[Congressional Record Volume 140, Number 30 (Thursday, March 17, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 17, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. EXON (for himself and Mr. Harkin):
  S. 1942. A bill to authorize appropriations for the Local Rail 
Freight Assistance Program; to the Committee on Commerce, Science, and 
Transportation.


       local rail freight assistance reauthorization act of 1994

  Mr. EXON. Mr. President, I am pleased to introduce a bill to 
reauthorize the Local Rail Freight Assistance [LRFA] Program. This 
program is one of America's key programs for investment in rail 
infrastructure. This legislation reauthorizes the program for 3 years 
at its current authorized level.
  LRFA provides much needed assistance to America's rural communities 
to assure that they maintain much needed rail service and that they 
remain linked into America's rail network. One only needs to look at 
the floods of last summer to see how important the LRFA Program is. 
When the Congress enacted disaster relief legislation last year, it was 
through the LRFA Program that the Nation helped get America's short 
lines and regional rails back on track. Without this help, shippers, 
railroads, workers, and communities would have been financially 
devastated.
  In this era of deficit reduction, no program should escape intense 
security, the LRFA included. This program stands up very well. It 
provides jobs, investment, and productivity improvement. It is 
absolutely critical to rail service in rural America and helps stitch 
small town America into the Nation's transportation fabric.
  As chairman of the Senate Surface Transportation Subcommittee, I want 
to look at ways to improve this program, to get more infrastructure for 
every dollar of Federal investment and to also look at direct and 
guaranteed loan options.
  Mr. President, over the years the Congress has consistently supported 
this much needed program. I encourage my colleagues to join me in 
support of this important reauthorization legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1942

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Local Rail Freight 
     Assistance Reauthorization Act of 1994''.

     SEC. 2. LOCAL RAIL FREIGHT ASSISTANCE PROGRAM.

       Section 5(q) of the Department of Transportation Act (49 
     App. U.S.C. 1654(q)) is amended--
       (1) by inserting ``There are authorized to be appropriated 
     to the Secretary for the purposes of this section not to 
     exceed $30,000,000 for each of the fiscal years 1995, 1996, 
     and 1997.'' immediately after the second sentence; and
       (2) by striking ``any period after September 30, 1994'' and 
     inserting in lieu thereof ``any period after September 30, 
     1997''.
                                 ______

      By Mrs. KASSEBAUM (for herself, Mr. Kerrey, Mr. Durenberger and 
        Mr. Chafee):
  S. 1943. A bill to consolidate Federal employment training programs 
and create a new process and structure for funding the programs, and 
for other purposes; to the Committee on Labor and Human Resources.


                 job training consolidation act of 1994

  Mrs. KASSEBAUM. Mr. President, today I am introducing legislation on 
behalf of myself and Senators Kerrey of Nebraska, Chafee, and 
Durenberger, which is designed to revamp our current Federal job 
training system. From the viewpoint of both the taxpayer and the 
trainee, there can be little doubt that a comprehensive overhaul is 
long overdue.
  What began as a few limited programs in the late sixties has exploded 
today into a confusing maze of 154 separate programs, costing almost 
$25 billion a year. Those programs are hamstrung by duplication, waste, 
and conflicting regulations that too often leave program trainees no 
better off than when they started. It is a system with more than 60 
separate programs targeted at the economically disadvantaged, with, for 
example, 34 literacy programs aimed at reaching the same group. It is a 
system with six different standards for defining income eligibility 
levels, five for defining family or household income, and five for 
defining what is included in income. It is a system which lacks any 
effective means for determining whether or not programs actually work.
  A report recently released by the General Accounting Office indicated 
that fewer than half of the 62 job training programs selected for study 
even bothered to check to see if participants obtained jobs after 
training. I think this is one of the real problems, Mr. President--
being able to analyze what sort of effect these training programs have 
had and how we can be more useful by following through with the data to 
understand what is occurring.
  During the past decade, only seven of those programs were evaluated 
to find out whether trainees would have achieved the same outcomes 
without Federal assistance.
  It is little wonder that the news media has already supplied examples 
of failure and lack of cost effectiveness in these programs. Although 
anecdotal in nature, the following examples offer some graphic 
illustrations of the broader problems in Federal jobs training efforts: 
In suburban Seattle, a woman told a reporter she was enrolled in her 
eighth Federal job training program. She said the previous seven 
programs offered no more help than a phone book and a few job leads. 
She hoped this program would finally give her the skills she needed to 
pull herself out of poverty, off Government assistance, and into a good 
job.
  In Los Angeles, one private sector job training initiative has 
managed to put together a fairly successful effort, but is able to do 
so only by patching together a mind-boggling array of funding sources. 
These sources include a special farm worker grant, several different 
programs for the disadvantaged within JTPA, the Jobs Program for 
Welfare Recipients, the Youth Fair Chance Program, Pell grants, and 
student loans, not to mention various local and State employment 
programs.
  A recent New York Times article told the story of a private placement 
firm that charged States $5,500 for each welfare recipient placed in a 
job. While the program had some successes, the company has paid nearly 
$1 million, 60 percent of that in Federal matching funds, for people 
who never found permanent work.
  Mr. President, I think the message is loud and clear: The time for 
half-measures for reforming the Federal job training system has passed. 
The current system is an obvious waste of scarce Federal resources and, 
more importantly, is really not providing the type of assistance and 
support that is needed.
  I believe there is general acknowledgment that we must act now to 
reform the system. The administration has spoken to this need, as have 
many of my colleagues, and I look forward to working with them in this 
endeavor. In fact, the administration is proposing legislation which 
attempts to bring together some half-dozen programs serving dislocated 
workers.
  The legislation that is being introduced today, the Job Training 
Consolidation Act, takes a different approach. Specifically, this 
legislation differs from the administration's in three important 
respects:
  First, its focus is not limited to just the dislocated worker 
programs, but rather encompasses all Federal job training efforts.
  Second, it does not call for additional new funding and does not 
create new categories for entitlement spending.
  Third, it offers, immediately, the opportunity for States and 
localities to combine resources to tailor programs to meet current 
needs in a way that the States themselves believe is necessary to meet 
the particular concerns of a community or the State as a whole.
  The Job Training Consolidation Act would provide both the mechanism 
and the strategy for overhauling the entire system. The goal is a 
single coherent approach to employment training to assist all jobs 
seekers in entering the work force, gaining basic skills, or retraining 
for new jobs.
  To achieve this goal, the legislation takes two important steps.
  First, it establishes a public-private partnership at the Federal 
level to move toward consolidating all existing programs following a 2-
year transition period.
  Second, broad waivers would be granted immediately to the States to 
allow maximum flexibility for coordination of the largest programs to 
meet local needs, such as immediate help for the jobless.
  This legislation would transfer responsibility for job training to 
the States and, in turn, to local communities to implement programs 
geared to those needs. In addition, the bill requires the involvement 
of employers at all stages of the process.
  Ultimately, an integrated system would be created that would assure 
job seekers information about all available employment and training 
services no matter where they first applied for help.
  I believe we must take bold steps to reform our existing training 
programs, not merely add new ones in the name of reform. The bill would 
consolidate almost 60 programs contained in a dozen statutes without 
additional spending, new entitlements, tax increases, or additional 
layers of bureaucracy. In fact, the consolidation effort would probably 
result in cost savings that could be used to serve more clients more 
effectively. I think it will enhance the ability of all those seeking 
jobs to obtain better assistance in obtaining the skills they need to 
get a job, a good job, a job that will provide stability to an 
individual or a family.
  I look forward to working with my colleagues in achieving this goal. 
I am particularly pleased to see on the floor a cosponsor in this 
effort who has spoken eloquently in the past on the need to provide 
truly inventive, creative initiatives that address the problems of 
Government and, more importantly, of people as they related to 
Government.
  Mr. President, I ask unanimous consent that the text of the bill and 
additional material be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1943

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Job 
     Training Consolidation Act of 1994''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

 TITLE I--USE OF FEDERAL FUNDS FOR STATE EMPLOYMENT TRAINING ACTIVITIES

Sec. 101. Formula assistance.
Sec. 102. Discretionary assistance.
Sec. 103. Trade adjustment assistance services.
Sec. 104. Employment training activities.
Sec. 105. Reports.

       TITLE II--DEVELOPMENT OF STATE EMPLOYMENT TRAINING SYSTEMS

           Subtitle A--Commission on Employment and Training

Sec. 201. Establishment of Commission.
Sec. 202. Powers of the Commission.
Sec. 203. Commission personnel matters.
Sec. 204. Termination of the Commission.
Sec. 205. Authorization of appropriations.

       Subtitle B--Consolidation of Employment Training Programs

Sec. 211. Repeals of employment training programs.
Sec. 212. Study and report.
Sec. 213. Congressional consideration of proposed Commission reforms.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) according to the General Accounting Office--
       (A) there are currently 154 Federal employment training 
     programs; and
       (B) these programs cost nearly $25,000,000,000 annually and 
     are administered by 14 different Federal agencies;
       (2) these programs target individual populations such as 
     economically disadvantaged persons, dislocated workers, 
     youth, and persons with disabilities;
       (3) many of these programs provide similar services, such 
     as counseling, assessment, and literacy skills enhancement, 
     resulting in overlapping services, wasted funds, and 
     confusion on the part of local service providers and 
     individuals seeking assistance;
       (4) the Federal agencies administering these programs fail 
     to collect enough performance data to know whether the 
     programs are working effectively;
       (5) the additional cost of administering overlapping 
     employment training programs at the Federal, State, and local 
     levels diverts scarce resources that could be better used to 
     assist all persons in entering the work force, gaining basic 
     skills, or retraining for new jobs;
       (6) the conflicting eligibility requirements, and annual 
     budgeting or operating cycles, of employment training 
     programs create barriers to coordination of the programs that 
     may restrict access to services and result in inefficient use 
     of resources;
       (7) despite more than 30 years of federally funded 
     employment training programs, the Federal Government has no 
     single, coherent policy guiding its employment training 
     efforts;
       (8) the Federal Government has failed to adequately 
     maximize the effectiveness of the substantial public and 
     private sector resources of the United States for training 
     and work-related education; and
       (9) the Federal Government lacks a national labor market 
     information system, which is needed to provide current data 
     on jobs and skills in demand in different regions of the 
     country.

     SEC. 3. DEFINITIONS.

       As used in this Act:
       (1) Covered act.--The term ``covered Act'' means an Act 
     described in paragraph (3).
       (2) Covered activity.--The term ``covered activity'' means 
     an activity authorized to be carried out under a covered 
     provision.
       (3) Covered provision.--The term ``covered provision'' 
     means a provision of--
       (A) the Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.);
       (B) the Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.);
       (C) part B of title III of the Adult Education Act (20 
     U.S.C. 1203 et seq.);
       (D) part F of title IV of the Social Security Act (42 
     U.S.C. 681 et seq.);
       (E) section 235 or 236, or paragraph (1) or (2) of section 
     250(d), of the Trade Act of 1974 (19 U.S.C. 2295, 2296, or 
     2331(d));
       (F) the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
       (G) title I of the Rehabilitation Act of 1973 (29 U.S.C. 
     720 et seq.);
       (H) section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(d)(4));
       (I) the Refugee Education Assistance Act of 1980 (8 U.S.C. 
     1522 note);
       (J) section 204 of the Immigration Reform and Control Act 
     of 1986 (8 U.S.C. 1255a note);
       (K) title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.); and
       (L) title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056 et seq.).
       (4) Local entity.--The term ``local entity'' includes 
     public and private entities.
 TITLE I--USE OF FEDERAL FUNDS FOR STATE EMPLOYMENT TRAINING ACTIVITIES

     SEC. 101. FORMULA ASSISTANCE.

       (a) Use of Funds.--Notwithstanding any other provision of 
     Federal law, a State that receives State formula assistance 
     for a covered activity for a fiscal year may use the 
     assistance to carry out activities as described in section 
     104 for the fiscal year. Notwithstanding any other provision 
     of Federal law, a local entity that receives local formula 
     assistance for a covered activity for a fiscal year may use 
     the assistance to carry out activities as described in 
     section 104 for the fiscal year.
       (b) Requirements.--
       (1) In general.--Except as otherwise provided in this 
     subsection, a State may use such State formula assistance, 
     and a local entity may use such local formula assistance, to 
     carry out activities as described in section 104, without 
     regard to the requirements of any covered Act.
       (2) Remaining program requirements.--
       (A) Allocation and enforcement.--Any head of a Federal 
     agency that allocates State formula assistance, and any State 
     that allocates local formula assistance, for a covered 
     activity--
       (i) shall allocate such assistance in accordance with 
     allocation requirements that are specified in the covered 
     Acts and that relate to the covered activity, including 
     provisions relating to minimum or maximum allocations; and
       (ii)(I) if the State or local entity uses such assistance 
     to carry out the covered activity, shall exercise the 
     enforcement and oversight authorities that are specified in 
     the covered Acts and that relate to the covered activity; and
       (II) if the State or local entity does not use such 
     assistance to carry out the covered activity, shall exercise 
     such authorities solely for the purpose of ensuring that the 
     assistance is used to carry out activities as described in 
     section 104, and in accordance with the applicable 
     requirements of this title.
       (B) Administrative expense limits.--Each State that 
     receives State formula assistance, and each local entity that 
     receives local formula assistance, for a covered activity--
       (i) shall comply with any limits on administrative expenses 
     that are specified in the covered Acts and that relate to the 
     covered activity; and
       (ii) for any fiscal year, may not use a greater percentage 
     of the State formula assistance or local formula assistance 
     to pay for the administrative expenses of activities carried 
     out under section 104 than the State or entity used to pay 
     for such administrative expenses relating to the covered 
     activity for fiscal year 1994.
       (C) Conditional benefits.--Any State that receives State 
     formula assistance to carry out a covered activity described 
     in a covered provision specified in subparagraph (D) or (H) 
     of section 3(3) and that uses the assistance to carry out 
     activities as described in section 104 shall carry out an 
     activity that is appropriate for persons who would otherwise 
     be eligible to participate in the covered activity. Any 
     person in the State who would otherwise be required to 
     participate in the covered activity in order to obtain 
     Federal assistance under a covered Act shall be eligible to 
     receive the assistance by participating in such appropriate 
     activity.
       (D) Availability of appropriations.--Nothing in this 
     section shall affect the period for which any appropriation 
     under a covered Act remains available.
       (c) Definitions.--As used in this section:
       (1) Local formula assistance.--The term ``local formula 
     assistance'' means assistance made available by a State to a 
     local entity under--
       (A)(i) subsections (a)(2) and (b) of section 202 of the Job 
     Training Partnership Act (29 U.S.C. 1602);
       (ii) section 252(b) of such Act (29 U.S.C. 1631(b)) in 
     accordance with subsections (a)(2) and (b) of section 262 of 
     such Act (29 U.S.C. 1642);
       (iii) subsections (a)(2) and (b) of section 262 of such Act 
     (29 U.S.C. 1642); or
       (iv) subsections (a)(1), (b), and (d) of section 302 of 
     such Act (29 U.S.C. 1652);
       (B)(i) section 102(a)(1), and section 231(a) or 232 of the 
     Carl D. Perkins Vocational Education Act (20 U.S.C. 
     2312(a)(1), and 2341(a) or 2341a); or
       (ii) section 353(b) of such Act (20 U.S.C. 2395b(b)); or
       (C) section 722(g)(3)(B) of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11432(g)(3)(B).
       (2) State formula assistance.--The term ``State formula 
     assistance'' means assistance made available by an agency of 
     the Federal Government to a State under--
       (A)(i) subsections (a)(2) and (c) of section 202 of the Job 
     Training Partnership Act (29 U.S.C. 1602);
       (ii) subsections (a)(2) and (c) of section 262 of such Act 
     (29 U.S.C. 1642);
       (iii) subsections (a)(1), (b), and (c)(1) of section 302 of 
     such Act (29 U.S.C. 1652); or
       (iv) sections 502(d) and 503 of such Act (29 U.S.C. 
     1791a(d));
       (B)(i) section 101(a)(2) of the Carl D. Perkins Vocational 
     Education Act (20 U.S.C. 2311(a)(2)) (other than assistance 
     made available under section 231(a) or 232 of such Act (20 
     U.S.C. 2341(a) or 2341a) to local educational agencies or 
     other local entities within the State);
       (ii) section 112(f) of such Act (20 U.S.C. 2322(f)); or
       (iii) section 343(b)(1) of such Act (20 U.S.C. 
     2394a(b)(1));
       (C) section 313(b) of the Adult Education Act (20 U.S.C. 
     1201b(b)) (other than assistance reserved to carry out part D 
     of title III of such Act (20 U.S.C. 1213 et seq.));
       (D) subsection (k) or (l) of section 403 of the Social 
     Security Act (42 U.S.C. 603);
       (E) section 6(b)(1) of the Wagner-Peyser Act (29 U.S.C. 
     49e(b)(1));
       (F)(i) subsection (a) or (b) of section 110 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 730) (less any amount 
     reserved under subsection (d) of such section);
       (ii) section 112(e) of such Act (29 U.S.C. 732(e)); or
       (iii) section 124 of such Act (29 U.S.C. 744);
       (G) section 16(h)(1) of the Food Stamp Act of 1977 (7 
     U.S.C. 2025(h)(1)) (other than funds made available under 
     subparagraph (B) of such section);
       (H)(i) section 201(b) of the Refugee Education Assistance 
     Act of 1980 (8 U.S.C. 1522 note);
       (ii) section 301(b) of such Act (8 U.S.C. 1522 note); or
       (iii) section 401(b) of such Act (8 U.S.C. 1522 note);
       (I) section 204(b) of the Immigration Reform and Control 
     Act of 1986 (8 U.S.C. 1255a note);
       (J)(i) section 722(b) of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11432(b)) (other than funds made 
     available under section 722(g)(3)(B) of such Act); or
       (ii) section 752(a) of such Act (42 U.S.C. 11462(a)); or
       (K) section 506(a)(3) of the Older Americans Act of 1965 
     (42 U.S.C. 3056d(a)(3)).

     SEC. 102. DISCRETIONARY ASSISTANCE.

       (a) In General.--
       (1) Prior assistance.--Notwithstanding any other provision 
     of Federal law, a State or local entity that received, prior 
     to the date of enactment of this Act, discretionary 
     assistance for a covered activity for a fiscal year may use 
     the assistance to carry out activities as described in 
     section 104 for the fiscal year.
       (2) Future assistance.--Notwithstanding any other provision 
     of Federal law, a State or local entity that is eligible to 
     apply for discretionary assistance for a covered activity for 
     a fiscal year may apply, as described in subsection (c), for 
     the assistance to carry out activities as described in 
     section 104 for the fiscal year.
       (b) Use of Funds.--
       (1) In general.--Except as otherwise provided in this 
     subsection, a State or local entity that receives 
     discretionary assistance prior to the date of enactment of 
     this Act or on approval of an application submitted under 
     subsection (c) may use the discretionary assistance to carry 
     out activities as described in section 104, without regard to 
     the requirements of any covered Act.
       (2) Remaining program requirements.--A State or local 
     entity that uses discretionary assistance to carry out such 
     activities shall use the assistance in accordance with the 
     requirements of subparagraphs (A), (B), and (D) of section 
     101(b)(2), which shall apply to such assistance in the same 
     manner and to the same extent as the requirements apply to 
     State formula assistance or local formula assistance, as 
     appropriate, used under section 101.
       (c) Additional Information in Application.--A State or 
     local entity seeking to use discretionary assistance as 
     described in subsection (a)(2) shall include in the 
     application (under the covered provision involved) of the 
     State or local entity for the assistance (in lieu of any 
     information otherwise required to be submitted)--
       (1) a description of the funds the State or local entity 
     proposes to use to carry out activities as described in 
     section 104;
       (2) a description of the activities to be carried out with 
     such funds;
       (3) a description of the specific outcomes expected of 
     participants in the activities; and
       (4) such other information as the head of the agency with 
     responsibility for evaluating the application may require.
       (d) Evaluation of Application.--In evaluating an 
     application described in subsection (c), the agency with 
     responsibility for evaluating the application shall evaluate 
     the application by determining the likelihood that the State 
     or local entity submitting the application will be able to 
     carry out activities as described in section 104. In 
     evaluating applications for discretionary assistance, the 
     agency shall not give preference to applications proposing 
     covered activities over applications proposing activities 
     described in section 104.
       (e) Definition.--As used in this section, the term 
     ``discretionary assistance'' means assistance that--
       (1) is not State formula assistance or local formula 
     assistance, as defined in section 101(c);
       (2) is not Federal assistance available to provide services 
     described in section 235 or 236, or paragraph (1) or (2) of 
     section 250(d), of the Trade Act of 1974 (19 U.S.C. 2295, 
     2296, or 2331(d)); and
       (3) is made available by an agency of the Federal 
     Government, or by a State, to a State or local entity to 
     enable the State or local entity to carry out an activity 
     under a covered provision.

     SEC. 103. TRADE ADJUSTMENT ASSISTANCE SERVICES.

       (a) Use of Assistance.--
       (1) In general.--Notwithstanding any other provision of 
     Federal law, if the Secretary of Labor initiates efforts 
     under section 235 of the Trade Act of 1974 (19 U.S.C. 2295) 
     to secure services described in such section 235 (including 
     services that are provided under section 250(d)(1) of such 
     Act (19 U.S.C. 2331(d)(1))) for a worker, or if the Secretary 
     makes a determination under section 236(a) of the Trade Act 
     of 1974 (19 U.S.C. 2296(a)) that entitles a worker to 
     payments described in such section for services (including 
     services for which payment is provided under section 
     250(d)(2) of such Act), the Secretary shall notify the State 
     in which the worker is located.
       (2) Activities.--A State that receives such notification 
     may apply under subsection (c) for the Federal assistance 
     that would otherwise have been expended to provide services 
     described in paragraph (1) to the worker, to enable the State 
     to carry out activities as described in section 104 for the 
     fiscal year. If the State has received such assistance in 
     advance, the State may apply under subsection (c) to use such 
     assistance to enable the State to carry out activities as 
     described in section 104 for the fiscal year.
       (b) Requirements.--
       (1) In general.--Except as otherwise provided in this 
     subsection, a State that receives such Federal assistance and 
     receives approval of an application submitted under 
     subsection (c) may use the assistance to carry out activities 
     as described in section 104, without regard to the 
     requirements of any covered Act.
       (2) Remaining program requirements.--A State that uses such 
     Federal assistance to carry out such activities shall use the 
     assistance in accordance with the requirements of 
     subparagraphs (A)(ii), (B), and (D) of section 101(b)(2), 
     which shall apply to such assistance in the same manner and 
     to the same extent as the requirements apply to State formula 
     assistance or local formula assistance, as appropriate, used 
     under section 101.
       (3) Conditional benefits.--Any State that receives Federal 
     assistance that would otherwise have been expended to provide 
     services described in subsection (a)(1) to a worker, and that 
     uses the assistance to carry out activities as described in 
     section 104, shall carry out eligible alternative activities 
     that are appropriate for the worker. If the worker would 
     otherwise be required to receive such services in order to 
     obtain Federal funds under another provision of chapter 2 of 
     title II of the Trade Act of 1974 (19 U.S.C. 2291 et seq.), 
     the worker shall be eligible to receive the funds by 
     participating in such eligible alternative activities.
       (c) Additional Information in Application.--A State seeking 
     to use Federal assistance that would otherwise have been 
     expended to provide services described in subsection (a)(1) 
     to a worker shall submit an application to the Secretary of 
     Labor, at such time and in such manner as the Secretary may 
     require, that contains--
       (1) a description of the Federal assistance the State 
     proposes to use to carry out activities as described in 
     section 104;
       (2) a description of the activities to be carried out with 
     such assistance;
       (3) a description of the specific outcomes expected of 
     participants in the activities; and
       (4) such other information as the Secretary of Labor may 
     require.
       (d) Evaluation of Application.--In evaluating an 
     application described in subsection (c), the Secretary of 
     Labor shall evaluate the application by determining the 
     likelihood that the State submitting the application will be 
     able to carry out activities as described in section 104. In 
     evaluating applications for such Federal assistance, the 
     Secretary of Labor shall not give preference to applications 
     proposing covered activities over applications proposing 
     activities described in section 104.

     SEC. 104. EMPLOYMENT TRAINING ACTIVITIES.

       A State or local entity that receives State formula 
     assistance or local formula assistance as described in 
     section 101(a), receives discretionary assistance as 
     described in section 102(b), or receives Federal assistance 
     as described in section 103(b), may--
       (1) use the assistance to carry out activities to develop a 
     comprehensive statewide employment training system that--
       (A) is primarily designed and implemented by communities to 
     serve local labor markets in the State involved;
       (B) requires the participation and involvement of private 
     sector employers in all phases of the planning, development, 
     and implementation of the system, including--
       (i) determining the skills to be developed by each 
     employment training program carried out through the system; 
     and
       (ii) designing the training to be provided by each such 
     program;
       (C) assures that State and local training efforts are 
     linked to available employment opportunities;
       (D) includes standards for determining the effectiveness of 
     such programs; and
       (E) is an integrated system that assures that individuals 
     seeking employment in the State will receive information 
     about all available employment training services provided in 
     the State, regardless of where the individuals initially 
     enter the system; or
       (2) may use the assistance that would otherwise have been 
     used to carry out 2 or more covered activities--
       (A) to address the high priority needs of unemployed 
     persons in the State or community involved for employment 
     training services;
       (B) to improve efficiencies in the delivery of the covered 
     activities; or
       (C) in the case of overlapping or duplicative activities--
       (i) by combining the covered activities and funding the 
     combined activities; or
       (ii) by eliminating one of the covered activities and 
     increasing the funding to the remaining covered activity.

     SEC. 105. REPORTS.

       (a) State Reports.--
       (1) Preparation.--A State that receives State formula 
     assistance as described in section 101(a), receives 
     discretionary assistance as described in section 102(b), or 
     receives Federal assistance as described in section 103(b), 
     and that uses the assistance to carry out activities as 
     described in section 104 shall annually prepare a report 
     containing--
       (A) information on the amount and origin of such 
     assistance;
       (B) information on the activities carried out with such 
     assistance;
       (C) information regarding the populations to be served with 
     such assistance, such as economically disadvantaged persons, 
     dislocated workers, youth, and individuals with disabilities;
       (D) a summary of the reports received by the State under 
     subsection (b); and
       (E) such other information as the Secretaries, in 
     consultation with the Commission, may require.
       (2) Submission.--The State shall submit the report 
     described in paragraph (1)--
       (A) with respect to the activities carried out during the 
     year beginning on the date of enactment of this Act, to the 
     Chairperson of the Commission, the Committee on Education and 
     Labor of the House of Representatives, and the Committee on 
     Labor and Human Resources of the Senate, not later than 60 
     days after the end of such year; and
       (B) with respect to the activities carried out during the 
     subsequent year, to the committees specified in subparagraph 
     (A), not later than 60 days after the end of such year.
       (b) Local Entity Reports.--
       (1) Preparation.--A local entity that receives local 
     formula assistance as described in section 101(a), or that 
     receives discretionary assistance as described in section 
     102(b), and uses the assistance to carry out activities as 
     described in section 104 shall annually prepare a report 
     containing--
       (A) information on the amount and origin of such 
     assistance;
       (B) information on the activities carried out with such 
     assistance;
       (C) information regarding the populations to be served with 
     such assistance, such as economically disadvantaged persons, 
     dislocated workers, youth, and individuals with disabilities; 
     and
       (D) such other information as the State that allocated the 
     assistance may require.
       (2) Submission.--The local entity shall submit the report 
     described in paragraph (1)--
       (A) with respect to the activities carried out during the 
     year beginning on the date of enactment of this Act, to the 
     State not later than 30 days after the end of such year; and
       (B) with respect to the activities carried out during the 
     subsequent year, to the State not later than 30 days after 
     the end of such subsequent year.
       TITLE II--DEVELOPMENT OF STATE EMPLOYMENT TRAINING SYSTEMS
           Subtitle A--Commission on Employment and Training

     SEC. 201. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the Commission on Employment and Training (referred 
     to in this Act as the ``Commission'').
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of 7 
     members, including--
       (A) 4 members, appointed by the President;
       (B) the Secretary of Labor;
       (C) the Secretary of Education; and
       (D) the Secretary of Commerce.
       (2) Qualifications.--In appointing the 4 members of the 
     Commission described in paragraph (1)(A), the President shall 
     appoint members from among persons representing private 
     sector businesses, and shall select the 4 members so as to 
     ensure representation of both small and large businesses.
       (3) Consultation.--In selecting individuals for nominations 
     for appointments to the Commission under paragraph (1)(A), 
     the President shall consult with--
       (A) the Speaker of the House of Representatives concerning 
     the appointment of 1 member;
       (B) the Majority Leader of the Senate concerning the 
     appointment of 1 member;
       (C) the Minority Leader of the House of Representatives 
     concerning the appointment of 1 member; and
       (D) the Minority Leader of the Senate concerning the 
     appointment of the remaining member.
       (4) Date.--The President shall appoint the 4 members of the 
     Commission not later than 60 days after the date of enactment 
     of this Act.
       (c) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect the powers of the Commission, but 
     shall be filled in the same manner as the original 
     appointment.
       (d) Functions.--The Commission shall carry out the 
     functions described in section 212.
       (e) Meetings.--
       (1) Frequency.--The Commission shall meet not less often 
     than 4 times per year.
       (2) Open meetings.--Each meeting of the Commission shall be 
     open to the public.
       (3) Voting.--For purposes of all votes of the Commission, 
     the 4 members described in subsection (b)(1)(A) shall each 
     have 1 vote, and the remaining 3 members shall collectively 
     have a fifth vote. Such 3 members shall determine how such 
     fifth vote shall be cast, by a majority vote among as many of 
     the 3 members as are in attendance.
       (4) Cabinet officials.--Each person holding a position 
     described in section 5312 of title 5, United States Code, may 
     attend and present information at any meeting of the 
     Commission.
       (f) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       (g) Chairperson.--The Commission shall elect a Chairperson 
     from among the members described in subsection (b)(1)(A).

     SEC. 202. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Commission considers advisable 
     to carry out the purposes of this Act.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal agency such information as 
     the Commission considers necessary to carry out the 
     provisions of this Act. Upon request of the Chairperson of 
     the Commission, the head of such agency shall furnish such 
     information to the Commission.
       (c) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (d) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 203. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--
       (1) Member.--Each member of the Commission who is not the 
     Chairperson of the Commission and who is not an officer or 
     employee of the Federal Government shall be compensated at a 
     rate equal to the daily equivalent of the annual rate of 
     basic pay prescribed for level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code, for each 
     day (including travel time) during which such member is 
     engaged in the performance of the duties of the Commission. 
     All members of the Commission who are officers or employees 
     of the United States shall serve without compensation in 
     addition to that received for their services as officers or 
     employees of the United States.
       (2) Chairperson.--The Chairperson of the Commission shall 
     be paid for each day referred to in paragraph (1) at a rate 
     equal to the daily equivalent of the annual rate of basic pay 
     prescribed for level III of the Executive Schedule under 
     section 5314 of title 5, United States Code.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Director of Staff.--
       (1) Appointment.--The Commission may, without regard to the 
     civil service laws and regulations, appoint and terminate an 
     individual who has not served as an employee of the 
     Department of Labor, the Department of Education, or the 
     Department of Commerce during the 1-year period preceding the 
     date of such appointment, to serve as the Director of the 
     Commission.
       (2) Compensation.--The Director shall be paid at the rate 
     of basic pay prescribed for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       (d) Staff.--
       (1) In general.--The Director, with the approval of the 
     Commission, may, without regard to the civil service laws and 
     regulations, appoint and terminate such personnel as may be 
     necessary to enable the Commission to perform its duties. Not 
     less than 50 percent of such personnel shall be appointed 
     from individuals who were employed in the private sector 
     immediately prior to appointment as personnel of the 
     Commission.
       (2) Compensation.--The Director, with the approval of the 
     Commission, may fix the compensation of the personnel without 
     regard to the provisions of chapter 51 and subchapter III of 
     chapter 53 of title 5, United States Code, relating to 
     classification of positions and General Schedule pay rates, 
     except that the rate of pay for the personnel may not exceed 
     the annual rate of basic pay prescribed for level V of the 
     Executive Schedule under section 5316 of such title.
       (e) Detail of Government Employees.--
       (1) In general.--Upon request of the Director, with the 
     approval of the Commission, the head of any Federal agency 
     may detail any of the personnel of that agency to the 
     Commission to assist the Commission in carrying out its 
     duties under this part. Such detail shall be without 
     interruption or loss of civil service status or privilege.
       (2) Limitations.--Not more than 50 percent of the personnel 
     employed by or detailed to the Commission may be on detail 
     from any agency of the Federal Government. No officer or 
     employee of any of such an agency may prepare, or approve or 
     disapprove, the report described in section 212, except by 
     casting a vote as provided in section 201(e)(3).
       (f) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level IV of the Executive Schedule under 
     section 5315 of such title.

     SEC. 204. TERMINATION OF THE COMMISSION.

       The Commission shall terminate 90 days after the date on 
     which the Commission submits the report of the Commission 
     under section 212(b).

     SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     $15,000,000 for fiscal year 1995 to carry out the functions 
     of the Commission.
       (b) Availability.--Any sums appropriated under the 
     authorization contained in this section shall remain 
     available, without fiscal year limitation, until expended.
       Subtitle B--Consolidation of Employment Training Programs

     SEC. 211. REPEALS OF EMPLOYMENT TRAINING PROGRAMS.

       (a) In General.--The following provisions are repealed:
       (1) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.).
       (2) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.).
       (3) Part B of title III of the Adult Education Act (20 
     U.S.C. 1203 et seq.).
       (4) Part F of title IV of the Social Security Act (42 
     U.S.C. 681 et seq.).
       (5) Sections 235 and 236 of the Trade Act of 1974 (19 
     U.S.C. 2295 and 2296), and paragraphs (1) and (2) of section 
     250(d) of such Act (19 U.S.C. 2331(d)).
       (6) The Wagner-Peyser Act (29 U.S.C. 49 et seq.).
       (7) Title I of the Rehabilitation Act of 1973 (29 U.S.C. 
     720 et seq.).
       (8) Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(d)(4)).
       (9) The Refugee Education Assistance Act of 1980 (8 U.S.C. 
     1522 note).
       (10) Section 204 of the Immigration Reform and Control Act 
     of 1986 (8 U.S.C. 1255a note).
       (11) Title VII of the Stewart B. McKinney Homeless 
     Assistance Act (42 U.S.C. 11421 et seq.).
       (12) Title V of the Older Americans Act of 1965 (42 U.S.C. 
     3056 et seq.).
       (b) Technical and Conforming Amendments.--Section 250(d) of 
     the Trade Act of 1974 (as amended by subsection (a)(5)) is 
     amended by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (1), (2), and (3), respectively.
       (c) Effective Date.--The repeals made by subsection (a), 
     and the amendments made by subsection (b), shall take effect 
     29 months after the date of enactment of this Act.

     SEC. 212. STUDY AND REPORT.

       (a) Study.--The Commission shall, in consultation with the 
     appropriate agencies of the Federal Government, the 
     appropriate committees of the Congress, the Director of the 
     Office of Management and Budget, and States and local 
     entities, conduct a study to--
       (1) develop a single, coherent national policy, to guide 
     federally funded employment training efforts, that would 
     assist individuals in entering the work force, gaining 
     skills, adding to skills, or retraining for new jobs;
       (2)(A)(i) review the programs and activities that are being 
     carried out under the provisions described in section 211(a);
       (ii) review the reports submitted under section 
     105(a)(2)(A) concerning activities described in section 104 
     that are carried out under title I, especially activities 
     related to efforts to develop comprehensive statewide 
     employment systems; and
       (iii) review all other Federal employment training 
     programs; and
       (B) examine strategies for consolidating or eliminating the 
     programs and activities described in subparagraph (A) to 
     create a single, comprehensive employment training system 
     that--
       (i) gives the States maximum flexibility in carrying out 
     employment training programs through the system;
       (ii) leads to a single, integrated approach to employment 
     training that assures that individuals seeking employment in 
     a State will receive information about all available 
     employment training services provided through the system, 
     regardless of where the individuals initially enter the 
     system; and
       (iii) leads to a single, integrated approach to job 
     training that requires the participation and involvement of 
     private sector employers in the planning, development and 
     implementation of locally established employment training 
     initiatives;
       (3) examine strategies for encouraging participation by 
     private sector employers in local employment training 
     programs that link local training efforts to available 
     employment opportunities;
       (4) determine the best administrative structure for such a 
     system, and the agency that will conduct Federal oversight of 
     the system;
       (5) examine strategies for implementing a national online 
     labor market information system to provide States and units 
     of general local government with--
       (A) descriptions of job duties, training and education 
     requirements, working conditions, and characteristics of 
     occupations;
       (B) current supply and demand statistics on various job 
     skills;
       (C) information on geographic locations where specific jobs 
     and job skills are in greatest demand; and
       (D) information on the best practices used by other States 
     in providing the most effective employment services and 
     training to workers; and
       (6) determine appropriate standards--
       (A) for the Federal Government to measure the overall 
     effectiveness of employment training programs;
       (B) for the States to provide the most effective employment 
     services; and
       (C) that specify a common terminology for programs and 
     services carried out under the system, in order to facilitate 
     access to such services among States and localities.
       (b) Report.--Not later than 26 months after the date of 
     enactment of this Act, the Commission shall--
       (1) prepare and submit to the Committee on Education and 
     Labor of the House of Representatives and the Committee on 
     Labor and Human Resources of the Senate a report containing 
     the findings of the Commission, and recommendations for 
     proposed reforms, based on the study described in subsection 
     (a); and
       (2) submit to the Congress a draft of a joint resolution 
     containing provisions to--
       (A) consolidate or eliminate the programs and activities 
     described in subsection (a)(2)(A) to create the national 
     employment training system described in subsection (a)(2)(B);
       (B) implement strategies described in subsection (a)(3);
       (C) establish or designate the agency, and establish the 
     structure, described in subsection (a)(4);
       (D) establish the system described in subsection (a)(5); 
     and
       (E) implement the standards described in subsection (a)(6).
       (c) Modification.--Notwithstanding any other provision of 
     this Act and to the extent the Commission determines it is 
     appropriate and fiscally responsible, the Commission may 
     include in the joint resolution a provision to reduce the 
     period between the date of the enactment of this Act and the 
     effective date provided in section 211(c).
       (d) Prohibition on Additional Entitlements.--
       (1) Prohibition.--The Commission may not submit a joint 
     resolution under subsection (b) that establishes an 
     additional right for any person to bring an action to obtain 
     services under the programs established in such resolution.
       (2) Relationship to existing entitlements.--The Commission 
     shall not be prohibited from submitting such a resolution--
       (A) that maintains the right of a person to receive Federal 
     assistance by participating in such services, if the person 
     is required under Federal law other than the resolution to 
     participate in a covered activity described in section 
     101(b)(2)(C) or 103(b)(3) to receive the assistance; or
       (B) that does not maintain such right.

     SEC. 213. CONGRESSIONAL CONSIDERATION OF PROPOSED COMMISSION 
                   REFORMS.

       (a) Expedited Procedure.--
       (1) Contents of resolution.--For the purposes of this 
     section, the term ``joint resolution'' means the joint 
     resolution described in section 212.
       (2) Referral to committee.--A joint resolution introduced 
     in the House of Representatives shall be referred to the 
     Committee on Education and Labor of the House of 
     Representatives. A joint resolution introduced in the Senate 
     shall be referred to the Committee on Labor and Human 
     Resources of the Senate. Such a joint resolution may not be 
     reported before the 15th day after the introduction of the 
     joint resolution.
       (3) Discharge of committee.--If a committee to which a 
     joint resolution is referred has not reported such joint 
     resolution (or an identical joint resolution) at the end of 
     30 days after the introduction of the joint resolution, such 
     committee shall be deemed to be discharged from further 
     consideration of such joint resolution and such joint 
     resolution shall be placed on the appropriate calendar of the 
     House involved.
       (4) Motion to proceed.--When a committee to which a joint 
     resolution is referred has reported, or has been deemed to be 
     discharged (under paragraph (3)) from further consideration 
     of, a joint resolution, it is at any time thereafter in order 
     (even though a previous motion to the same effect has been 
     disagreed to, and notwithstanding the provisions of Rule XXII 
     of the Standing Rules of the Senate) for any Member of the 
     respective House to move to proceed to the consideration of 
     the joint resolution, and all points of order against the 
     joint resolution (and against consideration of the joint 
     resolution) are waived. The motion is highly privileged in 
     the House of Representatives and is privileged in the Senate 
     and is not debatable. The motion is not subject to amendment, 
     or to a motion to postpone, or to a motion to proceed to the 
     consideration of other business. A motion to reconsider the 
     vote by which the motion is agreed to or disagreed to shall 
     not be in order. If a motion to proceed to the consideration 
     of the joint resolution is agreed to, the joint resolution 
     shall remain the unfinished business of the respective House 
     until disposed of.
       (5) Floor consideration in the house of representatives.--
       (A) General debate.--General debate on a joint resolution 
     in the House of Representatives shall be limited to not more 
     than 10 hours, which shall be divided equally between the 
     majority and minority parties. A motion further to limit 
     debate is not debatable. A motion to recommit the joint 
     resolution is not in order, and it is not in order to move to 
     reconsider the vote by which the joint resolution is agreed 
     to or disagreed to.
       (B) Consideration.--Consideration of any joint resolution 
     by the House of Representatives shall be in the Committee of 
     the Whole, and the resolution shall be considered for 
     amendment under the 5-minute rule in accordance with the 
     applicable provisions of rule XXIII of the Rules of the House 
     of Representatives. After the Committee rises and reports the 
     resolution back to the House, the previous question shall be 
     considered as ordered on the resolution and any amendments 
     thereto to final passage without intervening motion.
       (C) Conference report.--Debate in the House of 
     Representatives on the conference report on any joint 
     resolution shall be limited to not more than 5 hours, which 
     shall be divided equally between the majority and minority 
     parties. A motion further to limit debate is not debatable. A 
     motion to recommit the conference report is not in order, and 
     it is not in order to move to reconsider the vote by which 
     the conference report is agreed to or disagreed to.
       (D) Rules of the house of representatives.--Appeals from 
     decisions of the Chair relating to the application of the 
     Rules of the House of Representatives to the procedure 
     relating to any joint resolution shall be decided without 
     debate.
       (6) Debate in the senate.--
       (A) General debate.--Debate in the Senate on any joint 
     resolution, and all amendments thereto and debatable motions 
     and appeals in connection therewith, shall be limited to not 
     more than 50 hours. The time shall be equally divided 
     between, and controlled by, the majority leader and the 
     minority leader or their designees.
       (B) Amendments.--Debate in the Senate on any amendment to a 
     joint resolution shall be limited to 2 hours, to be equally 
     divided between, and controlled by, the mover and the manager 
     of the joint resolution, and debate on any amendment to an 
     amendment, debatable motion, or appeal shall be limited to 1 
     hour, to be equally divided between, and controlled by, the 
     mover and the manager of the joint resolution, except that in 
     the event the manager of the joint resolution is in favor of 
     any such amendment, motion, or appeal, the time in opposition 
     thereto shall be controlled by the minority leader or his 
     designee. No amendment that is not relevant to the provisions 
     of such joint resolution shall be received. Such leaders, or 
     either of them, may, from the time under their control on the 
     passage of the joint resolution, allot additional time to any 
     Senator during the consideration of any amendment, debatable 
     motion, or appeal. Immediately following the conclusion of 
     the debate on a joint resolution, and a single quorum call at 
     the conclusion of the debate if requested in accordance with 
     the rules of the Senate, the vote on final passage of the 
     joint resolution shall occur.
       (C) Motions.--A motion to further limit debate is not 
     debatable. A motion to recommit (except a motion to recommit 
     with instructions to report back within a specified number of 
     days, not to exceed 3) is not in order. Debate on any such 
     motion to recommit shall be limited to 1 hour, to be equally 
     divided between, and controlled by, the mover and the manager 
     of the joint resolution.
       (D) Conference report.--
       (i) Motion to proceed.--A motion to proceed to the 
     consideration of the conference report on any joint 
     resolution may be made even though a previous motion to the 
     same effect has been disagreed to.
       (ii) Amendments.--During the consideration in the Senate of 
     the conference report (or a message between Houses) on any 
     joint resolution and all amendments in disagreement, and all 
     amendments thereto, and debatable motions and appeals in 
     connection therewith, debate shall be limited to 10 hours, to 
     be equally divided between, and controlled by, the majority 
     leader and minority leader or their designees. Debate on any 
     debatable motion or appeal related to the conference report 
     (or a message between Houses) shall be limited to 1 hour, to 
     be equally divided between, and controlled by, the mover and 
     the manager of the conference report (or a message between 
     Houses).
       (iii) Amendments in disagreement.--In any case in which 
     there are amendments in disagreement, time on each amendment 
     shall be limited to 30 minutes, to be equally divided 
     between, and controlled by, the manager of the conference 
     report and the minority leader or his designee. No amendment 
     that is not relevant to the provisions of such amendments 
     shall be received.
       (7) Coordination with action by other house.--If, before 
     the passage by one House of a joint resolution of that House, 
     that House receives from the other House a joint resolution, 
     then the following procedures shall apply:
       (A) The joint resolution of the other House shall not be 
     referred to a committee.
       (B) With respect to a joint resolution of the House 
     receiving the joint resolution--
       (i) the procedure in that House shall be the same as if no 
     joint resolution had been received from the other House; but
       (ii) the vote on final passage shall be on the joint 
     resolution of the other House.
       (8) Time limit for acting.--The vote on passage of the 
     joint resolution in each House shall occur on or before the 
     date that is 29 months after the date of enactment of this 
     Act.
       (9) Computation of days.--For purposes of this subsection, 
     in computing a number of days in either House, there shall be 
     excluded any day on which the House is not in session.
       (b) Rules of House of Representatives and Senate.--This 
     section is enacted by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such this 
     section is deemed to be a part of the rules of each House, 
     respectively, but applicable only with respect to the 
     procedure to be followed in that House in the case of a joint 
     resolution, and this section supersedes other rules only to 
     the extent that this section is inconsistent with such rules; 
     and
       (2) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner and 
     to the same extent as in the case of any other rule of that 
     House.
                                  ____


     Remarks by Senator Nancy Landon Kassebaum on the Job Training 
                       Consolidation Act of 1994

       The Problem: According to the General Accounting Office, 
     the federal government currently oversees 154 job training 
     programs, administered by 14 different federal agencies, for 
     a total cost of almost $25 billion. This patchwork system is 
     fragmented, duplicative, ineffective, and confusing to job-
     seekers and training-providers alike. For example, there are 
     34 separate literacy programs for the disadvantaged alone. 
     Conflicting eligibility and income requirements add to the 
     barriers states face in providing assistance to job-seekers.
       The Objective: The Job Training Consolidation Act of 1994 
     will take the existing job training system and ``wipe the 
     slate clean.'' The bill is more far-reaching than the 
     administration's Reemployment Act of 1994, in that it 
     provides a framework for overhauling the entire system rather 
     than dealing only with the handful of programs serving 
     dislocated workers. The goal is a single, coherent approach 
     to employment training--to assist all job-seekers in entering 
     the work force, gaining basic skills, or retraining for new 
     jobs.
       The Legislation: The approach will be two-fold. First, a 
     mechanism will be established at the federal level to 
     consolidate existing programs in order to develop a single 
     system of employment and training. Second, broad waivers will 
     be granted immediately to allow maximum flexibility for 
     coordination of programs at the state and local levels, with 
     the active involvement of the private sector.
       Specifically, this legislation will create a public-private 
     partnership charged with developing a national policy and 
     goals for a new comprehensive system. The partnership will 
     oversee the consolidation and dismantling of existing 
     programs, while laying the groundwork for comprehensive 
     reform. Such reform will include:
       Shifting primary responsibility to the states, and in turn 
     to local communities, for design and implementation of job 
     training systems geared to serve local labor markets.
       Requiring the involvement of employers in the choice and 
     design of the types of skills and training needed in each 
     local job training program.
       Creating an integrated system that assures job-seekers will 
     receive information about all available employment and 
     training services--no matter where they first apply for help.
       Eliminating ineffective and duplicative programs.
       Providing new standards for determining program 
     effectiveness.
       In addition, a national on-line labor market information 
     system will be created to disseminate job market information 
     as well as best practices for providing the most effective 
     training services.
       Finally, the legislation will grant to the states broad 
     waivers for the 12 largest federal job training programs, to 
     allow consolidation to begin immediately at the state and 
     local levels. The waivers will be in effect during the two-
     year transition period leading to final implementation of 
     comprehensive reform.

