Congressional Record, Volume 145 Issue 9 (Wednesday, January 20, 1999)

[Congressional Record Volume 145, Number 9 (Wednesday, January 20, 1999)]
[Senate]
[Pages S750-S799]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. HATCH (for himself, Mr. Sessions, Mr. Thurmond, Mr.
Abraham, Mr. DeWine, Mr. Ashcroft):
S. 254. A bill to reduce violent juvenile crime, promote
accountability by rehabilitation of juvenile criminals, punish and
deter violent gang crime, and for other purposes; read the first time.

VIOLENT AND REPEAT JUVENILE OFFENDER ACCOUNTABILITY AND REHABILITATION
ACT OF 1999

Mr. HATCH. Mr. President, I am proud today to introduce the Violent
and Repeat Juvenile Offender Accountability and Rehabilitation Act of
1999. I am pleased to be joined by Senator Sessions, the distinguished
chairman of the Youth Violence Subcommittee, as well as Senator DeWine.
There are few issues that will come before the Senate this year that
touch the lives of more of our fellow Americans than our national
response to juvenile crime. Crime and delinquency among juveniles is a
problem that troubles us in our neighborhoods, schools and parks. It is
the subject across the dinner table, and in those late night, worried
conversations all parents have had at one time or another. The subject
is familiar--how can we prevent our children from falling victim--
either to crime committed by another juvenile, or to the lure of drugs,
crime, and gangs.
Their concerns should be our concerns. The sad reality is that we can
no longer sit silently by as children kill children, as teenagers
commit truly heinous offenses, as our juvenile drug abuse rate
continues to climb. In 1997, juveniles accounted for nearly one fifth--
18.7 percent--of all criminal arrests in the United States. Persons
under 18 committed 13.5 percent of all murders, over 17 percent of all
rapes, nearly 30 percent of all robberies, and 50 percent of all
arsons.
In 1997, 183 juveniles under 15 were arrested for murder. Juveniles
under 15 were responsible for 6.5 percent of all rapes, 14 percent of
all burglaries, and one third of all arsons. And, unbelievably,
juveniles under 15--who are not old enough to legally drive in any
state--in 1997 were responsible for 10.3 percent of all auto thefts.
To put this in some context, consider this: in 1997, youngsters age
15 to 19, who are only 7 percent of the population, committed 22.2
percent of all crimes, 21.4 percent of violent crimes, and 32 percent
of property crimes.
And although there are endless statistics on our growing juvenile
crime problem, one particularly sobering fact is that, between 1985 and
1993, the number of murder cases involving 15-year olds increased 207
percent. We have kids involved in murder before they can even drive.

Even my state of Utah has not been immune from these trends. Indeed,
a 1997 study by Brigham Young University Professor Richard Johnson
found that Utah's juvenile arrest rate is the highest in the nation.
Additionally, as an indication of the increasingly serious nature of
juvenile offenses in Utah, between 1990 and 1996 the number of
juveniles sentenced to youth corrections increased 142 percent, and the
number of juveniles requiring detention in a secure facility more than
doubled. And in 1995, the average Utah juvenile offender had
accumulated an astonishing average of 23 misdemeanors, 8 felony
convictions, and 2.4 status offense convictions before being sentenced
to a secure youth facility.
In short, our juvenile crime problem has taken a new and sinister
direction. But cold statistics alone cannot tell the whole story. Crime
has real effects on the lives of real people. Last fall, I read an
article in the Richmond Times-Dispatch by my good friend, crime
novelist Patricia Cornwell. It is one of the finest pieces I have read
on the effects of and solutions to our juvenile crime problem.
Let me share with my colleagues some of what Ms. Cornwell, who has
spent the better part of her adult life studying and observing crime
and its effects, has to say. She says ``when a person is touched by
violence, the fabric of civility is forever rent, or ripped, or
breached . . .'' This is a graphic but accurate description. Countless
lives can be ruined by a single violent crime. There is, of course, the
victim, who may be dead, or scarred for life. There are the family and
friends of the victim, who are traumatized as well, and who must live
with the loss of a loved one. Society itself is harmed, when each of us
is a little more frightened to walk on our streets at night, to use an
ATM, or to jog or bike in our parks. And, yes, there is the offender
who has chosen to throw his or her life away. Particularly when the
offender is a juvenile, family, friends, and society are made poorer
for the waste of potential in every human being. One crime, but
permanent effects when ``the fabric of civility is rent.''
This is the reality that has driven me to work for the last three
years to address this issue. In this effort, I have been joined by a
bipartisan majority of the Senate Judiciary Committee, which last
Congress reported comprehensive legislation on a bipartisan,

[[Page S751]]

two to one vote. Indeed, among members of the Youth Violence
Subcommittee, the vote was seven to two in favor of the bill.
The Judiciary Committee's legislation last Congress would have
fundamentally reformed the role played by the federal government in
addressing juvenile crime in our Nation. It was supported by law
enforcement organizations such as the Fraternal Order of Police, the
National Sheriffs Association, and the National Troopers Coalition, as
well as the support of juvenile justice practitioners such as the
National Council of Juvenile and Family Court Judges, and victim's
groups including the National Victims Center and the National
Organization for Victims Assistance.
The bill we introduce today builds on those efforts. Our reform
proposal includes the best of what we know works. It combines tough
measures to protect the public from the worst juvenile criminals, smart
measures to provide intervention and correction at the earliest acts of
delinquency, and compassionate measures to rehabilitate juvenile
offenders and to supplement and enhance extensive existing prevention
programs to keep juveniles out of the cycle of crime, violence, drugs,
and gangs.
Mr. President, let me spell out in great detail the provisions of
this bill, and how it will help reform the juvenile justice system that
is failing the victims of juvenile crime, failing too many of our young
people, and ultimately, failing to protect the public.
First, this bill reforms and streamlines the federal juvenile code,
to responsibly address the handful of cases each year involving
juveniles who commit crimes under federal jurisdiction. Our bill sets a
uniform age of 14 for the permissive transfer of juvenile defendants to
adult court, permits prosecutors and the Attorney General to make the
decision whether to charge a juvenile offender as an adult, and permits
in certain circumstances juveniles charged as an adult to petition the
court to be returned to juvenile status.
It also provides that when prosecuted as adults, juveniles in Federal
criminal cases will be subject to the same procedures and penalties as
adults, except for the application of mandatory minimums in most cases.
Of course, the death penalty would not be available as punishment for
any offense committed before the juvenile was 18.
The bill similarly provides that juveniles tried as adults and
sentenced to prison must serve their entire sentences, and may not be
released on the basis of attaining their majority, and applies to
juveniles convicted as adults the same provisions of victim
restitution, including mandatory restitution, that apply to adults.
Finally, in reforming the federal system, I believe that we must lead
by example. So our bill provides that the federal criminal records of
juveniles tried as adults, and the federal delinquency records of
juveniles adjudicated delinquent for certain serious offenses such as
murder, rape, armed robbery, and sexual abuse or assault, will be
treated for all purposes in the same manner as the records of adults
for the same offenses. Other federal felony juvenile criminal or
delinquency records would be treated the same as adult records for
criminal justice or national security background check purposes.
The bill also permits juvenile federal felony criminal and
delinquency records to be provided to schools and colleges under rules
issued by the Attorney General, provided that recipients of the records
are held to privacy standards and that the records not be used to
determine admission.
Let me assure any who may be concerned that it is not our intent in
reforming the federal juvenile code to federalize juvenile crime--
indeed, no conduct that is not a federal crime now will be if this
reform is enacted. I do not intend or expect a substantial increase in
the number of juvenile cases adjudicated or prosecuted in federal
court. It is our intent, rather, to ensure that when there is a federal
crime warranting the federal prosecution of a juvenile, the federal
government assumes its responsibility to deal with it, rather than
saddling the states with that burden.
Second, at the heart of this bill is an historic reform and
reauthorization of the Juvenile Justice and Delinquency Prevention Act
of 1974, the most comprehensive review of that legislation in 25 years.
The States for several years have been far ahead of the Federal
Government in implementing innovative reforms of their juvenile justice
systems. For example, between 1992 and 1996, of the 50 States and the
District of Columbia, 48 made substantive changes to their juvenile
justice systems. Among the trends in State law changes are the removal
of more serious and violent offenders from the juvenile justice system,
in favor of criminal court prosecution; new and innovative disposition/
sentencing options for juveniles; and the revision, in favor of
openness, of traditional confidentiality provisions relating to
juvenile proceedings and records.
While the States have been making fundamental changes in their
approaches to juvenile justice, however, the Federal Government has
made no significant change to its approach and has done little to
encourage State and local reform. Thus, the juvenile justice terrain
has shifted beneath the Federal Government, leaving its programs and
policies out of step and largely irrelevant to the needs of State and
local governments. This bill corrects this imbalance between State and
Federal juvenile justice policy, and will help ensure that federal
programs support the needs of State and local governments.
First, our bill reforms and strengthens the Office of Juvenile
Justice and Delinquency Prevention (OJJDP) of the Department of
Justice. The effectiveness of the OJJDP will be enhanced by requiring
its Administrator to present to Congress annual plans, with measurable
goals, to control and prevent youth crime, coordinate all Federal
programs relating to controlling and preventing youth crime, and
disseminate to States and local governments data on the prevention,
correction and control of juvenile crime and delinquency, and report on
successful programs and methods.
And, most important to state and local governments, in the future,
OJJDP will serve as a single point of contact for States, localities,
and private entities to apply for and coordinate all federal assistance
and programs related to juvenile crime control and delinquency
prevention. This one-stop-shopping for federal programs and assistance
will help state and local governments focus on the problem, instead of
on how to navigate the federal bureaucracy.
Second, our reform bill consolidates numerous JJDPA programs,
including Part C Special Emphasis grants, State challenge grants, boot
camps, and JJDPA Title V incentive grants, under an enhanced $200
million per year prevention challenge block grant to the States. The
bill also reauthorizes the JJDPA Title II Part B State formula grants.
In doing so, it also reforms the current core mandates on the States
relating to the incarceration of juveniles to ensure the protection of
juveniles in custody while providing state and local governments with
needed flexibility.
This flexibility is particularly important to rural states, where
immediate access to a juvenile detention facility might be difficult.
Since many communities cannot afford separate juvenile and adult
facilities, law enforcement officers must drive hours to transport
juvenile offenders to the nearest facility, instead of patrolling the
streets. Another unintended consequence of JJDPA is the release of
juvenile offenders because no beds are available in juvenile facilities
or because law enforcement officials cannot afford to transport youths
to juvenile facilities. Juvenile criminals are released even though
space is available to detain them in adult facilities. Our reform will
provide the states with a degree of flexibility which currently does
not exist.
However, this flexibility is not provided at the expense of juvenile
inmate safety. The bill strictly prohibits placing juvenile offenders
in jail cells with adults. No one supports the placing of children in
cells with adult offenders. To be clear--nothing in the bill will
expose juveniles to any physical contact by adult offenders. Indeed,
the legislation is explicit that, if states are to qualify for federal
funds, they may not place juvenile delinquents in detention under
conditions in which the juvenile can have physical contact, much less
be physically harmed by, an adult inmate.

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These provisions are largely based on H.R. 1818 from the 105th
Congress, but are improved to ensure that abuse of juvenile delinquent
inmates is not permitted by incorporating definitions of what
constitutes unacceptable contact between juvenile delinquents and adult
inmates.
Third, and finally, our reform of the JJDPA reauthorizes and
strengthens those other parts of the JJDPA that have proven effective.
For example, the National Center for Missing and Exploited Children and
the Runaway and Homeless Youth Act are reauthorized and funded. Gang
prevention programs are reauthorized. And important, successful
programs to provide mentoring for young people in trouble with the law
or at risk of getting into trouble with the law are reauthorized and
expanded. Operating through the Cooperative Extension Service program
sponsored by the Department of Agriculture, the University of Utah has
developed a ground-breaking and highly successful program that mentors
to entire families--pairing college age mentors with juveniles in
trouble or at risk of getting in trouble with the law, and pairing
senior citizen couples with the juvenile's parents and siblings. This
program gets great bang for the buck. So our bill provides
demonstration funds to expand this program and replicate its success in
other states.
Finally, our bill provides an important new program to encourage
state programs that provide accountability in their juvenile justice
systems. All or nearly all of our states have taken great strides in
reforming their systems, and it is time for the federal government's
programs to catch up and provide needed assistance.
Despite reforms in recent years, all too often, the juvenile justice
system ignores the minor crimes that lead to the increasingly frequent
serious and tragic juvenile crimes capturing headlines. Unfortunately,
many of these crimes might have been prevented had the warning signs of
early acts of delinquency or antisocial behavior been heeded. A
delinquent juvenile's critical first brush with the law is a vital
aspect of preventing future crimes, because it teaches an important
lesson--what behavior will be tolerated. Accountability is not just
about punishment--although punishment is frequently needed. It is about
teaching consequences and providing rehabilitation to youth offenders.
According to a recent Department of Justice study, juveniles
adjudicated for so-called index crimes--such as murder, rape, robbery,
assault, burglary, and auto theft--began their criminal careers at an
early age. The average age for a juvenile committing an index offense
is 14.5 years, and typically, by age 7, the future criminal is already
showing minor behavior problems. If we can intervene early enough,
however, we might avert future tragedies. Our bill provides a new
Juvenile Accountability Block Grant to reform federal policy that has
been complicit in the system's failure, and provide states with much
needed funding for a system of graduated sanctions, including community
service for minor crimes, electronically monitored home detention, boot
camps, and traditional detention for more serious offenses.
And let there be no mistake--detention is needed as well. Our first
priority should be to keep our communities safe. We simply have to
ensure that violent people are removed from our midst, no matter their
age. When a juvenile commits an act as heinous as the worst adult
crime, he or she is not a kid anymore, and we shouldn't treat them as
kids.
State receipt of the incentive grants would be conditioned on the
adoption of three core accountability policies: the establishment of
graduated sanctions to ensure appropriate correction of juvenile
offenders, drug testing juvenile offenders upon arrest in appropriate
cases; and recognition of victims rights and needs in the juvenile
justice system.

Meaningful reform also requires that a juvenile's criminal record
ought to be accessible to police, courts, and prosecution, so that we
can know who is a repeat or serious offender. Right now, these records
simply are not generally available in NCIC, the national system that
tracks adult criminal records. Thus, if a juvenile commits a string of
felony offenses, and no record is kept, the police, prosecutors, judges
or juries will never know what he did. Maybe for his next offense,
he'll get a light sentence or even probation, since it appears he's
committed only one felony in his life instead 10 or 15. Such a system
makes no sense, and it doesn't protect the public.
So the reform we offer in this bill also provides the first federal
incentives for the integration of serious juvenile criminal records
into the national criminal history database, together with federal
funding for the system.
Finally, we all recognize the value of education in preventing
juvenile crime and rehabilitating juvenile offenders. When trouble-
causing juveniles remain in regular classrooms, they frequently make it
difficult for all other students to learn. Yet, removing such juveniles
from the classroom without addressing their educational needs virtually
guarantees that they will fall further into the vortex of crime and
delinquency. The costs are high--to the juvenile, but also to victims
and to society. These juveniles too frequently become crime committing
adults, with all the costs that implies--costs to victims, and the cost
of incarcerating the offenders to protect the public. So our bill tries
to break this cycle, by providing a three-year $45 million
demonstration project to provide alternative education to juveniles in
trouble with or at risk of getting in trouble with the law.
The bill we introduce today authorizes significant funding for the
programs I have described. In all, our bill authorizes $1 billion per
year for 5 years, in the following categories: $450 million per year
for Juvenile Accountability Block Grants; $435 million per year for
prevention programs under the JJDPA, including $200 million for
Juvenile Delinquency Prevention Block Grants, $200 million for Part B
Formula grant prevention programs, and $35 million for Gangs, Mentoring
and Discretionary grant programs; $75 million per year for grants to
states to upgrade and enhance juvenile felony criminal record histories
and to make such records available within NCIC, the national criminal
history database used by law enforcement, the courts, and prosecutors;
and $40 million per year for NIJ research and evaluation of the
effectiveness of juvenile delinquency prevention programs.
Additionally, the bill authorizes $100 million per year for joint
Federal-State-local law enforcement task forces to address gang crime
in areas with high concentrations of gang activity. $75 million per
year of this funding is authorized for establishment and operation of
High Intensity Interstate Gang Activity Areas, and the remaining $25
million per year is authorized for community-based prevention and
intervention for gang members and at-risk youth in gang areas.
And, finally, as I have already noted, the bill authorizes $45
million over 3 years for innovative alternative education programs to
make our schools safer places of learning while helping ensure that the
youth most at risk do not get left behind.
Lastly, Mr. President, let me address a provision in the bill which
will prohibit firearms possession by violent juvenile offenders. This
section extends the ban in current law on firearm ownership by certain
felons to certain juvenile offenders. Juveniles who are adjudicated
delinquent for an offense which would be a serious violent felony as
defined in 18 U.S.C. 3559(C)(2)(f)(i)--the federal three strikes
statute--were the offense committed by an adult will no longer be able
to legally own firearms. This is common sense. If tried and convicted
as adults, these criminals would automatically forfeit their right to
own a gun.
However, we should learn our lesson as well from the so-called
domestic violence gun ban enacted several years ago. If the offense
records that allow us to know who is covered by the ban are not
available, the law is hollow, or worse--it will be enforced only in
arbitrary cases. For this reason, the ban we propose is prospective
only, applying only to delinquent acts committed after records of such
offenses are routinely available within the National Instant Check
System instituted pursuant to the Brady Law.
We should also resist seeing this provision as any sort of panacea.
Laws banning criminals from owning firearms have not stopped them from
doing so, for a simple reason--criminals do not respect or obey the
law. So

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while this provision is an appropriate step, we should be under no
illusion that it is the answer to our juvenile crime problem.

Mr. President, I believe that we all agree that it is far better to
prevent the fabric of civility from being rent than to deal with the
aftermath of juvenile crime. In the face of a confounding problem like
juvenile crime, it is tempting to look for easy answers. I do not
believe that we should succumb to this temptation. We are faced, I
believe, with a problem which cannot be solved solely by the enactment
of new criminal prohibitions. It is at its core a moral problem.
Somehow, too frequently we have failed as a society to pass along to
the next generation the moral compass that differentiates right from
wrong. This cannot be legislated. It will not be restored by the
enactment of a new law or the implementation of a new program. But it
can be achieved by communities working together to teach accountability
by example and by early intervention when the signs clearly point to
violent and antisocial behavior.
Mr. President, that is what the bill we introduce is all about. It is
a comprehensive approach to this national problem. I believe that it
now is time for the Senate to act. I urge my colleagues to review this
legislation, to support it, and to support its early debate and passage
by the Senate.
Mr. President, I ask unanimous consent that a bill summary prepared
by the Judiciary Committee staff and an article by Patricia Cornwell be
printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

The Violent and Repeat Juvenile Offender Accountability and
Rehabilitation Act of 1999--Section-by-Section Analysis

Attached is a summary of the major provisions of S. , the
Hatch-Sessions Violent and Repeat Juvenile Offender
Accountability and Rehabilitation Act of 1999, as introduced
January 19, 1999.
Should you have any questions about the bill not answered
by this summary or the Committee Report, please call Mike
Kennedy or Rhett DeHart of the Senate Judiciary Committee
staff at (202) 224-5225.

general provisions

Sec. 1 Short Title, Table of Contents. This section
entitles the bill as the ``Violent and Repeat Juvenile
Offender Act of 1999'', and provides a table of contents for
the bill.
Sec. 2 Findings and Purpose. This section provides
Congressional findings related to juvenile crime, the
juvenile justice system, and the changes needed to reform the
juvenile justice system to curb youth violence, ensure
accountability by youthful criminals, improve federal
juvenile delinquency prevention efforts, and recognize the
needs of crime victims.
Sec. 3 Severability. This section provides severability
for the provisions of the Act.

title i--juvenile justice reform

This title reforms the procedures by which juveniles who
commit Federal crimes are prosecuted and punished.
Sec. 101 Repeal of General Provision. This section repeals
the provision establishing the general practice of
surrendering to State authorities juveniles arrested for the
commission of Federal offenses.
Sec. 102 Treatment of Federal Juvenile Offenders. General
Provisions: This section gives the U.S. Attorney the
discretion to prosecute juveniles age 14 years or older as
adults for violations of Federal law which are serious
violent felonies or serious drug offenses (as these terms are
defined in 18 U.S.C. 3559, the Federal 3-strike statute).
Juveniles 14 and older may be prosecuted as adults for any
other felony violation of Federal law only with the approval
of the Attorney General. If approval is not given, or, for
all misdemeanor violations of Federal law, juveniles would be
proceeded against as juveniles, or referred to State or
tribal authorities. Referral to state or tribal authorities
would be presumed in all cases of concurrent state and
federal jurisdiction, unless a state refused the case, or an
overriding federal interest existed. In the special case of
juveniles alleged to have committed a federal offense and who
have a prior occasion been tried and convicted as an adult in
federal court, waiver to adult status would be automatic.
Reverse Waiver Provision: Juveniles 15 and younger charged
as an adult for serious violent felonies or serious drug
offenses, and juveniles of any age charged as an adult for
other felonies, may appeal their waiver to adult status. The
juvenile would have 20 days to seek a judicial order
returning the juvenile to juvenile status. The prosecutor
would be permitted in interlocutory appeal from an adverse
ruling, but a juvenile's appeal would be consolidated at the
end of the case.
Application to Indian Tribes: This section also includes a
limited tribal opt-in for Native American juveniles 15 and
under when federal jurisdiction is based solely on the
commission of the offense on tribal land. A tribal opt-in to
federal procedures would be required to prosecute these
juveniles as adults, although they could still be adjudicated
in federal delinquency proceedings, even in the absence of a
tribal opt-in.
Procedures: When prosecuted as adults, juveniles in Federal
criminal cases would be subject to the same procedures and
penalties as adults, including availability of records, open
proceedings, and sentencing procedures. Exceptions are
provided waiving the application of mandatory minimums to
juveniles under age 16 who have no previous serious violent
felony or serious drug offense convictions, and barring the
availability of the death penalty in any offense committed
before the juvenile was 18.
This section also provides that juveniles tried as adults
and sentenced to prison must serve their entire sentences,
and may not be released on the basis of attaining their
majority, and applies to juveniles convicted as adults the
same provisions of victim restitution, including mandatory
restitution, that apply to adults.
Sec. 103 Definitions. This section provides definitions
for terms used, including new definitions to ensure that
juveniles accused or convicted of Federal offenses are
separated from adults and to conform the definition of the
term ``juvenile'' with the procedural changes made by this
title.
Sec. 104 Notification after Arrest. This section conforms
the requirement, in 18 U.S.C. 5033, that certain persons be
notified of the arrest of a juvenile for a Federal crime,
with the procedural changes in section 102 of this subtitle,
which vests discretion to prosecute juveniles as adults with
the U.S. Attorney for the district in the appropriate
jurisdiction. This section also provides for the notification
of the juveniles' parents or guardians, and prohibits the
post-arrest housing of juveniles with adults.
Sec. 105 Release and Detention Prior to Disposition. This
section provides for pretrial detention juveniles tried as
adults on the same basis as adults, and prohibits the
pretrial or pre-disposition detention of juveniles with
adults.
Sec. 106 Speedy Trial. This section extends, from 30 to 70
days, the time in which the trial of a juvenile in detention
must be commenced, and applies in juvenile cases the same
tolling provisions for such time period that apply in adult
prosecutions.
Sec. 107 Dispositional Hearings. This section provides for
the sentencing of that juveniles found to be delinquent, but
not tried as adults. It provides for a hearing on the matter
within 40 days of an adjudication of delinquency, and
provides for victim allocution at the hearing. The section
provides a range of sentencing options to the court,
including probation, fines, restitution, and/or imprisonment,
and provides that terms of imprisonment may be imposed upon
them for the same term as adults, except that such
imprisonment must be terminated on the juvenile's 26th
birthday. Juveniles sentenced to imprisonment may not be
released solely on the basis of attaining their majority.
Sec. 108 Use of Juvenile Records. This section provides
that the federal criminal records of juveniles tried as
adults, and the federal delinquency records of juveniles
adjudicated delinquent for certain serious offenses such as
murder, rape, armed robbery, and sexual abuse or assault, are
to be treated for all purposes in the same manner as the
records of adults for the same offenses. Other federal felony
juvenile criminal or delinquency records would be treated the
same as adult records for criminal justice or national
security background check purposes.
This section also permits juvenile federal felony juvenile
criminal and delinquency records to be provided to schools
and colleges under rules issued by the Attorney General,
provided that recipients of the records are held to privacy
standards and that the records not be used to determine
admission.
Sec. 109 Implementation of a Sentence for Juvenile
Offenders. This section provides for the implementation of a
sentence on a delinquent or criminal juvenile and directs the
Bureau of Prisons to not confine juveniles in any institution
where the juvenile would not be separated from adult inmates.
Sec. 110 Magistrate Judge Authority Regarding Juvenile
Defendants. This section extends the jurisdiction of Federal
magistrate judges to class A misdemeanors involving
juveniles; permits magistrate judges to impose terms of
imprisonment on juveniles, and conforms the section
conferring authority on magistrate judges with the procedural
changes made by section 102.
Sec. 111 Federal Sentencing Guidelines. This section
conforms the Sentencing Reform Act to ensure that the Federal
Sentencing Guidelines relating to maximum penalties for
violent crimes and serious drug crimes apply to juveniles
tried as adults.
This section also amends the Sentencing Reform Act to
direct the Sentencing Commission to promulgate sentencing
guidelines for sentencing juveniles tried as adults in
Federal court, and for dispositional hearings (the equivalent
of sentencing) for juveniles adjudicated delinquent in the
Federal system.
Sec. 112 Study and Report on Indian Tribal Jurisdiction.
This section requires the Attorney General to study and
report to the Congress on the capabilities of tribal courts
and criminal justice systems relating to the prosecution of
juvenile criminals under tribal jurisdiction, and requires
the Attorney General to evaluate an expansion of tribal court
criminal jurisdiction.

[[Page S754]]

title ii--juvenile gangs

Sec. 201 Solicitation or Recruitment of Persons in
Criminal Gang Activity. This section makes the recruitment or
solicitation of persons to participate in gang activity
subject to a one-year minimum and 10-year maximum penalty, or
a fine of up to $250,000. If a minor is recruited or
solicited, the minimum penalty is increased to four years. In
addition, a person convicted of this crime would have to pay
the costs of housing, maintaining, and treating the juvenile
until the juvenile reaches the age of 18 years.
Sec. 202 Increased Penalties for Using Minors to
Distribute Drugs. This section increases the penalties for
using minors to distribute controlled substances.
Sec. 203 Penalties for Use of Minors in Crimes of
Violence. This section increases twofold, and for a second or
subsequent offense threefold, the penalties for using minors
in the commission of a crime of violence.
Sec. 204 Amendment of Sentencing Guidelines With Respect
to Body Armor. This section directs the United States
Sentencing Commission to provide a minimum two level
sentencing enhancement for any defendant committing a Federal
crime while wearing body armor.
Sec. 205 High Intensity Interstate Gang Activity Areas.
This section authorizes the Attorney General to establish
joint agency task forces to address gang crime in areas with
high concentrations of gang activity. This provision
authorizes $100 million per year for this program; $75
million per year is authorized for establishment and
operation of High Intensity Interstate Gang Activity Areas,
and $25 million per year is authorized for community-based
gang prevention and intervention for gang members and at-risk
youth in gang areas.
Sec. 206 Increasing the Penalty for Using Physical Force
to Tamper With Witnesses, Victims, or Informants. This
section increases the penalty from a maximum of 10 years'
imprisonment to a maximum of 20 years' imprisonment for using
or threatening physical force against any person with intent
to tamper with a witness, victim, or informant. This section
also adds a conspiracy penalty for obstruction of justice
offenses involving victims, witnesses, and informants. In
addition, this section makes traveling in interstate or
foreign commerce to bribe, threaten or intimidate a witness
to delay or influence testimony in a State criminal
proceeding a violation of the Federal Travel Act, 18 U.S.C.
Section 1952.

title iii--juvenile crime control, accountability, and delinquency
prevention

This title reforms and enhances federal assistance to State
and local juvenile crime control and delinquency prevention
programs. Subtitle A amends and reauthorizes the Juvenile
Justice and Delinquency Prevention Act of 1974 (JJDPA), to
provide assistance to States for effective youth crime
control and accountability.
Sec. 301 Findings; Declaration of Purpose; Definitions.
This section rewrites Title I of the JJDPA. It updates and
revises the Congressional findings and declaration of purpose
contained in the JJDPA to reflect the reality of violent
juvenile crime, promote the primacy of accountability in the
juvenile justice system, and recognize the rights and needs
of victims of juvenile crime. This section also revises and
updates the definitions governing the JJDPA.
Sec. 302 Juvenile Crime Control and Delinquency
Prevention. This section rewrites Title II of the JJDPA. It
reforms and renames the current Office of Juvenile Justice
and Delinquency Prevention within the Department of Justice,
improves services to State and local governments, and reforms
and streamlines existing JJDPA grant programs. Among the
specific provisions of the rewritten JJDPA Title II:
Reforms JJDPA Title II Part A--the Office of Juvenile
Justice and Delinquency Prevention (OJJDP) of the Department
of Justice, is renamed the Office of Juvenile Crime Control
and Prevention (OJCCP), with an Administrator appointed by
the President and confirmed by the Senate. This section also
enhances the effectiveness of the OJCCP by requiring the
OJCCP Administrator to: present to Congress annual plans,
with measurable goals, to control and prevent youth crime;
coordinate all Federal programs relating to controlling and
preventing youth crime; disseminate to States and local
governments data on the prevention, correction and control of
juvenile crime and delinquency, and report on successful
programs and methods; and serve as a single point of contact
for States, localities, and private entities to apply for and
coordinate all federal assistance and programs related to
juvenile crime control and delinquency prevention.
Consolidates numerous JJDPA programs, including Part C
Special Emphasis grants, State challenge grants, boot camps,
and JJDPA Title V incentive grants, under an enhanced
prevention challenge block grant to the States.
Reauthorizes the State formula grants under Part B of Title
II of the JJDPA:
Reforms the 3 current ``core mandates'' on the States
relating to the incarceration of juveniles (known as sight
and sound separation, jail removal, and status offender
mandates,) to ensure the protection of juveniles in custody
while providing state and local governments with needed
flexibility; provisions are based on H.R. 1818 from the 105th
Congress, but to ensure that abuse of juvenile delinquent
inmates is not permitted, includes modified definitions from
the 105th Congress S. 10 regarding what constitutes contact
between juveniles and adults--no prohibited physical contact
or sustained oral communication would permitted between
juveniles delinquents in detention and adult inmates;
Modifies the current ``core mandate'' requiring states to
address efforts to reduce the disproportionate number of
minorities in juvenile detention in comparison with their
proportion to the population at large, to make the language
race-neutral and constitutional;
The four ``core mandates'' retained in modified form are
each enforceable by a 12.5 percent reduction in a State's
Part B funding for non-compliance. The Administrator may
waive the penalty.
Revises JJDPA Title II Part C, to enhance federal research
efforts into successful juvenile crime control and
delinquency prevention programs; reauthorizes JJDPA Title II
Part D Gang prevention programs, and reforms the program to
provide an emphasis on the disruption and prosecution of
gangs; includes a discretionary prevention grant program
designated as Part E of Title II of the JJDPA; retains the
current Part G Mentoring program under Title II of the JJDPA,
redesignating it as Part F, and adding a pilot program to
encourage and develop mentoring programs that focus on the
entire family instead of simply the juvenile and which
utilize the existing resources and infrastructure of the
Cooperative Extension Services of Land Grant Universities;
and designates JJDPA Title II Part G for administrative
provisions, including: providing rules against use of federal
funds for behavior control experimentation, lobbying, or
litigation; subjecting JJDPA and Juvenile Accountability
Block Grants (in Title III, Subtitle B of this bill) to a
religious and charitable non-discrimination provision cross-
referenced from the welfare reform law; providing significant
funding directly from the Department of Justice for juvenile
delinquency prevention and juvenile accountability programs
in Indian country; and providing authorizations of
appropriations for the JJDPA and the Juvenile Accountability
Block Grants, as follows:
Authorizes $1 billion per year for five years, under the
following formula: $450 million (45%) for Juvenile
Accountability Block Grants; $435 million (43.5%) for
prevention programs under the JJDPA, including $200 million
for Juvenile Delinquency Prevention Block Grants, $200
million for Part B Formula grant prevention programs, and $35
million for Gangs, Mentoring and Discretionary grant
programs; $75 million (7.5%) for grants to states to upgrade
and enhance juvenile felony criminal record histories and to
make such records available within NCIC, the national
criminal history database used by law enforcement, the
courts, and prosecutors; and $40 million (4%) for NIJ
research and evaluation of the effectiveness of juvenile
delinquency prevention programs.
Sec. 303 Runaway and Homeless Youth. This section reforms
the Runaway and Homeless Youth program, and reauthorizes it
through FY 2004. The reforms steamline the program, provide
for targeting federal assistance to areas with the greatest
need, and make numerous technical changes.
Sec. 304 National Center for Missing and Exploited
Children. This section improves and reauthorizes the Missing
and Exploited Children program through FY 2004, providing on-
going authorization for grants to the National Center for
Missing and Exploited Children.
Sec 305. Transfer of Functions and Savings Provisions.
This section provides technical and administrative rules to
transfer functions, and to govern the transition from the
Office of Juvenile Justice and Delinquency Prevention to
the Office of Juvenile Crime Control and Prevention.

Subtitle B Accountability for Juvenile Offenders and Public Protection
Incentive Grants

Sec. 321 Block Grant Program. Accountability Block Grant:
This section establishes an incentive block grant program for
States, authorized at $450 million for each of the next five
fiscal years, as well as a separate $50 million per year
grant program for the upgrade and enhancement of juvenile
criminal records. The incentive block grants would fund a
variety of programs, such as constructing juvenile offender
detention facilities, implementing graduated sanctions
programs; fingerprinting or conducting DNA tests on juvenile
offenders; establishing record-keeping ability; establishing
SHOCAP programs; enforcing truancy laws; and various
prevention programs including after-school youth activities,
antigang initiatives, literacy programs, and job training
programs. Indian tribes receive separate grants under this
section.
State receipt of the incentive grants would be conditioned
on the adoption of three core accountability policies: the
establishment of graduated sanctions to ensure appropriate
correction of juvenile offenders, drug testing juvenile
offenders upon arrest in appropriate cases; and recognition
of victims rights and needs in the juvenile justice system.
Fifty percent of the funds under the grant program are
designated for implementing graduated sanctions or increasing
juvenile detention space if needed by the State. Federal the
remaining fifty percent can be used for any authorized grant
purpose. Detention space construction projects must be funded
by not less than fifty percent State or local (i.e.,
nonfederal grant) money.

[[Page S755]]

The block grant includes a pass-through requirement
intended to provide a formula for local funding that reflects
the needs and responsibilities of state and local levels of
government. Seventy percent of the funds received by the
State under this block grant must be passed through to the
local level, unless the state organizes its juvenile justice
system exclusively on the State level.
Juvenile Records Grants: Criminal and juvenile record
improvement grants for the States are authorized to encourage
states to treat the records of juveniles who commit and are
adjudicated delinquent for the felonies of murder, armed
robbery, and sexual assault be treated the same as adult
criminal records for the same offenses in the state, and to
treat records of juveniles who commit any other felony be
treated, for criminal justice purposes only, the same as
adult criminal records for the same offenses. Such records
would be available interstate within the NCIC system.
Sec. 322 Pilot Program to Promote Replication of Recent
Successful Juvenile Crime Reduction Strategies. This section
authorizes the Attorney General to fund pilot programs to
replicate the successful juvenile crime reduction program
utilized by Boston, Massachusetts. Pilot program grant
recipients would adopt a juvenile crime reduction strategy
involving close collaboration among Federal, State, and local
law enforcement authorities, and including religious
affiliated or fraternal organizations, school officials,
social service agencies, and parent or local grass roots
organizations. Emphasis would be placed on initiating
effective crime prevention programs and tracing firearms
seized from crime scenes or offenders in an effort to
identify illegal gun traffickers who are supplying weapons to
gangs and other criminal enterprises
Sec. 323 Repeal of Unnecessary and Duplicative Programs.
This section repeals duplicative and wasteful programs
enacted as a part of the 1994 crime law, including the Ounce
of Prevention Council, the Model Intensive Grant program, the
Local Partnership Act, the National Community Economic
Partnership, the Urban Recreation and At-Risk Youth Program,
and the Family Unity Demonstration Project.
Sec. 324 Extension of Violent Crime Reduction Trust Fund.
This section extends the Violent Crime Reduction Trust Fund,
established in the 1994 omnibus crime law, to fund programs
authorized by this act.
Sec. 325 Reimbursement of States for the Costs of
Incarcerating Juvenile Aliens. This section adds juvenile
aliens to the State Criminal Alien Assistance Program, which
provides reimbursement to the States for the costs of
incarcerating criminal aliens.
Sec. 326 Sense of Congress. This section provides the
sense of Congress that States should enact legislation to
provide that if an offense that would be a capital offense if
committed by an adult is committed by a juvenile between the
ages of 10 and 14, the juvenile could, with judicial
approval, be tried and punished as an adult, provided the
death penalty would not be available in such cases.

Subtitle C--Alternative Education and Delinquency Prevention

Sec. 331 Alternative Education. This section amends the
Elementary and Secondary Education Act (ESEA) to provide
demonstration grants to state and local education agencies
for alternative education in appropriate settings for
disruptive or delinquent students, to improve the academic
and social performance of these students and to improve the
safety and learning environment of regular classrooms.
Certain matching amounts required under this program could
be made from amounts available to the State or local
governments under the JJDPA. Appropriations under the ESEA
of $15 million per year for four years are authorized.

