[Congressional Record Volume 144, Number 67 (Friday, May 22, 1998)]
[Senate]
[Pages S5434-S5455]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ENZI (for himself, Mr. Bingaman, Mr. Kennedy, Mr. 
        Jeffords, Mr. Hutchinson, Mr. Brownback, Mr. Thomas, and 
        Nickles):
  S. 2112. A bill to make the Occupational Safety and Health Act of 
1970 applicable to the United States Postal Service in the same manner 
as any other employer; to the Committee on Labor and Human Resources.


                postal employees safety enhancement act

  Mr. ENZI. Mr. President, I rise to introduce the Postal Employees 
Safety Enhancement Act of 1998.
  Mr. President, this bipartisan legislation, cosponsored by my 
colleagues Senators Bingaman, Kennedy, Jeffords and Hutchinson would 
fully bring the United States Postal Service under the regulatory 
umbrella of the Occupational Safety and Health Administration. It has 
always been my unshakeable belief that the Government must play by its 
own rules. This important legislation is an incremental step in the 
effort to ensure that the ``law of the land'' applies equally to all 
branches of the Government as well as the private sector --and 
everything in-between.
  Since I became a member of this distinguished body, I've been 
advocating legislation geared to improve the safety and health of our 
nation's workplaces. My sincere devotion to this issue, however, goes 
back much farther than my work here in Washington. For 12 years, I was 
an accountant for Dunbar Well Service in Gillette, WY, an oil well 
servicing company with offices throughout Wyoming. Like most businesses 
in my home state, Dunbar Well Service is a small business. The payroll 
consisted of 130 employees. As a result, I wore several hats. One of my 
roles was safety instruction, which required me to travel the state 
teaching employees about the importance of workplace safety and health. 
The company's rigorous safety program even had me collecting samples 
for drug tests--an extremely effective method of deterring workplace 
injuries and fatalities, by the way.
  I saw things with OSHA that I thought needed to be changed. I served 
in the State legislature. I was told that States can't change that and 
I understand that. Then I got to come to Washington, and in Washington 
we can make a difference in the workplace. I went to work on a SAFE 
Act, one that will provide safety in all businesses. That has been 
through hearings. It has been through markups in the Labor Committee 
and is ready to be debated on this floor. I have had hands-on 
experience in the workplace with safety, and I know that workplace 
safety and health is everyone's business. And that's the only way it 
works. It is not a political issue, it is an issue that cannot be 
divided by a barrier that separates even the public and the private 
sector. It's everybody's concern, and that is the only way it works.
  We must ensure the safety and health of all employees because they 
are the most important asset of any business. It's success or failure 
rests with their ability to provide efficient care and service to their 
customers, whoever they may be. Although all Federal agencies must 
comply with the 1970 Occupational Safety and Health statute, they are 
not required to pay penalties issued to them by OSHA. The bill I am 
introducing today is the first step in the effort to eliminate this 
barrier.
  It is important to point out that this legislation is not intended to 
single out the Postal Service. My first look at how ineffective Federal 
agencies are at making workplace safety and health a priority began 
when I noted that Yellowstone National Park was cited by OSHA last 
February for 600 violations--92 of them serious. One of those serious 
violations was the Park's failure to report an employee's death to 
OSHA. In fact, Yellowstone has posted five employee deaths in the past 
three and one-half years. Although there are these and other serious 
problems noted in the Park's safety and health record, I later found 
that it pales in comparison to the United States Postal Service's 
record.
  After looking at the past 5 year totals for all Federal workplace 
injuries, illnesses, lost work time and fatalities, I was shocked to 
see the Postal Service at the very top of the list. It was my initial 
feeling that the armed forces would be the most hazardous occupation in 
the Federal Government. That notion was proven wrong. Surprisingly, the 
Postal Service employs relatively the same number of workers as the 
Department of Defense. Yet it has double the number of total workplace 
injuries and illnesses and almost double the number of lost work-time 
cases as the Department of Defense.

[[Page S5435]]

  What is most troubling about the Postal Service's safety record, 
however, is its annual workers' compensation payments. From 1992 to 
1997, the Postal Service paid an annual average of $505 million in 
workers' compensation costs--placing them once again at the top of the 
Federal Government's list. Moreover, the  Postal Service's annual 
contribution to workers' compensation amounts to almost one-third of 
the Federal program's $1.8 billion price tag. These facts are simply 
inexcusable and clearly justify the need for legislation. Better yet, 
this legislation would likely decrease the annual expenditures for 
workers' compensation because of a reduction in workplace injuries, 
illnesses, lost time and fatalities.

  In 1970, Congress passed the Postal Reorganization Act, eliminating 
the old Postal Department status as a cabinet office. Twelve years 
later, the Postal Service became fiscally self-sufficient--depending on 
market-driven revenues rather than taxpayer dollars.
  Of course the Postal Service is big. The Postal Service is 43 percent 
of the world's mail. It has annual profits that exceed $1.5 billion. If 
the Postal Service were a private company, it would be the 9th largest 
business in the United States and 29th in the entire world. It is 
bigger than Coca-Cola, Xerox, and Kodak combined. It has offices in 
virtually every community. In fact, some of the communities in my State 
are communities because they are a post office. So it covers the big 
and it covers the small.
  When I did the SAFE Act I talked to my colleagues on both sides of 
the aisle. I talked to any group that would talk to me. I talked to 
businesses, I talked to employers, I talked to employees, I talked to 
unions, and then drafted a bill. That bill is going through the 
process.
  When I noticed this problem, I went through the same process. I have 
met with those groups--agencies, unions that are involved in this 
process--and I have to say, I have gotten some very helpful, 
constructive suggestions from those groups. Those suggestions appear in 
the bill.
  I have talked to the Postal Service about it. They have reviewed it. 
They have asked for additional time to review it. The bill is only five 
pages long. I don't know how long it takes to review that, so I can 
only assume that they have no problem with the bill either, although I 
am sure they are not excited to come under the same rules that everyone 
else plays under.
  The point of this legislation is simple. If government makes the 
rules, Government must play by them. this is the same basic premise 
adopted by Congress when it passed the Congressional Accountability Act 
during the 104th Congress. The Postal Service is not above the law and 
its employees are no less important to its daily operations than the 
employees of private businesses are to the companies that employ them. 
When advocating workplace safety and health in this context, I can 
think of no better place to start than the Postal Service--which calls 
itself a Federal agency when it is helpful to refer to itself as such. 
In fact, it's not a Federal agency at all. It's a self-sufficient, 
quasi-governmental entity. How many Federal agency's employees can 
collectively bargain under the 1935 National Labor Relations Act? How 
many Federal agencies don't receive one dime of the taxpayers' money? 
How many Federal agencies post annual profits exceeding $1.5 billion? 
The Postal Service exhibits almost every characteristic of a private 
business. Still, it's reluctant to fully comply with Federal 
occupational safety and health law. Clearly, that must change.

  After carefully examining the perspectives of the Postal Service and 
the unions representing its employees, I have concluded that the Postal 
Employees Safety Enhancement Act is necessary legislation. The bill 
would permit OSHA to fully regulate the Postal Service the same way it 
does private businesses. In addition, the bill would prevent the Post 
Office from closing or consolidating rural post offices or services 
simply because it's required to comply with OSHA. Service to all areas 
of the Nation, rural or urban, was made a part of the Postal Service's 
mission by the 1970 Postal Reorganization Act. The quality of the 
service it provides should not decrease because of efforts to protect 
and ensure employee safety and health. Along this same premise, the 
bill would prevent the Postal Rate Commission from raising the price of 
stamps to help the Postal Service pay for potential OSHA fines. Rather, 
the Postal Service should offset the potential for OSHA fines by 
improving workplace conditions which would decrease its annual $500 
million expenditure on workers' compensation claims.
  This bipartisan bill will make the law of the land mean what it says. 
Congress would only be applying those standards to the Postal Service 
that it applied to itself three years ago. The Postal Service has the 
most alarming occupational safety and health record in the Federal 
Government. It should therefore be the first to be reined in.
  Every schoolchild is familiar with the words on the New York Post 
Office that became the motto of the Postal Service, ``Neither snow, nor 
rain, nor heat, nor gloom of night stays these couriers from the swift 
completion of their appointed rounds.'' Add to that the million and one 
barriers, complaints, dogs, assaults and other obstacles our postal 
workers must deal with every day and it is clear that they have more 
than enough to deal with without having to worry about the conditions 
of their workplace as well.
  I urge my colleagues to support this necessary, common sense 
legislation to show our support for workplace safety and health 
everywhere throughout the country, in every business and corporation, 
in both private and the public sector.
  I ask unanimous consent the text of the bill be printed in the 
Record.
  There being no objection the bill was ordered printed in the Record, 
as follows:

                                S. 2112

       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 ``Postal Employees Safety 
     Enhancement Act''.

     SEC. 2. APPLICATION OF ACT.

       (a) Definition.--Section 3(5) of the Occupational Safety 
     and Health Act of 1970 (29 U.S.C. 652(5)) is amended by 
     inserting after ``the United States'' the following: ``(not 
     including the United States Postal Service)''.
       (b) Federal Programs.--
       (1) Occupational safety and health.--Section 19(a) of the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 668(a)) 
     is amended by inserting after ``each Federal Agency'' the 
     following: ``(not including the United States Postal 
     Service)''.
       (2) Other safety programs.--Section 7902(a)(2) of title 5, 
     United States Code, is amended by inserting after 
     ``Government of the United States'' the following: ``(not 
     including the United States Postal Service)''.

     SEC. 3. CLOSING OR CONSOLIDATION OF OFFICES NOT BASED ON OSHA 
                   COMPLIANCE.

       Section 404(b)(2) of title 39, United States Code, is 
     amended to read as follows:
       ``(2) The Postal Service, in making a determination whether 
     or not to close or consolidate a post office--
       ``(A) shall consider--
       ``(i) the effect of such closing or consolidation on the 
     community served by such post office;
       ``(ii) the effect of such closing or consolidation on 
     employees of the Postal Service employed at such office;
       ``(iii) whether such closing or consolidation is consistent 
     with the policy of the Government, as stated in section 
     101(b) of this title, that the Postal Service shall provide a 
     maximum degree of effective and regular postal services to 
     rural areas, communities, and small towns where post offices 
     are not self-sustaining;
       ``(iv) the economic savings to the Postal Service resulting 
     from such closing or consolidation; and
       ``(v) such other factors as the Postal Service determines 
     are necessary; and
       ``(B) may not consider compliance with any provision of the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
     seq.).''.

     SEC. 4. PROHIBITION ON RESTRICTION OR ELIMINATION OF 
                   SERVICES.

       (a) In General.--Chapter 4 of title 39, United States Code, 
     is amended by adding after section 414 the following:

     ``Sec. 415. Prohibition on restriction or elimination of 
       services

       ``The Postal Service may not restrict, eliminate, or 
     adversely affect any service provided by the Postal Service 
     as a result of the payment of any penalty imposed under the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et 
     seq.).''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 4 of title 39, United States Code, is 
     amended by adding at the end the following:

``415. Prohibition on restriction or elimination of services.''.

     SEC. 5. LIMITATIONS ON RAISE IN RATES.

       Section 3622 of title 39, United States Code, is amended by 
     adding at the end the following:

[[Page S5436]]

       ``(c) Compliance with any provision of the Occupational 
     Safety and Health Act of 1970 (29 U.S.C. 651 et seq.) shall 
     not be considered by the Commission in determining whether to 
     increase rates and shall not otherwise affect the service of 
     the Postal Service.''.

  Mr. BINGAMAN. Mr. President, I am pleased to join with my friend and 
colleague from Wyoming, Senator Enzi, in introducing the Postal 
Employees Safety Enhancement Act of 1998.
  I want to begin by commending the distinguished Senator from Wyoming 
for bringing this issue before the Senate. As my colleagues know, in 
the short time he has been in the Senate, Senator Enzi has become one 
of the leading experts on the Occupational Health and Safety Act of 
1970. I have found him to be extremely willing to listen to all sides 
of what are complex issues, to work in a bipartisan manner and to 
engage all interested parties in a constructive dialogue on OSHA 
related issues. I also commend him for recognizing the need which this 
legislation will address and for working with all interested parties 
over the past few weeks to draft a bill that will address that need.
  Mr. President, the bill we are introducing today is really rather 
simple. It will make the Occupational Health and Safety Act applicable 
to the United States Postal Service as it would be to any other private 
sector employer. The reasons for doing this, and the need to do so, are 
very obvious to anyone who looks at this issue. A comparison of all of 
the worker's compensation costs charged to federal employing agencies 
from July 1, 1993 to July 30, 1994 showed the Postal Service had a 
significantly higher rate of employment based injury claims than any 
federal agency. There are numerous reports of safety and health 
problems that have gone unaddressed by the P.O., some of which have 
been laid out by Senator Enzi this morning. Unfortunately, unlike every 
other private sector employee in America, Postal Service workers do not 
have the benefit, or the protections of the OSHA Act. While the Postal 
Service has some internal mechanisms for addressing employee injuries 
most would find these to be inadequate to protect employees and to help 
the Postal Service provide a safer workplace. This legislation should 
be welcomed by all who care about worker safety and health and I 
believe the Postal Service does care.
  As my colleagues know, the Postal Service is one of the largest U.S. 
employers. Over the past several years it has gone through a series of 
reorganizations and restructuring to improve the quality of the service 
it provides. I commend the Postal Service for many of these initiatives 
and appreciate the service it provides to the people of my state. Like 
Senator Enzi, I do not mean to single out the Postal Service with this 
legislation. However, because the Postal Service operates in essence 
like any other private business, I think it is appropriate to expect 
that it complies with the same safety and health standards as other 
businesses. Likewise I think Postal workers deserve the same 
protections afforded all other private sector workers, under the Act.
  Mr. President, I hope the Senate will work quickly to adopt this 
legislation this year. I see no reason why this bill should not pass 
quickly and overwhelmingly.
  Again Mr. President, I commend Senator Enzi for bringing this 
important worker safety measure before the Senate and look forward to 
working with him to ensure its swift passage.
  Mr. KENNEDY. Mr. President, I am proud to join my colleagues, Senator 
Enzi, Senator Jeffords, and Senator Bingaman, in introducing the Postal 
Employees Safety Enhancement Act. This important legislation will 
extend coverage of the Occupational Safety and Health Act to employees 
of the United States Postal Service.
  Few issues are more important to working families than health and 
safety on the job. For the past 28 years, OSHA has performed a critical 
role--protecting American workers from on-the-job injuries and 
illnesses.
  In carrying out this mission, OSHA has made an extraordinary 
difference in people's lives. Death rates from on-the-job accidents 
have dropped by over 60% since 1970--much faster than before the law 
was enacted. More than 140,000 lives have been saved.
  Occupational illnesses and injuries have dropped by one-third since 
OSHA's enactment--to a record low rate of 7.4 per 100 workers in 1996.
  These numbers are still unacceptably high, but they demonstrate that 
OSHA is a success by any reasonable measure.
  Even more lives have been saved in the two places where OSHA has 
concentrated its efforts. Death rates have fallen by 61% in 
construction and 67% in manufacturing. Injury rates have dropped by 
half in construction, and nearly one-third in manufacturing. Clearly, 
OSHA works best where it works hardest.
  Unfortunately, these efforts do not apply to federal agencies. The 
original OSHA statute required only that federal agencies provide 
``safe and healthful places and conditions of employment'' to their 
employees. Specific OSHA safety and health rules did not apply.
  In 1980, President Carter issued an Executive Order that solved this 
problem in part. It directed federal agencies to comply with all OSHA 
safety standards, and it authorized OSHA to inspect workplaces and 
issue citations for violations.
  President Carter's action was an important step, but more needs to be 
done. When OSHA inspects a federal workplace and finds a safety 
violation, OSHA can direct the agency to eliminate the hazard. But OSHA 
has no authority to seek enforcement of its order in court, and it 
cannot assess a financial penalty on the agency to obtain compliance.
  The situation is especially serious in the Postal Service. Postal 
employees suffer one of the highest injury rates in the federal 
government. In 1996 alone, 78,761 postal employees were injured on the 
job--more than nine injuries and illnesses for every hundred workers. 
This rate is 23% higher than the overall private sector rate, and 40% 
higher than the overall federal rate. Fourteen postal employees were 
killed on the job in 1996--one-sixth of the federal total. Workers' 
compensation charges at the Postal Service are also high--$538 million 
in 1997.
  This legislation will bring down these unacceptably high rates. It 
permits OSHA to issue citations for safety hazards, and back them up 
with penalties. This credible enforcement threat will encourage the 
Postal Service to comply with the law. It will save taxpayer dollars 
currently spent on worker's compensation costs.
  Most important, it will reduce the extraordinarily high rate of 
injuries among postal employees. Every worker deserves a safe and 
healthy place to work, and this bill will help achieve that goal for 
the 860,000 employees of the Postal Service. They deserve it, and I 
urge my colleagues to provide it.
                                 ______
                                 
      By Mr. DURBIN (for himself, Ms. Collins, Mr. Faircloth, Mr. 
        Akaka, Ms. Moseley-Braun, Mr. Harkin, Ms. Mikulski, Mr. 
        Wellstone, Mr. Graham, Mr. Johnson, Mr. Cleland, Ms. Landrieu, 
        Mr. Reid, Mr. Torricelli, Mr. Dodd, Mr. Kohl, Mr. Warner, Mrs. 
        Boxer, and Mrs. Murray):
  S. 2114. A bill to amend the Violence Against Women Act of 1994, the 
Family Violence Prevention and Services Act, the Older Americans Act of 
1965, and the Public Health Service Act to ensure that older women are 
protected from institutional, community, and domestic violence and 
sexual assault and to improve outreach efforts and other services 
available to older women victimized by such violence, and for other 
purposes; to the Committee on Labor and Human Resources.


           older women's protection from violence act of 1998

 Mr. DURBIN. Mr. President, today I introduce this legislation 
with my distinguished colleague from Maine, Senator Collins. 
Unfortunately for some, domestic violence is a life long experience. 
Those who perpetrate violence against their family members do not 
desist because the family member grows older. In fact, in some cases, 
the abuse may become more severe as the victim ages becoming more 
isolated from the community with their removal from the workforce. 
Other age-related factors such as increased frailty may increase a 
victim's vulnerability. It also is true that older victims' ability to 
report abuse is frequently confounded by their reliance on their abuser 
for care or housing. Every seven minutes in Illinois, there

