[Congressional Record Volume 144, Number 86 (Friday, June 26, 1998)]
[Senate]
[Pages S7256-S7286]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. LOTT (for Mr. McCain (for himself and Mr. Bryan)):
S. 2238. A bill to reform unfair and anticompetitive practices in the
professional boxing industry; to the Committee on Commerce, Science,
and Transportation.
muhammad ali boxing reform act
Mr. McCAIN. Mr. President, I am pleased today to introduce a
new bipartisan proposal to improve several aspects of the professional
boxing industry in the U.S. I am joined by Senator Bryan of Nevada in
offering this legislation. He has been a great partner in my efforts to
improve the safety and integrity of this major industry in the public
interest.
This bill is intended to protect boxers from some of the most
egregious and onerous business practices which they have been subjected
to across the U.S. over the last several decades. It will also help
State officials provide more effective public oversight of boxing
events held in their jurisdiction, so that they can better prevent
business practice abuses and unethical conduct. Furthermore, this
legislation will improve integrity and open competition in professional
boxing, by curbing its most restrictive and anti-competitive business
practices. This is a limited and modest proposal in many respects, but
it is the product of months of consultation with experienced State
athletic officials and the most respected and knowledgeable members of
the boxing industry.
Let me say a few words about the title of this legislation. I thought
it would be a fitting tribute to name an important new reform measure
on professional boxing after Muhammad Ali. Mr. Ali had perhaps the most
impressive and exciting career in the history of professional boxing,
and his many championships and achievements are legendary in the sport.
Of course, Muhammad Ali's character, integrity, and personal charm
appealed to tens of millions of Americans who did not even consider
themselves to be boxing fans. His entire life has been a story of
tremendous determination, accomplishment, and perseverance against
daunting odds. I feel it most appropriate for the Congress pass a
measure to protect the interests of boxers, encourage fair competition,
and vastly improve the overall integrity of the boxing industry, that
is named in his honor. I want to thank Mr. Ali for his graciousness in
letting this legislation be so named.
I have been deeply involved in exploring ways to improve the
professional boxing industry for most of this decade. It is a complex
task. Many of the steps that need to be taken to permanently end the
disreputable and abusive business practices which have long marred the
sport must be taken either by members of the industry, or by State
officials. I firmly believe that State boxing commissioners and
industry leaders must be the primary agents of reform in this sport. It
is they who I have continually turned to for advice and recommendations
on how the federal government might be of help, albeit in a limited and
supportive role.
This proposal seeks to remedy many of the anti-competitive,
oppressive, and unethical business practices which have cheated
professional boxers and denied the public the benefits of a truly
honest and legitimate sport. This reform measure is designed to
prohibit the harmful and arbitrary business practices which have
clearly hurt the welfare of professional boxers, without imposing
unnecessary restrictions or federal intrusions into the sport. I want
to emphasize that this proposal requires no State or federal funding;
creates no federal bureaucracy; imposes no mandates on State
commissions; and requires no new regulatory actions by State boxing
commissioners. It is a modest and practical measure that will establish
several ``fair contracting'' standards to protect professional boxers,
and enhance important financial disclosures that are made to State
commissions by business entities in the industry.
This bill also would establish certain federal standards with which
boxing's ``sanctioning organizations'' must comply. These entities are
notorious in the
[[Page S7257]]
sport for engaging in arbitrary and manipulative activity with respect
to their ratings of professional boxers. Though often foreign-based,
these entities operate on an interstate basis in the U.S. with
virtually no oversight at the State or federal level. For several
decades they have been repeatedly and credibly criticized by boxers and
sportswriters for business practices that are highly questionable.
Their inconsistent and subjective methods of rating boxers, often in
apparent collusion with powerful promoters in the sport, clearly has
had negative consequences for boxers. A boxer's career can be
effectively stalled or crippled by these entities' arbitrary decisions.
This legislation would establish a series of prudent business conduct
standards and financial disclosure requirements on sanctioning
organizations to ensure they are subject to legitimate public oversight
by State officials.
I want to note the vital need for these reforms at the federal level,
Mr. President. Boxing in the U.S. is regulated by individual State
boxing commissions, many of which are severely underfunded and
understaffed. Many do not have more than a single employee. Though many
State commissions have extremely knowledgeable and dedicated members,
they do not have the capacity to prevent the indefensible interstate
business abuses which this legislation address. Indeed, when a small
group of states boxing commissions tries to crack down on the promoters
and others who are engaged in fraudulent or unethical activity, State
officials face the prospect of losing all their professional boxing
events to another jurisdiction. Promoters and sanctioning bodies can
avoid State reforms by seeking out new forums where public interest
protections are fewer and weaker. That is not good for the boxers who
bear all the risks of this punishing profession, and it not good for
the ticket-buying fans, either.
Decades of scandals, controversy, and corruption have shown
professional boxing to be an industry where public oversight is
absolutely critical, Mr. President. Therefore, this limited series of
national fair business standards and public disclosure requirements
will be of tremendous service to the State officials and general public
concerned about this industry. This bill will in no way interfere with
any legitimate, good faith business practices in the sport.
Senator Bryan and the many industry members that I have worked with
over the past five months to develop this bill have come up with a
solid, practical, and no-cost way to protect the interests of the
athletes and the public in the boxing industry. The sole objectives of
this bill are to ensure that boxers are not cheated of their fair
earnings in the sport; that State officials are given better
information with which to supervise major boxing events, and take
corrective actions when necessary; and to encourage integrity and
honest business practices by the business interests which dominate
professional boxing. I have attached a one page summary of this
proposal, and ask unanimous consent to print the bill and summary in
the Record. I look forward to comments on this proposal by members of
the industry and State commissioners across the U.S., and ask my
colleagues for their support.
There being no objection, the items were ordered to be printed in the
Record, as follows:
S. 2238
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 ``Muhammad Ali Boxing Reform
Act''.
SEC 2. FINDINGS.
The Congress makes the following findings:
(1) Professional boxing differs from other major,
interstate professional sports industries in the United
States in that it operates without any private sector
association, league, or centralized industry organization to
establish uniform and appropriate business practices and
ethical standards. This has led to repeated occurrences of
disreputable and coercive business practices in the boxing
industry, to the detriment of professional boxers nationwide.
(2) Professional boxers are vulnerable to exploitative
business practices engaged in by certain promoters and
sanctioning bodies which dominate the sport. Boxers do not
have an established representative group to advocate for
their interests and rights in the industry.
(3) State officials are the proper regulators of
professional boxing events, and must protect the welfare of
professional boxers and serve the public interest by closely
supervising boxing activity in their jurisdiction. State
boxing commissions do not currently receive adequate
information to determine whether boxers competing in their
jurisdiction are being subjected to contract terms and
business practices which may be violative of State
regulations, or are onerous and confiscatory.
(4) Promoters who engage in illegal, coercive, or unethical
business practices can take advantage of the lack of
equitable business standards in the sport by holding boxing
events in states with weaker regulatory oversight.
(5) The sanctioning organizations which have proliferated
in the boxing industry have not established credible and
objective criteria to rate professional boxers, and operate
with virtually no industry or public oversight. Their ratings
are susceptible to manipulation, have deprived boxers of fair
opportunities for advancement, and have undermined public
confidence in the integrity of the sport.
(6) Open competition in the professional boxing industry
has been significantly interfered with by restrictive and
anti-competitive business practices of certain promoters and
sanctioning bodies, to the detriment of the athletes and the
ticket-buying public. Common practices of promoters and
sanctioning organizations represent restraints of interstate
trade in the United States.
(7) It is necessary and appropriate to establish national
contracting reforms to protect professional boxers and
prevent exploitative business practices, and to require
enhanced financial disclosures to State athletic commissions
to improve the public oversight of the sport.
(8) Whereas the Congress seeks to improve the integrity and
ensure fair practices of the professional boxing industry on
a nationwide basis, it deems it appropriate to name this
reform in honor of Muhammad Ali, whose career achievements
and personal contributions to the sport, and positive impact
on our society, are unsurpassed in the history of boxing.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to protect the rights and welfare of professional
boxers by preventing certain exploitative, oppressive, and
unethical business practices they may be subject to on an
interstate basis;
(2) to assist State boxing commissions in their efforts to
provide more effective public oversight of the sport; and
(3) to promoting honorable competition in professional
boxing and enhance the overall integrity of the industry.
SEC 4. PROTECTING BOXERS FROM EXPLOITATION.
The Professional Boxing Safety Act of 1996 (15 U.S.C. 6301
et seq.) is amended by--
(1) redesignating section 15 as 16; and
(2) inserting after section 14 the following:
``SEC. 15. PROTECTION FROM EXPLOITATION.
``(a) Contract Requirements.--
``(1) In general.--Any contract between a boxer and a
promoter or manager shall--
``(A) be reasonable;
``(B) include mutual obligations between the parties; and
``(C) specify a minimum number of professional boxing
matches per year for the boxer.
``(2) 1-year limit on coercive promotional rights.--The
period of time for which promotional rights to promote a
boxer may be granted under a contract between the boxer and a
promoter, or between promoters with respect to a boxer, may
not be greater than 12 months in length if the boxer is
required to grant such rights, or a boxer's promoter is
required to grant such rights with respect to a boxer, as a
condition precedent to the boxer's participation in a
professional boxing match. Nothing in this paragraph shall be
construed as pre-empting any State statute or common law rule
against interference with contract.
``(3) Promotional rights under mandatory bout contracts.--
Neither a promoter nor a sanctioning organization may require
a boxer, in a contract arising from a professional boxing
match that is a mandatory bout under the rules of the
sanctioning organization, to grant promotional rights to any
promoter for a future professional boxing match.
``(b) Employment As Condition of Promoting, Etc..--No
person who is a licensee, manager, matchmaker, or promoter
may require a boxer to employ, retain, or provide
compensation to any individual or business enterprise
(whether operating in corporate form or not) recommended or
designated by that person as a condition of--
``(1) such person's working with the boxer as a licensee,
manager, matchmaker, or promoter;
``(2) such person's arranging for the boxer to participate
in a professional boxing match; or
``(3) such boxer's participation in a professional boxing
match.
``(c) Enforcement.--
``(1) Promotion agreement.--A provision in a contract
between a promoter and a boxer, or between promoters with
respect to a boxer, that violates subsection (a) is contrary
to public policy and unenforceable at law.
``(2) Employment agreement.--In any action brought against
a boxer to recover money (whether as damages or as money
[[Page S7258]]
owed) for acting as a licensee, manager, matchmaker, or
promoter for the boxer, the court, arbitrator, or
administrative body before which the action is brought may
deny recovery in whole or in part under the contract as
contrary to public policy if the employment, retention, or
compensation that is the subject of the action was obtained
in violation of subsection (b).''.
(b) Conflicts of Interest.--Section 9 of such Act (15
U.S.C. 6308) is amended by--
(1) striking ``No member'' and inserting ``(a) Regulatory
Personnel.--No member''; and
(2) adding at the end thereof the following:
``(b) Firewall Between Promoters and Managers.--
``(1) In general.--It is unlawful for--
``(A) a promoter to have a direct or indirect financial
interest in the management of a boxer; or
``(B) a manager to have a direct or indirect financial
interest in the promotion of a boxer.
``(2) Exception for Self-promotion and management.--
Paragraph (1) does not prohibit a boxer from acting as his
own promoter or manager.''.
SEC. 5. SANCTIONING ORGANIZATION INTEGRITY REFORMS.
(a) In General.--The Professional Boxing Safety Act of 1996
(15 U.S.C. 6301 et seq.), as amended by section 4 of this
Act, is amended by--
(1) redesignating section 16, as redesignated by section 4
of this Act, as section 17; and
(2) by inserting after section 15 the following:
``SEC. 16. SANCTIONING ORGANIZATIONS.
``(a) Objective Criteria.--A sanctioning organization that
sanctions professional boxing matches on an interstate basis
shall establish objective and consistent written criteria for
the ratings of professional boxers.
``(b) Appeals Process.--A sanctioning organization shall
establish and publish an appeals procedure that affords a
boxer rated by that organization a reasonable opportunity to
submit information to contest its rating of the boxer. Under
the procedure, the sanctioning organization shall, within 14
days after receiving a request from a boxer questioning that
organization's rating of the boxer--
``(1) provide to the boxer a written explanation of the
organization's criteria and its rating of the boxer; and
``(2) submit a copy of its explanation to the President of
the Association of Boxing Commissions of the United States.
``(c) Notification of Change in Rating.--If a sanctioning
organization changes its rating of a boxer who is included,
before the change, in the top 10 boxers rated by that
organization, then it shall provide a written explanation of
the reasons for its change in that boxer's rating to the
boxer within 14 days after changing the boxer's rating.
``(d) Public Disclosure.--
``(1) FTC filing.--Not later than January 31st of each
year, a sanctioning organization shall submit to the Federal
Trade Commission--
``(A) a complete description of the organization's ratings
criteria, policies, and general sanctioning fee schedule;
``(B) the bylaws of the organization;
``(C) the appeals procedure of the organization; and
``(D) a list and business address of the organization's
officials who vote on the ratings of boxers.
``(2) Format; Updates.--A sanctioning organization shall--
``(A) provide the information required under paragraph (1)
in writing, and, for any document greater than 2 pages in
length, also in electronic form; and
``(B) promptly notify the Federal Trade Commission of any
material change in the information submitted.
``(3) FTC to make information available to public.--The
Federal Trade Commission shall make information received
under this subsection available to the public. The Commission
may assess sanctioning organizations a fee to offset the
costs it incurs in processing the information and making it
available to the public.
``(4) Internet alternative.--In lieu of submitting the
information required by paragraph (1) to the Federal Trade
Commission, a sanctioning organization may provide the
information to the public by maintaining a website on the
Internet that--
``(A) is readily accessible by the general public using
generally available search engines and does not require a
password or payment of a fee for full access to all the
information;
``(B) contains all the information required to be submitted
to the Federal Trade Commission by paragraph (1) in a easy to
search and use format; and
``(C) is updated whenever there is a material change in the
information.''.
(b) Conflict of Interest.--Section 9 of such Act (15 U.S.C.
6308), as amended by section 4 of this Act, is amended by
adding at the end thereof the following:
``(c) Sanctioning Organizations.--
``(1) Prohibition on receipts.--Except as provided in
paragraph (2), no officer or employee of a sanctioning
organization may receive any compensation, gift, or benefit
directly or indirectly from a promoter, boxer, or manager.
``(2) Exceptions.--Paragraph (1) does not apply to--
``(A) the receipt of payment by a promoter, boxer, or
manager of a sanctioning organization's published fee for
sanctioning a professional boxing match or reasonable
expenses in connection therewith if the payment is reported
to the responsible boxing commission under section 17; or
``(B) the receipt of a gift or benefit of de minimis
value.''.
(c) Sanctioning Organization Defined.--Section 2 of the
Professional Boxing Safety Act of 1996 (15 U.S.C. 6301) is
amended by adding at the end thereof the following:
``(11) Sanctioning organization.--The term `sanctioning
organization' means an organization that sanctions
professional boxing matches in the United States--
``(A) between boxers who are residents of different States;
or
``(B) that are advertised, otherwise promoted, or broadcast
(including closed circuit television) in interstate
commerce.''.
SEC. 6. PUBLIC INTEREST DISCLOSURES TO STATE BOXING
COMMISSIONS.
(a) In General.--The Professional Boxing Safety Act of 1996
(15 U.S.C. 6301 et seq.), as amended by section 5 of this
Act, is amended by--
(1) redesignating section 17, as redesignated by section 5
of this Act, as section 18; and
(2) by inserting after section 16 the following:
``SEC. 17. REQUIRED DISCLOSURES TO STATE BOXING COMMISSIONS.
``(a) Sanctioning Organizations.--Before sanctioning a
professional boxing match in a State, a sanctioning
organization shall provide to the boxing commission of, or
responsible for sanctioning matches in, that State a written
statement of--
``(1) all charges, fees, and costs the organization will
assess any boxer participating in that match;
``(2) all payments, benefits, complimentary benefits, and
fees the organization will receive for its affiliation with
the event, from the promoter, host of the event, and all
other sources; and
``(3) such additional information as the commission may
require.
``(b) Promoters.--Before a professional boxing match
organized, promoted, or produced by a promoter is held in a
State, the promoter shall provide a statement in writing to
the boxing commission of, or responsible for sanctioning
matches in, that State--
``(1) a copy of any agreement in writing to which the
promoter is a party with any boxer participating in the
match;
``(2) a statement made under penalty of perjury that there
are no other agreements, written or oral, between the
promoter and the boxer with respect to that match; and
``(3) a statement in writing of--
``(A) all fees, charges, and expenses that will be assessed
by or through the promoter on the boxer pertaining to the
event, including any portion of the boxer's purse that the
promoter will receive, and training expenses; and
``(B) all payments, gift, or benefits the promoter is
providing to any sanctioning organization affiliated with the
event.
``(c) State Boxing Commission to Establish Requirements.--
The boxing commission of each State, or the responsible
boxing commission for a State that has no boxing commission,
shall determine how far in advance of a professional boxing
match the documents described in subsections (a) and (b)
shall be provided to the boxing commission, and may prescribe
such additional requirements relative to the required
submission as may be necessary.
``(d) Information To Be Available to State Attorney
General.--A State boxing commission shall make information
received under this section available to the chief law
enforcement officer of the State in which the match is to be
held upon request.
``(e) Exception.--The requirements of this section do not
apply in connection with a professional boxing match
scheduled to last less than 10 rounds.''.
SEC. 7. ENFORCEMENT.
Section 10 of the Professional Boxing Safety Act of 1996
(15 U.S.C. 6309) is amended by--
(1) inserting a comma and ``other than section 9(b), 15,
16, or 17,'' after ``this Act'' in subsection (b)(1);
(2) redesignating paragraphs (2) and (3) of subsection (b)
as paragraphs (3) and (4), respectively, and inserting after
paragraph (1) the following:
``(2) Violation of anti-exploitation, sanctioning
organization, or disclosure provisions.--Any person who
knowing violates any provision of section 9(b), 15, 16, or 17
of this Act shall, upon conviction, be imprisoned for not
more than 1 year or fined not more than--
``(A) $100,000; and
``(B) if the violations occur in connection with a
professional boxing match the gross revenues for which exceed
$2,000,000, such additional amount as the court finds
appropriate,
or both.''; and
(3) adding at the end thereof the following:
``(c) Actions by States.--Whenever the chief law
enforcement officer of any State has reason to believe that a
person or organization is engaging in practices which violate
any requirement of this Act, the State, as parens patriae,
may bring a civil action on behalf of its residents in an
appropriate district court of the United States--
``(1) to enjoin the holding of any professional boxing
match which the practice involves;
[[Page S7259]]
``(2) to enforce compliance with this Act;
``(3) to obtain the fines provided under subsection (b) or
appropriate restitution; or
``(4) to obtain such other relief as the court may deem
appropriate.
``(d) Private Right of Action.--Any boxer who suffers
economic injury as a result of a violation of any provision
of this Act may bring an action in the appropriate Federal or
State court and recover the damages suffered, court costs,
and reasonable attorneys fees and expenses.''.
____
S. 2238--Summary
protecting boxers from exploitation
(a) Declares that all contracts between boxers and
promoters must be based on a mutuality of obligation, be
reasonable in length and terms, and contain terms specifying
a minimum number of bouts per year for the boxer.
(b) Limits certain ``option'' contracts between boxers and
promoters to one year. (Those where a boxer was required to
provide options to a promoter, as a condition of getting a
particular fight.)
(c) Prohibits promoters and sanctioning bodies from
requiring ``options'' from a boxer who is considered by a
sanctioning body to be the ``mandatory challenger.''
(d) No promoter can require a boxer to hire an associate,
relative, or any other individual, as the boxer's manager, or
in any other employment capacity.
(e) Prohibits conflicts of interest between managers of a
boxer, and the promoter. No promoter can have a financial
interest in the management of a boxer, or vice versa.
sanctioning organization integrity reforms
(a) Sanctioning organizations conducting business in the
U.S. on an interstate basis must establish objective and
consistent criteria for the ratings of professional boxers.
(b) On an annual basis, sanctioning organizations must
provide the following information to the Federal Trade
Commission (or make it publicly available on the
``internet''): (a) their bylaws, ratings criteria, and (b)
roster of officials who vote on their ratings decisions.
(c) When sanctioning organizations change their rating of a
U.S. boxer, the organization must inform the boxer in writing
of the reason for the change.
(d) Each sanctioning organization must establish an appeals
process for boxers in the U.S. to contest their ranking in
writing, and receive a written response from the organization
explaining its decision. Copies of their decision shall be
provided to the ABC.
(d) No sanctioning organization can receive payments or
compensation from a promoter, boxer, or manager, except for
the established sanctioning fee and expenses they receive for
sanctioning a bout, and which are reported to the relevant
State commission.
public interest disclosures to state boxing commissions
(a) Sanctioning organizations must disclose to a state
boxing commission, in advance of the event, all charges and
fees they will impose on the boxer(s) competing in the event.
(b) Sanctioning bodies must also disclose all payments,
fees, and complimentary services they will receive from
promoters, the host of the boxing event, and any other
sources affiliated with the event. Services or benefits of
minor value are excluded.
(c) The promoter and matchmakers affiliated with each event
shall file a complete and accurate copy of all contracts they
have with the boxer pertaining to the event, with the boxing
commission prior to the event, and disclose in writing all
fees, charges, and costs they will assess on the boxer(s).
The promoter shall also disclose all payments and benefits
made to sanctioning organization affiliated with the event.
Promoters of ``club'' boxing events--those bouts of less than
10 rounds--are excluded from these reporting requirements.
(d) Require that disclosures made under this Act to a State
Commission shall be provided upon request to the State
Attorney General's Office, upon request.
enforcement
Civil and Criminal penalties similar to new federal boxing
law, but fines are higher to deter major promoters from
violations. Also, allow enforcement by State Attorney
Generals.
______
By Mr. MURKOWSKI:
S. 2239. A bill to revise the boundary of Fort Matanzas Mounment and
for other purposes; to the Committee on Energy and Natural Resources.
fort matanzas national monument legislation
Mr. MURKOWSKI. Mr. President, on behalf the Administration,
today I introduce legislation to revise the boundary of Fort Matanzas
National Monument, and for other purposes. I ask unanimous consent that
the Administration's letter of transmittal and a section-by-section
analysis of the legislation be printed in the Record for the
information of my colleagues.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Department of Interior,
Office of the Secretary,
Washington, DC, February 23, 1998.
Hon. Albert Gore, Jr.,
President of the Senate,
Washington, DC.
Dear Mr. President: Enclosed is a draft of a bill, ``to
revise the boundary of Fort Matanzas National Monument, and
for other purposes.'' Also enclosed is a section-by-section
analysis of the bill. We recommend that the bill be
introduced, referred to the appropriate committee for
consideration, and enacted.
The enclosed bill would revise the boundary of Fort
Matanzas National Monument in Florida to clarify long-
standing boundary and acquisition issues involving a total of
approximately 70 acres. The first issue involves two tracts
of land, 01-102 and 01-103 which are currently adjacent to
the park's boundary. These two tracts were donated to the
United States in 1963 and 1965. At the time of the donations,
no attempt was made to seek authority to include these tracts
within the park's boundary.
The second issue involves Tract 01-107, which was
originally intended to be donated as part of Tract 01-102 on
January 1, 1965. However, a regional Solicitor's opinion of
September 14, 1984, indicated that an error in the legal
description omitted this tract and the United States does not
hold title to this parcel.
The purpose of this bill is to include the three tracts
within the boundary of Fort Matanzas National Monument. This
would ensure that the National Park Service could legally
protect the resources on the tracts and ensure visitor
safety.
The Office of Management and Budget has advised that there
is no objection to the enactment of the enclosed draft
legislation from the standpoint of the Administration's
program.
Sincerely,
Donald Barry,
Acting Assistant Secretary for
Fish and Wildlife and Parks.
____
Section-by-Section Analysis
Section 1 of this legislation revises the boundary of Fort
Matanzas National Monument in Florida by adding three small
tracts of land totaling approximately 70 acres. The boundary
adjustments are depicted on the map entitled ``Fort Matanzas
National Monument'', numbered 347/80004, and dated February
1991.
Section 2 authorizes the Secretary to acquire the lands by
donation, purchase, transfer or exchange.
Section 3 states that the lands will be administered as
part of Fort Matanzas National Monument and will be subject
to the laws that are applicable to the monument.
______
By Mr. MURKOWSKI:
S. 2240. A bill to establish the Adams National Historical Park in
the Commonwealth of Massachusetts, and for other purposes; to the
Committee on Energy and Natural Resources.
admas national park legislation
Mr. MURKOWSKI. Mr. President, on behalf of the Administration,
today I introduce legislation to establish the Adams National
Historical Park in the Commonwealth of Massachusetts and for other
purposes.
I ask unanimous consent that the Administration's letter of
transmittal and a section-by-section analysis of the legislation be
printed in the Record for the information of my colleagues.
There being no objection, the items were ordered to be printed in the
Record, as follows:
Department of the Interior,
Office of the Secretary,
Washington, DC. February 23, 1998.
Hon. Albert Gore, Jr.
President of the Senate, Washington, DC.
Dear Mr. President: Enclosed is a draft bill ``To establish
the Adams National Historical Park in the Commonwealth of
Massachusetts and for other purposes.''
We recommend the bill be introduced, referred to the
appropriate committee, and enacted.
The legislation would establish the Adams National
Historical Park in Quincy, Massachusetts. Currently the
proposed Adams National Historical Park is designated as a
National Historic Site. It was established by Secretarial
Order in 1935 based on the Historic Sites Act. It was
expanded in 1952 again by Secretarial Order. In 1972, 1978
and 1980, Congress added more acreage to the site and
authorized the addition of two separate properties to the
historic site. The continued expansion of the historic site
with the addition of separate properties all focused on the
life and history of John Adams, Abigail Adams, John Quincy
Adams, and their descendants, qualifies the existing National
Park System unit for designation as a national historical
park.
The legislation would authorize the acquisition of ten
additional acres for development of visitor and
administrative facilities to protect the historical setting
and integrity of the historical park. The legislation directs
that the historical park be managed in accord with the laws
applicable to units of the National Park System, in
particular the National Park Service Organic Act of 1916 and
the Historic Sites Act of 1935. The legislation also provides
specific cooperative
[[Page S7260]]
agreement authority to the historical park to work with
outside entities and individuals on the preservation,
development, interpretation, and use of the site.
The redesignation of Adams National Historic Site to Adams
National Historical Park is the important recognition that
the collection of sites in Quincy, Massachusetts, related to
the lives of John Adams, 2nd President of the United States,
his wife Abigail and their descendants, including their son,
John Quincy Adams, 6th President of the United States,
properly deserves. The authorities for land acquisition and
cooperative agreements are critical for the successful
protection, development, interpretation and use of the Adams
National Historical Park.
The Office of Management and Budget has advised that there
is no objection to the enactment of the enclosed draft
legislation from the standpoint of the Administration's
program.
Sincerely,
Donald Barry,
Acting Assistant Secretary for
Fish and Wildlife and Parks.
____
Section-by-Section Analysis--Adams National Historical Park
Section 1.--Provides a short title for the Act--``Adams
National Historical Park Act of 1998.''
Section 2. (a) Findings.--Provides the references including
Secretarial Orders and Public Laws which created the Adams
National Historic Site in Quincy, Massachusetts and expanded
it from a single site to three separate sites in Quincy plus
additional acreage at the original site. No single piece of
legislation or Executive Order provides overarching authority
or guidance for managing the multiple sites.
Section 2. (b) Purpose.--States the purpose of the
legislation, to establish the ``Adams National Historical
Park.''
Section 3.--Provides definitions.
Section 4.--Establishes the boundary of the historical park
which is made up of the properties currently owned by the
National Park Service and managed as part of the Adams
National Historic Site or property identified in Executive
Orders or Public Laws related to Adams National Historic Site
that are to be acquired or conveyed to the National Park
Service for inclusion in the historic site but that have not
yet been acquired or conveyed. Also provides for the
acquisition of up to ten additional acres for the development
of administrative and visitor services.
Section 5.--Provides the authorities under which the
historical park is to be administered, including cooperative
agreement authority.
Section 6.--Authorities that funds necessary for the
development, operation, and maintenance of the park be
provided.
______
By Mr. MURKOWSKI:
S. 2241. A bill to provide for the acquisition of lands formerly
occupied by the Franklin D. Roosevelt family at Hyde Park, New York,
and for other purposes; to the Committee on Energy and Natural
Resources.
franklin d. roosevelt family historic site legislation
Mr. MURKOWSKI. Mr. President, on behalf of the Administration,
today I introduce legislation to provide for the acquisition of lands
formerly occupied by the Franklin D. Roosevelt family at Hyde Park, New
York, and for other purposes.
I ask unanimous consent that the Administration's letter of
transmittal and a section-by-section analysis of the legislation be
printed in the Record for the information of my colleagues.
There being no objection, the material was ordered to be printed in
the Record, as follows:
U.S. Department of the Interior,
Office of the Secretary,
Washington, DC, May 26, 1998.
Hon. Albert Gore Jr.,
President of the Senate,
Washington, DC.