Title IV--Miscellaneous Provisions

Subtitle A--General Provisions

Sec. 401 Prohibition on Firearms Possession by Violent
Juvenile Offenders. This section extends the ban on firearm
ownership by certain felons to persons who, as juveniles, are
adjudicated delinquent for an offense which would be a
serious violent felony as defined in 18 U.S.C.
3559(c)(2)(F)(i) (the federal three strikes statute), were
the offense committed by an adult. The ban is prospective,
applying only to delinquent acts committed after records of
such offenses are routinely available within the National
Instant Check System instituted pursuant to the Brady Law.

Subtitle B--Jail-Based Substance Abuse

Sec. 421 Jail-Based Substance Abuse Treatment Program.
This section provides that 10 percent of grants to States for
drug treatment in prisons (RSAT grants) should be directed to
qualified treatment programs in jails; under current law,
these funds are limited to prison treatment. This section
also allows RSAT grants to be used to provide post-
incarceration substance abuse treatment for former inmates if
the Governor certifies to the U.S. Attorney General that the
State is providing, and will continue to provide, an adequate
level of treatment services to incarcerated inmates.
____

When the Fabric Is Rent

(By Patricia Cornwell)

There was a saying in the morgue during those long six
years I worked there. When a person is touched by violence,
the fabric of civility is forever rent, or ripped or
breached, whatever word is most graphic to you.
Our country is the most violent one in the free world, and
as far as I'm concerned, we are becoming increasingly
incompetent in preventing and prosecuting cruel crimes that
we foolishly think happen only to others. There was another
saying in the morgue. The one thing every dead person had in
common in that place was he never thought he'd end up there.
He never imagined his name would be penned in black ink in
the big black book that is ominously omnipresent on a counter
top in the autopsy suite.
I have seen hundreds, maybe close to a thousand dead bodies
by now, many of them ruined by another person's hands. I
return to the morgue at least two or three times a year to
painfully remind myself that what I'm writing about is awful
and final and real.
I suffer from nightmares and don't remember the last time I
had a pleasant dream. I have very strong emotional responses
to crimes that have nothing to do with me, such as Versace's
murder, and more recently, the random shooting deaths of
Capitol Police Agent John Gibson and Officer Jacob Chestnut.
I can't read sad, scary or violent books. I watched only half
of ``Titanic'' because I could not bear its sadness. I
stormed out of Ann Rice's ``Interview With A Vampire,'' so
furious my hands were shaking because the movie is such an
outrageous trivialization and celebration of sexual violence.
For me the suffering, the blood, the deaths are real.
I'd like to confront Ann Rice with bitemarks and other
sadistic wounds that are not special effects. I'd like to
sentence Oliver Stone to a month in the morgue, make him sit
in the cooler for a while and see what an audience of victims
has to say about his films. I'd like O.J. Simpson to have
total recall and suffer, go broke, be ostracized, never be
allowed on a golf course again. I was in a pub in London when
that verdict was read. I'll never forget the amazed faces of
a suddenly mute group of beer-drinking Brits, or the shame my
friends and I felt because in America it is absolutely true.
Justice is blind.
Justice has stumbled off the road of truth and fallen
headlong into a thicket of subjective verdicts where evidence
doesn't count and plea bargains that are such a bargain they
are fire sales. I've begun to fear that the consequences and
punishment of violent crime have become some sort of mindless
multiple choice, a ``Let's Make A Deal,'' a ``Let's microwave
the popcorn and watch Court TV.''
I have been asked to tell you what my fictional character
Dr. Scarpetta would do if she were the crime czar or
Virginia, of America. Since she and I share the same opinions
and views, I am stepping out from behind my curtain of
imagined deeds and characters and telling you what I feel and
think.
It startles me to realize that at age 42, I have spent
almost half my life studying crime, of living and working in
it's pitifully cold, smelly, ugly environment. I am often
asked why people cheat, rob, stalk, slander, maim and murder.
How can anybody enjoy causing another human being or any
living creature destruction and pain? I will tell you in
three words: Abuse of power. Everything in life is about the
power we appropriate for good or destruction, and the
ultimate overpowering of a life is to make it suffer and end.
This includes children who put on camouflage and get into
the family guns. We don't want to believe that 12, 13, 16
year old youths are unredeemable. Most of them aren't. But
it's time we face that some of them have transgressed beyond
forgiveness, certainly beyond trust. Not all victims I have
seen pass through the morgue were savaged by adults. The
creative cruelty of some young killers is the worst of the
worst, images of what they did to their victims ones I wish I
could delete.
About a year ago, I began researching juvenile crime for
the follow-up of ``Hornet's Next'' (Southern Cross, January,
'99) and my tenth Scarpetta book (unfinished and untitled
yet). This was a territory I had yet to explore. I was
inspired by the depressing fact that in the last ten years,
shootings, hold-ups at ATM's, and premeditated murders
committed by juveniles have risen 160 percent. As I ventured
into my eleventh and twelfth novels, I wondered what my
crusading characters would do with violent children.
So I spent months in Raleigh watching members of the
Governor's Commission on Juvenile Crime and Justice debate
and rewrite their juvenile crime laws, as Virginia did in
1995 under the leadership of Jim Gilmore. I quizzed Senator
Orrin Hatch about his youth violence bill, S. 10, a federal
approach to reforming a juvenile justice system that is
failing our society. I toured detention homes in Richmond and
elsewhere. I sat in on juvenile court cases and talked to
inmates who were juveniles when they began their lives of
crime.
While it is true that many violent juveniles have abuse,
neglect, and the absence of values in their homes, I maintain
my belief that all people should be held accountable for
their actions. Our first priority should be to keep our
communities safe. We must remove violent people from our
midst, no matter their age. As Marcia Morey, executive
director of North Carolina's juvenile crime commission,
constantly preaches, ``We must stop the hemorrhage
first.''
When the trigger is pulled, when the knife is plunged, kids
aren't kids anymore. We should not shield and give excuses
and probation to violent juveniles who, odds are, will harm
or kill again if they are returned to our neighborhoods and
schools. We should

[[Page S756]]

not treat young violent offenders with sealed lips and
exclusive proceedings.
``The secrecy and confidentiality of our system have hurt
us,'' says Richmond Juvenile and Domestic Relations District
Court Judge Kimberly O'Donnell. ``What people can't see and
hear is often difficult for them to understand.''
Virginia has opened its courtrooms to the public, and Judge
O'Donnell encourages people to sit in hers and see for
themselves those juveniles who are remorseless and those who
can be saved. Most juveniles who end up in court are not
repeat offenders. But for that small number who threaten us
most, I advocate hard, non-negotiable judgment. Most of what
I would like to see is already being done in Virginia. But we
need juvenile justice reform nationally, a system that is
sensible and consistent from state to state.
As it is now, if a juvenile commits a felony in Virginia,
when he turns 18 his record is not expunged and will follow
him for the rest of his days. But were he to commit the same
felony in North Carolina, at 16 he'll be released from a
correctional facility with no record of any crime he
committed in that state. Let's say he's back on the street
and returns to Virginia. Now he's a juvenile again, and
police, prosecutors, judges or juries will never know what he
did in North Carolina.
If he moves to yet another state where the legal age is 21,
he can commit felonies for three or four more years and have
no record of them, either. Maybe by then he's committed
fifteen felonies but is only credited with the one he
committed in Virginia. Maybe when he becomes an adult and is
violent again, he gets a light sentence or even probation,
since it appears he's committed only one felony in his life
instead of fifteen. He'll be back among us soon enough. Maybe
his next victim will be you.
If national juvenile justice reform were up to me, I'd be
strict. I would not be popular with extreme child advocates.
If I had my way, it would be routine that when any juvenile
commits a violent crime, his name and personal life are
publicized. Records of juveniles who commit felonies should
not be expunged when the individual becomes an adult. Mug
shots, fingerprints and the DNA of violent juveniles should,
at the very least, be available to police, prosecutors, and
schools, and if they young violent offender has an extensive
record and commits another crime, plea bargaining should be
limited or at least informed.
Juveniles who rape, murder or commit other heinous acts
should be tried as adults, but judges should have the
discretionary power to decide when this is merited. I want to
see more court-ordered restitution and mediation. Let's turn
off the TV's in correctional centers and force assailants,
robbers, thieves to work to pay back what they've destroyed
and taken, as much as that is possible. Confront them with
their victims, face to face. Perhaps a juvenile might realize
the awful deed he's done if his victim is suddenly a person
with feelings, loved ones, scars, a name.
Prevention is a more popular word than punishment. But the
solution to what's happening in our society, particularly to
our youths, is simpler and infinitely harder than any
federally or privately funded program. All of us live
in neighborhoods. Unless you are in solitary confinement
or a coma, you are aware of others around you. Quite
likely you are exposed to children who are sad, lost,
ignored, neglected or abused. Try to help. Do it in
person.
I remember my first few years in Richmond when I was living
at Union Theological Seminary, where my former husband was a
student and I was a struggling, somewhat failed writer.
Charlie and I spent five years in a seminary apartment
complex where there was a little boy who enjoyed throwing a
tennis ball against the building in a staccato that was
torture to me.
I was working on novels nobody wanted and every time that
ball thunked against brick, I lost my train of thought. I'd
popped out of my chair and fly outside to order the kid to
stop, but somehow he was always gone without a trace, silence
restored for an hour or two. One day I caught him. I was
about to reprimand him when I saw the fear and loneliness in
his eyes.
``What's your name?'' I asked.
``Eddie,'' he said.
``How old are you?''
``Ten.''
``It's not a good idea to throw a ball against the
building. It makes it hard for some of us to work.''
``I know.'' He shrugged.
``If you know, then why do you do it?''
``Because I have no one to play catch with me,'' he
replied.
My memory lit up with acts of kindness when I was a lonely
child living in the small town of Montreat, North Carolina.
Adult neighbors had taken time to play tennis with me. They
had invited me, the only girl in town, to play baseball or
touch football with the boys.
Billy Graham's wife, Ruth, used to stop her car to see how
I was or if I needed a ride somewhere. Years later, she
befriended me when I was a very confused teenager who felt
rather worthless. Were it not for her kindness and
encouragement, I doubt I would be writing this editorial.
Maybe I wouldn't have amounted to much. Maybe I would have
gotten into serious trouble. Maybe I'd be dead.
Eddie and I started playing catch. I gave him tennis
lessons and probably ruined his backhand for life. He told me
all about himself and amused me with his stories. We became
pals. He never threw a tennis ball against the building
again.
We must protect ourselves from all people who have proven
to be dangerous. But we should never abandon those who can be
helped or are at least are worthy of the effort. If you save
or change one life, you have added something priceless to
this world. You have left it better than you found it.
______

By Mr. GRASSLEY (for himself and Mr. Breaux):
S. 255. A bill to combat waste, fraud, and abuse in payments for home
health services provided under the Medicare program, and to improve the
quality of those home health services; read twice.

HOME HEALTH INTEGRITY PRESERVATION ACT OF 1999

Mr. GRASSLEY. Mr. President, earlier today, I introduced the Home
Health Integrity Preservation Act of 1999. I am pleased that Senator
Breaux cosponsored this bill, as he did when we introduced it in the
105th Congress. This legislation will be an important tool in combating
the waste, fraud and abuse that has threatened the integrity of the
Medicare home health benefit.
Although the majority of home health agencies are honest, legitimate,
businesses, it is clear that there have been unscrupulous providers. In
July 1997, the Senate Special Committee on Aging, which I chair, held a
hearing on this topic. The hearing exposed serious rip-offs of the
Medicare trust fund, and highlighted areas that need more stringent
oversight.
In response to the hearing, Senator Breaux and I followed up with a
roundtable discussion on home health fraud. The roundtable brought
together key players with a variety of perspectives. Participants
included law enforcement, the Administration, and the home health
industry.
The roundtable yielded a number of proposals which were shaped into
draft legislation and circulated to a wide variety of stakeholders. In
response to comments, the draft was changed to address legitimate
concerns that were raised. The result is a balanced piece of
legislation that includes important safeguards against fraud and abuse
of the system, but does not stifle the growth of legitimate providers.
The Home Health Integrity Preservation Act of 1999 would do the
following:
It would heighten scrutiny of new home health agencies before they
enter the Medicare program, and during their early years of Medicare
participation.
It would improve standards and screening for home health agencies,
administrators and employees.
It would require audits of home health agencies whose claims exhibit
unusual features that may indicate problems, and improve HCFA's ability
to identify such features.
It would require agencies to adopt and implement fraud and abuse
compliance programs.
It would increase scrutiny of branch offices, business entities
related to home health agencies, and changes in operations.
It would make more information on particular home health agencies
available to beneficiaries.
It would create an interagency Home Health Integrity Task Force, led
by the Office of the Inspector General of Health and Human Services.
It would reform bankruptcy rules to make it harder for all Medicare
providers, not just home health agencies, to avoid penalties and
repayment obligations by declaring bankruptcy.
This legislation is an important step in ensuring that seniors
maintain access to high quality home care services rendered by
reputable providers. I urge my colleagues to join me in this effort by
cosponsoring this important legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 255

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Home
Health Integrity Preservation Act of 1999''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Additional conditions of participation for home health
agencies.
Sec. 3. Surveyor training in reimbursement and coverage policies.

[[Page S757]]

Sec. 4. Surveys and reviews.
Sec. 5. Prior patient load.
Sec. 6. Establishment of standards and procedures to improve quality of
services.
Sec. 7. Notification of availability of a home health agency's most
recent survey as part of discharge planning process.
Sec. 8. Home health integrity task force.
Sec. 9. Application of certain provisions of the bankruptcy code.
Sec. 10. Study and report to Congress.
Sec. 11. Effective date.

SEC. 2. ADDITIONAL CONDITIONS OF PARTICIPATION FOR HOME
HEALTH AGENCIES.

(a) Qualifications of Managing Employees.--Section 1891(a)
of the Social Security Act (42 U.S.C. 1395bbb(a)) is amended
by adding at the end the following:
``(7) The agency shall have--
``(A) sufficient knowledge, as attested by the managing
employees (as defined in section 1126(b)) of the agency
(pursuant to subsection (c)(2)(C)(iv)(II)) using standards
established by the Secretary, of the requirements for
reimbursement under this title, coverage criteria and claims
procedures, and the civil and criminal penalties for
noncompliance with such requirements; and
``(B) managing employees with sufficient prior education or
work experience, according to standards determined by the
Secretary, in the delivery of health care.''.
(b) Compliance Program.--Section 1891(a) of the Social
Security Act (42 U.S.C. 1395bbb(a)) (as amended by subsection
(a)) is amended by adding at the end the following:
``(8) The agency has developed and implemented a fraud and
abuse compliance program.''.
(c) Availability of Survey.--Section 1891(a) of the Social
Security Act (42 U.S.C. 1395bbb(a)) (as amended by subsection
(b)) is amended by adding at the end the following:
``(9) The agency, before the agency provides any home
health services to a beneficiary, makes available to the
beneficiary or the representative of the beneficiary a
summary of the pertinent findings (including a list of any
deficiencies) of the most recent survey of the agency
relating to the compliance of such agency. Such summary shall
be provided in a standardized format and may, at the
discretion of the Secretary, also include other information
regarding the agency's operations that are of potential
interest to beneficiaries, such as the number of patients
served by the agency.''.
(d) Notice of New Home Health Service, New Branch Office,
and New Joint Venture.--Section 1891(a)(2) of the Social
Security Act (42 U.S.C. 1395bbb(a)(2)) is amended to read as
follows:
``(2)(A) The agency notifies the agency's fiscal
intermediary and the State entity responsible for the
licensing or certification of the agency--
``(i) of a change in the persons with an ownership or
control interest (as defined in section 1124(a)(3)) in the
agency,
``(ii) of a change in the persons who are officers,
directors, agents, or managing employees (as defined in
section 1126(b)) of the agency,
``(iii) of a change in the corporation, association, or
other company responsible for the management of the agency,
``(iv) that the agency is providing a category of skilled
service that it was not providing at the time of the agency's
most recent standard survey,
``(v) that the agency is operating a new branch office that
was not in operation at the time of the agency's most recent
standard survey, and
``(vi) that the agency is involved in a new joint venture
with other health care providers or other business entities.
``(B) The notice required under subparagraph (A) shall be
provided--
``(i) for a change described in clauses (i), (ii), and
(iii) of such subparagraph, within 30 calendar days of the
time of the change and shall include the identity of each new
person or company described in the previous sentence,
``(ii) for a change described in clause (iv) of such
subparagraph, within 30 calendar days of the time the agency
begins providing the new service and shall include a
description of the service,
``(iii) for a change described in clause (v) of such
subparagraph, within 30 calendar days of the time the new
branch office begins operations and shall include the
location of the office and a description of the services that
are being provided at the office, and
``(iv) for a change described in clause (vi) of such
subparagraph, within 30 calendar days of the time the agency
enters into the joint venture agreement and shall include a
description of the joint venture and the participants in the
joint venture.''.

SEC. 3. SURVEYOR TRAINING IN REIMBURSEMENT AND COVERAGE
POLICIES.

Section 1891(d)(3) of the Social Security Act (42 U.S.C.
1395bbb(d)(3)) is amended--
(1) by striking ``relating to the performance'' and
inserting ``relating to--
``(A) the performance'';
(2) by striking the period at the end and inserting ``;
and''; and
(3) by adding at the end the following:
``(B) requirements for reimbursement and coverage of
services under this title.''.

SEC. 4. SURVEYS AND REVIEWS.

(a) Additional Requirements for Survey.--Section
1891(c)(2)(C) of the Social Security Act (42 U.S.C.
1395bbb(c)(2)(C)) is amended--
(1) in clause (i)(I)--
(A) by striking ``purpose of evaluating'' and inserting
``purpose of--
``(aa) evaluating''; and
(B) by adding at the end the following:
``(bb) evaluating whether the individuals are homebound for
purposes of qualifying for receipt of benefits for home
health services under this title; and'';
(2) in clause (ii), by striking ``and'' at the end;
(3) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(iv) shall include--
``(I) an assessment of whether the agency is in compliance
with all of the conditions of participation and requirements
specified in or pursuant to section 1861(o), this section,
and this title;
``(II) an assessment that the managing employees (as
defined in section 1126(b)) of the agency have attested in
writing to having sufficient knowledge, as determined by the
Secretary, of the requirements for reimbursement under this
title, coverage criteria and claims procedures, and the civil
and criminal penalties for noncompliance with such
requirements; and
``(III) a review of the services provided by subcontractors
of the agency to ensure that such services are being provided
in a manner consistent with the requirements of this
title.''.
(b) Additional Events Triggering a Survey.--Section
1891(c)(2)(B) of the Social Security Act (42 U.S.C.
1395bbb(c)(2)(B)) is amended--
(1) by striking ``and'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting a comma; and
(3) by adding at the end the following:
``(iii) shall be conducted not less than annually for the
first 2 years after the initial standard survey of the
agency,
``(iv) after the agency's first 2 years of participation
under this title, shall be conducted within 90 calendar days
of the date that the agency notifies the Secretary that it is
providing a category of skilled service that the agency was
not providing at the time of the agency's most recent
standard survey,
``(v) if the agency is operating a new branch office that
was not in operation at the time of the agency's most recent
standard survey, shall be conducted within the 12-month
period following the date that the new branch office began
operations to ensure that such office is providing quality
care and that it is appropriately classified as a branch
office, and shall include direct scrutiny of the operations
of the branch office, and
``(vi) shall be conducted on randomly selected agencies on
an occasional basis, with the number of such surveys to be
determined by the Secretary.''.
(c) Review by Fiscal Intermediary.--Section 1816 of the
Social Security Act (42 U.S.C. 1395h) is amended by adding at
the end the following:
``(m) An agreement with an agency or organization under
this section shall require that the agency or organization
conduct a review of the overall business structure of a home
health agency submitting a claim for reimbursement for home
health services, including any related organizations of the
home health agency.''.

SEC. 5. PRIOR PATIENT LOAD.

Section 1891 of the Social Security Act (42 U.S.C. 1395bbb)
is amended by adding at the end the following:
``(h) Prior Patient Load.--
``(1) In general.--The Secretary shall not enter into an
agreement for the first time with a home health agency to
provide items and services under this title unless the
Secretary determines that, before the date the agreement is
entered into, the agency--
``(A) had been in operation for at least 60 calendar days;
and
``(B) had at least 10 patients during that period of prior
operation.
``(2) Exceptions.--
``(A) Beneficiary access.--If the Secretary determines
appropriate, the Secretary may waive the requirements of
paragraph (1) in order to establish or maintain beneficiary
access to home health services in an area.
``(B) Change of ownership.--The requirements of paragraph
(1) shall not apply to a home health agency at the time of a
change in ownership of such agency.''.

SEC. 6. ESTABLISHMENT OF STANDARDS AND PROCEDURES TO IMPROVE
QUALITY OF SERVICES.

(a) In General.--Section 1891 of the Social Security Act
(42 U.S.C. 1395bbb) (as amended by section 5) is amended by
adding at the end the following:
``(i) Establishment of Standards and Procedures.--
``(1) Screening of employees.--The Secretary shall
establish procedures to improve the background screening
performed by a home health agency on individuals that the
agency is considering hiring as home health aides (as defined
in subsection (a)(3)(E)) and licensed health professionals
(as defined in subsection (a)(3)(F)).
``(2) Cost reports.--The Secretary shall establish
additional procedures regarding the requirement for
attestation of cost reports to ensure greater accountability
on the part of a home health agency and its managing
employees (as defined in section 1126(b)) for the accuracy of
the information provided to the Secretary in any such cost
reports.
``(3) Monitoring agency after extended survey.--The
Secretary shall establish procedures to ensure that a home
health agency

[[Page S758]]

that is subject to an extended (or partial extended) survey
is closely monitored from the period immediately following
the extended survey through the agency's subsequent standard
survey to ensure that the agency is in compliance with all
the conditions of participation and requirements specified in
or pursuant to section 1861(o), this section, and this title.
``(4) Additional audits.--
``(A) In general.--
``(i) Standards.--The Secretary shall establish objective
standards regarding the determination of--

``(I) whether an agency is a home health agency described
in subparagraph (B); and
``(II) the circumstances that trigger an audit for a home
health agency described in subparagraph (B), and the content
of such an audit.

``(ii) Information.--In establishing standards under clause
(i), the Secretary shall ensure that the individuals
performing the audits under this section are provided with
the necessary information, including information from
intermediaries, carriers, and law enforcement sources, in
order to determine if a particular home health agency is an
agency described in subparagraph (B) and whether the
circumstances triggering an audit for such an agency has
occurred.
``(B) Agency described.--A home health agency is described
in this subparagraph if it is an agency that has--
``(i) experienced unusually rapid growth as compared to
other home health agencies in the area and in the country;
``(ii) had unusually high utilization patterns as compared
to other home health agencies in the area and in the country;
``(iii) unusually high costs per patient as compared to
other home health agencies in the area and in the country;
``(iv) unusually high levels of overpayment or coverage
denials as compared to other home health agencies in the area
and in the country; or
``(v) operations that otherwise raise concerns such that
the Secretary determines that an audit is appropriate.
``(5) Branch offices.--
``(A) Surveys.--The Secretary shall establish standards for
periodic surveys of branch offices of a home health agency in
order to assess whether the branch offices meet the
Secretary's national criteria for branch office designation
and for quality of care. Such surveys shall include home
visits to beneficiaries served by the branch office (but only
with the consent of the beneficiary).
``(B) Uniform national definition.--The Secretary shall
establish a uniform national definition of a branch office of
a home health agency.
``(6) Certain qualifications of managing employees.--The
Secretary shall establish standards regarding the knowledge
and prior education or work experience that a managing
employee (as defined in section 1126(b)) of an agency must
possess in order to comply with the requirements described in
subsection (a)(7).
``(7) Claims processing.--
``(A) In general.--The Secretary shall establish standards
to improve and strengthen the procedures by which claims for
reimbursement by home health agencies are identified as being
fraudulent, wasteful, or abusive.
``(B) Procedures.--The standards established by the
Secretary pursuant to subparagraph (A) shall include, to the
extent practicable, standards for a minimum number of--
``(i) intensive focused medical reviews of the services
provided to beneficiaries by an agency;
``(ii) interviews with beneficiaries, employees of the
agency, and other individuals providing services on behalf of
the agency; and
``(iii) random spot checks of visits to a beneficiary's
home by employees of the agency (but only with the consent of
the beneficiary).
``(C) Report to congress.--Not later than 90 days after the
date of enactment of the Home Health Integrity Preservation
Act of 1999, the Secretary shall submit a report to Congress
containing a detailed description of--
``(i) the current levels of activity by the Secretary with
regard to the reviews, interviews, and spot checks described
in subparagraph (B); and
``(ii) the Secretary's plans to increase those levels
pursuant to the procedures described in subparagraphs (A) and
(B).
``(8) Expansion of financial statement.--The Secretary
shall establish procedures to expand the financial statement
audit process to include compliance and integrity reviews.''.
(b) Effective Date.--By not later than 180 calendar days
after the date of enactment of this Act, the Secretary shall
establish the standards and procedures described in
paragraphs (1) through (8) of section 1891(i) of the Social
Security Act (42 U.S.C. 1395bbb(i)) (as added by subsection
(a)) by regulation or other sufficient means.

SEC. 7. NOTIFICATION OF AVAILABILITY OF A HOME HEALTH
AGENCY'S MOST RECENT SURVEY AS PART OF
DISCHARGE PLANNING PROCESS.

Section 1861(ee)(2)(D) of the Social Security Act (42
U.S.C. 1395x(ee)(2)(D)) (as amended by section 4321(a) of the
Balanced Budget Act of 1997) is amended--
(1) by striking ``including the availability'' and
inserting ``including--
``(i) the availability''; and
(2) by inserting before the period the following: ``; and
``(ii) the availability of (and procedures for obtaining
from a home health agency) a summary document described in
section 1891(a)(9)''.

SEC. 8. HOME HEALTH INTEGRITY TASK FORCE.

(a) Establishment.--The Secretary of Health and Human
Services (in this section referred to as the ``Secretary'')
shall establish within the Office of the Inspector General of
the Department of Health and Human Services a home health
integrity task force (in this section referred to as the
``Task Force'').
(b) Director.--The Inspector General of the Department of
Health and Human Services shall appoint the Director of the
Task Force.
(c) Duties.--The Task Force shall target, investigate, and
pursue any available civil or criminal actions against
individuals who organize, direct, finance, or are otherwise
engaged in fraud in the provision of home health services (as
defined in section 1861(m) of the Social Security Act (42
U.S.C. 1395x(m))) under the medicare program under such Act.
(d) Outside Agencies and Entities.--In carrying out the
duties described in subsection (c), the Task Force shall work
in coordination with other Federal, State, and local
agencies, including the Health Care Financing Administration,
and with private entities. All Federal, State, and local
employees and all private entities are encouraged to provide
maximum cooperation to the Task Force.

SEC. 9. APPLICATION OF CERTAIN PROVISIONS OF THE BANKRUPTCY
CODE.

(a) Restricted Applicability of Bankruptcy Stay, Discharge,
and Preferential Transfer Provisions to Certain Medicare
Debts.--Title XI of the Social Security Act (42 U.S.C. 1301
et seq.) is amended by inserting after section 1143 the
following:

``application of certain provisions of the bankruptcy code

``Sec. 1144. (a) Certain Medicare Actions Not Stayed by
Bankruptcy Proceedings.--The commencement or continuation of
any action against a debtor (as defined in subsection (d))
under this title or title XVIII, including any action or
proceeding to exclude or suspend such debtor from program
participation, assess civil monetary penalties, recoup or set
off overpayments, or deny or suspend payment of claims shall
not be subject to a stay under section 362(a) of title 11,
United States Code.
``(b) Certain Medicare Debt Not Dischargeable in
Bankruptcy.--A debt owed to the United States or to a State
by a debtor for an overpayment under title XVIII, or for a
penalty, fine, or assessment under this title or title XVIII,
shall not be dischargeable under any provision of title 11,
United States Code.
``(c) Repayment of Certain Debts Considered Final.--
Payments made to repay a debt to the United States or to a
State by a debtor with respect to items and services
provided, or claims for payment made for such items and
services, under title XVIII (including repayment of an
overpayment), or to pay a penalty, fine, or assessment under
this title or title XVIII, shall be considered final and not
avoidable transfers under section 547 of title 11, United
States Code.
``(d) Debtor Defined.--In this section, the term `debtor'
means a provider of services (as defined in section 1861(u))
that has commenced a case under title 11, United States
Code.''.
(b) Medicare Rules Applicable to Bankruptcy Proceedings of
a Medicare Provider of Services.--Title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.) is amended by adding at
the end the following:

``application of provisions of the bankruptcy code

``Sec. 1897. (a) Use of Medicare Standards and
Procedures.--Notwithstanding any provision of title 11,
United States Code, or any other provision of law, in the
case of claims by a debtor (as defined in section 1144(d))
for payment under this title, the determination of whether
the claim is allowable, and of the amount payable, shall be
made in accordance with the provisions of this title, title
XI, and implementing regulations.
``(b) Notice to Creditor of Bankruptcy Petitioner.--In the
case of a debt owed by a debtor (as so defined) to the United
States with respect to items and services provided, or claims
for payment made, under this title (including a debt arising
from an overpayment or a penalty, fine, or assessment under
title XI or this title), the notices to the creditor of
bankruptcy petitions, proceedings, and relief required under
title 11, United States Code (including under section 342 of
that title and rule 2002(j) of the Federal Rules of
Bankruptcy Procedure), shall be given to the Secretary.
Provision of such notice to a fiscal agent of the Secretary
shall not be considered to satisfy this requirement.
``(c) Turnover of Property to the Bankruptcy Estate.--For
purposes of section 542(b) of title 11, United States Code, a
claim for payment under this title shall not be considered to
be a matured debt payable to the estate of a debtor (as so
defined) until such claim has been allowed by the Secretary
in accordance with procedures established under this
title.''.

SEC. 10. STUDY AND REPORT TO CONGRESS.

(a) Study.--

[[Page S759]]

(1) In general.--The Secretary of Health and Human Services
(in this section referred to as the ``Secretary'') shall
conduct a study on all matters relating to the appropriate
home health services to be provided under the medicare
program under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) to individuals with chronic conditions.
(2) Matters studied.--The matters studied by the Secretary
shall include--
(A) methods to strengthen the role of a physician in
developing a plan of care for a beneficiary receiving home
health benefits under this title; and
(B) the need for an individual or entity (other than the
home health agency or the beneficiary's physician) to have
responsibility for approving the type and quantity of home
health services provided to the beneficiary.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit a report to
Congress on the study conducted under subsection (a). The
Secretary shall include in the report such recommendations
regarding the utilization of home health services under the
medicare program as the Secretary determines to be
appropriate.

SEC. 11. EFFECTIVE DATE.

Except as otherwise provided in this Act, the amendments
made by this Act shall take effect on the expiration of the
date that is 180 calendar days after the date of enactment of
this Act.
______

By Mr. GRASSLEY (for himself, Mr. Breaux, and Mr. Conrad):
S. 256. A bill to amend title XVIII of the Social Security Act to
promote the use of universal product numbers on claims forms submitted
for reimbursement under the Medicare program; read twice.

medicare universal product number act of 1999

Mr. GRASSLEY. Mr. President, on behalf of Senator Breaux and myself,
I am introducing legislation today to require the use of universal
product numbers (UPNs) for all durable medical equipment (DME) Medicare
purchases. A similar bipartisan bill was introduced in the House of
Representatives by Representatives Amo Houghton and Louise Slaughter.
The purpose of this legislation is to improve the Health Care Financing
Administration's (HCFA) ability to track and to appropriately assess
the value of the durable medical equipment it pays for under the
Medicare program. Very simply, our bill will ensure Medicare gets what
it pays for.
According to a report by the General Accounting Office (GAO) and the
Office of Inspector General's review of billing practices for specific
medical supplies, the Medicare program is often paying greater than the
market price for durable medical equipment and Medicare beneficiaries
are not receiving the quality of care they should. HCFA currently does
not require DME suppliers to identify specific products on their
Medicare claims. Therefore it does not know for which products it is
paying. HCFA's billing codes often cover a broad range of products of
various types, qualities and market prices. For example, the GAO found
that one Medicare billing code is used by the industry for more than
200 different urological catheters, with many of these products varying
significantly in price, use, and quality.
Medicare's inability to accurately track and price medical equipment
and supplies it purchases could be remedied with the use of product
specific codes known as ``bar codes'' or ``universal product numbers''
(UPNs). These codes are similar to the codes you see on products you
purchase at the grocery store. Use of such bar codes is already being
required by the Department of Defense and several large private sector
purchasing groups. The industry strongly supports such an initiative as
well. I am submitting several letters of endorsement for the record on
behalf of the National Association for Medical Equipment Services, the
Health Industry Distributors Association, Premier Inc., and a joint
letter from industry groups such as the Health Industry Business
Communications Council, Healthcare EDI Coalition, Health Industry
Purchasing Association, and Invacare Corporation.
This bill represents a common sense approach. It will improve the way
Medicare monitors and reimburses suppliers for medical equipment and
supplies. Patients will receive better care. And the Federal Government
will save money. I ask that my colleagues on both sides of the aisle
support this legislation which I am introducing today with my friend
and colleague, Senator Breaux.
I ask unanimous consent that a copy of the bill and the letters of
endorsement be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 256

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 ``Medicare Universal Product
Number Act of 1999''.

SEC. 2. UNIVERSAL PRODUCT NUMBERS ON CLAIMS FORMS FOR
REIMBURSEMENT UNDER THE MEDICARE PROGRAM.

(a) Accommodation of UPNs on Medicare Claims Forms.--Not
later than February 1, 2001, all claims forms developed or
used by the Secretary of Health and Human Services for
reimbursement under the medicare program under title XVIII of
the Social Security Act (42 U.S.C. 1395 et seq.) shall
accommodate the use of universal product numbers for a UPN
covered item.
(b) Requirement for Payment of Claims.--Title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.) is amended by
adding at the end the following:

``USE OF UNIVERSAL PRODUCT NUMBERS

``Sec. 1897. (a) In General.--No payment shall be made
under this title for any claim for reimbursement for any UPN
covered item unless the claim contains the universal product
number of the UPN covered item.
``(b) Definitions.--In this section:
``(1) UPN covered item.--
``(A) In general.--Except as provided in subparagraph (B),
the term `UPN covered item' means--
``(i) a covered item as that term is defined in section
1834(a)(13);
``(ii) an item described in paragraph (8) or (9) of section
1861(s);
``(iii) an item described in paragraph (5) of section
1861(s); and
``(iv) any other item for which payment is made under this
title that the Secretary determines to be appropriate.
``(B) Exclusion.--The term `UPN covered item' does not
include a customized item for which payment is made under
this title.
``(2) Universal product number.--The term `universal
product number' means a number that is--
``(A) affixed by the manufacturer to each individual UPN
covered item that uniquely identifies the item at each
packaging level; and
``(B) based on commercially acceptable identification
standards such as, but not limited to, standards established
by the Uniform Code Council-International Article Numbering
System or the Health Industry Business Communication
Council.''.
(c) Development and Implementation of Procedures.--
(1) Information included in upn.--The Secretary of Health
and Human Services, in consultation with manufacturers and
entities with appropriate expertise, shall determine the
relevant descriptive information appropriate for inclusion in
a universal product number for a UPN covered item.
(2) Review of procedure.--From the information obtained by
the use of universal product numbers on claims for
reimbursement under the medicare program, the Secretary of
Health and Human Services, in consultation with interested
parties, shall periodically review the UPN covered items
billed under the Health Care Financing Administration Common
Procedure Coding System and adjust such coding system to
ensure that functionally equivalent UPN covered items are
billed and reimbursed under the same codes.
(d) Effective Date.--The amendment made by subsection (b)
shall apply to claims for reimbursement submitted on and
after February 1, 2002.

SEC. 3. STUDY AND REPORTS TO CONGRESS.

(a) Study.--The Secretary of Health and Human Services
shall conduct a study on the results of the implementation of
the provisions in subsections (a) and (c) of section 2 and
the amendment to the Social Security Act in subsection (b) of
that section.
(b) Reports.--
(1) Progress report.--Not later than 6 months after the
date of enactment of this Act, the Secretary of Health and
Human Services shall submit a report to Congress that
contains a detailed description of the progress of the
matters studied pursuant to subsection (a).
(2) Implementation.--Not later than 18 months after the
date of enactment of this Act, and annually thereafter for 3
years, the Secretary of Health and Human Services shall
submit a report to Congress that contains a detailed
description of the results of the study conducted pursuant to
subsection (a), together with the Secretary's recommendations
regarding the use of universal product numbers and the use of
data obtained from the use of such numbers.

SEC. 4. DEFINITIONS.

In this Act:
(1) UPN covered item.--The term ``UPN covered item'' has
the meaning given such term in section 1897(b)(1) of the
Social Security Act (as added by section 2(b)).
(2) Universal product number.--The term ``universal product
number'' has the meaning given such term in section
1897(b)(2) of the Social Security Act (as added by section
2(b)).

[[Page S760]]

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

The are authorized to be appropriated such sums as may be
necessary for the purpose of carrying out the provisions in
subsections (a) and (c) of section 2, section 3, and section
1897 of the Social Security Act (as added by section 2(b)).
____

January 19, 1999.
Hon. Charles Grassley,
Chairman, Special Committee on Aging,
U.S. Senate, Washington, DC.

