[Congressional Record Volume 141, Number 94 (Friday, June 9, 1995)]
[Senate]
[Pages S8098-S8119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. BRYAN (for himself and Mr. Reid):
S. 903. A bill to designate the Nellis Federal Hospital in Las Vegas,
NV, as the ``Mike O'Callaghan Military Hospital,'' and for other
purposes; to the Committee on Armed Services.
the mike o'callaghan military hospital designation act of 1995
Mr. BRYAN. Mr. President, it is my privilege today to introduce
legislation to designate the Nellis Federal Hospital in Las Vegas, NV,
as the ``Mike O'Callaghan Military Hospital.''
The Nellis Federal Hospital is a newly constructed joint venture
hospital facility in Las Vegas, NV. The facility is operated jointly by
the U.S. Department of Defense through the Nellis Air Force Base, and
the U.S. Department of Veterans Affairs through the Las Vegas Veterans
Affairs Outpatient Clinic.
This medical facility is the culmination of years of cooperative
efforts between the Departments of Defense and Veterans Affairs to
address the health care needs of both active duty military at Nellis
Air Force Base and their families, and the rapidly increasing southern
Nevada veterans population.
The Federal hospital, formally dedicated on July 8, 1994, was opened
to patients on August 1, 1994. It was my pleasure to attend the July
dedication of this remarkable joint facility. For Nellis Air Force
Base, the Federal hospital provides base personnel access to a new
medical facility to provide quality health care. For southern Nevada
veterans, the Federal hospital represents their first permanent
veterans inpatient hospital in the Las Vegas area. For many of these
veterans, hospital care can now be provided in State, rather than in a
different State hundreds of miles away from home.
This hospital will serve many Nevadans--those who, while serving at
the Nellis Air Force Base, call Nevada their home temporarily, and
those who, as retired veterans, call Nevada their home permanently.
It is, therefore, only appropriate to name this vital health care
facility after a man who has served his country militarily with honor
in three branches of the armed services; the Air Force, the Army, and
the Marine Corps. A man who, as disabled veteran, is reminded every day
of the sacrifice of that service. A man who has spent his entire career
working tirelessly to make life a little bit better for all Nevadans
It is, therefore, truly a privilege for me to introduce this
legislation today to name the Federal hospital for Mike O'Callaghan.
Mike O'Callaghan and I both have had the honor of serving the people
of Nevada as their Governor. In fact, Governor O'Callaghan is one of
only five two-term Governors in Nevada's history.
As Nevada's Governor, Mike O'Callaghan was a hands on worker. The
lights in the Governor's office were always the first ones on, and the
ones out when he was the occupant. He was always the man in charge, and
he always got the job done for Nevadans.
Governor O'Callaghan is also a most compassionate, caring and
sensitive human being, both in his instincts and in his actions. While
Governor, he always worked for the underdog. For people who could not
speak for themselves, Governor O'Callaghan was their voice. He made
sure they were heard.
One of the highlights of his terms as Governor was passage of
Nevada's fair housing law to ensure all Nevadans equal access to a home
of their own. He understood how very important it is for people to have
a place of their own to call home wherever they choose to live.
Governor O'Callaghan's military career began early. At 16 years of
age, he enlisted in the U.S. Marine Corps to serve during the period
ending in World War II.
During the Korean conflict, he served with both the Air Force and the
Army. While in Korea, he was wounded in combat, forcing amputation of
his left leg. His unflinching courage was recognized through the
awarding of the Silver Star, the Bronze Star with Valor Device, and the
Purple Heart.
Following his Army service in Korea, Governor O'Callaghan spent the
next years as a teacher and journalist. He earned a master's degree at
the University of Idaho. He then taught economics, government, and
history in Henderson, NV, for several years. One of his students, my
colleague, Senator Harry Reid, took those classes to heart.
In 1963, Governor O'Callaghan began his public service career when he
became the first director of Nevada's Health and Welfare Department. He
also served almost 2 years as a project manager for the Job Corps
Conservation Centers.
His professional career continued in 1969 when Governor O'Callaghan
founded a research-planning firm in Carson City, NV. He then started
his political career entering the race
for Nevada's Governor as a Democrat in 1970. He was reelected in 1974,
winning by an overwhelming majority. He was also honored that year by
Time Magazine as one of the Nation's top 200 promising young Americans.
Instead of running for a third gubernatorial term, he retired from
elected office in 1978.
Today, Governor O'Callaghan is currently the chairman and executive
editor of the Las Vegas Sun. He continues to write provocative
editorials on Nevada and national political issues, continuing always
to speak for those without a voice.
He is also publisher of the Henderson Home News and the Boulder City
News. He travels every year to Israel, where as a private citizen, he
gives his time to help work on military tank maintenance.
His interest in the concerns of those currently serving in the
military and in those who have already served their country has not
waned. In recognition of that continued commitment, former Governor
O'Callaghan was presented the Air Force Exceptional Service Award in
1982.
We in Nevada are proud to have the Nellis Federal Hospital in Las
Vegas. To name the hospital after Mike O'Callaghan would commemorate
not only his valuable personal contributions to Nevada, but would honor
all those who answer the call of duty to their country.
______
By Mr. LUGAR:
S. 904. A bill to provide flexibility to States to administer and
control the cost of the food stamp and child nutrition programs, and
for other purposes; to the Committee on Agriculture, Nutrition, and
Forestry.
THE NUTRITION ASSISTANCE REFORM ACT OF 1995
Mr. LUGAR. Mr. President, most Americans now recognize the
need to reform our welfare system. U.S. welfare policy has encouraged
dependency, [[Page S8099]] has failed to encourage work effort, and has
contributed to runaway entitlement spending.
These failures do not mean that we have been wrong to assist needy
Americans. A just society makes provision for its less fortunate
members.
But what is the best way to do that? What policies offer the best
prospect of helping the needy to become independent? What are the
unintended consequences of the modern welfare state? What is the cost
of the culture of dependency?
These are questions with which we must grapple. Most accounts of the
welfare reform debate focus solely on the prospect that someone's
benefits will be reduced.
That is the wrong question. The right question is: What will happen
if we refuse to reform welfare because we are afraid of the political
consequences? How many more generations of dependency will we foster?
How many people will fail to break out of the welfare trap who
otherwise might have gotten jobs, or started businesses, or sent
children to college?
Is compassion always and everywhere defined by spending more money?
Our society's compassion must now be reflected in tough choices, not
blank checks. It is easy to write repetitive stories about cuts in
benefits. More understanding is required to note the effect of changing
incentives, encouraging work effort, and insisting on independence.
I chair the Committee on Agriculture, Nutrition, and Forestry, which
has jurisdiction over the Food Stamp program and child nutrition
spending. We are not the primary committee of jurisdiction on welfare
matters, but the programs we oversee are a vital part of the Nation's
social safety net.
Today, I am introducing legislation that represents my best effort at
a consensus bill that reflects the range of views on our committees.
That range is a broad one, comprising Senators who favor block grants
and those who do not. Some committee members on both sides of the aisle
and prepared for sharp reductions in nutrition spending, while other
are not.
I was prepared to act boldly. I agreed with many of our Nation's
Governors that the States deserve the change to try new
approaches to delivering nutrition assistance.
The legislation I introduce today will not convert the Food Stamp
Program to block grants. I made this decision consciously because I
believe committee consensus is preferable to contention if the latter
would divert us from the real issues.
Welfare reform should not, at the end of the day, be measured by
whether or not it converts all programs to block grants. Block grants
are a means, not an end.
Instead, I ask my colleagues to measure welfare reform proposals by
these tests: Do they give States more freedom to try new approaches? Do
they encourage work and responsibility? And do they reduce the runaway
expenditure of taxpayer funds?
I hope Senators will agree that the bill I introduce today does all
these things. First, it gives the States wider latitude to reform the
Food Stamp Program. The bill allows States to try a variety of
approaches to delivering benefits, structuring incentives and
encouraging independence. Many current Federal requirements are ended,
and States are granted more authority to modify the program in light of
their unique circumstances. Under this bill, States could restrict
eligibility for benefits, create work supplementation initiatives where
food stamp benefits would be used to leverage job incentives, and
undertake other reforms.
Second, the bill promotes work and responsibility. The bill will
enforce strict work requirements, allow States to crack down on food
stamp recipients who fail to pay child support or cooperate with the
child support enforcement system, and put real sanctions on recipients
who violate work requirements or voluntarily quit a job.
Finally, this legislation will reduce Federal spending. It is
designed to achieve approximately the level of savings in the budget
resolution approved by the Senate. This legislation will pay food stamp
benefits based on 100 percent of the low-cost thrifty food plan,
instead of the present 103 percent. It will also modify income
deductions and asset tests used in calculating eligibility and benefit
levels. The bill achieves savings in other nutrition programs while
retaining the Federal responsibility for these programs. For example,
the legislation will reduce subsidies for meals served in day care
homes in upper- and middle-income areas.
Mr. President, a just nation does not cast its poor out on the
street. But neither does it absolve them of personal responsibility. As
we reform welfare programs, we must count the cost to both society and
welfare recipients of retaining the old, failed system. That cost is
too high. Instead, we must try new approaches and provide new
incentives. Some may fail. But the greater failure of the old order is
manifest.
We owe it to every American to try new approaches and question old
ways. We must enter the new century as a nation whose watchword is
independence, not dependency.
Mr. President, I ask unanimous consent that the test of the bill I
introduce, along with a summary of its provisions, be printed in the
Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 904
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 ``Nutrition
Assistance Reform Act of 1995''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--FOOD STAMP PROGRAM
Sec. 101. Certification period.
Sec. 102. Treatment of minors.
Sec. 103. Optional additional criteria for separate household
determinations.
Sec. 104. Adjustment of thrifty food plan.
Sec. 105. Definition of homeless individual.
Sec. 106. Earnings of students.
Sec. 107. Energy assistance.
Sec. 108. Deductions from income.
Sec. 109. Amount of vehicle asset limitation.
Sec. 110. Benefits for aliens.
Sec. 111. Disqualification.
Sec. 112. Caretaker exemption.
Sec. 113. Employment and training.
Sec. 114. Comparable treatment for disqualification.
Sec. 115. Cooperation with child support agencies.
Sec. 116. Disqualification for child support arrears.
Sec. 117. Permanent disqualification for participating in 2 or more
States.
Sec. 118. Work requirement.
Sec. 119. Electronic benefit transfers.
Sec. 120. Minimum benefit.
Sec. 121. Benefits on recertification.
Sec. 122. Optional combined allotment for expedited households.
Sec. 123. Failure to comply with other welfare and public assistance
programs.
Sec. 124. Allotments for households residing in institutions.
Sec. 125. Operation of food stamp offices.
Sec. 126. State employee and training standards.
Sec. 127. Expedited coupon service.
Sec. 128. Fair hearings.
Sec. 129. Income and eligibility verification system.
Sec. 130. Collection of overissuances.
Sec. 131. Termination of Federal match for optional information
activities.
Sec. 132. Standards for administration.
Sec. 133. Work supplementation or support program.
Sec. 134. Waiver authority.
Sec. 135. Authorization of pilot projects.
Sec. 136. Response to waivers.
Sec. 137. Private sector employment initiatives.
Sec. 138. Reauthorization of appropriations.
Sec. 139. Reauthorization of Puerto Rico block grant.
Sec. 140. Simplified food stamp program.
Sec. 141. Effective date.
TITLE II--CHILD NUTRITION PROGRAMS
Subtitle A--Reimbursement Rates
Sec. 201. Termination of additional payment for lunches served in high
free and reduced price participation schools.
Sec. 202. Value of food assistance.
Sec. 203. Lunches, breakfasts, and supplements.
Sec. 204. Summer food service program for children.
Sec. 205. Special milk program.
Sec. 206. Free and reduced price breakfasts.
Sec. 207. Conforming reimbursement for paid breakfasts and lunches.
Subtitle B--Grant Programs
Sec. 211. School breakfast startup grants.
Sec. 212. Nutrition education and training programs.
Sec. 213. Effective date.
Subtitle C--Other Amendments
Sec. 221. Free and reduced price policy statement. [[Page S8100]]
Sec. 222. Summer food service program for children.
Sec. 223. Child and adult care food program.
Sec. 224. Reducing required reports to State agencies and schools.
TITLE III--REAUTHORIZATION
Sec. 301. Commodity distribution program; commodity supplemental food
programs.
Sec. 302. Emergency food assistance program.
Sec. 303. Soup kitchens program.
Sec. 304. National commodity processing.
TITLE I--FOOD STAMP PROGRAM
SEC. 101. CERTIFICATION PERIOD.
Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C.
2012(c)) is amended by striking ``Except as provided'' and
all that follows and inserting the following: ``The
certification period shall not exceed 12 months, except that
the certification period may be up to 24 months if all adult
household members are elderly, disabled, or primarily self-
employed. A State agency shall have at least 1 personal
contact with each certified household every 12 months.''.
SEC. 102. TREATMENT OF MINORS.
The second sentence of section 3(i) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(i)) is amended by striking ``(who are
not themselves parents living with their children or married
and living with their spouses)''.
SEC. 103. OPTIONAL ADDITIONAL CRITERIA FOR SEPARATE HOUSEHOLD
DETERMINATIONS.
(a) In General.--Section 3(i) of the Food Stamp Act of 1977
(7 U.S.C. 2012(i)) is amended by inserting after the second
sentence the following: ``Notwithstanding the preceding
sentences, a State may establish criteria that prescribe when
individuals who live together, and who would be allowed to
participate as separate households under the preceding
sentences, shall be considered a single household, without
regard to the purchase of food and the preparation of
meals.''.
(b) Conforming amendment.--The second sentence of section
5(a) of the Act (7 U.S.C. 2014(a)) is amended by striking
``the third sentence of section 3(i)'' and inserting ``the
fourth sentence of section 3(i)''.
SEC. 104. ADJUSTMENT OF THRIFTY FOOD PLAN.
The second sentence of section 3(o) of the Food Stamp Act
of 1977 (7 U.S.C. 2012(o)) is amended--
(1) by striking ``shall (1) make'' and inserting the
following: ``shall--
``(1) make'';
(2) by striking ``scale, (2) make'' and inserting ``scale;
``(2) make'';
(3) by striking ``Alaska, (3) make'' and inserting the
following: ``Alaska;
``(3) make''; and
(4) by striking ``Columbia, (4) through'' and all that
follows through the end of the subsection and inserting the
following: ``Columbia; and
``(4) on October 1, 1995, and each October 1 thereafter,
adjust the cost of the diet to reflect the cost of the diet,
in the preceding June, and round the result to the nearest
lower dollar increment for each household size, except that
on October 1, 1995, the Secretary may not reduce the cost of
the diet in effect on September 30, 1995.''.
SEC. 105. DEFINITION OF HOMELESS INDIVIDUAL.
Section 3(s)(2)(C) of the Food Stamp Act of 1977 (7 U.S.C.
2012(s)(2)(C)) is amended by inserting ``for not more than 90
days'' after ``temporary accommodation''.
SEC. 106. EARNINGS OF STUDENTS.
Section 5(d)(7) of the Food Stamp Act of 1977 (7 U.S.C.
2014(d)(7)) is amended by striking ``21'' and inserting
``19''.
SEC. 107. ENERGY ASSISTANCE.
(a) In General.--Section 5(d) of the Food Stamp Act of 1977
(7 U.S.C. 2014(d)) is amended--
(1) by striking paragraph (11); and
(2) by redesignating paragraphs (12) through (16) as
paragraphs (11) through (15), respectively.
(b) Conforming Amendments.--
(1) Section 5 of the Act (7 U.S.C. 2014) is amended--
(A) in subsection (k)(1)(A), by striking ``plan for aid to
families with dependent children approved'' and inserting
``program funded''; and
(B) in subsection (m), by striking ``(d)(13)'' and
inserting ``(d)(12)''.
(2) Section 2605(f) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8624(f)) is amended--
(A) by striking ``(f)(1) Notwithstanding'' and inserting
``(f) Notwithstanding'';
(B) in paragraph (1), by striking ``food stamps,''; and
(C) by striking paragraph (2).
SEC. 108. DEDUCTIONS FROM INCOME.
(a) In General.--Section 5 of the Food Stamp Act of 1977 (7
U.S.C. 2014) is amended by striking subsection (e) and
inserting the following:
``(e) Deductions From Income.--
``(1) Standard deduction.--
``(A) In general.--The Secretary shall allow a standard
deduction for each household in the 48 contiguous States and
the District of Columbia, Alaska, Hawaii, Guam, and the
Virgin Islands of the United States of--
``(i) for fiscal year 1995, $134, $229, $189, $269, and
$118, respectively;
``(ii) for fiscal year 1996, $132, $225, $186, $265, and
$116, respectively;
``(iii) for fiscal year 1997, $130, $222, $183, $261, and
$114, respectively;
``(iv) for fiscal year 1998, $128, $218, $180, $257, and
$112, respectively;
``(v) for fiscal year 1999, $126, $215, $177, $252, and
$111, respectively; and
``(vi) for fiscal year 2000, $124, $211, $174, $248, and
$109, respectively.
``(B) Adjustment for inflation.--On October 1, 2000, and
each October 1 thereafter, the Secretary shall adjust the
standard deduction to the nearest lower dollar increment to
reflect changes in the Consumer Price Index for all urban
consumers published by the Bureau of Labor Statistics, for
items other than food, for the 12-month period ending the
preceding June 30.
``(2) Earned income deduction.--
``(A) In general.--Except as provided in subparagraph (B),
a household with earned income shall be allowed a deduction
of 20 percent of all earned income (other than income
excluded by subsection (d)), to compensate for taxes, other
mandatory deductions from salary, and work expenses.
``(B) Exception.--The deduction described in subparagraph
(A) shall not be allowed with respect to determining an
overissuance due to the failure of a household to report
earned income in a timely manner.
``(3) Dependent care deduction.--
``(A) In general.--A household shall be entitled, with
respect to expenses (other than excluded expenses described
in subparagraph (B)) for dependent care, to a dependent care
deduction, the maximum allowable level of which shall be $200
per month for each dependent child under 2 years of age and
$175 per month for each other dependent, for the actual cost
of payments necessary for the care of a dependent if the care
enables a household member to accept or continue employment,
or training or education that is preparatory for employment.
``(B) Excluded expenses.--The excluded expenses referred to
in subparagraph (A) are--
``(i) expenses paid on behalf of the household by a third
party;
``(ii) amounts made available and excluded for the expenses
referred to in subparagraph (A) under subsection (d)(3); and
``(iii) expenses that are paid under section 6(d)(4).
``(4) Deduction for child support payments.--
``(A) In general.--A household shall be entitled to a
deduction for child support payments made by a household
member to or for an individual who is not a member of the
household if the household member is legally obligated to
make the payments.
``(B) Methods for determining amount.--The Secretary may
prescribe by regulation the methods, including calculation on
a retrospective basis, that a State agency shall use to
determine the amount of the deduction for child support
payments.
``(5) Homeless shelter deduction.--A State agency may
develop a standard homeless shelter deduction, which shall
not exceed $139 per month, for such expenses as may
reasonably be expected to be incurred by households in which
all members are homeless individuals but are not receiving
free shelter throughout the month. A State agency that
develops the deduction may use the deduction in determining
eligibility and allotments for the households, except that
the State agency may prohibit the use of the deduction for
households with extremely low shelter costs.
``(6) Excess medical expense deduction.--
``(A) In general.--A household containing an elderly or
disabled member shall be entitled, with respect to expenses
other than expenses paid on behalf of the household by a
third party, to an excess medical expense deduction for the
portion of the actual costs of allowable medical expenses,
incurred by the elderly or disabled member, exclusive of
special diets, that exceeds $35 per month.
``(B) Method of claiming deduction.--
``(i) In general.--A State agency shall offer an eligible
household under subparagraph (A) a method of claiming a
deduction for recurring medical expenses that are initially
verified under the excess medical expense deduction in lieu
of submitting information or verification on actual expenses
on a monthly basis.
``(ii) Method.--The method described in clause (i) shall--
``(I) be designed to minimize the burden for the eligible
elderly or disabled household member choosing to deduct the
recurrent medical expenses of the member pursuant to the
method;
``(II) rely on reasonable estimates of the expected medical
expenses of the member for the certification period
(including changes that can be reasonably anticipated based
on available information about the medical condition of the
member, public or private medical insurance coverage, and the
current verified medical expenses incurred by the member);
and
``(III) not require further reporting or verification of a
change in medical expenses if such a change has been
anticipated for the certification period.
``(7) Excess shelter expense deduction.--
``(A) In general.--A household shall be entitled, with
respect to expenses other than expenses paid on behalf of the
household by a third party, to an excess shelter expense
deduction to the extent that the monthly amount expended by a
household for shelter exceeds an amount equal to 50 percent
of monthly household income after all other applicable
deductions have been allowed.
