[Congressional Record Volume 142, Number 141 (Thursday, October 3, 1996)]
[Senate]
[Pages S12304-S12311]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




[[Page S12304]]



          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

       By Mr. KERRY:
  S. 2190. A bill to amend the Internal Revenue Code of 1986 and the 
Social Security Act to require the Internal Revenue Service to collect 
child support through wage withholding and to eliminate State 
enforcment of child support obligations other than medical support 
obligations; to the Committee on Finance.


           THE UNIFORM CHILD SUPPORT ENFORCEMENT ACT OF 1996

  Mr. KERRY. Mr. President, I am introducing legislation today to help 
ensure that children across this country get the economic support they 
need and deserve from both parents in order to have a wholesome 
childhood, grow up healthy, and thrive.
  Mr. President, child support reform is an urgent public issue because 
it affects so many children. In 1994, one out of every four children 
lived in a family with only one parent present in the home. Half of all 
the 18.7 million children living in single-parent families in 1994 were 
poor, compared with only slightly more than one out of every 10 
children in two-parent families. Clearly the payment of child support 
by the absent parent is an important determinant of the economic status 
of these children.
  Unfortunately, the failure to pay child support is extraordinarily 
widespread, cutting across income and racial lines. Of the 10 million 
women raising children with an absent parent, over 4 million had no 
support awarded. Of those 5.4 million women who were due support, 
slightly over half received the full amount due, while a quarter 
received partial payment, and a quarter received nothing at all. Let me 
repeat that, Mr. President--more than half of the women with child 
support orders received no support or less than the full amount.
  Mr. President, common sense will tell you that children are hurt when 
parents do not pay support. But perhaps some evidence will make the 
point even clearer. A recent survey of single parents in Georgia, 
Oregon, Ohio, and New York documents the real harm children suffer when 
child support is not paid: During the first year after the parent left 
the home, more than half the families surveyed faced a serious housing 
crisis. Nearly a third reported that their children went hungry at some 
point during the year. And over a third reported that their children 
lacked appropriate clothing such as a winter coat.
  Mr. President, it is also clear that better child support enforcement 
can produce a lot more money for children. A 1994 study by the Urban 
Institute estimates that if child support orders were established for 
all children with a living noncustodial father and these orders were 
fully enforced, aggregate child support payments would have been $47.6 
billion dollars in 1990--nearly three times the amount of child support 
actually paid in this country.
  Unfortunately, this country has made all too little progress in 
tackling the child support problem, and this has been true under both 
Democratic and Republican administrations. For all women over the past 
decade, the average child support payment due, the average amount 
received, as well as the percentage of women with awards, have remained 
virtually unchanged--adjusting for inflation. Similarly, the State 
child support enforcement system that serves welfare families and 
nonwelfare families who ask for help has made progress in paternity 
establishment, but little progress overall. Over 500,000 children had 
their paternity established by State agencies in fiscal year 1994--a 50 
percent increase over the last 5 years. But fewer than one out of every 
five cases served by State agencies had any child support paid in 
fiscal year 1994--a figure that has risen only slightly since fiscal 
year 1990. Mr. President, it is an intolerable situation for our 
Nation's children when State child support agencies are making 
absolutely no collection in 80 percent of their cases.
  My bill will help make sure that we achieve real progress for 
children. During this session, Congress passed some important 
improvements in the child support system in the welfare bill that 
recently became law. My bill would give States a chance to implement 
these new changes and then assess their success or failure. If these 
reforms succeed in dramatically improving the performance of State 
child support offices, then this bill would not tinker with success. 
If, however, we do not see dramatic improvement in collections within 
the next 3 years, this bill would ensure that we take bold steps to 
help children. This bill would leave establishment of paternity and 
child support orders at the State level but move collection of support 
to the national level where we can more aggressively pursue interstate 
cases and send a message to all parents obligated to pay support that 
making full and timely support payments is an obligation as serious as 
making full and timely payment of taxes. If more than half the States 
do not achieve a 75-percent collection rate in their child support 
cases, then the system of collection would be federalized to ensure 
that children get the support they need and deserve.

  Mr. President, it has been 12 years since this Congress passed the 
first major child support legislation. However, despite this 
legislative effort and additional reforms in 1988, according to a 
recent study there is a higher default rate on child support payments 
than on used car loans. I do not believe a single Member of this body 
will argue with me that this is wrong. If, under the newly revised 
Federal law, States can rectify this situation, we can all take 
pleasure and satisfaction from watching them do it. If they cannot, we 
must no longer stand idly by wringing our hands. I urge my colleagues 
to support this bill so that America's children of every income level 
will be assured of the support they need and deserve.
  I ask unanimous consent that the full 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. 2190

       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 ``Uniform Child Support 
     Enforcement Act of 1996''.

     SEC. 2. EFFECTIVE DATE; AMENDMENTS.

       (a) In General.--This Act and the amendments made by this 
     Act shall take effect on the 1st day of the 1st calendar 
     month that begins after the 3-year period that begins with 
     the date of the enactment of this Act, if the Secretary of 
     Health and Human Services certifies to the Congress that on 
     such 1st day more than 50 percent of the States have not 
     achieved a 75 percent collection rate in child support cases 
     in which child support is awarded and due under the 
     jurisdiction of such States pursuant to part D of title IV of 
     the Social Security Act.
       (b) Elimination of Provisions of Law Relating To State 
     Enforcement of Child Support Obligations Other Than Medical 
     Support Obligations.--Not later than 90 days after the 
     effective date of this Act and the amendments made by this 
     Act, the Secretary of Health and Human Services shall submit 
     to the appropriate committees of the Congress a legislative 
     proposal proposing such technical and conforming amendments 
     as are necessary to eliminate State enforcement of child 
     support obligations other than medical support obligations 
     and to bring the law into conformity with the policy embodied 
     in this Act.

     SEC. 3. NATIONAL CHILD SUPPORT ORDER REGISTRY.

       (a) Establishment.--
       (1) In general.--The Secretary of the Treasury shall 
     establish in the Internal Revenue Service a national registry 
     of abstracts of child support orders.
       (2) Child support order defined.--As used in this section, 
     the term ``child support order'' means an order, issued or 
     modified by a State court or an administrative process 
     established under State law, that requires an individual to 
     make payments for support and maintenance of a child or of a 
     child and the parent with whom the child is living.
       (b) Contents of Abstracts.--The abstract of a child support 
     order shall contain the following information:
       (1) The names, addresses, and social security account 
     numbers of each individual with rights or obligations under 
     the order, to the extent that the authority that issued the 
     order has not prohibited the release of such information.
       (2) The name and date of birth of any child with respect to 
     whom payments are to be made under the order.
       (3) The dollar amount of child support required to be paid 
     on a monthly basis under the order.
       (4) The date the order was issued or most recently 
     modified, and each date the order is required or scheduled to 
     be reviewed by a court or an administrative process 
     established under State law.
       (5) Any orders superseded by the order.
       (6) Such other information as the Secretary of the 
     Treasury, in consultation with the Secretary of Health and 
     Human Services, shall, by regulation require.

[[Page S12305]]

     SEC. 4. CERTAIN STATUTORILY PRESCRIBED PROCEDURES REQUIRED AS 
                   A CONDITION OF RECEIVING FEDERAL CHILD SUPPORT 
                   FUNDS.