[[Page S5437]]

is an incidence of elder abuse. Several research studies have shown 
that elder abuse is the most under reported familial crime. It is even 
more under reported than child abuse with only between one in eight and 
one in fourteen incidents estimated to be reported. Seniors who 
experience abuse worry they will be banished to a nursing home if they 
report abuse. They also must struggle with the ethical dilemma of 
reporting abuse by their children to the authorities and thus 
increasing their child's likelihood of going to jail. Shame and fear 
gag them so that they remain ``silent victims.''
  Domestic violence programs have a moral and ethical responsibility to 
provide services to individuals of any age who are the victims of 
domestic abuse. Yet most domestic violence programs see only a few 
older women a year. That is not to say that the domestic violence 
service providers actively discriminate against older victims. Analysis 
of the few studies that do exist of elder domestic abuse indicate that 
the vast majority do not themselves seek to access existing services. 
There may be many reasons for this. The images portrayed in the media 
of the victims of domestic violence generally depict a young woman, 
with small children. Seniors suffering domestic abuse may not readily 
identify with these images and, therefore, may not see those services 
as being for them. Other cultural barriers may also exist. Many older 
women were raised to believe that family business is a private matter. 
Problems within families were not to be discussed with anyone, 
especially strangers or counselors. Only a handful of domestic abuse 
programs throughout the country are reaching out to older women.
  This legislation seeks to improve current federal family violence 
programs, such as The Violence Against Women Act (VAWA) and Family 
Violence Prevention Services Act (FVPSA), to make them more sensitive 
to the needs of the nations seniors. Title I of this bill promotes the 
inclusion of elder abuse cases in law school clinics and training for 
law enforcement in the identification and referral of older victims of 
domestic violence or elder abuse to services. Title II allows FVPSA 
grant funds to be used for outreach to older individuals. We know that 
great improvements have taken place since VAWA was first passed. One of 
the most successful programs is the law enforcement training program, 
which received $200 million in FY 1998. However, improvement can be 
made with respect to identifying abuse among all age groups. When the 
abuser is old, there may be a reticence on the part of law enforcement 
to deal with this person in the same way that they might deal with a 
younger person. Who wants to send an ``old guy'' to jail? However, lack 
of action jeopardizes the victim further because then the abuser has 
every reason to believe that there are no consequences for their 
actions. Another common problem is differentiating between injuries 
related to abuse and injuries arising from aging, frailty or illness. 
Too many older women's broken bones have been attributed to 
disorientation, osteoporosis or other age-related vulnerabilities 
without any questions being asked to make sure that they are not the 
result of abuse.
  Title III reauthorizes the very important Elder Rights programs 
contained within the Older Americans Act. These programs provide seed 
money for state elder abuse programs. Included here is the Long-term-
care Ombudsman program that monitors nursing homes and investigates 
reports of abuse in such institutions.
  Most domestic abuse shelters are filled with young families. The 
staff and volunteers are predominantly younger than 50 years old. The 
recreation calendar has activities for young women and children. 
Discussions at support groups can be dominated by younger women talking 
about their children, child care and custody. Many domestic abuse 
shelters are not readily accessible to those who are less mobile. For 
instance, some may not be accessible via the ground floor. Moving from 
your home into a shelter is always a traumatic event. However, it may 
be even harder for those who find themselves in surroundings so 
unfamiliar and so totally oriented to a different age group. In my home 
state of Illinois, there are only two centers that focus on the shelter 
needs of seniors. One is the Center for Prevention of Abuse in Peoria, 
the other is the Swan center in Olney, which has a comprehensive elder 
protective services program. Title III seeks to address this shortage 
by encouraging expanded access to domestic violence shelters that cater 
to the needs of older individuals.
  This bill seeks to help foster collaboration between the aging 
networks and domestic violence coalitions. Throughout the United 
States, through the Older Americans Act, a variety of programs seek to 
serve seniors in their communities. Home-delivered meals and other 
services provide an opportunity for seniors to interact with 
individuals outside their own homes. Increasing the knowledge of such 
care providers in how to identify and refer victims of domestic 
violence would likely provide much-needed relief to many of these 
individuals. Title III of this bill contains a ``Community Initiatives 
and Outreach'' grants program to help coordinate both public and 
private efforts in elder domestic abuse prevention and treatment. 
Fostering communication between these two groups has the potential of 
dramatically increasing the number of individuals that are sensitive to 
these issues of abuse and, also, to increase the number of individuals 
who are served by domestic violence programs generally.
  Family violence is one of the most common causes of disease and 
distress seen by physicians. In spite of its existence as a pervasive 
and debilitating medical and social problem, many advocates in the 
domestic violence community believe that it receives insufficient 
attention in the curricula of most schools of medicine or other health 
professional training institutions. Dr. Jane Jackman, past president of 
the Illinois State Medical Society noted last year ``Doctors are 
finding that the problem is under-recognized. Elder abuse or 
maltreatment is growing in significance as a factor in trauma, hospital 
admissions, rising costs of long term care and, ultimately, deaths.'' 
Title III of this bill directs the Assistant Secretary of Aging to 
collaborate with other Departments of Health and Human Services and the 
National Institute of Aging to update and improve curricula for both 
training and retraining of health professionals and others in the area 
of elder domestic abuse. These curricula would be made available to 
educational institutions involved in training health professionals. 
Title IV would amend the Area Health Education Center and Geriatric 
Education Centers funded through the Health Professionals Education Act 
to allow them to use funds for training and retraining health 
professionals in elder domestic abuse.
  The last title of the bill, Title V, examines the issue of financial 
exploitation of seniors. Take the case of Helen (not her real name) 
reported in the Chicago Tribune last year. Helen was a 66-year-old 
mother and grandmother from DuPage County. Early in 1997, Helen lost 
$90,000 and even access to her own kitchen due to the actions of her 
daughter. Helen describes how she felt like a P.O.W. Helen had agreed 
to pool resources with her daughter and son-in-law and buy a house 
where all of them would live; the deal seemed like a win-win 
proposition. Unbeknownst to Helen, most of the money went to pay off 
her son-in-law's debts. Soon the young couple asked Helen for thousands 
more and $300 in monthly rent. Shortly after this, her daughter had 
construction done on the house which put a new wall between Helen's 
bedroom and the kitchen, blocking her way to the kitchen and forcing 
her to prepare her food in the bathroom. Eventually, Helen found 
herself in a shelter. She now lives in a government subsidized 
apartment.
  The Illinois Department of Aging and other elder abuse service 
providers will attest to the fact that Helen is not alone in 
experiencing such financial exploitation. Of the 5,833 reports of elder 
abuse in Illinois in 1997, nearly half (44.6%) were reports of 
financial exploitation. Statistics compiled by the Illinois Department 
on Aging show that the majority of financial abuse victims are female 
and that most have a functional impairment, such as Alzheimer's 
disease. For some, financial exploitation may at times be accompanied 
by physical abuse or the threat of physical abuse or other form of 
coercion. The states Attorneys General have efforts underway to examine 
this area and are

[[Page S5438]]

cooperating in sharing information on how best to deal with such abuse. 
Financial exploitation is probably more complex and sometimes more 
difficult to detect than other forms of abuse. Therefore, we are 
proposing a study by experts in the field to more comprehensively 
analyze the problem and to make recommendations for future actions.
  With the greying of America, the problems of elder domestic abuse in 
all its many ugly manifestations, is likely to grow. I believe that we 
need to take a comprehensive look at our existing family violence 
programs and ensure that these and other programs that serve seniors 
are sensitive and knowledgeable of elder domestic abuse. I am pleased 
that Senators Akaka, Moseley-Braun, Harkin, Mikulski, Wellstone, Dodd, 
Kohl, Warner, Boxer, Graham, Cleland, Landrieu, Reid, Torricelli and 
Faircloth have all joined Senator Collins and myself in introducing 
this bill, and I hope that many more will join us in this effort to 
focus attention on the needs of the ``forgotten older victims of 
domestic violence.''
  Mr. President, I ask unanimous consent that the text of the bill be 
printed the the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2114

       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 ``Older 
     Women's Protection From Violence Act of 1998''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

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

              TITLE I--VIOLENCE AGAINST WOMEN ACT OF 1994

Sec. 101. Elder abuse, neglect, and exploitation.

         TITLE II--FAMILY VIOLENCE PREVENTION AND SERVICES ACT

Sec. 201. Definitions.
Sec. 202. Domestic abuse services for older individuals.
Sec. 203. State grants.
Sec. 204. Demonstration grants for community initiatives.
Sec. 205. Study regarding health professional training with respect to 
              detection and referral of victims of family violence.

                 TITLE III--OLDER AMERICANS ACT OF 1965

Sec. 301. Definitions.
Sec. 302. Research about the sexual assault of women who are older 
              individuals.
Sec. 303. State Long-Term Care Ombudsman program.
Sec. 304. Domestic violence shelters and programs for older 
              individuals.
Sec. 305. Authorization of appropriations.
Sec. 306. Community initiatives and outreach.
Sec. 307. Training for health professionals, and other providers of 
              services to older individuals, on screening for elder 
              abuse, neglect, and exploitation.

                  TITLE IV--PUBLIC HEALTH SERVICE ACT

Sec. 401. Area health education centers.
Sec. 402. Geriatric centers and training.

          TITLE V--FINANCIAL EXPLOITATION OF OLDER INDIVIDUALS

Sec. 501. Study and report.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) of the estimated more than 1,000,000 persons age 65 and 
     over who are victims of abuse each year, at least two-thirds 
     are women;
       (2) in almost 9 out of 10 incidents of domestic elder abuse 
     and neglect, the perpetrator is a family member and adult 
     children of the victims are the largest category of 
     perpetrators and spouses are the second largest category of 
     perpetrators;
       (3) the number of reports of elder abuse in the United 
     States increased by 150 percent between 1986 and 1996 and is 
     expected to continue growing;
       (4) it is estimated that at least 5 percent of the Nation's 
     elderly are victims of moderate to severe abuse and that the 
     rate for all forms of abuse may be as high as 10 percent;
       (5) elder abuse is severely underreported, with 1 in 5 
     cases being reported in 1980 and 1 in 8 cases being reported 
     today;
       (6) based on site-specific information from the Indian 
     Health Service, the rate of trauma and violence faced by 
     Indian women could be considered to be epidemic;
       (7) elder abuse takes on many forms, including physical 
     abuse, sexual abuse, psychological (emotional) abuse, neglect 
     (intended or unintended), and financial exploitation;
       (8) many older persons, particularly women and minorities, 
     fail to report abuse because of shame or as a result of prior 
     unsatisfactory experiences with individual agencies or others 
     who lacked sensitivity to the concerns or needs of older 
     people;
       (9) the lack of culturally relevant elder abuse services 
     for Indian women makes access to shelter and other services 
     difficult and often impossible for some Indian women;
       (10) many older persons fail to report abuse because they 
     are dependent on their abusers and fear being abandoned or 
     institutionalized;
       (11) the lack of access to telephones, law enforcement, and 
     health services in remote areas, including Indian 
     reservations, makes access to relief from elder abuse 
     particularly difficult for some populations;
       (12) public and professional awareness and identification 
     of elder abuse is difficult because older persons are not 
     tied into many social networks (such as schools or jobs), and 
     may become isolated in their homes, which can increase the 
     risk of elder abuse;
       (13) the Department of Justice does not include age as a 
     category for criminal statistics reporting;
       (14)(A) there are relatively few statistics and research 
     studies regarding violence against older women, and even less 
     is known about the incidence of violence against Indian 
     women; and
       (B) there is no national data base regarding violence 
     against Indian women; and
       (15) older persons would greatly benefit from policies that 
     develop, strengthen, and implement programs for the 
     prevention of abuse, including neglect and exploitation, and 
     provide related assistance for victims.
              TITLE I--VIOLENCE AGAINST WOMEN ACT OF 1994

     SEC. 101. ELDER ABUSE, NEGLECT, AND EXPLOITATION.

       The Violence Against Women Act of 1994 (108 Stat. 1902) is 
     amended by adding at the end the following:
    ``Subtitle H--Elder Abuse, Neglect, and Exploitation, Including 
     Domestic Violence and Sexual Assault Against Older Individuals

     ``SEC. 40801. DEFINITIONS.

       ``In this subtitle:
       ``(1) In general.--The terms `elder abuse, neglect, and 
     exploitation', `domestic violence', and `older individual' 
     have the meanings given the terms in section 102 of the Older 
     Americans Act of 1965 (42 U.S.C. 3002).
       ``(2) Sexual assault.--The term `sexual assault' has the 
     meaning given the term in section 2003 of the Omnibus Crime 
     Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-2).

     ``SEC. 40802. LAW SCHOOL CLINICAL PROGRAMS ON ELDER ABUSE, 
                   NEGLECT, AND EXPLOITATION.

       ``The Attorney General shall make grants to law school 
     clinical programs for the purposes of funding the inclusion 
     of cases addressing issues of elder abuse, neglect, and 
     exploitation, including domestic violence, and sexual 
     assault, against older individuals.

     ``SEC. 40803. TRAINING PROGRAMS FOR LAW ENFORCEMENT OFFICERS.

       ``The Attorney General shall develop curricula and offer, 
     or provide for the offering of, training programs to assist 
     law enforcement officers, prosecutors, and relevant officers 
     of Federal, State, tribal, and local courts in recognizing, 
     addressing, investigating, and prosecuting instances of elder 
     abuse, neglect, and exploitation, including domestic 
     violence, and sexual assault, against older individuals.

     ``SEC. 40804. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as may 
     be necessary to carry out this subtitle.''.
         TITLE II--FAMILY VIOLENCE PREVENTION AND SERVICES ACT

     SEC. 201. DEFINITIONS.

       Section 309 of the Family Violence Prevention and Services 
     Act (42 U.S.C. 10408) is amended by adding at the end the 
     following:
       ``(7) The term `elder domestic abuse' means domestic 
     violence, as defined in section 102 of the Older Americans 
     Act of 1965 (42 U.S.C. 3002), against an older individual, as 
     defined in such section.''.

     SEC. 202. DOMESTIC ABUSE SERVICES FOR OLDER INDIVIDUALS.

       Section 311(a) of the Family Violence Prevention and 
     Services Act (42 U.S.C. 10410(a)) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(6) work with domestic violence programs to encourage the 
     development of programs, including outreach, support groups, 
     and counseling, targeted to victims of elder domestic 
     abuse.''.

     SEC. 203. STATE GRANTS.

       Section 303(a)(2)(C) of the Family Violence Prevention and 
     Services Act (42 U.S.C. 10402(a)(2)(C)) is amended by 
     inserting ``age,'' after ``because of''.

     SEC. 204. DEMONSTRATION GRANTS FOR COMMUNITY INITIATIVES.

       Section 318(b)(2)(F) of the Family Violence Prevention and 
     Services Act (42 U.S.C. 10418(b)(2)(F)) is amended by 
     inserting ``and adult protective services entities'' before 
     the semicolon.

     SEC. 205. STUDY REGARDING HEALTH PROFESSIONAL TRAINING WITH 
                   RESPECT TO DETECTION AND REFERRAL OF VICTIMS OF 
                   FAMILY VIOLENCE.

       The Family Violence Prevention and Services Act (42 U.S.C. 
     10401 et seq.) is amended by adding at the end the following:

[[Page S5439]]

     ``SEC. 319. STUDY REGARDING HEALTH PROFESSIONAL TRAINING WITH 
                   RESPECT TO DETECTION AND REFERRAL OF VICTIMS OF 
                   FAMILY VIOLENCE.

       ``(a) In General.--The Secretary shall request that the 
     Institute of Medicine of the National Academy of Sciences, in 
     collaboration with the Family Violence Prevention Fund, 
     conduct a study of the adequacy of training for health 
     professionals with respect to the detection and referral of 
     victims of family violence.
       ``(b) Purpose of Study.--The study conducted under this 
     section shall--
       ``(1) determine the number of teaching institutions that 
     incorporate training for health professionals in the area of 
     domestic violence and elder abuse;
       ``(2) assess whether when such training is available, the 
     training is adequate for both detection and referral of 
     victims of domestic violence and elder abuse; and
       ``(3) examine whether increased training is needed with 
     respect to detection of domestic violence and elder abuse.
       ``(c) Recommendations.--The Secretary shall ensure that the 
     Institute of Medicine, in consultation with the Family 
     Violence Prevention Fund and based on the results of the 
     study under this section, develops recommendations for 
     improvements in training for health professionals with 
     respect to detection and referral of victims of family 
     violence, through legislative or nonlegislative means.
       ``(d) Factors for Consideration.--In developing the 
     recommendations described in subsection (c), the Secretary 
     shall ensure that Institute of Medicine--
       ``(1) examines whether preferences, in federally funded 
     educational programs for medical educational entities that 
     include domestic violence and elder abuse training in the 
     curricula of the entities, are effective in providing an 
     incentive for incorporation of such training in the 
     curricula;
       ``(2) determines whether there are other legislative means 
     that may be effective in encouraging the training described 
     in paragraph (1), such as grant programs for curriculum 
     development; and
       ``(3) determines an appropriate level of funding for any 
     such grant program recommended.
       ``(e) Report.--The Secretary shall ensure that, not later 
     than 12 months after the date of enactment of the Older 
     Women's Protection From Violence Act of 1998, a report 
     concerning the study conducted under this section is prepared 
     by the Institute of Medicine and submitted to Congress.''.
                 TITLE III--OLDER AMERICANS ACT OF 1965

     SEC. 301. DEFINITIONS.

       Section 102 of the Older Americans Act of 1965 (42 U.S.C. 
     3002) is amended by adding at the end the following:
       ``(45) The term `domestic violence' means an act or threat 
     of violence, not including an act of self defense, 
     committed--
       ``(A) by a current or former spouse of the victim;
       ``(B) by a person related by blood or marriage to the 
     victim;
       ``(C) by a person who is cohabiting with or has cohabited 
     with the victim;
       ``(D) by a person with whom the victim shares a child in 
     common;
       ``(E) by a person who is or has been in the social 
     relationship of a romantic or intimate nature with the 
     victim; or
       ``(F) by a person similarly situated to a spouse of the 
     victim, or by any other person, if the domestic or family 
     violence laws of the jurisdiction of the victim provide for 
     legal protection of the victim from the person.
       ``(46) The term `sexual assault' has the meaning given the 
     term in section 2003 of the Omnibus Crime Control and Safe 
     Streets Act of 1968 (42 U.S.C. 3796gg-2).''.

     SEC. 302. RESEARCH ABOUT THE SEXUAL ASSAULT OF WOMEN WHO ARE 
                   OLDER INDIVIDUALS.

       Section 202(d)(3)(C) of the Older Americans Act of 1965 (42 
     U.S.C. 3012(d)(3)(C)) is amended--
       (1) by striking ``and'' at the end of clause (i);
       (2) by striking the period at the end of clause (ii) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(iii) in establishing research priorities under clause 
     (i), consider the importance of research about the sexual 
     assault of women who are older individuals.''.

     SEC. 303. STATE LONG-TERM CARE OMBUDSMAN PROGRAM.

       Section 303(a)(1) of the Older Americans Act of 1965 (42 
     U.S.C. 3023(a)(1)) is amended by inserting before the period 
     the following: ``, except that for grants to carry out 
     section 321(a)(10), there are authorized to be appropriated 
     such sums as may be necessary without fiscal year 
     limitation''.

     SEC. 304. DOMESTIC VIOLENCE SHELTERS AND PROGRAMS FOR OLDER 
                   INDIVIDUALS.

       Section 422(b) of the Older Americans Act of 1965 (42 
     U.S.C. 3035a(b)) is amended--
       (1) by striking ``and'' at the end of paragraph (11);
       (2) by striking the period at the end of paragraph (12) and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(13) expand access to domestic violence shelters and 
     programs, including mental health services, for older 
     individuals and encourage the use of senior housing, nursing 
     homes, or other suitable facilities or services when 
     appropriate as emergency short-term shelters or measures for 
     older individuals who are the victims of elder abuse, 
     including domestic violence, and sexual assault, against 
     older individuals; and
       ``(14) promote research on legal, organizational, or 
     training impediments to providing services to older 
     individuals through shelters and programs, such as 
     impediments to provision of the services in coordination with 
     delivery of health care or senior services.''.

     SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

       (a) Ombudsman Program.--Section 702(a) of the Older 
     Americans Act of 1965 (42 U.S.C. 3058a(a)) is amended to read 
     as follows:
       ``(a) Ombudsman Program.--There are authorized to be 
     appropriated to carry out chapter 2 such sums as may be 
     necessary without fiscal year limitation.''.
       (b) Elder Abuse Prevention Program.--Section 702(b) of the 
     Older Americans Act of 1965 (42 U.S.C. 3058a(b)) is amended 
     to read as follows:
       ``(b) Prevention of Elder Abuse, Neglect, and 
     Exploitation.--There are authorized to be appropriated to 
     carry out chapter 3 such sums as may be necessary without 
     fiscal year limitation.''.

     SEC. 306. COMMUNITY INITIATIVES AND OUTREACH.

       Title VII of the Older Americans Act of 1965 (42 U.S.C. 
     3058 et seq.) is amended--
       (1) by redesignating subtitle C as subtitle D;
       (2) by redesignating sections 761 through 764 as sections 
     771 through 774, respectively; and
       (3) by inserting after subtitle B the following:
            ``Subtitle C--Community Initiatives and Outreach

     ``SEC. 761. COMMUNITY INITIATIVES TO COMBAT ELDER ABUSE, 
                   NEGLECT, AND EXPLOITATION.

       ``(a) In General.--The Assistant Secretary shall make 
     grants to nonprofit private organizations or tribal 
     organizations to support projects in local communities, 
     involving diverse sectors of each community, to coordinate 
     activities concerning intervention in and prevention of elder 
     abuse, neglect, and exploitation, including domestic 
     violence, and sexual assault, against older individuals.
       ``(b) Award Requirement.--In awarding grants under 
     subsection (a) the Assistant Secretary shall take into 
     consideration--
       ``(1) State and tribal efforts to carry out the activities 
     described in such subsection; and
       ``(2) encouraging coordination among the State and tribal 
     efforts, State adult protective service activities, and 
     activities of private nonprofit organizations.

     ``SEC. 762. OUTREACH TO OLDER INDIVIDUALS.

       ``(a) In General.--The Assistant Secretary shall make 
     grants to develop and implement outreach programs directed 
     toward assisting older individuals who are victims of elder 
     abuse, neglect, and exploitation (including domestic 
     violence, and sexual assault, against older individuals), 
     including programs directed toward assisting the individuals 
     in senior housing complexes, nursing homes, board and care 
     facilities, and senior centers.
       ``(b) Award Requirement.--In awarding grants under 
     subsection (a) the Assistant Secretary shall take into 
     consideration--
       ``(1) State and tribal efforts to develop and implement 
     outreach programs described in such subsection; and
       ``(2) encouraging coordination among the State and tribal 
     efforts, State adult protective service activities, and 
     activities of private nonprofit organizations.

     ``SEC. 763. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subtitle such sums as may be necessary without fiscal year 
     limitation.''.

     SEC. 307. TRAINING FOR HEALTH PROFESSIONALS, AND OTHER 
                   PROVIDERS OF SERVICES TO OLDER INDIVIDUALS, ON 
                   SCREENING FOR ELDER ABUSE, NEGLECT, AND 
                   EXPLOITATION.

       Section 411 of the Older Americans Act of 1965 (42 U.S.C. 
     3031) is amended by adding at the end the following:
       ``(f)(1) The Assistant Secretary for Aging shall, in 
     consultation with the Assistant Secretary for Children and 
     Families, the Surgeon General, the Indian Health Service, the 
     Director of the National Institute on Aging, the Family 
     Violence Prevention Fund, the National Center on Elder Abuse, 
     the National Coalition Against Domestic Violence, and other 
     specialists working in the areas of domestic violence against 
     seniors and elder abuse, update and improve curricula and 
     implement continuing education training programs for adult 
     protective service workers, persons carrying out a State 
     Long-Term Care Ombudsman program, health care providers 
     (including home health care providers) and mental health 
     providers (including specialists), social workers, clergy, 
     domestic violence service providers, and other community-
     based social service providers in settings, including senior 
     centers, adult day care facilities, nursing homes, board and 
     care facilities, senior housing, and the homes of older 
     individuals, to improve the ability of the persons using the 
     curriculum and training programs to recognize and address 
     instances of elder abuse, neglect, and exploitation, 
     including domestic violence, and sexual assault, against 
     older individuals.
       ``(2) In carrying out paragraph (1), the Assistant 
     Secretary shall develop and implement separate curricula and 
     training programs for medical students, physicians, mental 
     health providers, physician assistants, nurse practitioners, 
     nurses, and social workers.

