[Congressional Record Volume 144, Number 78 (Tuesday, June 16, 1998)]
[Senate]
[Pages S6405-S6423]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ALLARD (for himself, Mr. Brownback, and Mr. DeWine):
  S. 2170. A bill to amend the Internal Revenue Code of 1986 to 
eliminate the temporary increase in unemployment tax; to the Committee 
on Finance.


            legislation to repeal temporary unemployment tax

  Mr. ALLARD. Mr. President, today I introduce legislation to repeal 
the ``temporary'' 0.2 percent Federal Unemployment Tax (FUTA) surtax.
  The ``temporary'' surtax was enacted by Congress in 1976 to repay the 
general fund of the Treasury for funds borrowed by the unemployment 
trust fund. While the borrowings were repaid in 1987, Congress has 
continued to extend the surtax in tax bill after tax bill.
  Since 1987, Congress has used extension of the surtax to help pay for 
tax packages. In fact, the surtax was most recently extended to help 
pay for the 1997 tax bill.
  This is unfair to small business which has been told repeatedly that 
the surtax was temporary and would be

[[Page S6406]]

repealed when it was no longer needed to finance the unemployment tax 
system.
  The reason for the FUTA surtax no longer exists. The economy is 
experiencing the highest level of employment in decades, and all state 
unemployment funds have surpluses.
  It is inappropriate for the government to continue to raise surplus 
unemployment taxes and use those surpluses for purposes totally 
unrelated to the unemployment tax system.
  The FUTA surtax hits small businesses hardest because they are often 
labor intensive. Any payroll tax is added directly to the employer's 
payroll costs, and payroll taxes must be paid whether the business has 
a profit or loss.
  Mr. President, prior to my election to the House of Representatives 
in 1990, I ran a small business. I am well aware of payroll taxes and 
the burden that they can place on a business.
  The unemployment surtax was in place when I ran my small business.
  I suspect that my view of the surtax is similar to the view of most 
small business owners. It is one thing to have a surtax when 
unemployment is high. It is totally unjustified when unemployment is at 
the lowest level in three decades.
  What really upsets small business owners is the fact that the 
government is breaking its commitment that the surtax would be 
temporary. This is not the way the federal government should do 
business.
  Repeal of the 0.2 percent surtax will reduce the tax burden on 
employers and workers by $6 billion over the next five years.
  Lower payroll taxes mean higher wages for workers. While the employer 
appears to fully pay the unemployment surtax and other payroll taxes, 
the economic evidence is strong that the cost of payroll taxes is 
passed on to workers in form of lower wages.
  Consistent tax relief will help to ensure that our economy remains 
the strongest and most competitive in the world. Low taxes reduce 
unemployment and help ensure that future surtaxes are unnecessary.
  Mr. President, I ask that the text of the bill be printed in the 
Record along with several charts showing the level of State 
Unemployment System Reserves from 1991-1997.
  There being no objection, the items were ordered to be printed in the 
Record, as follows:

                                S. 2170

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

     SECTION 1. REPEAL OF TEMPORARY UNEMPLOYMENT TAX.

       Section 3301 of the Internal Revenue Code of 1986 (relating 
     to rate of unemployment tax) is amended--
       (1) by striking ``2007'' in paragraph (1) and inserting 
     ``1998'';and
       (2) by striking ``2008'' in paragraph (2) and inserting 
     ``1999''.
                                  ____


                    STATE UNEMPLOYMENT COMPENSATION SYSTEM RESERVES AND RATIO OF RESERVES TO TOTAL WAGES BY STATE AND YEAR, 1991-1995
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                Net reserves as of Dec. 31 of each year (thousands)           Ratio of year-end reserves to total wages
                                      ----------------------------------------------------------------------                  (percent)
                State                                                                                       --------------------------------------------
                                           1995          1994          1993          1992          1991        1995     1994     1993     1992     1991
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama..............................      $534,470      $551,842     $570,118      $550,280      $585,725      1.61     1.77     1.94     1.96     2.24
Alaska...............................       201,017       210,563      227,911       232,320       243,155      3.56     3.81     4.32     4.57     4.98
Arizona..............................       534,640       432,449      368,782       372,423       437,667      1.48     1.33     1.26     1.36     1.71
Arkansas.............................       200,866       169,795      134,432        81,340       103,629      1.12     1.02     0.87     0.55     0.76
California...........................     2,104,220     2,092,695    2,450,402     2,786,713     4,190,197      0.68     0.72     0.87     0.99     1.52
Colorado.............................       480,582       434,482      390,435       339,246       312,036      1.22     1.21     1.15     1.10     1.09
Connecticut..........................       116,692         3,311        1,062      (653,215)     (353,767)     0.27     0.01     0.00     0.00     0.00
Delaware.............................       271,807       244,013      225,943       218,719       223,685      3.24     3.14     3.05     3.04     3.20
District of Columbia.................        68,636        41,141        5,937       (19,286)       12,465      0.57     0.35     0.05     0.00     0.12
Florida..............................     1,806,432     1,621,614    1,505,570     1,443,603     1,691,814      1.53     1.47     1.45     1.47     1.84
Georgia..............................     1,453,118     1,281,507    1,094,999       965,870       962,324      2.03     1.95     1.79     1.68     1.81
Hawaii...............................       213,496       232,859      310,155       362,123       420,991      2.07     2.26     3.01     3.57     4.39
Idaho................................       243,090       245,096      247,823       240,141       243,573      2.88     3.14     3.49     3.67     4.09
Illinois.............................     1,629,210     1,247,066      851,918       847,622     1,172,283      1.22     0.99     0.71     0.74     1.08
Indiana..............................     1,228,070     1,132,343    1,024,658       941,632       899,139      2.16     2.11     2.05     1.99     2.02
Iowa.................................       725,149       708,450      655,066       615,474       594,626      3.10     3.23     3.20     3.16     3.27
Kansas...............................       704,008       735,717      658,053       605,827       571,904      2.77     3.20     3.03     2.89     2.91
Kentucky.............................       470,826       425,682      402,311       364,287       357,940      1.61     1.55     1.57     1.49     1.58
Louisiana............................     1,003,378       868,819      689,382       600.917       559,975      3.15     2.92     2.47     2.22     2.15
Maine................................        95,289        74,621       51,403        35,108        77,553      1.06     0.87     0.62     0.44     1.01
Maryland.............................       605,415       408,994      219,071       145,839       224,970      1.36     0.96     0.54     0.37     0.59
Massachusetts........................       527,273       184,933     (115,987)     (379,918)     (234,742)     0.70     0.26     0.00     0.00     0.00
Michigan.............................     1,497,688       866,906      364,530       (72,492)     (166,509)     1.45     0.90     0.42     0.00     0.00
Minnesota............................       459,621       369,776      257,584       224,091       309,473      0.94     0.80     0.59     0.54     0.80
Mississippi..........................       551,318       490,392      410,259       345,352       348,593      3.19     2.98     2.74     2.48     2.69
Missouri.............................       196,933       118,466       (7,749)        3,101       199,473      0.40     0.26     0.00     0.01     0.30
Montana..............................       122,242       110,910      104,415        96,370        91,119      2.08     1.95     1.91     1.87     1.91
Nebraska.............................       194,283       188,365      171,938       160,713       146,184      1.45     1.51     1.49     1.46     1.42
Nevada...............................       297,866       289,804      238,398       233,667       295,919      1.69     1.70     1.68     1.79     2.46
New Hampshire........................       250,884       211,580      164,455       129,582       127,995      2.25     2.06     1.71     1.38     1.46
New Jersey...........................     1,987,790     1,947,033    1,965,236     2,439,970     2,564,278      2.06     2.12     2.23     2.86     3.16
New Mexico...........................       354,874       317,264      271,194       238,999       220,932      3.25     3.13     2.91     2.77     2.73
New York.............................       248,978       190,467      129,409       213,914     1,191,450      0.12     0.10     0.07     0.12     0.69
North Carolina.......................     1,531,117     1,555,329    1,514,674     1,387,170     1,373,719      2.27     2.49     2.60     2.52     2.70
North Dakota.........................        57,415        58,641       56,267        50,306        50,914      1.41     1.55     1.59     1.51     1.64
Ohio.................................     1,600,533     1,166,837      845,054       602,464       647,410      1.46     1.13     0.88     0.65     0.74
Oklahoma.............................       521,683       474,866      437,800       418,907       426,398      2.32     2.21     2.13     2.10     2.24
Oregon...............................       905,985       994,533    1,096,695     1,054,524     1,043,810      3.21     3.86     4.63     4.71     4.98
Pennsylvania.........................     1,914,777     1,518,999    1,105,425       807,828     1,155,988      1.78     1.48     1.12     0.84     1.26
Puerto Rico..........................       634,291       674,663      730,873       749,255       750,020      6.71     7.54     8.39     9.05     9.64
Rhode Island.........................       110,086       119,262      119,294       104,498       143,617      1.33     1.51     1.56     1.41     2.03
South Carolina.......................       556,650       502,237      467,494       433,442       455,097      1.84     1.79     1.77     1.73     1.92
South Dakota.........................        51,622        51,208       49,773        50,416        49,701      1.09     1.16     1.23     1.34     1.45
Tennessee............................       822,821       747,477      672,261       603,130       612,653      1.66     1.62     1.58     1.50     1.67
Texas................................       584,866       480,322      445,633       586,472       942,734      0.34     0.30     0.30     0.41     0.69
Utah.................................       468,030       411,411      366,524       342,146       327,893      2.93     2.86     2.82     2.83     2.96
Vermont..............................       206,720       195,418      183,025       180,730       192,675      4.51     4.51     4.37     4.49     5.05
Virginia.............................       788,787       658,588      553,441       506,641       591,166      1.27     1.13     1.01     0.97     1.19
Virgin Islands.......................        40,064        40,843       51,575        47,416        43,241      6.86     6.67     6.60     7.32     7.31
Washington...........................     1,417,701     1,565,417    1,743,146     1,766,006     1,707,604      2.93     3.45     4.05     4.18     4.40
West Virginia........................       164,036       161,671      154,512       140,517       157,124      1.44     1.47     1.49     1.38     1.62
Wisconsin............................     1,503,641     1,400,119    1,241,918     1,194,553     1,171,822      3.06     3.03     2.87     2.90     3.07
Wyoming..............................       142,310       136,755      127,332       109,826        98,952      4.22     4.15     4.08     3.71     3.48
                                      ------------------------------------------------------------------------------------------------------------------
      Total..........................    35,403,296    31,343,551   28,187,816    27,111,772    31,494,605      1.40     1.32     1.25     1,25     1.49
--------------------------------------------------------------------------------------------------------------------------------------------------------
Difference between detail and totals due to rounding 1995 data subject to revision. Ratio of reserves to wages not calculated for States with negative
  balances.
 
Source: U.S. Department of Labor. Prepared by the National Foundation for U.C. & W.C., June 1997.


                                 FINANCIAL INFORMATION BY STATE FOR CY96.4, 1996
----------------------------------------------------------------------------------------------------------------
                                                  Revenue (12                                 Total      Loans/
                     State                         mos) (in     TF Balance (in   Mos. in    loans (in     cov.
                                                  thousands)      thousands)        TF     thousands)   employee
----------------------------------------------------------------------------------------------------------------
United States.................................     $23,009,990     $38,631,922       21.3          $0      $0.00
                                               -----------------------------------------------------------------

[[Page S6407]]

 
Alabama.......................................         134,029         483,472       27.3           0       0.00
Alaska........................................         109,089         194,188       19.8           0       0.00
Arizona.......................................         223,143         627,059       46.3           0       0.00
Arkansas......................................         169,670         202,784       13.0           0       0.00
California....................................       3,590,823       2,877,452       11.7           0       0.00
Colorado......................................         187,897         510,956       32.5           0       0.00
Connecticut...................................         592,538         277,861        7.4           0       0.00
Delaware......................................          68,409         258,468       31.9           0       0.00
Dist. of Colum................................         133,380          99,368       12.2           0       0.00
Florida.......................................         677,796       1,947,557       35.2           0       0.00
Georgia.......................................         382,294       1,634,073       67.0           0       0.00
Hawaii........................................         179,540         211,267       13.3           0       0.00
Idaho.........................................         105,900         266,228       32.1           0       0.00
Illinois......................................       1,199,050       1,638,560       15.2           0       0.00
Indiana.......................................         238,343       1,273,086       58.0           0       0.00
Iowa..........................................         133,905         718,845       45.9           0       0.00
Kansas........................................          42,487         651,074       52.6           0       0.00
Kentucky......................................         234,997         501,304       25.7           0       0.00
Louisana......................................         204,469       1,131,052       94.7           0       0.00
Maine.........................................         122,601         112,122       12.5           0       0.00
Maryland......................................         421,722         690,786       22.9           0       0.00
Massachusetts.................................       1,130,136         914,631       14.0           0       0.00
Michigan......................................       1,233,803       1,830,928       21.8           0       0.00
Minnesota.....................................         386,523         513,033       16.4           0       0.00
Mississippi...................................          99,520         553,222       50.0           0       0.00
Missouri......................................         381,576         307,507       12.8           0       0.00
Montana.......................................          58,841         125,900       24.9           0       0.00
Nebraska......................................          41,748         195,210       44.8           0       0.00
Nevada........................................         177,064         348,278       28.6           0       0.00
New Hampshire.................................          41,781         268,011       91.7           0       0.00
New Jersey....................................       1,448,896       2,028,818       18.1           0       0.00
New Mexico....................................          85,729         385,531       59.6           0       0.00
New York......................................       2,211,440         470,400        2.8           0       0.00
North Carolina................................         113,075       1,335,565       39.6           0       0.00
North Dakota..................................          24,364          50,072       19.1           0       0.00
Ohio..........................................         781,640       1,750,968       28.8           0       0.00
Oklahoma......................................         128,728         563,895       64.3           0       0.00
Oregon........................................         384,046         941,419       28.9           0       0.00
Pennsylvania..................................       1,612,406       2,031,947       14.9           0       0.00
Puerto Rico...................................         149,262         595,703       31.8           0       0.00
Rhode Island..................................         184,004         116,240        7.4           0       0.00
South Carolina................................         208,829         603,410       36.2           0       0.00
South Dakota..................................          12,291          49,542       39.9           0       0.00
Tennessee.....................................         284,220         826,526       30.8           0       0.00
Texas.........................................       1,014,460         642,233        7.7           0       0.00
Utah..........................................          96,262         523,880       89.2           0       0.00
Vermont.......................................          48,595         218,259       49.5           0       0.00
Virginia......................................         260,890         897,198       55.4           0       0.00
Virgin Islands................................           9,345          42,069       51.5           0       0.00
Washington....................................         644,606       1,332,508       19.7           0       0.00
West Virginia.................................         130,182         157,345       12.8           0       0.00
Wisconsin.....................................         445,248       1,556,922       37.2           0       0.00
Wyoming.......................................          28,401         147,087       54.0           0       0.00
----------------------------------------------------------------------------------------------------------------


              FINANCIAL INFORMATION BY STATE FOR CYQ, 1997
------------------------------------------------------------------------
                                      Revenues,                  TF as
                                       last 12     TF balance   percent
               State                  months (in      (in       of total
                                      thousands)   thousands)  wages \1\
------------------------------------------------------------------------
Alabama............................     $140,978     $451,425       1.21
Alaska.............................      131,645      202,416       3.46
Arizona............................      224,651      741,050       1.70
Arkansas...........................      183,101      204,319       1.03
California.........................    3,367,845    3,737,815       1.05
Colorado...........................      198,748      574,413       1.22
Connecticut........................      637,125      532,692       1.06
Delaware...........................       75,692      279,173       2.86
District of Col....................      132,481      135,627       0.94
Florida............................      685,668    2,090,222       1.55
Georgia............................      350,964    1,797,102       2.13
Hawaii.............................      186,510      216,658       2.04
Idaho..............................       99,412      280,382       3.00
Illinois...........................    1,226,328    1,742,968       1.16
Indiana............................      268,016    1,362,463       2.15
Iowa...............................      144,156      727,327       2.79
Kansas.............................       46,633      606,735       2.16
Kentucky...........................      269,075      571,366       1.71
Louisiana..........................      213,963    1,275,668       3.55
Maine..............................      118,089      136,019       1.35
Maryland...........................      349,967      720,552       1.42
Massachusetts......................    1,222,144    1,446,164       1.64
Michigan...........................    1,184,719    2,222,714       1.93
Minnesota..........................      398,707      564,628       0.98
Mississippi........................      166,992      563,901       2.95
Missouri...........................      381,802      417,706       0.75
Montana............................       65,306      135,604       2.11
Nebraska...........................       57,932      205,727       1.33
Nevada.............................      224,837      387,888       1.79
New Hampshire......................       26,426      278,296       2.16
New Jersey.........................    1,459,837    2,384,916       2.21
New Mexico.........................       99,244      431,159       3.61
New York...........................    2,402,806      990,176       0.43
North Carolina.....................      253,942    1,301,184       1.67
North Dakota.......................       26,246       38,057       0.83
Ohio...............................      719,622    1,874,943       1.53
Oklahoma...........................      107,585      608,942       2.36
Oregon.............................      462,961    1,068,843       3.13
Pennsylvania.......................    1,587,542    2,253,703       1.87
Puerto Rico........................      203,816      586,659       5.30
Rhode Island.......................      248,423      160,044       1.78
South Carolina.....................      219,733      687,060       2.02
South Dakota.......................       14,186       48,939       0.91
Tennessee..........................      296,749      847,842       1.52
Texas..............................    1,014,596      706,577       0.35
Utah...............................       97,876      572,849       2.97
Vermont............................       50,047      233,537       4.59
Virgin Islands.....................        7,693       45,434       6.82
Virginia...........................      222,448      979,376       1.35
Washington.........................      810,440    1,447,195       2.42
West Virginia......................      139,030      165,917       1.37
Wisconsin..........................      475,595    1,632,214       2.95
Wyoming............................       31,217      158,573       4.26
                                    ------------------------------------
United States......................   23,731,544   43,833,157       1.51
------------------------------------------------------------------------
\1\ Based on estimatd wages for the most recent 12 months.

