap- case of a State described in subparagraph (A) section (d) and’’ before ‘‘section 2105(h)’’; plied for child health assistance under the that uses amounts paid under this paragraph (ii) in subsection (b)(1), by inserting ‘‘, sub- State child health plan and to have been for expenditures described in clause (ii) that section (d),’’ after ‘‘Subject to paragraph found eligible for such assistance under such are incurred under a waiver approved for the (4)’’; and plan or to have applied for medical assist- State, any budget neutrality determinations (iii) in subsection (c)(1), by inserting ‘‘sub- ance under title XIX and to have been found with respect to such waiver shall be deter- section (d) and’’ after ‘‘section 2105(h)’’. eligible for such assistance under such title, mined without regard to such amounts (3) ADDITIONAL CONFORMING AMENDMENTS.— as appropriate, on the date of such birth and paid.’’; and (A) NO COST-SHARING FOR PREGNANCY-RE- to remain eligible for such assistance until (3) in paragraph (3), by striking ‘‘and (2)’’ the child attains 1 year of age. During the LATED BENEFITS.—Section 2103(e)(2) of the and inserting ‘‘(2), and (4)’’. period in which a child is deemed under the Social Security Act (42 U.S.C. 1397cc(e)(2)) is (d) OTHER AMENDMENTS TO MEDICAID.— preceding sentence to be eligible for child amended— (1) ELIGIBILITY OF A NEWBORN.—Section health or medical assistance, the child (i) in the heading, by inserting ‘‘OR PREG- 1902(e)(4) of the Social Security Act (42 health or medical assistance eligibility iden- NANCY-RELATED SERVICES’’ after ‘‘PREVENTIVE U.S.C. 1396a(e)(4)) is amended in the first sen- tification number of the mother shall also SERVICES’’; and tence by striking ‘‘so long as the child is a serve as the identification number of the (ii) by inserting before the period at the member of the woman’s household and the child, and all claims shall be submitted and end the following: ‘‘or for pregnancy-related woman remains (or would remain if preg- paid under such number (unless the State services’’. nant) eligible for such assistance’’. issues a separate identification number for (B) NO WAITING PERIOD.—Section (2) APPLICATION OF QUALIFIED ENTITIES TO the child before such period expires).’’. 2102(b)(1)(B) (42 U.S.C. 1397bb(b)(1)(B)) is PRESUMPTIVE ELIGIBILITY FOR PREGNANT (2) ADDITIONAL ALLOTMENTS FOR PROVIDING amended— WOMEN UNDER MEDICAID.—Section 1920(b) of COVERAGE OF PREGNANT WOMEN.— (i) in clause (i), by striking ‘‘, and’’ at the the Social Security Act (42 U.S.C. 1396r–1(b)) (A) IN GENERAL.—Section 2104 of the Social end and inserting a semicolon; is amended by adding after paragraph (2) the Security Act (42 U.S.C. 1397dd) is amended by (ii) in clause (ii), by striking the period at following flush sentence: inserting after subsection (c) the following the end and inserting ‘‘; and’’; and ‘‘The term ‘qualified provider’ includes a new subsection: (iii) by adding at the end the following new qualified entity as defined in section ‘‘(d) ADDITIONAL ALLOTMENTS FOR PRO- clause: 1920A(b)(3).’’. VIDING COVERAGE OF PREGNANT WOMEN.— ‘‘(iii) may not apply a waiting period (in- (e) EFFECTIVE DATE.—The amendments ‘‘(1) APPROPRIATION; TOTAL ALLOTMENT.— cluding a waiting period to carry out para- made by this section apply to items and For the purpose of providing additional al- graph (3)(C)) in the case of a targeted low-in- services furnished on or after October 1, 2005, lotments to States under this title, there is come pregnant woman.’’. without regard to whether regulations im- appropriated, out of any money in the Treas- (c) AUTHORITY FOR STATES THAT PROVIDE plementing such amendments have been pro- ury not otherwise appropriated, for each of MEDICAID OR SCHIP COVERAGE FOR PREGNANT mulgated. fiscal years 2006 through 2009, $200,000,000. WOMEN WITH INCOME ABOVE 185 PERCENT OF SEC. 352. OPTIONAL COVERAGE OF LEGAL IMMI- ‘‘(2) STATE AND TERRITORIAL ALLOTMENTS.— THE POVERTY LINE TO USE PORTION OF SCHIP GRANTS UNDER THE MEDICAID PRO- In addition to the allotments provided under FUNDS FOR MEDICAID EXPENDITURES.—Sec- GRAM AND SCHIP. subsections (b) and (c), subject to paragraphs tion 2105(g) of the Social Security Act (42 (a) MEDICAID PROGRAM.—Section 1903(v) of (3) and (4), of the amount available for the U.S.C. 1397ee(g)) is amended— the Social Security Act (42 U.S.C. 1396b(v)) is additional allotments under paragraph (1) for (1) in the subsection heading, by inserting amended— a fiscal year, the Secretary shall allot to ‘‘AND CERTAIN PREGNANCY COVERAGE EXPAN- (1) in paragraph (1), by striking ‘‘paragraph each State with a State child health plan ap- SION STATES’’ after ‘‘QUALIFYING STATES’’; (2)’’ and inserting ‘‘paragraphs (2) and (4)’’; proved under this title— (2) by adding at the end the following: and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00094 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S201 (2) by adding at the end the following new ‘‘(i) is legally authorized to furnish such (2) by inserting after section 1936 the fol- paragraph: services under State law (or the State regu- lowing new section: ‘‘(4)(A) A State may elect (in a plan latory mechanism provided by State law) of ‘‘STATE OPTION TO PROVIDE FAMILY PLANNING amendment under this title) to provide med- the State in which the services are fur- SERVICES AND SUPPLIES ical assistance under this title for aliens who nished; and ‘‘SEC. 1937. (a) IN GENERAL.—Subject to are lawfully residing in the United States ‘‘(ii) is authorized to receive payment for subsections (b) and (c), a State may elect (including battered aliens described in sec- other services under this title or is des- (through a State plan amendment) to make tion 431(c) of the Personal Responsibility and ignated by the Secretary for this purpose. medical assistance described in section Work Opportunity Reconciliation Act of ‘‘(2) Subject to paragraph (3), such term is 1905(a)(4)(C) available to any individual 1996) and who are otherwise eligible for such limited to— whose family income does not exceed the assistance, within any of the following eligi- ‘‘(A) therapy and counseling services rec- greater of— bility categories: ommended in ‘Treating Tobacco Use and De- ‘‘(1) 185 percent of the income official pov- ‘‘(i) PREGNANT WOMEN.—Women during pendence: A Clinical Practice Guideline’, erty line (as defined by the Office of Manage- pregnancy (and during the 60-day period be- published by the Public Health Service in ment and Budget, and revised annually in ac- ginning on the last day of the pregnancy). June 2000, or any subsequent modification of cordance with section 673(2) of the Omnibus ‘‘(ii) CHILDREN.—Children (as defined under such Guideline; and Budget Reconciliation Act of 1981) applicable such plan), including optional targeted low- ‘‘(B) such other therapy and counseling to a family of the size involved; or income children described in section services that the Secretary recognizes to be ‘‘(2) the eligibility income level (expressed 1905(u)(2)(B). effective. ‘‘(B)(i) In the case of a State that has ‘‘(3) Such term shall not include coverage as a percentage of such poverty line) that elected to provide medical assistance to a for drugs or biologicals that are not other- has been specified under a waiver authorized category of aliens under subparagraph (A), wise covered under this title.’’. by the Secretary or under section 1902(r)(2)), no debt shall accrue under an affidavit of (c) REMOVAL OF COST-SHARING FOR TOBACCO as of January 1, 2005, for an individual to be support against any sponsor of such an alien CESSATION COUNSELING SERVICES FOR PREG- eligible for medical assistance under the on the basis of provision of assistance to NANT WOMEN.—Section 1916 of the Social Se- State plan. such category and the cost of such assistance curity Act (42 U.S.C. 1396o) is amended in ‘‘(b) COMPARABILITY.—Medical assistance shall not be considered as an unreimbursed each of subsections (a)(2)(B) and (b)(2)(B) by described in section 1905(a)(4)(C) that is made cost. inserting ‘‘, and counseling for cessation of available under a State plan amendment ‘‘(ii) The provisions of sections 401(a), tobacco use (as defined in section 1905(x))’’ under subsection (a) shall— 402(b), 403, and 421 of the Personal Responsi- after ‘‘complicate the pregnancy’’. ‘‘(1) not be less in amount, duration, or bility and Work Opportunity Reconciliation (d) EFFECTIVE DATE.—The amendments scope than the medical assistance described Act of 1996 shall not apply to a State that made by this section shall apply to services in that section that is made available to any makes an election under subparagraph (A).’’. furnished on or after the date that is 1 year other individual under the State plan; and (b) TITLE XXI.—Section 2107(e)(1) of the So- after the date of enactment of this Act. ‘‘(2) be provided in accordance with the re- cial Security Act (42 U.S.C. 1397gg(e)(1)) is SEC. 354. PROMOTING CESSATION OF TOBACCO strictions on deductions, cost sharing, or amended by adding at the end the following USE UNDER THE MATERNAL AND similar charges imposed under section new subparagraph: CHILD HEALTH SERVICES BLOCK 1916(a)(2)(D). ‘‘(E) Section 1903(v)(4) (relating to optional GRANT PROGRAM. ‘‘(c) OPTION TO EXTEND COVERAGE DURING A coverage of permanent resident alien preg- (a) QUALITY MATERNAL AND CHILD HEALTH POST-ELIGIBILITY PERIOD.— nant women and children), but only with re- SERVICES INCLUDES TOBACCO CESSATION ‘‘(1) INITIAL PERIOD.—A State plan amend- spect to an eligibility category under this COUNSELING AND MEDICATIONS.— ment made under subsection (a) may provide title, if the same eligibility category has (1) IN GENERAL.—Section 501 of the Social that any individual who was receiving med- been elected under such section for purposes Security Act (42 U.S.C. 701) is amended by ical assistance described in section of title XIX.’’. adding at the end the following new sub- 1905(a)(4)(C) as a result of such amendment, (c) EFFECTIVE DATE.—The amendments section: and who becomes ineligible for such assist- made by this section take effect on October ‘‘(c) For purposes of this title, counseling ance because of hours of, or income from, 1, 2005, and apply to medical assistance and for cessation of tobacco use (as defined in employment, may remain eligible for such child health assistance furnished on or after section 1905(y)), drugs and biologicals used to medical assistance through the end of the 6- such date. promote smoking cessation, and the inclu- month period that begins on the first day the SEC. 353. PROMOTING CESSATION OF TOBACCO sion of antitobacco messages in health pro- individual becomes so ineligible. USE UNDER THE MEDICAID PRO- motion counseling shall be considered to be ‘‘(2) ADDITIONAL EXTENSION.—A State plan GRAM. part of quality maternal and child health amendment made under subsection (a) may (a) DROPPING EXCEPTION FROM MEDICAID services.’’. provide that any individual who has received PRESCRIPTION DRUG COVERAGE FOR TOBACCO (2) EFFECTIVE DATE.—The amendment medical assistance described in section CESSATION MEDICATIONS.—Section 1927(d)(2) made by paragraph (1) shall take effect on 1905(a)(4)(C) during the entire 6-month period of the Social Security Act (42 U.S.C. 1396r– the date that is 1 year after the date of en- described in paragraph (1) may be extended 8(d)(2)) is amended— actment of this Act. coverage for such assistance for a succeeding (1) by striking subparagraph (E); (b) EVALUATION OF NATIONAL CORE PER- 6-month period.’’. (2) by redesignating subparagraphs (F) FORMANCE MEASURES.— (b) EFFECTIVE DATE.—The amendments through (J) as subparagraphs (E) through (I), (1) IN GENERAL.—The Administrator of the respectively; and Health Resources and Services Administra- made by subsection (a) apply to medical as- (3) in subparagraph (F) (as redesignated by tion shall assess the current national core sistance provided on and after October 1, paragraph (2)), by inserting before the period performance measures and national core out- 2005. at the end the following: ‘‘, except agents ap- come measures utilized under the Maternal SEC. 356. STATE OPTION TO EXTEND THE proved by the Food and Drug Administration and Child Health Block Grant under title V POSTPARTUM PERIOD FOR PROVI- for purposes of promoting, and when used to SION OF FAMILY PLANNING SERV- of the Social Security Act (42 U.S.C. 701 et ICES AND SUPPLIES. promote, tobacco cessation’’. seq.) for purposes of expanding such meas- (b) REQUIRING COVERAGE OF TOBACCO CES- (a) IN GENERAL.—Section 1902(e)(5) of the ures to include some of the known causes of Social Security Act (42 U.S.C. 1396a(e)(5)) is SATION COUNSELING SERVICES FOR PREGNANT low birthweight and prematurity, including WOMEN.—Section 1905 of the Social Security amended— the percentage of infants born to pregnant (1) by striking ‘‘eligible under the plan, as Act (42 U.S.C. 1396d(a)(4)) is amended— women who smoked during pregnancy. (1) in subsection (a)(4)— though’’ and inserting ‘‘eligible under the EPORT.—Not later than 1 year after (2) R plan— (A) by striking ‘‘and’’ before ‘‘(C)’’; and the date of enactment of this Act, the Ad- ‘‘(A) as though’’; (B) by inserting before the semicolon at ministrator of the Health Resources and (2) by striking the period and inserting ‘‘; the end the following new subparagraph: ‘‘; Services Administration shall submit to the and’’; and and (D) counseling for cessation of tobacco appropriate committees of Congress a report (3) by adding at the end the following new use (as defined in subsection (x)) for preg- concerning the results of the evaluation con- subparagraph: nant women’’; and ducted under paragraph (1). (2) by adding at the end the following: ‘‘(B) for medical assistance described in ‘‘(y)(1) For purposes of this title, the term SEC. 355. STATE OPTION TO PROVIDE FAMILY section 1905(a)(4)(C) for so long as the family PLANNING SERVICES AND SUPPLIES ‘counseling for cessation of tobacco use’ TO INDIVIDUALS WITH INCOMES income of such woman does not exceed the means therapy and counseling for cessation THAT DO NOT EXCEED A STATE’S IN- maximum income level established by the of tobacco use for pregnant women who use COME ELIGIBILITY LEVEL FOR MED- State for the woman to be eligible for med- tobacco products or who are being treated ICAL ASSISTANCE. ical assistance under the State plan (as a re- for tobacco use that is furnished— (a) IN GENERAL.—Title XIX of the Social sult of pregnancy or otherwise).’’. ‘‘(A) by or under the supervision of a physi- Security Act (42 U.S.C. 1396 et seq.), as (b) EFFECTIVE DATE.—The amendments cian; or amended by section 301(a), is amended— made by subsection (a) apply to medical as- ‘‘(B) by any other health care professional (1) by redesignating section 1937 as section sistance provided on and after October 1, who— 1938; and 2005.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00095 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S202 CONGRESSIONAL RECORD — SENATE January 24, 2005 SEC. 357. STATE OPTION TO PROVIDE WRAP- (i) by redesignating paragraph (5) as para- (1) The Medicaid program under title XIX AROUND SCHIP COVERAGE TO CHIL- graph (6); and of the Social Security Act (42 U.S.C. 1396 et DREN WHO HAVE OTHER HEALTH (ii) by inserting after paragraph (4) the fol- seq.) provides essential health care and long- COVERAGE. lowing: term care coverage to more than 50,000,000 (a) IN GENERAL.— ‘‘(5) For purposes of subsection (b), the ex- low-income children, pregnant women and (1) SCHIP.— penditures described in this paragraph are families, individuals with disabilities, and (A) STATE OPTION TO PROVIDE WRAP-AROUND expenditures for items and services for chil- senior citizens. It is a Federal guarantee COVERAGE.—Section 2110(b) of the Social Se- that even the most vulnerable will have ac- curity Act (42 U.S.C. 1397jj(b)) is amended— dren described in section 2110(b)(5), but only cess to needed medical services. (i) in paragraph (1)(C), by inserting ‘‘, sub- in the case of a State that satisfies the re- (2) Medicaid provides health insurance for ject to paragraph (5),’’ after ‘‘under title XIX quirements of section 2105(c)(8).’’. more than 1⁄4 of America’s children and is the or’’; and (3) APPLICATION OF SECONDARY PAYOR PRO- largest purchaser of maternity care, paying (ii) by adding at the end the following: VISIONS.—Section 2107(e)(1) of the Social Se- curity Act (42 U.S.C. 1397gg(e)(1)), as amend- for more than 1⁄3 of all the births in the ‘‘(5) STATE OPTION TO PROVIDE WRAP-AROUND United States each year. COVERAGE.—A State may waive the require- ed by section 3(b), is amended by adding at (3) Medicaid provides critical help for the ment of paragraph (1)(C) that a targeted low- the end the following: elderly and individuals living with disabil- income child may not be covered under a ‘‘(F) Section 1902(a)(25) (relating to coordi- ities. Medicaid is America’s single largest group health plan or under health insurance nation of benefits and secondary payor provi- purchaser of nursing home services and other coverage, if the State satisfies the condi- sions) with respect to children covered under long-term care, covering the majority of tions described in subsection (c)(8). The a waiver described in section 2110(b)(5).’’. nursing home residents. State may waive such requirement in order (b) EFFECTIVE DATE.—The amendments (4) Medicaid pays for personal care and to provide— made by subsection (a) shall take effect on other supportive services, which are typi- ‘‘(A) services for a child with special health January 1, 2005, and shall apply to child cally not provided by private health insur- care needs; or health assistance and medical assistance provided on or after that date. ance, even if individuals could obtain it. ‘‘(B) all services. SEC. 358. INNOVATIVE OUTREACH PROGRAMS. These services are necessary to enable indi- In waiving such requirement, a State may Title XXI of the Social Security Act (42 viduals with spinal cord injuries, develop- limit the application of the waiver to chil- U.S.C. 1397aa et seq.), as amended by section mental disabilities, neurological degenera- dren whose family income does not exceed a 351(b), is amended by adding at the end the tive diseases, serious and persistent mental level specified by the State, so long as the following: illnesses, HIV/AIDS, and other chronic condi- level so specified does not exceed the max- ‘‘SEC. 2112. EXPANDED OUTREACH ACTIVITIES. tions to remain in the community, to work, imum income level otherwise established for ‘‘(a) IN GENERAL.—Funds made available and to maintain independence. other children under the State child health under subsection (f) for expenditure under (5) Medicaid is an essential supplement to plan.’’. this section for a fiscal year shall be used by the Medicare program under title XVIII of (B) CONDITIONS DESCRIBED.—Section 2105(c) the Secretary to award grants to eligible en- the Social Security Act (42 U.S.C. 1395 et of the Social Security Act (42 U.S.C. tities to conduct innovative outreach and en- seq.) for more than 6,000,000 Medicare bene- 1397ee(c)) is amended by adding at the end rollment efforts that are designed to in- ficiaries who are low-income elderly or dis- the following: crease the enrollment and participation of abled, assisting them with their Medicare ‘‘(8) CONDITIONS FOR PROVISION OF WRAP- eligible children under this title and title premiums and co-insurance, wrap-around AROUND COVERAGE.—For purposes of section XIX. benefits, and, in most States, the costs of 2110(b)(5), the conditions described in this ‘‘(b) PRIORITY FOR GRANTS IN CERTAIN nursing home care that Medicare does not paragraph are the following: AREAS.—In making grants under subsection cover. ‘‘(A) INCOME ELIGIBILITY.—The State child (a), the Secretary shall give priority to eligi- (6) About 42 percent of all Medicaid spend- health plan (whether implemented under ble entities that propose to target geo- ing is for those who are elderly or are living title XIX or this XXI)— graphic areas with high rates of— with disabilities and are dually eligible for ‘‘(i) has the highest income eligibility ‘‘(1) eligible but unenrolled children, in- Medicare and Medicaid. standard permitted under this title as of cluding such children who reside in rural (7) Medicaid faces an ever growing burden January 1, 2005; areas; as a result of Medicare’s gaps. The Medicaid ‘‘(ii) subject to subparagraph (B), does not ‘‘(2) families for whom English is not their program spent nearly $40,000,000,000 on un- limit the acceptance of applications for chil- primary language; or covered Medicare services in 2002. Medicaid dren; and ‘‘(3) racial and ethnic minorities and payments for low-income Medicare bene- ‘‘(iii) provides benefits to all children in health disparity populations ficiary cost-sharing are the largest and fast- the State who apply for and meet eligibility ‘‘(c) APPLICATION.—An eligible entity that est growing share of Medicaid spending. standards. desires to receive a grant under this section (8) The Medicare drug benefit imposes ad- ‘‘(B) NO WAITING LIST IMPOSED.—With re- shall submit an application to the Secretary ditional costs on States, which will add to spect to children whose family income is at in such form and manner, and containing the already significant long-term care cost or below 200 percent of the poverty line, the such information, as the Secretary may de- burden. Medicaid spending on Medicare bene- State does not impose any numerical limita- cide. Such application shall include— ficiaries’ long-term care costs is expected to tion, waiting list, or similar limitation on ‘‘(1) quality and outcomes performance double from $25,000,000,000 in 2002 to the eligibility of such children for child measures to evaluate the effectiveness of ac- $51,000,000,000 in 2012. health assistance under such State plan. tivities funded by a grant under this para- (9) Medicaid helps ensure access to care for ‘‘(C) NO MORE FAVORABLE TREATMENT.—The graph to ensure that the activities are meet- all Americans. Medicaid is the single largest State child health plan may not provide ing their goals; and source of revenue for the Nation’s safety net more favorable coverage of dental services to ‘‘(2) an assurance that the entity will— hospitals and health centers and is critical the children covered under section 2110(b)(5) ‘‘(A) collect and report enrollment data; to the ability of those providers to serve than to children otherwise covered under and Medicaid enrollees and uninsured Americans. this title.’’. ‘‘(B) disseminate findings from evaluations (10) Medicaid serves a major role in ensur- (C) STATE OPTION TO WAIVE WAITING PE- of the activities funded under the grant. ing that the number of Americans without RIOD.—Section 2102(b)(1)(B) of the Social Se- ‘‘(d) REPORT.—The Secretary shall report health insurance, approximately 45,000,000 in curity Act (42 U.S.C. 1397bb(b)(1)(B)), as to Congress on an annual basis the results of 2003, is not substantially higher. Medicaid amended by section 2(b)(3)(B), is amended— the outreach efforts under grants awarded helps buffer the drop in private coverage dur- (i) in clause (ii), by striking ‘‘, and’’ at the under this section. ing recessions. More than 4,800,000 Americans end and inserting a semicolon; ‘‘(e) DEFINITION OF ELIGIBLE ENTITY.—In lost employer sponsored coverage between (ii) in clause (iii), by striking the period at this section, the term ‘eligible entity’ means 2000 and 2003. Medicaid covered an additional the end and inserting ‘‘; and’’; and any of the following: 5,800,000 Americans during this period, pre- (iii) by adding at the end the following new ‘‘(1) A State. venting even greater numbers of uninsured. clause: ‘‘(2) A national, local, or community-based (11) Medicaid matters to women in Amer- ‘‘(iv) at State option, may not apply a public or nonprofit private organization. ica. More than 16,000,000 women depend on waiting period in the case of a child de- ‘‘(f) APPROPRIATION.—For the purpose of Medicaid for their health care. Women com- scribed in section 2110(b)(5), if the State sat- awarding grants to eligible entities under prise the majority of seniors (71 percent) on isfies the requirements of section 2105(c)(8).’’. this section, there is appropriated, out of Medicaid. Half of nonelderly women with (2) APPLICATION OF ENHANCED MATCH UNDER any money in the Treasury not otherwise ap- permanent mental or physical disabilities MEDICAID.—Section 1905 of the Social Secu- propriated, $50,000,000 for each of fiscal years have health coverage through Medicaid. rity Act (42 U.S.C. 1396d), as amended by sec- 2006 and 2007.’’. Medicaid provides treatment for low-income tion 2(a)(2), is amended— Subtitle C—Affirming the Importance of women diagnosed with breast or cervical (A) in subsection (b), in the fourth sen- Medicaid cancer in every State. tence, by striking ‘‘or (u)(4)’’ and inserting SEC. 361. SENSE OF THE SENATE. (12) Medicaid is critical for children with ‘‘(u)(4), or (u)(5)’’; and (a) FINDINGS.—The Senate makes the fol- disabilities. Medicaid covers 78 percent of (B) in subsection (u)— lowing findings: poor children with disabilities who are under

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5 years of age and 70 percent of poor children ‘‘(B) for any qualified small employer de- ‘‘(B) TREATMENT OF CERTAIN EMPLOYEES.— with disabilities who are between the ages of scribed in subparagraph (B) of paragraph (4), For purposes of subparagraph (A), the term 5 and 17. Similarly, Medicaid covers a sub- 35 percent, and ‘employee’— stantial portion of children with disabilities ‘‘(C) for any qualified small employer de- ‘‘(i) shall not include an employee within who are near poor, covering 40 percent of scribed in subparagraph (C) of paragraph (4), the meaning of section 401(c)(1), and children with disabilities who are under 5 25 percent. ‘‘(ii) shall include a leased employee within years of age and 25 percent of children with ‘‘(3) PER EMPLOYEE DOLLAR LIMITATION.— the meaning of section 414(n). disabilities who are between the ages of 5 The amount of qualified employee health in- ‘‘(C) WAGES.—The term ‘wages’ has the and 17. surance expenses taken into account under meaning given such term by section 3121(a) (13) Medicaid is the Nation’s largest source paragraph (1) with respect to any qualified (determined without regard to any dollar of payment for mental health services, HIV/ employee for any taxable year shall not ex- limitation contained in such section). AIDS care, and care for children with special ceed— ‘‘(d) CERTAIN RULES MADE APPLICABLE.— needs. Much of this care is either not covered ‘‘(A) $1,500 in the case of self-only cov- For purposes of this section, rules similar to by private insurance or limited in scope or erage; and the rules of section 52 shall apply. duration. Medicaid is also a critical source of ‘‘(B) $3,500 in the case of family coverage. ‘‘(e) COORDINATION WITH DEDUCTION FOR funding for health care for children in foster ‘‘(4) QUALIFIED SMALL EMPLOYERS DE- HEALTH INSURANCE COSTS OF SELF-EMPLOYED care and for health services in schools. SCRIBED.—A qualified small employer is de- INDIVIDUALS.—In the case of a taxpayer who (14) The need for Medicaid is greater than scribed in— is eligible to deduct any amount under sec- ever today, because the number of Ameri- ‘‘(A) this subparagraph if such employer tion 162(l) for the taxable year, this section cans living in poverty has increased by employed an average of 9 or fewer employees shall apply only if the taxpayer elects not to 8,000,000 over the last 4 years and the number (as determined under subsection (c)(1)(A)(ii)), claim any amount as a deduction under such of the uninsured has increased by 5,000,000. ‘‘(B) this subparagraph if such employer section for such year.’’. (15) The system of Federal matching for employed an average of more than 9 but less (b) CONFORMING AMENDMENTS.— State Medicaid expenditures ensures that than 25 employees (as so determined), and (1) Paragraph (2) of section 1324(b) of title Federal funds will grow as State spending in- ‘‘(C) this subparagraph if such employer 31, United States Code, is amended by insert- creases in response to unmet needs. employed an average of more than 24 but not ing before the period ‘‘, or from section 36 of (16) Despite the varied population served more than 50 employees (as so determined). such Code’’. by the Medicaid program, including those (2) The table of sections for subpart C of with significant health care needs, Medicaid ‘‘(c) DEFINITIONS.—For purposes of this sec- part IV of subchapter A of chapter 1 of the per capita growth has been consistently tion— Internal Revenue Code of 1986 is amended by about half the rate of growth in private in- ‘‘(1) QUALIFIED SMALL EMPLOYER.— striking the last item and inserting the fol- surance premiums and Medicaid has far ‘‘(A) IN GENERAL.—The term ‘qualified lowing new items: lower administrative costs. Medicaid costs small employer’ means, with respect to any ‘‘Sec. 36. Small business employee health in- less per person than private coverage for peo- calendar year, any employer if— surance expenses. ple who have similar health status. ‘‘(i) such employer pays or incurs at least ‘‘Sec. 37. Overpayments of tax.’’. (b) SENSE OF THE SENATE.—It is the sense 75 percent of the qualified employee health of the Senate that— insurance expenses of each qualified em- (e) EFFECTIVE DATE.—The amendments (1) the Medicaid program under title XIX ployee (determined without regard to sub- made by this section shall apply to amounts of the Social Security Act (42 U.S.C. 1396 et section (b)(3)), and paid or incurred in taxable years beginning seq.) is a critical component of the health ‘‘(ii) such employer employed an average of after December 31, 2005. care system of the United States; 50 or fewer employees on business days dur- Subtitle B—Three-Share Program (2) Federal support for the Medicaid pro- ing either of the 2 preceding calendar years. SEC. 421. THREE-SHARE PROGRAMS. gram must be adequate to support State For purposes of clause (ii), a preceding cal- The Social Security Act (42 U.S.C. 301 et spending meeting the essential health needs endar year may be taken into account only of the low-income elderly, low-income indi- seq.) is amended by adding at the end the fol- if the employer was in existence throughout lowing: viduals with disabilities, and low-income such year. children and families, and should not be cut ‘‘(B) EMPLOYERS NOT IN EXISTENCE IN PRE- ‘‘TITLE XXII—PROVIDING FOR THE or capped; and CEDING YEAR.—In the case of an employer UNINSURED (3) any retreat from the Federal commit- which was not in existence throughout the ‘‘SEC. 2201. THREE-SHARE PROGRAMS. ment to Medicaid would threaten not only 1st preceding calendar year, the determina- ‘‘(a) PILOT PROGRAMS.—The Secretary, act- the health care safety net of the United tion under subparagraph (A)(ii) shall be ing through the Administrator, shall award States but the entire health care system based on the average number of employees grants under this section for the startup and TITLE IV—REDUCING HEALTH CARE that it is reasonably expected such employer operation of 25 eligible three-share pilot pro- COSTS FOR SMALL EMPLOYERS will employ on business days in the current grams for a 5-year period. calendar year. ‘‘(b) GRANTS FOR THREE-SHARE PRO- Subtitle A—Tax Relief ‘‘(2) QUALIFIED EMPLOYEE HEALTH INSUR- GRAMS.— SEC. 401. REFUNDABLE CREDIT FOR SMALL BUSI- ANCE EXPENSES.— ‘‘(1) ESTABLISHMENT.—The Administrator NESS EMPLOYEE HEALTH INSUR- ‘‘(A) IN GENERAL.—The term ‘qualified em- may award grants to eligible entities— ANCE EXPENSES. ployee health insurance expenses’ means any ‘‘(A) to establish three-share programs; (a) IN GENERAL.—Subpart C of part IV of amount paid by an employer for health in- ‘‘(B) to provide for contributions to the subchapter A of chapter 1 of the Internal surance coverage (as defined in section premiums assessed for coverage under a Revenue Code of 1986 (relating to refundable 9832(b)(1)) to the extent such amount is at- three-share program as provided for in sub- credits) is amended by redesignating section tributable to coverage provided to any em- section (c)(2)(B)(iii); and 36 as section 37 and inserting after section 35 ployee while such employee is a qualified ‘‘(C) to establish risk pools. the following new section: employee. ‘‘(2) THREE-SHARE PROGRAM PLAN.—Each ‘‘SEC. 36. SMALL BUSINESS EMPLOYEE HEALTH ‘‘(B) EXCEPTION FOR AMOUNTS PAID UNDER entity desiring a grant under this subsection INSURANCE EXPENSES. SALARY REDUCTION ARRANGEMENTS.—No shall develop a plan for the establishment ‘‘(a) DETERMINATION OF AMOUNT.—In the amount paid or incurred for health insurance and operation of a three-share program that case of a qualified small employer, there coverage pursuant to a salary reduction ar- meets the requirements of paragraphs (2) and shall be allowed as a credit against the tax rangement shall be taken into account under (3) of subsection (c). imposed by this subtitle for the taxable year subparagraph (A). ‘‘(3) APPLICATION.—Each entity desiring a an amount equal to the expense amount de- ‘‘(3) QUALIFIED EMPLOYEE.— grant under this subsection shall submit an scribed in subsection (b) paid by the tax- ‘‘(A) IN GENERAL.—The term ‘qualified em- application to the Administrator at such payer during the taxable year. ployee’ means, with respect to any period, an time, in such manner and containing such ‘‘(b) EXPENSE AMOUNT.—For purposes of employee of an employer if— information as the Administrator may re- this section— ‘‘(i) the annual amount of hours in the em- quire, including— ‘‘(1) IN GENERAL.—The expense amount de- ploy of such employer by such employee is at ‘‘(A) the three-share program plan de- scribed in this subsection is the applicable least 400 hours, scribed in paragraph (2); and percentage of the amount of qualified em- ‘‘(ii) the total amount of wages paid or in- ‘‘(B) an assurance that the eligible entity ployee health insurance expenses of each curred by such employer to such employee at will— qualified employee. an annual rate during the taxable year is at ‘‘(i) determine a benefit package; ‘‘(2) APPLICABLE PERCENTAGE.—For pur- least $5,000, and ‘‘(ii) recruit businesses and employees for poses of paragraph (1), the applicable per- ‘‘(iii) such employee is not eligible for— the three-share program; centage is equal to— ‘‘(I) any benefits under title XVIII, XIX, or ‘‘(iii) build and manage a network of ‘‘(A) for any qualified small employer de- XXI of the Social Security Act, or health providers or contract with an existing scribed in subparagraph (A) of paragraph (4), ‘‘(II) any other publicly-sponsored health network or licensed insurance provider; 50 percent, insurance program. ‘‘(iv) manage all administrative needs; and

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‘‘(v) establish relationships among commu- ‘‘(1) IN GENERAL.—The Administrator may insurance but is classified as a distressed nity, business, and provider interests. award grants to three-share programs that business. ‘‘(4) PRIORITY.—In awarding grants under are operating on the date of enactment of ‘‘(h) EVALUATION.—Not later than 90 days this section the Secretary shall give priority this section. after the end of the 5-year period during to an applicant— ‘‘(2) APPLICATION.—Each eligible entity de- which grants are available under this sec- ‘‘(A) that is an existing three-share pro- siring a grant under this subsection shall tion, the Government Accountability Office gram; submit an application to the Administrator shall submit to the Secretary and the appro- ‘‘(B) that is an eligible three-share pro- at such time, in such manner, and con- priate committees of Congress a report con- gram that has demonstrated community sup- taining such information as the Adminis- cerning— port; or trator may require. ‘‘(1) the effectiveness of the programs es- ‘‘(C) that is located in a State with insur- ‘‘(e) APPLICATION OF STATE LAWS.—Nothing tablished under this section; ance laws and regulations that permit three- in this section shall be construed to preempt ‘‘(2) the number of individuals covered share program expansion. State law. under such programs; ‘‘(c) GRANT ELIGIBILITY.— ‘‘(f) DISTRESSED BUSINESS FORMULA.— ‘‘(3) any resulting best practices; and ‘‘(1) IN GENERAL.—The Secretary, acting ‘‘(1) IN GENERAL.—Not later than 60 days ‘‘(4) the level of community involvement. through the Administrator, shall promulgate after the date of enactment of this section, ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— regulations providing for the eligibility of the Administrator of the Health Resources There are authorized to be appropriated to three-share programs for participation in the and Services Administration shall develop a carry out this section, such sums as may be pilot program under this section. formula to determine which businesses qual- necessary for each of fiscal years 2006 ‘‘(2) THREE-SHARE PROGRAM REQUIRE- ify as distressed businesses for purposes of through 2011.’’. MENTS.— this section. ‘‘(A) IN GENERAL.—To be determined to be ‘‘(2) EFFECT ON INSURANCE MARKET.—Grant- By Mr. DODD (for himself, Mr. an eligible three-share program for purposes ing eligibility to a distressed business using REID, Ms. MIKULSKI, Ms. of participation in the pilot program under the formula under paragraph (1) shall not STABENOW, Mr. ROCKEFELLER, this section a three-share program shall— interfere with the insurance market. Any and Mr. SCHUMER): ‘‘(i) be either a non-profit or local govern- business found to have reduced benefits to S. 17. A bill to amend the Help Amer- mental entity; qualify as a distressed business under the ica Vote Act of 2002 to protect voting ‘‘(ii) define the region in which such pro- formula under paragraph (1) shall not be eli- rights and to improve the administra- gram will provide services; gible to be a three-share program for pur- ‘‘(iii) have the capacity to carry out ad- poses of this section. tion of Federal elections, and for other ministrative functions of managing health ‘‘(g) DEFINITIONS.—In this section: purposes; to the Committee on Rules plans, including monthly billings, ‘‘(1) ADMINISTRATOR.—The term ‘Adminis- and Administration. verification/enrollment of eligible employers trator’ means the Administrator of the Mr. DODD. Mr. President, I ask unan- and employees, maintenance of membership Health Resources and Services Administra- imous consent that the text of the bill rosters, development of member materials tion. be printed in the RECORD. (such as handbooks and identification cards), ‘‘(2) COVERED INDIVIDUAL.—The term ‘cov- There being no objection, the bill was customer service, and claims processing; and ered individual’ means— ordered to be printed in the RECORD, as ‘‘(iv) have demonstrated community in- ‘‘(A) a qualified employee; or follows: volvement. ‘‘(B) a child under the age of 23 or a spouse ‘‘(B) PAYMENT.—To be eligible under para- of such qualified employee who— S. 17 graph (1), a three-share program shall pay ‘‘(i) lacks access to health care coverage Be it enacted by the Senate and House of Rep- the costs of services provided under subpara- through their employment or employer; resentatives of the United States of America in graph (A)(ii) by charging a monthly pre- ‘‘(ii) lacks access to health coverage Congress assembled, mium for each covered individual to be di- through a family member; SECTION 1. SHORT TITLE; TABLE OF CONTENTS. vided as follows: ‘‘(iii) is not eligible for coverage under the (a) SHORT TITLE.—This Act may be cited as ‘‘(i) Not more than 30 percent of such pre- medicare program under title XVIII or the the ‘‘Voting Opportunity and Technology mium shall be paid by a qualified employee medicaid program under title XIX; and Enhancement Rights Act of 2005’’. desiring coverage under the three-share pro- ‘‘(iv) does not qualify for benefits under (b) TABLE OF CONTENTS.—The table of con- gram. the State Children’s Health Insurance Pro- tents of this Act is as follows: ‘‘(ii) Not more than 30 percent of such pre- gram under title XXI. Sec. 1. Short title; table of contents. mium shall be paid by the qualified employer ‘‘(3) DISTRESSED BUSINESS.—The term ‘dis- Sec. 2. Findings and purposes. of such a qualified employee. tressed business’ means a business that— Sec. 3. National Federal write-in absentee ‘‘(iii) At least 40 percent of such premium ‘‘(A) in light of economic hardship and ris- ballot. shall be paid from amounts provided under a ing health care premiums may be forced to Sec. 4. Voter verified ballots. grant under this section. discontinue or scale back its health care cov- Sec. 5. Requirements for counting provi- ‘‘(iv) Any remaining amount shall be paid erage; and sional ballots. by the three-share program from other pub- ‘‘(B) qualifies as a distressed business ac- Sec. 6. Minimum required voting systems lic, private, or charitable sources. cording to the formula under subsection (g). and poll workers in polling ‘‘(C) PROGRAM FLEXIBILITY.—A three-share ‘‘(4) ELIGIBLE ENTITY.—The term ‘eligible places. program may set an income eligibility guide- entity’ means an entity that meets the re- Sec. 7. Election day registration. line for enrollment purposes. quirements of subsection (a)(2)(A). Sec. 8. Integrity of voter registration list. ‘‘(3) COVERAGE.— ‘‘(5) QUALIFIED EMPLOYEE.—The term Sec. 9. Early voting. ‘‘(A) IN GENERAL.—To be an eligible three- ‘qualified employee’ means any individual Sec. 10. Acceleration of study on election share program under this section, the three- employed by a qualified employer who meets day as a public holiday. share program shall provide at least the fol- certain criteria including— Sec. 11. Improvements to voting systems. lowing benefits: ‘‘(A) lacking access to health coverage Sec. 12. Voter registration. ‘‘(i) Physicians services. through a family member or common law Sec. 13. Establishing voter identification. ‘‘(ii) In-patient hospital services. partner; Sec. 14. Impartial administration of elec- ‘‘(iii) Out-patient services. ‘‘(B) not being eligible for coverage under tions. ‘‘(iv) Emergency room visits. the medicare program under title XVIII or Sec. 15. Strengthening the election assist- ‘‘(v) Emergency ambulance services. the medicaid program under title XIX; and ance commission. ‘‘(vi) Diagnostic lab fees and x-rays. ‘‘(C) agreeing that the share of fees de- Sec. 16. Authorization of appropriations. ‘‘(vii) Prescription drug benefits. scribed in subsection (a)(2)(B)(i) shall be paid Sec. 17. Effective date. ‘‘(B) LIMITATION.—Nothing in subparagraph in the form of payroll deductions from the SEC. 2. FINDINGS AND PURPOSES. (A) shall be construed to require that a wages of such individual. (a) FINDINGS.—Congress makes the fol- three-share program provide coverage for ‘‘(6) QUALIFIED EMPLOYER.—The term lowing findings: services performed outside the region de- ‘qualified employer’ means an employer as (1) The right of all eligible citizens to vote scribed in paragraph (2)(A)(i). defined in section 3(d) of the Fair Labor and have their vote counted is the corner- ‘‘(C) PREEXISTING CONDITIONS.—A program Standards Act of 1938 (29 U.S.C. 203(d)) who— stone of a democratic form of government described in subparagraph (A) shall not be an ‘‘(A) is a small business concern as defined and the core precondition of government of eligible three-share program under para- in section 3(a) of the Small Business Act (15 the people, by the people, and for the people. graph (1) if any individual can be excluded U.S.C. 632); (2) The right of citizens of the United from coverage under such program because ‘‘(B) is located in the region described in States to vote is a fundamental civil right of a preexisting health condition. subsection (a)(2)(A)(i); and guaranteed under the United States Con- ‘‘(d) GRANTS FOR EXISTING THREE-SHARE ‘‘(C) has not contributed to the health care stitution. PROGRAMS TO MEET CERTIFICATION REQUIRE- benefits of its employees for at least 12 (3) Congress has an obligation to reaffirm MENTS.— months consecutively or currently provides the right of each American to have an equal

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opportunity to vote and have that vote ‘‘(d) EFFECTIVE DATE.—Each State shall be ‘‘(D) The requirements of this paragraph counted in Federal elections, regardless of required to comply with the requirements of shall not apply to any voting system pur- color, ethnicity, disability, language, or the this section on and after January 1, 2007.’’. chased before January 1, 2009, in order to resources of the community in which they (2) CONFORMING AMENDMENT.—Section 401 meet the requirements of paragraph (3)(B).’’. live. of the Help America Vote Act of 2002 (42 (2) CONFORMING AMENDMENT.—Clause (i) of (4) Congress has an obligation to ensure U.S.C. 15511) is amended by striking ‘‘and section 301(a)(1)(A) of the Help America Vote the uniform and nondiscriminatory exercise 303’’ and inserting ‘‘303, and subtitle C’’. Act of 2002 (42 U.S.C. 15481(a)(1)(A)(i)) is of that right by removing barriers in the (b) NATIONAL FEDERAL WRITE-IN ABSENTEE amended by inserting ‘‘and consistent with form of election administration procedures BALLOT.— the requirements of paragraphs (2), (4), and and technology and insufficient and unequal (1) IN GENERAL.—Title II of the Help Amer- (7)’’ after ‘‘independent manner’’. resources of State and local governments. ica Vote Act of 2002 (42 U.S.C. 15321 et seq.) (b) GUIDANCE.—Subtitle E of Title II of the (b) PURPOSES.—The purposes of this Act is amended by adding at the end the fol- Help America Vote Act of 2002, as added by are as follows: lowing new subtitle: this Act, is amended by adding at the end the following new section: (1) To secure the opportunity to partici- ‘‘Subtitle E—Guidance and Standards pate in democracy for all eligible American ‘‘SEC. 298. VOTER VERIFIED BALLOTS. ‘‘SEC. 297. NATIONAL FEDERAL WRITE-IN ABSEN- ‘‘The Commission shall issue uniform and citizens by establishing a national Federal TEE BALLOT. nondiscriminatory standards— write-in absentee ballot for Federal elec- ‘‘(a) FORM OF BALLOT.—The Commission ‘‘(1) for voter verified ballots required tions. shall prescribe a national Federal write-in under section 301(a)(7); and (2) To expand and establish uniform and absentee ballot (including a secrecy envelope ‘‘(2) for meeting the audit requirements of nondiscriminatory requirements and stand- and mailing envelope for such ballot) for use ards to remove administrative procedural section 301(a)(2).’’. in elections for Federal office. (c) REPORTS.— barriers and technological obstacles to cast- ‘‘(b) STANDARDS.—The Commission shall ing a vote and having that vote counted in (1) ELECTION ASSISTANCE COMMISSION.—Sec- prescribe standards for— tion 207 of the Help America Vote Act of 2002 Federal elections. ‘‘(1) distributing the national Federal (3) To expand and establish uniform and (42 U.S.C. 15327) is amended by redesignating write-in absentee ballot, including standards paragraph (5) as paragraph (6) and by insert- nondiscriminatory requirements and stand- for distributing such ballot through the ards to provide for the accessibility, accu- ing after paragraph (4) the following new Internet; and paragraph: racy, verifiability, privacy, and security of ‘‘(2) processing and submission of the na- ‘‘(5) A description of the progress on imple- all voting systems and technology used in tional Federal write-in absentee ballot.’’. menting the voter verified ballot require- Federal elections. (2) CONFORMING AMENDMENT.—Section 202 ments of section 301(a)(7) and the impact of (4) To provide a Federal funding mecha- of the Help America Vote Act of 2002 (42 the use of such requirements on the accessi- nism for the States to implement the re- U.S.C. 15322) is amended by redesignating bility, privacy, security, usability, and quirements and standards to preserve and paragraphs (5) and (6) as paragraphs (6) and auditability of voting systems.’’. protect voting rights and th integrity of Fed- (7), respectively, and by inserting after para- (2) STATE REPORTS.—Section 258 of the Help eral elections in the United States. graph (4) the following new paragraph: America Vote Act of 2002 (42 U.S.C. 15408) is SEC. 3. NATIONAL FEDERAL WRITE-IN ABSENTEE ‘‘(5) carrying out the duties described in amended by striking ‘‘and’’ at the end of BALLOT. subtitle E.’’. paragraph (2), by striking the period at the (a) IN GENERAL.— (c) COORDINATION WITH UNIFORMED AND end of paragraph (3) and inserting ‘‘; and’’, (1) IN GENERAL.—Title III of the Help Amer- OVERSEAS CITIZENS ABSENTEE VOTING ACT.— and by adding at the end the following new ica Vote Act of 2002 (42 U.S.C. 15481 et seq.) (1) IN GENERAL.—The Presidential designee paragraph: is amended by adding at the end the fol- under the Uniformed and Overseas Absentee ‘‘(4) an analysis and description in the lowing new subtitle: Voting Act, in consultation with the Elec- form and manner prescribed by the Commis- ‘‘Subtitle C—Additional Requirements tion Assistance Commission, shall facilitate sion of the progress on implementing the ‘‘SEC. 321. USE OF NATIONAL FEDERAL WRITE-IN the use and return of the national Federal voter verified ballot requirements of section ABSENTEE BALLOT. write-in ballot for absent uniformed services 301(a)(7).’’. ‘‘(a) IN GENERAL.—Any person who is oth- voters and overseas voters. SEC. 5. REQUIREMENTS FOR COUNTING PROVI- erwise qualified to vote in a Federal election (2) DEFINITIONS.—The terms ‘‘absent uni- SIONAL BALLOTS. in a State shall be permitted to use the na- formed service voter’’ and ‘‘overseas voter’’ (a) IN GENERAL.—Section 302 of the Help tional Federal write-in absentee ballot pre- shall have the meanings given such terms by America Vote Act of 2002 (42 U.S.C. 15482) is scribed by the Election Assistance Commis- section 107 of the Uniformed and Overseas amended by redesignating subsection (d) as sion under section 298 to cast a vote in an Citizens Absentee Voting Act (42 U.S.C. subsection (e) and by inserting after sub- election for Federal office. 1973gg–6). section (c) the following new subsection: ‘‘(b) SUBMISSION AND PROCESSING.— SEC. 4. VOTER VERIFIED BALLOTS. ‘‘(d) STATEWIDE COUNTING OF PROVISIONAL ‘‘(1) IN GENERAL.—Except as otherwise pro- (a) VERIFICATION.— BALLOTS.—For purposes of subsection (a)(4), vided in this section, a national Federal (1) IN GENERAL.—Section 301(a) of the Help notwithstanding at which polling place a write-in absentee ballot shall be submitted America Vote Act of 2002 (42 U.S.C. 15481(a)) provisional ballot is cast within the State, and processed in the manner provided by law is amended by adding at the end the fol- the State shall count such ballot if the indi- for absentee ballots in the State involved. lowing new paragraph: vidual who cast such ballot is otherwise eli- gible to vote.’’. ‘‘(2) DEADLINE.—An otherwise eligible na- ‘‘(7) VOTER VERIFIED BALLOTS.—In order to (b) EFFECTIVE DATE.— tional Federal write-in absentee ballot shall meet the requirements of paragraph (1)(A)(i), (1) IN GENERAL.—Subsection (e) of section on and after January 1, 2009: be counted if postmarked or signed before 302 of the Help America Vote Act of 2002 (42 ‘‘(A) The voting system shall provide an the close of the polls on election day and re- U.S.C. 15482(e)), as redesignated under sub- independent means of voter verification ceived by the appropriate State election offi- section (a), is amended by adding at the end cial on or before the date which is 10 days which meets the requirements of subpara- the following: after the date of the election or the date pro- graph (B) and which allows each voter to ‘‘(2) EFFECTIVE DATE FOR STATEWIDE COUNT- vided for receipt of absentee ballots under verify the ballot before it is cast and count- ING OF PROVISIONAL BALLOTS.—Each State State law, whichever is later. ed. shall be required to comply with the require- ‘‘(c) SPECIAL RULES.—The following rules ‘‘(B) A means of voter verification meets ments of subsection (d) on and after January shall apply with respect to national Federal the requirements of this subparagraph if the 1, 2007.’’. write-in absentee ballots: voting system allows the voter to choose (2) CONFORMING AMENDMENT.—Subsection ‘‘(1) In completing the ballot, the voter from one of the following options to verify (e) of section 302 of the Help America Vote may designate a candidate by writing in the the voter’s vote selection: Act of 2002 (42 U.S.C. 15482(e)), as redesig- name of the candidate or by writing in the ‘‘(i) A paper record. nated under subsection (a), is amended by name of a political party (in which case the ‘‘(ii) An audio record. striking ‘‘Each’’ and inserting the following: ballot shall be counted for the candidate of ‘‘(iii) A pictorial record. ‘‘(1) IN GENERAL.—Except as provided in that political party). ‘‘(iv) An electronic record or other means paragraph (2), each’’. ‘‘(2) In the case of the offices of President that provides for voter verification that is SEC. 6. MINIMUM REQUIRED VOTING SYSTEMS and Vice President, a vote for a named can- accessible for individuals with disabilities, AND POLL WORKERS IN POLLING didate or a vote by writing in the name of a including nonvisual accessibility for the PLACES. political party shall be counted as a vote for blind and visually impaired, in a manner (a) IN GENERAL.—Subtitle C of title III of the electors supporting the candidate in- that provides privacy and independence the Help America Vote Act of 2002, as added volved. equal to that provided for other voters. by this Act, is amended by adding at the end ‘‘(3) Any abbreviation, misspelling, or ‘‘(C) Any means of verification described in the following new section: other minor variation in the form of the clause (ii), (iii), or (iv) of subparagraph (B) ‘‘SEC. 322. MINIMUM REQUIRED VOTING SYSTEMS name of a candidate or a political party shall must provide verification which is equal or AND POLL WORKERS. be disregarded in determining the validity of superior to verification through the use of a ‘‘(a) IN GENERAL.—Each State shall provide the ballot. paper record. for the minimum required number of voting

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systems and poll workers for each polling ‘‘(b) NOTICE TO INDIVIDUAL VOTERS.— (b) CLARIFICATION OF REQUIREMENTS FOR place on the day of any Federal election and ‘‘(1) IN GENERAL.—No individual shall be re- PUNCH CARD SYSTEMS.—Subparagraph (A) of on any days during which such State allows moved from the voter registration list under section 301(a)(1) of the Help America Vote early voting for a Federal election in accord- section 303 unless such individual is first pro- Act of 2002 (42 U.S.C. 15481(a)(1)(A)) is amend- ance with the standards determined under vided with a notice which meets the require- ed by inserting ‘‘punch card voting system,’’ section 299A ments of paragraph (2). after ‘‘any’’. ‘‘(b) EFFECTIVE DATE.—Each State shall be ‘‘(2) REQUIREMENTS OF NOTICE.—The notice SEC. 12. VOTER REGISTRATION. required to comply with the requirements of required under paragraph (1) shall be— (a) IN GENERAL.—Paragraph (4) of section this section on and after January 1, 2007.’’. ‘‘(A) provided to each voter in a uniform 303(b) of the Help America Vote Act of 2002 (b) STANDARDS.—Subtitle E of the Help and nondiscriminatory manner; (42 U.S.C. 15483(b)(4)) is amended by adding America Vote Act of 2002, as added and ‘‘(B) consistent with the requirements of at the end the following new subparagraph: amended by this Act, is amended by adding the National Voter Registration Act of 1993 ‘‘(C) EXCEPTION.—On and after January 1, at the end the following new section: (42 U.S.C. 1973gg et seq.); and 2007— ‘‘SEC. 299. STANDARDS FOR ESTABLISHING THE ‘‘(C) in the form and manner prescribed by ‘‘(i) in lieu of the questions and statements MINIMUM REQUIRED VOTING SYS- the Election Assistance Commission. TEMS AND POLL WORKERS. required under subparagraph (A), such mail ‘‘(c) EFFECTIVE DATE.—Each State shall be voter registration form shall include an affi- ‘‘(a) IN GENERAL.—The Commission shall required to comply with the requirements of issue standards regarding the minimum davit to be signed by the registrant attesting this section on and after January 1, 2007.’’. both to citizenship and age; and number of voting systems and poll workers SEC. 9. EARLY VOTING. required in each polling place on the day of ‘‘(ii) subparagraph (B) shall not apply.’’. (a) IN GENERAL.—Subtitle C of title III of (b) INTERNET REGISTRATION.—Subtitle C of any Federal election and on any days during the Help America Vote Act of 2002, as added which early voting is allowed for a Federal title III of the Help America Vote Act of and amended by this Act, is amended by add- 2002, as added and amended by this Act, is election. ing at the end the following new section: ‘‘(b) DISTRIBUTION.—The standards de- amended by adding at the end the following ‘‘SEC. 325. EARLY VOTING. scribed in subsection (a) shall provide for a new section: ‘‘(a) IN GENERAL.—Each State shall allow ‘‘SEC. 326. INTERNET REGISTRATION. uniform and nondiscriminatory geographic individuals to vote in an election for Federal ‘‘(a) INTERNET REGISTRATION.—Each State distribution of such systems and workers. office not less than 15 days prior to the day ‘‘(c) DEVIATION.—The standards described shall establish a program under which indi- scheduled for such election in the same man- in subsection (a) shall permit States, upon viduals may access and submit voter reg- ner as voting is allowed on such day. providing adequate public notice, to deviate ‘‘(b) MINIMUM EARLY VOTING REQUIRE- istration forms electronically through the from any allocation requirements in the case MENTS.—Each polling place which allows vot- Internet. of unforseen circumstances such as a natural ing prior to the day of a Federal election ‘‘(b) EFFECTIVE DATE.—Each State shall be disaster, terrorist attack, or a change in pursuant to subsection (a) shall— required to comply with the requirements of voter turnout.’’. ‘‘(1) allow such voting for no less than 4 this section on and after January 1, 2009.’’. SEC. 7. ELECTION DAY REGISTRATION. hours on each day (other than Sunday); and (c) STANDARDS FOR INTERNET REGISTRA- (a) REQUIREMENT.—Subtitle C of title III of ‘‘(2) have uniform hours each day for which TION.—Subtitle E of the Help America Vote the Help America Vote Act of 2002 is, as such voting occurs. Act of 2002, as added and amended by this added and amended by this Act, is amended ‘‘(c) EFFECTIVE DATE.—Each State shall be Act, is amended by adding at the end the fol- by adding at the end the following new sec- required to comply with the requirements of lowing new section: tion: this section on and after January 1, 2007.’’. ‘‘SEC. 299C. STANDARDS FOR INTERNET REG- ‘‘SEC. 323. ELECTION DAY REGISTRATION. (b) STANDARDS FOR EARLY VOTING.—Sub- ISTRATION PROGRAMS. ‘‘(a) IN GENERAL.— title E of the Help America Vote Act of 2002, ‘‘The Commission shall establish standards ‘‘(1) REGISTRATION.—Notwithstanding sec- as added and amended by this Act, is amend- regarding the design and operation of pro- tion 8(a)(1)(D) of the National Voter Reg- ed by adding at the end the following new grams which allow electronic voter registra- istration Act of 1993 (42 U.S.C. 1973gg–6), each section: tion through the Internet.’’. State shall permit any individual on the day ‘‘SEC. 299B. STANDARDS FOR EARLY VOTING. SEC. 13. ESTABLISHING VOTER IDENTIFICATION. of a Federal election— ‘‘(a) IN GENERAL.—The Commission shall (a) IN GENERAL.— ‘‘(A) to register to vote in such election at issue standards for the administration of (1) IN PERSON VOTING.—Clause (i) of section the polling place using the form established voting prior to the day scheduled for a Fed- 303(b)(2)(A) of the Help America Vote Act of by the Election Assistance Commission pur- eral election. Such standards shall include 2002 (42 U.S.C. 15483(b)(2)(A)(i)) is amended by suant to section 297; and the nondiscriminatory geographic placement striking ‘‘or’’ at the end of subclause (I) and ‘‘(B) to cast a vote in such election. of polling places at which such voting oc- by adding at the end the following new sub- ‘‘(2) EXCEPTION.—The requirements under curs. clause: paragraph (1) shall not apply to a State in ‘‘(b) DEVIATION.—The standards described ‘‘(III) executes a written affidavit attesting which, under a State law in effect continu- in subsection (a) shall permit States, upon to such individual’s identity; or’’. ously on and after the date of the enactment providing adequate public notice, to deviate (2) VOTING BY MAIL.—Clause (ii) of section of this Act, there is no voter registration re- from any requirement in the case of 303(b)(2)(A) of the Help America Vote Act of quirement for individuals in the State with unforseen circumstances such as a natural 2002 (42 U.S.C. 15483(b)(2)(A)(ii)) is amended respect to elections for Federal office. disaster, terrorist attack, or a change in by striking ‘‘or’’ at the end of subclause (I), ‘‘(b) EFFECTIVE DATE.—Each State shall be voter turnout.’’. by striking the period at the end of sub- required to comply with the requirements of SEC. 10. ACCELERATION OF STUDY ON ELECTION clause (II) and inserting ‘‘; or’’, and by add- subsection (a) on and after January 1, 2007.’’. DAY AS A PUBLIC HOLIDAY. ing at the end the following new subclause: (b) ELECTION DAY REGISTRATION FORM.— (a) IN GENERAL.—Section 241 of the Help ‘‘(III) a written affidavit, executed by such Subtitle E of Title II of the Help America America Vote Act of 2002 (42 U.S.C. 15381) is individual, attesting to such individual’s Vote Act of 2002, as added and amended by amended by adding at the end the following identity.’’. this Act, is amended by adding at the end new subsection: (b) STANDARDS FOR VERIFYING VOTER IN- the following new section: ‘‘(d) REPORT ON ELECTION DAY.— FORMATION.—Subtitle E of the Help America ‘‘(1) IN GENERAL.—The report required ‘‘SEC. 299A. ELECTION DAY REGISTRATION FORM. Vote Act of 2002, as added and amended by under subsection (a) with respect to election ‘‘The Commission shall develop an election this Act, is amended by adding at the end administration issues described in sub- day registration form for elections for Fed- the following new section: eral office.’’. section (b)(10) shall be submitted not later ‘‘SEC. 299D. VOTER IDENTIFICATION. SEC. 8. INTEGRITY OF VOTER REGISTRATION than 6 months after the date of the enact- LIST. ment of the Voting Enhancement and Tech- ‘‘The Commission shall develop standards Subtitle C of title III of the Help America nology Accuracy Rights Act of 2005. for verifying the identification information Vote Act of 2002, as added and amended by ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— required under section 303(a)(5) in connection this Act, is amended by adding at the end Of the amount authorized to be appropriated with the registration of an individual to vote the following new section: under section 210 for fiscal year 2006, $100,000 in a Federal election.’’. ‘‘SEC. 324. REMOVAL FROM VOTER REGISTRA- shall be authorized solely to carry out the SEC. 14. IMPARTIAL ADMINISTRATION OF ELEC- TION LIST. purposes of this subsection.’’. TIONS. ‘‘(a) PUBLIC NOTICE.—Not later than 45 (b) EFFECTIVE DATE.—The amendment Subtitle C of title III of the Help America days before any Federal election, each State made by this section shall take effect on the Vote Act of 2002, as added and amended by shall provide public notice of all names date of the enactment of this Act. this Act, is amended by adding at the end which have been removed from the voter reg- SEC. 11. IMPROVEMENTS TO VOTING SYSTEMS. the following new section: istration list of such State under section 303 (a) IN GENERAL.—Subparagraph (B) of sec- ‘‘SEC. 327. ELECTION ADMINISTRATION REQUIRE- since the later of the most recent election tion 301(a)(1) of the Help America Vote Act MENTS. for Federal office or the day of the most re- of 2002 (42 U.S.C. 15481(a)(1)(B)) is amended by ‘‘(a) NOTICE OF CHANGES IN STATE ELECTION cent previous public notice provided under striking ‘‘, a punch card voting system, or a LAWS.—Not later than 15 days prior to any this section. central count voting system’’. Federal election, each State shall issue a

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00100 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S207 public notice describing all changes in State SEC. 16. AUTHORIZATION OF APPROPRIATIONS. amended by striking subsection (i) (relating law affecting the administration of Federal Subsection (a) of section 257 of the Help to noninterference) and by inserting the fol- elections since the most recent prior elec- America Vote Act of 2002 (42 U.S.C. 15408(a)) lowing new subsection: tion. is amended by adding at the end the fol- ‘‘(i) AUTHORITY TO NEGOTIATE PRICES WITH ‘‘(b) OBSERVERS.— lowing new paragraphs: MANUFACTURERS.— ‘‘(1) IN GENERAL.—Each State shall allow ‘‘(4) For fiscal year 2006, $2,000,000,000. ‘‘(1) IN GENERAL.—The Secretary shall have uniform and nondiscriminatory access to ‘‘(5) For each fiscal year after 2006, such authority similar to that of other Federal any polling place for purposes of observing a sums as are necessary.’’. entities that purchase prescription drugs in Federal election to— SEC. 17. EFFECTIVE DATE. bulk to negotiate contracts with manufac- ‘‘(A) party challengers; (a) IN GENERAL.—Except as provided by turers of covered part D drugs, consistent ‘‘(B) voting rights and civil rights organi- section 10 and subsection (b), the amend- with the requirements and in furtherance of zations; and ments made by this Act shall take effect on the goals of providing quality care and con- ‘‘(C) nonpartisan domestic observers and January 1, 2007. taining costs under this part. international observers. (b) EXCEPTIONS.—The amendments made by ‘‘(2) REQUIRED USE OF AUTHORITY.— ‘‘(2) NOTICE OF DENIAL OF OBSERVATION RE- section 4, section 11, section 12(b), and sub- ‘‘(A) FALLBACK PLANS.—The Secretary QUEST.—Each State shall issue a public no- sections (a) and (b) of section 15 shall take shall exercise the authority described in tice with respect to any denial of a request effect on January 1, 2009. paragraph (1) with respect to covered part D by any observer described in paragraph (1) drugs offered under each fallback prescrip- for access to any polling place for purposes By Mr. DAYTON (for himself, Mr. tion drug plan under subsection (g). of observing a Federal election. Such notice REID, Ms. STABENOW, Mrs. FEIN- ‘‘(B) PDPS AND MA–PD PLANS.—In order to shall be issued not later than 24 hours after STEIN, Mr. KENNEDY, Mr. ensure that beneficiaries enrolled under pre- such denial. CORZINE, Mr. SCHUMER, Mrs. scription drug plans and MA–PD plans and ‘‘(c) EFFECTIVE DATE.—Each State shall be MURRAY, Ms. MIKULSKI, Mr. taxpayers are getting fair and affordable prices for covered part D drugs that reflect required to comply with the requirements of LAUTENBERG, Mr. AKAKA, Mr. this section on and after January 1, 2007.’’. the bulk purchasing power of such enrollees, INOUYE, Mrs. CLINTON, Mr. SEC. 15. STRENGTHENING THE ELECTION ASSIST- the Secretary shall exercise the authority ANCE COMMISSION. LEVIN, Mr. KERRY, Mr. LEAHY, described in paragraph (1) with respect to (a) BUDGET REQUESTS.—Part 1 of subtitle A Mr. ROCKEFELLER, Mr. DODD, such drugs offered under all such plans if the of title II of the Help America Vote Act of Mr. SARBANES, and Mr. DURBIN): Secretary determines that the negotiated 2002 (42 U.S.C. 15321 et seq.) is amended by in- S. 18. A bill to amend title XVIII of prices available under such plans for such serting after section 209 the following new the Social Security Act to make im- drugs are not fair and affordable prices com- section: provements to the medicare program pared to the prices obtained by other Federal ‘‘SEC. 209A. SUBMISSION OF BUDGET REQUESTS. for beneficiaries; to the Committee on government programs for such drugs.’’. ‘‘Whenever the Commission submits any Finance. (b) EFFECTIVE DATE.—The amendment budget estimate or request to the President made by this section shall take effect as if Mr. DAYTON. Mr. President, I ask included in the enactment of section 101(a) of or the Office of Management and Budget, it unanimous consent that the text of the shall concurrently transmit a copy of such the Medicare Prescription Drug, Improve- bill be printed in the RECORD. ment, and Modernization Act of 2003 (Public estimate or request to the Congress and to There being no objection, the bill was the Committee on House Administration of Law 108–173; 117 Stat. 2071). ordered to be printed in the RECORD, as the House of Representatives and the Com- SEC. 102. ELIMINATION OF MA REGIONAL PLAN follows: STABILIZATION FUND (SLUSH mittee on Rules and Administration of the FUND). Senate.’’. S. 18 (a) IN GENERAL.—Subsection (e) of section (b) EXEMPTION FROM PAPERWORK REDUC- Be it enacted by the Senate and House of Rep- 1858 of the Social Security Act (42 U.S.C. TION ACT.—Paragraph (1) of section 3502 of resentatives of the United States of America in 1395w–27a) is repealed. title 44, United States Code, is amended by Congress assembled, (b) CONFORMING AMENDMENT.—Section redesignating subparagraphs (B), (C), and (D) SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1858(f)(1) of the Social Security Act (42 U.S.C. as subparagraphs (C), (D), and (E), respec- (a) SHORT TITLE.—This Act may be cited as 1395w–27a(f)(1)) is amended by striking ‘‘sub- tively, and by inserting after subparagraph the ‘‘Meeting Our Responsibility to Medicare ject to subsection (e),’’. (A) the following new subparagraph: Beneficiaries Act of 2005’’. (c) EFFECTIVE DATE.—The amendments ‘‘(B) the Election Assistance Commis- (b) TABLE OF CONTENTS.—The table of con- made by this section shall take effect as if sion;’’. tents of this Act is as follows: included in the enactment of section 221(c) of (c) RULEMAKING.—Section 209 of the Help Sec. 1. Short title; table of contents. the Medicare Prescription Drug, Improve- America Vote Act of 2002 (42 U.S.C. 15239) is TITLE I—ELIMINATING SPECIAL ment, and Modernization Act of 2003 (Public amended— INTEREST PREFERENCES Law 108–173; 117 Stat. 2181). (1) by striking ‘‘The Commission’’ and in- Sec. 101. Negotiating fair prices for medi- SEC. 103. APPLICATION OF RISK ADJUSTMENT serting the following: care prescription drugs. REFLECTING CHARACTERISTICS ‘‘(a) IN GENERAL.—Except as provided in Sec. 102. Elimination of MA Regional Plan FOR THE ENTIRE MEDICARE POPU- subsection (b), the Commission’’, and Stabilization Fund (Slush LATION IN PAYMENTS TO MEDICARE ADVANTAGE ORGANIZATIONS. (2) by inserting at the end the following Fund). new subsection: Sec. 103. Application of risk adjustment re- Effective January 1, 2006, in applying risk ‘‘(b) EXCEPTION.—On and after January 1, flecting characteristics for the adjustment factors to payments to organiza- 2007, subsection (a) shall not apply to any au- entire medicare population in tions under section 1853 of the Social Secu- thority granted under subtitle E of this title payments to Medicare Advan- rity Act (42 U.S.C. 1395w–23), the Secretary of or subtitle C of title III.’’. tage organizations. Health and Human Services shall ensure that (d) NIST AUTHORITY.—Subtitle E of title II payments to such organizations are adjusted TITLE II—IMPROVING THE MEDICARE based on such factors to ensure that the of the Help America Vote Act of 2002, as PROGRAM FOR BENEFICIARIES added and amended by this Act, is amended health status of the enrollee is reflected in by adding at the end the following new sec- Sec. 201. Eliminating coverage gap. such adjusted payments, including adjusting Sec. 202. Requiring two prescription drug tion: for the difference between the health status plans to avoid Federal fallback. of the enrollee and individuals enrolled ‘‘SEC. 299E. TECHNICAL SUPPORT. Sec. 203. Waiver of part D late enrollment under the original medicare fee-for-service ‘‘At the request of the Commission, the Di- penalty for transition period. rector of the National Institute of Standards Sec. 204. Improving the transition of full- program under parts A and B of title XVIII and Technology shall provide the Commis- benefit dual eligible individuals of such Act. Payments to such organizations sion with technical support necessary for the to coverage under the medicare must, in aggregate, reflect such differences. Commission to carry out its duties under drug benefit. TITLE II—IMPROVING THE MEDICARE this title.’’. Sec. 205. Part B premium reduction. PROGRAM FOR BENEFICIARIES (e) AUTHORIZATION OF APPROPRIATIONS.— Sec. 206. Study and report on providing in- SEC. 201. ELIMINATING COVERAGE GAP. Section 210 of the Help America Vote Act of centives to preserve retiree cov- (a) IN GENERAL.—Section 1860D–2(b)(4)(B) 2002 (42 U.S.C. 15330) is amended by striking erage. of the Social Security Act (42 U.S.C. 1395w– ‘‘for each of fiscal years 2003 through 2005 Sec. 207. Promoting transparency in em- 102(b)(4)(B)) is amended to read as follows: such sums as may be necessary (but not to ployer subsidy payments. ‘‘(B) ANNUAL OUT-OF-POCKET THRESHOLD.— exceed $10,000,000 for each such year)’’ and TITLE I—ELIMINATING SPECIAL For purposes of this part, the ‘annual out-of- inserting ‘‘$23,000,000 for fiscal year 2006 (of INTEREST PREFERENCES pocket threshold’ specified in this subpara- which $3,000,000 are authorized solely to SEC. 101. NEGOTIATING FAIR PRICES FOR MEDI- graph for a year is equal to the greater of— carry out the purposes of section 299E) and CARE PRESCRIPTION DRUGS. ‘‘(i) $3,600; or such sums as may be necessary for suc- (a) IN GENERAL.—Section 1860D–11 of the ‘‘(ii) the initial coverage limit for the year ceeding fiscal years’’. Social Security Act (42 U.S.C. 1395w–111) is specified in paragraph (3).’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00101 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S208 CONGRESSIONAL RECORD — SENATE January 24, 2005 (b) CONFORMING AMENDMENT.—Section for increased costs for the provision of med- Now their target is Social Security. 1860D–22(a)(3)(B)(ii) of the Social Security ical assistance incurred by the State or the They want to privatize this trusted Act (42 U.S.C. 1395w–132(b)(4)(B)(ii)) is District of Columbia by reason of the appli- program for the benefit of Wall Street amended by striking ‘‘and the annual out-of- cation of the transition period required bankers. They even want to cut bene- pocket threshold, respectively, are annually under this section. adjusted under paragraphs (1) and (4)(B) of SEC. 205. PART B PREMIUM REDUCTION. fits for women because—in the Repub- section 1860D–2(b)’’ and inserting ‘‘is annu- Section 1839(a) of the Social Security Act lican view—they live too long. It’s time ally adjusted under paragraph (1) of section (42 U.S.C. 1395r(a)) is amended— to end these shameful attacks on our 1860D–2(b) (using the percentage increase (1) in paragraph (3), in the first sentence, senior citizens, restore Medicare and specified in paragraph (6) of such section)’’. by striking ‘‘The Secretary’’ and inserting protect Social Security. (c) EFFECTIVE DATE.—The amendments ‘‘Subject to paragraph (5), the Secretary’’; I commend the leadership of my col- made by this section shall take effect as if and league from Minnesota, Senator DAY- included in the enactment of section 101(a) of (2) by adding at the end the following new TON, and our Democratic Leader, Sen- the Medicare Prescription Drug, Improve- paragraph: ment, and Modernization Act of 2003 (Public ‘‘(5) For each year (beginning with 2006), ator REID, in introducing this urgently Law 108–173; 117 Stat. 2071). the Secretary shall reduce the monthly pre- needed legislation today to enable SEC. 202. REQUIRING TWO PRESCRIPTION DRUG mium rate determined under paragraph (3) Medicare to keep its promise to the el- PLANS TO AVOID FEDERAL FALL- for each month in the year for each indi- derly. BACK. vidual enrolled under this part (including Forty years ago, Congress enacted (a) IN GENERAL.—Section 1860D–3(a) of the such an individual subject to an increased the landmark legislation that estab- Social Security Act (42 U.S.C. 1395w–103(a)) is premium under subsection (b) or (i)) so that lished Medicare. We would do well amended— the aggregate amount of such reductions in (1) in paragraph (1)— the year is equal to the aggregate amount of today to remember President Lyndon (A) by striking ‘‘qualifying plans (as de- reduced expenditures from the Federal Sup- Johnson’s words on signing that his- fined in paragraph (3))’’ and inserting ‘‘pre- plementary Medicare Insurance Trust Fund toric bill in 1965: ‘‘No longer will older scription drug plans’’; and in the year that the Secretary estimates will Americans be denied the healing mir- (B) by striking ‘‘, at least one of which is result from the provisions of section 103 of acle of modern medicine. No longer a prescription drug plan’’; the Meeting Our Responsibility to Medicare will illness crush and destroy the sav- (2) in paragraph (2), by striking ‘‘qualifying Beneficiaries Act of 2005.’’. ings they have so carefully put away plans’’ and inserting ‘‘prescription drug SEC. 206. STUDY AND REPORT ON PROVIDING IN- over a lifetime so that they might plans’’; and CENTIVES TO PRESERVE RETIREE (3) by striking paragraph (3). COVERAGE. enjoy dignity in their later years.’’ (b) EFFECTIVE DATE.—The amendments (a) STUDY.—The Secretary of Health and The ruinous Medicare legislation made by this section shall take effect as if Human Services shall conduct a study to de- that the Republican Congress enacted included in the enactment of section 101(a) of termine what additional incentives should be in 2003 breaks that solemn promise. the Medicare Prescription Drug, Improve- provided to employers in order for such em- Before Medicare was created, mil- ment, and Modernization Act of 2003 (Public ployers to continue to provide retirees with lions of seniors could obtain health Law 108–173; 117 Stat. 2071). prescription drug coverage. Such study shall include an assessment of permitting costs in- care coverage only at the whim of the SEC. 203. WAIVER OF PART D LATE ENROLLMENT insurance industry. If they were too PENALTY FOR TRANSITION PERIOD. curred by an employer for covered part D (a) IN GENERAL.—Section 1860D–13(b) of the drugs on behalf of a retiree to be treated as sick or too poor to be profitable to an Social Security Act (42 U.S.C. 1895w–113(b)) is incurred costs for purposes of reaching the insurance company, they would be de- amended by adding at the end the following annual out-of-pocket threshold under section nied health care coverage. Their sav- new paragraph: 1860D–2(b)(4) of the Social Security Act (42 ings—and their children’s savings— ‘‘(8) WAIVER OF PENALTY FOR MONTHS PRIOR U.S.C. 1395w–102(b)(4)). were in jeopardy when illness struck. (b) REPORT.—Not later than January 1, TO 2008.—A part D eligible individual who en- Before Medicare, senior citizens were rolls for the first time in a prescription drug 2006, the Secretary of Health and Human Services shall submit to Congress a report on among the poorest Americans, with al- plan or an MA–PD plan under this part prior most three in ten living in poverty. to January 1, 2008, shall not be subject an in- the study under subsection (a) together with crease in the monthly beneficiary premium such recommendations for legislation as the Bankruptcies from overwhelming med- established under subsection (a) with respect Secretary deems appropriate. ical bills were common. to months occurring prior to such date.’’. SEC. 207. PROMOTING TRANSPARENCY IN EM- Medicare changed all that, and 40 PLOYER SUBSIDY PAYMENTS. (b) EFFECTIVE DATE.—The amendment years later, President Bush and the Re- made by this section shall take effect as if (a) IN GENERAL.—Section 1860D–22(a) of the Social Security Act (42 U.S.C. 1895w–132(a)) is publican Congress are wrong to try to included in the enactment of section 101(a) of turn back the clock. the Medicare Prescription Drug, Improve- amended by adding at the end the following new paragraph: Some of my colleagues attempt to ment, and Modernization Act of 2003 (117 portray Medicare as a failure. But the Stat. 2071). ‘‘(7) DISCLOSURE OF CERTAIN INFORMATION.— The Secretary shall make the following in- facts show that it is one of the most SEC. 204. IMPROVING THE TRANSITION OF FULL- BENEFIT DUAL ELIGIBLE INDIVID- formation regarding the sponsor of a quali- successful endeavors the Nation has UALS TO COVERAGE UNDER THE fied prescription drug plan receiving a sub- ever undertaken. In 1963, before Medi- MEDICARE DRUG BENEFIT. sidy under this section available to the pub- care was enacted, almost half of Amer- (a) IN GENERAL.—Notwithstanding sub- lic through the Internet website of the Cen- ica’s seniors were uninsured. Today ters for Medicare & Medicaid Services and section (d)(1) of section 1935 of the Social Se- that number is one in a hundred. curity Act (42 U.S.C. 1396u–5), beginning on other appropriate means: January 1, 2006, the Secretary of Health and ‘‘(A) The information used by the Sec- Before Medicare was enacted, Ameri- Human Services shall administer a 12-month retary to ensure that the prescription drug cans turning 65 could expect to live an- period during which full-benefit dual eligible coverage offered under the plan meets the re- other 14 years. Today, they can expect individuals (as defined in section 1935(c)(6) of quirements for subsidy payments under this almost 18 more years. the Social Security Act) shall gradually section. Seniors understand that Medicare transition from receiving medical assistance ‘‘(B) The total amount of the subsidy pay- works. They don’t want to return to for prescribed drugs under the medicaid pro- ments made to the sponsor under this sec- the days when they had to gamble gram under title XIX of such Act to obtain- tion.’’. (b) EFFECTIVE DATE.—The amendment their health, their savings and their ing coverage of covered part D drugs (as de- lives on risky private insurance. fined in section 1860D–2(e) (42 U.S.C. 1395w– made by this section shall take effect as if 102(e)) under title XVIII of such Act in order included in the enactment of section 101(a) of The 2003 Republican bill was sold to to assure that such individuals continue to the Medicare Prescription Drug, Improve- the American people as a way to help receive the outpatient prescription drugs ment, and Modernization Act of 2003 (Public seniors with the high cost of prescrip- they need. Law 108–173; 117 Stat. 2071). tion drugs, so you might think it does (b) ADJUSTMENTS TO PHASED-DOWN STATE Mr. KENNEDY. Mr. President, the something about the high cost of CONTRIBUTION.—The Secretary of Health and Bush Administration and the Repub- drugs. But it doesn’t. Human Services shall make appropriate ad- lican Congress are no friend of Amer- It not only fails to help Medicare justments to the amount of payments re- ica’s seniors. In 2003, they enacted leg- lower the cost of drugs—it actually quired to be made by a State or the District of Columbia under section 1935(c) of the So- islation to dismantle Medicare, even makes it illegal for Medicare to try. cial Security Act (42 U.S.C. 1396u–5(c)) for though Medicare has helped a genera- Republicans were so worried about pro- months occurring during the period de- tion of seniors live their golden years tecting drug company profits that they scribed in subsection (a) in order to account with health and dignity. made it illegal for Medicare to do what

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00102 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S209 the Veterans Administration does for ing the cap on total out of pocket ex- Senator DAYTON’s legislation pro- veterans—negotiate discounts on drug penditures to rise year after year, as it vides an effective guarantee that sen- prices. The Bush Administration and does under the GOP act. Under Senator iors who wish to remain in traditional the GOP Congress wouldn’t dare to pro- DAYTON’s proposal, seniors will have Medicare will have a genuine choice of hibit the VA from doing that for the the certainty of knowing where that prescription-only plans. If a choice be- veterans, and they shouldn’t do it for limit is from one year to the next. As tween at least two private drug-only senior citizens either. drug expenses rise, more seniors will plans is not available in any region, The discounts on drug prices for vet- gain the benefit of the assistance from the Federal Government will provide a erans are substantial. On average, the Medicare at these high spending levels, plan. This proposal ensures that any price paid by the VA is 45 percent of and ultimately, the doughnut hole will senior who wishes to remain in Medi- the retail price, but often, the savings close. care will have access to high-quality are even more dramatic. The retail The Republican Medicare law is a affordable prescription drug coverage. price for Mevacor is $4 a pill, but the raw deal for seniors, but it’s a bonanza The Republican Medicare law also VA pays only 23 cents. The for the drug industry and the insurance dealt a harsh blow to the employer undiscounted price of Zantac is $1.83, industry. plans that millions of retirees depend but the VA pays two cents. It gives massive subsidies to HMOs. on. The Congressional Budget Office es- Senator DAYTON’s legislation abol- Most Americans probably think it’s the timates that almost three million re- ishes the unconscionable provision that job of insurance companies to guar- tirees will lose their current drug cov- bars Medicare from negotiating dis- antee the health of their beneficiaries, erage, because employers will drop the counts on drug prices for America’s but according to the Republican view coverage when retirees become eligible seniors. That’s not price control—it’s that’s wrong. They make America’s for the new federal benefit, which is common sense. seniors guarantee the health and not as comprehensive. Republicans also claim that their wealth of HMOs. Democrats fought to include provi- new drug benefit is ‘‘voluntary.’’ Not The government already pays private sions in that flawed legislation to help exactly. If seniors don’t sign up the insurance plans 104 percent of what it employers maintain the good coverage first year, they have to pay more and costs Medicare to provide seniors with that so many Americans depend on to more to join in subsequent years. When the same health care. Republicans meet their needs in retirement. Sadly, they need the coverage, they may not claim to be in favor of competition, but some employers could abuse these sub- be able to afford it. the playing field is tilted toward sidies by failing to use them to assist Senator DAYTON’s legislation re- HMOs, and their 2003 Act tilted it fur- their employees—and the Bush Admin- verses this flagrant system of fines and ther. You might think HMOs need that istration is letting them get away with makes the Medicare drug program overpayment because they serve sicker it. Toothless enforcement and weak truly voluntary. When Congress enacts or needier beneficiaries. Not true. En- regulation allow some unscrupulous it, seniors will be able to sign up for rollees in private plans are actually employers to pocket the subsidy and the drug program without facing ruin- healthier than those in Medicare, re- weaken the coverage. ous fines. sulting in a further bonus of 8.7 percent Senator DAYTON’s legislation will put Good prescription drug coverage for to the private plans. an end to this scandalous practice by senior citizens is a priority for Demo- Senator DAYTON’s legislation re- requiring employers to account for the crats. For the Administration and the quires realistic risk adjustment for pri- funds they receive in subsidies. No Republicans in Congress, however, tax vate plans that provide services to sen- longer will employers be able to hide cuts for billionaires are more impor- iors under Medicare. It removes the ar- that they are accepting subsidies to tant than health care for senior citi- tificial calculations that inflate pay- maintain retiree health coverage and zens. ments to HMOs and other private in- still cut back the coverage. The Day- In addition, the 2003 Medicare law surance carriers. ton bill also requires new research on leaves too many elderly citizens with Another problem with the 2003 Act is ways to help employers maintain re- unaffordable costs. Seniors with mod- that if the subsidies don’t provide tiree coverage. erate incomes and high drug expenses enough profits, the Republican bill pro- One of the most troubling aspects of still face high drug costs. The benefits vides cash handouts for the insurance the 2003 Act is that it victimizes six under the GOP law—with its $250 de- industry. If an HMO doesn’t think it million senior citizens and disabled ductible, 25 percent cost-sharing, an can make enough money in some area people on Medicaid—the poorest of the out-of-pocket limit of $3,600 on costs, of the country, the Bush Administra- poor. Their out-of-pocket payments for but continued co-payment obligations tion can simply ladle out the cash—up drugs will be raised, even though they even after the limit is reached—are far to $12 billion a year—until the bribe is do not even have coverage for the drugs less generous than those enjoyed by high enough to get the company to par- they need the most. most younger Americans, even though ticipate. Today, under Federal law, people the elderly’s need for prescription Senator DAYTON’s legislation re- with drug coverage under Medicaid drugs is much greater. verses this outrageous giveaway and may be charged only nominal amounts Senior citizens with an income of ensures that the dollars devoted to this for the drugs they need. The vast ma- $15,000 and drug expenses of $4,000 slush fund are used instead to provide jority of states charge nothing. would have to pay more than $2,900, in- better health care for seniors. For every other Medicare benefit, cluding premiums, out of their own The Republican law stacks the deck Medicaid wraps around Medicare cov- pocket. That’s too heavy a burden. against seniors in other ways. It allows erage and picks up the out-of-pocket If they fall into the so-called dough- a region to be served by only one pre- costs that Medicare does not pay. Not nut hole, their situation is much scription drug plan, along with a PPO. under this legislation. States are pro- worse. Under the 2003 law, the govern- That gives the drug plan a monopoly in hibited from wrapping around the ment makes no contribution to any that region for seniors who want to re- Medicare benefits with their Medicaid drug costs between $2,250 in expendi- main in Medicare. If the only available program. Instead, a uniform Federal tures and $5,100 in expenditures. Pa- drug plan is tailored to the healthiest co-payment is imposed. It is indexed, tients who need $5,200 worth of pre- and youngest seniors, it might be ac- so that it increases every year. If low scriptions could be forced to pay $2,850 ceptable for a senior whose prescrip- income seniors need a drug that is not in drug expenses without any help at tion needs are limited. But it gives no in the insurance company formulary, all from Medicare. That’s too much for help to seniors who take medications they have to go through a burdensome an elderly person to pay and still meet for multiple chronic conditions every appeals process. Most will simply go other essential medical needs, pay the day. Seniors have no real recourse if without the drug they need. rent or mortgage, and buy food and they can’t afford the monopoly drug The people we are talking about are other necessities of life. plan. The only way they can get pre- truly the poorest of the poor. In most Senator DAYTON’s proposal begins to scription drug coverage is to enroll in cases, their incomes are well below fill in that doughnut hole by not allow- the PPO. poverty. And the impact of even small

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00103 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S210 CONGRESSIONAL RECORD — SENATE January 24, 2005 co-payments is devastating. Study U.S.C. 900 note) is amended by adding at the SECTION 1. SHORT TITLE; TABLE OF CONTENTS. after study finds that when the poor end the following: (a) SHORT TITLE.—This Act may be cited as have to pay more for drugs, they end ‘‘(d) REENACTMENT.—Part C of this title is the ‘‘Prevention First Act’’. reenacted into law effective for fiscal year (b) TABLE OF CONTENTS.—The table of con- up hospitalized, in nursing homes, or 2005. Part C shall expire at the end of fiscal tents for this Act is as follows: dead. year 2015.’’. Sec. 1. Short title; table of contents. Senator DAYTON’s legislation re- SEC. 5. RECONCILIATION FOR DEFICIT REDUC- Sec. 2. Findings. verses this cruel provision and allows TION IN THE SENATE. TITLE I—TITLE X OF PUBLIC HEALTH (a) IN GENERAL.—It shall not be in order in States to delay implementing the re- SERVICE ACT the Senate to consider under the expedited quirement that the new Medicare pro- Sec. 101. Short title. visions must immediately supplant procedures applicable to reconciliation in sections 305 and 310 of the Congressional Sec. 102. Authorization of appropriations. State Medicaid programs for the poor- Budget Act of 1974 any bill, resolution, TITLE II—FAMILY PLANNING STATE est of the poor. amendment, amendment between Houses, EMPOWERMENT Congress should be helping seniors motion, or conference report that increases Sec. 201. Short title. with the burden of high drug costs, not the deficit in the first fiscal year covered by Sec. 202. State option to provide family allowing a right wing agenda to de- the most recently adopted concurrent resolu- planning services and supplies stroy the guarantee of affordable tion on the budget, the period of the first 5 to additional low-income indi- health care that America’s seniors de- fiscal years covered by the most recently viduals. adopted concurrent resolution on the budget, serve and expect. Sec. 203. State option to extend the period of or the period of the 5 fiscal years following eligibility for provision of fam- That’s why Senator DAYTON and Sen- the first 5 fiscal years covered by the most ily planning services and sup- ator REID have introduced this needed recently adopted concurrent resolution on plies. legislation, and I urge my colleagues to the budget. TITLE III—EQUITY IN PRESCRIPTION IN- support it. (b) BUDGET RESOLUTION.—It shall not be in SURANCE AND CONTRACEPTIVE COV- order in the Senate to consider pursuant to ERAGE By Mr. CONRAD (for himself, Mr. sections 301, 305, or 310 of the Congressional Budget Act of 1974 pertaining to concurrent Sec. 301. Short title. REID, Mr. FEINGOLD, Ms. MIKUL- Sec. 302. Amendments to Employee Retire- SKI, Ms. STABENOW, Mr. INOUYE, resolutions on the budget any resolution, concurrent resolution, amendment, amend- ment Income Security Act of Mr. LEAHY, Mr. SALAZAR, Mr. ment between the Houses, motion, or con- 1974. Sec. 303. Amendments to Public Health ROCKEFELLER, Mr. SCHUMER, ference report that contains any reconcili- Service Act relating to the Mrs. FEINSTEIN, Mr. DAYTON, ation directive that would increase the def- Mr. DODD, and Mrs. CLINTON): icit in the first fiscal year covered by the group market. Sec. 304. Amendment to Public Health Serv- S. 19. A bill to reduce budget deficits most recently adopted concurrent resolution ice Act relating to the indi- on the budget, the period of the first 5 fiscal by restoring budget enforcement and vidual market. strengthening fiscal responsibility; to years covered by the most recently adopted concurrent resolution on the budget, or the TITLE IV—EMERGENCY CONTRACEPTION the Committee on the Budget. EDUCATION AND INFORMATION Mr. CONRAD. Mr. President, I ask period of the 5 fiscal years following the first 5 fiscal years covered by the most recently Sec. 401. Short title. unanimous consent that the text of the adopted concurrent resolution on the budget. Sec. 402. Emergency contraception edu- bill be printed in the RECORD. (c) SUPERMAJORITY WAIVER AND APPEAL.— cation and information pro- There being no objection, the bill was This section may be waived or suspended in grams. ordered to be printed in the RECORD, as the Senate only by an affirmative vote of 3⁄5 TITLE V—COMPASSIONATE ASSISTANCE follows: of the Members, duly chosen and sworn. An FOR RAPE EMERGENCIES affirmative vote of 3⁄5 of the Members of the S. 19 Sec. 501. Short title. Senate, duly chosen and sworn, shall be re- Be it enacted by the Senate and House of Rep- Sec. 502. Survivors of sexual assault; provi- quired in the Senate to sustain an appeal of resentatives of the United States of America in sion by hospitals of emergency the ruling of the Chair on a point of order contraceptives without charge. Congress assembled, raised under this section. SECTION 1. SHORT TITLE. TITLE VI—TEENAGE PREGNANCY SEC. 6. SENATE PAYGO RULE. This Act may be cited as the ‘‘Fiscal Re- PREVENTION (a) IN GENERAL.—Section 505(a)(5)(A) of H. sponsibility for a Sound Future Act’’. Con. Res. 95 (108th Congress) is amended by Sec. 601. Short title. SEC. 2. EXTENSION OF THE DISCRETIONARY striking ‘‘as adjusted for any changes in rev- Sec. 602. Teenage pregnancy prevention. SPENDING CAPS. enues or direct spending assumed by such TITLE VII—ACCURACY OF (a) IN GENERAL.—Section 251(c) of the Bal- resolution’’. CONTRACEPTIVE INFORMATION anced Budget and Emergency Deficit Control (b) EXPIRATION DATE.—Section 505(e) of H. Act of 1985 (2 U.S.C. 901(c)) is amended to Sec. 701. Short title. Con. Res. 95 (108th Congress) is amended by Sec. 702. Accuracy of contraceptive informa- read as follows: striking ‘‘2008’’ and inserting ‘‘2015’’. ‘‘(c) DISCRETIONARY SPENDING LIMIT.—As tion. used in this part, the term ‘discretionary By Mr. REID (for himself, Mrs. SEC. 2. FINDINGS. spending limit’ means, with respect to fiscal The Congress finds as follows: MURRAY, Mr. SCHUMER, Mr. year 2005— (1) Although the Centers for Disease Con- ‘‘(1) for the discretionary category: CORZINE, Mr. LAUTENBERG, Mrs. trol and Prevention (referred to in this sec- $836,268,000,000 in new budget authority and CLINTON, Mr. KERRY, Mrs. FEIN- tion as the ‘‘CDC’’) included family planning $895,966,000,000 in outlays; STEIN, Ms. CANTWELL, Mr. HAR- in its published list of the Ten Great Public ‘‘(2) for the highway category: KIN, Ms. MIKULSKI, Mr. INOUYE, Health Achievements in the 20th Century, $31,761,000,000 in outlays; and Mr. AKAKA, Mr. LEVIN, Mr. KEN- the United States still has one of the highest ‘‘(3) for the mass transit category: NEDY, Mr. LEAHY, Mr. WYDEN, rates of unintended pregnancies among in- dustrialized nations. $956,000,000 in new budget authority and and Ms. STABENOW): $6,748,000,000 in outlays; (2) Each year, 3,000,000 pregnancies, nearly S. 20. A bill to expand access to pre- half of all pregnancies, in the United States as adjusted in strict conformance with sub- ventive health care services that help section (b).’’. are unintended, and nearly half of unin- (b) COMMITMENT OF THE SENATE.—Congress reduce unintended pregnancy, reduce tended pregnancies end in abortion. should enact a limit on total discretionary the number of abortions, and improve (3) In 2002, 34,000,000 women-half of all spending for fiscal year 2006. access to women’s health care; to the women of reproductive age (ages 15-44)-were SEC. 3. EXTENSION OF PAY-AS-YOU-GO REQUIRE- Committee on Health, Education, in need of contraceptive services and sup- MENT. Labor, and Pensions. plies to help prevent unintended pregnancy, Section 252 of the Balanced Budget and Mr. REID. Mr. President, I ask unan- and half of those were in need of public sup- Emergency Deficit Control Act of 1985 is imous consent that the text of the bill port for such care. amended— (4) The United States also has the highest be printed in the RECORD. (1) in subsection (a), by striking ‘‘enacted There being no objection, the bill was rate of infection with sexually transmitted before October 1, 2002’’; and diseases of any industrialized country. In (2) in subsection (b), by striking ‘‘enacted ordered to be printed in the RECORD, as 2003 there were approximately 19,000,000 new before October 1, 2002,’’. follows: cases of sexually transmitted diseases. Ac- SEC. 4. EXTENSION OF BUDGET ENFORCEMENT S. 20 cording to the CDC (November 2004), these THROUGH 2015. Be it enacted by the Senate and House of Rep- sexually transmitted diseases impose a tre- Section 275 of the Balanced Budget and resentatives of the United States of America in mendous economic burden with direct med- Emergency Deficit Control Act of 1985 (2 Congress assembled, ical costs as high as $15,500,000,000 per year.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00104 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S211 (5) Increasing access to family planning putting many women at risk of losing cov- A December 2004 review of federally-funded services will improve women’s health and re- erage for family planning services. abstinence-only programs by the United duce the rates of unintended pregnancy, (18) In addition, eligibility for Medicaid in States House of Representatives Committee abortion, and infection with sexually trans- many States is severely restricted leaving on Government Reform (Minority Staff) mitted diseases. Contraceptive use saves family planning services financially out of found that many federally funded absti- public health dollars. Every dollar spent on reach for many poor women. Many States nence-only program curricula distort public providing family planning services saves an have demonstrated tremendous success with health data and misrepresent the effective- estimated $3 in expenditures for pregnancy- Medicaid family planning waivers that allow ness of contraception. Information on the ef- related and newborn care for Medicaid alone. them to expand access to Medicaid family fectiveness of condoms, in preventing preg- (6) Contraception is basic health care that planning services. However, the administra- nancy and sexually transmitted diseases, in- improves the health of women and children tive burden of applying for a waiver poses a cluding HIV, was often highly inaccurate. by enabling women to plan and space births. significant barrier to States that would like TITLE I—TITLE X OF PUBLIC HEALTH (7) Women experiencing unintended preg- to expand their coverage of family planning SERVICE ACT programs through Medicaid. nancy are at greater risk for physical abuse SEC. 101. SHORT TITLE. (19) As of January of 2005, 21 States offered and women having closely spaced births are This Act may be cited as the ‘‘Title X expanded family planning benefits as a re- at greater risk of maternal death. Family Planning Services Act of 2005’’. sult of Medicaid family planning waivers. (8) The child born from an unintended SEC. 102. AUTHORIZATION OF APPROPRIATIONS. pregnancy is at greater risk of low birth The cost-effectiveness of these waivers was affirmed by a recent evaluation funded by For the purpose of making grants and con- weight, dying in the first year of life, being the Centers for Medicare & Medicaid. This tracts under section 1001 of the Public abused, and not receiving sufficient re- evaluation of six waivers found that all such Health Service Act, there are authorized to sources for healthy development. programs resulted in significant savings to be appropriated $643,000,000 for fiscal year (9) The ability to control fertility also al- both the Federal and State governments. 2006, and such sums as may be necessary for lows couples to achieve economic stability Moreover, the researchers found measurable each subsequent fiscal year. by facilitating greater educational achieve- reductions in unintended pregnancy. TITLE II—FAMILY PLANNING STATE ment and participation in the workforce. (20) Although employer-sponsored health EMPOWERMENT (10) The average American woman desires plans have improved coverage of contracep- SEC. 201. SHORT TITLE. two children and spends five years of her life tive services and supplies, largely in re- This Act may be cited as the ‘‘Family pregnant or trying to get pregnant and sponse to State contraceptive coverage laws, Planning State Empowerment Act’’. roughly 30 years trying to prevent preg- there is still significant room for improve- SEC. 202. STATE OPTION TO PROVIDE FAMILY nancy. Without contraception, a sexually ac- ment. The ongoing lack of coverage in health PLANNING SERVICES AND SUPPLIES tive woman has an 85 percent chance of be- insurance plans, particularly in self-insured TO ADDITIONAL LOW-INCOME INDI- coming pregnant within a year. and individual plans, continues to place ef- VIDUALS. (11) The percentage of sexually active fective forms of contraception beyond the fi- (a) IN GENERAL.—Title XIX of the Social women ages 15 through 44 who were not nancial reach of many women. Security Act (42 U.S.C. 1396 et seq.) is using contraception increased from 5.4 per- (21) Including contraceptive coverage in amended— cent to 7.4 percent in 2002, an increase of 37 private health care plans saves employers (1) by redesignating section 1936 as section percent, according to the CDC. This rep- money. Not covering contraceptives in em- 1937; and resents an apparent increase of 1,430,000 ployee health plans costs employers 15 to 17 (2) by inserting after section 1935 the fol- women and could raise the rate of unin- percent more than providing such coverage. lowing: tended pregnancy. (22) Approved for use by the Food and Drug ‘‘STATE OPTION TO PROVIDE FAMILY PLANNING (12) Many poor and low-income women can- Administration, emergency contraception is SERVICES AND SUPPLIES TO ADDITIONAL LOW- not afford to purchase contraceptive services a safe and effective way to prevent unin- INCOME INDIVIDUALS and supplies on their own. 12,100,000 or 20 per- tended pregnancy after unprotected sex. It is ‘‘SEC. 1936. cent of all women ages 15 through 24 were estimated that the use of emergency contra- ‘‘(a) IN GENERAL.—A State may elect uninsured in 2002, and that proportion has in- ception could cut the number of unintended (through a State plan amendment) to make creased by 10 percent since 1999. pregnancies in half, thereby reducing the medical assistance described in section (13) Public health programs like Medicaid need for abortion. New research confirms 1905(a)(4)(C) available to any individual not and title X (of the Public Health Service that easier access to emergency contracep- otherwise eligible for such assistance— Act), the national family planning program, tives does not increase sexual risk-taking or ‘‘(1) whose family income does not exceed provide high-quality family planning serv- sexually transmitted diseases. an income level (specified by the State) that ices and other preventive health care to (23) In 2000, 51,000 abortions were prevented does not exceed the greatest of— underinsured or uninsured individuals who by the use of emergency contraception. In- ‘‘(A) 200 percent of the income official pov- may otherwise lack access to health care. creased use of emergency contraception ac- erty line (as defined by the Office of Manage- (14) Medicaid is the single largest source of counted for up to 43 percent of the total de- ment and Budget, and revised annually in ac- public funding for family planning services cline in abortions between 1994 and 2000. cordance with section 673(2) of the Commu- and HIV/AIDS care in the United States. (24) A February 2004 CDC study of declining nity Services Block Grant Act) applicable to Half of all public dollars spent on contracep- birth and pregnancy rates among teens con- a family of the size involved; tive services and supplies in the United cluded that the reduction in teen pregnancy ‘‘(B) in the case of a State that has in ef- States are provided through Medicaid and between 1991 and 2001 suggests that increased fect (as of the date of the enactment of this approximately 5,500,000 women of reproduc- abstinence and increased use of contracep- section) a waiver under section 1115 to pro- tive age-nearly one in 10 women between the tives were equally responsible for the de- vide such medical assistance to individuals ages of 15 and 44-rely on Medicaid for their cline. As such, it is critically important that based on their income level (expressed as a basic health care needs. teens receive accurate, unbiased information percent of the poverty line), the eligibility (15) Each year, title X services enable about contraception. income level as provided under such waiver; Americans to prevent approximately 1,000,000 (25) Thirteen percent of all teens give birth or unintended pregnancies, and one in three before age 20. 88 percent of births to teens ‘‘(C) the eligibility income level (expressed women of reproductive age who obtains test- age 17 or younger were unintended. 24 per- as a percent of such poverty line) that has ing or treatment for sexually transmitted cent of Hispanic females gave birth before been specified under the plan (including diseases does so at a title X-funded clinic. In the age of 20. (CDC, December 2004). under section 1902(r)(2)), for eligibility of 2003, title X-funded clinics provided 2,800,000 (26) The American Medical Association, pregnant women for medical assistance; and Pap tests, 5,100,000 sexually transmitted dis- the American Nurses Association, the Amer- ‘‘(2) at the option of the State, whose re- ease tests, and 526,000 HIV tests. ican Academy of Pediatrics, the American sources do not exceed a resource level speci- (16) The increasing number of uninsured, College of Obstetricians and Gynecologists, fied by the State, which level is not more re- stagnant funding, health care inflation, new the American Public Health Association, and strictive than the resource level applicable and expensive contraceptive technologies, the Society for Adolescent Medicine, support under the waiver described in paragraph and improved but expensive screening and responsible sexuality education that in- (1)(B) or to pregnant women under paragraph treatment for cervical cancer and sexually cludes information about both abstinence (1)(C). transmitted diseases, have diminished the and contraception. ‘‘(b) FLEXIBILITY.—A State may exercise ability of title X funded clinics to ade- (27) Teens who receive sex education that the authority under subsection (a) with re- quately serve all those in need. Taking infla- includes discussion of contraception are spect to one or more classes of individuals tion into account, funding for the title X more likely than those who receive absti- described in such subsection.’’. program declined by 58 percent between 1980 nence-only messages to delay sex and to (b) CONFORMING AMENDMENT.—Section and 2003. have fewer partners and use contraceptives 1905(a) of such Act (42 U.S.C. 1396d(a)) is (17) While Medicaid remains the largest when they do become sexually active. amended, in the matter before paragraph source of subsidized family planning serv- (28) Government-funded abstinence only (1)— ices, States are facing significant budgetary programs are precluded from discussing con- (1) by striking ‘‘and’’ at the end of clause pressures to cut their Medicaid programs, traception except to talk about failure rates. (xii);

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00105 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S212 CONGRESSIONAL RECORD — SENATE January 24, 2005 (2) by adding ‘‘and’’ at the end of clause dividual to accept less than the minimum days after the first day of the first plan year (xiii); and protections available under this section; in which such requirements apply. (3) by inserting after clause (xiii) the fol- ‘‘(3) penalize or otherwise reduce or limit ‘‘(e) PREEMPTION.—Nothing in this section lowing new clause: the reimbursement of a health care profes- shall be construed to preempt any provision ‘‘(xiv) individuals described in section 1935, sional because such professional prescribed of State law to the extent that such State but only with respect to items and services contraceptive drugs or devices, or provided law establishes, implements, or continues in described in paragraph (4)(C),’’. contraceptive services, described in sub- effect any standard or requirement that pro- (c) EFFECTIVE DATE.—The amendments section (a), in accordance with this section; vides coverage or protections for partici- made by this section apply to medical assist- or pants or beneficiaries that are greater than ance provided on and after October 1, 2005. ‘‘(4) provide incentives (monetary or other- the coverage or protections provided under SEC. 203. STATE OPTION TO EXTEND THE PERIOD wise) to a health care professional to induce this section. OF ELIGIBILITY FOR PROVISION OF such professional to withhold from a covered ‘‘(f) DEFINITION.—In this section, the term FAMILY PLANNING SERVICES AND individual contraceptive drugs or devices, or ‘outpatient contraceptive services’ means SUPPLIES. contraceptive services, described in sub- consultations, examinations, procedures, and (a) IN GENERAL.—Section 1902(e) of the So- section (a). medical services, provided on an outpatient cial Security Act (42 U.S.C. 1396a(e)) is basis and related to the use of contraceptive ‘‘(c) RULES OF CONSTRUCTION.— amended by adding at the end the following methods (including natural family planning) ‘‘(1) IN GENERAL.—Nothing in this section new paragraph: to prevent an unintended pregnancy.’’. shall be construed— ‘‘(13) At the option of a State, the State (b) CLERICAL AMENDMENT.—The table of plan may provide that, in the case of an indi- ‘‘(A) as preventing a group health plan and contents in section 1 of the Employee Retire- vidual who was eligible for medical assist- a health insurance issuer providing health ment Income Security Act of 1974 (29 U.S.C. ance described in section 1905(a)(4)(C), but insurance coverage in connection with a 1001) is amended by inserting after the item who no longer qualifies for such assistance group health plan from imposing relating to section 713 the following: deductibles, coinsurance, or other cost-shar- because of an increase in income or resources ‘‘Sec. 714. Standards relating to benefits for ing or limitations in relation to— or because of the expiration of a post-partum contraceptives.’’. ‘‘(i) benefits for contraceptive drugs under period, the individual may remain eligible (c) EFFECTIVE DATE.—The amendments for such assistance for such period as the the plan or coverage, except that such a de- ductible, coinsurance, or other cost-sharing made by this section shall apply with respect State may specify, but the period of ex- to plan years beginning on or after January tended eligibility under this paragraph shall or limitation for any such drug shall be con- sistent with those imposed for other out- 1, 2006. not exceed a continuous period of 24 months SEC. 303. AMENDMENTS TO PUBLIC HEALTH for any individual. The State may apply the patient prescription drugs otherwise covered under the plan or coverage; SERVICE ACT RELATING TO THE previous sentence to one or more classes of GROUP MARKET. ‘‘(ii) benefits for contraceptive devices individuals and may vary the period of ex- (a) IN GENERAL.—Subpart 2 of part A of tended eligibility with respect to different under the plan or coverage, except that such title XXVII of the Public Health Service Act classes of individuals.’’. a deductible, coinsurance, or other cost-shar- (42 U.S.C. 300gg–4 et seq.) is amended by add- (b) EFFECTIVE DATE.—The amendments ing or limitation for any such device shall be ing at the end the following: consistent with those imposed for other out- made by subsection (a) apply to medical as- ‘‘SEC. 2707. STANDARDS RELATING TO BENEFITS sistance provided on and after October 1, patient prescription devices otherwise cov- FOR CONTRACEPTIVES. 2005. ered under the plan or coverage; and ‘‘(a) REQUIREMENTS FOR COVERAGE.—A TITLE III—EQUITY IN PRESCRIPTION IN- ‘‘(iii) benefits for outpatient contraceptive group health plan, and a health insurance SURANCE AND CONTRACEPTIVE COV- services under the plan or coverage, except issuer providing health insurance coverage ERAGE that such a deductible, coinsurance, or other in connection with a group health plan, may cost-sharing or limitation for any such serv- SEC. 301. SHORT TITLE. not— ice shall be consistent with those imposed This Act may be cited as the ‘‘Equity in ‘‘(1) exclude or restrict benefits for pre- for other outpatient health care services oth- Prescription Insurance and Contraceptive scription contraceptive drugs or devices ap- erwise covered under the plan or coverage; Coverage Act’’. proved by the Food and Drug Administra- ‘‘(B) as requiring a group health plan and a tion, or generic equivalents approved as sub- SEC. 302. AMENDMENTS TO EMPLOYEE RETIRE- health insurance issuer providing health in- MENT INCOME SECURITY ACT OF stitutable by the Food and Drug Administra- 1974. surance coverage in connection with a group tion, if such plan or coverage provides bene- (a) IN GENERAL.—Subpart B of part 7 of health plan to cover experimental or inves- fits for other outpatient prescription drugs subtitle B of title I of the Employee Retire- tigational contraceptive drugs or devices, or or devices; or ment Income Security Act of 1974 (29 U.S.C. experimental or investigational contracep- ‘‘(2) exclude or restrict benefits for out- 1185 et seq.) is amended by adding at the end tive services, described in subsection (a), ex- patient contraceptive services if such plan or the following: cept to the extent that the plan or issuer coverage provides benefits for other out- ‘‘SEC. 714. STANDARDS RELATING TO BENEFITS provides coverage for other experimental or patient services provided by a health care FOR CONTRACEPTIVES. investigational outpatient prescription drugs professional (referred to in this section as ‘‘(a) REQUIREMENTS FOR COVERAGE.—A or devices, or experimental or investiga- ‘outpatient health care services’). group health plan, and a health insurance tional outpatient health care services; or ‘‘(b) PROHIBITIONS.—A group health plan, issuer providing health insurance coverage ‘‘(C) as modifying, diminishing, or limiting and a health insurance issuer providing in connection with a group health plan, may the rights or protections of an individual health insurance coverage in connection not— under any other Federal law. with a group health plan, may not— ‘‘(1) exclude or restrict benefits for pre- ‘‘(2) LIMITATIONS.—As used in paragraph ‘‘(1) deny to an individual eligibility, or scription contraceptive drugs or devices ap- (1), the term ‘limitation’ includes— continued eligibility, to enroll or to renew proved by the Food and Drug Administra- ‘‘(A) in the case of a contraceptive drug or coverage under the terms of the plan because tion, or generic equivalents approved as sub- device, restricting the type of health care of the individual’s or enrollee’s use or poten- stitutable by the Food and Drug Administra- professionals that may prescribe such drugs tial use of items or services that are covered tion, if such plan or coverage provides bene- or devices, utilization review provisions, and in accordance with the requirements of this fits for other outpatient prescription drugs limits on the volume of prescription drugs or section; or devices; or devices that may be obtained on the basis of ‘‘(2) provide monetary payments or rebates ‘‘(2) exclude or restrict benefits for out- a single consultation with a professional; or to a covered individual to encourage such in- patient contraceptive services if such plan or ‘‘(B) in the case of an outpatient contra- dividual to accept less than the minimum coverage provides benefits for other out- ceptive service, restricting the type of protections available under this section; patient services provided by a health care health care professionals that may provide ‘‘(3) penalize or otherwise reduce or limit professional (referred to in this section as such services, utilization review provisions, the reimbursement of a health care profes- ‘outpatient health care services’). requirements relating to second opinions sional because such professional prescribed ‘‘(b) PROHIBITIONS.—A group health plan, prior to the coverage of such services, and contraceptive drugs or devices, or provided and a health insurance issuer providing requirements relating to preauthorizations contraceptive services, described in sub- health insurance coverage in connection prior to the coverage of such services. section (a), in accordance with this section; with a group health plan, may not— ‘‘(d) NOTICE UNDER GROUP HEALTH PLAN.— or ‘‘(1) deny to an individual eligibility, or The imposition of the requirements of this ‘‘(4) provide incentives (monetary or other- continued eligibility, to enroll or to renew section shall be treated as a material modi- wise) to a health care professional to induce coverage under the terms of the plan because fication in the terms of the plan described in such professional to withhold from covered of the individual’s or enrollee’s use or poten- section 102(a)(1), for purposes of assuring no- individual contraceptive drugs or devices, or tial use of items or services that are covered tice of such requirements under the plan, ex- contraceptive services, described in sub- in accordance with the requirements of this cept that the summary description required section (a). section; to be provided under the last sentence of sec- ‘‘(c) RULES OF CONSTRUCTION.— ‘‘(2) provide monetary payments or rebates tion 104(b)(1) with respect to such modifica- ‘‘(1) IN GENERAL.—Nothing in this section to a covered individual to encourage such in- tion shall be provided by not later than 60 shall be construed—

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00106 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S213 ‘‘(A) as preventing a group health plan and SEC. 304. AMENDMENT TO PUBLIC HEALTH SERV- consultation with major medical and public a health insurance issuer providing health ICE ACT RELATING TO THE INDI- health organizations, shall develop and dis- insurance coverage in connection with a VIDUAL MARKET. seminate to health care providers informa- group health plan from imposing (a) IN GENERAL.—Part B of title XXVII of tion on emergency contraception. deductibles, coinsurance, or other cost-shar- the Public Health Service Act (42 U.S.C. (2) INFORMATION.—The information dis- ing or limitations in relation to— 300gg–41 et seq.) is amended— seminated under paragraph (1) shall include, ‘‘(i) benefits for contraceptive drugs under (1) by redesignating the first subpart 3 (re- at a minimum— the plan or coverage, except that such a de- lating to other requirements) as subpart 2; (A) information describing the use, safety, ductible, coinsurance, or other cost-sharing and efficacy and availability of emergency con- or limitation for any such drug shall be con- (2) by adding at the end of subpart 2 the traception; sistent with those imposed for other out- following: (B) a recommendation regarding the use of patient prescription drugs otherwise covered ‘‘SEC. 2753. STANDARDS RELATING TO BENEFITS such contraception in appropriate cases; and under the plan or coverage; FOR CONTRACEPTIVES. (C) information explaining how to obtain ‘‘(ii) benefits for contraceptive devices ‘‘The provisions of section 2707 shall apply copies of the information developed under under the plan or coverage, except that such to health insurance coverage offered by a subsection (b), for distribution to the pa- a deductible, coinsurance, or other cost-shar- health insurance issuer in the individual tients of the providers. ing or limitation for any such device shall be market in the same manner as they apply to (d) AUTHORIZATION OF APPROPRIATIONS.— consistent with those imposed for other out- health insurance coverage offered by a There is authorized to be appropriated to patient prescription devices otherwise cov- health insurance issuer in connection with a carry out this section $10,000,000 for each of ered under the plan or coverage; and group health plan in the small or large group the fiscal years 2006 through 2010. ‘‘(iii) benefits for outpatient contraceptive market.’’. TITLE V—COMPASSIONATE ASSISTANCE (b) EFFECTIVE DATE.—The amendment services under the plan or coverage, except FOR RAPE EMERGENCIES that such a deductible, coinsurance, or other made by this section shall apply with respect SEC. 501. SHORT TITLE. cost-sharing or limitation for any such serv- to health insurance coverage offered, sold, This Act may be cited as the ‘‘Compas- ice shall be consistent with those imposed issued, renewed, in effect, or operated in the sionate Assistance for Rape Emergencies for other outpatient health care services oth- individual market on or after January 1, Act’’. erwise covered under the plan or coverage; 2006. ‘‘(B) as requiring a group health plan and a TITLE IV—EMERGENCY CONTRACEPTION SEC. 502. SURVIVORS OF SEXUAL ASSAULT; PRO- VISION BY HOSPITALS OF EMER- health insurance issuer providing health in- EDUCATION AND INFORMATION GENCY CONTRACEPTIVES WITHOUT surance coverage in connection with a group SEC. 401. SHORT TITLE. CHARGE. health plan to cover experimental or inves- This Act may be cited as the ‘‘Emergency (a) IN GENERAL.—Federal funds may not be tigational contraceptive drugs or devices, or Contraception Education Act’’. provided to a hospital under any health-re- experimental or investigational contracep- SEC. 402. EMERGENCY CONTRACEPTION EDU- lated program, unless the hospital meets the tive services, described in subsection (a), ex- CATION AND INFORMATION PRO- conditions specified in subsection (b) in the cept to the extent that the plan or issuer GRAMS. case of— provides coverage for other experimental or (a) DEFINITIONS.—For purposes of this sec- (1) any woman who presents at the hospital investigational outpatient prescription drugs tion: and states that she is a victim of sexual as- or devices, or experimental or investiga- (1) EMERGENCY CONTRACEPTION.—The term sault, or is accompanied by someone who tional outpatient health care services; or ‘‘emergency contraception’’ means a drug or states she is a victim of sexual assault; and ‘‘(C) as modifying, diminishing, or limiting device (as the terms are defined in section (2) any woman who presents at the hospital the rights or protections of an individual 201 of the Federal Food, Drug, and Cosmetic whom hospital personnel have reason to be- under any other Federal law. Act (21 U.S.C. 321)) or a drug regimen that lieve is a victim of sexual assault. ‘‘(2) LIMITATIONS.—As used in paragraph is— (b) ASSISTANCE FOR VICTIMS.—The condi- (1), the term ‘limitation’ includes— (A) used after sexual relations; tions specified in this subsection regarding a ‘‘(A) in the case of a contraceptive drug or (B) prevents pregnancy, by preventing ovu- hospital and a woman described in sub- device, restricting the type of health care lation, fertilization of an egg, or implanta- section (a) are as follows: professionals that may prescribe such drugs tion of an egg in a uterus; and (1) The hospital promptly provides the or devices, utilization review provisions, and (C) approved by the Food and Drug Admin- woman with medically and factually accu- limits on the volume of prescription drugs or istration. rate and unbiased written and oral informa- devices that may be obtained on the basis of (2) HEALTH CARE PROVIDER.—The term tion about emergency contraception, includ- a single consultation with a professional; or ‘‘health care provider’’ means an individual ing information explaining that— ‘‘(B) in the case of an outpatient contra- who is licensed or certified under State law (A) emergency contraception does not ceptive service, restricting the type of to provide health care services and who is cause an abortion; and health care professionals that may provide operating within the scope of such license. (B) emergency contraception is effective in such services, utilization review provisions, (3) INSTITUTION OF HIGHER EDUCATION.—The most cases in preventing pregnancy after un- requirements relating to second opinions term ‘‘institution of higher education’’ has protected sex. prior to the coverage of such services, and the same meaning given such term in section (2) The hospital promptly offers emergency requirements relating to preauthorizations 1201(a) of the Higher Education Act of 1965 contraception to the woman, and promptly prior to the coverage of such services. (20 U.S.C. 1141(a)). provides such contraception to her on her re- ‘‘(d) NOTICE.—A group health plan under (4) SECRETARY.—The term ‘‘Secretary’’ quest. this part shall comply with the notice re- means the Secretary of Health and Human (3) The information provided pursuant to quirement under section 714(d) of the Em- Services. paragraph (1) is in clear and concise lan- ployee Retirement Income Security Act of (b) EMERGENCY CONTRACEPTION PUBLIC guage, is readily comprehensible, and meets 1974 with respect to the requirements of this EDUCATION PROGRAM.— such conditions regarding the provision of section as if such section applied to such (1) IN GENERAL.—The Secretary, acting the information in languages other than plan. through the Director of the Centers for Dis- English as the Secretary may establish. ease Control and Prevention, shall develop (4) The services described in paragraphs (1) ‘‘(e) PREEMPTION.—Nothing in this section and disseminate to the public information on through (3) are not denied because of the in- shall be construed to preempt any provision emergency contraception. ability of the woman or her family to pay for of State law to the extent that such State (2) DISSEMINATION.—The Secretary may the services. law establishes, implements, or continues in disseminate information under paragraph (1) (c) DEFINITIONS.—For purposes of this sec- effect any standard or requirement that pro- directly or through arrangements with non- tion: vides coverage or protections for enrollees profit organizations, consumer groups, insti- (1) The term ‘‘emergency contraception’’ that are greater than the coverage or protec- tutions of higher education, Federal, State, means a drug, drug regimen, or device that tions provided under this section. or local agencies, clinics and the media. is— NFORMATION (A) used postcoitally; ‘‘(f) DEFINITION.—In this section, the term (3) I .—The information dis- ‘outpatient contraceptive services’ means seminated under paragraph (1) shall include, (B) prevents pregnancy by delaying ovula- consultations, examinations, procedures, and at a minimum, a description of emergency tion, preventing fertilization of an egg, or preventing implantation of an egg in a uter- medical services, provided on an outpatient contraception, and an explanation of the use, safety, efficacy, and availability of such con- us; and basis and related to the use of contraceptive traception. (C) is approved by the Food and Drug Ad- methods (including natural family planning) (c) EMERGENCY CONTRACEPTION INFORMA- ministration. to prevent an unintended pregnancy.’’. TION PROGRAM FOR HEALTH CARE PRO- (2) The term ‘‘hospital’’ has the meanings (b) EFFECTIVE DATE.—The amendments VIDERS.— given such term in title XVIII of the Social made by this section shall apply with respect (1) IN GENERAL.—The Secretary, acting Security Act, including the meaning applica- to group health plans for plan years begin- through the Administrator of the Health Re- ble in such title for purposes of making pay- ning on or after January 1, 2006. sources and Services Administration and in ments for emergency services to hospitals

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00107 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S214 CONGRESSIONAL RECORD — SENATE January 24, 2005 that do not have agreements in effect under the Maternal and Child Health Block Grant, S. 24. A bill to establish an emer- such title. the Administration for Children and Fami- gency reserve fund to provide timely fi- (3) The term ‘‘Secretary’’ means the Sec- lies, the Adolescent Family Life Program, nancial assistance in response to do- retary of Health and Human Services. and any other program that uses the defini- mestic disasters and emergencies; to (4) The term ‘‘sexual assault’’ means coitus tion of ‘abstinence education’ found in sec- the Committee on the Budget. in which the woman involved does not con- tion 510(b) of the Social Security Act are in- sent or lacks the legal capacity to consent. eligible for funding. Mrs. HUTCHISON. Mr. President, (d) EFFECTIVE DATE; AGENCY CRITERIA.— ‘‘(g) APPLICATIONS.—Each entity seeking a over the past decade, Congress has ap- This section takes effect upon the expiration grant under this section shall submit an ap- proved over $46 billion in disaster relief of the 180-day period beginning on the date of plication to the Secretary at such time and and emergency spending. This is an av- enactment of this Act. Not later than 30 days in such manner as the Secretary may re- erage of $4.6 billion a year. The major- prior to the expiration of such period, the quire. ity of this funding—$34 billion—has Secretary shall publish in the Federal Reg- ‘‘(h) MATCHING FUNDS.— been provided through supplemental ister criteria for carrying out this section. ‘‘(1) IN GENERAL.—The Secretary may not bills, not subject to the normal appro- award a grant to an applicant for a program TITLE VI—TEENAGE PREGNANCY priations process. PREVENTION under this section unless the applicant dem- onstrates that it will pay, from funds derived Supporters of supplemental spending SEC. 601. SHORT TITLE. from non-Federal sources, at least 25 percent suggest it provides Congress flexibility This title may be cited as the ‘‘Preventing of the cost of the program. to respond to emergencies and to prior- Teen Pregnancy Act’’. ‘‘(2) APPLICANT’S SHARE.—The applicant’s ities that did not receive the proper SEC. 602. TEENAGE PREGNANCY PREVENTION. share of the cost of a program shall be pro- consideration during the budget cycle. Part P of title III of the Public Health vided in cash or in kind. Service Act (42 U.S.C. 280g et seq.) is amend- While supplemental bills do offer flexi- ‘‘(i) SUPPLEMENTATION OF FUNDS.—An enti- bility, they are not always helpful for ed by inserting after section 399N the fol- ty that receives funds as a grant under this lowing section: fiscal responsibility. Millions of dollars section shall use the funds to supplement are put in emergency spending bills ‘‘SEC. 399N-1. TEENAGE PREGNANCY PREVEN- and not supplant funds that would otherwise TION GRANTS. be available to the entity for teenage preg- that should go through the regular ‘‘(a) AUTHORITY.—The Secretary may nancy prevention. budget process, adding more and more award on a competitive basis grants to pub- ‘‘(j) EVALUATIONS.— to the bottom line. lic and private entities to establish or ex- ‘‘(1) IN GENERAL.—The Secretary shall— America is at a critical time—we pand teenage pregnancy prevention pro- ‘‘(A) conduct or provide for a rigorous eval- must be prepared to address domestic grams. uation of 10 percent of programs for which a emergencies without increasing the ‘‘(b) GRANT RECIPIENTS.—Grant recipients grant is awarded under this section; deficit or being forced to fund non- under this section may include State and ‘‘(B) collect basic data on each program for local not-for-profit coalitions working to emergency projects in order to release which a grant is awarded under this section; necessary funds. Supplemental spend- prevent teenage pregnancy, State, local, and and tribal agencies, schools, entities that provide ‘‘(C) upon completion of the evaluations ing circumvents budgetary enforce- afterschool programs, and community and referred to in subparagraph (A), submit to ment mechanisms and can lead law- faith-based groups. the Congress a report that includes a de- makers to under-fund programs in the ‘‘(c) PRIORITY.—In selecting grant recipi- tailed statement on the effectiveness of regular appropriations process, because ents under this section, the Secretary shall grants under this section. they know they ultimately can get give— ‘‘(2) COOPERATION BY GRANTEES.—Each ‘‘(1) highest priority to applicants seeking what is needed through a supple- grant recipient under this section shall pro- mental. assistance for programs targeting commu- vide such information and cooperation as nities or populations in which— Supplemental bills allocate funding may be required for an evaluation under for emergencies, and we have all wit- ‘‘(A) teenage pregnancy or birth rates are paragraph (1). nessed, firsthand, how a natural dis- higher than the corresponding State average; ‘‘(k) DEFINITION.—For purposes of this sec- or tion, the term ‘rigorous scientific research’ aster can impact a country severely. ‘‘(B) teenage pregnancy or birth rates are means based on a program evaluation that: Merely because something is unfore- increasing; and ‘‘(1) Measured impact on sexual or contra- seen does not mean we should not pre- ‘‘(2) priority to applicants seeking assist- ceptive behavior, pregnancy or childbearing. pare. Congress needs to plan in a man- ance for programs that— ‘‘(2) Employed an experimental or quasi- ner that is fiscally responsible and pro- ‘‘(A) will benefit underserved or at-risk experimental design with well-constructed populations such as young males or immi- cedurally transparent. and appropriate comparison groups. Today, I offer a bill to create an grant youths; or ‘‘(3) Had a sample size large enough (at ‘‘(B) will take advantage of other available emergency fund under the office of the least 100 in the combined treatment and con- Secretary of the Treasury, in an inter- resources and be coordinated with other pro- trol group) and a follow-up interval long grams that serve youth, such as workforce enough (at least six months) to draw valid est bearing account, containing 1.2 per- development and after school programs. conclusions about impact. cent of the annual non-defense domes- ‘‘(d) USE OF FUNDS.—Funds received by an ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.— tic spending, or roughly $4.6 billion. entity as a grant under this section shall be There are authorized to be appropriated to This will be America’s rainy day fund— used for programs that— carry out this section $20,000,000 for fiscal a savings account ready for almost any ‘‘(1) replicate or substantially incorporate year 2006, and such sums as may be necessary the elements of one or more teenage preg- potential unforeseen domestic emer- for each subsequent fiscal year. In addition, gencies. nancy prevention programs that have been there are authorized to be appropriated for proven (on the basis of rigorous scientific re- This account is not designed to elimi- evaluations under subsection (j) such sums nate the need for supplemental bills search) to delay sexual intercourse or sexual as may be necessary for fiscal year 2006 and activity, increase condom or contraceptive each subsequent fiscal year.’’. but rather lessen the need for them. use (without increasing sexual activity), or Last year, in supplemental spending reduce teenage pregnancy; and TITLE VII—ACCURACY OF alone, Congress spent $2.5 billion on CONTRACEPTIVE INFORMATION ‘‘(2) incorporate one or more of the fol- disaster relief in America. Domestic lowing strategies for preventing teenage SEC. 701. SHORT TITLE. discretionary supplemental bills en- This title may be cited as the ‘‘Truth in pregnancy: encouraging teenagers to delay acted in response to natural disasters, sexual activity; sex and HIV education; Contraception Act’’. such as hurricanes and earthquakes, interventions for sexually active teenagers; SEC. 702. ACCURACY OF CONTRACEPTIVE INFOR- preventive health services; youth develop- MATION. rose steadily through the 1990s. Federal ment programs; service learning programs; Notwithstanding any other provision of Emergency Management Agency, and outreach or media programs. law, any information concerning the use of a FEMA, was the second-largest recipi- ‘‘(e) COMPLETE INFORMATION.—Programs re- contraceptive provided through any feder- ent of supplemental spending during ceiving funds under this section that choose ally funded sex education, family life edu- the 1990s. Supplemental appropriations to provide information on HIV/AIDS or con- cation, abstinence education, comprehensive for ‘‘non-natural’’ disasters such as the traception or both must provide information health education, or character education Los Angeles riots in 1992 and the Okla- program shall be medically accurate and that is complete and medically accurate. homa City bombing in 1995 as well as ‘‘(f) RELATION TO ABSTINENCE-ONLY PRO- shall include health benefits and failure GRAMS.—Funds under this section are not in- rates relating to the use of such contracep- the September 11 terrorist attack have tended for use by abstinence-only education tive. also demanded quick and efficient programs. Abstinence-only education pro- funding. History is teaching us a les- grams that receive Federal funds through By Mrs. HUTCHISON: son; while we do not know what the

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00108 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S215 emergencies will be, we can feel certain This bill will also provide for tax re- local sales taxes was eliminated. This there will be something to which we lief for business-to-business trans- discriminated against those living in will need to respond. actions. These transactions, including States, such as my home State of Beyond the clear fiscal conservatism used-product transactions which have Texas, with no income taxes. It is im- we need, I believe this rainy day fund already been taxed, are not subject to portant to remember the lack of an in- would reduce the time it takes to re- the sales tax, thereby abrogating any come tax does not mean citizens in spond to emergencies by giving Con- double taxation. these States do not pay State taxes; gress a more efficient, less political Social Security and Medicare bene- revenues are simply collected dif- process. My bill would require the con- fits would remain untouched under the ferently. tingency fund to be expended before Fair Tax bill. There would be no finan- It is unfair to give citizens from some supplemental spending for domestic cial reductions to either one of these States a deduction for the revenue they disasters can be pursued, with the ex- vital programs. Instead, the source of provide their State and local govern- clusion of defense spending. the trust-fund revenue for these two ments, while not doing the same for As we seek to be more fiscally re- programs would be replaced simply by citizens from other States. Federal tax sponsible, our next step forward should sales-tax revenue instead of payroll-tax law should not treat people differently be this account, from which the funds revenue. on the basis of State residence and dif- we draw upon are planned for and set Lastly, under the Fair Tax Act, every fering tax collection methods, and it aside through the normal appropria- American would receive a monthly re- should not provide an incentive for tions process. Our current system regu- bate check equal to spending up to the States to establish income taxes over larly underfunds FEMA and other Federal poverty level according to the sales taxes. agencies for emergencies, and this Department of Health and Human This discrepancy had a significant should end. Services guidelines. This rebate would impact on Texas. According to the As we prepare for the future, it is my ensure that no American pays taxes on Texas Comptroller, the ability of tax- goal that we save and prepare for the the purchase of necessities. payers to deduct their sales taxes will vital needs of our people should there The Fair Tax creates a fairer, simpler lead to an additional $740 million stay- be a domestic emergency. Recent code that allows every American the ing in the hands of Texans each year, events worldwide demand we be fis- freedom to determine his or her own the creation of more than 16,500 new cally responsible and procedurally ca- priorities and opportunities. Ronald jobs, and the addition of $920 million in pable of this, our most important duty, Reagan once said, ‘‘I believe we really State economic activity. the protection and safe-keeping of the can, however, say that God did give Last year, we took an important step American people. mankind virtually unlimited gifts to by reinstating a sales tax deduction. As invent, produce and create. And for a result, everyone now has the oppor- By Mr. CHAMBLISS: that reason alone, it would be wrong tunity to deduct either their State and S. 25. A bill to promote freedom, fair- for governments to devise a tax struc- local income taxes or sales taxes. For ness, and economic opportunity by re- ture or economic system that sup- the 55 million of us in the 7 States with pealing the income tax and other taxes, presses and denies those gifts.’’ I a sales tax but no income tax, this abolishing the Internal Revenue Serv- couldn’t agree more. means the tax code no longer discrimi- ice, and enacting a national sales tax And as long as we continue to oper- nates against us. Unfortunately, the to be administered primarily by the ate under our current skewed Tax new deduction is only in effect for 2004 States; to the Committee on Finance. Code, we will continue to suppress and and 2005. We must act to prevent the Mr. CHAMBLISS. Mr. President, I deny these unlimited gifts to the inequity from returning. rise today to introduce the Fair Tax American people, who would otherwise The legislation I am offering today Act of 2005. This bill will promote free- thrive boundlessly under the Fair Tax. will fix this problem for good by mak- dom, fairness, and economic oppor- ing the State and local sales tax deduc- tunity by repealing the Federal income By Mrs. HUTCHISON (for herself, tion permanent. This will permanently tax and other taxes, abolishing the In- Mr. FRIST, Ms. CANTWELL, Mr. end the discrimination suffered by my ternal Revenue Service, and enacting a ENSIGN, Mr. ALEXANDER, and fellow Texans and citizens of other national sales tax. Mr. CORNYN): States who do not have the option of The Fair Tax, which offers a national S. 27. A bill to amend the Internal an income tax deduction. sales tax as the primary source of Fed- Revenue Code of 1986 to make perma- This legislation is about reestab- eral revenue, is a necessary piece of tax nent the deduction of State and local lishing equity to the tax code and de- reform that, should it pass, upon its in- general sales taxes; to the Committee fending the important principle of ception would eliminate our current on Finance. eliminating taxes on taxes. I hope my archaic and inefficient Tax Code and Mrs. HUTCHISON. Mr. President, I fellow Senators will support this effort. replace it with a simpler, fairer means am pleased to introduce a bill to per- I ask unanimous consent that the of collecting revenue. manently correct an injustice in the test of the bill be printed in the Our antiquated Tax Code was imple- tax code that has harmed citizens in RECORD. mented in 1913 and has since been many States of this great Nation. Ms. CANTWELL. Mr. President, modified numerous times. The Federal State and local governments have today I am joining my good friend the Tax Code in its present form is overly various alternatives for raising rev- Senator from Texas, (Mrs. HUTCHISON), complicated and desperately in need of enue. Some levy income taxes, some and the Senator from Tennessee, the an overhaul. We are well beyond recti- use sales taxes, and others use a com- Majority Leader, Mr. FRIST, in legisla- fying the unfairness in our current sys- bination of the two. The citizens who tion to permanently extend the State tem by tinkering around the edges. All pay State and local income taxes have sales tax deduction. This bill aims to Americans are in dire need of unbiased, been able to offset some of what they make permanent legislation that the sweeping tax reform—and the Fair Tax pay by receiving a deduction on their Congress passed and the President provides just that. federal taxes. Before 1986, taxpayers signed into law last year on October 22, The Fair Tax Act of 2005 would repeal also had the ability to deduct their 2004 as a provision of the JOBS Act. It the individual income tax, the cor- sales taxes. is a change to the tax code that I have porate income tax, capital gains taxes, The philosophy behind these deduc- worked to see enacted since coming to all payroll taxes, the self-employment tions is simple: people should not have the U.S. Senate, and one I want to tax and the estate and gift taxes in lieu to pay taxes on their taxes. The money maintain. of a 23 percent tax on the final sale of that people must give to one level of The JOBS Act reinstituted, for a pe- all goods and services. Elimination of government should not also be taxed riod of 2 years, the ability of taxpayers these inefficient taxing mechanisms by another level of government. to deduct State and local sales taxes will not only bring about equality Unfortunately, citizens of some just as they would State and local in- within in our tax system, it will also States were treated differently after come taxes. Residents of States such as bring about simplicity. 1986 when the deduction for State and Washington that do not have income

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00109 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S216 CONGRESSIONAL RECORD — SENATE January 24, 2005 taxes, but have State sales taxes, had cial security numbers, to establish astating, because that piece of infor- not been able to do this since the 1986. criminal penalties for such misuse, and mation has become a de facto universal Make no mistake about it: perma- for other purposes; to the Committee identifier in American society. nently extending the sales tax deduc- on the Judiciary. Despite the widespread use of Social tion is a tax cut for Washington State Mrs. FEINSTEN. Mr. President, I rise Security numbers, the General Ac- taxpayers. Such a cut will strengthen on behalf of myself and Senator LEAHY counting Office reported recently that our economy and fundamentally re- to again introduce legislation to pro- ‘‘No single federal law regulates the store basic tax fairness. tect one of Americans’ most valuable overall use or restricts the disclosure When the Federal income tax was but vulnerable assets: Social Security of SSNs by governments.’’ (Source: So- first imposed in 1913, Congress allowed numbers. This is the second Congress cial Security numbers: SSNs are Wide- taxpayers to deduct State and local in a row that I have introduced this ly Used by Government and Could be sales so they would not be taxed on legislation, to restrict the sale and dis- Better Protected, 2002 (Report Number once at the State level and then, again, play of Social Security numbers. GAO–02–691T) at page 5). As a result, at the Federal level in the same cal- We have just begun the New Year, the use of Social Security numbers is endar year. and unfortunately we can say with cer- regulated by an inconsistent and insuf- In 1986, after 74 years of precedent, tainty that it will be another year in ficient patchwork of state and federal this tax equity abruptly ended. Tax- which millions of Americans will be laws, that often leaves the numbers in payers from States without income victimized by identity theft, a crime so plain view of the whole world. taxes were given a raw deal when Con- often linked to unprotected Social Se- One recent book on privacy in the United States documents how far the gress made a budgetary squeeze play curity numbers. It is my hope that use of Social Security numbers has and ended the tax deduction for State Congress will finally approve this legis- spread beyond its original purpose, sales taxes. lation this year. For the benefit of all when they were created in 1936, of For States like Washington, where Californians and of all Americans, the tracking American workers’ earnings sales tax revenues are nearly 60 percent Senate needs to take this step, to stop and benefits. According to the book: of the State budget, the impact is im- those who would do us harm by taking ‘‘The SSN began to be used for military mense. The loss to Washington State our very identities. personnel, legally admitted aliens, taxpayers in 2004 alone, is estimated to The goal of this bill is straight- anyone receiving or applying for fed- be $500 million. forward—to get Social Security num- eral benefits, food stamps, school lunch Washington taxpayers waited 18 bers out of the public domain, so that program eligibility, draft registration, years to for the Federal government to identity thieves can’t get them. To- and federal loans. State and local gov- ward this goal, this bill will do the fol- correct the unique burden on them ernments, as well as private sector en- lowing: that amounts to requiring them to pay tities such as schools and banks, began The heart of this bill prohibits any- taxes twice on the same money. Now to use SSNs as well—for drivers’ li- one from selling or displaying an indi- that the burden has been lifted for 2 censes, birth certificates, blood dona- vidual’s Social Security number to the years, with thanks to this body and the tion, jury selection, worker’s com- general public without the individual’s President, Washington taxpayers are pensation, occupational licenses, and express consent. now looking for—and must have—per- marriage licenses.’’ (Source: Daniel But in recognition that sometimes manence in the tax code with regard to Solove and Marc Rotenberg, Informa- there are legitimate needs for Social their ability to deduct State and local tion Privacy Law, Aspen Publishers, Security numbers, the bill also makes sales taxes from their Federal income 2003, at page 447–48.) tax. exceptions. Perhaps the most impor- It isn’t surprising, then, that the sale As I mentioned, this issue has been a tant exception allows the sale of Social of Social Security numbers is pro- primary one for me on behalf of the Security numbers between businesses, ceeding at a furious pace. According to people I serve. In fact, when I became a or between the government and busi- the GAO in a report that it released member of this body in the 107th Con- nesses. The bill also makes exceptions earlier this year, ‘‘Internet-based infor- gress, one of my first legislative acts for law enforcement, national security, mation resellers whose Web sites we was to cosponsor sales tax deduction compliance with other laws, and a few accessed also obtain SSNs from their legislation that at the time was intro- other areas. customers and scour public records and duced by the former Senator from Ten- Additionally, this bill prohibits gov- other publicly available information to nessee, Mr. Thompson. In the 108th ernment entities from displaying So- provide the information to persons Congress, Senator HUTCHISON and I car- cial Security numbers on public willing to pay a fee.’’ (Source: Social ried the banner as the lead sponsors of records that are posted on the Internet Security numbers: Private Sector Enti- similar legislation, the core of which or in other electronic media after the ties Routinely Obtain and Use SSNs, we saw enacted into law for a 2-year legislation’s effective date. It also pro- and Laws Limit the Disclosure of this period. hibits governments from printing So- Information (2004, Report Number I am here once again in the 109th cial Security numbers on government GAO–04–11, on Highlights Page). Congress with the Senator from Texas, checks. Governments also play a role in the Mrs. HUTCHISON, on the heels of a vic- This bill also punishes people who widespread availability of Social Secu- tory for a two-year reprieve for our fraudulently use Social Security num- rity numbers to the general public. Ac- constituents, looking, now, for perma- bers to obtain benefits that they do not cording to another GAO report, issued nent equity in the tax code. I look for- deserve. just the other month in November 2004, ward to continuing to work with Sen- Finally, this law has teeth to enforce ‘‘State agencies in 41 States and the ator HUTCHISON, as well as Senator its provisions. It gives the Attorney District of Columbia reported visible FRIST and others, in moving this sales General the authority to issue civil SSNs in at least one type of record.’’ tax deduction legislation forward in penalties of up to $5,000 for people who (Source: Government Could Do More to the coming months. misuse Social Security numbers. It Reduce Display in Public Records and Only by making the two-year law also creates a criminal penalty, of up on Identity Cards, (November 2004, Re- permanent will we be able to see to it to five years in prison, for anyone who port Number GAO–05–59, on Highlights that taxpayers from Washington State, obtains another person’s Social Secu- Page). This affects about 94 percent of or any other State, are not unfairly rity number for the purpose of locating the country’s population. The report singled out to pay higher taxes. or identifying that individual with the continues that ‘‘15 to 28 percent of the I urge prompt action on this meas- intent to physically harm that person. nation’s 3,141 counties do place [Social ure. And it lets the victims of identity theft Security numbers] on the Internet and sue in court to recover their loss from this could affect millions of people.’’ By Mrs. FEINSTEIN (for herself the person who causes it. If anyone who has doubts about the and Mr. LEAHY): Mr. President, the need for this bill important role that this legislation S. 29. A bill to amend title 18, United should be clear. Theft of a Social Secu- will in protecting the identity of Amer- States Code, to limit the misuse of so- rity number can be especially dev- icans, let me offer a few facts.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00110 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S217 For the past four years, the Federal In the 107th Congress, I introduced, have become one of the tools that can be Trade Commission has ranked identity S. 848 and S. 3100. used to facilitate crime, fraud, and invasions theft as its top consumer complaint. In the 108th Congress, I introduced S. of the privacy of the individuals to whom the When the new numbers for 2004 come 228, S. 745, and S. 2801. numbers are assigned. Because the Federal Government created and maintains this sys- out in early February, I will not be sur- None of these bills moved. Today, I tem, and because the Federal Government prised if identity theft again ranks as stand before you yet again, to intro- does not permit individuals to exempt them- the most common complaint. duce for a seventh time a bill to take selves from those requirements, it is appro- The most comprehensive survey of steps that will make it more difficult priate for the Federal Government to take identity-theft victimization, a Federal for thieves to steal this precious re- steps to stem the abuse of social security Trade Commission report released in source. This issue does not concern Re- numbers. 2003, found that nearly 10 million publican government or Democratic (4) The display, sale, or purchase of social Americans had been victimized by government; this is an issue of good security numbers in no way facilitates unin- hibited, robust, and wide-open public debate, identity theft in the previous year. The government. California Office of Privacy Protection and restrictions on such display, sale, or pur- Last year, the President signed into chase would not affect public debate. estimates that 1.1 million of those vic- law a bill that I helped to author, to in- (5) No one should seek to profit from the tims were Californians. crease penalties for those who steal the display, sale, or purchase of social security A separate FTC report found Cali- identities of others. But punishment is numbers in circumstances that create a sub- fornia to have the third-highest rate of not enough. We need to stop identity stantial risk of physical, emotional, or finan- identity theft per capita in 2003, with theft from occurring in the first place. cial harm to the individuals to whom those the number of victims increasing by This information should have been numbers are assigned. more than 28 percent from 2002. (6) Consequently, this Act provides each in- under lock and key long ago. It is time dividual that has been assigned a social secu- For anyone still unconvinced about for us to act. Thank you Mr. President. the need for this law, let me offer a few rity number some degree of protection from I ask for unanimous consent that the the display, sale, and purchase of that num- specific examples of identity theft. text of the legislation directly follow In November, 2004, in my home state ber in any circumstance that might facili- this statement in the RECORD. tate unlawful conduct. of California, a married couple—Anto- There being no objection, the bill was SEC. 3. PROHIBITION OF THE DISPLAY, SALE, OR nio and Rose Espino—pled guilty after ordered to be printed in the RECORD, as PURCHASE OF SOCIAL SECURITY stealing the identities of over 1,000 vic- follows: NUMBERS. tims, and also stealing more than $8.8 (a) PROHIBITION.— S. 29 million in fraudulent unemployment (1) IN GENERAL.—Chapter 47 of title 18, insurance. They obtained employer Be it enacted by the Senate and House of Rep- United States Code, is amended by inserting payroll lists that included names and resentatives of the United States of America in after section 1028 the following: Congress assembled, Social Security numbers. (Source: ‘‘§ 1028A. Prohibition of the display, sale, or ‘‘San Joaquin couple plead guilty in SECTION 1. SHORT TITLE; TABLE OF CONTENTS. purchase of social security numbers (a) SHORT TITLE.—This Act may be cited as ‘‘(a) DEFINITIONS.—In this section: identity-theft case,’’ Fresno Bee, No- the ‘‘Social Security Number Misuse Preven- vember 23, 2004). ‘‘(1) DISPLAY.—The term ‘display’ means to tion Act’’. intentionally communicate or otherwise In another case, Christopher Jones, a (b) TABLE OF CONTENTS.—The table of con- twenty-five-year-old employee at the make available (on the Internet or in any tents of this Act is as follows: other manner) to the general public an indi- University of North Carolina-Pem- Sec. 1. Short title; table of contents vidual’s social security number. broke, stole approximately 3,000 Social Sec. 2. Findings ‘‘(2) PERSON.—The term ‘person’ means any Security numbers through his job, Sec. 3. Prohibition of the display, sale, or individual, partnership, corporation, trust, handing out towels and other equip- purchase of social security estate, cooperative, association, or any other ment at the university gym, and then numbers entity. tried to sell them in blocks of 1,000 on Sec. 4. Application of prohibition of the dis- ‘‘(3) PURCHASE.—The term ‘purchase’ eBay. He stated in his advertisement: play, sale, or purchase of social means providing directly or indirectly, any- security numbers to public thing of value in exchange for a social secu- ‘‘100 (one hundred Social Security # records Numbers Obtain False Credit Cards rity number. Sec. 5. Rulemaking authority of the Attor- ‘‘(4) SALE.—The term ‘sale’ means obtain- Idenity Theft I Don’t Care Bid Starts ney General ing, directly or indirectly, anything of value at a Dollar a Piece USPS Money Orders Sec. 6. Treatment of social security numbers in exchange for a social security number. only all Different.’’ on government documents ‘‘(5) STATE.—The term ‘State’ means any Similar behavior—using the Web to Sec. 7. Limits on personal disclosure of a so- State of the United States, the District of gather Social Secuirty numbers—still cial security number for con- Columbia, Puerto Rico, the Northern Mar- continues. As The Washington Post re- sumer transactions iana Islands, the United States Virgin Is- ported last February, by using the Sec. 8. Extension of civil monetary penalties lands, Guam, American Samoa, and any ter- for misuse of a social security ritory or possession of the United States. common search engine Google on the number Web, ‘‘Search strings . . . often bring up ‘‘(b) LIMITATION ON DISPLAY.—Except as Sec. 9. Criminal penalties for the misuse of a provided in section 1028B, no person may dis- spread sheets, credit card numbers, and social security number play any individual’s social security number Social Security numbers linked to a Sec. 10. Civil actions and civil penalties to the general public without the affirma- customer list.’’ (Source: ‘‘Online Sec. 11. Federal injunctive authority tively expressed consent of the individual. Search Engines Help Lift Cover of Pri- SEC. 2. FINDINGS. ‘‘(c) LIMITATION ON SALE OR PURCHASE.— vacy,’’ The Washington Post, February Congress makes the following findings: Except as otherwise provided in this section, 9, 2004, at A1). (1) The inappropriate display, sale, or pur- no person may sell or purchase any individ- I personally first became aware of chase of social security numbers has contrib- ual’s social security number without the af- the need for a law to restrict the sale uted to a growing range of illegal activities, firmatively expressed consent of the indi- and display of Social Security numbers including fraud, identity theft, and, in some vidual. cases, stalking and other violent crimes. ‘‘(d) PREREQUISITES FOR CONSENT.—In order about eight years ago, when one of my (2) While financial institutions, health care for consent to exist under subsection (b) or staff members sat me down and providers, and other entities have often used (c), the person displaying or seeking to dis- downloaded my own Social Security social security numbers to confirm the iden- play, selling or attempting to sell, or pur- Number from the Internet in a matter tity of an individual, the general display to chasing or attempting to purchase, an indi- of minutes. the public, sale, or purchase of these num- vidual’s social security number shall— Unfortunately, Congress has done lit- bers has been used to commit crimes, and ‘‘(1) inform the individual of the general tle to protect Social Security numbers also can result in serious invasions of indi- purpose for which the number will be used, since then. We still badly need a uni- vidual privacy. the types of persons to whom the number form law. Year after year, I have advo- (3) The Federal Government requires vir- may be available, and the scope of trans- tually every individual in the United States actions permitted by the consent; and cated and proposed such legislation to obtain and maintain a social security ‘‘(2) obtain the affirmatively expressed that would restrict the public display number in order to pay taxes, to qualify for consent (electronically or in writing) of the and use of Social Security numbers: social security benefits, or to seek employ- individual. In the 106th Congress, I introduced S. ment. An unintended consequence of these ‘‘(e) EXCEPTIONS.—Nothing in this section 2966. requirements is that social security numbers shall be construed to prohibit or limit the

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APPLICATION OF PROHIBITION OF THE eral deems it appropriate, the Attorney Gen- under any Federal law; DISPLAY, SALE, OR PURCHASE OF eral may issue regulations applying section ‘‘(2) for a public health purpose, including SOCIAL SECURITY NUMBERS TO 1028A to such records. the protection of the health or safety of an PUBLIC RECORDS. ‘‘(2) LIST OF PAPER AND OTHER NONELEC- individual in an emergency situation; (a) PUBLIC RECORDS EXCEPTION.— TRONIC RECORDS.—The records listed in this ‘‘(3) for a national security purpose; (1) IN GENERAL.—Chapter 47 of title 18, paragraph are as follows: ‘‘(4) for a law enforcement purpose, includ- United States Code (as amended by section ‘‘(A) Professional or occupational licenses. ing the investigation of fraud and the en- 3(a)(1)), is amended by inserting after section ‘‘(B) Marriage licenses. forcement of a child support obligation; 1028A the following: ‘‘(C) Birth certificates. ‘‘(5) if the display, sale, or purchase of the ‘‘§ 1028B. Display, sale, or purchase of public ‘‘(D) Death certificates. number is for a use occurring as a result of records containing social security numbers ‘‘(E) Other short public documents that an interaction between businesses, govern- ‘‘(a) DEFINITION.—In this section, the term display a social security number in a routine ments, or business and government (regard- ‘public record’ means any governmental and consistent manner on the face of the less of which entity initiates the inter- record that is made available to the general document. action), including, but not limited to— public. ‘‘(3) CRITERIA FOR ATTORNEY GENERAL RE- ‘‘(A) the prevention of fraud (including ‘‘(b) IN GENERAL.—Except as provided in VIEW.—In determining whether section 1028A fraud in protecting an employee’s right to subsections (c), (d), and (e), section 1028A should apply to the records listed in para- employment benefits); shall not apply to a public record. graph (2), the Attorney General shall con- ‘‘(B) the facilitation of credit checks or the ‘‘(c) PUBLIC RECORDS ON THE INTERNET OR IN sider the following: facilitation of background checks of employ- AN ELECTRONIC MEDIUM.— ‘‘(A) The cost or burden to the general pub- ees, prospective employees, or volunteers; ‘‘(1) IN GENERAL.—Section 1028A shall apply lic, businesses, commercial enterprises, non- ‘‘(C) the retrieval of other information to any public record first posted onto the profit organizations, and to Federal, State, from other businesses, commercial enter- Internet or provided in an electronic medium and local governments of complying with prises, government entities, or private non- by, or on behalf of a government entity after section 1028A. profit organizations; or the date of enactment of this section, except ‘‘(B) The benefit to the general public, ‘‘(D) when the transmission of the number as limited by the Attorney General in ac- businesses, commercial enterprises, non- is incidental to, and in the course of, the cordance with paragraph (2). profit organizations, and to Federal, State, sale, lease, franchising, or merger of all, or a ‘‘(2) EXCEPTION FOR GOVERNMENT ENTITIES and local governments if the Attorney Gen- portion of, a business; ALREADY PLACING PUBLIC RECORDS ON THE eral were to determine that section 1028A ‘‘(6) if the transfer of such a number is part INTERNET OR IN ELECTRONIC FORM.—Not later should apply to such records.’’. of a data matching program involving a Fed- than 60 days after the date of enactment of (2) CONFORMING AMENDMENT.—The chapter eral, State, or local agency; or this section, the Attorney General shall analysis for chapter 47 of title 18, United ‘‘(7) if such number is required to be sub- issue regulations regarding the applicability States Code (as amended by section 3(a)(2)), mitted as part of the process for applying for of section 1028A to any record of a category is amended by inserting after the item relat- any type of Federal, State, or local govern- of public records first posted onto the Inter- ing to section 1028A the following: ment benefit or program; net or provided in an electronic medium by, ‘‘1028B. Display, sale, or purchase of pub- except that, nothing in this subsection shall or on behalf of a government entity prior to lic records containing social se- be construed as permitting a professional or the date of enactment of this section. The curity numbers’’. commercial user to display or sell a social regulations will determine which individual security number to the general public. records within categories of records of these (b) STUDY AND REPORT ON SOCIAL SECURITY ‘‘(f) LIMITATION.—Nothing in this section government entities, if any, may continue to NUMBERS IN PUBLIC RECORDS.— shall prohibit or limit the display, sale, or be posted on the Internet or in electronic (1) STUDY.—The Comptroller General of the purchase of social security numbers as per- form after the effective date of this section. United States shall conduct a study and pre- mitted under title V of the Gramm-Leach- In promulgating these regulations, the At- pare a report on social security numbers in Bliley Act, or for the purpose of affiliate torney General may include in the regula- public records. In developing the report, the sharing as permitted under the Fair Credit tions a set of procedures for implementing Comptroller General shall consult with the Reporting Act, except that no entity regu- the regulations and shall consider the fol- Administrative Office of the United States lated under such Acts may make social secu- lowing: Courts, State and local governments that rity numbers available to the general public, ‘‘(A) The cost and availability of tech- store, maintain, or disseminate public as may be determined by the appropriate nology available to a governmental entity to records, and other stakeholders, including regulators under such Acts. For purposes of redact social security numbers from public members of the private sector who routinely this subsection, the general public shall not records first provided in electronic form use public records that contain social secu- include affiliates or unaffiliated third-party after the effective date of this section. rity numbers. business entities as may be defined by the ‘‘(B) The cost or burden to the general pub- (2) REPORT.—Not later than 1 year after appropriate regulators.’’. lic, businesses, commercial enterprises, non- the date of enactment of this Act, the Comp- (2) CONFORMING AMENDMENT.—The chapter profit organizations, and to Federal, State, troller General of the United States shall analysis for chapter 47 of title 18, United and local governments of complying with submit to Congress a report on the study States Code, is amended by inserting after section 1028A with respect to such records. conducted under paragraph (1). The report the item relating to section 1028 the fol- ‘‘(C) The benefit to the general public, shall include a detailed description of the ac- lowing: businesses, commercial enterprises, non- tivities and results of the study and rec- ‘‘1028A. Prohibition of the display, sale, profit organizations, and to Federal, State, ommendations for such legislative action as or purchase of social security and local governments if the Attorney Gen- the Comptroller General considers appro- numbers’’. eral were to determine that section 1028A priate. The report, at a minimum, shall in- (b) STUDY; REPORT.— should apply to such records. clude— (1) IN GENERAL.—The Attorney General Nothing in the regulation shall permit a pub- (A) a review of the uses of social security shall conduct a study and prepare a report on lic entity to post a category of public records numbers in non-federal public records; all of the uses of social security numbers on the Internet or in electronic form after (B) a review of the manner in which public permitted, required, authorized, or excepted the effective date of this section if such cat- records are stored (with separate reviews for under any Federal law. The report shall in- egory had not been placed on the Internet or both paper records and electronic records); clude a detailed description of the uses al- in electronic form prior to such effective (C) a review of the advantages or utility of lowed as of the date of enactment of this date. public records that contain social security Act, the impact of such uses on privacy and ‘‘(d) HARVESTED SOCIAL SECURITY NUM- numbers, including the utility for law en- data security, and shall evaluate whether BERS.—Section 1028A shall apply to any pub- forcement, and for the promotion of home- such uses should be continued or discon- lic record of a government entity which con- land security; tinued by appropriate legislative action. tains social security numbers extracted from (D) a review of the disadvantages or draw- (2) REPORT.—Not later than 1 year after other public records for the purpose of dis- backs of public records that contain social the date of enactment of this Act, the Attor- playing or selling such numbers to the gen- security numbers, including criminal activ- ney General shall report to Congress findings eral public. ity, compromised personal privacy, or under this subsection. The report shall in- ‘‘(e) ATTORNEY GENERAL RULEMAKING ON threats to homeland security; clude such recommendations for legislation PAPER RECORDS.— (E) the costs and benefits for State and based on criteria the Attorney General de- ‘‘(1) IN GENERAL.—Not later than 60 days local governments of removing social secu- termines to be appropriate. after the date of enactment of this section, rity numbers from public records, including (c) EFFECTIVE DATE.—The amendments the Attorney General shall determine the a review of current technologies and proce- made by this section shall take effect on the feasibility and advisability of applying sec- dures for removing social security numbers date that is 30 days after the date on which tion 1028A to the records listed in paragraph from public records; and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00112 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S219 (F) an assessment of the benefits and costs spect to violations of section 205(c)(2)(C)(x) ‘‘(iii) obtain damages, restitution, or other to businesses, their customers, and the gen- of the Social Security Act (42 U.S.C. compensation on behalf of residents of the eral public of prohibiting the display of so- 405(c)(2)(C)(x)), as added by paragraph (1), oc- State; or cial security numbers on public records (with curring after the date that is 3 years after ‘‘(iv) obtain such other relief as the court separate assessments for both paper records the date of enactment of this Act. may consider appropriate. and electronic records). (b) PROHIBITION OF INMATE ACCESS TO SO- ‘‘(B) NOTICE.— (c) EFFECTIVE DATE.—The prohibition with CIAL SECURITY ACCOUNT NUMBERS.— ‘‘(i) IN GENERAL.—Before filing an action respect to electronic versions of new classes (1) IN GENERAL.—Section 205(c)(2)(C) of the under subparagraph (A), the attorney gen- of public records under section 1028B(b) of Social Security Act (42 U.S.C. 405(c)(2)(C)) eral of the State involved shall provide to title 18, United States Code (as added by sub- (as amended by subsection (b)) is amended by the Attorney General— section (a)(1)) shall not take effect until the adding at the end the following: ‘‘(I) written notice of the action; and date that is 60 days after the date of enact- ‘‘(xi) No Federal, State, or local agency ‘‘(II) a copy of the complaint for the ac- ment of this Act. may employ, or enter into a contract for the tion. SEC. 5. RULEMAKING AUTHORITY OF THE ATTOR- use or employment of, prisoners in any ca- ‘‘(ii) EXEMPTION.— NEY GENERAL. pacity that would allow such prisoners ac- ‘‘(I) IN GENERAL.—Clause (i) shall not apply (a) IN GENERAL.—Except as provided in cess to the social security account numbers with respect to the filing of an action by an subsection (b), the Attorney General may of other individuals. For purposes of this attorney general of a State under this sub- prescribe such rules and regulations as the clause, the term ‘prisoner’ means an indi- section, if the State attorney general deter- Attorney General deems necessary to carry vidual confined in a jail, prison, or other mines that it is not feasible to provide the out the provisions of section 1028A(e)(5) of notice described in such subparagraph before title 18, United States Code (as added by sec- penal institution or correctional facility the filing of the action. tion 3(a)(1)). pursuant to such individual’s conviction of a (b) DISPLAY, SALE, OR PURCHASE RULE- criminal offense.’’. ‘‘(II) NOTIFICATION.—With respect to an ac- MAKING WITH RESPECT TO INTERACTIONS BE- (2) EFFECTIVE DATE.—The amendment tion described in subclause (I), the attorney TWEEN BUSINESSES, GOVERNMENTS, OR BUSI- made by this subsection shall apply with re- general of a State shall provide notice and a NESS AND GOVERNMENT.— spect to employment of prisoners, or entry copy of the complaint to the Attorney Gen- (1) IN GENERAL.—Not later than 1 year after into contract with prisoners, after the date eral at the same time as the State attorney the date of enactment of this Act, the Attor- that is 1 year after the date of enactment of general files the action. ney General, in consultation with the Com- this Act. ‘‘(2) INTERVENTION.— missioner of Social Security, the Chairman SEC. 7. LIMITS ON PERSONAL DISCLOSURE OF A ‘‘(A) IN GENERAL.—On receiving notice of the Federal Trade Commission, and such SOCIAL SECURITY NUMBER FOR under paragraph (1)(B), the Attorney General other heads of Federal agencies as the Attor- CONSUMER TRANSACTIONS. shall have the right to intervene in the ac- ney General determines appropriate, shall (a) IN GENERAL.—Part A of title XI of the tion that is the subject of the notice. conduct such rulemaking procedures in ac- Social Security Act (42 U.S.C. 1301 et seq.) is ‘‘(B) EFFECT OF INTERVENTION.—If the At- cordance with subchapter II of chapter 5 of amended by adding at the end the following: torney General intervenes in the action title 5, United States Code, as are necessary ‘‘SEC. 1150A. LIMITS ON PERSONAL DISCLOSURE under paragraph (1), the Attorney General to promulgate regulations to implement and OF A SOCIAL SECURITY NUMBER shall have the right to be heard with respect clarify the uses occurring as a result of an FOR CONSUMER TRANSACTIONS. to any matter that arises in that action. interaction between businesses, govern- ‘‘(a) IN GENERAL.—A commercial entity ‘‘(3) CONSTRUCTION.—For purposes of bring- ments, or business and government (regard- may not require an individual to provide the ing any civil action under paragraph (1), less of which entity initiates the interaction) individual’s social security number when nothing in this section shall be construed to permitted under section 1028A(e)(5) of title purchasing a commercial good or service or prevent an attorney general of a State from 18, United States Code (as added by section deny an individual the good or service for re- exercising the powers conferred on such at- 3(a)(1)). fusing to provide that number except— torney general by the laws of that State to— (2) FACTORS TO BE CONSIDERED.—In promul- ‘‘(1) for any purpose relating to— ‘‘(A) conduct investigations; gating the regulations required under para- ‘‘(A) obtaining a consumer report for any ‘‘(B) administer oaths or affirmations; or graph (1), the Attorney General shall, at a purpose permitted under the Fair Credit Re- ‘‘(C) compel the attendance of witnesses or minimum, consider the following: porting Act; the production of documentary and other (A) The benefit to a particular business, to ‘‘(B) a background check of the individual evidence. customers of the business, and to the general conducted by a landlord, lessor, employer, ‘‘(4) ACTIONS BY THE ATTORNEY GENERAL OF public of the display, sale, or purchase of an voluntary service agency, or other entity as THE UNITED STATES.—In any case in which an individual’s social security number. determined by the Attorney General; action is instituted by or on behalf of the At- (B) The costs that businesses, customers of ‘‘(C) law enforcement; or torney General for violation of a practice businesses, and the general public may incur ‘‘(D) a Federal, State, or local law require- that is prohibited under this section, no as a result of prohibitions on the display, ment; or State may, during the pendency of that ac- sale, or purchase of social security numbers. ‘‘(2) if the social security number is nec- tion, institute an action under paragraph (1) (C) The risk that a particular business essary to verify the identity of the consumer against any defendant named in the com- practice will promote the use of a social se- to effect, administer, or enforce the specific plaint in that action for violation of that curity number to commit fraud, deception, transaction requested or authorized by the practice. or crime. consumer, or to prevent fraud. ‘‘(5) VENUE; SERVICE OF PROCESS.— (D) The presence of adequate safeguards, ‘‘(b) APPLICATION OF CIVIL MONEY PEN- ‘‘(A) VENUE.—Any action brought under procedures, and technologies to prevent— ALTIES.—A violation of this section shall be paragraph (1) may be brought in the district (i) misuse of social security numbers by deemed to be a violation of section court of the United States that meets appli- employees within a business; and 1129(a)(3)(F). cable requirements relating to venue under (ii) misappropriation of social security ‘‘(c) APPLICATION OF CRIMINAL PENALTIES.— section 1391 of title 28, United States Code. numbers by the general public, while permit- A violation of this section shall be deemed to ‘‘(B) SERVICE OF PROCESS.—In an action ting internal business uses of such numbers. be a violation of section 208(a)(8). brought under paragraph (1), process may be (E) The presence of procedures to prevent ‘‘(d) LIMITATION ON CLASS ACTIONS.—No served in any district in which the defend- identity thieves, stalkers, and other individ- class action alleging a violation of this sec- ant— uals with ill intent from posing as legitimate tion shall be maintained under this section ‘‘(i) is an inhabitant; or businesses to obtain social security numbers. by an individual or any private party in Fed- ‘‘(ii) may be found. (F) The impact of such uses on privacy. eral or State court. ‘‘(f) SUNSET.—This section shall not apply SEC. 6. TREATMENT OF SOCIAL SECURITY NUM- ‘‘(e) STATE ATTORNEY GENERAL ENFORCE- on or after the date that is 6 years after the BERS ON GOVERNMENT DOCU- effective date of this section.’’. MENTS. MENT.— (a) PROHIBITION OF USE OF SOCIAL SECURITY ‘‘(1) IN GENERAL.— (b) EVALUATION AND REPORT.—Not later ACCOUNT NUMBERS ON CHECKS ISSUED FOR ‘‘(A) CIVIL ACTIONS.—In any case in which than the date that is 6 years and 6 months PAYMENT BY GOVERNMENTAL AGENCIES.— the attorney general of a State has reason to after the date of enactment of this Act, the (1) IN GENERAL.—Section 205(c)(2)(C) of the believe that an interest of the residents of Attorney General, in consultation with the Social Security Act (42 U.S.C. 405(c)(2)(C)) is that State has been or is threatened or ad- chairman of the Federal Trade Commission, amended by adding at the end the following: versely affected by the engagement of any shall issue a report evaluating the effective- ‘‘(x) No Federal, State, or local agency person in a practice that is prohibited under ness and efficiency of section 1150A of the may display the social security account this section, the State, as parens patriae, Social Security Act (as added by subsection number of any individual, or any derivative may bring a civil action on behalf of the resi- (a)) and shall make recommendations to of such number, on any check issued for any dents of the State in a district court of the Congress as to any legislative action deter- payment by the Federal, State, or local United States of appropriate jurisdiction mined to be necessary or advisable with re- agency.’’. to— spect to such section, including a rec- (2) EFFECTIVE DATE.—The amendment ‘‘(i) enjoin that practice; ommendation regarding whether to reau- made by this subsection shall apply with re- ‘‘(ii) enforce compliance with such section; thorize such section.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00113 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S220 CONGRESSIONAL RECORD — SENATE January 24, 2005

(c) EFFECTIVE DATE.—The amendment U.S.C. 1320a–8(a)), as amended by subsection (3) Section 1129(e)(1)(A) of the Social Secu- made by subsection (a) shall apply to re- (a)(1), is amended— rity Act (42 U.S.C. 1320a–8(e)(1)(A)) is amend- quests to provide a social security number (1) by redesignating paragraph (2) as para- ed by striking ‘‘statement or representation occurring after the date that is 1 year after graph (4); referred to in subsection (a) was made’’ and the date of enactment of this Act. (2) by redesignating the last sentence of inserting ‘‘violation occurred’’. (e) EFFECTIVE DATES.— SEC. 8. EXTENSION OF CIVIL MONETARY PEN- paragraph (1) as paragraph (2) and inserting ALTIES FOR MISUSE OF A SOCIAL such paragraph after paragraph (1); and (1) IN GENERAL.—Except as provided in SECURITY NUMBER. (3) by inserting after paragraph (2) (as so paragraph (2), the amendments made by this (a) TREATMENT OF WITHHOLDING OF MATE- redesignated) the following: section shall apply with respect to violations ‘‘(3) Any person (including an organization, of sections 1129 and 1129A of the Social Secu- RIAL FACTS.— agency, or other entity) who— rity Act (42 U.S.C. 1320–8 and 1320a–8a), as (1) CIVIL PENALTIES.—The first sentence of section 1129(a)(1) of the Social Security Act ‘‘(A) uses a social security account number amended by this section, committed after (42 U.S.C. 1320a–8(a)(1)) is amended— that such person knows or should know has the date of enactment of this Act. been assigned by the Commissioner of Social (A) by striking ‘‘who’’ and inserting (2) VIOLATIONS BY GOVERNMENT AGENTS IN Security (in an exercise of authority under POSSESSION OF SOCIAL SECURITY NUMBERS.— ‘‘who—’’; section 205(c)(2) to establish and maintain Section 1129(a)(3)(I) of the Social Security (B) by striking ‘‘makes’’ and all that fol- records) on the basis of false information fur- Act (42 U.S.C. 1320a–8(a)(3)(I)), as added by lows through ‘‘shall be subject to’’ and in- nished to the Commissioner by any person; subsection (b), shall apply with respect to serting the following: ‘‘(B) falsely represents a number to be the violations of that section occurring on or ‘‘(A) makes, or causes to be made, a state- social security account number assigned by after the effective date described in section ment or representation of a material fact, the Commissioner of Social Security to any 3(c). for use in determining any initial or con- individual, when such person knows or tinuing right to or the amount of monthly SEC. 9. CRIMINAL PENALTIES FOR THE MISUSE should know that such number is not the so- OF A SOCIAL SECURITY NUMBER. insurance benefits under title II or benefits cial security account number assigned by the (a) PROHIBITION OF WRONGFUL USE AS PER- or payments under title VIII or XVI, that the Commissioner to such individual; SONAL IDENTIFICATION NUMBER.—No person person knows or should know is false or mis- ‘‘(C) knowingly alters a social security may obtain any individual’s social security leading; card issued by the Commissioner of Social number for purposes of locating or identi- ‘‘(B) makes such a statement or represen- Security, or possesses such a card with in- fying an individual with the intent to phys- tation for such use with knowing disregard tent to alter it; ically injure, harm, or use the identity of the for the truth; or ‘‘(D) knowingly displays, sells, or pur- individual for any illegal purpose. ‘‘(C) omits from a statement or representa- chases a card that is, or purports to be, a (b) CRIMINAL SANCTIONS.—Section 208(a) of tion for such use, or otherwise withholds dis- card issued by the Commissioner of Social the Social Security Act (42 U.S.C. 408(a)) is closure of, a fact which the individual knows Security, or possesses such a card with in- amended— or should know is material to the determina- tent to display, purchase, or sell it; (1) in paragraph (8), by inserting ‘‘or’’ after tion of any initial or continuing right to or ‘‘(E) counterfeits a social security card, or the semicolon; and the amount of monthly insurance benefits possesses a counterfeit social security card (2) by inserting after paragraph (8) the fol- under title II or benefits or payments under with intent to display, sell, or purchase it; lowing: title VIII or XVI and the individual knows, ‘‘(F) discloses, uses, compels the disclosure ‘‘(9) except as provided in subsections (e) or should know, that the statement or rep- of, or knowingly displays, sells, or purchases and (f) of section 1028A of title 18, United resentation with such omission is false or States Code, knowingly and willfully dis- the social security account number of any misleading or that the withholding of such plays, sells, or purchases (as those terms are person in violation of the laws of the United disclosure is misleading, shall be subject to’’; defined in section 1028A(a) of title 18, United States; (C) by inserting ‘‘or each receipt of such States Code) any individual’s social security ‘‘(G) with intent to deceive the Commis- benefits while withholding disclosure of such account number without having met the pre- sioner of Social Security as to such person’s fact’’ after ‘‘each such statement or rep- requisites for consent under section 1028A(d) true identity (or the true identity of any resentation’’; of title 18, United States Code; or other person) furnishes or causes to be fur- (D) by inserting ‘‘or because of such with- ‘‘(10) obtains any individual’s social secu- nished false information to the Commis- holding of disclosure of a material fact’’ rity number for the purpose of locating or sioner with respect to any information re- after ‘‘because of such statement or rep- identifying the individual with the intent to quired by the Commissioner in connection resentation’’; and injure or to harm that individual, or to use with the establishment and maintenance of (E) by inserting ‘‘or such a withholding of the identity of that individual for an illegal the records provided for in section 205(c)(2); disclosure’’ after ‘‘such a statement or rep- purpose;’’. ‘‘(H) offers, for a fee, to acquire for any in- resentation’’. SEC. 10. CIVIL ACTIONS AND CIVIL PENALTIES. dividual, or to assist in acquiring for any in- (2) ADMINISTRATIVE PROCEDURE FOR IMPOS- (a) CIVIL ACTION IN STATE COURTS.— dividual, an additional social security ac- ING PENALTIES.—The first sentence of section (1) IN GENERAL.—Any individual aggrieved count number or a number which purports to 1129A(a) of the Social Security Act (42 U.S.C. by an act of any person in violation of this be a social security account number; or 1320a–8a(a)) is amended— Act or any amendments made by this Act ‘‘(I) being an officer or employee of a Fed- (A) by striking ‘‘who’’ and inserting may, if otherwise permitted by the laws or eral, State, or local agency in possession of ‘‘who—’’; and rules of the court of a State, bring in an ap- any individual’s social security account (B) by striking ‘‘makes’’ and all that fol- propriate court of that State— number, willfully acts or fails to act so as to lows through ‘‘shall be subject to’’ and in- (A) an action to enjoin such violation; cause a violation by such agency of clause serting the following: (B) an action to recover for actual mone- (vi)(II) or (x) of section 205(c)(2)(C), shall be ‘‘(1) makes, or causes to be made, a state- tary loss from such a violation, or to receive subject to, in addition to any other penalties ment or representation of a material fact, up to $500 in damages for each such viola- that may be prescribed by law, a civil money for use in determining any initial or con- tion, whichever is greater; or penalty of not more than $5,000 for each vio- tinuing right to or the amount of monthly (C) both such actions. lation. Such person shall also be subject to insurance benefits under title II or benefits an assessment, in lieu of damages sustained It shall be an affirmative defense in any ac- or payments under title VIII or XVI, that the by the United States resulting from such tion brought under this paragraph that the person knows or should know is false or mis- violation, of not more than twice the defendant has established and implemented, leading; amount of any benefits or payments paid as with due care, reasonable practices and pro- ‘‘(2) makes such a statement or representa- a result of such violation.’’. cedures to effectively prevent violations of tion for such use with knowing disregard for (c) CLARIFICATION OF TREATMENT OF RECOV- the regulations prescribed under this Act. If the truth; or ERED AMOUNTS.—Section 1129(e)(2)(B) of the the court finds that the defendant willfully ‘‘(3) omits from a statement or representa- Social Security Act (42 U.S.C. 1320a– or knowingly violated the regulations pre- tion for such use, or otherwise withholds dis- 8(e)(2)(B)) is amended by striking ‘‘In the scribed under this subsection, the court may, closure of, a fact which the individual knows case of amounts recovered arising out of a in its discretion, increase the amount of the or should know is material to the determina- determination relating to title VIII or XVI,’’ award to an amount equal to not more than tion of any initial or continuing right to or and inserting ‘‘In the case of any other 3 times the amount available under subpara- the amount of monthly insurance benefits amounts recovered under this section,’’. graph (B). under title II or benefits or payments under (d) CONFORMING AMENDMENTS.— (2) STATUTE OF LIMITATIONS.—An action title VIII or XVI and the individual knows, (1) Section 1129(b)(3)(A) of the Social Secu- may be commenced under this subsection or should know, that the statement or rep- rity Act (42 U.S.C. 1320a–8(b)(3)(A)) is amend- not later than the earlier of— resentation with such omission is false or ed by striking ‘‘charging fraud or false state- (A) 5 years after the date on which the al- misleading or that the withholding of such ments’’. leged violation occurred; or disclosure is misleading, shall be subject to’’. (2) Section 1129(c)(1) of the Social Security (B) 3 years after the date on which the al- (b) APPLICATION OF CIVIL MONEY PENALTIES Act (42 U.S.C. 1320a–8(c)(1)) is amended by leged violation was or should have been rea- TO ELEMENTS OF CRIMINAL VIOLATIONS.—Sec- striking ‘‘and representations’’ and inserting sonably discovered by the aggrieved indi- tion 1129(a) of the Social Security Act (42 ‘‘, representations, or actions’’. vidual.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00114 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S221 (3) NONEXCLUSIVE REMEDY.—The remedy stood. The 2000 census shows that 30 The exchange rate conversion is often provided under this subsection shall be in ad- million people in this country are for- the mechanism for this abusive prac- dition to any other remedies available to the eign-born—the largest number in our tice. individual. Nation’s history—and the vast major- Second, remittances are currently (b) CIVIL PENALTIES.— ity of them—22 million are citizens or not subject to the requirements set by (1) IN GENERAL.—Any person who the At- torney General determines has violated any legal residents. More than 40 percent of Federal consumer protection law, in- section of this Act or of any amendments our Nation’s foreign-born population cluding the disclosure of fees. There is made by this Act shall be subject, in addi- immigrated to the United States in the no requirement that a remittance tion to any other penalties that may be pre- 1990s, and some 15.4 million, or more transfer provider disclose to the con- scribed by law— than half the immigrant community, sumer the exchange rate fee that will (A) to a civil penalty of not more than have come from Latin American coun- be applied in the transaction. Without $5,000 for each such violation; and tries. Immigrants make a vital con- knowing the exchange rate fee that the (B) to a civil penalty of not more than company is charging, a consumer has $50,000, if the violations have occurred with tribution to the economic and social life of our Nation. little ability to gauge accurately the such frequency as to constitute a general full cost of sending a remittance. As business practice. In a recent study, Sending Money Sergio Bendixen, a leading researcher (2) DETERMINATION OF VIOLATIONS.—Any Home: Remittances to Latin America willful violation committed contempora- from the U.S., 2004, the Inter-American of public opinion and behavior, with a neously with respect to the social security Development Bank, IADB, found that specialty among Hispanic consumers, numbers of 2 or more individuals by means of nationwide over 60 percent of Latin testified before the Banking Com- mail, telecommunication, or otherwise, shall American immigrants send remit- mittee: ‘‘an overwhelming majority of be treated as a separate violation with re- tances. On average, each immigrant Hispanic immigrants are unaware that spect to each such individual. sends $240 at a time, 12 times per year. their families in Latin America receive (3) ENFORCEMENT PROCEDURES.—The provi- less money than what they send from sions of section 1128A of the Social Security Although these individual transactions are not large, they have constituted an the United States.’’ Further, a remit- Act (42 U.S.C. 1320a–7a), other than sub- tance sender cannot effectively shop sections (a), (b), (f), (h), (i), (j), (m), and (n) aggregate amount of over $30 billion between remittance transfer providers. and the first sentence of subsection (c) of from America to our Latin American The lack of basic information limits such section, and the provisions of sub- neighbors in this year alone. sections (d) and (e) of section 205 of such Act In my State of Maryland, we have the amount of competition in this mar- (42 U.S.C. 405) shall apply to a civil penalty 175,000 immigrants from Latin America ket. The legislation I am introducing action under this subsection in the same and the vast majority send remittances manner as such provisions apply to a penalty today extends basic consumer rights to back home. According to the IADB’s or proceeding under section 1128A(a) of such those who send remittances. Further, Act (42 U.S.C. 1320a–7a(a)), except that, for study 80 percent of Maryland’s immi- by requiring clear and understandable purposes of this paragraph, any reference in grants from Latin America send remit- disclosures to the remittance sender of section 1128A of such Act (42 U.S.C. 1320a–7a) tances. The typical sender remits an the cost of the remittance, thus pre- to the Secretary shall be deemed to be a ref- average of $245, 14 times per year—in erence to the Attorney General. senting to the consumer the full cost of other words, remittances are a month- sending money, the legislation will en- SEC. 11. FEDERAL INJUNCTIVE AUTHORITY. ly matter, with special gifts for Christ- In addition to any other enforcement au- hance competition, which in turn mas and Mother’s Day. should lead to an overall decrease in thority conferred under this Act or the The subject of remittances has been a the cost of sending remittances. As amendments made by this Act, the Federal major interest of mine for some time. Government shall have injunctive authority Sergio Bendixen testified to the Bank- As chairman of the Banking Com- with respect to any violation by a public en- ing Committee, ‘‘Full disclosure should mittee, in February, 2002, during the tity of any provision of this Act or of any unleash market forces that, hopefully, 107th Congress, I chaired what I under- amendments made by this Act. will result in a significant reduction in stand was the first Congressional hear- the cost of sending cash remittances.’’ By Mr. SARBANES (for himself, ing devoted exclusively to the subject. This legislation amends the Elec- Mr. CORZINE, Mrs. CLINTON, Mr. Dr. Manuel Orozco, a leading re- tronic Fund Transfer Act, EFTA, which AKAKA, Mr. BINGAMAN, Mr. searcher on remittances at the Inter- is the primary vehicle for providing SCHUMER, Mr. DODD, Mrs. American Dialogue, told the Com- basic protections to most persons who BOXER, Ms. MIKULSKI, and Mr. mittee that remittances from the U.S. engage in electronic transactions, to REID): to Latin America had grown substan- cover remittances, and to provide the S. 31. A bill to amend the Electronic tially—at that point to an estimated basic rights associated with EFTA to Fund Transfer Act to extend certain $20 billion in 2001—and that between 15 remittance transactions. The two most consumer protections to international to 20 percent—$3–$4 billion—was being important components of EFTA are the remittance transfers of funds origi- lost in fees and other transaction costs. requirement of full disclosure of fees nating in the United States, and for Since Dr. Orozco testified, remittances and the establishment of a process for other purposes; to the Committee on to Latin America have grown by $10 the resolution of transactional errors. Banking, Housing, and Urban Affairs. billion, or 50 percent, in just three These rights have been an integral part Mr. SARBANES. Mr. President, years, and continued growth is ex- of the regulations that govern our today I am introducing the Inter- pected. banking infrastructure since EFTA’s national Remittance Consumer Protec- That an estimated 15 percent to 20 enactment in 1978. The new legislation tion Act of 2005. This legislation ex- percent of the money sent in remit- will build upon the success of EFTA by tends basic consumer protection rights tances is diverted to fees and other extending these basic rights to remit- to those who send remittances, and it transaction costs, often hidden from tance senders. creates new avenues and incentives for the remittance sender, is evidence of The cornerstone of this legislation is federally insured financial institutions the abusive practices that exist in the the requirement that remittance trans- to provide remittance and basic bank- remittance market. There are two pri- fer providers make three key disclo- ing services to those who currently do mary factors that account for this sures to their consumers: One, the not use such institutions to send re- abuse. First, studies have shown that total cost of the remittance, rep- mittances. people who send remittances tend to be resented in a single dollar amount; The practice of sending remittances relatively low-wage earners, with mod- two, the total amount of currency that is not new. Immigrants to the United est formal education and relatively lit- will be sent to the designated recipient; States traditionally have used remit- tle experience in dealing with this and three, the promised date of deliv- tances to provide financial assistance country’s complex system of financial ery for the remittance. These disclo- to family members who remained in institutions. As a result they are sus- sures follow the core recommendations their country of origin, but the prac- ceptible to unscrupulous actors who of the Inter-American Development tice has been largely overlooked; it has can take advantage of them by charg- Bank, which in its publication, Remit- not been systematically studied and its ing all sorts of exorbitant fees, which tances to Latin America and the Carib- implications have not been fully under- are often hidden or misrepresented. bean: Goals and Recommendations,