[[Page S5440]]

       ``(3) In carrying out paragraph (1), the Assistant 
     Secretary shall provide information about the curricula and 
     training programs to entities described in sections 791(c)(2) 
     and 860(f)(2) of the Public Health Service Act (42 U.S.C. 
     295j(c)(2) and 298b-7(f)(2)) that seek grants or contracts 
     under title VII or VIII of such Act.''.
                  TITLE IV--PUBLIC HEALTH SERVICE ACT

     SEC. 401. AREA HEALTH EDUCATION CENTERS.

       Subparagraphs (D) and (E) of section 746(d)(2) of the 
     Public Health Service Act (42 U.S.C. 293j(d)(2) are each 
     amended by inserting ``, which may include training in 
     domestic violence and elder abuse screening and referral 
     protocols'' before the semicolon.

     SEC. 402. GERIATRIC CENTERS AND TRAINING.

       (a) Geriatric Education Centers.--Section 777(a)(4) of the 
     Public Health Service Act (42 U.S.C. 294o(a)(4)) is amended 
     by inserting ``, including training and retraining of faculty 
     to provide instruction regarding identification and treatment 
     of older individuals who are the victims of domestic violence 
     and elder abuse'' before the semicolon.
       (b) Geriatric Training Regarding Physicians and Dentists.--
     Section 777(b)(2)(D) of the Public Health Service Act (42 
     U.S.C. 294o(b)(2)(D)) is amended--
       (1) by striking ``and exposure'' and inserting ``, 
     exposure''; and
       (2) by inserting ``, and screening for elder abuse and 
     domestic abuse,'' after ``of elderly individuals''.
          TITLE V--FINANCIAL EXPLOITATION OF OLDER INDIVIDUALS

     SEC. 501. STUDY AND REPORT.

       (a) Definitions.--In this section--
       (1) the term ``financial exploitation'' means any fraud, 
     coercion, or other conduct by a caregiver, family member, or 
     fiduciary that constitutes a violation of any Federal, State, 
     or tribal law, including any legally enforceable professional 
     standard applicable to any profession or occupation;
       (2) the term ``financial institution'' has the meaning 
     given the term in section 1101 of the Right to Financial 
     Privacy Act of 1978 (12 U.S.C. 3401);
       (3) the term ``older individual'' has the meaning given the 
     term in section 102 of the Older Americans Act of 1965 (42 
     U.S.C. 3002); and
       (4) the term ``Secretary'' means the Secretary of the 
     Treasury.
       (b) Study.--The Secretary, in consultation with the 
     Attorney General of the United States, State attorneys 
     general, and tribal and local prosecutors, shall conduct a 
     study of the nature and extent of financial exploitation of 
     older individuals.
       (c) Consultation.--In conducting the study under this 
     section, the Secretary shall solicit comments and information 
     from--
       (1) senior citizen advocacy groups;
       (2) law centers specializing in elder law;
       (3) financial institutions;
       (4) elder abuse coalitions;
       (5) privacy experts;
       (6) providers of adult protective services;
       (7) Indian tribes, the Director of Indian Health Service of 
     the Department of Health and Human Services, and the 
     Commissioner of Indian Affairs of the Department of the 
     Interior;
       (8) State Long-Term Care Ombudsmen described in the Older 
     Americans Act of 1965 (42 U.S.C. 3001 et seq.);
       (9) area agencies on aging (as defined in section 102 of 
     the Older Americans Act of 1965 (42 U.S.C. 3002));
       (10) recipients of grants under title VI of the Older 
     Americans Act of 1965 (42 U.S.C. 3057 et seq.); and
       (11) other service providers.
       (d) Purpose of Study.--In conducting the study under this 
     section, the Secretary shall--
       (1) define and describe the scope of the problem of 
     financial exploitation of older individuals;
       (2) conduct a survey of financial institutions in order to 
     obtain--
       (A) an estimate of the number and type of financial 
     transactions that are considered by those institutions to 
     constitute financial exploitation of older individuals; and
       (B) a detailed description of the types and characteristics 
     of risk faced by elderly customers with respect to financial 
     exploitation;
       (3) examine whether Federal, State, and tribal laws and 
     regulatory practices are adequate to protect older 
     individuals from financial exploitation; and
       (4) examine the extent to which a better public 
     understanding of Federal, State, and tribal laws would help 
     to prevent financial exploitation of older individuals, 
     including an examination regarding whether improved training 
     of officers, employees, and agents of financial institutions 
     concerning their responsibilities under section 1103 of the 
     Right to Financial Privacy Act of 1978 (12 U.S.C. 3403) would 
     help to combat the problem of financial exploitation of older 
     individuals.
       (e) Recommendations.--
       (1) In general.--Based on the results of the study under 
     this section, the Secretary, in consultation with the 
     Attorney General and State attorneys general, shall develop 
     recommendations for legislative or other action to prevent 
     the financial exploitation of older individuals.
       (2) Factors for consideration.--In developing the 
     recommendations under paragraph (1), the Secretary shall--
       (A) balance the needs of older individuals to be free from 
     financial exploitation with their need for financial privacy, 
     and their right against self-incrimination;
       (B) consider the most effective and least intrusive 
     legislative solutions to combat the problem of financial 
     exploitation of older individuals;
       (C) with respect to the reporting of incidences of 
     financial exploitation of older individuals, consider--
       (i) the appropriate Federal, State, or tribal agency to 
     which such incidences should be reported, and the means by 
     which a financial institution would obtain information 
     regarding the manner in which to report such an incidence; 
     and
       (ii) whether there should be limitations on the authority 
     of a financial institution to disclose information relating 
     to an older individual who is a customer of the financial 
     institution in order to combat the problem of financial 
     exploitation of older individuals, including limitations on--

       (I) the number of times such a disclosure may be made;
       (II) the number and type of governmental or tribal agencies 
     to which such a disclosure may be made; and
       (III) the duration of the authority of the financial 
     institution to make such a disclosure; and

       (D) whether there is a need for adult protective services 
     to combat such exploitation.
       (f) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report, which shall include--
       (1) the results of the study conducted under this section, 
     including an analysis of the extent of the problem of 
     financial exploitation of older individuals; and
       (2) the recommendations developed under subsection 
     (e).

 Ms. COLLINS. Mr. President, there is no conduct less 
consistent with the precepts of a civilized society than the physical 
abuse of those unable to defend themselves. Our recognition of this has 
led to an aggressive and ongoing campaign against child abuse, and it 
must lead to an equally strong response to domestic violence directed 
at older Americans. For that reason, I am honored to rise today to 
cosponsor the Older Women's Protection from Violence Act, legislation 
introduced by my distinguished colleague from Illinois, Senator Durbin, 
and I commend Senator Durbin for his leadership in this area.
  Mr. President, at a 1995 hearing in Portland, Maine, chaired by my 
predecessor, Senator Cohen, elder abuse was aptly described as 
``society's secret shame.'' Family violence, particularly when directed 
at the elderly, was a major concern of Senator Cohen, and I welcome the 
opportunity to continue his efforts to combat this intolerable 
mistreatment of older Americans.
  Mr. President, earlier this month my home state released its crime 
statistics for 1997. I was cheered by the wonderful news that crime 
fell by 8.7% from 1996, to the lowest rate in at least 20 years. Hidden 
behind this positive statistic, however, was one that was very 
disquieting, namely, that domestic violence increased by 7.8%. 
Ironically, at the same time as we are becoming less likely to be 
harmed by strangers, many of our neighbors face an increasing threat 
from members of their own households.
  National data demonstrate that cases of domestic elder abuse, which 
includes neglect as well as physical abuse, are steadily increasing. 
From 1986 to 1996, the number of cases went from 117,000 to 293,000, an 
increase of 150%. Furthermore, there is widespread agreement that this 
type of abuse is greatly underreported. For example, although the 
number of reported cases in 1994 was 241,000, the National Center on 
Elder Abuse estimates that the true number of cases was 818,000.
  Mr. President, while these numbers indicate a serious and growing 
problem, all of the statistics in the world do not describe the problem 
as eloquently as the words of a single victim. At the Maine hearing, 
one such victim told what happened to her at the hands of her husband 
after her children left home.

       [T]hings got really bad. I had two broken wrists, cracked 
     ribs, held down with his knee on my chest with a knife at my 
     throat. I was made to crawl across the floor with a gun 
     resting on my head, ready to fire. I've been choked until I 
     was limp, and then he would drop me on the floor with a kick. 
     I've been spit on, thrown through a window, dragged into the 
     lake as he said he was going to drown me.

Astonishingly, but not atypically, the witness was married to her 
husband for 44 years.
  Compounding the physical abuse suffered by elderly victims of 
violence is the sense of being trapped. Again, one of the witnesses at 
the Portland hearing described this far more effectively than I can.

       People ask why I remained under such circumstances. It was 
     fear that kept me

[[Page S5441]]

     there. . . . I had been on an island for eight years. Where 
     would I go? I had no money, no home, no job, and no credit. 
     Although I had left good jobs to follow him from job to job, 
     at age 60 who would hire me? Health insurance was my greatest 
     concern.

With a dependence on the abuser for financial support and physical 
care, with a long history of emotional ties to that person, with the 
fear of being held up to ridicule, and with a sense of hopelessness 
about finding a way out of the predicament, it is hardly surprising 
that the elderly victim is often reluctant to report domestic assaults.
  Domestic violence against older women is a complex problem about 
which we still lack adequate information. This has led to some 
erroneous assumptions. For example, it had been thought that assaults 
against the elderly usually result from caregiver stress, but while 
this is a factor, its effect now appears to have been overstated. 
Indeed, according to a recent report, ``[a]busers are not identical in 
their behavior or their assumptions about abusive conduct.'' As the 
report points out, this means that a ``cookie cutter'' approach will 
not solve the problem.

  Furhter complicating our efforts to deal with domestic violence 
against older women are the conflicting feelings and desires of many of 
the victims. It is quite common for the victim to have a familial 
relationship with the abuser, and thus, far more is likely to be 
involved in dealing with these situations that in dealing with an 
assault committed by a stranger. For understandable reasons, the older 
woman may want to preserve the relationship while ending the abuse. 
Finding effective ways to accomplish this can be a formidable 
challenge.
  Mr. President, the legislation that Senator Durbin and I are 
introducing today recognizes that complex problems defy simple 
solutions. Thus, the Older Women's Protection from Violence Act does 
not purport to contain a magic bullet that will eliminate this 
reprehensible conduct, but rather looks to a multi-faceted approach to 
address a multi-faceted problem. Similarly, the bill does not offer 
revolutionary solutions; instead, its message is that the time has come 
for society to roll up its sleeves and engage in the hard work of 
protecting those who have contributed so much to our individual and 
collective well-being.
  In keeping with the nature of the problem, the legislation provides 
for training those who are in a position to identify cases of domestic 
violence against older women. Consistent with the notion that we cannot 
stop or correct what we do not discover, the primary recipients of that 
training would be law enforcement officers and health professionals. In 
addition, the Attorney General is authorized to make grants to law 
school clinical programs to include elder abuse cases.
  The bill reauthorizes and expands programs that provide services to 
battered older women. Such services include outreach, support, and 
counseling. It also enhances their access to domestic violence 
shelters, something that can mean the difference between life and death 
in some cases. I should emphasize that the provision of these services 
will be largely at the local level, with financial assistance from the 
federal government.
  Mr. President, in a prior position, I managed a state agency that has 
as one of its principal mandates that protection of Maine people, many 
of them elderly, from fraud and other financial abuses. Thus, I am 
especially pleased that in addition to addressing violence against 
older women, this bill seeks to shed light on a problem affecting the 
elderly that has received even less attention, namely, their financial 
exploitation by a caregiver or family member.
  Two cases discussed at the Maine hearing illustrate my point. In one, 
an elderly gentleman from southern Maine went without food because his 
two nephews were stealing his money. Yet, he refused to send them away 
because they were ``family.'' In the second case, a 75-year old eastern 
Maine woman returned from the hospital after a severe stroke to find 
that her daughter and son-in-law had changed the locks on her house. 
The physical and emotional impact of the experience was so great that 
she was unable to undertake the legal battle to reclaim her home.
  This bill will shed light on this type of abuse by requiring the 
Secretary of the Treasury to conduct a study of the nature and extent 
of financial exploitation of older individuals. Our society simply 
cannot allow our senior citizens who have labored hard to build up a 
nest egg to have it wrongfully taken from them a the time they need it 
most.
  Mr. President, interest in elder abuse did not begin in our country 
until the late 1980s, long after we began to focus on child abuse in 
the 1960s. This may be because these cases are among the least likely 
to be reported. It may also be because our culture tends to worship 
youth, perhaps giving our older citizens the sense that we care less 
about them. In any case, this must change, not only because of 
demographic trends, but also because it is right.
  This bill will contribute to that change by dealing specifically with 
domestic violence against older women. In addition to providing 
services to the victims of this conduct, it funds research into various 
aspects of the problem to enhance our understanding and improve our 
ability to respond. Our secret shame must not remain a secret.
  Mr. President, in 1996 the average age of elder abuse victims was 78. 
There can be no justification for letting these older Americans, who 
have reached the point in life where they deserve peace, comfort, and 
respect, to be the victims of domestic violence or any other form of 
abuse. This bill is designed to prevent that, and I trust that my 
colleagues will support us in the effort.
                                 ______
                                 
      By Mr. ROCKEFELLER (for himself and Ms. Mikulski):
  S. 2115. A bill to amend title 38, United States Code, to establish a 
scholarship program and an education loan debt reduction program to 
facilitate the employment of primary care and other health care 
professional by the Veterans Health Administration, and for other 
purposes; to the Committee on Veterans' Affairs.


department of veterans affairs primary care providers incentive act of 
                                  1998

 Mr. ROCKEFELLER. Mr. President, I am pleased today to 
introduce the following legislation, ``The Department of Veterans 
Affairs Primary Care Providers Incentive Act of 1998.'' This 
legislation is intended to revitalize the VA's Health Professionals 
Education Assistance Program, thereby reducing waste, targeting primary 
care professions and under-served areas, and making the VA more 
competitive with private employers for skilled personnel. I am pleased 
to be joined by my respected colleague from Maryland, Senator Mikulski, 
in this effort. I urge our colleagues to join us in supporting this 
legislation.
  The VA health care system is in the midst of a major reorganization 
that is simultaneously reducing the current workforce and creating the 
need for more primary care health professionals. This reorganization 
has dramatically changed the way the VA delivers health care, by 
shifting the emphasis to outpatient rather than inpatient care. As part 
of this process, the Department of Veterans Affairs has set a goal of 
doubling the number of primary care providers in the VA health care 
system, and we want to assist them. There are two good ways to hire and 
keep highly skilled professionals--offer incentives to current 
employees to get training in new areas of need by providing 
scholarships, and recruit new primary care providers by offering 
assistance in paying off student loans. This legislation, which 
includes both a scholarship program and an education debt reduction 
program, can help.
  The VA needs educational assistance programs such as these to 
effectively recruit and retain trained primary care health 
professionals. In the VA hospitals and clinics, some of the most 
difficult positions to fill are those of nurse practitioners, physical 
therapists, and occupational therapists. In my home state of West 
Virginia, for example, at one of the VA hospitals there has been a 
vacancy for an occupational therapist for over twelve years! Two of the 
VA hospitals have no physical therapists at all. This is simply 
unacceptable.
  The plain fact is that the VA cannot offer the same starting salaries 
as those available in private practice. The Education Debt Reduction 
Program included within the Primary Care Providers Incentive Act gives 
the VA a financial recruitment tool that will be

[[Page S5442]]

an enormous help in making the VAMCs more competitive for these much-
needed and highly skilled individuals. This program was first designed 
by Senator Mikulski in 1993 in recognition of this very problem. It was 
needed then, and it is still needed now.
  Recruitment is only half the problem in building a new workforce that 
is geared toward providing primary care. Retention of trained people, 
especially in the face of low morale due to budget cuts, is equally 
important. The scholarship program in this legislation is designed to 
answer this very need. Eligibility is limited to current VA employees, 
thus enabling VA to build staff morale. The scholarship program 
provides a means for vulnerable employees to protect themselves against 
future RIFs by acquiring training in the new areas of need. And, VA 
gets the workforce they need, composed of motivated and loyal 
employees.
  Professional associations representing primary care health workers, 
VAMC human resources personnel, and past recipients of VA scholarships 
are strongly in support of this legislation. Although this is a time of 
budget reductions in health care, these programs are a worthwhile 
investment, enhancing morale of the VA health care providers in the 
short term, while building a workforce that matches VA's needs and 
improves veterans' health care in the long run.
  Mr. President, I ask that the text of the bill be printed in the 
Record at this point.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2115

       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 ``Department of Veterans 
     Affairs Primary Care Providers Incentive Act of 1998''.

     SEC. 2. SCHOLARSHIP PROGRAM FOR DEPARTMENT OF VETERANS 
                   AFFAIRS EMPLOYEES RECEIVING EDUCATION OR 
                   TRAINING IN THE HEALTH PROFESSIONS.

       (a) Program Authority.--(1) Chapter 76 of title 38, United 
     States Code, is amended by adding at the end the following 
     new subchapter:

        ``SUBCHAPTER VI--EMPLOYEE INCENTIVE SCHOLARSHIP PROGRAM

     ``Sec. 7671. Authority for program

       ``As part of the Educational Assistance Program, the 
     Secretary shall carry out a scholarship program under this 
     subchapter. The program shall be known as the Department of 
     Veterans Affairs Employee Incentive Scholarship Program 
     (hereinafter in this subchapter referred to as the 
     `Program').

     ``Sec. 7672. Eligibility; agreement

       ``(a) Eligibility.--To be eligible to participate in the 
     Program, an individual--
       ``(1) must be an eligible Department employee who is 
     accepted for enrollment or enrolled (as described in section 
     7602 of this title) as a full-time or part-time student in a 
     field of education or training described in subsection (c); 
     and
       ``(2) must demonstrate financial need, as determined under 
     regulations prescribed by the Secretary.
       ``(b) Eligible Department Employees.--For purposes of 
     subsection (a), an eligible Department employee is any 
     employee of the Department who, as of the date on which the 
     employee submits an application for participation in the 
     Program, has been continuously employed by the Department for 
     not less than two years.
       ``(c) Qualifying Fields of Education or Training.--A 
     scholarship may be awarded under the Program only for 
     education and training in a field leading to appointment or 
     retention in a position under section 7401 of this title.
       ``(d) Preference in Award of Scholarships.--(1) 
     Notwithstanding section 7603(d) of this title and subject to 
     paragraph (2), in selecting participants in the Program, the 
     Secretary shall give preference to the following applicants, 
     in the order specified:
       ``(A) Applicants who are or will be pursuing a course of 
     education or training in a field relating to the provision of 
     primary care health services, as designated by the Secretary.
       ``(B) Applicants who are employed at Department health-care 
     facilities located in rural areas or at which there is an 
     inadequate supply of individuals qualified to hold a position 
     under section 7401 of this title, as so designated.
       ``(2) In the case of a pool of applicants covered by 
     subparagraph (A) or (B) of paragraph (1), the Secretary shall 
     give preference in the award of scholarships to the members 
     of the pool who have the greatest financial need.
       ``(3) The Secretary shall maintain, and update 
     periodically, a list setting forth--
       ``(A) the fields of education or training covered by 
     subparagraph (A) of paragraph (1); and
       ``(B) the facilities covered by subparagraph (B) of that 
     paragraph.
       ``(e) Agreement.--(1) An agreement between the Secretary 
     and a participant in the Program shall (in addition to the 
     requirements set forth in section 7604 of this title) include 
     the following:
       ``(A) The Secretary's agreement to provide the participant 
     with a scholarship under the Program for a specified number 
     (from one to three) of school years during which the 
     participant pursues a course of education or training 
     described in subsection (c) that meets the requirements set 
     forth in section 7602(a) of this title.
       ``(B) The participant's agreement to serve as a full-time 
     employee in the Veterans Health Administration for a period 
     of time (hereinafter in this subchapter referred to as the 
     `period of obligated service') of one calendar year for each 
     school year or part thereof for which the participant was 
     provided a scholarship under the Program, but for not less 
     than two years.
       ``(C) The participant's agreement to serve under 
     subparagraph (B) in a Department facility selected by the 
     Secretary.
       ``(2) In a case in which an extension is granted under 
     section 7673(c)(2) of this title, the number of years for 
     which a scholarship may be provided under the Program shall 
     be the number of school years provided for as a result of the 
     extension.
       ``(3) In the case of a participant who is a part-time 
     student--
       ``(A) the period of obligated service shall be reduced in 
     accordance with the proportion that the number of credit 
     hours carried by such participant in any such school year 
     bears to the number of credit hours required to be carried by 
     a full-time student in the course of training being pursued 
     by the participant, but in no event to less than one year; 
     and
       ``(B) the agreement shall include the participant's 
     agreement to maintain employment, while enrolled in such 
     course of education or training, as a Department employee 
     permanently assigned to a Department health-care facility.