Hon. John Breaux,
Ranking Minority Member, Special Committee on Aging, U.S.
Senate, Washington, DC.
Dear Senators Grassley and Breaux: We applaud you for
introducing the Medicare Universal Product Number Act, which
will require the inclusion of universal product numbers
(UPNs) on Medicare Part B billings for medical equipment and
supplies that are not customized. UPNs are codes that
uniquely identify an individual medical product; they are
often associated with the bar codes that allow scanners to
process them. These codes are a major enabling factor in our
efforts to minimize fraudulent billings and to automate the
distribution process.
The Department of Defense (DoD) and the Veterans
Administration have already taken a leadership position in
promoting the implementation of the industry standard of
UPNs. As a part of the decision to use commercial medical
product distributors, the DoD has mandated the use of UPNs
for all medical/surgical products delivered to DoD
facilities. The VA is prepared to implement a similar
requirement this year. Most private sector group purchasing
organizations also require the use of UPNs.
We believe that the Medicare Program would also benefit
greatly from the use of UPNs. By cross-referencing each UPN
with the current HCFA Common Procedure Coding System (HCPCS)
and requiring the inclusion of the UPN on each Medicare Part
B claim for medical equipment and supplies, Medicare's
ability to track utilization and combat fraud and abuse would
be greatly enhanced. As UPNs provide a unique, unambiguous
means of identifying medical products, Medicare would have an
exact record of the specific product used by the beneficiary.
For the first time, the Medicare Program could identify
precisely what items are being billed. Unusual trends in
product utilization and claims for ``suspicious'' items would
be easily identifiable. HCPCS alone cannot provide this
information, as many products of varying quality and cost are
included in a single code.
In addition, problems with ``upcoding'' and miscoding could
be greatly reduced through the implementation of UPNs.
Upcoding occurs when Medicare is intentionally billed under a
code that provides a higher reimbursement than the code
corresponding to the item that was furnished to the
beneficiary. Currently, upcoding is difficult to detect
because HCPCS are so inexact. UPNs would correctly identify
the specific medical product, thereby making it harder to
misrepresent the cost and quality of the product. In
addition, by cross-referencing each UPN to the appropriate
HCPCS, legitimate confusion about HCFA's current coding
system would be alleviated. As the General Accounting Office
has reported (GAO/HEHS-98-102), the HCPCS system is
needlessly ambiguous.
We believe that the Medicare Program and medical products
industry would benefit greatly from the use of UPNs. This
standard would not only increase Medicare's understanding of
what it pays for, but also assist in the effective
administration of the Program.
Again, thank you for introducing the Medicare Universal
Product Number Act.
Sincerely,
Health Industry Business Communications Council.
Healthcare EDI Coalition.
Health Industry Distributors Association.
Health Industry Group Purchasing Association.
National Association for Medical Equipment Services.
Invacare Corp.
Premier Inc.
____

National Association for

Medical Equipment Services,

Alexandria, VA, January 12, 1999.
Hon. Charles Grassley,
Hon. John Breaux,
U.S. Senate,
Special Committee on Aging.
Dear Senators Grassley and Breaux: As you know, the
National Association for Medical Equipment Services (NAMES)
was pleased to endorse your bill, The Medicare Universal
Product Number Act of 1997, S. 1362 in the 105th Congress. We
understand you will re-introduce this bill in substantially
the same form in the 106th Congress, and so, in concept,
support that legislation.
Requiring universal product numbers on home medical
equipment for product labeling and billing purposes would
accomplish two key objectives. First, it would improve home
medical equipment inventory control by creating a unique
numbering system that easily permits computerized optical
scanning of product information. Second, it would provide
third-party payers with more information on equipment
characteristics than does the current HCPCS coding system,
thus allowing reimbursement rates to be set more
appropriately.
While equipment manufacturers and retailers would need time
to comply with the bill, we note that S. 1362 provided more
than two years for compliance to be attained. We look forward
to working with you as this bill proceeds through the
legislative process.
Sincerely,

William D. Coughlan, CAE,

President and
Chief Executive Officer.
____

Health Industry

Distributors Association,

Alexandria, VA, January 11, 1999.
Hon. Charles Grassley,
Chairman, Special Committee on Aging,
U.S. Senate, Washington, DC.

Hon. John Breaux,
Ranking Minority Member, Special Committee on Aging, U.S.
Senate, Washington, DC.
Dear Senators Grassley and Breaux: On behalf of the Health
Industry Distributors Association (HIDA), I applaud you for
introducing the Medicare Universal Product Number Act. HIDA
is the national trade association of home care companies and
medical products distribution firms. Created in 1902, HIDA
represents over 700 companies with approximately 2500
locations nationwide. HIDA Members provide value-added
distribution services to virtually every hospital,
physician's office, nursing facility, clinic, and other
health care sites across the country, as well as to a growing
number of home care patients.
HIDA has long supported the use of UPNs for medical
equipment and supplies. By providing a standard, unique
identifier for each product, UPNs supply the information
needed to minimize fraudulent billings and streamline the
health care product distribution process. The Department of
Defense (DoD) has already recognized the many benefits
resulting from the implementation of the industry standard of
UPNs. As a part of their decisions to use commercial medical
product distributors, DoD has mandated the use of UPNs for
all medical/surgical products delivered to DoD facilities.
The Medicare Program could also benefit greatly from the
use of UPNs. By using UPNs, the Medicare system would be able
to correctly identify the specific items they are paying for,
a crucial piece of information that the agency is now
missing. As UPNs provide a unique, unambiguous means of
identifying each product on the market, Medicare would have
an exact record of the specific product used by each
beneficiary. Unusual trends in product utilization and claims
for ``suspicious'' items would be easily identifiable. The
HCFA Common Procedure Coding System (HCPCS) can not provide
this information, because many products of varying quality
and cost are included in a single code.
In addition, problems with ``upcoding'' and miscoding could
be greatly reduced through the implementation of UPNs.
Upcoding occurs when Medicare is intentionally billed under a
code that provides a higher reimbursement than the code
corresponding to the item that was actually furnished to the
beneficiary. Currently, upcoding is difficult to detect
because HCPCS are so inexact. UPNs would correctly identify
the specific medical product, thereby making it harder to
misrepresent the cost and quality of the product. In
addition, by cross-referencing each UPN to the appropriate
HCPCS, legitimate confusion about HCFA's current coding
system would be alleviated. As the General Accounting Office
has reported (GAO/HEHS-98-102), the HCPCS system is
needlessly ambiguous.
HIDA firmly believes that the Medicare Program and the
medical equipment industry would benefit greatly from the use
of UPNs. This standard would not only increase Medicare's
understanding of what it pays for, but also assist in the
effective administration of the Program.
Again, thank you for introducing the Medical Universal
Product Number Act.
Sincerely,
S. Wayne Kay.
____

Premier,

Washington, DC, January 20, 1999.
Hon. Charles Grassley,
Hon. John Breaux,
U.S. Senate, Special Committee on Aging,
Washington, DC.
Dear Senators Grassley and Breaux: On behalf of Premier,
Inc., the nation's largest healthcare alliance, I am pleased
to support the ``Medicare Universal Product Number Act.'' The
bill requires the use of universal product numbers (UPNs) for
all durable medical equipment Medicare purchases by 2002.
Premier represents more than 200 owner hospitals and
hospital systems that own or operate 800 healthcare
institutions and have purchasing affiliations with another
1,100. Premier owners operate hospitals, HMOs and PPOs,
skilled nursing facilities, rehabilitation facilities, home
health agencies, and physician practices. Through
participation in Premier, healthcare leaders can access cost
reduction avenues, delivery system development and
enhancement strategies, technology management, decision
support tools, and a variety of opportunities for networking
and knowledge transfer.
Premier welcomes federal government leadership in requiring
manufacturers to label their products at each unit of
inventory with a universal product number by the year 2002.
The U.S. General Accounting Office (GAO) recommended in a May
1998 report to Congress that HCFA require suppliers include
UPNs on their Medicare claims. This

[[Page S761]]

requirement will not only aid the Medicare program, but also
will help the private sector reduce healthcare costs. A
recent study conducted by Efficient Healthcare Consumer
Response on improving the efficiency of the healthcare supply
chain concluded that $11.6 billion could be saved through
automation and integration of the product information stream
from point of manufacture to point of use across the
industry. UPN is a major component within that potential
remarkable savings stream. Therefore, we believe that UPN
will become as important to the medical industry as other bar
code standards have become to grocery and other retail
industries for many years.
This bill represents a common sense approach to reducing
healhcare costs in the United States. Thank you Senators
Grassley and Breaux for your leadership on this issue and we
look forward to assisting you with your efforts to enact this
legislation into law.
Sincerely,
James L. Scott,
President.
____

Mr. BREAUX. Mr. President, I rise to commend Senator Grassley for his
leadership on the important issue of cutting waste, fraud and abuse in
the Medicare program. As chairman of the National Bipartisan Commission
on the Future of Medicare, I strongly support our legislation that will
save federal dollars by modernizing an outdated and confusing billing
system. The Medicare Universal Product Number Act of 1999 is a
practical solution which will ensure that the Health Care Financing
Administration (HCFA) knows what it is paying for when reimbursing for
durable medical equipment (DME) under the Medicare program.
Currently, HCFA's billing system uses overly broad and sometimes
outdated codes. These codes can cover a wide range of products which
vary in price and quality, making it difficult for HCFA to track and
price medical equipment accurately. By using Universal Product Numbers
(UPNs), which provide a unique, unambiguous means of identifying each
product on the market, HCFA will be able to track utilization more
efficiently.
Because UPNs are unique identifiers, HCFA will be better equipped in
combating fraud against the Medicare program. Currently the system is
vulnerable to a type of fraud called ``upcoding.'' This occurs when
Medicare is billed for a product under an improper code. Perpetrators
of fraud can use improper codes to receive higher reimbursement rates
then those given for the products which they actually provide. By
tracking utilization, made possible by UPNs, HCFA will know what
product is provided to the beneficiary and how much that product costs.
There is widespread support for the use of UPNs in the Medicare
program. A recent GAO report addresses the need to reform Medicare's
billing system. The report found that HCFA ``does not know specifically
what Medicare is paying for when its contractors process claims for''
medical equipment and supplies. The Department of Defense and the
Veterans' Administration have already begun to require UPNs, as do many
private sector purchasing groups. Moreover, the medical products
industry recognizes the value of UPNs and strongly supports this
legislation.
Medicare's current billing system is vulnerable to abuse. This
legislation is a practical approach to help ensure that taxpayer
dollars are protected and spent wisely. I thank Senator Grassley for
his leadership, and I encourage my colleagues to support this important
legislation.
______

By Mr. COCHRAN (for himself, Mr. Inouye, and Mr. Hagel):
S. 257. A bill to state the policy of the United States regarding the
deployment of a missile defense capable of defending the territory of
the United States against limited ballistic missile attack; to the
Committee on Armed Services.

national missile defense act of 1999

Mr. COCHRAN. Mr. President, I am pleased to announce today we are
introducing, again, the National Missile Defense Act of 1999, a bill to
make it the policy of the United States to deploy, as soon as
technologically possible, a system to defend the United States against
limited ballistic missile attack. I am happy to be joined by my friend,
the distinguished Senator from Hawaii, Mr. Inouye, in introducing this
bill. And I am pleased that we have just heard that the Secretary of
Defense has announced that funds will be included in this year's budget
to pay for deployment of the National Missile Defense System,
acknowledging that the threat does exist, or soon will. So the
administration is changing its policy now, faced with this push that
was begun in the last Congress and is culminating now in the
reintroduction of this legislation.
Ballistic missiles are being developed and tested by a growing number
of nations, some of which are hostile to the United States.
Iran has declared itself self-sufficient in missile technology and
expertise. It is building a missile system capable of striking Central
Europe.
Last year, North Korea surprised experts with its test of the Taepo
Dong-1, a three-stage missile which, according to published reports,
may be capable of reaching Alaska. Last July, the Rumsfeld Commission
concluded that the United States may have ``little or no warning'' of
the development of intercontinental ballistic missile capability by a
rogue state.
The United States has no defense against long-range ballistic
missiles, and administration policy had been limited to development of
a missile defense system and deployment only if a threat developed. Now
the threat has become obvious to the administration.
I welcome the announcement this morning by the Secretary of Defense
that the administration is acknowledging the need to proceed with a
program to develop a missile defense system to meet this threat and to
deploy it. The time has come to remove all doubts about the resolve of
the United States on this issue. The National Missile Defense Act of
1999 confirms this resolve as national policy.
Mr. COVERDELL. I thank the Senator from Mississippi and now turn to
the Senator from Nebraska and yield up to 5 minutes to the
distinguished Senator.
The PRESIDING OFFICER. The Senator from Nebraska is recognized.
Mr. HAGEL. Mr. President, I wish to associate myself with the remarks
of my colleagues here this morning. I also wish to commend my friend,
the senior Senator from Mississippi, for reintroducing his defense
initiative. Missile defense is as critical a challenge as this country
faces, not just for the short term, but for the long term, and I have
been a strong proponent of what Senator Cochran is proposing. I wish,
again, to be a cosponsor of that measure.
______

By Mr. McCAIN (for himself, Mr. Levin, and Mr. Robb):
S. 258. A bill to authorize additional rounds of base closures and
realignments under the Defense Base Closure and Realignment Act of 1990
in 2001 and 2003, and for other purposes; to the Committee on Armed
Services.

legislation to authorize two base realignment and closure rounds to
occur in 2001 and 2003

Mr. McCAIN. Mr. President, I rise today to introduce legislation that
authorizes two rounds of U.S. military installation realignment and
closures to occur in 2001 and 2003. I am pleased to have Senator Levin
and Senator Robb as cosponsors of this bill.
Mr. President, we have heard over the last 4 months of the dire
situation of our military forces. We have heard testimony of plunging
readiness, modernization programs that are decades behind schedule, and
quality of life deficiencies that are so great we cannot retain or
recruit the personnel we need. As a result of this realization, there
has been a groundswell of support in Congress for the Armed Forces,
including a number of pay and retirement initiatives and the promise of
a significant increase in defense spending.
All of these proposals are excellent starting points to help re-forge
our military, but we must not forget that much of it will be in vain if
the Department of Defense is obligated to maintain 23 percent excess
capacity in infrastructure. When we actually look for the dollars to
pay for these initiatives, it is unconscionable that some would not
look to the billions of dollars to be saved by base realignment and
closure. Secretary Cohen and the Joint Chiefs of Staff have stated
repeatedly that they desire more opportunities to streamline the
military's infrastructure. We cannot sit idly by and throw money and
ideas at the problem when part of the solution is staring us in the
face.

[[Page S762]]

This proposed legislation offers two significant changes to present
law. First, the process for the first round in 2001 is moved back two
months to ensure there is no conflict of interest with a commission
nominated under one administration but effectively working under the
direction of the follow-on administration. Second, under this
legislation, privatization in-place would be permitted only when
explicitly recommended by the Commission. Additionally, the Secretary
of Defense must consider local government input in preparing his list
of desired base closures.
Total BRAC savings realized from the four previous rounds exceed
total costs to date. The annual net savings for previous rounds will
grow from almost $3 billion last year to $5.6-7.0 billion per year by
2001. These savings are real, they are coming sooner, and they are
estimated to be greater than anticipated.
Mr. President, we can continue to maintain a military infrastructure
that we do not need, or we can provide the necessary funds to ensure
our military can fight and win future wars. Every dollar we spend on
bases we do not need is a dollar we cannot spend on training our
troops, keeping personnel quality of life at an appropriate level,
maintaining force structure, replacing old weapons systems, and
advancing our military technology.
We must finish the job we started by authorizing these two final
rounds of base realignment and closure. I urge my colleagues to join us
in support of this critical bill and to work diligently throughout the
year to put aside local politics for what is clearly in the best
interest of our military forces.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 258

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

SECTION 1. AUTHORITY TO CARRY OUT BASE CLOSURE ROUNDS IN 2001
AND 2003.

(a) Commission Matters.--
(1) Appointment.--Subsection (c)(1) of section 2902 of the
Defense Base Closure and Realignment Act of 1990 (part A of
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is
amended--
(A) in subparagraph (B)--
(i) by striking ``and'' at the end of clause (ii);
(ii) by striking the period at the end of clause (iii) and
inserting a semicolon; and
(iii) by adding at the end the following new clauses (iv)
and (v):
``(iv) by no later than March 1, 2001, in the case of
members of the Commission whose terms will expire at the end
of the first session of the 107th Congress; and
``(v) by no later than January 3, 2003, in the case of
members of the Commission whose terms will expire at the end
of the first session of the 108th Congress.''; and
(B) in subparagraph (C), by striking ``or for 1995 in
clause (iii) of such subparagraph'' and inserting ``, for
1995 in clause (iii) of that subparagraph, for 2001 in clause
(iv) of that subparagraph, or for 2003 in clause (v) of that
subparagraph''.
(2) Meetings.--Subsection (e) of that section is amended by
striking ``and 1995'' and inserting ``1995, 2001, and 2003''.
(3) Staff.--Subsection (i)(6) of that section is amended in
the matter preceding subparagraph (A) by striking ``and
1994'' and inserting ``, 1994, and 2002''.
(4) Funding.--Subsection (k) of that section is amended by
adding at the end the following new paragraph (4):
``(4) If no funds are appropriated to the Commission by the
end of the second session of the 106th Congress for the
activities of the Commission in 2001 or 2003, the Secretary
may transfer to the Commission for purposes of its activities
under this part in either of those years such funds as the
Commission may require to carry out such activities. The
Secretary may transfer funds under the preceding sentence
from any funds available to the Secretary. Funds so
transferred shall remain available to the Commission for such
purposes until expended.''.
(5) Termination.--Subsection (l) of that section is amended
by striking ``December 31, 1995'' and inserting ``December
31, 2003''.
(b) Procedures.--
(1) Force-structure plan.--Subsection (a)(1) of section
2903 of that Act is amended by striking ``and 1996,'' and
inserting ``1996, 2002, and 2004,''.
(2) Selection criteria.--Subsection (b) of such section
2903 is amended--
(A) in paragraph (1), by inserting ``and by no later than
January 28, 2001, for purposes of activities of the
Commission under this part in 2001 and 2003,'' after
``December 31, 1990,''; and
(B) in paragraph (2)(A)--
(i) in the first sentence, by inserting ``and by no later
than March 15, 2001, for purposes of activities of the
Commission under this part in 2001 and 2003,'' after
``February 15, 1991,''; and
(ii) in the second sentence, by inserting ``, or enacted on
or before April 15, 2001, in the case of criteria published
and transmitted under the preceding sentence in 2001'' after
``March 15, 1991''.
(3) Department of defense recommendations.--Subsection (c)
of such section 2903 is amended--
(A) in paragraph (1), by striking ``and March 1, 1995,''
and inserting ``March 1, 1995, May 1, 2001, and March 1,
2003,'';
(B) by redesignating paragraphs (4), (5), and (6) as
paragraphs (5), (6), and (7), respectively;
(C) by inserting after paragraph (3) the following new
paragraph (4):
``(4)(A) In making recommendations to the Commission under
this subsection in any year after 1999, the Secretary shall
consider any notice received from a local government in the
vicinity of a military installation that the government would
approve of the closure or realignment of the installation.
``(B) Notwithstanding the requirement in subparagraph (A),
the Secretary shall make the recommendations referred to in
that subparagraph based on the force-structure plan and final
criteria otherwise applicable to such recommendations under
this section.
``(C) The recommendations made by the Secretary under this
subsection in any year after 1999 shall include a statement
of the result of the consideration of any notice described in
subparagraph (A) that is received with respect to an
installation covered by such recommendations. The statement
shall set forth the reasons for the result.''; and
(D) in paragraph (7), as so redesignated--
(i) in the first sentence, by striking ``paragraph (5)(B)''
and inserting ``paragraph (6)(B)''; and
(ii) in the second sentence, by striking ``24 hours'' and
inserting ``48 hours''.
(4) Commission review and recommendations.--Subsection (d)
of such section 2903 is amended--
(A) in paragraph (2)(A), by inserting ``or by no later than
September 1 in the case of recommendations in 2001,'' after
``pursuant to subsection (c),'';
(B) in paragraph (4), by inserting ``or after September 1
in the case of recommendations in 2001,'' after ``under this
subsection,''; and
(C) in paragraph (5)(B), by inserting ``or by no later than
June 15 in the case of such recommendations in 2001,'' after
``such recommendations,''.
(5) Review by president.--Subsection (e) of such section
2903 is amended--
(A) in paragraph (1), by inserting ``or by no later than
September 15 in the case of recommendations in 2001,'' after
``under subsection (d),'';
(B) in the second sentence of paragraph (3), by inserting
``or by no later than October 15 in the case of 2001,'' after
``the year concerned,''; and
(C) in paragraph (5), by inserting ``or by November 1 in
the case of recommendations in 2001,'' after ``under this
part,''.
(c) Closure and Realignment of Installations.--Section
2904(a) of that Act is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following new
paragraph (3):
``(3) carry out the privatization in place of a military
installation recommended for closure or realignment by the
Commission in each such report after 1999 only if
privatization in place is a method of closure or realignment
of the installation specified in the recommendation of the
Commission in such report and is determined to be the most-
cost effective method of implementation of the
recommendation;''.
(d) Relationship to Other Base Closure Authority.--Section
2909(a) of that Act is amended by striking ``December 31,
1995,'' and inserting ``December 31, 2003,''.
(e) Technical and Clarifying Amendments.--
(1) Commencement of period for notice of interest in
property for homeless.--Section 2905(b)(7)(D)(ii)(I) of that
Act is amended by striking ``that date'' and inserting ``the
date of publication of such determination in a newspaper of
general circulation in the communities in the vicinity of the
installation under subparagraph (B)(i)(IV)''.
(2) Other clarifying amendments.--
(A) That Act is further amended by inserting ``or
realignment'' after ``closure'' each place it appears in the
following provisions:
(i) Section 2905(b)(3).
(ii) Section 2905(b)(4)(B)(ii).
(iii) Section 2905(b)(5).
(iv) Section 2905(b)(7)(B)(iv).
(v) Section 2905(b)(7)(N).
(vi) Section 2910(10)(B).
(B) That Act is further amended by inserting ``or
realigned'' after ``closed'' each place in appears in the
following provisions:
(i) Section 2905(b)(3)(C)(ii).
(ii) Section 2905(b)(3)(D).
(iii) Section 2905(b)(3)(E).
(iv) Section 2905(b)(4)(A).
(v) Section 2905(b)(5)(A).
(vi) Section 2910(9).
(vii) Section 2910(10).
(C) Section 2905(e)(1)(B) of that Act is amended by
inserting ``, or realigned or to be realigned,'' after
``closed or to be closed'.

Mr. LEVIN. Mr. President, I am pleased to once again join my
colleagues from the Armed Services Committee, Senator McCain and
Senator

[[Page S763]]

Robb, in introducing this legislation authorizing the Department of
Defense to close excess, unneeded military bases.
For the past two years, Secretary of Defense Cohen has asked the
Congress to authorize two additional base closure rounds. But Congress
has not acted.
Secretary Cohen and General Shelton, the Chairman of the Joint Chiefs
of Staff, have repeatedly said we need to close more military bases,
and I am confident that they will once again ask us to close more bases
when the President's budget is submitted next month.
The legislation we are introducing today is intended to start the
debate, and I anticipate the administration will make a similar
legislative proposal to the Congress.
This legislation calls for two additional base closure rounds, in
2001 and 2003, that would basically follow the same procedures that
were used in 1991, 1993 and 1995, with two exceptions.
First, the whole process would start and finish two months later in
2001 than it did in previous rounds, to give the new President
sufficient time to nominate commissioners.
Second, under our legislation privatization in place would not be
permitted at closing installations unless the Base Closure Commission
recommends it.
In a November 1998 report, the General Accounting Office listed five
key elements of the base closure process that ``contributed to the
success of prior rounds''. Our legislation retains all of those key
elements. GAO also stated that they ``have not identified any long-term
readiness problems that were related to domestic base realignments and
closures, that ``DOD continues to retain excess capacity'' and that
``substantial savings are expected'' from base closures.
Mr. President, every expert and every study agrees on the basic
facts--the Defense Department has more bases than its needs, and
closing bases saves substantial money in the long run.
The report the Department of Defense provided to the Congress last
April clearly demonstrated these facts. As the Congressional Budget
Office stated in a letter to me last July, ``the report's basic message
is consistent with CBO's own conclusions: past and future BRAC round
will lead to significant savings for DoD.''
Every year we delay another base closure round, we deny the Defense
Department, and the taxpayers, about $1.5 billion in annual savings
that we can never recoup. And every dollar we spend on bases we do not
need is a dollar we cannot spend on things we do need.
Mr. President, I am not going to make any detailed judgments on the
President's defense budget proposal until we see the details, but I am
prepared to support an increase in defense spending if the money is
spent wisely.
However, Congress should not use defense funding increases as an
excuse to avoid tough choices. The addition of new resources cannot be
a substitute for the billions of dollars of savings that would be
generated by a new round of base closures. We cannot justify spending
more for national defense unless we show our own willingness to make
the best use of defense dollars by reducing unneeded defense
infrastructure.
I urge my colleagues to support this legislation.
Mr. ROBB. Mr. President, last year I joined Senators McCain and Levin
in introducing legislation authorizing another base closure round. I
argued then, as I do today, that failing to enact another BRAC round
only makes the Congress look short-sighted and indecisive. I argued
then that if we don't bite the bullet quickly, the cost of excess
infrastructure will continue to drag down the readiness of our forces
today and rob us of the resources so badly needed to modernize our
forces for tomorrow.
For the first time since the late 1970's, military readiness is
suffering significantly. Ships are undermanned, pilots are flying too
many missions, reservists are being asked to leave family and job over
and over. It doesn't take a budget expert to realize what we could do
for the troops with billions in savings from cutting excess
infrastructure.
This year we in the Congress will almost certainly add billions of
dollars to the defense budget. This is a mixed blessing. While these
adds will help resolve problems across the board, from recruiting to
modernization to preparing for the future, they will also undermine any
incentives to better manage the Department of Defense and to eliminate
the wasteful assets and administrative inefficiencies that we the
Congress are so determined to preserve.
BRAC failed in the past for reasons that have much to do with
politics, but little to do with ensuring our every defense dollar is
spent for maintaining and equipping our armed forces for the
battlefields of the next century. Those politics are behind us now. We
must move forward and authorize more BRAC rounds.
Keeping excess military posts open won't bring more firepower to bear
in the next war. Keeping an unneeded R&D lab open won't recruit more
talented young men and women to serve as the foundation for the world's
finest fighting force. Keeping an underutilized training range open
won't buy modern equipment so badly needed to replace systems now often
older than the men and women using them.
Mr. President, I reemphasize a point I've made time and time again in
the past--who suffers from Congressional inaction? In the end, we only
punish those who most need the benefits of infrastructure savings.
First, we punish the Nation's taxpayers when we fail to make the best
use of the resources with which they entrust us. Second, we punish
today's soldiers, sailors, airmen and marines whose readiness depends
on sufficient, reliable resources for equipment, training and
operations through the year. Finally, we punish tomorrow's force as we
continue to mortgage research, development, and modernization of
equipment necessary to keep America strong into the 21st century.
The bill we're introducing calls for a base closure round in 2001 and
another in 2003. Like the provision we offered last year and the year
before that, the bill should answer concerns over the politicization of
future BRAC rounds. Language is included to allow privatization-in-
place at a facility only if the BRAC Commission explicitly recommends
privatization-in-place.
The long-term savings from the first four base closure rounds already
are generating substantial savings--about three billion dollars a year.
Each new round will save another 1.5 billion dollars per year. It is no
surprise that scores of studies and organizations such as the
Quadrennial Defense Review, Defense Restructure Initiative, National
Defense Panel, and Business Executives for National Security have all
concluded that more base closures are crucial to the future of our
Armed Forces.
Mr. President, I urge my colleagues to do what is right for our armed
forces, what is right for the taxpayer, and support this legislation.
______

By Mr. INOUYE:
S. 259. A bill to increase the role of the Secretary of
Transportation in administering section 901 of the Merchant Marine Act,
1936, and for other purposes; to the Committee on Commerce, Science,
and Transportation.

transportation in American vessels of government personnel and certain
cargoes

Mr. INOUYE. Mr. President, the legislation I am introducing today
would centralize the authority to administer our nation's cargo
preference laws in the Department of Transportation. Cargo preference
statutes assure U.S.-flag ships a minimum share of cargoes produced by
U.S. government programs. They play an important role in ensuring our
nation's economic security and the existence of a U.S.-flag merchant
fleet to assist in national security during times of national
emergencies. This tremendous benefit is achieved at a minimal cost.
Under present law, cargo reservation is the only direct support a
majority of the U.S. merchant fleet receives. I would also like to
point out that a cargo preference policy is not unique. Other nations
also provide their merchant fleet preference in carrying cargoes their
governments generate.
The Maritime Administration, which is part of the Department of
Transportation, has been tasked with the difficult duty of monitoring
the administration of and compliance with U.S. cargo preference laws
and regulations by federal agencies with regard to programs generating
ocean-born cargoes.

[[Page S764]]

Major programs monitored include humanitarian aid shipments provided by
the U.S. Department of Agriculture and the U.S. Agency for
International Development, commodities financed by the Export-Import
Bank, foreign military sales, and Department of Defense cargo shipped
by commercial ocean carriers. These are cargoes generated exclusively
by our government.
In the past, compliance by federal agencies with the requirements of
the cargo reservation laws has been chaotic, uneven and varied from
agency to agency. In 1962, President John F. Kennedy, in issuing a
directive to all executive branch departments and agencies, recognized
the importance of our cargo preference policy in fostering a modern,
privately owned, merchant marine capable of serving as a naval and
military auxiliary in time of war or national emergency. At the time,
President Kennedy stated that, ``the achievement of this national
policy is even more essential now because of the worldwide economic and
defense burdens facing the United States.'' Never has this sentiment
been more true than now.
Mr. President, this legislation will merely make certain that federal
agencies adhere to existing cargo preference laws, and give the
Maritime Administration authority to respond to violations with the
proper penalties or sanctions. I ask unanimous consent that the text of
this bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 259

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

SECTION 1. TRANSPORTATION IN AMERICAN VESSELS OF GOVERNMENT
PERSONNEL AND CERTAIN CARGOES.

Section 901(b)(2) of the Merchant Marine Act, 1936 (46
U.S.C. App. 2141 (b)(2)), is amended to read as follows:
``(2)(A) Notwithstanding any other provision of law, the
Secretary of Transportation shall have the sole
responsibility for determining and designating the programs
that are subject to the requirements of this subsection. Each
department or agency that has responsibility for a program
that is designated by the Secretary of Transportation
pursuant to the preceding sentence shall, for the purposes of
this subsection, administer such program pursuant to
regulations promulgated by such Secretary.
``(B) The Secretary of Transportation shall--
``(i) review the administration of the programs referred to
in subparagraph (A);
``(ii) resolve any question concerning the administration
of those programs with respect to this section;
``(iii) provide for penalties and sanctions for violation
of this Act; and
``(iv) on an annual basis, submit a report to Congress
concerning the administration of such programs.''.

SEC. 2. CONFORMING CARGO PREFERENCE YEAR TO FEDERAL FISCAL
YEAR.

Section 901b(c)(2) of the Merchant Marine Act, 1936 (46
U.S.C App. 1241f(c)(2)) is amended by striking ``1986.'' and
inserting ``1986, the 18-month period commencing April 1,
1999, and the 12-month period beginning on the first day of
October in the year 2000 and each year thereafter.''.
______

By Mr. GRASSLEY (for himself, Mr. Daschle, Mr. Craig, Mr.
Brownback, Mr. Sessions, Mr. Ashcroft, and Mr. Kohl):
S. 260. A bill to make chapter 12 of title 1, United States Code,
permanent, and for other purposes; to the Committee on the Judiciary.

safety 2000

Mr. GRASSLEY. Mr. President, I rise today to introduce vitally
important legislation to promote the well-being of America's family
farms by extending chapter 12 of the Bankruptcy Code. This bill, which
is known as ``safety 2000,'' will also make needed changes to chapter
12 which will make it work better for family farmers. I'm pleased that
Senator Daschle is joining with me in this effort to save family farms.
In Iowa, pork prices recently hit an all time low. Pork producers are
facing serious hardship, and we must make sure that those farmers who
need bankruptcy relief to help save their farming operation have
meaningful protections.
Last year, again with the distinguished minority leader, I introduced
legislation to make chapter 12 permanent. That legislation passed the
Senate by unanimous consent. However, the legislation was not enacted
into law. On April 1 of this year, chapter 12 will expire. Mr.
President, we cannot let this happen.
As the only family farmer in the Senate, I feel I have a unique
responsibility to make sure that family farming remains a strong and
vibrant part of American life. For generations, family farms have fed
this country. But farming has always had rough periods.
Allowing chapter 12 to expire will repeat a fatal mistake of the
past. During the great depression, Congress created special bankruptcy
protections for farmers to help them ride out the severe economic
conditions of that tragic era. However, Congress allowed these laws to
lapse in the 1950s. So, when farmers in Iowa confronted the farm crisis
of the mid-1980s, they were left without effective bankruptcy relief.
By passing my legislation, we can prevent the mistakes of the past from
occurring again.
I think it's very important to realize that chapter 12 is not a hand
out or a ``get out of debt free'' card. Farmers are hard-working people
who want the chance to learn their way. In fact, chapter 12 is modeled
on chapter 13, where individuals set up plans to re-pay a portion of
their debts.
By all accounts, chapter 12 has been wildly successful. So many times
in Washington we develop programs and laws with the best of intentions.
But when these programs get to the real world, they don't work well.
chapter 12, on the other hand, has worked exactly as intended.
According to Professor Neil Harl of Iowa State University, 74 percent
of family farmers who filed Chapter 12 bankruptcy are still farming and
61 percent of farmers who went through Chapter 12 believe that Chapter
12 was helpful in getting them back on their feet.

But Chapter 12 can be made even better. ``Safety 2000'' will make
Chapter 12 better. The bill expands the definition of family farmer so
that more farmers can use Chapter 12. Under current law, family farmers
can't use Chapter 12 to save their farms if a farmer has more than $1.5
million in debt. This is too restrictive, and my bill would let farmers
who have up to $3 million in debt use Chapter 12.
``Safety 2000'' also helps farmers to reorganize by keeping the tax
collectors at bay. Under current law, farmers often face a crushing tax
liability if they need to sell livestock or land in order to reorganize
their business affairs. According to Joe Peiffer, a bankruptcy lawyer
from Hiawatha, Iowa, who represents many family farmers, high taxes
have caused farmers to lose their farms. Under the bankruptcy code, the
I.R.S. must be paid in full for any tax liabilities generated during a
bankruptcy reorganization. If the farmer can't pay the I.R.S. in full,
then he can't keep his farm. This isn't sound policy. Why should the
I.R.S. be allowed to veto a farmer's reorganization plan? ``Safety
2000'' takes this power away from the I.R.S. by reducing the priority
of taxes during proceedings. This will free up capital for investment
in the farm, and help farmers stay in the business of farming.
In conclusion, Chapter 12 works well and this legislation will make
it work better. Let's make sure that we keep this safety net for family
farmers in place. I urge my colleagues to think of this bill as a low-
cost insurance policy for an important part of America's economy and
America's heritage.
Mr. KOHL. Mr. President, I rise to join Senator Grassley as a
cosponsor of ``Safeguarding America's Farms Entering the Year 2000.''
This measure would make permanent the bankruptcy code provisions that
protect family farmers in hard times by giving them the ability to hold
on to their farms while they reorganize their finances.
Without prompt action by Congress, the bankruptcy laws for family
farmers, known as Chapter 12, will expire on April 1, 1999. When
Congress first enacted Chapter 12 in 1986 for seven years, we intended
to make Chapter 12 permanent if it proved successful. Already, Chapter
12 has been extended twice, in 1993 and again last year.
Family farmers need this permanent protection because Chapter 12
works. It takes into consideration the unique circumstances faced by
family farmers. It recognizes our special interest in keeping family
farms in the family, where possible. And in practice it pays off--
according to the National Bankruptcy Review Commission, farmers in
Chapter 12 are more likely to successfully reorganize than individuals
filing under parallel chapters.

[[Page S765]]

The continued success of the tens of thousands of family farmers in
Wisconsin--and millions nationwide--is important to our national
interest. But their well-being is too often jeopardized by elements out
of their control. For example, many Wisconsin farmers now are facing
distress due to unusually low prices for hogs, corn and soy beans. The
opportunity to reorganize their business under Chapter 12 may be an
important option in these difficult times. They deserve to know that
this protection will always be available. Thank you.
______

By Mr. SPECTER (for himself, Mr. Rockefeller, Mr. Byrd, Mr.
DeWine, Mr. Hollings, Mr. Santorum, Ms. Mikulski, Mr. Sarbanes,
Mr. Hutchinson, Mr. Durbin, Mr. Kohl, Mr. Sessions, and Mr.
Moynihan):
S. 261. A bill to amend the Trade Act of 1974, and for other
purposes; to the Committee on Finance.

the trade fairness act of 1999

Mr. SPECTER. Mr. President, I have sought recognition today to
introduce legislation to try to deal with a very serious surge of steel
imports into the United States, which is threatening to decimate the
steel industry and take thousands of jobs from American steelworkers in
a way which is patently unfair and in violation of free trade
practices. My bill is entitled the ``Trade Fairness Act of 1999''
because it would bring our laws in line with those established by the
General Agreement on Tarriffs and provide relief to the flood of
foreign steel imports dumped onto the American market.
On Monday, November 30, 1998, Senator Rockefeller and I convened a
hearing of the Senate Steel Caucus to look further into the continued
dumping of foreign steel on the U.S. market and its affect on domestic
producers. At that hearing, Hank Barnette, Chairman and CEO of
Bethlehem Steel, and George Becker, President of the United
Steelworkers of America, testified to the magnitude of the crisis, the
continued loss of high-paying jobs and the alarming lack of capital
investment by the industry over the last several months. They both
expressed frustration at the lack of activity by the Clinton
Administration to respond to illegal dumping of foreign steel.
On October 7, 1998, Senator John D. Rockefeller, Congressman Ralph
Regula and Congressman Jim Oberstar, and I met with representatives of
the Clinton Administration, specifically Treasury Secretary Robert
Rubin, Commerce Secretary William Daley, United States Trade
Representative Ambassador Charlene Barshefsky and National Economic
Council Advisor Gene Sperling, to discuss the steel import issue. At
that meeting, representatives of the Clinton Administration assured us
that they were looking into actions that the Administration could take
to respond to the illegal dumping of foreign steel on the U.S. market
but had yet to make a final decision on their response.
The urgency of this crisis and the failure of the Administration to
take action was evident from testimony presented on September 10, 1998,
where, as Chairman of the Senate Steel Caucus, I joined House Chairman
Regula in convening a joint meeting of the Senate and House Steel
Caucuses to hear from members of the United Steelworkers of America and
executives from a number of the nation's largest steel manufacturers
about the current influx of imported steel into the United States. At
that meeting, I expressed my profound concern regarding the impact on
our steel companies and steelworkers of the current financial crises in
Asia and Russia, which have generated surges in U.S. imports of Asian
and Russian steel.
The United States has become the dumping ground for foreign steel.
Russia has become the world's number one steel exporting nation and
China is now the world's number one steel-producing nation, while
enormous subsidies to foreign steel producers have continued. In fact,
the Commerce Department revealed that Russia, one of the world's least
efficient producers, was selling steel plate in the United States at
more than 50 percent, or $110 per ton, below the constructed cost to
make steel plate. The dumping of this cheap steel on the American
market ultimately costs our steel companies in lost sales and results
in fewer jobs for American workers.
Specifically, the October 1998 import level was the second highest
monthly total ever, with 4.1 million net tons--an increase of 56
percent over October 1997 of 2.6 million net tons. Only August 1998
(4.4 million net tons) surpassed it. The October level, if annualized,
would exceed 49 million net tons, or 48 percent of expected total U.S.
domestic steel shipments for the entire year. Total imports in October
were 35 percent of apparent consumption, up from 23 percent a year
earlier.
Imports of steel from various countries have dramatically increased
when the first six months of 1997 are compared to the first six months
of 1998. The percent increases from four countries are as follows:
Japan, 141 percent; South Africa, 124 percent; South Korea, 96 percent;
Russia, 29 percent.