Dear Mr. President: Enclosed is a draft bill ``To provide
for the acquisition of lands formerly occupied by the
Franklin D. Roosevelt family at Hyde Park, New York, and for
other purposes.''
We recommend the bill be introduced, referred to the
appropriate committee, and enacted.
The purpose of the legislation is to allow the Secretary of
the Interior to acquire lands and interests therein that were
owned by Franklin Delano Roosevelt or his family at the time
of his death, as depicted on the map referenced in the bill,
by means of purchase using appropriated or donated funds, by
donation, or exchange. The lands would be added to and
managed as part of the Home of Franklin D. Roosevelt National
Historic Site or the Eleanor Roosevelt National Historic
Site.
This would expand the current acquisition authority at the
Home of Franklin D. Roosevelt National Historic Site.
Currently the Secretary's authority to acquire land owned by
FDR or his family at the time of his death is by means of
donation only. The National Park Service's priority at the
site would continue to be land acquisition by donation. With
regard to the property where Roosevelt's Top Cottage is
situated, the National Park Service would acquire such
property by donation only. This bill, upon enactment, would
allow the use of appropriated funds for purchase of lands
where donation is infeasible.
The Office of Management and Budget has advised that there
is no objection to the enactment of the enclosed draft
legislation from the standpoint of the Administration's
program.
Sincerely,
Donald Barry,
Acting Assistant Secretary for
Fish and Wildlife and Parks.
Section-by-Section Analysis--Franklin Delano Roosevelt National
Historic Site/Eleanor Roosevelt National Historic Site
Section 1. Provides the Secretary of the Interior authority
to acquire lands and/or interests in lands owned by Franklin
Delano Roosevelt or his family at the time of his death. The
property may be acquired by purchase using donated or
appropriated funds, by donation or otherwise. This revises
current authority that only allows acquisition by donation.
Section 2. States that any land acquired will be
administered as part of the Home of Franklin D. Roosevelt
National Historic Site or as part of the Eleanor Roosevelt
National Historic Site, as appropriate.
Section 3. Provides authority for funds to be appropriated
to carry out the Act.
______
By Mr. DeWINE (for himself, Mr. Grassley, Mr. Kohl, Mr. Abraham,
Mr. Sessions, and Mr. Coverdell):
S. 2242. A bill to amend the Controlled Substances Import and Export
Act to place limitations on controlled substances brought into the
United States from Canada and Mexico; to the Committee on the
Judiciary.
Controlled Substances Import and Export Act Amendments
Mr. DeWINE. One of the key priorities for America today is protecting
our young people from drugs. We need to stay on the lookout for new and
different ways that we can make even a small difference in this
important fight. This morning, along with Senators, Grassley, Kohl,
Abraham, Sessions, and Coverdell, I am introducing a bill that is
neither monumental in approach nor grandiose in scope--but it will
break on of the links in the chain of the drug trade.
There is now a loophole in Federal law that permits large quantities
of a certain class of drugs known as controlled substances to pour into
our country at an alarming rate. Included among these are some
dangerous hallucinogenics and so-called date-rape drugs.
The reason for this current loophole is that, under present law, an
individual is permitted to transport a 90-day supply of a controlled
substance into the United States. By ``controlled substance'' we mean a
substance that is either banned or regulated by the Drug Enforcement
Agency. This ``personal use exception,'' as it is called, is well
intentioned. It was created to allow Americans who become ill or
injured abroad to carry their necessary medication back to the United
States. I want to emphasize that this bill would by no means end that
very legitimate practice. That is not our intention at all. However,
this legislation would stop the blatant exploitation of that exemption
which is allowing some drug traffickers to operate freely in the United
States.
Let me explain. Specifically, these narcotics are being legally
purchased in another country without any sort of documentation of
medical need, then brought across our border, and then illegally sold
on our streets in this country. By closing this loophole, we will
empower our law enforcement to stop what amounts to nothing more than
another form of drug trafficking in the United States.
The remedy we seek today is both effective and sensible. It would
limit the amount of these controlled substances that can be carried
back to the United States by Americans to 50 doses. According to the
DEA, that is about a 2-week supply, enough time to go get a new
prescription before running out of that medication.
I would also like to note some things that this legislation will not
do, so we can explain it very clearly to Members. It will not change
the law with respect to noncontrolled prescription drugs, drugs such as
insulin or Premarin, and it would not affect the ability of people to
obtain drugs to treat heart disease or cancer or AIDS or other serious
illnesses, because these medication are not on the Controlled
Substances List at all. I also indicate to my colleagues
[[Page S7261]]
that there is support for this among the Office of National Drug
Control Policy, the Drug Enforcement Administration, U.S. Customs--they
all support this approach. They recognize the problem and would like to
see it resolved.
Let me again emphasize, this legislation is not complex. All we are
really doing is closing a loophole to stop this illegal trafficking of
controlled substances in the United States. If we are really going to
make drug interdiction a priority, then it makes a great deal of sense
to take this relatively small but effective and meaningful step. We
need to take this step today.
Before closing, I would like to compliment my friend and colleague
from the State of Ohio, Congressman Steve Chabot, from Cincinnati, who
has shown great leadership on this issue, and many issues. It was
through his active and tireless efforts in raising the profile on this
issue that I was first made aware of the problem. I look forward to
work with him and my other colleagues on this very important new
initiative. It is my hope the Senate will act quickly and decisively to
approve this very commonsense piece of legislation.
Mr. President, in conclusion, I ask unanimous consent a recent
article that appeared in USA Today entitled ``Medications from Mexico''
that explains this and illustrates the problem be printed in the
Record.
There being no objection, the article was ordered to be printed in
the Record, as follows:
Medications From Mexico
(By Tim Friend)
Millions of tablets of prescription sedatives, amphetamines
and narcotic painkillers are being brought into the U.S. from
Mexico, and most appear destined for recreational use or sale
on the street, a new study shows.
The 12-month study of U.S. Customs declaration forms
suggests serious abuse of federal laws that permit
individuals to buy prescription drugs in Mexico and bring
them back for personal use, the authors say.
It also suggests U.S. Customs enforcement of controlled
substances at the border at Laredo, Texas, is limited.
``It is remarkable what is being brought back across the
border,'' says Marvin Shepherd of the College of Pharmacy at
the University of Texas at Austin. ``It's a prescription mill
down there.''
Shepherd set out to determine how many prescription drugs
elderly people are buying in Mexico because of the cheaper
prices. The study was funded by the National Association of
Chain Drug Stores and the Texas Pharmacy Association. They
were concerned that unapproved drugs were entering the U.S.
and that many elderly were skirting safeguards provided by
U.S. pharmacies.
Shepherd says he and the study sponsors were shocked to
learn that drugs declared by people over age 50 accounted for
only 9.4% of 5,624 claims. The median age of men purchasing
drugs was 24 and of women it was 35.
In some cases, individuals declared as many as 25 bottles
of Valium containing 90 pills each and 29 boxes of Percodan
containing 10 pills each.
Most people declaring the drugs obtained prescriptions in
Nuevo Laredo from Mexican doctors' offices, usually for $20
to $30, without seeing a doctor.
Federal law permits prescriptions written and filled in
Mexico to pass through customs, says Judy Turner, U.S.
Customs spokeswoman. However, the policy is to allow only a
90-day supply of drugs.
``They do see a huge amount of Valium in Laredo,'' says
Turner. ``But it's possible people are declaring large
amounts of drugs and that agents are not permitting them to
keep more than the limit.''
Customs records show agents at Laredo seized 330,089
tablets of Valium and 14 other drugs in 1995. But Shepherd
estimates from June 1994 to July 1995, 8.7 million tablets of
the top 15 drugs were brought into the U.S. from Nuevo
Laredo.
Kristin McKeithan, who collected data for the study, says
agents sometimes enforce limits on the drugs and at other
times allow individuals to bring in large quantities.
``When a person came through it was a really random
process,'' McKeithan says.
Leticia Moran, port director for U.S. Customs at Laredo,
says the situation there is complicated by large numbers of
people crossing the border.
``There is no way my officers would allow someone to bring
in 25 boxes of Valium,'' Moran says. But on Saturdays, 25,000
people visit Nuevo Laredo. It is impossible for customs to
check everyone, she says. People will get through with more
drugs than are allowed.
Ronald Ziegler, president of the chain drug association,
says the amounts of drugs many individuals were declaring far
exceed amounts considered medically appropriate.
``The study cries out with the potential for abuse in
almost every section,'' says Ziegler. ``You can imagine that
if you take this from one border and expand it to other
border crossings across the state, it's quite profound.
Within this system, something has gone haywire.''
______
By Mr. CHAFEE (for himself, Mr. Kempthorne, Mr. Baucus, Mr. Allard, Mr.
Daschle, Ms. Collins, Mr. Graham, Mrs. Feinstein, Mr. Jeffords, Mr.
Smith of Oregon, Mr. D'Amato, Mr. Faircloth, Mr. Bond, Mr. DeWine, and
Mr. Smith of New Hampshire):
S. 2244. A bill to amend the Fish and Wildlife Act of 1956 to promote
volunteer programs and community partnerships for the benefit of
national wildlife refugees, and for other purposes; to the Committee on
Environment and Public Works.
national wildlife refuge systems volunteer and partnership enhancement
act
Mr. CHAFEE. Mr. President, I am extremely pleased to introduce
a bill that has tremendous potential to improve management and
operations of the National Wildlife Refuge System. This bill--the
National Wildlife Refuge System Volunteer and Partnership Enhancement
Act-- will supplement scarce Federal dollars with outside services and
donations by local groups and individuals. I am joined by 13 of our
colleagues on both sides of the aisle, including Senators Kempthorne,
Baucus, Allard, Daschle, Collins, Graham, Feinstein, Jeffords, Gordon
Smith, D'Amato, DeWine, Bond, and Faircloth.
The National Wildlife Refuge System consists of 93 million acres in
513 units. This is the land set aside by the Federal Government to
protect fish and wildlife. The Refuge System historically has received
less funding acre-for acre than its larger and older sibling, the
National Park System. Despite the recent passage of the National
Wildlife Refuge System Improvement Act of 1997, the refuge system
remains poorly funded, and has a significant backlog of construction
and maintenance projects totaling approximately $1 billion.
As budgets continue to shrink, the Federal Government must look at
alternative sources of funding and assistance. Volunteer services have
long helped the Refuge System, and are becoming increasingly important
as a means of supplement decreasing Federal dollars. Indeed, the very
first refuge on Pelican Island, Florida, was staffed by volunteer
wardens. Since 1982, when the Fish and Wildlife Service (FWS)
established a formal volunteer program, the program has grown from
4,251 volunteers donating 128,440 hours of time to 25,000 volunteers
donating more than one million hours in 1996. This 1996 figure
represents almost 20 percent of all work done by the FWS on the Refuge
System, amounting to about $11 million worth of services, compared with
a cost of $1.7 million for maintaining the volunteer program.
The five refuges in my own state of Rhode Island, which are managed
as a single complex, provide a wonderful illustration of how important
these effort are. Last year, volunteers donated 4,500 hours of service
to Rhode Islands refuges. With only five full-time employers working
among the five Rhode Island refuges, volunteers contributed 36 percent
of all work performed on these refuges. At several of our refuges, the
typical visitor often will only interact with volunteer staff.
The ``National Wildlife Refuge System Vounterer and Partnership
Enhancement Act'' lends must needed support to the efforts of the FWS
to maintain and operate the Refuge System. This bill will accomplish
four goals: (1) encourage financial contributions and donations to
refuges; (2) increase opportunities and incentives for volunteers on
refuges; (3) promote community partnerships with local refuges; and (4)
establish a refuge education program to use refuges as ``outdoor
classrooms.''
Mr. President, let me give you some of the highlights in the bill.
Section 3 of the bill allows gifts and donations to be made to
individual refuges without further appropriations. While this is
similar to current law, the bill provides new authority for the FWS to
match these gifts. This will allow refuge managers to leverage the
precious few dollars over which they have discretion for operations and
maintenance with money from local residents and groups.
Section 4 directs the FWS to carry out a pilot project at 2 or more
refuges in each region, but no more than 20 nationwide, to hire a
volunteer coordinator for the refuge. This coordinator
[[Page S7262]]
will manage and supervise the volunteers, and service as the liaison
between the volunteers, the partnership organizations, and the refuge.
It also establishes a Senior Volunteer Corps for individuals 50 years
or older. These older citizens comprise the majority of volunteer
efforts throughout the refuge system. This new Corps will recognize and
foster that effort.
Section 5 provides for community partner organizations to enter into
agreements with the FWS to implement projects consistent with the
purposes of the refuge. The projects may improve habitat, support
operations, promote educational materials, or encourage donations. Non-
Federal funding may be matched by the FWS. Section 6 directs the
Secretary of the Interior to develop guidance for education programs
that promotes understanding of refuge resources, improves scientific
literacy, and provides outdoor classroom experiences. It also
authorizes the Secretary to develop or enhance refuge education
programs based on this guidance.
This bill is similar to a House bill, H.R. 1856, introduced by
Congressman Saxton on June 10, 1997, and subsequently passed by the
House. I have been pleased to work with Congressman Saxton on this
wonderful initiative, and I urge all of our colleagues to support
it.
Mr. BAUCUS. Mr. President, I am pleased to join my colleague
Senator Chafee, the Chairman of the Senate Environment and Public Works
Committee, in introducing the National Wildlife Refuge System Volunteer
and Partnership Enhancement Act of 1998.
This bill will promote volunteerism on our national wildlife refuges.
By encouraging volunteers to work with the U.S. Fish and Wildlife
Service to improve our national wildlife refuges, this bill will not
only benefit fish and wildlife but enhance the outdoor recreation and
education experience for thousands of visitors.
The National Wildlife Refuge System is a sanctuary for our nation's
fish and wildlife, many species of which are threatened or endangered.
It is a sanctuary for people too, who use refuges for many purposes.
Comprising some 93 million acres spread across the country in over 500
individual refuges, the system is an invaluable natural resource.
To ensure that the resource is conserved for future generations of
Americans, the Congress recently enacted legislation to guide the
management of the National Wildlife Refuge System. But even improved
management cannot make up for the lack of money. The refuge system is
underfunded. Without adequate financial and staff resources, we will
not realize the full potential of the refuge system, as envisioned by
the National Wildlife Refuge System Improvement Act of 1997.
One way to address this need is through the use of volunteers,
ordinary citizens who care enough about our refuges to contribute their
time.
To encourage volunteers to take a more active role in improving our
wildlife refuges, this bill would authorize the Secretary of the
Interior to enter into cooperative agreements with partner
organizations to undertake conservation and education projects. In
addition, the bill would authorize the Secretary to develop refuge
education programs and provide for staff to assist partner
organizations and coordinate volunteer activities.
Mr. President, I believe that this is a good bill and that it
deserves our support. It will benefit fish and wildlife, provide unique
opportunities for citizens to donate their valuable time and expertise
to refuges in their local communities, and enhance the refuge
experience for the many people who visit our refuges each year.
I intend to work closely with my colleague, Senator Chafee, and other
members of our Committee, to help ensure that it is enacted this
year.
______
By Mr. LAUTENBERG:
S. 2245. A bill to require employers to notify local emergency
officials, under the appropriate circumstances, of workplace
emergencies, and for other purposes; to the Committee on Labor and
Human Resources.
industrial emergency notification act of 1998
Mr. LAUTENBERG. Mr. President, I introduce the Industrial
Emergency Notification Act of 1998. The bill will require the U.S.
Occupational Safety and Health Administration (OSHA) to require that
employers notify local emergency officials, like police and fire
departments, in the event of workplace emergencies. Passage of this
bill will help prevent accidents such as the explosion that took the
lives of five men three years ago at Napp Technologies in Lodi, New
Jersey.
One mark of our progress as a society is the extent to which we can
guarantee every working man and woman a safe, healthy workplace. No one
should have to risk their health and safety to make a decent living.
Sadly, the Napp explosion showed us how far we have to go.
Among other things, the Napp explosion showed the loopholes that
exist in current OSHA regulations. On the day of the explosion, after
the chemical mixture started smoking, Napp management clearly knew they
had a chemical emergency on their hands, yet they ordered the
evacuation by word of mouth rather than by alarm, resulting in a lack
of notification to the fire department. Then, still without notifying
local emergency officials, which even common sense would have dictated,
they sent the workers back in to their deaths. After all this, one
would think OSHA would have had the basis for a strong enforcement
action against Napp. Yet after the explosion, OSHA officials were
unable to cite Napp for not contacting local emergency officials
because there was no clear enforceable requirement to do so.
Current OSHA standards on workplace emergencies and emergency
response require employers to coordinate with local response
authorities, leaving the final decision for notification to employers'
discretion--rather than specifying clear minimum criteria for
notification. The compliance directive recently released by OSHA on
this standard elaborates on this requirement, but fails to close this
gap.
The Industrial Emergency Notification Act of 1998 will require OSHA
to require that employers notify local emergency officials in the event
of workplace emergencies. OSHA shall specify, as appropriate, the
circumstances under which emergency notification is required, such as
workplace evacuation. Also, the legislation will codify OSHA's recent
compliance directive, which requires employers to develop emergency
response procedures in cooperation with local emergency officials.
It is both possible and important to list the circumstances under
which local emergency officials should be notified, rather than leaving
such notification to the discretion of a potentially harried business
manager. Also it is vital that OSHA's authority include the ability to
take appropriate enforcement action against negligence, after
inadequate notification and the resulting workplace injuries or deaths.
Finally, in addition to the importance of this legislation in improving
workplace safety, to the extent that local emergency officials can help
control the chemical releases associated with workplace emergencies,
this legislation will provide important environmental protection
benefits as well.
The bill is endorsed by the American Federation of Labor, Congress of
Industrial Organizations, the Union of Needletrades, Industrial and
Textile Employees, the Oil, Chemical and Atomic Workers International
Union, the International Chemical Workers Union Council of the United
Food and Commercial Workers, the International Union of Operating
Engineers, the Environmental Defense Fund, and the U.S. Public Interest
Research Group.
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. 2245
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 ``Industrial Emergency
Notification Act of 1998.''
SEC. 2. NOTIFICATION OF EMERGENCY OFFICIALS.
(a) Notwithstanding any other provision of law, the
Occupational Safety and Health Administration shall issue as
a final rule, not later than 18 months of the enactment of
this act, a regulation that requires employers to:
(1) notify outside emergency responders when the conditions
and circumstances
[[Page S7263]]
occur which require outside emergency response, including
workplace evacuations and other conditions specified in the
rule;
(2) describe with specificity in their emergency response
plans developed under 29 CFR 1919.120 or 1926.65, or in their
emergency action plans under 29 CFR 1910.38, the conditions
and circumstances that require outside emergency response in
addition to those specified under paragraph (1); and
(3) obtain the agreement, in writing, of the outside
responders as to which conditions and circumstances require
outside response in addition to those specified under
paragraph (1).
______
By Mr. MURKOWSKI:
S. 2246. A bill to amend the Act which established the Frederick Law
Olmsted National Historic Site, in the commonwealth of Massachusetts,
by modifying the boundary and for other purposes; to the Committee on
Energy and Natural Resources.
frederick law Olmsted national historic site legislation
Mr. MURKOWSKI. Mr. President, on behalf of the Administration,
today I introduce legislation to amend the Act which established the
Frederick Law Olmstead National Historic Site, in the commonwealth of
Massachusetts, by modifying the boundary and for other purposes.
I ask unanimous consent that the Administration's letter of
transmittal and a section-by-section analysis of the legislation be
printed in the Record for the information of my colleagues.
There being no objection, the items were ordered to be printed in the
Record, as follows:
Department of the Interior,
Office of the Secretary,
Washington, DC, September 22, 1997.
Hon. Albert Gore, Jr.,
President of the Senate, Washington, DC.
Dear Mr. President: Enclosed is a draft bill ``To amend the
Act which established the Frederick Law Olmsted National
Historic Site, in the Commonwealth of Massachusetts, by
modifying the boundary and for other purposes.''
We recommend the bill be introduced, referred to the
appropriate committee, and enacted. The purpose of the
legislation is to allow the Secretary of the Interior to
acquire, by donation only, lands owned by the Brookline
Conservation Land Trust which are situated adjacent to the
historic site. These lands remain much as they were during
Olmsted's life and acquisition will help preserve the setting
of the historic site. The Brookline Conservation Land Trust
desires to donate the property to the National Park Service
to help preserve the setting of the historic site and to make
it available for educational purposes.
The Office of Management and Budget has advised that there
is no objection to the enactment of the enclosed draft
legislation from the standpoint of the Administration's
program.
Sincerely,
Donald J. Barry,
Acting Assistant Secretary for Fish
and Wildlife and Parks.
Enclosures.
____
Section-by-Section Analysis--Frederick Law Olmsted National Historic
Site
Amends the Act of October 12, 1979, which originally
established the historic site, by providing the Secretary of
the Interior authority to acquire lands adjacent to the
historic site. The lands may be acquired only by means of
donation from a private land trust. The land trust wishes to
donate the subject property to the historic site to help
preserve and maintain the historic setting of the
site.
______
By Mr. MURKOWSKI:
S. 2247. A bill to permit the payment medical expenses incurred by
the U.S. Park Police in the performance of duty to be made directly by
the National Park Service, and for other purposes; to the Committee on
Energy and Natural Resources.
U.S. Park Police Legislation
Mr. MURKOWSKI. Mr. President, on behalf of the Administration, today
I introduce legislation to permit the payment of medical expenses
incurred by the United States Park Police in the performance of duty to
be made directly by the National Park service, and for other purposes.
I ask unanimous consent that the Administration's letter of
transmittal and a section-by-section analysis of the legislation be
printed in the Record for the information of my colleagues.
There being no objection, the items were ordered to be printed in the
Record, as follows:
U.S. Department of the Interior,
Office of the Secretary,
Washington, DC, March 11, 1998.
Hon. Albert Gore, Jr.,
President of the Senate,
Washington, DC.
Dear Mr. President: Enclosed is a draft bill, ``to permit
the payment of medical expenses incurred by the U.S. Park
Police in the performance of duty to be made directly by the
National Park Service, and for other purposes.''
We recommend the bill be introduced, referred to the
appropriate committee for consideration, and enacted.
The District of Columbia (District) is currently charged
with paying all medical bills for services rendered for
National Park Police members who become injured or ill in the
performance of their duties. Subsequently, the National Park
Service reimburses the District for medical payments made on
behalf of the Park Police. Fiscal constraints experienced by
the District have resulted in untimely payments of these
expenses. Consequently, some Park Police members have been
denied treatment and others have had their credit ratings
adversely affected. This situation is untenable. It
compromises the law enforcement capability of the Park Police
and places an undue burden on Park Police employees. the
enclosed draft legislation would amend the Act of September
1, 1916, section 12(e), to allow the National Park Service to
make these payments directly to the medical providers.
Amended language is urgently needed. We respectfully request
that this draft legislation be expedited.
The Office of Management and Budget has advised that there
is no objection to the enactment of the enclosed draft
legislation from the standpoint of the Administration's
program.
Sincerely,
Donald Barry,
Acting Assistant Secretary for
Fish and Wildlife and Parks.
____
Section-by-Section Analysis
This bill amends the Act of September 1, 1916, section
12(e), to allow the National Park Service to pay medical
providers directly for expenses incurred by the U.S. Park
Police while on official duty.
______
By Mr. MURKOWSKI:
S. 2248. A bill to allow for waiver and indemnification in mutual law
enforcement agreements between the National Park Service and a state or
political subdivision, when required by state law, and for other
purposes; to the Committee on Energy and Natural Resources.
national park service legislation
Mr. MURKOWSKI. Mr. President, on behalf of the Administration,
today I introduce legislation to allow for wavier and indemnification
in mutual law enforcement agreements between the National Park Service
and a state or political subdivision, when required by state law, and
for other purposes.
I ask unanimous consent that the Administration's letter of
transmittal and a section-by-section analysis of the legislation be
printed in the Record for the information of my colleagues.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Department of the Interior,
Office of the Secretary,
Washington, DC, March 18, 1998.
Hon. Albert Gore, Jr.
President of the Senate,
Washington, DC.
Dear Mr. President: Enclosed is a draft bill, ``To allow
for waiver and indemnification in mutual law enforcement
agreements between the National Park Service and a state or
political subdivision, when required by state law, and for
other purposes.''
We recommend the bill be introduced, referred to the
appropriate committee for consideration, and enacted.
This amendment would provide express authority for the
National Park Service to enter into mutual aid agreements
with adjacent law enforcement agencies. Pursuant to statutory
authorities, the Park Police have maintained memoranda of
understandings with local law enforcement agencies in
Maryland and Virginia. These agreements specify the
circumstances under which these agencies will assist the Park
Police. Both Maryland and Virginia laws require that each
party must agree to indemnify and hold harmless the assisting
agency from all claims by third parties for property damage
or personal injury, which may arise out of the assisting
agency's activities outside its respective jurisdiction.
The Comptroller General issued a decision on August 16,
1991, which stated that such indemnification clauses violate
the Anti-deficiency Act (31 U.S.C. 1341(a)). The Comptroller
General stated:
``[O]pen-ended indemnification agreements should not be
entered into regardless of the existence of language of
limitations except with express congressional acquiesence. .
. . Thus we recommend that the Park Police obtain
congressional approval for this type of arrangement.''
The Comptroller General further recognized the importance
of memoranda of understandings between the Park Police and
local authorities for effective law enforcement, and stated,
``. . . we will not object to the Park Police temporarily
entering into revised agreements with the required
indemnification clauses while congressional approval is being
sought.''
Although the opinions of the Comptroller General are not
binding on Executive Branch
[[Page S7264]]
departments, they often provide useful guidance on
appropriations matters and related issues. Because it raises
questions as to Interior's indemnification authority, the
Comptroller General's opinion may impede Interior's efforts
to maintain intergovernmental cooperation in the policing of
national parks. The amendment that we have proposed would
eliminate this potential impediment.
The Office of Management and Budget has advised that there
is no objection to the enactment of the enclosed draft
legislation from the standpoint of the Administration's
program.
Sincerely,
Donald Barry,
Acting Assistant Secretary for
Fish and Wildlife and Parks.
____
Section-by-Section Analysis
Section 1: This section renumbers paragraphs and adds a new
section c(3), which would provide express statutory authority
for the National Park Service to use indemnification clauses
in their mutual aid agreements with a state or political
subdivision for law enforcement purposes, when required by
state law.
Section 2: This section makes a technical
correction.
______
By Mr. DASCHLE (for himself, Mrs. Boxer, Mr. Kennedy, Mr.
Bingaman, Ms. Moseley-Braun, Mr. Rockefeller, Ms. Mikulski, Mr.
Reid, Mr. Durbin, Mr. Inouye, and Mr. Torricelli):
S. 2249. A bill to provide retirement security for all Americans; to
the Committee on Finance.
Retirement Accessibility, Security and Portability Act of 1998
Mr. DASCHLE. Mr. President, today, Democrats are offering identical
bills in the House and the Senate--the ``Retirement Accessibility,
Security and Portability Act of 1998''--to make the prospect of
retirement less frightening for millions of American workers. Right
now, just under half of all American workers have pension plans, and
the number is far worse for women and low- and moderate-income workers.
Our plan would increase the number of Americans with pensions by
making it easier and cheaper for small businesses to set up pension
funds. It would create a new system to help workers who have no pension
coverage to build their own retirement savings through direct
contributions from their paychecks into an IRA.
Our plan would make it easier for workers to take their pensions with
them from one job to the next. This is incredibly important in an
economy where the average worker will change careers an average of 7
times.
Our plan would increase pension security to ensure retirees will
actually have a pension when they leave the work force. And, it would
help close the huge pension gap that now exists between men and women
and that leaves far too many older women who are widowed or divorced
living in near-poverty.
Mr. President, I talk frequently to people all the time who are
worried they won't be able to afford the ``luxury'' of retirement. I
say, we can't afford the luxury of ignoring the coming retirement
crisis. Retirement shouldn't mean an economic freefall. And it doesn't
have to.
The first of the baby boomers turns 50 this year. We still have time
to make the changes that will allow us to enjoy a secure retirement.
But it will take change from individuals, employers and from the
government.
That's what this bill provides.
This bill would expand pension coverage and access to more Americans
by establishing an easy-to-administer defined benefit plan option for
small businesses known as the SMART Plan; providing a maximum credit of
$1,000 to help small business cover the cost of setting up new pension
plans; and modifying new rules for the ``SIMPLE'' and 401(k) plans to
encourage the provision of pensions to low-to-moderate income
employees.
This bill would encourage pension portability by requiring faster
vesting of employers' matching contributions under defined contribution
plans, including 401(k) plans, so that employees would have rights to
the contributions after the least 3 years of employment; allowing
rollovers between 401(k) and similar plans set up by non-profit
organizations, including 403(b) plans; and allowing participants in
plans set up by state and local governments to roll over their account
balances to IRAs.
This bill would protect and strengthen pensions by establishing
greater safeguards to prevent corporations from raiding their
employees' pension plans; creating stricter requirements for audits of
plan assets and how companies are investing these assets; prohibiting
employers from making credit card loans against pension assets; and
providing pension plan participants with regular and informative
benefit statements so they can monitor the activity and value of their
pension assets.