     ``Sec. 7673. Scholarship

       ``(a) Scholarship.--A scholarship provided to a participant 
     in the Program for a school year shall consist of payment of 
     the tuition of the participant for that school year and 
     payment of other reasonable educational expenses (including 
     fees, books, and laboratory expenses) for that school year.
       ``(b) Amounts.--The total amount of the scholarship payable 
     under subsection (a)--
       ``(1) in the case of a participant in the Program who is a 
     full-time student, may not exceed $10,000 for any one year; 
     and
       ``(2) in the case of a participant in the Program who is a 
     part-time student, shall be the amount specified in paragraph 
     (1) reduced in accordance with the proportion that the number 
     of credit hours carried by the participant in that school 
     year bears to the number of credit hours required to be 
     carried by a full-time student in the course of education or 
     training being pursued by the participant.
       ``(c) Limitation on Years of Payment.--(1) Subject to 
     paragraph (2), a participant in the Program may not receive a 
     scholarship under subsection (a) for more than three school 
     years.
       ``(2) The Secretary may extend the number of school years 
     for which a scholarship may be awarded to a participant in 
     the Program who is a part-time student to a maximum of six 
     school years if the Secretary determines that the extension 
     would be in the best interest of the United States.
       ``(d) Payment of Educational Expenses by Educational 
     Institutions.--The Secretary may arrange with an educational 
     institution in which a participant in the Program is enrolled 
     for the payment of the educational expenses described in 
     subsection (a). Such payments may be made without regard to 
     subsections (a) and (b) of section 3324 of title 31.

     ``Sec. 7674. Status of certain participants

       ``(a) Status.--A participant in the Program described in 
     subsection (b) shall not, by reason of such participation--
       ``(1) be considered an employee of the Federal Government; 
     or
       ``(2) be counted against any personnel ceiling affecting 
     the Veterans Health Administration.
       ``(b) Covered Participants.--Subsection (a) applies in the 
     case of any participant in the Program who is a student on a 
     full-time basis and is not performing service for the 
     Department.

     ``Sec. 7675. Obligated service

       ``(a) In General.--Each participant in the Program shall 
     provide service as a full-time employee of the Department for 
     the period of obligated service provided in the agreement of 
     the participant entered into under section 7603 of this 
     title. Such service shall be provided in the full-time 
     clinical practice of such participant's profession or in 
     another health-care position in an assignment or location 
     determined by the Secretary.
       ``(b) Determination of Service Commencement Date.--(1) Not 
     later than 60 days before a participant's service 
     commencement date, the Secretary shall notify the participant 
     of that service commencement date. That date is the date for 
     the beginning of the participant's period of obligated 
     service.
       ``(2) As soon as possible after a participant's service 
     commencement date, the Secretary shall--
       ``(A) in the case of a participant who is not a full-time 
     employee in the Veterans Health

[[Page S5443]]

     Administration, appoint the participant as such an employee; 
     and
       ``(B) in the case of a participant who is an employee in 
     the Veterans Health Administration but is not serving in a 
     position for which the participant's course of education or 
     training prepared the participant, assign the participant to 
     such a position.
       ``(3)(A) In the case of a participant receiving a degree 
     from a school of medicine, osteopathy, dentistry, optometry, 
     or podiatry, the participant's service commencement date is 
     the date upon which the participant becomes licensed to 
     practice medicine, osteopathy, dentistry, optometry, or 
     podiatry, as the case may be, in a State.
       ``(B) In the case of a participant receiving a degree from 
     a school of nursing, the participant's service commencement 
     date is the later of--
       ``(i) the participant's course completion date; or
       ``(ii) the date upon which the participant becomes licensed 
     as a registered nurse in a State.
       ``(C) In the case of a participant not covered by 
     subparagraph (A) or (B), the participant's service 
     commencement date is the later of--
       ``(i) the participant's course completion date; or
       ``(ii) the date the participant meets any applicable 
     licensure or certification requirements.
       ``(4) The Secretary shall by regulation prescribe the 
     service commencement date for participants who were part-time 
     students. Such regulations shall prescribe terms as similar 
     as practicable to the terms set forth in paragraph (3).
       ``(c) Commencement of Obligated Service.--(1) Except as 
     provided in paragraph (2), a participant in the Program shall 
     be considered to have begun serving the participant's period 
     of obligated service--
       ``(A) on the date, after the participant's course 
     completion date, on which the participant (in accordance with 
     subsection (b)) is appointed as a full-time employee in the 
     Veterans Health Administration; or
       ``(B) if the participant is a full-time employee in the 
     Veterans Health Administration on such course completion 
     date, on the date thereafter on which the participant is 
     assigned to a position for which the participant's course of 
     training prepared the participant.
       ``(2) A participant in the Program who on the participant's 
     course completion date is a full-time employee in the 
     Veterans Health Administration serving in a capacity for 
     which the participant's course of training prepared the 
     participant shall be considered to have begun serving the 
     participant's period of obligated service on such course 
     completion date.
       ``(d) Course Completion Date Defined.--In this section, the 
     term `course completion date' means the date on which a 
     participant in the Program completes the participant's course 
     of education or training under the Program.

     ``Sec. 7676. Breach of agreement: liability

       ``(a) Liquidated Damages.--A participant in the Program 
     (other than a participant described in subsection (b)) who 
     fails to accept payment, or instructs the educational 
     institution in which the participant is enrolled not to 
     accept payment, in whole or in part, of a scholarship under 
     the agreement entered into under section 7603 of this title 
     shall be liable to the United States for liquidated damages 
     in the amount of $1,500. Such liability is in addition to any 
     period of obligated service or other obligation or liability 
     under the agreement.
       ``(b) Liability During Course of Education or Training.--
     (1) Except as provided in subsection (d), a participant in 
     the Program shall be liable to the United States for the 
     amount which has been paid to or on behalf of the participant 
     under the agreement if any of the following occurs:
       ``(A) The participant fails to maintain an acceptable level 
     of academic standing in the educational institution in which 
     the participant is enrolled (as determined by the educational 
     institution under regulations prescribed by the Secretary).
       ``(B) The participant is dismissed from such educational 
     institution for disciplinary reasons.
       ``(C) The participant voluntarily terminates the course of 
     education or training in such educational institution before 
     the completion of such course of education or training.
       ``(D) The participant fails to become licensed to practice 
     medicine, osteopathy, dentistry, podiatry, or optometry in a 
     State, fails to become licensed as a registered nurse in a 
     State, or fails to meet any applicable licensure requirement 
     in the case of any other health-care personnel who provide 
     either direct patient-care services or services incident to 
     direct patient-care services, during a period of time 
     determined under regulations prescribed by the Secretary.
       ``(E) In the case of a participant who is a part-time 
     student, the participant fails to maintain employment, while 
     enrolled in the course of training being pursued by the 
     participant, as a Department employee.
       ``(2) Liability under this subsection is in lieu of any 
     service obligation arising under a participant's agreement.
       ``(c) Liability During Period of Obligated Service.--(1) 
     Except as provided in subsection (d), if a participant in the 
     Program breaches the agreement by failing for any reason to 
     complete such participant's period of obligated service, the 
     United States shall be entitled to recover from the 
     participant an amount determined in accordance with the 
     following formula:

 
                                              t-s
         A=3F                 (       -------------------        )
                                               t
------------------------------------------------------------------------
 

       ``(2) In such formula:
       ``(A) `A' is the amount the United States is entitled to 
     recover.
       ``(B) `F' is the sum of--
       ``(i) the amounts paid under this subchapter to or on 
     behalf of the participant; and
       ``(ii) the interest on such amounts which would be payable 
     if at the time the amounts were paid they were loans bearing 
     interest at the maximum legal prevailing rate, as determined 
     by the Treasurer of the United States.
       ``(C) `t' is the total number of months in the 
     participant's period of obligated service, including any 
     additional period of obligated service in accordance with 
     section 7673(c)(2) of this title.
       ``(D) `s' is the number of months of such period served by 
     the participant in accordance with section 7673 of this 
     title.
       ``(d) Limitation on Liability for Reductions-in-Force.--
     Liability shall not arise under subsection (b)(1)(E) or (c) 
     in the case of a participant otherwise covered by the 
     subsection concerned if the participant fails to maintain 
     employment as a Department employee due to a reduction-in-
     force.
       ``(e) Period for Payment of Damages.--Any amount of damages 
     which the United States is entitled to recover under this 
     section shall be paid to the United States within the one-
     year period beginning on the date of the breach of the 
     agreement.

     ``Sec. 7677. Expiration of program

       ``The Secretary may not furnish scholarships to individuals 
     who commence participation in the Program after December 31, 
     2001.''.
       (2) The table of sections at the beginning of chapter 76 of 
     title 38, United States Code, is amended by adding at the end 
     the following:

        ``SUBCHAPTER VI--EMPLOYEE INCENTIVE SCHOLARSHIP PROGRAM

``7671. Authority for program.
``7672. Eligibility; agreement.
``7673. Scholarship.
``7674. Status of certain participants.
``7675. Obligated service.
``7676. Breach of agreement: liability.
``7677. Expiration of program.''.
       (b) Regulations.--The Secretary of Veterans Affairs may 
     treat regulations prescribed subchapter II of chapter 76 of 
     title 38, United States Code, as regulations required under 
     subchapter VI of that chapter, as added by subsection (a), 
     but only to the extent that the regulations prescribed under 
     such subchapter II are not inconsistent with the provisions 
     of such subchapter VI.

     SEC. 3. EDUCATION DEBT REDUCTION PROGRAM FOR VETERANS HEALTH 
                   ADMINISTRATION HEALTH PROFESSIONALS.

       (a) Program Authority.--Chapter 76 of title 38, United 
     States Code (as amended by section 2), is further amended by 
     adding after subchapter VI the following new subchapter:

           ``SUBCHAPTER VII--EDUCATION DEBT REDUCTION PROGRAM

     ``Sec. 7681. Authority for program

       ``(a) In General.--(1) As part of the Educational 
     Assistance Program, the Secretary may carry out an education 
     debt reduction program under this subchapter. The program 
     shall be known as the Department of Veterans Affairs Primary 
     Care Workers Education Debt Reduction Program (hereinafter in 
     this subchapter referred to as the `Education Debt Reduction 
     Program').
       ``(2) The purpose of the Education Debt Reduction Program 
     is to assist personnel serving in health-care positions in 
     the Veterans Health Administration in reducing the amount of 
     debt incurred by such personnel in completing programs of 
     education or training that qualified such personnel for such 
     service.
       ``(b) Relationship to Educational Assistance Program.--
     Education debt reduction payments under the Education Debt 
     Reduction Program shall be in addition to other assistance 
     available to individuals under the Educational Assistance 
     Program.

     ``Sec. 7682. Eligibility

       ``(a) Eligibility.--An individual eligible to participate 
     in the Education Debt Reduction Program is any individual 
     who--
       ``(1) is serving in a position in the Veterans Health 
     Administration under an appointment under section 7402(b) of 
     this title; and
       ``(2) owes any amount of principal or interest under a loan 
     the proceeds of which were used by or on behalf of the 
     individual to pay costs relating to a course of education or 
     training which led to a degree that qualified the individual 
     for a position referred to in paragraph (1).
       ``(b) Covered Costs.--For purposes of subsection (a)(2), 
     costs relating to a course of education or training include--
       ``(1) tuition expenses;
       ``(2) all other reasonable educational expenses, including 
     expenses for fees, books, and laboratory expenses; and
       ``(3) reasonable living expenses.

     ``Sec. 7683. Preference

       ``(a) Preference.--Notwithstanding section 7603(d) of this 
     title, in selecting individuals for education debt reduction 
     payments

[[Page S5444]]

     under the Education Debt Reduction Program, the Secretary 
     shall give preference to the following (in the order 
     specified):
       ``(1) Individuals recently appointed by the Secretary to 
     positions under section 7401 of this title in fields relating 
     to primary care health services, as designated by the 
     Secretary.
       ``(2) Individuals recently appointed by the Secretary to 
     positions under such section in areas in which the 
     recruitment or retention of an adequate supply of qualified 
     health-care personnel is difficult, as so designated.
       ``(3) Any other individuals serving in appointments to 
     positions described in paragraphs (1) and (2).
       ``(b) Recently Appointed Individuals.--An individual shall 
     be treated as recently appointed to a position for purposes 
     of subsection (a) if the individual was appointed to the 
     position not more than 6 months before the date of treatment 
     for such purposes.

     ``Sec. 7684. Education debt reduction

       ``(a) In General.--Education debt reduction payments under 
     the Education Debt Reduction Program shall consist of 
     payments to individuals selected to participate in the 
     program of amounts to reimburse such individuals for payments 
     by such individuals of principal and interest on loans 
     described in section 7682(a)(2) of this title.
       ``(b) Frequency of Payment.--(1) The Secretary may make 
     education debt reduction payments to any given participant in 
     the Education Debt Reduction Program on a monthly or annual 
     basis, at the election of the Secretary.
       ``(2) The Secretary shall make such payments at the end of 
     the period elected by the Secretary under paragraph (1).
       ``(c) Performance Requirement.--The Secretary may make 
     education debt reduction payments to a participant in the 
     Education Debt Reduction Program for a period only if the 
     Secretary determines that the individual maintained an 
     acceptable level of performance in the position or positions 
     served by the participant during the period.
       ``(d) Maximum Annual Amount.--(1) Subject to paragraph (2), 
     the total amount of education debt reduction payments made to 
     a participant for a year under the Education Debt Reduction 
     Program shall be--
       ``(A) $6,000 for the first year of the participant's 
     participation in such Program;
       ``(B) $8,000 for the second year of the participant's 
     participation in such Program; and
       ``(C) $10,000 for the third year of the participant's 
     participation in such Program.
       ``(2) The total amount payable to a participant in such 
     Program for any year may not exceed the amount of the 
     principle and interest on loans referred to in subsection (a) 
     that is paid by the individual during such year.

     ``Sec. 7685. Expiration of program

       ``The Secretary may not make education debt reduction 
     payments to individuals who commence participation in the 
     Education Debt Reduction Program after December 31, 2001.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 76 of title 38, United States Code (as 
     amended by section 2(b)), is further amended by adding at the 
     end the following:

           ``SUBCHAPTER VII--EDUCATION DEBT REDUCTION PROGRAM

``7681. Authority for program.
``7682. Eligibility.
``7683. Preference.
``7684. Education debt reduction.
``7685. Expiration of program.''.

     SEC. 4. REPEAL OF PROHIBITION ON PAYMENT OF TUITION LOANS.

       Section 523(b) of the Veterans Health Care Act of 1992 
     (Public Law 102-585; 106 Stat. 4959; 38 U.S.C. 7601 note) is 
     repealed.

     SEC. 5. OUTREACH.

       The Secretary of Veterans Affairs shall take appropriate 
     actions to notify employees of the Department of Veterans 
     Affairs of the benefits available under the Department of 
     Veterans Affairs Employee Incentive Scholarship Program under 
     subchapter VI of chapter 76 of title 38, United States Code 
     (as added by section 2), and under the Department of Veterans 
     Affairs Primary Care Workers Education Debt Reduction Program 
     under subchapter VII of that chapter (as added by section 3).

     SEC. 6. CONFORMING AMENDMENTS.

       Chapter 76 of title 38, United States Code (as amended by 
     this Act), is further amended as follows:
       (1) In section 7601(a)--
       (A) by striking out ``and'' at the end of paragraph (2);
       (B) by striking out the period at the end of paragraph (3) 
     and inserting in lieu thereof a semicolon; and
       (C) by adding at the end the following:
       ``(4) the employee incentive scholarship program provided 
     for in subchapter VI of this chapter; and''; and
       ``(5) the education debt reduction program provided for in 
     subchapter VII of this chapter.''.
       (2) In section 7602--
       (A) in subsection (a)(1)--
       (i) by striking out ``subchapter I or II'' and inserting in 
     lieu thereof ``subchapter II, III, or VI'';
       (ii) by striking out ``or for which'' and inserting in lieu 
     thereof ``, for which''; and
       (iii) by inserting before the period at the end the 
     following: ``, or for which a scholarship may be awarded 
     under subchapter VI of this chapter, as the case may be''; 
     and
       (B) in subsection (b), by striking out ``subchapter I or 
     II'' and inserting in lieu thereof ``subchapter II, III, or 
     VI''.
       (3) In section 7603--
       (A) in subsection (a)--
       (i) by striking out ``To apply to participate in the 
     Educational Assistance Program,'' and inserting in lieu 
     thereof ``(1) To apply to participate in the Educational 
     Assistance Program under subsection II, III, V, or VI of this 
     chapter,''; and
       (ii) by adding at the end the following:
       ``(2) To apply to participate in the Educational Assistance 
     Program under subchapter VII of this chapter, an individual 
     shall submit to the Secretary an application for such 
     participation.''; and
       (B) in subsection (b)(1), by inserting ``(if required)'' 
     before the period at the end.
       (4) In section 7604, by striking out ``subchapter II, III, 
     or V'' each place it appears in paragraphs (1)(A), (2)(D), 
     and (5) and inserting in lieu thereof ``subchapter II, III, 
     V, or VI''.
       (5) In section 7632--
       (A) in paragraph (1)--
       (i) by striking out ``and the Tuition Reimbursement 
     Program'' and inserting in lieu thereof ``, the Tuition 
     Reimbursement Program, the Employee Incentive Scholarship 
     Program, and the Education Debt Reduction Program''; and
       (ii) by inserting ``(if any)'' after ``number of 
     students'';
       (B) in paragraph (2), by inserting ``(if any)'' after 
     ``education institutions''; and
       (C) in paragraph (4)--
       (i) by striking ``and per participant'' and inserting in 
     lieu thereof ``, per participant''; and
       (ii) by inserting ``, per participant in the Employee 
     Incentive Scholarship Program, and per participant in the 
     Education Debt Reduction Program'' before the period at the 
     end.
       (6) In section 7636, by striking ``or a stipend'' and 
     inserting ``a stipend, or education debt reduction''.

 Ms. MIKULSKI. Mr. President, today I am cosponsoring with 
Senator Rockefeller, the DVA Primary Care Incentive Act of 1998.
  Mr. President, I believe that this bill will ultimately benefit our 
veterans. It will help the Department of Veterans Affairs in its effort 
to provide the highest quality of care that our veterans deserve.
  Mr. President, this bill will create a new Education Debt Reduction 
program, and an Employee Incentive Scholarship Program. The Debt 
Reduction Program will aid the VA in its efforts to increase its number 
of primary care professionals. Preference will be given to those 
choosing to serve at rural or under-served sites, and to those 
professionals in hard to fill specialties. The bill provides the 
Secretary of the VA with the discretion to determine priority needs 
with respect to profession, and locations with the greatest need. Debt 
Reduction program recipients will have to serve a term with the VA 
equivalent to the length of the repayments. A key component of the Debt 
Reduction Program is that each years repayments won't begin until a 
person has completed a corresponding year of service to the VA. This 
requirement is critical to ensuring that our veterans get the service 
they deserve, and that taxpayers get a return on their tax dollars 
invested.
  Mr. President, I introduced a debt reduction bill in 1992 because I 
recognized the need to provide the VA with adequate resources to 
recruit the professionals it needs. And I realized that some who may 
want to get the training to help our veterans may not have all of the 
necessary means to do so. I applaud Senator Rockefeller for including 
an updated debt reduction component to this bill.
  The second component of the bill is the Employee Incentive 
Scholarship Program. This is designed to help meet the VA's need for 
more primary care professionals and to help retain and retrain some of 
the VA's current employees. Like the Debt Reduction program, priority 
would be given to those willing to serve in under-served areas and in 
hard to fill specialties. Recipients would also have to serve at a VA 
clinical site for a term equivalent to the scholarship term. The 
difference is that the Scholarship program would be open only to 
current VA employees with a minimum of two years of service. We want to 
ensure that those benefiting from the Scholarship program have 
demonstrated a commitment to the VA. We also want to provide the 
opportunity structure for those employees who want to expand their 
skills and move into new fields.
  In 1996, Veterans Health Administration Under Secretary for Health, 
Dr. Kenneth Kizer, published a work called ``Prescription for Change''. 
In it, he noted the VA's goal to increase the

[[Page S5445]]

number of VA non-physician primary care providers by 200 percent by 
1998. While the VA has made progress, it has not met its goal. This 
bill seeks to provide another tool in the VA's tool belt that will 
allow it to meet its goal.
  Mr. President, I have been an advocate for our nation's veterans for 
years. I firmly believe that promises made to our nations veterans must 
be promises kept. Our veterans risked their lives for our freedom and 
the protection of democracy. I believe that we as a nation are 
committed to providing the services that our veterans need.
  As the VA continues its move to more outpatient primary care, we must 
make sure that the VA can attract and retain the type of professionals 
who can give our veterans the medical care and treatment they deserve.
  I urge my colleagues' support.
                                 ______
                                 
      By Mr. LUGAR:
  S. 2116. A bill to clarify and enhance the authorities of the Chief 
Information Officer of the Department of Agriculture; to the Committee 
on Agriculture, Nutrition, and Forestry.


the usda information technology reform and year-2000 compliance act of 
                                  1998

