Congressional Record, Volume 145 Issue 43 (Thursday, March 18, 1999)

[Congressional Record Volume 145, Number 43 (Thursday, March 18, 1999)]
[Senate]
[Pages S2935-S2961]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. INHOFE:
S. 657. A bill to amend the Internal Revenue Code of 1986 to expand
the availability of medical savings accounts, and for other purposes;
to the Committee on Finance.

MEDICAL SAVINGS ACCOUNT EXPANSION ACT OF 1999

Mr. INHOFE. Mr. President, I am pleased to rise today to introduce
the Medical Savings Account Expansion Act of 1999. There has been much
said recently regarding the need to reform health care. I agree with
many of my colleagues that health care is indeed in need of serious
reform. However, the nature and the scope of reforms are open to
debate.
During the health care debate of 1996, the Congress focused its
efforts on attempting to provide the uninsured with insurance. Included
in the legislation, Congress created a demonstration project in order
to test the effectiveness of Medical Savings Accounts. However, in
establishing the demonstration project, the Congress created numerous
legislative roadblocks to the success of Medical Savings Accounts.
As we are all aware, Medical Savings Accounts combine a high
deductible insurance policy and tax exempt accounts for the purpose of
providing health care. MSA holders use these accounts to purchase
routine health care services. When account holders spend all of the
funds in their account and reach their annual deductible, their health
insurance policy kicks in. If they don't spend all the money in the
account, they get to keep what's left, plus interest for the following
year.
The creation of Medical Savings Accounts was the result of a
bipartisan coalition that many in the Senate worked long and hard to
achieve. Medical Savings Accounts are really based on a simple
principle that should be at the heart of the health care reform, that
being, empowering people to take control of their own health care
improves the system for everyone. Expanding MSAs is one small, but
important, step in that regard. Providing individuals with an incentive
to save money on their health care costs encourages them to be better
consumers. The result is much needed cost control and consumer
responsibility.
Mr. President, I think as the Congress begins to discuss health care
reform this year, we must move away from the debate on the regulation
and rationing of health care and focus our energies on providing health
care to the uninsured. Instead of concentrating our efforts on reforms
that will likely result in less health care, we should be trying to
expand the opportunity for health care. At the same time, we must do so
in a cost effective and market oriented way. MSAs meet that goal.
According to the General Accounting Office, more than 37% of the
people who have opted to buy an MSA under the 1996 law were previously
uninsured. That bears repeating; people who have previously been
uninsured, are now buying health insurance. We need to make it possible
for more people to obtain health care insurance. Now, compare those 37%
of previously uninsured who now have health insurance with the
projected 400,000 people who would lose their current health insurance
if the Congress does something that would raise current health
insurance premiums by just one percentage point and the argument
becomes even stronger to expand the use of MSAs.
Mr. President, the legislation I am introducing today does just that,
it makes Medical Savings Accounts more readily available to more people
by eliminating many of the legislative and regulatory roadblocks to
their continued success. The GAO report referred to earlier, points out
that one of the key reasons why MSAs have not been as successful as
originally thought is the complexity of the law.

Let me touch on a just few of the problems my legislation addresses.
First is the scope of the demonstration project. Mr. President, I
believe we should drop the 750,000 cap and extend the life of the
project indefinitely. The 750,000 cap is merely an arbitrary number
negotiated by the Congress. By lifting the cap and making MSAs
permanent, we will be allowing the market to decide whether MSAs are a
viable alternative in health insurance. The cap

[[Page S2936]]

and the limited time constraint create a disincentive for insurance
companies to provide MSAs as an option. The GAO study I cited earlier
supports this conclusion. The majority of companies who offered MSA
plans did so in order to preserve a share of the market. The result,
few, if any, are aggressively marketing MSAs. If Congress is serious
about testing the effectiveness of MSAs in the marketplace, we must
free them from unnecessary and arbitrarily imposed restraints.
Second, under current law, either an employer or an employee can
contribute directly to an MSA, but not both. The legislation I am
introducing would allow both employers and employees to contribute to a
Medical Savings Account. This just makes sense. By limiting who can
contribute to an individual MSA, the government has predetermined the
limits of contributions. I think many employers would prefer to
contribute to an individual's health care account, rather than continue
the costly, third-party payer system. By allowing both employers and
employees to contribute to MSAs, we will be giving more flexibility to
Medical Savings Accounts. That flexibility will allow more people to
obtain MSAs and undoubtedly contribute to their success.
One of the arguments frequently made against MSAs is that they are
for the rich. Certainly that is an understandable conclusion, given the
fact that we limit who can contribute to MSAs. By lifting the
contribution restrictions, individuals of all income levels will find
MSAs a viable health care alternative.
As I travel throughout Oklahoma, a common complaint is the access to
quality health care and the rising cost of health care. In my state,
managed care is not always an option for many people in rural areas.
However, Medical Savings Accounts are an option for many families
because MSAs give them the choice to pursue individualized health care
that fits their needs. These are the sorts of solutions that our
constituents have sent us to Washington to find. They are not
interested in more government. In fact, many want less. Yet, all we
offer them is differing degrees of government intrusion in their lives.
Mr. President, the debate in the 105th Congress clearly demonstrated
we are all concerned about access to health care, doctor choice, cost,
and security. As the debate moves forward in the 106th Congress, I want
to urge my colleagues to consider alternatives to further big-
government and to be bold enough to pursue them.
Mr. President, I ask that the full text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 657

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 ``Medical Savings Account
Expansion Act of 1999''.

SEC. 2. REPEAL OF RESTRICTIONS ON TAXPAYERS HAVING MEDICAL
SAVINGS ACCOUNTS.