In addition, this bill would reduce the wide gap in pension coverage
between men and women, as well as provide greater protections for older
women by creating new safeguards to ensure that pension benefits are
not overlooked when a couple divides assets upon divorce; a new option
for federal workers to provide a greater benefit for women who outlive
their husbands; protections for low-income women against the loss of
their Social Security benefits; a new women's pension information
hotline; and a requirement that additional hours taken under the Family
and Medical leave Act are credited to one's pension plan for purposes
of participation and vesting in their plan benefits.
In 1994, President Clinton signed a bill protecting the pensions of
more than 40 million American workers and retirees against risky
investments and corporate raids. In 1996, he signed additional
legislation cutting red tape and start-up costs for pension plans, so
more small businesses could create retirement plans for their workers.
Before 1998 is over, we intend to give the President another
retirement security bill to sign.
This Congress has done precious little so far to address the concerns
of America's working families. passing this bill--increasing Americans'
retirement security--would do a lot to fill that void. We urge our
Republican colleagues to join us in passing it.
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. 2249
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 ``Retirement Accessibility,
Security and Portability Act of 1998''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--PENSION ACCESS AND COVERAGE
Sec. 100. Amendment of 1986 Code.
Subtitle A--Improved Access to Individual Retirement Savings
Sec. 101. Credit for pension plan startup costs of small employers.
Sec. 102. Exclusion for payroll deduction contributions to IRAs.
Sec. 103. Nonrefundable tax credit for contributions to individual
retirement plans.
Sec. 104. Distributions from certain plans may be used without penalty
during periods of unemployment.
Subtitle B--Secure Money Annuity or Retirement (SMART) Trusts
Sec. 111. Secure money annuity or retirement (SMART) trusts.
Subtitle C--Improved Fairness in Retirement Plan Benefits
Sec. 121. Amendments to SIMPLE retirement accounts.
Sec. 122. Nondiscrimination rules for qualified cash or deferred
arrangements and matching contributions.
Sec. 123. Definition of highly compensated employees.
Sec. 124. Treatment of multiemployer plans under section 415.
Sec. 125. Exemption of mirror plans from section 457 limits.
Sec. 126. Immediate participation in the thrift savings plan for
Federal employees.
Sec. 127. Full funding limitation for multiemployer plans.
Sec. 128. Elimination of partial termination rules for multiemployer
plans.
Sec. 129. Repeal of 150 percent of current liability funding limit.
TITLE II--SECURITY
Sec. 200. Amendment of ERISA.
Subtitle A--General Provisions
Sec. 201. Periodic pension benefits statements.
Sec. 202. Requirement of annual, detailed investment reports applied to
certain 401(k) plans.
Sec. 203. Information required to be provided to investment managers of
401(k) plans.
[[Page S7265]]
Sec. 204. Study on investments in collectibles.
Sec. 205. Qualified employer plans prohibited from making loans through
credit cards and other intermediaries.
Sec. 206. Multiemployer plan benefits guaranteed.
Sec. 207. Prohibited transactions.
Sec. 208. Substantial owner benefits.
Sec. 209. Reversion report.
Subtitle B--ERISA Enforcement
Sec. 211. Civil penalties for breach of fiduciary responsibilities made
discretionary, etc.
Sec. 212. Reporting and enforcement requirements for employee benefit
plans.
Sec. 213. Additional requirements for qualified public accountants.
Sec. 214. Inspector General study.
Subtitle C--Increase in Excise Tax on Employer Reversions
Sec. 221. Increase in excise tax.
TITLE III--PORTABILITY
Sec. 301. Faster vesting of employer matching contributions.
Sec. 302. Rationalization of the restrictions on distributions from
401(k) plans.
Sec. 303. Treatment of transfers between defined contribution plans.
Sec. 304. Missing participants.
Sec. 305. Allowance of rollovers from and to 403(b) plans.
Sec. 306. Rollover contributions from deferred compensation plans of
State and local governments.
Sec. 307. Extension of 60-day rollover period in the case of
Presidentially declared disasters and service in combat
zone.
Sec. 308. Purchase of service credit in governmental defined benefit
plans.
TITLE IV--COMPREHENSIVE WOMEN'S PENSION PROTECTION
Subtitle A--Pension Reform
Sec. 401. Pension right to know proposals.
Sec. 402. Women's pension toll-free phone number.
Sec. 403. Modification of government pension offset.
Sec. 404. Family leave provisions.
Sec. 405. Pension integration rules.
Sec. 406. Division of pension benefits upon divorce.
Sec. 407. Entitlement of divorced spouses to railroad retirement
annuities independent of actual entitlement of employee.
Sec. 408. Effective dates.
Subtitle B--Protection of Rights of Former Spouses to Pension Benefits
Under Certain Government and Government-Sponsored Retirement Programs
Sec. 411. Extension of tier II railroad retirement benefits to
surviving former spouses pursuant to divorce agreements.
Sec. 412. Survivor annuities for widows, widowers, and former spouses
of Federal employees who die before attaining age for
deferred annuity under civil service retirement system.
Sec. 413. Payment of lump-sum benefits to former spouses of Federal
employees.
Subtitle C--Modifications of Joint and Survivor Annuity Requirements
Sec. 421. Modifications of joint and survivor annuity requirements.
Sec. 422. Spousal consent required for distributions from defined
contribution plans.
TITLE V--DATE FOR ADOPTION OF PLAN AMENDMENTS
Sec. 501. Date for adoption of plan amendments.
TITLE I--PENSION ACCESS AND COVERAGE
SEC. 100. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.
Subtitle A--Improved Access to Individual Retirement Savings
SEC. 101. CREDIT FOR PENSION PLAN STARTUP COSTS OF SMALL
EMPLOYERS.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by adding at the end the following new section:
``SEC. 45D. SMALL EMPLOYER PENSION PLAN STARTUP COSTS.
``(a) General Rule.--For purposes of section 38, in the
case of an eligible employer, the small employer pension plan
startup cost credit determined under this section for any
taxable year is an amount equal to 50 percent of the
qualified startup costs paid or incurred by the taxpayer
during the taxable year.
``(b) Dollar Limitation.--The amount of the credit
determined under this section for any taxable year shall not
exceed--
``(1) $1,000 for the first credit year,
``(2) $500 for each of the 2 taxable years immediately
following the first credit year, and
``(3) zero for any other taxable year.
``(c) Eligible Employer.--For purposes of this section--
``(1) In general.--The term `eligible employer' has the
meaning given such term by section 408(p)(2)(C)(i).
``(2) Employers maintaining qualified plans during 1997 not
eligible.--Such term shall not include an employer if such
employer (or any predecessor employer) maintained a qualified
plan (as defined in section 408(p)(2)(D)(ii)) with respect to
which contributions were made, or benefits were accrued, for
service in 1997. If only individuals other than employees
described in subparagraph (A) or (B) of section 410(b)(3) are
eligible to participate in the qualified employer plan
referred to in subsection (d)(1), then the preceding sentence
shall be applied without regard to any qualified plan in
which only employees so described are eligible to
participate.
``(d) Other Definitions.--For purposes of this section--
``(1) Qualified startup costs.--
``(A) In general.--The term `qualified startup costs' means
any ordinary and necessary expenses of an eligible employer
which are paid or incurred in connection with--
``(i) the establishment or administration of an eligible
employer plan, or
``(ii) the retirement-related education of employees with
respect to such plan.
``(B) Plan must have at least 2 participants.--Such term
shall not include any expense in connection with a plan that
does not have at least 2 individuals who are eligible to
participate.
``(C) Plan must be established before january 1, 2001.--
Such term shall not include any expense in connection with a
plan established after December 31, 2000.
``(2) Eligible employer plan.--The term `eligible employer
plan' means a qualified employer plan within the meaning of
section 4972(d), or a qualified payroll deduction arrangement
within the meaning of section 408(q)(1) (whether or not an
election is made under section 408(q)(2)). A qualified
payroll deduction arrangement shall be treated as an eligible
employer plan only if all employees of the employer who--
``(A) have been employed for 90 days, and
``(B) are not described in subparagraph (A) or (C) of
section 410(b)(3),
are eligible to make the election under section 408(q)(1)(A).
``(3) First credit year.--The term `first credit year'
means--
``(A) the taxable year which includes the date that the
eligible employer plan to which such costs relate becomes
effective, or
``(B) at the election of the eligible employer, the taxable
year preceding the taxable year referred to in subparagraph
(A).
``(e) Special Rules.--For purposes of this section--
``(1) Aggregation rules.--All persons treated as a single
employer under subsection (a) or (b) of section 52, or
subsection (n) or (o) of section 414, shall be treated as one
person. All eligible employer plans shall be treated as 1
eligible employer plan.
``(2) Disallowance of deduction.--No deduction shall be
allowed for that portion of the qualified startup costs paid
or incurred for the taxable year which is equal to the credit
determined under subsection (a).
``(3) Election not to claim credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable
year.''
(b) Credit Allowed as Part of General Business Credit.--
Section 38(b) (defining 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
new paragraph:
``(13) in the case of an eligible employer (as defined in
section 45D(c)), the small employer pension plan startup cost
credit determined under section 45D(a).''
(c) Conforming Amendments.--
(1) Section 39(d) is amended by adding at the end the
following new paragraph:
``(8) No carryback of small employer pension plan startup
cost credit before effective date.--No portion of the unused
business credit for any taxable year which is attributable to
the small employer pension plan startup cost credit
determined under section 45D may be carried back to a taxable
year ending on or before the date of the enactment of section
45D.''
(2) Subsection (c) of section 196 is amended by striking
``and'' at the end of paragraph (7), by striking the period
at the end of paragraph (8) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(9) the small employer pension plan startup cost credit
determined under section 45D(a).''
(3) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 45D. Small employer pension plan startup costs.''
(d) Effective Date.--The amendments made by this section
shall apply to costs paid or incurred in taxable years ending
after the date of the enactment of this Act.
SEC. 102. EXCLUSION FOR PAYROLL DEDUCTION CONTRIBUTIONS TO
IRAS.
(a) In General.--Section 408 (relating to individual
retirement accounts) is amended by redesignating subsection
(q) as subsection (r) and by inserting after subsection (p)
the following new subsection:
``(q) qualified Payroll Deduction Arrangement for IRA
Contributions.--
``(1) In general.--For purposes of this title, the term
`qualified payroll deduction
[[Page S7266]]
arrangement' means a written arrangement of an employer under
which--
``(A) an employee eligible to participate in the
arrangement may elect to have the employer make payments--
``(i) to the employee directly in cash, or
``(ii) as elective employer contributions to an individual
retirement plan (as defined in section 7701(a)(37)), other
than an individual retirement plan described in section
408(k), 408(p), or 408A(b), on behalf of the employee for the
taxable year in which the payments otherwise would have been
made to the employee directly in cash,
``(B) the amount which the employee may elect under
subparagraph (A) for any year may not exceed a total of
$2,000,
``(C) no other contributions may be made other than
contributions described in subparagraph (A),
``(D) the employee's rights to any contributions made to an
individual retirement plan are nonforfeitable (for this
purpose, rules similar to the rules of subsection (k)(4)
shall apply), and
``(E) the employer makes the elective employer
contributions under subparagraph (A) not later than the close
of the 30-day period following the last day of the month with
respect to which the contributions are to be made.
``(2) Election not to have subsection apply.--An employer
that maintains an arrangement otherwise described in
paragraph (1) may elect to have contributions treated as
though they were not made under such an arrangement. If an
employer does not make an election described in the preceding
sentence, an employee may elect, before any contributions are
made for the calendar year, to have contributions on behalf
of the employee treated as though they were not made under an
arrangement described in paragraph (1). An employer shall be
deemed to have made an election under this paragraph for a
year if the employer maintained a qualified plan with respect
to which contributions were made or benefits were accrued for
such year. For purposes of the preceding sentence, the term
`qualified plan' means a plan, contract, pension, or trust
described in subparagraph (A) or (B) of section 219(g)(5).''.
(b) Tax Treatment of Employer Contributions Made Under a
Qualified Payroll Deduction Arrangement.--
(1) Coordination with deduction under section 219.--
(A) Section 219(b) (relating to maximum amount of
deduction) is amended by adding at the end the following new
paragraph:
``(5) Special rule for contributions under a qualified
payroll deduction arrangement.--This section shall not apply
with respect to any amount contributed under a qualified
payroll deduction arrangement described in section 408(q)(1)
(for which an election has not been made under section
408(q)(2)).''.
(B) Section 219(g)(1) (relating to the limitation on
deduction for active participants) is amended to read as
follows:
``(1) In general.--If (for any part of any plan year ending
with or within a taxable year) an individual is an active
participant, each of the dollar limitations contained in
subsections (b)(1)(A) and (c)(1)(A) for such taxable year
shall be reduced (but not below zero) by the sum of--
``(A) the amount determined under paragraph (2), and
``(B) the amount contributed for the taxable year under a
qualified payroll deduction arrangement described in section
408(q)(1) (for which an election has not been made under
section 408(q)(2)).''.
(2) Deductibility of employer contributions.--Section 404
(relating to deductions for contributions of an employer to
pension, etc., plans) is amended by adding at the end the
following new subsection:
``(n) Special Rules for Contributions Under a Qualified
Payroll Deduction Arrangement.--Rules similar to the rules of
subsection (m) shall apply to employer contributions made
under a qualified payroll deduction arrangement described in
section 408(q)(1) (for which an election has not been made
under section 408(q)(2)).''.
(3) Contributions and distributions.--Section 402 (relating
to taxability of beneficiary of employees' trust) is amended
by adding at the end the following new subsection:
``(l) Treatment of Contributions and Distributions Under a
Qualified Payroll Deduction Arrangement.--Rules similar to
the rules of paragraphs (1) and (3) of subsection (h) shall
apply to contributions and distributions made with respect to
an individual retirement plan under a qualified payroll
deduction arrangement described in section 408(q)(1) (for
which an election has not been made under section 408(q)(2)),
except that contributions made by an employer on behalf of an
employee for a taxable year shall be excluded from income
only to the extent such contributions would have been
deductible for such taxable year under section 219, if such
section applied, without regard to section 219(g)(1)(B).
Contributions that are not excluded from income under the
preceding sentence shall be treated as designated
nondeductible contributions under section 408(o).''.
(c) Exemption From Withholding.--Subsection (a) of section
3401 (defining wages) is amended by striking ``or'' at the
end of paragraph (20), by striking the period at the end of
paragraph (21) and inserting ``; or'', and by inserting after
paragraph (21) the following new paragraph:
``(22) for any payment made for the benefit of the employee
to an individual retirement plan if the amount of such
payment was deducted and withheld under section 408(q).''.
(d) Exclusion Shown on W-2.--Subsection (a) of section 6051
(relating to receipts for employees) is amended by striking
``and'' at the end of paragraph (10), by striking the period
at the end of paragraph (11) and inserting ``, and'', and by
inserting after paragraph (11) the following new paragraph:
``(12) the total amount deducted and withheld pursuant to
section 408(q).''.
(e) Effective Date.--The amendments made by this section
shall apply to remuneration paid after December 31, 1998.
SEC. 103. NONREFUNDABLE TAX CREDIT FOR CONTRIBUTIONS TO
INDIVIDUAL RETIREMENT PLANS.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits) is
amended by inserting after section 25A the following new
section:
``SEC. 25B. RETIREMENT SAVINGS.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter so much of the
qualified retirement contributions of the taxpayer for the
taxable year as does not exceed the applicable amount of the
adjusted gross income of the taxpayer for such year.
``(b) Applicable Amount.--For purposes of subsection (a),
the applicable amount is determined in accordance with the
following table:
The applicable amount is:e is:
Not over $15,000..................................................$450.
Over $15,000 but not over $20,000.................................$400.
Over $20,000 but not over $25,000.................................$350.
Over $25,000 but not over $30,000.................................$300.
Over $30,000........................................................$0.
``(c) Section Not To Apply to Certain Contributions.--This
section shall not apply with respect to--
``(1) an employer contribution to a simplified employee
pension,
``(2) any amount contributed to a simple retirement account
established under section 408(p),
``(3) any amount contributed to a Roth IRA, and
``(4) any designated nondeductible contribution (as defined
in section 408(o)(2)(C)).
``(d) Other Limitations and Restrictions.--
``(1) Beneficiary must be under age 70\1/2\.--No credit
shall be allowed under this section with respect to any
qualified retirement contribution for the benefit of an
individual if such individual has attained age 70\1/2\ before
the close of such individual's taxable year for which the
contribution was made.
``(2) Recontributed amounts.--No credit shall be allowed
under this section with respect to a rollover contribution
described in section 402(c), 403(a)(4), 403(b)(8), or
408(d)(3).
``(3) Amounts contributed under endowment contract.--In the
case of an endowment contract described in section 408(b), no
credit shall be allowed under this section for that portion
of the amounts paid under the contract for the taxable year
which is properly allocable, under regulations prescribed by
the Secretary, to the cost of life insurance.
``(4) Denial of credit for amount contributed to inherited
annuities or accounts.--No credit shall be allowed under this
section with respect to any amount paid to an inherited
individual retirement account or individual retirement
annuity (within the meaning of section 408(d)(3)(C)(ii)).
``(5) No double benefit.--No credit shall be allowed under
this section for any taxable year with respect to the amount
of any qualified retirement contribution for the benefit of
an individual if such individual takes a deduction with
respect to such amount under section 219 for such taxable
year.
``(e) Qualified Retirement Contribution.--For purposes of
this section, the term `qualified retirement contribution'
means--
``(1) any amount paid in cash for the taxable year by or on
behalf of an individual to an individual retirement plan for
such individual's benefit, and
``(2) any amount contributed on behalf of any individual to
a plan described in section 501(c)(18).
``(f) Other Definitions and Special Rules.--
``(1) Compensation.--For purposes of this section, the term
`compensation' has the meaning given in section 219(f)(1).
``(2) Married couples must file joint return.--If the
taxpayer is married at the close of the taxable year, the
credit shall be allowed under subsection (a) only if the
taxpayer and the taxpayer's spouse file a joint return for
the taxable year.
``(3) Time when contributions deemed made.--For purposes of
this section, a taxpayer shall be deemed to have made a
contribution to an individual retirement plan on the last day
of the preceding taxable year if the contribution is made on
account of such taxable year and is made not later than the
time prescribed by law for filing the return for such taxable
year (not including extensions thereof).
``(4) Employer payments.--For purposes of this title, any
amount paid by an employer to an individual retirement plan
shall be treated as payment of compensation to the employee
(other than a self-employed individual who is an employee
within the meaning of section 401(c)(1)) includible in his
gross income in the taxable year for which the
[[Page S7267]]
amount was contributed, whether or not a credit for such
payment is allowable under this section to the employee.''
(b) Conforming Amendments.--
(1) Section 86(f) is amended by redesignating paragraphs
(2), (3), and (4) as paragraphs (3), (4), and (5),
respectively, and by inserting after paragraph (1) the
following new paragraph:
``(2) section 25B(f)(1) (defining compensation),''.
(2) Clause (i) of section 501(c)(18)(D) is amended by
inserting ``which may be taken into account in computing the
credit allowable under section 25B or'' before ``with
respect''.
(3) Section 6047(c) is amended by inserting ``section 25B
or'' before ``section 219''.
(4) Section 6652(g) is amended by inserting ``Creditable''
before ``Deductible'' in the heading thereof.
(5) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 25A the following new item:
``Sec. 25B. Retirement savings.''
(c) Effective Date.--The amendments made by this section
apply to taxable years beginning after December 31, 1998.
SEC. 104. DISTRIBUTIONS FROM CERTAIN PLANS MAY BE USED
WITHOUT PENALTY DURING PERIODS OF UNEMPLOYMENT.
(a) In General.--Paragraph (2) of section 72(t) (relating
to exceptions to 10-percent additional tax on early
distributions from qualified retirement plans) is amended by
adding at the end the following new subparagraph:
``(G) Additional distributions to unemployed individuals.--
``(i) In general.--Distributions from an individual
retirement plan, or from amounts attributable to employer
contributions made pursuant to elective deferrals described
in subparagraph (A) or (C) of section 402(g)(3) or section
501(c)(18)(D)(iii), to an individual after separation from
employment if--
``(I) such individual has received unemployment
compensation for 12 consecutive weeks under any Federal or
State unemployment compensation law by reason of such
separation, and
``(II) such distributions are made during the 1-year period
beginning on the date of such separation.
``(ii) Distributions after reemployment.--Clause (i) shall
not apply to any distribution made after the individual has
been employed for at least 60 days after the separation from
employment to which clause (i) applies.
``(iii) Coordination with subparagraph (d).--Distributions
during the 1-year period described in clause (i)(II) shall
not be taken into account in applying the limitation under
subparagraph (D)(i)(III).''
(b) Conforming Amendments.--
(1) Section 401(k)(2)(B)(i) is amended by striking ``or''
at the end of subclause (III), by striking ``and'' at the end
of subclause (IV) and inserting ``or'', and by inserting
after subclause (IV) the following new subclause:
``(V) the date on which a period referred to in section
72(t)(2)(G) begins, and''.
(2) Section 403(b)(11) is amended by striking ``or'' at the
end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, or'', and by inserting
after subparagraph (B) the following new subparagraph:
``(C) for distributions to which section 72(t)(2)(G)
applies.''
(c) Effective Date.--The amendments made by this section
shall apply to distributions after the date of the enactment
of this Act.
Subtitle B--Secure Money Annuity or Retirement (SMART) Trusts
SEC. 111. SECURE MONEY ANNUITY OR RETIREMENT (SMART) TRUSTS.
(a) In General.--Subpart A of part I of subchapter D of
chapter 1 is amended by inserting after section 408A the
following new section:
``SEC. 408B. SMART PLANS.
``(a) Employer Eligibility.--
``(1) In general.--An employer may establish and maintain a
SMART annuity or a SMART trust for any year only if--
``(A) the employer is an eligible employer (as defined in
section 408(p)(2)(C)), and
``(B) the employer does not maintain (and no predecessor of
the employer maintains) a qualified plan (other than a
permissible plan) with respect to which contributions were
made, or benefits were accrued, for service in any year in
the period beginning with the year such annuity or trust
became effective and ending with the year for which the
determination is being made.
The period described in subparagraph (B) shall include the
period of 5 years before the year such trust or annuity
became effective with respect to qualified plans which are
defined benefit plans or money purchase pension plans.
``(2) Definitions.--For purposes of paragraph (1)--
``(A) Qualified plan.--The term `qualified plan' has the
meaning given such term by section 408(p)(2)(D)(ii).
``(B) Permissible plan.--The term `permissible plan'
means--
``(i) a SIMPLE plan described in section 408(p),
``(ii) a SIMPLE 401(k) plan described in section
401(k)(11),
``(iii) an eligible deferred compensation plan described in
section 457(b),
``(iv) a collectively bargained plan but only if the
employees eligible to participate in such plan are not also
entitled to a benefit described in subsection (b)(5) or
(c)(5), or
``(v) a plan under which there may be made only--
``(I) elective deferrals described in section 402(g)(3),
and
``(II) employer matching contributions not in excess of the
amounts described in subclauses (I) and (II) of section
401(k)(12)(B)(i).
``(b) SMART Annuity.--
``(1) In general.--For purposes of this title, the term
`SMART annuity' means an individual retirement annuity (as
defined in section 408(b) without regard to paragraph (2)
thereof and without regard to the limitation on aggregate
annual premiums contained in the flush language of section
408(b)) if--
``(A) such annuity meets the requirements of paragraphs (2)
through (8), and
``(B) the only contributions to such annuity are employer
contributions.
Nothing in this section shall be construed as preventing an
employer from using a group annuity contract which is
divisible into individual retirement annuities for purposes
of providing SMART annuities.
``(2) Participation requirements.--
``(A) In general.--The requirements of this paragraph are
met for any year only if all employees of the employer who--
``(i) received at least $5,000 in compensation from the
employer during any 2 consecutive preceding years, and
``(ii) received at least $5,000 in compensation during the
year,
are entitled to the benefit described in paragraph (5) for
such year.
``(B) Excludable employees.--An employer may elect to
exclude from the requirements under subparagraph (A)
employees described in subparagraph (A) or (C) of section
410(b)(3).
``(3) Vesting.--The requirements of this paragraph are met
if the employee's rights to any benefits under the annuity
are nonforfeitable.
``(4) Benefit form.--The requirements of this paragraph are
met if the only form of benefit is--
``(A) a benefit payable annually in the form of a single
life annuity with monthly payments (with no ancillary
benefits) beginning at age 65, or
``(B) any other form of benefit which is the actuarial
equivalent (based on the assumptions specified in the SMART
annuity) of the benefit described in subparagraph (A).
``(5) Amount of annual accrued benefit.--
``(A) In general.--The requirements of this paragraph are
met for any plan year if the accrued benefit of each
participant derived from employer contributions for such
year, when expressed as a benefit described in paragraph
(4)(A), equals the applicable percentage of the participant's
compensation for such year.
``(B) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable percentage' means 2
percent.
``(ii) Election of different percentage.--An employer may
elect to apply an applicable percentage of 1 percent for any
year for all employees eligible to participate in the plan
for such year, if the employer notifies the employees of such
percentage within a reasonable period before the beginning of
such year. An employer may also elect to apply an applicable
percentage of 3 percent for any of the first 5 years that the
plan is effective for all employees eligible to participate
in the plan for such year, if the employer so notifies the
employees.
``(C) Compensation limit.--
``(i) In general.--The compensation taken into account
under this paragraph for any year shall not exceed $100,000.
``(ii) Cost-of-living adjustment.--The Secretary shall
adjust annually the $100,000 amount in clause (i) for
increases in the cost-of-living at the same time and in the
same manner as adjustments under section 415(d); except that
the base period shall be the calendar quarter beginning
October 1, 1998, and any increase which is not a multiple of
$5,000 shall be rounded to the next lowest multiple of
$5,000.
``(6) Funding.--
``(A) In general.--The requirements of this paragraph are
met only if the employer is required to contribute to the
annuity for each plan year the amount necessary to purchase a
SMART annuity in the amount of the benefit accrued for such
year for each participant entitled to such benefit. Such
contribution must be made no later than 8\1/2\ months after
the end of the plan year.
``(B) Penalty for failure to make required contribution.--
The taxes imposed by section 4971 shall apply to a failure to
make the contribution required by this paragraph in the same
manner as if the amount of the failure were an accumulated
funding deficiency to which such section applies.
``(7) Limitation on distributions.--
``(A) In general.--The requirements of this paragraph are
met only if distributions may be paid only when the employee
attains age 65, separates from service, dies, or becomes
disabled (within the meaning of section 72(m)(7)).
``(B) Limitation on distributions on separation from
service of employees who have not attained age 65.--
Subparagraph (A) shall apply to a distribution on separation
of service of an employee who has not attained age 65 only
if--
[[Page S7268]]
``(i) the aggregate cash value of an employee's SMART
annuities does not exceed the dollar limit in effect under
section 411(a)(11)(A), or
``(ii) the distribution is a direct trustee-to-trustee
transfer of the entire balance to the credit of the employee
to a SMART trust described in subsection (c), a SMART
rollover plan, or a SMART annuity for the benefit of such
employee.
``(8) Joint and survivor annuity rules applicable.--The
requirements of this paragraph are met only if the annuity
satisfies section 401(a)(11).
``(9) Definitions and special rule.--
``(A) Definitions.--The definitions in section 408(p)(6)
shall apply for purposes of this subsection.
``(B) Use of designated financial institutions.--A rule
similar to the rule of section 408(p)(7) (without regard to
the last sentence thereof) shall apply for purposes of this
subsection.
``(C) SMART rollover plan.--For purposes of this section,
the term `SMART rollover plan' means an individual retirement
plan for the benefit of the employee to which a rollover was
made from a SMART Annuity, SMART trust, or another SMART
Rollover plan.
``(c) SMART Trust.--
``(1) In general.--For purposes of this title, the term
`SMART trust' means a trust forming part of a defined benefit
plan if--
``(A) such trust meets the requirements of section 401(a)
as modified by subsection (d),
``(B) such plan meets the requirements of paragraphs (2)
through (8), and
``(C) the only contributions to such trust are employer
contributions.
``(2) Participation requirements.--A plan meets the
requirements of this paragraph for any year only if the
requirements of subsection (b)(2) are met for such year.
``(3) Vesting.--A plan meets the requirements of this
paragraph for any year only if the requirements of subsection
(b)(3) are met for such year.
``(4) Benefit form.--
``(A) In general.--Except as provided in subparagraph (B),
a plan meets the requirements of this paragraph only if the
trustee distributes a SMART annuity that satisfies subsection
(b)(4) where the annual benefit described in subsection
(b)(4)(A) is no less than the accrued benefit determined
under paragraph (5).
``(B) Direct transfers to individual retirement plan or
smart annuity.--A plan shall not fail to meet the
requirements of this paragraph by reason of permitting, as an
optional form of benefit, the distribution of the entire
balance to the credit of the employee. If the employee is
under age 65, such distribution must be in the form of a
direct trustee-to-trustee transfer to a SMART annuity,
another SMART trust, or a SMART rollover plan (or, in the
case of a distribution that does not exceed the dollar limit
in effect under section 411(a)(11)(A), any other individual
retirement plan).