                                 ______
                                 
      By Mr. BOND:
  S. 2173. A bill to amend the Rehabilitation Act of 1973 to provide 
for research and development of assistance technology and universally 
designed technology, and for other purposes; to the Committee on Labor 
and Human Resources.


   ASSISTIVE AND UNIVERSALLY DESIGNED TECHNOLOGY IMPROVEMENT ACT FOR 
                     INDIVIDUALS WITH DISABILITIES

  Mr. BOND. Mr. President, today I am introducing a bill which will 
improve assistive and universally designed technology research and 
development and increase access to this technology for all Americans 
with disabilities.

  Assistive and universally designed technology provides a disabled 
individual the means to function better in the workplace or the home. 
Assistive and universally designed technology is technology that aids 
the millions of Americans with physical or mental disabilities. For 
example, assistive technology can mean a computer that can be used by 
an individual with Cerebral Palsy, a hearing aid for an aging 
individual or enhanced voice recognition for someone with Multiple 
Sclerosis, while universally designed technology can mean closed 
captioning for the deaf or for patrons in crowded restaurants and 
accessability ramps for individuals in wheelchairs or mothers with 
strollers.
  A year ago my office was approached by a small business owner and 
Missouri's United Cerebral Palsy asking for support for testing of a 
breakthrough in Voice Recognition technology. During my search to find 
an appropriate place for funding for this voice recognition technology, 
my staff and I became familiar with the overall government efforts in 
this area.
  There are many significant problems in the federal government's 
efforts in assistive technology research and development. My finding's 
were validated by a recent report from the National Academy of 
Sciences' Institute of Medicine, ``Enabling America: Assessing the Role 
of Rehabilitation Science and Engineering,'' which stressed that the 
federal government's efforts in this area are lacking awareness, 
funding, and coordination.

[[Page S6408]]

  My distinguished colleague in the House, Congresswoman Connie 
Morella, Chairwoman of the House Science's Subcommittee on Technology, 
joins me today in introducing the Assistive and Universally Designed 
Technology Improvement Act for Individuals with Disabilities.
  The Act provides federally supported incentives in all areas of 
assistive and universally designed technology, including need 
identification, research and development, product evaluation, 
technology transfer, and commercialization. These incentives achieve 
the goal of improving the quality, functional capability, distribution, 
and affordability of this essential technology.
  This legislation does several things.
  First, the bill includes an improved peer review process at the 
National Institute on Disability Research and Rehabilitation (NIDRR) at 
the Department of Education. This provision requires standing peer 
review panels and clarifies the evaluation of applications for funding 
of assistive and universally designed technology. These improvements 
provide more assistive and universally designed technology products to 
the marketplace, increase small business involvement in research and 
development, and assure research and development efforts cover all 
disability groups including persons with physical and mental 
disabilities as well as the aging and rural technology users.
  Second, the legislation augments technology transfer through 
improving the role of the Interagency Committee on Disability Research 
(ICDR) by increasing its authority, accountability and ability to 
coordinate. Provisions are included for increased usage of the Federal 
labs to improve coordination with all Federal agencies involved in 
assistive and universally designed technology research and development 
and for providing public and private sector partnerships for assistive 
and universally designed technology research and development.

  Third, to increase the market for assistive technology, the bill 
clarifies Title III of the Tech Act for the Microloan program. This 
microloan program assists disabled persons in obtaining assistive and 
universally designed technology.
  Fourth, funds are authorized for the Interagency Committee on 
Disability Research to hire staff and for operating costs associated 
with issuing surveys and reports. Additionally, $10 million in funds 
are authorized for the National Institute on Disability Research and 
Rehabilitation to provide for assistive and universally designed 
technology research and development.
  Finally, to increase access to assistive and universally designed 
technology, tax incentives are included to provide businesses a tax 
credit for the development of assistive technology, to expand the 
architectural and transportation barrier removal deduction to include 
communication barriers, and to expand the work opportunity credit to 
include expenses incurred in the acquisition of technology to 
facilitate the employment of any individual with a disability.
  These tax incentives and micro loans will assist individuals with 
disabilities to obtain assistive and universally designed technology in 
order to improve their quality of life, to secure and maintain 
employment, and to assist small businesses in complying with Americans 
with Disabilities Act requirements, which in effect, results in 
lessened financial burdens on society.
  As technology increasingly plays a role in the lives of all persons 
in the United States, in the conduct of business, in the functioning of 
government, in the fostering of communication, in the transforming of 
employment, and in the provision of education, it also greatly impacts 
the lives of the more than 50 million individuals with disabilities in 
the United States.
  An agenda, including support for universal design, represents the 
only effective means for guaranteeing the benefits of technology to all 
persons in the United States, regardless of disability or age, in 
addition to assuring for United States industry the continued growth in 
markets that will warrant continued high levels of innovation and 
research.
  This legislation has the support of many organizations, including: 
The Missouri Assistive Technology Advisory Council, the United Cerebral 
Palsy Association, the Rehabilitation Engineering and Assistive 
Technology Society of North America, the National Easter Seal Society, 
and the Association of Tech Act Projects.
  The bill also has broad bipartisan and bicameral support. My 
colleagues, Senator Jeffords, Senator Harkin, Senator Grassley, and 
Congresswoman Connie Morella have been very helpful in my efforts to 
improve the role of the federal government in assistive and universally 
designed technology.
  Let me conclude by taking special note of the help of the National 
and Missouri United Cerebral Palsy, as well as the Missouri Assistive 
Technology Project, the Federal Laboratory Consortium, and the numerous 
assistive and universally designed technology and disability community 
advocate organizations, for their assistance in developing and 
advocating this legislation.
  Mr. President, I ask unanimous consent that the bill, the amendment I 
submit today, and letters of support be printed in the Record.
  There being no objection, the items were ordered to be printed in the 
Record, as follows:

                                S. 2173

       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 ``Assistive and Universally 
     Designed Technology Improvement Act for Individuals with 
     Disabilities''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The area of assistive technology is greatly overlooked 
     by the Federal Government and the private sector. While 
     assistive technology's importance spans age and disability 
     classifications, assistive technology does not maintain the 
     recognition in the Federal Government necessary to provide 
     important assistance for research and development programs or 
     to individuals with disabilities. The private sector lacks 
     adequate incentives to produce assistive technology, and end-
     users lack adequate resources to acquire assistive 
     technology.
       (2) As technology has come to play an increasingly 
     important role in the lives of all persons in the United 
     States, in the conduct of business, in the functioning of 
     government, in the fostering of communication, in the conduct 
     of commerce, in the transformation of employment, and in the 
     provision of education, technology's impact upon the lives of 
     the more than 50,000,000 individuals with disabilities in the 
     United States has been comparable to technology's impact upon 
     the remainder of our Nation's citizens. No development in 
     mainstream technology can be imagined that will not have 
     profound implications for individuals with disabilities.
       (3) In a technological environment, the line of demarcation 
     between assistive and mainstream technology becomes ever more 
     difficult to draw, and the decisions made by the designers of 
     mainstream equipment and services will increasingly determine 
     whether and to what extent the equipment and services can be 
     accessed and used by individuals with disabilities.
       (4) A commitment to assistive technology, while remaining 
     important, cannot alone ensure access to technology and 
     communications networks by individuals with disabilities. An 
     agenda, including support for universal design, represents 
     the only effective means for guaranteeing the benefits of 
     technology to all persons in the United States, regardless of 
     disability or age, and for assuring for United States 
     industry the continued growth in markets that will warrant 
     continued high levels of innovation and research.
       (5) The Federal Government needs to make improvements to 
     peer review processes that affect assistive technology 
     research and development.
       (6) There are insufficient links between federally funded 
     assistive technology research and development programs and 
     the private sector entities responsible for translating 
     research and development into significant new products in the 
     marketplace for end-users.
       (7) The Federal Government does not provide assistive 
     technology that is universally designed and targets older and 
     rural assistive technology end-users.
       (8) The Federal Government does not coordinate all Federal 
     assistive technology research and development.
       (9) Small businesses, which provide many innovative ideas 
     for assistive technology and provide the vast majority of 
     research and development efforts that lead to viable 
     commercial assistive technology products, are not utilized in 
     Federal assistive technology research and development efforts 
     to the extent that small businesses may play a key role in 
     assistive technology research and development. In addition, 
     small businesses lack access to the resources of the Federal 
     laboratories and would benefit from partnerships with the 
     Federal laboratories.
       (10) Many more individuals with disabilities could secure 
     and maintain employment and move from income supports to 
     competitive work if given the ability to purchase assistive 
     technology. Tax incentives for businesses to purchase 
     assistive technology for

[[Page S6409]]

     their employees, and micro loans for individuals to purchase 
     assistive technology, help individuals with disabilities 
     improve their quality of life. Such incentives and loans lead 
     to more productive lives, while lessening the financial 
     burdens on society.

     SEC. 3. PURPOSE.

       The purposes of this Act are--
       (1) to improve the quality, functional capability, 
     distribution, and affordability of assistive technology and 
     universally designed technology, through federally supported 
     incentives for all the participants in need identification, 
     research and development, product evaluation, technology 
     transfer, and commercialization, for such technologies, to 
     enhance quality of life and ability to obtain employment for 
     all individuals with disabilities;
       (2) to clarify the role of the National Institute on 
     Disability and Rehabilitation Research at the Department of 
     Education so as to provide for better peer reviews;
       (3) to improve coordination of Federal assistive technology 
     research and development by strengthening the Interagency 
     Committee on Disability Research;
       (4) to prioritize assistive technology research, 
     development, and dissemination efforts to match the needs of 
     the underserved assistive technology end-users such as older 
     and rural end-users;
       (5) to increase the use of universal design in the 
     commercial development of standard products;
       (6) to incorporate the principles of universal design in 
     the development of assistive technology;
       (7) to increase usage of the Small Business Innovative 
     Research Program as defined in section 9(e) of the Small 
     Business Act (15 U.S.C. 638(e));
       (8) to improve coordination between the Federal 
     laboratories and the members of the Interagency Committee on 
     Disability Research;
       (9) to improve the transfer of technology from mission-
     oriented applications in Federal laboratories to assistive 
     technology applications in research and development programs, 
     and to transfer prototype assistive technology products from 
     federally sponsored programs to the private sector;
       (10) to increase the availability of assistive technology 
     products and universally designed technology products in the 
     marketplace for the end-users; and
       (11) to create tax incentives and micro loans to assist 
     individuals with disabilities to obtain assistive technology 
     and universally designed technology in order to improve their 
     quality of life and to secure and maintain employment.

     SEC. 4. PEER REVIEW PROCESS.

       Title II of the Rehabilitation Act of 1973 (29 U.S.C. 761a 
     et seq.) is amended by adding at the end the following:

     ``SEC. 206. PEER REVIEW PROCESS.

       ``(a) Peer Review Panels.--
       ``(1) Composition.--
       ``(A) In general.--The Director shall establish a peer 
     review process, involving peer review panels composed of 
     members appointed by the Director, for the review of 
     applications for grants, contracts, or cooperative agreements 
     under this title for research and development of assistive 
     technology and universally designed technology.
       ``(B) Duration.--The members of such a peer review panel 
     shall serve for terms of 3 years, except that the members 
     initially appointed may serve for shorter terms.
       ``(C) Member terms.--Members of a peer review panel shall 
     serve staggered terms so as to provide for institutional 
     memory and experience at all times.
       ``(D) Selection and appointment.--
       ``(i) In general.--Members of peer review panels shall be 
     selected and appointed based upon their training and 
     experience in relevant scientific or technical fields, taking 
     into account, among other factors--

       ``(I) the level of formal scientific or technical education 
     completed or experience acquired by an individual;
       ``(II) the extent to which the individual has engaged in 
     relevant research, the capacities (such as principal 
     investigator or assistant) in which the individual has so 
     engaged, and the quality of such research;
       ``(III) the recognition of the individual, as reflected by 
     awards and other honors received from scientific and 
     professional organizations outside the Department of 
     Education; and
       ``(IV) the need for a panel to include experts from various 
     areas or specializations within the fields of assistive 
     technology and universally designed technology.

       ``(ii) Special rules.--To the extent practicable, the peer 
     review panels shall have, collectively, a significant number 
     of members who are individuals with disabilities, and the 
     members of the panels shall reflect the population of the 
     United States as a whole in terms of gender, race, and 
     ethnicity.
       ``(E) Officers and employees of the federal government.--
     Not more than \1/4\ of the members of any peer review panel 
     may be officers or employees of the Federal Government. For 
     purposes of the preceding sentence, an individual who is a 
     member of a peer review panel shall not, by virtue of such 
     service, be considered to be an officer or employee of the 
     Federal Government.
       ``(2) Conflict of interest.--
       ``(A) In general.--No member of a peer review panel may 
     participate in or be present during any review by the peer 
     review panel of an application for a grant, contract, or 
     cooperative agreement, in which, to the member's knowledge, 
     any of the following has a financial interest:
       ``(i) The member of the panel or the member's spouse, 
     parent, child, or business partner.
       ``(ii) Any organization with which the member or the 
     member's spouse, parent, child, or business partner is 
     negotiating or has any arrangement concerning employment or 
     any other similar association.
       ``(B) Disqualified panel.--In the event any member of a 
     peer review panel or the member's spouse, parent, child, or 
     business partner is currently, or is expected to be, the 
     principal investigator or a member of the staff responsible 
     for carrying out any research or development activities 
     described in an application for a grant, contract, or 
     cooperative agreement, the Secretary shall disqualify the 
     panel from reviewing the application and ensure that the 
     review will be conducted by another peer review panel with 
     the expertise to conduct the review. If there is no other 
     panel with the requisite expertise, the Secretary shall 
     ensure that the review will be conducted by an ad hoc panel 
     of members of the peer review panels, not more than 50 
     percent of whom may be from the disqualified panel.
       ``(C) Prohibition.--No member of a peer review panel may 
     participate in or be present during any review under this 
     title of a specific application for a grant, contract, or 
     cooperative agreement for an activity for which the member 
     has had or is expected to have any other responsibility or 
     involvement (either before or after the grant, contract, or 
     cooperative agreement was awarded for the activity) as an 
     officer or employee of the Federal Government.
       ``(3) Availability of information.--Transcripts, minutes, 
     and other documents made available to or prepared for or by a 
     peer review panel shall be available for public inspection 
     and copying to the extent provided in section 552 of title 5, 
     United States Code (commonly known as the `Freedom of 
     Information Act'), the Federal Advisory Committee Act (5 
     U.S.C. App.), and section 552a of title 5, United States Code 
     (commonly known as the `Privacy Act of 1974').
       ``(4) Evaluation of application.--A peer review panel 
     shall--
       ``(A) evaluate applications for grants, contracts, or 
     cooperative agreements under this title with respect to 
     research and development of assistive technology and 
     universally designed technology to assure duplication of such 
     research and development does not occur across Federal 
     departments and agencies; and
       ``(B) evaluate the applications with respect to meeting 
     immediate needs for research and development of assistive 
     technology and universally designed technology in the 
     disabled community (as identified in data collected by the 
     Interagency Committee on Disability Research), through 
     criteria that will ensure the effectiveness of the priorities 
     of the Interagency Committee for such research and 
     development.
       ``(5) Application review criteria.--In carrying out a 
     review of an application for a grant, contract, or 
     cooperative agreement with respect to research and 
     development of assistive technology or universally designed 
     technology under this section, the peer review panel, among 
     other factors, shall take into account--
       ``(A) the need for research and development of assistive 
     technology and universally designed technology that 
     facilitates individuals with disabilities obtaining 
     employment;
       ``(B) the need to allocate amounts of assistance through 
     grants, contracts, or cooperative agreements for research and 
     development of assistive technology and universally designed 
     technology in a manner proportionate to need for assistive 
     technology and universally designed technology, and 
     proportionate to the population of disability groups, 
     including individuals with physical disabilities, individuals 
     with cognitive disabilities, older individuals with 
     disabilities, and rural assistive technology and universally 
     designed technology end-users;
       ``(C) the significance and originality from a scientific or 
     technical standpoint of the goals of the proposed research 
     and development;
       ``(D) the adequacy of the methodology proposed to carry out 
     the research and development;
       ``(E) the qualifications and experience of the proposed 
     principal investigator and staff for the research and 
     development;
       ``(F) the reasonable availability of resources necessary to 
     the research and development;
       ``(G) the reasonableness of the proposed budget and the 
     duration in relation to the proposed research and 
     development;
       ``(H) if an application involves activities that may have 
     an adverse effect upon humans, animals, or the environment, 
     the adequacy of the proposed means for protecting against or 
     minimizing such effects;
       ``(I) the extent to which appropriate measures will be 
     taken to advance the cause of universal design through 
     proposed assistive technology research and development, 
     including the extent to which the applicant has reviewed a 
     variety of existing measures (as of the date of the review) 
     on the part of the designers and producers of assistive 
     technology and the providers of related services to produce 
     universally designed technology;
       ``(J) the extent to which efforts shall be made to include 
     small businesses in the proposed research and development of 
     assistive

[[Page S6410]]

     technology or universally designed technology through 
     increased usage of the Small Business Innovative Research 
     Program as defined in section 9(e) of the Small Business Act 
     (15 U.S.C. 638(e));
       ``(K) the extent to which the proposed research and 
     development of assistive technology or universally designed 
     technology will result in the production of actual products 
     for the marketplace for assistive technology or universally 
     designed technology end-users;
       ``(L) the extent to which the applicant identifies 
     secondary benefits or applications of the assistive 
     technology or universally designed technology involved, or 
     agrees to make matching contributions (in cash or in kind, 
     fairly evaluated) toward the cost of the research and 
     development, in partnership with representatives of industry, 
     government, and educational institutions; and
       ``(M) the extent to which proposed research and development 
     of universally designed technology will result in a change in 
     design of standard products, so that the products are more 
     usable by a broad range of individuals with disabilities or 
     older individuals.
       ``(6) Compensation.--Each member of a peer review panel who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the panel. All members of the panel who are officers or 
     employees of the Federal Government shall serve without 
     compensation in addition to compensation received for their 
     services as officers or employees of the Federal Government.
       ``(7) Travel expenses.--The members of the panel shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the panel.
       ``(8) Termination.--Section 14 of the Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to the peer 
     review panels.