       Section 466(a) of the Social Security Act (42 U.S.C. 
     666(a)), as amended by section 382 of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996, is amended by inserting after paragraph (19) the 
     following:
       ``(20)(A) Procedures which require any State court or 
     administrative agency that issues or modifies (or has issued 
     or modified) a child support order to transmit an abstract of 
     the order to the Internal Revenue Service on the later of--
       ``(i) the date the order is issued or modified; or
       ``(ii) the effective date of this paragraph.
       ``(B) Procedures which--
       ``(i) require any individual with the right to collect 
     child support pursuant to an order issued or modified in the 
     State (whether before or after the effective date of this 
     paragraph) to be presumed to have assigned to the Internal 
     Revenue Service the right to collect such support, unless the 
     individual affirmatively elects to retain such right at any 
     time; and
       ``(ii) allow any individual who has made the election 
     referred to in clause (i) to rescind or revive such election 
     at any time.''.

     SEC. 5. COLLECTION OF CHILD SUPPORT BY INTERNAL REVENUE 
                   SERVICE.

       (a) In General.--Chapter 77 of the Internal Revenue Code of 
     1986 (relating to miscellaneous provisions), as amended by 
     section 1204(a) of the Taxpayer Bill of Rights 2, is amended 
     by adding at the end the following new section:

     ``SEC. 7525. COLLECTION OF CHILD SUPPORT.

       ``(a) Employee To Notify Employer of Child Support 
     Obligation.--
       ``(1) In general.--Each employee shall specify, on each 
     withholding certificate furnished to such employee's 
     employer--
       ``(A) the monthly amount (if any) of each child support 
     obligation of such employee, and
       ``(B) the TIN of the individual to whom each such 
     obligation is owed.
       ``(2) When certificate filed.--In addition to the other 
     required times for filing a withholding certificate, a new 
     withholding certificate shall be filed within 30 days after 
     the date of any change in the information specified under 
     paragraph (1).
       ``(3) Period certificate in effect.--Any specification 
     under paragraph (1) shall continue in effect until another 
     withholding certificate takes effect which specifies a change 
     in the information specified under paragraph (1).
       ``(4) Authority to specify smaller child support amount.--
     In the case of an employee who is employed by more than 1 
     employer for any period, such employee may specify less than 
     the monthly amount described in paragraph (1)(A) to each such 
     employer so long as the total of the amounts specified to all 
     such employers is not less than such monthly amount.
       ``(b) Certain Obligations Exempt.--This section shall not 
     apply to a child support obligation for any month if the 
     individual to whom such obligation is owned has so notified 
     the Secretary and the individual owing such obligation more 
     than 30 business days before the beginning of such month.
       ``(c) Employer Obligations.--
       ``(1) Requirement to deduct and withhold.--
       ``(A) In general.--Every employer who receives a 
     certificate under subsection (a) that specifies that the 
     employee has a child support obligation for any month shall 
     deduct and withhold from the wages (as defined in section 
     3401(a)) paid by such employer to such employee during each 
     month that such certificate is in effect an additional amount 
     equal to the amount of such obligation or such other amount 
     as may be specified by the Secretary under subsection (d).
       ``(B) Limitation on aggregate withholding.--In no event 
     shall an employer deduct and withhold under this section from 
     a payment of wages an amount in excess of the amount of such 
     payment which would be permitted to be garnished under 
     section 303(b) of the Consumer Credit Protection Act.
       ``(2) Notice to secretary.--
       ``(A) In general.--Every employer who receives a 
     withholding certificate shall, within 30 business days after 
     such receipt, submit a copy of such certificate to the 
     Secretary.
       ``(B) Exception.--Subparagraph (A) shall not apply to any 
     withholding certificate if--
       ``(i) a previous withholding certificate is in effect with 
     the employer, and
       ``(ii) the information shown on the new certificate with 
     respect to child support is the same as the information with 
     respect to child support shown on the certificate in effect.
       ``(3) When withholding obligation takes effect.--Any 
     withholding obligation with respect to a child support 
     obligation of an employee shall commence with the first 
     payment of wages after the certificate is furnished.
       ``(d) Secretary To Verify Amount of Child Support 
     Obligation.--
       ``(1) Verification of information specified on withholding 
     certificates.--Within 45 business days after receiving a 
     withholding certificate of any employee, or a notice from any 
     person claiming that an employee is delinquent in making any 
     payment pursuant to a child support obligation, the Secretary 
     shall determine whether the information available to the 
     Secretary under section 3 of the Uniform Child Support 
     Enforcement Act of 1996 indicates that such employee has a 
     child support obligation.
       ``(2) Employer notified if increased withholding is 
     required.--If the Secretary determines that an employee's 
     child support obligation is greater than the amount (if any) 
     shown on the withholding certificate in effect with respect 
     to such employee, the Secretary shall, within 45 business 
     days after such determination, notify the employer to whom 
     such certificate was furnished of the correct amount of such 
     obligation, and such amount shall apply in lieu of the amount 
     (if any) specified by the employee with respect to payments 
     of wages by the employer after the date the employer receives 
     such notice.
       ``(3) Determination of correct amount.--In making the 
     determination under paragraph (2), the Secretary shall take 
     into account whether the employee is an employee of more than 
     1 employer and shall appropriately adjust the amount of the 
     required withholding from each such employer.
       ``(e) Child Support Obligations Required To Be Paid With 
     Income Tax Return.--
       ``(1) In general.--The child support obligation of any 
     individual for months ending with or within any taxable year 
     shall be paid--
       ``(A) not later than the last date (determined without 
     regard to extensions) prescribed for filing his return of tax 
     imposed by chapter 1 for such taxable year, and
       ``(B)(i) if such return is filed not later than such date, 
     with such return, or
       ``(ii) in any case not described in clause (i), in such 
     manner as the Secretary may by regulations prescribe.
       ``(2) Credit for amount previously paid.--The amount 
     required to be paid by an individual under paragraph (1) 
     shall be reduced by the sum of--
       ``(A) the amount collected under this section with respect 
     to periods during the taxable year, plus
       ``(B) the amount (if any) paid by such individual under 
     section 6654 by reason of subsection (f)(3) thereof for such 
     taxable year.
       ``(f) Failure To Pay Amount Owing.--If an individual fails 
     to pay the full amount required to be paid under subsection 
     (e) on or before due date for such payment, the Secretary 
     shall assess and collect the unpaid amount in the same 
     manner, with the same powers, and subject to the same 
     limitations applicable to a tax imposed by subtitle C the 
     collection of which would be jeopardized by delay.
       ``(g) Credit or Refund for Withheld Child Support in Excess 
     of Actual Obligation.--There shall be allowed as a credit 
     against the taxes imposed by subtitle A for the taxable year 
     an amount equal to the excess (if any) of--
       ``(1) the aggregate of the amounts described in 
     subparagraphs (A) and (B) of subsection (e)(2), over
       ``(2) the actual child support obligation of the taxpayer 
     for such taxable year.