``(5) Amount of annual accrued benefit.--A plan meets the
requirements of this paragraph for any year only if the
requirements of subsection (b)(5) are met for such year.
``(6) Funding.--
``(A) In general.--A plan meets the requirements of this
paragraph for any year only if--
``(i) the requirements of subparagraph (A) of subsection
(b)(6) are met for such year,
``(ii) in the case of a plan which has an unfunded annuity
amount with respect to the account of any participant, the
plan requires that the employer make an additional
contribution to such plan (at the time the annuity contract
to which such amount relates is purchased) equal to the
unfunded annuity amount, and
``(iii) in the case of a plan which has an unfunded prior
year liability as of the close of such plan year, the plan
requires that the employer make an additional contribution to
such plan for such year equal to the amount of such unfunded
prior year liability no later than 8\1/2\ months following
the end of the plan year.
``(B) Unfunded annuity amount.--For purposes of this
paragraph, the term `unfunded annuity amount' means, with
respect to the account of any participant for whom an annuity
is being purchased, the excess (if any) of--
``(i) the amount necessary to purchase an annuity contract
which meets the requirements of subsection (b)(4) in the
amount of the participant's accrued benefit determined under
paragraph (5), over
``(ii) the balance in such account at the time such
contract is purchased.
``(C) Unfunded prior year liability.--For purposes of this
paragraph, the term `unfunded prior year liability' means,
with respect to any plan year, the excess (if any) of--
``(i) the aggregate of the present value under the plan as
of the close of the prior plan year, over
``(ii) the value of the plan's assets determined under
section 412(c)(2) as of the close of the plan year
(determined without regard to any contributions for such plan
year).
Such present value shall be determined using the assumptions
specified in subparagraph (D).
``(D) Actuarial assumptions.--In determining the amount
required to be contributed under subparagraph (A)--
``(i) the assumed interest rate shall be 5 percent per
year,
``(ii) the assumed mortality shall be determined under the
applicable mortality table (as defined in section 417(e)(3),
as modified by the Secretary so that it does not include any
assumption for preretirement mortality), and
``(iii) the assumed retirement age shall be 65.
``(E) Changes in mortality table.--If the applicable
mortality table under section 417(e)(3) for any plan year is
not the same as such table for the prior plan year, the
Secretary shall prescribe regulations which phase in the
effect of the changes over a reasonable period of plan years
determined by the Secretary.
``(F) Penalty for failure to make required contribution.--
The taxes imposed by section 4971 shall apply to a failure to
make the contribution required by this paragraph in the same
manner as if the amount of the failure were an accumulated
funding deficiency to which such section applies.
``(7) Separate accounts for participants.--A plan meets the
requirements of this paragraph for any year only if the plan
provides--
``(A) for an individual account for each participant, and
``(B) for benefits based solely on--
``(i) the amount contributed to the participant's account,
``(ii) any income, expenses, gains and losses, and any
forfeitures of accounts of other participants which may be
allocated to such participant's account, and
``(iii) the amount of any unfunded annuity amount with
respect to the participant.
``(8) Trust may not hold securities which are not readily
tradable.--A plan meets the requirements of this paragraph
only if the plan prohibits the trust from holding directly or
indirectly securities which are not readily tradable on an
established securities market. Nothing in this paragraph
shall prohibit the trust from holding insurance company
products regulated by State law.
``(9) Definitions.--The definitions applicable under
subsection (b)(8) shall apply for purposes of this
subsection.
``(d) Special Rules for SMART Annuities and Trusts.--For
purposes of section 401(a), a SMART annuity and a SMART trust
shall be treated as meeting the requirements of the following
provisions:
``(1) Section 401(a)(4) (relating to nondiscrimination
rules).
``(2) Section 401(a)(26) (relating to minimum
participation).
``(3) Section 410 (relating to minimum participation and
coverage requirements).
``(4) Section 411(b) (relating to accrued benefit
requirements).
``(5) Section 416 (relating to special rules for top-heavy
plans).''
(b) Deduction Rules.--
(1) In general.--Section 404 is amended by adding at the
end the following new subsection:
``(n) Special Rules for SMART Annuities and Trusts.--
``(1) In general.--Employer contributions to a SMART
annuity shall be treated as if they are made to a plan
described in paragraph (1) of subsection (a).
``(2) Deductible limit.--For purposes of section
404(a)(1)(A)(i), the amount necessary to satisfy the minimum
funding requirement of section 408B (b)(6) or (c)(6) shall be
treated as the amount necessary to satisfy the minimum
funding requirement of section 412.''
(2) Coordination with deduction under section 219.--
(A) Section 219(b) is amended by adding at the end the
following new paragraph:
``(5) Special rule for smart annuities.--This section shall
not apply with respect to any amount contributed to a SMART
annuity established under section 408B(b).''
(B) Section 219(g)(5)(A) (defining active participant) is
amended by striking ``or'' at the end of clause (v) and by
adding at the end the following new clause:
``(vii) any SMART annuity (within the meaning of section
408B), or''.
(c) Contributions and Distributions.--
(1) Section 402 is amended by adding at the end the
following new subsection:
``(l) Treatment of SMART Annuities.--Rules similar to the
rules of paragraphs (1) and (3) of subsection (h) shall apply
to contributions and distributions with respect to SMART
annuities under section 408B.''
(2) Section 408(d)(3) is amended by adding at the end the
following new subparagraph:
``(H) SMART annuities.--This paragraph shall not apply to
any amount paid or distributed out of a SMART annuity (as
defined in section 408B) unless it is paid in a trustee-to-
trustee transfer into a SMART rollover plan.''
(3)(A) Section 412(h) is amended by striking ``or'' at the
end of paragraph (5), by striking the period at the end of
paragraph (6) and inserting ``, or'', and by inserting after
paragraph (6) the following new paragraph:
``(7) any plan providing for the purchase of any SMART
annuity or any SMART plan.''
(B) Section 301(a) of Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1081) is amended by striking ``or'' at
the end of paragraph (9), by striking the period at the end
of paragraph (10) and inserting ``; or'', and by adding at
the end the following new paragraph:
``(11) any plan providing for the purchase of any SMART
annuity or any SMART plan (as such terms are defined in
section 408B of such Code).''
(4) Section 415(b) is amended by adding at the end the
following new paragraph:
[[Page S7269]]
``(12) Treatment of smart annuities and trusts.--A SMART
annuity and a SMART trust shall be treated as meeting the
requirements of this section, but distributions from such an
annuity or trust shall be taken into account in determining
whether any other plan satisfies the requirements of this
section.''
(d) Increased Penalty on Early Withdrawals.--Section 72(t)
(relating to additional tax on early distributions) is
amended by adding at the end the following new paragraph:
``(9) Special rules for smart annuities and trusts.--In the
case of any amount received from a SMART annuity, a SMART
trust, or a SMART rollover plan (within the meaning of
section 408B), paragraph (1) shall be applied by substituting
`20 percent' for `10 percent' and paragraph (2) shall be
applied by substituting `age 65' for `age 59\1/2\'.''
(e) Simplified Employer Reports.--
(1) SMART annuities.--Section 408(l) (relating to
simplified employer reports) is amended by adding at the end
the following new paragraph:
``(3) SMART annuities.--
``(A) Simplified report.--The employer maintaining any
SMART annuity (within the meaning of section 408B) shall file
a simplified annual return with the Secretary containing only
the information described in subparagraph (B).
``(B) Contents.--The return required by subparagraph (A)
shall set forth--
``(i) the name and address of the employer,
``(ii) the date the plan was adopted,
``(iii) the number of employees of the employer,
``(iv) the number of such employees who are eligible to
participate in the plan,
``(v) the total amount contributed by the employer to each
such annuity for such year and the minimum amount required
under section 408B to be so contributed,
``(vi) the percentage elected under section 408B(b)(5)(B),
``(vii) the name of the issuer,
``(viii) the employer identification number,
``(ix) the name of the plan, and
``(x) the date of the contribution.
``(C) Reporting by issuer of smart annuity.--
``(i) In general.--The issuer of each SMART annuity shall
provide to the owner of the annuity for each year a statement
setting forth as of the close of such year--
``(I) the benefits guaranteed at age 65 under the annuity,
and
``(II) the cash surrender value of the annuity.
``(ii) Summary description.--The issuer of any SMART
annuity shall provide to the employer maintaining the annuity
for each year a description containing the following
information:
``(I) The name and address of the employer and the issuer.
``(II) The requirements for eligibility for participation.
``(III) The benefits provided with respect to the annuity.
``(IV) The procedures for, and effects of, withdrawals
(including rollovers) from the annuity.
``(D) Time and manner of reporting.--Any return, report, or
statement required under this paragraph shall be made in such
form and at such time as the Secretary shall prescribe.''
(2) SMART trusts.--Section 6059 (relating to actuarial
reports) is amended by redesignating subsections (c) and (d)
as subsections (d) and (e), respectively, and by inserting
after subsection (b) the following new subsection:
``(c) SMART Trusts.--In the case of a SMART trust (within
the meaning of section 408B), the Secretary shall require a
simplified actuarial report which contains--
``(1) information similar to the information required in
section 408(l)(3)(B),
``(2) the fair market value of the assets of the trust,
``(3) the amounts distributed directly to participants,
``(4) the amounts transferred to SMART rollover plans, and
``(5) the present value of the annual accrued benefits
under the plan to which the trust relates.''
(f) Conforming Amendments.--
(1) Subparagraph (A) of section 219(g)(5) is amended by
striking ``or'' at the end of clause (v) and by inserting
after clause (vi) the following new clause:
``(vii) any SMART trust or SMART annuity (within the
meaning of section 408B), or''.
(2) Section 280G(b)(6) is amended by striking ``or'' at the
end of subparagraph (C), by striking the period at the end of
subparagraph (D) and inserting ``, or'' and by adding after
subparagraph (D) the following new subparagraph:
``(E) a SMART annuity described in section 408B.''
(3) Subsections (b), (c), (m)(4)(B), and (n)(3)(B) of
section 414 are each amended by inserting ``408B,'' after
``408(p),''.
(4) Section 4972(d)(1)(A) is amended by striking ``and'' at
the end of clause (iii), by striking the period at the end of
clause (iv) and inserting ``, and'', and by adding after
clause (iv) the following new clause:
``(v) any SMART annuity (within the meaning of section
408B).''
(g) Reporting Requirements Under ERISA.--Section 101 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1021) is amended by redesignating subsection (h) as
subsection (i) and by inserting after subsection (g) the
following new subsection:
``(h) SMART Annuities.--
``(1) No employer reports.--Except as provided in this
subsection, no report shall be required under this section by
an employer maintaining a SMART annuity under section 408B(b)
of the Internal Revenue Code of 1986.
``(2) Summary description.--The issuer of any SMART annuity
shall provide to the employer maintaining the annuity for
each year a description containing the following information:
``(A) The name and address of the employer and the issuer.
``(B) The requirements for eligibility for participation.
``(C) The benefits provided with respect to the annuity.
``(D) The procedures for, and effects of, withdrawals
(including rollovers) from the annuity.''
``(3) Employee notification.--The employer shall provide
each employee eligible to participate in the SMART annuity
with the description described in paragraph (2) at the same
time as the notification required under section 408B(b)(5)(B)
of the Internal Revenue Code of 1986.''
(h) $5 Per Participant PBGC Premium.--Subparagraph (A) of
section 4006(a)(3) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1306) is amended--
(1) by inserting ``not described in clause (iv)'' after
``in the case of a single-employer plan'' in clause (i),
(2) by striking the period at the end of clause (iii) and
inserting ``; and'', and
(3) by inserting after clause (iii) the following new
clause:
``(iv) in the case of a single-employer plan described in
section 408B(c) of the Internal Revenue Code of 1986, an
amount equal to $5 for each participant.''.
(i) Clerical Amendment.--The table of sections for subpart
A of part I of subchapter D of chapter 1 is amended by
inserting after the item relating to section 408A the
following new item:
``Sec. 408B. SMART plans.''
(j) Effective Date.--The amendments made by this section
shall apply to years beginning after December 31, 1998.
Subtitle C--Improved Fairness in Retirement Plan Benefits
SEC. 121. AMENDMENTS TO SIMPLE RETIREMENT ACCOUNTS.
(a) Minimum Contribution Requirement.--
(1) In general.--Paragraph (2) of section 408(p) (defining
qualified salary reduction arrangement) is amended--
(A) by striking clauses (iii) and (iv) of subparagraph (A)
and inserting the following new clauses:
``(iii) the employer is required to make a matching
contribution to the simple retirement account for any year in
an amount equal to--
``(I) so much of the amount the employee elects under
clause (i)(I) as does not exceed 3 percent of compensation
for the year, and
``(II) a uniform percentage (which is at least 50 percent
but not more than 100 percent) of the amount the employee
elects under clause (i)(I) to the extent that such amount
exceeds 3 percent but does not exceed 5 percent of the
employee's compensation,
``(iv) the employer is required to make nonelective
contributions of 1 percent of compensation for each employee
eligible to participate in the arrangement who has at least
$5,000 of compensation from the employer for the year, and
``(v) no contributions may be made other than contributions
described in clause (i), (iii), or (iv).'', and
(B) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B) Contribution rules.--
``(i) Employer may elect 3-percent nonelective
contribution.--An employer shall be treated as meeting the
requirements of clauses (iii) and (iv) of subparagraph (A)
for any year if, in lieu of the contributions described in
such clauses, the employer elects to make nonelective
contributions of 3 percent of compensation for each employee
who is eligible to participate in the arrangement and who has
at least $5,000 of compensation from the employer for the
year. If an employer makes an election under this clause for
any year, the employer shall notify employees of such
election within a reasonable period of time before the 60-day
period for such year under paragraph (5)(C).
``(ii) Discretionary contributions.--A plan shall not be
treated as failing to meet the requirements of subparagraph
(A)(v) merely because, pursuant to the terms of the plan, an
employer makes nonelective contributions under subparagraph
(A)(iv) or clause (i) of this subparagraph in excess of 1
percent or 3 percent of compensation, respectively, but only
if all such contributions bear a uniform relationship to the
compensation of each eligible employee and do not exceed 5
percent of compensation for any eligible employee.
``(iii) Compensation limitation.--The compensation taken
into account under this paragraph for any year shall not
exceed the limitation in effect for such year under section
401(a)(17).''
(2) Matching contributions.--Subparagraph (B) of section
401(k)(11) (relating to adoption of simple plan to meet
nondiscrimination tests) is amended--
(A) by striking subclauses (II) and (III) of clause (i) and
inserting the following new subclauses:
[[Page S7270]]
``(II) the employer is required to make a matching
contribution to the trust for any year in an amount equal
to--
``(aa) so much of the amount the employee elects under
subclause (I) as does not exceed 3 percent of compensation
for the year, and
``(bb) a uniform percentage (which is at least 50 percent
but not more than 100 percent) of the amount the employee
elects under subclause (I) to the extent that such amount
exceeds 3 percent but does not exceed 5 percent of the
employee's compensation,
``(III) the employer is required to make nonelective
contributions of 1 percent of compensation for each employee
eligible to participate in the arrangement who has at least
$5,000 of compensation from the employer for the year, and
``(IV) no other contributions may be made other than
contributions described in subclause (I), (II), or (III).'',
and
(B) by striking clause (ii) and inserting the following new
clause:
``(ii) Contribution rules.--
``(I) Employer may elect 3-percent nonelective
contribution.--An employer shall be treated as meeting the
requirements of subclauses (II) and (III) of clause (i) for
any year if, in lieu of the contributions described in such
subclauses, the employer elects to make nonelective
contributions of 3 percent of compensation for each employee
who is eligible to participate in the arrangement and who has
at least $5,000 of compensation from the employer for the
year. If an employer makes an election under this subclause
for any year, the employer shall notify employees of such
election within a reasonable period of time before the 60th
day before the beginning of such year.
``(II) Discretionary contributions.--A plan shall not be
treated as failing to meet the requirements of clause (i)(IV)
merely because, pursuant to the terms of the plan, an
employer makes nonelective contributions under clause
(i)(III) or subclause (I) of this clause in excess of 1
percent or 3 percent of compensation, respectively, but only
if all such contributions bear a uniform relationship to the
compensation of each eligible employee and do not exceed 5
percent of compensation for any eligible employee.''
(b) Option To Suspend Contributions.--Section 408(p)
(relating to simple retirement accounts) is amended by adding
at the end the following new paragraph:
``(10) Suspension of plan.--Except as provided by the
Secretary, a plan shall not be treated as failing to meet the
requirements of this subsection if, under the plan, the
employer may suspend all elective, matching, and nonelective
contributions under the plan after notifying employees
eligible to participate in the arrangement of such suspension
in writing at least 30 days in advance. Such suspension shall
apply to contributions with respect to compensation earned
after the effective date of the suspension. Only 1 suspension
under this paragraph may take effect during any year.''
(c) Conforming Amendments.--Section 408(p)(2)(C) is
amended--
(1) by striking clause (ii),
(2) by striking ``Definitions'' in the heading and
inserting ``Eligible employer'',
(3) by striking ``(i) Eligible employer.--'', and
(4) by redesignating subclauses (I) and (II) as clauses (i)
and (ii), respectively.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 1998.
(2) Delayed effective date for plans established in 1997 or
1998.--In the case of plans established in 1997 or 1998 under
section 408(p) of the Internal Revenue Code of 1986, the
amendments made by this section shall apply to taxable years
beginning after December 31, 2002.
SEC. 122. NONDISCRIMINATION RULES FOR QUALIFIED CASH OR
DEFERRED ARRANGEMENTS AND MATCHING
CONTRIBUTIONS.
(a) Alternative Methods of Satisfying Section 401(k)
Nondiscrimination Tests.--Subparagraph (B) of section
401(k)(12) (relating to alternative methods of meeting
nondiscrimination requirements) is amended to read as
follows:
``(B) Nonelective and matching contributions.--
``(i) In general.--The requirements of this subparagraph
are met if the requirements of clauses (ii) and (iii) are
met.
``(ii) Nonelective contributions.--The requirements of this
clause are met if, under the arrangement, the employer is
required, without regard to whether the employee makes an
elective contribution or employee contribution, to make a
contribution to a defined contribution plan on behalf of each
employee who is not a highly compensated employee and who is
eligible to participate in the arrangement in an amount equal
to at least 1 percent of the employee's compensation.
``(iii) Matching contributions.--The requirements of this
clause are met if, under the arrangement, the employer makes
matching contributions on behalf of each employee who is not
a highly compensated employee in an amount equal to--
``(I) 100 percent of the elective contributions of the
employee to the extent such elective contributions do not
exceed 3 percent of the employee's compensation, and
``(II) 50 percent of the elective contributions of the
employee to the extent that such elective contributions
exceed 3 percent but do not exceed 5 percent of the
employee's compensation.
``(iv) Rate for highly compensated employees.--The
requirements of clause (iii) are not met if, under the
arrangement, the rate of matching contribution with respect
to any rate of elective contribution of a highly compensated
employee is greater than that with respect to an employee who
is not a highly compensated employee. For purposes of this
clause, to the extent provided in regulations, the last
sentences of paragraph (3)(A) and subsection (m)(2)(B) shall
not apply.
``(v) Alternative plan designs.--If the rate of matching
contribution with respect to any rate of elective
contribution is not equal to the percentage required under
clause (iii), an arrangement shall not be treated as failing
to meet the requirements of clause (iii) if--
``(I) the rate of an employer's matching contribution does
not increase as an employee's rate of elective contribution
increase, and
``(II) the aggregate amount of matching contributions at
such rate of elective contribution is at least equal to the
aggregate amount of matching contributions which would be
made if matching contributions were made on the basis of the
percentages described in clause (iii).''
(b) Contributions Part of Qualified Cash or Deferred
Arrangement.--Subparagraph (E)(ii) of section 401(k)(12) is
amended to read as follows:
``(ii) Social security and similar contributions not taken
into account.--Except as provided in regulations, an
arrangement shall not be treated as meeting the requirements
of subparagraph (B) or (C) unless such requirements are met
without regard to subsection (l), and, for purposes of
subsection (l), and determining whether contributions
provided under a plan satisfy subsection (a)(4) on the basis
of equivalent benefits, employer contributions under
subparagraph (B) or (C) shall not be taken into account.''
(c) Alternative Methods of Satisfying Section 401(m)
Nondiscrimination Tests.--Section 401(m)(11) (relating to
alternative method of satisfying tests) is amended--
(1) by striking ``subparagraph (B)'' in subparagraph
(A)(iii) and inserting ``subparagraphs (B) and (C)'',
(2) by adding at the end of subparagraph (B) the following
new flush sentence:
``To the extent provided in regulations, the last sentences
of paragraph (2)(B) and subsection (k)(3)(A) shall not apply
for purposes of clause (iii).'', and
(3) by adding at the end the following new subparagraph:
``(C) Test must be met separately.--If this paragraph
applies to any matching contributions, such contributions
shall not be taken into account in determining whether
employee contributions satisfy the requirements of this
subsection.''
(d) Special Rule for Determining Average Deferral
Percentage for First Plan Year, Etc.--Subparagraph (E) of
section 401(k)(3) is amended to read as follows:
``(E) For purposes of this paragraph, in the case of the
first plan year of any plan, the amount taken into account as
the actual deferral percentage of nonhighly compensated
employees for the preceding plan year shall be--
``(i) 3 percent, or
``(ii) the actual deferral percentage of nonhighly
compensated employees determined for such first plan year in
the case of--
``(I) an employer who elects to have this clause apply, or
``(II) except to the extent provided by the Secretary, a
successor plan.''
(e) Effective Date.--The amendments made by this section
shall apply to years beginning after December 31, 1998.
SEC. 123. DEFINITION OF HIGHLY COMPENSATED EMPLOYEES.
(a) In General.--Subparagraph (B) of section 414(q)(1)
(defining highly compensated employee) is amended to read as
follows:
``(B) for the preceding year had compensation from the
employer in excess of $80,000.''
(b) Conforming Amendments.--
(1)(A) Subsection (q) of section 414 is amended by striking
paragraphs (3), (5), and (7) and by redesignating paragraphs
(4), (6), (8), and (9) as paragraphs (3) through (6),
respectively.
(B) Sections 129(d)(8)(B), 401(a)(5)(D)(ii), 408(k)(2)(C),
and 416(i)(1)(D) are each amended by striking ``section
414(q)(4)'' and inserting ``section 414(q)(3)''.
(C) Section 416(i)(1)(A) is amended by striking ``section
414(q)(5)'' and inserting ``section 414(r)(9)''.
(2)(A) Section 414(r) is amended by adding at the end the
following new paragraph:
``(9) Excluded employees.--For purposes of paragraph
(2)(A), the following employees shall be excluded:
``(A) Employees who have not completed 6 months of service.
``(B) Employees who normally work less than 17\1/2\ hours
per week.
``(C) Employees who normally work during not more than 6
months during any year.
``(D) Employees who have not attained the age of 21.
``(E) Except to the extent provided in regulations,
employees who are included in a unit of employees covered by
an agreement which the Secretary of Labor finds to be a
collective bargaining agreement between employee
representatives and the employer.''
(B) Subparagraph (A) of section 414(r)(2) is amended by
striking ``subsection (q)(5)'' and inserting ``paragraph
(9)''.
[[Page S7271]]
(c) Effective Date.--The amendments made by this section
shall apply to years beginning after December 31, 1998.
SEC. 124. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 415.
(a) Compensation Limit.--Paragraph (11) of section 415(b)
(relating to limitation for defined benefit plans) is amended
to read as follows:
``(11) Special limitation rule for governmental and
multiemployer plans.--In the case of a governmental plan (as
defined in section 414(d)) or a multiemployer plan (as
defined in section 414(f)), subparagraph (B) of paragraph (1)
shall not apply.''
(b) Exemption for Survivor and Disability Benefits.--
Subparagraph (I) of section 415(b)(2) (relating to limitation
for defined benefit plans) is amended--
(1) by inserting ``or a multiemployer plan (as defined in
section 414(f))'' after ``section 414(d))'' in clause (i),
(2) by inserting ``or multiemployer plan'' after
``governmental plan'' in clause (ii), and
(3) by inserting ``and multiemployer'' after
``governmental'' in the heading.
(c) Effective Date.--The amendments made by this section
shall apply to years beginning after December 31, 1998.
SEC. 125. EXEMPTION OF MIRROR PLANS FROM SECTION 457 LIMITS.
(a) In General.--Subsection (e) of section 457 (relating to
deferred compensation plans of State and local governments
and tax-exempt organizations) is amended by adding at the end
the following new paragraph:
``(16) Exemption for mirror plans.--
``(A) In general.--Amounts of compensation deferred under a
mirror plan shall not be taken into account in applying this
section to amounts of compensation deferred under any other
deferred compensation plan.
``(B) Mirror plan.--The term `mirror plan' means a plan,
program, or arrangement maintained solely for the purpose of
providing retirement benefits for employees in excess of the
limitations imposed by section 401(a)(17) or section 415, or
both.''
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
1998.
SEC. 126. IMMEDIATE PARTICIPATION IN THE THRIFT SAVINGS PLAN
FOR FEDERAL EMPLOYEES.
(a) Elimination of Certain Waiting Periods for Purposes of
Employee Contributions.--Paragraph (4) of section 8432(b) of
title 5, United States Code, is amended to read as follows:
``(4) The Executive Director shall prescribe such
regulations as may be necessary to carry out the following:
``(A) Notwithstanding subparagraph (A) of paragraph (2), an
employee or Member described in such subparagraph shall be
afforded a reasonable opportunity to first make an election
under this subsection beginning on the date of commencing
service or, if that is not administratively feasible,
beginning on the earliest date thereafter that such an
election becomes administratively feasible, as determined by
the Executive Director.
``(B) An employee or Member described in subparagraph (B)
of paragraph (2) shall be afforded a reasonable opportunity
to first make an election under this subsection (based on the
appointment or election described in such subparagraph)
beginning on the date of commencing service pursuant to such
appointment or election or, if that is not administratively
feasible, beginning on the earliest date thereafter that such
an election becomes administratively feasible, as determined
by the Executive Director.
``(C) Notwithstanding the preceding provisions of this
paragraph, contributions under paragraphs (1) and (2) of
subsection (c) shall not be payable with respect to any pay
period before the earliest pay period for which such
contributions would otherwise be allowable under this
subsection if this paragraph had not been enacted.
``(D) Sections 8351(a)(2), 8440a(a)(2), 8440b(a)(2),
8440c(a)(2), and 8440d(a)(2) shall be applied in a manner
consistent with the purposes of subparagraphs (A) and (B), to
the extent those subparagraphs can be applied with respect
thereto.
``(E) Nothing in this paragraph shall affect paragraph
(3).''
(b) Technical and Conforming Amendments.--
(1) Section 8432(a) of title 5, United States Code, is
amended--
(A) in the first sentence by striking ``(b)(1)'' and
inserting ``(b)''; and
(B) by amending the second sentence to read as follows:
``Contributions under this subsection pursuant to such an
election shall, with respect to each pay period for which
such election remains in effect, be made in accordance with a
program of regular contributions provided in regulations
prescribed by the Executive Director.''
(2) Section 8432(b)(1)(B) of such title is amended by
inserting ``(or any election allowable by virtue of paragraph
(4))'' after ``subparagraph (A)''.
(3) Section 8432(b)(3) of such title is amended by striking
``Notwithstanding paragraph (2)(A), an'' and inserting
``An''.
(4) Section 8432(i)(1)(B)(ii) of such title is amended by
striking ``either elected to terminate individual
contributions to the Thrift Savings Fund within 2 months
before commencing military service or''.
(5) Section 8439(a)(1) of such title is amended by
inserting ``who makes contributions or'' after ``for each
individual'' and by striking ``section 8432(c)(1)'' and
inserting ``section 8432''.
(6) Section 8439(c)(2) of such title is amended by adding
at the end the following: ``Nothing in this paragraph shall
be considered to limit the dissemination of information only
to the times required under the preceding sentence.''
(7) Sections 8440a(a)(2) and 8440d(a)(2) of such title are
amended by striking all after ``subject to'' and inserting
``subject to this chapter.''
(c) Effective Date.--This section shall take effect 6
months after the date of the enactment of this Act or such
earlier date as the Executive Director may by regulation
prescribe.
SEC. 127. FULL FUNDING LIMITATION FOR MULTIEMPLOYER PLANS.
(a) Amendments to Code.--
(1) Full funding limitation.--Section 412(c)(7)(C)
(relating to full funding limitation) is amended--
(A) by inserting ``or in the case of a multiemployer
plan,'' after ``paragraph (6)(B),'', and
(B) by inserting ``and multiemployer plans'' after
``paragraph (6)(b)'' in the heading thereof.
(2) Valuation.--Section 412(c)(9) (relating to annual
valuation) is amended--
(A) by inserting ``(3 years in the case of a multiemployer
plan)'' after ``year'', and
(B) by striking ``Annual valuation'' in the heading and
inserting ``Valuation''.
(b) Amendments to ERISA.--
(1) Full funding limitation.--Section 302(c)(7)(C) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1082(c)(7)(C)) is amended--
(A) by inserting ``or in the case of a multiemployer
plan,'' after ``paragraph (6)(B),'', and
(B) by inserting ``and multiemployer plans'' after
``paragraph (6)(b)'' in the heading thereof.