  Mr. KERREY. Mr. President, let me, first of all, commend the 
distinguished Senator from Kansas [Mrs. Kassebaum].
  There are two things I call to the attention of my colleagues about 
this legislation that I believe are extremely important. Indeed, it is 
constantly mentioned by the American people that they want action in 
both of these areas.
  The first is they look to Washington, DC, and they see a lot of 
waste. They see a lot of duplication of effort. I suspect most of our 
colleagues this week were visited by mayors who came to town talking 
about unfunded mandates and the difficulty of getting Federal programs 
to work.
  This piece of legislation deals with that head on. There are 154 job 
training programs, as the distinguished Senator from Kansas has just 
said, that are administered by 14 different Federal agencies. Not only 
is the total cost of this effort, approximately $25 billion, but having 
these efforts in all these different agencies, 14 different agencies, 
makes it difficult for States and localities to do the very important 
work of job training, which is the second thing about this legislation 
that I call to the attention of my colleagues.
  This week the President invited the G-7 leaders to come to Detroit to 
talk about what do we do as industrial countries to increase the number 
of high-paying jobs in America and the rest of the industrial world. It 
is a tremendous challenge. It is not an easy challenge for us to meet. 
But the simplest way, in my judgment, to discover what it is we need to 
do is, to find those high-paying jobs and ask yourself what do these 
individuals have that are different from people who are earning less 
money.
  Mr. President, every single time that you find yourself in that 
situation, the answer to that question is they have higher skills 
because they had training that enabled them to do exactly what that job 
requires.
  That is a difficulty that we have today, Mr. President, with the 
current division of responsibility between 14 different agencies, and 
the lack of flexibility that States have and that localities have in 
being able to tailor the effort for the particular requirement of the 
job.
  We have had example after example. I have talked to Nebraska people 
who are involved with job training, the Nebraska members of the Chamber 
of Commerce, the people who are involved in job service, people who are 
involved in the Job Training Partnership Act. Over and over what they 
say is they will find themselves in a situation that they know what 
they need to do, they know exactly what it is that needs to be done, 
but the Federal regulations do not allow them to do it. They find 
themselves increasingly frustrated with the task at hand.
  Mr. President, all of us who have been involved in politics have 
occasionally had to answer the question, well, why do you do it? What 
is there in this effort of giving speeches on the floor and raising 
money for reelection campaigns and all the travel and separation from 
family that occurs as a consequence of this work? Why would anybody 
want to get involved with politics?
  I see in the gallery some young people who are here visiting 
Washington who may themselves be asking that very question.
  Mr. President, in my 9 years of being involved as a political 
representative, first as Governor and now as Senator, the most 
satisfying moment occurs when I know that as a consequence of 
Government's effort some individuals have increased their skills and 
can improve their capacity to do something. As a result of that effort, 
they now find themselves not just with a job, but a job that provides 
them with some sense of dignity, some sense of purpose.

  Mr. President, I got out of high school in 1961 in Lincoln, NE. In 
1961 you could graduate from high school and you could get a job in 
Lincoln working for Goodyear, working for Burlington Northern, working 
for Cushman, working for Western Electric, working at AT&T at a 
manufacturing job. There were lots of jobs out there, Mr. President. 
And in 1961 the rule was you could go get a job, get married, support a 
family on that wage, you did a couple of years in the service, and when 
you got back from the service your work was waiting for you there, and 
you expected to be there for 40 or 45 years. All that was really 
required in 1961 was a willingness to work hard. A strong back was 
about all that it took in 1961.
  Well, today that is not the case. There are not very many high-
paying, low-skill jobs left in America. And so this job training effort 
is extremely important and may be one of the most important things that 
we are doing with taxpayer dollars. It may be one of the most 
important, one of the most satisfying things we can do with our taxes 
is to help individuals increase their skills so they are able to get 
the high-paying job.
  Mr. President, I am proud to be an original cosponsor of this 
legislation. I think it is extremely important both from the standpoint 
of reducing waste, making this Government operate better, showing the 
taxpayers we are vigilant to make certain their money is being well 
spent.
  I also believe it is extremely important because job training is the 
answer to the question of how do we create high-paying jobs in America. 
The answer is that we have to have site-specific training. We have to 
have training related to that business when they bring that new 
manufacturing equipment on line. They have to have the training effort 
there so the individuals can increase their skills to be able to handle 
new, modern, more complicated machinery.
  So I hope that this piece of legislation is seen by the 
administration as a constructive effort to do precisely what the Vice 
President and the President have been talking about; streamlining the 
Government, making its performance review--in fact, increase the 
performance of our Government. But equally important, I hope the 
administration sees this legislation as a way to make job training work 
and work for the purpose of increasing the skills of Americans and 
increasing the numbers of high-paying jobs in this country.
  Mr. DURENBERGER. Mr. President, I am proud to join today with the 
distinguished ranking member of the Labor and Human Resources 
Committee, Senator Kassebaum, my friend and colleague from Nebraska, 
Senator Kerrey, and Senator Chafee, in introducing the Job Training 
Consolidation Act of 1994.
  The Job Training Consolidation Act is a bold, necessary, thoughtful, 
and very serious attempt to reinvent the labyrinth of Federal programs 
that masquerades today as our Nation's reemployment and job training 
system.
  Senator Kassebaum has already described this initiative in some 
detail. I would just like to expand on some of the points she has made, 
and discuss my own reasons for supporting this legislation. In 
particular, I want to highlight the reasons I have decided to join with 
Senator Kassebaum and Senator Kerrey to support this initiative--
instead of the administration's Reemployment Act--as the starting point 
for reshaping the hodgepodge of current training and income assistance 
programs into a coherent national system for reemployment.
  Let me begin by commending the Clinton administration--and especially 
Labor Secretary Robert Reich--for recognizing that our Nation's job 
training programs need fixing, and for putting this issue high on our 
national agenda. According to the General Accounting Office, there are 
currently over 150 Federal job training programs administered by 14 
different Federal departments and independent agencies costing nearly 
$25 billion. These programs do not function as a comprehensive, 
cohesive system, but often operate in isolation. This fragmented system 
is duplicative, ineffective, costly, and confusing to jobseekers and 
training providers alike. Conflicting eligibility and income 
requirements add to the barriers States face in providing assistance.
  The administration's Reemployment Act, which will be introduced 
sometime this week, is a significant first step down the long road to 
reform.
  Mr. President, I have a great deal of respect for what Secretary 
Reich has done to bring this issue to our attention. I have made sure 
that President Clinton and Secretary Reich know of my interest in 
reforming our Nation's job training and income support programs.
  I hope to build on my own strong record of collaboration with the 
administration on education and job training issues--such as student 
loan reform, Goals 2000, the school-to-work and national service bills, 
and the Elementary and Secondary Education Act--to help move 
fundamental job training reform legislation through Congress this year.
  I know there are many people of good will on both sides of the aisle 
in this body--including Senator Kassebaum and Senator Kerrey--who share 
my goals. I can only say that I hope all parties will come to the table 
with sincerity, honesty, creativity, and the willingness to look beyond 
the margins of their own legislation to get something done. We owe that 
to the millions of American people for whom job training and income 
support are a lifeline.
  In starting this debate, the administration has given us an 
opportunity to reform the crazy quilt of Federal job training programs 
by developing an integrated national reemployment strategy. It is an 
opportunity we cannot afford to pass up.
  I support much of what is in the administration's Reemployment Act. 
The Reemployment Act would consolidate six existing job training 
programs under the Department of Labor's jurisdiction, and set up one-
stop career centers where workers would receive job assistance 
services, training, and information about other job opportunities at a 
single entry point.
  The bill would institute early identification programs for people at 
risk of becoming long-term unemployed, and provide better quality labor 
market information to jobseekers.
  Perhaps most importantly, it recognizes that the unemployment 
compensation system must be modernized to deal more effectively with 
structural dislocation as well as temporary layoffs caused by cyclical 
economic downturns.
  The administration's Reemployment Act is a good start. But, as the 
Job Training Consolidation Act we are introducing today recognizes, it 
is only a start. I believe we must go farther if we are to truly serve 
the needs of American workers and businesses.
  The Job Training Consolidation Act will allow us to wipe the slate 
clean and develop a single, coherent U.S. job training and employment 
strategy which shifts primary responsibility for reemployment services 
to the States and local communities. That's where it belongs.
  This approach is twofold. First, the legislation would establish a 
national commission to formulate a cohesive reemployment strategy and 
report its recommendations to Congress within 2 years. Second, the 
legislation will grant broad waivers to the States from the 12 largest 
Federal job training programs, to allow coordination to begin 
immediately at the State and local levels.
  I want to make two things clear. First, I have decided to support the 
Job Training Consolidation Act as the starting point for reform. I 
believe that any reform legislation we ultimately pass will look very 
different from both the administration's Reemployment Act and this 
legislation.
  Second, I am supporting the Job Training Consolidation Act not 
because the administration's bill goes too far, but because it does not 
go far enough. The administration's Reemployment Act addresses problems 
with only 6 of the current 154 training programs--representing less 
than one-third of the Federal dollars spent on job training.
  Reforming Federal job training programs in a piecemeal fashion will 
only add to the existing problems of client access, differing 
eligibility and reporting requirements, and fragmented lines of 
authority for operating programs. Unless we make a serious effort to 
integrate various reform initiatives, we will lose an important 
opportunity to consolidate and improve the programs in ways that 
benefit both taxpayers and the customers of job training services.
  Mr. President, let me briefly discuss the three main principles that 
will guide my approach to job training and income support reform this 
year.
  First, I believe we need to convert the current patchwork of Federal 
job training programs into a cohesive, coherent, comprehensive, 
customer-friendly reemployment system.
  Second, any reform initiative ought to put responsibility and 
accountability where they belong--at the State and local level. There 
has been a great deal of evidence in recent years that our current 
Federal job training programs are ineffective and unable to adequately 
meet the needs of their clients. Instead of simply building on the 
current Federal job training system, we need to make States and local 
communities full partners in developing and implementing reemployment 
services tailored to the needs of their local labor markets.
  In an attempt to improve local service delivery of Federal employment 
training services, several States and communities, including those in 
Minnesota, have taken the initiative in recent years to reorganize 
their service delivery system to better coordinate services at the 
local level. But their efforts have been hampered by differences in 
Federal program requirements, such as differences in eligibility 
criteria and planning and budgeting cycles.
  Therefore, we should recognize that perhaps the most valuable 
contribution the Federal Government can make to job training reform is 
to get out of the way of State and local reform efforts.
  Third, I believe strongly that any new reemployment system must be 
coordinated with current welfare reform and student aid reform efforts. 
Since Federal welfare programs, student aid, and job training programs 
often serve the same disadvantaged adult population, I believe that 
reform efforts in all three of these areas should be coordinated as 
they are developed so as to minimize problems for clients, States, and 
localities.
  As we coordinate these reform efforts, our emphasis should be on 
prevention. We must do more to help people stay off public assistance 
in the first place. And for those who do need assistance, we should 
make sure that programs are designed to get them into the work force--
or back into the work force--as quickly as possible.
  Mr. President, the Job Training Consolidation Act is not perfect. It 
lacks, for example, the important income support reform proposals 
contained in the administration's bill. However, at this stage, it is 
more consistent with my broader approach to reemployment reform, as 
highlighted by the principles I have just outlined.
  Finally, Mr. President, let me say that I do realize that many 
programs I have supported in the past may be significantly redesigned, 
or even repealed, under the Job Training Consolidation Act.
  In this regard, it is important to point out that there are 
safeguards in the bill to ensure that populations served under existing 
programs will continue to be served under any new program. For example, 
States will not be able to obtain waivers from existing programs under 
the bill unless they demonstrate that populations served under those 
programs are being served.
  It is also important to point out that the bill does not reduce 
overall funding for U.S. job training programs. It merely folds these 
programs into a comprehensive program. By reducing costs due to program 
inefficiencies, paperwork, bureaucracy, and overlap, I believe we will 
make more money available directly to people who need training.
  I believe that everyone will be served better by this reform effort. 
It's clear that the current programs are not up to par. To take just 
one example: According to the GAO, the Nation's $2 billion-a-year 
vocational rehabilitation program serves only a small proportion of 
potential beneficiaries, and the gains achieved by disabled 
participants fade substantially after 2 years.
  As ranking member of the Subcommittee on Disability Policy, let me 
assure you that I would never support this initiative if I believed it 
would have the effect of reducing current support to individuals with 
disabilities and others who are disadvantaged.
  I believe the Vocational Rehabilitation Act and other programs would 
better serve targeted populations if more flexibility were given to 
States and local communities.
  That's the guiding spirit behind the legislation we are introducing 
today. As I mentioned earlier, I hope to build on my past record of 
cooperation with the administration to bridge the differences between 
the Reemployment Act and the broader approach that Senator Kerrey, 
Senator Kassebaum and I have endorsed in the Job Training Consolidation 
Act.
  Mr. CHAFEE. Mr. President, today our distinguished colleague, the 
Senator from Kansas, [Mr. Kassebaum], introduced the Job Training 
Consolidation Act of 1994.
  As a ranking Republican on the Labor and Human Resources Committee, 
Senator Kassebaum has crafted what, in my judgment, is a very 
thoughtful bill. What it does is consolidates the confusing array of 
Federal job training programs, some 154 separate programs in total. 
Importantly, the legislation provides immediate flexibility to States 
and localities to use Federal job training funds totaling some $25 
billion a year. This is astonishing the amount of money we are putting 
into these job training programs, $25 billion a year. What this bill 
does is it provides, as I say, the immediate flexibility to States and 
localities to use these job training funds on programs and priorities 
of the design of the States and localities.
  It also provides for the creation of a national commission with a 
strong input from the private sector--I want to stress that a strong 
input from the private sector--to develop a single coordinated system 
of employment and training. The legislation would consolidate about 60 
programs, scattered across a dozen statutes, without requiring any 
additional spending, any additional new taxes, or any additional new 
bureaucracy.
  While much of the country has begun to enjoy the fruits of a growing 
economy, my own State of Rhode Island continues to suffer the effects 
of a nagging recession. In January, 10.5 percent of Rhode Island's 
labor force, seasonally adjusted, was out of work. By contrast, the 
State experienced a 3-percent unemployment rate for all of 1988.
  While the most recent jump in Rhode Island's unemployment is partly 
the result of new Federal methods for counting joblessness, much of our 
problem is due to longer term economic dislocation in defense and other 
manufacturing sectors. Many of the jobs Rhode Islanders have lost 
during this downturn are not coming back. Now, more than ever, we need 
a coherent, cost effective system for retraining dislocated workers. 
This bill takes an important step in that direction.
  A recent report by the General Accounting Office [GAO] found that 
American taxpayers do not get fair value for the $25 billion we expend 
annually on job training. The GAO report audited 62 training programs 
and discovered that less than half ever bothered to find out whether or 
not participants found jobs. We have very little data on the 
effectiveness of Federal job training programs, and even less 
accountability. In a period of scarce budgetary resources and growing 
demands for Federal assistance, this situation is intolerable.
  Let me turn to the administration's efforts in this area for a 
moment. I comment the Secretary of Labor, Robert Reich, for the 
comprehensive legislation he has developed to address the problem of 
structural unemployment. The administration's Reemployment Act is a 
very thoughtful proposal that correctly seeks to transform our present 
Federal-State unemployment insurance program into a reemployment 
system.
  However, upon review, I have a number of concerns about the proposal, 
including the financing, the broad reliance on untested retraining 
program, and the scope of the consolidation effort. I also have some 
reservations about the bill's impact on the existing unemployment 
insurance system. State officials in Rhode Island have also reviewed 
the proposal, and share many of these concerns, particularly with 
respect to the fiscal implications, and the effects on the present 
employment and training system in our State.
  Despite these concerns, I stand ready as a member of the Finance 
Committee to work on a bipartisan basis with the administration, and 
with my Senate colleagues to enact legislation this year to address the 
problem of long term structural unemployment. It is absolutely 
imperative that we develop a comprehensive national strategy as soon as 
possible to give dislocated workers the training, employment 
assistance, and other resources they need to secure their futures.
  Many citizens in my State of Rhode Island have exhausted their 
regular unemployment benefits, and do not have access to the training 
and employment services they need to find the high quality jobs they 
deserve. Clearly, our present unemployment insurance system falls short 
of addressing the problems of dislocated workers. Both the 
administration and Kassebaum bills offer us much hope for meaningful 
action to address this serious problem this year, and I intend to work 
in earnest toward that end.
                                 ______

      By Mr. KOHL:
  S. 1944. A bill to increase and extend criminal and other penalties 
for health care fraud and abuse, and for other purposes; read the first 
time.
  S. 1947. A bill to increase criminal penalties for health care fraud, 
and for other purposes; to the Committee on the Judiciary.


                   HEALTH CARE ANTI-FRAUD LEGISLATION

  Mr. KOHL. Mr. President, I rise to introduce two bills: the Health 
Care Anti-Fraud Act of 1994 and the Health Care Fraud and Abuse Act of 
1994. These bills would expand current fraud and abuse laws to cover 
fraud against private payers, and increase existing civil and criminal 
fraud and abuse penalties.
  Mr. President, this promises to be a historic Congress, from which we 
hope a legacy of important health reform legislation will emerge. As we 
all know, the skyrocketing costs of health care has much to do with why 
we are working so hard to fashion meaningful reform. One of the reasons 
that our health care costs are as high as they are is because our 
system is being ripped-off daily by those who see health care as a 
giant game: A game in which there are few rules and the winner is the 
one who manages to dupe the Government, private insurance companies, 
and individual Americans into paying the most money.
  The General Accounting Office estimates that up to 10 percent of our 
health care dollars--up to $100 billion annually--are lost to fraud and 
abuse. Even if this number is exaggerated by 50 percent--even if the 
amount of fraud and abuse only totals $50 billion--this is a staggering 
amount. In a day and age when we are struggling to contain health care 
costs and stretch our resources to cover millions of Americans who now 
go without insurance, we must increase our efforts to root out the 
fraud and abuse that infects our health care system.
  Mr. President, Federal law enforcement officials have already begun 
mounting a vigorous battle against health care fraud. In 1993, the 
Federal Government collected more than $177 million in health care 
fraud penalties and fines. $100 million of that total came from one 
company alone that was systematically looting the Medicare and Medicaid 
programs on a national scale.
  But despite efforts to date, there is still much more for us to do if 
we are going to deter health care fraud. We know for a fact that there 
are still thousands of dishonest providers in the United States who 
continue to pilfer our national health care pocketbook, playing games 
with charges, billing codes, and unnecessary tests and procedures. Only 
last week, a report released by the Wisconsin Legislative Audit Bureau 
uncovered troubling examples of transportation vendors overcharging 
Medicaid, and charging for services that were never even rendered. As 
Congress contemplates health care reform, we must also reform our fraud 
and abuse laws to better target those who see the rules and regulations 
governing the delivery of health care in this country as little more 
than negotiable obstacles.
  Toward this end, I am introducing today two simple, effective, and 
straightforward bills which together will help combat health care 
fraud.
  First and foremost, this legislation would take our existing fraud 
and abuse laws, which at present protect only the Medicare and Medicaid 
programs, and extend their reach to encompass private insurance 
arrangements as well. The Federal Government currently accounts for 
approximately 30 percent of U.S. health care spending, and the core 
elements of our existing health care fraud laws only protect against 
conduct that defrauds the Government. but what about the other 70 
percent of our health care spending?
  It is time that we send the message that the Federal Government will 
not tolerate fraud and abuse in any health care transaction, even if 
the target of the fraud is a private payer. No matter who appears to be 
the victim of fraud and abuse, all Americans end up paying the price 
when costs and premiums skyrocket as a result.
  Second, and equally important, this legislation will substantially 
increase the criminal and civil penalties for fraudulent conduct so 
that unscrupulous health care providers have greater reason to think 
twice before attempting to cheat the system. Existing civil monetary 
penalties will be more than doubled under this legislation. And 
criminal penalties will be expanded to include treble damages and to 
provide for stiff prison sentences when fraud results in physical harm 
to a patient. As a result of these modifications, our health care fraud 
laws will pack a more powerful deterrent punch.
  This bill would also make it easier for courts to impose community 
service obligations on those who have violated the health care fraud 
laws. Those who defraud society's efforts to deliver one of its most 
important public goods should be made to serve society and contribute 
to that good when they are caught.
  At the same time, this legislation would give health care providers 
an incentive to come clean and voluntarily disclose violations of the 
law to Federal authorities. In exchange for such disclosure, providers 
would be subject to substantially reduced penalties. Our experience in 
other areas strongly suggests that a voluntary disclosure program of 
this type will encourage providers to police themselves more 
rigorously, foster a culture of compliance and respect for the law, and 
ultimately increase the Federal Government's monetary recoveries.
  Expanding and strengthening the fraud laws will not, however, mean 
much if the Federal Government does not have the resources necessary to 
police the health care industry properly. The fact is that laws 
unenforced are laws ignored. To promote a respect for the law, 
therefore, we must commit to putting more health care fraud 
investigators on the street.
  This bill would authorize $100 million in funding over 4 years to 
allow the Federal Government to expand its anti-fraud efforts. There 
can be no question that this is money well spent. Each dollar spent on 
health care fraud investigations has yielded more than 4 dollars in 
real, money-in-the-bank recoveries to the Government. With health care 
reform around the corner, this is not the time to be penny-wise and 
pound-foolish.
  As we all know, Mr. President, there are many tough questions that 
need to be asked and answered during the health care reform process. 
The issue of health care fraud, by contrast, is a relatively 
straightforward one. The legislation introduced today offers an 
uncontroversial, but meaningful opportunity to turn up the heat in our 
battle against fraud and abuse--no matter which broader health reform 
options the Congress ultimately chooses to enact. I look forward to 
working with my colleagues on this problem in the months to come.
  Mr. President, I ask unanimous consent that the complete text of 
these bills be printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record as follows:

                                S. 1944

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Health Care Fraud and Abuse 
     Act of 1994''.

     SEC. 2. EXPANSION OF CIVIL AND CRIMINAL MONETARY SANCTIONS.

       (a) Civil Sanctions.--Section 1128A of the Social Security 
     Act (42 U.S.C. 1320a-7a) is amended--
       (1) in subsections (a) and (b), by striking ``$2,000'' each 
     place it appears and inserting ``$5,000'',
       (2) in the second sentence of subsection (a), by striking 
     ``not more than twice'' and inserting ``not more than three 
     times'', and
       (3) by adding at the end the following new subsection:
       ``(m)(1) The maximum civil monetary penalty amounts 
     specified in subsections (a) and (b) shall be adjusted for 
     inflation as provided in this subsection.
       ``(2) Not later than December 1, 1999, and December 1 of 
     each fifth calendar year thereafter, the Secretary shall 
     prescribe and publish in the Federal Register a schedule of 
     maximum authorized penalties that shall apply for violations 
     that occur after January 1 of the year immediately following 
     such publication.
       ``(3) The schedule of maximum authorized penalties shall be 
     prescribed by increasing each of the amounts specified in 
     subsections (a) and (b) by the cost-of-living adjustment for 
     the preceding five years. Any increase determined under the 
     preceding sentence shall be rounded to the nearest multiple 
     of $1,000.
       ``(4) For purposes of this subsection:
       ``(A) The term `cost-of-living adjustment for the preceding 
     five years' means the percentage by which--
       ``(i) the Consumer Price Index for the month of June of the 
     calendar year preceding the adjustment, exceeds
       ``(ii) the Consumer Price Index for the month of June 
     preceding the date on which the maximum authorized penalty 
     was last adjusted under this subsection.
       ``(B) The term `Consumer Price Index' means the Consumer 
     Price Index for all urban consumers published by the 
     Department of Labor.''.
       (b) Treble Damages for Criminal Sanctions.--Section 1128B 
     of the Social Security Act (42 U.S.C. 1320a-7b) is amended by 
     adding at the end the following new subsection:
       ``(f) In addition to the fines that may be imposed under 
     subsection (a), (b), or (c), any individual found to have 
     violated the provisions of any of such subsections may be 
     subject to treble damages.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1995.

     SEC. 3. APPLICATION OF FEDERAL HEALTH ANTI-FRAUD AND ABUSE 
                   SANCTIONS TO ALL FRAUD AND ABUSE AGAINST ANY 
                   HEALTH BENEFIT PLAN.

       (a) Civil Monetary Penalties.--Section 1128A of the Social 
     Security Act (42 U.S.C. 1320a-7a) is amended as follows:
       (1) In subsection (a)(1), in the matter before subparagraph 
     (A), by inserting ``or of any health benefit plan,'' after 
     ``subsection (i)(1)),''.
       (2) In subsection (b)(1)(A), by inserting ``or under a 
     health benefit plan'' after ``title XIX''.
       (3) In subsection (f)--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) With respect to amounts recovered arising out of a 
     claim under a health benefit plan, the portion of such 
     amounts as is determined to have been paid by the plan shall 
     be repaid to the plan.''.
       (4) In subsection (i)--
       (A) in paragraph (2), by inserting ``or under a health 
     benefit plan'' before the period at the end, and
       (B) in paragraph (5), by inserting ``or under a health 
     benefit plan'' after ``or XX''.
       (b) Crimes.--Section 1128B of the Social Security Act (42 
     U.S.C. 1320a-7b) is amended as follows:
       (1) In the heading, by adding at the end the following: 
     ``or health benefit plans''.
       (2) In subsection (a)(1)--
       (A) by striking ``title XVIII or'' and inserting ``title 
     XVIII,'', and
       (B) by adding at the end the following: ``or a health 
     benefit plan (as defined in section 1128(i)),''.
       (3) In subsection (a)(5), by striking ``title XVIII or a 
     State health care program'' and inserting ``title XVIII, a 
     State health care program, or a health benefit plan''.
       (4) In the second sentence of subsection (a)--
       (A) by inserting after ``title XIX'' the following: ``or a 
     health benefit plan'', and
       (B) by inserting after ``the State'' the following: ``or 
     the plan''.
       (5) In subsection (b)(1), by striking ``title XVIII or a 
     State health care program'' each place it appears and 
     inserting ``title XVIII, a State health care program, or a 
     health benefit plan''.
       (6) In subsection (b)(2), by striking ``title XVIII or a 
     State health care program'' each place it appears and 
     inserting ``title XVIII, a State health care program, or a 
     health benefit plan''.
       (7) In subsection (b)(3), by striking ``title XVIII or a 
     State health care program'' each place it appears in 
     subparagraphs (A) and (C) and inserting ``title XVIII, a 
     State health care program, or a health benefit plan''.
       (8) In subsection (d)(2)--
       (A) by striking ``title XIX,'' and inserting ``title XIX or 
     under a health benefit plan,'', and
       (B) by striking ``State plan,'' and inserting ``State plan 
     or the health benefit plan,''.
       (c) Health Benefit Plan Defined.--Section 1128 of the 
     Social Security Act (42 U.S.C. 1320a-7) is amended by 
     redesignating subsection (i) as subsection (j) and by 
     inserting after subsection (h) the following new subsection:
       ``(i) Health Benefit Plan Defined.--For purposes of 
     sections 1128A and 1128B, the term `health benefit plan' 
     means a health benefit program other than the medicare 
     program, the medicaid program, or a State health care 
     program.''.
       (d) Conforming Amendment.--Section 1128(b)(8)(B)(ii) of the 
     Social Security Act (42 U.S.C. 1320a-7(b)(8)(B)(ii)) is 
     amended by striking ``1128A'' and inserting ``1128A (other 
     than a penalty arising from a health benefit plan, as defined 
     in subsection (i))''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect January 1, 1995.

     SEC. 4. CIVIL MONETARY PENALTIES INCLUDED IN ANTI-KICKBACK 
                   SANCTIONS.

       (a) In General.--Section 1128A(a) of the Social Security 
     Act (42 U.S.C. 1320a-7a(a)), as amended by section 2(a), is 
     amended--
       (1) by striking ``or'' at the end of paragraph (1)(D);
       (2) by striking ``, or'' at the end of paragraph (2) and 
     inserting a semicolon;
       (3) by striking the semicolon at the end of paragraph (3) 
     and inserting ``; or'';
       (4) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) carries out any activity in violation of paragraph 
     (1) or (2) of section 1128B(b);'';
       (5) by striking ``than $5,000'' and all that follows 
     through the period and inserting ``than, in cases under 
     paragraph (1) or (2), $5,000 for each item or service, in 
     cases under paragraph (3), $15,000 for each individual with 
     respect to whom false or misleading information is given, and 
     in cases under paragraph (4), $10,000 for each violation.''; 
     and
       (6) by striking ``than three times'' and all that follows 
     through the period and inserting ``than, in cases under 
     paragraph (1) or (2), three times the amount claimed for each 
     such item or service in lieu of damages sustained by the 
     United States or a State agency because of such claim, and in 
     cases under paragraph (4), twice the total amount of the 
     remuneration offered, paid, solicited, or received in 
     violation of paragraph (1) or (2) of section 1128B(b).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect January 1, 1995.

     SEC. 5. VOLUNTARY DISCLOSURE PROGRAM.

       In consultation with the Attorney General of the United 
     States, the Secretary of Health and Human Services shall 
     publish proposed regulations no later than 9 months after the 
     date of the enactment of this Act, and final regulations no 
     later than 18 months after such date of enactment, 
     establishing a program of voluntary disclosure that would 
     facilitate enforcement of sections 1128A and 1128B of the 
     Social Security Act (42 U.S.C. 1320a-7a and 1320a-7b) and 
     other relevant provisions of Federal law relating to health 
     care fraud and abuse. Such program should promote and provide 
     incentives for disclosures of potential violations of such 
     sections and provisions by providing that, under certain 
     circumstances, the voluntary disclosure of wrongdoing would 
     result in the imposition of penalties and punishments less 
     substantial than those that would be assessed for the same 
     wrongdoing if voluntary disclosure did not occur.

     SEC. 6. EXPANSION OF HEALTH CARE FRAUD INVESTIGATIVE 
                   RESOURCES.

       There are authorized to be appropriated for the hiring of 
     additional personnel in the Department of Health and Human 
     Services Office of the Inspector General $25,000,000 for each 
     of fiscal years 1994, 1995, 1996, and 1997 to sustain and 
     expand the investigation of health care fraud.

                                S. 1947

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Health Care Anti-Fraud Act 
     of 1994''.

     SEC. 2. CRIMINAL PENALTIES FOR HEALTH CARE FRAUD.

       (a) Offense.--Part I of title 18, United States Code, is 
     amended by inserting after chapter 50A the following:

                    ``CHAPTER 50B--HEALTH CARE FRAUD

``Sec.
``1101. Health care fraud.
``1102. Definitions.

     ``Sec. 1101. Health care fraud

       ``(a) In General.--Whoever, in or affecting interstate 
     commerce, knowingly--
       ``(1) executes, or attempts to execute, a scheme or 
     artifice to defraud to obtain a health care payment; or
       ``(2) presents to any person any statement as part of, or 
     in support of, a claim for a health care payment, knowing 
     that such statement contains any false or misleading 
     information concerning any fact or thing material to such 
     claim;
     shall be fined under this title or imprisoned not more than 
     10 years, or both.
       ``(b) Aggravated Offenses.--In an offense under subsection 
     (a) of this section--
       ``(1) if the offender knowingly or recklessly causes 
     serious bodily injury to an individual or knowingly or 
     recklessly endangers the life of a person, the offender shall 
     be fined under this title or imprisoned not more than 15 
     years, or both; and
       ``(2) if the offender knowingly or recklessly causes the 
     death of an individual, the offender shall be fined under 
     this title or imprisoned not more than 25 years, or both.

     ``Sec. 1102. Definitions

       ``As used in this chapter--
       ``(1) the term `health care payment' means a payment for 
     health care services or health care products, or the right to 
     have a payment made by a third party payer for specified 
     health care services or products; and
       ``(2) the term `third party payer' means any person, public 
     or private, who undertakes to indemnify another against loss 
     arising from a contingent or unknown event.''.
       (b) Clerical Amendment.--The table of chapters at the 
     beginning of part I of title 18, United States Code, is 
     amended by inserting after the item relating to chapter 50A 
     the following new item:

``50B. Health care fraud...................................1101.''.....

       (c) Effective Date.--The amendments made by this section 
     shall take effect January 1, 1995.

     SEC. 3. IDENTIFICATION OF COMMUNITY SERVICE OPPORTUNITIES.

       (a) In General.--Chapter 50B of title 18, United States 
     Code, as added by section 2, is amended by inserting after 
     section 1102 the following new section:

     ``Sec. 1103. Indentification of community service 
       opportunities

       ``The Attorney General shall--
       ``(1) in consultation with the Secretary of Health and 
     Human Services and State and local health care officials, 
     identify opportunities for the satisfaction of community 
     service obligations that a court may impose upon the 
     conviction of an offense under section 1101 or an offense 
     under section 1128B of the Social Security Act (42 U.S.C. 
     1320a-7b), and
       ``(2) make information concerning such opportunities 
     available to Federal and State law enforcement officers and 
     State and local health care officials.''.
       (b) Clerical Amendment.--The table of sections for such 
     chapter 50B is amended by adding at the end the following new 
     item:

``1103. Identification of community service opportunities.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1995.
                                 ______

      By Mr. HOLLINGS (by request):
  S. 1945. A bill to authorize appropriations for fiscal year 1995 for 
certain maritime programs of Department of Transportation, to amend the 
Merchant Marine Act, 1936, as amended, to revitalize the U.S.-flag 
merchant marine, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.


               MARITIME ADMINISTRATION AUTHORIZATION ACT

 Mr. HOLLINGS. Mr. President, today I am introducing, at the 
request of the administration, the Maritime Administration 
Authorization Act for fiscal year 1995.
  Title I of this bill contains the authorization of appropriations for 
the Maritime Administration [MarAd]. MarAd operates the U.S. 
Government-supported maritime promotion programs, such as the operating 
differential subsidy program, the title XI loan guarantee program for 
shipbuilding, and the U.S. Merchant Marine Academy.
  The second title of this bill, the Maritime Security and Trade Act of 
1994, is intended to lead to a much needed revitalization of the U.S. 
maritime industry. The administration's proposed plan, the Maritime 
Security Program, would provide assistance to support 52 ships for 10 
years. Beginning in fiscal year 1995, it would provide U.S.-flag 
vessels operating in the foreign trade with assistance as a means of 
making the vessels competitive in the world market.
  Maritime reform is vital to the continued existence of the U.S. 
merchant marine, which is so critical to our national interest. Over 
the last two decades, the U.S. maritime industry has been in a 
continuous state of decline. In fact, the largest American shipping 
companies, American President's Lines and SeaLand, applied last year to 
the Department of Transportation to reflag a substantial portion of 
their fleets in foreign countries. The companies have indicated that 
they will be obligated to lower their U.S. flags and replace them with 
the flags of convenience, and replace their U.S. citizen crews with 
foreign crews.
  I believe that this reflagging would be devastating not only to our 
economic security but also to our national defense. It is unthinkable 
to me that supplies to our troops may be carried on ships from so-
called outlaw nations in times of international conflict. Additionally, 
we cannot be in the position of relying on foreign ships to carry all 
of our imports and exports and thus be beholden to the trading 
practices of the countries in which these ships are flagged. How ironic 
it would be if the manufacturers and consumers of the only superpower 
in the world were to become embroiled in a trade war with a country 
that controls all of its shipping! Without a U.S.-flag commercial 
fleet, our manufacturers, importers, and exporters would be at the 
mercy of the trade practices of these nations.
  I appreciate the dedication that Secretary of Transportation Federico 
Pena and Adm. Albert Herberger, the Administrator of MarAd, have shown 
in trying to address the very serious decline in our maritime industry. 
They have put forward a bill for us to consider carefully, and the 
Commerce Committee will proceed to do so. We must find a way to 
stimulate and revitalize the U.S. maritime industry.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1945

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

    TITLE I--MARITIME ADMINISTRATION AUTHORIZATION OF APPROPRIATIONS

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Maritime Administration 
     Authorization Act for Fiscal Year 1995.''

     SEC. 102. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 
                   1995.

       Funds are authorized to be appropriated without fiscal year 
     limitation, as Appropriations Acts may provide for the use of 
     the Department of Transportation, for the fiscal year ending 
     September 30, 1995, as follows:
       (a) For payment of obligations incurred for operating-
     differential subsidy, not to exceed $214,356,000.
       (b) For expenses necessary for operations and training 
     activities, not to exceed $77,000,000, including reception 
     and representation expenses associated with graduation 
     functions at the Merchant Marine Academy at Kings Point, New 
     York.
       (c) For expenses necessary to acquire and maintain the 
     Ready Reserve Force surge shipping and resupply capability in 
     an advanced state of readiness, and for related programs, not 
     to exceed $250,000,000.
       (d) For the costs, as defined in section 502 of the Federal 
     Credit Reform Act of 1990, of guaranteed loans authorized by 
     Title XI of the Merchant Marine Act, 1936, as amended (46 
     App. U.S.C. 1271, et seq.), $50,000,000. In addition, for 
     administrative expenses related to loan guarantee commitments 
     under Title XI of the Merchant Marine Act, 1936, as amended 
     (46 App. U.S.C. 1271, et seq.), $4,000,000.

     SEC. 103. MERCHANT SHIP SALES ACT OF 1946 AMENDMENT.

       Section 11 of the Act of March 8, 1946 (50 App. U.S.C. 
     1744, is amended as follows:
       (a) by striking ``Secretary of the Navy,'' in subsection 
     (b)(2) and inserting ``Secretary of Defense,''.
       (b) by striking subsection (c) and redesignating subsection 
     (d) as subsection (c).

     SEC. 104. SUBMISSION OF REPORT ON CONDITION OF PUBLIC PORTS.

       Section 308(c) of Title 49, United States Code, is amended 
     by inserting ``even-numbered'' between ``each'' and ``year.''

         TITLE II--AMENDMENTS TO THE MERCHANT MARINE ACT, 1936

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Maritime Security and 
     Trade Act of 1994''.

     SEC. 202. MARITIME SECURITY PROGRAM.

       (a) Title VI of the Merchant Marine Act, 1936, as amended 
     (46 App. U.S.C. 1171 et seq.), is amended by deleting the 
     heading of Title VI, ``Operating-Differential Subsidy'' and 
     inserting a new heading and subheading as follows:

   ``TITLE VI--OPERATING-DIFFERENTIAL SUBSIDY AND MARITIME SECURITY 
                                PROGRAM.

             ``Subpart A--Operating-Differential Subsidy''.

       (b) Section 605(b) (46 App, U.S.C. 1175(b)) is amended to 
     read as follows:
       ``(b) No operating-differential subsidy shall be paid for 
     the operation of a vessel that is more than twenty-five years 
     of age, unless the Secretary of Transportation has 
     determined, before the enactment of the Maritime Security and 
     Trade Act of 1994, that it is in the public interest to grant 
     such financial aid for the operation of such vessel.''
       (c) Title VI of the Merchant Marine Act, 1936, as amended 
     (46 App. U.S.C. 1171 et seq.) is amended by adding a new 
     Section 616 following Section 615, to read as follows:
       ``Sec. 616. (a)(1) The Secretary of Transportation may 
     authorize a contractor operating a liner vessel and receiving 
     an operating-differential subsidy under Subpart A of this 
     title to construct, reconstruct, or acquire a liner vessel of 
     over five thousand deadweight tons worldwide to replace a 
     vessel that would reach the end of its subsidizable life 
     prior to the expiration of the contractor's operating-
     differential subsidy contract. The replacement vessel shall 
     be documented under chapter 121 of subtitle II of title 46, 
     United States Code.
       ``(2) A replacement liner vessel shall not be eligible for 
     operating-differential subsidy pursuant to Subpart A of this 
     title, and shall be limited to payments in the amounts set 
     forth in Subpart B of this title until the existing contract 
     pursuant to Subpart A terminates according to its terms.
       ``(b)(1) The Secretary of Transportation may authorize a 
     contractor operating a bulk cargo vessel and receiving 
     operating-differential subsidy under Subpart A of this title 
     to construct, reconstruct, or acquire a bulk cargo vessel of 
     over five thousand deadweight tons worldwide to replace a 
     vessel that would reach the end of its subsidizable life 
     prior to the expiration of the contractor's operating-
     differential subsidy contract. The replacement vessel shall 
     be documented under chapter 121 of subtitle II of title 46, 
     United States Code.
       ``(2) A replacement bulk cargo vessel shall continue to 
     receive an operating-differential subsidy under an existing 
     contract pursuant to Subpart A of this title until the 
     existing contract terminates according to its terms.
       ``(c) Liner vessels and bulk cargo vessels constructed 
     pursuant to subsections (a) and (b) of this section shall be 
     deemed to have been built in a domestic shipyard for the 
     purposes of section 610 of this Act: Provided, That the 
     provisions of section 607 of this Act shall not apply to 
     vessels constructed, reconstructed, or acquired pursuant to 
     subsections (a) and (b) of this section.
       ``(d) Any existing foreign-built liner vessel that is 
     acquired pursuant to subsection (a) of this section and 
     documented under chapter 121 of subtitle II of title 46, 
     United States Code, shall be less than five years of age at 
     the time of such documentation.
       ``(e) Any existing foreign-built bulk cargo vessel that is 
     acquired pursuant to subsection (b) of this section and 
     documented under chapter 121 of subtitle II of title 46, 
     United States Code, shall be less than five years of age at 
     the time of such documentation.
       ``(f) No authority granted by the Secretary of 
     Transportation to construct, reconstruct, or acquire vessels 
     pursuant to subsections (a) and (b) of this section may be 
     sold, assigned, conveyed, leased or otherwise transferred to 
     any other party, without the written consent of the Secretary 
     of Transportation pursuant to section 608 of this title.
       ``(g) Any repair or alteration necessary to bring a vessel, 
     which is constructed, reconstructed, or acquired pursuant to 
     subsections (a) and (b) of this section, into compliance with 
     parts B and C of subtitle II of title 46, United States Code, 
     or any regulations prescribed under those Parts, shall be 
     performed in a privately owned shipyard in the United 
     States.''
       (d) Title VI of the Merchant Marine Act, 1936, as amended 
     (46 App. U.S.C. 1171 et seq.) is amended by adding a new 
     Section 617 following the new Section 616, to read as 
     follows:
       ``Sec. 617. (a) After the date of enactment of the Maritime 
     Security and Trade Act of 1994, the Secretary of 
     Transportation shall not enter into any new contract for an 
     operating-differential subsidy under subpart A of this title.
       ``(b) Notwithstanding any other provision of this Act, any 
     operating-differential subsidy contract in effect under title 
     VI on the day before the date of enactment of the Maritime 
     Security and Trade Act of 1994:
       ``(1) shall continue in effect and terminate as set forth 
     in the contract, unless voluntarily terminated at an earlier 
     date by the persons (other than the United States Government) 
     that are parties to the contract; and
       ``(2) may not be renewed or extended.
       ``(c) After the date of enactment of the Maritime Security 
     and Trade Act of 1994, an owner or operator of a vessel 
     covered by an operating-differential subsidy contract under 
     subpart A of this title may operate such vessel in the 
     foreign commerce of the United States without restriction, 
     notwithstanding any other provision of this Act.
       ``(d) With respect to a liner vessel--
       ``(1) whose operator receives operating-differential 
     subsidy pursuant to a contract under this title, which is in 
     force on October 1, 1993, and if the Secretary approves the 
     replacement of such vessel with a comparable vessel, or
       ``(2) covered by an operating agreement under subpart B of 
     this title, and if the Secretary approves the replacement of 
     such vessel with a comparable vessel for inclusion in the 
     fleet established under Subpart B of title VI--

     such vessel may be transferred and registered under the flag 
     of an effective United States-controlled foreign flag, 
     notwithstanding any other provision of law: Provided, that 
     the vessel is available to be requisitioned by the Secretary 
     of Transportation pursuant to section 902 of this Act (46 
     App.U.S.C. 1242).''
       (e) Title VI of the Merchant Marine Act, 1936, as amended 
     (46 App. U.S.C. 1171 et seq.) is amended by adding a new 
     Subpart B to read as follows:

                 ``Subpart B--Maritime Security Program

       ``Sec. 650. Establishment of Fleet.
       ``(a) The Secretary of Transportation shall encourage the 
     establishment of a fleet of active, militarily useful, 
     privately-owned liner vessels to maintain an American 
     presence in international commercial shipping and meet 
     national defense and other security requirements. The fleet 
     shall consist of privately-owned, United States-flag liner 
     vessels for which there are in effect operating agreements 
     under this Subpart.
       ``(b) A liner vessel may not be included in the fleet 
     unless:
       ``(1) it is operated by an ``ocean common carrier'' as 
     defined in Section 3 of the Shipping Act of 1984 (46 App. 
     U.S.C. 1702);
       ``(2) it is a vessel that is fifteen years of age or less 
     on the date an operating agreement is entered into under 
     Section 651, unless the Secretary of Transportation, in 
     consultation with the Secretary of Defense, determines that 
     it is in the national interest to waive this requirement;
       ``(3) it is a vessel that is less than five years of age at 
     the time it is documented under chapter 121 of subtitle II of 
     title 46, United States Code, if it is foreign-built;
       ``(4) The Secretary of Transportation, after consultation 
     with the Secretary of Defense, determines that the vessel is 
     necessary to maintain a United States presence in 
     international commercial shipping or determines that the 
     vessel is militarily useful for meeting the sealift needs of 
     the United States with respect to national emergencies; and
       ``(5) the owner or operator of the vessel is a citizen of 
     the United States as set forth in section 651.
       Sec. 651. Operating Agreements.
       ``(a) The Secretary of Transportation shall require, as a 
     condition of including any vessel in the fleet, that the 
     owner or operator of the vessel enter into an operating 
     agreement with the Secretary of Transportation pursuant to 
     this section.
       ``(b) An operating agreement pursuant to this section shall 
     require that, during the period of the agreement:
       ``(1) each vessel covered by the operating agreement:
       ``(A) shall be operated exclusively in the foreign trade, 
     and
       ``(B) shall not be operated in the coastwise trade of the 
     United States or in mixed domestic and foreign trade; and
       ``(2) the owner or operator of a vessel covered by the 
     operating agreement shall have the vessel documented under 
     chapter 121 of subtitle II of title 46, United States Code, 
     and shall maintain that documentation.
       ``(c) An owner or operator of a vessel covered by an 
     operating agreement under this subpart may operate this 
     vessel in the foreign commerce of the United States without 
     restriction.
       ``(d)(1) The Secretary of Transportation is authorized to 
     enter into operating agreements, provided that the total does 
     not exceed $1,000,000,000 for the fiscal years 1995 through 
     2004.
       ``(2) An operating agreement pursuant to this section shall 
     provide that the Secretary of Transportation pay to the owner 
     or operator of each liner vessel that is included in the 
     operating agreement, an amount per vessel per year that does 
     not exceed $2,500,000, for fiscal years 1995 through 1997, 
     and does not exceed $2,000,000, for fiscal years 1998 through 
     2004. The amount per year paid to the owner or operator of a 
     liner vessel under an operating agreement pursuant to this 
     section shall be paid at the end of each month in equal 
     installments.
       ``(3) An amount of $1,000,000,000 is appropriated to carry 
     out this section.
       ``(e) In order to qualify for the annual payments under 
     this section, the owner or operator shall certify annually, 
     pursuant to regulations issued by the Secretary, that each 
     vessel covered by an operating agreement was operated in a 
     trade required by section 651(b)(1) for at least 320 days in 
     a fiscal year, including days during which the liner vessel 
     is drydocked, surveyed, inspected, or repaired.
       ``(f) Without regard to an operating agreement in effect 
     with an owner or operator of a liner vessel under this 
     section, the Secretary of Transportation shall not make any 
     payment under this section for a vessel with respect to any 
     period in which the vessel is--
       ``(1) subject to an operating-differential subsidy contract 
     under subpart A of title VI of this Act;
       ``(2) not operated or maintained in accordance with an 
     operating agreement under this subpart; or
       ``(3) more than twenty-five years of age.
       ``(g) With respect to payments under this section for a 
     vessel covered by an operating agreement, the Secretary of 
     Transportation--
       ``(1) shall not reduce any payment for the operation of a 
     vessel to carry military or other preference cargoes under--
       ``(A) Section 2631 of title 10, United States Code; or
       ``(B) Section 1241-1 of title 46, Appendix, United States 
     Code;
       ``(2) shall not make any payment for each day that a vessel 
     is engaged in transporting more than 5,000 tons of civilian 
     bulk preference cargoes pursuant to Sections 901(a), 901(b), 
     or 901b of this Act; and
       ``(3) shall reduce any payment for each day that a vessel 
     is engaged in transporting less than 5,000 tons of civilian 
     bulk preference cargoes pursuant to Sections 901(a), 901(b), 
     or 901b of this Act, by an amount which bears the same ratio 
     to the amount otherwise payable as revenue for the carriage 
     of preference cargo bears to the gross revenue derived from 
     the entire voyage.
       ``(h) The Secretary of Transportation shall enter into 
     operating agreements in the following order of priority:
       ``(1) liner vessel or vessels owned or operated by a person 
     that is a citizen of the United States under section 2 of the 
     Shipping Act, 1916; and then
       ``(2) liner vessel or vessels owned or operated by a person 
     that is eligible to document a vessel under chapter 121 of 
     subtitle II of title 46, United States Code.
       ``(i) No authority granted by the Secretary of 
     Transportation to an owner or operator of a vessel covered by 
     an operating agreement under this subpart may be sold, 
     assigned, conveyed, leased or otherwise transferred to any 
     other party, without the written consent of the Secretary of 
     Transportation pursuant to the provisions of section 608 of 
     this title.
       ``(j) Any authority granted by the Secretary of 
     Transportation to an owner or operator of a vessel covered by 
     an operating agreement under this subpart shall be used by 
     the holder of the operating agreement within one year from 
     the date such authority is granted for existing vessels and 
     within two years from the date such authority is granted for 
     newly constructed vessels, or the authority shall revert to 
     the Secretary of Transportation for such disposition as 
     determined appropriate.
       ``(k) An operating agreement entered into by the Secretary 
     of Transportation under this subpart shall be effective for a 
     period of not more than ten years, and, under any condition, 
     terminate not later than September 30, 2004.
       ``(l) An operating agreement entered into by the Secretary 
     of Transportation under this subpart shall require the owner 
     or operator of a vessel covered by an operating agreement 
     under this subpart to enroll in an Emergency Preparedness 
     Program, pursuant to the requirements of section 652, under 
     such terms and conditions as the Secretary may prescribe.
       ``Sec. 652. National Security Requirements.
       ``(a) On a request of the President, acting through the 
     Secretary of Transportation in consultation with the 
     Secretary of Defense, during time of war or national 
     emergency or when decided by the President to be necessary in 
     the national interest, acting through the Secretary of 
     Transportation in consultation with the Secretary of Defense, 
     an owner or operator of a vessel covered by an operating 
     agreement under this subpart shall make available commercial 
     transportation resources pursuant to an Emergency 
     Preparedness Program established by the Secretary of 
     Transportation in consultation with the Secretary of Defense.
       ``(b) The commercial transportation resources to be made 
     available shall include ships, capacity, intermodal systems 
     or equipment, terminal facilities, and intermodal and 
     management services, or any portion of these resources, as 
     the Secretary may determine to be necessary.
       ``(c) The Secretary of Transportation shall not reduce the 
     amount of equal monthly installment payments under section 
     651 to an owner or operator who makes commercial 
     transportation resources available pursuant to an Emergency 
     Preparedness Program under this section.
       ``(d) An owner or operator who makes a vessel available 
     pursuant to this section shall be permitted to employ a 
     foreign-flag vessel in the foreign commerce of the United 
     States, without receiving additional compensation, as a 
     replacement for a vessel covered by an operating agreement, 
     until a vessel used is redelivered.
       ``Sec. 653. Domestic Noncontiguous Trade Restrictions.
       ``(a) Prohibition.--
       ``(1) In general.--Except as provided in this section, an 
     owner or operator may not receive any payment under this 
     subpart--
       ``(A) if the owner or operator or a related party with 
     respect to the owner or operator, directly or indirectly 
     owns, charters, or operates a vessel engaged in the 
     transportation of cargo in a noncontiguous trade other than 
     in accordance with a waiver under subsection (b), (c), or 
     (d); or
       ``(B) if the owner or operator is authorized to operate a 
     vessel in noncontiguous trade under such a waiver, and there 
     is a--
       ``(i) material change in the domestic ports served by the 
     owner or operator from the ports permitted to be served under 
     the waiver;
       ``(ii) material increase in the annual number or the 
     frequency of sailings by the owner or operator from the 
     number or frequency permitted under the waiver; or
       ``(iii) material increase in the annual volume of cargo 
     carried or annual capacity utilized by the owner or operator 
     from the annual volume of cargo or annual capacity permitted 
     under the waiver.
       ``(2) Limitations on prohibition.--Paragraph (1) applies to 
     an owner or operator only in the years specified for payments 
     under the operating agreement entered into by the owner or 
     operator.
       ``(b) General Waiver Authority.--
       ``(1) In general.--Except as provided in subsection (c), 
     the Secretary may waive, in writing, the application of 
     subsection (a) to an owner or operator pursuant to an 
     application submitted in accordance with this subsection, 
     unless the Secretary finds that--
       ``(A) the waiver would result in unfair competition to any 
     person that operates vessels as a carrier of cargo in a 
     service exclusively in the noncontiguous trade for which the 
     waiver is applied;
       ``(B) subject to paragraph (6), existing service in that 
     noncontiguous trade is adequate; or
       ``(C) the waiver will result in prejudice to the objects or 
     policy of this title or Act.
       ``(2) Terms of waiver.--Any waiver granted by the Secretary 
     under this subsection shall state--
       ``(A) the domestic ports permitted to be served,
       ``(B) the annual number or frequency of sailings that may 
     be provided; and
       ``(C)(i) the annual volume of cargo permitted,
       ``(ii) for containerized or trailer service, the annual 40-
     foot equivalent unit shipboard container and trailer or 
     vehicle or general cargo capacity permitted, or
       ``(iii) for tug and barge service, the annual barge house 
     cubic foot capacity and the annual barge deck general cargo 
     capacity, or 40-foot equivalent unit container, trailer, or 
     vehicle capacity, permitted.
       ``(3) Applications for waivers.--An application for a 
     waiver under this subsection may be submitted by an owner or 
     operator and shall describe, as applicable, the nature and 
     scope of--
       ``(A) the service proposed to be conducted in a 
     noncontiguous trade under the waiver; or
       ``(B) any proposed material change or increase in a service 
     in a noncontiguous trade permitted under a previous waiver.
       ``(4) Action on application and hearing.--
       ``(A) Notice and proceeding.--Within 30 days after receipt 
     of an application for a waiver under this subsection, the 
     Secretary shall--
       ``(i) publish a notice of the application;
       ``(ii) begin a proceeding on the application section 554 of 
     title 5, United States Code, to recieve--
       ``(I) evidence of the nature, quantity, and quality of the 
     existing service in the noncontiguous trade for which the 
     waiver is applied;
       ``(II) a description of the proposed service or proposed 
     material change or increase in a previously permitted 
     service;
       ``(III) the projected effect of the proposed service or 
     proposed material change or increase in existing service; and
       ``(IV) recommendations on conditions that should be 
     contained in any waiver for the proposed service or material 
     change or increase.
       ``(B) Intervention.--An applicant for a waiver under this 
     subsection, and any person that operates cargo vessels in the 
     noncontiguous trade for which a waiver is applied and that 
     has any interest in the application, may intervene in the 
     proceedings on the application.
       ``(C) Hearing.--Before deciding whether to grant a waiver 
     under this subsection, and the Secretary shall hold a public 
     hearing in an expeditious manner, reasonable notice of which 
     shall be published.
       ``(5) Decision.--The Secretary shall complete all 
     proceedings and hearings on an application under this 
     subsection and issue decision on the record within 90 days 
     after receipt of the final briefs submitted for the record.
       ``(6) Limitation on consideration of certain existing 
     service.--
       ``(A) Limitation.--In determining whether to grant a waiver 
     under this subsection for noncontiguous trade with Hawaii, 
     the Secretary shall not consider the criterion set forth in 
     paragraph (1)(B) if a qualified operator--
       ``(i) is a party to an operating agreement under this 
     subpart, and
       ``(ii) operates 4 or more vessels in foreign commerce in 
     competition with another operator who is a party to an 
     operating agreement under this subpart.
       ``(B) Qualified operator.--In this paragraph, the term 
     `qualified operator' means a person that on July 1, 1992, 
     offered service as an operator of containerized vessels, 
     trailer vessels, or combination container and trailer vessels 
     in domestic trade with Hawaii and the Johnston Islands 
     (including a related party with respect to the person).
       ``(c) Waivers for Existing Noncontiguous Trade Operators.--
       ``(1) In general.--The Secretary shall waive the 
     application of subsection (a) to an owner or operator, who is 
     a party to an operating agreement under this subpart, 
     pursuant to an application submitted in accordance with this 
     subsection if the Secretary finds that the owner or operator, 
     or a related party or predecessor in interest with respect to 
     the owner or operator--
       ``(A) engaged in bona fide operation of a vessel as a 
     carrier of cargo by water--
       ``(i) in a noncontiguous trade on July 1, 1992; or
       ``(ii) in furnishing seasonal service in a season 
     ordinarily covered by its operation, during the 12 calendar 
     months preceding July 1, 1992; and
       ``(B) has operated in this service since that time, except 
     for interruptions of service resulting from military 
     contingency or over which the owner or operator (or related 
     party or predecessor in interest) had no control.
       ``(2) Terms of waiver.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the level of service permitted under a waiver 
     under this subsection shall be the level of service provided 
     by the applicant (or related party or predecessor in 
     interest) in the relevant noncontiguous trade during, for 
     year-round service, the 6 calendar months preceding July 1, 
     1992, or for seasonal service, the 12 calendar months 
     preceding July 1, 1992, determined by--
       ``(i) the domestic ports called;
       ``(ii) the number of sailings actually made, except as to 
     interruptions in the service in the noncontiguous trade 
     resulting from military contingency or over which the 
     applicant (or related party or predecessor in interest) had 
     no control; and
       ``(iii) the volume of cargo carried or, for containerized 
     or trailer service, the 40-foot equivalent unit shipboard 
     container, trailer, or vehicle or general cargo capacity 
     employed, or, for tug and barge service, the barge house 
     cubit foot capacity and barge deck general cargo capacity or 
     40-foot equivalent unit container, trailer, or vehicle 
     capacity, employed.
       ``(B) Certain containerized vessels. If an applicant under 
     this subsection was offering service as an operator of 
     containerized vessels in noncontiguous trades with Hawaii, 
     Puerto Rico, and Alaska on July 1, 1992, a waiver under this 
     subsection for the applicant shall permit a level of service 
     consisting of--
       ``(i) 104 sailings each year from the West Coast of the 
     United States to Hawaii with an annual capacity allocated to 
     the service of 75 percent of the total capacity of the 
     vessels employed in the service on July 1, 1992;
       ``(ii) 156 sailings each year in each direction between the 
     East Coast or Gulf Coast of the United States and Puerto Rico 
     with an annual capacity allocated to the service of 75 
     percent of the total capacity of its vessels employed in the 
     service on the date of the enactment of the Maritime Security 
     and Trade Act of 1994; and
       ``(iii) 103 sailings each year in each direction between 
     Washington and Alaska with an annual capacity allocated to 
     the service in each direction of 100 percent of the total 
     capacity of its vessels employed in the service on July 1, 
     1992.
       ``(C) Certain tugs and barges.--If an applicant under this 
     subsection was offering service as an operator of tugs and 
     barges in noncontiguous trades with Hawaii, Puerto Rico, and 
     Alaska on July 1, 1992, a waiver under this subsection for 
     the applicant shall permit a level of service consisting of--
       ``(i) 17 sailings each year in each direction between ports 
     in Washington, Oregon, and Northern California and ports in 
     Hawaii with an annual barge house cubic foot capacity and 
     annual barge deck 40-foot equivalent unit container capacity 
     in each direction of 100 percent of the total of the capacity 
     of its vessels employed in the service during the 6 calendar 
     months preceding July 1, 1992, annualized;
       ``(ii) 253 sailings each year in each direction between the 
     East Coast or Gulf Coast of the United States and Puerto Rico 
     with an annual 40-foot equivalent unit container or trailer 
     capacity equal to 100 percent of the capacity of its barges 
     employed in the service on the date of the enactment of the 
     Maritime Security and Trade Act of 1994;
       ``(iii) 37 regularly scheduled tandem tow rail barge 
     sailings and 10 additional single tow rail barge sailings 
     each year in each direction between Washington and the 
     Alaskan port range between and including Anchorage and 
     Whittier with an annual capacity allocated to the service in 
     each direction of 100 percent of the total rail car capacity 
     of its vessels employed in the service on July 1, 1992;
       ``(iv) 8 regularly scheduled single tow sailings each year 
     in each direction between Washington and points in Alaska 
     (not including the port range between and including Anchorage 
     and Whittier, except occasional deviations to discharge 
     incidental quantities of cargo) with an annual capacity 
     allocated to the service in each direction of 100 percent of 
     the total capacity of its vessels employed in the service on 
     July 1, 1992; and
       ``(v) unscheduled, contract carrier tug and barge service 
     between points in Alaska south of the Arctic Circle not 
     served by the common carrier service permitted under clause 
     (iii) and points in the contiguous 48 States, with an annual 
     capacity allocated to that service not exceeding 100 percent 
     of the total capacity of the equipment that was dedicated to 
     service south of the Arctic Circle on July 1, 1992, and 
     actually utilized in that service in the 2-year period 
     preceding that date.
       ``(D) Annualization.--Capacity otherwise required by this 
     paragraph to be permitted under a waiver under this 
     subsection shall be annualized if not a seasonal service.
       ``(E) Adjustments.--
       ``(i) Each written waiver granted by the Secretary under 
     this subsection shall contain a statement that the annual 
     capacity permitted under this waiver in any direction shall 
     increase for a calendar year by the percentage of increase 
     during the preceding calendar year in the rural gross product 
     of the State or territory to which goods are transported in 
     the noncontiguous trade covered by the waiver, or its 
     equivalent economic measure as determined by the Secretary if 
     the real gross product is not available, and that the 
     increase shall not be considered to be a material change or 
     increase for purposes of subsection (a)(1)(B).
       ``(ii) The increase in permitted capacity under clause (i) 
     in the noncontiguous trade with Alaska shall be allowed only 
     to the extent the operator actually uses that increased 
     capacity to carry cargo in the permitted service in the 
     calendar year immediately following the preceding increase in 
     gross product. However, if an operator operating exclusively 
     containerized vessels in trade on July 1, 1992, carries an 
     average load factor of at least 90 percent of permitted 
     capacity (including the capacity, if any, both authorized and 
     used under the previous sentence) during 9 months of any one 
     calendar year, than in the next following calendar year and 
     thereafter, the requirement that additional capacity must be 
     used in the immediately following year does not apply.
       ``(F) Service levels not increased by termination of 
     agreement.--The termination of an operating agreement under 
     Subpart B of this title shall not be considered to increase a 
     level of service specified in subparagraph (A), (B), or (C) 
     if the contractor under the agreement enters into another 
     operating agreement after that termination.
       ``(3) Applications for waivers.--For a waiver under this 
     subsection a contractor shall submit to the Secretary an 
     application certifying the facts required to be found under 
     paragraph (1) (A) or (B), as applicable.
       ``(4) Action on application.--
       ``(A) Notice.--The Secretary shall publish a notice of 
     receipt of an application for a waiver under this subsection 
     within 30 days after receiving the application.
       ``(B) Hearing prohibited.--The Secretary may not conduct a 
     hearing on an application for a waiver under this subsection.
       ``(C) Submission of comments.--The Secretary shall give 
     every person operating a cargo vessel in a noncontiguous 
     domestic trade for which a waiver is applied for under this 
     subsection and who has any interest in the application a 
     reasonable opportunity to submit comments on the application 
     and on the description of the service that would be permitted 
     by any waiver that is granted by the Secretary under the 
     application.
       ``(5) Decision on application.--Subject to the time 
     required for publication of notice and for receipt and 
     evaluation of comments by the Secretary, an application for a 
     waiver under this subsection submitted at the same time the 
     applicant applies for inclusion of a vessel in the fleet 
     established under this subpart shall be granted in accordance 
     with the level of service determined by the Secretary under 
     this subsection by not later than the date on which the 
     Secretary offers to the applicant an operating agreement with 
     respect to that vessel.
       ``(6) Change or increase in service.--Any material change 
     or increase in a service that is subject to a waiver under 
     this subsection is not authorized except to the extent the 
     change or increase is permitted by a waiver under subsection 
     (b).
       ``(d) Emergency Waiver.--Notwithstanding any other 
     provision of this section, the Secretary may, without 
     hearing, temporarily waive the application of subsection 
     (a)(1)(B) if the Secretary finds that a material change or 
     increase is essential in order to respond adequately to (1) 
     an environmental or natural disaster or emergency, or (2) 
     another emergency declared by the President. Any waiver shall 
     be for a period of not to exceed 45 days, except that a 
     waiver may be renewed for 30-day periods if the Secretary 
     finds that adequate capacity continues to be otherwise 
     unavailable.
       ``(e) Annual Report on Waivers.--Each waiver under this 
     section shall require the person who is granted the waiver to 
     submit to the Secretary each year an annual report setting 
     forth for the service authorized by the waiver--
       ``(1) the ports served during the year;
       ``(2) the number or frequency of sailings performed during 
     the year; and
       ``(3) the volume of cargo carried or, for containerized or 
     trailer service, the annual 40-foot equivalent unit shipboard 
     container, trailer, or vehicle capacity utilized during the 
     year, or for tug and barge service, the annual barge house 
     and barge deck capacity utilized during the year.
       ``(f) Definitions.--In this section--
       ``(1) the term `noncontiguous trade' means trade between--
       ``(A) a point in the contiguous 48 States; and
       ``(B) a point in Alaska, Hawaii, or Puerto Rico, other than 
     a point in Alaska north of the Arctic Circle; and
       ``(2) the term `related party' means--
       ``(A) a holding company, subsidiary, affiliate, or 
     associate of a owner or operator who is a party to an 
     operating agreement under this subpart; and
       ``(B) an officer, director, agency, or other executive of a 
     contractor or of a person referred to in subparagraph (A).
       ``Sec. 654. Definitions.--
       ``For the purposes of Subpart B of this title:
       ``(1) The term `citizen of the United States' means a 
     person that is a citizen of the United States under section 
     651 of this subpart.
       ``(2) The term `operating agreement' means an operating 
     agreement that takes effect under section 651 of this subpart 
     and covers one or more vessels.''
       (f) Effective Date.--The amendments made by subsections (a) 
     through (e) of this section shall be effective beginning on 
     the date which is 120 days after the date of enactment of the 
     Maritime Security and Trade Act of 1994.

     SEC. 203. TONNAGE FEES.

       (a) Increase of Duties.--Section 36 of the Act of August 5, 
     1909 (46 App. U.S.C. 121) is amended in the second paragraph 
     by--
       (1) inserting after ``1998,'' the first place it appears 
     ``and a supplemental duty of 15 cents per ton, not to exceed 
     in the aggregate 75 cents per ton in any one year, for fiscal 
     years 1995 through 2004,''; and
       (2) inserting after ``1998,'' the second place it appears, 
     ``and a supplemental duty of 44 cents per ton, not to exceed 
     $2.20 per ton in any one year, for fiscal years 1995 through 
     2004,''.
       (b) Offsetting Receipts.--The increased tonnage fees 
     collected as a result of the amendments made by subsection 
     (a) shall be deposited in the general fund of the Treasury as 
     offsetting receipts of the department in which the Coast 
     Guard is operating and ascribed to Coast Guard activities.

     SEC. 204. USE OF FOREIGN-FLAG VESSELS.

       Section 804 of Title VIII of the Merchant Marine Act, 1936, 
     as amended (46 App. U.S.C. 1222), is amended by adding a new 
     subsection (f) as follows:
       ``(f) The provisions of subsection (a) of this section 
     shall not preclude an owner or operator receiving operating 
     assistance under Subpart A or Subpart B of title VI, or any 
     holding company, subsidiary, affiliate or associate of such 
     owner or operator, or any officer, director, agency, or 
     executive thereof from:
       ``(1) owning, chartering, or operating any foreign-flag 
     vessel that is operated as a feeder vessel for a United 
     States-flag service under an operating agreement pursuant to 
     Subpart B of title VI;
       ``(2) owning, chartering, or operating any foreign-flag 
     vessel in line haul service between the United States and 
     foreign ports; Provided, That the foreign-flag vessel was 
     operated by that owner or operator on the date of enactment 
     of this Act; or that the owner or operator, with respect to 
     each additional foreign-flag vessel, has first applied to 
     have that vessel added to the existing operating agreement, 
     and the Secretary denies the application; And provided 
     further, That any foreign-flag vessel in line haul service 
     between the United States and foreign ports is (a) registered 
     under the flag of an effective United States-controlled 
     foreign flag, and (b) available to be requisitioned by the 
     Secretary of Transportation pursuant to section 902 of this 
     Act;
       ``(3) owning, chartering, or operating foreign-flag liner 
     vessels that are operated exclusively in foreign-to-foreign 
     service and not in the foreign commerce of the United States;
       ``(4) owning, chartering, or operating foreign-flag bulk 
     cargo vessels that are operated in both foreign-to-foreign 
     service and the foreign commerce of the United States;
       ``(5) chartering or operating foreign-flag vessels that are 
     operated solely as replacement vessels for United States-flag 
     vessels that are made available to the Secretary of Defense 
     pursuant to section 652 of Subpart B of title VI; or
       ``(6) entering into space charter agreements with foreign-
     flag carriers or acting as agent or broker for a foreign-flag 
     vessel or vessels.

     SEC. 205. DEFINITION OF PRIVATELY OWNED UNITED STATES-FLAG 
                   COMMERCIAL VESSELS.

       The third sentence of section 901(b)(1) of title IX of the 
     Merchant Marine Act, 1936, as amended (46 App. U.S.C. 
     1241(b)(1)) is deleted in its entirety and the following is 
     inserted in lieu thereof:
       ``For purposes of this section, the term `privately owned 
     United States-flag commercial vessels' shall be deemed to 
     include (1) any privately owned United States flag commercial 
     vessel constructed in the United States, (2) any privately 
     owned liner vessel constructed, reconstructed, or acquired 
     outside the United States that is documented pursuant to 
     chapter 121 of title 46, United States Code and is less than 
     five years of age on the date of such documentation, and (3) 
     any bulk cargo vessel constructed in or delivered by a 
     shipyard outside the United States after January 1, 1993. The 
     term `privately owned United States-flag commercial vessels' 
     shall also be deemed to include any liner or bulk cargo 
     vessel that so qualified pursuant to section 615 of title VI 
     or Section 901(b)(1) of title IX of this Act, prior to 
     enactment of the Maritime Security and Trade Ace of 1994. The 
     term `privately owned United States-flag commercial vessels' 
     shall not be deemed to include any liquid bulk cargo vessel 
     that does not meet the requirements of section 3703a of title 
     46, United States Code.''

     SEC. 206. USE OF FOREIGN-FLAG FEEDER VESSELS IN CARRIAGE OF 
                   PREFERENCE CARGOES.

       The provisions of law set forth in 46 App. U.S.C. 
     1241(b)(1), 1241-1, and 1241f, requiring use of United 
     States-flag vessels shall, with respect to liner vessels, be 
     deemed fulfilled, as to the total of any shipment other than 
     that of the Department of Defense covered by 10 U.S.C. 2631, 
     if the actual ocean transportation of each shipment for which 
     the United States-flag carrier has issued its own through 
     bill-of-lading between the original port of lading and the 
     port of final discharge, consists of transportation of the 
     cargo by a combination of United States- and foreign-flag 
     vessels; Provided, That, measured by distance, the United 
     States-flag line haul portion of each voyage is greater than 
     the foreign-flag feeder portion of each voyage pursuant to 
     regulations issued by the Secretary of Transportation.

     SEC. 207. LIMITATION ON RESTRICTIONS.

       Notwithstanding any other provision of law or contract, all 
     restrictions and requirements set forth in 46 App. U.S.C. 
     1153, 1156, and 1212, applicable to a vessel constructed, 
     reconstructed or reconditioned with the aid of construction-
     differential subsidy shall terminate: (1) for a liner or dry 
     bulk cargo vessel, upon the expiration of the 25-year period 
     beginning on the date of original delivery of the vessel from 
     the shipyard, and (2) for a liquid bulk cargo vessel, upon 
     the expiration of the 20-year period beginning on the date of 
     original delivery of the vessel from the shipyard.
                                 ______

      By Mr. INOUYE:
  S. 1946. A bill to provide for the repurchase of land taken by 
eminent domain, by native American organizations, and for other 
purposes; to the Committee on Governmental Affairs.


                      land repurchase act of 1994

 Mr. INOUYE. Mr. President, I am today introducing a bill to 
provide for the return of lands that were held in trust for native 
Americans prior to their acquisition by the United States in the 
Government's exercise of its power of condemnation through eminent 
domain.
  Mr. President, this bill would provide that within 90 days of the 
date on which property is declared to be surplus by the United States, 
an organization that previously held the land in trust for native 
Americans would have the right to exercise the right of first refusal 
to repurchase the property from the Government at fair market value.
  I believe that the result effected by this measure will afford a 
greater degree of equity to native Americans for whom land was held in 
trust, while compensating the Government in full for the reacquisition 
of such lands.
                                 ______

      By Mr. DeCONCINI (for himself, Mr. Warner, Mr. Graham, Mr. 
        Murkowski, Mr. D'Amato, Mr. Kerrey, Mr. Gorton, Mr. Bryan, Mr. 
        Chafee, Mr. Johnston, Mr. Boren, and Mr. Baucus):
  S. 1948. A bill to amend the National Security Act of 1947 to improve 
the counterintelligence and security posture of the U.S. intelligence 
community and to enhance the investigative authority of the Federal 
Bureau of Investigation in counterintelligence matters, and for other 
purposes; to the Select Committee on Intelligence.


       counterintelligence and security enhancements act of 1994

  Mr. DeCONCINI. Mr. President, Senator Warner and I are today 
introducing a bill which we believe would go a long way toward 
improving the counterintelligence and security posture of U.S. 
intelligence agencies. Joining us as cosponsors of this bill are 
Senators Graham, Kerrey, Bryan, Johnston, D'Amato, Chafee, Gorton, 
Baucus, Boren, and Murkowski, all of whom are members or former members 
of the Select Committee on Intelligence.
  Mr. President, I particularly thank Senator Boren and Senator Cohen 
for their tireless work that they put forth in 1989 and 1990 as 
chairman and ranking member of the committee. Senator Cohen has 
introduced that legislation and then modified it. We are going to work 
from that excellent work that was put together by the committee at that 
time, and our legislation indicates what additions we have made to 
that.
  We will continue to work with any Senator who is interested in seeing 
our national security secrets are protected and there is the best 
effort put forward to prevent the types of incidents that just recently 
occurred relating to the allegations concerning Mr. Ames and his wife.
  We have all been shocked and saddened in recent weeks by the arrest 
of CIA employee, Alrich H. Ames, and his wife, Maria del Rosario Casas 
Ames, on charges of spying, first for the Soviet Union and then for the 
Russian Republic. Allegedly, this began in 1985 and lasted until the 
time the couple was arrested several weeks ago.
  We are incredulous that such activities could have gone on so long 
without detection by an agency which we thought had very stringent 
security procedures. In the weeks since the arrest, the Select 
Committee on Intelligence has been exploring what went wrong and how 
best to fix it.
  While we are a long way from completing our inquiry, several points 
are clear:
  First, CIA and other intelligence agencies actually require little in 
the way of information from their employees which might tip them off to 
espionage activities.
  There are background investigations which are periodically updated, 
and, at CIA and NSA, there are polygraphs required for employees. Once 
you are in, however, there is relatively little scrutiny given 
employees and little effort made to enforce the rules.
  Second, it is apparent that security elements at the intelligence 
agencies as well as the FBI itself lack the legal authority needed to 
obtain records from private institutions relating to the employees of 
intelligence agencies.
  Moreover, some of the authorities the FBI does have--for example, to 
see tax returns--often are not available until very late in the 
investigative process.
  Third, it is clear that there has been a problem between the CIA and 
the FBI in terms of their cooperation on counterintelligence 
investigations. While there may be an understandable desire on the part 
of the CIA to protect the identities of its intelligence sources, it 
cannot be allowed to be an obstacle where investigations of 
counterintelligence problems are concerned. There must be complete 
cooperation and coordination between these agencies.
  Mr. President, the bill we are introducing today addresses each of 
these problem areas:
  It would require all employees of intelligence agencies, as a 
condition of their employment, to consent to access by the Government 
to their tax returns, financial records, and travel records.
  It would further require that all such employees who are in critical 
intelligence positions, as defined by the bill, must make detailed 
financial disclosures and continuously update them for so long as they 
hold such positions, and for 10 years thereafter, or until they leave 
Government service.
  It would provide additional legal authority needed by the 
intelligence agencies and by the FBI to obtain access to records needed 
for counterintelligence investigations.
  It would establish clear requirements to improve the relationship 
between the FBI and the CIA and other intelligence agencies.
  Mr. President, I do not stand here and say that we can pass a law 
that will stop espionage. There is no panacea for spying. Someone who 
decides to betray his country will, regrettably, find a way to do so 
regardless of the laws we have on the books.
  But it does seem to me that there are things we can do that would 
make it more difficult for such people to escape detection--that would 
make it easier for them to trip themselves up. There are also things we 
can do to improve the ability of our counterintelligence and security 
agencies to identify the culprits, and things we can do to facilitate 
their prosecution. That is what our bill attempts to do.
  It builds upon legislation that was introduced by Senators Boren and 
Cohen in 1990, and I want to take this opportunity to acknowledge the 
contribution that both of these distinguished Senators made, not only 
to this legislation, but to intelligence generally, when they served as 
chairman and vice chairman, respectively, of the Select Committee on 
Intelligence.
  Senator Warner and I thought it desirable to develop a new bill to 
address more directly the problems apparent in the Ames case and to 
reflect developments since 1990 when the original legislation was 
introduced.
  None of this is etched in stone. Indeed, the committee will be 
holding public hearings on this bill, as well as the bill introduced by 
Senators Boren and Cohen, and the bills recently introduced by Senators 
Metzenbaum and Heflin, to deal with the counterintelligence problem.
  Our objective is to find the best solution, striking the appropriate 
balance between our security needs and the privacy of the Government 
employees who are affected. I think the bill that Senator Warner and I 
introduce today is a good place to start.
  Mr. President, I now ask unanimous consent that the text of the bill 
be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record as follows:

                                S. 1948

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Counterintelligence and 
     Security Enhancements Act of 1994''.

     SEC. 2. COUNTERINTELLIGENCE FOR EMPLOYEES OF AGENCIES IN THE 
                   INTELLIGENCE COMMUNITY.

       (a) In General.--The National Security Act of 1947 (50 
     U.S.C. 401 et seq.) is amended by adding at the end the 
     following new title:
  ``TITLE VIII--COUNTERINTELLIGENCE FOR EMPLOYEES OF AGENCIES IN THE 
                         INTELLIGENCE COMMUNITY


                             ``DEFINITIONS

       ``Sec. 801. As used in this title:
       ``(1) The term `head of an agency within the intelligence 
     community' includes the following:
       ``(A) The Director of Central Intelligence in the case of 
     the Central Intelligence Agency and the Office of the 
     Director of Central Intelligence.
       ``(B) The Director of the National Security Agency in the 
     case of such agency.
       ``(C) The Director of the Defense Intelligence Agency in 
     the case of such agency.
       ``(D) The head of the central imagery authority of the 
     Department of Defense in the case of such authority.
       ``(E) The Director of the National Reconnaissance Office in 
     the case of such office.
       ``(F) The Secretaries of the military departments in the 
     case of offices within such departments for the collection of 
     specialized national intelligence through reconnaissance 
     program and in the case of intelligence elements of the Army, 
     Navy, Air Force, and Marine Corps.
       ``(G) The Director of the Federal Bureau of Investigation 
     in the case of the intelligence elements of such bureau.
       ``(H) The Secretary of State, the Secretary of Treasury, 
     and the Secretary of Energy in the case of the intelligence 
     elements within the departments of each such Secretary, 
     respectively.
       ``(2) The term `critical intelligence position' means any 
     position within the intelligence community, the holder of 
     which requires access to critical intelligence information.
       ``(3) The term `critical intelligence information' means--
       ``(A) classified information which reveals the identities 
     of covert agents of the intelligence community and the 
     disclosure of which to unauthorized persons would reasonably 
     jeopardize the lives or safety of such agents;
       ``(B) classified information concerning a technical 
     collection system of the intelligence community, the 
     disclosure of which to unauthorized persons would 
     substantially negate or impair the effectiveness of the 
     system; or
       ``(C) classified information relating to a cryptographic 
     system for the protection of classified information of the 
     United States, the disclosure of which to unauthorized 
     persons would substantially negate or impair the 
     effectiveness of the system.
       ``(4) The term `covert agent' has the meaning given such 
     term in section 606(4).
       ``(5) The term `technical collection system' means a system 
     for the collection, transmission, or exploitation of 
     electronic signals, emanations, or images by means that are 
     not commercially available.
       ``(6) The term `information relating to a cryptographic 
     system' means information relating to (i) the nature, 
     preparation, content, or use of any code, cipher, or other 
     method of protecting communications of classified information 
     of the United States from interception by unauthorized 
     persons, or (ii) the design, construction, use, maintenance, 
     or repair of any equipment used to protect such 
     communications from such interception. Such term does not 
     include information on the use of such equipment for personal 
     or office use.
       ``(7) The term `authorized investigative agency' means an 
     agency, office, or element of the Federal Government 
     authorized by law or regulation to conduct investigations of 
     employees of the intelligence community for 
     counterintelligence or security purposes.
       ``(8) The term `employee' means any person who--
       ``(A) receives a salary or compensation of any kind from an 
     agency of the intelligence community;
       ``(B) is a contractor or unpaid consultant of such an 
     agency; or
       ``(C) otherwise acts for or on behalf of such an agency.


 ``REQUIREMENTS FOR EMPLOYEES OF AGENCIES IN THE INTELLIGENCE COMMUNITY

       ``Sec. 802. A person may not become an employee of an 
     agency within the intelligence community unless, before 
     becoming such an employee, the person--
       ``(1) authorizes, in writing, the Secretary of the Treasury 
     to disclose the tax returns of the person, or information 
     from such tax returns, to a representative of an authorized 
     investigative agency specified in the document evidencing 
     such authority during the period in which the person is 
     employed by the agency;
       ``(2) agrees, in writing, to permit a representative of 
     such an authorized investigative agency to inspect or obtain 
     for purposes authorized under this title copies of all 
     records relating to bank accounts, investment accounts, 
     credit accounts, and assets having a value of more than 
     $10,000 in which the person, or any member of the immediate 
     family of the person, has a beneficial interest during such 
     period; and
       ``(3) agrees, in writing, to permit a representative of 
     such an authorized investigative agency to inspect or obtain 
     copies of all records maintained by a governmental entity or 
     a private entity relating to the travel of the person to a 
     foreign country.


            ``DESIGNATION OF CRITICAL INTELLIGENCE POSITIONS

       ``Sec. 803. Consistent with this title and in accordance 
     with section 808, the head of each agency within the 
     intelligence community shall by regulation designate each 
     position within the agency which qualifies as a critical 
     intelligence position.


    ``REQUIREMENTS FOR EMPLOYEES IN CRITICAL INTELLIGENCE POSITIONS

       ``Sec. 804. (a) An employee of an agency within the 
     intelligence community may not hold a critical intelligence 
     position unless, before holding such position, such 
     employee--
       ``(1) provides the authority and agreements referred to in 
     paragraphs (1), (2), and (3) of section 802; and
       ``(2) in accordance with the regulations prescribed under 
     section 808--
       ``(A) provides the agency employing the employee with an 
     appropriate statement disclosing the nature and location of 
     all bank accounts, investment accounts, credit accounts, and 
     assets valued at more than $10,000 in which the employee, or 
     any immediate member of the family of the employee, has a 
     beneficial interest;
       ``(B) agrees, in writing, to advise promptly the agency of 
     any changes which occur with respect to the nature or 
     location of the accounts or assets disclosed pursuant to 
     subparagraph (A); and
       ``(C) agrees, in writing, to advise the agency employing 
     the employee, in advance, of any travel of the employee to a 
     foreign country if the travel is not authorized as part of 
     the employee's official duties in such position.
       ``(b) An employee providing an authorization and agreements 
     under subsection (a) shall agree that the authorization and 
     agreement continue in effect--
       ``(1) during the period in which the employee holds the 
     critical intelligence position for which the employee 
     provides the authorization and agreements; and
       ``(2) if the employee ceases holding such position, until 
     the earlier of--
       ``(A) the date 10 years after the date on which the 
     employee ceases holding such position; or
       ``(B) the date on which the employee ceases employment with 
     the Federal Government.


        ``RESPONSIBILITIES OF AUTHORIZED INVESTIGATIVE AGENCIES

       ``Sec. 805. (a) An appropriate authorized investigative 
     agency shall, in accordance with the regulations prescribed 
     under section 808--
       ``(1) periodically review and verify the information 
     provided and disclosed under section 804 by persons holding 
     critical intelligence positions; and
       ``(2) if such review indicates the failure of any such 
     person to comply fully and completely with the requirements 
     of such section, conduct an appropriate inquiry with respect 
     to such failure.
       ``(b)(1) If circumstances indicate the loss or compromise 
     of critical intelligence information, the head of the agency 
     concerned shall immediately advise the Federal Bureau of 
     Investigation of such loss or compromise.
       ``(2) Upon notification under paragraph (1), the Federal 
     Bureau of Investigation, or any other appropriate authorized 
     investigative agency with the concurrence with the Federal 
     Bureau of Investigation, may conduct appropriate inquiries 
     with respect to such loss or compromise.
       ``(c) Any inquiry under this section may include requests 
     for information from a governmental entity or from private 
     entities. Such requests shall be made in accordance with 
     section 806.


            ``REQUESTS BY AUTHORIZED INVESTIGATIVE AGENCIES

       ``Sec. 806. (a)(1) Any authorized investigative agency may 
     request from any governmental entity, or from any private 
     entity, such records or other information as are necessary in 
     order to conduct any authorized counterintelligence inquiry 
     or security inquiry, including inquiries under section 805.
       ``(2) Each such request--
       ``(A) shall be accompanied by a written certification 
     signed by the head of the intelligence agency concerned, or 
     the designee of the head of the agency, and shall certify 
     that--
       ``(i) the person concerned is an employee of the 
     intelligence agency;
       ``(ii) the request is being made pursuant to an authorized 
     inquiry or investigation; and
       ``(iii) the records or information to be reviewed are 
     records or information which the employee has previously 
     agreed to make available to the authorized investigative 
     agency for review;
       ``(B) shall contain a copy of the agreement referred to in 
     subparagraph (A)(iii);
       ``(C) shall identify the records or information to be 
     reviewed; and
       ``(D) shall inform the recipient of the request of the 
     prohibition described in subsection (b).
       ``(b) No governmental or private entity, or officer, 
     employee, or agent of such entity, may disclose to any 
     person, other than those officers, employees, or agents of 
     such entity necessary to satisfy a request made under this 
     section, that such entity has received or satisfied a request 
     made by an authorized investigative agency under this 
     section.
       ``(c)(1) Notwithstanding any other provision of law, an 
     entity receiving a request for records or information under 
     subsection (a) shall, if the request satisfies the 
     requirements of this section, make available such records or 
     information for inspection or copying, as may be appropriate, 
     by the agency requesting such records or information.
       ``(2) Any entity (including any officer, employee or agent 
     thereof) that discloses records or information for inspection 
     or copying pursuant to this section in good faith reliance 
     upon the certifications made by an agency of the intelligence 
     community pursuant to this section shall not be liable for 
     any such disclosure to any person under this title, the 
     constitution of any State, or any law or regulation of any 
     State or any political subdivision of any State.
       ``(d) Subject to the availability of appropriations 
     therefor, any agency requesting records or information under 
     this section may reimburse a private entity for any cost 
     reasonably incurred by such entity in responding to such 
     request, including the cost of identifying, reproducing, or 
     transporting records or other data.
       ``(e)(1) Except as provided in paragraph (2), an agency 
     receiving records or information pursuant to a request under 
     this section may not disseminate the records or information 
     obtained pursuant to such request outside such agency.
       ``(2) An agency may disseminate records or information 
     referred to in paragraph (1) only to the agency employing the 
     employee who is the subject of the records or information or 
     to the Department of Justice for law enforcement or 
     counterintelligence purposes.
       ``(f) Any authorized investigative agency that discloses 
     records or information received pursuant to a request under 
     this section in violation of subsection (e)(1) shall be 
     liable to the employee to whom the records relate in an 
     amount equal to the sum of--
       ``(1) $100, without regard to the volume of records 
     involved;
       ``(2) any actual damages sustained by the employee as a 
     result of the disclosure;
       ``(3) if the violation is found to have been willful or 
     intentional, such punitive damages as the court may allow; 
     and
       ``(4) in the case of any successful action to enforce 
     liability, the costs of the action, together with reasonable 
     attorney fees, as determined by the court.


       ``RESPONSIBILITIES OF THE FEDERAL BUREAU OF INVESTIGATION

       ``Sec. 807. (a) The Director of the Federal Bureau of 
     Investigation shall have overall responsibility for the 
     conduct of counterintelligence and law enforcement 
     investigations involving persons in critical intelligence 
     positions. The Director shall coordinate all investigative 
     activities (other than routine inquiries for security 
     purposes) undertaken with respect to such persons by 
     authorized investigative agencies.
       ``(b) The head of each agency within the intelligence 
     community shall ensure that the Director of the Federal 
     Bureau of Investigation is provided appropriate access to the 
     employees and the records of the agency as may be necessary 
     to carry out authorized counterintelligence or law 
     enforcement investigations.


                       ``IMPLEMENTING REGULATIONS

       ``Sec. 808. Not later than 6 months after the date of the 
     enactment of this Act, the Director of Central Intelligence 
     shall issue regulations applicable to all agencies of the 
     intelligence community to implement the provisions of this 
     Act. Such regulations shall take effect not later than 6 
     months after the date of their issuance by the Director.


                              ``OVERSIGHT

       ``Sec. 809. The Director of Central Intelligence shall 
     submit to the Select Committee on Intelligence of the Senate 
     and the Permanent Select Committee on Intelligence of the 
     House of Representatives a report on the activities carried 
     out under this title and the effectiveness of this title in 
     facilitating counterintelligence activities. The Director 
     shall submit the report on an annual basis.''.
       (b) Treatment of Incumbents of Covered Positions.--(1) Each 
     employee of an agency within the intelligence community shall 
     carry out the requirements of section 802 of the National 
     Security Act of 1947, as added by subsection (a), not later 
     than 60 days after the issuance of the regulations required 
     under section 808 of such Act, as so added.
       (2) The head of each agency within the intelligence 
     community shall, upon designating a position within the 
     agency as a critical intelligence position under section 803 
     of such Act, as so added, promptly inform the incumbent, if 
     any, of such position, and any persons being considered for 
     such position, of such designation.
       (3) The head of each such agency shall require that each 
     person who holds a position in the agency so designated shall 
     carry out the requirements of section 804 of such Act, as so 
     added, not later than 60 days after the date of such 
     designation.
       (4) Notwithstanding any other provision of law, the head of 
     each such agency shall--
       (A) terminate the employment of any employee of the agency, 
     or any incumbent in a critical intelligence position in the 
     agency, who fails to comply with the requirements set forth 
     in paragraph (1) or (3), as the case may be; and
       (B) to the extent feasible--
       (i) reassign such incumbent to a position of equal grade 
     and status within the agency that is not a critical 
     intelligence position; or
       (ii) facilitate the reemployment of such employee in an 
     agency that is not an agency within the intelligence 
     community.
       (c) Treatment of Congressional Staff Having Access to 
     Critical Intelligence Information.--(1) Notwithstanding any 
     other provision of law and subject to paragraph (2), sections 
     802 and 804 of the National Security Act of 1947, as added by 
     subsection (a), shall apply to employees of Congress whose 
     positions of employment require access to critical 
     intelligence information.
       (2) The leaders of each House of Congress shall jointly 
     determine with respect to such House--
       (A) the employees of such House whose positions of 
     employment require access to critical intelligence 
     information; and
       (B) appropriate means of applying such sections to such 
     employees.
       (3) In this subsection:
       (A) The term ``critical intelligence information'' has the 
     meaning given such term in section 801(3) of such Act, as so 
     added.
       (B) The term ``leaders of each House of Congress'' means 
     the following:
       (i) In the case of the Senate, the Majority Leader of the 
     Senate and the Minority Leader of the Senate.
       (ii) In the case of the House of Representative, the 
     Speaker of the House of Representatives and the Minority 
     Leader of the House of Representatives.

     SEC. 3. DISCLOSURE OF CONSUMER CREDIT REPORTS FOR 
                   COUNTERINTELLIGENCE PURPOSES.

       Section 608 of the Fair Credit Reporting Act (15 U.S.C. 
     1681f) is amended--
       (1) by striking ``Notwithstanding'' and inserting ``(a) 
     Disclosure of Certain Identifying Information.--
     Notwithstanding''; and
       (2) by adding at the end the following new subsection:
       ``(b) Disclosures to the FBI for Counterintelligence 
     Purposes.--
       ``(1) Consumer reports.--Notwithstanding the provisions of 
     section 604, a consumer reporting agency shall furnish a 
     consumer report to the Federal Bureau of Investigation when 
     presented with a written request for a consumer report, 
     signed by the Director of the Federal Bureau of 
     Investigation, or the Director's designee, who certifies 
     compliance with this subsection. The Director or the 
     Director's designee may make such a certification only if the 
     Director or the Director's designee has determined in writing 
     that--
       ``(A) such records are necessary for the conduct of an 
     authorized foreign counterintelligence investigation; and
       ``(B) there are specific and articulable facts giving 
     reason to believe that the consumer whose consumer report is 
     sought is a foreign power or an agent of a foreign power, as 
     defined in section 101 of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1801).
       ``(2) Identifying information.--Notwithstanding the 
     provisions of section 604, a consumer reporting agency shall 
     furnish identifying information respecting a consumer, 
     limited to name, address, former addresses, places of 
     employment, or former places of employment, to the Federal 
     Bureau of Investigation when presented with a written 
     request, signed by the Director or the Director's designee, 
     which certifies compliance with this subsection. The Director 
     or the Director's designee may make such a certification only 
     if the Director or the Director's designee has determined in 
     writing that--
       ``(A) such information is necessary to the conduct of an 
     authorized counterintelligence investigation; and
       ``(B) there is information giving reason to believe that 
     the consumer has been, or is about to be, in contact with a 
     foreign power or an agent of a foreign power, as so defined.
       ``(3) Confidentiality.--No consumer reporting agency or 
     officer, employee, or agent of such consumer reporting agency 
     may disclose to any person, other than those officers, 
     employees, or agents of such agency necessary to fulfill the 
     requirement to disclose information to the Federal Bureau of 
     Investigation under this subsection, that the Federal Bureau 
     of Investigation has sought or obtained a consumer report or 
     identifying information respecting any consumer under 
     paragraph (1) or (2), nor shall such agency, officer, 
     employee, or agent include in any consumer report any 
     information that would indicate that the Federal Bureau of 
     Investigation has sought or obtained such a consumer report 
     or identifying information.
       ``(4) Payment of fees.--The Federal Bureau of Investigation 
     shall, subject to the availability of appropriations, pay to 
     the consumer reporting agency assembling or providing credit 
     reports or identifying information in accordance with 
     procedures established under this title, a fee for 
     reimbursement for such costs as are reasonably necessary and 
     which have been directly incurred in searching, reproducing, 
     or transporting books, papers, records, or other data 
     required or requested to be produced under this subsection.
       ``(5) Limit on dissemination.--The Federal Bureau of 
     Investigation may not disseminate information obtained 
     pursuant to this subsection outside of the Federal Bureau of 
     Investigation, except to the Department of Justice as may be 
     necessary for the approval or conduct of a foreign 
     counterintelligence investigation.
       ``(6) Rules of construction.--Nothing in this subsection 
     shall be construed to prohibit information from being 
     furnished by the Federal Bureau of Investigation pursuant to 
     a subpoena or court order, or in connection with a judicial 
     or administrative proceeding to enforce the provisions of 
     this Act. Nothing in this subsection shall be construed to 
     authorize or permit the withholding of information from 
     Congress.
       ``(7) Reports to congress.--On a semiannual basis, the 
     Attorney General of the United States shall fully inform the 
     Permanent Select Committee on Intelligence and the Committee 
     on Banking, Finance and Urban Affairs of the House of 
     Representatives, and the Select Committee on Intelligence and 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate concerning all requests made pursuant to paragraphs 
     (1) and (2).
       ``(8) Damages.--Any agency or department of the United 
     States obtaining or disclosing credit reports, records, or 
     information contained therein in violation of this subsection 
     is liable to the consumer to whom such records relate in an 
     amount equal to the sum of--
       ``(A) $100, without regard to the volume of records 
     involved;
       ``(B) any actual damages sustained by the consumer as a 
     result of the disclosure;
       ``(C) if the violation is found to have been willful or 
     intentional, such punitive damages as a court may allow; and
       ``(D) in the case of any successful action to enforce 
     liability under this subsection, the costs of the action, 
     together with reasonable attorney fees, as determined by the 
     court.
       ``(9) Disciplinary actions for violations.--If a court 
     determines that any agency or department of the United States 
     has violated any provision of this subsection and the court 
     finds that the circumstances surrounding the violation raise 
     questions of whether or not an officer or employee of the 
     agency or department acted willfully or intentionally with 
     respect to the violation, the agency or department shall 
     promptly initiate a proceeding to determine whether or not 
     disciplinary action is warranted against the officer or 
     employee who was responsible for the violation.
       ``(10) Good-faith exception.--Any credit reporting agency 
     or agent or employee thereof making disclosure of credit 
     reports or identifying information pursuant to this 
     subsection in good-faith reliance upon a certificate of the 
     Federal Bureau of Investigation pursuant to provisions of 
     this subsection shall not be liable to any person for such 
     disclosure under this title, the constitution of any State, 
     or any law or regulation of any State or any political 
     subdivision of any State.
       ``(11) Limitation of remedies.--The remedies and sanction 
     set forth in this subsection shall be the only judicial 
     remedies and sanctions for violation of this subsection.
       ``(12) Injunctive relief.--In addition to any other remedy 
     contained in this subsection, injunctive relief shall be 
     available to require compliance with the procedures of this 
     subsection. In the event of any successful action under this 
     subsection, costs together with reasonable attorney fees, as 
     determined by the court, may be recovered.''.