     The credit allowed by this subsection shall be treated for 
     purposes of this title as allowed by subpart C of part IV of 
     subchapter A of chapter 1.
       ``(h) Child Support Treated as Taxes.--
       ``(1) In general.--For purposes of penalties and interest 
     related to failure to deduct and withhold taxes, amounts 
     required to be deducted and withheld under this section shall 
     be treated as taxes imposed by chapter 24.
       ``(2) Other rules.--Rules similar to the rules of sections 
     3403, 3404, 3501, 3502, 3504, and 3505 shall apply with 
     respect to child support obligations required to be deducted 
     and withheld.
       ``(3) Special rule for collections.--For purposes of 
     collecting any unpaid amount which is required to be paid 
     under this section--
       ``(A) paragraphs (4), (6), and (8) of section 6334(a) 
     (relating to property exempt from levy) shall not apply, and
       ``(B) there shall be exempt from levy so much of the 
     salary, wages, or other income of an individual as is being 
     withheld therefrom in garnishment pursuant to a judgment 
     entered by a court of competent jurisdiction for the support 
     of his minor children.
       ``(i) Collections Dispersed to Individual Owed 
     Obligation.--
       ``(1) In general.--Payments received by the Secretary 
     pursuant to this section or by reason of section 6654(f)(3) 
     which are attributable to a child support obligation payable 
     for any month shall be paid (to the extent such payments do 
     not exceed the amount of such obligation for such month) to 
     the individual to whom such obligation is owed as quickly as 
     possible. Any penalties and interest collected with respect 
     to such payments also shall be paid to such individual.
       ``(2) Shortfalls in payments made by other withheld 
     amounts.--If the amount payable under a child support 
     obligation for any month exceeds the payments (referred in 
     paragraph (1)) received with respect to such obligation for 
     such month, such excess shall be paid from other amounts 
     received under subtitle C or section 6654 with respect to the 
     individual owing such obligation. The treasury of the United 
     States shall be reimbursed for such other amounts from 
     collections from the individual owing such obligation.
       ``(3) Families receiving state assistance.--In the case of 
     an individual with respect to whom an assignment of child 
     support payments to a State is in effect--
       ``(A) of the amounts collected which represent monthly 
     support payments, the first $50 of any payments for a month 
     shall be

[[Page S12306]]

     paid to such individual and shall not be considered as income 
     for purposes of calculating amounts of State assistance, and
       ``(B) all other amounts shall be paid to such State 
     pursuant to such assignment.
       ``(j) Treatment of Arrearages Under Child Support 
     Obligations Not Subject To Section For Prior Period.--If--
       ``(1) this section did not apply to any child support 
     obligation by reason of subsection (b) for any prior period, 
     and
       ``(2) there is a legally enforceable past-due amount under 
     such obligation for such period,

     then such past-due amount shall be treated for purposes of 
     this section as owed (until paid) for each month that this 
     section applies to such obligation.
       ``(k) Definitions and Special Rules.--
       ``(1) Definitions.--For purposes of this section--
       ``(A) Withholding certificate.--The term `withholding 
     certificate' means the withholding exemption certificate used 
     for purposes of chapter 24.
       ``(B) Business day.--The term `business day' means any day 
     other than a Saturday, Sunday, or legal holiday (as defined 
     in section 7503).
       ``(2) Timely mailing.--Any notice under subsection (c)(2) 
     or (d)(2) which is delivered by United States mail shall be 
     treated as given on the date of the United States postmark 
     stamped on the cover in which such notice is mailed.
       ``(l) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''
       (b) Withheld Child Support To Be Shown on W-2.--Subsection 
     (a) of section 6051 of such Code, as amended by section 
     310(c)(3) of the Health Insurance Portability and 
     Accountability Act of 1996, is amended by striking ``and'' at 
     the end of paragraph (10), by striking the period at the end 
     of paragraph (11) and inserting ``, and'', and by inserting 
     after paragraph (11) the following new paragraph:
       ``(12) the total amount deducted and withheld as a child 
     support obligation under section 7525(c).''
       (c) Application of Estimated Tax.--
       (1) In general.--Subsection (f) of section 6654 of such 
     Code (relating to failure by individual to pay estimated 
     income tax) is amended by striking ``minus'' at the end of 
     paragraph (2) and inserting ``plus'', by redesignating 
     paragraph (3) as paragraph (4), and by inserting after 
     paragraph (2) the following new paragraph:
       ``(3) the aggregate amount of the child support obligations 
     of the taxpayer for months ending with or within the taxable 
     year (other than such an obligation for any month for which 
     section 7525 does not apply to such obligation), minus''.
       (2) Paragraph (1) of section 6654(d) of such Code is 
     amended by adding at the end the following new subparagraph:
       ``(D) Determination of required annual payment for 
     taxpayers required to pay child support.--In the case of a 
     taxpayer who is required under section 7525 to pay a child 
     support obligation (as defined in section 7525) for any month 
     ending with or within the taxable year, the required annual 
     payment shall be the sum of--
       ``(i) the amount determined under subparagraph (B) without 
     regard to subsection (f)(3), plus
       ``(ii) the aggregate amount described in subsection 
     (f)(3).''
       (3) Credit for withheld amounts, etc.--Subsection (g) of 
     section 6654 of such Code is amended by adding at the end the 
     following new paragraph:
       ``(3) Child support obligations.--For purposes of applying 
     this section, the amounts collected under section 7525 shall 
     be deemed to be a payment of the amount described in 
     subsection (f)(3) on the date such amounts were actually 
     withheld or paid, as the case may be.''
       (d) Penalty For False Information on Withholding 
     Certificate.--Section 7205 of such Code (relating to 
     fraudulent withholding exemption certificate or failure to 
     supply information) is amended by adding at the end the 
     following new subsection:
       ``(c) Withholding of Child Support Obligations.--If any 
     individual willfully makes a false statement under section 
     7525(a), then such individual shall, in addition to any other 
     penalty provided by law, upon conviction thereof, be fined 
     not more than $1,000, or imprisoned not more than 1 year, or 
     both.''
       (e) New Withholding Certificate Required.--Not later than 
     90 days after the date this Act takes effect, each employee 
     who has a child support obligation to which section 7525 of 
     the Internal Revenue Code of 1986 (as added by this section) 
     applies shall furnish a new withholding certificate to each 
     of such employee's employers. An certificate required under 
     the preceding sentence shall be treated as required under 
     such section 7525.
       (f) Repeal of Offset of Past-Due Support Against 
     Overpayments.--
       (1) Section 6402 of such Code, as amended by section 
     110(l)(7) of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996, is amended by striking 
     subsections (c) and (h) and by redesignating subsections (d), 
     (e), (f), (g), (i), and (j) as subsections (c), (d), (e), 
     (f), (g), and (h), respectively.
       (2) Subsection (a) of section 6402 of such Code, as so 
     amended, is amended by striking ``(c), (d), and (e)'' and 
     inserting ``(c) and (d)''.
       (3) Subsection (c) of section 6402 of such Code (as 
     redesignated by paragraph (1)) is amended--
       (A) by striking ``(other than past-due support subject to 
     the provisions of subsection (c))'' in paragraph (1),
       (B) by striking ``after such overpayment is reduced 
     pursuant to subsection (c) with respect to past-due support 
     collected pursuant to an assignment under section 402(a)(26) 
     of the Social Security Act and'' in paragraph (2).
       (4) Subsection (d) of section 6402 of such Code (as 
     redesignated by paragraph (1)) is amended by striking ``or 
     (d)''.
       (g) Repeal of Collection of Past-Due Support.--Section 6305 
     of such Code is hereby repealed.
       (h) Clerical Amendments.--
       (1) The table of sections for subchapter A of chapter 64 of 
     such Code is amended by striking the item relating to section 
     6305.
       (2) The table of sections for chapter 77 of such Code is 
     amended by adding at the end thereof the following new item:

``Sec. 7525. Collection of child support.''

       (h) Use of Parent Locator Service.--Section 453(a) of the 
     Social Security Act (42 U.S.C. 653(a)) is amended by 
     inserting ``or the Internal Revenue Service'' before 
     ``information as''.