(a) Repeal of Numerical Limitations and Termination.--
(1) In general.--Section 220 of the Internal Revenue Code
of 1986 (relating to medical savings accounts) is amended by
striking subsections (i) and (j).
(2) Medicare+choice.--Section 138 of such Code (relating to
Medicare+Choice MSA) is amended by striking subsection (f).
(3) Conforming amendment.--Section 220(c)(1) of such Code
is amended by striking subparagraph (D).
(b) Repeal of Restrictions on Individuals Who Have Medical
Savings Accounts.--
(1) In general.--Section 220(c)(1)(A) of the Internal
Revenue Code of 1986 (relating to eligible individual) is
amended by inserting ``and'' at the end of clause (i), by
striking ``, and'' at the end of clause (ii)(II) and
inserting a period, and by striking clause (iii).
(2) Conforming amendments.--
(A) Section 220(b) of such Code is amended by striking
paragraph (4) and by redesignating paragraphs (5), (6), and
(7) as paragraphs (4), (5), and (6), respectively.
(B) Section 220(c)(1) of such Code, as amended by
subsection (a)(3), is amended by striking subparagraph (C).
(C) Section 220(c) of such Code is amended by striking
paragraph (4) and by redesignating paragraph (5) as paragraph
(4).
(c) Repeal of Restriction on Joint Employer-Employee
Contributions.--Section 220(b) of the Internal Revenue Code
of 1986 (relating to limitations) is amended by striking
paragraph (4), as redesignated by subsection (b)(2)(A), and
by redesignating paragraphs (5) and (6) (as so redesignated)
as paragraphs (4) and (5), respectively.
(d) 100 Percent Funding of Account Allowed.--
(1) In general.--Section 220(b)(2) of the Internal Revenue
Code of 1986 (relating to monthly limitation) is amended to
read as follows:
``(2) Monthly limitation.--The monthly limitation for any
month is the amount equal to \1/12\ of the annual deductible
of the high deductible health plan of the individual as of
the first of such month.''.
(2) Conforming amendment.--Section 220(d)(1)(A) of such
Code is amended by striking ``75 percent of''.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to months
beginning after the date of enactment of this Act.
(2) Compensation limit repeal.--The amendments made by
subsection (b)(2)(A) shall apply to taxable years beginning
after December 31, 1999.

SEC. 3. REDUCTION IN HIGH DEDUCTIBLE PLAN MINIMUM ANNUAL
DEDUCTIBLE

(a) In General.--Section 220(c)(2)(A) of the Internal
Revenue Code of 1986 (relating to high deductible health
plan) is amended--
(1) by striking ``$1,500'' in clause (i) (relating to self-
only coverage) and inserting ``$1,000'', and
(2) by striking ``$3,000'' in clause (ii) (relating to
family coverage) and inserting ``$2,000''.
(b) Effective Date.--The amendments made by this section
shall take effect on January 1, 2000.
______

By Mr. GRAMM (for himself, Mrs. Hutchison, Mr. Domenici, Mr.
Bingaman, Mr. Kyl, Mr. McCain, Mrs. Feinstein, Mrs. Boxer, and
Mr. Gorton):
S. 658. A bill to authorize appropriations for the United States
Customs Service for fiscal years 2000 and 2001; to the Committee on
Finance.

protection of u.s. borders

Mr. GRAMM. Mr. President, on behalf of Senators Hutchison, Bingaman,
Domenici, Kyl, McCain, Boxer, Feinstein, and Gorton, I am introducing
legislation today which will authorize the United States Customs
Service to acquire the necessary personnel and technology to reduce
delays at our border crossings with Mexico and Canada to no more than
20 minutes, while strengthening our commitment to interdict illegal
narcotics and other contraband.
This bill represents the progress that we made in this regard in the
last Congress, and it builds on efforts that we initiated last year.
This legislation passed the Senate unanimously on October 8, 1998, and
a similar companion bill passed the House of Representatives on May 19,
1998 by a vote of 320-86. In addition to the resources dedicated to our
nation's land borders, this bill also incorporates the efforts of
Senators Grassley and Graham in adding resources for interdiction
efforts in the air and along our coastline, provisions that were passed
by the Senate in last year's bill.
I am very concerned about the impact of narcotics trafficking on
Texas and the nation and have worked closely with federal and state law
enforcement officials to identify and secure the necessary resources to
battle the onslaught of illegal drugs. At the same time, however, our
current enforcement strategy is burdened by insufficient staffing, a
gross underuse of vital interdiction technology, and is effectively
closing the door to legitimate trade.
At a time when NAFTA and the expanding world marketplace are making
it possible for us to create more commerce, freedom and opportunity for
people on both sides of the border, it is important that we eliminate
the border crossing delays that are stifling these goals. In order for
all Americans to fully enjoy the benefits of growing trade with Mexico
and Canada, we must ensure that the Customs Service has the resources
necessary to accomplish its mission. Customs inspections should not be
obstacles to legitimate trade and commerce. Customs staffing needs to
be increased significantly to facilitate the flow of substantially
increased traffic on both the Southwestern and Northern borders, and
these additional personnel need the modern technology that will allow
them to inspect more cargo, more efficiently. The practical effect of
these increases will be to open all the existing primary inspection
lanes where congestion is a problem during peak hours and to enhance
investigative capabilities on the Southwest border.

[[Page S2937]]

Long traffic lines at our international crossings are
counterproductive to improving our trade relationship with Mexico and
Canada. This bill is designed to shorten those lines and promote
legitimate commerce, while providing the Customs Service with the means
necessary to tackle the drug trafficking operations that are now
rampant along the 1,200-mile border that my State shares with Mexico. I
will be speaking further to my colleagues about this initiative and
urge their support for the bill.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 658

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 ``Drug Free Borders Act of
1999''.
TITLE I--AUTHORIZATION OF APPROPRIATIONS FOR UNITED STATES CUSTOMS
SERVICE FOR ENHANCED INSPECTION, TRADE FACILITATION, AND DRUG
INTERDICTION

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

(a) Drug Enforcement and Other Noncommercial Operations.--
Subparagraphs (A) and (B) of section 301(b)(1) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)(A) and (B)) are amended to read as follows:
``(A) $997,300,584 for fiscal year 2000.
``(B) $1,100,818,328 for fiscal year 2001.''.
(b) Commercial Operations.--Clauses (i) and (ii) of section
301(b)(2)(A) of such Act (19 U.S.C. 2075(b)(2)(A)(i) and
(ii)) are amended to read as follows:
``(i) $990,030,000 for fiscal year 2000.
``(ii) $1,009,312,000 for fiscal year 2001.''.
(c) Air and Marine Interdiction.--Subparagraphs (A) and (B)
of section 301(b)(3) of such Act (19 U.S.C. 2075(b)(3)(A) and
(B)) are amended to read as follows:
``(A) $229,001,000 for fiscal year 2000.
``(B) $176,967,000 for fiscal year 2001.''.
(d) Submission of Out-Year Budget Projections.--Section
301(a) of such Act (19 U.S.C. 2075(a)) is amended by adding
at the end the following:
``(3) By no later than the date on which the President
submits to the Congress the budget of the United States
Government for a fiscal year, the Commissioner of Customs
shall submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate
the projected amount of funds for the succeeding fiscal year
that will be necessary for the operations of the Customs
Service as provided for in subsection (b).''.

SEC. 102. CARGO INSPECTION AND NARCOTICS DETECTION EQUIPMENT
FOR THE UNITED STATES-MEXICO BORDER, UNITED
STATES-CANADA BORDER, AND FLORIDA AND GULF
COAST SEAPORTS.