``(B) Maximum amount of deduction.-- [[Page S8101]]
``(i) Prior to september 30, 1995.--In the case of a
household that does not contain an elderly or disabled
individual, during the 15-month period ending September 30,
1995, the excess shelter expense deduction shall not exceed--
``(I) in the 48 contiguous States and the District of
Columbia, $231 per month; and
``(II) in Alaska, Hawaii, Guam, and the Virgin Islands of
the United States, $402, $330, $280, and $171 per month,
respectively.
``(ii) After september 30, 1995.--In the case of a
household that does not contain an elderly or disabled
individual, during the 15-month period ending December 31,
1996, the excess shelter expense deduction shall not exceed--
``(I) in the 48 contiguous States and the District of
Columbia, $247 per month; and
``(II) in Alaska, Hawaii, Guam, and the Virgin Islands of
the United States, $429, $353, $300, and $182 per month,
respectively.
``(C) Standard utility allowance.--
``(i) In general.--In computing the excess shelter expense
deduction, a State agency may use a standard utility
allowance in accordance with regulations promulgated by the
Secretary, except that a State agency may use an allowance
that does not fluctuate within a year to reflect seasonal
variations.
``(ii) Restrictions on heating and cooling expenses.--An
allowance for a heating or cooling expense may not be used in
the case of a household that--
``(I) does not incur a heating or cooling expense, as the
case may be;
``(II) does incur a heating or cooling expense but is
located in a public housing unit that has central utility
meters and charges households, with regard to the expense,
only for excess utility costs; or
``(III) shares the expense with, and lives with, another
individual not participating in the food stamp program,
another household participating in the food stamp program, or
both, unless the allowance is prorated between the household
and the other individual, household, or both.
``(iii) Mandatory allowance.--
``(I) In general.--A State agency may make the use of a
standard utility allowance mandatory for all households with
qualifying utility costs if--
``(aa) the State agency has developed 1 or more standards
that include the cost of heating and cooling and 1 or more
standards that do not include the cost of heating and
cooling; and
``(bb) the Secretary finds that the standards will not
result in an increased cost to the Secretary.
``(II) Household election.--A State agency that has not
made the use of a standard utility allowance mandatory under
subclause (I) shall allow a household to switch, at the end
of a certification period, between the standard utility
allowance and a deduction based on the actual utility costs
of the household.
``(iv) Availability of allowance to recipients of energy
assistance.--
``(I) In general.--Subject to subclause (II), if a State
agency elects to use a standard utility allowance that
reflects heating or cooling costs, the standard utility
allowance shall be made available to households receiving a
payment, or on behalf of which a payment is made, under the
Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621
et seq.) or other similar energy assistance program, if the
household still incurs out-of-pocket heating or cooling
expenses in excess of any assistance paid on behalf of the
household to an energy provider.
``(II) Separate allowance.--A State agency may use a
separate standard utility allowance for households on behalf
of which a payment described in subclause (I) is made, but
may not be required to do so.
``(III) States not electing to use separate allowance.--A
State agency that does not elect to use a separate allowance
but makes a single standard utility allowance available to
households incurring heating or cooling expenses (other than
a household described in subclause (I) or (II) of
subparagraph (C)(ii)) may not be required to reduce the
allowance due to the provision (directly or indirectly) of
assistance under the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.).
``(IV) Proration of assistance.--For the purpose of the
food stamp program, assistance provided under the Low-Income
Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.)
shall be considered to be prorated over the entire heating or
cooling season for which the assistance was provided.''.
(b) Conforming Amendment.--Section 11(e)(3) of the Act (7
U.S.C. 2020(e)(3)) is amended by striking ``Under rules
prescribed'' and all that follows through ``verifies higher
expenses''.
SEC. 109. AMOUNT OF VEHICLE ASSET LIMITATION.
The first sentence of section 5(g)(2) of the Food Stamp Act
of 1977 (7 U.S.C. 2014(g)(2)) is amended by striking
``through September 30, 1995'' and all that follows through
``such date and on'' and inserting ``and shall be adjusted on
October 1, 1996, and''.
SEC. 110. BENEFITS FOR ALIENS.
Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C.
2014(i)) is amended--
(1) in the first sentence of paragraph (1)--
(A) by inserting ``or who executed such an affidavit or
similar agreement to enable the individual to lawfully remain
in the United States,'' after ``respect to such
individual,''; and
(B) by striking ``for a period'' and all that follows
through the period at the end and inserting ``until the end
of the period ending on the later of the date agreed to in
the affidavit or agreement or the date that is 5 years after
the date on which the individual was first lawfully admitted
into the United States following the execution of the
affidavit or agreement.''; and
(2) in paragraph (2)--
(A) in subparagraph (C)(i), by striking ``of three years
after entry into the United States'' and inserting
``determined under paragraph (1)''; and
(B) in subparagraph (D), by striking ``of three years after
such alien's entry into the United States'' and inserting
``determined under paragraph (1)''.
SEC. 111. DISQUALIFICATION.
(a) In General.--Section 6(d) of the Food Stamp Act of 1977
(7 U.S.C. 2015(d)) is amended by striking ``(d)(1) Unless
otherwise exempted by the provisions'' and all that follows
through the end of paragraph (1) and inserting the following:
``(d) Conditions of Participation.--
``(1) Work requirements.--
``(A) In general.--No physically and mentally fit
individual over the age of 15 and under the age of 60 shall
be eligible to participate in the food stamp program if the
individual--
``(i) refuses, at the time of application and every 12
months thereafter, to register for employment in a manner
prescribed by the Secretary;
``(ii) refuses without good cause to participate in an
employment and training program under paragraph (4), to the
extent required by the State agency;
``(iii) refuses without good cause to accept an offer of
employment, at a site or plant not subject to a strike or
lockout at the time of the refusal, at a wage not less than
the higher of--
``(I) the applicable Federal or State minimum wage; or
``(II) 80 percent of the wage that would have governed had
the minimum hourly rate under section 6(a)(1) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) been
applicable to the offer of employment;
``(iv) refuses without good cause to provide a State agency
with sufficient information to allow the State agency to
determine the employment status or the job availability of
the individual;
``(v) voluntarily and without good cause--
``(I) quits a job; or
``(II) reduces work effort and, after the reduction, the
individual is working less than 30 hours per week; or
``(vi) fails to comply with section 20.
``(B) Household ineligibility.--If an individual who is the
head of a household becomes ineligible to participate in the
food stamp program under subparagraph (A), the household
shall, at the option of the State agency, become ineligible
to participate in the food stamp program for a period,
determined by the State agency, that does not exceed the
lesser of--
``(i) the duration of the ineligibility of the individual
determined under subparagraph (C); or
``(ii) 180 days.
``(C) Duration of ineligibility.--
``(i) First violation.--The first time that an individual
becomes ineligible to participate in the food stamp program
under subparagraph (A), the individual shall remain
ineligible until the later of--
``(I) the date the individual becomes eligible under
subparagraph (A);
``(II) the date that is 1 month after the date the
individual became ineligible; or
``(III) a date determined by the State agency that is not
later than 3 months after the date the individual became
ineligible.
``(ii) Second violation.--The second time that an
individual becomes ineligible to participate in the food
stamp program under subparagraph (A), the individual shall
remain ineligible until the later of--
``(I) the date the individual becomes eligible under
subparagraph (A);
``(II) the date that is 3 months after the date the
individual became ineligible; or
``(III) a date determined by the State agency that is not
later than 6 months after the date the individual became
ineligible.
``(iii) Third or subsequent violation.--The third or
subsequent time that an individual becomes ineligible to
participate in the food stamp program under subparagraph (A),
the individual shall remain ineligible until the later of--
``(I) the date the individual becomes eligible under
subparagraph (A);
``(II) the date that is 6 months after the date the
individual became ineligible;
``(III) a date determined by the State agency; or
``(IV) at the option of the State agency, permanently.
``(D) Administration.--
``(i) Good cause.--
``(I) Standard.--The Secretary shall determine the meaning
of good cause for the purpose of this paragraph.
``(II) Procedure.--A State agency shall determine the
procedure for determining whether an individual acted with
good cause for the purpose of this paragraph.
``(III) Adequate child care.--In this paragraph, the term
`good cause' includes the lack of adequate child care for a
dependent child under the age of 12.
``(ii) Voluntary quit.--
``(I) Standard.--The Secretary shall determine the meaning
of voluntarily quitting for the purpose of this
paragraph. [[Page S8102]]
``(II) Procedure.--The Secretary shall determine the
procedure for determining whether an individual voluntarily
quit for the purpose of this paragraph.
``(iii) Determination by state agency.--Subject to clauses
(i) and (ii), a State agency shall determine--
``(I) the meaning of any term in subparagraph (A);
``(II) the procedures for determining whether an individual
is in compliance with a requirement under subparagraph (A);
and
``(III) whether an individual is in compliance with a
requirement under subparagraph (A).
``(iv) Strike against the government.--For the purpose of
subparagraph (A)(v), an employee of the Federal Government, a
State, or a political subdivision of a State, who is
dismissed for participating in a strike against the Federal
Government, the State, or the political subdivision of the
State shall be considered to have voluntarily quit without
good cause.
``(v) Selecting a head of household.--
``(I) In general.--For the purpose of this paragraph, the
State agency shall allow the household to select any adult
parent of a child in the household as the head of the
household if all adult household members making application
under the food stamp program agree to the selection.
``(II) Time for making designation.--A household may
designate the head of the household under subclause (I) each
time the household is certified for participation in the food
stamp program, but may not change the designation during a
certification period unless there is a change in the
composition of the household.
``(vi) Change in head of household.--If the head of a
household leaves the household during a period in which the
household is ineligible to participate in the food stamp
program under subparagraph (B)--
``(I) the household shall, if otherwise eligible, become
eligible to participate in the food stamp program; and
``(II) if the head of the household becomes the head of
another household, the household that becomes headed by the
individual shall become ineligible to participate in the food
stamp program for the remaining period of ineligibility.''.
(b) Conforming Amendment.--
(1) The second sentence of section 17(b)(2) of the Act (7
U.S.C. 2026(b)(2)) is amended by striking ``6(d)(1)(i)'' and
inserting ``6(d)(1)(A)(i)''.
(2) Section 20 of the Act (7 U.S.C. 2029) is amended by
striking subsection (f) and inserting the following:
``(f) Disqualification.--An individual or a household may
become ineligible under section 6(d)(1) to participate in the
food stamp program for failing to comply with this
section.''.
SEC. 112. CARETAKER EXEMPTION.
Section 6(d)(2) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(2)) is amended by striking subparagraph (B) and
inserting the following: ``(B) a parent or other member of a
household with responsibility for the care of (i) a dependent
child under the age of 6 or any lower age designated by the
State agency that is not under the age of 1, or (ii) an
incapacitated person;''.
SEC. 113. EMPLOYMENT AND TRAINING.
(a) In General.--Section 6(d)(4) of the Food Stamp Act of
1977 (7 U.S.C. 2015(d)(4)) is amended--
(1) in subparagraph (A)--
(A) by striking ``Not later than April 1, 1987, each'' and
inserting ``Each'';
(B) by striking ``and approved by the Secretary''; and
(C) by striking ``program in gaining skills, training, or
experience'' and inserting ``program, but not a State program
funded under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.), in gaining skills, training, work,
or experience'';
(2) in subparagraph (B)--
(A) in the matter preceding clause (i)--
(i) by inserting ``with terms and conditions set by a State
agency'' after ``means a program''; and
(ii) by striking the colon at the end and inserting the
following: ``, except that the State agency shall retain the
option to apply employment requirements prescribed under this
subparagraph to a program applicant at the time of
application:'';
(B) in clause (i), by striking ``with terms and
conditions'' and all that follows through ``time of
application'';
(C) in clause (iv)--
(i) by striking subclauses (I) and (II); and
(ii) by redesignating subclauses (III) and (IV) as
subclauses (I) and (II), respectively; and
(D) in clause (vii), by striking ``As approved'' and all
that follows through ``other employment'' and inserting
``Other employment'';
(3) in subparagraph (D)--
(A) in clause (i), by striking ``to which the application''
and all that follows through ``30 days or less'';
(B) in clause (ii), by striking ``but with respect'' and
all that follows through ``child care''; and
(C) in clause (iii), by striking ``, on the basis of'' and
all that follows through ``clause (ii)'' and inserting ``the
exemption continues to be valid'';
(4) in subparagraph (E), by striking the third sentence;
(5) in subparagraph (G)--
(A) by striking ``(G)(i) The State'' and inserting ``(G)
The State''; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ``(H)(i) The
Secretary'' and all that follows through ``(ii) Federal
funds'' and inserting ``(H) Federal funds'';
(7) in subparagraph (I)(i)--
(A) in the matter preceding subclause (I), by inserting
``not'' after ``paragraph,''; and
(B) in subclause (II), by striking ``, or was in
operation,'' and all that follows through ``Social Security
Act'' and inserting the following: ``), except that no such
payment or reimbursement shall exceed the applicable local
market rate'';
(8)(A) by striking subparagraphs (K) and (L); and
(B) by redesignating subparagraphs (M) and (N) as
subparagraphs (K) and (L), respectively; and
(9) in subparagraph (K) (as redesignated by paragraph
(8)(B))--
(A) by striking ``(K)(i) The Secretary'' and inserting
``(K) The Secretary''; and
(B) by striking clause (ii).
(b) Funding.--Section 16(h) of the Act (7 U.S.C. 2025(h))
is amended by striking ``(h)(1)(A) The Secretary'' and all
that follows through the end of paragraph (1) and inserting
the following:
``(h) Funding of Employment and Training Programs.--
``(1) In general.--
``(A) Amounts.--To carry out employment and training
programs, the Secretary shall reserve for allocation to State
agencies from funds made available for each fiscal year under
section 18(a)(1) the amount of--
``(i) for fiscal year 1996, $77,000,000;
``(ii) for fiscal year 1997, $80,000,000;
``(iii) for fiscal year 1998, $83,000,000;
``(iv) for fiscal year 1999, $86,000,000; and
``(v) for fiscal year 2000, $89,000,000.
``(B) Allocation.--The Secretary shall allocate the amounts
reserved under subparagraph (A) among the State agencies
using a reasonable formula (as determined by the Secretary)
that gives consideration to the population in each State
affected by section 6(n).
``(C) Reallocation.--
``(i) Notification.--A State agency shall promptly notify
the Secretary if the State agency determines that the State
agency will not expend all of the funds allocated to the
State agency under subparagraph (B).
``(ii) Reallocation.--On notification under clause (i), the
Secretary shall reallocate the funds that the State agency
will not expend as the Secretary considers appropriate and
equitable.
``(D) Minimum allocation.--Notwithstanding subparagraphs
(A) through (C), the Secretary shall ensure that each State
agency operating an employment and training program shall
receive not less than $50,000 in each fiscal year.''.
(c) Reports.--Section 16(h) of the Act (7 U.S.C. 2025(h))
is amended--
(1) in paragraph (5)--
(A) by striking ``(5)(A) The Secretary'' and inserting
``(5) The Secretary''; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (6).
SEC. 114. COMPARABLE TREATMENT FOR DISQUALIFICATION.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7
U.S.C. 2015) is amended by adding at the end the following:
``(i) Comparable Treatment for Disqualification.--
``(1) In general.--If a disqualification is imposed on a
member of a household for failure of that member to perform
an action required under a Federal, State, or local law
relating to welfare or a public assistance program, the State
agency may impose the same disqualification on the member of
the household under the food stamp program.
``(2) Application after disqualification period.--A member
of a household disqualified under paragraph (1) may, after
the disqualification period has expired, apply for benefits
under this Act and shall be treated as a new applicant.''.
(b) State plan provisions.--Section 11(e) of the Act (7
U.S.C. 2020(e)) is amended--
(1) in paragraph (24), by striking ``and'' at the end;
(2) in paragraph (25), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(26) the guidelines the State agency uses in carrying out
section 6(i).''.
(c) Conforming Amendment.--Section 6(d)(2)(A) of the Act (7
U.S.C. 2015(d)(2)(A)) is amended by striking ``that is
comparable to a requirement of paragraph (1)''.
SEC. 115. COOPERATION WITH CHILD SUPPORT AGENCIES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as
amended by section 114) is further amended by adding at the
end the following:
``(j) Custodial Parent's Cooperation With Child Support
Agencies.--
``(1) In general.--At the option of a State agency, subject
to paragraphs (2) and (3), no natural or adoptive parent or
other individual (collectively referred to in this subsection
as `the individual') who is living with and exercising
parental control over a child under the age of 18 who has an
absent parent shall be eligible to participate in the food
stamp program unless the individual cooperates with the State
agency administering the program established under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.)--
``(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
``(B) in obtaining support for-- [[Page S8103]]
``(i) the child; or
``(ii) the individual and the child.
``(2) Good cause for noncooperation.--Paragraph (1) shall
not apply to the individual if good cause is found for
refusing to cooperate, as determined by the State agency in
accordance with standards prescribed by the Secretary in
consultation with the Secretary of Health and Human Services.
The standards shall take into consideration circumstances
under which cooperation may be against the best interests of
the child.
``(3) Fees.--Paragraph (1) shall not require the payment of
a fee or other cost for services provided under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
``(k) Non-Custodial Parent's Cooperation With Child Support
Agencies.--
``(1) In general.--At the option of a State agency, subject
to paragraphs (2) and (3), a putative non-custodial parent of
a child under the age of 18 (referred to in this subsection
as `the individual') shall not be eligible to participate in
the food stamp program if the individual refuses to cooperate
with the State agency administering the program established
under part D of title IV of the Social Security Act (42
U.S.C. 651 et seq.)--
``(A) in establishing the paternity of the child (if the
child is born out of wedlock); and
``(B) in providing support for the child.
``(2) Refusal to cooperate.--
``(A) Guidelines.--The Secretary, in consultation with the
Secretary of Health and Human Services, shall develop
guidelines on what constitutes a refusal to cooperate under
paragraph (1).
``(B) Procedures.--The State agency shall develop
procedures, using guidelines developed under subparagraph
(A), for determining whether an individual is refusing to
cooperate under paragraph (1).
``(3) Fees.--Paragraph (1) shall not require the payment of
a fee or other cost for services provided under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.).
``(4) Privacy.--The State agency shall provide safeguards
to restrict the use of information collected by a State
agency administering the program established under part D of
title IV of the Social Security Act (42 U.S.C. 651 et seq.)
to purposes for which the information is collected.''.
SEC. 116. DISQUALIFICATION FOR CHILD SUPPORT ARREARS.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as
amended by section 115) is further amended by adding at the
end the following:
``(l) Disqualification for Child Support Arrears.--
``(1) In general.--At the option of a State agency, except
as provided in paragraph (2), no individual shall be eligible
to participate in the food stamp program as a member of any
household during any month that the individual is delinquent
in any payment due under a court order for the support of a
child of the individual.
``(2) Exceptions.--Paragraph (1) shall not apply if--
``(A) a court is allowing the individual to delay payment;
or
``(B) the individual is complying with a payment plan
approved by a court or the State agency designated under part
D of title IV of the Social Security Act (42 U.S.C. 651 et
seq.) to provide support for the child of the individual.''.
SEC. 117. PERMANENT DISQUALIFICATION FOR PARTICIPATING IN 2
OR MORE STATES.
Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) (as
amended by section 116) is further amended by adding at the
end the following:
``(m) Permanent Disqualification for Participating in 2 or
More States.--An individual shall be permanently ineligible
to participate in the food stamp program as a member of any
household if the individual is found by a State agency to
have made, or is convicted in Federal or State court of
having made, a fraudulent statement or representation with
respect to the place of residence of the individual in order
to receive benefits simultaneously from 2 or more States
under the food stamp program.''.
SEC. 118. WORK REQUIREMENT.
(a) In General.--Section 6 of the Food Stamp Act of 1977 (7
U.S.C. 2015) (as amended by section 117) is further amended
by adding at the end the following:
``(n) Work Requirement.--
``(1) Definition of work program.--In this subsection, the
term `work program' means--
``(A) a program under the Job Training Partnership Act (29
U.S.C. 1501 et seq.);
``(B) a program under section 236 of the Trade Act of 1974
(19 U.S.C. 2296); or
``(C) a program of employment or training operated or
supervised by a State or political subdivision of a State
that meets standards approved by the Governor of the State,
including a program under section 6(d)(4) other than a job
search program or a job search training program under clause
(i) or (ii) of section 6(d)(4)(B).
``(2) Work requirement.--No individual shall be eligible to
participate in the food stamp program as a member of any
household if, during the preceding 12 months, the individual
received food stamp benefits for not less than 6 months
during which the individual did not--
``(A) work 20 hours or more per week, averaged monthly; or
``(B) participate in and comply with the requirements of a
work program for 20 hours or more per week, as determined by
the State agency.