                                 ______
                                 
      By Mr. SIMPSON (for himself and Mr. Kyl):
  S. 2191. A bill to amend the Immigration and Nationality Act, the 
Personal Responsibility and Work Opportunity Reconciliation Act of 
1996, and the Illegal Immigration Reform and Immigrant Responsibility 
Act of 1996, to modify provisions of law relating to public assistance 
and benefits for aliens; to the Committee on the Judiciary.


        the alien public assistance benefits amendments of 1996

  Mr. SIMPSON. Mr. President, this legislation is necessary to put into 
law those very important provisions of the recent immigration bill 
which were deleted at the insistence of the White House.
  The taxpayers of the United States, and particularly those in the 
most heavily immigration-impacted States such as California, deserve 
our protection of the public treasury as contained in this measure.
  Without the provisions included in this bill, persons who are 
eligible to receive food stamps and other public assistance will now be 
permitted to bring to the United States their immigrant relatives whose 
income is also below the threshold for many of the Nation's welfare 
programs. And this, despite, our professed tradition of not allowing 
any person ``likely, at any time, to become a public charge'' to 
immigrate to this country.
  Without the provisions of this bill, illegal aliens will continue to 
receive drivers' licenses, and under the ``motor-voter'' law 
provisions, these illegal aliens with drivers' licenses could well wind 
up voting in U.S. elections.
  Without the protections contained in this bill, illegal aliens could 
continue to receive treatment for AIDS at taxpayers' expense. Please 
hear that--persons who should not even be in the country--who are here 
in violation of our laws--could receive treatment for AIDS at a current 
average cost of $119,000 per person.
  Without this legislation, illegal aliens will be permitted to remain 
in public housing for up to 18 months, even after they have been 
identified and are determined to be ineligible for this taxpayer-funded 
assistance. An unconscionable result.
  Without the provisions of this bill, immigrants who have become 
dependent on taxpayer-funded welfare will now be able to evade 
deportation because of a previous court decisionmaking immigrants on 
public assistance immune from deportation. This bill will clearly 
define the term ``public charge'' and make that important provision 
enforceable once again.

  Without the provisions herein, illegal aliens will continue to 
receive Social Security credit for performing unauthorized work in the 
United States. A startling result.
  Without the procedures provided in the measure for verifying an 
immigrant's eligibility for welfare, we will continue to have illegal 
aliens who obtain welfare merely by claiming they are a U.S. citizen.
  And, without the authorization provided in this bill, States will not 
have the authority to establish their own verification systems in order 
to prevent illegal aliens from obtaining State and local welfare 
benefits.

[[Page S12307]]

  Mr. President, the provisions in this bill were included in the 
illegal immigration bills that passed by overwhelming majorities in 
both Houses of Congress. However, by holding the sword of a Government 
shutdown over the head of the Congress, President Clinton forced the 
Senate to delete these important provisions. This legislation will 
swiftly restore them.
  Most immigrants are hard working and self-sufficient. Many of those 
who do use welfare use it only because our laws and processes make it 
available to them. If it is not available, they will continue to work 
hard, succeed, and obtain the American dream without welfare--just as 
immigrants to this country have for most of our history.
  However, this administration not only resists sensible controls on 
the use of welfare by legal immigrants, it also insists on provisions 
that will result in illegal aliens accessing the welfare system--for 
example, by falsely claiming to be U.S. citizens. The American people 
should be appalled by that.
  Mr. President, the efforts of this administration to so dramatically 
change a vital part of title V of the illegal immigration bill at the 
last minute ill-serves the taxpayers of this country. Both its policies 
and its tactics are dead wrong. This bill will remedy that cunning 
manipulation of the legislation process, and I urge my colleagues to 
support it.
                                 ______
                                 
  By Mr. LUGAR:
  S. 2193. A bill to establish a program for the disposition of donated 
private sector and United States Government nonlethal personal property 
needed by eligible foreign countries; to the Committee on Foreign 
Relations.


         THE U.S. VOLUNTARY AND MATERIAL ASSISTANCE ACT OF 1996

 Mr. LUGAR. Mr. President, I introduce the ``United States 
Voluntary and Material Assistance Act of l996.''
  This bill establishes a program for the voluntary transfer of 
nonlethal equipment and goods donated by the private sector and made 
available as surplus personal property by Federal agencies. The 
recipients of these donations are eligible foreign countries who make 
legitimate requests through the program.
  My bill combines the surpluses generated from our wealth, the innate 
generosity of the American people, our entrepreneurial dynamism, and 
our humanitarianism into a cost-effective program of public-private 
assistance to serve our foreign policy and commercial interests.
  The bill I am introducing today would look to both Federal agencies 
and the private sector for donations of usable goods and equipment for 
shipment abroad. The disposition of surplus personal property from the 
Federal Government is managed and regulated under the Federal Property 
and Administrative Services Act of l949, and amendments thereto. The 
system of priorities that now exists for disposing surplus Federal 
property would not be altered by this new program. My bill would simply 
add foreign recipients to the list of eligible domestic recipients. It 
would place foreign countries at the end of the current pecking order 
of eligibility behind domestic claimants for receiving surplus Federal 
property.
  U.S. private organizations and individuals presently donate surplus 
property to virtually any recipient they want. Many prefer to donate 
their goods to domestic groups or to private voluntary organizations. 
However some wish to ship their donated goods to foreign recipients. 
Nothing in my proposed bill would mandate any change in the manner 
private sector organizations now donate their surplus properties. In 
fact, private organizations wishing to donate charitable goods abroad 
now find the process difficult, time consuming, and expensive. This 
bill would make it easier, faster, and less costly to do so.
  Mr. President, this legislation will bring benefits to many 
participants. It will provide us with another tool to conduct American 
foreign policy. It will benefit private enterprises such as businesses, 
farms, associations, schools, and others who make charitable donations 
to the program. It will strengthen private voluntary groups and non-
governmental organizations who receive and transfer donated items, and 
it will bring help to recipient countries and requesting organizations 
in those countries. The bill is, I believe, a winner for all parties 
involved.
  If enacted, this bill would add another cost-effective tool for 
carrying out U.S. foreign policy. It will help fill some of the gap 
created by the steady reductions in our official foreign assistance 
program.
  My bill would provide donated equipment and goods at much lower costs 
than official foreign assistance, thereby further reducing the burden 
on American taxpayers. Because the goods are donated and not procured, 
because the shipping costs can be negotiated downward through 
competitive bidding, because the program requires very little 
management and bureaucratic infrastructure, and because it will rely 
heavily on volunteers and nongovernmental organizations, the cost of 
providing foreign assistance will be significantly reduced.
  Mr. President, some small-scale model programs now providing donated 
humanitarian goods abroad claim they provide more than ten dollars' 
worth of items for every one dollar invested. In cases where 
transportation costs are low and the value of the donated goods are 
high, there can be a better than 100 to 1 ratio in the value of 
donations supplied to the cost of the program.
  In addition to the cost effectiveness, this program inspires and 
reinforces the generosity and volunteer spirit of the American people. 
It encourages extensive grassroots involvement to make the program a 
success.
  There are numerous private groups and individuals already lending 
voluntary assistance overseas. Many are supported by the Federal 
Government, others operate on their own funds or with funds privately 
raised. A modestly funded program providing humanitarian assistance to 
the Newly Independent States of the former Soviet Union, for example, 
involves charitable contributions and shipments of donated goods from 
more than 700 cities in all 50 States and from virtually every 
congressional district. Thousands of American citizens willing to give 
of their time, talents, and resources make this program work. The 
program I am proposing will involve less bureaucracy, less redtape, 
less funding, and more voluntarism. Because of this, spare equipment 
and disposable goods can be provided more quickly and at lower costs 
than traditional official foreign assistance.