The following is an example of the layoffs and plant slowdowns since
September, 1998:
Geneva Steel has laid off 460 workers;
U.S. Steel's Philadelphia operations have been reduced by 70 percent;
LTV Steel's plant closure has cost 320 jobs; and,
Weirton Steel has suffered 300 layoffs with 200 additional layoffs
expected by January 1, 1999.
The American Iron and Steel Institute estimates that 5,000
steelworkers, nationwide, have been laid off since September, 1998. An
additional 10,000 U.S. steelworkers' jobs are at risk of imminent
layoffs.
I believe that the growing coalition of steel manufacturers,
steelworkers, and Congress must work together to remedy this import
crisis before it is too late and the U.S. steel industry is forced to
endure an excruciatingly painful economic downturn. The United States
has many of the tools at its disposal to protect our steel industry
from unfair and illegally dumped steel; therefore, I introduced Senate
Concurrent Resolution 121 on September 29, 1998, to call on the
President to take all necessary measures to respond to the surge of
steel imports resulting from the Asian and Russian financial crises. I
am pleased to state that the resolution passed both houses of Congress
on October 19, 1998. Unfortunately, the President's report to Congress
failed to take the immediate action needed to stop the importation of
foreign steel.
While this resolution was an appropriate way for Congress to express
our concerns and request immediate actions by the Administration to
respond to the steel import crisis, I think it is also important to
give the Administration all the necessary tools to fight the surges of
foreign steel. After reviewing the U.S. trade laws, I discovered that
our trade laws place the United States at a disadvantage in the
international trade arena. Our laws are more strict than those
agreements made during the Uruguay Round negotiations on the General
Agreement on Tariffs and Trade (GATT). That agreement, which the Senate
considered and passed on December 1, 1994, established the World Trade
Organization (WTO) to administer these trade agreements.
The GATT established rules for the application of safeguard measures.
The agreement provides that a member of the WTO may apply a safeguard
measure to a product if the member has determined that such product is
being imported into its territory in such increased quantities,
absolute or relative to domestic production, and under such conditions
as to cause or threaten to cause serious injury to the domestic
industry that produces like or directly competitive products. The
comparable U.S. statute, referred to as safeguard actions, or Section
201 of the 1974 Trade Act, provide a procedure whereby the President
has the discretion to grant temporary import relief to a domestic
industry injured by increased imports. Our statute goes further than
GATT by requiring that foreign imports are the substantial cause of the
injury. It just does not make sense to hinder the Administration by
placing this additional burden on it in evaluating a claim of injury
due to surges of imports. We need to level the playing field so that
all countries are playing by the same rules. This oversight is one
example of the technical corrections that must be made to U.S. trade
laws to bring them in line with WTO's rules.
For these reasons and to provide relief to the domestic steel
industry injured by these overly strict laws, I am

[[Page S766]]

introducing the Trade Fairness Act of 1999, which seeks to: lower the
threshold for establishing injury in safeguard actions under Section
201 of the 1974 Trade Act; and, establish an import monitoring program
to monitor the influx of foreign steel on the U.S. market.
During the last days of the 105th Congress, I introduced the Trade
Fairness Act of 1998 which sought to amend the Trade Act of 1974 by
making technical corrections to our strict laws; the first section of
the legislation I am introducing today is based on that bill. First,
regarding safeguard actions, this legislation removes the requirement
that imports must be a ``substantial'' cause of the serious injury by
deleting the word ``substantial.'' The WTO's Safeguards Agreement does
not require that increased imports by a ``substantial'' cause of
serious injury. This change will lower the threshold to prove that the
influx of imports were the cause of injury to the affected industry and
will make U.S. law consistent with the WTO rules.
Second, the legislation clarifies that the International Trade
Commission (ITC) shall not attribute to imports injury caused by other
factors in making a determination that imports are a cause of serious
injury. This provision clarifies that there only needs to be a causal
link between the imports and the injury in order to gain relief. This
clarification is a more faithful implementation of the GATT Agreement
and will prevent circumstances such as a recession from blocking
invocation of Section 201 by the Administration.
Finally, this legislation brings the definition of ``serious injury''
in line with the definition codified in the GATT Agreement. The bill
strikes the definition of serious injury and replaces it with the WTO's
language regarding evaluation of whether increased imports have caused
serious injury to a domestic industry. Specifically, it states ``with
respect to serious injury'', the ITC should consider ``the rate and
amount of the increase in imports of the product concerned in absolute
and relative terms; the share of the domestic market taken by increased
imports; changes in the levels of sales; production; productivity;
capacity utilization; profits and losses; and, employment.'' These
factors are important guidance to the ITC in evaluating a petition of
serious injury. Again, I think it is appropriate to be consistent with
the WTO language as America increasingly interacts on a global scale.

Next, my legislation establishes a comprehensive steel import permit
and monitoring program, which is modeled on similar systems currently
in use in Canada and Mexico. The program created by this legislation
requires importers to provide information regarding country of origin,
quantity, value and Harmonized Tariff Schedule number. The program also
requires the Administration to release the data collected to the public
in aggregate form on an expedited basis. The information provided by
the licensing program will allow the Commerce Department and the steel
industry to monitor the influx of steel imports into the United States.
Currently, unfairly traded imports can cause significant damage to the
U.S. market long before the data is available for even preliminary
analysis. This program will allow the U.S. government to receive and
analyze critical data in a more timely manner and, as a result, allow
the industry to determine more quickly whether unfairly traded imports
are disrupting the market.
Specifically, the bill directs the Secretary of Commerce and the
Secretary of Treasury to implement a steel import monitoring program
that requires importers of all products classified within Chapters 72
and 73 of the Harmonized Tariff Schedule of the United States (HTSUS)
to obtain an import permit prior to entering such products in the
United States. In order to obtain an import permit, the importer is
required to submit an import permit application containing specific
information. An import permit is issued automatically upon receipt of
the application and is valid for a period of thirty days.
This legislation will enhance U.S. law to better respond to surges of
foreign imports that injure U.S. industries. It is important to note
that, with the exception of the steel import licensing provisions, this
legislation applies to all industries and is not limited to the steel
industry. As such, other U.S. industries that are faced with an import
crisis such as the steel industry is currently confronting would also
benefit from these improvements to the U.S. trade laws.
The U.S. steel industry has become a world class industry with a very
high-quality product. This has been achieved at a great cost: $50
billion in new investment to restructure and modernize; 40 million tons
of capacity taken out of the industry; and a work force dramatically
downsized from 500,000 to 170,000. With these technical changes, the
Administration will be armed with ammunition to bring a self-initiated
Section 201 action on behalf of the steel industry that has been harmed
not only by the onslaught of cheap imports on a daily basis but by U.S.
law that has prevented swift and immediate action by the U.S.
government. This legislation is essential to allow the President to
respond promptly to the current steel import crisis. It will allow
steel companies to compete in a more fair trade environment, preventing
bankruptcies that would cause the loss of thousands of high-paying jobs
in the steel industry. Too many steelworkers have lost their jobs due
to unfair cheap imports. I intend to stand up for the steel industry
and prevent the loss of any more jobs.
For these reasons, I urge my colleagues to join me in supporting
adoption of legislation to bring fairness to our trade laws and needed
relief to the steel industry.
Mr. SESSIONS. Mr. President, I rise today to join my colleagues in
introducing the ``Trade Fairness Act of 1999'' and thank Senator
Specter for his hard work in crafting this legislation which will help
alleviate the economic turmoil in our domestic steel industry caused by
illegal dumping.
Recent trade data indicates that steel imports to the United States
for the first ten months of 1998, ending in October, have reached an
all time record of 34,628,000 tons. In contrast, imports to the United
States in for the first ten months of 1997, which was itself a record
year, equaled 26,708,000 tons. This represents a 30 percent increase.
The bill I am joining in cosponsoring with Senator Specter today will
help make it easier for the President to enforce our existing trade
laws in two ways; it will lower the threshold necessary for the
President to take immediate action to stem the tide of illegal imports
under section 201 of the Trade Act of 1974 and it will create an
``Import Monitoring Program'' for steel, similar to the systems in
place in both Mexico and Canada, to identify the country of origin,
value and quantity of steel imports into the United States.
These actions are in line with the General Agreement on Tarriffs and
Trade (GATT) and will not hinder free trade with our international
trading partners. The bill will provide necessary information, critical
in determining whether illegal trade practices are occurring. This
provision will ensure the President can take immediate, decisive action
when those practices are identified.
The men and women who work in the United States steel business are
the most efficient and hardest working people in the world. Given a
fair shake, our domestic steel producers have and can continue to
compete with any of our international trading partners. Illegal dumping
has forced America's steel industry into jeopardy. The jobs of
thousands of steel workers in my home state of Alabama and across the
Nation are threatened. Our steel workers and companies deserve the
protection afforded to them by United States trade law and the rigorous
enforcement of those laws by our President.
______

By Mr. ROTH (for himself and Mr. Moynihan):
S. 262. A bill to make miscellaneous and technical changes to various
trade laws, and for other purposes. A bill to make miscellaneous and
technical changes to various trade laws, and for other purposes; to the
Committee on Finance.

[[Page S767]]

miscellaneous trade and technical corrections act of 1999

Mr. ROTH. Mr. President, I rise today to introduce, on behalf of
Senator Moynihan and myself, the Miscellaneous Trade and Technical
Corrections Act of 1999. This bill reflects unfinished business from
the 105th Congress and I am hopeful that the Senate will quickly move
to approve this legislation this year.
On September 29, the Finance Committee reported unanimously H.R.
4342, the Miscellaneous Tariff and Technical Corrections Act of 1998.
On October 20, 1998, the House passed and sent to the Senate H.R. 4856,
the identical bill with the addition of several provisions.
Unfortunately, for reasons unrelated to the substance of the bill, the
Senate was unable to pass either piece of legislation.
The bill I am introducing today with Senator Moynihan is
substantively identical to H.R. 4856, with only minor technical changes
necessary because of the passage of time. This bill contains over 150
provisions temporarily suspending or reducing the applicable tariffs on
a wide variety of products, including chemicals used to make anti-HIV,
anti-AIDS and anti-cancer drugs, pigments, paints, herbicides and
insecticides, certain machinery used in the production of textiles, and
rocket engines.
In each instance, there was either no domestic production of the
product in question or the domestic producers supported the measure. By
suspending or reducing the duties, we can enable U.S. firms that use
these products to produce goods in a more cost efficient manner,
thereby helping create jobs for American workers and reducing costs for
consumers.
The bill also contains a number of technical corrections and other
minor modifications to the trade laws that enjoyed broad support. One
such measure would help facilitate Customs Service clearance of
athletes that participate in world athletic events, such as the
upcoming Women's World Cup. Another measure would correct outdated
references in the trade laws.
For each of the provisions included in this bill, the House and
Senate has solicited comments from the public and from the
Administration to ensure that there was no controversy or opposition.
Only those measures that were noncontroversial were included in the
bill.
The Finance Committee is scheduled to hold a mark-up of this bill on
Friday, January 22nd. I hope that both the House and Senate will move
to approve this legislation soon.
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. 262

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the
``Miscellaneous Trade and Technical Corrections Act of
1999''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title.

TITLE I--MISCELLANEOUS TRADE CORRECTIONS

Sec. 1001. Clerical amendments.
Sec. 1002. Obsolete references to GATT.
Sec. 1003. Tariff classification of 13-inch televisions.

TITLE II--TEMPORARY DUTY SUSPENSIONS AND REDUCTIONS; OTHER TRADE
PROVISIONS

Subtitle A--Temporary Duty Suspensions and Reductions

Chapter 1--Reference

Sec. 2001. Reference.

Chapter 2--Duty Suspensions and Reductions

Sec. 2101. Diiodomethyl-p-tolylsulfone.
Sec. 2102. Racemic dl-menthol.
Sec. 2103. 2,4-Dichloro-5-hydrazinophenol monohydrochloride.
Sec. 2104. TAB.
Sec. 2105. Certain snowboard boots.
Sec. 2106. Ethofumesate singularly or in mixture with application
adjuvants.
Sec. 2107. 3-Methoxycarbonylaminophenyl-3'-methylcarbanilate
(phenmedipham).
Sec. 2108. 3-Ethoxycarbonylaminophenyl-N-phenylcarbamate (desmedipham).
Sec. 2109. 2-Amino-4-(4-aminobenzoylamino)benzenesulfonic acid, sodium
salt.
Sec. 2110. 5-Amino-N-(2-hydroxyethyl)-2,3-xylenesul- fonamide.
Sec. 2111. 3-Amino-2'-(sulfatoethylsulfonyl) ethyl benzamide.
Sec. 2112. 4-Chloro-3-nitrobenzenesulfonic acid, monopotassium salt.
Sec. 2113. 2-Amino-5-nitrothiazole.
Sec. 2114. 4-Chloro-3-nitrobenzenesulfonic acid.
Sec. 2115. 6-Amino-1,3-naphthalenedisulfonic acid.
Sec. 2116. 4-Chloro-3-nitrobenzenesulfonic acid, monosodium salt.
Sec. 2117. 2-Methyl-5-nitrobenzenesulfonic acid.
Sec. 2118. 6-Amino-1,3-naphthalenedisulfonic acid, disodium salt.
Sec. 2119. 2-Amino-p-cresol.
Sec. 2120. 6-Bromo-2,4-dinitroaniline.
Sec. 2121. 7-Acetylamino-4-hydroxy-2-naphthalenesulfonic acid,
monosodium salt.
Sec. 2122. Tannic acid.
Sec. 2123. 2-Amino-5-nitrobenzenesulfonic acid, monosodium salt.
Sec. 2124. 2-Amino-5-nitrobenzenesulfonic acid, monoammonium salt.
Sec. 2125. 2-Amino-5-nitrobenzenesulfonic acid.
Sec. 2126. 3-(4,5-Dihydro-3-methyl-5-oxo-1H-pyrazol-1-
yl)benzenesulfonic acid.
Sec. 2127. 4-Benzoylamino-5-hydroxy-2,7-naphtha- lenedisulfonic acid.
Sec. 2128. 4-Benzoylamino-5-hydroxy-2,7-naphtha- lenedisulfonic acid,
monosodium salt.
Sec. 2129. Pigment Yellow 151.
Sec. 2130. Pigment Yellow 181.
Sec. 2131. Pigment Yellow 154.
Sec. 2132. Pigment Yellow 175.
Sec. 2133. Pigment Yellow 180.
Sec. 2134. Pigment Yellow 191.
Sec. 2135. Pigment Red 187.
Sec. 2136. Pigment Red 247.
Sec. 2137. Pigment Orange 72.
Sec. 2138. Pigment Yellow 16.
Sec. 2139. Pigment Red 185.
Sec. 2140. Pigment Red 208.
Sec. 2141. Pigment Red 188.
Sec. 2142. 2,6-Dimethyl-m-dioxan-4-ol acetate.
Sec. 2143. -Bromo--nitrostyrene.
Sec. 2144. Textile machinery.
Sec. 2145. Deltamethrin.
Sec. 2146. Diclofop-methyl.
Sec. 2147. Resmethrin.
Sec. 2148. N-phenyl-N'-1,2,3-thiadiazol-5-ylurea.
Sec. 2149. (1R,3S)3[(1'RS)(1',2',2',2',-Tetrabromoethyl)]-2,2-
dimethylcyclopro-panecarboxylic acid, (S)--
cyano-3-phenoxybenzyl ester.
Sec. 2150. Pigment Yellow 109.
Sec. 2151. Pigment Yellow 110.
Sec. 2152. Pigment Red 177.
Sec. 2153. Textile printing machinery.
Sec. 2154. Substrates of synthetic quartz or synthetic fused silica.
Sec. 2155. 2-Methyl-4,6-bis[(octylthio)methyl]phenol.
Sec. 2156. 2-Methyl-4,6-bis[(octylthio)methyl]phenol; epoxidized
triglyceride.
Sec. 2157. 4-[[4,6-Bis(octylthio)-1,3,5-triazin-2-yl]amino]-2,6-
bis(1,1-dimethylethyl)phenol.
Sec. 2158. (2-Benzothiazolylthio)butanedioic acid.
Sec. 2159. Calcium bis[monoethyl(3,5-di-tert-butyl-4-hydroxybenzyl)
phosphonate].
Sec. 2160. 4-Methyl--oxo-benzenebutanoic acid compounded with
4-ethylmorpholine (2:1).
Sec. 2161. Weaving machines.
Sec. 2162. Certain weaving machines.
Sec. 2163. DEMT.
Sec. 2164. Benzenepropanal, 4-(1,1-dimethylethyl)-alpha-methyl-.
Sec. 2165. 2H-3,1-Benzoxazin-2-one, 6-chloro-4-(cyclopropylethynyl)-
1,4-dihydro-4-(trifluoromethyl)-.
Sec. 2166. Tebufenozide.
Sec. 2167. Halofenozide.
Sec. 2168. Certain organic pigments and dyes.
Sec. 2169. 4-Hexylresorcinol.
Sec. 2170. Certain sensitizing dyes.
Sec. 2171. Skating boots for use in the manufacture of in-line roller
skates.
Sec. 2172. Dibutylnaphthalenesulfonic acid, sodium salt.
Sec. 2173. O-(6-Chloro-3-phenyl-4-pyridazinyl)-S-octylcarbonothioate.
Sec. 2174. 4-Cyclopropyl-6-methyl-2-phenylaminopyrimidine.
Sec. 2175. O,O-Dimethyl-S-[5-methoxy-2-oxo-1,3,4-thiadiazol-3(2H)-yl-
methyl]-dithiophosphate.
Sec. 2176. Ethyl [2-(4-phenoxyphenoxy)ethyl]carbamate.
Sec. 2177. [(2S,4R)/(2R,4S)]/[(2R,4R)/(2S,4S)]-1-[2-[4-(4-
chlorophenoxy)-2-chlorophenyl]-4-methyl-1,3-dioxolan-2-
ylmethyl]-1H-1,2,4-triazole.
Sec. 2178. 2,4-Dichloro-3,5-dinitrobenzotrifluoride.
Sec. 2179. 2-Chloro-N-[2,6-dinitro-4-(trifluoromethyl)phenyl]-N-ethyl-
6-fluorobenzenemethanamine.
Sec. 2180. Chloroacetone.
Sec. 2181. Acetic acid, [(5-chloro-8-quinolinyl)oxy]-, 1-methylhexyl
ester.
Sec. 2182. Propanoic acid, 2-[4-[(5-chloro-3-fluoro-2-
pyridinyl)oxy]phenoxy]-, 2-propynyl ester.

[[Page S768]]

Sec. 2183. Mucochloric acid.
Sec. 2184. Certain rocket engines.
Sec. 2185. Pigment Red 144.
Sec. 2186. Pigment Orange 64.
Sec. 2187. Pigment Yellow 95.
Sec. 2188. Pigment Yellow 93.
Sec. 2189. (S)-N-[[5-[2-(2-Amino-4,6,7,8-tetrahydro-4-oxo-1H-
pyrimido[5,4-b] [1,4]thiazin-6-yl)ethyl]-2-
thienyl]carbonyl]-l-glutamic acid, diethyl ester.
Sec. 2190. 4-Chloropyridine hydrochloride.
Sec. 2191. 4-Phenoxypyridine.
Sec. 2192. (3S)-2,2-Dimethyl-3-thiomorpholine carboxylic acid.
Sec. 2193. 2-Amino-5-bromo-6-methyl-4-(1H)-quinazolinone.
Sec. 2194. 2-Amino-6-methyl-5-(4-pyridinylthio)-4(1H)-quinazolinone.
Sec. 2195. (S)-N-[[5-[2-(2-amino-4,6,7,8-tetrahydro-4-oxo-1H-
pyrimido[5,4-b][1,4]thiazin-6-yl)ethyl]-2-
thienyl]carbonyl]-l-glutamic acid.
Sec. 2196. 2-Amino-6-methyl-5-(4-pyridinylthio)-4-(1H)-quinazolinone
dihydrochloride.
Sec. 2197. 3-(Acetyloxy)-2-methylbenzoic acid.
Sec. 2198. [R-(R*,R*)]-1,2,3,4-butanetetrol-1,4-dimeth- anesulfonate.
Sec. 2199. 9-[2- [[Bis[ (pivaloyloxy) methoxy]phosphinyl] methoxy]
ethyl]adenine (also known as Adefovir Dipivoxil).
Sec. 2200. 9-[2-(R)-[[Bis[(isopropoxycarbonyl)oxy-methoxy]-
phosphinoyl]methoxy]-propyl]adenine fumarate (1:1).
Sec. 2201. (R)-9-(2-Phosphonomethoxypropyl)adenine.
Sec. 2202. (R)-1,3-Dioxolan-2-one, 4-methyl-.
Sec. 2203. 9-(2-Hydroxyethyl)adenine.
Sec. 2204. (R)-9H-Purine-9-ethanol, 6-amino--methyl-.
Sec. 2205. Chloromethyl-2-propyl carbonate.
Sec. 2206. (R)-1,2-Propanediol, 3-chloro-.
Sec. 2207. Oxirane, (S)-((triphenylmethoxy)methyl)-.
Sec. 2208. Chloromethyl pivalate.
Sec. 2209. Diethyl (((p-toluenesulfonyl)oxy)methyl)phosphonate.
Sec. 2210. Beta hydroxyalkylamide.
Sec. 2211. Grilamid tr90.
Sec. 2212. IN-W4280.
Sec. 2213. KL540.
Sec. 2214. Methyl thioglycolate.
Sec. 2215. DPX-E6758.
Sec. 2216. Ethylene, tetrafluoro copolymer with ethylene (ETFE).
Sec. 2217. 3-Mercapto-D-valine.
Sec. 2218. p-Ethylphenol.
Sec. 2219. Pantera.
Sec. 2220. p-Nitrobenzoic acid.
Sec. 2221. p-Toluenesulfonamide.
Sec. 2222. Polymers of tetrafluoroethylene, hexafluoropropylene, and
vinylidene fluoride.
Sec. 2223. Methyl 2-[[[[[4-(dimethylamino)-6-(2,2,2- trifluoroethoxy)-
1,3,5-triazin-2-yl]amino]-carbonyl]amino]sulfonyl]-3-
methyl-benzoate (triflusulfuron methyl).
Sec. 2224. Certain manufacturing equipment.
Sec. 2225. Textured rolled glass sheets.
Sec. 2226. Certain HIV drug substances.
Sec. 2227. Rimsulfuron.
Sec. 2228. Carbamic acid (V-9069).
Sec. 2229. DPX-E9260.
Sec. 2230. Ziram.
Sec. 2231. Ferroboron.
Sec. 2232. Acetic acid, [[2-chloro-4-fluoro-5-[(tetrahydro-3-oxo-1H,3H-
[1,3,4] thiadiazolo[3,4-a]pyridazin-1-
ylidene)amino]phenyl]- thio]-, methyl ester.
Sec. 2233. Pentyl[2-chloro-5-(cyclohex-1-ene-1,2-dicarboximido)-4-
fluorophenoxy]acetate.
Sec. 2234. Bentazon (3-isopropyl)-1H-2,1,3-benzo-thiadiazin-4(3H)-one-
2,2-dioxide).
Sec. 2235. Certain high-performance loudspeakers not mounted in their
enclosures.
Sec. 2236. Parts for use in the manufacture of certain high-performance
loudspeakers.
Sec. 2237. 5-tert-Butyl-isophthalic acid.
Sec. 2238. Certain polymer.
Sec. 2239. 2-(4-Chlorophenyl)-3-ethyl-2, 5-dihydro-5-oxo-4-pyridazine
carboxylic acid, potassium salt.

Chapter 3--Effective Date

Sec. 2301. Effective date.

Subtitle B--Trade Provisions

Sec. 2401. Extension of United States insular possession program.
Sec. 2402. Tariff treatment for certain components of scientific
instruments and apparatus.
Sec. 2403. Liquidation or reliquidation of certain entries.
Sec. 2404. Drawback and refund on packaging material.
Sec. 2405. Inclusion of commercial importation data from foreign-trade
zones under the National Customs Automation Program.
Sec. 2406. Large yachts imported for sale at United States boat shows.
Sec. 2407. Review of protests against decisions of Customs Service.
Sec. 2408. Entries of NAFTA-origin goods.
Sec. 2409. Treatment of international travel merchandise held at
customs-approved storage rooms.
Sec. 2410. Exception to 5-year reviews of countervailing duty or
antidumping duty orders.
Sec. 2411. Water resistant wool trousers.
Sec. 2412. Reimportation of certain goods.
Sec. 2413. Treatment of personal effects of participants in certain
world athletic events.
Sec. 2414. Reliquidation of certain entries of thermal transfer
multifunction machines.
Sec. 2415. Reliquidation of certain drawback entries and refund of
drawback payments.
Sec. 2416. Clarification of additional U.S. note 4 to chapter 91 of the
Harmonized Tariff Schedule of the United States.
Sec. 2417. Duty-free sales enterprises.
Sec. 2418. Customs user fees.
Sec. 2419. Duty drawback for methyl tertiary-butyl ether (``MTBE'').
Sec. 2420. Substitution of finished petroleum derivatives.
Sec. 2421. Duty on certain importations of mueslix cereals.
Sec. 2422. Expansion of Foreign Trade Zone No. 143.
Sec. 2423. Marking of certain silk products and containers.
Sec. 2424. Extension of nondiscriminatory treatment (normal trade
relations treatment) to the products of Mongolia.
Sec. 2425. Enhanced cargo inspection pilot program.
Sec. 2426. Payment of education costs of dependents of certain Customs
Service personnel.

TITLE III--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

Sec. 3001. Property subject to a liability treated in same manner as
assumption of liability.
TITLE I--MISCELLANEOUS TRADE CORRECTIONS

SEC. 1001. CLERICAL AMENDMENTS.

(a) Trade Act of 1974.--(1) Section 233(a) of the Trade Act
of 1974 (19 U.S.C. 2293(a)) is amended--
(A) by aligning the text of paragraph (2) that precedes
subparagraph (A) with the text of paragraph (1); and
(B) by aligning the text of subparagraphs (A) and (B) of
paragraph (2) with the text of subparagraphs (A) and (B) of
paragraph (3).
(2) Section 141(b) of the Trade Act of 1974 (19 U.S.C.
2171(b)) is amended--
(A) in paragraph (3) by striking ``Limitation on
appointments.--''; and
(B) by aligning the text of paragraph (3) with the text of
paragraph (2).
(3) The item relating to section 410 in the table of
contents for the Trade Act of 1974 is repealed.
(4) Section 411 of the Trade Act of 1974 (19 U.S.C. 2441),
and the item relating to section 411 in the table of contents
for that Act, are repealed.
(5) Section 154(b) of the Trade Act of 1974 (19 U.S.C.
2194(b)) is amended by striking ``For purposes of'' and all
that follows through ``90-day period'' and inserting ``For
purposes of sections 203(c) and 407(c)(2), the 90-day
period''.
(6) Section 406(e)(2) of the Trade Act of 1974 (19 U.S.C.
2436(e)(2)) is amended by moving subparagraphs (B) and (C) 2
ems to the left.
(7) Section 503(a)(2)(A)(ii) of the Trade Act of 1974 (19
U.S.C. 2463(a)(2)(A)(ii)) is amended by striking subclause
(II) and inserting the following:

``(II) the direct costs of processing operations performed
in such beneficiary developing country or such member
countries,

is not less than 35 percent of the appraised value of such
article at the time it is entered.''.
(8) Section 802(b)(1)(A) of the Trade Act of 1974 (19
U.S.C. 2492(b)(1)(A)) is amended--
(A) by striking ``481(e)'' and inserting ``489''; and
(B) by inserting ``(22 U.S.C. 2291h)'' after ``1961''.
(9) Section 804 of the Trade Act of 1974 (19 U.S.C. 2494)
is amended by striking ``481(e)(1) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2291(e)(1))'' and inserting ``489 of
the Foreign Assistance Act of 1961 (22 U.S.C. 2291h)''.
(10) Section 805(2) of the Trade Act of 1974 (19 U.S.C.
2495(2)) is amended by striking ``and'' after the semicolon.
(11) The table of contents for the Trade Act of 1974 is
amended by adding at the end the following:

``TITLE VIII--TARIFF TREATMENT OF PRODUCTS OF, AND OTHER SANCTIONS
AGAINST, UNCOOPERATIVE MAJOR DRUG PRODUCING OR DRUG-TRANSIT COUNTRIES

``Sec. 801. Short title.
``Sec. 802. Tariff treatment of products of uncooperative major drug
producing or drug-transit countries.
``Sec. 803. Sugar quota.
``Sec. 804. Progress reports.
``Sec. 805. Definitions.''.
(b) Other Trade Laws.--(1) Section 13031 of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c) is amended--
(A) in subsection (e) by aligning the text of paragraph (1)
with the text of paragraph (2); and
(B) in subsection (f)(3)--
(i) in subparagraph (A)(ii) by striking ``subsection (a)(1)
through (a)(8)'' and inserting ``paragraphs (1) through (8)
of subsection (a)''; and

[[Page S769]]

(ii) in subparagraph (C)(ii)(I) by striking ``paragraph
(A)(i)'' and inserting ``subparagraph (A)(i)''.
(2) Section 3(a) of the Act of June 18, 1934 (commonly
referred to as the ``Foreign Trade Zones Act'') (19 U.S.C.
81c(a)) is amended by striking the second period at the end
of the last sentence.
(3) Section 9 of the Act of June 18, 1934 (commonly
referred to as the ``Foreign Trade Zones Act'') (19 U.S.C.
81i) is amended by striking ``Post Office Department, the
Public Health Service, the Bureau of Immigration'' and
inserting ``United States Postal Service, the Public Health
Service, the Immigration and Naturalization Service''.
(4) The table of contents for the Trade Agreements Act of
1979 is amended--
(A) in the item relating to section 411 by striking
``Special Representative'' and inserting ``Trade
Representative''; and
(B) by inserting after the items relating to subtitle D of
title IV the following:

``Subtitle E--Standards and Measures Under the North American Free
Trade Agreement

``Chapter 1--Sanitary and Phytosanitary Measures

``Sec. 461. General.
``Sec. 462. Inquiry point.
``Sec. 463. Chapter definitions.

``Chapter 2--Standards-related Measures

``Sec. 471. General.
``Sec. 472. Inquiry point.
``Sec. 473. Chapter definitions.

``Chapter 3--Subtitle Definitions

``Sec. 481. Definitions.

``Subtitle F--International Standard-Setting Activities

``Sec. 491. Notice of United States participation in international
standard-setting activities.
``Sec. 492. Equivalence determinations.
``Sec. 493. Definitions.''.
(5)(A) Section 3(a)(9) of the Miscellaneous Trade and
Technical Corrections Act of 1996 is amended by striking
``631(a)'' and ``1631(a)'' and inserting ``631'' and
``1631'', respectively.
(B) Section 50(c)(2) of such Act is amended by striking
``applied to entry'' and inserting ``applied to such entry''.
(6) Section 8 of the Act of August 5, 1935 (19 U.S.C. 1708)
is repealed.
(7) Section 584(a) of the Tariff Act of 1930 (19 U.S.C.
1584(a)) is amended--
(A) in the last sentence of paragraph (2), by striking
``102(17) and 102(15), respectively, of the Controlled
Substances Act'' and inserting ``102(18) and 102(16),
respectively, of the Controlled Substances Act (21 U.S.C.
802(18) and 802(16))''; and
(B) in paragraph (3)--
(i) by striking ``or which consists of any spirits,'' and
all that follows through ``be not shown,''; and
(ii) by striking ``, and, if any manifested merchandise''
and all that follows through the end and inserting a period.
(8) Section 621(4)(A) of the North American Free Trade
Agreement Implementation Act, as amended by section 21(d)(12)
of the Miscellaneous Trade and Technical Amendments Act of
1996, is amended by striking ``disclosure within 30 days''
and inserting ``disclosure, or within 30 days''.
(9) Section 558(b) of the Tariff Act of 1930 (19 U.S.C.
1558(b)) is amended by striking ``(c)'' each place it appears
and inserting ``(h)''.
(10) Section 441 of the Tariff Act of 1930 (19 U.S.C. 1441)
is amended by striking paragraph (6).
(11) General note 3(a)(ii) to the Harmonized Tariff
Schedule of the United States is amended by striking
``general most-favored-nation (MFN)'' and by inserting in
lieu thereof ``general or normal trade relations (NTR)''.

SEC. 1002. OBSOLETE REFERENCES TO GATT.

(a) Forest Resources Conservation and Shortage Relief Act
of 1990.--(1) Section 488(b) of the Forest Resources
Conservation and Shortage Relief Act of 1990 (16 U.S.C.
620(b)) is amended--
(A) in paragraph (3) by striking ``General Agreement on
Tariffs and Trade'' and inserting ``GATT 1994 (as defined in
section 2(1)(B) of the Uruguay Round Agreements Act)'' ; and
(B) in paragraph (5) by striking ``General Agreement on
Tariffs and Trade'' and inserting ``WTO Agreement and the
multilateral trade agreements (as such terms are defined in
paragraphs (9) and (4), respectively, of section 2 of the
Uruguay Round Agreements Act)''.
(2) Section 491(g) of that Act (16 U.S.C. 620c(g)) is
amended by striking ``Contracting Parties to the General
Agreement on Tariffs and Trade'' and inserting ``Dispute
Settlement Body of the World Trade Organization (as the term
`World Trade Organization' is defined in section 2(8) of the
Uruguay Round Agreements Act)''.
(b) International Financial Institutions Act.--Section
1403(b) of the International Financial Institutions Act (22
U.S.C. 262n-2(b)) is amended--
(1) in paragraph (1)(A) by striking ``General Agreement on
Tariffs and Trade or Article 10'' and all that follows
through ``Trade'' and inserting ``GATT 1994 as defined in
section 2(1)(B) of the Uruguay Round Agreements Act, or
Article 3.1(a) of the Agreement on Subsidies and
Countervailing Measures referred to in section 101(d)(12) of
that Act''; and
(2) in paragraph (2)(B) by striking ``Article 6'' and all
that follows through ``Trade'' and inserting ``Article 15 of
the Agreement on Subsidies and Countervailing Measures
referred to in subparagraph (A)''.
(c) Bretton Woods Agreements Act.--Section 49(a)(3) of the
Bretton Woods Agreements Act (22 U.S.C. 286gg(a)(3)) is
amended by striking ``GATT Secretariat'' and inserting
``Secretariat of the World Trade Organization (as the term
`World Trade Organization' is defined in section 2(8) of the
Uruguay Round Agreements Act)''.
(d) Fishermen's Protective Act of 1967.--Section 8(a)(4) of
the Fishermen's Protective Act of 1967 (22 U.S.C. 1978(a)(4))
is amended by striking ``General Agreement on Tariffs and
Trade'' and inserting ``World Trade Organization (as defined
in section 2(8) of the Uruguay Round Agreements Act) or the
multilateral trade agreements (as defined in section 2(4) of
that Act)''.
(e) United States-Hong Kong Policy Act of 1992.--Section
102(3) of the United States-Hong Kong Policy Act of 1992 (22
U.S.C. 5712(3)) is amended--
(1) by striking ``contracting party to the General
Agreement on Tariffs and Trade'' and inserting ``WTO member
country (as defined in section 2(10) of the Uruguay Round
Agreements Act)''; and
(2) by striking ``latter organization'' and inserting
``World Trade Organization (as defined in section 2(8) of
that Act)''.
(f) NOAA Fleet Modernization Act.--Section 607(b)(8) of the
NOAA Fleet Modernization Act (33 U.S.C. 891e(b)(8)) is
amended by striking ``Agreement on Interpretation'' and all
that follows through ``trade negotiations'' and inserting
``Agreement on Subsidies and Countervailing Measures referred
to in section 101(d)(12) of the Uruguay Round Agreements Act,
or any other export subsidy prohibited by that agreement''.
(g) Energy Policy Act of 1992.--(1) Section 1011(b) of the
Energy Policy Act of 1992 (42 U.S.C. 2296b(b)) is amended--
(A) by striking ``General Agreement on Tariffs and Trade''
and inserting ``multilateral trade agreements (as defined in
section 2(4) of the Uruguay Round Agreements Act)''; and
(B) by striking ``United States-Canada Free Trade
Agreement'' and inserting ``North American Free Trade
Agreement''.
(2) Section 1017(c) of such Act (42 U.S.C. 2296b-6(c)) is
amended--
(A) by striking ``General Agreement on Tariffs and Trade''
and inserting ``multilateral trade agreements (as defined in
section 2(4) of the Uruguay Round Agreements Act)''; and
(B) by striking ``United States-Canada Free Trade
Agreement'' and inserting ``North American Free Trade
Agreement''.
(h) Energy Policy Conservation Act.--Section 400AA(a)(3) of
the Energy Policy Conservation Act (42 U.S.C. 6374(a)(3)) is
amended in subparagraphs (F) and (G) by striking ``General
Agreement on Tariffs and Trade'' each place it appears and
inserting ``multilateral trade agreements as defined in
section 2(4) of the Uruguay Round Agreements Act''.
(i) Title 49, United States Code.--Section 50103 of title
49, United States Code, is amended in subsections (c)(2) and
(e)(2) by striking ``General Agreement on Tariffs and Trade''
and inserting ``multilateral trade agreements (as defined in
section 2(4) of the Uruguay Round Agreements Act)''.