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00115 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S222 CONGRESSIONAL RECORD — SENATE January 24, 2005 states: ‘‘Remittance institutions send that amount at no additional cost than in revenues from trade. The World should disclose in a fully transparent to the consumer or the designated re- Bank estimates that Mexico receives manner, complete information on total cipient, or 3. demonstrate to the con- more in remittances than it does in costs and transfer conditions, including sumer that there was no error. The foreign direct investment. Reducing all commissions and fees, foreign ex- Federal Reserve Board is also granted the costs of remittances is in the inter- change rates applied and execution the authority to establish additional est of both the United States and the time.’’ remedies for specific situations that countries that receive them. The total cost disclosure will include cannot be addressed by the three spe- Given the growing importance of an- the cost of the exchange rate conver- cific remedies that are described in the nual remittance flows, we must work sion as well as all up-front fees. This legislation. to increase their efficiency. One mech- single item will both give consumers a It is urgent that we continue to en- anism for accomplishing this objective, more accurate representation of the courage efforts to bring those who send and for increasing the ability of finan- cost of the remittance transaction and remittances into the financial main- cial institutions to offer remittances, allow consumers to more effectively stream. In his testimony to the Bank- is linking our banking infrastructure compare costs between remittance ing Committee, Dr. Orozco pointed out with the banking infrastructures of transfer providers. that, ‘‘About two-thirds of immigrants other nations. The Federal Reserve op- In order to calculate the cost of the cash their salary checks in check cash- erates an international automated exchange rate conversion, which is part ing stores that charge exorbitant fees. clearing house system, ACHi, that is of the total cost, the legislation re- Many of these same immigrants then currently linked to seven countries, of quires that the Treasury Department use what remains of their income to which the vast majority are highly de- post on its website, on a daily basis, send remittances back home. In this veloped trading partners that receive the exchange rate for all currencies. At common scenario, immigrants are pe- relatively low levels of remittances. present the Treasury receives this in- nalized in both receiving and sending The ACHi was recently connected to formation on a daily basis, but posts it their earnings.’’ In order to further Mexico, however, which will allow fi- only on a quarterly basis on the Treas- bank those who are currently nancial institutions throughout the ury website. By posting the informa- unbanked, the legislation that I am in- United States, especially those institu- tion daily, the Treasury could create a troducing today requires that the Fed- tions of smaller size, to provide remit- uniform and credible source for ex- eral banking agencies and the National tance services more easily and cheaply change rate information. Credit Union Administration provide to Mexico. This legislation directs the To calculate the cost to the con- guidelines to financial institutions re- Fed to take into account the impor- sumer of the exchange rate differen- garding the offering of low-cost remit- tance of remittance flows to other tial, remittance transfer providers will tance transfers and no-cost or low-cost countries as it continues to expand the use the difference between the previous basic consumer accounts. This legisla- ACHi system. Linking the ACHi to business day’s exchange rate, as posted tion also amends the Federal Credit countries that receive significant re- on the Treasury website, and the ex- Union Act to allow credit unions to mittances has the potential to result in change rate that the remittance trans- offer remittances and to cash checks great benefits to consumers who send fer provider offers. Using the exchange for persons who are in their field of remittances from America as well as to rate posted by the Treasury will ensure membership but are not credit union those who receive the remittances that the exchange rate cost is cal- members. The guidelines set out in the around the world. culated on a uniform base. When the legislation will help educate the finan- Finally, I am acutely aware of the exchange rate cost is disclosed to the cial services industry about the impor- need for better and more broadly avail- consumer as part of the total cost of tance and potential profitability of able financial literacy and education the remittance transfer, the consumer providing these services. for all Americans. I am pleased to re- will be better able to understand the The sending of remittances in a fair port that in the last Congress, as part full cost of the transaction and to shop and scrupulous manner is likely to be of the reauthorization of the Fair Cred- between different remittance transfer profitable for the institution that pro- it Reporting Act, we established a providers. vides the remittance service, and in- Presidential Financial Literacy and In addition to fee disclosure require- deed we have begun to see aggressive Education Commission, which is ments, this legislation establishes an moves into the remittance market by charged with developing a national error resolution mechanism so that many of the largest banking institu- strategy to promote financial literacy consumers whose remittance trans- tions. Individuals who send remit- and education. The Act addresses the actions experience an error have a fair, tances but are currently unbanked rep- issue of remittances by including in open, and expedient process through resent an expanded and profitable cus- the Commission’s work a focus on in- which they may resolve those errors tomer base for financial institutions. creasing the ‘‘awareness of the par- with the institution that conducted the By its very nature, the issues in- ticular financial needs and financial flawed transaction. This basic right is volved in sending remittances affect transactions, such as the sending of re- already afforded to consumers who are both the United States and other na- mittances, of consumers who are tar- protected by EFTA, and now this right tions. As Professor Susan Martin of geted in multilingual financial literacy will be extended to cover consumers Georgetown University, who also testi- and education programs.’’ The legisla- who send remittances as well. Further, fied at our hearing, told the Banking tion that I am introducing today builds the legislation establishes an error res- Committee: ‘‘Until relatively recently, on that framework by instructing the olution mechanism for remittance researchers and policy makers tended bank and credit union regulators to transfer errors that is responsive to the to dismiss the importance of remit- work with the Commission to specifi- different types of errors that can occur tances or emphasize only their nega- cally increase the financial education in a remittance transaction and is re- tive aspects . . . but recent work on re- efforts that target those persons who flective of the unique characteristics of mittances show a far more complex and send remittances. the remittance market and its partici- promising picture. . . . Experts now Millions of Americans send remit- pants. recognize that remittances have far tances to family members around the Under this legislation, a consumer greater positive impact on commu- world, for a total far exceeding the $30 has one year from the date that the re- nities in developing countries than pre- billion that goes to Latin America mittance transfer company promised viously acknowledged.’’ In fact, the alone. Yet almost all of these trans- to deliver the money to notify the com- size of the remittance market is such actions take place without the basic pany that an error has occurred. The that for six Central American and Car- consumer rights and protections that company is then required to resolve ibbean nations—Nicaragua, Haiti, El apply to other electronic transfers. the error within 90 days. To resolve the Salvador, Honduras, Guyana and Ja- Consumers who send remittances are error, the company must either 1. re- maica—remittances constitute more often immigrants and workers who fund the full amount of the remittance than 10 percent of GDP; Haiti and Ja- earn modest wages, who are not aware that was not properly transferred, 2. re- maica receive more in remittances of the full costs of each remittance,

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00116 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S223 and as a practical matter have no way ‘‘(1) IN GENERAL.—Each remittance transfer remittance transfer provider shall, as appli- of finding out, and, as a consequence, provider shall make disclosures to con- cable to the error and as designated by the in the aggregate pay billions of dollars sumers, as specified by this section and aug- consumer— in costs and hidden fees. They do not mented by regulation of the Board. ‘‘(i) refund to the consumer the total ‘‘(2) SPECIFIC DISCLOSURES.—In addition to have available to them an established amount of funds tendered by the consumer in any other disclosures applicable under this connection with the remittance transfer procedure for resolving transactional title, a remittance transfer provider shall which was not properly transmitted; errors. This legislation rectifies this clearly and conspicuously disclose, in writ- ‘‘(ii) make available to the designated re- situation by extending to remittances ing and in a form that the consumer may cipient, without additional cost to the des- the basic consumer rights established keep, to each consumer requesting a remit- ignated recipient or to the consumer, the in EFTA. The bill also contains provi- tance transfer— amount appropriate to resolve the error; sions that, when implemented, will ‘‘(A) at the time at which the consumer ‘‘(iii) provide such other remedy, as deter- allow more insured financial institu- makes the request, and prior to the con- mined appropriate by rule of the Board for tions to provide remittance services— sumer making any payment in connection the protection of consumers; or with the transfer— ‘‘(iv) demonstrate to the consumer that and potentially at lower costs to con- ‘‘(i) the total amount of currency that will sumers. The bill contains important there was no error. be required to be tendered by the consumer ‘‘(2) RULES.—The Board shall establish, by provisions to help bring the in connection with the remittance transfer; rule, clear and appropriate standards for re- unbanked—men and women without an ‘‘(ii) the amount of currency that will be mittance transfer providers with respect to account at a bank or credit union into sent to the designated recipient of the remit- error resolution relating to remittance the financial mainstream. Taken to- tance transfer, using the values of the cur- transfers, to protect consumers from such er- gether, these measures will increase rency into which the funds will be ex- rors. transparency, competition and effi- changed; ‘‘(d) APPLICABILITY OF OTHER PROVISIONS ciency in the remittance market, while ‘‘(iii) the total remittance transfer cost, OF LAW.— identified as the ‘Total Cost’; and helping to bring more Americans into ‘‘(1) APPLICABILITY OF TITLE 18 AND TITLE 31 ‘‘(iv) an itemization of the charges in- PROVISIONS.—A remittance transfer provider the financial mainstream. cluded in clause (iii), as determined nec- may only provide remittance transfers if A broad range of community, civil essary by the Board; and such provider is in compliance with the re- rights, and consumer groups have en- ‘‘(B) at the time at which the consumer quirements of section 5330 of title 31, United dorsed this legislation including the makes payment in connection with the re- States Code, and section 1960 of title 18, National Council of La Raza, the Mexi- mittance transfer, if any— United States Code, as applicable. can American Legal Defense and Edu- ‘‘(i) a receipt showing— ‘‘(2) APPLICABILITY OF THIS TITLE.—A re- cational Fund, the League of United ‘‘(I) the information described in subpara- mittance transfer that is not an electronic graph (A); Latin American Citizens, the Leader- fund transfer, as defined in section 903, shall ‘‘(II) the promised date of delivery; not be subject to any of sections 905 through ship Conference on Civil Rights, United ‘‘(III) the name and telephone number or Farm Workers of America, the Farm- 913. A remittance transfer that is an elec- address of the designated recipient; and tronic fund transfer, as defined in section worker Justice Fund, the NAACP, Casa ‘‘(ii) a notice containing— 903, shall be subject to all provisions of this de Maryland, the National Federation ‘‘(I) information about the rights of the title that are otherwise applicable to elec- of Filipino American Associations, the consumer under this section to resolve er- tronic fund transfers under this title. Asian Pacific American Labor Alli- rors; and ‘‘(3) RULE OF CONSTRUCTION.—Nothing in ance, National Asian Pacific American ‘‘(II) appropriate contact information for this section shall be construed— Legal Consortium, Consumers Union, the remittance transfer provider and its ‘‘(A) to affect the application to any trans- State licensing authority and Federal or Consumer Federation of America, the action, to any remittance provider, or to any State regulator, as applicable. other person of any of the provisions of sub- National Consumer Law Center, the ‘‘(3) EXEMPTION AUTHORITY.—The Board National Community Reinvestment Co- chapter II of chapter 53 of title 31, United may, by rule, and subject to subsection States Code, section 21 of the Federal De- alition, the Center for Responsible (d)(3), permit a remittance transfer pro- posit Insurance Act (12 U.S.C. 1829b), or Lending, U.S. PIRG, ACORN, Wood- vider— chapter 2 of title I of Public Law 91–508 (12 stock Institute, and the National Asso- ‘‘(A) to satisfy the requirements of para- U.S.C. 1951–1959), or any regulations promul- ciation of Consumer Advocates. The graph (2)(A) orally if the transaction is con- gated thereunder; or Credit Union National Association and ducted entirely by telephone; ‘‘(B) to cause any fund transfer that would the World Council of Credit Unions, ‘‘(B) to satisfy the requirements of para- not otherwise be treated as such under para- graph (2)(B) by mailing the documents re- both of whom provide remittance serv- graph (2) to be treated as an electronic fund quired under such paragraph to the con- transfer, or as otherwise subject to this title, ices, have also endorsed this legisla- sumer not later than 1 business day after the tion. for the purposes of any of the provisions re- date on which the transaction is conducted, ferred to in subparagraph (A) or any regula- I ask unanimous consent that the if the transaction is conducted entirely by tions promulgated thereunder. text of International Remittance Con- telephone; and ‘‘(e) PUBLICATION OF EXCHANGE RATES.— sumer Protection Act be printed in the ‘‘(C) to satisfy the requirements of sub- The Secretary of the Treasury shall make RECORD. paragraphs (A) and (B) of paragraph (2) with available to the public in electronic form, There being no objection, the bill was 1 written disclosure, but only to the extent not later than noon on each business day, ordered to be printed in the RECORD, as that the information provided in accordance the dollar exchange rate for all foreign cur- follows: with paragraph (2)(A) is accurate at the time rencies, using any methodology that the Sec- at which payment is made in connection retary determines appropriate, which may S. 31 with the subject remittance transfer. include the methodology used pursuant to Be it enacted by the Senate and House of Rep- ‘‘(b) FOREIGN LANGUAGE DISCLOSURES.—The section 613(b) of the Foreign Assistance Act resentatives of the United States of America in disclosures required under this section shall of 1961 (22 U.S.C. 2363(b)). Congress assembled, be made in English and in the same lan- ‘‘(f) AGENTS AND SUBSIDIARIES.—A remit- SECTION 1. SHORT TITLE. guages principally used by the remittance tance transfer provider shall be liable for This Act may be cited as the ‘‘Inter- transfer provider, or any of its agents, to ad- any violation of this section by any agent or national Remittance Consumer Protection vertise, solicit, or market, either orally or in subsidiary of that remittance transfer pro- Act of 2005’’. writing, at that office, if other than English. vider. SEC. 2. TREATMENT OF REMITTANCE TRANS- ‘‘(c) REMITTANCE TRANSFER ERRORS.— ‘‘(g) DEFINITIONS.—As used in this section— FERS. ‘‘(1) ERROR RESOLUTION.— ‘‘(1) the term ‘exchange rate fee’ means the (a) IN GENERAL.—The Electronic Fund ‘‘(A) IN GENERAL.—If a remittance transfer difference between the total dollar amount Transfer Act (15 U.S.C. 1693 et seq.) is amend- provider receives oral or written notice from transferred, valued at the exchange rate of- ed— the consumer within 365 days of the prom- fered by the remittance transfer provider, (1) in section 902(b), by inserting ‘‘and re- ised date of delivery that an error occurred and the total dollar amount transferred, val- mittance’’ after ‘‘electronic fund’’; with respect to a remittance transfer, in- ued at the exchange rate posted by the Sec- (2) by redesignating sections 918, 919, 920, cluding that the full amount of the funds to retary of the Treasury in accordance with and 921 as sections 919, 920, 921, and 922, re- be remitted was not made available to the subsection (e) on the business day prior to spectively; and designated recipient in the foreign country, the initiation of the subject remittance (3) by inserting after section 917 the fol- the remittance transfer provider shall re- transfer; lowing: solve the error pursuant to this subsection. ‘‘(2) the term ‘remittance transfer’ means ‘‘SEC. 918. REMITTANCE TRANSFERS. ‘‘(B) REMEDIES.—Not later than 90 days the electronic (as defined in section 106(2) of ‘‘(a) DISCLOSURES REQUIRED FOR REMIT- after the date of receipt of a notice from the the Electronic Signatures in Global and Na- TANCE TRANSFERS.— consumer pursuant to subparagraph (A), the tional Commerce Act (15 U.S.C. 7006(2)))

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00117 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S224 CONGRESSIONAL RECORD — SENATE January 24, 2005 transfer of funds at the request of a con- no-cost or low-cost basic consumer accounts, This legislation does two simple—yet sumer located in any State to a person in an- as well as agency services to remittance critical—things. The ENRON Act other country that is initiated by a remit- transfer providers. would amend the Federal Power Act to tance transfer provider, whether or not the (b) CONTENT OF GUIDELINES.—Guidelines provided to financial institutions under this put in place a broad prohibition on all consumer is an account holder of the remit- manipulative practices in electricity tance transfer provider or whether or not the section shall include— remittance transfer is also an electronic (1) information as to the methods of pro- markets—rather than just round-trip fund transfer, as defined in section 903; viding remittance transfer services; trading, as included in last year’s com- ‘‘(3) the term ‘remittance transfer pro- (2) the potential economic opportunities in prehensive energy bill; and it would vider’ means any person or financial institu- providing low-cost remittance transfers; and specify that electricity rates resulting tion that provides remittance transfers on (3) the potential value to financial institu- from manipulative practices are not behalf of consumers in the normal course of tions of broadening their financial bases to just and reasonable under the Federal its business, whether or not the consumer is include persons that use remittance trans- Power Act. an account holder of that person or financial fers. Many of my colleagues are, by now, institution; (c) ASSISTANCE TO FINANCIAL LITERACY COMMISSION.—The Secretary of the Treasury familiar with the provisions of this leg- ‘‘(4) the term ‘State’ means any of the sev- islation, as I have often described the eral States, the Commonwealth of Puerto and each agency referred to in subsection (a) Rico, the District of Columbia, and any ter- shall, as part of their duties as members of circumstances that led me to propose ritory or possession of the United States; the Financial Literacy and Education Com- it. While the Senate has been consid- and mission, assist that Commission in improv- ering comprehensive energy legislation ‘‘(5) the term ‘total remittance transfer ing the financial literacy and education of over the past few years, various inves- cost’ means the total cost of a remittance consumers who send remittances. tigations have unearthed Enron’s transfer expressed in dollars, including all SEC. 6. STUDY AND REPORT ON REMITTANCES. ‘‘smoking gun’’ memos—detailing the fees charged by the remittance transfer pro- (a) STUDY.—The Comptroller General of company’s schemes to drive up elec- the United States shall conduct a study and vider, including the exchange rate fee.’’. tricity prices—and other evidence lead- (b) EFFECT ON STATE LAWS.—Section 919 of analysis of the remittance transfer system, including an analysis of its impact on con- ing the Federal Energy Regulatory the Electronic Fund Transfer Act (12 U.S.C. Commission (FERC) to conclude that 1693q) is amended— sumers. (b) AREAS OF CONSIDERATION.—The study (1) in the first sentence, by inserting ‘‘or market manipulation was ‘‘epidemic’’ conducted under this section shall include, remittance transfers (as defined in section in western markets during 2000–2001. to the extent that information is available— 918)’’ after ‘‘transfers’’; and Recently, even more information—in- (1) an estimate of the total amount, in dol- (2) in the fourth sentence, by inserting ‘‘, cluding audio files detailing Enron lars, transmitted from individuals in the or remittance transfer providers (as defined traders’ conversations—has come to United States to other countries, including in section 918), in the case of remittance per country data, historical data, and any light. Meanwhile, the energy crisis con- transfers,’’ after ‘‘financial institutions’’. available projections concerning future re- tinues to take a serious toll on Amer- SEC. 3. FEDERAL CREDIT UNION ACT AMEND- mittance levels; ican consumers and businesses: it’s MENT. (2) a comparison of the amount of remit- been estimated that, as a result, the Paragraph (12) of section 107 of the Federal tance funds, in total and per country, to the West has lost $35 billion in domestic Credit Union Act (12 U.S.C. 1757(12)) is amount of foreign trade, bilateral assistance, amended to read as follows: economic product—in other words, a 1.5 and multi-development bank programs in- ‘‘(12) in accordance with regulations pre- percent decline in productivity and a volving each of the subject countries; scribed by the Board— total loss of 589,000 jobs. Adding insult (3) an analysis of the methods used to ‘‘(A) to provide remittance transfers, as de- to injury, Enron has now sued a num- remit the funds, with estimates of the fined in section 918(h) of the Electronic Fund amounts remitted through each method and ber of utilities throughout the coun- Transfer Act, to persons in the field of mem- descriptive statistics for each method, such try—for almost a $1 billion—attempt- bership; and as market share, median transaction size, ing to collect penalty charges on in- ‘‘(B) to cash checks and money orders for and cost per transaction, including flated contracts, cancelled when the persons in the field of membership for a through— company went bankrupt. In essence, fee;’’. (A) depository institutions; Enron is asking the same consumers it SEC. 4. AUTOMATED CLEARINGHOUSE SYSTEM. (B) postal money orders and other money gouged to pay yet again. (a) EXPANSION OF SYSTEM.—The Board of orders; As I have discussed on the Senate Governors of the Federal Reserve System (C) automatic teller machines; floor many times, the Western market shall work with the Federal reserve banks to (D) wire transfer services; and expand the use of the automated clearing- (E) personal delivery services; meltdown of 2000–2001 has had a pro- house system for remittance transfers to for- (4) an analysis of advantages and disadvan- found impact on my state’s economy, eign countries, with a focus on countries tages of each remitting method listed in sub- the pocketbooks and economic well- that receive significant remittance transfers paragraphs (A) through (E) of paragraph (3); being of my constituents—too many of from the United States, based on— (5) an analysis of the types and specificity whom have had to make the choice be- (1) the number, volume, and sizes of such of disclosures made by various types of re- tween keeping their heat and lights on transfers; mittance transaction providers to consumers and buying food, paying rent, and pur- (2) the significance of the volume of such who send remittances; and transfers, relative to the external financial chasing prescription drugs. In some (6) if reliable data are unavailable, rec- parts of Washington state, utility dis- flows of the receiving country; and ommendations concerning options for Con- (3) the feasibility of such an expansion. gress to consider to improve the state of in- connection rates have risen more than (b) REPORT TO CONGRESS.—Not later than formation on remittances from the United 40 percent. People just can’t pay their 180 days after the date of enactment of this States. utility bills. Act, and on April 30 biannually thereafter, (c) REPORT TO CONGRESS.—Not later than 1 As my colleagues can imagine, what the Board of Governors of the Federal Re- year after the date of enactment of this Act, we have seen and heard since the serve System shall submit a report to the the Comptroller General shall submit a re- height of the crisis—as we have learned Committee on Banking, Housing, and Urban port to the Committee on Banking, Housing, about the market manipulation and Affairs of the Senate and the Committee on and Urban Affairs of the Senate and the fraud that took place in the Western Financial Services of the House of Rep- Committee on Financial Services of the resentatives on the status of the automated House of Representatives on the results of market, while Enron energy traders clearinghouse system and its progress in the study conducted under this section. laughed about the plight of ‘‘Grandma complying with the requirements of this sec- Millie’’—has added tremendous insult tion. By Ms. CANTWELL (for herself, to substantial economic injury. More- SEC. 5. EXPANSION OF FINANCIAL INSTITUTION Mr. BINGAMAN, Mrs. FEINSTEIN, over, the Western crisis has brought to PROVISION OF REMITTANCE TRANS- Mrs. MURRAY, and Mr. FEIN- the forefront a number of very impor- FERS. GOLD): tant policy questions about the kind of (a) PROVISION OF GUIDELINES TO INSTITU- S. 33. A bill to prohibit energy mar- behavior that will be tolerated in our TIONS.—Each of the Federal banking agen- ket manipulation; to the Committee on Nation’s electricity markets, as the cies (as defined in section 3 of the Federal Deposit Insurance Act) and the National Energy and Natural Resources. Federal Energy Regulatory Commis- Credit Union Administration shall provide Ms. CANTWELL. Mr. President, sion has continued to pursue its ‘‘re- guidelines to financial institutions under the today I am introducing the Electricity structuring’’ agenda. jurisdiction of the agency regarding the of- Needs Rules and Oversight Now, or I believe we need strong leadership fering of low-cost remittance transfers and ENRON, Act. that will condemn the types of schemes

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00118 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S225 used by Enron traders—manipulation manipulated energy markets and Although the probability is slim, the tactics with infamous nicknames like gouged consumers. According to these United States, like all coastal nations, Get Shorty, Death Star and Ricochet. tapes, Enron traders celebrated when a is vulnerable to tsunamis. The threat We need to send a strong and unani- forest fire shut down a major trans- to the Pacific is greatest because of its mous message that these practices will mission line into California in 2000. relatively extensive seismic activity. not be tolerated in our nation’s elec- This shutdown cut power supplies and But while the threat is less in the At- tricity markets. Next, we need to raised energy prices. An energy trader lantic, it also does exist. Tsunamis agree—as a matter of policy—that the sang: ‘‘Burn, baby, burn. That’s a beau- early in the last century struck coastal victims of these schemes should not tiful thing.’’ These taped conversations Newfoundland and regions of the Carib- have to pay the inflated power prices also provide evidence that Enron made bean including Puerto Rico, and the resulting from market manipulation. secret pacts with power producers, and U.S. Virgin Islands. The ENRON Act will make these com- Enron traders deliberately drove up As events last month in the Indian monsense principles the law of the prices by ordering power plants to shut Ocean have shown, a large tsunami can land. down. The traders also brag about their be catastrophic when it catches a I would like to thank the original co- ability to manipulate markets and coastal population unwarned and un- sponsors of this legislation, the Sen- steal money from the ‘‘grandmothers prepared. Existing technology, how- ator from New Mexico, Mr. BINGAMAN, of California,’’ who one trader called ever, can detect tsunamis and with the the Senator from California, Mrs. FEIN- ‘‘Grandma Millie.’’ The arrogance of right forecasting models, be used to STEIN, the senior Senator from Wash- these traders shocks the conscience. It predict potential landfall of a tsunami ington, Mrs. MURRAY, and the junior also demonstrates the need for Con- and provide the warning needed for Senator from Wisconsin, Mr. FEINGOLD, gress to protect consumers from energy those in the path of the destructive for joining me today. It is our hope market manipulation. We cannot let waves. that the Senate will move toward swift the market abuses that took place dur- The United States has been a leader passage of the ENRON Act. ing the Western energy crisis of 2000 in developing instrumentation for de- Mr. President, I ask unanimous con- happen again. tecting tsunamis and developing fore- sent that a copy of the legislation be S. 2105 requires the Federal Energy casting models used for predicting tsu- printed in the RECORD. Regulatory Commission to prohibit the nami landfall. Such technology is used There being no objection, the bill was use of manipulative practices like in two existing tsunami warning cen- ordered to be printed in the RECORD, as these that put at risk consumers and ters, one in Alaska and one in Hawaii. follows: the reliability of the transmission grid. The recent tsunami in South Asia has S. 33 We learned from this crisis that elec- alerted the world to the dangers of Be it enacted by the Senate and House of Rep- tricity markets need close government these destructive waves, and has resentatives of the United States of America in oversight to ensure that companies do caused many of us to seek ways that Congress assembled, not engage in risky and deceptive trad- the United States can help the world SECTION 1. SHORT TITLE. ing schemes leading to soaring energy avoid such tragic loss again. This Act may be cited as the ‘‘Electricity prices and their own possible financial The legislation I am introducing Needs Rules and Oversight Now (ENRON) failure. In both cases, consumers—the today builds on the existing United Act’’. people who depend upon the electricity States model. It authorizes funding SEC. 2. PROHIBITION OF ENERGY MARKET MA- these companies generate or trade—are that will enable us to expand our exist- NIPULATION. the losers. ing capabilities, completes our net- (a) PROHIBITION.—Part II of the Federal The Senate recently went on record work of seismic and tsunami sensors, Power Act (16 U.S.C. 824 et seq.) is amended in support of barring abusive energy and directs us to work in partnership by adding at the end the following: market practices when it approved an with other nations as needed to build ‘‘SEC. 215. PROHIBITION OF MARKET MANIPULA- TION. amendment to the fiscal year 2004 agri- additional centers and the necessary ‘‘It shall be unlawful for any person, di- cultural appropriations bill offered by network for disseminating warnings to rectly or indirectly, to use or employ, in con- Senator CANTWELL. I am disappointed the appropriate local officials. Similar nection with the purchase or sale of electric this language was stripped from the efforts are being put forth by Senators energy or the purchase or sale of trans- omnibus spending bill. These necessary STEVENS and INOUYE as leaders of the mission services subject to the jurisdiction protections were also omitted from the Commerce Committee, and by the Ad- of the Commission, any manipulative or de- final energy conference report and the ministration. I look forward to work- ceptive device or contrivance in contraven- revised energy bill we voted on in April ing with them to enact legislation tion of such regulations as the Commission may promulgate as appropriate in the public 2004. which, at relatively low cost, will allow interest or for the protection of electric rate- We need to send a clear message to us to partner with other nations and payers.’’. the energy industry that this behavior complete a global detection and warn- (b) RATES RESULTING FROM MARKET MANIP- will not be tolerated, and we must ing system. This will help ensure that ULATION.—Section 205(a) of the Federal show consumers that we will protect the kind of tragedy that befell the na- Power Act (16 U.S.C. 824d(a)) is amended by them from energy market manipula- tions of the Indian Ocean region never inserting after ‘‘not just and reasonable’’ the tion. I encourage my fellow colleagues happens again. following: ‘‘or that result from a manipula- to pass this legislation. I ask unanimous consent that the tive or deceptive device or contrivance’’. text of the bill be printed in the Mr. President, I am proud to cospon- By Mr. LIEBERMAN: RECORD. sor the Energy Needs Regulatory Over- S. 34. A bill to provide for the devel- There being no objection, the bill was sight Now or ENRON Act of 2005, S. 33, opment of a global tsunami detection ordered to be printed in the RECORD, as introduced today by Senator CANT- and warning system, to improve exist- follows: WELL. Last summer the release of ing communication of tsunami warn- S. 34 audiotapes of Enron traders gloating ings to all potentially affected nations, Be it enacted by the Senate and House of Rep- about their ability to manipulate en- and for other purposes; to the Com- resentatives of the United States of America in ergy markets shocked the Nation. As mittee on Commerce, Science, and Congress assembled, more tapes surface and energy prices Transportation. SECTION. 1. SHORT TITLE. continue to rise, the need for the Sen- Mr. LIEBERMAN. Mr. President, I This Act may be cited as the ‘‘Global Tsu- ate to pass the ENRON Act has never rise today to introduce legislation that nami Detection and Warning System Act of been more clear. would close the gaps in our present tsu- 2005’’. A public utility near Seattle, which nami warning system and establish a SEC. 2. DEVELOPMENT AND DEPLOYMENT OF is trying to get back the money it lost global network that will give all the TSUNAMI SENSORS. (a) RESPONSIBILITIES OF SECRETARY OF to Enron’s unscrupulous energy trad- world’s coastal communities a chance COMMERCE.—The Secretary of Commerce ing practices, received the tapes from to evacuate—much like the hurricane shall— the Justice Department. These tapes and typhoon warning system works (1) identify deficiencies in the existing sys- confirm what we all suspected: Enron today across international boundaries. tem of worldwide seismic stations that can

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00119 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S226 CONGRESSIONAL RECORD — SENATE January 24, 2005 identify in real or near real time potentially section has been reached within 90 days after Mr. CONRAD. Mr. President, I rise tsunamigenic earthquakes in any location in the date of the enactment of this Act. today to introduce the Wind Energy the Pacific, Atlantic, or Indian Oceans and SEC. 4. NETWORK OF NATIONS POTENTIALLY AF- Production Tax Credit Extension Act. associated seas; FECTED BY TSUNAMIS. This legislation is very important for (2) work with the Secretary of State to en- (a) REQUIREMENT FOR STRATEGY.—The Sec- the expansion and competitiveness of list international cooperation in deploying retary of State, in consultation with the seismic sensors to eliminate such defi- Secretary of Commerce, shall prepare and the wind energy sector in North Da- ciencies; implement a comprehensive strategy to kota and the rest of the country. (3) work with the Secretary of the Interior, achieve the following objectives: There should be no doubt that the through the Director of the United States (1) Identify all coastal nations that have wind energy production tax credit, Geological Survey to identify and implement the potential to be adversely affected by PTC, is vital for the continued growth any additions or improvements to the United tsunamis, particularly the nations that bor- of the wind energy sector. The PTC was States’ maintained network of seismic sta- der the Pacific, Indian, and Atlantic Oceans, enacted in 1992. Delays in renewing the tions that are necessary to improve real and associated seas. time or near real time signal acquisition and PTC have caused a boom-and-bust (2) Identify appropriate organizations, cycle in the development of new wind processing capability for detection of poten- agencies, and contacts within the govern- tially tsunamigenic seismic events. ments of those nations for disseminating projects. These delays of the credit in- (4) identify tsunami sensors, such as those tsunami warnings by working with— hibit the development of a favorable developed by the National Oceanic and At- (A) the United Nations Educational, Sci- and secure investment climate for wind mospheric Administration and deployed entific, and Cultural Organization; and projects and are also economically under its Deep Ocean Assessment and Report (B) other appropriate organizations. damaging as companies involved in of Tsunamis Project, or other appropriate (3) Develop, with cooperating nations and wind energy lay off workers or put off ocean-based sensors, that can be deployed to their agencies and organizations, a structure detect potential tsunamis generated by any hiring until the credit is extended. for a Global Tsunami Warning System that Given the long lead time required to type of disturbance, including earthquake, has an appropriate number of regional oper- underwater landslide, above water landslide, ational headquarters. develop new wind projects, short-term eruption of an explosive volcano, and meteor (4) Identify, with cooperating nations and extensions of the credit do not give impact; their agencies and organizations, and estab- companies enough certainty to expand (5) identify the number and location of lish an appropriate chain of command struc- wind energy production. We need a such sensors that must be deployed through- ture to ensure that warnings of potential or long-term extension to provide that out the Atlantic, Indian, and Pacific Oceans, approaching tsunamis are directed to the ap- certainty. and associated seas, and any other bodies of propriate contacts in potentially affected Wind energy is an important compo- water of concern, to provide a system offer- countries in a timely manner through the nent of our Nation’s energy portfolio. ing complete global coverage for detection of Global Tsunami Warning System network. a tsunami, taking into consideration and co- (5) Implement, with cooperating nations Wind is a clean source of energy that ordinating with any regional systems in and their agencies and organizations, a tsu- fosters economic development in rural place or under development through other nami forecasting system that includes tsu- communities. Combined with other do- nations in the affected regions; nami early detection and monitoring instru- mestic sources of energy, the use of (6) procure and deploy such sensors; mentation integrated with modeling tech- wind energy helps reduce our depend- (7) establish the measurement system, nology essential to producing real-time tsu- ence on foreign sources of energy. In forecast system, and communication system nami forecasts. addition, advanced wind energy tech- and infrastructure needed to receive and (6) Utilize the forecasts developed under nology could one day be an important process the signals generated by such tsu- the tsunami forecasting system to form ap- nami sensors, by building on existing infra- propriate warnings, and rapidly disseminate component of a hydrogen-based econ- structure at existing Centers of the National such warnings to potentially affected na- omy. In order to ensure that wind Oceanic and Atmospheric Administration, tions. power remains competitive with other such as the Pacific Tsunami Warning Center (7) Develop an appropriate warning com- fuels, passage of a longer-term wind and West Coast and Alaska Tsunami Center; munications system involving telephone, PTC is necessary. and Internet, radio, fax, and other appropriate In my home State, a long-term ex- (8) disseminate tsunami forecasts and means to convey warnings as rapidly as pos- tension of the wind PTC is especially warnings as necessary to all potentially af- sible to all potentially affected nations. fected nations. important. North Dakota is ranked (8) Work in partnership with the nations number one in wind energy potential. (b) REPORT TO CONGRESS.—Not later than identified as described in paragraph (1), as 180 days after the date of the enactment of needed, to develop, establish, and maintain As in other parts of the country, reli- this Act, the Secretary of Commerce shall appropriate educational and response plan- ance on Congress to re-extend the wind submit to Congress a report on the progress ning partnerships to ensure that tsunami PTC prevents companies tied to wind made in carrying out the requirements of warnings are properly interpreted by offi- energy from adding workers and nego- subsection (a). cials in other nations and that coastal com- tiating long-term contracts. In general SEC. 3. INTERNATIONAL CONFERENCE ON GLOB- munities respond appropriately to tsunami terms, this uncertainty inflicts eco- AL TSUNAMI DETECTION AND WARN- warnings. nomic costs on communities and cer- ING. (9) Seek funding assistance from partici- tain manufacturers. For North Dakota, (a) SENSE OF CONGRESS ON CONVENING CON- pating nations to fund the sensor systems FERENCE.—It is the sense of Congress that identified under section 4 and the ongoing a long-term wind PTC extension is the President, in consultation with the lead- operation and maintenance of such systems. vital to continue the development of ers of nations described in section 4(a)(1), (b) REPORT TO CONGRESS.—Not later than wind energy resources that are second should undertake to convene, within 180 days 180 days after the date of the enactment of to none. after the date of the enactment of this Act, this Act, the Secretary of State shall submit The bill I am introducing today will an international conference on global tsu- to Congress a report on the strategy required extend the wind energy PTC, indexed nami detection and warning for the purposes under subsection (a). The report shall in- to inflation, for five years. I believe of— clude the following: that Congress has the responsibility to (1) supporting the common objective of (1) The strategy. such nations of preventing or reducing the (2) The progress made on implementing the ensure that the wind energy sector in toll of human loss from future tsunami-re- strategy. this country grows at its full potential. lated natural disasters in the Pacific, Indian, SEC. 5. AUTHORIZATION OF APPROPRIATIONS. In my view, wind is a crucial part of and Atlantic Oceans and associated seas; and Funds are hereby authorized to be appro- our country’s energy portfolio and en- (2) seeking international agreement on the priated to carry out this Act as follows: ergy security. This bill will help the most effective means for deploying and fund- (1) For fiscal year 2005, $30,000,000. wind energy industry grow and remain ing a global tsunami detection and warning (2) For each of fiscal years 2006 through competitive with other types of energy. system. 2014, $7,500,000. I urge my colleagues to support this (b) SENSE OF CONGRESS ON ALTERNATIVE legislation. ACTION.—It is further the sense of Congress By Mr. CONRAD: that a conference described in subsection (a) S. 35. A bill to amend the Internal would not be necessary if, as determined by By Mr. INOUYE: the President after consultation with the Revenue Code of 1986 to extend the S. 36. A bill to amend title 10, United Secretary of State and the Secretary of Com- credit for production of electricity States Code, to recognize the United merce, satisfactory international agreement from wind; to the Committee on Fi- States Military Cancer Institute as an as described in paragraph (2) of that sub- nance. establishment within the Uniformed

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THE UNITED STATES MILITARY CAN- Since 1998, the American people have vention and early detection efforts, and CER INSTITUTE. bought over 588 million breast cancer for other purposes; to the Committee (a) ESTABLISHMENT.—Chapter 104 of title 10, stamps—raising $42.66 million for on Armed Services. United States Code, is amended by adding at breast cancer research. Mr. INOUYE. Mr. President, today I the end the following new section: The National Cancer Institute and introduce the United States Military ‘‘§ 2117. United States Military Cancer Insti- the Department of Defense have put Cancer Institute Research Collabo- tute these research dollars to good use by rative Act. This legislation would for- ‘‘(a) ESTABLISHMENT.—(1) There is a United funding novel and innovative research mally establish the United States Mili- States Military Cancer Institute in the Uni- versity. The Director of the United States in the area of breast cancer. tary Cancer Institute (USMCI), and Military Cancer Institute is the head of the Over a 7 year period, the Breast Can- support the collaborative augmenta- Institute. cer Stamp has demonstrated a very tion of research efforts in cancer epide- ‘‘(2) The Institute is composed of clinical sustained and committed customer miology, prevention and control. Al- and basic scientists in the Department of De- base. though the USMCI already exists as an fense who have an expertise in research, pa- Millions of Americans have bought informal collaborative effort, this bill tient care, and education relating to oncol- the stamps to honor loved ones with will formally establish the institution ogy and who meet applicable criteria for par- the disease, to highlight their own per- with a mission of providing for the ticipation in the Institute. ‘‘(3) The components of the Institute in- sonal battle with breast cancer or to maintenance of health in the military clude military treatment and research facili- promote general public awareness—in by enhancing cancer research and ties that meet applicable criteria and are hope of helping to find a cure. treatment, and studying the epidemio- designated as affiliates of the Institute. One cannot calculate in dollars and logical causes of cancer among various ‘‘(b) RESEARCH.—(1) The Director of the cents how the stamp has focused public ethnic groups. By formally establishing United States Military Cancer Institute awareness on this devastating disease the USMCI, it will be in a better posi- shall carry out research studies on the fol- and the need for additional research tion to unite military research efforts lowing: funding. with other cancer research centers. ‘‘(A) The epidemiological features of can- There is still so much more to do be- Cancer prevention, early detection, cer, including assessments of the carcino- genic effect of genetic and environmental cause this disease has far reaching ef- and treatment are significant issues for factors, and of disparities in health, inherent fects on our Nation: the military population, thus the or common among populations of various Breast cancer is the most commonly USMCI was organized to coordinate the ethnic origins. diagnosed cancer among women in the existing military cancer assets. The ‘‘(B) The prevention and early detection of United States, ranking second among USMCI has a comprehensive database cancer. cancer deaths in women after lung can- of its beneficiary population of 9 mil- ‘‘(C) Basic, translational, and clinical in- cer. lion people. The military’s nationwide vestigation matters relating to the matters In 2005, approximately 211,240 women tumor registry, the Automated Central described in subparagraphs (A) and (B). in the U.S. will get breast cancer. ‘‘(2) The research studies under paragraph About 40,410 women will die from the Tumor Registry, has acquired more (1) shall include complementary research on than 180,000 cases in the last 14 years, oncologic nursing. disease this year. and a serum repository of 30 million ‘‘(c) COLLABORATIVE RESEARCH.—The Direc- There are over two million women specimens from military personnel col- tor of the United States Military Cancer In- living today in the U.S. who have been lected sequentially since 1987. This pop- stitute shall carry out the research studies treated for breast cancer. ulation is predominantly Caucasian, under subsection (b) in collaboration with Though much less common, about African-American, and Hispanic. other cancer research organizations and en- 1,300 men in America are diagnosed The Director of the USMCI, Dr. John tities selected by the Institute for purposes with breast cancer each year. Potter, is a Professor of Surgery at the of the research studies. It is imperative that we extend the ‘‘(d) ANNUAL REPORT.—(1) Promptly after life of this stamp so that we can con- Uniformed Services University of the the end of each fiscal year, the Director of Health Sciences (USUHS). A highly tal- the United States Military Cancer Institute tinue to reach out to American women ented cancer epidemiologist, Dr. shall submit to the President of the Univer- and men who do not know of their can- Kangmin Zhu, has also been recruited sity a report on the results of the research cer and to those who are living with it. to lead the USMCI Prevention and Con- studies carried out under subsection (b). This legislation would extend the au- trol Programs. ‘‘(2) Not later than 60 days after receiving thorization of the Breast Cancer Re- The USMCI currently resides in the the annual report under paragraph (1), the search stamp for two additional years Washington, D.C., area, and its compo- President of the University shall transmit until December 31, 2007. nents are located at the National Naval such report to the Secretary of Defense and The stamp would continue to have a to Congress.’’. surcharge of up to 25 percent above the Medical Center, the Malcolm Grow (b) CLERICAL AMENDMENT.—The table of Medical Center, the Armed Forces In- sections at the beginning of such chapter is value of a first-class stamp with the stitute of Pathology, and the Armed amended by adding at the end the following surplus revenues going to breast cancer Forces Radiobiology Research Insti- new item: research. tute. There are more than 70 research ‘‘2117. United States Military Cancer Insti- Extending the Breast Cancer Re- workers, both active duty and Depart- tute.’’. search stamp does not affect any other ment of Defense civilian scientists, semi-postal proposals under consider- working in the USMCI. By Mrs. FEINSTEIN (for herself ation by the Postal Service. The USMCI intends to expand its re- and Mrs. HUTCHISON): We urge our colleagues to join us in search activities to military medical S. 37. A bill to extend the special passing this important legislation to centers across the Nation. Special em- postage stamp for breast cancer re- extend the Breast Cancer Research phasis will be placed on the study of search for 2 years; to the Committee on Stamp for another 2 years. genetic and environmental factors in Homeland Security and Governmental Thanks to breakthroughs in cancer carcinogenesis among the entire popu- Affairs. research, more and more people are be- lation, including Asian, Caucasian, Af- Mrs. FEINSTEIN. Mr. President, on coming cancer survivors rather than rican-American and Hispanic sub- behalf of Senator HUTCHISON and my- cancer victims. Every dollar we con- populations. self, I rise today to introduce legisla- tinue to raise will help save lives. Mr. President, I ask unanimous con- tion to reauthorize the tremendously I ask unanimous consent that the sent that the text of this bill be printed successful Breast Cancer Research text of the legislation be printed in the in the RECORD. Stamp for 2 additional years. RECORD.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00121 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S228 CONGRESSIONAL RECORD — SENATE January 24, 2005 There being no objection, the bill was that this is happening, recognizes that come into compliance—and that would ordered to be printed in the RECORD, as a one-size-fits-all solution doesn’t mean that no other city services could follows: work, and provides a framework to pro- be paid for. S. 37 tect public health, while at the same That kind of situation is clearly ri- Be it enacted by the Senate and House of Rep- time giving communities the flexi- diculous, and I will fight as long and as resentatives of the United States of America in bility they need to comply. hard as I can to find solutions to this Congress assembled, State officials in Nebraska estimate problem. SECTION 1. 2-YEAR EXTENSION OF POSTAGE it could cost communities $120 mil- Last year, I raised this issue with STAMP FOR BREAST CANCER RE- lion—$176 million to comply with the then-EPA Administrator Mike Leavitt. SEARCH. standard. Many communities, fearing Mike Leavitt is a Westerner—his folks Section 414(h) of title 39, United States in Utah are having some of the same Code, is amended by striking ‘‘2005’’ and in- that this regulation could bankrupt serting ‘‘2007’’. them, are considering dramatically problems. raising rates for drinking water to I discussed the issue with him. I will By Mr. NELSON of Nebraska (for cover the cost of new treatment and raise it with any successor of his who himself, Mr. DOMENICI, and Mr. equipment. Extending the deadline is is nominated to head the EPA. I will CRAIG): crucial for taxpayers and ratepayers keep raising this issue and looking for S. 41. A bill to amend the Safe Drink- throughout the country. solutions. The problem is that EPA bu- ing Water Act to exempt nonprofit This bill allows small communities reaucrats—who are so good at being small public water systems from cer- to adopt a locally supported public bureaucrats—think they know Idaho tain drinking water standards relating health policy as an alternative to the better than Idahoans do. Some of our to naturally occurring contaminants; one prescribed by EPA. In many com- Idaho communities have requested of to the Committee on Environment and munities, the rule can reasonably be EPA Region 10 that EPA exercise some Public Works. expected to more than double water flexibility with this standard. This is Mr. NELSON of Nebraska. Mr. Presi- rates on low-income families without flexibility that EPA has already incor- dent, today I am offering legislation improving the quality of their water in porated into its final agency rule on with Senator PETE DOMENICI and Sen- any appreciative manner. Our bill pro- the arsenic standard. Unfortunately, EPA bureaucrats are ator LARRY CRAIG to allow small rural vides a reasonable amount of time for doing what they are good at. They are communities more time to meet an on- our small communities to understand saying no to flexibility and hey, by the erous and financially burdensome and implement EPA’s requirements, way, Castleford, Idaho or New Plym- water quality regulation that is being without bankrupting the system. It is outh, Idaho—this won’t disadvantage imposed on local governments by the the least we should do. you economically as much as you say. Environmental Protection Agency. The Mr. CRAIG. Mr. President, I rise to That is what EPA says to the commu- bipartisan Rural Community Arsenic address an issue that has begun to nities of Idaho. We know better than Relief Act (RCARA) will amend the emerge and gain our attention in rural you. Safe Drinking Water Act to exempt America. This issue is an important Seeing that EPA cannot be reason- small rural communities with popu- one because it has the potential to dev- able, I have worked with my colleagues lation of up to ten thousand from the astate, economically, small cities and Senator NELSON of Nebraska and Sen- EPA’s strict requirement to limit ar- towns across the inter-mountain ator DOMENICI of New Mexico. Both of senic in drinking water to 10 parts per west—like in my State, of Idaho. their States have similar problems. billion by January 1, 2006. Currently The new Environmental Protection The product of our collaboration is a the allowable level of arsenic in drink- Agency drinking water standard of 10 bill that we introduced last year and ing water is 50 ppb. parts per billion for arsenic is some- are re-introducing today. The name of As a former governor who fought thing the current Administration in- this bill is the Rural Community Ar- against unfunded Federal mandates herited from the prior Administration senic Relief Act. While it may not pro- from Washington, I understand the im- and is now trying to implement. I vide all the relief that I would like to pact a policy such as this can have on would remind my colleagues, however, see, and it does not repeal the new ar- local budgets. that the new lowered arsenic standard senic standard—as I believe is merited Small rural communities simply was not universally supported in Con- by the science—this bill is a good com- don’t have the resources and tax base gress when it was proposed. promise and a good start. to meet the arsenic standard arbi- There were Senators—not many, but With this bill, we are trying to force trarily set by the EPA. This unfunded I was certainly one of them—that knew States—and in Idaho’s case, the EPA mandate is a strain on local govern- that the cost of complying with the since Idaho is what they call a ‘‘non- ment budgets and will drive up local new arsenic standard was going to crip- primacy state’’—to approve requests taxes. It is not right to ask the elected ple economically—was going to break from communities to delay their com- officials of our small communities to the back financially—of rural commu- pliance with the new arsenic standard. spend their limited funds on risks that nities and small towns across the west- The bill is straightforward, it is we are learning are not as dangerous as ern United States. vital, and it is needed. It will save they have been portrayed. This legisla- I fought this new standard on the some of these communities from bank- tion will allow local governments more floor of the Senate. I knew the costs ruptcy or from discontinuing essential time to plan for and absorb the costs of were crippling and the health benefit community services. Many other meeting the EPA’s standards for ar- was bogus. I also knew that the science States—other than Idaho, Nebraska, senic. to support the lower standard is being and New Mexico—face this same crisis. With each passing day it is increas- exposed as based on examples and sam- I implore my colleagues to learn about ingly evident that small communities ple populations that were very, very what their small communities are fac- will not be able to count on any imme- flawed. The science is now revealing ing, and to join with us in enacting diate federal assistance in converting that extrapolating from those sample this essential regulatory relief. their water systems to meet the new communities to the whole of the arsenic standard. This bipartisan bill United States was a very, very flawed By Mr. ALLEN (for himself, Mr. represents one means of giving more basis for the drinking water standard. NELSON of Florida, Mr. DEWINE, time to these communities, most of I fought this new standard, but I did Mr. NELSON of Nebraska, Mrs. which have lived with arsenic—a wide- not succeed. DOLE, Ms. MURKOWSKI, and Mr. ly distributed naturally occurring ele- There are communities now in Idaho VITTER). ment—for ages. that will not be able to come into com- S. 42. A bill to amend title 10, United Rural communities across America pliance with this new standard by the States Code, to increase the death gra- are grasping for solutions to comply time it takes effect. Some of these tuity payable with respect to deceased with the new arsenic standard. Many Idaho communities have estimated members of the Armed Forces, and for reach the same conclusion—it is just that it would take double or triple other purposes; to the Committee on too expensive. RCARA acknowledges their entire city budget, just to try to Armed Services.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00122 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S229 Mr. ALLEN. Mr. President, I rise to When I was bringing this issue up, I come. So when a soldier loses his or her bring to my colleagues’ attention a bill got an e-mail and many messages from life, even if it is a lower amount, the I introduced today called the Honoring people across the country. This one is money stops. That is why it is impera- the Fallen Soldiers and Families Act of from Mrs. Margaret Stubenhofer from tive that we in Congress raise the 2005, sharing the same views of Senator Springfield, VA, who wrote: death gratuity to a level that will take SESSIONS of Alabama, who has worked DEAR SENATOR ALLEN: On December 7, 2004, care of the immediate financial needs on this legislation, as well as many of our son Captain Mark Stubenhofer (U.S. of these families. us over the years, including my part- Army) was killed in action while serving in Some have questioned or critics may Iraq. He was shot by insurgents. Mark, who ner, Senator WARNER. This measure is argue that raising the death gratuity was born and raised in Springfield, VA, originally cosponsored by Senators leaves behind his wife (Patty, age 30) and 3 to $100,000 is too costly. I contend that 1 if you look at firefighters and police of- BILL NELSON, MIKE DEWINE, BEN NEL- small children (Lauren, 5 yrs, Justin, 2 ⁄2 yrs, SON, ELIZABETH DOLE, LISA MURKOWSKI, and Hope, 4 months). I am writing to you in ficers, these great citizens of our com- and DAVID VITTER. support of the proposed legislation to raise munities who are our warriors at Mr. President, as Americans, I be- the military survivor benefits. It is appalling home, saving lives from fires or in law lieve we need to do everything we can to me that our people, who also suffered a enforcement actions, they generally to make sure our men and women in great tragedy, are receiving millions of dol- get a death gratuity in the amount of uniform are provided with the most lars after their loved ones died on 9–11 . . . $50,000 to $100,000. In our Common- yet, dependents of military personnel killed technologically advanced armaments in action while bravely serving their country wealth of Virginia, a police officer or and equipment for their safety and in a foreign land receive only slightly more firefighter who loses his or her life in their security when they are protecting than $12,000 as a death gratuity and $100,000 the line of duty receives a $75,000 death our liberty. We also need to take care in insurance benefits. I am very much in gratuity. My proposal is to put some of the families of the soldiers who lose favor of these benefits being raised to a more logical symmetry between what our their lives, those who are killed in ac- reasonable level; and I ask you to continue warriors on the homefront—the police tion and on duty. We need to care more to support such action as to make this pos- officers and firefighters—get and what sible. In all good conscience, how can we pos- about their surviving families. sibly ask these young men and women to be our soldiers stationed at home and Currently, there are a number of ben- ready to die for their country . . . and then abroad get. efits that are provided to family mem- leave their survivors with almost nothing In addition, as long as we have an all- bers who lose a loved one while serving when their worst nightmare actually be- volunteer Army, we need to make sure our great Nation. Some of these bene- comes a reality? our soldiers know and their families fits include the Servicemen’s Group That is a good question. That is why know they have the best possible bene- Life Insurance policies, the Depend- I am introducing, with a number of my fits should the unthinkable happen. I ency and Indemnity Compensation Pro- Senate colleagues who are cospon- believe this legislation will help put gram, education benefits, and Govern- soring, the Honoring Our Fallen Sol- some of those worries at ease. What- ment housing. diers and Families Act of 2005. I am ever the amount may be, I guarantee However, there is one benefit I have glad this is getting a lot of support to each of my colleagues that any fam- been concerned with during my tenure from both sides of the aisle and leader- ily would rather have their loved one in the Senate. This is called the mili- ship. there at holidays and birthdays and an- tary death gratuity. It is a tax-exempt This legislation will raise the mili- niversaries than the $100,000, but there cash payment, currently at the amount tary death gratuity from $12,000 to is a big financial hole in their lives. of $12,000, which provides immediate fi- $100,000 for the families of those service There is also one that cannot be com- nancial compensation to families of men and women who have lost their pensated. But it is one that a grateful those service men and women who have lives serving our great Nation since Oc- Nation would want to provide. lost their lives serving our great Na- tober 1, 2001. The reason for October 1, I will close by quoting George Wash- tion. During the past 108th Congress, I 2001—the retroactivity—is that is when ington, who was one of our greatest cosponsored legislation authored by the military action began in Afghani- leaders, when he made a very wise and Senator SUSAN COLLINS of Maine to stan. As I mentioned, there a number still cogent observation. double the death gratuity from $6,000 of other benefits that family members He cautioned that the willingness of to $12,000, which at the time was appar- whose loved one has died will receive, future generations to fight for their ently a big deal, since Congress had but unlike the death gratuity that country, no matter how just the cause, sparingly raised the death gratuity reaches family members within 48 will be proportional to how they per- since its inception in 1908. The last in- hours of the death, the other benefits ceive previous veterans were treated. crease before then was at the end of the can take some time—in fact, months— It is important that we show a deeper first gulf war in 1991. Even then, half of to make it to the family. That is just appreciation for those heroic soldiers that benefit was subjected to taxation. too long a period of time. They will who died defending our liberty and also Some of us in Congress understood eventually get it, but that short-term, their brave families back home who the need to provide this financial as- immediate influx of money helps pro- have paid the ultimate sacrifice as sistance and were able to get this pro- vide for the monetary stability at a well. This legislation is a significant vision included in a larger bill, the time of great grief and uncertainty. striding step in that direction. Military Family Tax Relief Act of 2003. The money can help pay for a home I urge my colleagues in the Senate to Not only did this legislation double the mortgage or for rent or gas or utilities quickly act on this legislation and all death gratuity from $6,000 to $12,000, bills, car payments, or schooling. others trying to help our families of but it also made the payments of these School kids may be in schools where fallen heroes and their loved ones and moneys tax exempt. there are expenses. It will also help put pass these measures as quickly as pos- However, that is not enough, $12,000. food on the table. As a matter of fact, sible, and also make them retroactive I still believe this current amount of many of the fallen soldiers were the for all of those nearly 1,500 who have $12,000 is a miserly and paltry amount. sole or significant breadwinner for the lost their lives protecting our freedom, Indeed, I consider it insulting. I have families, and the families are left with- advancing liberty throughout the been speaking with people from Vir- out any immediate source of income. world, and people who are truly Amer- ginia and all across America and lis- It is doubly important for members ican heroes whom we will always re- tening to them. It is confirmed to me of the Guard and Reserve. Approxi- member. how truly insulting this sum of money mately a quarter to a third of those is. My sense is that a grateful Nation who serve in the Guard and Reserve ac- By Mr. HAGEL (for himself, Mr. wants to better help the widows, wid- tually take a pay cut when they are COLEMAN, Mr. KENNEDY, Mr. owers, and the children of those who called up or activated to serve. While it DEWINE, and Mr. OBAMA): have given their lives and their futures is a source of income that may be less S. 43. A bill to provide certain en- in defense of our country and our lib- than they were receiving in the private hancements to the Montgomery GI Bill erties, whether it was in Afghanistan, sector, it is still a significant, substan- Program for certain individuals who Iraq, or elsewhere in the world. tial part of that family household’s in- serve as members of the Armed Forces

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00123 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S230 CONGRESSIONAL RECORD — SENATE January 24, 2005 after the September 11, 2001, terrorist ment, recruits are given the option of SEC. 2. EXEMPTION FROM PAYMENT OF INDI- attacks, and for other purposes; to the enrolling in the G.I. Bill. If they choose VIDUAL CONTRIBUTIONS UNDER MONTGOMERY GI BILL OF INDIVID- Committee on Armed Services. to participate, they are charged a $1,200 UALS WHO SERVE AS ACTIVE DUTY Mr. HAGEL. Mr. President, I rise enrollment fee which is deducted from MEMBERS OF THE ARMED FORCES today to re-introduce the ‘‘Military their monthly pay over 12 months. UNDER EXECUTIVE ORDER 13235. Death Benefit Improvement Act of However, we are now in a time of war (a) ACTIVE DUTY PROGRAM.—Notwith- and the demands on our service mem- standing section 3011(b) of title 38, United 2005’’ and the ‘‘G.I. Bill Enhancement States Code, no reduction in basic pay other- Act of 2005.’’ These pieces of legislation bers and their families have been trans- wise required by such section shall be made recognize the service and sacrifice of formed and increased. To that end, in the case of a covered member of the the men and women of our armed changes must be made to the G.I. Bill Armed Forces. forces who are proudly and bravely to ensure that it continues to provide (b) SELECTED RESERVE PROGRAM.—Not- serving our country around the world. realistic and relevant educational op- withstanding section 3012(c) of such title, no portunities to those who are defending reduction in basic pay otherwise required by These bills also recognize the sacrifices such section shall be made in the case of a borne by the families of our men and our country. This is an issue of fundamental fair- covered member of the Armed Forces. women in uniform. (c) TERMINATION OF ON-GOING REDUCTIONS The ‘‘Military Death Benefit Im- ness. The men and women serving our IN BASIC PAY.—In the case of a covered mem- provement Act of 2005’’ would raise the country in wartime should not have to ber of the Armed Forces who first became a military death gratuity paid to the choose between the long-term benefits member of the Armed Forces or first entered families of military personnel killed of the G.I. Bill and the short-term de- on active duty as a member of the Armed Forces before the date of the enactment of while on active duty from $12,000 to mands of their paycheck. The G.I. Bill is one of the great legacies of military this Act and whose basic pay would, but for $100,000. This increase would also be ap- subsection (a) or (b) of this section, be sub- plied retroactively to all service mem- service to our country. Men and women sacrificing for their country in a time ject to reduction under section 3011(b) or bers on active duty who have died since 3012(c) of such title for any month beginning of war need to be assured that access to September 11, 2001. on or after that date, the reduction of basic The military death gratuity is money higher education is in their future. pay of such covered member of the Armed Congress must do all it can to ensure provided within 72 hours to families of Forces under such section 3011(b) or 3012(c), that education options for our veterans service members who are killed while as applicable, shall cease commencing with are accessible and real. the first month beginning on or after that on active duty. These funds assist next- The G.I. Bill has long been recognized date. of-kin with their immediate financial as one of the most important Congres- (d) REFUND OF CONTRIBUTIONS.—(1) In the needs. sional acts of post World War II Amer- case of any covered member of the Armed Forces whose basic pay was reduced under Though nothing can replace the hole ica. This legislation ensured that all left in a family by the loss of a son, section 3011(b) or 3012(c) of such title for any who served their Nation would not be month beginning before the date of the en- daughter, mother or father, this bill penalized as a result of their time away will help alleviate some of the finan- actment of this Act, the Secretary concerned from their careers and communities in shall pay to such covered member of the cial hardships faced by the families of service to their country. The G.I. Bill Armed Forces an amount equal to the aggre- our brave service men and women who helped members of our ‘‘greatest gen- gate amount of reductions of basic pay of give their lives in service to our coun- eration’’ upon their return home by such member of the Armed Forces under try. It will send a message to our brave providing them with the educational such section 3011(b) or 3012(c), as applicable, young men and women and their fami- tools necessary to pursue the opportu- as of that date. lies that their Nation appreciates their (2) Any amount paid to a covered member nities enjoyed by all Americans. of the Armed Forces under paragraph (1) service and sacrifice. Over the last 60 years, the Federal shall not be included in gross income under As we face the challenges of the 21st Government has invested billions of the Internal Revenue Code of 1986. Century, service men and women sacri- dollars in education benefits for our (3) Amounts for payments made by a Sec- ficing for their country in a time of Nation’s veterans. Over 21 million men retary concerned under paragraph (1) during war should be assured that their fami- and women have benefitted from the fiscal year 2005 shall be derived from lies will be taken care of. The loss of a G.I. Bill, resulting in a workforce that amounts made available for such fiscal year loved one is a tremendous emotional transformed American society. The in an Act making supplemental appropria- tions for defense and the reconstruction of hardship for families. Congress must do bill’s far-reaching impact can be seen Iraq. what it can to ensure that it does not here today, as Members of this body, (4) In this subsection, the term ‘‘Secretary cause devastating financial hardship as including this Senator, have prospered concerned’’ means— well. as a result of the benefits of the G.I. (A) the Secretary of the Army, with re- I also rise today to re-introduce the Bill. spect to matters concerning the Army; ‘‘G.I. Bill Enhancement Act of 2005.’’ Every American should be proud of (B) the Secretary of the Navy, with respect This legislation would waive the Mont- how we have responded to the chal- to matters concerning the Navy or the Ma- gomery G.I. Bill program’s $1,200 en- lenges of terrorism following Sep- rine Corps; (C) the Secretary of the Air Force, with re- rollment fee for active duty members tember 11, 2001. We owe much to the men and women who have fought spect to matters concerning the Air Force; of our Nation’s military. and The G.I. Bill Enhancement Act cov- bravely in Afghanistan and Iraq. The (D) the Secretary of Homeland Security, ers any member of the United States ‘‘Military Death Benefit Improvement with respect to matters concerning the Coast military, including Reserve and Na- Act of 2005’’ and the ‘‘G.I. Bill En- Guard. tional Guard members, serving on ac- hancement Act of 2005’’ recognize these (e) COVERED MEMBER OF THE ARMED FORCES tive duty during the period after Presi- sacrifices. I hope that my Senate col- DEFINED.—In this section, the term ‘‘covered leagues will give serious consideration member of the Armed Forces’’ means any in- dent Bush’s November 2001 Executive dividual who serves on active duty as a mem- Order that placed the military on a to these important pieces of legisla- tion, and that we will pass these bills ber of the Armed Forces during the period— wartime footing. This legislation (1) beginning on November 16, 2001, the would: Waive the G.I. Bill enrollment and they will be signed into law by date of Executive Order 13235, relating to Na- fee until President Bush’s November President Bush. I ask unanimous con- tional Emergency Construction Authority; 2001 Executive Order is rescinded; allow sent that the text of these two bills be and all service men and women to opt into printed in the RECORD. (2) ending on the termination date of the There being no objection, the bills the G.I. Bill with no penalty or enroll- Executive order referred to in paragraph (1). were ordered to be printed in the ment fee; and reimburse those service SEC. 3. OPPORTUNITY FOR INDIVIDUALS WHO RECORD, as follows: SERVE AS ACTIVE DUTY MEMBERS men and women covered by this bill S. 43 OF THE ARMED FORCES UNDER EX- who have already paid the $1,200 enroll- ECUTIVE ORDER 13235 TO WITH- Be it enacted by the Senate and House of Rep- ment fee prior to the enactment of this DRAW ELECTION NOT TO ENROLL IN resentatives of the United States of America in MONTGOMERY GI BILL. legislation. Congress assembled, Section 3018 of title 38, United States Code, The current Montgomery G.I. Bill is SECTION 1. SHORT TITLE. is amended— tailored to serve members of our mili- This Act may be cited as the ‘‘Montgomery (1) by redesignating subsections (c) and (d) tary in a time of peace. Upon enlist- GI Bill Enhancement Act of 2005’’. as subsection (d) and (e), respectively;

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00124 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S231 (2) by inserting after subsection (b) the fol- By Mr. LEVIN (for himself, Mr. currently heads the Addiction Re- lowing new subsection (c): HATCH, and Mr. BIDEN): search Institute at Wayne State Uni- ‘‘(c)(1) Notwithstanding any other provi- S. 45. A bill to amend the Controlled versity, writes: sion of this chapter, during the one-year pe- Substances Act to lift the patient limi- riod beginning on the date of the enactment We have three physicians in a group, all of whom have been trained and granted waivers of this subsection, an individual who— tation on prescribing drug addiction by the U.S. Department of Health and ‘‘(A) serves on active duty as a member of treatments by medical practitioners in Human Services to prescribe Suboxone and the Armed Forces during the period begin- group practices, and for other purposes; Subutex for the treatment of opiate addic- ning on November 16, 2001, and ending on the to the Committee on Health, Edu- tion. All are specialists in the treatment of termination date of Executive Order 13235, cation, Labor, and Pensions. addictive disorders. Rather than being able relating to National Emergency Construc- Mr. LEVIN. Mr. President, the legis- to bring this potentially life saving therapy tion Authority; and lation I am introducing today along to 90 members of our community, they are ‘‘(B) has served continuously on active with my colleagues Senator HATCH and restricted to a total of thirty. duty without a break in service following the Senator BIDEN, addresses an unin- This situation is particularly heart break- date the individual first becomes a member ing in places where there are a few or only or first enters on active duty as a member of tended effect of a provision in the original Drug Abuse and Treatment one provider. This situation will only get the Armed Forces, worse as physicians and practice plans reach shall have the opportunity, on such form as Act of 2000 (DATA) that hinders access their 30-patient limitation. the Secretary of Defense shall prescribe, to to a revolutionary new treatment for I have been involved in the development of withdraw an election under section 3011(c)(1) thousands of individuals who seek it. Suboxone and Subutex for the treatment of or 3012(d)(1) of this title not to receive edu- When Congress passed DATA as Title opiate addiction for many years. It is a safer cation assistance under this chapter. XXXV of the Children’s Health Act of medication with less abuse potential than ‘‘(2) An individual described paragraph (1) 2000, it allowed for the dispensing and methadone. It allows people who fear public who made an election under section 3011(c)(1) prescribing of Schedule III drugs, like knowledge of their addictive disease to more or 3012(d)(1) of this title and who— discreetly seek help from a private physi- ‘‘(A) while serving on active duty during buprenorphine/naloxone, in an office- cian. It is a medication that can be used for the one-year period beginning on the date of based setting, for the treatment of her- a short period with adolescents who have be- the enactment of this subsection makes a oin addiction. As a result of DATA, ac- come addicted to opiates because it is easier withdrawal of such election; cess to treatment is significantly ex- to taper them off of this drug than metha- ‘‘(B) continues to serve the period of serv- panded; patients no longer are re- done. In short, office-based practice with ice which such individual was obligated to stricted to receiving treatment in a Suboxone and Subutex is a major addition to serve; large public clinic, usually at a great our country’s treatment system for opiate ‘‘(C) serves the obligated period of service distance, but now may receive such addiction. It is essential that we remove the described in subparagraph (B) or before com- impediment of limiting Physician Practice pleting such obligated period of service is de- care in the private, nearby office of Plans to 30 patients so that each of the phy- scribed by subsection (b)(3)(B); and qualified physicians. sicians in such Practice Plans who are ‘‘(D) meets the requirements set forth in DATA limits individual physicians to trained to use this medication can bring paragraphs (4) and (5) of subsection (b), treating no more than 30-patients at a their services to those in need. is entitled to basic educational assistance time. Unfortunately, the law results in Peter DeMarco, in an article in the under this chapter.’’; and the same 30-patient limit on physician May 30, 2004 Boston Globe, writes: (3) in subsection (e), as so redesignated, by group practices. The difficulties that When buprenorphine became available as a inserting ‘‘or (c)(2)(A)’’ after ‘‘(b)(1)’’. have arisen, including the dashed hopes treatment for OxyContin and heroin addic- for treatment of many, have resulted By Mr. HAGEL (for himself, Mr. tion 18 months ago, many medical profes- in the underutilization of this proven sionals and addicts hailed it as a miracle DEWINE, Mrs. CLINTON, Mr. therapy all across this country, includ- drug, bringing addicts back from the brink KENNEDY, Mr. LAUTENBERG, and ing my home state of Michigan. and helping them lead normal lives when all Mr. SALAZAR): One of the authors of DATA, I can else had failed. But for many addicts, S. 44. A bill to amend title 10, United tell you that it clearly was not our in- buprenorphine remains one of the hardest States Code, to increase the amount of drugs to obtain.... (B)prenorphine doesn’t tention that individuals seeking this the military death gratuity from cloud the minds of patients, allowing them new treatment have less access simply $12,000 to $100,000; to the Committee on to work or study as if they’re not on any because they receive care from a physi- Armed Services. drug at all. Nearly all who take cian practicing in a group, or from a buprenorphine, meanwhile, say they lose all S. 44 group-based or mixed-model health physical cravings for street drugs. Be it enacted by the Senate and House of Rep- plan. Nevertheless, this is the effect But a combination of federal limits on the resentatives of the United States of America in distribution of buprenorphine . . . has kept Congress assembled, and it is having a severe effect. The problem is addressed by remov- thousands of opiate addicts from receiving SECTION 1. SHORT TITLE. the drug in Massachusetts and across the This Act may be cited as the ‘‘Military ing the 30-patient aggregate limit on country. At the heart of the issue is federal Death Benefit Improvement Act of 2005’’. medical groups. This is achieved in the legislation passed in 2000—two years before SEC. 2. INCREASE IN DEATH GRATUITY PAYABLE bill we are introducing today. Our bill the drug was approved by the FDA—that re- WITH RESPECT TO MEMBERS OF simply removes the statutory limit on stricts individual clinical practices from THE ARMED FORCES. physician group practices, while main- treating more than 30 patients with (a) AMOUNT OF DEATH GRATUITY.—Section taining the 30-patient limit on each buprenorphine at a time. 1478(a) of title 10, United States Code, is physician. I am pleased that the Senate While many substance-abuse experts say amended by striking ‘‘$12,000’’ and inserting the 30-patient figure is too low for some ‘‘$100,000’’. has already gone on record in support practices, their main quarrel with the Drug (b) EFFECTIVE DATE.—The amendment of this modification to DATA. On Octo- Addiction Treatment Act of 2000 is its failure made by subsection (a) shall apply with re- ber 11, 2004, the Senate Passed S. 2976, to differentiate single-physician practices, spect to deaths occurring on or after Novem- to remove the 30-patient limit on the hospitals, and health care organizations. For ber 16, 2001, the date of Executive Order group practices. However, the House example, all the doctors who work for Tufts 13235, relating to National Emergency Con- adjourned before acting on the legisla- Health Plan can treat a combined 30 pa- struction Authority. tion. It is our hope that the bill we are tients—the same total as can be seen by a (c) FUNDING.— physician practicing alone. (1) SOURCE OF FUNDS.—Amounts for the introducing today will receive speedy Boston health officials, along with their payment during fiscal year 2005 of death gra- action in both the Senate and House in counterparts in the State and Federal gov- tuities by a Secretary concerned under sec- the very near future. ernments, say the Federal legislation erred tions 1475 through 1477 of title 10, United Mr. President, I would like to share on the side of caution, and needs to be States Code, as amended by subsection (a), some of the sentiments that have been changed to allow wider access to shall be derived from amounts made avail- expressed in support of the group prac- buprenorphine. able for such fiscal year in an Act making tice modification, as well as some first ‘‘Boston Medical Center’s main practice emergency supplemental appropriations for hand accounts of individuals who are has 200 or more general internal-medicine defense and for the reconstruction of Iraq. doctors, and within that practice, we can (2) SECRETARY CONCERNED DEFINED.—In this being successfully treated with only treat 30 people. It’s the craziest loop- subsection, the term ‘‘Secretary concerned’’ buprenorphine/naloxone. Dr. Charles hole,’’ said Colleen Labelle, nurse-manager has the meaning given such term in section Schuster, a former director of the Na- of the hospital’s Office-Based Opioid Treat- 101(a)(9) of title 10, United States Code. tional Institute on Drug Abuse who ment Program. ‘‘We get 20 calls a day from

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00125 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S232 CONGRESSIONAL RECORD — SENATE January 24, 2005 across the state. People are begging, des- lation will help to build stronger eco- forward with an illegitimately elected perate to get treated, who we can’t treat.’’ nomic ties between the United States president. The Federal Substance Abuse and Mental and Ukraine. By drawing Ukraine into normal Health Services Administration has begun The Cold War era Jackson-Vanik an internal process to increase the 30-patient trade relations, the international com- cap. But because any proposed change would trade restrictions that deny most fa- munity will be helping Ukraine to be subject to the public-review process, ap- vored nation trade status to imports achieve greater market reform and proval could take as long as two years, said from former Soviet-Bloc countries are continue its commitment to safe- Nick Reuter, a senior public health analyst outdated and, when applied to Ukraine, guarding religious liberty and enforc- with the agency. inappropriate. Those restrictions were ing laws to combat discrimination. Timothy Tigges says his addiction began established as a tool to pressure Com- PNTR status will hopefully do more after he wrenched his back and bummed a munist nations to allow their people to than increase bilateral trade between few Percocet pills, a prescription analgesic, freely emigrate in exchange for favor- from a friend to dull the pain. Before he the United States and Ukraine and en- knew it, he was hooked on opiates, alter- able trade treatment by the United courage increased international invest- nating between OxyContin and shooting up States. ment in Ukraine. Hopefully it will also heroin as his life went to pieces. Ukraine does allow its citizens the stimulate the reform we all want and In October, Tigges, a 27-year-old East Bos- right and opportunity to emigrate. It the Ukrainian people deserve on their ton carpet installer, began taking has met the Jackson-Vanik test. In way to achieving a more mature and buprenorphine, placing an orange pill the fact, Ukraine has been found to be in stable democracy. size of a dime under his tongue until it dis- full compliance with the freedom of solves, four times daily. He hasn’t touched emigration requirements under the It’s time we recognize Ukraine’s ac- an illegal drug since the day he started the Jackson-Vanik law. Ukraine has been complishments and status as an emerg- program, has put on 80 pounds from lifting certified as meeting the Jackson-Vanik ing democracy and market economy by weights at the gym, and has yet to miss a lifting the Jackson-Vanik restrictions. day of work. For the first time in three requirements on an annual basis since 1992 when a bilateral trade agreement I hope my colleagues will support this years, Tigges hopes to see his 5-year-old important bill. daughter, whose mother has refused to let went into effect. him visit. It is time the United States recog- I ask unanimous consent that the ‘‘I’ve had clean urines, 100 percent, for nine nizes this reality by eliminating the text of the bill be printed in the months now. There’s nothing I’m prouder of Jackson-Vanik restrictions and grant- RECORD. than that,’’ he said, choking back emotion. ing Ukraine normal trading status on a There being no objection, the bill was ‘‘What I read on the front page of the paper every day is 18- and 20-year-old kids dying of permanent basis. Our bill does this as ordered to be printed in the RECORD, as garbage drugs. There’s just no need for it. I well as addressing traditional Jackson- follows: would take every ounce of heroin off the Vanik issues such as emigration, reli- S. 46 street and give them this stuff. You watch gious freedom, restoration of property, the crime rate go down.’’ and human rights. It also deals with Be it enacted by the Senate and House of Rep- the important trade issues that must resentatives of the United States of America in Mr. President, I ask unanimous con- Congress assembled, sent that the text of the legislation be be considered when granting a country included at the end of my remarks. permanent normal trade relations SECTION 1. FINDINGS. There being no objection, the bill was (PNTR), such as making progress to- Congress finds that— (1) Ukraine allows its citizens the right ordered to be printed in the RECORD, as ward World Trade Organization (WTO), accession and tariff and excise tax re- and opportunity to emigrate, free of any- follows: thing more than a nominal tax on emigra- ductions. S. 45 tion or on the visas or other documents re- Since reestablishing independence in quired for emigration and free of any tax, Be it enacted by the Senate and House of Rep- 1991, Ukraine has taken important resentatives of the United States of America in levy, fine, fee, or other charge on any citi- Congress assembled, steps toward the creation of demo- zens as a consequence of the desire of such cratic institutions and a free-market citizens to emigrate to the country of their SECTION 1. MAINTENANCE OR DETOXIFICATION TREATMENT WITH CERTAIN NAR- economy. As a member state of the Or- choice; COTIC DRUGS; ELIMINATION OF 30- ganization for Security and Coopera- (2) Ukraine has been found to be in full PATIENT LIMIT FOR GROUP PRAC- tion in Europe (OSCE), Ukraine is com- compliance with the freedom of emigration TICES. mitted to developing a system of gov- requirements under title IV of the Trade Act (a) IN GENERAL.—Section 303(g)(2)(B) of the of 1974 since 1997; Controlled Substance Act (21 U.S.C. ernance in accordance with the prin- (3) since reestablishing independence in 823(g)(2)(B)) is amended by striking clause ciples regarding human rights that are 1991, Ukraine has taken important steps to- (iv). set forth in the Final Act of the Con- ward the creation of democratic institutions (b) CONFORMING AMENDMENT.—Section ference on Security and Cooperation in and a free-market economy and, as a partici- 303(g)(2)(B) of the Controlled Substance Act Europe, the Helsinki Final Act. pating state of the Organization for Security (21 U.S.C. 823(g)(2)(B)) is amended in clause On December 26, 2004, Ukraine took and Cooperation in Europe (OSCE), is com- (iii) by striking ‘‘In any case’’ and all that another historic step in its pursuit of mitted to developing a system of governance follows through ‘‘the total’’ and inserting democracy with the legitimate election in accordance with the principles regarding ‘‘The total’’. human rights and humanitarian affairs that of its new President Viktor Yuschenko. (c) EFFECTIVE DATE.—This section shall are set forth in the Final Act of the Con- take effect on the date of enactment of this This election showed the world that ference on Security and Cooperation in Eu- Act. Ukraine has joined the family of de- rope (also known as the ‘‘Helsinki Final mocracies. The United States can help Act’’) and successive documents; By Mr. LEVIN (for himself and advance this young democracy by re- (4) the people of Ukraine deserve praise for Mr. LUGAR): pealing our Cold War-era laws that demonstrating a deep commitment to de- S. 46. A bill to authorize the exten- should no longer apply to them and mocracy and through peaceful civil action sion of unconditional and permanent welcoming them to the international demanding a process that achieved a fair nondiscriminatory treatment (perma- election in Ukraine’s most recent Presi- economic community as a full partner. dential runoff; nent normal trade relations treatment) This bill will accomplish these goals. (5) Ukraine has made progress toward to the products of Ukraine, and for In addition to welcoming the Ukrain- meeting international commitments and other purposes; to the Committee on ian government to the family of de- standards in the most recent Presidential Finance. mocracies, we must also take a mo- runoff elections, including in the implemen- Mr. LEVIN. Mr. President, today I ment to honor the Ukranian people for tation of Ukraine’s new elections laws; introduce with my colleague, Senator their commitment to democratic insti- (6) as a participating state of the Organiza- LUGAR, a bill to grant normal trade tutions in civil society through peace- tion for Security and Co-operation in Europe treatment to the products of Ukraine. ful demonstrations. Free and fair elec- (OSCE), Ukraine is committed to addressing issues relating to its national and religious My brother, Congressman SANDER tions were conducted only because of minorities and to adopting measures to en- LEVIN and other members are intro- the courage and hard work of the sure that persons belonging to national mi- ducing a similar bill in the House. It is Ukranian people. Without their persist- norities have full equality both individually our hope that enactment of this legis- ence Ukraine was in danger of moving and communally;

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00126 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S233 (7) Ukraine has enacted legislation pro- (B) of safeguarding religious liberty vance the interests of the United States.’’, viding protection against incitement to vio- throughout Ukraine; with the blank space being filled with the ap- lence against persons or groups based on na- (C) of enforcing existing Ukrainian laws at propriate date. tional, racial, ethnic, or religious discrimi- the national and local levels to combat eth- (3) PROCEDURES FOR CONSIDERING RESOLU- nation, including anti-Semitism, and has nic, religious, and racial discrimination and TIONS.— committed itself, including through a letter violence; (A) INTRODUCTION AND REFERRAL.—A Con- to the President of the United States, to en- (D) of expanding the restitution of reli- gressional Oversight Resolution— suring freedom of religion and combating ra- gious and communal properties, including (i) in the House of Representatives— cial and ethnic intolerance and hatred; establishing a legal framework for the com- (I) may be introduced by any Member of (8) Ukraine has engaged in efforts to com- pletion of such restitution in the future; the House; bat ethnic and religious intolerance by co- (E) of meeting international standards of (II) shall be referred to the Committee on operating with various United States non- democracy, including implementation of Ways and Means and, in addition, to the governmental organizations; newly adopted election laws; Committee on Rules; and (9) Ukraine is continuing the restitution of (F) of creating a more independent legal (III) may not be amended by either Com- religious properties, including religious and and judicial system, governed by the rule of mittee; and communal properties confiscated from na- law, and free of political interference and (ii) in the Senate— tional and religious minorities during the corruption; and (I) may be introduced by any Member of Soviet era, is facilitating the revival of those (G) of respecting media freedoms fully, in- the Senate; minority groups, and remains committed to cluding by prohibiting physical harm to and (II) shall be referred to the Committee on developing a legislative framework for com- intimidation of journalists; Finance; and pleting this process, as promised in a letter (2) supporting Ukraine’s efforts to make (III) may not be amended. to the President of the United States; further market-oriented reforms, to pursue a (B) COMMITTEE DISCHARGE AND FLOOR CON- (10) Ukraine has received normal trade re- policy of Euro-Atlantic integration, to join SIDERATION.—The provisions of subsections lations treatment since concluding a bilat- the WTO, and to combat corruption; (c) through (f) of section 152 of the Trade Act eral trade agreement with the United States (3) supporting Ukraine’s efforts to make of 1974 (19 U.S.C. 2192 (c) through (f)) (relat- that entered into force on June 23, 1992; substantial and meaningful progress in en- ing to committee discharge and floor consid- (11) Ukraine’s accession to the World Trade acting and enforcing the protection of intel- eration of certain resolutions in the House Organization would be a welcome step, rec- lectual property rights; and and Senate) apply to a Congressional Over- ognizing that many issues remain to be re- (4) working with Ukraine to ensure quick sight Resolution to the same extent as such solved, including commitments relating to resolution of trade disputes that may arise, subsections apply to resolutions under such access of United States agricultural prod- particularly in the intellectual property, section. ucts, protection of intellectual property poultry, and other agricultural sectors. (c) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.—Subsection (b) is enacted by rights, tariff and excise tax reductions for SEC. 4. CONTINUED ENJOYMENT OF RIGHTS goods (including automobiles), trade in serv- UNDER THE JUNE 23, 1992, BILAT- Congress— ices, elimination of export incentives for in- ERAL TRADE AGREEMENT. (1) as an exercise of the rulemaking power dustrial goods, and reform of customs proce- (a) FINDING.—Congress finds that the trade of the House of Representatives and the Sen- dures and other non-tariff barriers; agreement between the United States and ate, respectively, and as such is deemed a (12) Ukraine has enacted protections re- Ukraine that entered into force on June 23, part of the rules of each House, respectively, flecting internationally recognized labor 1992, remains in force between the 2 coun- and the procedures described in such sub- rights; tries and provides the United States with im- section supersede other rules only to the ex- (13) as a participating state of the OSCE, portant rights, including the right to use tent that they are inconsistent with such Ukraine has committed itself to respecting specific safeguard rules to respond to import other rules; and freedom of the press, and the new adminis- surges from Ukraine. (2) with the full recognition of the con- tration has affirmed this commitment; (b) APPLICABILITY OF SAFEGUARD.—Section stitutional right of either House to change (14) Ukraine has stated its desire to pursue 421 of the Trade Act of 1974 (19 U.S.C. 2451) the rules (so far as relating to the procedures a course of Euro-Atlantic integration with a shall apply to Ukraine to the same extent as of that House) at any time, in the same man- commitment to ensuring democracy and such section applies to the People’s Republic ner, and to the same extent as any other rule prosperity for its citizens; and of China, so long as the trade agreement de- of that House. (15) Ukraine has participated with the scribed in subsection (a) remains in force. Mr. LUGAR. Mr. President, I rise United States in its peacekeeping operations SEC. 5. EXERCISE OF CONGRESSIONAL OVER- today in support of a bill that I have in Europe and has provided important co- SIGHT OVER WTO ACCESSION NEGO- TIATIONS. introduced with Senator CARL LEVIN operation in the global struggle against (a) NOTICE OF AGREEMENT ON ACCESSION TO authorizing the extension of permanent international terrorism. WTO BY UKRAINE.—Not later than 5 days normal trade relations treatment. SEC. 2. TERMINATION OF APPLICATION OF TITLE after the date on which the United States IV OF THE TRADE ACT OF 1974 TO Ukraine is still subject to the provi- UKRAINE. has entered into a bilateral agreement with sions of the Jackson-Vanik amendment (a) PRESIDENTIAL DETERMINATIONS AND EX- Ukraine on the terms of accession by to the Trade Act of 1974, which sanc- TENSION OF UNCONDITIONAL AND PERMANENT Ukraine to the World Trade Organization, tions nations for failure to comply NONDISCRIMINATORY TREATMENT.—Notwith- the President shall so notify Congress, and with freedom of emigration require- standing any provision of title IV of the the President shall transmit to Congress, not later than 15 days after that agreement is ments. Our bill would repeal perma- Trade Act of 1974 (19 U.S.C. 2431 et seq.), the nently the application of Jackson- President may— entered into, a report that sets forth the pro- (1) determine that such title should no visions of that agreement. Vanik to Ukraine. longer apply to Ukraine; and (b) CONGRESSIONAL OVERSIGHT RESOLU- In the post-cold-war era, Ukraine has (2) after making a determination under TION.— demonstrated a commitment to meet paragraph (1) with respect to Ukraine, pro- (1) INTRODUCTION.—If a Congressional Over- these requirements, and in addition, claim the extension of unconditional and sight Resolution is introduced in the House has expressed a strong desire to abide permanent nondiscriminatory treatment of Representatives or the Senate during the by free market principles and good gov- (permanent normal trade relations treat- 30-day period (not counting any day which is ernance. Last November, I served as ment) to the products of that country. excluded under section 154(b) of the Trade President Bush’s personal representa- Act of 1974 (19 U.S.C. 2194(b)), beginning on (b) TERMINATION OF APPLICATION OF TITLE tive to the runoff election between IV.—On and after the effective date of the the date on which the President first notifies extension under subsection (a)(2) of non- Congress under subsection (a) of the agree- Prime Minister Yanukovich and Viktor discriminatory treatment to the products of ment referred to in that subsection, that Yushchenko. During that visit, I pro- Ukraine, chapter 1 of title IV of the Trade Congressional Oversight Resolution shall be moted free and fair election procedures Act of 1974 shall cease to apply to that coun- considered in accordance with this sub- that would strengthen worldwide re- try. section. spect for the legitimacy of the winning SEC. 3. SENSE OF CONGRESS. (2) CONGRESSIONAL OVERSIGHT RESOLU- candidate. Unfortunately, that was not It is the sense of Congress that the United TION.—In this subsection, the term ‘‘Congres- possible. The Government of Ukraine States remain fully committed to a multi- sional Oversight Resolution’’ means only a allowed, or aided and abetted, whole- faceted engagement with Ukraine, including joint resolution of the two Houses of Con- sale fraud and abuse that changed the by— gress, the matter after the resolving clause (1) encouraging Ukraine to continue to of which is as follows: ‘‘That it is the sense results of the election. It is clear that meet its commitments as a participating of the Congress that the agreement between Prime Minister Yanukovich did not member of the OSCE and welcoming further the United States and Ukraine on the terms win the election. progress on implementing policy— of accession by Ukraine to the World Trade In response, the people of Ukraine (A) of providing for the free emigration of Organization, of which Congress was notified rallied in the streets and demanded jus- its citizens; on llllllll, does not adequately ad- tice. After tremendous international

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00127 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S234 CONGRESSIONAL RECORD — SENATE January 24, 2005 pressure and mediation, Ukraine re- S. 47. A bill to provide for the ex- (6) SECRETARIES.—The term ‘‘Secretaries’’ peated the runoff election on December change of certain Federal land in the means the Secretary of the Interior and the 26. A newly named Central Election Santa Fe National Forest and certain Secretary of Agriculture, acting jointly. Commission and a new set of election non-Federal land in the Pecos National (7) STATE.—The term ‘‘State’’ means the State of New Mexico. laws led to a much-improved process. Historical Park in the State of New International monitors concluded that Mexico; to the Committee on Energy SEC. 3. LAND EXCHANGE. the process was generally free and fair. and Natural Resources. (a) IN GENERAL.—On conveyance by the This past weekend Viktor Yushchenko Mr. BINGAMAN. Mr. President, landowner to the Secretary of the Interior of was inaugurated as President of today, I am introducing along with Mr. the non-Federal land, title to which is ac- Ukraine. DOMENICI the ‘‘Pecos National Histor- ceptable to the Secretary of the Interior— Extraordinary events have occurred ical Park Land Exchange Act of 2005’’. (1) the Secretary of Agriculture shall, sub- in Ukraine over the last three months. This bill will authorize a land exchange ject to the conditions of this Act, convey to A free press has revolted against gov- the landowner the Federal land; and between the Federal government and a (2) the Secretary of the Interior shall, sub- ernment intimidation and reasserted private landowner that will benefit the ject to the conditions of this Act, grant to itself. An emerging middle class has Pecos National Historical Park in my the landowner the easement described in found its political footing. A new gen- State of New Mexico. subsection (b). eration has embraced democracy and Specifically, the bill will enable the (b) EASEMENT.— openness. A society has rebelled Park Service to acquire a private (1) IN GENERAL.—The easement referred to against the illegal activities of its gov- inholding within the Park’s boundaries in subsection (a)(2) is an easement (including ernment. It is in our interest to recog- in exchange for the transfer of a nearby an easement for service access) for water nize and protect these advances in tract of National Forest System land. pipelines to 2 well sites located in the Park, Ukraine. The National Forest parcel has been as generally depicted on the map. The United States has a long record identified as available for exchange in (2) ROUTE.—The Secretary of the Interior, of cooperation with Ukraine through the Santa Fe National Forest Land and in consultation with the landowner, shall de- termine the appropriate route of the ease- the Nunn-Lugar Cooperative Threat Resource Management Plan and is sur- ment through the Park. Reduction. Ukraine inherited the third rounded by private lands on three (3) TERMS AND CONDITIONS.—The easement largest nuclear arsenal in the world sides. shall include such terms and conditions re- with the fall of the Soviet Union. The Pecos National Historical Park lating to the use of, and access to, the well Through the Nunn-Lugar program the possesses exceptional historic and ar- sites and pipeline, as the Secretary of the In- United States has assisted Ukraine in chaeological resources. The Park pre- terior, in consultation with the landowner, eliminating this deadly arsenal and serves the ruins of the great Pecos determines to be appropriate. joining the Nonproliferation Treaty as pueblo, which was a major trade cen- (4) APPLICABLE LAW.—The easement shall be established, operated, and maintained in a non-nuclear State. ter, and the ruins of two Spanish colo- compliance with applicable Federal law. One of the areas where we can deepen nial missions dating from the 17th and United States-Ukrainian relations is 18th centuries. (c) VALUATION, APPRAISALS, AND EQUALI- ZATION.— bilateral trade. Our trade relations be- The Glorieta Unit of the Park pro- (1) IN GENERAL.—The value of the Federal tween the United States and Ukraine tects key sites associated with the 1862 land and non-Federal land— are currently governed by a bilateral Civil War Battle of Glorieta Pass, a sig- (A) shall be equal, as determined by ap- trade agreement signed in 1992. There nificant event that ended the Confed- praisals conducted in accordance with para- are other economic agreements in erate attempt to expand the war into graph (2); or place seeking to further facilitate eco- the West. This Unit will directly ben- (B) if the value is not equal, shall be equal- nomic cooperation between the United efit from the land exchange. ized in accordance with paragraph (3). States and Ukraine, including a bilat- Similar bills passed the Senate in (2) APPRAISALS.— eral investment treaty which was both the 106th and the 108th Con- (A) IN GENERAL.—The Federal land and non-Federal land shall be appraised by an signed in 1996, and a taxation treaty gresses, and I hope it finally will be en- independent appraiser selected by the Secre- signed in 2000. In addition, Ukraine acted this Congress. taries. commenced negotiations to become a I ask unanimous consent that the (B) REQUIREMENTS.—An appraisal con- member of the World Trade Organiza- text of the bill be printed in the ducted under subparagraph (A) shall be con- tion in 1993, further demonstrating its RECORD. ducted in accordance with— commitment to adhere to free market There being no objection, the bill was (i) the Uniform Appraisal Standards for principles and fair trade. In light of its ordered to be printed in the RECORD, as Federal Land Acquisition; and adherence to freedom of emigration re- follows: (ii) the Uniform Standards of Professional Appraisal Practice. quirements, democratic principles, S. 47 (C) APPROVAL.—The appraisals conducted compliance with threat reduction and Be it enacted by the Senate and House of Rep- under this paragraph shall be submitted to several agreements on economic co- resentatives of the United States of America in the Secretaries for approval. operation, the products of Ukraine Congress assembled, (3) EQUALIZATION OF VALUES.— should not be subject to the sanctions SECTION 1. SHORT TITLE. (A) IN GENERAL.—If the values of the non- of Jackson-Vanik. This Act may be cited as the ‘‘Pecos Na- Federal land and the Federal land are not There are areas in which Ukraine tional Historical Park Land Exchange Act of equal, the values may be equalized by— needs to continue to improve. These in- 2005’’. (i) the Secretary of the Interior making a cash equalization payment to the landowner; clude market access, protection of in- SEC. 2. DEFINITIONS. In this Act: (ii) the landowner making a cash equali- tellectual property and reduction of zation payment to the Secretary of Agri- tariffs. The U.S. must remain com- (1) FEDERAL LAND.—The term ‘‘Federal land’’ means the approximately 160 acres of culture; or mitted to assisting Ukraine in pur- Federal land within the Santa Fe National (iii) reducing the acreage of the non-Fed- suing market economic reforms. The Forest in the State, as depicted on the map. eral land or the Federal land, as appropriate. (B) CASH EQUALIZATION PAYMENTS.—Any permanent waiver of Jackson-Vanik (2) LANDOWNER.—The term ‘‘landowner’’ and establishment of permanent nor- means the 1 or more owners of the non-Fed- amounts received by the Secretary of Agri- mal trade relations will be the founda- eral land. culture as a cash equalization payment under section 206(b) of the Federal Land Pol- (3) MAP.—The term ‘‘map’’ means the map tion on which further progress in a bur- icy and Management Act of 1976 (43 U.S.C. geoning economic partnership can be entitled ‘‘Proposed Land Exchange for Pecos National Historical Park’’, numbered 430/ 1716(b)) shall— made. (i) be deposited in the fund established by I am hopeful that my colleagues will 80,054, dated November 19, 1999, and revised September 18, 2000. Public Law 90–171 (commonly known as the ‘‘Sisk Act’’) (16 U.S.C. 484a); and review this legislation and join Senator (4) NON-FEDERAL LAND.—The term ‘‘non- LEVIN and I in supporting this impor- Federal land’’ means the approximately 154 (ii) be available for expenditure, without tant legislation. acres of non-Federal land in the Park, as de- further appropriation, for the acquisition of picted on the map. land and interests in land in the State. By Mr. BINGAMAN (for himself (5) PARK.—The term ‘‘Park’’ means the (d) COSTS.—Before the completion of the and Mr. DOMENICI): Pecos National Historical Park in the State. exchange under this section, the Secretaries

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00128 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S235 and the landowner shall enter into an agree- This bill would reauthorize federal SECTION 1. REAUTHORIZATION OF APPROPRIA- ment that allocates the costs of the ex- appropriations for New Jersey’s Coast- TIONS FOR NEW JERSEY COASTAL HERITAGE TRAIL ROUTE. change among the Secretaries and the land- al Heritage Trail. This authority would (a) REAUTHORIZATION.—Section 6 of Public owner. sunset in 2009, allowing enough time (e) APPLICABLE LAW.—Except as otherwise Law 100–515 (16 U.S.C. 1244 note) is amended— provided in this Act, the exchange of land for unfinished trail projects to be com- (1) in subsection (b)(1), by striking and interests in land under this Act shall be pleted. ‘‘$4,000,000’’ and all that follows and inserting in accordance with— The 300-mile Trail is divided into five ‘‘such sums as are necessary’’; and (1) section 206 of the Federal Land Policy sections that extend south from Perth (2) in subsection (c), by striking ‘‘10’’ and and Management Act of 1976 (43 U.S.C. 1716); Amboy to Cape May and west to Deep- inserting ‘‘12’’. and water. New Jersey’s Coastal Heritage (b) STRATEGIC PLAN.— (2) other applicable laws, including the Na- Trail is unique. It is neither a National (1) IN GENERAL.—Not later than 2 years tional Environmental Policy Act of 1969 (42 Heritage Area, nor a National Trail. after the date of enactment of this Act, the Secretary of the Interior shall prepare a U.S.C. 4321 et seq.). Collaboration on this Trail marked the (f) ADDITIONAL TERMS AND CONDITIONS.— strategic plan for the New Jersey Coastal The Secretaries may require, in addition to National Park Service’s first attempt Heritage Trail Route. any requirements under this Act, such terms at protecting a significant resource (2) CONTENTS.—The strategic plan shall de- and conditions relating to the exchange of without actually acquiring it. This ex- scribe— Federal land and non-Federal land and the periment has been a resounding suc- (A) opportunities to increase participation granting of easements under this Act as the cess. by national and local private and public in- Secretaries determine to be appropriate to The State of New Jersey is heavily terests in the planning, development, and ad- protect the interests of the United States. developed, and the National Park Serv- ministration of the New Jersey Coastal Her- (g) COMPLETION OF THE EXCHANGE.— ice, the State, and many other public itage Trail Route; and (1) IN GENERAL.—The exchange of Federal and private organizations have worked (B) organizational options for sustaining land and non-Federal land shall be com- hard to preserve the natural and cul- the New Jersey Coastal Heritage Trail pleted not later than 180 days after the later Route. of— tural heritage along the Trail. (A) the date on which the requirements of This experiment has also been a bar- By Mr. STEVENS (for himself gain. Between 1988 and 2004, the Park the National Environmental Policy Act of and Ms. MURKOWSKI): 1969 (42 U.S.C. 4321 et seq.) have been met; Service spent 3.9 million dollars on S. 49. A bill to establish a joint Fed- (B) the date on which the Secretary of the Trail projects, while non-federal eral-State Floodplain and Erosion Interior approves the appraisals under sub- sources contributed 5.4 million dollars Mitigation Commission for the State of section (c)(2)(C); or in matching funds. These funds rep- Alaska; to the Committee on Energy (C) the date on which the Secretaries and resent an important investment in New and Natural Resources. the landowner agree on the costs of the ex- Jersey’s economy. Last year, 65 million change and any other terms and conditions Mr. STEVENS. Mr. President, on be- visitors came to New Jersey, and the of the exchange under this section. half of myself and Senator MURKOWSKI, majority of those visitors went to the (2) NOTICE.—The Secretaries shall submit I introduce S. 49, the Alaska Flood- to the Committee on Energy and Natural Re- shore where many spent time on sec- tions of the Coastal Heritage Trail. plain and Erosion Mitigation Commis- sources of the Senate and the Committee on sion Act. Resources of the House of Representatives In the past, Federal funds have con- notice of the completion of the exchange of tributed to signs and exhibits along the For the last several years, we have Federal land and non-Federal land under this Trail which entice tourists and local seen coastal river flooding and erosion Act. New Jerseyans to explore our maritime destroy homes, public buildings, and SEC. 4. ADMINISTRATION. history, coastal habitats, and wildlife runways, threatening the traditional (a) IN GENERAL.—The Secretary of the In- migration. lifestyle of our Alaska Native people terior shall administer the non-Federal land Most people think that New Jersey is and rural residents. Over 100 feet of acquired under this Act in accordance with a crowded, highly industrialized State. land can be lost in a single storm, with the laws generally applicable to units of the homes and buildings literally being National Park System, including the Act of That is true. But New Jersey also con- August 25, 1916 (commonly known as the tains incredible beauty, such as a Bald washed into the ocean. ‘‘National Park Service Organic Act’’) (16 Eagle silhouetted against a Delaware Last year, the Federal Emergency U.S.C. 1 et seq.). Bay sunset; a lone fishing boat making Management Agency was called in (b) MAPS.— its way through Barnegat Inlet at after one storm and assessed millions (1) IN GENERAL.—The map shall be on file dawn; or the quiet, dark waters flowing of dollars in damages. and available for public inspection in the ap- slowly through the Pine Barrens. In Alaska, there are over 213 commu- propriate offices of the Secretaries. Such sights can be enjoyed in New nities that have been identified as (2) TRANSMITTAL OF REVISED MAP TO CON- Jersey, and the Coastal Heritage Trail GRESS.—Not later than 180 days after com- being affected by erosion, 4 of which pletion of the exchange, the Secretaries shall invites New Jerseyans and our many are in imminent danger and will be transmit to the Committee on Energy and visitors to enjoy these splendors. forced to relocate. Natural Resources of the Senate and the Mr. President, in the House, Con- Given the devastating impacts of ero- Committee on Resources of the House of gressman LOBIONDO is sponsoring a sion on Alaska Native villages, I held a Representatives a revised map that depicts— companion bill to this legislation, so full 2-day Appropriations field hearing (A) the Federal land and non-Federal land this is truly a bipartisan effort. The in July of 2004. Senator CONRAD BURNS exchanged under this Act; and Congressman and I have worked with of Montana, Senator JOHN SUNUNU of (B) the easement described in section 3(b). our respective committees of jurisdic- New Hampshire, and Senator LISA tion and have come to agreement on By Mr. LAUTENBERG (for him- MURKOWSKI were all in attendance. identical language in our bills. So, it is Testifying at the hearing were wit- self and Mr. CORZINE): my hope that the Senate will be able to S. 48. A bill to reauthorize appropria- nesses from the Federal Government, pass this bill promptly. Getting it State of Alaska, and representatives tions for the New Jersey Coastal Herit- passed and signed into law will help to from the villages most affected by age Trail Route, and for other pur- protect our environment and markedly coastal erosion and flooding. poses; to the Committee on Energy and improve the quality of life for millions These hearings examined the findings Natural Resources. of Americans—all at a very low cost to Mr. LAUTENBERG. Mr. President, I the Nation’s taxpayers. and recommendations from the Gov- rise today to speak about a bill that Mr. President, I ask for unanimous ernment Accounting Office, GAO, re- Senator CORZINE and I are introducing, consent that the text of the bill be port on the severe flooding and erosion the New Jersey Coastal Heritage Trail printed in the RECORD. problems faced in many Native Alaska Route bill. Our bill would reauthorize a There being no objection, the bill was villages. Congress had previously di- law based on a bill that former Senator ordered to be printed in the RECORD, as rected GAO to study flooding and ero- Bill Bradley and I first introduced in follows: sion of Alaska Native villages and to 1988. That law was extended once but S. 48 determine the extent to which these its authorization has now expired, Be it enacted by the Senate and House of Rep- villages are affected, identify Federal bringing work on the Trail to a com- resentatives of the United States of America in and State flooding and erosion pro- plete standstill. Congress assembled, grams, determine the current status of

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00129 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S236 CONGRESSIONAL RECORD — SENATE January 24, 2005 efforts to respond to flooding and ero- (B) 3 members shall be appointed by the (III) land owned by the Federal or State sion in nine villages, and identify al- Governor of the State, of whom— government; ternatives that Congress may wish to (i) 1 member shall be a nonvoting ex officio (IV) city and borough land; and consider when providing assistance for Alaska Native; and (V) other private land; and (ii) at least 1 member shall represent city (C) the establishment of procedures to ob- flooding and erosion. or borough governments; tain the view of the public on land use plan- This bill is a culmination of the GAO (C) 1 shall be appointed by the Secretary, ning needs, such as implementation and en- report and the field hearings I have shall be an employee of the Department of forcement of flood and erosion control and mentioned. It will focus the efforts of the Interior, and shall serve as Cochair- mitigation solutions, including— the Federal agencies and the State of person; (i) increased hydrologic and other special- Alaska to better serve the impacted (D) 1 member appointed by the Secretary ized data collection; and Native villages and rural residents. of Agriculture shall be an employee of the (ii) public hearings. This bill is intended to provide relief Natural Resources Conservation Service of (c) EVALUATION.—Not later than 120 days the Department of Agriculture; and for these communities. It is going to be after the date of enactment of this Act and (E) 1 member, appointed by the Secretary annually thereafter, the Commission shall a very difficult problem to solve. of Defense, shall be an employee of— evaluate specific flood and erosion cir- Mr. President, I ask unanimous con- (i) the Department of Defense; or cumstances that affect life and property in sent that the text of the bill be printed (ii) the Corps of Engineers. the State. in the RECORD. (2) DATE OF APPOINTMENTS.—The appoint- (d) RECOMMENDATIONS.—The Commission There being no objection, the bill was ment of a member of the Commission shall shall develop recommendations on— ordered to be printed in the RECORD, as be made not later than 90 days after the date (1) the development and implementation of follows: of enactment of this Act. flood and erosion control and mitigation so- (c) APPOINTMENT; VACANCIES.— S. 49 lutions in villages and communities identi- (1) APPOINTMENT.—A member of the Com- fied by the Commission as being most in Be it enacted by the Senate and House of Rep- mission shall serve at the pleasure of the ap- need of those solutions; resentatives of the United States of America in pointing authority. (2) programs and budgets of Federal and Congress assembled, (2) VACANCIES.—A vacancy on the Commis- State agencies responsible for adminis- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. sion— trating Federal and State floodplain man- (a) SHORT TITLE.—This Act may be cited as (A) shall not affect the powers of the Com- agement authorities; the ‘‘Alaska Floodplain and Erosion Mitiga- mission; and (3) the establishment of State erosion man- tion Commission Act of 2005’’. (B) shall be filled in the same manner as agement responsibilities and authorities; (b) TABLE OF CONTENTS.—The table of con- the original appointment was made. (4) changes in law, policies, and programs (d) INITIAL MEETING.—Not later than 30 tents of this Act is as follows: that the Commission determines are nec- days after the date on which all members of Sec. 1. Short title; table of contents. essary or desirable to provide an integrated the Commission have been appointed, the Sec. 2. Definitions. Federal-State erosion and flood management Commission shall hold the initial meeting of authority; TITLE I—JOINT FEDERAL-STATE FLOOD- the Commission. PLAIN AND EROSION MITIGATION COM- (e) MEETINGS.—Subject to section 102(a), (5) improving coordination and consulta- MISSION FOR ALASKA the Commission shall meet at the call of the tion between the Federal and State govern- Sec. 101. Establishment of commission. Cochairpersons. ments in making resource allocation and Sec. 102. Duties. (f) QUORUM.—A majority of the members of flood and erosion control and mitigation de- Sec. 103. Administration. the Commission shall constitute a quorum, cisions; Sec. 104. Commission personnel matters. but a lesser number of members may hold (6) ways to avoid conflict between the Sec. 105. Reports. hearings. State and Alaska Native people in the allo- Sec. 106. Termination of commission. (g) CONCURRENCE OF COCHAIRPERSONS.—A cation of resources; (7) ensuring that higher priority is given to TITLE II—FLOOD AND EROSION CONTROL decision of the Commission shall require the achieving long-term sustainability of com- AND MITIGATION concurrence of the Cochairpersons. (h) PRINCIPAL OFFICE.—The principal office munities from debilitating flood and erosion Sec. 201. Evaluation and prioritization. of the Commission shall be in the State of losses than to short-term project and infra- Sec. 202. Flood and erosion control and miti- Alaska. structure development needs, if the flood and gation. SEC. 102. DUTIES. erosion control and mitigation solution is Sec. 203. Mitigation. (a) MEETINGS.—For the first 2 years fol- publicly funded; and Sec. 204. Administration. lowing the date of enactment of this Act, the (8) ensuring that the economic and social TITLE III—AUTHORIZATION OF Commission shall meet not less than 2 times well-being of Alaska Native people and other APPROPRIATIONS per year. residents of the State is not compromised by Sec. 301. Authorization of appropriations. (b) STUDY.— a risk of erosion or flood that could be avoid- SEC. 2. DEFINITIONS. (1) IN GENERAL.—The Commission shall ed through long-term planning. conduct a study of all matters relating to— In this Act: SEC. 103. ADMINISTRATION. (A) the feasibility of alternatives for flood- (1) COMMISSION.—The term ‘‘Commission’’ (a) ADVISERS.—To assist the Commission in means the Joint Federal-State Floodplain ing or erosion assistance; and (B) the development of a policy to guide in- carrying out this Act, the Commission shall and Erosion Mitigation Commission for Alas- establish a committee of technical advisers ka established by section 101(a). frastructure investments in the Alaska Na- tive villages, cities, and boroughs that are to the Commission with expertise in— (2) ALASKA NATIVE.—The term ‘‘Alaska Na- most affected by flooding or erosion. (1) coastal engineering; tive’’ has the meaning given the term in sec- (2) the adverse impact of flood and erosion (2) MATTERS TO BE STUDIED.—The matters tion 3 of the Alaska Native Claims Settle- management; ment Act (43 U.S.C. 1602). to be studied by the Commission include— (A) flood and erosion processes; (3) rural community planning in the State; (3) ALASKA NATIVE VILLAGE.—The term (4) how city and borough governments are ‘‘Alaska Native village’’ has the meaning (B) the planning needs associated with flood and erosion processes, including identi- affected by erosion; given the term in section 3 of the Alaska Na- (5) the relationship between State and tive Claims Settlement Act (43 U.S.C. 1602). fying and making recommendations con- cerning— local governments and Alaska Native vil- (4) SECRETARY.—The term ‘‘Secretary’’ lages; and means the Secretary of the Interior. (i) specific flood and erosion circumstances that affect life and property in the State; (6) any other interest that the Commission (5) STATE.—The term ‘‘State’’ means the determines is appropriate. State of Alaska. (ii) land use regulations, including area standards for designation of flood- and ero- (b) RECORDS.— TITLE I—JOINT FEDERAL-STATE FLOOD- sion-prone land; (1) IN GENERAL.—The Commission shall PLAIN AND EROSION MITIGATION COM- (iii) uses to be made of flood- and erosion- maintain complete records of the activities MISSION FOR ALASKA prone land, and how State and Federal of the Commission. SEC. 101. ESTABLISHMENT OF COMMISSION. grants, loans, and capital improvements (2) PUBLIC INSPECTION.—Records main- (a) ESTABLISHMENT.—There is established a shall be invested in designated areas; and tained under paragraph (1) shall be available commission to be known as the ‘‘Joint Fed- (iv) how to regulate and implement the for public inspection. eral-State Floodplain and Erosion Mitiga- uses described in clause (iii) on— (c) HEARINGS.—The Commission may hold tion Commission for Alaska’’. (I) land designated as an allotment for such hearings, meet and act at such times (b) MEMBERSHIP.— Alaska Native people; and places, take such testimony, and receive (1) COMPOSITION.—The Commission shall be (II) land owned by an Alaska Native village such evidence as the Commission considers composed of 7 members, of whom— corporation or a regional village corporation advisable to carry out this title. (A) 1 member shall be the Governor of the under the Alaska Native Claims Settlement (d) INFORMATION FROM FEDERAL AGEN- State, who shall serve as Cochairperson; Act (Public Law 92-203); CIES.—

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(1) IN GENERAL.—The Commission may se- SEC. 105. REPORTS. erosion using the most cost effective means cure directly from a Federal agency such in- (a) INTERIM REPORTS.—Not later than Sep- practicable to provide the longest-term ben- formation as the Commission considers nec- tember 30 of each year, the Commission shall efit, including— essary to carry out this title. submit to Congress, the Secretary, and the (1) relocation; (2) PROVISION OF INFORMATION.—On request legislature of the State— (2) elevation; of a Cochairperson of the Commission, the (1) a report that describes the activities of (3) flood proofing; and head of the agency shall provide the informa- the Commission in the preceding calendar (4) land management alternatives. tion to the Commission. year; and SEC. 204. ADMINISTRATION. (e) GIFTS.—The Commission may accept, (2) a report that describes— (a) CONSULTATION.—The Secretary shall— use, and dispose of gifts or donations of serv- (A) any immediate need of the Commis- (1) consult with the Commission and appro- ices or property to carry out the duties of sion; and priate Federal and State agencies; and the Commission. (B) any imminent threat action directive (2) provide oversight authority, responsi- for the coordinated response to erosion and bility, and directives to agencies developing SEC. 104. COMMISSION PERSONNEL MATTERS. flooding in the case of an emergency. relocation and flood and erosion control and (a) COMPENSATION OF MEMBERS.— (b) FINAL REPORT.—Not later than Sep- mitigation plans. (1) NON-FEDERAL EMPLOYEES.—A member of tember 30, 2011, the Commission shall submit (b) VALID EXISTING RIGHTS.—This sub- the Commission who is not an officer or em- to Congress, the Secretary, and the legisla- section does not limit any right recognized ployee of the Federal Government shall be ture of the State a final report that de- under the Alaska Native Claims Settlement compensated at a rate equal to the daily scribes— Act (43 U.S.C. 1601 et seq.) that is in exist- equivalent of the annual rate of basic pay (1) the activities and findings of the Com- ence at the time of the enactment of this prescribed for level IV of the Executive mission; and Act. Schedule under section 5315 of title 5, United (2) the recommendations of the Commis- (c) AUTHORITY OF THE SECRETARY.—This States Code, for each day (including travel sion for legislation and administrative ac- title does not impair the authority of the time) during which the member is engaged in tions the Commission considers appropriate. Secretary to make contracts and grant the performance of the duties of the Com- leases, permits, rights-of-way, and ease- SEC. 106. TERMINATION OF COMMISSION. mission. ments. The Commission shall terminate on Sep- (2) FEDERAL OR STATE EMPLOYEES.—A mem- tember 30, 2011. TITLE III—AUTHORIZATION OF ber of the Commission who is an officer or APPROPRIATIONS TITLE II—FLOOD AND EROSION CONTROL employee of the Federal or State govern- SEC. 301. AUTHORIZATION OF APPROPRIATIONS. AND MITIGATION ment shall serve without compensation in (a) IN GENERAL.—There is authorized to be addition to the compensation received for SEC. 201. EVALUATION AND PRIORITIZATION. appropriated for each of fiscal years 2006 the services of the member as an officer or Not later than 120 days after the date of through 2011 such sums as are necessary to employee of the Federal or State Govern- enactment of this Act and annually there- carry out this Act, to remain available until ment. after, the Secretary, in consultation with expended. (b) TRAVEL EXPENSES.—A member of the the Commission, shall evaluate and (b) COMMISSION.—The Secretary may use Commission shall be allowed travel expenses, prioritize specific flood and erosion cir- not to exceed $250,000 of the funds made including per diem in lieu of subsistence, at cumstances that affect life and property in available under subsection (a) for the ex- rates authorized for an employee of an agen- the State. penses of the Commission, including hiring cy under subchapter I of chapter 57 of title 5, SEC. 202. FLOOD AND EROSION CONTROL AND any necessary staff. United States Code, while away from the MITIGATION. home or regular place of business of the (a) IN GENERAL.—Not later than September By Mr. INOUYE (for himself, Mr. member in the performance of the duties of 15, 2006, the Secretary, in consultation with STEVENS, Ms. CANTWELL, Mr. the Commission. the Commission, shall examine the most BURNS, Mr. LAUTENBERG, Ms. (c) STAFF.— cost-effective ways of carrying out flood and SNOWE, Mr. AKAKA, Ms. MUR- (1) IN GENERAL.—The Cochairpersons of the erosion control and mitigation solutions de- KOWSKI, Mrs. CLINTON, Mr. Commission may, without regard to the civil vised by the Commission for the 9 villages in SMITH, and Mrs. MURRAY): service laws (including regulations), appoint the State identified in the Government Ac- S. 50. A bill to authorize and and terminate an executive director and countability Office Report 04-142. strengthen the National Oceanic and such other additional personnel as are nec- (b) COST-EFFECTIVE TECHNOLOGY.—The Sec- essary to enable the Commission to perform retary, in consultation with the Commission, Atmospheric Administration’s tsunami the duties of the Commission. shall implement a solution described in sub- detection, forecast, warning, and miti- (2) CONFIRMATION OF EXECUTIVE DIRECTOR.— section (a) using the most cost-effective gation program, and for other pur- The employment of an executive director technology to protect life and property in poses; to the Committee on Commerce, shall be subject to confirmation by the Com- the State, including— Science, and Transportation. mission. (1) movement of structures; Mr. INOUYE. Mr. President, today I (3) COMPENSATION.— (2) nonstructural land management of ero- introduce the Tsunami Preparedness (A) IN GENERAL.—Except as provided in sion-prone areas; and Act with my friend and distinguished subparagraph (B), the Cochairpersons of the (3) structural erosion control techniques. colleague, Senator TED STEVENS, in our Commission may fix the compensation of the (c) GRANTS TO STATE AND LOCAL GOVERN- new capacities as Co-Chair and Chair of executive director and other personnel with- MENTS.—For any fiscal year after fiscal year out regard to the provisions of chapter 51 and 2006, the Secretary may implement a solu- the Commerce Committee. Our bill subchapter III of chapter 53 of title 5, United tion described in subsection (a) through the today provides a scientific and techno- States Code, relating to classification of po- State government or a local government by logical response to minimize the sitions and General Schedule pay rates. making a grant to a government using the threats posed by tsunami to our own (B) MAXIMUM RATE OF PAY.—The rate of remainder of any funds appropriated to the shores, and the coastal communities of pay for the executive director and other per- Secretary for appropriate flood and erosion the world, as exemplified by the appall- sonnel shall not exceed the rate payable for control and mitigation solutions. ing scope of the Indian Ocean tragedy. level V of the Executive Schedule under sec- (d) FACTORS.—In implementing a solution The bill builds on our work to establish tion 5316 of title 5, United States Code. under this section, the Secretary, in con- a system in the Pacific that is a model sultation with the Commission, shall con- (d) DETAIL OF FEDERAL GOVERNMENT EM- for the world, and also provides for its PLOYEES.— sider— (1) IN GENERAL.—An employee of the Fed- (1) the design life of structural erosion con- expansion and improvement to repair eral Government may be detailed to the trol projects; gaps that have been identified recently. Commission without reimbursement. (2) the cost effectiveness of all erosion con- Protecting human life and property (2) CIVIL SERVICE STATUS.—The detail of trol projects; and from natural disaster requires the abil- the employee shall be without interruption (3) the availability of a revolving loan fund ity to reliably detect and forecast, the or loss of civil service status or privilege. administered by the State for relocation, capacity to broadcast warnings in a (e) PROCUREMENT OF TEMPORARY AND elevation, and flood proofing of flood- or ero- timely and informative manner, and INTERMITTENT SERVICES.—The Cochair- sion-prone structures. the knowledge in communities of how persons of the Commission may procure tem- (e) FEDERAL SHARE.—The Federal share of the cost of carrying out a project or activity to respond and evacuate to safety. porary and intermittent services in accord- Above all, however, it requires the will- ance with section 3109(b) of title 5, United under this section shall be 75 percent. ingness to invest resources to prepare States Code, at rates for individuals that do SEC. 203. MITIGATION. not exceed the daily equivalent of the annual (a) IN GENERAL.—The Secretary, in con- for a threat that is largely unseen and rate of basic pay prescribed for level V of the sultation with the Commission, may take unpredictable until the last moment, Executive Schedule under section 5316 of any action necessary to mitigate the loss of when a monstrous wave actually that title. structures and infrastructure from flood and strikes.

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Now, as be- A critical component of the bill re- ability in the Pacific Ocean, which is fore, Senator STEVENS and I have come quires NOAA to upgrade and modernize the site of 85 percent of the world’s tsu- together to lead the charge toward na- the U.S. tsunami detection system by nami activity, and because Alaska, tional and international tsunami pre- December 2007, as well as provide ac- perched on the northern edge of the paredness. countability for the long-term oper- Pacific’s Ring of Fire, suffers frequent Our legislation today formally au- ation of the system. NOAA is required tsunami-generating earthquakes. thorizes NOAA to establish, operate, to repair and upgrade the system, en- In order to protect local commu- and maintain a dependable national suring deployment of existing deep nities, Hawaii established in 1949 a tsu- tsunami warning system that would ocean detection buoys and related de- nami warning center, following a trag- provide maximum tsunami detection tection equipment, as well as notify ic Hilo tsunami. In response to the capability for the nation. The system Congress upon any equipment or sys- Good Friday earthquake and tsunami would build on the model established in tem failures that will impair regional of 1964, which accounted for 90 percent the Pacific, and provide for its repair, detection, and of significant contractor of the deaths in the state that year, expansion and modernization by the failures or delays. In addition, the bill Alaska followed suit by establishing an close of calendar year 2007. The system calls for the National Academy of observatory in Palmer, Alaska, in 1967. would include four components: an ex- Sciences to review the system for fur- Collaborations between the two centers panded and upgraded detection and ther modernization recommendations. and other partners led to a nascent ca- warning system, a federal-state tsu- The bill recognizes the need for glob- pacity for predicting and warning nami hazard mitigation program, a al coordination on tsunami prepared- coastal communities about potential tsunami research program, and a mod- ness, requiring NOAA, and the inter- tsunami in Alaska and Hawaii and be- ernization and upgrade program. In ad- agency coordinating committee of the yond. dition, the bill would direct NOAA to U.S. Tsunami Hazard Mitigation Pro- As we came to understand the broad- provide any necessary technical or gram, to provide technical assistance er threat that tsunami posed, TED STE- other assistance to international ef- and advice to international entities as VENS and I worked together to pass leg- forts to establish regional systems in part of an international effort to de- islation in 1994 to direct the National other parts of the world, including the velop a fully functional global tsunami Oceanic and Atmospheric Administra- Indian Ocean. warning system. tion (NOAA) to develop a Tsunami Haz- The detection and warning system Finally, the bill authorizes $35 mil- ard Mitigation Program. established by the bill would cover the lion annually for six years to support We are pleased to report that the pro- Pacific Ocean region, as well as the At- gram has laid the foundation for tsu- these activities. Through this legisla- lantic-Caribbean-Gulf of Mexico region, nami preparedness. Through its Pacific tion, the work Senator STEVENS and I and incorporate a variety of seismic Marine Environmental Laboratory started over ten years ago will step up and tsunami detection technologies, in- (PMEL), NOAA has developed Deep to the next level, and provide our na- cluding deep ocean buoys, as well as ocean Assessment and Reporting of tion with coverage and protection that encompass tsunami warning centers Tsunami—or ‘‘DART’’—buoys, which it needs, while fulfilling our duties as charged with collecting and analyzing accurately measure the subtle vari- citizens of the global community. the data and distributing warnings—in- ations in the ocean’s sea level caused I ask unanimous consent that the cluding the existing Pacific Tsunami by tsunami traveling over open water. full text of the bill be printed in the Warning Center in Hawaii and the West With these measurements, as well as RECORD. readings from coastal gauges, the Coast/Alaska Tsunami Warning Center There being no objection, the bill was mathematical models PMEL and oth- in Alaska, as well as any others ordered to be printed in the RECORD, as ers have developed can forecast tsu- deemed necessary by the NOAA Admin- follows: nami direction, speed, and inundation istrator. S. 50 The bill also formally authorizes with astonishing accuracy. Although Be it enacted by the Senate and House of Rep- NOAA’s Tsunami Hazard Mitigation the worldwide network of seismic sen- resentatives of the United States of America in Program and its community-based tsu- sors operated by the U.S. Geological Congress assembled, nami hazard mitigation program to im- Survey (USGS) provides excellent no- SECTION 1. SHORT TITLE. tice of earthquakes with the potential prove tsunami preparedness of at-risk This Act may be cited as the ‘‘Tsunami to generate tsunami, the DART buoys areas. The bill directs a Federal-State Preparedness Act’’. represent a next-generation approach coordinating committee for the pro- SEC. 2. FINDINGS AND PURPOSES. (a) FINDINGS.—The Congress finds the fol- to detection and forecasting of tsunami gram, consisting (FEMA), the United States Geological Survey (USGS), the lowing: that will form the backbone of our do- (1) Tsunami are a series of large waves of mestic preparedness. National Science Foundation (NSF), and affected coastal states and terri- long wavelength created by the displacement Interpreting these data and issuing of water by violent undersea disturbances warnings are Hawaii’s Pacific Tsunami tories, to work together to improve in- such as earthquakes, volcanic eruptions, Warning Center, and Alaska’s West undation mapping, community out- landslides, explosions, and the impact of cos- Coast/Alaska Tsunami Warning Center, reach and education, and promote and mic bodies. which jointly have the capacity to integrate tsunami warning and mitiga- (2) Tsunami have caused, and can cause in cover our domestic shores, and, at the tion measures, including rescue and re- the future, enormous loss of human life, in- same time, to reach out to all cooper- covery guidelines. The program would jury, destruction of property, and economic and social disruption in coastal and island ating nations of the world. provide grants to states to ensure the program elements are implemented in communities. Forecasting and warning networks, (3) While 85 percent of tsunami occur in the however, depend on ears who know how coastal communities. Pacific Ocean, and coastal and island com- to respond, and so the Tsunami Hazard The bill also requires NOAA to estab- munities in this region are the most vulner- Mitigation Program has partnered with lish, along with other agencies and aca- able to the destructive results, tsunami can states and local authorities to produce demic institutions, a tsunami research occur at any point in any ocean or related inundation mapping, develop evacu- program to continuously improve de- body of water where there are earthquakes, ation routes, and conduct tsunami edu- tection, prediction, communication, volcanoes, or any other activity that dis- cation. As a result of much hard work, and mitigation science and technology places a large volume of water. fifteen counties up and down the west to support tsunami forecasts and warn- (4) A number of States and territories are ings. This program would also focus on subject to the threat of tsunamis, including coast, and in Alaska and Hawaii have Alaska, California, Hawaii, Oregon, Wash- become national and world leaders by the potential for improved communica- ington, American Samoa, the Common- becoming ‘‘tsunami ready.’’ tions systems for tsunami and other wealth of the Northern Mariana Islands, The appalling scope of the Indian hazard warnings, including telephones, Guam, Puerto Rico, and the U.S. Virgin Is- Ocean tragedy illustrates the impor- wireless and satellite technology, the lands.

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(5) The National Oceanic and Atmospheric measurement and assessment technology, (3) COMPONENTS.—The systems shall— Administration is responsible for maintain- and increase community preparedness. (A) utilize an array of deep ocean detection ing a tsunami detection and warning system (12) Tsunami warning and preparedness ca- buoys, including redundant and spare buoys; for the Nation, issuing warnings to United pability can be developed in other vulnerable (B) include an associated tide gauge and States communities at risk from tsunami, areas of the world, such as the Indian Ocean, water level system designed for long-term and preparing those communities to respond by identifying tsunami hazard zones, edu- continuous operation tsunami transmission appropriately, through— cating populations, developing alert and no- capability; (A) the Pacific Tsunami Warning Center in tification communications infrastructure, (C) provide for establishment of a coopera- Ewa Beach, Hawaii, which serves as a warn- and by deploying near real-time tsunami de- tive effort between the National Oceanic and ing center for Hawaii, all other United tection sensors and gauges, establishing haz- Atmospheric Administration and the United States assets in the Pacific, and Puerto Rico; ard communication and warning networks, States Geological Survey under which the (B) the Alaska/West Coast Tsunami Warn- expanding global monitoring of seismic ac- Geological Survey provides rapid and reli- ing Center in Palmer, Alaska, which is re- tivity, encouraging the increased exchange able seismic information to the Administra- sponsible for issuing warnings for Alaska, of seismic and tidal data between nations, tion from international and domestic seis- British Columbia, California, Oregon, and and improving international coordination mic networks; Washington; when a tsunami is detected. (D) provide for information and data proc- (C) the Federal-State national tsunami (13) UNESCO has recognized the need to es- essing through the tsunami warning centers hazard mitigation program; tablish tsunami warning systems for regions established under subsection (c); (D) a tsunami research and assessment pro- beyond the Pacific Basin that are vulnerable (E) be integrated into United States and gram, including programs conducted by the to tsunami, including the Indian Ocean, and global ocean and earth observing systems; Pacific Marine Environmental Laboratory; has convened a working group to lead an ef- and (E) the TsunamiReady Program, which fort to expand the International Tsunami (F) provide a communications infrastruc- educates and prepares communities for sur- Warning System in the Pacific to such vul- ture for at-risk tsunami communities that vival before and during a tsunami; and nerable regions. supports rapid and reliable alert and notifi- (F) other related programs. (14) The international community and all cation to the public such as the National (6) The National Oceanic and Atmospheric vulnerable nations should take coordinated Oceanic and Atmospheric Administration Administration also represents the United efforts to establish and participate in re- weather radio and the All Hazard Alert States as a member of the International Co- gional tsunami warning systems and other Broadcasting Radio. ordination Group for the Tsunami Warning hazard warnings systems developed to meet (c) TSUNAMI WARNING CENTERS.— System in the Pacific, administered by the the goals of the United Nations Inter- (1) IN GENERAL.—The Administrator shall Intergovernmental Oceanographic Commis- national Strategy for Disaster Reduction. establish tsunami warning centers to provide sion of UNESCO, for which the Pacific Tsu- (b) PURPOSES.—The purposes of this Act a link between the detection and warning nami Warning Center acts as the operational are— system and the tsunami hazard mitigation center and shares seismic and water level in- (1) to improve tsunami detection, forecast, program established under section 4 includ- formation with 26 member states, and main- warnings, notification, preparedness, and ing— tains UNESCO’s International Tsunami In- mitigation in order to protect life and prop- (A) a Pacific Tsunami Warning Center in formation Center, in Honolulu, Hawaii, erty both in the United States and elsewhere Hawaii; which provides technical and educational as- in the world; (B) a West Coast and Alaska Tsunami sistance to member states. (2) to improve and modernize the existing Warning Center in Alaska; and (7) The Tsunami Warning Centers receive Pacific Tsunami Warning System to increase (C) any additional warning centers deter- seismographic information from the Global coverage, reduce false alarms and increase mined by the Administrator to be necessary. Seismic Network, an international system of accuracy of forecasts and warnings, and ex- (2) RESPONSIBILITIES.—The responsibilities earthquake monitoring stations, from the pand detection and warning systems to in- of each tsunami warning center shall in- United States Geological Survey National clude other vulnerable States and United clude— Earthquake Information Center, and from States territories, including the Caribbean/ (A) continuously monitoring data from cooperative regional seismic networks, and Atlantic/Gulf region; seismological, deep ocean, and tidal moni- use these data to issue tsunami warnings and (3) to increase and accelerate mapping, toring stations; integrate the information with data from modeling, research, assessment, education, (B) evaluating earthquakes that have the their own tidal and deep ocean monitoring and outreach efforts in order to improve potential to generate tsunami; stations, to cancel or verify the existence of forecasting, preparedness, mitigation, re- (C) evaluating deep ocean buoy data and a damaging tsunami. Warnings are dissemi- sponse, and recovery of tsunami and related tidal monitoring stations for indications of nated by the National Oceanic and Atmos- coastal hazards; tsunami resulting from sources other than pheric Administration to State emergency (4) to provide technical and other assist- earthquakes; and operation centers. ance to speed international efforts to estab- (D) disseminating information and warning (8) Current gaps in the International Tsu- lish regional tsunami warning systems in bulletins appropriate for local and distant nami Warning System, such as the lack of vulnerable areas worldwide, including the In- tsunamis to government agencies and the regional warning systems in the Indian dian Ocean; and public and alerting potentially impacted Ocean, the southwest Pacific Ocean, Central (5) to improve Federal, State, and inter- coastal areas for evacuation. and South America, the Mediterranean Sea, national coordination for tsunami and other (d) TRANSFER OF TECHNOLOGY; MAINTE- and Caribbean, pose risks for coastal and is- coastal hazard warnings and preparedness. NANCE AND UPGRADES.—In carrying out this land communities. SEC. 3. TSUNAMI DETECTION AND WARNING SYS- section, the Administrator shall— (9) The tragic and extreme loss of life expe- TEM. (1) promulgate specifications and stand- rienced by countries in the Indian Ocean fol- (a) IN GENERAL.—The Administrator of the ards for forecast, detection, and warning sys- lowing the magnitude 9.0 earthquake and re- National Oceanic and Atmospheric Adminis- tems, including detection equipment; sulting tsunami in that region on December tration shall operate regional tsunami detec- (2) develop and execute a plan for the 26, 2004, illustrates the destructive con- tion and warning systems for the Pacific transfer of technology from ongoing research sequences which can occur in the absence of Ocean region and for the Atlantic Ocean, to long-term operations; an effective tsunami warning and notifica- Caribbean, and Gulf of Mexico region that (3) ensure that detection equipment is tion system. will provide maximum detection capability maintained in operational condition to ful- (10) An effective tsunami warning and noti- for United States coastal tsunami. fill the forecasting, detection and warning fication system is part of a multi-hazard dis- (b) SYSTEM REQUIREMENTS.— requirements of the regional tsunami detec- aster warning and preparedness program and (1) PACIFIC SYSTEM.—The Pacific tsunami tion and warning systems; requires near real-time seismic, sea level, warning system shall cover the entire Pa- (4) obtain, to the greatest extent prac- and oceanographic data, high-speed data cific Ocean area, including the Western Pa- ticable, priority treatment in budgeting for, analysis capabilities, a high-speed tsunami cific, the Central Pacific, the North Pacific, acquiring, transporting, and maintaining warning communication system, a sustained the South Pacific, and the East Pacific and weather sensors, tide gauges, water level program of education and risk assessment, Arctic areas. gauges, and tsunami buoys incorporated into and an established local communications in- (2) ATLANTIC, CARIBBEAN, AND GULF OF MEX- the system including obtaining ship time; frastructure for timely and effective dissemi- ICO SYSTEM.—The Atlantic, Caribbean, and and nation of warnings to activate evacuation of Gulf system shall cover areas of the Atlantic (5) ensure integration of the tsunami de- tsunami hazard zones. Ocean, Caribbean Sea, and the Gulf of Mex- tection system with other United States and (11) The Tsunami Warning System for the ico that the Administrator determines— global ocean and coastal observation sys- Pacific is a model for other regions of the (A) to be geologically active, or to have tems, the global earth observing system of world to adopt, and can be expanded and significant potential for geological activity; systems, global seismic networks, and the modernized to increase detection, forecast, and Advanced National Seismic System. and warning capabilities for vulnerable (B) to pose measurable risks of tsunamis (e) CERTIFICATION.—Amounts appropriated states and territories, reduce the incidence for States along the coastal areas of the At- for any fiscal year pursuant to section 8 to of costly false alarms, improve reliability of lantic Ocean or the Gulf of Mexico. carry out this section may not be obligated

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00133 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S240 CONGRESSIONAL RECORD — SENATE January 24, 2005 or expended for the acquisition of services ministration shall, in coordination with national tsunami hazard mitigation pro- for construction or deployment of tsunami other agencies and academic institutions, es- gram. detection equipment unless the Adminis- tablish a tsunami research program to de- (d) EXTERNAL REVIEW.—The National Acad- trator certifies in writing to the Senate velop detection, prediction, communication, emy of Science shall review the tsunami de- Committee on Commerce, Science, and and mitigation science and technology that tection, forecast, and warning system oper- Transportation and the House of Representa- supports tsunami forecasts and warnings, in- ated by the National Oceanic and Atmos- tives Committee on Science within 60 cal- cluding advanced sensing techniques, infor- pheric Administration under this Act to as- endar days after the date on which the Presi- mation and communication technology, data sess further modernization and coverage dent submits the Budget of the United collection, analysis and assessment for tsu- needs, as well as long-term operational reli- States for that fiscal year to the Congress nami tracking and numerical forecast mod- ability issues, taking into account measures that— eling that will— implemented under this Act, and transmit a (1) each contractor for such services has (1) help determine— report containing its recommendations, in- met the requirements of the contract for (A) whether an earthquake or other seis- cluding an estimate of the costs of imple- such construction or deployment; mic event will result in a tsunami; and menting those recommendations, to the Sen- (2) the equipment to be constructed or de- (B) the likely path, severity, duration, and ate Committee on Commerce, Science, and ployed is capable of becoming fully oper- travel time of a tsunami; Transportation and the House of Representa- ational without the obligation or expendi- (2) develop techniques and technologies tives Committee on Science within 24 ture of additional appropriated funds; and that may be used to communicate tsunami months after the date of enactment of this (3) the Administrator does not reasonably forecasts and warnings as quickly and effec- Act. foresee unanticipated delays in the deploy- tively as possible to affected communities; SEC. 7. GLOBAL TSUNAMI WARNING AND MITIGA- ment and operational schedule specified in (3) develop techniques and technologies to TION NETWORK. the contract. support evacuation products, including real- (a) INTERNATIONAL TSUNAMI WARNING SYS- time notice of the condition of critical infra- TEM.—The Administrator of the National SEC. 4. TSUNAMI HAZARD MITIGATION PROGRAM. Oceanic and Atmospheric Administration, in (a) IN GENERAL.—The Administrator of the structure along tsunami evacuation routes for public officials and first responders; and coordination with other members of the National Oceanic and Atmospheric Adminis- United States Interagency Committee of the tration is authorized to conduct a commu- (4) develop techniques for utilizing remote sensing technologies in rescue and recovery National Tsunami Mitigation Program, shall nity-based tsunami hazard mitigation pro- provide technical assistance and advice to gram to improve tsunami preparedness of at- operations. (b) COMMUNICATIONS TECHNOLOGY.—The Ad- the Intergovernmental Oceanographic Com- risk areas. mission of UNESCO, the World Meteorolog- (b) COORDINATING COMMITTEE.—In con- ministrator, in consultation with in con- sultation with the Assistant Secretary of ical Organization, and other international ducting the program, the Administrator entities, as part of international efforts to shall establish a coordinating committee Commerce for Communications and Informa- tion and the Federal Communications Com- develop a fully functional global tsunami comprising representatives of— warning system comprised of regional tsu- (1) the National Oceanic and Atmospheric mission, shall investigate the potential for improved communications systems for tsu- nami warning networks, modeled on the Administration; International Tsunami Warning System of (2) the United States Geological Survey; nami and other hazard warnings by incor- porating into the existing network a full the Pacific. (3) the Federal Emergency Management range of options for providing those warn- (b) DETECTION EQUIPMENT; TECHNICAL AD- Agency; ings to the public, including, as appro- VICE.—In carrying out this section, the Ad- (4) the National Science Foundation; and priate— ministrator— (5) affected coastal States and territories. (1) telephones, including special alert (1) shall give priority to assisting nations (c) PROGRAM COMPONENTS.—The program in identifying vulnerable coastal areas, cre- shall— rings; (2) wireless and satellite technology, in- ating inundation maps, obtaining or design- (1) improve the quality and extent of inun- ing real-time detection and reporting equip- dation mapping, including assessment of vul- cluding cellular telephones and pagers; (3) the Internet, including e-mail; ment, and establishing communication and nerable inner coastal areas; warning networks and contact points in each (2) promote and improve community out- (4) automatic alert televisions and radios; (5) innovative and low-cost combinations vulnerable nation; and reach and education networks and programs (2) may establish a process for transfer of to ensure community readiness, including of such technologies that may provide access to remote areas; and detection and communication technology to the development of multi-hazard risk and affected nations for the purposes of estab- vulnerability assessment training and deci- (6) other technologies that may be devel- oped. lishing the international tsunami warning sion support tools, implementation of tech- system. nical training and public education pro- SEC. 6. TSUNAMI SYSTEM UPGRADE AND MOD- ERNIZATION. (c) DATA-SHARING REQUIREMENT.—The Ad- grams, and provide for certification of pre- ministrator may not provide assistance (a) SYSTEM UPGRADES.—The Administrator pared communities; of the National Oceanic and Atmospheric Ad- under this section for any region unless all (3) integrate tsunami preparedness and ministration shall— affected nations in that region participating mitigation programs into ongoing hazard (1) authorize and direct the immediate re- in the tsunami warning network agree to warning and risk management programs in pair of existing deep ocean detection buoys share relevant data associated with the de- affected areas including the National Re- and related components of the system; velopment and operation of the network. sponse Plan; (d) RECEIPT OF INTERNATIONAL REIMBURSE- (2) ensure the deployment of an array of (4) promote the adoption of tsunami warn- MENT AUTHORIZED.—The Administrator may deep ocean detection buoys in the regions de- ing and mitigation measures by Federal, accept payment to, or reimbursement of, the scribed in section 3(a) of this Act; State, tribal, and local governments and National Oceanic and Atmospheric Adminis- (3) ensure expansion or upgrade of the tide non-governmental entities through a grant tration in cash or in kind from international gauge network in the regions described in program for training, development of guide- organizations and foreign authorities, or section 3(a); and lines, and other purposes; payment or reimbursement made on behalf (4) complete the upgrades not later than (5) through the Federal Emergency Man- of such an authority, for expenses incurred December 31, 2007. by the Administrator in carrying out any ac- agement Agency as the lead agency, develop (b) CONGRESSIONAL NOTIFICATIONS.—The tsunami specific rescue and recovery guide- Administrator shall notify the Senate Com- tivity under this Act. Any such payments or lines for the National Response Plan, includ- mittee on Commerce, Science, and Transpor- reimbursements shall be considered a reim- ing long-term mitigation measures, edu- tation and the House of Representatives bursement to the appropriated funds of the cational programs to discourage develop- Committee on Science of— Administration. ment in high-risk areas, and use of remote (1) impaired regional detection coverage SEC. 8. AUTHORIZATION OF APPROPRIATIONS. sensing and other technology in rescue and due to equipment or system failures; and There are authorized to be appropriated to recovery operations; (2) significant contractor failures or delays the Administrator of the National Oceanic (6) require budget coordination, through in completing work associated with the tsu- and Atmospheric Administration $35,000,000 the Administration, to carry out the pur- nami detection and warning system. for each of fiscal years 2006 through 2012 to poses of this Act and to ensure that partici- (c) ANNUAL REPORT.—The Administrator carry out this Act. pating agencies provide necessary funds for shall transmit an annual report to the Sen- Æ matters within their respective areas of au- ate Committee on Commerce, Science, and Mr. President, the Tsunami Pre- thority and expertise; and Transportation and the House of Representa- paredness Act, S. 50, will authorize (7) provide for periodic external review of tives Committee on Science the status of the the program and for inclusion of the results much of the work that Senator INOUYE tsunami detection and warning system, in- and I have done on the Appropriations of such reviews in the report required by sec- cluding accuracy, false alarms, equipment tion 6(c). failures, improvements over the previous Committee. It establishes a National SEC. 5. TSUNAMI RESEARCH PROGRAM. year, and goals for further improvement (or Tsunami Hazard Mitigation Program (a) ESTABLISHMENT.—The Administrator of plans for curing failures) of the system, as in the National Oceanic and Atmos- the National Oceanic and Atmospheric Ad- well as progress and accomplishments of the pheric Administration. The recent

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My bill both meaningful and important to the community has a communication would provide the same benefits for those concerned because it serves as a and coordination plan in case of a Tsu- veterans with 100 percent service-con- reminder that our Nation has not for- nami event. nected disabilities. gotten their sacrifices. The Tsunami Preparedness Act pro- We owe these heroic men and women I ask unanimous consent that the vides the essential component of any who have given so much to our country text of my bill be printed in the warning system—a program for out- a debt of gratitude. Of course, we can RECORD. reach and education to inform poten- never repay them for the sacrifices There being no objection, the bill was tially Tsunami-impacted communities they have made on behalf of our Na- ordered to be printed in the RECORD, as and for these coastal areas to plan ac- tion, but we can surely try to make follows: cordingly. their lives more pleasant and fulfilling. S. 59 I have worked closely with Senator One way in which we can help is to ex- Be it enacted by the Senate and House of Rep- INOUYE on this legislation and it is an tend military travel privileges to these resentatives of the United States of America in example of how we plan to coordinate distinguished American veterans. I Congress assembled, on bills from the Commerce Com- have received numerous letters from SECTION 1. USE OF COMMISSARY AND EX- mittee. This legislation also represents all over the country attesting to the CHANGE STORES BY CERTAIN DIS- ABLED FORMER PRISONERS OF the importance of tsunami detection importance attached to this issue by WAR. and early warning for our States, both veterans. Therefore, I ask that my col- (a) IN GENERAL.—Chapter 54 of title 10, of which have experienced deadly leagues show their concern and join me United States Code, is amended by inserting tsunamis in the past and are ever vigi- in saying ‘‘thank you’’ by supporting after section 1064 the following new section: lant to remain prepared for future pos- this legislation. ‘‘§ 1064a. Use of commissary and exchange sible events. I ask unanimous consent that the stores by certain disabled former prisoners The administration released its plan text of my bill be printed in the of war for an improved tsunami monitoring RECORD. ‘‘(a) IN GENERAL.—Under regulations pre- system on January 14, 2005, commit- There being no objection, the bill was scribed by the Secretary of Defense, former prisoners of war described in subsection (b) ting $37.5 million to improving early ordered to be printed in the RECORD, as follows: may use commissary and exchange stores. detection and warning of tsunami ‘‘(b) COVERED INDIVIDUALS.—Subsection (a) events. The administration’s proposal S. 58 applies to any former prisoner of war who— is a good one and this bill will build on Be it enacted by the Senate and House of Rep- ‘‘(1) separated from active duty in the many of the commitments made in resentatives of the United States of America in armed forces under honorable conditions; their plan. In addition, the bill im- Congress assembled, and proves the federal coordination and dis- SECTION 1. TRAVEL ON MILITARY AIRCRAFT OF ‘‘(2) has a service-connected disability CERTAIN DISABLED FORMER MEM- rated by the Secretary of Veterans Affairs at semination of tsunami information and BERS OF THE ARMED FORCES. research. It establishes a multi-agency 30 percent or more. (a) IN GENERAL.—Chapter 53 of title 10, ‘‘(c) DEFINITIONS.—In this section: task force consisting of representatives United States Code, is amended by inserting ‘‘(1) The term ‘former prisoner of war’ has from NOAA, FEMA, USGS, NSF and after section 1060b the following new section: the meaning given that term in section potentially impacted coastal states and ‘‘§ 1060c. Travel on military aircraft: certain 101(32) of title 38. territories. disabled former members of the armed ‘‘(2) The term ‘service-connected’ has the The tsunami preparedness act will forces meaning given that term in section 101(16) of expand tsunami research, and consist- ‘‘The Secretary of Defense shall permit title 38.’’. ently upgrade and maintain the im- any former member of the armed forces who (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is proved system, which would cover the is entitled to compensation under the laws administered by the Secretary of Veterans amended by inserting after the item relating Pacific and Atlantic-Caribbean-Gulf of to section 1064 the following new item: Mexico regions. In an effort to lend Affairs for a service-connected disability rated as total to travel, in the same manner ‘‘1064a. Use of commissary and exchange help internationally, the bill also di- and to the same extent as retired members of stores by certain disabled rects NOAA to assist other countries the armed forces, on unscheduled military former prisoners of war.’’. that could be impacted by tsunamis flights within the continental United States and build on the United States efforts and on scheduled overseas flights operated By Mr. FEINGOLD: to establish an international earth ob- by the Air Mobility Command. The Sec- S. 60. A bill to repeal the provision of serving system. retary of Defense shall permit such travel on law that provides automatic pay ad- It is a pleasure to work with my good a space-available basis.’’. justments for Members of Congress; to friend from Hawaii on this important (b) CLERICAL AMENDMENT.—The table of the Committee on Homeland Security sections at the beginning of such chapter is and Governmental Affairs. legislation. amended by inserting after the item relating to section 1060b the following new item: Mr. FEINGOLD. Mr. President, I am By Mr. INOUYE: pleased to reintroduce legislation that ‘‘1060c. Travel on military aircraft: certain S. 58. A bill to amend title 10, United disabled former members of the would put an end to automatic cost-of- States Code, to permit former members armed forces.’’. living adjustments for congressional of the Armed Forces who have a serv- pay. ice-connected disability rated as total By Mr. INOUYE: As I have noted when I raised this to travel on military aircraft in the S. 59. A bill to amend title 10, United issue in past years, it is an unusual same manner and to the same extent as States Code, to authorize certain dis- thing to have the power to raise our retired members of the Armed Forces abled former prisoners of war to use own pay. Most of our constituents do are entitled to travel on such aircraft; Department of Defense commissary not have that power. And that this to the Committee on Armed Services. and exchange stores; to the Committee power is so unusual is good reason for Mr. INOUYE. Mr. President, today I on Armed Services. the Congress to exercise that power am reintroducing a bill which is of Mr. INOUYE. Mr. President, today I openly, and to exercise it subject to great importance to a group of patri- am reintroducing legislation to enable regular procedures that include debate, otic Americans. This legislation is de- those former prisoners of war who have amendment, and a vote on the record. signed to extend space-available travel been separated honorably from their I regret to say, that current law per- privileges on military aircraft to those respective services and who have been mits Congress to avoid that public de- who have been totally disabled in the rated as having a 30 percent service- bate and vote. All that is necessary for service of our country. connected disability to have the use of Congress to get a pay raise is that

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00135 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S242 CONGRESSIONAL RECORD — SENATE January 24, 2005 nothing be done to stop it. The annual bosses, the people of Wisconsin, give nized as independent providers of men- pay raise takes effect unless Congress me one at the ballot box. That is the tal health care throughout the health acts. spirit of the 27th amendment. The care system. It is time to correct the This stealth pay raise mechanism stealth pay raises like the one that disparate reimbursement treatment of began with a change Congress enacted Congress allowed last year, at a min- this profession under Medicare. in the Ethics Reform Act of 1989. In imum, certainly violate the spirit of I ask unanimous consent that the section 704 of that act, Members of that amendment. text of this bill be printed in the Congress voted to make themselves en- This practice must end. This bill will RECORD. titled to an annual raise equal to half end it. Senators and Congressmen There being no objection, the bill was a percentage point less than the em- should have to vote up-or-down to raise ordered to be printed in the RECORD, as ployment cost index, one measure of congressional pay. My bill would sim- follows: inflation. ply require us to vote in the open. We S. 61 It is true, that on occasion Congress owe our constituents nothing less. Be it enacted by the Senate and House of Rep- has voted to deny itself the raise, and I ask unanimous consent that the resentatives of the United States of America in the traditional vehicle for the pay raise text of the bill be printed in the Congress assembled, vote is the Treasury appropriations RECORD. SECTION 1. SHORT TITLE. bill. But that vehicle is not always There being no objection, the bill was This Act may be cited as the ‘‘Equity for made available to those who want a ordered to be printed in the RECORD, as Clinical Social Workers Act of 2005’’. public debate and vote on the matter. follows: SEC. 2. IMPROVED REIMBURSEMENT FOR CLIN- Just last year, for example, the Treas- ICAL SOCIAL WORKER SERVICES S. 60 UNDER MEDICARE. ury appropriations bill was slipped into Be it enacted by the Senate and House of Rep- (a) IN GENERAL.—Section 1833(a)(1)(F)(ii) of the massive Omnibus Appropriations resentatives of the United States of America in the Social Security Act (42 U.S.C. conference report, and thus it was com- Congress assembled, 1395l(a)(1)(F)(ii)) is amended to read as fol- pletely shielded from amendment. Sen- SECTION 1. ELIMINATION OF AUTOMATIC PAY lows: ‘‘(ii) the amount determined by a fee ators were effectively prevented from ADJUSTMENTS FOR MEMBERS OF schedule established by the Secretary,’’. offering an amendment to force an up CONGRESS. (b) DEFINITION OF CLINICAL SOCIAL WORKER or down vote on the annual pay raise. (a) IN GENERAL.—Paragraph (2) of section SERVICES EXPANDED.—Section 1861(hh)(2) of 601(a) of the Legislative Reorganization Act the Social Security Act (42 U.S.C. And that situation was not unique. of 1946 (2 U.S.C. 31) is repealed. Getting a vote on the annual con- 1395x(hh)(2)) is amended by striking ‘‘serv- (b) TECHNICAL AND CONFORMING AMEND- ices performed by a clinical social worker (as gressional pay raise is a haphazard af- MENTS.—Section 601(a)(1) of such Act is defined in paragraph (1))’’ and inserting fair at best, and it should not be that amended— ‘‘such services and such services and supplies way. The burden should not be on those (1) by striking ‘‘(a)(1)’’ and inserting ‘‘(a)’’; furnished as an incident to such services per- who seek a public debate and recorded (2) by redesignating subparagraphs (A), (B), formed by a clinical social worker (as de- vote on the Member pay raise. On the and (C) as paragraphs (1), (2), and (3), respec- fined in paragraph (1))’’. contrary, Congress should have to act tively; and (c) CLINICAL SOCIAL WORKER SERVICES NOT (3) by striking ‘‘as adjusted by paragraph TO BE INCLUDED IN INPATIENT HOSPITAL SERV- if it decides to award itself a hike in (2) of this subsection’’ and inserting ‘‘ad- pay. This process of pay raises without ICES.—Section 1861(b)(4) of the Social Secu- justed as provided by law’’. rity Act (42 U.S.C. 1395x(b)(4)) is amended by accountability must end. (c) EFFECTIVE DATE.—This section shall striking ‘‘and services’’ and inserting ‘‘clin- This issue is not a new question. It take effect on February 1, 2007. ical social worker services, and services’’. was something that our Founders con- (d) TREATMENT OF SERVICES FURNISHED IN sidered from the beginning of our Na- By Mr. INOUYE: INPATIENT SETTING.—Section 1832(a)(2)(B)(iii) tion. In August 1789, as part of the S. 61. A bill to amend title XVIII of of the Social Security Act (42 U.S.C. package of 12 amendments advocated the Social Security Act to provide im- 1395k(a)(2)(B)(iii)) is amended by striking by James Madison that included what proved reimbursement for clinical so- ‘‘and services’’ and inserting ‘‘clinical social has become our Bill of Rights, the cial worker services under the medi- worker services, and services’’. care program; to the Committee on Fi- (e) EFFECTIVE DATE.—The amendments House of Representatives passed an made by this section shall apply to payments amendment to the Constitution pro- nance. made for clinical social worker services fur- viding that Congress could not raise its Mr. INOUYE. Mr. President, today I nished on or after January 1, 2006. pay without an intervening election. am introducing legislation to amend On September 9, 1789, the Senate Title XVIII of the Social Security Act By Mr. INOUYE: passed that amendment. In late Sep- to correct discrepancies in the reim- S. 62. A bill for the relief of Jim K. tember 1789, Congress submitted the bursement of clinical social workers Yoshida; to the Committee on Vet- amendments to the States. covered through Medicare, Part B. The erans’ Affairs. Although the amendment on pay three proposed changes contained in Mr. INOUYE. Mr. President, today I raises languished for two centuries, in this legislation clarify the current pay- am introducing a private relief bill on the 1980s, a campaign began to ratify ment process for clinical social work- behalf of Jim K. Yoshida, to obtain rec- it. While I was a member of the Wis- ers and establish a reimbursement ognition of his service with the U.S. consin State Senate, I was proud to methodology for the profession that is military in Korea so that he may ob- help ratify the amendment. Its ap- similar to other health care profes- tain veteran’s status. proval by the Michigan Legislature on sionals reimbursed through the Medi- Mr. President, I ask unanimous con- May 7, 1992, gave it the needed approval care program. sent that the text of my bill be printed by three-fourths of the States. First, this legislation sets payment in the RECORD. The 27th amendment to the Constitu- for clinical social worker services ac- There being no objection, the bill was tion now states: ‘‘No law, varying the cording to a fee schedule established by ordered to be printed in the RECORD, as compensation for the services of the the Secretary. Second, it explicitly follows: senators and representatives, shall states that services and supplies fur- S. 62 take effect, until an election of rep- nished by a clinical social worker are a Be it enacted by the Senate and House of Rep- resentatives shall have intervened.’’ covered Medicare expense, just as these resentatives of the United States of America in I try to honor that limitation in my services are covered for other mental Congress assembled, own practices. In my own case, health professionals in Medicare. SECTION 1. VETERAN STATUS. throughout my 6–year term, I accept Third, the bill allows clinical social (a) ENTITLEMENT TO STATUS.—Notwith- only the rate of pay that Senators re- workers to be reimbursed for services standing any other provision of law, Jim K. ceive on the date on which I was sworn provided to a client who is hospital- Yoshida of Honolulu, Hawaii, is deemed to be in as a Senator. And I return to the ized. a veteran for the purposes of all laws admin- istered by the Secretary of Veterans Affairs. Treasury any additional income Sen- Clinical social workers are valued (b) TREATMENT OF SERVICE.—Notwith- ators get, whether from a cost-of-living members of our health care provider standing any other provision of law, the adjustment or a pay raise we vote for network. They are legally regulated in service of Jim K. Yoshida of Honolulu, Ha- ourselves. I don’t take a raise until my every state of the nation and are recog- waii, as a volunteer member of the United

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00136 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S243 States Army during the period beginning on SEC. 2. CONGRESSIONAL FINDINGS. the public about the resources of the herit- July 2, 1950, and ending on January 17, 1951, The Congress finds that— age area; and shall be deemed to be active military service (1) northern New Mexico encompasses a (E) include an analysis of ways in which from which Jim K. Yoshida was discharged mosaic of cultures and history, including local, State, Federal, and tribal programs under honorable conditions for the purposes eight Pueblos and the descendants of Span- may best be coordinated to promote the pur- of all laws administered by the Secretary of ish ancestors who settled in the area in 1598; poses of this Act. Veterans Affairs. (2) the combination of cultures, languages, (4) If the management entity fails to sub- (c) PROSPECTIVE APPLICABILITY.—No bene- folk arts, customs, and architecture make mit a management plan to the secretary as fits may be paid or otherwise provided to northern New Mexico unique; provided in paragraph (1), the heritage area Jim K. Yoshida of Honolulu, Hawaii, by rea- (3) the area includes spectacular natural, shall no longer be eligible to receive Federal son of the enactment of this Act with respect scenic, and recreational resources; funding under this Act until such time as a to any period before the date of the enact- (4) there is broad support from local gov- plan is submitted to the Secretary. ment of this Act. ernments and interested individuals to es- (5) The Secretary shall approve or dis- tablish a National Heritage Area to coordi- approve the management plan within 90 days By Mr. BINGAMAN (for himself nate and assist in the preservation and inter- after the date of submission. If the Secretary and Mr. DOMENICI): pretation of these resources; disapproves the management plan, the Sec- S. 63. A bill to establish the Northern (5) in 1991, the National Park Service study retary shall advise the management entity Rio Grande National Heritage Area in Alternative Concepts for Commemorating in writing of the reasons therefore and shall the State of New Mexico, and for other Spanish Colonization identified several al- make recommendations for revisions to the purposes; to the Committee on Energy ternatives consistent with the establishment plan. of a National Heritage Area, including con- (6) The management entity shall periodi- and Natural Resources. ducting a comprehensive archaeological and cally review the management plan and sub- Mr. BINGAMAN. Mr. President, I rise historical research program, coordinating a mit to the Secretary any recommendations today to reintroduce legislation to es- comprehensive interpretation program, and for proposed revisions to the management tablish the Northern Rio Grande Na- interpreting a cultural heritage scene; and plan. Any major revisions to the manage- tional Heritage Area in northern New (6) establishment of a National Heritage ment plan must be approved by the Sec- Mexico. I am pleased that Senator Area in northern New Mexico would assist retary. DOMENICI is again joining me in spon- local communities and residents in pre- (b) AUTHORITY.—The management entity soring this bill. The Northern Rio serving these unique cultural, historical and may make grants and provide technical as- Grande National Heritage Area will be natural resources. sistance to tribal and local governments, and other public and private entities to carry out established as part of a collaborative SEC. 3. DEFINITIONS. As used in this Act— the management plan. effort between local residents, Indian (1) the term ‘‘heritage area’’ means the (c) DUTIES.—The management entity tribes, businesses and local govern- Northern Rio Grande Heritage Area; and shall— ments, who are working together to (2) the term ‘‘Secretary’’ means the Sec- (1) give priority in implementing actions preserve the area. retary of the Interior. set forth in the management plan; By establishing the Northern Rio SEC. 4. NORTHERN RIO GRANDE NATIONAL HER- (2) coordinate with tribal and local govern- Grande National Heritage Area, I hope ITAGE AREA. ments to better enable them to adopt land to commemorate the significant but (a) ESTABLISHMENT.—There is hereby es- use policies consistent with the goals of the complex heritage of northern New Mex- tablished the Northern Rio Grande National management plan; (3) encourage by appropriate means eco- ico communities and Indian tribes, Heritage Area in the State of New Mexico. (b) BOUNDARIES.—The heritage area shall nomic viability in the heritage area con- from the pre-Spanish colonization pe- include the counties of Santa Fe, Rio Arriba, sistent with the goals of the management riod to present day. Establishing a Na- and Taos. plan; and tional Heritage Area will benefit the (c) MANAGEMENT ENTITY.— (4) assist local and tribal governments and northern New Mexico communities, (1) The Northern Rio Grande National Her- non-profit organizations in— local residents, students, and visitors, itage Area, Inc., a non-profit corporation (A) establishing and maintaining interpre- as well as help the local protection and chartered in the State of New Mexico, shall tive exhibits in the heritage area; interpretation of the unique cultural, serve as the management entity for the her- (B) developing recreational resources in the heritage area; historical, and natural resources of itage area. (2) The Board of Directors for the manage- (C) increasing public awareness of, and ap- northern New Mexico. ment entity shall include representatives of preciation for, the cultural, historical, ar- Last Congress, identical legislation the State of New Mexico, the counties of chaeological and natural resources and sits passed the Senate by unanimous con- Santa Fe, Rio Arriba and Taos, tribes and in the heritage area; sent and again as part of a comprehen- pueblos within the heritage area, the cities (D) the restoration of historic structures sive heritage area bill. The House of of Santa Fe, Espanola and Taos, and mem- related to the heritage area; and Representatives amended the bill to bers of the general public. The total number (E) carrying out other actions that the add authorizations for other heritage of Board members and the number of Direc- management entity determines appropriate areas but unfortunately the different tors representing State, local and tribal gov- to fulfill the purposes of this Act, consistent ernments and interested communities shall with the management plan. versions were not able to be reconciled be established to ensure that all parties have (d) PROHIBITION ON ACQUIRING REAL PROP- prior to the sine die adjournment of appropriate representation on the Board. ERTY.—The management entity may not use the Congress. However, I am encour- SEC. 5. AUTHORITY AND DUTIES OF THE MAN- Federal funds received under this Act to ac- aged that the Senate and House have AGEMENT ENTITY. quire real property or an interest in real each approved authorization for the (a) MANAGEMENT PLAN.— property. Northern Rio Grande National Herit- (1) Not later than 3 years after the date of (e) PUBLIC MEETINGS.—The management age Area, and it is my hope that since enactment of this Act, the management enti- entity shall hold public meetings at least an- both Houses have now passed legisla- ty shall develop and forward to the Sec- nually regarding the implementation of the management plan. tion that is essentially identical to the retary a management plan for the heritage area. (f) ANNUAL REPORTS AND AUDITS.— bill I am introducing today, it can be (2) The management entity shall develop (1) For any year in which the management swiftly considered and enacted into and implement the management plan in co- entity receives Federal funds under this Act, law. operation with affected communities, tribal the management entity shall submit an an- I ask unanimous consent that the and local governments and shall provide for nual report to the Secretary setting forth ac- text of the bill be printed in the public involvement in the development and complishments, expenses and income, and RECORD. implementation of the management plan. each entity to which any grant was made by There being no objection, the bill was (3) The management plan shall, at a min- the management entity. ordered to be printed in the RECORD, as imum— (2) The management entity shall make follows: (A) provide recommendations for the con- available to the Secretary for audit all servation, funding, management, and devel- records relating to the expenditure of Fed- S. 63 opment of the resources of the heritage area; eral funds and any matching funds. The man- Be it enacted by the Senate and House of Rep- (B) identify sources of funding; agement entity shall also require, for all resentatives of the United States of America in (C) include an inventory of the cultural, agreements authorizing expenditure of Fed- Congress assembled, historical, archaeological, natural, and rec- eral funds by other organizations, that the SECTION 1. SHORT TITLE. reational resources of the heritage area; receiving organization make available to the This Act may be cited as the ‘‘Northern (D) provide recommendations for edu- Secretary for audit all records concerning Rio Grande National Heritage Area Act’’. cational and interpretive programs to inform the expenditure of those funds.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00137 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S244 CONGRESSIONAL RECORD — SENATE January 24, 2005 SEC. 6. DUTIES OF THE SECRETARY. the commercial pilot retirement age to place. To retain my license and fly as a (a) TECHNICAL AND FINANCIAL ASSIST- the Social Security retirement age cur- pilot for Southwest Airlines, I must ANCE.—The Secretary may, upon request of rently 65. pass semi-annual flight physicals ad- the management entity, provide technical Most nations have abolished manda- ministered by a qualified (FAA li- and financial assistance to develop and im- plement the management plan. tory age 60 retirement rules. The censed) Aero-Medical Examiner (AME). (b) PRIORITY.—In providing assistance United States is one of only two coun- When a pilot turns 40 years of age, he under subsection (a), the Secretary shall give tries in the Joint Aviation Authority must undergo an EKG every other priority to actions that facilitate— that requires its commercial pilots to flight physical, which is electronically (1) the conservation of the significant nat- retire at the age of 60. Some countries, transmitted by the AME directly to ural, cultural, historical, archaeological, including Canada, Australia, and New FAA headquarters where a computer scenic, and recreational resources of the her- Zealand have no upper age limit at all. program alerts if parameters dictate. itage area; and The Age 60 Rule has no basis in ‘‘Pilots must also successfully pass (2) the provision of educational, interpre- semiannual simulator training and tive, and recreational opportunities con- science or safety and never did. FAA sistent with the resources and associated data shows that pilots over age 60 are flight checks designed to evaluate the values of the heritage area. as safe as, and in some cases safer crewmember’s ability to respond to SEC. 7. SAVINGS PROVISIONS. than, their younger colleagues. There various aircraft emergencies and/or (a) NO EFFECT ON PRIVATE PROPERTY.— have been numerous studies and state- competently handle advances in flight Nothing in this Act shall be construed— ments in support of abolishing the Age technology and the Air Traffic Control (1) to modify, enlarge, or diminish any au- 60 Rule. (ATC) environment. Captains must thority of Federal, State, or local govern- In 1981, the National Institute of demonstrate, twice yearly, complete ments to regulate any use of privately owned Aging stated that ‘‘the Age 60 Rule ap- knowledge of systems and procedures, lands; or pears indefensible on medical grounds’’ safe piloting skills and multi-tasking (2) to grant the management entity any by managing emergency and normal authority to regulate the use of privately and ‘‘there is no convincing medical owned lands. evidence to support age 60, or any flight situations, typically in instru- (b) TRIBAL LANDS.—Nothing in this Act other specific age, for mandatory pilot ment flight conditions conducted in ad- shall restrict or limit a tribe from protecting retirement.’’ vanced simulators. There is no greater cultural or religious sites on tribal lands. The FAA released the Hilton Study test of cognitive ability and mental (c) AUTHORITY OF GOVERNMENTS.—Nothing in 1993, which stated ‘‘the data for all dexterity than these simulator rides. in this Act shall— groups of pilots were remarkably con- Flight crews are also administered ran- (1) modify, enlarge, or diminish any au- sistent in showing a modest decrease in dom inflight check rides by FAA in- thority of Federal, State, tribal, or local spectors and Southwest check airmen. governments to manage or regulate any use accident rate with age no hint of an in- of land as provided for by law or regulation; crease in accident rates as pilots near Further, we are subject to random al- or age 60.’’ cohol and drug testing at any time (2) authorize the management entity to as- Furthermore, in May 1999, the Senate while on duty. There is no other profes- sume any management authorities over such Appropriations Committee asked the sion examined to this level. The 59 year lands. FAA to report on why the US should old Captain arrives at this point in his (d) TRUST RESPONSIBILITIES.—Nothing in not cautiously increase the age to 63, career having demonstrated successful this Act shall diminish the Federal Govern- ‘‘like other countries have for commer- performance following years of this ment’s trust responsibilities or government- kind of scrutiny. FAA studies have to-government obligations to any federally cial aviation.’’ recognized Indian tribe. Airline Pilots magazine stated in a verified the superior level of safety ex- SEC. 8. SUNSET. September 2003 article, ‘‘If a permanent hibited by this senior Captain. The authority of the Secretary to provide replacement for the 30 year Treasury ‘‘At Southwest, our pilots are trained assistance under this Act terminates on the bond rate is also applied to the calcula- to fly the aircraft on instruments down date that is 15 years after the date of enact- tion of lump-sum payments, we rec- to 50′ above the ground in poor visi- ment of this Act. ommend a long transition period, simi- bility conditions before acquiring the SEC. 9. AUTHORIZATION OF APPROPRIATIONS. lar to that proposed in H.R. 1776, the intended runway and landing visually. (a) IN GENERAL.—There are authorized to pension legislation introduced by Rep. In simulators, both pilots must dem- be appropriated to carry out this Act BOB PORTMAN. For pilots who must re- onstrate the ability to immediately de- $10,000,000, of which not more than $1,000,000 tire at age 60, this is particularly im- termine whether a safe landing can be may be authorized to be appropriated for any portant. It would be unfair to pull the made at this point and then either exe- fiscal year. rug out from under employees who cute a ‘‘go-around’’ or land. The First (b) COST-SHARING REQUIREMENT.—The Fed- eral share of the total cost of any activity have carefully planned their retire- Officer is trained to assume control of assisted under this Act shall be not more ment finances, especially pilots who the aircraft and execute a ‘‘go-around’’ than 50 percent. can’t fly longer to make up for the if the Captain fails to respond to proce- amounts lost because of a change in dures at this critical decision point. If By Mr. INOUYE (for himself, Mr. the basis used to calculate lump-sum either pilot should become incapaci- STEVENS, and Mr. BURNS): payments.’’ tated, even at touchdown, the other S. 65. A bill to amend the age restric- As recently as September 14, 2004, in pilot is capable of assuming control in tions for pilots; to the Committee on a hearing before the Senate Special order to fly the airplane to a safe land- Commerce, Science, and Transpor- Committee on Aging, Captain Joseph ing. The passengers would probably re- tation. ‘‘Ike’’ Eichelkraut, President of South- main unaware that a pilot had become Mr. INHOFE. Mr. President, I rise west Airlines Pilots’ Association, testi- ill until the aircraft is met at the gate today, as an experienced pilot over age fied: by Emergency Medical Technicians 60, along with my colleagues, Senator ‘‘The 4400 plus pilots of the South- (EMT). STEVENS and Senator BURNS, to intro- west Airlines Pilots’ Association, op- ‘‘Simulator failure rates among SWA duce a bill that will help end age dis- pose the Age 60 Rule. pilots are low. Last year there were crimination among airline pilots. I also ‘‘Flying a commercial airliner is not only 31 out of 4,200 simulator want to thank my colleague in the the physically demanding environment checkrides. But as pilots approach age other chamber, Congressman JIM GIB- I encountered 15 years ago in the 7 9 60 the failure numbers are at their low- BONS, for his leadership on this issue ‘‘G’’ world of the F–16 I flew in the Air est. The graph attached shows this and and for introducing the companion Force. Commercial piloting is, how- I believe that experience is the key. As version of this bill. ever, a job requiring key management pilots get older, they know how to bet- This bill will abolish the Federal skills and sound judgment. These are ter handle the extreme situations they Aviation Administration’s Age 60 Rule- talents that I have found typically may have encountered in simulator the regulation that for more than 40 come with age and experience. checks. The mean failure rate declines years has forced the retirement of air- ‘‘The facts are that plain. The FAA at an even rate from a pilot’s thirties line pilots the day they turn 60 and re- has the ideal mechanisms for ensuring through his fifties. Of course, because place it with a rational plan that ties safe pilots at any age are already in of the Age 60 rule, I don’t have data to