  Participation in international assistance efforts by the private 
sector is generally limited to collecting and making donations or 
preparing goods for shipment. My bill seeks to expand and strengthen 
their participation by creating a viable second track for assistance 
alongside the government-to-government track.
  While overall responsibility for management of the program will 
reside with a program coordinator in the Department of State, several 
provisions in my bill strengthen and encourage the role of the private 
sector. The coordinator is authorized to enlist the services of private 
organizations and voluntary organizations to collaborate in all phases 
of the program. Finally, the bill enhances the role of private 
organizations and voluntary groups by authorizing their involvement in 
identifying and verifying requests from abroad, receiving donations, 
and distributing and monitoring items once they are delivered.
  Donations of excess goods to eligible countries can bring many 
tangible and nontangible benefits to American business. Many American 
firms already donate large quantities of usable medical, agricultural, 
educational, pharmaceutical, and other equipment and consumables to 
foreign countries. This is testimony to the generosity and pragmatism 
of American business.
  The practicality of donating surplus goods is extensive. Apart from 
the positive public relations that voluntary donations can bring, the 
disposal of surplus goods can reap other concrete advantages for 
American business. Donations of goods can help open valuable storage 
space and reduce related costs for both the Federal Government and 
private donors who wish to upgrade, restructure, or reinventory their 
stocks of equipment and products. It can generate financial benefits to 
private businesses by reducing tax liabilities derived from charitable 
donations not fully depreciated.

[[Page S12308]]

  American businesses can also enjoy market advantages by making 
donations to countries where they have little or no market presence. 
This can be a considerable advantage for companies wishing to establish 
an international market presence, to learn about foreign markets, 
establish or expand business networks, or generate interest in their 
products. Acts of good will can have a self-serving motive.
  Let me spell out some of the major features of this bill. First, my 
bill would establish a program coordinator in the Department of State 
who would be responsible for the overall management of the program. The 
coordinator will be more than a recycler of surplus property. He will 
have the responsibility for responding to legitimate requests from 
abroad by developing a system for identifying, receiving, and shipping 
donations. He will be charged with overseeing the receipt, 
classification, storage, shipment, and use of donated properties to the 
program. Finally, he will be charged with ensuring quality control of 
the donations and surplus properties so that the program does not 
become a repository for unwanted goods. He would be charged with 
assisting private voluntary organizations and nongovernmental 
organizations in the implementation of the program.
  My bill will permit only non-lethal property donations or surplus 
items under the program. No item designed for military, religious, or 
political use will be allowed.
  The program will not generate needs but would attempt to satisfy 
those requests which have been authenticated through our overseas 
missions, Peace Corps, or private voluntary organizations. The search 
for usable items in the United States will take place only after the 
coordinator has received a legitimate request from abroad and entered 
it into the program. Once identified, a donation must be certified as 
acceptable for their intended use. This program must not and will not 
be an outlet for damaged goods which only add to the cost of 
the program and undermine its objectives.

  In addition to quality assurances, the bill requires that the 
coordinator develop a policy to ensure that the donations and Federal 
surpluses be used, operated, and maintained by the recipient in a 
manner that was intended when requested and transferred.
  Only those countries now eligible for U.S. foreign assistance can 
participate. Additional requirements to enhance the integrity of the 
program are built into the program. The transferred items cannot be 
resold for profit by or in the recipient country and no transfer will 
be permitted to countries which impose special import duties on the 
donated properties.
  The bill suggests that the President and the coordinator test the 
efficacy of the program in pilot programs in sub-Saharan Africa. While 
there are needs around the world, the needs of sub-Saharan Africa 
countries are most serious and extensive. It is my hope that a 
significant effort can be devoted to this underdeveloped region of the 
world.
  Finally, the bill authorizes a modest appropriations for fiscal years 
l997 and l998 of $20 and $25 million respectively. These funds will be 
used to establish the program, and pay for personnel, related 
infrastructure, and transportation costs involved in shipping donations 
abroad.
  I hope the United States Voluntary and Material Assistance Act of 
l996 will draw the support of the U.S. Senate and the Congress.
                                 ______
                                 
      By Mr. CRAIG:
  S. 2194. A bill to provide the public with access to quality 
outfitter and guide services on Federal lands, and for other purposes; 
to the Committee on Energy and Natural Resources.


               THE OUTFITTER AND GUIDE POLICY ACT OF 1996

 Mr. CRAIG. Mr. President, I am introducing today legislation 
to provide the public with access to high quality outfitter and guide 
services on Federal lands.
  The public served are visitors to the remote and challenging 
backcountry of our national forests, public lands, wildlife refuges, 
national parks, and in a dew instances, lands managed by the Bureau of 
Reclamation. Many people lack the skills, equipment, and experience to 
visit the rugged areas found on our public lands. They depend upon the 
services of professional outfitters and guides for traveling into these 
areas, for their comfort and safety, and for gaining the memorable 
experiences that keep millions of people returning to these special 
places each year.
  The 374 small outiftter and guide businesses spread across my State 
of Idaho are stable businesses and substantial contributors to Idaho's 
economy. The total gross economic effect attributed to outfitting and 
guiding activities in Idaho is in excess of $100 million annually, 
benefiting many local motels, restaurants, retail stores, and a 
backcountry transportation network of charter air and bus companies.
  Because Idaho is a prime destination for American and international 
visitors, the typical Idaho outfitter does reasonably well in his or 
her business, with a net return of 10 percent of gross revenue, 
according to a study in 1993 by the University of Idaho's Department of 
Resource Recreation and Tourism.
  Nationally, the statistics are not as rosy. Studies indicate the 
outfitter and guide industry as a whole expect to net only 4.1 percent 
of their gross revenue. Nonetheless, these outfitter and guide services 
will attract a significant economic benefit--new money, if you will--to 
the rural communities and counties in which they operate.
  With the exception of concessioner law governing hospitality services 
at national parks, this Congress has never addressed the practices of 
the outfitter and guide industry and the needs of the millions of 
visitors who use these services on Federal lands.
  The outfitter and guide industry is a multifaceted venture. Idaho's 
cowboys are such an integral part of our culture that it's difficult to 
establish a date upon which they became part of the recreation 
industry. Idaho's whitewater industry traces back as an offshoot of 
surplus World War II rafts and has enjoyed booming growth since the end 
of the 1940's. Alongside these activities has developed a complex 
offering of hunting, fishing, hiking, llama packing, photography tours, 
outdoor skills training--anything needed to whet the appetite and meet 
the expectations of visitors to our State.
  It wasn't until 1982 that the Forest Service and the Bureau of Land 
Management established a formal policy for the issuance and 
administration of outfitter and guide special use permits. But Bureau 
of Reclamation has only this year begun to develop such a policy with 
no input whatsoever from this Congress.