     ``SEC. 207. DEFINITIONS.

       ``In this title:
       ``(1) Assistive technology.--The term `assistive 
     technology' means technology designed to be utilized in an 
     assistive technology device or assistive technology service.
       ``(2) Assistive technology and universally designed 
     technology end-user.--The term `assistive technology and 
     universally designed technology end-user' means any 
     individual with a disability who uses assistive technology or 
     universally designed technology to improve the quality of 
     life of the individual or to obtain employment, including an 
     individual with a physical disability, a cognitive 
     disability, or a sensory disability, or an older individual.
       ``(3) Technology transfer.--The term `technology transfer' 
     means the transmittal of developed ideas, products, and 
     techniques--
       ``(A) from a research environment to an environment of 
     practical application; or
       ``(B) from application in a prototype invention to mass 
     production in a commercial product.
       ``(4) Universal design.--The term `universal design' means 
     the design, development, fabrication, marketing, and 
     technical support of products, services, and environments 
     designed to be usable, to the greatest extent possible, by 
     the largest number of persons, including individuals with 
     disabilities and individuals without disabilities. No 
     product, service, or environment shall be considered to have 
     a universal design if use of the product, service, or 
     environment is substantially limited or prevented by reason 
     of--
       ``(A) a disability related to hearing, vision, learning, 
     strength, reach, or movement; or
       ``(B) the existence of any other limitation of a major life 
     function.''.

     SEC. 5. TECHNOLOGY TRANSFER.

       (a) Amendments to Provisions Relating to the Interagency 
     Committee on Disability Research.--Section 203 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 761b) is amended--
       (1) in subsection (a), by adding at the end the following:
       ``(3) Each member of the Committee shall attend all 
     meetings of the Committee or delegate the responsibility for 
     attending the meetings to a designee with the authority to 
     commit the department or agency represented to participate in 
     a joint project, the authority to comment on issues on behalf 
     of the department or agency, and the expertise to participate 
     in Committee discussions.'';
       (2) in subsection (b)--
       (A) by inserting ``(1)'' before ``After receiving''; and
       (B) by adding at the end the following:
       ``(2) The Committee shall--
       ``(A) monitor the range of research and development of 
     assistive technology and universally designed technology 
     carried out by the Federal departments and agencies 
     represented on the Committee;
       ``(B) ensure that the highest quality research and 
     development of assistive technology and universally designed 
     technology (through methods such as peer review) is carried 
     out by the departments and agencies;
       ``(C) identify and establish clear research priorities for 
     research and development of assistive technology and 
     universally designed technology that will benefit individuals 
     with disabilities, and permit joint ventures concerning 
     research and development of assistive technology and 
     universally designed technology among the department needs 
     and agencies;
       ``(D) ensure interagency collaboration and joint research 
     activities and reduce unnecessary duplication of effort by 
     the departments and agencies;
       ``(E) develop effective technology transfer activities for 
     the departments and agencies, including activities resulting 
     from increased supply of assistive technology and universally 
     designed technology or increased demand of assistive 
     technology and universally designed technology end-users;
       ``(F) help establish and maintain the use of consistent 
     definitions and terminologies among the departments and 
     agencies, which definitions shall contribute to the 
     production of comparable research and to the development of 
     reliable statistical data across departments and agencies;
       ``(G) optimize the productivity of the departments and 
     agencies through resource sharing and other cost-saving 
     activities;
       ``(H) identify gaps in needed research and development and 
     make efforts to ensure that the gaps are filled by a Federal 
     department or agency represented on the Committee; and
       ``(I) collaborate with member agencies on specific projects 
     that need additional funding beyond the capacity of 1 Federal 
     department or agency represented on the Committee.'';
       (3) by redesignating subsection (c) as subsection (d);
       (4) by inserting after subsection (b) the following:
       ``(c)(1) The Director shall establish special task forces 
     and subcommittees of the Committee for research and 
     development of assistive technology and universally designed 
     technology, including task forces and subcommittees related 
     to medical rehabilitation, technology (including universal 
     design), and the employment of individuals with disabilities.
       ``(2) The Director shall appoint 2 full-time staff members 
     to assist the Director in the operation of the Committee.'';
       (5) in subsection (d) (as redesignated by paragraph (3))--
       (A) by inserting ``(1)'' before ``The Committee''; and
       (B) by adding at the end the following:
       ``(2) The Director shall issue a biannual report announcing 
     the availability of the grants, contracts, or cooperative 
     agreements made available through Federal departments and 
     agencies represented on the Committee for research and 
     development of assistive technology and universally designed 
     technology.
       ``(3) The Director shall submit to the Commissioner for 
     inclusion in the annual report to Congress described in 
     section 13--
       ``(A) the results and an analysis of the activities 
     conducted under grants, contracts, or cooperative agreements 
     awarded by departments and agencies represented on the 
     Interagency Committee on Disability Research for research and 
     development of assistive technology and universally designed 
     technology;
       ``(B) a detailed summary of the activities and the 
     effectiveness of the Committee in expanding research 
     opportunities that lead to direct development of assistive 
     technology devices and assistive technology services; and
       ``(C) results of periodic surveys of manufacturers and 
     suppliers of assistive technology and universally designed 
     technology, and of assistive technology and universally 
     designed technology end-users.''.
       (b) Amendments to the Stevenson-Wydler Technology 
     Innovation Act of 1980.--Section 11(e) of the Stevenson-
     Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710(e)) 
     is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (I), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (J), by striking the period and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(K) develop and disseminate, including through accessible 
     electronic formats, to all Federal, State, and local agencies 
     and instrumentalities involved in assistive technology and 
     universally designed technology, in order to maximize 
     research and development of assistive technology and 
     universally designed technology, information that indicates--
       ``(i) the extent of all activities undertaken by the 
     Federal laboratories in the previous year having an intended 
     or a recognized potential impact upon individuals with 
     disabilities;
       ``(ii) the degree to which ongoing or projected activities 
     of the Federal laboratories are expected to have an impact 
     upon the available range of, or applications for, assistive 
     technology and universally designed technology;
       ``(iii) the extent to which expert resources within the 
     Consortium are made available or can be accessed for the 
     purpose of meeting needs related to assistive technology and 
     universally designed technology in the communities where the 
     Federal laboratories operate; and
       ``(iv) the extent to which each Federal laboratory has 
     attempted to involve, and succeeded in involving, individuals 
     with disabilities in the development of priorities, plans, 
     and prototypes with respect to assistive

[[Page S6411]]

     technology and universally designed technology.''; and
       (2) by adding at the end the following:
       ``(8)(A) The Director of the National Institute on 
     Disability and Rehabilitation Research shall participate 
     annually in the national meeting and interagency meeting of 
     the Consortium.
       ``(B) The Director, in collaboration with other members of 
     the Interagency Committee on Disability Research, where 
     appropriate, shall coordinate the activities of the Federal 
     laboratories, with respect to research and development of 
     assistive technology and universally designed technology.
       ``(C) In conjunction with members of the Interagency 
     Committee on Disability Research, the Director shall utilize 
     the resources of the Consortium to identify potential public 
     and private sector partners for research and development 
     collaboration regarding assistive technology and universally 
     designed technology.
       ``(9) In this section:
       ``(A) The terms `individual with a disability' and 
     `individuals with disabilities' have the meanings given the 
     terms in section 3 of the Technology-Related Assistance for 
     Individuals With Disabilities Act of 1988 (29 U.S.C. 2202).
       ``(B) The terms `universal design' and `assistive 
     technology' have the meaning given the term in section 207 of 
     the Rehabilitation Act of 1973.''.

     SEC. 6. MICRO LOANS.

       (a) Territories.--Section 301 of the Technology-Related 
     Assistance for Individuals With Disabilities Act of 1988 (29 
     U.S.C. 2281) is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following:
       ``(b) Award Basis.--The Secretary shall award grants to 
     States under this section on the basis of the population of 
     the States.''.
       (b) Mechanisms.--Subsection (d) of section 301 of the 
     Technology-Related Assistance for Individuals With 
     Disabilities Act of 1988 (as redesignated by subsection 
     (a)(1)) is amended to read as follows:
       ``(c) Mechanisms.--
       ``(1) In general.--The alternative financing mechanisms 
     shall include--
       ``(A) an interest buy-down loan program;
       ``(B) a revolving loan fund program; or
       ``(C) a loan guarantee program.
       ``(2) Requirements.--Each program described in paragraph 
     (1) shall--
       ``(A) provide assistance for assistive technology devices, 
     assistive technology services, and universally designed 
     technology products and services; and
       ``(B) maximize consumer participation in all aspects of the 
     program.
       ``(3) Definitions.--
       ``(A) Interest buy-down loan program.--The term `interest 
     buy-down loan program' means a loan program that involves an 
     organization, using the organization's funds, to reduce the 
     interest rate of a loan made by a lending institution to a 
     borrower.
       ``(B) Loan guarantee program.--The term `loan guarantee 
     program' means a loan program that provides loans that are 
     backed by a promise or guarantee that, if there is a default 
     on a loan made under the program, the loan will be paid back.
       ``(C) Revolving loan fund program.--The term `revolving 
     loan fund program' means a loan program in which individuals 
     borrow money from a loan fund, loan repayments are dedicated 
     to the recapitalization of the loan fund, and the repayments 
     are used to make additional loans.''.
       (c) Authorization of Appropriations.--Section 308(a) of the 
     Technology-Related Assistance for Individuals With 
     Disabilities Act of 1988 (29 U.S.C. 2288(a)) is amended by 
     striking ``this title'' and all that follows and inserting 
     ``this title, such sums as may be necessary for each of 
     fiscal years 1999 through 2001.''.

     SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       Section 201(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
     761(a)) is amended to read as follows:
       ``(a) There are authorized to be appropriated--
       ``(1) such sums as may be necessary for each of fiscal 
     years 1999 through 2001, for the purpose of providing for the 
     expenses of the National Institute on Disability and 
     Rehabilitation Research under section 202, which--
       ``(A) shall include the expenses of the Interagency 
     Committee on Disability Research under section 203, the 
     Rehabilitation Research Advisory Council under section 205, 
     and the peer review panels under section 206; and
       ``(B) shall not include the expenses of such Institute to 
     carry out section 204; and
       ``(2)(A) such sums as may be necessary for each of fiscal 
     years 1999 through 2001 to carry out section 204, including 
     providing financial assistance for research and development 
     on assistive technology and universally designed technology 
     at the level of assistance provided for fiscal year 1998; and
       ``(B) $10,000,000 for each of fiscal years 1999 through 
     2001, to provide, under section 204, such financial 
     assistance (in addition to the level of assistance provided 
     for fiscal year 1998).''.
                                  ____


                           Amendment No. 2708

       At the end of the bill add the following:

     SEC. 8. TAX INCENTIVES FOR ASSISTIVE TECHNOLOGY.

       (a) Assistive Technology Development Business Tax Credit.--
       (1) In general.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     business related credits) is amended by adding at the end the 
     following:

     ``SEC. 45D. CREDIT FOR ASSISTIVE TECHNOLOGY.

       ``(a) General Rule.--For purposes of section 38, the 
     assistive technology credit of any taxpayer for any taxable 
     year is an amount equal to so much of the qualified assistive 
     technology expenses paid or incurred by the taxpayer during 
     such year as does not exceed $100,000.
       ``(b) Qualified Assistive Technology Expenses.--For 
     purposes of this section--
       ``(1) In general.--The term `qualified assistive technology 
     expenses' means expenses for the design, development, and 
     fabrication of assistive technology devices.
       ``(2) Assistive technology device.--The term `assistive 
     technology device' means any item, piece of equipment, or 
     product system, including any item acquired commercially off 
     the shelf and modified or customized by the taxpayer, that is 
     used to increase, maintain, or improve functional 
     capabilities of individuals with disabilities.
       ``(3) Individuals with disabilities.--The term `individuals 
     with disabilities'' has the meaning given the term by section 
     3 of the Technology Related Assistance for Individuals with 
     Disabilities Act of 1988 (29 U.S.C. 2202).
       ``(c) No Double Benefit.--Any amount taken into account 
     under section 41 may not be taken into account under this 
     section.
       ``(d) Termination.--This section shall not apply to any 
     amount paid or incurred after December 31, 2003.''.
       (2) Credit treated as business credit.--Section 38(b) of 
     the Internal Revenue Code of 1986 (relating to current year 
     business credit) is amended by striking ``plus'' at the end 
     of paragraph (11), by striking the period at the end of 
     paragraph (12) and inserting ``, plus'', and by adding at the 
     end the following:
       ``(13) the assistive technology credit determined under 
     section 45D(a).''.
       (3) Transitional rule.--Section 39(d) of the Internal 
     Revenue Code of 1986 (relating to transitional rules) is 
     amended by adding at the end the following:
       ``(9) No carryback of section 45D credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the assistive 
     technology credit determined under section 45D(a) may be 
     carried back to a taxable year ending before January 1, 
     1999.''.
       (4) Clerical amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following:

``Sec. 45D. Credit for assistive technology.''.
       (5) Evaluation of effectiveness of credit.--The Secretary 
     of the Treasury shall evaluate the effectiveness of the 
     assistive technology credit under section 45D of the Internal 
     Revenue Code of 1986, as added by this subsection, and report 
     to the Congress the results of such evaluation not later than 
     January 1, 2003.
       (b) Expansion of Architectural and Transportation Barrier 
     Removal Deduction.--
       (1) In general.--Section 190 of the Internal Revenue Code 
     of 1986 is amended--
       (A) by inserting ``and qualified communications barrier 
     removal expenses'' after ``removal expenses'' in subsections 
     (a)(1),
       (B) by adding at the end of subsection (b) the following:
       ``(4) Qualified communications barrier removal expenses.--
       ``(A) In general.--The term `qualified communications 
     barrier removal expense' means a communications barrier 
     removal expense with respect to which the taxpayer 
     establishes, to the satisfaction of the Secretary, that the 
     resulting removal of any such barrier meets the standards 
     promulgated by the Secretary and set forth in regulations 
     prescribed by the Secretary. Such term shall not include the 
     costs of general communications system upgrades or periodic 
     replacements that do not heighten accessibility as the 
     primary purpose and result of such replacements.
       ``(B) Communications barrier removal expenses.--The term 
     `communications barrier removal expense' means an expenditure 
     for the purpose of identifying and implementing alternative 
     technologies or strategies to remove those features of the 
     physical, information-processing, telecommunications 
     equipment or other technologies that limit the ability of 
     handicap individuals to obtain, process, retrieve, or 
     disseminate information that nonhandicapped individuals in 
     the same or similar setting would ordinarily be expected and 
     be able to obtain, retrieve, manipulate, or disseminate.'', 
     and
       (C) by striking ``and transportation'' in the heading and 
     inserting ``, transportation, and communications''.
       (2) Conforming amendment.--The item relating to section 190 
     in the table of sections for part VI of subchapter B of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     striking ``and transportation'' and inserting ``, 
     transportation, and communications''.
       (c) Expansion of Work Opportunity Credit.--Section 51(c) of 
     the Internal Revenue Code of 1986 (defining wages) is amended 
     by redesignating paragraph (4) as paragraph (5) and by 
     inserting after paragraph (3) the following:
       ``(4) Assistive technology expenses.--

[[Page S6412]]

       ``(A) In general.--The term `wages' includes expenses 
     incurred in the acquisition and use of technology--
       ``(i) to facilitate the employment of any individual, 
     including a vocational rehabilitation referral; or
       ``(ii) to provide a reasonable accommodation for any 
     employee who is a qualified individual with a disability, as 
     such terms are defined in section 101 of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12111).
       ``(B) Regulations.--The Secretary shall by regulation 
     provide rules for allocating expenses described in 
     subparagraph (A) among individuals employed by the 
     employer.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.
                                  ____



                             Association of Tech Act Projects,

                                    Springfield, IL, June 5, 1998.
     Hon. Christopher S. Bond,
     U.S. Senate, Russell Building, Washington, DC.
       Dear Senator Bond: On behalf of the Association of 
     Technology Act Projects (ATAP), we are writing to express our 
     sincere appreciation for your interest in making new and 
     emerging technologies available to people with disabilities 
     throughout the nation.
       ``The Assistive and Universally Designed Technology 
     Improvement Act for Individuals with Disabilities'', the 
     legislation you are introducing today, would expand federal 
     support for much needed research and development in this 
     field. ATAP looks forward to working closely with you and 
     your staff as this legislation is considered by the Senate 
     Committee on Labor and Human Resources. We believe the 
     projects funded under the Tech Act that have enjoyed federal 
     support, provide a critical linkage among consumers and 
     service providers. ATAP members share your belief in the 
     power of technology to improve the functional capabilities of 
     individuals with disabilities.
       ATAP congratulates you on the introduction of this 
     important legislation and offers our support to your effort 
     to expand the federal investment in assistive technology 
     research and development.
           Sincerely,
                                                  Deborah V. Buck,
                                                    ATAP Co-Chair.
                                                  Lynne Cleveland,
     ATAP Co-Chair.
                                  ____