     SEC. 4. FBI ACCESS TO TAX RETURNS FOR COUNTERINTELLIGENCE 
                   PURPOSES.

       Section 6103(i) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(9) Disclosure for counterintelligence purposes.--
       ``(A) In general.--Except as provided in paragraph (6), any 
     return or return information with respect to any specified 
     taxable period or periods shall, pursuant to and upon the 
     grant of an ex parte order by a district court judge issued 
     pursuant to section 103 of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1803), be open (but only 
     to the extent necessary as provided in such order) to 
     inspection by, or disclosure to, officers and employees of 
     the Department of Justice who are personally and directly 
     engaged in an authorized counterintelligence investigation 
     solely for the use of such officers and employees in such 
     investigation.
       ``(B) Application for order.--The Attorney General or the 
     Deputy Attorney General may authorize an application to a 
     judge referred to in subparagraph (A). Upon such application, 
     such judge may grant such an order if the judge determines on 
     the basis of the facts submitted by the applicant that--
       ``(i) there are specific and articulable facts giving 
     reason to believe that the person whose returns or return 
     information is sought is a foreign power or an agent of a 
     foreign power, as defined in section 101 of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1801);
       ``(ii) there is reasonable cause to believe that the return 
     or return information is or may be relevant to an authorized 
     counterintelligence investigation;
       ``(iii) the return or return information is sought 
     exclusively for use in an authorized counterintelligence 
     investigation; and
       ``(iv) the information sought to be disclosed cannot 
     reasonably be obtained, under the circumstances, from another 
     source.''.

     SEC. 5. REWARDS FOR INFORMATION CONCERNING ESPIONAGE.

       (a) Rewards.--Section 3071 of title 18, United States Code, 
     is amended--
       (1) by inserting ``(a)'' before ``With respect to''; and
       (2) by adding at the end the following new subsection:
       ``(b) With respect to acts of espionage involving or 
     directed at classified information of the United States, the 
     Attorney General may reward any individual who furnishes 
     information--
       ``(1) leading to the arrest or conviction, in any country, 
     of any individual or individuals for commission of an act of 
     espionage with respect to such information against the United 
     States;
       ``(2) leading to the arrest or conviction, in any country, 
     of any individual or individuals for conspiring or attempting 
     to commit an act of espionage with respect to such 
     information against the United States; or
       ``(3) leading to the prevention or frustration of an act of 
     espionage with respect to such information against the United 
     States.''.
       (b) Definitions.--Section 3077 of such title is amended by 
     inserting at the end thereof the following new paragraphs:
       ``(8) `act of espionage' means an activity that is a 
     violation of--
       ``(A) section 794 or 798 of title 18, United States Code; 
     or
       ``(B) section 4 of the Subversive Activities Control Act of 
     1950 (50 U.S.C. 783).
       ``(9) `classified information of the United States' means 
     information originated, owned, or possessed by the United 
     States Government concerning the national defense or foreign 
     relations of the United States that has been determined 
     pursuant to law or Executive order to require protection 
     against unauthorized disclosure in the interests of national 
     security.''.
       (c) Clerical Amendments.--The items relating to chapter 204 
     in the table of chapters at the beginning of such title, and 
     in the table of chapters at the beginning of part II of such 
     title, are each amended by adding at the end the following: 
     ``AND ESPIONAGE''.

     SEC. 6. JURISDICTION OF UNITED STATES COURTS TO TRY CASES 
                   INVOLVING ESPIONAGE OUTSIDE THE UNITED STATES.

       (a) In General.--Chapter 211 of title 18, United States 
     Code, is amended by inserting after section 3238 the 
     following new section 3239:

     ``Sec. 3239. Jurisdiction of espionage outside the United 
       States and related offenses

       ``The trial for any offense involving a violation of--
       ``(1) section 793, 794, 798, or 1030(a)(1) of this title;
       ``(2) section 601 of the National Security Act of 1947 (50 
     U.S.C. 421); or
       ``(3) subsection (b) or (c) of section 4 of the Subversive 
     Activities Control Act of 1950 (50 U.S.C. 783(b) or (c)),

     begun or committed upon the high seas or elsewhere out of the 
     jurisdiction of any particular State or district, may be 
     prosecuted in the District of Columbia, or in the Eastern 
     District of Virginia, or in any other district authorized by 
     law.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 211 of such title is amended by 
     inserting after the item relating to section 3238 the 
     following:

``3239. Jurisdiction of espionage outside the United States and related 
              offenses.''.

     SEC. 7. LESSER CRIMINAL OFFENSE FOR THE UNAUTHORIZED REMOVAL 
                   OF CLASSIFIED DOCUMENTS.

       (a) In General.--Chapter 93 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1924. Unauthorized removal and retention of classified 
       documents or material

       ``(a) In General.--Whoever, being an officer, employee, 
     contractor, or consultant of the United States, and, by 
     virtue of his office, employment, position, or contract, 
     becomes possessed of documents or materials containing 
     classified information of the United States, knowingly 
     removes such documents or materials without authority and 
     with the intent to retain such documents or materials at an 
     unauthorized location shall be fined not more than $1,000, or 
     imprisoned for not more than 1 year, or both.
       ``(b) Definition.--In this section, the term `classified 
     information of the United States' means information 
     originated, owned, or possessed by the United States 
     Government concerning the national defense or foreign 
     relations of the United States that has been determined 
     pursuant to law or Executive order to require protection 
     against unauthorized disclosure in the interests of national 
     security.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``1924. Unauthorized removal and retention of classified documents or 
              material.''.

     SEC. 8. CRIMINAL FORFEITURE FOR VIOLATION OF CERTAIN 
                   ESPIONAGE LAWS.

       (a) Title 18.--Section 798 of title 18, United States Code, 
     is amended by adding at the end the following new subsection:
       ``(d)(1) Any person convicted of a violation of this 
     section shall forfeit to the United States irrespective of 
     any provision of State law--
       ``(A) any property constituting, or derived from, any 
     proceeds the person obtained, directly or indirectly, as the 
     result of such violation; and
       ``(B) any of the person's property used, or intended to be 
     used, in any manner or part, to commit, or to facilitate the 
     commission of, such violation.
       ``(2) The court, in imposing sentence on a defendant for a 
     conviction of a violation of this section, shall order that 
     the defendant forfeit to the United States all property 
     described in paragraph (1).
       ``(3) Except as provided in paragraph (4), the provisions 
     of subsections (b), (c), and (e) through (p) of section 413 
     of the Comprehensive Drug Abuse Prevention and Control Act of 
     1970 (21 U.S.C. 853 (b), (c), and (e)-(p)) shall apply to--
       ``(A) property subject to forfeiture under this subsection;
       ``(B) any seizure or disposition of such property; and
       ``(C) any administrative or judicial proceeding in relation 
     to such property, if not inconsistent with this subsection.
       ``(4) Notwithstanding section 524(c) of title 28, there 
     shall be deposited in the Crime Victims Fund established 
     under section 1402 of the Victims of Crime Act of 1984 (42 
     U.S.C. 10601) all amounts from the forfeiture of property 
     under this subsection remaining after the payment of expenses 
     for forfeiture and sale authorized by law.''.
       (b) Amendments for Consistency in Application of Forfeiture 
     Under Title 18.--(1) Section 793(h)(3) of such title is 
     amended in the matter above subparagraph (A) by striking out 
     ``(o)'' each place it appears and inserting in lieu thereof 
     ``(p)''.
       (2) Section 794(d)(3) of such title is amended in the 
     matter above subparagraph (A) by striking out ``(o)'' each 
     place it appears and inserting in lieu thereof ``(p)''.
       (c) Subversive Activities Control Act.--Section 4 of the 
     Subversive Activities Control Act of 1950 (50 U.S.C. 783) is 
     amended by adding at the end the following new subsection:
       ``(g)(1) Any person convicted of a violation of this 
     section shall forfeit to the United States irrespective of 
     any provision of State law--
       ``(A) any property constituting, or derived from, any 
     proceeds the person obtained, directly or indirectly, as the 
     result of such violation; and
       ``(B) any of the person's property used, or intended to be 
     used, in any manner or part, to commit, or to facilitate the 
     commission of, such violation.
       ``(2) The court, in imposing sentence on a defendant for a 
     conviction of a violation of this section, shall order that 
     the defendant forfeit to the United States all property 
     described in paragraph (1).
       ``(3) Except as provided in paragraph (4), the provisions 
     of subsections (b), (c), and (e) through (p) of section 413 
     of the Comprehensive Drug Abuse Prevention and Control Act of 
     1970 (21 U.S.C. 853 (b), (c), and (e)-(p)) shall apply to--
       ``(A) property subject to forfeiture under this subsection;
       ``(B) any seizure or disposition of such property; and
       ``(C) any administrative or judicial proceeding in relation 
     to such property, if not inconsistent with this subsection.
       ``(4) Notwithstanding section 524(c) of title 28, United 
     States Code, there shall be deposited in the Crime Victims 
     Fund established under section 1402 of the Victims of Crime 
     Act of 1984 (42 U.S.C. 10601) all amounts from the forfeiture 
     of property under this subsection remaining after the payment 
     of expenses for forfeiture and sale authorized by law.''.
  Mr. WARNER. Mr. President, I join the distinguished chairman of the 
Intelligence Committee, on which I am privileged to serve as 
cochairman, in introducing this legislation today. I also join him in 
extending our respects to our colleague from Maine and our colleague 
from Oklahoma, who did a lot of very important work several years ago 
and, once again, have brought this matter to the attention of the 
Senate.
  I have drawn up in my statement a careful comparison between the bill 
we put in today and the bill that was originally fashioned by Senators 
Boren and Cohen. The encountered, at that time, when they put this bill 
before the Senate Intelligence Committee, considerable opposition 
because of the necessity, in this type of legislation, to ask of the 
employees--not just the CIA, but throughout the several departments and 
agencies of our Government dealing with intelligence matters--to give 
up a certain measure of personal privacy as a condition of their 
employment.
  That is a very serious point. We have put that provision in this 
bill, and it is one which this body must address at a time, I hope an 
early time, when this bill will be addressed in full and be passed by 
this body.
  We have also incorporated a provision that was essential, in the 
judgment of the Director of the CIA, Director Woolsey. And that is, we 
have a law in here by which the appropriate authorities of the U.S. 
Government can go into the bank records, travel records, brokerage 
records of individual employees and determine the presence or absence 
of evidence which could, in fact, implicate them in violation of laws 
relating to the security of our Nation.
  In concluding, throughout the history of this country, our Nation has 
been fortunate to have a very large number of individual citizens who 
dedicated their entire careers to intelligence. Indeed, some of them 
have suffered loss of limb, and indeed loss of life. There are no less 
than 50 names on a wall at the Central Intelligence Agency permanently 
recognizing the ultimate sacrifice of those individuals.
  They should not be tainted by the Ames case, nor should they in any 
way be impugned by the serious and constructive deliberation that is 
now underway by both the legislative and executive branches as we 
proceed to revise and add to that body of law that would preclude an 
individual from becoming a turncoat and divulging classified material.
  As I look back in history, in the 1940's and the 1950's and the 
1960's, indeed, almost into the 1970's, those few individuals who did 
become turncoats were motivated in large part by ideology.
  But not so today. This is the dirty dollar. It is greed; it is money; 
and that is the reason we must ask for the appropriate legislation to 
have surveillance over the financial records of these several 
employees.
  In thank the Senator, and I appreciate the indulgence of our 
colleagues.
  I ask unanimous consent that my full statement be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

        Statement of Senator John Warner on the Introduction of 
            Counterintelligence Legislation, March 17, 1994

       Mr. President, I am pleased to join with Chairman DeConcini 
     in introducing a bill today to greatly improve the 
     counterintelligence and security posture of the United States 
     intelligence community.
       Contrary to popular belief, the espionage threat against 
     the United States did not lessen with the end of the cold 
     war. The tragic Ames case makes this fact painfully clear. 
     Our vital National intelligence still needs to be carefully 
     protected, and turncoats who seek to betray our Nation must 
     be discovered as quickly as possible and brought to justice.
       A review of espionage cases over the past 20 years reveals 
     disturbing trends. Unlike the spies of the 1940's, 1950's, 
     and 1960's who seemed primarily motivated by ideology, 
     today's turncoats are overwhelmingly motivated by greed. It's 
     the dirty dollar that destroys them and their families. With 
     this in mind, the bill we are introducing today focuses on 
     the financial activities of employees in the intelligence 
     community.
       Mr. President, at this point I would like to briefly review 
     the history of recent congressional consideration of 
     legislation similar to our bill. Senators Cohen and Boren 
     deserve a great deal of credit for their pioneering work in 
     this area in the late 1980's and early 1990's when they were 
     cochairman of the Senate Intelligence Committee. In the fall 
     of 1989, Senators Cohen and Boren established a panel of 
     outside, volunteer consultants--under the chairmanship of Eli 
     Jacobs--to examine the statutory framework for the conduct of 
     U.S. counterintelligence activities, and to recommend 
     legislative proposals.
       This group submitted the ``Jacobs Panel Report'' with 13 
     recommendations to the Senate Intelligence Committee during a 
     public hearing on May 23, 1990. Senators Cohen and Boren 
     incorporated many of these recommendations into a bill 
     (S.2726), which was referred to the Intelligence Committee. 
     The Committee held a second public hearing on the ``Jacobs 
     Panel Report,'' with witnesses from the Justice Department 
     and the ACLU, on July 12, 1990.
       Unfortunately, S.2726 was not reported out of the Senate 
     Committee. The bill was reintroduced by Senators Cohen 
     and Boren in January 1991 as S. 394, but again was not 
     reported out of committee.
       I have recently gone back over the records of the 
     Intelligence Committee in an effort to recollect why this 
     important legislation was not enacted in 1990 or 1991. It 
     appears that there were several reasons for this failure. The 
     Justice Department raised a number of problems with the 
     legislation, as did the Judiciary, Banking, and Governmental 
     Affairs Committees of the Senate. In addition, the ACLU 
     opposed several aspects of the bill due to civil liberties 
     concerns. It was clear that time did not permit the 
     legislation to be worked out among all of the interested 
     parties.
       But perhaps the biggest single determining factor in why 
     this legislation was not enacted were events on the 
     international scene. With the collapse of the Berlin Wall, 
     the fall of communism in Eastern Europe, and the dissolution 
     of the Soviet Union, the political mood in the United States 
     began to shift. Many felt that with the end of the cold war, 
     there was less need to be concerned about an espionage 
     threat, particularly from the East.
       We now all see what some of us have known all along--that 
     the espionage threat to the United States remains a very real 
     one. I applaud Senators Cohen and Boren for reintroducing 
     their counterintelligence legislation--S. 1869--on February 
     24 of this year. I believe that S. 1869 is a good starting 
     point for legislation in this area. But this legislation, 
     which originated in 1990, can be improved upon and 
     strengthened in light of the Ames case. The bill that we are 
     introducing today does just that.
       I would like to highlight some of the key differences 
     between the Cohen Boren bill and the DeConcini/Warner bill:
       Our bill applies to all employees of intelligence agencies; 
     the Cohen/Boren bill is limited to individuals with a top 
     secret clearance. While the Cohen/Boren bill requires 
     everyone with a top secret clearance to give consent for the 
     Government to have access to their financial and travel 
     records as part of the initial background investigation and 
     during 5-year update investigations, the DeConcini/Warner 
     bill requires all employees of intelligence agencies to 
     consent to government access to their financial and travel 
     records, as well as their tax returns during their entire 
     period of employment. In addition, the DeConcini/Warner bill 
     establishes stricter requirements for employees in critical 
     intelligence positions, as defined by the bill. Such 
     employees will be required to file detailed financial 
     disclosure reports.
       The DeConcini/Warner bill also contains a key provision 
     that is not in the Cohen/Boren bill. That is, our bill 
     prohibits the private sector (i.e., banks, brokerage houses, 
     travel agencies) from disclosing that a request for access to 
     financial and travel records has been made. This provision is 
     crucial so that employees under suspicion are not tipped off.
       The DeConcini/Warner bill also has two new provisions. The 
     first of these provisions permits the FBI to access tax 
     returns in counterintelligence cases (whether or not such 
     returns involve an intelligence agency employee). The second 
     provision extends the criminal forfeiture provisions of the 
     drug enforcement statute to the proceeds of espionage, that 
     is, giving government greater authority to recover the 
     proceeds of espionage activities.
       The DeConcini/Warner bill establishes a new misdemeanor 
     offense for the removal of classified documents to an 
     unauthorized location with the intent to retain them there. 
     The Cohen/Boren bill has a similar provision but limits its 
     application only to the removal of material classified top 
     secret.
       In my view, the DeConcini/Warner bill incorporates a major 
     portion of the ideas from the Cohen/Boren bill and, in many 
     cases, substantially strengthens those ideas. The DeConcini/
     Warner bill will provide the Government with a number of 
     valuable tools for both deterring espionage activity, as well 
     as more expeditiously discovering espionage when deterrence 
     fails.
       I would like to end my remarks with an appeal to my 
     colleagues, to Americans across our land. As we struggle with 
     the revelations and implications of the tragic Ames case, I 
     urge we not lose sight of the loyal intelligence 
     professionals through the many departments and agencies of 
     our Government who have dedicated their careers, and some who 
     have given life and limb, to the service of our Nation. Over 
     50 stars engraved on the wall at CIA headquarters attest to 
     the ultimate sacrifice which CIA employees are willing to 
     make for their country. The contributions of these officers 
     who gave their lives, and the thousands of others at CIA who 
     work in the secret intelligence world will never be accorded 
     the attention that a Mr. Ames receives.
       As the executive and legislative branches expeditiously 
     turn to strengthening our laws and strengthening our 
     administrative procedures to better protect our Nation's 
     security, we must not allow this constructive work to reflect 
     adversely on the reputations of those, past and present, who 
     serve and have served our Nation with great distinction in 
     the intelligence field. Mr. Ames is a rare exception to the 
     rule in an intelligence community which is staffed by 
     dedicated employees who--perhaps more than anyone else in the 
     Nation--have reason to be outraged at the turncoat actions of 
     but a few.
       Employees of intelligence agencies must be willing to 
     accept certain personal disclosures as a condition of 
     employment. In an area as sensitive and critical as the 
     Nation's security, the scales must tip in favor of protecting 
     our Nation's secrets. This bill does that.

  Mr. GRAHAM. Mr. President, I am pleased to join today with Senators 
DeConcini and Warner as an original cosponsor of the 
Counterintelligence and Security Enhancements Act of 1994.
  The chairman and vice chairman of the Senate Select Committee on 
Intelligence have ably outlined the bill's provisions.
  Many of these provisions are based upon the fine work of the Jacobs 
panel, led by Eli Jacobs. I support all of them.
  We need this legislation--particularly the ability to do thorough 
financial background checks--if we are going to guard successfully 
against a future Rick Ames.
  But, Mr. President, it will take more than legislation to fix what is 
wrong at the Central Intelligence Agency. The CIA is seriously broken. 
I believe we all know that.
  When the last investigator has written the last word on the Ames' 
case, we are going to find that this massive security breakdown was due 
in large measure to the CIA's organizational culture--what some have 
described as an old boys' network.
  As Mr. Jim Hoagland so accurately wrote on March 8 in the Washington 
Post, Ames was OOU--One of Us. Son of an agency employee, hired before 
he finished college, he never received the scrutiny he so obviously 
warranted.
  Let me quote Mr. Hoagland because he hits it right on the head.

       What we are really talking about is an old boys' network--a 
     network that also revolves around the central notions of a 
     class system; inherited privilege and social solidarity . . . 
     A sense of social solidarity may help explain why the U.S. 
     intelligence community, which spends about $30 billion a year 
     to discover the world's most guarded secrets, failed to see a 
     significant and suspicious change of behavior that occurred 
     under its nose. There are some things OOU are not expected to 
     do.

  In other words, Mr. President, OOU's are not supposed to sell out 
their country for money.
  But that's exactly what Ames did. And so did virtually every other 
turned American spy caught during the 1980's.
  This legislation, with its emphasis on personal finances, is a step 
in the right direction.
  Legislation, however, is no substitute for leadership. Whether we 
successfully come to grips with the one-of-us syndrome will depend 
largely upon CIA Director Jim Woolsey's leadership.
  Serious mistakes were made in the Ames case. Those responsible for 
the extraordinary level of complacency that surrounded this case must 
be held accountable.
  It is Mr. Woolsey's responsibility as director to make that call. But 
if he avoids the hard decisions, if he goes for the quick fix and 
papers over the Agency's deep-rooted cultural problems, he will face a 
growing credibility problem with an American public already highly 
skeptical of the billions of dollars we spend on the spy business.
  If, on the other hand, Mr. Woolsey takes serious corrective action, 
if he aggressively builds on that action to define a new role for the 
CIA in the post-cold-war world, he will be taking the first steps 
toward rebuilding the Agency's tarnished reputation.
  The choice is his.
  Mr. President, I ask unanimous consent that the article be printed in 
the Record.
  There being no objection, the article was ordered to be printed in 
the Record, as follows:

                [From the Washington Post, Mar. 8, 1994]

                            Old Boys at CIA

                           (By Jim Hoagland)

       Aldrich Hazen Ames, the spy with three last names, might 
     not have run his scam as long as he did had he been plain 
     Fred Jones or Billy Bob Smith. Then his fellow spooks might 
     have been more suspicious when he drove up to work one day in 
     a new Jaguar, fresh from his mortgage-free $540,000 manse.
       Let me rephrase that as a question: Does the still-
     unfolding Ames case reveal the Central Intelligence Agency as 
     a mini-class system that has begun a decline into 
     obsolescence and decay?
       It is grandiose overstatement to refer to an intelligence 
     agency as a class system, or course. What we are really 
     talking about is an old boys' network--a network that also 
     revolves around the central notions of a class system: 
     inherited privilege and social solidarity.
       Those notions permeate the case of Ames, the 52-year-old 
     former head of counterintelligence for the Soviet Union and 
     Eastern Europe at the CIA, now accused of having spied for 
     the Kremlin. He was hired by the agency before even finishing 
     college because of his father's good record there. He was, 
     the old boys at the agency decided, OUF: One Of Us.
       A sense of social solidarity may help explain why the U.S. 
     intelligence community, which spends about $30 billion a year 
     to discover the world's most guarded secrets, failed to see a 
     significant and suspicious change of behavior that occurred 
     under its nose. There are some things OUFs are not expected 
     to do.
       CIA Director R. James Woolsey reportedly said as much when 
     he informed CIA employees of Ames's arrest. A Washington Post 
     account paraphrased Woolsey saying on closed circuit 
     television that he found such a betrayal hard to comprehend 
     ``involving as it did both harm to the country and a 
     violation of a spy's personal and professional obligations.''
       That is the mind-set that produced the failure of the 
     agency to follow Ronald Reagan's most famous dictum: Trust 
     but Verify. The spymasters trusted Ames but did not verify 
     his bank accounts. Indeed, the agency does not seem to have 
     even asked to see them. (Reagan was president when Ames's 
     alleged treachery began.)
       Ex-director Robert M. Gates bristled on television when 
     journalists suggested that failing to check Ames's finances 
     may possibly have been an error. Congress did not order us to 
     check employees' bank accounts, Gates said by way of 
     explanation. The agency was uncomfortable about being too 
     ``intrusive'' in the lives of its employees, he added.
       I doubt that delicacy about intrusiveness really explains 
     the agency's failure in the Ames case. I think the spymasters 
     missed a crucial turn in their business, much as Philco stuck 
     with radios at the dawn of the television era and IBM let its 
     disdain for laptop computers undermine its corporate 
     foundations.
       The agency seems to have stuck with the idea that what OUFs 
     don't do is spy for big money. Internal controls are designed 
     to weed out or capture ideological turncoats or agents caught 
     in the familiar KGB honeypot trap of compromising sexual 
     situations that expose fallen agents to blackmail.
       The CIA was run in a tweedy Ivy League fashion in its first 
     decades and has remained deeply influenced by the Anglophilia 
     of its founders. Ideology and/or sex were at the core of 
     Britain's big spy cases. The CIA's first line of 
     counterespionage defense assumed, perhaps unconsciously, that 
     the same would be true for American spies.
       But times change. In the 1980s the Walker family, Ronald 
     Pelton and other cash-short Americans got big bonuses for 
     signing up with the KGB and selling their country secret by 
     secret. In a world of satellite photography and the big ears 
     of electronic surveillance, spies concentrated more and more 
     on the commerce of turning each other's coats.
       Seventy to eighty percent of a CIA covert agent's working 
     hours is spent on one activity: trying to recruit his or her 
     opposite number in the Kremlin's secret service. That 
     estimate comes from several CIA field agents, all speaking 
     with the same tones of frustration over this misplaced 
     expenditure of time and effort.
       This is marketplace activity, the buying and selling of 
     careers and lives. In its last decade the KGB dominated this 
     loathsome traffic. In contrast, the major Soviet defectors in 
     that period came over not for money but because they saw the 
     failure and inevitable doom of a bankrupt Soviet system.
       The Ames case displays a third characteristic of the class 
     system, even one as small as an old boys' network. A self-
     contained aristocracy is eventually corrupted or overwhelmed 
     by money.
       Treating espionage primarily as a marketplace activity 
     exposed the OUFs of the CIA to the virus of betrayal through 
     greed. If he is guilty as charged, Aldrich Hazen Ames became 
     One Of Them, and a traitor to his professional class, for 
     money.

  Mr. BOREN. Mr. President, I am pleased to cosponsor the DeConcini-
Warner counterintelligence bill. The DeConcini legislation reflects 
many of the ideas and recommendations that are included in S. 1869, a 
bill Senator Cohen and I recently reintroduced on improving our 
country's ability to counter foreign espionage activities.
  Senator Cohen and I became first involved with this issue in 1990 
when I was chairman of the Senate Select Committee on Intelligence and 
Senator Cohen was vice chairman. The committee commissioned an 
independent panel of experts led by Eli Jacobs, a noted business leader 
who had served on a number of national security advisory boards. The 
panel included members who are now high ranking officials in the 
Clinton administration like Secretary of State Warren Christopher, 
White House counsel Lloyd Cutler, and CIA Director Jim Woolsey. Others 
participating in the Jacobs group were Adm. Bobby Inman, former 
Director of the National Security Agency; former Reagan White House 
counsel A.B. Culvahouse; Sol Linowitz, former ambassador to the 
Organization of American States; former CIA Director Richard Helms; and 
Columbia law professor, Harold Edgar. Their exhaustive review of 
espionage laws and our country's security system led to the legislative 
proposals first outlined by Senator Cohen and I in 1990.
  Now, with the Ames case coming to light, the need for reform is even 
greater. Our country must realize, as the Jacobs panel and our 
intelligence committee determined several years ago, that most modern 
spies sell secrets for financial rather than philosophical motives and 
for that reason are not likely to be discouraged by the political 
changes that have swept through the Eastern bloc.
  I am pleased that the current chairmen and vice chairmen of the 
Senate Select Committee on Intelligence have decided to continue the 
efforts for reform. I note the many similarities between the DeConcini-
Warner and Boren-Cohen bills and I look forward to working with them on 
reconciling the two initiatives. In particular, we must carefully 
decide which employees hold sensitive enough positions to be subjected 
to close monitoring of their financial dealings. It is obvious, we do 
not have the resources to scrutinize carefully all employees. To 
monitor too many employees could mean that we do not carefully monitor 
those we should. I hope to discuss this and other issues with my 
distinguished colleagues as the process continues.
                                 ______

      By Mr. LAUTENBERG (for himself, Mr. Faircloth, Mr. Lieberman, and 
        Mr. Reid):
  S. 1949. A bill entitled the ``Mercury-Containing and Rechargeable 
Battery Management Act''; to the Committee on Environment and Public 
Works.


       mercury-containing and rechargeable battery management act

 Mr. LAUTENBERG. Mr. President, I introduce the Mercury-
Containing and Rechargeable Battery Management Act. I am pleased to be 
joined by Senators Faircloth, Lieberman, and Reid in cosponsoring this 
bill. This legislation will achieve three goals. It will reduce the 
amount of mercury used in disposable batteries; it will protect public 
health; and it will stimulate the recycling or proper disposal of 
rechargeable dry cell batteries containing cadmium and lead. As a 
result, there will be a significant reduction in the amounts of toxic 
heavy metals entering our air, water, and soil.
  Lead, mercury, and cadmium can threaten human health. Unlike many 
organic toxic substances, these toxic metals do not break-down into 
less harmful constituents. Instead, lead, mercury, and cadmium persist 
in the environment, where they can be absorbed into human, plant, and 
animal tissues. EPA has identified mercury, cadmium, and lead as 3 of 
the 17 high priority toxic chemicals on which EPA is focusing pollution 
reduction efforts because of their toxicity.
  Lead, which is used in the electrodes of sealed lead rechargeable 
batteries, has been classified as a probable human carcinogen by EPA. 
It has been shown to retard physical and mental development in 
children, leading one expert to call childhood lead poisoning ``the 
most serious pediatric problem in the United States.'' But children are 
not the only ones at risk. Elevated lead exposures also have been 
linked to high blood pressure and central nervous system and kidney 
disorders in adults. And EPA says that lead is ``highly toxic'' to 
aquatic life.
  Cadmium, which is used in the electrodes of rechargeable nickel-
cadmium batteries, can cause kidney and liver damage. And EPA has said 
that exposure to high levels of airborne cadmium can result in 
pulmonary edema and even death, while chronic low-level exposure can 
result in fibrosis of the lung and lung cancer.
  In 1976, EPA banned mercury in pesticide applications, after finding 
that mercury exposure can cause significant damage to the nervous 
system and kidneys. Mercury also has been linked to decreased motor 
functions and muscle reflexes, memory loss, headaches, and brain 
function disorders. And when mercury enters the aquatic environment, it 
can form methyl mercury which is extremely toxic to both humans and 
wildlife.
  Mercury, cadmium, and lead are contained in some battery casings and 
pose no risk while in use. But they can be a significant concern when 
discarded in our solid waste stream.
  In 1992 Americans used approximately 4 billion dry cell batteries 
each year. While dry cell batteries account for less than one-tenth of 
1 percent of the 180 million tons of garbage we generate each year, dry 
cell batteries have been significant sources of mercury, cadmium and 
lead in our solid waste stream. According to the ``Report on Dry Cell 
Batteries in New York State,'' mercury batteries accounted for 85 
percent of the mercury, and rechargeable batteries accounted for 68 
percent of the cadmium in New York's solid waste.
  Dry cell batteries in landfills can break down over time to release 
their toxic contents and contaminate our waters. In composting 
facilities, batteries could contaminate and limit the use of the 
resulting compost. In incinerators, the combustion of dry cell 
batteries containing toxic metals leads to elevated toxic air 
emissions, and increases the concentrations of toxic metals in the 
resulting fly and bottom ash. So it is imperative that we reduce the 
amount of these metals going to our landfills and incinerators where 
they can be released into the environment.
  Sixteen States, including New Jersey, have passed laws either to 
regulate certain types of dry cell batteries, or to study their 
disposal.
  Mr. President, dry cell batteries fall into two major categories. The 
first are primary batteries--which include the familiar disposable 
alkaline manganese and zinc carbon types used in flash lights, toys, 
radios, and similar products. Primary batteries do not rely, in most 
cases, on toxic metals in their electrodes. Instead, most primary 
batteries incorporate relatively small amounts of heavy metals to 
suppress the unwanted formation of gases and to extend battery life.
  The other type of batteries are the secondary or rechargeable 
batteries, which include nickel cadmium and sealed lead rechargeable 
batteries. These batteries often are marketed separately, with 
rechargers, for the same uses as primary batteries. Alternatively, 
rechargeable batteries often are permanently installed into a variety 
of portable rechargeable tools and appliances, such as drills, 
flashlights, and hand-held vacuums.
  Because of technological constraints, secondary batteries rely on 
toxic metals in their electrodes, and therefore contain much higher 
levels of heavy metals than do regular primary batteries. At the 
beginning of this decade, rechargeable batteries occupied only about 8 
percent of the total dry cell battery market--which is about 350,000 
batteries a year. With technological improvements, they are expected to 
make up roughly 20 percent of the market within the next decade. 
Because rechargeables can be re-used for several years, they use 
relatively less raw materials than disposable batteries, and thus 
reduce the environmental costs of extracting virgin metals. And 
Consumer Reports magazine has said, ``[i]n the long run * * * 
rechargeables are far more economical [to the consumer] than 
disposables,'' and that ``for now * * * rechargeable nickel cadmium 
cells represent the `greenest' [consumer] choice.'' That's why my bill 
supports the continued use of rechargeable batteries while at the same 
time encouraging that they are recycled or properly disposed at the end 
of their useful life.
  Mr. President, both primary and secondary batteries contain toxic 
heavy metals. However, they incorporate them for different reasons and 
in different amounts, and that is why my bill will treat them 
differently within a two-pronged Federal regulatory framework.
  The first part of this framework will reduce toxic metals at the 
source, by prohibiting the sale of alkaline manganese, zinc carbon and 
mercuric-oxide batteries with mercury concentrations that were 
intentionally introduced by dates established in the bill.
  The five companies responsible for most of primary battery sales in 
the United States--Eveready, Duracell, Rayovac, Panasonic, and Kodak--
have already begun to reduce their mercury concentrations in line with 
this schedule, and I commend these companies for their efforts. In 
1991, the battery industry consumed 92 percent less mercury than it did 
in 1984. This part of the bill would focus on those manufacturers who 
have not yet committed to these reductions.
  The second part of this framework would encourage the recycling of 
rechargeable batteries containing cadmium or lead. These batteries pose 
a special challenge because current technology does not allow for the 
toxic metal concentrations in these batteries to be reduced. Yet at the 
same time, these batteries serve many valuable applications and 
consumer and environmental benefits.
  The Portable Rechargeable Battery Association [PRBA] has proposed a 
comprehensive program for the collection and recycling of rechargeable 
batteries. My bill will assist PRBA in carrying out its recycling 
program.
  The bills contains a number of other elements designed to aid 
recycling efforts. Twelve months after the enactment of the act, 
rechargeable consumer products must be manufactured in a manner in 
which the rechargeable battery can be removable easily from the product 
or is contained in a battery pack separate from the product. 
Rechargeable batteries and rechargeable consumer products containing 
cadmium and lead must contain labels advising consumers to recycle or 
properly dispose of the battery. EPA would be required to establish a 
battery information dissemination program. Retailers selling 
rechargeable batteries containing cadmium or lead or rechargeable 
consumer products must display a notice that the batteries must be 
recycled or disposed at property.
  Most importantly, the bill changes existing law regarding the 
handling of these batteries from nonhousehold sources. EPA classifies 
spent rechargeable batteries containing cadmium or lead as hazardous 
and subjects them to hazardous waste regulations. This deters the 
recycling of these batteries without providing commensurate 
environmental benefits.
  My bill would address this problem by legislatively exempting the 
collection, storage and disposal of nonhousehold dry cell batteries 
from the hazardous waste requirements if the batteries are to be 
recycled. The bill will not exempt these batteries if they are destined 
for disposal in a hazardous waste landfill. Batteries collected from 
households already are exempted from the hazardous waste requirements 
under RCRA.
  EPA has already established precedent in this area, by excluding the 
wet cell lead acid batteries used in automobiles from hazardous waste 
requirements. And EPA has proposed to treat dry cell batteries in a 
similar matter. But EPA has been slow to take final action.
  The bill also authorizes the battery industry to undertake 
cooperative efforts to collect and properly manage used rechargeable 
batteries and rechargeable consumer products.
  The bill would give EPA the authority to promulgate rules regulating 
the sale of other dry cell batteries if they are found to pose a threat 
to human health or the environment. Penalties are established for 
violations of the act. And State battery programs, like the one in New 
Jersey, would not be preempted except for the labeling of batteries, 
consumer products and their packages.
  Finally, EPA would be required to prepare biennial reports to 
Congress which would document the recycling rate for rechargeable 
batteries and companies which are and are not participating in the 
voluntary recycling program. This information will give the Congress 
and the public information regarding the success and participation 
rates of the voluntary recycling program. As we have seen from 
publication of the Toxic Release Inventory established by the Emergency 
Planning and Community Right to Know Act, giving the public information 
can help spur voluntary efforts to reduce pollution.
  This bill will benefit States like New Jersey which have dry cell 
battery programs. The bill will further State efforts by: First, 
requiring the labeling of batteries to facilitate separation and 
recycling of batteries; second, removing the hazardous waste 
restrictions from collection, transportation and storage of dry cell 
batteries; and third, establishing a large, consistent supply of 
rechargeable batteries with cadmium and lead which will stimulate the 
growth of a domestic recycling industry.
  Mr. President, toxic heavy metals are a bane to our environment, our 
wildlife and our people. This bill will provide effective ways to 
reduce exposure to these dangerous metals.
  I want to commend the dry cell battery industry which has worked 
constructively in the development of this legislation.
  I urge my colleagues to cosponsor this important bill. I ask 
unanimous consent that a copy of the bill, together with letters of 
support from Portable Rechargeable Battery Association and the National 
Electrical Manufacturers Association, be included in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1949

       Be it enacted by the Senate and the House of 
     Representatives of the United States of America in Congress 
     assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Mercury-Containing and 
     Rechargeable Battery Management Act.''

     SEC. 2. CONGRESSIONAL FINDINGS.

       The Congress finds the following:
       (1) On the basis of available scientific and medical 
     evidence, exposure to toxic metals including mercury, cadmium 
     and lead, is of concern to human health and the environment.
       (2) The presence of toxic metals in certain used batteries 
     is of concern, in light of the substantial quantity of used 
     batteries discarded annually in the solid waste stream, and 
     the potential environmental and health consequences 
     associated with land disposal, composting or incineration.
       (3) It is in the public interest to reduce the quantity of 
     toxic metals entering solid waste landfills, incinerators and 
     composting facilities by phasing-out the use of mercury in 
     batteries and by providing for the efficient and cost 
     effective collection and recycling or proper disposal of used 
     nickel cadmium, small sealed lead-acid regulated batteries 
     and any other regulated battery, and to educate the public 
     concerning the collection, recycling and proper disposal of 
     such batteries.
       (4) Uniform national labeling requirements for regulated 
     batteries, rechargeable consumer products and product 
     packaging will significantly benefit programs for regulated 
     battery collection and recycling or proper disposal, and thus 
     will benefit human health and the environment.
       (5) It is in the public interest to encourage recycling by 
     persons who participate in collection, storage, 
     transportation, and recycling of used nickel-cadmium, small 
     sealed lead-acid or any other regulated batteries, and such 
     batteries used in consumer products.
       (6) It is in the public interest and will create economic 
     efficiencies to allow persons who participate in projects or 
     programs to collect and properly manage used batteries or 
     battery-powered products to enter into agreements with other 
     participating persons to include the costs operating such 
     programs in the price of such batteries and battery powered 
     products.

     SEC. 3. DEFINITIONS.

       For the purposes of this Act:
       (1) The term ``Administrator'' means the Administrator of 
     the Environmental Protection Agency.
       (2) The term ``battery pack'' means any combination of 
     rechargeable batteries containing one or more regulated 
     batteries that commonly has wire leads, terminals and 
     dielectric housing.
       (3) The term ``easily removable'' means the battery or 
     battery pack is either detachable or removable from a 
     consumer product by a consumer with the use of common 
     household tools at the end of the life of the product.
       (4) The term ``rechargeable battery'' means any type of 
     enclosed device or sealed container consisting of one or more 
     voltaic or galvanic cells, electrically connected to produce 
     electric energy, that is designed to be recharged for 
     repeated uses. Such term shall not include:
       (a) Any lead-acid battery used to start an internal 
     combustion engine or as the principal electrical power source 
     for vehicles, including but not limited to automobiles, 
     trucks, construction equipment, motorcycles, garden tractors, 
     golfcarts, wheelchairs and boats;
       (b) Any lead-acid battery used for load leveling or for 
     storage of electricity generated by alternative energy 
     sources, such as (but not limited to) solar cells or wind 
     driven generators;
       (c) Any battery used as a backup power source for memory or 
     program instruction storage, timekeeping, or any similar 
     purpose that requires uninterrupted electrical power in order 
     to function if the primary energy supply fails or fluctuates 
     momentarily; and
       (d) rechargeable alkaline batteries.
       (5) The term ``rechargeable consumer product'' means any 
     product that when sold at retail includes a regulated battery 
     as a primary energy supply, and that is primarily intended 
     for personal or household use. Such term shall not include 
     any product that only uses a battery solely as a backup power 
     source for memory or program instruction storage, 
     timekeeping, or any similar purpose that requires 
     uninterrupted electrical power in order to function if the 
     primary energy supply fails or fluctuates momentarily.
       (6) The term ``regulated battery'' means any rechargeable 
     battery that contains a cadmium or a lead electrode or any 
     combination thereof, and such other electrode chemistries as 
     determined by the Administrator pursuant to Section 103(e).
       (7) The term ``remanufactured product'' means a 
     rechargeable consumer product that has been altered by the 
     replacement of parts, repackaged, or repaired after initial 
     sale by the original manufacturer.
       (8) The term ``mercuric-oxide battery'' means a battery 
     that uses a mercuric-oxide electrode.
       (9) The term ``button cell'' means any button-shaped or 
     coin shaped battery.

     SEC. 4. INFORMATION DISSEMINATION.

       The Administrator shall, in consultation with 
     representatives of rechargeable battery manufacturers, 
     rechargeable consumer product manufacturers and retailers, 
     establish a program to provide information to the public 
     concerning the proper handling and disposal of used regulated 
     batteries and rechargeable consumer products with 
     nonremovable batteries.

     SEC. 5. ENFORCEMENT.

       For the purposes of this Act:
       (1) Whenever on the basis of any information the 
     Administrator determines that any person has violated or is 
     in violation of any requirement of this Act, the 
     Administrator may issue an order assessing a civil penalty 
     for any past or current violation, requiring compliance 
     immediately or within a reasonable specified time period, or 
     both, or the Administrator may commence a civil action in the 
     United States district court in the district in which the 
     violation occurred for appropriate relief, including a 
     temporary or permanent injunction.
       (2) Any order issued pursuant to this subsection shall 
     state with reasonable specificity the nature of the 
     violation. Any penalty assessed in the order shall not exceed 
     $10,000 for each such violation. In assessing such a penalty, 
     the Administrator shall take into account the seriousness of 
     the violation and any good faith efforts to comply with 
     applicable requirements.
       (3) Any order issued under this section shall become final 
     unless, no later than thirty days after the order is served, 
     the person or persons named therein request a public hearing. 
     Upon such request the Administrator shall promptly conduct a 
     public hearing. In connection with any proceeding under this 
     section the Administrator may issue subpoenas for the 
     attendance and testimony of witnesses and the production of 
     relevant papers, books and documents.
       (4) If a violator fails to take corrective action within 
     the time specified in a compliance order, the Administrator 
     may assess a civil penalty of not more that $10,000 for the 
     continued noncompliance with the order.

     SEC. 6. INFORMATION GATHERING AND ACCESS.

       For the purposes of this Act:
       (1) Any person who is required to carry out the objectives 
     of this Act, including but not limited to, (1) regulated 
     battery manufacturers, (2) rechargeable consumer product 
     manufacturers, (3) mercury containing battery manufacturers, 
     or (4) their authorized agents shall establish and maintain 
     such records and report such information as the Administrator 
     may by rulemaking reasonably require to carry out the 
     objectives of this Act.
       (2) The Administrator or his authorized representative upon 
     presentation of his credentials may at reasonable times have 
     access to any copy any such records required to be maintained 
     under paragraph (1) of this Section.
       (3) The Administrator shall maintain the confidentiality of 
     such documents and records that contain proprietary 
     information.

     SEC. 7. STATE AUTHORITY.

       Except as provided in Sections 103(f) and 104, relating to 
     requirements and the labeling of rechargeable batteries, 
     battery packs, or rechargeable consumer products or packages 
     containing such products, nothing in this Act shall be 
     construed so as to prohibit a State from enacting and 
     enforcing a standard or requirement that is more stringent 
     than a standard or requirement established or promulgated 
     under this Act.

     SEC. 8. AUTHORIZATION.

       Funds necessary to implement the requirements of this Act 
     are hereby authorized to be appropriated.

              TITLE I.--RECHARGEABLE BATTERY RECYCLING ACT

     SEC. 101. SHORT TITLE.

       This Title may be cited as the ``Rechargeable Battery 
     Recycling Act.''

     SEC. 102. PURPOSE.

       The purpose of this title is to:
       (1) Reduce the quantity of cadmium and lead entering solid 
     waste landfills, incinerators and composing facilities by 
     promoting the efficient recycling of used nickel-cadmium 
     rechargeable batteries, used small sealed lead-acid 
     rechargeable batteries or any other regulated battery, and 
     such rechargeable batteries in used consumer products, 
     through uniform labeling requirements, streamlined regulatory 
     requirements for regulated battery collection programs, and 
     by encouraging voluntary industry programs by eliminating 
     barriers to funding the collection and recycling or proper 
     disposal of used rechargeable batteries.

     SEC. 103. RECHARGEABLE CONSUMER PRODUCTS AND LABELING.

       (a) Prohibition.--No person shall sell to the end user for 
     use in the United States a regulated battery or rechargeable 
     consumer product manufactured on or after the date that is 12 
     months after the date of enactment of this Act, unless--
       (1) the regulated battery--
       (A) is easily removable from the rechargeable consumer 
     product; or
       (B) is contained in a battery pack that is easily removable 
     from the product; or
       (C) is sold separately; and
       (2) The rechargeable consumer product and the regulated 
     battery are labeled in accordance with subsection (b).
       (3) The requirements of subsection (a) do not apply to the 
     following:
       (A) The sale of remanufactured product units unless 
     subsection (a) applied to the sale of the unit when 
     originally manufactured; and
       (B) Product units intended for export purposes only.
       (b) Labeling.--Each of the following items manufactured on 
     or after the date that is 12 months after the date of 
     enactment of this Act, whether produced domestically or 
     imported, shall be labeled with the three chasing arrows or a 
     comparable recycling symbol, and, on nickel-cadmium 
     batteries or battery packs, the chemical name or the 
     abbreviation ``Ni-Cd'', or, on lead-acid batteries and 
     battery packs, either ``Pb'' or the words ``LEAD'' 
     ``RETURN'' ``RECYCLE'', and all applicable statements 
     listed below:
       (1) On each regulated battery or battery pack: ``NICKEL-
     CADMIUM BATTERY. MUST BE RECYCLED OR DISPOSED OF PROPERLY.'' 
     or ``SEALED LEAD BATTERY. BATTERY MUST BE RECYCLED.'';
       (2) On each rechargeable consumer product without an easily 
     removable battery or battery pack: ``CONTAINS NICKEL-CADMIUM 
     BATTERY. BATTERY MUST BE RECYCLED OR DISPOSED OF PROPERLY.'' 
     or ``CONTAINS SEALED LEAD BATTERY. BATTERY MUST BE 
     RECYCLED.''; and
       (3) On the packaging of each rechargeable consumer product, 
     and the packaging of each regulated battery or battery pack 
     sold separately, unless the relevant label is clearly visible 
     through the packaging: ``CONTAINS NICKEL-CADIUM BATTERY. 
     BATTERY MUST BE RECYCLED OR DISPOSED OF PROPERLY.'' or 
     ``CONTAINS SEALED LEAD BATTERY. BATTERY MUST BE RECYCLED.''
       (c) Existing Labeling.--
       (1) For a period of twenty-four (24) months after the date 
     of enactment of this Act, regulated batteries and battery 
     packs, rechargeable consumer products containing regulated 
     batteries, and rechargeable consumer product packages that 
     are labeled in substantial compliance with subsection (b) 
     shall be deemed to comply with the labeling requirements of 
     subsection (b).
       (2) Upon application by persons subject to the labeling 
     requirements of subsection 103(b) or the labeling 
     requirements promulgated by the Administrator under 
     subsection 103(e), the Administrator may approve and certify 
     that a different label meets the requirements of subsections 
     103 (b) and (e), if the different label is substantially 
     similar to the label required under subsections 103 (b) and 
     (e) or conforms with a recognized international standard and 
     is consistent with the overall purposes of this Title.
       (d) Point of Sale Information.--Any retail establishment 
     that offers for sale any battery or product subject to the 
     requirements of subsection (b) or regulations promulgated by 
     the Administrator under subsection (e), shall display in a 
     manner visible to the consumer, a written notice that informs 
     the consumer that regulated batteries, whether sold 
     separately or in rechargeable products, must be recycled or 
     disposed of properly.
       (e) Administrator's Rulemaking Authority.--If the 
     Administrator determines that other rechargeable batteries 
     having electrode chemistries different from regulated 
     batteries are toxic and may cause substantial harm to human 
     health and the environment if discarded into the solid waste 
     stream for land disposal or incineration, the Administrator 
     may, with the advice and counsel of state regulatory 
     authorities and manufacturers of rechargeable batteries and 
     products, and after public comment, (1) promulgate labeling 
     requirements for such batteries, battery packs, products 
     without easily removable batteries and their packaging, 
     and (2) promulgate easily-removable design requirements 
     for rechargeable consumer products designed to contain 
     such batteries or battery packs. The regulations 
     promulgated pursuant to this subsection shall be 
     substantially similar to the requirements contained in 
     subsections (a) and (b).
       (f) Uniformity.--After the effective dates of the 
     requirements set forth in Section 103, no federal agency, 
     State, or political subdivision may enforce any easy 
     removability or environmental labeling requirement for a 
     rechargeable battery or product that includes a rechargeable 
     battery that is not identical to the requirements contained 
     in subsections (a), (b) and (c) or the regulations 
     promulgated by the Administrator under subsection (e).
       (g) Exemptions.--
       (1) In general.--With respect to any rechargeable consumer 
     product, any person may submit an application to the 
     Administrator for an exemption from the requirements of 
     subsection (a) in accordance with the procedures under 
     paragraph (2). The application shall include the following 
     information:
       (A) A statement of the specific basis for the request for 
     the exemption.
       (B) The name, business address, and telephone number of the 
     applicant.
       (2) Granting of Exemption.--Within 60 days of receipt of an 
     application under paragraph (1), the Administrator shall 
     approve or deny the application. Upon approval of the 
     application the Administrator shall grant an exemption to the 
     applicant. The exemption shall be issued for a period of time 
     that the Administrator determines to be appropriate, except 
     that such period shall not exceed 2 years. The Administrator 
     shall grant an exemption on the basis of evidence supplied to 
     the Administrator that the manufacturer has been unable to 
     commence manufacturing the rechargeable consumer product in 
     compliance with the requirements of this section and with an 
     equivalent level of product performance without the product--
       (A) resulting in danger to human health, safety, or the 
     environment; or
       (B) violating requirements for approvals from governmental 
     agencies or widely recognized private standard-setting 
     organizations (including but not limited to Underwriters 
     Laboratories).
       (3) Renewal of exemption.--A person granted an exemption 
     may apply for a renewal of the exemption in accordance with 
     the requirements and procedures described in paragraph (2). 
     The Administrator may grant renewals of an exemption for 
     periods of not more than 2 years after the date of granting 
     of the renewal.