  Most outfitters will tell you that they have an excellent 
relationship with their agency partners. There is a clear emphasis in 
this partnership on high quality service to the public, resource 
protection and a fair return to the government for the opportunity of 
doing business on public lands.
  Over the past 4 years, however, an increasing number of outfitters 
and guides have witnessed steady deterioration of this professional 
relationship. That deterioration is occurring at the field level, 
undoubtedly as a consequence of agency reorganization, down-sizing, 
budget restraints, and decentralization of policy review. Individual 
problems are difficult to address in formal administrative procedures, 
because Congress has never created the fundamental principles to guide 
this relationship.
  Outfitters in my State also believe--and they make a credible case--
that there is an alarming surge of bias against commercial operations 
in congressionally designated wilderness and other backcountry 
management areas. As guiding services are eliminated or reduced in 
these areas, so go the opportunities for our own citizens and our 
international visitors to experience the American West in a manner 
reminiscent of the way Jim Bridger and Lewis and Clark once saw it.
  I am introducing legislation today to address this deficiency. I am 
introducing this legislation so a discussion can begin on an outfitter 
and guide policy. I will pursue a policy in the coming Congress.
  This bill begins a process of setting in place clear policy for 
agency managers to provide access to the Federal lands for that segment 
of the public that needs or desires the services of outfitters and 
guides. It expresses the intent of this Congress that those needs will 
be met through competition in the quality of services offered to the 
public, through responsible resource protection, and through a fair fee 
to the government.

[[Page S12309]]

  This bill also raises the bar and sets a higher standard for 
outfitter and guide performance in the next century. We want and need 
their investment in the training and equipment and facilities required 
by the public to visit backcountry. That's not a job the agencies can 
or should be doing.
  If outfitters are living up to their commitment to the public, their 
investment should be secured and good service rewarded by performance-
based renewal of a right to operate.
  But I think Congress has been very clear in debating proposed 
concessions policy reform that satisfactory is just no longer good 
enough. Congress needs to give the agencies a clear signal that the bad 
and the mediocre are to be removed from a system upon which the 
American public relies for its use and enjoyment of recreation 
resources.
  Over the past 4 years, my colleague from Utah and my colleague from 
Arkansas have grappled with the unique and sometimes peculiar details 
of the outfitter and guide industry. Similarly my colleague from 
Alaska, who is also the author of concessions policy legislation, is 
very knowledgeable of the very large outfitter and guide industry in 
his State.
  I would hope that in the next Congress we can combine our efforts to 
meet the needs of a public who confront a very diverse choice of 
recreation opportunities on Federal lands. I am convinced that we err 
in attempting to squeeze these diverse operations into the same mold. 
There is a uniqueness in the outfitters and guide industry that 
deserves to be addressed separately.
  I want to assure my colleagues that my introduction of outfitter and 
guide legislation is not solely a reaction to their efforts. The 
possibility of this legislation has been a point of discussion among 
Idaho outfitters and myself for over 2 years.
  In the meantime, the hunch that the agency relationship was 
disintegrating has become a reality. Some far-ranging problems have 
been developing and have taken on clarity for an industry that is 
critically important to the economy of my State and most other Western 
States. We were perhaps short-sighted in not addressing the overall 
structure and operations of this industry in a more formal fashion at 
the beginning of this decade.
  I look forward in the coming months to detailed discussions of the 
steps to be taken in correcting these problems.
                                 ______
                                 
      By Mr. WYDEN (for himself, Mr. Dodd, and Mr. Simon):
  S. 2195. A bill to provide for the regulation of human tissue for 
transplantation to ensure that such tissue is handled in a manner to 
preserve its safety and purity, and for other purposes; to the 
Committee on Labor and Human Resources.


                  the human tissues safety act of 1996

 Mr. WYDEN. Mr. President, I introduce the Human Tissues Safety 
Act of 1996. I want to acknowledge at this time the hard work and 
cosponsorship of my colleagues, Senators Dodd and Simon, who have acted 
tirelessly in crafting this legislation which I believe enjoys broad 
support throughout the industry, and which offers patients receiving 
transplanted human tissues substantial new safety protection and 
assurance of quality.
  This bill addresses regulation by the Food and Drug Administration of 
human tissue, including cells grown from a patient's own tissue, for 
transplantation. The bill also addresses the regulation of stem cells 
obtained from umbilical cord blood, which involves similar issues.
  The purpose of this legislation is to ensure that human tissue is 
regulated in a manner that ensures its safety, while allowing efficacy 
to be demonstrated through the use of patient outcome registries rather 
than premarket approval mechanisms that would impede patient access and 
burden the development of important new tissue repair therapies.
  Mr. President, I find it shocking that FDA does not even have a list 
of the hundreds of tissue banks in this country that process human 
tissue from cadavers. Without such a list, FDA cannot send inspectors 
to these tissue banks to ensure that they comply with the Agency's 
infectious disease screening requirements. We should not wait until a 
child get AIDS from infected tissue to empower FDA to ensure compliance 
with its infectious disease screening requirements.
  At the same time, our bill would create reduced regulation for the 
safest type of human tissue--human cells that are taken from a patient 
biopsy, grown in cell culture, and then reimplanted into the same 
patient to repair or replace similar tissue. This type of tissue, known 
as autologous tissue, presents no risk of infectious disease. Although 
autologous tissue has historically been unregulated, both in the U.S. 
and throughout the world, the FDA recently announced that it would 
begin requiring premarket approval for this class of tissue in December 
1997.
  The FDA's policies for allogeneic, that is, from a donor source, and 
autologous, that is, from the same patient, tissue are inconsistent 
with the concept of regulating products based on risk. For instance, 
cartilage that is obtained from a cadaver presents a number of risks--
infectious disease, rejection by the patient's body, graft-versus-host 
disease, and the risks associated with using immunosuppressive drugs--
but is not subject to premarket approval. It does not make sense to 
require premarket approval for a patient's own cartilage, when 
alternative, and more risky, sources of cartilage are essentially 
unregulated.
  This bill approaches this field from a very different perspective. We 
begin with a recognition that transplantation of human tissue, whether 
allogeneic or autologous, has been an unregulated practice of medicine 
for over thirty year. During this time, the major problems with tissue 
and, for that matter, organ transplantation have been, first, the risk 
of infectious disease and, second, the lack of enough donated tissues 
and organs for all the patients who need them. There has never been any 
demonstrated need for a premarket approval mechanism for tissue 
transplantation. Indeed, the lack of premarket approval has permitted 
rapid progress to occur in this field, along with faster patient access 
to important new therapies.
  This bill also recognizes that human cells and tissues are not drugs, 
biological products, or medical devices, and that it is inappropriate 
to regulate them as if they were. Drugs may be toxic or carcinogenic, 
while tissue is not. Drugs circulate in the bloodstream and have 
systemic effects, while tissue is typically transplanted into a 
localized area and does not circulate in the blood. For these, and many 
other reasons, tissue is generally less risky than the products that 
FDA traditionally regulates. The results of transplantation generally 
are much more predictable than are the effects of a synthetic chemical. 
It does not make sense to regulate human tissue under a regulatory 
regime designed for vastly different products. Nor does it make sense 
to regulate autologous tissue more stringently than allogeneic tissue.
  We also recognize that, unlike the patented products that FDA 
regulates, human tissue transplantation typically involves 
nonproprietary substances, such as heart valves, bone marrow, corneas, 
and ligaments. As a result, it's difficult for physicians, tissue 
banks, and biotechnology companies that develop new ways to use tissue 
to financially justify the expenditures associated with meeting 
premarket approval requirements. It is unclear, for instance, that bone 
marrow transplantation would have been developed had FDA required 
premarket approval for this technology. And, indeed, when FDA decided 
to require premarket approval for human heart valves, two of the four 
tissue banks that supplied these heart valves to surgeons went out of 
business.
  The bottom line is that FDA's plan to regulate many types of human 
tissue as if they were drugs, and to regulate autologous tissue more 
stringently than allogeneic tissue, is an exercise of trying to fit 
square pegs in round holes. It will significantly increase the costs of 
developing new tissue repair therapies, while delaying patient access 
for years.
  This bill also addresses the regulation of umbilical cord blood, a 
related field with tremendous medical promise. Until recently, a baby's 
umbilical cord was considered to be a disposable medical waste. Now we 
know that umbilical cord blood is a rich source of stem cells, which 
like bone marrow can be used in transplantation to treat childhood 
leukemia and other cancers. In