``(3) Exception.--Paragraph (2) shall not apply to an
individual if the individual is--
``(A) under 18 or over 50 years of age;
``(B) medically certified as physically or mentally unfit
for employment;
``(C) a parent or other member of a household with a
dependent child; or
``(D) otherwise exempt under section 6(d)(2).
``(4) Waiver.--
``(A) In general.--On the request of a State agency, the
Secretary may waive the applicability of paragraph (2) to any
group of individuals in the State if the Secretary makes a
determination that the area in which the individuals reside--
``(i) has an unemployment rate of over 8 percent; or
``(ii) does not have a sufficient number of jobs to provide
employment for the individuals.
``(B) Report.--The Secretary shall report the basis for a
waiver under subparagraph (A) to the Committee on Agriculture
of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.''.
(b) Effective Date.--The amendment made by subsection (a)
shall become effective on July 1, 1996.
SEC. 119. ELECTRONIC BENEFIT TRANSFERS.
Section 7 of the Food Stamp Act of 1977 (7 U.S.C. 2016) is
amended by adding at the end the following:
``(j) Electronic Benefit Transfers.--
``(1) Applicable law.--
``(A) In general.--Disclosures, protections,
responsibilities, and remedies established by the Federal
Reserve Board under section 904 of the Electronic Fund
Transfer Act (15 U.S.C. 1693b) shall not apply to benefits
under this Act delivered through any electronic benefit
transfer system.
``(B) Definition of electronic benefit transfer system.--In
this paragraph, the term `electronic benefit transfer system'
means a system under which a governmental entity distributes
benefits under this Act or other benefits or payments by
establishing accounts to be accessed by recipients of the
benefits electronically, including through the use of an
automated teller machine or an intelligent benefit card.
``(2) Charging for electronic benefit transfer card
replacement.--
``(A) In general.--A State agency may charge an individual
for the cost of replacing a lost or stolen electronic benefit
transfer card.
``(B) Reducing allotment.--A State agency may collect a
charge imposed under subparagraph (A) by reducing the monthly
allotment of the household of which the individual is a
member.''.
SEC. 120. MINIMUM BENEFIT.
The proviso in section 8(a) of the Food Stamp Act of 1977
(7 U.S.C. 2017(a)) is amended by striking ``, and shall be
adjusted'' and all that follows through ``$5''.
SEC. 121. BENEFITS ON RECERTIFICATION.
Section 8(c)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)(2)(B)) is amended by striking ``of more than one
month''.
SEC. 122. OPTIONAL COMBINED ALLOTMENT FOR EXPEDITED
HOUSEHOLDS.
Section 8(c) of the Food Stamp Act of 1977 (7 U.S.C.
2017(c)) is amended by striking paragraph (3) and inserting
the following:
``(3) Optional combined allotment for expedited
households.--A State agency may provide to an eligible
household applying after the 15th day of a month, in lieu of
the initial allotment of the household and the regular
allotment of the household for the following month, an
allotment that is the aggregate of the initial allotment and
the first regular allotment, which shall be provided in
accordance with section 11(e)(3) in the case of a household
that is not entitled to expedited service or in accordance
with paragraphs (3) and (9) of section 11(e) in the case of a
household that is entitled to expedited service.''.
SEC. 123. FAILURE TO COMPLY WITH OTHER WELFARE AND PUBLIC
ASSISTANCE PROGRAMS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is
amended by striking subsection (d) and inserting the
following:
``(d) Reduction of Public Assistance Benefits.--
``(1) In general.--If the benefits of a household are
reduced under a Federal, State, or local law relating to
welfare or a public assistance program for the failure to
perform an action required under the law or program, for the
duration of the reduction--
``(A) the household may not receive an increased allotment
as the result of a decrease in the income of the household to
the extent that the decrease is the result of the reduction;
and
``(B) the State agency may reduce the allotment of the
household by not more than 25 percent.
``(2) Optional method.--In carrying out paragraph (1), a
State agency may consider, for the duration of a reduction
referred to under paragraph (1), the benefits of the
household before the reduction as income of the household
after the reduction.''.
SEC. 124. ALLOTMENTS FOR HOUSEHOLDS RESIDING IN INSTITUTIONS.
Section 8 of the Food Stamp Act of 1977 (7 U.S.C. 2017) is
amended by adding at the end the following:
``(f) Allotments for Households Residing in Institutions.--
[[Page S8104]]
``(1) In general.--In the case of an individual who resides
in a homeless shelter, or in an institution or center for the
purpose of a drug or alcoholic treatment program, described
in the last sentence of section 3(i), a State agency may
provide an allotment for the individual to--
``(A) the institution as an authorized representative for
the individual for a period that is less than 1 month; and
``(B) the individual, if the individual leaves the
institution.
``(2) Direct payment.--A State agency may require an
individual referred to in paragraph (1) to designate the
shelter, institution, or center in which the individual
resides as the authorized representative of the individual
for the purpose of receiving an allotment.''.
SEC. 125. OPERATION OF FOOD STAMP OFFICES.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is
amended--
(1) in subsection (e)--
(A) by striking paragraph (2) and inserting the following:
``(2)(A) that the State agency shall establish procedures
governing the operation of food stamp offices that the State
agency determines best serve households in the State,
including households with special needs, such as households
with elderly or disabled members, households in rural areas
with low-income members, homeless individuals, households
residing on reservations, and households in which a
substantial number of members speak a language other than
English.
``(B) In carrying out subparagraph (A), a State agency--
``(i) shall provide timely, accurate, and fair service to
applicants for, and participants in, the food stamp program;
``(ii) shall permit an applicant household to apply to
participate in the program on the same day that the household
first contacts a food stamp office in person during office
hours;
``(iii) shall consider an application filed on the date the
applicant submits an application that contains the name,
address, and signature of the applicant; and
``(iv) may establish operating procedures that vary for
local food stamp offices to reflect regional and local
differences within the State;'';
(B) in paragraph (3)--
(i) by striking ``shall--'' and all that follows through
``provide each'' and inserting ``shall provide each''; and
(ii) by striking ``(B) assist'' and all that follows
through ``representative of the State agency.'';
(C) by striking paragraph (14) and inserting the following:
``(14) the standards and procedures used by the State
agency under section 6(d)(1)(D) to determine whether an
individual is eligible to participate under section
6(d)(1)(A);''; and
(D) by striking paragraph (25) and inserting the following:
``(25) a description of the work supplementation or support
program, if any, carried out by the State agency under
section 16(b).''; and
(2) in subsection (i)--
(A) by striking ``(i) Notwithstanding'' and all that
follows through ``(2)'' and inserting the following:
``(i) Application and Denial Procedures.--
``(1) Application procedures.--Notwithstanding any other
provision of law,''; and
(B) by striking ``; (3) households'' and all that follows
through ``title IV of the Social Security Act. No'' and
inserting a period and the following:
``(2) Denial and termination.--Other than in a case of
disqualification as a penalty for failure to comply with a
public assistance program rule or regulation, no''.
SEC. 126. STATE EMPLOYEE AND TRAINING STANDARDS.
Section 11(e)(6) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(6)) is amended--
(1) by striking ``(A)''; and
(2) by striking subparagraphs (B) through (E).
SEC. 127. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(9)) is amended--
(1) in subparagraph (A)--
(A) by striking ``five days'' and inserting ``7 business
days''; and
(B) by inserting ``and'' at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as subparagraph (B);
and
(4) in subparagraph (B) (as redesignated by paragraph (3)),
by striking ``, (B), or (C)''.
SEC. 128. FAIR HEARINGS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020) is
amended by adding at the end the following:
``(p) Withdrawing Fair Hearing Requests.--A household may
withdraw, orally or in writing, a request by the household
for a fair hearing under subsection (e)(10). If the
withdrawal request is an oral request, the State agency shall
provide a written notice to the household confirming the
request and providing the household with an opportunity to
request a hearing.''.
SEC. 129. INCOME AND ELIGIBILITY VERIFICATION SYSTEM.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020)
(as amended by section 128) is further amended by adding at
the end the following:
``(q) State Verification Option.--Notwithstanding any other
provision of law, a State agency shall not be required to use
an income and eligibility verification system established
under section 1137 of the Social Security Act (42 U.S.C.
1320b-7).''.
SEC. 130. COLLECTION OF OVERISSUANCES.
(a) In General.--Section 13 of the Food Stamp Act of 1977
(7 U.S.C. 2022) is amended--
(1) by striking subsection (b) and inserting the following:
``(b) Collection of Overissuances.--
``(1) In general.--Except as otherwise provided in this
subsection, a State agency shall collect any overissuance of
coupons issued to a household by--
``(A) reducing the allotment of the household;
``(B) withholding unemployment compensation from a member
of the household under subsection (c);
``(C) recovering from Federal pay or a Federal income tax
refund under subsection (d); or
``(D) any other means.
``(2) Cost effectiveness.--Paragraph (1) shall not apply if
the State agency demonstrates to the satisfaction of the
Secretary that all of the means referred to in paragraph (1)
are not cost effective.
``(3) Hardships.--A State agency may not use an allotment
reduction under paragraph (1)(A) as a means collecting an
overissuance from a household if the allotment reduction
would cause a hardship on the household, as determined by the
State agency.
``(4) Maximum reduction absent fraud.--If a household
received an overissuance of coupons without any member of the
household being found ineligible to participate in the
program under section 6(b)(1) and a State agency elects to
reduce the allotment of the household under paragraph (1)(A),
the State agency shall reduce the monthly allotment of the
household under paragraph (1)(A) by the greater of--
``(A) 10 percent of the monthly allotment of the household;
or
``(B) $10.
``(5) Procedures.--A State agency shall collect an
overissuance of coupons issued to a household under paragraph
(1) in accordance with requirements established by the State
agency for providing notice, electing a means of payment, and
establishing a time schedule for payment.''; and
(2) in subsection (d)--
(A) by striking ``as determined under subsection (b) and
except for claims arising from an error of the State
agency,'' and inserting ``, as determined under subsection
(b)(1),''; and
(B) by inserting before the period at the end the
following: ``or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code''.
(b) Conforming Amendment.--Section 11(e)(8) of the Act (7
U.S.C. 2020(e)(8)) is amended--
(1) by striking ``and excluding claims'' and all that
follows through ``such section,''; and
(2) by inserting before the semicolon at the end the
following: ``or a Federal income tax refund as authorized by
section 3720A of title 31, United States Code''.
SEC. 131. TERMINATION OF FEDERAL MATCH FOR OPTIONAL
INFORMATION ACTIVITIES.
(a) In General.--Section 16(a) of the Food Stamp Act of
1977 (7 U.S.C. 2025(a)) is amended--
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) through (8) as
paragraphs (4) through (7), respectively.
(b) Conforming Amendment.--Section 16(g) of the Act (7
U.S.C. 2025(g)) is amended by striking ``an amount equal to''
and all that follows through ``1991, of'' and inserting ``the
amount provided under subsection (a)(5) for''.
SEC. 132. STANDARDS FOR ADMINISTRATION.
(a) In General.--Section 16 of the Food Stamp Act of 1977
(7 U.S.C. 2025) is amended by striking subsection (b).
(b) Conforming Amendments.--
(1) The first sentence of section 11(g) of the Act (7
U.S.C. 2020(g)) is amended by striking ``the Secretary's
standards for the efficient and effective administration of
the program established under section 16(b)(1) or''.
(2) Section 16(c)(1)(B) of the Act (7 U.S.C. 2025(c)(1)(B))
is amended by striking ``pursuant to subsection (b)''.
SEC. 133. WORK SUPPLEMENTATION OR SUPPORT PROGRAM.
Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025)
(as amended by section 132(a)) is further amended by
inserting after subsection (a) the following:
``(b) Work Supplementation or Support Program.--
``(1) Definition.--In this subsection, the term `work
supplementation or support program' means a program in which,
as determined by the Secretary, public assistance (including
any benefits provided under a program established by the
State and the food stamp program) is provided to an employer
to be used for hiring and employing a new employee who is a
public assistance recipient.
``(2) Program.--A State agency may elect to use amounts
equal to the allotment that would otherwise be allotted to a
household under the food stamp program, but for the operation
of this subsection, for the purpose of subsidizing or
supporting jobs under a work supplementation or support
program established by the State.
``(3) Procedure.--If a State agency makes an election under
paragraph (2) and identifies each household that participates
in the [[Page S8105]] food stamp program that contains an
individual who is participating in the work supplementation
or support program--
``(A) the Secretary shall pay to the State agency an amount
equal to the value of the allotment that the household would
be eligible to receive but for the operation of this
subsection;
``(B) the State agency shall expend the amount paid under
subparagraph (A) in accordance with the work supplementation
or support program in lieu of providing the allotment that
the household would receive but for the operation of this
subsection;
``(C) for purposes of--
``(i) sections 5 and 8(a), the amount received under this
subsection shall be excluded from household income and
resources; and
``(ii) section 8(b), the amount received under this
subsection shall be considered to be the value of an
allotment provided to the household; and
``(D) the household shall not receive an allotment from the
State agency for the period during which the member continues
to participate in the work supplementation or support
program.
``(4) Other work requirements.--No individual shall be
excused, by reason of the fact that a State has a work
supplementation or support program, from any work requirement
under section 6(d), except during the periods in which the
individual is employed under the work supplementation or
support program.
``(5) Maximum length of participation.--A work
supplementation or support program may not allow the
participation of any individual for longer than 6 months,
unless the Secretary approves a longer period.''.
SEC. 134. WAIVER AUTHORITY.
Section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)(A)) is amended--
(1) by striking ``benefits to eligible households,
including'' and inserting the following: ``benefits to
eligible households. The Secretary may waive the requirements
of this Act to the extent necessary to conduct a pilot or
experimental project, including a project designed to test
innovative welfare reform, promote work, and allow conformity
with other Federal, State, and local government assistance
programs, except that a project involving the payment of
benefits in the form of cash shall maintain the average value
of allotments for affected households as a group. Pilot or
experimental projects may include''; and
(2) by striking ``The Secretary may waive'' and all that
follows through ``sections 5 and 8 of this Act.''.
SEC. 135. AUTHORIZATION OF PILOT PROJECTS.
The last sentence of section 17(b)(1)(A) of the Food Stamp
Act of 1977 (7 U.S.C. 2026(b)(1)(A)) is amended by striking
``1995'' and inserting ``2000''.
SEC. 136. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)) is amended by adding at the end the following:
``(C) Response to waivers.--
``(i) Response.--Not later than 60 days after the date of
receiving a request for a waiver under subparagraph (A), the
Secretary shall provide a response that--
``(I) approves the waiver request;
``(II) denies the waiver request and explains any
modification needed for approval of the waiver request;
``(III) denies the waiver request and explains the grounds
for the denial; or
``(IV) requests clarification of the waiver request.
``(ii) Failure to respond.--If the Secretary does not
provide a response under clause (i) not later than 60 days
after receiving a request for a waiver, the waiver shall be
considered approved.
``(iii) Notice of denial.--On denial of a waiver request
under clause (i)(III), the Secretary shall provide a copy of
the waiver request and the grounds for the denial to the
Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate.''.
SEC. 137. PRIVATE SECTOR EMPLOYMENT INITIATIVES.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is
amended by adding at the end the following:
``(m) Private Sector Employment Initiatives.--
``(1) Election to participate.--
``(A) In general.--Subject to the other provisions of this
subsection, a State may elect to carry out a private sector
employment initiative program under this subsection.
``(B) Requirement.--A State shall be eligible to carry out
a private sector employment initiative under this subsection
only if not less than 50 percent of the households that
received food stamp benefits during the summer of 1993 also
received benefits under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) during the summer of 1993.
``(2) Procedure.--A State that has elected to carry out a
private sector employment initiative under paragraph (1) may
use amounts equal to the food stamp allotments that would
otherwise be allotted to a household under the food stamp
program, but for the operation of this subsection, to provide
cash benefits in lieu of the food stamp allotments to the
household if the household is eligible under paragraph (3).
``(3) Eligibility.--A household shall be eligible to
receive cash benefits under paragraph (2) if an adult member
of the household--
``(A) has worked in unsubsidized employment in the private
sector for not less than the preceding 90 days;
``(B) has earned not less than $350 per month from the
employer referred to in subparagraph (A) for not less than
the preceding 90 days;
``(C)(i) is eligible to receive benefits under a State
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.); or
``(ii) was eligible to receive benefits under a State
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) at the time the member
first received cash benefits under this subsection and is no
longer eligible for the State program because of earned
income;
``(D) is continuing to earn not less than $350 per month
from the employment referred to in subparagraph (A); and
``(E) elects to receive cash benefits in lieu of food stamp
benefits under this subsection.
``(4) Evaluation.--A State that operates a program under
this subsection for 2 years shall provide to the Secretary a
written evaluation of the impact of cash assistance under
this subsection. The State agency shall determine the content
of the evaluation.''.
SEC. 138. REAUTHORIZATION OF APPROPRIATIONS.
The first sentence of section 18(a)(1) of the Food Stamp
Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking
``1995'' and inserting ``2000''.
SEC. 139. REAUTHORIZATION OF PUERTO RICO BLOCK GRANT.
The first sentence of section 19(a)(1)(A) of the Food Stamp
Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by striking
``$974,000,000'' and all that follows through ``fiscal year
1995'' and inserting the following: ``$1,143,000,000 for each
of fiscal years 1995 and 1996, $1,182,000,000 for fiscal year
1997, $1,223,000,000 for fiscal year 1998, $1,266,000,000 for
fiscal year 1999, and $1,310,000,000 for fiscal year 2000''
SEC. 140. SIMPLIFIED FOOD STAMP PROGRAM.
(a) In General.--The Food Stamp Act of 1977 (7 U.S.C. 2011
et seq.) is amended by adding at the end the following:
``SEC. 24. SIMPLIFIED FOOD STAMP PROGRAM.
``(a) Election.--Subject to subsection (c), a State agency
may elect to carry out a Simplified Food Stamp Program
(referred to in this section as a `Program') under this
section.
``(b) Operation of Program.--
``(1) In general.--If a State agency elects to carry out a
Program, within the State or a political subdivision of the
State--
``(A) a household in which all members receive assistance
under a State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) shall
automatically be eligible to participate in the Program; and
``(B) subject to subsection (e), benefits under the Program
shall be determined under rules and procedures established by
the State under--
``(i) a State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.);
``(ii) the food stamp program; or
``(iii) a combination of a State program funded under part
A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) and the food stamp program.
``(2) Shelter standard.--The State agency may elect to
apply 1 shelter standard to a household that receives a
housing subsidy and another shelter standard to a household
that does not receive the subsidy.
``(c) Approval of Program.--
``(1) State plan.--A State agency may not operate a Program
unless the Secretary approves a State plan for the operation
of the Program under paragraph (2).
``(2) Approval of plan.--
``(A) In general.--The Secretary shall approve any State
plan to carry out a Program if the Secretary determines that
the plan--
``(i) complies with this section; and
``(ii) would not increase Federal costs incurred under this
Act.
``(B) Definition of federal costs.--In this section, the
term `Federal costs' does not include any Federal costs
incurred under section 17.
``(d) Increased Federal Costs.--
``(1) Determination.--
``(A) In general.--The Secretary shall determine whether a
Program being carried out by a State agency is increasing
Federal costs under this Act.
``(B) No excluded households.--In making a determination
under subparagraph (A), the Secretary shall not require the
State agency to collect or report any information on
households not included in the Program.
``(C) Alternative accounting periods.--The Secretary may
approve the request of a State agency to apply alternative
accounting periods to determine if Federal costs do not
exceed the Federal costs had the State agency not elected to
carry out the Program.
``(2) Notification.--If the Secretary determines that the
Program has increased Federal costs under this Act for any
fiscal year, the Secretary shall notify the State agency not
later than January 1 of the immediately succeeding fiscal
year.
``(3) Return of funds.--
``(A) In general.--If the Secretary determines that the
Program has increased Federal costs under this Act for a 2-
year period, including a fiscal year for which notice was
[[Page S8106]] given under paragraph (2) and an immediately
succeeding fiscal year, the State agency shall pay to the
Treasury of the United States the amount of the increased
costs.
``(B) Enforcement.--If the State agency does not pay an
amount due under subparagraph (A) on a date that is not later
than 90 days after the date of the determination, the
Secretary shall reduce amounts otherwise due to the State
agency for administrative costs under section 16(a).
``(e) Rules and Procedures.--
``(1) In general.--Except as provided by paragraph (2), a
State may apply--
``(A) the rules and procedures established by the State
under--
``(i) the State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.); or
``(ii) the food stamp program; or
``(B) the rules and procedures of 1 of the programs to
certain matters and the rules and procedures of the other
program to all remaining matters.
``(2) Standardized deductions.--The State may standardize
the deductions provided under section 5(e). In developing the
standardized deduction, the State shall give consideration to
the work expenses, dependent care costs, and shelter costs of
participating households.