                                               United Cerebral

                                           Palsy Associations,

                                     Washington, DC, June 8, 1998.
       Dear Senator Bond: On behalf of United Cerebral Palsy 
     Associations and our 151 affiliates, we strongly endorse the 
     Assistive and Universally Designed Technology Improvement Act 
     for Individuals with Disabilities (UCPA) with general 
     reservation around the legislative directive on peer review 
     which was expressed in our June 5 comments. In particular, we 
     applaud your interest in micro tax incentives for assistive 
     technology, and AT research, development, and dissemination.
       UCPA has enjoyed working with your staff through this 
     process. Thank you for the opportunity to comment on the 
     legislation. UCPA believes that this bill will complement the 
     anticipated assistive technology bill expected out of the 
     Senate Labor and Human Resources Committee. UCPA looks 
     forward to working with you and your staff in this effort to 
     bring assistive technology to the forefront.
           Sincerely,
                                                     Peter Keiser,
     Chair, Community Services Committee.
                                  ____

                                     National Easter Seal Society,


                                     Office of Public Affairs,

                                     Washington, DC, June 9, 1998.
     Hon. Christopher S. Bond,
     U.S. Senate, Russell Building,
     Washington, DC
       Dear Senator Bond: On behalf of National Easter Seals, I 
     would like to thank you for the opportunity to review the 
     ``Assistive and Universally Designed Technology Improvement 
     Act for Individuals with Disabilities.'' Your leadership in 
     addressing the serious issue of access to assistive 
     technology for people with disabilities is greatly 
     appreciated and we look forward to working with you on 
     furthering the aims of the bill as it moves through the 
     Senate Labor and Human Resources committee.
       Particularly notable are your efforts to develop a national 
     loan fund to assure that more people with disabilities have 
     access to the technologies they need to reach goals of 
     equality, dignity and independence. There is a growing 
     population of people with disabilities who may not qualify 
     for federal support, but nonetheless need some assistance in 
     purchasing, maintaining and upgrading their assistive 
     technology.
       The proposals in your bill will serve to improve the 
     quality of life for people with disabilities. Your leadership 
     and enthusiasm are greatly appreciated, and Easter Seals 
     looks forward to working with you on this initiative and in 
     the future.
           Sincerely,
                                                  Jennifer Dexter,
                                  Government Relations Specialist.
                                 ______
                                 
      By Mr. CRAIG:
  S. 2175. A bill to safeguard the privacy of certain identification 
records and name checks, and for other purposes; to the Committee on 
the Judiciary.


                   firearms owner privacy act of 1998

  Mr. CRAIG. Mr. President, I rise to introduce the Firearms Owner 
Privacy Act of 1998. This bill is aimed at safeguarding the privacy of 
law-abiding citizens who choose to purchase firearms and therefore 
undergo the instant background check mandated by the Brady Act.
  As many of my colleagues know, the National Instant Criminal 
Background Check System (NICS) is scheduled to go online on November 
30, 1998. After that date, federally-licensed firearms dealers are 
required to contact NICS before they sell any handgun or long gun, so 
that a records check can be performed to determine whether the 
purchaser is prohibited by law from receiving the firearm.
  A unique identification number will be assigned by the NICS to each 
search request in order to identify the transaction. That number is to 
be kept by the dealer. However, if the sale is approved--that is, if 
the purchaser is not disqualified from purchasing the firearm--all 
other records pertaining to that sale are to be destroyed.
  This only makes sense. The Brady Act was never aimed at generating 
records concerning legal firearms sales. It was promoted as a law 
enforcement tool--a tool to prevent illegal gun sales and prosecute 
convicted felons or other disqualified persons who attempt to obtain 
firearms illegally.
  More important, Senators who participated in the debate on the Brady 
bill will remember the concerns that were raised about the federal 
government retaining records of approved, legal transactions. Simply 
put, keeping those records is tantamount to registering firearms--
something that is far from acceptable to most Americans, not to mention 
most members of Congress and certainly to this Senator. The federal 
government has no legitimate reason for keeping track of which 
Americans own guns. On the contrary, history teaches us that gun 
registration schemes have been used to pave the way for gun 
confiscation. It is not unreasonable for citizens to be skeptical of 
the government's self-restraint--indeed, that is why our Founders built 
checks and balances into our system of government in the first place.
  In fashioning the Brady Act, Congress did not rely on government 
promises not to compile information on law-abiding gun purchasers. 
Instead, the law expressly prohibits the federal government from using 
NICS to establish any system for registering firearms, firearm owners, 
or transactions involving firearms. It also prevents a de facto 
registration system by specifically prohibiting the federal government 
from recording or keeping the records generated by the instant 
background check.
  Again and again during debate on this measure, members of the House 
and Senate raised concerns about the privacy interests of law-abiding 
citizens. Again and again, we were assured that these prohibitions 
would prevent the Brady Act from establishing or promoting any kind of 
gun registration for law-abiding citizens. Clearly, one of the keys to 
passing the Brady bill was the absolute assurance that the privacy of 
law-abiding citizens would be respected, and records of their firearms 
transactions would be destroyed.
  It is worth noting that since enactment of the Brady law, the concern 
over its potential for promoting gun registration has continued to 
boil. Like many of our colleagues, I continue to hear from people in my 
state and around the nation who do not believe this Administration--no 
friend to law-abiding gun owners--can resist the opportunity to mis-use 
and abuse the records generated during these background checks.
  Mr. President, the Administration just turned up the heat on those 
boiling fears. Now that we are within months of putting NICS on line, 
federal agencies are beginning to release the details of how the system 
is expected to work. My telephones are beginning to ring as firearms 
dealers, gun collectors, and sportspeople have an opportunity to read 
the fine print. Among the proposals that concern them the most is that 
the agency operating NICS intends to keep records of approved firearms 
transactions for eighteen months.

[[Page S6413]]

  That's right. The federal government proposes to keep records of 
legal, approved transactions for a year and a half.
  The agency has explained that it needs to keep the records for 
auditing purposes, to make sure the system is working properly and not 
being abused. Mr. President, why in the world do they need a year and a 
half for that purpose? Furthermore, the longer these records sit 
around, the more potential there is for abuse. How can the agency 
justify allowing its own administrative convenience to outweigh the 
serious privacy and civil liberties concerns raised against retaining 
such records?
  Let's not forget that under the current, interim system, records of 
an approved transaction are destroyed within twenty days. The NICS 
system is supposed to speed up the entire background check process so 
that the average contact will take minutes. Even if additional time is 
required because of problems with the check, the transaction is allowed 
to go forward within a mere three days, if the dealer does not receive 
a disapproval. The acceleration in every other part of the NICS system 
makes this records retention proposal even more incredible.
  I am wholly unconvinced that the agency has any legitimate purpose 
for retaining the records of lawful purchases by qualified citizens as 
it has proposed. The bill I am introducing today, the Firearms Owner 
Privacy Act of 1998, simply reinforces the decision that this Congress 
originally made on this critical issue. It would require information 
generated by the system on approved, lawful purchases to be destroyed 
within twenty-four hours. An individual who knowingly retained or 
transferred that information after that time would face criminal 
penalties of up to $250,000 or up to ten years' imprisonment.
  My bill also deals with transactions that are disapproved because a 
would-be purchaser is prohibited by federal or state law from receiving 
a firearm. For those transactions, the bill would permit the agency to 
retain the records for five years. If a criminal prosecution has been 
commenced against the purchaser, there would be no restriction at all 
on the agency's retention of the records. These provisions are aimed at 
insuring that if our law enforcement agencies intend to pursue a 
disapproved sale, they have ample opportunity to do so. However, the 
usefulness of these records past five years is very questionable.
  Mr. President, I believe my bill imposes reasonable, workable limits 
that conform to Congressional intent. If someone knows a legitimate 
reason why the federal government should keep these records longer than 
my bill allows, I am certainly willing to listen to their arguments. To 
date, however, the explanations from the Administration have been 
unpersuasive at best.
  Let me point out that a similar effort to limit the retention of 
these records is underway in the other body, headed by Representative 
Bob Barr. I hope my colleagues will join me in this effort to protect 
the privacy and civil liberties of law-abiding citizens.
  I ask unanimous consent that a copy of the Firearms Owner Privacy Act 
of 1998 be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2175

       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 ``Firearms Owner Privacy Act 
     of 1998''.

     SEC. 2. UNLAWFUL RETENTION OF FIREARMS TRANSFER INFORMATION.

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

     ``Sec. 1925. Unlawful retention of federal firearms transfer 
       information

       (a) Definitions..--In this section--
       ``(1) the term `firearm' has the same meaning as in section 
     921(a);
       ``(2) the term `instant check information'--
       ``(A) means any information--
       ``(i) provided to the instant check system about an 
     individual seeking to obtain a firearm; or
       ``(ii) derived from any information provided as described 
     in clause (i); and
       ``(B) does not include any unique identification number 
     provided by the instant check system pursuant to section 
     922(t)(1)(B)(i), or the date on which that number is 
     provided; and
       ``(3) the term `instant check system' means the national 
     instant criminal background check system established under 
     section 103 of the Brady Handgun Violence Prevention Act (18 
     U.S.C. 922 note).
       ``(b) Prohibitions and Penalties.--
       ``(1) Information relating to individuals not prohibited 
     from receiving a firearm.--Whoever, being an officer, 
     employee, contractor, consultant, or agent of the United 
     States, including a State or local employee or officer acting 
     on behalf of the United States, in that capacity--
       ``(A) receives instant check information, in any form or 
     through any medium, about an individual who is determined, 
     through the use of the instant check system, not to be 
     prohibited by subsection (g) or (n) of section 922, or by 
     State law, from receiving a firearm; and
       ``(B) knowingly retains or transfers to another person that 
     information after the 24-hour period beginning with such 
     receipt;

     shall be fined not more than $250,000, imprisoned not more 
     than 10 years, or both.
       ``(2) Information relating to individuals prohibited by law 
     from receiving a firearm.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     whoever, being an officer, employee, contractor, consultant, 
     or agent of the United States, including a State or local 
     employee or officer acting on behalf of the United States, in 
     that capacity--
       ``(i) receives instant check information, in any form or 
     through any medium, about an individual who is prohibited by 
     Federal or State law from receiving a firearm; and
       ``(ii) knowingly retains or transfers to another person 
     that information after the 5-year period beginning with such 
     receipt;

     shall be fined not more than $250,000, imprisoned not more 
     than 10 years, or both.
       ``(B) Inapplicability to information relating to certain 
     individuals.--Subparagraph (A) does not apply to any 
     information about an individual if a criminal prosecution has 
     been commenced against the individual on the basis of that 
     information.''.
       (b) Clerical Amendment.--The analysis for chapter 93 of 
     title 18, United States Code, is amended by adding at the end 
     the following:
``1925. Unlawful retention of Federal firearms transfer information.''.

     SEC. 3. EFFECTIVE DATE.

       The amendments made by this Act shall take effect on 
     November 30, 1998.
                                 ______
                                 
      By Mr. THOMPSON (for himself, Mr. Byrd, Mr. Thurmond, Mr. Lott, 
        and Mr. Roth):
  S. 2176. A bill to amend sections 3345 through 3349 of title 5, 
United States Code (commonly referred to as the ``Vacancies Act'' to 
clarify statutory requirements relating to vacancies in and 
appointments to certain Federal offices, and for other purposes; to the 
Committee on Governmental Affairs.


                  federal vacancies reform act of 1998

  Mr. THOMPSON. Mr. President, on behalf of myself and a bipartisan 
group of senators, I introduce today the Federal Vacancies Reform Act 
of 1998. This legislation is needed to preserve one of the Senate's 
most important powers: the duty to advise and consent on presidential 
nominees.

  The Framers of the Constitution established a procedure for the 
appointment of all government officers: they were to be nominated by 
the President and confirmed by the Senate, unless Congress decided that 
the appointment of specified inferior officers was to be made by the 
President alone, the courts, or by department heads. The First 
Congress, however, recognized that vacancies would arise in executive 
positions, and enacted legislation providing for officials to 
temporarily exercise the powers of an office even without Senate 
confirmation. The law was adopted essentially in its current form in 
1868, and was last amended in 1988. As amended, the first assistant or 
another Senate-confirmed individual can serve for 120 days after the 
vacancy, and, in addition, may serve beyond those 120 days if the 
President submits a nomination for that office to the Senate within 
those 120 days.
  Unfortunately, the Vacancies Act is honored more in the breach than 
in the observance. For the past 25 years, administrations of both 
parties have claimed that the Justice Department is exempt from the 
Vacancies Act. And since the Reagan Administration, other departments, 
at the behest of the Justice Department, make the same argument, 
purportedly based on the authority of the heads of each of the 
executive departments to delegate their authority to other department 
personnel. Following this argument to its logical end, none of the 
departments is bound by the Vacancies Act, so that the act is a dead 
letter.
  Certainly, this Administration has conducted itself as if the 
Vacancies Act applies to none of the departments. Each department has 
at least one temporary officer who has served more

[[Page S6414]]

than 120 days before any nomination was sent to the Senate. Of the 320 
executive department advise and consent positions, 64 are held by 
temporary officials. Of the 64, 43 have served longer than 120 days 
before any nomination was submitted to the Congress. The Commerce 
Department is the worst offender in number and in degree. For instance, 
the acting head of the Census Bureau is neither the first assistant nor 
a person who has been confirmed by the Senate, a mind-boggling 
violation of the law. Nor has a nomination been made, although the 
prior Census chief announced her departure more than five months ago.
  The government's important functions should be carried out by 
permanent officials. That means that the President must submit 
nominations and the Senate needs to provide its advice and consent. 
This administration seems not to want to subject its appointees to such 
scrutiny. Acting on that desire is unconstitutional and a violation of 
the Vacancies Act as well. The Appointments Clause is not a technical 
nicety. As the Supreme Court has stated, the Appointments Clause is 
designed to keep the Executive and Legislative Branches within their 
appropriate spheres, so as to better preserve individual liberty.
  The Governmental Affairs Committee recently held an oversight hearing 
on the Vacancies Act. In that hearing, it became apparent that the 
Administration was regularly acting in violation of the law, but faced 
no consequence for its actions. The Committee also heard testimony from 
Senators Byrd and Thurmond, who had each introduced bills designed to 
ensure compliance with the Vacancies Act through clarifying the scope 
of agencies covered and providing an enforcement mechanism. Our 
colleagues owe a debt of gratitude to Senators Byrd and Thurmond for 
raising these important issues and offering solutions to address them.
  I have found the approaches in the Byrd and Thurmond bills to have 
contributed importantly to the drafting of the legislation I introduce 
today. It is extremely important to ensure that the Vacancy Act period 
run from the date of the vacancy, to clarify that it covers all 
departments, and to impose a sanction for noncompliance. Subsequent to 
the introduction of the Byrd and Thurmond bills, the United States 
Court of Appeals for the District of Columbia Circuit issued a decision 
on the meaning of the Vacancies Act, approving the four year service of 
an acting head of the Office of Thrift Supervision as appointed by the 
departing head of the agency. Overruling several portions of that 
decision have become a priority.
  The legislation I introduce today provides that in the event of a 
vacancy in a position in an executive agency requiring the advice and 
consent of the Senate, the officer's first assistant is allowed to 
perform the functions and duties of the office on an acting basis, for 
up to 150 days. Under current law, the period is 120 days, but the 
vicissitudes of the modern vetting process appear to require that the 
time be lengthened, to my regret. Alternatively, the President may 
direct another person who has already received Senate confirmation to 
serve as the acting official for 150 days. To prevent these 
restrictions from being gamed, the bill provides that the acting 
officer must have been the first assistant for 180 of the 365 days 
preceding the vacancy.
  The length of temporary service can be extended beyond the 150 days 
if the President submits a nomination to the Senate for the vacant 
position. If the nomination is withdrawn, or if the Senate rejects or 
returns it, the acting official can serve only for 150 days after that 
event.
  The bill makes clear that the Vacancies Act applies to all offices in 
executive agencies for which appointment is required to be made by the 
President by and with the advice and consent of the President. 
Nonetheless, we do not write on a clean slate. There are a number of 
laws already on the books that provide a process by which persons can 
serve as acting officers when particular offices are vacant. In most 
instances, these officials can serve until a successor is confirmed, 
without regard to the Vacancies Act. The bill preserves those specific 
statutes, but, to clearly reject the position of the Justice 
Department, it expressly repudiates the contention that a law 
authorizing the head of a department to delegate or reassign duties 
among other officers is a statute that provides for the temporary 
filling of a specific office. For the future, Congress will have to 
expressly provide that it is superseding the Vacancies Act if it wishes 
to override the Vacancies Act as to the temporary filling of advise and 
consent provisions.

  The bill also establishes a second enforcement mechanism. If a 
nominee is not submitted to the Senate within 150 days of the vacancy, 
then the office is vacant until a nominee is submitted. While the 
routine functions of the office would be allowed to continue, those 
functions and duties that are specified to be performed by that 
official could only be performed by the head of the department. In 
fact, no specified duty of the officeholder that existed by regulation 
for the 180 days preceding the vacancy could be diminished in an effort 
to avoid the bill's vacant office provisions. However, if the President 
submits a nomination at any point after the 150 days, the acting 
officer would again be allowed to serve while the nomination was 
pending in the Senate, until confirmation, or until 150 days after the 
rejection, withdrawal, or return of the nomination. Actions taken by 
any acting official in violation of these provisions would be of no 
effect, and no one would be permitted to ratify the actions of the 
acting official that were taken in violation of the vacant office 
provisions.
  Enforcement is further enhanced by requiring each executive agency to 
report to the Comptroller General the existence of vacancies, the names 
of persons serving as acting officers and when such service began, the 
name of any nominee and when such nomination was submitted to the 
Senate, and the final disposition of the nomination. The Comptroller 
General will then notify the Congress, the President, and the Office of 
Personnel Management when the 150 day limitations have been reached.
  Mr. President, the Framers established a system for appointing 
important officials in which the President and the Senate would each 
play a role. Not only did the Framers wish to ensure that more than one 
person's wisdom was brought to the appointment process, but that the 
President, in selecting nominees, would be aware that they would face 
scrutiny. When a vacancy occurs in such an office, it is important to 
establish a process that permits the routine operation of the 
government to continue, but that will not allow the evasion of the 
Senate's constitutional authority to advise and consent to nominations. 
I am pleased that a number of my colleagues are joining with me to 
formulate a structure that will achieve these ends. I look forward to 
the Senate's passage of this legislation in the near future.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2176

       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 ``Federal Vacancies Reform Act 
     of 1998''.