[[Page S12310]]

fact, cord blood stem cells are even better than bone marrow stem cells 
because cord blood cells require less precise donor matching than bone 
marrow cells.
  Bone marrow transplantation has been essentially unregulated for the 
past 30 years, and during that time the principal problem has not been 
a lack of safety or efficacy, but a lack of bone marrow. Only about 10 
percent of transplant candidates are able to obtain a donor match in 
time to save their lives. So cord blood transplantation is an exciting 
and potentially lifesaving new development.
  Unfortunately, while bone marrow transplantation was developed at a 
time when FDA did not feel the need to subject every new therapy to 
premarket approval, cord blood transplantation was not. As in the case 
of autologous cell therapies, FDA is proposing to regulate cord blood 
transplantation as if it were a drug, significantly hindering the 
development of this new therapy.
  Mr. President, this bill does not answer all of the questions. For 
example, I believe that when we take up this legislation at the 
beginning of the next Congress we must address issues including 
safeguarding the confidentiality of proprietary company and patient 
information likely to be recorded during the registry process. Also, 
oversight will be needed to ensure that if and when FDA implements this 
process, an overriding theme drives the regulatory exercise . . . that 
being that the rigor of the FDA's requirements match, but not exceed, 
the degree of manipulation a particular human tissue product undergoes.
  This is an exciting and potentially very important new field of 
biomedical research. It is my intention to focus on this issue early in 
the next Congress.
                                 ______
                                 
      By Mr. LAUTENBERG (for himself, Mr. Levin, Mr. DeWine, and Mr. 
        Bradley):
  S. 2196. A bill to require the Secretary of the Treasury to mint 
coins in commemoration of the sesquicentennial of the birth of Thomas 
Alva Edison, to redesign the half dollar circulating coin for 1997 to 
commemorate Thomas Edison, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.


     the thomas alva edison sesquicentennial commemorative coin act

  Mr. LAUTENBERG. Mr. President, I rise on behalf of Senators Bradley, 
Levin, and myself, to submit a resolution that would direct the 
Secretary of the Treasury to mint coins in 1997 commemorating the 150th 
anniversary of Thomas Alva Edison's birth.
  The genius behind more than 1,300 inventions, including the 
incandescent light bulb, the alkaline battery, the phonograph and 
motion pictures, Edison was awarded the Congressional gold medal in 
1928 ``for development and application of inventions that have 
revolutionized civilization in the last century.'' We have the 
opportunity to again honor one of the world's greatest inventors by 
issuing both commemorative and circulating coins with Mr. Edison's 
likeness.
  Mr. President, not only would these coins honor the memory of Thomas 
Edison, they would also raise revenue to support organizations that 
preserve his legacy. The two New Jersey Edison sites, the ``invention 
factory'' in West Orange, NJ, and the Edison Memorial Tower in Edison, 
NJ, are both in poor condition. Irreplaceable records and priceless 
memorabilia are in danger of being destroyed because of leaky roofs, 
defective electrical systems and faulty sprinkler systems. The profits 
raised from surcharges on the commemorative coins would provide funds 
to repair and preserve these and five other historical Edison sites 
across the country and to expand educational programs that teach us 
about this great American.
  Let me emphasize that this legislation would have no net cost to the 
Government. In fact, because circulating coins are a source of 
Government revenue known as seigniorage, this bill will reduce 
Government borrowing requirements, thereby lowering the annual interest 
payments on the national debt. An Edison commemorative coin program 
also has strong support among America's numismatists whose interest is 
crucial to the success of any coin program.
  Mr. President, I introduce this legislation at the end of the 104th 
Congress with the expectation that it will be reintroduced in the next 
Congress and passed next year during the sesquicentennial of the birth 
of Thomas Alva Edison. This legislation would honor a great American 
inventor, it would provide seigniorage to the Treasury to help service 
the national debt, it is popular among coin collectors, and it would 
provide sorely needed funds to important historical sites.
  I urge my colleagues to support this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2196

       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 ``Thomas Alva Edison 
     Sesquicentennial Commemorative Coin Act''.

     SEC. 2. FINDINGS.

       The Congress hereby finds the following:
       (1) Thomas Alva Edison, one of America's greatest 
     inventors, was born on February 11, 1847, in Milan, Ohio.
       (2) Thomas A. Edison's inexhaustible energy and genius 
     produced more than 1,300 inventions in his lifetime, 
     including the incandescent light bulb and the phonograph.
       (3) In 1928, Thomas A. Edison received the Congressional 
     gold medal ``for development and application of inventions 
     that have revolutionized civilization in the last century''.
       (4) 1997 will mark the sesquicentennial of Thomas A. 
     Edison's birth.

                      TITLE I--COMMEMORATIVE COINS

     SEC. 101. COIN SPECIFICATIONS.

       (a) Denominations.--In commemoration of the 
     sesquicentennial of the birth of Thomas A. Edison, the 
     Secretary of the Treasury (in this Act referred to as the 
     ``Secretary'') shall mint and issue the following coins:
       (1) $1 silver coins.--Not more than 350,000 1 dollar coins, 
     each of which shall--
       (A) weigh 26.73 grams;
       (B) have a diameter of 1.500 inches; and
       (C) contain 90 percent silver and 10 percent copper.
       (2) Half dollar silver coins.--Not more than 350,000 half 
     dollar coins, each of which shall--
       (A) weigh 12.50 grams;
       (B) have a diameter of 1.205 inches; and
       (C) contain 90 percent silver and 10 percent copper.
       (b) Legal Tender.--The coins minted under this title shall 
     be legal tender, as provided in section 5103 of title 31, 
     United States Code.
       (c) Numismatic Items.--For purposes of section 5134 of 
     title 31, United States Code, all coins minted under this 
     title shall be considered to be numismatic items.

     SEC. 102. SOURCES OF BULLION.

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

     SEC. 103. DESIGN OF COINS.

       (a) Design Requirements.--
       (1) In general.--The design of the coins minted under this 
     title shall be emblematic of the many inventions made by 
     Thomas A. Edison throughout his prolific life.
       (2) Designation and inscriptions.--On each coin minted 
     under this title there shall be--
       (A) a designation of the value of the coin;
       (B) an inscription of the years ``1847-1997''; and
       (C) inscriptions of the words ``Liberty'', ``In God We 
     Trust'', ``United States of America'', and ``E Pluribus 
     Unum''.
       (3) Obverse of coin.--The obverse of each coin minted under 
     this title shall bear the likeness of Thomas A. Edison.
       (b) Design Competition.--Before the end of the 3-month 
     period beginning on the date of the enactment of this Act, 
     the Secretary shall conduct an open design competition for 
     the design of the obverse and the reverse of the coins minted 
     under this title.
       (c) Selection.--The design for the coins minted under this 
     title shall be--
       (1) selected by the Secretary after consultation with the 
     Commission of Fine Arts; and
       (2) reviewed by the Citizens Commemorative Coin Advisory 
     Committee.

     SEC. 104. ISSUANCE OF COINS.