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00138 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S245 show that this trend would continue including significantly fewer emer- (d) EFFECTIVE DATE.—The amendments throughout a pilot’s sixties, but I sus- gency room visits, fewer hospital inpa- made by this section shall be effective with pect it would.’’ tient days, and less use of specialists, respect to payments made under a State plan I urge the Commerce Committee to as compared to conventional primary under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) for calendar quarters hold hearings along these lines. health care. commencing with the first calendar quarter Furthermore, on September 29, 2004, This bill reinforces the principle of beginning after the date of enactment of this thousands of people watched as 63-year- combining health care delivery in un- Act. old Michael Melvill made history by derserved areas with the education of becoming the first civilian to pilot a advanced practice nurses. To accom- By Mr. INOUYE: craft into space. In doing so, he helped plish these objectives, Title XIX of the S. 67. A bill to amend the Public Paul Allen, the owner of Mojave Aero- Social Security Act would be amended Health Act to provide health care prac- space Ventures, which owns to designate that the services provided titioners in rural areas with training in SpaceShipOne technology, along with in these nursing school clinics are re- preventive health care, including both the designer of SpaceShipOne, Burt imbursable under Medicaid. The com- physical and mental care, and for other Rutan, win the coveted $10 million bination of grants and the provision of purposes; to the Committee on Health, Ansari X-Prize. Medicaid reimbursement furnishes the Education, Labor, and Pensions. Melvill took SpaceShipOne above the financial incentives for clinic operators Mr. INOUYE. Mr. President, I rise 62-mile altitude point, ultimately soar- to establish the clinics. today to introduce the Rural Preven- ing to 337,500 feet. Despite rolling near- In order to meet the increasing chal- tive Health Care Training Act, a bill ly 30 times, Melvill was able to gain lenges of bringing cost-effective and that responds to the dire need of our control of the vehicle, re-enter the at- quality health care to all Americans, rural communities for quality health mosphere, and glide to a landing. I at- we must consider a wide range of pro- care and disease prevention programs. tribute this recovery and subsequent posals, both large and small. Most im- Almost one fourth of Americans live in landing to Melvill’s years of extensive portantly, we must approach the issue rural areas and frequently lack access experience as a test pilot. of health care with creativity and de- to adequate physical and mental health This bill will allow our most experi- termination, ensuring that all reason- care. As many as 21 million of the 34 enced pilots, those like Michael Melvill able avenues are pursued. Nurses have million people living in underserved demonstrably healthy, and fit for duty- always been an integral part of health rural areas are without access to a pri- to retain their jobs, a step that will care delivery. The Nursing School Clin- mary care provider. Even in areas benefit pilots, the financially burdened ics Act recognizes the central role where providers do exist, there are nu- airlines, and most importantly, pas- nurses can perform as care givers to merous limits to access, such as geog- sengers. Now, more than ever before, the medically underserved. raphy, distance, lack of transportation, we need to keep our best pilots flying. I ask unanimous consent that the and lack of knowledge about available Again, there is no scientific justifica- text of this bill be printed in the resources. Due to the diversity of rural tion for requiring pilots to retire at age RECORD. populations, language and cultural ob- 60. Our pilots, our airlines, and our pas- There being no objection, the bill was stacles are often a factor in the access sengers deserve our consideration. I ordered to be printed in the RECORD, as to medical care. urge the rest of my colleagues to sup- follows: Compound these problems with lim- port this important legislation. S. 66 ited financial resources, and the result Be it enacted by the Senate and House of Rep- is that many Americans living in rural By Mr. INOUYE: resentatives of the United States of America in communities go without vital health S. 66. A bill to amend title XIX of the Congress assembled, care, especially preventive care. Chil- Social Security Act to provide for cov- SECTION 1. SHORT TITLE. dren fail to receive immunizations and erage of services provided by nursing This Act may be cited as the ‘‘Nursing routine checkups. Preventable illnesses School Clinics Act of 2005’’. school clinics under medicaid pro- and injuries occur needlessly, and lead SEC. 2. MEDICAID COVERAGE OF SERVICES PRO- grams; to the Committee on Finance. VIDED BY NURSING SCHOOL CLIN- to expensive hospitalizations. Early Mr. INOUYE. Mr. President, today I ICS. symptoms of emotional problems and introduce the Nursing School Clinics (a) IN GENERAL.—Section 1905(a) of the So- substance abuse go undetected, and Act. This measure builds on our con- cial Security Act (42 U.S.C. 1396d(a)) is often develop into full-blown disorders. certed efforts to provide access to qual- amended— An Institute of Medicine IOM report ity health care for Americans by offer- (1) in paragraph (27), by striking ‘‘and’’ at entitled, ‘‘Reducing Risks for Mental ing grants and incentives for nursing the end; (2) by redesignating paragraph (28) as para- Disorders: Frontiers for Preventive schools to establish primary care clin- graph (29); and Intervention Research,’’ highlights the ics in underserved areas where addi- (3) by inserting after paragraph (27), the benefits of preventive care for all tional medical services are most need- following new paragraph: health problems. The training of health ed. In addition, this measure provides ‘‘(28) nursing school clinic services (as de- care providers in prevention is crucial the opportunity for nursing schools to fined in subsection (x)) furnished by or under in order to meet the demand for care in enhance the scope of student training the supervision of a nurse practitioner or a underserved areas. Currently, rural and education by providing firsthand clinical nurse specialist (as defined in sec- health care providers lack preventive clinical experience in primary care fa- tion 1861(aa)(5)), whether or not the nurse practitioner or clinical nurse specialist is care training opportunities. cilities. under the supervision of, or associated with, Interdisciplinary preventive training Primary care clinics administered by a physician or other health care provider; of rural health care providers must be nursing schools are university or non- and’’. encouraged. Through such training, profit primary care centers developed (b) NURSING SCHOOL CLINIC SERVICES DE- rural health care providers can build a mainly in collaboration with univer- FINED.—Section 1905 of the Social Security strong educational foundation from the sity schools of nursing and the commu- Act (42 U.S.C. 1396d) is amended by adding at behavioral, biological, and psycho- nities they serve. These centers are the end the following new subsection: ‘‘(y) The term ‘nursing school clinic serv- logical sciences. Interdisciplinary team staffed by faculty and staff who are ices’ means services provided by a health prevention training will also facilitate nurse practitioners and public health care facility operated by an accredited operations at sites with both health nurses. Students supplement patient school of nursing which provides primary and mental health clinics by facili- care while receiving preceptorships care, long-term care, mental health coun- tating routine consultation between provided by college of nursing faculty seling, home health counseling, home health groups. Emphasizing the mental health and primary care physicians, often as- care, or other health care services which are disciplines and their services as part of sociated with academic institutions, within the scope of practice of a registered the health care team will contribute to nurse.’’. who serve as collaborators with nurse (c) CONFORMING AMENDMENT.—Section the overall health of rural commu- practitioners. To date, the comprehen- 1902(a)(10)(C)(iv) of the Social Security Act nities. sive models of care provided by nursing (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by The Rural Preventive Health Care clinics have yielded excellent results, inserting ‘‘and (28)’’ after ‘‘(24)’’. Training Act would implement the

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00139 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S246 CONGRESSIONAL RECORD — SENATE January 24, 2005 risk-reduction model described in the would authorize a Federal Medicaid As- and indemnity compensation to Kath- IOM study. This model is based on the sistance Percent (FMAP) of 100 percent ryn E. Box, the now-deceased mother of identification of risk factors and tar- for the payment of health care costs of Donald C. Pence. It is rare that a fed- gets specific interventions for those Native Hawaiians who receive health eral agency admits a mistake. In this risk factors. The human suffering care from Federally Qualified Health case, the Department of Veterans Af- caused by poor health is immeasurable, Centers or the Native Hawaiian Health fairs has admitted that a mistake was and places a huge financial burden on Care System. made and explored ways to permit pay- communities, families, and individuals. This bill was originally a provision ment under the law, including equi- By implementing preventive measures within the Medicare Prescription Drug table relief, but has found no provision to reduce this suffering, the potential Bill, which the Senate passed by an authorizing the Department to release psychological and financial savings are overwhelming majority of 76 to 21, but the remaining benefits that were un- enormous. was dropped from the final Medicare paid to Mrs. Box at the time of her Mr. President. I ask unanimous con- Prescription Drug Conference Report. death. My bill would correct this injus- sent that the text of this bill be printed This bill is modeled on the Native tice, and I urge my colleagues to sup- in the RECORD. Alaskan Health Care Act, which pro- port this measure. There being no objection, the bill was vides for a Federal Medicaid Assistance Mr. President, I ask unanimous con- ordered to be printed in the RECORD, as Percent (FMAP) of 100 percent for pay- sent that the text of my bill be printed follows: ment of health care costs for Native in the RECORD. S. 67 Alaskans by the Indian Health Service, There being no objection, the bill was Be it enacted by the Senate and House of Rep- an Indian tribe, or a tribal organiza- ordered to be printed in the RECORD, as resentatives of the United States of America in tion. follows: Congress assembled, Community health centers serve as S. 69 SECTION 1. SHORT TITLE. the ‘‘safety net’’ for uninsured and Be it enacted by the Senate and House of Rep- This Act may be cited as the ‘‘Rural Pre- medically underserved Native Hawai- resentatives of the United States of America in ventive Health Care Training Act of 2005’’. ians and other United States citizens, Congress assembled, SEC. 2. PREVENTIVE HEALTH CARE TRAINING. providing comprehensive primary and Part D of title VII of the Public Health SECTION 1. RELIEF OF DONALD C. PENCE. Service Act (42 U.S.C. 294 et seq.) is amended preventive health services to the entire (a) RELIEF.—The Secretary of the Treasury by inserting after section 754 the following: community. Outpatient services of- shall pay, out of any moneys in the Treasury fered to the entire family include com- not otherwise appropriated, to Donald C. ‘‘SEC. 754A. PREVENTIVE HEALTH CARE TRAIN- Pence, of Sanford, North Carolina, the sum ING. prehensive primary care, preventive of $31,128 in compensation for the failure of ‘‘(a) IN GENERAL.—The Secretary may health maintenance, and education make grants to, and enter into contracts the Department of Veterans Affairs to pay outreach in the local community. Com- dependency and indemnity compensation to with, eligible applicants to enable such ap- munity health centers, with their mul- plicants to provide preventive health care Kathryn E. Box, the now-deceased mother of training, in accordance with subsection (c), tidisciplinary approach, offer cost ef- Donald C. Pence, for the period beginning on to health care practitioners practicing in fective integration of health promotion July 1, 1990, and ending on March 31, 1993. (b) LIMITATION ON FEES.—Not more than a rural areas. Such training shall, to the ex- and wellness with chronic disease man- total of 10 percent of the payment authorized tent practicable, include training in health agement and primary care focused on by subsection (a) shall be paid to or received care to prevent both physical and mental serving vulnerable populations. by agents or attorneys for services rendered disorders before the initial occurrence of Mr. President, I ask unanimous con- in connection with obtaining such payment, such disorders. In carrying out this sub- sent that the text of this bill be printed any contract to the contrary notwith- section, the Secretary shall encourage, but in the RECORD. standing. Any person who violates this sub- may not require, the use of interdisciplinary There being no objection, the bill was section shall be fined not more than $1,000. training project applications. ordered to be printed in the RECORD, as ‘‘(b) LIMITATION.—To be eligible to receive training using assistance provided under sub- follows: By Mr. INOUYE: section (a), a health care practitioner shall S. 68 S. 70. A bill to amend title XVIII of be determined by the eligible applicant in- Be it enacted by the Senate and House of Rep- the Social Security Act to remove the volved to be practicing, or desiring to prac- resentatives of the United States of America in restriction that a clinical psychologist tice, in a rural area. Congress assembled, or a clinical social worker provide ‘‘(c) USE OF ASSISTANCE.—Amounts re- SECTION 1. SHORT TITLE. services in a comprehensive outpatient ceived under a grant made or contract en- This Act may be cited as the ‘‘Native Ha- rehabilitation facility to a patient only tered into under this section shall be used— waiian Medicaid Coverage Act of 2005’’. ‘‘(1) to provide student stipends to individ- under the care of a physician; to the uals attending rural community colleges or SEC. 2. 100 PERCENT FMAP FOR MEDICAL ASSIST- Committee on Armed Services. ANCE PROVIDED TO A NATIVE HA- Mr. INOUYE. Mr. President, today I other institutions that service predomi- WAIIAN THROUGH A FEDERALLY- nantly rural communities, for the purpose of QUALIFIED HEALTH CENTER OR A introduce legislation to authorize the enabling the individuals to receive preven- NATIVE HAWAIIAN HEALTH CARE autonomous functioning of clinical tive health care training; SYSTEM UNDER THE MEDICAID PRO- psychologists and clinical social work- ‘‘(2) to increase staff support at rural com- GRAM. ers within the Medicare comprehensive munity colleges or other institutions that (a) MEDICAID.—The third sentence of sec- service predominantly rural communities to tion 1905(b) of the Social Security Act (42 outpatient rehabilitation facility pro- facilitate the provision of preventive health U.S.C. 1396d(b)) is amended by inserting ‘‘, gram. care training; and with respect to medical assistance pro- In my judgment, it is unfortunate ‘‘(3) to provide training in appropriate re- vided to a Native Hawaiian (as defined in that Medicare requires clinical super- search and program evaluation skills in section 12 of the Native Hawaiian Health vision of the services provided by cer- rural communities; Care Improvement Act) through a federally- tain health professionals and does not ‘‘(4) to create and implement innovative qualified health center or a Native Hawaiian programs and curricula with a specific pre- allow them to function to the full ex- health care system (as so defined) whether tent of their State practice licenses. vention component; and directly, by referral, or under contract or ‘‘(5) for other purposes as the Secretary de- other arrangement between a federally- Those who need the services of out- termines to be appropriate. qualified health center or a Native Hawaiian patient rehabilitation facilities should ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— health care system and another health care have access to a wide range of social There are authorized to be appropriated to provider’’ before the period. and behavioral science expertise. Clin- carry out this section, $5,000,000 for each of (b) EFFECTIVE DATE.—The amendment fiscal years 2006 through 2009.’’. ical psychologists and clinical social made by this section applies to medical as- workers are recognized as independent sistance provided on or after the date of en- providers of mental health care serv- By Mr. INOUYE: actment of this Act. S. 68. A bill to amend title XIX of the ices under the Federal Employee Social Security Act to provide 100 per- By Mr. INOUYE: Health Benefits Program, the cent reimbursement for medical assist- S. 69. A bill for the relief of Donald C. TRICARE Military Health Program of ance provided to a Native Hawaiian Pence; to the Committee on Armed the Uniformed Services, the Medicare through a federally-qualified health Services. (Part B) Program, and numerous pri- center or a Native Hawaiian health Mr. INOUYE. Mr. President, today I vate insurance plans. This legislation care system; to the Committee on Fi- am reintroducing a private relief mill will ensure that these qualified profes- nance. on behalf of Donald C. Pence of Stan- sionals achieve the same recognition Mr. INOUYE. Mr. President, today I ford, North Carolina, for compensation under the Medicare comprehensive out- introduce the Native Hawaiian Med- for the failure of the Department of patient rehabilitation facility pro- icaid Coverage Act. This legislation Veterans Affairs to pay dependency gram.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00140 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S247 Mr. President, I ask unanimous con- While nursing research indicates that (1) in subparagraph (R), by striking ‘‘and’’ sent that the text of this bill be printed adequate registered nurse staffing is after the comma at the end; in the RECORD. vital to the health and safety of pa- (2) in subparagraph (S), by striking the pe- There being no objection, the bill was tients, there is no standardized public riod at the end and inserting ‘‘, and’’; and (3) by inserting after subparagraph (S) the ordered to be printed in the RECORD, as reporting mechanism, nor enforcement following new subparagraph: follows: of adequate staffing plans. The only ‘‘(T) in the case of a hospital, to meet the S. 70 regulations addressing nursing staff ex- requirements of section 1889.’’. Be it enacted by the Senate and House of Rep- ists vaguely in Medicare Conditions of (b) REQUIREMENTS.—Part D of title XVIII resentatives of the United States of America in Participation which states: ‘‘The nurs- of the Social Security Act is amended by in- Congress assembled, ing service must have an adequate serting after section 1888 the following new SECTION 1. SHORT TITLE. number of licensed registered nurses, section: This Act may be cited as the ‘‘Autonomy licensed practice (vocational) nurse, STAFFING REQUIREMENTS FOR MEDICARE for Psychologists and Social Workers Act of ‘‘ PARTICIPATING HOSPITALS 2005’’. and other personnel to provide nursing SEC. 2. REMOVAL OF RESTRICTION THAT A CLIN- care to all patients as needed’’. ‘‘SEC. 1889. (a) ESTABLISHMENT OF STAFFING ICAL PSYCHOLOGIST OR CLINICAL This bill will require Medicare Par- SYSTEM.— SOCIAL WORKER PROVIDE SERV- ticipating Hospitals to develop and ‘‘(1) IN GENERAL.—Each participating hos- ICES IN A COMPREHENSIVE OUT- maintain reliable and valid systems to pital shall adopt and implement a staffing PATIENT REHABILITATION FACILITY system that ensures a number of registered TO A PATIENT ONLY UNDER THE determine sufficient registered nurse CARE OF A PHYSICIAN. staffing. Given the demands that the nurses on each shift and in each unit of the hospital to ensure appropriate staffing levels (a) IN GENERAL.—Section 1861(cc)(2)(E) of healthcare industry faces today, it is the Social Security Act (42 U.S.C. our responsibility to ensure that pa- for patient care. 1395x(cc)(2)(E)) is amended by striking ‘‘phy- ‘‘(2) STAFFING SYSTEM REQUIREMENTS.— tients have access to adequate nursing Subject to paragraph (3), a staffing system sician’’ and inserting ‘‘physician, except that care. However, we must ensure that the a patient receiving qualified psychologist adopted and implemented under this section services (as defined in subsection (ii)) may be decisions by which care is provided are shall— under the care of a clinical psychologist with made by the clinical experts, the reg- ‘‘(A) be based upon input from the direct respect to such services to the extent per- istered nurses caring for these pa- care-giving registered nurse staff or their ex- mitted under State law and except that a pa- tients. Support of this bill supports our clusive representatives, as well as the chief tient receiving clinical social worker serv- nation’s nurses during a critical short- nurse executive; ices (as defined in subsection (hh)(2)) may be age, but more importantly, works to ‘‘(B) be based upon the number of patients under the care of a clinical social worker and the level and variability of intensity of ensure the safety of their patients. care to be provided, with appropriate consid- with respect to such services to the extent Mr. President, I ask unanimous con- permitted under State law’’. eration given to admissions, discharges, and (b) EFFECTIVE DATE.—The amendment sent that the text of this bill be printed transfers during each shift; made by subsection (a) shall apply to serv- in the RECORD. ‘‘(C) account for contextual issues affect- ices provided on or after January 1, 2006. There being no objection, the bill was ing staffing and the delivery of care, includ- ordered to be printed in the RECORD, as ing architecture and geography of the envi- By Mr. INOUYE: follows: ronment and available technology; S. 71. A bill to amend title XVIII of ‘‘(D) reflect the level of preparation and S. 71 experience of those providing care; the Social Security Act to provide for Be it enacted by the Senate and House of Rep- patient protection by limiting the ‘‘(E) account for staffing level effectiveness resentatives of the United States of America in or deficiencies in related health care classi- number of mandatory overtime hours a Congress assembled, fications, including but not limited to, cer- nurse may be required to work at cer- SECTION 1. SHORT TITLE. tified nurse assistants, licensed vocational tain medicare providers, and for other This Act may be cited as the ‘‘Registered nurses, licensed psychiatric technicians, purposes; to the Committee on Fi- Nurse Safe Staffing Act of 2005’’. nursing assistants, aides, and orderlies; nance. SEC. 2. FINDINGS. ‘‘(F) reflect staffing levels recommended Mr. INOUYE. Mr. President, today I Congress makes the following findings: by specialty nursing organizations; introduce the Registered Nurse Safe (1) There are hospitals throughout the ‘‘(G) establish upwardly adjustable reg- Staffing Act. I am introducing this bill United States that have inadequate staffing istered nurse-to-patient ratios based upon on behalf of the American Nurses Asso- of registered nurses to protect the well-being registered nurses’ assessment of patient acu- ity and existing conditions; ciation’s Chief Executive Officer and and health of the patients. (2) Studies show that the health of patients ‘‘(H) provide that a registered nurse shall President Linda Stierle, MSN, RN, in hospitals is directly proportionate to the not be assigned to work in a particular unit CNAA and Barbara A. Blakeney, MS, number of registered nurses working in the without first having established the ability APRN, BC, ANP, respectively. For over hospital. to provide professional care in such unit; and four decades I have been a committed (3) There is a critical shortage of registered ‘‘(I) be based on methods that assure valid- supporter of nurses and the delivery of nurses in the United States. ity and reliability. safe patient care. While enforceable (4) The effect of that shortage is revealed ‘‘(3) LIMITATION.—A staffing system adopt- regulations will help to ensure patient in unsafe staffing levels in hospitals. ed and implemented under paragraph (1) may not— safety, the complexity and variability (5) Patient safety is adversely affected by these unsafe staffing levels, creating a public ‘‘(A) set registered-nurse levels below those of today’s hospitals require that staff- health crisis. required by any Federal or State law or reg- ing patterns be determined at the hos- (6) Registered nurses are being required to ulation; or pital and unit level, with the profes- perform professional services under condi- ‘‘(B) utilize any minimum registered sional input of registered nurses. More tions that do not support quality health care nurse-to-patient ratio established pursuant than a decade of research demonstrates or a healthful work environment for reg- to paragraph (2)(G) as an upper limit on the that nurse staff levels and the skill mix istered nurses. staffing of the hospital to which such ratio of nursing staff directly affect the clin- (7) As a payer for inpatient and outpatient applies. ical outcomes of hospitalized patients. hospital services for individuals entitled to ‘‘(b) REPORTING, AND RELEASE TO PUBLIC, benefits under the medicare program estab- OF CERTAIN STAFFING INFORMATION.— Studies show that when there are more lished under title XVIII of the Social Secu- ‘‘(1) REQUIREMENTS FOR HOSPITALS.—Each registered nurses, there are lower mor- rity Act, the Federal Government has a com- participating hospital shall— tality rates, shorter lengths of stay, re- pelling interest in promoting the safety of ‘‘(A) post daily for each shift, in a clearly duced costs, and fewer complications. such individuals by requiring any hospital visible place, a document that specifies in a A study published in the Journal of participating in such program to establish uniform manner (as prescribed by the Sec- the American Medical Association minimum safe staffing levels for registered retary) the current number of licensed and found that the risks of patient mor- nurses. unlicensed nursing staff directly responsible tality rose by 7 percent for every addi- SEC. 3. ESTABLISHMENT OF MINIMUM STAFFING for patient care in each unit of the hospital, tional patient added to the average RATIOS BY MEDICARE PARTICI- identifying specifically the number of reg- PATING HOSPITALS. istered nurses; nurse’s workload. In the midst of a (a) REQUIREMENT OF MEDICARE PROVIDER ‘‘(B) upon request, make available to the nursing shortage and increasing finan- AGREEMENT.—Section 1866(a)(1) of the Social public— cial pressures, hospitals often find it Security Act (42 U.S.C. 1395cc(a)(1)) is ‘‘(i) the nursing staff information described difficult to maintain adequate staffing. amended— in subparagraph (A); and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00141 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S248 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(ii) a detailed written description of the more than $10,000 for each knowing violation ‘‘(ii) an adverse evaluation or decision staffing system established by the hospital of a requirement of this section, except that made in relation to accreditation, certifi- pursuant to subsection (a); and the Secretary shall impose a civil money cation, credentialing, or licensing of the in- ‘‘(C) submit to the Secretary in a uniform penalty of more than $10,000 for each such dividual; and manner (as prescribed by the Secretary) the violation in the case of a participating hos- ‘‘(iii) a personnel action that is adverse to nursing staff information described in sub- pital that the Secretary determines has a the individual concerned. paragraph (A) through electronic data sub- pattern or practice of such violations (with ‘‘(f) RELATIONSHIP TO STATE LAWS.—Noth- mission not less frequently than quarterly. the amount of such additional penalties ing in this section shall be construed as ex- ‘‘(2) SECRETARIAL RESPONSIBILITIES.—The being determined in accordance with a empting or relieving any person from any li- Secretary shall— schedule or methodology specified in regula- ability, duty, penalty, or punishment pro- ‘‘(A) make the information submitted pur- tions). vided by any present or future law of any suant to paragraph (1)(C) publicly available, ‘‘(B) PROCEDURES.—The provisions of sec- State or political subdivision of a State, including by publication of such information tion 1128A (other than subsections (a) and other than any such law which purports to on the Internet site of the Department of (b)) shall apply to a civil money penalty require or permit the doing of any act which Health and Human Services; and under this paragraph in the same manner as would be an unlawful practice under this ‘‘(B) provide for the auditing of such infor- such provisions apply to a penalty or pro- title. mation for accuracy as a part of the process ceeding under section 1128A. ‘‘(g) RELATIONSHIP TO CONDUCT PROHIBITED of determining whether an institution is a ‘‘(C) PUBLIC NOTICE OF VIOLATIONS.— UNDER THE NATIONAL LABOR RELATIONS ACT hospital for purposes of this title. ‘‘(i) INTERNET SITE.—The Secretary shall OR OTHER COLLECTIVE BARGAINING LAWS.— ‘‘(c) RECORDKEEPING; DATA COLLECTION; publish on the Internet site of the Depart- Nothing in this section shall be construed as EVALUATION.— ment of Health and Human Services the permitting conduct prohibited under the Na- ‘‘(1) RECORDKEEPING.—Each participating names of participating hospitals on which tional Labor Relations Act or under any hospital shall maintain for a period of at civil money penalties have been imposed least 3 years (or, if longer, until the conclu- other Federal, State, or local collective bar- under this section, the violation for which gaining law. sion of pending enforcement activities) such the penalty was imposed, and such addi- records as the Secretary deems necessary to ‘‘(h) REGULATIONS.—The Secretary shall tional information as the Secretary deter- promulgate such regulations as are appro- determine whether the hospital has adopted mines appropriate. and implemented a staffing system pursuant priate and necessary to implement this sec- ‘‘(ii) CHANGE OF OWNERSHIP.—With respect to subsection (a). tion. to a participating hospital that had a change ‘‘(2) DATA COLLECTION ON CERTAIN OUT- ‘‘(i) DEFINITIONS.—In this section: in ownership, as determined by the Sec- COMES.—The Secretary shall require the col- ‘‘(1) PARTICIPATING HOSPITAL.—The term retary, penalties imposed on the hospital lection, maintenance, and submission of data ‘participating hospital’ means a hospital while under previous ownership shall no by each participating hospital sufficient to that has entered into a provider agreement longer be published by the Secretary of such establish the link between the staffing sys- under section 1866. Internet site after the 1-year period begin- tem established pursuant to subsection (a) ‘‘(2) REGISTERED NURSE.—The term ‘reg- ning on the date of change in ownership. and— istered nurse’ means an individual who has ‘‘(A) patient acuity from maintenance of ‘‘(e) WHISTLEBLOWER PROTECTIONS.— been granted a license to practice as a reg- acuity data through entries on patients’ ‘‘(1) PROHIBITION OF DISCRIMINATION AND RE- istered nurse in at least 1 State. charts; TALIATION.—A participating hospital shall ‘‘(3) UNIT.—The term ‘unit’ of a hospital is ‘‘(B) patient outcomes that are nursing not discriminate or retaliate in any manner an organizational department or separate ge- sensitive, such as patient falls, adverse drug against any patient or employee of the hos- ographic area of a hospital, such as a burn events, injuries to patients, skin breakdown, pital because that patient or employee, or unit, a labor and delivery room, a post-anes- pneumonia, infection rates, upper gastro- any other person, has presented a grievance thesia service area, an emergency depart- intestinal bleeding, shock, cardiac arrest, or complaint, or has initiated or cooperated ment, an operating room, a pediatric unit, a length of stay, and patient readmissions; in any investigation or proceeding of any stepdown or intermediate care unit, a spe- ‘‘(C) operational outcomes, such as work- kind, relating to the staffing system or other cialty care unit, a telemetry unit, a general related injury or illness, vacancy and turn- requirements and prohibitions of this sec- medical care unit, a subacute care unit, and over rates, nursing care hours per patient tion. a transitional inpatient care unit. day, on-call use, overtime rates, and needle- ‘‘(2) RELIEF FOR PREVAILING EMPLOYEES.— ‘‘(4) SHIFT.—The term ‘shift’ means a stick injuries; and An employee of a participating hospital who scheduled set of hours or duty period to be ‘‘(D) patient complaints related to staffing has been discriminated or retaliated against worked at a participating hospital. levels. in employment in violation of this sub- ‘‘(5) PERSON.—The term ‘person’ means 1 or ‘‘(3) EVALUATION.—Each participating hos- section may initiate judicial action in a more individuals, associations, corporations, pital shall annually evaluate its staffing sys- United States district court and shall be en- unincorporated organizations, or labor tem and establish minimum registered nurse titled to reinstatement, reimbursement for unions.’’. lost wages, and work benefits caused by the staffing ratios to assure ongoing reliability (c) EFFECTIVE DATE.—The amendments and validity of the system and ratios. The unlawful acts of the employing hospital. Pre- made by this section shall take effect on evaluation shall be conducted by a joint vailing employees are entitled to reasonable January 1, 2006. management-staff committee comprised of attorney’s fees and costs associated with pursuing the case. at least 50 percent of registered nurses who By Mr. INOUYE: provide direct patient care. ‘‘(3) RELIEF FOR PREVAILING PATIENTS.—A ‘‘(d) ENFORCEMENT.— patient who has been discriminated or retali- S. 72. A bill to amend title 5, United ‘‘(1) RESPONSIBILITY.—The Secretary shall ated against in violation of this subsection States Code, to require the issuance of enforce the requirements and prohibitions of may initiate judicial action in a United a prisoner-of-war medal to civilian em- this section in accordance with the suc- States district court. A prevailing patient ployees of the Federal Government who ceeding provisions of this subsection. shall be entitled to liquidated damages of are forcibly detained or interned by an ‘‘(2) PROCEDURES FOR RECEIVING AND INVES- $5,000 for a violation of this statute in addi- enemy government or a hostile force TIGATING COMPLAINTS.—The Secretary shall tion to any other damages under other appli- under wartime conditions; to the Com- establish procedures under which— cable statutes, regulations, or common law. ‘‘(A) any person may file a complaint that Prevailing patients are entitled to reason- mittee on Homeland Security and Gov- a participating hospital has violated a re- able attorney’s fees and costs associated ernmental Affairs. quirement or a prohibition of this section; with pursuing the case. Mr. INOUYE. Mr. President, all too and ‘‘(4) LIMITATION ON ACTIONS.—No action often we find that our Nation’s civilian ‘‘(B) such complaints are investigated by may be brought under paragraph (2) or (3) employees of the Federal Government the Secretary. more than 2 years after the discrimination who have been forcibly detained or in- ‘‘(3) REMEDIES.—If the Secretary deter- or retaliation with respect to which the ac- terned by a hostile government do not mines that a participating hospital has vio- tion is brought. lated a requirement of this section, the Sec- ‘‘(5) TREATMENT OF ADVERSE EMPLOYMENT receive the recognition they deserve. retary— ACTIONS.—For purposes of this subsection— My bill would correct this inequity and ‘‘(A) shall require the facility to establish ‘‘(A) an adverse employment action shall provide a prisoner of war medal for a corrective action plan to prevent the recur- be treated as retaliation or discrimination; such citizens. rence of such violation; and and Mr. President, I ask unanimous con- ‘‘(B) may impose civil money penalties ‘‘(B) the term ‘adverse employment action’ sent that the text of my bill be printed under paragraph (4). includes— in the RECORD. ‘‘(4) CIVIL MONEY PENALTIES.— ‘‘(i) the failure to promote an individual or ‘‘(A) IN GENERAL.—In addition to any other provide any other employment-related ben- There being no objection, the bill was penalties prescribed by law, the Secretary efit for which the individual would otherwise ordered to be printed in the RECORD, as may impose a civil money penalty of not be eligible; follows:

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00142 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S249 S. 72 Feed Protection Act of 2005. It is simi- (i) an unprocessed agricultural commodity Be it enacted by the Senate and House of Rep- lar to legislation that I introduced in that is readily identifiable as nonanimal in resentatives of the United States of America in the 108th Congress. origin, such as a vegetable, grain, or nut; Congress assembled, Last week, during the Senate’s con- (ii) an article described in subparagraph (A) that, based on compelling scientific evi- SECTION 1. PRISONER-OF-WAR MEDAL FOR CI- sideration of the nomination of Gov- VILIAN EMPLOYEES OF THE FED- dence, the Secretary determines does not ERAL GOVERNMENT. ernor Mike Johanns to be the Sec- pose a risk of transmitting prion disease; or (a) AUTHORITY TO ISSUE PRISONER-OF-WAR retary of Agriculture, I spoke in favor (iii) an article regulated by the Secretary MEDAL.—(1) Subpart A of part III of title 5, of exercising caution with respect to that, as determined by the Secretary— United States Code, is amended by inserting re-opening the U.S.-Canadian border to (I) poses a minimal risk of carrying prion after chapter 23 the following new chapter: imports of live animals and processed disease; and ‘‘CHAPTER 25—MISCELLANEOUS AWARDS beef products until the Animal Protec- (II) is necessary to protect animal health or public health. ‘‘Sec. tive Health Inspection Service fully in- (3) SPECIFIED RISK MATERIAL.— ‘‘2501. Prisoner-of-war medal: issue. vestigates the most recent case of Mad (A) IN GENERAL.—The term ‘‘specified risk ‘‘§ 2501. Prisoner-of-war medal: issue Cow in that country. This legislation is material’’ means— ‘‘(a) The President shall issue a prisoner- important to our ongoing efforts to (i) the skull, brain, trigeminal ganglia, of-war medal to any person who, while serv- eradicate the possibility that Mad Cow eyes, tonsils, spinal cord, vertebral column, ing in any capacity as an officer or employee disease will infect U.S. cattle herds. or dorsal root ganglia of— of the Federal Government, was forcibly de- My legislation provides necessary en- (I) cattle and bison 30 months of age and tained or interned, not as a result of such older; or person’s own willful misconduct— hancements to current Federal feed regulations. It reduces the chance that (II) sheep, goats, deer, and elk 12 months of ‘‘(1) by an enemy government or its agents, age and older; or a hostile force, during a period of war; or the riskiest materials, those most like- (ii) the intestinal tract of a ruminant of ‘‘(2) by a foreign government or its agents, ly to transmit Mad Cow disease, cross- any age; and or a hostile force, during a period other than contaminate cattle feed or are acciden- (iii) any other material of a ruminant that a period of war in which such person was tally fed to cattle. may carry a prion disease, as determined by held under circumstances which the Presi- Specifically, my legislation would the Secretary, based on scientifically cred- dent finds to have been comparable to the ban the inclusion of specified risk ma- ible research. circumstances under which members of the terials, or SRM, in all animal feed. (B) MODIFICATION.—The Secretary shall armed forces have generally been forcibly de- conduct an annual review of scientific re- tained or interned by enemy governments Currently these materials are only banned from ruminant feed. search and may modify the definition of during periods of war. specified risk material based on scientif- ‘‘(b) The prisoner-of-war medal shall be of As we continue to negotiate the re- ically credible research (including the con- appropriate design, with ribbons and appur- opening of export markets to U.S. beef, duct of ante-mortem and post-mortem tests tenances. a comprehensive SRM ban is a prudent certified by the Secretary of Agriculture). ‘‘(c) Not more than one prisoner-of-war step. It is necessary to assure our trad- (4) SECRETARY.—The term ‘‘Secretary’’ medal may be issued to a person under this ing partners that we have secured our means the Secretary of Health and Human section or section 1128 of title 10. However, domestic feed, and eliminated the risk Services. for each succeeding service that would other- SEC. 3. PROTECTION OF ANIMAL FEED AND PUB- wise justify the issuance of such a medal, the of spreading Mad Cow disease through feed. LIC HEALTH. President (in the case of service referred to It shall be unlawful for any person to in- in subsection (a) of this section) or the Sec- As our domestic beef producers con- troduce into interstate or foreign commerce retary concerned (in the case of service re- tinue to suffer from the closure of our a covered article if the covered article con- ferred to in section 1128(a) of title 10) may largest export markets, I encourage my tains— issue a suitable device to be worn as deter- colleagues to join me by cosponsoring (1)(A) specified risk material from a rumi- mined by the President or the Secretary, as this legislation—a measure that will nant; or the case may be. strengthen our Mad Cow firewalls and (B) any material from a ruminant that— ‘‘(d) For a person to be eligible for issuance (i) was in any foreign country at a time at of a prisoner-of-war medal, the person’s con- our assurances to foreign beef con- sumers. I also hope that as the Senate which there was a risk of transmission of duct must have been honorable for the period BSE in the country, as determined by the of captivity which serves as the basis for the Agriculture Committee conducts hear- Secretary of Agriculture; and issuance. ings next month into the appropriate (ii) may contain specified risk material ‘‘(e) If a person dies before the issuance of Federal response to the most recent from a ruminant; or a prisoner-of-war medal to which the person Canadian Mad Cow case, the com- (2) any material from a ruminant exhib- is entitled, the medal may be issued to that mittee will consider examining this iting signs of a neurological disease. person’s representative, as designated by the SEC. 4. ENFORCEMENT. President. legislation as well. The Senate should (a) COOPERATION.—The Secretary and the ‘‘(f) Under regulations prescribed by the move toward its swift passage. Mr. President, I ask unanimous consent heads of other Federal agencies, as appro- President, a prisoner-of-war medal that is priate, shall cooperate with the Attorney lost, destroyed, or rendered unfit for use that a copy of the legislation be print- General in enforcing this Act. without fault or neglect on the part of the ed in the RECORD. (b) DUE PROCESS.—Any person subject to person to whom it was issued may be re- There being no objection, the bill was enforcement action under this section shall placed without charge. ordered to be printed in the RECORD, as have the opportunity for an informal hearing ‘‘(g) In this section, the term ‘period of follows: on the enforcement action as soon as prac- war’ has the meaning given such term in sec- ticable after, but not later than 10 days S. 73 tion 101(11) of title 38.’’. after, the enforcement action is taken. (2) The table of chapters at the beginning Be it enacted by the Senate and House of Rep- (c) REMEDIES.—In addition to any remedies of part III of such title is amended by insert- resentatives of the United States of America in available under other provisions of law, the ing after the item relating to chapter 23 the Congress assembled, head of a Federal agency may enforce this following new item: SECTION 1. SHORT TITLE. Act by— ‘‘25. Miscellaneous Awards ...... 2501’’. This Act may be cited as the ‘‘Animal Feed (1) seizing and destroying an article that is (b) APPLICABILITY.—Section 2501 of title 5, Protection Act of 2005’’. introduced into interstate or foreign com- United States Code, as added by subsection SEC. 2. DEFINITIONS. merce in violation of this Act; or (a), applies with respect to any person who, In this Act: (2) issuing an order requiring any person after April 5, 1917, is forcibly detained or in- (1) BSE.—The term ‘‘BSE’’ means bovine that introduces an article into interstate or terned as described in subsection (a) of such spongiform encephalopathy. foreign commerce in violation of this Act— section. (2) COVERED ARTICLE.— (A) to cease the violation; (A) IN GENERAL.—The term ‘‘covered arti- (B)(i) to recall any article that is sold; and By Ms. CANTWELL: cle’’ means— (ii) to refund the purchase price to the pur- S. 73. A bill to promote food safety (i) feed for an animal; chaser; and to protect the animal feed supply (ii) a nutritional supplement for an animal; (C) to destroy the article or forfeit the ar- (iii) medicine for an animal; and ticle to the United States for destruction; or from bovine spongiform (iv) any other article of a kind that is ordi- (D) to cease operations at the facility at encephalopathy; to the Committee on narily ingested, implanted, or otherwise which the article is produced until the head Agriculture, Nutrition, and Forestry. taken into an animal. of the appropriate Federal agency deter- Ms. CANTWELL. Mr. President, (B) EXCLUSIONS.—The term ‘‘covered arti- mines that the operations are no longer in today I am introducing the Animal cle’’ does not include— violation of this Act.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00143 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S250 CONGRESSIONAL RECORD — SENATE January 24, 2005 (d) CIVIL AND MONETARY PENALTIES.—Not omy. According to the Washington De- S. 75. A bill to permanently increase later than 180 days after the date of enact- partment of Fish and Wildlife, fish and the maximum annual contribution al- ment of this Act, the Secretary shall pro- wildlife related recreation pumps near- lowed to be made to Coverdell edu- mulgate regulations establishing the appro- ly $2.2 billion per year into our econ- cation savings accounts; to the Com- priate level of civil and monetary penalties necessary to carry out this Act. omy. And we rank first in the North- mittee on Finance. Ms. CANTWELL. Mr. President, SEC. 5. TRAINING STANDARDS. west and eighth in the nation in spend- The Secretary, in consultation with the ing by sport fishers. today I am introducing two pieces of Secretary of Agriculture, shall issue training Safeguarding the White Salmon legislation to help families save for standards to industry for the removal of through this designation will also be their children’s education. specified risk materials. an important step toward restoring In today’s global marketplace, ensur- SEC. 6. AUTHORIZATION OF APPROPRIATIONS. wildlife habitat. Once the Condit Dam ing access to high-quality education— There is authorized to be appropriated is removed from the lower reach of the starting in early childhood and grade $5,000,000 to carry out this Act. river, the White Salmon will again be- school, moving on to college and be- SEC. 7. EFFECTIVE DATE. come valuable spawning habitat for yond—is central in maintaining Amer- This Act takes effect on the date that is salmon and steelhead. ica’s competitive edge. To make paying 180 days after the date of enactment of this I am proud that identical legislation Act. for school easier, I am introducing two to the measure I introduce today pieces of legislation that would expand By Ms. CANTWELL (for herself passed the Senate unanimously on Oc- Coverdell Education Savings Accounts tober 10, 2004. While the bill narrowly and Mrs. MURRAY): or ESAs: The Education Savings for S. 74. A bill to designate a portion of missed clearing the House of Rep- Students Act and College Savings Act. the White Salmon River as a compo- resentatives, I am confident that be- Coverdell ESAs are trusts created nent of the National Wild and Scenic cause this bill has a broad range of sup- solely for the educational benefit of Rivers System; to the Committee on port, and is a true win-win proposal for any child under the age of 18. Contribu- Energy and Natural Resources. local interests, that it will become law tions to a Coverdell Education Savings Ms. CANTWELL. Mr. President, during the 109th Congress. account can be used toward a child’s today I am introducing the White Mr. President, I look forward to education from kindergarten through Salmon Wild and Scenic Rivers Act. I working with my colleagues in the 12th grade, college, and even graduate am pleased to be joined by the Senior Senate, as well as other members of school. All earnings in the account the Washington state congressional Senator from Washington (Mrs. MUR- grow tax-free and can be withdrawn on delegation, to ensure swift passage of RAY), who has been a strong supporter a tax-deferred basis, if used for edu- of this legislation. this important legislation. I ask unani- cational expenses. Currently, annual This bill would designate some 20 mous consent that a copy of the legis- contributions to each Coverdell ESA miles of the main stem of the upper lation be printed in the RECORD at the cannot exceed $2,000. But this par- White Salmon River Salmon and one of conclusion of my remarks. ticular provision will sunset on 12/31/ its tributaries, Cascade Creek, all with- There being no objection, the bill was 2010 unless Congress takes action to ex- in the Gifford Pinchot National Forest, ordered to be printed in the RECORD, as tend it, otherwise the maximum con- as components of the National Wild follows: tribution will drop back to a previously and Scenic Rivers System. By desig- S. 74 set stipulation of $500. nating this upper third of the White Be it enacted by the Senate and House of Rep- My bill, the Education for Students Salmon, we can permanently protect resentatives of the United States of America in Act would expand the existing Cover- Congress assembled, this special river as a premiere rec- dell ESA by permanently increasing SECTION 1. SHORT TITLE. reational destination, a Southwest This Act may be cited as the ‘‘Upper White the maximum annual contribution Washington economic resource, and an Salmon Wild and Scenic Rivers Act’’. from $2,000 to $5,000. This bill keeps the important wildlife habitat. SEC. 2. UPPER WHITE SALMON WILD AND SCENIC current Coverdell ESA provision that I am happy to note that my delega- RIVER. investment earnings accumulate tax- tion colleague, Congressman BAIRD, re- Section 3(a) of the Wild and Scenic Rivers free and withdrawals from the account cently offered identical legislation in Act (16 U.S.C. 1274(a)) is amended by adding are tax-exempt when the child uses the the House. at the end the following: funds for school. The White Salmon River’s remark- ‘‘ ( ) WHITE SALMON RIVER, WASHINGTON.— My other bill, the College Savings The 20 miles of river segments of the main able beauty and pristine condition are stem of the White Salmon River and Cascade Act would also permanently increase not in question. In fact, the lower eight Creek, Washington, to be administered by the maximum annual contribution to a miles of the river received protection the Secretary of Agriculture in the following Coverdell ESA to $5,000. Instead of an- when Congress granted that stretch of classifications: ticipating future earnings, families the river Wild and Scenic status in ‘‘(A) The approximately 1.6-mile segment would be able to deduct the amount 1986. As we saw then, its protected sta- of the main stem of the White Salmon River they contribute to their education sav- tus hasn’t prevented residents and visi- from the headwaters on Mount Adams in sec- ings account from income. tors from taking advantage of the tion 17, township 8 north, range 10 east, Rather than putting away money ad- downstream to the Mount Adams wilderness unique recreational opportunities the boundary as a wild river. hoc, both bills provide a financial in- White Salmon River offers. Extending ‘‘(B) The approximately 5.1-mile segment centive to save for college or other Wild and Scenic protection to the riv- of Cascade Creek from its headwaters on educational expenses. And since there er’s upper reaches today is an impor- Mount Adams in section 10, township 8 is no limit on the number of Coverdell tant step forward in protecting even north, range 10 east, downstream to the ESAs that may be opened for a child more of its wild character for fishing, Mount Adams Wilderness boundary as a wild under age 18, parents have the flexi- boating, and other recreational activi- river. bility to set aside money now through ties. ‘‘(C) The approximately 1.5-mile segment deductible contributions or bank on of Cascade Creek from the Mount Adams As one of the best whitewater rivers Wilderness boundary downstream to its con- projected savings through tax-deferred in the Pacific Northwest, the White fluence with the White Salmon River as a earnings and withdrawals, or even take Salmon already supports a number of scenic river. on both options. The College Savings whitewater rafting companies. About ‘‘(D) The approximately 11.8-mile segment and Education Savings for Students 12,000 whitewater boaters visit the of the main stem of the White Salmon River Acts will help families plan for future river each year. So I see this designa- from the Mount Adams Wilderness boundary educational expenses, paving a path to tion as not just protecting a pristine downstream to the Gifford Pinchot National financial self-sufficiency. river, but also its beneficial impact on Forest boundary as a scenic river.’’. I understand that all families are dif- the local economy downstream. SEC. 3. AUTHORIZATION OF APPROPRIATIONS. ferent. Saving for college may be the There are authorized to be appropriated Protecting the White Salmon River such sums as are necessary to carry out this last thing on a parent’s mind, espe- will help increase opportunities for Act. cially when their child is young and other outdoor sports, as well. This is an their family has significant financial important sector of our state’s econ- By Ms. CANTWELL: needs. But just as fast as our children

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00144 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S251 grow, so does the cost of tuition. may cause students to spend more time manent ensures greater savings for Mounting prices for books and mate- working than attending class or to opt families. By increasing the amount rials, plus room and board have made out of enrolling in college altogether. parents can put aside for their chil- colleges and universities less affordable Moreover, the steepest increases in dren’s college savings, middle-income for most families. college and university tuition have parents will be able to save more easily College is expensive. There are many been imposed during times of greatest for their child’s college education. parents whose children aim to go to economic hardship. Just in the past Say, for example, parents start sav- college, but soon discover they can’t three years, our economy has experi- ing when their child turns eight years afford it because the price of pursuing enced a loss of 1.8 million private sec- old. If they put away just $100.00 a a higher education costs too much. If tor jobs and 2.7 million manufacturing month—at an interest rate of savings the College Savings and Education for jobs. Preparing America’s workforce of four percent—by the time their kid Students Acts became law, families and keeping up with the demand for turns 18, their account would have would have another powerful tool to skilled workers across all sectors of the earned more than $12,400 in interest. help their children realize their edu- 21st century economy is my priority. If Parents will save over $3,100 in taxes cational dreams. we want to maintain our economic when that child is old enough to go to By saving money early and often, competitiveness, it is imperative that school. families won’t feel as hard hit by sky- there are opportunities for individuals In addition to projected savings, par- rocketing college prices because you’ll to fully take advantage of educational ents also have the option to save now. know what’s coming in and what’s opportunities. The College Savings Act would allow going out of these accounts. The Bureau of Labor Statistics re- families to deduct Coverdell ESA con- In 2002, the National Center for Pub- ports that six of the ten fastest-grow- tributions from their taxes each year. lic Policy and Higher Education re- ing occupations in the U.S. economy Mr. President, both of these bills, the ported on the national trends of rising require an associate’s degree or bach- College Savings Act and the Education college prices. The Center determined elor’s degree, and that all ten of these Savings for Students Act are financial that if educational costs are careers will require some type of skills incentives for people to save by allow- unaddressed there will be adverse con- training. By 2010, 40 percent of all job ing families to deduct the amount they sequences for expanding students’ op- growth will require some form of post- contribute and take tax-free earnings portunities to pursue a higher edu- secondary education. when their child is ready to go to cation and future career. On average, a college graduate earns school. These bills would further lessen This report found that over the last nearly 73 percent more than a typical the financial burden that parents bear two decades, the cost of attending two- high school graduate. In 2003, the aver- by saving money early and often. and four-year public and private col- age worker in the U.S. with a four-year Permanently expanding the Cover- leges have not only grown more rapidly college degree earned just under dell maximum contribution from its than inflation, but faster than family $50,000, over 60 percent more than the current threshold of $2,000 to $5,000 a incomes, increasing the share of family $30,800 earned by the average worker year and allowing this contribution to income that is needed to pay for tui- with a high school diploma, reports the be tax deductible is a common-sense tion and other college expenses. From College Board. Those with advanced de- savings vehicle that keeps future col- 1991 through 2001, tuition at four-year grees earn two to three times as much lege costs from spinning out of control. public colleges and universities rose as high school graduates. In addition, Increasing contribution caps will make faster than family income in 41 states, society reaps the benefits of an edu- school more affordable at a time when including my home state of Wash- cated workforce by improving quality a college education and advanced job ington. of life and overall, the well-being of our training is becoming more and more The Washington State Higher Edu- communities. important for economic success. cation Coordinating Board reports Affordability is key to expanding op- I urge my colleagues to support these that, over the last ten years, tuition portunities to go to college. Saving for measures and I ask unanimous consent and fees have far outpaced family in- college early and often will help lift that the full text of these bills be come, increasing 89 percent compared the pressures off of parents who are printed in the RECORD. to 51 percent in per capita personal in- feeling the financial squeeze of in- There being no objection, the bills come in my state. In comparison, the creased tuition and fees. was ordered to be printed in the cost of most consumer goods increased Because my family qualified for fi- RECORD, as follows: an average of 20 percent during the nancial aid, I was able to work my way same time. Per capita personal income through college using Pell grant fund- S. 75 in Washington increased 51 percent ing. But there are many families who Be it enacted by the Senate and House of Rep- during this same period. do not qualify for Pell or other sources resentatives of the United States of America in Congress assembled, As a result, more students and fami- of financial aid. lies at all income levels are borrowing For these families, Coverdell Edu- SECTION 1. SHORT TITLE. more money than ever before to pay for cation Savings plans provide necessary This Act may be cited as the ‘‘The Edu- cation Savings for Students Act of 2005’’. college. According to a recent study by relief for the middle class. The purpose the College Board, nonfederal bor- SEC. 2. INCREASE IN MAXIMUM ANNUAL CON- of education savings plans are to in- TRIBUTION FOR COVERDELL EDU- rowing reached $11.3 billion in 2003–04, crease saving by increasing net re- CATION SAVINGS ACCOUNTS. up 39 percent over the previous year, turns. Today, parents can put up to (a) IN GENERAL.—Section 530(b)(1)(A)(iii) of and jumping nearly 150 percent in three $2,000 a year into a Coverdell Education the Internal Revenue Code of 1986 (defining years. Over $10 billion of these loans Savings account. The actual contribu- Coverdell education savings account) is are private. Over the past five years, tion is not tax deductible, but all earn- amended by striking ‘‘$2,000’’ and inserting borrowing through banks and other ings in this account are free from taxes ‘‘$5,000’’. private lenders has increased from 7 when they are withdrawn to pay for (b) CONFORMING AMENDMENT.—Section 4973(e)(1)(A) of the Internal Revenue Code of percent to 16 percent of education loan school. 1986 is amended by striking ‘‘$2,000’’ and in- volume. However, the current $2,000 annual serting ‘‘$5,000’’. Although borrowing is an acceptable limit on Coverdell contributions will (c) EFFECTIVE DATE.—The amendments way to pay for college, the financial be repealed in 2010 unless Congress acts made by this section shall apply to taxable consequences of high debt can still to extend it. If we don’t extend the con- years beginning after December 31, 2004. ensue, and students spend years paying tribution level, the maximum con- S. 76 back loans, undermining their ability tribution will drop to $500. Be it enacted by the Senate and House of Rep- to purchase a home or save for retire- While the current tax benefit makes resentatives of the United States of America in ment. Additionally, college students on it easier to save for college, the Edu- Congress assembled, average graduate with about $3,300 in cation Savings for Students Act would SECTION 1. SHORT TITLE. credit card debit alone. Concern about increase the annual contributions from This Act may be cited as the ‘‘The College the increase in educational loan debt $2,000 to $5,000; making this change per- Savings Act of 2005’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00145 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S252 CONGRESSIONAL RECORD — SENATE January 24, 2005 SEC. 2. INCREASE IN MAXIMUM ANNUAL CON- ‘‘(A) Section 219(d)(2) (relating to no deduc- not exceed the costs of advanced education TRIBUTION FOR COVERDELL EDU- tion for rollovers), (as defined by section 2005(e)(3) of title 10, CATION SAVINGS ACCOUNTS. ‘‘(B) Section 530(b)(5) (relating to time United States Code, as in effect on the date (a) IN GENERAL.—Section 530(b)(1)(A)(iii) of when contributions deemed made), of the enactment of this section) attrib- the Internal Revenue Code of 1986 (defining ‘‘(C) Section 530(f) (relating to community utable to such attendance. Coverdell education savings account) is property laws), ‘‘(C) CONTRIBUTIONS RETURNED BEFORE CER- amended by striking ‘‘$2,000’’ and inserting ‘‘(D) Section 530(g) (relating to custodial TAIN DATE.—Subparagraph (A) shall not ‘‘$5,000’’. accounts), and apply to the distribution of any contribution (b) CONFORMING AMENDMENT.—Section ‘‘(E) Section 530(h) (relating to reports). made during a taxable year on behalf of the 4973(e)(1)(A) of the Internal Revenue Code of ‘‘(c) REDUCTION IN PERMITTED CONTRIBU- designated beneficiary if— 1986 is amended by striking ‘‘$2,000’’ and in- TION BASED ON ADJUSTED GROSS INCOME.— ‘‘(i) such distribution is made before the serting ‘‘$5,000’’. ‘‘(1) IN GENERAL.—The maximum amount first day of the sixth month of the taxable (c) EFFECTIVE DATE.—The amendments which a contributor could otherwise make to year following the taxable year, and made by this section shall apply to taxable an account under this section shall be re- ‘‘(ii) such distribution is accompanied by years beginning after December 31, 2004. duced by an amount which bears the same the amount of net income attributable to SEC. 3. EDUCATION SAVINGS ACCOUNTS. ratio to such maximum amount as— such excess contribution. (a) DEDUCTION FOR CONTRIBUTIONS.—Part ‘‘(A) the excess of— ‘‘(i) the contributor’s modified adjusted Any net income described in clause (ii) shall VII of subchapter B of chapter 1 of the Inter- be included in gross income for the taxable nal Revenue Code of 1986 (relating to addi- gross income for such taxable year, over ‘‘(ii) $95,000 ($190,000 in the case of a joint year in which such excess contribution was tional itemized deductions for individuals) is made. amended by redesignating section 224 as sec- return), bears to ‘‘(B) $15,000 ($30,000 in the case of a joint re- ‘‘(4) ROLLOVER CONTRIBUTIONS.—Paragraph tion 225 and inserting after section 223 the (1) shall not apply to any amount paid or dis- following new section: turn). ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— tributed from an education savings account ‘‘SEC. 224. EDUCATION SAVINGS. For purposes of paragraph (1), the term to the extent that the amount received is ‘‘(a) DEDUCTION ALLOWED.—In the case of ‘modified adjusted gross income’ means the paid, not later than the 60th day after the an individual, there shall be allowed as a de- adjusted gross income of the taxpayer for the date of such payment or distribution, into duction an amount equal to the amount of taxable year increased by any amount ex- another education savings account for the contributions made by such individual to an cluded from gross income under section 911, benefit of the same beneficiary or a member education savings account during the tax- 931, or 933. of the family (within the meaning of section able year. ‘‘(d) TAX TREATMENT OF ACCOUNTS.— 529(e)(2)) of such beneficiary who has not at- ‘‘(b) DEFINITIONS.— ‘‘(1) IN GENERAL.—An education savings ac- tained age 30 as of such date. The preceding ‘‘(1) EDUCATION SAVINGS ACCOUNT.—The count is exempt from taxation under this sentence shall not apply to any payment or term ‘education savings account’ means a subtitle unless such account has ceased to be distribution if it applied to any prior pay- trust created or organized in the United an education savings account. Notwith- ment or distribution during the 12-month pe- States exclusively for the purpose of paying standing the preceding sentence, any such riod ending on the date of the payment or the qualified education expenses of an indi- account is subject to the taxes imposed by distribution. vidual who is the designated beneficiary of section 511 (relating to imposition of tax on ‘‘(5) CHANGE IN BENEFICIARY.—Any change the trust (and designated as an education unrelated business income of charitable, etc. in the beneficiary of an education savings ac- savings account at the time created or orga- organizations). count shall not be treated as a distribution nized), but only if the written governing in- ‘‘(2) ACCOUNT TERMINATIONS.—Rules similar for purposes of paragraph (1) if the new bene- strument creating the trust meets the fol- to the rules of paragraphs (2) and (4) of sec- ficiary is a member of the family (as so de- lowing requirements: tion 408(e) shall apply to education savings fined) of the old beneficiary and has not at- ‘‘(A) No contribution will be accepted— accounts, and any amount treated as distrib- tained age 30 as of the date of such change. ‘‘(i) unless it is in cash, uted under such rules shall be treated as not ‘‘(6) SPECIAL RULES FOR DEATH AND DI- ‘‘(ii) after the date on which such bene- used to pay qualified education expenses. VORCE.—Rules similar to the rules of para- ficiary attains age 18, or ‘‘(e) TREATMENT OF DISTRIBUTIONS.— graphs (7) and (8) of section 220(f) shall apply. ‘‘(iii) except in the case of rollover con- ‘‘(1) IN GENERAL.—Any distribution shall be In applying the preceding sentence, members tributions described in subsection (e)(4), if includible in the gross income of the dis- of the family (as so defined) of the des- such contribution would result in aggregate tributee in the manner as provided in section ignated beneficiary shall be treated in the contributions for the taxable year exceeding 72. same manner as the spouse under such para- $5,000. ‘‘(2) SPECIAL RULES FOR APPLYING ESTATE graph (8). ‘‘(B) The trustee is a bank (as defined in AND GIFT TAXES WITH RESPECT TO ACCOUNT.— ‘‘(7) DEEMED DISTRIBUTION ON REQUIRED DIS- section 408(n)) or another person who dem- Rules similar to the rules of paragraphs (2), TRIBUTION DATE.—In any case in which a dis- onstrates to the satisfaction of the Secretary (4), and (5) of section 529(c) shall apply for tribution is required under subsection that the manner in which that person will purposes of this section. (b)(1)(E), any balance to the credit of a des- administer the trust will be consistent with ‘‘(3) ADDITIONAL TAX FOR DISTRIBUTIONS NOT ignated beneficiary as of the close of the 30- the requirements of this section or who has USED FOR EDUCATIONAL EXPENSES.— day period referred to in such subsection for so demonstrated with respect to any indi- ‘‘(A) IN GENERAL.—The tax imposed by this making such distribution shall be deemed vidual retirement plan or any Coverdell edu- chapter for any taxable year on any taxpayer distributed at the close of such period.’’. cation savings account. who receives a payment or distribution from (b) TAX ON EXCESS CONTRIBUTIONS.— ‘‘(C) No part of the trust assets will be in- an education savings account which is in ex- (1) IN GENERAL.—Subsection (a) of section vested in life insurance contracts. cess of the qualified education expenses of 4973 of the Internal Revenue Code of 1986 (re- ‘‘(D) The assets of the trust shall not be the designated beneficiary during the tax- lating to tax on excess contributions to cer- commingled with other property except in a able year shall be increased by 10 percent of tain tax-favored accounts and annuities) is common trust fund or common investment the amount of such excess. amended by striking ‘‘or’’ at the end of para- fund. ‘‘(B) EXCEPTIONS.—Subparagraph (A) shall graph (4), by inserting ‘‘or’’ at the end of ‘‘(E) Except as provided in subsection not apply if the payment or distribution is— paragraph (5), and by inserting after para- (e)(6), any balance to the credit of the des- ‘‘(i) made to a beneficiary (or to the estate graph (5) the following new paragraph: ignated beneficiary on the date on which the of the designated beneficiary) on or after the ‘‘(6) an education savings account (as de- beneficiary attains age 30 shall be distrib- death of the designated beneficiary, fined in section 224),’’. uted within 30 days after such date to the ‘‘(ii) attributable to the designated bene- (2) EXCESS CONTRIBUTION.—Section 4973 of beneficiary or, if the beneficiary dies before ficiary’s being disabled (within the meaning such Code is amended by adding at the end attaining age 30, shall be distributed within of section 72(m)(7)), the following new subsection: 30 days after the date of death of such bene- ‘‘(iii) made on account of a scholarship, al- ficiary. lowance, or payment described in section ‘‘(h) EXCESS CONTRIBUTIONS TO EDUCATION ‘‘(F) The age limitations in subparagraphs 25A(g)(2) received by the account holder to SAVINGS ACCOUNTS.—For purposes of this (A)(ii) and (E), and paragraphs (4) and (5) of the extent the amount of the payment or dis- section— subsection (e), shall not apply to any des- tribution does not exceed the amount of the ‘‘(1) IN GENERAL.—In the case of education ignated beneficiary with special needs (as de- scholarship, allowance, or payment, or savings accounts maintained for the benefit termined under regulations prescribed by the ‘‘(iv) made on account of the attendance of of any one beneficiary, the term ‘excess con- Secretary). the designated beneficiary at the United tributions’ means the sum of— ‘‘(2) QUALIFIED EDUCATION EXPENSES.—The States Military Academy, the United States ‘‘(A) the amount by which the amount con- term ‘qualified education expenses’ has the Naval Academy, the United States Air Force tributed for the taxable year to such ac- meaning given such term in section 530(b)(2). Academy, the United States Coast Guard counts exceeds $5,000 (or, if less, the sum of ‘‘(3) CERTAIN RULES TO APPLY.—Rules simi- Academy, or the United States Merchant the maximum amounts permitted to be con- lar to the following rules shall apply for pur- Marine Academy, to the extent that the tributed under section 224(c) by the contribu- poses of this section: amount of the payment or distribution does tors to such accounts for such year); and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00146 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S253 ‘‘(B) the amount determined under this ing to craft this legislation, actually leagues, Mr. SESSIONS, Mr. LIEBERMAN subsection for the preceding taxable year, re- supports it and the funding it will re- and others in cosponsoring the HE- duced by the sum of— quire. ROES Act of 2005. Although Congress ‘‘(i) the distributions out of the accounts I asked last year about it when our last year raised the amount offered to for the taxable year (other than distribu- defense bill moved. When no consensus tions described in section 224(e)(4)); and families following the death of a serv- ‘‘(ii) the excess (if any) of the maximum was reached as that bill was moving, ice man or woman for the first time in amount which may be contributed to the ac- we put in the legislation a requirement over a decade, I continue to believe counts for the taxable year over the amount that the DOD work with the Congress that even that amount is an inad- contributed to the accounts for the taxable to develop a plan to improve death ben- equate level of support in this day and year. efits, and they have done so. It is the age. ‘‘(2) SPECIAL RULES.—For purposes of para- right thing to do. For decades, we offered a nominal graph (1), the following contributions shall Just last Monday, I was in Iraq. I had amount of between $800 and $3,000, de- not be taken into account: the ability to travel throughout that ‘‘(A) Any contribution which is distributed pending upon rank, for immediate ex- country, and we flew back from Bagh- penses to surviving family members out of the education savings account in a dad to Kuwait about 9 or 10 that night. distribution to which section 224(e)(3)(C) ap- upon the death of a member of our plies. On the C–130 in which we flew back, in armed forces. In the wake of the 1991 ‘‘(B) Any rollover contribution.’’. the bay of that great aircraft were two Gulf War, Congress raised this to a flat (c) FAILURE TO PROVIDE REPORTS ON EDU- flag-draped coffins of American service $6,000, of which half was subject to in- CATION SAVINGS ACCOUNTS.—Paragraph (2) of personnel who had given their life to come tax. Finally, we raised that to section 6693(a) of the Internal Revenue Code their country. There should be no of 1986 (relating to failure to provide reports $12,000, made the entire amount tax- doubt in any soldier’s mind that if free, and tied future increases to the on individual retirement accounts or annu- something happens to them while in ities) is amended by striking ‘‘and’’ at the annual increase in base pay. end of subparagraph (D), by striking the pe- service to their country, their family Of course, no amount of money can riod at the end of subparagraph (E) and in- will be well taken care of. The Amer- replace the loved ones that are lost in serting ‘‘, and’’, and by adding at the end the ican people want that. I believe the combat. It’s an unimaginable loss following new subparagraph: people in this Congress will support which can never be ameliorated by fi- ‘‘(F) section 224(b)(3)(E) (relating to edu- that. nancial comfort. However, despite the cation savings accounts).’’. This legislation needs to be passed increase in the level of support last (d) CLERICAL AMENDMENT.—The table of promptly. I am proud that Senator year, the amount that we currently section for part VII of subchapter B of chap- WARNER and Senator FRIST have indi- offer the families of our soldiers re- ter 1 of the Internal Revenue Code of 1986 is cated they would accelerate it and do amended by striking the item relating to mains woefully inadequate to try to what they can to see that it does be- section 224 and inserting the following new begin to address the immediate costs of come law. I look forward to working items: funeral arrangements, the loss of what with Senator LIEBERMAN and my fellow ‘‘Sec. 224. Education savings. may in most cases be the primary wage ‘‘Sec. 225. Cross reference.’’. Senators to move this bill to final pas- sage. earner in the family and the additional (e) EFFECTIVE DATE.—The amendments costs associated with the loss of a made by this section shall apply to contribu- I see the chairman of Armed Serv- tions made in taxable years beginning after ices, Senator WARNER. I express my ap- mother, father, or spouse. December 31, 2004. preciation to him for his commitment When one considers how long it may to do what he can to move this bill for- take for a family to regain its footing, By Mr. SESSIONS (for himself ward promptly. how surviving family members may and Mr. LIEBERMAN): I yield the floor. need to move out of military-provided S. 77. A bill to amend titles 10 and 38, The PRESIDING OFFICER. The Sen- housing and to secure private housing United States Code, to improve death ator from Virginia. elsewhere, how a surviving spouse may benefits for the families of deceased Mr. WARNER. Mr. President, I thank need to search for employment to sup- members of the Armed Forces, and for my colleague for his thoughtful re- port his or her family, and how long it other purposes; to the Committee on marks. I so commit to do that. may take for insurance benefits to be Armed Services. Ms. SNOWE. Mr. President, Amer- paid out, this improvement in benefits Mr. SESSIONS. Mr. President, I want ica’s finest citizens and the world’s is the very least we can do to alleviate to take a few minutes to discuss legis- greatest military men and women con- the burdens and financial worry that lation that I offer today along with tinue to put themselves in harm’s way come with such a loss. Senator LIEBERMAN and I believe 15 in support of the establishment of free- I strongly support raising the other cosponsors called the HEROES dom and democracy in Iraq and Af- amount to $100,000, in addition to in- Act of 2005, the Honoring Every Re- ghanistan. They also are helping mil- creasing the maximum benefit of the quirement of Exemplary Service Act, lions throughout South and Southeast Servicemen’s Group Life Insurance pol- that will increase substantially the Asia to recover from the devastating icy from $250,000 to $400,000, as this bill death benefits provided to the families tsunami that destroyed so many lives. does. of our service personnel who lose their These great Americans have made a In acknowledgment of and apprecia- lives in service to their country. I see commitment to serve this country tion for the sacrifices of our brave men Senator ALLEN. I know he deeply cares come what may. They are prepared to and women in uniform, I hope that we about this issue. We are working to- make the ultimate sacrifice with the can all agree on the need to help ensure gether on this same idea. knowledge that in doing so, they are that the futures of their children are Fundamentally, this bill would raise defending the security of our Nation secured should they sacrifice their the basic death benefit from $12,420 to and advancing the very ideals upon lives in combat. $100,000. It will raise the servicemen’s which this great country was founded. It is for the sake of our brave service- group life insurance payment from Just as these men and women have men and women and the families who $250,000 to $400,000. Senator LIEBERMAN agreed to make this commitment, so depend on them that we introduce this and I, all of us in this body believe we too must we commit to supporting the legislation and for them that I urge need to make sure that our service- families of these soldiers who give the full support. men’s families are well taken care of if ‘‘last full measure of devotion’’ for us. something were to happen to them. It is the very least we can do to provide By Mrs. HUTCHISON (for herself, I am very pleased that Senator FRIST a greater degree of peace of mind to Mr. BROWNBACK, Mr. CORNYN, on Friday made this part of his leader- our service men and women, who Mr. BUNNING, Mr. BURNS, Mr. ship package and that Senator JOHN should always know and trust that a HAGEL, and Mr. ENSIGN): WARNER, chairman of the Armed Serv- grateful America will stand with and S. 78. A bill to make permanent mar- ices Committee, promised quick action support their family members should riage penalty relief; to the Committee in the committee on the subject. And I tragedy strike. on Finance. am very pleased that the Defense De- It is in recognition of their extraor- Ms. HUTCHISON. Mr. President I am partment has worked with us in help- dinary selflessness that I join my col- pleased to introduce a bill to provide

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00147 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S254 CONGRESSIONAL RECORD — SENATE January 24, 2005 permanent tax relief from the marriage sunset of provisions of such Act) shall not tion received by the Secretary more than penalty—the most egregious, anti-fam- apply to sections 301, 302, and 303 of such Act two years after the date of the enactment of ily provision that has been in the tax (relating to marriage penalty relief). this Act. code. One of my highest priorities in SEC. 5. PROSPECTIVE APPLICATION OF DETER- By Mr. INOUYE: MINATIONS BY THE SECRETARY OF the U.S. Senate has been to relieve S. 79. A bill to require the Secretary THE ARMY. American taxpayers of this punitive of the Army to determine the validity No benefits shall accrue to any person for burden. of the claims of certain Filipinos that any period before the date of the enactment Over the past four years we have they performed military service on be- of this Act as a result of the enactment of made important strides to eliminate half of the United States during World this Act. this unfair tax and provide marriage War II; to the Committee on Veterans’ SEC. 6. REGULATIONS. penalty relief by raising the standard Affairs. The Secretary of the Army shall prescribe deduction and enlarging the 15 percent Mr. INOUYE. Mr. President, I am re- regulations to carry out sections 1, 3, and 4. tax bracket for married joint filers to introducing legislation today that SEC. 7. RESPONSIBILITIES OF THE SECRETARY twice that of single filers. Before these OF VETERANS AFFAIRS. would direct the Secretary of the Army Any entitlement of a person to receive vet- provisions were changed, 44 million to determine whether certain nationals erans’ benefits by reason of this Act shall be married couples, including 2.4 million of the Philippine Islands performed administered by the Department of Veterans Texas families, paid an average penalty military service on behalf of the Affairs pursuant to regulations prescribed by of $1,480. United States during World War II. the Secretary of Veterans Affairs. Enacting marriage penalty relief has Mr. President, our Filipino veterans SEC. 8. DEFINITION. been a giant step for tax fairness, but fought side by side with Americans and In this Act, the term ‘‘World War II’’ it may be fleeting. Even as married sacrificed their lives on behalf of the means the period beginning on December 7, couples use the money they now save United States. This legislation would 1941, and ending on December 31, 1946. to put food on the table and clothes on confirm the validity of their claims their children, a tax increase looms in and further allow qualified individuals By Mr. INOUYE: the future. Since the 2001 tax relief bill the opportunity to apply for military S. 80. A bill to restore the traditional was restricted, the marriage penalty and veterans benefits that, I believe, day of observance of Memorial Day, provisions will only be in effect they are entitled to. As this population and for other purposes; to the Com- through 2010. In 2011, marriage will becomes older, it is important for our mittee on the Judiciary. again be a taxable event and 43 percent nation to extend its firm commitment Mr. INOUYE. Mr. President, in our of married couples will again pay more to the Filipino veterans and their fami- effort to accommodate many Ameri- in taxes unless we act decisively. lies who participated in making us the cans by making Memorial Day the last Given the challenges many families great nation that we are today. Monday in May, we have lost sight of face in making ends meet, we must Mr. President, I ask unanimous con- the significance of this day to our na- make sure we do not backtrack on this sent that the text of my bill be printed tion. My bill would restore Memorial important reform. in the RECORD. Day to May 30 and authorize our flag to The benefits of marriage are well es- There being no objection, the bill was fly at half mast on that day. In addi- tablished, yet, without marriage pen- ordered to be printed in the RECORD, as tion, this legislation would authorize alty relief, the tax code provides a sig- follows: the President to issue a proclamation nificant disincentive for people to walk S. 79 designating Memorial Day and Vet- down the aisle. Marriage is a funda- Be it enacted by the Senate and House of Rep- erans Day as days for prayer and cere- mental institution in our society and resentatives of the United States of America in monies. This legislation would help re- Congress assembled, store the recognition our veterans de- should not be discouraged by the IRS. SECTION 1. DETERMINATIONS BY THE SEC- Children living in a married household serve for the sacrifices they have made RETARY OF THE ARMY. on behalf of our Nation. are far less likely to live in poverty or (a) IN GENERAL.—Upon the written applica- to suffer from child abuse. Research in- tion of any person who is a national of the Mr. President, I ask unanimous con- dicates they are less likely to be de- Philippine Islands, the Secretary of the sent that the text of my bill be printed pressed or have developmental prob- Army shall determine whether such person in the RECORD. performed any military service in the Phil- There being no objection, the bill was lems. Scourges such as adolescent drug ippine Islands in aid of the Armed Forces of use are less common in married fami- ordered to be printed in the RECORD, as the United States during World War II which follows: lies, and married mothers are less like- qualifies such person to receive any mili- ly to be victims of domestic violence. tary, veterans’, or other benefits under the S. 80 We should celebrate marriage, not laws of the United States. Be it enacted by the Senate and House of Rep- penalize it. The bill I am offering (b) INFORMATION TO BE CONSIDERED.—In resentatives of the United States of America in would make marriage penalty relief making a determination for the purpose of Congress assembled, subsection (a), the Secretary shall consider permanent, because we cannot be satis- SECTION 1. RESTORATION OF TRADITIONAL DAY all information and evidence (relating to OF OBSERVANCE OF MEMORIAL fied until couples never again must de- service referred to in subsection (a)) that is DAY. cide between love and money. Marriage available to the Secretary, including infor- (a) DESIGNATION OF LEGAL PUBLIC HOLI- should not be a taxable event. mation and evidence submitted by the appli- DAY.—Section 6103(a) of title 5, United States I call on the Senate to finish the job cant, if any. Code, is amended by striking ‘‘Memorial we started to make marriage penalty SEC. 2. CERTIFICATE OF SERVICE. Day, the last Monday in May.’’ and inserting relief permanent today. (a) ISSUANCE OF CERTIFICATE OF SERVICE.— the following: Mr. President, I ask unanimous con- The Secretary of the Army shall issue a cer- ‘‘Memorial Day, May 30.’’. tificate of service to each person determined (b) OBSERVANCES AND CEREMONIES.—Sec- sent that a copy of the bill be printed by the Secretary to have performed military tion 116 of title 36, United States Code, is in the RECORD. service described in section 1(a). amended— There being no objection, the bill was (b) EFFECT OF CERTIFICATE OF SERVICE.—A (1) in subsection (a), by striking ‘‘The last ordered to be printed in the RECORD, as certificate of service issued to any person Monday in May’’ and inserting ‘‘May 30’’; follows: under subsection (a) shall, for the purpose of and any law of the United States, conclusively S. 78 (2) in subsection (b)— establish the period, nature, and character of (A) by striking ‘‘and’’ at the end of para- Be it enacted by the Senate and House of Rep- the military service described in the certifi- graph (3); resentatives of the United States of America in cate. (B) by redesignating paragraph (4) as para- Congress assembled, SEC. 3. APPLICATIONS BY SURVIVORS. graph (5); and SECTION 1. SHORT TITLE. An application submitted by a surviving (C) by inserting after paragraph (3) the fol- This Act may be cited as the ‘‘Permanent spouse, child, or parent of a deceased person lowing new paragraph (4): Marriage Penalty Relief Act of 2005’’. described in section 1(a) shall be treated as ‘‘(4) calling on the people of the United SEC. 2. REPEAL OF SUNSET ON MARRIAGE PEN- an application submitted by such person. States to observe Memorial Day as a day of ALTY RELIEF. SEC. 4. LIMITATION PERIOD. ceremonies for showing respect for American Title IX of the Economic Growth and Tax The Secretary of the Army may not con- veterans of wars and other military con- Relief Reconciliation Act of 2001 (relating to sider for the purpose of this Act any applica- flicts; and’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00148 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S255 (c) DISPLAY OF FLAG.—Section 6(d) of title apply to cooperatives which have been Under current law, a variety of excise 4, United States Code, is amended by strik- or are now being financed by any fed- taxes on air transportation are im- ing ‘‘the last Monday in May;’’ and inserting eral, state, or local programs for the posed to finance the Airport and Air- ‘‘May 30;’’. purpose of assisting in the construction way Trust funds program that is ad- By Mr. INOUYE: of affordable housing cooperatives or ministered by the Federal Aviation Ad- S. 83. A bill to amend the Internal the conversion of rental units to af- ministration. For example, an air pas- Revenue Code of 1986 to provide tax re- fordable housing cooperatives. I urge senger transportation excise tax is im- lief for the conversion of cooperative my colleagues’ consideration and sup- posed on users of our nation’s airports housing corporations into condomin- port for this measure. and airways. The Congress intended iums; to the Committee on Finance. Mr. President, I ask unanimous con- that the tax be levied on passengers Mr. INOUYE. Mr. President, today I sent that the text of this bill be printed traveling on scheduled commercial air- rise to introduce legislation which in the RECORD. lines. In addition, for the most part, would amend the Internal Revenue There being no objection, the bill was the tax is imposed on each flight seg- Code of 1986 to allow Cooperative Hous- ordered to be printed in the RECORD, as ment. ing Corporations (co-ops), to convert to follows: The Congress did not intend to have condominium forms of ownership. S. 83 the tax applied to air tour operators, Under current law, a conversion from Be it enacted by the Senate and House of Rep- who utilize our system of airways dif- cooperative shareholding to condo- resentatives of the United States of America in ferently. Our national transportation Congress assembled, minium ownership is taxable at a cor- system receives little or no benefit SECTION 1. NONRECOGNITION OF GAIN OR LOSS porate level as well as an individual ON DISTRIBUTIONS BY COOPERA- from aerial sightseeing operations. Air level. The conversion is treated as a TIVE HOUSING CORPORATIONS. tour operations are not scheduled com- corporate liquidation, and therefore (a) IN GENERAL.—Section 216(e) of the In- mercial airlines. They are for enter- taxed accordingly. In addition, a cap- ternal Revenue Code of 1986 (relating to dis- tainment purposes and are circular, in ital gains tax is levied on any increase tributions by cooperative housing corpora- tions) is amended to read as follows: that they begin and end at the same between the owner’s basis in the co-op ‘‘(e) DISTRIBUTIONS BY COOPERATIVE HOUS- destination point. share pre-conversion and the market ING CORPORATIONS.— Hawaii is among a small handful of value of the condominium interest ‘‘(1) IN GENERAL.—Except as provided in states where our citizens can enjoy aer- post-conversion. This double taxation regulations— ial tours of sights that are remote or dissuades condominium conversion be- ‘‘(A) no gain or loss shall be recognized to difficult to reach by land. Aerial sight- cause the owner is being taxed on the a cooperative housing corporation on the dis- seeing tours are also enjoyed in Alas- transaction which is nothing more tribution by such corporation of a dwelling ka, California, Washington, Arizona, unit to a stockholder in such corporation if than a change in the form of owner- such distribution is in exchange for the and even New York City. The imposi- ship. While the Internal Revenue Serv- stockholder’s stock in such corporation, and tion of the air transportation excise ice concedes that there are no ‘‘(B) no gain or loss shall be recognized to tax on aerial sightseeing flights will discernable advantages to society of a stockholder of such corporation on the significantly raise the consumer price the cooperative form of ownership, transfer of such stockholder’s stock in an ex- on air tours. Doing so will cause many they do not view federal tax statutes as change described in subparagraph (A). small aerial sightseeing tour operators, providing sufficient flexibility with ‘‘(2) BASIS.—The basis of a dwelling unit especially in my home state, to lose which to address the obstacles of con- acquired in a distribution to which para- customers. Many of these small compa- graph (1) applies shall be the same as the version. basis of the stock in the cooperative housing nies have struggled to stay in business Cooperative housing organizes the corporation for which it is exchanged, de- after incurring significant losses in the ownership structure into a corporation, creased in the amount of any money received months following September 11, 2001, with shares of stock for each apart- by the taxpayer in such exchange. when our government imposed flight ment unit, which are sold to buyers. ‘‘(3) APPLICABILITY.—This subsection shall restrictions across the nation. Those The corporation then issues a propri- not apply with respect to any dwelling unit flight restrictions prevented many etary lease entitling the owner of the the basis of which includes financing under flight operations in all segments of the stock to the use of the unit in per- any Federal, State, or local program for the general aviation industry for many petuity. Because the investment is in purpose of assisting the construction of af- fordable housing cooperatives or the conver- months into early 2002. the form of a share of stock, investors sion of rental units to affordable housing co- Accordingly, I urge my colleagues to sometimes lose their entire investment operatives.’’. support my bill, which would amend as a result of debt incurred by the cor- (b) EFFECTIVE DATE.—The amendment the Internal Revenue Code of 1986 to poration in construction and develop- made by this section shall apply to distribu- exempt certain sightseeing trips from ment. In addition, due to the structure tions after the date of the enactment of this the air transportation excise tax. of a cooperative housing corporation, a Act. Under my bill, air tour operations prospective purchaser of shares in the By Mr. INOUYE: would still be subject to the aviation corporation from an existing tenant- S. 84. A bill to amend the Internal fuel excise tax. stockholders has difficulty obtaining Revenue Code of 1986 to exempt certain I ask unanimous consent that the mortgage financing for the purchase. sightseeing flights from taxes on air text of my bill be printed in the Furthermore, tenant-stockholders of transportation; to the Committee on RECORD. cooperative housing also encounter dif- Finance. There being no objection, the bill was ficulties in securing bank loans for the Mr. INOUYE. Mr. President, I rise to ordered to be printed in the RECORD, as full value of their investment. introduce a bill that would amend the follows: As a result, owners of cooperative Internal Revenue Code of 1986 to ex- S. 84 housing are increasingly looking to- empt certain sightseeing flights from Be it enacted by the Senate and House of Rep- ward conversion to the condominium the air transportation excise tax. A resentatives of the United States of America in structure of ownership. Condominium clarifying amendment to the Tax Code Congress assembled, ownership permits the owner of a unit SECTION 1. CERTAIN SIGHTSEEING FLIGHTS EX- is needed due to a problem that exists EMPT FROM TAXES ON AIR TRANS- to own the unit itself, eliminating the in the application of the excise tax. PORTATION. cooperative housing dilemma of cor- In 1986, the Internal Revenue Service (a) IN GENERAL.—Section 4281 of the Inter- porate debt that supercedes the invest- (IRS), issued a Private Letter Ruling in nal Revenue Code of 1986 (relating to small ment of cooperative housing share which it exempted one Hawaii-based aircraft on nonestablished lines) is amended owners, and other financial concerns. air tour operator from paying the air by adding at the end the following new sen- The legislation I introduce today will passenger transportation excise tax, tence: ‘‘For purposes of this section, an air- remove the penalty of double taxation but has not applied equal treatment to craft shall not be considered as operated on from the conversion of cooperative an established line if such aircraft is oper- other similarly situated aerial sight- ated on a flight the sole purpose of which is housing to condominium ownership, seeing tour operators. It is my belief sightseeing.’’. and will greatly benefit co-op owners that the IRS should be consistent in its (b) EFFECTIVE DATE.—The amendment across the nation. The bill does not application of this excise tax. made by this section shall apply with respect

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to transportation beginning on or after the new techniques and procedures, promoting (c) RIGHT TO INSPECT BOOKS AND date of the enactment of this Act, but shall interdisciplinary practices, and stimulating RECORDS.—All books and records of the cor- not apply to any amount paid before such multidisciplinary exchange of scientific and poration may be inspected by any member date. professional information. having the right to vote, or by any agent or (3) Upon request, advising the President, attorney of such member, for any proper pur- By Mr. INOUYE: the members of the President’s Cabinet, Con- pose, at any reasonable time. S. 87. A bill to recognize the organi- gress, Federal agencies, and other relevant (d) APPLICATION OF STATE LAW.—Nothing zation known as the National Acad- groups about practitioner issues in health in this section shall be construed to con- emies of Practice; to the Committee on care and health care policy, from a multi- travene any applicable State law. the Judiciary. disciplinary perspective. SEC. 12. ANNUAL REPORT. Mr. INOUYE. Mr. President today I SEC. 5. SERVICE OF PROCESS. The corporation shall report annually to With respect to service of process, the cor- am introducing legislation that would the Congress concerning the activities of the poration shall comply with the laws of the corporation during the preceding fiscal year. provide a federal charter for the Na- State in which it is incorporated and those The report shall not be printed as a public tional Academies of Practice. This or- States in which it carries on its activities in document. ganization represents outstanding furtherance of its corporate purposes. SEC. 13. RESERVATION OF RIGHT TO AMEND OR health care professionals who have SEC. 6. MEMBERSHIP. REPEAL CHARTER. made significant contributions to the Eligibility for membership in the corpora- The right to alter, amend, or repeal this practice of applied psychology, medi- tion and the rights and privileges of mem- Act is expressly reserved to Congress. cine, dentistry, nursing, optometry, os- bers shall be as provided in the bylaws of the SEC. 14. DEFINITION. teopathic medicine, pharmacy, podia- corporation. In this Act, the term ‘‘State’’ includes the SEC. 7. BOARD OF DIRECTORS; COMPOSITION; District of Columbia, the Commonwealth of try, social work, and veterinary medi- RESPONSIBILITIES. cine. When fully established, each of Puerto Rico, and the territories and posses- The composition and the responsibilities of sions of the United States. the ten academies will possess 150 dis- the board of directors of the corporation SEC. 15. TAX-EXEMPT STATUS. tinguished practitioners selected by shall be as provided in the articles of incor- The corporation shall maintain its status their peers. This umbrella organization poration of the corporation and in con- as an organization exempt from taxation as will be able to provide the Congress of formity with the laws of the State in which provided in the Internal Revenue Code of 1986 the United States and the executive it is incorporated. or any corresponding similar provision. SEC. 8. OFFICERS OF THE CORPORATION. branch with considerable health policy SEC. 16. TERMINATION. The officers of the corporation and the expertise, especially from the perspec- If the corporation fails to comply with any election of such officers shall be as provided of the restrictions or provisions of this Act tive of those individuals who are in the in the articles of incorporation of the cor- the charter granted by this Act shall termi- forefront of actually providing health poration and in conformity with the laws of nate. care. the State in which it is incorporated. As we continue to grapple with the SEC. 9. RESTRICTIONS. By Mr. INOUYE: many complex issues surrounding the (a) USE OF INCOME AND ASSETS.—No part of S. 88. A bill to allow the psychiatric delivery of health care services, it is the income or assets of the corporation shall or psychological examinations required clearly in our best interest to ensure inure to any member, officer, or director of under chapter 313 of title 18, United that the Congress has direct and imme- the corporation or be distributed to any such States Code, relating to offenders with diate access to the recommendations of person during the life of the charter under this Act. Nothing in this subsection shall be mental disease or defect, to be con- an interdisciplinary body of health construed to prevent the payment of reason- ducted by a clinical social worker; to care practitioners. able compensation to the officers of the cor- the Committee on the Judiciary. Mr. President, I ask unanimous con- poration or reimbursement for actual nec- Mr. INOUYE. Mr. President, today I sent that the text of this bill be printed essary expenses in amounts approved by the introduce legislation to amend Title 18 in the RECORD. board of directors. of the United States Code to allow our There being no objection, the bill was (b) LOANS.—The corporation shall not Nation’s clinical social workers to use ordered to be printed in the RECORD, as make any loan to any officer, director, or their mental health expertise on behalf follows: employee of the corporation. (c) POLITICAL ACTIVITY.—The corporation, of the federal judiciary by conducting S. 87 any officer, or any director of the corpora- psychological and psychiatric exams. Be it enacted by the Senate and House of Rep- tion, acting as such officer or director, shall I feel that the time has come to allow resentatives of the United States of America in not contribute to, support, or otherwise par- our Nation’s judicial system to have ticipate in any political activity or in any Congress assembled, access to a wide range of behavioral SECTION 1. SHORT TITLE. manner attempt to influence legislation. (d) ISSUANCE OF STOCK AND PAYMENT OF science and mental health expertise. I This Act may be cited as the ‘‘National DIVIDENDS.—The corporation shall have no am confident that the enactment of Academies of Practice Recognition Act of power to issue any shares of stock nor to de- this legislation would be very much in 2005’’. clare or pay any dividends. our Nation’s best interest. SEC. 2. CHARTER. (e) CLAIMS OF FEDERAL APPROVAL.—The The National Academies of Practice orga- Mr. President, I ask unanimous con- corporation shall not claim congressional sent that the text of this bill be printed nized and incorporated under the laws of the approval or Federal Government authority in the RECORD. District of Columbia, is hereby recognized as for any of its activities. such and is granted a Federal charter. (f) FEDERAL ADVISORY ACTIVITIES.—While There being no objection, the bill was SEC. 3. CORPORATE POWERS. providing advice to Federal agencies, the ordered to be printed in the RECORD, as The National Academies of Practice (re- corporation shall be subject to the Federal follows: ferred to in this Act as the ‘‘corporation’’) Advisory Committee Act (5 U.S.C. Appendix; S. 88 shall have only those powers granted to it 86 stat. 700). Be it enacted by the Senate and House of Rep- through its bylaws and articles of incorpora- SEC. 10. LIABILITY. resentatives of the United States of America in tion filed in the State in which it is incor- The corporation shall be liable for the acts Congress assembled, porated and subject to the laws of such of its officers and agents when acting within SECTION 1. SHORT TITLE. State. the scope of their authority. This Act may be cited as the ‘‘Psychiatric SEC. 4. OBJECTIVES AND PURPOSES OF THE COR- SEC. 11. MAINTENANCE AND INSPECTION OF and Psychlogical Examinations Act of 2005’’. PORATION. BOOKS AND RECORDS. SEC. 2. EXAMINATIONS BY CLINICAL SOCIAL The objectives and purposes for which the (a) BOOKS AND RECORDS OF ACCOUNT.—The WORKERS. corporation is organized shall be provided for corporation shall keep correct and complete Section 4247(b) of title 18, United States in the articles of incorporation and shall in- books and records of account and shall keep Code, is amended, in the first sentence, by clude the following: minutes of any proceeding of the corporation striking ‘‘psychiatrist or psychologist’’ and (1) Honoring persons who have made sig- involving any of its members, the board of inserting ‘‘psychiatrist, psychologist, or nificant contributions to the practice of ap- directors, or any committee having author- clinical social worker’’. plied dentistry, medicine, nursing, optom- ity under the board of directors. etry, osteopathy, pharmacy, podiatry, psy- (b) NAMES AND ADDRESSES OF MEMBERS.— chology, social work, veterinary medicine, The corporation shall keep at its principal By Mr. INOUYE: and other health care professions. office a record of the names and addresses of S. 89. A bill to amend title VII of the (2) Improving the effectiveness of such pro- all members having the right to vote in any Public Health Service Act to make cer- fessions by disseminating information about proceeding of the corporation. tain graduate programs in professional

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00150 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S257 psychology eligible to participate in chology’’ after ‘‘or doctor of veterinary med- S. 90 various health professions loan pro- icine or an equivalent degree’’; Be it enacted by the Senate and House of Rep- grams; to the Committee on Health, (2) in subsection (c), in the matter pre- resentatives of the United States of America in Education, Labor, and Pensions. ceding paragraph (1), by inserting ‘‘, or at a Congress assembled, school that offers a graduate program in pro- Mr. INOUYE. Mr. President, I rise to SECTION 1. SHORT TITLE; TABLE OF CONTENTS. fessional psychology’’ after ‘‘veterinary med- introduce legislation today to modify This Act may be cited as the ‘‘National icine’’; and Center for Social Work Research Act’’. Title VII of the Public Health Service (3) in subsection (k)— SEC. 2. FINDINGS. Act in order to provide students en- (A) in the matter preceding paragraph (1), Congress finds that— rolled in graduate psychology pro- by striking ‘‘or podiatry’’ and inserting ‘‘po- (1) social workers focus on the improve- diatry, or professional psychology’’; and grams with the opportunity to partici- ment of individual and family functioning (B) in paragraph (4), by striking ‘‘or pate in various health professions loan and the creation of effective health and men- podiatric medicine’’ and inserting ‘‘podiatric programs. tal health prevention and treatment inter- medicine, or professional psychology’’. Providing students enrolled in grad- ventions in order for individuals to become SEC. 3. GENERAL PROVISIONS. uate psychology programs with eligi- more productive members of society; (a) HEALTH PROFESSIONS DATA.—Section (2) social workers provide front line pre- bility for financial assistance in the 792(a) of the Public Health Service Act (42 vention and treatment services in the areas form of loans, loan guarantees, and U.S.C. 295k(a)) is amended by striking ‘‘clin- of school violence, aging, teen pregnancy, scholarships will facilitate a much- ical’’ and inserting ‘‘professional’’. child abuse, domestic violence, juvenile needed infusion of behavioral science (b) PROHIBITION AGAINST DISCRIMINATION ON BASIS OF SEX.—Section 794 of the Public crime, and substance abuse, particularly in expertise into our community of public rural and underserved communities; and health providers. There is a growing Health Service Act (42 U.S.C. 295m) is amended in the matter preceding paragraph (3) social workers are in a unique position recognition of the valuable contribu- (1) by striking ‘‘clinical’’ and inserting ‘‘pro- to provide valuable research information on tion being made by psychologists to- fessional’’. these complex social concerns, taking into ward solving some of our Nation’s most (c) DEFINITIONS.—Section 799B(1)(B) of the account a wide range of social, medical, eco- distressing problems. Public Health Service Act (42 U.S.C. nomic and community influences from an The participation of students from 295p(1)(B)) is amended by striking ‘‘clinical’’ interdisciplinary, family-centered and com- all backgrounds and clinical disciplines each place the term appears and inserting munity-based approach. is vital to the success of health care ‘‘professional’’. SEC. 3. ESTABLISHMENT OF NATIONAL CENTER FOR SOCIAL WORK RESEARCH. training. The Title VII programs play a By Mr. INOUYE: (a) IN GENERAL.—Section 401(b)(2) of the significant role in providing financial S. 90. A bill to amend the Public Public Health Service Act (42 U.S.C. support for the recruitment of minori- Health Service Act to provide for the 281(b)(2)) is amended by adding at the end the ties, women, and individuals from eco- establishment of a National Center for following: nomically disadvantaged backgrounds. Social Work Research; to the Com- ‘‘(H) The National Center for Social Work Minority therapists have an advantage mittee on Health, Education, Labor, Research.’’. (b) ESTABLISHMENT.—Part E of title IV of in the provision of critical services to and Pensions. minority populations because often the Public Health Service Act (42 U.S.C. 287 Mr. INOUYE. Mr. President, I rise et seq.) is amended by adding at the end the they can communicate with clients in today to introduce legislation to following: their own language and cultural frame- amend the Public Health Service Act ‘‘Subpart 7—National Center for Social Work work. Minority therapists are more for the establishment of a National Research likely to work in community settings Center for Social Work Research. So- ‘‘SEC. 485J. PURPOSE OF CENTER. where ethnic minority and economi- cial workers provide a multitude of ‘‘The general purpose of the National Cen- cally disadvantaged individuals are health care delivery services through- ter for Social Work Research (referred to in most likely to seek care. It is critical out America to our children, families, this subpart as the ‘Center’) is the conduct that continued support be provided for the elderly, and persons suffering from and support of, and dissemination of tar- the training of individuals who provide various forms of abuse and neglect. The geted research concerning social work meth- health care services to underserved purpose of this center is to support and ods and outcomes related to problems of sig- communities. nificant social concern. The Center shall— disseminate information about basic ‘‘(1) promote research and training that is Mr. President, I ask unanimous con- and clinical social work research, and sent that the text of this bill be printed designed to inform social work practices, training, with emphasis on service to thus increasing the knowledge base which in the RECORD. underserved and rural populations. promotes a healthier America; and There being no objection, the bill was While the Federal Government pro- ‘‘(2) provide policymakers with empiri- ordered to be printed in the RECORD, as vides funding for various social work cally-based research information to enable follows: research activities through the Na- such policymakers to better understand S. 89 tional Institutes of Health and other complex social issues and make informed Be it enacted by the Senate and House of Rep- Federal agencies, there presently is no funding decisions about service effectiveness and cost efficiency. resentatives of the United States of America in coordination or direction of these crit- Congress assembled, ical activities and no overall assess- ‘‘SEC. 485K. SPECIFIC AUTHORITIES. ‘‘(a) IN GENERAL.—To carry out the pur- SECTION 1. SHORT TITLE. ment of needs and opportunities for This Act may be cited as the ‘‘Strengthen pose described in section 485J, the Director the Public Health Service Act’’. empirical knowledge development. The of the Center may provide research training SEC. 2. PARTICIPATION IN VARIOUS HEALTH establishment of a Center for Social and instruction and establish, in the Center PROFESSIONS LOAN PROGRAMS. Work Research would result in im- and in other nonprofit institutions, research (a) LOAN AGREEMENTS.—Section 721 of the proved behavioral and mental health traineeships and fellowships in the study and Public Health Service Act (42 U.S.C. 292q) is care outcomes for our Nation’s chil- investigation of the prevention of disease, amended— dren, families, the elderly, and others. health promotion, the association of socio- (1) in subsection (a), by inserting ‘‘, or any In order to meet the increasing chal- economic status, gender, ethnicity, age and geographical location and health, the social public or nonprofit school that offers a grad- lenges of bringing cost-effective, re- uate program in professional psychology’’ work care of individuals with, and families after ‘‘veterinary medicine’’; search-based, quality health care to all of individuals with, acute and chronic ill- (2) in subsection (b)(4), by inserting ‘‘, or to Americans, we must recognize the im- nesses, child abuse, neglect, and youth vio- a graduate degree in professional psy- portant contributions of social work lence, and child and family care to address chology’’ after ‘‘or doctor of veterinary med- researchers to health care delivery and problems of significant social concern espe- icine or an equivalent degree’’; and the central role that the Center for So- cially in underserved populations and under- (3) in subsection (c)(1), by inserting ‘‘, or cial Work can provide in facilitating served geographical areas. schools that offer graduate programs in pro- their work. ‘‘(b) STIPENDS AND ALLOWANCES.—The Di- fessional psychology’’ after ‘‘veterinary med- Mr. President, I ask unanimous con- rector of the Center may provide individuals receiving training and instruction or icine’’. sent that the text of this bill be printed (b) LOAN PROVISIONS.—Section 722 of the traineeships or fellowships under subsection Public Health Service Act (42 U.S.C. 292r) is in the RECORD. (a) with such stipends and allowances (in- amended— There being no objection, the bill was cluding amounts for travel and subsistence (1) in subsection (b)(1), by inserting ‘‘, or to ordered to be printed in the RECORD, as and dependency allowances) as the Director a graduate degree in professional psy- follows: determines necessary.

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‘‘(c) GRANTS.—The Director of the Center social workers who are recognized experts in The advisory council may prepare such addi- may make grants to nonprofit institutions the area of clinical practice, education, or tional reports as it may determine appro- to provide training and instruction and research; and priate. traineeships and fellowships under sub- ‘‘(B) not more than one-third of such indi- ‘‘SEC. 485M. BIENNIAL REPORT. section (a). viduals shall be appointed from the general ‘‘The Director of the Center, after con- ‘‘SEC. 485L. ADVISORY COUNCIL. public and shall include leaders in fields of sultation with the advisory council for the ‘‘(a) DUTIES.— public policy, law, health policy, economics, Center, shall prepare for inclusion in the bi- ‘‘(1) IN GENERAL.—The Secretary shall es- and management. ennial report under section 403, a biennial re- tablish an advisory council for the Center The Secretary shall make appointments to port that shall consist of a description of the that shall advise, assist, consult with, and the advisory council in such a manner as to activities of the Center and program policies make recommendations to the Secretary and ensure that the terms of the members do not of the Director of the Center in the fiscal the Director of the Center on matters related all expire in the same year. years for which the report is prepared. The to the activities carried out by and through ‘‘(4) COMPENSATION.—Members of the advi- Director of the Center may prepare such ad- the Center and the policies with respect to sory council who are officers or employees of ditional reports as the Director determines such activities. the United States shall not receive any com- appropriate. The Director of the Center shall ‘‘(2) GIFTS.—The advisory council for the pensation for service on the advisory coun- provide the advisory council of the Center an Center may recommend to the Secretary the cil. The remaining members shall receive, opportunity for the submission of the writ- acceptance, in accordance with section 231, for each day (including travel time) they are ten comments described in section 485L(g). of conditional gifts for study, investigations, engaged in the performance of the functions ‘‘SEC. 485N. QUARTERLY REPORT. and research and for the acquisition of of the advisory council, compensation at ‘‘The Director of the Center shall prepare grounds or construction, equipment, or rates not to exceed the daily equivalent of and submit to Congress a quarterly report maintenance of facilities for the Center. the annual rate in effect for an individual at that contains a summary of findings and pol- ‘‘(3) OTHER DUTIES AND FUNCTIONS.—The ad- grade GS–18 of the General Schedule. icy implications derived from research con- visory council for the Center— ‘‘(c) TERMS.— ducted or supported through the Center.’’. ‘‘(A)(i) may make recommendations to the ‘‘(1) IN GENERAL.—The term of office of an Director of the Center with respect to re- individual appointed to the advisory council By Mr. INOUYE: search to be conducted by the Center; under subsection (b)(3) shall be 4 years, ex- S. 91. A bill to amend title VII of the ‘‘(ii) may review applications for grants cept that any individual appointed to fill a Public Health Service Act to ensure and cooperative agreements for research or vacancy on the advisory council shall serve that social work students or social training and recommend for approval appli- for the remainder of the unexpired term. A work schools are eligible for support cations for projects that demonstrate the member may serve after the expiration of under certain programs to assist indi- probability of making valuable contributions the member’s term until a successor has viduals in pursuing health careers and to human knowledge; and been appointed. programs of grants for training ‘‘(iii) may review any grant, contract, or ‘‘(2) REAPPOINTMENTS.—A member of the projects in geriatrics, and to establish cooperative agreement proposed to be made advisory council who has been appointed or entered into by the Center; under subsection (b)(3) for a term of 4 years a social work training program; to the ‘‘(B) may collect, by correspondence or by may not be reappointed to the advisory Committee on Health, Education, personal investigation, information relating council prior to the expiration of the 2-year Labor, and Pensions. to studies that are being carried out in the period beginning on the date on which the Mr. INOUYE. Mr. President, on be- United States or any other country and, with prior term expired. half of our Nation’s clinical social the approval of the Director of the Center, ‘‘(3) VACANCY.—If a vacancy occurs on the workers, I am introducing legislation make such information available through advisory council among the members under to amend the Public Health Service appropriate publications; and subsection (b)(3), the Secretary shall make Act. This legislation would (1) estab- ‘‘(C) may appoint subcommittees and con- an appointment to fill that vacancy not later vene workshops and conferences. than 90 days after the date on which the va- lish a new social work training pro- ‘‘(b) MEMBERSHIP.— cancy occurs. gram, (2) ensure that social work stu- ‘‘(1) IN GENERAL.—The advisory council ‘‘(d) CHAIRPERSON.—The chairperson of the dents are eligible for support under the shall be composed of the ex officio members advisory council shall be selected by the Sec- Health Careers Opportunity Program, described in paragraph (2) and not more than retary from among the members appointed (3) provide social work schools with eli- 18 individuals to be appointed by the Sec- under subsection (b)(3), except that the Sec- gibility for support under the Minority retary under paragraph (3). retary may select the Director of the Center Centers of Excellence programs, (4) ‘‘(2) EX OFFICIO MEMBERS.—The ex officio to be the chairperson of the advisory council. permit schools offering degrees in so- members of the advisory council shall in- The term of office of the chairperson shall be clude— 2 years. cial work to obtain grants for training ‘‘(A) the Secretary of Health and Human ‘‘(e) MEETINGS.—The advisory council shall projects in geriatrics, and (5) ensure Services, the Director of NIH, the Director of meet at the call of the chairperson or upon that social work is recognized as a pro- the Center, the Chief Social Work Officer of the request of the Director of the Center, but fession under the Public Health Main- the Veterans’ Administration, the Assistant not less than 3 times each fiscal year. The lo- tenance Organization Act. Secretary of Defense for Health Affairs, the cation of the meetings of the advisory coun- Despite the impressive range of serv- Associate Director of Prevention Research at cil shall be subject to the approval of the Di- ices social workers provide to people of the National Institute of Mental Health, the rector of the Center. this Nation, few Federal programs Director of the Division of Epidemiology and ‘‘(f) ADMINISTRATIVE PROVISIONS.—The Di- exist to provide opportunities for social Services Research, the Assistant Secretary rector of the Center shall designate a mem- of Health and Human Services for the Ad- ber of the staff of the Center to serve as the work training in health and mental ministration for Children and Families, the executive secretary of the advisory council. health care. Assistant Secretary of Education for the Of- The Director of the Center shall make avail- Social workers have long provided fice of Educational Research and Improve- able to the advisory council such staff, infor- quality mental health services to our ment, the Assistant Secretary of Housing mation, and other assistance as the council citizens and continue to be at the fore- and Urban Development for Community may require to carry out its functions. The front of establishing innovative pro- Planning and Development, and the Assist- Director of the Center shall provide orienta- grams to serve our disadvantaged popu- ant Attorney General for Office of Justice tion and training for new members of the ad- lations. I believe it is important to en- Programs (or the designees of such officers); visory council to provide such members with sure that the special expertise social and such information and training as may be ap- ‘‘(B) such additional officers or employees propriate for their effective participation in workers possess continues to be avail- of the United States as the Secretary deter- the functions of the advisory council. able to the citizens of this Nation. This mines necessary for the advisory council to ‘‘(g) COMMENTS AND RECOMMENDATIONS.— bill, by providing financial assistance effectively carry out its functions. The advisory council may prepare, for inclu- to schools of social work and social ‘‘(3) APPOINTED MEMBERS.—The Secretary sion in the biennial report under section work students, acknowledges the long shall appoint not to exceed 18 individuals to 485M— history and critical importance of the the advisory council, of which— ‘‘(1) comments with respect to the activi- services provided by social work pro- ‘‘(A) not more than two-thirds of such indi- ties of the advisory council in the fiscal fessionals. I believe it is time to pro- vidual shall be appointed from among the years for which the report is prepared; leading representatives of the health and sci- ‘‘(2) comments on the progress of the Cen- vide them with the recognition they entific disciplines (including public health ter in meeting its objectives; and deserve. and the behavioral or social sciences) rel- ‘‘(3) recommendations with respect to the Mr. President, I ask unanimous con- evant to the activities of the Center, and at future direction and program and policy em- sent that the text of this bill be printed least 7 such individuals shall be professional phasis of the center. in the RECORD.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00152 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S259 There being no objection, the bill was tain, or improve academic administrative While a doctorate in psychology pro- ordered to be printed in the RECORD, as units (which may be departments, divisions, vides broad-based knowledge and mas- follows: or other units) to provide clinical instruc- tery in a wide variety of clinical skills, tion in social work. S. 91 specialized post-doctoral fellowship ‘‘(2) PREFERENCE IN MAKING AWARDS.—In Be it enacted by the Senate and House of Rep- making awards of grants and contracts programs help to develop particular di- resentatives of the United States of America in under paragraph (1), the Secretary shall give agnostic and treatment skills required Congress assembled, preference to any qualified applicant for to respond effectively to underserved SECTION 1. SHORT TITLE. such an award that agrees to expend the populations. For example, what ap- This Act may be cited as the ‘‘Strengthen award for the purpose of— pears to be poor academic motivation Social Work Training Act of 2005’’. ‘‘(A) establishing an academic administra- in a child recently relocated from SEC. 2. SOCIAL WORK STUDENTS. tive unit for programs in social work; or Southeast Asia might actually reflect (a) HEALTH PROFESSIONS SCHOOLS.—Section ‘‘(B) substantially expanding the programs a cultural value of reserve rather than 736(g)(1)(A) of the Public Health Service Act of such a unit. (42 U.S.C. 293(g)(1)(A)) is amended by striking ‘‘(c) DURATION OF AWARD.—The period dur- a disinterest in academic learning. ‘‘graduate program in behavioral or mental ing which payments are made to an entity Specialized assessment skills enable health’’ and inserting ‘‘graduate program in from an award of a grant or contract under the clinician to initiate effective treat- behavioral or mental health, including a subsection (a) may not exceed 5 years. The ment. school offering graduate programs in clinical provision of such payments shall be subject Domestic violence poses a significant social work, or programs in social work’’. to annual approval by the Secretary and sub- public health problem and is not just a (b) SCHOLARSHIPS.—Section 737(d)(1)(A) of ject to the availability of appropriations for problem for the criminal justice sys- the Public Health Service Act (42 U.S.C. the fiscal year involved to make the pay- tem. Violence against women results in 293a(d)(1)(A)) is amended by striking ‘‘men- ments. tal health practice’’ and inserting ‘‘mental ‘‘(d) FUNDING.— thousands of hospitalizations a year. health practice (including graduate pro- ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— Rates of child and spouse abuse in grams in clinical psychology, graduate pro- There are authorized to be appropriated to rural areas are particularly high, as grams in clinical social work, or programs in carry out this section $10,000,000 for each of are the rates of alcohol abuse and de- social work)’’. the fiscal years 2006 through 2008. pression in adolescents. A post-doc- (c) FACULTY POSITIONS.—Section 738(a)(3) ‘‘(2) ALLOCATION.—Of the amounts appro- toral fellowship program in the psy- of the Public Health Service Act (42 U.S.C. priated under paragraph (1) for a fiscal year, chology of the rural populations could 293b(a)(3)) is amended by striking ‘‘offering the Secretary shall make available not less be of special benefit in addressing these graduate programs in behavioral and mental than 20 percent for awards of grants and con- health’’ and inserting ‘‘offering graduate tracts under subsection (b).’’; and problems. programs in behavioral and mental health, (3) in section 770A (as redesignated by Given the demonstrated success and including graduate programs in clinical psy- paragraph (1)) by inserting ‘‘other than sec- effectiveness of specialized training chology, graduate programs in clinical social tion 770,’’ after ‘‘carrying out this subpart,’’. programs, it is incumbent upon us to work, or programs in social work’’. SEC. 5. CLINICAL SOCIAL WORKER SERVICES. encourage participation in post-doc- SEC. 3. GERIATRICS TRAINING PROJECTS. Section 1302 of the Public Health Service toral fellowships that respond to the Section 753(b)(1) of the Public Health Serv- Act (42 U.S.C. 300e–1) is amended— needs of the nation’s underserved. ice Act (42 U.S.C. 294c(b)(1)) is amended by (1) in paragraphs (1) and (2), by inserting Mr. President, I ask unanimous con- inserting ‘‘schools offering degrees in social ‘‘clinical social worker,’’ after ‘‘psycholo- sent that the text of this bill be printed work,’’ after ‘‘teaching hospitals,’’. gist,’’ each place the term appears; in the RECORD. SEC. 4. SOCIAL WORK TRAINING PROGRAM. (2) in paragraph (4)(A), by striking ‘‘and There being no objection, the bill was Subpart 2 of part E of title VII of the Pub- psychologists’’ and inserting ‘‘psychologists, lic Health Service Act (42 U.S.C. 295 et seq.) and clinical social workers’’; and ordered to be printed in the RECORD, as is amended— (3) in paragraph (5), by inserting ‘‘clinical follows: (1) by redesignating section 770 as section social work,’’ after ‘‘psychology,’’. S. 92 770A; Be it enacted by the Senate and House of Rep- (2) by inserting after section 769, the fol- By Mr. INOUYE: resentatives of the United States of America in lowing: S. 92. A bill to amend title VII of the Congress assembled, ‘‘SEC. 770. SOCIAL WORK TRAINING PROGRAM. Public Health Service Act to establish SECTION 1. SHORT TITLE. ‘‘(a) TRAINING GENERALLY.—The Secretary a psychology post-doctoral fellowship This Act may be cited as the ‘‘Psycholo- may make grants to, or enter into contracts program, and for other purposes; to the gists in the Service of the Public Act of with, any public or nonprofit private hos- Committee on Health, Education, 2005’’. pital, any school offering programs in social Labor, and Pensions. SEC. 2. GRANTS FOR FELLOWSHIPS IN PSY- work, or to or with a public or private non- CHOLOGY. profit entity that the Secretary has deter- Mr. INOUYE. Mr. President, I am in- Part C of title VII of the Public Health mined is capable of carrying out such grant troducing legislation today to amend Service Act (42 U.S.C. 293k et seq.) is amend- or contract— Title VII of the Public Health Service ed by adding at the end the following: ‘‘(1) to plan, develop, and operate, or par- Act to establish a psychology post-doc- ‘‘SEC. 749. GRANTS FOR FELLOWSHIPS IN PSY- ticipate in, an approved social work training toral program. Psychologists have CHOLOGY. program (including an approved residency or made a unique contribution in reaching ‘‘(a) IN GENERAL.—The Secretary shall es- internship program) for students, interns, out to the nation’s medically under- tablish a psychology post-doctoral fellowship residents, or practicing physicians; served populations. Expertise in behav- program to make grants to and enter into ‘‘(2) to provide financial assistance (in the contracts with eligible entities to encourage form of traineeships and fellowships) to stu- ioral science is useful in addressing the provision of psychological training and dents, interns, residents, practicing physi- grave concerns such as violence, addic- services in underserved treatment areas. cians, or other individuals, who— tion, mental illness, adolescent and ‘‘(b) ELIGIBLE ENTITIES.— ‘‘(A) are in need of such assistance; child behavioral disorders, and family ‘‘(1) INDIVIDUALS.—In order to receive a ‘‘(B) are participants in any such program; disruption. Establishment of a psy- grant under this section an individual shall and chology post-doctoral program could submit an application to the Secretary at ‘‘(C) plan to specialize or work in the prac- be an effective way to find solutions to such time, in such form, and containing such tice of social work; these issues. information as the Secretary shall require, ‘‘(3) to plan, develop, and operate a pro- including a certification that such indi- gram for the training of individuals who plan Similar programs supporting addi- vidual— to teach in social work training programs; tional, specialized training in tradi- ‘‘(A) has received a doctoral degree and tionally underserved settings have through a graduate program in psychology ‘‘(4) to provide financial assistance (in the been successful in retaining partici- provided by an accredited institution at the form of traineeships and fellowships) to indi- pants to serve the same populations. time such grant is awarded; viduals who are participants in any such pro- For example, mental health profes- ‘‘(B) will provide services to a medically gram and who plan to teach in a social work sionals who have participated in these underserved population during the period of training program. specialized federally funded programs such grant; ‘‘(b) ACADEMIC ADMINISTRATIVE UNITS.— ‘‘(C) will comply with the provisions of ‘‘(1) IN GENERAL.—The Secretary may make have tended not only to meet their re- subsection (c); and grants to or enter into contracts with payment obligations, but have contin- ‘‘(D) will provide any other information or schools offering programs in social work to ued to work in the public sector or assurances as the Secretary determines ap- meet the costs of projects to establish, main- with the underserved. propriate.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00153 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S260 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(2) INSTITUTIONS.—In order to receive a either children or their parents. The the years, I have had the opportunity grant or contract under this section, an in- number of elderly persons requesting to visit numerous Hoosier food banks, stitution shall submit an application to the food assistance has increased by twelve and have been especially impressed by Secretary at such time, in such form, and percent. The success of welfare reform the remarkable work of these organiza- containing such information as the Sec- retary shall require, including a certification legislation has moved many recipients tions. In many cases, they are that such institution— off welfare and into jobs. Over the last partnered with churches and faith- ‘‘(A) is an entity, approved by the State, decade, in many states, welfare roles based organizations and are making a that provides psychological services in medi- have been reduced by more than one tremendous difference in our commu- cally underserved areas or to medically un- half. But we need to recognize that nities. We should support this private derserved populations (including entities these individuals and their families are sector activity, which not only feeds that care for the mentally retarded, mental living on modest wages. As the states’ people, but also strengthens commu- health institutions, and prisons); unemployment rates have risen, so nity bonds and demonstrates the power ‘‘(B) will use amounts provided to such in- have the demands placed on the food stitution under this section to provide finan- of faith, charity, and civic involve- cial assistance in the form of fellowships to banks and soup kitchens. The problem ment. qualified individuals who meet the require- of hunger goes well beyond the unem- Thank you, Mr. President. I yield the ments of subparagraphs (A) through (C) of ployed. The Mayors’ survey points out floor. paragraph (1); that thirty-four percent of people re- ‘‘(C) will not use more than 10 percent of questing food assistance were working. By Mr. LAUTENBERG (for him- amounts provided under this section to pay Due to increases in rent, underemploy- self and Mr. DEWINE): for the administrative costs of any fellow- ment, multigenerational residences, S. 95. A bill to amend titles 23 and 49, ship programs established with such funds; families have to make the tough finan- United States Code, concerning length and cial decisions. As a result, food needs of and weight limitations for vehicles op- ‘‘(D) will provide any other information or erating on Federal-aid highways, and assurances as the Secretary determines ap- families have been pushed further and propriate. further down the priority list. This is for other purposes; to the Committee ‘‘(c) CONTINUED PROVISION OF SERVICES.— coupled with the nutritional value be- on Environment and Public Works. Any individual who receives a grant or fel- coming less important to some families Mr. LAUTENBERG. Today, I am lowship under this section shall certify to because fast food and ‘‘junk’’ food is proud to introduce, along with my col- the Secretary that such individual will con- more economical to those on a tight league Senator DEWINE, legislation tinue to provide the type of services for budget. which will make our roads safer and which such grant or fellowship is awarded for Private food banks provide a key last longer. Our bill, the ‘‘Safe High- not less than 1 year after the term of the ways and Infrastructure Preservation grant or fellowship has expired. safety net against hunger. According ‘‘(d) REGULATIONS.—Not later than 180 days to the 2002 report by U.S. Department Act,’’ will extend the current limited after the date of enactment of this section, of Agriculture, over 13 million children freeze of current truck size and weight the Secretary shall promulgate regulations were hungry or at the risk of being limits set by states, which only applies necessary to carry out this section, includ- hungry. to our 44,000-mile Interstate Highway ing regulations that define the terms ‘medi- America’s Second Harvest, a nation- System, to the entire 156,000-mile Na- cally underserved areas’ and ‘medically un- wide umbrella group of over 200 food tional Highway System (NHS). This ex- derserved populations’. banks and food rescue organization, re- tension will make more roads safer and ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to leased a 2001 report entitled ‘‘Hunger in will further reduce the wear and tear of carry out this section $5,000,000 for each of America’’ stating that 23.3 million peo- our highways and bridges. the fiscal years 2006 through 2008.’’. ple sought and received emergency Fifteen years ago, I got a provision hunger relief from just their network into the ISTEA highway reauthoriza- By Mr. INOUYE: of charitable organizations. That would tion bill to ban triple-trailer trucks S. 93. A bill to increase the role of be the equivalent of the populations of and other so-called ‘‘longer combina- the Secretary of Transportation in ad- New York, Los Angeles, Chicago, Hous- tion vehicles’’ (LCVs) from New Jersey ministering section 901 of the Merchant ton, Philadelphia, San Diego, Phoenix, and most other States. At that time Marine Act, 1936, and for other pur- San Antonio, Dallas, and Detroit com- and ever since, the trucking industry poses; to the Committee on Commerce, bined. In 1997, the USDA estimated has fought to defeat and repeal this Science, and Transportation. that up to 96 billion pounds of food ban, under the guise of arguments for Mr. LUGAR. Mr. President, on behalf goes to waste each year in the United ‘‘states’ rights’’ and ‘‘unfair re-dis- of myself and Senators LEAHY, LIN- States at a cost of an estimated $1 bil- tribution of business to railroads.’’ But COLN, DOLE, and SMITH, I rise today to lion in increased disposal fees paid by these are not rational arguments for introduce the Good Samaritan Hunger municipalities. This is food and fresh allowing larger and heavier trucks as Relief Tax Incentive Act of 2005. This produce that is left unharvested or in well as triple-trailer trucks on our important legislation allows for ex- storage bins, discarded by wholesales, roads. Additionally, the trucking in- panded charitable tax deductions for restaurants, and grocery stores, or re- dustry’s proclaimed hardships have not contributions of food inventory to our duced by the manufacturing or trans- materialized. In fact, the trucking nation’s food banks and would permit portation process. If a small percentage companies have survived the current farmers and businesses of all sizes to of this wasted food could be redirected laws quite well, and trucks have re- take advantage of this tax deduction. to food banks, we could make impor- fined their role in our national freight Demand on food banks has been rising, tant strides in our fight against hun- transportation system. and these tax deductions would be an ger. I believe the enactment of this leg- Anyone who has ever shared the road important step in increasing private islation would be a great incentive in with a large tractor-trailer truck has donations to the non-profit hunger re- redirecting this food from being dis- probably wondered whether the truck lief charities playing a critical role in carded to being distributed to hungry driver is aware of the smaller vehicles meeting America’s nutritional needs. families. around the truck. Anyone who has seen To a certain degree, donations have The Good Samaritan Hunger Relief the third trailer on a triple-trailer not diminished or have even modestly Tax Incentive Act would allow farmers truck swinging around in a ’crack the increased, but most areas surveyed re- and small business owners to take a de- whip’ fashion probably knows that port that donations cannot keep up duction when they donate food to their these trucks are to be avoided. with the growing demand. According to community food bank. Currently this Moving to the use of even larger the U.S. Conference of Mayors and reduction is available to large corpora- trucks is not safe. The U.S. Depart- Sodexho USA ‘‘Hunger and Homeless- tions but not for small businesses. This ment of Transportation has determined ness Survey’’ released in December approach would stimulate private char- that multi-trailer trucks are likely to 2004, requests for emergency food as- itable giving to food banks at the com- be involved in more fatal crashes—11 sistance has increased fourteen per- munity level. Each citizen can make an percent more than today’s single-trail- cent. Fifty-six percent of the people re- important contribution to the fight er trucks. By expanding the limits on questing emergency food assistance are against hunger at a local level. Over triples and other longer combination

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00154 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S261 vehicles to the entire NHS including ported the Medicare bill of 2003 to give nies were in the flu vaccine business. more than 2,000 miles of highway in a voluntary prescription drug benefit Today, only two companies make the New Jersey the Safe Highways and In- to seniors. I have championed the rural vaccine for America, and only one is an frastructure Protection Act will save health care providers, who received America-based company. This is no co- lives and prevent further deterioration some of the greatest benefits of the incidence. High liability costs, tedious of our roads and bridges. Medicare bill. In 1997, I was one of few production, price caps, and the com- The State of New Jersey sees its Republican to vote against the Bal- plicated United States tax code have share of the nation’s truck traffic. And anced Budget Act because of its lack of kept the market bare. we are concerned about recent projec- support for rural hospitals. Back then, In October, President Bush signed tions that show the amount of traffic I made a commitment to not allow our the JOBS bill, which curbed the bil- increasing considerably over the next rural hospitals to be closed, and I am lion-dollar lawsuits that have crippled 10 to 20 years. We are concerned about pleased we finally addressed that im- the flu vaccination industry. By adding these 53-foot, 80,000-pound vehicles on portant issue in the Medicare legisla- flu vaccine to the list of vaccines pro- our highways and the pressure from tion. I also co-sponsored S. 816, the tected by the National Vaccine Injury other states to increase weight and Health Care Access and Rural Equity Compensation Program (VICP), a no- length limitations to allow larger Act, to protect and preserve access of fault alternative must be used for re- trucks to come through our State. This Medicare beneficiaries to health care solving vaccine injury claims. I am en- makes truck safety even more impor- in rural regions. couraged with this progress, but more tant to New Jersey drivers. I am a strong advocate of medical li- can be done to prevent a shortage in Triple-trailers and other LCVs do ability reform and am an original co- the future. more damage to our roads and bridges sponsor of S. 11, the Patients First Act, The FY2005 Omnibus bill provides but don’t come close to paying associ- to protect patients’ access to quality $100 million to the Department of ated maintenance and repair costs. and affordable health care by reducing Health and Human Services (HHS) to Currently, some 37 percent of bridges the effects of excessive liability costs. ensure a year-round flu vaccine produc- in New Jersey are considered struc- There are solutions to alleviate the tion capacity and for the development turally deficient or functionally obso- burden placed on physicians and pa- of rapidly expandable flu vaccine pro- lete. Their average age is 42 years old. tients by excessive medical mal- duction technologies. The Omnibus But the fees, tolls, and gasoline taxes practice lawsuits, and I am committed language also permits HHS to purchase paid by the operator of a 100,000-pound to this vital reform. flu vaccine with these funds, if deemed truck only covers 40 percent of the cost I have also worked with officials necessary. Such costly purchasing is a of the damage that truck does to our from the Center for Medicare and Med- waste of federal dollars that could oth- roads and bridges; taxpayers make up icaid Services to expand access to life- erwise be used for research through the the difference. I believe that motorists saving Implantable Cardiac National Institutes of Health to de- should not have to share the road with Defibrillators. I supported legislation velop faster and safer vaccine produc- these dangerous behemoths and pay for to increase the supply of pancreatic tion technology. My bill strikes the the extra damage they cause. islet cells for research and co-spon- language that allows government pur- In the 108th Congress, the Senate sored a bill to take the abortion pill chasing of the flu vaccine with these passed portions of this legislation in RU–486 off the market in the United funds. the highway reauthorization legisla- States. Optimizing the flu vaccine produc- tion package. I believe that if we act to The Federal Government invests in tion process is imperative. The ever- pass this legislation, we can make a big improving hospitals and healthcare ini- changing nature of the flu virus results difference in the lives of people who tiatives, and I have fought hard to en- in a complicated production process. share our highways with large truck sure that Oklahoma gets its fair share. The dominant strain of the flu virus traffic. Specifically, over the past three years, mutates each year, requiring a dif- I thank my colleague Senator I have helped to secure $5.2 million in ferent vaccine for every flu season. Be- DEWINE for once again joining me in funding for the Oklahoma Medical Re- cause harvesting the flu vaccine cur- sponsoring this important legislation, search Foundation, the Oklahoma rently takes at least six months and and I look forward to working with my State Department of Health planning requires tens of thousands of fertilized colleagues in the Congress to improve initiative for a rural telemedicine sys- eggs susceptible to contamination, this highway safety and increase the re- tem, the INTEGRIS Healthcare Sys- process must begin nearly a year before maining life of our country’s roads and tem, the University of Oklahoma the flu season begins. bridges. Health Sciences Center, the Oklahoma Research should be focused on devel- Mr. President, I ask unanimous con- Center for the Advancement of Science oping new technologies to allow us to sent that the text of the bill be printed and Technology, St. Anthony’s Heart produce more vaccine—in the same in the RECORD. Hospital, the Hillcrest Healthcare Sys- season—when we encounter a shortage. There being no objection, the bill was tem, and the Morton Health Center. For example, a company in Con- ordered to be printed in the RECORD. Mr. President, the unexpected influ- necticut is developing a flu vaccine re- (The bill will be printed in a future enza (flu) vaccine shortage beginning lying on cell lines from silk moths. Re- edition of the RECORD.) last month highlights the need to en- verse genetics technology also holds courage the production of flu vaccine potential that researchers should ex- By Mr. INHOFE: in America. As you know, on October 5, plore. These types of innovative re- S. 96. A bill to target Federal funding 2004, Chiron, a California-based bio- search promise to shave at least one for research and development, to technology company, notified U.S. month off of production time and sig- amend section 1928 of the Social Secu- health officials that its plant in Liver- nificantly reduce cost. rity Act to encourage the production of pool, England had been shut down due Rather than temporarily masking influenza vaccines by eliminating the to vaccine contamination. Almost problems through wasted spending on price cap applicable to the purchase of 50,000 doses of flu vaccine were thrown vaccine surpluses, my bill would ensure such vaccines under contracts entered away, which created a severe shortage that the federal government invests in into by the Secretary of Health and for Americans just as the flu season lasting solutions to the challenges of Human Services, to amend the Internal began. flu vaccine production. The encourage- Revenue Code of 1986 to establish a tax In light of the current shortage, I ment of safer and faster flu vaccine credit to encourage vaccine production have examined why America found production technology is a prudent use capacity, and for other purposes; to the itself unable to accommodate the pub- of federal research dollars through the Committee on Finance. lic demand for the flu vaccine. As we National Institutes of Health. Mr. INHOFE. Mr. President, I have have seen, once a vaccine shortage To invest in these new technologies, long been dedicated to quality strikes, a rapid response is difficult and flu vaccine manufacturers will have to healthcare for my constituents in often impossible. Thirty years ago, renovate existing facilities or con- Oklahoma and across America. I sup- more than a dozen American compa- struct new ones. My bill gives a tax

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00155 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S262 CONGRESSIONAL RECORD — SENATE January 24, 2005 credit to companies, new and old, to as- abuse; to the Committee on the Judici- TITLE I—ENFORCEMENT sist them in this important venture. ary. SEC. 101. AUTHORIZATION OF APPROPRIATIONS Currently, ten American companies Mr. TALENT. Mr. President, I ask RELATING TO COPS GRANTS. produce the forty-seven FDA-approved unanimous consent that the text of the (a) IN GENERAL.—In addition to any other vaccines. An investment tax credit will bill be printed in the RECORD. funds authorized to be appropriated for fiscal encourage these existing companies to There being no objection, the bill was year 2006 for grants under part Q of title I of expand their production to cover the the Omnibus Crime Control and Safe Streets ordered to be printed in the RECORD, as Act of 1968 (42 U.S.C. 3796dd et seq.), com- flu vaccine and will invite start-up follows: monly known as the COPS program, there companies to join the industry. This S. 102 are authorized to be appropriated $15,000,000 will better equip the United States Be it enacted by the Senate and House of Rep- for such purpose to provide training to State market to prevent and deal with a resentatives of the United States of America in and local prosecutors and law enforcement shortage in the future. Congress assembled, agents for the investigation and prosecution Furthermore, my bill removes the SECTION 1. SHORT TITLE. of methamphetamine offenses. suffocating price controls that have This Act may be cited as the ‘‘Exile Meth (b) RURAL SET-ASIDE.—Of amounts made discouraged companies from producing Act’’. available under subsection (a), $3,000,000 shall be available only for prosecutors and the flu vaccine. The Vaccines For Chil- SEC. 2. ESTABLISHMENT OF GRANT PROGRAM dren program (VFC), enacted under the FOR COMBATING METHAMPHET- law enforcement agents for rural commu- nities. Clinton Administration, imposed a AMINE REPEAT OFFENDERS. price cap on all vaccines purchased The Attorney General shall establish a SEC. 102. EXPANSION OF METHAMPHETAMINE program that provides grants to qualified HOT SPOTS PROGRAM TO INCLUDE through federal contracts. From a States for combating the problem of meth- PERSONNEL AND EQUIPMENT FOR shortsighted perspective, these regu- amphetamine abuse, with a specific focus on ENFORCEMENT, PROSECUTION, AND CLEANUP. lated prices may expand access to vac- the prosecution of repeat offenders. Section 1701(d) of the Omnibus Crime Con- cines. However, in the long run this SEC. 3. DEFINITION. policy devastates the vaccine produc- trol and Safe Streets Act of 1968 (42 U.S.C. As used in this Act, the term ‘‘qualified 3796dd(d)) is amended— tion industry and decreases the avail- State’’ means a State that— (1) in paragraph (11) by striking ‘‘and’’ at ability of vaccines. This occurred in (1) had more than 200 methamphetamine the end; 1998 when manufacturers of Tetanus lab seizures in 2004, as reported by the Na- (2) in paragraph (12) by striking the period Diphtheria vaccine refused to bid on tional Clandestine Laboratory Database; and at the end and inserting ‘‘; and’’; and government contracts. Consequently, (2) has a law that provides that a person (3) by adding at the end the following: who possesses or distributes 5 grams or more ‘‘(13) hire personnel and purchase equip- this vaccine is no longer available to of methamphetamine, its salts, isomers, or children through the VFC program. ment to assist in the enforcement and pros- salts of its isomers, or 50 grams or more of a ecution of methamphetamine offenses and Similarly, the CDC purchased nearly mixture or substance containing a detectable 12 percent of the flu vaccine this sea- the cleanup of methamphetamine-affected amount of methamphetamine, its salts, iso- areas.’’. son, and significant quantities were mers, or salts of its isomers, qualifies for a mandatory minimum sentence, without the SEC. 103. SPECIAL UNITED STATES ATTORNEYS’ purchased through the Department of PROGRAM. possibility of probation or parole, of 5 to 40 Defense, the Veteran’s Administration, (a) IN GENERAL.—The Attorney General years for a first offense, 10 years to life for a and Medicare. The price controls im- shall allocate any amounts appropriated pur- second offense, and life for a third offense. posed from federal government pur- suant to the authorization under subsection chasing create a high-risk, low-reward SEC. 4. DISTRIBUTION OF GRANT AMOUNTS. (c) for the hiring and training of special as- business market. Price controls de- The Attorney General shall distribute sistant United States attorneys. grants authorized under this Act to 2 States. stroy any profit incentive. Manufactur- (b) USE OF FUNDS.—The funds allocated ers avoid this artificial environment SEC. 5. ADMINISTRATION. under subsection (a) shall be used to— The Attorney General shall prescribe re- and will continue to as long as the gov- (1) train local prosecutors in techniques quirements, including application require- used to prosecute methamphetamine cases, ernment over steps its bounds. ments, for grants under the program estab- including the presentation of evidence re- The harmful effect of government lished under this Act. lated to the manufacture of methamphet- price controls is especially pronounced SEC. 6. AUTHORIZATION OF APPROPRIATIONS. amine; in the flu vaccine market because the (a) IN GENERAL.—There are authorized to (2) train local prosecutors in Federal and vaccine has a single-season shelf life. be appropriated $10,000,000 for each of the fis- State laws involving methamphetamine The difficulty of predicting the demand cal years 2006 and 2007 to carry out this Act. manufacture or distribution; for vaccines each year exposes compa- (b) AVAILABILITY.—Amounts appropriated (3) cross-designate local prosecutors as spe- nies great risk. A slight drop in de- pursuant to the authorization of appropria- cial assistant United States attorneys; and mand can force them out of the mar- tions in subsection (a) shall remain available (4) hire additional local prosecutors who— ket. Financial losses—from seven mil- until expended. (A) with the approval of the United States attorney, shall be cross-designated to pros- lion extra doses in 2002 and 4.5 million By Mr. TALENT (for himself, Mrs. FEINSTEIN, Mr. BAYH, Mr. NELSON of N By Mr. TALENT (for himself, ecute both Federal and State methamphet- extra in 2003—compelled Wyeth Phar- amine cases; maceutical Company to end its flu vac- Mrs. FEINSTEIN, Mr. BAYH, Mr. (B) shall be assigned a caseload, whether in cine manufacturing. NELSON of Nebraska, Mr. DAY- State court or Federal court, that gives the Scientific experts consider vaccina- TON, Mr. WYDEN, Mr. SALAZAR, highest priority to cases in which— tion to be the most effective medical Mr. HAGEL, Mr. HARKIN, Mr. (i) charges related to methamphetamine intervention, and we live in an age of SMITH, Mr. COLEMAN, and Mr. manufacture or distribution are submitted unprecedented vaccine development GRASSLEY): by law enforcement for consideration; and and implementation. We cannot con- S. 103. A bill to respond to the illegal (ii) the defendant has been previously con- victed of a crime related to methamphet- tinue to over-regulate the flu vaccine production, distribution, and use of methamphetamine in the United amine manufacture or distribution. industry and hope companies will hang (c) AUTHORIZATION OF APPROPRIATIONS.— on and produce vaccines regardless of States, and for other purposes; to the There are authorized to be appropriated profit. The current national flu vaccine Committee on the Judiciary. $5,000,000 for each of the fiscal years 2006 and shortage reveals the need to act. Mr. TALENT. Mr. President, I ask 2007 to carry out the provisions of this sec- My bill would steer NIH research dol- unanimous consent that the text of the tion. lars towards cutting-edge technology, bill be printed in the RECORD. SEC. 104. PSEUDOEPHEDRINE AMENDMENTS TO remove suffocating price controls, and There being no objection, the bill CONTROLLED SUBSTANCES ACT. free American companies to enter the were ordered to be printed in the (a) ADDITION OF PSEUDOEPHEDRINE TO flu vaccine industry with an invest- RECORD, as follows: SCHEDULE V.—Section 202 of the Controlled Substances Act (21 U.S.C. 812) is amended by ment tax credit. I urge my colleagues S. 103 adding at the end the following: to stand with me in supporting this Be it enacted by the Senate and House of Rep- ‘‘(6) Any detectable quantity of vital legislation. resentatives of the United States of America in pseudoephedrine, its salts or optical isomers, Congress assembled, or salts of optical isomers.’’. By Mr. TALENT: SECTION 1. SHORT TITLE. (b) PRESCRIPTIONS.—Section 309(c) of the S. 102. A bill to provide grants to This Act may be cited as the ‘‘Combat Controlled Substances Act (21 U.S.C. 829(c)) States to combat methamphetamine Meth Act of 2005’’. is amended—

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METHAMPHETAMINE RESEARCH, amphetamine precursor purchases; or otherwise acquire more than 9 grams of TRAINING, AND TECHNICAL ASSIST- (2) expand existing methamphetamine pre- the substance described in paragraph (6) of ANCE CENTER. cursor or prescription drug monitoring pro- Schedule V of section 202 within any 30-day ‘‘(a) PROGRAM AUTHORIZED.—The Sec- grams to accomplish the purposes described period. retary, acting through the Administrator, in subsection (b); ‘‘(B) The limit described in subparagraph and in consultation with the Director of the (3) pay for training and technical assist- (A) shall not apply to any quantity of such National Institutes of Health, shall award ance for law enforcement personnel and em- substance dispensed under a valid prescrip- grants to, or enter into contracts with, pub- tion. ployees of businesses that lawfully sell sub- ‘‘(4)(A) The Director of the Federal Drug lic or private, nonprofit entities to establish stances, which may be used as methamphet- Administration, by rule, may exempt a prod- a research, training, and technical assistance amine precursors; uct from Schedule V of section 202 if the Di- center to carry out the activities described (4) improve information sharing between rector determines that the produce is not in subsection (d). adjacent States through enhanced used in the illegal manufacture of meth- ‘‘(b) APPLICATION.—A public or private, connectivity; or amphetamine or other controlled dangerous nonprofit entity seeking a grant or contract (5) make grants to subdivisions of the substance. under subsection (a) shall submit an applica- State to implement methamphetamine pre- ‘‘(B) The Director of the Federal Drug Ad- tion to the Secretary at such time, in such cursor monitoring programs. ministration, upon the application of a man- manner, and containing such information as (d) APPLICATION.—Any State seeking a ufacturer of a drug product, may exempt the the Secretary may require. grant under this section shall submit an ap- product from Schedule V of section 202 if the ‘‘(c) CONDITION.—In awarding grants or en- plication to the Attorney General at such Director determines that the product has tering into contracts under subsection (a), time, in such manner, and containing such been formulated in such a way as to effec- the Secretary shall ensure that not less than information as the Attorney General may re- tively prevent the conversion of the active 1 of the centers will focus on methamphet- quire. ingredient into methamphetamine. amine abuse in rural areas. (e) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(C) The Director of the Federal Drug Ad- ‘‘(d) AUTHORIZED ACTIVITIES.—Each center There are authorized to be appropriated ministration, by rule, may authorize the sale established under this section shall— $5,000,000 for each of the fiscal years 2006 and of the substance described in paragraph (6) of ‘‘(1) engage in research and evaluation of 2007 to carry out the provisions of this sec- Schedule V of section 202 by persons other the effectiveness of treatment modalities for tion. than licensed pharmacists or licensed phar- the treatment of methamphetamine abuse; macy technicians if— ‘‘(2) disseminate information to public and By Mr. TALENT (for himself, Mr. ‘‘(i) the Director finds evidence that the private entities on effective treatments for WYDEN, Mr. COLEMAN, and Mr. absence of a pharmacy creates a hardship for methamphetamine abuse; CORZINE): a community; and ‘‘(3) provide direct technical assistance to S. 104. A bill to amend the Internal ‘‘(ii) the authorized personnel follow the States, political subdivisions of States, and Revenue Code of 1986 to provide tax-ex- procedure set forth in this Act’’. private entities on how to improve the treat- empt financing of highway projects and TITLE II—EDUCATION, PREVENTION, AND ment of methamphetamine abuse; and rail-truck transfer facilities; to the TREATMENT ‘‘(4) provide training on the effects of methamphetamine use and on effective ways Committee on Finance. SEC. 201. GRANTS FOR SERVICES FOR CHILDREN Mr. TALENT. Mr. President, I ask OF SUBSTANCE ABUSERS. of treating methamphetamine abuse to sub- Section 519 of the Public Health Service stance abuse treatment professionals and unanimous consent that the text of the Act (42 U.S.C. 290bb–25) is amended— community leaders. bill be printed in the RECORD. (1) in subsection (b), by inserting after ‘‘(e) REPORTS.—Each grantee or contractor There being no objection, the bill was paragraph (8) the following: under this section shall annually submit a ordered to be printed in the RECORD, as ‘‘(9) Development of drug endangered chil- report to the Administrator that contains— follows: dren rapid response teams that will inter- ‘‘(1) a description of the previous year’s ac- S. 104 vene on behalf of children exposed to meth- tivities of the center established under this Be it enacted by the Senate and House of Rep- amphetamine as a result of residing or being section; resentatives of the United States of America in present in a home-based clandestine drug ‘‘(2) effective treatment modalities under- Congress assembled, taken by the center; and laboratory.’’; and SECTION 1. TAX-EXEMPT FINANCING OF HIGH- (2) in subsection (o)— ‘‘(3) evidence to demonstrate that such WAY PROJECTS AND RAIL-TRUCK (A) by striking ‘‘For the purpose’’ and in- treatment modalities were successful. TRANSFER FACILITIES. serting the following: ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— (a) TREATMENT AS EXEMPT FACILITY ‘‘(1) IN GENERAL.—For the purpose’’; and There are authorized to be appropriated to BOND.—Subsection (a) of section 142 of the (B) by adding at the end the following: carry out this section $3,000,000 for fiscal Internal Revenue Code of 1986 (relating to ex- ‘‘(2) DRUG ENDANGERED CHILDREN RAPID RE- year 2006 and such sums as may be necessary empt facility bond) is amended by striking SPONSE TEAMS.—There are authorized to be for each of fiscal years 2007 and 2008.’’. ‘‘or’’ at the end of paragraph (13), by striking appropriated $2,500,000 for each of the fiscal SEC. 203. METHAMPHETAMINE PRECURSOR MON- the period at the end of paragraph (14), and years 2006 and 2007 to carry out the provi- ITORING GRANTS. by adding at the end the following: sions of subsection (b)(9).’’. (a) GRANTS AUTHORIZED.—The Attorney ‘‘(15) qualified highway facilities, or SEC. 202. LOCAL GRANTS FOR TREATMENT OF General, acting through the Bureau of Jus- ‘‘(16) qualified surface freight transfer fa- METHAMPHETAMINE ABUSE AND tice Assistance, may award grants to States cilities.’’. RELATED CONDITIONS. to establish methamphetamine precursor (b) QUALIFIED HIGHWAY FACILITIES AND Subpart 1 of part B of title V of the Public monitoring programs. QUALIFIED SURFACE FREIGHT TRANSFER FA- Health Service Act (42 U.S.C. 290bb et seq.) is (b) PURPOSE.—The purpose of the grant CILITIES.—Section 142 of the Internal Rev- amended— program established under this section is enue Code of 1986 is amended by adding at (1) by redesignating the section 514 that re- to— the end the following: lates to methamphetamine and appears after (1) prevent the sale of methamphetamine ‘‘(m) QUALIFIED HIGHWAY AND SURFACE section 514A as section 514B; precursors, such as pseudoephedrine, to indi- FREIGHT TRANSFER FACILITIES.—

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‘‘(1) QUALIFIED HIGHWAY FACILITIES.—For Sec. 104. Supplemental grant for population Sec. 404. Elimination of limitation on num- purposes of subsection (a)(15), the term increases in certain States. ber of waivers that may be ‘qualified highway facilities’ means— Sec. 105. Bonus to reward employment granted to a single State for ‘‘(A) any surface transportation project achievement. demonstration projects. which receives Federal assistance under title Sec. 106. Contingency fund. Sec. 405. Streamlined process for consider- 23, United States Code (as in effect on the Sec. 107. Use of funds. ation of amendments to and ex- date of the enactment of this subsection), or Sec. 108. Repeal of Federal loan for State tensions of demonstration ‘‘(B) any project for an international welfare programs. projects requiring waivers. bridge or tunnel for which an international Sec. 109. Universal engagement and family Sec. 406. Availability of reports. entity authorized under Federal or State law self-sufficiency plan require- Sec. 407. Technical correction. is responsible and which receives Federal as- ments. TITLE V—SUPPLEMENTAL SECURITY sistance under such title 23. Sec. 110. Work participation requirements. INCOME ‘‘(2) QUALIFIED SURFACE FREIGHT TRANSFER Sec. 111. Maintenance of effort. Sec. 501. Review of State agency blindness FACILITIES.—For purposes of subsection Sec. 112. Performance improvement. and disability determinations. (a)(16), the term ‘qualified surface freight Sec. 113. Data collection and reporting. TITLE VI—STATE AND LOCAL transfer facilities’ means facilities for the Sec. 114. Direct funding and administration FLEXIBILITY transfer of freight from truck to rail or rail by Indian tribes. to truck (including any temporary storage Sec. 115. Research, evaluations, and national Sec. 601. Program coordination demonstra- facilities directly related to such transfers) studies. tion projects. which receives Federal assistance under ei- Sec. 116. Studies by the Census Bureau and Sec. 602. State food assistance block grant ther title 23 or title 49, United States Code the Government Accountability demonstration project. (as in effect on the date of the enactment of Office. TITLE VII—ABSTINENCE EDUCATION this subsection). Sec. 117. Definition of assistance. Sec. 701. Extension of abstinence education ‘‘(3) AGGREGATE FACE AMOUNT OF TAX-EX- Sec. 118. Technical corrections. program. Sec. 119. Fatherhood program. EMPT FINANCING FOR FACILITIES.— TITLE VIII—TRANSITIONAL MEDICAL Sec. 120. State option to make TANF pro- ‘‘(A) IN GENERAL.—An issue shall not be ASSISTANCE treated as an issue described in subsection grams mandatory partners with Sec. 801. Extension of medicaid transitional (a)(15) or (a)(16) if the aggregate face amount one-stop employment training medical assistance program of bonds issued by any State pursuant there- centers. through fiscal year 2006. to (when added to the aggregate face amount Sec. 121. Sense of the Congress. Sec. 802. Adjustment to payments for med- of bonds previously so issued) exceeds Sec. 122. Extension through fiscal year 2005. icaid administrative costs to $15,000,000,000. TITLE II—CHILD CARE prevent duplicative payments ‘‘(B) ALLOCATION BY SECRETARY OF TRANS- Sec. 201. Short title. and to fund extension of transi- PORTATION.—The Secretary of Transpor- Sec. 202. Goals. tional medical assistance. tation shall allocate the amount described in Sec. 203. Authorization of appropriations. TITLE IX—EFFECTIVE DATE subparagraph (A) among eligible projects de- Sec. 204. Application and plan. scribed in subsections (a)(15) and (a)(16) in Sec. 205. Activities to improve the quality of Sec. 901. Effective date. such manner as the Secretary determines ap- child care. SEC. 3. REFERENCES. propriate.’’. Sec. 206. Report by Secretary. Except as otherwise expressly provided, (c) EXEMPTION FROM GENERAL STATE VOL- Sec. 207. Definitions. wherever in this Act an amendment or repeal UME CAPS.—Paragraph (3) of section 146(g) of Sec. 208. Entitlement funding. is expressed in terms of an amendment to, or the Internal Revenue Code of 1986 (relating TITLE III—CHILD SUPPORT repeal of, a section or other provision, the to exception for certain bonds) is amended amendment or repeal shall be considered to by striking ‘‘or (14)’’ and all that follows Sec. 301. Federal matching funds for limited be made to a section or other provision of through the end of the paragraph and insert- pass through of child support the Social Security Act. payments to families receiving ing ‘‘(14), (15), or (16) of section 142(a), and’’. SEC. 4. FINDINGS. TANF. (d) EFFECTIVE DATE.—The amendments The Congress makes the following findings: Sec. 302. State option to pass through all made by this section shall apply to bonds (1) The Temporary Assistance for Needy child support payments to fam- issued after the date of the enactment of this Families (TANF) Program established by the ilies that formerly received Act. Personal Responsibility and Work Oppor- TANF. tunity Reconciliation Act of 1996 (Public Sec. 303. Mandatory review and adjustment By Mr. TALENT (for himself, Mr. Law 104–193) has succeeded in moving fami- of child support orders for fami- SESSIONS, and Mr. DEMINT): lies from welfare to work and reducing child lies receiving TANF. S. 105. A bill to reauthorize and im- poverty. Sec. 304. Mandatory fee for successful child prove the program of block grants to (A) There has been a dramatic increase in support collection for family the employment of current and former wel- States for temporary assistance for that has never received TANF. fare recipients. The percentage of working needy families, improve access to qual- Sec. 305. Report on undistributed child sup- recipients reached an all-time high in fiscal ity child care, and for other purposes; port payments. year 1999 and continued steady in fiscal to the Committee on Finance. Sec. 306. Decrease in amount of child sup- years 2000 and 2001. In fiscal year 2003, 31.3 Mr. TALENT. Mr. President, I ask port arrearage triggering pass- percent of adult recipients were counted as port denial. unanimous consent that the text of the meeting the work participation require- Sec. 307. Use of tax refund intercept pro- bill be printed in the RECORD. ments. All States but one met the overall gram to collect past-due child There being no objection, the bill was participation rate standard in fiscal year support on behalf of children ordered to be printed in the RECORD, as 2003, as did the District of Columbia and who are not minors. Puerto Rico. follows: Sec. 308. Garnishment of compensation paid (B) Earnings for welfare recipients remain- S. 105 to veterans for service-con- ing on the rolls have also increased signifi- Be it enacted by the Senate and House of Rep- nected disabilities in order to cantly, as have earnings for female-headed resentatives of the United States of America in enforce child support obliga- households. The increases have been particu- Congress assembled, tions. larly large for the bottom 2 income quintiles, Sec. 309. Improving Federal debt collection SECTION 1. SHORT TITLE. that is, those women who are most likely to This Act may be cited as the ‘‘Personal Re- practices. be former or present welfare recipients. sponsibility, Work, and Family Promotion Sec. 310. Maintenance of technical assist- (C) Welfare dependency has plummeted. As Act of 2005’’. ance funding. of June 2004, 1,969,909 families and 4,727,291 Sec. 311. Maintenance of Federal Parent Lo- SEC. 2. TABLE OF CONTENTS. individuals were receiving assistance. Ac- cator Service funding. The table of contents of this Act is as fol- cordingly, the number of families in the wel- lows: TITLE IV—CHILD WELFARE fare caseload and the number of individuals Sec. 1. Short title. Sec. 401. Extension of authority to approve receiving cash assistance declined 55 percent Sec. 2. Table of contents. demonstration projects. and 61 percent, respectively, since the enact- Sec. 3. References. Sec. 402. Elimination of limitation on num- ment of TANF. Sec. 4. Findings. ber of waivers. (D) The child poverty rate continued to de- TITLE I—TANF Sec. 403. Elimination of limitation on num- cline between 1996 and 2003, falling 14 percent Sec. 101. Purposes. ber of States that may be from 20.5 to 17.6 percent. Child poverty rates Sec. 102. Family assistance grants. granted waivers to conduct for African-American and Hispanic children Sec. 103. Promotion of family formation and demonstration projects on same have also fallen dramatically during the past healthy marriage. topic. 7 years.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00158 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S265 (2) As a Nation, we have made substantial necessary to continue to build on the success (1) by striking ‘‘1996, 1997, 1998, 1999, 2000, progress in reducing teen pregnancies and of welfare reform. 2001, 2002, and 2003’’ and inserting ‘‘2006 births, slowing increases in nonmarital (A) Significant numbers of welfare recipi- through 2010’’; and childbearing, and improving child support ents still are not engaged in employment-re- (2) by inserting ‘‘payable to the State for collections and paternity establishment. lated activities. While all States have met the fiscal year’’ before the period. (A) The birth rate to teenagers declined 30 the overall work participation rates required (b) STATE FAMILY ASSISTANCE GRANT.— percent from its high in 1991 to 2002. The 2002 by law, in an average month, only 41 percent Section 403(a)(1)(C) (42 U.S.C. 603(a)(1)(C)) is teenage birth rate of 43.0 per 1,000 women of all families with an adult participated in amended by striking ‘‘fiscal year 2003’’ and aged 15–19 is the lowest recorded birth rate work activities that were countable toward inserting ‘‘each of fiscal years 2006 through for teenagers. the State’s participation rate. In fiscal year 2010’’. (B) During the period from 1991 through 2003, four jurisdictions failed to meet the (c) MATCHING GRANTS FOR THE TERRI- TORIES.—Section 1108(b)(2) (42 U.S.C. 2001, teenage birth rates fell in all States and more rigorous 2-parent work requirements, 1308(b)(2)) is amended by striking ‘‘1997 the District of Columbia, Puerto Rico, and 25 jurisdictions (States and territories) through 2003’’ and inserting ‘‘2006 through Guam, and the Virgin Islands. Declines also are not subject to the 2-parent requirements, 2010’’. have spanned age, racial, and ethnic groups. most because they moved their 2-parent SEC. 103. PROMOTION OF FAMILY FORMATION There has been success in lowering the birth cases to separate State programs where they are not subject to a penalty for failing the 2- AND HEALTHY MARRIAGE. rate for both younger and older teens. The (a) STATE PLANS.—Section 402(a)(1)(A) (42 birth rate for those 15–17 years of age has de- parent rates. (B) In 2002, 34 percent of all births in the U.S.C. 602(a)(1)(A)) is amended by adding at clined 40 percent since 1991, and the rate for the end the following: those 18 and 19 has declined 23 percent. The U.S. were to unmarried women. And, with fewer teens entering marriage, the propor- ‘‘(vii) Encourage equitable treatment of rate for African American teens—until re- married, 2-parent families under the pro- cently the highest—has declined the most— tion of births to unmarried teens has in- creased dramatically (80 percent in 2002 gram referred to in clause (i).’’. 42 percent from 1991 through 2002. (b) HEALTHY MARRIAGE PROMOTION GRANTS; versus 30 percent in 1970). The negative con- (C) Since the enactment of the Personal REPEAL OF BONUS FOR REDUCTION OF ILLEGIT- sequences of out-of-wedlock birth on the Responsibility and Work Opportunity Rec- IMACY RATIO.— mother, the child, the family, and society onciliation Act of 1996, child support collec- (1) IN GENERAL.—Section 403(a)(2) (42 U.S.C. are well documented. These include in- tions within the child support enforcement 603(a)(2)) is amended to read as follows: creased likelihood of welfare dependency, in- system have grown every year, increasing ‘‘(2) HEALTHY MARRIAGE PROMOTION creased risks of low birth weight, poor cog- from $12,000,000,000 in fiscal year 1996 to over GRANTS.— nitive development, child abuse and neglect, $21,000,000,000 in fiscal year 2003. The number ‘‘(A) AUTHORITY.—The Secretary shall and teen parenthood, and decreased likeli- of paternities established or acknowledged in award competitive grants to States, terri- hood of having an intact marriage during fiscal year 2003 (over 1,500,000) includes a tories, and tribal organizations for not more adulthood. more than 100 percent increase through in- than 50 percent of the cost of developing and (C) There has been a dramatic rise in co- hospital acknowledgement programs—862,043 implementing innovative programs to pro- habitation as marriages have declined. It is in 2003 compared to 324,652 in 1996. Child sup- mote and support healthy, married, 2-parent estimated that 40 percent of children are ex- port collections were made in nearly 8,000,000 families. pected to live in a cohabiting-parent family cases in fiscal year 2003, significantly more ‘‘(B) HEALTHY MARRIAGE PROMOTION ACTIVI- at some point during their childhood. Chil- than the almost 4,000,000 cases having a col- TIES.—Funds provided under subparagraph dren in single-parent households and cohab- lection in 1996. (A) shall be used to support any of the fol- iting-parent households are at much higher (3) The Personal Responsibility and Work lowing programs or activities: risk of child abuse than children in intact Opportunity Reconciliation Act of 1996 gave ‘‘(i) Public advertising campaigns on the married families. States great flexibility in the use of Federal value of marriage and the skills needed to in- (D) Children who live apart from their bio- funds to develop innovative programs to help crease marital stability and health. logical fathers, on average, are more likely families leave welfare and begin employment ‘‘(ii) Education in high schools on the to be poor, experience educational, health, and to encourage the formation of 2-parent value of marriage, relationship skills, and emotional, and psychological problems, be families. budgeting. victims of child abuse, engage in criminal (A) Total Federal and State TANF expendi- ‘‘(iii) Marriage education, marriage skills, behavior, and become involved with the juve- tures in fiscal year 2003 were $26,300,000,000, and relationship skills programs, that may nile justice system than their peers who live up from $25,400,000,000 in fiscal year 2002 and include parenting skills, financial manage- with their married, biological mother and fa- $22,600,000,000 in fiscal year 1999. This in- ment, conflict resolution, and job and career ther. A child living with a single mother is creased spending is attributable to signifi- advancement, for non-married pregnant nearly 5 times as likely to be poor as a child cant new investments in supportive services women and non-married expectant fathers. living in a married-couple family. In 2003, in in the TANF program, such as child care and ‘‘(iv) Pre-marital education and marriage married-couple families, the child poverty activities to support work. skills training for engaged couples and for rate was 8.6 percent, and in households head- (B) Since the welfare reform effort began couples or individuals interested in mar- ed by a single mother the poverty rate was there has been a dramatic increase in work riage. 41.7 percent. participation (including employment, com- ‘‘(v) Marriage enhancement and marriage (5) Therefore, it is the sense of the Con- munity service, and work experience) among skills training programs for married couples. gress that increasing success in moving fam- welfare recipients, as well as an unprece- ‘‘(vi) Divorce reduction programs that ilies from welfare to work, as well as in pro- dented reduction in the caseload because re- teach relationship skills. moting healthy marriage and other means of cipients have left welfare for work. ‘‘(vii) Marriage mentoring programs which improving child well-being, are very impor- (C) States are making policy choices and use married couples as role models and men- tant Government interests and the policy investment decisions best suited to the needs tors in at-risk communities. contained in part A of title IV of the Social of their citizens. ‘‘(viii) Programs to reduce the disincen- Security Act (as amended by this Act) is in- (i) To expand aid to working families, al- tives to marriage in means-tested aid pro- tended to serve those ends. most all States disregard a portion of a fam- grams, if offered in conjunction with any ac- ily’s earned income when determining ben- TITLE I—TANF tivity described in this subparagraph. efit levels. SEC. 101. PURPOSES. ‘‘(C) APPROPRIATION.— (ii) Most States increased the limits on Section 401(a) (42 U.S.C. 601(a)) is amend- ‘‘(i) IN GENERAL.—Out of any money in the countable assets above the former Aid to ed— Treasury of the United States not otherwise Families with Dependent Children (AFDC) (1) in the matter preceding paragraph (1), appropriated, there are appropriated for each program. Every State has increased the vehi- by striking ‘‘increase’’ and inserting ‘‘im- of fiscal years 2005 through 2010 $100,000,000 cle asset level above the prior AFDC limit prove child well-being by increasing’’; for grants under this paragraph. for a family’s primary automobile. (2) in paragraph (1), by inserting ‘‘and serv- ‘‘(ii) EXTENDED AVAILABILITY OF FY2005 (iii) States are experimenting with pro- ices’’ after ‘‘assistance’’; FUNDS.—Funds appropriated under clause (i) grams to promote marriage and paternal in- (3) in paragraph (2), by striking ‘‘parents for fiscal year 2005 shall remain available to volvement. Over half of the States have on government benefits’’ and inserting ‘‘fam- the Secretary through fiscal year 2006, for eliminated restrictions on 2-parent families. ilies on government benefits and reduce pov- grants under this paragraph for fiscal year Many States use TANF, child support, or erty’’; and 2005.’’. State funds to support community-based ac- (4) in paragraph (4), by striking ‘‘two-par- (2) EFFECTIVE DATE.—The amendment tivities to help fathers become more in- ent families’’ and inserting ‘‘healthy, 2-par- made by paragraph (1) shall take effect on volved in their children’s lives or strengthen ent married families, and encourage respon- the date of the enactment of this Act. relationships between mothers and fathers. sible fatherhood’’. (c) COUNTING OF SPENDING ON NON-ELIGIBLE (4) However, despite this success, there is SEC. 102. FAMILY ASSISTANCE GRANTS. FAMILIES TO PREVENT AND REDUCE INCIDENCE still progress to be made. Policies that sup- (a) EXTENSION OF AUTHORITY.—Section OF OUT-OF-WEDLOCK BIRTHS, ENCOURAGE port and promote more work, strengthen 403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is amend- FORMATION AND MAINTENANCE OF HEALTHY, 2- families, and enhance State flexibility are ed— PARENT MARRIED FAMILIES, OR ENCOURAGE

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RESPONSIBLE FATHERHOOD.—Section ‘‘(D) DETERMINATION OF STATE PERFORM- (3) by amending subparagraph (B)(ii)(I) to 409(a)(7)(B)(i) (42 U.S.C. 609(a)(7)(B)(i)) is ANCE.—For each bonus year, the Secretary read as follows: amended by adding at the end the following: shall— ‘‘(I) the qualified State expenditures (as ‘‘(V) COUNTING OF SPENDING ON NON-ELIGI- ‘‘(i) use the formula developed under sub- defined in section 409(a)(7)(B)(i)) for the fis- BLE FAMILIES TO PREVENT AND REDUCE INCI- paragraph (C) to determine the performance cal year; plus’’; and DENCE OF OUT-OF-WEDLOCK BIRTHS, ENCOURAGE of each eligible State for the fiscal year that (4) by striking subparagraph (C). FORMATION AND MAINTENANCE OF HEALTHY, 2- precedes the bonus year; and (e) CONSIDERATION OF CERTAIN CHILD CARE PARENT MARRIED FAMILIES, OR ENCOURAGE RE- ‘‘(ii) prescribe performance standards in EXPENDITURES IN DETERMINING STATE COM- SPONSIBLE FATHERHOOD.—The term ‘qualified such a manner so as to ensure that— PLIANCE WITH CONTINGENCY FUND MAINTE- State expenditures’ includes the total ex- ‘‘(I) the average annual total amount of NANCE OF EFFORT REQUIREMENT.—Section penditures by the State during the fiscal grants to be made under this paragraph for 409(a)(10) (42 U.S.C. 609(a)(10)) is amended— year under all State programs for a purpose each bonus year equals $100,000,000; and (1) by striking ‘‘(other than the expendi- described in paragraph (3) or (4) of section ‘‘(II) the total amount of grants to be made tures described in subclause (I)(bb) of that 401(a).’’. under this paragraph for all bonus years paragraph)) under the State program funded SEC. 104. SUPPLEMENTAL GRANT FOR POPU- equals $600,000,000. under this part’’ and inserting a close paren- LATION INCREASES IN CERTAIN ‘‘(E) DEFINITIONS.—In this paragraph: thesis; and STATES. ‘‘(i) BONUS YEAR.—The term ‘bonus year’ (2) by striking ‘‘excluding any amount ex- Section 403(a)(3) (42 U.S.C. 603(a)(3)) is means each of fiscal years 2006 through 2011. amended— pended by the State for child care under sub- ‘‘(ii) EMPLOYMENT ACHIEVEMENT STATE.— (1) in subparagraph (E)— section (g) or (i) of section 402 (as in effect The term ‘employment achievement State’ (A) by striking ‘‘1998, 1999, 2000, and 2001’’ during fiscal year 1994) for fiscal year 1994,’’. means, with respect to a bonus year, an eli- and inserting ‘‘2006 through 2009’’; and SEC. 107. USE OF FUNDS. gible State whose performance determined (B) by striking ‘‘, in a total amount not to pursuant to subparagraph (D)(i) for the fiscal (a) GENERAL RULES.—Section 404(a)(2) (42 exceed $800,000,000’’; year preceding the bonus year equals or ex- U.S.C. 604(a)(2)) is amended by striking ‘‘in (2) in subparagraph (G), by striking ‘‘2001’’ ceeds the performance standards prescribed any manner that’’ and inserting ‘‘for any and inserting ‘‘2009’’; and under subparagraph (D)(ii) for such preceding purposes or activities for which’’. (3) by striking subparagraph (H) and in- fiscal year. (b) TREATMENT OF INTERSTATE IMMI- serting the following: ‘‘(F) APPROPRIATION.— GRANTS.— ‘‘(H) FURTHER PRESERVATION OF GRANT ‘‘(i) IN GENERAL.—Out of any money in the (1) STATE PLAN PROVISION.—Section AMOUNTS.—A State that was a qualifying 402(a)(1)(B) (42 U.S.C. 602(a)(1)(B)) is amended State under this paragraph for fiscal year Treasury of the United States not otherwise by striking clause (i) and redesignating 2004 or any prior fiscal year shall be entitled appropriated, there are appropriated for fis- to receive from the Secretary for each of fis- cal years 2006 through 2011 $600,000,000 for clauses (ii) through (iv) as clauses (i) cal years 2006 through 2009 a grant in an grants under this paragraph. through (iii), respectively. amount equal to the amount required to be ‘‘(ii) EXTENDED AVAILABILITY OF PRIOR AP- (2) USE OF FUNDS.—Section 404 (42 U.S.C. paid to the State under this paragraph for PROPRIATION.—Amounts appropriated under 604) is amended by striking subsection (c). the most recent fiscal year for which the section 403(a)(4)(F) of the Social Security (c) INCREASE IN AMOUNT TRANSFERABLE TO State was a qualifying State.’’. Act (as in effect before the date of the enact- CHILD CARE.—Section 404(d)(1) (42 U.S.C. ment of this clause) that have not been ex- SEC. 105. BONUS TO REWARD EMPLOYMENT 604(d)(1)) is amended by striking ‘‘30’’ and in- ACHIEVEMENT. pended as of such date of enactment shall re- serting ‘‘50’’. (a) IN GENERAL.—Section 403(a)(4) (42 main available through fiscal year 2006 for (d) INCREASE IN AMOUNT TRANSFERABLE TO U.S.C. 603(a)(4)) is amended— grants under section 403(a)(4) of such Act (as TITLE XX PROGRAMS.—Section 404(d)(2)(B) (42 (1) in the paragraph heading, by striking in effect before such date of enactment) for U.S.C. 604(d)(2)(B)) is amended to read as fol- ‘‘HIGH PERFORMANCE STATES’’ and inserting bonus year 2005.[needed?] lows: ‘‘EMPLOYMENT ACHIEVEMENT’’; and ‘‘(G) GRANTS FOR TRIBAL ORGANIZATIONS.— ‘‘(B) APPLICABLE PERCENT.—For purposes of (2) by striking subparagraphs (A) through This paragraph shall apply with respect to subparagraph (A), the applicable percent is (F) and inserting the following: tribal organizations in the same manner in 10 percent for fiscal year 2006 and each suc- ‘‘(A) IN GENERAL.—The Secretary shall which this paragraph applies with respect to ceeding fiscal year.’’. States. In determining the criteria under make a grant pursuant to this paragraph to (e) CLARIFICATION OF AUTHORITY OF STATES which to make grants to tribal organizations each State for each bonus year for which the TO USE TANF FUNDS CARRIED OVER FROM under this paragraph, the Secretary shall State is an employment achievement State. PRIOR YEARS TO PROVIDE TANF BENEFITS consult with tribal organizations.’’. ‘‘(B) AMOUNT OF GRANT.— AND SERVICES.—Section 404(e) (42 U.S.C. (b) EFFECTIVE DATE.—The amendments ‘‘(i) IN GENERAL.—Subject to clause (ii) of 604(e)) is amended to read as follows: this subparagraph, the Secretary shall deter- made by subsection (a) shall take effect on ‘‘(e) AUTHORITY TO CARRYOVER OR RESERVE mine the amount of the grant payable under the date of the enactment of this Act. CERTAIN AMOUNTS FOR BENEFITS OR SERVICES this paragraph to an employment achieve- SEC. 106. CONTINGENCY FUND. OR FOR FUTURE CONTINGENCIES.— ment State for a bonus year, which shall be (a) DEPOSITS INTO FUND.—Section 403(b)(2) ‘‘(1) CARRYOVER.—A State or tribe may use based on the performance of the State as de- (42 U.S.C. 603(b)(2)) is amended— a grant made to the State or tribe under this termined under subparagraph (D)(i) for the (1) by striking ‘‘1997, 1998, 1999, 2000, 2001, part for any fiscal year to provide, without fiscal year that immediately precedes the 2002, and 2003’’ and inserting ‘‘2006 through fiscal year limitation, any benefit or service bonus year. 2010’’; and that may be provided under the State or ‘‘(ii) LIMITATION.—The amount payable to a (2) by striking all that follows tribal program funded under this part. State under this paragraph for a bonus year ‘‘$2,000,000,000’’ and inserting a period. ‘‘(2) CONTINGENCY RESERVE.—A State or shall not exceed 5 percent of the State fam- (b) GRANTS.—Section 403(b)(3)(C)(ii) (42 tribe may designate any portion of a grant ily assistance grant. U.S.C. 603(b)(3)(C)(ii)) is amended by striking made to the State or tribe under this part as ‘‘(C) FORMULA FOR MEASURING STATE PER- ‘‘fiscal years 1997 through 2005’’ and inserting a contingency reserve for future needs, and FORMANCE.— ‘‘fiscal years 2006 through 2010’’. may use any amount so designated to pro- ‘‘(i) IN GENERAL.—Subject to clause (ii), not (c) DEFINITION OF NEEDY STATE.—Clauses vide, without fiscal year limitation, any ben- later than October 1, 2006, the Secretary, in (i) and (ii) of section 403(b)(5)(B) (42 U.S.C. efit or service that may be provided under consultation with the States, shall develop a 603(b)(5)(B)) are amended by inserting after the State or tribal program funded under formula for measuring State performance in ‘‘1996’’ the following: ‘‘, and the Food Stamp this part. If a State or tribe so designates a operating the State program funded under Act of 1977 as in effect during the cor- portion of such a grant, the State shall, on this part so as to achieve the goals of em- responding 3-month period in the fiscal year an annual basis, include in its report under ployment entry, job retention, and increased preceding such most recently concluded 3- section 411(a) the amount so designated.’’. earnings from employment for families re- month period,’’. ceiving assistance under the program, as (d) ANNUAL RECONCILIATION: FEDERAL SEC. 108. REPEAL OF FEDERAL LOAN FOR STATE WELFARE PROGRAMS. measured on an absolute basis and on the MATCHING OF STATE EXPENDITURES ABOVE basis of improvement in State performance. ‘‘MAINTENANCE OF EFFORT’’ LEVEL.—Section (a) REPEAL.—Section 406 (42 U.S.C. 606) is ‘‘(ii) SPECIAL RULE FOR BONUS YEAR 2006.— 403(b)(6) (42 U.S.C. 603(b)(6)) is amended— repealed. For the purposes of awarding a bonus under (1) in subparagraph (A)(ii)— (b) CONFORMING AMENDMENTS.— this paragraph for bonus year 2006, the Sec- (A) by adding ‘‘and’’ at the end of sub- (1) Section 409(a) (42 U.S.C. 609(a)) is retary may measure the performance of a clause (I); amended by striking paragraph (6). State in fiscal year 2005 using the job entry (B) by striking ‘‘; and’’ at the end of sub- (2) Section 412 (42 U.S.C. 612) is amended by rate, job retention rate, and earnings gain clause (II) and inserting a period; and striking subsection (f) and redesignating sub- rate components of the formula developed (C) by striking subclause (III); sections (g) through (i) as subsections (f) under section 403(a)(4)(C) as in effect imme- (2) in subparagraph (B)(i)(II), by striking through (h), respectively. diately before the effective date of this para- all that follows ‘‘section 409(a)(7)(B)(iii))’’ (3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is graph. and inserting a period; amended by striking ‘‘406,’’.