(a) Fiscal Year 2000.--Of the amounts made available for
fiscal year 2000 under section 301(b)(1)(A) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)(A)), as amended by section 101(a) of this Act,
$100,036,000 shall be available until expended for
acquisition and other expenses associated with implementation
and deployment of narcotics detection equipment along the
United States-Mexico border, the United States-Canada border,
and Florida and the Gulf Coast seaports, as follows:
(1) United states-mexico border.--For the United States-
Mexico border, the following:
(A) $6,000,000 for 8 Vehicle and Container Inspection
Systems (VACIS).
(B) $11,000,000 for 5 mobile truck x-rays with transmission
and backscatter imaging.
(C) $12,000,000 for the upgrade of 8 fixed-site truck x-
rays from the present energy level of 450,000 electron volts
to 1,000,000 electron volts (1-MeV).
(D) $7,200,000 for 8 1-MeV pallet x-rays.
(E) $1,000,000 for 200 portable contraband detectors
(busters) to be distributed among ports where the current
allocations are inadequate.
(F) $600,000 for 50 contraband detection kits to be
distributed among all southwest border ports based on traffic
volume.
(G) $500,000 for 25 ultrasonic container inspection units
to be distributed among all ports receiving liquid-filled
cargo and to ports with a hazardous material inspection
facility.
(H) $2,450,000 for 7 automated targeting systems.
(I) $360,000 for 30 rapid tire deflator systems to be
distributed to those ports where port runners are a threat.
(J) $480,000 for 20 portable Treasury Enforcement
Communications Systems (TECS) terminals to be moved among
ports as needed.
(K) $1,000,000 for 20 remote watch surveillance camera
systems at ports where there are suspicious activities at
loading docks, vehicle queues, secondary inspection lanes, or
areas where visual surveillance or observation is obscured.
(L) $1,254,000 for 57 weigh-in-motion sensors to be
distributed among the ports with the greatest volume of
outbound traffic.
(M) $180,000 for 36 AM traffic information radio stations,
with 1 station to be located at each border crossing.
(N) $1,040,000 for 260 inbound vehicle counters to be
installed at every inbound vehicle lane.
(O) $950,000 for 38 spotter camera systems to counter the
surveillance of customs inspection activities by persons
outside the boundaries of ports where such surveillance
activities are occurring.
(P) $390,000 for 60 inbound commercial truck transponders
to be distributed to all ports of entry.
(Q) $1,600,000 for 40 narcotics vapor and particle
detectors to be distributed to each border crossing.
(R) $400,000 for license plate reader automatic targeting
software to be installed at each port to target inbound
vehicles.
(S) $1,000,000 for a demonstration site for a high-energy
relocatable rail car inspection system with an x-ray source
switchable from 2,000,000 electron volts (2-MeV) to 6,000,000
electron volts (6-MeV) at a shared Department of Defense
testing facility for a two-month testing period.
(2) United states-canada border.--For the United States-
Canada border, the following:
(A) $3,000,000 for 4 Vehicle and Container Inspection
Systems (VACIS).
(B) $8,800,000 for 4 mobile truck x-rays with transmission
and backscatter imaging.
(C) $3,600,000 for 4 1-MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors (busters)
to be distributed among ports where the current allocations
are inadequate.
(E) $300,000 for 25 contraband detection kits to be
distributed among ports based on traffic volume.
(F) $240,000 for 10 portable Treasury Enforcement
Communications Systems (TECS) terminals to be moved among
ports as needed.
(G) $400,000 for 10 narcotics vapor and particle detectors
to be distributed to each border crossing based on traffic
volume.
(H) $600,000 for 30 fiber optic scopes.
(I) $250,000 for 50 portable contraband detectors (busters)
to be distributed among ports where the current allocations
are inadequate;
(J) $3,000,000 for 10 x-ray vans with particle detectors.
(K) $40,000 for 8 AM loop radio systems.
(L) $400,000 for 100 vehicle counters.
(M) $1,200,000 for 12 examination tool trucks.
(N) $2,400,000 for 3 dedicated commuter lanes.
(O) $1,050,000 for 3 automated targeting systems.
(P) $572,000 for 26 weigh-in-motion sensors.
(Q) $480,000 for 20 portable Treasury Enforcement
Communication Systems (TECS).
(3) Florida and gulf coast seaports.--For Florida and the
Gulf Coast seaports, the following:
(A) $4,500,000 for 6 Vehicle and Container Inspection
Systems (VACIS).
(B) $11,800,000 for 5 mobile truck x-rays with transmission
and backscatter imaging.
(C) $7,200,000 for 8 1-MeV pallet x-rays.
(D) $250,000 for 50 portable contraband detectors (busters)
to be distributed among ports where the current allocations
are inadequate.
(E) $300,000 for 25 contraband detection kits to be
distributed among ports based on traffic volume.
(b) Fiscal Year 2001.--Of the amounts made available for
fiscal year 2001 under section 301(b)(1)(B) of the Customs
Procedural Reform and Simplification Act of 1978 (19 U.S.C.
2075(b)(1)(B)), as amended by section 101(a) of this Act,
$9,923,500 shall be for the maintenance and support of the
equipment and training of personnel to maintain and support
the equipment described in subsection (a).
(c) Acquisition of Technologically Superior Equipment;
Transfer of Funds.--
(1) In general.--The Commissioner of Customs may use
amounts made available for fiscal year 2000 under section
301(b)(1)(A) of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075(b)(1)(A)), as
amended by section 101(a) of this Act, for the acquisition of
equipment other than the equipment described in subsection
(a) if such other equipment--
(A)(i) is technologically superior to the equipment
described in subsection (a); and
(ii) will achieve at least the same results at a cost that
is the same or less than the equipment described in
subsection (a); or
(B) can be obtained at a lower cost than the equipment
described in subsection (a).
(2) Transfer of funds.--Notwithstanding any other provision
of this section, the Commissioner of Customs may reallocate
an amount not to exceed 10 percent of--
(A) the amount specified in any of subparagraphs (A)
through (R) of subsection (a)(1) for equipment specified in
any other of such subparagraphs (A) through (R);
(B) the amount specified in any of subparagraphs (A)
through (Q) of subsection (a)(2) for equipment specified in
any other of such subparagraphs (A) through (Q); and
(C) the amount specified in any of subparagraphs (A)
through (E) of subsection (a)(3) for equipment specified in
any other of such subparagraphs (A) through (E).

[[Page S2938]]

SEC. 103. PEAK HOURS AND INVESTIGATIVE RESOURCE ENHANCEMENT
FOR THE UNITED STATES-MEXICO AND UNITED STATES-
CANADA BORDERS, FLORIDA AND GULF COAST
SEAPORTS, AND THE BAHAMAS.