``(3) Requirements.--In operating a Program, the State
shall comply with--
``(A) subsections (a) through (g) of section 7;
``(B) section 8(a), except that the income of a household
may be determined under a State program funded under part A
of title IV of the Social Security Act (42 U.S.C. 601 et
seq.);
``(C) subsections (b) and (d) of section 8;
``(D) subsections (a), (c), (d), and (n) of section 11;
``(E) paragraph (3) of section 11(e), to the extent that
the paragraph requires that an eligible household be
certified and receive an allotment for the period of
application not later than 30 days after filing an
application;
``(F) paragraphs (8), (9), (12), (17), (19), (21), and (27)
of section 11(e);
``(G) section 11(e)(10) or a comparable requirement
established by the State under a State program funded under
part A of title IV of the Social Security Act (42 U.S.C. 601
et seq.); and
``(H) section 16.''.
(b) State Plan Provisions.--Section 11(e) of the Act (7
U.S.C. 2020(e)) (as amended by section 114(b)) is further
amended--
(1) in paragraph (25), by striking ``and'' at the end;
(2) in paragraph (26), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(27) the plans of the State agency for operating, at the
election of the State, a program under section 24,
including--
``(A) the rules and procedures to be followed by the State
to determine food stamp benefits;
``(B) how the State will address the needs of households
that experience high shelter costs in relation to the incomes
of the households; and
``(C) a description of the method by which the State will
carry out a quality control system under section 16(c).''.
(c) Conforming Amendments.--
(1) Section 8 of the Act (7 U.S.C. 2017) (as amended by
section 124) is further amended--
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as subsection (e).
(2) Section 17 of the Act (7 U.S.C. 2026) (as amended by
section 137) is further amended--
(A) by striking subsection (i); and
(B) by redesignating subsections (j) through (m) as
subsections (i) through (l), respectively.
SEC. 141. EFFECTIVE DATE.
Except as otherwise provided in this title, this title and
the amendments made by this title shall become effective on
October 1, 1995.
TITLE II--CHILD NUTRITION PROGRAMS
Subtitle A--Reimbursement Rates
SEC. 201. TERMINATION OF ADDITIONAL PAYMENT FOR LUNCHES
SERVED IN HIGH FREE AND REDUCED PRICE
PARTICIPATION SCHOOLS.
(a) In General.--Section 4(b)(2) of the National School
Lunch Act (42 U.S.C. 1753(b)(2)) is amended by striking
``except that'' and all that follows through ``2 cents
more''.
(b) Effective Date.--The amendment made by subsection (a)
shall become effective on July 1, 1996.
SEC. 202. VALUE OF FOOD ASSISTANCE.
(a) In General.--Section 6(e)(1) of the National School
Lunch Act (42 U.S.C. 1755(e)(1)) is amended by striking
subparagraph (B) and inserting the following:
``(B) Adjustments.--
``(i) In general.--The value of food assistance for each
meal shall be adjusted each July 1 by the annual percentage
change in a 3-month average value of the Price Index for
Foods Used in Schools and Institutions for March, April, and
May each year.
``(ii) Adjustments.--Except as otherwise provided in this
subparagraph, in the case of each school year, the Secretary
shall--
``(I) base the adjustment made under clause (i) on the
amount of the unrounded adjustment for the preceding school
year;
``(II) adjust the resulting amount in accordance with
clause (i); and
``(III) round the result to the nearest lower cent
increment.
``(iii) Adjustment on january 1, 1996.--On January 1, 1996,
the Secretary shall round the value of food assistance
referred to in clause (i) to the nearest lower cent
increment.
``(iv) Adjustment for 1996-97 school year.--In the case of
the school year beginning July 1, 1996, the value of food
assistance shall be the same as the value of food assistance
for the school year beginning July 1, 1995, rounded to the
nearest lower cent increment.
``(v) Adjustment for 1997-98 school year.--In the case of
the school year beginning July 1, 1997, the Secretary shall--
``(I) base the adjustment made under clause (i) on the
amount of the unrounded adjustment for the value of food
assistance for the school year beginning July 1, 1995;
``(II) adjust the resulting amount to reflect the annual
percentage change in a 3-month average value of the Price
Index for Foods Used in Schools and Institutions for March,
April, and May for the most recent 12-month period for which
the data are available; and
``(III) round the result to the nearest lower cent
increment.''.
(b) Effective Date.--The amendments made by subsection (a)
shall become effective on January 1, 1996.
SEC. 203. LUNCHES, BREAKFASTS, AND SUPPLEMENTS.
(a) In General.--Section 11(a)(3)(B) of the National School
Lunch Act (42 U.S.C. 1759a(a)(3)(B)) is amended--
(1) by designating the second and third sentences as
subparagraphs (C) and (D), respectively; and
(2) by striking subparagraph (D) (as so designated) and
inserting the following:
``(D) Rounding.--Except as otherwise provided in this
paragraph, in the case of each 12-month period, the Secretary
shall--
``(i) base the adjustment made under this paragraph on the
amount of the unrounded adjustment for the preceding 12-month
period;
``(ii) adjust the resulting amount in accordance with
subparagraph (C); and
``(iii) round the result to the nearest lower cent
increment.
``(E) Adjustment on january 1, 1996.--On January 1, 1996,
the Secretary shall round the rates and factor referred to in
subparagraph (A) to the nearest lower cent increment.
``(F) Adjustment for 24-month period beginning july 1,
1996.--In the case of the 24-month period beginning July 1,
1996, the national average payment rates for paid lunches,
paid breakfasts, and paid supplements shall be the same as
the national average payment rate for paid lunches, paid
breakfasts, and paid supplements, respectively, for the 12-
month period beginning July 1, 1995, rounded to the nearest
lower cent increment.
``(G) Adjustment for 12-month period beginning july 1,
1998.--In the case of the 12-month period beginning July 1,
1998, the Secretary shall--
``(i) base the adjustments made under this paragraph for--
``(I) paid lunches and paid breakfasts on the amount of the
unrounded adjustment for paid lunches for the 12-month period
beginning July 1, 1995; and
``(II) paid supplements on the amount of the unrounded
adjustment for paid supplements for the 12-month period
beginning July 1, 1995;
``(ii) adjust each resulting amount in accordance with
subparagraph (C); and
``(iii) round each result to the nearest lower cent
increment.''.
(b) Effective Date.--The amendments made by subsection (a)
shall become effective on January 1, 1996.
SEC. 204. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) In General.--Section 13(b) of the National School Lunch
Act (42 U.S.C. 1761(b)) is amended--
(1) by striking ``(b)(1)'' and all that follows through the
end of paragraph (1) and inserting the following:
``(b) Service Institutions.--
``(1) Payments.--
``(A) In general.--Except as otherwise provided in this
paragraph, payments to service institutions shall equal the
full cost of food service operations (which cost shall
include the costs of obtaining, preparing, and serving food,
but shall not include administrative costs).
``(B) Maximum amounts.--Subject to subparagraph (C),
payments to any institution under subparagraph (A) shall not
exceed--
``(i) $2 for each lunch and supper served;
``(ii) $1.20 for each breakfast served; and
``(iii) 50 cents for each meal supplement served.
``(C) Adjustments.--Amounts specified in subparagraph (B)
shall be adjusted each January 1 to the nearest lower cent
increment in accordance with the changes for the 12-month
period ending the preceding November 30 in the series for
food away from home of the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the
Department of Labor. Each adjustment shall be based on the
unrounded adjustment for the prior 12-month period.''; and
(2) by striking paragraph (4).
(b) Effective Date.--The amendments made by subsection (a)
shall become effective on January 1, 1996.
SEC. 205. SPECIAL MILK PROGRAM.
(a) In General.--Section 3(a) of the Child Nutrition Act of
1966 (42 U.S.C. 1772(a)) is amended by striking paragraph (8)
and inserting the following: [[Page S8107]]
``(8) Adjustments.--
``(A) In general.--Except as otherwise provided in this
paragraph, in the case of each school year, the Secretary
shall--
``(i) base the adjustment made under paragraph (7) on the
amount of the unrounded adjustment for the preceding school
year;
``(ii) adjust the resulting amount in accordance with
paragraph (7); and
``(iii) round the result to the nearest lower cent
increment.
``(B) Adjustment on january 1, 1996.--On January 1, 1996,
the Secretary shall round the minimum rate referred to in
paragraph (7) to the nearest lower cent increment.
``(C) Adjustment for 1996-97 school year.--In the case of
the school year beginning July 1, 1996, the minimum rate
shall be the same as the minimum rate for the school year
beginning July 1, 1995, rounded to the nearest lower cent
increment.
``(D) Adjustment for 1997-98 school year.--In the case of
the school year beginning July 1, 1997, the Secretary shall--
``(i) base the adjustment made under paragraph (7) on the
amount of the unrounded adjustment for the minimum rate for
the school year beginning July 1, 1995;
``(ii) adjust the resulting amount to reflect changes in
the Producer Price Index for Fresh Processed Milk published
by the Bureau of Labor Statistics of the Department of Labor
for the most recent 12-month period for which the data are
available; and
``(iii) round the result to the nearest lower cent
increment.''.
(b) Effective Date.--The amendment made by subsection (a)
shall become effective on January 1, 1996.
SEC. 206. FREE AND REDUCED PRICE BREAKFASTS.
(a) In General.--Section 4(b) of the Child Nutrition Act of
1966 (42 U.S.C. 1773(b)) is amended--
(1) in the second sentence of paragraph (1)(B), by striking
``, adjusted to the nearest one-fourth cent'' and inserting
``(as adjusted pursuant to section 11(a) of the National
School Lunch Act (42 U.S.C. 1759a(a))''; and
(2) in paragraph (2)(B)(ii)--
(A) by striking ``nearest one-fourth cent'' and inserting
``nearest lower cent increment for the applicable school
year''; and
(B) by inserting before the period at the end the
following: ``, and the adjustment required by this clause
shall be based on the unrounded adjustment for the preceding
school year''.
(b) Effective Date.--The amendments made by subsection (a)
shall become effective on July 1, 1996.
SEC. 207. CONFORMING REIMBURSEMENT FOR PAID BREAKFASTS AND
LUNCHES.
(a) In General.--The last sentence of section 4(b)(1)(B) of
the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)(B)) is
amended by striking ``8.25 cents'' and all that follows
through ``Act)'' and inserting ``the same as the national
average lunch payment established under section 4(b) of the
National School Lunch Act (42 U.S.C. 1753(b))''.
(b) Effective Date.--The amendment made by subsection (a)
shall become effective on January 1, 1996.
Subtitle B--Grant Programs
SEC. 211. SCHOOL BREAKFAST STARTUP GRANTS.
Section 4 of the Child Nutrition Act of 1966 (42 U.S.C.
1773) is amended by striking subsection (g).
SEC. 212. NUTRITION EDUCATION AND TRAINING PROGRAMS.
Section 19(i)(2)(A) of the Child Nutrition Act of 1966 (42
U.S.C. 1788(i)(2)(A)) is amended by striking ``$10,000,000''
and inserting ``$7,000,000''.
SEC. 213. EFFECTIVE DATE.
The amendments made by this subtitle shall become effective
on October 1, 1996.
Subtitle C--Other Amendments
SEC. 221. FREE AND REDUCED PRICE POLICY STATEMENT.
(a) School Lunch Program.--Section 9(b)(2) of the National
School Lunch Act (42 U.S.C. 1758(b)(2)) is amended by adding
at the end the following:
``(D) Free and reduced price policy statement.--A school
shall not be required to submit a free and reduced price
policy statement to a State educational agency under this Act
unless there is a substantive change in the free and reduced
price policy of the school. A routine change in the policy of
a school, such as an annual adjustment of the income
eligibility guidelines for free and reduced price meals,
shall not be sufficient cause for requiring the school to
submit a policy statement.''.
(b) School Breakfast Program.--Section 4(b)(1) of the Child
Nutrition Act of 1966 (42 U.S.C. 1773(b)(1)) is amended by
adding at the end the following:
``(E) Free and reduced price policy statement.--A school
shall not be required to submit a free and reduced price
policy statement to a State educational agency under this Act
unless there is a substantive change in the free and reduced
price policy of the school. A routine change in the policy of
a school, such as an annual adjustment of the income
eligibility guidelines for free and reduced price meals,
shall not be sufficient cause for requiring the school to
submit a policy statement.''.
SEC. 222. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
(a) Permitting Offer Versus Serve.--Section 13(f) of the
National School Lunch Act (42 U.S.C. 1761(f)) is amended--
(1) by striking ``(f) Service'' and inserting the
following:
``(f) Nutritional Standards.--
``(1) In general.--Service''; and
(2) by adding at the end the following:
``(2) Offer versus serve.--At the option of a local school
food authority, a student in a school under the authority
that participates in the program may be allowed to refuse not
more than 1 item of a meal that the student does not intend
to consume. A refusal of an offered food item shall not
affect the amount of payments made under this section to a
school for the meal.''.
(b) Removing Mandatory Notice to Institutions.--Section
13(n)(2) of the Act is amended by striking ``and its plans
and schedule'' and inserting ``except that the Secretary may
not require a State to submit a plan or schedule''.
SEC. 223. CHILD AND ADULT CARE FOOD PROGRAM.
(a) Payments to Sponsor Employees.--Paragraph (2) of the
last sentence of section 17(a) of the National School Lunch
Act (42 U.S.C. 1766(a)) is amended--
(1) by striking ``and'' at the end of subparagraph (B);
(2) by striking the period at the end of subparagraph (C)
and inserting ``; and''; and
(3) by adding at the end the following:
``(D) in the case of a family or group day care home
sponsoring organization that employs more than 1 employee,
the organization does not base payments to an employee of the
organization on the number of family or group day care homes
recruited, managed, or monitored.''.
(b) Improved Targeting of Day Care Home Reimbursements.--
(1) Restructured day care home reimbursements.--Section
17(f)(3) of the Act is amended by striking ``(3)(A)
Institutions'' and all that follows through the end of
subparagraph (A) and inserting the following:
``(3) Reimbursement of family or group day care home
sponsoring organizations.--
``(A) Reimbursement factor.--
``(i) In general.--An institution that participates in the
program under this section as a family or group day care home
sponsoring organization shall be provided, for payment to a
home of the organization, reimbursement factors in accordance
with this subparagraph for the cost of obtaining and
preparing food and prescribed labor costs involved in
providing meals under this section.
``(ii) Tier i family or group day care homes.--
``(I) Definition.--In this paragraph, the term `tier I
family or group day care home' means--
``(aa) a family or group day care home that is located in a
geographic area, as defined by the Secretary based on census
data, in which at least 50 percent of the children residing
in the area are members of households whose incomes meet the
eligibility standards for free or reduced price meals under
section 9;
``(bb) a family or group day care home that is located in
an area served by a school enrolling elementary students in
which at least 50 percent of the total number of children
enrolled are certified eligible to receive free or reduced
price school meals under this Act or the Child Nutrition Act
of 1966 (42 U.S.C. 1771 et seq.); or
``(cc) a family or group day care home that is operated by
a provider whose household meets the eligibility standards
for free or reduced price meals under section 9 and whose
income is verified by a sponsoring organization under
regulations established by the Secretary.
``(II) Reimbursement.--Except as provided in subclause
(III), a tier I family or group day care home shall be
provided reimbursement factors under this clause without a
requirement for documentation of the costs described in
clause (i), except that reimbursement shall not be provided
under this subclause for meals or supplements served to the
children of a person acting as a family or group day care
home provider unless the children meet the eligibility
standards for free or reduced price meals under section 9.
``(III) Factors.--Except as provided in subclause (IV), the
reimbursement factors applied to a home referred to in
subclause (II) shall be the factors in effect on the date of
enactment of this subclause.
``(IV) Adjustments.--The reimbursement factors under this
subparagraph shall be adjusted on August 1, 1996, July 1,
1997, and each July 1 thereafter, to reflect changes in the
Consumer Price Index for food at home for the most recent 12-
month period for which the data are available. The
reimbursement factors under this subparagraph shall be
rounded to the nearest lower cent increment and based on the
unrounded adjustment for the preceding 12-month period.
``(iii) Tier ii family or group day care homes.--
``(I) In general.--
``(aa) Factors.--Except as provided in subclause (II), with
respect to meals or supplements served under this clause by a
family or group day care home that does not meet the criteria
set forth in clause (ii)(I), the reimbursement factors shall
be $1 for lunches and suppers, 30 cents for breakfasts, and
15 cents for supplements.
``(bb) Adjustments.--The factors shall be adjusted on July
1, 1997, and each July 1 thereafter, to reflect changes in
the Consumer Price Index for food at home for the most recent
12-month period for which the data are available. The
reimbursement factors under this item shall be rounded down
to the nearest lower cent increment and based on the
unrounded adjustment for the preceding 12-month
period. [[Page S8108]]
``(cc) Reimbursement.--A family or group day care home
shall be provided reimbursement factors under this subclause
without a requirement for documentation of the costs
described in clause (i), except that reimbursement shall not
be provided under this subclause for meals or supplements
served to the children of a person acting as a family or
group day care home provider unless the children meet the
eligibility standards for free or reduced price meals under
section 9.
``(II) Other factors.--A family or group day care home that
does not meet the criteria set forth in clause (ii)(I) may
elect to be provided reimbursement factors determined in
accordance with the following requirements:
``(aa) Children eligible for free or reduced price meals.--
In the case of meals or supplements served under this
subsection to children who are members of households whose
incomes meet the eligibility standards for free or reduced
price meals under section 9, the family or group day care
home shall be provided reimbursement factors set by the
Secretary in accordance with clause (ii)(III).
``(bb) Ineligible children.--In the case of meals or
supplements served under this subsection to children who are
members of households whose incomes do not meet the
eligibility standards, the family or group day care home
shall be provided reimbursement factors in accordance with
subclause (I).
``(III) Information and determinations.--
``(aa) In general.--If a family or group day care home
elects to claim the factors described in subclause (II), the
family or group day care home sponsoring organization serving
the home shall collect the necessary income information, as
determined by the Secretary, from any parent or other
caretaker to make the determinations specified in subclause
(II) and shall make the determinations in accordance with
rules prescribed by the Secretary.
``(bb) Categorical eligibility.--In making a determination
under item (aa), a family or group day care home sponsoring
organization may consider a child participating in or
subsidized under, or a child with a parent participating in
or subsidized under, a federally or State supported child
care or other benefit program with an income eligibility
limit that does not exceed the eligibility standard for free
or reduced price meals under section 9 to be a child who is a
member of a household whose income meets the eligibility
standards under section 9.
``(cc) Factors for children only.--A family or group day
care home may elect to receive the reimbursement factors
prescribed under clause (ii)(III) solely for the children
participating in a program referred to in item (bb) if the
home elects not to have income statements collected from
parents or other caretakers.
``(IV) Simplified meal counting and reporting procedures.--
The Secretary shall prescribe simplified meal counting and
reporting procedures for use by a family or group day care
home that elects to claim the factors under subclause (II)
and by a family or group day care home sponsoring
organization that serves the home. The procedures the
Secretary prescribes may include 1 or more of the following:
``(aa) Setting an annual percentage for each home of the
number of meals served that are to be reimbursed in
accordance with the reimbursement factors prescribed under
clause (ii)(III) and an annual percentage of the number of
meals served that are to be reimbursed in accordance with the
reimbursement factors prescribed under clause (iii)(I), based
on the family income of children enrolled in the home in a
specified month or other period.
``(bb) Placing a home into 1 of 2 or more reimbursement
categories annually based on the percentage of children in
the home whose households have incomes that meet the
eligibility standards under section 9, with each such
reimbursement category carrying a set of reimbursement
factors such as the factors prescribed under clause (ii)(II)
or subclause (I) or factors established within the range of
factors prescribed under clause (ii)(II) and subclause (I).
``(cc) Such other simplified procedures as the Secretary
may prescribe.
``(V) Minimum verification requirements.--The Secretary may
establish any necessary minimum verification requirements.''.
(2) Grants to states to provide assistance to family or
group day care homes.--Section 17(f)(3) of the Act is amended
by adding at the end the following:
``(D) Grants to states to provide assistance to family or
group day care homes.--
``(i) In general.--
``(I) Reservation.--From amounts made available to carry
out this section, the Secretary shall reserve $5,000,000 of
the amount made available for fiscal year 1996.
``(II) Purpose.--The Secretary shall use the funds made
available under subclause (I) to provide grants to States for
the purpose of providing--
``(aa) assistance, including grants, to family and day care
home sponsoring organizations and other appropriate
organizations, in securing and providing training, materials,
automated data processing assistance, and other assistance
for the staff of the sponsoring organizations; and
``(bb) training and other assistance to family and group
day care homes in the implementation of the amendments to
subparagraph (A) made by section 574(b)(1) of the Family
Self-Sufficiency Act of 1995.