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SEC. 109. UNIVERSAL ENGAGEMENT AND FAMILY SEC. 110. WORK PARTICIPATION REQUIREMENTS. ‘‘(C) NO WORK REQUIREMENT IMPOSED FOR SELF-SUFFICIENCY PLAN REQUIRE- (a) ELIMINATION OF SEPARATE PARTICIPA- FAMILIES WITH AN INFANT.—Nothing in this MENTS. TION RATE REQUIREMENTS FOR 2-PARENT FAM- paragraph shall be construed as requiring a (a) MODIFICATION OF STATE PLAN REQUIRE- ILIES.— State to require a family in which the MENTS.—Section 402(a)(1)(A) (42 U.S.C. (1) Section 407 (42 U.S.C. 607) is amended in youngest child has not attained 12 months of 602(a)(1)(A)) is amended by striking clauses each of subsections (a) and (b) by striking age to engage in work or other activities. ‘‘(b) CALCULATION OF PARTICIPATION (ii) and (iii) and inserting the following: paragraph (2). RATES.— ‘‘(ii) Require a parent or caretaker receiv- (2) Section 407(b)(4) (42 U.S.C. 607(b)(4)) is ‘‘(1) AVERAGE MONTHLY RATE.—For pur- ing assistance under the program to engage amended by striking ‘‘paragraphs (1)(B) and (2)(B)’’ and inserting ‘‘paragraph (1)(B)’’. poses of subsection (a), the participation rate in work or alternative self-sufficiency activi- of a State for a fiscal year is the average of ties (as defined by the State), consistent (3) Section 407(c)(1) (42 U.S.C. 607(c)(1)) is amended by striking subparagraph (B). the participation rates of the State for each with section 407(e)(2). month in the fiscal year. ‘‘(iii) Require families receiving assistance (4) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended by striking ‘‘para- ‘‘(2) MONTHLY PARTICIPATION RATES; INCOR- under the program to engage in activities in PORATION OF 40-HOUR WORK WEEK STANDARD.— accordance with family self-sufficiency plans graphs (1)(B)(i) and (2)(B) of subsection (b)’’ and inserting ‘‘subsection (b)(1)(B)(i)’’. ‘‘(A) IN GENERAL.—For purposes of para- developed pursuant to section 408(b).’’. graph (1), the participation rate of a State (b) WORK PARTICIPATION REQUIREMENTS.— (b) ESTABLISHMENT OF FAMILY SELF-SUFFI- Section 407 (42 U.S.C. 607) is amended by for a month is— CIENCY PLANS.— striking all that precedes subsection (b)(3) ‘‘(i) the total number of countable hours (1) IN GENERAL.—Section 408(b) (42 U.S.C. and inserting the following: (as defined in subsection (c)) with respect to 608(b)) is amended to read as follows: the counted families for the State for the ‘‘SEC. 407. WORK PARTICIPATION REQUIRE- month; divided by MENTS. ‘‘(b) FAMILY SELF-SUFFICIENCY PLANS.— ‘‘(ii) 160 multiplied by the number of ‘‘(1) IN GENERAL.—A State to which a grant ‘‘(a) PARTICIPATION RATE REQUIREMENTS.— counted families for the State for the month. is made under section 403 shall— ‘‘(1) IN GENERAL.—Subject to the suc- ‘‘(B) COUNTED FAMILIES DEFINED.— ‘‘(A) assess, in the manner deemed appro- ceeding provisions of this section, a State to ‘‘(i) IN GENERAL.—In subparagraph (A), the priate by the State, the skills, prior work ex- which a grant is made under section 403 for term ‘counted family’ means, with respect to perience, and employability of each work-eli- a fiscal year shall achieve a minimum par- a State and a month, a family that includes gible individual (as defined in section ticipation rate equal to not less than— a work-eligible individual and that receives 407(b)(2)(C)) receiving assistance under the ‘‘(A) 50 percent for fiscal year 2006; assistance in the month under the State pro- State program funded under this part; ‘‘(B) 55 percent for fiscal year 2007; gram funded under this part, subject to ‘‘(B) establish for each family that includes ‘‘(C) 60 percent for fiscal year 2008; clause (ii). such an individual, in consultation as the ‘‘(D) 65 percent for fiscal year 2009; and ‘‘(ii) STATE OPTION TO EXCLUDE CERTAIN State deems appropriate with the individual, ‘‘(E) 70 percent for fiscal year 2010 and each FAMILIES.—At the option of a State, the term a self-sufficiency plan that specifies appro- succeeding fiscal year. ‘counted family’ shall not include— priate activities described in the State plan ‘‘(2) MINIMUM PARTICIPATION RATE FLOOR.— ‘‘(I) a family in the first month for which submitted pursuant to section 402, including ‘‘(A) IN GENERAL.—A State to which a the family receives assistance from a State direct work activities as appropriate de- grant is made under section 403 for a fiscal program funded under this part on the basis signed to assist the family in achieving their year shall achieve a minimum participation of the most recent application for such as- maximum degree of self-sufficiency, and that rate floor, calculated in accordance with sistance; or provides for the ongoing participation of the subparagraph (B), that is not less than— ‘‘(II) on a case-by-case basis, a family in individual in the activities; ‘‘(i) 10 percent for fiscal year 2006; which the youngest child has not attained 12 ‘‘(C) require, at a minimum, each such in- ‘‘(ii) 20 percent for fiscal year 2007; months of age. dividual to participate in activities in ac- ‘‘(iii) 30 percent for fiscal year 2008; ‘‘(iii) STATE OPTION TO INCLUDE INDIVIDUALS cordance with the self-sufficiency plan; ‘‘(iv) 40 percent for fiscal year 2009; and RECEIVING ASSISTANCE UNDER A TRIBAL FAM- ‘‘(D) monitor the participation of each ‘‘(v) 55 percent for fiscal year 2010 and each ILY ASSISTANCE PLAN OR TRIBAL WORK PRO- such individual in the activities specified in succeeding fiscal year. GRAM.—At the option of a State, the term the self sufficiency plan, and regularly re- ‘‘(B) CALCULATION OF PARTICIPATION RATES ‘counted family’ may include families in the view the progress of the family toward self- FOR DETERMINING COMPLIANCE WITH MINIMUM State that are receiving assistance under a sufficiency; PARTICIPATION RATE FLOOR.— tribal family assistance plan approved under ‘‘(E) upon such a review, revise the self-suf- ‘‘(i) IN GENERAL.—For purposes of deter- section 412 or under a tribal work program to ficiency plan and activities as the State mining compliance with subparagraph (A), which funds are provided under this part. deems appropriate. the provisions of subsection (b) shall apply ‘‘(C) WORK-ELIGIBLE INDIVIDUAL DEFINED.— ‘‘(2) TIMING.—The State shall comply with with respect to the calculation of the par- In this section, the term ‘work-eligible indi- paragraph (1) with respect to a family— ticipation rate of a State for a fiscal year ex- vidual’ means an individual— ‘‘(A) in the case of a family that, as of Oc- cept as provided in clauses (ii) and (iii). ‘‘(i) who is married or a single head of tober 1, 2005, is not receiving assistance from ‘‘(ii) SPECIAL RULES.—For purposes of this household; and the State program funded under this part, paragraph— ‘‘(ii) whose needs are (or, but for sanctions not later than 60 days after the family first ‘‘(I) a reduction under subsection (b)(3) under this part that have been in effect for receives assistance on the basis of the most shall not be applied with respect to a State more than 3 months (whether or not con- recent application for the assistance; or for a fiscal year to the extent it would re- secutive) in the preceding 12 months or ‘‘(B) in the case of a family that, as of such duce the minimum participation rate the under part D, would be) included in deter- date, is receiving the assistance, not later State is otherwise required to meet below mining the amount of cash assistance to be than 12 months after the date of enactment the level specified in subparagraph (A) for provided to the family under the State pro- of this subsection. such fiscal year; gram funded under this part.’’. ‘‘(3) STATE DISCRETION.—A State shall have ‘‘(II) the participation rate determined (c) RECALIBRATION OF CASELOAD REDUCTION sole discretion, consistent with section 407, under paragraphs (1) and (2) of subsection (b) CREDIT.— to define and design activities for families for a State for a fiscal year may not be in- (1) IN GENERAL.—Section 407(b)(3)(A)(ii) (42 for purposes of this subsection, to develop creased as provided in subsection (b)(4) if the U.S.C. 607(b)(3)(A)(ii)) is amended to read as methods for monitoring and reviewing State’s participation rate (as so determined) follows: progress pursuant to this subsection, and to is below the level specified for such fiscal ‘‘(ii) the average monthly number of fami- make modifications to the plan as the State year in subparagraph (A); and lies that received assistance under the State deems appropriate to assist the individual in ‘‘(III) the options to exclude certain fami- program funded under this part during the increasing their degree of self-sufficiency. lies for purposes of determining monthly base year.’’. ‘‘(4) RULE OF INTERPRETATION.—Nothing in participation rates provided in subsection (2) CONFORMING AMENDMENT.—Section this part shall preclude a State from requir- (b)(2)(B)(ii) shall not apply. 407(b)(3)(B) (42 U.S.C. 607(b)(3)(B)) is amended ing participation in work and any other ac- ‘‘(iii) DEFINITION OF ASSISTANCE.—For pur- by striking ‘‘and eligibility criteria’’ and all tivities the State deems appropriate for poses of this paragraph, the term ‘assistance’ that follows through the close parenthesis helping families achieve self-sufficiency and in subsection (b) shall be deemed to mean as- and inserting ‘‘and the eligibility criteria in improving child well-being.’’. sistance to a family that— effect during the then applicable base year’’. (2) PENALTY FOR FAILURE TO ESTABLISH ‘‘(I) meets the definition of that term in (3) BASE YEAR DEFINED.—Section 407(b)(3) FAMILY SELF-SUFFICIENCY PLAN.—Section section 419; and (42 U.S.C. 607(b)(3)) is amended by adding at 409(a)(3) (42 U.S.C. 609(a)(3)) is amended— ‘‘(II) is provided— the end the following: (A) in the paragraph heading, by inserting ‘‘(aa) under the State program funded ‘‘(C) BASE YEAR DEFINED.—In this para- ‘‘or establish family self-sufficiency plan’’ under this part; or graph, the term ‘base year’ means, with re- after ‘‘rates’’; and ‘‘(bb) under a program funded with quali- spect to a fiscal year— (B) in subparagraph (A), by inserting ‘‘or fied State expenditures (as defined in section ‘‘(i) if the fiscal year is fiscal year 2006, fis- 408(b)’’ after ‘‘407(a)’’. 409(a)(7)(B)(i)). cal year 1996;

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00161 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S268 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(ii) if the fiscal year is fiscal year 2007, engagement in a direct work activity, sub- 409(a)(7)(B)(i)) for at least 1 month and there- fiscal year 1998; ject to clause (iii). after until the State determines that the in- ‘‘(iii) if the fiscal year is fiscal year 2008, ‘‘(ii) QUALIFIED ACTIVITY DEFINED.—The dividual has resumed full participation in fiscal year 2001; or term ‘qualified activity’ means an activity the activities, subject to such good cause ex- ‘‘(iv) if the fiscal year is fiscal year 2009 or specified by the State (subject to the exclu- ceptions as the State may establish. any succeeding fiscal year, the then 4th pre- sion described in paragraph (1)) that meets ‘‘(B) SPECIAL RULE.— ceding fiscal year.’’. such standards and criteria as the State may ‘‘(i) IN GENERAL.—In the event of a conflict (d) SUPERACHIEVER CREDIT.—Section 407(b) specify, including— between a requirement of clause (i)(II) or (ii) (42 U.S.C. 607(b)) is amended by striking ‘‘(I) substance abuse counseling or treat- of subparagraph (A) and a requirement of a paragraphs (4) and (5) and inserting the fol- ment; State constitution, or of a State statute lowing: ‘‘(II) rehabilitation treatment and services; that, before 1966, obligated local government ‘‘(4) SUPERACHIEVER CREDIT.— ‘‘(III) work-related education or training to provide assistance to needy parents and ‘‘(A) IN GENERAL.—The participation rate, directed at enabling the family member to children, the State constitutional or statu- determined under paragraphs (1) and (2) of work; tory requirement shall control. this subsection, of a superachiever State for ‘‘(IV) job search or job readiness assist- ‘‘(ii) LIMITATION.—Clause (i) of this sub- a fiscal year shall be increased by the lesser ance; and paragraph shall not apply after the 1-year of— ‘‘(V) any other activity that addresses a period that begins with the date of the en- ‘‘(i) the amount (if any) of the super- purpose specified in section 401(a). actment of this subparagraph.’’. achiever credit applicable to the State; or ‘‘(iii) LIMITATION.— (g) CONFORMING AMENDMENTS.— ‘‘(ii) the number of percentage points (if ‘‘(I) IN GENERAL.—Except as provided in (1) Section 407(f) (42 U.S.C. 607(f)) is amend- any) by which the minimum participation subclause (II), clause (i) shall not apply to a ed in each of paragraphs (1) and (2) by strik- rate required by subsection (a) for the fiscal family for more than 3 months in any period ing ‘‘work activity described in subsection year exceeds 50 percent. of 24 consecutive months. (d)’’ and inserting ‘‘direct work activity’’. ‘‘(B) SUPERACHIEVER STATE.—For purposes ‘‘(II) SPECIAL RULE APPLICABLE TO EDU- (2) The heading of section 409(a)(14) (42 of subparagraph (A), a State is a super- CATION AND TRAINING.—A State may, on a U.S.C. 609(a)(14)) is amended by inserting ‘‘or achiever State if the State caseload for fiscal case-by-case basis, apply clause (i) to a refusing to engage in activities under a fam- year 2001 has declined by at least 60 percent work-eligible individual so that participa- ily self-sufficiency plan’’ after ‘‘work’’. from the State caseload for fiscal year 1995. tion by the individual in education or train- ‘‘(C) AMOUNT OF CREDIT.—The super- ing, if needed to permit the individual to SEC. 111. MAINTENANCE OF EFFORT. achiever credit applicable to a State is the complete a certificate program or other (a) IN GENERAL.—Section 409(a)(7) (42 number of percentage points (if any) by work-related education or training directed U.S.C. 609(a)(7)) is amended— which the decline referred to in subpara- at enabling the individual to fill a known job (1) in subparagraph (A), by striking ‘‘fiscal graph (B) exceeds 60 percent. need in a local area, may be considered year 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, ‘‘(D) DEFINITIONS.—In this paragraph: countable hours with respect to the family of or 2006’’ and inserting ‘‘fiscal year 2006, 2007, ‘‘(i) STATE CASELOAD FOR FISCAL YEAR the individual for not more than 4 months in 2008, 2009, 2010, or 2011’’; and 2001.—The term ‘State caseload for fiscal year any period of 24 consecutive months. (2) in subparagraph (B)(ii)— 2001’ means the average monthly number of ‘‘(B) SCHOOL ATTENDANCE BY TEEN HEAD OF (A) by inserting ‘‘preceding’’ before ‘‘fiscal families that received assistance during fis- HOUSEHOLD.—The work-eligible members of a year’’; and cal year 2001 under the State program funded family shall be considered to be engaged in a (B) by striking ‘‘for fiscal years 1997 under this part. direct work activity for an average of 40 through 2005,’’. ‘‘(ii) STATE CASELOAD FOR FISCAL YEAR hours per week in a month if the family in- (b) STATE SPENDING ON PROMOTING 1995.—The term ‘State caseload for fiscal year cludes an individual who is married, or is a HEALTHY MARRIAGE.— 1995’ means the average monthly number of single head of household, who has not at- (1) IN GENERAL.—Section 404 (42 U.S.C. 604) families that received aid under the State tained 20 years of age, and the individual— is amended by adding at the end the fol- plan approved under part A (as in effect on ‘‘(i) maintains satisfactory attendance at lowing: September 30, 1995) during fiscal year 1995.’’. secondary school or the equivalent in the ‘‘(l) MARRIAGE PROMOTION.—A State, terri- (e) COUNTABLE HOURS.—Section 407 of such month; or tory, or tribal organization to which a grant Act (42 U.S.C. 607) is amended by striking ‘‘(ii) participates in education directly re- is made under section 403(a)(2) may use a subsections (c) and (d) and inserting the fol- lated to employment for an average of at grant made to the State, territory, or tribal lowing: least 20 hours per week in the month. organization under any other provision of ‘‘(c) COUNTABLE HOURS.— ‘‘(d) DIRECT WORK ACTIVITY.—In this sec- section 403 for marriage promotion activi- ‘‘(1) DEFINITION.—In subsection (b)(2), the tion, the term ‘direct work activity’ means— ties, and the amount of any such grant so term ‘countable hours’ means, with respect ‘‘(1) unsubsidized employment; used shall be considered State funds for pur- to a family for a month, the total number of ‘‘(2) subsidized private sector employment; poses of section 403(a)(2).’’. hours in the month in which any member of ‘‘(3) subsidized public sector employment; (2) FEDERAL TANF FUNDS USED FOR MAR- the family who is a work-eligible individual ‘‘(4) on-the-job training; RIAGE PROMOTION DISREGARDED FOR PURPOSES is engaged in a direct work activity or other ‘‘(5) supervised work experience; or OF MAINTENANCE OF EFFORT REQUIREMENT.— activities specified by the State (excluding ‘‘(6) supervised community service.’’. Section 409(a)(7)(B)(i) (42 U.S.C. an activity that does not address a purpose (f) PENALTIES AGAINST INDIVIDUALS.—Sec- 609(a)(7)(B)(i)), as amended by section 103(c) specified in section 401(a)), subject to the tion 407(e)(1) (42 U.S.C. 607(e)(1)) is amended of this Act, is amended by adding at the end other provisions of this subsection. to read as follows: the following: ‘‘(2) LIMITATIONS.—Subject to such regula- ‘‘(1) REDUCTION OR TERMINATION OF ASSIST- ‘‘(VI) EXCLUSION OF FEDERAL TANF FUNDS tions as the Secretary may prescribe: ANCE.— USED FOR MARRIAGE PROMOTION ACTIVITIES.— ‘‘(A) MINIMUM WEEKLY AVERAGE OF 24 HOURS ‘‘(A) IN GENERAL.—Except as provided in Such term does not include the amount of OF DIRECT WORK ACTIVITIES REQUIRED.—If the paragraph (2), if an individual in a family re- any grant made to the State under section work-eligible individuals in a family are en- ceiving assistance under a State program 403 that is expended for a marriage pro- gaged in a direct work activity for an aver- funded under this part fails to engage in ac- motion activity.’’. age total of fewer than 24 hours per week in tivities required in accordance with this sec- a month, then the number of countable tion, or other activities required by the SEC. 112. PERFORMANCE IMPROVEMENT. hours with respect to the family for the State under the program, and the family (a) STATE PLANS.—Section 402(a) (42 U.S.C. month shall be zero. does not otherwise engage in activities in ac- 602(a)) is amended— ‘‘(B) MAXIMUM WEEKLY AVERAGE OF 16 cordance with the self-sufficiency plan estab- (1) in paragraph (1)— HOURS OF OTHER ACTIVITIES.—An average of lished for the family pursuant to section (A) in subparagraph (A)— not more than 16 hours per week of activities 408(b), the State shall— (i) by redesignating clause (vi) and clause specified by the State (subject to the exclu- ‘‘(i) if the failure is partial or persists for (vii) (as added by section 103(a) of this Act) sion described in paragraph (1)) may be con- not more than 1 month— as clauses (vii) and (viii), respectively; and sidered countable hours in a month with re- ‘‘(I) reduce the amount of assistance other- (ii) by striking clause (v) and inserting the spect to a family. wise payable to the family pro rata (or more, following: ‘‘(3) SPECIAL RULES.—For purposes of para- at the option of the State) with respect to ‘‘(v) The document shall— graph (1): any period during a month in which the fail- ‘‘(I) describe how the State will pursue ‘‘(A) PARTICIPATION IN QUALIFIED ACTIVI- ure occurs; or ending dependence of needy families on gov- TIES.— ‘‘(II) terminate all assistance to the fam- ernment benefits and reducing poverty by ‘‘(i) IN GENERAL.—If, with the approval of ily, subject to such good cause exceptions as promoting job preparation and work; the State, the work-eligible individuals in a the State may establish; or ‘‘(II) describe how the State will encourage family are engaged in 1 or more qualified ac- ‘‘(ii) if the failure is total and persists for the formation and maintenance of healthy 2- tivities for an average total of at least 24 at least 2 consecutive months, terminate all parent married families, encourage respon- hours per week in a month, then all such en- cash payments to the family including quali- sible fatherhood, and prevent and reduce the gagement in the month shall be considered fied State expenditures (as defined in section incidence of out-of-wedlock pregnancies;

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00162 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S269 ‘‘(III) include specific, numerical, and (4) in clause (ix), by striking ‘‘, and if the latures, and others in defining the data ele- measurable performance objectives for ac- latter 2, the amount received’’; ments.’’. complishing subclauses (I) and (II), and with (5) in clause (x)— (e) ADDITIONAL REPORTS BY STATES.—Sec- respect to subclause (I), include objectives (A) by striking ‘‘each type of’’; and tion 411 (42 U.S.C. 611) is amended— consistent with the criteria used by the Sec- (B) by inserting before the period ‘‘and, if (1) by redesignating subsection (b) as sub- retary in establishing performance targets applicable, the reason for receipt of the as- section (e); and under section 403(a)(4)(B) if available; and sistance for a total of more than 60 months’’; (2) by inserting after subsection (a) the fol- ‘‘(IV) describe the methodology that the (6) in clause (xi), by striking the subclauses lowing: State will use to measure State performance and inserting the following: ‘‘(b) ANNUAL REPORTS ON PROGRAM CHARAC- in relation to each such objective. ‘‘(I) Subsidized private sector employment. TERISTICS.—Not later than 90 days after the ‘‘(vi) Describe any strategies and programs ‘‘(II) Unsubsidized employment. end of fiscal year 2006 and each succeeding the State may be undertaking to address— ‘‘(III) Public sector employment, super- fiscal year, each eligible State shall submit ‘‘(I) employment retention and advance- vised work experience, or supervised commu- to the Secretary a report on the characteris- ment for recipients of assistance under the nity service. tics of the State program funded under this program, including placement into high-de- ‘‘(IV) On-the-job training. part and other State programs funded with mand jobs, and whether the jobs are identi- ‘‘(V) Job search and placement. qualified State expenditures (as defined in fied using labor market information; ‘‘(VI) Training. section 409(a)(7)(B)(i)). The report shall in- ‘‘(II) efforts to reduce teen pregnancy; ‘‘(VII) Education. clude, with respect to each such program, ‘‘(III) services for struggling and non- ‘‘(VIII) Other activities directed at the pur- the program name, a description of program compliant families, and for clients with spe- poses of this part, as specified in the State activities, the program purpose, the program cial problems; and plan submitted pursuant to section 402.’’; eligibility criteria, the sources of program ‘‘(IV) program integration, including the (7) in clause (xii), by inserting ‘‘and funding, the number of program bene- extent to which employment and training progress toward universal engagement’’ after ficiaries, sanction policies, and any program services under the program are provided ‘‘participation rates’’; work requirements. through the One-Stop delivery system cre- (8) in clause (xiii), by striking ‘‘type and’’ ‘‘(c) MONTHLY REPORTS ON CASELOAD.—Not ated under the Workforce Investment Act of before ‘‘amount of assistance’’; later than 3 months after the end of a cal- 1998, and the extent to which former recipi- (9) in clause (xvi), by striking subclause endar month that begins 1 year or more after ents of such assistance have access to addi- (II) and redesignating subclauses (III) the enactment of this subsection, each eligi- tional core, intensive, or training services through (V) as subclauses (II) through (IV), ble State shall submit to the Secretary a re- funded through such Act.’’; and respectively; and port on the number of families and total (B) in subparagraph (B), by striking clause (10) by adding at the end the following: number of individuals receiving assistance in (iii) (as so redesignated by section 107(b)(1) of ‘‘(xviii) The date the family first received the calendar month under the State program this Act) and inserting the following: assistance from the State program on the funded under this part. ‘‘(d) ANNUAL REPORT ON PERFORMANCE IM- ‘‘(iii) The document shall describe strate- basis of the most recent application for such PROVEMENT.—Beginning with fiscal year 2007, gies and programs the State is undertaking assistance. not later than January 1 of each fiscal year, to engage religious organizations in the pro- ‘‘(xix) Whether a self-sufficiency plan is es- each eligible State shall submit to the Sec- vision of services funded under this part and tablished for the family in accordance with retary a report on achievement and improve- efforts related to section 104 of the Personal section 408(b). ment during the preceding fiscal year under Responsibility and Work Opportunity Rec- ‘‘(xx) With respect to any child in the fam- the numerical performance goals and meas- onciliation Act of 1996. ily, the marital status of the parents at the ures under the State program funded under ‘‘(iv) The document shall describe strate- birth of the child, and if the parents were not this part with respect to each of the matters gies to improve program management and then married, whether the paternity of the described in section 402(a)(1)(A)(v).’’. performance.’’; and child has been established.’’. (b) USE OF SAMPLES.—Section 411(a)(1)(B) (f) ANNUAL REPORTS TO CONGRESS BY THE (2) in paragraph (4), by inserting ‘‘and trib- (42 U.S.C. 611(a)(1)(B)) is amended— SECRETARY.—Section 411(e), as so redesig- al’’ after ‘‘that local’’. (1) in clause (i)— nated by subsection (e) of this section, is (b) CONSULTATION WITH STATE REGARDING amended— PLAN AND DESIGN OF TRIBAL PROGRAMS.— (A) by striking ‘‘a sample’’ and inserting Section 412(b)(1) (42 U.S.C. 612(b)(1)) is ‘‘samples’’; and (1) in the matter preceding paragraph (1), amended— (B) by inserting before the period ‘‘, except by striking ‘‘and each fiscal year thereafter’’ (1) by striking ‘‘and’’ at the end of subpara- that the Secretary may designate core data and inserting ‘‘and by July 1 of each fiscal graph (E); elements that must be reported on all fami- year thereafter’’; (2) by striking the period at the end of sub- lies’’; and (2) in paragraph (2), by striking ‘‘families paragraph (F) and inserting ‘‘; and’’; and (2) in clause (ii), by striking ‘‘funded under applying for assistance,’’ and by striking the (3) by adding at the end the following: this part’’ and inserting ‘‘described in sub- last comma; and ‘‘(G) provides an assurance that the State paragraph (A)’’. (3) in paragraph (3), by inserting ‘‘and in which the tribe is located has been con- (c) REPORT ON FAMILIES THAT BECOME IN- other programs funded with qualified State sulted regarding the plan and its design.’’. ELIGIBLE TO RECEIVE ASSISTANCE.—Section expenditures (as defined in section (c) PERFORMANCE MEASURES.—Section 413 411(a) (42 U.S.C. 611(a)) is amended— 409(a)(7)(B)(i))’’ before the semicolon. (42 U.S.C. 613) is amended by adding at the (1) by striking paragraph (5); (g) INCREASED ANALYSIS OF STATE SINGLE end the following: (2) by redesignating paragraph (6) as para- AUDIT REPORTS.—Section 411 (42 U.S.C. 611) ‘‘(k) PERFORMANCE IMPROVEMENT.—The graph (5); and is amended by adding at the end the fol- Secretary, in consultation with the States, (3) by inserting after paragraph (5) (as so lowing: shall develop uniform performance measures redesignated) the following: ‘‘(f) INCREASED ANALYSIS OF STATE SINGLE designed to assess the degree of effective- ‘‘(6) REPORT ON FAMILIES THAT BECOME IN- AUDIT REPORTS.— ness, and the degree of improvement, of ELIGIBLE TO RECEIVE ASSISTANCE.—The report ‘‘(1) IN GENERAL.—Within 3 months after a State programs funded under this part in ac- required by paragraph (1) for a fiscal quarter State submits to the Secretary a report pur- complishing the purposes of this part.’’. shall include for each month in the quarter suant to section 7502(a)(1)(A) of title 31, (d) ANNUAL RANKING OF STATES.—Section the number of families and total number of United States Code, the Secretary shall ana- 413(d)(1) (42 U.S.C. 613(d)(1)) is amended by individuals that, during the month, became lyze the report for the purpose of identifying striking ‘‘long-term private sector jobs’’ and ineligible to receive assistance under the the extent and nature of problems related to inserting ‘‘private sector jobs, the success of State program funded under this part (bro- the oversight by the State of nongovern- the recipients in retaining employment, the ken down by the number of families that be- mental entities with respect to contracts en- ability of the recipients to increase their come so ineligible due to earnings, changes tered into by such entities with the State wages’’. in family composition that result in in- program funded under this part, and deter- SEC. 113. DATA COLLECTION AND REPORTING. creased earnings, sanctions, time limits, or mining what additional actions may be ap- (a) CONTENTS OF REPORT.—Section other specified reasons).’’. propriate to help prevent and correct the 411(a)(1)(A) (42 U.S.C. 611(a)(1)(A)) is amend- (d) REGULATIONS.—Section 411(a)(7) (42 problems. ed— U.S.C. 611(a)(7)) is amended— ‘‘(2) INCLUSION OF PROGRAM OVERSIGHT SEC- (1) in the matter preceding clause (i), by (1) by inserting ‘‘and to collect the nec- TION IN ANNUAL REPORT TO THE CONGRESS.— inserting ‘‘and on families receiving assist- essary data’’ before ‘‘with respect to which The Secretary shall include in each report ance under State programs funded with reports’’; under subsection (e) a section on oversight of other qualified State expenditures (as de- (2) by striking ‘‘subsection’’ and inserting State programs funded under this part, in- fined in section 409(a)(7)(B))’’ before the ‘‘section’’; and cluding findings on the extent and nature of colon; (3) by striking ‘‘in defining the data ele- the problems referred to in paragraph (1), ac- (2) in clause (vii), by inserting ‘‘and minor ments’’ and all that follows and inserting ‘‘, tions taken to resolve the problems, and to parent’’ after ‘‘of each adult’’; the National Governors’ Association, the the extent the Secretary deems appropriate (3) in clause (viii), by striking ‘‘and edu- American Public Human Services Associa- make recommendations on changes needed cational level’’; tion, the National Conference of State Legis- to resolve the problems.’’.

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SEC. 114. DIRECT FUNDING AND ADMINISTRA- (c) REPORT ON ENFORCEMENT OF CERTAIN ‘‘(A) IN GENERAL.—The term ‘assistance’ TION BY INDIAN TRIBES. AFFIDAVITS OF SUPPORT AND SPONSOR DEEM- means payment, by cash, voucher, or other (a) TRIBAL FAMILY ASSISTANCE GRANT.— ING.—Not later than March 31, 2006, the Sec- means, to or for an individual or family for Section 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is retary of Health and Human Services, in con- the purpose of meeting a subsistence need of amended by striking ‘‘1997, 1998, 1999, 2000, sultation with the Attorney General, shall the individual or family (including food, 2001, 2002, and 2003’’ and inserting ‘‘2006 submit to the Congress a report on the en- clothing, shelter, and related items, but not through 2010’’. forcement of affidavits of support and spon- including costs of transportation or child (b) GRANTS FOR INDIAN TRIBES THAT RE- sor deeming as required by section 421, 422, care). CEIVED JOBS FUNDS.—Section 412(a)(2)(A) (42 and 432 of the Personal Responsibility and ‘‘(B) EXCEPTION.—The term ‘assistance’ U.S.C. 612(a)(2)(A)) is amended by striking Work Opportunity Reconciliation Act of does not include a payment described in sub- ‘‘1997, 1998, 1999, 2000, 2001, 2002, and 2003’’ and 1996. paragraph (A) to or for an individual or fam- inserting ‘‘2006 through 2010’’. (d) REPORT ON COORDINATION.—Not later ily on a short-term, nonrecurring basis (as SEC. 115. RESEARCH, EVALUATIONS, AND NA- TIONAL STUDIES. than 6 months after the date of the enact- defined by the State in accordance with reg- ment of this Act, the Secretary of Health ulations prescribed by the Secretary).’’. (a) SECRETARY’S FUND FOR RESEARCH, DEM- ONSTRATIONS, AND TECHNICAL ASSISTANCE.— and Human Services and the Secretary of (b) CONFORMING AMENDMENTS.— (1) IN GENERAL.—Section 413 (42 U.S.C. 613), Labor shall jointly submit a report to the (1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is as amended by section 112(c) of this Act, is Congress describing common or conflicting amended by striking ‘‘assistance’’ and in- further amended by adding at the end the data elements, definitions, performance serting ‘‘aid’’. following: measures, and reporting requirements in the (2) Section 404(f) (42 U.S.C. 604(f)) is amend- ‘‘(l) FUNDING FOR RESEARCH, DEMONSTRA- Workforce Investment Act of 1998 and part A ed by striking ‘‘assistance’’ and inserting TIONS, AND TECHNICAL ASSISTANCE.— of title IV of the Social Security Act, and, to ‘‘benefits or services’’. ‘‘(1) APPROPRIATION.— the degree each Secretary deems appro- (3) Section 408(a)(5)(B)(i) (42 U.S.C. ‘‘(A) IN GENERAL.—Out of any money in the priate, at the discretion of either Secretary, 608(a)(5)(B)(i)) is amended in the heading by Treasury of the United States not otherwise any other program administered by the re- striking ‘‘ASSISTANCE’’ and inserting ‘‘AID’’. appropriated, there are appropriated spective Secretary, to allow greater coordi- (4) Section 413(d)(2) (42 U.S.C. 613(d)(2)) is $102,000,000 for each of fiscal years 2005 nation between the welfare and workforce amended by striking ‘‘assistance’’ and in- through 2010, which shall be available to the development systems. serting ‘‘aid’’. Secretary for the purpose of conducting and SEC. 116. STUDIES BY THE CENSUS BUREAU AND SEC. 118. TECHNICAL CORRECTIONS. supporting research and demonstration THE GOVERNMENT ACCOUNT- (a) Section 409(c)(2) (42 U.S.C. 609(c)(2)) is ABILITY OFFICE. projects by public or private entities, and amended by inserting a comma after ‘‘appro- (a) CENSUS BUREAU STUDY.— providing technical assistance to States, In- priate’’. dian tribal organizations, and such other en- (1) IN GENERAL.—Section 414(a) (42 U.S.C. (b) Section 411(a)(1)(A)(ii)(III) (42 U.S.C. tities as the Secretary may specify that are 614(a)) is amended to read as follows: 611(a)(1)(A)(ii)(III)) is amended by striking receiving a grant under this part, which ‘‘(a) IN GENERAL.—The Bureau of the Cen- the last close parenthesis. shall be expended primarily on activities de- sus shall implement or enhance a longitu- scribed in section 403(a)(2)(B), and which dinal survey of program participation, devel- (c) Section 413(j)(2)(A) (42 U.S.C. shall be in addition to any other funds made oped in consultation with the Secretary and 613(j)(2)(A)) is amended by striking ‘‘section’’ available under this part. made available to interested parties, to and inserting ‘‘sections’’. ‘‘(B) EXTENDED AVAILABILITY OF FY 2005 allow for the assessment of the outcomes of (d)(1) Section 413 (42 U.S.C. 613) is amended FUNDS.—Funds appropriated under this para- continued welfare reform on the economic by striking subsection (g) and redesignating graph for fiscal year 2005 shall remain avail- and child well-being of low-income families subsections (h) through (j) and subsections able to the Secretary through fiscal year with children, including those who received (k) and (l) (as added by sections 112(c) and 2006, for use in accordance with this para- assistance or services from a State program 115(a) of this Act, respectively) as sub- graph for fiscal year 2005. funded under this part, and, to the extent sections (g) through (k), respectively. ‘‘(2) SET ASIDE FOR DEMONSTRATION possible, shall provide State representative (2) Each of the following provisions is PROJECTS FOR COORDINATION OF PROVISION OF samples. The content of the survey should amended by striking ‘‘413(j)’’ and inserting CHILD WELFARE AND TANF SERVICES TO TRIBAL include such information as may be nec- ‘‘413(i)’’: FAMILIES AT RISK OF CHILD ABUSE OR NE- essary to examine the issues of out-of-wed- (A) Section 403(a)(5)(A)(ii)(III) (42 U.S.C. GLECT.— lock childbearing, marriage, welfare depend- 603(a)(5)(A)(ii)(III)). ‘‘(A) IN GENERAL.—Of the amounts made ency and compliance with work require- (B) Section 403(a)(5)(F) (42 U.S.C. available under paragraph (1) for a fiscal ments, the beginning and ending of spells of 603(a)(5)(F)). year, $2,000,000 shall be awarded on a com- assistance, work, earnings and employment (C) Section 403(a)(5)(G)(ii) (42 U.S.C. petitive basis to fund demonstration projects stability, and the well-being of children.’’. 603(a)(5)(G)(ii)). designed to test the effectiveness of tribal (2) APPROPRIATION.—Section 414(b) (42 (D) Section 412(a)(3)(B)(iv) (42 U.S.C. governments or tribal consortia in coordi- U.S.C. 614(b)) is amended— 612(a)(3)(B)(iv)). nating the provision to tribal families at (A) by striking ‘‘1996,’’ and all that follows SEC. 119. FATHERHOOD PROGRAM. risk of child abuse or neglect of child welfare through ‘‘2003’’ and inserting ‘‘2006 through (a) SHORT TITLE.—This section may be services and services under tribal programs 2010’’; and cited as the ‘‘Promotion and Support of Re- funded under this part. (B) by adding at the end the following: sponsible Fatherhood and Healthy Marriage ‘‘(B) USE OF FUNDS.—A grant made to such ‘‘Funds appropriated under this subsection Act of 2005’’. a project shall be used— shall remain available through fiscal year (b) FATHERHOOD PROGRAM.— ‘‘(i) to improve case management for fami- 2010 to carry out subsection (a).’’. (1) IN GENERAL.—Title I of the Personal Re- lies eligible for assistance from such a tribal (b) GAO STUDY.— sponsibility and Work Opportunity Rec- program; (1) IN GENERAL.—The Comptroller General onciliation Act of 1996 (Public Law 104–193) is ‘‘(ii) for supportive services and assistance of the United States shall conduct a study to amended by adding at the end the following: to tribal children in out-of-home placements determine the combined effect of the phase- ‘‘SEC. 117. FATHERHOOD PROGRAM. and the tribal families caring for such chil- out rates for Federal programs and policies ‘‘(a) IN GENERAL.—Title IV (42 U.S.C. 601– dren, including families who adopt such chil- which provide support to low-income fami- 679b) is amended by inserting after part B dren; and lies and individuals as they move from wel- the following: ‘‘(iii) for prevention services and assist- fare to work, at all earning levels up to ance to tribal families at risk of child abuse $35,000 per year, for at least 5 States includ- ‘PART C—FATHERHOOD PROGRAM and neglect. ing Wisconsin and California, and any poten- ‘SEC. 441. FINDINGS AND PURPOSES. ‘‘(C) REPORTS.—The Secretary may require tial disincentives the combined phase-out a recipient of funds awarded under this para- ‘(a) FINDINGS.—The Congress finds that rates create for families to achieve independ- graph to provide the Secretary with such in- there is substantial evidence strongly indi- ence or to marry. formation as the Secretary deems relevant cating the urgent need to promote and sup- (2) REPORT.—Not later than 1 year after to enable the Secretary to facilitate and port involved, committed, and responsible the date of the enactment of this subsection, oversee the administration of any project for fatherhood, and to encourage and support the Comptroller General shall submit a re- which funds are provided under this para- healthy marriages between parents raising port to Congress containing the results of graph.’’. children, including data demonstrating the the study conducted under this section and, (2) EFFECTIVE DATE.—The amendment following: as appropriate, any recommendations con- made by paragraph (1) shall take effect on ‘(1) In approximately 84 percent of cases sistent with the results. the date of the enactment of this Act. where a parent is absent, that parent is the (b) FUNDING OF STUDIES AND DEMONSTRA- SEC. 117. DEFINITION OF ASSISTANCE. father. TIONS.—Section 413(h)(1) (42 U.S.C. 613(h)(1)) (a) IN GENERAL.—Section 419 (42 U.S.C. 619) ‘(2) If current trends continue, half of all is amended in the matter preceding subpara- is amended by adding at the end the fol- children born today will live apart from one graph (A) by striking ‘‘1997 through 2002’’ and lowing: of their parents, usually their father, at inserting ‘‘2006 through 2010’’. ‘‘(6) ASSISTANCE.— some point before they turn 18.

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‘(3) Where families (whether intact or with given them in subsections (e) and (l), respec- ‘(8) COOPERATION WITH SECRETARY’S OVER- a parent absent) are living in poverty, a sig- tively, of section 4 of the Indian Self-Deter- SIGHT AND EVALUATION.—An agreement to co- nificant factor is the father’s lack of job mination and Education Assistance Act. operate with the Secretary’s evaluation of skills. ‘SEC. 443. COMPETITIVE GRANTS FOR SERVICE projects assisted under this section, by ‘(4) Committed and responsible fathering PROJECTS. means including random assignment of cli- during infancy and early childhood contrib- ‘(a) IN GENERAL.—The Secretary may make ents to service recipient and control groups, utes to the development of emotional secu- grants for fiscal years 2006 through 2010 to if determined by the Secretary to be appro- rity, curiosity, and math and verbal skills. public and nonprofit community entities, in- priate, and affording the Secretary access to ‘(5) An estimated 19,400,000 children (27 per- cluding religious organizations, and to In- the project and to project-related records cent) live apart from their biological father. dian tribes and tribal organizations, for dem- and documents, staff, and clients. ‘(6) Forty percent of children under age 18 onstration service projects and activities de- ‘(c) ELIGIBILITY CRITERIA FOR LIMITED PUR- not living with their biological father had signed to test the effectiveness of various ap- POSE GRANTS.—In order to be eligible for a not seen their father even once in the last 12 proaches to accomplish the objectives speci- grant under this section in an amount under months, according to national survey data. fied in section 441(b)(1). $25,000 per fiscal year, an entity shall submit ‘(b) PURPOSES.—The purposes of this part ‘(b) ELIGIBILITY CRITERIA FOR FULL SERVICE an application to the Secretary containing are: GRANTS.—In order to be eligible for a grant the following: ‘(1) To provide for projects and activities under this section, except as specified in sub- ‘(1) PROJECT DESCRIPTION.—A description of by public entities and by nonprofit commu- section (c), an entity shall submit an appli- the project and how it will be carried out, in- nity entities, including religious organiza- cation to the Secretary containing the fol- cluding the number and characteristics of tions, designed to test promising approaches lowing: clients to be served, the proposed duration of to accomplishing the following objectives: ‘(1) PROJECT DESCRIPTION.—A statement in- the project, and how it will address at least ‘(A) Promoting responsible, caring, and ef- cluding— 1 of the 4 objectives specified in section fective parenting through counseling, men- ‘(A) a description of the project and how it 441(b)(1). toring, and parenting education, dissemina- will be carried out, including the geo- ‘(2) QUALIFICATIONS.—Such information as tion of educational materials and informa- graphical area to be covered and the number the Secretary may require as to the capacity tion on parenting skills, encouragement of and characteristics of clients to be served, of the entity to carry out the project, includ- positive father involvement, including the and how it will address each of the 4 objec- ing any previous experience with similar ac- positive involvement of nonresident fathers, tives specified in section 441(b)(1); and tivities. and other methods. ‘(B) a description of the methods to be used ‘(3) COORDINATION WITH RELATED PRO- ‘(B) Enhancing the abilities and commit- by the entity or its contractor to assess the GRAMS.—As required by the Secretary in ap- ment of unemployed or low-income fathers extent to which the project was successful in propriate cases, an undertaking to coordi- to provide material support for their fami- accomplishing its specific objectives and the nate and cooperate with State and local enti- lies and to avoid or leave welfare programs general objectives specified in section ties responsible for specific programs relat- by assisting them to take full advantage of 441(b)(1). ing to the objectives of the project including, education, job training, and job search pro- ‘(2) EXPERIENCE AND QUALIFICATIONS.—A as appropriate, jobs programs and programs grams, to improve work habits and work demonstration of ability to carry out the serving children and families. skills, to secure career advancement by ac- project, by means such as demonstration of ‘(4) RECORDS, REPORTS, AND AUDITS.—An tivities such as outreach and information experience in successfully carrying out agreement to maintain such records, make dissemination, coordination, as appropriate, projects of similar design and scope, and such reports, and cooperate with such re- with employment services and job training such other information as the Secretary may views or audits as the Secretary may find programs, including the One-Stop delivery find necessary to demonstrate the entity’s necessary for purposes of oversight of project system established under title I of the Work- capacity to carry out the project, including activities and expenditures. force Investment Act of 1998, encouragement the entity’s ability to provide the non-Fed- ‘(5) COOPERATION WITH SECRETARY’S OVER- and support of timely payment of current eral share of project resources. SIGHT AND EVALUATION.—An agreement to co- child support and regular payment toward ‘(3) ADDRESSING CHILD ABUSE AND NEGLECT operate with the Secretary’s evaluation of past due child support obligations in appro- AND DOMESTIC VIOLENCE.—A description of projects assisted under this section, by priate cases, and other methods. how the entity will assess for the presence means including affording the Secretary ac- ‘(C) Improving fathers’ ability to effec- of, and intervene to resolve, domestic vio- cess to the project and to project-related tively manage family business affairs by lence and child abuse and neglect, including records and documents, staff, and clients. means such as education, counseling, and how the entity will coordinate with State ‘(d) CONSIDERATIONS IN AWARDING mentoring in matters including household and local child protective service and domes- GRANTS.— management, budgeting, banking, and han- tic violence programs. ‘(1) DIVERSITY OF PROJECTS.—In awarding dling of financial transactions, time manage- ‘(4) ADDRESSING CONCERNS RELATING TO SUB- grants under this section, the Secretary ment, and home maintenance. STANCE ABUSE AND SEXUAL ACTIVITY.—A com- shall seek to achieve a balance among enti- ‘(D) Encouraging and supporting healthy mitment to make available to each indi- ties of differing sizes, entities in differing ge- marriages and married fatherhood through vidual participating in the project education ographic areas, entities in urban and in rural such activities as premarital education, in- about alcohol, tobacco, and other drugs, and areas, and entities employing differing meth- cluding the use of premarital inventories, about the health risks associated with abus- ods of achieving the purposes of this section, marriage preparation programs, skills-based ing such substances, and information about including working with the State agency re- marriage education programs, marital ther- diseases and conditions transmitted through sponsible for the administration of part D to apy, couples counseling, divorce education substance abuse and sexual contact, includ- help fathers satisfy child support arrearage and reduction programs, divorce mediation ing HIV/AIDS, and to coordinate with pro- obligations. and counseling, relationship skills enhance- viders of services addressing such problems, ‘(2) PREFERENCE FOR PROJECTS SERVING ment programs, including those designed to as appropriate. LOW-INCOME FATHERS.—In awarding grants reduce child abuse and domestic violence, ‘(5) COORDINATION WITH SPECIFIED PRO- under this section, the Secretary may give and dissemination of information about the GRAMS.—An undertaking to coordinate, as preference to applications for projects in benefits of marriage for both parents and appropriate, with State and local entities re- which a majority of the clients to be served children. sponsible for the programs under parts A, B, are low-income fathers. ‘(2) Through the projects and activities de- and D of this title, including programs under ‘(e) FEDERAL SHARE.— scribed in paragraph (1), to improve out- title I of the Workforce Investment Act of ‘(1) IN GENERAL.—Grants for a project comes for children with respect to measures 1998 (including the One-Stop delivery sys- under this section for a fiscal year shall be such as increased family income and eco- tem), and such other programs as the Sec- available for a share of the cost of such nomic security, improved school perform- retary may require. project in such fiscal year equal to— ance, better health, improved emotional and ‘(6) RECORDS, REPORTS, AND AUDITS.—An ‘(A) up to 80 percent (or up to 90 percent, if behavioral stability and social adjustment, agreement to maintain such records, make the entity demonstrates to the Secretary’s and reduced risk of delinquency, crime, sub- such reports, and cooperate with such re- satisfaction circumstances limiting the enti- stance abuse, child abuse and neglect, teen views or audits as the Secretary may find ty’s ability to secure non-Federal resources) sexual activity, and teen suicide. necessary for purposes of oversight of project in the case of a project under subsection (b); ‘(3) To evaluate the effectiveness of various activities and expenditures. and approaches and to disseminate findings con- ‘(7) SELF-INITIATED EVALUATION.—If the en- ‘(B) up to 100 percent, in the case of a cerning outcomes and other information in tity elects to contract for independent eval- project under subsection (c). order to encourage and facilitate the replica- uation of the project (part or all of the cost ‘(2) NON-FEDERAL SHARE.—The non-Federal tion of effective approaches to accomplishing of which may be paid for using grant funds), share may be in cash or in kind. In deter- these objectives. a commitment to submit to the Secretary a mining the amount of the non-Federal share, ‘SEC. 442. DEFINITIONS. copy of the evaluation report within 30 days the Secretary may attribute fair market ‘In this part, the terms ‘‘Indian tribe’’ and after completion of the report and not more value to goods, services, and facilities con- ‘‘tribal organization’’ have the meanings than 1 year after completion of the project. tributed from non-Federal sources.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00165 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S272 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘SEC. 444. MULTICITY, MULTISTATE DEMONSTRA- ‘(ii) will submit to the Secretary revised ‘(2) A final report on the evaluation to be TION PROJECTS. descriptions of the project design as modified completed by September 30, 2013. ‘(a) IN GENERAL.—The Secretary may make in accordance with clause (i); and ‘SEC. 446. PROJECTS OF NATIONAL SIGNIFI- grants under this section for fiscal years 2006 ‘(iii) will cooperate fully with the Sec- CANCE. through 2010 to eligible entities (as specified retary’s ongoing oversight and ongoing and ‘The Secretary is authorized, by grant, in subsection (b)) for 2 multicity, multistate final evaluation of the project, by means in- contract, or cooperative agreement, to carry projects demonstrating approaches to cluding affording the Secretary access to the out projects and activities of national sig- achieving the objectives specified in section project and to project-related records and nificance relating to fatherhood promotion, 441(b)(1). One of the projects shall test the documents, staff, and clients. including— use of married couples to deliver program ‘(3) ADDRESSING CHILD ABUSE AND NEGLECT ‘(1) COLLECTION AND DISSEMINATION OF IN- services. AND DOMESTIC VIOLENCE.—A description of FORMATION.—Assisting States, communities, how the entity will assess for the presence and private entities, including religious or- ‘(b) ELIGIBLE ENTITIES.—An entity eligible of, and intervene to resolve, domestic vio- ganizations, in efforts to promote and sup- for a grant under this section must be a na- lence and child abuse and neglect, including port marriage and responsible fatherhood by tional nonprofit fatherhood promotion orga- how the entity will coordinate with State collecting, evaluating, developing, and mak- nization that meets the following require- and local child protective service and domes- ing available (through the Internet and by ments: tic violence programs. other means) to all interested parties infor- ‘(1) EXPERIENCE WITH FATHERHOOD PRO- ‘(4) ADDRESSING CONCERNS RELATING TO SUB- mation regarding approaches to accom- GRAMS.—The organization must have sub- STANCE ABUSE AND SEXUAL ACTIVITY.—A com- plishing the objectives specified in section stantial experience in designing and success- mitment to make available to each indi- 441(b)(1). fully conducting programs that meet the vidual participating in the project education ‘(2) MEDIA CAMPAIGN.—Developing, pro- purposes described in section 441. about alcohol, tobacco, and other drugs, and moting, and distributing to interested ‘(2) EXPERIENCE WITH MULTICITY, about the health risks associated with abus- States, local governments, public agencies, MULTISTATE PROGRAMS AND GOVERNMENT CO- ing such substances, and information about and private nonprofit organizations, includ- ORDINATION.—The organization must have ex- diseases and conditions transmitted through ing charitable and religious organizations, a perience in simultaneously conducting such substance abuse and sexual contact, includ- media campaign that promotes and encour- programs in more than 1 major metropolitan ing HIV/AIDS, and to coordinate with pro- ages involved, committed, and responsible area in more than 1 State and in coordi- viders of services addressing such problems, fatherhood and married fatherhood. nating such programs, where appropriate, as appropriate. ‘(3) TECHNICAL ASSISTANCE.—Providing with State and local government agencies ‘(5) COORDINATION WITH SPECIFIED PRO- technical assistance, including consultation and private, nonprofit agencies (including GRAMS.—An undertaking to coordinate, as and training, to public and private entities, community-based and religious organiza- appropriate, with State and local entities re- including community organizations and tions), including State or local agencies re- sponsible for the programs funded under faith-based organizations, in the implemen- sponsible for child support enforcement and parts A, B, and D of this title, programs tation of local fatherhood promotion pro- workforce development. under title I of the Workforce Investment grams. ‘(c) APPLICATION REQUIREMENTS.—In order Act of 1998 (including the One-Stop delivery ‘(4) RESEARCH.—Conducting research re- to be eligible for a grant under this section, system), and such other programs as the Sec- lated to the purposes of this part. an entity must submit to the Secretary an retary may require. ‘SEC. 447. NONDISCRIMINATION. application that includes the following: ‘(6) RECORDS, REPORTS, AND AUDITS.—An ‘The projects and activities assisted under ‘(1) QUALIFICATIONS.— agreement to maintain such records, make this part shall be available on the same basis ‘(A) ELIGIBLE ENTITY.—A demonstration such reports, and cooperate with such re- to all fathers and expectant fathers able to that the entity meets the requirements of views or audits (in addition to those required benefit from such projects and activities, in- subsection (b). under the preceding provisions of paragraph cluding married and unmarried fathers and ‘(B) OTHER.—Such other information as the (2)) as the Secretary may find necessary for custodial and noncustodial fathers, with par- Secretary may find necessary to dem- purposes of oversight of project activities ticular attention to low-income fathers, and onstrate the entity’s capacity to carry out and expenditures. to mothers and expectant mothers on the the project, including the entity’s ability to ‘(d) FEDERAL SHARE.— same basis as to fathers. ‘(1) IN GENERAL.—Grants for a project provide the non-Federal share of project re- ‘SEC. 448. AUTHORIZATION OF APPROPRIATIONS; sources. under this section for a fiscal year shall be RESERVATION FOR CERTAIN PUR- ‘(2) PROJECT DESCRIPTION.—A description of available for up to 80 percent of the cost of POSE. and commitments concerning the project de- such project in such fiscal year. ‘(a) AUTHORIZATION.—There are authorized sign, including the following: ‘(2) NON-FEDERAL SHARE.—The non-Federal to be appropriated $20,000,000 for each of fis- ‘(A) IN GENERAL.—A detailed description of share may be in cash or in kind. In deter- cal years 2006 through 2010 to carry out the the proposed project design and how it will mining the amount of the non-Federal share, provisions of this part. be carried out, which shall— the Secretary may attribute fair market ‘(b) RESERVATION.—Of the amount appro- ‘(i) provide for the project to be conducted value to goods, services, and facilities con- priated under this section for each fiscal in at least 3 major metropolitan areas; tributed from non-Federal sources. year, not more than 15 percent shall be avail- ‘(ii) state how it will address each of the 4 ‘SEC. 445. EVALUATION. able for the costs of the multicity, multi- objectives specified in section 441(b)(1); ‘(a) IN GENERAL.—The Secretary, directly county, multistate demonstration projects ‘(iii) demonstrate that there is a sufficient or by contract or cooperative agreement, under section 444, evaluations under section number of potential clients to allow for the shall evaluate the effectiveness of service 445, and projects of national significance random selection of individuals to partici- projects funded under sections 443 and 444 under section 446.’. pate in the project and for comparisons with from the standpoint of the purposes specified ‘‘(b) INAPPLICABILITY OF EFFECTIVE DATE appropriate control groups composed of indi- in section 441(b)(1). PROVISIONS.—Section 116 shall not apply to viduals who have not participated in such ‘(b) EVALUATION METHODOLOGY.—Evalua- the amendment made by subsection (a) of projects; and tions under this section shall— this section.’’. ‘(iv) demonstrate that the project is de- ‘(1) include, to the maximum extent fea- (2) CLERICAL AMENDMENT.—Section 2 of signed to direct a majority of project re- sible, random assignment of clients to serv- such Act is amended in the table of contents sources to activities serving low-income fa- ice delivery and control groups and other ap- by inserting after the item relating to sec- thers (but the project need not make services propriate comparisons of groups of individ- tion 116 the following new item: available on a means-tested basis). uals receiving and not receiving services; ‘‘117. Fatherhood program.’’. ‘(B) OVERSIGHT, EVALUATION, AND ADJUST- ‘(2) describe and measure the effectiveness SEC. 120. STATE OPTION TO MAKE TANF PRO- MENT COMPONENT.—An agreement that the of the projects in achieving their specific GRAMS MANDATORY PARTNERS entity— project goals; and WITH ONE-STOP EMPLOYMENT ‘(i) in consultation with the evaluator se- ‘(3) describe and assess, as appropriate, the TRAINING CENTERS. lected pursuant to section 445, and as re- impact of such projects on marriage, par- Section 408 of the Social Security Act (42 quired by the Secretary, will modify the enting, domestic violence, child abuse and U.S.C. 608) is amended by adding at the end project design, initially and (if necessary) neglect, money management, employment the following: subsequently throughout the duration of the and earnings, payment of child support, and ‘‘(h) STATE OPTION TO MAKE TANF PRO- project, in order to facilitate ongoing and child well-being, health, and education. GRAMS MANDATORY PARTNERS WITH ONE-STOP final oversight and evaluation of project op- ‘(c) EVALUATION REPORTS.—The Secretary EMPLOYMENT TRAINING CENTERS.—For pur- eration and outcomes (by means including, shall publish the following reports on the re- poses of section 121(b) of the Workforce In- to the maximum extent feasible, random as- sults of the evaluation: vestment Act of 1998, a State program funded signment of clients to service recipient and ‘(1) An implementation evaluation report under part A of title IV of the Social Secu- control groups), and to provide for mid- covering the first 24 months of the activities rity Act shall be considered a program re- course adjustments in project design indi- under this part to be completed by 36 months ferred to in paragraph (1)(B) of such section, cated by interim evaluations; after initiation of such activities. unless, after the date of the enactment of

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00166 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S273 this subsection, the Governor of the State means as determined by the State, to par- nontraditional hours, or require child care notifies the Secretaries of Health and Human ents of eligible children, child care providers, services for infants or toddlers.’’. Services and Labor in writing of the decision and the general public, information regard- SEC. 205. ACTIVITIES TO IMPROVE THE QUALITY of the Governor not to make the State pro- ing— OF CHILD CARE. gram a mandatory partner.’’. ‘‘(i) the promotion of informed child care Section 658G of the Child Care and Devel- SEC. 121. SENSE OF THE CONGRESS. choices, including information about the opment Block Grant Act of 1990 (42 U.S.C. It is the sense of the Congress that a State quality and availability of child care serv- 9858e) is amended to read as follows: ices; welfare-to-work program should include a ‘‘SEC. 658G. ACTIVITIES TO IMPROVE THE QUAL- mentoring program. ‘‘(ii) research and best practices on chil- dren’s development, including early cog- ITY OF CHILD CARE SERVICES. SEC. 122. EXTENSION THROUGH FISCAL YEAR nitive development; ‘‘A State that receives funds to carry out 2005. this subchapter for a fiscal year, shall use (a) IN GENERAL.—Except as otherwise pro- ‘‘(iii) the availability of assistance to ob- tain child care services; and not less than 6 percent of the amount of such vided in this Act and the amendments made funds for activities provided through re- by this Act, activities authorized by part A ‘‘(iv) other programs for which families that receive child care services for which fi- source and referral services or other means, of title IV of the Social Security Act, and by that are designed to improve the quality of sections 429A, 1108(b), and 1130(a) of such Act, nancial assistance is provided under this sub- chapter may be eligible, including the food child care services in the State available to shall continue through September 30, 2005, in low-income parents from eligible child care the manner authorized for fiscal year 2004, stamp program, the WIC program under sec- tion 17 of the Child Nutrition Act of 1966, the providers. Such activities include— and out of any money in the Treasury of the child and adult care food program under sec- ‘‘(1) programs that provide training, edu- United States not otherwise appropriated, tion 17 of the Richard B. Russell National cation, and other professional development there are hereby appropriated such sums as School Lunch Act, and the medicaid and activities to enhance the skills of the child may be necessary for such purpose. Grants SCHIP programs under titles XIX and XXI of care workforce, including training opportu- and payments may be made pursuant to this the Social Security Act.’’, and nities for caregivers in informal care set- authority through the fourth quarter of fis- (2) by inserting after subparagraph (H) the tings; cal year 2005 at the level provided for such following: ‘‘(2) activities within child care settings to activities through the fourth quarter of fis- ‘‘(I) COORDINATION WITH OTHER EARLY CHILD enhance early learning for young children, to cal year 2004, except that in the case of sec- CARE SERVICES AND EARLY CHILDHOOD EDU- promote early literacy, and to foster school tion 403(a)(4) of such Act, the level shall be CATION PROGRAMS.—Demonstrate how the readiness; $100,000,000. State is coordinating child care services pro- ‘‘(3) initiatives to increase the retention FFECTIVE DATE.—Subsection (a) shall (b) E vided under this subchapter with Head Start, and compensation of child care providers, in- take effect on the date of the enactment of Early Reading First, Even Start, Ready-To- cluding tiered reimbursement rates for pro- this Act. Learn Television, State pre-kindergarten viders that meet quality standards as defined TITLE II—CHILD CARE programs, and other early childhood edu- by the State; or SEC. 201. SHORT TITLE. cation programs to expand accessibility to ‘‘(4) other activities deemed by the State This title may be cited as the ‘‘Caring for and continuity of care and early education to improve the quality of child care services Children Act of 2005’’. without displacing services provided by the provided in such State.’’. SEC. 202. GOALS. current early care and education delivery SEC. 206. REPORT BY SECRETARY. system. (a) GOALS.—Section 658A(b) of the Child Section 658L of the Child Care and Devel- ‘‘(J) PUBLIC-PRIVATE PARTNERSHIPS.—Dem- Care and Development Block Grant Act of opment Block Grant Act of 1990 (42 U.S.C. onstrate how the State encourages partner- 1990 (42 U.S.C. 9801 note) is amended— 9858j) is amended to read as follows: ships with private and other public entities (1) in paragraph (3) by striking ‘‘encour- ‘‘SEC. 658L. REPORT BY SECRETARY. age’’ and inserting ‘‘assist’’, to leverage existing service delivery systems ‘‘(a) REPORT REQUIRED.—Not later than Oc- (2) by amending paragraph (4) to read as of early childhood education and increase tober 1, 2007, and biennially thereafter, the follows: the supply and quality of child care services. ‘‘(K) CHILD CARE SERVICE QUALITY.— Secretary shall prepare and submit to the ‘‘(4) to assist States to provide child care ‘‘(i) CERTIFICATION.—For each fiscal year Committee on Education and the Workforce to low-income parents;’’, after fiscal year 2006, certify that during the of the House of Representatives and the (3) by redesignating paragraph (5) as para- then preceding fiscal year the State was in Committee on Health, Education, Labor and graph (7), and compliance with section 658G and describe Pensions of the Senate a report that con- (4) by inserting after paragraph (4) the fol- how funds were used to comply with such tains the following: lowing: section during such preceding fiscal year. ‘‘(1) A summary and analysis of the data ‘‘(5) to encourage States to improve the ‘‘(ii) STRATEGY.—For each fiscal year after and information provided to the Secretary in quality of child care available to families; fiscal year 2006, contain an outline of the the State reports submitted under section ‘‘(6) to promote school readiness by encour- strategy the State will implement during 658K. aging the exposure of young children in child such fiscal year for which the State plan is ‘‘(2) Aggregated statistics on the supply of, care to nurturing environments and develop- submitted, to address the quality of child demand for, and quality of child care, early mentally-appropriate activities, including care services in the State available to low- education, and non-school-hours programs. activities to foster early cognitive and lit- income parents from eligible child care pro- ‘‘(3) An assessment, and where appropriate, eracy development; and’’. viders, and include in such strategy— recommendations for the Congress con- (b) CONFORMING AMENDMENT.—Section ‘‘(I) a statement specifying how the State cerning efforts that should be undertaken to 658E(c)(3)(B) of the Child Care and Develop- will address the activities described in para- improve the access of the public to quality ment Block Grant Act of 1990 (42 U.S.C. graphs (1), (2), and (3) of section 658G; and affordable child care in the United 9858c(c)(3)(B)) is amended by striking ‘‘(II) a description of quantifiable, objec- States. ‘‘through (5)’’ and inserting ‘‘through (7)’’. tive measures for evaluating the quality of ‘‘(b) COLLECTION OF INFORMATION.—The SEC. 203. AUTHORIZATION OF APPROPRIATIONS. child care services separately with respect to Secretary may utilize the national child care Section 658B of the Child Care and Devel- the activities listed in each of such para- data system available through resource and opment Block Grant Act of 1990 (42 U.S.C. graphs that the State will use to evaluate its referral organizations at the local, State, 9858) is amended— progress in improving the quality of such and national level to collect the information (1) by striking ‘‘is’’ and inserting ‘‘are’’, child care services; required by subsection (a)(2).’’ and ‘‘(III) a list of State-developed child care SEC. 207. DEFINITIONS. (2) by striking ‘‘$1,000,000,000 for each of the service quality targets for such fiscal year fiscal years 1996 through 2002’’ and inserting quantified on the basis of such measures; and Section 658P(4)(B) of the Child Care and ‘‘$2,100,000,000 for fiscal year 2005, ‘‘(IV) for each fiscal year after fiscal year Development Block Grant Act of 1990 (42 $2,300,000,000 for fiscal year 2006, $2,500,000,000 2006, a report on the progress made to U.S.C. 9858N(4)(B)) is amended by striking for fiscal year 2007, $2,700,000,000 for fiscal achieve such targets during the then pre- ‘‘85 percent of the State median income’’ and year 2008, $2,900,000,000 for fiscal year 2009, ceding fiscal year. inserting ‘‘income levels as established by the State, prioritized by need,’’. and $3,100,000,000 for fiscal year 2010’’. ‘‘(iii) RULE OF CONSTRUCTION.—Nothing in SEC. 204. APPLICATION AND PLAN. this subparagraph shall be construed to re- SEC. 208. ENTITLEMENT FUNDING. Section 658E(c)(2) of the Child Care and De- quire that the State apply measures for eval- Section 418(a)(3) (42 U.S.C. 618(a)(3)) is velopment Block Grant Act of 1990 (42 U.S.C. uating quality to specific types of child care amended— 9858C(c)(2)) is amended— providers. (1) by striking ‘‘and’’ at the end of subpara- (1) by amending subparagraph (D) to read ‘‘(L) ACCESS TO CARE FOR CERTAIN POPU- graph (E); as follows: LATIONS.—Demonstrate how the State is ad- (2) by striking the period at the end of sub- ‘‘(D) CONSUMER AND CHILD CARE PROVIDER dressing the child care needs of parents eligi- paragraph (F) and inserting ‘‘; and’’; and EDUCATION INFORMATION.—Certify that the ble for child care services for which financial (3) by adding at the end the following: State will collect and disseminate, through assistance is provided under this subchapter ‘‘(G) $2,917,000,000 for each of fiscal years resource and referral services and other who have children with special needs, work 2006 through 2010.’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00167 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S274 CONGRESSIONAL RECORD — SENATE January 24, 2005 TITLE III—CHILD SUPPORT gram funded under part A and for whom the (1) in paragraph (1)(A)(ii)(V), by striking SEC. 301. FEDERAL MATCHING FUNDS FOR LIM- State has collected at least $500 of support, all that follows ‘‘Armed Forces’’ and insert- ITED PASS THROUGH OF CHILD SUP- the State shall impose an annual fee of $25 ing a semicolon; and PORT PAYMENTS TO FAMILIES RE- for each case in which services are furnished, (2) by adding at the end the following: CEIVING TANF. which shall be retained by the State from ‘‘(3) LIMITATIONS WITH RESPECT TO COM- (a) IN GENERAL.—Section 457(a) (42 U.S.C. support collected on behalf of the individual PENSATION PAID TO VETERANS FOR SERVICE- 657(a)) is amended— (but not from the 1st $500 so collected), paid CONNECTED DISABILITIES.—Notwithstanding (1) in paragraph (1)(A), by inserting ‘‘sub- by the individual applying for the services, any other provision of this section: ject to paragraph (7)’’ before the semicolon; recovered from the absent parent, or paid by ‘‘(A) Compensation described in paragraph and the State out of its own funds (the payment (1)(A)(ii)(V) shall not be subject to with- (2) by adding at the end the following: of which from State funds shall not be con- holding pursuant to this section— ‘‘(7) FEDERAL MATCHING FUNDS FOR LIMITED sidered as an administrative cost of the ‘‘(i) for payment of alimony; or PASS THROUGH OF CHILD SUPPORT PAYMENTS State for the operation of the plan, and such ‘‘(ii) for payment of child support if the in- TO FAMILIES RECEIVING TANF.—Notwith- fees shall be considered income to the pro- dividual is fewer than 60 days in arrears in standing paragraph (1), a State shall not be gram);’’. payment of the support. required to pay to the Federal Government (b) CONFORMING AMENDMENT.—Section ‘‘(B) Not more than 50 percent of any pay- the Federal share of an amount collected 457(a)(3) (42 U.S.C. 657(a)(3)) is amended to ment of compensation described in para- during a month on behalf of a family that is read as follows: graph (1)(A)(ii)(V) may be withheld pursuant a recipient of assistance under the State pro- ‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST- to this section.’’. gram funded under part A, to the extent ANCE.—In the case of any other family, the (b) EFFECTIVE DATE.—The amendments that— State shall distribute to the family the por- made by subsection (a) shall take effect on ‘‘(A) the State distributes the amount to tion of the amount so collected that remains October 1, 2007. the family; after withholding any fee pursuant to sec- ‘‘(B) the total of the amounts so distrib- SEC. 309. IMPROVING FEDERAL DEBT COLLEC- tion 454(6)(B)(ii).’’. TION PRACTICES. uted to the family during the month— (c) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—Section 3716(h)(3) of title ‘‘(i) exceeds the amount (if any) that, as of made by this section shall take effect on Oc- December 31, 2001, was required under State 31, United States Code, is amended to read as tober 1, 2006. follows: law to be distributed to a family under para- SEC. 305. REPORT ON UNDISTRIBUTED CHILD graph (1)(B); and ‘‘(3) In applying this subsection with re- SUPPORT PAYMENTS. spect to any debt owed to a State, other than ‘‘(ii) does not exceed the greater of— Not later than 6 months after the date of ‘‘(I) $100; or past due support being enforced by the State, the enactment of this Act, the Secretary of subsection (c)(3)(A) shall not apply. Sub- ‘‘(II) $50 plus the amount described in Health and Human Services shall submit to clause (i); and section (c)(3)(A) shall apply with respect to the Committee on Ways and Means of the past due support being enforced by the State ‘‘(C) the amount is disregarded in deter- House of Representatives and the Committee mining the amount and type of assistance notwithstanding any other provision of law, on Finance of the Senate a report on the pro- including sections 207 and 1631(d)(1) of the provided to the family under the State pro- cedures that the States use generally to lo- gram funded under part A.’’. Social Security Act (42 U.S.C. 407 and cate custodial parents for whom child sup- 1383(d)(1)), section 413(b) of Public law 91–173 (b) APPLICABILITY.—The amendments made port has been collected but not yet distrib- by subsection (a) shall apply to amounts dis- (30 U.S.C. 923(b)), and section 14 of the Act of uted. The report shall include an estimate of tributed on or after October 1, 2007. August 29, 1935 (45 U.S.C. 231m).’’. the total amount of undistributed child sup- (b) EFFECTIVE DATE.—The amendment SEC. 302. STATE OPTION TO PASS THROUGH ALL port and the average length of time it takes CHILD SUPPORT PAYMENTS TO FAM- made by subsection (a) shall take effect on ILIES THAT FORMERLY RECEIVED undistributed child support to be distributed. October 1, 2006. TANF. To the extent the Secretary deems appro- priate, the Secretary shall include in the re- SEC. 310. MAINTENANCE OF TECHNICAL ASSIST- (a) IN GENERAL.—Section 457(a) (42 U.S.C. ANCE FUNDING. port recommendations as to whether addi- 657(a)), as amended by section 301(a) of this Section 452(j) (42 U.S.C. 652(j)) is amended tional procedures should be established at Act, is amended— by inserting ‘‘or the amount appropriated the State or Federal level to expedite the (1) in paragraph (2)(B), in the matter pre- under this paragraph for fiscal year 2002, payment of undistributed child support. ceding clause (i), by inserting ‘‘, except as whichever is greater,’’ before ‘‘which shall be provided in paragraph (8),’’ after ‘‘shall’’; and SEC. 306. DECREASE IN AMOUNT OF CHILD SUP- available’’. (2) by adding at the end the following: PORT ARREARAGE TRIGGERING SEC. 311. MAINTENANCE OF FEDERAL PARENT ‘‘(8) STATE OPTION TO PASS THROUGH ALL PASSPORT DENIAL. LOCATOR SERVICE FUNDING. CHILD SUPPORT PAYMENTS TO FAMILIES THAT (a) IN GENERAL.—Section 452(k)(1) (42 Section 453(o) (42 U.S.C. 653(o)) is amend- FORMERLY RECEIVED TANF.—In lieu of apply- U.S.C. 652(k)(1)) is amended by striking ed— ing paragraph (2) to any family described in ‘‘$5,000’’ and inserting ‘‘$2,500’’. (1) in the 1st sentence, by inserting ‘‘or the paragraph (2), a State may distribute to the (b) CONFORMING AMENDMENT.—Section amount appropriated under this paragraph family any amount collected during a month 454(31) (42 U.S.C. 654(31)) is amended by strik- for fiscal year 2002, whichever is greater,’’ on behalf of the family.’’. ing ‘‘$5,000’’ and inserting ‘‘$2,500’’. (b) APPLICABILITY.—The amendments made (c) EFFECTIVE DATE.—The amendments before ‘‘which shall be available’’; and by subsection (a) shall apply to amounts dis- made by this section shall take effect on Oc- (2) in the 2nd sentence, by striking ‘‘for tributed on or after October 1, 2007. tober 1, 2006. each of fiscal years 1997 through 2001’’. SEC. 303. MANDATORY REVIEW AND ADJUST- SEC. 307. USE OF TAX REFUND INTERCEPT PRO- TITLE IV—CHILD WELFARE GRAM TO COLLECT PAST-DUE CHILD MENT OF CHILD SUPPORT ORDERS SEC. 401. EXTENSION OF AUTHORITY TO AP- SUPPORT ON BEHALF OF CHILDREN FOR FAMILIES RECEIVING TANF. PROVE DEMONSTRATION PROJECTS. (a) IN GENERAL.—Section 466(a)(10)(A)(i) (42 WHO ARE NOT MINORS. Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is U.S.C. 666(a)(10)(A)(i)) is amended— (a) IN GENERAL.—Section 464 (42 U.S.C. 664) amended by striking ‘‘2002’’ and inserting (1) by striking ‘‘parent, or,’’ and inserting is amended— ‘‘2010’’. ‘‘parent or’’; and (1) in subsection (a)(2)(A), by striking ‘‘(as (2) by striking ‘‘upon the request of the that term is defined for purposes of this SEC. 402. ELIMINATION OF LIMITATION ON NUM- State agency under the State plan or of ei- paragraph under subsection (c))’’; and BER OF WAIVERS. ther parent,’’. (2) in subsection (c)— Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)) is (b) EFFECTIVE DATE.—The amendments (A) in paragraph (1)— amended by striking ‘‘not more than 10’’. made by subsection (a) shall take effect on (i) by striking ‘‘(1) Except as provided in SEC. 403. ELIMINATION OF LIMITATION ON NUM- October 1, 2007. paragraph (2), as used in’’ and inserting ‘‘In’’; BER OF STATES THAT MAY BE SEC. 304. MANDATORY FEE FOR SUCCESSFUL and GRANTED WAIVERS TO CONDUCT CHILD SUPPORT COLLECTION FOR (ii) by inserting ‘‘(whether or not a DEMONSTRATION PROJECTS ON SAME TOPIC. FAMILY THAT HAS NEVER RECEIVED minor)’’ after ‘‘a child’’ each place it ap- TANF. pears; and Section 1130 (42 U.S.C. 1320a–9) is amended (a) IN GENERAL.—Section 454(6)(B) (42 (B) by striking paragraphs (2) and (3). by adding at the end the following: U.S.C. 654(6)(B)) is amended— (b) EFFECTIVE DATE.—The amendments ‘‘(h) NO LIMIT ON NUMBER OF STATES THAT (1) by inserting ‘‘(i)’’ after ‘‘(B)’’; made by subsection (a) shall take effect on MAY BE GRANTED WAIVERS TO CONDUCT SAME (2) by redesignating clauses (i) and (ii) as October 1, 2007. OR SIMILAR DEMONSTRATION PROJECTS.—The subclauses (I) and (II), respectively; Secretary shall not refuse to grant a waiver SEC. 308. GARNISHMENT OF COMPENSATION (3) by adding ‘‘and’’ after the semicolon; PAID TO VETERANS FOR SERVICE- to a State under this section on the grounds and CONNECTED DISABILITIES IN that a purpose of the waiver or of the dem- (4) by adding after and below the end the ORDER TO ENFORCE CHILD SUP- onstration project for which the waiver is following new clause: PORT OBLIGATIONS. necessary would be the same as or similar to ‘‘(ii) in the case of an individual who has (a) IN GENERAL.—Section 459(h) (42 U.S.C. a purpose of another waiver or project that never received assistance under a State pro- 659(h)) is amended— is or may be conducted under this section.’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00168 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S275 SEC. 404. ELIMINATION OF LIMITATION ON NUM- welfare dependency, promoting child well- the Office of Management and Budget, that BER OF WAIVERS THAT MAY BE being, or helping build stronger families, the proposed project is reasonably expected GRANTED TO A SINGLE STATE FOR using innovative approaches to strengthen to meet the applicable cost neutrality re- DEMONSTRATION PROJECTS. service systems and provide more coordi- quirements of subsection (d)(4). Section 1130 (42 U.S.C. 1320a–9) is further nated and effective service delivery. (6) EVALUATION AND REPORTS.—An assur- amended by adding at the end the following: (b) DEFINITIONS.—In this section: ance that the applicant will conduct ongoing ‘‘(i) NO LIMIT ON NUMBER OF WAIVERS (1) ADMINISTERING SECRETARY.—The term and final evaluations of the project, and GRANTED TO, OR DEMONSTRATION PROJECTS ‘‘administering Secretary’’ means, with re- make interim and final reports to the admin- THAT MAY BE CONDUCTED BY, A SINGLE spect to a qualified program, the head of the istering Secretary, at such times and in such STATE.—The Secretary shall not impose any Federal agency responsible for administering manner as the administering Secretary may limit on the number of waivers that may be the program. require. granted to a State, or the number of dem- (2) QUALIFIED PROGRAM.—The term ‘‘quali- (7) PUBLIC HOUSING AGENCY PLAN.—In the onstration projects that a State may be au- fied program’’ means— case of an application proposing a dem- thorized to conduct, under this section.’’. (A) a program under part A of title IV of onstration project that includes activities SEC. 405. STREAMLINED PROCESS FOR CONSID- the Social Security Act; referred to in subsection (b)(2)(H) of this sec- ERATION OF AMENDMENTS TO AND (B) the program under title XX of such tion— EXTENSIONS OF DEMONSTRATION Act; PROJECTS REQUIRING WAIVERS. (A) a certification that the applicable an- (C) activities funded under title I of the nual public housing agency plan of any agen- Section 1130 (42 U.S.C. 1320a–9) is further Workforce Investment Act of 1998, except amended by adding at the end the following: cy affected by the project that is approved subtitle C of such title; under section 5A of the United States Hous- ‘‘(j) STREAMLINED PROCESS FOR CONSIDER- (D) a demonstration project authorized ATION OF AMENDMENTS AND EXTENSIONS.—The ing Act of 1937 (42 U.S.C. 1437c–1) by the Sec- under section 505 of the Family Support Act retary includes the information specified in Secretary shall develop a streamlined proc- of 1988; ess for consideration of amendments and ex- paragraphs (1) through (4) of this subsection; (E) activities funded under the Wagner- and tensions proposed by States to demonstra- Peyser Act; tion projects conducted under this section.’’. (B) any resident advisory board rec- (F) activities funded under the Adult Edu- ommendations, and other information, relat- SEC. 406. AVAILABILITY OF REPORTS. cation and Family Literacy Act; ing to the project that, pursuant to section Section 1130 (42 U.S.C. 1320a–9) is further (G) activities funded under the Child Care 5A(e)(2) of the United States Housing Act of amended by adding at the end the following: and Development Block Grant Act of 1990; 1937 (42 U.S.C. 1437c–1(e)(2), is required to be ‘‘(k) AVAILABILITY OF REPORTS.—The Sec- (H) activities funded under the United retary shall make available to any State or included in the public housing agency plan of States Housing Act of 1937 (42 U.S.C. 1437 et any public housing agency affected by the other interested party any report provided to seq.), except that such term shall not in- the Secretary under subsection (f)(2), and project. clude— (8) OTHER INFORMATION AND ASSURANCES.— any evaluation or report made by the Sec- (i) any program for rental assistance under retary with respect to a demonstration Such other information and assurances as section 8 of such Act (42 U.S.C. 1437f); and the administering Secretary may require. project conducted under this section, with a (ii) the program under section 7 of such focus on information that may promote best Act (42 U.S.C. 1437e) for designating public (d) APPROVAL OF APPLICATIONS.— practices and program improvements.’’. housing for occupancy by certain popu- (1) IN GENERAL.—The administering Sec- SEC. 407. TECHNICAL CORRECTION. lations; retary with respect to a qualified program Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is (I) activities funded under title I, II, III, or that is identified in an application submitted amended by striking ‘‘422(b)(9)’’ and insert- IV of the McKinney-Vento Homeless Assist- pursuant to subsection (c) may approve the ing ‘‘422(b)(10)’’. ance Act (42 U.S.C. 11301 et seq.); or application and, except as provided in para- (J) the food stamp program as defined in graph (2), waive any requirement applicable TITLE V—SUPPLEMENTAL SECURITY to the program, to the extent consistent INCOME section 3(h) of the Food Stamp Act of 1977 (7 U.S.C. 2012(h)). with this section and necessary and appro- SEC. 501. REVIEW OF STATE AGENCY BLINDNESS priate for the conduct of the demonstration AND DISABILITY DETERMINATIONS. (c) APPLICATION REQUIREMENTS.—The head of a State entity or of a sub-State entity ad- project proposed in the application, if the ad- Section 1633 (42 U.S.C. 1383b) is amended by ministering 2 or more qualified programs ministering Secretary determines that the adding at the end the following: proposed to be included in a demonstration project— ‘‘(e)(1) The Commissioner of Social Secu- project under this section shall (or, if the (A) has a reasonable likelihood of achiev- rity shall review determinations, made by project is proposed to include qualified pro- ing the objectives of the programs to be in- State agencies pursuant to subsection (a) in grams administered by 2 or more such enti- cluded in the project; connection with applications for benefits ties, the heads of the administering entities (B) may reasonably be expected to meet under this title on the basis of blindness or (each of whom shall be considered an appli- the applicable cost neutrality requirements disability, that individuals who have at- cant for purposes of this section) shall joint- of paragraph (4), as determined by the Direc- tained 18 years of age are blind or disabled as ly) submit to the administering Secretary of tor of the Office of Management and Budget; of a specified onset date. The Commissioner each such program an application that con- and of Social Security shall review such a deter- tains the following: (C) includes the coordination of 2 or more mination before any action is taken to im- (1) PROGRAMS INCLUDED.—A statement qualified programs. plement the determination. identifying each qualified program to be in- (2) PROVISIONS EXCLUDED FROM WAIVER AU- ‘‘(2)(A) In carrying out paragraph (1), the cluded in the project, and describing how the THORITY.—A waiver shall not be granted Commissioner of Social Security shall re- purposes of each such program will be under paragraph (1)— view— achieved by the project. (A) with respect to any provision of law re- ‘‘(i) at least 20 percent of all determina- (2) POPULATION SERVED.—A statement iden- lating to— tions referred to in paragraph (1) that are tifying the population to be served by the (i) civil rights or prohibition of discrimina- made in fiscal year 2006; project and specifying the eligibility criteria tion; ‘‘(ii) at least 40 percent of all such deter- to be used. (ii) purposes or goals of any program; minations that are made in fiscal year 2007; (3) DESCRIPTION AND JUSTIFICATION.—A de- (iii) maintenance of effort requirements; and tailed description of the project, including— (iv) health or safety; ‘‘(iii) at least 50 percent of all such deter- (A) a description of how the project is ex- (v) labor standards under the Fair Labor minations that are made in fiscal year 2008 pected to improve or enhance achievement of Standards Act of 1938; or or thereafter. the purposes of the programs to be included (vi) environmental protection; ‘‘(B) In carrying out subparagraph (A), the in the project, from the standpoint of qual- (B) with respect to section 241(a) of the Commissioner of Social Security shall, to ity, of cost-effectiveness, or of both; and Adult Education and Family Literacy Act; the extent feasible, select for review the de- (B) a description of the performance objec- (C) in the case of a program under the terminations which the Commissioner of So- tives for the project, including any proposed United States Housing Act of 1937 (42 U.S.C. cial Security identifies as being the most modifications to the performance measures 1437 et seq.), with respect to any requirement likely to be incorrect.’’. and reporting requirements used in the pro- under section 5A of such Act (42 U.S.C. 1437c– TITLE VI—STATE AND LOCAL FLEXIBILITY grams. 1; relating to public housing agency plans SEC. 601. PROGRAM COORDINATION DEM- (4) WAIVERS REQUESTED.—A description of and resident advisory boards); ONSTRATION PROJECTS. the statutory and regulatory requirements (D) in the case of a program under the (a) PURPOSE.—The purpose of this section with respect to which a waiver is requested Workforce Investment Act, with respect to is to establish a program of demonstration in order to carry out the project, and a jus- any requirement the waiver of which would projects in a State or portion of a State to tification of the need for each such waiver. violate section 189(i)(4)(A)(i) of such Act; coordinate multiple public assistance, work- (5) COST NEUTRALITY.—Such information (E) in the case of the food stamp program force development, and other programs, for and assurances as necessary to establish to (as defined in section 3(h) of the Food Stamp the purpose of supporting working individ- the satisfaction of the administering Sec- Act of 1977 (7 U.S.C. 2012(h)), with respect to uals and families, helping families escape retary, in consultation with the Director of any requirement under—

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00169 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S276 CONGRESSIONAL RECORD — SENATE January 24, 2005 (i) section 6 (if waiving a requirement (i) the administering Secretary is deemed States in accordance with this section to under such section would have the effect of to have approved the application for such pe- provide— expanding eligibility for the program), 7(b) riod as is requested in the application, ex- ‘‘(1) food assistance to needy individuals or 16(c) of the Food Stamp Act of 1977 (7 cept to the extent inconsistent with sub- and families residing in the State; U.S.C. 2011 et seq.); or section (e); and ‘‘(2) funds to operate an employment and (ii) title IV of the Personal Responsibility (ii) any waiver requested in the application training program under subsection (g) for and Work Opportunity Reconciliation Act of which applies to a qualified program that is needy individuals under the program; and 1996 (8 U.S.C. 1601 et seq.); identified in the application and is adminis- ‘‘(3) funds for administrative costs incurred (F) with respect to any requirement that a tered by the administering Secretary is in providing the assistance. State pass through to a sub-State entity part deemed to be granted, except to the extent ‘‘(b) ELECTION.— or all of an amount paid to the State; inconsistent with paragraph (2) or (4) of this ‘‘(1) IN GENERAL.—A State may elect to (G) if the waiver would waive any funding subsection. participate in the program established under restriction or limitation provided in an ap- (B) DEADLINE EXTENDED IF ADDITIONAL IN- subsection (a). propriations Act, or would have the effect of FORMATION IS SOUGHT.—The 90-day period re- ‘‘(2) ELECTION REVOCABLE.—A State that transferring appropriated funds from 1 ap- ferred to in subparagraph (A) shall not in- elects to participate in the program estab- propriations account to another; or clude any period that begins with the date lished under subsection (a) may subsequently (H) except as otherwise provided by stat- the Secretary requests the applicant to pro- reverse the election of the State only once ute, if the waiver would waive any funding vide additional information with respect to thereafter. Following the reversal, the State restriction applicable to a program author- the application and ends with the date the shall only be eligible to participate in the ized under an Act which is not an appropria- additional information is provided. food stamp program in accordance with the tions Act (but not including program re- (e) DURATION OF PROJECTS.—A demonstra- other sections of this Act and shall not re- quirements such as application procedures, tion project under this section may be ap- ceive a block grant under this section. performance standards, reporting require- proved for a term of not more than 5 years. ‘‘(3) PROGRAM EXCLUSIVE.—A State that is EPORTS TO CONGRESS.— ments, or eligibility standards), or would (f) R participating in the program established (1) REPORT ON DISPOSITION OF APPLICA- have the effect of transferring funds from a under subsection (a) shall not be subject to, TIONS.—Within 90 days after an admin- program for which there is direct spending or receive any benefit under, this Act except istering Secretary receives an application (as defined in section 250(c)(8) of the Bal- as provided in this section. anced Budget and Emergency Deficit Control submitted pursuant to this section, the ad- ‘‘(c) LEAD AGENCY.— Act of 1985) to another program. ministering Secretary shall submit to each ‘‘(1) DESIGNATION.—A State desiring to par- (3) AGREEMENT OF EACH ADMINISTERING SEC- Committee of the Congress which has juris- ticipate in the program established under RETARY REQUIRED.— diction over a qualified program identified in subsection (a) shall designate, in an applica- (A) IN GENERAL.—An applicant may not the application notice of the receipt, a de- tion submitted to the Secretary under sub- conduct a demonstration project under this scription of the decision of the administering section (d)(1), an appropriate State agency section unless each administering Secretary Secretary with respect to the application, that complies with paragraph (2) to act as with respect to any program proposed to be and the reasons for approving or dis- the lead agency for the State. included in the project has approved the ap- approving the application. ‘‘(2) DUTIES.—The lead agency shall— plication to conduct the project. (2) REPORTS ON PROJECTS.—Each admin- ‘‘(A) administer, either directly, through (B) AGREEMENT WITH RESPECT TO FUNDING istering Secretary shall provide annually to other State agencies, or through local agen- AND IMPLEMENTATION.—Before approving an the Congress a report concerning demonstra- cies, the assistance received under this sec- application to conduct a demonstration tion projects approved under this section, in- tion by the State; project under this section, an administering cluding— ‘‘(B) develop the State plan to be sub- Secretary shall have in place an agreement (A) the projects approved for each appli- mitted to the Secretary under subsection with the applicant with respect to the pay- cant; (d)(1); and ment of funds and responsibilities required of (B) the number of waivers granted under ‘‘(C) coordinate the provision of food as- the administering Secretary with respect to this section, and the specific statutory provi- sistance under this section with other Fed- the project. sions waived; eral, State, and local programs. (4) COST-NEUTRALITY REQUIREMENT.— (C) how well each project for which a waiv- (A) GENERAL RULE.—Notwithstanding any er is granted is improving or enhancing pro- ‘‘(d) APPLICATION AND PLAN.— other provision of law (except subparagraph gram achievement from the standpoint of ‘‘(1) APPLICATION.—To be eligible to receive (B)), the total of the amounts that may be quality, cost-effectiveness, or both; assistance under this section, a State shall paid by the Federal Government for a fiscal (D) how well each project for which a waiv- prepare and submit to the Secretary an ap- year with respect to the programs in the er is granted is meeting the performance ob- plication at such time, in such manner, and State in which an entity conducting a dem- jectives specified in subsection (c)(3)(B); containing such information as the Sec- onstration project under this section is lo- (E) how each project for which a waiver is retary shall by regulation require, includ- cated that are affected by the project shall granted is conforming with the cost-neu- ing— not exceed the estimated total amount that trality requirements of subsection (d)(4); and ‘‘(A) an assurance that the State will com- the Federal Government would have paid for (F) to the extent the administering Sec- ply with the requirements of this section; the fiscal year with respect to the programs retary deems appropriate, recommendations ‘‘(B) a State plan that meets the require- if the project had not been conducted, as de- for modification of programs based on out- ments of paragraph (2); and termined by the Director of the Office of comes of the projects. ‘‘(C) an assurance that the State will com- Management and Budget. (g) AMENDMENT TO UNITED STATES HOUSING ply with the requirements of the State plan (B) SPECIAL RULE.—If an applicant submits ACT OF 1937.—Section 5A(d) of the United under paragraph (2). to the Director of the Office of Management States Housing Act of 1937 (42 U.S.C. 1437c– ‘‘(2) REQUIREMENTS OF PLAN.— and Budget a request to apply the rules of 1(d)) is amended— ‘‘(A) LEAD AGENCY.—The State plan shall this subparagraph to the programs in the (1) by redesignating paragraph (18) as para- identify the lead agency. State in which the applicant is located that graph (19); and ‘‘(B) USE OF BLOCK GRANT FUNDS.—The are affected by a demonstration project pro- (2) by inserting after paragraph (17) the fol- State plan shall provide that the State shall posed in an application submitted by the ap- lowing new paragraph: use the amounts provided to the State for plicant pursuant to this section, during such ‘‘(18) PROGRAM COORDINATION DEMONSTRA- each fiscal year under this section— period of not more than 5 consecutive fiscal TION PROJECTS.—In the case of an agency ‘‘(i) to provide food assistance to needy in- years in which the project is in effect, and that administers an activity referred to in dividuals and families residing in the State, the Director determines, on the basis of sup- section 601(b)(2)(H) of the Personal Responsi- other than residents of institutions who are porting information provided by the appli- bility, Work, and Family Promotion Act of ineligible for food stamps under section 3(i); cant, to grant the request, then, notwith- 2005 that, during such fiscal year, will be in- ‘‘(ii) to administer an employment and standing any other provision of law, the cluded in a demonstration project under sec- training program under subsection (g) for total of the amounts that may be paid by the tion 601 of such Act, the information that is needy individuals under the program and to Federal Government for the period with re- required to be included in the application for provide reimbursements to needy individuals spect to the programs shall not exceed the the project pursuant to paragraphs (1) and families as would be allowed under sec- estimated total amount that the Federal through (4) of section 601(b) of such Act.’’. tion 16(h)(3); and Government would have paid for the period SEC. 602. STATE FOOD ASSISTANCE BLOCK ‘‘(iii) to pay administrative costs incurred with respect to the programs if the project GRANT DEMONSTRATION PROJECT. in providing the assistance. had not been conducted. The Food Stamp Act of 1977 (7 U.S.C. 2011 ‘‘(C) ASSISTANCE FOR ENTIRE STATE.—The (5) 90-DAY APPROVAL DEADLINE.— et seq.) is amended by adding at the end the State plan shall provide that benefits under (A) IN GENERAL.—If an administering Sec- following: this section shall be available throughout retary receives an application to conduct a ‘‘SEC. 28. STATE FOOD ASSISTANCE BLOCK the entire State. demonstration project under this section and GRANT DEMONSTRATION PROJECT. ‘‘(D) NOTICE AND HEARINGS.—The State does not disapprove the application within 90 ‘‘(a) ESTABLISHMENT.—The Secretary shall plan shall provide that an individual or fam- days after the receipt, then— establish a program to make grants to ily who applies for, or receives, assistance

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00170 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S277 under this section shall be provided with no- that the noncompliance will be promptly audit to the legislature of the State and to tice of, and an opportunity for a hearing on, corrected. the Secretary. any action under this section that adversely ‘‘(B) OTHER SANCTIONS.—In the case of a ‘‘(5) REPAYMENT OF AMOUNTS.—Each State affects the individual or family. finding of noncompliance made pursuant to shall repay to the United States any ‘‘(E) OTHER ASSISTANCE.— subparagraph (A), the Secretary may, in ad- amounts determined through an audit under ‘‘(i) COORDINATION.—The State plan may dition to, or in lieu of, imposing the sanc- this section to have not been expended in ac- coordinate assistance received under this tions described in subparagraph (A), impose cordance with this section or to have not section with assistance provided under the other appropriate sanctions, including been expended in accordance with the State State program funded under part A of title recoupment of money improperly expended plan, or the Secretary may offset the IV of the Social Security Act (42 U.S.C. 601 for purposes prohibited or not authorized by amounts against any other amount paid to et seq.). this section and disqualification from the re- the State under this section. ‘‘(ii) PENALTIES.—If an individual or family ceipt of financial assistance under this sec- ‘‘(k) NONDISCRIMINATION.— is penalized for violating part A of title IV of tion. ‘‘(1) IN GENERAL.—The Secretary shall not the Act, the State plan may reduce the ‘‘(C) NOTICE.—The notice required under provide financial assistance for any program, amount of assistance provided under this subparagraph (A) shall include a specific project, or activity under this section if any section or otherwise penalize the individual identification of any additional sanction person with responsibilities for the operation or family. being imposed under subparagraph (B). of the program, project, or activity discrimi- ‘‘(F) ELIGIBILITY LIMITATIONS.—The State ‘‘(3) ISSUANCE OF REGULATIONS.—The Sec- nates with respect to the program, project, plan shall describe the income and resource retary shall establish by regulation proce- or activity because of race, religion, color, eligibility limitations that are established dures for— national origin, sex, or disability. for the receipt of assistance under this sec- ‘‘(A) receiving, processing, and deter- ‘‘(2) ENFORCEMENT.—The powers, remedies, tion. mining the validity of complaints con- and procedures set forth in title VI of the ‘‘(G) RECEIVING BENEFITS IN MORE THAN 1 cerning any failure of a State to comply with Civil Rights Act of 1964 (42 U.S.C. 2000d et JURISDICTION.—The State plan shall establish the State plan or any requirement of this seq.) may be used by the Secretary to en- a system to verify and otherwise ensure that section; and force paragraph (1). no individual or family shall receive benefits ‘‘(B) imposing sanctions under this section. ‘‘(l) ALLOTMENTS.— under this section in more than 1 jurisdic- ‘‘(i) PAYMENTS.— ‘‘(1) DEFINITION OF STATE.—In this section, tion within the State. ‘‘(1) IN GENERAL.—For each fiscal year, the the term ’State’ means each of the 50 States, ‘‘(H) PRIVACY.—The State plan shall pro- Secretary shall pay to a State that has an the District of Columbia, Guam, and the Vir- vide for safeguarding and restricting the use application approved by the Secretary under gin Islands of the United States. and disclosure of information about any indi- subsection (d)(3) an amount that is equal to ‘‘(2) STATE ALLOTMENT.— vidual or family receiving assistance under the allotment of the State under subsection ‘‘(A) IN GENERAL.—Except as provided in this section. (l)(2) for the fiscal year. subparagraph (B), from the amounts made ‘‘(I) OTHER INFORMATION.—The State plan ‘‘(2) METHOD OF PAYMENT.—The Secretary available under section 18 of this Act for shall contain such other information as may shall make payments to a State for a fiscal each fiscal year, the Secretary shall allot to be required by the Secretary. year under this section by issuing 1 or more each State participating in the program es- ‘‘(3) APPROVAL OF APPLICATION AND PLAN.— letters of credit for the fiscal year, with nec- tablished under subsection (a) an amount During fiscal years 2006 through 2010, the essary adjustments on account of overpay- that is equal to the sum of— Secretary may approve the applications and ments or underpayments, as determined by ‘‘(i) the greater of, as determined by the State plans that satisfy the requirements of the Secretary. Secretary— this section of not more than 5 States for a ‘‘(3) SPENDING OF FUNDS BY STATE.— ‘‘(I) the total dollar value of all benefits term of not more than 5 years. ‘‘(A) IN GENERAL.—Except as provided in issued under the food stamp program estab- ‘‘(e) CONSTRUCTION OF FACILITIES.—No subparagraph (B), payments to a State from lished under this Act by the State during fis- funds made available under this section shall an allotment under subsection (l)(2) for a fis- cal year 2005; or be expended for the purchase or improve- cal year may be expended by the State only ‘‘(II) the average per fiscal year of the ment of land, or for the purchase, construc- in the fiscal year. total dollar value of all benefits issued under tion, or permanent improvement of any ‘‘(B) CARRYOVER.—The State may reserve the food stamp program by the State during building or facility. up to 10 percent of an allotment under sub- each of fiscal years 2003 through 2005; and ‘‘(f) BENEFITS FOR ALIENS.—No individual section (l)(2) for a fiscal year to provide as- ‘‘(ii) the greater of, as determined by the shall be eligible to receive benefits under a sistance under this section in subsequent fis- Secretary— State plan approved under subsection (d)(3) cal years, except that the reserved funds ‘‘(I) the total amount received by the State if the individual is not eligible to participate may not exceed 30 percent of the total allot- for administrative costs and the employment in the food stamp program under title IV of ment received under this section for a fiscal and training program under subsections (a) the Personal Responsibility and Work Oppor- year. and (h), respectively, of section 16 of this Act tunity Reconciliation Act of 1996 (8 U.S.C. ‘‘(4) PROVISION OF FOOD ASSISTANCE.—A for fiscal year 2005; or 1601 et seq.). State may provide food assistance under this ‘‘(II) the average per fiscal year of the ‘‘(g) EMPLOYMENT AND TRAINING.—Each section in any manner determined appro- total amount received by the State for ad- State shall implement an employment and priate by the State to provide food assist- ministrative costs and the employment and training program for needy individuals under ance to needy individuals and families in the training program under subsections (a) and the program. State, such as electronic benefits transfer (h), respectively, of section 16 of this Act for ‘‘(h) ENFORCEMENT.— limited to food purchases, coupons limited to each of fiscal years 2003 through 2005. ‘‘(1) REVIEW OF COMPLIANCE WITH STATE food purchases, or direct provision of com- ‘‘(B) INSUFFICIENT FUNDS.—If the Secretary PLAN.—The Secretary shall review and mon- modities. finds that the total amount of allotments to itor State compliance with this section and ‘‘(5) DEFINITION OF FOOD ASSISTANCE.—In which States would otherwise be entitled for the State plan approved under subsection this section, the term ‘food assistance’ a fiscal year under subparagraph (A) will ex- (d)(3). means assistance that may be used only to ceed the amount of funds that will be made ‘‘(2) NONCOMPLIANCE.— obtain food, as defined in section 3(g). available to provide the allotments for the ‘‘(A) IN GENERAL.—If the Secretary, after ‘‘(j) AUDITS.— fiscal year, the Secretary shall reduce the al- reasonable notice to a State and opportunity ‘‘(1) REQUIREMENT.—After the close of each lotments made to States under this sub- for a hearing, finds that— fiscal year, a State shall arrange for an audit section, on a pro rata basis, to the extent ‘‘(i) there has been a failure by the State to of the expenditures of the State during the necessary to allot under this subsection a comply substantially with any provision or program period from amounts received under total amount that is equal to the funds that requirement set forth in the State plan ap- this section. will be made available.’’. proved under subsection (d)(3); or ‘‘(2) INDEPENDENT AUDITOR.—An audit TITLE VII—ABSTINENCE EDUCATION ‘‘(ii) in the operation of any program or ac- under this section shall be conducted by an SEC. 701. EXTENSION OF ABSTINENCE EDU- tivity for which assistance is provided under entity that is independent of any agency ad- CATION PROGRAM. this section, there is a failure by the State ministering activities that receive assist- (a) EXTENSION OF APPROPRIATIONS.— to comply substantially with any provision ance under this section and be in accordance (1) IN GENERAL.—Section 510(d) (42 U.S.C. of this section, the Secretary shall notify the with generally accepted auditing principles. 710(d)) is amended in the first sentence by in- State of the finding and that no further pay- ‘‘(3) PAYMENT ACCURACY.—Each annual serting before the period the following: ‘‘and ments will be made to the State under this audit under this section shall include an for each of the fiscal years 2006 through section (or, in the case of noncompliance in audit of payment accuracy under this sec- 2010’’. the operation of a program or activity, that tion that shall be based on a statistically (2) ADDITIONAL FUNDS FOR FISCAL YEAR no further payments to the State will be valid sample of the caseload in the State. 2005.— made with respect to the program or activ- ‘‘(4) SUBMISSION.—Not later than 30 days (A) ADDITIONAL FUNDS.—Activities author- ity) until the Secretary is satisfied that after the completion of an audit under this ized by section 510 of the Social Security Act there is no longer any failure to comply or section, the State shall submit a copy of the shall continue through September 30, 2005, in

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00171 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S278 CONGRESSIONAL RECORD — SENATE January 24, 2005 the manner authorized for fiscal year 2004, SEC. 802. ADJUSTMENT TO PAYMENTS FOR MED- Canada as a minimal-risk region, and and out of any money in the Treasury of the ICAID ADMINISTRATIVE COSTS TO the importation into the United States PREVENT DUPLICATIVE PAYMENTS United States not otherwise appropriated, from Canada of certain bovine rumi- there are hereby appropriated such sums as AND TO FUND EXTENSION OF TRAN- SITIONAL MEDICAL ASSISTANCE. nant products during that calendar may be necessary for such purpose, in addi- (a) IN GENERAL.—Section 1903 (42 U.S.C. tion to other amounts appropriated for such year, unless country of origin labeling 1396b) is amended— purpose for fiscal year 2005. Grants and pay- is required for the retail sale of a cov- (1) in subsection (a)(7), by striking ‘‘section ments may be made pursuant to this author- ered commodity during that calendar 1919(g)(3)(B)’’ and inserting ‘‘subsection (x) ity through the fourth quarter of fiscal year and section 1919(g)(3)(C)’’; and year; to the Committee on Agriculture, 2005 at the level provided for such activities (2) by adding at the end the following: Nutrition, and Forestry. through the fourth quarter of fiscal year ‘‘(x) ADJUSTMENTS TO PAYMENTS FOR AD- Mr. DORGAN. Mr. President, I am an 2004. MINISTRATIVE COSTS TO FUND EXTENSION OF original cosponsor of legislation which (B) EFFECTIVE DATE.—Subparagraph (A) TRANSITIONAL MEDICAL ASSISTANCE.— was introduced today by Senators takes effect upon the date of the enactment ‘‘(1) REDUCTIONS IN PAYMENTS FOR ADMINIS- of this Act. JOHNSON and ENZI. This legislation re- TRATIVE COSTS.—Effective for each of the last quires that a mandatory system of (b) ALLOTMENT OF FUNDS.—Section 510(a) 2 calendar quarters in fiscal year 2005 and for country of-origin labeling be in place (42 U.S.C. 710(a)) is amended— each calendar quarter in fiscal year 2006, the (1) in the matter preceding paragraph (1), Secretary shall reduce the amount paid before the U.S. Department of Agri- by striking ‘‘an application for the fiscal under subsection (a)(7) to each State by an culture can open the border to imports year under section 505(a)’’ and inserting ‘‘, amount equal to 45 percent for calendar of live Canadian cattle. for the fiscal year, an application under sec- quarters in fiscal year 2005, and 80 percent This legislation would not be nec- tion 505(a), and an application under this sec- for calendar quarters in fiscal year 2006, of essary if USDA and this Administra- tion (in such form and meeting such terms one-quarter of the annualized amount deter- tion were not furiously pushing to and conditions as determined appropriate by mined for the medicaid program under sec- the Secretary),’’; and allow live Canadian cattle into this tion 16(k)(2)(B) of the Food Stamp Act of 1977 country. I am very concerned that they (2) in paragraph (2), to read as follows: (7 U.S.C. 2025(k)(2)(B)). are doing this despite the most recent ‘‘(2) the percentage that would be deter- ‘‘(2) ALLOCATION OF ADMINISTRATIVE mined for the State under section COSTS.—None of the funds or expenditures discovery, just a few weeks ago, of two 502(c)(1)(B)(ii) if the calculation under such described in section 16(k)(5)(B) of the Food more Canadian cows infected with section took into consideration only those Stamp Act of 1977 (7 U.S.C. 2025(k)(5)(B)) may BSE. States that transmitted both such applica- be used to pay for costs— I believe that the decision to open tions for such fiscal year.’’. ‘‘(A) eligible for reimbursement under sub- the border to live Canadian cattle (c) REALLOTMENT OF FUNDS.—Section 510 section (a)(7) (or costs that would have been should be made based on sound science, (42 U.S.C. 710(a)) is amended by adding at the eligible for reimbursement but for this sub- not politics. The border should be end the following new subsection: section); and opened when science indicates that it ‘‘(e)(1) With respect to allotments under ‘‘(B) allocated for reimbursement to the subsection (a) for fiscal year 2006 and subse- program under this title under a plan sub- is safe to do so, and not before. quent fiscal years, the amount of any allot- mitted by a State to the Secretary to allo- I also believe that it is necessary ment to a State for a fiscal year that the cate administrative costs for public assist- that this country have a system of Secretary determines will not be required to ance programs; country-of-origin labeling in place be- carry out a program under this section dur- except that, for purposes of subparagraph fore the border is opened. That is the ing such fiscal year or the succeeding fiscal (A), the reference in clause (iii) of that sec- only way American consumers will be year shall be available for reallotment from tion to ‘subsection (a)’ is deemed a reference able to choose between beef raised in time to time during such fiscal years on such to subsection (a)(7) and clause (iv)(II) of that America and beef raised in Canada. dates as the Secretary may fix, to other section shall be applied as if ‘medicaid pro- Right now there is no way to tell the States that the Secretary determines— gram’ were substituted for ‘food stamp pro- ‘‘(A) require amounts in excess of amounts gram’.’’. difference. We must have country-of- previously allotted under subsection (a) to (b) EFFECTIVE DATE.—The amendments origin labeling in place before we allow carry out a program under this section; and made by subsection (a) shall take effect on Canadian cattle into this country, and ‘‘(B) will use such excess amounts during April 1, 2005. that is why I am cosponsoring this leg- such fiscal years. TITLE IX—EFFECTIVE DATE islation. ‘‘(2) Reallotments under paragraph (1) shall SEC. 901. EFFECTIVE DATE. be made on the basis of such States’ applica- (a) IN GENERAL.—Except as otherwise pro- By Mr. VITTER (for himself, Mr. tions under this section, after taking into vided in this Act, this Act and the amend- SALAZAR, Mr. THUNE, and Mr. consideration the population of low-income ments made by this Act shall take effect on DEMINT): children in each such State as compared October 1, 2005. S. 109. A bill entitled ‘‘Pharma- with the population of low-income children (b) EXCEPTION.—In the case of a State plan ceutical Market Access Act of 2005’’; to in all such States with respect to which a de- under part A or D of title IV of the Social termination under paragraph (1) has been the Committee on Health, Education, Security Act which the Secretary deter- Labor, and Pensions. made by the Secretary. mines requires State legislation in order for ‘‘(3) Any amount reallotted under para- the plan to meet the additional requirements Mr. VITTER. Mr. President, I ask graph (1) to a State is deemed to be part of imposed by the amendments made by this unanimous consent that the text of the its allotment under subsection (a).’’. Act, the effective date of the amendments bill be printed in the RECORD. (d) EFFECTIVE DATE.—The amendments imposing the additional requirements shall There being no objection, the bill was made by this section shall be effective with be 3 months after the first day of the first ordered to be printed in the RECORD, as respect to the program under section 510 of calendar quarter beginning after the close of follows: the Social Security Act for fiscal years 2006 the first regular session of the State legisla- S. 109 and succeeding fiscal years. ture that begins after the date of the enact- ment of this Act. For purposes of the pre- Be it enacted by the Senate and House of Rep- TITLE VIII—TRANSITIONAL MEDICAL ceding sentence, in the case of a State that resentatives of the United States of America in ASSISTANCE has a 2-year legislative session, each year of Congress assembled, SEC. 801. EXTENSION OF MEDICAID TRANSI- the session shall be considered to be a sepa- SECTION 1. SHORT TITLE. TIONAL MEDICAL ASSISTANCE PRO- rate regular session of the State legislature. This Act may be cited as the ‘‘Pharma- GRAM THROUGH FISCAL YEAR 2006. ceutical Market Access Act of 2005’’. (a) IN GENERAL.—Section 1925(f) (42 U.S.C. By Mr. JOHNSON (for himself, SEC. 2. FINDINGS. 1396r–6(f)) is amended by striking ‘‘2003’’ and Mr. ENZI, Mr. BINGAMAN, and Congress finds as follows: inserting ‘‘2006’’. Mr. DORGAN): (1) Americans unjustly pay up to 1000 per- (b) CONFORMING AMENDMENT.—Section S. 108. A bill to prohibit the oper- cent more to fill their prescriptions than 1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B)) is ation during a calendar year of the consumers in other countries. amended by striking ‘‘September 30, 2003’’ final rule issued by the Secretary of (2) The United States is the world’s largest and inserting ‘‘the last date (if any) on which Agriculture to establish standards for market for pharmaceuticals yet consumers section 1925 applies under subsection (f) of still pay the world’s highest prices. that section’’. the designation of minimal-risk re- (3) An unaffordable drug is neither safe nor (c) EFFECTIVE DATE.—The amendments gions for the introduction of bovine effective. Allowing and structuring the im- made by this section shall take effect on spongiform encephalopathy into the portation of prescription drugs ensures ac- April 1, 2005. United States, including designation of cess to affordable drugs, thus providing a

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00172 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S279 level of safety to American consumers they ‘‘(A) is approved under section 505(b)(1); istrant that relate to qualifying drugs, in- do not currently enjoy. and cluding each warehouse or other facility (4) According to the Congressional Budget ‘‘(B) is not— owned or controlled by, or operated for, the Office, American seniors alone will spend ‘‘(i) a drug manufactured through 1 or registrant; $1,800,000,000,000 on pharmaceuticals over the more biotechnology processes; ‘‘(B) An agreement by the registrant to— next 10 years. ‘‘(ii) a drug that is required to be refrig- ‘‘(i) make its places of business that relate (5) Allowing open pharmaceutical markets erated; or to qualifying drugs (including warehouses could save American consumers at least ‘‘(iii) a photoreactive drug. and other facilities owned or controlled by, $635,000,000,000 of their own money each year. ‘‘(7) QUALIFYING INTERNET PHARMACY.—The or operated for, the exporter) and records SEC. 3. PURPOSES. term ‘qualifying Internet pharmacy’ means a available to the Secretary for on-site inspec- The purposes of this Act are as follows: registered exporter that dispenses qualifying tions, without prior notice, for the purpose (1) To give all Americans immediate relief drugs to individuals over an Internet of determining whether the registrant is in from the outrageously high cost of pharma- website. compliance with this Act’s requirements; ceuticals. ‘‘(8) QUALIFYING LABORATORY.—The term ‘‘(ii) export only qualifying drugs; (2) To reverse the perverse economics of ‘qualifying laboratory’ means a laboratory ‘‘(iii) export only to persons authorized to the American pharmaceutical market. in the United States that has been approved import the drugs; (3) To allow the importation of prescrip- by the Secretary for the purposes of this sec- ‘‘(iv) notify the Secretary of a recall or tion drugs only if the drugs and facilities tion. withdrawal of a qualifying drug distributed where such drugs are manufactured are ap- ‘‘(9) REGISTERED EXPORTER.—The term ‘reg- in a permitted country to or from which the proved by the Food and Drug Administra- istered exporter’ means a person that is in registrant has exported or imported, or in- tion, and to exclude pharmaceutical nar- the business of exporting a drug to individ- tends to export or import, to the United cotics. uals in the United States (or that seeks to be States; (4) To require that imported prescription in such business), for which a registration ‘‘(v) monitor compliance with registration drugs be packaged and shipped using coun- under this section has been approved and is conditions and report any noncompliance terfeit-resistant technologies. in effect. promptly; ‘‘(10) WHOLESALER.— ‘‘(vi) submit a compliance plan showing SEC. 4. AMENDMENTS TO SECTION 804 OF THE FEDERAL FOOD, DRUG, AND COS- ‘‘(A) IN GENERAL.—The term ‘wholesaler’ how the registrant will correct violations, if METIC. means a person licensed as a wholesaler or any; and (a) DEFINITIONS.—Section 804(a) of the Fed- distributor of prescription drugs in the ‘‘(vii) promptly notify Secretary of eral Food, Drug, and Cosmetic Act (21 U.S.C. United States under section 503(e)(2)(A). changes in the registration information of 384(a)) is amended to read as follows: ‘‘(B) EXCLUSION.—The term ‘wholesaler’ the registrant. ‘‘(a) DEFINITIONS.—In this section: does not include a person authorized to im- ‘‘(2) NOTICE OF APPROVAL OR DIS- ‘‘(1) IMPORTER.—The term ‘importer’ means port drugs under section 801(d)(1).’’. APPROVAL.— a pharmacy, group of pharmacies, phar- (b) REGULATIONS.—Section 804(b) of the ‘‘(A) IN GENERAL.—Not later than 90 days macist, or wholesaler. Federal Food, Drug, and Cosmetic Act (21 after receiving a completed registration ‘‘(2) PERMITTED COUNTRY.—The term ‘per- U.S.C. 384(b)) is amended to read as follows: from a registrant, the Secretary shall— ‘‘(b) REGULATIONS.—Not later than 180 days mitted country’ means a country, union, or ‘‘(i) notify such registrant of receipt of the after the date of enactment of the Pharma- economic area that is listed in subparagraph registration; ceutical Market Access Act of 2005, the Sec- (A) of section 802(b)(1), except that the Sec- ‘‘(ii) assign such registrant a registration retary, after consultation with the United retary— number; and States Trade Representative and the Com- ‘‘(A) may add a country, union, or eco- ‘‘(ii) approve or disapprove the application. missioner of Customs, shall promulgate reg- nomic area to such list for purposes of this ‘‘(B) DISAPPROVAL OF APPLICATION.— ulations permitting pharmacists, phar- section if the Secretary determines that the ‘‘(i) IN GENERAL.—The Secretary shall dis- macies, wholesalers, and individuals to im- country, union, or economic area has a phar- approve a registration, and notify the reg- port qualifying drugs from permitted coun- maceutical infrastructure that is substan- istrant of such disapproval, if the Secretary tries into the United States.’’. tially equivalent or superior to the pharma- has reason to believe that such registrant is (c) LIMITATION.—Section 804(c) of the Fed- ceutical infrastructure of the United States, not in compliance with a registration condi- eral Food, Drug, and Cosmetic Act (21 U.S.C. taking into consideration pharmacist quali- tion. 384(c)) is amended by striking ‘‘prescription fications, pharmacy storage procedures, the ‘‘(ii) SUBSEQUENT APPROVAL.—The Sec- drug’’ each place it appears and inserting drug distribution system, the drug dis- retary may subsequently approve a registra- ‘‘qualifying drug’’. tion that was denied under clause (i) if the pensing system, and market regulation; and (d) INFORMATION AND RECORDS.—Section ‘‘(B) may remove a country, union, or eco- Secretary finds that the registrant is in com- 804(d)(1) of the Federal Food, Drug, and Cos- pliance with all registration conditions. nomic area from such list for purposes of metic Act (21 U.S.C. 384(d)(1)) is amended— ‘‘(3) LIST.—The Secretary shall— this section if the Secretary determines that (1) by striking subparagraph (G) and redes- the country, union, or economic area does ‘‘(A) maintain an up-to-date list of reg- ignating subparagraphs (H) through (N) as istered exporters (including qualifying Inter- not have such a pharmaceutical infrastruc- subparagraphs (G) through (M), respectively; ture. net pharmacies that sell qualifying drugs to (2) in subparagraph (H) (as so redesig- individuals); ‘‘(3) PHARMACIST.—The term ‘pharmacist’ nated), by striking ‘‘telephone number, and means a person licensed by a State to prac- ‘‘(B) make such list available to the public professional license number (if any)’’ and in- on the Internet site of the Food and Drug tice pharmacy, including the dispensing and serting ‘‘and telephone number’’; and selling of prescription drugs. Administration and via a toll-free telephone (3) in subparagraph (L) (as so redesig- number; and ‘‘(4) PHARMACY.—The term ‘pharmacy’ nated), by striking ‘‘(J) and (L)’’ and insert- means a person that is licensed by a State to ‘‘(C) update such list promptly after the ing ‘‘(I) and (K)’’. approval of a registration under this sub- engage in the business of selling prescription (e) TESTING.—Section 804(e) of the Federal section. drugs at retail that employs 1 or more phar- Food, Drug, and Cosmetic Act (21 U.S.C. ‘‘(4) EDUCATION OF CONSUMERS.—The Sec- macists. 384(e)) is amended to read as follows: retary shall carry out activities, by use of ‘‘(5) PRESCRIPTION DRUG.—The term ‘pre- ‘‘(e) TESTING.—The regulations under sub- scription drug’ means a drug subject to sec- section (b) shall require that the testing de- the Internet website and toll-free telephone tion 503(b), other than— scribed under subparagraphs (I) and (K) of number under paragraph (3), that educate ‘‘(A) a controlled substance (as defined in subsection (d)(1) be conducted by the im- consumers with regard to the availability of section 102 of the Controlled Substances Act porter of the qualifying drug, unless the qualifying drugs for import for personal use (21 U.S.C. 802)); qualifying drug is drug subject to the re- under this section, including information on ‘‘(B) a biological product (as defined in sec- quirements under subsection (l) for counter- how to verify whether an exporter is reg- tion 351 of the Public Health Service Act (42 feit-resistant technologies.’’. istered. U.S.C. 262)); (f) REGISTRATION OF EXPORTERS; INSPEC- ‘‘(5) INSPECTION OF IMPORTERS AND REG- ‘‘(C) an infused drug (including a peri- TIONS.—Section 804(f) of the Federal Food, ISTERED EXPORTERS.—The Secretary shall in- toneal dialysis solution); Drug, and Cosmetic Act (21 U.S.C. 384(f)) is spect the warehouses, other facilities, and ‘‘(D) an intravenously injected drug; amended to read as follows: records of importers and registered exporters ‘‘(E) a drug that is inhaled during surgery; ‘‘(f) REGISTRATION OF EXPORTERS; INSPEC- as often as the Secretary determines nec- or TIONS.— essary to ensure that such importers and ‘‘(F) a drug which is a parenteral drug, the ‘‘(1) IN GENERAL.—Any person that seeks to registered exporters are in compliance with importation of which pursuant to subsection be a registered exporter (referred to in this this section.’’. (b) is determined by the Secretary to pose a subsection as the ‘registrant’) shall submit (g) SUSPENSION OF IMPORTATION.—Section threat to the public health, in which case to the Secretary a registration that includes 804(g) of the Federal Food, Drug, and Cos- section 801(d)(1) shall continue to apply. the following: metic Act (21 U.S.C. 384(g)) is amended by— ‘‘(6) QUALIFYING DRUG.—The term ‘quali- ‘‘(A) The name of the registrant and identi- (1) striking ‘‘and the Secretary determines fying drug’ means a prescription drug that— fication of all places of business of the reg- that the public is adequately protected from

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counterfeit and violative prescription drugs ‘‘(2) COLLECTION IN SUBSEQUENT YEARS.— ‘‘(B) the use by the Secretary of the fees being imported under subsection (b)’’; and After the fee is paid for the first fiscal year, collected during the fiscal year for which the (2) by adding after the period at the end the fee described under this subsection shall report is made.’’. the following: ‘‘The Secretary shall reinstate be payable on or before October 1 of each SEC. 6. COUNTERFEIT-RESISTANT TECHNOLOGY. the importation by a specific importer upon year. (a) MISBRANDING.—Section 502 of the Fed- a determination by the Secretary that the ‘‘(3) ONE FEE PER FACILITY.—The fee shall eral Food, Drug, and Cosmetic Act (21 U.S.C. violation has been corrected and that the im- be paid only once for each registered ex- 352; deeming drugs and devices to be mis- porter has demonstrated that further viola- porter for a fiscal year in which the fee is branded) is amended by adding at the end the tions will not occur. This subsection shall payable. following: not apply to a prescription drug imported by ‘‘(c) FEE AMOUNT.— ‘‘(v) If it is a drug subject to section 503(b), an individual, or to a prescription drug ‘‘(1) IN GENERAL.—The amount of the fee unless the packaging of such drug complies shipped to an individual by a qualifying shall be determined each year by the Sec- with the requirements of section 505C for Internet pharmacy.’’. retary and shall be based on the anticipated counterfeit-resistant technologies.’’. (h) WAIVER AUTHORITY FOR INDIVIDUALS.— costs to the Secretary of enforcing the (b) REQUIREMENTS.—Title V of the Federal Section 804(j) of the Federal Food, Drug, and amendments made by the Pharmaceutical Food, Drug, and Cosmetic Act (21 U.S.C. 351 Cosmetic Act (21 U.S.C. 384(j)) is amended to Market Access Act of 2005 in the subsequent et seq.) is amended by inserting after section read as follows: fiscal year. 505B the following: ‘‘(j) IMPORTATION BY INDIVIDUALS.— ‘‘(2) LIMITATION.— ‘‘SEC. 505C. COUNTERFEIT-RESISTANT TECH- ‘‘(1) IN GENERAL.—Not later than 180 days ‘‘(A) IN GENERAL.—The aggregate total of NOLOGIES. after the enactment of the Pharmaceutical fees collected under this section shall not ex- ‘‘(a) INCORPORATION OF COUNTERFEIT-RE- Market Access Act of 2005, the Secretary ceed 1 percent of the total price of drugs ex- SISTANT TECHNOLOGIES INTO PRESCRIPTION shall by regulation permit an individual to ported annually to the United States by reg- DRUG PACKAGING.—The Secretary shall re- import a drug from a permitted country to istered exporters under this section. quire that the packaging of any drug subject the United States if the drug is— ‘‘(B) REASONABLE ESTIMATE.—Subject to to section 503(b) incorporate— ‘‘(A) a qualifying drug; the limitation in described in subparagraph ‘‘(1) overt optically variable counterfeit-re- ‘‘(B) imported from a licensed pharmacy or (A), a fee under this subsection for an ex- sistant technologies that are described in qualifying Internet pharmacy; porter shall be an amount that is a reason- subsection (b) and comply with the standards ‘‘(C) for personal use by an individual, or able estimate by the Secretary of the annual of subsection (c); or family member of the individual, not for re- share of the exporter of the volume of drugs ‘‘(2) technologies that have an equivalent sale; exported by exporters under this section. function of security, as determined by the ‘‘(D) in a quantity that does not exceed a ‘‘(d) USE OF FEES.—The fees collected Secretary. 90-day supply during any 90-day period; and under this section shall be used for the sole ‘‘(b) ELIGIBLE TECHNOLOGIES.—Tech- ‘‘(E) accompanied by a copy of a prescrip- purpose of administering this section with nologies described in this subsection— tion for the drug, which— respect to registered exporters, including the ‘‘(1) shall be visible to the naked eye, pro- ‘‘(i) is valid under applicable Federal and costs associated with— viding for visual identification of product State laws and; ‘‘(1) inspecting the facilities of registered authenticity without the need for readers, ‘‘(ii) was issued by a practitioner who is exporters, and of other entities in the chain microscopes, lighting devices, or scanners; authorized administer prescription drugs. of custody of a qualifying drug; ‘‘(2) shall be similar to that used by the Bureau of Engraving and Printing to secure ‘‘(2) DRUGS DISPENSED OUTSIDE THE UNITED ‘‘(2) developing, implementing, and main- United States currency; STATES.—An individual may import a drug taining a system to determine registered ex- from a country that is not a permitted coun- porters’ compliance with the registration ‘‘(3) shall be manufactured and distributed try if— conditions under the Pharmaceutical Market in a highly secure, tightly controlled envi- ‘‘(A) the drug was dispensed to the indi- Access Act of 2005, including when shipments ronment; and vidual while the individual was in such coun- of qualifying drugs are offered for import ‘‘(4) should incorporate additional layers of try, and the drug was dispensed in accord- into the United States; and non-visible covert security features up to ance with the laws and regulations of such ‘‘(3) inspecting such shipments, as nec- and including forensic capability. ‘‘(c) STANDARDS FOR PACKAGING.— country; essary, when offered for import into the ‘‘(1) MULTIPLE ELEMENTS.—For the purpose ‘‘(B) the individual is entering the United United States to determine if any such ship- of making it more difficult to counterfeit States and the drug accompanies the indi- ment should be refused admission. the packaging of drugs subject to section vidual at the time of entry; ‘‘(e) ANNUAL FEE SETTING.—The Secretary 503(b), manufacturers of the drugs shall in- ‘‘(C) the drug is approved for commercial shall establish, 60 days before the beginning corporate the technologies described in sub- distribution in the country in which the drug of each fiscal year beginning after Sep- section (b) into multiple elements of the was obtained; tember 30, 2005, for that fiscal year, registra- physical packaging of the drugs, including ‘‘(D) the drug does not appear to be adul- tion fees. ‘‘(f) EFFECT OF FAILURE TO PAY FEES.— blister packs, shrink wrap, package labels, terated; and ‘‘(1) DUE DATE.—A fee payable under this package seals, bottles, and boxes. ‘‘(E) the quantity of the drug does not ex- section shall be paid by the date that is 30 ‘‘(2) LABELING OF SHIPPING CONTAINER.— ceed a 14-day supply.’’. days after the date on which the fee is due. Shipments of drugs described in subsection (i) REPEAL OF CERTAIN PROVISIONS.—Sec- ‘‘(2) FAILURE TO PAY.—If a registered ex- tion 804 of the Federal Food, Drug, and Cos- (a) shall include a label on the shipping con- porter subject to a fee under this section metic Act (21 U.S.C. 384) is amended by strik- tainer that incorporates the technologies de- fails to pay the fee, the Secretary shall not ing subsections (l) and (m). scribed in subsection (b), so that officials in- permit the registered exporter to engage in specting the packages will be able to deter- SEC. 5. REGISTRATION FEES. exportation to the United States or offering mine the authenticity of the shipment. Subchapter C of chapter VII of the Federal for exportation prescription drugs under this Chain of custody procedures shall apply to Food, Drug, and Cosmetic Act (21 U.S.C. 397f Act until all such fees owed by that person such labels and shall include procedures ap- et seq.) is amended by adding at the end the are paid. plicable to contractual agreements for the following: ‘‘(g) REPORTS.— use and distribution of the labels, methods ‘‘PART 5—FEES RELATING TO ‘‘(1) FEE ESTABLISHMENT.—Not later than to audit the use of the labels, and database PRESCRIPTION DRUG IMPORTATION 60 days before the beginning of each fiscal access for the relevant governmental agen- ‘‘SEC. 740A. FEES RELATING TO PRESCRIPTION year, the Secretary shall— cies for audit or verification of the use and DRUG IMPORTATION. ‘‘(A) publish registration fees under this distribution of the labels. ‘‘(a) REGISTRATION FEE.—The Secretary section for that fiscal year; ‘‘(d) EFFECTIVE DATE.—This section shall shall establish a registration fee program ‘‘(B) hold a meeting at which the public take effect 180 days after the date of enact- under which a registered exporter under sec- may comment on the recommendations; and ment of the Pharmaceutical Market Access tion 804 shall be required to pay an annual ‘‘(C) provide for a period of 30 days for the Act of 2005.’’. fee to the Secretary in accordance with this public to provide written comments on the SEC. 7. PROHIBITED ACTS. subsection. recommendations. Section 301 of the Federal Food, Drug, and ‘‘(b) COLLECTION.— ‘‘(2) PERFORMANCE AND FISCAL REPORT.—Be- Cosmetic Act (21 U.S.C. 331) is amended by ‘‘(1) COLLECTION ON INITIAL REGISTRATION.— ginning with fiscal year 2005, not later than inserting after subsection (k) the following: A fee under this section shall be payable for 60 days after the end of each fiscal year dur- ‘‘(l) The failure to register in accordance the fiscal year in which the registered ex- ing which fees are collected under this sec- with section 804(f) or to import or offer to porter first submits a registration under sec- tion, the Secretary shall submit to the Com- import a prescription drug in violation of a tion 804 (or reregisters under that section if mittee on Health, Education, Labor, and suspension order under section 804(g).’’. that person has withdrawn its registration Pensions of the Senate and the Committee SEC. 8. PATENTS. and subsequently reregisters) in a amount of on Energy and Commerce of the House of Section 271 of title 35, United States Code, $10,000, due on the date the exporter first Representatives a report that describes— is amended— submits a registration to the Secretary ‘‘(A) implementation of the registration (1) by redesignating subsections (h) and (i) under section 804. fee authority during the fiscal year; and as subsections (i) and (j), respectively; and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00174 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S281 (2) by inserting after subsection (g) the fol- ‘‘(J) engage in any other action that the under section 18(a)(1)(B) of the Federal Trade lowing: Federal Trade Commission determines to Commission Act. ‘‘(h) It shall not be an act of infringement discriminate against a person that engages ‘‘(B) ACTIONS BY THE COMMISSION.—The to use, offer to sell, or sell within the United in, or to impede, delay, or block the process Federal Trade Commission— States or to import into the United States for, the importation of a prescription drug ‘‘(i) shall enforce this subsection in the any patented invention under section 804 (21 under this section. same manner, by the same means, and with U.S.C. 384) of the Federal Food, Drug, and ‘‘(2) AFFIRMATIVE DEFENSE.—It shall be an the same jurisdiction, powers, and duties as Cosmetic Act that was first sold abroad by affirmative defense to a charge that a person though all applicable terms and provisions of or under authority of the owner or licensee has discriminated under subparagraph (A), the Federal Trade Commission Act were in- of such patent.’’. (B), (C), (D), or (E) of paragraph (1) that the corporated into and made a part of this sec- SEC. 9. OTHER ENFORCEMENT ACTIONS. higher price charged for a prescription drug tion; and (a) IN GENERAL.—Section 804 of the Federal sold to a person, the denial of supplies of a ‘‘(ii) may seek monetary relief threefold Food, Drug, and Cosmetic Act (as amended prescription drug to a person, the refusal to the damages sustained. in section 4) is amended by adding at the end do business with a person, or the specific re- ‘‘(6) ACTIONS BY STATES.— the following: striction or delay of supplies to a person is ‘‘(A) IN GENERAL.— ‘‘(l) UNFAIR OR DISCRIMINATORY ACTS AND not based, in whole or in part, on— ‘‘(i) CIVIL ACTIONS.—The attorney general PRACTICES.— of a State may bring a civil action on behalf ‘‘(1) IN GENERAL.—It is unlawful for a man- ‘‘(A) the person exporting or importing a prescription drug into the United States of the residents of the State, and persons ufacturer, directly or indirectly (including doing business in the State, in a district under this section; or by being a party to a licensing or other court of the United States of appropriate ju- ‘‘(B) the person distributing, selling, or agreement) to— risdiction for a violation of paragraph (1) using a prescription drug imported into the ‘‘(A) discriminate by charging a higher to— United States under this section. price for a prescription drug sold to a person ‘‘(I) enjoin that practice; ‘‘(3) PRESUMPTION AND AFFIRMATIVE DE- in a permitted country that exports a pre- ‘‘(II) enforce compliance with this sub- FENSE.— scription drug to the United States under section; ‘‘(A) PRESUMPTION.—A difference (includ- this section than the price that is charged to ‘‘(III) obtain damages, restitution, or other another person that is in the same country ing a difference in active ingredient, route of compensation on behalf of residents of the and that does not export a prescription drug administration, dosage form, strength, for- State and persons doing business in the into the United States under this section; mulation, manufacturing establishment, State, including threefold the damages; or ‘‘(B) discriminate by charging a higher manufacturing process, or person that manu- ‘‘(IV) obtain such other relief as the court price for a prescription drug sold to a person factures the drug) created after January 1, may consider to be appropriate. that distributes, sells, or uses a prescription 2005, between a prescription drug for dis- ‘‘(ii) NOTICE.— drug imported into the United States under tribution in the United States and the drug ‘‘(I) IN GENERAL.—Before filing an action this section than the price that is charged to for distribution in a permitted country shall under clause (i), the attorney general of the another person in the United States that be presumed under paragraph (1)(H) to be for State involved shall provide to the Federal does not import a prescription drug under the purpose of restricting importation of the Trade Commission— this section, or that does not distribute, sell, drug into the United States under this sec- ‘‘(aa) written notice of that action; and or use such a drug; tion. ‘‘(bb) a copy of the complaint for that ac- ‘‘(C) discriminate by denying supplies of a ‘‘(B) AFFIRMATIVE DEFENSE.—It shall be an tion. prescription drug to a person in a permitted affirmative defense to the presumption ‘‘(II) EXEMPTION.—Subclause (I) shall not country that exports a prescription drug to under subparagraph (A) that— apply with respect to the filing of an action the United States under this section or dis- ‘‘(i) the difference was required by the by an attorney general of a State under this tributes, sells, or uses a prescription drug country in which the drug is distributed; or paragraph, if the attorney general deter- imported into the United States under this ‘‘(ii) the Secretary has determined that the mines that it is not feasible to provide the section; difference was necessary to improve the safe- notice described in that subclause before fil- ‘‘(D) discriminate by publicly, privately, or ty or effectiveness of the drug. ing of the action. In such case, the attorney otherwise refusing to do business with a per- ‘‘(4) EFFECT OF SUBSECTION.— general of a State shall provide notice and a son in a permitted country that exports a ‘‘(A) SALES IN OTHER COUNTRIES.—This sub- copy of the complaint to the Federal Trade prescription drug to the United States under section applies only to the sale or distribu- Commission at the same time as the attor- this section or distributes, sells, or uses a tion of a prescription drug in a country if the ney general files the action. prescription drug imported into the United manufacturer of the drug chooses to sell or ‘‘(B) INTERVENTION.— States under this section; distribute the drug in the country. Nothing ‘‘(i) IN GENERAL.—On receiving notice ‘‘(E) discriminate by specifically restrict- in this subsection shall be construed to com- under subparagraph (A)(ii), the Commission ing or delaying the supply of a prescription pel the manufacturer of a drug to distribute shall have the right to intervene in the ac- drug to a person in a permitted country that or sell the drug in a country. tion that is the subject of the notice. exports a prescription drug to the United ‘‘(B) DISCOUNTS TO INSURERS, HEALTH ‘‘(ii) EFFECT OF INTERVENTION.—If the Com- States under this section or distributes, PLANS, PHARMACY BENEFIT MANAGERS, AND mission intervenes in an action under sub- sells, or uses a prescription drug imported COVERED ENTITIES.—Nothing in this sub- paragraph (A), it shall have the right— into the United States under this section; section shall be construed to— ‘‘(I) to be heard with respect to any matter ‘‘(F) cause there to be a difference (includ- ‘‘(i) prevent or restrict a manufacturer of a that arises in that action; and ing a difference in active ingredient, route of prescription drug from providing discounts ‘‘(II) to file a petition for appeal. administration, dosage form, strength, for- to an insurer, health plan, pharmacy benefit ‘‘(C) CONSTRUCTION.—For purposes of bring- mulation, manufacturing establishment, manager in the United States, or covered en- ing any civil action under subparagraph (A), manufacturing process, or person that manu- tity in the drug discount program under sec- nothing in this subsection shall be construed factures the drug) between a prescription tion 340B in return for inclusion of the drug to prevent an attorney general of a State drug for distribution in the United States on a formulary; from exercising the powers conferred on the and the drug for distribution in a permitted ‘‘(ii) require that such discounts be made attorney general by the laws of that State country for the purpose of restricting impor- available to other purchasers of the prescrip- to— tation of the drug into the United States tion drug; or ‘‘(i) conduct investigations; under this section; ‘‘(iii) prevent or restrict any other meas- ‘‘(ii) administer oaths or affirmations; or ‘‘(G) refuse to allow an inspection author- ures taken by an insurer, health plan, or ‘‘(iii) compel the attendance of witnesses ized under this section of an establishment pharmacy benefit manager to encourage con- or the production of documentary and other that manufactures a prescription drug that sumption of such prescription drug. evidence. may be imported or offered for import under ‘‘(C) CHARITABLE CONTRIBUTIONS.—Nothing ‘‘(D) ACTIONS BY THE COMMISSION.— this section; in this subsection shall be construed to— ‘‘(i) IN GENERAL.—In any case in which an ‘‘(H) fail to conform to the methods used ‘‘(i) prevent a manufacturer from donating action is instituted by or on behalf of the in, or the facilities used for, the manufac- a prescription drug, or supplying a prescrip- Commission for a violation of paragraph (1), turing, processing, packing, or holding of a tion drug at nominal cost, to a charitable or a State may not, during the pendency of that prescription drug that may be imported or humanitarian organization, including the action, institute an action under subpara- offered for import under this section to good United Nations and affiliates, or to a govern- graph (A) for the same violation against any manufacturing practice under this Act; ment of a foreign country; or defendant named in the complaint in that ‘‘(I) become a party to a licensing or other ‘‘(ii) apply to such donations or supplying action. agreement related to a prescription drug of a prescription drug. ‘‘(ii) INTERVENTION.—An attorney general that fails to provide for compliance with all ‘‘(5) ENFORCEMENT.— of a State may intervene, on behalf of the requirements of this section with respect to ‘‘(A) UNFAIR OR DECEPTIVE ACT OR PRAC- residents of that State, in an action insti- such prescription drug or that has the effect TICE.—A violation of this subsection shall be tuted by the Commission. of prohibiting importation of the drug under treated as a violation of a rule defining an ‘‘(iii) EFFECT OF INTERVENTION.—If an at- this section; or unfair or deceptive act or practice prescribed torney general of a State intervenes in an

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00175 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S282 CONGRESSIONAL RECORD — SENATE January 24, 2005 action instituted by the Commission, such ‘‘(1) The Secretary—’’; and ly file a suspension of deportation ap- attorney general shall have the right— (2) adding at the end the following: plication before the immigration laws ‘‘(I) to be heard with respect to any matter ‘‘(2) SUSPENSION AND TERMINATION OF EX- changed in 1996. that arises in that action; and PORTERS.— Mr. Liang is a foreign national and ‘‘(II) to file a petition for appeal. ‘‘(A) SUSPENSION.—With respect to the ef- refugee from Laos. His wife is a citizen ‘‘(E) VENUE.—Any action brought under fectiveness of a registration submitted under subparagraph (A) may be brought in the dis- subsection (f) by a registered exporter: of Taiwan. They entered the United trict court of the United States that meets ‘‘(i) Subject to clause (ii), if the Secretary States 22 years ago as tourists and es- applicable requirements relating to venue determines, after notice and opportunity for tablished residency in the San Bruno, under section 1391 of title 28, United States a hearing, that the registered exporter has CA. Because they overstayed the terms Code. failed to maintain substantial compliance of their temporary visas, they now face ‘‘(F) SERVICE OF PROCESS.—In an action with all registration conditions, the Sec- deportation from the United States. brought under subparagraph (A), process retary may suspend the registration. After living here for so many years, may be served in any district in which the ‘‘(ii) If the Secretary determines that, removal from the United States would defendant— under color of the registration, the reg- ‘‘(i) is an inhabitant; or istered exporter has exported a drug that is not come easily or perhaps without ‘‘(ii) may be found. not a qualifying drug, or a drug that does not tearing this family apart. The Liangs ‘‘(G) LIMITATION OF ACTIONS.—Any action meet the criteria under this section, or has have three children born in this coun- under this paragraph to enforce a cause of exported a qualifying drug to an individual try: Wesley, 13 years old, Bruce, 10 action under this subsection by the Federal in violation of this section, the Secretary years old, and Eva, 7 years old. Young Trade Commission or the attorney general of shall immediately suspend the registration. Wesley suffers from asthma and has a a State shall be forever barred unless com- A suspension under the preceding sentence is menced within 5 years after the Federal history of social and emotional anx- not subject to the provision by the Secretary iety. The immigration judge who pre- Trade Commission, or the attorney general, of prior notice, and the Secretary shall pro- as the case may be, knew or should have vide to the registered exporter involved an sided over the Liang’s case in 1997 con- known that the cause of action accrued. No opportunity for a hearing not later than 10 cluded that there was no question that cause of action barred under existing law on days after the date on which the registration the Liang children would be adversely the effective date of this Act shall be revived is suspended. impacted if they were required to leave by this Act. ‘‘(iii) The Secretary may reinstate the reg- their relatives and friends behind in ‘‘(H) MEASUREMENT OF DAMAGES.—In any istration, whether suspended under clause (i) California to follow their parents to action under this paragraph to enforce a or (ii), if the Secretary determines that the cause of action under this subsection in Taiwan, a country whose language and registered exporter has demonstrated that culture is unfamiliar to them. And that which there has been a determination that a further violations of registration conditions defendant has violated a provision of this will not occur. was 7 years ago. I can only imagine subsection, damages may be proved and as- ‘‘(B) TERMINATION.—The Secretary, after how much more they would be ad- sessed in the aggregate by statistical or sam- notice and opportunity for a hearing, may versely impacted now given the pas- pling methods, by the computation of illegal terminate the registration under subsection sage of 7 more years. overcharges or by such other reasonable sys- (f) of a registered exporter if the Secretary The Liangs have filed annual income tem of estimating aggregate damages as the determines that the registered exporter has tax returns; established a successful court in its discretion may permit without engaged in a pattern or practice of violating business, Fong Yong Restaurant, in the the necessity of separately proving the indi- 1 or more registration conditions, or if on 1 vidual claim of, or amount of damage to, per- United States; are home owners, and or more occasions the Secretary has under are financially successful. Since they sons on whose behalf the suit was brought. subparagraph (A)(ii) suspended the registra- ‘‘(I) EXCLUSION ON DUPLICATIVE RELIEF.— tion of the registered exporter. The Sec- arrived in the United States, they have The district court shall exclude from the retary may make the termination perma- pursued and, to a degree, achieved the amount of monetary relief awarded in an ac- nent, or for a fixed period of not less than 1 American Dream. tion under this paragraph brought by the at- year. During the period in which the reg- Mr. and Mrs. Liang’s quest to legalize torney general of a State any amount of istration of a registered exporter is termi- their immigration status began in 1993 monetary relief which duplicates amounts nated, any registration submitted under sub- when they filed for relief from deporta- which have been awarded for the same in- section (f) by such exporter or a person who tion before an immigration judge. The jury. is a partner in the export enterprise or a ‘‘(7) EFFECT ON ANTITRUST LAWS.—Nothing Immigration and Naturalization Serv- principal officer in such enterprise, and any ice, however, did not act on their appli- in this subsection shall be construed to mod- registration prepared with the assistance of ify, impair, or supersede the operation of the such exporter or such a person, has no legal cation until nearly 5 years later, in antitrust laws. For the purpose of this sub- effect under this section.’’. 1997, after which time the immigration section, the term ‘antitrust laws’ has the SEC. 10. AUTHORIZATION OF APPROPRIATIONS. laws had significantly changed. meaning given it in the first section of the There are authorized to be appropriated According to the immigration judge, Clayton Act, except that it includes section such sums as may be necessary to carry out had the INS acted on their application 5 of the Federal Trade Commission Act to this Act (and the amendments made by this for relief from deportation in a timely the extent that such section 5 applies to un- Act). fair methods of competition. manner, they would have qualified for suspension of deportation, given that ‘‘(8) MANUFACTURER.—In this subsection, By Mrs. FEINSTEIN: the term ‘manufacturer’ means any entity, S. 110. A bill for the relief of Robert they were long-term residents of this including any affiliate or licensee of that en- Liang and Alice Liang; to the Com- country with US citizen children and tity, that is engaged in— other positive factors. By the time INS ‘‘(A) the production, preparation, propaga- mittee on the Judiciary. Mrs. FEINSTEIN. Mr. President, I processed their application, however, tion, compounding, conversion, or processing Congress passed the Illegal Immigra- of a prescription drug, either directly or in- offer today private relief legislation to directly by extraction from substances of provide lawful permanent residence tion Reform and Immigrant Responsi- natural origin, or independently by means of status to Robert Kuan Liang and his bility Act of 1996, which changed the chemical synthesis, or by a combination of wife, Chun-Mei (‘‘Alice’’) Hsu-Liang, requirements for relief from removal to extraction and chemical synthesis; or foreign nationals who live in San the Liangs’ disadvantage. ‘‘(B) the packaging, repackaging, labeling, Bruno, California. I supported the changes of the 1996 relabeling, or distribution of a prescription I have decided to offer private relief law, but I believe sometimes there are drug.’’. immigration bills on their behalf be- exceptions which merit special consid- (b) REGULATIONS.—The Federal Trade Com- eration. The Liangs are such a couple mission shall promulgate regulations to cause I believe that, without it, this carry out the enforcement program under hardworking couple and their three and family. Perhaps what distinguishes section 804(l) of the Federal Food, Drug, and United States citizen children would this family from many others is that Cosmetic Act (as added by subsection (a)). endure an immense and unfair hard- through hard work and perseverance, (c) SUSPENSION AND TERMINATION OF EX- ship. Indeed, without this legislation, Mr. Liang has achieved a significant PORTERS.—Section 804(g) of the Federal this family may not remain a family degree of success in the United States Food, Drug, and Cosmetic Act (as amended while battling a severe form of Post by section 4(g)) (21 U.S.C. 384(g)) is amended for much longer. by— The Liangs are foreign nationals fac- Traumatic Stress Disorder. According (1) striking ‘‘SUSPENSION OF IMPORTA- ing deportation on account of their to his psychologist, this disorder stems TION.—The Secretary’’ and inserting ‘‘SUS- overstay of visitors visas and the fail- from the persecution he, his family and PENSION OF IMPORTATION.— ure of their previous attorney to time- community experienced in his native

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00176 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S283 country of Laos during the Vietnam Holly Street are members in good standing Liang of San Bruno, because I understand War. Throughout his childhood and of the San Carlos Chamber of Commerce. As that you may be considering resubmitting a adolescence, Mr. Liang was exposed to such they have shown their commitment to private bill in their favor. I certainly hope numerous traumatic experiences, in- be members in good standing of the San Car- that you do resubmit and support this pri- los business community. Chamber members vate bill. These are extraordinary people in cluding the murder of his mother by tend to reflect a desire for community in- the way they and their business have en- the North Vietnamese and frequent volvement and support for their city. The hanced our community of San Carlos. Alice episodes of wartime violence. He also Liangs took the initiative to start a business and Robert have really created a special routinely witnessed the brutal persecu- here and have maintained it beautifully. community of customers and friends with tion and deaths of others in his village. They have a very loyal cadre of customers. their restaurant. In 1975, he was granted refugee status The Chamber is always happy to see good It’s hard to describe how much of an asset in Taiwan. small businesses like Fon Yong thrive. The the Liangs are to our community. They are The emotional impact of Mr. Liang’s Chamber stands behind Alice and her family good neighbors. They are welcoming friends experiences in his war-torn native in their quest for permanent residence in the and hosts. They expect only good from peo- United States. Alice is well known to all who ple and they reach out with friendship and country have been profound and con- frequent her restaurant as a warm, friendly aid to those around them. tinue to haunt him. In addition to business woman who even takes the time to Robert and Alice have touched the hun- being diagnosed with Post Traumatic remember what her regulars’ favorites are. dreds of customers who have walked in the Stress Disorder, his psychologist has The Liang family is a stable one and they doors of Fon Yong Restaurant by not only also indicated that he suffers from se- contribute to the community here. They preparing very good food, but by reaching us vere clinical depression, which has have done good rather than harm as they personally with very caring, unsolicited acts been exacerbated by the prospect of settled here. I hope you can respond posi- of kindness and neighborliness. A couple of being deported to Taiwan, where on ac- tively to their example and settle the immi- examples include their bringing my hus- gration issue quickly. band’s favorite vegetarian meal to him at count of his nationality, he believes he Sincerely, Sequoia Hospital, when he was undergoing and his family would be treated as sec- SHERYL POMERENK, rehabilitation from a stroke, and regularly ond-class citizens. Moreover, Mr. Liang CEO, San Carlos Chamber of Commerce. assisting the disabled daughter of a customer believes that the pursuit of further as she works to feed herself dinner in the res- mental health treatment in Taiwan JANUARY 13, 2005. taurant. Their actions of kindness remind all would only exacerbate the stigma of Hon. DIANNE FEINSTEIN, of us what it is to be a good neighbor. These being an outsider in a country whose 331 Hart Senate Office Building, are the values and qualities we hope for in language he does not speak. Given Washington, DC. our neighbors. DEAR SENATOR FEINSTEIN: I am writing in those prospects, he also fears the im- The private bill you submitted in the last support of a private bill for Robert and Alice Congress did help reduce Robert’s anxiety pact such a stigma would have on the Liang, two outstanding residents of our com- level. (As you know, he is being treated for well-being and future of his children. munity for the past twenty-one years. Post Traumatic Stress Disorder.) I am very Given these extraordinary and Robert and Alice are two of the most car- concerned though, about what may happen unique facts, I ask my colleagues to ing and hardworking people I have ever met. to the family if they are forced to leave the support this private relief bill on behalf Despite the demands of running a small busi- United States and relocate to a place the of the Liangs. ness and taking care of their three children, children have never seen, is a half a life away I also ask unanimous consent that they are always trying to help others in for Alice, and is certainly not Robert’s home. need. Recently, Alice heard about Chloe the text of the legislation be printed in I hope you will resubmit your bill for the Chang, a young local girl who had acute Liangs and encourage your fellow members the RECORD and that the attached promyelocytic leukemia. Chloe had under- three letters of community support of the Senate to support the Liangs in their gone chemotherapy, but had a relapse. She quest to join us as citizens of the United also be printed. needed a bone marrow transplant, and was States. There being no objection, the bill and looking for a donor. Her family was facing Thank you so much for your support of the letters were ordered to be printed in mounting bills from the donor search. Alice Liangs. Also, please know that I am ready the RECORD, as follows: asked me if there was any way she could and willing to help you help them. S. 110 help. I should point out that she had never Sincerely, met this family, she just knew they were in Be it enacted by the Senate and House of Rep- BARBARA MAAS. need from newspaper articles and TV broad- resentatives of the United States of America in casts. We put together a fund-raising dinner Congress assembled, By Mrs. FEINSTEIN: event at Stanford University in which I S. 111. A bill for the relief of Shigeru SECTION 1. ADJUSTMENT OF STATUS. bought the ingredients, and Robert and Alice (a) IN GENERAL.—Notwithstanding any Yamada; to the Committee on the Ju- worked all day cooking a hundred dinners. other provision of law or any order, for the diciary. Together, we raised almost a thousand dol- purposes of the Immigration and Nationality Mrs. FEINSTEIN. Mr. President, I lars to help Chloe’s family. Act (8 U.S.C. 1101 et seq.), Robert Liang and This is not the only time that Robert and offer today private relief legislation to Alice Liang shall be deemed to have been Alice have gone out of their way to help oth- provide lawful permanent residence lawfully admitted to, and remained in, the ers, even while they themselves face deporta- status to Shigeru Yamada, a 22-year- United States, and shall be eligible for tion. It amazes me that they can think of old Japanese national who lives in issuance of an immigrant visa or for adjust- others at such a time, but that’s the kind of ment of status under section 245 of the Immi- Chula Vista, CA. people they are. I am so worried about Rob- I have decided to introduce a private gration and Nationality Act (8 U.S.C. 1255). ert, especially, because he is still suffering (b) APPLICATION AND PAYMENT OF FEES.— bill on his behalf because I believe that from all the things he saw as a child and a Subsection (a) shall apply only if the appli- teenager in Laos. People were dragged out Mr. Yamada represents a model Amer- cations for issuance of immigrant visas or and killed in front of him, and his own moth- ican citizen, for whom removal from the applications for adjustment of status are er was killed by the Communists before the this country would represent an unfair filed with appropriate fees within 2 years rest of the family escaped. After two decades hardship. Without this legislation, Mr. after the date of enactment of this Act. here, Robert has found a little peace, and I Yamada will be forced to return to a (c) REDUCTION OF IMMIGRANT VISA NUM- can’t even think what it will do to him to BERS.—Upon the granting of immigrant visas country in which he lacks any lin- have that taken away. I want you as my sen- to Robert Liang and Alice Liang, the Sec- guistic, cultural or family ties. ator to do whatever it takes to make sure retary of State shall instruct the proper offi- Mr. Yamada legally entered the that these two wonderful people can stay cer to reduce by 2, during the current or sub- United States with his mother and two here where they belong. Please sponsor a pri- sequent fiscal year, the total number of im- vate bill and try to convince other members sisters in 1992 at the young age of 10. migrant visas that are made available to na- of Congress to support it. If there’s anything The family was fleeing from Mr. tives of the country of the aliens’ birth I can do to help, please let me know. Yamada’s alcoholic father, who had under section 202(e) or 203(a) of the Immigra- Sincerely, been physically abusive to his mother, tion and Nationality Act (8 U.S.C. 1152(e), Sue Chow. 1153(a)), as applicable. the children and even his own parents. Since then, he has had no contact with Re the Liang Family. JANUARY 12, 2005. his father and is unsure if he is even Hon. DIANNE FEINSTEIN, Senator DIANNE FEINSTEIN, alive. Tragically, Mr. Yamada experi- U.S. Senate, Hart Senate Office Building, Hart Senate Office Building, Washington, DC. Washington, DC. enced further hardship when his moth- DEAR SENATOR FEINSTEIN: Robert and Alice DEAR SENATOR FEINSTEIN: I am writing you er was killed in a car crash in 1995. Or- Liang and their Fon Yong Restaurant at 1065 as a friend and customer of Robert and Alice phaned at the age of 13, Mr. Yamada

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00177 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S284 CONGRESSIONAL RECORD — SENATE January 24, 2005 spent time living with his aunt before ‘‘team player.’’ His level of commit- wrong and grant Mr. Yamada lawful moving to Chula Vista to live with a ment to the team was further illus- permanent resident status so that he close friend of his late mother. trated to Dr. Sorge when he discovered, can continue towards his bright future. The death of his mother marked halfway through the season, that Mr. Given these extraordinary and more than a personal tragedy for Mr. Yamada’s commute to and from prac- unique facts, I ask my colleagues to Yamada; it also served to impede the tice was 2 hours long each way. It support this private relief bill on behalf process for him to legalize his status. takes an individual with character to of Mr. Yamada. At the time of her death, Mr. Yamada’s volunteer his time to coach and never I ask unanimous consent that the family was living legally in the United bring up the issue of how long his com- text of the bill be printed in the States. His mother had acquired a stu- mute takes him each day. Dr. Sorge RECORD and that the three letters of dent visa for herself and her children hopes that, once Mr. Yamada legalizes community support be printed in the qualified as her dependents. Her death his immigration status, he will be for- RECORD. revoked his legal status in the United mally hired to continue coaching the There being no objection, the mate- States. In addition, Mr. Yamada’s team. rial was ordered to be printed in the mother was engaged to an American Third, sending Mr. Yamada back to RECORD, as follows: citizen at the time of her death. Had Japan would be an immense hardship S. 111 she survived, her son would likely have for him and his family here. Mr. Be it enacted by the Senate and House of Rep- become an American citizen through Yamada does not speak Japanese. He is resentatives of the United States of America in this marriage. unaware of the nation’s current cul- Congress assembled, Mr. Yamada has exhausted all admin- tural trends. And, he has no immediate SECTION 1. PERMANENT RESIDENT STATUS FOR istrative options under our current im- family members that he knows of in SHIGERU YAMADA. migration system. Throughout high Japan. Currently, both of his sisters (a) IN GENERAL.—Notwithstanding sub- school, he contacted attorneys in the are in the process of legalizing their sections (a) and (b) of section 201 of the Im- migration and Nationality Act (8 U.S.C. hopes of legalizing his status, but his immigration status in the United 1151), Shigeru Yamada shall be eligible for attempts were unsuccessful. Unfortu- States. His older sister is married to a issuance of an immigrant visa or for adjust- nately, time has run out and, for Mr. United States citizen and his younger ment of status to that of an alien lawfully Yamada, the only option available to sister is being adopted by a maternal admitted for permanent residence upon fil- him today is private relief legislation. aunt, who is a United States citizen. ing an application for issuance of an immi- For several reasons, it would be trag- Since as all of his family lives in Cali- grant visa under section 204 of that Act or ic for Mr. Yamada to be deported from fornia, sending Mr. Yamada back to for adjustment of status to lawful permanent the United States and forced to return Japan would serve to split his family resident. (b) ADJUSTMENT OF STATUS.—If Shigeru to Japan. apart and separate him from everyone Yamada enters the United States before the First, since arriving in the United and everything that he knows. His sis- filing deadline specified in subsection (c), States, Mr. Yamada has lived as a ter contends that her younger brother Shigeru Yamada shall be considered to have model American. He graduated with would be ‘‘lost’’ if he had to return to entered and remained lawfully and shall be honors from Eastlake High School in live in Japan on his own. It is unlikely eligible for adjustment of status under sec- 2000, where he excelled in both aca- that he would be able to find any gain- tion 245 of the Immigration and Nationality demics and athletics. Academically, he ful employment in Japan due to his in- Act (8 U.S.C. 1255) as of the date of enact- earned a number of awards including ability to speak or read the language. ment of this Act. (c) DEADLINE FOR APPLICATION AND PAY- being named an ‘‘Outstanding English As a member of the Chula Vista com- MENT OF FEES.—Subsections (a) and (b) shall Student’’ his freshman year, an All- munity, Mr. Yamada has distinguished apply only if the application for issuance of American Scholar, and earning the himself as an honorable individual. His an immigrant visa or the application for ad- United States National Minority Lead- teacher, Mr. Robert Hughes, describes justment of status is filed with appropriate ership Award. His teacher and coach, him as being an ‘‘upstanding ‘All- fees within 2 years after the date of enact- Mr. John Inumerable, describes him as American’ young man’’. Until being ment of this Act. being ‘‘responsible, hard working, orga- picked up during a routine check of (d) REDUCTION OF IMMIGRANT VISA NUM- nized, honest, caring and very depend- riders’ immigration status on a city BERS.—Upon the granting of an immigrant able.’’ His role as the Vice-President of visa or permanent residence to Shigeru bus, he had never been arrested or con- Yamada, the Secretary of State shall in- the Associated Student Body his senior victed of any crime. Mr. Yamada is struct the proper officer to reduce by 1, dur- year is an indication of Mr. Yamada’s not, and has never been, a burden on ing the current or next following fiscal year, high level of leadership, as well as, his the State. He has never received any the total number of immigrant visas that are popularity and trustworthiness among Federal or State assistance. made available to natives of the country of his peers. As an athlete, Mr. Yamada Currently, Mr. Yamada holds sopho- birth of Shigeru Yamada under section 203(a) was named the ‘‘Most Inspirational more status at Southwestern Commu- of the Immigration and Nationality Act or, Player of the Year’’ in Junior Varsity nity College. However, he is taking this if applicable, the total number of immigrant baseball and football, as well as, Var- semester off in order to alleviate his fi- visas that are made available to natives of the country of birth of Shigeru Yamada sity football. His football coach, Mr. nancial burdens by working full time. under section 202(e) of that Act. Jose Mendoza, expressed his admira- He had hoped to pursue a career in law EASTLAKE HIGH SCHOOL, tion by saying that he has ‘‘seen in enforcement, but his plans have re- Chula Vista, CA, January 17, 2005. Shigeru Yamada the responsibility, cently changed due to his current im- Senator DIANNE FEINSTEIN, dedication and loyalty that the aver- migration status dilemma. Until he ob- U.S. Senate, age American holds to be virtuous.’’ tains citizenship, Mr. Yamada will be Washington, DC. Second, Mr. Yamada has distin- prohibited from pursuing a career in DEAR SENATOR FEINSTEIN: I am more than guished himself as a local volunteer. As law enforcement. Due to the cir- happy to write this letter on behalf of a member of the Eastlake High School cumstances, Mr. Yamada has changed Shigeru Yamada as he pursues his efforts to Link Crew, he helped freshman find stay in the United States. I was Shigeru’s his career goal to that of becoming a counselor while he attended Eastlake High their way around campus, offered tu- high school teacher. Mr. Yamada’s School. During that time he always dis- toring and mentoring services, and set commitment to his education is admi- played exemplary behavior, academic focus, an example of how to be a successful rable. He could have easily taken a dif- and personal determination. member of the student body. After ferent path but, through his own ‘‘indi- Academically Shigeru was a model stu- graduating from high school, he volun- vidual fortitude,’’ he has dedicated dent. He earned a 3.84 grade point average; teered his time for 4 years as the coach himself to his studies so that he can he made the National Honor Roll and was of the Eastlake High School Girl’s soft- live a better life. nominated to Who’s Who Among High School ball team. The former head coach, who With his hard work and giving atti- Students for three straight years. Shigeru plans to attend a university to study sports has since retired, Dr. Charles Sorge, de- tude, Shigeru Yamada represents the medicine and physical therapy so he has set scribes him as an individual full of ‘‘in- ideal American citizen. Although born high goals for himself. He has the ability to tegrity’’ who understands that as a in Japan, he is truly American in every not only handle college-level work, but to coach it is important to work as a other sense. I ask you to help right a thrive on the challenge the university will

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00178 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S285 bring. His quiet determination has been an the while you would not have known that. lar to Bobby’s. Not long ago, she suc- example to his peers and was a joy to his in- He set goals for himself academically and cessfully underwent heart surgery, but structors. athletically; modeled himself on good ideals requires medical supervision to ensure Shigeru Yamada not only took the most of community service and service to his her good health. from his high school experience, but he has school. He was vice-president of the Associ- consistently ‘‘given back’’ his talents, time, ated Student Body at Eastlake High and The Fulop’s youngest child, Mat- and effort to serve the school community. He would have pursued an academic future at thew, was born seven weeks premature. was elected ASB vice-president during his UCLA were it not for his citizenship status. He subsequently underwent several senior year. He demonstrated leadership Instead, he did what he could do and has kidney surgeries and is still being skills as president of the Inter-Club Council gone to community college in an effort to closely monitored by physicians. on campus; he mentored incoming ninth- pursue his college degree. Compounding these tragedies is the grade students and worked on numerous All the while, he volunteered his time dur- fact that today the Fulops face depor- service projects. In addition to his involve- ing these past 5 years to help coach our tation. They face deportation, in part, ment in student government, Shigeru par- school’s softball team (as well as other ticipated in football, baseball, and wrestling. sports on campus). It was only recently that because in 1995 the family traveled to He was named ‘‘Most Inspirational Player of I had discovered that it would take him 2 Hungary and remained there for more the Year’’ for both his junior varsity base- hours with bus transfers just to get to soft- than 90 days. Under the pre-1996 immi- ball and football teams. He was also awarded ball practice. gration law, prior to the Illegal Immi- the J.T. Franks Memorial Award (most in- I provide this information to you as a tes- gration Reform and Immigrant Respon- spirational) from the varsity football team. timonial to the character of this young man. sibility Act of 1996, their stay in Hun- (This award carries a great deal of respect Exceptional in attitude and determination. amongst the players as it is named after a gary would not have been a factor in We need this kind of spirit and resolve in their immigration case and they would teammate who died of cancer.) Shigeru was a America. We do not want to export it some- role model for our students when he attended where else. Please help. have been eligible for adjustment of our school: He earned good grades; he was an Respectfully, status to lawful permanent residents. athlete; and he was involved in a variety of CHARLES R. SORGE, Indeed, in 1996, Mr. and Mrs. Fulop additional activities. He is the kind of stu- Ed.D., English Teacher and applied to the Immigration and Natu- dent that Eastlake High School has been Head Softball Coach. ralization Service, INS, for permanent proud to have. resident status. Due to large backlogs, A further testimony to Shigeru’s character EASTLAKE HIGH SCHOOL, the INS did not interview them until is what he has been doing since graduating. ASSOCIATED STUDENT BODY, This young man has come back to serve as 1998. By the time their applications Chula Vista, CA, January 14, 2005. were considered, the new 1996 immigra- an assistant football and wrestling coach for CONGRESSMAN FILNER: Please consider the our students. He gives his time and energy to reintroduction of the private bill for perma- tion law had taken effect. Given their working with individual students during the nent residency on behalf of Shigeru Yamada. one-time 90 day trip outside the United week and on weekends; he not only advises He is a most outstanding person, with char- States, they were statutorily ineligible them on how to improve their athletic skills, acter second to none. Shigeru Yamada has for relief pursuant to the cancellation but he is also a wonderful role model and no ties, nor any cultural background with of removal provisions of the Immigra- mentor. He is someone to whom the young Japan. Since he has been raised in the tion and Nationality Act. men can relate, a person whose opinions are United States for the past 12 years out of his valued. I have personally seen Shigeru inter- One cannot help but conclude that 22 years, he is not able to communicate in had the INS acted on the Fulop’s appli- act with these boys; the respect he gives the Japanese language. Therefore, to throw them and the respect they give Shigeru is an Shiguru back into a world of confusion will cation for relief from deportation in a absolute indication of the positive influence not only be a tragic event for him, but a loss timelier manner, they would have he has in their lives. for the United States and the Chula Vista qualified for suspension of deportation Shigeru is seeking permanent resident sta- community. under the pre-1996 law, given that they tus in the United States through a private Once again we cannot lose a strong mem- were long-term residents of the United bill that you have agreed to sponsor. Were ber of this society. Please consider his re- his mother still alive, his residency would States with U.S. Citizen children and quest for sponsorship. many positive factors in their favor. not be in question. However, since she died a Sincerely, The irony of this situation is that the few years ago in a car accident, Shigeru has BOB BARRETT, had to get through high school without her Assistant Principal. Fulops were gone from the United guidance and support, and now his future in States for nearly five months in 1995 the United States is in jeopardy. Shigeru By Mrs. FEINSTEIN: because they traveled to Hungary to Yamada has already proven himself to be a S. 112. A bill for the relief of Denes help Mr. Fulop’s brother build his hard-working, law-abiding, goal-oriented Fulop and Gyorgyi Fulop; to the Com- home. Mr. Fulop’s brother is handicap young man. He has already proven himself to be a productive member of society. And, mittee on the Judiciary. and they went to help remodel his most importantly, Shigeru wants to not only Mrs. FEINSTEIN. Mr. President, I home. take the best this society has to offer, but to offer today a private immigration re- The Fulops are good and decent peo- also give back to the society to make it a lief bill to provide lawful permanent ple. Mr. Fulop is a masonry contractor better place for those around him. residence status to Denes and Gyorgyi and the owner and president of his own Perhaps the best endorsement that I can Fulop, Hungarian nationals who have construction company—Sumeg Inter- give is that I would be proud to claim lived in California for more than 20 national. He has owned this business Shigeru Yamada as my son. He embodies all years. The Fulops are the parents of six for 10 years and currently has three the qualities that I have tried to instill in my own sons. Please, I urge you to submit U.S. citizen children. Today, they face full-time employees. the bill that would give Shigeru Yamada per- deportation having exhausted all ad- The couple are active in their church manent residency in the United States. He ministrative remedies under our immi- and community. As Pastor Peter will represent all of us well. gration system. Petrovic of the Apostolic Christian Sincerely, The Fulop’s story is a compelling one Church of San Diego says in his letter ANN M. STEVENS, and one which I believe merits Con- of support, ‘‘[t]he family is an excep- Asst. Principal. gress’ consideration for humanitarian tional asset to their community.’’ Mrs. relief. Fulop has served as a Sunday school EASTLAKE HIGH SCHOOL, Chula Vista, CA, January 13, 2005. The most poignant tragedy to affect teacher and volunteers regularly at HON. DIANNE FEINSTEIN: I am writing to this family occurred in May 2000, when Heritage K–8 Charter School in Escon- bring to your attention the need to support the Fulops eldest child, Robert dido. Mrs. Morris, a Heritage K–8 Char- a fine young man, Shigeru Yamada. I am a ‘‘Bobby’’ Fulop, an accomplished 15 ter School faculty member says in her teacher and coach at Eastlake High School; year-old teenager, died suddenly of a letter of support that Mrs. Fulop is I have known Shigeru for 8 years, both as a heart aneurism. Bobby was considered ‘‘. . . a valuable asset to our school and student and as a volunteer coach during the the shining star of his family. community.’’ last 5 years. What has singularly impressed That same year their six-year-old Mr. President, this is a tragic situa- me about this young man is that he has cre- ated himself and never complained about his daughter, Elizabeth, was diagnosed tion. Essentially, as happened to many life’s struggles. His mother died when he was with moderate pulmonary stenosis, a families under the Illegal Immigration young. He got little support from his aunt— potentially life-threatening heart con- Reform and Immigrant Responsibility materially, emotionally, spiritually. Yet all dition and a frightening situation simi- Act of 1996, the rules of the game were

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00179 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S286 CONGRESSIONAL RECORD — SENATE January 24, 2005 changed in the middle. When the Joy Fulop was a building sub-committee never been contacted or liened by any of his Fulops applied for relief from deporta- member during the construction of the suppliers to date. Dennis is also very pro- tion they were eligible for suspension church and also served for a few years as a ficient at managing and providing work for of deportation. By the time the INS got Sunday school teacher. Joy is a devoted and his employees. committed homemaker, and a wonderful ex- Dennis’s wife Joy is a dedicated wife and around to their application, nearly ample of a loving mother and wife. Their mother to their six children. three years later, they were no longer three younger children, Elizabeth, Sarah and I am very thankful to know the Fulop fam- eligible and in fact suspension of depor- Abigail are actively involved in Sunday ily personally and I can attest that their val- tation as a form of relief ceased to school and in various youth group activities. ues and deeply held convictions make them exist. The two oldest, Denny and Linda, are also valuable contributors to their local commu- The Fulops today have been in the active in the church. They are very diligent nity and society as a whole. United States since the early 1980s. and excellent students in High School and Sincerely, Most harmful is the effect that their outstanding citizens. RON RIMMER, President. deportation will have on the children, The family is an exceptional asset to their community. Denes has been self-employed all of whom were born here and who for many years and is a knowledgeable and By Mrs. FEINSTEIN: range from one year old to 17 years of successful contractor. Their family has never S. 113. A bill to modify the date as of age. Their eldest, Dennis, is a 4.0 honor depended on any government aid, but rather which certain tribal land of the Lytton student at Palomar Community Col- contributes and shares their blessings with Rancheria of California is deemed to be lege having graduated from high school others. Denes, Joy, and their six children are held in trust; to the Committee on In- one year early. His sister, Linda, has a truly an asset to our church and community. dian Affairs. 3.8 grade point average and is an honor Should you have any further questions, Mr. President, I rise today to intro- please don’t hesitate to contact me. student in high school. duce legislation that would strike a It is my hope that Congress sees fit Respectfully submitted, PETER PETROVIC, small provision in the Omnibus Indian to provide an opportunity for this fam- Pastor. Advancement Act of 2000; language ily to remain together in the United that circumvents the Indian Gaming States given their many years here, HERITAGE K–8 CHARTER SCHOOL, Regulatory Act’s common-sense pro- the profound sadness they have already Escondido, CA, January 14, 2005. tections and safeguards against the in- experienced and the harm that would DEAR MEMBERS OF CONGRESS, I am writing appropriate siting of Nevada-style casi- come from their deportation to their this letter on behalf of the Fulop Family. I want to express my deep appreciation for nos. six U.S. citizen children. In December 2000, a one-paragraph Mr. President, I ask unanimous con- Mrs. Fulop’s involvement at our elementary school. provision was attached to the Omnibus sent that the text of the bill and three Abigail Fulop is a successful kindergarten Indian Advancement Act taking land letters be printed in the RECORD. student in my class who performs above into trust for a single Indian tribe—the There being no objection, the mate- grade level. Sarah and Elizabeth Fulop at- Lytton—with the aim of allowing the rial was ordered to be printed in the tend Heritage charter as well and are out- tribe to bypass the federal and state re- RECORD, as follows: standing students. view process and expedite plans to es- Mrs. Fulop volunteers on a regular basis in S. 112 tablish a large, off-reservation gaming Be it enacted by the Senate and House of Rep- my kindergarten classroom helping students become better readers. She takes a reading complex in an urban area near San resentatives of the United States of America in Francisco. Most astoundingly, this pro- Congress assembled, group and works on reading strategies that increase student’ learning. She also takes vision included a clause which man- SECTION 1. ADJUSTMENT OF STATUS. time to volunteer in her daughter Sarah’s (a) IN GENERAL.—Notwithstanding any dated that the Secretary of Interior class. Her time and effort fosters a learning other provision of law or any order, for the backdate the acquisition of this land to environment. Recently she participated in a purposes of the Immigration and Nationality October 17, 1988—despite the fact that cooking demonstration for the class. She Act (8 U.S.C. 1101 et seq.), Denes Fulop and the land was actually taken into trust also takes time out of her busy schedule to Gyorgyi Fulop shall be deemed to have been help her daughter’s third grade teacher plan in 2004. This backdating permitted the lawfully admitted to, and remained in, the and prepare for field trips. tribe to completely circumvent the In- United States, and shall be eligible for In all these things I have confidence that dian Gaming Regulatory Act’s require- issuance of an immigrant visa or for adjust- she is a valuable asset to our school and ments for gaming on newly acquired ment of status under section 245 of the Immi- community. Please consider supporting their gration and Nationality Act (8 U.S.C. 1255). lands and avoid an important consult- desire to remain with us. Please feel free to (b) APPLICATION AND PAYMENT OF FEES.— ative process prescribed in federal law. Subsection (a) shall apply only if the appli- contact me with any questions. Today California is home to 110 feder- cations for issuance of immigrant visas or Sincerely, ally recognized tribes. Sixty-six tribes MRS. MORRIS. the applications for adjustment of status are have gaming compacts with the state filed with appropriate fees within 2 years R. RIMMER CONSTRUCTION INC., and there are 57 tribal casinos. With after the date of enactment of this Act. more than 50 tribes seeking federal rec- (c) REDUCTION OF IMMIGRANT VISA NUM- Cardiff, CA, January 13, 2005. TO WHOM IT MAY CONCERN: The purpose of BERS.—Upon the granting of immigrant visas ognition and approximately 25 recog- to Denes Fulop and Gyorgyi Fulop, the Sec- this letter is to describe my relationship nized tribes seeking gaming compacts retary of State shall instruct the proper offi- with Dennis Fulop, whom I have known for from the Governor, revenues from Cali- cer to reduce by 2, during the current or sub- approximately twenty-two years. fornia’s tribal gaming industry are ex- As a building contractor in the San Diego sequent fiscal year, the total number of im- area I have been fortunate to have worked pected to be the highest of any state’s migrant visas that are made available to na- with Dennis for most of those years. He has by the end of the decade. According to tives of the country of the aliens’ birth constructed nearly all of the foundations for the latest statistics released by the Na- under section 202(e) or 203(a) of the Immigra- the room additions and new houses that I tional Indian Gaming Commission, in tion and Nationality Act (8 U.S.C. 1152(e), have built. Dennis has also constructed most 1153(a)), as applicable. 2003 California by itself accounted for of the driveways, sidewalks, retaining walls, about half of the increase in gaming APOSTOLIC CHRISTIAN CHURCH fireplaces and masonry on my projects. He revenues nationwide. OF SAN DIEGO, has also attended to much of my finish grad- Escondido, CA, January 14, 2005. Mr. President, I have serious reserva- ing, drainage and backhoe construction tions about the expansion of Nevada- Re the Denes Fulop Family. needs. TO WHOM IT MAY CONCERN: My family and Dennis has long been an invaluable mem- style gaming—with its slot machines I have known Denes and Joy Fulop for many ber of my construction ‘‘team’’. He is very and in-house banking—into urban years. They have been members in good knowledgeable in nearly all construction areas, and I am particularly concerned standing in our church for approximately 20 matters. He has always been very reliable about off-reservation gambling and years. Denes has served the congregation and responsible in meeting deadlines and up- ‘‘reservation shopping’’. Off-reserva- faithfully in many capacities. He was a holding high standards of construction qual- tion casinos often cause counties addi- building committee member during the con- ity. tional costs in public and local serv- struction of our church 10 years ago. He also Dennis is also a very successful small busi- served as church treasurer for four years and ness owner. He has his own credit accounts ices, intrude on residential areas, and Sunday School Superintendent for many with all of the necessary construction sup- are responsible for an increase of traf- years. Presently he is a member on the board pliers and to my knowledge has always paid fic and crime within local commu- of trustees. his bills in a timely manner. In fact, I have nities.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00180 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S287 That is why Section 20 of the Indian S. 113 The bill also lifts the cap on CHIP Gaming Regulatory Act requires that Be it enacted by the Senate and House of Rep- funding that has caused some States to tribes complete a ‘‘two-part determina- resentatives of the United States of America in limit enrollment. It assists States fi- tion’’ process prior to engaging in Class Congress assembled, nancially by shifting current State III gaming on newly acquired, or off- SECTION 1. LYTTON RANCHERIA OF CALIFORNIA. spending for children under 100 percent reservation lands. Under this law, Section 819 of the Omnibus Indian Ad- of poverty to the Federal government. vancement Act (114 Stat. 2919) is amended by tribes seeking to game on lands ac- striking the last sentence. It requires all States to adopt the prov- quired after October 17, 1988, must re- en methods that encourage families to ceive the approval of both the state By Mr. KERRY (for himself, Mr. enroll and stay enrolled—methods such Governor and the Secretary of the In- KENNEDY, Mrs. MURRAY, Mr. as presumptive eligibility, the ability terior. In addition, this process re- LAUTENBERG, Mr. CORZINE, and to apply on-line or by telephone for the quires that the Secretary of the Inte- Ms. CANTWELL): coverage, and coverage for at least rior consult with local communities S. 114. A bill to amend titles XIX and twelve months without eligibility rede- and nearby tribes before making a final XXI of the Social Security Act to en- terminations. decision in these cases. sure that every uninsured child in This legislation is vitally important In August 2004, the Lytton tribe and America has health insurance cov- to all children. It is a pledge that they the Governor of my state reached an erage, and for other purposes; to the will have access to good health care agreement on a compact that would Committee on Finance. without regard to their family’s have permitted the development of a 6– Mr. KENNEDY. Mr. President, I’m wealth. It is a commitment to a 8 story casino housing 5,000 slot ma- honored to join my friend and col- healthy start in life for every child. chines. Notably, this would be the larg- league, Senator KERRY, in introducing As important as those objectives are, est inventory of slot machines found in this legislation to guarantee affordable the significance of this legislation goes any casino outside of Connecticut. health insurance for every child. We beyond coverage of all children. It is a After the State Legislature balked at made a good start toward this goal in major step toward the day when the approving this massive deal, the Gov- the 1990s, by enacting the Children’s basic right to health care will be a re- ernor and the tribe agreed to put for- Health Insurance Program to cover ality for every American, whatever ward a revised compact that would more low-income children. Now it is their age or income. We will not rest allow for a 2,500 slot casino, while per- time to finish the job. until that goal is achieved, and I com- mitting the tribe to negotiate for addi- Twelve million Americans who are mend Senator KERRY for leading this tional slots in 2008. This latest proposal twenty-one years old or younger have essential effort. remains unratified by the State Legis- no health insurance today. Seven mil- lature. By Mrs. FEINSTEIN: lion are already eligible for Medicaid S. 115. A bill to require Federal agen- Mr. President, without this legisla- or CHIP, but five million are not eligi- tion, the Lytton tribe will be able to cies, and persons engaged in interstate ble for these current programs. commerce, in possession of electronic open a massive gambling complex in a Every uninsured child represents a metropolitan area outside the regula- data containing personal information, national failure. Every uninsured child to disclose any unauthorized acquisi- tions set up by the Indian Gaming Reg- is at risk for losing the healthy start in ulatory Act. Allowing this to happen tion of such information; to the Com- life that should be birthright of every mittee on the Judiciary. would set a dangerous precedent not American. Every uninsured child is a only for California, but every state Mrs. FEINSTEIN. Mr. President, I potential source of heartbreak for par- rise to introduce the Notification of where tribal gaming is permitted. ents and other loved ones. Every unin- The changes I seek today are ex- Risk to Personal Data Act of 2005. This sured child is an American tragedy tremely limited. This legislation would legislation will require that individuals waiting to happen. not reverse restoration of the tribe. It are notified when their most sensitive This year, three hundred eighty would not infringe on Native American personal information is stolen from a thousand children suffering from asth- sovereignty. It does not affect the land corporate or government database. ma will never see a doctor. Five hun- acquisition or even block the casino This is the second Congress in a row dred thousand children with recurrent proposal. It only seeks to give the that I have introduced this legisla- earaches will never see a doctor. Five State and the local communities a tion—it is time for us to pass it to give hundred thousand children with severe voice in the process and ensure that Americans the notice they need to pro- sore throats will never see a doctor. gaming continues to be organized with- tect themselves from identity thieves. Uninsured children pay for their lack in the framework of the Indian Gaming Specifically, the bill would require of coverage in human suffering, unnec- Regulatory Act. government or private entities to no- The Indian Gaming Regulatory Act essary disability, and even death, and tify individuals if a data breach has has provided this Nation with a fair our society pays too. Sick children compromised their Social Security and balanced approach to Indian gam- cannot learn. Every child whose edu- number, driver’s license number, credit ing by facilitating tribal plans for eco- cation is limited or whose future po- card number, debit card number or fi- nomic recovery without compromising tential is lost because of avoidable ill- nancial account numbers. a multitude of factors that should be ness is a loss to America, because In most cases, if authorities know taken into account when deciding on America’s children are America’s fu- that someone is a victim of a crime, the siting of casinos. This law works. It ture. the victim is notified. But, that isn’t is a fair process that should continue The legislation we are introducing the case if an individual’s most sen- to be followed. today will guarantee coverage for sitive personal information is stolen It is simply not asking too much to every child twenty-one years of age or from an electronic database. require that Lytton be subject to the younger. It makes health insurance af- Measuring the problem of security regulatory and approval processes ap- fordable for every family, but it also breaches is difficult, because many plicable to newly acquired tribal lands asks families to share the responsi- companies never report breaches of by the Indian Gaming Regulatory Act. bility of covering their children, when their systems for fear that their rep- I hope my colleagues will support they are able to do so. utation for securing data would be this legislation and I look forward to The bill expands Medicaid and CHIP harmed. But, in a survey conducted in working with the Chairman and Rank- up to 300 percent of poverty. Families 2004 by the FBI and the Computer Se- ing Member of the Indian Affairs Com- of moderate means will be able to ob- curity Institute, 52 percent of respond- mittee to pass this legislation quickly. tain subsidized coverage for their chil- ents reported some level of unauthor- I ask unanimous consent that the dren. Families with incomes above 300 ized use of their computer systems. text of the bill be printed in the percent of poverty will be able to buy (Source: 2004 CSI/FBI Computer Crime RECORD. into Medicaid or CHIP for their chil- and Security Survey) There being no objection, the bill was dren, and they will be guaranteed that Data breaches are becoming all too ordered to be printed in the RECORD, as the cost will not exceed 5 percent of common. Consider the following inci- follows: their family income. dents which have compromised the

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00181 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S288 CONGRESSIONAL RECORD — SENATE January 24, 2005 records of hundreds of thousands of The legislation’s notification scheme because it is truly their information. Americans. minimizes the burdens on companies or Ask the ordinary person on the street On January 10, 2005, George Mason agencies that must report a data if he or she would like to know if a University in Fairfax, Virginia notified breach. In general, notice would have criminal had illegally gained access to 30,000 students that their names, to be provided to each person whose their personal information from a data- photos and Social Security numbers data was compromised in writing or base—the answer will be a resounding were taken by an online intruder; through e-mail. yes. (Source: Cnet news, ‘‘Hackers Steal ID But there are important exceptions. Enabling consumers to be notified in Info from Virginia University,’’ Mon- First, companies that have developed a timely manner of security breaches day, January 11, 2005) their own reasonable notification poli- involving their personal data will help On August 30, 2004, a University of cies are given a safe harbor under the combat the growing scourge of identity California-Berkeley database con- bill and are exempted from its notifica- theft. If individuals are informed of the taining the personal information of tion requirements. theft of their Social Security numbers 600,000 people was penetrated. The com- Second, encrypted data is exempted. or other sensitive information, they puter contained names, addresses, tele- Third, where it is too expensive or can take immediate preventative ac- phone numbers, dates of birth and So- impractical (e.g., contact address infor- tion. cial Security numbers; (Source: Associ- mation is incomplete) to notify every They can place a fraud alert on their ated Press, October 21, 2004) individual who is harmed, the bill al- credit report to prevent crooks from Already in the new year, cell phone lows entities to send out an alternative obtaining credit cards in their name; carrier T-Mobile announced that a form of notice called ‘‘substitute no- They can monitor their credit re- hacker broke into its database and tice.’’ Substitute notice includes post- ports to see if unauthorized activity accessed the names and Social Secu- ing notice on a website or notifying has occurred; rity numbers of 400 customers. (Source: major media. Substitute notice would They can cancel any affected finan- Cnet News, ‘‘Hacker Had Limited Ac- be triggered if any of the following fac- cial or consumer or utility accounts; cess’’ January 12, 2004) tors exist: and Last year, San Diego State Univer- (i) the agency or person demonstrates They can change their phone num- sity reported that hackers broke into a that the cost of providing direct notice server, gaining access to names and So- bers if necessary. would exceed $250,000; I look forward to working with my cial Security numbers for more than (ii) the affected class of subject per- 178,000 former and current students, colleagues to pass this vitally needed sons to be notified exceeds 500,000; or legislation. This bill will give ordinary alumni and staff; (Source: San Fran- (iii) the agency or person does not cisco Chronicle, ‘‘Colleges Leaking Americans more control and con- have sufficient contact information to fidence about the safety of their per- Confidential Data,’’ April 5, 2004) notify people whose information is at At the Georgia Institute of Tech- sonal information. Americans will have risk. nology, a hacker downloaded informa- the security of knowing that should a The bill has a tough, but fair enforce- tion that could have included names, breach occur, they will be notified and ment regime. Entities that fail to com- addresses, phone numbers and credit be able to take protective action. ply with the bill will be subject to fines card numbers for about 57,775 people; Thank you, Mr. President. by the Federal Trade Commission of (Source: San Francisco Chronicle, I ask unanimous consent that the $5,000 per violation or up to $25,000 per ‘‘Colleges Leaking Confidential Data,’’ text of the legislation be printed in the day while the violation persists. State April 5, 2004) and RECORD. Finally, in 2004, a Florida man and Attorneys General can also file suit to There being no objection, the bill was his employees hacked into Acxiom enforce the statute. ordered to be printed in the RECORD, as Corp.’s computer system for 16 months Additionally, the bill would allow follows: and stole large amounts of personal in- California’s law to remain in effect, but S. 115 preempt conflicting state laws. It is my formation. Christopher Way, a U.S. as- Be it enacted by the Senate and House of Rep- sistant attorney general, said then understanding that legislators in a resentatives of the United States of America in that the case represents ‘‘what may be number of states are developing bills Congress assembled, modeled after the California law. Re- the largest intrusion of personal data SECTION 1. SHORT TITLE. ever.’’ (Source: Arkansas Democrat-Ga- portedly, some of these bills have re- This Act may be cited as the ‘‘Notification zette, ‘‘Hacker Accesses Load of Data quirements that are inconsistent with of Risk to Personal Data Act’’. from Acxiom,’’ July 22, 2004) the California legislation. It is not fair SEC. 2. DEFINITIONS. My home State of California has a to put companies in a situation that In this Act, the following definitions shall similar data notification law, on which forces them to comply with database apply: my bill today is modeled. But this sort notification laws of 50 different states. (1) AGENCY.—The term ‘‘agency’’ has the A year after California’s landmark same meaning given such term in section of protection needs to be extended to 551(1) of title 5, United States Code. all Americans. legislation went into effect, the law has raised overall awareness of the (2) BREACH OF SECURITY OF THE SYSTEM.— I strongly believe Americans should The term ‘‘breach of security of the sys- be notified if a hacker gets access to need to have strong privacy protec- tem’’— their most personal data. This is both tions in place. Chris Jay Hoofnagle, as- (A) means the compromise of the security, a matter of principle and a practical sociate director of the nonprofit Elec- confidentiality, or integrity of computerized measure to curb identity theft. tronic Privacy Information Center, data that results in, or there is a reasonable Let me take a moment to describe said: ‘‘the California law has given the basis to conclude has resulted in, the unau- the proposed legislation. public a window into a very serious thorized acquisition of and access to per- The Notification of Risk to Personal problem of information security.’’ sonal information maintained by the person (Source: Associated Press, ‘‘Authori- or business; and Data Act will set a national standard (B) does not include good faith acquisition for notification of consumers when a ties Probe U.C. Hacking Attack,’’ Octo- of personal information by an employee or data breach occurs. ber 21, 2004) agent of the person or business for the pur- The legislation requires a business or As Beth Givens, director of the Pri- poses of the person or business, if the per- government entity to notify an indi- vacy Rights Clearinghouse, points out sonal information is not used or subject to vidual when there is a reasonable basis ‘‘if [California] didn’t have this law, further unauthorized disclosure. to conclude that a hacker or other the vast majority of these situations (3) PERSON.—The term ‘‘person’’ has the criminal has obtained unencrypted per- would go unreported.’’ (Source: The Or- same meaning given such term in section sonal data maintained by the entity. ange County Register, ‘‘Ingram Micro 551(2) of title 5, United States Code. Personal data is defined by the bill as Discloses Database Break-In,’’ May 15, (4) PERSONAL INFORMATION.—The term ‘‘personal information’’ means an individ- an individual’s Social Security num- 2004) ual’s last name in combination with any 1 or ber, State identification number, driv- I strongly believe individuals have a more of the following data elements, when er’s license number, financial account right to be notified when their most either the name or the data elements are not number, or credit card number. sensitive information is compromised— encrypted:

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(b) CONSTRUCTION.—For purposes of bring- (C) Account number, credit or debit card (7) REASONABLE NOTIFICATION PROCE- ing any civil action under subsection (a), number, in combination with any required DURES.—As used in paragraph (6), with re- nothing in this Act shall be construed to pre- security code, access code, or password that spect to a breach of security of the system vent an attorney general of a State from ex- would permit access to an individual’s finan- involving personal information described in ercising the powers conferred on such attor- cial account. section 2(4)(C), the term ‘‘reasonable notifi- ney general by the laws of that State to— (5) SUBSTITUTE NOTICE.—The term ‘‘sub- cation procedures’’ means procedures that— (1) conduct investigations; stitute notice’’ means— (A) use a security program reasonably de- (2) administer oaths or affirmations; or (A) e-mail notice, if the agency or person signed to block unauthorized transactions (3) compel the attendance of witnesses or has an e-mail address for the subject persons; before they are charged to the customer’s ac- the production of documentary and other (B) conspicuous posting of the notice on count; evidence. the Internet site of the agency or person, if (B) provide for notice to be given by the (c) VENUE; SERVICE OF PROCESS.— the agency or person maintains an Internet owner or licensee of the database, or another (1) VENUE.—Any action brought under sub- section (a) may be brought in the district site; or party acting on behalf of such owner or li- court of the United States that meets appli- (C) notification to major media. censee, after the security program indicates that the breach of security of the system has cable requirements relating to venue under SEC. 3. DATABASE SECURITY. resulted in fraud or unauthorized trans- section 1391 of title 28, United States Code. (2) SERVICE OF PROCESS.—In an action (a) DISCLOSURE OF SECURITY BREACH.— actions, but does not necessarily require no- brought under subsection (a), process may be (1) IN GENERAL.—Any agency, or person en- tice in other circumstances; and served in any district in which the defend- gaged in interstate commerce, that owns or (C) are subject to examination for compli- ant— licenses electronic data containing personal ance with the requirements of this Act by 1 (A) is an inhabitant; or information shall, following the discovery of or more Federal functional regulators (as de- (B) may be found. a breach of security of the system containing fined in section 509 of the Gramm-Leach Bli- such data, notify any resident of the United ley Act (15 U.S.C. 6809)), with respect to the SEC. 5. EFFECT ON STATE LAW. The provisions of this Act shall supersede States whose unencrypted personal informa- operation of the security program and the any inconsistent provisions of law of any tion was, or is reasonably believed to have notification procedures. State or unit of local government relating to been, acquired by an unauthorized person. (b) CIVIL REMEDIES.— the notification of any resident of the United (2) NOTIFICATION OF OWNER OR LICENSEE.— (1) PENALTIES.—Any agency, or person en- States of any breach of security of an elec- Any agency, or person engaged in interstate gaged in interstate commerce, that violates tronic database containing such resident’s commerce, in possession of electronic data this section shall be subject to a fine of not personal information (as defined in this Act), containing personal information that the more than $5,000 per violation, to a max- except as provided under sections 1798.82 and agency does not own or license shall notify imum of $25,000 per day while such violations 1798.29 of the California Civil Code. the owner or licensee of the information if persist. SEC. 6. EFFECTIVE DATE. the personal information was, or is reason- (2) EQUITABLE RELIEF.—Any person engaged This Act shall take effect on the expiration ably believed to have been, acquired by an in interstate commerce that violates, pro- of the date which is 6 months after the date unauthorized person through a breach of se- poses to violate, or has violated this section of enactment of this Act. curity of the system containing such data. may be enjoined from further violations by a (3) TIMELINESS OF NOTIFICATION.—Except as court of competent jurisdiction. (3) OTHER RIGHTS AND REMEDIES.—The By Mrs. FEINSTEIN: provided in paragraph (4), all notifications S. 116. A bill to require the consent of required under paragraph (1) or (2) shall be rights and remedies available under this sub- made as expediently as possible and without section are cumulative and shall not affect an individual prior to the sale and mar- unreasonable delay following— any other rights and remedies available keting of such individual’s personally (A) the discovery by the agency or person under law. identifiable information, and for other of a breach of security of the system; and (c) ENFORCEMENT.—The Federal Trade purposes; to the Committee on the Ju- (B) any measures necessary to determine Commission is authorized to enforce compli- diciary. the scope of the breach, prevent further dis- ance with this section, including the assess- Mrs. FEINSTEIN. Mr. President, I closures, and restore the reasonable integ- ment of fines under subsection (b)(1). am pleased to re-introduce the ‘‘Pri- rity of the data system. SEC. 4. ENFORCEMENT BY STATE ATTORNEYS vacy Act of 2005.’’ (4) DELAY OF NOTIFICATION AUTHORIZED FOR GENERAL. This legislation would establish, for LAW ENFORCEMENT PURPOSES.—If a law en- (a) IN GENERAL.— the first time, a comprehensive na- forcement agency determines that the notifi- (1) CIVIL ACTIONS.—In any case in which the tional system of privacy protection. cation required under this subsection would attorney general of a State has reason to be- impede a criminal investigation, such notifi- lieve that an interest of the residents of that This is the second Congress in a row cation may be delayed until such law en- State has been or is threatened or adversely that I have introduced this legislation. forcement agency determines that the notifi- affected by the engagement of any person in Every year that we wait, millions more cation will no longer compromise such inves- a practice that is prohibited under this Act, Americans become victims of identity tigation. the State, as parens patriae, may bring a theft. It is time for us to act. (5) METHODS OF NOTICE.—An agency, or per- civil action on behalf of the residents of the As you know, Mr. President, I have son engaged in interstate commerce, shall be State in a district court of the United States ardently fought for years for legisla- in compliance with this subsection if it pro- of appropriate jurisdiction to— tion to hamper identity theft. Today, vides the resident, owner, or licensee, as ap- (A) enjoin that practice; this legislation is one of three bills propriate, with— (B) enforce compliance with this Act; (A) written notification; (C) obtain damage, restitution, or other that I am introducing to continue that (B) e-mail notice, if the person or business compensation on behalf of residents of the fight. I am also introducing the Social has an e-mail address for the subject person; State; or Security Number Misuse Prevention or (D) obtain such other relief as the court Act of 2005, and the Notification of (C) substitute notice, if— may consider to be appropriate. Risk to Personal Data Act of 2005. I (i) the agency or person demonstrates that (2) NOTICE.— urge my colleagues to pass all of them, the cost of providing direct notice would ex- (A) IN GENERAL.—Before filing an action to protect Americans from those who ceed $250,000; under paragraph (1), the attorney general of would steal our very identities. (ii) the affected class of subject persons to the State involved shall provide to the At- At the heart of this bill is the re- be notified exceeds 500,000; or torney General— (iii) the agency or person does not have (i) written notice of the action; and quirement that companies may not sell sufficient contact information for those to (ii) a copy of the complaint for the action. consumers’ most intimate personal in- be notified. (B) EXEMPTION.— formation unless consumers affirma- (6) ALTERNATIVE NOTIFICATION PROCE- (i) IN GENERAL.—Subparagraph (A) shall tively give their authorization. This is DURES.—Notwithstanding any other obliga- not apply with respect to the filing of an ac- known as ‘‘opt-in.’’ Therefore, compa- tion under this subsection, an agency, or per- tion by an attorney general of a State under nies must obtain consumers’ written son engaged in interstate commerce, shall be this subsection, if the State attorney general consent prior to selling their personal deemed to be in compliance with this sub- determines that it is not feasible to provide health information, financial informa- section if the agency or person— the notice described in such subparagraph (A) maintains its own reasonable notifica- before the filing of the action. tion, Social Security numbers, and tion procedures as part of an information se- (ii) NOTIFICATION.—In an action described drivers’ license data (opt-in). For this curity policy for the treatment of personal in clause (i), the attorney general of a State sensitive data, the bill gives the indi- information; and shall provide notice and a copy of the com- vidual ultimate control over whether

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For information inconsistent state laws regarding the emails from banks and other financial that is still personal, but not as inti- treatment of non-sensitive informa- institutions. These emails tell con- mate, the bill allows businesses more tion. sumers to click on a Web page, and flexibility. Therefore, for other per- I note that this legislation is mod- then to enter their name, account sonal information—names, physical ad- eled on the California Financial Infor- numbers, passwords, and other sen- dresses, e-mail addresses, telephones, mation Privacy Act, which gives con- sitive financial information. The crimi- photographs, birth dates, places of sumers the right to require their con- nals then use this information not only birth, and birth certificate numbers— sent before financial companies share to steal from the unwitting consumers, companies can sell the information so their most intimate data. The plan is a but to literally lock them out of their long as consumers receive notice of the good one for Californians, and it is a own accounts. This one sort of identity companies’ intent, and an opportunity good one for all Americans. The fact theft has, according to a December to object and prohibit the sale of their that the California law is under assault study from e-mail security company information. This is known as ‘‘opt- in the courts makes it all the more MessageLabs, increased by almost ten- out.’’ vital that the uniform, national stand- fold over the last year. That is structure of the overall bill. ard I introduce today becomes law. Given the grave risks that tech- Let me take a moment to go over some I want to give a sense of why this leg- nology poses to our privacy, it is our of the specifics. islation is so necessary. Recent statis- responsibility to start taking action. For financial data, the Privacy Act tics on the growth of identity theft This is especially the case for older would tighten the information-sharing show we have no time to waste in pro- Americans, who are disproportionately provisions of the Gramm-Leach-Bliley tecting personal privacy. vulnerable to identity theft, as I tried Act. This legislation would modify that For years, identity theft has topped to highlight last year by cosponsoring statute, to prohibit the sale or disclo- the list of complaints reported to the the ‘‘Protecting Older Americans From sure of sensitive personal financial in- Federal Trade Commission. In 2003, the Fraud Month’’ resolution last October. formation to third parties unless the Commission received over half a mil- I would like to highlight some of the consumer affirmatively consents or lion such complaints, about 42 percent key provisions of the law. opts in. The legislation would also re- of the total. While the FTC will not re- For financial information this legis- quire that banks let consumers opt out port its numbers for 2004 until early lation tightens the privacy provisions of the sharing of their personal finan- February, I unfortunately expect to of the Financial Services Moderniza- cial information with the bank’s affili- again see identity theft as the cause of tion Act, commonly known as the ates or joint partners. The bill makes the most complaints. Gramm-Leach-Bliley Act. Under exceptions for vital public safety con- According to a 2003 report from the Gramm-Leach-Bliley, a bank can share a customer’s personal information with cerns. The Privacy Act of 2005 also pro- FTC, 10 million Americans discovered other companies so long as it gives hibits banks from denying a customer that year their identities had been sto- consumers notice and the right to opt- a financial product or financial service len. The report also stated that con- sumers have to spend an average of 30 out of the data sharing. if the consumer withholds consent. The problem with the prevailing opt- For sensitive medical information, hours to clear their name; The Identity out is that most people throw away this legislation would expand on the Theft Resource Center puts the number their privacy notices from banks along Department of Health and Human at 175 hours. And as Attorney General with the rest of the unrelenting pile of Services privacy regulations, by ex- John Ashcroft said last August, ‘‘Iden- commercial solicitations they receive. tending the restrictions placed on tity theft costs the nation’s businesses Since the passage of Gramm-Leach-Bli- ‘‘covered entities’’ (health insurers, nearly $50 billion a year in fraudulent ley, banks have sent out over one bil- health providers, and health care clear- transactions and often involves coordi- lion privacy notices. inghouses) to ‘‘non-covered entities’’ nated criminal conduct.’’ According to available published in- (business associates, health research- My own State, California, has more formation, fewer than 5 percent of ers, schools or universities, and life in- victims of identity theft than any bank customers have opted out of shar- surers). All of those entities will be other state. The FTC recorded 39,452 ing their personal information, and for able to share information only with the complaints of identity theft cases in many financial institutions, the re- patients’ consent. 2003 in California alone. sponse rate has been less than one per- For Social Security numbers, this But the numbers tell only part of the cent. bill will prohibit the sale or display of story. More important are the indi- Accordingly, this legislation pro- an individual’s Social Security number vidual people whose lives have been hibits the sale or disclosure of sensitive to the general public without the indi- devastated by identity theft. Let me personal financial information to third vidual’s express consent, and prohibit tell just one story that I find particu- parties unless the consumer affirma- federal, state, and local governments larly disturbing: tively consents or opts in—the burden from displaying the numbers on the Eric Drew was a patient in a hospital thus shifts off of the consumer. Internet, or from printing them on receiving a bone marrow transplant. This legislation also toughens Fed- checks and drivers’ licenses. This legis- Yet unbeknownst to him, a worker in eral financial privacy laws for affiliate- lation also recognizes legitimate uses the hospital had stolen Drew’s iden- sharing and joint-marketing. An affil- of Social Security numbers, by allow- tity, and had taken advantage of this iate is a company that is linked by ing the sale of Social Security numbers sick patient. As the Associated Press common ownership with another com- between businesses, or between the reported, ‘‘Drew said that while he was pany. Under Federal law, a bank can government and businesses, among lying in a hospital bed, dying from can- share with affiliates or joint marketing other exceptions. cer and weak from massive doses of partners regardless of whether the con- This legislation protects the privacy chemotherapy, he began to get mail sumer wants this information shared. of information regardless of the me- thanking him for opening accounts he This legislation would require that dium through which it is collected. knew nothing about.’’ In this case, banks give consumers the option of Therefore, it recognizes that both luckily, the criminal was caught and opting out of the sharing of their per- paper and electronic records are impor- convicted. sonal financial information with the tant to protecting the identities of Since I introduced this legislation for bank’s affiliates or joint partners. Americans. the first time in the 108th Congress, I would also like to describe several To minimize the regulatory burden of there are millions more stories like other key components of the financial these privacy rules, the bill sets up a this one. privacy section.