     SEC. 2. FEDERAL VACANCIES AND APPOINTMENTS.

       (a) In General.--Chapter 33 of title 5, United States Code, 
     is amended by striking sections 3345 through 3349 and 
     inserting the following:

     ``Sec. 3345. Acting officer

       ``(a) If an officer of an Executive agency (including the 
     Executive Office of the President, and other than the General 
     Accounting Office) whose appointment to office is required to 
     be made by the President, by and with the advice and consent 
     of the Senate, dies, resigns, or is otherwise unable to 
     perform the functions and duties of the office--
       ``(1) the first assistant of such officer shall perform the 
     functions and duties of the office temporarily in an acting 
     capacity, subject to the time limitations of section 3346; or
       ``(2) notwithstanding paragraph (1), the President (and 
     only the President) may direct a person who serves in an 
     office for which appointment is required to be made by the 
     President, by and with the advice and consent of the Senate, 
     to perform the functions and duties of the office temporarily 
     in an acting capacity, subject to the time limitations of 
     section 3346.
       ``(b) Notwithstanding section 3346(a)(2), a person may not 
     serve as an acting officer for an office under this section, 
     if--
       ``(1) on the date of the death, resignation, or beginning 
     of inability to serve of the applicable officer, such person 
     serves in the position of first assistant to such officer;

[[Page S6415]]

       ``(2) during the 365-day period preceding such date, such 
     person served in the position of first assistant to such 
     officer for less than 180 days; and
       ``(3) the President submits a nomination of such person to 
     the Senate for appointment to such office.
       ``(c) With respect to the office of the Attorney General of 
     the United States, the provisions of section 508 of title 28 
     shall be applicable.

     ``Sec. 3346. Time limitation

       ``(a) The person serving as an acting officer as described 
     under section 3345 may serve in the office--
       ``(1) for no longer than 150 days beginning on the date the 
     vacancy occurs; or
       ``(2) subject to subsection (b), once a first or second 
     nomination for the office is submitted to the Senate, for the 
     period that the nomination is pending in the Senate.
       ``(b)(1) If the first nomination for the office is rejected 
     by the Senate, withdrawn, or returned to the President by the 
     Senate, the person may continue to serve as the acting 
     officer for no more than 150 days after the date of such 
     rejection, withdrawal, or return.
       ``(2) If a second nomination for the office (of a different 
     person than first nominated in the case of a rejection or 
     withdrawal) is submitted to the Senate during the 150-day 
     period after the rejection, withdrawal, or return of the 
     first nomination, the person serving as the acting officer 
     may continue to serve--
       ``(A) until the second nomination is confirmed; or
       ``(B) for no more than 150 days after the second nomination 
     is rejected, withdrawn, or returned.
       ``(c) If a person begins serving as an acting officer 
     during an adjournment of the Congress sine die, the 150-day 
     period under subsection (a) shall begin on the date that the 
     Senate first reconvenes.

     ``Sec. 3347. Application

       ``(a) Sections 3345 and 3346 are applicable to any office 
     of an Executive agency (including the Executive Office of the 
     President, and other than the General Accounting Office) for 
     which appointment is required to be made by the President, by 
     and with the advice and consent of the Senate, unless--
       ``(1) another statutory provision expressly provides that 
     such provision supersedes sections 3345 and 3346;
       ``(2) a statutory provision in effect on the date of 
     enactment of the Federal Vacancies Reform Act of 1998 
     expressly authorizes the President, or the head of an 
     Executive department, to designate an officer to perform the 
     functions and duties of a specified office temporarily in an 
     acting capacity; or
       ``(3) the President makes an appointment to fill a vacancy 
     in such office during the recess of the Senate pursuant to 
     clause 3 of section 2 of article II of the United States 
     Constitution.
       ``(b) Any statutory provision providing general authority 
     to the head of an Executive agency (including the Executive 
     Office of the President, and other than the General 
     Accounting Office) to delegate duties to, or to reassign 
     duties among, officers or employees of such Executive agency, 
     is not a statutory provision to which subsection (a)(2) 
     applies.

     ``Sec. 3348. Vacant office

       ``(a) In this section--
       ``(1) the term `action' includes any agency action as 
     defined under section 551(13); and
       ``(2) the term `function or duty' means any function or 
     duty of the applicable office that--
       ``(A)(i) is established by statute; and
       ``(ii) is required by statute to be performed by the 
     applicable officer (and only that officer); or
       ``(B)(i)(I) is established by regulation; and
       ``(II) is required by such regulation to be performed by 
     the applicable officer (and only that officer); and
       ``(ii) includes a function or duty to which clause (i) (I) 
     and (II) applies, and the applicable regulation is in effect 
     at any time during the 180-day period preceding the date on 
     which the vacancy occurs, notwithstanding any regulation 
     that--
       ``(I) is issued on or after the date occurring 180 days 
     before the date on which the vacancy occurs; and
       ``(II) limits any function or duty required to be performed 
     by the applicable officer (and only that officer).
       ``(b) Subject to section 3347 and subsection (c)--
       ``(1) if the President does not submit a first nomination 
     to the Senate to fill a vacant office within 150 days after 
     the date on which a vacancy occurs--
       ``(A) the office shall remain vacant until the President 
     submits a first nomination to the Senate; and
       ``(B) in the case of an office other than the office of the 
     head of an Executive agency (including the Executive Office 
     of the President, and other than the General Accounting 
     Office), only the head of such Executive agency may perform 
     any function or duty of such office, until a nomination is 
     made in accordance with subparagraph (A);
       ``(2) if the President does not submit a second nomination 
     to the Senate within 150 days after the date of the 
     rejection, withdrawal, or return of the first nomination--
       ``(A) the office shall remain vacant until the President 
     submits a second nomination to the Senate; and
       ``(B) in the case of an office other than the office of the 
     head of an Executive agency (including the Executive Office 
     of the President, and other than the General Accounting 
     Office), only the head of such Executive agency may perform 
     any function or duty of such office, until a nomination is 
     made in accordance with subparagraph (A); and
       ``(3) if an office is vacant after 150 days after the 
     rejection, withdrawal, or return of the second nomination--
       ``(A) the office shall remain vacant until a person is 
     appointed by the President, by and with the advice and 
     consent of the Senate; and
       ``(B) in the case of an office other than the office of the 
     head of an Executive agency (including the Executive Office 
     of the President, and other than the General Accounting 
     Office), only the head of such Executive agency may perform 
     any function or duty of such office, until an appointment is 
     made in accordance with subparagraph (A).
       ``(c) If the last day of any 150-day period under 
     subsection (b) is a day on which the Senate is not in 
     session, the first day the Senate is next in session and 
     receiving nominations shall be deemed to be the last day of 
     such period.
       ``(d)(1) Except as provided under paragraphs (1)(B), 
     (2)(B), and (3)(B) of subsection (b), an action shall have no 
     force or effect if such action--
       ``(A)(i) is taken by any person who fills a vacancy in 
     violation of subsection (b); and
       ``(ii) is the performance of a function or duty of such 
     vacant office; or
       ``(B)(i) is taken by a person who is not filling a vacant 
     office; and
       ``(ii) is the performance of a function or duty of such 
     vacant office.
       ``(2) An action that has no force or effect under paragraph 
     (1) may not be ratified.
       ``(d) This section shall not apply to--
       ``(1) the General Counsel of the National Labor Relations 
     Board;
       ``(2) the General Counsel of the Federal Labor Relations 
     Authority; or
       ``(3) any Inspector General appointed by the President, by 
     and with the advice and consent of the Senate.

     ``Sec. 3349. Reporting of vacancies

       ``(a) The head of each Executive agency (including the 
     Executive Office of the President, and other than the General 
     Accounting Office) shall submit to the Comptroller General of 
     the United States and to each House of Congress--
       ``(1) notification of a vacancy and the date such vacancy 
     occurred immediately upon the occurrence of the vacancy;
       ``(2) the name of any person serving in an acting capacity 
     and the date such service began immediately upon the 
     designation;
       ``(3) the name of any person nominated to the Senate to 
     fill the vacancy and the date such nomination is submitted 
     immediately upon the submission of the nomination; and
       ``(4) the date of a rejection, withdrawal, or return of any 
     nomination immediately upon such rejection, withdrawal, or 
     return.
       ``(b) If the Comptroller General of the United States makes 
     a determination that an officer is serving longer than the 
     150-day period including the applicable exceptions to such 
     period under section 3346, the Comptroller General shall 
     report such determination to--
       ``(1) the Committee on Governmental Affairs of the Senate;
       ``(2) the Committee on Government Reform and Oversight of 
     the House of Representatives;
       ``(3) the Committees on Appropriations of the Senate and 
     House of Representatives;
       ``(4) the appropriate committees of jurisdiction of the 
     Senate and House of Representatives;
       ``(5) the President; and
       ``(6) the Office of Personnel Management.

     ``Sec. 3349a. Presidential inaugural transitions

       ``(a) In this section, the term `transitional inauguration 
     day' means the date on which any person swears or affirms the 
     oath of office as President, if such person is not the 
     President on the date preceding the date of swearing or 
     affirming such oath of office.
       ``(b) With respect to any vacancy that exists during the 
     60-day period beginning on a transitional inauguration day, 
     the 150-day period under section 3346 or 3348 shall be deemed 
     to--
       ``(1) begin on the later of--
       ``(A) the date following such transitional inauguration 
     day; or
       ``(B) the date the vacancy occurs; and
       ``(2) be a period of 180 days.

     ``Sec. 3349b. Holdover provisions relating to certain 
       independent establishments

       ``With respect to any independent establishment for which a 
     single officer is the head of the establishment, sections 
     3345 through 3349a shall not be construed to affect any 
     statute that authorizes a person to continue to serve in any 
     office--
       ``(1) after the expiration of the term for which such 
     person is appointed; and
       ``(2) until a successor is appointed or a specified period 
     of time has expired.

     ``Sec. 3349c. Exclusion of certain officers

       ``Sections 3345 through 3349b shall not apply to--
       ``(1) any member who is appointed by the President, by and 
     with the advice and consent of the Senate to any board, 
     commission, or similar entity that--
       ``(A) is composed of multiple members; and
       ``(B) governs an independent establishment or Government 
     corporation; or
       ``(2) any commissioner of the Federal Energy Regulatory 
     Commission.''.
       (b) Technical and Conforming Amendment.--
       (1) Table of sections.--The table of sections for chapter 
     33 of title 5, United States

[[Page S6416]]

     Code, is amended by striking the matter relating to 
     subchapter III and inserting the following:

         ``SUBCHAPTER III--DETAILS, VACANCIES, AND APPOINTMENTS

``3341. Details; within Executive or military departments.
``[3342. Repealed.]
``3343. Details; to international organizations.
``3344. Details; administrative law judges.
``3345. Acting officer.
``3346. Time limitation.
``3347. Application.
``3348. Vacant office.
``3349. Reporting of vacancies.
``3349a. Presidential inaugural transitions.
``3349b. Holdover provisions relating to certain independent 
              establishments.
``3349c. Exclusion of certain officers.''.
       (2) Subchapter heading.--The subchapter heading for 
     subchapter III of chapter 33 of title 5, United States Code, 
     is amended to read as follows:

       ``SUBCHAPTER III--DETAILS, VACANCIES, AND APPOINTMENTS''.

     SEC. 3. EFFECTIVE DATE AND APPLICATION.

       (a) Effective Date.--This Act and the amendments made by 
     this Act shall take effect on the date of enactment of this 
     Act.
       (b) Application.--This Act shall apply to any office that--
       (1) becomes vacant after the date of enactment of this Act; 
     or
       (2) is vacant on such date, except sections 3345 through 
     3349 of title 5, United States Code (as amended by this Act), 
     shall apply as though such office first became vacant on such 
     date.
                                  ____

  Mr. THURMOND. Mr. President, I rise today as an original cosponsor of 
the Federal Vacancies Reform Act. This legislation is essential to help 
preserve and strengthen the advice and consent role of the Senate as 
mandated in the Constitution.
  One of the greatest fears of the Founders was the accumulation of too 
much power in one source, and the separation of powers among the three 
branches of Government is one of the keys to the success of our great 
democratic government. An excellent example of the separation of powers 
is the requirement in Article II, Section 2 of the Constitution that 
the President receive the advice and consent of the Senate for the 
appointment of officers of the United States. As Chief Justice 
Rehnquist wrote for the Supreme Court a few years ago, ``The Clause is 
a bulwark against one branch aggrandizing its power at the expense of 
another branch.''
  The Vacancies Act is central to the Appointments Clause because it 
places limits on the amount of time that the President can appoint 
someone to an advice and consent position in an acting capacity without 
sending a nomination to the Senate. However, for many years, the 
executive branch has failed to comply with the letter of the law. The 
Vacancies Act has no method of enforcement, so the executive branch 
just ignores it. When confronted with the act, the Attorney General 
makes very weak legal arrangements about its inapplicability. This is 
what the Attorney General did over one year ago when I raised the 
Vacancies Act at an oversight hearing. At the time, almost all of the 
top positions at the Justice Department were being filled in an acting 
capacity. I exchanged letters with her about the Vacancies Act, and 
detailed the fallacy in her argument. It was to no avail.
  I became convinced that legislation to rewrite the vacancies law and 
provide some remedy for violating it was the only way to get the 
executive branch to properly respect the advice and consent role of the 
Senate. Senator Lott and I introduced legislation earlier this year, 
and I testified about it before the Governmental Affairs Committee.
  I detailed for the Committee some prominent examples of how the Act 
was being ignored. President Clinton allowed the Criminal Division of 
the Justice Department to languish for over two and one half years 
before making an appointment. The Government had an Acting Solicitor 
General for an entire term of the Supreme Court. Most recently, the 
President installed an Acting Chief of the Civil Rights Division in 
blatant disregard of the Judiciary Committee's decision not to support 
his controversial choice.
  However, let me be clear. This bill is not about any one President or 
any one nominee. It is about preserving the institutional role of the 
Senate. A Republican President has no more right to ignore the 
appointments process than a Democrat President.
  Today, Senator Thompson, Senator Byrd, Senator Lot, and I are 
introducing a bipartisan bill to address the problem. It gives the 
President 150 days to send a nomination rather than the current 120 
days. If he does not comply, the office must remain vacant and the 
actions of any person acting in that office after that time are null 
and void, until a nominee is forwarded to the Senate. The bill also 
clarifies the application of the Vacancies Act to reject the Attorney 
General's flawed interpretation.
  Mr. President, we must act to preserve the advice and consent role of 
the Senate. As the Supreme Court has stated, ``The structural interests 
protected by the Appointments Clause are not those of any one branch of 
Government but of the entire Republic.'' Reforming the vacancies law is 
essential in this regard. Let us reaffirm the separation of powers for 
the sake of the Senate and the entire Republic.
                                 ______
                                 
      By Mr. INOUYE:
  S. 2177. A bill to express the sense of the Congress that the 
President should award a Presidential unit citation to the final crew 
of the U.S.S. Indianapolis, which was sunk on July 30, 1945; to the 
Committee on Armed Services.


           presidential unit citation to the uss indianapolis

 Mr. INOUYE. Mr. President, today I am introducing a Sense of 
the Congress bill which calls upon the President to award a 
Presidential Unit Citation to the final crew of the U.S.S. Indianapolis 
(CA-35) that recognizes the courage, fortitude, and heroism displayed 
by the crew in the face of tremendous hardship and adversity after 
their ship was torpedoed and sunk on July 30, 1945.
                                 ______
                                 
      By Mr. KOHL (for himself and D'Amato):
  S. 2178. A bill to amend the National Housing Act to authorize the 
Secretary of Housing and Urban Development to insure mortgages for the 
acquisition, construction, or substantial rehabilitation of child care 
and development facilities and to establish the Children's Development 
Commission to certify such facilities for such insurance, and for other 
purposes; to the Committee on Banking, Housing, and Urban Affairs.


                 Children's Development Commission Act

 Mr. KOHL. Mr. President, today I introduce the Children's 
Development Commission Act. I am pleased to be joined in this by my 
friend, Senator D'Amato. He brings to this endeavor a deep 
understanding of the nation's capital markets and a deep concern for 
the well being of this country's children. In the House of 
Representatives, Representatives Maloney and Baker have already 
introduced a companion measure, H.R. 3637.
  Our legislation is designed to address the credit market's failure to 
provide sufficient long term financing for the building and renovation 
of child care centers, after-school care programs, infant care, and 
family child care homes. Because the profit margin in such centers is 
very low, and the perceived risk is great, lenders are often unwilling 
to lend to child care operations. This is true despite the fact that an 
overwhelming number of studies show a shortage in the supply of quality 
child care--especially in urban areas, in low income areas, and for 
certain types of care (infant care, school age care, off-hour care).
  The Children's Development Commission Act creates a loan guarantee 
program through HUD to provide insurance to lenders willing to put up 
money for child care center mortgages, leases, or renovations. The 
program is modeled closely on the successful Section 232 HUD program 
that provides mortgage insurance for elder-care facilities.
  The bill also creates a ``Children's Development Commission'' or 
``Kiddie Mac'' which: (1) certifies child care development facilities 
eligible for guaranteed financing; (2) establishes the standards 
necessary to make such certification; (3) makes small purpose loans to 
child care facilities for reconstruction and renovation; (4) develops a 
plan to offer low cost liability and fire insurance to child care 
providers; and (5) creates a research foundation to support research 
into child care supply issues, fund pilot programs for improving child 
care, and publishes material for those interested in getting mortgage 
insurance through HUD.