SEC. 1003. TARIFF CLASSIFICATION OF 13-INCH TELEVISIONS.

(a) In General.--Each of the following subheadings of the
Harmonized Tariff Schedule of the United States is amended by
striking ``33.02 cm'' in the article description and
inserting ``34.29 cm'':
(1) Subheading 8528.12.12.
(2) Subheading 8528.12.20.
(3) Subheading 8528.12.62.
(4) Subheading 8528.12.68.
(5) Subheading 8528.12.76.
(6) Subheading 8528.12.84.
(7) Subheading 8528.21.16.
(8) Subheading 8528.21.24.
(9) Subheading 8528.21.55.
(10) Subheading 8528.21.65.
(11) Subheading 8528.21.75.
(12) Subheading 8528.21.85.
(13) Subheading 8528.30.62.
(14) Subheading 8528.30.66.
(15) Subheading 8540.11.24.
(16) Subheading 8540.11.44.
(b) Effective Date.--
(1) In general.--The amendments made by this section apply
to articles entered, or withdrawn from warehouse for
consumption, on or after the date that is 15 days after the
date of enactment of this Act.
(2) Retroactive application.--Notwithstanding section 514
of the Tariff Act of 1930 or any other provision of law, upon
proper request filed with the Customs Service not later than
180 days after the date of enactment of this Act, any entry,
or withdrawal from warehouse for consumption, of an article
described in a subheading listed in paragraphs (1) through
(16) of subsection (a)--
(A) that was made on or after January 1, 1995, and before
the date that is 15 days after the date of enactment of this
Act,
(B) with respect to which there would have been no duty or
a lesser duty if the amendments made by subsection (a)
applied to such entry, and
(C) that is--
(i) unliquidated,
(ii) under protest, or
(iii) otherwise not final,

shall be liquidated or reliquidated as though such amendment
applied to such entry.

[[Page S770]]

TITLE II--TEMPORARY DUTY SUSPENSIONS AND REDUCTIONS; OTHER
TRADE PROVISIONS
Subtitle A--Temporary Duty Suspensions and Reductions

CHAPTER 1--REFERENCE

SEC. 2001. REFERENCE.

Except as otherwise expressly provided, whenever in this
subtitle an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a chapter, subchapter, note,
additional U.S. note, heading, subheading, or other
provision, the reference shall be considered to be made to a
chapter, subchapter, note, additional U.S. note, heading,
subheading, or other provision of the Harmonized Tariff
Schedule of the United States (19 U.S.C. 3007).

CHAPTER 2--DUTY SUSPENSIONS AND REDUCTIONS

SEC. 2101. DIIODOMETHYL-P-TOLYLSULFONE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.90 Diiodomethyl-p-
tolylsulfone (CAS
No. 20018-09-1)
(provided for in
subheading
2930.90.10)...... Free No change No change On or before 12/
31/2001

SEC. 2102. RACEMIC DL-MENTHOL.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.06 Racemic dl-menthol
(intermediate (E)
for use in
producing
menthol) (CAS No.
15356-70-4)
(provided for in
subheading
2906.11.00)...... Free No change No change On or before 12/
31/2001

SEC. 2103. 2,4-DICHLORO-5-HYDRAZINOPHENOL MONOHY-
DROCHLORIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.28 2,4-Dichloro-5-
hydrazinophenol
monohy
drochloride (CAS
No. 189573-21-5)
(provided for in
subheading
2928.00.25)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2104. TAB.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.95 Phosphinic acid,
[3-(acetyloxy)-3-
cyanopropyl]methy
l-, butyl ester
(CAS No. 167004-
78-6) (provided
for in subheading
2931.00.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2105. CERTAIN SNOWBOARD BOOTS.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.64.04 Snowboard boots
with uppers of
textile materials
(provided for in
subheading
6404.11.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2106. ETHOFUMESATE SINGULARLY OR IN MIXTURE WITH
APPLICATION ADJUVANTS.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.31.12 2-Ethoxy-2,3-
dihydro-3,3-
dimethyl-5-
benzofuranyl-
methanesulfonate
(ethofumesate)
singularly or in
mixture with
application
adjuvants (CAS
No. 26225-79-6)
(provided for in
subheading
2932.99.08 or
3808.30.15)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2107. 3-METHOXYCARBONYLAMINOPHENYL-3'-METHYL-CARBANILATE
(PHENMEDIPHAM).

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.31.13 3-
Methoxycarbonylam
ino- phenyl-3-
methylcarbanilate
(phenmedipham)
(CAS No. 13684-63-
4) (provided for
in subheading
2924.29.47)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2108. 3-ETHOXYCARBONYLAMINOPHENYL-N-PHENYL-CARBAMATE
(DESMEDIPHAM).

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.31.14 3-
Ethoxycarbonylami
no-phenyl-N-
phenylcarbamate
(desmedipham)
(CAS No. 13684-56-
5) (provided for
in subheading
2924.29.41)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2109. 2-AMINO-4-(4-AMINOBENZOYLAMINO)BENZENE-SULFONIC
ACID, SODIUM SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S771]]

`` 9902.30.91 2-Amino-4-(4-
aminobenzoyl-
amino)
benzenesulfonic
acid, sodium salt
(CAS No. 167614-
37-1) (provided
for in subheading
2930.90.29)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2110. 5-AMINO-N-(2-HYDROXYETHYL)-2,3-XYLENESUL-
FONAMIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.30.31 5-Amino-N-(2-
hydroxyethyl)-2,3-
xylenesulfonamide
(CAS No. 25797-78-
8) (provided for
in subheading
2935.00.95)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2111. 3-AMINO-2'-(SULFATOETHYLSULFONYL) ETHYL BENZAMIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.30.90 3-Amino-2-
(sulfatoethylsulf
onyl) ethyl
benzamide (CAS
No. 121315-20-6)
(provided for in
subheading
2930.90.29)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2112. 4-CHLORO-3-NITROBENZENESULFONIC ACID,
MONOPOTASSIUM SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.30.92 4-Chloro-3-
nitrobenzenesulfo
nic acid,
monopotassium
salt (CAS No.
6671-49-4)
(provided for in
subheading
2904.90.47)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2113. 2-AMINO-5-NITROTHIAZOLE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.46 2-Amino-5-
nitrothiazole
(CAS No. 121-66-
4) (provided for
in subheading
2934.10.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2114. 4-CHLORO-3-NITROBENZENESULFONIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.30.04 4-Chloro-3-
nitrobenzenesulfo
nic acid (CAS No.
121-18-6)
(provided for in
subheading
2904.90.47)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2115. 6-AMINO-1,3-NAPHTHALENEDISULFONIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.21 6-Amino-1,3-
naphthalenedisulf
onic acid (CAS
No. 118-33-2)
(provided for in
subheading
2921.45.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2116. 4-CHLORO-3-NITROBENZENESULFONIC ACID, MONOSODIUM
SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.24 4-Chloro-3-
nitrobenzenesulfo
nic acid,
monosodium salt
(CAS No. 17691-19-
9) (provided for
in subheading
2904.90.40)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2117. 2-METHYL-5-NITROBENZENESULFONIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.23 2-Methyl-5-
nitrobenzenesulfo
nic acid (CAS No.
121-03-9)
(provided for in
subheading
2904.90.20)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2118. 6-AMINO-1,3-NAPHTHALENEDISULFONIC ACID, DISODIUM
SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.45 6-Amino-1,3-
naphthalenedisulf
onic acid,
disodium salt
(CAS No. 50976-35-
7) (provided for
in subheading
2921.45.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2119. 2-AMINO-P-CRESOL.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.20 2-Amino-p-cresol
(CAS No. 95-84-1)
(provided for in
subheading
2922.29.10)...... Free No change No change On or before 12/
31/2001
''.

[[Page S772]]

SEC. 2120. 6-BROMO-2,4-DINITROANILINE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.43 6-Bromo-2,4-
dinitroaniline
(CAS No. 1817-73-
8) (provided for
in subheading
2921.42.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2121. 7-ACETYLAMINO-4-HYDROXY-2-NAPHTHALENE-SULFONIC
ACID, MONOSODIUM SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.29 7-Acetylamino-4-
hydroxy-2-
naphthalenesulfon
ic acid,
monosodium salt
(CAS No. 42360-29-
2) (provided for
in subheading
2924.29.70)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2122. TANNIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.01 Tannic acid (CAS
No. 1401-55-4)
(provided for in
subheading
3201.90.10)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2123. 2-AMINO-5-NITROBENZENESULFONIC ACID, MONOSODIUM
SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.53 2-Amino-5-
nitrobenzenesulfo
nic acid,
monosodium salt
(CAS No. 30693-53-
9) (provided for
in subheading
2921.42.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2124. 2-AMINO-5-NITROBENZENESULFONIC ACID, MONOAMMONIUM
SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.44 2-Amino-5-
nitrobenzenesulfo
nic acid,
monoammonium salt
(CAS No. 4346-51-
4) (provided for
in subheading
2921.42.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2125. 2-AMINO-5-NITROBENZENESULFONIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.54 2-Amino-5-
nitrobenzenesulfo
nic acid (CAS No.
96-75-3)
(provided for in
subheading
2921.42.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2126. 3-(4,5-DIHYDRO-3-METHYL-5-OXO-1H-PYRAZOL-1-
YL)BENZENESULFONIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.19 3-(4,5-Dihydro-3-
methyl-5-oxo-1H-
pyrazol-1-
yl)benzenesulfoni
c acid (CAS No.
119-17-5)
(provided for in
subheading
2933.19.43)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2127. 4-BENZOYLAMINO-5-HYDROXY-2,7-NAPHTHA-
LENEDISULFONIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.65 4-Benzoylamino-5-
hydroxy-2,7-
naphthalenedisulf
onic acid (CAS
No. 117-46-4)
(provided for in
subheading
2924.29.75)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2128. 4-BENZOYLAMINO-5-HYDROXY-2,7-NAPHTHA-
LENEDISULFONIC ACID, MONOSODIUM SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.72 4-Benzoylamino-5-
hydroxy-2,7-
naphthalenedisulf
onic acid,
monosodium salt
(CAS No. 79873-39-
5) (provided for
in subheading
2924.29.70)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2129. PIGMENT YELLOW 151.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.04 Pigment Yellow 151
(CAS No. 031837-
42-0) (provided
for in subheading
3204.17.90)...... 6.4% No change No change On or before 12/
31/2001
''.

SEC. 2130. PIGMENT YELLOW 181.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.17 Pigment Yellow 181
(CAS No. 074441-
05-7) (provided
for in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

[[Page S773]]

SEC. 2131. PIGMENT YELLOW 154.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.18 Pigment Yellow 154
(CAS No. 068134-
22-5) (provided
for in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2132. PIGMENT YELLOW 175.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.19 Pigment Yellow 175
(CAS No. 035636-
63-6) (provided
for in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2133. PIGMENT YELLOW 180.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.20 Pigment Yellow 180
(CAS No. 77804-81-
0) (provided for
in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2134. PIGMENT YELLOW 191.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.21 Pigment Yellow 191
(CAS No. 129423-
54-7) (provided
for in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2135. PIGMENT RED 187.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following heading:

`` 9902.32.22 Pigment Red 187
(CAS No. 59487-23-
9) (provided for
in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2136. PIGMENT RED 247.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.23 Pigment Red 247
(CAS No. 43035-18-
3) (provided for
in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2137. PIGMENT ORANGE 72.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.24 Pigment Orange 72
(CAS No. 78245-94-
0) (provided for
in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2138. PIGMENT YELLOW 16.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.25 Pigment Yellow 16
(CAS No. 5979-28-
2) (provided for
in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2139. PIGMENT RED 185.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following heading:

`` 9902.32.26 Pigment Red 185
(CAS No. 51920-12-
8) (provided for
in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2140. PIGMENT RED 208.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.27 Pigment Red 208
(CAS No. 31778-10-
6) (provided for
in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2141. PIGMENT RED 188.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.28 Pigment Red 188
(CAS No. 61847-48-
1) (provided for
in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2142. 2,6-DIMETHYL-M-DIOXAN-4-OL ACETATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S774]]

`` 9902.32.94 2,6-Dimethyl-m-
dioxan-4-ol
acetate (CAS No.
000828-00-2)
(provided for in
subheading
2932.99.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2143. -BROMO--NITROSTYRENE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.92 -Bromo-
-
nitrostyrene (CAS
No. 7166-19-0)
(provided for in
subheading
2904.90.47)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2144. TEXTILE MACHINERY.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.84.43 Ink-jet textile
printing
machinery
(provided for in
subheading
8443.51.10)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2145. DELTAMETHRIN.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.30.18 (S)--
Cyano-3-
phenoxybenzyl
(1R,3R)-3-(2,2-
dibromovinyl)-2,2-
dimethylcycloprop
anecarboxylate
(deltamethrin) in
bulk or in forms
or packings for
retail sale (CAS
No. 52918-63-5)
(provided for in
subheading
2926.90.30 or
3808.10.25)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2146. DICLOFOP-METHYL.

Subchapter II of chapter 99 is amended by striking heading
9902.30.16 and inserting the following:

`` 9902.30.16 Methyl 2-[4-(2,4-
dichlorophenoxy)p
henoxy]
propionate
(diclofop-methyl)
in bulk or in
forms or packages
for retail sale
containing no
other pesticide
products (CAS No.
51338-27-3)
(provided for in
subheading
2918.90.20 or
3808.30.15)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2147. RESMETHRIN.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.29 ([5-(Phenylmethyl)-
3-furanyl] methyl
2,2-dimethyl-3-(2-
methyl-1-
propenyl)
cyclopropanecarbo
xylate
(resmethrin) (CAS
No. 10453-86-8)
(provided for in
subheading
2932.19.10)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2148. N-PHENYL-N'-1,2,3-THIADIAZOL-5-YLUREA.

Subchapter II of chapter 99 is amended by striking heading
9902.30.17 and inserting the following:

`` 9902.30.17 N-phenyl-N-1,2,3-
thiadiazol-5-
ylurea
(thidiazuron) in
bulk or in forms
or packages for
retail sale (CAS
No. 51707-55-2)
(provided for in
subheading
2934.90.15 or
3808.30.15)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2149. (1R,3S)3[(1'RS)(1',2',2',2',-TETRABROMOETHYL)]-
2,2-DIMETHYLCYCLOPROPANECARBOXYLIC ACID, (S)-
-CYANO-3-PHENOXYBENZYL ESTER.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.30.19 (1R,3S)3[(1RS)(1,2
,2,2,-
Tetrabromoethyl)]-
2,2-
dimethylcycloprop
anecarboxylic
acid, (S)--cyano-3-
phenoxybenzyl
ester in bulk or
in forms or
packages for
retail sale (CAS
No. 66841-25-6)
(provided for in
subheading
2926.90.30 or
3808.10.25)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2150. PIGMENT YELLOW 109.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.00 Pigment Yellow 109
(CAS No. 106276-
79-3) (provided
for in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001
''.

[[Page S775]]

SEC. 2151. PIGMENT YELLOW 110.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.05 Pigment Yellow 110
(CAS No. 106276-
80-6) (provided
for in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2152. PIGMENT RED 177.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.30.58 Pigment Red 177
(CAS No. 4051-63-
2) (provided for
in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001

SEC. 2153. TEXTILE PRINTING MACHINERY.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.84.20 Textile printing
machinery
(provided for in
subheading
8443.59.10)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2154. SUBSTRATES OF SYNTHETIC QUARTZ OR SYNTHETIC FUSED
SILICA.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.70.06 Substrates of
synthetic quartz
or synthetic
fused silica
imported in bulk
or in forms or
packages for
retail sale
(provided for in
subheading
7006.00.40)...... Free No change No change On or before 12/
31/2001

SEC. 2155. 2-METHYL-4,6-BIS[(OCTYLTHIO)METHYL]PHENOL.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.14 2-Methyl-4,6-
bis[(octylthio)
methyl]phenol
(CAS No. 110553-
27-0) (provided
for in subheading
2930.90.29)...... Free No change No change On or before 12/
31/2001

SEC. 2156. 2-METHYL-4,6-BIS[(OCTYLTHIO)METHYL]PHENOL;
EPOXIDIZED TRIGLYCERIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.38.12 2-Methyl-4,6-
bis[(octylthio)
methyl]phenol;
epoxidized
triglyceride
(provided for in
subheading
3812.30.60)...... Free No change No change On or before 12/
31/2001

SEC. 2157. 4-[[4,6-BIS(OCTYLTHIO)-1,3,5-TRIAZIN-2-YL]AMINO] -
2,6-BIS(1,1-DIMETHYLETHYL)PHENOL.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.30 4-[[4,6-
Bis(octylthio)-
1,3,5-triazin-2-
yl]amino]-2,6-
bis(1,1-
dimethylethyl)phe
nol (CAS No. 991-
84-4) (provided
for in subheading
2933.69.60)...... Free No change No change On or before 12/
31/2001

SEC. 2158. (2-BENZOTHIAZOLYLTHIO)BUTANEDIOIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.31 (2-
Benzothiazolylthi
o)butane-dioic
acid (CAS No.
95154-01-1)
(provided for in
subheading
2934.20.40)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2159. CALCIUM BIS[MONOETHYL(3,5-DI-TERT-BUTYL-4-
HYDROXYBENZYL) PHOSPHONATE].

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.16 Calcium
bis[monoethyl(3,5-
di-tert-butyl-4-
hydroxybenzyl)
phosphonate] (CAS
No. 65140-91-2)
(provided for in
subheading
2931.00.30)...... Free No change No change On or before 12/
31/2001

SEC. 2160. 4-METHYL--OXO-BENZENEBUTANOIC ACID
COMPOUNDED WITH 4-ETHYLMORPHOLINE (2:1).

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.38.26 4-Methyl--
oxo-
benzenebutanoic
acid compounded
with 4-
ethylmorpholine
(2:1) (CAS No.
171054-89-0)
(provided for in
subheading
3824.90.28)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2161. WEAVING MACHINES.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S776]]

`` 9902.84.46 Weaving machines
(looms),
shuttleless type,
for weaving
fabrics of a
width exceeding
30 cm but not
exceeding 4.9 m
(provided for in
subheading
8446.30.50),
entered without
off-loom or large
loom take-ups,
drop wires,
heddles, reeds,
harness frames,
or beams......... 3.3% No change No change On or before 12/
31/2001
''.

SEC. 2162. CERTAIN WEAVING MACHINES.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.84.10 Power weaving
machines (looms),
shuttle type, for
weaving fabrics
of a width
exceeding 30 cm
but not exceeding
4.9m (provided
for in subheading
8446.21.50), if
entered without
off-loom or large
loom take-ups,
drop wires,
heddles, reeds,
harness frames or
beams............ Free No change No change On or before 12/
31/2001 '
'.

SEC. 2163. DEMT.

Subchapter II of chapter 99 is amended by striking heading
9902.32.12 and inserting the following:

`` 9902.32.12 N,N-Diethyl-m-
toluidine (DEMT)
(CAS No. 91-67-8)
(provided for in
subheading
2921.43.80)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2164. BENZENEPROPANAL, 4-(1,1-DIMETHYLETHYL)-ALPHA-
METHYL-.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.57 Benzenepropanal, 4-
(1,1-
dimethylethyl)-
alpha-methyl-
(CAS No. 80-54-6)
(provided for in
subheading
2912.29.60)...... 6% No change No change On or before 12/
31/2001
''.

SEC. 2165. 2H-3,1-BENZOXAZIN-2-ONE, 6-CHLORO-4-(CYCLO-
PROPYLETHYNYL)-1,4-DIHYDRO-4-
(TRIFLUOROMETHYL)-.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.56 2H-3,1-Benzoxazin-
2-one, 6-chloro-4-
(cyclopropylethyn
yl)-1,4-dihydro-4-
(trifluoromethyl)-
(CAS No. 154598-
52-4) (provided
for in subheading
2934.90.30)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2166. TEBUFENOZIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.32 N-tert-Butyl-N'-(4-
ethylbenzoyl)-3,5-
Dimethylbenzoylhy
drazide
(Tebufenozide)
(CAS No. 112410-
23-8) (provided
for in subheading
2928.00.25)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2167. HALOFENOZIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.36 Benzoic acid, 4-
chloro-2-benzoyl-
2-(1,1-
dimethylethyl)
hydrazide
(Halofenozide)
(CAS No. 112226-
61-6) (provided
for in subheading
2928.00.25)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2168. CERTAIN ORGANIC PIGMENTS AND DYES.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.07 Organic
luminescent
pigments and dyes
for security
applications
excluding
daylight
fluorescent
pigments and dyes
(provided for in
subheading
3204.90.00)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2169. 4-HEXYLRESORCINOL.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.07 4-Hexylresorcinol
(CAS No. 136-77-
6) (provided for
in subheading
2907.29.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2170. CERTAIN SENSITIZING DYES.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S777]]

`` 9902.29.37 Polymethine photo-
sensitizing dyes
(provided for in
subheadings
2933.19.30,
2933.19.90,
2933.90.24,
2934.10.90,
2934.20.40,
2934.90.20, and
2934.90.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2171. SKATING BOOTS FOR USE IN THE MANUFACTURE OF IN-
LINE ROLLER SKATES.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.64.05 Boots for use in
the manufacture
of in-line roller
skates (provided
for in
subheadings
6402.19.90,
6403.19.40,
6403.19.70, and
6404.11.90)...... Free No change No change On or before 12/
31/2001 '
'.

SEC. 2172. DIBUTYLNAPHTHALENESULFONIC ACID, SODIUM SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.34.02 Surface active
preparation
containing 30
percent or more
by weight of
dibutylnaphthalen
esulfonic acid,
sodium salt (CAS
No. 25638-17-9)
(provided for in
subheading
3402.90.30)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2173. O-(6-CHLORO-3-PHENYL-4-PYRIDAZINYL)-S-
OCTYLCARBONOTHIOATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.38.08 O-(6-Chloro-3-
phenyl-4-
pyridazinyl)-S-
octyl-
carbonothioate
(CAS No. 55512-33-
9) (provided for
in subheading
3808.30.15)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2174. 4-CYCLOPROPYL-6-METHYL-2-PHENYLAMINOPY-RIMIDINE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.50 4-Cyclopropyl-6-
methyl-2-
phenylaminopyrimi
dine (CAS No.
121552-61-2)
(provided for in
subheading
2933.59.15)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2175. O,O-DIMETHYL-S-[5-METHOXY-2-OXO-1,3,4-THIADI-AZOL-
3(2H)-YL-METHYL]DITHIOPHOSPHATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.51 O,O-Dimethyl-S-[5-
methoxy-2-oxo-
1,3,4-thiadiazol-
3(2H)-yl-
methyl]dithiophos
phate (CAS No.
950-37-8)
(provided for in
subheading
2934.90.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2176. ETHYL [2-(4-PHENOXY-PHENOXY) ETHYL] CARBAMATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.52 Ethyl [2-(4-
phenoxyphenoxy)-
ethyl]carbamate
(CAS No. 79127-80-
3) (provided for
in subheading
2924.10.80)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2177. [(2S,4R)/(2R,4S)]/[(2R,4R)/(2S,4S)]-1-[2-[4-(4-
CHLORO-PHENOXY)-2-CHLOROPHENYL]-4-METHYL-1,3-
DIOXOLAN-2-YLMETHYL]-1H-1,2,4-TRIAZOLE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.74 [(2S,4R)/(2R,4S)]/
[(2R,4R)/
(2S,4S)]-1-[2-[4-
(4-Chloro-
phenoxy)-2-
chlorophenyl]-4-
methyl-1,3-
dioxolan-2-yl-
methyl]-1H-1,2,4-
triazole (CAS No.
119446-68-3)
(provided for in
subheading
2934.90.12)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2178. 2,4-DICHLORO-3,5-DINITROBENZOTRIFLUORIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.12 2,4-Dichloro-3,5-
dinitrobenzotrifl
uoride (CAS No.
29091-09-6)
(provided for in
subheading
2910.90.20)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2179. 2-CHLORO-N-[2,6-DINITRO-4-(TRIFLUOROMETHYL)
PHENYL]-N-ETHYL-6-FLUOROBENZENEMETHANAMINE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S778]]

`` 9902.29.15 2-Chloro-N-[2,6-
dinitro-4-
(trifluoromethyl)
phenyl]-N-ethyl-6-
fluorobenzenemeth
anamine (CAS No.
62924-70-3)
(provided for in
subheading
2921.49.45)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2180. CHLOROACETONE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.11 Chloroacetone (CAS
No. 78-95-5)
(provided for in
subheading
2914.19.00)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2181. ACETIC ACID, [(5-CHLORO-8-QUINOLINYL)OXY]-, 1-
METHYLHEXYL ESTER.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.60 Acetic acid, [(5-
chloro-8-
quinolinyl)oxy]-,
1-methylhexyl
ester (CAS No.
99607-70-2)
(provided for in
subheading
2933.40.30)...... Free No change No change On or before
12/31/2001
''.

SEC. 2182. PROPANOIC ACID, 2-[4-[(5-CHLORO-3-FLUORO-2-
PYRIDINYL)OXY]PHENOXY]-, 2-PROPYNYL ESTER.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.19 Propanoic acid, 2-
[4-[(5-chloro-3-
fluoro-2-
pyridinyl)oxy]phe
noxy]-, 2-
propynyl ester
(CAS No. 105512-
06-9) (provided
for in subheading
2933.39.25)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2183. MUCOCHLORIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.18 Mucochloric acid
(CAS No. 87-56-9)
(provided for in
subheading
2918.30.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2184. CERTAIN ROCKET ENGINES.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.84.12 Dual thrust
chamber rocket
engines each
having a maximum
static sea level
thrust exceeding
3,550 kN and
nozzle exit
diameter
exceeding 127 cm
(provided for in
subheading
8412.10.00)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2185. PIGMENT RED 144.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.11 Pigment Red 144
(CAS No. 5280-78-
4) (provided for
in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2186. PIGMENT ORANGE 64.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.09 Pigment Orange 64
(CAS No. 72102-84-
2) (provided for
in subheading
3204.17.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2187. PIGMENT YELLOW 95.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.08 Pigment Yellow 95
(CAS No. 5280-80-
8) (provided for
in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2188. PIGMENT YELLOW 93.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.13 Pigment Yellow 93
(CAS No. 5580-57-
4) (provided for
in subheading
3204.17.04)...... Free No change No change On or before 12/
31/2001

SEC. 2189. (S)-N-[[5-[2-(2-AMINO-4,6,7,8-TETRAHYDRO-4-OXO-1H-
PYRIMIDO[5,4-B] [1,4]THIAZIN-6-YL)ETHYL]-2-
THIENYL]CARBONYL]-L-GLUTAMIC ACID, DIETHYL
ESTER.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S779]]

`` 9902.32.33 (S)-N-[[5-[2-(2-
Amino-4,6,7,8-
tetrahydro-4-oxo-
1H-pyrimido[5,4-
b] [1,4]thiazin-6-
yl)ethyl]-2-
thienyl]carbonyl]-
L-glutamic acid,
diethyl ester
(CAS No. 177575-
19-8) (provided
for in subheading
2934.90.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2190. 4-CHLOROPYRIDINE HYDROCHLORIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.34 4-Chloropyridine
hydrochloride
(CAS No. 7379-35-
3) (provided for
in subheading
2933.39.61)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2191. 4-PHENOXYPYRIDINE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.35 4-Phenoxypyridine
(CAS No. 4783-86-
2) (provided for
in subheading
2933.39.61)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2192. (3S)-2,2-DIMETHYL-3-THIOMORPHOLINE CARBOXYLIC
ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.36 (3S)-2,2-Dimethyl-
3-thiomorpholine
carboxylic acid
(CAS No. 84915-43-
5) (provided for
in subheading
2934.90.90)...... Free No Change No Change On or before 12/
31/2001 ''
.

SEC. 2193. 2-AMINO-5-BROMO-6-METHYL-4-(1H)-QUINAZOLI-NONE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.37 2-Amino-5-bromo-6-
methyl-4-(1H)-
quinazolinone
(CAS No. 147149-
89-1) (provided
for in subheading
2933.59.70)...... Free No Change No Change On or before 12/
31/2001 ''
.

SEC. 2194. 2-AMINO-6-METHYL-5-(4-PYRIDINYLTHIO)-4(1H)-
QUINAZOLINONE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.38 2-Amino-6-methyl-5-
(4-pyridinylthio)-
4(1H)-
quinazolinone
(CAS No. 147149-
76-6) (provided
for in subheading
2933.59.70)...... Free No Change No Change On or before 12/
31/2001 ''
.

SEC. 2195. (S)-N-[[5-[2-(2-AMINO-4,6,7,8-TETRAHYDRO-4-OXO-1H-
PYRIMIDO[5,4-B][1,4]THIAZIN-6-YL)ETHYL]-2-
THIENYL]CARBONYL]-L-GLUTAMIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.39 (S)-N-[[5-[2-(2-
Amino-4,6,7,8-
tetrahydro-4-oxo-
1H-pyrimido[5,4-
b][1,4]thiazin-6-
yl)ethyl]-2-
thienyl]carbonyl]-
L-glutamic acid
(CAS No. 177575-
17-6) (provided
for in subheading
2934.90.90)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2196. 2-AMINO-6-METHYL-5-(4-PYRIDINYLTHIO)-4-(1H)-
QUINAZOLINONE DIHYDROCHLORIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.40 2-Amino-6-methyl-5-
(4-pyridinylthio)-
4-(1H)-
quinazolinone
dihydrochloride
(CAS No. 152946-
68-4) (provided
for in subheading
2933.59.70)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2197. 3-(ACETYLOXY)-2-METHYLBENZOIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.41 3-(Acetyloxy)-2-
methylbenzoic
acid (CAS No.
168899-58-9)
(provided for in
subheading
2918.29.65)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2198. [R-(R*,R*)]-1,2,3,4-BUTANETETROL-1,4-DIMETH-
ANESULFONATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.42 [R-(R*,R*)]-
1,2,3,4-
Butanetetrol-1,4-
dimethanesulfonat
e (CAS No. 1947-
62-2) (provided
for in subheading
2905.49.50)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2199. 9-[2- [[BIS[(PIVALOYLOXY) METHOXY]PHOS-
PHINYL]METHOXY] ETHYL]ADENINE (ALSO KNOWN AS
ADEFOVIR DIPIVOXIL).

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S780]]

`` 9902.33.01 9-[2-
[[Bis[(pivaloylox
y)-
methoxy]phosphiny
l]- methoxy]
ethyl]adenine
(also known as
Adefovir
Dipivoxil) (CAS
No. 142340-99-6)
(provided for in
subheading
2933.59.95)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2200. 9-[2-(R)-[[BIS[(ISOPROPOXYCARBONYL)OXY- METHOXY]-
PHOSPHINOYL]METHOXY]-PROPYL]ADENINE FUMARATE
(1:1).

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.02 9-[2-(R)-
[[Bis[(isopropoxy-
carbonyl)oxymeth
oxy]-
phosphinoyl]metho
xy]-
propyl]adenine
fumarate (1:1)
(CAS No. 202138-
50-9) (provided
for in subheading
2933.59.95)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2201. (R)-9-(2-PHOSPHONOMETHOXYPROPYL)ADE- NINE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.03 (R)-9-(2-Phosphono-
methoxypropyl)ad
enine (CAS No.
147127-20-6)
(provided for in
subheading
2933.59.95)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2202. (R)-1,3-DIOXOLAN-2-ONE, 4-METHYL-.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.04 (R)-1,3-Dioxolan-2-
one, 4-methyl-
(CAS No. 16606-55-
6) (provided for
in subheading
2920.90.50)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2203. 9-(2-HYDROXYETHYL)ADENINE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.05 9-(2-
Hydroxyethyl)aden
ine (CAS No. 707-
99-3) (provided
for in subheading
2933.59.95)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2204. (R)-9H-PURINE-9-ETHANOL, 6-AMINO--
METHYL-.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.06 (R)-9H-Purine-9-
ethanol, 6-amino-
-methyl-
(CAS No. 14047-28-
0) (provided for
in subheading
2933.59.95)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2205. CHLOROMETHYL-2-PROPYL CARBONATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.07 Chloromethyl-2-
propyl carbonate
(CAS No. 35180-01-
9) (provided for
in subheading
2920.90.50)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2206. (R)-1,2-PROPANEDIOL, 3-CHLORO-.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.08 (R)-1,2-
Propanediol, 3-
chloro- (CAS No.
57090-45-6)
(provided for in
subheading
2905.50.60)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2207. OXIRANE, (S)-((TRIPHENYLMETHOXY)METHYL)-.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.09 Oxirane, (S)-
((triphenylmethox
y)methyl)- (CAS
No. 129940-50-7)
(provided for in
subheading
2910.90.20)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2208. CHLOROMETHYL PIVALATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.10 Chloromethyl
pivalate (CAS No.
18997-19-8)
(provided for in
subheading
2915.90.50)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2209. DIETHYL (((P-TOLUENESULFONYL)OXY)-
METHYL)PHOSPHONATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S781]]

`` 9902.33.11 Diethyl (((p-
toluenesulfonyl)o
xy)-
methyl)phosphonat
e (CAS No. 31618-
90-3) (provided
for in subheading
2931.00.30)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2210. BETA HYDROXYALKYLAMIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.38.25 N,N,N',N'-Tetrakis-
(2-hydroxyethyl)-
hexane diamide
(beta
hydroxyalkylamide
) (CAS No. 6334-
25-4) (provided
for in subheading
3824.90.90)...... Free No change No change On or before 12/
31/2001 '
'.

SEC. 2211. GRILAMID TR90.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.39.12 Dodecanedioic
acid, polymer
with 4,4^{1-
methylenebis (2-
methylcyclohexana
mine) (CAS No.
163800-66-6)
(provided for in
subheading
3908.90.70)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2212. IN-W4280.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.51 2,4-Dichloro-5-
hydroxy-
phenylhydrazine
(CAS No. 39807-21-
1) (provided for
in subheading
2928.00.25)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2213. KL540.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.54 Methyl 4-
trifluoromethoxyp
henyl-N-
(chlorocarbonyl)
carbamate (CAS
No. 173903-15-6)
(provided for in
subheading
2924.29.70)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2214. METHYL THIOGLYCOLATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.55 Methyl
thioglycolate
(CAS No. 2365-48-
2) (provided for
in subheading
2930.90.90)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2215. DPX-E6758.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.59 Phenyl (4,6-
dimethoxy-
pyrimidin-2-yl)
carbamate (CAS
No. 89392-03-0)
(provided for in
subheading
2933.59.70)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2216. ETHYLENE, TETRAFLUORO COPOLYMER WITH ETHYLENE
(ETFE).

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.68 Ethylene-
tetrafluoro
ethylene
copolymer (ETFE)
(provided for in
subheading
3904.69.50)...... 3.3% No change No change On or before 12/
31/2001
''
.

SEC. 2217. 3-MERCAPTO-D-VALINE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.66 3-Mercapto-D-
valine (CAS No.
52-67-5)
(provided for in
subheading
2930.90.45)...... Free No change No change On or before 12/
31/2001 ''
.

SEC. 2218. P-ETHYLPHENOL.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.31.21 p-Ethylphenol (CAS
No. 123-07-9)
(provided for in
subheading
2907.19.20)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2219. PANTERA.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

[[Page S782]]

`` 9902.29.09 (+/-)-
Tetrahydrofurfury
l (R)-2[4-(6-
chloroquinoxalin-
2-yloxy)phenoxy]
propanoate (CAS
No. 119738-06-6)
(provided for in
subheading
2909.30.40) and
any mixtures
containing such
compound
(provided for in
subheading
3808.30)......... Free No change No change On or before 12/
31/2001
''
.

SEC. 2220. P-NITROBENZOIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.70 p-Nitrobenzoic
acid (CAS No. 62-
23-7) (provided
for in subheading
2916.39.45)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2221. P-TOLUENESULFONAMIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.32.95 p-
Toluenesulfonamid
e (CAS No. 70-55-
3) (provided for
in subheading
2935.00.95)...... Free No change No change On or before 12/
31/2001

SEC. 2222. POLYMERS OF TETRAFLUOROETHYLENE,
HEXAFLUOROPROPYLENE, AND VINYLIDENE FLUORIDE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.39.04 Polymers of
tetrafluoroethyle
ne (provided for
in subheading
3904.61.00),
hexafluoropropyle
ne and vinylidene
fluoride
(provided for in
subheading
3904.69.50)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2223. METHYL 2-[[[[[4-(DIMETHYLAMINO)-6-(2,2,2- TRI-
FLUOROETHOXY)-1,3,5-TRIAZIN-2-YL]AMINO]-
CARBONYL]AMINO]SULFONYL]-3-METHYL- BENZOATE
(TRIFLUSULFURON METHYL).