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I have also Congress assembled, incentives to customers to encourage introduced this section as a stand- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. them to permit the sharing of their alone bill, the ‘‘Social Security Num- (a) SHORT TITLE.—This Act may be cited as personal information. ber Misuse Prevention Act of 2005.’’ the ‘‘Privacy Act of 2005’’. Additionally, the bill permits banks It is crucial to protect Social Secu- (b) TABLE OF CONTENTS.—The table of con- to disclose, but not sell, personal infor- rity numbers because Social Security tents of this Act is as follows: mation to third parties for vital public numbers are the key to a person’s iden- Sec. 1. Short title; table of contents interest purposes such as identifying or tity. Many identity theft cases start TITLE I—COMMERCIAL SALE AND MAR- locating missing and abducted chil- with the theft of a Social Security KETING OF PERSONALLY IDENTIFI- dren, witnesses, criminals and fugi- number. Once a thief has access to a ABLE INFORMATION tives, parents delinquent in child sup- victim’s Social Security number, it is Sec. 101. Collection and distribution of per- sonally identifiable informa- port payments, organ and bone marrow only a short step to acquiring credit donors, pension fund beneficiaries, and tion cards, driver’s licenses, or other crucial Sec. 102. Enforcement missing heirs. identification documents. Sec. 103. Safe harbor Just as with financial data, personal This legislation bars the sale or dis- Sec. 104. Definitions health and medical data deserves the play of Social Security numbers to the Sec. 105. Preemption most stringent privacy protections. public except in a very narrow set of Sec. 106. Effective Date The recently adopted Department of circumstances. In general display or TITLE II—SOCIAL SECURITY NUMBER Health and Human Services privacy sale is permitted only if the Social Se- MISUSE PREVENTION regulations set a basic opt-in frame- curity number holder affirmatively Sec. 201. Findings work for disclosure of health informa- consents or if there are compelling Sec. 202. Prohibition of the display, sale, or tion. But more can be done to protect purchase of social security public safety needs. Government enti- numbers patient privacy. ties will have to redact Social Security The regulations only prohibit ‘‘cov- Sec. 203. Application of prohibition of the numbers from electronic records that ered entities’’—namely health insurers, display, sale, or purchase of so- are readily available to the public on cial security numbers to public health providers, and health care clear- the Internet. State governments will records inghouse—from selling a patient’s no longer be permitted to use the So- Sec. 204. Rulemaking authority of the Attor- health information without that pa- cial Security number as the default ney General tient’s prior consent. Sec. 205. Treatment of social security num- Meanwhile, non-covered entities— driver’s license number. bers on government documents such as business associates, health re- The legislation, however, recognizes Sec. 206. Limits on personal disclosure of a searchers, schools or universities, and that some industries rely on Social Se- social security number for con- life insurers—are not subject to this curity numbers to exchange informa- sumer transactions opt-in requirement, except through tion for certain transactions. Sec. 207. Extension of civil monetary pen- Thus, the bill directs the Attorney alties for misuse of a social se- contractual arrangements. curity number This legislation would preserve the General to develop regulations allow- ing for the sale or purchase of Social Sec. 208. Criminal penalties for the misuse of privacy of health information wherever a social security number the information is sold. Any business Security Numbers to facilitate busi- Sec. 209. Civil actions and civil penalties associate, life insurer, school or non- ness-to-business and business-to-gov- Sec. 210. Federal injunctive authority covered entity trying to sell or market ernment transactions, so long as busi- TITLE III—LIMITATIONS ON SALE AND protected health information would, nesses put appropriate safeguards in SHARING OF NONPUBLIC PERSONAL FI- like covered entities, have to get the place and do not permit public access NANCIAL INFORMATION patient’s prior consent. This is a cru- to the number. Sec. 301. Definition of sale cial step to protect what is truly our This legislation codifies steps Con- Sec. 302. Rules applicable to sale of non- most intimate information. gress can take to protect citizens from public personal information Drivers’ license data also are given identity thieves and other predators of Sec. 303. Exceptions to disclosure prohibition Sec. 304. Conforming amendments the strongest level of protection under personal information. It restores to an individual more con- Sec. 305. Regulatory authority this bill. Sec. 306. Effective date The Driver’s Privacy Protection Act, trol over her most sensitive personal information, such as Social Security TITLE IV—LIMITATIONS ON THE PROVI- DPPA was amended in 2000 to offer SION OF PROTECTED HEALTH INFOR- some meaningful protections for driv- numbers, health information, and fi- MATION ers’ privacy. nancial information. It also sets rea- Sec. 401. Definitions For example, under the DPPA, a sonable guidelines for businesses that Sec. 402. Prohibition against selling pro- State Department of Motor Vehicles handle our personal information every tected health information must obtain the prior consent (opt-in) day. Every American has a funda- Sec. 403. Authorization for sale or marketing of the driver before ‘‘highly sensitive mental right to privacy, no matter how of protected health information information’’—defined as a physical fast our technology grows or changes. by noncovered entities copy of the license, a Social Security Last year, President Bush signed into Sec. 404. Prohibition against retaliation law the Identity Theft Penalty En- Sec. 405. Rule of construction number, medical or disability informa- Sec. 406. Regulations tion, and other information can be dis- hancement Act, legislation that I Sec. 407. Enforcement closed to a third party. helped to write, to increase punish- TITLE V—DRIVER’S LICENSE PRIVACY However, loopholes remain. Other ment on people who steal others’ iden- Sec. 501. Driver’s license privacy sensitive information found on a driv- tities. I am proud of my work to make er’s license deserves equal protection. that bill into a law. But we all must re- TITLE VI—MISCELLANEOUS This legislation would expand the alize that punishment is no substitute Sec. 601. Enforcement by State Attorneys definition of ‘‘highly sensitive informa- for prevention. My legislation today General Sec. 602. Federal injunctive authority tion’’ to include a physical copy of a will make fewer suffer from identity driver’s license, the driver identifica- theft in the first place. TITLE I—COMMERCIAL SALE AND MAR- tion number, birth date, information KETING OF PERSONALLY IDENTIFIABLE I look forward to working with my INFORMATION on the driver’s physical characteristics colleagues to enact this legislation. SEC. 101. COLLECTION AND DISTRIBUTION OF and any biometric identifiers, such as a I ask unanimous consent that the PERSONALLY IDENTIFIABLE INFOR- fingerprint, that are found on the driv- text of the legislation be printed in the MATION. er’s license. RECORD. (a) PROHIBITION.—

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(1) IN GENERAL.—It is unlawful for a com- (B) is used for the sole purpose of facili- 101 of this Act shall issue regulations requir- mercial entity to collect personally identifi- tating this transaction; and ing that such entity comply with such sec- able information and disclose such informa- (C) in which the entity receiving or obtain- tion or forfeit some or all of such assistance. tion to any nonaffiliated third party for mar- ing such information is limited, by contract, Such regulations shall prescribe sanctions keting purposes or sell such information to to use such formation for the purpose of for noncompliance, require that such depart- any nonaffiliated third party, unless the completing the transaction. ment or agency provide notice of failure to commercial entity provides— SEC. 102. ENFORCEMENT. comply with such section prior to any action (A) notice to the individual to whom the (a) IN GENERAL.—In accordance with the being taken against such recipient, and re- information relates in accordance with the provisions of this section, the Federal Trade quire that a determination be made prior to requirements of subsection (b); and Commission shall have the authority to en- any action being taken against such recipi- (B) an opportunity for such individual to force any violation of section 101 of this Act. ent that compliance cannot be secured by restrict the disclosure or sale of such infor- (b) VIOLATIONS.—The Federal Trade Com- voluntary means. mation. mission shall treat a violation of section 101 (2) FEDERAL FINANCIAL ASSISTANCE.—The (2) EXCEPTION.—A commercial entity may as a violation of a rule under section term ‘‘Federal financial assistance’’ means collect personally identifiable information 18a(a)(1)(B) of the Federal Trade Commission assistance through a grant, cooperative and use such information to market to po- Act (15 U.S.C. 57a(a)(1)(B)). agreement, loan, or contract other than a tential customers such entity’s product. (c) TRANSFER OF ENFORCEMENT AUTHOR- contract of insurance or guaranty. (b) NOTICE.— ITY.—The Federal Trade Commission shall (1) IN GENERAL.—A notice under subsection SEC. 103. SAFE HARBOR. (a) shall contain statements describing the promulgate rules in accordance with section A commercial entity may not be held to following: 553 of title 5, United States Code, allowing have violated any provision of this title if (A) The identity of the commercial entity for the transfer of enforcement authority such entity complies with self-regulatory collecting the personally identifiable infor- from the Federal Trade Commission to a guidelines that— mation. Federal agency regarding section 101 of this (1) are issued by seal programs or rep- (B) The types of personally identifiable in- Act. The Federal Trade Commission may resentatives of the marketing or online in- formation that are being collected on the in- permit a Federal agency to enforce any vio- dustries or by any other person; and dividual. lation of section 101 if such agency submits (2) are approved by the Federal Trade Com- (C) How the commercial entity may use a written request to the Commission to en- mission, after public comment has been re- such information. force such violations and includes in such re- ceived on such guidelines by the Commis- (D) A description of the categories of po- quest— sion, as meeting the requirements of this tential recipients of such personally identifi- (1) a description of the entities regulated title. able information. by such agency that will be subject to the SEC. 104. DEFINITIONS. (E) Whether the individual is required to provisions of section 101; provide personally identifiable information (2) an assurance that such agency has suffi- In this title: in order to do business with the commercial cient authority over the entities to enforce (1) COMMERCIAL ENTITY.—The term ‘‘com- entity. violations of section 101; and mercial entity’’— (F) How an individual may decline to have (3) a list of proposed rules that such agency (A) means any person offering products or such personally identifiable information shall use in regulating such entities and en- services involving commerce— used or sold as described in subsection (a). forcing section 101. (i) among the several States or with 1 or (2) TIME OF NOTICE.—Notice shall be con- (d) ACTIONS BY THE COMMISSION.—Absent more foreign nations; veyed prior to the sale or use of the person- transfer of enforcement authority to a Fed- (ii) in any territory of the United States or ally identifiable information as described in eral agency under subsection (c), the Federal in the District of Columbia, or between any subsection (a) in such a manner as to allow Trade Commission shall prevent any person such territory and— the individual a reasonable period of time to from violating section 101 in the same man- (I) another such territory; or consider the notice and limit such sale or ner, by the same means, and with the same (II) any State or foreign nation; or use. jurisdiction, powers, and duties as provided (iii) between the District of Columbia and (3) MEDIUM OF NOTICE.—The medium for to such Commission under the Federal Trade any State, territory, or foreign nation; and providing notice must be— Commission Act (15 U.S.C. 41 et seq.). Any (B) does not include— (A) the same medium in which the person- entity that violates section 101 is subject to (i) any nonprofit entity that would other- ally identifiable information is or will be the penalties and entitled to the privileges wise be exempt from coverage under section collected, or a medium approved by the indi- and immunities provided in such Act in the 5 of the Federal Trade Commission Act (15 vidual; or same manner, by the same means, and with U.S.C. 45); (B) in the case of oral communication, no- the same jurisdiction, power, and duties (ii) any financial institution that is subject tice may be conveyed orally or in writing. under such Act. to title V of the Gramm-Leach-Bliley Act (15 (4) FORM OF NOTICE.—The notice shall be (e) RELATIONSHIP TO OTHER LAWS.— U.S.C. 6801 et seq.); or clear and conspicuous. (1) COMMISSION AUTHORITY.—Nothing con- (iii) any group health plan, health insur- (c) OPT-OUT.— tained in this title shall be construed to ance issuer, or other entity that is subject to (1) OPPORTUNITY TO OPT-OUT OF SALE OR limit authority provided to the Commission the Health Insurance Portability and Ac- MARKETING.—The opportunity provided to under any other law. countability Act of 1996 (42 U.S.C. 201 note). limit the sale of personally identifiable in- (2) COMMUNICATIONS ACT.—Nothing in sec- (2) COMMISSION.—The term ‘‘Commission’’ formation to nonaffiliated third parties or tion 101 requires an operator of a website to means the Federal Trade Commission. the disclosure of such information for mar- take any action that is inconsistent with the (3) INDIVIDUAL.—The term ‘‘individual’’ keting purposes, shall be easy to use, acces- requirements of section 222 or 631 of the means a person whose personally identifying sible and available in the medium the infor- Communications Act of 1934 (47 U.S.C. 222 information has been, is, or will be collected mation is collected, or in a medium approved and 5551). by a commercial entity. by the individual. (3) OTHER ACTS.—Nothing in this title is in- (4) MARKETING.—The term ‘‘marketing’’ (2) DURATION OF LIMITATION.—An individ- tended to affect the applicability or the en- means to make a communication about a ual’s limitation on the sale or marketing of forceability of any provision of, or any product or service a purpose of which is to personally identifiable information shall be amendment made by— encourage recipients of the communication considered permanent, unless otherwise spec- (A) the Children’s Online Privacy Protec- to purchase or use the product or service. ified by the individual. tion Act of 1998 (15 U.S.C. 6501 et seq.); (5) MEDIUM.—The term ‘‘medium’’ means (3) REVOCATION OF CONSENT.—After an indi- (B) title V of the Gramm-Leach-Bliley Act; any channel or system of communication in- vidual grants consent to the use of that indi- (C) the Health Insurance Portability and cluding oral, written, and online commu- vidual’s personally identifiable information, Accountability Act of 1996; or nication. the individual may revoke the consent at (D) the Fair Credit Reporting Act. (6) NONAFFILIATED THIRD PARTY.—The term any time, except to the extent that the com- (f) PUBLIC RECORDS.—Nothing in this title ‘‘nonaffiliated third party’’ means any entity mercial entity has taken action in reliance shall be construed to restrict commercial en- that is not related by common ownership or thereon. The commercial entity shall pro- tities from obtaining or disclosing person- affiliated by corporate control with, the vide the individual an opportunity to revoke ally identifying information from public commercial entity, but does not include a consent that is easy to use, accessible, and records. joint employee of such institution. available in the medium the information was (g) CIVIL PENALTIES.—In addition to any (7) PERSONALLY IDENTIFIABLE INFORMA- or is collected. other penalty applicable to a violation of TION.—The term ‘‘personally identifiable in- (4) NOT APPLICABLE.—This section shall not section 101(a), a penalty of up to $25,000 may formation’’ means individually identifiable apply to disclosure of personally identifiable be issued for each violation. information about the individual that is col- information— (h) ENFORCEMENT REGARDING PROGRAMS.— lected including— (A) that is necessary to facilitate a trans- (1) IN GENERAL.—A Federal agency or de- (A) a first, middle, or last name, whether action specifically requested by the con- partment providing financial assistance to given at birth or adoption, assumed, or le- sumer; any entity required to comply with section gally changed;

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PROHIBITION OF THE DISPLAY, SALE, sale, lease, franchising, or merger of all, or a (C) an e-mail address; OR PURCHASE OF SOCIAL SECURITY portion of, a business; (D) a telephone number; NUMBERS. ‘‘(6) if the transfer of such a number is part (E) a photograph or other form of visual (a) PROHIBITION.— of a data matching program involving a Fed- identification; (1) IN GENERAL.—Chapter 47 of title 18, eral, State, or local agency; or (F) a birth date, birth certificate number, United States Code, is amended by inserting ‘‘(7) if such number is required to be sub- or place of birth for that person; or after section 1028 the following: mitted as part of the process for applying for (G) information concerning the individual ‘‘§ 1028A. Prohibition of the display, sale, or any type of Federal, State, or local govern- that is combined with any other identifier in purchase of social security numbers ment benefit or program; this paragraph. ‘‘(a) DEFINITIONS.—In this section: except that, nothing in this subsection shall (8) SALE; SELL; SOLD.—The terms ‘‘sale’’, ‘‘(1) DISPLAY.—The term ‘display’ means to be construed as permitting a professional or ‘‘sell’’, and ‘‘sold’’, with respect to person- intentionally communicate or otherwise commercial user to display or sell a social ally identifiable information, mean the ex- make available (on the Internet or in any security number to the general public. changing of such information for any thing other manner) to the general public an indi- ‘‘(f) LIMITATION.—Nothing in this section of value, directly or indirectly, including the vidual’s social security number. shall prohibit or limit the display, sale, or purchase of social security numbers as per- licensing, bartering, or renting of such infor- ‘‘(2) PERSON.—The term ‘person’ means any mation. individual, partnership, corporation, trust, mitted under title V of the Gramm-Leach- Bliley Act, or for the purpose of affiliate (9) WRITING.—The term ‘‘writing’’ means estate, cooperative, association, or any other sharing as permitted under the Fair Credit writing in either a paper-based or computer- entity. Reporting Act, except that no entity regu- based form, including electronic and digital ‘‘(3) PURCHASE.—The term ‘purchase’ lated under such Acts may make social secu- signatures. means providing directly or indirectly, any- rity numbers available to the general public, SEC. 105. PREEMPTION. thing of value in exchange for a social secu- as may be determined by the appropriate The provisions of this title shall supersede rity number. regulators under such Acts. For purposes of any statutory and common law of States and ‘‘(4) SALE.—The term ‘sale’ means obtain- this subsection, the general public shall not their political subdivisions insofar as that ing, directly or indirectly, anything of value include affiliates or unaffiliated third-party law may now or hereafter relate to the— in exchange for a social security number. business entities as may be defined by the (1) collection and disclosure of personally ‘‘(5) STATE.—The term ‘State’ means any appropriate regulators.’’. identifiable information for marketing pur- State of the United States, the District of (2) CONFORMING AMENDMENT.—The chapter poses; and Columbia, Puerto Rico, the Northern Mar- analysis for chapter 47 of title 18, United (2) collection and sale of personally identi- iana Islands, the United States Virgin Is- States Code, is amended by inserting after fiable information. lands, Guam, American Samoa, and any ter- the item relating to section 1028 the fol- SEC. 106. EFFECTIVE DATE. ritory or possession of the United States. lowing: This title and the amendments made by ‘‘(b) LIMITATION ON DISPLAY.—Except as this title shall take effect 1 year after the provided in section 1028B, no person may dis- ‘‘1028A. Prohibition of the display, sale, date of enactment of this Act. play any individual’s social security number or purchase of social security numbers’’. TITLE II—SOCIAL SECURITY NUMBER to the general public without the affirma- MISUSE PREVENTION tively expressed consent of the individual. (b) STUDY; REPORT.— ‘‘(c) LIMITATION ON SALE OR PURCHASE.— (1) IN GENERAL.—The Attorney General SEC. 201. FINDINGS. Except as otherwise provided in this section, shall conduct a study and prepare a report on Congress makes the following findings: no person may sell or purchase any individ- all of the uses of social security numbers (1) The inappropriate display, sale, or pur- ual’s social security number without the af- permitted, required, authorized, or excepted chase of social security numbers has contrib- firmatively expressed consent of the indi- under any Federal law. The report shall in- uted to a growing range of illegal activities, vidual. clude a detailed description of the uses al- including fraud, identity theft, and, in some ‘‘(d) PREREQUISITES FOR CONSENT.—In order lowed as of the date of enactment of this Act cases, stalking and other violent crimes. for consent to exist under subsection (b) or and shall evaluate whether such uses should (2) While financial institutions, health care (c), the person displaying or seeking to dis- be continued or discontinued by appropriate providers, and other entities have often used play, selling or attempting to sell, or pur- legislative action. social security numbers to confirm the iden- chasing or attempting to purchase, an indi- (2) REPORT.—Not later than 1 year after tity of an individual, the general display to vidual’s social security number shall— the date of enactment of this Act, the Attor- the public, sale, or purchase of these num- ‘‘(1) inform the individual of the general ney General shall report to Congress findings bers has been used to commit crimes, and purpose for which the number will be used, under this subsection. The report shall in- also can result in serious invasions of indi- the types of persons to whom the number clude such recommendations for legislation vidual privacy. may be available, and the scope of trans- based on criteria the Attorney General de- (3) The Federal Government requires vir- actions permitted by the consent; and termines to be appropriate. tually every individual in the United States ‘‘(2) obtain the affirmatively expressed (c) EFFECTIVE DATE.—The amendments to obtain and maintain a social security consent (electronically or in writing) of the made by this section shall take effect on the number in order to pay taxes, to qualify for individual. date that is 30 days after the date on which social security benefits, or to seek employ- ‘‘(e) EXCEPTIONS.—Nothing in this section the final regulations promulgated under sec- ment. An unintended consequence of these shall be construed to prohibit or limit the tion 5 are published in the Federal Register. requirements is that social security numbers display, sale, or purchase of a social security SEC. 203. APPLICATION OF PROHIBITION OF THE have become one of the tools that can be number— DISPLAY, SALE, OR PURCHASE OF used to facilitate crime, fraud, and invasions ‘‘(1) required, authorized, or excepted SOCIAL SECURITY NUMBERS TO of the privacy of the individuals to whom the under any Federal law; PUBLIC RECORDS. numbers are assigned. Because the Federal ‘‘(2) for a public health purpose, including (a) PUBLIC RECORDS EXCEPTION.— Government created and maintains this sys- the protection of the health or safety of an (1) IN GENERAL.—Chapter 47 of title 18, tem, and because the Federal Government individual in an emergency situation; United States Code (as amended by section does not permit individuals to exempt them- ‘‘(3) for a national security purpose; 3(a)(1)), is amended by inserting after section selves from those requirements, it is appro- ‘‘(4) for a law enforcement purpose, includ- 1028A the following: priate for the Federal Government to take ing the investigation of fraud and the en- ‘‘§ 1028B. Display, sale, or purchase of public steps to stem the abuse of social security forcement of a child support obligation; records containing social security numbers numbers. ‘‘(5) if the display, sale, or purchase of the ‘‘(a) DEFINITION.—In this section, the term (4) The display, sale, or purchase of social number is for a use occurring as a result of ‘public record’ means any governmental security numbers in no way facilitates unin- an interaction between businesses, govern- record that is made available to the general hibited, robust, and wide-open public debate, ments, or business and government (regard- public. and restrictions on such display, sale, or pur- less of which entity initiates the inter- ‘‘(b) IN GENERAL.—Except as provided in chase would not affect public debate. action), including, but not limited to— subsections (c), (d), and (e), section 1028A (5) No one should seek to profit from the ‘‘(A) the prevention of fraud (including shall not apply to a public record. display, sale, or purchase of social security fraud in protecting an employee’s right to ‘‘(c) PUBLIC RECORDS ON THE INTERNET OR IN numbers in circumstances that create a sub- employment benefits); AN ELECTRONIC MEDIUM.— stantial risk of physical, emotional, or finan- ‘‘(B) the facilitation of credit checks or the ‘‘(1) IN GENERAL.—Section 1028A shall apply cial harm to the individuals to whom those facilitation of background checks of employ- to any public record first posted onto the numbers are assigned. ees, prospective employees, or volunteers; Internet or provided in an electronic medium (6) Consequently, this title provides each ‘‘(C) the retrieval of other information by, or on behalf of a government entity after individual that has been assigned a social se- from other businesses, commercial enter- the date of enactment of this section, except curity number some degree of protection prises, government entities, or private non- as limited by the Attorney General in ac- from the display, sale, and purchase of that profit organizations; or cordance with paragraph (2).

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‘‘(2) EXCEPTION FOR GOVERNMENT ENTITIES eral were to determine that section 1028A other heads of Federal agencies as the Attor- ALREADY PLACING PUBLIC RECORDS ON THE should apply to such records.’’. ney General determines appropriate, shall INTERNET OR IN ELECTRONIC FORM.—Not later (2) CONFORMING AMENDMENT.—The chapter conduct such rulemaking procedures in ac- than 60 days after the date of enactment of analysis for chapter 47 of title 18, United cordance with subchapter II of chapter 5 of this section, the Attorney General shall States Code (as amended by section title 5, United States Code, as are necessary issue regulations regarding the applicability 202(a)(2)), is amended by inserting after the to promulgate regulations to implement and of section 1028A to any record of a category item relating to section 1028A the following: clarify the uses occurring as a result of an of public records first posted onto the Inter- ‘‘1028B. Display, sale, or purchase of pub- interaction between businesses, govern- net or provided in an electronic medium by, lic records containing social se- ments, or business and government (regard- or on behalf of a government entity prior to curity numbers’’. less of which entity initiates the interaction) the date of enactment of this section. The (b) STUDY AND REPORT ON SOCIAL SECURITY permitted under section 1028A(e)(5) of title regulations will determine which individual NUMBERS IN PUBLIC RECORDS.— 18, United States Code (as added by section records within categories of records of these (1) STUDY.—The Comptroller General of the 202(a)(1)). government entities, if any, may continue to United States shall conduct a study and pre- (2) FACTORS TO BE CONSIDERED.—In promul- be posted on the Internet or in electronic pare a report on social security numbers in gating the regulations required under para- form after the effective date of this section. public records. In developing the report, the graph (1), the Attorney General shall, at a In promulgating these regulations, the At- Comptroller General shall consult with the minimum, consider the following: torney General may include in the regula- Administrative Office of the United States (A) The benefit to a particular business, to tions a set of procedures for implementing Courts, State and local governments that customers of the business, and to the general the regulations and shall consider the fol- store, maintain, or disseminate public public of the display, sale, or purchase of an lowing: records, and other stakeholders, including individual’s social security number. ‘‘(A) The cost and availability of tech- members of the private sector who routinely (B) The costs that businesses, customers of nology available to a governmental entity to use public records that contain social secu- businesses, and the general public may incur redact social security numbers from public rity numbers. as a result of prohibitions on the display, records first provided in electronic form (2) REPORT.—Not later than 1 year after sale, or purchase of social security numbers. after the effective date of this section. the date of enactment of this Act, the Comp- (C) The risk that a particular business ‘‘(B) The cost or burden to the general pub- troller General of the United States shall practice will promote the use of a social se- lic, businesses, commercial enterprises, non- submit to Congress a report on the study curity number to commit fraud, deception, profit organizations, and to Federal, State, conducted under paragraph (1). The report or crime. and local governments of complying with (D) The presence of adequate safeguards section 1028A with respect to such records. shall include a detailed description of the ac- tivities and results of the study and rec- and procedures to prevent— ‘‘(C) The benefit to the general public, (i) misuse of social security numbers by businesses, commercial enterprises, non- ommendations for such legislative action as the Comptroller General considers appro- employees within a business; and profit organizations, and to Federal, State, (ii) misappropriation of social security and local governments if the Attorney Gen- priate. The report, at a minimum, shall in- clude— numbers by the general public, while permit- eral were to determine that section 1028A ting internal business uses of such numbers. should apply to such records. (A) a review of the uses of social security numbers in non-federal public records; (E) The presence of procedures to prevent Nothing in the regulation shall permit a pub- identity thieves, stalkers, and other individ- lic entity to post a category of public records (B) a review of the manner in which public records are stored (with separate reviews for uals with ill intent from posing as legitimate on the Internet or in electronic form after businesses to obtain social security numbers. the effective date of this section if such cat- both paper records and electronic records); (C) a review of the advantages or utility of SEC. 205. TREATMENT OF SOCIAL SECURITY NUM- egory had not been placed on the Internet or BERS ON GOVERNMENT DOCU- in electronic form prior to such effective public records that contain social security numbers, including the utility for law en- MENTS. date. (a) PROHIBITION OF USE OF SOCIAL SECURITY ‘‘(d) HARVESTED SOCIAL SECURITY NUM- forcement, and for the promotion of home- land security; ACCOUNT NUMBERS ON CHECKS ISSUED FOR BERS.—Section 1028A shall apply to any pub- PAYMENT BY GOVERNMENTAL AGENCIES.— lic record of a government entity which con- (D) a review of the disadvantages or draw- backs of public records that contain social (1) IN GENERAL.—Section 205(c)(2)(C) of the tains social security numbers extracted from Social Security Act (42 U.S.C. 405(c)(2)(C)) is other public records for the purpose of dis- security numbers, including criminal activ- ity, compromised personal privacy, or amended by adding at the end the following: playing or selling such numbers to the gen- ‘‘(x) No Federal, State, or local agency threats to homeland security; eral public. may display the social security account (E) the costs and benefits for State and ‘‘(e) ATTORNEY GENERAL RULEMAKING ON number of any individual, or any derivative PAPER RECORDS.— local governments of removing social secu- of such number, on any check issued for any ‘‘(1) IN GENERAL.—Not later than 60 days rity numbers from public records, including payment by the Federal, State, or local after the date of enactment of this section, a review of current technologies and proce- agency.’’. dures for removing social security numbers the Attorney General shall determine the (2) EFFECTIVE DATE.—The amendment feasibility and advisability of applying sec- from public records; and made by this subsection shall apply with re- tion 1028A to the records listed in paragraph (F) an assessment of the benefits and costs spect to violations of section 205(c)(2)(C)(x) (2) when they appear on paper or on another to businesses, their customers, and the gen- of the Social Security Act (42 U.S.C. nonelectronic medium. If the Attorney Gen- eral public of prohibiting the display of so- 405(c)(2)(C)(x)), as added by paragraph (1), oc- eral deems it appropriate, the Attorney Gen- cial security numbers on public records (with curring after the date that is 3 years after eral may issue regulations applying section separate assessments for both paper records the date of enactment of this Act. 1028A to such records. and electronic records). (b) PROHIBITION OF APPEARANCE OF SOCIAL ‘‘(2) LIST OF PAPER AND OTHER NONELEC- (c) EFFECTIVE DATE.—The prohibition with SECURITY ACCOUNT NUMBERS ON DRIVER’S LI- TRONIC RECORDS.—The records listed in this respect to electronic versions of new classes CENSES OR MOTOR VEHICLE REGISTRATION.— paragraph are as follows: of public records under section 1028B(b) of (1) IN GENERAL.—Section 205(c)(2)(C)(vi) of ‘‘(A) Professional or occupational licenses. title 18, United States Code (as added by sub- the Social Security Act (42 U.S.C. ‘‘(B) Marriage licenses. section (a)(1)) shall not take effect until the 405(c)(2)(C)(vi)) is amended— ‘‘(C) Birth certificates. date that is 60 days after the date of enact- (A) by inserting ‘‘(I)’’ after ‘‘(vi)’’; and ‘‘(D) Death certificates. ment of this Act. (B) by adding at the end the following: ‘‘(E) Other short public documents that SEC. 204. RULEMAKING AUTHORITY OF THE AT- ‘‘(II)(aa) An agency of a State (or political display a social security number in a routine TORNEY GENERAL. subdivision thereof), in the administration of and consistent manner on the face of the (a) IN GENERAL.—Except as provided in any driver’s license or motor vehicle reg- document. subsection (b), the Attorney General may istration law within its jurisdiction, may not ‘‘(3) CRITERIA FOR ATTORNEY GENERAL RE- prescribe such rules and regulations as the display the social security account numbers VIEW.—In determining whether section 1028A Attorney General deems necessary to carry issued by the Commissioner of Social Secu- should apply to the records listed in para- out the provisions of section 1028A(e)(5) of rity, or any derivative of such numbers, on graph (2), the Attorney General shall con- title 18, United States Code (as added by sec- the face of any driver’s license or motor ve- sider the following: tion 202(a)(1)). hicle registration or any other document ‘‘(A) The cost or burden to the general pub- (b) DISPLAY, SALE, OR PURCHASE RULE- issued by such State (or political subdivision lic, businesses, commercial enterprises, non- MAKING WITH RESPECT TO INTERACTIONS BE- thereof) to an individual for purposes of iden- profit organizations, and to Federal, State, TWEEN BUSINESSES, GOVERNMENTS, OR BUSI- tification of such individual. and local governments of complying with NESS AND GOVERNMENT.— ‘‘(bb) Nothing in this subclause shall be section 1028A. (1) IN GENERAL.—Not later than 1 year after construed as precluding an agency of a State ‘‘(B) The benefit to the general public, the date of enactment of this Act, the Attor- (or political subdivision thereof), in the ad- businesses, commercial enterprises, non- ney General, in consultation with the Com- ministration of any driver’s license or motor profit organizations, and to Federal, State, missioner of Social Security, the Chairman vehicle registration law within its jurisdic- and local governments if the Attorney Gen- of the Federal Trade Commission, and such tion, from using a social security account

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00188 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S295 number for an internal use or to link with dents of the State in a district court of the mined to be necessary or advisable with re- the database of an agency of another State United States of appropriate jurisdiction spect to such section, including a rec- that is responsible for the administration of to— ommendation regarding whether to reau- any driver’s license or motor vehicle reg- ‘‘(i) enjoin that practice; thorize such section. istration law.’’. ‘‘(ii) enforce compliance with such section; (c) EFFECTIVE DATE.—The amendment (2) EFFECTIVE DATE.—The amendments ‘‘(iii) obtain damages, restitution, or other made by subsection (a) shall apply to re- made by this subsection shall apply with re- compensation on behalf of residents of the quests to provide a social security number spect to licenses, registrations, and other State; or occurring after the date that is 1 year after documents issued or reissued after the date ‘‘(iv) obtain such other relief as the court the date of enactment of this Act. that is 1 year after the date of enactment of may consider appropriate. SEC. 207. EXTENSION OF CIVIL MONETARY PEN- this Act. ‘‘(B) NOTICE.— ALTIES FOR MISUSE OF A SOCIAL SECURITY NUMBER. (c) PROHIBITION OF INMATE ACCESS TO SO- ‘‘(i) IN GENERAL.—Before filing an action (a) TREATMENT OF WITHHOLDING OF MATE- CIAL SECURITY ACCOUNT NUMBERS.— under subparagraph (A), the attorney gen- RIAL FACTS.— (1) IN GENERAL.—Section 205(c)(2)(C) of the eral of the State involved shall provide to (1) CIVIL PENALTIES.—The first sentence of Social Security Act (42 U.S.C. 405(c)(2)(C)) the Attorney General— section 1129(a)(1) of the Social Security Act (as amended by subsection (b)) is amended by ‘‘(I) written notice of the action; and (42 U.S.C. 1320a–8(a)(1)) is amended— adding at the end the following: ‘‘(II) a copy of the complaint for the ac- ‘‘(xi) No Federal, State, or local agency tion. (A) by striking ‘‘who’’ and inserting ‘‘who—’’; may employ, or enter into a contract for the ‘‘(ii) EXEMPTION.— (B) by striking ‘‘makes’’ and all that fol- use or employment of, prisoners in any ca- ‘‘(I) IN GENERAL.—Clause (i) shall not apply lows through ‘‘shall be subject to’’ and in- pacity that would allow such prisoners ac- with respect to the filing of an action by an serting the following: cess to the social security account numbers attorney general of a State under this sub- ‘‘(A) makes, or causes to be made, a state- of other individuals. For purposes of this section, if the State attorney general deter- ment or representation of a material fact, clause, the term ‘prisoner’ means an indi- mines that it is not feasible to provide the for use in determining any initial or con- vidual confined in a jail, prison, or other notice described in such subparagraph before tinuing right to or the amount of monthly penal institution or correctional facility the filing of the action. insurance benefits under title II or benefits pursuant to such individual’s conviction of a ‘‘(II) NOTIFICATION.—With respect to an ac- or payments under title VIII or XVI, that the criminal offense.’’. tion described in subclause (I), the attorney general of a State shall provide notice and a person knows or should know is false or mis- (2) EFFECTIVE DATE.—The amendment leading; copy of the complaint to the Attorney Gen- made by this subsection shall apply with re- ‘‘(B) makes such a statement or represen- eral at the same time as the State attorney spect to employment of prisoners, or entry tation for such use with knowing disregard general files the action. into contract with prisoners, after the date for the truth; or ‘‘(2) INTERVENTION.— that is 1 year after the date of enactment of ‘‘(C) omits from a statement or representa- ‘‘(A) IN GENERAL.—On receiving notice this Act. tion for such use, or otherwise withholds dis- under paragraph (1)(B), the Attorney General SEC. 206. LIMITS ON PERSONAL DISCLOSURE OF closure of, a fact which the individual knows shall have the right to intervene in the ac- A SOCIAL SECURITY NUMBER FOR or should know is material to the determina- CONSUMER TRANSACTIONS. tion that is the subject of the notice. tion of any initial or continuing right to or (a) IN GENERAL.—Part A of title XI of the ‘‘(B) EFFECT OF INTERVENTION.—If the At- the amount of monthly insurance benefits Social Security Act (42 U.S.C. 1301 et seq.) is torney General intervenes in the action under title II or benefits or payments under amended by adding at the end the following: under paragraph (1), the Attorney General title VIII or XVI and the individual knows, shall have the right to be heard with respect ‘‘SEC. 1150A. LIMITS ON PERSONAL DISCLOSURE or should know, that the statement or rep- OF A SOCIAL SECURITY NUMBER to any matter that arises in that action. resentation with such omission is false or FOR CONSUMER TRANSACTIONS. ‘‘(3) CONSTRUCTION.—For purposes of bring- misleading or that the withholding of such ‘‘(a) IN GENERAL.—A commercial entity ing any civil action under paragraph (1), disclosure is misleading, shall be subject to’’; may not require an individual to provide the nothing in this section shall be construed to (C) by inserting ‘‘or each receipt of such individual’s social security number when prevent an attorney general of a State from benefits while withholding disclosure of such purchasing a commercial good or service or exercising the powers conferred on such at- fact’’ after ‘‘each such statement or rep- deny an individual the good or service for re- torney general by the laws of that State to— resentation’’; fusing to provide that number except— ‘‘(A) conduct investigations; (D) by inserting ‘‘or because of such with- ‘‘(1) for any purpose relating to— ‘‘(B) administer oaths or affirmations; or holding of disclosure of a material fact’’ ‘‘(A) obtaining a consumer report for any ‘‘(C) compel the attendance of witnesses or after ‘‘because of such statement or rep- purpose permitted under the Fair Credit Re- the production of documentary and other resentation’’; and porting Act; evidence. (E) by inserting ‘‘or such a withholding of ‘‘(B) a background check of the individual ‘‘(4) ACTIONS BY THE ATTORNEY GENERAL OF disclosure’’ after ‘‘such a statement or rep- conducted by a landlord, lessor, employer, THE UNITED STATES.—In any case in which an resentation’’. voluntary service agency, or other entity as action is instituted by or on behalf of the At- (2) ADMINISTRATIVE PROCEDURE FOR IMPOS- determined by the Attorney General; torney General for violation of a practice ING PENALTIES.—The first sentence of section ‘‘(C) law enforcement; or that is prohibited under this section, no 1129A(a) of the Social Security Act (42 U.S.C. ‘‘(D) a Federal, State, or local law require- State may, during the pendency of that ac- 1320a–8a(a)) is amended— ment; or tion, institute an action under paragraph (1) (A) by striking ‘‘who’’ and inserting ‘‘(2) if the social security number is nec- against any defendant named in the com- ‘‘who—’’; and essary to verify the identity of the consumer plaint in that action for violation of that (B) by striking ‘‘makes’’ and all that fol- to effect, administer, or enforce the specific practice. lows through ‘‘shall be subject to’’ and in- transaction requested or authorized by the ‘‘(5) VENUE; SERVICE OF PROCESS.— serting the following: consumer, or to prevent fraud. ‘‘(A) VENUE.—Any action brought under ‘‘(1) makes, or causes to be made, a state- ‘‘(b) APPLICATION OF CIVIL MONEY PEN- paragraph (1) may be brought in the district ment or representation of a material fact, ALTIES.—A violation of this section shall be court of the United States that meets appli- for use in determining any initial or con- deemed to be a violation of section cable requirements relating to venue under tinuing right to or the amount of monthly 1129(a)(3)(F). section 1391 of title 28, United States Code. insurance benefits under title II or benefits ‘‘(c) APPLICATION OF CRIMINAL PENALTIES.— ‘‘(B) SERVICE OF PROCESS.—In an action or payments under title VIII or XVI, that the A violation of this section shall be deemed to brought under paragraph (1), process may be person knows or should know is false or mis- be a violation of section 208(a)(8). served in any district in which the defend- leading; ‘‘(d) LIMITATION ON CLASS ACTIONS.—No ant— ‘‘(2) makes such a statement or representa- class action alleging a violation of this sec- ‘‘(i) is an inhabitant; or tion for such use with knowing disregard for tion shall be maintained under this section ‘‘(ii) may be found. the truth; or by an individual or any private party in Fed- ‘‘(f) SUNSET.—This section shall not apply eral or State court. on or after the date that is 6 years after the ‘‘(3) omits from a statement or representa- ‘‘(e) STATE ATTORNEY GENERAL ENFORCE- effective date of this section.’’. tion for such use, or otherwise withholds dis- MENT.— (b) EVALUATION AND REPORT.—Not later closure of, a fact which the individual knows ‘‘(1) IN GENERAL.— than the date that is 6 years and 6 months or should know is material to the determina- ‘‘(A) CIVIL ACTIONS.—In any case in which after the date of enactment of this Act, the tion of any initial or continuing right to or the attorney general of a State has reason to Attorney General, in consultation with the the amount of monthly insurance benefits believe that an interest of the residents of chairman of the Federal Trade Commission, under title II or benefits or payments under that State has been or is threatened or ad- shall issue a report evaluating the effective- title VIII or XVI and the individual knows, versely affected by the engagement of any ness and efficiency of section 1150A of the or should know, that the statement or rep- person in a practice that is prohibited under Social Security Act (as added by subsection resentation with such omission is false or this section, the State, as parens patriae, (a)) and shall make recommendations to misleading or that the withholding of such may bring a civil action on behalf of the resi- Congress as to any legislative action deter- disclosure is misleading, shall be subject to’’.

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(b) APPLICATION OF CIVIL MONEY PENALTIES (2) Section 1129(c)(1) of the Social Security (B) 3 years after the date on which the al- TO ELEMENTS OF CRIMINAL VIOLATIONS.—Sec- Act (42 U.S.C. 1320a–8(c)(1)) is amended by leged violation was or should have been rea- tion 1129(a) of the Social Security Act (42 striking ‘‘and representations’’ and inserting sonably discovered by the aggrieved indi- U.S.C. 1320a–8(a)), as amended by subsection ‘‘, representations, or actions’’. vidual. (a)(1), is amended— (3) Section 1129(e)(1)(A) of the Social Secu- (3) NONEXCLUSIVE REMEDY.—The remedy (1) by redesignating paragraph (2) as para- rity Act (42 U.S.C. 1320a–8(e)(1)(A)) is amend- provided under this subsection shall be in ad- graph (4); ed by striking ‘‘statement or representation dition to any other remedies available to the (2) by redesignating the last sentence of referred to in subsection (a) was made’’ and individual. paragraph (1) as paragraph (2) and inserting inserting ‘‘violation occurred’’. (b) CIVIL PENALTIES.— such paragraph after paragraph (1); and (e) EFFECTIVE DATES.— (1) IN GENERAL.—Any person who the At- (3) by inserting after paragraph (2) (as so (1) IN GENERAL.—Except as provided in torney General determines has violated any redesignated) the following: paragraph (2), the amendments made by this section of this title or of any amendments ‘‘(3) Any person (including an organization, section shall apply with respect to violations made by this title shall be subject, in addi- agency, or other entity) who— of sections 1129 and 1129A of the Social Secu- tion to any other penalties that may be pre- ‘‘(A) uses a social security account number rity Act (42 U.S.C. 1320–8 and 1320a–8a), as scribed by law— that such person knows or should know has amended by this section, committed after (A) to a civil penalty of not more than been assigned by the Commissioner of Social the date of enactment of this Act. $5,000 for each such violation; and Security (in an exercise of authority under (2) VIOLATIONS BY GOVERNMENT AGENTS IN (B) to a civil penalty of not more than section 205(c)(2) to establish and maintain POSSESSION OF SOCIAL SECURITY NUMBERS.— $50,000, if the violations have occurred with records) on the basis of false information fur- Section 1129(a)(3)(I) of the Social Security such frequency as to constitute a general nished to the Commissioner by any person; Act (42 U.S.C. 1320a–8(a)(3)(I)), as added by business practice. subsection (b), shall apply with respect to (2) DETERMINATION OF VIOLATIONS.—Any ‘‘(B) falsely represents a number to be the violations of that section occurring on or willful violation committed contempora- social security account number assigned by after the effective date described in section neously with respect to the social security the Commissioner of Social Security to any 202(c). numbers of 2 or more individuals by means of individual, when such person knows or mail, telecommunication, or otherwise, shall should know that such number is not the so- SEC. 208. CRIMINAL PENALTIES FOR THE MISUSE OF A SOCIAL SECURITY NUMBER. be treated as a separate violation with re- cial security account number assigned by the (a) PROHIBITION OF WRONGFUL USE AS PER- spect to each such individual. Commissioner to such individual; SONAL IDENTIFICATION NUMBER.—No person (3) ENFORCEMENT PROCEDURES.—The provi- ‘‘(C) knowingly alters a social security may obtain any individual’s social security sions of section 1128A of the Social Security card issued by the Commissioner of Social number for purposes of locating or identi- Act (42 U.S.C. 1320a–7a), other than sub- Security, or possesses such a card with in- fying an individual with the intent to phys- sections (a), (b), (f), (h), (i), (j), (m), and (n) tent to alter it; ically injure, harm, or use the identity of the and the first sentence of subsection (c) of ‘‘(D) knowingly displays, sells, or pur- individual for any illegal purpose. such section, and the provisions of sub- chases a card that is, or purports to be, a (b) CRIMINAL SANCTIONS.—Section 208(a) of sections (d) and (e) of section 205 of such Act card issued by the Commissioner of Social the Social Security Act (42 U.S.C. 408(a)) is (42 U.S.C. 405) shall apply to a civil penalty Security, or possesses such a card with in- amended— action under this subsection in the same tent to display, purchase, or sell it; (1) in paragraph (8), by inserting ‘‘or’’ after manner as such provisions apply to a penalty ‘‘(E) counterfeits a social security card, or the semicolon; and or proceeding under section 1128A(a) of such possesses a counterfeit social security card (2) by inserting after paragraph (8) the fol- Act (42 U.S.C. 1320a–7a(a)), except that, for with intent to display, sell, or purchase it; lowing: purposes of this paragraph, any reference in ‘‘(F) discloses, uses, compels the disclosure ‘‘(9) except as provided in subsections (e) section 1128A of such Act (42 U.S.C. 1320a–7a) of, or knowingly displays, sells, or purchases and (f) of section 1028A of title 18, United to the Secretary shall be deemed to be a ref- the social security account number of any States Code, knowingly and willfully dis- erence to the Attorney General. person in violation of the laws of the United plays, sells, or purchases (as those terms are SEC. 210. FEDERAL INJUNCTIVE AUTHORITY. States; defined in section 1028A(a) of title 18, United In addition to any other enforcement au- ‘‘(G) with intent to deceive the Commis- States Code) any individual’s social security thority conferred under this title or the sioner of Social Security as to such person’s account number without having met the pre- amendments made by this title, the Federal true identity (or the true identity of any requisites for consent under section 1028A(d) Government shall have injunctive authority other person) furnishes or causes to be fur- of title 18, United States Code; or with respect to any violation by a public en- nished false information to the Commis- ‘‘(10) obtains any individual’s social secu- tity of any provision of this title or of any sioner with respect to any information re- rity number for the purpose of locating or amendments made by this title. quired by the Commissioner in connection identifying the individual with the intent to TITLE III—LIMITATIONS ON SALE AND with the establishment and maintenance of injure or to harm that individual, or to use SHARING OF NONPUBLIC PERSONAL FI- the records provided for in section 205(c)(2); the identity of that individual for an illegal NANCIAL INFORMATION ‘‘(H) offers, for a fee, to acquire for any in- purpose;’’. SEC. 301. DEFINITION OF SALE. dividual, or to assist in acquiring for any in- SEC. 209. CIVIL ACTIONS AND CIVIL PENALTIES. Section 509 of the Gramm-Leach-Bliley Act dividual, an additional social security ac- (a) CIVIL ACTION IN STATE COURTS.— (15 U.S.C. 6809) is amended by adding at the count number or a number which purports to (1) IN GENERAL.—Any individual aggrieved end the following: be a social security account number; or by an act of any person in violation of this ‘‘(12) SALE.—The terms ‘sale’, ‘sell’, and ‘‘(I) being an officer or employee of a Fed- title or any amendments made by this title ‘sold’, with respect to nonpublic personal in- eral, State, or local agency in possession of may, if otherwise permitted by the laws or formation, mean the exchange of such infor- any individual’s social security account rules of the court of a State, bring in an ap- mation for any thing of value, directly or in- number, willfully acts or fails to act so as to propriate court of that State— directly, including the licensing, bartering, cause a violation by such agency of clause (A) an action to enjoin such violation; or renting of such information.’’. (vi)(II) or (x) of section 205(c)(2)(C), shall be (B) an action to recover for actual mone- SEC. 302. RULES APPLICABLE TO SALE OF NON- subject to, in addition to any other penalties tary loss from such a violation, or to receive PUBLIC PERSONAL INFORMATION. that may be prescribed by law, a civil money up to $500 in damages for each such viola- Section 502 of the Gramm-Leach-Bliley Act penalty of not more than $5,000 for each vio- tion, whichever is greater; or (15 U.S.C. 6802) is amended— lation. Such person shall also be subject to (C) both such actions. (1) in the section heading, by inserting an assessment, in lieu of damages sustained It shall be an affirmative defense in any ac- ‘‘SALES, AND OTHER SHARING’’ after ‘‘DISCLO- by the United States resulting from such tion brought under this paragraph that the SURES’’; violation, of not more than twice the defendant has established and implemented, (2) in subsection (a), by striking ‘‘disclose amount of any benefits or payments paid as with due care, reasonable practices and pro- to’’ and inserting ‘‘sell or otherwise disclose a result of such violation.’’. cedures to effectively prevent violations of to an affiliate or’’; (c) CLARIFICATION OF TREATMENT OF RECOV- the regulations prescribed under this title. If (3) in subsection (b)— ERED AMOUNTS.—Section 1129(e)(2)(B) of the the court finds that the defendant willfully (A) in the subsection heading, by inserting Social Security Act (42 U.S.C. 1320a– or knowingly violated the regulations pre- ‘‘FOR DISCLOSURES TO AFFILIATES’’ before the 8(e)(2)(B)) is amended by striking ‘‘In the scribed under this subsection, the court may, period; case of amounts recovered arising out of a in its discretion, increase the amount of the (B) by striking ‘‘a nonaffiliated third determination relating to title VIII or XVI,’’ award to an amount equal to not more than party’’ each place that term appears and in- and inserting ‘‘In the case of any other 3 times the amount available under subpara- serting ‘‘an affiliate’’; amounts recovered under this section,’’. graph (B). (C) by striking ‘‘such third party’’ each (d) CONFORMING AMENDMENTS.— (2) STATUTE OF LIMITATIONS.—An action place that term appears and inserting ‘‘such (1) Section 1129(b)(3)(A) of the Social Secu- may be commenced under this subsection affiliate’’; rity Act (42 U.S.C. 1320a–8(b)(3)(A)) is amend- not later than the earlier of— (D) by striking ‘‘may not disclose’’ and in- ed by striking ‘‘charging fraud or false state- (A) 5 years after the date on which the al- serting ‘‘may not sell or otherwise disclose’’; ments’’. leged violation occurred; or and

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CONFORMING AMENDMENTS. ing a Federal functional regulator, the Sec- ‘‘(A) has affirmatively consented to the Title V of the Gramm-Leach-Bliley Act (15 retary of the Treasury, with respect to sub- sale or disclosure of such information; and U.S.C. 6801 et seq.) is amended— ‘‘(B) has not withdrawn the consent. chapter II of chapter 53 of title 31, United States Code, and chapter 2 of title I of Public (1) in section 503(b)(1) (15 U.S.C. ‘‘(2) EXCEPTION.—This subsection shall not 6803(b)(1))— prevent a financial institution from pro- Law 91–508 (12 U.S.C. 1951–1959), a State in- surance authority, or the Federal Trade (A) by inserting ‘‘affiliates and’’ before viding nonpublic personal information to a ‘‘nonaffiliated’’; and nonaffiliated third party to perform services Commission), self-regulatory organizations, or for an investigation on a matter related (B) in subparagraph (A), by striking for or functions on behalf of the financial in- to public safety; ‘‘502(e)’’ and inserting ‘‘502(g)’’; and stitution, including marketing of the finan- ‘‘(2) the disclosure, other than the sale, of (2) in section 509(3)(D) (15 U.S.C. 6809(3)(D)), cial institution’s own products or services nonpublic personal information to identify by striking ‘‘502(e)(1)(C)’’ and inserting (subject to subsection (d) with respect to or locate missing and abducted children, wit- ‘‘502(g)(1)(A)(iii)’’. joint agreements between 2 or more financial nesses, criminals, and fugitives, parties to SEC. 305. REGULATORY AUTHORITY. institutions), if the financial institution lawsuits, parents, delinquents in child sup- Not later than 6 months after the date of fully discloses the provision of such informa- port payments, organ and bone marrow do- enactment of this Act, the agencies referred tion and enters into a contractual agreement nors, pension fund beneficiaries, and missing to in section 504(a)(1) of the Gramm-Leach- with the nonaffiliated third party that re- heirs; or Bliley Act (15 U.S.C. 6804(a)(1)) shall promul- quires that third party to maintain the con- ‘‘(3) the disclosure, other than the sale, of gate final regulations in accordance with fidentiality of such information. nonpublic personal information— that section 504 to carry out the amend- ‘‘(d) OPT OUT FOR JOINT AGREEMENTS.—A ‘‘(A) to protect the confidentiality or secu- ments made by this Act. financial institution may not sell or other- rity of the records of the financial institu- wise disclose nonpublic personal information SEC. 306. EFFECTIVE DATE. tion pertaining to the consumer, the service This title and the amendments made by to a nonaffiliated third party for the purpose or product, or the transaction therein; of offering financial products or services pur- this title shall take effect 6 months after the ‘‘(B) to protect against or prevent actual date of enactment of this Act. suant to a joint agreement between 2 or or potential fraud, unauthorized trans- more financial institutions, unless— actions, claims, or other liability; TITLE IV—LIMITATIONS ON THE PROVI- ‘‘(1) the financial institution clearly and ‘‘(C) for required institutional risk control, SION OF PROTECTED HEALTH INFOR- conspicuously discloses to the consumer to or for resolving customer disputes or inquir- MATION whom the information pertains, in writing or ies; SEC. 401. DEFINITIONS. in electronic form or other form permitted ‘‘(D) to persons holding a legal or bene- In this title: by the regulations prescribed under section ficial interest relating to the consumer; (1) BUSINESS ASSOCIATE.— 504, that such information may be disclosed ‘‘(E) to persons acting in a fiduciary or rep- (A) IN GENERAL.—Except as provided in to such nonaffiliated third party; resentative capacity on behalf of the con- subparagraph (B), the term ‘‘business asso- ‘‘(2) the consumer is given the opportunity, sumer; ciate’’ means, with respect to a covered enti- before the time that such information is ini- ‘‘(F) to provide information to insurance ty, a person who— tially disclosed, to direct that such informa- rate advisory organizations, guaranty funds (i) on behalf of such covered entity or of an tion not be disclosed to such nonaffiliated or agencies, applicable rating agencies of the organized health care arrangement in which third party; financial institution, persons assessing the the covered entity participates, but other ‘‘(3) the consumer is given an explanation compliance of the institution with industry than in the capacity of a member of the of how the consumer can exercise that non- standards, or the attorneys, accountants, or workforce of such covered entity or arrange- disclosure option; and auditors of the institution; ment, performs, or assists in the perform- ‘‘(4) the financial institution receiving the ‘‘(G) to a consumer reporting agency, in ance of— nonpublic personal information signs a writ- accordance with the Fair Credit Reporting (I) a function or activity involving the use ten agreement obliging it— Act or from a consumer report reported by a or disclosure of individually identifiable ‘‘(A) to maintain the confidentiality of the consumer reporting agency, as those terms health information, including claims proc- information; and are defined in that Act; essing or administration, data analysis, ‘‘(B) to refrain from using, selling, or oth- ‘‘(H) in connection with a proposed or ac- processing or administration, utilization re- erwise disclosing the information other than tual sale, merger, transfer, or exchange of all view, quality assurance, billing, benefit man- to carry out the joint offering or servicing of or a portion of a business or operating unit agement, practice management, and repric- the financial product or financial service if the disclosure of nonpublic personal infor- ing; or that is the subject of the written agree- mation concerns solely consumers of such (II) any other function or activity regu- ment.’’. business or unit; lated under subchapter C of title 45, Code of SEC. 303. EXCEPTIONS TO DISCLOSURE PROHIBI- ‘‘(I) to comply with Federal, State, or local Federal Regulations; or TION. laws, rules, or other applicable legal require- (ii) provides, other than in the capacity of (a) IN GENERAL.—Section 502 of the ments, or with a properly authorized civil, a member of the workforce of such covered Gramm-Leach-Bliley Act (15 U.S.C. 6802), as criminal, or regulatory investigation or sub- entity, legal, actuarial, accounting, con- amended by this title, is amended by adding poena or summons by Federal, State, or sulting, data aggregation (as defined in sec- at the end the following: local authorities; or tion 164.501 of title 45, Code of Federal Regu- ‘‘(g) GENERAL EXCEPTIONS.—Notwith- ‘‘(J) to respond to judicial process or gov- lations), management, administrative, ac- standing any other provision of this section, ernment regulatory authorities having juris- creditation, or financial services to or for this section does not prohibit— diction over the financial institution for ex- such covered entity, or to or for an organized

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00191 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S298 CONGRESSIONAL RECORD — SENATE January 24, 2005 health care arrangement in which the cov- nonstandard format or nonstandard data (viii) an employee welfare benefit plan or ered entity participates, where the provision content for the receiving entity. any other arrangement that is established or of the service involves the disclosure of indi- (8) HEALTH CARE PROVIDER.—The term maintained for the purpose of offering or vidually identifiable health information ‘‘health care provider’’ has the meaning providing health benefits to the employees of from such covered entity or arrangement, or given the terms ‘‘provider of services’’ and 2 or more employers; from another business associate of such cov- ‘‘provider of medical or health services’’ in (ix) the health care program for active ered entity or arrangement, to the person. subsections (u) and (s) of section 1861 of the military personnel under title 10, United (B) LIMITATIONS.— Social Security Act (42 U.S.C. 1395x), respec- States Code; (i) IN GENERAL.—A covered entity partici- tively, and includes any other person or or- (x) the veterans health care program under pating in an organized health care arrange- ganization who furnishes, bills, or is paid for chapter 17 of title 38, United States Code; ment that performs a function or activity as health care in the normal course of business. (xi) the Civilian Health and Medical Pro- described by subparagraph (A)(i) for or on be- (9) HEALTH INFORMATION.—The term gram of the Uniformed Services (CHAMPUS) half of such organized health care arrange- ‘‘health information’’ means any informa- (as defined in section 1072(4) of title 10, ment, or that provides a service as described tion, whether oral or recorded in any form or United States Code); in subparagraph (A)(ii) to or for such orga- medium, that— (xii) the Indian Health Service program nized health care arrangement, does not, (A) is created or received by a health care under the Indian Health Care Improvement simply through the performance of such provider, health plan, public health author- Act (25 U.S.C. 1601 et seq.); function or activity or the provision of such ity, employer, life insurer, school or univer- (xiii) the Federal Employees Health Bene- sity, or health care clearinghouse; and fits Program under chapter 89 of title 5, service, become a business associate of other (B) relates to the past, present, or future United States Code; covered entities participating in such orga- physical or mental health or condition of an (xiv) an approved State child health plan nized health care arrangement. individual; the provision of health care to an under title XXI of the Social Security Act (ii) LIMITATION.—A covered entity may be a individual; or the past, present, or future (42 U.S.C. 1397aa et seq.), providing benefits business associate of another covered entity. payment for the provision of health care to for child health assistance that meet the re- (2) COVERED ENTITY.—The term ‘‘covered an individual. quirements of section 2103 of such Act (42 entity’’ means— (10) HEALTH INSURANCE ISSUER.—The term U.S.C. 1397cc); (A) a health plan; ‘‘health insurance issuer’’ means a health in- (xv) the Medicare+Choice program under (B) a health care clearinghouse; and surance issuer (as defined in section part C of title XVIII of the Social Security (C) a health care provider who transmits 2791(b)(2) of the Public Health Service Act, 42 Act (42 U.S.C. 1395w–21 et seq.); any health information in electronic form in U.S.C. 300gg–91(b)(2)) and used in the defini- (xvi) a high risk pool that is a mechanism connection with a transaction covered by tion of health plan in this section and in- established under State law to provide parts 160 through 164 of title 45, Code of Fed- cludes an insurance company, insurance health insurance coverage or comparable eral Regulations. service, or insurance organization (including coverage to eligible individuals; and (3) DISCLOSURE.—The term ‘‘disclosure’’ an HMO) that is licensed to engage in the (xvii) any other individual or group plan, means the release, transfer, provision of ac- business of insurance in a State and is sub- or combination of individual or group plans, cess to, or divulging in any other manner of ject to State law that regulates insurance. that provides or pays for the cost of medical information outside the entity holding the Such term does not include a group health care (as defined in section 2791(a)(2) of the information. plan. Public Health Service Act (42 U.S.C. 300gg– (4) EMPLOYER.—The term ‘‘employer’’ has (11) HEALTH MAINTENANCE ORGANIZATION.— 91(a)(2)); and the meaning given that term in section The term ‘‘health maintenance organiza- (B) excluding— 3401(d) of the Internal Revenue Code of 1986. tion’’ (HMO) (as defined in section 2791(b)(3) (i) any policy, plan, or program to the ex- (5) GROUP HEALTH PLAN.—The term ‘‘group of the Public Health Service Act, 42 U.S.C. tent that it provides, or pays for the cost of, health plan’’ means an employee welfare 300gg–91 (b)(3)) and used in the definition of excepted benefits that are listed in section benefit plan (as defined in section 3(1) of the health plan in this section, means a federally 2791(c)(1) of the Public Health Service Act (42 Employee Retirement Income and Security qualified HMO, an organization recognized as U.S.C. 300gg–91(c)(1)); and Act of 1974 (29 U.S.C. 1002(1)), including in- an HMO under State law, or a similar organi- (ii) a government-funded program (other sured and self-insured plans, to the extent zation regulated for solvency under State than 1 listed in clause (i) through (xvi) of that the plan provides medical care (as de- law in the same manner and to the same ex- subparagraph (A)), whose principal purpose fined in section 2791(a)(2) of the Public tent as such an HMO. is other than providing, or paying the cost Health Service Act, 42 U.S.C. 300gg–91(a)(2)), (12) HEALTH OVERSIGHT AGENCY.—The term of, health care, or whose principal activity is including items and services paid for as med- ‘‘health oversight agency’’ means an agency the direct provision of health care to per- ical care, to employees or their dependents or authority of the United States, a State, a sons, or the making of grants to fund the di- directly or through insurance, reimburse- territory, a political subdivision of a State rect provision of health care to persons. ment, or otherwise, that— or territory, or an Indian tribe, or a person (14) INDIVIDUALLY IDENTIFIABLE HEALTH IN- (A) has 50 or more participants (as defined or entity acting under a grant of authority FORMATION.—The term ‘‘individually identifi- in section 3(7) of Employee Retirement In- from or contract with such public agency, in- able health information’’ means information come and Security Act of 1974, 29 U.S.C. cluding the employees or agents of such pub- that is a subset of health information, in- 1002(7)); or lic agency or its contractors or persons or cluding demographic information collected (B) is administered by an entity other than entities to whom it has granted authority, from an individual, that— the employer that established and maintains that is authorized by law to oversee the (A) is created or received by a covered enti- the plan. health care system (whether public or pri- ty or employer; and (6) HEALTH CARE.—The term ‘‘health care’’ vate) or government programs in which (B)(i) relates to the past, present, or future includes, but is not limited to, the following: health information is necessary to determine physical or mental health or condition of an (A) Preventive, diagnostic, therapeutic, re- eligibility or compliance, or to enforce civil individual, the provision of health care to an habilitative, maintenance, or palliative care rights laws for which health information is individual, or the past, present, or future and counseling, service, assessment, or pro- relevant. payment for the provision of health care to cedure with respect to the physical or men- (13) HEALTH PLAN.—The term ‘‘health plan’’ an individual; and tal condition, or functional status, of an in- means an individual or group plan that pro- (ii)(I) identifies an individual; or dividual or that affects the structure or vides, or pays the cost of, medical care, as (II) with respect to which there is a reason- function of the body. defined in section 2791(a)(2) of the Public able basis to believe that the information (B) The sale or dispensing of a drug, device, Health Service Act (42 U.S.C. 300gg– can be used to identify an individual. equipment, or other item in accordance with 91(a)(2))— (15) LAW ENFORCEMENT OFFICIAL.—The term a prescription. (A) including, singly or in combination— ‘‘law enforcement official’’ means an officer (7) HEALTH CARE CLEARINGHOUSE.—The (i) a group health plan; or employee of any agency or authority of term ‘‘health care clearinghouse’’ means a (ii) a health insurance issuer; the United States, a State, a territory, a po- public or private entity, including a billing (iii) an HMO; litical subdivision of a State or territory, or service, repricing company, community (iv) part A or B of the medicare program an Indian tribe, who is empowered by law health management information system or under title XVIII of the Social Security Act to— community health information system, and (42 U.S.C. 1395 et seq.); (A) investigate or conduct an official in- value-added networks and switches, that— (v) the medicaid program under title XIX quiry into a potential violation of law; or (A) processes or facilitates the processing of the Social Security Act (42 U.S.C. 1396 et (B) prosecute or otherwise conduct a crimi- of health information received from another seq.); nal, civil, or administrative proceeding aris- entity in a nonstandard format or containing (vi) an issuer of a medicare supplemental ing from an alleged violation of law. nonstandard data content into standard data policy (as defined in section 1882(g)(1) of the (16) LIFE INSURER.—The term ‘‘life insurer’’ elements or a standard transaction; or Social Security Act, 42 U.S.C. 1395ss(g)(1)); means a life insurance company (as defined (B) receives a standard transaction from (vii) an issuer of a long-term care policy, in section 816 of the Internal Revenue Code another entity and processes or facilitates excluding a nursing home fixed-indemnity of 1986), including the employees and agents the processing of health information into policy; of such company.

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(17) MARKETING.—The term ‘‘marketing’’ (ii) records described in subsection SEC. 403. AUTHORIZATION FOR SALE OR MAR- means to make a communication about a (a)(4)(B)(iv) of that Act; or KETING OF PROTECTED HEALTH IN- product or service that encourages recipients (iii) employment records held by a covered FORMATION BY NONCOVERED ENTI- of the communication to purchase or use the entity in its role as an employer. TIES. (a) VALID AUTHORIZATION.—A valid author- product or service. (21) PUBLIC HEALTH AUTHORITY.—The term ization is a document that complies with all (18) NONCOVERED ENTITY.—The term ‘‘non- ‘‘public health authority’’ means an agency requirements of this section. Such authoriza- covered entity’’ means any person or public or authority of the United States, a State, a tion may include additional information not or private entity that is not a covered enti- territory, a political subdivision of a State required under this section, provided that ty, including but not limited to a business or territory, or an Indian tribe, or a person such information is not inconsistent with associate of a covered entity, a covered enti- or entity acting under a grant of authority the requirements of this section. ty if such covered entity is acting as a busi- from or contract with such public agency, in- (b) DEFECTIVE AUTHORIZATION.—An author- ness associate, a health researcher, school or cluding employees or agents of such public ization is not valid, if the document sub- university, life insurer, employer, public agency or its contractors or persons or enti- mitted has any of the following defects: health authority, health oversight agency, ties to whom it has granted authority, that (1) The expiration date has passed or the or law enforcement official, or any person is responsible for public health matters as expiration event is known by the noncovered acting as an agent of such entities or per- part of its official mandate. entity to have occurred. sons. (22) SCHOOL OR UNIVERSITY.—The term (2) The authorization has not been filled (19) ORGANIZED HEALTH CARE ARRANGE- ‘‘school or university’’ means an institution out completely, with respect to an element MENT.—The term ‘‘organized health care ar- or place for instruction or education, includ- described in subsections (e) and (f). rangement’’ means— ing an elementary school, secondary school, (3) The authorization is known by the non- (A) a clinically integrated care setting in or institution of higher learning, a college, covered entity to have been revoked. which individuals typically receive health or an assemblage of colleges united under 1 (4) The authorization lacks an element re- care from more than 1 health care provider; corporate organization or government. quired by subsections (e) and (f). (B) an organized system of health care in (23) SECRETARY.—The term ‘‘Secretary’’ (5) Any material information in the au- which more than 1 covered entity partici- means the Secretary of Health and Human thorization is known by the noncovered enti- pates, and in which the participating covered Services. ty to be false. entities— (24) SALE; SELL; SOLD.—The terms ‘‘sale’’, (c) REVOCATION OF AUTHORIZATION.—An in- (i) hold themselves out to the public as ‘‘sell’’, and ‘‘sold’’, with respect to protected participating in a joint arrangement; and dividual may revoke an authorization pro- health information, mean the exchange of vided under this section at any time pro- (ii) participate in joint activities including such information for anything of value, di- at least— vided that the revocation is in writing, ex- rectly or indirectly, including the licensing, cept to the extent that the noncovered enti- (I) utilization review, in which health care bartering, or renting of such information. decisions by participating covered entities ty has taken action in reliance thereon. (25) USE.—The term ‘‘use’’ means, with re- (d) DOCUMENTATION.— are reviewed by other participating covered spect to individually identifiable health in- entities or by a third party on their behalf; (1) IN GENERAL.—A noncovered entity must formation, the sharing, employment, appli- document and retain any signed authoriza- (II) quality assessment and improvement cation, utilization, examination, or analysis activities, in which treatment provided by tion under this section as required under of such information within an entity that participating covered entities is assessed by paragraph (2). maintains such information. other participating covered entities or by a (2) STANDARD.—A noncovered entity shall, (26) WRITING.—The term ‘‘writing’’ means third party on their behalf; or if a communication is required by this title writing in either a paper-based or computer- (III) payment activities, if the financial to be in writing, maintain such writing, or based form, including electronic and digital risk for delivering health care is shared, in an electronic copy, as documentation. signatures. part or in whole, by participating covered (3) RETENTION PERIOD.—A noncovered enti- entities through the joint arrangement and SEC. 402. PROHIBITION AGAINST SELLING PRO- ty shall retain the documentation required TECTED HEALTH INFORMATION. if protected health information created or by this section for 6 years from the date of (a) VALID AUTHORIZATION REQUIRED.— received by a covered entity is reviewed by its creation or the date when it last was in (1) IN GENERAL.—A noncovered entity shall other participating covered entities or by a effect, whichever is later. not sell the protected health information of third party on their behalf for the purpose of (e) CONTENT OF AUTHORIZATION.— an individual or use such information for administering the sharing of financial risk; (1) CONTENT.—An authorization described marketing purposes without an authoriza- (C) a group health plan and a health insur- in subsection (a) shall— tion that is valid under section 403. When a ance issuer or HMO with respect to such (A) contain a description of the informa- noncovered entity obtains or receives au- group health plan, but only with respect to tion to be sold that identifies such informa- protected health information created or re- thorization to sell such information, such tion in a specific and meaningful manner; ceived by such health insurance issuer or sale must be consistent with such authoriza- (B) contain the name or other specific HMO that relates to individuals who are or tion. identification of the person, or class of per- who have been participants or beneficiaries (2) NO DUPLICATE AUTHORIZATION RE- sons, authorized to sell the information; in such group health plan; QUIRED.—Nothing in paragraph (1) shall be (C) contain the name or other specific (D) a group health plan and 1 or more other construed as requiring a noncovered entity identification of the person, or class of per- group health plans each of which are main- that receives from a covered entity an au- sons, to whom the information is to be sold; tained by the same plan sponsor; or thorization that is valid under section 403 to (D) include an expiration date or an expira- (E) the group health plans described in sub- obtain a separate authorization from an indi- tion event relating to the selling of such in- paragraph (D) and health insurance issuers vidual before the sale or use of the individ- formation that signifies that the authoriza- or HMOs with respect to such group health ual’s protected health information so long as tion is valid until such date or event; plans, but only with respect to protected the sale or use of the information is con- (E) include a statement that the individual health information created or received by sistent with the terms of the authorization. has a right to revoke the authorization in (b) SCOPE.—A sale of protected health in- such health insurance issuers or HMOs that writing and the exceptions to the right to re- formation as described under subsection (a) relates to individuals who are or have been voke, and a description of the procedure in- shall be limited to the minimum amount of participants or beneficiaries in any of such volved in such revocation; information necessary to accomplish the group health plans. (F) be in writing and include the signature purpose for which the sale is made. (20) PROTECTED HEALTH INFORMATION.— (c) PURPOSE.—A recipient of information of the individual and the date, or if the au- (A) IN GENERAL.—The term ‘‘protected sold pursuant to this title may use or dis- thorization is signed by a personal represent- health information’’ means individually close such information solely to carry out ative of the individual, a description of such identifiable health information that, except the purpose for which the information was representative’s authority to act for the in- as provided in subparagraph (B), is— sold. dividual; and (i) transmitted by electronic media; (d) NOT REQUIRED.—Nothing in this title (G) include a statement explaining the pur- (ii) maintained in any medium described in permitting the sale of protected health infor- pose for which such information is sold. the definition of electronic media in section mation shall be construed to require such (2) PLAIN LANGUAGE.—The authorization 162.103 of title 45, Code of Federal Regula- sale. shall be written in plain language. tions; or (e) IDENTIFICATION OF INFORMATION AS PRO- (f) NOTICE.— (iii) transmitted or maintained in any TECTED HEALTH INFORMATION.—Information (1) IN GENERAL.—The authorization shall other form or medium. sold pursuant to this title shall be clearly include a statement that the individual (B) EXCLUSIONS.—Such term does not in- identified as protected health information. may— clude individually identifiable health infor- (f) NO WAIVER.—Except as provided in this (A) inspect or copy the protected health in- mation in— title, an individual’s authorization to sell formation to be sold; and (i) education records covered by the Fam- protected health information shall not be (B) refuse to sign the authorization. ily Educational Rights and Privacy Act of construed as a waiver of any rights that the (2) COPY TO THE INDIVIDUAL.—A noncovered 1974 (section 444 of the General Education individual has under other Federal or State entity shall provide the individual with a Provisions Act (20 U.S.C. 1232g)); laws, the rules of evidence, or common law. copy of the signed authorization.

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(g) MODEL AUTHORIZATIONS.—The Sec- money penalty has been entered after an made by such a title, the State, as parens retary, after notice and opportunity for pub- agency hearing under this section may ob- patriae, may bring a civil action on behalf of lic comment, shall develop and disseminate tain review by the United States district the residents of the State in a district court model written authorizations of the type de- court for any district in which such entity is of the United States of appropriate jurisdic- scribed in this section and model statements located or the United States District Court tion to— of the limitations on such authorizations. for the District of Columbia by filing a no- (A) enjoin that practice; Any authorization obtained on a model au- tice of appeal in such court within 30 days (B) enforce compliance with such titles or thorization form developed by the Secretary from the date of such order, and simulta- such amendments; pursuant to the preceding sentence shall be neously sending a copy of such notice by reg- (C) obtain damage, restitution, or other deemed to satisfy the requirements of this istered mail to the Secretary. compensation on behalf of residents of the section. (2) CERTIFICATION OF ADMINISTRATIVE State; or (h) NONCOERCION.—A covered entity or non- RECORD.—The Secretary shall promptly cer- (D) obtain such other relief as the court covered entity shall not condition the pur- tify and file in such court the record upon may consider to be appropriate. chase of a product or the provision of a serv- which the penalty was imposed. (2) NOTICE.— ice to an individual based on whether such (3) STANDARD FOR REVIEW.—The findings of (A) IN GENERAL.—Before filing an action individual provides an authorization to such the Secretary shall be set aside only if found under paragraph (1), the attorney general of entity as described in this section. to be unsupported by substantial evidence as the State involved shall provide to the At- SEC. 404. PROHIBITION AGAINST RETALIATION. provided by section 706(2)(E) of title 5, torney General— A noncovered entity that collects pro- United States Code. (i) written notice of the action; and tected health information, may not ad- (4) APPEAL.—Any final decision, order, or (ii) a copy of the complaint for the action. versely affect another person, directly or in- judgment of the district court concerning (B) EXEMPTION.— directly, because such person has exercised a such review shall be subject to appeal as pro- (i) IN GENERAL.—Subparagraph (A) shall right under this title, disclosed information vided in chapter 83 of title 28 of such Code. not apply with respect to the filing of an ac- relating to a possible violation of this title, (e) FAILURE TO PAY ASSESSMENT; MAINTE- tion by an attorney general of a State under or associated with, or assisted, a person in NANCE OF ACTION.— this subsection, if the State attorney general the exercise of a right under this title. (1) FAILURE TO PAY ASSESSMENT.—If any en- determines that it is not feasible to provide SEC. 405. RULE OF CONSTRUCTION. tity fails to pay an assessment after it has the notice described in such subparagraph The requirements of this title shall not be become a final and unappealable order, or before the filing of the action. construed to impose any additional require- after the court has entered final judgment in (ii) NOTIFICATION.—In an action described ments or in any way alter the requirements favor of the Secretary, the Secretary shall in clause (i), the attorney general of a State imposed upon covered entities under parts refer the matter to the Attorney General shall provide notice and a copy of the com- 160 through 164 of title 45, Code of Federal who shall recover the amount assessed by ac- plaint to the Attorney General at the same Regulations. tion in the appropriate United States dis- time as the State attorney general files the trict court. SEC. 406. REGULATIONS. action. (2) NONREVIEWABILITY.—In such action the (b) INTERVENTION.— (a) IN GENERAL.—The Secretary shall pro- mulgate regulations implementing the provi- validity and appropriateness of the final (1) IN GENERAL.—On receiving notice under sions of this title. order imposing the penalty shall not be sub- subsection (a)(2), the Attorney General shall (b) TIMEFRAME.—Not later than 1 year ject to review. have the right to intervene in the action (f) PAYMENT OF PENALTIES.—Except as oth- after the date of enactment of this Act, the that is the subject of the notice. erwise provided, penalties collected under Secretary shall publish proposed regulations (2) EFFECT OF INTERVENTION.—If the Attor- this section shall be paid to the Secretary in the Federal Register. With regard to such ney General intervenes in an action under (or other officer) imposing the penalty and proposed regulations, the Secretary shall subsection (a), the Attorney General shall shall be available without appropriation and provide an opportunity for submission of have the right to be heard with respect to until expended for the purpose of enforcing comments by interested persons during a pe- any matter that arises in that action. the provisions with respect to which the pen- (c) CONSTRUCTION.—For purposes of bring- riod of not less than 90 days. Not later than alty was imposed. ing any civil action under subsection (a), 2 years after the date of enactment of this nothing in this Act shall be construed to pre- Act, the Secretary shall publish final regula- TITLE V—DRIVER’S LICENSE PRIVACY vent an attorney general of a State from ex- tions in the Federal Register. SEC. 501. DRIVER’S LICENSE PRIVACY. Section 2725 of title 18, United States Code, ercising the powers conferred on such attor- SEC. 407. ENFORCEMENT. ney general by the laws of that State to— (a) IN GENERAL.—A covered entity or non- is amended by striking paragraphs (2) through (4) and adding the following: (1) conduct investigations; covered entity that knowingly violates sec- (2) administer oaths or affirmations; or tion 402 shall be subject to a civil money ‘‘(2) ‘person’ means an individual, organiza- tion, or entity, but does not include a State (3) compel the attendance of witnesses or penalty under this section. the production of documentary and other (b) AMOUNT.—The civil money penalty de- or agency thereof; ‘‘(3) ‘personal information’ means informa- evidence. scribed in subsection (a) shall not exceed (d) ACTIONS BY THE ATTORNEY GENERAL OF tion that identifies an individual, including $100,000. In determining the amount of any THE UNITED STATES.—In any case in which an an individual’s photograph, social security penalty to be assessed, the Secretary shall action is instituted by or on behalf of the At- number, driver identification number, name, take into account the previous record of torney General for violation of a practice compliance of the entity being assessed with address (but not the 5-digit zip code), tele- that is prohibited under title I, II, IV, or V the applicable provisions of this title and the phone number, medical or disability infor- of this Act or under any amendment made by gravity of the violation. mation, any physical copy of a driver’s li- such a title, no State may, during the pend- (c) ADMINISTRATIVE REVIEW.— cense, birth date, information on physical ency of that action, institute an action (1) OPPORTUNITY FOR HEARING.—The entity characteristics, including height, weight, sex under subsection (a) against any defendant assessed shall be afforded an opportunity for or eye color, or any biometric identifiers on named in the complaint in that action for a hearing by the Secretary upon request a license, including a finger print, but not in- violation of that practice. made within 30 days after the date of the formation on vehicular accidents, driving (e) VENUE; SERVICE OF PROCESS.— issuance of a notice of assessment. In such violations, and driver’s status; (1) VENUE.—Any action brought under sub- hearing the decision shall be made on the ‘‘(4) ‘highly restricted personal informa- section (a) may be brought in the district record pursuant to section 554 of title 5, tion’ means an individual’s photograph or court of the United States that meets appli- United States Code. If no hearing is re- image, social security number, medical or cable requirements relating to venue under quested, the assessment shall constitute a disability information, any physical copy of section 1391 of title 28, United States Code. final and unappealable order. a driver’s license, driver identification num- (2) SERVICE OF PROCESS.—In an action (2) HEARING PROCEDURE.—If a hearing is re- ber, birth date, information on physical brought under subsection (a), process may be quested, the initial agency decision shall be characteristics, including height, weight, served in any district in which the defend- made by an administrative law judge, and sex, or eye color, or any biometric identifiers ant— such decision shall become the final order on a license, including a finger print; and’’. (A) is an inhabitant; or unless the Secretary modifies or vacates the TITLE VI—MISCELLANEOUS (B) may be found. decision. Notice of intent to modify or va- SEC. 601. ENFORCEMENT BY STATE ATTORNEYS SEC. 602. FEDERAL INJUNCTIVE AUTHORITY. cate the decision of the administrative law GENERAL. In addition to any other enforcement au- judge shall be issued to the parties within 30 (a) IN GENERAL.— thority conferred under this Act or under an days after the date of the decision of the (1) CIVIL ACTIONS.—In any case in which the amendment made by this Act, the Federal judge. A final order which takes effect under attorney general of a State has reason to be- Government shall have injunctive authority this paragraph shall be subject to review lieve that an interest of the residents of that with respect to any violation of any provi- only as provided under subsection (d). State has been or is threatened or adversely sion of title I, II, or IV of this Act or of any (d) JUDICIAL REVIEW.— affected by the engagement of any person in amendment made by such a title, without re- (1) FILING OF ACTION FOR REVIEW.—Any en- a practice that is prohibited under title I, II, gard to whether a public or private entity tity against whom an order imposing a civil or IV of this Act or under any amendment violates such provision.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00194 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S301 By Mrs. FEINSTEIN (for herself more money a year, and were more SECTION 1. LOAN FORGIVENESS FOR HEAD START TEACHERS. and Mr. VOINOVICH): likely to own a home and have a sav- (a) SHORT TITLE.—This section may be S. 117. A bill to amend the Higher ings account. cited as the ‘‘Loan Forgiveness for Head Education Act of 1965 to extend loan We can save millions by providing Start Teachers Act of 2005’’. forgiveness for certain loans to Head low-income children with access to (b) HEAD START TEACHERS.—Section 428J of Start teachers; to the Committee on quality preschool where they will gain the Higher Education Act of 1965 (20 U.S.C Health, Education, Labor, and Pen- the necessary skills to succeed in 1078–10) is amended— sions. school and life. (1) in subsection (b), by striking paragraph Mrs. FEINSTEIN. Mr. President. I In order to give every child a head (1) and inserting the following: ‘‘(1)(A) has been employed— rise today with Senator VOINOVICH to start in life, we must continue to re- ‘‘(i) as a full-time teacher for 5 consecutive introduce legislation to expand the fed- cruit highly qualified teachers to the Head Start field and prevent the best complete school years in a school that quali- eral loan forgiveness program to in- fies under section 465(a)(2)(A) for loan can- clude Head Start teachers. teachers from leaving. cellation for Perkins loan recipients who Nationwide, only 30 percent of Head Many Head Start programs across teach in such a school; or Start teachers have completed a bacca- the country, including in California, ‘‘(ii) as a Head Start teacher for 5 consecu- laureate or advanced degree program. are losing qualified teachers to local tive complete program years under the Head In California, that number is even school districts in part because the pay Start Act; and smaller: about eighteen percent of is better. ‘‘(B)(i) if employed as an elementary Head Start teachers have completed a Nationally, the average Head Start school or secondary school teacher, is highly qualified as defined in section 9101 of the Ele- bachelor’s degree. teacher earns a salary of $21,287 com- pared to $43,152 for an elementary mentary and Secondary Education Act of To prepare Head Start children for 1965; and elementary school, we must recruit school teacher. Head Start teachers are making half ‘‘(ii) if employed as a Head Start teacher, highly qualified teachers who have of what elementary school teachers are has demonstrated knowledge and teaching demonstrated knowledge and teaching skills in reading, writing, early childhood de- paid on average. skills in reading, writing, early child- velopment, and other areas of a preschool Low pay, combined with increasing curriculum, with a focus on cognitive learn- hood development, and other areas of student debt, is a real deterrent to get- the preschool curriculum with a par- ing; and’’; ting college graduates to become Head (2) in subsection (g), by adding at the end ticular focus on cognitive learning. Start teachers. the following: Recruiting and maintaining teachers And every teacher that Head Start ‘‘(3) HEAD START.—An individual shall be with such qualifications is the only loses impacts the quality and access to eligible for loan forgiveness under this sec- way to jump-start cognitive develop- services for our nation’s low-income tion for service described in clause (ii) of ment and ensure that our children children. subsection (b)(1)(A) only if such individual start elementary school ready to learn. One way to recruit and retain highly received a baccalaureate or graduate degree A survey conducted by the U.S. De- qualified Head Start teachers is to on or after the date of enactment of the partment of Health and Human Serv- offer incentives to pursue a career in Loan Forgiveness for Head Start Teachers ices called the Head Start Family and Act of 2005.’’; and this field. (3) by adding at the end the following: Child Experiences Survey (FACES) Current law allows elementary and ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— found a strong relationship between secondary school teachers to receive up There are authorized to be appropriated such the education of Head Start teachers to $5,000 in loan forgiveness in ex- sums as may be necessary for fiscal year 2009 and classroom quality. Teachers with change for five years of service. and succeeding fiscal years to carry out loan higher education levels were found to We believe Head Start teachers repayment under this section for service de- be more sensitive and responsive to should be given this same opportunity. scribed in clause (ii) of subsection (b)(1)(A).’’. (c) DIRECT STUDENT LOAN FORGIVENESS.— their children, to have more high qual- The legislation we are introducing (1) IN GENERAL.—Section 460 of the Higher ity language activities, and more cre- today is meant to encourage recent graduates, current Head Start teachers Education Act of 1965 (20 U.S.C 1087j) is ative activities in their classrooms. amended— without a degree, and college students Teachers with higher levels of edu- (A) in subsection (b)(1), by striking sub- to enter and remain in the Head Start cation also had classes with higher paragraph (A) and inserting the following: field. ‘‘(A)(i) has been employed— quality language activities such as In exchange for 5 years of service, a reading books for the children and pro- ‘‘(I) as a full-time teacher for 5 consecutive Head Start teacher could receive up to complete school years in a school that quali- vided more opportunities for children $5,000 of their federal loans forgiven. fies under section 465(a)(2)(A) for loan can- to develop skills in expressing We must continue to improve the cellation for Perkins loan recipients who thoughts. Head Start program so that children teach in such a school; or Head Start is the primary federal will have the necessary cognitive skills ‘‘(II) as a Head Start teacher for 5 consecu- program that has the potential to when they leave the program, such as tive complete program years under the Head Start Act; and reach out to low-income children early being able to count to ten, begin to re- in their formative years when their ‘‘(ii)(I) if employed as an elementary cite the alphabet, and recognize sizes school or secondary school teacher, is highly cognitive skills are just developing. and colors. We know that poor children dis- qualified as defined in section 9101 of the Ele- This is just the first step. To further mentary and Secondary Education Act of proportionately start school behind ensure cognitive learning, we must also 1965; and their peers—they are less likely to continue to raise the standards and pay ‘‘(II) if employed as a Head Start teacher, count to 10 or to recite the alphabet. for Head Start teachers. has demonstrated knowledge and teaching Many of our nation’s youngsters Providing our nation’s low-income skills in reading, writing, early childhood de- enter elementary school without the children with access to highly educated velopment, and other areas of a preschool basic skills necessary to succeed. Often and qualified teachers so that they curriculum, with a focus on cognitive learn- these children lag behind their peers enter school ready to learn is critical ing; and’’; throughout their academic career. (B) in subsection (g), by adding at the end to their future success and should be a the following As taxpayers, we will spend millions priority of this Congress. ‘‘(3) HEAD START.—An individual shall be on efforts to help these children catch I urge my colleagues to support this eligible for loan forgiveness under this sec- up. Many of these children will never legislation. I ask unanimous consent tion for service described in subclause (II) of catch up. A recent national study by that the text of the legislation be subsection (b)(l)(A)(i) only if such individual The High/Scope Perry Preschool con- printed in the RECORD. received a baccalaureate or graduate degree firms the importance of providing pre- There being no objection, the bill was on or after the date of enactment of the school children with the opportunity ordered to be printed in the RECORD, as Loan Forgiveness for Head Start Teachers early on to gain the basic skills nec- follows: Act of 2005.’’; and (C) by adding at the end the following: essary for school. S. 117 ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— The study found that preschoolers Be it enacted by the Senate and House of Rep- There are authorized to be appropriated such were more likely to graduate from high resentatives of the United States of America in sums as may be necessary for fiscal year 2009 school and be employed at age 40, earn Congress assembled, and succeeding fiscal years to carry out loan

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00195 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S302 CONGRESSIONAL RECORD — SENATE January 24, 2005 repayment under this section for service de- Human Services in 1999 and 2000 has cause I believe that her removal from scribed in subclause (II) of subsection shown a significant correlation be- the United States would be tragically (b)(1)(A)(i).’’. tween the quality of education a child unfair not only to her, but to her sister (d) CONFORMING AMENDMENTS.— receives and the amount of education (1) FFEL PROGRAM.—Section 428J of the and brother-in-law, Daniela Degrassi Higher Education Act of 1965 (20 U.S.C. 1078– that child’s teacher possesses. and Luca Prasso, who reside legally in 10) is amended— Unfortunately, nationwide, just 30 the United States and who are Ms. (A) in subsection (c)(1), by inserting ‘‘or percent of Head Start teachers have Degrassi’s closest family and only will- fifth complete program year’’ after ‘‘fifth earned a baccalaureate or advanced de- ing caregivers. complete school year of teaching’’; gree. Ms. Degrassi has legally resided in (B) in subsection (f), by striking ‘‘sub- Under Ohio law, by 2007, all Head the United States since 1997 on a non- section (b)’’ and inserting ‘‘subsection Start teachers must have at least an immigrant tourist visa. However, she is (b)(1)(A)(i)’’; associate’s degree. It is hoped that this not like an ordinary tourist. She can- (C) in subsection (g)(1)(A), by striking requirement will encourage Head Start ‘‘subsection (b)(1)(A)’’ and inserting ‘‘sub- not enjoy California’s beautiful coast- section (b)(1)(A)(i)’’; and educators to pursue a bachelor’s or line or stunning mountain ranges. She (D) in subsection (h), by inserting ‘‘except even an advanced degree. After all, the cannot tour Hollywood movie studios as part of the term ‘program year’,’’ before more education our teachers have, the or Napa Valley wineries. Ms. Degrassi ‘‘where’’. better off our children will be. was born premature in 1965 and, con- (2) DIRECT LOAN PROGRAM.—Section 460 of Unfortunately, as we all know, edu- sequently, is severely mentally handi- the Higher Education Act of 1965 (20 U.S.C. cation can be expensive. capped and autistic. Because of these 1087j) is amended— The bill we are introducing is de- disabilities, Ms. Degrassi has the men- (A) in subsection (c)(1), by inserting ‘‘or signed to encourage currently enrolled fifth complete program year’’ after ‘‘fifth tal capacity of a two-year old, cannot and incoming college students working speak and understands only a few sen- complete school year of teaching’’; on a bachelor’s or a master’s degree to (B) in subsection (f), by striking ‘‘sub- tences in Italian. section (b)’’ and inserting ‘‘subsection pursue a career as a Head Start teach- In addition to these challenges, Ms. (b)(1)(A)(i)(I)’’; er. It is also intended to assist current Degrassi was diagnosed with diabetes (C) in subsection (g)(1)(A), by striking Head Start teachers, who wish to pur- in 2001 and now requires daily insulin ‘‘subsection (b)(1)(A)’’ and inserting ‘‘sub- sue a degree, to remain in the field. shots and a carefully monitored diet. section (b)(1)(A)(i)(I)’’; and In exchange for a 5-year teaching For Ms. Degrassi, the sum of these (D) in subsection (h), by inserting ‘‘except commitment in a qualified Head Start health problems means that she must as part of the term ‘program year’,’’ before program, a college graduate with a ‘‘where’’. have 24-hour-a-day, 7-day-a-week per- minimum of a bachelor’s degree could sonal care and attention. Luckily, how- LOAN FORGIVENESS FOR HEAD START TEACHERS receive up to $5,000 in forgiveness for ever, there are two people in Ms. ACT OF 2005 their Federal student loan. Current law Degrassi’s life who are more than Mr. VOINOVICH. Mr. President, I am already permits elementary and sec- happy not only to care for her daily pleased to join my friend and colleague ondary educators to receive this type needs, but to love and nurture her. from California, Senator DIANNE FEIN- of loan forgiveness. It is time to give Ms. Degrassi’s sister, Daniela, and STEIN, in introducing very important Head Start teachers this same oppor- her brother-in-law, Luca, are legal per- legislation that I believe will encour- tunity. manent residents of the United States. age young teachers to go into early Recruiting and retaining Head Start Mr. Prasso is a highly skilled and val- childhood education, improve the and early childhood teachers continues ued employee of PDI-DreamWorks, the qualifications of current early edu- to be a challenge for Ohio and other world renowned movie production com- cators, and lead to a better education States. This is not surprising. On aver- for our Nation’s youngest children. pany. Serving as a Character Technical age, Head Start teachers earn about Supervisor and earning nearly $200,000 Study after study on human develop- half of the average salary of kinder- ment has found that there is no more per year, Mr. Prasso has worked on garten teachers. For Head Start pro- such critically acclaimed films as important time in a child’s life than viders, this financial difference com- their earliest years. In fact, the learn- ‘‘Shrek’’ and ‘‘ANTZ.’’ In the course of bined with the growing cost of a col- that work, Mr. Prasso has developed ing opportunities in these years have a lege education and student debt makes critical and decisive impact on the de- and patented new technologies and be- it difficult to recruit quality teachers. come a leader in his field. In a letter in velopment of the brain and on the na- This bill will help communities, support of this private legislation, ture and extent of their adult capac- schools and other funded Head Start DreamWorks referred to Mr. Prasso’s ities. providers to meet the challenge of re- To maximize their potential, we skills as ‘‘rar[e]’’ and ‘‘irreplaceable.’’ cruiting and retaining high quality Daniela Degrassi has also excelled in must begin to teach our children the teachers. It is one of the best ways that necessary learning skills they will uti- the United States, starting a successful I know of where we can make a real freelance photography career and busi- lize throughout their lives as early as difference in the lives of our most pre- possible; well before they reach kinder- ness. cious resource, our children. Together, Mr. Prasso and Daniela garten. One of the best uses of our Federal I know of few other programs that Degrassi have provided Ms. Degrassi education resources is to target them with the love, care and attention that have the same potential to meet this toward our youngest citizens where goal as Head Start. she so desperately needs. When Ms. they can have the most impact. Degrassi’s father and aunt died in 1997, When I was Governor of Ohio, we in- I am pleased to have been able to the couple knew that they were the vested heavily in Head Start, increas- work with my colleague Senator FEIN- only family left who was willing to ing funding from $18 million in 1990, to STEIN on this legislation, and I ask for care for her. The choice for them was $180 million in 1998. my colleagues’ support. By the time I left office, there was a clear. Mr. Prasso wrote in a letter he space available for every eligible child By Mrs. FEINSTEIN: sent me, ‘‘My wife and I then faced a in Ohio whose parents wanted them in S. 118. A bill for the relief of Maria big decision. We refuse[d] completely a Head Start or pre-school program, Cristina DeGrassi; to the Committee to put her in an institution. We [could and because of our efforts, Ohio led the on the Judiciary. not] accept the idea of not being able Nation in terms of children served by Mrs. FEINSTEIN. Mr. President, I to properly take care of her. No other Head Start. offer today private relief legislation to relative was alive or came forward to Now that I am in the Senate, I con- provide lawful permanent residence offer help. We were the only and closest tinue to believe that it is absolutely status to Maria Cristina Degrassi, a 37- persons to Cristina. We decided to take critical that we do more to help our year-old severely disabled Italian na- care of her like a daughter.’’ young people prepare to begin school tional currently living with her family For the past seven years, Mr. Prasso ‘‘ready to learn.’’ in San Mateo, California. and Daniela Degrassi have done just The results of a survey undertaken I have decided to offer private relief that, organizing their lives around car- by the U.S. Department of Health and legislation on Ms. Degrassi’s behalf be- ing for and attending to Ms. Degrassi.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00196 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S303 They cook for her and clothe and bathe family. For that reason, I offer this pri- consent, after garnering no less than 34 her on a daily basis. Because of the vate relief legislation and ask my col- co-sponsors. Unfortunately, the bill close monitoring Ms. Degrassi’s dia- leagues to support it. stalled in the House of Representa- betic condition requires, when the cou- Given these extraordinary and tives. ple wants to go out to dinner or see a unique facts, I ask my colleagues to So today I re-introduce this legisla- movie, they must do so separately so support this private relief bill on behalf tion, and again, this will be one of my that one of them is always with Ms. of Ms. Degrassi. top legislative priorities because I be- Degrassi in case of an emergency. I also ask unanimous consent that lieve we have a special obligation to Despite the hardships that caring for the text of the legislation be printed in ensure that every child that comes into Ms. Degrassi have imposed upon Mr. the RECORD. contact with federal officials is af- Prasso and Daniela Degrassi, the expe- There being no objection, the bill was forded fair and humane treatment. rience has deeply enriched their lives. ordered to be printed in the RECORD, as In 2004, approximately 6,200 unaccom- In Mr. Prasso’s letter, he wrote, ‘‘de- follows: panied alien children were apprehended spite my long work hours and my S. 118 by Department of Homeland Security wife[’s] new successful business as a Be it enacted by the Senate and House of Rep- officials and transferred to the care of photographer, we are able and fully resentatives of the United States of America in the Office of Refugee Resettlement committed to continue to take care [of Congress assembled, within the Department of Health and Cristina] 24 hours a day . . . The re- SECTION 1. ADJUSTMENT OF STATUS. Human Services. This number has ward of a kiss, hug or smile from (a) IN GENERAL.—Notwithstanding any grown over the years and shows no Cristina is an amazing thing and other provision of law or any order, for the signs of abating. makes all the pain disappear.’’ purposes of the Immigration and Nationality Thousands of foreign-born children Unfortunately, if this private relief Act (8 U.S.C. 1101 et seq.), Maria Cristina under the age of 18 enter the United bill is not approved, this wonderful DeGrassi shall be deemed to have been law- States each year unaccompanied by fully admitted to, and remained in, the family will face a tragic set of choices. parents or other legal guardians. These Since 1997, Ms. Degrassi has applied for United States, and shall be eligible for issuance of an immigrant visa or for adjust- children are among the most vulner- and always received six-month exten- ment of status under section 245 of the Immi- able of the immigrant population and sions of her non-immigrant tourist gration and Nationality Act (8 U.S.C. 1255). these numbers are going to continue to visa. The Degrassi’s lawyer has in- (b) APPLICATION AND PAYMENT OF FEES.— grow given the greater emphasis on en- formed the couple that approval of the Subsection (a) shall apply only if the appli- forcement actions by immigration offi- current extension is unlikely and has cation for issuance of an immigrant visa or cials—which I support—and the rel- recommended they withdraw their pe- the application for adjustment of status is atively unchanged conditions bringing tition. This would leave Ms. Degrassi filed with appropriate fees within 2 years after the date of enactment of this Act. them here. with nothing. There are no other ave- These children are from all over the nues available for her to remain in the (c) REDUCTION OF IMMIGRANT VISA NUM- BERS.—Upon the granting of an immigrant world, although the majority encoun- United States lawfully. In short, if this visa to Maria Cristina DeGrassi, the Sec- tered by immigration officials today private relief legislation is not ap- retary of State shall instruct the proper offi- are from Honduras, Guatemala and El proved, Ms. Degrassi will be forced to cer to reduce by 1, during the current or sub- Salvador. Some are asylum seekers return to Italy. sequent fiscal year, the total number of im- fleeing human rights abuses and armed However, Mr. Prasso and Daniela migrant visas that are made available to na- conflict in their homelands. Others are Degrassi’s love for their sister will tives of the country of the alien’s birth under section 202(e) or 203(a) of the Immigra- fleeing abuses specific to children, such never allow her to return to Italy as forced recruitment of child soldiers, alone. Faced with Ms. Degrassi’s re- tion and Nationality Act (8 U.S.C. 1152(e), forced prostitution and servitude, sex- moval, the couple will leave their lives 1153(a)), as applicable. ual slavery and exploitation, child in California and move back with her By Mrs. FEINSTEIN (for herself, labor, abuse of street children, child in order to continue to provide the care Ms. COLLINS, Mr. SCHUMER, Mr. brides and female genital mutilation. and attention on which Ms. Degrassi HAGEL, Mr. DURBIN, Mr. Yet other children come to the United depends. DEWINE, Ms. CANTWELL, Mr. The consequences of such a move will States because they have been abused, INOUYE, and Mr. FEINGOLD): be tragic for this family. It will mean abandoned or neglected by their par- S. 119. A bill to provide for the pro- the end of Mr. Prasso’s highly accom- ents or caregivers. And finally, some tection of unaccompanied alien chil- plished career with DreamWorks, as come seeking to reunify with family dren, and for other purposes; to the well as, the end of the photography ca- members already in the United States reer Daniela Degrassi has worked so Committee on the Judiciary. or seeking a better life. Mrs. FEINSTEIN. Mr. President, I in- hard to build. In addition, both Mr. Historically, U.S. immigration law Prasso and Daniela Degrassi are eligi- troduce today the ‘‘Unaccompanied and policies have been developed and ble to become United States citizens Alien Child Protection Act of 2005’’, implemented without regard to their this year. legislation to reform the way the fed- effect on children. This result has been I can think of no compelling reasons eral government treats unaccompanied similar to trying to fit a square peg in why the United States should not en- alien children who are apprehended by a round hole—it just doesn’t work. able this family to continue as they federal immigration officials at our Under current immigration law, have in California. Because of the sub- borders or within the United States. these children are forced to struggle stantial salary that Mr. Prasso and I first introduced legislation similar through a system designed for adults, Daniela Degrassi earn and because of to this bill during the 107th Congress even though they lack the capacity to the monthly pension Ms. Degrassi re- and still strongly believe that its pas- understand nuanced legal principles or ceives, due to her disability, from the sage is necessary to ensure the proper courtroom and administrative proce- Italian government, there is almost no treatment of unaccompanied alien chil- dures. Because of this, children who chance that Ms. Degrassi will become a dren within our federal system. With may very well be eligible for relief are burden on the state or federal govern- each passing year, as members realize often vulnerable to being deported ment. the necessity for this legislation, the back to the very life-threatening situa- In Mr. Prasso’s letter to me, he made bill has moved further along in the tions from which they fled—before they this simple request, ‘‘We are looking process. are even able to make their cases be- forward to find[ing] a permanent solu- I am pleased to be joined by Senators fore the Department of Homeland Se- tion to this dilemma that does not in- COLLINS, SCHUMER, HAGEL, DURBIN, curity or an immigration judge. volve dismembering this family or giv- DEWINE, CANTWELL, INOUYE and FEIN- Prior to March 1, 2003, the Immigra- ing up on a wonderful job. A solution GOLD as original co-sponsors of this leg- tion and Naturalization Service had re- that will allow us to live a normal life islation. sponsibility for the care, custody and like a normal family.’’ During the 108th Congress, the ‘‘Un- treatment of unaccompanied alien chil- We can make this solution a reality accompanied Alien Child Protection dren. Unfortunately, the Immigration for Ms. Degrassi and this wonderful Act’’ passed the Senate by unanimous and Naturalization Service fell short in

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00197 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S304 CONGRESSIONAL RECORD — SENATE January 24, 2005 fulfilling these responsibilities. The federal government officials and pri- system he or she does not understand, legislation that I am introducing today vate parties who come into contact provided no access to pro bono counsel builds on Section 462 of Public Law 107– with unaccompanied alien children; or guardians ad litem, placed in jail 296, the Homeland Security Act of 2002, Fourth, it requires the issuance of with adults or housed with juveniles which provided for the transfer of re- guidelines specific to children’s asylum with serious criminal convictions. I sponsibility for the care and placement claims; find it hard to believe that our country of unaccompanied alien children from Fifth, it authorizes appropriations would allow children to be treated in the now-abolished Immigration and for the care of unaccompanied alien such a manner. Naturalization Service to the Office of children; and That is why I am introducing this Refugee Resettlement within the De- Sixth, it amends the Homeland Secu- legislation today. The ‘‘Unaccom- partment of Health and Human Serv- rity Act of 2002 to provide additional panied Alien Child Protection Act’’ ices. responsibilities and powers to the Of- will help our country fulfill the special Section 462 was based on S. 121, com- fice of Refugee Resettlement with re- obligation to these children to treat prehensive legislation relating to unac- spect to unaccompanied alien children. them fairly and humanely. companied alien children that I intro- Central throughout the ‘‘Unaccom- I am proud to have the support of the duced during the 107th Congress. panied Alien Child Protection Act’’ are United States Conference of Catholic With the enactment of the Homeland two concepts: Bishops, the Women’s Commission on Security Act of 2002, we set into mo- The United States government has a Refugee Women and Children, the Lu- tion the centralization of responsi- fundamental responsibility to protect theran Immigration and Refugee Serv- bility for the care and custody of unac- unaccompanied children in its custody; ice, Amnesty International USA and companied alien children with the Of- and in all proceedings and actions, the the United Nations High Commissioner fice of Refugee Resettlement. The first government should have as a priority for Refugees, and many other organiza- phase of this transfer of responsibility protecting the interests of these chil- tions with whom I have worked closely occurred on March 1, 2003. Once the dren. to develop this legislation. transition was completed, we finally I first became involved in this issue I urge my colleagues to join with me resolved the conflict of interest inher- in 2000 when I heard about a young 15- by cosponsoring this important meas- ent in the former system which pitted year old Chinese girl who stood before ure and ensuring that these reforms the enforcement side of the Immigra- a U.S. immigration court facing depor- are finally enacted. tion and Naturalization Service tation proceedings with her hands I ask unanimous consent that the against the benefits side of that same chained to her waist, like a criminal. text of the legislation be printed in the agency in the care of unaccompanied She had found her way to the United RECORD. alien children. States as a stowaway in a container There being no objection, the bill was I am pleased that the provision ship captured off of Guam, hoping to ordered to be printed in the RECORD, as transferring responsibility for the care escape the repression she had experi- follows: and custody of unaccompanied alien enced in her home country. S. 119 children was contained in the Home- She had been placed on a boat bound Be it enacted by the Senate and House of Rep- land Security Act and that by all ac- for the United States by her very own resentatives of the United States of America in counts the transition in the care of parents, fleeing China’s rigid family Congress assembled, children between the affected agencies planning laws. Under these laws, she SECTION 1. SHORT TITLE; TABLE OF CONTENTS. has gone well. was denied citizenship, education and (a) SHORT TITLE.—This Act may be cited as But, the transfer of authority to the medical care. She came to this country the ‘‘Unaccompanied Alien Child Protection Office of Refugee Resettlement—by alone and desperate. Act of 2005’’. itself—is not enough to ensure that And what did our immigration au- (b) TABLE OF CONTENTS.—The table of con- tents for this Act is as follows: these children are treated fairly and thorities do when they found her? The Immigration and Naturalization Serv- Sec. 1. Short title; table of contents humanely. Congress now has a respon- Sec. 2. Definitions sibility to go beyond the simple trans- ice detained her in a juvenile jail in Portland, Oregon for eight months be- TITLE I—CUSTODY, RELEASE, FAMILY fer to actually laying out the process REUNIFICATION, AND DETENTION and steps to ensure that unaccom- fore her asylum hearing, and more Sec. 101. Procedures when encountering un- panied alien children are treated fairly than seven weeks after she was granted accompanied alien children and humanely. We must provide the Of- asylum. Sec. 102. Family reunification for unaccom- fice of Refugee Resettlement, the De- At her asylum hearing, the young panied alien children with rel- partment of Homeland Security and girl stood before a judge, unrepresented atives in the United States the Department of Justice with the by counsel, confused and unable to un- Sec. 103. Appropriate conditions for deten- tools they will need to succeed in their derstand the proceedings against her. tion of unaccompanied alien missions regarding the care of unac- She could not wipe away the tears from children her face because her hands were Sec. 104. Repatriated unaccompanied alien companied alien children after the children transfer of jurisdiction took place. chained to her waist. According to a Sec. 105. Establishing the age of an unac- First of all, I want to stress that this lawyer who later came to represent companied alien child bill is not about benefits, as it provides her, ‘‘her only crime was that her par- Sec. 106. Effective date no new immigration benefit to unac- ents had put her on a boat so she could TITLE II—ACCESS BY UNACCOMPANIED companied alien children. Rather, this get a better life over here.’’ ALIEN CHILDREN TO GUARDIANS AD bill is about the process of how we While the young girl eventually re- LITEM AND COUNSEL treat these children. ceived asylum in our country, she un- Sec. 201. Guardians ad litem The ‘‘Unaccompanied Alien Child necessarily faced an ordeal no child Sec. 202. Counsel Protection Act’’ provides guidance and should bear under our immigration sys- Sec. 203. Effective date; applicability instruction to the Office of Refugee Re- tem. This young Chinese girl rep- TITLE III—STRENGTHENING POLICIES settlement, the Department of Home- resents only one of the more than 6,000 FOR PERMANENT PROTECTION OF land Security and the Department of foreign-born children who, without par- ALIEN CHILDREN Justice in the following areas: ents or legal guardians to protect Sec. 301. Special immigrant juvenile visa First, in the custody, release, family them, are discovered in the United Sec. 302. Training for officials and certain private parties who come into reunification and detention of unac- States each year in need of protection. contact with unaccompanied companied alien children; This is unacceptable treatment and alien children Second, it provides access by unac- we have a responsibility to do better Sec. 303. Report companied alien children to guardians than this. Sec. 304. Effective date ad litem and pro bono counsel; Imagine the fear of an unaccom- TITLE IV—CHILDREN REFUGEE AND Third, it streamlines the Special Im- panied alien child, in the United States ASYLUM SEEKERS migrant Juvenile (SIJ) program and alone, without a parent or guardian. Sec. 401. Guidelines for children’s asylum provides guidance on the training of Imagine that child being thrust into a claims

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00198 Fmt 0637 Sfmt 0655 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S305 Sec. 402. Unaccompanied refugee children loco parentis, shall not be considered a legal (i) has been charged with any felony, ex- Sec. 403. Exceptions for unaccompanied alien guardian for purposes of section 462 of the cluding offenses proscribed by the Immigra- children in asylum and refugee- Homeland Security Act of 2002 (6 U.S.C. 279) tion and Nationality Act (8 U.S.C. 1101 et like circumstances or this Act. seq.), while such charges are pending; or TITLE V—AUTHORIZATION OF TITLE I—CUSTODY, RELEASE, FAMILY (ii) has been convicted of any such felony. APPROPRIATIONS REUNIFICATION, AND DETENTION (C) EXCEPTION FOR CHILDREN WHO THREATEN NATIONAL SECURITY.—Notwithstanding sub- Sec. 501. Authorization of appropriations SEC. 101. PROCEDURES WHEN ENCOUNTERING UNACCOMPANIED ALIEN CHILDREN. paragraph (A), the Directorate shall retain TITLE VI—AMENDMENTS TO THE or assume the custody and care of an unac- (a) UNACCOMPANIED CHILDREN FOUND ALONG HOMELAND SECURITY ACT OF 2002 companied alien child if the Secretary has THE UNITED STATES BORDER OR AT UNITED substantial evidence, based on an individual- Sec. 601. Additional responsibilities and pow- STATES PORTS OF ENTRY.— ized determination, that such child could ers of the Office of Refugee Re- (1) IN GENERAL.—Subject to paragraph (2), personally endanger the national security of settlement with respect to un- if an immigration officer finds an unaccom- the United States. accompanied alien children panied alien child who is described in para- (D) TRAFFICKING VICTIMS.—For purposes of Sec. 602. Technical corrections graph (2) at a land border or port of entry of section 462 of the Homeland Security Act of Sec. 603. Effective date the United States and determines that such 2002 (6 U.S.C. 279) and this Act, an unaccom- SEC. 2. DEFINITIONS. child is inadmissible under the Immigration panied alien child who is eligible for services (a) IN GENERAL.—In this Act: and Nationality Act (8 U.S.C. 1101 et seq.), authorized under the Victims of Trafficking (1) COMPETENT.—The term ‘‘competent’’, in the officer shall— and Violence Protection Act of 2000 (Public reference to counsel, means an attorney (A) permit such child to withdraw the Law 106–386), shall be considered to be in the who— child’s application for admission pursuant to custody of the Office. (A) complies with the duties set forth in section 235(a)(4) of the Immigration and Na- (2) NOTIFICATION.— this Act; tionality Act (8 U.S.C. 1225(a)(4)); and (A) IN GENERAL.—The Secretary shall (B) is a member in good standing of the bar (B) return such child to the child’s country promptly notify the Office upon— of the highest court of any State, possession, of nationality or country of last habitual (i) the apprehension of an unaccompanied territory, Commonwealth, or the District of residence. alien child; Columbia; (2) SPECIAL RULE FOR CONTIGUOUS COUN- (ii) the discovery that an alien in the cus- (C) is not under any order of any court sus- TRIES.— tody of the Directorate is an unaccompanied pending, enjoining, restraining, disbarring, (A) IN GENERAL.—Any child who is a na- alien child; or otherwise restricting the attorney in the tional or habitual resident of a country that (iii) any claim by an alien in the custody of practice of law; and is contiguous with the United States and the Directorate that such alien is under the (D) is properly qualified to handle matters that has an agreement in writing with the age of 18; or involving unaccompanied immigrant chil- United States providing for the safe return (iv) any suspicion that an alien in the cus- dren or is working under the auspices of a and orderly repatriation of unaccompanied tody of the Directorate who has claimed to qualified nonprofit organization that is expe- alien children who are nationals or habitual be over the age of 18 is actually under the rienced in handling such matters. residents of such country shall be treated in age of 18. (2) DIRECTOR.—The term ‘‘Director’’ means accordance with paragraph (1), if a deter- (B) SPECIAL RULE.—In the case of an alien the Director of the Office. mination is made on a case-by-case basis described in clause (iii) or (iv) of subpara- (3) DIRECTORATE.—The term ‘‘Directorate’’ that— graph (A), the Director shall make an age de- means the Directorate of Border and Trans- (i) such child is a national or habitual resi- termination in accordance with section 105 portation Security established by section 401 dent of a country described in this subpara- and take whatever other steps are necessary of the Homeland Security Act of 2002 (6 graph; to determine whether such alien is eligible U.S.C. 201). (ii) such child does not have a fear of re- for treatment under section 462 of the Home- (4) OFFICE.—The term ‘‘Office’’ means the turning to the child’s country of nationality land Security Act of 2002 (6 U.S.C. 279) or this Office of Refugee Resettlement established or country of last habitual residence owing Act. by section 411 of the Immigration and Na- to a fear of persecution; (3) TRANSFER OF UNACCOMPANIED ALIEN tionality Act (8 U.S.C. 1521). (iii) the return of such child to the child’s CHILDREN.— (5) SECRETARY.—The term ‘‘Secretary’’ country of nationality or country of last ha- (A) TRANSFER TO THE OFFICE.—The care and means the Secretary of Homeland Security. bitual residence would not endanger the life custody of an unaccompanied alien child (6) UNACCOMPANIED ALIEN CHILD.—The term or safety of such child; and shall be transferred to the Office— ‘‘unaccompanied alien child’’ has the mean- (iv) the child is able to make an inde- (i) in the case of a child not described in ing given the term in section 462(g)(2) of the pendent decision to withdraw the child’s ap- subparagraph (B) or (C) of paragraph (1), not Homeland Security Act of 2002 (6 U.S.C. plication for admission due to age or other later than 72 hours after a determination is 279(g)(2)). lack of capacity. made that such child is an unaccompanied (7) VOLUNTARY AGENCY.—The term ‘‘vol- (B) RIGHT OF CONSULTATION.—Any child de- alien child; untary agency’’ means a private, nonprofit scribed in subparagraph (A) shall have the (ii) in the case of a child whose custody voluntary agency with expertise in meeting right, and shall be informed of that right in and care has been retained or assumed by the the cultural, developmental, or psycho- the child’s native language— Directorate pursuant to subparagraph (B) or logical needs of unaccompanied alien chil- (i) to consult with a consular officer from (C) of paragraph (1), immediately following a dren, as certified by the Director. the child’s country of nationality or country determination that the child no longer meets (b) AMENDMENTS TO THE IMMIGRATION AND of last habitual residence prior to repatri- the description set forth in such subpara- NATIONALITY ACT.—Section 101(a) of the Im- ation; and graphs; or migration and Nationality Act (8 U.S.C. (ii) to consult, telephonically, with the Of- (iii) in the case of a child who was pre- 1101(a)) is amended by adding at the end the fice. viously released to an individual or entity following: (3) RULE FOR APPREHENSIONS AT THE BOR- described in section 102(a)(1), upon a deter- ‘‘(51) The term ‘unaccompanied alien child’ DER.—The custody of unaccompanied alien mination by the Director that such indi- means a child who— children not described in paragraph (2) who vidual or entity is no longer able to care for ‘‘(A) has no lawful immigration status in are apprehended at the border of the United the child. the United States; States or at a United States port of entry (B) TRANSFER TO THE DIRECTORATE.—Upon ‘‘(B) has not attained the age of 18; and shall be treated in accordance with sub- determining that a child in the custody of ‘‘(C) with respect to whom— section (b). the Office is described in subparagraph (B) or ‘‘(i) there is no parent or legal guardian in (b) CARE AND CUSTODY OF UNACCOMPANIED (C) of paragraph (1), the Director shall trans- the United States; or ALIEN CHILDREN FOUND IN THE INTERIOR OF fer the care and custody of such child to the ‘‘(ii) no parent or legal guardian in the THE UNITED STATES.— Directorate. United States is able to provide care and (1) ESTABLISHMENT OF JURISDICTION.— (C) PROMPTNESS OF TRANSFER.—In the physical custody. (A) IN GENERAL.—Except as otherwise pro- event of a need to transfer a child under this ‘‘(52) The term ‘unaccompanied refugee vided under subparagraphs (B) and (C) and paragraph, the sending office shall make children’ means persons described in para- subsection (a), the care and custody of all prompt arrangements to transfer such child graph (42) who— unaccompanied alien children, including re- and the receiving office shall make prompt ‘‘(A) have not attained the age of 18; and sponsibility for their detention, where appro- arrangements to receive such child. ‘‘(B) with respect to whom there are no priate, shall be under the jurisdiction of the (c) AGE DETERMINATIONS.—In any case in parents or legal guardians available to pro- Office. which the age of an alien is in question and vide care and physical custody.’’. (B) EXCEPTION FOR CHILDREN WHO HAVE COM- the resolution of questions about the age of (c) RULE OF CONSTRUCTION.—A department MITTED CRIMES.—Notwithstanding subpara- such alien would affect the alien’s eligibility or agency of a State, or an individual or en- graph (A), the Directorate shall retain or as- for treatment under section 462 of the Home- tity appointed by a State court or juvenile sume the custody and care of any unaccom- land Security Act of 2002 (6 U.S.C. 279) or this court located in the United States, acting in panied alien child who— Act, a determination of whether or not such

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(iv) access to telephones; (1) ORDER OF PREFERENCE.—Subject to the (C) DISCIPLINARY ACTION.—Any officer or (v) access to legal services; discretion of the Director under paragraph employee of the Office or the Department of (vi) access to interpreters; (4), section 103(a)(2), and section 462(b)(2) of Homeland Security, and any grantee or con- (vii) supervision by professionals trained in the Homeland Security Act of 2002 (6 U.S.C. tractor of the Office, who suspects an attor- the care of children, taking into account the 279(b)(2)), an unaccompanied alien child in ney of involvement in any activity described special cultural, linguistic, and experiential the custody of the Office shall be promptly in subparagraph (A) shall report the indi- needs of children in immigration pro- placed with 1 of the following individuals or vidual to the State bar association of which ceedings; entities in the following order of preference: the attorney is a member, or to other appro- (viii) recreational programs and activities; (A) A parent who seeks to establish cus- priate disciplinary authorities, for appro- (ix) spiritual and religious needs; and tody, as described in paragraph (3)(A). priate disciplinary action, which may in- (x) dietary needs. (B) A legal guardian who seeks to establish clude private or public admonition or cen- (B) NOTIFICATION OF CHILDREN.—Regula- custody, as described in paragraph (3)(A). sure, suspension, or disbarment of the attor- tions promulgated under subparagraph (A) (C) An adult relative. ney from the practice of law. shall provide that all children are notified of (D) An individual or entity designated by (5) GRANTS AND CONTRACTS.—The Director such standards orally and in writing in the the parent or legal guardian that is capable may award grants to, and enter into con- child’s native language. and willing to care for the well-being of the tracts with, voluntary agencies to carry out child. (b) PROHIBITION OF CERTAIN PRACTICES.— this section or section 462 of the Homeland (E) A State-licensed juvenile shelter, group The Director and the Secretary shall develop Security Act of 2002 (6 U.S.C. 279). home, or foster care program willing to ac- procedures prohibiting the unreasonable use (6) REIMBURSEMENT OF STATE EXPENSES.— cept physical custody of the child. of— The Director may reimburse States for any (F) A qualified adult or entity seeking cus- (1) shackling, handcuffing, or other re- expenses they incur in providing assistance tody of the child when it appears that there straints on children; to unaccompanied alien children who are is no other likely alternative to long-term (2) solitary confinement; or detention and family reunification does not served pursuant to this Act or section 462 of (3) pat or strip searches. the Homeland Security Act of 2002 (6 U.S.C. appear to be a reasonable alternative. For (c) RULE OF CONSTRUCTION.—Nothing in 279). purposes of this subparagraph, the Office this section shall be construed to supersede (b) CONFIDENTIALITY.—All information ob- shall decide who is a qualified adult or entity tained by the Office relating to the immigra- procedures favoring release of children to ap- and promulgate regulations in accordance tion status of a person described in subpara- propriate adults or entities or placement in with such decision. graphs (A), (B), and (C) of subsection (a)(1) the least secure setting possible, as defined (2) SUITABILITY ASSESSMENT.—Notwith- shall remain confidential and may be used in the Stipulated Settlement Agreement standing paragraph (1), no unaccompanied only for the purposes of determining such under Flores v. Reno. alien child shall be placed with a person or person’s qualifications under subsection entity unless a valid suitability assessment SEC. 104. REPATRIATED UNACCOMPANIED ALIEN (a)(1). CHILDREN. conducted by an agency of the State of the (c) REQUIRED DISCLOSURE.—The Secretary (a) COUNTRY CONDITIONS.— child’s proposed residence, by an agency au- of Health and Human Services or the Sec- thorized by that State to conduct such an as- (1) SENSE OF CONGRESS.—It is the sense of retary of Homeland Security shall provide Congress that, to the extent consistent with sessment, or by an appropriate voluntary the information furnished under this section, agency contracted with the Office to conduct the treaties and other international agree- and any other information derived from such ments to which the United States is a party, such assessments, has found that the person furnished information, to— and to the extent practicable, the United or entity is capable of providing for the (1) a duly recognized law enforcement enti- States Government should undertake efforts child’s physical and mental well-being. ty in connection with an investigation or to ensure that it does not repatriate children (3) RIGHT OF PARENT OR LEGAL GUARDIAN TO prosecution of an offense described in para- in its custody into settings that would CUSTODY OF UNACCOMPANIED ALIEN CHILD.— graph (2) or (3) of section 212(a) of the Immi- threaten the life and safety of such children. (A) PLACEMENT WITH PARENT OR LEGAL gration and Nationality Act (8 U.S.C. (2) ASSESSMENT OF CONDITIONS.— GUARDIAN.—If an unaccompanied alien child 1182(a)), when such information is requested is placed with any person or entity other (A) IN GENERAL.—The annual Country Re- in writing by such entity; or ports on Human Rights Practices published than a parent or legal guardian, and subse- (2) an official coroner for purposes of af- quent to that placement a parent or legal by the Department of State shall contain an firmatively identifying a deceased individual assessment of the degree to which each coun- guardian seeks to establish custody, the Di- (whether or not such individual is deceased rector shall— try protects children from smugglers and as a result of a crime). traffickers. (i) assess the suitability of placing the (d) PENALTY.—Whoever knowingly uses, (B) FACTORS FOR ASSESSMENT.—The Direc- child with the parent or legal guardian; and publishes, or permits information to be ex- torate shall consult the Country Reports on (ii) make a written determination on the amined in violation of this section shall be child’s placement within 30 days. fined not more than $10,000. Human Rights Practices and the Trafficking in Persons Report in assessing whether to re- (B) RULE OF CONSTRUCTION.—Nothing in SEC. 103. APPROPRIATE CONDITIONS FOR DE- this Act shall be construed to— TENTION OF UNACCOMPANIED patriate an unaccompanied alien child to a (i) supersede obligations under any treaty ALIEN CHILDREN. particular country. or other international agreement to which (a) STANDARDS FOR PLACEMENT.— (b) REPORT ON REPATRIATION OF UNACCOM- the United States is a party, including The (1) PROHIBITION OF DETENTION IN CERTAIN PANIED ALIEN CHILDREN.— Hague Convention on the Civil Aspects of FACILITIES.—Except as provided in paragraph (1) IN GENERAL.—Not later than 18 months International Child Abduction, the Vienna (2), an unaccompanied alien child shall not after the date of enactment of this Act, and Declaration and Program of Action, and the be placed in an adult detention facility or a annually thereafter, the Secretary shall sub- Declaration of the Rights of the Child; or facility housing delinquent children. mit a report to the Committee on the Judici- (ii) limit any right or remedy under such (2) DETENTION IN APPROPRIATE FACILITIES.— ary of the Senate and the Committee on the international agreement. An unaccompanied alien child who has ex- Judiciary of the House of Representatives on (4) PROTECTION FROM SMUGGLERS AND TRAF- hibited a violent or criminal behavior that efforts to repatriate unaccompanied alien FICKERS.— endangers others may be detained in condi- children. (A) POLICIES AND PROGRAMS.— tions appropriate to such behavior in a facil- (2) CONTENTS.—The report submitted under (i) IN GENERAL.—The Director shall estab- ity appropriate for delinquent children. paragraph (1) shall include— lish policies and programs to ensure that un- (3) STATE LICENSURE.—A child shall not be (A) the number of unaccompanied alien accompanied alien children are protected placed with an entity described in section children ordered removed and the number of from smugglers, traffickers, or other persons 102(a)(1)(E), unless the entity is licensed by such children actually removed from the seeking to victimize or otherwise engage an appropriate State agency to provide resi- United States; such children in criminal, harmful, or ex- dential, group, child welfare, or foster care (B) a description of the type of immigra- ploitative activity. services for dependent children. tion relief sought and denied to such chil- (ii) WITNESS PROTECTION PROGRAMS IN- (4) CONDITIONS OF DETENTION.— dren; CLUDED.—Programs established pursuant to (A) IN GENERAL.—The Director and the Sec- (C) a statement of the nationalities, ages, clause (i) may include witness protection retary of Homeland Security shall promul- and gender of such children; programs. gate regulations incorporating standards for (D) a description of the procedures used to (B) CRIMINAL INVESTIGATIONS AND PROSECU- conditions of detention in such placements effect the removal of such children from the TIONS.—Any officer or employee of the Office that provide for— United States;

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(E) a description of steps taken to ensure (D) develop recommendations on issues rel- (3) SCOPE OF PROGRAM.— that such children were safely and humanely ative to the child’s custody, detention, re- (A) SELECTION OF SITE.—The Director shall repatriated to their country of origin; and lease, and repatriation; select 3 sites in which to operate the pilot (F) any information gathered in assess- (E) take reasonable steps to ensure that— program established under paragraph (1). ments of country and local conditions pursu- (i) the best interests of the child are pro- (B) NUMBER OF CHILDREN.—To the greatest ant to subsection (a)(2). moted while the child participates in, or is extent possible, each site selected under sub- SEC. 105. ESTABLISHING THE AGE OF AN UNAC- subject to, proceedings or matters under the paragraph (A) should have at least 25 chil- COMPANIED ALIEN CHILD. Immigration and Nationality Act (8 U.S.C. dren held in immigration custody at any (a) PROCEDURES.— 1101 et seq.); given time. (1) IN GENERAL.—The Director shall develop (ii) the child understands the nature of the (4) REPORT TO CONGRESS.—Not later than 1 procedures to make a prompt determination legal proceedings or matters and determina- year after the date on which the first pilot of the age of an alien in the custody of the tions made by the court, and that all infor- program site is established under paragraph Department of Homeland Security or the Of- mation is conveyed to the child in an age-ap- (1), the Director shall submit a report on the fice, when the age of the alien is at issue. propriate manner; and achievement of the purposes described in (2) EVIDENCE.—The procedures developed (F) report factual findings relating to— paragraph (2) to the Committee on the Judi- under paragraph (1) shall— (i) information collected under subpara- ciary of the Senate and the Committee on (A) permit the presentation of multiple graph (B); the Judiciary of the House of Representa- forms of evidence, including testimony of (ii) the care and placement of the child tives. the child, to determine the age of the unac- during the pendency of the proceedings or SEC. 202. COUNSEL. companied alien for purposes of placement, matters; and (a) ACCESS TO COUNSEL.— custody, parole, and detention; and (iii) any other information collected under (1) IN GENERAL.—The Director should en- (B) allow the appeal of a determination to subparagraph (D). sure that all unaccompanied alien children an immigration judge. (4) TERMINATION OF APPOINTMENT.—The in the custody of the Office or the Direc- (3) ACCESS TO ALIEN.—The Secretary of guardian ad litem shall carry out the duties torate, who are not described in section Homeland Security shall permit the Office to described in paragraph (3) until the earliest have reasonable access to aliens in the cus- of the date on which— 101(a)(2), have competent counsel to rep- tody of the Secretary so as to ensure a (A) those duties are completed; resent them in immigration proceedings or prompt determination of the age of such (B) the child departs the United States; matters. alien. (C) the child is granted permanent resident (2) PRO BONO REPRESENTATION.—To the (b) PROHIBITION ON SOLE MEANS OF DETER- status in the United States; maximum extent practicable, the Director MINING AGE.—Radiographs or the attestation (D) the child attains the age of 18; or should— of an alien shall not be used as the sole (E) the child is placed in the custody of a (A) make every effort to utilize the serv- means of determining age for the purposes of parent or legal guardian. ices of competent pro bono counsel who determining an alien’s eligibility for treat- (5) POWERS.—The guardian ad litem— agree to provide representation to such chil- ment under this Act or section 462 of the (A) shall have reasonable access to the dren without charge; and Homeland Security Act of 2002 (6 U.S.C. 279). child, including access while such child is (B) ensure that placements made under (c) RULE OF CONSTRUCTION.—Nothing in being held in detention or in the care of a subparagraphs (D), (E), and (F) of section this section shall be construed to place the foster family; 102(a)(1) are in cities where there is a dem- burden of proof in determining the age of an (B) shall be permitted to review all records onstrated capacity for competent pro bono alien on the government. and information relating to such proceedings representation. SEC. 106. EFFECTIVE DATE. that are not deemed privileged or classified; (3) DEVELOPMENT OF NECESSARY INFRA- This title shall take effect on the date (C) may seek independent evaluations of STRUCTURES AND SYSTEMS.—In ensuring that which is 90 days after the date of enactment the child; legal representation is provided to unaccom- of this Act. (D) shall be notified in advance of all hear- panied alien children, the Director shall de- TITLE II—ACCESS BY UNACCOMPANIED ings or interviews involving the child that velop the necessary mechanisms to identify ALIEN CHILDREN TO GUARDIANS AD are held in connection with proceedings or entities available to provide such legal as- LITEM AND COUNSEL matters under the Immigration and Nation- sistance and representation and to recruit SEC. 201. GUARDIANS AD LITEM. ality Act (8 U.S.C. 1101 et seq.), and shall be such entities. (a) ESTABLISHMENT OF GUARDIAN AD LITEM given a reasonable opportunity to be present (4) CONTRACTING AND GRANT MAKING AU- PROGRAM.— at such hearings or interviews; THORITY.— (1) APPOINTMENT.—The Director may ap- (E) shall be permitted to consult with the (A) IN GENERAL.—The Director shall enter point a guardian ad litem, who meets the child during any hearing or interview involv- into contracts with, or award grants to, non- qualifications described in paragraph (2), for ing such child; and profit agencies with relevant expertise in the an unaccompanied alien child. The Director (F) shall be provided at least 24 hours ad- delivery of immigration-related legal serv- is encouraged, wherever practicable, to con- vance notice of a transfer of that child to a ices to children in order to carry out the re- tract with a voluntary agency for the selec- different placement, absent compelling and sponsibilities of this Act, including pro- tion of an individual to be appointed as a unusual circumstances warranting the trans- viding legal orientation, screening cases for guardian ad litem under this paragraph. fer of such child before such notification. referral, recruiting, training, and overseeing (2) QUALIFICATIONS OF GUARDIAN AD (b) TRAINING.— pro bono attorneys. LITEM.— (1) IN GENERAL.—The Director shall provide (B) SUBCONTRACTING.—Nonprofit agencies (A) IN GENERAL.—No person shall serve as a professional training for all persons serving may enter into subcontracts with, or award guardian ad litem unless such person— as guardians ad litem under this section. grants to, private voluntary agencies with (i) is a child welfare professional or other (2) TRAINING TOPICS.—The training pro- relevant expertise in the delivery of immi- individual who has received training in child vided under paragraph (1) shall include train- gration-related legal services to children in welfare matters; and ing in— order to carry out this subsection. (ii) possesses special training on the nature (A) the circumstances and conditions that (C) CONSIDERATIONS REGARDING GRANTS AND of problems encountered by unaccompanied unaccompanied alien children face; and CONTRACTS.—In awarding grants and entering alien children. (B) various immigration benefits for which into contracts with agencies under this para- (B) PROHIBITION.—A guardian ad litem such alien child might be eligible. graph, the Director shall take into consider- shall not be an employee of the Directorate, (c) PILOT PROGRAM.— ation the capacity of the agencies in ques- the Office, or the Executive Office for Immi- (1) IN GENERAL.—Not later than 180 days tion to properly administer the services cov- gration Review. after the date of enactment of this Act, the ered by such grants or contracts without an (3) DUTIES.—The guardian ad litem shall— Director shall establish and begin to carry undue conflict of interest. (A) conduct interviews with the child in a out a pilot program to test the implementa- (5) MODEL GUIDELINES ON LEGAL REPRESEN- manner that is appropriate, taking into ac- tion of subsection (a). TATION OF CHILDREN.— count the child’s age; (2) PURPOSE.—The purpose of the pilot pro- (A) DEVELOPMENT OF GUIDELINES.—The Ex- (B) investigate the facts and circumstances gram established under paragraph (1) is to— ecutive Office for Immigration Review, in relevant to the child’s presence in the United (A) study and assess the benefits of pro- consultation with voluntary agencies and States, including facts and circumstances— viding guardians ad litem to assist unaccom- national experts, shall develop model guide- (i) arising in the country of the child’s na- panied alien children involved in immigra- lines for the legal representation of alien tionality or last habitual residence; and tion proceedings or matters; children in immigration proceedings. Such (ii) arising subsequent to the child’s depar- (B) assess the most efficient and cost-effec- guidelines shall be based on the children’s ture from such country; tive means of implementing the guardian ad asylum guidelines, the American Bar Asso- (C) work with counsel to identify the litem provisions in this section; and ciation Model Rules of Professional Conduct, child’s eligibility for relief from removal or (C) assess the feasibility of implementing and other relevant domestic or international voluntary departure by sharing with counsel such provisions on a nationwide basis for all sources. information collected under subparagraph unaccompanied alien children in the care of (B) PURPOSE OF GUIDELINES.—The guide- (B); the Office. lines developed under subparagraph (A) shall

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00201 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S308 CONGRESSIONAL RECORD — SENATE January 24, 2005 be designed to help protect each child from ment or agency of a State, or an individual special immigrant relief may be appropriate, any individual suspected of involvement in or entity appointed by a State or juvenile including children described in section any criminal, harmful, or exploitative activ- court located in the United States, due to 101(a)(2). ity associated with the smuggling or traf- abuse, neglect, abandonment, or a similar SEC. 303. REPORT. ficking of children, while ensuring the fair- basis found under State law; Not later than 1 year after the date of en- ness of the removal proceeding in which the ‘‘(ii) for whom it has been determined in actment of this Act, and annually thereafter, child is involved. administrative or judicial proceedings that the Secretary of Health and Human Services (C) IMPLEMENTATION.—The Executive Office it would not be in the alien’s best interest to shall submit a report for the previous fiscal for Immigration Review shall adopt the be returned to the alien’s or parent’s pre- year to the Committee on the Judiciary of guidelines developed under subparagraph (A) vious country of nationality or country of the Senate and the Committee on the Judici- and submit the guidelines for adoption by last habitual residence; and ary of the House of Representatives that national, State, and local bar associations. ‘‘(iii) with respect to a child in Federal contains— (b) DUTIES.—Counsel shall— custody, for whom the Office of Refugee Re- (1) data related to the implementation of (1) represent the unaccompanied alien settlement of the Department of Health and section 462 of the Homeland Security Act (6 child in all proceedings and matters relating Human Services has certified to the Director U.S.C. 279); to the immigration status of the child or of the Bureau of Citizenship and Immigra- (2) data regarding the care and placement other actions involving the Directorate; tion Services that the classification of an of children in accordance with this Act; (2) appear in person for all individual mer- alien as a special immigrant under this sub- (3) data regarding the provision of guard- its hearings before the Executive Office for paragraph has not been made solely to pro- ian ad litem and counsel services under this Immigration Review and interviews involv- vide an immigration benefit to that alien, Act; and (4) any other information that the Director ing the Directorate; and except that no natural parent or prior adop- or the Secretary of Health and Human Serv- (3) owe the same duties of undivided loy- tive parent of any alien provided special im- ices determines to be appropriate. alty, confidentiality, and competent rep- migrant status under this subparagraph resentation to the child as is due an adult shall thereafter, by virtue of such parentage, SEC. 304. EFFECTIVE DATE. client. be accorded any right, privilege, or status The amendment made by section 301 shall (c) ACCESS TO CHILD.— under this Act;’’. apply to all aliens who were in the United (1) IN GENERAL.—Counsel shall have reason- (b) ADJUSTMENT OF STATUS.—Section States before, on, or after the date of enact- able access to the unaccompanied alien 245(h)(2)(A) of the Immigration and Nation- ment of this Act. child, including access while the child is ality Act (8 U.S.C. 1255(h)(2)(A)) is amended TITLE IV—CHILDREN REFUGEE AND being held in detention, in the care of a fos- to read as follows: ASYLUM SEEKERS ter family, or in any other setting that has ‘‘(A) paragraphs (4), (5)(A), (6)(A), and (7) of SEC. 401. GUIDELINES FOR CHILDREN’S ASYLUM been determined by the Office. section 212(a) shall not apply; and’’. CLAIMS. (2) RESTRICTION ON TRANSFERS.—Absent (c) ELIGIBILITY FOR ASSISTANCE.—A child (a) SENSE OF CONGRESS.—Congress com- compelling and unusual circumstances, no who has been granted relief under section mends the Immigration and Naturalization child who is represented by counsel shall be 101(a)(27)(J) of the Immigration and Nation- Service for its issuance of its ‘‘Guidelines for transferred from the child’s placement to an- ality Act (8 U.S.C. 1101(a)(27)(J)), shall be eli- Children’s Asylum Claims’’, dated December other placement unless advance notice of at gible for all funds made available under sec- 1998, and encourages and supports the imple- least 24 hours is made to counsel of such tion 412(d) of that Act (8 U.S.C. 1522(d)) until mentation of such guidelines by the Immi- transfer. such time as the child attains the age des- gration and Naturalization Service (and its (d) NOTICE TO COUNSEL DURING IMMIGRA- ignated in section 412(d)(2)(B) of that Act (8 successor entities) in an effort to facilitate TION PROCEEDINGS.— U.S.C. 1522(d)(2)(B)), or until the child is the handling of children’s asylum claims. (1) IN GENERAL.—Except when otherwise re- placed in a permanent adoptive home, which- Congress calls upon the Executive Office for quired in an emergency situation involving ever occurs first. Immigration Review of the Department of the physical safety of the child, counsel shall (d) TRANSITION RULE.—Notwithstanding Justice to adopt the ‘‘Guidelines for Chil- be given prompt and adequate notice of all any other provision of law, any child de- dren’s Asylum Claims’’ in its handling of immigration matters affecting or involving scribed in section 101(a)(27)(J) of the Immi- children’s asylum claims before immigration an unaccompanied alien child, including ad- gration and Nationality Act (8 U.S.C. judges and the Board of Immigration Ap- judications, proceedings, and processing, be- 1101(a)(27)(J)) who filed an application for a peals. fore such actions are taken. visa before the date of enactment of this Act (b) TRAINING.—The Secretary shall provide (2) OPPORTUNITY TO CONSULT WITH COUN- and who was 19, 20, or 21 years of age on the periodic comprehensive training under the SEL.—An unaccompanied alien child in the date such application was filed shall not be ‘‘Guidelines for Children’s Asylum Claims’’ custody of the Office may not give consent denied a visa after the date of enactment of to asylum officers, immigration judges, to any immigration action, including con- this Act because of such alien’s age. members of the Board of Immigration Ap- peals, and immigration officers who have senting to voluntary departure, unless first SEC. 302. TRAINING FOR OFFICIALS AND CER- contact with children in order to familiarize afforded an opportunity to consult with TAIN PRIVATE PARTIES WHO COME and sensitize such officers to the needs of counsel. INTO CONTACT WITH UNACCOM- PANIED ALIEN CHILDREN. children asylum seekers. Voluntary agencies (e) ACCESS TO RECOMMENDATIONS OF GUARD- (a) TRAINING OF STATE AND LOCAL OFFI- shall be allowed to assist in such training. IAN AD LITEM.—Counsel shall be given an op- portunity to review the recommendation by CIALS AND CERTAIN PRIVATE PARTIES.— SEC. 402. UNACCOMPANIED REFUGEE CHILDREN. the guardian ad litem affecting or involving (1) IN GENERAL.—The Secretary of Health (a) IDENTIFYING UNACCOMPANIED REFUGEE CHILDREN.—Section 207(e) of the Immigra- a client who is an unaccompanied alien and Human Services, acting jointly with the tion and Nationality Act (8 U.S.C. 1157(e)) is child. Secretary, shall provide appropriate training to State and county officials, child welfare amended— SEC. 203. EFFECTIVE DATE; APPLICABILITY. specialists, teachers, public counsel, and ju- (1) by redesignating paragraphs (3), (4), (5), (a) EFFECTIVE DATE.—This title shall take venile judges who come into contact with (6), and (7) as paragraphs (4), (5), (6), (7), and effect 180 days after the date of enactment of unaccompanied alien children. (8), respectively; and this Act. (2) CURRICULUM.—The training shall pro- (2) by inserting after paragraph (2) the fol- (b) APPLICABILITY.—The provisions of this vide education on the processes pertaining to lowing: title shall apply to all unaccompanied alien unaccompanied alien children with pending ‘‘(3) An analysis of the worldwide situation children in Federal custody on, before, or immigration status and on the forms of re- faced by unaccompanied refugee children, by after the effective date of this title. lief potentially available. The Director shall region, which shall include an assessment TITLE III—STRENGTHENING POLICIES be responsible for establishing a core cur- of— FOR PERMANENT PROTECTION OF riculum that can be incorporated into edu- ‘‘(A) the number of unaccompanied refugee ALIEN CHILDREN cation, training, or orientation modules or children, by region; SEC. 301. SPECIAL IMMIGRANT JUVENILE VISA. formats that are currently used by these pro- ‘‘(B) the capacity of the Department of (a) J VISA.—Section 101(a)(27)(J) of the Im- fessionals. State to identify such refugees; migration and Nationality Act (8 U.S.C. (b) TRAINING OF DIRECTORATE PERSONNEL.— ‘‘(C) the capacity of the international com- 1101(a)(27)(J)) is amended to read as follows: The Secretary, acting jointly with the Sec- munity to care for and protect such refugees; ‘‘(J) an immigrant, who is 18 years of age retary of Health and Human Services, shall ‘‘(D) the capacity of the voluntary agency or younger on the date of application and provide specialized training to all personnel community to resettle such refugees in the who is present in the United States— of the Directorate who come into contact United States; ‘‘(i) who by a court order, which shall be with unaccompanied alien children. Training ‘‘(E) the degree to which the United States binding on the Secretary of Homeland Secu- for Border Patrol agents and immigration in- plans to resettle such refugees in the United rity for purposes of adjudications under this spectors shall include specific training on States in the coming fiscal year; and subparagraph, was declared dependent on a identifying children at the United States ‘‘(F) the fate that will befall such unac- juvenile court located in the United States borders or at United States ports of entry companied refugee children for whom reset- or whom such a court has legally committed who have been victimized by smugglers or tlement in the United States is not pos- to, or placed under the custody of, a depart- traffickers, and children for whom asylum or sible.’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00202 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S309 (b) TRAINING ON THE NEEDS OF UNACCOM- ‘‘(iii) reassign any unaccompanied alien for the conduct of their previous attor- PANIED REFUGEE CHILDREN.—Section 207(f)(2) child to a similar facility that is in compli- ney. of the Immigration and Nationality Act (8 ance with such section.’’. Perhaps one of the most compelling U.S.C. 1157(f)(2)) is amended by— SEC. 602. TECHNICAL CORRECTIONS. reasons for permitting the family to re- (1) striking ‘‘and’’ after ‘‘countries,’’; and Section 462(b) of the Homeland Security main in the United States is the dev- (2) inserting before the period at the end Act of 2002 (6 U.S.C. 279(b)), as amended by astating impact their deportation the following: ‘‘, and instruction on the section 601, is amended— needs of unaccompanied refugee children’’. (1) in paragraph (3), by striking ‘‘paragraph would have on their children—three of SEC. 403. EXCEPTIONS FOR UNACCOMPANIED (1)(G)’’ and inserting ‘‘paragraph (1)’’; and whom are U.S. citizens, as I stated ear- ALIEN CHILDREN IN ASYLUM AND (2) by adding at the end the following: lier, and the other two who have lived REFUGEE-LIKE CIRCUMSTANCES. ‘‘(5) STATUTORY CONSTRUCTION.—Nothing in in the United States since they were (a) PLACEMENT IN REMOVAL PROCEEDINGS.— paragraph (2)(B) may be construed to require toddlers. For these children, this coun- Any unaccompanied alien child apprehended that a bond be posted for unaccompanied by the Directorate, except for an unaccom- try is the only country they really alien children who are released to a qualified panied alien child subject to exceptions know. sponsor.’’. under paragraph (1)(A) or (2) of section Nayely, the oldest, is a freshman at (101)(a), shall be placed in removal pro- SEC. 603. EFFECTIVE DATE. Fresno Pacific University. She was the ceedings under section 240 of the Immigra- The amendments made by this title shall first in her family to graduate from tion and Nationality Act (8 U.S.C. 1229a). take effect as if included in the Homeland high school and the first to attend col- Security Act of 2002 (6 U.S.C. 101 et seq.). (b) EXCEPTION FROM TIME LIMIT FOR FILING lege. She attends Fresno Pacific Uni- ASYLUM APPLICATION.—Section 208(a)(2) of versity, a regionally ranked university, the Immigration and Nationality Act (8 By Mrs. FEINSTEIN: U.S.C. 1158(a)(2)) is amended by adding at the S. 120. A bill for the relief of on a full tuition scholarship package end the following: Esidronio Arreola-Saucedo, Maria Elna and works part-time in the admissions ‘‘(E) APPLICABILITY.—Subparagraphs (A) Cobian Arreola, Nayely Bibiana office. and (B) shall not apply to an unaccompanied Arreola, and Cindy Jael Arreola; to the At her young age, Nayely has dem- alien child as defined in section 101(a)(51).’’. Committee on the Judiciary. onstrated a strong commitment to the TITLE V—AUTHORIZATION OF Mrs. FEINSTEIN. Mr. President, I ideals of citizenship in her adopted APPROPRIATIONS offer today private immigration relief country. She has worked hard to SEC. 501. AUTHORIZATION OF APPROPRIATIONS. legislation to provide lawful perma- achieve her full potential both in her (a) IN GENERAL.—There are authorized to nent residence status to Esidronio academic endeavors and through the be appropriated to the Department of Home- service she provides her community. As land Security, the Department of Justice, Arreola-Saucedo, Maria Elena Cobian Arreola, Nayely Bibiana Arreola and the Associate Dean of Enrollment and the Department of Health and Human Services, Cary Templeton, at Fresno Services, such sums as may be necessary to Cindy Jael Arreola, Mexican nationals Pacific University states in a letter of carry out— living in the Fresno area of California. (1) the provisions of section 462 of the Mr. and Mrs. Arreola have lived in support, ‘‘[t]he leaders of Fresno Pa- Homeland Security Act of 2002 (6 U.S.C. 279); the United States for almost 20 years. cific University saw in Nayely, a young and Two of their five children, Nayely, age person who will become exemplary of (2) the provisions of this Act. 18, and Cindy, age 16, also stand to ben- all that is good in the American (b) AVAILABILITY OF FUNDS.—Amounts ap- dream.’’ efit from this legislation. Their other propriated pursuant to subsection (a) shall In high school, Nayely was a member three children, Roberto, age 13, Daniel, remain available until expended. of Advancement Via Individual Deter- TITLE VI—AMENDMENTS TO THE age 9, and Saray, age 8, are United mination, AVID, a college preparatory HOMELAND SECURITY ACT OF 2002 States citizens. Today, Mr. and Mrs. program in which students commit to SEC. 601. ADDITIONAL RESPONSIBILITIES AND Arreola and their two eldest children determining their own futures through POWERS OF THE OFFICE OF REF- face deportation. achieving a college degree. Nayely was UGEE RESETTLEMENT WITH RE- The story of the Arreola family is SPECT TO UNACCOMPANIED ALIEN also president of the Key Club, a com- CHILDREN. compelling and I believe they merit munity service organization. She (a) ADDITIONAL RESPONSIBILITIES OF THE DI- Congress’s special consideration for helped mentor freshmen and partici- RECTOR.—Section 462(b)(1) of the Homeland such an extraordinary form of relief as pates in several other student organi- Security Act of 2002 (6 U.S.C. 279(b)(1)) is a private bill. zations in her school. Perhaps the amended— The Arreolas are in this uncertain (1) in subparagraph (K), by striking ‘‘and’’ greatest hardship to this family, if situation in part because of grievous forced to return to Mexico, will be her at the end; errors committed by their previous (2) in subparagraph (L), by striking the pe- lost opportunity to realize her dreams riod at the end and inserting ‘‘, including counsel, who has since been disbarred. and further contribute to her commu- regular follow-up visits to such facilities, In fact, the attorney’s conduct was so nity and to this country. placements, and other entities, to assess the egregious that it compelled an immi- It is clear to me that Nayely feels a continued suitability of such placements; gration judge to write the Executive strong sense of responsibility for her and’’; and Office of Immigration Review seeking community and country. By all indica- (3) by adding at the end the following: his disbarment for the detriment he ‘‘(M) ensuring minimum standards of care tions, this is the case as well for all of caused his immigration clients. the members of her family. for all unaccompanied alien children— Mr. Arreola has lived in the United ‘‘(i) for whom detention is necessary; and The Arreolas also have other family ‘‘(ii) who reside in settings that are alter- States since 1986. He was an agricul- who are lawful permanent residents of native to detention.’’. tural migrant worker in the fields of this country or United States citizens. (b) ADDITIONAL POWERS OF THE DIRECTOR.— California for several years, and as Mrs. Arreola has three brothers who Section 462(b) of the Homeland Security Act such would have been eligible for per- are U.S. citizens and Mr. Arreola has a of 2002 (6 U.S.C. 279(b)) is amended by adding manent residence through the Seasonal sister who is a U.S. citizen. It is also at the end the following: Agricultural Workers, SAW, program my understanding that they have no ‘‘(4) AUTHORITY.—In carrying out the du- had he known about it. ties under paragraph (3), the Director is au- immediate family in Mexico. thorized to— Mrs. Arreola was living in the United According to immigration authori- ‘‘(A) contract with service providers to per- States at the time she became preg- ties, this family has never had any form the services described in sections 102, nant with her daughter Cindy, but re- problems with law enforcement. I am 103, 201, and 202 of the Unaccompanied Alien turned to Mexico to give birth so as to told that they have filed their taxes for Child Protection Act of 2005; and avoid any problems with the Immigra- every year from 1990 to the present. ‘‘(B) compel compliance with the terms tion and Naturalization Service. They have always worked hard to sup- and conditions set forth in section 103 of the Given the length of time that the port themselves. As I previously men- Unaccompanied Alien Child Protection Act Arreolas had, and have been, in the tioned, Mr. Arreola was previously em- of 2005, including the power to— United States it is quite likely that ‘‘(i) declare providers to be in breach and ployed as a farm worker, but now has seek damages for noncompliance; they would have qualified for relief his own business repairing electronics. ‘‘(ii) terminate the contracts of providers from deportation pursuant to the can- His business has been successful that are not in compliance with such condi- cellation of removal provisions of the enough to enable him to purchase a tions; and Immigration and Nationality Act, but home for his family.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00203 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S310 CONGRESSIONAL RECORD — SENATE January 24, 2005 It seems so clear to me that this fam- person who will become exemplary of all GRANITE HILLS HIGH SCHOOL, ily has embraced the American dream that is good in the American dream. She has Porterville, CA. and their continued presence in our heart in the face of tough times, desire lead- DEAR SENATOR FEINSTEIN: I am writing you country would do so much to enhance ing to solid community service, and leader- this letter on behalf of Nayely Arreola and ship that our country desperately needs. her family. It is with a grateful heart that I the values we hold dear. Enactment of Nayely has become a role model of success praise you for all you have done so far for the legislation I have introduced today and hope that is so important to many young this family. I am urging that the Arreola bill will enable the Arreolas to continue to Hispanic students in Central California. She be reintroduced so that this great family can make significant contributions to their works in the admission office and often stay in our country. community as well as the United speaks to young people about the importance While Nayely was at Granite Hills High States. of a college education. Fresno Pacific was so School, she was my prized pupil. I am the I ask my colleagues to support this impressed with her high school achievements Speech and Debate teacher and Nayely rep- private bill. I also ask unanimous con- that we offered her a full tuition scholarship resented our school in the Optimist Speech package to attend our fully accredited and contest and the Lions Club Speech contest. sent that the text of the legislation be regionally ranked university. In the Optimist contest she was a Club and printed in the RECORD and that the Nayely’s sister Cindy, now 16, is following Zone winner and last year in the Lions Club three letters of community support be Nayely’s example. So are Roberto, now 13, contest she was a club winner. Nayely was printed in the RECORD. Daniel, now 9, and Saray, now 8 years old. not only had my respect as a speaker and a There being no objection, the mate- Nayely’s parents, Esidronio Arreola-Saucedo student in my program, she had my highest rial was ordered to be printed in the and Maria Elena Cobian Arreola are con- opinion as the person she represented to her RECORD, as follows: tinuing to be positive role models to their peers and teachers. I can honestly say Nayely was the hardest working student I S. 120 children and no burden on our American way of life. They would have been eligible for per- have encountered in my tenure at Granite Be it enacted by the Senate and House of Rep- manent residence through the Seasonal Agri- Hills High. She graduated fourth in her class resentatives of the United States of America in cultural Workers (SAW) program except for and was a C. S. F. seal bearer at graduation. Congress assembled, poor advice from their attorney who govern- She was the president of the Key Club where SECTION 1. ADJUSTMENT OF STATUS. ment officials have since disbarred. Please she assisted in food, coat and toy drives for (a) IN GENERAL.—Notwithstanding any reintroduce a private bill seeking to grant the needy of our community. She was a other provision of law or any order, for the this Porterville Family permanent resident LINK, leader, which works with freshmen purposes of the Immigration and Nationality status. All of us at Fresno Pacific University and their orientation to our school. Act (8 U.S.C. 1101 et seq.), Esidronio Arreola- who have come to know and love this family Nayely Arreola is more than a remarkable Saucedo, Maria Elna Cobian Arreola, Nayely would be in your debt as you to continue student, she is a remarkable person. Every- Bibiana Arreola, and Cindy Jael Arreola your support of the Arreola family. thing she has done has been to prepare her to shall be deemed to have been lawfully admit- Sincerely, go to a University in the United States. She ted to, and remained in, the United States, CARY W. TEMPLETON, was accepted at Fresno Pacific University as and shall be eligible for issuance of an immi- Associate Dean of Enrollment Services. a President’s Scholar. She is doing an out- grant visa or for adjustment of status under standing job at Fresno Pacific University as section 245 of the Immigration and Nation- a freshman. She is America’s dream-her con- GRANITE HILLS HIGH SCHOOL, ality Act (8 U.S.C. 1255). tribution to our country will be great. I have Porterville, CA, January 14, 2005. (b) APPLICATION AND PAYMENT OF FEES.— watched with great pride as she has grown Subsection (a) shall apply only if the appli- DEAR SENATOR FEINSTEIN: This letter is in into a wonderful young lady, ready to take cations for issuance of immigrant visas or support of Granite Hills High School grad- on the world. the applications for adjustment of status are uate Nayely Arreola whom I have had the Please, I urge you to reintroduce this bill filed with appropriate fees within 2 years pleasure of knowing for the past four and and work to have it passed. after the date of enactment of this Act. one-half years. Nayely is a responsible, hard CHRISTINE L. AMANN, (c) REDUCTION OF IMMIGRANT VISA NUM- working and intelligent young lady. Reading Specialist/Speech Coordinator. BERS.—Upon the granting of immigrant visas Nayely was born in Mexico; English is her to Esidronio Arreola-Saucedo, Maria Elna second language. She came to the United By Mr. DEWINE (for himself, Mr. Cobian Arreola, Nayely Bibiana Arreola, and States when she was approximately five DURBIN, Mr. ALLEN, Mr. HAGEL, Cindy Jael Arreola, the Secretary of State years old. When Nayely enrolled in high Mr. COLEMAN, Mr. JOHNSON, Mr. shall instruct the proper officer to reduce by school at Granite Hills High School she was OBAMA, and Mr. LEAHY): 4, during the current or subsequent fiscal enrolled in our AVID program. AVID, ‘‘Ad- S. 121. A bill to amend titles 10 and year, the total number of immigrant visas vancement via Individual Determination’’, is 38, United States Code, to improve the that are made available to natives of the a program for students who have the ability benefits provided for survivors of de- country of the aliens’ birth under section and desire to go to college but no one in 202(e) or 203(a) of the Immigration and Na- their family has attended college. ceased members of the Armed Forces, and for other purposes; to the Com- tionality Act (8 U.S.C. 1152(e), 1153(a)), as ap- Nayely took our AVID program and Gran- plicable. ite Hills High School by storm. What a suc- mittee on Armed Services. FRESNO PACIFIC UNIVERSITY, cessful four year high school career she had. Mr. DEWINE. Mr. President, I rise Fresno, CA. Throughout high school she was still listed today to honor the many families of Hon. DIANNE FEINSTEIN, as an ‘‘English Language Learner’’. Nayely our Nation’s servicemen and women. Washington, DC. successfully overcame not only a language We owe them a tremendous debt of SENATOR FEINSTEIN: I am writing to ask barrier but many other obstacles and gratitude for the services they have you to continue your support for the Arreola emerged as a respected scholar. performed in supporting their family family of Porterville, CA. and to ask you to Nayely graduated from Granite Hills High reintroduce a private bill to grant the family members in uniform. These families School with honors, was a speaker at our permanent residency. It is laudable that you embody courage, patriotism, and dedi- graduation ceremony, and was and is highly came to this families aid in May 2003 because cation. regarded and respected by her peers and our of grievous errors committed by their former teachers. Upon graduation, she earned The Mr. President, we have all heard the immigration attorney. You recognized the Good Samaratin Scholarship a ‘‘full ride’’ saying, ‘‘if the military wanted you to outstanding academic achievements of scholarship to Fresno Pacific University have a family, they would have issued Nayely, Esidronio and Maria Arreola’s oldest where she will excel as she did here I am you one at boot camp.’’ But, the truth daughter, as one of the most compelling rea- sure. She will be successful in any career she today is that more than 50% of Amer- sons to allow the family to remain in the pursues. Her parents did an excellent job: I United States. You recognized that the ica’s men and women in uniform are wish I had done as well with my children. ‘‘Arreola family had and continues to em- married and about 50% of those fami- brace the American dream and that their Cindy Arreola, Nayely’s younger sister, is lies also have children. These families continued presence in our country would en- currently a student at Granite Hills High supply endless support for our service- hance the values that we as Americans hold School. men and women in life and I believe we dear.’’ Unfortunately the private bill you in- We need more families like the Arreolas in need to provide them that same sup- troduced was not passed into law and the our country. Thank you for supporting them port in the event of the death of the family is in need of your support again. in the past and I fervently hope and pray the service member while serving on active You were right about Nayely!!! Nayely family will be allowed to remain in the Arreola, the oldest daughter, has continued United States. duty. That is why I am joining my col- in her outstanding academic achievements Sincerely yours, leagues Senators DURBIN, ALLEN, and community service. The leaders at Fres- VERYL ANN DUNCAN, HAGEL, COLEMAN, JOHNSON, OBAMA, and no Pacific University saw in Nayely, a young Principal. LEAHY in introducing legislation today