Of the amounts made available for fiscal years 2000 and
2001 under subparagraphs (A) and (B) of section 301(b)(1) of
the Customs Procedural Reform and Simplification Act of 1978
(19 U.S.C. 2075(b)(1)(A) and (B)), as amended by section
101(a) of this Act, $159,557,000, including $5,673,600, until
expended, for investigative equipment, for fiscal year 2000
and $220,351,000 for fiscal year 2001 shall be available for
the following:
(1) A net increase of 535 inspectors, 120 special agents,
and 10 intelligence analysts for the United States-Mexico
border and 375 inspectors for the United States-Canada
border, in order to open all primary lanes on such borders
during peak hours and enhance investigative resources.
(2) A net increase of 285 inspectors and canine enforcement
officers to be distributed at large cargo facilities as
needed to process and screen cargo (including rail cargo) and
reduce commercial waiting times on the United States-Mexico
border and a net increase of 125 inspectors to be distributed
at large cargo facilities as needed to process and screen
cargo (including rail cargo) and reduce commercial waiting
times on the United States-Canada border.
(3) A net increase of 40 inspectors at sea ports in
southeast Florida to process and screen cargo.
(4) A net increase of 70 special agent positions, 23
intelligence analyst positions, 9 support staff, and the
necessary equipment to enhance investigation efforts targeted
at internal conspiracies at the Nation's seaports.
(5) A net increase of 360 special agents, 30 intelligence
analysts, and additional resources to be distributed among
offices that have jurisdiction over major metropolitan drug
or narcotics distribution and transportation centers for
intensification of efforts against drug smuggling and money-
laundering organizations.
(6) A net increase of 2 special agent positions to re-
establish a Customs Attache office in Nassau.
(7) A net increase of 62 special agent positions and 8
intelligence analyst positions for maritime smuggling
investigations and interdiction operations.
(8) A net increase of 50 positions and additional resources
to the Office of Internal Affairs to enhance investigative
resources for anticorruption efforts.
(9) The costs incurred as a result of the increase in
personnel hired pursuant to this section.

SEC. 104. AIR AND MARINE OPERATION AND MAINTENANCE FUNDING.

(a) Fiscal Year 2000.--Of the amounts made available for
fiscal year 2000 under subparagraphs (A) and (B) of section
301(b)(3) of the Customs Procedural Reform and Simplification
Act of 1978 (19 U.S.C. 2075(b)(3) (A) and (B)) as amended by
section 101(c) of this Act, $130,513,000 shall be available
until expended for the following:
(1) $96,500,000 for Customs aircraft restoration and
replacement initiative.
(2) $15,000,000 for increased air interdiction and
investigative support activities.
(3) $19,013,000 for marine vessel replacement and related
equipment.
(b) Fiscal Year 2001.--Of the amounts made available for
fiscal year 2001 under subparagraphs (A) and (B) of section
301(b)(3) of the Customs Procedural Reform and Simplification
Act of 1978 (19 U.S.C. 2075(b)(3) (A) and (B)) as amended by
section 101(c) of this Act, $75,524,000 shall be available
until expended for the following:
(1) $36,500,000 for Customs Service aircraft restoration
and replacement.
(2) $15,000,000 for increased air interdiction and
investigative support activities.
(3) $24,024,000 for marine vessel replacement and related
equipment.

SEC. 105. COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.

As part of the annual performance plan for each of the
fiscal years 2000 and 2001 covering each program activity set
forth in the budget of the United States Customs Service, as
required under section 1115 of title 31, United States Code,
the Commissioner of Customs shall establish performance goals
and performance indicators, and comply with all other
requirements contained in paragraphs (1) through (6) of
subsection (a) of such section with respect to each of the
activities to be carried out pursuant to sections 102 and 103
of this Act.

SEC. 106. COMMISSIONER OF CUSTOMS SALARY.

(a) In General.--
(1) Section 5315 of title 5, United States Code, is amended
by striking the following item:
``Commissioner of Customs, Department of Treasury.''.
(2) Section 5314 of title 5, United States Code, is amended
by inserting the following item:
``Commissioner of Customs, Department of Treasury.''.
(b) Effective Date.--The amendments made by this section
shall apply to fiscal year 1999 and thereafter.

SEC. 107. PASSENGER PRECLEARANCE SERVICES.

(a) Continuation of Preclearance Services.--Notwithstanding
section 13031(f) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(f)) or any other
provision of law, the Customs Service shall, without regard
to whether a passenger processing fee is collected from a
person departing for the United States from Canada and
without regard to whether funds are appropriated pursuant to
subsection (b), provide the same level of enhanced
preclearance customs services for passengers arriving in the
United States aboard commercial aircraft originating in
Canada as the Customs Service provided for such passengers
during fiscal year 1997.
(b) Authorization of Appropriations for Preclearance
Services.--Notwithstanding section 13031(f) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(f)) or any other provision of law, there are
authorized to be appropriated, from the date of enactment of
this Act through September 30, 2001, such sums as may be
necessary for the Customs Service to ensure that it will
continue to provide the same, and where necessary increased,
levels of enhanced preclearance customs services as the
Customs Service provided during fiscal year 1997, in
connection with the arrival in the United States of
passengers aboard commercial aircraft whose flights
originated in Canada.
TITLE II--CUSTOMS PERFORMANCE REPORT

SEC. 201. CUSTOMS PERFORMANCE REPORT.