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.38.11 Methyl 2-[[[[[4-
(dimethylamino)-6-
(2,2,2-
trifluoroethoxy)-
1,3,5-triazin-2-
yl]amino]carbonyl
]-
amino]sulfonyl]-3-
methylbenzoate
(triflusulfuron
methyl) in
mixture with
application
adjuvants. (CAS
No. 126535-15-7)
(provided for in
subheading
3808.30.15)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2224. CERTAIN MANUFACTURING EQUIPMENT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new headings:

`` 9902.84.79 Calendaring or
other rolling
machines for
rubber to be used
in the production
of radial tires
designed for off-
the-highway use
and with a rim
measuring 86 cm
or more in
diameter
(provided for in
subheading
4011.20.10 or
subheading
4011.91.50 or
subheading
4011.99.40),
numerically
controlled, or
parts thereof
(provided for in
subheading
8420.10.90,
8420.91.90 or
8420.99.90) and
material holding
devices or
similar
attachments
thereto.......... Free No change No change On or before 12/
31/2001
9902.84.81 Shearing machines
to be used to cut
metallic tissue
for use in the
production of
radial tires
designed for off-
the-highway use
and with a rim
measuring 86 cm
or more in
diameter
(provided for in
subheading
4011.20.10 or
subheading
4011.91.50 or
subheading
4011.99.40),
numerically
controlled, or
parts thereof
(provided for in
subheading
8462.31.00 or
subheading
8466.94.85)...... Free No change No change On or before 12/
31/2001

[[Page S783]]

9902.84.83 Machine tools for
working wire of
iron or steel to
be used in the
production of
radial tires
designed for off-
the-highway use
and with a rim
measuring 86 cm
or more in
diameter
(provided for in
subheading
4011.20.10 or
subheading
4011.91.50 or
subheading
4011.99.40),
numerically
controlled, or
parts thereof
(provided for in
subheading
8463.30.00 or
8466.94.85)...... Free No change No change On or before 12/
31/2001
9902.84.85 Extruders to be
used in the
production of
radial tires
designed for off-
the-highway use
and with a rim
measuring 86 cm
or more in
diameter
(provided for in
subheading
4011.20.10 or
subheading
4011.91.50 or
subheading
4011.99.40),
numerically
controlled, or
parts thereof
(provided for in
subheading
8477.20.00 or
8477.90.85)...... Free No change No change On or before 12/
31/2001
9902.84.87 Machinery for
molding,
retreading, or
otherwise forming
uncured,
unvulcanized
rubber to be used
in the production
of radial tires
designed for off-
the-highway use
and with a rim
measuring 86 cm
or more in
diameter
(provided for in
subheading
4011.20.10 or
subheading
4011.91.50 or
subheading
4011.99.40),
numerically
controlled, or
parts thereof
(provided for in
subheading
8477.51.00 or
8477.90.85)...... Free No change No change On or before 12/
31/2001
9902.84.89 Sector mold press
machines to be
used in the
production of
radial tires
designed for off-
the-highway use
and with a rim
measuring 86 cm
or more in
diameter
(provided for in
subheading
4011.20.10 or
subheading
4011.91.50 or
subheading
4011.99.40),
numerically
controlled, or
parts thereof
(provided for in
subheading
8477.51.00 or
subheading
8477.90.85)...... Free No change No change On or before 12/
31/2001
9902.84.91 Sawing machines to
be used in the
production of
radial tires
designed for off-
the-highway use
and with a rim
measuring 86 cm
or more in
diameter
(provided for in
subheading
4011.20.10 or
subheading
4011.91.50 or
subheading
4011.99.40),
numerically
controlled, or
parts thereof
(provided for in
subheading
8465.91.00 or
subheading
8466.92.50)...... Free No change No change On or before 12/
31/2001 '
'.

SEC. 2225. TEXTURED ROLLED GLASS SHEETS.

Subchapter II of chapter 99 is amended by striking heading
9902.70.03 and inserting the following:

`` 9902.70.03 Rolled glass in
sheets, yellow-
green in color,
not finished or
edged-worked,
textured on one
surface, suitable
for incorporation
in cooking
stoves, ranges,
or ovens
described in
subheadings
8516.60.40
(provided for in
subheading
7003.12.00 or
7003.19.00)...... Free No change No change On or before 12/
31/2001
''
.

SEC. 2226. CERTAIN HIV DRUG SUBSTANCES.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new headings:

`` 9902.32.43 (S)-N-tert-Butyl-
1,2,3,4-
tetrahydro-3-
isoquinoline
carboxamide
hydrochloride
salt (CAS No.
149057-17-0)(prov
ided for in
subheading
2933.40.60)...... Free No change No change On or before 6/
30/99

[[Page S784]]

9902.32.44 (S)-N-tert-Butyl-
1,2,3,4-
tetrahydro-3-
isoquinoline
carboxamide
sulfate salt (CAS
No. 186537-30-
4)(provided for
in subheading
2933.40.60)...... Free No change No change On or before 6/
30/99
9902.32.45 (3S)-1,2,3,4-
Tetrahydroisoquin
oline-3-
carboxylic acid
(CAS No. 74163-81-
8)(provided for
in subheading
2933.40.60)...... Free No change No change On or before 6/
30/99
''.

SEC. 2227. RIMSULFURON.

(a) In General.--Subchapter II of chapter 99 is amended by
inserting in numerical sequence the following new heading:

`` 9902.33.60 N-[[(4,6-Dimethoxy-
2-
pyrimidinyl)amino
] carbonyl]-3-
(ethylsulfonyl)-2-
pyridinesulfonami
de (CAS No.
122931-48-0)
(provided for in
subheading
2935.00.75)...... 7.3% No change No change On or before 12/
31/99
''.

(b) Rate for 2000.--Heading 9902.33.60, as added by
subsection (a), is amended--
(1) by striking ``7.3%'' and inserting ``Free''; and
(2) by striking ``12/31/99'' and inserting ``12/31/2000''.
(c) Effective Date for Adjustment.--The amendments made by
subsection (b) apply to goods entered, or withdrawn from
warehouse for consumption, after December 31, 1999.

SEC. 2228. CARBAMIC ACID (V-9069).

(a) In General.--Subchapter II of chapter 99 is amended by
inserting in numerical sequence the following new heading:

`` 9902.33.61 ((3-
((Dimethylamino)c
arbonyl)-2-
pyridinyl)sulfony
l) carbamic acid,
phenyl ester (CAS
No. 112006-94-7)
(provided for in
subheading
2935.00.75)...... 8.3% No change No change On or before 12/
31/99

(b) Rate Adjustment for 2000.--Heading 9902.33.61, as added
by subsection (a), is amended--
(1) by striking ``8.3%'' and inserting ``7.6%''; and
(2) by striking ``12/31/99'' and inserting ``12/31/2000''.
(c) Effective Date for Adjustment.--The amendments made by
subsection (b) apply to goods entered, or withdrawn from
warehouse for consumption, after December 31, 1999.

SEC. 2229. DPX-E9260.

(a) In General.--Subchapter II of chapter 99 is amended by
inserting in numerical sequence the following new heading:

`` 9902.33.63 3-(Ethylsulfonyl)-
2-
pyridinesulfonami
de (CAS No.
117671-01-9)
(provided for in
subheading
2935.00.75)...... 6% No change No change On or before 12/
31/99

(b) Rate Adjustment.--Heading 9902.33.63, as added by
subsection (a), is amended--
(1) by striking ``6%'' and inserting ``5.3%''; and
(2) by striking ``12/31/99'' and inserting ``12/31/2000''.
(c) Effective Dates.--
(1) In general.--The amendment made by subsection (a)
applies to goods entered, or withdrawn from warehouse for
consumption, on or after the 15th day after the date of
enactment of this Act.
(2) Adjustment.--The amendments made by subsection (b)
apply to goods entered, or withdrawn from warehouse for
consumption, after December 31, 1999.

SEC. 2230. ZIRAM.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.38.28 Ziram (provided
for in
subheading
3808.20.28).... Free No change No change On or before 12/
31/2001 ''
.

SEC. 2231. FERROBORON.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.72.02 Ferroboron to be
used for
manufacturing
amorphous metal
strip (provided
for in
subheading
7202.99.50).... Free No change No change On or before 12/
31/2001

SEC. 2232. ACETIC ACID, [[2-CHLORO-4-FLUORO-5-[(TETRA- HYDRO-
3-OXO-1H,3H-[1,3,4]THIADIAZOLO[3,4-A]PYRIDAZIN-
1-YLIDENE)AMINO]PHENYL]- THIO]-, METHYL ESTER.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.66 Acetic acid, [[2-
chloro-4-fluoro-5-
[(tetrahydro-3-
oxo-1H,3H-
[1,3,4]thiadiazol
o- [3,4-
a]pyridazin-1-
ylidene)amino]phe
nyl]thio]-,
methyl ester (CAS
No. 117337-19-6)
(provided for in
subheading
2934.90.15)...... Free No change No change On or before 12/
31/2001

[[Page S785]]

SEC. 2233. PENTYL[2-CHLORO-5-(CYCLOHEX-1-ENE-1,2-DI-
CARBOXIMIDO)-4-FLUOROPHENOXY]ACETATE.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.66 Pentyl[2-chloro-5-
(cyclohex-1-ene-
1,2-
dicarboximido)-4-
fluorophenoxy]ace
tate (CAS No.
87546-18-7)
(provided for in
subheading
2925.19.40)...... Free No change No change On or before 12/
31/2001

SEC. 2234. BENTAZON (3-ISOPROPYL)-1H-2,1,3-BENZO-THIADIAZIN-
4(3H)-ONE-2,2-DIOXIDE).

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.29.67 Bentazon (3-
Isopropyl)-1H-
2,1,3-
benzothiadiazin-
4(3H)-one-2,2-
dioxide) (CAS No.
50723-80-3)
(provided for in
subheading
2934.90.11)...... 5.0% No change No change On or before 12/
31/2001
''.

SEC. 2235. CERTAIN HIGH-PERFORMANCE LOUDSPEAKERS NOT MOUNTED
IN THEIR ENCLOSURES.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.85.20 Loudspeakers not
mounted in their
enclosures
(provided for in
subheading
8518.29.80), the
foregoing which
meet a
performance
standard of not
more than 1.5 dB
for the average
level of 3 or
more octave
bands, when such
loudspeakers are
tested in a
reverberant
chamber.......... Free No change No change On or before 12/
31/2001
''.

SEC. 2236. PARTS FOR USE IN THE MANUFACTURE OF CERTAIN HIGH-
PERFORMANCE LOUDSPEAKERS.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.85.21 Parts for use in
the manufacture
of loudspeakers
of a type
described in
subheading
9902.85.20
(provided for in
subheading
8518.90.80)...... Free No change No change On or before 12/
31/2001
''.

SEC. 2237. 5-TERT-BUTYL-ISOPHTHALIC ACID.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.12 5-tert-Butyl-iso-
phthalic acid
(CAS No. 2359-
09-3) (provided
for in
subheading
2917.39.70).... Free No change No change On or before 12/
31/2001
''
.

SEC. 2238. CERTAIN POLYMER.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.39.07 A polymer of the
following
monomers: 1,4-
benzenedicarboxyl
ic acid, dimethyl
ester (dimethyl
terephthalate)
(CAS No. 120-61-
6); 1,3-
Benzenedicarboxyl
ic acid, 5-sulfo-
, 1,3-dimethyl
ester, sodium
salt (sodium
dimethyl
sulfoisophthalate
) (CAS No. 3965-
55-7); 1,2-
ethanediol
(ethylene glycol)
(CAS No. 107-21-
1); and 1,2-
propanediol
(propylene
glycol) (CAS No.
57-55-6); with
terminal units
from 2-(2-
hydroxyethoxy)
ethanesulfonic
acid, sodium salt
(CAS No. 53211-00-
0) (provided for
in subheading
3907.99.00)...... Free No change No change On or before 12/
31/2001

SEC. 2239. 2-(4-CHLOROPHENYL)-3-ETHYL-2, 5-DIHYDRO-5-OXO-4-
PYRIDAZINE CARBOXYLIC ACID, POTASSIUM SALT.

Subchapter II of chapter 99 is amended by inserting in
numerical sequence the following new heading:

`` 9902.33.16 2-(4-Chlorophenyl)-
3-ethyl-2, 5-
dihydro-5-oxo-4-
pyridazine
carboxylic acid,
potassium salt
(CAS No. 82697-71-
0) (provided for
in subheading
2933.90.79)...... Free No change No change On or before 12/
31/2001

[[Page S786]]

CHAPTER 3--EFFECTIVE DATE

SEC. 2301. EFFECTIVE DATE.

Except as otherwise provided in this subtitle, the
amendments made by this subtitle apply to goods entered, or
withdrawn from warehouse for consumption, after the date that
is 15 days after the date of enactment of this Act.
Subtitle B--Other Trade Provisions

SEC. 2401. EXTENSION OF UNITED STATES INSULAR POSSESSION
PROGRAM.

(a) In General.--The additional U.S. notes to chapter 71 of
the Harmonized Tariff Schedule of the United States are
amended by adding at the end the following new note:
``3.(a) Notwithstanding any provision in additional U.S.
note 5 to chapter 91, any article of jewelry provided for in
heading 7113 which is the product of the Virgin Islands,
Guam, or American Samoa (including any such article which
contains any foreign component) shall be eligible for the
benefits provided in paragraph (h) of additional U.S. note 5
to chapter 91, subject to the provisions and limitations of
that note and of paragraphs (b), (c), and (d) of this note.
``(b) Nothing in this note shall result in an increase or a
decrease in the aggregate amount referred to in paragraph
(h)(iii) of, or the quantitative limitation otherwise
established pursuant to the requirements of, additional U.S.
note 5 to chapter 91.
``(c) Nothing in this note shall be construed to permit a
reduction in the amount available to watch producers under
paragraph (h)(iv) of additional U.S. note 5 to chapter 91.
``(d) The Secretary of Commerce and the Secretary of the
Interior shall issue such regulations, not inconsistent with
the provisions of this note and additional U.S. note 5 to
chapter 91, as the Secretaries determine necessary to carry
out their respective duties under this note. Such regulations
shall not be inconsistent with substantial transformation
requirements but may define the circumstances under which
articles of jewelry shall be deemed to be `units' for
purposes of the benefits, provisions, and limitations of
additional U.S. note 5 to chapter 91.
``(e) Notwithstanding any other provision of law, during
the 2-year period beginning 45 days after the date of the
enactment of this note, any article of jewelry provided for
in heading 7113 that is assembled in the Virgin Islands,
Guam, or American Samoa shall be treated as a product of the
Virgin Islands, Guam, or American Samoa for purposes of this
note and General Note 3(a)(iv) of this Schedule.''.
(b) Conforming Amendment.--General Note 3(a)(iv)(A) of the
Harmonized Tariff Schedule of the United States is amended by
inserting ``and additional U.S. note 3(e) of chapter 71,''
after ``Tax Reform Act of 1986,''.
(c) Effective Date.--The amendments made by this section
take effect 45 days after the date of the enactment of this
Act.

SEC. 2402. TARIFF TREATMENT FOR CERTAIN COMPONENTS OF
SCIENTIFIC INSTRUMENTS AND APPARATUS.

(a) In General.--U.S. note 6 of subchapter X of chapter 98
of the Harmonized Tariff Schedule of the United States is
amended in subdivision (a) by adding at the end the following
new sentence: ``The term `instruments and apparatus' under
subheading 9810.00.60 includes separable components of an
instrument or apparatus listed in this subdivision that are
imported for assembly in the United States in such instrument
or apparatus where the instrument or apparatus, due to its
size, cannot be feasibly imported in its assembled state.''.
(b) Application of Domestic Equivalency Test to
Components.--U.S. note 6 of subchapter X of chapter 98 of the
Harmonized Tariff Schedule of the United States is amended--
(1) by redesignating subdivisions (d) through (f) as
subdivisions (e) through (g), respectively; and
(2) by inserting after subdivision (c) the following:
``(d)(i) If the Secretary of Commerce determines under this
U.S. note that an instrument or apparatus is being
manufactured in the United States that is of equivalent
scientific value to a foreign-origin instrument or apparatus
for which application is made (but which, due to its size,
cannot be feasibly imported in its assembled state), the
Secretary shall report the findings to the Secretary of the
Treasury and to the applicant institution, and all components
of such foreign-origin instrument or apparatus shall remain
dutiable.
``(ii) If the Secretary of Commerce determines that the
instrument or apparatus for which application is made is not
being manufactured in the United States, the Secretary is
authorized to determine further whether any component of such
instrument or apparatus of a type that may be purchased,
obtained, or imported separately is being manufactured in the
United States and shall report the findings to the Secretary
of the Treasury and to the applicant institution, and any
component found to be domestically available shall remain
dutiable.
``(iii) Any decision by the Secretary of the Treasury which
allows for duty-free entry of a component of an instrument or
apparatus which, due to its size cannot be feasibly imported
in its assembled state, shall be effective for a specified
maximum period, to be determined in consultation with the
Secretary of Commerce, taking into account both the
scientific needs of the importing institution and the
potential for development of comparable domestic
manufacturing capacity.''.
(c) Modifications of Regulations.--The Secretary of the
Treasury and the Secretary of Commerce shall make such
modifications to their joint regulations as are necessary to
carry out the amendments made by this section.
(d) Effective Date.--The amendments made by this section
shall take effect beginning 120 days after the date of the
enactment of this Act.

SEC. 2403. LIQUIDATION OR RELIQUIDATION OF CERTAIN ENTRIES.

(a) Liquidation or Reliquidation of Entries.--
Notwithstanding sections 514 and 520 of the Tariff Act of
1930 (19 U.S.C. 1514 and 1520), or any other provision of
law, the United States Customs Service shall, not later than
90 days after the date of the enactment of this
Act, liquidate or reliquidate those entries made at Los
Angeles, California, and New Orleans, Louisiana, which are
listed in subsection (c), in accordance with the final
decision of the International Trade Administration of the
Department of Commerce for shipments entered between
October 1, 1984, and December 14, 1987 (case number A-274-
001).
(b) Payment of Amounts Owed.--Any amounts owed by the
United States pursuant to the liquidation or reliquidation of
an entry under subsection (a) shall be paid by the Customs
Service within 90 days after such liquidation or
reliquidation.
(c) Entry List.--The entries referred to in subsection (a)
are the following:

Entry number Date of entry Port

322 00298563 12/11/86 Los Angeles, California
------------------------------------------------------------------------
322 00300567 12/11/86 Los Angeles, California
------------------------------------------------------------------------
86-2909242 9/2/86 New Orleans, Louisiana
------------------------------------------------------------------------
87-05457388 1/9/87 New Orleans, Louisiana

SEC. 2404. DRAWBACK AND REFUND ON PACKAGING MATERIAL.

(a) In General.--Section 313(q) of the Tariff Act of 1930
(19 U.S.C. 1313(q)) is further amended--
(1) by striking ``Packaging material'' and inserting the
following:
``(1) In general.--Packaging material''; and
(2) by adding at the end the following:
``(2) Additional eligibility.--Packaging material produced
in the United States, which is used by the manufacturer or
any other person on or for articles which are exported or
destroyed under subsection (a) or (b), shall be eligible
under such subsection for refund, as drawback, of 99 percent
of any duty, tax, or fee imposed on the importation of such
material used to manufacture or produce the packaging
material.''.
(b) Effective Date.--The amendment made by this section
applies with respect to goods entered, or withdrawn from
warehouse for consumption, on or after the 15th day after the
date of the enactment of this Act.

SEC. 2405. INCLUSION OF COMMERCIAL IMPORTATION DATA FROM
FOREIGN-TRADE ZONES UNDER THE NATIONAL CUSTOMS
AUTOMATION PROGRAM.

Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) is
amended by adding at the end the following:
``(c) Foreign-Trade Zones.--Not later than January 1, 2000,
the Secretary shall provide for the inclusion of commercial
importation data from foreign-trade zones under the
Program.''.

SEC. 2406. LARGE YACHTS IMPORTED FOR SALE AT UNITED STATES
BOAT SHOWS.

(a) In General.--The Tariff Act of 1930 (19 U.S.C. 1304 et
seq.) is amended by inserting after section 484a the
following:

``SEC. 484B. DEFERRAL OF DUTY ON LARGE YACHTS IMPORTED FOR
SALE AT UNITED STATES BOAT SHOWS.

``(a) In General.--Notwithstanding any other provision of
law, any vessel meeting the definition of a large yacht as
provided in subsection (b) and which is otherwise dutiable
may be imported without the payment of duty if imported with
the intention to offer for sale at a boat show in the United
States. Payment of duty shall be deferred, in accordance with
this section, until such large yacht is sold.
``(b) Definition.--As used in this section, the term `large
yacht' means a vessel that exceeds 79 feet in length, is used
primarily for recreation or pleasure, and has been previously
sold by a manufacturer or dealer to a retail consumer.
``(c) Deferral of Duty.--At the time of importation of any
large yacht, if such large yacht is imported for sale at a
boat show in the United States and is otherwise dutiable,
duties shall not be assessed and collected if the importer of
record--
``(1) certifies to the Customs Service that the large yacht
is imported pursuant to this section for sale at a boat show
in the United States; and
``(2) posts a bond, which shall have a duration of 6 months
after the date of importation, in an amount equal to twice
the amount of duty on the large yacht that would otherwise be
imposed under subheading 8903.91.00 or 8903.92.00 of the
Harmonized Tariff Schedule of the United States.
``(d) Procedures Upon Sale.--
``(1) Deposit of duty.--If any large yacht (which has been
imported for sale at a boat show in the United States with
the deferral of duties as provided in this section) is sold

[[Page S787]]

within the 6-month period after importation--
``(A) entry shall be completed and duty (calculated at the
applicable rates provided for under subheading 8903.91.00 or
8903.92.00 of the Harmonized Tariff Schedule of the United
States and based upon the value of the large yacht at the
time of importation) shall be deposited with the Customs
Service; and
``(B) the bond posted as required by subsection (c)(2)
shall be returned to the importer.
``(e) Procedures Upon Expiration of Bond Period.--
``(1) In general.--If the large yacht entered with deferral
of duties is neither sold nor exported within the 6-month
period after importation--
``(A) entry shall be completed and duty (calculated at the
applicable rates provided for under subheading 8903.91.00 or
8903.92.00 of the Harmonized Tariff Schedule of the United
States and based upon the value of the large yacht at the
time of importation) shall be deposited with the Customs
Service; and
``(B) the bond posted as required by subsection (c)(2)
shall be returned to the importer.
``(2) Additional requirements.--No extensions of the bond
period shall be allowed. Any large yacht exported in
compliance with the bond period may not be reentered for
purposes of sale at a boat show in the United States (in
order to receive duty deferral benefits) for a period of 3
months after such exportation.
``(f) Regulations.--The Secretary of the Treasury is
authorized to make such rules and regulations as may be
necessary to carry out the provisions of this section.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to any large yacht imported into the
United States after the date that is 15 days after the date
of the enactment of this Act.

SEC. 2407. REVIEW OF PROTESTS AGAINST DECISIONS OF CUSTOMS
SERVICE.

Section 515(a) of the Tariff Act of 1930 (19 U.S.C.
1515(a)) is amended by inserting after the third sentence the
following: ``Within 30 days from the date an application for
further review is filed, the appropriate customs officer
shall allow or deny the application and, if allowed, the
protest shall be forwarded to the customs officer who will be
conducting the further review.''.

SEC. 2408. ENTRIES OF NAFTA-ORIGIN GOODS.

(a) Refund of Merchandise Processing Fees.--Section 520(d)
of the Tariff Act of 1930 (19 U.S.C. 1520(d)) is amended in
the matter preceding paragraph (1) by inserting ``(including
any merchandise processing fees)'' after ``excess duties''.
(b) Protest Against Decision of Customs Service Relating to
NAFTA Claims.--Section 514(a)(7) of such Act (19 U.S.C.
1514(a)(7)) is amended by striking ``section 520(c)'' and
inserting ``subsection (c) or (d) of section 520''.
(c) Effective Date.--The amendments made by this section
apply with respect to goods entered, or withdrawn from
warehouse for consumption, on or after the 15th day after the
date of the enactment of this Act.

SEC. 2409. TREATMENT OF INTERNATIONAL TRAVEL MERCHANDISE HELD
AT CUSTOMS-APPROVED STORAGE ROOMS.

Section 557(a)(1) of the Tariff Act of 1930 (19 U.S.C.
1557(a)(1)) is amended in the first sentence by inserting
``(including international travel merchandise)'' after ``Any
merchandise subject to duty''.

SEC. 2410. EXCEPTION TO 5-YEAR REVIEWS OF COUNTERVAILING DUTY
OR ANTIDUMPING DUTY ORDERS.

Section 751(c) of the Tariff Act of 1930 (19 U.S.C.
1675(c)) is amended by adding at the end the following:
``(7) Exclusions from computations.--
``(A) In general.--Subject to subparagraph (B), there shall
be excluded from the computation of the 5-year period
described in paragraph (1) and the periods described in
paragraph (6) any period during which the importation of the
subject merchandise is prohibited on account of the
imposition, under the International Emergency Economic Powers
Act or other provision of law, of sanctions by the United
States against the country in which the subject merchandise
originates.
``(B) Application of exclusion.--Subparagraph (A) shall
apply only with respect to subject merchandise which
originates in a country that is not a WTO member.''.

SEC. 2411. WATER RESISTANT WOOL TROUSERS.

Notwithstanding section 514 of the Tariff Act of 1930 or
any other provision of law, upon proper request filed with
the Customs Service within 180 days after the date of
enactment of this Act, any entry or withdrawal from warehouse
for consumption--
(1) that was made after December 31, 1988, and before
January 1, 1995; and
(2) that would have been classifiable under subheading
6203.41.05 or 6204.61.10 of the Harmonized Tariff Schedule of
the United States and would have had a lower rate of duty, if
such entry or withdrawal had been made on January 1, 1995,
shall be liquidated or reliquidated as if such entry or
withdrawal had been made on January 1, 1995.

SEC. 2412. REIMPORTATION OF CERTAIN GOODS.

(a) In General.--Subchapter I of chapter 98 is amended by
inserting in numerical sequence the following new heading:

`` 9801.00.26 Articles,
previously
imported, with
respect to which
the duty was paid
upon such previous
importation, if
(1) exported
within 3 years
after the date of
such previous
importation, (2)
sold for
exportation and
exported to
individuals for
personal use, (3)
reimported without
having been
advanced in value
or improved in
condition by any
process of
manufacture or
other means while
abroad, (4)
reimported as
personal returns
from those
individuals,
whether or not
consolidated with
other personal
returns prior to
reimportation, and
(5) reimported by
or for the account
of the person who
exported them from
the United States
within 1 year of
such exportation.. Free Free
''

(b) Effective Date.--The amendment made by subsection (a)
applies to goods described in heading 9801.00.26 of the
Harmonized Tariff Schedule of the United States (as added by
subsection (a)) that are reimported into the United States on
or after the date that is 15 days after the date of enactment
of this Act.

SEC. 2413. TREATMENT OF PERSONAL EFFECTS OF PARTICIPANTS IN
CERTAIN WORLD ATHLETIC EVENTS.

(a) In General.--Subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:

[[Page S788]]

`` 9902.98.08 Any of the
following
articles not
intended for sale
or distribution
to the public:
personal effects
of aliens who are
participants in,
officials of, or
accredited
members of
delegations to,
the 1999
International
Special Olympics,
the 1999 Women's
World Cup Soccer,
the 2001
International
Special Olympics,
the 2002 Salt
Lake City Winter
Olympics, and the
2002 Winter
Paralympic Games,
and of persons
who are immediate
family members of
or servants to
any of the
foregoing
persons;
equipment and
materials
imported in
connection with
the foregoing
events by or on
behalf of the
foregoing persons
or the organizing
committees of
such events;
articles to be
used in
exhibitions
depicting the
culture of a
country
participating in
any such event;
and, if
consistent with
the foregoing,
such other
articles as the
Secretary of
Treasury may
allow............ Free No change Free On or before 12/
31/2002

(b) Taxes and Fees Not To Apply.--The articles described in
heading 9902.98.08 of the Harmonized Tariff Schedule of the
United States (as added by subsection (a)) shall be free of
taxes and fees which may be otherwise applicable.
(c) No Exemption From Customs Inspections.--The articles
described in heading 9902.98.08 of the Harmonized Tariff
Schedule of the United States (as added by subsection (a))
shall not be free or otherwise exempt or excluded from
routine or other inspections as may be required by the
Customs Service.
(d) Effective Date.--The amendment made by this section
applies to articles entered, or withdrawn from warehouse, for
consumption on or after the date of the enactment of this
Act.

SEC. 2414. RELIQUIDATION OF CERTAIN ENTRIES OF THERMAL
TRANSFER MULTIFUNCTION MACHINES.

(a) In General.--Notwithstanding section 514 of the Tariff
Act of 1930 (19 U.S.C. 1514) or any other provision of law
and subject to the provisions of subsection (b), the United
States Customs Service shall, not later than 180 days after
the receipt of the request described in subsection (b),
liquidate or reliquidate each entry described in subsection
(d) containing any merchandise which, at the time of the
original liquidation, was classified under subheading
8517.21.00 of the Harmonized Tariff Schedule of the United
States (relating to indirect electrostatic copiers) or
subheading 9009.12.00 of such Schedule (relating to indirect
electrostatic copiers), at the rate of duty that would have
been applicable to such merchandise if the merchandise had
been liquidated or reliquidated under subheading 8471.60.65
of the Harmonized Tariff Schedule of the United States
(relating to other automated data processing (ADP) thermal
transfer printer units) on the date of entry.
(b) Requests.--Reliquidation may be made under subsection
(a) with respect to an entry described in subsection (d) only
if a request therefor is filed with the Customs Service
within 90 days after the date of enactment of this Act and
the request contains sufficient information to enable the
Customs Service to locate the entry or reconstruct the
entry if it cannot be located.
(c) Payment of Amounts Owed.--Any amounts owed by the
United States pursuant to the liquidation or reliquidation of
an entry under subsection (a) shall be paid not later than
180 days after the date of such liquidation or reliquidation.
(d) Affected Entries.--The entries referred to in
subsection (a), filed at the port of Los Angeles, are as
follows:

------------------------------------------------------------------------
Date of entry Entry number Liquidation date
------------------------------------------------------------------------
01/17/97 112-9638417-3 02/21/97
01/10/97 112-9637684-9 03/07/97
01/03/97 112-9636723-6 04/18/97
01/07/97 112-9637561-9 04/25/97
01/10/97 112-9637686-4 03/07/97
02/21/97 112-9642157-9 09/12/97
02/14/97 112-9641619-9 06/06/97
02/14/97 112-9641693-4 06/06/97
02/21/97 112-9642156-1 09/12/97
02/28/97 112-9643326-9 09/12/97
03/18/97 112-9645336-6 09/19/97
03/21/97 112-9645682-3 09/19/97
03/21/97 112-9645681-5 09/19/97
03/21/97 112-9645698-9 09/19/97
03/14/97 112-9645026-3 09/19/97
03/14/97 112-9645041-2 09/19/97
03/20/97 112-9646075-9 09/19/97
03/14/97 112-9645026-3 09/19/97
04/04/97 112-9647309-1 09/19/97
04/04/97 112-9647312-5 09/19/97
04/04/97 112-9647316-6 09/19/97
04/11/97 112-9300151-5 10/31/97
04/11/97 112-9300287-7 09/26/97
04/11/97 112-9300308-1 02/20/98
04/10/97 112-9300356-0 09/26/97
04/16/97 112-9301387-4 09/26/97
04/22/97 112-9301602-6 09/26/97
04/18/97 112-9301627-3 09/26/97
04/21/97 112-9301615-8 09/26/97
04/25/97 112-9302445-9 10/31/97
04/25/97 112-9302298-2 09/26/97
04/25/97 112-9302205-7 09/26/97
04/04/97 112-9302371-7 09/26/97
05/26/97 112-9305730-1 09/26/97
05/21/97 112-9305527-1 09/26/97
05/30/97 112-9306718-5 09/26/97
05/19/97 112-9304958-9 09/26/97
05/16/97 112-9305030-6 09/26/97
05/07/97 112-9303702-2 09/26/97
05/09/97 112-9303707-1 09/26/97
05/10/97 112-9304256-8 09/26/97
05/31/97 112-9306470-3 09/26/97
05/02/97 112-9302717-1 09/19/97
06/20/97 112-9308793-6 09/26/97
06/18/97 112-9308717-5 09/26/97
06/16/97 112-9308538-5 09/26/97
06/09/97 112-9307568-3 09/26/97
06/06/97 112-9307144-3 09/26/97
------------------------------------------------------------------------

SEC. 2415. RELIQUIDATION OF CERTAIN DRAWBACK ENTRIES AND
REFUND OF DRAWBACK PAYMENTS.

(a) In General.--Notwithstanding sections 514 and 520 of
the Tariff Act of 1930 or any other provision of law, the
Customs Service shall, not later than 180 days after the date
of enactment of this Act, liquidate or reliquidate the
entries described in subsection (b) and any amounts owed by
the United States pursuant to the liquidation or
reliquidation shall be refunded with interest, subject to the
provisions of Treasury Decision 86-126(M) and Customs Service
Ruling No. 224697, dated November 17, 1994.
(b) Entries Described.--The entries described in this
subsection are the following:

Entry number: Date of entry:
855218319........... July 18, 1985
855218429........... August 15, 1985
855218649........... September 13, 1985
866000134........... October 4, 1985
866000257........... November 14, 1985
866000299........... December 9, 1985
866000451........... January 14, 1986
866001052........... February 13, 1986
866001133........... March 7, 1986
866001269........... April 9, 1986
866001366........... May 9, 1986
866001463........... June 6, 1986
866001573........... July 7, 1986
866001586........... July 7, 1986
866001599........... July 7, 1986
866001913........... August 8, 1986
866002255........... September 10, 1986
866002297........... September 23, 1986
03200000010......... October 3, 1986
03200000028......... November 13, 1986
03200000036......... November 26, 1986.

SEC. 2416. CLARIFICATION OF ADDITIONAL U.S. NOTE 4 TO CHAPTER
91 OF THE HARMONIZED TARIFF SCHEDULE OF THE
UNITED STATES.

Additional U.S. note 4 of chapter 91 of the Harmonized
Tariff Schedule of the United States is amended in the matter
preceding subdivision (a), by striking the comma after
``stamping'' and inserting ``(including by means of indelible
ink),''.

SEC. 2417. DUTY-FREE SALES ENTERPRISES.

Section 555(b)(2) of the Tariff Act of 1930 (19 U.S.C.
1555(b)(2)) is amended--
(1) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(2) by adding at the end the following new subparagraph:
``(C) a port of entry, as established under section 1 of
the Act of August 24, 1912 (37

[[Page S789]]

Stat. 434), or within 25 statute miles of a staffed port of
entry if reasonable assurance can be provided that duty-free
merchandise sold by the enterprise will be exported by
individuals departing from the customs territory through an
international airport located within the customs
territory.''.

SEC. 2418. CUSTOMS USER FEES.

(a) Additional Preclearance Activities.--Section
13031(f)(3)(A)(iii) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(3)(A)(iii)) is
amended to read as follows:
``(iii) to the extent funds remain available after making
reimbursements under clause (ii), in providing salaries for
up to 50 full-time equivalent inspectional positions to
provide preclearance services.''.
(b) Collection of Fees for Passengers Aboard Commercial
Vessels.--Section 13031 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c) is amended--
(1) in subsection (a), by amending paragraph (5) to read as
follows:
``(5)(A) Subject to subparagraph (B), for the arrival of
each passenger aboard a commercial vessel or commercial
aircraft from a place outside the United States (other than a
place referred to in subsection (b)(1)(A)(i) of this
section), $5.
``(B) For the arrival of each passenger aboard a commercial
vessel from a place referred to in subsection (b)(1)(A)(i) of
this section, $1.75''; and
(2) in subsection (b)(1)(A), by striking ``(A) No fee'' and
inserting ``(A) Except as provided in subsection (a)(5)(B) of
this section, no fee''.
(c) Use of Merchandise Processing Fees for Automated
Commercial Systems.--Section 13031(f) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f))
is amended by adding at the end the following:
``(6) Of the amounts collected in fiscal year 1999 under
paragraphs (9) and (10) of subsection (a), $50,000,000 shall
be available to the Customs Service, subject to
appropriations Acts, for automated commercial systems.
Amounts made available under this paragraph shall remain
available until expended.''.
(d) Advisory Committee.--Section 13031 of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is
amended by adding at the end the following:
``(k) Advisory Committee.--The Commissioner of Customs
shall establish an advisory committee whose membership shall
consist of representatives from the airline, cruise ship, and
other transportation industries who may be subject to fees
under subsection (a). The advisory committee shall not be
subject to termination under section 14 of the Federal
Advisory Committee Act. The advisory committee shall meet on
a periodic basis and shall advise the Commissioner on issues
related to the performance of the inspectional services of
the United States Customs Service. Such advice shall include,
but not be limited to, such issues as the time periods during
which such services should be performed, the proper number
and deployment of inspection officers, the level of fees, and
the appropriateness of any proposed fee. The Commissioner
shall give consideration to the views of the advisory
committee in the exercise of his or her duties.''.
(e) National Customs Automation Test Regarding
Reconciliation.--Section 505(c) of the Tariff Act of 1930 (19
U.S.C. 1505(c)) is amended by adding at the end the
following: ``For the period beginning on October 1, 1998, and
ending on the date on which the `Revised National Customs
Automation Test Regarding Reconciliation' of the Customs
Service is terminated, or October 1, 2000, whichever occurs
earlier, the Secretary may prescribe an alternative mid-point
interest accounting methodology, which may be employed by the
importer, based upon aggregate data in lieu of accounting for
such interest from each deposit data provided in this
subsection.''.
(f) Effective Date.--The amendments made by this section
shall take effect 30 days after the date of the enactment of
this Act.

SEC. 2419. DUTY DRAWBACK FOR METHYL TERTIARY-BUTYL ETHER
(``MTBE'').

(a) In General.--Section 313(p)(3)(A)(i)(I) of the Tariff
Act of 1930 (19 U.S.C. 1313(p)(3)(A)(i)(I)) is amended by
striking ``and 2902'' and inserting ``2902, and 2909.19.14''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act,
and shall apply to drawback claims filed on and after such
date.

SEC. 2420. SUBSTITUTION OF FINISHED PETROLEUM DERIVATIVES.