     SEC. 104. REQUIREMENTS.

       For the purposes of carrying out the collection, storage, 
     transportation and recycling or proper disposal of used 
     rechargeable batteries and products without easily removable 
     rechargeable batteries, persons involved in collecting, 
     storing, or transporting used rechargeable batteries or 
     products containing used rechargeable batteries to a facility 
     for recycling or proper disposal shall be regulated in the 
     same manner and with the same limitations as if such persons 
     were collecting, storing or transporting batteries subject to 
     40 C.F.R. Part 266 Subpart G on January 1, 1993, 
     notwithstanding any regulations adopted pursuant to a grant 
     of authority to a State under Section 3006 of the Solid Waste 
     Disposal Act (42 U.S.C. Sec. 6926).

     SEC. 105. COOPERATIVE EFFORTS.

       If two or more persons who participate in projects or 
     programs to collect and properly manage used rechargeable 
     batteries or products powered by rechargeable batteries 
     advise the Administrator of their intent, they may agree to 
     develop jointly, or to share in the costs of participating 
     in, such a program and to examine and rely upon such cost 
     information as is collected during the project or program, 
     notwithstanding any other provision of law.

     SEC. 106. REPORT TO THE CONGRESS.

       (a) Report Deadlines in General.--Not later than 36 months 
     after the date of enactment of this Act, the Administrator, 
     after consultation with and obtaining relevant industry-wide 
     data from the States, environmental and consumer groups, 
     and organizations representing rechargeable battery 
     manufacturers, rechargeable consumer product manufacturers 
     and retailers, and after public hearing and comment, shall 
     submit to Congress a report that provides the information 
     specified in Subsection (b). In collecting information for 
     said report, the Administrator shall coordinate with the 
     aforementioned States, environmental and consumer groups, 
     and organizations to minimize the frequency and scope of 
     any reporting requirements associated with the 
     manufacture, sale, or collection of regulated batteries.
       (b) Content of Report.--The report described in Subsection 
     (a) shall consider and discuss each of the following:
       (1) A review of the activities carried out by the entities 
     listed in Subsection (a) with respect to the labeling and 
     collection, transportation, and recycling or disposal of 
     regulated batteries;
       (2) An estimate, for the period beginning on the date of 
     enactment of this Section and ending on the date of 
     preparation of the report, of the number of regulated 
     batteries entering the solid waste stream for disposal in 
     incinerators, landfills and municipal solid waste facilities;
       (3) A review of the recycling and reclamation rates for 
     regulated batteries; and
       (4) A review of the availability of permitted facilities 
     sufficient to handle the current and projected volume of 
     used regulated batteries, along with a complete evaluation 
     of potential regulatory impediments to management options;
       (5) A list of entities involved in the production and 
     distribution of regulated batteries or rechargeable consumer 
     products participating in programs for the collection of 
     regulated batteries; and
       (6) A list of entities involved in the production and 
     distribution of regulated batteries or rechargeable consumer 
     products, excluding retailers, that are not participating in 
     regulated battery collection programs. In formulating such 
     list, the Administrator shall not require any participant to 
     report the name of any non-participant. Prior to listing any 
     entity as a nonparticipant, the Administrator must determine 
     that the entity should be a participant, and independently 
     verify with the entity that it is not a participant.
       (c) Frequency of Report.--24 months after publication of 
     the report required in Subsection (a), and biennially 
     thereafter, the Administrator shall issue a report that 
     provides an update of the information specified in Subsection 
     (b).

          TITLE II.--MERCURY CONTAINING BATTERY MANAGEMENT ACT

     SEC. 201. SHORT TITLE.

       This Title may be cited as the ``Mercury-Containing Battery 
     Management Act.''

     SEC. 202. PURPOSE.

       The purpose of this Title is to eliminate the quantity of 
     mercury entering solid waste landfills, incinerators and 
     composting facilities by phasing-out the use of mercury in 
     batteries containing mercury.

     SEC. 203. LIMITATIONS ON THE SALE OF ALKALINE-MANGANESE 
                   BATTERIES CONTAINING MERCURY.

       No person shall sell, offer for sale, or offer for 
     promotional purposes any alkaline-manganese battery 
     manufactured on or after January 1, 1996 with a mercury 
     content that was intentionally introduced (as distinguished 
     from mercury which may be incidentally present in other 
     materials), except that the limitation on mercury content in 
     alkaline-manganese button cells shall be 25 milligrams of 
     mercury per button cell.

     SEC. 204. LIMITATIONS ON THE SALE OF ZINC CARBON BATTERIES 
                   CONTAINING MERCURY.

       No person shall sell, offer for sale, or offer for 
     promotional purposes any zinc carbon battery manufactured on 
     or after January 1, 1995, that contains any mercury that was 
     intentionally introduced.

     SEC. 205. LIMITATIONS ON THE SALE OF BUTTON CELL MERCURIC-
                   OXIDE BATTERIES.

       No person shall sell, offer for sale, or offer for 
     promotional purposes any button cell mercuric-oxide battery 
     on or after January 1, 1995.

     SEC. 206. LIMITATIONS ON THE SALE OF MERCURIC-OXIDE 
                   BATTERIES.

       No person shall sell, offer for sale, or offer for 
     promotional purposes, any mercuric-oxide battery on or after 
     January 1, 1997.
                                  ____

                                             Portable Rechargeable


                                          Battery Association,

                                       Atlanta, GA, March 9, 1994.
     Hon. Frank R. Lautenberg,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Lautenberg: I write on behalf of the Portable 
     Rechargeable Battery Association (``PRBA'') to express our 
     support for the ``Mercury-Containing and Rechargeable Battery 
     Management Act.''
       PRBA is a non-profit trade association representing 
     manufacturers, distributors, assemblers, users, suppliers and 
     sellers of rechargeable batteries and rechargeable consumer 
     products.\1\ We have over one hundred twenty members, 
     including manufacturers of approximately 95 percent of the 
     world's nickel-cadmium batteries, manufacturers of 
     approximately 60 percent of the world's small sealed lead-
     acid batteries, and manufacturers of almost 50 percent of the 
     world's rechargeable consumer products.
---------------------------------------------------------------------------
     \1\Rechargeable batteries are used in a variety of consumer 
     products including portable telephones, portable power tools, 
     cameras, camcorders, lap-top computers and flashlights. These 
     batteries also are widely used commercially in police radios, 
     pagers, emergency lighting, hospitals and other applications.
---------------------------------------------------------------------------
       Our goal is to play a leadership role in the 
     environmentally responsible stewardship of rechargeable 
     batteries and products. To this end, we are assisting several 
     states, including the State of New Jersey, as well as local 
     governments in establishing collection and recycling programs 
     for these batteries and products. Later this year, PRBA 
     expects to launch a national battery collection program for 
     used rechargeable batteries. This program will eventually 
     collect rechargeable batteries from all 50 states for 
     recycling.
       Your legislation would greatly assist our efforts to 
     collect rechargeable batteries for recycling. It would 
     require that all rechargeable batteries and battery packs 
     containing nickel-cadmium and lead-acid electrodes be easily 
     removable from consumer products, be labeled with a recycling 
     symbol and contain the chemical name or abbreviation to 
     facilitate sortation of the batteries for recycling. 
     Retailers of batteries and consumer products (shavers, lap-
     top computers, etc.) would be required to provide information 
     indicating that such batteries and battery packs must be 
     recycled or disposed of properly. Following implementation of 
     the Act, EPA would be required to report to Congress on the 
     amount of rechargeable batteries entering the municipal solid 
     waste stream, the recycling rates for rechargeable batteries, 
     and a list of organizations participating and not 
     participating in collection and recycling programs for 
     rechargeable batteries.
       This legislation also would phase-out the use of mercury in 
     certain batteries by prohibiting the intentional introduction 
     of mercury in batteries manufactured after January 1, 1996. 
     By phasing-out the use of mercury in batteries and providing 
     for the efficient and cost-effective collection and recycling 
     of rechargeable batteries, your legislation will reduce the 
     quantity of certain heavy metals from entering the municipal 
     solid waste stream.
       We thank you for your efforts to address these issues, and 
     look forward to working with you and your staff to obtain 
     enactment of this legislation.
           With best wishes,
                                                   Frank Westfall,
                                Chairman, PRBA Board of Directors.
                                  ____

                                               National Electrical


                                    Manufacturers Association,

                                    Washington, DC, March 9, 1994.
     Hon. Frank R. Lautenberg,
     U.S. Senate, Hart Building,
     Washington, DC.

     Subject: Mercury Containing and Rechargeable Battery 
         Management Act.

       Dear Senator Lautenberg: It is my pleasure to introduce 
     myself as the Manager of Environmental Affairs at the 
     National Electrical Manufacturers Association (NEMA). NEMA is 
     the principal national trade association for manufacturers in 
     the electrical industry representing over 600 domestic 
     manufacturers of products used in the generation, 
     transmission, distribution and end-use of electrical energy.
       This letter is written on behalf of the members of Dry 
     Battery Section of the National Electrical Manufacturers 
     Association (NEMA), which is the trade association for United 
     States manufacturers of dry cell batteries. Members of the 
     NEMA dry Battery Section include Duracell, Eveready, Rayovac, 
     Eastman Kodak and other companies.
       NEMA wishes to voice its support of the ``Mercury-
     Containing and Rechargeable Battery Management Act''. Your 
     leadership in introducing this important bill is greatly 
     appreciated.
       Manufacturers appreciate the introduction of this bill 
     which recognizes the differences in various battery systems, 
     and uses these distinctions to provide effective methods of 
     lessening the quantities of toxic materials entering the 
     waste stream.
       Please let us know if NEMA can provide further support.
           Sincerely,
                                              Richard H. Robinson,
                           Manager, Environmental Affairs.
                                 ______

      By Mrs. KASSEBAUM (for herself and Mr. Hatch):
  S. 1950. A bill to amend the Occupational Safety and Health Act of 
1970 to make needed revisions in regulations and programs, and for 
other purposes; to the Committee on Labor and Human Resources.


               occupational safety and health reform act

  Mrs. KASSEBAUM. Mr. President, today I rise to introduce, with 
Senator Hatch, the Occupational Safety and Health Reform Act, which 
offers a fresh perspective to workplace safety that I believe is long 
overdue. Instead of relying on mandates and penalties, this legislation 
provides positive incentives for employers to address occupational 
safety.
  This bill is a companion bill, with minor modification, to the 
legislation that Representative Fawell introduced in the House of 
Representatives. I would like to thank Representative Fawell for his 
leadership on this issue. He deserves a great deal of credit for 
approaching health and safety in a new and innovative way.
  Mr. President, Congress first enacted our current workplace safety 
law, the Occupational Safety and Health Act, in 1970. We imposed a 
legal duty on employers to provide a safe and healthy workplace, and we 
created a new agency within the Department of Labor--the Occupational 
Safety and Health Administration [OSHA]--to promulgate and enforce 
health and safety standards.
  When Congress first passed workplace safety legislation, we 
envisioned a Government agency that would work in partnership with 
private industry to improve working conditions for our country's men 
and women. We hoped employers would not fear OSHA inspections, because 
we anticipated OSHA would use inspections as an opportunity to educate 
supervisors on methods to improve workplace safety.
  Mr. President, I am not sure whether the Federal Government ever took 
that approach with the business community, but if that partnership ever 
did exist, it regrettably does not exist right now.
  Over the past 20 years, we have developed an adversarial relationship 
between the Federal Government and the private sector. OSHA and private 
industry no longer view their relationship as an alliance. Part of the 
problem is that OSHA too often relies on fines and penalties rather 
than on education and consultation. And part of the problem is that 
OSHA too often focuses on paperwork violations rather than on real 
safety deficits. As a result, OSHA has lost must of its credibility 
with the American people.
  The legislation that we are introducing today reverses this course. 
Rather than rely on more mandates and fines, which promote as 
adversarial relationship, this reform bill provides positive incentives 
for employers to address health and safety issues. My hope is that this 
will change OSHA's role from safety policeman to safety coach.
  Under this new reform initiative, those employers utilizing certified 
private sector safety experts to conduct safety audits would be exempt 
from regular OSHA inspections. In addition, employers with exemplary 
safety records that have implemented comprehensive safety programs also 
would be exempt from regular inspections. Finally, these employers 
would be eligible for reduced OSHA fines if a workplace accident did 
occur.
  There are several other provisions that I would like to highlight. 
For the first time, we have incorporated full congressional coverage 
into our workplace safety laws. Clearly we must learn to live by the 
same laws that we impose upon others.
  Second, we have included, with minor modification, the Teamwork for 
Employees And Management [TEAM] Act, S. 669, in the OSHA bill to assure 
that employers and employees can meet to discuss safety issues without 
violating our Federal labor laws. Employee involvement is crucial to 
identifying workplace hazards. The TEAM Act allows the myriad of 
employee involvement programs to continue without requiring it in a 
one-size-fits-all mandate.
  Third, we have expanded the on-site consultation program to assure 
that OSHA fulfills its obligation to work in partnership with the 
business community. Fourth, we have included a mediation procedure to 
facilitate resolution of conflicts when OSHA charges an employer with 
violating an OSHA standard or regulation.
  In addition, we have avoided placing an enormous unfunded mandate on 
State and local governments. Unlike the legislation introduced by 
Senator Kennedy, S. 575, we do not impose Federal workplace safety 
standards on State governments.
  Furthermore, we provide more flexibility for States that choose to 
operate their own safety programs. Under the legislation introduced 
today, we authorize the Federal Government to grant broad waiver 
authority for States to experiment with cutting edge, innovative 
methods of improving workplace safety.
  Mr. President, workplace safety is an important issue. The current 
system has failed to produce the type of consensus that Congress 
contemplated when it passed the Occupational Safety and Health Act in 
1970. I hope that the Senate will act promptly on this legislation so 
we can truly assure every working man and woman a safe and healthy 
workplace.
  I ask unanimous consent that the legislation be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1950

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the 
     ``Occupational Safety and Health Reform Act''.
       (b) Reference.--Whenever in this Act an amendment or repeal 
     is expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
     seq.).

     SEC. 2. PUBLIC EMPLOYEES.

       (a) Definition of Employer.--Section 3(5) (29 U.S.C. 
     652(5)) is amended to read as follows:
       ``(5) The term `employer'--
       ``(A) means a person engaged in a business affecting 
     commerce who has employees;
       ``(B) includes a congressional employer and any person 
     acting directly or indirectly in the interest of an employer 
     in relation to an individual employed by any entity of the 
     executive or judicial branch of the Government; and
       ``(C) does not include any State or political subdivision 
     of a State.''.
       (b) Definition of Congressional Employer.--Section 3 (29 
     U.S.C. 652) is amended by adding at the end at the following 
     new paragraph:
       ``(15) The term `congressional employer' means an 
     individual who has the final authority to appoint, hire, and 
     set the terms, conditions, or privileges of the congressional 
     employment of any individual employed by any entity of the 
     legislative branch of the Government.''.
       (c) Repeals and Conforming Amendments.--
       (1) Section 19 (29 U.S.C. 668) is repealed.
       (2) Section 410(b) of title 39, United States Code, is 
     amended--
       (A) by striking paragraph (7);
       (B) in paragraph (9), by striking ``and'';
       (C) in paragraph (10), by striking the period and inserting 
     ``; and''; and
       (D) by redesignating paragraphs (8), (9), (10), and (11) as 
     paragraphs (7), (8), (9), and (10), respectively.
       (3) Section 1312(c) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2297b-11(c)) is amended--
       (A) by striking ``sections 3(5), 4(b)(1), and 19'' and 
     inserting ``sections 3(5) and 4(b)(1)''; and
       (B) by striking ``(29 U.S.C. 652(5), 653(b)(1), and 668))'' 
     and inserting ``(29 U.S.C. 652(5) and 653(b)(1))''.

     SEC. 3. OCCUPATIONAL SAFETY AND HEALTH STANDARDS.

       (a) Regulatory Flexibility Analysis.--Section 6 (29 U.S.C. 
     655) is amended by adding at the end the following new 
     subsections:
       ``(h) In promulgating any occupational safety and health 
     standard under subsection (b), the Secretary shall perform a 
     regulatory flexibility analysis described in sections 603 and 
     604 of title 5, United States Code.
       ``(i) In promulgating any occupational safety and health 
     standard under subsection (b), the Secretary shall minimize 
     the time, effort, and costs involved in the retention, 
     reporting, notifying, or disclosure of information to the 
     Secretary, to third parties, or to the public to the extent 
     consistent with the purpose of the standard. Compliance with 
     the requirement of this subsection may be included in a 
     review under subsection (f).''.
       (b) Economic Impact Analysis.--The Secretary of Labor shall 
     conduct a continuing comprehensive analysis of the costs and 
     benefits of each standard in effect under section 6 of the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 655). 
     The Secretary shall first report the results of such analysis 
     to Congress upon the expiration of 2 years after the date of 
     the enactment of this Act and shall make such report every 2 
     years thereafter.

     SEC. 4. VARIANCES.

       Section 6(d) (29 U.S.C. 655(d)) is amended by adding at the 
     end the following new sentence: ``No citation shall be issued 
     for a violation of an occupational safety and health standard 
     that is the subject of an application for a variance (which 
     has been pending before the Secretary for at least 90 days), 
     during the period the application is pending before the 
     Secretary.''.

     SEC. 5. INSPECTIONS.

       (a) Training and Authority of Secretary.--Section 8 (29 
     U.S.C. 657) is amended by redesignating subsection (g) as 
     subsection (l) and by adding after subsection (f) the 
     following new subsections:
       ``(g) Inspections shall be conducted under this section by 
     at least one individual who has training in and is 
     knowledgeable of the industry or types of hazards being 
     inspected.
       ``(h) The Secretary shall enter into agreements with other 
     Federal agencies and with States to train the inspection 
     personnel of agencies that conduct inspections of employers 
     to determine if employee fire protection is adequate and to 
     identify recognizable dangerous conditions, and shall 
     establish a system for the referral of information with 
     respect to fire hazards and such dangerous conditions to the 
     Secretary.
       ``(i)(1) Except as provided in paragraph (2), the Secretary 
     shall not conduct routine inspections of, or enforce any 
     standard, rule, regulation, or order under this Act with 
     respect to--
       ``(A) any person who is engaged in a farming operation that 
     does not maintain a temporary labor camp and that employs 10 
     or fewer employees; or
       ``(B) any employer of not more than 10 employees if such 
     employer is included within a category of employers having an 
     occupational injury or a lost work day case rate (determined 
     under the Standard Industrial Classification Code for which 
     such data are published) that is less than the national 
     average rate as most recently published by the Secretary 
     acting through the Bureau of Labor Statistics under section 
     24.
       ``(2) Paragraph (1) shall, in the case of persons who are 
     not engaged in farming operations, not be construed to 
     prevent the Secretary from--
       ``(A) providing consultations, technical assistance, and 
     educational and training services and conducting surveys and 
     studies under this Act;
       ``(B) conducting inspections or investigations in response 
     to employee's complaints, issuing citations for violations of 
     this Act found during such an inspection, and assessing a 
     penalty for violations that are not corrected within a 
     reasonable abatement period;
       ``(C) taking any action authorized by this Act with respect 
     to imminent dangers;
       ``(D) taking any action authorized by this Act with respect 
     to health standards;
       ``(E) taking any action authorized by this Act with respect 
     to a report of an employment accident that is fatal to at 
     least one employee or that results in the hospitalization of 
     at least three employees, and taking any action pursuant to 
     an investigation conducted with respect to such report; and
       ``(F) taking any action authorized by this Act with respect 
     to complaints of discrimination against employees for 
     exercising their rights under this Act.''.
       (b) Employee Notice.--Section 8(f)(1) (29 U.S.C. 657(f)(1)) 
     is amended--
       (1) in the third sentence, by striking ``he shall make'' 
     and inserting ``the Secretary may make''; and
       (2) in the fourth sentence--
       (A) by striking ``determines there'' and inserting 
     ``determines that there''; and
       (B) by striking ``he shall notify'' and inserting ``or that 
     the facts alleged in the notification do not justify an 
     exercise of the Secretary's inspection authority under 
     subsection (a) for any reason consistent with the standard 
     used by the Secretary to choose subjects for inspection under 
     such subsection, the Secretary shall notify''.

     SEC. 6. WORKSITE BASED INITIATIVES.

       (a) Program.--The Act is amended by inserting after section 
     8 the following new section:

     ``SEC. 8A. HEALTH AND SAFETY REINVENTION INITIATIVES.

       ``(a) In General.--The Secretary shall by regulation 
     establish a program to encourage voluntary employer and 
     employee efforts to provide safe and healthful working 
     conditions.
       ``(b) Exemption.--In establishing a program under 
     subsection (a), the Secretary shall, in accordance with 
     subsection (c), provide an exemption from all safety and 
     health inspections and investigations with respect to a place 
     of employment maintained by an employer, except inspections 
     and investigations conducted for the purpose of--
       ``(1) determining the cause of a workplace accident that 
     resulted in the death of one or more employees or the 
     hospitalization of three or more employees;
       ``(2) responding to a request for an inspection pursuant to 
     section 8(f)(1); or
       ``(3) carrying out a special emphasis program under section 
     8.
       ``(c) Exemption Requirements.--In order to qualify for the 
     exemption provided under subsection (b), an employer shall 
     provide evidence that--
       ``(1) during the preceding year, the place of employment or 
     conditions of employment have been reviewed or inspected 
     under--
       ``(A) a consultation program provided by recipients of 
     grants under section 7(c)(1), 16 (c) or (d), or 23(g);
       ``(B) a certification or consultation program provided by 
     an insurance carrier or other private business entity 
     pursuant to a State program, law, or regulation; or
       ``(C) a workplace consultation program provided by a person 
     certified by the Secretary for purposes of providing such 
     consultations,

     that includes a means of ensuring that serious hazards 
     identified in the consultation are corrected within an 
     appropriate time; or
       ``(2) the place of employment has an exemplary safety 
     record and the employer maintains a safety and health program 
     for the workplace that includes--
       ``(A) procedures for assessing hazards to the employer's 
     employees that are inherent to the employer's operations or 
     business;
       ``(B) procedures for correcting or controlling such hazards 
     in a timely manner based upon the severity of the hazard; and
       ``(C) employee participation in the program that includes 
     at the least--
       ``(i) regular consultation between the employer and 
     nonsupervisory employees regarding safety and health issues;
       ``(ii) assurances that participating nonsupervisory 
     employees have training or expertise on safety and health 
     issues consistent with the responsibilities of such 
     employees; and
       ``(iii) the opportunity for nonsupervisory employees to 
     make recommendations regarding hazards in the workplace and 
     to receive responses or to implement improvements in response 
     to such recommendations.
       ``(d) Applicability to the National Labor Relations Act.--
     In order to carry out the purposes of this Act and to 
     encourage employers and employees in their efforts to reduce 
     the number of occupational safety and health hazards, section 
     8(a)(2) of the National Labor Relations Act shall not apply 
     to an employer that establishes, assists, maintains, or 
     participates in any organization, health and safety 
     committee, or other entity of any kind--
       ``(1) in which employees participate to discuss matters of 
     mutual interest (including issues of health and safety, 
     quality, productivity, or efficiency); and
       ``(2) that does not have, claim, or seek authority, to 
     negotiate or enter into collective bargaining agreements 
     under such Act with the employer or, to amend existing 
     collective bargaining agreements between the employer and any 
     labor organization.
       ``(e) Certification.--The Secretary may require that an 
     employer in order to claim the exemption under subsection (b) 
     give certification to the Secretary and notice to the 
     employer's employees of such eligibility.
       ``(f) Records.--Records of safety and health inspections, 
     audits, or reviews conducted by an employer and not required 
     by this Act shall not be required to be disclosed to the 
     Secretary except as may be necessary to determine eligibility 
     for an exemption from inspection under this section.''.
       (b) Definition.--Section 3 (29 U.S.C. 652) as amended by 
     section 2(b) is further amended by adding at the end the 
     following new paragraph:
       ``(16) The term `exemplary safety record' means such record 
     as the Secretary shall annually determine for each industry. 
     Such record shall include employers that have had, in the 
     most recent reporting period, no employee death caused by 
     occupational injury and fewer lost workdays due to 
     occupational injury and illness than the average for the 
     industry of which the employer is a part.''.

     SEC. 7. EMPLOYER DEFENSES.

       Section 9 (29 U.S.C. 658) is amended by adding at the end 
     the following new subsections:
       ``(d) No citation may be issued under subsection (a) to an 
     employer unless the employer knew or with the exercise of 
     reasonable diligence would have known of the presence of the 
     alleged violation. No citation shall be issued under 
     subsection (a) to an employer for an alleged violation of 
     section 5, any standard, rule, or order promulgated pursuant 
     to section 6, any other regulation promulgated under this 
     Act, or any other occupational safety and health standard, if 
     such employer demonstrates that--
       ``(1) employees of such employer have been provided with 
     the proper training and equipment to prevent such a 
     violation;
       ``(2) work rules designed to prevent such a violation have 
     been established and adequately communicated to employees by 
     such employer and the employer has taken reasonable measures 
     to discipline employees when violations of such work rules 
     have been discovered;
       ``(3) the failure of employees to observe work rules led to 
     the violation; and
       ``(4) reasonable steps have been taken by such employer to 
     discover any such violation.
       ``(e) A citation issued under subsection (a) to an employer 
     who violates the requirements of section 5, of any standard, 
     rule, or order promulgated pursuant to section 6, or any 
     other regulation promulgated, under this Act shall be vacated 
     if such employer demonstrates that employees of such employer 
     were protected by alternative methods equally or more 
     protective of the employee's safety and health than those 
     required by such standard, rule, order, or regulation in the 
     factual circumstances underlying the citation.
       ``(f) Subsections (d) and (e) shall not be construed to 
     eliminate or modify other defenses that may exist to any 
     citation.''.

     SEC. 8. THE OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION.

       (a) Section 10.--Section 10(c) (29 U.S.C 659(c)) is 
     amended--
       (1) in the first sentence, by striking ``fifteen working 
     days'' and inserting ``30 working days''; and
       (2) by striking the second sentence and inserting the 
     following: ``The Commission shall issue an order, based on de 
     novo findings of fact and de novo conclusions of law, 
     affirming, modifying, or vacating the Secretary's citation or 
     proposed penalty or directing other appropriate relief. Such 
     order shall become final 30 days after such order is 
     issued.''.
       (b) Section 11.--Section 11(a) (29 U.S.C 660(a)) is amended 
     by inserting after ``conclusive'' at the end of the sixth 
     sentence the following: ``and the Commission's conclusions 
     with respect to questions of law shall be given deference if 
     reasonable''.

     SEC. 9. DISCRIMINATION.

       Section 11(c) (29 U.S.C. 660(c)) is amended by striking 
     paragraphs (2) and (3) and inserting the following new 
     paragraphs:
       ``(2) Any employee who believes that the employee has been 
     discharged or otherwise discriminated against by any person 
     in violation of paragraph (1) or who believes that the 
     employee has been discharged or discriminated against because 
     of an action taken by the employee's employer in violation of 
     section 28, may, not later than 60 days after the date on 
     which such violation occurs, file a complaint with the 
     Secretary alleging such discrimination. Upon receipt of such 
     a complaint, the Secretary shall notify the person named in 
     the complaint and commence an investigation to determine if 
     the Secretary should, on behalf of such employee, file such 
     complaint with the Commission to request the Commission to 
     take action on the basis of such complaint. The Secretary 
     shall make such determination not later than 90 days after 
     the filing of such complaint.
       ``(3) If within such 90-day period, the Secretary does not 
     file a complaint on behalf of the complainant with the 
     Commission, such employee may file such complaint with the 
     Commission. If such a complaint is filed with the Commission, 
     the Commission shall provide opportunity for a hearing (in 
     accordance with section 554 of title 5, United States Code, 
     but without regard to subsection (a)(3) of such section), and 
     issue an order, based upon findings of fact and conclusions 
     of law. In such an order, the Commission may require a person 
     charged with committing a violation of paragraph (1) to take 
     appropriate affirmative action, including the rehiring or 
     reinstatement of the employee to the employee's former 
     position with back pay and interest. Upon completion of a 
     proceeding on such order, the Commission may award the 
     prevailing party a reasonable attorney's fee. Final orders of 
     the Commission may be appealed as provided in subsection (a).
       ``(4)(A) Anytime after a complaint has been filed with the 
     Secretary alleging a violation of paragraph (1), the 
     complaining employee, the person charged with committing the 
     violation (referred to in this paragraph as the 
     `respondent'), or the Secretary has the right to request that 
     the complaint be referred to the Federal Mediation and 
     Conciliation Service (referred to in this paragraph as the 
     `Service') for mediation of the dispute. In lieu of receiving 
     mediation services from the Service, the parties may upon 
     mutual agreement refer the complaint to a mediator other than 
     a mediator provided by the Service.
       ``(B) During mediation, the respondent and the complaining 
     party may be represented by legal counsel or other 
     representative of such respondent's or party's choice.
       ``(C)(i) All contested proceedings shall be stayed during 
     the time for mediation and neither the Secretary nor the 
     complaining party shall file a complaint pending completion 
     of the mediation.
       ``(ii) The mediator shall have 60 days from the date of the 
     referral to mediate to complete the mediation. If the 
     complaint has not been resolved within such 60-day period or 
     such extension as may be agreed upon, the mediation shall be 
     deemed to be completed. The parties may extend the mediation 
     for an additional 60 days by mutual agreement.
       ``(iii) The complaint shall be resolved through mediation 
     in a manner that is mutually agreeable to the parties. The 
     resolution of the complaint shall be binding upon the parties 
     and shall preclude resort to other legal proceedings except 
     as provided in subparagraph (E).
       ``(D)(i) Any agreement shall be kept confidential by the 
     parties to the mediation unless all parties to the mediation 
     agree otherwise in writing.
       ``(ii) All communications, oral or written, made in 
     connection with the mediation (including memoranda, work 
     product, transcripts, notes, or other materials) shall be 
     kept confidential by the participants to the mediation.
       ``(iii) The material referred to in clause (ii) shall not 
     be subject to disclosure through discovery or compulsory 
     process and shall not be used as evidence in any 
     investigatory, arbitral, judicial, administrative, or other 
     proceeding.
       ``(E) A party to an agreement made pursuant to mediation 
     under this paragraph may bring an action to enforce the 
     agreement in any Federal or State court of competent 
     jurisdiction.
       ``(F) Except as provided in subparagraph (C)(iii), nothing 
     in this paragraph shall be interpreted to effect or modify 
     whatever rights and obligations the parties may have under 
     arbitration agreements or other form of alternative dispute 
     resolution mechanisms.''.

     SEC. 10. ENFORCEMENT.

       (a) Special Conditions and Practices.--Section 13 (29 
     U.S.C. 662) is amended--
       (1) by striking subsection (c);
       (2) by redesignating subsections (a) and (b) as subsections 
     (b) and (c), respectively; and
       (3) by inserting before subsection (b) (as so redesignated) 
     the following new subsection:
       ``(a)(1) If the Secretary determines, on the basis of an 
     inspection or investigation under this section, that a 
     condition or practice in a place of employment is such that 
     an imminent danger to safety or health exists that could 
     reasonably be expected to cause death or serious physical 
     harm or permanent impairment of the health or functional 
     capacity of employees if not corrected immediately or before 
     the imminence of such danger can be eliminated through the 
     enforcement procedures otherwise provided by this Act, the 
     Secretary may so inform the employer and provide notice by 
     posting to the affected employees and shall request that the 
     condition or practice be corrected immediately or that 
     employees be immediately removed from exposure to such 
     danger. The notice shall be removed by the Secretary from the 
     place of employment not later than 72 hours after the notice 
     was first posted unless a court in an action brought under 
     subsection (c) requires that the notice be maintained. The 
     Secretary shall not prevent the continued activity of 
     employees whose presence is necessary to avoid, correct, or 
     remove such imminent danger or to maintain the capacity of a 
     continuous process operation to resume normal operations 
     without a cessation of operations or where cessation of 
     operations is necessary, to permit such to be accomplished in 
     a safe and orderly manner.
       ``(2) No person shall discharge or in any manner 
     discriminate against any employee because such employee has 
     refused to perform a duty that has been identified as the 
     source of an imminent danger by a notice posted pursuant to 
     paragraph (1).''.
       (b) Mandatory Special Emphasis.--Section 8 (29 U.S.C. 657), 
     as amended by section 6, is further amended by adding after 
     subsection (i) the following new subsection:
       ``(j)(1) The Secretary shall establish and carry out a 
     special emphasis program for identifying and correcting 
     existing or newly recognized hazards in selected industries 
     and operations and high hazard industries and operations.
       ``(2) Each special emphasis program under paragraph (1) 
     shall consist of a planned and coordinated effort, including 
     outreach, education and training programs, and inspections. 
     Prior to beginning any such program, the Secretary shall meet 
     and discuss with representatives of employers and employees 
     in the industries affected by such program the intended goals 
     and benefits of such program, the number of inspections under 
     such program, and the nature of other activities planned. To 
     the extent practicable, the Secretary shall coordinate 
     efforts with such representatives. Each such program shall 
     have a date of termination and shall include methods of 
     evaluating the effectiveness of the program in reducing 
     illness and injury in the targeted industries or 
     operations.''.
       (c) Investigations of Deaths and Serious Incidents.--
     Section 8 (29 U.S.C. 657), as amended by subsection (b), is 
     further amended by inserting after subsection (j) the 
     following new subsection:
       ``(k)(1) The Secretary shall investigate any work-related 
     death or serious incident.
       ``(2) If a death or serious incident occurs in a place of 
     employment covered by this Act, the employer shall notify the 
     Secretary of the death or serious incident.
       ``(3) As used in this subsection or section 17, the term 
     `serious incident' means an incident that results in the 
     hospitalization of three or more employees. The Secretary 
     shall by regulation define `hospitalization'.''.

     SEC. 11. PENALTIES.

       (a) In General.--Section 17 (29 U.S.C. 666) is amended--
       (1) by striking subsections (a), (b), (c), (j), and (k);
       (2) by redesignating subsections (d), (e), (f), (g), (h), 
     (i), and (l) as subsections (b), (c), (d), (e), (f), (g), and 
     (h), respectively; and
       (3) by inserting before subsection (b) (as so redesignated) 
     the following new subsection:
       ``(a)(1) Any employer who violates the requirements of 
     section 5, any standard, rule, or order promulgated pursuant 
     to section 6, or any other regulation promulgated under this 
     Act may be assessed a civil penalty of not to exceed $7,000. 
     The Commission shall have authority to assess all civil 
     penalties provided in this section, giving due consideration 
     to the appropriateness of the penalty with respect to--
       ``(A) the size of the employer;
       ``(B) the number of employees exposed to the violation;
       ``(C) the likely severity of any injuries directly 
     resulting from such violation;
       ``(D) the probability that the violation could result in 
     injury or illness;
       ``(E) the employer's good faith in correcting the violation 
     after it has been identified;
       ``(F) the extent to which employee misconduct was 
     responsible for the violation;
       ``(G) the effect of the penalty on the employer's ability 
     to stay in business; and
       ``(H) whether the violation is the sole result of the 
     failure to meet a requirement, under this Act or prescribed 
     by regulation, with respect to the posting of notices, the 
     preparation or maintenance of occupational safety and health 
     records, or the preparation, maintenance, or submission of 
     any written information.
       ``(2)(A) A penalty assessed under paragraph (1) shall be 
     reduced by 25 percent in any case in which the employer--
       ``(i) maintains a safety and health program for the 
     worksite at which the violation for which the penalty was 
     assessed took place; or
       ``(ii) shows that the worksite at which the violation for 
     which the penalty was assessed took place has an exemplary 
     safety record.

     If the employer maintains a program described in clause (i) 
     and has the record described in clause (ii), the penalty 
     shall be reduced by 50 percent.
       ``(B) No penalty shall be assessed against an employer for 
     a violation other than a violation that--
       ``(i) has been previously cited by the Secretary;
       ``(ii) creates an imminent danger;
       ``(iii) has caused death; or
       ``(iv) has caused a serious incident,

     if the worksite at which such violation occurred has been 
     reviewed or inspected under a program described in section 
     8A(c)(1) during the 1-year period before the date of the 
     citation for such violation, and such employer has complied 
     with recommendations to bring such employer into compliance 
     within a reasonable period of time.''.
       (b) Special Assessments.--Section 17 (29 U.S.C. 666), as 
     amended by subsection (a), is further amended by adding at 
     the end the following new subsection:
       ``(i) The Secretary shall, by regulation, prescribe 
     procedures for determining that conditions surrounding a 
     violation warrant a special assessment. Such regulation shall 
     provide that all findings shall be in narrative form and 
     provide for individual review of violations for special 
     assessment in the following circumstances:
       ``(1) Violations causing fatalities.
       ``(2) An excessive history of serious incidents or a 
     pattern of violations of this Act that cause or are likely to 
     cause death or serious incidents.

     When the Secretary determines that a special assessment is 
     appropriate, the Secretary may apply an appropriate 
     multiplier, based on the factors described in subsection (a), 
     of not greater than 10 to the penalty determined under 
     subsection (a). In addition to any fines assessed with 
     respect to the violations described in paragraphs (1) and 
     (2), the Secretary may require the employer involved to 
     establish a comprehensive safety and health program for the 
     worksite at which the violations occurred and provide regular 
     certification to the Secretary that such employer is in 
     compliance with such program.''.
       (c) Citations.--Section 17 (29 U.S.C. 666), as amended by 
     subsection (b), is further amended by adding at the end the 
     following new subsection:
       ``(j) Nothing in this Act shall be construed as requiring 
     the Secretary to issue a citation for violations of this Act 
     if the Secretary believes that the public interest will be 
     adequately served by a suitable written notice or warning.''.
       (d) Victim's Rights.--Section 10 (29 U.S.C. 659) is amended 
     by adding at the end the following new subsection:
       ``(d)(1) The Secretary shall provide any individual who is 
     a victim of a violation of this Act with--
       ``(A) access to information with respect to any 
     investigation of the Secretary or hearing by the Commission 
     of such violation, to citations issued for such violation, to 
     penalties imposed under this section for such violation, and 
     to settlements made with respect to such violation; and
       ``(B) an opportunity to meet with the Secretary or a 
     representative of the Secretary with respect to such 
     violation.
       ``(2) For purposes of paragraph (1), the term `victim' 
     means--
       ``(A) an employee who has sustained a work-related injury 
     or illness that is the subject of an inspection or 
     investigation conducted under section 8; or
       ``(B) a family member of an employee described in 
     subparagraph (A) who is killed as a result of such injury or 
     illness.''.

     SEC. 12. STATE PROGRAMS.

       Section 18(c) (29 U.S.C. 667(c)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``and which'' and inserting ``which''; and
       (B) by inserting after the comma at the end the following: 
     ``and which, standards when applicable to the labeling, 
     content, and hazard information for such products, are 
     identical to any requirement under a standard promulgated 
     under section 6,''; and
       (2) in paragraph (4), by inserting before the comma the 
     following: ``in a manner at least as effective as enforcement 
     by the Secretary''; and
       (3) by adding at the end the following new flush sentence:

     ``The Secretary may waive any of the requirements of this 
     subsection (other than the requirement of paragraph (2)) upon 
     the request of a State seeking approval of a plan or an 
     amendment to an approved plan. Such a waiver shall not extend 
     for more than 3 years but may be renewed if the Secretary 
     determines that the rate of occupational fatalities, 
     injuries, and illnesses has declined in such State during the 
     period of the waiver.''.

     SEC. 13. PREVENTION OF ALCOHOL AND SUBSTANCE ABUSE.

       The Act is amended--
       (1) by striking sections 28 through 31;
       (2) by redesignating sections 32, 33, and 34 as sections 
     29, 30, and 31, respectively; and
       (3) by inserting after section 27 (29 U.S.C. 676) the 
     following new section:

     ``SEC. 28 ALCOHOL AND SUBSTANCE ABUSE TESTING.

       ``(a) Testing Programs.--Whenever there exists the 
     reasonable probability that the safety or health of any 
     employee could be endangered because of the use of alcohol or 
     a controlled substance in the workplace, the employer of such 
     employee may establish and implement an alcohol and substance 
     abuse testing program in accordance with subsection (b).
       ``(b) Standards.--The Secretary shall establish standards 
     under section 6 for substance abuse and alcohol testing 
     programs established under subsection (a) as follows:
       ``(1) Substance abuse guidelines.--The substance abuse 
     testing program shall conform, to the maximum extent 
     practicable, to subpart B of the mandatory guidelines for 
     Federal workplace drug testing programs published on April 
     11, 1988, by the Secretary of Health and Human Services at 53 
     Federal Register 11979 and any amendments adopted to such 
     guidelines.
       ``(2) Alcohol guidelines.--The alcohol testing program 
     shall take the form of alcohol breath analysis and shall 
     conform, to the maximum extent practicable, to any guidelines 
     developed by the Secretary of Transportation for alcohol 
     testing of mass transit employees under the Department of 
     Transportation and Related Agencies Appropriations Act, 1992.
       ``(c) Construction.--This section shall not be construed to 
     prohibit an employer from requiring an employee to submit to 
     and pass an alcohol or substance abuse test--
       ``(1) on a for cause basis or where the employer has 
     reasonable suspicion to believe that such employee is using 
     or is under the influence of alcohol or a controlled 
     substance;
       ``(2) where such test is administered as part of a 
     scheduled medical examination;
       ``(3) in the case of an accident or incident involving the 
     actual or potential loss of human life, bodily injury, or 
     property damage;
       ``(4) during and for a reasonable period of time (not to 
     exceed 5 years) after the conclusion of an alcohol or 
     substance abuse treatment program;
       ``(5) on a random selection basis in work units, locations, 
     or facilities where alcohol and substance abuse has been 
     identified as a problem or as part of a universal testing 
     program; or
       ``(6) on a preemployment basis.''.

     SEC. 14. SMALL BUSINESS ASSISTANCE AND TRAINING.

       Section 16 (29 U.S.C. 665) is amended--
       (1) by inserting ``(a)'' after the section designation; and
       (2) by adding at the end the following new subsections:
       ``(b) The Secretary shall publish and make available to 
     employers a model injury prevention program that if completed 
     by the employer shall be considered to meet the requirement 
     for an exemption under section 8A or a reduction in penalty 
     under section 17(a)(2)(A).
       ``(c) The Secretary shall establish and implement a program 
     to provide technical assistance and consultative services for 
     employers and employees, either directly or by grant or 
     contract, concerning worksite safety and health and 
     compliance with this Act. Such assistance shall be targeted 
     at small employers and the most hazardous industries.
       ``(d) This subsection authorizes the consultative services 
     to employers provided under cooperative agreements between 
     the States and the Occupational Safety and Health 
     Administration and described in part 1908 of title 39, Code 
     of Federal Regulations.
       ``(e) Not less than one-fifth of the annual appropriation 
     made to the Secretary to carry out this Act shall be expended 
     for the purposes described in this section.''.

     SEC. 15. EXEMPLARY PROGRAMS.

       (a) Establishment.--The Secretary of Labor shall establish 
     an award that shall periodically be made to companies and 
     other organizations that have implemented particularly 
     effective approaches to addressing occupational safety and 
     health in the workplace, including companies and 
     organizations that provide for effective employee involvement 
     in improving safety and health and that are as a consequence 
     deserving of special recognition. Recipients of the award 
     shall receive an automatic exemption under section 8A(b).
       (b) Use of Award.--A company or organization that is a 
     recipient of an award under subsection (a) and that agrees to 
     help other American companies or organizations improve their 
     occupational safety and health may publicize its receipt of 
     such award and use the award in its advertising.
       (c) Categories in Which Award May Be Given.--
       (1) Categories.--Subject to paragraph (2), separate awards 
     shall be made to qualifying organizations and companies in 
     each of the following categories:
       (A) Small businesses.
       (B) Other companies or their subsidiaries.
       (C) Companies that primarily perform construction work.
       (2) Change in list.--The Secretary of Labor may at any time 
     expand, subdivide, or otherwise modify the list of categories 
     within which awards may be made under paragraph (1) and may 
     establish separate awards for other organizations and 
     companies including units of government, upon a determination 
     that the objectives of this section would be better served 
     thereby, except that any such expansion, subdivision, 
     modification, or establishment shall not be effective unless 
     the Secretary of Labor has submitted a detailed description 
     thereof to the Congress and a period of 30 days has elapsed 
     since the submission.
       (d) Criteria for Qualification.--An organization or company 
     may qualify for an award under subsection (a) only if such 
     organization or company--
       (1) applies to the Secretary of Labor in writing for the 
     award;
       (2) permits a rigorous evaluation of the occupational 
     safety and health operations of such organization or company; 
     and
       (3) meets such requirements and specifications as the 
     Secretary of Labor determines to be appropriate to achieve 
     the objectives of this section.