``(ii) Allocation.--The Secretary shall allocate from the
funds reserved under clause (i)(II)--
``(I) $30,000 in base funding to each State; and
``(II) any remaining amount among the States, based on the
number of family day care homes participating in the program
in a State in 1994 as a percentage of the number of all
family day care homes participating in the program in 1994.
``(iii) Retention of funds.--Of the amount of funds made
available to a State for a fiscal year under clause (i), the
State may retain not to exceed 30 percent of the amount to
carry out this subparagraph.
``(iv) Additional payments.--Any payments received under
this subparagraph shall be in addition to payments that a
State receives under subparagraph (A) (as amended by section
134(b)(1) of the Family Self-Sufficiency Act of 1995).''.
(3) Provision of data.--Section 17(f)(3) of the Act (as
amended by paragraph (2)) is further amended by adding at the
end the following:
``(E) Provision of data to family or group day care home
sponsoring organizations.--
``(i) Census data.--The Secretary shall provide to each
State agency administering a child and adult care food
program under this section data from the most recent
decennial census survey or other appropriate census survey
for which the data are available showing which areas in the
State meet the requirements of subparagraph (A)(ii)(I)(aa).
The State agency shall provide the data to family or group
day care home sponsoring organizations located in the State.
``(ii) School data.--
``(I) In general.--A State agency administering the school
lunch program under this Act or the school breakfast program
under the Child Nutrition Act of 1966 (42 U.S.C. 1771 et
seq.) shall provide data for each elementary school in the
State, or shall direct each school within the State to
provide data for the school, to approved family or group day
care home sponsoring organizations that request the data, on
the percentage of enrolled children who are eligible for free
or reduced price meals.
``(II) Use of data from preceding school year.--In
determining for a fiscal year or other annual period whether
a home qualifies as a tier I family or group day care home
under subparagraph (A)(ii)(I), the State agency administering
the program under this section, and a family or group day
care home sponsoring organization, shall use the most current
available data at the time of the determination.
``(iii) Duration of determination.--For purposes of this
section, a determination that a family or group day care home
is located in an area that qualifies the home as a tier I
family or group day care home (as the term is defined in
subparagraph (A)(ii)(I)), shall be in effect for 3 years
(unless the determination is made on the basis of census
data, in which case the determination shall remain in effect
until more recent census data are available) unless the State
agency determines that the area in which the home is located
no longer qualifies the home as a tier I family or group day
care home.''.
(4) Conforming amendments.--Section 17(c) of the Act is
amended by inserting ``except as provided in subsection
(f)(3),'' after ``For purposes of this section,'' each place
it appears in paragraphs (1), (2), and (3).
(c) Disallowing Meal Claims.--The fourth sentence of
section 17(f)(4) of the Act is amended by inserting
``(including institutions that are not family or group day
care home sponsoring organizations)'' after ``institutions''.
(d) Elimination of State Paperwork and Outreach Burden.--
Section 17 of the Act is amended by striking subsection (k)
and inserting the following:
``(k) Training and Technical Assistance.--A State
participating in the program established under this section
shall provide sufficient training, technical assistance, and
monitoring to facilitate effective operation of the program.
The Secretary shall assist the State in developing plans to
fulfill the requirements of this subsection.''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall become effective on the
date of enactment of this Act.
(2) Improved targeting of day care home reimbursements.--
The amendments made by paragraphs (1), (3), and (4) of
subsection (b) shall become effective on August 1, 1996.
SEC. 224. REDUCING REQUIRED REPORTS TO STATE AGENCIES AND
SCHOOLS.
Section 19 of the National School Lunch Act (42 U.S.C.
1769a) is amended by striking subsection (c) and inserting
the following:
``(c) Report.--Not later than 1 year after the date of
enactment of the Family Self-Sufficiency Act of 1995, the
Secretary shall--
``(1) review all reporting requirements under this Act and
the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) that
are in effect, as of the date of enactment of the Family
Self-Sufficiency Act of 1995, for agencies and schools
referred to in subsection (a); and
``(2) provide a report to the Committee on Economic and
Educational Opportunities of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the
Senate that--
``(A) describes the reporting requirements described in
paragraph (1) that are required by law; [[Page S8109]]
``(B) makes recommendations concerning the elimination of
any requirement described in subparagraph (A) because the
contribution of the requirement to program effectiveness is
not sufficient to warrant the paperwork burden that is placed
on agencies and schools referred to in subsection (a); and
``(C) provides a justification for reporting requirements
described in paragraph (1) that are required solely by
regulation.''.
TITLE III--REAUTHORIZATION
SEC. 301. COMMODITY DISTRIBUTION PROGRAM; COMMODITY
SUPPLEMENTAL FOOD PROGRAMS.
(a) Reauthorization.--The first sentence of section 4(a) of
the Agriculture and Consumer Protection Act of 1973 (Public
Law 93-86; 7 U.S.C. 612c note) is amended by striking
``1995'' and inserting ``2000''.
(b) Administrative Funding.--Section 5(a)(2) of the Act
(Public Law 93-86; 7 U.S.C. 612c note) is amended by striking
``1995'' and inserting ``2000''.
SEC. 302. EMERGENCY FOOD ASSISTANCE PROGRAM.
(a) Reauthorization.--The first sentence of section
204(a)(1) of the Emergency Food Assistance Act of 1983
(Public Law 98-8; 7 U.S.C. 612c note) is amended by striking
``1995'' and inserting ``2000''.
(b) Program Termination.--Section 212 of the Act (Public
Law 98-8; 7 U.S.C. 612c note) is amended by striking ``1995''
and inserting ``2000''.
(c) Required Purchases of Commodities.--Section 214 of the
Act (Public Law 98-8; 7 U.S.C. 612c note) is amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2000''; and
(2) in subsection (e), by striking ``1995'' each place it
appears and inserting ``2000''.
SEC. 303. SOUP KITCHENS PROGRAM.
Section 110 of the Hunger Prevention Act of 1988 (Public
Law 100-435; 7 U.S.C. 612c note) is amended--
(1) in the first sentence of subsection (a), by striking
``1995'' and inserting ``2000''; and
(2) in subsection (c)(2)--
(A) in the paragraph heading, by striking ``1995'' and
inserting ``2000''; and
(B) by striking ``1995'' each place it appears and
inserting ``2000''.
SEC. 304. NATIONAL COMMODITY PROCESSING.
The first sentence of section 1775(2)(A) of the Agriculture
and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is amended by
striking ``1995'' and inserting ``2000''.
____
Senate Agriculture Committee Welfare Reform Provisions
More authority and flexibility for states
The bill gives states more freedom and choice in
administering the Food Stamp program. The bill will:
Allow states to operate a simplified and state-designed
Food Stamp program for cash welfare recipients, as long as
federal costs do not increase.
Let states tighten the definition of a ``household'' so
that people living under a single roof could be considered
one household. For example, under current law, unmarried
couples may qualify for more Food Stamp benefits than a
married couple--in effect, a ``marriage penalty.''
Delete laws that micromanage state Food Stamp
administration. Such laws now go so far as to specify when to
use boldface type in Food Stamp applications and require USDA
review of local office hours.
Allow states to recover over-issued Food Stamp benefits
immediately.
promoting work, responsibility and state reform initiatives
The bill encourages responsible behavior, empowers the
states to pursue innovative welfare reforms, and reduces
federal spending. The bill will:
Ensure Food Stamp benefits do not increase when a
recipient's welfare benefits are reduced for violating
welfare rules.
Allow states to operate work support programs in which the
value of Food Stamp benefits is paid to an employer who hires
a welfare recipient and passes on the benefit to the employee
as part of wages. Such systems encourage movement from
welfare to work.
Allow a limited number of states to offer Food Stamp
benefits in cash to recipients who have been working at least
three months.
Strengthen child support enforcement by allowing states to
require that custodial parents cooperate with enforcement
agencies, and to disqualify from benefits a parent who is in
arrears on court-ordered child support. Also allow states to
disqualify non-custodial parents who refuse to cooperate in
child support and paternity proceedings.
Give states more ability to undertake welfare reform
demonstration projects where they might restrict or reduce
Food Stamp benefits. Impose a strict 60-day time limit for
USDA to respond to state proposals for welfare reform. The
state's request is automatically approved if USDA does not
respond.
Sanction any adult who voluntarily quits a job while on
Food Stamps. Require that individuals who violate Food Stamp
work requirements be disqualified from benefits for mandatory
minimum periods, with states
able to disqualify for longer periods if they choose.
Exempt Food Stamp benefits delivered through Electronic
Benefit Transfer from Regulation E, which limits cardholder
liability if cards are lost or stolen.
Establish a new work requirement for non-elderly, able-
bodied adults without dependents, generally requiring them to
work or be in job training within six months, or lose Food
Stamp eligibility.
Require that anyone age 21 or younger who lives with his or
her parents must be considered part of the parents'
household.
Reduce the rate of growth in Food Stamp spending by
revising the way benefits are calculated. Currently, benefits
are 103 percent of a ``thrifty food plan'' reflecting a low-
cost diet. The bill would pay benefits at 100 percent of the
thrifty food plan, the same formula used until 1989.
Reduce the ``standard deduction,'' an amount automatically
subtracted from applicants' income to determine eligibility
and benefits.
Repeal scheduled increases in the maximum value of
automobiles that may be owned by persons who wish to collect
Food Stamp benefits. Count energy assistance as income when
determining Food Stamp eligibility.
Discourage Food Stamp receipt by legal aliens. Extend the
length of time for which a person who sponsors a legal alien
must, in effect, be financially responsible for the alien.
improving child nutrition programs and containing costs
The bill retains child nutrition programs at the federal
level but reduces excessive federal regulation. The bill
will:
Reduce statutory paperwork burdens on local school
districts and states. The bill deletes several provisions
that micromanage states' administration of the Child and
Adult Care Food Program and requires a survey to find more
reporting requirements that can be eliminated.
Conform federal reimbursement rates for breakfasts served
to non-poor children with those for lunches. Freeze for two
years the reimbursement rate for meals and snacks served to
non-poor children, and federal assistance in the form of
commodities.
Reduce the subsidies for middle- and higher-income children
in family day care homes.
End an extra and unsupported subsidy paid to schools which
serve a high percentage of free and reduced-price meals.
Bring summer food program reimbursements more into line with
school reimbursement rates.
______
By Mr. AKAKA:
S. 905. A bill to provide for the management of the airplane over
units of the National Park System, and for other purposes; to the
Committee on Commerce, Science, and Transportation.
THE NATIONAL PARKS AIRSPACE MANAGEMENT ACT OF 1995
Mr. AKAKA. Mr. President, today I am reintroducing legislation
I offered last year, but in simpler and improved form, that is designed
to mitigate the impact of commercial air tour flights over units of the
National Park System. The National Parks Airspace Management Act of
1995 would create a new statutory framework for minimizing the
environmental effects of air tour activity on park units.
Briefly, my bill would: specify the respective authorities of the
National Park Service and the Federal Aviation Administration [FAA] in
developing and enforcing park overflight policy; establish a process
for developing individualized airspace management plans at parks
experiencing significant commercial air tour activity; provide for the
designation of those parks which did not experience commercial air tour
activity as of January 1, 1995 as flight-free parks; establish a new,
single standard governing the certification and operation of all
commercial air tour operators that conduct flights over national parks;
require a variety of safety measures, such as improved aircraft
markings, maintenance of accurate aeronautical charts, installation of
flight monitoring equipment, and an air tour database; and, establish a
National Park Overflight Advisory Council.
As my colleagues are aware, aircraft overflights of noise-sensitive
areas such as national parks have been increasing in scope and
intensity for a number of years, sparking significant public debate and
controversy about the safety and environmental impact of such activity.
The focus of much of the debate, and much of the controversy, has been
the commercial air tour sightseeing industry, which has experienced
explosive growth in some areas, most notably at the Grand Canyon and in
my own State of Hawaii.
The air tour industry has become a $500 million business nationwide.
Fully half of that revenue is generated by the 800,000 flightseers who
annually view the Grand Canyon area by aircraft. In 1994, the Hawaii
air tour industry, which is centered around tours of Haleakala and
Hawaii Volcanoes National Parks, provided tours to more than 500,000
passengers, generating approximately $75 million in
revenues. [[Page S8110]]
Apart from parks in Arizona and Hawaii, significant commercial air
tour activity has also been developing in such widely dispersed
locations as Glacier National Park in Montana, the Utah national parks,
Mount Rushmore in South Dakota, and the Statute of Liberty and Niagara
Falls in New York. In fact, at Great Smoky Mountains National Park,
commercial air tour overflights have fostered such opposition that the
State of
Tennessee has passed legislation to restrict such flights.
Thus, the problems that my bill attempts to address are national, not
merely local, in scope and interest. I would venture to say that every
Member of this body has, or will soon have, a park in his or her State
that is impacted to a greater or lesser degree by commercial air tour
operations.
Mr. President, the legislation I am offering is not the first attempt
to deal with this issue through legislation. In 1987, Congress passed
the National Parks Overflights Act, Public Law 100-91, which
established certain flight restrictions at three parks which were
experiencing heavy air traffic. Flights below-the-rim at Grand Canyon
were permanently banned and Special Federal Aviation Regulation [SFAR]
was established creating flight-free zones and air corridors. The act
established less stringent temporary altitude restrictions for Yosemite
in California and Haleakala in Hawaii.
The act also required that a comprehensive study be conducted by the
Park Service, with FAA input, to determine appropriate minimum
altitudes for aircraft overflying national parks. Completed and
submitted to Congress in September 1994, the study evaluated the impact
of aircraft noise on the safety of park system users and on park values
and offered numerous recommendations to Congress and the administration
on ways to mitigate the effects of aircraft noise, including incentives
to encourage use of quiet aircraft technology, flight-free zones and
flight corridors, altitude restrictions, noise budgets, and limits on
times of air tour operations.
Unfortunately, the minimum altitude restrictions mandated by Public
Law 100-91 have not fully addressed the noise and safety problems at
Grand Canyon, Yosemite, and particularly Haleakala, given the explosive
growth in air tour activity at these parks. And, of course, the act did
not establish mitigation measures for other parks experiencing high
levels of air traffic. And, to date, none of the noise and safety
mitigation measures recommended by the Park Overflights Study have been
implemented.
Since October 1, 1988, there have been 139 air tour accidents in the
United States, resulting in 117 fatalities. It saddens me to report
that my home State of Hawaii has experienced a disproportionately high
number of these tragedies. During that period, 34 of those accidents
occurred in Hawaii, resulting in 35 fatalities.
Concern over the high incidence of air tour accidents in Hawaii's
skies compelled the FAA, in March 1994, to initiate a comprehensive
review of the operations and maintenance practices of the Hawaii air
tour industry. This review culminated in the implementation of an
emergency regulation--SFAR-71--which imposed numerous safety measures
upon Hawaii's commercial air tour operators, including a 1,500-foot
above-ground-level minimum
altitude restriction. To date, the FAA's emergency rulemaking actions
generally appear to have been effective in providing short-term
solutions to many of the safety problems associated with commercial air
tour operations in Hawaii.
Similarly, in 1992, when the FAA implemented SFAR-50-2 governing
airspace over Grand Canyon National Park, a significant improvement in
air safety was effected there also. Unfortunately, however, short-term,
emergency measures such as SFAR's 71 and 50-2 have not, and cannot be
expected to, addressed the full range of safety problems that have
attended the explosive growth of the commercial air tour industry in
this country.
In addition to safety issues, the rapid growth of the air tour
industry has fostered environmental concerns as well, largely centering
on noise problems. The Clinton administration has made a good faith
effort to address the noise and environmental impacts of commercial air
tour overflights through existing regulatory authorities and
mechanisms. The interagency working group formed in 1993 by Secretary
Babbitt and Secretary Pena has demonstrated that limited cooperation
between the FAA and Park Service is attainable in addressing this
issue.
Nevertheless, while some progress has been made, the pace has been
painfully slow and tangible results so far are not readily evident. In
the meantime, the number of air tour flights has continued to grow,
serving to exacerbate existing environmental and safety problems. This
experience has shown us that only Congress, through legislation, can
produce lasting, effective policy on this matter.
The simple truth is, the complex problems associated with park
overflights cannot be fully resolved administratively. This is largely
due to the fact that the FAA and the Park Service, the two agencies
with the greater responsibility in this area, are governed by vastly
different statutory mandates. On the one hand, the FAA is responsible
for the safety and efficiency of air commerce; on the other, the Park
Service is charged with protecting and preserving park resources. At
some point--in this case the regulation of airspace over noise
sensitive areas--their interests are mutually incompatible. Only by
modifying or clarifying their statutory responsibilities with respect
to the management of park airspace can the two Federal agencies be
expected to work together to address the overflights problem.
Mr. President, the legislation I am proposing today would address
this and other barriers to the development of a comprehensive park
overflights policy. My bill deals with the commercial air tour
overflights issue in a national context, since the safety and
environmental concerns which are being debated so vociferously in
Hawaii are being echoed at park units scattered throughout the National
Park System.
At the outset, my bill establishes a finding that National Park
Service policy recognizes the importance of natural quiet as a resource
to be conserved and protected in certain park units. Toward that end,
my bill creates a new statutory framework for minimizing the
environmental effects of air tour activity on units throughout the
National Park System.
The bill articulates a regulatory scheme under which the Park Service
and the FAA are required to work in tandem to develop operational
policies with respect to the overflights problem. It provides for joint
administration in many areas while clearly denoting the FAA's primacy
on matters related to safety and air efficiency and the Park Service's
lead role in identifying the resources to be protected and the best
means of protecting them.
The bill requires the development, with public involvement, of
individually tailored park airspace management plans for units
significantly affected by overflight activity, as determined by the
director of the Park Service. It calls for good faith negotiations
between commercial air tour operators and both the Park Service and the
FAA to reach agreement on flights over park areas.
It provides for the Park Service to recommend to the FAA the
designation of individual units as flight-free parks for those units
which, as of January 1, 1995, experienced no overflights by commercial
air tour operators and where air tour flights would be incompatible
with or injurious to the purposes or values of those parks.
It also mandates the development by the FAA or a generic operational
rule for commercial air tour operations at all units of the National
Park System, subject to modification at individual park units based on
negotiations among air tour operators, the FAA, and the Park Service.
My legislation requires the FAA to implement a single standard,
through a new subpart of part 135, title 14, Code of Federal
Regulations, for certifying commercial air tour operators. Such a
uniform standard, which has been recommended by the National
Transportation Safety Board [NTSB], will substantially enhance safety
by providing essential consistency in such areas as pilot
qualifications, training, and flight and duty time limitations.
It mandates commercial air tour safety initiatives recommended by the
[[Page S8111]] NTSB and others, including the installation of a flight
monitoring system and the use of identification markings unique to a
commercial air tour operator, the development of aeronautical charts
which reflect airspace management provisions with respect to individual
park units, and the development of a national data base on air tour
operations.
Last but by no means least, the bill establishes a National Park
Overflight Advisory Council which would provide advice and
recommendations to the Park Service and the FAA on all issues related
to commercial air tour flights over park units and serve as a national
forum for interest groups--including representatives of the air tour
industry and the environmental community--to constructively exchange
views.
It is significant to note that my bill will not affect emergency
flight operations, general aviation, military aviation, or scheduled
commercial passenger flights that transit National Park System units.
Furthermore, recognizing the special needs for air travel in Alaska,
this bill will not affect the management of park units or aircraft
operations over or within park units in the State of Alaska.
Mr. President, I believe that the legislation I am offering today
will give us the tools to minimize the adverse effects of commercial
air tour flights on park resources as well as on the ground visitor
experience, while at the same time enhancing the safety of such
flights. I believe it is a balanced measure that, through extensive
opportunity for public involvement, attempts to accommodate the
legitimate concerns of all park users, including air tour operators and
passengers. Indeed, I strongly believe that under certain well-
regulated conditions, air tourism provides an important service to
millions of elderly, disabled, or other visitors who might otherwise
never enjoy the wonders of our national parks.
Nevertheless, my bill's central premise is that the 367 park units of
the National Park System were created because of their exceptional
natural or cultural significance to the American people. All of the
provisions of the National Parks Airspace Management Act are therefore
designed with the protection of park resources as their essential, if
not exclusive, goal. For it is self-evident that a park whose values
have corrupted is a park ultimately not worth visiting, by air or land.
Thank you, Mr. President. I urge my colleagues to support this
measure.
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. 905
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 ``National Parks Airspace
Management Act of 1995''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Commercial air tour flights over units of the National
Park System (referred to in this Act as ``units'') may have
adverse effects on the units. The flights may degrade the
experiences of visitors to the affected areas and may have
adverse effects on wildlife and cultural resources in those
areas. A significant number of complaints about commercial
air tour flights over certain areas under the jurisdiction of
the National Park Service have been registered.