(2) Valuation.--Section 302(c)(9) of such Act (29 U.S.C.
1082(c)(9)) is amended--
(A) by inserting ``(3 years in the case of a multiemployer
plan)'' after ``year'', and
(B) by striking ``Annual valuation'' in the heading and
inserting ``Valuation''.
(c) Effective Date.--The amendments made by this section
shall apply to plan years beginning after December 31, 1998.
SEC. 128. ELIMINATION OF PARTIAL TERMINATION RULES FOR
MULTIEMPLOYER PLANS.
(a) Partial Termination Rules for Multiemployer Plans.--
Section 411(d)(3) (relating to termination or partial
termination; discontinuance of contributions) is amended by
adding at the end the following new sentence: ``This
paragraph shall not apply in the case of a partial
termination of a multiemployer plan.''
(b) Effective Date.--The amendment made by this section
shall apply to partial terminations beginning after December
31, 1998.
SEC. 129. REPEAL OF 150 PERCENT OF CURRENT LIABILITY FUNDING
LIMIT.
(a) In General.--Section 412(c)(7) (relating to full-
funding limitation) is amended--
(1) by striking ``150 percent'' in subparagraph (A)(i)(I)
and inserting ``the applicable percentage'', and
(2) by adding at the end the following new subparagraph:
``(F) Applicable percentage.--For purposes of subparagraph
(A)(i)(I), the applicable percentage is determined according
to the following table:
The applicable percentage is-- beginning in--
1998.........................................................155 ....
1999.........................................................160 ....
2000.........................................................165 ....
2001.........................................................170 ....
2002 and succeeding years....................................0.''....
(b) Special Amortization Rule.--
(1) In general.--Section 412(c)(7), as amended by
subsection (a), is amended by adding at the end the following
new subparagraph:
``(G) Special amortization rule.--Contributions that would
be required to be made under the plan but for the provisions
of subparagraph (A)(i)(I) shall be amortized over a 20-year
period.''
(2) Conforming amendment.--Section 412(c)(7)(D) is amended
by adding ``and'' at the end of clause (i), by striking ``,
and'' at the end of clause (ii) and inserting a period, and
by striking clause (iii).
(3) Effective date.--The amendments made by this subsection
shall apply to any unamortized bases with respect to plan
years beginning before, on, or after December 31, 1998.
TITLE II--SECURITY
SEC. 200. AMENDMENT OF ERISA.
Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of the Employee Retirement Income Security
Act of 1974.
Subtitle A--General Provisions
SEC. 201. PERIODIC PENSION BENEFITS STATEMENTS.
(a) In General.--Subsection (a) of section 105 (29 U.S.C.
1025) is amended--
(1) by striking ``shall furnish to any plan participant or
beneficiary who so requests in writing,'' and inserting
``shall furnish at least once every 3 years, in the case of a
participant in a defined benefit plan who has attained age
35, and annually, in the case of a
[[Page S7272]]
defined contribution plan, to each plan participant, and
shall furnish to any plan participant or beneficiary who so
requests,'', and
(2) by adding at the end the following flush sentence:
``Information furnished under the preceding sentence to a
participant in a defined benefit plan (other than at the
request of the participant) may be based on reasonable
estimates determined under regulations prescribed by the
Secretary.''
(b) Rule for Multiemployer Plans.--Subsection (d) of
section 105 (29 U.S.C. 1025) is amended to read as follows:
``(d) Each administrator of a plan to which more than 1
unaffiliated employer is required to contribute shall furnish
to any plan participant or beneficiary who so requests in
writing, a statement described in subsection (a).''
(c) Effective Date.--The amendments made by this section
shall apply to plan years beginning after the later of--
(1) the date of issuance by the Secretary of Labor of
regulations providing guidance for simplifying defined
benefit plan calculations with respect to the information
required under section 105 of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1025), or
(2) December 31, 1998.
SEC. 202. REQUIREMENT OF ANNUAL, DETAILED INVESTMENT REPORTS
APPLIED TO CERTAIN 401(K) PLANS.
(a) In General.--Section 104(b)(3) (29 U.S.C. 1024(b)(3))
is amended--
(1) by inserting ``(A)'' after ``(3)''; and
(2) by adding at the end the following new subparagraph:
``(B)(i) If, for any plan year, a plan includes a qualified
cash or deferred arrangement (as defined in section 401(k)(2)
of the Internal Revenue Code of 1986) and such plan covers
less than 100 participants, the administrator shall furnish
(within 60 days after the end of such plan year) to each
participant and to each beneficiary receiving benefits under
the plan an annual investment report detailing such
information as the Secretary by regulation shall require.
``(ii) Clause (i) shall not apply with respect to any
participant described in section 404(c).''
(b) Regulations.--
(1) In general.--The Secretary of Labor, in prescribing
regulations required under section 104(b)(3)(B)(i) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1023(b)(3)(B)(i)), as added by subsection (a), shall consider
including in the information required in an annual investment
report the following:
(A) Total plan assets and liabilities as of the beginning
and ending of the plan year.
(B) Plan income and expenses and contributions made and
benefits paid for the plan year.
(C) Any transaction between the plan and the employer, any
fiduciary, or any 10-percent owner during the plan year,
including the acquisition of any employer security or
employer real property.
(D) Any noncash contributions made to or purchases of
nonpublicly traded securities made by the plan during the
plan year without an appraisal by an independent third party.
(2) Electronic transfer.--The Secretary of Labor in
prescribing such regulations shall also make provision for
the electronic transfer of the required annual investment
report by a plan administrator to plan participants and
beneficiaries.
(c) Effective Date.--The amendment made by subsection (a)
shall apply to plan years beginning after the date of the
enactment of this Act.
SEC. 203. INFORMATION REQUIRED TO BE PROVIDED TO INVESTMENT
MANAGERS OF 401(K) PLANS.
(a) In General.--Section 105 (29 U.S.C. 1025) is amended by
adding at the end the following new subsection:
``(e) If--
``(1) the administrator of an individual account plan
described in section 401(k) of the Internal Revenue Code of
1986 provides for investment of the plan assets by means of a
contractual arrangement with another party, and
``(2) such other party is not required under such
arrangement to separately account for benefits accrued with
respect to each participant and beneficiary under this plan,
such administrator shall be treated as failing to meet the
requirements of subsection (a) unless, under such contractual
arrangement, such administrator provides to such other party
such information as is necessary to enable such party to
separately account at any time for benefits accrued with
respect to each participant and beneficiary.''
(b) Civil Penalty for Violations.--Paragraph (1) of section
502(c) (29 U.S.C. 1132(c)(1)) is amended by striking ``or
section 101(e)(1)'' and inserting ``, section 101(e)(1), or
section 105(e)''.
SEC. 204. STUDY ON INVESTMENTS IN COLLECTIBLES.
(a) Study.--The Secretary of Labor, in consultation with
the Secretary of the Treasury, shall study the extent to
which pension plans invest in collectibles and whether such
investments present a risk to the pension security of the
participants and beneficiaries of such plans.
(b) Report.--Not later than 12 months after the date of the
enactment of this Act, the Secretary of Labor shall submit a
report to the Congress containing the findings of the study
described in subsection (a) and any recommendations for
legislative action.
SEC. 205. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING
LOANS THROUGH CREDIT CARDS AND OTHER
INTERMEDIARIES.
(a) In General.--Subsection (a) of section 401 of the
Internal Revenue Code of 1986 is amended by adding after
paragraph (34) the following new paragraph:
``(35) Prohibition of loans through credit cards and other
intermediaries.--A trust shall not constitute a qualified
trust under this section if the plan makes any loan to any
beneficiary under the plan through the use of any credit card
or any other intermediary.''
(b) Effective Date.--The amendment made by subsection (a)
shall apply to plan years beginning after the date of the
enactment of this Act.
SEC. 206. MULTIEMPLOYER PLAN BENEFITS GUARANTEED.
(a) In General.--Section 4022A(c) (29 U.S.C. 1322a(c)) is
amended--
(1) by striking ``$5'' each place it appears in paragraph
(1) and inserting ``$11'',
(2) by striking ``$15'' in paragraph (1) and inserting
``$33'', and
(3) by striking paragraphs (2), (5), and (6) and by
redesignating paragraphs (3) and (4) as paragraphs (2) and
(3), respectively.
(b) Effective Date.--The amendments made by this section
shall apply to any multiemployer plan that has not received
financial assistance (within the meaning of section 4261 of
the Employee Retirement Income Security Act of 1974) within
the 1-year period ending on the date of the enactment of this
Act.
SEC. 207. PROHIBITED TRANSACTIONS.
(a) In General.--Section 502(i) (29 U.S.C. 1132(i)) is
amended by striking ``5 percent'' and inserting ``15
percent''.
(b) Effective Date.--The amendments made by this section
shall apply to prohibited transactions occurring after the
date of the enactment of this Act.
SEC. 208. SUBSTANTIAL OWNER BENEFITS.
(a) Modification of Phase-in of Guarantee.--Subparagraphs
(B) and (C) of section 4022(b)(5) (29 U.S.C. 1322(b)(5)) are
amended to read as follows:
``(B) For purposes of this title, the term `majority owner'
has the same meaning as substantial owner under subparagraph
(A), except that subparagraph (A) shall be applied by
substituting `50 percent or more' for `more than 10 percent'
each place it appears.
``(C) In the case of a participant who is a majority owner,
the amount of benefits guaranteed under this section shall
not exceed the product of--
``(i) a fraction (not to exceed 1) the numerator of which
is the number of years from the later of the effective date
or the adoption date of the plan to the termination date, and
the denominator of which is 30, and
``(ii) the amount of the majority owner's monthly benefits
guaranteed under subsection (a) (as limited by paragraph (3)
of this subsection).''
(b) Modification of Allocation of Assets.--
(1) Section 4044(a)(4)(B) (29 U.S.C. 1344(a)(4)(B)) is
amended by striking ``section 4022(b)(5)'' and inserting
``section 4022(b)(5)(C)''.
(2) Section 4044(b) (29 U.S.C. 1344(b)) is amended--
(A) by striking ``(5)'' in paragraph (2) and inserting
``(4), (5),'', and
(B) by redesignating paragraphs (3) through (6) as
paragraphs (4) through (7), respectively, and by inserting
after paragraph (2) the following new paragraph:
``(3) If assets available for allocation under paragraph
(4) of subsection (a) are insufficient to satisfy in full the
benefits of all individuals who are described in that
paragraph, the assets shall be allocated first to benefits
described in subparagraph (A) of that paragraph. Any
remaining assets shall then be allocated to subparagraph (B).
If assets allocated to subparagraph (B) are insufficient to
satisfy in full the benefits in that subparagraph, the assets
shall be allocated pro rata among individuals on the basis of
the present value (as of the termination date) of their
respective benefits described in that subparagraph.''
(c) Effective Date.--The amendments made by this section
shall apply to plan terminations--
(1) under section 4041(c) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1341(c)) with respect to
which notices of intent to terminate are provided under
section 4041(a)(2) of such Act (29 U.S.C. 1341(a)(2)) on or
after the date of the enactment of this Act, or
(2) under section 4042 of such Act (29 U.S.C. 1342) with
respect to which proceedings are instituted by the
corporation on or after such date.
SEC. 209. REVERSION REPORT.
(a) In General.--Section 4008 (29 U.S.C. 1308) is amended
by adding at the end the following new subsection:
``(b) Reversion Report.--As soon as practicable after the
close of each fiscal year, the Secretary of Labor (acting in
the Secretary's capacity as chairman of the corporation's
board) shall transmit to the President and the Congress a
report providing information on plans from which residual
assets were distributed to employers pursuant to section
4044(d).''
(b) Conforming Amendment.--Section 4008 (29 U.S.C. 1308) is
amended by striking ``Sec. 4008.'' and inserting ``Sec. 4008.
(a) Annual Report.--''.
[[Page S7273]]
(c) Effective Date.--The amendments made by this section
shall apply to fiscal years beginning after September 30,
1998.
Subtitle B--ERISA Enforcement
SEC. 211. CIVIL PENALTIES FOR BREACH OF FIDUCIARY
RESPONSIBILITIES MADE DISCRETIONARY, ETC.
(a) Imposition and Amount of Penalty Made Discretionary.--
Section 502(l)(1) (29 U.S.C. 1132(l)) is amended--
(1) by striking ``shall'' and inserting ``may'', and
(2) by striking ``equal to'' and inserting ``not greater
than''.
(b) Applicable Recovery Amount.--Section 502(l)(2) (29
U.S.C. 1132(l)(2)) is amended to read as follows:
``(2) For purposes of paragraph (1), the term `applicable
recovery amount' means any amount which is recovered from (or
on behalf of) any fiduciary or other person with respect to a
breach or violation described in paragraph (1) on or after
the 30th day following receipt by such fiduciary or other
person of written notice from the Secretary of the violation,
whether paid voluntarily or by order of a court in a judicial
proceeding instituted by the Secretary under paragraph (2) or
(5) of subsection (a). The Secretary may, in the Secretary's
sole discretion, extend the 30-day period described in the
preceding sentence.''.
(c) Other Rules.--Section 502(l) is amended by adding at
the end the following new paragraphs:
``(5) A person shall be jointly and severally liable for
the penalty described in paragraph (1) to the same extent
that such person is jointly and severally liable for the
applicable recovery amount on which the penalty is based.
``(6) No penalty shall be assessed under this subsection
unless the person against whom the penalty is assessed is
given notice and opportunity for a hearing with respect to
the violation and applicable recovery amount.''
(d) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to any breach of fiduciary responsibility or other
violation of part 4 of title I of the Employee Retirement
Income Security Act of 1974 occurring on or after the date of
the enactment of this Act.
(2) Transition rule.--In applying the amendment made by
subsection (b), a breach or other violation occurring before
the date of the enactment of this Act which continues after
the 180th day after such date (and which may be discontinued
at any time during its existence) shall be treated as having
occurred on the day after such date of enactment.
SEC. 212. REPORTING AND ENFORCEMENT REQUIREMENTS FOR EMPLOYEE
BENEFIT PLANS.
(a) In General.--Part 1 of subtitle B of title I (29 U.S.C.
1021 et seq.) is amended--
(1) by redesignating section 111 as section 112, and
(2) inserting after section 110 the following new section:
``direct reporting of certain events
``Sec. 111. (a) Required Notifications.--
``(1) Notifications by plan administrator.--Within 5
business days after an administrator of an employee benefit
plan determines that there is evidence (or after the
administrator is notified under paragraph (2)) that an
irregularity may have occurred with respect to the plan, the
administrator shall--
``(A) notify the Secretary of the irregularity in writing;
and
``(B) furnish a copy of such notification to the accountant
who is currently engaged under section 103(a)(3)(A).
``(2) Notifications by accountant.--
``(A) In general.--Within 5 business days after an
accountant engaged by the administrator of an employee
benefit plan under section 103(a)(3)(A) determines in
connection with such engagement that there is evidence that
an irregularity may have occurred with respect to the plan,
the accountant shall--
``(i) notify the plan administrator of the irregularity in
writing, or
``(ii) if the accountant determines that there is evidence
that the irregularity may have involved an individual who is
the plan administrator or who is a senior official of the
plan administrator, notify the Secretary of the irregularity
in writing.
``(B) Notification upon failure of plan administrator to
notify.--If an accountant who has provided notification to
the plan administrator pursuant to subparagraph (A)(i) does
not receive a copy of the administrator's notification to the
Secretary required in paragraph (1) within the 5-business day
period specified therein, the accountant shall furnish to the
Secretary a copy of the accountant's notification made to the
plan administrator on the next business day following such
period.
``(3) Irregularity defined.--
``(A) For purposes of this subsection, the term
`irregularity' means--
``(i) a theft, embezzlement, or a violation of section 664
of title 18, United States Code (relating to theft or
embezzlement from an employee benefit plan);
``(ii) an extortion or a violation of section 1951 of title
18, United States Code (relating to interference with
commerce by threats or violence);
``(iii) a bribery, a kickback, or a violation of section
1954 of title 18, United States Code (relating to offer,
acceptance, or solicitation to influence operations of an
employee benefit plan);
``(iv) a violation of section 1027 of title 18, United
States Code (relating to false statements and concealment of
facts in relation to employee benefit plan records); or
``(v) a violation of section 411, 501, or 511 of this title
(relating to criminal violations).
``(B) The term `irregularity' does not include any act or
omission described in this paragraph involving less than
$1,000 unless there is reason to believe that the act or
omission may bear on the integrity of plan management.
``(b) Notification Upon Termination of Engagement of
Accountant.--
``(1) Notification by plan administrator.--Within 5
business days after the termination of an engagement of an
accountant under section 103(a)(3)(A) with respect to an
employee benefit plan, the administrator of such plan shall--
``(A) notify the Secretary in writing of such termination,
giving the reasons for such termination, and
``(B) furnish the accountant whose engagement was
terminated with a copy of the notification sent to the
Secretary.
``(2) Notification by accountant.--If the accountant
referred to in paragraph (1)(B) has not received a copy of
the administrator's notification to the Secretary as required
under paragraph (1)(B), or if the accountant disagrees with
the reasons given in the notification of termination of the
engagement for auditing services, the accountant shall notify
the Secretary in writing of the termination, giving the
reasons for the termination, within 10 business days after
the termination of the engagement.
``(c) Determination of Periods Required for Notification.--
In determining whether a notification required under this
section with respect to any act or omission has been made
within the required number of business days--
``(1) the day on which such act or omission begins shall
not be included; and
``(2) Saturdays, Sundays, and legal holidays shall not be
included.
For purposes of this subsection, the term `legal holiday'
means any Federal legal holiday and any other day appointed
as a holiday by the State in which the person responsible for
making the notification principally conducts business.
``(d) Immunity for Good Faith Notification.--No accountant
or plan administrator shall be liable to any person for any
finding, conclusion, or statement made in any notification
made pursuant to subsection (a)(2) or (b)(2), or pursuant to
any regulations issued under those subsections, if the
finding, conclusion, or statement is made in good faith.''
(b) Civil Penalty.--
(1) In general.--Section 502(c) (29 U.S.C. 1132(c)) is
amended by inserting after paragraph (6) the following new
paragraph:
``(8)(A) The Secretary may assess a civil penalty of up to
$50,000 against any administrator who fails to provide the
Secretary with any notification as required under section
111.
``(B) The Secretary may assess a civil penalty of up to
$50,000 against any accountant who knowingly and willfully
fails to provide the Secretary with any notification as
required under section 111.''
(2) Conforming amendment.--Section 502(a)(6) (29 U.S.C.
1132(a)(6)) is amended by striking ``or (6)'' and inserting
``(6), or (8)''.
(c) Clerical Amendments.--
(1) Section 514(d) (29 U.S.C. 114(d)) is amended by
striking ``111'' and inserting ``112''.
(2) The table of contents in section 1 is amended by
striking the item relating to section 111 and inserting the
following new items:
``Sec. 111. Direct reporting of certain events.
``Sec. 112. Repeal and effective date.''
(d) Effective Date.--The amendments made by this section
shall apply with respect to any irregularity or termination
of engagement described in the amendments only if the 5-day
period described in the amendments in connection with the
irregularity or termination commences at least 90 days after
the date of the enactment of this Act.
SEC. 213. ADDITIONAL REQUIREMENTS FOR QUALIFIED PUBLIC
ACCOUNTANTS.
(a) In General.--Section 103(a)(3)(D) (29 U.S.C.
1023(a)(3)(D)) is amended--
(1) by inserting ``(i)'' after ``(D)'';
(2) by inserting ``, with respect to any engagement of an
accountant under subparagraph (A)'' after ``means'';
(3) by redesignating clauses (i), (ii), and (iii) as
subclauses (I), (II), and (III), respectively;
(4) by striking the period at the end of subclause (III)
(as so redesignated) and inserting a comma;
(5) by adding after and below subclause (III) (as so
redesignated), the following: ``but only if such person meets
the requirements of clauses (ii) and (iii), with respect to
such engagement.''; and
(6) by adding at the end the following new clauses:
``(ii) A person meets the requirements of this clause with
respect to an engagement of the person as an accountant under
subparagraph (A) if the person--
``(I) has in operation an appropriate internal quality
control system;
``(II) has undergone a qualified external quality control
review of the person's accounting and auditing practices,
including such practices relevant to employee benefit plans
(if any), during the 3-year period immediately preceding such
engagement; and
``(III) has completed, within the 2 calendar years
immediately preceding such engagement, such continuing
education or training
[[Page S7274]]
as the Secretary in regulations determines is necessary to
maintain professional proficiency in connection with employee
benefit plans.
``(iii) A person meets the requirements of this clause with
respect to an engagement of the person as an accountant under
subparagraph (A) if the person meets such additional
requirements and qualifications of regulations which the
Secretary deems necessary to ensure the quality of plan
audits.
``(iv) For purposes of clause (ii)(II), an external quality
control review shall be treated as qualified with respect to
a person referred to in clause (ii) if--
``(I) such review is performed in accordance with the
requirements of external quality control review programs of
recognized auditing standard setting bodies, as determined in
regulations of the Secretary, and
``(II) in the case of any such person who has, during the
peer review period, conducted 1 or more previous audits of
employee benefit plans, such review includes the review of an
appropriate number (determined as provided in such
regulations, but in no case less than 1) of plan audits in
relation to the scale of the person's auditing practice.
(b) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section apply with respect to plan
years beginning on or after the date which is 3 years after
the date of the enactment of this Act.
(2) Restrictions on conducting examinations.--Clause (iii)
of section 103(a)(1)(D) of the Employee Retirement Income
Security Act of 1974 (as added by subsection (a)(6)) takes
effect on the date of enactment of this Act.
(3) Regulations.--The Secretary shall issue regulations
under this section no later than December 31, 1999.
SEC. 214. INSPECTOR GENERAL STUDY.
(a) Study.--The Inspector General of the Department of
Labor shall conduct a study on the need for regulatory
standards and procedures to authorize the Secretary, in
appropriate cases, to prohibit persons from serving as
qualified accountants for purposes of section 103 of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1023).
(b) Matters To Be Studied.--In conducting the study under
this section, the Inspector General shall address whether
standards and procedures to prohibit persons from serving as
qualified public accountants are likely to improve the
quality of employee benefit plan audits, and the potential
for increased costs to plans. If the Inspector General
concludes that regulations incorporating standards and
procedures would be appropriate, the study shall include
recommended standards and procedures.
(c) Report.--Not later than 1 year after the date of the
enactment of this Act, the Inspector General shall submit a
report on the results of the study conducted pursuant to this
section to each house of Congress and the Secretary of Labor.
Subtitle C--Increase in Excise Tax on Employer Reversions
SEC. 221. INCREASE IN EXCISE TAX.
(a) In General.--Section 4980 of the Internal Revenue Code
of 1986 (relating to tax on reversion of qualified plan
assets to employer) is amended--
(1) in subsection (a), by striking ``20 percent'' and
inserting ``35 percent''; and
(2) in subsection (d)(1), by striking ``substituting `50
percent' for `20 percent' with respect to any employer
reversion'' and inserting ``substituting `65 percent' for `35
percent' with respect to any employer reversion''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to reversions
occurring after December 31, 1998.
(2) Exception.--The amendment made by this section shall
not apply to any reversion after December 31, 1998, if--
(A) in the case of plans subject to title IV of the
Employee Retirement Income Security Act of 1974, a notice of
intent to terminate under such title was provided to
participants (or if no participants, to the Pension Benefit
Guaranty Corporation) before June 25, 1998,
(B) in the case of plans subject to title I (and not to
title IV) of such Act, a notice of intent to reduce future
accruals under section 204(h) of such Act was provided to
participants in connection with the termination before June
25, 1998,
(C) in the case of plans not subject to title I or IV of
such Act, a request for a determination letter with respect
to the termination was filed with the Secretary of the
Treasury or the Secretary's delegate before June 25, 1998, or
(D) in the case of plans not subject to title I or IV of
such Act and having only 1 participant, a resolution
terminating the plan was adopted by the employer before June
25, 1998.
TITLE III--PORTABILITY
SEC. 301. FASTER VESTING OF EMPLOYER MATCHING CONTRIBUTIONS.
(a) Amendment of Internal Revenue Code.--Paragraph (2) of
section 411(a) of the Internal Revenue Code of 1986 (relating
to employer contributions) is amended--
(1) by inserting ``, and, if applicable, (C)'' after ``or
(B)'', and
(2) by adding at the end the following new subparagraph:
``(C) Matching contributions.--In the case of a plan that
includes an accrued benefit derived from matching
contributions (as defined in section 401(m)(4)(A)), the plan
satisfies the requirements of this subparagraph if--
``(i) an employee who has completed at least 3 years of
service has a nonforfeitable right to 100 percent of the
employee's accrued benefit derived from such matching
contributions, or
``(ii) an employee has a nonforfeitable right to a
percentage of the employee's accrued benefit derived from
employer matching contributions (as so defined) determined
under the following table:
The nonforfeitable
``Years of service: percentage is:
2.............................................................20 ....
3.............................................................40 ....
4.............................................................60 ....
5.............................................................80 ....
6..........................................................100.''....
(b) Amendment of ERISA.--Paragraph (2) of section 203(a) of
the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1053(a)) is amended--
(1) by inserting ``, and, if applicable, (C)'' after ``or
(B)'', and
(2) by adding at the end the following new subparagraph:
``(C) Matching contributions.--In the case of a plan that
includes an accrued benefit derived from matching
contributions (as defined in section 401(m)(4)(A) of the
Internal Revenue Code of 1986), the plan satisfies the
requirements of this subparagraph if--
``(i) an employee who has completed at least 3 years of
service has a nonforfeitable right to 100 percent of the
employee's accrued benefit derived from such matching
contributions, or
``(ii) an employee has a nonforfeitable right to a
percentage of the employee's accrued benefit derived from
employer matching contributions (as so defined) determined
under the following table:
The nonforfeitable
``Years of service: percentage is:
2.............................................................20 ....
3.............................................................40 ....
4.............................................................60 ....
5.............................................................80 ....
6..........................................................100.''....
(c) Effective Date.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to plan
years beginning after December 31, 1998.
(2) Application to current employees.--The amendments made
by this section shall not apply to any employee who does not
have at least 1 hour of service in any plan year beginning
after December 31, 1998.
(3) Collective bargaining agreements.--In the case of a
plan maintained pursuant to 1 or more collective bargaining
agreements between employee representatives and 1 or more
employers ratified by the date of the enactment of this Act,
the amendments made by this section shall not apply to
employees covered by any such agreement in plan years
beginning before the earlier of--
(A) the later of--
(i) the date on which the last of such collective
bargaining agreements terminates (determined without regard
to any extension thereof on or after such date of enactment),
or
(ii) January 1, 1999, or
(B) January 1, 2003.
SEC. 302. RATIONALIZATION OF THE RESTRICTIONS ON
DISTRIBUTIONS FROM 401(K) PLANS.
(a) In General.--Section 401(k)(2)(B)(i)(I) of the Internal
Revenue Code of 1986 (relating to qualified cash or deferred
arrangements) is amended by striking ``separation from
service'' and inserting ``severance from employment''.
(b) Business Sale Requirements Deleted.--
(1) In general.--Section 401(k)(2)(B)(i)(II) of the
Internal Revenue Code of 1986 (relating to qualified cash or
deferred arrangements) is amended by striking ``an event''
and inserting ``a plan termination''.
(2) Conforming amendments.--Section 401(k)(10) of such Code
is amended--
(A) by striking subparagraph (A) and inserting the
following:
``(A) In general.--A plan termination is described in this
paragraph if the termination of the plan is without
establishment or maintenance of another defined contribution
plan (other than an employee stock ownership plan as defined
in section 4975(e)(7)).'',
(B) by striking subparagraph (C), and
(C) by striking ``or disposition of assets or subsidiary''
in the heading.
(c) Effective Date.--The amendments made by this section
shall apply to distributions after December 31, 1998.
SEC. 303. TREATMENT OF TRANSFERS BETWEEN DEFINED CONTRIBUTION
PLANS.
(a) In General.--Section 411(d)(6) of the Internal Revenue
Code of 1986 (relating to accrued benefit not to be decreased
by amendment) is amended by adding at the end the following
new subparagraph:
``(D) Plan transfers.--A defined contribution plan (in this
subparagraph referred to as the `transferee plan') shall not
be treated as failing to meet the requirements of this
paragraph merely because the transferee plan does not provide
some or all of the forms of distribution previously available
under another defined contribution plan (in this subparagraph
referred to as the `transferor plan') to the extent that--
``(i) the forms of distribution previously available under
the transferor plan applied to the account of a participant
or beneficiary
[[Page S7275]]
under the transferor plan that was transferred from the
transferor plan to the transferee plan pursuant to a direct
transfer rather than pursuant to a distribution from the
transferor plan,
``(ii) the terms of both the transferor plan and the
transferee plan authorize the transfer described in clause
(i),
``(iii) the transfer described in clause (i) was made
pursuant to a voluntary election by the participant or
beneficiary whose account was transferred to the transferee
plan,
``(iv) the election described in clause (iii) was made
after the participant or beneficiary received a notice
describing the consequences of making the election,
``(v) if the transferor plan provides for an annuity as the
normal form of distribution under the plan in accordance with
section 417, the transfer is made with the consent of the
participant's spouse (if any), and such consent meets
requirements similar to the requirements imposed by section
417(a)(2), and
``(vi) the transferee plan allows the participant or
beneficiary described in clause (iii) to receive any
distribution to which the participant or beneficiary is
entitled under transferee plan in the form of a single sum
distribution.''