(a) In General.--Not later than 120 days after the date of
enactment of this Act, the Commissioner of Customs shall
prepare and submit to the appropriate committees the report
described in subsection (b).
(b) Report Described.--The report described in this
subsection shall include the following:
(1) Identification of objectives; establishment of
priorities.--
(A) An outline of the means the Customs Service intends to
use to identify enforcement priorities and trade facilitation
objectives.
(B) The reasons for selecting the objectives contained in
the most recent plan submitted by the Customs Service
pursuant to section 1115 of title 31, United States Code.
(C) The performance standards against which the appropriate
committees can assess the efforts of the Customs Service in
reaching the goals outlined in the plan described in
subparagraph (B).
(2) Implementation of the Customs Modernization Act.--
(A) A review of the Customs Service's implementation of
title VI of the North American Free Trade Agreement
Implementation Act, commonly known as the ``Customs
Modernization Act'', and the reasons why elements of that
Act, if any, have not been implemented.
(B) A review of the effectiveness of the informed
compliance strategy in obtaining higher levels of compliance,
particularly compliance by those industries that have been
the focus of the most intense efforts by the Customs Service
to ensure compliance with the Customs Modernization Act.
(C) A summary of the results of the reviews of the initial
industry-wide compliance assessments conducted by the Customs
Service as part of the agency's informed compliance
initiative.
(3) Improvement of commercial operations.--
(A) Identification of standards to be used in assessing the
performance and efficiency of the commercial operations of
the Customs Service, including entry and inspection
procedures, classification, valuation, country-of-origin
determinations, and duty drawback determinations.
(B) Proposals for--
(i) improving the performance of the commercial operations
of the Customs Service, particularly the functions described
in subparagraph (A), and
(ii) eliminating lengthy delays in obtaining rulings and
other forms of guidance on United States customs law,
regulations, procedures, or policies.
(C) Alternative strategies for ensuring that United States
importers, exporters, customs brokers, and other members of
the trade community have the information necessary to comply
with the customs laws of the United States and to conduct
their business operations accordingly.
(4) Review of enforcement responsibilities.--
(A) A review of the enforcement responsibilities of the
Customs Service.
(B) An assessment of the degree to which the current
functions of the Customs Service overlap with the functions
of other agencies and an identification of ways in which the
Customs Service can avoid duplication of effort.
(C) A description of the methods used to ensure against
misuse of personal search authority with respect to persons
entering the United States at authorized ports of entry.
(5) Strategy for comprehensive drug interdiction.--
(A) A comprehensive strategy for the Customs Service's role
in United States drug interdiction efforts.
(B) Identification of the respective roles of cooperating
agencies, such as the Drug Enforcement Administration, the
Federal Bureau of Investigation, the Coast Guard, and the
intelligence community, including--
(i) identification of the functions that can best be
performed by the Customs Service and the functions that can
best be performed by agencies other than the Customs Service;
and
(ii) a description of how the Customs Service plans to
allocate the additional drug interdiction resources
authorized by the Drug Free Borders Act of 1999.

[[Page S2939]]

(6) Enhancement of cooperation with the trade community.--
(A) Identification of ways to expand cooperation with
United States importers and customs brokers, United States
and foreign carriers, and other members of the international
trade and transportation communities to improve the detection
of contraband before it leaves a foreign port destined for
the United States.
(B) Identification of ways to enhance the flow of
information between the Customs Service and industry in order
to--
(i) achieve greater awareness of potential compliance
threats;
(ii) improve the design and efficiency of the commercial
operations of the Customs Service;
(iii) foster account-based management;
(iv) eliminate unnecessary and burdensome regulations; and
(v) establish standards for industry compliance with
customs laws.
(7) Allocation of resources.--
(A) An outline of the basis for the current allocation of
inspection and investigative personnel by the Customs
Service.
(B) Identification of the steps to be taken to ensure that
the Customs Service can detect any misallocation of the
resources described in subparagraph (A) among various ports
and a description of what means the Customs Service has for
reallocating resources within the agency to meet particular
enforcement demands or commercial operations needs.
(8) Automation and information technology.--
(A) Identification of the automation needs of the Customs
Service and an explanation of the current state of the
Automated Commercial System and the status of implementing a
replacement for that system.
(B) A comprehensive strategy for reaching the technology
goals of the Customs Service, including--
(i) an explanation of the proposed architecture of any
replacement for the Automated Commercial System and how the
architecture of the proposed replacement system best serves
the core functions of the Customs Service;
(ii) identification of public and private sector automation
projects that are comparable and that can be used as a
benchmark against which to judge the progress of the Customs
Service in meeting its technology goals;
(iii) an estimate of the total cost for each automation
project currently underway at the Customs Service and a
timetable for the implementation of each project; and
(iv) a summary of the options for financing each automation
project.
(9) Personnel policies.--
(A) An overview of current personnel practices, including a
description of--
(i) performance standards;
(ii) the criteria for promotion and termination;
(iii) the process for investigating complaints of bias and
sexual harassment;
(iv) the criteria used for conducting internal
investigations;
(v) the protection, if any, that is provided for
whistleblowers; and
(vi) the methods used to discover and eliminate corruption
within the Customs Service.
(B) Identification of workforce needs for the future and
training needed to ensure Customs Service personnel stay
abreast of developments in international business operations
and international trade that affect the operations of the
Customs Service, including identification of any situations
in which current personnel policies or practices may impede
achievement of the goals of the Customs Service with respect
to both enforcement and commercial operations.
(c) Appropriate Committees.--For purposes of this section,
the term ``appropriate committees'' means the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives.
______

By Mr. MOYNIHAN (for himself, Mr. Robb and Mr. Kerrey):
S. 659. A bill to amend the Internal Revenue Code of 1986 to require
pension plans to provide adequate notice to individuals whose future
benefit accruals are being significantly reduced, and for other
purposes; to the Committee on Finance.

the pension right to know act of 1999

Mr. MOYNIHAN. Mr. President, I rise today to introduce legislation to
provide greater disclosure to employees about the impact on their
retirement benefits of pension plan conversions.
Recent media accounts have reported that many large companies in
America are converting their traditional defined benefit pension plans
to something called ``cash balance plans.'' A cash balance plan is a
hybrid arrangement combining certain features of ``defined
contribution'' and ``defined benefit'' plans. Like defined contribution
plans, they provide each employee with an account in which his or her
benefits accrue. But cash balance plans are actually defined benefit
plans, and therefore provide a benefit for life which is insured by the
Pension Benefit Guaranty Corporation.
Cash balance plans, however, differ from other defined benefit plans
in the calculation of benefits. Whereas the value of an employee's
retirement benefit in a traditional defined benefit plan grows slowly
in the early years and more rapidly as one approaches retirement, cash
balance plans decrease this later-year growth and increase the early-
year growth. Consequently, younger employees tend to do better under
cash balance plans than under traditional plans, while older employees
typically do worse. In some cases, upon conversion to a cash balance
account an older worker's account balance may remain static for years--
typically referred to as the ``wear away'' period.
It appears that very few workers who have experienced the conversion
of their company retirement plan to a cash balance arrangement
understand the differences between the old and new plans. Those who do
often complain that the new plans treat older workers unfairly. One 49-
year-old engineer profiled by the Wall Street Journal--a rare employee
who knows how to calculate pension benefits--determined that his
pension value dropped by $56,000 the day his company converted to a
cash balance plan.
Even more disturbing are complaints from some employees that their
employers obscured the adverse effects of plan amendments. When an
employer changes the pension plan, the employees have a right to know
the consequences. There should be no surprises when it is time to
retire. Unfortunately, current law requires little in the way of
disclosure when a company changes its pension plan. Section 204(h) of
the Employee Retirement Income Security Act (ERISA) requires employers
to inform employees of a change to a pension plan resulting in a
reduction in future benefit accruals. But that is all. It does not
require specifics. The 204(h) disclosure can be, and often is,
satisfied with a brief statement buried deep in a company communication
to employees. It is imperative that we increase these disclosure
requirements regarding reductions in pension benefits.
The bill I am introducing today would require employers with 1,000 or
more employees to provide a ``statement of benefit change'' when
adopting plan amendments which significantly reduce benefits. The
statement of benefit change would provide a comparison, under the old
and new versions of the plan, of the following benefit measures; the
employee's accrued benefit and present value of accrued benefit at the
time of conversion; and the projected accrued benefit and projected
present value of accrued benefit three years, five years, and ten years
after conversion and at normal retirement age.
These benefit measures are standard concepts which will be well
understood by pension administrators, actuaries and others who work
with pensions. They will give the employee a clear picture of the
difference between the old and new plans immediately, periodically over
a ten-year period, and at retirement. The purpose of the three, five
and ten-year comparisons is to disclose any ``wear away'' period, in
which an employee would work without gaining any new benefits. Using
these comparisons, employees can get a clear picture of the relative
merits of the two plans.