 Mr. LUGAR. Mr. President, today I introduce the USDA 
Information Technology Reform and Year-2000 Compliance Act of 1998. 
This legislation aims to centralize all year 2000 computer conversion 
and other information technology acquisition and management activities 
within the Officer of the Chief Information Office of the Department of 
Agriculture. Centralization is the most efficient way to manage the 
complex and important task of ensuring that all critical computer 
functions at the department are operational on January 1, 2000. It is 
also a wiser and more cost effective way to construct an information 
technology infrastructure to enable USDA's hundreds of computer systems 
to interoperate, which unfortunately they cannot now do.
  The Department of Agriculture is charged with enormous 
responsibilities and its year 2000 readiness is crucial. It has a 
diverse portfolio of over 200 federal programs throughout the nation 
and the world. The department delivers about $80 billion in programs. 
It is the fourth largest federal agency, with 31 agencies and offices. 
The department is responsible for the safety of our food supply, 
nutrition programs that serve the poor, young and old, and the 
protection of our natural resources. Since forty percent of the non-tax 
debt owed to the federal government is owed to USDA, the department has 
a responsibility to ensure the financial soundness of taxpayers' 
investments.
  The dentralized approach to the year 2000 issue at USDA has led to a 
lack of focus on departmental priorities. In fact, none exist. No 
planning to assure the continuation of the overall mission of the 
department has occurred. Each agency has been allowed to determine what 
services, programs and activities it deems important enough to be 
operational at the end of the millennium. This decentralized approach 
has also led to a lack of guidance, oversight and the development of 
contingency plans. At a hearing before the Committee on Agriculture, 
Nutrition, and Forestry on May 14th, the General Accounting Office 
reported that eighty percent of the work remains to be done in the ten 
component agencies reviewed. Responsibility for keeping the mission-
critical information technology functioning should clearly rest with 
the Chief Information Officer.
  In fiscal year 1998 alone, USDA plans to spend approximately $1.2 
billion on information technology and related information resources 
management activities. The General Accounting Office has chronicled 
USDA's long history of problems in managing its substantial information 
technology investments. The GAO reports that such ineffective planning 
and management have resulted in USDA's wasting millions of dollars on 
computer systems.
  Last year, I introduced S. 805, a bill to reform the information 
technology systems of the Department of Agriculture. It gave the Chief 
Information Officer control over the planning, development and 
acquisition of information technology at the department. Introduction 
of that bill prompted some coordination of information technology among 
the department's agencies and offices. However, component agencies are 
still allowed to independently acquire and manage information 
technology investments solely on the basis of their own parochial 
interests or needs. This revised legislation is now needed to 
strengthen that coordination and ensure that centralized information 
technology management continues in the future.
  This legislation further requires that the Chief Information Officer 
manage the design and implementation of an information technology 
architecture based on strategic business plans that maximizes the 
effectiveness and efficiency of USDA's program activities. Included in 
the bill is authority for the Chief Information Officer to approve 
expenditures for information resources and for year 2000 compliance 
purposes, except for minor acquisitions. To accomplish these purposes, 
the bill requires that each agency transfer not less than five percent 
of its information technology budget to the Chief Information Officer's 
control.
  The bill makes the Chief Information Officer responsible for ensuring 
that the information technology architecture facilitates a flexible 
common computing environment for the field service centers based on 
integrated program delivery and provides maximum data sharing with USDA 
customers and other federal and state agencies, which is expected to 
result in significant reduction in operating costs.
  Mr. President, this is a bill whose time has come. Unfortunately, 
USDA's problems in managing information technology are not unusual 
among government agencies, according to the General Accounting Office. 
I commend the attention of my colleagues to this bill designed to 
address a portion of the information resource management problems of 
the federal government and ask for their support of it.
                                 ______
                                 
      By Mr. JOHNSON (for himself and Mr. Daschle):
  S. 2117. A bill to authorize the construction of the Perkins County 
Rural Water System and authorize financial assistance to the Perkins 
County Rural Water System, Inc., a nonprofit corporation, in the 
planning and construction of the water supply system, and for other 
purposes; to the Committee on Energy and Natural Resources.
                                 ______
                                 


             PERKINS COUNTY RURAL WATER SYSTEM ACT OF 1998

 Mr. JOHNSON. Mr. President, today I am proud to introduce 
legislation to authorize a critically important rural water system in 
South Dakota, the ``Perkins County Rural Water System Act of 1998.'' I 
am pleased to have my good friend and colleague from South Dakota, 
Senator Daschle, as an original cosponsor of this important 
legislation, which I had introduced during the 104th Congress as a 
Member of the House of Representatives. Congressman Thune of South 
Dakota is the sponsor of similar legislation in the House during this 
Congress. This legislation is also strongly supported by the State of 
South Dakota and local project sponsors, who have demonstrated that 
support by agreeing to substantial financial contributions from the 
local level.
  Like many parts of South Dakota, Perkins County has insufficient 
water supplies of reasonable quality available, and the water supplies 
that are available do not meet the minimum health and safety standards, 
thereby posing a threat to public health and safety.
  In addition to improving the health of residents in the region, I 
strongly believe that this rural drinking water delivery project will 
help to stabilize the rural economy as well. Water is a basic commodity 
and is essential if we are to foster rural development in many parts of 
rural South Dakota, including the Perkins County area.
  The ``Perkins County Rural Water System Act of 1998'' authorizes the 
Bureau of Reclamation to construct a Perkins County Rural Water System 
providing service to approximately 2,500 people, including the 
communities of Lemmon and Bison, as well as rural residents. The 
Perkins County Rural Water System is located in northwestern South 
Dakota along the South Dakota/North Dakota border and it will be an 
extension of an existing rural water system in North Dakota, the 
Southwest Pipeline Project. The State of South Dakota has worked 
closely with the State of North Dakota over the years on the Perkins 
County connection to the Southwest Pipeline Project. A feasibility 
study completed

[[Page S5446]]

in 1994 looked at several alternatives for a dependable water supply, 
and the connection to the Southwest Pipeline Project is clearly the 
most feasible for the Perkins County area.
  Mr. President, South Dakota is plagued by water of exceedingly poor 
quality, and the Perkins County rural water project is an effort to 
help provide clean water--a commodity most of us take for granted--to 
the people of Perkins County, South Dakota. I am a strong believer in 
the federal governments role in rural water delivery, and I hope to 
continue to advance that agenda both in South Dakota and around the 
country. I urge my colleagues to support this important rural water 
legislation, and I look forward to working with my colleagues on the 
Senate Energy and Natural Resources Committee to move forward on 
enactment as quickly as possible.
  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. 2117

       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 ``Perkins County Rural Water 
     System Act of 1997''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) there are insufficient water supplies of reasonable 
     quality available to the members of the Perkins County Rural 
     Water System located in Perkins County, South Dakota, and the 
     water supplies that are available do not meet minimum health 
     and safety standards, thereby posing a threat to public 
     health and safety;
       (2) in 1977, the North Dakota State Legislature authorized 
     and directed the State Water Commission to conduct the 
     Southwest Area Water Supply Study, which included water 
     service to a portion of Perkins County, South Dakota;
       (3) amendments made by the Garrison Diversion Unit 
     Reformulation Act of 1986 (Public Law 101-294) authorized the 
     Southwest Pipeline project as an eligible project for Federal 
     cost share participation;
       (4) the Perkins County Rural Water System has continued to 
     be recognized by the State of North Dakota, the Southwest 
     Water Authority, the North Dakota Water Commission, the 
     Department of the Interior, and Congress as a component of 
     the Southwest Pipeline Project; and
       (5) the best available, reliable, and safe rural and 
     municipal water supply to serve the needs of the Perkins 
     County Rural Water System, Inc., members is the waters of the 
     Missouri River as delivered by the Southwest Pipeline Project 
     in North Dakota.
       (b) Purposes.--The purposes of this Act are--
       (1) to ensure a safe and adequate municipal, rural, and 
     industrial water supply for the members of the Perkins County 
     Rural Water Supply System, Inc., in Perkins County, South 
     Dakota;
       (2) to assist the members of the Perkins County Rural Water 
     Supply System, Inc., in developing safe and adequate 
     municipal, rural, and industrial water supplies; and
       (3) to promote the implementation of water conservation 
     programs by the Perkins County Rural Water System, Inc.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Feasibility study.--The term ``feasibility study'' 
     means the study entitled ``Feasibility Study for Rural Water 
     System for Perkins County Rural Water System, Inc.'', as 
     amended in March 1995.
       (2) Project construction budget.--The term ``project 
     construction budget'' means the description of the total 
     amount of funds that are needed for the construction of the 
     water supply system, as described in the feasibility study.
       (3) Pumping and incidental operational requirements.--The 
     term ``pumping and incidental operational requirements'' 
     means all power requirements that are incidental to the 
     operation of intake facilities, pumping stations, water 
     treatment facilities, cooling facilities, reservoirs, and 
     pipelines to the point of delivery of water by the Perkins 
     County Rural Water System to each entity that distributes 
     water at retail to individual users.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Commissioner of the 
     Bureau of Reclamation.
       (5) Water supply system.--The term ``water supply system'' 
     means the Perkins County Rural Water System, Inc., a 
     nonprofit corporation, established and operated substantially 
     in accordance with the feasibility study.

     SEC. 4. FEDERAL ASSISTANCE FOR WATER SUPPLY SYSTEM.

       (a) In General.--The Secretary shall make grants to the 
     water supply system for the Federal share of the costs of--
       (1) the planning and construction of the water supply 
     system; and
       (2) repairs to existing public water distribution systems 
     to ensure conservation of the resources and to make the 
     systems functional under the new water supply system.
       (b) Service Area.--The water supply system shall provide 
     for safe and adequate municipal, rural, and industrial water 
     supplies, mitigation of wetlands areas, repairs to existing 
     public water distribution systems, and water conservation in 
     Perkins County, South Dakota.
       (c) Amount of Grants.--Grants made available under 
     subsection (a) to the water supply system shall not exceed 
     the Federal share under section 10.
       (d) Limitation on Availability of Construction Funds.--The 
     Secretary shall not obligate funds for the construction of 
     the water supply system until--
       (1) the requirements of the National Environmental Policy 
     Act of 1969 (42 U.S.C. 4321 et seq.) are met with respect to 
     the water supply system;
       (2) a final engineering report has been prepared and 
     submitted to Congress for a period of not less than 90 days 
     before the commencement of construction of the system; and
       (3) the water supply system has developed and implemented a 
     water conservation program.

     SEC. 5. WATER CONSERVATION PROGRAM.

       (a) Purpose.--The water conservation program under section 
     4(d)(3) shall be designed to ensure that users of water from 
     the water supply system will use the best practicable 
     technology and management techniques to conserve water use.
       (b) Description.--The water conservation program shall 
     include--
       (1) low consumption performance standards for all newly 
     installed plumbing fixtures;
       (2) leak detection and repair programs;
       (3) rate structures that do not include declining block 
     rate schedules for municipal households or special water 
     users (as defined in the feasibility study);
       (4) public education programs;
       (5) coordinated operation and maintenance (including 
     necessary repairs to ensure minimal water losses) by and 
     between the water supply system and any member of the system 
     that is a preexisting water supply facility within the 
     service area of the system; and
       (6) coordinated operation between the Southwest Pipeline 
     Project of North Dakota and the Perkins County Rural Water 
     System, Inc., of South Dakota.
       (c) Review and Revision.--The program described in 
     subsection (b) shall contain provisions for periodic review 
     and revision, in cooperation with the Secretary.

     SEC. 6. MITIGATION OF FISH AND WILDLIFE LOSSES.

       Mitigation of fish and wildlife losses incurred as a result 
     of the construction and operation of the water supply system 
     shall be on an acre-for-acre basis, based on ecological 
     equivalency, concurrent with project construction, as 
     provided in the feasibility study.

     SEC. 7. USE OF PICK-SLOAN POWER.

       (a) In General.--From power designated for future 
     irrigation and drainage pumping for the Pick-Sloan Missouri 
     River Basin Program, the Western Area Power Administration 
     shall make available the capacity and energy required to meet 
     the pumping and incidental operational requirements of the 
     water supply system during the period beginning May 1 and 
     ending October 31 of each year.
       (b) Conditions.--The capacity and energy described in 
     subsection (a) shall be made available on the following 
     conditions:
       (1) The water supply system shall be operated on a not-for-
     profit basis.
       (2) The water supply system shall contract to purchase its 
     entire electric service requirements, including the capacity 
     and energy made available under subsection (a), from a 
     qualified preference power supplier that itself purchases 
     power from the Western Area Power Administration.
       (3) The rate schedule applicable to the capacity and energy 
     made available under subsection (a) shall be the firm power 
     rate schedule of the Pick-Sloan Eastern Division of the 
     Western Area Power Administration in effect when the power is 
     delivered by the Administration.
       (4) It shall be agreed by contract among--
       (A) the Western Area Power Administration;
       (B) the power supplier with which the water supply system 
     contracts under paragraph (2);
       (C) the power supplier of the entity described in 
     subparagraph (B); and
       (D) the Perkins County Rural Water System, Inc.;

     that in the case of the capacity and energy made available 
     under subsection (a), the benefit of the rate schedule 
     described in paragraph (3) shall be passed through to the 
     water supply system, except that the power supplier of the 
     water supply system shall not be precluded from including, in 
     the charges of the supplier to the water system for the 
     electric service, the other usual and customary charges of 
     the supplier.

     SEC. 8. NO LIMITATION ON WATER PROJECTS IN STATES.

       This Act does not limit the authorization for water 
     projects in South Dakota and North Dakota under law in effect 
     on or after the date of enactment of this Act.

     SEC. 9. WATER RIGHTS.

       Nothing in this Act--
       (1) invalidates or preempts State water law or an 
     interstate compact governing water;
       (2) alters the rights of any State to any appropriated 
     share of the waters of any body of

[[Page S5447]]

     surface or ground water, whether determined by past or future 
     interstate compacts or by past or future legislative or final 
     judicial allocations;
       (3) preempts or modifies any Federal or State law, or 
     interstate compact, dealing with water quality or disposal; 
     or
       (4) confers on any non-Federal entity the ability to 
     exercise any Federal right to the waters of any stream or to 
     any ground water resource.

     SEC. 10. FEDERAL SHARE.

       The Federal share under section 4 shall be 75 percent of--
       (1) the amount allocated in the total project construction 
     budget for the planning and construction of the water supply 
     system under section 4; and
       (2) such sums as are necessary to defray increases in 
     development costs reflected in appropriate engineering cost 
     indices after March 1, 1995.

     SEC. 11. NON-FEDERAL SHARE.

       The non-Federal share under section 4 shall be 25 percent 
     of--
       (1) the amount allocated in the total project construction 
     budget for the planning and construction of the water supply 
     system under section 4; and
       (2) such sums as are necessary to defray increases in 
     development costs reflected in appropriate engineering cost 
     indices after March 1, 1995.

     SEC. 12. CONSTRUCTION OVERSIGHT.

       (a) Authorization.--The Secretary may provide construction 
     oversight to the water supply system for areas of the water 
     supply system.
       (b) Project Oversight Administration.--The amount of funds 
     used by the Secretary for planning and construction of the 
     water supply system may not exceed an amount equal to 3 
     percent of the amount provided in the total project 
     construction budget for the portion of the project to be 
     constructed in Perkins County, South Dakota.

     SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated--
       (1) $15,000,000 for the planning and construction of the 
     water system under section 4; and
       (2) such sums as are necessary to defray increases in 
     development costs reflected in appropriate engineering cost 
     indices after March 1, 1995.
                                 ______
                                 
      By Mr. CHAFEE (for himself, Mr. Breaux, Mr. Murkowski, Mr. 
        Cochran, Mr. Inouye, Mr. Daschle, Mr. Rockefeller, Mr. Mack, 
        Mr. Lugar, Mr. Bumpers, Mr. Frist, and Mr. Santorum):
  S. 2118. A bill to amend the Internal Revenue Code of 1986 to reduce 
the tax on vaccines to 25 per dose; to the Committee on Finance.


        legislation lowering the federal excise tax on vaccines

 Mr. CHAFEE. Mr. President, today I am introducing legislation 
reducing the excise tax on vaccines from seventy-five cents to twenty-
five cents per dose. I am introducing this bill along with my 
colleagues on the Finance Committee, Senators Breaux, Mack and 
Rockefeller as well as Senators Daschle, Murkowski, Cochran, Inouye, 
Lugar, Bumpers, Frist, and Santorum.
  Vaccines are a modern miracle--preventing disease and illness often 
for a lifetime with just a few doses. Vaccines have virtually 
eliminated the scourge of smallpox in the world. Polio as a wild virus 
has been eliminated in the western hemisphere. Measles, mumps, rubella, 
pertussis, diphtheria, tetanus and hepatitis vaccines have saved 
thousands of lives. Technology in vaccines is on the brink of 
preventing other diseases ranging from Lyme disease to widespread 
rotavirus in the third world.
  Unfortunately, there is a small minority of children whose systems 
cannot handle vaccines and become injured. Recognizing this problem and 
acknowledging that childhood vaccination is required, Congress in 1986 
set up a Vaccine Injury Compensation Trust Fund into which federal 
excise taxes are paid. This modified no-fault system allows parents of 
vaccine-injured children to receive compensation for their children if 
the vaccine is covered by the fund. Childhood vaccines recommended by 
the federal government for routine use in children are covered (1) once 
approved by the Advisory Committee on Immunization Practices, (2) added 
to the Vaccine Injury Compensation Program (VICP), and (3) included on 
the list of vaccines on which the tax is imposed by Congress.
  When the trust fund was established there was no experience with what 
claims would commit to and what the size of the tax should be. 
Estimates were made and different tax levels were established for each 
vaccine.
  By 1993, it was apparent that the tax levels were far too high and a 
surplus was building up in the fund. Today that surplus totals 1.2 
billion dollars. The Ways and Means and Finance Committees directed the 
Administration to study the system and develop a proposal that solves 
the overfunding problem.

  A consensus proposal was drafted and signed on to by all sectors of 
the public health community--physicians, manufacturers, parent's groups 
and health departments. That plan called for a new flat tax of 51 cents 
per antigen (or disease). But even this new rate was far more than was 
necessary to fund the system. For example, the guardian of the fund, 
the Advisory Commission on Childhood Vaccines, recommended 25 cents per 
antigen even when the surplus was half its level today.
  Last year, as part of the balanced budget bill, Congress established 
a single rate tax structure but did so at a level of seventy-five cents 
per dose. The seventy-five cents per dose amount was chosen to satisfy 
the revenue neutrality goals of the overall bill. Congress did not 
solve the overfunding problem and the result was that while some 
vaccine taxes were reduced dramatically, others were increased. Three 
new vaccines were added to the program at the seventy-five cents per 
dose rate.
  At the beginning of this year, the Vaccine Injury Compensation Trust 
Fund had a balance of 1.2 billion dollars. If you assumed that future 
outlays from the fund would be twice as large as the fund's average 
over the past eight years, it would take more than 20 years to exhaust 
the assets in the trust fund, even if no excise tax revenues were 
collected from this date forward. Stated another way, the interest 
earned on the trust fund assets is more than enough to pay annual 
claims and administrative cost. As with many other trust funds within 
the federal budget, these taxes are being used for other federal 
spending.
  This proposal will also provide significant benefits to the states. 
When states purchase vaccines they pay the excise tax. Our bill would 
save the States $52 million annually. For my home state of Rhode 
Island, that would amount to 353,000 dollars annually. By lowering 
these taxes we can lower health care costs to vaccine recipients and 
providers while saving states and the federal government the money they 
now pay in excise taxes when they buy vaccines.
  This proposal is supported by physicians, state health departments, 
manufacturers and parental groups. Most significantly, the Advisory 
Commission on Childhood Vaccines (ACCV) which Congress created to make 
recommendations on changes to the Vaccine Injury Compensation Program, 
strongly supports this proposal.
  I encourage my colleagues to join me as cosponsors of this important 
health initiative.
 Mr. BREAUX. Mr. President, today I introduce with my colleague 
from Rhode Island, Senator Chafee, a very important bill for America's 
children. Our bill, the Vaccinate America's Children Now Act, will cut 
the excise tax on all vaccines to twenty-five cents per dose. Lowering 
the price of vaccines against such deadly and crippling diseases as 
polio and meningitis will not only result in lower health care costs, 
but also greater immunization rates. As a result, fewer American 
children will ever have to know the pain and devastation of childhood 
disease.
  Federal excise taxes on vaccines were first enacted in the late 1980s 
to fund a vaccine injury compensation fund to pay for those rare 
injuries associated with vaccination. Since enactment, this 
compensation fund has accumulated a surplus of $1.2 billion and the 
surplus continues to grow. However, claims against the fund have been 
falling as a result of safer vaccines. The interest alone on this fund 
is now enough to pay the anticipated claims and costs each year. 
Lowering the excise tax rate on vaccines will not endanger the solvency 
of the vaccine injury compensation trust fund in any way. In fact, the 
guardian of the trust fund, the Advisory Commission on Childhood 
Vaccines has unanimously endorsed our proposal.
  Lowering the vaccine tax rates will, however, reduce health care 
costs and make immunization more affordable. Our bill will save states 
money because

[[Page S5448]]

states pay these excise taxes when vaccines are purchased for state 
immunization programs. For example, our bill will save my own State of 
Louisiana approximately $1 million. Nationwide, reducing the excise tax 
will save the states almost $53 million. These cost savings are one 
reason why the Association of States and Territorial Health Officers 
which represents all of the state health departments also supports our 
bill.
  Vaccines are a modern miracle--preventing disease and illness often 
for a lifetime with just a few doses. Vaccines have virtually 
eliminated the scourge of smallpox in the world. Polio as a wild virus 
has been eliminated in the western hemisphere. Measles, mumps, rubella, 
pertussis, diphtheria, tetanus and hepatitis vaccines have saved 
thousands of lives. We must do every thing that we can to ensure that 
children continue to be immunized. Our bill will make these vaccines 
more affordable and more available to all of America's 
children.
                                 ______
                                 
      By Mr. STEVENS (for himself and Mr. Campbell):
  S. 2119. A bill to amend the Amateur Sports Act to strengthen 
provisions protecting the right of athletes to compete, recognize the 
Paralympics and growth of disabled sports, improve the U.S. Olympic 
Committee's ability to resolve certain disputes, and for other 
purposes; to the Committee on Commerce, Science, and Transportation.