(2) Whereas resource preservation is the primary
responsibility of the National Park Service, the agency
continues to struggle to develop a policy that would achieve
an acceptable balance between flights over units by
commercial air tour operators and the protection of resources
in the units and the experiences of visitors to the units.
(3) Whereas the mission of the Federal Aviation
Administration is to develop and maintain a safe and
efficient system of air transportation while considering the
impact of aircraft noise, the agency continues to have
difficulty adequately controlling commercial air tour flights
over units.
(4) Significant and continuing concerns exist regarding the
safety of commercial air tour flights over some units,
including concerns for the safety of occupants of the
flights, visitors to those units, Federal employees at those
units, and the general public. The concern of the Congress
over the effects of low-level flights on units led to the
enactment, on August 18, 1987, of the Act entitled ``An Act
to require the Secretary of the Interior to conduct a study
to determine the appropriate minimum altitude for aircraft
flying over national park system units'' (Public Law 100-91;
101 Stat. 674; 16 U.S.C. 1a-1 note). The Act requires the
Director to identify problems associated with flights by
aircraft in the airspace over units.
(5) Pursuant to the Act referred to in paragraph (4), on
September 12, 1994, the Director submitted a report to
Congress entitled ``Report On Effects Of Aircraft Overflights
On The National Park System''. The National Park Service
report concluded that, because the details of national park
overflights problems are park-specific, no single altitude
can be identified for the entire National Park System. The
National Park Service report presented a number of
recommendations for resolution of the problem, including--
(A) the development of airspace and park use resolution
processes;
(B) the development of a single operational rule to
regulate air tour operations;
(C) seeking continued improvements in safety and
interagency planning related to airspace management; and
(D) the development of a Federal Aviation Administration
rule to facilitate preservation of natural quiet.
(6) The policy of the National Park Service recognizes the
importance of natural quiet as a resource to be conserved and
protected in certain units. The National Park Services
defines natural quiet as ``the natural ambient sound
conditions found in certain units of the National Park
Service'' and recognizes that visitors to certain units may
reasonably expect quiet during their visits to those units
established with the specific goal of providing visitors with
an opportunity for solitude.
(7) The number of flights by aircraft over units has
increased rapidly since the date of enactment of the Act
referred to in paragraph (4) and, due to the high degree of
satisfaction expressed by air tour passengers, as well as the
economic impact of air tour operations on the tourist
industry, the number of flights will likely continue to
increase. A progression of aesthetic and safety concerns
about low altitude flights have been associated with growth
in commercial air tour traffic. As the number of flights
continues to increase, the likelihood exists that there will
be a concomitant increase in the number of conflicts
regarding management of the airspace over the units.
(8) A need exists for a Federal policy to address the
conflicts and problems associated with flights by commercial
air tour aircraft in the airspace over units. A statutory
process should be established to require the Secretary of
Transportation and the Secretary of the Interior, acting
through the Director, to work together to mitigate the impact
of commercial air tour operations on units, or specific areas
within units that are adversely affected by commercial air
tour operations.
SEC. 2. DEFINITIONS.
For the purposes of this Act, the following definitions
shall apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Aviation Administration.
(2) Agreement.--The term ``agreement'' means an agreement
entered into by a commercial air tour operator, the Director,
and the Administrator under section 4(h) that provides for
the application of relevant provisions of an airspace
management plan for the unit concerned to the commercial air
tour operator.
(3) Air tour aircraft.--The term ``air tour aircraft''
means an aircraft (including a fixed-wing aircraft or a
rotorcraft) that makes air tour flights.
(4) Air tour flight.--The term ``air tour flight'' means a
passenger flight conducted by air tour aircraft for the
purpose of permitting a passenger to the flight to view an
area over which the flight occurs.
(5) Commercial air tour aircraft.--The term ``commercial
air tour aircraft'' means any air tour aircraft used by a
commercial air tour operator in providing air tour flights
for hire to the public.
(6) Commercial air tour operator.--The term ``commercial
air tour operator'' means a company, corporation,
partnership, individual, or other entity that provides air
tour flights for hire to the public.
(7) Council.--The term ``Council'' means the National Park
Overflight Advisory Council established under section 9.
(8) Director.--The term ``Director'' means the Director of
the National Park Service.
(9) Flight-free park.--The term ``flight-free park'' means
a unit over which commercial air tour operations are
prohibited.
(10) Unit.--The term ``unit'' means a unit of the National
Park System.
SEC. 4. NATIONAL PARK AIRSPACE MANAGEMENT PLANS.
(a) In General.--The Director and the Administrator shall,
in accordance with this section, develop and establish a plan
for the management of the airspace above each unit that is
affected by commercial air tour flights to the extent that
the Director considers the unit to be a unit requiring an
airspace management plan.
(b) Plan Purpose.--The purpose of each plan developed under
subsection (a) is to minimize the adverse effects of
commercial air tour flights on the resources of a unit.
(c) Development of Airspace Management Plans.--
(1) Treatment of relevant expertise.--In developing plans
under subsection (a), the Administrator shall defer to the
Director in matters relating to the identification and
[[Page S8112]] protection of park resources, and the Director
shall defer to the Administrator in matters relating to the
safe and efficient management of airspace.
(2) Negotiated rulemaking.--In developing a plan for a
unit, the Director and the Administrator shall consider
utilizing negotiated rulemaking procedures as specified under
subchapter III of chapter 5 of title 5, United States Code,
if the Director and the Administrator determine that the
utilization of those procedures is in the public interest.
(d) Comment on Plans.--In developing a plan for a unit, the
Director and the Administrator shall--
(1) ensure that there is sufficient opportunity for public
comment by air tour operators, environmental organizations,
and other concerned parties; and
(2) give due consideration to the comments and
recommendations of the Council and the Federal Interagency
Airspace/Natural Resource Coordination Group, or any
successor organization to that entity.
(e) Resolution of Plan Inadequacies.--If the Director and
the Administrator disagree with respect to any portion of a
proposed plan under subsection (a), the Director and the
Administrator shall refer the proposed plan to the Secretary
of the Interior and the Secretary of Transportation, and the
Secretaries shall jointly resolve the disagreement.
(f) Assessment of Effects of Overflights.--The Director and
the Administrator may jointly conduct studies to ascertain
the effects of low-level flights of commercial air tour
aircraft over units that the Director and the Administrator
consider necessary for the development of plans under
subsection (a).
(g) Periodic Review.--Not less frequently than every 5
years after the date of establishment of a plan under
subsection (a), the Director and the Administrator shall
review the plan. The purpose of the review shall be to ensure
that the plan continues to meet the purposes for the plan.
The Director and the Administrator may revise a plan if they
jointly determine, based on that review, that the revision is
advisable.
(h) Flights Over Units Covered by Plans.--
(1) Agreement.--A commercial air tour operator may not
conduct commercial air tour flights in the airspace over a
unit covered by an airspace management plan developed under
subsection (a) unless the commercial air tour operator enters
into an agreement with the Director and the Administrator
that authorizes such flights.
(2) Contents.--An agreement under paragraph (1) shall--
(A) provide for the application of relevant provisions of
the airspace management plan for the unit concerned to the
commercial air tour operator; and
(B) to the maximum extent practicable, provide for the
conduct of air tour flights by the air tour operator in a
manner that minimizes the adverse effects of the air tour
flights on the environment of the unit.
SEC. 5. FLIGHT-FREE PARKS.
For units that, as of January 1, 1995, experienced no
overflights by commercial air tour operators, the Director,
in consultation with the Administrator, shall--
(1) prescribe criteria to identify units where air tour
flights by commercial air tour aircraft would be incompatible
with or injurious to the purposes and values for which the
units were established;
(2) identify any units that meet those criteria; and
(3) designate those units as ``flight-free park'' units.
SEC. 6. SINGLE OPERATIONAL RULE FOR COMMERCIAL AIR TOUR
OPERATIONS.
(a) In General.--Except as provided in subsection (b), the
Administrator, after notice and hearing on the record, shall
issue a regulation governing the operation of all air tour
aircraft flights by commercial air tour operators over units.
(b) Separate Operational Rules.--
(1) In general.--The Administrator may prescribe separate
operational rules governing the conduct of flights by fixed-
wing aircraft and by rotorcraft if the Administrator
determines under subsection (a) that separate rules are
warranted.
(2) Development of operational rule.--In developing an
operational rule under paragraph (1), the Administrator
shall--
(A) consider whether differences in the characteristics and
effects on the environment of fixed-wing aircraft and
rotorcraft warrant the development of separate operational
rules with respect to that craft;
(B) provide a mechanism for the Director to recommend
individual units or geographically proximate groups of units
to be designated as aerial sightseeing areas, as defined by
section 92.01 of the Federal Aviation Administration
Handbook, dated January 1992; and
(C) provide a mechanism for the Director to obtain
immediate assistance from the Administrator in resolving
issues relating to the use of airspace above units with
respect to which the issues are of a critical, time-sensitive
nature.
(d) Effect on Agreements.--Nothing in this section is
intended to preclude the Administrator, the Director, and a
commercial air tour operator from entering into, under
section 4(h), an agreement on the conduct of air tour flights
by the air tour operator over a particular unit under
different terms and conditions from those imposed by an
operational rule promulgated under this subsection.
SEC. 7. AIRCRAFT SAFETY.
(a) Development of a Single Standard for Certifying
Commercial Air Tour Operators.--
(1) Commencement of rulemaking.--The Administrator shall
initiate formal rulemaking proceedings (which shall include a
hearing on the record) for the purpose of revising the
regulations contained in part 135 of title 14, Code of
Federal Regulations (relating to air taxi operators and
commercial operators), to prescribe a new subpart to
specifically cover all commercial air tour operators (as that
term shall be defined by the Federal Aviation Administration
under the subpart) that conduct commercial air tour flights
over units.
(2) Covered matters.--The regulations prescribed under
subsection (a) shall address safety and environmental issues
with respect to commercial air tour flights over units. In
prescribing the regulations, the Administrator shall attempt
to minimize the financial and administrative burdens imposed
on commercial air tour operators.
(b) Aircraft Markings.--
(1) Requirement.--Each operator of commercial air tour
aircraft shall display on each air tour aircraft of the
operator the identification marks described in paragraph (2).
(2) Identification marks.--The identification marks for the
aircraft of a commercial air tour operator shall--
(A) be unique to the operator;
(B) be not less than 36 inches in length (or a size
consistent with the natural configuration of the aircraft
fuselage);
(C) appear on both sides of the air tour aircraft of the
air tour operator and on the underside of the aircraft; and
(D) be applied to the air tour aircraft of the air tour
operator in a highly visible color that contrasts sharply
with the original base color paint scheme of the aircraft.
(c) Aeronautical Charts.--The Administrator shall ensure
that the boundaries of each unit and the provisions of the
airspace management plan, operational rule, or Special
Federal Aviation Regulation (SFAR), if any, with respect to
each unit are accurately displayed on aeronautical charts.
(d) Flight Monitoring Systems.--
(1) In general.--The Administrator shall carry out a study
of the feasibility and advisability of requiring that
commercial air tour aircraft operating in the airspace over
units have onboard an automatic flight tracking system
capable of monitoring the altitude and ground position of the
commercial air tour aircraft.
(2) Determination by administrator.--If the Administrator
determines under the study required under paragraph (1) that
the use of flight tracking systems in commercial air tour
aircraft is feasible and advisable, the Administrator and the
Director shall jointly develop a plan for implementing a
program to monitor the altitude and position of commercial
air tour aircraft over units.
(e) National Data Base for Commercial Air Tour Operators.--
The Administrator shall--
(1) establish and maintain a data base concerning all
commercial air tour aircraft operated by commercial air tour
operators that shall be designed to provide data that shall
be used in making--
(A) determinations of--
(i) the scope of commercial air tour flights; and
(ii) accident rates for commercial air tour flights; and
(B) assessments of the safety of commercial air tour
flights; and
(2) on the basis of the information in the data base
established under paragraph (1), ensure that each Flight
Standards District Office of the Administration that serves a
district in which commercial air tour operators conduct
commercial air tour flights is adequately staffed to carry
out the purposes of this Act.
SEC. 8. EXCEPTIONS.
(a) Flight Emergencies.--This Act shall not apply to any
aircraft experiencing an in-flight emergency, participating
in search and rescue, firefighting or police emergency
operations, carrying out park administration or maintenance
operations, or complying with air traffic control
instructions.
(b) Flights by Military Aircraft.--This Act shall not apply
to flights by military aircraft, except that the Secretary of
Defense is encouraged to work jointly with the Secretary of
Transportation and the Secretary of Interior in pursuing
means to mitigate the impact of military flights over units.
(c) Flights for Commercial Aerial Photography.--The
Director and the Administrator shall jointly develop
restrictions and fee schedules for aircraft or rotorcraft
engaged in commercial aerial photography over units at
altitudes that the Director and the Administrator determine
will impact adversely the resources and values of affected
units.
SEC. 9. NATIONAL PARK OVERFLIGHT ADVISORY COUNCIL.
(a) Establishment.--There is established a commission to be
known as the ``National Park Overflight Advisory Council''.
(b) Membership.--
(1) In general.--The Council shall be comprised of members
from each of the following groups, appointed jointly by the
Director and the Administrator: [[Page S8113]]
(A) Environmental or conservation organizations, citizens'
groups, and other groups with similar interests.
(B) The commercial air tour industry and organizations with
similar interests.
(C) Representatives of departments or agencies of the
Federal Government.
(D) Such other persons as the Administrator and the
Director consider appropriate.
(c) Duties.--The Council shall--
(1) determine the effects of commercial air tour flights in
the airspace over the units on the environment of the units;
(2) determine the economic effects of restrictions or
prohibitions on the flights;
(3) solicit and receive comments from interested
individuals and groups on the flights;
(4) develop recommendations for means of reducing the
adverse effects of the flights on the units;
(5) explore financial and other incentives that could
encourage manufacturers to advance the state-of-the-art in
quiet aircraft and rotorcraft technology and encourage
commercial air tour operators to implement the technology in
flights over units;
(6) provide comments and recommendations to the Director
and the Administrator under section 4;
(7) provide advice or recommendations to the Director, the
Administrator, and other appropriate individuals and groups
on matters relating to flights over units; and
(8) carry out such other activities as the Director and the
Administrator jointly consider appropriate.
(d) Meetings.--The Council shall first meet not later than
180 days after the date of enactment of this Act, and shall
meet thereafter at the call of a majority of the members of
the Council.
(e) Administration.--
(1) Compensation of non-federal members.--Members of the
Council who are not officers or employees of the Federal
Government shall serve without compensation for their work on
the Council, but shall be allowed travel expenses, including
per diem in lieu of subsistence, in the same manner as
persons employed intermittently in the Government service
under section 5703(b) of title 5, United States Code, to the
extent funds are available therefor.
(2) Compensation of federal members.--Members of the
Council who are officers or employees of the Federal
Government shall serve without compensation for their work on
the Council other than that compensation received in their
regular public employment, but shall be allowed travel
expenses, including per diem in lieu of subsistence, as
authorized by law, to the extent funds are available
therefor.
(f) Reports.--The Council shall annually submit to
Congress, the Administrator, and the Director a report that--
(1) describes the activities of the Council under this
section during the preceding year; and
(2) sets forth the findings and recommendations of the
Council on matters related to the mitigation of the effects
on units of flights of commercial air tour operators over
units.
(g) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
the provisions of this section.
SEC. 10. EXEMPTION FOR STATE OF ALASKA.
Nothing in this Act shall affect--
(1) the management of units in the State of Alaska; or
(2) any aircraft operations over or within units in the
State of Alaska.
______
By Mr. BRADLEY:
S. 906. A bill to amend title 18, United States Code, to add multiple
deaths as an aggravating factor in determining whether a sentence of
death is to be imposed on a defendant, and for other purposes; to the
Committee on the Judiciary.
the death penalty act of 1995
Mr. BRADLEY. Mr. President, I introduce a bill that will make
multiple murders an aggravating factor in determining whether a
sentence of death is justified.
Mr. President, on March 21, 1995, Christopher Green murdered four
people and critically injured another in the robbery of a postal
substation in my hometown of Montclair, NJ. Two postal workers, Ernest
Spruill and Scott Walensky, and two customers, Robert Leslie and George
Lomaga, were forced into a back room and made to lie down on the floor.
They were then shot in the back of their heads multiple times at point
blank range, execution-style, with a 9-millimeter Taurus semiautomatic
pistol containing a 15-round capacity magazine. The magazine contained
deadly, flesh-ripping Black Talon bullets which expand upon impact with
human tissue. A third customer, David Grossman, entered the post office
as the robbery was in progress. He was shot in the face. By the grace
of God, however, he survived the attack.
Yesterday in Federal court Christopher Green admitted his guilt in
intentionally murdering Ernest Spruill, Scott Walensky, Robert Leslie,
and George Lomaga, and of attempting to kill David Grossman. He told
the court that he had worked for the Montclair Post Office for parts of
1991, 1992, and 1993, and had dealings with the substation where the
crime occurred. Mr. President, Christopher Green further admitted that
he knew that the substation had minimal security measures in place, and
that thousands of dollars in cash were kept at the substation. He also
stated in court that he knew Ernest Spruill and Scott Walensky.
Mr. President, Christopher Green used a 9-millimeter Taurus
semiautomatic pistol containing deadly Black Talon bullets. You may
recall that Black Talon bullets produce razor-sharp, reinforced radial
petals that expand upon impact into a mushroom or claw configuration,
producing maximum tissue damage in the wake of the penetrating core.
These bullets are designed for one purpose and that is to kill the
intended target. Mr. President, Christopher Green admitted yesterday
that he knew that the bullets that he possessed during the robbery--
Black Talon bullets--had the propensity to inflict tremendous internal
damage when he viciously murdered Ernest Spruill, Scott Walensky,
Robert Leslie, and George Lomaga, and attempted to kill David Grossman.
Mr. President, for committing this horrible crime, Christopher Green
will be sentenced to life in prison without the possibility of parole.
While he will never walk the streets of America as a free citizen
again, Mr. President, the U.S. attorney for the District of New Jersey
expressed frustration that her ability to seek the death penalty in
this case was limited because the death penalty statute does not list
multiple murders as an aggravating factor.
Mr. President, the determination of whether the death penalty is to
apply is made in a separate trial following conviction. A jury must
unanimously find certain statutorily defined aggravating factors to
justify the imposition of the death penalty. Where the commission of a
homicide occurs, such factors include, among others; first, a previous
conviction of a violent felony involving a firearm; second, two
previous felony drug offense convictions; or third, the murder of high
public officials, including the President, as noted by the U.S.
attorney for the District of New Jersey, ``[i]nexplicably,
multiple murder--even execution style murder--is not listed in the law
as an aggravating factor.''
In order to fix this glaring limitation in Federal death penalty law,
Mr. President, this bill would add multiple murders to the list of
aggravating factors presently available to determine whether a sentence
of death can be imposed on a defendant who commits homicide. When
Christopher Green purchased the weapon used in this mass murder, police
performed a background check and found that Green had no criminal
record. Because he had no prior criminal record, the U.S. attorney was
severely limited in her ability to seek the death penalty. This bill
will therefore strengthen the death penalty law by providing that those
who commit atrocious multiple murders will be prosecuted under the
death penalty statute, irrespective of whether they have prior criminal
records.
Mr. President, I believe that the death penalty should be available
where an individual commits multiple murders. The senseless spiral of
violence burns in many places. No one is immune. Indeed, the mass
murders in Montclair occurred in a community that was described in the
recent issue of New Jersey Monthly as ``a desirable community where
parents feel safe allowing young children to ride their bicycles around
town.'' Because of this epidemic of violence, every tool in our legal
arsenal, including the death penalty, must be employed to make our
communities safe.
Mr. President, the horror and devastation of violence impacts our
communities in immeasurable ways. I was in Montclair recently, and I
met with the widow of one of the victims. As I spoke with her, I saw
the pain and despair in her eyes. I felt
her anger, hurt, and confusion. Mr. President, her expressions
communicated to me her yearning to understand exactly why this horrible
event could claim her husband and devastate her life in this great
country of ours. As I departed Montclair, Mr. President, I promised
[[Page S8114]] her that I would continue to do everything in my power
to return our communities to places where ``parents feel safe allowing
young children to ride their bicycles around town.'' This bill, Mr.
President, is one more installment of that promise.
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. 906
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. MULTIPLE DEATHS AS AGGRAVATING FACTOR.
Section 3592(c) of title 18, United States Code, is amended
by adding at the end the following new paragraph:
``(16) Multiple deaths.--The death, or injury resulting in
death, of more than 1 person, occurred during the commission
of the crime.''.