In preparing this bill, my staff has consulted a number of actuaries
and pension attorneys. I believe it is a good approach to resolving the
problems I have discussed, and I am happy to work with others to
incorporate suggestions to further improve the bill.
Of course, many call this measure as intrusive or unnecessary. Some
employer groups have criticized the idea of requiring individualized
benefits calculations for every employee, saying that this requires
reviewing each employee's salary history. But that seems a strange
complaint given that we are talking about cash balance plans, which
already require highly individualized calculations. If an employer can
provide personalized account balances under a cash balance arrangement,
then the employer can provide such information for the old plan.
Moreover, recently completed regulations appear already to
contemplate individualized comparisons. Regulation 1.411(d)-6, just
finalized by the Internal Revenue Service, requires that in order

[[Page S2940]]

to determine if a reduction in future benefit accrual is
``significant,'' employers must compare the annual benefit at
retirement age under the amended plan with the same benefit under the
plan prior to amendment. Therefore, the concept of benefit comparisons
is not a new one.
And indeed, some companies are proving by their actions that benefit
comparisons are not unduly burdensome. Kodak, the prominent employer
headquartered in Rochester, New York, recently announced that it will
convert to a cash balance plan, and that it will give its 35,000
participants in the company-sponsored pension plan the choice between
the old plan and the new. To help employees make an informed decision,
Kodak will provide every plan participant with an individualized
comparison of his or her benefits under the old and new versions of the
plan. The company is also providing computer software that will allow
employees to make the comparisons themselves. That is the difference
between corporate behavior that is responsible and corporate behavior
that is unscrupulous. As usual, Kodak sets a fine example.
I believe that such disclosure not only is in the best interest of
employees, but also of the employer. Several class action lawsuits have
been filed in the last three years challenging conversions to cash
balance plans. These suits will likely cost hundreds of thousands, if
not millions, of dollars in attorneys' fees. But with proper
disclosure, they might not have occurred.
In closing, let me be clear about one thing. I take no position on
the underlying merit of cash balance plans. Ours is a voluntary pension
system, and companies must do what is right for them and their
employees. But I feel strongly that companies must fully and
comprehensibly inform their employees regarding whatever pension
benefits the company offers. Companies have no right to misrepresent
the projected benefit employees will receive under a cash balance plan
or any other pension arrangement.
It is time to let the sun shine on pension plan conversions. I urge
the Senate to support this important legislation.
I ask unanimous consent that the text of my bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 659

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 ``Pension Right to Know Act''.

SEC. 2. NOTICE REQUIREMENTS FOR LARGE PENSION PLANS
SIGNIFICANTLY REDUCING FUTURE PENSION BENEFIT
ACCRUALS.

(a) Plan Requirement.--Section 401(a) of the Internal
Revenue Code of 1986 (relating to qualified pension, profit-
sharing, and stock bonus plans) is amended by inserting after
paragraph (34) the following new paragraph:
``(35) Notice requirements for large defined benefit plans
significantly reducing future benefit accruals.--
``(A) In general.--If a large defined benefit plan adopts
an amendment which has the effect of significantly reducing
the rate of future benefit accrual of 1 or more participants,
a trust which is part of such plan shall not constitute a
qualified trust under this section unless, after adoption of
such amendment and not less than 15 days before its effective
date, the plan administrator provides--
``(i) a written statement of benefit change described in
subparagraph (B) to each applicable individual, and
``(ii) a written notice setting forth the plan amendment
and its effective date to each employee organization
representing participants in the plan.

Any such notice may be provided to a person designated, in
writing, by the person to which it would otherwise be
provided. The plan administrator shall not be treated as
failing to meet the requirements of this subparagraph merely
because the statement or notice is provided before the
adoption of the plan amendment if no material modification of
the amendment occurs before the amendment is adopted.
``(B) Statement of benefit change.--A statement of benefit
change described in this subparagraph shall--
``(i) be written in a manner calculated to be understood by
the average plan participant, and
``(ii) include the information described in subparagraph
(C).
``(C) Information contained in statement of benefit
change.--The information described in this subparagraph
includes the following:
``(i) Notice setting forth the plan amendment and its
effective date.
``(ii) A comparison of the following amounts under the plan
with respect to an applicable individual, determined both
with and without regard to the plan amendment:

``(I) The accrued benefit and the present value of the
accrued benefit as of the effective date.
``(II) The projected accrued benefit and the projected
present value of the accrued benefit as of the date which is
3 years, 5 years, and 10 years from the effective date and as
of the normal retirement age.

``(iii) A table of all annuity factors used to calculate
benefits under the plan, presented in the form provided in
section 72 and the regulations thereunder.

Benefits described in clause (ii) shall be stated separately
and shall be calculated by using the applicable mortality
table and the applicable interest rate under section
417(e)(3)(A).
``(D) Large defined benefit plan; applicable individual.--
For purposes of this paragraph--
``(i) Large defined benefit plan.--The term `large defined
benefit plan' means any defined benefit plan which had 1,000
or more participants who had accrued a benefit under the plan
(whether or not vested) as of the last day of the plan year
preceding the plan year in which the plan amendment becomes
effective.
``(ii) Applicable individual.--The term `applicable
individual' means--

``(I) each participant in the plan, and
``(II) each beneficiary who is an alternate payee (within
the meaning of section 414(p)(8)) under an applicable
qualified domestic relations order (within the meaning of
section 414(p)(1)(A)).