(b) Conforming Amendment.--Section 204(g) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1054(g)) is
amended by adding at the end the following new paragraph:
``(4) A defined contribution plan (in this paragraph
referred to as the `transferee plan') shall not be treated as
failing to meet the requirements of this subsection merely
because the transferee plan does not provide some or all of
the forms of distribution previously available under another
defined contribution plan (in this paragraph referred to as
the `transferor plan') to the extent that--
``(A) the forms of distribution previously available under
the transferor plan applied to the account of a participant
or beneficiary under the transferor plan that was transferred
from the transferor plan to the transferee plan pursuant to a
direct transfer rather than pursuant to a distribution from
the transferor plan,
``(B) the terms of both the transferor plan and the
transferee plan authorize the transfer described in
subparagraph (A),
``(C) the transfer described in subparagraph (A) was made
pursuant to a voluntary election by the participant or
beneficiary whose account was transferred to the transferee
plan,
``(D) the election described in subparagraph (C) was made
after the participant or beneficiary received a notice
describing the consequences of making the election,
``(E) if the transferor plan provides for an annuity as the
normal form of distribution under the plan in accordance with
section 205, the transfer is made with the consent of the
participant's spouse (if any), and such consent meets
requirements similar to the requirements imposed by section
205(c)(2), and
``(F) the transferee plan allows the participant or
beneficiary described in subparagraph (C) to receive any
distribution to which the participant or beneficiary is
entitled under transferee plan in the form of a single sum
distribution.''
(b) Effective Date.--The amendments made by this section
shall apply to transfers after December 31, 1998.
SEC. 304. MISSING PARTICIPANTS.
(a) In General.--Section 4050 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1350) is amended by
redesignating subsection (c) as subsection (e) and by
inserting after subsection (b) the following new subsections:
``(c) Multiemployer Plans.--The corporation shall prescribe
rules similar to the rules in subsection (a) for
multiemployer plans covered by this title that terminate
under section 4041A.
``(d) Plans Not Otherwise Subject to Title.--
``(1) Transfer to corporation.--The plan administrator of a
plan described in paragraph (4) may elect to transfer a
missing participant's benefits to the corporation upon
termination of the plan.
``(2) Information to the corporation.--To the extent
provided in regulations, the plan administrator of a plan
described in paragraph (4) shall, upon termination of the
plan, provide the corporation information with respect to
benefits of a missing participant if the plan transfers such
benefits--
``(A) to the corporation, or
``(B) to an entity other than the corporation or a plan
described in paragraph (4)(B)(ii).
``(3) Payment by the corporation.--If benefits of a missing
participant were transferred to the corporation under
paragraph (1), the corporation shall, upon location of the
participant or beneficiary, pay to the participant or
beneficiary the amount transferred (or the appropriate
survivor benefit) either--
``(A) in a single sum (plus interest), or
``(B) in such other form as is specified in regulations of
the corporation.
``(4) Plans described.--A plan is described in this
paragraph if--
``(A) the plan is a pension plan (within the meaning of
section 3(2))--
``(i) to which the provisions of this section do not apply
(without regard to this subsection), and
``(ii) which is not a plan described in paragraphs (2)
through (11) of section 4021(b), and
``(B) at the time the assets are to be distributed upon
termination, the plan--
``(i) has missing participants, and
``(ii) has not provided for the transfer of assets to pay
the benefits of all missing participants to another pension
plan (within the meaning of section 3(2)).
``(5) Certain provisions not to apply.--Subsections (a)(1)
and (a)(3) shall not apply to a plan described in paragraph
(4).''
(b) Conforming Amendments.--
(1) Section 206(f) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1056(f)) is amended--
(A) by striking ``title IV'' and inserting ``section
4050'', and
(B) by striking ``the plan shall provide that,''.
(2) Section 401(a)(34) of the Internal Revenue Code of 1986
(relating to benefits of missing participants on plan
termination) is amended by striking ``title IV'' and
inserting ``section 4050''.
(c) Effective Date.--The amendments made by this section
shall apply to distributions made after final regulations
implementing subsections (c) and (d) of section 4050 of the
Employee Retirement Income Security Act of 1974 (as added by
subsection (a)), respectively, are prescribed.
SEC. 305. ALLOWANCE OF ROLLOVERS FROM AND TO 403(B) PLANS.
(a) Rollovers From Section 403(b) Plans.--Section
403(b)(8)(A)(ii) of the Internal Revenue Code of 1986
(relating to rollover amounts) is amended by striking ``such
distribution'' and all that follows and inserting ``such
distribution to an eligible retirement plan described in
section 402(c)(8)(B), and''.
(b) Rollovers to Section 403(b) Plans.--Section
402(c)(8)(B) of such Code (defining eligible retirement plan)
is amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iv) and inserting
``, and'', and by adding at the end the following:
``(v) an annuity contract described in section 403(b).''
(c) Conforming Amendments.--
(1) Section 72(o)(4) of such Code is amended by striking
``and 408(d)(3)'' and inserting ``403(b)(8), and 408(d)(3)''.
(2) Section 401(a)(31)(B) of such Code is amended by
striking ``and 403(a)(4)'' and inserting ``, 403(a)(4), and
403(b)(8)''.
(3) Subparagraph (B) of section 403(b)(8) of such Code is
amended by inserting ``and (9)'' after ``through (7)''.
(4) Subparagraphs (A) and (B) of section 415(b)(2) of such
Code are each amended by striking ``and 408(d)(3)'' and
inserting ``403(b)(8), and 408(d)(3)''.
(d) Effective Date; Special Rule.--
(1) Effective date.--The amendments made by this section
shall apply to distributions after December 31, 1998.
(2) Special rule.--Notwithstanding any other provision of
law, subsections (h)(3) and (h)(5) of section 1122 of the Tax
Reform Act of 1986 shall not apply to any distribution from
an eligible retirement plan on behalf of an individual if
there was a rollover to such plan on behalf of such
individual which is permitted solely by reason of any
amendment made by this section.
SEC. 306. ROLLOVER CONTRIBUTIONS FROM DEFERRED COMPENSATION
PLANS OF STATE AND LOCAL GOVERNMENTS.
(a) Rollovers From Section 457 Plans.--
(1) In general.--Section 457(e) of the Internal Revenue
Code of 1986 (relating to other definitions and special
rules) is amended by adding at the end the following:
``(16) Rollover amounts.--
``(A) General rule.--In the case of an eligible deferred
compensation plan of an eligible employer described in
paragraph (1)(A), if--
``(i) any portion of the balance to the credit of an
employee in such plan is paid to such employee in a rollover
distribution (other than a distribution described in
subsection (d)(1)(A)(iii) or in subparagraph (A) or (B) of
section 402(c)(4)),
``(ii) the employee transfers any portion of the property
such employee receives in such distribution to an individual
retirement plan (as defined in section 7701(a)(37), and
``(iii) in the case of a distribution of property other
than money, the amount so transferred consists of the
property distributed,
then such distribution (to the extent so transferred) shall
not be includible in gross income for the taxable year in
which paid.
``(B) Certain rules made applicable.--Rules similar to the
rules of section 401(a)(31), paragraphs (2), (3), (5), (6),
(7), and (9) of section 402(c), and section 402(f) shall
apply for purposes of subparagraph (A).''
(2) Distribution requirements.--Section 457(d)(1)(A) of
such Code (relating to distribution requirements) is amended
by inserting ``except as provided in subsection (e)(16),''
after ``(A)''.
(3) Conforming amendments.--
(A) Section 72(o)(4) of such Code is amended--
(i) by striking ``and 408(d)(3)'' and inserting
``408(d)(3), and 457(e)(16)'',
(ii) by inserting ``or excludable'' after ``deductible''
each place it appears, and
(iii) in the heading by inserting ``or Excludable'' after
``Deductible''.
(B) Section 219(d)(2) of such Code is amended by striking
``or 408(d)(3)'' and inserting ``408(d)(3), or 457(e)(16)''.
(C) Section 401(a)(31)(B) of such Code is amended by
striking ``and 403(b)(8)'' and inserting ``, 403(b)(8), and
457(e)(16)''.
(D) Paragraph (4) of section 402(c) of such Code is amended
by inserting ``or in an eligible deferred compensation plan
(as defined in
[[Page S7276]]
section 457(b)) of an eligible employer described in section
457(e)(1)(A)'' after ``qualified trust''.
(E) Section 408(a)(1) of such Code is amended by striking
``or 403(b)(8)'' and inserting ``, 403(b)(8), or
457(e)(16)''.
(F) Section 408(d)(3)(A)(ii) of such Code is amended by
striking ``or'' after ``501(a)'' and inserting a comma, and
by inserting ``, or from an eligible deferred compensation
plan described in section 457(b)'' after ``contribution)''.
(G) Subparagraphs (A) and (B) of section 415(b)(2) of such
Code are each amended by striking ``and 408(d)(3)'' and
inserting ``408(d)(3), and 457(e)(16)''.
(H) Section 4973(b)(1)(A) of such Code is amended by
striking ``or 408(d)(3)'' and inserting ``408(d)(3), or
457(e)(16)''.
(d) Effective Date; Special Rule.--
(1) Effective date.--The amendments made by this section
shall apply to distributions after December 31, 1998.
(2) Special rule.--Notwithstanding any other provision of
law, subsections (h)(3) and (h)(5) of section 1122 of the Tax
Reform Act of 1986 shall not apply to any distribution from
an individual retirement plan on behalf of an individual if
there was a rollover to such plan on behalf of such
individual which is permitted solely by reason of any
amendment made by this section.
SEC. 307. EXTENSION OF 60-DAY ROLLOVER PERIOD IN THE CASE OF
PRESIDENTIALLY DECLARED DISASTERS AND SERVICE
IN COMBAT ZONE.
(a) In General.--Paragraph (1) of section 7508(a) of the
Internal Revenue Code of 1986 (relating to time postponed for
performing certain acts) is amended by striking ``and'' at
the end of subparagraph (J), by redesignating subparagraph
(K) as subparagraph (L), and by inserting after subparagraph
(J) the following new subparagraph:
``(K) Rollover of any distribution within the 60-day period
specified in section 402(c)(3) or 408(d)(3)(A); and''.
(b) Effective Date.--The amendment made by this section
shall apply to distributions made after December 31, 1998.
SEC. 308. PURCHASE OF SERVICE CREDIT IN GOVERNMENTAL DEFINED
BENEFIT PLANS.
(a) 403(b) Plans.--Subsection (b) of section 403 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(13) Trustee-to-trustee transfers to purchase permissive
service credit.--No amount shall be includible in gross
income by reason of a direct trustee-to-trustee transfer to a
defined benefit governmental plan (as defined in section
414(d)) if such transfer is--
``(A) for the purchase of permissive service credit (as
defined in section 415(n)(3)(A)) under such plan, or
``(B) a repayment to which section 415 does not apply by
reason of subsection (k)(3) thereof.''
(b) 457 Plans.--Subsection (e) of section 457 of such Code,
as amended by section 306, is amended by adding at the end
the following new paragraph:
``(17) Trustee-to-trustee transfers to purchase permissive
service credit.--No amount shall be includible in gross
income by reason of a direct trustee-to-trustee transfer to a
defined benefit governmental plan (as defined in section
414(d)) if such transfer is--
``(A) for the purchase of permissive service credit (as
defined in section 415(n)(3)(A)) under such plan, or
``(B) a repayment to which section 415 does not apply by
reason of subsection (k)(3) thereof.''
(c) Effective Date.--The amendments made by this section
shall apply to trustee-to-trustee transfers after December
31, 1998.
TITLE IV--COMPREHENSIVE WOMEN'S PENSION PROTECTION
Subtitle A--Pension Reform
SEC. 401. PENSION RIGHT TO KNOW PROPOSALS.
(a) Spouse's Right To Know Distribution Information.--
(1) Amendment of internal revenue code.--Paragraph (3) of
section 417(a) of the Internal Revenue Code of 1986 (relating
to definitions and special rules for purposes of minimum
survivor annuity requirements) is amended by adding at the
end the following new subparagraph:
``(C) Explanation to spouse.--At the time a plan provides a
participant with a written explanation under subparagraph (A)
or (B), such plan shall provide a copy of such explanation to
such participant's spouse. If the last known address of the
spouse is the same as the last known address of the
participant, the requirement of the preceding sentence shall
be treated as met if the copy referred to in the preceding
sentence is included in a single mailing made to such address
and addressed to both such participant and spouse.''
(2) Amendment of erisa.--Paragraph (3) of section 205(c) of
Employee Retirement Income Security Act of 1974 is amended by
adding at the end the following new subparagraph:
``(C) Explanation to spouse.--At the time a plan provides a
participant with a written explanation under subparagraph (A)
or (B), such plan shall provide a copy of such explanation to
such participant's spouse. If the last known address of the
spouse is the same as the last known address of the
participant, the requirement of the preceding sentence shall
be treated as met if the copy referred to in the preceding
sentence is included in a single mailing made to such address
and addressed to both such participant and spouse.''
(b) Employee's Right To Know of Opportunity for Elective
Contributions Under 401(k) Plans.--Subparagraph (D) of
section 401(k)(12) of the Internal Revenue Code of 1986
(relating to notice requirements) is amended--
(1) by striking ``, within a reasonable period before any
year,'' and inserting ``before the 60th day before the
beginning of any year'', and
(2) by adding at the end the following new flush sentence:
``The requirements of paragraph (11)(B)(iii) shall apply for
purposes of this subparagraph.''
SEC. 402. WOMEN'S PENSION TOLL-FREE PHONE NUMBER.
(a) In General.--The Secretary of Labor shall contract with
an independent organization to create a women's pension toll-
free telephone number and contact to serve as--
(1) a resource for women on pension questions and issues;
(2) a source for referrals to appropriate agencies; and
(3) a source for printed information.
(b) Authorization of Appropriations.--There are authorized
to be appropriated $1,000,000 for each of the fiscal years
1999, 2000, 2001, and 2002 to carry out subsection (a).
SEC. 403. MODIFICATION OF GOVERNMENT PENSION OFFSET.
(a) Wife's Insurance Benefits.--Section 202(b)(4)(A) of the
Social Security Act (42 U.S.C. 402(b)(4)(A)) is amended--
(1) by inserting ``the amount (if any) by which the sum of
such benefit (before reduction under this paragraph) and''
after ``two-thirds of ''; and
(2) by inserting ``exceeds the amount described in
subsection (z) for such month,'' before ``if ''.
(b) Husband's Insurance Benefits.--Section 202(c)(2)(A) of
such Act (42 U.S.C. 402(c)(2)(A)) is amended--
(1) by inserting ``the amount (if any) by which the sum of
such benefit (before reduction under this paragraph) and''
after ``two-thirds of ''; and
(2) by inserting ``exceeds the amount described in
subsection (z) for such month,'' before ``if ''.
(c) Widow's Insurance Benefits.--Section 202(e)(7)(A) of
such Act (42 U.S.C. 402(e)(7)(A)) is amended--
(1) by inserting ``the amount (if any) by which the sum of
such benefit (before reduction under this paragraph) and''
after ``two-thirds of ''; and
(2) by inserting ``exceeds the amount described in
subsection (z) for such month,'' before ``if ''.
(d) Widower's Insurance Benefits.--Section 202(f)(2)(A) of
such Act (42 U.S.C. 402(f)(2)(A)) is amended--
(1) by inserting ``the amount (if any) by which the sum of
such benefit (before reduction under this paragraph) and''
after ``two-thirds of ''; and
(2) by inserting ``exceeds the amount described in
subsection (z) for such month,'' before ``if ''.
(e) Mother's and Father's Insurance Benefits.--Section
202(g)(4)(A) of such Act (42 U.S.C. 402(g)(4)(A)) is
amended--
(1) by inserting ``the amount (if any) by which the sum of
such benefit (before reduction under this paragraph) and''
after ``two-thirds of ''; and
(2) by inserting ``exceeds the amount described in
subsection (z) for such month,'' before ``if ''.
(f) Amount Described.--Section 202 of such Act (42 U.S.C.
402) is amended by adding at the end the following:
``(z) The amount described in this subsection is, for
months in each 12-month period beginning in December of 1998,
and each succeeding calendar year, the greater of--
``(1) $1200; or
``(2) the amount applicable for months in the preceding 12-
month period, increased by the cost-of-living adjustment for
such period determined for an annuity under section 8340 of
title 5, United States Code (without regard to any other
provision of law).''
(g) Limitations on Reductions in Benefits.--Section 202 of
such Act (42 U.S.C. 402), as amended by subsection (f), is
amended by adding at the end the following:
``(aa) For any month after December 1998, in no event shall
an individual receive a reduction in a benefit under
subsection (b)(4)(A), (c)(2)(A), (e)(7)(A), (f)(2)(A), or
(g)(4)(A) for the month that is more than the reduction in
such benefit that would have applied for such month under
such subsections as in effect on December 1, 1998.''
(h) Effective Date.--The amendments made by this section
shall apply with respect to monthly insurance benefits
payable under title II of the Social Security Act for months
after December 1998.
SEC. 404. PERIODS OF FAMILY AND MEDICAL LEAVE TREATED AS
HOURS OF SERVICE FOR PENSION PARTICIPATION AND
VESTING.
(a) Amendments of Internal Revenue Code.--
(1) Participation.--
(A) In general.--Paragraph (3) of section 410(a) of the
Internal Revenue Code of 1986 (relating to minimum
participation standards) is amended by adding at the end the
following new subparagraph:
``(E) Family and medical leave treated as service.--
[[Page S7277]]
``(i) In general.--For purposes of this subsection, in the
case of an individual who is absent from work on leave
required to be given to such individual under the Family and
Medical Leave Act of 1993, the plan shall treat as hours of
service--
``(I) the hours of service which otherwise would normally
have been credited to such individual but for such absence,
or
``(II) in any case in which the plan is unable to determine
the hours described in subclause (I), 8 hours of service per
day of absence.
``(ii) Year to which hours are credited.--The hours
described in clause (i) shall be treated as hours of service
as provided in this subparagraph--
``(I) only in the year in which the absence from work
begins, if a participant would have a year of service solely
because the period of absence is treated as hours of service
as provided in clause (i); or
``(II) in any other case, in the immediately following
year.''
(B) Coordination with treatment of maternity and paternity
absences under break in service rules.--Subparagraph (E) of
section 410(a)(5) of such Code is amended--
(i) by inserting ``not under family and medical leave act
of 1993'' after ``absences'' in the heading, and
(ii) by adding at the end of clause (i) the following new
sentence: ``The preceding sentence shall apply to an absence
from work only if no part of such absence is required to be
given under the Family and Medical Leave Act of 1993.''
(2) Vesting.--
(A) In general.--Paragraph (5) of section 411(a) of such
Code (relating to minimum vesting standards) is amended by
adding at the end the following new subparagraph:
``(E) Family and medical leave treated as service.--
``(i) In general.--For purposes of this subsection, in the
case of an individual who is absent from work on leave
required to be given to such individual under the Family and
Medical Leave Act of 1993, the plan shall treat as hours of
service--
``(I) the hours of service which otherwise would normally
have been credited to such individual but for such absence,
or
``(II) in any case in which the plan is unable to determine
the hours described in subclause (I), 8 hours of service per
day of absence.
``(ii) Year to which hours are credited.--The hours
described in clause (i) shall be treated as hours of service
as provided in this subparagraph--
``(I) only in the year in which the absence from work
begins, if a participant would have a year of service solely
because the period of absence is treated as hours of service
as provided in clause (i); or
``(II) in any other case, in the immediately following
year.''
(B) Coordination with treatment of maternity and paternity
absences under break in service rules.--Subparagraph (E) of
section 411(a)(6) of such Code is amended--
(i) by inserting ``not under family and medical leave act
of 1993'' after ``absences'' in the heading, and
(ii) by adding at the end of clause (i) the following new
sentence: ``The preceding sentence shall apply to an absence
from work only if no part of such absence is required to be
given under the Family and Medical Leave Act of 1993.''
(b) Amendments of ERISA.--
(1) Participation.--
(A) In general.--Paragraph (3) of section 202(a) of the
Employee Retirement Income Security Act of 1974 (relating to
minimum participation standards) is amended by adding at the
end the following new subparagraph:
``(E)(i) For purposes of this subsection, in the case of an
individual who is absent from work on leave required to be
given to such individual under the Family and Medical Leave
Act of 1993, the plan shall treat as hours of service--
``(I) the hours of service which otherwise would normally
have been credited to such individual but for such absence,
or
``(II) in any case in which the plan is unable to determine
the hours described in subclause (I), 8 hours of service per
day of absence.
``(ii) The hours described in clause (i) shall be treated
as hours of service as provided in this subparagraph--
``(I) only in the year in which the absence from work
begins, if a participant would have a year of service solely
because the period of absence is treated as hours of service
as provided in clause (i); or
``(II) in any other case, in the immediately following
year.''
(B) Coordination with treatment of maternity and paternity
absences under break in service rules.--Subparagraph (A) of
section 202(b)(5) of such Act is amended by adding at the end
of clause (i) the following new sentence: ``The preceding
sentence shall apply to an absence from work only if no part
of such absence is required to be given under the Family and
Medical Leave Act of 1993.''
(2) Vesting.--
(A) In general.--Paragraph (2) of section 203(b) of such
Act (relating to minimum vesting standards) is amended by
adding at the end the following new subparagraph:
``(E)(i) For purposes of this subsection, in the case of an
individual who is absent from work on leave required to be
given to such individual under the Family and Medical Leave
Act of 1993, the plan shall treat as hours of service--
``(I) the hours of service which otherwise would normally
have been credited to such individual but for such absence,
or
``(II) in any case in which the plan is unable to determine
the hours described in subclause (I), 8 hours of service per
day of absence.
``(ii) The hours described in clause (i) shall be treated
as hours of service as provided in this subparagraph--
``(I) only in the year in which the absence from work
begins, if a participant would have a year of service solely
because the period of absence is treated as hours of service
as provided in clause (i); or
``(II) in any other case, in the immediately following
year.''
(B) Coordination with treatment of maternity and paternity
absences under break in service rules.--Clause (i) of section
203(b)(3)(E) of such Act is amended by adding at the end of
clause (i) the following new sentence: ``The preceding
sentence shall apply to an absence from work only if no part
of such absence is required to be given under the Family and
Medical Leave Act of 1993.''
SEC. 405. PENSION INTEGRATION RULES.
(a) Applicability of New Integration Rules Extended to All
Existing Accrued Benefits.--Notwithstanding subsection (c)(1)
of section 1111 of the Tax Reform Act of 1986 (relating to
effective date of application of nondiscrimination rules to
integrated plans) (100 Stat. 2440), effective for plan years
beginning after the date of the enactment of this Act, the
amendments made by subsection (a) of such section 1111 shall
also apply to benefits attributable to plan years beginning
on or before December 31, 1988.
(b) Integration Disallowed for Simplified Employee
Pensions.--
(1) In general.--Subparagraph (D) of section 408(k)(3) of
the Internal Revenue Code of 1986 (relating to permitted
disparity under rules limiting discrimination under
simplified employee pensions) is repealed.
(2) Conforming amendment.--Subparagraph (C) of such section
408(k)(3) is amended by striking ``and except as provided in
subparagraph (D),''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to taxable years beginning on or
after January 1, 1998.
(c) Eventual Repeal of Integration Rules.--Effective for
plan years beginning on or after January 1, 2004--
(1) subparagraphs (C) and (D) of section 401(a)(5) of the
Internal Revenue Code of 1986 (relating to pension
integration exceptions under nondiscrimination requirements
for qualification) are repealed, and subparagraph (E) of such
section 401(a)(5) is redesignated as subparagraph (C); and
(2) subsection (l) of section 401 of such Code (relating to
nondiscriminatory coordination of defined contribution plans
with OASDI) is repealed.
SEC. 406. DIVISION OF PENSION BENEFITS UPON DIVORCE.
(a) Amendments to the Internal Revenue Code of 1986.--
Section 414(p) of the Internal Revenue Code of 1986 (relating
to qualified domestic relations order defined) is amended by
redesignating paragraph (12) as paragraph (13) and by adding
at the end the following new paragraph:
``(12) Special rules and procedures for domestic relations
orders not specifying division of pension benefits.--
``(A) In general.--If--
``(i) a domestic relations order (including an annulment or
other order of marital dissolution) relates to provision of
marital property with respect to a marriage of at least 5
years duration between the participant and the former spouse,
``(ii)(I) such order (and any prior order) does not
specifically provide that pension benefits were considered by
the parties and no division is intended, and
``(II) such order is not a qualified domestic relations
order without regard to this paragraph and there is no other
prior qualified domestic relations order issued in connection
with the dissolution of the marriage to which such order
relates, and
``(iii) the former spouse notifies a plan within the period
prescribed under subparagraph (C) that the former spouse is
entitled to benefits under the plan in accordance with the
provisions of this paragraph,
then such domestic relations order shall be treated as a
qualified domestic relations order for purposes of this
subsection and section 401(a)(13).
``(B) Amount of benefit.--
``(i) In general.--Any domestic relations order treated as
a qualified domestic relations order under subparagraph (A)
shall be treated as specifying that the former spouse is
entitled to the applicable percentage of the marital share of
the participant's accrued benefit.
``(ii) Marital share.--For purposes of clause (i), the
marital share of a participant's accrued benefit is an amount
equal to the product of--
``(I) such benefit as of the date of the first payment
under the plan (to the extent such accrued benefit is vested
at the date of the divorce or any later date), and
``(II) a fraction the numerator of which is the period of
participation by the participant under the plan starting with
the date of marriage and ending with the date of divorce, and
the denominator of which is the total period of participation
by the participant under the plan.
[[Page S7278]]
``(iii) Applicable percentage.--For purposes of this
subparagraph, the applicable percentage is--
``(I) except as provided in subclause (II), 50 percent, and
``(II) in the case of a participant who fails to provide
the plan with notice of a domestic relations order within the
time prescribed under subparagraph (C), 67 percent.
``(C) Notice requirements.--
``(i) Notice by employee.--Each employee who is a
participant in a pension plan shall, within 60 days after the
dissolution of the marriage of the employee--
``(I) notify the plan administrator of the plan of such
dissolution, and
``(II) provide to the plan administrator a copy of the
domestic relations order (including an annulment or other
order of marital dissolution) providing for such dissolution
and the last known address of the employee's former spouse.
``(ii) Notice by plan administrator.--Each plan
administrator receiving notice under clause (i) shall
promptly notify the former spouse of a participant of such
spouse's rights under this paragraph, including the time
period within which such spouse is required to notify the
plan of the spouse's intention to claim rights under this
paragraph.
``(iii) Notice by former spouse.--A former spouse may
notify the plan administrator of such spouse's intent to
claim rights under this paragraph at any time before the last
day of the 1-year period following receipt of notice under
clause (ii).
``(iv) Coordination with plan procedures.--The
determination under paragraph (6)(A)(ii) with respect to a
domestic relations order to which this paragraph applies
shall be made within a reasonable period of time after the
plan administrator receives the notice described in clause
(iii).
``(D) Interpretation as qualified domestic relations
order.--Each plan shall establish reasonable rules for
determining how any such deemed domestic relations order is
to be interpreted under the plan so as to constitute a
qualified domestic relations order that satisfies paragraphs
(2) through (4) (and a copy of such rules shall be provided
to such former spouse promptly after delivery of the divorce
decree). Such rules--
``(i) may delay the effect of such an order until the
earlier of the date the participant is fully vested or has
terminated employment,
``(ii) may allow the former spouse to be paid out
immediately,
``(iii) shall permit the former spouse to be paid not later
than the earliest retirement age under the plan or the
participant's death,
``(iv) may require the submitter of the divorce decree to
present a marriage certificate or other evidence of the
marriage date to assist in benefit calculations, and
``(v) may conform to the rules applicable to qualified
domestic relations orders regarding form or type of
benefit.''
(b) Amendments to the Employee Retirement Income Security
Act of 1974.--Section 206(d)(3) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1056(d)(3)) is amended
by redesignating subparagraph (N) as subparagraph (O) and by
inserting after subparagraph (M) the following new
subparagraph:
``(N) Special rules and procedures for domestic relations
orders not specifying division of pension benefits.--
``(i) In general.--If--
``(I) a domestic relations order (including an annulment or
other order of marital dissolution) relates to provision of
marital property with respect to a marriage of at least 5
years duration between the participant and the former spouse,
``(II)(aa) such order (and any prior order) does not
specifically provide that pension benefits were considered by
the parties and no division is intended, or
``(bb) such order is a qualified domestic relations order
without regard to this subparagraph or there is no other
prior qualified domestic relations order issued in connection
with the dissolution of the marriage to which such order
relates, and
``(III) the former spouse notifies a plan within the period
prescribed under clause (iii) that the former spouse is
entitled to benefits under the plan in accordance with the
provisions of this subparagraph,
then such domestic relations order shall be treated as a
qualified domestic relations order for purposes of this
paragraph.