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00204 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S311 to improve critical survivor benefits However, since the household income, ‘‘(e) ADDITIONAL DEATH GRATUITY FOR DE- for those families who have lost a loved if the surviving spouse is not employed, PENDENT CHILDREN.—(1) If, in the case of a one on active duty. would reach just $28,860, then it is like- death for which a death gratuity is payable Our legislation would amend four key under section 1475 or 1476 of this title, the de- ly that only about $14,000 will be spent ceased is survived by one or more children benefit programs to improve the over- for that purpose. Clearly, that’s just described in subsection (b) who are under 18 all quality of life for survivors and de- not enough. Our bill would help ensure years of age on the date of the death, the pendent children. First, it would in- that the essential needs of the family Secretary concerned shall pay an additional crease the death gratuity to $100,000 can be met. death gratuity to each such child when that and create a death gratuity for each Finally, our legislation would in- child attains 21 years of age. child under the age of 18 in the amount ‘‘(2) A death gratuity payable to any per- crease the benefits available from the son under this subsection with respect to a of $25,000. Currently, the gratuity for Survivors’ and Dependents’ Edu- death is in addition to any death gratuity spouses is just $12,000, while no benefit cational Assistance Program. It would that is payable to that person under section exits for dependent children. This eliminate the current 45 month cap on 1475 or 1476 of this title with respect to such change would provide flexibility for the benefit payments and establish an death pursuant to subsection (a)(2).’’. spouse in maintaining a home, paying $80,000 lump sum that can be drawn (2) AMOUNT.— off remaining debt, and providing im- down for any educational expenses, in- (A) Subsection (a) of section 1478 of such mediate funds to transition the family title, as amended by subsection (a) of this cluding tuition, fees, room, board, and section, is further amended by inserting to a life without the service member. books. Under current law, a survivor after the first sentence the following new Additionally, the dependent benefit only has access to about $38,867 if he/ sentence: ‘‘The death gratuity payable to a would offer surviving children an ini- she attends college or a trade school on child of a deceased person under section tial investment that can be used to a full-time basis. As we know, this 1477(e) of this title shall be $25,000.’’. transition to adulthood, for example, amount would not even guarantee a (B) Subsection (c) of such section is as a down payment on a house or for survivor access to a college degree amended by striking ‘‘the amount’’ and in- serting ‘‘each amount’’. college tuition. from a state university. In fact, let’s Second, our legislation would extend (3) CONFORMING AMENDMENTS.—(A) Section use the Ohio State University as an ex- 1477(d) of such title is amended by striking military health insurance, known as ample. This public institution will cost ‘‘he receives the death gratuity,’’ and insert- TRICARE Prime, to every dependent in-state students roughly $18,600 for the ing ‘‘receiving payment of a death gratuity child of a deceased service member at 2004–2005 school year. Now, if there under section 1475 or 1476 of this title,’’. no cost until the age of 21, or until 23 were no cost increases over the course (B) Section 1479 of such title is amended— if the dependent attends college. The of a four year matriculation, which, in (i) by striking ‘‘immediate’’; and Department of Defense indicates that this day and age, is an unrealistic as- (ii) by inserting ‘‘or 1477(e)’’ after ‘‘section this important benefit would save de- 1475’’. sumption, a degree from OSU would (c) EFFECTIVE DATE.— pendents approximately $15,000 per cost $75,600. That is $36,733 more than (1) IN GENERAL.—Except as provided in year compared to the cost of private the current benefit available from the paragraph (2), this section and the amend- health insurance premiums. Expanded Department of Veterans Affairs. Clear- ments made by this section shall take effect TRICARE coverage also guarantees ly a gap exists. as of October 1, 2001, and shall apply with re- that surviving dependents would con- Mr. President, we owe the families of spect to deaths occurring on or after such tinue to have access to some of the those who have lost loved ones in ac- date. (2) EXCEPTION.—The amendment made by best doctors this country has to offer tive duty our gratitude and support. and would receive adequate health care subsection (b)(2)(B) shall take effect as of Oc- The President’s inauguration last week tober 28, 2004, immediately following the en- and treatment. reminded me of something President actment of Public Law 108–375. Third, our legislation would increase Abraham Lincoln said in his second in- SEC. 2. INCREASED PERIOD OF CONTINUED the dependency and indemnity com- augural address. He said this: ‘‘With TRICARE COVERAGE OF CHILDREN pensation, or DIC, for a spouse to $1500 malice toward none, with charity for OF MEMBERS OF THE UNIFORMED per month, as well as $750 per month SERVICES WHO DIE WHILE SERVING all, with firmness in the right as God ON ACTIVE DUTY FOR A PERIOD OF for each child. In July 2004, the Govern- gives us to see the right, let us strive MORE THAN 30 DAYS. ment Accountability Office released a on to finish the work we are in, to bind (a) PERIOD OF ELIGIBILITY.—Section 1079(g) report titled ‘‘Military Personnel: Sur- up the nation’s wounds, to care for him of title 10, United States Code, is amended— vivor Benefits for Service members and who shall have borne the battle and for (1) by inserting ‘‘(1)’’ after ‘‘(g)’’; (2) by striking the second sentence and in- Federal, State, and City Employees.’’ his widow and his orphan. . . .’’ It is This report outlined hypothetical situ- serting the following: time to do a better job of caring for ‘‘(2) In addition to any continuation of eli- ations to demonstrate the benefits re- these families. It is time to ensure that gibility for benefits under paragraph (1), ceived at certain pay grades. This re- this Congress does what is right. I ask when a member dies while on active duty for port indicated that an E–3, meaning a my colleagues to stand with me in sup- a period of more than 30 days, the member’s Private First Class or a Lance Cor- port for these families and do our part, dependents who are receiving benefits under poral, with two dependents and three a plan covered by subsection (a) shall con- as they have done theirs. tinue to be eligible for such benefits during years of service would receive $1,182 per I ask unanimous consent that the month from the Survivor Benefit Plan, the three-year period beginning on the date text of the bill be printed in the of the member’s death, except that, in the SBP, and $1208 per month for DIC. This RECORD. case of such a dependent who is a child of the equals $28,680 per year for the family to There being no objection, the bill was deceased, the period of continued eligibility live on if the surviving spouse is not ordered to be printed in the RECORD, as shall be the longer of the following periods employed. follows: beginning on such date: In 2003, the USDA Center for Nutri- ‘‘(A) Three years. tion Policy and Promotion released a S. 121 ‘‘(B) The period ending on the date on report on the costs associated with Be it enacted by the Senate and House of Rep- which the child attains 21 years of age. raising children. The study indicated resentatives of the United States of America in ‘‘(C) In the case of a child of the deceased Congress assembled, who, at 21 years of age, is enrolled in a full- that, on average across the United SECTION 1. DEATH GRATUITIES PAYABLE WITH time course of study in a secondary school or States, families spent between $9,500 RESPECT TO DECEASED MEMBERS in a full-time course of study in an institu- and $10,500 per child on expenses in a OF THE ARMED FORCES. tion of higher education approved by the ad- two child, husband-wife family. Fur- (a) INCREASED AMOUNT OF DEATH GRA- ministering Secretary and was, at the time ther, this study indicated that families TUITY.—Section 1478(a) of title 10, United of the member’s death, in fact dependent on with a household income below $47,000 States Code, is amended by striking the member for over one-half of the child’s per year were only able to spend from ‘‘$12,000’’ in the first sentence and inserting support, the period ending on the earlier of $7000 to $8000 per year on expenses to ‘‘$100,000’’. the following dates: (b) ADDITIONAL DEATH GRATUITY PAYABLE ‘‘(i) The date on which the child ceases to raise a child. For the hypothetical fam- TO CHILD OF DECEASED.— pursue such a course of study, as determined ily I just described, it would cost more (1) PAYMENT AT AGE 21.—Section 1477 of by the administering Secretary. than $18,000 per year just to meet the such title is amended by adding at the end ‘‘(ii) The date on which the child attains 23 expenses of raising the two dependents. the following new subsection: years of age.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00205 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S312 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(3) For the purposes of paragraph (2)(C), a Subsection (a) of section 3511 of title 38, of any period of twelve consecutive months child shall be treated as being enrolled in a United States Code, is amended to read as that is pursued by an eligible person who is full-time course of study in an institution of follows: concurrently engaged in agricultural em- higher education during any reasonable pe- ‘‘(a)(1) Notwithstanding any other provi- ployment which is relevant to such institu- riod of transition between the child’s com- sion of this chapter or chapter 36 of this tional agricultural courses as determined pletion of a full-time course of study in a title, any payment of educational assistance under standards prescribed by the Secretary. secondary school and the commencement of described in paragraph (2) shall not be ‘‘(4) A course or courses or other program an enrollment in a full-time course of study charged against the entitlement of any indi- of special educational assistance as provided in an institution of higher education, as de- vidual under this chapter. in section 3491(a) of this title. termined by the administering Secretary. ‘‘(2) The payment of educational assistance ‘‘(5) A program of apprenticeship or other ‘‘(4) No charge may be imposed for any referred to in paragraph (1) is the payment of on-job training pursued in a State as pro- benefits coverage under this chapter that is such assistance to an individual for pursuit vided in section 3687(a) of this title. provided for a child for a period of continued of a course or courses under this chapter if ‘‘(6) In the case of an eligible spouse or sur- eligibility under paragraph (2), or for any the Secretary finds that the individual— viving spouse, a program of education exclu- benefits provided to such child during such ‘‘(A) had to discontinue such course pur- sively by correspondence as provided in sec- period under that coverage.’’. suit as a result of being ordered to serve on tion 3686 of this title. (b) EFFECTIVE DATE.—This section and the active duty under section 688, 12301(a), ‘‘(7) A special training allowance for spe- amendments made by this section shall take 12301(d), 12301(g), 12302, or 12304 of title 10; cial restorative training as provided in sec- effect as of October 1, 2001, and shall apply and tion 3542 of this title. with respect to deaths occurring on or after ‘‘(B) failed to receive credit or training such date. ‘‘(c) If a program of education is pursued time toward completion of the individual’s by an eligible person at an institution lo- SEC. 3. INCREASE AND ENHANCEMENT OF DE- approved educational, professional, or voca- cated in the Republic of the Philippines, any PENDENCY AND INDEMNITY COM- tional objective as a result of having to dis- PENSATION FOR SURVIVING educational assistance for such person under SPOUSES. continue, as described in subparagraph (A), this chapter shall be paid at the rate of $0.50 (a) IN GENERAL.—Subsection (a) of section the course pursuit.’’. for each dollar. 1311 of title 38, United States Code, is amend- (2) CONFORMING AMENDMENTS.—(A) The ‘‘(d)(1) Subject to paragraph (2), the ed— heading of section 3511 of such title is amount of educational assistance payable (1) in paragraph (1), by striking ‘‘$967’’ and amended to read as follows: under this chapter for a licensing or certifi- inserting ‘‘$1,500’’; ‘‘§ 3511. Treatment of certain interruptions in cation test described in section 3501(a)(5) of (2) in paragraph (2), by inserting ‘‘or (4)’’ pursuit of programs of education’’. this title is the lesser of $2,000 or the fee after ‘‘paragraph (1)’’; and (B) Section 3532(g) of such title, as amend- charged for the test. (3) by adding at the end the following new ed by section 106(b)(3) of the Veterans Earn ‘‘(2) In no event shall payment of edu- paragraph: and Learn Act of 2004 (title I of Public Law cational assistance under this subsection for ‘‘(4) In the case of a surviving spouse who 108–454), is further amended— such a test exceed the amount of the individ- remarries, dependency and indemnity com- (i) by striking paragraph (2); and ual’s available entitlement under this chap- pensation shall be paid to the surviving (ii) by redesignating paragraph (3) as para- ter.’’. spouse at a monthly rate equal to 50 percent graph (2). (2) CONFORMING AMENDMENTS.—(A) Section of the monthly rate otherwise provided (C) Section 3541 of such title is amended to 3533 of such title is amended to read as fol- under paragraph (1) for— read as follows: lows: ‘‘(A) the first 60 months beginning after the date of such remarriage; or ‘‘§ 3541. Special restorative training ‘‘§ 3533. Tutorial assistance ‘‘(B) in the case of a surviving spouse with ‘‘(a) The Secretary may, at the request of ‘‘An eligible person shall, without any one or more children below the age of 18, an eligible person— charge to any entitlement of such person to each month until the first month beginning ‘‘(1) determine whether such person is in educational assistance under section 3532(a) after the date on which each such child has need of special restorative training; and of this title be entitled to the benefits pro- attained the age of 18.’’. ‘‘(2) if such need is found to exist, prescribe vided an eligible veteran under section 3492 (b) RATES FOR SURVIVING SPOUSES WITH a course which is suitable to accomplish the of this title.’’. DEPENDENT CHILDREN.—Such section is fur- purposes of this chapter. (B) Section 3534 of such title is repealed. ther amended— ‘‘(b) A course of special restorative train- (C) Section 3542 of such title is amended— (1) by striking subsection (b) and inserting ing under subsection (a) may, at the discre- (i) in subsection (a), by striking ‘‘computed the following new subsection (b): tion of the Secretary, contain elements that at the basic rate’’ and all that follows ‘‘(b)(1) If there is a surviving spouse with would contribute toward an ultimate objec- through the end of the subsection and insert- one or more children below the age of 18, the tive of a program of education.’’. ing a period; and dependency and indemnity compensation (D) Section 3695(a)(4) of such title is (ii) in subsection (b), by striking ‘‘an edu- paid monthly to the surviving spouse shall amended by striking ‘‘35,’’. cational assistance allowance’’ and inserting be increased by $750 for each such child. (b) EXTENSION OF DELIMITING AGE OF ELIGI- ‘‘educational assistance’’. ‘‘(2)(A) Except as provided in subparagraph BILITY FOR DEPENDENTS.—Section 3512(a) of (D) Section 3543(c) of such title is amend- (B), the increase in dependency and indem- title 38, United States Code, is amended by ed— nity compensation payable to a surviving striking ‘‘twenty-sixth birthday’’ each place (i) in paragraph (1), by adding ‘‘and’’ at the spouse under paragraph (1) shall cease begin- it appears and inserting ‘‘thirtieth birth- end; ning with the first month commencing after day’’. (ii) by striking paragraph (2); and the month in which all children of the sur- (c) AMOUNT OF EDUCATIONAL ASSISTANCE.— (iii) by redesignating paragraph (3) as para- viving spouse have attained the age of 18. (1) IN GENERAL.—Section 3532 of title 38, graph (2). ‘‘(B) The cessation under subparagraph (A) United States Code, is amended to read as (E) Section 3564 of such title is amended by of the increase in dependency and indemnity follows: striking ‘‘rates payable under sections 3532, compensation payable to a surviving spouse ‘‘§ 3532. Amount of educational assistance under paragraph (1) shall not occur with re- 3534(b), and 3542(a)’’ and inserting ‘‘aggregate spect to any child of the surviving spouse ‘‘(a) The aggregate amount of educational amount of educational assistance payable who, before attaining the age of 18, becomes assistance to which an eligible person is en- under section 3532’’. permanently incapable of support.’’; and titled under this chapter is $80,000, as in- (F) Paragraph (1) of section 3565(b) of such (2) by striking subsection (e), as added by creased from time to time under section 3564 title is amended to read as follows: section 301(a) of the Veterans Benefits Im- of this title. ‘‘(1) educational assistance payable under provements Act of 2004 (Public Law 104–454). ‘‘(b) Within the aggregate amount provided section 3532 of this title, including the spe- (c) EFFECTIVE DATE.—(1) Except as pro- for in subsection (a), educational assistance cial training allowance referred to in sub- vided in paragraph (2), the amendments under this chapter may be paid for any pur- section (b)(7) of such section, shall be paid at made by this section shall take effect on Oc- pose, and in any amount, as follows: the rate of $0.50 for each dollar; and’’. tober 1, 2001, and shall apply with respect to ‘‘(1) A program of education consisting of (G) Section 3687 of such title is amended— months beginning on or after that date. institutional courses. (i) in subsection (a)— (2) The amendment made by subsection ‘‘(2) A full-time program of education that (I) in the matter preceding paragraph (1), (b)(2) shall take effect on the date of the en- consists of institutional courses and alter- by striking ‘‘or an eligible person (as defined actment of this Act. nate phases of training in a business or in- in section 3501(a) of this title)’’; and SEC. 4. EXPANSION AND ENHANCEMENT OF SUR- dustrial establishment with the training in (II) in the flush matter following para- VIVORS’ AND DEPENDENTS’ EDU- the business or industrial establishment graph (2), by striking ‘‘chapters 34 and 35’’ CATIONAL ASSISTANCE. being strictly supplemental to the institu- and inserting ‘‘chapter 34’’; (a) TERMINATION OF DURATIONAL LIMITA- tional portion. (ii) in subsection (c), by striking ‘‘chapters TION ON USE OF EDUCATIONAL ASSISTANCE.— ‘‘(3) A farm cooperative program consisting 34 and 35’’ and inserting ‘‘chapter 34’’; and (1) TERMINATION OF LIMITATION AND RE- of institutional agricultural courses (iii) in subsection (e), as added by section STATEMENT OF CONTINUING REQUIREMENTS.— prescheduled to fall within forty-four weeks 102(a) of the Veterans Earn and Learn Act of

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00206 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S313 2004 (title I of Public Law 108–454), by strik- place. While death penalty proponents showed troubling racial and geographic ing paragraph (3) and inserting the following claim that the death penalty is fair, ef- disparities in the Federal Govern- new paragraph (3): ficient, and a deterrent, the fact re- ment’s administration of the death ‘‘(3) In this subsection, the term ‘indi- mains that our criminal justice system penalty. In other words, who lives and vidual’ means an eligible veteran who is en- titled to monthly educational assistance al- has failed and has resulted in at least who dies in the Federal system appears lowances payable under section 3015(e) of 117 very grave mistakes. to relate to the color of the defendant’s this title.’’. Nine hundred and forty-four execu- skin or the region of the country where (d) OTHER CONFORMING AMENDMENTS.—(1) tions, and 117 exonerations in the mod- the defendant is prosecuted. Attorney Section 3524 of title 38, United States Code, ern death penalty era. That is an em- General Janet Reno was so disturbed is amended by striking ‘‘allowance’’ each barrassing statistic, one that should by the results of that report that she place it appears. have us all questioning the use of cap- ordered a further, in-depth study of the (2)(A) Section 3531 of such title is amend- ital punishment in this country. And results. Attorney General John ed— (i) in subsection (a), by striking ‘‘an edu- we continue to learn about more cases Ashcroft pledged to continue that cational assistance allowance’’ and inserting in which our justice system has failed. study, but we still await the results of ‘‘educational assistance’’; and Since I first introduced this bill in No- that further study. The Federal Gov- (ii) in subsection (b), by striking ‘‘allow- vember of 1999, 36 death row inmates ernment must do all that it can to en- ance’’. have been exonerated throughout the sure that no person is ever subject to (B) The heading of such section is amended country, 12 since I introduced this bill harsher penalties because of the color by striking ‘‘allowance’’. in the last Congress in February 2003. of the defendant’s skin. (3) Section 3537(a) of such title is amended Since I last introduced this bill, 115 I am certain that not one of my col- by striking ‘‘additional’’. people have been executed nationwide. leagues here in the Senate, not a single (e) CLERICAL AMENDMENTS.—The table of sections at the beginning of chapter 35 of How many innocents are among them? one, would defend racial discrimination title 38, United States Code, is amended— We may never know. in this ultimate punishment. The most (1) by striking the item relating to section While executions continue and the fundamental guarantee of our Con- 3511 and inserting the following new item: death row population grows, the na- stitution is equal justice under law, ‘‘3511. Treatment of certain interruptions in tional debate on the death penalty in- and equal protection of the laws. Yet pursuit of programs of edu- tensifies and has become even more we have a system in place today that cation.’’; vigorous. The number of voices joining raises grave questions about whether (2) by striking the items relating to sec- in to express doubt about the use of that guarantee is being met. tion 3531, 3532, and 3533 and inserting the fol- capital punishment in America is grow- While the Federal death penalty sys- lowing new items: ing. As evidence of the flaws in our sys- tem is clearly plagued by flaws, there ‘‘3531. Educational assistance. tem mounts, it has created an aware- are 38 States across our Nation that ‘‘3532. Amount of educational assistance. ness that has not escaped the attention also authorize the use of capital pun- ‘‘3533. Tutorial assistance.’’; of the American people. Layer after ishment. And like the Federal system, (3) by striking the item relating to section layer of confidence in the death pen- those systems are not free from error. 3534; and alty system has been gradually peeling Five years ago, Governor George (4) by striking the item relating to section Ryan took the historic step of placing 3541 and inserting the following new item: away, and the voices of those ques- tioning its fairness are growing louder a moratorium on executions in Illinois ‘‘3541. Special restorative training.’’. and louder. Now they can be heard and creating an independent, blue rib- (f) EFFECTIVE DATES.—(1) Except as pro- from college campuses and courtrooms bon commission to review the State’s vided in paragraph (2), the amendments death penalty system. The Commission made by this section shall take effect on Oc- and podiums across the Nation, to the tober 1, 2001. Senate Judiciary Committee hearing conducted an extensive study of the (2) The amendments made by subsections room, to the Supreme Court. We must death penalty in Illinois and released a (a)(2)(B) and (c)(2)(G)(iii) shall take effect on not ignore them. report with 85 recommendations for re- the date of the enactment of this Act. That our modern society relies on form of the death penalty system. The (3) Notwithstanding the effective date killing as punishment is disturbing Commission concluded that the death under paragraph (1) of the amendment to enough. Even more disturbing, how- penalty system is not fair, and that the section 3564 of title 38, United States Code, ever, is that our States’ and Federal risk of executing the innocent is made by subsection (c)(2)(E), the Secretary Government’s use of the death penalty alarmingly real. Governor Ryan later of Veterans Affairs shall make the first in- crease in the aggregate amount of edu- is often not consistent with principles pardoned four death row inmates and cational assistance under section 3532 of such of due process, fairness, and justice. commuted the sentences of all remain- title as required by such section 3564 (as so These principles are the foundation of ing Illinois death row inmates to life in amended) for fiscal year 2006. our criminal justice system. It is clear- prison before he left office in January er than ever before that we have put 2003: By Mr. FEINGOLD: innocent people on death row. In addi- Illinois is not alone. Four years ago, S. 122. A bill to abolish the death tion, statistics show that those States then Governor Parris Glendening penalty under Federal law; to the Com- that have the death penalty are more learned of suspected racial disparities mittee on the Judiciary. likely to put people to death for killing in the administration of the death pen- Mr. FEINGOLD. Mr. President, today white victims than for killing black alty in Maryland. Governor Glendening I introduce the Federal Death Penalty victims. did not look the other way. He commis- Abolition Act of 2005. This bill would After the death penalty was rein- sioned the University of Maryland to abolish the death penalty at the Fed- stated by the Supreme Court in 1976, conduct the most exhaustive study of eral level. It would put an immediate the Federal Government first resumed Maryland’s application of the death halt to executions and forbid the impo- death penalty prosecutions after enact- penalty in history. Then faced with the sition of the death penalty as a sen- ment of a 1988 Federal law that pro- rapid approach of a scheduled execu- tence for violations of Federal law. vided for the death penalty for murder tion, Governor Glendening acknowl- Since 1976, when the death penalty in the course of a drug-kingpin con- edged that it was unacceptable to allow was reinstated by the Supreme Court, spiracy. The Federal death penalty was executions to take place while the there have been almost 1,000 executions then expanded significantly in 1994, study he had ordered was not yet com- across the country, including three at when the omnibus crime bill allowed plete. So, in May 2002, he placed a mor- the Federal level. At the same time, its use to apply to a total of some 60 atorium on executions. Unfortunately, over 100 people on death row were later Federal offenses. Since 1994, Federal Governor Bob Ehrlich later lifted that found innocent and released from death prosecutions seeking the death penalty moratorium and executions have re- row. Exonerated inmates are not only have now accelerated. sumed in Maryland. removed from death row, but they are A survey on the Federal death pen- The Maryland study was released in usually released from prison alto- alty system from 1988 to early 2000 was January 2003, and the findings should gether. Apparently, these people never released by the U.S. Department of startle us all. The study found that should have been convicted in the first Justice in September 2000. That report blacks accused of killing whites are

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00207 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S314 CONGRESSIONAL RECORD — SENATE January 24, 2005 simply more likely to receive a death those nations that use the death pen- also call on each State that authorizes sentence than blacks who kill blacks, alty. In fact, it passed a resolution the use of the death penalty to cease or than white killers. According to the calling for the immediate and uncondi- this practice. Let us step away from report, black offenders who kill whites tional global abolition of the death the culture of violence and restore fair- are four times as likely to be sentenced penalty, and it specifically called on ness and integrity to our criminal jus- to death as blacks who kill blacks, and all States within the United States to tice system. twice as likely to get a death sentence abolish the death penalty. This is sig- I ask unanimous consent that the as whites who kill whites. nificant because it reflects the unani- text of the bill be printed in the Maryland and Illinois are not excep- mous view of a group of nations with RECORD. tions to a rule, nor anomalies in an which the United States enjoys the There being no objection, the bill was otherwise perfect system. In fact, since closest of relationships and shares the ordered to be printed in the RECORD, as reinstatement of the modern death deepest common values. follows: penalty, 81 percent of capital cases What is even more troubling in the S. 122 across the country have involved white international context is that the Be it enacted by the Senate and House of Rep- victims, even though only 50 percent of United States is now one of only five resentatives of the United States of America in murder victims are white. Nationwide, countries that imposes the death pen- Congress assembled, more than half of the death row in- alty for crimes committed by juve- SECTION 1. SHORT TITLE. mates are African Americans or His- niles. So, while a May 2002 Gallup poll This Act may be cited as the ‘‘Federal panic Americans. found that 69 percent of Americans op- Death Penalty Abolition Act of 2005’’. There is evidence of racial dispari- pose the death penalty for those under SEC. 2. REPEAL OF FEDERAL LAWS PROVIDING ties, inadequate counsel, prosecutorial the age of 18, we are one of only five FOR THE DEATH PENALTY. misconduct, and false scientific evi- nations on this earth that puts to (a) HOMICIDE-RELATED OFFENSES.— dence in death penalty systems across death people who were under 18 years (1) MURDER RELATED TO THE SMUGGLING OF ALIENS.—Section 274(a)(1)(B)(iv) of the Immi- the country. While the research done in of age when they committed their gration and Nationality Act (8 U.S.C. Maryland and Illinois has yielded crimes. The others are Iran, the Demo- 1324(a)(1)(B)(iv)) is amended by striking shocking results, there are 36 other cratic Republic of the Congo, Nigeria, ‘‘punished by death or’’. States that authorize the use of the and Saudi Arabia. In the last decade, (2) DESTRUCTION OF AIRCRAFT, MOTOR VEHI- death penalty, most of them far more the United States has executed more CLES, OR RELATED FACILITIES RESULTING IN frequently. Twenty of the 38 States juvenile offenders than all other na- DEATH.—Section 34 of title 18, United States that authorize capital punishment tions combined. Code, is amended by striking ‘‘to the death have executed more inmates than These are countries that we often penalty or’’. (3) MURDER COMMITTED DURING A DRUG-RE- Maryland, and 14 of those States have criticize for human rights abuses. We LATED DRIVE-BY SHOOTING.—Section carried out more executions than Illi- should remove any basis for charges 36(b)(2)(A) of title 18, United States Code, is nois. So while we are closer to uncover- that human rights violations are tak- amended by striking ‘‘death or’’. ing the unthinkable truth about the ing place on our own soil by halting (4) MURDER COMMITTED AT AN AIRPORT flaws in the Maryland and Illinois the execution of people who were not SERVING INTERNATIONAL CIVIL AVIATION.—Sec- death penalty systems, there are 36 even adults when they committed the tion 37(a) of title 18, United States Code, is other States with systems that are crimes for which they were sentenced amended, in the matter following paragraph most likely plagued with the same to die. No one can reasonably argue (2), by striking ‘‘punished by death or’’. (5) CIVIL RIGHTS OFFENSES RESULTING IN flaws. And yet, the killing continues. that executing child offenders is a nor- DEATH.—Chapter 13 of title 18, United States At the beginning of 2005, I cannot mal or acceptable practice in the world Code, is amended— help but believe that our progress has community. And I do not think that we (A) in section 241, by striking ‘‘, or may be been tarnished by our Nation’s not should be proud that the United States sentenced to death’’; only continuing, but increasing use of is the world leader in the execution of (B) in section 242, by striking ‘‘, or may be the death penalty. We are a Nation child offenders. sentenced to death’’; that prides itself on the fundamental As we begin a new year and another (C) in section 245(b), by striking ‘‘, or may principles of justice, liberty, equality Congress, our society is still far from be sentenced to death’’; and and due process. We are a Nation that fully just. The continued use of the (D) in section 247(d)(1), by striking ‘‘, or may be sentenced to death’’. scrutinizes the human rights records of death penalty shames us. The penalty (6) MURDER OF A MEMBER OF CONGRESS, AN other nations. Historically, we are one is at odds with our best traditions. It is IMPORTANT EXECUTIVE OFFICIAL, ORASU- of the first nations to speak out wrong and it is immoral. The adage PREME COURT JUSTICE.—Section 351 of title against torture and killings by foreign ‘‘two wrongs do not make a right,’’ ap- 18, United States Code, is amended— governments. We should hold our own plies here in the most fundamental (A) in subsection (b)(2), by striking ‘‘death system of justice to the highest stand- way. Our Nation has long ago done or’’; and ard. away with other barbaric punishments (B) in subsection (d)(2), by striking ‘‘death Over the last few years, some promi- like whipping and cutting off the ears or’’. (7) DEATH RESULTING FROM OFFENSES IN- nent voices in our country have done of criminals. Just as our Nation did VOLVING TRANSPORTATION OF EXPLOSIVES, DE- just that. And they are not just voices away with these punishments as con- STRUCTION OF GOVERNMENT PROPERTY, OR DE- of liberals, or of the faith community. trary to our humanity and ideals, it is STRUCTION OF PROPERTY RELATED TO FOREIGN They are the voices of Justice Sandra time to abolish the death penalty as we OR INTERSTATE COMMERCE.—Section 844 of Day O’Connor, Reverend Pat Robert- seek justice in this new century. And it title 18, United States Code, is amended— son, George Will, former FBI Director is not just a matter of morality. The (A) in subsection (d), by striking ‘‘or to the William Sessions, Republican Governor continued viability of our justice sys- death penalty’’; George Ryan, and Democratic Gov- tem as a truly just system that de- (B) in subsection (f)(3), by striking ‘‘sub- ernor Parris Glendening. The voices of ject to the death penalty, or’’; serves the respect of our own people (C) in subsection (i), by striking ‘‘or to the those questioning our application of and the world requires that we do so. death penalty’’; and the death penalty are growing in num- Our Nation’s striving to remain the (D) in subsection (n), by striking ‘‘(other ber, and they are growing louder. leading defender of freedom, liberty than the penalty of death)’’. And while we examine the flaws in and equality demands that we do so. (8) MURDER COMMITTED BY USE OF A FIRE- our death penalty system, we cannot Abolishing the death penalty will not ARM DURING COMMISSION OF A CRIME OF VIO- help but note that our use of the death be an easy task. It will take patience, LENCE OR A DRUG TRAFFICKING CRIME.—Sec- penalty stands in stark contrast to the persistence, and courage. As we work tion 924(j)(1) of title 18, United States Code, majority of nations, which have abol- to move forward in a rapidly changing is amended by striking ‘‘by death or’’. ished the death penalty in law or prac- (9) GENOCIDE.—Section 1091(b)(1) of title 18, world, let us leave this archaic practice United States Code, is amended by striking tice. There are now 117 countries that behind. ‘‘death or’’. have abolished the death penalty in I ask my colleagues to join me in (10) FIRST DEGREE MURDER.—Section 1111(b) law or in practice. The European Union taking the first step in abolishing the of title 18, United States Code, is amended by denies membership in the alliance to death penalty in our great Nation. I striking ‘‘by death or’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00208 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S315 (11) MURDER BY A FEDERAL PRISONER.—Sec- (29) MURDER BY THE USE OF A WEAPON OF into law last Congress. The ‘‘Efficiency tion 1118 of title 18, United States Code, is MASS DESTRUCTION.—Section 2332a of title 18, in Government Health Care Spending amended— United States Code, is amended— Act’’ will remove language included in (A) in subsection (a), by striking ‘‘by death (A) in subsection (a), by striking ‘‘punished the Medicare Modernization Act that or’’; and by death or’’; and (B) in subsection (b), in the third undesig- (B) in subsection (b), by striking ‘‘by prohibits the Medicare program from nated paragraph— death, or’’. negotiating prescription drug prices (i) by inserting ‘‘or’’ before ‘‘an indetermi- (30) MURDER BY ACT OF TERRORISM TRAN- with manufacturers. I believe that the nate’’; and SCENDING NATIONAL BOUNDARIES.—Section Medicare prescription drug benefit does (ii) by striking ‘‘, or an unexecuted sen- 2332b(c)(1)(A) of title 18, United States Code, far too little to bring down the prices tence of death’’. is amended by striking ‘‘by death, or’’. of prescription drugs, and that there (12) MURDER OF A STATE OR LOCAL LAW EN- (31) MURDER INVOLVING TORTURE.—Section are not enough measures to keep the FORCEMENT OFFICIAL OR OTHER PERSON AIDING 2340A(a) of title 18, United States Code, is skyrocketing cost of the program in IN A FEDERAL INVESTIGATION; MURDER OF A amended by striking ‘‘punished by death or’’. STATE CORRECTIONAL OFFICER.—Section 1121 (32) MURDER RELATED TO A CONTINUING check. In fact, it actually takes away of title 18, United States Code, is amended— CRIMINAL ENTERPRISE OR RELATED MURDER OF one of the best tools the Medicare pro- (A) in subsection (a), by striking ‘‘by sen- A FEDERAL, STATE, OR LOCAL LAW ENFORCE- gram could use in bringing down pre- tence of death or’’; and MENT OFFICER.—Section 408 of the Controlled scription drug prices by denying the (B) in subsection (b)(1), by striking ‘‘or Substances Act (21 U.S.C. 848) is amended— government the ability to negotiate death’’. (A) in each of subparagraphs (A) and (B) of price discounts on behalf of Medicare (13) MURDER DURING A KIDNAPING.—Section subsection (e)(1), by striking ‘‘, or may be 1201(a) of title 18, United States Code, is beneficiaries. sentenced to death’’; My bill will allow the Federal Gov- amended by striking ‘‘death or’’. (B) by striking subsections (g) and (h) and (14) MURDER DURING A HOSTAGE-TAKING.— inserting the following: ernment to take advantage of the pur- Section 1203(a) of title 18, United States ‘‘(g) [Reserved.] chasing power of the Medicare pro- Code, is amended by striking ‘‘death or’’. ‘‘(h) [Reserved.]’’; gram, saving taxpayers’ dollars while (15) MURDER WITH THE INTENT OF PRE- (C) in subsection (j), by striking ‘‘and as to reducing the costs of prescription drugs VENTING TESTIMONY BY A WITNESS, VICTIM, OR appropriateness in that case of imposing a for Medicare beneficiaries. We need to INFORMANT.—Section 1512(a)(2)(A) of title 18, sentence of death’’; act now to fix the flaws included in the United States Code, is amended by striking (D) in subsection (k), by striking ‘‘, other ‘‘the death penalty or’’. Medicare prescription drug benefit, be- than death,’’ and all that follows before the fore the benefit begins next year. (16) MAILING OF INJURIOUS ARTICLES WITH period at the end and inserting ‘‘authorized INTENT TO KILL OR RESULTING IN DEATH.—Sec- by law’’; and Mr. President, I ask unanimous con- tion 1716(i) of title 18, United States Code, is (E) by striking subsections (l) and (m) and sent that the bill be printed in the amended by striking ‘‘to the death penalty inserting the following: RECORD. or’’. ‘‘(l) [Reserved.] There being no objection, the bill was (17) ASSASSINATION OR KIDNAPING RESULT- ‘‘(m) [Reserved.]’’. ordered to be printed in the RECORD, as ING IN THE DEATH OF THE PRESIDENT OR VICE (33) DEATH RESULTING FROM AIRCRAFT HI- PRESIDENT.—Section 1751 of title 18, United follows: JACKING.—Section 46502 of title 49, United States Code, is amended— S. 123 States Code, is amended— (A) in subsection (b)(2), by striking ‘‘death (A) in subsection (a)(2), by striking ‘‘put to Be it enacted by the Senate and House of Rep- or’’; and death or’’; and resentatives of the United States of America in (B) in subsection (d)(2), by striking ‘‘death (B) in subsection (b)(1)(B), by striking ‘‘put Congress assembled, or’’. to death or’’. SECTION 1. SHORT TITLE. (18) MURDER FOR HIRE.—Section 1958(a) of (b) NON-HOMICIDE RELATED OFFENSES.— title 18, United States Code, is amended by This Act may be cited as the ‘‘Efficiency in (1) ESPIONAGE.—Section 794(a) of title 18, striking ‘‘death or’’. Government Health Care Spending Act’’. United States Code, is amended by striking (19) MURDER INVOLVED IN A RACKETEERING SEC. 2. FINDINGS. ‘‘punished by death or’’ and all that follows OFFENSE.—Section 1959(a)(1) of title 18, Congress makes the following findings: United States Code, is amended by striking before the period and inserting ‘‘imprisoned (1) Prohibiting the Federal Government ‘‘death or’’. for any term of years or for life’’. from negotiating prescription drug prices (2) TREASON.—Section 2381 of title 18, (20) WILLFUL WRECKING OF A TRAIN RESULT- with manufacturers fails to take advantage United States Code, is amended by striking ING IN DEATH.—Section 1992(b) of title 18, of the purchasing power of the Medicare pro- United States Code, is amended by striking ‘‘shall suffer death, or’’. gram. ‘‘to the death penalty or’’. (c) REPEAL OF CRIMINAL PROCEDURES RE- (2) Negotiating prescription drug prices LATING TO MPOSITION OF EATH ENTENCE (21) BANK ROBBERY-RELATED MURDER OR I D S .— can reduce the costs of prescription drugs for KIDNAPING.—Section 2113(e) of title 18, United (1) IN GENERAL.—Chapter 228 of title 18, both the Medicare program and taxpayers. States Code, is amended by striking ‘‘death United States Code, is repealed. (3) A 2002 study by the inspector general of or’’. (2) TECHNICAL AND CONFORMING AMEND- the Department of Health and Human Serv- (22) MURDER RELATED TO A CARJACKING.— MENT.—The table of chapters for part II of ices found that— Section 2119(3) of title 18, United States title 18, United States Code, is amended by (A) both the Medicare program and the Code, is amended by striking ‘‘, or sentenced striking the item relating to chapter 228. beneficiaries of the Medicare program con- to death’’. SEC. 3. PROHIBITION ON IMPOSITION OF DEATH tinually pay too much for medical equip- (23) MURDER RELATED TO AGGRAVATED CHILD SENTENCE. ment and medical supplies; and SEXUAL ABUSE.—Section 2241(c) of title 18, (a) IN GENERAL.—Notwithstanding any (B) if the Medicare program paid the same United States Code, is amended by striking other provision of law, no person may be sen- prices for 16 health care supplies as the De- ‘‘unless the death penalty is imposed,’’. tenced to death or put to death on or after partment of Veterans Affairs, which directly (24) MURDER RELATED TO SEXUAL ABUSE.— the date of enactment of this Act for any negotiates prices with manufacturers, pays Section 2245 of title 18, United States Code, violation of Federal law . for those supplies, the Federal Government is amended by striking ‘‘punished by death (b) PERSONS SENTENCED BEFORE DATE OF could save $958,000,000 each year. or’’. ENACTMENT.—Notwithstanding any other SEC. 3. SENSE OF THE SENATE REGARDING THE (25) MURDER RELATED TO SEXUAL EXPLOI- provision of law, any person sentenced to USE OF AUTHORITY TO NEGOTIATE TATION OF CHILDREN.—Section 2251(d) of title death before the date of enactment of this PRICES FOR MEDICARE PRESCRIP- 18, United States Code, is amended by strik- Act for any violation of Federal law shall TION DRUGS. ing ‘‘punished by death or’’. serve a sentence of life imprisonment with- It is the sense of the Senate that the Sec- (26) MURDER COMMITTED DURING AN OFFENSE out the possibility of parole. retary of Health and Human Services should AGAINST MARITIME NAVIGATION.—Section exercise the authority under section 1860D– 2280(a)(1) of title 18, United States Code, is By Mr. FEINGOLD: 11(i)(1) of the Social Security Act (42 U.S.C. amended by striking ‘‘punished by death or’’. S. 123. A bill to amend part D of title 1395w–111(i)(1)), as amended by section 4, so (27) MURDER COMMITTED DURING AN OFFENSE XVIII of the Social Security Act to as to assure an affordable medicare drug ben- AGAINST A MARITIME FIXED PLATFORM.—Sec- provide for negotiation of fair prices efit for medicare beneficiaries and taxpayers. tion 2281(a)(1) of title 18, United States Code, for Medicare prescription drugs; to the SEC. 4. NEGOTIATING FAIR PRICES FOR MEDI- is amended by striking ‘‘punished by death Committee on Finance. CARE PRESCRIPTION DRUGS. or’’. (a) NEGOTIATION.—Section 1860D–11 of the (28) TERRORIST MURDER OF A UNITED STATES Mr. FEINGOLD. Mr. President, today Social Security Act (42 U.S.C. 1395w–111) is NATIONAL IN ANOTHER COUNTRY.—Section I am introducing a bill that will fix one amended by striking subsection (i) (relating 2332(a)(1) of title 18, United States Code, is of the fundamental flaws of the Medi- to noninterference) and by inserting the fol- amended by striking ‘‘death or’’. care prescription drug benefit signed lowing:

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00209 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S316 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(i) AUTHORITY TO NEGOTIATE; NO NA- deficit and to more efficiently use taxpayer lege of Law, he founded his own law TIONAL FORMULARY.— dollars in health care spending. practice in 1967, and was elected to the ‘‘(1) AUTHORITY TO NEGOTIATE PRICES WITH (b) REPEAL OF MA REGIONAL PLAN STA- Sacramento City Council in 1971. After BILIZATION FUND.—Section 1858 of the Social MANUFACTURERS.—In order to ensure that winning reelection in 1975 he became beneficiaries enrolled under prescription Security Act (42 U.S.C. 1395w–27a) is amend- drug plans and MA–PD plans pay the lowest ed— vice mayor of Sacramento in 1977. Con- possible price, the Secretary shall have au- (1) by striking subsection (e); gressman Matsui is survived by his thority similar to that of other Federal enti- (2) by redesignating subsections (f), (g), and wife, Doris Matsui, their son Brian and ties that purchase prescription drugs in bulk (h) as subsections (e), (f), and (g), respec- his wife Amy, and granddaughter, to negotiate contracts with manufacturers of tively; and Anna. covered part D drugs, consistent with the re- (3) in subsection (e), as so redesignated, by quirements and in furtherance of the goals of striking ‘‘subject to subsection (e),’’. By Mr. INOUYE: providing quality care and containing costs (c) CONFORMING AMENDMENT.—Section S. 127. A bill to amend chapter 81 of under this part. 1851(i)(2) of the Social Security Act (42 U.S.C. title 5, United States Code, to author- ‘‘(2) NO NATIONAL FORMULARY.—In order to 1395w–21(i)(2)), as amended by section ize the use of clinical social workers to promote competition under this part and in 221(d)(5) of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, conduct evaluations to determine carrying out this part, the Secretary may work-related emotional and mental ill- not require a particular formulary for cov- is amended by striking ‘‘1858(h)’’ and insert- ered part D drugs.’’. ing ‘‘1858(g)’’. nesses; to the Committee on Homeland (d) EFFECTIVE DATE.—The amendments (b) EFFECTIVE DATE.—The amendment Security and Governmental Affairs. made by this section shall take effect as if made by this section shall take effect as if Mr. INOUYE. Mr. President, today I included in the enactment of section 101(a) of included in the enactment of the Medicare introduce the Clinical Social Workers’ Prescription Drug, Improvement, and Mod- the Medicare Prescription Drug, Improve- Recognition Act to correct a con- ernization Act of 2003 (Public Law 108–173). ment, and Modernization Act of 2003 (Public tinuing problem in the Federal Em- Law 108–173; 117 Stat. 2071). By Mrs. BOXER (for herself, Mrs. ployees Compensation Act. This bill FEINSTEIN and Mr. DURBIN): will also provide clinical social work- By Mr. FEINGOLD: ers the recognition they deserve as S. 124. A bill to amend title XVIII of S. 125. A bill to designate the United States courthouse located at 501 I independent providers of quality men- the Social Security Act to repeal the tal health care services. MA Regional Plan Stabilization Fund; Street in Sacramento, California, as the ‘‘Robert T. Matsui United States Clinical social workers are author- to the Committee on Finance. Courthouse’’; to the Committee on En- ized to independently diagnose and Mr. FEINGOLD. Mr. President, today vironment and Public Works. treat mental illnesses through public I am introducing a bill that will re- Mrs. BOXER. Mr. President, I am in- and private health insurance plans move the multi-billion dollar ‘‘sta- troducing legislation today to name across the nation. However, Title V of bilization fund’’ from the new Medicare the courthouse in Sacramento, Cali- the United States Code, does not per- prescription drug benefit. This sta- fornia, as the ‘‘Robert T. Matsui mit the use of mental health evalua- bilization fund is in essence a slush United States Courthouse.’’ I am tions conducted by clinical social fund that gives billions of dollars to pleased to be joined in this effort by workers for use as evidence in deter- private insurance companies. This is Senators FEINSTEIN and DURBIN. mining workers’ compensation claims not an efficient use of taxpayers’ dol- Congressman Matsui’s death on Jan- brought by federal employees. The bill lars. In fact, it’s not clear why it’s even uary 1, 2005 was shocking to all of us. I am introducing corrects this problem. necessary. If private managed care Naming the Federal Courthouse in Sac- It is a sad irony that Federal employ- plans are successful in bringing costs ramento in his honor would be a very ees may select a clinical social worker down, as backers of the new Medicare appropriate memorial to his continual through their health plans to provide bill expect, and if seniors supposedly efforts toward a just and fair society. mental health services, but may not go want to choose private plans, as back- After his childhood internment, Bob to this same professional for workers’ ers of the new Medicare bill believe, Matsui could have chosen to dwell on compensation evaluations. The failure then why should American taxpayers the sadness of his early years. Instead, to recognize the validity of evaluations pay private companies more money to he chose to give his life to public serv- provided by clinical social workers un- get more people to enroll in them? ice, working to improve the lives of necessarily limits federal employees’ We should not be subsidizing private those in his congressional district and selection of a provider to conduct the health insurance companies in the all Americans. He was a true patriot. workers’ compensation mental health name of Medicare reform. It is fiscally He was first elected to Congress in evaluations. Lack of this recognition irresponsible, in a time of record defi- 1978, and spent the past 26 years rep- may well impose an undue burden on cits, to use taxpayers’ dollars as a give- resenting the citizens of Sacramento federal employees where clinical social away to private insurance companies. with distinction and pride. He served as workers are the only available pro- By removing this multi-billion slush a senior member of the Committee on viders of mental health care. fund, my bill will save the American Ways and Means, and took a particular I ask unanimous consent that the taxpayers $10 billion. Many analysts, interest in complex public policy issues text of this bill be printed in the including the Administration’s ana- including tax, international trade, so- RECORD. lysts, predict that the new Medicare cial security, healthcare, and welfare There being no objection, the bill was prescription drug benefit will far sur- reform. ordered to be printed in the RECORD, as pass the $400 billion budgeted for it. We Congressman Matsui’s dedication to follows: need to look carefully at how we spend the well-being of America’s children S. 127 Medicare dollars, so that we can ensure earned him the Congressional Advocate Be it enacted by the Senate and House of Rep- that the program remains solvent for of the Year award from The Child Wel- resentatives of the United States of America in Congress assembled, future generations. fare League of America in 1992 and 1994. SECTION 1. SHORT TITLE. I ask unanimous consent that the The Congressman was also honored with the Anti Defamation League’s This Act may be cited as the ‘‘Clinical So- text of the bill be printed in the cial Workers’ Recognition Act of 2005’’. Lifetime Achievement Award for his RECORD. SEC. 2. EXAMINATIONS BY CLINICAL SOCIAL There being no objection, the bill was commitment to human rights. WORKERS FOR FEDERAL WORKER ordered to be printed in the RECORD, as Included in Congressman Matsui’s COMPENSATION CLAIMS. follows: long list of legislative achievements Section 8101 of title 5, United States Code, is amended— S. 124 were his accomplishments to benefit the people of his district including (1) in paragraph (2), by striking ‘‘and osteo- Be it enacted by the Senate and House of Rep- flood control, transportation, and his pathic practitioners’’ and inserting ‘‘osteo- resentatives of the United States of America in pathic practitioners, and clinical social Congress assembled, success in obtaining $142 million in fed- workers’’; and SECTION 1. REPEAL OF MA REGIONAL PLAN STA- eral funding for the courthouse in Sac- (2) in paragraph (3), by striking ‘‘osteo- BILIZATION FUND. ramento. pathic practitioners’’ and inserting ‘‘osteo- (a) PURPOSE OF SECTION.—The purpose of A graduate of the University of Cali- pathic practitioners, clinical social work- this section is to reduce the Federal budget fornia at Berkeley and Hastings Col- ers,’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00210 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S317 By Mrs. BOXER (for herself and wilderness character due to activities line vehicles, or achieve a substantial Mrs. FEINSTEIN): such as logging and mining. As our increase in lifetime fuel savings rel- S. 128. A bill to designate certain population increases, and California ative to comparable gasoline vehicles. public land in Humboldt, Del Norte, becomes home to almost 50 million It creates a minimum standard of im- Mendocino, Lake, and Napa Counties in people by the middle of the century, provement necessary for hybrids, but the State of California as wilderness, development pressures threaten our re- gives States the option of increasing to designate certain segments of the maining wild places. We must protect the requirements. This bill also allows Black Butte River in Mendocino Coun- our precious wild lands and wild rivers States to open HOV lanes to single oc- ty, California as a wild or scenic river, before they are lost forever. cupancy advanced lean burn vehicles and for other purposes; to the Com- Mr. President, those of us who live in that achieve at least a 25 percent in- mittee on Energy and Natural Re- the United States have a very special crease in fuel economy relative to com- sources. responsibility to protect our natural parable gasoline vehicles and that are Mrs. BOXER. Mr. President, I am in- heritage. With this legislation, we are certified to Clean Air Act Tier 2 stand- troducing a bill today that will protect one step closer to protecting this leg- ards. hundreds of thousands of acres of wil- acy for our children’s children, and I am hopeful that my colleagues on derness in Northern California. The their children. both sides of the aisle can agree that Northern California Coastal Wild Her- we should do all we can to encourage itage Wilderness Act would designate By Mr. TALENT: the use of renewable energy in our over 300,000 acres in 14 areas as wilder- S. 129. A bill to amend title 23, country, and hybrid vehicles are an im- ness and would protect 21 miles of the United States Code, to provide for HOV portant part of that. The people who Black Butte Creek as wild and scenic. facilities; to the Committee on Envi- drive these vehicles are doing their The Senate passed this legislation dur- ronment and Public Works. part to help clean up the air and in- ing the 108th Congress, and I am hope- Mr. TALENT. Mr. President, I am crease energy conservation, and we ful this year that the bill will become pleased to be introducing this bill, should give more people an incentive law. which will allow more owners of hybrid to buy these vehicles by giving them California’s natural treasures have electric vehicles, or HEVs, to have ac- access to HOV lanes. always been one of the things that cess to HOV lanes on Federal high- make California unique, drawing mil- I ask unanimous consent that the ways. For all of us who have a desire to text of the bill be printed in the lions of people to them over the years lessen our dependence on foreign oil to revel in their wild beauty. But that RECORD. and encourage the use of renewable en- There being no objection, the bill was beauty must not be taken for granted. ergy, this bill represents a step forward It is important that we move now to ordered to be printed in the RECORD, as towards achieving those goals. follows: designate these special places in Cali- The language that is currently in the S. 129 fornia as wilderness to protect them highway bills passed by the House and for the enjoyment of future genera- the Senate allows hybrid vehicles that Be it enacted by the Senate and House of Rep- tions. resentatives of the United States of America in achieve a 45 mile-per-gallon fuel econ- Congress assembled, That is why I introduced the state- omy highway rating to use HOV lanes. SECTION 1. HOV FACILITIES. wide California Wild Heritage Act dur- Any hybrid that achieves that kind of ing the 107th Congress and the 108th (a) IN GENERAL.—Subchapter I of chapter 1 fuel economy certainly deserves to get of title 23, United States Code, is amended by Congress, and I will soon be reintro- that status, because it is a very im- ducing it. The California Wild Heritage adding at the end the following: pressive fuel economy rating and rep- ‘‘§ 165. HOV facilities Act would protect more than 2.5 mil- resents a substantial improvement ‘‘(a) DEFINITIONS.—In this section: lion acres of public land throughout over non-hybrid vehicles. What the 45 the state of California, as well as the ‘‘(1) DEDICATED ALTERNATIVE FUEL VEHI- mile-per-gallon standard fails to take free-flowing portions of 23 rivers. Every CLE.—The term ‘dedicated alternative fuel into account, however, is that many vehicle’ means a vehicle that operates solely acre of wild land is a treasure, but the larger hybrid vehicles achieve a much on— areas protected in this bill are some of larger fuel economy improvement over ‘‘(A) methanol, denatured ethanol, or other California’s most precious. alcohols; I am pleased to join Representative their internal combustion engine coun- terparts, and thus save more energy, ‘‘(B) a mixture containing at least 85 per- Mike Thompson of California in intro- cent of methanol, denatured ethanol, or ducing this legislation, which protect than smaller vehicles which manage to other alcohols by volume with gasoline or those portions of my statewide bill meet the standard but are a less dras- other fuels; that are located in California’s First tic improvement over their non-hybrid ‘‘(C) natural gas; Congressional District. The areas pro- counterparts. ‘‘(D) liquefied petroleum gas; tected under this legislation are some To illustrate this, take the 2005 ‘‘(E) hydrogen; ‘‘(F) coal derived liquid fuels; of the most magnificent wild places in model Honda Civic HEV, which gets just over 45 miles-per-gallon. This rep- ‘‘(G) fuels (except alcohol) derived from bi- our state. For example, in south- ological materials; western Humboldt and northwestern resents less than a 40 percent improve- ment over the comparable internal ‘‘(H) electricity, including electricity from Mendocino counties, over 42,000 acres solar energy; or of the King Range will be protected as combustion model. The 2005 Ford Es- ‘‘(I) any other fuel that the Secretary pre- wilderness. This is the wildest portion cape HEV, on the other hand, is a scribes by regulation that is not substan- of the California coast, boasting the truck, so it gets fewer miles per gallon tially petroleum and that would yield sub- longest stretch of undeveloped coast- than a Civic, between 35 and 40. How- stantial energy security and environmental line in the United States outside of ever, this is a 75 percent improvement benefits. over its internal combustion engine ‘‘(2) HOV FACILITY.—The term ‘HOV facil- Alaska. ity’ means a high occupancy vehicle facility. This bill will protect watersheds that counterpart, and in addition, the Es- cape HEV emits 3–4 tons fewer green- ‘‘(3) LOW-EMISSION AND ENERGY-EFFICIENT provide clean water to our cities and VEHICLE.—The term ‘low-emission and en- farms. This bill would also protect the house gases every year than the non- ergy-efficient vehicle’ means a vehicle that— precious plant and animal species that hybrid. ‘‘(A) has been certified by the Adminis- make their homes in these areas. En- There is no reason to discriminate trator of the Environmental Protection dangered and threatened species whose against these larger, American-made Agency as meeting the Tier II emission level habitats will be protected by this bill hybrids like the Ford Escape. They are established in regulations prescribed by the include the bald eagle, California truly engineering marvels and are so Administrator under section 202(i) of the brown pelican, steelhead trout, coho clearly beneficial for the environment. Clean Air Act (42 U.S.C. 7521(i)) for that The bill that I have sponsored will give make and model year vehicle; and salmon, bald eagle, peregrine falcon, ‘‘(B)(i) has propulsion energy drawn from northern spotted owl, and Roosevelt States the discretion to open up their onboard hybrid sources of stored energy that elk. HOV lanes to hybrid vehicles that are— During the last 20 years, 675,000 acres achieve a substantial increase in fuel ‘‘(I) an internal combustion or heat engine of unprotected wilderness lost their economy relative to comparable gaso- using consumable fuel;

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‘‘(II) a rechargeable energy storage system; ‘‘(2) PUBLIC TRANSPORTATION VEHICLES.— (3) and (4) of subsection (c), subject to the re- and The State agency may allow public transpor- quirements of section 129. ‘‘(III) certified by the manufacturer to tation vehicles to use the HOV facility if the ‘‘(2) HOV FACILITIES ON THE INTERSTATE have achieved either a 10 percent or more in- agency— SYSTEM.—Notwithstanding section 129, tolls crease in city fuel economy relative to a ‘‘(A) establishes requirements for clearly may be charged under paragraphs (3) and (4) comparable vehicle that is an internal com- identifying the vehicles; and of subsection (c) on a HOV facility on the bustion gasoline fueled vehicle (other than a ‘‘(B) establishes procedures for enforcing Interstate System. vehicle that has propulsion energy from such the restrictions on the use of the facility by ‘‘(3) EXCESS TOLL REVENUES.—If a State onboard hybrid sources), or a 10 percent or the vehicles. agency makes a certification under the last more vehicle increase in lifetime fuel savings ‘‘(3) HIGH OCCUPANCY TOLL VEHICLES.—The sentence of section 129(a)(3) concerning toll relative to a comparable vehicle, determined State agency may allow vehicles that are revenues collected under paragraphs (3) and in accordance with guidelines prescribed by not otherwise exempt under this subsection (4) of subsection (c), the State shall give pri- the Administrator of the Environmental to use the HOV facility if— ority consideration to projects that develop Protection Agency not later than 180 days ‘‘(A) the operators of the vehicles pay a alternatives to single occupancy vehicle after the date of enactment of this section, toll charged by the agency for use of the fa- travel or improve highway safety in the use specifying procedures and methods for calcu- cility; and of toll revenues under that sentence. lating either increase and making the com- ‘‘(B) the agency— ‘‘(e) HOV FACILITY MANAGEMENT, OPER- parison, except that the State agency re- ‘‘(i) establishes a program that addresses ATION, MONITORING, AND ENFORCEMENT.— ferred to in this section may, subject to the how motorists can enroll and participate in ‘‘(1) IN GENERAL.—A State agency that al- guidelines, increase in combination the per- the toll program; lows low-emission and energy-efficient vehi- centage under this subclause in furtherance ‘‘(ii) develops, manages, and maintains a cles to use a HOV facility under subsection of its responsibilities with respect to a HOV system that will automatically collect the (c)(4) in a fiscal year shall certify to the Sec- facility specified in subsection (e); or toll; and retary that the agency will carry out the fol- ‘‘(ii) is a dedicated alternative fuel vehicle. ‘‘(iii) establishes policies and procedures lowing responsibilities with respect to the ‘‘(4) PUBLIC TRANSPORTATION VEHICLE.—The to— facility in the fiscal year: term ‘public transportation vehicle’ means a ‘‘(I) manage the demand to use the facility ‘‘(A) Establish, manage, and support a per- vehicle that provides public transportation by varying the toll amount that is charged; formance-monitoring, evaluation, and re- (as defined in section 5302(a) of title 49). ‘‘(II) enforce violations of use of the facil- porting program for the facility that pro- ‘‘(5) STATE AGENCY.—The term ‘State agen- ity; and vides for continuous monitoring, assessment, cy’, as used with respect to a HOV facility, ‘‘(III) permit low-income individuals to pay and reporting on the effects that low-emis- means an agency of a State or local govern- reduced tolls. sion and energy-efficient vehicles may have ment (including a State transportation de- ‘‘(4) LOW-EMISSION AND ENERGY-EFFICIENT on the operation of the facility and adjacent partment) having jurisdiction over the oper- VEHICLES.— highways. ation of the facility. ‘‘(A) INHERENTLY LOW-EMISSION VEHICLES.— ‘‘(B) Establish, manage, and support an en- ‘‘(6) ADVANCED LEAN BURN TECHNOLOGY VE- Before September 30, 2009, the State agency forcement program that ensures that the fa- HICLE.—The term ‘advanced lean burn tech- may allow vehicles that are certified and la- cility is operated in accordance with this nology vehicle’ means a vehicle with an in- beled as inherently low-emission vehicles section. ternal combustion engine that— under section 88.311-93 of title 40, Code of ‘‘(C) Limit or discontinue the use of the fa- ‘‘(A) is designed to operate primarily using Federal Regulations, to use the HOV facility cility by low-emission and energy-efficient more air than is necessary for complete com- if the agency establishes procedures for en- vehicles if the presence of the vehicles has bustion of fuel; forcing restrictions on the use of the facility degraded the operation of the facility. ‘‘(B) incorporates direct injection; by the vehicles. ‘‘(2) MINIMUM AVERAGE OPERATING SPEED; ‘‘(B) OTHER LOW-EMISSION AND ENERGY-EFFI- ‘‘(C) achieves at least 125 percent of city DEGRADED FACILITY.— CIENT VEHICLES.—Before September 30, 2009, fuel economy of a comparable vehicle; and ‘‘(A) MINIMUM AVERAGE OPERATING SPEED the State agency may allow vehicles that are ‘‘(D) has received a certificate that the ve- DEFINED.—In this paragraph, the term ‘min- hicle meets or exceeds— certified as and labeled low-emission and en- imum average operating speed’ means— ‘‘(i) in the case of a vehicle having a gross ergy-efficient vehicles under subsection (f) to ‘‘(i) 45 miles per hour, in the case of a HOV use the HOV facility if the agency— vehicle weight rating of 6000 pounds or less, facility with a speed limit of 50 miles per ‘‘(i) establishes a program that addresses the Bin 5 II emission standard established by hour or greater; and how the vehicles are selected and certified; regulations under section 202(i) of the Clean ‘‘(ii) not more than 10 miles per hour below ‘‘(ii) establishes requirements for labeling Air Act (42 U.S.C. 7521(i)); and the speed limit, in the case of a HOV facility the vehicles and procedures for enforcing ‘‘(ii) in the case of a vehicle having a gross with a speed limit of less than 50 miles per those requirements; vehicle weight rating of more than 6,000 hour. ‘‘(iii) continuously monitors, evaluates, pounds but not more than 8,500 pounds, the ‘‘(B) STANDARD FOR DETERMINING DEGRADA- and reports to the Secretary on the perform- Bin 8 Tier II emission standard established TION.—For purposes of paragraph (1), the op- ance of the vehicles; and by regulations under section 202(i) of the eration of a HOV facility shall be considered ‘‘(iv) imposes on the use of the HOV facil- Clean Air Act (42 U.S.C. 7521(i)). to be degraded if vehicles operating on the ity by vehicles that do not satisfy estab- ‘‘(b) IN GENERAL.— facility fail to maintain a minimum average lished occupancy requirements any restric- ‘‘(1) AUTHORITY OF STATE AGENCIES.—A operating speed 90 percent of the time over a tions that are necessary to ensure that nei- State agency that has jurisdiction over the consecutive 180-day period during morning or ther the performance of an individual HOV operation of a HOV facility shall establish evening weekday peak hour periods. facility nor the HOV facility system are seri- the occupancy requirements of vehicles oper- ‘‘(f) CERTIFICATION AND LABELING OF LOW- ating on the facility. ously degraded. EMISSION AND ENERGY-EFFICIENT VEHICLES ‘‘(2) OCCUPANCY REQUIREMENT.—Except as ‘‘(5) ADVANCED LEAN BURN TECHNOLOGY VE- AND ADVANCED LEAN BURN TECHNOLOGY VEHI- otherwise provided by this section, not fewer HICLES.—Before September 30, 2009, the State CLES.—Not later than 180 days after the date than 2 occupants per vehicle may be required agency may allow vehicles that are certified of enactment of this section, the Adminis- for use of a HOV facility. and labeled as advanced lean burn tech- trator of the Environmental Protection ‘‘(c) EXCEPTIONS TO OCCUPANCY REQUIRE- nology vehicles under subsection (f) to use Agency shall promulgate a final rule estab- MENT.—Notwithstanding the occupancy re- the HOV facility if the agency— lishing requirements for— quirements of subsection (b)(2), the following ‘‘(A) establishes a program that address ‘‘(1) certification of vehicles— exceptions shall apply with respect to a how the vehicles are selected and certified; ‘‘(A) as low-emission and energy-efficient State agency operating a HOV facility: ‘‘(B) establishes requirements for labeling vehicles; and ‘‘(1) MOTORCYCLES AND BICYCLES.— the vehicles and procedures for enforcing ‘‘(B) as advance lean burn technology vehi- ‘‘(A) IN GENERAL.—Subject to subparagraph those requirements; cles; and (B), the State agency shall allow motor- ‘‘(C) continuously monitors, evaluates, and ‘‘(2) labeling of the vehicles certified under cycles and bicycles to use the HOV facility. reports to the Secretary on the performance paragraph (1).’’. ‘‘(B) SAFETY EXCEPTION.— of the vehicles; and (b) TECHNICAL AMENDMENT.—Section 102(c) ‘‘(i) IN GENERAL.—A State agency may re- ‘‘(D) imposes on the use of HOV facilities of title 23, United States Code, is amended by strict use of the HOV facility by motorcycles by vehicles that do not satisfy established striking from ‘‘10 years’’ through ‘‘after’’ and or bicycles if the agency certifies to the Sec- occupancy requirements any restrictions inserting ‘‘10 years (or any longer period retary that such use would create a safety that are necessary to ensure that neither the that the State requests and the Secretary hazard and the Secretary accepts the certifi- performance of individual HOV facilities nor determines to be reasonable) after’’. cation. the HOV facility system are seriously de- (c) CONFORMING AMENDMENTS.— ‘‘(ii) NOTICE.—The Secretary may accept a graded. (1) PROGRAM EFFICIENCIES.—Section 102 of certification under clause (i) only after the ‘‘(d) REQUIREMENTS APPLICABLE TO title 23, United States Code, is amended by Secretary publishes notice of the certifi- TOLLS.— striking subsection (a) and redesignating cation in the Federal Register and provides ‘‘(1) IN GENERAL.—Notwithstanding section subsections (b) and (c) as subsections (a) and an opportunity for public comment. 301, tolls may be charged under paragraphs (b), respectively.

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(2) CHAPTER ANALYSIS.—The analysis for ‘‘Sec. 412. Allowance allocation. ‘‘TITLE IV—EMISSION REDUCTION subchapter I of chapter 1 of title 23, United ‘‘Sec. 413. Phase I sulfur dioxide require- PROGRAMS States Code, is amended by adding at the end ments. ‘‘PART A—GENERAL PROVISIONS the following: ‘‘Sec. 414. Phase II sulfur dioxide re- ‘‘SEC. 401. (Reserved) quirements. ‘‘SEC. 402. DEFINITIONS. ‘‘Sec. 415. Allowances for States with ‘‘165. HOV facilities.’’. ‘‘In this title: emissions rates at or below 0.80 ‘‘(1) AFFECTED EGU.—The term ‘affected lbs/mmBtu. By Mr. HAGEL (for himself and EGU’ shall have the meaning set forth in ‘‘Sec. 416. Election for additional section 421, 430, 451, or 471, as appropriate. Mr. NELSON of Nebraska): sources. S. 130. A bill to authorize an addi- ‘‘Sec. 417. Auctions, reserve. ‘‘(2) AFFECTED FACILITY.—The term ‘af- tional district judgeship for the dis- ‘‘Sec. 418. Industrial sulfur dioxide emis- fected facility’ or ‘affected source’ means a trict of Nebraska; to the Committee on sions. facility or source that includes one or more the Judiciary. ‘‘Sec. 419. Termination. affected units. ‘‘SUBPART 2—CLEAR SKIES SULFUR DIOXIDE ‘‘(3) AFFECTED UNIT.—The term ‘affected Mr. HAGEL. Mr. President, I ask unit’ means— unanimous consent that the text of the ALLOWANCE PROGRAM ‘‘Sec. 421. Definitions. ‘‘(A) under this part, a unit that is subject bill be printed in the RECORD. ‘‘Sec. 422. Applicability. to emission reduction requirements or limi- There being no objection, the bill was ‘‘Sec. 423. Limitations on total emis- tations under part B, C, or D or, if applica- ordered to be printed in the RECORD, as sions. ble, under a specified part or subpart; or follows: ‘‘Sec. 424. Egu allocations. ‘‘(B) under subpart 1 of part B or subpart 1 S. 130 ‘‘Sec. 425. Disposition of sulfur dioxide of part C, a unit that is subject to emission allowances allocated under sub- reduction requirements or limitations under Be it enacted by the Senate and House of Rep- part 1. that subpart. resentatives of the United States of America in ‘‘Sec. 426. Incentives for sulfur dioxide ‘‘(4) ALLOWANCE.—The term ‘allowance’ Congress assembled, emission control technology. means— SECTION 1. DISTRICT JUDGESHIP FOR THE DIS- ‘‘SUBPART 3—WESTERN REGIONAL AIR ‘‘(A) an authorization, by the Adminis- TRICT OF NEBRASKA. PARTNERSHIP trator under this title, to emit one ton of (a) IN GENERAL.—The President shall ap- ‘‘Sec. 431. Definitions. sulfur dioxide, one ton of nitrogen oxides, or point, by and with the advice and consent of ‘‘Sec. 432. Applicability. one ounce of mercury; or the Senate, 1 additional district judge for the ‘‘Sec. 433. Limitations on total emis- ‘‘(B) under subpart 1 of part B, an author- district of Nebraska. sions. ization by the Administrator under this (b) TECHNICAL AND CONFORMING AMEND- ‘‘Sec. 434. EGU allocations. title, to emit one ton of sulfur dioxide. MENT.—The table under section 133(a) of title ‘‘PART C—NITROGEN OXIDES CLEAR SKIES ‘‘(5) BASELINE HEAT INPUT.— 28, United States Code, is amended by strik- EMISSION REDUCTIONS ‘‘(A) IN GENERAL.—The term ‘baseline heat ing the item relating to Nebraska and insert- input’ means, except under subpart 1 of part ing the following: ‘‘SUBPART 1—ACID RAIN PROGRAM ‘‘Sec. 441. Nitrogen oxides emission re- B and section 407, the average annual heat ‘‘Nebraska ...... 4’’. duction program. input used by a unit during the three years ‘‘Sec. 442. Termination. in which the unit had the highest heat input By Mr. INHOFE (for himself and ‘‘SUBPART 2—CLEAR SKIES NITROGEN OXIDES for the period 1998 through 2002. Mr. VOINOVICH): ALLOWANCE PROGRAM ‘‘(B) COMMENCEMENT OF OPERATION AFTER S. 131. A bill to amend the Clean Air ‘‘Sec. 451. Definitions. JANUARY 1, 2001.—Notwithstanding subpara- Act to reduce air pollution through ex- ‘‘Sec. 452. Applicability. graph (A), if a unit commenced or com- pansion of cap and trade programs, to ‘‘Sec. 453. Limitations on total emis- mences operation after January 1, 2001, then provide an alternative regulatory clas- sions. ‘baseline heat input’ means the manufactur- sification for units subject to the cap ‘‘Sec. 454. EGU allocations. er’s design heat input capacity for the unit ‘‘Sec. 455. Nitrogen oxides early action multiplied by 80 percent for coal-fired units, and trade program; to the Committee reduction credits. 50 percent for boilers that are not coal-fired, on Environment and Public Works. ‘‘SUBPART 3—OZONE SEASON NOx BUDGET 80 percent for combustion turbine cogenera- Mr. INHOFE. Mr. President, I ask PROGRAM tion units elected under section 407, 50 per- unanimous consent that the text of the ‘‘Sec. 461. Definitions. cent for combustion turbines other than sim- bill be printed in the RECORD. ‘‘Sec. 462. General provisions. ple cycle turbines, and 5 percent for simple There being no objection, the bill was ‘‘Sec. 463. Applicable implementation cycle combustion turbines. ordered to be printed in the RECORD, as plan. ‘‘(C) HEAT INPUT DETERMINATION.—A unit’s ‘‘Sec. 464. Termination of Federal ad- follows: heat input for a year shall be the heat ministration of NOx trading input— S. 131 program for EGUs. ‘‘(i) required to be reported under section Be it enacted by the Senate and House of Rep- ‘‘Sec. 465. Carryforward of pre–2008 ni- 405 for the unit, if the unit was required to resentatives of the United States of America in trogen oxides allowances. report heat input during the year under that Congress assembled, ‘‘Sec. 466. Non-ozone season voluntary section; SECTION 1. SHORT TITLE; TABLE OF CONTENTS. action credits. ‘‘(ii) reported to the Energy Information (a) SHORT TITLE.—This Act may be cited as ‘‘PART D—MERCURY EMISSIONS REDUCTIONS Administration for the unit, if the unit was the ‘‘Clear Skies Act of 2005’’. ‘‘Sec. 471. Definitions. not required to report heat input under sec- (b) TABLE OF CONTENTS.—The table of con- ‘‘Sec. 472. Applicability. tion 405; tents of this Act is as follows: ‘‘Sec. 473. Limitations on total emis- ‘‘(iii) based on data for the unit reported to Sec. 1. Short title; table of contents. sions. the State where the unit is located as re- Sec. 2. Emission reduction programs. ‘‘Sec. 474. EGU allocations. quired by State law, if the unit was not re- ‘‘Sec. 475. Mercury early action reduc- quired to report heat input during the year ‘‘TITLE IV—EMISSION REDUCTION tion credits. PROGRAMS under section 405 and did not report to the ‘‘PART E—NATIONAL EMISSION STANDARDS; Energy Information Administration; or ‘‘PART A—GENERAL PROVISIONS RESEARCH, ENVIRONMENTAL ACCOUNT- ‘‘(iv) based on fuel use and fuel heat con- ‘‘Sec. 401. (reserved) ABILITY; MAJOR SOURCE PRECONSTRUCTION tent data for the unit from fuel purchase or ‘‘Sec. 402. Definitions. REVIEW AND BEST AVAILABLE RETROFIT use records, if the unit was not required to ‘‘Sec. 403. Allowance system. CONTROL TECHNOLOGY REQUIREMENTS report heat input during the year under sec- ‘‘Sec. 404. Permits and compliance plans. ‘‘Sec. 481. National emission standards tion 405 and did not report to the Energy In- ‘‘Sec. 405. Monitoring, reporting, and for affected units. formation Administration and the State. recordkeeping requirements. ‘‘Sec. 482. Research, environmental mon- ‘‘(D) REGULATIONS.—Not later than three ‘‘Sec. 406. Excess emissions penalty; gen- itoring, and assessment. months after the enactment of the Clear eral compliance with other pro- ‘‘Sec. 483. Major source preconstruction Skies Act of 2005, the Administrator shall visions; enforcement. review requirements and best promulgate regulations, without notice and ‘‘Sec. 407. Election for additional units. available retrofit control tech- opportunity for comment, specifying the for- ‘‘Sec. 408. Clean coal technology regu- nology requirements; applica- mat in which the information under subpara- latory incentives. bility to affected units. graphs (B)(ii) and (C)(ii), (iii), or (iv) shall be ‘‘Sec. 409. Electricity reliability. Sec. 3. Other amendments. submitted. Not later than nine months after ‘‘PART B—SULFUR DIOXIDE EMISSION SEC. 2. EMISSION REDUCTION PROGRAMS. the enactment of the Clear Skies Act of 2005, REDUCTIONS Title IV of the Clean Air Act (relating to the owner or operator of any unit under sub- ‘‘SUBPART 1—ACID RAIN PROGRAM acid deposition control) (42 U.S.C. 7651, et paragraph (B)(ii) or (C)(ii), (iii), or (iv) to ‘‘Sec. 411. Definitions. seq.) is amended to read as follows: which allowances may be allocated under

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section 424, 434, 454, or 474 shall submit to the ‘‘(16) FACILITY.—The term ‘facility’ means emit any air pollutant subject to regulations Administrator such information. The Admin- all buildings, structures, or installations lo- under the Clear Skies Act of 2005. istrator is not required to allocate allow- cated on 1 or more contiguous or adjacent ‘‘(31) STATE.—The term ‘State’ means— ances under such sections to a unit for which properties under common control of the ‘‘(A) 1 of the 48 contiguous States, Alaska, the owner or operator fails to submit infor- same person or persons. Hawaii, the District of Columbia, the Com- mation in accordance with the regulations ‘‘(17) FOSSIL FUEL.—The term ‘fossil fuel’ monwealth of Puerto Rico, the Virgin Is- promulgated under this subparagraph. means natural gas, petroleum, coal, or any lands, Guam, American Samoa, or the Com- ‘‘(6) COAL.—The term ‘coal’ means any form of solid, liquid, or gaseous fuel derived monwealth of the Northern Mariana Islands; solid fuel classified as anthracite, bitu- from such material. or minous, subbituminous, or lignite. ‘‘(18) FOSSIL FUEL-FIRED.—The term ‘fossil ‘‘(B) under subpart 1 of part B and subpart ‘‘(7) COAL-DERIVED FUEL.—The term ‘coal- fuel-fired’, with regard to a unit, means the 1 of part C, 1 of the 48 contiguous States or derived fuel’ means any fuel (whether in a combustion of fuel that is composed of at the District of Columbia. solid, liquid, or gaseous state) produced by least 10 percent fossil fuel. ‘‘(32) UNIT.—The term ‘unit’ means— the mechanical, thermal, or chemical proc- ‘‘(19) FUEL OIL.—The term ‘fuel oil’ means ‘‘(A) a fossil fuel-fired boiler, combustion essing of coal. a petroleum-based fuel, including diesel fuel turbine, or integrated gasification combined ‘‘(8) COAL-FIRED.—The term ‘coal-fired’ or petroleum derivatives. cycle plant; with regard to a unit means, except under ‘‘(20) GAS-FIRED.—The term ‘gas-fired’, ‘‘(B) under subpart 1 of part B and subpart subpart 1 of part B, subpart 1 of part C, and with regard to a unit, means, except under 1 of part C, a fossil fuel-fired combustion de- sections 424 and 434, combusting coal or any subpart 1 of part B and subpart 1 of part C, vice; and coal-derived fuel alone or in combination combusting only natural gas or fuel oil, with ‘‘(C) a stationary source that— with any amount of any other fuel in any natural gas comprising at least 90 percent, ‘‘(i) emits nitrogen oxides, sulfur dioxide, year. and fuel oil comprising no more than 10 per- mercury, or any combination of those sub- ‘‘(9) COGENERATION UNIT.—The term ‘cogen- cent, of the unit’s total heat input in any stances; and eration unit’ means, except under subpart 1 year. ‘‘(ii) is elected under section 407. of part B and subpart 1 of part C, a unit that ‘‘(21) GASIFY.—The term ‘gasify’ means to ‘‘(33) UTILITY UNIT.—The term ‘utility unit’ produces through the sequential use of en- convert carbon-containing material into a shall have the meaning set forth in section ergy— 411. ‘‘(A) electricity; and gas consisting primarily of carbon monoxide and hydrogen. ‘‘(34) YEAR.—The term ‘year’ means a cal- ‘‘(B) useful thermal energy (such as heat or endar year. steam) for industrial, commercial, heating, ‘‘(22) GENERATOR.—The term ‘generator’ or cooling purposes. means a device that produces electricity ‘‘SEC. 403. ALLOWANCE SYSTEM. LLOCATIONS ‘‘(10) COMBUSTION TURBINE.— and, under subpart 1 of part B and subpart 1 ‘‘(a) A .— ‘‘(A) IN GENERAL.—The term ‘combustion of part C, that is reported as a generating ‘‘(1) IN GENERAL.—For the emission limita- turbine’ means any combustion turbine that unit pursuant to Department of Energy tion programs under this title, the Adminis- is not self-propelled. Form 860. trator shall allocate annual allowances for ‘‘(B) INCLUSION.—The term ‘combustion ‘‘(23) HEAT INPUT.— an affected unit, to be held or distributed by turbine’ includes a simple cycle combustion ‘‘(A) IN GENERAL.—The term ‘heat input’, the designated representative of the owner turbine, a combined cycle combustion tur- with regard to a specific period of time, or operator in accordance with this title as bine and any duct burner or heat recovery means the product (in mmBtu/time) obtained follows— device used to extract heat from the combus- by multiplying— ‘‘(A) sulfur dioxide allowances in an tion turbine exhaust, and a regenerative ‘‘(i) the gross calorific value of the fuel (in amount equal to the annual tonnage emis- combustion turbine. mmBtu/lb); and sion limitation calculated under section 413, ‘‘(C) EXCLUSIONS.—The term ‘combustion ‘‘(ii) the fuel feed rate into a unit (in lb of 414, 415, or 416, except as otherwise specifi- turbine’ does not include a combined turbine fuel/time). cally provided elsewhere in subpart 1 of part in an integrated gasification combined cycle ‘‘(B) EXCLUSIONS.—The term ‘heat input’ B, or in an amount calculated under section plant. does not include the heat derived from 424 or 434; ‘‘(11) COMMENCE COMMERCIAL OPERATION.— preheated combustion air, recirculated flue ‘‘(B) nitrogen oxides allowances in an The term ‘commence commercial operation’ gases, or exhaust. amount calculated under section 454; and with regard to a unit means the start up of ‘‘(24) INTEGRATED GASIFICATION COMBINED ‘‘(C) mercury allowances in an amount cal- the unit’s combustion chamber and the com- CYCLE PLANT.—The term ‘integrated gasifi- culated under section 474. mencement of the generation of electricity cation combined cycle plant’ means any ‘‘(2) NO JUDICIAL REVIEW.—Notwithstanding for sale. combination of equipment used to gasify fos- any other provision of law to the contrary, ‘‘(12) COMPLIANCE PLAN.—The term ‘compli- sil fuels (with or without other material) and the calculation of the allocation for any unit ance plan’ means either— then burn the gas in a combined cycle com- or facility, and the determination of any val- ‘‘(A) a statement that the facility will bustion turbine. ues used in such calculation, under sections comply with all applicable requirements ‘‘(25) OIL-FIRED.—The term ‘oil-fired’, with 424, 434, 454, and 474 shall not be subject to under this title; or regard to a unit, means, except under sec- judicial review. ‘‘(B) under subpart 1 of part B or subpart 1 tions 424 and 434, combusting fuel oil for ‘‘(3) ALLOCATION WITHOUT COST.—Allow- of part C, where applicable, a schedule and more than 10 percent the unit’s total heat ances shall be allocated by the Adminis- description of the method or methods for input, and combusting no coal or coal-de- trator without cost to the recipient, in ac- compliance and certification by the owner or rived fuel, in any year. cordance with this title. operator that the facility is in compliance ‘‘(26) OWNER OR OPERATOR.—The term ‘‘(b) ALLOWANCE TRANSFER SYSTEM.—Al- with the requirements of that subpart. ‘owner or operator’ with regard to a unit or lowances allocated or sold by the Adminis- ‘‘(13) CONTINUOUS EMISSION MONITORING SYS- facility means, except for subpart 1 of part B trator under this title may be transferred TEM.—The term ‘continuous emission moni- and subpart 1 of part C, any person who among designated representatives of the toring system’ (CEMS) means the equipment owns, leases, operates, controls, or super- owners or operators of affected facilities as required by section 405, used to sample, vises the unit or the facility. under this title and any other person, as pro- analyze, measure, and provide on a contin- ‘‘(27) PERMITTING AUTHORITY.—The term vided by the allowance system regulations uous basis a permanent record of emissions ‘permitting authority’ means the Adminis- promulgated by the Administrator. With re- and flow (expressed in pounds per million trator, or the State or local air pollution gard to sulfur dioxide allowances, the Ad- British thermal units (lbs/mmBtu), pounds control agency, with an approved permitting ministrator shall implement this subsection per hour (lbs/hr) or such other form as the program under title V of the Act. under 40 CFR part 73 (2002), amended as ap- Administrator may prescribe by regulations ‘‘(28) POTENTIAL ELECTRICAL OUTPUT.—The propriate by the Administrator. With regard under section 405. term ‘potential electrical output’ with re- to nitrogen oxides allowances and mercury ‘‘(14) DESIGNATED REPRESENTATIVE.—The gard to a generator means the nameplate ca- allowances, the Administrator shall imple- term ‘designated representative’ means a re- pacity of the generator multiplied by 8,760 ment this subsection by promulgating regu- sponsible person or official authorized by the hours. lations not later than twenty-four months owner or operator of a unit and the facility ‘‘(29) SIMPLE CYCLE COMBUSTION TURBINE.— after the date of enactment of the Clear that includes the unit to represent the owner The term ‘simple cycle combustion turbine’ Skies Act of 2005. The regulations under this or operator in matters pertaining to the means a combustion turbine that does not subsection shall establish the allowance sys- holding, transfer, or disposition of allow- extract heat from the combustion turbine tem prescribed under this section, including, ances, and the submission of and compliance exhaust gases. but not limited to, requirements for the allo- with permits, permit applications, and com- ‘‘(30) STATIONARY SOURCE.—The term ‘sta- cation, transfer, and use of allowances under pliance plans. tionary source’ means any building, struc- this title. Such regulations shall prohibit the ‘‘(15) DUCT BURNER.—The term ‘duct burn- ture, facility, or installation located on one use of any allowance prior to the calendar er’ means a combustion device that uses the or more contiguous or adjacent properties year for which the allowance was allocated exhaust from a combustion turbine to burn under common control or ownership of the and shall provide, consistent with the pur- fuel for heat recovery. same person or persons which emits or may poses of this title, for the identification of

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unused allowances, and for such unused al- ‘‘(2) EMISSIONS.—It shall be unlawful for ‘‘(h) PUBLIC UTILITY HOLDING COMPANY lowances to be carried forward and added to any affected unit or for the affected units at ACT.—The acquisition or disposition of al- allowances allocated in subsequent years. a facility to emit sulfur dioxide, nitrogen ox- lowances pursuant to this title including the Such regulations shall provide, or shall be ides, and mercury, as the case may be, dur- issuance of securities or the undertaking of amended to provide, that transfers of allow- ing a year in excess of the number of allow- any other financing transaction in connec- ances shall not be effective until certifi- ances held for that unit or facility for that tion with such allowances shall not be sub- cation of the transfer, signed by a respon- year by the designated representative as pro- ject to the provisions of the Public Utility sible official of the transferor, is received vided in sections 412(c), 422, 432, 452, and 472. Holding Company Act of 1935. and recorded by the Administrator. ‘‘(3) PURCHASE OF ALLOWANCES.—The owner ‘‘(i) INTERPOLLUTANT TRADING.—Not later ‘‘(c) ALLOWANCE TRACKING SYSTEM.—The or operator of a facility may purchase allow- than July 1, 2009, the Administrator shall Administrator shall promulgate regulations ances directly from the Administrator to be furnish to the Congress a study evaluating establishing a system for issuing, recording, used only to meet the requirements of sec- the environmental and economic con- and tracking allowances, which shall specify tions 422, 432, 452, and 472, as the case may sequences of amending this title to permit all necessary procedures and requirements be, for the year in which the purchase is trading sulfur dioxide allowances for nitro- for an orderly and competitive functioning of made or the prior year. Not later than thir- gen oxides allowances and nitrogen oxides the allowance system. Such system shall allowances for sulfur dioxide allowances. ty-six months after the date of enactment of provide, by twenty-four months prior to the ‘‘(j) COMPLIANCE ASSISTANCE ACCOUNT.—An the Clear Skies Act of 2005, the Adminis- compliance year, for one or more facility- account shall be established by the Sec- trator shall promulgate regulations pro- wide accounts for holding sulfur dioxide al- retary of Energy in consultation with the viding for direct sales of sulfur dioxide al- lowances, nitrogen oxides allowances, and, if Administrator: lowances, nitrogen oxides allowances, and applicable, mercury allowances for all af- ‘‘(1) USE OF AMOUNTS.—Payments or mon- fected units at an affected facility. With re- mercury allowances to an owner or operator ies deposited in this account in accordance gard to sulfur dioxide allowances, the Ad- of a facility. The regulations shall provide with this title shall be used for the purpose ministrator shall implement this subsection that— of developing emission control technologies under 40 CFR part 73 (2002), amended as ap- ‘‘(A) such allowances may be used only to through direct grants to affected units that propriate by the Administrator. With regard meet the requirements of section 422, 432, demonstrate new control technologies regu- to nitrogen oxides allowances and mercury 452, and 472, as the case may be, for such fa- lated under this title. cility and for the year in which the purchase allowances, the Administrator shall imple- ‘‘(2) REGULATIONS.—The Secretary of En- ment this subsection by promulgating regu- is made or the prior year; ergy in consultation with the Administrator lations not later than twenty-four months ‘‘(B) each such sulfur dioxide allowance shall promulgate regulations with notice and after the date of enactment of the Clear shall be sold for $2,000, each such nitrogen opportunity for comment to establish cri- Skies Act of 2005. All allowance allocations oxides allowance shall be sold for $4,000, and teria for affected units to qualify for this and transfers shall, upon recording by the each such mercury allowance shall be sold subsection. for $2,187.50, with such prices adjusted for in- Administrator, be deemed a part of each ‘‘SEC. 404. PERMITS AND COMPLIANCE PLANS. flation based on the Consumer Price Index unit’s or facility’s permit requirements pur- ‘‘(a) PERMIT PROGRAM.—The provisions of suant to section 404, without any further per- on the date of enactment of the Clear Skies this title shall be implemented, subject to mit review and revision. Act of 2005 and annually thereafter; section 403, by permits issued to units and ‘‘(d) NATURE OF ALLOWANCES.—A sulfur di- ‘‘(C) the proceeds from any sales of allow- facilities subject to this title and enforced in oxide allowance, nitrogen oxides allowance, ances under subparagraph (B) shall be, in ac- accordance with the provisions of title V, as or mercury allowance allocated or sold by cordance with paragraph (j), deposited in the modified by this title. Any such permit the Administrator under this title is a lim- Compliance Assistance Account; issued by the Administrator, or by a State ited authorization to emit one ton of sulfur ‘‘(D) except for allowances subject to (E), with an approved permit program, shall pro- dioxide, one ton of nitrogen oxides, or one the allowances directly purchased for use for hibit— ounce of mercury, as the case may be, in ac- the year specified in subparagraph (A) shall ‘‘(1) annual emissions of sulfur dioxide, ni- cordance with the provisions of this title. be, on a pro rata basis, taken from, and re- trogen oxides, and mercury in excess of the Such allowance does not constitute a prop- duce, the amount of sulfur dioxide allow- number of allowances required to be held in erty right. Nothing in this title or in any ances, nitrogen oxides allowances, or mer- accordance with sections 412(c), 422, 432, 452, other provision of law shall be construed to cury allowances, as the case may be, that and 472; limit the authority of the United States to would otherwise be allocated under section ‘‘(2) exceeding applicable emissions rates terminate or limit such authorization. Noth- 423, 453, or 473 starting for the second year under section 441; ing in this section relating to allowances after the specified year and continuing for ‘‘(3) the use of any allowance prior to the shall be construed as affecting the applica- each subsequent year as necessary; and year for which it was allocated; and tion of, or compliance with, any other provi- ‘‘(E) if the designated representative does ‘‘(4) contravention of any other provision sion of this Act to an affected unit or facil- not use any such allowance in accordance of the permit. ity, including the provisions related to appli- with paragraph (A) the designated represent- cable National Ambient Air Quality Stand- No permit shall be issued that is incon- ative shall hold the allowance for deduction sistent with the requirements of this title, ards and State implementation plans. Noth- by the Administrator. The Administrator ing in this section shall be construed as re- and title V as applicable. shall deduct the allowance without refund or ‘‘(b) COMPLIANCE PLAN.— quiring a change of any kind in any State other form of recompense. law regulating electric utility rates and ‘‘(1) IN GENERAL.—Each initial permit ap- ‘‘(4) USE OF ALLOWANCES.—Allowances may plication shall be accompanied by a compli- charges or affecting any State law regarding not be used prior to the calendar year for such State regulation or as limiting State ance plan for the facility to comply with its which they are allocated but may be used in requirements under this title. Where an af- regulation (including any prudency review) succeeding years. Nothing in this section or under such a State law. Nothing in this sec- fected facility consists of more than one af- in the allowance system regulations shall re- fected unit, such plan shall cover all such tion shall be construed as modifying the Fed- lieve the Administrator of the Administra- eral Power Act or as affecting the authority units, and such facility shall be considered a tor’s permitting, monitoring and enforce- of the Federal Energy Regulatory Commis- ‘facility’ under section 502(c). Nothing in this ment obligations under this Act, nor relieve sion under that Act. Nothing in this title section regarding compliance plans or in affected facilities of their requirements and shall be construed to interfere with or im- title V shall be construed as affecting allow- liabilities under the Act. pair any program for competitive bidding for ances. power supply in a State in which such pro- ‘‘(f) COMPETITIVE BIDDING FOR POWER SUP- ‘‘(2) STATEMENTS.— gram is established. Allowances, once allo- PLY.—Nothing in this title shall be construed ‘‘(A) IN GENERAL.—Submission of a state- cated or sold to a person by the Adminis- to interfere with or impair any program for ment by the owner or operator, or the des- trator, may be received, held, and tempo- competitive bidding for power supply in a ignated representative of the owners and op- rarily or permanently transferred in accord- State in which such program is established. erators, of a unit subject to the emissions ance with this title and the regulations of ‘‘(g) APPLICABILITY OF THE ANTITRUST limitation requirements of sections 412(c), the Administrator without regard to wheth- LAWS.— 413, 414, and 441, that the unit will meet the er or not a permit is in effect under title V ‘‘(1) IN GENERAL.—Nothing in this section applicable emissions limitation require- of the Clean Air Act or section 404 of the affects— ments of such sections in a timely manner or Clear Skies Act of 2005 with respect to the ‘‘(A) the applicability of the antitrust laws that, in the case of the emissions limitation unit for which such allowance was originally to the transfer, use, or sale of allowances; or requirements of sections 412(c), 413, and 414, allocated and recorded. ‘‘(B) the authority of the Federal Energy the owners and operators will hold sulfur di- ‘‘(e) PROHIBITIONS.— Regulatory Commission under any provision oxide allowances in the amount required by ‘‘(1) IN GENERAL.—It shall be unlawful for of law respecting unfair methods of competi- section 412(c), shall be deemed to meet the any person to hold, use, or transfer any al- tion or anticompetitive acts or practices. proposed and approved compliance planning lowance allocated or sold by the Adminis- ‘‘(2) DEFINITION OF ANTITRUST LAWS.—In requirements of this section and title V, ex- trator under this title, except in accordance this section, the term ‘antitrust laws’ means cept that, for any unit that will meet the re- with regulations promulgated by the Admin- those Acts set forth in section 1 of the Clay- quirements of this title by means of an alter- istrator. ton Act (15 U.S.C. 12). native method of compliance authorized

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Where there ‘‘(B) ALTERNATIVE MONITORING.— pliance a comprehensive description of the are multiple holders of a legal or equitable ‘‘(i) IN GENERAL.—The Administrator may schedule and means by which the unit will title to, or a leasehold interest in, such a specify an alternative monitoring or compli- rely on one or more alternative methods of unit, or where a utility or industrial cus- ance system for determining mercury emis- compliance in the manner and time author- tomer purchases power from an affected unit sions. In specifying such alternative moni- ized under subpart 1 of part B or subpart 1 of (or units) under life-of-the-unit, firm power toring or compliance systems, the lack of part C. contractual arrangements, the certificate commercially available appropriate and rea- ‘‘(B) OTHER STATEMENTS.—Submission of a shall state— sonable vendor guarantees shall constitute a statement by the owner or operator, or the ‘‘(A) that allowances and the proceeds or reasonable and permissible basis for speci- designated representative, of a facility that transactions involving allowance will be fying alternative monitoring or compliance includes a unit subject to the emissions limi- deemed to be held or distributed in propor- systems for mercury. tation requirements of sections 422, 432, 452, tion to each holder’s legal, equitable, lease- ‘‘(ii) LIMITATIONS.—The regulations under and 472 that the owner or operator will hold hold, or contractual reservation or entitle- clause (iv) may include limitations on the use of alternative compliance methods by sulfur dioxide allowances, nitrogen oxide al- ment, or units equipped with an alternative moni- lowances, and mercury allowances, as the ‘‘(B) if such multiple holders have ex- toring system as may be necessary to pre- case may be, in the amount required by such pressly provided for a different distribution serve the orderly functioning of the allow- sections shall be deemed to meet the pro- of allowances by contract, that allowances ance system, and which will ensure to a rea- posed and approved compliance planning re- and the proceeds of transactions involving quirements of this section and title V with sonable extent the emissions reductions con- allowances will be deemed to be held or dis- templated by this title. regard to subparts A through D. tributed in accordance with the contract. ‘‘(iii) NO SEPARATE MONITORING SYSTEM.— ‘‘(3) RECORDING OF TRANSFERS.—Recording ‘‘(2) PASSIVE LESSOR.—A passive lessor, of a by the Administrator of transfers of allow- The regulations under clause (iv) shall not person who has an equitable interest through require a separate CEMS or other moni- ances shall amend automatically, and will such lessor, whose rental payments are not not reopen or require reopening of, any or all toring system for each unit where two or based, either directly or indirectly, upon the more units utilize a single stack and shall applicable proposed or approved permit ap- revenues or income from the affected unit plications, compliance plans, and permits. require that the owner or operator collect shall not be deemed to be a holder of a legal, sufficient information to permit reliable ‘‘(c) PERMITS.—The owner or operator of equitable, leasehold, or contractual interest each facility under this title that includes an compliance determinations for such units. for the purposes of holding or distributing al- affected unit subject to title V shall submit ‘‘(iv) SPECIFICATION OF REQUIREMENTS.— lowances as provided in this subsection, un- a permit application and compliance plan The Administrator shall, by regulation, less expressly provided for in the leasehold with regard to the applicable requirements specify the requirements for CEMS under agreement. Except as otherwise provided in under sections 412(c), 422, 432, 441, 452, and 472 subparagraph (A), for any alternative moni- this subsection, where all legal or equitable for sulfur dioxide emissions, nitrogen oxide toring or compliance system that is dem- title to or interest in an affected unit is held emissions, and mercury emissions from such onstrated as providing information which is by a single person, the certification shall unit to the permitting authority in accord- reasonably of the same precision, reliability, state that all allowances received by the ance with the deadline for submission of per- accessibility, and timeliness as that provided unit are deemed to be held for that person. mit applications and compliance plans under by CEMS, and for recordkeeping and report- ing of information from such systems. Such title V. The permitting authority shall issue ‘‘SEC. 405. MONITORING, REPORTING, AND REC- a permit to such owner or operator, or the ORDKEEPING REQUIREMENTS. regulations may include limitations on the designated representative of such owner or use of alternative compliance methods by ‘‘(a) REQUIREMENTS.— operator, that satisfies the requirements of units equipped with an alternative moni- ‘‘(1) APPLICABILITY.— title V and this title. toring system as may be necessary to pre- N GENERAL ‘‘(d) AMENDMENT OF APPLICATION AND COM- ‘‘(A) I .—The owner and operator serve the orderly functioning of the allow- PLIANCE PLAN.—At any time after the sub- of any facility subject to this title shall be ance system, and which will ensure to a rea- mission of an application and compliance required to install and operate CEMS on sonable extent the emissions reductions con- plan under this section, the applicant may each affected unit subject to subpart 1 of templated by this title. Where two or more submit a revised application and compliance part B or subpart 1 of part C at the facility, units utilize a single stack, a separate CEMS plan, in accordance with the requirements of and to quality assure the data, for sulfur di- shall not be required for each unit, and for this section. oxide, nitrogen oxides, opacity, and volu- such units the regulations shall require that ‘‘(e) PROHIBITION.— metric flow at each such unit. the owner or operator collect sufficient in- ‘‘(1) IN GENERAL.—It shall be unlawful for ‘‘(B) SPECIFICATION OF REQUIREMENTS.—The formation to permit reliable compliance de- any person to operate any facility subject to Administrator shall, by regulation, specify terminations for each such unit. this title except in compliance with the the requirements for CEMS under subpara- ‘‘(b) DEADLINES.— terms and requirements of a permit applica- graph (A), for any alternative monitoring ‘‘(1) NEW UTILITY UNITS.—Upon commence- tion and compliance plan (including amend- system that is demonstrated as providing in- ment of commercial operation of each new ments thereto) or permit issued by the Ad- formation with the same precision, reli- utility unit under subpart I of part B, the ministrator or a State with an approved per- ability, accessibility, and time lines as that unit shall comply with the requirements of mit program. For purposes of this sub- provided by CEMS, and for recordkeeping subsection (a)(1). section, compliance, as provided in section and reporting of information from such sys- ‘‘(2) DEADLINE FOR AFFECTED UNITS UNDER 504(f), with a permit issued under title V tems. Such regulations may include limita- SUBPART 2 OF PART B FOR INSTALLATION AND which complies with this title for facilities tions on the use of alternative compliance OPERATION OF CEMS.—By the later of the date subject to this title shall be deemed compli- methods by units equipped with an alter- that is 1 year before the commencement date ance with this subsection as well as section native monitoring system as may be nec- of the sulfur dioxide allowance requirement 502(a). essary to preserve the orderly functioning of of section 422, or the date on which the unit ‘‘(2) NO TERMINATION OF OPERATIONS.—In the allowance system, and which will ensure commences operation, the owner or operator order to ensure reliability of electric power, the emissions reductions contemplated by of each affected unit under subpart 2 of part nothing in this title or title V shall be con- this title. Where 2 or more units utilize a B shall install and operate CEMS, quality as- strued as requiring termination of oper- single stack, a separate CEMS shall not be sure the data, and keep records and reports ations of a unit serving a generator for fail- required for each unit, and for such units the in accordance with the regulations issued ure to have an approved permit or compli- regulations shall require that the owner or under paragraph (a)(2) with regard to sulfur ance plan under this section. operator collect sufficient information to dioxide, opacity, and volumetric flow. ‘‘(f) CERTIFICATE OF REPRESENTATION.—No permit reliable compliance determinations ‘‘(3) DEADLINE FOR AFFECTED UNITS UNDER permit shall be issued under this section to for each such unit. SUBPART 3 OF PART B FOR INSTALLATION AND an affected unit or facility until the des- ‘‘(2) INSTALLATION AND OPERATION.— OPERATION OF CEMS.—By the later of the date ignated representative of the owners or oper- ‘‘(A) IN GENERAL.—The owner and operator that is 1 year before the first covered year, ators has filed a certificate of representation of any facility subject to this title shall be or the date on which the unit commences with regard to matters under this title, in- required to install and operate CEMS to commercial operation, the owner or operator cluding the holding and distribution of al- monitor the emissions from each affected of each affected unit under subpart 3 of part lowances and the proceeds of transactions in- unit at the facility, and to quality assure the B shall install and operate CEMS, quality as- volving allowances. data for— sure the data, and keep records and reports ‘‘(g) MULTIPLE OWNERS.— ‘‘(i) sulfur dioxide, opacity, and volumetric in accordance with the regulations issued ‘‘(1) IN GENERAL.—No permit shall be issued flow for all affected units subject to subpart under paragraph (a)(2) with regard to sulfur under this section to an affected unit until 2 of part B at the facility, dioxide and volumetric flow.

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‘‘(4) DEADLINE FOR AFFECTED UNITS UNDER complying with the requirements of this sec- ‘‘(ii) the Administrator receives the pen- SUBPART 2 OF PART C FOR INSTALLATION AND tion, and any regulations implementing this alty required under this subparagraph; or OPERATION OF CEMS.—By the later of the date section. ‘‘(B) if a requirement under subparagraph that is 1 year before the commencement date ‘‘SEC. 406. EXCESS EMISSIONS PENALTY; GEN- (A) is not met, the quantity of the units’ ex- of the nitrogen oxides allowance require- ERAL COMPLIANCE WITH OTHER cess emissions in tons (or, for mercury emis- ment under section 452, or the date on which PROVISIONS; ENFORCEMENT. sions, in ounces) multiplied by the product the unit commences operation, the owner or ‘‘(a) EXCESS EMISSIONS PENALTY.— obtained by multiplying— operator of each affected unit under subpart ‘‘(1) AMOUNT FOR OXIDES OF NITROGEN.—The ‘‘(i) 1.5; and 2 of part C shall install and operate CEMS, owner or operator of any unit subject to the ‘‘(ii) the respective amount for sulfur diox- quality assure the data, and keep records requirements of section 441 that emits nitro- ide, nitrogen oxides, or mercury specified in and reports in accordance with the regula- gen oxides for any calendar year in excess of subparagraph (A). tions issued under paragraph (a)(2) with re- the unit’s emissions limitation requirement ‘‘(5) PAYMENT.—Any penalty under para- gard to nitrogen oxides. shall be liable for the payment of an excess graph (1), (2), (3), or (4) shall be due and pay- ‘‘(5) DEADLINE FOR AFFECTED UNITS UNDER emissions penalty, except where such emis- able without demand to the Administrator PART D FOR INSTALLATION AND OPERATION OF sions were authorized pursuant to section as provided in regulations issued by the Ad- ministrator. With regard to the penalty CEMS.—By the later of the date that is 1 year 110(f). That penalty shall be calculated on under paragraph 1, the Administrator shall before the commencement date of the mer- the basis of the number of tons emitted in implement this paragraph under 40 CFR part cury allowance requirement of section 472 excess of the unit’s emissions limitation re- 77 (2002), amended as appropriate by the Ad- applies to such unit and commences com- quirement multiplied by $2,000. ministrator. With regard to the penalty mercial operation, or the date on which the ‘‘(2) AMOUNT FOR SULFUR DIOXIDE BEFORE under paragraphs 2, 3, and 4, the Adminis- unit commences operation, the owner or op- 2008.—The owner or operator of any unit sub- trator shall implement this paragraph by erator of each affected unit under part D ject to the requirements of section 412(c) issuing regulations no later than 24 months shall install and operate CEMS, quality as- that emits sulfur dioxide for any calendar after the date of enactment of the Clear sure the data, and keep records and reports year before 2008 in excess of the sulfur diox- Skies Act of 2005. Any such payment shall be in accordance with the regulations issued ide allowances the owner or operator holds under paragraph (a)(2) with regard to mer- deposited in the Compliance Assistance Ac- for use for the unit for that calendar year count. cury. shall be liable for the payment of an excess ‘‘(c) UNAVAILABILITY OF EMISSIONS DATA.— ‘‘(b) EXCESS EMISSIONS OFFSET.— emissions penalty, except where such emis- ‘‘(1) SULFUR DIOXIDE AND NITROGEN OX- ‘‘(1) IN GENERAL.—The owner or operator of sions were authorized pursuant to section IDES.—With respect to sulfur dioxide and ni- any unit subject to the requirements of sec- 110(f) or (g). That penalty shall be calculated trogen oxides, if CEMS data or data from an tion 412(c) that emits sulfur dioxide during as follows: alternative monitoring system approved by any calendar year before 2008 in excess of the ‘‘(A) The product of the unit’s excess emis- the Administrator under subsection (a) is sulfur dioxide allowances held for the unit sions (in tons) multiplied by $2,000, if within not available for any affected unit during for the calendar year shall be liable to offset 30 days after the date on which the owner or any period of a calendar year in which such the excess emissions by an equal tonnage operator was required to hold sulfur dioxide data is required under this title, and the amount in the following calendar year, or allowances— owner or operator cannot provide informa- such longer period as the Administrator may ‘‘(i) the owner or operator offsets the ex- tion, reasonably satisfactory to the Adminis- prescribe. The Administrator shall deduct cess emissions in accordance with paragraph trator, on emissions during that period, the sulfur dioxide allowances equal to the excess (b)(1); and Administrator, in coordination with the tonnage from those held for the facility for ‘‘(ii) the Administrator receives the pen- owner, shall calculate emissions for that pe- the calendar year, or succeeding years dur- alty payment required under this subpara- riod pursuant to regulations promulgated for ing which offsets are required, following the graph. such purpose. The owner or operator shall be year in which the excess emissions occurred. ‘‘(B) If the requirements of clause (A)(i) or liable for excess emissions fees and offsets ‘‘(2) EXCESS EMISSIONS OF SULFUR DIOXIDE.— (A)(ii) are not met, the product of the unit’s under section 406 in accordance with such If the units at a facility that are subject to excess emissions (in tons) multiplied by regulations. Any fee due and payable under the requirements of section 412(c) emit sul- $3,000. this subsection shall not diminish the liabil- fur dioxide for a year after 2007 in excess of ‘‘(3) AMOUNT FOR SULFUR DIOXIDE AFTER ity of the unit’s owner or operator for any the sulfur dioxide allowances that the owner 2007.—If the units at a facility that are sub- fine, penalty, fee, or assessment against the or operator of the facility holds for use for ject to the requirements of section 412(c) unit for the same violation under any other the facility for that calendar year, the owner emit sulfur dioxide for any calendar year section of this Act. or operator shall be liable to offset the ex- after 2007 in excess of the sulfur dioxide al- cess emissions by an equal amount of tons in ‘‘(2) MERCURY.—With respect to mercury, if lowances that the owner or operator of the CEMS data or data from an alternative mon- the following calendar year, or such longer facility holds for use for the facility for that itoring system approved by the Adminis- period as the Administrator may prescribe. calendar year, the owner or operator shall be trator under subsection (a) is not available The Administrator shall deduct sulfur diox- liable for the payment of an excess emissions for any affected unit during any period of a ide allowances equal to the excess emissions penalty, except where such emissions were calendar year in which such data is required in tons from those held for the facility for authorized pursuant to section 110(f). That under this title, and the owner or operator the year, or succeeding years during which penalty shall be calculated under paragraph cannot provide information, reasonably sat- offsets are required, following the year in (4)(A) or (4)(B). isfactory to the Administrator, on emissions which the excess emissions occurred. ‘‘(4) UNITS SUBJECT TO SECTIONS 422, 432, 452, during that period, the Administrator in co- ‘‘(3) EXCESS EMISSIONS OF SULFUR DIOXIDE, OR 472.—If the units at a facility that are sub- ordination with the owner, shall calculate NITROGEN OXIDES, OR MERCURY.—If the units ject to the requirements of section 422, 432, emissions for that period pursuant to regula- at a facility that are subject to the require- 452, or 472 emit sulfur dioxide, nitrogen ox- tions promulgated for such purpose. The ments of section 422, 432, 452, or 472 emit sul- ides, or mercury for any calendar year in ex- owner or operator shall be liable for excess fur dioxide, nitrogen oxides, or mercury for cess of the sulfur dioxide allowances, nitro- emissions fees and offsets under section 406 any calendar year in excess of the sulfur di- gen oxides allowances, or mercury allow- in accordance with such regulations. Any fee oxide allowances, nitrogen oxides allow- ances, as the case may be, that the owner or due and payable under this subsection shall ances, or mercury allowances, as the case operator of the facility holds for use for the not diminish the liability of the unit’s owner may be, that the owner or operator of the fa- facility or units for that calendar year, the or operator for any fine, penalty, fee, or as- cility holds for use for the facility for that owner or operator shall be liable for the pay- sessment against the unit for the same viola- calendar year, the owner or operator shall be ment of an excess emissions penalty, except tion under any other section of this Act. liable to offset the excess emissions by an where such emissions were authorized pursu- ‘‘(d) IMPLEMENTATION.—With regard to sul- equal amount of tons or, for mercury, ounces fur dioxide, nitrogen oxides, opacity, and ant to section 110(f). That penalty shall be in the following calendar year, or such volumetric flow, the Administrator shall im- equal to— longer period as the Administrator may pre- plement subsections (a) and (c) under 40 CFR ‘‘(A) the quantity of the units’ excess emis- scribe. The Administrator shall deduct sulfur part 75 (2002), amended, as appropriate by the sions in tons (or, for mercury emissions, in dioxide allowances, nitrogen oxide allow- Administrator. With regard to mercury, the ounces) multiplied by $2,000 (in the case of ances, or mercury allowances, as the case Administrator shall implement subsections sulfur dioxide), $4,000 (in the case of nitrogen may be, equal to the excess emissions in tons (a) and (c) by issuing proposed regulations oxides), or $2187.50 (in the case of mercury) or, for mercury, ounces from those held for not later than 36 months before the com- if, on or before the date that is 30 days after the facility for the year, or succeeding years mencement date of the mercury allowance the date on which the owner or operator was during which offsets are required, following requirement under section 472 and final regu- required to hold sulfur dioxide, nitrogen ox- the year in which the excess emissions oc- lations not later than 24 months before that ides allowance, or mercury allowances, as curred. commencement date. the case may be— ‘‘(c) PENALTY ADJUSTMENT.—The Adminis- ‘‘(e) PROHIBITION.—It shall be unlawful for ‘‘(i) the owner or operator offsets the ex- trator shall, by regulation, adjust the pen- the owner or operator of any facility subject cess emissions in accordance with paragraph alty specified in subsection (a)(1) and (a)(2) to this title to operate a facility without (2) or (3) of subsection (b), as applicable; and for inflation, based on the Consumer Price

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Index, on November 15, 1990, and annually sion rates, as the case may be, for the unit ‘‘(B) TYPES OF DATA.—Reliable data de- thereafter. shall be the unit’s heat input or product out- scribed in subparagraph (A) includes— ‘‘(d) PROHIBITION.—It shall be unlawful for put and the emission rates of sulfur dioxide ‘‘(i) alternative data that has been used to the owner or operator of any unit or facility and nitrogen oxides in accordance with para- determine compliance with a regulatory or liable for a penalty and offset under this sec- graphs (3) and (4). monitoring requirement under this Act or a tion to fail— ‘‘(C) REGULATIONS.—The Administrator comparable State law, if the data establishes ‘‘(1) to pay the penalty under subsection shall promulgate regulations requiring the a reliable measure of heat input or product (a); or unit’s baselines for heat input or product output and sulfur dioxide and nitrogen ox- ‘‘(2) to offset excess emissions as required output and for sulfur dioxide and nitrogen ides emissions over a simultaneous period of by subsection (b). oxides emission rates to be based on the time; or ‘‘(e) SAVINGS PROVISION.—Nothing in this same year and specifying minimum data re- ‘‘(ii) if that data is not available, such title shall limit or otherwise affect the appli- quirements consistent with paragraph (5) for other alternative reliable data as the Admin- cation of section 113, 114, 120, or 304 except as baseline determination. istrator may prescribe. otherwise explicitly provided in this title. ‘‘(3) HEAT INPUT AND EMISSIONS BASE- ‘‘(C) USE OF CEMS FOR COMPLIANCE MONI- ‘‘(f) OTHER REQUIREMENTS.—Except as ex- LINES.—For the purposes of this subsection, TORING.—The Administrator— pressly provided, compliance with the re- heat input and emissions baselines shall be ‘‘(i) shall not require the use of CEMS for quirements of this title shall not exempt or calculated, at the election of the owner or compliance monitoring by units of less than exclude the owner or operator of any facility operator of the relevant unit, as— 250 mmBtu heat input or equivalent product subject to this title from compliance with ‘‘(A)(i) for heat input, the average of the output capacity subject to this section un- any other applicable requirements of this unit’s highest heat input for 3 of the 5 years less the Administrator concludes that a Act. Notwithstanding any other provision of before the year for which the Administrator CEMS requirement is necessary to generate this Act, no State or political subdivision is determining the allocations; and reliable data for compliance determinations; thereof shall restrict or interfere with the ‘‘(ii) for emissions baselines, the average of ‘‘(ii) shall require the use of CEMS for transfer, sale, or purchase of allowances the relevant emissions during those same 3 compliance monitoring by units of between under this title. years; or 250 mmBtu and 750 mmBtu heat input or ‘‘(g) VIOLATIONS.—Violation by any person ‘‘(B)(i) for heat input, the average of any equivalent product output capacity unless subject to this title of any prohibition of, re- period of 24 consecutive months during the the Administrator determines that a CEMS quirement of, or regulation promulgated pur- 10-year period immediately prior to the date requirement is not necessary to generate re- suant to this title shall be a violation of this of submission of an application under sub- liable data for compliance determinations; Act. In addition to the other requirements section (b), on the condition that the heat and and prohibitions provided for in this title, input does not exceed 1.2 times the average ‘‘(iii) shall require the use of CEMS for the operation of any affected unit or the af- of the 10-year period; and compliance monitoring for all units greater fected units at a facility to emit sulfur diox- ‘‘(ii) for emissions baselines, the average of than 750 mmBtu heat input or equivalent ide, nitrogen oxides, or mercury in violation the relevant emissions for the 4-year period product output capacity. of section 412(c), 422, 432, 452, and 472, as the prior to the date of enactment of the Clear ‘‘(D) RELIABILITY.—In determining the reli- ability of data for purposes of this sub- case may be, shall be deemed a violation, Skies Act of 2005 (for units that submit an application on or before January 1, 2009), or section, the Administrator shall consider the with each ton or, in the case of mercury, the average of the relevant emissions for the cost of generating more reliable data com- each ounce emitted in excess of allowances 4 years before the date of submission of the pared to the quantitative importance of the held constituting a separate violation. application under that Act (for units that resulting gain in quantifying emissions. ‘‘SEC. 407. ELECTION FOR ADDITIONAL UNITS. submit an application after January 1, 2009). ‘‘(e) EMISSION LIMITATIONS.—After approval ‘‘(a) APPLICABILITY.— ‘‘(4) DESIGNATION FOR PRODUCT OUTPUT of the designation of the unit under sub- ‘‘(1) IN GENERAL.—The owner or operator of BASIS.— section (c), the unit shall become— any unit that is not an affected EGU under ‘‘(A) IN GENERAL.—The owner or operator ‘‘(1) an affected unit under subpart 2 of subpart 2 of part B and subpart 2 of part C of a unit that is subject to new source per- part B, and shall be allocated sulfur dioxide and whose emissions of sulfur dioxide and ni- formance standards or other measures im- allowances under subsection (f), beginning trogen oxides are vented only through a posed by this Act on a product output basis on the later of January 1, 2010, or January 1 stack or duct may elect to designate the unit rather than a heat input basis may elect to of the year after approval of the designation; as an affected unit under subpart 2 of part B designate the unit as an affected unit under ‘‘(2) an affected unit under subpart 2 of and subpart 2 of part C. subpart 2 of part B and subpart 2 of part C. part C, and shall be allocated nitrogen oxides ‘‘(2) EFFECT OF DESIGNATION.—If the owner ‘‘(B) BASELINE PRODUCT OUTPUT AND EMIS- allowances under subsection (f), beginning or operator elects to designate a unit that is SIONS BASELINES.—For the purposes of this on the later of January 1, 2010, or January 1 solid fuel-fired and emits mercury vented paragraph, for those units using a product of the year after approval of the designation; only through a stack or duct, the owner or output basis, the baseline product output and operator shall also designate the unit as an and emissions baselines in this subparagraph ‘‘(3) if applicable, an affected unit under affected unit under part D. If an elected unit shall be calculated, at the election of the part D, and shall be allocated mercury allow- fires only gaseous fuels, the unit may be des- owner or operator of the relevant unit, as— ances, beginning on the later of January l, ignated under subpart 2 of part C only. ‘‘(i)(I) for product input, the average of the 2010, or January 1 of the year after approval ‘‘(b) APPLICATION.—An owner or operator unit’s highest product output for 3 of the 5 of designation. making an election under subsection (a) years preceding the year for which the Ad- ‘‘(f) ALLOCATIONS.— shall submit an application for the election ministrator is determining the allocations; ‘‘(1) SULFUR DIOXIDE AND NITROGEN OX- to the Administrator for approval. and IDES.— ‘‘(c) APPROVAL.—Subject to subsections (d) ‘‘(II) for emissions baselines, the average of ‘‘(A) IN GENERAL.—The Administrator shall through (m), if the Administrator deter- the relevant emissions for the same years promulgate regulations determining the al- mines that an application for an election used to determine product output; or locations of sulfur dioxide allowances and ni- under subsection (b) meets the requirements ‘‘(B)(i) for product input, the average of trogen oxides allowances for each year dur- of subsection (a), the Administrator shall ap- any period of 24 consecutive months during ing which a unit is an affected unit under prove the designation as an affected unit the 10-year period immediately prior to the subsection (e). under subpart 2 of part B and subpart 2 of date of submission of an application under ‘‘(B) ALLOCATIONS.—The regulations shall part C and, if applicable, under part D. subsection (b), on the condition that the provide for allocations equal to 70 percent ‘‘(d) ESTABLISHMENT OF BASELINE.— product input does not exceed 1.2 times the (beginning January 1, 2010) and 50 percent ‘‘(1) IN GENERAL.—After approval of a des- average of the 10-year period; and (beginning January 1, 2018) of the unit’s ignation under subsection (c), an owner or ‘‘(ii) for emissions baselines, the average of baseline heat input or product output under operator shall install and operate moni- the relevant emissions for the 4-year period subsection (d) multiplied by the lesser of— toring on the designated unit required under prior to the date of enactment of the Clear ‘‘(i) the unit’s baseline sulfur dioxide emis- paragraph (5), except that, in a case in which Skies Act of 2005 (for units that submit an sion rate or nitrogen oxides emission rate, as 2 or more units use a single stack, separate application on or before January 1, 2009), or the case may be; or monitoring shall be required for each unit the average of the relevant emissions for the ‘‘(ii) the unit’s most stringent Federal or unless all units using the same stack are des- 4 years before the date of submission of the State emission limitation for sulfur dioxide ignated as affected units. application under that Act (for units that or nitrogen oxides applicable to the year on ‘‘(2) BASELINES.— submit an application after January 1, 2009). which the unit’s baseline heat input or prod- ‘‘(A) IN GENERAL.—Units shall have base- ‘‘(5) BASELINE DETERMINATIONS.— uct output is based under subsection (d). lines established using heat input unless the ‘‘(A) IN GENERAL.—In making baseline de- ‘‘(2) MERCURY.— unit qualifies for a product output baseline terminations under this section, the Admin- ‘‘(A) IN GENERAL.—The Administrator shall under paragraph (4). istrator may accept any reliable data on promulgate regulations providing for the al- ‘‘(B) HEAT INPUT OR PRODUCT OUTPUT.—The emissions of sulfur dioxide and nitrogen ox- location of mercury allowances to solid fuel- baselines for heat input or product output ides in addition to, and other than, data col- fired units designated under this section for and sulfur dioxide and nitrogen oxides emis- lected from CEMS. each year after January 1, 2010, during which

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a unit is a designated unit under this sec- ‘‘(h) REGULATIONS.—Not later than 18 ‘‘(i) an estimate of the numbers and types tion. months after the date of enactment of the of sources that are expected to be designated ‘‘(B) ALLOCATIONS.—The regulations shall Clear Skies Act of 2005, the Administrator under this section; provide for allocations equal to the lesser shall promulgate regulations implementing ‘‘(ii) an estimate of any increase or de- of— crease in the annual emissions of criteria this section. ‘‘(i) the product obtained by multiplying— pollutants and of those hazardous air pollut- ‘‘(I) the unit’s allowable emissions rate for ‘‘(i) APPLICATION PERIOD.— ants subject to emission limitations under mercury under the national emissions stand- ‘‘(1) IN GENERAL.—Applications for designa- the NESHAPs identified in subsection (j)(1) ards for hazardous air pollutants for boilers tion of units under this section shall be ac- from such sources that may reasonably be and process heaters, industrial furnaces, cepted by the Administrator beginning not expected to occur for each year from 2010 kilns, or other stationary source; by later than 180 days after the date of enact- through 2018; ‘‘(II) the unit’s baseline heat input or prod- ment of this section. ‘‘(iii) an estimate of any increase or de- uct output; and ‘‘(2) APPROVAL AND DISAPPROVAL.—Except crease in the annual emissions of criteria ‘‘(i) the product obtained by multiplying— as provided in paragraph (30, not later than pollutants and of those hazardous air pollut- ‘‘(I) the unit’s most stringent Federal or 270 days after accepting an application under ants subject to emission limitations under State emission limitation for mercury emis- paragraph (1), the Administrator shall ap- the NESHAPs identified in subsection (j)(1) sions rate; by prove or disapprove the application. from such sources that might reasonably be ‘‘(II) the unit’s baseline heat input or prod- ‘‘(3) DETERMINATION OF COMPLETION.— expected to occur for each year from 2010 uct output. ‘‘(A) IN GENERAL.—Not later than 90 days through 2018, if such sources estimated in ‘‘(3) LIMITATION.—Allowances allocated to after accepting an application under para- clause (i) are not designated under this sec- electing units under paragraphs (1) and (2) graph (1), the Administrator shall determine tion; and shall comprise a separate limitation on whether the application is complete. ‘‘(iv) a description of the public health and emissions from sections 423, 433, 453, 473, and ‘‘(B) DETERMINATION OF COMPLETION.—Un- environmental impacts associated with the other provisions of this Act. These allow- less an application accepted under paragraph emissions increases and decreases described ances for sulfur dioxide, nitrogen oxides, or (1) is determined to be incomplete under sub- in clauses (ii) and (iii). mercury, as the case may be, shall be paragraph (A), the application shall be sub- ‘‘(D) ADDITIONAL AUTHORITY.— tradable with allowances allocated under ject to paragraph (2). ‘‘(i) IN GENERAL.—Notwithstanding sub- sections 414, 424, 454, 474, as applicable, on ‘‘(4) STAY OF DEADLINES.—During the pe- section (j)(1), the Administrator may regu- the conditions that— riod beginning on the date of acceptance by late emissions of hazardous air pollutants ‘‘(A) electing units may only trade nitro- the Administrator of an application under listed under section 112(b), other than mer- gen oxides within the respective zones estab- paragraph (1) and ending on the date on cury compounds, from sources designated lished under section 452 within which the which the Administrator acts on the peti- under this section in accordance with section electing unit is located; and tion, the applicable compliance deadlines for 112(f)(2). ‘‘(B) affected units within the WRAP NESHAPs under subsection (j) shall not ‘‘(ii) DETERMINATION.—Not later than 2 States may only purchase sulfur dioxide al- apply to the applicable unit that is the sub- years after the date on which the final report lowances allocated or otherwise distributed ject of the application. under subparagraph (B) is published, the Ad- by the Administrator to electing units with- ministrator shall make a determination in the WRAP States, and will not be counted ‘‘(j) NESHAP APPLICABILITY.— based on the study and other information for purposes of the affected unit’s emissions ‘‘(1) APPLICABILITY.— satisfying the criteria of the Data Quality within the meaning of the WRAP Annex. ‘‘(A) IN GENERAL.—Except as provided in Act whether to establish emissions limita- ‘‘(4) INCENTIVES FOR EARLY REDUCTIONS.— subparagraph (B), a unit that is designated tions under section 112(f) for sources des- ‘‘(A) IN GENERAL.—Not later than 180 as an affected unit under this section shall ignated under this section. months after the date of enactment of this not be subject to the national emissions ‘‘(iii) TREATMENT OF DETERMINATION.—The section, the Administrator shall promulgate standards for hazardous air pollutants determination shall be a final agency action regulations authorizing the allocation of sul- (NESHAP) promulgated under section 112(d) subject to judicial review under section 307 fur dioxide, nitrogen oxides, and mercury al- for— and the Administrative Procedures Act. lowances to units designated under this sec- ‘‘(i) Industrial, Commercial, and Institu- ‘‘(k) EXEMPTION FROM MAJOR SOURCE tion that install or modify pollution control tional Boilers and Process Heaters (Fed. Reg. PRECONSTRUCTION REVIEW REQUIREMENTS AND equipment or combustion technology im- 69–55217); BEST AVAILABLE RETROFIT CONTROL TECH- provements identified in such regulations ‘‘(ii) Plywood and Composite Wood Panel NOLOGY REQUIREMENTS.— after the date of enactment of this section (Fed. Reg. 69–45943); ‘‘(1) MAJOR SOURCE EXEMPTION.— and prior to January 1, 2010. ‘‘(iii) Reciprocating Internal Combustion ‘‘(A) IN GENERAL.—Subject to subparagraph ‘‘(B) PROHIBITION ON CERTAIN ALLOCA- Engines (Fed. Reg. 69–33473); or (B), a unit designated as an affected unit TIONS.—No allowances shall be allocated ‘‘(iv) Stationary Combustion Turbines under this section shall not be considered to under this paragraph for emissions reduc- (Fed. Reg. 69–10511). be a major source, or a part of a major emit- tions attributable to— ‘‘(B) EXCEPTION.—Units that are boilers or ting facility or major stationary source for ‘‘(i) pollution control equipment or com- process heaters, industrial furnaces, kilns, or purposes of compliance with the require- bustion technology improvements that were other stationary sources shall be subject on ments of parts C and D of title I, for the 20- operational or under construction at any and after January 1, 2010, to the emissions year period beginning on the date of enact- time prior to the date of enactment of this limitation for mercury or the equivalent ment of the Clear Skies Act of 2005. section; mercury allocation under subsection (f)(2), ‘‘(B) APPLICABILITY.—Subparagraph (A) ap- ‘‘(ii) fuel switching; or along with associated monitoring and com- plies only if, beginning on the date that is 8 ‘‘(iii) compliance with any Federal regula- pliance requirements, that would be applica- years after the date of enactment of this sec- tion. ble to such units under the NESHAP for tion or designation of a unit as an affected ‘‘(C) ALLOWANCES.—The allowances allo- those sources promulgated pursuant to sec- unit— cated to any unit under this paragraph tion 112(d). ‘‘(i)(I) the designated unit either achieves shall— ‘‘(2) REPORTS.— in fact, or is subject to a regulatory require- ‘‘(i) be in addition to the allowances allo- ‘‘(A) PRELIMINARY REPORT.—Not later than ment to achieve, a limit on the emissions of cated under paragraphs (1) and (2) and sec- 18 months after the date of enactment of this particulate matter from the affected unit to tions 414, 424, 434, 454, and 474; and section, the Administrator shall publish and the level not greater than the level applica- ‘‘(ii) be allocated in an amount equal to 1 make available for public comment a peer ble to the unit either pursuant to subpart D allowance of sulfur dioxide and nitrogen ox- reviewed preliminary report characterizing of part 60 of title 40, Code of Federal Regula- ides for each 1.05 tons of reduction in emis- the emissions and public health effects that tions, or the national emissions standards sions of sulfur dioxide and nitrogen oxides, may reasonably be anticipated to occur from for hazardous air pollutants for industrial respectively, and 1.05 ounces of reduction in the implementation of subsection (j)(1) and boilers and process heaters issued pursuant the emissions of mercury, achieved by the subsection (f). to section 112; or pollution control equipment or combustion ‘‘(B) FINAL REPORT.—Not later than 30 ‘‘(II) the owner or operator of the affected technology improvements starting with the months after the date on which the prelimi- unit properly operates, maintains, and re- year in which the equipment or improvement nary report is published under subparagraph pairs pollution control equipment to limit is implemented. (A), in accordance with section 112(n)(1)(A), emissions of particulate matter; and ‘‘(g) WITHDRAWAL.—The Administrator the Administrator shall publish a final re- ‘‘(ii) the owner or operator of the des- shall promulgate regulations withdrawing port, including responses to the comments ignated unit uses good combustion practices from the approved designation under sub- received. to minimize emissions of carbon monoxide. section (c) any unit that qualifies as an af- ‘‘(C) REQUIREMENTS.—The requirements of ‘‘(2) CLASS I AREA PROTECTIONS.—Notwith- fected EGU under subpart 2 of part B or sub- section 112(n)(1)(A), for purposes of this para- standing the exemption in paragraph (1), an part 2 of part C, or part D after the approval graph, shall be considered to be modified to affected unit located within 50 kilometers of of the designation of the unit under sub- ensure that the final report under subpara- a Class I area on which construction com- section (c). graph (B) includes— mences after the date of enactment of this

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00219 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S326 CONGRESSIONAL RECORD — SENATE January 24, 2005 section is subject to those provisions under fined in section 411, any qualifying project sultation with the Administrator, shall part C of title I to the review of a new or shall not be subject to standards of perform- make a final determination on a petition modified major stationary source’s impact ance under section 111 or to the review and within 180 days of the submittal of a reason- on a Class I area. permitting requirements of part C for any ably complete petition. Failure to act within ‘‘(l) LIMITATION.— pollutant the potential emissions of which the 180-day period will extend the applica- ‘‘(1) IN GENERAL.—No unit designated under will not increase as a result of the dem- bility by 12 months for all units subject to this section shall transfer or bank allow- onstration project. the petition. ances produced as a result of reduced utiliza- ‘‘(4) EPA REGULATIONS.—Not later than ‘‘(B) CONTENTS OF PETITION.—The petition tion or shutdown, except that such allow- twelve months after November 15, 1990, the must contain— ances may be transferred or carried forward Administrator shall promulgate regulations ‘‘(i) a description of each affected unit, the for use in subsequent years to the extent or interpretive rulings to revise require- estimated outage time and a construction that— ments under section 111 and parts C and D, schedule; ‘‘(A) reduced utilization or shutdown re- as appropriate, to facilitate projects con- ‘‘(ii) an estimate of demand from date of sults from the replacement of the unit des- sistent in this subsection. With respect to applicability until 2018; ignated under this section, with any other parts C and D, such regulations or rulings ‘‘(iii) the impacts on reliability associated unit or units subject to the requirements of shall apply to all areas in which EPA is the with constructing all of the pollution control this subpart; and permitting authority. In those instances in projects, including those for sulfur dioxide, ‘‘(B) the designated unit’s allowances are which the State is the permitting authority nitrogen oxides, mercury, or particulate transferred or carried forward for use at such under part C or D, any State may adopt and matter, by the respective deadlines; and other replacement unit or units. submit to the Administrator for approval re- ‘‘(iv) how the proposed compliance sched- ‘‘(2) NO GREATER ALLOCATION.—In no case visions to its implementation plan to apply ule would alleviate detrimental impacts. may the Administrator allocate to a source the regulations or rulings promulgated under ‘‘(C) FAILURE TO PROMULGATE REGULA- designated under this section allowances in this subsection. TIONS.—If the Secretary of Energy fails to an amount greater than the emissions re- ‘‘(c) EXEMPTION FOR REACTIVATION OF VERY promulgate final regulations or such regula- sulting from operation of the source in full CLEAN UNITS.—Physical changes or changes tions are not effective for any reason, within compliance with the requirements of this in the method of operation associated with the prescribed time, petitions containing Act. the commencement of commercial oper- reasonably sufficient information for a final ‘‘(3) NO VIOLATION.—No allowances allo- ations by a coal-fired utility unit after a pe- determination may be submitted to the Sec- cated under this Act shall authorize oper- riod of discontinued operation shall not sub- retary of Energy and will be deemed com- ation of a unit in violation of any other re- ject the unit to the requirements of section plete. quirements of this Act. 111 or part C of the Act where the unit— ‘‘(3) FINAL DETERMINATION.—In making a ‘‘(m) DEFINITION OF PRODUCT OUTPUT.—In ‘‘(1) has not been in operation for the two- final determination the Secretary of Energy, this section, the term ‘product output’ year period prior to November 15, 1990, and in consultation with the Administrator, means the output of a stationary source that the emissions from such unit continue to be shall consider the following factors, provided produces a commercial product other than carried in the permitting authority’s emis- that not all factors need be present to make a determination that, to a reasonable degree, electricity, heat, or steam which may be sions inventory on November 15, 1990; reliability will be threatened: used to determine a baseline for units for ‘‘(2) was equipped prior to shut-down with ‘‘(A) SUPPLY.—The ability of vendors to which heat input is not an appropriate base- a continuous system of emissions control supply scrubbers; scrubber system equip- line.’’. that achieves a removal efficiency for sulfur ment, materials and scrubber affected bal- ‘‘SEC. 408. CLEAN COAL TECHNOLOGY REGU- dioxide of no less than 85 percent and a re- ance of plant equipment including fans, LATORY INCENTIVES. moval efficiency for particulates of no less ‘‘(a) DEFINITION.—For purposes of this sec- pumps, electric motors, motor drives, than 98 percent; tion, the term ‘clean coal technology’ means dampers, electrical power supply equipment; ‘‘(3) is equipped with low-NO burners prior any technology, including technologies ap- X at fair prices with meaningful guarantees or to the time of commencement; and plied at the precombustion, combustion, or warranties as to availability, delivery dates ‘‘(4) is otherwise in compliance with the re- post combustion stage, at a new or existing and meeting contracted pollution control re- facility which will achieve significant reduc- quirements of this Act. duction requirements or emissions limita- tions in air emissions of sulfur dioxide or ox- ‘‘SEC. 409. ELECTRICITY RELIABILITY. tions; with similar considerations for nitro- ides of nitrogen associated with the utiliza- ‘‘(a) RELIABILITY.— gen oxides, mercury or particulate matter tion of coal in the generation of electricity, ‘‘(1) APPLICABILITY.—At any time prior the control technology, or any combination process steam, or industrial products, which applicability of this Act under sections 422, thereof. is not in widespread use as of November 15, 432, 452, and 472, in order to ensure the reli- ‘‘(B) DESIGN AND CONSTRUCTION RE- 1990. ability of an electric utility company or sys- SOURCES.—The availability and limitations ‘‘(b) REVISED REGULATIONS FOR CLEAN COAL tem, including a system cooperatively or of key sulfur dioxide, nitrogen oxides or mer- TECHNOLOGY DEMONSTRATIONS.— municipally owned, for a specified geo- cury controls design resources and North ‘‘(1) APPLICABILITY.—This subsection ap- graphic area or service territory, as deter- American construction resources. The design plies to physical or operational changes to mined by the Department of Energy in con- resources shall include Architect Engineer- existing facilities for the sole purpose of in- sultation with the Administrator, during the ing companies experienced in the design of stallation, operation, cessation, or removal installation of sulfur dioxide pollution con- sulfur dioxide, nitrogen oxides, mercury or of a temporary or permanent clean coal tech- trol technology or scrubbers, nitrogen ox- particulate matter control technology. The nology demonstration project. For the pur- ides, mercury or particulate matter control construction resources shall include con- poses of this section, a clean coal technology technology, or any combination thereof, the struction companies with experience in the demonstration project shall mean a project owner or operator of an affected unit may construction of sulfur dioxide, nitrogen ox- using funds appropriated under the heading meet the requirements of sections 422, 432, ides, mercury, or particulate matter control ‘Department of Energy—Clean Coal Tech- 452, and 472 by means of the compliance pro- technology and trained and experienced nology’, up to a total amount of $2,500,000,000 cedures of this subsection (a). labor resources including but not limited to for commercial demonstration of clean coal ‘‘(2) PETITION.—The owner or operator of boilermakers, iron workers, electricians, me- technology, or similar projects funded an affected unit that believes it may experi- chanics; through appropriations for the Environ- ence an adverse impact on the reliability of ‘‘(C) FEASIBILITY OF CONSTRUCTION.—The mental Protection Agency. The Federal con- the company or system as a result, in sub- feasibility to complete the construction of tribution for qualifying project shall be at stantial part, of the need to construct sulfur all pollution control technology projects by least twenty percent of the total cost of the dioxide pollution control equipment or the relevant applicability compliance dead- demonstration project. scrubbers, nitrogen oxides, mercury or par- line; ‘‘(2) TEMPORARY PROJECTS.—Installation, ticulate matter control technology, or any ‘‘(D) IMPACT.—The impact in terms of unit operation, cessation, or removal of a tem- combination thereof, may petition the Sec- outages and construction schedules on a porary clean coal technology demonstration retary of Energy, in consultation with the company or systems reliability and whether project that is operated for a period of 5 Administrator, for a determination that, to such impact is unreasonable, which term years or less, and which complies with the a reasonable degree of certainty, reliability shall be presumed to be— State implementation plans for the State in will likely be threatened. Upon such a deter- ‘‘(i) an increase in the price of purchase which the project is located and other re- mination, the owner or operator may elect power of (10) percent over the estimated cost quirements necessary to attain and maintain to adopt a compliance method meeting the in cents per kilowatt for the company, sys- the national ambient air quality standards requirements of this subsection, as follows: tem or State, utilized in the latest submis- during and after the project is terminated, ‘‘(A) REGULATIONS.—Within 12 months of sions to a relevant State or Federal agency; shall not subject such facility to the require- enactment the Secretary of Energy shall ‘‘(ii) a projected reduction in available gen- ments of section 111 or part C or D of title I. promulgate regulations describing the re- erating capacity such that adequate reserve ‘‘(3) PERMANENT PROJECTS.—For permanent quirements for a petition and the petition margins for a company, system or State do clean coal technology demonstration process, which will include notice and public not exist, as determined by the Secretary of projects that constitute repowering as de- comment. The Secretary of Energy, in con- Energy in coordination with the relevant

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Federal or State utility agency or reliability ‘‘(4) BASELINE.—The term ‘baseline’ means up of the unit’s combustion chamber and council; or the annual quantity of fossil fuel consumed commencement of the generation of elec- ‘‘(iii) a supply shortage of coal needed to by an affected unit, measured in millions of tricity for sale. meet emissions control expectations for any British Thermal Units (‘mmBtu’s’), cal- ‘‘(9) CONSTRUCTION.—The term ‘construc- proposed emissions control device. culated as follows: tion’ means fabrication, erection, or instal- ‘‘(E) POSITIVE DETERMINATION.—A company ‘‘(A) For each utility unit that was in com- lation of an affected unit. or system which submits a petition to install mercial operation prior to January 1, 1985, ‘‘(10) EXISTING UNIT.—The term ‘existing sulfur dioxide, nitrogen oxides, mercury, or the baseline shall be the annual average unit’ means a unit (including units subject particulate matter control technology, or quantity of mmBtu’s consumed in fuel dur- to section 111) that commenced commercial any combination thereof, on affected units ing calendar years 1985, 1986, and 1987, as re- operation before November 15, 1990. Any unit equaling 25 percent or more of its coal-fired corded by the Department of Energy pursu- that commenced commercial operation be- capacity shall be presumed to meet the re- ant to Form 767. For any utility unit for fore November 15, 1990, which is modified, re- quirements of a positive determination from which such form was not filed, the baseline constructed, or repowered after November 15, the Secretary of Energy. shall be the level specified for such unit in 1990, shall continue to be an existing unit for ‘‘(4) COMPLIANCE.—Upon a positive deter- the 1985 (NAPAP) Emissions Inventory, the purposes of this subpart. For the pur- mination by the Secretary of Energy in ac- Version 2 (NURF), or in a corrected data poses of this subpart, existing units shall not cordance with paragraph (3)(E), such affected base as established by the Administrator include simple combustion turbines, or units units will be granted a 1-year extension from pursuant to paragraph (3). For nonutility which serve a generator with a nameplate units, the baseline in the NAPAP Emissions the relevant applicability date under this capacity of 25 MWe or less. Inventory, Version 2. The Administrator, in title. ‘‘(11) INDEPENDENT POWER PRODUCER.—The the Administrator’s sole discretion, may ex- ‘‘(b) SUBMISSION OF PETITION.—During any term ‘independent power producer’ means clude periods during which a unit is shut- year covered by this title, an affected unit any person who owns or operates, in whole or down for a continuous period of 4 calendar may submit a petition in accordance with in part, one or more new independent power months or longer, and make appropriate ad- paragraph (a)(2) to allow use of sulfur dioxide production facilities. allowances, nitrogen oxides allowances, and justments under this paragraph. Upon peti- ‘‘(12) NEW INDEPENDENT POWER PRODUCTION mercury allowances, as the case may be, al- tion of the owner or operator of any unit, the FACILITY.—The term ‘new independent power located for the immediate next year to meet Administrator may make appropriate base- line adjustments for accidents, strikes, dis- production facility’ means a facility that— the applicable requirement to hold such al- ‘‘(A) is used for the generation of electric lowances equal to the petitioned year’s emis- ruptions of fuel supplies, failure of equip- ment, other causes beyond the reasonable energy, 80 percent or more of which is sold at sions. wholesale; ‘‘(c) PRESIDENTIAL WAIVER.—Notwith- control of the owner or operator of the unit ‘‘(B) in nonrecourse project-financed (as standing subsection (a) or any other provi- that caused prolonged outages. such term is defined by the Secretary of En- sion of this Act, The President of the United ‘‘(B) For any other nonutility unit that is ergy within 3 months of the date of the en- States shall have authority to temporarily not included in the NAPAP Emissions Inven- actment of the Clean Air Act Amendments of grant waivers from emission limitations tory, Version 2, or a corrected data base as 1990); and under sections 412, 422, 432, 452, and 472, as established by the Administrator pursuant ‘‘(C) is a new unit required to hold allow- the case may be, if the President determines to paragraph (3), the baseline shall be the an- ances under this subpart. that the reliability of any portion of na- nual average quantity, in mmBtu consumed ‘‘(13) INDUSTRIAL SOURCE.—The term ‘indus- tional electricity supply or national security in fuel by that unit, as calculated pursuant trial source’ means a unit that does not is imperiled. to a method which the Administrator shall prescribe by regulation to be promulgated serve a generator that produces electricity, a ‘‘PART B—SULFUR DIOXIDE EMISSION not later than 18 months after November 15, ‘nonutility unit’ as defined in this section, or REDUCTIONS 1990. a process source. ‘‘Subpart 1—Acid Rain Program ‘‘(C) The Administrator shall, upon appli- ‘‘(14) LIFE-OF-THE-UNIT, FIRM POWER CON- ‘‘SEC. 411. DEFINITIONS. cation or on his own motion, by December TRACTUAL ARRANGEMENT.—The term ‘life-of- ‘‘For purposes of this subpart and subpart 31, 1991, supplement data needed in support the-unit, firm power contractual arrange- 1 of part B: of this subpart and correct any factual errors ment’ means a unit participation power sales ‘‘(1) ACTUAL 1985 EMISSION RATE.—The term in data from which affected phase II units’ agreement under which a utility or indus- ‘actual 1985 emission rate’, for electric util- baselines or actual 1985 emission rates have trial customer reserves, or is entitled to re- ity units means the annual sulfur dioxide or been calculated. Corrected data shall be used ceive, a specified amount or percentage of nitrogen oxides emission rate in pounds per for purposes of issuing allowances under this capacity and associated energy generated by million Btu as reported in the 1985 National subpart. Such corrections shall not be sub- a specified generating unit (or units) and Acid Precipitation Assessment Program ject to judicial review, nor shall the failure pays its proportional amount of such unit’s (NAPAP) Emissions Inventory, Version 2, of the Administrator to correct an alleged total costs, pursuant to a contract either— National Utility Reference File (NURF). For factual error in such reports be subject to ju- ‘‘(A) for the life of the unit; nonutility units, the term ‘actual 1985 emis- dicial review. ‘‘(B) for a cumulative term of no less than sion rate’ means the annual sulfur dioxide or ‘‘(5) BASIC PHASE II ALLOWANCE ALLOCA- 30 years, including contracts that permit an nitrogen oxides emission rate in pounds per TIONS.—The term ‘basic phase II allowance election for early termination; or million Btu as reported in the NAPAP Emis- allocations’ means: ‘‘(C) for a period equal to or greater than 25 sion Inventory, Version 2. ‘‘(A) For calendar years 2000 through 2009 years or 70 percent of the economic useful ‘‘(2) ALLOWABLE 1985 EMISSIONS RATE.—The inclusive, allocations of allowances made by life of the unit determined as of the time the term ‘allowable 1985 emissions rate’ means a the Administrator pursuant to section 412 unit was built, with option rights to pur- federally enforceable emissions limitation and subsections (b)(1), (3), and (4); (c)(1), (2), chase or release some portion of the capacity for sulfur dioxide or oxides of nitrogen, ap- (3), and (5); (d)(1), (2), (4), and (5); (e); (f); and associated energy generated by the unit plicable to the unit in 1985 or the limitation (g)(1), (2), (3), (4), and (5); (h)(1); (i); and (j) of (or units) at the end of the period. applicable in such other subsequent year as section 414. ‘‘(15) NEW UNIT.—The term ‘new unit’ determined by the Administrator if such a ‘‘(B) For each calendar year beginning in means a unit that commences commercial limitation for 1985 does not exist. Where the 2010, allocations of allowances made by the operation on or after November 15, 1990. emissions limitation for a unit is not ex- Administrator pursuant to section 412 and ‘‘(16) NONUTILITY UNIT.—The term ‘non- pressed in pounds of emissions per million subsections (b)(1), (3), and (4); (c)(1), (2), (3), utility unit’ means a unit other than a util- Btu, or the averaging period of that emis- and (5); (d)(1), (2), (4), and (5); (e); (f); (g)(1), ity unit. sions limitation is not expressed on an an- (2), (3), (4), and (5); (h)(1) and (3); (i); and (j) ‘‘(17) PHASE II BONUS ALLOWANCE ALLOCA- nual basis, the Administrator shall calculate of section 414. TIONS.—The term ‘phase II bonus allowance the annual equivalent of that emissions limi- ‘‘(6) CAPACITY FACTOR.—The term ‘capacity allocations’ means, for calendar year 2000 tation. factor’ means the ratio between the actual through 2009, inclusive, and only for such ‘‘(3) ALTERNATIVE METHOD OF COMPLI- electric output from a unit and the potential years, allocations made by the Adminis- ANCE.—The term ‘alternative method of com- electric output from that unit. trator pursuant to section 412, subsections pliance’ means a method of compliance in ‘‘(7) COMMENCED.—The term ‘commenced’ (a)(2), (b)(2), (c)(4), (d)(3) (except as otherwise accordance with one or more of the following as applied to construction of any new elec- provided therein), and (h)(2) of section 414, authorities— tric utility unit means that an owner or op- and section 415. ‘‘(A) a substitution plan submitted and ap- erator has undertaken a continuous program ‘‘(18) QUALIFYING PHASE I TECHNOLOGY.— proved in accordance with subsections 413(b) of construction or that an owner or operator The term ‘qualifying phase I technology’ and (c); or has entered into a contractual obligation to means a technological system of continuous ‘‘(B) a phase I extension plan approved by undertake and complete, within a reasonable emission reduction which achieves a 90 per- the Administrator under section 413(d), using time, a continuous program of construction. cent reduction in emissions of sulfur dioxide qualifying phase I technology as determined ‘‘(8) COMMENCED COMMERCIAL OPERATION.— from the emissions that would have resulted by the Administrator in accordance with The term ‘commenced commercial oper- from the use of fuels which were not subject that section. ation’ with regard to a unit means the start to treatment prior to combustion.

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‘‘(19) REPOWERING.—The term ‘repowering’ December 31, 2007, it shall be unlawful for a ‘‘(2) if such multiple holders have expressly means replacement of an existing coal-fired new utility unit to emit an annual tonnage provided for a different distribution of allow- boiler with one of the following clean coal of sulfur dioxide in excess of the number of ances by contract, that allowances under technologies: atmospheric or pressurized flu- allowances to emit held for the unit by the this subpart and the proceeds of transactions idized bed combustion, integrated gasifi- unit’s owner or operator. involving such allowances will be deemed to cation combined cycle, magneto- ‘‘(2) PROHIBITION OF EXCEEDING SOURCE AL- be held or distributed in accordance with the hydrodynamics, direct and indirect coal- LOWANCES.—Starting January 1, 2008, a new contract. fired turbines, integrated gasification fuel utility unit shall be subject to the prohibi- A passive lessor, or a person who has an equi- cells, or as determined by the Administrator, tion in subsection (c)(3). table interest through such lessor, whose in consultation with the Secretary of En- ‘‘(3) ELIGIBILITY FOR ALLOCATION OF SULFUR rental payments are not based, either di- ergy, a derivative of one or more of these DIOXIDE ALLOWANCES.—New utility units rectly or indirectly, upon the revenues or in- technologies, and any other technology capa- shall not be eligible for an allocation of sul- come from the affected unit shall not be ble of controlling multiple combustion emis- fur dioxide allowances under subsection deemed to be a holder of a legal, equitable, sions simultaneously with improved boiler or (a)(1), unless the unit is subject to the provi- leasehold, or contractual interest for the generation efficiency and with significantly sions of subsection (g)(2) or (3) of section 414. purpose of holding or distributing allowances greater waste reduction relative to the per- New utility units may obtain allowances as provided in this subsection, during either formance of technology in widespread com- from any person, in accordance with this the term of such leasehold or thereafter, un- mercial use as of November 15, 1990. title. The owner or operator of any new util- less expressly provided for in the leasehold ‘‘(20) RESERVE.—The term ‘reserve’ means ity unit in violation of subsection (b)(1) or agreement. Except as otherwise provided in any bank of allowances established by the subsection(c)(3) shall be liable for fulfilling this subsection, where all legal or equitable Administrator under this subpart. the obligations specified in section 406. title to or interest in an affected unit is held ‘‘(21) UTILITY UNIT.— ‘‘(c) PROHIBITIONS.— by a single person, the certification shall ‘‘(A) IN GENERAL.—The term ‘utility unit’ ‘‘(1) IN GENERAL.—It shall be unlawful for state that all allowances under this subpart means— any person to hold, use, or transfer any al- received by the unit are deemed to be held ‘‘(i) a unit that serves a generator located lowance allocated under this subpart, except for that person. in any State and that produces electricity in accordance with regulations promulgated for sale; or by the Administrator. ‘‘SEC. 413. PHASE I SULFUR DIOXIDE REQUIRE- ‘‘(ii) a unit that, during 1985, served a gen- ‘‘(2) PROHIBITION OF EXCEEDING UNIT ALLOW- MENTS. erator located in any State and that pro- ANCES.—For any year 1995 through 2007, it ‘‘(a) EMISSION LIMITATIONS.— duced electricity for sale. shall be unlawful for any affected unit to ‘‘(1) ALLOCATION.—After January 1, 1995, ‘‘(B) EXCLUSIONS.— emit sulfur dioxide in excess of the number each source that includes one or more af- ‘‘(i) IN GENERAL.—Notwithstanding sub- of allowances held for that unit for that year fected units listed in table A is an affected paragraph (A), a unit described in subpara- by the owner or operator of the unit. source under this section. After January 1, graph (A) that— ‘‘(3) PROHIBITION OF EXCEEDING SOURCE AL- 1995, it shall be unlawful for any affected ‘‘(I) was in commercial operation during LOWANCES.—Starting January 1, 2008, it shall unit (other than an eligible phase I unit 1985; but be unlawful for the affected units at a source under section 413(d)(2)) to emit sulfur dioxide ‘‘(II) did not during 1985, serve a generator to emit a total amount of sulfur dioxide dur- in excess of the tonnage limitation stated as in any State that produced electricity for ing the year in excess of the number of al- a total number of allowances in table A for sale lowances held for the source for that year by phase 1; unless— shall not be a utility unit for purposes of the owner or operator of the source. ‘‘(A) the emissions reduction requirements this subpart. ‘‘(4) EFFECT ON OTHER EMISSION LIMITA- applicable to such unit have been achieved ‘‘(i) UNITS THAT COGENERATE STEAM AND TIONS.—Upon the allocation of allowances pursuant to subsection (b) or (d); or ELECTRICITY.—A unit that cogenerates steam under this subpart, the prohibition in para- ‘‘(B) the owner or operator of such unit and electricity is not a ‘utility unit’ for pur- graphs (2) and (3) shall supersede any other holds allowances to emit not less than the poses of this subpart unless the unit is con- emission limitation applicable under this unit’s total annual emissions, except that, structed for the purpose of supplying, or subpart to the units for which such allow- after January 1, 2000, the emissions limita- commences construction after November 15, ances are allocated. tions established in this section shall be su- ‘‘(d) LIMITATION ON REGULATIONS.—In order 1990 and supplies more than one-third of its perseded by those established in section 414. to ensure electricity reliability, regulations potential electric output capacity of more The owner or operator of any unit in viola- establishing a system for issuing, recording, than 25 megawatts electrical output to any tion of this section be fully liable for such and tracking allowances under section 403(b) utility power distribution system for sale. violation including, but not limited to, li- and this subpart shall not prohibit or affect ability for fulfilling the obligations specified ‘‘SEC. 412. ALLOWANCE ALLOCATION. temporary increases and decreases in emis- ‘‘(a) IN GENERAL.—Except as provided in sions within utility systems, power pools, or in section 406. sections 414(a)(2), 415(a)(3), and 416, beginning utilities entering into allowance pool agree- ‘‘(2) DETERMINATION.—Not later than De- January 1, 2000, the Administrator shall not ments, that result from their operations, in- cember 31, 1991, the Administrator shall de- allocate annual emission allowances for sul- cluding emergencies and central dispatch, termine the total tonnage of reductions in fur dioxide from utility units in excess of 8.90 and such temporary emissions increases and the emissions of sulfur dioxide from all util- million tons except that the Administrator decreases shall not require transfer of allow- ity units in calendar year 1995 that will shall not take into account unused allow- ances among units nor shall it require re- occur as a result of compliance with the ances carried forward by owners and opera- cording. The owners or operators of such emissions limitation requirements of this tors of affected units or by other persons units shall act through a designated rep- section, and shall establish a reserve of al- holding such allowances, following the year resentative. Notwithstanding the preceding lowances equal in amount to the number of for which they were allocated. If necessary sentence, the total tonnage of emissions in tons determined thereby not to exceed a to meeting the restrictions imposed in the any calendar year (calculated at the end total of 3.50 million tons. In making such a preceding sentence, the Administrator shall thereof) from all units in such a utility sys- determination, the Administrator shall com- reduce, pro rata, the basic phase II allowance tem, power pool, or allowance pool agree- pute for each unit subject to the emissions allocations for each unit subject to the re- ments shall not exceed the total allowances limitation requirements of this section the quirements of section 414. Subject to the pro- for such units for the calendar year con- difference between— visions of section 417, the Administrator cerned, including for calendar years after ‘‘(A) the product of its baseline multiplied shall allocate allowances for each affected 2007, allowances held for such units by the by the lesser of each unit’s allowable 1985 until at an affected source annually, as pro- owner or operator of the sources where the emissions rate and its actual 1985 emissions vided in paragraphs (2) and (3) and section units are located. rate, divided by 2,000; and 404. Except as provided in sections 416, the ‘‘(e) INTEREST IN AFFECTED UNITS.—Where ‘‘(B) the product of each unit’s baseline removal of an existing affected unit or there are multiple holders of a legal or equi- multiplied by 2.50 lbs/mmBtu divided by source from commercial operation at any table title to, or a leasehold interest in, an 2,000, and sum the computations. The Admin- time after November 15, 1990 (whether before affected unit, or where a utility or industrial istrator shall adjust the foregoing calcula- or after January 1, 1995, or January 1, 2000), customer purchases power from an affected tion to reflect projected calendar year 1995 shall not terminate or otherwise affect the unit (or units) under life-of-the-unit, firm utilization of the units subject to the emis- allocation of allowances pursuant to section power contractual arrangements, the certifi- sions limitations of this subpart that the Ad- 413 or 414 to which the unit is entitled. Prior cate of representation required under section ministrator finds would have occurred in the to June 1, 1998, the Administrator shall pub- 404(f) shall state— absence of the imposition of such require- lish a revised final statement of allowance ‘‘(1) that allowances under this subpart and ments. Pursuant to subsection (d), the Ad- allocations, subject to the provisions of sec- the proceeds of transactions involving such ministrator shall allocate allowances from tion 414(a)(2). allowances will be deemed to be held or dis- the reserve established hereunder until the ‘‘(b) NEW UTILITY UNITS.— tributed in proportion to each holder’s legal, earlier of such time as all such allowances in ‘‘(1) PROHIBITION OF EXCEEDING UNIT ALLOW- equitable, leasehold, or contractual reserva- the reserve are allocated or December 31, ANCES.—After January 1, 2000 and through tion or entitlement; or 1999.