``(E) Accrued benefit; projected retirement benefit.--For
purposes of this paragraph--
``(i) Present value of accrued benefit.--The present value
of an accrued benefit of any applicable individual shall be
calculated as if the accrued benefit were in the form of a
single life annuity commencing at the participant's normal
retirement age (and by taking into account any early
retirement subsidy).
``(ii) Projected accrued benefit.--

``(I) In general.--The projected accrued benefit of any
applicable individual shall be calculated as if the benefit
were payable in the form of a single life annuity commencing
at the participant's normal retirement age (and by taking
into account any early retirement subsidy).
``(II) Compensation and other assumptions.--Such benefit
shall be calculated by assuming that compensation and all
other benefit factors would increase for each plan year
beginning after the effective date of the plan amendment at a
rate equal to the median average of the CPI increase
percentage (as defined in section 215(i) of the Social
Security Act) for the 5 calendar years immediately preceding
the calendar year before the calendar year in which such
effective date occurs.
``(III) Benefit factors.--For purposes of subclause (II),
the term `benefit factors' means social security benefits and
all other relevant factors under section 411(b)(1)(A) used to
compute benefits under the plan which had increased from the
2d plan year preceding the plan year in which the effective
date of the plan amendment occurs to the 1st such preceding
plan year.

``(iii) Normal retirement age.--The term `normal retirement
age' means the later of--

``(I) the date determined under section 411(a)(8), or
``(II) the date a plan participant attains age 62.''

(b) Amendments to ERISA.--
(1) Benefit statement requirement.--Section 204(h) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1054(h)) is amended by adding at the end the following new
paragraphs:
``(3)(A) If paragraph (1) applies to the adoption of a plan
amendment by a large defined benefit plan, the plan
administrator shall, after adoption of such amendment and not
less than 15 days before its effective date, provide with the
notice under paragraph (1) a written statement of benefit
change described in subparagraph (B) to each applicable
individual.
``(B) A statement of benefit change described in this
subparagraph shall--
``(i) be written in a manner calculated to be understood by
the average plan participant, and
``(ii) include the information described in subparagraph
(C).
``(C) The information described in this subparagraph
includes the following:
``(i) A comparison of the following amounts under the plan
with respect to an applicable individual, determined both
with and without regard to the plan amendment:
``(I) The accrued benefit and the present value of the
accrued benefit as of the effective date.
``(II) The projected accrued benefit and the projected
present value of the accrued benefit as of the date which is
3 years, 5 years, and 10 years from the effective date and as
of the normal retirement age.
``(ii) A table of all annuity factors used to calculate
benefits under the plan, presented in the form provided in
section 72 of the Internal Revenue Code of 1986 and the
regulations thereunder.

[[Page S2941]]

Benefits described in clause (i) shall be stated separately
and shall be calculated by using the applicable mortality
table and the applicable interest rate under section
417(e)(3)(A) of such Code.
``(D) For purposes of this paragraph--
``(i) The term `large defined benefit plan' means any
defined benefit plan which had 1,000 or more participants who
had accrued a benefit under the plan (whether or not vested)
as of the last day of the plan year preceding the plan year
in which the plan amendment becomes effective.
``(ii) The term `applicable individual' means an individual
described in subparagraph (A) or (B) of paragraph (1).
``(E) For purposes of this paragraph--
``(i) The present value of an accrued benefit of any
applicable individual shall be calculated as if the accrued
benefit were in the form of a single life annuity commencing
at the participant's normal retirement age (and by taking
into account any early retirement subsidy).
``(ii)(I) The projected accrued benefit of any applicable
individual shall be calculated as if the benefit were payable
in the form of a single life annuity commencing at the
participant's normal retirement age (and by taking into
account any early retirement subsidy).
``(II) Such benefit shall be calculated by assuming that
compensation and all other benefit factors would increase for
each plan year beginning after the effective date of the plan
amendment at a rate equal to the median average of the CPI
increase percentage (as defined in section 215(i) of the
Social Security Act) for the 5 calendar years immediately
preceding the calendar year before the calendar year in which
such effective date occurs.
``(III) For purposes of subclause (II), the term `benefit
factors' means social security benefits and all other
relevant factors under section 204(b)(1)(A) used to compute
benefits under the plan which had increased from the 2d plan
year preceding the plan year in which the effective date of
the plan amendment occurs to the 1st such preceding plan
year.
``(iii) The term `normal retirement age' means the later
of--
``(I) the date determined under section 3(24), or
``(II) the date a plan participant attains age 62.
``(4) A plan administrator shall not be treated as failing
to meet the requirements of this subsection merely because
the notice or statement is provided before the adoption of
the plan amendment if no material modification of the
amendment occurs before the amendment is adopted.''
(2) Conforming amendment.--Section 204(h)(1) of such Act
(29 U.S.C. 1054(h)(1)) is amended by inserting ``(including
any written statement of benefit change if required by
paragraph (3))'' after ``written notice''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to plan amendments taking effect in plan years
beginning on or after the earlier of--
(A) the later of--
(i) January 1, 1999, or
(ii) the date on which the last of the collective
bargaining agreements pursuant to which the plan is
maintained terminates (determined without regard to any
extension thereof after the date of the enactment of this
Act), or
(B) January 1, 2001.
(2) Exception where notice given.--The amendments made by
this section shall not apply to any plan amendment for which
written notice was given to participants or their
representatives before March 17, 1999, without regard to
whether the amendment was adopted before such date.
(3) Special rule.--The period for providing any notice
required by, or any notice the contents of which are changed
by, the amendments made by this Act shall not end before the
date which is 6 months after the date of the enactment of
this Act.
______

By Mr. BINGAMAN (for himself, Mr. Craig, Ms. Mikulski, Mr.
Thurmond, Mr. Daschle, Ms. Collins, Mr. Johnson, Ms. Snowe, Mr.
Dorgan, Mr. Mack, Mr. Hollings, Mr. Reed, Mr. Conrad, and Mr.
Crapo):
S. 660. A bill to amend title XVIII of the Social Security Act to
provide for coverage under part B of the medicare program of medical
nutrition therapy services furnished by registered dietitians and
nutrition professionals; to the Committee on Finance.
Mr. BINGAMAN. Mr. President, I rise today to introduce the Medical
Nutrition Therapy Act of 1999 on behalf of myself, my friend and
colleague from Idaho, Senator Craig, and a bipartisan group of
additional Senators.
This bipartisan measure provides for coverage under Part B of the
Medicare program for medical nutrition therapy services by a registered
dietician. Medical nutrition therapy is generally defined as the
assessment of patient nutritional status followed by therapy, ranging
from diet modification to administration of specialized nutrition
therapies such as intravenous or tube feedings. It has proven to be a
medically necessary and cost-effective way of treating and controlling
many disease entities such as diabetes, renal disease, cardiovascular
disease and severe burns.
Currently there is no consistent Part B coverage policy for medical
nutrition and this legislation will bring needed uniformity to the
delivery of this important care, as well as save taxpayer money.
Coverage for medical nutrition therapy can save money by reducing
hospital admissions, shortening hospital stays, decreasing the number
of complications, and reducing the need for physician follow-up visits.
The treatment of patients with diabetes and cardiovascular disease
accounts for a full 60% of Medicare expenditures. I want to use
diabetes as an example for the need for this legislation. There are
very few families who are not touched by diabetes. The burden of
diabetes is disproportionately high among ethnic minorities in the
United States. According to the American Journal of Epidemiology,
mortality due to diabetes is higher nationwide among blacks than
whites. It is higher among American Indians than among any other ethnic
group.
In my state of New Mexico, Native Americans are experiencing an
epidemic of Type II diabetes. Medical nutrition therapy is integral to
their diabetes care. In fact, information from the Indian Health
Service shows that medical nutrition therapy provided by professional
dieticians results in significant improvements in medical outcomes in
people with Type II diabetes. For example, complications of diabetes
such as end stage renal failure that leads to dialysis can be prevented
with adequate intervention. Currently, the number of dialysis patients
in the Navajo population is doubling every five years. Mr, President,
we must place our dollars in the effective, preventive treatment of
medical nutrition therapy rather than face the grim reality of having
to continue to build new dialysis units.
Ensuring the solvency of the Medicare Part A Trust Fund is one of our
most difficult challenges and one that calls for creative, effective
solutions. Coverage for medical nutrition therapy is one important way
to help address that challenge. It is exactly the type of cost
effective care we should encourage. It will satisfy two of our most
important priorities in Medicare: providing program savings while
maintaining a high level of quality care.
Mr. President, 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. 660