(a) In General.--Section 313(p)(1) of the Tariff Act of
1930 (19 U.S.C. 1313(p)(1)) is amended in the matter
following subparagraph (C) by striking ``the amount of the
duties paid on, or attributable to, such qualified article
shall be refunded as drawback to the drawback claimant.'' and
inserting ``drawback shall be allowed as described in
paragraph (4).''.
(b) Requirements.--Section 313(p)(2) of such Act (19 U.S.C.
1313(p)(2)) is amended--
(1) in subparagraph (A)--
(A) in clauses (i), (ii), and (iii), by striking ``the
qualified article'' each place it appears and inserting ``a
qualified article''; and
(B) in clause (iv), by striking ``an imported' and
inserting ``a''; and
(2) in subparagraph (G), by inserting ``transferor,'' after
``importer,''.
(c) Qualified Article Defined, Etc.--Section 313(p)(3) of
such Act (19 U.S.C. 1313(p)(3)) is amended--
(1) in subparagraph (A)--
(A) in clause (i)(II), by striking ``liquids, pastes,
powders, granules, and flakes'' and inserting ``the primary
forms provided under Note 6 to chapter 39 of the Harmonized
Tariff Schedule of the United States''; and
(B) in clause (ii)--
(i) in subclause (I) by striking ``or'' at the end;
(ii) in subclause (II) by striking the period and inserting
``, or''; and
(iii) by adding after subclause (II) the following:

``(III) an article of the same kind and quality as
described in subparagraph (B), or any combination thereof,
that is transferred, as so certified in a certificate of
delivery or certificate of manufacture and delivery in a
quantity not greater than the quantity of articles purchased
or exchanged.

The transferred merchandise described in subclause (III),
regardless of its origin, so designated on the certificate of
delivery or certificate of manufacture and delivery shall be
the qualified article for purposes of this section. A party
who issues a certificate of delivery, or certificate of
manufacture and delivery, shall also certify to the
Commissioner of Customs that it has not, and will not, issue
such certificates for a quantity greater than the amount
eligible for drawback and that appropriate records will be
maintained to demonstrate that fact.'';
(2) in subparagraph (B), by striking ``exported article''
and inserting ``article, including an imported, manufactured,
substituted, or exported article,''; and
(3) in the first sentence of subparagraph (C), by striking
``such article.'' and inserting ``either the qualified
article or the exported article.''.
(d) Limitation on Drawback.--Section 313(p)(4)(B) of such
Act (19 U.S.C. 1313(p)(4)(B)) is amended by inserting before
the period at the end the following: ``had the claim
qualified for drawback under subsection (j)''.
(e) Effective Date.--The amendments made by this section
shall take effect as if included in the amendment made by
section 632(a)(6) of the North American Free Trade Agreement
Implementation Act. For purposes of section 632(b) of that
Act, the 3-year requirement set forth in section 313(r) of
the Tariff Act of 1930 shall not apply to any drawback claim
filed within 6 months after the date of the enactment of this
Act for which that 3-year period would have expired.

SEC. 2421. DUTY ON CERTAIN IMPORTATIONS OF MUESLIX CEREALS.

(a) Before January 1, 1996.--Notwithstanding section 514 of
the Tariff Act of 1930 (19 U.S.C. 1514) or any other
provision of law, upon proper request filed with the Customs
Service before the 90th day after the date of the enactment
of this Act, any entry or withdrawal from warehouse for
consumption made after December 31, 1991, and before January
1, 1996, of mueslix cereal, which was classified under the
special column rate applicable for Canada in subheading
2008.92.10 of the Harmonized Tariff Schedule of the United
States--
(1) shall be liquidated or reliquidated as if the special
column rate applicable for Canada in subheading 1904.10.00 of
such Schedule applied at the time of such entry or
withdrawal; and
(2) any excess duties paid as a result of such liquidation
or reliquidation shall be refunded, including interest at the
appropriate applicable rate.
(b) After December 31, 1995.--Notwithstanding section 514
of the Tariff Act of 1930 (19 U.S.C. 1514) or any other
provision of law, upon proper request filed with the Customs
Service before the 90th day after the date of the enactment
of this Act, any entry or withdrawal from warehouse for
consumption made after December 31, 1995, and before
January 1, 1998, of mueslix cereal, which was classified
under the special column rate applicable for Canada in
subheading 1904.20.10 of the Harmonized Tariff Schedule of
the United States--
(1) shall be liquidated or reliquidated as if the special
column rate applicable for Canada in subheading 1904.10.00 of
such Schedule applied at the time of such entry or
withdrawal; and
(2) any excess duties paid as a result of such liquidation
or reliquidation shall be refunded, including interest at the
appropriate applicable rate.

SEC. 2422. EXPANSION OF FOREIGN TRADE ZONE NO. 143.

(a) Expansion of Foreign Trade Zone.--The Foreign Trade
Zones Board shall expand Foreign Trade Zone No. 143 to
include areas in the vicinity of the Chico Municipal Airport
in accordance with the application submitted by the
Sacramento-Yolo Port District of Sacramento, California, to
the Board on March 11, 1997.
(b) Other Requirements Not Affected.--The expansion of
Foreign Trade Zone No. 143 under subsection (a) shall not
relieve the Port of Sacramento of any requirement under the
Foreign Trade Zones Act, or under regulations of the Foreign
Trade Zones Board, relating to such expansion.

SEC. 2423. MARKING OF CERTAIN SILK PRODUCTS AND CONTAINERS.

(a) In General.--Section 304 of the Tariff Act of 1930 (19
U.S.C. 1304) is amended--
(1) by redesignating subsections (h), (i), (j), and (k) as
subsections (i), (j), (k), and (l), respectively; and

[[Page S790]]

(2) by inserting after subsection (g) the following new
subsection:
``(h) Marking of Certain Silk Products.--The marking
requirements of subsections (a) and (b) shall not apply
either to--
``(1) articles provided for in subheading 6214.10.10 of the
Harmonized Tariff Schedule of the United States, as in effect
on January 1, 1997; or
``(2) articles provided for in heading 5007 of the
Harmonized Tariff Schedule of the United States as in effect
on January 1, 1997.''.
(b) Conforming Amendment.--Section 304(j) of such Act, as
redesignated by subsection (a)(1) of this section, is amended
by striking ``subsection (h)'' and inserting ``subsection
(i)''.
(c) Effective Date.--The amendments made by this section
apply to goods entered, or withdrawn from warehouse for
consumption, on or after the date of the enactment of this
Act.

SEC. 2424. EXTENSION OF NONDISCRIMINATORY TREATMENT (NORMAL
TRADE RELATIONS TREATMENT) TO THE PRODUCTS OF
MONGOLIA.

(a) Findings.--The Congress finds that Mongolia--
(1) has received normal trade relations treatment since
1991 and has been found to be in full compliance with the
freedom of emigration requirements under title IV of the
Trade Act of 1974;
(2) has emerged from nearly 70 years of communism and
dependence on the former Soviet Union, approving a new
constitution in 1992 which has established a modern
parliamentary democracy charged with guaranteeing fundamental
human rights, freedom of expression, and an independent
judiciary;
(3) has held 4 national elections under the new
constitution, 2 presidential and 2 parliamentary, thereby
solidifying the nation's transition to democracy;
(4) has undertaken significant market-based economic
reforms, including privatization, the reduction of government
subsidies, the elimination of most price controls and
virtually all import tariffs, and the closing of insolvent
banks;
(5) has concluded a bilateral trade treaty with the United
States in 1991, and a bilateral investment treaty in 1994;
(6) has acceded to the Agreement Establishing the World
Trade Organization, and extension of unconditional normal
trade relations treatment to the products of Mongolia would
enable the United States to avail itself of all rights under
the World Trade Organization with respect to Mongolia; and
(7) has demonstrated a strong desire to build friendly
relationships and to cooperate fully with the United States
on trade matters.
(b) Termination of Application of Title IV of the Trade Act
of 1974 to Mongolia.--
(1) Presidential determinations and extensions of
nondiscriminatory treatment.--Notwithstanding any provision
of title IV of the Trade Act of 1974 (19 U.S.C. 2431 et
seq.), the President may--
(A) determine that such title should no longer apply to
Mongolia; and
(B) after making a determination under subparagraph (A)
with respect to Mongolia, proclaim the extension of
nondiscriminatory treatment (normal trade relations
treatment) to the products of that country.
(2) Termination of application of title iv.--On or after
the effective date of the extension under paragraph (1)(B) of
nondiscriminatory treatment to the products of Mongolia,
title IV of the Trade Act of 1974 shall cease to apply to
that country.

SEC. 2425. ENHANCED CARGO INSPECTION PILOT PROGRAM.

(a) In General.--The Commissioner of the Customs Service is
authorized to establish a pilot program for fiscal year 1999
to provide 24-hour cargo inspection service on a fee-for-
service basis at an international airport described in
subsection (b). The Commissioner may extend the pilot program
for fiscal years after fiscal year 1999 if the Commissioner
determines that the extension is warranted.
(b) Airport Described.--The international airport described
in this subsection is a multi-modal international airport
that--
(1) is located near a seaport; and
(2) serviced more than 185,000 tons of air cargo in 1997.

SEC. 2426. PAYMENT OF EDUCATION COSTS OF DEPENDENTS OF
CERTAIN CUSTOMS SERVICE PERSONNEL.

Notwithstanding section 2164 of title 10, United States
Code, the Department of Defense shall permit the dependent
children of deceased United States Customs Aviation Group
Supervisor Pedro J. Rodriquez attending the Antilles
Consolidated School System at Ford Buchanan, Puerto Rico, to
complete their primary and secondary education at this school
system without cost to such children or any parent, relative,
or guardian of such children. The United States Customs
Service shall reimburse the Department of Defense for
reasonable education expenses to cover these costs.
TITLE III--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

SEC. 3001. PROPERTY SUBJECT TO A LIABILITY TREATED IN SAME
MANNER AS ASSUMPTION OF LIABILITY.

(a) Repeal of Property Subject to a Liability Test.--
(1) Section 357.--Section 357(a)(2) of the Internal Revenue
Code of 1986 (relating to assumption of liability) is amended
by striking ``, or acquires from the taxpayer property
subject to a liability''.
(2) Section 358.--Section 358(d)(1) of such Code (relating
to assumption of liability) is amended by striking ``or
acquired from the taxpayer property subject to a liability''.
(3) Section 368.--
(A) Section 368(a)(1)(C) of such Code is amended by
striking ``, or the fact that property acquired is subject to
a liability,''.
(B) The last sentence of section 368(a)(2)(B) of such Code
is amended by striking ``, and the amount of any liability to
which any property acquired from the acquiring corporation is
subject,''.
(b) Clarification of Assumption of Liability.--
(1) In general.--Section 357 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(d) Determination of Amount of Liability Assumed.--
``(1) In general.--For purposes of this section, section
358(d), section 362(d), section 368(a)(1)(C), and section
368(a)(2)(B), except as provided in regulations--
``(A) a recourse liability (or portion thereof) shall be
treated as having been assumed if, as determined on the basis
of all facts and circumstances, the transferee has agreed to,
and is expected to, satisfy such liability (or portion),
whether or not the transferor has been relieved of such
liability; and
``(B) except to the extent provided in paragraph (2), a
nonrecourse liability shall be treated as having been assumed
by the transferee of any asset subject to such liability.
``(2) Exception for nonrecourse liability.--The amount of
the nonrecourse liability treated as described in paragraph
(1)(B) shall be reduced by the lesser of--
``(A) the amount of such liability which an owner of other
assets not transferred to the transferee and also subject to
such liability has agreed with the transferee to, and is
expected to, satisfy, or
``(B) the fair market value of such other assets
(determined without regard to section 7701(g)).
``(3) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subsection and section 362(d). The Secretary may also
prescribe regulations which provide that the manner in which
a liability is treated as assumed under this subsection is
applied, where appropriate, elsewhere in this title.''
(2) Limitation on basis increase attributable to assumption
of liability.--Section 362 of such Code is amended by adding
at the end the following new subsection:
``(d) Limitation on Basis Increase Attributable to
Assumption of Liability.--
``(1) In general.--In no event shall the basis of any
property be increased under subsection (a) or (b) above the
fair market value of such property (determined without regard
to section 7701(g)) by reason of any gain recognized to the
transferor as a result of the assumption of a liability.
``(2) Treatment of gain not subject to tax.--Except as
provided in regulations, if--
``(A) gain is recognized to the transferor as a result of
an assumption of a nonrecourse liability by a transferee
which is also secured by assets not transferred to such
transferee; and
``(B) no person is subject to tax under this title on such
gain,
then, for purposes of determining basis under subsections (a)
and (b), the amount of gain recognized by the transferor as a
result of the assumption of the liability shall be determined
as if the liability assumed by the transferee equaled such
transferee's ratable portion of such liability determined on
the basis of the relative fair market values (determined
without regard to section 7701(g)) of all of the assets
subject to such liability.''.
(c) Application to Provisions Other Than Subchapter C.--
(1) Section 584.--Section 584(h)(3) of the Internal Revenue
Code of 1986 is amended--
(A) by striking ``, and the fact that any property
transferred by the common trust fund is subject to a
liability,'' in subparagraph (A); and
(B) by striking clause (ii) of subparagraph (B) and
inserting:
``(ii) Assumed liabilities.--For purposes of clause (i),
the term `assumed liabilities' means any liability of the
common trust fund assumed by any regulated investment company
in connection with the transfer referred to in paragraph
(1)(A).
``(C) Assumption.--For purposes of this paragraph, in
determining the amount of any liability assumed, the rules of
section 357(d) shall apply.''
(2) Section 1031.--The last sentence of section 1031(d) of
such Code is amended--
(A) by striking ``assumed a liability of the taxpayer or
acquired from the taxpayer property subject to a liability''
and inserting ``assumed (as determined under section 357(d))
a liability of the taxpayer''; and
(B) by striking ``or acquisition (in the amount of the
liability)''.
(d) Conforming Amendments.--
(1) Section 351(h)(1) of the Internal Revenue Code of 1986
is amended by striking ``, or acquires property subject to a
liability,''.
(2) Section 357 of such Code is amended by striking ``or
acquisition'' each place it appears in subsection (a) or (b).
(3) Section 357(b)(1) of such Code is amended by striking
``or acquired''.
(4) Section 357(c)(1) of such Code is amended by striking
``, plus the amount of the liabilities to which the property
is subject,''.
(5) Section 357(c)(3) of such Code is amended by striking
``or to which the property transferred is subject''.

[[Page S791]]

(6) Section 358(d)(1) of such Code is amended by striking
``or acquisition (in the amount of the liability)''.
(e) Effective Date.--The amendments made by this section
shall apply to transfers after October 18, 1998.
______

By Mr. ROTH:
S. 263. A bill to amend the Social Security Act to establish the
Personal Retirement Accounts Program; to the Committee on Finance.

the personal retirement accounts act of 1999

Mr. ROTH. Mr. President, I rise today to introduce the Personal
Retirement Accounts Act of 1999. This legislation has a simple but
powerful purpose--to establish personal retirement accounts for working
Americans. In my view, these accounts promise to give working Americans
not only a more secure retirement future but a new stake in the
nation's economic growth. And, as I will describe, these accounts may
provide the model for future Social Security reform.
Just a few years ago personal retirement accounts were an exotic and
even controversial concept. But no longer! Today, personal retirement
accounts are a bipartisan, even mainstream, idea.
In 1997, a majority of a Clinton administration task force on Social
Security endorsed the concept.
In the last Congress, two comprehensive Social Security reform
proposals, one introduced by Senator Moynihan, the ranking Democrat on
the Finance Committee; the other by Senators Gregg and Breaux, had as a
central element personal retirement accounts.
Mr. President, let me explain why retirement accounts find so much
support--not only in Congress but among the American people. With even
conservative investment, such accounts have the potential to provide
Americans with a substantial retirement nest egg. And an estate that
can be left to children and grandchildren.
Creating these accounts would also give the majority of Americans who
do not own any investment assets a new stake in America's economic
growth--because that growth will be returned directly to their benefit.
More Americans will be the owners of capital--not just workers.
Creating these accounts may encourage Americans to save more. Today,
Americans save less than people in almost every other industrial
country. But personal retirement accounts will demonstrate to all
Americans the magic of compound interest as even small savings grow
significantly over time.
Lastly, creating these accounts will help Americans to better prepare
for retirement. According to the Congressional Research Service, 60
percent of Americans are not actively participating in a retirement
program other than Social Security. A recent survey found that only
about 45 percent of working Americans have tried to calculate how much
they will need for retirement. It is my belief that retirement accounts
will prompt Americans--particularly Baby Boomers--to think more about
retirement planning.
Mr. President, let me describe a few of the features of my bill.
First, the program would run for 5 years, from 2000 to 2004, utilizing
half the budget surplus projected by the Congressional Budget Office.
Each year, working Americans who earned a minimum of four quarters of
Social Security coverage--$3,000 in 2000--would receive a deposit in
his or her account. About 128 million Americans would receive a deposit
in 2000.
The formula for sharing the surplus among the accounts is
progressive. Each eligible individual would receive a minimum amount of
$250 per year, plus an additional amount based on how much they paid in
payroll taxes.
Over the life of the program, a minimum wage earner--someone earning
$12,400 this year--would receive about $1,850. That amount is equal to
a 35-percent rebate of his or her payroll taxes.
An average wage earner--earning $27,600--would receive about $2,590--
equal to a 22-percent rebate of payroll taxes. And an individual who
paid the maximum Social Security tax would get $4,560, a 16-percent
rebate of payroll taxes. These figures do not include any investment
income--or deductions for the costs of running the program.
Account holders would have three investment choices--prudent choices
that balance risk and return. The three choices are a ``stock index
fund''--a mutual fund that reflects the overall performance of the
stock market; a fund that invests in corporate bonds and other ``fixed
income'' securities; and a fund that invests in U.S. Treasury bonds.
However, my legislation also provides for a study of additional
investment options--of other types of investment funds and investment
managers.
An account holder would become eligible for benefits when he or she
signs up for Social Security. An individual could choose between an
annuity or annual payments based on life expectancy.
The bill also provides a number of features to ensure the program is
properly run. First, the program would be neither ``on'' budget nor
``off'' budget--instead, the program would be outside the Federal
budget. The money in the program could be used for no other purpose
than retirement benefits and the program's operating expenses.

Second, the program would be supervised by a new, independent
Personal Retirement Board, with members appointed by the President and
Congressional leaders and subject to Senate confirmation. Board
officials would be fiduciaries, and required by law to act only in the
best financial interests of beneficiaries.
Lastly, the stock funds would be managed by private sector investment
managers. To insulate companies represented in the stock funds from
politics, no Board official or other government employee and would be
eligible to vote company proxies--only the investment managers.
Mr. President, the design of this personal retirement accounts plan
follows a proven model--the Federal Thrift Savings Plan. Back in 1983,
when I was Chairman of the Governmental Affairs Committee, the
retirement program for Federal employees needed to be revamped. One of
the new elements we added was the Federal Thrift Savings Plan--a
defined contribution employee benefit plan--that has been a great
success.
Many Americans will undoubtedly ask, ``What size nest egg might grow
in my personal account?'' According to an analysis done by Social
Security's actuaries, someone earning the minimum wage would have an
account worth about $2,145 in 2004, assuming a 7.5 percent interest
rate. For the average wage earner, the account would be worth about
$2,990, and for the individual paying the maximum Social Security tax,
about $5,250.
Of course, over the long-term, accounts can grow significantly. For
the minimum wage earner after 40 years--in 2039, his or her account
would be worth about $27,000. The average wage earner would have
$38,000; and the person paying the maximum payroll tax, $66,000.
Mr. President, some might ask, ``Why start with personal retirement
accounts, rather than comprehensive Social Security reform?'' Indeed,
my bill will not affect the current Social Security program. Personal
retirement accounts are an exciting concept, but still a big job,
requiring careful work by the Finance Committee.
Personal retirement accounts also enjoy broad support, unlike many
other Social Security reform proposals. So let's get these accounts up
and running, proven and tested, while Congress considers carefully
protecting and preserving Social Security for the long term.
Mr. President, in closing, let me add that personal retirement
accounts have another big promise. Such accounts--if later made a part
of Social Security or even as a permanent supplemental program--may
help restore the confidence of the American people in this important
national program. Polls show that Social Security is among the most
popular government programs, deservedly so. But many Americans--
particularly young Americans--seem to have lost confidence in Social
Security. They believe that there will be no benefits for them when
they retire. Personal retirement accounts will provide the
accountability and assurances that Americans are asking for.
I encourage my colleagues to take a careful look at my bill, and I
invite members to co-sponsor it.
______

By Mr. AKAKA:

[[Page S792]]

S. 264. A bill to increase the Federal medical assistance percentage
for Hawaii to 59.8 percent; to the Committee on Finance.

hawaii federal medical assistance percentage adjustment act

Mr. AKAKA. Mr. President, I rise today to reintroduce legislation I
authored during the 105th Congress that would adjust the Federal
Medical Assistance Percentage (FMAP) rate for Hawaii to reflect more
fairly the state's ability to bear its share of Medicaid payments.
The federal share of Medicaid payments varies depending on each
state's ability to pay--wealthier states bear a larger share of the
cost of the program, and thus have lower FMAP rates. Per capita income
is used as the measure of state wealth. Because per capita income in
Hawaii is quite high, the state's FMAP rate is at the lowest level--50
percent. Hawaii is one of only a dozen states whose FMAP rate is at the
50 percent level. My bill would increase Hawaii's FMAP rate from 50
percent to 59.8 percent.
Because of our geographic location and other factors, the cost of
living in Hawaii greatly exceeds the cost of living on the mainland.
Per capita income is a poor measure of a state's ability to bear the
cost of Medicaid services. An excellent analysis of this issue appears
in the 21st edition of The Federal Budget and the States, a joint study
conducted by the Taubman Center for State and Local Government at
Harvard University's John F. Kennedy School of Government and the
office of U.S. Senator Daniel Patrick Moynihan. According to the study,
if per capita income is measured in real terms, Hawaii ranks 47th at
$19,755 compared to the national average of $24,231. This sheds a
totally different light on the state's financial status.
The cost of living in Honolulu is 83 percent higher than the average
of the metropolitan areas tracked by the U.S. Census Bureau, based on
1995 data. Recent studies have shown that for the state as a whole, the
cost of living is more than one-third higher than the rest of the U.S.
In fact, Hawaii's Cost of Living Index ranks it as the highest in the
country. Some government programs take the high cost of living in
Hawaii into account and funding is adjusted accordingly. These include
Medicare prospective payment rates, food stamp allocations, school
lunch programs, housing insurance limits, and military living expenses.
These examples reflect the recognition that the higher cost of living
in noncontiguous states should be taken into account in fashioning
government policies. It is time for similar recognition of this factor
in gauging Hawaii's ability to support its health care programs. My
colleagues may recall that the Balanced Budget Act of 1997 included a
provision increasing Alaska's FMAP rate to 59.8 percent. Setting a
higher match rate would still leave Hawaii with a lower FMAP rate than
a majority of the states, but would more accurately reflect Hawaii's
ability to pay its fair share of the costs of the Medicaid program.
Despite the high cost of living, the Harvard-Moynihan study finds
that Hawaii also has one of the highest poverty rates in the nation.
The State's 16.9 percent poverty rate is eighth in the country,
compared to the national average of 14.7 percent. These higher costs
are reflected in state government expenditures and state taxation.
Thus, on a per capita basis, state revenue and expenditures are far
higher in Hawaii and Alaska, than in the 48 mainland states. The higher
expenditure levels are necessary to assure an adequate level of public
services which are more costly to provide in these states.
Of the top ten states with the highest poverty rates in the country,
the Harvard-Moynihan study finds that only three others have an FMAP
rate between 50-60 percent. The other six states have FMAP rates of 65
percent and higher. Even more astonishing is that of the top ten states
with the lowest real per capita income, only Hawaii has a 50 percent
FMAP rate.
To bring equity to this situation, Hawaii has sought an increase in
its FMAP rate over the past several years. Just as we did for Alaska in
1997, Hawaii deserves equitable treatment. This change is long
warranted. The same factors justifying an increase for Alaska apply to
Hawaii. Recognition of this point was made by House and Senate
conferees to the Balanced Budget Act. The conferees noted that poverty
guidelines for Alaska and Hawaii are different than those for the rest
of the nation, yet there is no variation from the national calculation
in the FMAP. The conferees correctly noted that comparable adjustments
are generally made for Alaska and Hawaii.
The case for an FMAP increase is especially compelling in Hawaii,
which has a proud history of providing essential health services in an
innovative and cost-effective manner. That commitment is not easy to
fulfill. Unlike most states, Hawaii's Aid to Families with Dependent
Children/Temporary Assistance for Needy Families (AFDC/TANF) caseloads
have risen significantly in recent years. Since TANF block grants are
based on historical spending levels, the increased demand has placed
extreme pressure on state resources.
Hawaii has sought to maintain a social safety net while striving for
more efficient delivery of government services. The most striking
example is the QUEST medical assistance program, which operates under a
federal waiver. QUEST has brought managed care and broader coverage to
the state's otherwise uninsured populations. At the same time, Hawaii
is the only state whose employers guarantee health care coverage to
every full-time employee, a further example of Hawaii's commitment to a
strong social support system.
There is a particularly strong need for a more suitable FMAP rate for
Hawaii at this time. The state has not participated in the robust
economic growth that has benefitted most of the rest of the nation.
Hawaii's unemployment rate is above the national average and state tax
revenues have fallen short of projected estimates. The need to fund 50
percent of the cost of the Medicaid program puts an increasing strain
on the state's resources.
For all of these reasons, the FMAP rates for Hawaii should be
adjusted to reflect more equitably the state's ability to support the
Medicaid program. This will assure that the special problem of the
noncontiguous states is dealt with in a principled manner.
I urge my colleagues in the Senate to support an upward adjustment in
Hawaii's Federal Medical Assistance Percentage.
Mr. President, in closing, 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. 264

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

SECTION 1. INCREASED FMAP FOR HAWAII.

(a) Increased FMAP.--The first sentence of section 1905(b)
of the Social Security Act (42 U.S.C. 1396d(b)) is amended--
(1) by striking ``and (3)'' and inserting ``(3)''; and
(2) by inserting before the period at the end the
following: ``, and (4) for purposes of this title and title
XXI, the Federal medical assistance percentage for Hawaii
shall be 59.8 percent''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to--
(1) items and services furnished on or after October 1,
1998, under--
(A) a State plan or under a waiver of such plan under title
XIX; and
(B) a State child health plan under title XXI of such Act;
(2) payments made on a capitation or other risk-basis for
coverage occurring under plans under such titles on or after
such date; and
(3) payments attributable to DSH allotments for Hawaii
determined under section 1923(f) of such Act (42 U.S.C.
1396r-4(f)) for fiscal years beginning with fiscal year 1999.
______

By Mrs. FEINSTEIN (for herself and Ms. Snowe):
S. 265. A bill entitled ``Hospital Length of Stay Act of 1999''; to
the Committee on Finance.

hospital length of stay act of 1999

Mrs. FEINSTEIN. Mr. President, today, Senator Olympia Snowe and I are
introducing a bill to guarantee that the decision of how long a patient
receives care in the hospital is left to the attending physician. Our
legislation would require health insurance plans to cover the length of
hospital stay for any procedure or illness as determined by the
attending physician, in consultation with the patient, to be medically
appropriate.
The bill is endorsed by the American Medical Association, the
American

[[Page S793]]

College of Surgeons, the American College of Obstetricians and
Gynecologists, the American Academy of Neurology, and the American
Psychological Association.
Only a physician taking care of the patient, who understands the
patient's history, medical condition and needs, should make the
decision as to how much hospital care a person needs. Physicians are
trained to evaluate all the unique needs and problems of each
individual patient. Every patient's condition varies and the course of
their illness also varies. Some patients are fragile or weak. Others do
not respond well to general anesthesia. Complications arise. Each
patient is a unique individual with varying degrees of health.
The American Medical Association, concerned that pre-determined
length of stay criteria are ``moving away from scientific, patient-
focused principles of care,'' resulting in ``quicker and sicker''
discharges and poor patient outcomes, has developed patient-based
discharge criteria. These criteria include considerations such as the
patient's physiological, psychological, social and functional needs.
The AMA criteria say: ``Patients should not be discharged from the
hospital when their disease or symptoms cannot be adequately treated or
monitored in the discharge setting.''
Lengths of stay should not be determined by insurance company clerks,
actuaries or non-medical personnel. It is the attending physician, not
a physician or other representative of an insurance company, that
should decide when to admit and discharge someone.
A number of physicians and other health care providers have expressed
to me their great frustration with the current health care climate, in
which they feel they spend too much of their time trying to justify
their decisions on medical necessity to insurance companies.
For example, Donna Damico, a nurse in a Maryland psychiatric unit of
a hospital, told National Public Radio on October 1, 1997: ``I spend my
days watching the care on my unit be directed by faceless people from
insurance companies on the other end of the phone. My hospital employs
a full-time nurse whose entire job is to talk to insurance reviewers *
* * The reviewer's background can range anywhere from high school
graduate to nurse, social worker or even actual physicians.''
In 1996, we addressed the problem of ``drive-through'' baby
deliveries because insurance plans would only pay for one day of
hospital car for childbirth. This was fraught with problems like
jaundiced babies that had to be rehospitalized and mothers who
developed problems which only worsened because they were sent home
despite physicians' view that a mother's and baby's stability are not
usually reached until the third post-partum day.
We have also been told of so-called ``drive-through'' mastectomies.
Some HMO's have made mastectomy an outpatient procedure. Women who have
had a radical mastectomy at 7:30 a.m. have been out on the street at
4:30 that afternoon, dizzy and weak, unable to cope with drainage tubes
and disfigurement. Senator Snowe and I are introducing a separate bill
to address this.
A California pediatrician told me of a child with very bad asthma.
The insurance plan authorized 3 days in the hospital; the doctor wanted
4-5 days. He told us about a baby with infant botulism (poisoning), a
baby with a toxin that had spread from the intestine to the nervous
system so that the child could not breathe. The doctor thought a 10-14
day hospital stay was medically necessary for the baby; the insurance
plan insisted on one week.
A California neurologist told us about a seven-year-old girl with an
ear infection who went to the doctor feverish. When her illness
developed into pneumonia, she was admitted to the hospital. After two
days she was sent home, but she then returned to the hospital three
times because her insurance plan only covered a certain number of days.
The third time she returned she had meningitis, which can be life
threatening. The doctor said that if this girl had stayed in the
hospital the first time for five to seven days, the antibiotics would
have killed the infection, and the meningitis would never have
developed.

A 27-year-old man from central California had a heart transplant and
was forced out of the hospital after 4 days because his HMO would not
pay for more days. He died.
Nurses in St. Luke's Hospital, San Francisco, say that women are
being sent home after only two nights after a hysterectomy and two
nights for a Caesarean section delivery, both of which are major
abdominal surgeries, even though physicians think the women are not
ready to go home.
Lisa Breakey, a San Jose speech pathologist, came to my office and
told us that she is providing home health for stroke patients she used
to see in the hospital. She sees patients in their homes who have tubes
in their stomach for feeding and tracheotomy tubes in their throats for
breathing. These trach tubes have an inflated balloon or cuff which a
family member must deflate and inflate by using a needle. Family
members are supposed to suction the patient's mouth and throat before
they deflate the cuff. Families, she stressed, are providing intensive
care, for which they are unprepared and untrained. Bedrooms have become
hospital rooms.
Another California physician told us about a patient who needed total
hip replacement because her hip had failed. The doctor believed a
seven-day stay was warranted; the plan would only authorize five.
Rep. Greg Ganske, a physician serving in the House, told the story of
a six-year-old child who nearly drowned. The child was put on a
ventilator and it appeared that he would not live. The hospital got a
call from the insurance company, asking if the doctor had considered
sending the boy home because home ventilation is cheaper.
These cases can be summarized in the comments of a Chico, California,
maternity ward nurse: ``People's treatment depends on the type of
insurance they have rather than what's best for them.''
As I have mentioned, premature discharges can increase readmissions
and medical complications.
On March 23, 1998, American Medical News (according to Dr. David
Phillips) reported that the ``shift toward outpatient treatment
actually has come at quite a high price * * * an increased loss of
lives.'' This University of California study found that medication
errors are 3 times higher among outpatients than inpatients and medical
personnel in outpatient care provide limited oversight of medications'
side effects.
Ms. Damico, the nurse interviewed on NPR, said, ``Patients return to
us in acute states because their insurance will no longer pay the same
amount for their outpatient treatment * * * [They] deteriorate to the
point of suicidal thoughts or attempts and need to return to the
hospital.'' She cited the example of a suicidal woman whose plan denied
a hospital admission requested by her physician. After the doctor told
her of the denial, she took twenty 50-milligram tabs of Benadryl, was
then admitted, and the plan then had to pay for hospital care, an
ambulance and emergency room fees.
So not only do premature discharges compromise health, they also
ultimately cost the insurer more.
Physicians say they have to fight almost daily with insurance
companies to give patients the hospital care they need and to justify
their decisions about patient care.
An American Medical Association review of a managed care contract
(Aetna US Healthcare) found that the contract gives ``the company the
unilateral authority to change material terms of the contract and to
make determinations of medical necessity * * * without regard to
physician determinations or scientific or clinical protocols. * * *,''
according to the January 19, 1998 American Medical News.
A study by the American Academy of Neurology found that the
guidelines (Milliman and Robertson) used by many insurance companies on
length of stay are ``extraordinarily short in comparison to a large
National Library of Medicine database * * * And that [the guidelines]
do not relate to anything resembling the average hospital patient or
attending physician * * *.'' The neurologists found that these
guidelines were ``statistically developed,'' and not scientifically
sound or clinically relevant.

A study in the April 1997 Bulletin of the American College of
Surgeons

[[Page S794]]

found that surgeons stated that the appropriate length of stay for an
appendectomy is zero to five days, while insurance industry guidelines
set a specific coverage limit of one day.
The arbitrary limits set by HMO's and insurance plans are resulting
in unintended consequences. Some 7 in 10 physicians said that in
dealing with managed care plans, they have exaggerated the severity of
a patient's condition to ``prevent him or her from being sent home from
a hospital prematurely.'' Dr. David Schriger, at UCLA Medical Center in
Los Angeles, said that he routinely has patients such as a frail,
elderly woman with the flu, who is not in imminent danger but could
encounter serious problems if she is sent home during the night. He
told the Washington Post, ``At this point I have to figure out a way to
put her in the hospital. . . . And typically, I'll come up with a
reason acceptable to the insurer,'' and orders a blood test and chest
x-ray to justify admission.
The Post article also cited Kaiser Permanente's Texas division, which
``warned doctors in urgent care centers not to tell patients they
required hospitalization,'' as one Kaiser administrator recalled. ``We
basically said [to] the UCC doctors, `If you value your job, you won't
say anything about hospitalization. All you'll say is, I think you need
further evaluation. . . .' ''
Ms. Damico, the psychiatric nurse interviewed on NPR said, ``Our
utilization review nurse gives all of us, including the doctors, good
advice on how to chart so that our patients' care will be covered. . .
. We all conspire quietly to make certain the charts look and sound bad
enough.''
On August 2, 1998, calling it the ``brave new world of managed
care,'' the San Jose Mercury News reported, ``to cut costs HMOs are
shifting the burden of caring for the sick from their staff and
provider networks to patients themselves and their often ill-prepared
family members,'' by reducing hospital stays. ``Patients who used to be
in the hospital for a week after a hip replacement now stay only three
days; patients who had coronary artery bypass graft surgery are pushed
out after four or five. Doctors are routinely performing operations in
outpatient surgery centers, clinics or their offices, which were once
done in the hospital.'' This article cited, as examples, mastectomies,
knee surgery, parts of bone marrow transplants, and cancer
chemotherapies.
The American College of Surgeons said it all when this prestigious
organization wrote: ``We believe very strongly that any health care
system or plan that removes the surgeon and the patient from the
medical decision-making process only undermines the quality of that
patient's care and his or her health and well-being. . . . specific,
single numbers [of days] cannot and should not be used to represent a
length of stay for a given procedure.'' (April 24, 1997) ACS on March 5
wrote, ``We believe very strongly that any health care system or plan
that removes the surgeon and the patient from the medical decision
making process only undermines the quality of that patient's care and
his or her health and well being.''
The American Medical Association wrote on May 20, 1998, ``We are
gratified that this bill would promote the fundamental concept, which
the AMA has always endorsed, that medical decisions should be made by
patients and their physicians, rather than by insurers or legislators.
. . . We appreciate your initiative and ongoing efforts to protect
patients by ensuring that physicians may identify medically appropriate
lengths of stay, unfettered by third party payers.''
The American Psychological Association, on March 4, 1998 wrote me,
``We are pleased to support this legislation, which will require all
health plans to follow the best judgment of the patient and attending
provider when determining length of stay for inpatient treatment.''
New treatments, particularly less invasive treatments, have shortened
many hospital stays, but so also has pressure from insurers. Business
and Health magazine reported in ``The State of Health Care in America
1998'' that ``HMOs and capitated point-of-service plans'' were
associated with the lowest inpatient stays. Other studies reveal that
in areas with high HMO competition, health care utilization is lower
for the entire population.'' This study shows that for patients with
traditional fee-for-service insurance, the average length of stay in
1995 was 4.9 days. For HMOs, it was 4.2 days. California Health Care
Association data show that in my state, the average length of stay has
declined from 5.70 days in 1986 to 4.45 in 1995. A study in the spring
1996 issue of Health Affairs concluded that the number of inpatient
days per thousand residents is lower and has declined faster in
California than the national average. The average length of stay in
California in 1996 was 5.3 days, while nationally it was 6.4 days. For
example, a woman getting a mastectomy in New York will stay in the
hospital an average of 5.78 days, but a mastectomy patient in
California is likely to stay 2.98 days. (Inquiry, winter 1997-1998).
Americans are disenchanted with the health insurance system in this
country, as HMO hassles mount and physicians get effectively overruled
by insurance companies. Arbitrary insurance company rules cannot
address the subtleties of medical care. Three out of every four
Americans are worried about their health care coverage and half say
they are worried that doctors are basing treatment decisions strictly
on what insurance plans will pay for.
This bill is one step toward returning medical decision-making to
those medical professionals trained to make medical decisions.

summary of the hospital length of stay act of 1998

Requires plans to cover hospital lengths of stay for all illnesses
and conditions as determined by the physician, in consultation with the
patient, to be medically appropriate.
Prohibits plans from requiring providers (physicians) to obtain a
plan's prior authorization for a hospital length of stay.
Prohibits plans from denying eligibility or renewal for the purpose
of avoiding these requirements.
Prohibits plans from penalizing or otherwise reducing or limiting
reimbursement of the attending physician because the physician provided
care in accordance with the requirements of the bill.
Prohibits plans from providing monetary or other incentives to induce
a physician to provide care inconsistent with these requirements.
Includes language clarifying that--
Nothing in the bill requires individuals to stay in the hospital for
a fixed period of time for any procedure;
Plans may require copayments but copayments for a hospital stay
determined by the physician cannot exceed copayments for any preceding
portion of the stay.
Does not pre-empt state laws that provide greater protection.
Applies to private insurance plans, Medicare, Medicaid, Medigap,
federal employees' plans, Children's Health Insurance Plan, the Indian
Health Service
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. 265

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 ``Hospital Length of Stay Act
of 1999''.