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‘‘(3) ADDITIONAL ALLOCATIONS.—In addition ide in excess of the emissions limitation pro- tion or all approved proposals have been to allowances allocated pursuant to para- vided for in the approved substitution permit acted upon. If no allowances remain avail- graph (1), in each calendar year beginning in and plan unless the owner or operator of able in the reserve for further allocation be- 1995 and ending in 1999, inclusive, the Admin- each unit governed by the permit and ap- fore all proposals have been acted upon by istrator shall allocate for each unit on table proved substitution plan holds allowances to the Administrator, any pending proposals A that is located in the States of Illinois, In- emit not less than the unit’s total annual shall be disapproved. The Administrator diana, or Ohio (other than units at Kyger emissions. The owner or operator of any shall calculate allowances equal to— Creek, Clifty Creek and Joppa Steam), allow- original or substitute affected unit operated ‘‘(A) the difference between the lesser of ances in an amount equal to 200,000 multi- in violation of this subsection shall be fully the average annual emissions in calendar plied by the unit’s pro rata share of the total liable for such violation, including liability years 1988 and 1989 or the projected emissions number of allowances allocated for all units for fulfilling the obligations specified in sec- tonnage for calendar year 1995 of each eligi- on table A in the 3 States (other than units tion 406. If a substitution proposal is dis- ble phase I extension unit, as designated at Kyger Creek, Clifty Creek, and Joppa approved, the Administrator shall allocate under paragraph (3), and the product of the Steam) pursuant to paragraph (1). Such al- allowances to the original affected unit or unit’s baseline multiplied by an emission lowances shall be excluded from the calcula- units in accordance with subsection (a). rate of 2.50 lbs/mmBtu, divided by 2,000; tion of the reserve under paragraph (2). ‘‘(d) ELIGIBLE PHASE I EXTENSION UNITS.— ‘‘(B) the difference between the lesser of ‘‘(b) SUBSTITUTIONS.—The owner or oper- ‘‘(1) IN GENERAL.—The owner or operator of the average annual emissions in calendar ator of an affected unit under subsection (a) any affected unit subject to an emissions years 1988 and 1989 or the projected emissions may include in its section 404 permit appli- limitation requirement under this section tonnage for calendar year 1996 of each eligi- cation and proposed compliance plan a pro- may petition the Administrator in its permit ble phase I extension unit, as designated posal to reassign, in whole or in part, the af- application under section 404 for an exten- under paragraph (3), and the product of the fected unit’s sulfur dioxide reduction re- sion of 2 years of the deadline for meeting unit’s baseline multiplied by an emission quirements to any other unit(s) under the such requirement, provided that the owner rate of 2.50 lbs/mmBtu, divided by 2,000; and control of such owner or operator. Such pro- or operator of any such unit holds allow- ‘‘(C) the amount by which (i) the product posal shall specify— ances to emit not less than the unit’s total of each unit’s baseline multiplied by an ‘‘(1) the designation of the substitute unit annual emissions for each of the 2 years of emission rate of 1.20 lbs/mmBtu, divided by or units to which any part of the reduction the period of extension. To qualify for such 2,000, exceeds (ii) the tonnage level specified obligations of subsection (a) shall be re- an extension, the affected unit must either under subparagraph (E) of paragraph (2) of quired, in addition to, or in lieu of, any origi- employ a qualifying phase I technology, or this subsection multiplied by a factor of 3. nal affected units designated under such sub- transfer its phase I emissions reduction obli- ‘‘(5) ALLOCATION OF INITIAL ALLOWANCES.— section; gation to a unit employing a qualifying Each eligible phase I extension unit shall re- ‘‘(2) the original affected unit’s baseline, phase I technology. Such transfer shall be ceive allowances determined under sub- the actual and allowable 1985 emissions rate accomplished in accordance with a compli- section (a)(1) or (c) of this section. In addi- for sulfur dioxide, and the authorized annual ance plan, submitted and approved under tion, for calendar year 1995, the Adminis- allowance allocation stated in table A; section 404, that shall govern operations at trator shall allocate to each eligible phase I ‘‘(3) calculation of the annual average ton- all units included in the transfer, and that extension unit, from the allowance reserve nage for calendar years 1985, 1986, and 1987, specifies the emissions reduction require- created pursuant to subsection (a)(2), allow- emitted by the substitute unit or units, ments imposed pursuant to this title. ances equal to the difference between the based on the baseline for each unit, as de- ‘‘(2) REQUIREMENTS FOR EXTENSION PRO- lesser of the average annual emissions in cal- fined in section 411(4), multiplied by the less- POSALS.—Such extension proposal shall— endar years 1988 and 1989 or its projected er of the unit’s actual or allowable 1985 emis- ‘‘(A) specify the unit or units proposed for emission tonnage for calendar year 1995 and sions rate; designation as an eligible phase I extension the product of the unit’s baseline multiplied ‘‘(4) the emissions rates and tonnage limi- unit; by an emission rate of 2.50 lbs/mmBtu, di- tations that would be applicable to the origi- ‘‘(B) provide a copy of an executed con- vided by 2,000. In calendar year 1996, the Ad- nal and substitute affected units under the tract, which may be contingent upon the Ad- ministrator shall allocate for each eligible substitution proposal; ministrator approving the proposal, for the unit, from the allowance reserve created pur- ‘‘(5) documentation, to the satisfaction of design engineering, and construction of the suant to subsection (a)(2), allowances equal the Administrator, that the reassigned ton- qualifying phase I technology for the exten- to the difference between the lesser of the nage limits will, in total, achieve the same sion unit, or for the unit or units to which average annual emissions in calendar years or greater emissions reduction than would the extension unit’s emission reduction obli- 1988 and 1989 or its projected emissions ton- have been achieved by the original affected gation is to be transferred; nage for calendar year 1996 and the product unit and the substitute unit or units without ‘‘(C) specify the unit’s or units’ baselines, of the unit’s baseline multiplied by an emis- such substitution; and actual 1985 emissions rates, allowable 1985 sion rate of 2.50 lbs/mmBtu, divided by 2,000. ‘‘(6) such other information as the Admin- emissions rates, and projected utilizations It shall be unlawful for any source or unit istrator may require. for calendar years 1995 through 1999; subject to an approved extension plan under ‘‘(c) ADMINISTRATOR’S ACTION ON SUBSTI- ‘‘(D) require CEMS on both the eligible this subsection to emit sulfur dioxide in ex- TUTION PROPOSALS.— phase I extension unit or units and the trans- cess of the emissions limitations provided ‘‘(1) IN GENERAL.—The Administrator shall fer unit or units beginning no later than Jan- for in the permit and approved extension take final action on such substitution pro- uary 1, 1995; and plan, unless the owner or operator of each posal in accordance with section 404(c) if the ‘‘(E) specify the emission limitation and unit governed by the permit and approved substitution proposal fulfills the require- number of allowances expected to be nec- plan holds allowances to emit not less than ments of this subsection. The Administrator essary for annual operation after the quali- the unit’s total annual emissions. may approve a substitution proposal in fying phase I technology has been installed. ‘‘(6) ALLOCATION OF ADDITIONAL ALLOW- whole or in part and with such modifications ‘‘(3) APPROVAL OR DISAPPROVAL.—The Ad- ANCES.—In addition to allowances specified or conditions as may be consistent with the ministrator shall review and take final ac- in paragraph (4), the Administrator shall al- orderly functioning of the allowance system tion on each extension proposal in order of locate for each eligible phase I extension and which will ensure the emissions reduc- receipt, consistent with section 404, and for unit employing qualifying phase I tech- tions contemplated by this title. If a pro- an approved proposal shall designate the nology, for calendar years 1997, 1998, and 1999, posal does not meet the requirements of sub- unit or units as an eligible phase I extension additional allowances, from any remaining section (b), the Administrator shall dis- unit. The Administrator may approve an ex- allowances in the reserve created pursuant approve it. The owner or operator of a unit tension proposal in whole or in part, and to subsection (a)(2), following the reduction listed in table A shall not substitute another with such modifications or conditions as in the reserve provided for in paragraph (4), unit or units without the prior approval of may be necessary, consistent with the or- not to exceed the amount by which (A) the the Administrator. derly functioning of the allowance system, product of each eligible unit’s baseline times ‘‘(2) ISSUANCE OF PERMITS.—Upon approval and to ensure the emissions reductions con- an emission rate of 1.20 lbs/mmBtu, divided of a substitution proposal, each substitute templated by the subpart. by 2,000 exceeds (B) the tonnage level speci- unit, and each source with such unit, shall be ‘‘(4) DETERMINING THE AVAILABILITY OF AL- fied under subparagraph (E) of paragraph (2) deemed affected under this title, and the Ad- LOCATIONS.—In order to determine the num- of this subsection. ministrator shall issue a permit to the origi- ber of proposals eligible for allocations from ‘‘(7) DEDUCTION FROM ANNUAL ALLOWANCE nal and substitute affected source and unit the reserve under subsection (a)(2) and the ALLOCATIONS.—After January 1, 1997, in addi- in accordance with the approved substitution number of the allowances remaining avail- tion to any liability under this Act, includ- plan and section 404. The Administrator able after each proposal is acted upon, the ing under section 406, if any eligible phase I shall allocate allowances for the original and Administrator shall reduce the total number extension unit employing qualifying phase I substitute affected units in accordance with of allowances remaining available in the re- technology or any transfer unit under this the approved substitution proposal pursuant serve by the number of allowances cal- subsection emits sulfur dioxide in excess of to section 412. It shall be unlawful for any culated according to subparagraph (A), (B), the annual tonnage limitation specified in source or unit that is allocated allowances and (C) until either no allowances remain the extension plan, as approved in paragraph pursuant to this section to emit sulfur diox- available in the reserve for further alloca- (2) of this subsection, the Administrator

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00223 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S330 CONGRESSIONAL RECORD — SENATE January 24, 2005 shall, in the calendar year following such ex- this section) and part of a utility system ‘‘(i) the quantity of fossil fuel consumed by cess, deduct allowances equal to the amount that includes one or more affected units the unit (in mmBtu) in the prior year multi- of such excess from such unit’s annual allow- under section 414 for reductions in the emis- plied by— ance allocation. sions of sulfur dioxide made during the pe- ‘‘(ii) the lesser of— ‘‘(e) EARLY REDUCTIONS.— riod 1995–1999 if the unit meets the require- ‘‘(I) 2.50, or ‘‘(1) IN GENERAL.—In the case of a unit that ments of this subsection and the require- ‘‘(II) the most stringent emission rate (in receives authorization from the Governor of ments of the preceding sentence, except that lbs per mmBtu) applicable to the unit under the State in which such unit is located to for the purposes of applying this subsection the applicable implementation plan— make reductions in the emissions of sulfur to any such unit, the prior year concerned as divided by 2,000 exceeds dioxide prior to calendar year 1995 and that specified below, shall be any year after Janu- is part of a utility system that meets the fol- ‘‘(B) the unit’s actual tonnage of sulfur di- ary 1, 1995 but prior to January 1, 2000. lowing requirements— oxide emission for the prior year concerned. ‘‘(2) LIMITATIONS.—In the case of an af- ‘‘(A) the total coal-fired generation within Allowances allocated under this subsection fected unit under this section described in the utility system as a percentage of total for units may be allocated only for emission system generation decreased by more than 20 subparagraph (A), the allowances allocated reductions achieved as a result of physical percent between January 1, 1980, and Decem- under this subsection for early reductions in changes or changes in the method of oper- ber 31, 1985; and any prior year may not exceed the amount ation made after November 15, 1990, includ- ‘‘(B) the weighted capacity factor of all which (A) the product of the unit’s baseline ing changes in the type or quantity of fossil coal-fired units within the utility system multiplied by the unit’s 1985 actual sulfur di- fuel consumed. averaged over the period from January 1, oxide emission rate (in lbs per mmBtu), di- ‘‘(3) NO BASIS FOR EXCUSED NONPERFORM- 1985, through December 31, 1987, was below 50 vided by 2,000 exceeds (B) the allowances ANCE.—In no event shall the provisions of percent, the Administrator shall allocate al- specified for such unit in table A. In the case this paragraph be interpreted as an event of lowances under this paragraph for the unit of an affected unit under section 414, the al- force majeure or a commercial imprac- pursuant to this subsection. The Adminis- lowances awarded under this subsection for ticability or in any other way as a basis for trator shall allocate allowances for a unit early reductions in any prior year may not excused nonperformance by a utility system that is an affected unit pursuant to section exceed the amount by which— under a coal sales contract in effect before 414 (but is not also an affected unit under ‘‘(A) the product of— November 15, 1990. ‘‘TABLE A—AFFECTED SOURCES AND UNITS IN PHASE I AND THEIR SULFUR DIOXIDE ALLOWANCES (TONS)

Phase I State Plant name Generator allowances

Alabama ...... Colbert ...... 1 13,570 2 15,310 3 15,400 4 15,410 5 37,180 E.C. Gaston ...... 1 18,100 2 18,540 3 18,310 4 19,280 5 59,840 Florida ...... Big Bend ...... 1 28,410 2 27,100 3 26,740 Crist ...... 6 19,200 7 31,680 Georgia ...... Bowen ...... 1 56,320 2 54,770 3 71,750 4 71,740 Hammond ...... 1 8,780 2 9,220 3 8,910 4 37,640 J. McDonough ...... 1 19,910 2 20,600 Wansley ...... 1 70,770 2 65,430 Yates ...... 1 7,210 2 7,040 3 6,950 4 8,910 5 9,410 6 24,760 7 21,480 Illinois ...... Baldwin ...... 1 42,010 2 44,420 3 42,550 Coffeen ...... 1 11,790 2 35,670 Grand Tower ...... 4 5,910 Hennepin ...... 2 18,410 Joppa Steam ...... 1 12,590 2 10,770 3 12,270 4 11,360 5 11,420 6 10,620 Kincaid ...... 1 31,530 2 33,810 Meredosia ...... 3 13,890 Vermilion ...... 2 8,880 Indiana ...... Bailly ...... 7 11,180 8 15,630 Breed ...... 1 18,500 Cayuga ...... 1 33,370 2 34,130 Clifty Creek ...... 1 20,150 2 19,810 3 20,410 4 20,080 5 19,360 6 20,380 E.W. Stout ...... 5 3,880 6 4,770 7 23,610 F.B. Culley ...... 2 4,290 3 16,970 F.E. Ratts ...... 1 8,330 2 8,480 Gibson ...... 1 40,400 2 41,010 3 41,080 4 40,320 H.T. Pritchard ...... 6 5,770

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Phase I State Plant name Generator allowances

Michigan City ...... 12 23,310 Petersburg ...... 1 16,430 2 32,380 R. Gallagher ...... 1 6,490 2 7,280 3 6,530 4 7,650 Tanners Creek ...... 4 24,820 Wabash River ...... 1 4,000 2 2,860 3 3,750 5 3,670 6 12,280 Warrick ...... 4 26,980 Iowa ...... Burlington ...... 1 10,710 Des Moines ...... 7 2,320 George Neal ...... 1 1,290 M.L. Kapp ...... 2 13,800 Prairie Creek ...... 4 8,180 Riverside ...... 5 3,990 Kansas ...... Quindaro ...... 2 4,220 Kentucky ...... Coleman ...... 1 11,250 2 12,840 3 12,340 Cooper ...... 1 7,450 2 15,320 E.W. Brown ...... 1 7,110 2 10,910 3 26,100 Elmer Smith ...... 1 6,520 2 14,410 Ghent ...... 1 28,410 Green River ...... 4 7,820 H.L. Spurlock ...... 1 22,780 Henderson II ...... 1 13,340 2 12,310 Paradise ...... 3 59,170 Shawnee ...... 10 10,170 Maryland ...... Chalk Point ...... 1 21,910 2 24,330 C.P. Crane ...... 1 10,330 2 9,230 Morgantown ...... 1 35,260 2 38,480 Michigan ...... J.H. Campbell ...... 1 19,280 2 23,060 Minnesota ...... High Bridge ...... 6 4,270 Mississippi ...... Jack Watson ...... 4 17,910 5 36,700 Missouri ...... Asbury ...... 1 16,190 James River ...... 5 4,850 Labadie ...... 1 40,110 2 37,710 3 40,310 4 35,940 Montrose ...... 1 7,390 2 8,200 3 10,090 New Madrid ...... 1 28,240 2 32,480 Sibley ...... 3 15,580 Sioux ...... 1 22,570 2 23,690 Thomas Hill ...... 1 10,250 2 19,390 New Hampshire ...... Merrimack ...... 1 10,190 2 22,000 New Jersey ...... B.L. England ...... 1 9,060 2 11,720 New York ...... Dunkirk ...... 3 12,600 4 14,060 Greenidge ...... 4 7,540 Milliken ...... 1 11,170 2 12,410 Northport ...... 1 19,810 2 24,110 3 26,480 Port Jefferson ...... 3 10,470 4 12,330 Ohio ...... Ashtabula ...... 5 16,740 Avon Lake ...... 8 11,650 9 30,480 Cardinal ...... 1 34,270 2 38,320 Conesville ...... 1 4,210 2 4,890 3 5,500 4 48,770 Eastlake ...... 1 7,800 2 8,640 3 10,020 4 14,510 5 34,070 Edgewater ...... 4 5,050 Gen. J.M. Gavin ...... 1 79,080 2 80,560 Kyger Creek ...... 1 19,280 2 18,560 3 17,910 4 18,710 5 18,740 Miami Fort ...... 5 760 6 11,380 7 38,510 Muskingum River ...... 1 14,880 2 14,170 3 13,950 4 11,780 5 40,470 Niles ...... 1 6,940 2 9,100

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Phase I State Plant name Generator allowances

Picway ...... 5 4,930 R.E. Burger ...... 3 6,150 4 10,780 5 12,430 W.H. Sammis ...... 5 24,170 6 39,930 7 43,220 W.C. Beckjord ...... 5 8,950 6 23,020 Pennsylvania ...... Armstrong ...... 1 14,410 2 15,430 Brunner Island ...... 1 27,760 2 31,100 3 53,820 Cheswick ...... 1 39,170 Conemaugh ...... 1 59,790 2 66,450 Hatfield’s Ferry ...... 1 37,830 2 37,320 3 40,270 Martins Creek ...... 1 12,660 2 12,820 Portland ...... 1 5,940 2 10,230 Shawville ...... 1 10,320 2 10,320 3 14,220 4 14,070 Sunbury ...... 3 8,760 4 11,450 Tennessee ...... Allen ...... 1 15,320 2 16,770 3 15,670 Cumberland ...... 1 86,700 2 94,840 Gallatin ...... 1 17,870 2 17,310 3 20,020 4 21,260 Johnsonville ...... 1 7,790 2 8,040 3 8,410 4 7,990 5 8,240 6 7,890 7 8,980 8 8,700 9 7,080 10 7,550 West Virginia ...... Albright ...... 3 12,000 Fort Martin ...... 1 41,590 2 41,200 Harrison ...... 1 48,620 2 46,150 3 41,500 Kammer ...... 1 18,740 2 19,460 3 17,390 Mitchell ...... 1 43,980 2 45,510 Mount Storm ...... 1 43,720 2 35,580 3 42,430 Wisconsin ...... Edgewater ...... 4 24,750 La Crosse/Genoa ...... 3 22,700 Nelson Dewey ...... 1 6,010 2 6,680 N. Oak Creek ...... 1 5,220 2 5,140 3 5,370 4 6,320 Pulliam ...... 8 7,510 S. Oak Creek ...... 5 9,670 6 12,040 7 16,180 8 15,790

‘‘(f) ENERGY CONSERVATION AND RENEWABLE ‘‘(A) IN GENERAL.—The regulations under energy are quantified in accordance with ENERGY.— paragraph (4) of this subsection shall provide regulations promulgated by the Adminis- ‘‘(1) DEFINITIONS.—As used in this sub- that for each ton of sulfur dioxide emissions trator under this subsection. section: avoided by an electric utility, during the ap- ‘‘(iii)(I) Such electric utility has adopted ‘‘(A) QUALIFIED ENERGY CONSERVATION plicable period, through the use of qualified and is implementing a least cost energy con- MEASURE.—The term ‘qualified energy con- energy conservation measures or qualified servation and electric power plan which servation measure’ means a cost effective renewable energy, the Administrator shall evaluates a range of resources, including new measure, as identified by the Administrator allocate a single allowance to such electric power supplies, energy conservation, and re- in consultation with the Secretary of En- utility, on a first-come-first-served basis newable energy resources, in order to meet ergy, that increases the efficiency of the use from the Conservation and Renewable En- expected future demand at the lowest system of electricity provided by an electric utility ergy Reserve established under subsection cost. to its customers. (g), up to a total of 300,000 allowances for al- ‘‘(II) The qualified energy conservation ‘‘(B) QUALIFIED RENEWABLE ENERGY.—The location from such Reserve. measures or qualified renewable energy, or term ‘qualified renewable energy’ means en- ‘‘(B) REQUIREMENTS FOR ISSUANCE.—The both, are consistent with that plan. ergy derived from biomass, solar, geo- Administrator shall allocate allowances to ‘‘(III) In the case of electric utilities sub- thermal, or wind as identified by the Admin- an electric utility under this subsection only ject to the jurisdiction of a State regulatory istrator in consultation with the Secretary if all of the following requirements are met: authority such plan shall have been approved of Energy. ‘‘(i) Such electric utility is paying for or by such authority. For electric utilities not ‘‘(C) ELECTRIC UTILITY.—The term ‘electric participating in the qualified energy con- subject to the jurisdiction of a State regu- utility’ means any person, State agency, or servation measures or qualified renewable latory authority such plan shall have been Federal agency, which sells electric energy. energy. approved by the Administrator. ‘‘(2) ALLOWANCES FOR EMISSIONS AVOIDED ‘‘(ii) The emissions of sulfur dioxide avoid- ‘‘(iv) In the case of qualified energy con- THROUGH ENERGY CONSERVATION AND RENEW- ed through the use of qualified energy con- servation measures undertaken by a State ABLE ENERGY.— servation measures or qualified renewable regulated electric utility, the Secretary of

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Energy has certified that the State regu- ‘‘(G) PROHIBITIONS.— allocate allowances for the unit pursuant to latory authority with jurisdiction over the ‘‘(i) No allowances shall be allocated under section 412(a), this section, and section 414 electric rates of such electric utility has es- this subsection for the implementation of (as basic phase II allowance allocations) in tablished rates and charges which ensure programs that are exclusively informational an amount equal to the baseline selected that the net income of such electric utility or educational in nature. multiplied by the lower of the average an- after implementation of specific cost effec- ‘‘(ii) No allowances shall be allocated for nual emission rate for such unit in 1989, or tive energy conservation measures is at least energy conservation measures or renewable 1.0 lbs/mmBtu. Such allowance allocation as high as such net income would have been energy that were operational before January shall be in lieu of any allocation of allow- if the energy conservation measures had not 1, 1992. ances under this section and section 414. been implemented. Upon the date of any ‘‘(3) SAVINGS PROVISION.—Nothing in this ‘‘SEC. 414. PHASE II SULFUR DIOXIDE REQUIRE- such certification by the Secretary of En- subsection precludes a State or State regu- MENTS. ergy, all allowances which, but for this para- latory authority from providing additional ‘‘(a) APPLICABILITY.— graph, would have been allocated under sub- incentives to utilities to encourage invest- ‘‘(1) BASIC PHASE II ALLOWANCE ALLOCA- paragraph (B) before such date, shall be allo- ment in demand-side resources. TIONS.—After January l, 2000, each existing cated to the electric utility. This clause is ‘‘(4) REGULATIONS.—The Administrator utility unit as provided below is subject to not a requirement for qualified renewable shall implement this subsection under 40 the limitations or requirements of this sec- energy. CFR part 73 (2002), amended as appropriate tion. Each utility unit subject to an annual ‘‘(v) Such utility or any subsidiary of the by the Administrator. Such regulations shall sulfur dioxide tonnage emission limitation utility’s holding company owns or operates list energy conservation measures and re- under this section is an affected unit under at least one affected unit. newable energy sources which may be treat- this subpart. Each source that includes one ‘‘(C) PERIOD OF APPLICABILITY.—Allowances ed as qualified energy conservation measures or more affected units is an affected source. under this subsection shall be allocated only and qualified renewable energy for purposes In the case of an existing unit that was not with respect to kilowatt hours of electric en- of this subsection. Allowances shall only be in operation during calendar year 1985, the ergy saved by qualified energy conservation allocated if all requirements of this sub- emission rate for a calendar year after 1985, measures or generated by qualified renew- section and the rules promulgated to imple- as determined by the Administrator, shall be able energy after January 1, 1992, and before ment this subsection are complied with. The used in lieu of the 1985 rate. the earlier of (i) December 31, 2000, or (ii) the Administrator shall review the determina- ‘‘(2) BASIC PHASE II BONUS ALLOWANCE ALLO- date on which any electric utility steam gen- tions of each State regulatory authority CATIONS.—In addition to basic phase II allow- erating unit owned or operated by the elec- under this subsection to encourage consist- ance allocations, in each year beginning in tric utility to which the allowances are allo- ency from electric utility and from State-to- cated becomes subject to this subpart (in- calendar year 2000 and ending in calendar State in accordance with the Administra- year 2009, inclusive, the Administrator shall cluding those sources that elect to become tor’s rules. The Administrator shall publish affected by this title, pursuant to section allocate up to 530,000 phase II bonus allow- and make available to the public the find- ances pursuant to subsections (b)(2), (c)(4), 417). ings of this review no less than annually. ‘‘(D) DETERMINATION OF AVOIDED EMIS- (d)(3) (A) and (B), and (h)(2) of this section ‘‘(g) CONSERVATION AND RENEWABLE EN- and section 415. SIONS.— ERGY RESERVE.—The Administrator shall es- ‘‘(i) APPLICATION.—In order to receive al- ‘‘(3) ADDITIONAL ALLOWANCE ALLOCATIONS tablish a Conservation and Renewable En- FOR CERTAIN AFFECTED SOURCES AND UNITS.— lowances under this subsection, an electric ergy Reserve under this subsection. Begin- utility shall make an application which— In addition to basic phase II allowances allo- ning on January 1, 1995, the Administrator cations and phase II bonus allowance alloca- ‘‘(I) designates the qualified energy con- may allocate from the Conservation and Re- tions, beginning January 1, 2000, the Admin- servation measures implemented and the newable Energy Reserve an amount equal to istrator shall allocate for each unit listed on qualified renewable energy sources used for a total of 300,000 allowances for emissions of table A in section 413 (other than units at purposes of avoiding emissions; sulfur dioxide pursuant to section 411. In Kyger Creek, Clifty Creek, and Joppa ‘‘(II) calculates, in accordance with sub- order to provide 300,000 allowances for such paragraphs (F) and (G), the number of tons of reserve, in each year beginning in calendar Stream) and located in the States of Illinois, emissions avoided by reason of the imple- year 2000 and until calendar year 2009, inclu- Indiana, Ohio, Georgia, Alabama, Missouri, mentation of such measures or the use of sive, the Administrator shall reduce each Pennsylvania, West Virginia, Kentucky, or such renewable energy sources; and unit’s basic phase II allowance allocation on Tennessee allowances in an amount equal to ‘‘(III) demonstrates that the requirements the basis of its pro rata share of 30,000 allow- 50,000 multiplied by the unit’s pro rata share of subparagraph (B) have been met. ances. Notwithstanding the prior sentence, if of the total number of basic allowances allo- ‘‘(ii) APPROVAL.—Such application for al- allowances remain in the reserve on January cated for all units listed on table A (other lowances by a State-regulated electric util- 1, 2010, the Administrator shall allocate such than units at Kyger Creek, Clifty Creek, and ity shall require approval by the State regu- allowances for affected units under section Joppa Stream). Allowances allocated pursu- latory authority with jurisdiction over such 414 on a pro rata basis. For purposes of this ant to this paragraph shall not be subject to electric utility. The authority shall review subsection, for any unit subject to the emis- the 8,900,000 ton limitation in section 412(a). the application for accuracy and compliance sions limitation requirements of section 414, ‘‘(b) UNITS EQUAL TO, OR ABOVE, 75 MWE with this subsection and the rules under this the term ‘pro rata basis’ refers to the ratio AND 1.20 LBS/MMBTU.— subsection. Electric utilities whose retail which the reductions made in such unit’s al- ‘‘(1) BASIC PHASE II ALLOWANCE ALLOCA- rates are not subject to the jurisdiction of a lowances in order to establish the reserve TIONS.—Except as otherwise provided in State regulatory authority shall apply di- under this subsection bears to the total of paragraph (3), after January 1, 2000, it shall rectly to the Administrator for such ap- such reductions for all such units. be unlawful for any existing utility unit that proval. ‘‘(h) ALTERNATIVE ALLOWANCE ALLOCATION serves a generator with nameplate capacity ‘‘(E) AVOIDED EMISSIONS FROM QUALIFIED FOR UNITS IN CERTAIN UTILITY SYSTEMS WITH equal to, or greater, than 75 MWe and an ac- ENERGY CONSERVATION MEASURES.—For the OPTIONAL BASELINE.— tual 1985 emission rate equal to or greater purposes of this subsection, the emission ‘‘(1) OPTIONAL BASELINE FOR UNITS IN CER- than 1.20 lbs/mmBtu to exceed an annual sul- tonnage deemed avoided by reason of the im- TAIN SYSTEMS.—In the case of a unit subject fur dioxide tonnage emission limitation plementation of qualified energy conserva- to the emissions limitation requirements of equal to the product of the unit’s baseline tion measures for any calendar year shall be this section which (as of November 15, 1990)— multiplied by an emission rate equal to 1.20 a tonnage equal to the product of multi- ‘‘(A) has an emission rate below 1.0 lbs/ lbs/mmBtu, divided by 2,000, unless the plying— mmBtu, owner or operator of such unit holds allow- ‘‘(i) the kilowatt hours that would other- ‘‘(B) has decreased its sulfur dioxide emis- ances to emit not less than the unit’s total wise have been supplied by the utility during sions rate by 60 percent or greater since 1980, annual emissions or, for a year after 2007, un- such year in the absence of such qualified en- and less the owner or operator of the source that ergy conservation measures; by ‘‘(C) is part of a utility system which has includes such unit holds allowances to emit ‘‘(ii) 0.004, and dividing the product so de- a weighted average sulfur dioxide emissions not less than the total annual emissions of rived by 2,000. rate for all fossil fueled-fired units below 1.0 all affected units at the source. ‘‘(F) AVOIDED EMISSIONS FROM THE USE OF lbs/mmBtu, at the election to the owner or ‘‘(2) RESERVE ALLOWANCES.—In addition to QUALIFIED RENEWABLE ENERGY.—The emis- operator of such unit, the unit’s baseline allowances allocated pursuant to paragraph sions tonnage deemed avoided by reason of may be calculated— (1) and section 412(a) as basic phase II allow- the use of qualified renewable energy by an ‘‘(i) as provided under section 411, or ance allocations, beginning January 1, 2000, electric utility for any calendar year shall be ‘‘(ii) by utilizing the unit’s average annual and for each calendar year thereafter until a tonnage equal to the product of multi- fuel consumption at a 60 percent capacity and including 2009, the Administrator shall plying— factor. Such election shall be made no later allocate annually for each unit subject to ‘‘(i) the actual kilowatt hours generated than March 1, 1991. the emissions limitation requirements of by, or purchased from, qualified renewable ‘‘(2) ALLOWANCE ALLOCATION.—Whenever a paragraph (1) with an actual 1985 emissions energy; by unit referred to in paragraph (1) elects to rate greater than 1.20 lbs/mmBtu and less ‘‘(ii) 0.004, and dividing the product so de- calculate its baseline as provided in clause than 2.50 lbs/mmBtu and a baseline capacity rived by 2,000. (ii) of paragraph (1), the Administrator shall factor of less than 60 percent, allowances

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00227 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S334 CONGRESSIONAL RECORD — SENATE January 24, 2005 from the reserve created pursuant to sub- 1.20 lbs/mmBtu (excluding units subject to ‘‘(C) has large units (greater than 400 MWe) section (a)(2) in an amount equal to 1.20 lbs/ section 111 of the Act or to a federally en- all of which have difficult or very difficult mmBtu multiplied by 50 percent of the dif- forceable emissions limitation for sulfur di- FGD Retrofit Cost Factors (according to the ference, on a Btu basis, between the unit’s oxide equivalent to an annual rate of less Emissions and the FGD Retrofit Feasibility baseline and the unit’s fuel consumption at a than 1.20 lbs/mmBtu) and which is a unit at the 200 Top Emitting Generating Stations, 60 percent capacity factor. owned by a utility operating company whose prepared for the United States Environ- ‘‘(3) PROHIBITION.—After January 1, 2000, it aggregate nameplate fossil fuel steam-elec- mental Protection Agency on January 10, shall be unlawful for any existing utility tric capacity is, as of December 31, 1989, less 1986) to exceed an annual sulfur dioxide emis- unit with an actual 1985 emissions rate equal than 250 MWe, to exceed an annual sulfur di- sions tonnage limitation equal to the prod- to or greater than 1.20 lbs/mmBtu whose an- oxide tonnage emissions limitation equal to uct of its baseline multiplied by an emis- nual average fuel consumption during 1985, the product of the unit’s baseline multiplied sions rate of 2.5 lbs/mmBtu, divided by 2,000, 1986, and 1987 on a Btu basis exceeded 90 per- by the lesser of its actual 1985 emissions rate unless the owner or operator holds allow- cent in the form of lignite coal which is lo- or its allowable 1985 emissions rate, divided ances to emit not less than the unit’s total cated in a State in which, as of July 1, 1989, by 2,000, unless the owner or operator of such annual emissions, for a year after 2007, or the no county or portion of a county was des- unit holds allowances to emit not less than owner or operator of the source that includes ignated nonattainment under section 107 of the unit’s total annual emissions, for a year such unit holds allowances to emit not less this Act for any pollutant subject to the re- after 2007, or the owner or operator of the than the total annual emissions of all af- quirements of section 109 of this Act to ex- source that includes such unit holds allow- fected units at the source. After January 1, ceed an annual sulfur dioxide tonnage limi- ances to emit not less than the total annual 2010, it shall be unlawful for each unit sub- tation equal to the product of the unit’s emissions of all affected units at the source. ject to the emissions limitation require- baseline multiplied by the lesser of the unit’s ‘‘(3) STEAM-ELECTRIC CAPACITY BETWEEN 250 ments of this paragraph to exceed an annual actual 1985 emissions rate or its allowable AND 450 MWE.—After January 1, 2000 it shall emissions tonnage limitation equal to the 1985 emissions rate, divided by 2,000, unless be unlawful for any existing utility unit with project of its baseline multiplied by an emis- the owner or operator of such unit holds al- a nameplate capacity below 75 MWe and an sions rate of 1.20 lbs/mmBtu, divided by 2,000, lowances to emit not less than the unit’s actual 1985 emissions rate equal to, or great- unless the owner or operator holds for use al- total annual emissions or, for a year after er than, 1.20 lbs/mmBtu which became oper- lowances to emit not less than the unit’s 2007, unless the owner or operator of the ational on or before December 31, 1965, which total annual emissions for a year after 2007, source that includes such unit holds allow- is owned by a utility operating company or the owner or operator of the source that ances to emit not less than the total annual with, as of December 31, 1989, a total fossil includes such unit holds allowances to emit emissions of all affected units at the source. fuel steam-electric generating capacity not less than the total annual emissions of ‘‘(4) ANNUAL ALLOWANCE ALLOCATIONS.— greater than 250 MWe, and less than 450 MWe all affected units at the source. After January 1, 2000, the Administrator which serves fewer than 78,000 electrical cus- ‘‘(d) COAL-FIRED UNITS BELOW 1.20 LBS/ shall allocate annually for each unit, subject tomers as of November 15, 1990, to exceed an MMBTU.— to the emissions limitation requirements of annual sulfur dioxide emissions tonnage lim- ‘‘(1) RATE LESS THAN 0.60 LBS/MMBTU.—After paragraph (1), which is located in a State itation equal to the product of its baseline January 1, 2000, it shall be unlawful for any with an installed electrical generating ca- multiplied by the lesser of its actual or al- existing coal-fired utility unit the lesser of pacity of more than 30,000,000 kw in 1988 and lowable 1985 emission rate, divided by 2,000, whose actual or allowable 1985 sulfur dioxide for which was issued a prohibition order or a unless the owner or operator holds allow- emissions rate is less than 0.60 lbs/mmBtu to proposed prohibition order (from burning ances to emit not less than the units total exceed an annual sulfur dioxide tonnage oil), which unit subsequently converted to annual emissions or, for a year after 2007, un- emission limitation equal to the product of coal between January 1, 1980, and December less the owner or operator of the source that the unit’s baseline multiplied by— 31, 1985, allowances equal to the difference includes such unit holds allowances to emit ‘‘(A) the lesser of 0.60 lbs/mmBtu or the between (A) the product of the unit’s annual not less than the total annual emissions of unit’s allowable 1985 emissions rate; and fuel consumption, on a Btu basis, at a 65 per- all affected units at the source. After Janu- ‘‘(B) a numerical factor of 120 percent, di- cent capacity factor multiplied by the lesser ary 1, 2010, it shall be unlawful for each unit vided by 2,000, unless the owner or operator of its actual or allowable emissions rate dur- subject to the emissions limitation require- of such unit holds allowances to emit not ing the first full calendar year after conver- ments of this paragraph to exceed an annual less than the unit’s total annual emissions sion, divided by 2,000, and (B) the number of emissions tonnage limitation equal to the for a year after 2007, or the owner or operator allowances allocated for the unit pursuant to product of its baseline multiplied by an of the source that includes such unit holds paragraph (1): Provided, That the number of emissions rate of 1.20 lbs/mmBtu, divided by allowances to emit not less than the total allowances allocated pursuant to this para- 2,000, unless the owner or operator holds al- annual emissions of all affected units at the graph shall not exceed an annual total of five lowances to emit not less than the unit’s source. thousand. If necessary to meeting the re- total annual emissions for a year after 2007, ‘‘(2) RATE BETWEEN 0.60 AND 1.20 LBS/ striction imposed in the preceding sentence or the owner or operator of the source that MMBTU.—After January 1, 2000, it shall be un- the Administrator shall reduce, pro rata, the includes such unit holds allowances to emit lawful for any existing coal-fired utility unit annual allowances allocated for each unit not less than the total annual emissions of the lesser of whose actual or allowable 1985 under this paragraph. all affected units at the source. sulfur dioxide emissions rate is equal to, or ‘‘(c) COAL OR OIL-FIRED UNITS BELOW 75 ‘‘(4) RESERVE ALLOWANCES.—In addition to greater than, 0.60 lbs/mmBtu and less than MWE AND ABOVE 1.20 LBS/MMBTU.— allowances allocated pursuant to paragraph 1.20 lbs/mmBtu to exceed an annual sulfur di- ‘‘(1) STEAM-ELECTRIC CAPACITY EQUAL TO OR (1) and section 412(a) as basic phase II allow- oxide tonnage emissions limitation equal to GREATER THAN 250MWE.—Except as otherwise ance allocations, beginning January 1, 2000, the product of the unit’s baseline multiplied provided in paragraph (3), after January 1, and for each calendar year thereafter until by (A) the lesser of its actual 1985 emissions 2000, it shall be unlawful for a coal or oil- and including 2009, inclusive, the Adminis- rate or its allowable 1985 emissions rate, and fired existing utility unit that serves a gen- trator shall allocate annually for each unit (B) a numerical factor of 120 percent, divided erator with nameplate capacity of less than subject to the emissions limitation require- by 2,000, unless the owner or operator of such 75 MWe and an actual 1985 emission rate ments of paragraph (1) with an actual 1985 unit holds allowances to emit not less than equal to, or greater than, 1.20 lbs/mmBtu and emissions rate equal to, or greater than, 1.20 the unit’s total annual emissions for a year which is a unit owned by a utility operating lbs/mmBtu and less than 2.50 lbs/mmBtu and after 2007, or the owner or operator of the company whose aggregate nameplate fossil a baseline capacity factor of less than 60 per- source that includes such unit holds allow- fuel steam-electric capacity is, as of Decem- cent, allowances from the reserve created ances to emit not less than the total annual ber 31, 1989, equal to, or greater than, 250 pursuant to subsection (a)(2) in an amount emissions of all affected units at the source. MWe to exceed an annual sulfur dioxide equal to 1.20 lbs/mmBtu multiplied by 50 per- ‘‘(3) RESERVE ALLOWANCE.— emissions limitation equal to the product of cent of the difference, on a Btu basis, be- ‘‘(A) IN GENERAL.—In addition to allow- the unit’s baseline multiplied by an emission tween the unit’s baseline and the unit’s fuel ances allocated pursuant to paragraph (1) rate equal to 1.20 lbs/mmBtu, divided by 2,000 consumption at a 60 percent capacity factor. and section 412(a) as basic phase II allowance unless the owner or operator of such unit ‘‘(5) CERTAIN ELECTRIC UTILITY SYSTEMS.— allocations, at the election of the designated holds allowances to emit not less than the After January 1, 2000, it shall be unlawful for representative of the operating company, be- unit’s total annual emissions for a year after any existing unit with a nameplate capacity ginning January 1, 2000, and for each cal- 2007, or the owner or operator of the source below 75 MWe and an actual 1985 emissions endar year thereafter until and including that includes such unit holds allowances to rate equal to, or greater than, 1.20 lbs/ 2009, the Administrator shall allocate annu- emit not less than the total annual emis- mmBtu which is part of an electric utility ally for each unit subject to the emissions sions of all affected units at the source. system which, as of November 15, 1990— limitation requirements of paragraph (1) al- ‘‘(2) STEAM-ELECTRIC CAPACITY LESS THAN ‘‘(A) has at least 20 percent of its fossil-fuel lowances from the reserve created pursuant 250MWE.—After January 1, 2000, it shall be un- capacity controlled by flue gas to subsection (a)(2) in an amount equal to lawful for a coal or oil-fired existing utility desulfurization devices; the amount by which— unit that serves a generator with nameplate ‘‘(B) has more than 10 percent of its fossil- ‘‘(i) the product of the lesser of 0.60 lbs/ capacity of less than 75 MWe and an actual fuel capacity consisting of coal-fired units of mmBtu or the unit’s allowable 1985 emis- 1985 emission rate equal to, or greater than, less than 75 MWe; and sions rate multiplied by the unit’s baseline

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00228 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S335 adjusted to reflect operation at a 60 percent includes such unit holds allowances to emit of this subsection, provided that the owner capacity factor, divided by 2,000, exceeds not less than the total annual emissions of or operator of a unit listed on table B may ‘‘(ii) the number of allowances allocated all affected units at the source. elect an allocation of allowances under an- for the unit pursuant to paragraph (1) and ‘‘(f) OIL AND GAS-FIRED UNITS LESS THAN other paragraph of this subsection in lieu of section 403(a)(1) as basic phase II allowance 0.60 LBS/MMBTU.— an allocation under this paragraph. ‘‘(1) IN GENERAL.—After January 1, 2000, it allocations. ‘‘(3) UNITS THAT COMMENCED COMMERCIAL shall be unlawful for any oil and gas-fired ex- ‘‘(B) UNITS SUBJECT TO CERTAIN LIMITA- OPERATION BETWEEN OCTOBER 1, 1990, AND DE- isting utility unit the lesser of whose actual TIONS.—In addition to allowances allocated CEMBER 31, 1992.—Beginning January 1, 2000, or allowance 1985 emission rate is less than pursuant to paragraph (2) and section 412(a) the Administrator shall allocate to the 0.60 lbs/mmBtu and whose average annual as basic phase II allowance allocations, at owner or operator of any utility unit that fuel consumption during the period 1980 the election of the designated representative commences commercial operation, or has through 1989 on a Btu basis was 90 percent or of the operating company, beginning Janu- commenced commercial operation, on or less in the form of natural gas to exceed an ary 1, 2000, and for each calendar year there- after October 1, 1990, but not later than De- annual sulfur dioxide tonnage emissions lim- after until and including 2009, the Adminis- cember 31, 1992, allowances in an amount itation equal to the product of the unit’s trator shall allocate annually for each unit equal to the product of the unit’s annual fuel subject to the emissions limitation require- baseline multiplied by— consumption, on a Btu basis, at a 65 percent ments of paragraph (2) allowances from the ‘‘(A) the lesser of 0.60 lbs/mmBtu or the capacity factor multiplied by the lesser of reserve created pursuant to subsection (a)(2) unit’s allowance 1985 emissions, and 0.30 lbs/mmBtu or the unit’s allowable sulfur in an amount equal to the amount by ‘‘(B) a numerical factor of 120 percent, di- dioxide emission rate (converted, if nec- which— vided by 2,000, unless the owner or operator essary, to pounds per mmBtu), divided by ‘‘(i) the product of the lesser of the unit’s of such unit holds allowances to emit not 2,000. actual 1985 emissions rate or its allowable less than the unit’s total annual emissions, ‘‘(4) UNITS THAT COMMENCED COMMERCIAL 1985 emissions rate multiplied by the unit’s for a year after 2007, or the owner or operator OPERATION BETWEEN JANUARY 1, 1993, AND DE- baseline adjusted to reflect operation at a 60 of the source that includes such unit holds CEMBER 31, 1995.—Beginning January 1, 2000, percent capacity factor, divided by 2,000; ex- allowances to emit not less than the total the Administrator shall allocate to the ceeds annual emissions of all affected units at the owner or operator of any utility unit that ‘‘(ii) the number of allowances allocated source. has commenced construction before Decem- for the unit pursuant to paragraph (2) and ‘‘(2) ADDITIONAL ALLOCATION.—In addition ber 31, 1990 and that commences commercial section 412(a) as basic phase II allowance al- to allowances allocated pursuant to para- operation between January 1, 1993, and De- locations. graph (1) as basic phase II allowance alloca- cember 31, 1995, allowances in an amount ‘‘(C) ELECTION BY OPERATING COMPANY.—An tions and section 412(a), beginning January equal to the product of the unit’s annual fuel operating company with units subject to the 1, 2000, the Administrator shall, in the case consumption, on a Btu basis, at a 65 percent emissions limitation requirements of this of any unit operated by a utility that fur- capacity factor multiplied by the lesser of subsection may elect the allocation of allow- nishes electricity, electric energy, steam, 0.30 lbs/mmBtu or the unit’s allowable sulfur ances as provided under subparagraphs (A) and natural gas within an area consisting of dioxide emission rate (converted, if nec- and (B). Such election shall apply to the an- a city and 1 contiguous county, and in the essary, to pounds per mmBtu), divided by nual allowance allocation for each and every case of any unit owned by a State authority, 2,000. unit in the operating company subject to the the output of which unit is furnished within ‘‘(5) UNITS THAT CONVERTED TO COAL FIRED emissions limitation requirements of this that same area consisting of a city and 1 OPERATION BETWEEN JANUARY 1, 1985, AND DE- subsection. The Administrator shall allocate contiguous county, the Administrator shall CEMBER 31, 1987.—After January 1, 2000, it allowances pursuant to subparagraphs (A) allocate for each unit in the utility its pro shall be unlawful for any existing utility and (B) only in accordance with this sub- rata share of 7,000 allowances and for each unit that has completed conversion from pre- paragraph. unit in the State authority its pro rata share dominantly gas fired existing operation to ‘‘(4) ALTERNATIVE ALLOCATION.—Notwith- of 2,000 allowances. coal fired operation between January 1, 1985, standing any other provision of this section, ‘‘(g) UNITS THAT COMMENCE COMMERCIAL and December 31, 1987, for which there has at the election of the owner or operator, OPERATION BETWEEN 1986 AND DECEMBER 31, been allocated a proposed or final prohibi- after January l, 2000, the Administrator shall 1995.— tion order pursuant to section 301(b) of the allocate in lieu of allocation, pursuant to ‘‘(1) IN GENERAL.—After January 1, 2000, it Powerplant and Industrial Fuel Use Act of paragraph (1), (2), (3), (5), or (6), allowances shall be unlawful for any utility unit that 1978 (42 U.S.C. 8301 et seq., repealed 1987) to for a unit subject to the emissions limitation has commenced commercial operation on or exceed an annual sulfur dioxide tonnage requirements of this subsection which com- after January 1, 1986, but not later than Sep- emissions limitation equal to the product of menced commercial operation on or after tember 30, 1990 to exceed an annual tonnage the unit’s annual fuel consumption, on a Btu January 1, 1981 and before December 31, 1985, emission limitation equal to the product of basis, at a 65 percent capacity factor multi- which was subject to, and in compliance the unit’s annual fuel consumption, on a Btu plied by the lesser of 1.20 lbs/mmBtu or the with, section 111 of the Act in an amount basis, at a 65-percent-capacity factor multi- unit’s allowable 1987 sulfur dioxide emissions equal to the unit’s annual fuel consumption, plied by the unit’s allowance 1985 sulfur diox- rate, divided by 2,000, unless the owner or op- on a Btu basis, at a 65-percent-capacity fac- ide emission rate (converted, if necessary, to erator of such unit has obtained allowances tor multiplied by the unit’s allowable 1985 pounds per mmBtu), divided by 2,000 unless equal to its actual emissions for a year after emissions rate, divided by 2,000. the owner or operator of such unit holds al- 2007, or the owner or operator of the source ‘‘(5) CLEAN COAL TECHNOLOGY DEMONSTRA- lowances to emit not less than the unit’s that includes such unit holds allowances to TION GRANT.—For the purposes of this sec- total annual emissions for a year after 2007, emit not less than the total annual emis- tion, in the case of an oil- and gas-fired unit or the owner or operator of the source that sions of all affected units at the source. which has been awarded a clean coal tech- includes such unit holds allowances to emit ‘‘(6) APPLICABILITY TO QUALIFYING SMALL nology demonstration grant as of January 1, not less than the total annual emissions of POWER PRODUCTION FACILITIES, QUALIFYING 1991, by the United States Department of En- all affected units at the source. COGENERATION FACILITIES, AND NEW INDE- ergy, beginning January 1, 2002, the Adminis- ‘‘(2) UNIT ALLOWANCES.—After January 1, PENDENT POWER PRODUCTION FACILITIES.—Un- trator shall allocate for the unit allowances 2000, the Administrator shall allocate allow- less the Administrator has approved a des- in an amount equal to the unit’s baseline ances pursuant to section 411 to each unit ignation of such facility under section 417, multiplied by 1.20 lbs/mmBtu, divided by which is listed in table B of this paragraph in the provisions of this subpart shall not apply 2,000. an annual amount equal to the amount spec- to a ‘qualifying small power production fa- ‘‘(e) OIL AND GAS-FIRED UNITS EQUAL TO OR ified in table B. cility’ or ‘qualifying cogeneration facility’ GREATER THAN 0.60 LBS/MMBTU AND LESS (within the meaning of section 3(17)(C) or THAN 1.20 LBS/MMBTU.—After January 1, 2000, ‘‘TABLE B it shall be unlawful for any existing oil and 3(18)(B) of the Federal Power Act) or to a gas-fired utility unit the lesser of whose ac- Unit Allowances ‘new independent power production facility’ if, as of November 15, 1990— tual or allowable 1985 sulfur dioxide emission Brandon Shores ...... 8,907 rate is equal to, or greater than, 0.60 lbs/ Miller 4 ...... 9,197 ‘‘(A) an applicable power sales agreement TNP One 2 ...... 4,000 has been executed; mmBtu, but less than 1.20 lbs/mmBtu to ex- Zimmer 1 ...... 18,458 ceed an annual sulfur dioxide tonnage limi- Spruce 1 ...... 7,647 ‘‘(B) the facility is the subject of a State tation equal to the product of the unit’s Clover 1 ...... 2,796 regulatory authority order requiring an elec- Clover 2 ...... 2,796 tric utility to enter into a power sales agree- baseline multiplied by (A) the lesser of the Twin Oak 2 ...... 1,760 unit’s allowable 1985 emissions rate or its ac- Twin Oak 1 ...... 9,158 ment with, purchase capacity from, or (for tual 1985 emissions rate and (B) a numerical Cross 1 ...... 6,401 purposes of establishing terms and condi- factor of 120 percent divided by 2,000, unless Malakoff 1 ...... 1,759 tions of the electric utility’s purchase of the owner or operator of such unit holds al- Notwithstanding any other paragraph of this power) enter into arbitration concerning, the lowances to emit not less than the unit’s subsection, for units subject to this para- facility; total annual emissions for a year after 2007, graph, the Administrator shall not allocate ‘‘(C) an electric utility has issued a letter or the owner or operator of the source that allowances pursuant to any other paragraph of intent or similar instrument committing

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00229 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S336 CONGRESSIONAL RECORD — SENATE January 24, 2005 to purchase power from the facility at a pre- located pursuant to this section and section shall allocate allowances to units subject to viously offered or lower price and a power 403(a)(1) as basic phase II allowance alloca- the provisions of this section pursuant to sales agreement is executed within a reason- tions, the Administrator shall allocate annu- section 414. able period of time; or ally for each unit subject to the emissions ‘‘SEC. 416. ELECTION FOR ADDITIONAL SOURCES. ‘‘(D) the facility has been selected as a limitation requirements of subsection ‘‘(a) APPLICABILITY.—The owner or oper- winning bidder in a utility competitive bid (b)(1)— ator of any unit that is not, nor will become, solicitation. ‘‘(A) the lesser of whose actual or allow- an affected unit under section 412(b), 413, or ‘‘(h) OIL- AND GAS-FIRED UNITS LESS THAN able 1980 emissions rate has declined by 50 414, that emits sulfur dioxide, may elect to 10 PERCENT OIL CONSUMED.— percent or more as of November 15, 1990; designate that unit or source to become an ‘‘(1) IN GENERAL.—After January 1, 2000, it ‘‘(B) whose actual emissions rate is less affected unit and to receive allowances under shall be unlawful for any oil- and gas-fired than 1.2 lbs/mmBtu as of January 1, 2000; this subpart. An election shall be submitted utility unit whose average annual fuel con- ‘‘(C) which commenced operation after to the Administrator for approval, along sumption during the period 1980 through 1989 January 1, 1970; with a permit application and proposed com- on a Btu basis exceeded 90 percent in the ‘‘(D) which is owned by a utility company pliance plan in accordance with section 404. form of natural gas to exceed an annual sul- whose combined commercial and industrial The Administrator shall approve a designa- fur dioxide tonnage limitation equal to the kilowatt-hour sales have increased by more tion that meets the requirements of this sec- than 20 percent between calendar year 1980 product of the unit’s baseline multiplied by tion, and such designated unit shall be allo- and November 15, 1990; and the unit’s actual 1985 emissions rate divided cated allowances, and be an affected unit for ‘‘(E) whose company-wide fossil-fuel sulfur by 2,000 unless the owner or operator of such purposes of this subpart. unit holds allowances to emit not less than dioxide emissions rate has declined 40 per- ‘‘(b) ESTABLISHMENT OF BASELINE.—The cent or more from 1980 to 1988, allowances in the unit’s total annual emissions for a year baseline for a unit designated under this sec- an amount equal to the difference between— after 2007, or the owner or operator of the tion shall be established by the Adminis- ‘‘(i) the number of allowances that would source that includes such unit holds allow- trator by regulation, based on fuel consump- be allocated for the unit pursuant to the ances to emit not less than the total annual tion and operating data for the unit for cal- emissions limitation requirements of sub- emissions of all affected units at the source. endar years 1985, 1986, and 1987, or if such section (b)(1) adjusted to reflect the unit’s ‘‘(2) RESERVE ALLOWANCES.—In addition to data is not available, the Administrator may annual average fuel consumption on a Btu allowances allocated pursuant to paragraph prescribe a baseline based on alternative rep- basis for any three consecutive years be- (1) and section 412(a) as basic phase II allow- resentative data. ance allocations, beginning January 1, 2000, tween 1980 and 1989 (inclusive) as elected by ‘‘(c) EMISSION LIMITATIONS.— and for each calendar year thereafter until the owner or operator; and ‘‘(1) ELECTIONS SUBMITTED BEFORE JANUARY ‘‘(ii) the number of allowances allocated and including 2009, the Administrator shall 1, 2002.—For a unit for which an election, for the unit pursuant to the emissions limi- allocate annually for each unit subject to along with a permit application and compli- tation requirements of subsection (b)(1): the emissions limitation requirements of ance plan, is submitted to the Administrator Provided, That the number of allowances al- paragraph (1) allowances from the reserve under paragraph (a) before January 1, 2002, located pursuant to this paragraph shall not created pursuant to subsection (a)(2) in an annual emissions limitations for sulfur diox- exceed an annual total of 5,000. If necessary amount equal to the unit’s baseline multi- ide shall be equal to the product of the base- to meeting the 5,000 allowance restriction plied by 0.050 lbs/mmBtu, divided by 2,000. line multiplied by the lesser of the unit’s imposed in the last clause of the preceding ‘‘(3) ADDITIONAL ALLOWANCES.—In addition 1985 actual or allowable emission rate in lbs/ sentence the Administrator shall reduce, pro to allowances allocated pursuant to para- mmBtu, or, if the unit did not operate in rata, the additional allowances allocated to graph (1) and section 412(a), beginning Janu- 1985, by the lesser of the unit’s actual or al- each unit pursuant to this paragraph. ary 1, 2010, the Administrator shall allocate lowable emission rate for a calendar year ‘‘(j) CERTAIN MUNICIPALLY OWNED POWER annually for each unit subject to the emis- after 1985 (as determined by the Adminis- PLANTS.—Beginning January 1, 2000, in addi- sions limitation requirements of paragraph trator); divided by 2,000. (1) allowances in an amount equal to the tion to allowances allocated pursuant to this ‘‘(2) ELECTIONS SUBMITTED AFTER JANUARY unit’s baseline multiplied by 0.050 lbs/ section and section 412(a) as basic phase II allowance allocations, the Administrator 1, 2002.—For a unit for which an election, mmBtu, divided by 2,000. along with a permit application and compli- ‘‘(i) UNITS IN HIGH GROWTH STATES.— shall allocate annually for each existing mu- ance plan, is submitted to the Administrator ‘‘(1) ANNUAL ALLOCATIONS.—In addition to nicipally owned oil and gas-fired utility unit under paragraph (a) on or after January 1, allowances allocated pursuant to this section with nameplate capacity equal to, or less 2002, annual emissions limitations for sulfur and section 412(a) as basic phase II allowance than, 40 MWe, the lesser of whose actual or dioxide shall be equal to the product of the allocations, beginning January 1, 2000, the allowable 1985 sulfur dioxide emission rate is baseline multiplied by the lesser of the unit’s Administrator shall allocate annually allow- less than 1.20 lbs/mmBtu, allowances in an 1985 actual or allowable emission rate in lbs/ ances for each unit, subject to an emissions amount equal to the product of the unit’s an- mmBtu, or, if the unit did not operate in limitation requirement under this section, nual fuel consumption on a Btu basis at a 60 1985, by the lesser of the unit’s actual or al- and located in a State that— percent capacity factor multiplied by the lowable emission rate for a calendar year ‘‘(A) has experienced a growth in popu- lesser of its allowable 1985 emission rate or its actual 1985 emission rate, divided by 2,000. after 1985 (as determined by the Adminis- lation in excess of 25 percent between 1980 trator); divided by 4,000. and 1988 according to State Population and ‘‘SEC. 415. ALLOWANCES FOR STATES WITH EMIS- SIONS RATES AT OR BELOW 0.80 LBS/ ‘‘(d) ALLOWANCES AND PERMITS.—The Ad- Household Estimates, With Age, Sex, and MMBTU. ministrator shall issue allowances to an af- Components of Change: 1981–1988 allocated by ‘‘(a) ELECTION OF GOVERNOR.—In addition fected unit under this section in an amount the United States Department of Commerce, to basic phase II allowance allocations, upon equal to the emissions limitation calculated and the election of the Governor of any State, under subsection (c), in accordance with sec- ‘‘(B) had an installed electrical generating with a 1985 statewide annual sulfur dioxide tion 412. Such allowance may be used in ac- capacity of more than 30,000,000 kw in 1988, in emissions rate equal to or less than, 0.80 lbs/ cordance with, and shall be subject to, the an amount equal to the difference between— mmBtu, averaged over all fossil fuel-fired provisions of section 412. Affected sources ‘‘(i) the number of allowances that would utility steam generating units, beginning under this section shall be subject to the re- be allocated for the unit pursuant to the January 1, 2000, and for each calendar year quirements of sections 404, 405, 406, and 412. emissions limitation requirements of this thereafter until and including 2009, the Ad- ‘‘(e) LIMITATION.—Any unit designated section applicable to the unit adjusted to re- ministrator shall allocate, in lieu of other under this section shall not transfer or bank flect the unit’s annual average fuel consump- phase 11 bonus allowance allocations, allow- allowances produced as a result of reduced tion on a Btu basis of any three consecutive ances from the reserve created pursuant to utilization or shutdown, except that, such al- calendar years between 1980 and 1989 (inclu- section 414(a)(2) to all such units in the State lowances may be transferred or carried for- sive) as elected by the owner or operator; in an amount equal to 125,000 multiplied by ward for use in subsequent years to the ex- and the unit’s pro rata share of electricity gen- tent that the reduced utilization or shut- erated in calendar year 1985 at fossil fuel- ‘‘(ii) the number of allowances allocated down results from the replacement of ther- fired utility steam units in all States eligi- for the unit pursuant to the emissions limi- mal energy from the unit designated under tation requirements of this section: ble for the election. ‘‘(b) NOTIFICATION OF ADMINISTRATOR.— this section, with thermal energy generated Provided, That the number of allowances al- Pursuant to section 412(a), each Governor of by any other unit or units subject to the re- located pursuant to this subsection shall not a State eligible to make an election under quirements of this subpart, and the des- exceed an annual total of 40,000. If necessary paragraph (a) shall notify the Administrator ignated unit’s allowances are transferred or to meeting the 40,000 allowance restriction of such election. In the event that the Gov- carried forward for use at such other replace- imposed under this subsection the Adminis- ernor of any such State fails to notify the ment unit or units. In no case may the Ad- trator shall reduce, pro rata, the additional Administrator of the Governor’s elections, ministrator allocate to a source designated annual allowances allocated to each unit the Administrator shall allocate allowances under this section allowances in an amount under this subsection. pursuant to section 414. greater than the emissions resulting from ‘‘(2) ADDITIONAL ALLOCATIONS.—Beginning ‘‘(c) ALLOWANCES AFTER JANUARY 1, 2010.— operation of the source in full compliance January 1, 2000, in addition to allowances al- After January 1, 2010, the Administrator with the requirements of this Act. No such

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00230 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S337 allowances shall authorize operation of a tors of the affected units at an affected sources, including units subject to section unit in violation of any other requirements source from whom allowances were withheld 414(g)(2), under authority of this section. For of this Act. under subsection (b). No funds transferred an existing source regulated under this sec- ‘‘(f) IMPLEMENTATION.—The Administrator from a purchaser to a seller of allowances tion, ‘standard of performance’ means a shall implement this section under 40 CFR under this paragraph shall be held by any of- standard which the Administrator deter- part 74 (2002), amended as appropriate by the ficer or employee of the United States or mines is applicable to that source and which Administrator. treated for any purpose as revenue to the reflects the degree of emission reduction ‘‘SEC. 417. AUCTIONS, RESERVE. United States or the Administrator. achievable through the application of the ‘‘(a) SPECIAL RESERVE OF ALLOWANCES.— ‘‘(B) RETURN.—At the end of each year, any best system of continuous emission reduc- For purposes of establishing the Special Al- allowances offered for sale but not sold at tion which (taking into consideration the lowance Reserve, the Administrator shall the auction shall be returned without cost of achieving such emission reduction, withhold— charge, on a pro rata basis, to the owner or and any nonair quality health and environ- ‘‘(1) 2.8 percent of the allocation of allow- operator of the affected units from whose al- mental impact and energy requirements) the ances for each year from 1995 through 1999 in- location the allowances were withheld. With Administrator determines has been ade- clusive; and 170 days after the date of enactment of the quately demonstrated for that category of ‘‘(2) 2.8 percent of the basic phase 11 allow- Clear Skies Act of 2005, any allowance with- sources. ‘‘(c) ELECTION.—Regulations promulgated ance allocation of allowances for each year held under paragraph (a)(2) but not offered under section 414(b) shall not prohibit a beginning in the year 2000; for sale at an auction shall be returned with- source from electing to become an affected which would (but for this subsection) be out charge, on a pro rata basis, to the owner unit under section 417. issued for each affected unit at an affected or operator of the affected units from whose ‘‘SEC. 419. TERMINATION. source. The Administrator shall record such allocation the allowances were withheld. ‘‘Starting January l, 2010, the owners or withholding for purposes of transferring the ‘‘(4) RECORDING BY EPA.—The Adminis- operators of affected units and affected fa- proceeds of the allowance sales under this trator shall record and publicly report the cilities under sections 412(b) and (c) and 416 subsection. The allowances so withheld shall nature, prices and results of each auction and shall no longer be subject to the require- be deposited in the Reserve under this sec- under this subsection, including the prices of ments of sections 412 through 417. tion. successful bids, and shall record the trans- ‘‘(b) AUCTION SALES.— fers of allowances as a result of each auction ‘‘Subpart 2—Clear Skies Sulfur Dioxide ‘‘(1) SUBACCOUNT FOR AUCTIONS.—The Ad- in accordance with the requirements of this Allowance Program ministrator shall establish an Auction Sub- section. The transfer of allowances at such ‘‘SEC. 421. DEFINITIONS. account in the Special Reserve established auction shall be recorded in accordance with ‘‘For purposes of this subpart— under this section. The Auction Subaccount the regulations promulgated by the Adminis- ‘‘(1) AFFECTED EGU.—The term ‘affected shall contain allowances to be sold at auc- trator under this subpart. EGU’ means— tion under this section in the amount of ‘‘(c) CHANGES IN AUCTIONS AND WITH- ‘‘(A) for a unit serving a generator before 150,000 tons per year for each year from 1995 HOLDING.—Pursuant to rulemaking after pub- the date of enactment of the Clear Skies Act through 1999, inclusive and 250,000 tons per lic notice and comment the Administrator of 2005, a unit in a State serving a generator year for each year from 2000 through 2009, in- may at any time after the year 1998 (in the with a nameplate capacity of greater than clusive. case of advance auctions) and 2005 (in the twenty-five megawatts that produced or pro- ‘‘(2) ANNUAL AUCTIONS.—Commencing in case of spot auctions) decrease the number of duces electricity for sale during 2002 or any 1993 and in each year thereafter until 2010, allowances withheld and sold under this sec- year thereafter, except for a cogeneration the Administrator shall conduct auctions at tion. unit that meets the criteria for qualifying which the allowances referred to in para- ‘‘(d) TERMINATION OF AUCTIONS.—Not later cogeneration facilities codified in section graph (1) shall be offered for sale in accord- than the commencement date of the sulfur 292.205 of title 18 of the Code of Federal Reg- ance with regulations promulgated by the dioxide allowance requirement under section ulations as issued on April 1, 2002 during 2002 Administrator. The allowances referred to in 422, the Administrator shall terminate the and each year thereafter; and paragraph (1) shall be offered for sale at auc- withholding of allowances and the auction ‘‘(B) for a unit commencing service of a tion in the amounts specified in table C. The sales under this section. Pursuant to regula- generator on or after the date of enactment auction shall be open to any person. A per- tions under this section, the Administrator of the Clear Skies Act of 2005, a unit in a son wishing to bid for such allowances shall may by delegation or contract provide for State serving a generator that produces elec- submit (by a date set by the Administrator) the conduct of sales or auctions under the tricity for sale during any year starting with to the Administrator (on a sealed bid sched- Administrator’s supervision by other depart- the year the unit commences service of a ule provided by the Administrator) offers to ments or agencies of the United States Gov- generator, except for a unit serving one or purchase specified numbers of allowances at ernment or by nongovernmental agencies, more generators with total nameplate capac- specified prices. Such regulations shall speci- groups, or organizations. ity of twenty-five megawatts or less, or a co- fy that the auctioned allowances shall be al- ‘‘(e) APPLICABLE LAW.—The Administrator generation unit that meets the criteria for located and sold on the basis of bid price, shall implement this section under 40 CFR qualifying cogeneration facilities codified in starting with the highest-priced bid and con- part 73 (2002), amended as appropriate by the section 292.205 of title 18 of the Code of Fed- eral Regulations as issued on April 1, 2002, tinuing until all allowances for sale at such Administrator. during each year starting with the year the auction have been allocated. The regulations ‘‘SEC. 418. INDUSTRIAL SULFUR DIOXIDE EMIS- SIONS. unit commences services of a generator. shall not permit that a minimum price be set ‘‘(a) REPORT.—Not later than January 1, for the purchase of withheld allowances. Al- Notwithstanding paragraphs (A) and (B), the 1995 and every 5 years thereafter, the Admin- lowances purchased at the auction may be term ‘affected EGU’ does not include a solid istrator shall transmit to the Congress a re- used for any purpose and at any time after waste incineration unit subject to section 129 port containing an inventory of national an- the auction, subject to the provisions of this or a unit for the treatment, storage, or dis- nual sulfur dioxide emissions from industrial subpart and subpart 2. posal of hazardous waste subject to section sources (as defined in section 411(11)), includ- 3005 of the Solid Waste Disposal Act. TABLE C—NUMBER OF ALLOWANCES AVAILABLE FOR ing units subject to section 414(g)(2), for all ‘‘(2) COAL-FIRED.—The term ‘coal-fired’ years for which data are available, as well as AUCTION with regard to a unit means, for purposes of the likely trend in such emission over the section 424, combusting coal or any coal-de- Spot auction Advance following twenty-year period. The reports rived fuel alone or in combination with any Year of sale (same year) auction shall also contain estimates of the actual amount of any other fuel in any year during emission reduction in each year resulting 1998 through 2002 or, for a unit that com- 1993 ...... 50,000 100,000 1994 ...... 50,000 100,000 from promulgation of the diesel fuel menced operation on or after January 1, 2003, 1995 ...... 50,000 100,000 desulfurization regulations under section 214. a unit designed to combust coal or any coal 1996 ...... 150,000 100,000 ‘‘(b) 5.60 MILLION TON CAP.—Whenever the derived fuel alone or in combination with 1997 ...... 150,000 100,000 inventory required by this section indicates 1998 ...... 150,000 100,000 any other fuel. 1999 ...... 150,000 100,000 that sulfur dioxide emissions from industrial ‘‘(3) EASTERN BITUMINOUS.—The term ‘East- 2000 ...... 125,000 125,000 sources, including units subject to section ern bituminous’ means bituminous that is 2001 ...... 125,000 125,000 414(g)(2), and may reasonably be expected to 2002 ...... 125,000 125,000 from a mine located in a State east of the 2003 ...... 125,000 0 reach levels greater than 5.60 million tons Mississippi River. 2004–2009 ...... 125,000 0 per year, the Administrator shall take such ‘‘(4) GENERAL ACCOUNT.—The term ‘general actions under the Act as may be appropriate account’ means an account in the Allowance ‘‘(3) PROCEEDS.— to ensure that such emissions do not exceed Tracking System under section 403(c) estab- ‘‘(A) TRANSFER.—Notwithstanding section 5.60 million tons per year. Such actions may lished by the Administrator for any person 3302 of title 31 of the United States Code or include the promulgation of new and revised under 40 CFR part 73.31(c) (2002), amended as any other provision of law, within 90 days of standards of performance for new sources, in- appropriate by the Administrator. receipt, the Administrator shall transfer the cluding units subject to section 414(g)(2), ‘‘(5) OIL-FIRED.—The term ‘oil-fired’ with proceeds from the auction under this section, under section 111(b), as well as promulgation regard to a unit means, for purposes of sec- on a pro rata basis, to the owners or opera- of standards of performance for existing tion 424, combusting fuel oil for more than 10

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00231 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S338 CONGRESSIONAL RECORD — SENATE January 24, 2005 percent of the unit’s total heat input, and at the facility and shall allocate to each gen- fined in section 402(5)(B) and converting to combusting no coal or coal-derived fuel, in eral account in the Allowance Tracking Sys- tons. any year during 1998 through 2002 or, for a tem the amount of sulfur dioxide allowances ‘‘(E) In the event that allocation demand unit that commenced operation on or after determined under clause (ii) for that general exceeds supply, the Administrator shall allo- January 1, 2003, a unit designed to combust account. cate allowances under subparagraph (A) giv- oil for more than 10 percent of the unit’s ‘‘(2)(A) 7 percent of the total amount of ing first priority to units qualifying under total heat input and not to combust any coal sulfur dioxide allowances allocated each year subparagraph (B), second priority to units or coal-derived fuel. under section 423 shall be allocated for units qualifying under subparagraph (C), and third ‘‘(6) UNIT ACCOUNT.—The term ‘unit ac- at a facility that are affected EGUs, but did priority to units qualifying under subpara- count’ means an account in the Allowance not receive sulfur dioxide allocations under graph (D). Allowances allocated under sub- Tracking System under section 403(c) estab- subpart 1 of this title. paragraph (D) shall be allocated to units on lished by the Administrator for any unit ‘‘(B) The Administrator shall allocate each a first come basis determined by date of unit under 40 CFR section 73.31 (a) and (b) (2002), year for the units under subparagraph (A) commencement of construction, provided amended as appropriate by the Adminis- that commenced operation before January 1, that such unit actually commences oper- trator. 2001, an amount of sulfur dioxide allowances ation. As such, allocations to units under ‘‘SEC. 422. APPLICABILITY. determined by: sub-paragraph (D) will not be reduced as a ‘‘(i) For such units at the facility that are ‘‘(a) PROHIBITION.—Starting January 1, result of new units commencing commercial coal-fired, multiplying 0.40 lb/mmBtu by the 2010, it shall be unlawful for the affected operation. total baseline heat input of such units and EGUs at a facility to emit a total amount of ‘‘(b) FAILURE TO PROMULGATE.— converting to tons. sulfur dioxide during the year in excess of ‘‘(1) ANNUAL NOTICE.—For each year 2010 ‘‘(ii) For such units at the facility that are the number of sulfur dioxide allowances held and thereafter, if the Administrator has not oil-fired, multiplying 0.20 lb/mmBtu by the for such facility for that year by the owner promulgated regulations, determining allo- total baseline heat input of such units and or operator of the facility. cations under subsection (a), each affected converting to tons. ‘‘(b) ALLOWANCES HELD.—Only sulfur diox- EGU shall comply with section 422 by pro- ‘‘(iii) For all such other units at the facil- ide allowances under section 423 shall be held viding annual notice to the permitting au- ity that are not covered by clause (i) or (ii), thority. Such notice shall indicate the in order to meet the requirements of sub- multiplying 0.05 lb/mmBtu by the total base- section (a). amount of allowances the affected EGU be- line heat input of such units and converting lieves it has for the relevant year and the ‘‘SEC. 423. LIMITATIONS ON TOTAL EMISSIONS. to tons. amount of sulfur dioxide emissions for such ‘‘For affected EGUs for 2010 and each year ‘‘(iv) If the total of the amounts for all fa- year. The amount of sulfur dioxide emissions thereafter, the Administrator shall allocate cilities under clauses (i), (ii), and (iii) ex- shall be determined using reasonable indus- sulfur dioxide allowances under section 424. ceeds the allocation amount under subpara- try accepted methods unless the Adminis- ‘‘TABLE A—TOTAL SO2 ALLOWANCES graph (A), multiplying the allocation trator has promulgated applicable moni- ALLOCATED FOR EGUS amount under subparagraph (A) by the ratio toring and alternative monitoring require- of the total of the amounts for the facility Year SO2 allowances ments. allocated under clauses (i), (ii), and (iii) to the total of ‘‘(2) RECONCILIATION.—Upon promulgation the amounts for all facilities under clause 2010 ...... 4,416,666 of regulations under subsection (a) deter- (i), (ii), and (iii). 2011–2012 ...... 4,416,667 mining the allocations for 2010 and there- ‘‘(v) Allocating to each facility the lesser 2013–2017 ...... 4,500,000 after, and promulgating regulations under of the total of the amounts for the facility 2018 and thereafter ...... 3,000,000. section 403(b) providing for the transfer of under clauses (i), (ii), and (iii) or, if the total sulfur dioxides and section 403(c) estab- ‘‘SEC. 424. EGU ALLOCATIONS. of the amounts for all facilities under lishing an Allowance Transfer System for ‘‘(a) IN GENERAL.—Not later than 3 years clauses (i), (ii), and (iii) exceeds the alloca- sulfur dioxide allowances, each unit’s emis- before the commencement date of the sulfur tion amount under subparagraph (A), the sions shall be compared to and reconciled to dioxide allowance requirement of section 422, amount under clause (iv). its actual allocations under the promulgated the Administrator shall promulgate regula- ‘‘(C) The Administrator shall allocate each regulations. Each unit will have nine (9) tions determining allocations of sulfur diox- year for units under subparagraph (A) that months to purchase any allowance shortfall ide allowances for affected EGUs for each commence commercial operation on or after through allowances purchased from other al- year during 2010 and thereafter. The regula- January l, 2001 and before January 1, 2005, an lowance holders or through direct sale. tions shall provide that: amount of sulfur dioxide allowances deter- ‘‘(1) 93 percent of the total amount of sul- ‘‘SEC. 425. DISPOSITION OF SULFUR DIOXIDE AL- mined by: LOWANCES ALLOCATED UNDER SUB- fur dioxide allowances shall be allocated to ‘‘(i) For such units at the facility that are PART 1. fossil-fuel-fired affected EGUs under section coal-fired or oil-fired, multiplying 0.19 lb/ ‘‘(a) REMOVAL FROM ACCOUNTS.—After allo- 424 shall be allocated by the Administrator mmBtu by the total baseline heat input of cating allowances under section 424(a)(1), the to individual EGUs as follows: such units and converting to tons. Administrator shall remove from the unit ‘‘(A) For each unit account and each gen- ‘‘(ii) For all such other units at the facility accounts and general accounts in the Allow- eral account in the Allowance Tracking Sys- that are not covered by clause (i), multi- ance Tracking System under section 403(c) tem, the Administrator shall determine the plying .005 lb/mmBtu by the total baseline and from the Special Allowances Reserve total amount of sulfur dioxide allowances al- heat input of such units and converting to under section 418 all sulfur dioxide allow- located under subpart 1 for 2010 and there- tons. ances allocated or deposited under subpart 1 after that are recorded, as of 12:00 noon, ‘‘(iii) If the total of the amounts for all fa- for 2010 or later. Eastern Standard time, on the date 180 days cilities under clauses (i) and (ii) exceeds the ‘‘(b) REGULATIONS.—The Administrator after enactment of the Clear Skies Act of allocation amount under subparagraph (A), shall promulgate regulations as necessary to 2005. The Administrator shall determine this multiplying the allocation amount under assure that the requirement to hold allow- amount in accordance with 40 CFR part 73 subparagraph (A) by the ratio of the total of ances under section 422 may be met using (2002), amended as appropriate by the Admin- the amounts for the facility under clauses (i) sulfur dioxide allowances allocated under istrator, except that the Administrator shall and (ii) to the total of the amounts for all fa- subpart 1 for 1995 through 2009. No part of apply a discount rate of 7 percent for each cilities under clauses (i) and (ii). this Act shall be construed to prevent use of year after 2010 to the amounts of sulfur diox- ‘‘(iv) Allocating to each facility the lesser unused pre-2010 allowances to meet the re- ide allowances allocated for 2011 or later. of the total of the amounts for the facility quirements of section 422. ‘‘(B) For each unit account and each gen- under clauses (i) and (ii) or, if the total of ‘‘SEC. 426. INCENTIVES FOR SULFUR DIOXIDE eral account in the Allowance Tracking Sys- the amounts for all facilities under clauses EMISSION CONTROL TECHNOLOGY. tem, the Administrator shall determine an (i) and (ii) exceeds the allocation amount ‘‘(a) RESERVE.—The Administrator shall amount of sulfur dioxide allowances equal to under subparagraph (A), the amount under establish a reserve of 250,000 sulfur dioxide the allocation amount under subparagraph clause (iv). The Administrator shall allocate allowances comprising 83,334 sulfur dioxide (A) multiplied by the ratio of the amount of to the facilities under paragraph (1) and this allowances for 2010, 83,333 sulfur dioxide al- sulfur dioxide allowances determined to be paragraph on a pro rata basis (based on the lowances for 2011, and 83,333 sulfur dioxide al- recorded in that account under clause (i) to allocations under those paragraphs) any al- lowances for 2012. the total amount of sulfur dioxide allow- lowances not allocated under this paragraph. ‘‘(b) APPLICATION.—Not later than 18 ances determined to be recorded in all unit ‘‘(D) The Administrator shall allocate each months after the enactment of the Clear accounts and general accounts in the Allow- year for units under subparagraph (A) that Skies Act of 2005, an owner or operator of an ance Tracking System under clause (i). commence commercial operation on or after affected EGU that commenced operation be- ‘‘(C) The Administrator shall allocate to January 1, 2005, an amount of sulfur dioxide fore 2001 and that during 2001 combusted each facility’s account in the Allowance allowances determined for each such unit at Eastern bituminous may submit an applica- Tracking System an amount of sulfur diox- the facility by multiplying the applicable tion to the Administrator for sulfur dioxide ide allowances equal to the total amount of National Emissions Standard under section allowances from the reserve under sub- sulfur dioxide allowances determined under 481 by the applicable ‘‘baseline heat input,’’ section (a). The application shall include clause (ii) for the unit accounts of the units considering fuel and combustion type, as de- each of the following:

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00232 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S339 ‘‘(1) A statement that the owner or oper- units are not subject to such standards, sepa- ‘‘(iv) based on fuel use and fuel heat con- ator will install and commence commercial rate monitoring shall be required for each tent data for the unit from fuel purchase or operation of specified sulfur dioxide control unit. use records, if the unit was not required to technology at the unit within 24 months ‘‘(e) ALLOCATIONS.—Not later than 6 report heat input during the year under sec- after approval of the application under sub- months after the commencement date of the tion 405 and did not report to the Energy In- section (c) if the unit is allocated the sulfur sulfur dioxide allowance requirement of sec- formation Administration and the WRAP dioxide allowances requested under para- tion 422, for the units for which applications State. graph (4). The owner or operator shall pro- are approved under subsection (c), the Ad- ‘‘(2) AFFECTED EGU.—The term ‘affected vide description of the control technology. ministrator shall allocate sulfur dioxide al- EGU’ means an affected EGU under subpart ‘‘(2) A statement that, during the period lowances as follows: 2 that is in a WRAP State and that— starting with the commencement of oper- ‘‘(1) For each unit, the Administrator shall ‘‘(A) in 2000, emitted 100 tons or more of ation of sulfur dioxide technology under multiply the allowance-to-emission-reduc- sulfur dioxide and was used to produce elec- paragraph (1) through 2009, the unit will tion ratio of the last application that the tricity for sale; or combust Eastern bituminous at a percentage Administrator approved under subsection (c) ‘‘(B) in any year after 2000, emits 100 tons of the unit’s total heat input equal to or ex- by the lesser of— or more of sulfur dioxide and is used to ceeding the percentage of total heat input ‘‘(A) the total tonnage of sulfur dioxide produce electricity for sale. combusted by the unit in 2001 if the unit is emissions reductions achieved by the unit, ‘‘(3) COAL-FIRED.—The term ‘coal-fired’ allocated the sulfur dioxide allowances re- during the period starting with the com- with regard to a unit means, for purposes of quested under paragraph (4). mencement of operation of the sulfur dioxide section 434, a unit combusting coal or any ‘‘(3) A demonstration that the unit will control technology under subparagraph (b)(1) coal-derived fuel alone or in combination achieve, while combusting fuel in accordance through 2009, through use of such control with any amount of any other fuel in any with paragraph (2) and operating the sulfur technology; or year during the period from the eighth dioxide control technology specified in para- ‘‘(B) the tonnage of sulfur dioxide emission through the fourth year before the first cov- graph (1), a specified tonnage of sulfur diox- reductions under paragraph (b)(3). ered year. ide emission reductions during the period ‘‘(2) If the total amount of sulfur dioxide ‘‘(4) COVERED YEAR.—The term ‘covered starting with the commencement of oper- allowances determined for all units under year’ means— ation of sulfur dioxide control technology paragraph (1) exceeds 250,000 sulfur dioxide ‘‘(A)(i) the third year after the year 2018 or under subparagraph (1) through 2009. The allowances, the Administrator shall multiply later when the total annual sulfur dioxide tonnage of emission reductions shall be the 250,000 sulfur dioxide allowances by the ratio emissions of all affected EGUs in the WRAP difference between emissions monitored at a of the amount of sulfur dioxide allowances States first exceed 271,000 tons; or location at the unit upstream of the control determined for each unit under paragraph (1) ‘‘(ii) the third year after the year 2013 or technology described in paragraph (1) and to the total amount of sulfur dioxide allow- later when the Administrator determines by emissions monitored at a location at the ances determined for all units under para- regulation that the total annual sulfur diox- unit downstream of such control technology, graph (1). ide emissions of all affected EGUs in the while the unit is combusting fuel in accord- ‘‘(3) The Administrator shall allocate to WRAP States are reasonably projected to ex- ance with paragraph (2). each unit the lesser of the amount deter- ceed 271,000 tons in 2018 or any year there- ‘‘(4) A request that the Administrator allo- mined for that unit under paragraph (1) or, if after. The Administrator may make such de- cate for the unit a specified number of sulfur the total amount of sulfur dioxide allow- termination only if all the WRAP States dioxide allowances from the reserve under ances determined for all units under para- submit to the Administrator a petition re- subsection (a) for the period starting with graph (1) exceeds 250,000 sulfur dioxide allow- questing that the Administrator issue such the commencement of operation of the sulfur ances, under paragraph (2). The Adminis- determination and make all affected EGUs dioxide technology under paragraph (1) trator shall allocate to the facilities under in the WRAP States subject to the require- through 2009. section 424 paragraphs (1) and (2) on a pro ments of sections 432 through 434; and ‘‘(5) A statement of the ratio of the number rata basis (based on the allocations under ‘‘(B) each year after the ‘covered year’ of sulfur dioxide allowances requested under those paragraphs) any unallocated allow- under subparagraph (A). paragraph (4) to the tonnage of sulfur dioxide ances under this paragraph. ‘‘(5) OIL-FIRED.—The term ‘oil-fired’ with emissions reductions under paragraph (3). ‘‘Subpart 3—Western Regional Air regard to a unit means, for purposes of sec- ‘‘(c) APPROVAL OR DISAPPROVAL.—By order Partnership tion 434, a unit combusting fuel oil for more subject to notice and opportunity for com- than 10 percent of the unit’s total heat input, ment, the Administrator shall— ‘‘SEC. 431. DEFINITIONS. ‘‘For purposes of this subpart— and combusting no coal or coal-derived fuel, ‘‘(1) determine whether each application and any year during the period from the meets the requirements of subsection (b); ‘‘(1) ADJUSTED BASELINE HEAT INPUT.—The term ‘adjusted baseline heat input’ means eighth through the fourth year before the ‘‘(2) list the applications meeting the re- first covered year. quirements of subsection (b) and their re- the average annual heat input used by a unit during the three years in which the unit had ‘‘(6) WRAP STATE.—The term ‘WRAP spective allowance-to-emission-reduction ra- State’ means Arizona, California, Colorado, tios under paragraph (b)(5) in order, from the highest heat input for the period from the eighth through the fourth year before Idaho, Nevada, New Mexico, Oregon, Utah, lowest to highest, of such ratios; and Wyoming. ‘‘(3) for each application listed under para- the first covered year. ‘‘SEC. 432. APPLICABILITY. graph (2), multiply the amount of sulfur di- ‘‘(A) Notwithstanding paragraph (1), if a ‘‘(a) PROHIBITION.—Starting January 1 of oxide emission reductions requested by each unit commences operation during such pe- the first covered year, it shall be unlawful allowance-to-emission-reduction ratio on the riod and— for the affected EGUs at a facility to emit a list that equals or is less than the ratio for ‘‘(i) on or after January 1 of the fifth year total amount of sulfur dioxide during the the application; before the first covered year, then ‘adjusted year in excess of the number of sulfur diox- ‘‘(4) sum, for each allowance-to-emission- baseline heat input’ shall mean the average ide allowances held for such facility for that reduction ratio in the list under paragraph annual heat input used by the unit during year by the owner or operator of the facility. (2), the amounts of sulfur dioxide allowances the fifth and fourth years before the first ‘‘(b) ALLOWANCES HELD.—Only sulfur diox- determined under paragraph (3); covered year; and ide allowances under section 433 shall be held ‘‘(5) based on the calculations in paragraph ‘‘(ii) on or after January 1 of the fourth in order to meet the requirements of sub- (4), determine which allowance-to-emission- year before the first covered year, then ‘ad- section (a). reduction ratio on the list under paragraph justed baseline heat input’ shall mean the (2) results in the highest total amount of al- annual heat input used by the unit during ‘‘SEC. 433. LIMITATIONS ON TOTAL EMISSIONS. For affected EGUs, the total amount of lowances that does not exceed 250,000 allow- the fourth year before the first covered year. sulfur dioxide allowances that the Adminis- ances; and ‘‘(B) A unit’s heat input for a year shall be trator shall allocate for each covered year ‘‘(6) approve each application listed under the heat input— under section 434 shall equal 271,000 tons. paragraph (2) with a ratio equal to or less ‘‘(i) required to be reported under section than the allowance-to-emission-reduction 405 for the unit, if the unit was required to ‘‘SEC. 434. EGU ALLOCATIONS. ratio determined under paragraph (5) and report heat input during the year under that ‘‘(a) IN GENERAL.—By January 1 of the year disapprove all the other applications. section; before the first covered year, the Adminis- ‘‘(d) MONITORING.—An owner or operator ‘‘(ii) reported to the Energy Information trator shall promulgate regulations deter- whose application is approved under sub- Administrator for the unit, if the unit was mining, for each covered year, the alloca- section (c) shall install and operate a CEMS not required to report heat input under sec- tions of sulfur dioxide allowances for the for monitoring sulfur dioxide and to quality tion 405; units at a facility that are affected EGUs as assure the data. The installation of the ‘‘(iii) based on data for the unit reported to of December 31 of the fourth year before the CEMS and the quality assurance of data the WRAP State where the unit is located as covered year by— shall be in accordance with subparagraph required by State law, if the unit was not re- ‘‘(1) for such units at the facility that are (a)(2)(B) and subsections (c) through (e) of quired to report heat input during the year coal-fired, multiplying 0.40 lb/mmBtu by the section 405, except that, where two or more under section 405 and did not report to the total adjusted baseline heat input of such units utilize a single stack, and one or more Energy Information Administration; or units and converting to tons;

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00233 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S340 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(2) for such units at the facility that are for any type of utility boiler if the Adminis- graph (B), to emit at a rate in excess of the oil-fired, multiplying 0.20 lb/mmBtu by the trator finds that the maximum listed rate applicable emission rate; total adjusted baseline heat input of such for that boiler type cannot be achieved using ‘‘(ii) at the conclusion of the demonstra- units and converting to tons; low NOX burner technology. The Adminis- tion period to revise the operating permit to ‘‘(3) for all such other units at the facility trator shall implement this paragraph under reflect the alternative emission rate dem- that are not covered by paragraph (1) or (2) 40 CFR part 76.5 (2002). The maximum allow- onstrated in subparagraphs (B) and (C). multiplying 0.05 lb/mmBtu by the total ad- able emission rates are as follows: ‘‘(3) ADDITIONAL CONTROL TECHNOLOGY.— justed baseline heat input of such units and ‘‘(A) for tangentially fired boilers, 0.45 lb/ Units subject to subsection (b)(1) for which converting to tons; and mmBtu; and an alternative emission limitation is estab- ‘‘(4) multiplying by 0.95 the allocation ‘‘(B) for dry bottom wall-fired boilers lished shall not be required to install any ad- amount under section 433 by the ratio of the (other than units applying cell burner tech- ditional control technology beyond low NOX total of the amounts for the facility under nology), 0.50 lb/mmBtu. After January 1, burners. Nothing in this section shall pre- paragraphs (1), (2), and (3) to the total of the 1995, it shall be unlawful for any unit that is clude an owner or operator from installing amounts for all facilities under paragraphs an affected unit on that date and is of the and operating an alternative NOX control (1), (2), and (3); and type listed in this paragraph to emit nitro- technology capable of achieving the applica- ‘‘(5)(A) 5 percent of the total amount of gen oxides in excess of the emission rates set ble emission limitation. The Administrator sulfur dioxide allowances allocated each year by the Administrator pursuant to this para- shall implement this subsection under 40 under section 433 shall be allocated for units graph. CFR part 76 (2002), amended as appropriate at a facility that are affected EGUs, but did ‘‘(2) UTILITY BOILERS.—The Administrator by the Administrator. not receive sulfur dioxide allocations under shall, by regulation, establish allowable ‘‘(d) EMISSIONS AVERAGING.— paragraph (4). These units shall be allocated emission limitations on a lb/mmBtu, annual ‘‘(1) ALERNATIVE CONTEMPORANEOUS EMIS- allowances in accordance with paragraphs average basis, for nitrogen oxides for the fol- SION LIMITATIONS.—In lieu of complying with (1), (2), and (3). lowing types of utility boilers: the applicable emission limitations under ‘‘(B) Allowances allocated under subpara- ‘‘(A) wet bottom wall-fired boilers; subsection (b)(1), (2), or (c), the owner or op- graph (A) shall be allocated to units on a ‘‘(B) cyclones; erator of two or more units subject to one or first come basis determined by date of unit ‘‘(C) units applying cell burner technology; more of the applicable emission limitations commencement of construction, provided and set pursuant to these sections, may petition that such unit actually commences oper- ‘‘(D) all other types of utility boilers. the permitting authority for alternative con- ation. As such, allocations to units under ‘‘(3) BASIS OF RATES.—The Administrator temporaneous annual emission limitations paragraph (A) will not be reduced as a result shall base such rates on the degree of reduc- for such units that ensure that— of new units commencing commercial oper- tion achievable through the retrofit applica- ‘‘(A) the actual annual emission rate in ation. tion of the best system of continuous emis- pounds of nitrogen oxides per million Btu ‘‘(C) Allowances not allocated under sub- sion reduction, taking into account available averaged over the units in question is a rate paragraph (B) shall be allocated to units in technology, costs and energy and environ- that is less than; or equal to paragraphs (A) and (B) on a pro rata basis. mental impacts; and which is comparable to ‘‘(B) the Btu-weighted average annual ‘‘(b) FAILURE TO PROMULGATE.— the costs of nitrogen oxides controls set pur- emission rate for the same units if they had ‘‘(1) IN GENERAL.—For each year 2010 and suant to subsection (b)(1). The Administrator been operated, during the same period of thereafter, if the Administrator has not pro- may revise the applicable emission limita- time, in compliance with limitations set in mulgated regulations, determining alloca- tions for tangentially fired and dry bottom, accordance with the applicable emission tions under paragraph (a), each affected EGU wall-fired boilers (other than cell burners) to rates set pursuant to subsections (b)(1) and shall comply with section 422 by provided an- be more stringent if the Administrator de- (2). PERATING PERMITS nual notice to the permitting authority. termines that more effective low NOX burned ‘‘(2) O .—If the permitting Such notice shall indicate the amount of al- technology is available: Provided, That, no authority determines, in accordance with lowances the affected EGU believes it has for unit that is an affected unit pursuant to sec- regulations issued by the Administrator that the relevant year and the amount of sulfur tion 413 and that is subject to the require- the conditions in paragraph (1) can be met, dioxide emissions for such year. The amount ments of subsection (b)(1), shall be subject to the permitting authority shall issue oper- of sulfur dioxide emissions shall be deter- the revised emission limitations, if any. The ating permits for such units, in accordance mined using reasonable industry accepted Administrator shall implement that para- with section 404 and title V, that allow alter- methods unless the Administrator has pro- graph under 40 CFR parts 76.6 and 76.7 (2002). native contemporaneous annual emission mulgated applicable monitoring and alter- ‘‘(c) ALTERNATIVE EMISSION LIMITATIONS.— limitations. Such emission limitations shall native monitoring requirements. (1) The permitting authority shall, upon re- only remain in effect while both units con- ‘‘(2) RECONCILIATION.—Upon promulgation quest of an owner or operator of a unit sub- tinue operation under the conditions speci- of regulations under subsection (a) deter- ject to this section, authorize an emission fied in their respective operating permits. mining the allocations for 2010 and there- limitation less stringent than the applicable The Administrator shall implement this sub- after, and promulgating regulations under limitation established under subsection section under 40 CFR part 76 (2002), amended section 403(b) providing for the transfer of (b)(1) or (b)(2) upon a determination that— as appropriate by the Administrator. sulfur dioxides and section 403(c) estab- ‘‘(A) a unit subject to subsection (b)(1) can- ‘‘SEC. 442. TERMINATION. lishing an Allowance Transfer System for not meet the applicable limitation using low ‘‘Starting January 1, 2008, the owner or op- sulfur dioxide allowances, each unit’s emis- erator of affected units and affected facili- NOX burner technology; or sions shall be compared to and reconciled to ‘‘(B) a unit subject to subsection (b)(2) can- ties under section 441 shall no longer be sub- its actual allocations under the promulgated not meet the applicable rate using the tech- ject to the requirements of that section. regulations. Each unit will have nine (9) nology on which the Administrator based the ‘‘Subpart 2—Clear Skies Nitrogen Oxides months to purchase any allowance shortfall applicable emission limitation. Allowance Program through allowances purchased from other al- ‘‘(2) ELIGIBILITY FOR ALTERNATIVE EMISSION ‘‘SEC. 451. DEFINITIONS. lowance holders or through direct sale. LIMITATIONS.—The permitting authority ‘‘For purposes of this subpart: ‘‘PART C—NITROGEN OXIDES CLEAR shall base such determination upon a reason- ‘‘(1) AFFECTED EGU.—The term ‘affected SKIES EMISSION REDUCTIONS able showing satisfactory to the permitting EGU’ means— ‘‘Subpart 1—Acid Rain Program authority, in accordance with regulations es- ‘‘(A) for a unit serving a generator before ‘‘SEC. 441. NITROGEN OXIDES EMISSION REDUC- tablished by the Administrator, that the the date of enactment of the Clear Skies Act TION PROGRAM. owner or operator— of 2005, a unit in a State serving a generator ‘‘(a) APPLICABILITY.—On the date that a ‘‘(A) has properly installed appropriate with a nameplate capacity of greater than 25 coal-fired utility unit becomes an affected control equipment designed to meet the ap- megawatts that produced or produces elec- unit pursuant to sections 413 or 414, or on the plicable emission rate; tricity for sale during 2002 or any year there- date a unit subject to the provisions of sec- ‘‘(B) has properly operated such equipment after, except for a cogeneration unit that tion 413(d), must meet the NOX reduction re- for a period of 15 months (or such other pe- meets the criteria for qualifying for a cogen- quirements, each such unit shall become an riod of time as the Administrator determines eration facilities codified in section 292.205 of affected unit for purposes of this section and through the regulations), and provides oper- title 18 of the Code of Federal Regulations as shall be subject to the emission limitations ating and monitoring data for such period issued on April 1, 2002 during 2002 and each for nitrogen oxides set forth herein. demonstrating that the unit cannot meet the year thereafter; and ‘‘(b) EMISSION LIMITATIONS.— applicable emission rate; and ‘‘(B) for a unit commencing service of a (1) IN GENERAL.—The Administrator shall ‘‘(C) has specified an emission rate that generator on or after the date of enactment by regulation establish annual allowable such unit can meet on an annual average of the Clear Skies Act of 2005, a unit in a emission limitations for nitrogen oxides for basis. The permitting authority shall issue State serving a generator that produces elec- the types of utility boilers listed below, an operating permit for the unit in question, tricity for sale during any year starting with which limitations shall not exceed the rates in accordance with section 404 and title V— the year the unit commences service of a listed below: Provided, That the Adminis- ‘‘(i) that permits the unit during the dem- generator, except for a gas-fired unit serving trator may set a rate higher than that listed onstration period referred to in subpara- one or more generators with total nameplate

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capacity of 25 megawatts or less, or a cogen- order to meet the requirements of paragraph ‘‘(4) SET-ASIDE FOR NEW UNITS.— eration unit that meets the criteria for (1), except as provided under section 465. ‘‘(A) IN GENERAL.—5 percent of the total qualifying for a cogeneration facilities codi- ‘‘(b) ZONE 2 PROHIBITION.— amount of nitrogen oxide allowances allo- fied in section 292.205 of title 18 of the Code (1) IN GENERAL.—Starting January 1, 2008, cated each year under section 453 shall be al- of Federal Regulations as issued on April 1, it shall be unlawful for the affected EGUs at located for units at a facility that are af- 2002, during each year starting with the unit a facility in a Zone 2 State to emit a total fected EGUs, but did not receive nitrogen commences service of a generator. amount of nitrogen oxides during a year in oxide allocations under paragraph (2). ‘‘(C) EXCLUSION.—Notwithstanding para- excess of the number of nitrogen oxides al- ‘‘(B) FORMULA FOR ALLOCATION.— graphs (A) and (B), the term ‘affected EGU’ lowances held for such facility for that year ‘‘(i) IN GENERAL.—Subject to clause (ii) and does not include a solid waste incineration by the owner or operator of the facility. subparagraph (E), the regulations promul- unit subject to section 129 or a unit for the ‘‘(2) LIMITATION.—Only nitrogen oxides al- gated under paragraph (1) shall specify that treatment, storage, or disposal of hazardous lowances under section 453(b) shall be held in the allocation of nitrogen oxide allowances waste subject to section 3005 of the Solid order to meet the requirements of paragraph for each unit referred to in subparagraph (A) Waste Disposal Act. (1). for each year shall be the product obtained ‘‘(2) ADJUSTED BASELINE HEAT INPUT.—The ‘‘SEC. 453. LIMITATIONS ON TOTAL EMISSIONS. by multiplying— term ‘adjusted baseline heat input’ with re- ‘‘(a) ZONE 1 ALLOCATIONS.—For affected ‘‘(I) the product of 0.05 and the allocation gard to a unit means, for purposes of allo- EGUs in the Zone 1 States for 2008 and each amount under section 453(a); and cating nitrogen oxides allowances in a par- year thereafter, the Administrator shall al- ‘‘(II) the ratio that— ticular year under this subpart, the units locate nitrogen oxides allowances under sec- ‘‘(aa) the total quantity of the adjusted baseline multiplied by— tion 454(a) as specified in table A. baseline heat input of the units at the facil- ‘‘(A) 1.0 for affected coal-fired units for 2008 ity; bears to ‘‘TABLE A—TOTAL NOX ALLOWANCES and each year thereafter; ALLOCATED FOR EGUS IN ZONE 1 ‘‘(bb) the total quantity of adjusted base- ‘‘(B) 0.55 for affected oil- and gas-fired line heat input to all affected EGUs in the Year NO allowances units located in a Zone 1 State for years 2008 X Zone 1 States, including those affected EGUs allocated through 2017 inclusive; 2008–2017 ...... 1,473,603 that receive allowances under paragraph (2). ‘‘(C) 0.8 for affected oil- and gas-fired units 2018 and thereafter ...... 1,073,603 ‘‘(ii) ADDITIONAL ALLOWANCES.—Notwith- located in a Zone 1 State for 2018 and each ‘‘(b) ZONE 2 ALLOCATIONS.—For affected standing clause (i) and subparagraph (E), no year thereafter; and EGUs in the Zone 2 States for 2008 and each unit shall receive an allocation under this ‘‘(D) 0.4 for affected oil- and gas-fired units year thereafter, the Administrator shall al- paragraph in excess of the product obtained located in a Zone 2 State for 2008 and each locate nitrogen oxides allowances under sec- by multiplying— year thereafter. tion 454(b) as specified in table B. ‘‘(I) the baseline heat input of the unit; and ‘‘(3) ALLOWABLE NITROGEN OXIDES EMISSIONS ‘‘(II) the quotient obtained by dividing the ‘‘TABLE B—TOTAL NO ALLOWANCES RATE.—The term ‘allowable nitrogen oxides X allowable nitrogen oxides emissions rate of emissions rate’ means the most stringent ALLOCATED FOR EGUS IN ZONE 2 the unit by 2000. Federal or State emissions limitation for ni- Year NOX allowance ‘‘(C) METHOD OF ALLOCATION.—Allowances trogen oxides that applies to the unit as of allocated allocated under this paragraph shall be allo- date of enactment of this subpart. If the 2008 and thereafter ...... 714,794 cated to each unit on a first-come basis de- emissions limitation for a unit is not ex- ‘‘SEC. 454. EGU ALLOCATIONS. termined by the date on which the unit com- pressed in pounds of emissions per million ‘‘(a) EGU ALLOCATIONS IN THE ZONE 1 mences operation. Btu, or the averaging period of that emis- STATES.— ‘‘(D) NO REDUCTION IN ALLOCATIONS.—Allo- sions limitation is not expressed on an an- ‘‘(1) EPA REGULATIONS.—Not later than 18 cations to units under this paragraph shall nual basis, the Administrator shall calculate months before the date on which the nitro- not be reduced as a result of new units com- the annual equivalent of that emissions limi- gen oxides allowance requirement under sec- mencing commercial operation. tation to establish the allowable rate. Such tion 452 takes effect, the Administrator shall ‘‘(E) DISTRIBUTION OF REMAINING ALLOW- limitation shall not include any requirement promulgate regulations determining the al- ANCES.—Any nitrogen oxide allowances re- to hold nitrogen oxides allowances under the location of nitrogen oxide allowances for 2008 maining after the allocation of allowances Federal NOX Budget Trading Program as and each subsequent year for units at a facil- under subparagraph (B) shall be distributed codified at 40 CFR part 97 (2002), or any State ity in a Zone 1 State that are affected EGUs on a pro rata basis among the units that re- program adopted to meet the requirements as of the date of enactment of this section. ceived nitrogen oxide allowances under that of the NOX SIP Call as codified at 40 CFR ‘‘(2) FORMULA FOR ALLOCATION.— subparagraph and paragraphs (2) and (3). 51.121 (2002). ‘‘(A) IN GENERAL.—Subject to subparagraph ‘‘(5) FAILURE TO PROMULGATE REGULA- ‘‘(4) ZONE 1 STATE.—The term ‘Zone 1 State’ (B) and paragraph (3), the regulations shall TIONS.—For calendar year 2008 and each cal- means Alabama, Arkansas, Connecticut, specify that the allocation of nitrogen oxide endar year thereafter, if the Administrator Delaware, the District of Columbia, Florida, allowances for each unit referred to in para- has not promulgated the regulations deter- Georgia, Illinois, Indiana, Iowa, Kentucky, graph (1) for each year shall be the product mining the allocations under this sub- Louisiana, Maine, Maryland, Massachusetts, obtained by multiplying— section— Michigan, Mississippi, the fine grid portion ‘‘(i) the product of 0.95 and the allocation ‘‘(A) each affected unit shall comply with (as defined in section 51.121 of title 40, Code amount under section 453(a); and section 452 by providing an annual notice to of Federal Regulations (as in effect for 2002)) ‘‘(ii) the ratio that— the permitting authority that indicates the of Missouri, New Hampshire, New Jersey, ‘‘(I) the total quantity of the adjusted amount of allowances the affected unit be- New York, North Carolina, Ohio, Pennsyl- baseline heat input of the units at the facil- lieves the affected unit has for the relevant vania, Rhode Island, South Carolina, Ten- ity; bears to year (including the quantity of nitrogen nessee, Texas east of Interstate 35, Vermont, ‘‘(II) the total quantity of adjusted base- oxide emissions of the affected unit for that Virginia, West Virginia, and Wisconsin. line heat input to all affected EGUs in the year); ‘‘(5) ZONE 2 STATE.—The term ‘Zone 2 State’ Zone 1 States; and ‘‘(B) the amount of nitrogen oxide emis- means Alaska, American Samoa, Arizona, ‘‘(B) MAXIMUM ALLOCATION.—Notwith- sions of an affected unit described in sub- California, Colorado, the Commonwealth of standing subparagraph (A) and paragraph (3), paragraph (A) shall be determined using rea- the Northern Mariana Islands, the Common- no unit shall receive an allocation in excess sonable industry accepted methods unless wealth of Puerto Rico, Guam, Hawaii, Idaho, of the product obtained by multiplying— the Administrator has promulgated applica- Kansas, Minnesota, the coarse grid portion ‘‘(i) the baseline heat input of the unit; and ble monitoring and alternative monitoring (as defined in section 51.121 of title 40, Code ‘‘(ii) the quotient obtained by dividing the requirements; and of Federal Regulations (as in effect for 2002)) allowable nitrogen oxides emissions rate of ‘‘(C) upon promulgation of regulations of Missouri, Montana, Nebraska, North Da- the unit by 2000. under this subsection for Zone 1 determining kota, New Mexico, Nevada, Oklahoma, Or- ‘‘(3) DISTRIBUTION OF REMAINING ALLOW- the allocations for 2008 and each year there- egon, South Dakota, Texas west of Inter- ANCES.— after, and promulgation of regulations under state 35, Utah, the Virgin Islands, Wash- ‘‘(A) IN GENERAL.—Subject to paragraph section 403(b) providing for the transfer of ni- ington, and Wyoming. (2)(B), any nitrogen oxide allowances re- trogen oxides and regulations under section ‘‘SEC. 452. APPLICABILITY. maining after the allocation of allowances 403(c) establishing an Allowance Transfer ‘‘(a) ZONE 1 PROHIBITION.— under paragraph (2) shall be distributed on a System for nitrogen oxide allowances— (1) IN GENERAL.—Starting January 1, 2008, pro rata basis among the units that received ‘‘(i) the emissions of each unit shall be it shall be unlawful for the affected EGUs at nitrogen oxide allowances under that para- compared to and reconciled with actual allo- a facility in a Zone 1 State to emit a total graph. cations to the unit under the regulations; amount of nitrogen oxides during a year in ‘‘(B) ADDITIONAL REMAINING ALLOWANCES.— and excess of the number of nitrogen oxides al- Allowances remaining after each iteration of ‘‘(ii) each unit shall have not more than 270 lowances held for such facility for that year the calculation under subparagraph (A) as a days to submit allowances to the Adminis- by the owner or operator of the facility. result of the limitation under paragraph trator, without recompense, for any allow- ‘‘(2) LIMITATION.—Only nitrogen oxides al- (2)(B) shall be allocated in accordance with ance shortfall (including submitted allow- lowances under section 453(a) shall be held in subparagraph (A). ances obtained and held by any mechanism

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00235 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S342 CONGRESSIONAL RECORD — SENATE January 24, 2005 consistent with this Act, including direct cated to each unit on a first-come basis de- effect for calendar year 2004) during the pe- sale). termined by the date on which the unit com- riod beginning on May 1 and ending on Sep- ‘‘(b) EGU ALLOCATIONS IN THE ZONE 2 mences operation. tember 30. STATES.— ‘‘(D) NO REDUCTION IN ALLOCATIONS.—Allo- ‘‘(c) ALLOCATION.—The allowances allo- ‘‘(1) EPA REGULATIONS.—Not later than 18 cations to units under this paragraph shall cated to any unit under this section shall be months before the date on which the nitro- not be reduced as a result of new units com- in addition to the allowances allocated under gen oxides allowance requirement under sec- mencing commercial operation. section 454 and shall be allocated in an tion 452 takes effect, the Administrator shall ‘‘(E) DISTRIBUTION OF REMAINING ALLOW- amount equal to one allowance of nitrogen promulgate regulations determining the al- ANCES.—Any nitrogen oxide allowances re- oxides for each 1.05 tons of reduction in emis- location of nitrogen oxide allowances for 2008 maining after the allocation of allowances sions of nitrogen oxides achieved by the pol- and each subsequent year for units at a facil- under subparagraph (B) shall be distributed lution control equipment or combustion ity in a Zone 2 State that are affected EGUs on a pro rata basis among the units that re- technology improvements starting with the as of the date of enactment of this section. ceived nitrogen oxide allowances under that year in which the equipment or improvement ‘‘(2) FORMULA FOR ALLOCATION.— subparagraph and paragraphs (2) and (3). is implemented. The early compliance reduc- ‘‘(A) IN GENERAL.—Subject to subparagraph ‘‘(5) FAILURE TO PROMULGATE REGULA- tion allowances available under this section (B) and paragraph (3), the regulations shall TIONS.—For calendar year 2008 and each cal- shall be used and tradable in the same man- specify that the allocation of nitrogen oxide endar year thereafter, if the Administrator ner as allowances under section 454. allowances for each unit referred to in para- has not promulgated the regulations deter- ‘‘(d) EARLY COMPLIANCE ALLOWANCE CRED- graph (1) for each year shall be the product mining the allocations under this sub- IT.—The Administrator shall promulgate obtained by multiplying— section— regulations as necessary to ensure affected ‘‘(i) the product of 0.95 and the allocation ‘‘(A) each affected unit shall comply with units receive early compliance allowance amount under section 453(b); and section 452 by providing an annual notice to credit. Early compliance allowances shall be ‘‘(ii) the ratio that— the permitting authority that indicates the allocated at the end of an early compliance ‘‘(I) the total quantity of the adjusted amount of allowances the affected unit be- year. Should the Administrator fail to pro- baseline heat input of the units at the facil- lieves the affected unit has for the relevant mulgate allocation regulations by the end of ity; bears to year (including the quantity of nitrogen a given year, early compliance allowances ‘‘(II) the total quantity of adjusted base- oxide emissions of the affected unit for that for each year shall be allocated at the ear- line heat input to all affected EGUs in the year); liest possible time after allocation regula- Zone 2 States. ‘‘(B) the amount of nitrogen oxide emis- tions are promulgated. ‘‘(B) MAXIMUM ALLOCATION.—Notwith- sions of an affected unit described in sub- ‘‘(e) EXCEPTION.—This section shall not standing subparagraph (A) and paragraph (3), paragraph (A) shall be determined using rea- apply to reductions that are— no unit shall receive an allocation in excess sonable industry accepted methods unless ‘‘(1) made during the period beginning on of the product obtained by multiplying— the Administrator has promulgated applica- May 1 and ending on September 30 of a year ‘‘(i) the baseline heat input of the unit; and ble monitoring and alternative monitoring by units that are subject to an applicable im- ‘‘(ii) the quotient obtained by dividing the requirements; and plementation plan for a NO SIP Call State allowable nitrogen oxides emissions rate of ‘‘(C) upon promulgation of regulations X (as defined in section 461(3)) required under the unit by 2000. under this subsection for Zone 2 determining section 51.121 of title 40, Code of Federal Reg- ‘‘(3) DISTRIBUTION OF REMAINING ALLOW- the allocations for 2008 and each year there- ulations (as in effect for calendar year 2004); ANCES.— after, and promulgation of regulations under or ‘‘(A) IN GENERAL.—Subject to paragraph section 403(b) providing for the transfer of ni- ‘‘(2) necessary to comply with subpart 1 of (2)(B), any nitrogen oxide allowances re- trogen oxides and regulations under section part C for the applicable year. maining after the allocation of allowances 403(c) establishing an Allowance Transfer under paragraph (2) shall be distributed on a System for nitrogen oxide allowances— ‘‘Subpart 3—Ozone Season NOX Budget pro rata basis among the units that received ‘‘(i) the emissions of each unit shall be Program nitrogen oxide allowances under that para- compared to and reconciled with actual allo- ‘‘SEC. 461. DEFINITIONS. graph. cations to the unit under the regulations; ‘‘For purposes of this subpart: ‘‘(B) ADDITIONAL REMAINING ALLOWANCES.— and Allowances remaining after each iteration of ‘‘(1) OZONE SEASON.—The term ‘ozone sea- ‘‘(ii) each unit shall have not more than 270 son’ means— the calculation under subparagraph (A) as a days to submit allowances to the Adminis- result of the limitation under paragraph ‘‘(A) with regard to Connecticut, Delaware, trator, without recompense, for any allow- the District of Columbia, Maryland, Massa- (2)(B) shall be allocated in accordance with ance shortfall (including submitted allow- subparagraph (A). chusetts, New Jersey, New York, Pennsyl- ances obtained and held by any mechanism ‘‘(4) SET-ASIDE FOR NEW UNITS.— vania, and Rhode Island, the period May 1 consistent with this Act, including direct ‘‘(A) IN GENERAL.—5 percent of the total through September 30 for each year starting sale). amount of nitrogen oxide allowances allo- in 2003; and ‘‘SEC. 455 NITROGEN OXIDES EARLY ACTION RE- ‘‘(B) with regard to all other States, the cated each year under section 453 shall be al- DUCTION CREDITS. located for units at a facility that are af- period May 1 through September 30, for each ‘‘(a) CREDITS.—Except as provided in sub- fected EGUs, but did not receive nitrogen year starting in 2004 and thereafter. section (e), the Administrator shall promul- ‘‘(2) NON-OZONE SEASON.—The term ‘non- oxide allocations under paragraph (2). gate regulations within 18 months author- ‘‘(B) FORMULA FOR ALLOCATION.— ozone season’ means— izing the allocation of nitrogen oxides allow- ‘‘(A) with regard to Connecticut, Delaware, ‘‘(i) IN GENERAL.—Subject to clause (ii) and ances to units designated under this section subparagraph (E), the regulations promul- the District of Columbia, Maryland, Massa- that install or modify pollution control chusetts, New Jersey, New York, Pennsyl- gated under paragraph (1) shall specify that equipment or combustion technology im- vania, and Rhode Island, the period October the allocation of nitrogen oxide allowances provements identified in such regulations 1 through April 30; and for each unit referred to in subparagraph (A) after the date of enactment of this section ‘‘(B) with regard to all other States, the for each year shall be the product obtained and prior to January 1, 2008. period October 1, 2003, through May 29, 2004 by multiplying— ‘‘(b) EMISSIONS REDUCTIONS.—No allow- ‘‘(I) the product of 0.05 and the allocation ances shall be allocated under this section and the period October 1 through April 30 be- amount under section 453(a); and for emissions reductions that are— ginning in the year 2004 and for each year ‘‘(II) the ratio that— ‘‘(1) attributable to pollution control thereafter. ‘‘(aa) the total quantity of the adjusted equipment or combustion technology im- ‘‘(3) NOX sip call state.—The term ‘NOX SIP baseline heat input of the units at the facil- provements that were operational at any Call State’ means Connecticut, Delaware, ity; bears to time prior to the date of enactment of this the District of Columbia, Illinois, Indiana, ‘‘(bb) the total quantity of adjusted base- section; Kentucky, Maryland, Massachusetts, New line heat input to all affected EGUs in the ‘‘(2) attributable to fuel switching; Jersey, New York, North Carolina, Ohio, Zone 2 States, including those affected EGUs ‘‘(3) required under any Federal or State Pennsylvania, Rhode Island, South Carolina, that receive allowances under paragraph (2). regulation for the applicable year; or Tennessee, Virginia, and West Virginia and ‘‘(ii) ADDITIONAL ALLOWANCES.—Notwith- ‘‘(4) made by a unit, subject to— the fine grid portions of Alabama, Georgia, standing clause (i) and subparagraph (E), no ‘‘(A) subpart 1 of part C, that are necessary Michigan, and Missouri. unit shall receive an allocation under this for compliance with the limitation on the ‘‘(4) FINE GRID PORTIONS OF ALABAMA, paragraph in excess of the product obtained Btu-weighted average annual emission rate GEORGIA, MICHIGAN, AND MISSOURI.—The by multiplying— of the unit and 1 or more other units under term ‘fine grid portions of Alabama, Georgia, ‘‘(I) the baseline heat input of the unit; and section 441(d); or Michigan, and Missouri’ means the areas in ‘‘(II) the quotient obtained by dividing the ‘‘(B) the requirements in the applicable im- Alabama, Georgia, Michigan, and Missouri subject to 40 CFR part 51.121 (2001). allowable nitrogen oxides emissions rate of plementation plan of a NOX SIP Call State the unit by 2000. (as defined in section 461(3)) that meet the ‘‘SEC. 462. GENERAL PROVISIONS. ‘‘(C) METHOD OF ALLOCATION.—Allowances requirements under sections 51.121 and 51.122 ‘‘The provisions of sections 402 through 406 allocated under this paragraph shall be allo- of title 40, Code of Federal Regulations (as in shall not apply to this subpart.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00236 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S343 ‘‘SEC. 463. APPLICABLE IMPLEMENTATION PLAN. emission rate. The Administrator shall de- ‘‘(ii) a unit for the treatment, storage, or ‘‘(a) SIPS.—Except as provided in sub- termine if any other existing NOX emission disposal of hazardous waste subject to sec- section (b), the applicable implementation control devices are generally uneconomic to tion 3005 of the Solid Waste Disposal Act; or plan for each NOX SIP Call State shall be operate unless EGUs are provided incentives ‘‘(iii) a unit with de minimis emissions consistent with the requirements, including to control NOX emissions during the non- equal to or less than 50 pounds on an average the NOX SIP Call State’s nitrogen oxides ozone season. If the Administrator finds that annual basis, as calculated by the Adminis- budget and compliance supplement pool, in incentives using different control equipment trator for a 3-year period using— sections 51.121 and 51.122 of title 40, Code of are necessary to make the operation of these ‘‘(I) for calendar year 2010, the emissions Federal Regulations (as in effect for calendar devices economic, the Administrator shall data for a facility for calendar years 2006 year 2004). specify these types of control devices and, through 2009; and ‘‘(b) REQUIREMENTS.—Notwithstanding any for an affected facility with these specified ‘‘(II) for calendar year 2011 and subsequent provision to the contrary in section 51.121 or devices, installed prior to enactment of this calendar years, the 3 most recent calendar 51.122 of title 40, Code of Federal Regulations title, that voluntarily elects to operate these years for which emissions data are available. (as in effect for calendar year 2004): devices during the nonozone season under ‘‘SEC. 472. APPLICABILITY. ‘‘(1) IMPLEMENTATION PLAN.—The applica- section 461(2) shall be credited 0.5 allowances ‘‘Starting January 1, 2010, it shall be un- ble implementation plan for each NOX SIP per ton of emissions avoided as a result of lawful for the affected EGUs at a facility in Call State shall require full implementation operating these controls. The Administrator a State to emit a total amount of mercury of the required emission control measures shall promulgate regulations as necessary to during the year in excess of the number of starting no later than the first ozone season. establish this NOX allowance credit program. mercury allowances held for such facility for ‘‘(2) EXEMPTION.—Starting January 1, Failure of the Administrator to promulgate that year by the owner or operator of the fa- 2008— implementing regulations prior to voluntary cility. ‘‘(A) the owners and operators of a boiler, reductions being undertaken by affected fa- ‘‘SEC. 473. LIMITATIONS ON TOTAL EMISSIONS. combustion turbine, or integrated gasifi- cilities shall not in any manner reduce the ‘‘For affected EGUs for 2010 and each year cation combined cycle plant subject to emis- number of allowances an otherwise quali- thereafter, the Administrator shall allocate sion reduction requirements or limitations fying facility shall be credited upon promul- mercury allowances pursuant to section 474. under part B, C, or D shall no longer be sub- gation of the regulations. ject to the requirements in a NO SIP Call X ‘‘PART D—MERCURY EMISSIONS TABLE A.—TOTAL MERCURY ALLOWANCES ALLOCATED State’s applicable implementation plan that REDUCTIONS FOR EGUS meet the requirements of subsection (a) and paragraph (1); and ‘‘SEC. 471. DEFINITIONS. Mercury al- ‘‘(B) notwithstanding subparagraph (A), if Year lowances ‘‘For purposes of this part: allocated the Administrator determines, by December ‘‘(1) ADJUSTED BASELINE HEAT INPUT.—The 31, 2007, that a NOX SIP Call State’s applica- term ‘adjusted baseline heat input’ with re- 2010–2017 ...... 1,088,000 ble implementation plan meets the require- gard to a unit means the unit’s baseline heat 2018 and thereafter ...... 480,000 ments of subsection (a) and paragraph (1), input multiplied by— such applicable implementation plan shall be ‘‘SEC. 474. EGU ALLOCATIONS. ‘‘(A) 1.0, for the portion of the baseline ‘‘(a) IN GENERAL.—Not later than 24 deemed to continue to meet such require- heat input that is the unit’s average annual ments. months before the commencement date of combustion of bituminous during the years the mercury allowance requirement of sec- ‘‘(c) SAVINGS PROVISION.—Nothing in this on which the unit’s baseline heat input is tion 472, the Administrator shall promulgate section or section 464 shall preclude or deny based; the right of any State or political subdivi- regulations determining allocations of mer- ‘‘(B) 3.0, for the portion of the baseline cury allowances for 2010 and thereafter for sion thereof to adopt or enforce any regula- heat input that is the unit’s average annual tion, requirement, limitation, or standard, units at a facility that commence commer- combustion of lignite during the years on cial operation by and are affected EGUs as of relating to a boiler, combustion turbine, or which the unit’s baseline heat input is based; integrated gasification combined cycle plant date of enactment. The regulations shall pro- ‘‘(C) 1.25, for the portion of the baseline vide that the Administrator shall allocate subject to emission reduction requirements heat input that is the unit’s average annual or limitations under part B, C, or D, that is each year for such units an amount deter- combustion of subbituminous during the mined by multiplying by 0.95 the allocation more stringent than a regulation, require- years on which the unit’s baseline heat input ment, limitation, or standard in effect under amount in section 473 by the ratio of the is based; and total amount of the adjusted baseline heat this section or under any other provision of ‘‘(D) 1.0, for the portion of the baseline this Act. input of such units at the facility to the heat input that is not covered by subpara- total amount of adjusted baseline heat input ‘‘SEC. 464. TERMINATION OF FEDERAL ADMINIS- graph (A), (B), or (C) or for the entire base- of all affected EGUs. TRATION OF NO TRADING PRO- X line heat input if such baseline heat input is ‘‘(b) NEW FACILITIES.—5 percent of the GRAM FOR EGUS. not based on the unit’s heat input in speci- total amount of nitrogen oxides allowances ‘‘Starting January 1, 2008, with regard to fied years. allocated each year under section 473 shall be any boiler, combustion turbine, or inte- ‘‘(2) AFFECTED EGU.—The term ‘affected allocated for units at a facility that com- grated gasification combined cycle plant EGU’ means— mence commercial operation and are af- subject to emission reduction requirements ‘‘(A) for a unit serving a generator before fected EGUs after the date of enactment. or limitations under part B, C, or D, the Ad- the date of enactment of the Clear Skies Act These units shall be allocated allowances for ministrator shall not administer any nitro- of 2005, a coal-fired unit in a State serving a each year by multiplying the allocation gen oxides trading program included in any generator with a nameplate capacity of amount under section 473 by the ratio of the NO SIP Call State’s applicable implementa- X greater than 25 megawatts that produced or total amount of the adjusted baseline heat tion plan and meeting the requirements of produces electricity for sale during 2002 or input of such units at the facility to the section 463(a) and (b)(1). any year thereafter, except for a cogenera- total amount of adjusted baseline heat input ‘‘SEC. 465. CARRYFORWARD OF PRE–2008 NITRO- tion unit meets the criteria for qualifying to all affected EGUs, including those covered GEN OXIDES ALLOWANCES. for a cogeneration facilities codified in sec- in subsection (a). However, the regulations ‘‘The Administrator shall promulgate reg- tion 292.205 of title 18 of the Code of Federal shall not allocate allowances to any affected ulations as necessary to assure that the re- Regulations as issued on April 1, 2002, during unit in excess of the product of the unit’s quirement to hold allowances under section 2002 and each year thereafter; and baseline heat input multiplied by the unit’s 452(a)(1) may be met using nitrogen oxides ‘‘(B) for a unit commencing service of a allowable mercury emissions rate, divided by allowances allocated for an ozone season be- generator on or after the date of enactment 2000. fore 2008 under a nitrogen oxides trading pro- of the Clear Skies Act of 2005, a coal-fired ‘‘(c) ALLOCATION.—Allowances allocated gram that the Administrator administers, is unit in a State serving a generator that pro- under subsection (b) shall be allocated to included in a NOX SIP Call State’s applicable duces electricity for sale during any year units on a first come basis determined by implementation plan, and meets the require- starting with the year the unit commences date of unit commencement of construction, ments of section 463 (a) and (b)(1). service of a generator, except for a cogenera- provided that such unit actually commences ‘‘SEC. 466. NON-OZONE SEASON VOLUNTARY AC- tion unit that meets the criteria for quali- commercial operation. As such, allocations TION CREDITS. fying for a cogeneration facilities codified in to units under subsection (b) will not be re- ‘‘An affected facility that voluntarily section 292.205 of title 18 of the Code of Fed- duced as a result of new units commencing elects to operate selective catalytic reduc- eral Regulations as issued on April 1, 2002, commercial operation. tion (SCR) units, installed prior to enact- during each year starting with the year the ‘‘(d) UNALLOCATED ALLOWANCES.—Allow- ment of this title, during the non-ozone sea- unit commences service of a generator. ances not allocated under paragraph (2) shall son under section 461(2) shall be credited 0.5 ‘‘(C) EXCLUSION.—Notwithstanding para- be allocated to units in subsections (a) and allowances per ton of NOX emissions avoided graphs (A) and (B), the term ‘affected EGU’ (b) on a pro rata basis. as a result of operating these controls. The does not include— ‘‘(e) AMOUNT OF ALLOWANCES.—For each amount avoided will equal every ton of ni- ‘‘(i) a solid waste incineration unit subject year 2010 and thereafter, if the Adminis- trogen oxides reduction below the allowable to section 129; trator has not promulgated the regulations

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00237 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S344 CONGRESSIONAL RECORD — SENATE January 24, 2005 determining allocation under subsection owner or operator has either undertaken a ‘‘(II) comply with recordkeeping and re- (a)— continuous program of construction or has porting requirements; and ‘‘(1) each affected unit shall comply with entered into a contractual obligation to un- ‘‘(III) comply with alternative monitoring, section 472 by providing annual notice to the dertake and complete, within a reasonable quality assurance, recordkeeping, and re- permitting authority. Such notice shall indi- time, a continuous program of construction. porting requirements for any period of time cate the amount of allowances the affected For boilers and integrated gasification com- for which the Administrator determines that unit believes it has for the relevant year and bined cycle plants, this term does not in- CEMS with appropriate vendor guarantees the amount of mercury emissions for such clude undertaking such a program or enter- are not commercially available for particu- year. The amount of mercury emissions shall ing into such an obligation more than 36 late matter. be determined using reasonable industry ac- months prior to the date on which the unit ‘‘(3) COMPLIANCE.—For boilers, integrated cepted methods unless the Administrator has begins operation. For combustion turbines, gasification combined cycle plants, and coal promulgated applicable monitoring and al- this term does not include undertaking such fired or gas-fired combustion turbines the ternative monitoring requirements; and a program or entering into such an obliga- Administrator shall require that the owner ‘‘(2) upon promulgation of regulations tion more than 18 months prior to the date or operator demonstrate compliance with under subsection (a) determining the alloca- on which the unit begins operation. the standards daily, using a 30-day rolling tions for 2010 and thereafter, and promul- ‘‘(2) CONSTRUCTION.—The term ‘construc- average, except that in the case of mercury, gating regulations under section 403(b) pro- tion’ means fabrication, erection, or instal- the compliance period shall be the calendar viding for the transfer of mercury allowances lation of an affected unit. year. For combustion turbines that are oil- and section 403(c) establishing an Allowance ‘‘(3) AFFECTED UNIT.—The term ‘affected fired the Administrator shall require that Transfer System for mercury allowances, unit’ means any unit that is subject to emis- the owner or operator demonstrate compli- each unit’s emissions shall be compared to sion limitations under subpart 2 of part B, ance with the standards hourly, using a 4- and reconcile with its actual allocations subpart 2 of part C, or part D. hour rolling average. OILERS AND NTEGRATED ASIFICATION under the promulgated regulation. Each unit ‘‘(4) EXISTING AFFECTED UNIT.—The term ‘‘(c) B I G will have nine (9) months to submit allow- ‘existing affected unit’ means any affected COMBINED CYCLE PLANTS.— ances to the Administrator, without rec- unit that is not a new affected unit. ‘‘(1) IN GENERAL.—After the effective date of standards promulgated under subsection ompense, for any allowances shortfall. The ‘‘(5) NEW AFFECTED UNIT.—The term ‘new submitted allowances may have been ob- affected unit;’ means any affected unit, the (b), no owner or operator shall cause any boiler or integrated gasification combined tained and held by any mechanism con- construction or reconstruction of which is cycle plant that is a new affected unit to dis- sistent with the Act including, but not lim- commenced after the date of enactment of charge into the atmosphere any gases which ited to, direct sale. the Clear Skies Act of 2005, except that for contain— the purpose of any revision of a standard ‘‘SEC. 475. MERCURY EARLY ACTION REDUCTION ‘‘(A) sulfur dioxide in excess of 2.0 lb/MWh; CREDITS. pursuant to subsection (e), ‘new affected ‘‘(B) nitrogen oxides in excess of 1.0 lb/ ‘‘(a) IN GENERAL.—The Administrator shall unit’ means any affected unit, the construc- MWh; promulgate regulations within 18 months au- tion or reconstruction of which is com- ‘‘(C) particulate matter in excess of 0.20 lb/ thorizing the allocation of mercury allow- menced after the publication of regulations MWh; or ances to units designated under this section (or, if earlier, proposed regulations) pre- that install or modify pollution control ‘‘(D) if the unit is coal-fired, mercury in scribing a standard under this section that excess of 0.015 lb/GWh, unless— equipment or combustion technology im- will apply to such unit. provements identified in such regulations ‘‘(i) mercury emissions from the unit, de- ‘‘(6) RECONSTRUCTION.—The term ‘recon- termined assuming no use of on-site or off- after the date of enactment of this section struction’ means the replacement of compo- and prior to January 1, 2010. site pre-combustion treatment of coal and no nents of a unit to such an extent that— use of technology that captures mercury, are ‘‘(b) NONALLOCATION OF ALLOWANCES.—No ‘‘(A) the fixed capital cost of the new com- allowances shall be allocated under this reduced by 80 percent; ponents exceeds 50 percent of the fixed cap- ‘‘(ii) flue gas desulfurization (FGD) and se- paragraph for emissions reductions: attrib- ital cost that would be required to construct utable to pollution control equipment or lective catalytic reduction (SCR) are applied a comparable entirely new unit; and to the unit; or combustion technology improvements that ‘‘(B) it is technologically and economically were operational or under construction at ‘‘(iii) a technology is applied to the unit feasible to meet the applicable standards set and the permitting authority determines any time prior to the date of enactment of forth in this section. this section; attributable to fuel switching; that the technology is equivalent in terms of or required under any Federal regulation. ‘‘(b) EMISSION STANDARDS.— mercury capture to the application of FGD ‘‘(c) AMOUNT OF ALLOWANCES.—The allow- ‘‘(1) IN GENERAL.—No later than 12 months and SCR. ances allocated to any unit under this para- after the date of enactment of the Clear ‘‘(2) EXEMPTION.—Notwithstanding sub- graph shall be in addition to the allowances Skies Act of 2005, the Administrator shall paragraph (1)(D), integrated gasification allocated under section 474 and shall be allo- promulgate regulations prescribing the combined cycle plants with a combined ca- cated in an amount equal to 1 allowance of standards in subsections (c) through (d) for pacity of less than 5 GW are exempt from the mercury for each 1.05 ounces of reduction in the specified affected units and establishing mercury requirement under subparagraph emissions of mercury achieved by the pollu- requirements to ensure compliance with (1)(D) if they are constructed as part of a tion control equipment or combustion tech- these standards, including monitoring, rec- demonstration project under the Secretary nology improvements starting with the year ordkeeping, and reporting requirements. of Energy that will include a demonstration in which the equipment or improvement is ‘‘(2) MONITORING.— of removal of significant amounts of mer- implemented. The early compliance reduc- ‘‘(A) IN GENERAL.—The owner or operator cury as determined by the Secretary of En- tion allowances available under this section of any affected unit subject to the standards ergy in conjunction with the Administrator shall be used and tradable in the same man- for sulfur dioxide, nitrogen oxides, or mer- as part of the solicitation process. ner as allowances under section 474. cury under this section shall meet the re- ‘‘(3) DISCHARGES.—After the effective date ‘‘(d) EARLY COMPLIANCE ALLOWANCE CRED- quirements of section 405, except that, where of standards promulgated under subsection IT.—The Administrator shall promulgate two or more units utilize a single stack, sep- (b), no owner or operator shall cause any oil- regulations as necessary to ensure affected arate monitoring shall be required for each fired boiler that is an existing affected unit units receive early compliance allowance affected unit for the pollutants for which the to discharge into the atmosphere any gases credit. Early compliance allowances shall be unit is subject to such standards. which contain particulate matter in excess allocated at the end of an early compliance ‘‘(B) REQUIREMENTS.—The Administrator of 0.30 lb/MWh. year. Should the Administrator fail to pro- shall, by regulation, require— ‘‘(d) COMBUSTION TURBINES.— mulgate allocation regulations by the end of ‘‘(i) the owner or operator of any affected ‘‘(1) GAS-FIRED COMBUSTION TURBINES.— a given year, early compliance allowances unit subject to the standards for sulfur diox- After the effective date of standards promul- for each year shall be allocated at the ear- ide, nitrogen oxides, or mercury under this gated under subsection (b), no owner or oper- liest possible time after allocation regula- section to— ator shall cause any gas-fired combustion tions are promulgated. ‘‘(I) install and operate CEMS for moni- turbine that is a new affected unit to dis- ‘‘PART E—NATIONAL EMISSION STAND- toring output, including electricity and use- charge into the atmosphere any gases which ARDS; RESEARCH, ENVIRONMENTAL AC- ful thermal energy, on the affected unit and contain nitrogen oxides in excess of— COUNTABILITY; MAJOR SOURCE to quality assure the data; and ‘‘(A) 0.56 lb/MWh (15 ppm at 15 percent oxy- PRECONSTRUCTION REVIEW AND BEST ‘‘(II) comply with recordkeeping and re- gen), if the unit is a simple cycle combustion AVAILABLE RETROFIT CONTROL TECH- porting requirements, including provisions turbine; NOLOGY REQUIREMENTS for reporting output data in megawatt hours. ‘‘(B) 0.084 lb/MWh (3.5 ppm at 15 percent ox- ‘‘SEC. 481. NATIONAL EMISSION STANDARDS FOR ‘‘(ii) the owner or operator of any affected ygen), if the unit is not a simple cycle com- AFFECTED UNITS. unit subject to the standards for particulate bustion turbine and either uses add-on con- ‘‘(a) DEFINITIONS.—For purposes of this sec- matter under this section to— trols or is located within 50 km of a class I tion: ‘‘(I) install and operate CEMS for moni- area; or ‘‘(1) COMMENCED.—The term ‘commenced’, toring particulate matter on the affected ‘‘(C) 0.21 lb/MWh (9 ppm at 15 percent oxy- with regard to construction, means that an unit and to quality assure the data; gen), if the unit is not a simple cycle turbine

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00238 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S345 and neither uses add-on controls nor is lo- in violation of any standard, established by tricity generation to mercury in fish and cated within 50 km of a class I area. this section applicable to such unit. other biota, including— ‘‘(2) COAL-FIRED COMBUSTION TURBINES.— ‘‘(i) COORDINATION WITH OTHER AUTHORI- ‘‘(A) the response of and contribution to After the effective date of standards promul- TIES.—For purposes of sections III(e), 113, 114, mercury in the biota owing to atmospheric gated under subsection (b), no owner or oper- 116, 120, 303, 304, 307, and other provisions for deposition of mercury from U.S. electricity ator shall cause any coal-fired combustion the enforcement of this Act, each standard generation on both local and regional scales; turbine that is a new affected unit to dis- established pursuant to this section shall be ‘‘(B) long-term contributions of mercury charge into the atmosphere any gases which treated in the same manner as a standard of from U.S. electricity generation on mercury contain sulfur dioxide, nitrogen oxides, par- performance under section 111, and each af- accumulations in ecosystems, and the effects ticulate matter, or mercury in excess of the fected unit subject to standards under this of mercury reductions in that sector on the emission limits under subparagraphs (c)(1) section shall be treated in the same manner environment and public health; (A) through (D). as a stationary source under section 111. ‘‘(C) the role and contribution of mercury, ‘‘(3) COMBUSTION TURBINES THAT ARE NOT ‘‘(j) STATE AUTHORITY.—Nothing in this from U.S. electricity generating facilities GAS-FIRED OR COAL-FIRED.—After the effec- section shall preclude or deny the right of and anthropogenic and natural sources to tive date of standards promulgated under any State or political subdivision thereof to fish contamination and to human exposure, subsection (b), no owner or operator shall adopt or enforce any regulation, require- particularly with respect to sensitive popu- cause any combustion turbine that is not ment, limitation, or standard relating to af- lations; gas-fired or coal-fired and that is a new af- fected units, or other EGUs, that is more ‘‘(D) the contribution of U.S. electricity fected unit to discharge into the atmosphere stringent than a regulation, requirement, generation to population exposure to mer- any gases which contain— limitation, or standard in effect under this cury in freshwater fish and seafood and ‘‘(A) sulfur dioxide in excess of 2.0 lb/MWh; section or under any other provision of this quantification of linkages between U.S. mer- Act. ‘‘(B) nitrogen oxides in excess of— cury emissions and domestic mercury expo- ‘‘(k) OTHER AUTHORITY UNDER THIS ACT.— ‘‘(i) 0.289 lb/MWh (12 ppm at 15 percent oxy- sure and its health effects; and gen), if the unit is not a simple cycle com- Nothing in this section shall diminish the authority of the Administrator or a State to ‘‘(E) the contribution of mercury from U.S. bustion turbine, is dual-fuel capable, and electricity generation in the context of other uses add-on controls; or is not a simple cycle establish any other requirements applicable to affected units under any other authority domestic and international sources of mer- combustion turbine and is located within 50 cury, including transport of global anthropo- km of a class I area; and of law, including the authority to establish for any air pollutant a national ambient air genic and natural background levels; ‘‘(ii) 1.01 lb/MWh (42 ppm at 15 percent oxy- ‘‘(3) improve understanding of the health gen), if the unit is a simple cycle combustion quality standard, except that no new af- fected unit subject to standards under this effects of fine particulate matter compo- turbine; is not a simple cycle combustion nents related to electricity generation emis- turbine and is not dual-fuel capable; or is not section shall be subject to standards under section 111 of this Act. sions (as distinct from other fine particle a simple cycle combustion turbine, is dual- fractions and indoor air exposures) and the fuel capable, and does not use add-on con- ‘‘SEC. 482. RESEARCH, ENVIRONMENTAL MONI- TORING, AND ASSESSMENT. contribution of U.S. electrical generating trols. units to those effects including— ‘‘(C) particulate matter in excess of 0.20 lb/ ‘‘(a) PURPOSES.—The Administrator, in col- laboration with the Secretary of Energy and ‘‘(A) the chronic effects of fine particulate MWh. matter from electricity generation in sen- ‘‘(e) PERIODIC REVIEW AND REVISION.— the Secretary of the Interior, shall conduct a comprehensive program of research, environ- sitive population groups; and ‘‘(1) IN GENERAL.—The Administrator shall, ‘‘(B) personal exposure to fine particulate at least every eight years following the pro- mental monitoring, and assessment to en- hance scientific understanding of the human matter from electricity generation; and mulgation of standards under subsection (b), ‘‘(4) improve understanding, by way of a re- review and, if appropriate, revise such stand- health and environmental effects of particu- late matter and mercury and to demonstrate view of the literature, of methods for valuing ards to reflect the degree of emission limita- human health and environmental benefits tion demonstrated by substantial evidence to the efficacy of emission reductions under this title for purposes of reporting to Con- associated with fine particulate matter and be achievable through the application of the mercury. best system of emission reduction which gress under (e)(2). The purposes of such a (taking into account the cost of achieving program are to— ‘‘(c) INNOVATIVE CONTROL TECHNOLOGIES.— such reduction and any nonair quality ‘‘(1) expand current research and knowl- The Administrator shall collaborate with the health and environmental impacts and en- edge of the contribution of emissions from Secretary of Energy to enhance research and ergy requirements). When implementation electricity generation to exposure and health development, and conduct new research that and enforcement of any requirement of this effects associated with particulate matter facilitates research into and development of Act indicate that emission limitations and and mercury; innovative technologies to control sulfur di- percent reductions beyond those required by ‘‘(2) enhance current research and develop- oxide, nitrogen oxides, mercury, and particu- the standards promulgated under this sec- ment of promising multi-pollutant control late matter at a lower cost than existing tion are achieved in practice, the Adminis- strategies and CEMS for mercury; technologies. Such research and develop- trator shall, when revising standards pro- ‘‘(3) produce peer-reviewed scientific and ment shall provide updated information on mulgated under this section, consider the technology information; the cost and feasibility of technologies. Such emission limitations and percent reductions ‘‘(4) improve environmental monitoring information shall be included in the report achieved in practice. and assessment of sulfur dioxide, nitrogen under subsection (d). In addition, the re- search and development shall— ‘‘(2) EXCEPTION.—Notwithstanding the re- oxides and mercury, and their trans- quirements of paragraph (1) the Adminis- formation products, to track changes in ‘‘(1) upgrade cost and performance models trator need not review any standard promul- human health and the environment attrib- to include results from ongoing and future gated under subsection (b) if the Adminis- utable to emission reductions under this electricity generation and pollution control trator determines that such review is not ap- title; and demonstrations by the Administrator and propriate in light of readily available infor- ‘‘(5) periodically provide peer-reviewed re- the Secretary of Energy; mation on the efficacy of such standard. ports on the costs, benefits, and effectiveness ‘‘(2) evaluate the overall environmental ‘‘(f) EFFECTIVE DATE.—The standard pro- of emission reductions achieved under this implications of the various technologies mulgated pursuant to this section shall be- title. tested including the impact on the charac- come effective upon promulgation. ‘‘(b) RESEARCH.—The Administrator shall teristics of coal combustion residues; ‘‘(g) DELEGATION.— enhance planned and ongoing laboratory and ‘‘(3) evaluate the impact of the use of selec- ‘‘(1) IN GENERAL.—Each State may develop field research and modeling analyses, and tive catalytic reduction on mercury emis- and submit to the Administration a proce- conduct new research and analyses to sions from the combustion of all coal types; dure for implementing and enforcing stand- produce peer-reviewed information con- ‘‘(4) evaluate the potential of integrated ards promulgated under this section for af- cerning the human health and environ- gasification combined cycle to adequately fected units located in such State. If the Ad- mental effects of mercury and particulate control mercury; ministrator finds the State procedure is ade- matter and the contribution of United States ‘‘(5) expand current programs by the Ad- quate, the Administrator shall delegate to electrical generating units to those effects. ministrator to conduct research and pro- such State any authority the Administrator Such information shall be included in the re- mote, lower cost CEMS capable of providing has under this Act to implement and enforce port under subsection (d). In addition, such real-time measurements of both speciated such standards. research and analyses shall— and total mercury and integrated compact ‘‘(2) ENFORCEMENT.—Nothing in this sub- ‘‘(1) improve understanding of the rates CEMS that provide cost-effective real-time section shall prohibit the Administrator and processes governing chemical and phys- measurements of sulfur dioxide, nitrogen ox- from enforcing any applicable standard ical transformations of mercury in the at- ides, and mercury; under this section. mosphere, including speciation of emissions ‘‘(6) expand lab- and pilot-scale mercury ‘‘(h) VIOLATIONS.—After the effective date from electricity generation and the trans- and multi-pollutant control programs by the of standards promulgated under this section, port of these species; Secretary of Energy and the Administrator, it shall be unlawful for any owner or oper- ‘‘(2) improve understanding of the con- including development of enhanced sorbents ator of any affected unit to operate such unit tribution of mercury emissions from elec- and scrubbers for use on all coal types;

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00239 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S346 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(7) characterize mercury emissions from ‘‘(vi) status of mercury and its trans- that the national ambient air quality stand- low-rank coals, for a range of traditional formation products in fish; ards are achieved provided that interference control technologies, like scrubbers and se- ‘‘(vii) causes and effects of atmospheric with any program will be deemed not to lective catalytic reduction; and deposition, including changes in surface occur, with respect to each nonattainment ‘‘(8) improve low cost combustion modi- water quality, forest and soil conditions; area located wholly or partially within the fications and controls for dry-bottom boilers. ‘‘(viii) occurrence and effects of coastal eu- State, if on the date of submission of a com- ‘‘(d) ENVIRONMENTAL ACCOUNTABILITY.— trophication and episodic acidification, par- plete permit application and throughout a ‘‘(1) MONITORING AND ASSESSMENT.—The ticularly with respect to high elevation wa- continuous period of three years imme- Administrator shall conduct a program of tersheds; and diately preceding such date, the nonattain- environmental monitoring and assessment to ‘‘(ix) reduction in atmospheric deposition ment area was in full compliance with all re- track on a continuing basis, changes in rates that should be achieved to prevent or quirements of this Act, including but not human health and the environment attrib- reduce adverse ecological effects. limited to requirements for State Implemen- utable to the emission reductions required ‘‘(B) The report under this subparagraph tation Plans; under this title. Such a program shall— shall address the relative contribution of the ‘‘(3) for a reconstructed unit, prior to be- ‘‘(A) develop and employ methods to rou- United States to world-wide emissions as ginning operation, the unit must comply tinely monitor, collect, and compile data on well as a comparison of the stringency of fos- with either the performance standards of the status and trends of mercury and its sil fuel-fired requirements under the Act to section 481 or best available control tech- transformation products in emissions from other countries. nology as defined in part C of title I for the affected facilities, atmospheric deposition, ‘‘SEC. 483. MAJOR SOURCE PRECONSTRUCTION pollutants whose hourly emissions will in- surface water quality, and biological sys- REVIEW REQUIREMENTS AND BEST crease at the unit’s maximum capacity; and tems. Emphasis shall be placed on those AVAILABLE RETROFIT CONTROL ‘‘(4) the State must provide for an oppor- TECHNOLOGY REQUIREMENTS; AP- methods that— tunity for interested persons to comment on PLICABILITY TO AFFECTED UNITS. the Class I area protections and ‘‘(i) improve the ability to routinely meas- ‘‘(a) MAJOR SOURCE EXEMPTION.—An af- preconstruction requirements as set forth in ure mercury in dry deposition processes; fected unit shall be considered neither a this section. ‘‘(ii) improve understanding of the spatial major emitting facility or major stationary ‘‘(d) DEFINITIONS.—For purposes of this sec- and temporal distribution of mercury deposi- source nor a part of a major emitting facility tion: tion in order to determine source-receptor or major stationary source, for purposes of ‘‘(1) AFFECTED UNIT.—The term ‘affected relationships and patterns of long-range, re- compliance with the requirements of parts C unit’ means any unit that is subject to emis- gional, and local deposition; and part D of title I, and shall not otherwise sion limitations under subpart 2 of part B, ‘‘(iii) improve understanding of aggregate be subject to the requirements of section subpart 2 of part C, or part D. exposures and additive effects of 169A or 169B, for a period of 20 years after the ‘‘(2) CONSTRUCTION.—The term ‘construc- methylmercury and other pollutants; and date of enactment of this section. This appli- tion’ includes the construction of a new af- ‘‘(iv) improve understanding of the effec- cability provision only applies to affected fected unit and the modification of any af- tiveness and cost of mercury emissions con- units that are either subject to the perform- fected unit. trols; ance standards of section 481 or meet the fol- ‘‘(3) MODIFICATION.—The term ‘modifica- ‘‘(B) modernize and enhance the national lowing requirements within 3 years after the tion’ means any physical change in, or air quality and atmospheric deposition mon- date of enactment of the Clear Skies Act of change in the method of operation of, an af- itoring networks in order to cost-effectively 2005: fected unit that increases the maximum expand and integrate, where appropriate, ‘‘(1) The owner or operator of the affected hourly emissions of any pollutant regulated monitoring capabilities for sulfur, nitrogen, unit properly operates, maintains and re- under this Act above the maximum hourly and mercury to meet the assessment and re- pairs pollution control equipment to limit emissions achievable at that unit during the porting requirements of this section; emissions of particulate matter, or the five years prior to the change or that results ‘‘(C) perform and enhance long-term moni- owner or operator of the affected unit is sub- in the emission of any pollutant regulated toring of sulfur, nitrogen, and mercury, and ject to an enforceable permit issued pursuant under this Act and not previously emitted. parameters related to acidification, nutrient to title V or a permit program approved or ‘‘(e) SAVINGS CLAUSE.—Nothing in this sec- enrichment, and mercury bioaccumulation promulgated as part of an applicable imple- tion shall preclude or deny the right of any in freshwater and marine biota; mentation plan to limit the emissions of par- State or political subdivision thereof to ‘‘(D) maintain and upgrade models that de- ticulate matter from the affected unit to 0.03 adopt to enforce any regulation, require- scribe the interactions of emissions with the lb/mmBtu within eight years after the date ment, limitation, or standard relating to af- atmosphere and resulting air quality impli- of enactment of the Clear Skies Act of 2005, fected units that is more stringent than a cations and models that describe the re- and regulation, requirement, limitation, or sponse of ecosystems to atmospheric deposi- ‘‘(2) The owner or operator of the affected standard in effect under this section or under tion; and unit uses good combustion practices to mini- any other provision of this Act.’’. ‘‘(E) assess indicators of ecosystems health mize emissions of carbon monoxide. Good related to sulfur, nitrogen, and mercury, in- combustion practices may be accomplished SEC. 3. OTHER AMENDMENTS. cluding characterization of the causes and through control technology, combustion (a) TITLE I.—Title I of the Clean Air Act is effects of episodic exposure to air pollutants technology improvements, or workplace amended as follows: and evaluation of recovery. practices. (1) In section 103 by repealing subpara- ‘‘(2) REPORTING REQUIREMENTS.—Not later ‘‘(b) CLASS I AREA PROTECTIONS.—Notwith- graphs (E) and (F). than January 1, 2008, and not later than standing the provisions of subsection (a), an (2) In section 107(d)(1)(A)— every 4 years thereafter, the Administrator affected unit located within 50 km of a Class (i) by striking ‘‘or’’ at the end of clause shall provide a peer reviewed report to the I area on which construction commences (ii); Congress on the costs, benefits, and effec- after the date of enactment of the Clear (ii) by striking the period at the end of tiveness of emission reduction programs Skies Act of 2005 is subject to those provi- clause (iii) and inserting ‘‘, or’’; and under this title. sions under part C of title I pertaining to the (iii) by adding at the end the following: ‘‘(A) The report under this subparagraph review of a new or reconstructed major sta- ‘‘(iv) notwithstanding clauses (i) through shall address the relative contribution of tionary source’s impact on a Class I area. (iii) and subsection (d)(3), if requested by a emission reductions from U.S. electricity ‘‘(c) PRECONSTRUCTION REQUIREMENTS.— State, an area may be redesignated as transi- generation under this title compared to the Each State shall include in its plan under tional for the PM 2.5 national primary or emission reductions achieved under other ti- section 110, as program to provide for the secondary ambient air quality standards or tles of the Clean Air Act with respect to— regulation of the construction of an affected the 8-hour ozone national primary or sec- ‘‘(i) actual and projected emissions of sul- unit that ensures that the following require- ondary ambient air quality standard if— fur dioxide, nitrogen oxides, and mercury; ments are met prior to the commencement ‘‘(I) the Administrator has performed air ‘‘(ii) average ambient concentrations of of construction of an affected unit— quality modeling and, in the case of an area sulfur dioxide and nitrogen oxides trans- ‘‘(1) in an area designated as attainment or that needs additional local control measures, formation products, related air quality pa- unclassifiable under section 107(d), the owner the State has performed supplemental air rameters, and indicators of reductions in or operator of the affected unit must dem- quality modeling, demonstrating that the human exposure; onstrate to the State that the emissions in- area will attain the applicable standard or ‘‘(iii) status and trends in total atmos- crease from the construction or operation of standards not later than December 31, 2015; pheric deposition of sulfur, nitrogen, and such unit will not cause, or contribute to, air ‘‘(II) such modeling demonstration and all mercury, including regional estimates of pollution in excess of any national ambient necessary local controls have been approved total atmospheric deposition; air quality standard; into the State implementation plan not later ‘‘(iv) status and trends in visibility; ‘‘(2) in an area designated as nonattain- than 1 year after the date of enactment of ‘‘(v) status of terrestrial and aquatic eco- ment under section 107(d), the State must de- the Clear Skies Act of 2005; and systems (including forests and forested wa- termine that the emissions increase from the ‘‘(III) the redesignation is made not later tersheds, streams, lakes, rivers, estuaries, construction or operation of such unit will than 180 days after the date of that ap- and nearcoastal waters); not interfere with any program to assure proval.’’

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(3) In section 110 as follows: ‘‘(3) CONSEQUENCES OF FAILURE TO ATTAIN unit that is subject to emission limitations (A) By amending clause (i) of subsection BY 2015.—No later than June 30, 2016, the Ad- under subpart 2 of part B, subpart 2 of part (a)(2)(D) by inserting ‘‘except as provided in ministrator shall determine whether each C, or part D, or is a designated unit under subsection (q),’’ before the word ‘‘prohib- area designated as transitional for the 8-hour section 407. iting’’. ozone standard or for the PM 2.5 standard ‘‘(2) FINDING FOR AFFECTED UNITS.—To the (B) By adding the following new sub- has attained that standard. If the Adminis- extent that any petition submitted under sections at the end thereof: trator determines that a transitional area subsection (b) after the date of enactment of ‘‘(q) REVIEW OF CERTAIN PLANS.— has not attained the standard, the area shall the Clear Skies Act of 2005 seeks a finding ‘‘(1) IN GENERAL.—The Administrator shall, be redesignated as nonattainment within one for any affected unit, then, notwithstanding in reviewing, under subsection (a)(2)(D)(i), year of the determination and the State any provision in subsections (a) through (c) any plan with respect to affected units, with- shall be required to submit a State imple- to the contrary: in the meaning of section 126(d)(l)— mentation plan revision satisfying the provi- ‘‘(A) In determining whether to make a ‘‘(A) consider, among other relevant fac- sions of section 172 within three years of re- finding under subsection (b) for any affected tors, emissions reductions required to occur designation as nonattainment.’’. unit, the Administrator shall consider, by the attainment date or dates of any rel- (4) In section 111(b)(1) by adding the fol- among other relevant factors, emissions re- evant nonattainment areas in the other lowing new subparagraph (C) after subpara- ductions required to occur by the attainment State or States; graph (B): date or dates of any relevant nonattainment ‘‘(B) not require submission of plan provi- ‘‘(C) No standards of performance promul- areas in the petitioning State or political sions mandating emissions reductions from gated under this section shall apply to units subdivision. such affected units, unless the Administrator subject to regulations promulgated pursuant ‘‘(B) The Administrator may not determine determines that— to section 481.’’. that affected units emit, or would emit, any ‘‘(i) emissions from such units may be re- (5) In section 112: air pollutant in violation of the prohibition duced at least as cost-effectively as emis- (A) By amending paragraph (1) of sub- of section 110(a)(2)(D)(i) unless that Adminis- sions reductions in the State or each other section (c) to read as follows: trator determines that— State from each other principal category of ‘‘(1) IN GENERAL.—Not later than 12 months ‘‘(i) such emissions may be reduced at least sources of the relevant pollutant, pollutants, after November 15, 1990, the Administrator as cost-effectively as emissions from each or pre-cursors thereof, including industrial shall publish, and shall from time to time, other principal category of sources of sulfur boilers, on-road mobile sources, and off-road but not less often than every eight years, re- dioxide or nitrogen oxides, including indus- mobile sources, and any other category of vise, if appropriate, in response to public trial boilers, on-road mobile sources, and off- sources that the Administrator may iden- comment or new information, a list of all road mobile sources, and any other category tify, and categories and subcategories of major of sources that the Administrator may iden- ‘‘(ii) reductions in such emissions will im- sources and area sources (listed under para- tify; and prove air quality in the other State’s or graph (3)) of the air pollutants listed pursu- ‘‘(ii) reductions in such emissions will im- States’ nonattainment areas at least as cost- ant to subsection (b). Electric utility steam prove air quality in the petitioning State’s effectively as reductions in emissions in the generating units not subject to section 3005 nonattainment area or areas at least as cost- State or each other State from each other of the Solid Waste Disposal Act shall not be effectively as reductions in emissions from principal category of sources of the relevant included in any category or subcategory list- each other principal category of sources of pollutant, pollutants, or pre-cursors thereof, ed under this subsection. The Administrator sulfur dioxide or nitrogen oxides to the max- to the maximum extent that a methodology shall have the authority to regulate the imum extent that a methodology is reason- is reasonably available to make such a deter- emission of hazardous air pollutants listed ably available to make such a determina- mination; under section 112(b), other than mercury tion. ‘‘(C) develop an appropriate peer reviewed compounds, by electric utility steam gener- In making the determination under clause methodology for making determinations ating units, provided that any determination (ii), the Administrator shall use the best under subparagraph (B) by December 31, 2006; shall be based on public health concerns and, available peer-reviewed models and method- and on an individual source basis shall: consider ology that consider the proximity of the ‘‘(D) not require submission of plan provi- the effects of emissions controls installed or source or sources to the petitioning State or sions subjecting affected units, within the anticipated to be installed in order to meet political subdivision and incorporate other meaning of section 126(d)(1), to requirements other emission reduction requirements under sources characteristics. with an effective date prior to December 31, this Act by 2018; and, be based on a peer re- ‘‘(C) The Administrator shall develop an 2014. viewed study with notice and opportunity to appropriate peer reviewed methodology for ‘‘(2) PROXIMITY.—In making the determina- comment, to be completed not before Janu- making determinations under subparagraph tion under clause (ii) of subparagraph (B) of ary 2015. Any such regulations shall be pro- (B) by December 31, 2006. paragraph (1), the Administrator will use the mulgated within, and shall not take effect ‘‘(D) The Administrator shall not make best available peer-reviewed models and before, the date eight years after the com- any findings with respect to an affected unit methodology that consider the proximity of mencement date of the requirements set under this section prior to December 1, 2011. the source or sources to the other State or forth in section 472. To the extent prac- For any petition submitted prior to January States and incorporate other source charac- ticable, the categories and subcategories 1, 2010, the Administrator shall make a find- teristics. listed under this subsection shall be con- ing or deny the petition by the December 31, ‘‘(3) EFFECT ON REGULATIONS.—Nothing in sistent with the list of source categories es- 2011. paragraph (1) shall be interpreted to require tablished pursuant to section 111 and part C. ‘‘(E) The Administrator, by rulemaking, revisions to the provisions of 40 CFR parts Nothing in the preceding sentence limits the shall extend the compliance and implemen- 51.121 and 51.122 (2001). Administrator’s authority to establish sub- tation deadlines in subsection (c) to the ex- ‘‘(r) TRANSITIONAL AREAS.— categories under this section, as appro- tent necessary to assure that no affected ‘‘(1) MAINTENANCE.— priate.’’. unit shall be subject to any such deadline ‘‘(A) SUBMISSION OF INVENTORY AND ANAL- (B) By amending subparagraph (A) of sub- prior to January 1, 2014.’’. YSIS.—By December 31, 2011, each area des- section (n)(1) to read as follows: (b) TITLE III.—Section 307(d)(1)(G) of title ignated as transitional pursuant to section ‘‘(A) STUDY.—The Administrator shall per- III of the Clean Air Act is amended to read 107(d)(1) shall submit an updated emission in- form a study of the hazards to public health as follows: ventory and an analysis of whether growth reasonably anticipated to occur as a result of ‘‘(G) the promulgation or revision of any in emissions, including growth in vehicle emissions by electric utility steam gener- regulation under title IV,’’. miles traveled, will interfere with attain- ating units of pollutants listed under sub- (c) NOISE POLLUTION.—Title IV of the Clean ment by December 31, 2014. section (b) after imposition of the require- Air Act (relating to noise pollution) (42 ‘‘(B) REVIEW.—No later than December 31, ments of this Act. The Administrator shall U.S.C. 7641 et seq.) is redesignated as title 2011, the Administrator shall review each report the results of this study to the Con- VII and amended by renumbering sections transitional area’s maintenance analysis, gress within three years after November 15, 401 through 403 as sections 701 through 703, and, if the Administrator determines that 1990.’’ respectively, and conforming all cross-ref- growth in emissions will interfere with at- (6) Section 126 is amended as follows: erences thereto accordingly. tainment by December 31, 2014, the Adminis- (A) By replacing ‘‘section 110(a)(2)(D)(ii) or (d) SECTION 406.—Title IV of the Clean Air trator shall consult with the State and de- this section’’ in subsection (b) with ‘‘section Act Amendments of 1990 (relating to acid termine what action, if any, is necessary to 110(a)(2)(D)(i)’’. deposition control) is amended by repealing assure that attainment will be achieved by (B) In the language at end of subsection (c) section 406 (industrial sulfur dioxide emis- December 31, 2014. by striking ‘‘section 110(a)(2)(D)(ii)’’ and in- sions). ‘‘(2) PREVENTION OF SIGNIFICANT DETERIORA- serting ‘‘section 110(a)(2)(D)(i)’’ and deleting (e) MONITORING.—Section 821 (a) of title TION.—Each area designated as transitional the last sentence. VIII of the Clean Air Act Amendments of pursuant to section 107(d)(1) shall be treated (D) By adding at the end the following: 1990 (miscellaneous provisions) is amended to as an attainment or unclassifiable area for ‘‘(d) DEFINITION OF AFFECTED UNIT.— read as follows: purposes of the prevention of significant de- ‘‘(1) IN GENERAL.—For purposes of this sub- ‘‘(a) MONITORING.—The Administrator shall terioration provisions of part C of this title. section, the term ‘affected unit’ means any promulgate regulations within eighteen

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00241 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S348 CONGRESSIONAL RECORD — SENATE January 24, 2005 months after November 15, 1990, to require taxes. If these payments were made de- year in which such amount is paid shall be that all affected sources subject to subpart 1 ductible, the cost of homeownership chargeable to capital account and shall be of part B of title IV of the Clean Air Act as would go down and more families treated as paid in such periods to which so of December 31, 2009, shall also monitor car- would be able to buy homes. It is esti- allocated. No deduction shall be allowed for bon dioxide emissions according to the same the unamortized balance of such account if timetable as in section 405(b). The regula- mated that the Mortgage Insurance such mortgage is satisfied before the end of tions shall require that such data be re- Fairness Act would increase the num- its term. The preceding sentences shall not ported to the Administrator. The provisions ber of homeowners by 300,000 per year. apply to amounts paid for qualified mortgage of section 405(e) of title IV of the Clean Air Extending tax deductions to mort- insurance provided by the Veterans Adminis- Act shall apply for purposes of this section gage insurance will help to make the tration or the Rural Housing Administra- in the same manner and to the same extent dream of owning a home attainable for tion.’’. as such provision applies to the monitoring more Americans. We came very close SEC. 3. INFORMATION RETURNS RELATING TO and data referred to in section 405. The Ad- to enacting this legislation last year MORTGAGE INSURANCE. ministrator shall implement this subsection Section 6050H of the Internal Revenue Code under 40 CFR part 75 (2002), amended as ap- when it was included in the Senate version of the JOBS Act. Unfortu- of 1986 (relating to returns relating to mort- propriate by the Administrator.’’. gage interest received in trade or business nately, in the end we were not able to from individuals) is amended by adding at By Mr. SMITH (for himself and complete action on this bill. I look for- the end the following new subsection: Mrs. LINCOLN): ward to again working with my col- ‘‘(h) RETURNS RELATING TO MORTGAGE IN- S. 132. A bill to amend the Internal leagues to see this legislation is passed SURANCE PREMIUMS.— Revenue Code of 1986 to allow a deduc- and signed into law. I thank you for ‘‘(1) IN GENERAL.—The Secretary may pre- tion for premiums on mortgage insur- the opportunity to speak today, and I scribe, by regulations, that any person who, ance; to the Committee on Finance. urge my colleagues to support this im- in the course of a trade or business, receives Mr. SMITH. Mr. President, today, I portant bi-partisan legislation. I ask from any individual premiums for mortgage am reintroducing important legislation insurance aggregating $600 or more for any unanimous consent that the text of calendar year, shall make a return with re- to help more Americans realize the this legislation be printed in the spect to each such individual. Such return dream of homeownership. The Mort- RECORD. shall be in such form, shall be made at such gage Insurance Fairness Act would There being no objection, the bill was time, and shall contain such information as make mortgage insurance payment ordered to be printed in the RECORD, as the Secretary may prescribe. premiums tax deductible. In doing so, follows: ‘‘(2) STATEMENT TO BE FURNISHED TO INDI- it will help more lower-income Ameri- S. 132 VIDUALS WITH RESPECT TO WHOM INFORMATION cans purchase homes for their families. IS REQUIRED.—Every person required to make Be it enacted by the Senate and House of Rep- a return under paragraph (1) shall furnish to It is widely recognized that home- resentatives of the United States of America in ownership helps to create stable and each individual with respect to whom a re- Congress assembled, turn is made a written statement showing safe communities. As such, the Federal SECTION 1. SHORT TITLE. such information as the Secretary may pre- Government has long sought to in- This Act may be cited as the ‘‘Mortgage scribe. Such written statement shall be fur- crease homeownership. President Bush Insurance Fairness Act’’. nished on or before January 31 of the year has announced a goal of 5.5 million new SEC. 2. PREMIUMS FOR MORTGAGE INSURANCE. following the calendar year for which the re- homeowners by the year 2010. Achiev- (a) IN GENERAL.—Paragraph (3) of section turn under paragraph (1) was required to be ing that goal requires helping those 163(h) of the Internal Revenue Code of 1986 made. that have typically had difficulty pur- (relating to qualified residence interest) is ‘‘(3) SPECIAL RULES.—For purposes of this chasing homes—young people, low-in- amended by adding after subparagraph (D) subsection— the following new subparagraph: ‘‘(A) rules similar to the rules of sub- come families, members of minority ‘‘(E) MORTGAGE INSURANCE PREMIUMS section (c) shall apply, and groups. TREATED AS INTEREST.— ‘‘(B) the term ‘mortgage insurance’ Government and private mortgage ‘‘(i) IN GENERAL.—Premiums paid or ac- means— insurance programs help first-time, crued for qualified mortgage insurance by a ‘‘(i) mortgage insurance provided by the low-income and veteran borrowers af- taxpayer during the taxable year in connec- Veterans Administration, the Federal Hous- ford to purchase homes. The Veterans tion with acquisition indebtedness with re- ing Administration, or the Rural Housing Affairs (VA), Federal Housing Author- spect to a qualified residence of the taxpayer Administration, and ity (FHA), Regional Housing Authority shall be treated for purposes of this sub- ‘‘(ii) private mortgage insurance (as de- fined by section 2 of the Homeowners Protec- (RHA) and Private Mortgage Insurance section as qualified residence interest. ‘‘(ii) PHASEOUT.—The amount otherwise al- tion Act of 1998 (12 U.S.C. 4901), as in effect (PMI) programs allow buyers to make a lowable as a deduction under clause (i) shall on the date of the enactment of this sub- down payment of 3 percent or less of be reduced (but not below zero) by 10 percent section).’’. the appraised value. For many lower- of such amount for each $1,000 ($500 in the SEC. 4. EFFECTIVE DATE. and middle-income families, mortgage case of a married individual filing a separate The amendments made by this Act shall insurance makes it possible for them to return) (or fraction thereof) that the tax- apply to amounts paid or accrued after the buy their first home. payer’s adjusted gross income for the taxable date of enactment of this Act in taxable In Oregon, more than 137,000 families year exceeds $100,000 ($50,000 in the case of a years ending after such date. held mortgages with either FHA or pri- married individual filing a separate re- turn).’’. By Mr. TALENT (for himself and vate mortgage insurance in 2002. In (b) DEFINITION AND SPECIAL RULES.—Para- Mr. FEINGOLD): 2001, 62 percent of the insured home graph (4) of section 163(h) of the Internal purchases in Oregon were low-income Revenue Code of 1986 (relating to other defi- S. 133. A bill to amend section 302 of borrowers, and insured mortgages cov- nitions and special rules) is amended by add- the PROTECT Act to modify the stand- ered 25 percent of all home purchase ing at the end the following new subpara- ards for the issuance of alerts through loans that year. graphs: the AMBER Alert communications net- Nationwide, mortgage insurance cov- ‘‘(E) QUALIFIED MORTGAGE INSURANCE.—The work; to the Committee on the Judici- ers over half of home loans made to Af- term ‘qualified mortgage insurance’ means— ary. ‘‘(i) mortgage insurance provided by the Mr. TALENT. Mr. President, I ask rican American and Hispanic bor- Veterans Administration, the Federal Hous- rowers. Similarly, over half of the ing Administration, or the Rural Housing unanimous consent that the text of the loans to borrowers with incomes below Administration, and bill be printed in the RECORD. the median income were covered by ‘‘(ii) private mortgage insurance (as de- There being no objection, the bill was mortgage insurance. The people who fined by section 2 of the Homeowners Protec- ordered to be printed in the RECORD, as use mortgage insurance are regular tion Act of 1998 (12 U.S.C. 4901), as in effect follows: working families who live in every on the date of the enactment of this subpara- S. 133 community throughout the country. In graph). ‘‘(F) SPECIAL RULES FOR PREPAID QUALIFIED Be it enacted by the Senate and House of Rep- all, more than twelve million Amer- MORTGAGE INSURANCE.—Any amount paid by resentatives of the United States of America in ican families pay mortgage insurance. the taxpayer for qualified mortgage insur- Congress assembled, Currently, these borrowers are not ance that is properly allocable to any mort- SECTION 1. SHORT TITLE. allowed to deduct the cost of their gage the payment of which extends to peri- This Act may be cited as the ‘‘Tory Jo’s mortgage insurance from their Federal ods that are after the close of the taxable AMBER Response Act’’.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00242 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S349 SEC. 2. MINIMUM STANDARDS FOR ISSUANCE ment between the National Park Serv- ‘‘(B) provided by the Secretary of the Inte- AND DISSEMINATION OF ALERTS ice and the California Department of rior to the appropriate officers of Del Norte THROUGH AMBER ALERT COMMU- Parks and Recreation. This partnership and Humboldt Counties, California.’’; and NICATIONS NETWORK. (3) in the second sentence— Section 302(b) of the PROTECT Act (42 is viewed as a model of interagency co- (A) by striking ‘‘The Secretary’’ and in- U.S.C. 5791a(b)) is amended by adding at the operative management efforts and will serting the following: end the following: provide for more efficient and ‘‘(3) The Secretary;’’ and ‘‘(5) The minimum standards shall, to the costeffective management of an eco- (B) by striking ‘‘one hundred and six thou- maximum extent practicable (as determined logically significant resource. sand acres’’ and inserting ‘‘133,000 acres’’. by the Coordinator in consultation with This bill enjoys strong support from State and local law enforcement agencies), local and Federal officials, including By Mrs. FEINSTEIN: allow local law enforcement officials to S. 136. A bill to authorize the Sec- issue, and to provide for the dissemination Del Norte County and the Department of the Interior. Given this support and retary of the Interior to provide sup- of, an alert through the AMBER Alert com- plemental funding and other services munications network to facilitate the recov- lack of controversy, I believe this leg- ery of an abducted newborn.’’. islation to be of great importance to that are necessary to assist certain SEC. 3. DEFINITION. ensure that our Redwood National local school districts in the State of Title III of the PROTECT Act (42 U.S.C. Park is further protected. California in providing education serv- 5791 et seq.) is amended by adding at the end I have long held a deep interest in ices for students attending schools lo- the following: protecting California’s magnificent cated within Yosemite National Park, ‘‘SEC. 306. DEFINITION. Redwoods. The coast redwood, the se- to authorize the Secretary of the Inte- ‘‘For purposes of this title, the term ‘child’ quoia sempervirens, is native only to rior to adjust the boundaries of the means— the West Coast where it stands in a Golden Gate National Recreation Area; ‘‘(1) an individual under 18 years of age; or to the Committee on Energy and Nat- ‘‘(2) a newborn.’’. narrow band from the tip of the Big Sur Coast to the Chetco River, just ural Resources. Mrs. FEINSTEIN. I rise today to in- By Mrs. FEINSTEIN (for herself north of the California-Oregon border. troduce a bill that combines needed and Mrs. BOXER): The redwood stands taller than any help for small Yosemite schools, and an S. 134. A bill to adjust the boundary other tree in the world and traces its addition to the beautiful Golden Gate of Redwood National Park in the State lineage to among the oldest of living National Recreation Area. Each of of California; to the Committee on En- things. The cathedrals formed by these these bills individually has passed both ergy and Natural Resources. ancient trees inspire the best in us as a the House and Senate in previous Con- Mrs. FEINSTEIN. Mr. President, I people. The redwood forests of Cali- gresses. am pleased to introduce legislation co- fornia are a national and worldwide The first title of this legislation pro- sponsored by Senator BOXER to adjust treasure that is ours to protect and vides critical funds to three small the boundary of Redwood National preserve. schools nestled in the heart of Yosem- In 1966, the Headwaters Agreement Park in the State of California to in- ite National Park and authorizes the was negotiated in part in my offices to clude the addition of the Mill Creek Yosemite Regional Transportation protect approximately 7,500 acres of old property. This continues the effort ini- System to shuttle visitors in and out of tiated in the last Congress with the growth redwoods, which was the larg- the park. leadership of Congressman MIKE est grove of redwoods held in private Approximately 130 children of park THOMPSON, to solidify and expand the ownership at the time. It is my great service employees are taught in the co-operative management relationship pleasure today to introduce this legis- three elementary small schools located between the United States Government lation to extend our national commit- in Yosemite National Park—Wawona, and the State of California, working ment to collaboration in preservation El Portal, and Yosemite Valley ele- together to protect forever the ancient of the redwoods and the watersheds mentary schools. majesty of the redwood forest. they anchor. These schools represent a dying breed In 2002, the California Department of I applaud Congressman MIKE THOMP- of education models; they are small Parks and Recreation acquired from SON’s commitment to this issue and schools that teach children who live in the Save-the-Redwoods League 25,000 urge my colleagues to support this leg- remote communities and are taught by acres of forest land known as the Mill islation. one or a group of teachers. At El Por- Creek property in Del Norte County, I ask unanimous consent that the tal, three teachers instruct 53 students which is contiguous with the Redwood text of the bill be printed in the in seven grades. Wawona has 17 stu- National and State parks boundary. RECORD. dents in 7 grades who are taught by one This bill would include within the park There being no objection, the bill was teacher/principal. boundary the Mill Creek acquisition ordered to be printed in the RECORD, as And Yosemite Valley serves 60 stu- and about 900 acres of land acquired follows: dents in 8 grades who are taught by and added to the State redwood parks S. 134 two teachers. since the 1978 expansion of the Red- Be it enacted by the Senate and House of Rep- The remote location of these schools, wood National Park boundary. There resentatives of the United States of America in their small sizes and California’s would be no Federal costs for land ac- Congress assembled, unique method for funding education, SECTION 1. SHORT TITLE. quisition or development resulting This Act may be cited as the ‘‘Redwood have all contributed to the schools from this legislation. National Park Boundary Adjustment Act of amassing a combined deficit of $290,000. Approval of the expansion of the 2005’’. In their efforts to continue to provide boundary of Redwood National Park to SEC. 2. REDWOOD NATIONAL PARK BOUNDARY basic educational services to students, include the headwaters of Mill Creek ADJUSTMENT. the schools have had to cut supple- will complete the vision of the Red- Section 2(a) of the Act of Public Law 90–545 mental instruction that would nor- wood Park embraced by Senator (16 U.S.C. 79b(a)) is amended— mally be available to students taught Kuchel in S.1370 that he introduced in (1) in the first sentence, by striking ‘‘(a) outside of the park. The area’’ and all that follows through the Some have suggested that these 1967, a vision dating back to the period at the end and inserting the following: McLaughlin-Cook report issued by the ‘‘(a)(1) The Redwood National Park consists schools consolidate into one to pool National Park Service in 1937. Protec- of the land generally depicted on the map en- their limited resources. While this may tion of the headwaters of Mill Creek titled ‘Redwood National Park, Revised seem to solve the problem, you must will secure the long term viability of Boundary’, numbered 167/60502, and dated understand that many of these stu- the ancient redwoods already within February, 2003.’’; dents already travel many miles on Redwood National and State Park. It (2) by inserting after paragraph (1) (as des- treacherous mountainous roads to at- ignated by paragraph (1)) the following: tend their current schools. If the three would permanently safeguard the coho ‘‘(2) The map referred to in paragraph (1) salmon who return to spawn in the shall be— schools were to consolidate, this prob- clear, cold waters of this forest. ‘‘(A) on file and available for public inspec- lem would be exacerbated, requiring These lands will be managed by the tion in the appropriate offices of the Na- many students to make a 2 hour com- same cooperative management agree- tional Park Service; and mute to their new schools.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00243 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S350 CONGRESSIONAL RECORD — SENATE January 24, 2005 I do not believe this is a viable option former Golden Gate National Recre- Union Elementary School District and the and that is why I support this legisla- ation Area Advisory Commission, the Mariposa Unified School District in the tion. San Mateo County Board of Super- State of California for educational services Last year, Senator BINGAMAN, Con- visors, the National Park Service, and to students— (A) who are dependents of persons engaged gressman RADANOVICH and I worked out the California State Farm Bureau. It in the administration, operation, and main- a compromise on this legislation that also has the endorsement of the San tenance of Yosemite National Park; or would help the schools while protecting Francisco Chronicle and the San Jose (B) who live within or near the park upon the National Park Service’s budget. Mercury News. I know of no opposition real property owned by the United States. The compromise includes the following to this bill. (2) The Secretary’s authority to make pay- terms: Expanding the boundary of the Gold- ments under this section shall terminate if For fiscal year 2006 through 2009, the en Gate National Recreation Area to the State of California or local education Secretary of the Interior may provide agencies do not continue to provide funding include Rancho Corral de Tierra to the schools referred to in subsection (a) at up to $400,000 in funds to the Bass Lake through such a beneficial partnership Union Elementary School District and per student levels that are no less than the is an opportunity not to be missed. A amount provided in fiscal year 2005. the Mariposa Unified School District vast land within a major metropolitan (b) LIMITATION ON USE OF FUNDS.—Pay- for educational services to students area that offers extraordinary scenic ments made under this section shall only be who are dependents of persons engaged views of the Pacific coastline and the used to pay public employees for educational in the administration, operation, and greater Bay Area, a place with plants services provided in accordance with sub- maintenance of the Park or students found nowhere else on earth find ref- section (a). Payments may not be used for who live at or near the Park; the Sec- construction, construction contracts, or uge, a home for rare and endangered major capital improvements. retary can only provide the funds if the animals, is available now for protec- State of California and local agencies (c) LIMITATION ON AMOUNT OF FUNDS.—Pay- tion and enjoyment. We have the ments made under this section shall not ex- maintain 2005 per-student funding lev- chance to enjoy this special land and to ceed the lesser of— els to the schools, and the Secretary leave a lasting legacy for our children (1) $400,000 in any fiscal year; or also must make sure that the assist- and our grandchildren. (2) the amount necessary to provide stu- ance to the schools does not reduce the California’s national parks are truly dents described in subsection (a) with edu- cational services that are normally provided remaining funding available to Yosem- invaluable and the park that this bill ite National Park below fiscal year 2005 and generally available to students who at- supports offers an opportunity for visi- tend public schools elsewhere in the State of levels. tors and residents to enjoy unique na- Furthermore, this legislation allows California. tional habitats and offers a unique (d) SOURCE OF PAYMENTS.—(1) Except as the Park Service to allot federal funds chance for the National Park Service otherwise provided in this subsection, the for the continuing operation of a bus and the community to work together, Secretary may use funds available to the Na- service that shuttles visitors through tional Park Service from appropriations, do- Yosemite National Park—the Yosemite not only to protect the environment, but also the interests of the nearby nations, or fees. Area Regional Transportation System. (2) Funds from the following sources shall The federally funded demonstration communities and national and inter- not be used to make payments under this project that allowed YARTS to offer national visitors. section: services on a temporary basis expired This bill enjoys strong support from (A) Any law authorizing the collection or in May 2002 and since then, YARTS has local and State officials and I hope expenditure of entrance or use fees at units leveraged local funds to ensure that that it will have as much strong bipar- of the National Park System, including the tisan support this Congress, as it did Land and Water Conservation Fund Act of services were not discontinued. 1965 (16 U.S.C. 460l–4 et seq.); the recreational last Congress. Congressman TOM LAN- Both the Park Service and YARTS fee demonstration program established are supportive of continuing their mu- TOS plans to introduce companion leg- under section 315 of the Department of the tually beneficial agreement. This legis- islation for this bill in the House and I Interior and Related Agencies Appropria- lation would do just that by taking the applaud his leadership on this issue. tions Act, 1996 (16 U.S.C. 460l–6a note); and burden off local entities and providing I urge my colleagues to support this the National Park Passport Program estab- the necessary assistance that this serv- bill. I ask unanimous consent that the lished under section 602 of the National ice needs. text of the bill be printed in the Parks Omnibus Management Act of 1998 (16 I am also pleased to introduce today RECORD. U.S.C. 5992). a second title in this legislation to There being no objection, the bill was (B) Emergency appropriations for flood re- covery at Yosemite National Park. allow the National Park Service to ex- ordered to be printed in the RECORD, as (3)(A) The Secretary may use an author- tend the boundaries of the Golden Gate follows: ized funding source to make payments under National Recreation Area, GGNRA, by S. 136 this section only if the funding available to acquiring critical natural landscapes Be it enacted by the Senate and House of Rep- Yosemite National Park from such source and scenic vistas. resentatives of the United States of America in (after subtracting any payments to the This bill meets several distinct needs Congress assembled, school districts authorized under this sec- in California and national needs of all SECTION 1. TABLE OF CONTENTS. tion) is greater than or equal to the amount National Park System visitors by add- The table of contents of this Act is as fol- made available to the park for the prior fis- ing 4,600 acres of pristine natural land lows: cal year, or in fiscal year 2005, whichever is Sec. 1. Table of contents. greater. to the boundary of the Golden Gate (B) It is the sense of Congress that any Recreation Area. It will protect four TITLE I—YOSEMITE NATIONAL PARK payments made under this section should major watersheds, preserve the home of AUTHORIZED PAYMENTS not result in a reduction of funds to Yosem- numerous threatened, rare and endan- Sec. 102. Payments for educational services. ite National Park from any specific funding gered plant and animal species in the Sec. 103. Authorization for park facilities to source, and that with respect to appropriated region, allow potential access to valu- be located outside the bound- funds, funding levels should reflect annual able future trail links to contiguous aries of Yosemite National increases in the park’s operating base funds Park. State and county parks, and establish that are generally made to units of the Na- tional Park System. a dramatic and logical southern en- TITLE II—RANCHO CORRAL DE TIERRA GOLDEN GATE NATIONAL RECREATION SEC. 102. AUTHORIZATION FOR PARK FACILITIES trance to the park. AREA BOUNDARY ADJUSTMENT. TO BE LOCATED OUTSIDE THE A key component of this legislation Sec. 201. Short title. BOUNDARIES OF YOSEMITE NA- TIONAL PARK. is its three-way, local-state-federal Sec. 202. Golden Gate National Recreation (a) FUNDING AUTHORITY FOR TRANSPOR- partnership. Half of the total purchase Area, California. price of these lands has already been TATION SYSTEMS AND EXTERNAL FACILITIES.— TITLE I—YOSEMITE NATIONAL PARK donated by local and State sources. Ad- Section 814(c) of the Omnibus Parks and AUTHORIZED PAYMENTS Public Lands Management Act of 1996 (16 ditionally, this legislation specifically SEC. 101. PAYMENTS FOR EDUCATIONAL SERV- U.S.C. 346e) is amended— provides that all land transactions in- ICES. (1) in the heading by inserting ‘‘AND YO- volve a willing seller and willing buyer. (a) IN GENERAL.—(1) For fiscal years 2006 SEMITE NATIONAL PARK’’ after ‘‘ZION NA- Furthermore, this bill has the strong through 2009, the Secretary of the Interior TIONAL PARK’’; support of local community groups, the may provide funds to the Bass Lake Joint (2) in the first sentence—

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00244 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S351 (A) by inserting ‘‘and Yosemite National tration to establish a vocational and requirements for contracts above $5 Park’’ after ‘‘Zion National Park’’; and technical entrepreneurship develop- million and $7 million. The bill also (B) by inserting ‘‘for transportation sys- ment program; to the Committee on eliminates the use of the term ‘‘con- tems or’’ after ‘‘appropriated funds’’; and Small Business and Entrepreneurship. tract bundling’’ and expands the defini- (3) in the second sentence by striking ‘‘fa- Mr. KERRY. Mr. President, as Rank- cilities’’ and inserting ‘‘systems or facili- tion of ‘‘contract consolidation,’’ clos- ties’’. ing Member of the Small Business and ing a loophole that has been widely (b) CLARIFYING AMENDMENT FOR TRANSPOR- Entrepreneurship Committee, today I used to the detriment of many small TATION FEE AUTHORITY.—Section 501 of the am introducing a package of bills that businesses. National Parks Omnibus Management Act of will help small business owners with In addition to increasing opportuni- 1998 (16 U.S.C. 5981) is amended in the first access to loans, business counseling ties for prime contracts by eliminating sentence by striking ‘‘service contract’’ and and Federal procurement opportuni- unnecessary contract consolidation, inserting ‘‘service contract, cooperative ties. Each of the bills was previously this bill addresses another serious agreement, or other contractual arrange- introduced on its own or as part of the ment’’. problem: the dishonest treatment of Committee’s extensive Small Business small business subcontractors by large TITLE II—RANCHO CORRAL DE TIERRA Administration reauthorization pro- GOLDEN GATE NATIONAL RECREATION business prime contractors. Small busi- AREA BOUNDARY ADJUSTMENT posal that passed the Senate unani- nesses have been severely hamstrung mously last Congress. These are provi- SEC. 201. SHORT TITLE. by the dishonest practices of some This title may be cited as the ‘‘Rancho sions that are necessary for enabling large business prime contracts that Corral de Tierra Golden Gate National our nation’s small businesses to con- delay paying their subcontractors, Recreation Area Boundary Adjustment Act’’. tinue to have the resources and tools falsely report their subcontracting SEC. 202. GOLDEN GATE NATIONAL RECREATION they need to compete with larger com- plans and use ‘‘bait and switch’’ tac- AREA, CALIFORNIA. panies. They will help America’s bud- tics. (a) Section 2(a) of Public Law 92–589 (16 ding entrepreneurs continue to seek This bill holds prime contractors re- U.S.C. 460bb–1(a)) is amended— out business opportunities and con- sponsible for the validity of subcon- (1) by striking ‘‘The recreation area shall tinue to start businesses. Enactment of tracting data, requiring the CEO to comprise’’ and inserting the following: this assistance will show that the Fed- certify to the accuracy of the subcon- ‘‘(1) INITIAL LANDS.—The recreation area shall comprise’’; and eral government is not there to make tracting report under penalty of law. It (2) by striking ‘‘The following additional the road to success more difficult for also makes the penalties for falsifying lands are also’’ and all that follows through small businesses, but to help them data included in subcontracting reports the period at the end of the subsection and where the private sector will not. match the current $500,000 penalty for inserting the following new paragraphs: Mr. President, the first bill of this businesses that falsify their status as a ‘‘(2) ADDITIONAL LANDS.—In addition to the package is the Small Business Federal small and disadvantaged business. lands described in paragraph (1), the recre- Contractor Safeguard Act. It includes Under this bill, if one intentionally fal- ation area shall include the following: essential contractor protections that sifies data as a part of a subcontracting ‘‘(A) The parcels numbered by the Assessor of Marin County, California, 119–040–04, 119– were a part of the Small Business Ad- report to a federal Agency, he is de- 040–05, 119–040–18, 166–202–03, 166–010–06, 166– ministration reauthorization package frauding the United States government 010–07, 166–010–24, 166–010–25, 119–240–19, 166– that passed the Senate unanimously and will be punished to the full extent 010–10, 166–010–22, 119–240–03, 119–240–51, 119– last Congress but was stalled during of the law. 240–52, 119–240–54, 166–010–12, 166–010–13, and negotiations in the House of Represent- Finally, the bill requires contracting 119–235–10. atives. These much-needed protections officers to maintain a database of con- ‘‘(B) Lands and waters in San Mateo Coun- will help level the playing field for tract performance that is made avail- ty generally depicted on the map entitled small firms and create a procurement able to the small business subcon- ‘Sweeney Ridge Addition, Golden Gate Na- tional Recreation Area’, numbered NRA GG– atmosphere that fosters competition, tractor upon completion of the con- 80,000–A, and dated May 1980. fair access and equal opportunity for tract. This report can then be used as a ‘‘(C) Lands acquired under the Golden Gate smaller entities. record of past performance, building a National Recreation Area Addition Act of With Federal agencies awarding larg- history that will help successful small 1992 (16 U.S.C. 460bb–1 note; Public Law 102– er, more complex and more costly con- firms bid on future Federal prime con- 299). tracts, and with less staff at the Small tracts or subcontracts. Each con- ‘‘(D) Lands generally depicted on the map Business Administration and within tracting officer will be empowered to entitled ‘Additions to Golden Gate National Agency contracting offices performing withhold a portion of the payment to Recreation Area’, numbered NPS–80–076, and oversight, this nation’s small busi- dated July 2000/PWR–PLRPC. the prime contractor until he also re- ‘‘(E) Lands generally depicted on the map nesses and its taxpayers are the ones ceives the completed and accurate per- entitled ‘Rancho Corral de Tierra Additions shouldering the burden when small formance report. Any material breach to the Golden Gate National Recreation business goals continue to be unmet. In of contract that is found will be imme- Area’, numbered NPS–80,079E, and dated addition to helping small businesses diately reported to the Inspector Gen- March 2004. obtain access to procurement opportu- eral of that Agency for a complete in- ‘‘(3) ACQUISITION LIMITATION.—The Sec- nities, these goals are meant to help vestigation. retary may acquire land described in para- the government benefit from the cost- The second bill of this small business graph (2)(E) only from a willing seller.’’. savings and innovations small business legislative package is the SBA Micro- By Mr. KERRY: contractors can often provide. enterprise Improvements Act. It was S. 137. A bill to modify the contract Significant steps were made during also included as part of the Small Busi- consolidation requirements in the the last Congress to address the chal- ness Administration reauthorization Small Business Act, and for other pur- lenges of contract bundling; however, package and passed by the Senate poses; to the Committee on Small Busi- it is my belief that passing and imple- unanimously last Congress. I am re- ness and Entrepreneurship. menting binding statutory require- introducing these provisions because ments is the only long-term solution to they are vital to the microenterprise By Mr. KERRY (for himself and the on-going problem of contract bun- programs administered by the SBA: the Mr. BINGAMAN): dling, also called contract consolida- Microloan Program and the Program S. 138. A bill to make improvements tion. The first section of the bill cre- for Investment in Microentrepreneurs to the microenterprise programs ad- ates a two-tiered approach to pre- (PRIME). ministered by the Small Business Ad- venting unnecessary contract consoli- As I have stated on numerous occa- ministration; to the Committee on dation. Civilian agencies will be re- sions, I disagree with the Administra- Small Business and Entrepreneurship. quired to meet specific standards if tion’s proposals to cut back funding for they attempt to consolidate contracts microloans and training assistance in- By Mr. KERRY: above $2 million and additional re- tended to encourage entrepreneurship S. 139. A bill to amend the Small quirements for those contracts above and foster America’s smallest small Business Act to direct the Adminis- $5 million. The Department of Defense businesses. And I wholeheartedly dis- trator of the Small Business Adminis- is required to meet two types of similar agree with the Administration’s ill-