           olympic and amateur sports act amendments of 1998

  Mr. STEVENS. Mr. President, I am pleased to introduce the Olympic and 
Amateur Sports Act Amendments of 1998, a bill to update the federal 
charter of the U.S. Olympic Committee and the framework for Olympic and 
amateur sports in the United States. Senator Campbell joins me as an 
original cosponsor.
  This framework is commonly known as the ``Amateur Sports Act,'' 
because most of its provisions were added by the Amateur Sports Act of 
1978 (P.L. 95-606). The Act gives the U.S. Olympic Committee certain 
trademark protections to raise money--and does not provide recurring 
appropriations--so therefore does not come up for routine 
reauthorization.
  The Amateur Sports Act has not been amended since the comprehensive 
revision of 1978--a revision which provided the foundation for the 
modern Olympic movement in the United States.
  Key components of the 1978 Act included--
  (1) measures to expand the authority of the U.S. Olympic Committee to 
allow it to better serve as the coordinating body for amateur sports;
  (2) criteria for the selection of national governing bodies, and 
mechanisms to allow NGBs to be replaced if they are doing a poor job;
  (3) and perhaps most importantly--comprehensive measures to protect 
the right of athletes to compete.
  The 1978 Act was based on recommendations of President Ford's 
Commission on Olympic Sports, which had worked from 1975 until 1977 to 
determine how to correct factional disputes between sports 
organizations which were depriving many athletes of the opportunity to 
compete.
  I served on the Commission, along with Senators Culver and Stone. 
When the Commission's report was delivered to Congress, Chairman Warren 
Magnuson asked me to head up the Commerce Committee's review. In 
addition to numerous working sessions, we spent two full days of 
Commerce Committee hearings on October 18 and October 19, 1977 
discussing the report and the bill implementing it.
  Our bill was enacted into law on November 8, 1978. It was a 
tremendous achievement, which had the consensus support of all entities 
involved--a rarity even then. It is a resilient statute which, to the 
credit of all involved, served its purposes for 15 years before showing 
signs of needing a tune-up.
  Based on the review we've just completed, I can say that the Act is 
still fundamentally sound and that it will serve the United States 
admirably into the 21st century. However, the significant changes which 
have occurred in the world of Olympic and amateur sports since 1978 
warrant some fine-tuning of the Act.
  Some of the developments of the past 20 years include:
  (1) that the schedule for the Olympics and Winter Olympics has been 
alternated so that games are held every two years, instead of every 
four--significantly increasing the workload of the U.S. Olympic 
Committee;
  (2) that sports have begun to allow professional athletes to compete 
in some Olympic events;
  (3) that even sports still considered ``amateur'' have athletes with 
greater financial opportunities and professional responsibilities than 
we ever considered in 1978; and
  (4) that the Paralympics--the Olympics for disabled amateur 
athletes--have grown significantly in size and prestige.
  These and other changes led me to call for a comprehensive review of 
the Amateur Sports Act in 1994. The Commerce Committee has held three 
hearings since then.
  At the first and second--on August 11, 1994 and October 18, 1995--
witnesses identified where the Amateur Sports Act was showing signs of 
strain. We postponed our work until after the 1996 Summer Olympics in 
Atlanta, but on April 21, 1997, held a third hearing at the Olympic 
Training Center in Colorado Springs to discuss solutions to the 
problems which had been identified.
  By January, 1998, we'd refined the proposals into possible amendments 
to the Amateur Sports Act, which we discussed at length at an informal 
working session on January 26, 1998 in the Commerce Committee hearing 
room.
  The bill that Senator Campbell and I introduce today reflects the 
comments received in January, and excludes proposals for which 
consensus appeared unachievable.
  Some measures in the bill may need further refinement, and if 
necessary, I will ask for unanimous consent to issue a star print on 
June 4, 1998. As with the 1978 Act, I believe we will have broad 
consensus on the bill, and I expect to present the bill to the Commerce 
Committee for its consideration during June.
  I will include a longer summary of the bill for the Record, but will 
briefly explain its primary components:
  (1) the bill would change the title of the underlying law to the 
``Olympic and Amateur Sports Act'' to reflect that more than strictly 
amateurs are involved now, but without lessening the amateur and grass 
roots focus reflected in the title of the 1978 Act;
  (2) the bill would add a number of measures to strengthen the 
provisions which protect athletes' rights to compete;
  (3) it would add measures to improve the ability of the USOC to 
resolve disputes--particularly close the Olympics, Paralympics, or Pan-
American Games--and reduce the legal costs and administrative burdens 
of the USOC;
  (4) it would add measures to fully incorporate the Paralympics into 
the Amateur Sports Act, and update the existing provisions affecting 
disabled athletes;
  (5) it would improve the notification requirements when an NGB has 
been put on probation or is being challenged;
  (6) it would increase the reporting requirements of the USOC and NGB 
with respect to sports opportunities for women, minorities, and 
disabled individuals; and
  (7) it would require the USOC to report back to Congress in five 
years with any additional changes that may be needed to the act.
  Mr. President, I am the only Senator from President Ford's Commission 
still serving--and of the Commerce Committee members involved with the 
1978 Act, only myself and Senators Hollings, Inouye, and Ford remain on 
the Committee.
  It has therefore been very helpful to have Senator Campbell--an 
Olympian himself in 1964--involved in this process. Senator Campbell 
and I are hopeful the rest of the Senate and Congress will appreciate 
the need for the relatively minor improvements we propose today, and 
will help us enact these changes before the end of this Congress.
  I ask unanimous consent that both my summary and the bill be printed 
in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2119

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

[[Page S5449]]

     SECTION 1. SHORT TITLE.

       This Act may be referred to as the ``Olympic and Amateur 
     Sports Act Amendments of 1998''.

     SEC. 2. OLYMPIC AND AMATEUR SPORTS ACT; AMENDMENT OF ACT.

       (a) The Act entitled ``An Act to incorporate the United 
     States Olympic Association'', approved September 21, 1950 (36 
     U.S.C. 371 et seq.), as amended, shall be cited hereafter as 
     the ``Olympic and Amateur Sports Act''.
       (b) Except as otherwise expressly provided, whenever in 
     this Act an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Olympic and Amateur Sports Act (36 
     U.S.C. 371 et seq.), as renamed by subsection (a).

     SEC. 3. OBJECTS AND PURPOSES.

       (a) Section 104(3) (36 U.S.C. 374(3)) is amended by 
     inserting ``, the Paralympic Games,'' after ``Olympic Games'' 
     in both places it appears.
       (b) Section 104(4) (36 U.S.C. 374(4)) is amended by 
     inserting ``, the Paralympic Games,'' after ``Olympic 
     Games''.
       (c) Section 104(13) (36 U.S.C. 374(13)) is amended to read 
     as follows:
       ``(13) encourage and provide assistance to amateur athletic 
     programs and competition for amateur athletes with 
     disabilities, including, where feasible, the expansion of 
     opportunities for meaningful participation by such amateur 
     athletes in programs of athletic competition for able-bodied 
     amateur athletes; and''.

     SEC. 4. POWERS OF CORPORATION.

       (a) Section 105(a)(2) (36 U.S.C. 375(a)(2)) is amended by 
     inserting before the semicolon, ``and as its national 
     Paralympic committee in relations with the International 
     Paralympic Committee''.
       (b) Section 105(a)(3) (36 U.S.C. 375(a)(3)) is amended by 
     inserting ``, the Paralympic Games,'' after ``Olympic 
     Games''.
       (c) Section 105(a)(4) (36 U.S.C. 375(a)(4)) is amended by 
     inserting ``, the Paralympic Games,'' after ``Olympic 
     Games''.
       (d) Section 105(a)(5) (36 U.S.C. 375(a)(5)) is amended by 
     striking ``, Pan-American world championship competition'' 
     and inserting in lieu thereof ``Paralympic Games, the Pan-
     American Games, world championship competition''.
       (e) Section 105(a)(6) (36 U.S.C. 375(a)(6)) is amended by 
     inserting after ``sued'' a comma and the following, ``except 
     that the Corporation may be sued only in federal court for 
     matters pertaining solely to this Act''.

     SEC. 5. MEMBERSHIP; REPRESENTATION.

       (a) Section 106(b)(2) (36 U.S.C. 376(b)(2)) is amended to 
     read as follows:
       ``(2) amateur athletes who are actively engaged in amateur 
     athletic competition or who have represented the United 
     States in international amateur athletic competition within 
     the proceeding 10 years, including through provisions which--
       ``(A) establish and maintain an Athletes' Advisory Council 
     composed of, and elected by, such amateur athletes to ensure 
     communication between the Corporation and such amateur 
     athletes; and
       ``(B) ensure that the membership and voting power held by 
     such amateur athletes is not less than 20 percent of the 
     membership and voting power held in the board of directors of 
     the Corporation and in the committees and entities of the 
     Corporation;''.
       (b) Section 106(b)(3) (36 U.S.C. 376(b)(3)) is amended by 
     inserting ``, the Paralympic Games,'' after ``Olympic 
     Games''.

     SEC. 6. USE OF OLYMPIC, PARALYMPIC, AND PAN-AMERICAN SYMBOLS.

       (a) Section 110(a) (36 U.S.C. 380(a)) is amended--
       (1) in paragraph (1) by inserting before the semicolon, ``, 
     the symbol of the International Paralympic Committee, 
     consisting of three TaiGeuks, or the symbol of the Pan-
     American Sports Organization, consisting of a torch 
     surrounded by concentric rings'';
       (2) in paragraph (3) by inserting ``, the International 
     Paralympic Committee, the Pan-American Sports Organization,'' 
     after ``International Olympic Committee''; and
       (3) in paragraph (4)--
       (A) by inserting ```Paralympic', `Paralympiad', `Pan-
     American', `America Espirito Sport Fraternite','' before ``or 
     any combination''; and
       (B) by inserting ``, Paralympic, or Pan-American Games'' 
     after ``any Olympic''.
       (b) Section 110(b) (36 U.S.C. 380(b)) is amended--
       (1) by inserting ``, International Paralympic Committee, 
     Pan-American Sports Organization,'' after ``International 
     Olympic Committee''; and
       (2) by inserting ``, Paralympic,'' before ``or Pan-American 
     team''.
       (c) Section 110(c) (36 U.S.C. 380(c)) is amended--
       (1) by striking ``symbol'' and inserting ``symbols''; and
       (2) by inserting ``, `Paralympic', `Paralympiad', `Pan-
     American','' before ``or any combination''.

     SEC. 7. AGENT FOR SERVICE OF PROCESS.--

       Section 111 (36 U.S.C. 381) is amended by striking ``file 
     in the office'' and all that follows through the period, and 
     inserting in lieu thereof ``have a designated agent in the 
     State of Colorado to receive service of process for the 
     Corporation. Notice to or service on the agent, or mailed to 
     the business address of the agent, is notice to or service on 
     the corporation.''.

     SEC. 8. REPORTS.

       Section 113 (36 U.S.C. 382a) is amended to read as follows:
       ``Sec. 113. The Corporation shall, on or before the first 
     day of June, 2001 and every fourth year thereafter, transmit 
     simultaneously to the President and to each House of Congress 
     a detailed report of its operations for the preceding four 
     years, including a full and complete statement of its 
     receipts and expenditures and a comprehensive description of 
     the activities and accomplishments of the Corporation during 
     such four year period. The report shall contain data 
     concerning the participation of women, disabled individuals, 
     and racial and ethnic minorities in the amateur athletic 
     activities and administration of the Corporation and national 
     governing bodies, and a description of the steps taken to 
     encourage the participation of women, disabled individuals, 
     and racial minorities in amateur athletic activities. Copies 
     of the report shall be made available by the Corporation to 
     interested persons at a reasonable cost.''.

     SEC. 9. RESOLUTION OF DISPUTES.

       (a) Section 114 (36 U.S.C. 382b) is amended--
       (1) by inserting ``(a)'' before the first sentence;
       (2) by inserting ``the Paralympic Games,'' before ``Pan-
     American Games''; and
       (3) by inserting at the end the following, ``In any lawsuit 
     relating to the resolution of a dispute involving the 
     opportunity of an amateur athlete to participate in the 
     Olympic Games, the Paralympic Games, or the Pan-American 
     Games, a court shall not grant injunctive relief against the 
     Corporation within 30 days before the beginning of such games 
     if the Corporation has stated in writing to such court that 
     its constitution and bylaws cannot provide for the resolution 
     of such dispute prior to the beginning of such games.''.
       (b) Section 114 (36 U.S.C. 382b), as amended by subsection 
     (a), is amended further by adding at the end the following 
     new subsection:
       ``(b) Upon nomination by the Athletes' Advisory Council, 
     the Corporation shall hire and provide administrative 
     expenses for an ombudsman for athletes. The ombudsman for 
     athletes shall provide advice at no cost to amateur athletes 
     with respect to, among other issues, the resolution of any 
     dispute involving the opportunity of an amateur athlete to 
     participate in an amateur athletic competition, including the 
     Olympic Games, the Paralympic Games, the Pan-American Games, 
     world championship competition or other protected 
     competition. The Corporation may terminate the employment of 
     an individual serving as ombudsman for athletes, and may 
     reduce the salary or administrative expenses of such 
     individual, only if such termination or reduction is approved 
     by a majority of the voting members of the Athletes' Advisory 
     Council. The ombudsman for athletes shall receive salary and 
     administrative cost increases in increments similar to other 
     employees and offices of the Corporation. The Athletes' 
     Advisory Council shall nominate a replacement to fill any 
     vacancy that occurs in the position of ombudsman for 
     athletes.''.

     SEC. 10. COMPLETE TEAMS.

       Title I (36 U.S.C. 371 et seq.) is amended by inserting 
     after section 114 the following new section:
     ``Sec. 115. In obtaining representation for the United States 
     in each competition and event of the Olympic Games, 
     Paralympic Games, and Pan-American Games, the Corporation, 
     either directly or by delegation to the appropriate national 
     governing body, may select, but is not obligated to select, 
     athletes who have not met the eligibility standard of at 
     least one of the national governing body, the Corporation, 
     the International Olympic Committee, or the appropriate 
     international sports federation, when the number of athletes 
     who have met the eligibility standard of at least one of such 
     entities is insufficient to fill the roster for an event.''.

     SEC. 11. RECOGNITION OF AMATEUR SPORTS ORGANIZATIONS.

       (a) Section 201(a)(36 U.S.C. 391(a)) is amended--
       (1) by inserting ``, the Paralympic Games,'' after 
     ``Olympic Games'';
       (2) by inserting before the period at the end of the second 
     sentence ``, except as provided in subsection (e)'';
       (3) by striking ``hold a hearing'' and inserting in lieu 
     thereof ``hold at least two hearings''; and
       (4) by inserting at the end, ``In addition, the Corporation 
     shall send written notice, which shall include a copy of the 
     application, at least 30 days prior to the date of the 
     hearing to all amateur sports organizations known to the 
     Corporation in that sport.''.
       (b) Section 201(b) (36 U.S.C. 391(b)) is amended--
       (1) in paragraph (3)--
       (A) by striking ``commercial rules of the American 
     Arbitration Association'' and inserting in lieu thereof 
     ``Commercial rules of the American Arbitration Association, 
     as modified by the Corporation with the concurrence of the 
     Athletes' Advisory Council,''; and
       (B) by striking ``or involving the opportunity of any'' and 
     inserting in lieu thereof ``or, upon demand of the 
     Corporation or any aggrieved amateur athlete, coach, trainer, 
     manager, administrator or official, to such arbitration in 
     any controversy involving the opportunity of such'';
       (2) in paragraph (6) by inserting ``that comports with 
     basic concepts of fundamental fairness, due process, and a 
     presumption of innocence'' after opportunity for a hearing'';
       (3) in paragraph (8)--
       (A) by striking ``includes'' and inserting in lieu thereof 
     ``has established criteria for and maintains'';

[[Page S5450]]

       (B) by inserting ``that such criteria and the procedure for 
     selecting such individuals is approved by the Athletes' 
     Advisory Council and the Corporation,'' after ``preceding 10 
     years,''; and
       (C) by striking ``membership and'' in both places it 
     appears; and
       (4) in paragraph (12) by inserting ``or to participation in 
     the Olympic Games, the Paralympic Games, or the Pan-American 
     Games'' after ``amateur status''.
       (c) Section 201 (36 U.S.C. 391), as amended, is amended 
     further by adding at the end the following new subsection:
       ``(e) For any sport which is included on the program of the 
     Paralympic Games, the Corporation is authorized to designate, 
     where feasible and when such designation would serve the best 
     interest of the sport, a national governing body recognized 
     under subsection (a) to govern such sport. Where such 
     designation is not feasible or would not serve the best 
     interest of the sport, the Corporation is authorized to 
     recognize as a national governing body another amateur sports 
     organization to govern such sport, except that, 
     notwithstanding the other requirements of this Act, such 
     national governing body--
       ``(1) shall comply only with those requirements, perform 
     those duties, and have those powers that the Corporation 
     determines are appropriate to meet the objects and purposes 
     of the Act; and
       ``(2) may, with the approval of the Corporation, govern 
     more than one sport included on the program of the Paralympic 
     Games.''.

     SEC. 12. DUTIES OF NATIONAL GOVERNING BODIES.

       (a) Section 202(a)(3) (36 U.S.C. 392(a)(3) is amended--
       (1) by inserting (A)'' immediately after ``(3)'';
       (2) by inserting ``and'' after the semicolon; and
       (3) by inserting at the end the following new subparagraph:
       ``(B) disseminate and distribute to amateur athletes, 
     coaches, trainers, managers, administrators and officials in 
     a timely manner the applicable rules and any changes to such 
     rules of the national governing body, the Corporation, the 
     appropriate international sports federation, the 
     International Olympic Committee, the International Paralympic 
     Committee, and the Pan-American Sports Organization;''.
       (b) Section 202(a)(7) (36 U.S.C. 392(a)(7)) is amended by 
     striking ``handicapped'' in each of the three places it 
     appears and inserting in lieu thereof ``disabled''.

     SEC. 13. AUTHORITY OF NATIONAL GOVERNING BODIES.

       (a) Section 203(6) (36 U.S.C. 393(6)) is amended by 
     inserting ``, the Paralympic Games,'' after ``Olympic 
     Games''.
       (b) Section 203(7) (36 U.S.C. 393(7)) is amended by 
     inserting ``, the Paralympic Games,'' after ``Olympic 
     Games''.

     SEC. 14. REPLACEMENT OF NATIONAL GOVERNING BODY.

       (a) Section 205(a)(3)(C)(i) (36 U.S.C. 395(a)(3)(C)(i)) is 
     amended by inserting ``and notify such national governing 
     body of such probation and of the actions needed to comply 
     with such requirements,'' before ``or''.
       (b) Section 205(b) (36 U.S.C. 395(b)) is amended--
       (1) in paragraph (1) by striking ``Olympic Games or in 
     both'' and inserting in lieu thereof ``Olympic Games or the 
     Paralympic Games, or in both'';
       (2) in paragraph (2)--
       (A) by striking ``registered'' and inserting ``certified''; 
     and
       (B) by inserting ``and with any other organization that has 
     filed an application'' after ``applicable national governing 
     body''; and
       (3) in paragraph (3)--
       (A) by inserting ``open to the public'' after ``formal 
     hearing'' in the first sentence; and
       (B) by inserting after the second sentence, ``In addition, 
     the Corporation shall send written notice, which shall 
     include a copy of the application, at least 30 days prior to 
     the date of the hearing to all amateur sports organizations 
     known to the Corporation in that sport.''.

     SEC. 15. SPECIAL REPORT TO CONGRESS.