[[Page S6417]]

  Congress will make one $10 million appropriation to fund the Kiddie 
Mac's incorporation and its micro-loan program; after that, a stock 
offering will fund Kiddie Mac until its financial activities and fee 
collection make it self-financing.
  The need, and the will, to take this sort of step to increase the 
supply of quality child care is evident. When I ran for Congress in 
1988, I talked about the importance of child care. At best, I received 
a polite smile of interest, and then the discussion would move on to 
the pressing issues of the day--the environment, the budget deficit, 
health care.
  Today, child care is being discussed earnestly at dinner tables 
across the nation and in Committee rooms all over the Capitol. Almost 
everyone has a personal story about trying to secure good child care, 
about trying to help an employee find good child care, about the 
terrible shortage of quality child care in their town or city.
  We have always talked about the necessities of life as being food, 
clothing and shelter. I think it is time we add a fourth--quality child 
care. It is necessary to give our children the strong start they need. 
It is necessary if we are going to take advantage of the tremendous 
ability to learn in the first three years of life.
  And quality child care is necessary in order for the growing number 
of families in which both parents work, for the growing number of 
single parent families to be able to earn a living, and for businesses 
that want to attract and retain productive, happy employees.
  Unfortunately, by every measure and in every state, quality child 
care is in short supply. And in most areas of the country, the sweeping 
welfare reform we passed last year has exacerbated existing shortages. 
In my State of Wisconsin, the State's welfare reform plan will generate 
the need for 8000 new child care slots in Milwaukee Country alone. And 
in New York City, by the year 2001, there will be 30,000 more children 
who need child care than there are child care spaces for them.
  The shortage is not just one of child care slots, but of quality 
child care slots. One major study showed that seven out of ten child 
care centers provide mediocre care, while one in eight is so inadequate 
that the health and safety of the children are threatened. Another 
survey found that more than half of parents with children in child care 
worry weekly about whether their children are well-served in their 
current arrangements.
  Kiddie Mac will help address these shortfalls in several ways. It 
will lower the costs of those setting up child care facilities, home 
child care, or pre-schools. By guaranteeing child care facility 
mortgages and leases, Kiddie Mac lowers the start-up costs to 
facilities allowing them to pass the savings on to teachers in the form 
of higher salaries and parents in the form of lower fees. Kiddie Mac 
will also provide loan guarantees to facilities that want to upgrade 
and providing micro-loans for small repairs related to licensing. This 
will allow existing centers and homes, even very small ones, to bring 
their facilities up to--and beyond--code.
  Kiddie Mac is a market-based, small-government approach to moving 
capital toward a very wise investment in quality child care. Kiddie 
Mac's services will be available to any organization who can show they 
will provide quality child care: businesses, non-profits, churches or 
synagogues, family home providers, or after-school programs. Decisions 
as to how much and how the care will be provided are left where they 
belong: with the local providers, with local communities, and with the 
parents.
  Mr. President, I ask unanimous consent that the text of the 
Children's Development Act be included in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2178

       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 ``Children's Development 
     Commission Act''.

     SEC. 2. CONGRESSIONAL FINDINGS.

       Congress finds the following:
       (1) The need for quality nursery schools, both full-time 
     and part-time child care centers and after-school programs, 
     after school programs, neighborhood-run mothers-day-out 
     programs, and family child care providers has grown among 
     working parents, and parents who stay at home, who want their 
     children to have access to early childhood education.
       (2) All parents should have access to safe, stimulating, 
     and educational early childhood education programs for their 
     children, whether such programs are carried out in a child 
     care center, a part-time nursery school (including a nursery 
     school operated by a religious organization), or a certified 
     child care provider's home.
       (3) The number of available enrollment opportunities for 
     children to receive quality child care services is not 
     meeting the demand for such services.
       (4) In 1995 there were about 21,000,000 children less than 
     6 years of age, of whom 31 percent were participating in 
     center-based child care services and 14 percent were 
     receiving child care in homes. Between 1992 and 2005 the 
     participation of women 24 to 54 years of age in the labor 
     force is projected to increase from 75 percent to 83 percent.
       (5) In States that have set up a mechanism to provide 
     capital improvements for child care facilities, the demand 
     for services of such facilities still has not been met.
       (6) The United States is behind other western, 
     industrialized countries when it comes to providing child 
     care services. In France, almost 100 percent of all children 
     3 to 5 years of age attend nursery school. In Germany this 
     number is 65 to 70 percent. In Japan 90 percent of such 
     children attend some form of preschool care. In all of these 
     countries early childhood care has proven to increase 
     children's development and performance.

     SEC. 3. INSURANCE FOR MORTGAGES ON NEW AND REHABILITATED 
                   CHILD CARE AND DEVELOPMENT FACILITIES.

       Title II of the National Housing Act (12 U.S.C. 1707 et 
     seq.) is amended by adding at the end the following:


     ``mortgage insurance for child care and development facilities

       ``Sec. 257. (a) Purpose.--The purpose of this section is to 
     facilitate and assist in the provision and development of 
     licensed child care and development facilities.
       ``(b) General Insurance Authority.--The Secretary may 
     insure mortgages (including advances on such mortgages during 
     construction) in accordance with the provisions of this 
     section and upon such terms and conditions as the Secretary 
     may prescribe and may make commitments for insurance of such 
     mortgages before the date of their execution or disbursement 
     thereon.
       ``(c) Eligible Mortgages.--To carry out the purpose of this 
     section, the Secretary may insure any mortgage that covers a 
     new child care and development facility, including a new 
     addition to an existing child care and development facility 
     (regardless of whether the existing facility is being 
     rehabilitated), or a substantially rehabilitated child care 
     and development facility, including equipment to be used in 
     the operation of the facility, subject to the following 
     conditions:
       ``(1) Approved mortgagor.--The mortgage shall be executed 
     by a mortgagor approved by the Secretary. The Secretary may, 
     in the discretion of the Secretary, require any such 
     mortgagor to be regulated or restricted as to charges and 
     methods of financing and, if the mortgagor is a corporate 
     entity, as to capital structure and rate of return. As an aid 
     to the regulation or restriction of any mortgagor with 
     respect to any of the foregoing matters, the Secretary may 
     make such contracts with and acquire for not more than $100 
     such stock or interest in such mortgagor as the Secretary may 
     consider necessary. Any stock or interest so purchased shall 
     be paid for out of the General Insurance Fund, and shall be 
     redeemed by the mortgagor at par upon the termination of all 
     obligations of the Secretary under the insurance.
       ``(2) Principal obligation.--The mortgage shall involve a 
     principal obligation in an amount not to exceed 90 percent of 
     the estimated value of the property or project, or 95 percent 
     of the estimated value of the property or project in the case 
     of a mortgagor that is a private nonprofit corporation or 
     association (as such term is defined pursuant to section 
     221(d)(3)), including--
       ``(A) equipment to be used in the operation of the facility 
     when the proposed improvements are completed and the 
     equipment is installed; or
       ``(B) a solar energy system (as defined in subparagraph (3) 
     of the last paragraph of section 2(a)) or residential energy 
     conservation measures (as defined in subparagraphs (A) 
     through (G) and (I) of section 210(11) of the National Energy 
     Conservation Policy Act), in cases in which the Secretary 
     determines that such measures are in addition to those 
     required under the minimum property standards and will be 
     cost-effective over the life of the measure.
       ``(3) Amortization and interest.--The mortgage shall--
       ``(A) provide for complete amortization by periodic 
     payments under such terms as the Secretary shall prescribe;
       ``(B) have a maturity satisfactory to the Secretary, but in 
     no event longer than 25 years; and
       ``(C) bear interest at such rate as may be agreed upon by 
     the mortgagor and the mortgagee, and the Secretary shall not 
     issue any

[[Page S6418]]

     regulations or establish any terms or conditions that 
     interfere with the ability of the mortgagor and mortgagee to 
     determine the interest rate.
       ``(d) Certification by Children's Development Commission.--
     The Secretary may not insure a mortgage under this section 
     unless the Children's Development Commission established 
     under section 258 certifies that the facility is in 
     compliance, or will be in compliance not later than 12 months 
     after such certification, with--
       ``(1) any laws, standards, and requirements applicable to 
     such facilities under the laws of the State, municipality, or 
     other unit of general local government in which the facility 
     is or is to be located; and
       ``(2) after the effective date of the standards and 
     requirements established under section 258(c)(2), such 
     standards and requirements.
       ``(e) Release.--The Secretary may consent to the release of 
     a part or parts of the mortgaged property or project from the 
     lien of any mortgage insured under this section upon such 
     terms and conditions as the Secretary may prescribe.
       ``(f) Mortgage Insurance Terms.--The provisions of 
     subsections (d), (e), (g), (h), (i), (j), (k), (l), and (n) 
     of section 207 shall apply to mortgages insured under this 
     section, except that all references in such subsections to 
     section 207 shall be considered, for purposes of mortgage 
     insurance under this section, to refer to this section.
       ``(g) Mortgage Insurance for Fire Safety Equipment Loans.--
       ``(1) Authority.--The Secretary may, upon such terms and 
     condition as the Secretary may prescribe, make commitments to 
     insure and insure loans made by financial institutions or 
     other approved mortgagees to child care and development 
     facilities to provide for the purchase and installation of 
     fire safety equipment necessary for compliance with the 1967 
     edition of the Life Safety Code of the National Fire 
     Protection Association (or any subsequent edition specified 
     by the Secretary of Health and Human Services).
       ``(2) Loan requirements.--To be eligible for insurance 
     under this subsection a loan shall--
       ``(A) not exceed the Secretary's estimate of the reasonable 
     cost of the equipment fully installed;
       ``(B) bear interest at such rate as may be agreed upon by 
     the mortgagor and the mortgagee;
       ``(C) have a maturity satisfactory to the Secretary;
       ``(D) be made by a financial institution or other mortgagee 
     approved by the Secretary as eligible for insurance under 
     section 2 or a mortgagee approved under section 203(b)(1);
       ``(E) comply with other such terms, conditions, and 
     restrictions as the Secretary may prescribe; and
       ``(F) be made with respect to a child care and development 
     facility that complies with the requirement under subsection 
     (d).
       ``(3) Insurance requirements.--The provisions of paragraphs 
     (5), (6), (7), (9), and (10) of section 220(h) shall apply to 
     loans insured under this subsection, except that all 
     references in such paragraphs to home improvement loans shall 
     be considered, for purposes of this subsection, to refer to 
     loans under this subsection. The provisions of subsections 
     (c), (d), and (h) of section 2 shall apply to loans insured 
     under this subsection, except that all references in such 
     subsections to `this section' or `this title' shall be 
     considered, for purposes of this subsection, to refer to this 
     subsection.
       ``(h) Schedules and Deadlines.--The Secretary shall 
     establish schedules and deadlines for the processing and 
     approval (or provision of notice of disapproval) of 
     applications for mortgage insurance under this section.
       ``(i) Definitions.--For the purposes of this section, the 
     following definitions shall apply:
       ``(1) Child care and development facility.--The term `child 
     care and development facility' means a public facility, 
     proprietary facility, or facility of a private nonprofit 
     corporation or association that--
       ``(A) has as its purpose the care and development of 
     children less than 12 years of age; and
       ``(B) is licensed or regulated by the State in which it is 
     located (or, if there is no State law providing for such 
     licensing and regulation by the State, by the municipality or 
     other political subdivision in which the facility is 
     located).

     The term does not include facilities for school-age children 
     primarily for use during normal school hours. The term 
     includes facilities for training individuals to provide child 
     care and development services.
       ``(2) Equipment.--The term `equipment' includes machinery, 
     utilities, and built-in equipment and any necessary 
     enclosures or structures to house them, and any other items 
     necessary for the functioning of a particular facility as a 
     child care and development facility, including necessary 
     furniture. Such term includes books, curricular, and program 
     materials.
       ``(3) Mortgage; first mortgage; mortgagee.--The term 
     `mortgage' means a first mortgage on real estate in fee 
     simple, or on the interest of either the lessor or lessee 
     thereof under a lease having a period of not less than 7 
     years to run beyond the maturity date of the mortgage. The 
     term `first mortgage' means such classes of first liens as 
     are commonly given to secure advances (including advances 
     during construction) on, or the unpaid purchase price of, 
     real estate under the laws of the State in which the real 
     estate is located, together with the credit instrument or 
     instruments (if any) secured thereby, and any mortgage may be 
     in the form of one or more trust mortgages or mortgage 
     indentures or deeds of trust, securing notes, bonds, or other 
     credit instruments, and, by the same instrument or by a 
     separate instrument, may create a security interest in 
     initial equipment, whether or not attached to the realty. The 
     term `mortgagor' has the meaning given the term in section 
     207(a).
       ``(j) Limitation on Insurance Authority.--
       ``(1) Termination.--No mortgage may be insured under this 
     section or section 223(h) after September 30, 2005, except 
     pursuant to a commitment to insure issued on or before such 
     date.
       ``(2) Aggregate principal amount limitation.--The aggregate 
     principal amount of mortgages for which the Secretary enters 
     into commitments to insure under this section or section 
     223(h) on or before the date under paragraph (1) may not 
     exceed $2,000,000,000. If, upon the date under paragraph (1), 
     the aggregate insurance authority provided under this 
     paragraph has not been fully used, the Secretary of the 
     Treasury shall submit a report to Congress evaluating the 
     need for continued mortgage insurance under this section.''.
       ``(k) Regulations.--The Secretary shall issue any 
     regulations necessary to carry out this section. In issuing 
     such regulations, the Secretary shall consult with the 
     Secretary of Health and Human Services with respect to any 
     aspects of the regulations regarding child care and 
     development facilities.''.

     SEC. 4. INSURANCE FOR MORTGAGES FOR ACQUISITION OR 
                   REFINANCING DEBT OF EXISTING CHILD CARE AND 
                   DEVELOPMENT FACILITIES.

       Section 223 of the National Housing Act (12 U.S.C. 1715n) 
     is amended by adding at the end the following:
       ``(h) Mortgage Insurance for Purchase or Refinancing of 
     Existing Child Care and Development Facilities.--
       ``(1) Authority.--Notwithstanding any other provision of 
     this Act, the Secretary may insure under any section of this 
     title a mortgage executed in connection with the purchase or 
     refinancing of an existing child care and development 
     facility, the purchase of a structure to serve as a child 
     care and development facility, or the refinancing of existing 
     debt of an existing child care and development facility.
       ``(2) Purchase of existing facilities and structures.--In 
     the case of the purchase under this subsection of an existing 
     child care and development facility or purchase of an 
     existing structure to serve as such a facility, the Secretary 
     shall prescribe any terms and conditions that the Secretary 
     considers necessary to ensure that--
       ``(A) the facility or structure purchased continues to be 
     used as a child care and development facility; and
       ``(B) the facility complies with the same requirements 
     applicable under subsections (d) and (e) of section 257 to 
     facilities having mortgages insured under such section.
       ``(3) Refinancing of existing facilities.--In the case of 
     refinancing of an existing child care and development 
     facility, the Secretary shall prescribe any terms and 
     conditions that the Secretary considers necessary to ensure 
     that--
       ``(A) the refinancing is used to lower the monthly debt 
     service costs (taking into account any fees or charges 
     connected with such refinancing) of the existing facility;
       ``(B) the proceeds of any refinancing will be employed only 
     to retire the existing indebtedness and pay the necessary 
     cost of refinancing on the existing facility;
       ``(C) the existing facility is economically viable; and
       ``(D) the facility complies with the same requirements 
     applicable under section 257(d) to facilities having 
     mortgages insured under such section.
       ``(4) Definitions.--For purposes of this subsection, the 
     terms defined in section 257(i) shall have the same meanings 
     as provided under such section.
       ``(5) Limitation on insurance authority.--The authority of 
     the Secretary to enter into commitments to insure mortgages 
     under this subsection is subject to the limitations under 
     section 257(j).''.

     SEC. 5. CHILDREN'S DEVELOPMENT COMMISSION.

       Title II of the National Housing Act (12 U.S.C. 1707 et 
     seq.) is amended by adding at the end (after section 257, as 
     added by section 3 of this Act) the following:


                  ``children's development commission

       ``Sec. 258. (a) Establishment.--There is hereby established 
     a commission to be known as the Children's Development 
     Commission.
       ``(b) Membership.--
       ``(1) Appointment.--The Commission shall be composed of 7 
     members appointed by the President, not later than the 
     expiration of the 3-month period beginning upon the enactment 
     of this section, by and with the advice and consent of the 
     Senate, as follows:
       ``(A) 1 member shall be appointed from among 3 individuals 
     recommended by the Secretary of Housing and Urban Development 
     or the Secretary's designee.
       ``(B) 1 member shall be appointed from among 3 individuals 
     recommended by the Secretary of Health and Human Services or 
     the Secretary's designee.
       ``(C) 1 member shall be appointed from among 3 individuals 
     recommended by the Secretary of the Treasury or the 
     Secretary's designee.