     In applying paragraph (3) with respect to any organization or 
     company, the Secretary of Labor shall rely upon an intensive 
     evaluation of the occupational safety and health operation. 
     The examination should encompass all aspects of the current 
     occupational safety and health practice of such organization 
     or company. The award shall be given only to organizations 
     and companies that have made outstanding improvements in the 
     occupational safety and health practices of such 
     organizations and companies and that demonstrate effective 
     occupational safety and health practices through the training 
     and involvement of all levels of personnel.
       (e) Information Transfer Program.--The Secretary of Labor 
     shall ensure that all program participants receive the 
     complete results of their evaluations described under 
     subsection (d)(2), as well as detailed explanations of all 
     suggestions for improvements. The Director shall also provide 
     information about the awards and the successful safety and 
     health improvement strategies and programs of the award-
     winning participants to all participants and other 
     appropriate groups.
       (f) Funding.--The Secretary of Labor is authorized to seek 
     and accept gifts from public and private sources to carry out 
     the program under this section.
       (g) Report.--Not later than 3 years after the date of the 
     enactment of this Act, the Secretary of Labor shall prepare 
     and submit to the President and the Congress, a report on the 
     progress, findings, and conclusions of activities conducted 
     pursuant to this section along with recommendations for 
     possible modifications thereof.
  Mr. HATCH. Mr. President, I am pleased to join Senator Nancy 
Kassebaum, ranking member of the Senate Labor and Human Resources 
Committee, today in introducing the Occupational Safety and Health 
Reform Act.
  As I have commented repeatedly over the years, the goal of a safe and 
healthful workplace is not a Democrat versus Republican issue any more 
than it is an employer versus employee issue. We all agree that safety 
in American workplaces is a priority that we should all support and 
promote.
  There is significant disagreement, however, on the merits of 
different approaches to achieving this goal.
  The OSHA reform initiative that Senator Kassebaum and I are 
introducing today focuses on providing incentives rather than on 
imposing bigger fines and more mandates, and it encourages employers to 
proactively address workplace safety and health needs. It provides, for 
example, that employers using certified health and safety consultants--
either through OSHA's onsite consultation program or as part of an 
insurance carrier's loss control program--to conduct health and safety 
audits, are exempt from regular OSHA inspections. Employers with better 
than average safety records and approved health and safety programs are 
also exempt.
  These and other provisions seek to focus resources where they are 
most needed and where they can do the most good. The principal emphasis 
should be on real workplace hazards; not on minor paperwork violations. 
No workplace accident that I know of has ever been prevented by filing 
forms.
  Mr. President, I believe that this bill is a major step toward 
improving health and safety in American workplaces. It is a commonsense 
approach, and I hope my colleagues will support it.
                                 ______

      By Mr. MOYNIHAN (for himself, Mr. Mitchell, Mr. Bradley, Mr. 
        Breaux, Mr. Daschle, Mr. Pryor, Mr. Riegle, Mr. Rockefeller, 
        Mrs. Boxer, Mr. Ford, and Ms. Moseley-Braun):
  S. 1951. A bill to establish a comprehensive system of reemployment 
services, training and income support for permanently laid off workers, 
to facilitate the establishment of one-stop career centers to serve as 
a common point of access to employment, education and training 
information and services, to develop an effective national labor market 
information system, and for other purposes.


                      the reemployment act of 1994

 Mr. MOYNIHAN. Mr. President, on Tuesday of this week a Message 
from the President, transmitting the proposed Reemployment Act of 1994, 
was referred to the Committee on Finance. Today I am joined by my 
colleagues, Senators Bradley, Breaux, Daschle, Pryor, Riegle, 
Rockefeller, Boxer, Ford, and Moseley-Braun, in introducing the 
President's bill. This is the bill that Secretary of Labor Robert Reich 
has described as ``converting the unemployment system into a genuine 
reemployment system.''
  The history of the unemployment system as we know it today goes back 
to June 29, 1934, when President Franklin Delano Roosevelt signed 
Executive Order 6757, establishing a Committee on Economic Security. In 
that Executive Order the President charged the Committee with making 
recommendations on safeguards ``against misfortunes which cannot be 
wholly eliminated in this man-made world of ours.''
  Just six months later, on January 15, 1935, this Committee on 
Economic Security, ably headed by Secretary of Labor Frances Perkins, 
transmitted to the President a report setting forth a series of 
recommendations that formed the basis for the Social Security Act of 
1935, and for the social insurance system that we have today.
  One of the cornerstones of the Committee's proposals was for a 
program of unemployment insurance. As the Committee described it, 
unemployment insurance should permit a worker who is ordinarily 
steadily employed to draw a cash benefit for a limited period of 
unemployment ``during which there is expectation that he will soon be 
reemployed.''
  ``Normally,'' the report noted, ``the insured worker will return to 
his old job or find other work before his right to benefits is 
exhausted.''
  That was the vision of Frances Perkins and those who worked with her. 
But they frankly admitted that their plan was experimental. They stated 
forthrightly in the report that their plan would ``secure the much-
needed experience necessary for the development of a more nearly 
perfect system.''
  They were anticipating change.
  And there have been some changes in the unemployment program since it 
was enacted. One major change was the establishment of the extended 
benefits program in 1970 to deal with periods of more prolonged 
unemployment caused by recession.
  But over the years the unemployment insurance system has largely been 
ignored. It has served well many millions of unemployed American 
workers. But Administrations past, and the Congress, have not been 
appropriately diligent in periodically reexamining the system to make 
sure it is functioning appropriately, and accommodating to changes in 
the economy. Few would argue that we have achieved that ``more nearly 
perfect system'' that Secretary Perkins anticipated it would become.
  We are fortunate now to have a President and a Secretary of Labor who 
recognize the fundamental importance of the unemployment system for the 
economic well-being of American workers and their families.
  As Secretary Reich has noted, in recent years, because of 
technological and other changes in the economy, more and more workers 
are losing their old jobs, not temporarily, but permanently. Data for 
1993 show that nearly eight of every ten unemployed job losers did not 
expect to return to their old jobs.
  That is why President Clinton and Secretary Reich speak of the need 
to transform the unemployment system into a system of reemployment, a 
system that will help permanently dislocated workers make the 
transition to new employment.
  That is a challenging task, but one that President Roosevelt and 
Secretary Perkins would be pleased has been assumed, these 60 years 
later.
  Mr. President, I want to commend the President and Secretary Reich 
for their leadership on this important issue. I look forward to working 
with the Administration as this legislation moves forward.
  I ask unanimous consent that the text of the President's message and 
a section-by-section analysis of the bill prepared by the 
Administration be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

     To the Congress of the United States:
       I am pleased to transmit today for your immediate 
     consideration and prompt enactment the ``Reemployment Act of 
     1994''. Also transmitted is a section-by-section analysis. 
     This legislation is vital to help Americans find new jobs and 
     build sustainable careers.
       Our current set of programs was designed to meet the 
     different needs of an early economy. People looking for help 
     today confront a confusing, overlapping, and duplicative 
     tangle of programs, services, and rules. Job seekers--whether 
     unemployed or looking for better jobs--have a difficult time 
     getting the information they need: What benefits and services 
     are available to them? Where can they get good quality 
     training? What do they need to know to find and hold good 
     jobs and to build sustainable careers?
       The underlying problem is the lack of a coherent employment 
     and training system. Instead, we have disconnected, category-
     based programs--each with distinct eligibility requirements, 
     operating cycles, and program standards. We need a true 
     system of lifelong learning--not the current hodgepodge of 
     programs, some of which work, and some of which don't. The 
     legislation I am transmitting today is an important first 
     step in building this system.
       We need to build a reemployment system because our current 
     unemployment system no longer delivers what many American 
     workers need. In the past, when a worker lost a job, he or 
     she often returned to that job as soon as the business cycle 
     picked up again and the company was ready to rehire. The 
     unemployment system was designed to tide workers over during 
     temporary dry spells. Today, when a worker loses a job, that 
     job often is gone forever.
       Our economy has generated new jobs. In 1993 alone, 1.7 
     million new private sector jobs were created--more than in 
     the previous 4 years combined. While the jobs exist, the 
     pathway to them aren't always clear.
       The Reemployment Act of 1994 strives to fix this. It is 
     based on evidence of what works for getting workers into new 
     and better jobs. Programs that work are customer-driven, 
     offering customized service, quality information, and 
     meaningful choices. Programs that work provide job search 
     assistance to help dislocated workers become reemployed 
     rapidly, feature skill training connected to real job 
     opportunities, and offer support services to make long-term 
     training practical for those who need it.
       The Act reflects six key principles:
       First is universal access and program consolidation. The 
     current patchwork of dislocated worker programs is 
     categorical, inefficient, and confusing. The Reemployment Act 
     of 1994 will consolidate six separate programs into an 
     integrated service system that focuses on what workers need 
     to get their next job, not the reason why they lost their 
     last job.
       Second is high-quality reemployment services. Most 
     dislocated workers want and need only information and some 
     basic help in assessing their skills and planning and 
     conducting their job search. These services are relatively 
     simple and inexpensive, and they have been shown to pay off 
     handsomely in reducing jobless spells.
       Third is high-quality labor market information, which must 
     be a key component of any reemployment effort. The labor 
     market information component of the Reemployment Act of 1994 
     will knit together various job data systems and show the way 
     to new jobs through expanding access to good data on where 
     jobs are and what skills they require.
       Fourth is one-stop service. At a recent conference that I 
     attended on ``What is Working'' in reemployment efforts, a 
     common experience of workers was the difficulty of getting 
     good information on available services. Instead of forcing 
     customers to waste their time and try their patience going 
     from office to office, the new system will require States to 
     coordinate services for dislocated workers through career 
     centers. It allows States to compete for funds to develop a 
     more comprehensive network of one-stop career centers to 
     serve under one roof anyone who needs help getting a first, 
     new, or better job, and to streamline access to a wide range 
     of job training and employment programs.
       The fifth principle of the legislation is effective 
     retraining for those workers who need it to get a new job. 
     Some workers need retraining. The Reemployment Act of 1994 
     will also provide workers financial support when they need it 
     to let them complete meaningful retraining programs.
       Sixth is accountability. The Reemployment Act of 1994 aims 
     to restructure the incentives facing service providers to 
     begin focusing on workers as customers. providers who deliver 
     high-quality services for the customer and achieve positive 
     outcomes will prosper in the new system. Those who fail to do 
     so will see their funding dry up.
       The Reemployment Act of 1994 will create a new 
     comprehensive reemployment system that will enhance service, 
     improve access, and assist Americans in finding good new 
     jobs. This is a responsible proposal that is fully offset 
     over the next 5 years.
       I urge the Congress to give this legislation prompt and 
     favorable consideration so that Americans will have available 
     a new, comprehensive reemployment system that works for 
     everyone.
                                               William J. Clinton.
       The White House, March 15, 1994.
                                  ____