``(ii) Amount of benefit.--
``(I) In general.--Any domestic relations order treated as
a qualified domestic relations order under clause (i) shall
be treated as specifying that the former spouse is entitled
to the applicable percentage of the marital share of the
participant's accrued benefit.
``(II) Marital share.--For purposes of subclause (I), the
marital share of a participant's accrued benefit is an amount
equal to the product of--
``(aa) such benefit as of the date of the first payment
under the plan (to the extent such accrued benefit is vested
at the date of the divorce or any later date), and
``(bb) the numerator of which is the period of
participation by the participant under the plan starting with
the date of marriage and ending with the date of divorce, and
the denominator of which is the total period of participation
by the participant under the plan.
``(III) Applicable percentage.--For purposes of this
clause, the applicable percentage is--
``(aa) except as provided in item (bb), 50 percent, and
``(bb) in the case of a participant who fails to provide
the plan with notice of a domestic relations order within the
time prescribed under clause (iii), 67 percent.
``(iii) Notice requirements.--
``(I) Notice by employee.--Each employee who is a
participant in a pension plan shall, within 60 days after the
dissolution of the marriage of the employee--
``(aa) notify the plan administrator of the plan of such
dissolution, and
``(bb) provide to the plan administrator a copy of the
domestic relations order (including an annulment or other
order of marital dissolution) providing for such dissolution
and the last known address of the employee's former spouse.
``(II) Notice by plan administrator.--Each plan
administrator receiving notice under subclause (I) shall
promptly notify the former spouse of a participant of such
spouse's rights under this subparagraph, including the time
period within which such spouse is required to notify the
plan of the spouse's intention to claim rights under this
subparagraph.
``(III) Notice by former spouse.--A former spouse may
notify the plan administrator of such spouse's intent to
claim rights under this subparagraph at any time before the
last day of the 1-year period following receipt of notice
under subclause (II).
``(IV) Coordination with plan procedures.--The
determination under subparagraph (G)(i)(II) with respect to a
domestic relations order to which this subparagraph applies
shall be made within a reasonable period of time after the
plan administrator receives the notice described in subclause
(III).
``(iv) Interpretation as qualified domestic relations
order.--Each plan shall establish reasonable rules for
determining how any such deemed domestic relations order is
to be interpreted under the plan so as to constitute a
qualified domestic relations order that satisfies
subparagraphs (C) through (E) (and a copy of such rules shall
be provided to such former spouse promptly after delivery of
the divorce decree). Such rules--
``(I) may delay the effect of such an order until the
earlier of the date the participant is fully vested or has
terminated employment,
``(II) may allow the former spouse to be paid out
immediately,
``(III) shall permit the former spouse to be paid not later
than the earliest retirement age under the plan or the
participant's death,
``(IV) may require the submitter of the divorce decree to
present a marriage certificate or other evidence of the
marriage date to assist in benefit calculations, and
``(V) may conform to the rules applicable to qualified
domestic relations orders regarding form or type of
benefit.''
SEC. 407. ENTITLEMENT OF DIVORCED SPOUSES TO RAILROAD
RETIREMENT ANNUITIES INDEPENDENT OF ACTUAL
ENTITLEMENT OF EMPLOYEE.
Section 2 of the Railroad Retirement Act of 1974 (45 U.S.C.
231a) is amended--
(1) in subsection (c)(4)(i), by striking ``(A) is entitled
to an annuity under subsection (a)(1) and (B)''; and
(2) in subsection (e)(5), by striking ``or divorced wife''
the second place it appears.
SEC. 408. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), the
amendments made by this subtitle, other than sections 403 and
405, shall apply with respect to plan years beginning on or
after January 1, 1999, and the amendments made by section 406
shall apply only with respect to divorces becoming final in
such plan years.
(b) Special Rule for Collectively Bargained Plans.--In the
case of a plan maintained pursuant to 1 or more collective
bargaining agreements between employee representatives and 1
or more employers ratified on or before the date of the
enactment of this Act, subsection (a) shall be applied to
benefits pursuant to, and individuals covered by, any such
agreement by substituting for ``January 1, 1999'' the date of
the commencement of the first plan year beginning on or after
the earlier of--
(1) the later of--
(A) January 1, 2000, or
(B) the date on which the last of such collective
bargaining agreements terminates (determined without regard
to any extension thereof after the date of the enactment of
this Act), or
(2) January 1, 2001.
Subtitle B--Protection of Rights of Former Spouses to Pension Benefits
Under Certain Government and Government-Sponsored Retirement Programs
SEC. 411. EXTENSION OF TIER II RAILROAD RETIREMENT BENEFITS
TO SURVIVING FORMER SPOUSES PURSUANT TO DIVORCE
AGREEMENTS.
(a) In General.--Section 5 of the Railroad Retirement Act
of 1974 (45 U.S.C. 231d) is amended by adding at the end the
following new subsection:
``(d) Notwithstanding any other provision of law, the
payment of any portion of an annuity computed under section
3(b) to a surviving former spouse in accordance with a court
decree of divorce, annulment, or legal separation or the
terms of any court-approved property settlement incident to
any such court decree shall not be terminated
[[Page S7279]]
upon the death of the individual who performed the service
with respect to which such annuity is so computed unless such
termination is otherwise required by the terms of such court
decree.''
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 412. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS, AND FORMER
SPOUSES OF FEDERAL EMPLOYEES WHO DIE BEFORE
ATTAINING AGE FOR DEFERRED ANNUITY UNDER CIVIL
SERVICE RETIREMENT SYSTEM.
(a) Benefits for Widow or Widower.--Section 8341(f) of
title 5, United States Code, is amended--
(1) in the matter preceding paragraph (1) by--
(A) by inserting ``a former employee separated from the
service with title to deferred annuity from the Fund dies
before having established a valid claim for annuity and is
survived by a spouse, or if'' before ``a Member''; and
(B) by inserting ``of such former employee or Member''
after ``the surviving spouse'';
(2) in paragraph (1)--
(A) by inserting ``former employee or'' before ``Member
commencing''; and
(B) by inserting ``former employee or'' before ``Member
dies''; and
(3) in the undesignated sentence following paragraph (2)--
(A) in the matter preceding subparagraph (A) by inserting
``former employee or'' before ``Member''; and
(B) in subparagraph (B) by inserting ``former employee or''
before ``Member''.
(b) Benefits for Former Spouse.--Section 8341(h) of title
5, United States Code, is amended--
(1) in paragraph (1) by adding after the first sentence
``Subject to paragraphs (2) through (5) of this subsection, a
former spouse of a former employee who dies after having
separated from the service with title to a deferred annuity
under section 8338(a) but before having established a valid
claim for annuity is entitled to a survivor annuity under
this subsection, if and to the extent expressly provided for
in an election under section 8339(j)(3) of this title, or in
the terms of any decree of divorce or annulment or any court
order or court-approved property settlement agreement
incident to such decree.''; and
(2) in paragraph (2)--
(A) in subparagraph (A)(ii) by striking ``or annuitant,''
and inserting ``annuitant, or former employee''; and
(B) in subparagraph (B)(iii) by inserting ``former employee
or'' before ``Member''.
(c) Protection of Survivor Benefit Rights.--Section
8339(j)(3) of title 5, United States Code, is amended by
inserting at the end the following: ``The Office shall
provide by regulation for the application of this subsection
to the widow, widower, or surviving former spouse of a former
employee who dies after having separated from the service
with title to a deferred annuity under section 8338(a) but
before having established a valid claim for annuity.''
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act
and shall apply only in the case of a former employee who
dies on or after such date.
SEC. 413. PAYMENT OF LUMP-SUM BENEFITS TO FORMER SPOUSES OF
FEDERAL EMPLOYEES.
(a) Civil Service Retirement System.--Chapter 83 of title
5, United States Code, is amended--
(1) in section 8342(c), by striking ``Lump-sum'' and
inserting ``Except as provided in section 8345(j), lump-
sum'';
(2) in section 8345(j) by adding at the end of paragraph
(1) the following: ``Except for purposes of subparagraph (B),
the first sentence of this paragraph shall be deemed to be
amended by inserting after `that individual' the following:
`, and any lump-sum benefits authorized by section 8342(d)
through (f) which would otherwise be paid to any person or
persons under section 8342(c),' ''; and
(B) by adding at the end the following:
``(4) Any payment under this subsection to a person bars
recovery by any other person.''
(b) Federal Employees' Retirement System.--Chapter 84 of
title 5, United States Code, is amended--
(1) in section 8424(d), by striking ``Lump-sum'' and
inserting ``Except as provided in section 8467(a), lump-
sum''; and
(2) in section 8467--
(A) in subsection (a), by adding at the end the following:
``Except for purposes of paragraph (2), the first sentence of
this subsection shall be deemed to be amended by inserting
after `that individual' the following: `, and any lump-sum
benefits authorized by section 8424(e) through (g) which
would otherwise be paid to any individual or individuals
under section 8424(d),' ''; and
(B) by adding at the end the following:
``(d) Any payment under this section to a person bars
recovery by any other person.''
(c) Effective Date.--The amendments made by this section
shall apply with respect to any amount payable by reason of
any death occurring on or after the date of the enactment of
this Act.
Subtitle C--Modifications of Joint and Survivor Annuity Requirements
SEC. 421. MODIFICATIONS OF JOINT AND SURVIVOR ANNUITY
REQUIREMENTS.
(a) Amendments to ERISA.--
(1) Amount of annuity.--
(A) In general.--Paragraph (1) of section 205(a) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1055(a)) is amended by inserting ``or, at the election of the
participant, shall be provided in the form of a qualified
joint and \2/3\ survivor annuity'' after ``survivor
annuity,''.
(B) Definition.--Subsection (d) of section 205 of such Act
(29 U.S.C. 1055) is amended--
(i) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively,
(ii) by inserting ``(1)'' after ``(d)'', and
(iii) by adding at the end the following new paragraph:
``(2) For purposes of this section, the term ``qualified
joint and \2/3\ survivor annuity'' means a joint and survivor
annuity under which the survivor annuity for the life of the
surviving spouse is equal to at least \2/3\ of the amount of
the annuity which is payable during the joint lives of the
participant and spouse.''
(2) Illustration requirement.--Clause (i) of section
205(c)(3)(A) of such Act (29 U.S.C. 1055(c)(3)(A)) is amended
to read as follows:
``(i) the terms and conditions of each qualified joint and
survivor annuity and qualified joint and \2/3\ survivor
annuity offered, accompanied by an illustration of the
benefits under each such annuity for the particular
participant and spouse and an acknowledgement form to be
signed by the participant and the spouse that they have read
and considered the illustration before any form of retirement
benefit is chosen,''.
(b) Amendments to Internal Revenue Code.--
(1) Amount of annuity.--
(A) In general.--Clause (i) of section 401(a)(11)(A) of the
Internal Revenue Code of 1986 (relating to requirement of
joint and survivor annuity and preretirement survivor
annuity) is amended by inserting ``or, at the election of the
participant, shall be provided in the form of a qualified
joint and \2/3\ survivor annuity'' after ``survivor
annuity,''.
(B) Definition.--Section 417 of such Code (relating to
definitions and special rules for purposes of minimum
survivor annuity requirements), as amended by section 422, is
amended by redesignating subsection (f) as subsection (g) and
by inserting after subsection (e) the following new
subsection:
``(f) Definition of Qualified Joint and \2/3\ Survivor
Annuity.--For purposes of this section and section
401(a)(11), the term ``qualified joint and \2/3\ survivor
annuity'' means a joint and survivor annuity under which the
survivor annuity for the life of the surviving spouse is
equal to at least \2/3\ of the amount of the annuity which is
payable during the joint lives of the participant and
spouse.''
(2) Illustration requirement.--Clause (i) of section
417(a)(3)(A) of such Code (relating to explanation of joint
and survivor annuity) is amended to read as follows:
``(i) the terms and conditions of each qualified joint and
survivor annuity and qualified joint and \2/3\ survivor
annuity offered, accompanied by an illustration of the
benefits under each such annuity for the particular
participant and spouse and an acknowledgement form to be
signed by the participant and the spouse that they have read
and considered the illustration before any form of retirement
benefit is chosen,''.
(c) Effective Date.--The amendments made by this section
shall apply to plan years beginning on or after January 1,
1999.
SEC. 422. SPOUSAL CONSENT REQUIRED FOR DISTRIBUTIONS FROM
DEFINED CONTRIBUTION PLANS.
(a) Amendments to Internal Revenue Code of 1986.--
(1) In general.--Section 401(a)(11) of the Internal Revenue
Code of 1986 (relating to requirement of joint and survivor
annuity and preretirement survivor annuity) is amended by
striking subparagraphs (B), (C), and (D), by redesignating
subparagraphs (E) and (F) as subparagraphs (C) and (D),
respectively, and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Plans to which paragraph applies.--This paragraph
shall apply to any defined benefit plan and to any defined
contribution plan.''
(2) Exception for hardship distributions.--Section 417(f)
of such Code is amended by adding at the end the following
new paragraph:
``(8) Hardship distributions.--The requirements of section
401(a)(11) and this section shall not apply to a hardship
distribution under section 401(k)(2)(B)(i)(IV).''
(3) Special rule for cash-outs.--Section 417(e) of such
Code is amended by adding at the end the following new
paragraph:
``(4) Special rule for defined contribution plans.--
``(A) In general.--In the case of a defined contribution
plan, notwithstanding paragraph (2), if the present value of
the qualified joint and survivor annuity does not exceed
$10,000, the plan may immediately distribute 50 percent of
the present value of such annuity to each spouse.
``(B) Exception.--The plan may distribute a different
percentage of the present value of an annuity to each spouse
if a court order or contractual agreement provides for such
different percentage.''
(b) Amendments to ERISA.--
(1) In general.--Section 205(b) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1055(b)) is amended to
read as follows:
``(b)(1) This section shall apply to any defined benefit
plan and to any individual account plan.
``(2) This section shall not apply to a plan which the
Secretary of the Treasury or his delegate has determined is a
plan described
[[Page S7280]]
in section 404(c) of the Internal Revenue Code of 1986 (or a
continuation thereof) in which participation is substantially
limited to individuals who, before January 1, 1976, ceased
employment covered by the plan.''
(2) Hardship distribution.--Section 205 of such Act (29
U.S.C. 1055) is amended by adding at the end the following
new subsection:
``(m) This section shall not apply to a hardship
distribution under section 401(k)(2)(B)(i)(IV) of the
Internal Revenue Code of 1986.''
(3) Special rule for cash-outs.--Section 205(g) of such Act
(29 U.S.C. 1055(g)) is amended by adding at the end the
following new paragraph:
``(4) Special rule for defined contribution plans.--
``(A) In general.--In the case of an individual account
plan, notwithstanding paragraph (2), if the present value of
the qualified joint and survivor annuity or the qualified
preretirement survivor annuity exceeds $10,000, the plan may
immediately distribute 50 percent of the present value of
such annuity to each spouse.
``(B) Exception.--The plan may distribute a different
percentage of the present value of an annuity to each spouse
if a court order or contractual agreement provides for such
different percentage.''
(c) Effective Date.--The amendments made by this section
shall apply to plan years beginning after December 31, 1999.
TITLE V--DATE FOR ADOPTION OF PLAN AMENDMENTS
SEC. 501. DATE FOR ADOPTION OF PLAN AMENDMENTS.
(a) In General.--Except as otherwise provided in this Act,
if any amendment made by this Act requires an amendment to
any plan, such plan amendment shall not be required to be
made before the last day of the first plan year beginning on
or after January 1, 1999, if--
(1) during the period after such amendment takes effect and
before the last day of such first plan year, the plan is
operated in accordance with the requirements of such
amendment, and
(2) such plan amendment applies retroactively to such
period.
A plan shall not be treated as failing to provide definitely
determinable benefits or contributions, or to be operated in
accordance with the provisions of the plan, merely because it
operates in accordance with this subsection.
(b) Governmental Plans.--In the case of a governmental plan
(as defined in section 414(d) of the Internal Revenue Code of
1986), subsection (a) shall be applied by substituting for
``January 1, 1999'' the later of--
(1) January 1, 2000, or
(2) the date which is 90 days after the opening of the
first legislative session beginning after January 1, 1999, of
the governing body with authority to amend the plan, but only
if such governing body does not meet continuously.
(c) Special Rule for Collectively Bargained Plans.--
Notwithstanding any other provision of this Act, in the case
of a plan maintained pursuant to 1 or more collective
bargaining agreements between employee representatives and 1
or more employers ratified on or before the date of the
enactment of this Act, any amendment made by this Act which
requires an amendment to such plan shall not be required to
be made before the last day of the first plan year beginning
on or after the earlier of--
(1) the later of--
(A) January 1, 1999, or
(B) the date on which the last of such collective
bargaining agreements terminates (determined without regard
to any extension thereof after the date of the enactment of
this Act), or
(2) January 1, 2000.
______
By Mr. COVERDELL:
S. 2250. A bill to protect the rights of the States and the people
from abuse by the Federal Government, to strengthen the partnership and
the intergovernmental relationship between State and Federal
Governments, to restrain Federal agencies from exceeding their
authority, to enforce the Tenth Amendment of the United States
Constitution, and for other purposes; to the Committee on the
Judiciary.
tenth amendment enforcement act
Mr. COVERDELL. Mr. President, I rise today to introduce the Tenth
Amendment Enforcement Act of 1998. The Tenth Amendment was a promise to
the States and to the American people that the Federal Government would
be limited, and that the people of the States could, for the most part,
govern themselves as they saw fit. Unfortunately, in the last half
century, that promise has been broken. The American people have asked
us to start honoring that promise again: To return power to State and
local governments which are close to and more sensitive to the needs of
the people.
We took an important first step in the 104th Congress by enacting the
Unfunded Mandates Reform Act. It began the shift of power out of
Washington and back to the States and to the American people. Today we
continue that process. The Tenth Amendment Enforcement Act of 1998 will
return power to the States and to the people by placing safeguards in
the legislative process, by restricting the power of Federal agencies
and by instructing the Federal courts to enforce the Tenth Amendment.
The Tenth Amendment Enforcement Act of 1998 enforces the Tenth
amendment in five ways. First, it includes a specific congressional
finding that the Federal Government has no powers not delegated by the
Constitution, and the States may exercise all powers not withheld by
the Constitution. In other words, the Tenth Amendment means what it
says.
Second, this proposal states that Federal laws may not interfere with
State or local powers unless Congress declares its intent to preempt
and specifically cites its constitutional authority to act.
Third, it enforces this declaration by establishing a point of order
that allows any Congressman or Senator to challenge a bill lacking such
a declaration or insufficiently citing constitutional authority. Such a
point of order would require a three-fifths majority to be defeated.
Fourth, it requires that Federal agency rules and regulations not
interfere with State or local powers without constitutional authority
cited by Congress. Agencies must allow States notice and an opportunity
to be heard in the rulemaking process.
Fifth, the proposal directs the courts to strictly construe Federal
laws and regulations interfering with State powers. It requires a
presumption in favor of State authority and against Federal preemption.
Too often in Washington, there is the temptation to weakening our
Federal system of government. It has been stated that just as the
separation and independence of the coordinate branches of the Federal
Government serves to prevent the accumulation of excessive power in any
one branch, a healthy balance of power between the States and the
Federal Government will reduce the risk of tyranny and abuse from
either front. We have an obligation to take steps to prevent such
things from happening and to preserve the freedom and liberties we
enjoy. I believe the Tenth Amendment Enforcement Act of 1998 is an
important step and urge my colleagues to join me in this effort.
______
By Mr. CAMPBELL:
S. 2253. A bill to establish a matching grant program to help State
and local jurisdictions purchase bullet resistant equipment for use by
law enforcement departments; to the Committee on the Judiciary.
Officer Dale Claxton Bullet Resistant Police Protective Equipment
Mr. CAMPBELL. Mr. President, today I introduce legislation to help
our nation's state and local law enforcement officers acquire the
bullet resistant equipment they need to protect themselves from would-
be killers. This bill, the Officer Dale Claxton Bullet Resistant Police
Protective Equipment Act of 1998, is named after a Cortez, Colorado,
police officer who was fatally shot through the windshield of his
patrol car on May 29, 1998, after stopping a stolen truck. Officer
Claxton was tragically and prematurely taken away from his wife and
four children. Today, two of the three suspects are still at large,
even after an extensive manhunt.
Unfortunately, this type of incident is far from isolated. All across
our nation law enforcement officers, whether parked on the side of the
road or in hot pursuit, are at risk of being shot through their
windshields. Another example that many of my colleagues may be aware of
is the brutal murder of the District of Columbia's Officer Brian
Gibson, who was ambushed and shot while sitting in his patrol car. We
must do what we can to prevent tragedies like this.
As a former deputy sheriff, I am personally aware of the dangers
which law enforcement officers face on the front lines every day. One
way in which the federal government can improve their safety is to help
them acquire bullet resistant glass and other equipment for patrol
cars. These partnership grants are especially crucial for officers who
serve in small local jurisdictions that often lack the funds to provide
their officers with all of the life saving equipment they may need.
[[Page S7281]]
The Officer Dale Claxton bill builds on the impact of the Bulletproof
Vest Partnership Grant Act, S. 1605, which I introduced and the
President signed into law on June 16, 1998. This new program provides
grants to law enforcement agencies to purchase body armor for their
officers. The Officer Dale Claxton bill extends this protection to
include bullet resistant equipment for the officers' vehicles, shields,
and any other equipment that officers may need when they are serving
out on the front lines of law enforcement.
The bill I introduce today has two major components. The first is to
provide a matching grant program for state, county, local and tribal
law enforcement agencies. This legislation would authorize the
Department of Justice's Bureau of Justice Assistance to administer a
$40 million matching grant program to assist these agencies purchase
bullet resistant equipment for patrol cars, including bullet resistant
glass, panels, and other safety devices.
The program will provide 50-50 matching grants to state and local law
enforcement agencies and Indian tribes to assist in purchasing
bulletproof vests and body armor. To ensure that the funding goes first
to those police departments which need it most, the Director of the
Bureau of Justice Assistance is given discretion to give preferential
consideration to smaller departments whose budgets are scarce.
Additionally, those jurisdictions which do not receive any funding
under the local law enforcement block grant program will be given
preference. Furthermore, at least half of the funds available under
this program will be awarded to jurisdictions with less than 100,000
residents.
The second component of this legislation would launch an expedited
and targeted research and development effort to come up with new
technologies and products. Promising new light-weight bullet proof
materials now being developed could be as revolutionary in the year
2000 as the development of Kevlar was in the 1970s for the manufacture
of body armor. These exciting new technologies promise to be lighter,
more versatile and hopefully less expensive than traditional heavy
bulletproof glass.
The Officer Dale Claxton bill authorizes $3 million over 3 years for
the Justice Department's National Institute of Justice (NIJ) to conduct
research and development of a new bullet resistant technologies, such
as bonded acrylic, polymers, polycarbons, aluminized material, and
transparent ceramics. This R and D program would focus on specialized
equipment, including windshield glass, car panels, police shields and
other types of protective gear.
The Officer Dale Claxton bill directs the National Institute of
Justice to inventory existing technologies in the private sector, in
surplus military property, and in use by other countries. The bill also
directs the Institute to conduct: standards development; technology
development; technical testing; operational testing; evaluation; and
technology transfer.
Under the bill, the Institute would give priority in testing and
engineering surveys to law enforcement partnerships developed in
coordination with existing High Intensity Drug Trafficking Areas
(HIDTAs).
Our nation's police officers, sheriffs and deputies regularly put
their lives in harm's way as they protect the people and preserve the
peace. They deserve to have access to the bullet resistant equipment
they need. The Officer Dale Claxton bill will both accelerate the
development of new lifesaving bullet resistant technologies and then
help get them deployed into the field where they are needed. Lives will
be saved.
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. 2253
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 ``Officer Dale Claxton Bullet
Resistant Police Protective Equipment Act of 1998''.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress finds that--
(1) Officer Dale Claxton of the Cortez, Colorado, Police
Department was shot and killed by bullets that passed through
the windshield of his police car after he stopped a stolen
truck, and his life may have been saved if his police car had
been equipped with bullet resistant equipment;
(2) the number of law enforcement officers who are killed
in the line of duty would significantly decrease if every law
enforcement officer in the United States had access to
additional bullet resistant equipment;
(3) according to studies, between 1985 and 1994, 709 law
enforcement officers in the United States were feloniously
killed in the line of duty;
(4) the Federal Bureau of Investigation estimates that the
risk of fatality to law enforcement officers while not
wearing bullet resistant equipment, such as an armor vest, is
14 times higher than for officers wearing an armor vest;
(5) according to studies, between 1985 and 1994, bullet-
resistant materials helped save the lives of more than 2,000
law enforcement officers in the United States; and
(6) the Executive Committee for Indian Country Law
Enforcement Improvements reports that violent crime in Indian
country has risen sharply, despite a decrease in the national
crime rate, and has concluded that there is a ``public safety
crisis in Indian country''.
(b) Purpose.--The purpose of this Act is to save lives of
law enforcement officers by helping State, local, and tribal
law enforcement agencies provide officers with bullet
resistant equipment.
SEC. 3. MATCHING GRANT PROGRAM FOR LAW ENFORCEMENT BULLET
RESISTANT EQUIPMENT.
(a) In General.--Part Y of title I of the Omnibus Crime
Control and Safe Streets Act of 1968 is amended--
(1) by striking the part designation and part heading and
inserting the following:
``PART Y--MATCHING GRANT PROGRAMS FOR LAW ENFORCEMENT
``Subpart A--Grant Program For Armor Vests'';
(2) by striking ``this part'' each place that term appears
and inserting ``this subpart''; and
(3) by adding at the end the following:
``Subpart B--Grant Program For Bullet Resistant Equipment
``SEC. 2511. PROGRAM AUTHORIZED.
``(a) In General.--The Director of the Bureau of Justice
Assistance is authorized to make grants to States, units of
local government, and Indian tribes to purchase bullet
resistant equipment for use by State, local, and tribal law
enforcement officers.
``(b) Uses of Funds.--Grants awarded under this section
shall be--
``(1) distributed directly to the State, unit of local
government, or Indian tribe; and
``(2) used for the purchase of bullet resistant equipment
for law enforcement officers in the jurisdiction of the
grantee.
``(c) Preferential Consideration.--In awarding grants under
this subpart, the Director of the Bureau of Justice
Assistance may give preferential consideration, if feasible,
to an application from a jurisdiction that--
``(1) has the greatest need for bullet resistant equipment
based on the percentage of law enforcement officers in the
department who do not have access to a vest;
``(2) has a violent crime rate at or above the national
average as determined by the Federal Bureau of Investigation;
or
``(3) has not received a block grant under the Local Law
Enforcement Block Grant program described under the heading
`Violent Crime Reduction Programs, State and Local Law
Enforcement Assistance' of the Departments of Commerce,
Justice, and State, the Judiciary, and Related Agencies
Appropriations Act, 1998 (Public Law 105-119).
``(d) Minimum Amount.--Unless all eligible applications
submitted by any State or unit of local government within
such State for a grant under this section have been funded,
such State, together with grantees within the State (other
than Indian tribes), shall be allocated in each fiscal year
under this section not less than 0.50 percent of the total
amount appropriated in the fiscal year for grants pursuant to
this section, except that the United States Virgin Islands,
American Samoa, Guam, and the Northern Mariana Islands shall
each be allocated .25 percent.
``(e) Maximum Amount.--A qualifying State, unit of local
government, or Indian tribe may not receive more than 5
percent of the total amount appropriated in each fiscal year
for grants under this section, except that a State, together
with the grantees within the State may not receive more than
20 percent of the total amount appropriated in each fiscal
year for grants under this section.
``(f) Matching Funds.--The portion of the costs of a
program provided by a grant under subsection (a) may not
exceed 50 percent. Any funds appropriated by Congress for the
activities of any agency of an Indian tribal government or
the Bureau of Indian Affairs performing law enforcement
functions on any Indian lands may be used to provide the non-
Federal share of a matching requirement funded under this
subsection.
``(g) Allocation of Funds.--At least half of the funds
available under this subpart shall be awarded to units of
local government with fewer than 100,000 residents.
``SEC. 2512. APPLICATIONS.
``(a) In General.--To request a grant under this subpart,
the chief executive of a
[[Page S7282]]
State, unit of local government, or Indian tribe shall submit
an application to the Director of the Bureau of Justice
Assistance in such form and containing such information as
the Director may reasonably require.
``(b) Regulations.--Not later than 90 days after the date
of the enactment of this subpart, the Director of the Bureau
of Justice Assistance shall promulgate regulations to
implement this section (including the information that must
be included and the requirements that the States, units of
local government, and Indian tribes must meet) in submitting
the applications required under this section.
``(c) Eligibility.--A unit of local government that
receives funding under the Local Law Enforcement Block Grant
program (described under the heading `Violent Crime Reduction
Programs, State and Local Law Enforcement Assistance' of the
Departments of Commerce, Justice, and State, the Judiciary,
and Related Agencies Appropriations Act, 1998 (Public Law
105-119)) during a fiscal year in which it submits an
application under this subpart shall not be eligible for a
grant under this subpart unless the chief executive officer
of such unit of local government certifies and provides an
explanation to the Director that the unit of local government
considered or will consider using funding received under the
block grant program for any or all of the costs relating to
the purchase of bullet resistant equipment, but did not, or
does not expect to use such funds for such purpose.