       (a) Quality of Coins.--Coins minted under this title shall 
     be issued in uncirculated and proof qualities.
       (b) Mint Facility.--Only 1 facility of the United States 
     Mint may be used to strike any particular quality of the 
     coins minted under this title.
       (c) Commencement of Issuance.--The Secretary may issue 
     coins minted under this title beginning January 1, 1997.
       (d) Termination of Minting Authority.--No coins may be 
     minted under this title after December 31, 1997.

     SEC. 105. SALE OF COINS.

       (a) Sale Price.--The coins issued under this title shall be 
     sold by the Secretary at a price equal to the sum of--
       (1) the face value of the coins;
       (2) the surcharge provided in subsection (d) with respect 
     to such coins; and

[[Page S12311]]

       (3) the cost of designing and issuing the coins (including 
     labor, materials, dies, use of machinery, overhead expenses, 
     marketing, and shipping).
       (b) Bulk Sales.--The Secretary shall make bulk sales of the 
     coins issued under this title at a reasonable discount.
       (c) Prepaid Orders.--
       (1) In general.--The Secretary shall accept prepaid orders 
     for the coins minted under this title before the issuance of 
     such coins.
       (2) Discount.--Sale prices with respect to prepaid orders 
     under paragraph (1) shall be at a reasonable discount.
       (d) Surcharges.--All sales of coins minted under this title 
     shall include a surcharge of--
       (1) $14 per coin for the $1 coin; and
       (2) $7 per coin for the half dollar coin.

     SEC. 106. GENERAL WAIVER OF PROCUREMENT REGULATIONS.

       (a) In General.--Except as provided in subsection (b), no 
     provision of law governing procurement or public contracts 
     shall be applicable to the procurement of goods and services 
     necessary for carrying out the provisions of this title.
       (b) Equal Employment Opportunity.--Subsection (a) shall not 
     relieve any person entering into a contract under the 
     authority of this title from complying with any law relating 
     to equal employment opportunity.

     SEC. 107. DISTRIBUTION OF SURCHARGES.

       (a) In General.--The first $7,000,000 of the surcharges 
     received by the Secretary from the sale of coins issued under 
     this title shall be promptly paid by the Secretary as 
     follows:
       (1) \1/7\ to the Museum of Arts and History, in the city of 
     Port Huron, Michigan for the endowment and construction of a 
     special museum on Thomas A. Edison's life in Port Huron.
       (2) \1/7\ to the Edison Birthplace Association, 
     Incorporated, in Milan, Ohio, to assist in such association's 
     efforts to raise an endowment as a permanent source of 
     support for the repair and maintenance of the Thomas A. 
     Edison birthplace, a national historic landmark.
       (3) \1/7\ to the National Park Service for use in 
     protecting, restoring, and cataloguing historic documents and 
     objects at Thomas A. Edison's ``invention factory'' in West 
     Orange, New Jersey.
       (4) \1/7\ to the Edison Plaza Museum in Beaumont, Texas, 
     for expanding educational programs on Thomas A. Edison and 
     for the repair and maintenance of the museum.
       (5) \1/7\ to the Edison Winter Home and Museum in Fort 
     Myers, Florida, for historic preservation, restoration, and 
     maintenance of Thomas A. Edison's historic home and chemical 
     laboratory.
       (6) \1/7\ to Greenfield Village in Dearborn, Michigan, for 
     use in maintaining and expanding displays and educational 
     programs associated with Thomas A. Edison.
       (7) \1/7\ to the Edison Memorial Tower in Edison, New 
     Jersey, for the preservation, restoration, and expansion of 
     the tower and museum.
       (b) Excess Payable to the National Numismatic Collection.--
     After payment of the amount required under subsection (a), 
     the Secretary shall pay the remaining surcharges to the 
     National Museum of American History, Washington, D.C., for 
     the support of the National Numismatic Collection at the 
     museum.
       (c) Audits.--The Comptroller General of the United States 
     shall have the rights to examine such books, records, 
     documents, and other data of any organization which receives 
     any payment from the Secretary under this section, as may be 
     related to the expenditures of amounts paid under this 
     section.

     SEC. 108. FINANCIAL ASSURANCES.

       (a) No Net Cost to the Government.--The Secretary shall 
     take such actions as may be necessary to ensure that minting 
     and issuing coins under this title will not result in any net 
     cost to the United States Government.

  Mr. BRADLEY. Mr. President, I rise today to pay tribute to an 
extraordinary American and New Jerseyan. A hero of the imagination 
whose ingenuity and continuing output of technology profoundly changed 
the lives of people throughout the world. A genius who set a standard 
for American inventiveness that has keyed our progress as a nation.
  Mr. President, it gives me great pleasure in my final floor statement 
to join my colleague from New Jersey, Senator Lautenberg, in 
introducing the Thomas A. Edison Commemorative Coin Act.
  In the spring of 1876, the young Thomas Alva Edison, not yet 30 years 
old, moved 15 of his workers to the small town of Menlo Park, NJ. This 
young man, who had decided to go into the ``invention business,'' did 
not see inventions as strokes of luck. Rather, Edison believed that 
inventions were the products of dedicated work and purpose.
  Mr. President, before he had reached 21 years of age, Edison was 
granted his first patent for a telegraphic vote-recording machine. He 
had developed this machine while he was reporting the votes of Congress 
over the press wires from his job as a telegraph operator. With this 
invention, at each rollcall Members of Congress would simply press a 
button at their seats, immediately registering the vote at the 
Speaker's desk, where votes were counted automatically. Already at this 
early age, Edison showed that he was ahead of his time. In response to 
his invention, the House declared that it was not ready for automated 
voting, and the Senate today continues to go by voice vote. For this, 
at the very least, it is suitable that Congress recognize Thomas 
Edison.
  At Menlo Park, Edison developed a string of remarkable new 
technologies that would shape human history. In 1876 he was 
instrumental in improving the telephone to reach marketability. In 
1877, Edison sang ``Mary Had a Little Lamb'' and played it back to his 
astonished workers, having invented the first ``talking machine,'' or 
phonograph. On New Years' Eve in 1880, Edison illuminated Menlo Park at 
night with forty incandescent light bulbs, which he had developed 1 
year earlier. In 1883, he extended the use of electricity to develop an 
electric railway that soon became the basis of an electric street car 
system. In 1891, he produced a Kinetoscope and 35 mm film using 
celluloid, two products which were the predecessors of all later 
motion-picture machines and film.
  Despite his achievements, Edison was a man who held that there was no 
such thing as genius, and his many failed trials and efforts inspired 
him to say that his success was ``99 percent perspiration and 1 percent 
inspiration.'' For Thomas Edison, inventing was a passion, and he 
demanded as much from those who worked with him.
  In authorizing the Secretary of the Treasury and the U.S. Mint to 
produce a commemorative coin in his memory, it is my hope that we will 
never forget to acknowledge Edison's contributions and inventive 
spirit. Once the costs of the production of the coin are recovered, 
proceeds from the sale of this coin will fund the renovation and upkeep 
of seven sites in five different States dedicated to preserving 
Edison's work, including the Invention Factory in West Orange, NJ, and 
the Edison Memorial Tower in Edison, NJ.
  Mr. President, it is an honor for me to pay tribute to the Wizard of 
Menlo Park, whose inventions had a scope and effect which are truly 
awe-inspiring. We are duty-bound as a nation to preserve the memory of 
a man who developed technology that carried human speech and experience 
beyond time and space, and transformed night into day for millions of 
Americans.
  I hope my colleagues will join me in strong support of this 
legislation.

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