         Reemployment Act of 1994--Section-by-Section Analysis

       The Reemployment Act of 1994 is the first step in building 
     a coherent, integrated reemployment system for the Nation. 
     The current unemployment system, designed in a different time 
     for a fundamentally different economy, is premised on the 
     expectation that laid-off workers would return to their 
     former jobs following periodic cyclical downturns in the 
     economy. Today, millions of workers are finding their jobs 
     imperiled by global economic integration and technological 
     change. Many of them do not have the skills necessary for 
     reemployment in good jobs to replace the ones they have lost.
       Workers looking for help in making workforce transitions 
     currently face a duplicative tangle of programs, services and 
     rules. Students, workers, and the unemployed have a difficult 
     time getting information on the benefits and services that 
     are available, where they can get high-quality training, and 
     what they need to know to find and hold good jobs and build 
     sustainable careers.
       The underlying problem is the lack of a coherent employment 
     and training system. The Reemployment Act of 1994 will 
     address this need by:
       Establishing a comprehensive system for reemployment 
     services, training, and income support for permanently laid-
     off workers;
       Facilitating the establishment of one-stop career centers 
     that will serve as a common point of access to employment, 
     education and training information and services;
       Developing an effective national labor market information 
     system; and
       Providing additional flexibility for States in payment of 
     unemployment insurance benefits.
       Title I of the Reemployment Act of 1994 would establish a 
     comprehensive program for reemployment of dislocated 
     workers--those who are permanently laid off or are long-term 
     unemployed. This title would consolidate and replace six 
     current programs that serve various categories of dislocated 
     workers. All workers currently eligible under existing 
     programs would be covered. The program would be administered 
     through a State and substate delivery system. State 
     Dislocated Worker Units would carry out rapid response 
     activities at the site of dislocations, substate grantees 
     would receive and administer funds, and Career Centers 
     provide a comprehensive array of reemployment services to 
     dislocated workers. Career Centers would make available to 
     all eligible dislocated workers a set of basic services, 
     including job search assistance. Intensive reemployment 
     services would be made available to dislocated workers who 
     are not able to find jobs through the basic services. Each 
     worker receiving intensive services would have a 
     reemployment plan developed jointly by the individual and 
     a career counselor which identifies an employment goal and 
     a combination of services designed to achieve the goal.
       Education and training services will be available to 
     workers who need new or higher-level skills to obtain 
     employment. To help them make decisions, workers will have 
     information about the quality of services and the local 
     economy, as well as an understanding of their career 
     objectives. Income support beyond regular UI payments will be 
     available for most dislocated workers to enable them to 
     participate in long-term training. The duration of income 
     support payments will be based on the length of training 
     needed, and on the job tenure the individual had in the last 
     job.
       Title I also establishes performance standards and quality 
     assurance systems. A customer service compact is to be 
     developed among the parties administering title I programs. 
     The Secretary is also to establish performance standards for 
     substate grantees and Career Centers, and substate grantees 
     are to establish methods for obtaining feedback from 
     customers--individuals and employers--on the effectiveness 
     and quality of services they have received. Eligibility 
     requirements are established for providers of education and 
     training services which include the provision of performance-
     based information to preclude ineffective service providers 
     from receiving Federal funds and to assist customers in 
     choosing effective services.
       Title II of the Reemployment Act of 1994 extends the focus 
     of the unemployment insurance program beyond its original 
     purpose of ensuring a source of income to workers who were 
     temporarily out of work and creates new and active options 
     which workers and employers may avail themselves to help ease 
     the often-rapid and unsettling pace of labor market 
     transition and change. First and foremost, this proposal will 
     provide income support beyond unemployment insurance benefits 
     to permanently laid-off workers who need and decide to 
     retrain for new jobs and occupations which will offer them a 
     more secure future. Second, this proposal offers new 
     flexibility in the basic unemployment insurance program so 
     that if States so chose, a short-time compensation program 
     would be available to compensate employees who are working 
     reduced hours for an employer who is attempting to avert a 
     layoff or closure. In addition, the proposal would offer a 
     new unemployment insurance option to laid-off workers in the 
     form of reemployment bonuses for those who quickly find new 
     jobs.
       Title III of the Reemployment Act establishes a program to 
     encourage States to develop and implement Statewide networks 
     of one-stop career centers, which will provide a common point 
     of access to employment, education and training 
     information and services to students, workers and 
     employers. The centers would make services available under 
     employment and training programs administered by the 
     Department of Labor and other human resource programs that 
     choose to participate.
       Key components of the voluntary one-stop career centers 
     systems are as follows: The chief local elected official in 
     each substate area designated by the Governor is to establish 
     a workforce investment board, which is to plan, set policy 
     and oversee the one-stop career center system in that area 
     (but not administer career centers). One-stop career centers 
     may be established through a consortium of the Employment 
     Service and other employment and training programs, or 
     through a competitive process, called the multiple 
     independent operator option. In either case, career centers 
     are issued a charter by the Board that identifies the number 
     and location of the centers.
       One-stop career centers must make available to the public 
     free of charge a set of basic services. Intensive services 
     are made available pursuant to an operating agreement between 
     participating programs. The centers also provide specialized 
     services to employers. Programs that are to participate in 
     the operation of the centers are the title I comprehensive 
     dislocated workers program, the Employment Service, the 
     Veterans' Employment Service, JTPA title II programs, 
     unemployment insurance programs, and the Senior Community 
     Service Employment Program. Other human resource programs, 
     such as JOBS, may also participate. Quality assurance is 
     built into the one-stop career center system through the 
     establishment of performance standards and customer feedback 
     mechanisms.
       Other components of the one-stop career center system are 
     the establishment of a State Human Resource Investment 
     Council authorized under JTPA, and a customer service 
     compact, involving all parties that administer the one-stop 
     system. States that wish to establish one-stop career center 
     systems may apply to the Secretary for competitive grants to 
     assist in the planning and development of the one-stop 
     system, and for competitive grants to assist in the 
     implementation of the one-stop system. States may also apply 
     for waivers of Federal statutory and regulatory requirements 
     to implement one-stop systems.
       Title IV establishes a National Labor Market Information 
     System that builds upon and strengthens existing capabilities 
     at the Federal, State and local levels.
       Title V amends title II of the Job Training Partnership Act 
     to add a new part D, ``Reinvention Labs''. This new part 
     allows wavier of Federal statutory or regulatory provisions 
     to encourage innovative program designs for serving 
     economically disadvantaged youth and adults, and to provide 
     service delivery areas with increased flexibility in 
     operating job training programs in exchange for higher 
     levels of accountability for results.
       Together, these provisions will begin to build a 
     reemployment system that is coherent, comprehensive, 
     customer-driven, accountable, and based on evidence of what 
     works in employment and training.
       Section 1 of the bill provides that this Act is entitled 
     the ``Reemployment Act of 1994.''
       Section 2 contains the Table of Contents.
       Section 3 contains the statement of Findings and Purpose of 
     the Act. The findings are that: in recent years the nature of 
     job uncertainty and job loss has changed; a substantial 
     number of Americans lose jobs because of structural changes 
     in the economy rather than cyclical downturns; job 
     uncertainty and dislocation carry substantial emotional and 
     financial costs to the nation; Americans seeking first jobs, 
     new jobs, or better jobs confront an economy in continuous 
     transition and must have access to new skills and better job 
     and career information; our current worker adjustment 
     policies were designed for an earlier economy and often do 
     not equip Americans to prosper in the current and emerging 
     atmosphere of constant change; the primary governmental 
     response to job loss--the unemployment insurance system--is 
     not designed to build re-employment security; the current 
     governmental response to dislocation is a patchwork of 
     categorical programs; job search assistance and retraining 
     are not available to all who need it and income support is 
     typically not available to facilitate training; there is a 
     lack of reliable labor market information; and administrative 
     and regulatory obstacles hamper State and local efforts to 
     establish comprehensive reemployment systems.
       The purpose of the Act is to: begin the transformation of 
     the unemployment system into a comprehensive, universal, 
     high-quality reemployment system; consolidate current 
     categorical dislocated worker programs into a comprehensive 
     program for all permanently laid-off workers, regardless of 
     the cause of the dislocation; facilitate long-term training 
     for permanently laid-off workers who want and need it; 
     provide customer-centered, high-quality employment and 
     training services that assist dislocated workers in making 
     informed career and training choices; build on innovative 
     State and local efforts, to begin to streamline employment 
     and training programs into a comprehensive, high-quality, 
     nationwide system of one-stop career center networks which 
     provide access to all Americans who want and need new, better 
     and first jobs; and create a National Labor Market 
     Information System that gives high-quality and timely data on 
     the local economy, labor market and other occupational 
     information to employers, employees, and training 
     providers.
       Section 4 authorizes appropriations for the Act. The 
     authorization for Title I (Comprehensive Program for Worker 
     Reemployment) is for $1.465 billion for fiscal year 1995 and 
     for such sums as may be necessary for succeeding fiscal 
     years. For Title III and Title IV (One-Stop Career Center 
     System and National Labor Market Information System, 
     respectively), the authorization is for $250 million for each 
     of fiscal years 1995 through 1999, and for such sums as may 
     be necessary for fiscal years 2000 through 2003.
       Section 5 provides definitions for basic terms used in the 
     Act. The following terms are defined: career center; 
     community-based organizations; economic development agencies; 
     Governor; labor market area; local elected official; 
     nontraditional employment; one-stop career center; private 
     industry council; Secretary; service delivery area; service 
     provider; State; State council; State Human Resource 
     Investment Council; substate area; substate grantee; and unit 
     of general local government.
       Title I of the bill establishes the Comprehensive Program 
     for Worker Reemployment.
       Section 101 provides for the allotment of funds. Section 
     101(a) requires that 75 percent of the funds appropriated 
     each fiscal year for this title be allotted to the States. 
     The remaining 25 percent is reserved for the Secretary to 
     carry out the national activities in Part B and for 
     allocations to the Commonwealth of the Northern Mariana 
     Islands and the territories.
       Section 101(b) requires that the allotment to the States be 
     based one-third on the relative number of unemployed 
     individuals, one-third on the relative number of unemployed 
     individuals, one-third on the relative number of unemployed 
     persons in excess of 4.5 percent, and one-third on the 
     relative number of individuals unemployed for more than 26 
     weeks. This is the same formula that is currently used under 
     title III of the Job Training Partnership Act, except that 
     the long-term unemployed factor under the new program is 
     based on more than 26 weeks of unemployment (to conform to 
     the eligibility section) rather than 15 weeks. Unlike JTPA, 
     this formula contains hold-harmless and stop-gain provisions 
     specifying that no State may receive less than 90 percent or 
     more than 130 percent of the previous year's allotment 
     percentage.
       Subsection (b) requires, as does JTPA, that as soon as 
     satisfactory data are available, allotments to the States are 
     to be based 25 percent on the relative number of dislocated 
     workers residing in each state and 25 percent based on each 
     of the three unemployment factors described above.
       Section 101(c) allows the Governor to reserve up to 30 
     percent of the State's allotment to carry out State 
     activities and responsibilities authorized under this title. 
     Of this amount, up to 5 percent may be used for State Grants 
     for Job Retention Projects under section 116, not more than 
     15 percent may be used for program administration, and not 
     more than 20 percent may be used for the combined costs of 
     program administration and technical assistance.
       Section 101(d) requires the Governor to allot the remainder 
     of the State allotment (a minimum of 70% of the State 
     allotment) to substate areas under a formula determined by 
     the Governor, which is to include the factors described 
     above, and additional objective and measurable factors that 
     the Governor determines are appropriate. The Governor's 
     formula may be amended only once for each program year. 
     Substate allocations are also subject to a cost limitation of 
     15 percent for administration.
       Section 101(e) reserves a small amount of the Secretary's 
     reserve fund (0.3 percent) for allocation to the Commonwealth 
     of the Northern Marina Islands and the territories.
       Section 101(f) reserves the remainder of the Secretary's 
     funds for national activities. For each of fiscal years 1995-
     1999, a minimum of 80 percent is earmarked for National 
     Discretionary Grants under section 131 and Disaster Relief 
     Employment Assistance under section 132; and not more than 20 
     percent may be expended for evaluation, research, and 
     demonstrations under section 133 and capacity building, staff 
     development and training, and technical assistance under 
     section 134. In program year 2000 and succeeding program 
     years, the distribution of funds among national activities 
     changes to a minimum of 85 percent for National Discretionary 
     Grants and Disaster Relief Employment Assistance, and not 
     more than 15 percent for evaluation, research, 
     demonstrations, capacity building, staff development and 
     training, and technical assistance.
       Section 102 requires the Secretary, beginning in program 
     year 1996, to recapture unexpended, formula-funded State 
     allotments upon a determination that the unexpended balance 
     of the State allotment at the end of the prior program year 
     exceeds 20 percent of the prior year's allotment. The 
     recapture also includes the unexpended balance of a State 
     allotment from any other previous program year. Recapture may 
     be accomplished by reducing the State allotment for the 
     subsequent program year by an equal amount. All recaptured 
     funds will be used for national discretionary grants.
       Section 103 provides the eligibility requirements for 
     services under the new worker reemployment program.
       Section 103(a) establishes that an eligible individual is a 
     person who: (1) has been permanently laid off from full-time, 
     part-time or seasonal (including farmworkers and fishermen) 
     employment within the preceding 12-month period or has 
     received notice that he/she will be permanently laid off, and 
     is either unlikely to obtain employment in the same or 
     similar occupation due to obsolete skills or a lack of job 
     opportunities, or the layoff was due to any permanent closure 
     or any substantial layoff at a plant, facility or enterprise; 
     (2) is employed at a facility where the employer has given 
     public notice that the facility will be closed within one 
     year, and the individual is unlikely to remain employed with 
     the same employer at another location or retire from the 
     labor force; (3) was self-employed (including farmers, 
     fishermen and ranchers) and is unemployed due to local 
     economic conditions or because of a natural disaster; (4) is 
     long-term unemployed; (5) is certified as eligible under the 
     transitional program for certification of trade-impacted 
     workers under part D of title II; or (6) was, pursuant to 
     regulations established by the Secretary, identified and 
     referred to the program by a State unemployment insurance 
     worker profiling system.
       Section 103(b) provides that displaced homemakers who were 
     displaced within the preceding 12 months, are unemployed, and 
     meet the other service-related requirements are eligible to 
     receive basic services, and may receive other title I 
     services to the extent the Governor determines such 
     additional services are appropriate.
       Section 103(c) defines terms for purposes of this section. 
     ``Permanently laid off'' is defined as a layoff under which a 
     recall is not expected within 26 weeks. ``Long-term 
     unemployed'' refers to a period of unemployment defined by 
     the Governor of not less than 27 weeks. ``Displaced 
     homemakers'' are defined the same as in section 4(29) of the 
     Job Training Partnership Act.
       Part A of title I establishes a State and substate delivery 
     system for the worker reemployment program.
       Section 111 specifies that the State is responsible for 
     developing and operating administrative and management 
     systems that ensure proper fiscal control and accountability, 
     consistent with both the requirements of Part E and the 
     accomplishment of the objectives of this title.
       Section 112 contains provisions for a State dislocated 
     worker unit and its required functions.
       Section 112(a) requires each Governor to designate or 
     establish a State dislocated worker unit to carry out the 
     rapid response, information collection and dissemination, 
     program support, and coordination functions.
       Section 112(b) describes each of the unit's functions. 
     First, rapid response activities include: (1) receiving 
     notices provided under the Worker Adjustment and Retraining 
     Notification Act (WARN) and collecting information on other 
     sites where permanent closures and layoffs affect 50 or more 
     workers; (2) establishing contact with representatives of the 
     employer, affected workers and affected unions, and affected 
     substate grantees, within 48 hours of notice or 
     identification of these closures and layoffs; (3) providing 
     assistance on site (i.e., at or near the closure or layoff 
     location) within 5 days (unless representatives of affected 
     workers agree to defer start-up), including information and 
     assistance in accessing programs and services, providing 
     appropriate emergency reemployment services, and providing 
     basic reemployment services in a group setting; (4) promoting 
     the formation of worker-management transition assistance 
     committees by: first, providing immediate assistance in 
     creation of the committee, including financial assistance for 
     start-up costs, providing a list of individuals from which 
     committee chairperson may be selected, and assisting in 
     selection of worker representatives in absence of union; and 
     second, providing technical assistance in developing a 
     strategy for assessing the employment and training needs of 
     each affected worker and obtaining necessary services and 
     assistance, such as advice and information on sources of 
     assistance, and serving as liaison with public and private 
     services and programs; and (5) preparing an action plan, 
     which may include assisting in the provision of reemployment 
     and training services, including group counseling, 
     preliminary assessments, and labor market information, and in 
     planning for the establishment of on-site transition centers 
     described in section 115(c).
       With regard to information collection and dissemination 
     activities, the State dislocated worker unit's specific role 
     is: to provide to employers and employees Statewide 
     information on the WARN Act, the Act's requirements, and the 
     eligibility requirements, services and benefits available 
     under this title; to collect information related to economic 
     dislocation--including potential closings and layoffs and 
     impacts of those to which the unit has responded, and on 
     Statewide programs and resources for services to affected 
     workers; to provide the economic dislocation information to 
     Governor to assist in providing an information base for 
     effective program management, review, and evaluation; and to 
     disseminate information Statewide on the State dislocated 
     worker unit's services and activities.
       The State dislocated worker unit's program support 
     functions are to provide technical assistance and advice to 
     substate grantees, work with employers and representatives of 
     employees in promoting labor-management cooperation to 
     achieve program objectives, and assist each local community 
     affected by a mass layoff or plant closing in developing and 
     implementing an adjustment plan, including assistance in 
     obtaining State economic development assistance.
       The unit's coordination role is to exchange information and 
     coordinate programs with: economic development agencies and 
     section 116 job retention projects to identify potential 
     layoffs, avert plant closings and mass layoffs and accelerate 
     dislocated workers' reemployment; State education, training 
     and social services programs; State labor federations; State-
     level general purpose business organizations; and all other 
     programs available to assist dislocated workers, including 
     the Employment Service, UI system, one-stop career centers 
     established under Title III of this Act, and student 
     financial aid programs.
       Section 112(c) requires the State dislocated worker unit to 
     coordinate its actions with the relevant substate grantees 
     and career centers.
       Section 112(d) requires that the worker-management 
     transition assistance committees ordinarily include (but are 
     not limited to): shared and equal participation by workers 
     and their representatives, and management, and participation 
     from community representatives as appropriate; shared 
     employer and State financial participation, using funds from 
     this title for operating expenses; joint selection by worker 
     and management representatives of the committee of a 
     chairperson to guide and oversee committee activities, 
     provide advice and leadership, and prepare a report on 
     committee activities (the chairperson or members of the 
     chairperson's immediate family cannot be employed or under 
     contract with labor or management at the site); and operation 
     under a formal agreement which may be terminated at will by 
     workers or management and for cause by the Governor.
       Section 112(e) authorizes the Governor to provide rapid 
     response activities to layoffs of less than 50 workers if the 
     Governor determines that the layoffs have a significant 
     adverse economic impact on a local community.
       Where there is an impending permanent closure or 
     substantial layoff and other resources are not expeditiously 
     available, section 112(f) authorizes the State to provide 
     funds for a preliminary assessment of the advisability of a 
     buyout and continued operation of the plant by a company or 
     group, including the workers.
       Section 112(g) prohibits the State from transferring the 
     responsibility for the State dislocated worker unit's rapid 
     response function to another entity, but permits agreements, 
     grants, contracts, or other arrangements with a career center 
     or other entity for rapid response assistance services.
       Section 112(h) requires Federal oversight of the State 
     administration and the quality of rapid response assistance 
     services, authorizes the Secretary to establish performance 
     standards relating to the State's provision of rapid response 
     services, and requires the Secretary to implement appropriate 
     corrective action if performance is determined to be 
     inadequate.
       Section 113 provides for the development and maintenance of 
     State and local labor market information (LMI) systems. 
     Section 113(a) requires the Governor to identify, or develop 
     and maintain a comprehensive LMI system in the State that (1) 
     promotes the collection, use, exchange and dissemination of 
     quality LMI that will enhance the employment opportunities 
     available to permanently laid off workers and other 
     individuals seeking employment; and (2) provides support for 
     needed improvements in LMI systems.
       Section 113(b) and (c) link the contents of and standards 
     for LMI in this section to those prescribed in title IV of 
     this Act.
       Section 113(d) requires the Governor to ensure, to the 
     extent feasible, that automated technology will be used in 
     data collection and dissemination; the State dislocated 
     worker unit, the substate grantee, and career centers have 
     timely access to quality LMI; administrative records are 
     designed to reduce paperwork; and available administrative 
     data and surveys are shared or consolidated to reduce 
     duplication of record keeping.
       Section 113(e) requires the Governor to designate an agent 
     within the State to be responsible for oversight and 
     management of a Statewide comprehensive labor market and 
     occupational information system. This agent is to be 
     responsible for providing training and technical assistance 
     to collect and disseminate information through programs under 
     this title, providing funding for the State share of the 
     cooperative agreements authorized in title IV to implement 
     the national LMI strategy, and funding research, evaluation 
     and demonstration projects to improve the Statewide LMI 
     system.
       Section 113(f) provides that the Governor is to coordinate 
     the activities carried out under title I with LMI carried out 
     in the State pursuant to other Federal laws, and with the 
     national LMI program in title IV. The Governor is authorized 
     to use LMI funds under other Federal laws to maintain the 
     State LMI system.
       Section 113(g) requires the Governor to identify and 
     utilize cost-effective methods for obtaining the labor market 
     information and data. This may include access to earnings 
     records, State employment security records, AFDC records, 
     education records, and similar records, with appropriate 
     safeguards to protect the confidentiality of the information 
     obtained. The Governor is also to publish and make available 
     labor market and occupational supply and demand 
     information and individualized career information to 
     public agencies, employers, and other users of this 
     information.
       Section 114 requires the Governor to coordinate worker 
     reemployment programs with the retraining income support 
     program authorized under title II and the State worker 
     profiling system. Coordination with the profiling system is 
     to include methods for ensuring the prompt referral, in 
     accordance with the Secretary's regulations, of UI claimants 
     profiled as dislocated workers to career centers, and the 
     sharing of information.
       Section 115 authorizes State supplementary grants for areas 
     of special need. In areas of a State experiencing substantial 
     increases in the number of eligible dislocated workers due to 
     plant or base closures and mass layoffs, State grants may be 
     awarded to provide to workers the full range of services 
     authorized under section 119. Entities eligible to receive 
     these grants include substate grantees in the affected areas, 
     employers and employer associations, transition assistance 
     committees and other employer-employee groups, 
     representatives of employees, industry consortia, and State 
     agencies. The Governor may, after formal consultation with 
     the area substate grantee, also use grant funds to establish 
     an on-site centers, including on-site transition centers 
     specified below, to provide services. Operations of any on-
     site center must be coordinated with area career centers. 
     Specific authority is provided for grants for temporary on-
     site transition centers at plant and base closure or mass 
     layoff sites that meet certain conditions. These include that 
     such centers would: be operated with the approval and 
     participation of employers and workers and their 
     representatives, including worker-management transition 
     assistance committees; include substantial funding from non-
     public sources; and provide the full range of reemployment 
     services directly or through contracts, such as contracts 
     with outplacement agencies. Center activities would be 
     coordinated with the local career centers and workers could 
     receive services at either the transition or career centers.
       Secton 116 authorizes State grants for job retention 
     projects. The Governor, after consultation with unions 
     representing affected workers, may award grants to projects 
     providing services to upgrade the skills of employed workers 
     who are at risk of being permanently laid off, and projects 
     assisting the retraining of employed workers to facilitate 
     business conversion or restructuring (e.g., to utilize new 
     manufacturing technology or transform to a high-performance 
     workplace) to avert substantial layoffs or plant closings. A 
     100 percent match of the grant is required, and is to be 
     provided by a combination of State funds (from funds other 
     than federal funds) and funds provided by the affected 
     employers or businesses. As indicated above, a maximum of 5 
     percent of the State reserve funds may be used for these 
     projects.
       Section 117 establishes the substate administrative 
     structure for the program.
       Section 117(a) provides for the designation of substate 
     areas for the delivery of program services. It requires the 
     Governor, after consultation with the State council and local 
     elected officials, to designate substate areas. It also 
     requires that each service delivery area under the Job 
     Training Partnership Act be included in a substate area and 
     prohibits the division of a service delivery area among 
     substate areas. The designation process must also take into 
     consideration the Statewide availability of services, the 
     capability to coordinate service deliver with other job 
     training, human services and economic development programs, 
     and the geographic boundaries of labor market areas in the 
     State. Subject to the above requirements, a service delivery 
     area with a population of 200,000 or more that requests 
     designation, any two or more contiguous service delivery 
     areas with an aggregate population of 200,000 or more that 
     request designation, and any concentrated employment program 
     grantee for a rural area authorized under section 101 of the 
     Job Training Partnership Act must be designated as a substate 
     area, except that a request from the contiguous service 
     delivery areas may be denied if the Governor determines the 
     designation would be inconsistent with the effective delivery 
     of services to workers in State labor market areas or would 
     not otherwise be appropriate to carry out this program. 
     Substate areas established under the EDWAA program, which is 
     one the programs this title replaces, could be designated if 
     they otherwise meet the requirements of this section. The 
     section prohibits the designation of any area with a 
     population under 200,000 as a substate area unless it is a 
     JTPA rural concentrated employment program grantee. The 
     Governor is authorized to award incentive grants to encourage 
     the formation of substate areas based on labor market areas. 
     Substate area designations may not be revised more than once 
     every 4 years.
       Section 117(b) provides for the designation of a substate 
     grantee for each substate area for a 4-year period. The 
     designation is based on agreement among the Governor, area 
     local elected official(s), and area private industry 
     council(s). Absent agreement, the Governor selects the 
     substate grantee. Entities eligible for designation as 
     substate grantee include: area PICs; SDA grant recipients or 
     administrative entities; private nonprofit organizations; 
     units of local government, or agencies thereof, in the 
     substate area; local offices of State agencies; other public 
     agencies, such as community colleges and area vocational 
     schools; and consortia of the above.
       Section 117(c) establishes the functions of substate 
     grantees. Substate grantees are to receive and administer 
     funds allocated to the substate area, including 
     administration of payments to service providers of education 
     and training services in accordance with section 119(d)(2); 
     administer the process for selection of career center 
     operators established in section 118; oversee and monitor the 
     area program and coordinate the operation of career centers 
     in the substate area; and prepare and publish biennially a 
     plan describing proposed program activities and objectives in 
     the substate area.
       When a substate grantee desires to be selected to operate a 
     career center, the process for selecting career center 
     operators in that area must be administered by the PIC(s). If 
     the substate grantee is the PIC, the Governor administers the 
     selection process. Where substate grantees operate career 
     centers, the career center oversight function is to be 
     performed by the Governor.
       Section 118 provides for the establishment of career 
     centers. The substate grantee is required to establish one or 
     more career centers in the substate area. The career center 
     is to be the point of access for eligible individuals to the 
     services provided under section 119.
       Section 118(c) describes the career center selection 
     process. Any entity or consortium of entities located in the 
     substate area may apply for selection as a career center 
     operator. The entities may include Employment Service 
     offices, SDA grant recipients or administrative entities 
     under JTPA, substate grantees under this title, community 
     colleges and area vocational schools, community-based and 
     other private nonprofit organizations, and other interested 
     private for-profit and public organizations and entities.
       After consultation with the Governor and local elected 
     officials, the substate grantee is required to publish a 
     public notice informing individuals and organizations in the 
     substate area of: the estimated number of career centers to 
     be established in the substate area, information on 
     application procedures, selection criteria for career center 
     operators, and other information the substate grantee 
     considers relevant to the selection of operators and 
     administration of the centers.
       The substate grantee, consistent with guidelines issued by 
     the Secretary, is required to use objective criteria and 
     performance measures in assessing the applications. 
     Applicants must demonstrate the ability to operate a career 
     center that would: provide the services described in section 
     119; use automated systems to facilitate information exchange 
     among career centers; meet the performance standards 
     prescribed pursuant to section 152; meet the fiscal 
     requirements of Part E of this title; objectively and 
     equitably administer the process of referring participants 
     to education and training services; and meet any other 
     requirements the substate grantee determines appropriate. 
     While overall costs may be taken into consideration in the 
     selection process, the level of wages and benefits paid to 
     nonmanagerial employees by an applicant is not to be a 
     factor in the selection process.
       Career center operators will be selected by the substate 
     grantee once every 4 years.
       Substate grantees are to review at least annually the 
     education and training referral practices of any career 
     center operator that concurrently provides education and 
     training services to program participants. Should the 
     substate grantee find a pattern of inappropriate referrals to 
     education and training services, the substate grantee may 
     require the center operator to cease provision of these 
     services to program participants as a condition for 
     continuing as center operator, or may terminate the agreement 
     to operate a center.
       Section 119 describes the services that are to be provided 
     to eligible individuals. The services are grouped into 6 
     categories: basic reemployment services, intensive 
     reemployment services, education and training services, 
     retraining income support, supportive services, and 
     supplemental wage allowances for older workers.
       Section 119(b) requires each career center to make 
     available to eligible individuals the following basic 
     reemployment services: outreach to inform individuals of and 
     encourage use of employment and training and placement 
     opportunities for individuals with limited English 
     proficiency and individuals with disabilities; intake and 
     eligibility determination for assistance for this program; 
     orientation to information and services available through the 
     center; assistance in filing an initial UI claim; a general 
     assessment of the individual's skill levels (including 
     appropriate testing) and service needs, which may include 
     basic and occupational skills, prior work experience, 
     employability, interests, aptitudes, and supportive service 
     needs; local, regional and national labor market information, 
     including job vacancy listings and local occupations in 
     demand and related earnings and skill requirements; job 
     search assistance (including resume and interview 
     preparation, and workshops); job referral and placement 
     assistance such as job search training; information on 
     education and job training programs--including eligibility 
     requirements, services provided, the availability and quality 
     of the programs, and student financial assistance available--
     and referrals as appropriate; assistance in evaluating 
     individual's eligibility for any other DOL-administered 
     employment and training programs; information collected under 
     performance standards and quality assurance requirements; 
     information on programs and providers of dependent care 
     and other supportive services available locally; group 
     counseling, including peer counseling, available jointly 
     with immediate family members, on stress management and 
     financial management; and solicitation and acceptance of 
     job orders of area employers and referral of appropriate 
     applicants.
       Section 119(c) describes the intensive reemployment 
     services each career center is to make available to eligible 
     individuals who have received but are not able to find jobs 
     through the basic reemployment services. The intensive 
     services are: comprehensive and specialized assessment of an 
     individual's skill levels and service needs, such as 
     diagnostic testing, and in-depth interviewing and evaluation 
     to identify employment barriers and appropriate employment 
     goals; the development of an individual reemployment plan 
     which identifies the employment goal, including appropriate 
     nontraditional employment, achievement objectives and the 
     appropriate combination of services to achieve the goal; 
     individual counseling and career planning, including peer 
     counseling and counseling and planning for nontraditional 
     employment opportunities; assistance in selection of 
     education and training providers and in obtaining income 
     support, including student financial assistance; case 
     management for those receiving education, training and 
     supportive services; job development; out-of-area job search 
     allowances; relocation allowances; and follow-up counseling 
     for those placed in training or employment.
       The section further requires that the reemployment plan be 
     both developed and signed jointly by the individual and a 
     career counselor, and that there be a review of the 
     individual's progress in meeting the objectives in the plan. 
     Should the parties disagree regarding the plan's content, 
     appeal of the career counselor's recommendation is available 
     to the individual under the grievance procedure in section 
     164. The employment goal in the plan must relate to 
     employment in an occupation in demand either locally or in 
     another area to which the individual is willing to relocate.
       The out-of-area job search allowance may not exceed 90 
     percent of the costs of necessary job search expenses, up to 
     a maximum payment specified by the Secretary in regulations. 
     The allowance is payable only if the search is to obtain a 
     job within the United States and the career center determines 
     the individual cannot reasonably be expected to find suitable 
     employment in the individual's local commuting area.
       The relocation allowance is payable only for relocation 
     expenses incurred within the United States and only if the 
     career center determines the individual cannot reasonably be 
     expected to find suitable employment in the individual's 
     local commuting area, and the individual has obtained 
     suitable employment with reasonable prospects for long-
     term duration in the relocation area, or has received a 
     bona fide employment offer and is totally separated from 
     employment at commencement of the relocation. The amount 
     of the relocation allowance may not exceed the total of: 
     90 percent of reasonable and necessary expenses, specified 
     by the Secretary in regulations, incurred in moving the 
     individual, any family and household effects; and a lump 
     sum equivalent to 3 times the individual's preceding 
     average weekly wage, up to a maximum payment specified by 
     the Secretary in regulations.
       SEction 119(d) contains provisions for education and 
     training services. Each career center is required to make 
     available a list of eligible providers of basic skills 
     training (including remedial education, literacy training, 
     and English-as-a-second language instruction), classroom and 
     on-the-job occupational skills training; and other skills-
     based education and training considered appropriate, which 
     may include entrepreneurial training and skills training for 
     high performance work organizations, such as problem solving 
     skills and those related to the use of new technologies. 
     Eligible providers of education and training services are 
     those meeting the requirements of section 154.
       When an individual has a jointly executed individual 
     reemployment plan that specifies that education and training 
     services are necessary to the person's reemployment, the 
     individual, in consultation with a career counselor, is to 
     select a service provider from the list of eligible 
     providers. The career center then refers the person to the 
     provider and arranges for payment to be made to the provider 
     by the substate grantee.
       Education and training services may also be provided under 
     a contract between the substate grantee and an eligible 
     service provider if the services are customized to meet the 
     needs of a specific eligible group in the substate area or 
     are for on-the-job training.
       Education and training costs payable under this title are 
     capped at $4,750 per individual over any 12-month period, and 
     may not exceed 104 weeks in a 5-year period. Funds provided 
     under the program for education and training may be 
     supplemented with funds from other sources such as Pell 
     grants, student loans or work assistance under the Higher 
     Education Act, and other student financial aid. It is 
     intended that an eligible individual receive funds for 
     training under this title before applying for Federal student 
     financial assistance, and the amounts provided by this 
     program will be calculated in determining an individual's 
     eligibility for such assistance.
       For purposes of the income support program under title II, 
     the career centers are considered an agency certified by 
     the Secretary to develop a reemployment plan. Eligible 
     individuals participating in education and training 
     services under this title are also deemed to be in 
     approved training for purposes of the unemployment 
     compensation program.
       Section 119(e) establishes a retaining income support 
     program for certain individuals eligible for the 
     comprehensive reemployment program. For program years 1995 
     through 1999, workers who qualify for income support under 
     title II (those with three or more years of tenure with the 
     layoff employer and those certified as trade-impacted) would 
     be referred to that program. Workers with at least one but 
     less than three years of tenure would receive income support 
     under this title. Beginning in program year 2000, all workers 
     with one or more years of tenure will qualify for retraining 
     income support under title II and will be referred to that 
     program for such support. With respect to the transitional 
     income support program under this title, permanently laid-off 
     individuals will be provided up to 26 weeks of income support 
     at the UI benefit level under this title to enable them to 
     participate in education and training if the individual: had 
     at least one and less than three years of tenure with the 
     layoff employer; was entitled or would have been entitled to 
     unemployment compensation under State or Federal law, has 
     exhausted all rights to UI to which the person was or would 
     have been entitled, and does not have an unexpired waiting 
     period; was enrolled in education or training by the 16th 
     week of the permanent layoff or 14th week after being 
     informed the layoff will exceed 6 months; and is 
     participating and making satisfactory progress in education 
     and training under this title (including any week which 
     includes a break from training not exceeding 28 days which is 
     provided under the program). The 16-week and 14-week 
     enrollment requirements may be extended up to 30 days if the 
     Secretary determines there are extenuating circumstances such 
     as cancellation of a course or a later first available 
     enrollment date that justify the extension.
       This subsection includes several special rules that provide 
     that continuous employment would include periodic 
     interruptions resulting from sickness, maternity leave, 
     military service, representation of a labor organization, and 
     temporary layoffs up to a specified number of weeks. In 
     addition, employment with a single employer is to include all 
     employment covered by multiemployer plans, obtained through a 
     single hiring hall, employment with a successor and 
     predecessor employer in cases of a merger or acquisition, and 
     employment under a leasing arrangement.
       The retraining income support payment will be offset by the 
     extended benefits or other Federal supplemental compensation 
     program to which the individual is or would have been 
     entitled, any weekly training income support provided under 
     another Federal program, or earned income that exceeds 50 
     percent of the individual's weekly UI benefit. This last 
     provision establishes a national standard for disregarding 
     income that would allow for the part-time employment of 
     individuals while they are participating in the program.
       Under a cost-reimbursable agreement, the income support 
     payments will be administered by the State agency which 
     administers the unemployment compensation program. The career 
     center will assist individuals in education or training in 
     applying for retraining income support under this title or 
     under title II, as appropriate. Individuals not eligible for 
     income support under either program, and needing income 
     support to participate in training, will also be assisted in 
     applying for other appropriate resources, including student 
     financial aid.
       The career center is to inform individuals determined 
     eligible of the availability and requirements relating to 
     income support, particularly the requirement that an 
     individual be enrolled in training by the 16th week of 
     unemployment in order to qualify. The substate grantee is 
     also to make arrangements with the State UI agency to make 
     this information, along with other information about the 
     program, available to claimants.
       Section 119(f) requires that the supportive services be 
     made available when the individual reemployment plan 
     identifies the need for such services to enable the 
     individuals's participation in intensive reemployment 
     services or education and training services. The services may 
     include, but are not limited to, transportation, dependent 
     care, meals, health care, temporary shelter, needs-related 
     payments, drug and alcohol abuse counseling and referral, 
     family counseling, and other similar services. At the option 
     of the career center, supportive services may also be made 
     available to individuals participating in basic reemployment 
     services. These services may be paid directly by the center, 
     to a service provider, or through arrangements with 
     appropriate agencies.
       Section 119(g) authorizes a supplemental wage allowance for 
     older workers. An eligible individual who is age 55 or over 
     may receive a supplemental wage allowance if the individual: 
     accepts full-time employment at a weekly wage that is less 
     than the prior wage, was unable to obtain higher-wage 
     employment through the basic reemployment services available 
     under this program, and agrees jointly with a career center 
     counselor that the allowance is the most effective adjustment 
     option available. The allowance is payable for up to 52 weeks 
     and equals three-quarters of the difference between the 
     weekly wage received in a reemployment job and 80 percent of 
     the individual's preceding average weekly wage. It may not 
     exceed 50 percent of the regular weekly UI benefit level. The 
     allowance is to be administered on a cost-reimbursable basis 
     through a substate grantee agreement with the State 
     unemployment compensation agency. An individual who 
     has received a certificate of continuing eligibility may 
     not subsequently receive a supplemental wage allowance.
       Section 120 authorizes certificates of continuing 
     eligibility. A career center may issue a certificate for 
     continuing eligibility to individuals who are accepting new 
     employment at a significantly lower wage than their previous 
     wage or in an occupation significantly different from their 
     previous occupation. The certificate will specify a period 
     not to exceed 104 weeks within which the worker will remain 
     eligible for reemployment services and for retraining income 
     support payments under this program or under title II. The 
     individual's continuing eligibility for such support will be 
     based on his or her UI status at the time the certificate is 
     received rather than at the time the individual is held 
     harmless. The requirements relating to enrollment in training 
     to be eligible for income support remain applicable except 
     that the 16- and 14-week periods start with the individual's 
     separation from this new, subsequent employment.
       Part B of title I defines Federal responsibilities. Section 
     131 establishes a National Discretionary Grant Program. 
     Section 131(a) specifies that the national grants are to 
     address large scale economic dislocations resulting from 
     plant closures, base closures, or mass layoffs.
       Section 131(b) states that the services provided under the 
     national grant program are to be the same types of services 
     as those provided by career centers in substate areas. Grants 
     may be awarded to such projects as those assisting industry-
     wide dislocations, multistate dislocations, and dislocations 
     resulting from defense cutbacks, international trade, 
     environmental laws and regulations, or special circumstances 
     in the State. The Secretary may also award grants for 
     projects that provide comprehensive planning services to 
     assist communities in responding to an economic dislocation. 
     In addition, grants may be awarded for on-site transition 
     centers described in section 115(c)(2).
       Section 131(c) contains the administrative provisions 
     governing the national discretionary grant program. To 
     receive a grant, an eligible entity must submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary 
     determines is appropriate. Entities that are eligible to 
     receive grants are States, substate grantees under this 
     program, employers and employer associations, worker-
     management transition assistance committees, representatives 
     of employees, community development corporations and 
     community-based organizations, and industry consortia.
       Section 132 authorizes Disaster Relief Employment 
     Assistance. Funds appropriated to carry out this section are 
     to be made available by the Secretary to the Governor of any 
     State within which is located an area which has suffered an 
     emergency or a major disaster. The provisions of section 132 
     currently are contained in part J of title IV of the Job 
     Training Partnership Act. The eligibility provisions now 
     contained in part J have been revised to specify that 
     notwithstanding the general eligibility requirements for this 
     program, an individual is eligible for disaster employment if 
     the individual is unemployed (whether permanently or 
     temporarily) as a consequence of the disaster. In addition, 
     there are other technical changes in the provisions now in 
     part J.
       Section 133 authorizes the Secretary to conduct 
     evaluations, research and demonstrations. Section 133(a) 
     specifies that the Secretary shall provide for the continuing 
     evaluation of title I programs, including their cost-
     effectiveness in achieving the purposes of the title. Such 
     evaluations must utilize recognized statistical methods and 
     techniques of the behavioral and social sciences, including 
     methodologies that control for self selection, where 
     indicated. The evaluations may include cost benefit analyses, 
     impact analyses, analyses of the extent to which title I 
     programs meet the needs of various demographic groups, and 
     the effectiveness of delivery systems used by the various 
     programs. Also required are evaluations of the effectiveness 
     of title I programs with respect to the statutory goals, the 
     performance standards established by the Secretary, and the 
     extent to which the programs enhance participant employment 
     and earnings, reduce income support costs, improve 
     participants' employment competencies compared to a non-
     participant control group, and, to the extent feasible, 
     increase the level of total employment beyond that in the 
     absence of the programs.
       Section 133(b) requires the Secretary to establish a 
     research program that relates to addressing economic 
     dislocation, facilitating the transition of permanently laid 
     off workers to reemployment, and upgrading the skills of 
     employed workers. Section 133(b)(2) requires the Secretary to 
     develop and maintain statistical data relating to permanent 
     layoffs and plant closings, and to publish a report based on 
     such data as soon as practicable after the end of each 
     calendar year. This provision is currently contained in 
     section 461(e) of the Job Training Partnership Act.
       Section 133(c) requires the Secretary to conduct a program 
     of demonstration projects to develop and improve the methods 
     for addressing economic dislocation and promoting worker 
     adjustment. Projects that may be funded include those that 
     upgrade the skills of employed workers who are at risk of 
     being permanently laid off, and those that assist in the 
     conversion or restructuring of businesses in order to avert 
     plant closings or substantial layoffs. Demonstration 
     projects are limited to three years' duration and each 
     project must contain an evaluation component.
       Section 134 requires the Secretary to provide staff 
     training and technical assistance to States, substate 
     grantees, career centers, communities, business and labor 
     organizations, service providers, industry consortia, and 
     other entities. Such training and technical assistance may be 
     provided through grants, contracts or other arrangements, and 
     is intended to enhance the capacity of these parties to 
     deliver effective adjustment assistance services and to avert 
     plant closings or substantial layoffs. The assistance may 
     include development of management information systems, 
     customized training programs, and dissemination of computer-
     accessed learning systems. Training and technical assistance 
     provided under this section must be coordinated with the 
     activities of the Capacity Building and Information and 
     Dissemination Network established under section 453 of the 
     Job Training Partnership Act.
       Section 135 provides Federal by-pass authority for 
     operation of the program. If a State chooses not to 
     participate in the program, the Secretary is to use the funds 
     that would be allotted to the State to provide services to 
     eligible workers in that State.
       Part C of title I establishes performance standards and 
     quality assurance systems.
       Section 151 requires the Secretary to establish a process 
     within each State to promote the development of a customer 
     service compact among the parties administering title I 
     programs: the Secretary, the Governor, each substate grantee, 
     and each career center. The compact is an informal agreement 
     rather than a formal legal document. It is to identify the 
     shared goals and values that will govern the administration 
     of the program, the respective roles and responsibilities of 
     each party, methods for ensuring that the satisfaction of 
     participants with services received is a primary 
     consideration in the administration of the program, and other 
     matters on which there is agreement. This compact reflects a 
     new customer-driven view of the relationship between the 
     local, State and Federal partners in providing employment and 
     training services. It is a pledge to deliver quality customer 
     services, and is part of the process to continuously develop 
     customer-based performance measures and improve performance. 
     Each year, the partners will meet to discuss goals and 
     strategies for serving their customers in the coming year.
       Section 152 establishes performance standards for title I. 
     Section 152(a) requires the Secretary, after consulting with 
     the Secretary of Education, Governors, substate grantees, and 
     career centers, to prescribe separate performance standards 
     for substate grantees and career centers. The standards 
     are to be based on factors the Secretary determines are 
     appropriate, and may include (1) placement; (2) the 
     acquisition of skills based on the skill standards and 
     certification system endorsed by the National Skill 
     Standards Board established under the Goals 2000: Educate 
     America Act; (3) participant and employer satisfaction 
     with services provided and employment outcomes; (4) 
     employer satisfaction with the job performance of the 
     individuals placed; and (5) the quality of services to 
     hard-to-serve populations, such as low-income and older 
     workers.
       Section 152(b) requires each Governor to prescribe 
     adjustments to the Secretary's standards, within parameters 
     established by the Secretary and after consultation with 
     substate grantees and career centers. Such adjustments must 
     be based on (1) economic, geographic and demographic factors, 
     and (2) characteristics of the population to be served.
       Section 152(c) specifies that the Governor is to provide 
     technical assistance to substate grantees and career centers 
     that fail to meet performance standards under uniform 
     criteria prescribed by the Secretary. Governors must report 
     annually to the Secretary on the final performance standards 
     and performance for each substate grantee and career center, 
     as well as the technical assistance the Governor plans and 
     has provided. If a substate grantee fails to meet performance 
     standards for two consecutive program years, the Governor 
     must terminate the grantee agreement and designate another 
     entity as the substate grantee. Similarly, the substate 
     grantee must terminate the career center agreement and select 
     another entity as a career center operator if the center has 
     failed to meet standards for two consecutive years. 
     Subsection (c) provides substate grantees and career centers 
     with an appeal process to the Secretary regarding such 
     terminations.
       Section 152(d) specifies that Governors are to award 
     incentive grants, out of the Governor's reserved funds, to 
     substate grantees and career centers exceeding performance 
     standards. Incentive grants are to be used by substate 
     grantees and career centers to enhance or expand services.
       Section 153 requires that each substate grantee establish 
     methods for obtaining feedback from customers--individuals 
     and employers--on the effectiveness and quality of the 
     services they have received and of the service providers. 
     Surveys, interviews and focus groups may be used to obtain 
     this feedback. The information obtained must be analyzed by 
     the substate grantee on a regular basis, and a summary of the 
     information and the analysis is to be provided to the career 
     center for use in improving its administration of title I 
     programs and aiding customer choice in selecting eligible 
     service providers.
       Section 154 establishes eligibility requirements for 
     providers of education and training services. The purpose of 
     such requirements is to provide individual customers with 
     information on the performance of service providers that will 
     assist them in choosing types of services and where to obtain 
     those services, and to preclude ineffective service providers 
     from receiving Federal funds.
       Section 154(a) states that in order to be eligible to 
     receive title I funds, an education and training service 
     provider must be eligible to participate in title IV of the 
     Higher Education Act or be determined to be eligible under 
     the alternative eligibility procedures in subsection (b). 
     Such provider must also provide the performance-based 
     information required in subsection (c).
       Section 154(b) requires the Governor to establish an 
     alternative eligibility procedure for education and training 
     providers that desire to be funded under this Act, but are 
     not eligible under the Higher Education Act. This procedure 
     must establish minimum levels of performance and be based on 
     factors and guidelines developed by the Secretary, after 
     consultation with the Secretary of Education. The factors 
     must be comparable to those that are used to determine an 
     institution of higher education's eligibility to participate 
     in title IV programs. If the participation of an institution 
     of higher education in programs under title IV of the Higher 
     Education Act is terminated, the institution may not receive 
     funds under the Reemployment Act for a period of two years.
       Section 154(c) describes the types of performance-based 
     information that must be submitted by all service providers 
     (except for on-the-job training) in order to qualify under 
     this section. Such information is to be identified by the 
     Secretary in consultation with the Secretary of Education and 
     may include program completion rates, licensure rates, 
     placement and retention in employment rates, the percentage 
     of graduates who meet skill standards and certification 
     requirements, and the percentage of students who obtain 
     employment in an occupation related to the provider's 
     program. Governors may prescribe additional performance-based 
     information to be submitted by providers. It is intended that 
     the Secretary will closely coordinate with the Secretary of 
     Education to promote consistency in the information requested 
     of service providers under this program and under the Higher 
     Education Act.
       Section 154(d) specifies how the system of eligibility 
     requirements is to be administered. Each State must designate 
     a State agency with responsibility for compiling a list of 
     eligible providers and performance-based information and 
     disseminating this list to substate entities and career 
     centers in the State. Service providers desiring to receive 
     title I funds must submit the performance-based information 
     described above to the designated State agency at such 
     time and in such form as the agency requires. The 
     designated State agency may provide technical assistance 
     to providers in developing the required information, 
     including facilitating the use of State administrative 
     records.
       If the State agency determines that information concerning 
     a provider is inaccurate, the provider is disqualified from 
     receiving title I funds for two years, unless the provider 
     can demonstrate that the information was provided in good 
     faith. The Governor must establish a procedure for service 
     providers to appeal disqualification. The procedure must 
     provide an opportunity for a hearing and prescribe 
     appropriate time limits to ensure prompt resolution of the 
     appeal.
       The Secretary of Labor must also consult with the Secretary 
     of Education regarding the eligibility of institutions of 
     higher education and other providers of education and 
     training under the Reemployment Act and the Higher Education 
     Act.
       Section 154(e) specifies that providers of on-the-job 
     training are not subject to the eligibility requirements 
     described in this section, but the substate grantee is 
     required to collect performance-based information required by 
     the Secretary from on-the-job training providers and 
     disseminate this information to career centers.
       Part D of title I contains a variety of requirements 
     generally applicable to all program under title I. These 
     provisions are adapted almost exclusively from the provisions 
     contained in part C of the Job Training Partnership Act and 
     also incorporate a labor consultation provision from section 
     311 of JTPA.
       Section 161 contains general program requirements. First, 
     it prohibits the use of funds under this title to induce, 
     encourage, or assist relocations if the move results in the 
     loss of employment at the original site. In addition, funds 
     cannot be used for 120 days for on-the-job training, 
     customized or skill training, or company specific assessment 
     of job applicants or employees for an establishment that has 
     relocated, if the relocation led to loss of employment at the 
     original site. The Secretary must investigate allegations 
     that funds under this title have been improperly used. Where 
     the Secretary determines a violation by a State, substate 
     area, or substate grantee, repayments of misspent funds to 
     the Treasury is required. The Secretary is also required to 
     collect an additional amount equal to the repayment unless 
     the violators demonstrate they neither knew nor could have 
     known the funds were improperly used, and these funds would 
     be provided to the title I program.
       Second, the section requires that efforts be made to 
     develop programs under this title to encourage occupational 
     development, upward mobility, the development of new careers, 
     and to overcome sex-stereotyping in non-traditional 
     employment.
       Third, the section authorizes joint agreements or contracts 
     between substate grantees to pay or share education, 
     training, placement or supportive services costs under this 
     title.
       Fourth, the section established limitations on OJT. 
     Payments to employers for OJT may not exceed the average of 
     50 percent of wages paid to program participants. In 
     addition, OJT is limited to the period generally necessary to 
     acquire skills related to the occupation, but is not to 
     exceed 6 months. OJT contracts must specify the type and 
     duration of training, and OJT contracts with brokers must 
     include additional information on services to the client by 
     the broker and the employers. Contracts are prohibited with 
     employers who have exhibited a pattern of not providing OJT 
     participants with regular employment after the training 
     period with wages and benefits comparable to other employees.
       Fifth, charging an individual a fee for the placement or 
     referral of that individual in or to a training program under 
     this title is prohibited.
       The section also contains provisions that prohibit subsidy 
     of private for-profit employment; cover the retention of 
     program income by public and nonprofit entities; specify 
     notification and consultation requirements; permit 
     cooperative agreements between States; prohibit funding for 
     public service employment except for disaster relief 
     employment assistance; prohibit funding for employment 
     generating and related activities except for disaster relief 
     employment assistance; and cover Federal real property 
     requirements.
       Section 162 provides standards for the wages to be paid to 
     participants in training.
       Section 163 provides labor standards relating to general 
     working conditions; health and safety standards; workers' 
     compensation; equitable treatment; prohibition of 
     displacement; relationship with organized labor, including 
     the requirement that programs under title providing services 
     to a substantial number of labor organization members will be 
     established only after full consultation with the 
     organization.
       Section 164 provides for grievance procedures and the 
     remedies available to grievants.
       Part E of title I contains fiscal administrative provisions 
     governing title I. These provisions are adapted from the 
     provisions contained in part D of title I of the Job Training 
     Partnership Act. This part assumes that the Office of 
     Management and Budget Circulars A-102 and A-87, governing 
     administrative requirements and cost principles applicable to 
     Federal grant programs, will not apply to title I. Rather, 
     the provisions of part E, many of which are similar to the 
     Circulars, will apply. Currently, these Circulars do not 
     apply to title II or title III of the Job Training 
     Partnership Act.
       Section 171(a) directs that appropriations under title I 
     for any fiscal year shall be available for obligation only on 
     the basis of a program year, which begins on July 1 in the 
     fiscal year for which the appropriation is made.
       Section 171(b) authorizes recipients to expend funds 
     obligated in a program year either during that program year 
     or the two succeeding program years.
       Section 172 contains procedural requirements regarding the 
     publication of formula allocations and allotments, and any 
     discretionary allocation formula.
       Section 173 authorizes the Secretary to monitor all 
     recipients of financial assistance under title I, and to 
     conduct investigations to determine compliance with the title 
     and implementing regulations.
       Section 174(a) contains requirements for States to follow 
     in establishing fiscal controls and fund accounting 
     procedures necessary to assure the proper disbursal of, and 
     accounting for Federal funds paid to recipients under title 
     I.
       Section 174(b) contains the requirements and procedures to 
     follow in the event the Governor determines that there is a 
     substantial violation of the Act or its regulations.
       Section 174(c) specifies requirements for repayment of 
     funds by recipients of amounts found not to have been 
     expended in accordance with title I.
       Section 174(d) establishes liability of recipients for 
     repayment of funds, and specifies conditions for the 
     Secretary's imposition of sanctions against a recipient.
       Section 174(e) gives the Secretary emergency authority to 
     terminate or suspend financial assistance, when it is deemed 
     necessary to protect the integrity of funds or ensure the 
     proper operation of the program.
       Section 174(f) requires the Secretary to take action or 
     order corrective measures with respect to participants who 
     have been discharged or discriminated against, or who have 
     filed a complaint or been denied a benefit.
       Section 174(g) specifies that the remedies under section 
     174 are not to be exclusive remedies.
       Section 175 requires each recipient of financial assistance 
     to maintain records on funds, participants and programs, and 
     keep such records for the inspection of the Secretary, the 
     Inspector General, and the Comptroller General. The section 
     also specifies the responsibilities of fund recipients for 
     maintaining management information systems, financial 
     records, and monitoring the performance of service providers. 
     Each Governor must establish record retention requirements.
       Section 176 establishes procedures for administrative 
     adjudication to be used whenever any applicant for financial 
     assistance is dissatisfied because the Secretary has made a 
     determination not to award such assistance.
       Section 177(a) makes programs under title I subject to the 
     nondiscrimination provisions of the Age Discrimination Act of 
     1975, Section 504 of the Rehabilitation Act, title IX of the 
     Education Amendments of 1972, and title VI of the Civil 
     Rights Act of 1964. Section 177(a) also prohibits 
     discrimination under title I on the basis of race, color, 
     religion, sex, national origin, age, disability, or political 
     affiliation or belief; prohibits employment of participants 
     on the construction, operation or maintenance of religious 
     facilities; prohibits discrimination against participants in 
     title I because of their status as participants; and allows 
     participation in title I programs of certain aliens and 
     refugees.
       Section 177(b) establishes procedures to be used by the 
     Secretary whenever the Secretary determines that a State or 
     other recipient has failed to comply with a provision of law 
     or regulation governing nondiscrimination.
       Section 177(c) authorizes the Attorney General to bring 
     civil action in any appropriate U.S. district court for 
     appropriate relief in discrimination cases.
       Section 178 provides for review in the courts of appeals 
     with respect to the Secretary's final determinations to award 
     or not award financial assistance, terminate assistance, 
     withhold funds, or otherwise sanction a recipient, or if any 
     interested party is dissatisfied with or aggrieved by any 
     final action of the Secretary.
       Section 179 authorizes the Secretary to prescribe rules and 
     regulations, accept gifts to carry out title I programs, 
     allocate or spend funds, and utilizes services and facilities 
     of other Federal, State, or substate agencies. Section 179 
     also prohibits financial assistance to be used for political 
     activities.
       Section 180 specifies that no authority to enter into 
     contracts or financial assistance agreements under title I 
     shall be effective except to the extent or in such amount as 
     are provided in advance in appropriation Acts.
       Section 181 amends section 665 of title 18, United States 
     Code, to provide criminal penalties for anyone who knowingly 
     enrolls an ineligible participant, embezzles or steals any 
     money, assets or property of a program assisted under title 
     I, or who willfully obstructs or impedes a Federal 
     investigation conducted under title I.
       Section 182 provides that, upon enactment of this Act, 
     references in other statutes to the Job Training Partnership 
     Act shall be deemed also to refer to the Reemployment Act of 
     1994.
       Part F contains miscellaneous provisions relating to title 
     I.
       Section 191 establishes July 1, 1995 as the effective date 
     of title I.
       Section 192 terminates the EDWAA program (sections 301-324 
     of the Job Training Partnership Act (JTPA), the Defense 
     Conversion Adjustment Program, the Defense Diversification 
     Program, and the Clean Air Employment transition Assistance 
     Program on July 1, 1995. Funds authorized under these 
     programs will be permitted to be expended until they are 
     exhausted.
       The Disaster Relief Employment Assistance Program, Title 
     IV-J of JTPA and the mass layoff study provisions in section 
     462(e) of JTPA (which are transferred to this Act) are also 
     terminated on July 1, 1995.
       Section 193 provides the Secretary with general authority 
     to establish rules and procedures to provide for an orderly 
     transition from the terminated programs to the comprehensive 
     program established under title I.
       Title II contains retraining income support and 
     unemployment compensation flexibility provisions. Part A 
     contains the provisions which would establish a system of 
     retraining income support for unemployed individuals in long-
     term training.
       Section 201 would establish the retraining income support 
     program. The program is designed to assist permanently laid-
     off individuals who are participating in training programs 
     after those individuals have exhausted all unemployment 
     compensation to which they may have been entitled under State 
     or Federal unemployment compensation laws.
       Section 202 would require, subject to the availability of 
     funds in the account established by part B of the title, 
     payment of retraining income support to individuals who met 
     the eligibility requirements of subsections (a), (b) and (c). 
     Subsection (a) describes those requirements for individuals 
     who have three years or more of work with the employer from 
     which the individual was laid-off. Subsection (b) describes 
     the eligibility requirements for individuals who have been 
     determined to be adversely affected due to international 
     trade under a temporary certification procedure established 
     by part D of the title. Subsection (c) would extend 
     eligibility, beginning in program year 2000, for retraining 
     income support to individuals who have at least one year, but 
     less than three years, of employment with the employer from 
     which they were laid-off and to individuals who have worked 
     for a previous employer in the occupation for one year or 
     more and in the industry of the job from which they were laid 
     off.
       Subsection (a) would become effective for weeks beginning 
     after July 1, 1995. Subsection (b) would be effective between 
     July 1, 1995 and before October 1, 1999. Subsection (c) would 
     become effective for weeks beginning after September 30, 
     1999.
       In general, the eligibility requirements are intended to 
     provides retraining income support to individuals who have 
     (1) been permanently laid off (as defined in section 203), 
     (2) received (or would have received had they applied) 
     unemployment compensation as a result of the layoff, (3) 
     exhausted all rights to unemployment compensation (or would 
     have exhausted had they applied), and (4) are participating 
     and making satisfactory progress in an approved education or 
     training program as part of a reemployment plan developed for 
     the individual by an agency certified by the Secretary to 
     develop such plans.
       In addition, the bill would generally require individuals 
     to be enrolled in an education or training program by the 
     later of the 16th week after the permanent layoff or by the 
     14th week after he, or she, is aware that the layoff is 
     permanent in order to qualify for retraining income support. 
     In situations where there were extenuating circumstances that 
     justified a delay in enrolling in such a program, individuals 
     would be able to get a 30 day extension from the enrollment 
     date requirement. In addition, individuals who have been 
     issued a certificate of continuing eligibility under section 
     120 would have until the sixteenth week after their 
     separation from the subsequent employment to enroll in 
     training.
       Subsection (d) would provide that periods of temporary 
     layoff, of up to 26 weeks, would be counted in determining 
     the length of employment with the layoff employer. In 
     addition, subsection (d) describes other non-work periods 
     that would be included in determining the length of 
     employment with the layoff employer. These include the 
     following: up to 7 weeks in any one-year period of employer-
     authorized leave or in service as a full-time labor 
     representative; up to 12 weeks in a one-year period for 
     conditions that are described in section 102 of the Family 
     and Medical Leave Act of 1993; and up to 26 weeks in any one-
     year period for a compensable disability under worker's 
     compensation or for call-up for active duty in the Armed 
     Forces of the United States.
       Subsection (e) would make it clear that for the purpose of 
     determining an individual's length of tenure with an 
     employer, all jobs worked by an individual that are covered 
     by a multi-employer pension plan defined in ERISA, and all 
     jobs worked that were obtained through a single hiring hall, 
     would be considered employment for the same employer. In 
     addition, the subsection would include as employment for the 
     same employer all employment for a predecessor employer or a 
     joint employer. As a result of the inclusion of employment 
     for a predecessor employer, employees who work for a business 
     that has been the subject of a merger, sale or spinoff would 
     not have their job tenure reduced as a result of that 
     transaction. As a result of the inclusion of employment for 
     joint employers, employees who are leased to another employer 
     would suffer no diminution of their job tenure as a result of 
     the leasing.
       Subsection (f) would provide that brief breaks of up to 
     twenty-eight days, from an education or training program, 
     providing the individual was participating in the program 
     before the break and the break is provided under the program, 
     would be treated as a period in training. As a result, an 
     individual could continue to receive retraining income 
     support during such a break.
       Section 203 would set the weekly retraining income support 
     amount payable to an eligible individual at the amount equal 
     to the most recent benefit amount payable to the individual 
     for a week of total unemployment under the State's 
     unemployment compensation law. That amount would be reduced, 
     dollar for dollar, by any training income support provided 
     for that same week under another Federal program. The weekly 
     amount would also be reduced dollar for dollar by an income 
     earned by the individual in employment that exceeds half of 
     the individual's weekly retraining income support.
       Section 204 would set the maximum amount of retraining 
     income support that is payable to an individual. Under 
     subsection (a), individuals who are either eligible for 
     retraining income support under section 202(a), or would have 
     been eligible for income support under the trade adjustment 
     assistance program, would be eligible for up to 52 weeks of 
     retraining income support in a 104 week period beginning with 
     the date of permanent layoff. Under subsection (b), 
     individuals with at least one, but less than three, years of 
     work with the same layoff employer (or with at least one year 
     with an employer immediately preceding employment with the 
     layoff employer in the same occupation), would be limited to 
     26 weeks of retraining income support within a 78 week period 
     beginning with the date of permanent layoff. Both subsections 
     (a) and (b) would reduce the amount of retraining support by 
     the amount the individual has received from extended or 
     emergency unemployment compensation.
       Subsection (c) would prohibit the payment of retraining 
     income support to an individual who is receiving remuneration 
     from an on-the-job training program.
       Subsection (d) would address the rare situation where an 
     individual becomes eligible for extended unemployment 
     compensation after he, or she, has received the maximum 
     amount of retraining income support. In such a case, the 
     number of weeks of extended benefits would be reduced by the 
     number of weeks that the individual was entitled to 
     retraining income support.
       Section 205 would authorize the Secretary to enter into 
     agreements with the States to pay retraining income support 
     to eligible individuals. Such agreements would, among other 
     things, require the States to notify applicants that 
     participation in an education and training program is a 
     requirement for the receipt of retraining income support and 
     to provide for a system of voluntary withholding of Federal 
     individual income tax.
       Section 206 would require the Secretary to establish a 
     system to pay retraining income support to individuals in a 
     State where there is no agreement for the payment of such 
     support with the State.
       Section 207 would limit the liability of public officials 
     in making payments under this title.
       Section 208 describes the procedures which would have to be 
     followed in cases of fraud and overpayment. Under subsection 
     (a), individuals who receive overpayments would be liable to 
     repay the amount overpaid. However, repayment could be waived 
     if it were determined that the payment was made without fault 
     on the part of the individual and that requiring repayment 
     would be contrary to equity and good conscience. The 
     Secretary could require a State to recover any overpayment by 
     deducting such overpayment from any other unemployment 
     compensation payable to the individual under State or Federal 
     law, as long as the amount deducted would not exceed 50 
     percent of the amount otherwise payable.
       Subsection (b) would define fraud and would specify that an 
     individual who has been found to have committed such would, 
     in addition to any other penalties provided by law, be 
     ineligible for any further payments of retraining income 
     support.
       Subsection (c) would provide that no repayments or 
     deductions could be made until notice and a fair hearing have 
     been provided to the individual and the determination has 
     become final. Under subsection (d) amounts recovered would be 
     returned to the Retraining Income Support Account which would 
     be established by section 221.
       Section 209 would provide for a penalty of a fine of $1000 
     or imprisonment for not more than a year, or both, for anyone 
     who makes a false statement of a material fact or who fails 
     to disclose a material fact for the purpose of obtaining or 
     increasing any retraining income support payment.
       Section 210 would define the terms specific to part A of 
     the bill.
       Section 211 would authorize the Secretary of Labor to 
     prescribe such regulations as may be necessary to carry out 
     part A.
       Section 212 would provide that the provisions of part A 
     become effective on July 1, 1995.
       Subpart B establishes a Retraining Income Support Account. 
     Section 221 would amend Title IX of the Social Security Act 
     to include a new section 911 establish a Retraining Income 
     Support Account as a separate book account in the 
     Unemployment Trust Fund. For fiscal years 1996 through 2000, 
     this new account would be funded from an annually escalating 
     fraction of the proceeds of the 0.2 percent Federal surtax 
     collected under section 3301 of the Internal Revenue Code. 
     Beginning in fiscal year 2001, the entire 0.2 percent will be 
     directly deposited into the account. The flow of funds to 
     other Federal accounts (ESAA, EUCA, FUA) would not be 
     affected by transfer of funds to this account, and the 
     account would not participate in the borrowing among Federal 
     accounts required by section 910. At all times spending for 
     retraining income support would be capped at the amount of 
     funds in the account.
       The new section 911 of the Social Security Act would 
     provide for a permanent appropriation of the funds in the 
     Retraining Income Support Account. This section would also 
     provide for the transfer of funds to the States that have 
     entered into agreements to pay retraining income support. 
     Under the section, the Secretary from time to time would 
     transfer funds for the payment of that support. All money 
     received by a State under this section would have to be 
     used solely for the payment of retraining income support, 
     except that deductions from a payment would be allowed for 
     the purpose of paying health insurance or withholding 
     Federal individual income tax if the recipient of the 
     payment so elected. Any funds not so used in accordance 
     with these provisions would be returned to the Retraining 
     Income Support Account.
       Section 222 would amend section 901(c) of the Social 
     Security Act to permit payment from the Employment Security 
     Administration Account (ESAA) for administrative expenses 
     incurred by States in retraining income support payments.
       Section 223 sets forth conforming amendments to the Social 
     Security Act and the Internal Revenue Code. Subsection (a) 
     would amend section 905 the Social Security Act to adjust the 
     funding of the Extended Unemployment Compensation Account to 
     take into account the funding of the Retraining Income 
     Support Account. Subsection (b) would amend section 3302 of 
     the Internal Revenue Code to reduce the credit employers in a 
     particular State receive for contributions to a State 
     unemployment fund by 7.5 percent if such State did not enter 
     an agreement under section 205 to administer a program for 
     the payment of retraining income support, or did not fulfill 
     its commitments under such an agreement.
       Part C contains the changes in the Tax Code that are 
     necessary for financing the costs of the retraining income 
     support program.
       Section 231 would provide for a permanent extension of the 
     0.2 percent surtax that is scheduled to expire at the end of 
     calendar 1998. For budget purposes, the retraining income 
     support program is primarily financed by program offsets 
     until fiscal year 2000. In that and succeeding fiscal years, 
     the program will be financed entirely by the FUTA surtax.
       Section 232 would amend the Tax Code to require States to 
     allow individuals receiving unemployment compensation or 
     retraining income support to have Federal individual income 
     tax withheld at a rate of 15 percent from such compensation 
     on a voluntary basis. States would be required to conform 
     their unemployment compensation laws to provide for voluntary 
     withholding by January 1, 1996. Conforming amendments would 
     be made to allow the use of trust fund monies to pay for the 
     withholding of Federal individual income tax.
       Part D provides for the integration of trade-impacted 
     workers into the Comprehensive Reemployment System 
     established under title I and part A of title II of this Act.
       Section 241 would phase out both the Trade Adjustment 
     Assistance program and the NAFTA Transitional Adjustment 
     Assistance program. Under subsection (b), those individuals 
     receiving assistance under these programs before July 1, 1995 
     would be able to receive the balance of their benefits.
       Section 242 would establish a transitional certification 
     program for trade-impacted individuals. Subsection (a) 
     establishes within the Department of Labor a temporary, 
     transitional certification program. Upon certification, 
     trade-impacted workers would be eligible for services under 
     the comprehensive reemployment program authorized by title I 
     and income support under part A of title II. The 
     certification process would be the same as is carried out 
     under the current TAA program.
       Subsection (b) sets forth the components of the 
     transitional certification program. Paragraph (1) sets forth 
     the eligibility requirements for certifying a group of 
     workers. Paragraph (2) establishes a petition process by 
     which groups of workers may petition for certification. 
     Paragraph (3) details the process by which the Secretary is 
     to make a determination on such a petition, and excludes 
     those whose last layoff from an impacted firm was more than 
     one year before the date of the petition on which the 
     certification was granted. In addition, paragraph (3) would 
     require the Secretary to publish a summary of the 
     determination in the Federal Register, and also authorizes 
     the Secretary to terminate certifications for firms or 
     subdivisions where layoffs from those entities are no longer 
     attributable to foreign trade. Paragraph (4) would give the 
     Secretary the power to subpena witnesses and documents 
     necessary for the making of such a determination.
       Subsection (c) limits the filing period for petitions for 
     certification under the transitional program to the period 
     after June 30, 1995 and before July 1, 1999.
       Part E includes amendments to the Federal Unemployment Tax 
     Act which would permit States to amend their laws to pay 
     unemployment compensation under a short-time compensation 
     program to an individual who is working reduced hours for the 
     employer, and to pay reemployment bonuses to certain 
     individuals.
       Section 251 is basically a technical amendment which would 
     redefine the current definition of short-time compensation 
     program as it was defined in Title IV of the Unemployment 
     Compensation Amendments of 1992 (P.L. 102-318) and include 
     that definition in section 3306(u) of the Federal 
     Unemployment Tax Act. The short-time compensation program is 
     designed to avert layoffs. Under the program, a worker's 
     hours are reduced in lieu of a layoff and the worker is 
     eligible for unemployment compensation based on the 
     proportion of such reduction.
       Section 252 would permit States to amend their laws to 
     offer reemployment bonuses equal to no more than four times 
     the individual's weekly amount of unemployment compensation 
     to individuals who are: unemployed; eligible for unemployment 
     compensation, determined as likely to exhaust their 
     unemployment compensation; and who find full-time employment 
     within no more than 12 weeks from the date of filing their 
     initial claim for unemployment compensation. In addition, the 
     new employment must be with an employer other than the one 
     with whom the individual was employed prior to receiving 
     unemployment compensation, and the new employment must 
     continue for at least four months. A State would only be 
     allowed to use this program if it did not add any additional 
     costs to the Unemployment Trust Fund and if the State has a 
     plan for implementing the program that is approved by the 
     Secretary.
       Appropriate conforming amendments would also be made to the 
     withdrawal standards in section 3304(a)(4) of the Federal 
     Unemployment Tax Act and section 303(a)(5) of the Social 
     Security Act.
       Section 253 would remove the sunset provision from the 
     Self-Employment Assistance Program, which provides self-
     employment allowances in lieu of unemployment compensation to 
     assist unemployed workers in starting businesses and becoming 
     self-employed. The sunset provision discourages States from 
     developing the supportive program, including entrepreneurial 
     training, that is to accompany the self-employment effort.
       Section 254 provides that the provisions of title II take 
     effect on the date of enactment.
       Title III of the bill would establish a program to 
     encourage States to develop and implement Statewide networks 
     of one-stop career centers. These networks would provide a 
     common point of access to employment, education and training 
     information and services to students, workers, and employers. 
     The centers would make services available under employment 
     and training programs administered by the Secretary and would 
     encourage the participation of other Federal, State and local 
     human resource programs.
       Section 301 describes the purposes of title III. These 
     include: establishing a national program of grants and 
     waivers of Federal statutory and regulatory requirements to 
     provide States with the opportunity to develop and implement 
     one-stop career center networks; providing seed money to 
     encourage a flexible, nationwide system of one-stop career 
     centers; promoting universal access to a comprehensive menu 
     of quality employment, education and training information and 
     services; encouraging a customer-oriented approach to the 
     provision of services, including features to enhance customer 
     choice and ensure that the satisfaction of individuals with 
     services received is a primary consideration in the 
     administration of the program; establishing a governance 
     structure composed of State, local and Federal partners to 
     ensure common goals, planning, service coordination and 
     oversight of the networks; and providing State and local 
     areas with increased flexibility in the administration of 
     employment and training programs in exchange for greater 
     accountability for outcomes.
       Part A of title III contains the components of the 
     voluntary one-stop career center system. Section 311 
     identifies the seven basic components, which are: the 
     establishment of a workforce investment board; the 
     establishment of one-stop career centers; the provision of 
     certain common services through the one-stop career centers; 
     the participation of Federal employment and training 
     programs; an agreement between all affected parties regarding 
     the operation of the centers; quality assurance systems, 
     including performance standards; and the establishment of a 
     State Human Resource Investment Council.
       Section 312 describes the establishment and functions of 
     the workforce investment boards. Under section 312(a), the 
     Governor is to designate one-stop service areas (OSSAs) 
     within the State. The OSSAs are to be either the geographic 
     boundaries of the labor market areas within the State 
     (although no service delivery area or substate area may be 
     subdivided among the OSSAs), the substate areas established 
     under title I of the Act or a consortium of such areas, or 
     the service delivery areas established under JTPA or a 
     consortium of such areas. In order to promote planning and 
     stability, OSSAs may not be redesignated more frequently than 
     once every four years.
       Under section 312(b), for each OSSA, the chief local 
     elected official or officials is to establish a workforce 
     investment board. The board is to be composed of five 
     categories of members: first, representatives of private 
     sector employers, who are to be a majority of the board and 
     consist of owners, chief executives or chief managers of 
     businesses; second, representatives of organized labor, and 
     community-based organizations, who are to be at least 25 
     percent of the board membership and officers of their 
     organizations; third, representatives of educational 
     institutions; fourth, appropriate community leaders, such as 
     leaders of economic development agencies, human service 
     agencies and institutions, veterans' organizations and 
     entities providing job training; and fifth, a chief local 
     elected official, who is to be a non-voting member.
       The employer representatives are to be nominated by general 
     purpose business organizations. The labor representatives are 
     to be nominated by recognized State and local labor 
     federations, except that if the federations are unable to 
     nominate a sufficient number of representatives, individual 
     workers may be included. The elected official is to be 
     selected from among the elected officials in the area by such 
     officials. All other members are to be nominated by 
     interested organizations.
       The appointments are to be made by the chief local elected 
     official, except if there is more than one unit of government 
     in the OSSA the appointments are to be made in accordance 
     with an agreement between the officials for such units. 
     Absent such agreement, the Governor would appoint the 
     members. The size of the board is to be initially determined 
     by the chief local elected official or officials, and 
     thereafter by the board itself. The members are to be 
     appointed for fixed and staggered terms, and any vacancy is 
     to be filled in the same manner as the original appointment. 
     Any board member may be removed for cause.
       The board is to elect a chairperson, from among members who 
     are not public officials or the head of a public agency, for 
     a period to be determined by the board. The chairperson is to 
     appoint appropriate staff, who are not to serve concurrently 
     as the staff of any of the participating programs. The staff 
     may include an executive director.
       The board is to be funded pursuant to the one-stop career 
     center operating agreements, based on a budget requested by 
     the board and approved by the chief local elected official. 
     No member of the board may cast a vote that would provide 
     direct financial benefits to that member.
       A private industry council (PIC) may become a board with 
     the approval of the chief elected officials if the PIC meets 
     the composition requirements or is reconstituted to meet such 
     requirements. A State Human Resource Investment Council may, 
     in any case where the OSSA is the State, be reconstituted as 
     the board.
       The Governor is to certify that a board meets the 
     requirements of this section.
       Section 312(c) describes the six basic functions of the 
     board. First, the board is to develop strategic plans and 
     provide policy guidance to the workforce development programs 
     in the OSSA. The strategic plan is to be consistent with the 
     statewide strategic plan developed by the State Human 
     Resource Investment Council and to include measurable 
     objectives for improving the quality and effectiveness of 
     workforce preparation, development, and training in the OSSA 
     and methods for coordinating the programs to provide maximum 
     coverage of the workforce, ensuring equitable access by 
     population subgroups, and enhancing the delivery of 
     services in the OSSA. Second, the board is to utilize 
     available labor market information and other methods to 
     identify available jobs and occupations in demand 
     currently and in the future, the skill requirements 
     relating to those jobs and occupations, and the education 
     and training services available to develop such skills. 
     This information is to be used by the board to develop 
     goals and identify activities to be provided by the 
     workforce development programs. Third, the board is to 
     review and approve budgets for certain Department of 
     Labor-administered employment and training programs and 
     review and provide recommendations regarding the budgets 
     of other programs participating in the one-stop career 
     centers. Fourth, the board is to assume the policy-making 
     functions of the PICs under title II of JTPA and of the 
     Job Service Employer Committees. However, the board may 
     not be the administrative entity for programs under JTPA 
     (as are some PICs), and may not operate any other 
     programs. Fifth, the board is to conduct oversight of 
     implementation of the strategic plan it develops and of 
     the overall performance (rather than day-to-day 
     operations) of programs participating in the one-stop 
     system. Finally, the board is to administer the procedures 
     for establishing one-stop career centers described below.
       Section 313 describes the two options for establishing one-
     stop career centers. Section 313(a) provides that the 
     Governor and the chief local elected official or officials 
     are to jointly select either a consortium option or a 
     multiple independent operator option to establish the 
     centers.
       Section 313(b) describes the consortium option. Under this 
     option, the one-stop career centers in the OSSA are to be 
     administered by a consortium that consists of the Employment 
     Service, the substate grantee or grantees under title I of 
     the Act, the administrative entity or entities under title II 
     of JTPA, the State UI agency (unless such agency chooses not 
     to participate), and one or more additional partners that is 
     either a unit of government, a public or private service 
     provider, or a consortium of such units and providers.
       A consortium may not be designated to operate a one-stop 
     career center system unless it meets criteria described below 
     under the multiple operator option and agrees to provide for 
     customer choice by operating two or more centers, by 
     administering budget resources to reflect, at least in part, 
     the extent to which each center is used by the public, and by 
     providing equitable access to centers by segments of the 
     population within the one-stop service area.
       A consortium is also to identify to the board the 
     procedures that would be used to integrate the administration 
     of programs, such as procedures for cross-training of staff, 
     collocation of facilities, and use of common forms and 
     practices.
       The Governor and chief local elected official or officials, 
     in consultation with the workforce investment board, are to 
     review each consortium's performance and once every four 
     years to determine whether to renew the charter.
       Section 313(c) described the multiple independent operator 
     option. Under this option, the board is to select two or more 
     entities to operate one-step career centers pursuant to an 
     open selection process. Any entity or consortium of entities 
     may apply to be selected as an operator, including employment 
     service offices, career center operators under title I, 
     service delivery areas or administrative entities under title 
     II of JTPA, community colleges and area vocational schools, 
     community-based organizations and other interested 
     organizations.
       There is a special rule under this selection option whereby 
     if the Employment Service or a consortium including the 
     Employment Service applies to be selected and meets the 
     selection criteria, it must be selected as an operator.
       The board is to publish information to notify organizations 
     and individuals in the area of: the selection procedures, 
     including the estimated number of one-stop career centers 
     needed and the proposed number of operators to be selected; 
     the application procedures; the criteria for selection; and 
     other information the board deems relevant. In determining 
     the number of one-stop career center operators to be 
     selected, which is to be two or more (see single operator 
     exception below), the board is to consider the size of the 
     labor market, the number of individuals likely to use the 
     centers, the number and capabilities of potential operators, 
     and equitable access by segments of the population to the 
     centers.
       The selection criteria are to be issued by the board, 
     consistent with guidelines provided by the Secretary, and 
     based on objective criteria and measures. An applicant may 
     not be selected as an operator (under either selection 
     option) unless the applicant demonstrates to the 
     satisfication of the board that it would: operate a center 
     that would provide the specified common services; utilize 
     automated information systems to exchange information among 
     centers; meet performance standards; ensure effective fiscal 
     and program management; administer the process of referring 
     participants to education and training in an objective and 
     equitable manner; and provide services on a nondiscriminatory 
     basis.
       Notwithstanding the requirement for two or more operators, 
     if only one applicant meets the selection criteria, that 
     applicant may be selected as the sole career center operator 
     in the OSSA. This open selection process, under this option, 
     is to be conducted once every four years.
       The career centers established under either option are to 
     be issued a charter by the board that will identify the 
     number and location of one-stop centers in the OSSA and the 
     entities operating the centers, provide for display of a 
     national one-stop career center logo, and include such other 
     conditions as the board determines is appropriate.
       Section 313(e) contains ``honest broker'' provisions for 
     one-stop career center operators that concurrently provide 
     education and training services to title I participants. If 
     the workforce investment board, in an annual review, 
     determines that such center has engaged in a pattern of 
     inappropriate referrals to the education and training 
     services of the operator, the Board may terminate the charter 
     of the center or require the operator to cease providing 
     services to participants as a condition for continuing to 
     operate the center.
       Section 314 describes the services to be provided through 
     the one-stop career centers. Section 314(a) describes the 
     basic services which are to be made available to the public 
     by each center free of charge. These twelve services are: 
     outreach, including efforts to expand awareness of training 
     and placement opportunities for limited-English proficient 
     individuals, disadvantaged youth and adults, and individuals 
     with disabilities; intake and orientation to the center; 
     assistance in filing an initial unemployment compensation 
     claim; a preliminary assessment of skill levels and service 
     needs; local, regional and national labor market information, 
     including job vacancies, local occupations in demand and the 
     earnings and skill requirements for such occupations; job 
     search assistance; job referrals and job placement 
     assistance; information relating to job training and 
     education programs (including student financial assistance), 
     including the quality and requirements of such programs, and 
     appropriate referrals to such programs; information collected 
     pursuant to the performance standards and customer feedback 
     requirements; assistance in evaluating whether an individual 
     is likely to be eligible for any participating programs; 
     information on programs and providers of dependent care and 
     other supportive services; and soliciting and accepting job 
     orders submitted by employers and referring individuals in 
     accordance with such orders.
       Section 314(b) describes the intensive services that are to 
     be provided by the center in accordance with the operating 
     agreement and which must be made available to title I 
     participants who are unable to obtain employment through the 
     basic services. These twelve services are: comprehensive and 
     specialized assessments of skill levels and service needs, 
     including diagnostic testing and in-depth interviewing; 
     the development of individual reemployment plans 
     identifying the employment goal, achievement objectives, 
     and the appropriate combination of services for an 
     individual to achieve the goal; individualized counseling 
     and career planning, including peer counseling and 
     counseling and planning relating to nontraditional 
     employment opportunities; group counseling, including peer 
     counseling which may be available to individuals jointly 
     with immediate family members, and may include counseling 
     on stress management and financial management, and which 
     shall be a basic service for participants in title I under 
     this Act; case management and periodic review of progress 
     toward the employment goal; job development; out-of-area 
     job search allowances; relocation allowances; follow-up 
     counseling; assistance in the selection of education and 
     training providers; assistance in obtaining income support 
     to enable an individual to participate in training; and 
     supportive services.
       Section 314(c) describes specialized employer services 
     which may be provided. These are: customized screening and 
     referral of individuals for employment; customized assessment 
     of the skill levels of current employees; analysis of an 
     employer's workforce skill needs; and other specialized 
     services.
       Section 314(d) authorizes the one-stop career centers to 
     provide such other additional services as are specified in 
     the operating agreement.
       Section 314(e) authorizes a one-stop career center to 
     charge fees for the intensive services, specialized employer 
     services, and the additional services described above if the 
     board approves the fees. However, no fees may be charged for 
     any service an individual is eligible to receive free of 
     charge from a participating program unless there are no funds 
     available under the program to provide those services. All 
     income received from the fees by a public or private non-
     profit center operator are to be used to expand or enhance 
     the services provided through the centers.
       Section 315 identifies the programs that are to participate 
     in the operation of the one-stop career centers. Section 
     315(a) provides that the programs that are to make basic 
     services available to participants through the one-stop 
     centers are: programs under title I; programs under the 
     Wagner-Peyser Act; programs under title II of JTPA; the 
     Veterans' Employment Service; the Senior Community Service 
     Employment program under title V of the Older Americans Act; 
     and programs authorized under Federal and State UI laws.
       Of these programs, title I programs are to provide basic 
     and intensive services through one-stop centers (which are to 
     replace the career centers established under that title). The 
     Wagner-Peyser Act program is to make applicable basic and 
     intensive services available only through the centers. The 
     Veterans Employment Service is to make applicable basic 
     and intensive services available through the centers, but 
     may also provide such services at other locations. All 
     other identified programs may make basic services 
     available through other locations and providers in 
     addition to making them available through the centers. All 
     identified programs may provide additional services 
     through the centers in accordance with the operating 
     agreement.
       Section 315(b) provides that other human resource programs 
     may also provide services through the centers and become a 
     party agreement if the board, the local elected official or 
     officials, the Governor and executive officer of other 
     participating programs concur. These programs may include the 
     Job Opportunities and Basic Skills (JOBS) program, the Food 
     Stamp Employment and Training program, the Job Corps, 
     veterans training programs under title IV-C of JTPA, the 
     Perkins Vocational and Applied Technology Education Act 
     programs, Adult Education Act programs, Vocational 
     Rehabilitation Act programs, and programs under the School-
     to-Work Opportunities Act.
       Section 316 describes the operating agreements that are to 
     govern the administration of the one-stop career center 
     system in the OSSA. The operators are to enter into a written 
     agreement with the board and participating programs covering 
     the operation of the centers. The Governor and chief local 
     elected official or officials must approve the agreement and 
     are to oversee the development of the agreement, ensure that 
     it meets applicable requirements, and monitor its 
     implementation.
       Section 316(b) describes the contents of the agreement. It 
     is to identify: the services to be provided by the centers 
     and the extent to which the participating programs will 
     provide services through the centers; methods for the 
     referral of individuals by the centers to appropriate 
     services and programs; the financial and nonfinancial 
     contributions to be made to the centers by the participating 
     programs, which are to be based on factors including the 
     number of participants served by the centers and the quality 
     of the services; the financial liability of the respective 
     parties relating to the funds contributed by the 
     participating programs; the financial contributions to be 
     made for the administration of the workforce investment board 
     by each participating program; methods of administration and 
     oversight; a description of how services are to be provided, 
     such as the methods for assessing the skills of individuals; 
     procedures to ensure the utilization of a common local job 
     bank; procedures to be used to ensure compliance with the 
     statutory and regulatory requirements of the participating 
     programs; the duration of the agreement and procedures for 
     amendment; and other provisions the parties deem appropriate.
       Section 316(c) requires the parties to the written 
     agreement (center operators, the workforce investment board, 
     and participating programs) to develop an annual budget for 
     the one-stop career centers and the workforce investment 
     board. The budget for the board is subject to the approval of 
     the local elected official, and the one-stop career center 
     budgets are subject to the approval of both the local elected 
     official and the Governor.
       Section 317 describes the quality assurance systems 
     relating to the performance of the centers and workforce 
     investment boards. Section 317(a) describes the performance 
     standards system. The Secretary is to prescribe separate 
     performance standards for the centers and boards. The 
     standards for centers are to be based on factors the 
     Secretary determines are appropriate. These factors may 
     include: placement, retention and earnings of participants in 
     unsubsidized employment; the provision of services to hard-
     to-serve populations; the acquisition of skills based on 
     skill standards and the certification system established and 
     endorsed under the Goals 2000: Educate America Act; the 
     satisfaction of participants with services provided and 
     employment outcomes; the satisfaction of employers with the 
     job performance of individuals placed; and measures of cost 
     efficiency. The standards for workforce investment board are 
     to be based on the number of job openings received and the 
     proportion of employers listing such openings, the number of 
     job openings filled, and the overall performance of career 
     centers in the one-stop service area. The Governor is to 
     adjust the performance standards for centers and boards, 
     within parameters established by the Secretary, based on 
     economic, geographic and demographic factors in the State and 
     local areas and the characteristics of the population to be 
     served.
       The Secretary is to establish uniform criteria for 
     determining whether a one-stop career center of workforce 
     investment board fails to meet performance standards. The 
     Governor is to provide technical assistance to one-stop 
     career centers and boards failing to meet performance 
     standards and is to report annually to the Secretary on the 
     performance of each center and board and the technical 
     assistance to be provided. If a center fails to meet the 
     performance standards for two consecutive years, the board is 
     to revoke the charter of the center. If the center is 
     operated under the consortium option, the board is to select 
     another entity to operate the center pursuant to the multiple 
     independent operator selection process. If the center 
     operator was selected pursuant to that open selection 
     process, then another operator is to be selected pursuant to 
     that same process. If a board continues to fail to meet 
     performance standards for two consecutive years, the Governor 
     must notify the Secretary and the board, and must replace the 
     members of the board, direct the board to replace staff, 
     direct the board to replace the chairperson, or take 
     other appropriate action. The board's revocation of a 
     charter may be appealed by an operator to the Governor and 
     then to the Secretary. A board may similarly appeal any 
     sanctions imposed by the Governor.
       Section 317(b) describes the customer feedback process that 
     is to be in place to ensure that each center is responsive to 
     the needs of the individuals receiving services. Under this 
     subsection, the board is to establish methods for obtaining, 
     on a regular basis, information from individuals and 
     employers receiving services through a center on the 
     effectiveness and quality of the services. The feedback 
     mechanisms may include surveys, interviews, focus groups and 
     other techniques. The board is to analyze the information 
     obtained and provide a summary of the information and the 
     analysis to the center for use in improving the quality of 
     services.
       Section 318 provides for the establishment of a State Human 
     Resource Investment Council (HRIC) as part of the one-stop 
     career center system. Such councils are authorized under 
     title VII of JTPA and are intended to consolidate separate 
     advisory entities to provide the Governor with a source of 
     coordinated and comprehensive advice relating to the 
     administration of Federal human resource programs in the 
     State. Those human resource program include JTPA, Perkins 
     Vocational Education, Adult Education Act programs, JOBS, and 
     the Food Stamp Employment and Training programs.
       Under this section, the State must establish a HRIC and the 
     HRIC is to identify the human investment needs in the State 
     and recommend to the Governor goals for meeting those needs, 
     recommend to the Governor goals for the development and 
     coordination of the human resource system in the State, 
     prepare and recommend to the Governor a strategic plan for 
     accomplishing the goals, and monitor the implementation and 
     evaluating the effectiveness of the plan (such plan is an 
     optional activity under JTPA). In addition, the HRIC is to 
     advise the Governor with respect to all aspects of the 
     development and implementation of the one-stop career center 
     system. Such advice would relate to assessing the labor 
     market, economic and workforce development needs in the 
     State, the designation of OSSAs, measures to evaluate the 
     effectiveness of the workforce investment boards and to 
     facilitate the provision of resources and technical 
     assistance to the boards, developing a mechanism for waiving 
     State statutory and regulatory requirements that would impede 
     the one-stop system, and developing a strategy for collecting 
     information to evaluate the effectiveness of the system and 
     workforce investment programs in the State.
       Part B of title III authorizes grants and waivers to 
     promote the development and implementation of the one-stop 
     career center system.
       Section 331 authorizes planning and development grants. 
     Section 331(a) authorizes the Secretary to establish a 
     program of competitive grants to the States to assist in the 
     planning and development of a comprehensive Statewide network 
     of one-stop career centers.
       Section 331(b) provides that a State desiring a grant is to 
     submit an application to the Secretary at the time, in the 
     manner, and containing the information specified by the 
     Secretary. The application is, at a minimum, to include a 
     timetable and estimated amount of funds needed to plan and 
     develop the one-stop career center system in the State and to 
     describe the manner in which the Governor, local elected 
     officials, representatives of employees and voluntary 
     organizations, community and business leaders, 
     representatives of affected programs and service providers 
     will work together in the planning and development process.
       Section 331(c) authorizes the planning grant funds to be 
     used for activities including: identifying and establishing 
     an appropriate State administrative structure; establishing 
     broad-based partnerships to participate in the one-stop 
     system; developing plans to establish the workforce 
     investment boards and the State Human Resource Investment 
     Council; developing the process for selecting and chartering 
     centers; supporting local planning efforts; initiating pilot 
     programs to test components of the system, such as designing 
     common intake forms; analyzing State and local labor markets 
     to assist in the design of the system; analyzing current 
     statutory and regulatory impediments to the establishment of 
     the one-stop system and preparing waiver requests; preparing 
     the Statewide implementation plan required as part of the 
     application for an implementation grant; and other related 
     activities.
       Section 332 authorizes State implementation grants. Section 
     332(a) authorizes the Secretary to establish a program of 
     competitive grants to States to assist in the implementation 
     of the Statewide one-stop career center system.
       Section 332(b) provides that any State desiring a grant is 
     to submit, with the agreement of the local elected officials 
     from the OSSAs that are scheduled to immediately begin 
     implementation of the system, an application to Secretary in 
     accordance with procedures specified by the Secretary. The 
     application is, at a minimum, to contain: a plan for a 
     comprehensive, statewide one-stop career center system that 
     includes the seven basic components descried in part A; 
     requests, if any, for waivers of Federal statutory or 
     regulatory requirements necessary to implement the system; 
     and other information specified by the Secretary.
       The comprehensive State plan is to: designate a fiscal 
     agent to be accountable for grant funds provided under this 
     section; identify the OSSAs; identify the OSSAs that will 
     immediately begin implementation and the implementation 
     schedule for the remaining OSSAs in the State; identify the 
     workforce development programs that will participate in the 
     system; identify the selection process option that will be 
     used in each OSSA; describe the performance standards the 
     State intends to meet; describe the collaborative procedures 
     to be used by the Governor, local elected officials and 
     officials administering the participating programs; describe 
     the procedures for ensuring the active involvement of all 
     affected parties, including employers, educators, labor 
     organizations, community-based organizations, service 
     providers, and State and local human resource agencies; 
     specify the manner in which States will ensure equitable 
     opportunities for jobseekers, students and employees to 
     receive services from the centers; describe the way in which 
     existing one-stop initiatives, if any, will be integrated 
     into the one-stop system; identify the administrative and 
     management systems that will be used, and the resources that 
     will be used to maintain the system after the grant funds are 
     exhausted.
       Section 332(c) specifies the factors which will be given 
     special consideration in the evaluation of the State grant 
     application. The factors are: the extent to which the State 
     one-stop service areas are based on labor market areas, the 
     number of Federal programs that will participate in the 
     centers, inclusion of JOBS and Perkins vocational education 
     programs in the one-stop system, the extent to which a State 
     has already implemented components of the one-stop system 
     described in part A, the proportion of the State's population 
     that would be covered by one-stop service areas agreeing to 
     immediate implementation, and the extent to which the State 
     will supplement access to the one-stop career center services 
     through methods such as kiosks in shopping centers, 
     libraries, community colleges and other community 
     organizations, and through personal telephones or computer 
     lines.
       Section 332(d) describes application review procedures. The 
     Secretary determines whether to approve the State's plan. 
     When the determination is positive, the Secretary further 
     determines whether to do one or more of the following: award 
     an implementation grant; approve the State's request, if 
     applicable, for a waiver; or inform the State of the 
     opportunity to apply for further development funds, unless 
     the State is receiving an implementation grant.
       Section 332(e) prohibits the expenditure of grant funds for 
     construction of new buildings.
       Section 332(f) specifies that implementation grants are for 
     a one-year period and are renewable for each of the 
     two succeeding years if the Secretary determines the State 
     is making satisfactory progress in implementing its plan.
       Section 333 authorizes the waiver of Federal statutory and 
     regulatory requirements that would impede implementation of 
     the one-stop career center system. Section 333(a) provides 
     that a State may, at any point during the development or 
     implementation of the one-stop career center system, request 
     that the Secretary waive statutory and regulatory 
     requirements relating to certain employment and training 
     programs administered by the Secretary of Labor.
       Section 333(b) authorizes the Secretary to waive the 
     requirements of the statutes and (with the concurrence of the 
     Director of OMB) OMB circulars listed in subsection (c) and 
     related regulations in response to a request from a State if 
     four conditions are met. These conditions are that: the State 
     submits a plan (containing information the Secretary 
     requires) for a comprehensive statewide one-stop career 
     center system that either includes the seven basic components 
     described in part A (this plan may or may not be part of an 
     application for an implementation grant) or, while not 
     including all these components, demonstrates that the one-
     stop system will substantially achieve the objectives of the 
     one-stop system; the Secretary determines that the 
     requirement requested to be waived impedes the ability of the 
     State to implement the system; the State waives or agrees to 
     waive similar provisions of State law; and the State has 
     provided an opportunity for the State council or the State 
     Human Resource Investment Council and other interested 
     entities and individuals to comment on the proposed waiver 
     and included such comments with the request. The Secretary is 
     to act promptly on each request and each waiver may be 
     approved for a period of up to four years. This period may be 
     extended if the Secretary determines that the waiver has been 
     effective in assisting the State in implementing the one-stop 
     system.
       Section 333(c) identifies the six statutes that may be 
     waived, which are: title I of this Act, JTPA, the Wagner-
     Peyser Act, title V of the Older Americans Act, title III of 
     the Social Security Act (which provides for UI administrative 
     grants to the States), and chapter 41 of title 38 (veterans 
     employment programs). In addition, this section authorizes 
     the Secretary to waive OMB circulars A-87 (relating to cost 
     principles for State and local governments), A-102 (relating 
     to grants and cooperative agreements with State and local 
     governments), A-122 (relating to non-profit organizations), 
     and the regulations at 29 CFR 97 (relating to uniform 
     administrative regulations for grants and cooperative 
     agreements to State and local governments).
       Section 333(d) provides that the Secretary may not waive 
     any requirements of the statutes identified above that relate 
     to: the basic purposes or goals of the affected programs; 
     maintenance of effort; the formula allocation of funds; 
     the eligibility of individuals; public health or safety, 
     labor standards, civil rights, occupational safety and 
     health or environmental protection; or prohibitions or 
     restrictions relating to the construction of buildings or 
     facilities.
       Section 333(e) provides that the Secretary is to 
     periodically review the performance of the States that have 
     been granted waivers and is to terminate a waiver if the 
     State's performance is inadequate or the State has failed to 
     waive similar requirements of State law.
       Section 333(f) provides that if there is sufficient 
     information from waiver requests to identify provisions of 
     the circulars or related regulations that consistently impede 
     implementation of a one-stop system, the Secretary is to 
     submit a plan to OMB to grant a general waiver for one-stop 
     areas. The Director of OMB may approve the plan and authorize 
     the Secretary to grant these general waivers if the Director 
     determines the plan would not jeopardize the integrity of 
     Federal funds and would be consistent with the objectives of 
     title III.
       Section 334 authorizes the pooling of administrative 
     resources. During the implementation of a one-stop system, a 
     State may, at any point, on behalf of one or more one-stop 
     service areas, submit to the Secretary a plan for the pooling 
     of administrative funds available under two or more of the 
     mandatory participating programs. Under the State plan, each 
     participating program may transfer administrative funds to 
     the one-stop system and allocate the transferred amount to 
     administrative costs at the time of transfer. No further 
     allocation of the transferred funds would have to be made to 
     the particular program. Administrative funds so transferred 
     must be spend only for the administration of allowable 
     activities under the one-stop career center system.
       Notwithstanding section 31 U.S.C. 1301, which requires all 
     funds to be allocated to the source of their appropriation, 
     or other provisions of law, the Secretary may approve a State 
     pooling plan if the Secretary determines the plan would not 
     jeopardize the administration of the participating programs 
     and would facilitate implementation of the one-stop system. 
     Where pooling plans are approved, the Secretary is required 
     to regularly review the performance of the applicable one-
     stop service areas and to rescind the approval if the 
     Secretary determines the area's performance does not 
     adequately justify continuation of the plan or there has been 
     a significant adverse effect on the participating programs.
       Section 334(c) provides that, upon approval of the 
     Governor, real property purchased pursuant to UI 
     administrative grants, the Reed Act, or the Wagner-Peyser Act 
     before the effective date of this Act may be used for the 
     one-stop career center. Under current law, such property 
     may only be used for UI or ES programs, depending on the 
     source of funds, and, if such property is to be used for 
     any other purposes, it must be sold. This change will 
     facilitate collocation and an effective one-stop setting. 
     Except if otherwise provided in a pooling arrangement, 
     there are certain limitations included on the future use 
     of such funds to pay for property used by the one-stop 
     center in order to protect the integrity of such funds.
       Part C includes additional activities which support one-
     stop career center systems.
       Section 351 provides for the development of a customer 
     service compact. The Secretary is to establish within each 
     one-stop state a process, which includes an annual meeting, 
     involving all parties who administer the one-stop system--the 
     Secretary, Governor, each workforce investment board, and 
     each one-stop career center--to reach an informal agreement 
     among the parties. The agreement is to relate to the shared 
     goals and values that will govern administration of the 
     system, the roles and responsibilities of each party in 
     tailoring and strengthening participant services, methods to 
     ensure that participant satisfaction with services is a 
     primary consideration in administration of the one-stop 
     system, and other appropriate matters.
       Section 352 specifies additional State responsibilities for 
     State implementing a one-stop career center system. These 
     include developing and operating administrative and 
     management systems that promote the effective operation of 
     the system; monitoring compliance of the workforce investment 
     boards with the requirements of this title; and providing any 
     necessary technical assistance to workforce investment 
     boards.
       Section 353 defines additional Federal responsibilities. 
     The Secretary is authorized to monitor all recipients of 
     funds under the title for compliance with the title's 
     provisions. The Secretary is required to provide staff 
     training and technical assistance to improve the capacity of 
     the full range of public and private partners in the one-stop 
     system to develop and implement the system, and to integrate 
     the capacity-building activities with the Information 
     Dissemination Network established under section 453 of the 
     Job Training Partnership Act. In addition, the Secretary is 
     to develop a national logo and name for one-stop career 
     centers wherever they are located. Finally, the Secretary is 
     to provide for evaluation of the programs under this title, 
     including their cost-effectiveness in achieving the intended 
     purposes. The evaluations must use recognized statistical 
     methods and techniques of the behavior and social 
     sciences, including methods that control for self 
     selection, where feasible, and may include analyses of the 
     costs and benefits of programs, participant and community 
     impacts, and the extent to which needs of various 
     demographic groups are met, and the effectiveness of the 
     various delivery systems.
       Part D provides for the effective date of this title. 
     Section 371 provides that the title is to take effect on July 
     1, 1995, except performance standards, which take effect July 
     1, 1996.
       Title IV establishes a National Labor Market Information 
     System that builds upon and strengthens existing capabilities 
     at the Federal, State and local levels.
       Section 401 states that it is the purpose of the title to 
     provide for the development of a labor market information 
     system that will provide locally-based, accurate, up-to-date, 
     easily accessible, user-friendly labor market information, 
     including comprehensive information on job openings, labor 
     supply, occupational trends, wage rates and trends, skill 
     requirements, and performance of programs providing requisite 
     skills, and labor market data necessary for the effective 
     allocation of resources.
       Section 402 requires the Secretary to develop, in 
     coordination with other Federal, State and local entities, a 
     strategy to establish a national labor market information 
     system. This strategy must be designed to fulfill the labor 
     market information requirements of other specified Federal 
     programs. In implementing the strategy, the Secretary is 
     authorized to expend funds authorized under this title and 
     funds otherwise available for such purposes, and to enter 
     into intergovernmental cooperative agreements, award grants, 
     and foster the creation of public-private partnerships. The 
     Secretary is also authorized to conduct research and 
     demonstration projects.
       Section 403 contains the components of the national labor 
     market information system. Section 403(a) specifies that the 
     Secretary, in cooperation with Federal, State and local 
     entities, and public-private partnerships, is to develop a 
     national labor market information system that makes available 
     the following information: information on the local economy, 
     automated listings of job openings and job candidates, growth 
     and replacement need projections, current supply of labor 
     with specific occupational skills and experience, automated 
     screening systems to determine candidate eligibility for 
     services, consumer reports on local education and training 
     providers, results of customer satisfaction measures for 
     Career Centers, One-Stop Career Centers and other providers, 
     national, State and substate profiles of industries, and 
     automated occupational and career information and exploration 
     systems.
       Section 403(b) requires the Secretary to promulgate 
     technical standards necessary to promote efficient exchange 
     of information between the local, State and national levels, 
     including standards to ensure that data are comparable.
       Section 403(c) requires the Secretary, in consultation with 
     the Secretary of Education, other Federal agencies and State 
     and local governments, to set standards for consumer reports, 
     and create a mechanism for collection and dissemination of 
     the reports.
       Section 403(d) requires the Secretary to provide for the 
     evaluation of national labor market information procedures, 
     products and services, including cost-effectiveness and the 
     level of customer satisfaction. The evaluations may include 
     analyses of the precision of estimates produced or collected, 
     examination of the uses of the data, appropriateness of the 
     uses, and relative data costs/benefits.
       Section 404 requires the Secretary to coordinate the 
     activities of Federal agencies responsible for the collection 
     and dissemination of labor market information, and to ensure 
     the appropriate dissemination of information that promotes 
     improvement in the quality of labor market information.
       Section 405 specifies that title IV will take effect on 
     July 1, 1995.
       Title V amends title II of the Job Training Partnership Act 
     to establish a new part D, ``Reinvention Labs'', permitting 
     the Secretary to waive Federal statutory or regulatory 
     requirements relating to programs for the economically 
     disadvantaged youth and adults in order to promote program 
     innovations.
       Section 501 adds the new Part D to title II of JTPA. The 
     new section 281 of part D states that the purpose of the part 
     is to encourage innovative program designs to enhance the 
     provision of services to and outcomes for economically 
     disadvantaged youth and adults, to develop knowledge relating 
     to effective approaches to serving these groups, and to give 
     service delivery areas (SDAs) greater flexibility in 
     operating their programs in exchange for higher levels of 
     accountability for results.
       The new section 282 describes the process for applying for 
     a waiver. Any SDA or consortium of SDAs that desires a waiver 
     of statutory or regulatory requirements relating to parts A, 
     B, or C of title II of JTPA must submit an application to the 
     Secretary that includes a plan that incorporates innovative 
     administrative, service delivery, or other program design 
     components, measurable goals and outcomes to be achieved, the 
     statutory and regulatory requirements to be waived and the 
     rationale, assurances that the SDA and State will participate 
     in a rigorous evaluation to determine whether the goals and 
     outcomes have been achieved, and other components and 
     information the Secretary determines are appropriate.
       The new section 283 authorizes the Secretary to waive 
     statutory or regulatory requirements if the Secretary 
     determines they would impede the SDA in carrying out its 
     plan, the SDA and State have provided interested entities and 
     individuals an opportunity for comment and have submitted 
     such comments to the Secretary, and the Secretary has 
     approved the plan. The waivers may not alter the purposes or 
     goals of the affected program; the formula allocation of 
     funds under the program; eligibility requirements; any law 
     respecting public health or safety, labor standards, civil 
     rights, occupational safety or health, or environmental 
     protection; or prohibitions or restrictions relating to 
     construction of buildings or facilities. The Secretary is 
     limited to approving 75 applications nationwide, and each 
     waiver is limited to 2 years, except that the Secretary may 
     extend the period of the waiver if it is determined the 
     waiver has been effective in enabling the SDA to carry out 
     the purposes of JTPA (but in no case may waivers remain in 
     effect after a date that is 4 years after enactment of the 
     Reemployment Act). The Secretary must periodically review the 
     performance of SDAs receiving waivers, and must terminate the 
     waiver if the performance of the SDA is inadequate to justify 
     the waiver's continuation.
       The new section 284 authorizes the Secretary to provide 
     technical assistance in the development and implementation of 
     the programs and requires the Secretary to conduct an 
     evaluation of the program. The Secretary is to submit a 
     report relating to the evaluation to the Congress not later 
     than 5 years after enactment of this Act.
       Section 502 makes a technical amendment to section 
     141(d)(3)(B) of JTPA to add postsecondary vocational 
     institutions to the list of other postsecondary institutions 
     that are exempt from breaking down costs for purposes of the 
     JTPA program.
       Section 503 provides that the Reinvention Lab provisions 
     are to take effect on the date of enactment and to terminate 
     5 years thereafter. The technical amendment to the tuition 
     definition would take effect on the date of 
     enactment.
 Mr. BRADLEY. Mr. President, as I said on the floor last fall, 
the world is undergoing four fundamental transformations: The end of 
the age of ideology, the explosion of world markets, the knowledge 
revolution, and the evolving connection between economic growth and 
debt--both public and private. Each of these transformations leads us 
to a more secure and prosperous future, but each transformation has 
also brought disruption, uncertainty, and job loss.
  Government must embrace these transformations but must ensure that 
every worker has an economic security platform from which to weather 
the changes. Health care, a secure pension, and lifetime education. To 
provide the last plank of that platform, to enable workers to move 
securely from job to job, Senator Moynihan and I today introduce the 
Reemployment Act on behalf of the President. The Reemployment Act will 
give every individual worker a new kind of security in the work force--
a security that is rooted in skills, and in the lifelong opportunity to 
upgrade those skills. Lifelong education allows us to face all the 
transformations in our economy, whatever the cause, with confidence.
  Without question, American workers do not believe the current system 
provides real security, and they are right. There are too many 
restrictions, too much confusion, and too few opportunities. Workers 
face a bureaucracy overwhelmed by paperwork requirements to classify 
workers into those who lost their jobs to defense cuts, imports, or for 
some other reason. The bureaucracy is so busy classifying workers and 
meeting the paperwork demands of all the disparate programs that they 
cannot respond to real needs. With the Reemployment Act, we will 
respond immediately when a plant closes, whether the plant is small or 
large, and we will guarantee training for every worker, whether the job 
is lost to technology, trade, corporate mergers, or just the natural 
cycle of creative destruction that makes capitalism work.
  The bill has five parts: Services and training for all dislocated 
workers; income support during training; one-stop career centers; 
national labor market information system; and reinvention labs for job 
training for the economically disadvantaged.
  The first component of the act provides a seamless program for 
reemployment of dislocated workers regardless of the cause of 
dislocation. Currently there are six dislocated worker programs: EDWAA 
[Economic Dislocation and Worker Adjustment Act]; Defense Conversion 
Adjustment; Clean Air Employment Transition Assistance; Defense 
Diversification Program; TAA [Trade Adjustment Assistance]; and NAFTA 
Transitional Adjustment Assistance. Six different programs that should 
provide security to dislocated workers. Six distinct programs that are 
currently unable to adequately serve the displaced worker population. 
The Reemployment Act of 1994 will consolidate these programs to provide 
greater outreach, individualized services, comprehensive reemployment 
services, and above all, quality training. This ambitious consolidated 
program, which will hold training providers accountable for results, 
draws largely on the lessons of State-level experiments, notably the 
Workforce Development Partnership Act in my own State of New Jersey.
  The second part of the bill provides income support for all 
dislocated workers who are in training. The promise of a consolidated 
training program is empty if workers cannot take advantage of it. 
Today, many workers do not get the training they need because they 
cannot afford to spend a year doing nothing but going to school. They 
need the training, the training is available, but they need to work, at 
any job they can get. Many dislocated workers are forced to take a job 
that pays much less than they were earning, and much less than they 
have the potential to earn with just some training on specific skills, 
such as moving from operating a lathe to operating a computer-assisted 
machine tool. To ensure that the potential of these workers is not 
wasted, successful programs use income support during training, along 
the lines of Trade Adjustment Assistance. This legislation ensures 
income support for anyone who has been working for three years, and 
aims to provide it if possible for any one who has been working for 1-3 
years.
  Trade Adjustment Assistance has been a model program in helping 
workers deal with just one of the economic transformations that has 
been putting jobs at risk. The Reemployment Act consolidates TAA, but 
it does it in the right way, by ensuring that anyone who would have 
been eligible for TAA, even if they hadn't been working for three 
years, will receive everything they would have received under TAA--
training and income support. There have been some criticisms of TAA, 
particularly because of the number of workers who are permitted by 
waiver to receive income support without enrolling in training, but 
this legislation closes that loophole while broadening the reach of 
income support. I have one caveat about the administration's bill: Last 
year we enacted a special TAA program for workers dislocated as a 
result of NAFTA production shifts. While I believe that program should 
be consolidated along with the other five, I hope that NAFTA-dislocated 
workers have the same protection as TAA-eligible workers, even if they 
do not have 3 years on the job.