       Five years from the date of the enactment of this Act, the 
     United States Olympic Committee shall submit a special report 
     to the Congress on the effectiveness of the provisions of 
     this Act, together with any additional proposed changes to 
     the Olympic and Amateur Sports Act the United States Olympic 
     Committee determines are appropriate.
                                  ____


   Short Summary of Olympic and Amateur Sports Act Amendments of 1998


                              title change

       The bill would amend the title of the federal statute which 
     is the charter of the United States Olympic Committee (USOC) 
     and national framework for amateur sports activities so that 
     it would be called the ``Olympic and Amateur Sports Act'' 
     (section 2(a) of the bill). The title of the bill, itself, is 
     the ``Olympic and Amateur Sports Act Amendments of 1998.''
       The original federal law incorporating the USOC (Public Law 
     81-805) was enacted in 1950 and is presently known only as 
     the ``Act to incorporate the United States Olympic 
     Association.'' In 1964, not long after the USOC name was 
     changed from ``United States Olympic Association'' to 
     ``United States Olympic Committee,'' technical and conforming 
     changes were made to the 1950 Act through Public Law 88-407. 
     In 1978, the 1950 Act was substantially expanded and 
     rewritten into its present form through amendments made by 
     the landmark statute, the ``Amateur Sports Act of 1978.'' 
     Because the amendments made by the 1978 Act so greatly 
     changed and expanded the 1950 Act, the 1950 Act, as amended, 
     is now commonly referred to as the ``Amateur Sports Act,'' 
     though its title was never changed.
       Section 2(a) of the bill would rename this original 1950 
     law, as amended by the 1964 and 1978 changes, as the 
     ``Olympic and Amateur Sports Act.'' The addition of the word 
     ``Olympic'' to the popularly used title ``Amateur Sports 
     Act'' is meant to take into account the participation of 
     professional and quasi-amateur athletes in some of the sports 
     of the Olympic Games and Pan-American Games, but at the same 
     time continue to reflect the unique role the USOC and 
     national governing bodies have in the national framework of 
     truly amateur sports activities. By giving the entire 
     underlying body of law a new title (replacing the simple 
     descriptive title of the original 1950 Act mentioned above), 
     the amendment would leave in place in federal statute the 
     title of the ``Amateur Sports Act of 1978'' for historic 
     reference.


                     protection of athletes rights

       Athletes' Advisory Council/Athlete Membership on USOC 
     Board--Section 5(a) of the bill would amend the Act to 
     require the creation of an Athletes' Advisory Council (AAC), 
     which is currently created as part of the USOC constitution 
     and bylaws and not recognized in the Act. Section 5(a) would 
     also amend the Act to require that at least 20 percent of the 
     membership and voting power of the USOC Board of Directors 
     and other USOC committees and entities be comprised of 
     athletes. This, too, is presently only required under the 
     USOC constitution and bylaws.
       Ombudsman--Section 9(b) of the bill would require the USOC 
     to hire an ombudsman for athletes to provide free advice to 
     athletes about their rights under the Act and under 
     the constitution and bylaws of the USOC and their NGB, and 
     in particular, their rights in any dispute involving an 
     opportunity to compete. The USOC would hire and pay an 
     individual nominated by the AAC to serve as the ombudsman, 
     and could only fire or reduce the pay or administrative 
     expenses of the ombudsman with the consent of the AAC. 
     This restriction is intended to protect the objectivity 
     and autonomy of the ombudsman. The AAC would be expected 
     to consent to the termination of an ombudsman for conduct 
     which would lead to the termination of other USOC 
     employees. The USOC would be required hire another 
     ombudsman nominated by the AAC in the event of a vacancy.
       Arbitration--Section 11(b)(1) of the bill would amend the 
     Act to clarify that NGB's must agree to arbitration using the 
     Commercial rules of the American Arbitration Association in 
     disputes with athletes, but that these rules may be modified 
     by the Corporation, with the consent of the AAC. In addition, 
     section 11(b) would clarify that NGB's must agree to submit 
     to arbitration at the request of an amateur athlete 
     regardless of whether the USOC has demanded such arbitration. 
     It is anticipated that these amendments would precipitate a 
     review of the arbitration rules used for NGB/athlete 
     arbitrations under the Act, and that the USOC, AAC, and NGB 
     Council would reach agreement with respect to: (1) the relief 
     available under arbitration; (2) the point during a dispute 
     at which an athlete may obtain arbitration; and (3) the 
     standard of review to be used by arbitration panels.
       Due Process/Fairness--Section 11(b)(2) of the bill would 
     amend the Act to clarify that the hearing required under the 
     Act before an NGB can declare an athlete ineligible to 
     participate must comport with basic concepts of fairness, due 
     process, and the presumption of innocence.
       Athlete Membership on NGB Boards--Section 11(b)(3) of the 
     bill would amend the Act to allow NGBs individually to 
     establish the criteria and selection procedures for ``active 
     athletes'' in satisfying the existing statutory requirement 
     that 20 percent of NGB governing boards be comprised of 
     amateur athletes. However, the bill would require that both 
     the AAC and USOC approve the criteria and selection process 
     used by an NGB. In addition, the bill would change the Act to 
     require that only 20 percent of the voting power, rather than 
     20 percent of the voting power and membership, be held by 
     amateur athletes. These amendments are intended to provide 
     flexibility so that the different characteristics of NGB 
     boards and athletes in various sports can be taken into 
     account. The amendments would allow the amateur athlete 
     membership of some NGB boards to dip below 20 percent, but it 
     is expected that this would occur only where the 
     characteristics of the sport or of the governing board make 
     it very difficult to meet a 20 percent membership standard. 
     Under no circumstances would the voting power of amateur 
     athletes on the board of an NGB be allowed to be below 20 
     percent. It is anticipated that further clarification may be 
     needed as to whether the 20 percent threshold will provide 
     adequate athlete voting power on existing NGBs which become 
     the NGB for a sport on the program of the Paralympic Games.
       Distribution of Information--Section 12(a) of the bill 
     would make it a specific duty of NGBs to disseminate and 
     distribute in a timely manner to athletes, coaches and others 
     in the sport the rules--and any changes to the rules--of the 
     NGB, the USOC, the appropriate international 
     sports federation,

[[Page S5451]]

     the International Olympic Committee, the International 
     Paralympic Committee (as appropriate), and the Pan-
     American Sports Organization.


                             usoc authority

       Jurisdiction--Section 4(e) of the bill would amend the Act 
     so that the USOC could be sued only in federal court for 
     issues pertaining solely to the Act. This amendment is not 
     intended to affect the existing law with respect to private 
     actions.
       Trademark Protection--Section 6 of the bill would provide 
     the USOC with the same trademark protection for the 
     Paralympic Games, Pan-American Games and symbols and words 
     associated with those games as it presently has for the 
     Olympics. It would also give the USOC the exclusive power to 
     authorize the use of these names and symbols in order to 
     raise funds to carry out the Act.
       Service of Process--Section 7 of the bill would require the 
     USOC have a designated agent in the State of Colorado to 
     receive service of process, rather than an agent in every 
     state. Requiring an agent in only one location is consistent 
     with the service requirements of many other patriotic 
     societies which are catalogued in title 36 of the United 
     States Code. As with these other entities, notice to or 
     service on the agent--or mailed to the business address of 
     the agent--would be considered notice to or service on the 
     USOC.
       Report to Congress--Section 8 of the bill would require the 
     USOC to submit a formal report to Congress only once every 
     four years (instead of annually under the present Act) to 
     conform more closely with the four-year budget cycle of the 
     USOC and to reduce administrative burdens. The report would, 
     however, be required to include data on the participation of 
     women, disabled individuals and racial and ethnic minorities, 
     including a description of the steps that have been taken to 
     encourage increased participation by these groups of people 
     in amateur sports.
       Injunction Immunity--Section 9(a) of the bill would prevent 
     a court from granting injunctive relief against the USOC in a 
     dispute involving the participation of an athlete within 30 
     days of the beginning of the Olympics, the Paralympics, or 
     the Pan-American Games if the USOC has stated in writing to 
     the court that its constitution and bylaws cannot provide for 
     the resolution of the dispute before the beginning of the 
     games. The provision is intended to give the USOC the ability 
     to decide who will represent the United States in the rare 
     NGB/athlete dispute which may arise too close to Olympics, 
     Paralympics, or Pan-American Games to be resolved prior to 
     the beginning of those games. It would not take away any 
     other type of relief that may be available, or injunctive 
     relief for disputes which may be resolved under the 
     constitution and bylaws prior to the beginning of the 
     Olympics, Paralympics, or Pan-American Games.
       Complete Teams--Section 10 of the bill would give the USOC 
     the authority to send an incomplete team for a sport if not 
     enough athletes have met the eligibility standards of at 
     least one of: the USOC, the NGB, the IOC, or the national 
     federation for the sport. The USOC could send a complete 
     team in that circumstance, but would not be required to 
     send a complete team. The bill (in section 11(b)(4)) would 
     specify, however, that NGB's cannot have eligibility 
     criteria for participation in the Olympics, Pan-American 
     Games or Paralympics which are more restrictive than the 
     criteria for the international sports federation for their 
     sport.
       Flexibility for Paralympic NGBs--The bill (see summary of 
     the Paralympic provisions below and section 11(c) of the 
     bill) would give the USOC full flexibility to minimize the 
     potential burdens, financial or otherwise, of integrating the 
     Paralympics into the USOC framework.


                       NATIONAL GOVERNING BODIES

       NGB Selection Hearings--Section 11(a)(3) would require that 
     at least two public hearings be held (instead of one) prior 
     to the recognition of a new NGB.
       Written Notice of NGB Hearings--Sections 11(a)(4) and 
     13(b)(3) would require the USOC to send written notice to 
     known amateur sports organizations in the sport at least 30 
     days prior to an NGB selection hearings (including a hearing 
     on an application to replace an existing NGB) and to include 
     a copy of the application in the notice.
       Participation Critera--Section 11(b)(4) of the bill would 
     prohibit NGBs from having eligibility criteria that is more 
     restrictive than its international sports federation for 
     participation in events at the Olympic Games, Paralympic 
     Games, and Pan-American Games. The amendment in part would 
     help provide balance with an amendment (see above) allowing 
     the USOC not to send a complete team under certain 
     circumstances.
       NGB Notification--Section 14(a) of the bill would 
     specifically require the USOC to notify an NGB of the actions 
     the NGB must take to correct violations of the Act if the 
     USOC has placed an NGB on probation after a complaint has 
     been filed.


                              PARALYMPICS

       Recognition of Paralympic Games--The bill would make 
     amendments in a number of places in the Act to provide for 
     the recognition of the Paralympic Games. Under the 
     amendments, the USOC would have same duties as with the 
     Olympic Games to, among other things, ``either directly or 
     [by delegation to NGB]'': select athletes for U.S. teams, 
     represent the United States in relations with the 
     International Paralympic Committee, organize and finance U.S. 
     teams, as well as to provide equitable and fair dispute 
     resolution procedures for disabled athletes. In addition, the 
     USOC would be required: to allow Paralympic sports 
     organizations to join USOC; and to use and protect the 
     trademarks of Paralympics.
       Disabled Amateur Athletes--Section 3(c) of the bill would 
     eliminate references in the bill to ``handicapped 
     individual'' and insert instead the term ``amateur athlete 
     with disabilities.'' The use of the new words would update 
     terminology and, more importantly, make clear that disabled 
     athletes are ``amateur athletes'' under the Act's existing 
     definition, provided that they meet the eligibility standards 
     of their NGB, as required by the existing definition of 
     ``amateur athlete''.
       Paralympic NGBs--Section 11(c) of the bill would make it 
     the first priority of the USOC to merge sports on the program 
     of the Paralympic Games with existing able-bodied NGBs. Where 
     it is not feasible or in the best interest of a Paralympic 
     sport to put it under an able-bodied NGB, the USOC would be 
     allowed to recognize another amateur sports organization as a 
     new NGB for the Paralympic sport, except that the USOC would 
     be allowed to waive the requirements, duties, and powers of 
     the NGB as necessary to meet the objects and purposes of the 
     Act. In addition, a Paralympic NGB could govern more than one 
     sport on the program of the Paralympic Games with the 
     approval of the USOC. By giving the USOC the authority to 
     waive normal NGB requirements, the bill is intended to allow 
     a smooth transition as Paralympic sports become integrated 
     under the USOC umbrella, and to allow the USOC to prevent any 
     severe financial impacts on existing NGBs. The provisions in 
     the bill are largely consistent with the general direction 
     the USOC has taken already with respect to Paralympics.
       World Games for the Deaf--It has been suggested that both 
     the bill and the Committee report which eventually 
     accompanies the bill include language in support of the World 
     Games for Deaf and of deaf athletes. It is anticipated that 
     this issue will be addressed by consensus before the bill 
     becomes enacted.


                         Restricted Competition

       The bill does not amend section 206 of the Act, which 
     addresses the jurisdiction of amateur sports organizations 
     over competitions restricted to certain classes of athletes 
     (such as high school students, college students, etc.). A 
     number of concerns were raised and discussed during the 
     Commerce Committee hearings about section 206, and it has 
     been suggested that the Committee report which eventually 
     accompanies the bill should discuss these concerns.


                       Special Report to Congress

       Section 15 of the bill would require the USOC to report to 
     Congress after five years on the effectiveness of the new 
     provisions added to the Act by the bill, as well as any 
     additional suggested changes to the Act that the USOC 
     believes are needed. The report would provide an occasion for 
     Congress to review the implementation of the amendments and 
     any modifications proposed by the USOC.
                                 ______
                                 
      By Mr. ROCKEFELLER (for himself and Mr. Frist):
  S. 2120. A bill to improve the ability of Federal agencies to license 
federally--owned inventions; to the Committee on Commerce, Science, and 
Transportation.


           TECHNOLOGY TRANSFER COMMERCIALIZATION ACT OF 1998

 Mr. ROCKFELLER. Mr. President, today with my colleague Senator 
Frist, I introduce the Technology Transfer Act of 1998. This bill would 
make technical changes and clarifications to the legislation which 
governs the transfer of intellectual property from the federal 
government to the private sector.
  The original Technology Transfer Improvements Act (TTIA), which I was 
author of in 1995, allowed for easier and quicker access to 
intellectual property which the government owns and private industry 
wants. It created a win-win situation. The government gets royalties 
from these licenses, private industry gets the intellectual property 
that it needs, and Americans get jobs from the production of inventions 
based on this intellectual property.
  This bill builds on the strong positive response from TTIA. It 
reduces the requirements for obtaining a non-exclusive license in order 
to allow as many companies and individuals as possible access to the 
information. It also addresses private industry's concerns about 
maintaining confidential information within applications.
  However, this does not come at the expense of the government being 
able to keep control of its property. This bill also clarifies the 
ability of the licensing agencies to terminate a license if certain 
criteria are not met. Furthermore, it allows the government to 
consolidate intellectual property which is developed in cooperation 
with a private entity so that the package can be relicensed to a third 
party.

[[Page S5452]]

  Technology transfer is a vital part of our national economy. It is 
what allows our industries to remain at the leading edge in their 
field. This bill clarifies and adjusts current legislation to allow for 
an even better working relationship between the federal government and 
private industry. I encourage my colleagues to support this bill and I 
ask unanimous consent that the text of the bill appear in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2120

       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 ``Technology Transfer 
     Commercialization Act of 1998''.

     SEC. 2. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.

       Section 12(b)(1) of the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3710a(b)(1)) is amended by 
     inserting ``or, subject to section 209 of title 35, United 
     States Code, may grant a license to an invention which is 
     Federally owned, made before the signing of the agreement, 
     and directly related to the scope of the work under the 
     agreement,'' after ``under the agreement,''.

     SEC. 3. LICENSING FEDERALLY--OWNED INVENTIONS.

       (a) Amendment.--Section 209 of title 35, United States 
     Code, is amended to read as follows:

     ``Sec. 209. Licensing federally--owned inventions

       ``(a) Authority.--A Federal agency may grant an exclusive 
     or partially exclusive license on a federally-owned invention 
     only if--
       ``(1) granting the license is a reasonable and necessary 
     incentive to--
       ``(A) call forth the investment capital and expenditures 
     needed to bring the invention to practical application; or
       ``(B) otherwise promote the invention's utilization by the 
     public;
       ``(2) the Federal agency finds that the public will be 
     served by the granting of the license, as indicated by the 
     applicant's intentions, plans, and ability to bring to 
     invention to practical application or otherwise promote the 
     invention's utilization by the public, and that the proposed 
     scope of exclusivity is not greater than reasonably necessary 
     to provide the incentive for bringing the invention to 
     practical utilization, as proposed by the applicant, or 
     otherwise to promote the invention's utilization by the 
     public;
       ``(3) the applicant makes a commitment to achieve practical 
     utilization of the invention within a reasonable time;
       ``(4) granting the license will not tend to substantially 
     lessen competition or create or maintain a violation of the 
     Federal antitrust laws; and
       ``(5) in the case of an invention covered by a foreign 
     patent application or patent, the interests of the Federal 
     Government or United States industry in foreign commerce will 
     be enhanced.
       ``(b) Manufacture in United States.--A Federal agency shall 
     normally grant any license to use or sell any federally-owned 
     invention in the United States only to a licensee who agrees 
     that any products embodying the invention or produced through 
     the use of the invention will be manufactured substantially 
     in the United States.
       ``(c) Small Business.--First preference for the granting of 
     any exclusively or partially exclusive licenses under this 
     section shall be given to small business firms having equal 
     or greater likelihood as other applicants to bring the 
     invention to practical application within a reasonable time.
       ``(d) Terms and Conditions.--Any licenses granted under 
     section 207 shall contain such terms and conditions as the 
     granting agency considers appropriate. Such terms and 
     conditions--
       ``(1) shall include provisions--
       ``(A) retaining a nontransferable, irrevocable, paid-up 
     license for the Federal agency to practice the invention or 
     have the invention practiced throughout the world by or on 
     behalf of the Government of the United States;
       ``(B) requiring periodic reporting on utilization of the 
     invention, and utilization efforts, by the licensee, but only 
     to the extent necessary to enable the Federal agency to 
     determine whether the terms of the license are being complied 
     with; and
       ``(C) empowering the Federal agency to terminate the 
     license in whole or in part if the agency determines that--
       ``(i) the licensee is not executing its commitment to 
     achieve practical utilization of the invention, including 
     commitments contained in any plan submitted in support of its 
     request for a license, and the licensee cannot otherwise 
     demonstrate to the satisfaction of the Federal agency that it 
     has taken, or can be expected to take within a reasonable 
     time, effective steps to achieve practical utilization of 
     the invention;
       ``(ii) the licensee is in breach of an agreement described 
     in subsection (b);
       ``(iii) termination is necessary to meet requirements for 
     public use specified by Federal regulations issued after the 
     date of the license, and such requirements are not reasonably 
     satisfied by the licensee; or
       ``(iv) the licensee has been found by a competent authority 
     to have violated the Federal antitrust laws in connection 
     with its performance under the license agreement.
       ``(e) Public Notice.--No exclusive or partially exclusive 
     license may be granted under the section unless public notice 
     of the intent to grant such license has been provided at 
     least 30 days before the license is granted, and the Federal 
     agency has considered all comments received in response to 
     that public notice.
       ``(f) Development Plan.-- A Federal agency may grant a 
     license on a federally-owned invention only if the person 
     requesting the license has supplied to the agency a basic 
     business plan with development or commercialization 
     milestones. Each Federal Agency, in consultation with the 
     Small Business Administration, shall develop consistent 
     standards for exempting small business firms from the 
     requirements of this subsection or non-exclusive licenses.
       ``(g) Nondisclosure of Certain Information.--An application 
     shall include, as an independent subdocument a detailed 
     description of the applicant's plan for development or 
     marketing (or both) of the invention. The subdocument, which 
     is exempt from disclosure under section 552 of title 5, 
     United States Code, shall include only a statement--
       ``(1) of the time, nature, and amount of anticipated 
     investment of capital and other resources which the applicant 
     believes will be required to bring the invention to practical 
     application;
       ``(2) as to the applicant's capability and intention to 
     fulfill the plan, including information regarding 
     manufacturing, marketing, financial, and technical resources;
       ``(3) of the fields of use for which the applicant intends 
     to practice the invention; and
       ``(4) of the geographic areas--
       ``(A) in which the applicant intends to manufacture any 
     product embodying the invention;
       ``(B) where the applicant intends to use or sell the 
     invention; or
       ``(C) both.''.
       (b) Conforming Amendment.--The item relating to section 209 
     in the table of sections for chapter 18 of title 35, United 
     States Code, is amended to read as follows:

``209. Licensing federally-owned inventions.''

     SEC. 4. REVIEW OF COOPERATIVE RESEARCH AND DEVELOPMENT 
                   AGREEMENT PROCEDURES.

       (a) Review.--The Director of the Office of Science and 
     Technology Policy, in consultation with the Office of 
     Management and Budget, relevant Federal agencies, national 
     laboratories, and any other person the director considers 
     appropriate, shall review the procedures used by Federal 
     agencies to gather and consider the views of other agencies 
     before final approval or disapproval of--
       (1) a joint work statement under section 12(c)(5)(C) or (D) 
     of the Stevenson-Wydler Technology Innovation Act of 1980 (15 
     U.S.C. 3710a(c)(5)(C) or (D));or
       (2) in the case of a laboratory described in section 
     12(d)(2)(A) of the Stevenson-Wydler Technology Innovation Act 
     of 1980 (15 U.S.C. 3710a(d)(2)(A)), a cooperative research 
     and development agreement under such section 12, that 
     involves national security, or relates to a project which may 
     have a significant impact on domestic or international 
     competitiveness.
       (b) Procedures.--Within 1 year after the date of enactment 
     of this Act, the director of the Office of Science and 
     Technology Policy shall establish and distribute to 
     appropriate Federal agencies--
       (1) specific criteria to indicate the necessity for 
     interagency review of an approval or disapproval described in 
     subsection (a); and
       (2) procedures for carrying out such interagency review.

     Procedures established under this subsection shall be 
     designed to the extent possible to use or modify existing 
     procedures, to minimize burdens on Federal agencies, and to 
     minimize delay in the approval of disapproval of the joint 
     work statement or cooperative research and development 
     agreement under interagency review.

     SEC. 5. TECHNICAL AMENDMENTS TO BAYH-DOLE ACT.

       Chapter 18 of title 35, United States Code (popularly known 
     as the ``Bayh-Dole Act''), is amended--
       (1) by amending section 202(e) to read as follows:
       ``(e) In any case when a Federal employee is a co-inventor 
     of any invention made under a funding agreement with a 
     nonprofit organization or small business firm, the Federal 
     agency employing such coinventor may, for the purpose of 
     consolidating rights in the invention----
       ``(1) license or assign whatever rights it may acquire in 
     the subject invention to the nonprofit organization or small 
     business firm; or
       ``(2) acquire any rights in the subject invention from the 
     nonprofit organization or small business firm, but only to 
     the extent the party from whom the rights are acquired 
     voluntarily enters into the transaction.''; and
       (2) in section 207(a)--
       (A) by striking ``patent applications, patents, or other 
     forms of protection obtained'' and inserting ``inventions'' 
     in paragraph (2); and
       (B) by inserting ``, including acquiring rights for the 
     Federal Government in any invention, but only to the extent 
     the party from whom the rights are acquired voluntarily 
     enters into the transaction, to facilitate the licensing of a 
     federally-owned invention'' after ``or through contract'' in 
     paragraph (3).

[[Page S5453]]

     SEC. 6. TECHNICAL AMENDMENTS TO THE STEVENSON-WYDLER 
                   TECHNOLOGY INNOVATION ACT OF 1980.