______
By Mr. MURKOWSKI (for himself, Mr. Leahy, Mr. Campbell, Mr. Kyl,
Mr. Brown, Mr. Gregg, Mr. Craig, and Mr. Domenici):
S. 907. A bill to amend the National Forest Ski Area Permit Act of
1986 to clarify the authorities and duties of the Secretary of
Agriculture in issuing ski area permits on National Forest System lands
and to withdraw lands within ski area permit boundaries from the
operation of the mining and mineral leasing laws; to the Committee on
Energy and Natural Resources.
forest service land legislation
Mr. MURKOWSKI. Mr. President, I am today introducing
legislation to resolve a longstanding problem ski areas permittees on
Forest Service land have encountered with the fee system the Forest
Service developed to calculate their rental fees. This legislation
creates a new and simplified ski area fee system to calculate rental
fees for these ski areas for use of the national forest lands.
This same fee system legislation passed the Senate during the 102d
Congress but time ran out before the legislation was considered in the
House. This proposal was determined to be revenue neutral to the United
States by the Congressional Budget Office. The ski area permittees
support this proposal because it is revenue neutral and at the same
time collects their fees utilizing a simplified formula that everyone
can understand. The Forest Service manual and handbook currently
contain over 40 pages of guidelines on the currently utilized fee
system. Ski area permittees and the public have a significant
difficulty understanding this system. The new fee system that will be
created by this legislation is set out on one page and is easy for
everyone to understand.
This legislation continues to receive bipartisan support and I hope
that more Senators will join our effort to bring some common sense to
how ski areas calculate their rental fees on the national forests. This
legislation will reduce some of the management problems of the Forest
Service. This simplification of the ski area fee system will eliminate
the need for the Forest Service to apply and audit the complex rental
fee system that they now have in their manual. The new fee system in
this proposed legislation will reduce the fee system to a simple
formula based on gross revenue of the ski area permittee and from
clearly defined sources. Therefore there will be a significant
reduction in the bookkeeping and administrative tasks for both the
Forest Service and the ski areas.
I hope that hearing can be held soon on this legislation so that the
new ski area fee system can be put in place as soon as possible.
Simplification of this fee system is consistent with reinvention and
downsizing the Federal Government.
______
By Mr. LIEBERMAN:
S. 909. A bill to amend part I of title 35, United States Code, to
provide for the protection of inventors contracting for invention
development services; to the Committee on the Judiciary.
the inventor protection act of 1995
Mr. LIEBERMAN. Mr. President, today, I am introducing the
Inventor Protection Act of 1995, which is intended to plug a leak in
the longrunning pipeline of American ingenuity, and to make sure that
inventors are free to pursue their dreams, without losing their money
to conartists.
As Americans, we live in the most inventive society on Earth. From
Franklin to Edison to Henry Ford and to Steven Jobs, we have a long
tradition of dreamers, tinkerers and creators, working in basements and
garages, motivated by the pervasive quest to build a better mousetrap.
The very symbol of a new idea, which is the light bulb, is, of course,
an American invention.
The Founding Fathers even recognized, as we sometimes forget, the
importance of protecting the inventive spirit. In article I, section 8
of the Constitution of the United States, they empowered Congress to
create a Federal patent system to promote the progress of science and
useful arts.
Now, more than two centuries later, in an era of intense global
competition, that mission has become even more important. We must do
all we can to make sure good ideas get to market. Unfortunately,
though, for too many inventors today, the path to commercialization is
strewn with hazards.
It has been said that a person seeking to build a better mousetrap
today will probably run into capital and material shortages, patent
infringement lawsuits, work stoppages, product liability suits, and the
omnipresent burden of taxes. But there is another threat out there, one
that is as resilient and longstanding as the American spirit of
ingenuity, and that threat is the American scam artist.
Each year thousands of inventors lose tens of millions of dollars to
deceptive invention marketing companies that take advantage of their
ideas and their dreams. Last year, as then-chairman of the Subcommittee
on Regulation and Governmental Affairs, I held a hearing on the
problems presented by the invention marketing industry. Witness after
witness testified how dozens of companies, under broad claims of
helping inventors, have actually set up schemes in which inventors
spend thousands of dollars for services to market their invention--a
service that companies regularly fail to provide. State and Federal
laws have been vague and ineffective in this area, leaving consumers
virtually helpless and lacking the information they need to make truly
informed decision about how to develop and sell their idea.
To understand the scope of the problem, let me describe how the fraud
works: These companies attract inventors through ads that include a
toll-free number that an inventor calls to request an invention
evaluation form. The inventor returns the form, which includes a full
description of their designs, with the expectation that it will be
evaluated by qualified experts.
In fact, according to hearing testimony by the FTC and the Patent and
Trademark Office [PTO], no expert evaluation occurs. Instead, the form
is referred to a salesperson who calls the inventor and tires to
convince the inventor to purchase a product research report, which the
inventor is led to believe will evaluate the patentability and
commercial potential of the idea. The price for the product research
report is generally around $500. Instead of an informative, indepth
study, the inventor receives a boilerplate report of little value which
invariably concludes that the idea is patentable. That statement
typically is deceiving since almost any idea may be patented. However,
the patent may merely protect the design of the idea, not the function
or usefulness. Such a design patent
is typically worthless in attempting to commercialize the product.
The next step in the scheme involves convincing the inventor to
purchase patent and marketing services. Again, the services are useless
and quite expensive. The average charge is $7,000 and ranges as high as
$10,000. For this sum, the inventor routinely receives a few generic
press releases about the idea and a brief mention in catalogs exhibited
at various trade shows. In almost every case, this marketing plan is
essentially worthless.
While there are no official figures available on how many people
annually contract with invention marketers, one person who works at a
legitimate non-profit center that helps inventors testified that he
estimates the number to exceed 25,000. Given an average cost of $7,000
for services that companies charge, that would represent a total of
$175 million in revenue for these companies, with virtually no benefit
to inventors. [[Page S8115]]
The legislation that I propose to crack down on these scam artists is
simple, yet stringent. It uses a multi-faceted approach to separate the
legitimate companies from the fraudulent and guarantee real protection
for America's inventors.
To start with, I propose requiring invention marketing companies to
register with the U.S. Patent and Trademark Office. This registration
requirement would be fully funded by fees paid by these companies, and
would take advantage of the existing structure already set up for
registering attorneys to administer it. As a result, no new Federal
spending would be necessary, nor would any new bureaucracy need be
created.
The companies would also be required to provide a complete list of
their officers so shady characters could not hide behind ever-changing
corporate names. One former salesperson for an invention marketing
company said his company changed names three times in less than 6
years: ``To evade consumer action, the MO was to frequently change
company names * * * You forgot sometimes what company you are working
for.'' Complaints against these companies will also be tracked.
In addition, my bill creates standards for contracts between
inventors and invention developers to help inventors in making informed
decisions about developers. One of these standards would require
companies to attach a cover sheet to every contract that lists the
number of applicants the company has rejected, which is usually very
small, and the number of customers who have actually earned a profit
from their inventions, which is also usually very small. If the
invention marketing company fails to meet the guidelines set forth in
the bill, customers can void these contracts, and even sue for damages
in Federal court.
Mr. President, this legislation is just the type of law that
Americans are clamoring for. It addresses a specific identified problem
that can be best solved by the Federal Government and does so without
creating a new bureaucracy. Although several States have passed
legislation to address the problem, they have largely failed to wipe
out this threat because the companies can simply move to States with
weak laws and lax enforcement. Best of all, this legislation will not
cost American taxpayers a cent; the entire burden will be covered by
the registration fees called for in the bill.
I urge my colleagues to support this bill to ensure that inventors as
well as their ideas are protected.
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. 909
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 ``Inventor Protection Act of
1995''.
SEC. 2. INVENTION DEVELOPMENT SERVICES.
Part I of title 35, United States Code, is amended by
adding after chapter 4 the following new chapter:
``CHAPTER 5--INVENTION DEVELOPMENT SERVICES
``Sec.
``51. Definitions.
``52. Contracting requirements.
``53. Standard provisions for cover notice.
``54. Reports to customer required.
``55. Mandatory contract terms.
``56. Remedies.
``57. Enrollment of invention developers.
``58. Records of complaints.
``59. Enrollment fee.
``60. Suspension or exclusion from enrollment.
``61. Unenrolled representation as invention developer.
``62. Rule of construction.
``Sec. 51. Definitions
``For purposes of this chapter, the term--
``(1) `contract for invention development services' means a
contract by which an invention developer undertakes invention
development services for a customer;
``(2) `customer' means any person, firm, partnership,
corporation, or other entity who enters into a contract for
invention development services;
``(3) `invention developer' means any person, firm,
partnership or corporation, who offers to perform or performs
for a customer any act described under paragraph (4),
except--
``(A) any department or agency of the Federal, State, or
local government;
``(B) any nonprofit, charitable, scientific, or educational
organization, qualified under applicable State law or
described under section 170(b)(1)(A) of the Internal Revenue
Code of 1986; or
``(C) any person duly registered and in good standing
before the United States Patent and Trademark Office acting
within the scope of that person's registration to practice
before the United States Patent and Trademark Office; and
``(4) `invention development services' means, with respect
to an invention submitted by a customer, any act involved
in--
``(A) evaluating the invention to determine its
protectability as some form of intellectual property;
``(B) evaluating the invention to determine its commercial
potential; or
``(C) marketing, brokering, licensing, selling, or
promoting the invention or a product or service in which the
invention is incorporated or used.
``Sec. 52. Contracting requirements
``(a)(1) Every contract for invention development services
shall be in writing and shall be subject to the provisions of
this chapter. A copy of the signed written contract shall be
given to the customer at the time the customer enters into
the contract.
``(2) If a contract is entered into for the benefit of a
third party, such party shall be considered a customer for
the purposes of this chapter.
``(b) The invention developer shall--
``(1) state in a written document, at the time a customer
enters into a contract for invention development services,
whether the usual business practice of the invention
developer is to--
``(A) seek more than 1 contract in connection with an
invention; or
``(B) seek to perform services in connection with an
invention in 1 or more phases, with the performance of each
phase covered in 1 or more subsequent contracts; and
``(2) supply to the customer a copy of the written document
together with a written summary of the usual business
practices of the invention developer including--
``(A) the usual business terms of contracts; and
``(B) the approximate amount of the usual fees of the
invention developer or other consideration, that may be
required from the customer for each of the services provided
by the developer.
``(c)(1) Notwithstanding any contractual provision to the
contrary, no payment for invention development services shall
be required, accepted, or received until the expiration of a
period of 5 business days beginning on the date on which the
customer receives a copy of the contract for invention
development services signed by the invention developer and
the customer.
``(2) Delivery of a promissory note, check, bill of
exchange, or negotiable instrument of any kind to the
invention developer or to a third party for the benefit of
the invention developer, irrespective of the date or dates
appearing in such instrument, shall be deemed payment
received by the invention developer on the date received for
the purpose of this section.
``(d)(1) Until 5 business days after the payment described
under subsection (c) is made, the parties shall have the
option to refuse to enter into the contract as provided under
paragraphs (2) and (3).
``(2) The customer may exercise the option by--
``(A) refraining from making payment to the invention
developer; or
``(B) providing written notice of the refusal to the
invention developer.
``(3) The invention developer may exercise the option by
giving to the customer a written notice of the exercise of
the option. The written notice shall become effective upon
receipt by the customer.
``Sec. 53. Standard provisions for cover notice
``(a) Every contract for invention development services
shall have a conspicuous and legible cover sheet attached
with the following notice imprinted thereon in boldface type
of not less than 12-point size:
```YOU ARE NOT REQUIRED TO MAKE ANY PAYMENTS UNDER THIS
CONTRACT UNTIL FIVE (5) BUSINESS DAYS AFTER YOU SIGN THIS
CONTRACT AND RECEIVE A COMPLETED COPY OF IT.
```THE TOTAL NUMBER OF INVENTIONS EVALUATED BY THE
INVENTION DEVELOPER FOR COMMERCIAL POTENTIAL IN THE PAST FIVE
(5) YEARS IS __________. OF THAT NUMBER, __________ RECEIVED
POSITIVE EVALUATIONS AND __________ RECEIVED NEGATIVE
EVALUATIONS.
```IF YOU ASSIGN EVEN A PARTIAL INTEREST IN THE INVENTION
TO THE INVENTION DEVELOPER, THE INVENTION DEVELOPER MAY HAVE
THE RIGHT TO SELL OR DISPOSE OF THE INVENTION WITHOUT YOUR
CONSENT AND MAY NOT HAVE TO SHARE THE PROFITS WITH YOU.
```THE TOTAL NUMBER OF CUSTOMERS WHO HAVE CONTRACTED WITH
THE INVENTION DEVELOPER IN THE PAST FIVE (5) YEARS IS
__________. THE TOTAL NUMBER OF CUSTOMERS KNOWN BY THIS
INVENTION DEVELOPER TO HAVE RECEIVED, BY VIRTUE OF THIS
INVENTION DEVELOPER'S PERFORMANCE, AN AMOUNT OF MONEY IN
EXCESS OF THE AMOUNT PAID BY THE CUSTOMER TO THIS INVENTION
DEVELOPER IS ______________. THE NAMES AND ADDRESSES OF SUCH
CUSTOMERS, IF ANY, SHALL BE PROVIDED TO ANY PERSON REQUESTING
IT.
```THE OFFICERS OF THIS INVENTION DEVELOPER HAVE
COLLECTIVELY OR [[Page S8116]] INDIVIDUALLY BEEN AFFILIATED
IN THE LAST TEN (10) YEARS WITH THE FOLLOWING INVENTION
DEVELOPMENT COMPANIES: (LIST THE NAMES AND ADDRESSES OF ALL
PREVIOUS INVENTION DEVELOPMENT COMPANIES WITH WHICH THE
PRINCIPAL OFFICERS HAVE BEEN AFFILIATED AS OWNERS, AGENTS, OR
EMPLOYEES). YOU ARE ENCOURAGED TO CHECK WITH THE UNITED
STATES PATENT AND TRADEMARK OFFICE, THE FEDERAL TRADE
COMMISSION, YOUR STATE ATTORNEY GENERAL'S OFFICE, AND THE
BETTER BUSINESS BUREAU FOR ANY COMPLAINTS FILED AGAINST ANY
OF THESE COMPANIES.
```YOU ARE ENCOURAGED TO CONSULT WITH AN ATTORNEY OF YOUR
OWN CHOOSING BEFORE SIGNING THIS CONTRACT. BY PROCEEDING
WITHOUT THE ADVICE OF A QUALIFIED ATTORNEY, YOU COULD LOSE
ANY RIGHTS YOU MIGHT HAVE IN YOUR IDEA OR INVENTION.'.
``(b)(1) In addition to the requirements of subsection (a),
every contract for invention development services shall
contain the appropriate matter under paragraph (2) or (3).
``(2) For invention developers who are enrolled the
contract shall contain the following:
```(NAME OF INVENTION DEVELOPER) IS ENROLLED WITH THE
COMMISSIONER OF PATENTS AND TRADEMARKS AND BEARS ENROLLMENT
NUMBER ____. THE FACT THAT AN INVENTION DEVELOPER IS ENROLLED
WITH THE COMMISSIONER OF PATENTS AND TRADEMARKS AS REQUIRED
BY LAW IS NOT AN ENDORSEMENT OF THE INVENTION DEVELOPER NOR
IS IT AN INDICATOR THAT THEY ARE AUTHORIZED BY THE
COMMISSIONER TO REPRESENT APPLICANTS OR OTHER PARTIES BEFORE
THE PATENT AND TRADEMARK OFFICE IN PATENT, TRADEMARK, OR
OTHER MATTERS.'.
``(3) For invention developers who are not enrolled the
contract shall contain the following:
```(NAME OF INVENTION DEVELOPER) IS NOT ENROLLED WITH THE
COMMISSIONER OF PATENTS AND TRADEMARKS AS AN INVENTION
DEVELOPER. BY NOT SO ENROLLING, (NAME OF INVENTION DEVELOPER)
HAS INDICATED THAT IT WILL NOT OFFER TO PERFORM OR PERFORM
FOR A CUSTOMER ANY ACT INVOLVED IN FILING FOR AND OBTAINING
PATENT, TRADEMARK, OF DESIGN PROTECTION.'.
``(c) The cover notice shall contain the items required
under subsections (a) and (b) and the name, primary office
address, and local office address of the invention developer,
and may contain no other matter.
``Sec. 54. Reports to customer required
``With respect to every contract for invention development
services, the invention developer shall deliver to the
customer at the address specified in the contract, at least
at quarterly intervals throughout the term of the contract, a
written report that identifies the contract and includes--
``(1) a full, clear, and concise description of the
services performed to the date of the report and of the
services yet to be performed and names of all persons who
shall perform the services; and
``(2) the name and address of each person, firm, or
corporation to whom the subject matter of the contract has
been disclosed, the reason for each and every disclosure, the
nature of the disclosure, and copies of all responses
received as a result of those disclosures.
``Sec. 55. Mandatory contract terms
``(a) Each contract for invention development services
shall include in boldface type of not less than 12-point
size--
``(1) the terms and conditions of payment and contract
termination rights required under section 52;
``(2) a statement that the customer may avoid entering into
the contract by not making a payment to the invention
developer;
``(3) a full, clear, and concise description of the
specific acts or services that the invention developer
undertakes to perform for the customer;
``(4) a statement as to whether the invention developer
undertakes to construct, sell, or distribute one or more
prototypes, models, or devices embodying the invention of the
customer;
``(5) the full name and principal place of business of the
invention developer and the name and principal place of
business of any parent, subsidiary, agent, independent
contractor, and any affiliated company or person that may
perform any of the services or acts that the invention
developer undertakes to perform for the customer;
``(6) if any oral or written representation of estimated or
projected customer earnings is given by the invention
developer (or any agent, employee, officer, director,
partner, or independent contractor of such invention
developer) a statement of that estimation or projection and a
description of the data upon which such representation is
based;
``(7)(A) the name and address of the custodian of all
records and correspondence relating to the contracted for
invention development services, and a statement that the
invention developer is required to maintain all records and
correspondence relating to performance of the invention
development services for that customer for a period of not
less than 2 years after expiration of the term of the
contract for invention development services; and
``(B) a statement that before destruction or disposal of
the records and correspondence, the invention developer is
required to notify the customer and make such records and
correspondence available to the customer at a reasonable
cost; and
``(8) a statement setting forth a time schedule for
performance of the invention development services, including
an estimated date by which performance of the invention
development services is expected to be completed.
``(b) To the extent that the description of the specific
acts or services affords discretion to the invention
developer as to what specific acts or services shall be
performed, the invention developer shall be deemed a
fiduciary.
``(c) Records and correspondence described under subsection
(a)(7) shall be made available to the customer or the
representative of the customer for review and copying at the
customer's reasonable expense on the invention developer's
premises during normal business hours upon 7 days written
notice.
``Sec. 56. Remedies
``(a)(1) Any contract for invention development services
that does not comply with the applicable provisions of this
chapter shall be voidable at the option of the customer.
``(2) Any contract for invention development services
entered into in reliance upon any false, fraudulent, or
misleading information, representation, notice, or
advertisement of the invention developer (or any agent,
employee, officer, director, partner or independent
contractor of such invention developer) shall be voidable at
the option of the customer.
``(3) Any waiver by the customer of any provision of this
chapter shall be deemed contrary to public policy and shall
be void and unenforceable.
``(4) Any contract for invention development services made
by an unenrolled invention developer, as provided under
section 57, shall be voidable at the option of the customer.
``(b)(1) Any customer who is injured by a violation of this
chapter by an invention developer or by any false or
fraudulent statement, representation, or omission of material
fact by an invention developer (or any agent, employee,
director, officer, partner or independent contractor of such
invention developer) or by failure of an invention developer
to make all the disclosures required under this chapter, may
recover in a civil action against the invention developer (or
the officers, directors, or partners of such invention
developer) in addition to reasonable costs and attorneys'
fees, the greater of--
``(A) $5,000; or
``(B) the amount of actual damages sustained by the
customer.
``(2) Notwithstanding paragraph (1), the court may increase
damages up to 3 times the amount awarded.
``(c) For the purpose of this section, substantial
violation of any provision of this chapter by an invention
developer or execution by the customer of a contract for
invention development services in reliance on any false or
fraudulent statements, representations, or material omissions
shall establish a rebuttable presumption of injury.
``Sec. 57. Enrollment of invention developers
``(a) The Commissioner of Patents and Trademarks shall
require invention developers that offer to perform or perform
for a customer any act involved in filing for and obtaining
utility, design, or plant patent or trademark protection to
enroll annually with the Patent and Trademark Office.
Invention developers that offer to perform or perform such
acts through an agent, employee, officer, partner, or
independent contractor shall also enroll.