SEC. 2. COVERAGE OF HOSPITAL LENGTH OF STAY.

(a) Group Health Plans.--
(1) Public health service act amendments.--
(A) In general.--Subpart 2 of part A of title XXVII of the
Public Health Service Act (42 U.S.C. 300gg-4 et seq.) is
amended by adding at the end the following new section:

``SEC. 2707. STANDARDS RELATING TO COVERAGE OF HOSPITAL
LENGTHS OF STAY.

[[Page S795]]

health insurance coverage in connection with a group health
plan (including a self-insured issuer) may not--
``(1) deny to an individual eligibility, or continued
eligibility, to enroll or to renew coverage under the terms
of the plan, solely for the purpose of avoiding the
requirements of this section;
``(2) provide monetary payments or rebates to an individual
to encourage the individual to accept less than the minimum
protections available under this section;
``(3) penalize or otherwise reduce or limit the
reimbursement of an attending provider because such provider
provided care to an individual participant or beneficiary in
accordance with this section;
``(4) provide incentives (monetary or otherwise) to an
attending provider to induce such provider to provide care to
an individual participant or beneficiary in a manner
inconsistent with this section; or
``(5) subject to subsection (c)(4), restrict benefits for
any portion of a period within a hospital length of stay
required under subsection (a) in a manner which is less
favorable than the benefits provided for any preceding
portion of such stay.
``(c) Rules of Construction.--
``(1) No requirement to stay.--Nothing in this section
shall be construed to require an individual who is a
participant or beneficiary to stay in the hospital for a
fixed period of time for any procedure.
``(2) No effect on requirements for minimum hospital stay
following birth.--Nothing in this section shall be construed
as modifying the requirements of section 2704.
``(3) Nonapplicability.--This section shall not apply with
respect to any group health plan, or any group health
insurance coverage offered by a health insurance issuer
(including a self-insured issuer), which does not provide
benefits for hospital lengths of stay.
``(4) Cost-sharing.--Nothing in this section shall be
construed as preventing a group health plan, or a health
insurance issuer offering group health insurance coverage in
connection with a group health plan (including a self-insured
issuer), from imposing deductibles, coinsurance, or other
cost-sharing in relation to benefits for hospital lengths of
stay under the plan, health insurance coverage offered in
connection with a group health plan, or the supplemental
policy, except that such coinsurance or other cost-sharing
for any portion of a period within a hospital length of stay
required under subsection (a) may not be greater than such
coinsurance or cost-sharing for any preceding portion of such
stay.
``(d) Notice.--A group health plan under this part shall
comply with the notice requirement under section 714(d) of
the Employee Retirement Income Security Act of 1974 with
respect to the requirements of this section as if such
section applied to such plan.
``(e) Level and Type of Reimbursements.--Nothing in this
section shall be construed to prevent a group health plan or
a health insurance issuer offering group health insurance
coverage in connection with a group health plan (including a
self-insured issuer) from negotiating the level and type of
reimbursement with a provider for care provided in accordance
with this section.
``(f) Preemption; Exception for Health Insurance Coverage
in Certain States.--
``(1) In general.--The requirements of this section shall
not apply with respect to health insurance coverage if there
is a State law (as defined in section 2723(d)(1)) for a State
that regulates such coverage and provides greater protections
to patients than those provided under this section.
``(2) Construction.--Section 2723(a)(1) shall not be
construed as superseding a State law described in paragraph
(1).''.
(B) Conforming amendment.--Section 2723(c) of the Public
Health Service Act (42 U.S.C. 300gg-23(c)) is amended by
striking ``section 2704'' and inserting ``sections 2704 and
2707''.
(2) ERISA amendments.--
(A) In general.--Subpart B of part 7 of subtitle B of title
I of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1185 et seq.) is amended by adding at the end the
following new section:

``SEC. 714. STANDARDS RELATING TO COVERAGE OF HOSPITAL
LENGTHS OF STAY.

``(a) Requirement.--A group health plan and a health
insurance issuer offering group health insurance coverage in
connection with a group health plan (including a self-insured
issuer), that provides coverage for inpatient hospital
services--
``(1) shall provide coverage for the length of an inpatient
hospital stay as determined by the attending physician (or
other attending health care provider to the extent permitted
under State law) in consultation with the patient to be
medically appropriate; and
``(2) may not require that a provider obtain authorization
from the plan or the issuer for prescribing any length of
stay required under paragraph (1).
``(b) Prohibitions.--A group health plan and a health
insurance issuer offering group health insurance coverage in
connection with a group health plan (including a self-insured
issuer), may not--
``(1) deny to an individual eligibility, or continued
eligibility, to enroll or to renew coverage under the terms
of the plan, solely for the purpose of avoiding the
requirements of this section;
``(2) provide monetary payments or rebates to an individual
to encourage the individual to accept less than the minimum
protections available under this section;
``(3) penalize or otherwise reduce or limit the
reimbursement of an attending provider because such provider
provided care to an individual participant or beneficiary in
accordance with this section;
``(4) provide incentives (monetary or otherwise) to an
attending provider to induce such provider to provide care to
an individual participant or beneficiary in a manner
inconsistent with this section; or
``(5) subject to subsection (c)(4), restrict benefits for
any portion of a period within a hospital length of stay
required under subsection (a) in a manner which is less
favorable than the benefits provided for any preceding
portion of such stay.
``(c) Rules of Construction.--
``(1) No requirement to stay.--Nothing in this section
shall be construed to require an individual who is a
participant or beneficiary to stay in the hospital for a
fixed period of time for any procedure.
``(2) No effect on requirements for minimum hospital stay
following birth.--Nothing in this section shall be construed
as modifying the requirements of section 711.
``(3) Nonapplicability.--This section shall not apply with
respect to any group health plan or any group health
insurance coverage offered by a health insurance issuer
(including a self-insured issuer), which does not provide
benefits for hospital lengths of stay.
``(4) Cost-sharing.--Nothing in this section shall be
construed as preventing a group health plan or a health
insurance issuer offering group health insurance coverage in
connection with a group health plan (including a self-insured
issuer), from imposing deductibles, coinsurance, or other
cost-sharing in relation to benefits for hospital lengths of
stay under the plan or health insurance coverage offered in
connection with a group health plan, except that such
coinsurance or other cost-sharing for any portion of a period
within a hospital length of stay required under subsection
(a) may not be greater than such coinsurance or cost-sharing
for any preceding portion of such stay.
``(d) Notice under Group Health Plan.--The imposition of
the requirements of this section shall be treated as a
material modification in the terms of the plan described in
section 102(a)(1), for purposes of assuring notice of such
requirements under the plan; except that the summary
description required to be provided under the last sentence
of section 104(b)(1) with respect to such modification shall
be provided by not later than 60 days after the first day of
the first plan year in which such requirements apply.
``(e) Level and Type of Reimbursements.--Nothing in this
section shall be construed to prevent a group health plan or
a health insurance issuer offering group health insurance
coverage in connection with a group health plan (including a
self-insured issuer), from negotiating the level and type of
reimbursement with a provider for care provided in accordance
with this section.
``(f) Preemption; Exception for Health Insurance Coverage
in Certain States.--
``(1) In general.--The requirements of this section shall
not apply with respect to health insurance coverage if there
is a State law (as defined in section 731(d)(1)) for a State
that regulates such coverage and provides greater protections
to patients than those provided under this section.
``(2) Construction.--Section 731(a)(1) shall not be
construed as superseding a State law described in paragraph
(1).''.
(B) Conforming amendments.--
(i) Section 731(c) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1191(c)) is amended by
striking ``section 711'' and inserting ``sections 711 and
714''.
(ii) Section 732(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1191a(a)), as amended by
section 603(b)(2) of Public Law 104-204, is amended by
striking ``section 711'' and inserting ``sections 711 and
714''.
(iii) The table of contents in section 1 of the Employee
Retirement Income Security Act of 1974 is amended by
inserting after the item relating to section 713 the
following new item:

``Sec. 714. Standards relating to coverage of hospital lengths of
stay.''.
(b) Individual Market.--Subpart 3 of part B of title XXVII
of the Public Health Service Act (42 U.S.C. 300gg-51 et seq.)
is amended by adding at the end the following new section:

``SEC. 2753. STANDARDS RELATING TO COVERAGE OF HOSPITAL
LENGTHS OF STAY.

``The provisions of section 2707 shall apply to health
insurance coverage offered by a health insurance issuer in
the individual market in the same manner as they apply to
health insurance coverage offered by a health insurance
issuer in connection with a group health plan in the small or
large group market.''.
(c) Effective Dates.--
(1) Group health plans.--Subject to paragraph (3), the
amendments made by subsection (a) shall apply with respect to
group health plans for plan years beginning on or after
January 1, 2000.
(2) Health insurance coverage.--The amendment made by
subsection (b) shall apply with respect to health insurance
coverage offered, sold, issued, renewed, in effect, or
operated in the individual market on or after such date.
(3) Collective bargaining agreements.--In the case of a
group health plan maintained pursuant to 1 or more collective
bargaining agreements between employee representatives and 1
or more employers ratified before the date of enactment of
this Act,

[[Page S796]]

the amendments made subsection (a) shall not apply to plan
years beginning before the later of--
(A) the date on which the last collective bargaining
agreements relating to the plan terminates (determined
without regard to any extension thereof agreed to after the
date of enactment of this Act), or
(B) January 1, 2000.

For purposes of subparagraph (A), any plan amendment made
pursuant to a collective bargaining agreement relating to the
plan which amends the plan solely to conform to any
requirement added by subsection (a) shall not be treated as a
termination of such collective bargaining agreement.

SEC. 3. APPLICATION TO MEDICARE AND MEDICAID BENEFICIARIES.

(a) Medicare.--
(1) In general.--Title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.) is amended by adding at the end the
following:

``STANDARDS RELATING TO COVERAGE OF HOSPITAL LENGTHS OF STAY

``Sec. 1897. (a) Application to Medicare.--Notwithstanding
the limitation on benefits described in section 1812, or any
other limitation on benefits imposed under this title, the
provisions of section 2707 of the Public Health Service Act
shall apply to the provision of items and services under this
title.
``(b) Medicare+Choice and Eligible Organizations.--The
Secretary may not enter into a contract with a
Medicare+Choice organization under part C, or with an
eligible organization with a risk-sharing contract under
section 1876, unless the organization meets the requirements
of section 2707 of the Public Health Service Act with respect
to individuals enrolled with the organization.''.
(2) Medicare supplemental policies.--
(A) In general.--Section 1882(c) of the Social Security Act
(42 U.S.C. 1395ss(c)) is amended--
(i) in paragraph (4), by striking ``and'' at the end;
(ii) in paragraph (5), by striking the period and inserting
``, and''; and
(iii) by adding at the end the following:
``(6) meets the requirements of section 2707 of the Public
Health Service Act with respect to individuals enrolled under
the policy.''.
(B) Conforming amendment.--Section 1882(b)(1)(B) of the
Social Security Act (42 U.S.C. 1395ss(b)(1)(B)) is amended by
striking ``(5)'' and inserting ``(6)''.
(3) Cost Sharing.--Nothing in this subsection or section
2707(c) of the Public Health Service Act shall be construed
as authorizing the imposition of cost sharing with respect to
the coverage or benefits required to be provided under the
amendments to the Social Security Act made by paragraphs (1)
and (2) that is inconsistent with the cost sharing that is
otherwise permitted under title XVIII of the Social Security
Act.
(b) Medicaid.--Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) is amended by redesignating section 1935
as section 1936 and by inserting after section 1934 the
following:

``STANDARDS RELATING TO COVERAGE OF HOSPITAL LENGTHS OF STAY

``Sec. 1935. (a) In General.--A State plan may not be
approved under this title unless the plan requires each
health insurance issuer or other entity with a contract with
such plan to provide coverage or benefits to individuals
eligible for medical assistance under the plan, including a
managed care entity, as defined in section 1932(a)(1)(B), to
comply with the provisions of section 2707 of the Public
Health Service Act with respect to such coverage or benefits.
``(b) Cost Sharing.--Nothing in this section or section
2707(c) of the Public Health Service Act shall be construed
as authorizing a health insurance issuer or entity to impose
cost sharing with respect to the coverage or benefits
required to be provided under section 2707 of the Public
Health Service Act that is inconsistent with the cost sharing
that is otherwise permitted under this title.
``(c) Waivers Prohibited.--The requirement of subsection
(a) may not be waived under section 1115 or section 1915(b)
of the Social Security Act.''.
(c) Effective Date.--The amendments made by this section
apply to contract years under titles XVIII and XIX of the
Social Security Act beginning on or after January 1, 2000.
(d) Medigap Transition Provisions.--
(1) In general.--If the Secretary of Health and Human
Services identifies a State as requiring a change to its
statutes or regulations to conform its regulatory program to
the changes made by subsection (a)(2), the State regulatory
program shall not be considered to be out of compliance with
the requirements of section 1882 of the Social Security Act
due solely to failure to make such change until the date
specified in paragraph (4).
(2) NAIC standards.--If, within 9 months after the date of
the enactment of this Act, the National Association of
Insurance Commissioners (in this subsection referred to as
the ``NAIC'') modifies its NAIC Model Regulation relating to
section 1882 of the Social Security Act (referred to in such
section as the 1991 NAIC Model Regulation, as modified
pursuant to section 171(m)(2) of the Social Security Act
Amendments of 1994 (Public Law 103-432) and as modified
pursuant to section 1882(d)(3)(A)(vi)(IV) of the Social
Security Act, as added by section 271(a) of the Health
Insurance Portability and Accountability Act of 1996 (Public
Law 104-191) to conform to the amendments made by this
section, such revised regulation incorporating the
modifications shall be considered to be the applicable NAIC
model regulation (including the revised NAIC model regulation
and the 1991 NAIC Model Regulation) for the purposes of such
section.
(3) Secretary standards.--If the NAIC does not make the
modifications described in paragraph (2) within the period
specified in such paragraph, the Secretary of Health and
Human Services shall make the modifications described in such
paragraph and such revised regulation incorporating the
modifications shall be considered to be the appropriate
Regulation for the purposes of such section.
(4) Date specified.--
(A) In general.--Subject to subparagraph (B), the date
specified in this paragraph for a State is the earlier of--
(i) the date the State changes its statutes or regulations
to conform its regulatory program to the changes made by this
section, or
(ii) 1 year after the date the NAIC or the Secretary first
makes the modifications under paragraph (2) or (3),
respectively.
(B) Additional legislative action required.--In the case of
a State which the Secretary identifies as--
(i) requiring State legislation (other than legislation
appropriating funds) to conform its regulatory program to the
changes made in this section, but
(ii) having a legislature which is not scheduled to meet in
2000 in a legislative session in which such legislation may
be considered,

the date specified in this paragraph is the first day of the
first calendar quarter beginning after the close of the first
legislative session of the State legislature that begins on
or after July 1, 2000. For purposes of the previous sentence,
in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate
regular session of the State legislature.

SEC. 4. APPLICATION TO OTHER HEALTH CARE COVERAGE.

(a) FEHBP.--Chapter 89 of title 5, United States Code, is
amended by adding at the end the following:

``Sec. 8915. Standards relating to coverage of hospital
lengths of stay

``Sec. 1110. Standards relating to coverage of hospital
lengths of stay

``(a) Application of Standards.--The provisions of section
2707 of the Public Health Service Act shall apply to the
provision of items and services under this chapter.
``(b) Cost-Sharing.--Nothing in this section or section
2707(c) of the Public Health Service Act shall be construed
as authorizing the imposition of cost sharing with respect to
the coverage or benefits required to be provided under
section 2707 of the Public Health Service Act that is
inconsistent with the cost sharing that is otherwise
permitted under this chapter.''.
(c) Veterans.--Subchapter II of chapter 17 of title 38,
United States Code, is amended by adding at the end the
following:

``Sec. 1720E. Standards relating to coverage of hospital
lengths of stay

``(a) The provisions of section 2707 of the Public Health
Service Act shall apply to the provision of items and
services under this chapter.
``(b) Nothing in this section or section 2707(c) of the
Public Health Service Act shall be construed as authorizing
the imposition of cost sharing with respect to the coverage
or benefits required to be provided under section 2706 of the
Public Health Service Act that is inconsistent with the cost
sharing that is otherwise permitted under this chapter.''.
(d) State Children's Health Insurance Program.--Section
2109 of the Social Security Act (42 U.S.C. 1397ii) is amended
by adding at the end the following:
``(b) Application of Standards Relating to Coverage of
Hospital Lengths of Stay.--
``(1) In general.--The provisions of section 2707 of the
Public Health Service Act shall apply to the provision of
items and services under this title.
``(2) Cost-sharing.--Nothing in this section or section
2707(c) of the Public Health Service Act shall be construed
as authorizing a health insurance issuer or entity to impose
cost sharing with respect to the coverage or benefits
required to be provided under section 2707 of the Public
Health Service Act that is inconsistent with the cost sharing
that is otherwise permitted under this title.''.
(e) Indian Health Service and Health Care Provided by
Tribal Organizations.--Title VIII of the Indian Health Care
Improvement Act (25 U.S.C. 1671 et seq.) is amended by adding
at the end the following:

[[Page S797]]

``STANDARDS RELATING TO COVERAGE OF HOSPITAL LENGTHS OF STAY

``Sec. 826. (a) The provisions of section 2707 of the
Public Health Service Act shall apply to the provision of
items and services under this Act by the Service or a tribal
organization.
``(b) Nothing in this section or section 2707(c) of the
Public Health Service Act shall be construed as authorizing
the imposition of cost sharing with respect to the coverage
or benefits required to be provided under section 2707 of the
Public Health Service Act that is inconsistent with the cost
sharing that is otherwise permitted under this Act.''.
(f) Health Care Provided to Peace Corps Volunteers.--
Section 5(e) of the Peace Corps Act (22 U.S.C. 2504(e)) is
amended by adding at the end the following: ``The provisions
of section 2707 of the Public Health Service Act shall apply
to the provision of items and services under this section.
Nothing in this section or section 2707(c) of the Public
Health Service Act shall be construed as authorizing the
imposition of cost sharing with respect to the coverage or
benefits required to be provided under section 2707 of the
Public Health Service Act that is inconsistent with the cost
sharing that is otherwise permitted under this section.''.
______

By Mrs. FEINSTEIN:
S. 266. A bill to amend the Clean Air Act to permit the exclusive
application of California State regulations regarding reformulated
gasoline in certain areas within the State; to the Committee on
Environment and Public Works.
S. 267. A bill to amend the Solid Waste Disposal Act to direct
Administrator of Environmental Protection Agency to give highest
priority to petroleum contaminants in drinking water in issuing
corrective action orders under the response program for petroleum; to
the Committee on Environment and Public Works.
S. 268. A bill to specify the effective date of and require an
amendment to the final rule of the Environmental Protection Agency
regulating exhaust emissions from new spark-ignition gasoline marine
engines; to the Committee on Environment and Public Works.

eliminate mtbe from california's drinking water

Mrs. FEINSTEIN. Mr. President, today I am introducing three bills to
stop the contamination of California's drinking water by the gasoline
additive MTBE.
First, I am introducing a bill to allow California to apply its own
clean or reformulated gasoline rules as long as emissions reductions
are equivalent or greater. California's rules are stricter than the
federal rules and thus meet the air quality requirements of the federal
Clean Air Act. This bill is the companion to H.R. 11 introduced by
Representative Bilbray on January 6, 1998.
MTBE or methyl tertiary butyl either is added to gasoline by some
refiners in response to federal requirements that areas with the most
serious air pollution problems use what is called ``reformulated
gasoline,'' a type of cleaner-burning gasoline. The federal law
requires that this gasoline contain 2 percent by weight oxygenate. MTBE
has been the oxygenate of choice by some refiners.
The major source of MTBE in groundwater appears to be leaking
underground storage tanks. In surface water, it is recreational
gasoline-powered boating and personal watercraft, according to the
California Environmental Protection Agency.
The second bill requires the U.S. Environmental Protection Agency to
make petroleum releases into drinking water the highest priority in the
federal underground storage tank cleanup program. This bill is needed
because underground storage tanks are the major source of MTBE into
drinking water and federal law does not give EPA specific guidance on
cleanup priorities.
The third bill will move from 2006 to 2001 full implementation of
EPA's current watercraft engine exhaust emissions requirements. The
California Air Resources Board on December 10, 1998, adopted watercraft
engine regulations in effect making the federal EPA rules effective in
2001, so this bill will make the deadline in the federal requirements
consistent with California's deadlines. In addition, the bill will
require an emissions label on these engines consistent with
California's requirements so the consumer can make an informed
purchasing choice. This bill is needed because watercraft engines have
remained essentially unchanged since the 1930s and up to 30 percent of
the gas that goes into the motor goes into water unburned.

These three bills represent three steps toward getting MRBE out of
California's drinking water.

Bill 1: The California Clean Gas Formula

The Feinstein-Bilbray bill would provide that if a state's
reformulated gasoline rules achieve equal or greater emissions
reductions than federal regulations, a state's rules will take
precedence. The bill would apply only to states which have received
waivers under Section 209(b)(1) of the Clean Air Act. California is the
only state currently eligible for this waiver, a waiver allowing
California to set its own fuel standards. The other 49 states do not
set their own fuel specifications.
This bill would exempt California from overlapping federal oxygenate
requirements and give gasoline manufacturers the flexibility to reduce
or even eliminate the use of MTBE, while not reducing our air quality.
In 1994, the CARB adopted a ``predictive model,'' which is a
performance based program that allows refiners to use innovative fuel
formulations to meet clean air requirements. The predictive model
provides twice the clean air benefits required by the federal
government. With this model, refiners can make cleaner burning gasoline
with one percent oxygen or even no oxygen at all. The federal two
percent oxygenate requirement limits this kind of innovation. In fact,
Tosco and Shell are already making MTBE-free gasoline.
In addition, Chevron has said:

MTBE is the best oxygenate of choice for blending CBG
(clean burning gasoline) in California refineries. . . .
However, consistent with our desire to reduce or eliminate
MTBE from cleaner burning gas (CBG), we want the flexibility
to be able to make prudent use of any oxygenate--MTBE,
ethanol, or the use of no oxygenate--while meeting the
emissions performance standards of reformulated gasolines. If
the government allows this flexibility, Chevron would likely
use more ethanol than now to efficiently provide cleaning
burning gasoline.

The legislation allows that companies who serve California's gasoline
needs to continue to adopt innovative formulas for cleaner burning
gasoline without contaminating the water.
The University of California study, released in November, recommended
phasing our MTBE and concluded that oil companies can make cleaner-
burning gasoline that meets federal air standards without MTBE.

the problem: drinking water contamination

Contamination of California's drinking water by MTBE is growing
almost daily. A December 14, 1998 San Francisco Chronicle headline
calls MTBE a ``Ticking Bomb.'' The University of California study says,
``If MTBE continues to be used at current levels and more sources
become contaminated, the potential for regional degradation of water
resources, especially groundwater basins, will increase. Severity of
water shortages during drought years will be exacerbated.''
In higher concentrations, MTBE smells like turpentine and it tastes
like paint thinner. Relatively low levels of MTBE can simply make
drinking water simply undrinkable.
MTBE is a highly soluble organic compound which moves quickly through
soil and gravel. It therefore poses a more rapid threat to water
supplies than other constituents of gasoline when leaks occur. MTBE is
easily traced, but is very difficult and expensive to cleanup. The
Association of California Water Agencies estimates that it would cost
as much as $1 million per well to install treatment technology to
remove MTBE from drinking water. Without these funds, the only option
is to shut down wells.
MTBE use has escalated from 12,000 barrels a day in 1980 to about
100,000 barrels today, according to CARB. EPA says that about 30
percent of the nation's gasoline is reformulated gas and MTBE is used
in about 84 percent of reformulated gasoline. Two-thirds of
California's gasoline is subject to the federal oxygenate requirement.
This growth in use of MTBE is directly attributable to the requirements
of the Federal Clean Air Act.

contamination widespread

A June 12, 1998 Lawrence Livermore National Laboratory study
concluded that MTBE is a ``frequent and widespread contaminant'' in
groundwater throughout California and does not degrade significantly
once it is there. This study found that groundwater has been
contaminated at over 10,000 shallow monitoring sites. The Livermore

[[Page S798]]

study says that ``MTBE has the potential to impact regional groundwater
resources and may present a cumulative contamination hazard.''
Californians are more dependent on groundwater as a source of
drinking water than most Americans. According to the U.S. Geological
Survey, 69 percent of California's population relies on groundwater as
their source of drinking water, while for the U.S. population at large,
53 percent of the population relies on groundwater.
Similarly, the Association of California Water Agencies reports that
MTBE has impacted over 10,000 sites.
MTBE has been detected in drinking water supplies in a number of
cities, including Santa Monica, Riverside, Anaheim, Los Angeles, San
Francisco, Sebastopol, Manteca, and San Diego. MTBE has also been
detected in numerous California reservoirs, including Lake Shasta in
Redding, San Pablo and Cherry reservoirs in the Bay Area, and Coyote
and Anderson reservoirs in Santa Clara.
Santa Monica lost 75 percent of its groundwater supply; the South
Lake Tahoe Public Utility District has lost over one-third of drinking
water wells. Drinking water wells in Santa Clara Valley (Great Oaks
Water Company) and Sacramento (Fruitridge Vista Water Company) have
been shut down because of MTBE contamination.
In addition, MTBE has been detected in the following surface water
reservoirs: Lake Perris (Metropolitan Water District of Southern
California), Anderson Reservoir (Santa Clara Valley Water District),
Canyon Lake (Elsinore Valley Municipal Water District), Pardee
Reservoir and San Pablo Reservoir (East Bay Municipal Utility
District), Lake Berryessa (Solano County Water Agency).
The largest contamination occurred in the city of Santa Monica, which
lost 75% of its groundwater supply as a result of MTBE leaking out of
shallow gas tanks beneath the surface; MTBE has been discovered in
publicly owned wells approximately 100 feet from City Council Chamber
in South Lake Tahoe; In Glennvile, California, near Bakersfield, MTBE
levels have been detected in groundwater as high as 190,000 parts per
billion--dramatically exceeding the California Department of Health
advisory of 35 parts per billion; and

dangers of mtbe

The United States EPA has indicated that ``MTBE is an animal
carcinogen and has a human carcinogenic hazard potential.''
Studies to assess hazards to animals have found that MTBE is
carcinogenic in rodents in high doses. MTBE has been linked to leukemia
and lymphomas in female rats and an increase in benign testicular
tumors in male rats. Studies of inhalation exposure in rats have also
shown increased incidence of kidney, testicular, and liver tumors.
Inhalation exposure has also resulted in adverse effect on developing
mouse fetuses.
The Alaska Department of Health and Social Services and the Centers
for Disease Control monitored concentrations of MTBE in the air and in
the blood of humans in 1992 and 1993. Blood levels of MTBE were
analyzed in gasoline station and car-repair workers and commuters.
People with higher blood levels of MTBE were significantly more likely
to report more headaches, eye irritation, nausea, dizziness, burning of
the nose and throat, coughing, disorientation and vomiting, compared
with those who had lower blood levels. From these studies, EPA
concluded, ``MTBE can pose a hazard of non-cancer effects to humans at
high doses. The data do not support confident quantitative estimations
or risk at low exposure.''

california's regulations can achieve what federal law intends

The federal gasoline oxygenate requirement went into effect in
December 1994, affecting areas where the air quality is the worst.
Today, reformulated gasoline is required by federal law in the
following areas of California:
Year-round: Oxygenates are required to be used in the South Coast Air
Basin (the counties of Los Angeles, Riverside, San Bernadino, Orange,
Ventura) and the Sacramento metropolitan area (which includes all of
Sacramento County and portions of Yolo, Placer and Eldorado County).
Wintertime: Oxygenates are required to be added to gasoline in the
Southern California Air Basin (the entire counties of Los Angeles,
Riverside, San Bernardino, Orange, and Ventura), Imperial County,
Fresno and Lake Tahoe.
While federal Clean Air Act regulations were being promulgated, the
California Air Resources Board developed more stringent air standards,
using a ``predictive model.''
The Clean Air Act has no doubt helped reduce emissions throughout the
United States, but the federal requirements have imposed limitations on
the level of flexibility that U.S. EPA can grant to California. The
overlapping applicability of both the federal and state reformulated
gasoline rules has actually prohibited gasoline manufacturers from
responding as effectively as possible to unforseen problems with their
product. This bill addresses exactly this type of situation.
This legislation rewards California for its unique and effective
approach in solving its own air quality problems by permitting it an
exemption from federal oxygenate requirements as long as tough
environmental standards are enforced. This bill does not weaken the
Clean Air Act, but instead is a step in the right direction, towards
sound environmental policy. It is a narrowly-targeted bill designed to
make our drinking water clean to drink. With this bill, California is
once again taking the initiative to lead the way in ensuring the
protection of the air we breath, and the water we drink.
By allowing the companies that supply our state's gasoline to use
good science and sound environmental policy, we can achieve the goals
set forth by the Clean Air Act, without sacrificing California's clean
water.

california, a leader in air cleanup

California's efforts to improve air quality predate similar federal
efforts and have achieved marked success in reducing emissions,
resulting in the cleanest air Californians have seen in decades.
Since the introduction of California Cleaner Burning Gasoline
program, there has been a 300 ton per day decrease in ozone forming
ingredients found in the air. This is the emission reduction equivalent
of taking 3.5 million automobiles off the road. California reformulated
gasoline reduces smog forming emissions from vehicles by 15 percent.
The state has also seen a marked decrease in first stage smog alerts,
during which residents with respiratory ailments are encouraged to stay
indoors.
John Dunlap, former Chairman of California's Air Board, who supports
this legislation, has said:

. . . our program has proven (to have) a significant effect
on California's air quality. Following the introduction of
California's gasoline program in the spring of 1996,
monitored levels of ozone . . . were reduced by 10 percent in
Northern California, and by 18 percent in the Los Angeles
area. Benzene levels (have decreased) by more than 50
percent.

this bill should be enacted

There are several reasons to enact this bill:
1. Studies confirm need to eliminate MTBE.
The June 11, 1998 Lawrence Livermore study found MTBE at 10,000 sites
and said it is ``a frequent and widespread contaminant in shallow
groundwater throughout California.''
A five-volume University of California November 12, 1998 study
concluded that MTBE provides ``no significant air quality benefit'' and
that if its use is continued, ``the potential for regional degradation
of water resources, especially groundwater, will increase.'' The
landmark UC study recommended that MTBE use be phased out and that
refiners be given the flexibility of the state's clean gas regulations.
2. MTBE is not needed. California can meet federal clean air
standards by using our own state clean gas regulations.
The California Air Resources Board has testified that we can have
equivalent or greater reductions in emissions and improve air quality
using California's regulations. These standards are more stringent than
the federal requirements, but offer gasoline refiners more flexibility.
3. MTBE in drinking water poses health risks.
MTBE is an animal carcinogen and a potential human carcinogen. It
tastes bad. It smells bad. It may have other harmful human health
effects.
4. The dangers of MTBE were not considered when Congress last amended
the Clear Air Act in 1990.

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According to the Congressional Research Service, during Congress's
consideration of the Clean Air Act Amendments, which became law in
1990, there was no discussion of the possible adverse impacts of MTBE
as a gasoline additive. Likewise, CARB has said that when they were
considering our state's reformulated gasoline regulations, ``the
concern over the use of oxygenates was not raised as an issue.''
5. California needs water.
California cannot afford to lose any more of its drinking water.
According to the Association of California Water Agencies, by the year
2020, California will be 4 million to 6 million acre-feet short of
water each year without additional facilities and water management
strategies.
5. Congress has long recognized that California is a unique case.
California's efforts to improve air quality predate similar federal
efforts. We have our own clean gas program and U.S. EPA has given the
state a waiver under section 209(b)(1) of the Clean Air Act to develop
our own program.

widespread support

I am appending at the end of my statement a list of California local
governments, water districts, air districts, statewide and other
organizations that support my MTBE bill.

bill 2: stopping underground tank leaks

My second bill will make threats to drinking water the highest
priority in the federal underground tank cleanup program at EPA.
In 1986, Congress created a Leaking Underground Storage Tank (LUST)
Trust Fund, funded by a one-tenth of one cent tax on all petroleum
products. These funds are available to enforce cleanup requirements; to
conduct cleanups where there is no financially viable responsible party
or where a responsible party fails to correct; to take corrective
action in emergencies; and to bring actions against parties who fail to
comply. There is approximately $1.5 billion currently in the fund.
Under current law, section 9003(h)(3) of the Solid Waste Disposal
Act, EPA is required to give priority in corrective actions to
petroleum releases from tanks which pose ``the greatest threat to human
health and the environment,'' a provision that I support. My bill would
add simple clarifying language that in essence says that threats to
drinking water are the most serious threats and should receive priority
attention.
Leaking underground gasoline storage tank systems are the major
source of MTBE into drinking water. The June 11, 1998 Lawrence
Livermore Laboratory study that examined 236 tanks in 24 California
counties found MTBE at 78 percent of these sites. These scientists said
that a minimum estimate of the number of MTBE-impacted tank sites in my
state is over 10,000. Federal law requires tanks to have protections
against spills, overfills, and tank corrosion by December 22, 1998.
Tank owners have had ten years to do this. EPA has estimated that half
the nation's 600,000 tanks and 52 percent of California's 61,000
complied by the December 22 deadline.

Clearly, stopping these leaks is a big part of the solution of
stopping the release of MTBE. Making threats to drinking water a top
cleanup priority makes sense since clean drinking water is fundamental
to human health.

bill 3: motorcraft engines

My third bill addresses a third source of MTBE into drinking water--
watercraft engines. The Association of California Water Agencies says
that MTBE in surface water reservoirs comes largely from recreational
watercraft.
In October 1996, U.S. EPA published regulations, starting in model
year 1998, requiring stricter emissions controls on personal watercraft
engines to be fully implemented by 2006. On December 10, 1998, the
California Air Resources Board adopted regulations very similar to
EPA's in substance, but accelerating their effective date to 2001, five
years earlier. In addition, California added two more ``tiers'' of
emissions reductions that go beyond U.S. EPA's, reducing emissions by
20 percent more in 2004 and 65 percent more in 2008. Under the federal
requirements, there would be a complete fleet turnover by 2050; in
California, there would be a complete fleet turnover in 2024, 26 years
earlier.
The federal and the California rules apply to (1) spark-ignition
outboard marine and (2) personal watercraft engines, such as
motorboats, jet skis and wave runners, beginning in model year 2001.
Outboard engines: In 1990, there were 373,200 gasoline-powered
outboard engines in California. California sales of outboard engines
represented ten percent of the U.S. market in 1997.
Personal watercraft: California sales of these engines were 12
percent of the 176,000 sales in the U.S. in 1995, numbers which have no
doubt grown significantly. Personal watercraft like jet skis have
increased by 240 percent since 1990 and these numbers are expected to
double by 2020.
We need to curb emissions from these marine engines because (1)
unlike automobiles which exhaust into the air, all marine engines
exhaust directly into the water, and (2) 20 to 30 percent of the gas
that goes in, comes out unburned. According to CARB, these engines
``discharge an unburned fuel/oil mixture at levels approaching 20 to 30
percent of the fuel/oil mixture consumed. This unregulated discharge of
fuel and oil threatens degradation of high quality waters . . .'' CARB
says that two hours of exhaust emissions from a jet ski is equivalent
to the emission created by driving a 1998 automobile 130,000 miles.
Some areas are considering banning jet skis and gas-powered boats.
My bill does two things: (1) It would make the EPA's existing
regulations effective in 2001, instead of 2006, consistent with
California's regulations. (2) It would direct EPA to make one addition
to their current regulation, an engine labeling requirement, consistent
with California's labeling requirement, designed to inform consumers of
the relative emissions level of new engines.
Because these engines put MTBE and other constituents of gasoline
into surface waters, I believe we need to accelerate the national rules
to discourage people from ``engine shopping'' from state to state and
bringing ``dirty'' engines into California. Because my state's
relatively mild weather encourages boating, our air board concluded
that we need more stringent standards than the national standards. Up
to 30 percent of gasoline in these engines comes out unburned. In other
words, of 10 gallons per hour used, about two and one half gallons of
fuel goes into the water unburned in one hour. This has to stop.
The November 1998 University of California study recognizes the
emissions of MTBE into surface waters from watercraft and says that
technologies are available that will ``significantly reduce MTBE
loading,'' that the older carbureted two-stroke engines release much
larger amounts of MTBE and other gasoline constituents than the fuel-
injected engines or the four-stroke engines.
Millions of Californians should not have to drink water contaminated
with MTBE. I believe we must take strong steps to end this
contamination.

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