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00245 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S352 CONGRESSIONAL RECORD — SENATE January 24, 2005 founded argument that these borrowers microlenders to structure loans that depth technical assistance and coun- are being, or will be, served through meet the needs of certain small enter- seling to disadvantaged Native Amer- the SBA’s 7(a) loan guarantee program. prises. This will benefit small busi- ican small business owners. The ration- SBA’s loan programs are not one-size nesses, the lenders, and the SBA be- ale for amending the PRIME Act, rath- fits all. The small borrower in the cause it will eliminate repeated paper- er than creating a separate program, is Microloan program is different, and work and unnecessary administrative that PRIME is currently operational therefore has different needs, than the burdens. It will help small businesses, and simply needs additional targeted small business borrower being served such as carpenters, who need revolving efforts and funding so it can better ad- through the 7(a) loan program. Both loans to finance the jobs as they come dress the needs of the Native American lending vehicles are important, but in, rather than taking multiple little, entrepreneurial community. The they are different, and one is not a sub- fixed-term loans. Second, this bill also Bingaman-Kerry approach uses an ex- stitute for the other. contains a change to the Microlenders isting program structure to help find a Who are these borrowers being served eligibility. Rather than tying eligi- solution to the long-term economic through the microloan program? Thir- bility to the expertise of the entity, handicap existing in Native American ty percent are African American; 11 this bill makes it possible for new enti- communities nationwide. There are a percent are Hispanic; 37 percent are ties to qualify as the SBA microlending number of microenterprise organiza- women; and, anywhere from 30 percent intermediaries if they have staffs who tions in states across the country that to 40 percent go to small businesses in are experienced in this unique or spe- are willing and prepared to take on the rural areas. Because of their size, the cialized lending and technical assist- additional challenge of assisting dis- size of the loan they need and their rel- ance. This bill also adjusts, reflecting advantaged Native American entre- ative inexperience, small businesses changes in the market, the average preneurs, and there are a number of borrowers are turned away by banks, smaller size of microloans from $7,500 Native American communities that are and yet the Administration proposed to $10,000, to make it consistent with eager to explore a different path to eco- cutting the Microloan program by 36 similar changes enacted in December nomic development. However, there are percent in its fiscal year 2004 budget, 2000. This is important because currently a limited amount of funds to and cut all funding in its fiscal year microloan intermediaries that have a allow that to happen. Again, I com- 2005 budget. The SBA needs to fully microloan portfolio with an average mend Senator BINGAMAN for his contin- fund these programs and put more re- loan size of not more than $10,000 will ued attention to these needs, for his sources into the office that manages now be eligible to receive an interest continued support of small business the program. Four people are not rate lower than the normal rate ex- legislation to address them, and for his enough to manage 1,400 loans and 180 tended by the SBA to intermediaries. foresight and vision for Native Ameri- grants. To make matters worse, the This bill also changes, from 25 percent cans in New Mexico and across the SBA’s long-time manager of micro-en- to 30 percent, the amount of technical country. The Native American commu- nities of our nation will be better off terprise programs, Jody Raskind, is assistance (TA) funds an intermediary with the assistance that this provision leaving the Agency. All those who sup- can contract with an outside expert makes possible. port the good work of fostering SBA’s and the amount of grants a lender can Again, it is time to move forward. Microloan program are sorry to see her use to counsel prospective borrowers. Out of 66 pages of Small Business Ad- go, not only because of her dedication In addition, the legislation requires the ministration reauthorizations and im- and hard work, but also because they SBA to report annually on the require- provements that were slipped into the are concerned that the Administration ment that states that Agency must Omnibus Appropriations bill that will never really fill the job, letting contract out 7 percent of its loan dol- passed at the end of the 108th Congress, the programs languish. I urge the Ad- lars for intermediary training. these non-controversial provisions Last, the SBA Microenterprise Im- ministration to move quickly to fill were included. They should have been. that position, just as the private sector provements Act, like S.1375, requires The third part of the package that would, by working with the Microloan the SBA to develop an improved sub- I’m introducing today is a reintroduc- community to identify someone who is sidy rate model to determine the cost tion of the Vocational and Technical competent, resourceful and dedicated of microloans. The one the Agency has Entrepreneurship Development Act. to monitoring integrity of these pro- used since the program’s inception does Last Congress, I introduced this impor- grams and fostering their success. not reflect the performance of the pro- tant piece of legislation as a com- In addition, we need to finally enact gram. For example, in Fiscal Year 2003, panion to H.R. 1387, which bears the some changes to the Microloan pro- the administration’s budget doubled same name and was introduced in the gram that have passed the Senate sev- the subsidy rate (which is the govern- House, in the 107th and 108th Con- eral times over the last four years but ment’s cost of the program) from 6.78 gresses, by Congressman ROBERT have yet to pass the full Congress be- percent to 13.05 percent, even though BRADY of Pennsylvania. cause of unrelated political fights. I the program had not experienced any Let me begin by reminding my col- urge my colleagues to let us move for- loss of federal funds since the first loan leagues that the Small Business Ad- ward with making these provisions was made in 1992. This broken method ministration’s Office of Advocacy law, once and for all. The first part of of calculating the cost of these loans is states that only half of all small busi- the SBA Microenterprise Improve- a waste of taxpayer money because nesses survive past four years and that ments Act includes many of the provi- Congress has to appropriate unneces- management and education remain two sions passed as part of S. 174, a bill sary funds to run the program. Now is of the most important ingredients to which Senator SNOWE and I introduced the time to fix it. small business success. We often think in 2001 and the Committee and the full The second part of the SBA Micro- that small businesses only need money Senate voted to pass by unanimous enterprise Improvements Act also to succeed, but while adequate financ- consent in 2002. As I mentioned earlier, comes from S.1375, but was not in- ing is vital, so too is careful planning these provisions were also included as cluded in the small business reauthor- and competent management. Often part of S.1375, the SBA reauthorization ization bill that passed Congress last Americans who work in the trade sec- bill that passed the Senate unani- session. It begins by reauthorizing the tor—construction, plumbing, electrical mously in 2003. The updates and PRIME program through 2007 and work, etc.—enter these professions changes to the Microloan program in- transfers its legislative language from with the goal of one day starting their cluded in this bill will improve the pro- the Riegle Community Development own business; however many of these gram in several ways. and Regulatory Improvement Act of aspiring entrepreneurs who participate First, it will allow intermediaries to 1994 to section 37 of the Small Business in career training or vocational train- make revolving-term loans or longer Act. Additionally, it includes a provi- ing in certain trades, unfortunately, fixed term loans to small businesses. sion that Senator BINGAMAN and I fail to obtain the necessary education Currently, intermediaries may only worked closely to develop that will ex- and ‘‘back room’’ management skills to make ‘‘short-term’’ loans with fixed pand PRIME with a separate $2 million grow and develop their fledgling busi- terms, which restrict the ability of authorization to provide direct, in- ness. This initiative would develop a

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00246 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S353 program that allows workers within Mr. President, I urge all of my col- (2) by amending paragraph (3) to read as the trades industry to move toward leagues to cosponsor and support these follows: starting a new business by giving them three bills. ‘‘(3) LIMITATION ON USE OF ACQUISITION the entrepreneurial skills to success- I ask unanimous consent that the STRATEGIES INVOLVING CONSOLIDATION.— text of the bills be printed in the ‘‘(A) CERTAIN DEFENSE CONTRACT REQUIRE- fully manage a small business. Many MENTS.—An official of a military depart- small businesses fail not because they RECORD. ment, defense agency, or Department of De- don’t know the industry or make low- S. 137 fense Field Activity shall not execute an ac- quality products or have poor service, Be it enacted by the Senate and House of Rep- quisition strategy that includes a consolida- but because they don’t know the ins resentatives of the United States of America in tion of contract requirements of the military and outs of running a successful busi- Congress assembled, department, agency, or activity with a total ness. SECTION 1. SHORT TITLE. value in excess of $5,000,000, unless the senior This Act may be cited as the ‘‘Small Busi- procurement executive first— The purpose of the Vocational and ness Federal Contractor Safeguard Act of ‘‘(i) conducts market research; Technical Entrepreneurship Develop- 2005’’. ‘‘(ii) identifies any alternative contracting ment Act is to assist in the develop- SEC. 2. CONTRACT CONSOLIDATION. approaches that would involve a lesser de- ment of curricula that will encourage (a) DEFINITIONS.—Section 3(o) of the Small gree of consolidation of contract require- the successful growth of small busi- Business Act (15 U.S.C. 632(o)) is amended to ments; and nesses. This legislation passed the read as follows: ‘‘(iii) determines that the consolidation is House in each of the last Congresses, ‘‘(o) DEFINITIONS RELATING TO CONSOLIDA- necessary and justified. TION OF CONTRACT REQUIREMENTS.—For pur- but was not taken up by the full Sen- ‘‘(B) CERTAIN CIVILIAN AGENCY CONTRACT poses of this Act— REQUIREMENTS.—The head of a Federal agen- ate. I hope that the committee and full ‘‘(1) the terms ‘consolidation of contract cy not described in subparagraph (A) that Senate will act quickly on it now. requirements’ and ‘consolidation’, with re- has contracting authority shall not execute The bill, in a business-education spect to contract requirements of a military an acquisition strategy that includes a con- partnership, establishes a ‘‘vocational department, Defense Agency, Department of solidation of contract requirements of the entrepreneurship development dem- Defense Field Activity, or any other Federal agency with a total value in excess of onstration program,’’ under which the department or agency having contracting $2,000,000, unless the senior procurement ex- SBA would provide grants, through the authority mean a use of a solicitation to ob- ecutive of the agency first— tain offers for a single contract or a multiple ‘‘(i) conducts market research; Small Business Development Center award contract to satisfy 2 or more require- ‘‘(ii) identifies any alternative contracting network, to provide technical assist- ments of that department, agency, or activ- approaches that would involve a lesser de- ance to high school and technical ca- ity for goods or services that— gree of consolidation of contract require- reer institutes, vo-tech schools, to pro- ‘‘(A) have previously been provided to or ments; and mote small business ownership in their performed for that department, agency, or ‘‘(iii) determines that the consolidation is curriculum. activity under 2 or more separate contracts necessary and justified. The SBDC program is designed to de- that are smaller in cost than the total cost ‘‘(C) ADDITIONAL REQUIREMENTS FOR HIGHER liver such up-to-date counseling, train- of the contract for which the offers are solic- VALUE CONSOLIDATED CONTRACTS.—In addi- ited; or tion to meeting the requirements under sub- ing and technical assistance in all as- ‘‘(B) are of a type capable of being provided paragraph (A) or (B), a procurement strategy pects of small business management or performed by a small business concern for by a civilian agency that includes a consoli- and is the ideal vehicle to provide such that department, agency, or activity under 2 dated contract valued at more than a program. Each grant awarded under or more separate contracts that are smaller $5,000,000, or by a defense agency that in- this program will be worth at least in cost than the total cost of the contract for cludes a consolidated contract valued at $200,000—which, in today’s environment which the offers are solicited; more than $7,000,000 shall include— where vo-tech programs get short- ‘‘(2) the term ‘multiple award contract’ ‘‘(i) an assessment of the specific impedi- means— changed in government education ments to participation by small business ‘‘(A) a contract that is entered into by the concerns as prime contractors that will re- budgets, can do a great deal to help re- Administrator of General Services under the sult from the consolidation; build a worker-strapped trades indus- multiple award schedule program referred to ‘‘(ii) the identification of the alternative try. in section 2302(2)(C) of title 10, United States strategies that would reduce or minimize the There has been some concern that Code; scope of the consolidation and the rationale this legislation will duplicate programs ‘‘(B) a multiple award task order contract for not choosing those alternatives; such as those at the Department of or delivery order contract that is entered ‘‘(iii) actions designed to maximize small Education’s Office of Vocational and into under the authority of sections 2304a business participation as prime contractors, Adult Education, OVAE, which does through 2304d of title 10, United States Code, including provisions that encourage small or sections 303H through 303K of the Federal business teaming for the consolidated re- provide valuable vocational education. Property and Administrative Services Act of quirement; and The OVAE, and other such government 1949 (41 U.S.C. 253h through 253k); and ‘‘(iv) actions designed to maximize small programs, however, focus on helping ‘‘(C) any other indeterminate delivery, in- business participation as subcontractors (in- workers gain new and updated skills so determinate quantity contract that is en- cluding suppliers) at any tier under the con- that they may find employment. In tered into by the head of a Federal agency tract or contracts that may be awarded to contrast, this legislation is targeted with 2 or more sources pursuant to the same meet the requirements. toward turning workers, not into bet- solicitation; and ‘‘(D) NECESSARY AND JUSTIFIED.—A senior procurement executive may determine that ter employees, but into potential em- ‘‘(3) the term ‘senior procurement execu- tive’ means— an acquisition strategy involving a consoli- ployers. Traditional vocational edu- ‘‘(A) with respect to a military depart- dation of contract requirements is necessary cation programs do not provide entre- ment, the official designated under section and justified for purposes of subparagraph preneurial training. This is a funda- 16(3) of the Office of Federal Procurement (A), (B), or (C), if the benefits of the acquisi- mental difference between this legisla- Policy Act (41 U.S.C. 414(3)) as the senior tion strategy substantially exceed the bene- tion’s objective and that of the tradi- procurement executive for the military de- fits of each of the possible alternative con- tional vocation education provided by partment; tracting approaches identified under clause the Department of Education. Giving ‘‘(B) with respect to a Defense Agency or a (ii) of any of those subparagraphs, as applica- ble. Savings in administrative or personnel our trades industry professionals the Department of Defense Field Activity, the official so designated for the Department of costs alone shall not constitute, for such skills to be successful business owners Defense; and purpose, a sufficient justification for a con- creates better employers and better, ‘‘(C) with respect to a Federal department solidation of contract requirements in a pro- long-lasting businesses. This, in turn, or agency other than those referred to in curement, unless the total amount of the will go a long way toward creating ad- subparagraphs (A) and (B), the official so cost savings is expected to be substantial in ditional trade jobs across the country. designated by that department or agency.’’. relation to the total cost of the procure- I again want to commend Represent- (b) PROCUREMENT STRATEGIES.—Section ment. ative BRADY for his years of hard work 15(e) of the Small Business Act (15 U.S.C. ‘‘(E) BENEFITS.—Benefits considered for on behalf of entrepreneurs not just 644(e)) is amended— purposes of this paragraph may include cost (1) in paragraph (2)— and, regardless of whether quantifiable in from his home State but on behalf of (A) by striking ‘‘.— dollar amounts— every trades industry worker who has ‘‘(A) IN GENERAL ’’; and ‘‘(i) quality; ever thought of becoming his or her (B) by striking subparagraphs (B) and (C); ‘‘(ii) acquisition cycle; own boss by starting a business. and ‘‘(iii) terms and conditions; and

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00247 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S354 CONGRESSIONAL RECORD — SENATE January 24, 2005 ‘‘(iv) any other benefit directly related to (1) shall communicate to their subordi- (1) in subparagraph (E), by striking ‘‘and’’ national security or homeland defense.’’. nates the importance of achieving small at the end; (c) ADDITIONAL TO TECHNICAL ADVISERS.— business goals; and (2) in subparagraph (F), by striking the pe- Section 15(k) of the Small Business Act (15 (2) shall have as an annual performance riod at the end and inserting ‘‘; and’’; and U.S.C. 644(k)) is amended— evaluation factor, if appropriate, the success (3) by adding at the end the following: (1) in paragraph (5), by striking ‘‘bundled of that procurement employee in small busi- ‘‘(G) certification that the offeror or bidder contract’’ and inserting ‘‘consolidated con- ness utilization, in accordance with the goals will acquire articles, equipment, supplies, tract’’; and established under this section. services, or materials, or obtain the perform- (2) in paragraph (8), by striking ‘‘represent- (b) DEFINITION.—As used in this section, ance of construction work from small busi- ative—’’ and inserting ‘‘representative at the term ‘‘procurement employee’’ means a ness concerns in the amount and quality each major procurement center under sub- senior procurement executive, senior pro- used in preparing the bid or proposal, unless section (l)(1)—’’. gram manager, or small and disadvantaged such small business concerns are no longer (d) PROCUREMENT CENTER REPRESENTA- business utilization manager of a Federal in business or can no longer meet the qual- TIVES.—Section 15(l) of the Small Business agency having contracting authority. ity, quantity, or delivery date.’’. Act (15 U.S.C. 644(l)) is amended— SEC. 4. SMALL BUSINESS PARTICIPATION IN (b) PENALTIES FOR FALSE CERTIFICATIONS.— (1) by redesignating paragraphs (2) through PRIME CONTRACTING. Section 16(f) of the Small Business Act (15 (7) as paragraphs (3) through (8), respec- (a) RESERVED CONTRACTS.—Section 15(j) of U.S.C. 645(f)) is amended by striking ‘‘of this tively; the Small Business Act (15 U.S.C. 644(j)) is Act’’ and inserting ‘‘or the reporting require- (2) by striking ‘‘(l)(1)’’ and inserting ‘‘(2)’’; amended by adding at the end the following: ments of section 8(d)(11)’’. (3) by inserting before paragraph (2), as re- ‘‘(4) Any adjustment to the simplified ac- SEC. 6. EVALUATING SUBCONTRACT PARTICIPA- designated, the following: quisition threshold (as defined in section TION IN AWARDING CONTRACTS. ‘‘(l)(1) The Administration shall assign not 4(11) of the Office of Federal Procurement (a) SIGNIFICANT FACTORS.—Section fewer than 1 procurement center representa- Policy Act (41 U.S.C. 403(11))), shall be imme- 8(d)(4)(G) of the Small Business Act (15 tive at each major procurement center, in diately matched by an identical adjustment U.S.C. 637(d)(4)(G)) is amended by striking ‘‘a addition to not fewer than 1 for each State.’’; to the small business reserve for purposes of bundled’’ and inserting ‘‘any’’. (4) in paragraph (2), as redesignated, by this subsection.’’. (b) EVALUATION REPORTS.—Section 8(d)(10) striking ‘‘to the representative referred to in (b) PARTICIPATION IN MULTIPLE AWARD CON- of the Small Business Act (15 U.S.C. subsection (k)(6)’’ and inserting ‘‘to the tra- TRACTS.—Section 15(j) of the Small Business 637(d)(10)) is amended— ditional procurement center representative Act (15 U.S.C. 644(j)) is amended— (1) by striking ‘‘is authorized to’’ and in- and the commercial market representative, (1) in paragraph (2), by striking ‘‘(2) In car- serting ‘‘shall’’; with each such position filled by a different rying out paragraph (1)’’ and inserting ‘‘(3) (2) in subparagraph (B), by striking ‘‘and’’ individual, and each such representative hav- In carrying out paragraphs (1) and (2)’’; at the end; ing separate and distinct duties and respon- (2) in paragraph (3), by striking ‘‘(3) Noth- (3) in subparagraph (C), by striking the pe- sibilities.’’; and ing in paragraph (1)’’ and inserting ‘‘(4) riod at the end and inserting ‘‘; and’’; and (5) by striking ‘‘paragraph (2)’’ each place Nothing in this subsection’’; and (4) by adding at the end the following: that term appears and inserting ‘‘paragraph (3) by inserting after paragraph (1) the fol- ‘‘(D) report the results of each evaluation (3)’’. lowing: under subparagraph (C) to the appropriate (e) REPORT REQUIREMENTS.—Section ‘‘(2)(A) In the case of orders under multiple contracting officers.’’. 15(p)(4)(B) of the Small Business Act (15 award contracts, including Federal Supply (c) CENTRALIZED DATABASE; PAYMENTS U.S.C. 644(p)(4)(B)) is amended— Schedule contracts and multi-agency con- PENDING REPORTS.—Section 8(d) of the Small (1) in clause (i), by striking ‘‘and’’ at the tracts, that are subject to the small business Business Act (15 U.S.C. 637(d)) is amended— end; reserve, contracting officers shall consider (1) by redesignating paragraph (11) as para- (2) in clause (ii), by striking the period at not fewer than 2 small business concerns if graph (14); and the end and inserting the following: ‘‘; and’’; such small business concerns can offer the (2) by inserting after paragraph (10) the fol- and items sought by the contracting officer on lowing: (3) by adding at the end the following: competitive terms, with respect to price, ‘‘(11) CERTIFICATION.—A report submitted ‘‘(iii) a description of best practices for quality, and delivery schedule, with the by the prime contractor pursuant to para- maximizing small business prime and sub- goods or services available in the market. graph (6)(E) to determine the attainment of contracting opportunities.’’. ‘‘(B) If only 1 small business concern can a subcontract utilization goal under any sub- (f) CONFORMING AMENDMENTS.—Section satisfy the requirement, the contracting offi- contracting plan entered into with a Federal 15(p) of the Small Business Act (15 U.S.C. cer shall include such small business concern agency under this subsection shall contain 644(p)) is amended— in their evaluation.’’. the name and signature of the president or (1) in the subsection heading, by striking (c) REPORT REQUIREMENT.— chief executive officer of the contractor, cer- ‘‘BUNDLED CONTRACTS’’ and inserting ‘‘CON- (1) IN GENERAL.—Not less than once every tifying that the subcontracting data pro- SOLIDATED CONTRACTS’’; 180 days, the Comptroller General of the vided in the report are accurate and com- (2) in the heading to paragraph (1), by United States shall submit a report on the plete. striking ‘‘BUNDLED CONTRACT’’ and inserting level of participation in multiple award con- ‘‘(12) CENTRALIZED DATABASE.—The results ‘‘CONSOLIDATED CONTRACT’’; tracts, including the Federal Supply Sched- of an evaluation under paragraph (10)(C) (3) in the heading to paragraph (4), by ule to— shall be included in a national centralized striking ‘‘CONTRACT BUNDLING’’ and inserting (A) the Small Business Administration; governmentwide database. ‘‘CONTRACT CONSOLIDATION’’; (B) the Committee on Small Business and ‘‘(13) PAYMENTS PENDING REPORTS.—Each (4) by striking ‘‘bundled contracts’’ each Entrepreneurship of the Senate; and Federal agency having contracting authority place that term appears and inserting ‘‘con- (C) the Committee on Small Business of shall ensure that the terms of each contract solidated contracts’’; the House of Representatives. for goods and services includes a provision (5) by striking ‘‘bundled contract’’ each (2) CONTENTS.—Each report submitted allowing the contracting officer of an agency place that term appears and inserting ‘‘con- under paragraph (1) shall contain, for the 6- to withhold an appropriate amount of pay- solidated contract’’; month reporting period— ment with respect to a contract (depending (6) by striking ‘‘bundling of contract re- (A) the total number of multiple award on the size of the contract) until the date of quirements’’ each place that term appears contracts; receipt of complete, accurate, and timely and inserting ‘‘consolidation of contract re- (B) the total number of small business con- subcontracting reports in accordance with quirements’’; cerns that received multiple award con- paragraph (11).’’. (7) in paragraph (4)(B)(ii), by striking ‘‘pre- tracts; (d) REFERRAL OF MATERIAL BREACH TO IN- viously bundled’’ and inserting ‘‘previously (C) the total number of orders; SPECTORS GENERAL.—Section 8(d)(8) of the consolidated’’; (D) the total value of orders; Small Business Act (15 U.S.C. 637(d)(8)) is (8) in paragraph (4)(B)(ii)(I), by striking (E) the number of orders received by small amended by adding at the end the following: ‘‘were bundled’’ and inserting ‘‘were consoli- business concerns; ‘‘A material breach described in this para- dated’’; (F) the value of orders received by small graph shall be referred for investigation to (9) in paragraph (4)(B)(ii)(II)(bb), by strik- business concerns; the Inspector General (or the equivalent) of ing ‘‘bundling the contract requirements’’ (G) the number of small business concerns the affected agency.’’. and inserting ‘‘the consolidation of contract that received orders; and SEC. 7. BUSINESSLINC REPORT TO CONGRESS. requirements’’; and (H) such other information that the Comp- Section 8(n) of the Small Business Act (15 (10) in paragraph (4)(B)(ii)(II)(cc), by strik- troller General considers relevant. U.S.C. 637(n)) is amended— ing ‘‘bundled status’’ and inserting ‘‘consoli- SEC. 5. SMALL BUSINESS PARTICIPATION IN SUB- (1) by redesignating paragraph (3) as para- dated status’’. CONTRACTING. graph (4); and SEC. 3. AGENCY ACCOUNTABILITY. (a) CERTIFICATIONS REQUIRED.—Section (2) by adding after paragraph (2) the fol- (a) IN GENERAL.—Each procurement em- 8(d)(6) of the Small Business Act (15 U.S.C. lowing: ployee— 637(d)(6)) is amended— ‘‘(3) ANNUAL REPORT.—

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‘‘(A) IN GENERAL.—The Associate Adminis- ‘‘(14) IMPROVED SUBSIDY MODEL.—The Ad- enterprise development organization or pro- trator of Business Development of the Ad- ministrator shall develop a subsidy model for gram’ means a nonprofit entity, or a pro- ministration shall collect data on the the microloan program under this sub- gram administered by such an entity, includ- BusinessLINC program and submit an annual section, to be used in the fiscal year 2006 ing community development corporations or report by April 30 of each year on the effec- budget, that is more accurate than the sub- other nonprofit development organizations tiveness of the program to the Committee on sidy model in effect on the day before the and social service organizations, that pro- Small Business and Entrepreneurship of the date of enactment of this paragraph.’’. vides services to disadvantaged entre- Senate and the Committee on Small Busi- (g) INCREASED FLEXIBILITY FOR PROVIDING preneurs. ness of the House of Representatives. TECHNICAL ASSISTANCE TO POTENTIAL BOR- ‘‘(13) TRAINING AND TECHNICAL ASSIST- ‘‘(B) CONTENTS.—The report submitted ROWERS.—Section 7(m)(4)(E)(i) of the Small ANCE.—The term ‘training and technical as- under subparagraph (A) shall include— Business Act (15 U.S.C. 636(m)(4)(E)(i)) is sistance’ means services and support pro- ‘‘(i) the number of programs administered amended by striking ‘‘25 percent’’ and insert- vided to disadvantaged entrepreneurs, such in each State; ing ‘‘30 percent’’. as assistance for the purpose of enhancing ‘‘(ii) the corresponding grant awards and SEC. 3. PRIME REAUTHORIZATION AND TRANS- business planning, marketing, management, the date of each award; FER TO THE SMALL BUSINESS ACT. financial management skills, and assistance ‘‘(iii) the dollar amount of the contracts in (a) PROGRAM REAUTHORIZATION.—Subtitle C for the purpose of accessing financial serv- effect in each State as a result of the of title I of the Riegle Community Develop- ices. BusinessLINC program; and ment and Regulatory Improvement Act of ‘‘(14) VERY LOW-INCOME PERSON.—The term ‘‘(iv) the number of teaming arrangements 1994 (15 U.S.C. 6901 note) is amended to read ‘very low-income person’ means having an or partnerships created as a result of the as follows: income, adjusted for family size, of not more BusinessLINC program.’’. ‘‘SEC. 37. PROGRAM FOR INVESTMENT IN MICRO- than 150 percent of the poverty line (as de- ENTREPRENEURS. fined in section 673(2) of the Community S. 138 ‘‘(a) DEFINITIONS.—For purposes of this sec- Services Block Grant Act (42 U.S.C. 9902(2)), Be it enacted by the Senate and House of Rep- tion, the following definitions shall apply: including any revision required by that sec- resentatives of the United States of America in ‘‘(1) ADMINISTRATION.—The term ‘Adminis- tion). Congress assembled, tration’ means the Small Business Adminis- ‘‘(b) ESTABLISHMENT OF PROGRAM.—The Ad- SECTION 1. SHORT TITLE. tration. ministrator shall establish a microenterprise This Act may be cited as the ‘‘SBA Micro- ‘‘(2) ADMINISTRATOR.—The term ‘Adminis- technical assistance and capacity building enterprise Improvements Act’’. trator’ means the Administrator of the grant program to provide assistance from SEC. 2. MICROLOAN PROGRAM IMPROVEMENTS. Small Business Administration. the Administration in the form of grants to (a) INTERMEDIARY ELIGIBILITY REQUIRE- ‘‘(3) CAPACITY BUILDING SERVICES.—The qualified organizations in accordance with MENTS.—Section 7(m)(2) of the Small Busi- term ‘capacity building services’ means serv- this section. ness Act (15 U.S.C. 636(m)(2)) is amended— ices provided to an organization that is, or ‘‘(c) USES OF ASSISTANCE.—A qualified or- (1) in subparagraph (A), by striking ‘‘in that is in the process of becoming, a micro- ganization shall use grants made under this paragraph (10); and’’ and inserting ‘‘of the enterprise development organization or pro- section— term ‘intermediary’ under paragraph (11);’’; gram, for the purpose of enhancing its abil- ‘‘(1) to provide training and technical as- and ity to provide training and services to dis- sistance to disadvantaged entrepreneurs; (2) in subparagraph (B)— advantaged entrepreneurs. ‘‘(2) to provide training and capacity build- (A) by striking ‘‘(B) has at least’’ and in- ‘‘(4) COLLABORATIVE.—The term ‘collabo- ing services to microenterprise development serting the following: rative’ means 2 or more nonprofit entities organizations and programs and groups of ‘‘(B) has— that agree to act jointly as a qualified orga- such organizations to assist such organiza- ‘‘(i) at least’’; and nization under this section. tions and programs in developing micro- (B) by striking the period at the end and ‘‘(5) DISADVANTAGED ENTREPRENEUR.—The enterprise training and services; inserting the following: ‘‘; or term ‘disadvantaged entrepreneur’ means a ‘‘(3) to aid in researching and developing ‘‘(ii) a full-time employee who has not less microentrepreneur that— the best practices in the field of microenter- than 3 years experience making microloans ‘‘(A) is a low-income person; prise and technical assistance programs for to startup, newly established, or growing ‘‘(B) is a very low-income person; or disadvantaged entrepreneurs; small business concerns; and ‘‘(C) lacks adequate access to capital or ‘‘(4) to provide training and technical as- ‘‘(C) has at least 1 year experience pro- other resources essential for business suc- sistance to disadvantaged Native American viding, as an integral part of its microloan cess, or is economically disadvantaged, as entrepreneurs and prospective entrepreneurs; program, intensive marketing, management, determined by the Administrator. and and technical assistance to its borrowers.’’. ‘‘(6) DISADVANTAGED NATIVE AMERICAN EN- ‘‘(5) for such other activities as the Admin- (b) CONFORMING CHANGE IN AVERAGE TREPRENEUR.—The term ‘disadvantaged Na- istrator determines are consistent with the SMALLER LOAN SIZE.—Section 7(m)(3)(F)(iii) tive American entrepreneur’ means a dis- purposes of this section. of the Small Business Act (15 U.S.C. advantaged entrepreneur who is also a mem- ‘‘(d) QUALIFIED ORGANIZATIONS.—For pur- 636(m)(3)(F)(iii)) is amended by striking ber of an Indian Tribe. poses of eligibility for assistance under this ‘‘$7,500’’ and inserting ‘‘$10,000’’. ‘‘(7) INDIAN TRIBE.—The term ‘Indian tribe’ section, a qualified organization shall be— (c) LIMITATION ON THIRD PARTY TECHNICAL has the same meaning as in section 4(a) of ‘‘(1) a nonprofit microenterprise develop- ASSISTANCE.—Section 7(m)(4)(E)(ii) of the ment organization or program (or a group or Small Business Act (15 U.S.C. the Indian Self-Determination and Edu- collaborative thereof) that has a dem- 636(m)(4)(E)(ii)) is amended— cation Assistance Act. ‘‘(8) INTERMEDIARY.—The term ‘inter- onstrated record of delivering microenter- (1) by striking ‘‘TECHNICAL ASSISTANCE’’ mediary’ means a private, nonprofit entity prise services to disadvantaged entre- and inserting ‘‘THIRD PARTY TECHNICAL AS- that seeks to serve microenterprise develop- preneurs; SISTANCE’’; and ‘‘(2) an intermediary; (2) by striking ‘‘25 percent’’ and inserting ment organizations and programs, as author- ‘‘(3) a microenterprise development organi- ‘‘30 percent’’. ized under subsection (d). (d) LOAN TERMS.—Section 7(m)(1)(B)(i) of ‘‘(9) LOW-INCOME PERSON.—The term ‘low- zation or program that is accountable to a the Small Business Act (15 U.S.C. income person’ means having an income, ad- local community, working in conjunction 636(m)(1)(B)(i)) is amended by striking justed for family size, of not more than— with a State or local government or Indian ‘‘short-term’’. ‘‘(A) for metropolitan areas, 80 percent of tribe; or (e) REPORT ON TRANSFERRED AMOUNTS.— the area median income; and ‘‘(4) an Indian tribe acting on its own, if Section 7(m)(9)(B) of the Small Business Act ‘‘(B) for nonmetropolitan areas, the great- the Indian tribe can certify that no private (15 U.S.C. 636(m)(9)(B)) is amended— er of— organization or program referred to in this (1) by striking ‘‘The Administration’’ and ‘‘(i) 80 percent of the area median income; subsection exists within its jurisdiction. inserting the following: or ‘‘(e) ALLOCATION OF ASSISTANCE; SUB- ‘‘(i) IN GENERAL.—The Administration’’; ‘‘(ii) 80 percent of the statewide nonmetro- GRANTS.— (2) by striking the period after ‘‘financ- politan area median income. ‘‘(1) ALLOCATION OF ASSISTANCE.— ing’’; and ‘‘(10) MICROENTREPRENEUR.—The term ‘‘(A) IN GENERAL.—The Administrator shall (3) by adding at the end the following: ‘microentrepreneur’ means the owner or de- allocate assistance from the Administration ‘‘(ii) REPORT.—The Administration shall veloper of a microenterprise. under this section to ensure that— report, in its annual budget request and per- ‘‘(11) MICROENTERPRISE.—The term ‘micro- ‘‘(i) activities described in subsection (c)(1) formance plan to Congress, on the perform- enterprise’ means a sole proprietorship, part- are funded using not less than 75 percent of ance by the Administration of the require- nership, or corporation that— amounts made available for such assistance; ments of clause (i).’’. ‘‘(A) has fewer than 5 employees; and and (f) ACCURATE SUBSIDY MODEL.—Section ‘‘(B) generally lacks access to conventional ‘‘(ii) activities described in subsection 7(m) of the Small Business Act (15 U.S.C. loans, equity, or other banking services. (c)(2) are funded using not less than 15 per- 636(m)) is amended by adding at the end the ‘‘(12) MICROENTERPRISE DEVELOPMENT ORGA- cent of amounts made available for such as- following: NIZATION OR PROGRAM.—The term ‘micro- sistance.

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‘‘(B) LIMIT ON INDIVIDUAL ASSISTANCE.—No determining compliance with this section, to ‘‘(2) ASSOCIATION.—The term ‘Association’ single person may receive more than 10 per- any records of any organization that receives means the association of small business de- cent of the total funds appropriated under assistance from the Administration in ac- velopment centers recognized under section this section in a single fiscal year. cordance with this section. 21(a)(3)(A). ‘‘(2) TARGETED ASSISTANCE.—The Adminis- ‘‘(3) DATA COLLECTION.—Each organization ‘‘(3) PROGRAM.—The term ‘program’ means trator shall ensure that not less than 50 per- that receives assistance from the Adminis- the program established under subsection cent of the grants made under this section tration in accordance with this section shall (b). are used to benefit very low-income persons, collect information relating to, as applica- ‘‘(4) SMALL BUSINESS DEVELOPMENT CEN- including those residing on Indian reserva- ble— TER.—The term ‘small business development tions. ‘‘(A) the number of individuals counseled center’ means a small business development ‘‘(3) SUBGRANTS AUTHORIZED.— or trained; center described in section 21. ‘‘(A) IN GENERAL.—A qualified organization ‘‘(B) the number of hours of counseling ‘‘(5) STATE SMALL BUSINESS DEVELOPMENT receiving assistance under this section may provided; CENTER.—The term ‘State small business de- provide grants using that assistance to ‘‘(C) the number of startup small business velopment center’ means a small business qualified small and emerging microenter- concerns formed; development center from each State selected prise organizations and programs, subject to ‘‘(D) the number of small business concerns by the Administrator, in consultation with such rules and regulations as the Adminis- expanded; the Association and giving substantial trator determines to be appropriate. ‘‘(E) the number of low-income individuals weight to the Association’s recommenda- ‘‘(B) LIMIT ON ADMINISTRATIVE EXPENSES.— counseled or trained; and tions, to carry out the program on a state- Not more than 7.5 percent of assistance re- ‘‘(F) the number of very low-income indi- wide basis in such State. ceived by a qualified organization under this viduals counseled or trained. ‘‘(b) ESTABLISHMENT.—In accordance with section may be used for administrative ex- ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— this section, the Administrator shall estab- penses in connection with the making of sub- ‘‘(1) IN GENERAL.—There are authorized to lish a program under which the Adminis- grants under subparagraph (A). be appropriated to the Administrator trator shall make grants to State small busi- ‘‘(4) DIVERSITY.—In making grants under $15,000,000 for each of the fiscal years 2005 ness development centers to enable such cen- this section, the Administrator shall ensure through 2007 to carry out the provisions of ters to provide, on a statewide basis, tech- that grant recipients include both large and this section, which shall remain available nical assistance to secondary schools, or to small microenterprise organizations, serving until expended. postsecondary vocational or technical urban, rural, and Indian tribal communities ‘‘(2) TRAINING FOR NATIVE AMERICAN ENTRE- schools, for the development and implemen- PRENEURS.—In addition to the amount au- serving diverse populations. tation of curricula designed to promote voca- thorized under subsection (i)(1), there are au- ‘‘(5) PROHIBITION ON PREFERENTIAL CONSID- tional and technical entrepreneurship. thorized to be appropriated to the Adminis- ERATION OF CERTAIN SBA PROGRAM PARTICI- ‘‘(c) MINIMUM GRANT.—Each grant awarded trator $2,000,000 for each of the fiscal years PANTS.—In making grants under this section, under the program shall be in an amount 2005 through 2007 to carry out the provisions the Administrator shall ensure that any ap- equal to not less than $200,000. of subsection (c)(4), which shall remain plication made by a qualified organization ‘‘(d) APPLICATION.—Each State small busi- available until expended.’’. that is a participant in the program estab- ness development center seeking a grant (b) TRANSFER PROVISIONS.— lished under section 7(m) of the Small Busi- under the program shall submit to the Ad- (1) SMALL BUSINESS ACT AMENDMENTS.—The ness Act does not receive preferential consid- ministrator an application in such form as eration over applications from other quali- Small Business Act (15 U.S.C. 631 et seq.) is amended by redesignating section 37 as sec- the Administrator may require. The applica- fied organizations that are not participants tion shall include information regarding the in such program. tion 38. (2) TRANSFER.—Section 37 of the Riegle goals and objectives of the applicant for the ‘‘(f) MATCHING REQUIREMENTS.— educational programs to be assisted. ‘‘(1) IN GENERAL.—Financial assistance Community Development and Regulatory ‘‘(e) REPORT TO ADMINISTRATOR.—The Ad- under this section shall be matched with Improvement Act of 1994 (15 U.S.C. 6901 note), as so designated by subsection (a) of ministrator shall make as a condition of funds from sources other than the Federal each grant under the program, that not later Government on the basis of not less than 50 this section, is transferred to, and inserted after, section 36 of the Small Business Act. than 18 months after the date of receipt of percent of each dollar provided by the Ad- the grant, the recipient shall transmit to the ministration. (c) REFERENCES.—All references in Federal law to the ‘‘Program for Investment in Administrator a report describing how the ‘‘(2) SOURCES OF MATCHING FUNDS.—Fees, grant funds were used. grants, gifts, funds from loan sources, and Microentrepreneurs Act of 1999’’ or the ‘‘(f) COOPERATIVE AGREEMENTS AND CON- in-kind resources of a grant recipient from ‘‘PRIME Act’’ shall be deemed to be ref- erences to section 37 of the Small Business TRACTS.—The Administrator may enter into public or private sources may be used to Act, as added by this section. a cooperative agreement or contract with comply with the matching requirement in (d) RULE OF CONSTRUCTION.—Nothing in any State small business development center paragraph (1). this section or the amendments made by this receiving a grant under this section to pro- ‘‘(3) EXCEPTION.— section shall affect any grant or assistance vide additional assistance that furthers the ‘‘(A) IN GENERAL.—In the case of an appli- provided under the Program for Investment purposes of this section. cant for assistance under this section with in Microentrepreneurs Act of 1999, before the ‘‘(g) EVALUATION OF PROGRAM.—Not later severe constraints on available sources of date of enactment of this Act, and any such than March 31, 2008, the Administrator shall matching funds, the Administrator may re- grant or assistance shall be subject to the transmit to Congress a report containing an duce or eliminate the matching require- Program for Investment in Microentre- evaluation of the program. ments of paragraph (1). preneurs Act of 1999, as in effect on the day ‘‘(h) CLEARINGHOUSE.—The Association ‘‘(B) LIMITATION.—Not more than 10 per- before the date of enactment of this Act. shall act as a clearinghouse of information cent of the total funds made available from and expertise regarding vocational and tech- the Administration in any fiscal year to S. 139 nical entrepreneurship education programs. carry out this section may be excepted from Be it enacted by the Senate and House of Rep- In each fiscal year in which grants are made the matching requirements of paragraph (1), resentatives of the United States of America in under the program, the Administrator shall as authorized by subparagraph (A) of this Congress assembled, provide additional assistance to the Associa- paragraph. SECTION 1. SHORT TITLE. tion to carry out the functions described in ‘‘(g) APPLICATIONS FOR ASSISTANCE.—An This Act may be cited as the ‘‘Vocational this subsection. application for assistance under this section and Technical Entrepreneurship Develop- ‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— shall be submitted in such form and in ac- ment Act of 2005’’. cordance with such procedures as the Admin- There are authorized to be appropriated to SEC. 2. VOCATIONAL AND TECHNICAL ENTRE- carry out this section $7,000,000 for each of istrator shall establish. PRENEURSHIP DEVELOPMENT PRO- ‘‘(h) RECORDKEEPING AND REPORTING.— the fiscal years 2006 through 2008. Such sums GRAM. shall remain available until expended.’’. ‘‘(1) IN GENERAL.—Each organization that The Small Business Act (15 U.S.C. 631 et receives assistance from the Administration seq.) is amended— By Mrs. CLINTON (for herself in accordance with this section shall— (1) by redesignating section 37 as section ‘‘(A) submit to the Administration not less 38; and and Mr. SCHUMER): than once in every 18-month period, financial (2) by inserting after section 36 the fol- S. 140. A bill to provide for a domes- statements audited by an independent cer- lowing: tic defense fund to improve the Na- tified public accountant; ‘‘SEC. 37. VOCATIONAL AND TECHNICAL ENTRE- tion’s homeland defense, and for other ‘‘(B) submit an annual report to the Ad- PRENEURSHIP DEVELOPMENT PRO- purposes; to the Committee on Home- ministration on its activities; and GRAM. land Security and Governmental Af- ‘‘(C) keep such records as may be necessary ‘‘(a) DEFINITIONS.—In this section, the fol- to disclose the manner in which any assist- lowing definitions shall apply: fairs. ance under this section is used. ‘‘(1) ADMINISTRATOR.—The term ‘Adminis- Mrs. CLINTON. Mr. President, I ask ‘‘(2) ACCESS.—The Administration shall trator’ means the Administrator of the unanimous consent that the text of the have access upon request, for the purposes of Small Business Administration. bill be printed in the RECORD.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00250 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S357 There being no objection, the bill was (6) The Hart-Rudman Commission stated its classification as a metropolitan city for ordered to be printed in the RECORD, as almost 2 years ago that ‘‘Congress should es- all purposes under this Act, if it elects to follows: tablish a system for allocating scarce re- have its population included in an urban sources based less on dividing the spoils and county under subsection (d). S. 140 more on addressing identified threats and (C) ELECTION BY A CITY.—Notwithstanding Be it enacted by the Senate and House of Rep- vulnerabilities. To do this, the Federal Gov- subparagraph (B), a city may elect not to re- resentatives of the United States of America in ernment should consider such factors as pop- tain its classification as a metropolitan city. Congress assembled, ulation, population density, vulnerability as- Any unit of general local government that SECTION 1. SHORT TITLE; TABLE OF CONTENTS. sessment, and presence of critical infrastruc- was classified as a metropolitan city in any (a) SHORT TITLE.—This Act may be cited as ture within each State.’’ year, may, upon submission of written noti- the ‘‘Domestic Defense Fund Act of 2005’’. (7) In addition to the need for threat and fication to the Secretary, relinquish such (b) TABLE OF CONTENTS.— risk-based funding, direct funding to our classification for all purposes under this Act Sec. 1. Short title; table of contents major cities and counties across the country if it elects to have its population included Sec. 2. Findings is necessary if we are to ensure that these with the population of a county for purposes Sec. 3. Definitions communities, who are on the front lines of of qualifying for assistance (for such fol- Sec. 4. Grants to States, units of general our nation’s homeland defense, receive crit- lowing fiscal year) under section 5(e) as an local government and Indian ical Federal homeland security resources urban county. tribes; authorizations quickly and efficiently. Numerous reports by (6) NONQUALIFYING COMMUNITY.—The term Sec. 5. Statement of activities and review organizations such as the United States Con- ‘‘nonqualifying community’’ means an area Sec. 6. Activities eligible for assistance ference of Mayors, have clearly dem- that is not a metropolitan city or part of an Sec. 7. Allocation and distribution of funds onstrated that the current method of distrib- urban county and does not include Indian Sec. 8. State and regional planning and com- uting Federal homeland security resources tribes. munication systems intended for local communities has not (7) POPULATION.—The term ‘‘population’’ Sec. 9. Urban Area Security Initiative worked. Too often, too many communities means total resident population based on Sec. 10. Flexible emergency assistance fund Sec. 11. Federal preparedness, equipment, receive resources, if at all, years after Con- data compiled by the United States Bureau and training standards gress appropriated the subject funds. of the Census and referable to the same point Sec. 12. Nondiscrimination in programs and SEC. 3. DEFINITIONS. or period of time. activities (a) DEFINITIONS.—As used in this Act, the (8) SECRETARY.—The term ‘‘Secretary’’ Sec. 13. Remedies for noncompliance with following definitions shall apply: means the Secretary of the Department of requirements (1) CITY.—The term ‘‘city’’ means— Homeland Security. Sec. 14. Reporting requirements (A) any unit of general local government (9) STATE.—The term ‘‘State’’ means any Sec. 15. Consultation by Attorney General that is classified as a municipality by the State of the United States, or any instru- Sec. 16. Interstate agreements or compacts; United States Bureau of the Census; or mentality thereof approved by the Governor; purposes (B) any other unit of general local govern- and the Commonwealth of Puerto Rico, the Sec. 17. Matching requirements; suspension ment that is a town or township and which, United States Virgin Islands, American of requirements for economi- in the determination of the Secretary— Samoa, Guam, and the Northern Mariana Is- cally distressed areas (i) possesses powers and performs functions lands. SEC. 2. FINDINGS. comparable to those associated with munici- (10) UNIT OF GENERAL LOCAL GOVERNMENT.— Congress makes the following findings: palities; The term ‘‘unit of general local government’’ (1) Since the September 11, 2001, terrorist (ii) is closely settled; and means any city, county, town, township, par- attacks on our country, communities all (iii) does not contain within its boundaries ish, village, or other general purpose polit- across America have been on the front lines any incorporated place, as defined by the ical subdivision of a State; a combination of in the war against terrorism on United United States Bureau of the Census, that has such political subdivisions is recognized by States soil. not entered into cooperation agreements the Secretary; and the District of Columbia. (2) Since September 11, 2001, communities with such town or township to undertake or (11) URBAN COUNTY.—The term ‘‘urban have been forced to bear a significant por- to assist in the performance of homeland se- county’’ means any county within a metro- tion of the burden that goes along with the curity objectives. politan area. war against terrorism, a burden that local (2) FEDERAL GRANT-IN-AID PROGRAM.—The (b) BASIS AND MODIFICATION OF DEFINI- governments should not have to bear alone. term ‘‘Federal grant-in-aid program’’ means TIONS.— (3) Our homeland defense will only be as a program of Federal financial assistance (1) BASIS.—Where appropriate, the defini- strong as the weakest link at the State and other than loans and other than the assist- tions listed in subsection (a) shall be based, local level. By providing our communities ance provided by this Act. with respect to any fiscal year, on the most recent data compiled by the United States with the resources and tools they need to (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ bolster emergency response efforts and pro- means any Indian tribe, band, group, and na- Bureau of the Census and the latest pub- vide for other emergency response initia- tion, including Alaska Indians, Aleuts, and lished reports of the Office of Management tives, we will have a better-prepared home Eskimos, and any Alaskan Native Village, of and Budget available 90 days before the be- front and a stronger America. the United States, which is considered an eli- ginning of such fiscal year. (4) Homeland security experts have repeat- gible recipient under the Indian Self-Deter- (2) MODIFICATION.—The Secretary may by edly called upon Congress to allocate home- mination and Education Assistance Act regulation change or otherwise modify the land security resources based on threat- and (Public Law 93–638) or was considered an eli- meaning of the terms defined in subsection risk-based factors. The National Commission gible recipient under chapter 67 of title 31, (a) in order to reflect any technical change on Terrorist Attacks Upon the United States United States Code, prior to the repeal of or modification thereof made subsequent to (referred to in this Act as the ‘‘9/11 Commis- such chapter. such date by the United States Bureau of the Census or the Office of Management and sion’’) stated in its report: ‘‘We understand (4) METROPOLITAN AREA.—The term ‘‘met- the contention that every State and city ropolitan area’’ means a standard metropoli- Budget. (c) DESIGNATION OF PUBLIC AGENCIES.—The needs to have some minimum infrastructure tan statistical area as established by the Of- chief executive officer of a State or a unit of for emergency response. But Federal home- fice of Management and Budget. general local government may designate 1 or land security assistance should not remain a (5) METROPOLITAN CITY.— more public agencies, including existing program for general revenue sharing. It (A) IN GENERAL.—The term ‘‘metropolitan local public agencies, to undertake activities should supplement State and local resources city’’ means— assisted under this Act. based on the risks or vulnerability that (i) a city within a metropolitan area that (d) INCLUSION OF LOCAL GOVERNMENTS IN merit additional support. Congress should is the central city of such area, as defined URBAN COUNTY POPULATION.—With respect to not use this money as a pork barrel.’’ The and used by the Office of Management and program years beginning with the program Commission made unequivocally clear that Budget; or year for which grants are made available the current method of allocating the major- (ii) any other city, within a metropolitan from amounts appropriated for fiscal year ity of Federal homeland security resources area, which has a population of not less than 2005 under section 4, the population of any to states and local communities, on a per 50,000. unit of general local government which is in- capita basis alone, must be changed. (B) PERIOD OF CLASSIFICATION.—Any city cluded in that of an urban county shall be in- (5) Not only did the 9/11 Commission rec- that was classified as a metropolitan city for cluded in the population of such urban coun- ommend that such changes be made in how at least 2 years pursuant to subparagraph (A) ty for 3 program years beginning with the Federal homeland security funds are allo- shall remain classified as a metropolitan program year in which its population was cated, but commissions before it, such as the city. Any unit of general local government first so included and shall not otherwise be Homeland Security Independent Task Force that becomes eligible to be classified as a eligible for a grant as a separate entity, un- of the Council on Foreign Relations, chaired metropolitan city, and was not classified as less the urban county does not receive a by former Senators Gary Hart and Warren a metropolitan city in the immediately pre- grant for any year during such 3-year period. Rudman, have strongly recommended it as ceding fiscal year, may, upon submission of (e) EXCLUSION OF LOCAL GOVERNMENTS well. written notification to the Secretary, defer FROM URBAN COUNTY POPULATION.—

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(1) NOTIFICATION BY URBAN COUNTY.—Any SEC. 5. STATEMENT OF ACTIVITIES AND REVIEW. views and audits as may be necessary or ap- county seeking qualification as an urban (a) APPLICATION.— propriate to determine— county, including any urban county seeking (1) IN GENERAL.—A State, metropolitan (A) in the case of grants awarded under to continue such qualification, shall notify city, urban county, or unit of general local section 7(b), whether the grantee— each unit of general local government, lo- government desiring a grant under sub- (i) has carried out its activities; cated within its geographical boundaries and section (b) or (i) of section 7 shall submit an (ii) where applicable, has carried out its eligible to elect to have its population ex- application to the Secretary that contains— activities and its certifications in accord- cluded from that of the urban county, of its (A) a statement of homeland security ob- ance with the requirements and the primary opportunity to make such an election. Such jectives and projected use of grant funds; and objectives of this Act and with other applica- notification shall, at a time and in a manner (B) the certifications required under para- ble laws; and prescribed by the Secretary, be provided so graph (2) and, if appropriate, subsection (b). (iii) has a continuing capacity to carry out as to provide a reasonable period for re- (2) GRANTEE STATEMENT.— those activities in a timely manner; and sponse prior to the period for which such (A) CONTENTS.— (B) in the case of grants to States made qualification is sought. (i) LOCAL GOVERNMENT.—In the case of met- under section 7(i), whether the State— (2) FAILURE OF LOCAL GOVERNMENT TO ELECT ropolitan cities or urban counties receiving (i) has distributed funds to units of general TO BE EXCLUDED.—The population of any unit grants under section 7(b) and units of general local government in a timely manner and in of general local government which is pro- local government receiving grants under sec- conformance to the method of distribution vided such notification and which does not tion 7(i)(3), the statement of projected use of described in its statement; inform, at a time and in a manner prescribed funds shall consist of proposed homeland se- (ii) has carried out its certifications in by the Secretary, the county of its election curity activities. compliance with the requirements of this to exclude its population from that of the (ii) STATES.—In the case of States receiv- Act and other applicable laws; and county shall, if the county qualifies as an ing grants under section 7, the statement of (iii) has made such reviews and audits of urban county, be included in the population projected use of funds shall consist of the the units of general local government as may of such urban county as provided under sub- method by which the States will distribute be necessary or appropriate to determine section (d). funds to units of general local government. whether they have satisfied the applicable SEC. 4. GRANTS TO STATES, UNITS OF GENERAL (B) CONSULTATION.—In preparing the state- performance criteria described in subpara- LOCAL GOVERNMENT AND INDIAN ment required under this subsection, the graph (A). TRIBES; AUTHORIZATIONS. grantee shall consult with appropriate law (4) ADJUSTMENTS.—The Secretary may (a) AUTHORIZATION.—The Secretary may enforcement agencies and emergency re- make appropriate adjustments in the award grants to States, units of general local sponse authorities. amount of the annual grants in accordance government, and Indian tribes to carry out with the Secretary’s findings under this sub- activities in accordance with this Act. (C) FINAL STATEMENT.—A copy of the final section. With respect to assistance made (b) AUTHORIZATION OF APPROPRIATIONS.— statement and the certifications required available to units of general local govern- (1) IN GENERAL.—There are authorized to be under paragraph (3) and, where appropriate, ment under section 7(i)(3), the Secretary appropriated to carry out section 7— subsection (b), shall be furnished to the Sec- may adjust, reduce, or withdraw such assist- (A) $3,500,000 for each of the fiscal years retary and the Attorney General. ance, or take other action as appropriate in 2006 through 2009; and (D) MODIFICATIONS.—Any final statement accordance with the Secretary’s reviews and (B) such sums as may be necessary for fis- of activities may be modified or amended audits under this subsection, except that cal year 2010 and each fiscal year thereafter. from time to time by the grantee in accord- funds already expended on eligible activities (2) STATE, REGIONAL, AND LOCAL PLANNING, ance with the same procedures required under this Act shall not be recaptured or de- TRAINING, AND COMMUNICATION SYSTEMS.— under this paragraph for the preparation and ducted from future assistance to such units There are authorized to be appropriated to submission of such statement. of general local government. carry out section 8— (3) CERTIFICATION OF ENUMERATED CRITERIA (c) AUDITS.—Insofar as they relate to funds (A) $1,000,000,000 for each of the fiscal years BY GRANTEE TO SECRETARY.—A grant under provided under this Act, the financial trans- 2006 through 2009; and section 7 shall not be awarded unless the actions of recipients of such funds may be (B) such sums as may be necessary for fis- grantee certifies to the satisfaction of the audited by the General Accounting Office cal year 2010 and each fiscal year thereafter. Secretary that the grantee— under such rules and regulations as may be (3) URBAN AREA SECURITY INITIATIVE (A) has developed a homeland security plan prescribed by the Comptroller General of the (UASI).—There are authorized to be appro- that identifies both short- and long-term United States. The representatives of the priated to carry out section 9— homeland security needs that have been de- General Accounting Office shall have access (A) $2,000,000,000 for each of the fiscal years veloped in accordance with the primary ob- to all books, accounts, records, reports, files, 2006 through 2009; and jective and requirements of this Act; and and other papers, things, or property belong- (B) such sums as may be necessary for fis- (B) will comply with the other provisions ing to or in use by such recipients pertaining cal year 2010 and each fiscal year thereafter. of this Act and with other applicable laws. to such financial transactions and necessary (4) HOMELAND SECURITY FLEXIBLE EMER- (b) SUBMISSION OF ANNUAL PERFORMANCE to facilitate the audit. GENCY ASSISTANCE.—There are authorized to REPORTS, AUDITS, AND ADJUSTMENTS.— (d) METROPOLITAN CITY AS PART OF URBAN be appropriated to carry out section 10— (1) IN GENERAL.—Each grantee shall submit COUNTY.—In any case in which a metropoli- (A) $500,000,000 for each of the fiscal years to the Secretary, at a time determined by tan city is located, in whole or in part, with- 2006 through 2009; and the Secretary, a performance and evaluation in an urban county, the Secretary may, upon (B) such sums as may be necessary for fis- report concerning the use of funds made the joint request of such city and county, ap- cal year 2010 and each fiscal year thereafter. available under section 7, together with an (c) SUPPLEMENT NOT SUPPLANT.—Funds ap- assessment by the grantee of the relation- prove the inclusion of the metropolitan city propriated pursuant to the authority of this ship of such use to the objectives identified as part of the urban county for purposes of section shall be used to supplement and not in the grantee’s statement under subsection submitting a statement under subsection (a) supplant full Federal funding for other first (a)(2). and carrying out activities under this Act. responder programs, including— (2) UNIFORM REPORTING REQUIREMENTS.— SEC. 6. ACTIVITIES ELIGIBLE FOR ASSISTANCE. (1) the Community Oriented Policing Serv- (A) RECOMMENDATIONS BY NATIONAL ASSO- Activities assisted under this Act may in- ices Program, as authorized under part Q of CIATIONS.—The Secretary shall encourage clude— title I of the Omnibus Crime Control and and assist national associations of grantees (1) funding additional law enforcement, Safe Streets Act of 1968 (42 U.S.C. 3796dd et eligible under section 7, national associa- fire, and emergency resources, including cov- seq.); tions of States, and national associations of ering overtime expenses; (2) the Local Law Enforcement Block units of general local government in non- (2) purchasing and refurbishing personal Grant Program, as authorized under the Vio- qualifying areas to develop and recommend protective equipment for fire, police, and lent Crime Control and Law Enforcement to the Secretary, not later than 1 year after emergency personnel and acquire state-of- Act of 1994 (Public Law 103–322) and described the date of enactment of this Act, uniform the-art technology to improve communica- in H.R. 728, as passed by the House of Rep- recordkeeping, performance reporting, eval- tion and streamline efforts; resentatives on February 14, 1995; uation reporting, and auditing requirements (3) improving cyber and infrastructure se- (3) the Edward Byrne Memorial State and for such grantees, States, and units of gen- curity by improving— Local Law Enforcement Assistance Pro- eral local government, respectively. (A) security for water treatment plants, grams, as authorized under part E of title I (B) ESTABLISHMENT OF UNIFORM REPORTING distribution systems, other water infrastruc- of the Omnibus Crime Control and Safe REQUIREMENTS.—Based on the Secretary’s ap- ture, nuclear power plants, electrical grids, Streets Act of 1968 (42 U.S.C. 3750 et seq.); proval of the recommendations submitted and other energy infrastructure; (4) the Assistance to Firefighters Grant pursuant to subparagraph (A), the Secretary (B) security for tunnels, bridges, locks, ca- Program, as authorized under section 33 of shall establish uniform reporting require- nals, railway systems, airports, land and the Federal Fire Prevention and Control Act ments for grantees, States, and units of gen- water ports, and other transportation infra- of 1974 (15 U.S.C. 2229); and eral local government. structure; (5) section 34 of the Federal Fire Preven- (3) REVIEWS AND AUDITS.—Not less than an- (C) security for oil and gas pipelines and tion and Control Act of 1974 (15 U.S.C. 2229a). nually, the Secretary shall make such re- storage facilities;

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00252 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S359 (D) security for chemical plants and trans- (F) the vulnerability of the metropolitan tics, United States Ports Report by All Land portation of hazardous substances; city as it pertains to land and water port se- Modes; or (E) security for agriculture infrastructure; curity; (ii) one of the 25 largest United States and (G) the vulnerability of the metropolitan water ports by metric tons and value, as (F) security for national icons and Federal city as it pertains to the security of energy stated by the Department of Transportation, facilities that may be terrorist targets; infrastructure; Maritime Administration, United States (4) assisting local emergency planning (H) the vulnerability of the metropolitan Foreign Waterborne Transportation Statis- committees so that local public agencies can city as it pertains to the security of inland tics, design, review, and improve disaster re- waterway infrastructure; the ratio under paragraph (1)(F) shall be 1 di- sponse systems; (I) the vulnerability of the metropolitan vided by the total number of metropolitan (5) assisting communities in coordinating city as it pertains to the security of freight cities that are located within 50 miles of a their efforts and sharing information with and passenger rail transportation infrastruc- United States land or water port, not to ex- all relevant agencies involved in responding ture; ceed 100. to terrorist attacks; (J) the vulnerability of the metropolitan (G) VULNERABILITY AS IT PERTAINS TO EN- (6) establishing timely notification sys- city as it pertains to the security of aviation ERGY INFRASTRUCTURE SECURITY.—If a metro- tems that enable communities to commu- infrastructure; politan city is among the 100 metropolitan nicate with each other when a threat (K) the vulnerability of the metropolitan cities that are closest to, or within 50 miles emerges; city as it pertains to the security of agri- of, non-nuclear power generating plants, (7) improving communication systems to culture infrastructure; compressors, and other significant compo- provide information to the public in a timely (L) the proximity of the metropolitan city nents of critical energy infrastructure as manner about the facts of any threat and the to the nearest national icons and Federal fa- identified by the Department of Energy or precautions the public should take; and cilities that may be a terrorist target, as de- the Department of Homeland Security, the (8) devising a homeland security plan, in- termined by the Department of Homeland ratio under paragraph (1)(G) shall be 1 di- cluding determining long-term goals and Security, and the proximity of all metropoli- vided by the total number of metropolitan short-term objectives, evaluating the tan cities to the nearest national icons and cities that are located within 50 miles of progress of the plan, and carrying out the Federal buildings that may be a terrorist critical energy infrastructure, not to exceed management, coordination, and monitoring target, as determined by the Department of 100. of activities necessary for effective planning Homeland Security; and (H) VULNERABILITY AS IT PERTAINS TO IN- implementation. (M) the threat to the metropolitan city LAND WATERWAY INFRASTRUCTURE SECURITY.— SEC. 7. ALLOCATION AND DISTRIBUTION OF based upon intelligence information from If a metropolitan city is among the 100 met- FUNDS. the Department of Homeland Security; ropolitan cities that are closest to, or within (2) CLARIFICATION OF COMPUTATION RA- 50 miles of, the most significant locks, ca- (a) SET-ASIDE FOR INDIAN TRIBES.— TIOS.— nals, and other components of critical inland (1) IN GENERAL.—The Secretary shall re- (A) RELATIVE WEIGHT OF FACTORS.—In de- waterway system infrastructure as identified serve 1 percent of the amount appropriated termining the weighted average of the ratios by the Department of Transportation, the for each fiscal year for grants pursuant to under paragraph (1)— ratio under paragraph (1)(H) shall be 1 di- section 4(b)(1) (excluding the amounts for ac- (i) threat, as defined by paragraph (1)(M), vided by the total number of metropolitan tivities described in section 6) for grants to shall constitute 25 percent; cities that are located within 50 miles of Indian tribes. (ii) population, as defined by paragraph critical inland water infrastructure, not to (2) SELECTION OF INDIAN TRIBES.— (1)(A), shall constitute 20 percent; exceed 100. (A) IN GENERAL.—The Secretary shall dis- (iii) population density, as defined by para- (I) VULNERABILITY AS IT PERTAINS TO RAIL tribute amounts under this paragraph to In- graph (1)(B), shall constitute 15 percent; and TRANSPORTATION INFRASTRUCTURE SECU- dian tribes on the basis of a competition con- (iv) the remaining factors shall be equally RITY.—If a metropolitan city is among the ducted pursuant to specific criteria for the weighted. 100 metropolitan cities that are closest to, or selection of Indian tribes to receive such (B) POPULATION DENSITY.—The metropoli- within 50 miles of, the largest railroad hubs amounts. tan cities shall be ranked according to the and other significant components of critical (B) RULEMAKING.—The Secretary, after no- density of their populations in calculating freight and passenger rail infrastructure, as tice and public comment, shall promulgate the weighted average of this factor. The pop- identified by the Department of Transpor- regulations, which establish the criteria de- ulation density ratio shall be 1 divided by tation, the ratio under paragraph (1)(I) shall scribed in subparagraph (A). the total number of metropolitan cities, not be 1 divided by the total number of metro- (b) ALLOCATION TO METROPOLITAN CITIES to exceed 100. politan cities that are located within 50 AND URBAN COUNTIES.— (C) PROXIMITY TO INTERNATIONAL BOR- miles of critical inland water infrastructure, (1) ALLOCATION PERCENTAGE.—Of the DERS.—If a metropolitan city is located with- not to exceed 100. amount remaining after allocations have in 50 miles of an international border, the (J) VULNERABILITY AS IT PERTAINS TO AVIA- been made to Indian tribes under subsection ratio under paragraph (1)(C) shall be 1 di- TION INFRASTRUCTURE SECURITY.—If a metro- (a), the Secretary shall, not later than 60 vided by the total number of metropolitan politan city is among the 100 metropolitan days after the date on which such funds are cities, not to exceed 100, which are located cities that are closest to, or within 50 miles appropriated, allocate and directly transfer within 50 miles of an international border. of, major passenger or cargo airports that 70 percent to metropolitan cities and urban (D) VULNERABILITY AS IT PERTAINS TO CHEM- are significant components of the Nation’s counties. ICAL SECURITY.—If a metropolitan city is air transportation infrastructure as identi- (2) ENTITLEMENT.—Except as otherwise spe- within the vulnerable zone of a worst-case fied by the Department of Transportation, cifically authorized, each metropolitan city chemical release (as specified in the most re- the ratio under paragraph (1)(J) shall be 1 di- and urban county shall be entitled to an an- cent risk management plans filed with the vided by the total number of metropolitan nual grant, to the extent authorized beyond Environmental Protection Agency or an- cities that are located within 50 miles of fiscal year 2008, from such allocation in an other instrument development by the Envi- critical aviation transportation infrastruc- amount not to exceed its basic amount com- ronmental Protection Agency or the Depart- ture, not to exceed 100. puted pursuant to subsections (c) and (d). ment of Homeland Security that captures (K) VULNERABILITY AS IT PERTAINS TO AGRI- (c) COMPUTATION OF AMOUNT ALLOCATED TO the same information for the same facili- CULTURE INFRASTRUCTURE SECURITY.—If a METROPOLITAN CITIES.— ties), the ratio under paragraph (1)(D) shall metropolitan city is among the 100 metro- (1) VULNERABILITY AND THREAT FACTORS.— be 1 divided by the total number of metro- politan cities that are closest to, or within 50 The Secretary shall calculate the amount to politan cities that are within such a zone, miles of, major feed yards, food processing be allocated to each metropolitan city, not to exceed 100. facilities, and other significant components which shall bear the same ratio to the allo- (E) VULNERABILITY AS IT PERTAINS TO NU- of the nation’s agriculture infrastructure, as cation for all metropolitan cities as the CLEAR SECURITY.—If a metropolitan city is defined and determined by the Department weighted average of— located within 50 miles of an operating nu- of Agriculture and the Department of Home- (A) the population (including tourist, mili- clear power plant, as identified by the Nu- land Security, the ratio under paragraph tary, and commuting populations) of the clear Regulatory Commission, the ratio (1)(K) shall be 1 divided by the total number metropolitan city divided by the population under paragraph (1)(E) shall be 1 divided by of metropolitan cities that are located with- of all metropolitan cities; the total number of metropolitan cities, not in 50 miles of critical agriculture infrastruc- (B) the population density of the metro- to exceed 100, which are located within 50 ture, not to exceed 100. politan city; miles of an operating nuclear power plant. (L) PROXIMITY TO NATIONAL ICONS AND FED- (C) the proximity of the metropolitan city (F) VULNERABILITY AS IT PERTAINS TO PORT ERAL BUILDINGS.—If a metropolitan city is to international borders; SECURITY.—If a metropolitan city is located among the 100 metropolitan cities that are (D) the vulnerability of the metropolitan within 50 miles of— closest to, or within 50 miles of, national city as it pertains to chemical security; (i) one of the 75 largest United States icons and Federal buildings that the Depart- (E) the vulnerability of the metropolitan ports, as stated by the Department of Trans- ment of Homeland Security determines are city as it pertains to nuclear security; portation, Bureau of Transportation Statis- most vulnerable with respect to a terrorist

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00253 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S360 CONGRESSIONAL RECORD — SENATE January 24, 2005 attack, the ratio under paragraph (1)(L) shall exceed 100, which are located within 50 miles portation infrastructure as identified by the be 1 divided by the total number of metro- of an international border. Department of Transportation, the ratio politan cities that are located within 50 (D) VULNERABILITY AS IT PERTAINS TO CHEM- under paragraph (1)(J) shall be 1 divided by miles of such icons or Federal buildings, not ICAL SECURITY.—If an urban county is within the total number of urban counties that are to exceed 100. the vulnerable zone of a worst-case chemical located within 50 miles of critical aviation (M) INTELLIGENCE.—If a metropolitan city release (as specified in the most recent risk transportation infrastructure, not to exceed is among the 100 metropolitan cities that management plans filed with the Environ- 100. have been identified by the Department of mental Protection Agency or another instru- (K) VULNERABILITY AS IT PERTAINS TO AGRI- Homeland Security as being special alert or ment development by the Environmental CULTURE INFRASTRUCTURE SECURITY.—If heightened alert status for the longest peri- Protection Agency or the Department of urban county is among the 100 urban coun- ods of time, the ratio under paragraph (1)(M) Homeland Security that captures the same ties that are closest to, or within 50 miles of, shall be 1 divided by the total number of information for the same facilities), the major feed yards, food processing facilities, metropolitan cities that have been identified ratio under paragraph (1)(D) shall be 1 di- and other significant components of the Na- by the Department of Homeland Security, vided by the total number of urban counties tion’s agriculture infrastructure, as defined not to exceed 100. that are within such a zone, not to exceed and determined by the Department of Agri- (d) COMPUTATION OF AMOUNT ALLOCATED TO 100. culture and the Department of Homeland Se- URBAN COUNTIES.— (E) VULNERABILITY AS IT PERTAINS TO NU- curity, the ratio under paragraph (1)(K) shall (1) VULNERABILITY AND THREAT FACTORS.— CLEAR SECURITY.—If an urban county is lo- be 1 divided by the total number of urban The Secretary shall determine the amount cated within 50 miles of an operating nuclear counties that are located within 50 miles of to be allocated to each urban county, which power plant, as identified by the Nuclear critical agriculture infrastructure, not to ex- shall bear the same ratio to the allocation Regulatory Commission, the ratio under ceed 100. for all urban counties as the weighted aver- paragraph (1)(E) shall be 1 divided by the (L) PROXIMITY TO NATIONAL ICONS AND FED- age of— total number of urban counties, not to ex- ERAL BUILDINGS.—If an urban county is (A) the population (including tourist, mili- ceed 100, which are located within 50 miles of among the 100 urban counties that are clos- tary, and commuting populations) of the an operating nuclear power plant. est to, or within 50 miles of, national icons urban county divided by the population of all (F) VULNERABILITY AS IT PERTAINS TO PORT and Federal buildings that the Department urban counties; SECURITY.—If an urban county is located of Homeland Security determines are most (B) the population density of the urban within 50 miles of— vulnerable with respect to a terrorist attack, county; (i) one of the 75 largest United States the ratio under paragraph (1)(L) shall be 1 di- (C) the proximity of the urban county to ports, as stated by the Department of Trans- vided by the total number of urban counties international borders; portation, Bureau of Transportation Statis- that are located within 50 miles of such icons (D) the vulnerability of the urban county tics, United States Ports Report by All Land or Federal buildings, not to exceed 100. as it pertains to chemical security; Modes; or (M) INTELLIGENCE.—If an urban county is (E) the vulnerability of the urban county (ii) one of the 25 largest United States among the 100 urban counties that have been as it pertains to nuclear security; water ports by metric tons and value, as identified by the Department of Homeland (F) the vulnerability of the urban county stated by the Department of Transportation, Security as being special alert or heightened as it pertains land and water port security; Maritime Administration, United States alert status for the longest periods of time, (G) the vulnerability of the urban county Foreign Waterborne Transportation Statis- the ratio under paragraph (1)(M) shall be 1 as it pertains to the security of energy infra- tics, the ratio under paragraph (1)(F) shall be divided by the total number of urban coun- structure; 1 divided by the total number of urban coun- ties that have been identified by the Depart- (H) the vulnerability of the urban county ties that are located within 50 miles of a ment of Homeland Security, not to exceed as it pertains to the security of inland water- United States land or water port, not to ex- 100. way infrastructure; ceed 100. (e) EXCLUSIONS.— (I) the vulnerability of the urban county as (G) VULNERABILITY AS IT PERTAINS TO EN- (1) IN GENERAL.—In computing amounts or it pertains to the security of freight and pas- ERGY INFRASTRUCTURE SECURITY.—If an urban exclusions under subsection (d) with respect senger rail transportation infrastructure; county is among the 100 urban counties that to any urban county, units of general local (J) the vulnerability of the urban county are closest to, or within 50 miles of, non-nu- government located in the county that are as it pertains to the security of aviation in- clear power generating plants, compressors, not included in the population of the county frastructure; and other significant components of critical in determining the eligibility of the county (K) the vulnerability of the urban county energy infrastructure as identified by the to receive a grant under this subsection shall as it pertains to the security of agriculture Department of Energy or the Department of be excluded, except that any independent infrastructure; Homeland Security, the ratio under para- city (as defined by the Bureau of the Census) (L) the proximity of the urban county to graph (1)(G) shall be 1 divided by the total shall be included if it— the nearest national icons and Federal facili- number of urban counties that are located (A) is not part of any county; ties that may be a terrorist target, as deter- within 50 miles of critical energy infrastruc- (B) is not eligible for a grant; mined by the Department of Homeland Secu- ture, not to exceed 100. (C) is contiguous to the urban county; rity, and the proximity of all urban counties (H) VULNERABILITY AS IT PERTAINS TO IN- (D) has entered into cooperation agree- to the nearest national icons and Federal LAND WATERWAY INFRASTRUCTURE SECURITY.— ments with the urban county which provide buildings that may be a terrorist target, as If an urban county is among the 100 urban that the urban county is to undertake or to determined by the Department of Homeland counties that are closest to, or within 50 assist in the undertaking of essential com- Security; and miles of, the most significant locks, canals, munity development and housing assistance (M) the threat to the urban county based and other components of critical inland wa- activities with respect to such independent upon intelligence information from the De- terway system infrastructure as identified city; and partment of Homeland Security; by the Department of Transportation, the (E) is not included as a part of any other (2) CLARIFICATION OF COMPUTATION RA- ratio under paragraph (1)(H) shall be 1 di- unit of general local government for pur- TIOS.— vided by the total number of urban counties poses of this section. (A) RELATIVE WEIGHT OF FACTORS.—In de- that are located within 50 miles of critical (2) INDEPENDENT CITIES.—Any independent termining the weighted average of the ratios inland water infrastructure, not to exceed city that is included in any fiscal year for under paragraph (1)— 100. purposes of computing amounts pursuant to (i) threat, as defined in paragraph (1)(M), (I) VULNERABILITY AS IT PERTAINS TO RAIL the preceding sentence shall not be eligible shall constitute 25 percent; TRANSPORTATION INFRASTRUCTURE SECU- to receive assistance under subsection (i) for (ii) population, as defined in paragraph RITY.—If an urban county is among the 100 that fiscal year. (1)(A), shall constitute 20 percent; urban counties that are closest to, or within (f) INCLUSIONS.— (iii) population density, as defined in para- 50 miles of, the largest railroad hubs and (1) LOCAL GOVERNMENT STRADDLING COUNTY graph (1)(B), shall constitute 15 percent; and other significant components of critical LINE.—In computing amounts under sub- (iv) the remaining factors shall be equally freight and passenger rail infrastructure, as section (d) with respect to any urban county, weighted. identified by the Department of Transpor- there shall be included all of the area of any (B) POPULATION DENSITY.—The population tation, the ratio under paragraph (1)(I) shall unit of local government which is part of, density ratio shall be 1 divided by the total be 1 divided by the total number of urban but is not located entirely within the bound- number of urban counties, not to exceed 100. counties that are located within 50 miles of aries of, such urban county if— The urban counties shall be ranked accord- critical inland water infrastructure, not to (A) the part of such unit of local govern- ing to the density of their populations in cal- exceed 100. ment that is within the boundaries of such culating the weighted average of this factor. (J) VULNERABILITY AS IT PERTAINS TO AVIA- urban county would otherwise be included in (C) PROXIMITY TO INTERNATIONAL BOR- TION INFRASTRUCTURE SECURITY.—If an urban computing the amount for such urban coun- DERS.—If an urban county is located within county is among the 100 urban counties that ty under this section; and 50 miles of an international border, the ratio are closest to, or within 50 miles of, major (B) the part of such unit of local govern- under paragraph (1)(C) shall be 1 divided by passenger or cargo airports that are signifi- ment that is not within the boundaries of the total number of urban counties, not to cant components of the Nation’s air trans- such urban county is not included as a part

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00254 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S361 of any other unit of local government for the (C) such city and county agree to such (iii) the amount the State would otherwise purpose of this section. transfer of responsibility for the administra- be allocated under the formula set forth in (2) USE OF GRANT FUNDS OUTSIDE URBAN tion of such amounts. this section. COUNTY.—Any amount received under this (B) EXCEPTION.—Notwithstanding subpara- (i) ALLOCATION TO STATES ON BEHALF OF section by an urban county described under graph (A), the United States Virgin Islands, NON-QUALIFYING COMMUNITIES.— paragraph (1) may be used with respect to American Samoa, Guam, and the Northern (1) IN GENERAL.—Of the amount appro- the part of such unit of local government Mariana Islands shall each be allocated 0.25 priated pursuant to section 4 that remains that is outside the boundaries of such urban percent of the total amount appropriated in after allocations under subsections (a) and county. each fiscal year for grants to States under (b), the Secretary shall allocate 30 percent (g) POPULATION.— this section. among the States for use in nonqualifying (1) EFFECT OF CONSOLIDATION.—Where data (5) ADMINISTRATION.— communities. are available, the amount to be allocated to (A) IN GENERAL.—Each State shall be re- (2) ALLOCATION FORMULA.— a metropolitan city that has been formed by sponsible for the administration of all funds (A) FACTORS.—The Secretary shall make the consolidation of 1 or more metropolitan received and distributed under paragraph (1). the allocation for each State based on fac- cities within an urban county shall be equal Except as provided under subparagraph (B), tors such as threat, vulnerability, popu- to the sum of the amounts that would have the State shall pay for all administrative ex- lation, population density, the presence of been allocated to the urban county or cities penses incurred by the State in carrying out critical infrastructure, and other factors and the balance of the consolidated govern- its responsibilities under this Act. considered appropriate by the Secretary. ment, if such consolidation had not occurred. (B) FEDERAL SHARE.—From the amounts (B) PRO-RATA REDUCTION.—The Secretary (2) LIMITATION.—Paragraph (1) shall apply received by each State for distribution in only to a consolidation that— shall make a pro rata reduction of each nonqualifying areas, the State may deduct (A) included all metropolitan cities that amount allocated to the nonqualifying com- an amount to pay— received grants under this section for the fis- munities in each State under subparagraph (i) the first $150,000 of its administrative cal year preceding such consolidation and (A) so that the nonqualifying communities expenses under this subsection; and that were located within the urban county; in each State will receive the same percent- (ii) 50 percent of any State administrative expenses under this subsection in excess of (B) included the entire urban county that age of the total amount available under this $150,000, which amount shall not exceed 2 received a grant under this section for the subsection as the percentage that such com- percent of the amount received by the State fiscal year preceding such consolidation; and munities would have received if the total under paragraph (1). (C) took place on or after January 1, 2005. amount available had equaled the total (C) DISTRIBUTION.—Any distribution by the (3) GROWTH RATE.—The population growth amount allocated under subparagraph (A). Secretary under paragraph (1) shall be made rate of all metropolitan cities defined in sec- (3) DISTRIBUTION.— in accordance with— tion 3(a)(6) shall be based on the population (A) STATES.—A State shall distribute (i) determinations of the Secretary; of— amounts it receives under this subsection to (ii) statements submitted and the other re- (A) metropolitan cities other than consoli- units of general local government located in quirements under section 5 (except for sub- dated governments the grant for which is de- nonqualifying areas of the State in such section (c)); termined under this paragraph; and manner and at such time as the Secretary (iii) regulations and procedures prescribed (B) cities that were metropolitan cities be- shall prescribe, consistent with the state- by the Secretary. fore their incorporation into consolidated ment submitted under section 5(a), and not (D) REALLOCATION.— governments. later than 45 days after the date on which (i) FAILURE TO COMPLY.—Any amounts allo- (4) ENTITLEMENT SHARE.—For purposes of the State receives such amounts from the cated for use in a State under paragraph (1) calculating the entitlement share for the Federal Government. that are not received by the State for any balance of the consolidated government (B) CERTIFICATION.—Before a State may re- fiscal year because of failure to meet the re- under this subsection, the entire balance ceive or distribute amounts allocated under quirements of subsection (a) or (b) of section shall be considered to have been an urban this subsection, the State must certify 5 shall be added to amounts allocated to all county. that— (i) with respect to units of general local States under paragraph (1) for the succeeding (h) REALLOCATION.— fiscal year. (1) IN GENERAL.—Except as provided under government in nonqualifying areas, the (ii) CLOSEOUT.—Any amounts allocated for paragraph (2), any amounts allocated to a State— (I) provides, or will provide, technical as- use in a State under paragraph (1) that be- metropolitan city or an urban county under come available as a result of the closeout of sistance to units of general local government this section that are not received by the city a grant made by the Secretary under this in connection with homeland security initia- or county for a fiscal year because of failure section in nonqualifying areas of the State tives; to meet the requirements of subsection (a) or shall be added to amounts allocated to the (II) will not refuse to distribute such (b) of section 5, or that otherwise became State under paragraph (1) for the fiscal year amounts to any unit of general local govern- available, shall be reallocated in the suc- in which such amounts become available. ceeding fiscal year to the other metropolitan ment on the basis of the particular eligible (6) SINGLE UNIT.—Any combination of units activity selected by such unit of general cities and urban counties in the same metro- of general local governments may not be re- local government to meet its homeland secu- politan area that certify to the satisfaction quired to obtain recognition by the Sec- rity objectives, except that this clause may of the Secretary that they would be ad- retary to be treated as a single unit of gen- not be considered to prevent a State from es- versely affected by the loss of such amounts eral local government for purposes of this from the metropolitan area. tablishing priorities in distributing such subsection. (2) RATIO.—The amount of the share of amounts on the basis of the activities se- (7) DEDUCTION.—From the amounts re- funds reallocated under this subsection for lected; and ceived under paragraph (1) for distribution in any metropolitan city or urban county shall (III) has consulted with local elected offi- nonqualifying areas, the State may use not bear the same ratio to the total of such re- cials from among units of general local gov- more than 1 percent to provide technical as- allocated funds in the metropolitan area as ernment located in nonqualifying areas of sistance to local governments. the amount of funds awarded to the city or that State in determining the method of dis- (8) APPLICABILITY.—Any activities con- county for the fiscal year in which the re- tribution of funds required by subparagraph ducted with amounts received by a unit of allocated funds become available bears to (A); and general local government under this sub- the total amount of funds awarded to all (ii) each unit of general local government section shall be subject to the applicable metropolitan cities and urban counties in to be distributed funds will be required to provisions of this Act and other Federal law the same metropolitan area for that fiscal identify its homeland security objectives, in the same manner and to the same extent year. and the activities to be undertaken to meet as activities conducted with amounts re- (3) TRANSFER.—Notwithstanding para- such objectives. ceived by a unit of general local government graphs (1) and (2), the Secretary may, upon (4) MINIMUM AMOUNT.— under subsection (a). request, transfer to any metropolitan city (A) IN GENERAL.—Except as provided under (j) QUALIFICATIONS AND DETERMINATIONS.— the responsibility for the administration of subparagraph (B), each State shall be allo- The Secretary may prescribe such qualifica- any amounts received, but not obligated, by cated, for each fiscal year authorized under tion or submission dates as the Secretary de- the urban county in which such city is lo- this Act and under this section, the greater termines to be necessary to permit the com- cated if— of— putations and determinations required by (A) such city was an included unit of gen- (i) 0.25 percent of the total amount appro- this section to be made in a timely manner, eral local government in such county prior priated in the fiscal year for grants to States and all such computations and determina- to the qualification of such city as a metro- that are not located on an international bor- tions shall be final and conclusive. politan city; der under this section; (k) PRO RATA REDUCTION AND INCREASE.— (B) such amounts were designated and re- (ii) 0.45 percent of the fatal amount appro- (1) REDUCTION.—If the total amount avail- ceived by such county for use in such city priated in the fiscal year for grants to States able for distribution in any fiscal year to prior to the qualification of such city as a that are located on an international border; metropolitan cities and urban counties under metropolitan city; and or this section is insufficient to provide the

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00255 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S362 CONGRESSIONAL RECORD — SENATE January 24, 2005 amounts to which metropolitan cities and ations and regional, multistate, or intrastate practices to facilitate the most effective and urban counties would be entitled under this authorities, based upon the population of the efficient use of funds authorized under this section, and funds are not otherwise appro- areas covered by each regional cooperative. Act. priated to meet the deficiency, the Secretary SEC. 9. URBAN AREA SECURITY INITIATIVE. (b) CONSULTATION.—Not later than 1 year shall meet the deficiency through a pro rata (a) ALLOCATIONS.— after the date of enactment of this Act, the reduction of all amounts determined under (1) IN GENERAL.—From the amounts appro- Secretary shall develop the standards de- this section. priated pursuant to section 4(b)(3), the Sec- scribed in subsection (a) in consultation with (2) INCREASE.—If the total amount avail- retary shall allocate $2,000,000 for discre- first responders, States, local communities, able for distribution in any fiscal year to tionary grants made under the Urban Area nongovernmental homeland security experts, metropolitan cities and urban counties under Security Initiative to high-threat, high-risk and such other persons and organizations as this section exceeds the amounts to which urban areas, as determined by the Secretary, the Secretary determines to be appropriate. metropolitan cities and urban counties for rail security, port security, inter-city bus (c) REPORTS.— would be entitled under this section, the Sec- security, trucking industry security, and (1) DEVELOPMENT OF STANDARDS AND BEST retary shall distribute the excess through a high-threat non-profit organizations. PRACTICES.—The Secretary shall submit a re- pro rata increase of all amounts determined (2) DISTRIBUTION.—Grant funds awarded port to Congress on the progress made in de- under this section. under this section shall be transferred di- veloping the standards and best practices de- SEC. 8. STATE AND REGIONAL PLANNING AND rectly to Urban Areas Security Initiative re- scribed in subsection (a)— COMMUNICATION SYSTEMS. cipients not later than 60 days after the date (A) not later than 90 days after the date of (a) ALLOCATIONS.—From the amounts ap- on which funds are appropriated pursuant to enactment of this Act; and propriated pursuant to section 4(b)(2), the section 4(b)(3). (B) not later than 180 days after the date of Secretary shall allocate $1,000,000,000 to (b) SELECTION CRITERIA.—In selecting high- enactment of this Act. States, regional cooperations, and units of threat, high-risk urban area grantees under (2) ALLOCATION METHODS.—The Secretary general local government for— this section, the Secretary shall consider— shall submit a report to Congress detailing (1) homeland defense planning within the (1) credible threat; the specific methods used to make the allo- States; (2) vulnerability; cations under section 9. The report shall be (2) providing increased security through (3) the presence of critical infrastructure, submitted in unclassified form to the great- additional first responder personnel; including infrastructure described in section est extent consistent with the protection of (3) purchasing and refurbishing personal 7; law enforcement-sensitive information and protective equipment for first responder per- (4) population; classified information and the administra- sonnel; (5) population density; tion of applicable law. The report may con- (4) homeland defense planning within the (6) identified needs of public agencies; and tain a classified annex, if necessary. regions; (7) other factors considered appropriate by SEC. 12. NONDISCRIMINATION IN PROGRAMS (5) the development and maintenance of the Secretary. AND ACTIVITIES. Statewide training facilities and homeland (c) HOMELAND SECURITY PLAN.—Each (a) IN GENERAL.—No person in the United security best-practices clearinghouses; and grantee awarded a grant under this section States shall on the ground of race, color, na- (6) the development and maintenance of shall submit a homeland security plan to the tional origin, religion, or sex be excluded communications systems that can be used State in which it is located and to the Sec- from participation in, be denied the benefits between and among first responders, includ- retary that describes the intended use of of, or be subjected to discrimination under ing law enforcement, fire, and emergency grant funds received under this section. any program or activity funded in whole or medical personnel. (d) MINIMUM AMOUNT.—Section 1014(c)(3) of in part with funds made available under this (b) USE OF FUNDS.—Of the amount allo- Act. cated under subsection (a)— the USA PATRIOT ACT (42 U.S.C. 3711(c)(3)) and section 7(i)(4) of this Act shall not apply (b) AGE OR HANDICAP.—Any prohibition (1) $500,000,000 shall be used by the States against discrimination on the basis of age for homeland defense planning and coordina- to funds awarded under this section. SEC. 10. FLEXIBLE EMERGENCY ASSISTANCE under the Age Discrimination Act of 1975 (42 tion within each State; U.S.C. 6101 et seq.) or with respect to an oth- (2) $50,000,000 shall be used by regional co- FUND. (a) IN GENERAL.—From the amounts appro- erwise qualified handicapped individual as operations and regional, multistate, or intra- provided in section 504 of the Rehabilitation state authorities for homeland defense plan- priated pursuant to section 4(b)(4), $500,000,000 shall be used to create a flexible Act of 1973 (29 U.S.C. 794) shall also apply to ning and coordination within each region; any such program or activity. (3) $50,000,000 shall be used by the States to emergency assistance fund, from which the SEC. 13. REMEDIES FOR NONCOMPLIANCE WITH develop and maintain statewide training fa- Secretary shall provide funds directly to State and units of local government that REQUIREMENTS. cilities and best-practices clearinghouses; If the Secretary finds, after reasonable no- and incur extraordinary homeland security costs. (b) RELEASE OF FUNDS.—The Secretary tice and opportunity for a hearing, that a re- (4) $400,000,000 shall be used by the States cipient of assistance under this Act has and units of general local government to de- may release emergency assistance funds to a State or local community as the Secretary failed to comply substantially with any pro- velop and maintain communications systems vision of this Act, the Secretary shall— that can be used between and among first re- determines to be appropriate, including— (1) when the Secretary determines that a (1) terminate payments to the recipient sponders at the State and local level, includ- under this Act; ing law enforcement, fire, and emergency State or local community may be the spe- cific target of a terrorist threat; (2) reduce payments to the recipient under personnel. this Act by an amount equal to the amount (c) ALLOCATIONS TO STATES.— (2) when a local community is the venue of of such payments which were not expended (1) IN GENERAL.—Amounts allocated to a high profile trial related to homeland secu- in accordance with this Act; or States under this section shall be allocated rity or terrorism; (3) limit the availability of payments among the States based on factors such as (3) when the State or local community has under this Act to programs, projects, or ac- threat, vulnerability, population, population been asked to assist in a Federal investiga- tivities not affected by such failure to com- density, the presence of critical infrastruc- tion concerning homeland security or ter- ply. ture, and other factors considered appro- rorism; and priate by the Secretary. (4) when an agency of the Federal Govern- SEC. 14. REPORTING REQUIREMENTS. (2) MINIMUM AMOUNT PROVISION.—The provi- ment has requested the State or local com- (a) IN GENERAL.—Not later than 180 days sion under section 7(i)(4) relating to a min- munity to assist that agency in performing after the end of each fiscal year in which as- imum amount shall apply to amounts allo- homeland security functions. sistance is awarded under this Act, the Sec- cated to States under this section. (c) REIMBURSEMENTS.—The Secretary may retary shall submit to Congress a report con- (3) LOCAL COMMUNICATIONS SYSTEMS.— disburse flexible emergency assistance funds taining— (A) IN GENERAL.—Not less than 50 percent to reimburse States and units of general (1) a description of the progress made in of the amounts allocated under subsection local government for increased personnel accomplishing the objectives under this Act; (b)(4) shall be used for the development and costs associated with the activation of first (2) a summary of the use of such funds dur- maintenance of local communications sys- responders who serve in the Reserves or Na- ing the preceding fiscal year; and tems. tional Guard. (3) a description of the activities carried (B) DISTRIBUTION OF FUNDS.—Each State (d) MINIMUM AMOUNT.—Section 1014(c)(3) of out under section 7. shall distribute amounts reserved for local the USA PATRIOT ACT (42 U.S.C. 3711(c)(3)) (b) REPORTS TO SECRETARY.—The Secretary communications systems in that State under and section 7(i)(4) of this Act shall not apply may require recipients of assistance under subparagraph (A) to units of general local to funds awarded under this section. this Act to submit such reports and other in- government not later than 45 days after the SEC. 11. FEDERAL PREPAREDNESS, EQUIPMENT, formation as may be necessary in order for State receives such amounts from the Fed- AND TRAINING STANDARDS. the Secretary to comply with subsection (a). eral Government. (a) IN GENERAL.—The Department of Home- SEC. 15. CONSULTATION BY ATTORNEY GENERAL. (d) ALLOCATIONS TO REGIONAL COOPER- land Security shall develop national home- In carrying out the provisions of this Act ATIONS.—Funds allocated under subsection land security preparedness, first responder including the issuance of regulations, the (b)(2) shall be allocated to regional cooper- training, and equipment standards, and best Secretary shall consult with the Attorney

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00256 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S363 General and other Federal departments and proved work activity, but the second scription drug benefits than medicare agencies administering Federal grant-in-aid year of post-secondary education study beneficiaries; to the Committee on programs. is not. Homeland Security and Governmental SEC. 16. INTERSTATE AGREEMENTS OR COM- The limitation on post-secondary Affairs. PACTS; PURPOSES. education and training raises a number The consent of Congress is hereby given to Mr. DAYTON. Mr. President, I ask any 2 or more States to enter into agree- of concerns, not the least of which is unanimous consent that the text of the ments or compacts, not in conflict with any whether individuals may be forced into bill be printed in the RECORD. law of the United States— lower paying, short-term employment There being no objection, the bill was (1) for cooperative effort and mutual as- that will lead them back onto public ordered to be printed in the RECORD, as sistance in support of homeland security assistance because they are unable to follows: planning and programs carried out under support themselves or their families. S. 143 this Act as they pertain to interstate areas Well, according to recent studies, this Be it enacted by the Senate and House of Rep- and to localities within such States; and is exactly what has happened in far too (2) to establish such agencies, joint or oth- resentatives of the United States of America in erwise, that the States consider desirable for many cases. Congress assembled, making such agreements and compacts effec- According to a findings of the Con- SECTION 1. SHORT TITLE. tive. gressional Research Service, although This Act may be cited as the ‘‘Taste of Our SEC. 17. MATCHING REQUIREMENTS; SUSPEN- the majority of recipients who have Own Medicine Act of 2005’’. SION OF REQUIREMENTS FOR ECO- left the welfare rolls left because they SEC. 2. LIMITATION ON PRESCRIPTION DRUG NOMICALLY DISTRESSED AREAS. became employed, most remained poor. BENEFITS OF MEMBERS OF CON- (a) MATCHING REQUIREMENT.—Grant recipi- The research also revealed that the GRESS. ents shall contribute, from funds other than hourly wage for these former welfare (a) LIMITATION ON BENEFITS.—Notwith- those received under this Act, an amount recipients ranged from $5.50 to $8.80 per standing any other provision of law, the ac- equal to 10 percent of the total funds re- tuarial value of the prescription drug bene- ceived under this Act, which shall be used in hour. Study after study indicates that fits of any Member of Congress enrolled in a accordance with the grantee’s statement of health benefits plan under chapter 89 of title homeland security objectives. short-term training programs raise the 5, United States Code, may not exceed the (b) WAIVER FOR ECONOMIC DISTRESS.—The income of workers only marginally, actuarial value of basic prescription drug Secretary shall waive the matching require- while completion of at least a 2-year coverage (as defined in section 1860D–2(a)(3) ment under subsection (a) for grant recipi- associate degree has the greater poten- of the Social Security Act (42 U.S.C. 1395w– ents that the Secretary determines to be tial of breaking the cycle of poverty for 102(a)(3)), as added by section 101(a) of the economically distressed. welfare recipients. According to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law By Mr. LEVIN (for himself and U.S. Census Bureau, the mean earnings of adults with an associate degree are 108–173; 117 Stat. 2071)). Mr. JEFFORDS): (b) REGULATIONS.—The Director of the Of- S. 141. A bill to amend part A of title 20 percent higher than adults who have fice of Personnel Management shall promul- IV of the Social Security Act to allow not achieved such a degree. gate regulations to carry out this section. up to 24 months of vocational edu- In June of 2003, we were very pleased cational training to be counted as a that our proposal was included in the By Mr. KOHL (for himself and work activity under the temporary as- Senate Finance Committee reported Mr. CORZINE): sistance to needy families program; to bill, which reauthorized TANF. How- S. 144. A bill to change the date for the Committee on Finance. ever, the reauthorization bill was not regularly scheduled Federal elections I am pleased to be joined by Senator considered by the full Senate. Rather and establish polling place hours; to JEFFORDS in reintroducing legislation the Temporary Assistance for Needy the Committee on Rules and Adminis- that seeks to add an important meas- Families Act has been twice extended. tration. ure of flexibility to a provision of the It is our hope that the Senate will Mr. KOHL. Mr. President, today I am Temporary Assistance for Needy Fami- again act favorably and expeditiously introducing the Weekend Voting Act. lies program, TANF, under the Per- on this legislation and that the House This legislation will change the day for sonal Responsibility and Work Oppor- will support this much-needed State Congressional and Presidential elec- tunity Reconciliation Act of 1996. The flexibility. We must do what is nec- tions from the first Tuesday in Novem- legislation we are introducing in- essary to achieve TANF’s intended goal ber to the first weekend in November. creases the limit on the amount of vo- of getting families permanently off of This legislation is virtually identical cational education training that a welfare and onto self-sufficiency. to legislation that I first proposed in State can count towards meeting its All citizens should have the oppor- 1997 in the 105th Congress and most re- work participation rate, from 12 to 24 tunity to become productive and suc- cently reintroduced in the 107th Con- months. cessful members of the workforce. gress. This legislation enjoys the support of Again, I urge my colleagues to act The last two elections have revealed the American Association of Univer- quickly on this legislation. This modi- a glaring need for us to rethink how we sity Women, with over 100,000 mem- fication will give the States the flexi- conduct elections in our Nation. The bers; The Workforce Alliance, a coali- bility they need to improve the eco- 2000 election galvanized Congress into tion of experienced leaders nationwide nomic status of families across Amer- passing major election reform legisla- from the field of workforce develop- ica. tion. The Help American Vote Act, ment, who know what works in pre- I ask unanimous consent that the which was enacted into law in 2002, was paring people for jobs; the National As- text of the bill be printed in the an important step forward in estab- sociation of State Directors of Career RECORD. lishing minimum standards for states There being no objection, the bill was Technical Education Consortium; the in the administration of federal elec- ordered to be printed in the RECORD, as Center for law and Social Policy and tions and in providing funds to replace follows: the American Association of Commu- outdated voting systems and improve nity Colleges. S. 141 election administration. The HAVA Under the pre–1996 Aid to Families Be it enacted by the Senate and House of Rep- legislation also created a new federal with Dependent Children program, re- resentatives of the United States of America in agency, the Election Assistance Com- Congress assembled, cipients could participate in post-sec- mission, to serve as a clearinghouse for SECTION 1. INCREASE IN NUMBER OF MONTHS ondary vocational training or commu- OF VOCATIONAL EDUCATIONAL election administration information. nity college programs for up to 24 TRAINING COUNTED AS A WORK AC- That Commission is finally on its feet months. While I support TANF’s em- TIVITY UNDER THE TANF PROGRAM. after a delayed start. phasis on moving welfare recipients Section 407(d)(8) of the Social Security Act However, as the 2004 election made (42 U.S.C. 607(d)(8)) is amended by striking more quickly into jobs, I am troubled ‘‘12’’ and inserting ‘‘24’’. clear, there is much that still needs to by the restriction on post-secondary be done. education training, limiting it to 12 By Mr. DAYTON: With more and more voters needing months. One year of vocational edu- S. 143. A bill to ensure that Members to cast their ballots on Election Day, cation is, under current law, an ap- of Congress do not receive better pre- we need to build on the movement

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00257 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S364 CONGRESSIONAL RECORD — SENATE January 24, 2005 which already exists to make it easier Veterans Day. As expected, the pro- SEC. 2. CHANGE IN CONGRESSIONAL ELECTION for Americans to cast their ballots by posal was not well received among vet- DAY TO SATURDAY AND SUNDAY. erans and I do not endorse such a Section 25 of the Revised Statutes (2 U.S.C. providing alternatives to voting on just 7) is amended to read as follows: one election day. Twenty-six States, move, but I share the Commission’s ‘‘SEC. 25. The first Saturday and Sunday including my own state of Wisconsin, goal of moving election day to a non- after the first Friday in November, in every now permit any registered voter to working day. even numbered year, are established as the vote by absentee ballot. These States Since the mid-19th century, election days for the election, in each of the States constitute 45 percent of the voting age day has been on the first Tuesday of and Territories of the United States, of Rep- citizens of the United States. Twenty November. Ironically, this date was se- resentatives and Delegates to the Congress three states permit in-person early vot- lected because it was convenient for commencing on the 3d day of January there- after.’’. ing at election offices or at other sat- voters. Tuesdays were traditionally court day, and land-owning voters were SEC. 3. CHANGE IN PRESIDENTIAL ELECTION ellite locations. The state of Oregon DAY TO SATURDAY AND SUNDAY. now conducts statewide elections com- often coming to town anyway. Section 1 of title 3, United States Code, is pletely by mail. These innovations are Just as the original selection of our amended by striking ‘‘Tuesday next after the critical if we are to conduct fair elec- national voting day was done for voter first Monday’’ and inserting ‘‘first Saturday tions for it has become unreasonable to convenience, we must adapt to the and Sunday after the first Friday’’. expect that a nation of 294 million peo- changes in our society to make voting SEC. 4. POLLING PLACE HOURS IN CONTINENTAL ple can line up at the same time and easier for the regular family. Sixty per- UNITED STATES. cast their ballots at the same time. cent of all households have two work- (a) IN GENERAL.— (1) PRESIDENTIAL GENERAL ELECTION.— And if we continue to try to do so, we ing adults. Since most polls in the United States are open only 12 hours, Chapter 1 of title 3, United States Code, is will encounter even more reports of amended— broken machines and long lines in the from 7 a.m. to 7 p.m., voters often have only one or two hours to vote. As we (A) by redesignating section 1 as section rain and registration errors that create 1A; and barriers to voting. saw in this last election, long lines in (B) by inserting before section 1A the fol- That is why I have been a long-time many polling places kept some waiting lowing: advocate of moving our Federal elec- much longer than one or two hours. If ‘‘§ 1. Polling place hours in continental tion day from the first Tuesday after voters have children, and are dropping United States the first Monday in November to the them off at day care, or if they have a ‘‘(a) DEFINITIONS.—In this section: first weekend in November. Holding long work commute, there is just not ‘‘(1) CONTINENTAL UNITED STATES.—The our federal elections on a weekend will enough time in a workday to vote. term ‘continental United States’ means a With long lines and chaotic polling create more opportunities for voters to State (other than Alaska and Hawaii) and places becoming the unacceptable the District of Columbia. cast their ballots and will help end the norm in many communities, we have ‘‘(2) PRESIDENTIAL GENERAL ELECTION.—The gridlock at the polling places which an obligation to reexamine how our term ‘Presidential general election’ means threaten to undermine our elections. the election for electors of President and Under this bill, polls would be open Nation votes. In the last election, too many Americans had to confront a va- Vice President. nationwide for a uniform period of time ‘‘(b) POLLING PLACE HOURS.— riety of obstacles to cast their ballots from Saturday, 6 p.m. eastern time to ‘‘(1) IN GENERAL.—Each polling place in the at their local polling places. We can do Sunday, 6 p.m. eastern time. Polls in continental United States shall be open, better by offering more flexible voting other time zones would also open and with respect to a Presidential general elec- hours for Americans, especially work- tion, beginning on Saturday at 6:00 p.m. east- close at this time. Election officials ing families. ern standard time and ending on Sunday at would be permitted to close polls dur- Serious allegations have been raised 6:00 p.m. eastern standard time. ing the overnight hours if they deter- about voting irregularities in Ohio dur- ‘‘(2) EARLY CLOSING.—A polling place may mine it would be inefficient to keep ing the 2004 presidential election. I close between the hours of 12:00 p.m. (mid- them open. Because the polls are open night) and 5:00 a.m. local time as provided by agree with many of my colleagues that from Saturday to Sunday, they also the law of the State in which the polling these allegations must be investigated would not interfere with religious ob- place is located.’’. to the fullest extent possible because servances. (2) CONGRESSIONAL GENERAL ELECTION.— every eligible citizen in this nation Keeping polls open the same hours Section 25 of the Revised Statutes of the must have an equal opportunity to ex- United States (2 U.S.C. 7) is amended— across the continental United States, ercise the constitutional right to cast a (A) by redesignating section 25 as section also addresses the challenge of keeping vote in federal elections. 25A; and results on one side of the country, or In the meantime, we have an obliga- (B) by inserting before section 25A the fol- even a State, from influencing voting tion to do more than investigate. If we lowing: in places where polls are still open. are to grant all Americans an equal op- ‘‘SEC. 25. POLLING PLACE HOURS IN THE CONTI- Moving elections to the weekend will NENTAL UNITED STATES. portunity to participate in the elec- expand the pool of buildings available ‘‘(a) DEFINITIONS.—In this section: toral process, and to elect our rep- for polling stations and people avail- ‘‘(1) CONTINENTAL UNITED STATES.—The resentatives in this great democracy, able to work at the polls, addressing term ‘continental United States’ means a then we must be willing to reexamine State (other than Alaska and Hawaii) and the critical shortage of poll workers. all aspects of voting in America. the District of Columbia. Most important, weekend voting has Changing our election day to a week- ‘‘(2) CONGRESSIONAL GENERAL ELECTION.— the potential to increase voter turnout end may seem like a change of great The term ‘congressional general election’ by giving all voters ample opportunity magnitude. Given the stakes—the in- means the general election for the office of to get to the polls without creating a Senator or Representative in, or Delegate or tegrity of future elections—I hope my national holiday. There is already evi- Resident Commissioner to, the Congress. colleagues will recognize it as a com- dence that holding elections on a non- ‘‘(b) POLLING PLACE HOURS.— mon sense proposal whose time has working day can increase voter turn- ‘‘(1) IN GENERAL.—Each polling place in the come. continental United States shall be open, out. In one survey of 44 democracies, 29 I ask unanimous consent that the with respect to a congressional general elec- held elections on holidays or weekends text of the Weekend Voting Act be tion, beginning on Saturday at 6:00 p.m. east- and in all these cases voter turnout printed in the RECORD. ern standard time and ending on Sunday at surpassed our country’s voter partici- There being no objection, the bill was 6:00 p.m. eastern standard time. pation rates. Closer to home, weekend ‘‘(2) EARLY CLOSING.—A polling place may ordered to be printed in the RECORD, as voting in some California counties re- close between the hours of 12:00 p.m. (mid- follows: night) and 5:00 a.m. local time as provided by sulted in increased voter turnout com- S. 144 pared to comparable elections held on the law of the State in which the polling Be it enacted by the Senate and House of Rep- place is located.’’. Tuesdays. resentatives of the United States of America in (b) CONFORMING AMENDMENTS.— In 2001, the National Commission on Congress assembled, (1) The table of sections for chapter 1 of Federal Election Reform recommended SECTION 1. SHORT TITLE. title 3, United States Code, is amended by that we move our federal election day This Act may be cited as the ‘‘Weekend striking the item relating to section 1 and to a national holiday, in particular Voting Act’’. inserting the following:

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State Date of vote Referred by Vote in legislature Signatures required Signatures turned in Certified by SOS Outcome of vote Percentages

1 Arkansas ...... Nov. 2...... People’s Initiative ...... N/A ...... 80,570 ...... 200,000 ...... Certified ...... Passed ...... Y: 75 N: 25 2 Georgia ...... Nov. 2 ...... Legislature ...... S: 40–14 ...... N/A ...... N/A ...... N/A ...... Passed ...... Y: 77 H: 122–52–3–3 ...... N: 23 3 Kentucky ...... Nov. 2 ...... Legislature ...... S: 33–4–1 ...... N/A ...... N/A ...... N/A ...... Passed ...... Y: 75 H: 85–11 ...... N: 25 4 Louisiana ...... Sept. 18 ...... Legislature ...... S: 31–6 ...... N/A ...... N/A ...... N/A ...... Passed ...... Y: 78 H: 88–13 ...... N: 22 5 Michigan ...... Nov. 2...... People’s Initiative ...... N/A ...... 317,757 ...... 500,000 ...... Certified ...... Passed ...... Y: 59 N: 41 6 Mississippi ...... Nov. 2 ...... Legislature ...... S: 51–0–1 ...... N/A ...... N/A ...... N/A ...... Passed ...... Y: 86 H: 97–17 ...... N: 14 7 Missouri ...... Aug. 3 ...... Legislature ...... S: 26–6 ...... N/A ...... N/A ...... N/A ...... Passed ...... Y: 70.8 H: 90–63 ...... N: 29.2 8 Montana ...... Nov. 2...... People’s Initiative ...... N/A ...... 41,020 ...... 70,000 ...... Certified ...... Passed ...... Y: 66 N: 34 9 North Dakota ..... Nov. 2 ...... People’s Initiative ...... N/A ...... 25,688 ...... 52,000 ...... Certified ...... Passed ...... Y: 73 N: 27 10 Ohio ...... Nov. 2...... People’s Initiative ...... N/A ...... 322,899 ...... Waiting for ...... Passed ...... Y: 62 ...... 390,508 ...... N: 38. 11 Oklahoma ...... Nov. 2 ...... Legislature ...... S: 38–7 ...... N/A ...... N/A ...... N/A ...... Passed ...... Y: 76 H: 92–4 ...... N: 24 12 Oregon ...... Nov. 2...... People’s Initiative ...... N/A ...... 100,840 ...... 204,360 ...... Certified ...... Passed ...... Y: 57 N: 43

Mr. ALLARD. The emphasis here tant to the American people. It is im- The PRESIDING OFFICER. Without must be on the process, democratic, de- portant we continue to move forward objection, it is so ordered. liberative, and responsive to the elec- with the momentum that has evolved Mr. ALLARD. Again, in conclusion, I torate, not to just appointed judges as a result of our debate last year and thank the leadership for their support and lawyers. We want the American the momentum that has evolved as a public to have a say in this debate. result of the elections of this past fall. and my colleagues for their support on this particular amendment. We had a Courtrooms are not the place for this I am excited about introducing the important decision about the most fun- Marriage Protection Amendment, number of elections for Senate seats damental institution of mankind, and which is exactly the same amendment where this was a very important issue that is the definition of marriage. we debated on the floor of the Senate and critical to the election of many of Courts should interpret the law, not last year. our new Members in the Senate. We write it. Mr. President, before I wrap up, I ask have at least five votes that have So we are eager to begin to have unanimous consent that Senator switched as a result of this election. I hearings, to talk about the research, to COBURN be added as an original cospon- think that is the American people hav- debate and have constructive dialog on sor and Senator STEVENS be added as ing an opportunity to speak their this very important issue. It is impor- an original cosponsor. mind.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00259 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S366 CONGRESSIONAL RECORD — SENATE January 24, 2005 I can say, this amendment is to pro- essary, reaching across the aisle and Congress. This is essentially the same tect the voice of the American people. working on a bipartisan basis. We ran as the amendment that came within a The proper way to have this debate is surpluses and began the process we single vote of the two-thirds necessary in the legislative bodies of America. needed to pay down the national debt. for passage, twice in two previous Sen- That includes the Congress and each This in turn promised, among other ates. In addition, this amendment and every legislature. things, to help us safeguard the future would not count the Social Security Again, I thank the leader for his of Social Security. surplus in its calculation of a balanced leadership on this particular issue. I Then events intervened. budget. Those annual surpluses would also thank my colleagues who showed A return to budget deficits was be set aside exclusively to meet the fu- up at the press conference this morning caused by an economic recession and a ture needs of Social Security bene- to talk about this issue, particularly war begun by terrorist attacks. Even ficiaries. Senator SANTORUM, Senator before taking office in 2001, President It’s a new day, a new year, and a new HUTCHISON, Senator SESSIONS, and Sen- Bush correctly foresaw the coming re- Senate. We have the opportunity of a ator THUNE who joined me in the press cession and prescribed the right medi- fresh start and, hopefully, the wisdom conference. I thank them for their cine—the tax relief that has bolstered of experience. Today, with the first leadership this morning in that press the economy and has saved and created piece of legislation I am introducing in conference. jobs. The current economic recovery, the 109th Congress, I call on the Senate Mr. ALLARD. Mr. President, I ask in turn, has prevented even worse Fed- to safeguard the future, by considering unanimous consent that the text of the eral budget deficits. and passing a balanced budget amend- joint resolution be printed in the The return to deficit spending can ment to the Constitution—a bill of eco- RECORD. and should be a temporary phe- nomic rights for our future and our There being no objection, the joint nomenon. We are rebounding from the children. resolution was ordered to be printed in recession of 2001 and the body blow to I ask unanimous consent that a copy the RECORD, as follows: the economy caused by the war with of this joint resolution, proposing a S.J. RES. 1 terrorism. balanced budget amendment to the Resolved by the Senate and House of Rep- We must do whatever it takes to win Constitution, be printed in the RECORD. resentatives of the United States of America in that war. Providing for the self-defense There being no objection, the joint Congress assembled (two-thirds of each House and survival of our people and our Na- resolution was ordered to be printed in concurring therein), That the following article tion is the most fundamental responsi- the RECORD, as follows: is proposed as an amendment to the Con- bility of the Federal Government. That stitution of the United States, which shall be S. J. RES. 2 valid to all intents and purposes as part of principle has been reflected in every Resolved by the Senate and House of Rep- the Constitution when ratified by the legis- significant version of the balanced resentatives of the United States of America in latures of three-fourths of the several States: budget constitutional amendment, in Congress assembled (two-thirds of each House ‘‘ARTICLE — exceptions for war and imminent mili- concurring therein), That the following article is proposed as an amendment to the Con- ‘‘SECTION 1. This article may be cited as tary threats. Historically, that prin- stitution of the United States, which shall be the ‘Marriage Protection Amendment’. ciple was followed even when balancing valid to all intents and purposes as part of ‘‘SECTION 2. Marriage in the United States the budget was the norm, because the the Constitution when ratified by the legis- shall consist only of the union of a man and U.S. Government always has borrowed latures of three-fourths of the several States a woman. Neither this Constitution, nor the when necessary to fight and win a war. within seven years after the date of its sub- constitution of any State, shall be construed Beyond that, we must keep all other mission by the Congress: to require that marriage or the legal inci- Federal spending under control, so that dents thereof be conferred upon any union ‘‘ARTICLE — other than the union of a man and a we return, as soon as possible, to bal- ‘‘SECTION 1. Total outlays for any fiscal woman.’’. ancing the budget. year shall not exceed total receipts for that In other words, the return to deficit fiscal year, unless three-fifths of the whole By Mr. CRAIG: spending will be a temporary problem number of each House of Congress shall pro- S.J. Res. 2. A joint resolution pro- only if we make a permanent commit- vide by law for a specific excess of outlays posing an amendment to the Constitu- ment to the moral imperative of fiscal over receipts by a rollcall vote. tion of the United States relative to re- responsibility. ‘‘SECTION 2. Total receipts shall include all quire a balanced budget and protect We always did, and always will, need receipts of the United States Government ex- cept those derived from borrowing. Total Social Security surpluses; to the Com- a balanced budget amendment to our outlays shall include all outlays of the mittee on the Judiciary. Constitution. United States Government except for those Mr. CRAIG. Mr. President, today I Even in the heady days of budget sur- for repayment of debt principal. am reintroducing the Balanced Budget pluses, I always maintained the only ‘‘SECTION 3. Any surplus of receipts (includ- Amendment to the Constitution of the way to guarantee that the Federal ing attributable interest) over outlays of the United States. When we were in deficit Government would stay fiscally re- Federal Old-Age and Survivors Insurance and and when we were in surplus, I have al- sponsible was to add a balanced budget the Federal Disability Insurance Trust ways said, if we could adopt one funda- amendment to the Constitution. Funds shall not be counted for purposes of mental reform to the way the Federal Before we balanced the budget in this article. Any deficit of receipts (includ- ing attributable interest) relative to outlays Government does business, this is it. 1998, the Government was deficit spend- of the Federal Old-Age and Survivors Insur- The fiscal events of the last few years ing for 28 years in a row and for 59 out ance and the Federal Disability Insurance have again demonstrated the need for of 67 years. The basic law of political Trust Funds shall be counted for purposes of this long-term, fundamental, perma- temptation—to just say ‘‘yes’’—was this article, and must be completely offset nent reform. not repealed in 1998, but only re- by a surplus of all other receipts over all For many Americans, one of the strained some, when we came together other outlays. signs of our deep respect for the Con- and briefly faced up to the great threat ‘‘SECTION 4. The limit on the debt of the stitution is our acknowledgment that, to the future posed by decades of debt. United States held by the public shall not be increased, unless three-fifths of the whole in exceptional cases, a problem rises to Now, the Government is back to bor- number of each House shall provide by law such a level that it can be adequately rowing. And for some, a return to def- for such an increase by a rollcall vote. addressed only in the Constitution—by icit spending seems to have been liber- ‘‘SECTION 5. Prior to each fiscal year, the way of a constitutional amendment. ating, as the demands for new spending President shall transmit to the Congress a From 1998 through 2001, Congress bal- only seem to be multiplying again. proposed budget for the United States Gov- anced the Federal budget. These four That is why, today, I am again intro- ernment for that fiscal year, in which total budget surpluses in a row, for the first ducing a balanced budget amendment outlays do not exceed total receipts. time since the 1920s, set the modern to the Constitution and calling upon ‘‘SECTION 6. No bill to increase revenue shall become law unless approved by a ma- record for balancing the Federal budg- my colleagues to send it to the States jority of the whole number of each House by et. The first Republican Congresses in for ratification. a rollcall vote. 40 years made balancing the budget our The amendment I introduce today is ‘‘SECTION 7. The Congress may waive the top priority, and did what was nec- the same one I sponsored in the 108th provisions of this article for any fiscal year

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RES. 8 twice as likely to attend college as stu- causes an imminent and serious military threat to national security and is so declared Whereas public investment in higher edu- dents from families with incomes of by a joint resolution, adopted by a majority cation yields a return of several dollars for less that $25,000. of the whole number of each House, which each dollar invested; Even more unsettling are studies becomes law. Whereas higher education promotes eco- demonstrating the negative effect of ‘‘SECTION 8. The Congress shall enforce and nomic opportunity and recipients of bach- unmet financial need on college at- implement this article by appropriate legis- elor’s degrees earn 73 percent more in life- tendance for even the most academi- lation, which may rely on estimates of out- time earnings than those with only a sec- ondary school diploma and are also signifi- cally prepared students. Among the lays and receipts. most highly qualified high school stu- ‘‘SECTION 9. This article shall take effect cantly less likely to be unemployed; the second fiscal year beginning after its Whereas access to a college education has dents, those from low-income families ratification.’’. become a hallmark of American society, and were 43 percent less likely to attend is vital to upholding our belief in equality of college than their wealthier counter- f opportunity; parts. SUBMITTED RESOLUTIONS Whereas for a generation, the Federal Pell To help remedy these inequities, the Grant has served as an established and effec- Federal Government has wisely in- tive means of providing access to higher edu- vested in a need-based system of stu- cation; SENATE RESOLUTION 7—RELATING Whereas when viewed in constant dollars, dent financial aid designed to help re- TO THE DEATH OF HOWARD S. the value of today’s Pell Grant maximum move the economic barriers to higher LIEBENGOOD, FORMER SER- award has actually declined by 16 percent education. Central to this effort over GEANT AT ARMS OF THE SEN- since the mid 1970s; the past 30 years has been the Pell ATE Whereas grant aid as a portion of student grant program. This program was de- aid has fallen significantly in the past 30 signed as the cornerstone of Federal Mr. FRIST (for himself, Mr. ALEX- years; ANDER, Mr. DOMENICI, Mr. COCHRAN, Mr. student assistance. Whereas in 1975, grant aid constituted ap- Unfortunately, the purchasing power HAGEL, Mr. WARNER, Mr. BIDEN, Mr. proximately 80 percent of total student aid of the Pell grant has been significantly HATCH, Mr. KENNEDY, Mr. DODD, and awarded to college students and loans con- eroded in recent years, forcing students Mr. GRAHAM) submitted the following stituted only 17 percent, now this has re- resolution; which was considered and versed with grants making up only 38 per- to rely increasingly on loans to finance agreed to: cent, and loans covering 56 percent of total their higher education. In 1975, the student aid; and maximum Pell grant covered approxi- S. RES. 7 Whereas the increasing reliance on bor- mately 80 percent of the costs of at- Whereas Howard S. Liebengood served as a rowing to finance a higher education is par- tending a public, 4–year institution. captain in the United States Army Military ticularly burdensome on low-income families Today, it covers less than half of these Police Corps in Vietnam from 1968 to 1970, re- and has negative consequences for the enroll- costs, forcing students to make up the ceiving the Bronze Star and the Army Com- ment of these students. mendation Medal for his exemplary service; Now, therefore, be it difference by taking on larger and larg- Whereas Howard S. Liebengood began his Resolved, That it is the sense of the Senate er amounts of debt. On average, stu- service to the Senate in 1973 as minority that— dents from the University of Maine counsel to the Senate Watergate Committee; (1) the maximum Federal Pell Grant for graduate with approximately $18,000 in Whereas Howard S. Liebengood served as which a student should be eligible during debt from Federal student loans alone, an aide to the Senate Church Committee in award year 2005–2006 should be $4,500; and and this reflects national trends. As 1975, as the minority staff director of the (2) the authorized levels for the Federal startling as this figure is, it does not Senate Select Committee on Intelligence in Pell Grant maximum amount found in sec- 1976, and as legislative counsel to Senate Ma- tion 401 of the Higher Education Act of 1965 include additional indebtedness that jority Leader Howard H. Baker, Jr., in 1980; (20 U.S.C. 1070a) should be set high enough to many students incur through private Whereas Howard S. Liebengood served as accommodate a Federal Pell Grant amount loans or credit card debt to finance Sergeant at Arms of the Senate from 1981 to of $9,000 by award year 2010–2011. their education. 1983; Ms. COLLINS. Mr. President, I rise The decline in the value of grant aid Whereas Howard S. Liebengood served as today to introduce the first piece of and the growing reliance on loans bring chief of staff to Senator Fred Thompson legislation that I will sponsor in the other negative consequences. The stag- from 2001 to 2003, and as chief of staff to Sen- gering amount of loans can force some ate Majority Leader William H. Frist, M.D., 109th Congress—a resolution calling on from 2003 until his death in January, 2005; the Senate to strengthen the Pell grant students to abandon their plans to at- Whereas Howard S. Liebengood was a car- program so that more families can af- tend college altogether. According to ing and devoted husband, father, and col- ford higher education. the College Board, low-income families league who served with the utmost humility The Pell grant program is the single are significantly less willing, by al- and distinction and was admired and re- largest source of grant aid for postsec- most 50 percent, to finance a college spected by all as a teacher, adviser, and ondary education funded by the Fed- education through borrowed money friend; and eral Government. It provides grants to than their wealthier counterparts. Whereas Howard S. Liebengood inspired students based on their level of finan- That does not surprise me. Many others through his personal leadership, gen- working families in Maine are com- erosity, and great love for the United States: cial need to support their studies at Now, therefore, be it the institutions they have chosen to mitted to living within their means. Resolved, That— attend. For this fiscal year, the Pell Understandably, they are extremely (1) the Senate has heard with profound sor- program is funded at $12.8 billion and is wary of the staggering amount of debt row and deep regret the announcement of the estimated to serve more than 5.3 mil- that is now required to finance a col- death of Howard S. Liebengood; and lion students. lege education. (2) the Secretary of the Senate commu- I am pleased to have Senator FEIN- I also know this to be true from my nicate these resolutions to the House of Rep- GOLD and Senator COLEMAN joining me experiences as a college administrator resentatives and transmit an enrolled copy in this bipartisan effort to marshal ad- at Husson College in Maine. At Husson, of these resolutions to the family of Howard S. Liebengood. ditional Federal resources for the Pell 85 to 90 percent of students currently program. They each have been a leader receive some sort of Federal financial in the effort to expand access to higher aid, and approximately 60 percent of SENATE RESOLUTION 8—EXPRESS- education. students receive Pell grants. ING THE SENSE OF THE SENATE Our system of higher education is in As Linda Conant, the financial aid di- REGARDING THE MAXIMUM many ways the envy of the world, but rector at Husson told me, ‘‘You cannot AMOUNT OF A FEDERAL PELL its benefits have not been equally imagine how difficult it is to sit with a GRANT available. Unfortunately, it is still the family and to explain to them the Ms. COLLINS (for herself, Mr. FEIN- case that one of the most determina- amount of loans that are needed to fi- GOLD, and Mr. COLEMAN) submitted the tive factors of whether students will nance a post-secondary degree. It

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Judy lives in Castle Hill, tion, it is my hope that this resolution leges and universities, supports the passage not far from my home town of Caribou. will prompt a discussion about the of the Collins-Feingold resolution to in- Her daughter and son both were able to need for the maximum grant to grow. crease the Pell Grant maximum award to attend college with the help of Pell I know that my good friends Senator $4,500 in the 2005–06 award year, and to dou- grants. As she told me, ‘‘At the time, ble the maximum over the next 5 years. We ENZI, the new chairman of the Senate my husband Maylen was farming and urge the Senate to adopt this legislation, HELP Committee; Senator KENNEDY, having a rough go of it and I was a which paves the way toward achieving in- the ranking member; Senator ALEX- teacher and didn’t make much. But the creased support for students seeking to fi- ANDER, the chairman of the new Edu- nance a college education. Pell grants my children received made cation and Early Childhood Develop- The Pell Grant program is one of the most it possible for them to graduate, one ment Subcommittee; and his Demo- successful programs that the federal govern- from the University of New England cratic counterpart will all work hard ment has ever initiated. It has financed the and one from Thomas College. Without education of millions of college students who with other committee members to these grants, they couldn’t have fin- are now contributing members of society— produce a strong reauthorization bill. I ished and now they are making good doctors, teachers, mayors, and members of look forward to working with them fur- wages and paying taxes!’’ Congress. It is rooted in the abiding Amer- Judy couldn’t be more right on both ther; they are all champions of ensur- ican value that one’s aspirations—not one’s ing greater access to quality education income—should determine the shape of one’s counts. Not only can the typical bach- future. elor’s degree recipient expect to earn for all Americans, regardless of their financial means. Increasing the Pell Grant maximum award about 73 percent more over a lifetime by $450 is vitally important to the millions than a high school graduate, they also The President also has recently an- of college students who have seen no in- typically contribute 100 percent more nounced his intention to include a pro- crease in their grants for the past three in Federal income taxes than the aver- posal in his 2006 budget request to years in a row. During this period, the col- age high school graduate. So this is eliminate the Pell shortfall and to pro- lege-age population has continued to expand, truly a Federal investment that pays vide an increase in the maximum grant states have been cutting their investments in higher education, and family savings have for itself over the long run. of $100 for each of the next 5 years. I commend the President for focusing on been diminished by economic losses. Increas- We also know that having a well-edu- ing the Pell Grant maximum award is an es- cated workforce is crucial to our eco- Pell grants, and I hope that we can sential and necessary component of keeping nomic future and competitiveness in work together to provide a more sub- college possible for these students. the global economy. The Bureau of stantial increase for the maximum Passage of the Collins-Feingold resolution Labor Statistics has projected that grant for the upcoming year. An in- will signal Congress’ interest in and support over the next 10 years, there will be crease of approximately $100 for each of of America’s neediest students. We encour- significant growth in jobs requiring at the next 5 years will not be enough to age you to support this important legisla- tion. least some post-secondary education. increase the purchasing power of Pell grants and will not keep pace with in- Sincerely, So increasingly, higher education is DAVID WARD, going to be necessary to ensure em- flation or rising tuition costs. For 2004– Co-Chair. ployability and to prepare Americans 2005, the average costs of tuition and DAVID WARREN, to participate in tomorrow’s economy. fees for a public, 4-year institution rose Co-Chair. Pell grants make the difference in by over 10 percent. There being no objection, the mate- whether students have access to higher I will ask unanimous consent to have rial was ordered to be printed in the education, and a chance to participate a letter of support for my legislation RECORD, as follows: fully in the American dream. That is printed in the RECORD. This letter is 2005 LIST OF MEMBERS why today I am introducing a resolu- from the Student Aid Alliance, a coali- American Association for Higher Edu- tion calling on the Senate to begin re- tion of more than 60 organizations rep- cation storing the value of the Pell grant pro- resenting students, colleges and uni- American Association of Colleges for gram. versities. Founded by the American Teacher Education American Association of Colleges of Nurs- This resolution calls on the Senate to Council on Education and the National raise the Pell maximum grant award to ing Association of Independent Colleges American Association of Colleges of Phar- $4,500, a $450 increase in a single year. and Universities, the Student Aid Alli- macy This increase is long overdue. The max- ance includes members such as the American Association of Collegiate Reg- imum grant award has been essentially American Association of Community istrars and Admissions Officers level-funded for 4 straight years—at Colleges, the American Association of American Association of Community Col- $4,050 for the past 3 years and only a $50 State Colleges and Universities, and leges American Dental Education Association increase in FY 2002. the National Association of Student During these 4 years, think of the American Association of State Colleges Financial Aid Administrators, to name and Universities students who might have entered col- just a few. I am pleased to have their American Association of University Pro- lege and graduated with a degree, if support. fessors only they had received additional Pell Mr. President, now is the time for us American College Personnel Association grant aid. Pell grants are targeted to American College Testing to make a commitment to raising the the neediest of students—recipients American Council on Education Pell maximum award to $4,500 for the have a median family income of only American Indian Higher Education Consor- upcoming award year. The Pell grant $15,200. An additional $450 in Pell grant tium program is the foundation of making American Jewish Congress aid may very well be the deciding fac- good on the American promise of ac- American Psychological Association tor on whether these students can pur- cess to higher education. I hope that American Society for Engineering Edu- sue their college dreams. my colleagues will join me in sup- cation The resolution also calls on the Sen- American Student Association of Commu- porting this resolution. ate to amend the Higher Education Act nity Colleges to provide higher authorization levels I ask unanimous consent to have the APPA: The Association of Higher Edu- for the Pell maximum grant that would letter to which I referred printed in the cation Facilities Officers RECORD. Association of Academic Health Centers allow for a doubling of the maximum Association of Advanced Rabbinical and grant to $9,000 over the next 5 years. There being no objection, the letter Talmudic Schools This is an ambitious goal but a worthy was ordered to be printed in the Association of American Colleges and Uni- one for a nation that understands the RECORD, as follows: versities

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00262 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — SENATE S369 Association of American Law Schools which our Nation continues to rely in these Whereas 3 days later, Emmett Till’s de- Association of American Medical Colleges perilous and challenging times: Now, there- composed corpse was pulled from the Association of American Universities fore, be it Tallahatchie River; Association of Catholic Colleges and Uni- Resolved, That it is the sense of the Sen- Whereas Emmett’s mother, Mamie Till, versities ate— made the extraordinary decision to leave the Association of Community College Trust- (1) that the month of November should be casket open at her son’s funeral in Chicago, ees designated as ‘‘National Military Family in order to allow the world to see the bru- Association of Governing Boards of Univer- Month’’; and tality of the crime perpetrated against her sities and Colleges (2) to request that the President— son; Association of Jesuit Colleges and Univer- (A) designate the month of November as Whereas tens of thousands of people viewed sities ‘‘National Military Family Month’’; and Emmett Till’s body in a Chicago church for Citizen’s Scholarship Foundation of (B) issue a proclamation calling upon the 4 days; and press from around the world pub- Arnerica people of the United States to observe the lished photographs of Emmett’s maimed Coalition of Higher Education Assistance month with appropriate ceremonies and ac- face; and the sheer brutality of his murder Organizations tivities. became international news that highlighted College and University Personnel Associa- Mr. INOUYE. Mr. President, today I the violent racism of the Jim Crow South; tion for Human Resources Whereas Jet Magazine and the Chicago De- rise to honor all our military families fender published photographs of Emmett College Board by introducing a Resolution to des- College Parents of America Till’s body outraging African-Americans Council for Advancement and Support of ignate November as National Military around the United States; Education Family Month. As we all know, memo- Whereas the trial of J.W. Milam and Roy Council for Christian Colleges and Univer- ries fade and the hardships experienced Bryant began in September of that year with sities by our military families are easily for- an all-male, all-White jury, because African- Council for Higher Education Accredita- gotten unless they touch our own im- Americans and women were banned from serving; tion mediate family. Council of Graduate Schools Whereas the trial of Milam and Bryant was Today, we have our men and women a microcosm of the Jim Crow South: Afri- Council of Independent Colleges deployed all over the world, engaged in Council for Opportunity in Education can-Americans were packed in a specific sec- Educational Testing Service this war on terrorism. These far-rang- tion of the courtroom balcony; the defend- Hispanic Association of Colleges and Uni- ing military deployments are ex- ants’ families were seen laughing and joking versities tremely difficult on the families who with the prosecution and the jury; and food Lutheran Educational Conference of North bear this heavy burden. and snacks were passed out to White observ- America To honor these families, the Armed ers; NAFSA: Association of International Edu- Whereas Moses Wright did the unthinkable Services YMCA has sponsored Military as an African-American and openly accused cators Family Week in late November since National Association for College Admis- the White defendants in public court of mur- 1996. However, due to frequent ‘‘short dering his nephew; sion Counseling Whereas Moses Wright was run out of town National Association for Equal Oppor- week’’ conflicts around the Thanks- for his actions in court; tunity in Higher Education giving holidays, the designated week Whereas J.W. Milam and Roy Bryant were National Association of College and Uni- has not always afforded enough time to acquitted of the murder of Emmett Till, and versity Business Officers schedule observance on and near our Bryant celebrated his acquittal with his wife National Association of Graduate and Pro- military bases. in front of the cameras; fessional Students I believe a month long observation Whereas protected from further prosecu- National Association of Independent Col- will allow greater opportunity to plan tion, Milam and Bryant candidly confessed leges and Universities events. Moreover, it will provide a their torture and murder of Emmett Till; National Association of State Student Milam did so on the record to Look Magazine Grant and Aid Programs greater opportunity to stimulate media support. for $4,000; National Association of State Universities Whereas Mamie Till and thousands of oth- and Land-Grant Colleges A resolution will help pave the way for this effort. I ask my colleagues to ers pleaded with the Department of Justice National Association of Student Financial and the Federal Bureau of Investigation to Aid Administrators join me in supporting this tribute to reopen and investigate the case; National Association of Student Personnel our military families. Whereas the Federal Government did abso- Administrators lutely nothing, and President Eisenhower National College Access Network SENATE CONCURRENT RESOLU- and FBI Director J. Edgar Hoover refused to National Collegiate Athletic Association TION 3—EXPRESSING THE SENSE reopen the case and did not even answer National Council for Community and Edu- Mamie Till’s urgent telegraph; cation Partnerships OF THE CONGRESS WITH RE- SPECT TO THE MURDER OF EM- Whereas 100 days later, Rosa Parks refused National Council of University Research to give up her bus seat to a White patron and Administrators METT TILL the modern civil rights revolution began; National Education Association Mr. SCHUMER (for himself and Mr. Whereas many historians regard the mur- NAWE: Advancing Women in Higher Edu- TALENT) submitted the following con- der of Emmett Till as the true spark of the cation civil rights movement; The Council on Government Relations current resolution; which was referred to the Committee on the Judiciary: Whereas Mamie Till, who died on January United Negro College Fund 6, 2003, moved back to Chicago, taught, and United States Public Interest Research S. CON. RES. 3 continued to talk about her son Emmett’s Group Whereas Emmett Till was born in Chicago, murder; and expressed her wishes for a full United States Student Association Illinois, at Cook County Hospital, on July 25, Federal investigation; University Continuing Education Associa- 1941, to Mamie and Louis Till; Whereas more than 48 years have passed tion Whereas Emmett Till traveled to Money, since the murder of Emmett Till; Women’s College Coalition Mississippi, to spend the summer with his Whereas the remaining witnesses to this uncle, Moses Wright, and his relatives; gruesome crime are elderly; SENATE RESOLUTION 9—EXPRESS- Whereas in August 1955, 14-year-old Em- Whereas House Concurrent Resolution 360 ING THE SENSE OF THE SENATE mett Till—with adolescent flamboyance, but entitled ‘‘Expressing the sense of Congress REGARDING DESIGNATION OF unfamiliarity of the racial customs of the with respect to the murder of Emmett Till’’, THE MONTH OF NOVEMBER AS South—allegedly whistled at Carolyn Bry- was introduced on February 10, 2004, by Rep- ant, a White woman; ‘‘NATIONAL MILITARY FAMILY resentative Bobby Rush; Whereas on August 28, at about 2:30 a.m., Whereas the Department of Justice re- MONTH’’ Roy Bryant, Carolyn Bryant’s husband, and opened the investigation into the murder of Mr. INOUYE submitted the following his half brother, J.W. Milam, kidnaped Em- Emmett Till on May 11, 2004; and resolution; which was referred to the mett Till from his uncle Moses Wright’s Whereas Congress supports the decision to Committee on the Judiciary: home; reopen the investigation of the murder of Whereas Bryant and Milam brutally beat Emmett Till: Now, therefore, be it S. RES. 9 Emmett Till, took him to the edge of the Resolved by the Senate (the House of Rep- Whereas military families, through their Tallahatchie River, shot him in the head, resentatives concurring), That Congress— sacrifices and their dedication to our Nation fastened a large metal fan used for ginning (1) calls on all authorities with jurisdic- and its values, represent the bedrock upon cotton to his neck with barbed wire, and tion, including the Department of Justice which our Nation was founded and upon pushed the body into the river; and the State of Mississippi, to—

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00263 Fmt 0637 Sfmt 0634 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE S370 CONGRESSIONAL RECORD — SENATE January 24, 2005 (A) expeditiously bring those responsible The hearing will take place in room DEPARTMENT OF AGRICULTURE for the murder of Emmett Till to justice, due 418 of the Russell Senate Office Build- THOMAS C. DORR, OF IOWA, TO BE UNDER SECRETARY to the amount of time that has passed since ing at 10:00 A.M. OF AGRICULTURE FOR RURAL DEVELOPMENT, VICE JILL the murder and the age of the witnesses; and L. LONG, RESIGNED. A markup on Mr. Nicholson’s nomi- THOMAS C. DORR, OF IOWA, TO BE A MEMBER OF THE (B) provide all the resources necessary to BOARD OF DIRECTORS OF THE COMMODITY CREDIT COR- ensure a timely and thorough investigation; nation will take place in room 418 of PORATION, VICE JILL L. LONG, RESIGNED. and the Russell Senate Office Building at DEPARTMENT OF DEFENSE 2:00 P.M. (2) calls on the Department of Justice to PETER CYRIL WYCHE FLORY, OF VIRGINIA, TO BE AN fully report the findings of their investiga- The PRESIDING OFFICER. Without ASSISTANT SECRETARY OF DEFENSE, VICE JACK DYER tion to Congress. objection, it is so ordered. CROUCH, II. JOHN PAUL WOODLEY, JR., OF VIRGINIA, TO BE AN AS- f f SISTANT SECRETARY OF THE ARMY, VICE MICHAEL PARKER. NOTICES OF HEARINGS/MEETINGS ORDERS FOR TUESDAY, JANUARY BUDDIE J. PENN, OF VIRGINIA, TO BE AN ASSISTANT SECRETARY OF THE NAVY, VICE H. T. JOHNSON. COMMITTEE ON INDIAN AFFAIRS 25, 2005 NATIONAL SECURITY EDUCATION BOARD Mr. MCCAIN. Mr. President, I would Mr. FRIST. Mr. President, I ask ANDREW J. MCKENNA, JR., OF ILLINOIS, TO BE A MEM- like to announce that the Committee unanimous consent that when the Sen- BER OF THE NATIONAL SECURITY EDUCATION BOARD on Indian Affairs will meet on Wednes- FOR A TERM OF FOUR YEARS, VICE ROBERT N. ate completes its business today, it ad- SHAMANSKY, TERM EXPIRED. day, January 26, 2005, at 10:30 a.m. in journ until 9:45 a.m. on Tuesday, Janu- GEORGE M. DENNISON, OF MONTANA, TO BE A MEMBER room 485 of the Russell Senate Office OF THE NATIONAL SECURITY EDUCATION BOARD FOR A ary 25. I further ask that following the TERM OF FOUR YEARS, VICE BRUCE SUNDLUN, TERM EX- Building to conduct a business meeting prayer and pledge, the morning hour be PIRED. to consider the Committee budget reso- JAMES WILLIAM CARR, OF ARKANSAS, TO BE A MEM- deemed expired, the Journal of pro- BER OF THE NATIONAL SECURITY EDUCATION BOARD lution and proposed changes to the ceedings be approved to date, the time FOR A TERM OF FOUR YEARS, VICE MANUEL TRINIDAD Committee rules and any other organi- for the two leaders be reserved, and PACHECO, TERM EXPIRED. zational business the committee needs there then be a period of morning busi- DEPARTMENT OF HOUSING AND URBAN to attend to. ness for up to 60 minutes with the first DEVELOPMENT Those wishing additional information PAMELA HUGHES PATENAUDE, OF NEW HAMPSHIRE, TO half of the time under the control of BE AN ASSISTANT SECRETARY OF HOUSING AND URBAN may contact the Indian Affairs Com- the majority leader or his designee and DEVELOPMENT, VICE ROMOLO A. BERNARDI. mittee at 224–2251. the remaining time under the control FEDERAL HOUSING FINANCE BOARD SUBCOMMITTEE ON PUBLIC LANDS AND FORESTS of the Democratic leader or his des- RONALD ROSENFELD, OF OKLAHOMA, TO BE A DIREC- Mr. MCCAIN. Mr. President, I would ignee; provided that following morning TOR OF THE FEDERAL HOUSING FINANCE BOARD FOR THE REMAINDER OF THE TERM EXPIRING FEBRUARY 27, like to announce for the information of business, the Senate proceed to execu- 2009, VICE JOHN THOMAS KORSMO, RESIGNED. the Senate and the public that an over- tive session as provided under the pre- NATIONAL INSTITUTE OF BUILDING SCIENCES sight hearing has been scheduled before vious order. WILLIAM HARDIMAN, OF MICHIGAN, TO BE A MEMBER the Subcommittee on Public Lands and I further ask consent that the Senate OF THE BOARD OF DIRECTORS OF THE NATIONAL INSTI- TUTE OF BUILDING SCIENCES FOR A TERM EXPIRING Forests of the Committee on Energy recess tomorrow from 12:30 p.m. until SEPTEMBER 7, 2006, VICE H. TERRY RASCO, TERM EX- and Natural Resources. 2:15 for the weekly party lunches. PIRED. The hearing will be held on Tuesday, The PRESIDING OFFICER. Without REFORM BOARD (AMTRAK) February 8, 2005, at 10 a.m. in room SD– objection, it is so ordered. FLOYD HALL, OF NEW JERSEY, TO BE A MEMBER OF THE REFORM BOARD (AMTRAK) FOR A TERM OF FIVE 366 of the Dirksen Senate Office Build- f ing. YEARS, VICE AMY M. ROSEN, TERM EXPIRED. The purpose of the hearing is to re- PROGRAM AMTRAK view the implementation of Titles I ENRIQUE J. SOSA, OF FLORIDA, TO BE A MEMBER OF Mr. FRIST. Tomorrow, following THE REFORM BOARD (AMTRAK) FOR A TERM OF FIVE through III of P.L. 106–393, the Secure morning business, the Senate will YEARS, VICE LINWOOD HOLTON, TERM EXPIRED. Rural Schools and Community Self-De- begin debate on the nomination of ENVIRONMENTAL PROTECTION AGENCY termination Act of 2000. Condoleeza Rice to be Secretary of THOMAS V. SKINNER, OF ILLINOIS, TO BE AN ASSIST- Because of the limited time available State. Under the order, there will be up ANT ADMINISTRATOR OF THE ENVIRONMENTAL PROTEC- TION AGENCY, VICE JOHN PETER SUAREZ, RESIGNED. for the hearing, witnesses may testify to 9 hours of debate on the nomination LUIS LUNA, OF MARYLAND, TO BE AN ASSISTANT AD- by invitation only. However, those during tomorrow’s session with a short MINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY, VICE MORRIS X. WINN. wishing to submit written testimony period of additional debate on Wednes- MISSISSIPPI RIVER COMMISSION for the hearing record should sent two day, prior to a vote on confirmation. In MAJOR GENERAL DON T. RILEY, UNITED STATES copies of their testimony to the Com- addition, the nomination of Jim Nich- ARMY, TO BE A MEMBER AND PRESIDENT OF THE MIS- mittee on Energy and Natural Re- olson to be Secretary of Veterans Af- SISSIPPI RIVER COMMISSION. sources, United States Senate, Wash- fairs was reported today. The Senate MORRIS K. UDALL SCHOLARSHIP AND EXCEL- ington, DC 20510–6150. may act on that nomination and any LENCE IN NATIONAL ENVIRONMENTAL POLICY For further information, please con- other nomination that is available dur- FOUNDATION tact Frank M. Gladics at 202–224–2878 or ing the remainder of this week. D. MICHAEL RAPPOPORT, OF ARIZONA, TO BE A MEM- BER OF THE BOARD OF TRUSTEES OF THE MORRIS K. Amy Millet at 202–224–8276. We are working across the aisle to- UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL COMMITTEE ON AGRICULTURE, NUTRITION, AND gether, at the committee level and the ENVIRONMENTAL POLICY FOUNDATION FOR A TERM EX- PIRING OCTOBER 6, 2008. (REAPPOINTMENT) FORESTRY floor level, to consider these nomina- MORRIS K. UDALL SCHOLARSHIP AND EXCEL- Mr. President, I announce that the tions just as soon as they are made LENCE IN NATIONAL ENVIRONMENTAL POLICY Committee on Agriculture, Nutrition, available. FOUNDATION and Forestry will conduct a business f MICHAEL BUTLER, OF TENNESSEE, TO BE A MEMBER meeting on January 26, 2005 in SR–332 OF THE BOARD OF TRUSTEES OF THE MORRIS K. UDALL at 10 a.m. The purpose of this meeting ADJOURNMENT UNTIL 9:45 A.M. SCHOLARSHIP AND EXCELLENCE IN NATIONAL ENVIRON- TOMORROW MENTAL POLICY FOUNDATION FOR A TERM EXPIRING will be to discuss the organization of OCTOBER 6, 2008, VICE ERIC D. EBERHARD, TERM EX- the Committee for the 109th Congress. Mr. FRIST. Mr. President, if there is PIRED. f no further business to come before the DEPARTMENT OF THE TREASURY Senate, I ask unanimous consent that RAYMOND THOMAS WAGNER, JR., OF MISSOURI, TO BE AUTHORITY FOR COMMITTEES TO the Senate stand in adjournment under A MEMBER OF THE INTERNAL REVENUE SERVICE OVER- MEET SIGHT BOARD FOR A TERM EXPIRING SEPTEMBER 14, the previous order, as a further mark 2009. (REAPPOINTMENT) COMMITTEE ON VETERANS’ AFFAIRS HAROLD DAMELIN, OF VIRGINIA, TO BE INSPECTOR of respect for Howard S. Liebengood. GENERAL, DEPARTMENT OF THE TREASURY, VICE JEF- Mr. STEVENS. Mr. President, I ask There being no objection, the Senate, FREY RUSH, JR., RESIGNED. unanimous consent that the Com- at 7:16 p.m. adjourned until Tuesday, DEPARTMENT OF HEALTH AND HUMAN SERVICES mittee on Veterans’ Affairs be author- January 25, 2005, at 9:45 a.m. DANIEL R. LEVINSON, OF MARYLAND, TO BE INSPEC- ized to meet during the session of the f TOR GENERAL, DEPARTMENT OF HEALTH AND HUMAN Senate on Monday, January 24, 2005, for SERVICES, VICE JANET REHNQUIST, RESIGNED. a hearing to consider the nomination NOMINATIONS DEPARTMENT OF STATE of: Mr. R. James Nicholson to be Sec- Executive nominations received by HOWARD J. KRONGARD, OF NEW JERSEY, TO BE IN- SPECTOR GENERAL, DEPARTMENT OF STATE, VICE retary of Veterans’ Affairs. the Senate January 24, 2005: CLARK KENT ERVIN.

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INTER-AMERICAN FOUNDATION BERNICE PHILLIPS, OF NEW YORK, TO BE A MEMBER OF CAREER MEMBER OF THE SENIOR FOREIGN SERVICE THE BOARD OF DIRECTORS OF THE LEGAL SERVICES OF THE UNITED STATES OF AMERICA, CLASS OF CA- NADINE HOGAN, OF FLORIDA, TO BE A MEMBER OF THE CORPORATION FOR A TERM EXPIRING JULY 13, 2005, VICE REER-MINISTER: BOARD OF DIRECTORS OF THE INTER-AMERICAN FOUN- MARIA LUISA MERCADO, TERM EXPIRED. DATION FOR A TERM EXPIRING JUNE 26, 2008, VICE FRANK DONALD B. CLARK, OF NEW HAMPSHIRE D. YTURRIA, TERM EXPIRED. JAMES MADISON MEMORIAL FELLOWSHIP WALTER E. NORTH, OF WASHINGTON FOUNDATION CARLOS PASCUAL, OF THE DISTRICT OF COLUMBIA BROADCASTING BOARD OF GOVERNORS GEORGE PERDUE, OF GEORGIA, TO BE A MEMBER OF CAREER MEMBER OF THE SENIOR FOREIGN SERVICE KENNETH Y. TOMLINSON, OF VIRGINIA, TO BE CHAIR- THE BOARD OF TRUSTEES OF THE JAMES MADISON ME- OF THE UNITED STATES OF AMERICA, CLASS OF MIN- MAN OF THE BROADCASTING BOARD OF GOVERNORS. MORIAL FELLOWSHIP FOUNDATION FOR A TERM EXPIR- ISTER-COUNSELOR: (REAPPOINTMENT) ING NOVEMBER 5, 2006, VICE CARROLL A. CAMPBELL, JR., OLIVER CHARLES CARDUNER, OF VIRGINIA D. JEFFREY HIRSCHBERG, OF WISCONSIN, TO BE A TERM EXPIRED. MEMBER OF THE BROADCASTING BOARD OF GOVERNORS SHARON CROMER, OF THE DISTRICT OF COLUMBIA FOR A TERM EXPIRING AUGUST 13, 2007. (REAPPOINT- NATIONAL LABOR RELATIONS BOARD DAVID ECKERSON, OF WASHINGTON MENT) WILLIAM JOHN GRAVELINK, OF VIRGINIA RONALD E. MEISBURG, OF VIRGINIA, TO BE A MEMBER KENNETH Y. TOMLINSON, OF VIRGINIA, TO BE A MEM- JAMES R. KIRKLAND, OF TENNESSEE OF THE NATIONAL LABOR RELATIONS BOARD FOR THE BER OF THE BROADCASTING BOARD OF GOVERNORS FOR MARY CATHERINE OTT, OF MARYLAND TERM OF FIVE YEARS EXPIRING AUGUST 27, 2008, VICE A TERM EXPIRING AUGUST 13, 2007. (REAPPOINTMENT) ANDREW B. SISSON, OF NEW YORK RENE ACOSTA, RESIGNED. JAMES THOMPSON SMITH, JR., OF VIRGINIA EXECUTIVE OFFICE OF THE PRESIDENT NATIONAL SECURITY EDUCATION BOARD JAMES STEPHENSON, OF VIRGINIA DIANE SWAIN, OF VIRGINIA JORGE A. PLASENCIA, OF FLORIDA, TO BE A MEMBER KIRON KANINA SKINNER, OF PENNSYLVANIA, TO BE A LOUISE B. WISE, OF VIRGINIA OF THE ADVISORY BOARD FOR CUBA BROADCASTING MEMBER OF THE NATIONAL SECURITY EDUCATION STEVEN G. WISECARVER, OF VIRGINIA FOR A TERM EXPIRING OCTOBER 27, 2006, VICE JOSEPH BOARD FOR A TERM OF FOUR YEARS, VICE HERSCHELLE FRANCIS GLENNON, TERM EXPIRED. S. CHALLENOR. THE FOLLOWING-NAMED CAREER MEMBERS OF THE FOREIGN SERVICE OF THE AGENCY FOR INTERNATIONAL INTER-AMERICAN FOUNDATION BARRY GOLDWATER SCHOLARSHIP & DEVELOPMENT FOR PROMOTION INTO THE SENIOR FOR- ROGER W. WALLACE, OF TEXAS, TO BE A MEMBER OF EXCELLENCE IN EDUCATION FOUNDATION EIGN SERVICE TO THE CLASS INDICATED: THE BOARD OF DIRECTORS OF THE INTER-AMERICAN CAREER MEMBER OF THE SENIOR FOREIGN SERVICE FOUNDATION FOR A TERM EXPIRING OCTOBER 6, 2008, CHARLES P. RUCH, OF SOUTH DAKOTA, TO BE A MEM- OF THE UNITED STATES OF AMERICA, CLASS OF COUN- VICE FRED P. DUVAL. BER OF THE BOARD OF TRUSTEES OF THE BARRY GOLD- SELOR: JACK VAUGHN, OF TEXAS, TO BE A MEMBER OF THE WATER SCHOLARSHIP AND EXCELLENCE IN EDUCATION BOARD OF DIRECTORS OF THE INTER-AMERICAN FOUN- FOUNDATION FOR A TERM EXPIRING AUGUST 11, 2010, JAMES B. AHN, OF FLORIDA DATION FOR A TERM EXPIRING SEPTEMBER 20, 2006, VICE VICE NIRANJAN SHAMALBHAI SHAH, TERM EXPIRED. DAVID ADKINS ATWOOD, OF VIRGINIA PATRICIA HILL WILLIAMS, TERM EXPIRED. CORPORATION FOR NATIONAL AND COMMUNITY CAROL BECKER, OF MARYLAND JEFF BORNS, OF MARYLAND UNITED STATES ADVISORY COMMISSION ON SERVICE ROBERT STEPHEN BRENT, OF MARYLAND CLIFFORD H. BROWN, OF WASHINGTON PUBLIC DIPLOMACY EDWARD L. FLIPPEN, OF VIRGINIA, TO BE INSPECTOR LESLIE B. CURTIN, OF CONNECTICUT GENERAL, CORPORATION FOR NATIONAL AND COMMU- JAY T. SNYDER, OF NEW YORK, TO BE A MEMBER OF FRANCIS ALOYSIUS DONOVAN, OF MARYLAND NITY SERVICES, VICE J. RUSSELL GEORGE. THE UNITED STATES ADVISORY COMMISSION ON PUBLIC PATRICK CHILION FINE, OF NEW HAMPSHIRE DIPLOMACY FOR A TERM EXPIRING JULY 1, 2007. (RE- GENERAL SERVICES ADMINISTRATION KAREN L. FREEMAN, OF VIRGINIA APPOINTMENT) MICHAEL T. FRITZ, OF WYOMING BRIAN DAVID MILLER, OF VIRGINIA, TO BE INSPECTOR EARL W. GAST, OF CALIFORNIA DEPARTMENT OF STATE GENERAL, GENERAL SERVICES ADMINISTRATION, VICE RICHARD S. GREENE, OF VIRGINIA DANIEL R. LEVINSON. DAVID B. BALTON, OF THE DISTRICT OF COLUMBIA, WALTER M. KINDRED, OF VIRGINIA FOR THE RANK OF AMBASSADOR DURING HIS TENURE OF NATIONAL ARCHIVES AND RECORDS HENDERSON M. PATRICK, OF FLORIDA CARL ABDOU RAHMAAN, OF MARYLAND SERVICE AS DEPUTY ASSISTANT SECRETARY OF STATE ADMINISTRATION FOR OCEANS AND FISHERIES. (NEW POSITION) JAMES H. REDDER, OF NEW YORK JOSEPH R. DETRANI, OF VIRGINIA, FOR THE RANK OF ALLEN WEINSTEIN, OF MARYLAND, TO BE ARCHIVIST TIM C. RIEDLER, OF CALIFORNIA AMBASSADOR DURING HIS TENURE OF SERVICE AS SPE- OF THE UNITED STATES, VICE JOHN W. CARLIN. MONICA STEIN-OLSON, OF WASHINGTON CIAL ENVOY FOR THE SIX PARTY TALKS. (NEW POSI- LEON S. WASKINS, OF VIRGINIA TION) UNITED STATES POSTAL SERVICE ROBERT J. WILSON, OF CONNECTICUT JOHN THOMAS SCHIEFFER, OF TEXAS, TO BE AMBAS- CAROLYN L. GALLAGHER, OF TEXAS, TO BE A GOV- THE FOLLOWING-NAMED CAREER MEMBERS OF THE SADOR EXTRAORDINARY AND PLENIPOTENTIARY OF ERNOR OF THE UNITED STATES POSTAL SERVICE FOR SENIOR FOREIGN SERVICE OF THE DEPARTMENT OF AG- THE UNITED STATES OF AMERICA TO JAPAN. THE REMAINDER OF THE TERM EXPIRING DECEMBER 8, RICULTURE FOR PROMOTION WITHIN AND INTO THE SEN- DEPARTMENT OF EDUCATION 2009, VICE LOUIS J. GIULIANO, RESIGNED. IOR FOREIGN SERVICE TO THE CLASS INDICATED: LOUIS J. GIULIANO, OF NEW YORK, TO BE A GOVERNOR CAREER MEMBER OF THE SENIOR FOREIGN SERVICE, CRAIG T. RAMEY, OF WEST VIRGINIA, TO BE A MEMBER OF THE UNITED STATES POSTAL SERVICE FOR A TERM CLASS OF CAREER MINISTER: OF THE BOARD OF DIRECTORS OF THE NATIONAL BOARD EXPIRING DECEMBER 8, 2005, VICE CAROLYN L. GALLA- FOR EDUCATION SCIENCES FOR A TERM OF TWO YEARS. GHER. PETER FERNANDEZ, OF NEW YORK (NEW POSITION) POSTAL RATE COMMISSION FRANKLIN D. LEE, OF VIRGINIA KENNETH J. ROBERTS, OF MISSOURI NATIONAL MUSEUM AND LIBRARY SERVICES TONY HAMMOND, OF VIRGINIA, TO BE A COMMISSIONER CAREER MEMBER OF THE SENIOR FOREIGN SERVICE, BOARD OF THE POSTAL RATE COMMISSION FOR A TERM EXPIR- CLASS OF MINISTER COUNSELOR: A. WILSON GREENE, OF VIRGINIA, TO BE A MEMBER OF ING OCTOBER 14, 2010. (REAPPOINTMENT) THE NATIONAL MUSEUM AND LIBRARY SERVICES BOARD UNITED STATES POSTAL SERVICE MAURICE W. HOUSE, OF TENNESSEE FOR A TERM EXPIRING DECEMBER 6, 2009. (REAPPOINT- M. KATHRYN TING, OF FLORIDA MENT) LOUIS J. GIULIANO, OF NEW YORK, TO BE A GOVERNOR HOWARD R. WETZEL, OF VIRGINIA OF THE UNITED STATES POSTAL SERVICE FOR A TERM NATIONAL FOUNDATION ON THE ARTS AND THE EXPIRING DECEMBER 8, 2014. (REAPPOINTMENT) CAREER MEMBER OF THE SENIOR FOREIGN SERVICE, CLASS OF COUNSELOR: HUMANITIES DEPARTMENT OF JUSTICE CHARLES T. ALEXANDER, OF VIRGINIA HARRY ROBINSON, JR., OF TEXAS, TO BE A MEMBER OF STEPHEN THOMAS CONBOY, OF VIRGINIA, TO BE ELIZABETH B. BERRY, OF VIRGINIA THE NATIONAL MUSEUM SERVICES BOARD FOR A TERM UNITED STATES MARSHAL FOR THE SUPERIOR COURT OF LLOYD S. HARBERT, OF VIRGINIA EXPIRING DECEMBER 6, 2008. (REAPPOINTMENT) THE DISTRICT OF COLUMBIA FOR THE TERM OF FOUR ROSS G. KREAMER, OF VIRGINIA NATIONAL MUSEUM AND LIBRARY SERVICES YEARS, VICE TODD WALTHER DILLARD. BOARD FOREIGN CLAIMS SETTLEMENT COMMISSION f KATINA P. STRAUCH, OF SOUTH CAROLINA, TO BE A DAVID B. RIVKIN, JR., OF VIRGINIA, TO BE A MEMBER MEMBER OF THE NATIONAL MUSEUM AND LIBRARY OF THE FOREIGN CLAIMS SETTLEMENT COMMISSION OF CONFIRMATION SERVICES BOARD FOR A TERM EXPIRING DECEMBER 6, THE UNITED STATES FOR THE TERM EXPIRING SEP- 2009, VICE ELIZABETH J. PRUET, TERM EXPIRING. TEMBER 30, 2007, VICE LARAMIE FAITH MCNAMARA. Executive nomination confirmed by LEGAL SERVICES CORPORATION FOREIGN SERVICE the Senate Monday, January 24, 2005: THOMAS A. FUENTES, OF CALIFORNIA, TO BE A MEM- THE FOLLOWING-NAMED CAREER MEMBERS OF THE DEPARTMENT OF COMMERCE BER OF THE BOARD OF DIRECTORS OF THE LEGAL SERV- FOREIGN SERVICE OF THE AGENCY FOR INTERNATIONAL ICES CORPORATION FOR A TERM EXPIRING JULY 13, 2005, DEVELOPMENT FOR PROMOTION INTO THE SENIOR FOR- CARLOS M. GUTIERREZ, OF MICHIGAN, TO BE SEC- VICE THOMAS F. SMEGAL, JR., TERM EXPIRED. EIGN SERVICE TO THE CLASS INDICATED: RETARY OF COMMERCE.

VerDate Aug 31 2005 05:58 Dec 29, 2006 Jkt 059060 PO 00000 Frm 00265 Fmt 0637 Sfmt 9801 E:\RECORDCX\T37X$J0E\S24JA5.REC S24JA5 hmoore on PROD1PC68 with CONG-REC-ONLINE January 24, 2005 CONGRESSIONAL RECORD — Extensions of Remarks E51 EXTENSIONS OF REMARKS

SENATE COMMITTEE MEETINGS Homeland Security and Governmental Af- 2006 Department of Veterans Affairs fairs budget. Title IV of Senate Resolution 4, To hold hearings to examine the Depart- SR–418 agreed to by the Senate on February 4, ment of Homeland Security. 1977, calls for establishment of a sys- SD–342 MARCH 8 tem for a computerized schedule of all Aging 2 p.m. meetings and hearings of Senate com- To hold hearings to examine the risks Veterans’ Affairs mittees, subcommittees, joint commit- and benefits associated with Internet To hold hearings to examine legislative tees, and committees of conference. pharmacy and importation. presentation of the Disabled American This title requires all such committees SD–628 Veterans. to notify the Office of the Senate Daily 10:30 a.m. 345 CHOB Indian Affairs Digest—designated by the Rules com- Business meeting to consider Committee MARCH 9 mittee—of the time, place, and purpose budget resolution and proposed of the meetings, when scheduled, and 10 a.m. changes to the Committee rules. Veterans’ Affairs any cancellations or changes in the SR–485 To hold hearings to examine legislative meetings as they occur. 2:30 p.m. presentation of the Veterans of Foreign As an additional procedure along Intelligence Wars. with the computerization of this infor- To receive a closed briefing on certain SH–216 mation, the Office of the Senate Daily intelligence matters. Digest will prepare this information for SH–219 MARCH 10 10 a.m. printing in the Extensions of Remarks FEBRUARY 1 section of the CONGRESSIONAL RECORD Veterans’ Affairs 2:30 p.m. To hold hearings to examine legislative on Monday and Wednesday of each Judiciary week. presentations of the Blinded Veterans To hold hearings to examine certain Association, the Non-Commissioned Of- Meetings scheduled for Tuesday, Jan- issues relative to CIA document disclo- ficers Association, the Military Order uary 25, 2005 may be found in the Daily sure under the Nazi War Crimes Disclo- of the Purple Heart, the Paralyzed Vet- Digest of today’s RECORD. sure Act. erans of America and the Jewish War SD–226 MEETINGS SCHEDULED Veterans. 345 CHOB FEBRUARY 3 JANUARY 26 10 a.m. APRIL 14 9:15 a.m. Veterans’ Affairs 10 a.m. Environment and Public Works To hold hearings to examine benefits for Veterans’ Affairs Business meeting to consider pending survivors of those killed in the line of To hold hearings to examine legislative business. duty. presentations of the Military Officers SD–406 SR–418 Association of America, the National 9:30 a.m. 11 a.m. Association of State Director of Vet- Energy and Natural Resources Agriculture, Nutrition, and Forestry erans Affairs, AMVETS, the American Business meeting to consider pending To hold hearings to examine the effects Ex-Prisoners of War, and Vietnam Vet- calendar business. of Bovine Spongiform Encephalopathy erans of America. SD–366 (BSE) on United States imports and ex- 345 CHOB Judiciary ports of cattle and beef. Business meeting to continue consider- SD–106 APRIL 21 ation of the nomination of Alberto R. 10 a.m. Gonzales, of Texas, to be Attorney Gen- FEBRUARY 8 Veterans’ Affairs eral. 10 a.m. To hold hearings to examine legislative SD–226 Energy and Natural Resources presentations of the Fleet Reserve As- 10 a.m. Public Lands and Forests Subcommittee sociation, the Air Force Sergeants As- Agriculture, Nutrition, and Forestry To hold hearings to examine the imple- sociation, the Retired Enlisted Asso- Organizational business meeting to con- mentation of Titles I through III of ciation, and the Gold Star Wives of sider an original resolution authorizing P.L. 106–393, The Secure Rural Schools America. expenditures for committee operations, and Community Self-Determination 345 CHOB committee’s rules of procedure for the Act of 2000. 109th Congress, and subcommittee as- SD–366 SEPTEMBER 20 signments. SR–332 10 a.m. FEBRUARY 10 Environment and Public Works Veterans’ Affairs Clean Air, Climate Change, and Nuclear 9:30 a.m. To hold hearings to examine legislative Safety Subcommittee Armed Services presentation of the American Legion. To hold hearings to examine multi-emis- To hold hearings to examine the pro- 345 CHOB sions legislation. posed Defense Authorization Request for Fiscal Year 2006 and the Future SD–406 POSTPONEMENTS Banking, Housing, and Urban Affairs Years Defense Program. Organizational business meeting to con- SH–216 sider an original resolution authorizing JANUARY 26 expenditures for committee operations, FEBRUARY 15 9:30 a.m. committee’s rules of procedure for the 10 a.m. Judiciary 109th Congress, and subcommittee as- Veterans’ Affairs To hold hearings to examine pending ju- signments. To hold hearings to examine the dicial nominations. SD–538 Adminstration’s proposed fiscal year SD–226

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

VerDate jul 14 2003 01:35 Jan 25, 2005 Jkt 039060 PO 00000 Frm 00001 Fmt 0626 Sfmt 0634 E:\CR\FM\M24JA8.000 E24PT1 Monday, January 24, 2005 Daily Digest

HIGHLIGHTS Senate confirmed the nomination of Carlos M. Gutierrez, of Michigan, to be Secretary of Commerce. Senate Buddie J. Penn, of Virginia, to be an Assistant Chamber Action Secretary of the Navy. Routine Proceedings, pages S107–S371 Andrew J. McKenna, Jr., of Illinois, to be a Mem- Measures Introduced: One hundred-thirty bills and ber of the National Security Education Board for a six resolutions were introduced, as follows: S. 6, 9, term of four years. 11, 13–20, 24–25, 27, 29, 31–144, S.J. Res. 1–2, George M. Dennison, of Montana, to be a Mem- S. Res. 7–9, and S. Con. Res. 3. Pages S142–45 ber of the National Security Education Board for a Measures Passed: term of four years. James William Carr, of Arkansas, to be a Member Honoring Howard S. Liebengood: Senate agreed of the National Security Education Board for a term to S. Res. 7, relating to the death of Howard S. of four years. Liebengood, former Sergeant at Arms of the Senate. Pamela Hughes Patenaude, of New Hampshire, to Pages S107–09 be an Assistant Secretary of Housing and Urban De- Nomination—Agreement: A unanimous-consent- velopment. time agreement was reached providing for consider- Ronald Rosenfeld, of Oklahoma, to be a Director ation of the nomination of Condoleezza Rice, of Cali- of the Federal Housing Finance Board for the re- fornia, to be Secretary of State at 10:45 a.m., on mainder of the term expiring February 27, 2009. Tuesday, January 25, 2005, with nine hours for de- William Hardiman, of Michigan, to be a Member bate; following which, when the Senate resumes con- of the Board of Directors of the National Institute sideration of the nomination on Wednesday, January of Building Sciences for a term expiring September 26, 2005, a vote on confirmation of the nomination 7, 2006. will occur following 40 additional minutes for clos- Floyd Hall, of New Jersey, to be a Member of the ing remarks. Reform Board (Amtrak) for a term of five years. Nominations Confirmed: Senate confirmed the fol- Enrique J. Sosa, of Florida, to be a Member of the lowing nominations: Reform Board (Amtrak) for a term of five years. Carlos M. Gutierrez, of Michigan, to be Secretary Thomas V. Skinner, of Illinois, to be an Assistant of Commerce. Pages S116–26, S371 Administrator of the Environmental Protection Nominations Received: Senate received the fol- Agency. lowing nominations: Luis Luna, of Maryland, to be an Assistant Ad- Thomas C. Dorr, of Iowa, to be Under Secretary ministrator of the Environmental Protection Agency. of Agriculture for Rural Development. Major General Don T. Riley, United States Army, Thomas C. Dorr, of Iowa, to be a Member of the to be a Member and President of the Mississippi Board of Directors of the Commodity Credit Cor- River Commission. poration. D. Michael Rappoport, of Arizona, to be a Mem- Peter Cyril Wyche Flory, of Virginia, to be an As- ber of the Board of Trustees of the Morris K. Udall sistant Secretary of Defense. Scholarship and Excellence in National Environ- John Paul Woodley, Jr., of Virginia, to be an As- mental Policy Foundation for a term expiring Octo- sistant Secretary of the Army. ber 6, 2008. D23

VerDate jul 14 2003 06:55 Jan 25, 2005 Jkt 039060 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\CR\FM\D24JA5.REC D24JA5 D24 CONGRESSIONAL RECORD — DAILY DIGEST January 24, 2005 Michael Butler, of Tennessee, to be a Member of Katina P. Strauch, of South Carolina, to be a the Board of Trustees of the Morris K. Udall Schol- Member of the National Museum and Library Serv- arship and Excellence in National Environmental ices Board for a term expiring December 6, 2009. Policy Foundation for a term expiring October 6, Thomas A. Fuentes, of California, to be a Member 2008. of the Board of Directors of the Legal Services Cor- Raymond Thomas Wagner, Jr., of Missouri, to be poration for a term expiring July 13, 2005. a Member of the Internal Revenue Service Oversight Bernice Phillips, of New York, to be a Member Board for a term expiring September 14, 2009. of the Board of Directors of the Legal Services Cor- Harold Damelin, of Virginia, to be Inspector Gen- poration for a term expiring July 13, 2005. eral, Department of the Treasury. George Perdue, of Georgia, to be a Member of the Daniel R. Levinson, of Maryland, to be Inspector Board of Trustees of the James Madison Memorial General, Department of Health and Human Services. Fellowship Foundation for a term expiring Novem- Howard J. Krongard, of New Jersey, to be Inspec- ber 5, 2006. tor General, Department of State. Ronald E. Meisburg, of Virginia, to be a Member Nadine Hogan, of Florida, to be a Member of the of the National Labor Relations Board for the term Board of Directors of the Inter-American Foundation of five years expiring August 27, 2008. for a term expiring June 26, 2008. Kiron Kanina Skinner, of Pennsylvania, to be a Member of the National Security Education Board Kenneth Y. Tomlinson, of Virginia, to be Chair- for a term of four years. man of the Broadcasting Board of Governors. Charles P. Ruch, of South Dakota, to be a Mem- D. Jeffrey Hirschberg, of Wisconsin, to be a ber of the Board of Trustees of the Barry Goldwater Member of the Broadcasting Board of Governors for Scholarship and Excellence in Education Foundation a term expiring August 13, 2007. for a term expiring August 11, 2010. Kenneth Y. Tomlinson, of Virginia, to be a Mem- Edward L. Flippen, of Virginia, to be Inspector ber of the Broadcasting Board of Governors for a General, Corporation for National and Community term expiring August 13, 2007. Services. Jorge A. Plasencia, of Florida, to be a Member of Brian David Miller, of Virginia, to be Inspector the Advisory Board for Cuba Broadcasting for a term General, General Services Administration. expiring October 27, 2006. Allen Weinstein, of Maryland, to be Archivist of Roger W. Wallace, of Texas, to be a Member of the United States. the Board of Directors of the Inter-American Foun- Carolyn L. Gallagher, of Texas, to be a Governor dation for a term expiring October 6, 2008. of the United States Postal Service for the remainder Jack Vaughn, of Texas, to be a Member of the of the term expiring December 8, 2009. Board of Directors of the Inter-American Foundation Louis J. Giuliano, of New York, to be a Governor for a term expiring September 20, 2006. of the United States Postal Service for a term expir- Jay T. Snyder, of New York, to be a Member of ing December 8, 2005. the United States Advisory Commission on Public Tony Hammond, of Virginia, to be a Commis- Diplomacy for a term expiring July 1, 2007. sioner of the Postal Rate Commission for a term ex- David B. Balton, of the District of Columbia, for piring October 14, 2010. the rank of Ambassador during his tenure of service Louis J. Giuliano, of New York, to be a Governor as Deputy Assistant Secretary of State for Oceans and of the United States Postal Service for a term expir- Fisheries. ing December 8, 2014. Joseph R. DeTrani, of Virginia, for the rank of Stephen Thomas Conboy, of Virginia, to be Ambassador during his tenure of service as Special United States Marshal for the Superior Court of the Envoy for the Six Party Talks. District of Columbia for the term of four years. John Thomas Schieffer, of Texas, to be Ambas- David B. Rivkin, Jr., of Virginia, to be a Member sador to Japan. of the Foreign Claims Settlement Commission of the Craig T. Ramey, of West Virginia, to be a Mem- United States for the term expiring September 30, ber of the Board of Directors of the National Board 2007. for Education Sciences for a term of two years. Routine lists in the Foreign Service. Pages S370–71 A. Wilson Greene, of Virginia, to be a Member Executive Reports of Committees: Pages S141–42 of the National Museum and Library Services Board Statements on Introduced Bills/Resolutions: for a term expiring December 6, 2009. Pages S146–S370 Harry Robinson, Jr., of Texas, to be a Member of the National Museum Services Board for a term ex- Additional Statements: Pages S140–41 piring December 6, 2008. Notices of Hearings/Meetings: Page S370

VerDate jul 14 2003 06:55 Jan 25, 2005 Jkt 039060 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\CR\FM\D24JA5.REC D24JA5 January 24, 2005 CONGRESSIONAL RECORD — DAILY DIGEST D25 Authority for Committees to Meet: Page S370 Committee Meetings Adjournment: Senate convened at 2:01 p.m., and as a further mark of respect to the memory of the late (Committees not listed did not meet) Howard S. Liebengood, former Sergeant at Arms of the Senate, and in accordance with S. Res. 7, ad- BUSINESS MEETING journed at 7:16 p.m., until 9:45 a.m., on Tuesday, Committee on Veterans Affairs: Committee ordered fa- January 25, 2005. (For Senate’s program, see the re- vorably reported the nomination of Jim Nicholson, marks of the Majority Leader in today’s Record on of Colorado, to be Secretary of Veterans Affairs. Prior page S 370.) to this action, committee concluded a hearing to ex- amine the nomination of Jim Nicholson, of Colo- rado, to be Secretary of Veterans Affairs, after the nominee, who was introduced by Senators Allard and Salazar, testified and answered questions in his own behalf. h House of Representatives to consider the nomination of Michael O. Leavitt, of Chamber Action Utah, to be Secretary of Health and Human Services, 10 The House was not in session today. a.m., SD–215. Committee Meetings House No committee meetings were held. Committee on Rules, to hold an organizational meeting, f and to consider H.R. 54, Congressional Gold Medal En- hancement Act of 2005, 5 p.m., H–313 Capitol. COMMITTEE MEETINGS FOR TUESDAY, JANUARY 25, 2005 (Committee meetings are open unless otherwise indicated) Senate Committee on Finance: business meeting to consider orga- nizational matters; to be followed by a business meeting

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:45 a.m., Tuesday, January 25 2 p.m., Tuesday, January 25

Senate Chamber House Chamber Program for Tuesday: After the transaction of any Program for Tuesday: To be announced. morning business (not to extend beyond 60 minutes), Senate will consider the nomination of Condoleezza Rice, of California, to be Secretary of State, with a vote on con- firmation of the nomination to occur following 9 hours of debate. (Senate will recess from 12:30 p.m. until 2:15 p.m. for their respective party conferences.)

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