``SEC. 2513. DEFINITIONS.
``For purposes of this subpart--
``(1) the term `equipment' means windshield glass, car
panels, shields, and protective gear;
``(2) the term `State' means each of the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, American Samoa, Guam, and the
Northern Mariana Islands;
``(3) the term `unit of local government' means a county,
municipality, town, township, village, parish, borough, or
other unit of general government below the State level;
``(4) the term `Indian tribe' has the same meaning as in
section 4(e) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b(e)); and
``(5) the term `law enforcement officer' means any officer,
agent, or employee of a State, unit of local government, or
Indian tribe authorized by law or by a government agency to
engage in or supervise the prevention, detection, or
investigation of any violation of criminal law, or authorized
by law to supervise sentenced criminal offenders.''.
(b) Authorization of Appropriations.--Section 1001(a) of
the Omnibus Crime Control and Safe Streets Act of 1968 (42
U.S.C. 3793(a)) is amended by striking paragraph (23) and
inserting the following:
``(23) There are authorized to be appropriated to carry out
part Y--
``(A) $25,000,000 for each of fiscal years 1999 through
2001 for grants under subpart A of that part; and
``(B) $40,000,000 for each of fiscal years 1999 through
2001 for grants under subpart B of that part.''.
SEC. 4. SENSE OF THE CONGRESS.
In the case of any equipment or products that may be
authorized to be purchased with financial assistance provided
using funds appropriated or otherwise made available by this
Act, it is the sense of the Congress that entities receiving
the assistance should, in expending the assistance, purchase
only American-made equipment and products.
SEC. 5. TECHNOLOGY DEVELOPMENT.
Section 202 of title I of the Omnibus Crime Control and
Safe Streets Act of 1968 (42 U.S.C. 3722) is amended by
adding at the end the following:
``(e) Bullet Resistant Technology Development.--
``(1) In General.--The Institute is authorized to--
``(A) conduct research and otherwise work to develop new
bullet resistant technologies (i.e. acrylic, polymers,
aluminized material, and transparent ceramics) for use in
police equipment (including windshield glass, car panels,
shields, and protective gear);
``(B) inventory bullet resistant technologies used in the
private sector, in surplus military property, and by foreign
countries;
``(C) promulgate relevant standards for, and conduct
technical and operational testing and evaluation of, bullet
resistant technology and equipment, and otherwise facilitate
the use of that technology in police equipment.
``(2) Priority.--In carrying out this subsection, the
Institute shall give priority in testing and engineering
surveys to law enforcement partnerships developed in
coordination with High Intensity Drug Trafficking Areas.
``(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $3,000,000
for fiscal years 1999 through 2001.''.
______
By Mr. REED.
S. 2254. A bill to provide for the establishment of an assistance
program for health insurance consumers; to the Committee on Labor and
Human Resources.
THE HEALTH CARE CONSUMER ASSISTANCE ACT
Mr. REED. Mr. President, today I introduce the Health Care
Consumer Assistance Act. This legislation creates a consumer assistance
program that is key to patient protections in the health insurance
market.
President Clinton's Health Quality Commission stated in its recently
released Bill of Rights that consumers have the right to receive
accurate, easily understood information and get assistance in making
informed decisions about health plans and providers. Today, only a
loose patchwork of consumer assistance services exists. And, while a
number of sources provide assistance, most programs are limited. Many
consumer groups have advocated for the establishment of consumer
assistance programs to support consumers' growing need of information.
The legislation I am introducing today gives states grants to
establish nonprofit, private consumer assistance program designed to
help consumers understand and act on their health care choices, rights
and responsibilities. Under my bill, the Secretary of Health and Human
Services will make available funds for states to select an independent,
nonprofit agency to provide the following services to consumers:
provide information to consumers relating to their choices, rights and
responsibilities within the plans they select; operate 1-800 telephone
hotlines to respond to consumer information, advice and assistance
requests; produce and disseminate educational materials about patients'
rights; provide assistance and representation to people who wish to
appeal the denial, termination, or reduction of health care services,
or a refusal to pay for health services; and collect and disseminate
data about inquiries, problems and grievances handled by the consumer
assistance program.
This program has been championed by Ron Pollack of Families USA, a
member of the President's Commission on Quality, as well as numerous
other consumer advocates.
Mr. President, I have joined with many of my Democratic colleagues in
sponsoring S.1890, the Patients' Bill of Rights Act of 1998. I am
pleased that S.1890 would establish a consumer assistance program,
similar to that established by my legislation. My purpose today is to
emphasize the importance of such a consumer protection program. This
legislation is not without controversy, but I believe that American
consumers deserve protection and assistance as they attempt to navigate
the often confusing and complex world of health insurance.
Mr. President, I ask unanimous consent to have the bill printed in
the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 2254
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Health Care Consumer
Assistance Act''.
SEC. 2. GRANTS.
(a) In General.--The Secretary of Health and Human Services
(referred to in this Act as the ``Secretary'') shall award
grants to States to enable such States to enter into
contracts for the establishment of consumer assistance
programs designed to assist consumers of health insurance in
understanding their rights, responsibilities and choices
among health insurance products.
(b) Eligibility.--To be eligible to receive a grant under
this section a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require,
including a State plan that describes--
(1) the manner in which the State will solicit proposals
for, and enter into a contract with, an entity eligible under
section 3 to serve as the health insurance consumer office
for the State; and
(2) the manner in which the State will ensure that advice
and assistance services for health insurance consumers are
coordinated through the office described in paragraph (1).
(c) Amount of Grant.--
(1) In general.--From amounts appropriated under section 5
for a fiscal year, the Secretary shall award a grant to a
State in an amount that bears the same ratio to such amounts
as the number of individuals within the State covered under a
health insurance plan (as determined by the Secretary) bears
to the total number of individuals covered under a health
insurance plan in all States (as determined by the
Secretary). Any amounts provided to a State under this
section that are not used by the State shall be remitted to
the Secretary and reallocated in accordance with this
paragraph.
(2) Minimum amount.--In no case shall the amount provided
to a State under a grant under this section for a fiscal year
be less
[[Page S7283]]
than an amount equal to .5 percent of the amount appropriated
for such fiscal year under section 5.
SEC. 3. ELIGIBILITY OF STATE ENTITIES.
To be eligible to enter into a contract with a State and
operate as the health insurance consumer office for the State
under this Act, an entity shall--
(1) be an independent, nonprofit entity with demonstrated
experience in serving the needs of health care consumers
(particularly low income and other consumers who are most in
need of consumer assistance);
(2) prepare and submit to the State a proposal containing
such information as the State may require;
(3) demonstrate that the entity has the technical,
organizational, and professional capacity to operate the
health insurance consumer office within the State;
(4) provide assurances that the entity has no real or
perceived conflict of interest in providing advice and
assistance to consumers regarding health insurance and that
the entity is independent of health insurance plans,
companies, providers, payers, and regulators of care; and
(5) demonstrate that, using assistance provided by the
State, the entity has the capacity to provide assistance and
advice throughout the State to public and private health
insurance consumers regardless of the source of coverage.
SEC. 4. USE OF FUNDS.
(a) By State.--A State shall use amounts received under a
grant under this Act to enter into a contract described in
section 2(a) to provide funds for the establishment and
operation of a health insurance consumer office.
(b) By Entity.--
(1) In general.--An entity that enters into a contract with
a State under this Act shall use amounts received under the
contract to establish and operate a health insurance consumer
office.
(2) Noncompliance.--If the State fails to enter into a
contract under subsection (a), the Secretary shall withhold
amounts to be provided to the State under this Act and use
such amounts to enter into the contract described in
paragraph (1) for the State.
(c) Activities of Office.--A health insurance consumer
office established under this Act shall--
(1) provide information to health insurance consumers
within the State relating to choice of health insurance
products and the rights and responsibilities of consumers and
insurers under such products;
(2) operate toll-free telephone hotlines to respond to
requests for information, advice or assistance concerning
health insurance in a timely and efficient manner;
(3) produce and disseminate educational materials
concerning health insurance consumer and patient rights;
(4) provide assistance and representation (in nonlitigative
settings) to individuals who desire to appeal the denial,
termination, or reduction of health care services, or the
refusal to pay for such services, under a health insurance
plan;
(5) make referrals to appropriate private and public
individuals or entities so that inquiries, problems, and
grievances with respect to health insurance can be handled
promptly and efficiently; and
(6) collect data concerning inquiries, problems, and
grievances handled by the office and disseminate a
compilation of such information to employers, health plans,
health insurers, regulatory agencies, and the general public.
(d) Availability of Services.--The office shall not
discriminate in the provision of services regardless of the
source of the individual's health insurance coverage or
prospective coverage, including individuals covered under
employer-provided insurance, self-funded plans, the medicare
or medicaid programs under title XVIII or XIX of the Social
Security Act (42 U.S.C. 1395 and 1396 et seq.), or under any
other Federal or State health care program.
(e) Subcontracts.--An office established under this section
may carry out activities and provide services through
contracts entered into with 1 or more nonprofit entities so
long as the office can demonstrate that all of the
requirements of this Act are met by the office.
(f) Training.--
(1) In general.--An office established under this section
shall ensure that personnel employed by the office possess
the skills, expertise, and information necessary to provide
the services described in subsection (c).
(2) Contracts.--To meet the requirement of paragraph (1),
an office may enter into contracts with 1 or more nonprofit
entities for the training (both through technical and
educational assistance) of personnel and volunteers. To be
eligible to receive a contract under this paragraph, an
entity shall be independent of health insurance plans,
companies, providers, payers, and regulators of care.
(3) Limitation.--Not to exceed 7 percent of the amount
awarded to an entity under a contract under subsection (a)
for a fiscal year may be used for the provision of training
under this section.
(g) Administrative Costs.--Not to exceed 1 percent of the
amount of a block grant awarded to the State under subsection
(a) for a fiscal year may be used for administrative expenses
by the State.
(h) Term.--A contract entered into under subsection (a)
shall be for a term of 3 years.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary to carry out this Act.
______
By Mr. FEINGOLD:
S. 2255. A bill to amend the Agricultural Market Transition Act to
prohibit the Secretary of Agriculture from including any storage
charges in the calculation of loan deficiency payments or loans made to
producers for loan commodities; to the Committee on Agriculture,
Nutrition, and forestry.
agricultural market transition act amendments
Mr. FEINGOLD. Mr. President, today I introduce legislation that will
give some relief to the taxpayers of this country, who now pay millions
every year to cover the storage costs of cotton farmers. This year
alone, this program has provided more than $23 million to store the
cotton crop of participating farmers. This measure puts all commodities
on a more equal footing by eliminating the storage subsidy for cotton,
the only commodity that still enjoys that privilege.
Mr. President, prior to the passage of the 1996 Freedom to Farm bill,
farmers producing wheat and feed grains relied heavily on the Farmer
Owned Reserve Program to assist them in repaying their overdue loans
when times were tough. They would roll their non-recourse loans into
the Farmer Owned Reserve Program which would allow them the opportunity
to pay back their loan, without interest, and also get assistance in
paying storage costs. Although cotton producers were not eligible to
participate in that particular program, they were offered the same
opportunities and others through the heavily subsidized cotton program.
Those were the days of heavy agriculture subsidization, when the
government dictated prices, provided price supports, and more often
than not, had over-surpluses of wheat, corn and other feed grains--
driving down domestic prices. The 1996 Farm Bill, sought to bring farm
policy up to date with prevailing modern agricultural thought--that the
agriculture industry must be more market oriented--must survive with
minimal government price interference.
Mr. President, although the Farm Bill was successful in ridding
agriculture policy of much of the weight of government intrusion that
burdened it for years, there are still hidden subsidies costing
taxpayers billions. This legislation would prevent USDA from factoring
cotton industry storage costs into Marketing Loan Program calculations.
This costly and unnecessary benefit is bestowed on no other commodity.
Farmers, except those who produce cotton, are required to pay storage
cost through the maturity date of their support loans. Producers must
prepay or arrange to pay storage costs through the loan maturity date
or USDA reduces the amount of the loan by deducting the amount
necessary for prepaid storage. Cotton producers are not required to
prepay storage costs. When they redeem a loan under marketing loan
provisions or forfeit collateral, USDA pays the cost of accrued
storage.
It is interesting to note, Mr. President, that in a 1994 audit of the
cotton program, USDA's Office of Inspector General found no reason for
USDA to pay for the accrued storage costs of cotton producers. The
Inspector General recommended that USDA ``revise procedures to
eliminate the automatic payment of cotton storage charges by CCC and
make provisions consistent with the treatment of storage charges on
other program crops''.
Although those in the cotton industry will argue that the automatic
payments were eliminated in the Farm Bill, in reality, those payments
are now simply hidden. It's true that certain provisions have been
removed from the statute which mandates that USDA pay these charges.
Now, USDA freely chooses to waste the taxpayers money by paying these
costs, allowing cotton producers to subtract their storage costs from
the market value of their cotton, providing a larger difference with
the loan rate, and therefore receiving a higher return.
Marketing Loan Programs are designed to encourage producers to redeem
their loans and market their crops, but USDA payment of cotton storage
costs discourage loan redemption. As long as the adjusted world
[[Page S7284]]
price is at or below the loan rate, producers can delay loan redemption
in the secure expectation that domestic prices will rise or the
adjusted world price will decline regardless of accruing storage costs.
Mr. President, its time to stop kidding ourselves. Let's eliminate
this subsidy before it costs hardworking Americans any more. Let's
bring equity to the commodities program. Lets finish what the Farm Bill
started--a more market oriented agriculture program. One that benefits
us all.
Mr. President, I ask unanimous consent that the entire 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. 2255
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. STORAGE CHARGES FOR LOAN COMMODITIES.
Subtitle C of the Agricultural market Transition Act (7
U.S.C. 7231 et seq.) is amended by adding at the end the
following:
``SEC. 138. STORAGE CHARGES FOR LOAN COMMODITIES.
``In calculating the amount of a loan deficiency payment or
loan made to a producer for a loan commodity under this
subtitle, the Secretary may not include any storage charges
incurred by the producer in connection with the loan
commodity.''.
______
By Mr. KERRY (for himself, Ms. Snowe, Mr. Hollings, and Mr.
Stevens):
S. 2256. A bill to provide an authorized strength for commissioned
officers of the National Oceanic and Atmospheric Administration Corps,
and for other purposes; to the Committee on Commerce, Science, and
Transportation.
THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION CORPS CONTINUATION
ACT
Mr. KERRY. Mr. President, I am introducing legislation today that
will relieve the hiring freeze on the Commissioned Corps of the
National Oceanic and Atmospheric Administration (NOAA), that was first
imposed following the 1995 National Performance Review. I want to thank
Senators Snowe, Hollings, and Stevens, who have joined me in
cosponsoring this legislation, for their continued leadership on this
issue. This legislation represents another milestone in their
consistent stewardship of the NOAA Corps and the very important part it
plays in NOAA and to our Nation. This legislation will restore
stability and renew the good faith contract made with the men and women
that make up the NOAA Corps by establishing a minimum and maximum
authorized strength for our nation's seventh uniformed service.
The NOAA Corps is an indispensable part of NOAA: a pool of
professionals trained in engineering, earth sciences, oceanography,
meteorology, fisheries science, and other related disciplines. Corps
officers serve in assignments within the five major line offices of
NOAA. They operate ships, fly aircraft into hurricanes, lead mobile
field parties, manage research projects, conduct diving operations, and
serve in staff positions throughout NOAA. They operate the ships that
set buoys used to gather oceanographic and meteorological data on
unusual weather phenomena such as El Nino. They fly research aircraft
into hurricanes that record valuable atmospheric observations. They
conduct hydrographic surveys along our nation's coast in order to make
our waters safe for maritime commerce.
Over three years ago, the Administration proposed that the NOAA Corps
be disestablished and unilaterally imposed a hiring freeze. This action
was based on flawed recommendations by the President's National
Performance Review. A thorough review of the cost studies associated
with the dissolution of the NOAA Corps clearly reflects that no real
savings will be achieved over either the short or long term. In fact,
without commissioned officers, NOAA may incur significant additional
costs in the acquisition of data to fulfill its statutory missions.
Further, recent data indicate that factors such as tort liability were
not even considered as part of the total cost-benefit analysis. The
Administration has ignored the fact that Congress alone has the
authority to set the duties and strength of the uniformed services and
Congress alone must act for the NOAA Corps to be disestablished. I am
convinced that the preponderance of evidence supports the need for the
NOAA Corps to be retained, not disestablished. This legislation will
ensure that the pearl of expertise that resides in the men and women
who make up the NOAA Corps is retained for the nation.
The NOAA Corps hiring freeze has been tantamount to slow motion
dissolution of our nation's seventh uniformed service. At the time the
freeze was imposed, the NOAA Corps had a strength of 411 officers. At
the end of this fiscal year, the projected on-board strength will be
235 officers. Through this three years of adversity, the NOAA Corps has
heroically continued to sail NOAA's fleet and fly its aircraft. At its
current diminished personnel levels, I have become deeply concerned
regarding the NOAA Corps' ability to carry out its mission. In
addition, I am also concerned about the safety of the men and women
aboard NOAA ships and aircraft.
Last week, Dr. James Baker, the Administrator of NOAA, announced a
plan for restructuring the NOAA Corps. This plan calls for a further
reduction of the Corps strength from its current level of 248 officers
to 240 officers. In addition, it calls for a civilian Senior Executive
Service member to manage the Corps. This restructuring plan will
maintain a cloud of uncertainty over the future of the NOAA Corps,
diminishing its viability and culminating in its ultimate elimination.
The proposed level of 240 officers will be inadequate to staff NOAA
ships and aircraft. There are currently 70 officer billets aboard NOAA
vessels. Assuming that a NOAA Corps officer spends one third of his or
her career at sea, which is the norm in other seagoing services, a
requirement exists for 210 seagoing officer billets. Likewise, there
are 36 billets aboard NOAA aircraft. Assuming that an officer flies for
two years and is moved to an office support billet for one year, a
requirement exists for 54 aviator billets. Therefore, the minimum
staffing requirement to maintain a viable NOAA Corps is 264 officers.
All services allow for 10 to 15 percent of their personnel to be in a
general detail status (i.e. training classes, travel and temporary
duty). Therefore, I endorse staffing the NOAA Corps at a floor of 264
and a ceiling of 299 officer billets which corresponds to a general
detail percentage that is consistent with the practices of other
uniformed services. This level is consistent with the already-achieved
reduction of 130 billets that was recommended by the National
Performance Review.
The proposal to establish a civilian position to manage the NOAA
Corps in place of the current flag officer creates an extra layer of
management that is not required. A NOAA Corps flag officer is required
to carry out NOAA fleet business with flag officers of the other
services. As the civilian Administrator of NOAA, Dr. Baker is in a
position to oversee the NOAA Corps, working with its senior flag
officer.
Mr. President, this legislation will establish staffing levels for
the NOAA Corps that will provide some assurance of long term viability.
It will establish a floor strength of 264 officers with a ceiling of
299 officers. It is time that we reaffirm our commitment to studying
the earth's oceans and atmosphere by insuring that the NOAA Corps is
staffed at the appropriate level.
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. 2256
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Oceanic and
Atmospheric Administration Corps Continuation Act''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Tracing its roots back to 1807 when President Thomas
Jefferson signed a bill for the ``Survey of the Coast'', the
National Oceanic and Atmospheric Administration Corps has
served the armed services and the Nation consistently and
ably for almost two centuries.
(2) The National Oceanic and Atmospheric Administration
Corps is a dedicated and specialized uniformed officer corps
that operates vessels and planes, provides important
scientific and technical services, and carrier out
programmatic responsibilities throughout the National Oceanic
and Atmospheric Administration.
(3) The smallest of the seven uniformed services, the
National Oceanic and Atmospheric Administration Corps grew in
size
[[Page S7285]]
from 275 officers in 1970, the year the National Oceanic and
Atmospheric Administration was created, to 411 officers in
1994.
(4) The National Oceanic and Atmospheric Administration
Corps has met or exceeded the 1996 National Performance
Review recommendation which called for a reduction of 130
officers from the 1994 level.
(5) Federally-sponsored studies conclude that no immediate
or long-term cost savings would be achieved by replacing the
National Oceanic and Atmospheric Administration Corps with a
comparable civilian entity.
(6) As a result of the hiring freeze imposed on the
National Oceanic and Atmospheric Administration Corps,
positions necessary to maintain the statutorily mandated
operation of the vessel and aircraft fleets of the National
Oceanic and Atmospheric Administration have not been filled,
valuable research work has been delayed, and the hydrography
expertise of the National Oceanic and Atmospheric
Administration, that is critical to the international trade
of the United States, has been compromised.
SEC. 3. AUTHORIZED NUMBER OF COMMISSIONED OFFICERS.
Section 2 of the Coast and Geodetic Survey Commissioned
Officers' Act of 1948 (33 U.S.C. 853a) is amended--
(1) by redesignating subsections (a) through (3) as
subsections (b) through (f), respectively; and
(2) by inserting before subsection (b), as redesignated,
the following:
``(a) There are authorized to be not less than 264 and not
more than 299 commissioned officers on the active list of the
National Oceanic and Atmospheric Administration.''.
SEC. 4. DESIGNATION OF THE DIRECTOR OF THE NATIONAL OCEANIC
AND ATMOSPHERIC ADMINISTRATION CORPS.
Section 24(a) of the Coast and Geodetic Survey Commissioned
Officers' Act of 1948 (33 U.S.C. 853u(a)) is amended by
inserting ``One such position shall be the director of the
commissioned officers who shall be appointed from the
officers on the active duty promotion list serving in or
above the grade of captain, and who shall be responsible for
administration of the commissioned officers, and for
oversight of the operation of the vessel and aircraft fleets,
of the Administration.'' before ``An officer''.
SEC. 5. RELIEF FROM HIRING FREEZE.
The Secretary of Commerce immediately shall relieve the
moratorium on new appointments of commissioned officers to
the National Oceanic and Atmospheric Administration Corps.
Ms. SNOWE. Mr. President, I am pleased to join my Commerce
Committee colleagues Senators Kerry, Stevens, and Hollings in
introducing legislation today to reauthorize the National Oceanic and
Atmospheric Administration (NOAA) Corps.
The NOAA Corps is a uniformed officer service that fulfills a variety
of important missions for the agency and the public. NOAA Corps
officers manage the operations of NOAA's research and survey vessels,
as well as its aircraft. They serve as pilots and navigators, and as
key scientific and engineering personnel involved with the missions for
which the vessels and aircraft are being used. These missions include
fisheries research, hydrographic surveys, oceanographic research, and
airborne research on hurricanes, among others.
In addition to field missions, NOAA Corps officers perform a variety
of shoreside tasks, from managing the ground support for the vessel and
aircraft operations, to serving in management and technical support
positions in offices throughout NOAA's line agencies.
At the outbreak of World War I, personnel and equipment from the
Coast and Geodetic Survey--one of NOAA's predecessor organizations--
were transferred to the War Department for military missions during the
war, and the personnel were given military commissions. In World War
II, about half of the Survey's commissioned officers and vessels were
transferred to the war effort. Although all Survey personnel resumed
civilian duties after the war, the commissioned Corps has continued to
exist since that time.
But in recent years, some questioned whether it still makes sense to
retain a uniformed Corps to perform these missions for NOAA. As part of
its National Performance Review in 1994, the Clinton Administration
determined that a uniformed Corps was no longer necessary, and it
recommended that the organization be disestablished and replaced with a
civilian staff. The Administration argued that the disestablishment of
the Corps would result in some budget savings to the federal government
and increase operational flexibility.
Unfortunately, the Congress did not receive a legislative proposal
for disestablishment from the Administration until May of last year,
and in the interim, the Corps was subject to administrative hiring
freezes and annual appropriations riders that whittled the Corps' ranks
by more than 25%. Since last year, the Corps has continued to shrink
through attrition. Understandably, the morale of the Corps members has
been negatively affected by these actions and the uncertainty about
their future. As a result of these developments combined, important
NOAA operations have been negatively affected.
Last fall, the Subcommittee on Oceans and Fisheries, which I chair,
held a hearing on the Administration's disestablishment proposal. The
Administration claimed that the replacement of the Corps with civilian
personnel would save $2 million or more annually for the Federal
government, primarily because of lower retirement costs for a civilian
workforce. But upon examination by the Subcommittee, these estimated
savings appeared to be suspect. The non-retirement costs of a civilian
workforce could be much higher than the Administration estimated, and
the likelihood of finding qualified civilians to replace the Corps
officers in a short period of time is likewise very uncertain. In my
view, the budget savings achieved by disestablishing the Corps would be
marginal at best, but the American people would be losing a highly
dedicated and professional cadre of men and women to perform many of
NOAA's essential missions.
Very recently, the Administration reconsidered its disestablishment
proposal and has decided to abandon it. The Administration now proposes
to maintain a streamlined NOAA Corps of 240 officers. While I
appreciate the Administration's willingness to honestly reassess a
proposal that it had advocated since 1994, I fear that the 240 number
is too low to effectively operate NOAA's vessels, aircraft, and
associated support units. The bill that we are introducing today
reauthorizes the Corps and establishes a force range of between 264 and
299 officers. This represents a substantial down-sizing of the Corps
from a level of over 400 in 1994, but it ensures that a sufficient
number of officers will be available to maintain NOAA's missions at a
high level of effectiveness while providing a substantial degree of
management flexibility to the agency. The bill also requires the
Administration to immediately rescind the current moratorium on the
commissioning of new officers and it requires the director of the Corps
to be a Corps officer.
This legislation is the product of careful examination and
deliberation by the Subcommittee on Oceans and Fisheries and it
represents a responsible solution to a problem that has been lingering
for four years. I strongly urge my colleagues to support this
bill.
Mr. HOLLINGS. Mr. President, today, Senators Kerry, Snowe,
Stevens, and I are introducing a bill which will address the future of
the smallest of this Nation's seven uniformed services, the
commissioned officer corps (Corps) of the National Oceanic and
Atmospheric Administration (NOAA). This bill will set a floor on Corps
officers of 264 and a ceiling of 299, designate a flag officer as the
Director of the Corps, and lift the hiring freeze on NOAA Corps
officers.
Let me be clear at the outset. Since 1995 when the Administration
proposed the disestablishment of the NOAA Corps, I have thought it was
a solution in search of a problem. The NOAA Corps is a dedicated and
highly skilled group of men and women who have served this Nation
consistently and ably for almost two centuries. This uniformed officer
corps operates NOAA vessels and planes, provides important scientific
and technical services, and carries out programmatic responsibilities
throughout the agency.
NOAA Corps officers do more than routine work; they maintain an
ability to provide a specialized, rapid response in emergencies. The
actions of the NOAA ship, RUDE, after the tragic crash of TWA Flight
800 demonstrate the importance of the Corps' work to NOAA and to the
Nation. Managed and operated by NOAA Corps officers, the RUDE's sonar
capabilities were used to locate crash debris and map the wreckage. In
addition, ship officers served as liaison between Navy divers and
members of the National Transportation Safety Board. The NOAA officers
aboard the RUDE and those on-shore directing charting operations
impressed the other myriad agencies who
[[Page S7286]]
responded to the disaster, even earning the Coast Guard's Public
Service Commendation. As one newspaper headline put it, ``Obscure team
gains respect at TWA site.''
Corps officers also pilot NOAA aircraft through hurricanes at low
altitudes, the only pilots trained with such skills anywhere in the
world. The information they collect is essential for projecting the
track and strength of hurricanes so that people in the path can
prepare.
It should be clear to all of us that the NOAA Corps provides a unique
and valuable service. Speaking frankly, I do not understand the efforts
to disestablish the Corps or let it wither and die through a hiring
freeze. None of the studies on converting the Corps to civilian status
have shown a significant cost savings. A GAO study showed savings of 2
percent, another study by Arthur Andersen showed a cost increase of 2
percent, and the Hay/Huggins report concluded that costs were
essentially the same for the Corps or civilians. It seems to me that
there is not a justification for doing away with the Corps based on
these studies of cost savings.
This is an issue that must be resolved. The Corps has not been
permitted to recruit new officers since October 1994, and this
methodical, de factor elimination of positions has continued without
the oversight of approval of the Congress. While we have been
discussing the issue, the natural retirements and attribution of time
have been slowly bleeding the strength out of the NOAA Corps. The Corps
stands now at 248 members, down 44 percent from its highest level of
439 in 1995.
That is why we are introducing the NOAA Corps Continuation Act today.
We cannot let the members of this service continue in limbo. NOAA's
recently released plan to restructure the Corps is not acceptable. It
takes into account neither the reductions in personnel already achieved
nor the need for officers to have shore assignments. We need to set a
realistic strength level for the Corps, designate a Director of the
Corps from within the ranks, and life the hiring freeze. I thank
Senator Kerry for his leadership on this issue and urge my colleagues
to act swiftly on this legislation so that NOAA can continue to have
the Corps' expertise in carrying out the agency's vital
missions.
______
By Ms. LANDRIEU:
S. 2257. A bill to reauthorize the National Historic Preservation
Act; to the Committee on Energy and Natural Resources.
____________________