[[Page S6419]]

       ``(D) 4 members shall be appointed from among 12 
     individuals recommended jointly by the Speaker of the House 
     of Representatives, the Majority Leader of the Senate, 
     Minority Leader of the House of Representatives, the Minority 
     Leader of the Senate.
       ``(2) Qualifications of congressionally recommended 
     members.--Of the members appointed under paragraph (1)(D)--
       ``(A) each shall be an individual who actively participates 
     or is employed in the field of child care and has academic, 
     licensing, or other credentials relating to such 
     participation or employment; and
       ``(B) not more than 2 may be of the same political party.
       ``(3) Terms.--Each appointed member of the Commission shall 
     serve for a term of 3 years.
       ``(4) Vacancies.--Any member appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of that term. A member may serve after the 
     expiration of that member's term until a successor has taken 
     office. A vacancy in the Commission shall be filled in the 
     manner in which the original appointment was made.
       ``(5) Chairperson.--The chairperson of the Commission shall 
     be designated by the President at the time of appointment.
       ``(6) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum for the transaction of business.
       ``(7) Voting.--Each member of the Commission shall be 
     entitled to 1 vote, which shall be equal to the vote of every 
     other member of the Commission.
       ``(8) Prohibition on additional pay.--Members of the 
     Commission shall serve without compensation, but shall be 
     reimbursed for travel, subsistence, and other necessary 
     expenses incurred in the performance of their duties as 
     members of the Commission.
       ``(c) Functions.--The Commission shall carry out the 
     following functions:
       ``(1) Certification of compliance.--The Commission shall 
     collect such information and make such determinations as may 
     be necessary to determine, for purposes of section 257(d), 
     whether child care and development facilities comply, or will 
     be in compliance within 12 months, with--
       ``(A) any laws, standards, and requirements applicable to 
     such facilities under the laws of the State, municipality, or 
     other unit of general local government in which the facility 
     is or is to be located, and
       ``(B) after the effective date of the standards and 
     requirements established under paragraph (2), such standards 
     and requirements,

     and shall issue certifications of such compliance.
       ``(2) Establishment of standards.--
       ``(A) Study.--Not later than 12 months after the date on 
     which appointment of initial membership of the Commission is 
     completed, the Commission, in consultation with the Secretary 
     of Housing and Urban Development and the Secretary of Health 
     and Human Services, shall conduct a study to determine the 
     laws, standards, and requirements referred to in paragraph 
     (1)(A) that are applicable in each State. Taking into 
     consideration the findings of the study, the Secretary shall 
     establish standards and requirements regarding child care and 
     development facilities that are designed to ensure that 
     mortgage insurance is provided under section 257 and section 
     223(h) only for safe, clean, and healthy facilities that 
     provide appropriate care and development services for 
     children.
       ``(B) Publication.--The Commission shall issue regulations 
     providing for the standards and requirements established 
     under subparagraph (A) to take effect, for purposes of 
     sections 257(d)(2) and 223(h)(2)(B) and paragraph (1)(B) of 
     this section, not later than 18 months after the date of 
     enactment of this section.
       ``(3) Small purpose loans.--The Commission shall, to the 
     extent amounts are made available for such purpose pursuant 
     to subsection (i) and qualified requests are received, make 
     loans, directly or indirectly to providers of child care and 
     development facilities for reconstruction or renovation of 
     such facilities, subject to the following requirements:
       ``(A) Loans under this paragraph shall be made only for 
     such facilities that are financially and operationally 
     viable, as determined under standards and guidelines to be 
     established by the Commission.
       ``(B) The aggregate amount of loans made under this 
     paragraph to a single borrower may not exceed $50,000.
       ``(C) A loan made under this paragraph may not have a term 
     to maturity exceeding 7 years.
       ``(D) Loans under this paragraph shall bear interest at 
     rates and be made under such other conditions and terms as 
     the Commission shall provide.
       ``(4) Notification.--The Commission shall take such actions 
     as may be necessary to publicize the availability of the 
     programs for mortgage insurance under sections 257 and 223(h) 
     and loans under paragraph (3) of this subsection in a manner 
     that ensures that information concerning such programs will 
     be available to child care providers throughout the United 
     States.
       ``(5) Liability insurance.--Not later than 12 months after 
     the date on which appointment of initial membership of the 
     Commission is completed, the Commission shall establish 
     standards and guidelines, applicable to mortgage insurance 
     under sections 257 and 223(h) and loans under paragraph (3) 
     of this subsection, requiring child care providers operating 
     child care and development facilities assisted under such 
     provisions to obtain and maintain liability insurance in such 
     amounts and subject to such requirements as the Commission 
     considers appropriate.
       ``(6) Research foundation.--Not later than 12 months after 
     the date of enactment of this section, the Commission shall 
     submit a report to Congress recommending a plan for 
     establishing and funding a foundation that is an entity 
     independent of the Commission (but which maintains 
     association with the Commission), the purpose of which shall 
     be--
       ``(A) to support research relating to child care and 
     development facilities;
       ``(B) to fund pilot programs to test innovative methods for 
     improving child care; and
       ``(C) to engage in activities and publish materials to 
     assist persons interested in mortgage insurance under 
     sections 257 and 223(h) and other assistance provided by the 
     Commission.
       ``(d) Nondiscrimination Requirement.--
       ``(1) In general.--The Commission may not certify under 
     subsection (c)(1) or carry out any activities of the 
     Commission with respect to any child care and development 
     facility if the provider of the facility discriminates on 
     account of race, color, religion (subject to paragraph (2)), 
     national origin, sex (to the extent provided in title IX of 
     the Education Amendments of 1972 (20 U.S.C. 1681 et seq.)), 
     or handicapping condition.
       ``(2) Facilities of religious organizations.--The 
     prohibition with respect to religion shall not apply to a 
     child care and development facility which is controlled by or 
     which is closely identified with the tenets of a particular 
     religious organization if the application of this subsection 
     would not be consistent with the religious tenets of such 
     organization.
       ``(3) Certification.--As a condition of certification under 
     subsection (c)(1) and eligibility for a loan under subsection 
     (c)(3), the provider of a child care and development facility 
     shall certify to the Commission that the provider does not 
     discriminate, as required by the provisions of paragraph (1) 
     of this subsection.
       ``(e) Powers.--
       ``(1) Assistance from federal agencies.--The Commission may 
     secure directly from any department or agency of the Federal 
     Government such information as the Commission may require for 
     carrying out its functions. Upon request of the Commission, 
     any such department or agency shall furnish such information.
       ``(2) Assistance from general services administration.--The 
     Administrator of General Services shall provide to the 
     Commission, on a reimbursable basis, such administrative 
     support services as the Commission may request.
       ``(3) Assistance from department of housing and urban 
     development.--Upon the request of the Commission, the 
     Secretary of Housing and Urban Development shall, to the 
     extent possible and subject to the discretion of the 
     Secretary, detail any of the personnel of the Department of 
     Housing and Urban Development, on a nonreimbursable basis, to 
     assist the Commission in carrying out its functions under 
     this section.
       ``(4) Mails.--The Commission may use the United States 
     mails in the same manner and under the same conditions as 
     other Federal agencies.
       ``(f) Staff.--
       ``(1) Executive director.--The Commission shall appoint an 
     executive director of the Board, who shall be compensated at 
     a rate fixed by the Commission, but which shall not exceed 
     the rate established for level I of the Executive Schedule 
     under title 5, United States Code.
       ``(2) Other personnel.--In addition to the executive 
     director, the Commission may appoint and fix the compensation 
     of such personnel as the Commission considers necessary, in 
     accordance with the provisions of title 5, United States 
     Code, governing appointments to the competitive service, and 
     the provisions of chapter 51 and subchapter III of chapter 53 
     of such title, relating to classification and General 
     Schedule pay rates.
       ``(g) Reports.--Not later than March 31 of each year, the 
     Commission shall submit a report to the President and 
     Congress regarding the operations and activities of the 
     Commission during the preceding calendar year. Each annual 
     report shall include a copy of the Commission's financial 
     statements and such information and other evidence as is 
     necessary to demonstrate that the activities of the 
     Commission during the year for which the report is made. The 
     Commission may also submit reports to Congress and the 
     President at such other times as the Commission deems 
     desirable.
       ``(h) Definitions.--For purposes of this section, the terms 
     defined in section 257(i) shall have the same meanings as 
     provided under such section.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Commission to carry out 
     this section $10,000,000 for fiscal year 1999, to remain 
     available until expended, of which not more than $2,500,000 
     shall be available for administrative costs of the Commission 
     and the remainder of which shall be available only for loans 
     under subsection (c)(3).''.

[[Page S6420]]

     SEC. 6. STUDY OF AVAILABILITY OF SECONDARY MARKETS FOR 
                   MORTGAGES ON CHILD CARE FACILITIES.

       (a) Study.--The Secretary of the Treasury shall conduct a 
     study of the secondary mortgage markets to determine--
       (1) whether such a market exists for purchase of mortgages 
     eligible for insurance under sections 223(h) and 257 of the 
     National Housing Act (as added by this Act);
       (2) whether such a market would affect the availability of 
     credit available for development of child care and 
     development facilities or would lower development costs of 
     such facilities; and
       (3) the extent to which such a market or other activities 
     to provide credit enhancement for child care and development 
     facilities loans is needed to meet the demand for such 
     facilities.
       (b) Report.--The Secretary of the Treasury shall submit to 
     Congress a report regarding the results of the study 
     conducted under this section not later than the expiration of 
     the 2-year period beginning on the date of enactment of this 
     Act.

 Mr. D'AMATO. Mr. President, today I cosponsor the Children's 
Development Commission Act of 1998. I commend my friend and respected 
colleague, Senator Herb Kohl for introducing this critical piece of 
legislation which addresses a serious problem facing American families 
today--the shortage of affordable, quality child care.
  America is facing a shortage of quality child care which is 
approaching crisis levels. This shortage bears most heavily on working 
families, including young working single mothers. Every day more than 5 
million children under age 13 are left unattended after school. The 
parents of these children deserve meaningful, affordable child care 
options.
  The high cost of child care impacts directly on families, affecting 
their ability to pay the rent or mortgage, to put food on the table or 
to save for their children's education. The lack of decent, high 
quality child care also impedes the development of critical learning 
skills these children will need in order to succeed later in life. 
Social and medical research continues to stress the importance of the 
first three years of development on a child's well-being and ability to 
learn.
  In New York, the average cost of day care is over $6,000 per year--
and many families end up paying nearly $10,000 per year. Many families 
are unable to locate quality child care at all, as evidenced by the 
long waiting lists at existing centers. In New York City, approximately 
28,000 families are on waiting lists for assistance under the Child 
Care Development Block Grant Program.
  Mr. President, as more families make the difficult transition from 
welfare to work, waiting lists for affordable care and assistance will 
likely increase significantly. As a result of welfare reform, by the 
year 2002, there may be as many as 135,000 additional infants and 
toddlers in New York who will need affordable quality child care.
  These high costs and the overall shortage of quality care are found 
in all areas of my home State--cutting across urban and rural 
boundaries. The New York Human Services Administration estimates that 
more than two-thirds of children in the Morrisania section of the Bronx 
and more than seventy percent of children in the Brownsville section of 
Brooklyn are in need of child care.
  This shortage extends to rural areas of New York as well--for 
example, in Allegany, Hamilton, Washington and Yates counties there are 
no registered programs for school age children. Twenty of my State's 
sixty two counties have three or fewer registered school-age programs.
  The Child Care Development Commission Act will employ a number of 
cost-effective strategies to increase the availability and 
affordability of child care throughout the nation.
  First, the legislation would reduce lender risk by creating a new 
insurance authority within the Department of Housing and Urban 
Development's Federal Housing Administration (FHA). Using this new 
authority, FHA will provide loan guarantees for child care facilities. 
This will in turn spur the provision of private capital for the 
construction of new child care centers, the improvement of existing 
facilities and the cost of purchasing and installing fire safety 
equipment.
  Second, the Act will create a new streamlined Commission--known 
informally as ``Kiddie Mac.'' The Commission will provide reasonable 
low-cost ``micro-loans'' for the renovation and improvement of existing 
facilities. In addition, the Commission will certify that facilities 
receiving FHA insurance meet state and local standards, such as 
licensing and child safety requirements.
  Mr. President, The Children's Development Commission Act is an 
important step in ensuring that child care facilities can gain access 
to private market credit. Representatives Carolyn Maloney and Richard 
Baker have introduced companion legislation (H.R. 3637) in the House of 
Representatives. They deserve our praise for their diligence in 
addressing this issue.
  The Children's Development Commission Act makes an investment in our 
children, an investment in our families and an investment in our 
future. I look forward to working with my Senate and House colleagues 
for its enactment.
                                 ______
                                 
      By Ms. MOSELEY-BRAUN:
  S. 2179. A bill to amend the International Emergency Economic Powers 
Act to clarify the conditions under which export controls may be 
imposed on agricultural products; to the Committee on Banking, Housing, 
and Urban Affairs.


         SELECTIVE AGRICULTURE EMBARGO PROHIBITION ACT OF 1998

  Ms. MOSELEY-BRAUN. Mr. President, in January 1980, President Jimmy 
Carter terminated U.S. shipments of wheat and corn to the Soviet Union 
in retaliation against the Soviet invasion of Afghanistan. The effect 
of this embargo on the USSR was limited, but the impact on American 
farmers was severe, cutting off the market for 17 million tons of U.S. 
grain and prompting the Soviets to reduce long term reliance on U.S. 
farm exports.
  This action unfairly singled out the agriculture community to 
shoulder the burden of U.S. foreign policy. Congress quickly responded 
by limiting the President's power to impose restrictions on agriculture 
exports. The Export Administration Act, the principal export control 
statute of the era, was amended to include provisions to prohibit the 
President from imposing export controls on farm commodities for more 
than sixty days without Congressional approval.
  The Export Administration Act expired August 20, 1994, however, and 
consequently, the legal protections that prevent the singling out of 
agriculture exports are no longer in place.
  The current statutory vehicle that allows the President to impose 
economic sanctions is the International Emergency Economic Powers Act, 
also known by its acronym, IEEPA. The IEEPA allows the President to 
employ a wide range of sanctions against countries determined to be a 
threat to U.S. national security, foreign policy, or economy. If the 
President chooses to act under IEEPA, he can then declare a national 
emergency, and then is required to report to Congress explaining his 
actions. Sanctions authorized under IEEPA can continue until the 
President decides to terminate the emergency, or unless Congress acts 
to terminate it by joint resolution.
  The President enjoys almost unlimited authority under IEEPA. The 
statute requires the President to consult with Congress on his actions, 
but this consultation is discretionary, not mandatory. Most 
importantly, nothing in IEEPA prevents a President from targeting 
American agriculture as a tool for sanctions or embargos against a 
foreign nation.
  My bill, the Selective Agriculture Embargo Prohibition Act, simply 
restores the protection against selective embargos that farmers enjoyed 
before the EAA was allowed to lapse. Under the provisions of my bill, a 
President who imposes an embargo on agriculture commodities, using the 
authority provided by IEEPA, must report this action immediately to 
Congress. The President also must set forth the reasons, in detail, for 
this action, and specify the period of time, which may not exceed one 
year, that the agriculture export controls are proposed to be in 
effect.
  My bill allows Congress 60 days after receiving the report to adopt a 
joint resolution approving the agriculture exports controls. If 
Congress fails to adopt that resolution within 60 days, then the 
controls shall cease to be effective upon the expiration of the 60 
days.

[[Page S6421]]

  Entering and expanding into foreign markets is not a simple task. It 
requires years of extensive work to nurture business relationships, 
foster consumer confidence and trust, and establish the procedures for 
effective sales. Destroying foreign markets, by comparison, can occur 
swiftly and easily, wreaking long-lasting and largely irreparable 
damage on American industries that have invested the time and money to 
build a strong consumer base overseas. Those foreign purchasers who 
cannot rely on American imports will then turn to other sources--our 
foreign competitors--and shut out American products for good.
  That kind of damage was precisely the effect of the 1980 embargo on 
U.S. agriculture. And given the almost logarithmic increases in U.S. 
farm exports over the past decade, any sanction or embargo that targets 
agriculture today would have even greater devastating and permanent 
effects on the U.S. farm economy. We must ensure that this sort of 
mistake is never repeated.
  There will be critics who argue that my legislation ties the hands of 
the President. This is not the case. My bill simply ensures that we do 
not embargo agriculture commodities unless both the President and the 
Congress are in full agreement. My bill ensures that adequate 
safeguards are in place so that farm families do not unfairly shoulder 
the burden of American foreign policy.
  This legislation is very similar to the restrictions enacted three 
times by Congress during consideration of the Export Enhancement Act 
and later signed into law by President Ronald Reagan. This is a 
bipartisan bill is also good trade policy, good farm policy, and good 
economic policy. I urge my colleagues to support the swift passage of 
this bill in the Senate.
  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. 2179

       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 ``Selective Agriculture 
     Embargo Prohibition Act''.

     SEC. 2. AGRICULTURAL EXPORT CONTROLS.

       The International Emergency Economic Powers Act (50 U.S.C. 
     1701 et seq.) is amended--
       (1) by redesignating section 208 as section 209; and
       (2) by inserting after section 207 the following new 
     section:

     ``SEC. 208. AGRICULTURAL CONTROLS.