``(b) The enrollment required under subsection (a) shall
include disclosure of--
``(1)(A) the names and addresses of all principal officers
of the invention developer; and
``(B) the names and principal place of business of all
invention developers with which the principal officers have
been affiliated during the 10-year period before the date of
enrollment; and
``(2) require disclosure of any administrative, civil, or
criminal action taken against the invention developer (or any
officer, director, or partner of such invention developer) by
any agent of Federal, State, or local government.
``(c) Subject to the approval of the Secretary of Commerce,
the Commissioner may prescribe regulations that--
``(1) govern the conduct of invention developers and may
require an invention developer, before enrollment, to
demonstrate good reputation and necessary qualifications to
render to customers or other persons valuable service,
advice, and assistance in the invention development process;
``(2) provide which agents, employees, officers, partners,
independent contractors or other individuals of an invention
developer are required to enroll under subsection (a); and
``(3) provide--
``(A) what information and records held or retained by the
invention developer shall be required to be made available to
the Commissioner; and
``(B) the conditions under which such information and
records shall be made available.
``Sec. 58. Records of complaints
``(a) The Commissioner shall make all complaints received
by the Patent and [[Page S8117]] Trademark Office involving
invention developers publicly available.
``(b) The Commissioner may request complaints relating to
invention development services from any Federal or State
agency and include such complaints in the records maintained
under subsection (a).
``Sec. 59. Enrollment fee
``The Commissioner may establish reasonable fees to cover
all costs and expenses to carry out the provisions of this
chapter.
``Sec. 60. Suspension or exclusion from enrollment
``(a) The Commissioner may, after notice and opportunity
for a hearing, suspend or exclude, either generally or in any
particular case, from enrollment as an invention developer,
any person, firm, partnership, or corporation--
``(1) demonstrated to be--
``(A) incompetent;
``(B) disreputable;
``(C) liable for gross misconduct; or
``(D) not in compliance with the regulations established
under this chapter; or
``(2) who shall in any manner deceive, mislead, defraud, or
threaten any customer.
``(b) The reasons for any such suspension or exclusion
shall be duly recorded.
``(c) The United States District Court for the District of
Columbia under such conditions and upon such proceedings as
by rule determined by such court, may review the action of
the Commissioner upon the petition of the invention developer
so suspended or excluded.
``Sec. 61. Unenrolled representation as invention developer
``Whoever, not being enrolled as an invention developer
with the Patent and Trademark Office, holds himself out or
permits himself to be held out as so enrolled, or as being
qualified to provide invention development services, or
provides invention development services shall be guilty of a
misdemeanor and fined not more than $10,000 for each offense.
``Sec. 62. Rule of construction
``Except as expressly provided in this chapter, no
provision of this chapter shall be construed to affect any
obligation, right, or remedy provided under any other Federal
or State law.''.
SEC. 3. TECHNICAL AND CONFORMING AMENDMENT.
The table of chapters for part I of title 35, United States
Code, is amended by adding after the item relating to chapter
4 the following:
``5. Invention development services...........................51''.....
SEC. 4. EFFECTIVE DATE.
(a) In General.--Except as provided in subsection (b), this
Act and the amendments made by this Act shall take effect 60
days after the date of the enactment of this Act.
(b) Certain Requirements.--The provisions of sections
53(b), 56(a)(4), 57, 59, 60, and 61 of title 35, United
States Code (as added by section 2 of this Act) shall take
effect 1 year after the date of the enactment of this
Act.
______
By Mr. CHAFEE (for himself, and Mr. Baucus):
S. 910. A bill to amend the Internal Revenue Code of 1986 to provide
an election to exclude from the gross estate of a decedent the value of
certain land subject to a qualified conservation easement, and to make
technical changes to alternative valuation rules; to the Committee on
Finance.
the american farm and ranch protection act of 1995
Mr. CHAFEE. Mr. President, a serious environmental problem facing the
country today is the loss of open space to development. All across the
country, farms, ranches, forests, and wetlands are forced to give way
to the pressures for new office buildings, shopping malls, and housing
developments.
America is losing over 4 square miles of land to development every
day. In Rhode Island, over 11,000 acres of farmland have been lost to
development since 1974. In many instances, this is simply the natural
outgrowth of urbanization of our society. Other times it is the direct
result of improper planning at the State and local levels.
But frequently, the pressure comes from the need to raise funds to
pay estate taxes. For those families where undeveloped land represents
a significant portion of the estate's total value, the need to pay the
tax creates powerful pressure to develop or sell off part or all of the
land or to liquidate the timber resources of the land. Because land is
appraised by the Internal Revenue Service according to its highest and
best use, and such use is often its development value, the effect of
the tax is to make retention of undeveloped land difficult.
In addition, our current estate tax policy results in complicated
valuation disputes between the donor's estate and the Internal Revenue
Service. In many cases, the additional costs incurred as a result of
these disagreements may cause a potential donor of a conservation
easement to decide not to make the contribution.
These open spaces improve the quality of life for Americans
throughout the great Nation and provide important habitat for fish and
wildlife. The question is how do we conserve our most valuable resource
during this time of significant budget constraints.
Mr. President, I think we need to restructure the Nation's estate tax
laws to remove the disincentive for private property owners to conserve
environmentally significant land. The American Farm and Ranch
Protection Act, with I am introducing today along with Senator Baucus,
will help to achieve this goal by providing an exemption from the
estate tax for the value of land that is subject to a qualified,
permanent conservation easement.
This bill is similar to legislation that we introduced last year. The
principles involved in this bill have been endorsed by the Piedmont
Envionmental Council, the National Audubon Society, the American Farm
Bureau, the Land Trust Alliance, and the National Trust for Historic
Preservation.
The bill excludes land subject to a conservation easement from the
estate and gift taxes. Development rights retained by the family--most
frequently the ability to use the property for a commercial purpose--
remain subject to the estate tax.
In order to target the incentives under this bill to those areas that
are truly at risk for development, the bill is limited to land that
falls within a 50-mile radius of a metropolitan area, a national park
or a national wilderness area.
Conservation easements, which are entirely voluntary, are agreements
negotiated by landowners in which a restriction upon the future use of
land is imposed in order to conserve those aspects of the land that are
publicly significant. To qualify for the estate tax exemption under
this bill, such easements must be perpetual and must be made to
preserve open space, to protect the natural habitat of fish, wildlife
or plants, to meet a governmental conservation policy, or to preserve
an historical important land area.
I urge my colleagues to join me in this effort to save
environmentally sensitive open spaces.
Mr. President, I ask unanimous consent that a copy of the bill and a
brief explanation of the legislation be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 910
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 ``American Farm and Ranch
Protection Act of 1995''.
SEC. 2. TREATMENT OF LAND SUBJECT TO A QUALIFIED CONSERVATION
EASEMENT.
(a) Estate Tax With Respect to Land Subject to a Qualified
Conservation Easement.--Section 2031 of the Internal Revenue
Code of 1986 (relating to the definition of gross estate) is
amended by redesignating subsection (c) as subsection (d) and
by inserting after subsection (b) the following new
subsection:
``(c) Estate Tax With Respect to Land Subject to a
Qualified Conservation Easement.--
``(1) In general.--If the executor makes the election
described in paragraph (4), then, except as otherwise
provided in this subsection, there shall be excluded from the
gross estate the value of land subject to a qualified
conservation easement.
``(2) Treatment of certain indebtedness.--
``(A) In general.--The exclusion provided in paragraph (1)
shall not apply to the extent that the land is debt-financed
property.
``(B) Definitions.--For purposes of this paragraph--
``(i) Debt-financed property.--The term `debt-financed
property' means any property with respect to which there is
an acquisition indebtedness (as defined in clause (ii)) on
the date of the decedent's death.
``(ii) Acquisition indebtedness.--The term `acquisition
indebtedness' means, with respect to debt-financed property,
the unpaid amount of--
``(I) the indebtedness incurred by the donor in acquiring
such property,
``(II) the indebtedness incurred before the acquisition of
such property if such indebtedness would not have been
incurred but for such acquisition,
``(III) the indebtedness incurred after the acquisition of
such property if such indebtedness would not have been
incurred but for such acquisition and the incurrence of such
indebtedness was reasonably foreseeable at the time of such
acquisition, except that indebtedness incurred after the
acquisition of such property is not acquisition indebtedness
[[Page S8118]] if incurred to carry on activities directly
related to farming, ranching, forestry, horticulture, or
viticulture, and
``(IV) the extension, renewal, or refinancing of an
acquisition indebtedness.
``(3) Treatment of retained development right.--
``(A) In general.--Paragraph (1) shall not apply to the
value of any development right retained by the donor in the
conveyance of a qualified conservation easement.
``(B) Termination of retained development right.--If every
person in being who has an interest (whether or not in
possession) in such land shall execute an agreement to
extinguish permanently some or all of any development rights
(as defined in subparagraph (D)) retained by the donor on or
before the date for filing the return of the tax imposed by
section 2001, then any tax imposed by section 2001 shall be
reduced accordingly. Such agreement shall be filed with the
return of the tax imposed by section 2001. The agreement
shall be in such form as the Secretary shall prescribe.
``(C) Additional tax.--Failure to implement the agreement
described in subparagraph (B) within 2 years of the
decedent's death shall result in the imposition of an
additional tax in the amount of the tax which would have been
due on the retained development rights subject to such
agreement. Such additional tax shall be due and payable on
the last day of the 6th month following the end of the 2-year
period.
``(D) Development right defined.--For purposes of this
paragraph, the term `development right' means the right to
establish or use any structure and the land immediately
surrounding it for sale (other than the sale of the structure
as part of a sale of the entire tract of land subject to the
qualified conservation easement), or other commercial purpose
which is not subordinate to and directly supportive of the
activity of farming, forestry, ranching, horticulture, or
viticulture conducted on land subject to the qualified
conservation easement in which such right is retained.
``(4) Election.--The election under this subsection shall
be made on the return of the tax imposed by section 2001.
Such an election, once made, shall be irrevocable.
``(5) Calculation of estate tax due.--An executor making
the election described in paragraph (4) shall, for purposes
of calculating the amount of tax imposed by section 2001,
include the value of any development right (as defined in
paragraph (3)) retained by the donor in the conveyance of
such qualified conservation easement. The computation of tax
on any retained development right prescribed in this
paragraph shall be done in such manner and on such forms as
the Secretary shall prescribe.
``(6) Definitions.--For purposes of this subsection--
``(A) Land subject to a qualified conservation easement.--
The term `land subject to a qualified conservation easement'
means land--
``(i) which is located in or within 50 miles of an area
which, on the date of the decedent's death, is--
``(I) a metropolitan area (as defined by the Office of
Management and Budget), or
``(II) a national park or wilderness area designated as
part of the National Wilderness Preservation System (unless
it is determined by the Secretary that land in or within 50
miles of such a park or wilderness area is not under
significant development pressure),
``(ii) which was owned by the decedent or a member of the
decedent's family at all times during the 3-year period
ending on the date of the decedent's death, and
``(iii) with respect to which a qualified conservation
easement is or has been made by the decedent or a member of
the decedent's family.
``(B) Qualified conservation easement.--The term `qualified
conservation easement' means a qualified conservation
contribution (as defined in section 170(h)(1)) of a qualified
real property interest (as defined in section 170(h)(2)(C)),
except that clause (iv) of section 170(h)(4)(A) shall not
apply, and the restriction on the use of such interest
described in section 170(h)(2)(C) shall include a prohibition
on commercial recreational activity.
``(C) Member of family.--The term `member of the decedent's
family' means any member of the family (as defined in section
2032A(e)(2)) of the decedent.
``(7) Application of this section to interests in
partnerships, corporations, and trusts.--The Secretary shall
prescribe regulations applying this section to an interest in
a partnership, corporation, or trust which, with respect to
the decedent, is an interest in a closely held business
(within the meaning of paragraph (1) of section 6166(b)).''
(b) Carryover Basis.--Section 1014(a) of such Code
(relating to basis of property acquired from a decedent) is
amended by striking the period at the end of paragraph (3)
and inserting ``, or'' and by adding after paragraph (3) the
following new paragraph:
``(4) to the extent of the applicability of the exclusion
described in section 2031(c), the basis in the hands of the
decedent.''
(c) Effective Date.--The amendments made by this section
shall apply to estates of decedents dying after December 31,
1995.
SEC. 3. GIFT TAX ON LAND SUBJECT TO A QUALIFIED CONSERVATION
EASEMENT.
(a) Gift Tax With Respect to Land Subject to a Qualified
Conservation Easement.--Section 2503 of the Internal Revenue
Code of 1986 (relating to taxable gifts) is amended by adding
at the end the following new subsection:
``(h) Gift Tax With Respect to Land Subject to a Qualified
Conservation Easement.--The transfer by gift of land subject
to a qualified conservation easement shall not be treated as
a transfer of property by gift for purposes of this chapter.
For purposes of this subsection, the term `land subject to a
qualified conservation easement' has the meaning given to
such term by section 2031(c), except that references to the
decedent shall be treated as references to the donor and
references to the date of the decedent's death shall be
treated as references to the date of the transfer by the
donor.''
(b) Effective Date.--The amendment made by this section
shall apply to gifts made after December 31, 1995.
SEC. 4. QUALIFIED CONSERVATION CONTRIBUTION IS NOT A
DISPOSITION.
(a) Qualified Conservation Contribution Is Not a
Disposition.--Subsection (c) of section 2032A of the Internal
Revenue Code of 1986 (relating to alternative valuation
method) is amended by adding at the end the following new
paragraphs:
``(8) Qualified conservation contribution is not a
disposition.--A qualified conservation contribution (as
defined in section 170(h)) by gift or otherwise shall not be
deemed a disposition under subsection (c)(1)(A).
``(9) Exception for real property is land subject to a
qualified conservation easement.--If qualified real property
is land subject to a qualified conservation easement (as
defined in section 2031(c)), the preceding paragraphs of this
subsection shall not apply.''
(b) Land Subject to a Qualified Conservation Easement Is
Not Disqualified.--Subsection (b) of section 2032A of such
Code (relating to alternative valuation method) is amended by
adding at the end the following subparagraph:
``(E) If property is otherwise qualified real property, the
fact that it is land subject to a qualified conservation
easement (as defined in section 2031(c)) shall not disqualify
it under this section.''
(c) Effective Date.--The amendments made by this section
shall apply with respect to contributions made, and easements
granted, after December 31, 1995.
SEC. 5. QUALIFIED CONSERVATION CONTRIBUTION WHERE SURFACE AND
MINERAL RIGHTS ARE SEPARATED.
(a) In General.--Section 170(h)(5)(B)(ii) of the Internal
Revenue Code of 1986 (relating to special rule) is amended to
read as follows:
``(ii) Special rule.--With respect to any contribution of
property in which the ownership of the surface estate and
mineral interests has been and remains separated,
subparagraph (A) shall be treated as met if the probability
of surface mining occurring on such property is so remote as
to be negligible.''
(b) Effective Date.--The amendment made by this section
shall apply with respect to contributions made after December
31, 1992, in taxable years ending after such date.
The American Farm and Ranch Protection Act of 1995
The American Farm and Ranch Protection Act protects family lands and
encourages the voluntary conservation of farmland, ranches, forest
land, wetlands, wildlife habitat, open space and other environmentally
sensitive property. It enables farmers and ranchers to continue to own
and work their land by eliminating the estate and gift tax burden that
threatens the current generation of owners. The bill does this in the
following ways:
By excluding from estate and gift taxes the value of land on which a
qualified conservation easement has been granted if the land is located
in or within a 50-mile radius of a metropolitan area, a National Park,
or a wilderness area that is part of the National Wilderness Area
System; and,
By clarifying that land subject to a qualified conservation easement
can also qualify for special use valuation under Code section 2032A.
The bill also contains a number of safeguards to ensure that the
benefits of the exclusion are not abused. These safeguards include the
following:
The easement must be perpetual and meet the requirements of Code
Section 170(h), governing deductions for charitable contributions of
easements;
Easements retaining the right to develop the property for commercial
recreational use would not be eligible, while other retained
development rights would be taxed;
Land excluded from the estate tax would receive a carryover, rather
than stepped-up, basis for purposes of calculating gain on a subsequent
sale;
The land must have been owned by the decedent or a member of the
decedent's family for at least 3 years immediately prior to the
decedent's death; and,
The easement must have been donated by the decedent or a member of
the decedent's family. [[Page S8119]]
The bill would be effective for decedents dying after December 31,
1995.
______
By Mr. ROBB:
S. 911. A bill to authorize the Secretary to issue a certificate of
documentation with appropriate endorsement for employment in the
coastwise trade of the United States for the vessel Sea Mistress; to
the Committee on Commerce, Science, and Transportation.
certification of documentation legislation
Mr. ROBB. Mr. President, I am introducing a bill today to
authorize the Coast Guard to issue the appropriate endorsement for the
vessel Sea Mistress--U.S. official number 696806--to engage in the
coastwise trade. This legislation is necessary to resolve a lapse in
the Sea Mistress's chain of title.
The Sea Mistress was built in the United States in Louisville, KY, by
Aluminum Cruisers, Inc. It is a 41-foot, high-speed houseboat, which is
currently being refurbished in the United States for the excursion
tourboat trade. In 1984, the Internal Revenue Service, seized the
vessel to secure an unpaid tax debt incurred by the original owner of
the vessel. This seizure has left a gap in the chain of title of the
vessel. The Coast Guard has informed the owner of Occoquan Tours that
if the gap is left unresolved, a coastwise endorsement cannot be issued
for the vessel, even though the owner is a U.S. citizen and the vessel
was built in the United States and is being refurbished locally.
The Congress passes a number of these technical bills every year. The
Sea Mistress was part of a package of similar legislative waivers which
passed the House of Representatives October of last year, but failed to
be enacted prior to the end of the session. I'm introducing the bill
today so that the Senate Commerce Committee may act upon it with the
upcoming coastwise bill this session.
______
By Mr. KOHL:
S. 912. A bill to amend the Internal Revenue Code of 1986 with
respect to the eligibility of veterans for mortgage revenue bond
financing, and for other purposes; to the Committee on Finance.
MORTGAGE REVENUE BOND FINANCING LEGISLATION
Mr. KOHL. Mr. President, I introduce a modified version of
legislation I introduced in February, S. 417, which will help Wisconsin
and several other States, including Oregon, Texas, Alaska, and
California, extend one of our most successful veterans programs to
Persian Gulf war participants and others. This legislation will amend
the eligibility requirements for mortgage revenue bond financing for
State veterans housing programs.
Wisconsin uses this tax-exempt bond authority to assist veterans in
purchasing their first home. Under rules adopted by Congress in 1984,
this program excluded from eligibility veterans who served after 1977.
This bill would remove that restriction.
Wisconsin and the other eligible States simply want to maintain a
principle that we in the Senate have also strived to uphold--that
veterans of the Persian Gulf war should not be treated less generously
than those of past wars. This bill will make that possible.
______
By Mr. HATCH (for himself, Mr. Inouye, Mr. McCain, and Mr.
Bennett):
S. 913. A bill to amend section 17 of the Act of August 27, 1954 (25
U.S.C. 677p), relating to the distribution and taxation of assets and
earnings, to clarify that distributions of rents and royalties derived
from assets held in continued trust by the Government, and paid to the
mixed-blood members of the Ute Indian tribe, their Ute Indian heirs, or
Ute Indian legatees, are not subject to Federal or State taxation at
the time of distribution, and for other purposes; to the Committee on
Finance.
the mixed blood ute indian tax status act
Mr. HATCH. Mr. President, I am joined today by my colleagues,
Senators Inouye, McCain, and Bennett, to introduce a bill of great
importance to the mixed-blood Utes, a native population of my home
State of Utah.
This limited legislation will restore the tax status of the mixed
blood Ute Indians with regard to proceeds received from a trust created
by the Federal Government as agreed in a settlement between the Federal
Government and the Ute Tribe in 1954.
Until recently, the Federal Government has respected the intent of
Congress to exempt this income from Federal and State taxation.
However, in a recent tenth circuit decision the court construed the
intent of Congress as allowing the tax exemption on the settlement
proceeds to lapse. This bill is necessary to clarify the legislative
intent of Congress and reinstate the exemption.
In my view, it was the intent of Congress in the 1954 settlement to
exempt from Federal and State taxation the income derived from the
assets held in continued trust by the Federal Government for, and paid
to, the mixed blood Ute Indians. This has been the law for nearly four
decades and should remain the law.
Historically, with regard to all settlements between the Federal
Government and numerous Indian nations, the proceeds from settlements
have been exempt from Federal and State taxation. The mixed blood Ute
Indians have been singled out and treated differently since the tenth
circuit's decision. This bill clarifies the 1954 settlement and simply
restores the tax status of the mixed blood Utes.
I believe all of my Senate colleagues will recognize this legislation
as both fair and necessary. I am pleased to have the support of the
chairman and ranking member of the Senate Indian Affairs Committee as
well as my Utah colleague, Senator Bennett. I urge all Senators to help
us clarify this exemption.
____________________