       Section 14(a)(1) of the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3710c(a)(1)) is amended----
       (1) in subparagraph (A)(i), by inserting ``, if the 
     inventor's or coinventor's rights are assigned to the United 
     States'' after ``inventor or coinventors''; and
       (2) in subparagraph (B), by striking ``succeeding fiscal 
     year'' and inserting ``2 succeeding fiscal years''.
                                 ______
                                 
      By Mr. BREAUX:
  S. 2121. A bill to encourage the development of more cost effective 
commercial space launch industry in the United States, and for other 
purposes; to the Committee on Commerce, Science, and Transportation.


                space launch cost reduction act of 1998

  Mr. BREAUX. Mr. President, I take this opportunity to rise to 
introduce a piece of legislation, which I will send to the desk. It is 
called the Space Launch Cost Reduction Act of 1998.
  The commercial space launch industry is an essential part of the U.S. 
economy and opportunities for U.S. companies are growing as 
international markets expand. United States trading partners have been 
able to aggressively lower their commercial space launch prices either 
through direct cash payments for commercially targeted product 
development or with indirect benefits derived from nonmarket economy 
status. Because United States incentives for launch vehicle development 
have historically focused on civil and military rather than commercial 
use, and as a result U.S. launch costs have remained relatively high, 
the U.S. share of the world commercial market has decreased from nearly 
100% twenty years ago to approximately 40% in 1998. This is very 
serious erosion.
  The key to regaining United States leadership in the world market is 
not another massive government program, but rather provision of just 
enough government support to enable the more cost effective private 
sector to build lower-cost space launch vehicles. Private sector 
companies across the United States are already attempting to develop a 
variety of lower-cost space launch vehicles, but lack of sufficient 
private financing has proven a major obstacle, an obstacle our trading 
partners have chosen to remove by providing direct access to government 
funding. Given the unique strength of private industry in the United 
States, a more effective alternative to the approach of our trading 
partners is for the U.S. government to provide limited financial 
incentives in the form of loan guarantees, which would help qualifying 
private-sector companies secure otherwise unattainable private 
financing, while at the same time keeping government involvement at an 
absolute minimum.
  The purpose of the Space Launch Cost Reduction Act of 1998 is, 
therefore, to ensure availability of otherwise unattainable private 
sector financing for private sector development of commercial space 
launch vehicles with launch costs significantly below current levels. 
As a result, it will be possible to: increase the international 
competitiveness of the United States space industry, encourage the 
growth of space-related commerce in the United States and 
internationally, increase the number of high-value jobs in United 
States space-related industries, and reduce United States Government 
space launch expenditures.
  Commercialization of space is an issue of importance not only to our 
nation as a whole but also to the state of Louisiana. Louisiana is 
already an active participant in the American space effort. For 
example, the Michoud Facility in New Orleans has been selected as the 
fabrication center for the experimental X-33 space vehicle's liquid 
oxygen tanks. The fuel tanks for the Space Shuttle are also built at 
Michoud, and Shuttle engines are tested at the Stennis Space Center in 
neighboring Mississippi. Furthermore, NASA has entered a partnership 
with the University of Southwestern Louisiana in Lafayette to establish 
a Regional Application Center for commercial remote sensing technology. 
Looking toward the future, Louisiana is clearly well positioned to 
participate actively in the commercialization of space and to benefit 
from the Space Launch Cost Reduction Act of 1998.
                                 ______
                                 
      By Mr. ROTH (for himself, and Mr. Moynihan):
  S. 2122. A bill to amend the Internal Revenue Code of 1986 to provide 
that certain liquidating distributions of a regulated investment 
company or real estate investment trust which are allowable as a 
deduction shall be included in the gross income of a distributee; to 
the Committee on Finance.


                            tax legislation

  Mr. ROTH. Mr. President, in coordination with the Treasury 
Department, Senator Moynihan and I are introducing a bill today to 
eliminate an unwarranted tax benefit which involves the liquidation of 
a Regulated Investment Company (``RIC'') or Real Estate Investment 
Trust (``REIT''), where at least 80 percent of the liquidating RIC or 
REIT is owned by a single corporation. Identical legislation is being 
introduced in the House of Representatives by Congressman Archer.
  The RIC and REIT rules allow individual shareholders to invest in 
stock and securities (in the case of RICs) and real estate assets (in 
the case of REITs) with a single level of tax. The single level of tax 
is achieved by allowing RICs and REITs to deduct the dividends they pay 
to their shareholders.
  Some corporations, however, have attempted to use the ``dividends 
paid deduction'' in combination with a separate rule that allows a 
corporate parent to receive property from an 80 percent subsidiary 
without tax when the subsidiary is liquidating. Taxpayers argue that 
the combination of these two rules permits income deducted by the RIC 
or REIT and paid to the parent corporation to be entirely tax-free 
during the period of liquidation of the RIC or REIT (which can extend 
over a period of years). The legislation is intended to eliminate this 
abusive application of these rules by requiring that amounts which are 
deductible dividends to the RIC or REIT are consistently treated as 
dividends by the corporate parent.
  RICs and REITs are important investment vehicles, particularly for 
small investors. The RIC and REIT rules are designed to encourage 
investors to pool their resources and achieve the type of investment 
opportunities, subject to a single level of tax, that would otherwise 
be available only to a larger investor. This legislation will not 
affect the intended beneficiaries of the RIC and REIT rules.
  Mr. President, I ask unanimous consent that the text of the bill and 
a technical explanation be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2122

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

     SECTION 1. TREATMENT OF CERTAIN DEDUCTIBLE LIQUIDATING 
                   DISTRIBUTIONS OF REGULATED INVESTMENT COMPANIES 
                   AND REAL ESTATE INVESTMENT TRUSTS.

       (a) In General.--Section 332 of the Internal Revenue Code 
     of 1986 (relating to complete liquidations of subsidiaries) 
     is amended by adding at the end the following new subsection:
       ``(c) Deductible Liquidating Distributions of Regulated 
     Investment Companies and Real Estate Investment Trusts.--If a 
     corporation receives a distribution from a regulated 
     investment company or a real estate investment trust which is 
     considered under subsection (b) as being in complete 
     liquidation of such company or trust, then, notwithstanding 
     any other provision of this chapter, such corporation shall 
     recognize and treat as a dividend from such company or trust 
     an amount equal to the deduction for dividends paid allowable 
     to such company or trust by reason of such distribution.''.
       (b) Conforming Amendments.--
       (1) The material preceding paragraph (1) of section 332(b) 
     of such Code is amended by striking ``subsection (a)'' and 
     inserting ``this section''.
       (2) Paragraph (1) of section 334(b) of such Code is amended 
     by striking ``section 332(a)'' and inserting ``section 332''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions after May 21, 1998.
                                  ____

  


                         Technical Explanation

       The bill provides that any amount which a liquidating RIC 
     or REIT may take as a deduction for dividends paid with 
     respect to an otherwise tax-free distribution to an 80-
     percent corporate owner is includible in the income of the 
     recipient corporation. The includible amount is treated as a 
     dividend received from the RIC or REIT. The liquidating 
     corporation may designate the amount treated as a dividend as 
     a capital gain dividend or, in the case of a RIC, an exempt 
     interest dividend or a dividend eligible for the

[[Page S5454]]

     70-percent dividends received deduction, to the extent 
     provided by the RIC or REIT provisions of the Code.
       The bill does not otherwise change the tax treatment of the 
     distribution under sections 332 or 337. Thus, for example, 
     the liquidating corporation will not recognize gain (if any) 
     on the liquidating distribution and the recipient corporation 
     will hold the assets at a carryover basis.
       The bill is effective for distributions on or after May 22, 
     1998, regardless of when the plan of liquidation was adopted.
       No inference is intended regarding the treatment of such 
     transactions under present law.
                                 ______
                                 
      By Mr. D'AMATO:
  S. 2125. A bill to amend the Internal Revenue Code of 1986 to provide 
for the tax treatment of section 42 housing cooperatives and the 
shareholders of such cooperatives, and for other purposes; to the 
Committee on Finance.


               low-income housing tax credit legislation

 Mr. D'AMATO. Mr. President, today I introduce legislation that 
will create a new homeownership opportunity with a proven method of 
building affordable housing. Current low-income housing production in 
the United States is driven largely by the low-income housing tax 
credit. The credit supports the development of 94 percent of all 
federally assisted multi-family affordable housing construction. Under 
current law, however, only rental housing can be developed with the 
credit. Everyone would agree that building homeownership is better than 
simply building homes for people. Homeowners are invested in their 
communities, take pride in their property, and will do what it takes to 
preserve the security and appearance of their homes.
  The legislation that I propose today will enable housing cooperatives 
and mutual housing associations to be developed with the credit. With 
these types of multi-family homeownership, tax credit investors can 
become non-resident shareholders of the developed property while 
allowing the residents to own their share of the property as well. From 
the very start, the residents will have a real ownership stake and 
control over their homes.
  A study undertaken by Abt Associates, Inc., commissioned by the 
National Cooperative Bank found that this legislation could result in 
the annual production of 1,600 units of low-income housing within five 
years of enactment. That means as many as 15,000 renters could be 
homeowners within five years.
  Mr. President, I urge my colleagues to join me in cosponsoring 
legislation to help bring the American dream of homeownership to many 
more Americans.
  Mr. President, I ask unanimous consent that the complete text of the 
bill be placed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2125

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

     SECTION 1. TAX TREATMENT OF SECTION 42 HOUSING COOPERATIVES 
                   AND SHAREHOLDERS OF SUCH COOPERATIVES.

       (a) In General.--Part III of subchapter T of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to cooperatives 
     and their patrons) is amended by adding at the end the 
     following new section:

     ``SEC. 1389. SPECIAL RULES FOR SECTION 42 HOUSING 
                   COOPERATIVES AND THEIR SHAREHOLDERS.

       ``(a) Allowance of Deductions and Credits.--
       ``(1) Non-patron shareholders.--In the case of a section 42 
     housing cooperative (as defined in subsection (b)(1)), the 
     non-patron shareholders of such cooperative shall be allowed 
     to take into account for purposes of calculating the taxable 
     income of such shareholders the following tax items:
       ``(A) 100 percent of all low-income housing tax credits to 
     which the section 42 housing cooperative is entitled under 
     section 42.
       ``(B) 100 percent of all interest allowable as a deduction 
     to the cooperative under section 163 and which is incurred 
     and accrued but unpaid by the cooperative on its indebtedness 
     contracted--
       ``(i) in the acquisition, construction, alteration, 
     rehabilitation, or maintenance of the houses or apartment 
     buildings, or
       ``(ii) in the acquisition of the land on which the houses 
     (or apartment buildings) are situated.
       ``(2) Patron shareholders.--In the case of a section 42 
     housing cooperative, the patron shareholders of such 
     cooperative shall be allowed a deduction equal to 100 percent 
     of the amounts paid by the cooperative within the taxable 
     year for the following items, except that in no event may a 
     patron shareholder deduct an amount in excess of such patron 
     shareholder's proportionate share of such specified items:
       ``(A) Real estate taxes allowable as a deduction to the 
     cooperative under section 164 which are paid or incurred by 
     the cooperative on the houses or apartment buildings and on 
     the land on which such houses (or apartment buildings) are 
     situated.
       ``(B) The interest allowable as a deduction to the 
     cooperative under section 163 for the taxable year and which 
     is paid by the cooperative during such taxable year on its 
     indebtedness contracted--
       ``(i) in the acquisition, construction, alteration, 
     rehabilitation, or maintenance of the houses or apartment 
     buildings, or
       ``(ii) in the acquisition of the land on which the houses 
     (or apartment buildings) are situated.
       ``(b) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Section 42 housing cooperative.--The term `section 42 
     housing cooperative' means a corporation--
       ``(A) having no more than 2 classes of stock outstanding, 
     consisting of--
       ``(i) shares of stock issued to persons who make an equity 
     contribution to the cooperative but who are not residents in 
     the houses or apartment buildings owned by the cooperative; 
     and
       ``(ii) shares of stock issued to persons who make an equity 
     contribution to the cooperative and who are residents in the 
     houses or apartment buildings owned by the cooperative;
       ``(B) in which each of the holders of patron stock is 
     entitled, solely by reason of the patron's ownership of such 
     stock in the cooperative, to occupy for dwelling purposes a 
     house, or an apartment in a building, owned by such 
     cooperative;
       ``(C) no shareholder of which is entitled (either 
     conditionally or unconditionally) to receive any distribution 
     not out of earnings and profits of the cooperative except on 
     a complete or partial liquidation of the cooperative;
       ``(D) 80 percent or more of the gross income of which for 
     the taxable year in which the taxes and interest described in 
     subsection (a) are paid or incurred is derived from patron 
     shareholders; and
       ``(E) which is entitled to claim a low-income housing tax 
     credit under section 42.
       ``(2) Shareholder's proportionate share.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `proportionate share' means that proportion which 
     the stock of the cooperative housing corporation owned by a 
     particular patron shareholder is of the total outstanding 
     patron stock of the corporation (including any stock held by 
     the corporation).
       ``(B) Special rule where allocation of taxes or interest 
     reflect cost to corporation of patron shareholder's unit.--
       ``(i) In general.--If, for any taxable year--

       ``(I) each dwelling unit owned or leased by a section 42 
     housing cooperative is separately allocated a share of such 
     cooperative's real estate taxes described in subsection 
     (a)(2)(A) or a share of such cooperative's interest described 
     in subsection (a)(2)(B), and
       ``(II) such allocation reasonably reflects the cost to such 
     cooperative of such taxes, or of such interest, attributable 
     to the shareholder's dwelling unit (and such unit's share of 
     the common areas),

     then the term `proportionate share' means the shares 
     determined in accordance with the allocations described in 
     subclause (II).
       ``(ii) Election by cooperative required.--Clause (i) shall 
     apply with respect to any section 42 housing cooperative only 
     if such cooperative elects its application. Such an election, 
     once made, may be revoked only with the consent of the 
     Secretary.
       ``(3) Prior approval of occupancy.--
       ``(A) In general.--For purposes of this section, in the 
     following cases there shall not be taken into account the 
     fact that (by agreement with the section 42 housing 
     cooperative) the person or the person's nominee may not 
     occupy the house or apartment without the prior approval of 
     such cooperative:
       ``(i) In any case in which a person acquires stock of a 
     section 42 housing cooperative by operation of law.
       ``(ii) In any case in which a person other than an 
     individual acquires stock of a section 42 housing 
     cooperative.
       ``(iii) In any case in which the original seller acquires 
     any stock of the section 42 housing cooperative from the 
     cooperative not later than 1 year after the date on which the 
     apartments or houses (or leasehold interests therein) are 
     transferred by the original seller to the cooperative.
       ``(B) Original seller defined.--For purposes of 
     subparagraph (A)(iii), the term `original seller' means the 
     person from whom the cooperative has acquired the apartments 
     or houses (or leasehold interest therein).
       ``(4) Application of section to mutual housing 
     associations.--
       ``(A) In general.--In the case of a section 42 housing 
     cooperative which is a mutual housing association, this 
     section shall be applied--
       ``(i) by substituting `membership certificates' for `stock' 
     or `shares of stock', and
       ``(ii) by substituting `membership certificate-holders' for 
     `shareholders'.
       ``(B) Mutual housing association.--For purposes of 
     subparagraph (A), the term `mutual housing association' means 
     a resident-controlled, State-chartered organization described 
     in section 501(c)(3) and exempt from tax under section 
     501(a).
       ``(c) Treatment as Property Subject to Depreciation.--

[[Page S5455]]

       ``(1) In general.--
       ``(A) By non-patron shareholders.--Non-patron shares of 
     stock (within the meaning of subsection (b)(1)(A)(i)) shall 
     be treated as property subject to the allowance for 
     depreciation under section 167(a). Such shares of stock shall 
     be treated as residential real property for purposes of 
     determining the appropriate depreciation method under section 
     168(b), the applicable recovery period under section 168(c), 
     and the applicable convention under section 168(d).
       ``(B) By patron shareholders.--So much of the shares of 
     stock of a patron shareholder (within the meaning of 
     subsection (b)(1)(A)(ii)) as is allocable, under regulations 
     prescribed by section 216(c), to a proprietary lease or right 
     of tenancy subject to the allowance for depreciation under 
     section 167(a) shall, to the extent such proprietary lease or 
     right of tenancy is used by such patron shareholder in a 
     trade or business or for the production of income, be treated 
     as property subject to the allowance for depreciation under 
     section 167(a).
       ``(2) Deduction limited to adjusted basis in stock.--
       ``(A) In general.--The amount of any deduction for 
     depreciation allowable under section 167(a) to a non-patron 
     or patron shareholder with respect to any stock for any 
     taxable year by reason of subparagraph (A) or (B) of 
     paragraph (1), respectively, shall not exceed the adjusted 
     basis of such stock as of the close of the taxable year of 
     the shareholder in which such deduction was incurred.
       ``(B) Carryforward of disallowed amount.--The amount of any 
     deduction which is not allowed by reason of subparagraph (A) 
     shall, subject to the provisions of subparagraph (A), be 
     treated as a deduction allowable under section 167(a) in the 
     succeeding taxable year.
       ``(3) No limitation on deduction by section 42 housing 
     cooperative.--Nothing in this section shall be construed to 
     limit or deny a deduction for depreciation under section 
     167(a) by a section 42 housing cooperative with respect to 
     property owned by such cooperative and occupied by the patron 
     shareholders thereof.
       ``(d) Disallowance of Deduction for Certain Payments to the 
     Cooperative.--No deduction shall be allowed to the holder of 
     non-patron or patron stock in a section 42 housing 
     cooperative for any amount paid or accrued to such 
     cooperative during any taxable year to the extent that such 
     amount is properly allocable to amounts paid or incurred at 
     any time by the cooperative which are chargeable to the 
     cooperative's capital account. The shareholder's adjusted 
     basis in the stock in the cooperative shall be increased by 
     the amount of such disallowance.
       ``(e) Restriction on the Resale of Patron Stock.--Upon the 
     transfer of patron stock, the consideration received by the 
     holder of such stock shall not exceed the shareholder's 
     adjusted equity in such stock. For purposes of this 
     subsection, the term `adjusted equity' means the sum of--
       ``(1) the consideration paid for such stock by the first 
     shareholder, as adjusted by a cost-of-living adjustment and 
     any other acceptable adjustments determined by the Secretary, 
     and
       ``(2) payments made by such shareholder for improvements to 
     the house or apartment occupied by the shareholder.
       ``(f) Distributions by Section 42 Housing Cooperative.--
     Except as provided in regulations under section 216(e), no 
     gain or loss shall be recognized on the distribution by a 
     section 42 housing cooperative of a dwelling unit to a holder 
     of patron stock in such cooperative if such distribution is 
     in exchange for the shareholder's stock in the cooperative 
     and such exchange qualifies for nonrecognition of gain under 
     section 1034(f).''.
       (b) Conforming Amendments.--
       (1) Section 42 of the Internal Revenue Code of 1986 
     (relating to low-income housing credit) is amended by adding 
     at the end the following new subsection:
       ``(o) Section 42 Housing Cooperatives.--In the case of a 
     section 42 housing cooperative (as defined in section 
     1389(b)(1)), the holders of the non-patron stock (within the 
     meaning of section 1389(b)(1)(A)(i)) shall be entitled to any 
     and all tax credits that would otherwise be available to such 
     cooperative under this section. Any recapture of credit 
     calculated against the section 42 housing cooperative under 
     subsection (j) shall be an increase in the tax under this 
     chapter for the holders of the non-patron stock in proportion 
     to the relative holdings of such stock during the period 
     giving rise to such recapture.''.
       (2) Section 42(g)(2)(B) of such Code is amended by striking 
     ``and'' at the end of clause (iii), by striking the period at 
     the end of clause (iv) and inserting ``, and'', and by 
     inserting after clause (iv) the following new clause:
       ``(v) does not include any amounts paid by a tenant in 
     connection with the acquisition or holding of any patron 
     stock (within the meaning of section 1389(b)(1)(A)(ii)).''.
       (3) Section 42(i) of such Code is amended by adding at the 
     end the following new paragraph:
       ``(8) Impact of section 42 housing cooperative's right of 
     first refusal to acquire stock of a section 42 housing 
     cooperative.--
       ``(A) In general.--No Federal income tax benefit shall fail 
     to be allowable to a non-patron or patron shareholder (within 
     the meaning of section 1389(b)(1)) of a section 42 housing 
     cooperative (as defined in section 1389(b)(1)) with respect 
     to any qualified low-income building merely by reason of a 
     right of first refusal or option or both held by the section 
     42 housing cooperative to purchase non-patron stock of the 
     cooperative after the close of the compliance period for a 
     price which is not less than the minimum purchase price 
     determined under subparagraph (B).
       ``(B) Minimum purchase price.--For purposes of subparagraph 
     (A), the minimum purchase price for the stock of a section 42 
     housing cooperative is an amount equal to the present value 
     of the remaining depreciation deductions which would be 
     allowable under section 1389(c)(1) to the holder of such 
     stock. For purposes of determining present value, the 
     discount rate provided in subsection (b)(2)(C)(ii) shall be 
     applicable as determined at the time of the exercise of such 
     option or right of first refusal.''.
       (4) Section 1381(a) of such Code is amended by striking 
     ``and'' at the end of paragraph (1), by striking the period 
     at the end of paragraph (2) and inserting '', and'', and by 
     adding at the end the following new paragraph:
       ``(3) any section 42 housing cooperative (as defined in 
     section 1389(b)(1)).''.
       (5) The table of sections for part III of subchapter T of 
     chapter 1 of such Code is amended by adding at the end the 
     following new item:

``Sec. 1389. Special rules for section 42 housing cooperatives and 
              their shareholders.''.

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