       ``(a) In General.--
       ``(1) Report to congress.--If the President imposes export 
     controls on any agricultural commodity in order to carry out 
     the provisions of this Act, the President shall immediately 
     transmit a report on such action to Congress, setting forth 
     the reasons for the controls in detail and specifying the 
     period of time, which may not exceed 1 year, that the 
     controls are proposed to be in effect. If Congress, within 60 
     days after the date of its receipt of the report, adopts a 
     joint resolution pursuant to subsection (b), approving the 
     imposition of the export controls, then such controls shall 
     remain in effect for the period specified in the report, or 
     until terminated by the President, whichever occurs first. If 
     Congress, within 60 days after the date of its receipt of 
     such report, fails to adopt a joint resolution approving such 
     controls, then such controls shall cease to be effective upon 
     the expiration of that 60-day period.
       ``(2) Application of paragraph (1).--The provisions of 
     paragraph (1) and subsection (b) shall not apply to export 
     controls--
       ``(A) which are extended under this Act if the controls, 
     when imposed, were approved by Congress under paragraph (1) 
     and subsection (b); or
       ``(B) which are imposed with respect to a country as part 
     of the prohibition or curtailment of all exports to that 
     country.
       ``(b) Joint Resolution.--
       ``(1) In general.--For purposes of this subsection, the 
     term `joint resolution' means only a joint resolution the 
     matter after the resolving clause of which is as follows: 
     `That, pursuant to section 208 of the International Emergency 
     Economic Powers Act, the President may impose export controls 
     as specified in the report submitted to Congress on 
     _________.', with the blank space being filled with the 
     appropriate date.
       ``(2) Introduction.--On the day on which a report is 
     submitted to the House of Representatives and the Senate 
     under subsection (a), a joint resolution with respect to the 
     export controls specified in such report shall be introduced 
     (by request) in the House of Representatives by the chairman 
     of the Committee on International Relations, for himself and 
     the ranking minority member of the Committee, or by Members 
     of the House designated by the chairman and ranking minority 
     member; and shall be introduced (by request) in the Senate by 
     the Majority Leader of the Senate, for himself and the 
     Minority Leader of the Senate, or by Members of the Senate 
     designated by the Majority Leader and Minority Leader of the 
     Senate. If either House is not in session on the day on which 
     such a report is submitted, the joint resolution shall be 
     introduced in that House, as provided in the preceding 
     sentence, on the first day thereafter on which that House is 
     in session.
       ``(3) Referral.--All joint resolutions introduced in the 
     House of Representatives and in the Senate shall be referred 
     to the appropriate committee.
       ``(4) Discharge of committee.--If the committee of either 
     House to which a joint resolution has been referred has not 
     reported the joint resolution at the end of 30 days after its 
     referral, the committee shall be discharged from further 
     consideration of the joint resolution or of any other joint 
     resolution introduced with respect to the same matter.
       ``(5) Consideration in senate and house of 
     representatives.--A joint resolution under this subsection 
     shall be considered in the Senate in accordance with the 
     provisions of section 601(b)(4) of the International Security 
     Assistance and Arms Export Control Act of 1976. For the 
     purpose of expediting the consideration and passage of joint 
     resolutions reported or discharged pursuant to the provisions 
     of this subsection, it shall be in order for the Committee on 
     Rules of the House of Representatives to present for 
     consideration a resolution of the House of Representatives 
     providing procedures for the immediate consideration of a 
     joint resolution under this subsection which may be similar, 
     if applicable, to the procedures set forth in section 
     601(b)(4) of the International Security Assistance and Arms 
     Export Control Act of 1976.
       ``(6) Passage by 1 house.--In the case of a joint 
     resolution described in paragraph (1), if, before the passage 
     by 1 House of a joint resolution of that House, that House 
     receives a resolution with respect to the same matter from 
     the other House, then--
       ``(A) the procedure in that House shall be the same as if 
     no joint resolution had been received from the other House; 
     but
       ``(B) the vote on final passage shall be on the joint 
     resolution of the other House.
       ``(c) Computation of Time.--In the computation of the 
     period of 60 days referred to in subsection (a) and the 
     period of 30 days referred to in paragraph (4) of subsection 
     (b), there shall be excluded the days on which either House 
     of Congress is not in session because of an adjournment of 
     more than 3 days to a day certain or because of an 
     adjournment of Congress sine die.''.
                                 ______
                                 
      By Mr. LOTT (for himself and Mr. Daschle):
  S. 2180. A bill to amend the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 to clarify liability under that 
Act for certain recycling transactions; to the Committee on Environment 
and Public Works.


               the superfund recycling equity act of 1998

  Mr. LOTT. Mr. President, today, I am pleased to join my colleague, 
Senate Minority Leader Daschle, in introducing legislation which 
removes an unintended yet troublesome legal obstacle to recycling.
  It is not a widely known fact that Superfund is biased against 
recycling. I am confident that the authors of the statute did not 
intend to favor new materials over those that have been recycled, but 
we now live with this unintended consequence.
  Mr. President, our bill corrects current law and encourages 
recycling. It simply recognizes that recycling is not disposal and that 
recyclables are not wastes. Common sense tells us that recycling 
something is not the same as disposing of it.
  Nonetheless, Mr. President, those who sell materials for recycling 
are being pulled into Superfund cleanups because, under the law, 
selling recyclable materials is equivalent to ``arranging for 
disposal.'' Our bill waives Superfund liability for those who are 
legitimately recycling these goods. Clearly, recycling is not 
disposal--it is the opposite.
  The Superfund Recycling Equity Act is necessary to correct 
Superfund's fundamental bias against recycled materials. Under current 
law, recyclable materials, such as paper, glass, plastic, metals and 
textiles cannot be competitive with new materials. This bill will help 
level the playing field between the use of recycled goods and 
competitive virgin raw materials. Currently, suppliers of virgin raw 
materials face no Superfund liability for contamination caused by their 
customer. This bill would provide the same waiver to those who sell 
recyclable materials.

[[Page S6422]]

  Mr. President, this bill also contains protections to ensure that 
sham recyclers are unable to benefit from this exemption. In order for 
recyclers to be relieved of Superfund liability, they must act in an 
environmentally sound manner and sell their product to manufacturers 
with environmentally responsible business practices. Considering that 
most recyclers are currently operating in a reasonable and conscience 
manner, this should be an easy test.
  Mr. President, the Superfund Recycling Equity Act is the product of 
lengthy negotiations between the federal and state governments, the 
environmental community and the scrap recycling industry. These 
negotiations have resulted in a bill that I believe to be both 
environmentally and fiscally sound.
  Americans nationwide have embraced the benefits of recycling. We know 
that increased recycling means the more efficient use of our natural 
resources. By removing the threat of Superfund liability for recyclers, 
we will encourage more recycling.
  I hope that my colleagues on both sides of the aisle will lend their 
support to this targeted and much-needed reform bill.
  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. 2180

       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 ``Superfund Recycling Equity 
     Act of 1998''.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to promote the reuse and recycling of scrap material in 
     furtherance of the goals of waste minimization and natural 
     resource conservation while protecting human health and the 
     environment;
       (2) to create greater equity in the statutory treatment of 
     recycled versus virgin materials; and
       (3) to remove the disincentives and impediments to 
     recycling created as an unintended consequence of the 1980 
     Superfund liability provisions.

     SEC. 3. CLARIFICATION OF LIABILITY UNDER CERCLA FOR RECYCLING 
                   TRANSACTIONS.

       (a) Clarification.--Title I of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 127. RECYCLING TRANSACTIONS.

       ``(a) Liability Clarification.--As provided in subsections 
     (b), (c), (d), and (e), a person who arranged for recycling 
     of recyclable material shall not be liable under section 
     107(a)(3) or 107(a)(4) with respect to the material.
       ``(b) Recyclable Material Defined.--For purposes of this 
     section, the term `recyclable material' means scrap paper, 
     scrap plastic, scrap glass, scrap textiles, scrap rubber 
     (other than whole tires), scrap metal, or spent lead-acid, 
     spent nickel-cadmium, and other spent batteries, as well as 
     minor amounts of material incident to or adhering to the 
     scrap material as a result of its normal and customary use 
     prior to becoming scrap; except that such term shall not 
     include shipping containers of a capacity from 30 liters to 
     3,000 liters, whether intact or not, having any hazardous 
     substance (but not metal bits and pieces or hazardous 
     substance that form an integral part of the container) 
     contained in or adhering thereto.
       ``(c) Transactions Involving Scrap Paper, Plastic, Glass, 
     Textiles, or Rubber.--Transactions involving scrap paper, 
     scrap plastic, scrap glass, scrap textiles, or scrap rubber 
     (other than whole tires) shall be deemed to be arranging for 
     recycling if the person who arranged for the transaction (by 
     selling recyclable material or otherwise arranging for the 
     recycling of recyclable material) can demonstrate by a 
     preponderance of the evidence that all of the following 
     criteria were met at the time of the transaction:
       ``(1) The recyclable material met a commercial 
     specification grade.
       ``(2) A market existed for the recyclable material.
       ``(3) A substantial portion of the recyclable material was 
     made available for use as feedstock for the manufacture of a 
     new saleable product.
       ``(4) The recyclable material could have been a replacement 
     or substitute for a virgin raw material, or the product to be 
     made from the recyclable material could have been a 
     replacement or substitute for a product made, in whole or in 
     part, from a virgin raw material.
       ``(5) For transactions occurring 90 days or more after the 
     date of enactment of this section, the person exercised 
     reasonable care to determine that the facility where the 
     recyclable material was handled, processed, reclaimed, or 
     otherwise managed by another person (hereinafter in this 
     section referred to as a `consuming facility') was in 
     compliance with substantive (not procedural or 
     administrative) provisions of any Federal, State, or local 
     environmental law or regulation, or compliance order or 
     decree issued pursuant thereto, applicable to the handling, 
     processing, reclamation, storage, or other management 
     activities associated with recyclable material.
       ``(6) For purposes of this subsection, `reasonable care' 
     shall be determined using criteria that include (but are not 
     limited to)--
       ``(A) the price paid in the recycling transaction;
       ``(B) the ability of the person to detect the nature of the 
     consuming facility's operations concerning its handling, 
     processing, reclamation, or other management activities 
     associated with recyclable material; and
       ``(C) the result of inquiries made to the appropriate 
     Federal, State, or local environmental agency (or agencies) 
     regarding the consuming facility's past and current 
     compliance with substantive (not procedural or 
     administrative) provisions of any Federal, State, or local 
     environmental law or regulation, or compliance order or 
     decree issued pursuant thereto, applicable to the handling, 
     processing, reclamation, storage, or other management 
     activities associated with the recyclable material. For the 
     purposes of this paragraph, a requirement to obtain a permit 
     applicable to the handling, processing, reclamation, or other 
     management activity associated with the recyclable materials 
     shall be deemed to be a substantive provision.
       ``(d) Transactions Involving Scrap Metal.--
       ``(1) Transactions involving scrap metal shall be deemed to 
     be arranging for recycling if the person who arranged for the 
     transaction (by selling recyclable material or otherwise 
     arranging for the recycling of recyclable material) can 
     demonstrate by a preponderance of the evidence that at the 
     time of the transaction--
       ``(A) the person met the criteria set forth in subsection 
     (c) with respect to the scrap metal;
       ``(B) the person was in compliance with any applicable 
     regulations or standards regarding the storage, transport, 
     management, or other activities associated with the recycling 
     of scrap metal that the Administrator promulgates under the 
     Solid Waste Disposal Act subsequent to the enactment of this 
     section and with regard to transactions occurring after the 
     effective date of such regulations or standards; and
       ``(C) the person did not melt the scrap metal prior to the 
     transaction.
       ``(2) For purposes of paragraph (1)(C), melting of scrap 
     metal does not include the thermal separation of 2 or more 
     materials due to differences in their melting points 
     (referred to as `sweating').
       ``(3) For purposes of this subsection, the term `scrap 
     metal' means bits and pieces of metal parts (e.g., bars, 
     turnings, rods, sheets, wire) or metal pieces that may be 
     combined together with bolts or soldering (e.g., radiators, 
     scrap automobiles, railroad box cars), which when worn or 
     superfluous can be recycled, except for scrap metals that the 
     Administrator excludes from this definition by regulation.
       ``(e) Transactions Involving Batteries.--Transactions 
     involving spent lead-acid batteries, spent nickel-cadmium 
     batteries, or other spent batteries shall be deemed to be 
     arranging for recycling if the person who arranged for the 
     transaction (by selling recyclable material or otherwise 
     arranging for the recycling of recyclable material) can 
     demonstrate by a preponderance of the evidence that at the 
     time of the transaction--
       ``(1) the person met the criteria set forth in subsection 
     (c) with respect to the spent lead-acid batteries, spent 
     nickel-cadmium batteries, or other spent batteries, but the 
     person did not recover the valuable components of such 
     batteries; and
       ``(2)(A) with respect to transactions involving lead-acid 
     batteries, the person was in compliance with applicable 
     Federal environmental regulations or standards, and any 
     amendments thereto, regarding the storage, transport, 
     management, or other activities associated with the recycling 
     of spent lead-acid batteries;
       ``(B) with respect to transactions involving nickel-cadmium 
     batteries, Federal environmental regulations or standards are 
     in effect regarding the storage, transport, management, or 
     other activities associated with the recycling of spent 
     nickel-cadmium batteries, and the person was in compliance 
     with applicable regulations or standards or any amendments 
     thereto; or
       ``(C) with respect to transactions involving other spent 
     batteries, Federal environmental regulations or standards are 
     in effect regarding the storage, transport, management, or 
     other activities associated with the recycling of such 
     batteries, and the person was in compliance with applicable 
     regulations or standards or any amendments thereto.
       ``(f) Exclusions.--
       ``(1) The exemptions set forth in subsections (c), (d), and 
     (e) shall not apply if--
       ``(A) the person had an objectively reasonable basis to 
     believe at the time of the recycling transaction--
       ``(i) that the recyclable material would not be recycled;
       ``(ii) that the recyclable material would be burned as 
     fuel, or for energy recovery or incineration; or
       ``(iii) for transactions occurring before 90 days after the 
     date of the enactment of this section, that the consuming 
     facility was not

[[Page S6423]]

     in compliance with a substantive (not procedural or 
     administrative) provision of any Federal, State, or local 
     environmental law or regulation, or compliance order or 
     decree issued pursuant thereto, applicable to the handling, 
     processing, reclamation, or other management activities 
     associated with the recyclable material;
       ``(B) the person had reason to believe that hazardous 
     substances had been added to the recyclable material for 
     purposes other than processing for recycling;
       ``(C) the person failed to exercise reasonable care with 
     respect to the management and handling of the recyclable 
     material (including adhering to customary industry practices 
     current at the time of the recycling transaction designed to 
     minimize, through source control, contamination of the 
     recyclable material by hazardous substances); or
       ``(D) with respect to any item of a recyclable material, 
     the item--
       ``(i) contained polychlorinated biphenyls at a 
     concentration in excess of 50 parts per million or any new 
     standard promulgated pursuant to applicable Federal laws; or
       ``(ii) is an item of scrap paper containing at the time of 
     the recycling transaction a concentration of a hazardous 
     substance that has been determined by the Administrator, 
     after notice and comment, to present a significant risk to 
     human health or the environment, or contained that hazardous 
     substance at a concentration at or higher than that 
     determined by the Administrator to present such a significant 
     risk.
       ``(2) For purposes of this subsection, an objectively 
     reasonable basis for belief shall be determined using 
     criteria that include (but are not limited to) the size of 
     the person's business, customary industry practices 
     (including customary industry practices current at the time 
     of the recycling transaction designed to minimize, through 
     source control, contamination of the recyclable material by 
     hazardous substances), the price paid in the recycling 
     transaction, and the ability of the person to detect the 
     nature of the consuming facility's operations concerning its 
     handling, processing, reclamation, or other management 
     activities associated with the recyclable material.
       ``(3) For purposes of this subsection, a requirement to 
     obtain a permit applicable to the handling, processing, 
     reclamation, or other management activities associated with 
     recyclable material shall be deemed to be a substantive 
     provision.
       ``(g) Effect on Other Liability.--Nothing in this section 
     shall be deemed to affect the liability of a person under 
     paragraph (1) or (2) of section 107(a). Nothing in this 
     section shall be deemed to affect the liability of a person 
     under paragraph (3) or (4) of section 107(a) with respect to 
     materials that are not recyclable materials as defined in 
     subsection (b) of this section.
       ``(h) Regulations.--The Administrator has the authority, 
     under section 115, to promulgate additional regulations 
     concerning this section.
       ``(i) Effect on Pending or Concluded Actions.--The 
     exemptions provided in this section shall not affect any 
     concluded judicial or administrative action or any pending 
     judicial action initiated by the United States prior to 
     enactment of this section.
       ``(j) Liability for Attorney's Fees for Certain Actions.--
     Any person who commences an action in contribution against a 
     person who is not liable by operation of this section shall 
     be liable to that person for all reasonable costs of 
     defending that action, including all reasonable attorney's 
     and expert witness fees.
       ``(k) Relationship to Liability Under Other Laws.--Nothing 
     in this section shall affect--
       ``(1) liability under any other Federal, State, or local 
     statute or regulation promulgated pursuant to any such 
     statute, including any requirements promulgated by the 
     Administrator under the Solid Waste Disposal Act; or
       ``(2) the ability of the Administrator to promulgate 
     regulations under any other statute, including the Solid 
     Waste Disposal Act.''.
       (b) Technical Amendment.--The table of contents for title I 
     of such Act is amended by adding at the end the following 
     item:

  ``Sec. 127. Recycling transactions.''.

  Mr. DASCHLE. Mr. President, I am pleased to join the distinguished 
majority leader in introducing this bill to promote the reuse and 
recycling of scrap materials. There is broad agreement that more should 
be done to establish a climate in which businesses are encouraged to 
recycle scrap materials in an environmentally sound manner. We should 
make every effort to expand the responsible and beneficial use and 
reuse of this waste as soon as possible.
  While I remain hopeful that bipartisan negotiators will be able to 
work out differences on broad-based Superfund reform, it appears 
unlikely that Congress will achieve that goal this year. That is 
particularly unfortunate, because there are many elements of Superfund 
reform for which there is agreement and for which we should move 
forward as expeditiously as possible, including establishing greater 
incentives for brownfields redevelopment, and providing liability 
relief to deserving municipalities and small businesses.
  There are a number of important Superfund issues on which there 
continues to be significant disagreement. Despite the fact that 
resolution of these issues is unlikely in the near-term, we should not 
allow ourselves to adjourn this year without making a strong effort to 
enact those reforms on which there is broad agreement.
  Therefore, I am very pleased that Senator Lott has taken the 
initiative to move forward with this important element of Superfund 
reform. With enactment of this legislation, we will foster additional 
scrap recycling in America, thereby reducing the stream of waste 
materials now sent to landfills and other solid waste management 
facilities. By doing so, we will help to eliminate the fears of many 
businesses of potential Superfund liabilities even if they pursue 
legitimate means to recycle scrap materials. By clarifying the 
liability rules for recycling transactions under Superfund, this 
legislation will place recyclers on a more even playing field compared 
with those who produce goods using virgin materials.
  In conclusion, Mr. President, I am pleased to cosponsor this timely 
legislation with Senator Lott. This is an important step in providing 
meaningful reform and clarification to the Superfund law and I 
encourage all my colleagues to support this effort to promote scrap 
recycling as soon as possible.

                          ____________________