  One-stop career centers, established by the third title of this bill, 
will provide information on employment opportunities, education and 
training information, and services for anyone who needs help getting a 
job will be under one roof. Although there are still some serious 
questions to be worked out about the role of workforce investment 
boards and other agencies, one-stop career centers have the potential 
to transform through competition the cold and aloof bureaucracy that is 
most workers' first encounter with Government services for dislocated 
workers. Title IV establishes a national labor market information 
system that will provide timely, accurate, up-to-date information on 
available employment opportunities. Finally, the bill also provides for 
reinvention labs for job training for the economically disadvantaged.
  Together these five components--services and training for all 
dislocated workers; income support during training; one-stop career 
centers; national labor market information system; and reinvention labs 
for job training for the economically disadvantaged--will help to 
ensure that the 2.2 million full-time workers whose jobs are lost each 
year get back into the work force quickly, without losing income, and 
with higher skills and productivity.
  Lifetime education must mean more than just the training programs 
that are available through these services. It has to mean that anyone, 
at any age, can get whatever they need to move to the higher level. 
Three years ago, I proposed self-reliance loans as a way for anyone to 
get an education and repay a percentage of the income they will gain 
from that education. I am pleased that this legislation builds on the 
idea of income-contingent loans to serve those who want more 
traditional education, or who have not been in the work force for 1 
year.
  We cannot survive with 40 percent of Americans with high wages, 40 
percent with low wages, and 20 percent unemployable. The only sure way 
that America will provide its workers more jobs and higher wages is if 
they have higher skills. And the more American workers who have 
superior talents, the higher our productivity will be, and the faster 
the economy will grow. I believe this legislation will provide that 
economic security platform.
 Mr. DODD. Mr. President, it gives me great pleasure to add my 
brief remarks upon the introduction of President Clinton's new job 
retraining initiative: The Reemployment Act of 1994.
  I want to commend the President and Labor Secretary Robert Reich for 
their efforts on this proposal. Clearly we must rethink the way we 
serve dislocated workers, since the world has changed and good jobs are 
disappearing--not temporarily, but permanently. I am an original 
cosponsor of this measure. Although I view it only as a starting point, 
I believe it is a healthy first step toward addressing our structural 
unemployment problems.
  I understand that the administration has relied on some outstanding 
models for the one-stop center concept, including one in Hamden, CT. 
This particular center happens to be working very well, and I am 
pleased that Secretary Reich was able to pay it a visit earlier this 
year.
  However, let's not kid ourselves, Mr. President--the real issue is 
jobs. No matter how comprehensive our retraining programs are, they 
cannot succeed without real job growth.
  In my own State of Connecticut, we have lost thousands of defense-
related jobs--not hundreds, thousands. These are jobs that are not 
coming back. It seems to me that in cases such as these, with massive 
dislocations, the question is not about the quality of the job search 
or choosing the right training opportunity. In Connecticut, there 
simply aren't thousands of jobs in other fields waiting for them out 
there.
  In this current round of layoffs, the workers are older--in their 
40's and 50's--with 10 or 20 years on the job.
  I recognize that in other parts of the country, the economy is 
improving, with new jobs being added. And I want to make it clear that 
I believe we ought to be doing all that we can to see to it that 
workers who are seeking help with job searches and retraining are 
getting the assistance that they need. But I also believe it would be a 
grave mistake to abandon what must be our primary mission--to stimulate 
job creation.
  When I talk to people in Connecticut who are out of work, and I 
mention retraining, they frankly get angry with me.
  Clearly, the Federal Government cannot supply all the jobs that are 
needed. We need to focus on developing a partnership with the private 
sector; for example, by helping to direct capital into job-starved 
areas. We know that there is capital out there, but it still is not 
reaching a large segment of small business, where most of the job 
growth in the past few years has occurred.
  Unfortunately, past administrations put little faith in job 
retraining, insisting instead that job creation alone would ensure that 
all who wanted to work, could work. Well, I happen to agree with you, 
Secretary Reich, that without the necessary skills, many workers will 
continue to be shut out from good, high-paying jobs. But I would hate 
to see the pendulum swing too far the other way: By assuming that if we 
ready our work force for a new generation of jobs, those jobs will 
automatically appear on cue.
  I think we simply must concentrate on both job retraining and job 
creation. The two should complement each other.
  Mr. President, I know that the President and Secretary Reich are as 
committed to job growth as I am. And I want to reiterate my belief that 
we need to give workers the tools necessary to cope with the dynamic 
labor markets of the 21st century. I look forward to working with the 
administration on this most difficult and important challenge of 
adequately preparing our work force and seeing to it that the jobs will 
be there.
  I thank you, Mr. President, for this opportunity to add my thoughts 
on this critically important issue.
                                 ______

      By Mr. JOHNSTON (for himself, Mr. Moynihan, Mr. Breaux, Mr. Pell, 
        Mr. Stevens, Mr. Thurmond, Mr. Warner, Mr. Gorton, Mr. Shelby, 
        Mr. Hollings, Mr. DeConcini, Mr. Bond, Mr. Conrad, and Mr. 
        Reid):
  S. 1952. A bill to authorize the minting of coins to commemorate the 
175th anniversary of the founding of the U.S. Botanic Garden; to the 
Committee on Banking, Housing, and Urban Affairs.


           u.s. botanic garden commemorative coin act of 1995

 Mr. JOHNSTON. Mr. President, one of Washington, DC's most 
historic institutions is poised to celebrate an important milestone. In 
1995, the U.S. Botanic Garden will mark 175 years of fulfilling George 
Washington's vision of a botanic garden at the seat of Government.
  The U.S. Botanic Garden is this country's oldest continuously 
operating botanic garden with a history almost as old as our Nation 
itself. Established in 1820, it is a valuable resource and a living 
library of permanent, international collections of tropical, 
subtropical, and desert plants. Its purpose as an educational display 
garden is to inform and educate visitors about the importance, and 
often irreplaceable value, of plants to the well-being of humankind and 
to the fragile environments that support all life.
  The programs provided by the garden include opening its doors free of 
charge to thousands of visitors from all over the world 365 days a 
year, hosting group tours, and sponsoring horticultural, botanical, and 
environmental classes at no charge.

  In recognition and celebration of this significant milestone in the 
life of our Capitol's closest neighbor on The Mall, several of my 
colleagues and I are proud to introduce legislation to authorize the 
minting of coins to commemorate the 175th Anniversary of the U.S. 
Botanic Garden. Proceeds from the sale of these coins will be paid to 
the National Fund for the U.S. Botanic Garden for the purpose of 
building the new National Garden at the U.S. Botanic Garden.
  The Architect of the Capitol, under the supervision of the 
congressional Joint Committee on the Library, has been authorized by 
legislation passed by the Congress in 1988 to design and construct the 
National Garden. Under a contract with the National Fund for the U.S. 
Botanic Garden, the Architect has designated the fund, a charitable 
(501)(c)(3) organization, as the primary means for soliciting private 
contributions for that purpose.
  The new National Garden will be a premier showcase for unusual, 
useful and ornamental plants that grow well in the Mid-Atlantic region. 
It will be built on a 3-acre site immediately adjacent to the Botanic 
Garden Conservatory, located on The Mall between Maryland and 
Independence Avenues. The three major features of the National Garden--
the Environmental Learning Center, the Rose Garden, and the Water 
Garden--will provide a hands-on, living laboratory and a beautiful 
place to exhibit our national flower, the rose.

  The National Garden will expand the U.S. Botanic Garden's ability to 
address the public's concern for the environment. It will examine, in 
formal and informal settings, natural habitats, and the 
interrelationships between plants, humankind, and nature. Through its 
collections, exhibits, displays, and educational programs, it will 
communicate a benevolent attitude toward nature and will illuminate for 
the visitor the ecological and environmental responsibilities of 
individuals and society. It will be equipped to serve all people, 
including those who are physically challenged.
  Visitors will leave the National Garden with a heightened sense of 
stewardship and an understanding of their role and responsibility to 
preserve and protect for future generations. The National Garden will 
commemorate the bicentennial of the U.S. Congress and will be dedicated 
in 1995 in conjunction with the U.S. Botanic Garden's 175th 
anniversary.
  Sales of this commemorative coin will be an essential part of a 
national, broad-based effort to raise the funds necessary to build the 
National Garden and ensure that the dream becomes reality. The coin 
presents an opportunity to invest in the future of the Botanic Garden 
and enhance George Washington's vision of the Botanic Garden as a place 
where people of all ages from every corner of the world can come to 
study, be inspired and enjoy. I urge my colleagues to support this 
important legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1952

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``United States Botanic Garden 
     Commemorative Coin Act of 1995''.

     SEC. 2. COIN SPECIFICATIONS.

       (a) One-Dollar Silver Coins.--
       (1) Issuance.--The Secretary of the Treasury (hereafter in 
     this Act referred to as the ``Secretary'') shall issue not 
     more than 500,000 $1 coins, which shall weigh 26.73 grams, 
     have a diameter of 1.500 inches, and contain 90 percent 
     silver and 10 percent copper.
       (2) Design.--The design of the coins issued under this Act 
     shall be a rose, the national floral emblem, and a frontal 
     view of the French facade of the United States Botanic 
     Garden. On each coin there shall be a designation of the 
     value of the coin, an inscription of the year ``1995'', and 
     inscriptions of the words ``Liberty'', ``In God We Trust'', 
     ``United States of America'', and ``E Pluribus Unum''.
       (b) Legal Tender.--The coins issued under this Act shall be 
     legal tender, as provided in section 5103 of title 31, United 
     States Code.

     SEC. 3. SOURCES OF BULLION.

       The Secretary shall obtain silver for the coins minted 
     under this Act only from stockpiles established under the 
     Strategic and Critical Materials Stock Piling Act.

     SEC. 4. SELECTION OF DESIGN.

       The design for the coins authorized by this Act shall be 
     selected by the Secretary after consultation with the 
     National Fund for the United States Botanic Garden and the 
     Commission of Fine Arts. As required by section 5135 of title 
     31, United States Code, the design shall also be reviewed by 
     the Citizens Commemorative Coin Advisory Committee.

     SEC. 5. ISSUANCE OF COINS.

       (a) Quality of Coins.--Coins minted under this Act may be 
     issued in uncirculated and proof qualities.
       (b) Mint Facility.--Not more than 1 facility of the United 
     States Mint may be used to strike any particular quality of 
     the coins minted under this Act.
       (c) Period of Issuance.--The Secretary may issue coins 
     minted under this Act during the period beginning on January 
     1, 1995, and ending on December 31, 1995.

     SEC. 6. SALE OF COINS.

       (a) Sale Price.--The coins authorized under this Act shall 
     be sold by the Secretary at a price equal to the sum of the 
     face value of the coins, the surcharge provided in subsection 
     (d) with respect to such coins, and the cost of designing and 
     issuing the coins (including labor, materials, dies, use of 
     machinery, overhead expenses, marketing, and shipping).
       (b) Bulk Sales.--The Secretary shall make bulk sales 
     available at a reasonable discount.
       (c) Prepaid Orders.--The Secretary shall accept prepaid 
     orders for the coins authorized under this Act prior to the 
     issuance of such coins. Sales under this subsection shall be 
     at a reasonable discount.
       (d) Surcharge Required.--All sales shall include a 
     surcharge of $10 per coin.

     SEC. 7. GENERAL WAIVER OF PROCUREMENT REGULATIONS.

       No provision of law governing procurement or public 
     contracts shall be applicable to the procurement of goods or 
     services necessary for carrying out the provisions of this 
     Act. Nothing in this section shall relieve any person 
     entering into a contract under the authority of this Act from 
     complying with any law relating to equal employment 
     opportunity.

     SEC. 8. DISTRIBUTION OF SURCHARGES.

       All surcharges received by the Secretary from the sale of 
     coins issued under this Act shall be promptly paid by the 
     Secretary to the National Fund for the United States Botanic 
     Garden.

     SEC. 9. AUDITS.

       The Comptroller General shall have the right to examine 
     such books, records, documents, and other data of the 
     National Fund for the United States Botanic Garden as may be 
     related to the expenditures of amounts paid under section 
     8.
                                 ______

      By Mr. EXON:
  S.J. Res. 173. A joint resolution proposing an amendment to the 
Constitution relating to the election of the President and the Vice 
President of the United States; to the Committee on the Judiciary.


               Electoral College Constitutional Amendment

  Mr. EXON. Mr. President, I am reintroducing my proposed 
constitutional amendment to eliminate the electoral college. I strongly 
believe in the principal of one person, one vote. Under the current 
system, the 11 most populous States could theoretically pick the 
President, even if the losing Presidential candidate won the popular 
vote by a wide margin. In the lull between Presidential elections, this 
is an ideal time to consider this change.
  Mr. President, I am pleased to offer again this amendment to the 
Constitution of the United States to eliminate the electoral college, 
to permit the director election of the Presidential ticket and to 
assure that the American President has the support of the majority of 
those who vote.
  Mr. President, I simply reference the situation that confronted us 
that all too quickly is forgotten about 18 months ago during the 
Presidential elections of 1992. You will remember at that time there 
was great concern in the country and great concern in the Congress 
about the fact that we had three prominent candidates for President of 
the United States. There were all kinds of concerns and discussions 
about different scenarios that might come to pass very easily and, 
therefore, the fact that no candidate would receive a sufficient number 
of electoral votes and the election of a President would be thrown into 
the House of Representatives.
  It seems to me, Mr. President, therefore, that I would emphasize once 
again this is indeed time for a change.
  I have offered this legislation in each Congress since 1988 and 
supported a similar bill offered by former Senator Birch Bayh of 
Indiana in 1979.
  It is time to do away with the electoral college and make the votes 
of every citizen count. The electoral college is an anachronism, a 
relic, an antique, not appropriate for a democracy over two centuries 
old. The United States is now mature enough to elect its own President.
  The American people also agree. Over the years, public opinion has 
consistently favored the direct election of the President.
  The electoral college is an anti-democratic institution. With its 
winner-take-all tradition, votes for opposing candidates in each State 
are essentially eliminated from consideration.
  Mr. President, it is a winner-take-all tradition because there is 
nothing to legally bind electors to vote any particular way. The 
electoral college could disregard the popular vote entirely and vote as 
they please.
  Several times in American history, including in the 1988 election, 
one or two so-called faithless electors voted for candidates of their 
own choosing. In a close three-way race a coalition of faithless 
electors could create a great deal of mischief.
  While an occasional faithless elector will not threaten the outcome 
of an election, three times in our Nation's history, Presidents were 
elected without a popular mandate.
  The 1992 election was almost a classic case in point. When H. Ross 
Perot was a strong candidate, there was a real possibility that the 
election would be thrown into the House of Representatives and Senate. 
My colleagues may remember the fall of 1992 when the news media was in 
a frenzy and House Members were being asked constantly for whom they 
would pledge their votes if the election should be thrown into that 
Chamber.

  This would be the most disruptive situation. An election would be 
thrown into the House of Representatives and the Senate when no 
candidate receives an electoral college majority. The House would pick 
the President from among the top 3 candidates, voting as 50 State 
delegations. The Senate would pick the Vice President from the top two 
candidates with each Senator having a single vote. Not only could the 
will of the people be thwarted, but the President and Vice President 
could be mixed and matched among the top three parties.
  If the 1992 election had been thrown to the House of Representatives, 
a President Clinton could have been required to serve for 4 years with 
a Vice President Quayle or Stockdale.
  Mr. President, the people should pick their President, not the 
electoral college or Congress. Yet, as recently as 1992, this type of 
chaos was a threat. The consequences for a future President, and the 
American people, would be hard to comprehend. But we know one thing--
this situation must be avoided.
  The electoral college is an institution which in theory could crush 
the will of the people. A Presidential ticket only needs to win the 11 
largest States, even by the very narrowest margins, and lose all other 
States even by significant margins to be elected; regardless of the 
total popular vote.
  The last Presidential election is a dramatic case in point of why a 
change is necessary. Although we averted the House selecting the 
President and Vice President, we elected a President and Vice President 
with less than a majority of the popular vote. That is not majority 
rule. Fundamental to a democracy, the electoral college system must go. 
I reintroduce this legislation as I have in the past because my concern 
about the present obvious faulted system of the electoral college. It 
is based on a strong belief in the principle of one person-one vote in 
the selection of our President.
  The proposed constitutional amendment I introduce today eliminates 
the electoral college and allows the people to choose their President. 
Under this proposal, if no Presidential ticket should receive at least 
50 percent of the popular vote and the majority of the vote in at least 
one-third of the States, a run-off election between the two highest 
vote-getters would be held.
  This system will guarantee that the will of the people will prevail 
but at the same time will protect the Nation against the regional 
factionalism feared by our Founding Fathers.
  I do not represent this proposed legislation to be the one and only 
way to bring more democracy to a Presidential election. The 1992 
Presidential campaign brought the electoral college to the attention of 
many Americans for the very first time. I want to continue this 
national examination of our electoral process.
  I am especially delighted that the Nebraska State Legislature led by 
Lincoln Senator Dianna Schimek reexamined the Presidential electoral 
process and enacted a reform which allocates electors on a proportional 
basis. The Nebraska system, like Maine, awards electors for each 
congressional district carried by a Presidential ticket and the winner 
of the State receives two bonus electors. While the new system in 
Nebraska did not change the outcome of the 1992 election, the system is 
inherently more democratic than the winner-take-all approach.
  The Nebraska-Maine approach is a significant improvement in the 
current system. In my view a more democratic approach would be the 
change I recommend today.
  Our Nation's constitutional history is one of granting increasing 
democratic power to the people. The Nation has never been satisfied 
with the democratic status quo. The direct election of the President 
simply continues America's long march to improve and strengthen her 
democracy.
  I look forward to a continued national discussion and debate on the 
electoral college. I ask my colleagues to give this proposed 
constitutional amendment serious consideration.
  Mr. President, I ask unanimous consent that the text of this proposed 
constitutional amendment be printed in the Record.
  There being no objection, the joint resolution was ordered to be 
printed in the Record, as follows:

                             S.J. Res. 173

       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled, That the 
     following article is proposed as an amendment to the 
     Constitution of the United States, which shall be valid to 
     all intents and purposes as part of the Constitution when 
     ratified by the legislatures of three-fourths of the several 
     States within seven years from the date of its submission by 
     the Congress:

                                Article

       ``Section 1. The people of the several States and the 
     District constituting the seat of government of the United 
     States shall elect the President and Vice President. Each 
     elector shall cast a single vote for two persons who shall 
     have consented to the joining of their names as candidates 
     for the offices of President and Vice President.
       ``Section 2. The electors of President and Vice President 
     in each State shall have the qualifications requisite for 
     electors of the most numerous branch of the State 
     legislature, except that for the electors or President and 
     Vice President, any State may prescribe by law less 
     restrictive residence qualifications and for electors of 
     President and Vice President the Congress may by law 
     establish uniform resident qualification.
       ``Section 3. The persons joined as candidates for President 
     and Vice President having the greatest number of votes shall 
     be elected President and Vice President, if such number be at 
     least 50 per centum of the whole number of votes cast and 
     such number be derived from a majority of the number of votes 
     cast in each State compromising at least one-third of the 
     several States. If, after any such election, none of the 
     persons joined as candidates for President and Vice President 
     is elected pursuant to the preceding sentence, a runoff 
     election shall be held within sixty days in which the choice 
     of President and Vice President shall be made from the two 
     pairs of persons joined as candidates for President and Vice 
     President receiving the greatest number of votes in such 
     runoff election shall be elected President and Vice 
     President.
       ``Section 4. The times, places, and manner of holding such 
     elections and entitlement to inclusion on the ballot shall be 
     prescribed by law in each State; but the Congress may by law 
     make or alter such regulations. The days for such elections 
     shall be determined by Congress and shall be uniform 
     throughout the United States. The Congress shall prescribe by 
     law the times, places, and manner in which the results of 
     such elections shall be ascertained and declared. No such 
     election, other than a runoff election, shall be held later 
     than the first Tuesday after the first Monday in November, 
     and the results thereof shall be declared no later than 
     thirty days after the date which the election occurs.
       ``Section 5. The Congress may by law provide for the case 
     of the death, inability, or withdrawal of any candidate for 
     President or Vice President before a President and Vice 
     President have been elected, and for the case of the death of 
     either the President-elect or the Vice President-elect.
                                 ______

      By Mr. BIDEN (for himself, Mr. Hatch, Mr. Craig, Mr. Domenici, 
        Mr. Pryor, Mr. Wofford, Mr. Graham, Mr. Bradley, Mr. 
        Lautenberg, Mr. Mack and Mr. Robb):
  S.J. Res. 174. A joint resolution designating April 24 through April 
30, 1994 as ``National Crime Victims' Rights Week''; to the Committee 
on the Judiciary.


                  NATIONAL CRIME VICTIMS' RIGHTS WEEK

  Mr. BIDEN. Mr. President, I rise today with my colleague Senator 
Hatch to introduce a joint resolution designating the week beginning 
April 25, 1994, as ``National Crime Victims' Rights Week.''
  Every 22 minutes, an American is murdered. Every minute four women 
are battered, one woman is raped, six children are abused, and one 
person is robbed. There is no safe haven: We are not wholly safe on our 
streets or in our neighborhoods; our children are at risk in schools 
and on campuses; and even in what should be a sanctuary--the home--
millions of Americans are attacked.
  Behind each of the faceless statistics is a human face. These victims 
often suffer devastating psychological, physical, and financial 
hardships. They need and deserve quality care. They need and deserve 
services and support programs to help them recover from their 
tragedies.
  Over 10,000 public and private agencies and organizations in the 
United States are dedicated to lessening the suffering of victims. Yet 
often, these victim assistance advocates--who work tirelessly on behalf 
of our Nation's victims--are not given proper recognition. Although 
they often go unthanked, they are not unappreciated. These people 
deserve our respect and encouragement for their valiant efforts.
  This resolution pays tribute to the many men and women who give so 
much of their lives to help put back the lives of this Nation's crime 
victims.
  Last year, Congress passed this resolution in recognition of victims 
and those who champion their rights with strong bipartisan support. I 
look forward to the same support this year. I ask all of my colleagues 
to join me in supporting this resolution.
  Mr. President, I ask for unanimous consent that the full text of the 
resolution be printed in the Record.
  There being no objection, the joint resolution was ordered to be 
printed in the Record, as follows:

                             S.J. Res. 174

       Whereas public opinion polls clearly indicate that crime 
     and violence is the number one concern among all U.S. 
     citizens;
       Whereas 6,400,000 violent crimes are committed each year in 
     the United States;
       Whereas every minute in the United States, four women are 
     battered, one woman is raped, six children are abused, and 
     one person is robbed;
       Whereas there is a crucial need to provide crime victims 
     with quality programs and services to help them recover from 
     the devastating psychological, physical, emotional and 
     financial hardships resulting from their victimization;
       Whereas there are 10,000 public and private agencies and 
     organizations in the United States that are dedicated to 
     improving the plight of crime victims;
       Whereas victims play an indispensable role in bringing 
     offenders to justice and thus preventing further violence;
       Whereas law abiding citizens are deserving of rights, 
     resources, restoration and rehabilitation;
       Whereas victim service providers, counselors and advocates 
     should enjoy full support from all public and private 
     institutions, entities and individuals in their efforts to 
     render critical assistance to those whom our Nation failed to 
     protect;
       Whereas the Nation's victims' rights movement and allied 
     professions deserve recognition for their tireless efforts on 
     behalf of victims of crime and their struggle to reduce 
     senseless violence in America; and
       Whereas whether measured in dollars, domestic tranquillity, 
     dread or death, crime represents the greatest threat to 
     Americans and America. Therefore, be it
       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled, That April 
     24-30, 1994, be designated as ``National Crime Victims' 
     Rights Week,'' and the President is authorized and requested 
     to issue a proclamation calling upon the people of the United 
     States to observe the week with appropriate ceremonies and 
     activities.

                          ____________________