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

SECTION 1. SHORT TITLE; FINDINGS.

(a) Short Title.--This Act may be cited as the ``Medicare
Medical Nutrition Therapy Act of 1999''.
(b) Findings.--Congress finds as follows:
(1) Medical nutrition therapy is a medically necessary and
cost-effective way of treating and controlling many diseases
and medical conditions affecting the elderly, including HIV,
AIDS, cancer, kidney disease, diabetes, heart disease,
pressure ulcers, severe burns, and surgical wounds.
(2) Medical nutrition therapy saves health care costs by
speeding recovery and reducing the incidence of
complications, resulting in fewer hospitalizations, shorter
hospital stays, and reduced drug, surgery, and treatment
needs.
(3) A study conducted by The Lewin Group shows that, after
the third year of coverage, savings would be greater than
costs for coverage of medical nutrition therapy for all
medicare beneficiaries, with savings projected to grow
steadily in following years.
(4) The Agency for Health Care Policy and Research has
indicated in its practice guidelines that nutrition is key to
both the prevention and the treatment of pressure ulcers
(also called bed sores) which annually cost the health care
system an estimated $1,300,000,000 for treatment.
(5) Almost 17,000,000 patients each year are treated for
illnesses or injuries that stem from or place them at risk of
malnutrition.
(6) Because medical nutrition therapy is not covered under
part B of the medicare program and because more and more
health care is delivered on an outpatient basis, many
patients are denied access to the effective, low-tech
treatment they need, resulting in an increased incidence of
complications and a need for higher cost treatments.

SEC. 2. MEDICARE COVERAGE OF MEDICAL NUTRITION THERAPY
SERVICES.

(a) Coverage.--Section 1861(s)(2) of the Social Security
Act (42 U.S.C. 1395x(s)(2)) is amended--

[[Page S2942]]

(1) by striking ``and'' at the end of subparagraph (S);
(2) by striking the period at the end of subparagraph (T)
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(U) medical nutrition therapy services (as defined in
subsection (uu)(1));''.
(b) Services Described.--Section 1861 of such Act (42
U.S.C. 1395x) is amended by adding at the end the following
new subsection:

``Medical Nutrition Therapy Services; Registered Dietitian or Nutrition
Professional

``(uu)(1) The term `medical nutrition therapy services'
means nutritional diagnostic, therapy, and counseling
services for the purpose of disease management which are
furnished by a registered dietitian or nutrition professional
(as defined in paragraph (2)) pursuant to a referral by a
physician (as defined in subsection (r)(1)).
``(2) Subject to paragraph (3), the term `registered
dietitian or nutrition professional' means an individual
who--
``(A) holds a baccalaureate or higher degree granted by a
regionally accredited college or university in the United
States (or an equivalent foreign degree) with completion of
the academic requirements of a program in nutrition or
dietetics, as accredited by an appropriate national
accreditation organization recognized by the Secretary for
this purpose;
``(B) has completed at least 900 hours of supervised
dietetics practice under the supervision of a registered
dietitian or nutrition professional; and
``(C)(i) is licensed or certified as a dietitian or
nutrition professional by the State in which the services are
performed, or
``(ii) in the case of an individual in a State that does
not provide for such licensure or certification, meets such
other criteria as the Secretary establishes.
``(3) Subparagraphs (A) and (B) of paragraph (2) shall not
apply in the case of an individual who, as of the date of
enactment of this subsection, is licensed or certified as a
dietitian or nutrition professional by the State in which
medical nutrition therapy services are performed.''.
(c) Payment.--Section 1833(a)(1) of such Act (42 U.S.C.
1395l(a)(1)) is amended--
(1) by striking ``and'' before ``(S)'', and
(2) by inserting before the semicolon at the end the
following: ``, and (T) with respect to medical nutrition
therapy services (as defined in section 1861(uu)), the amount
paid shall be 80 percent of the lesser of the actual charge
for the services or the amount determined under the fee
schedule established under section 1848(b) for the same
services if furnished by a physician''.
(d) Effective Date.--The amendments made by this section
apply to services furnished on or after January 1, 2000.

Mr. CRAIG. Mr. President, today Senator Bingaman and I join to
introduce a very important piece of legislation, the Medical Nutrition
Therapy Act. I'm pleased to have the support of a number of Senators in
introducing this legislation: Senators Mack, Thurmond, Mikulski, Snowe,
Daschle, Collins, Johnson, Crapo, Dorgan, Hollings, Reed, and Conrad.
This bill simply expands Medicare Part B coverage to give seniors
access to medical nutrition therapy services by registered dietitians
and other nutrition professionals. Currently there is no direct
coverage for services provided by registered dietitians, and, because
they are uniquely qualified to provide medical nutrition therapy,
beneficiaries are essentially denied access to this cost effective and
efficacious form of care.
Nutrition is one of the most basic elements of life. From the moment
we are born to the moment we die, nutrition plays a critical role. It
influences how we grow, how our brain develops, how we feel, and how
our bodies prevent and fight disease. For decades we have known that
nutrition can influence the most serious life threatening diseases,
such as cancer, heart disease, stroke, diabetes, and high blood
cholesterol.
Experts have proven that proper nutrition may not only help prevent
disease, but also is central to controlling and treating disease.
Medical nutrition therapy plays a major role in treating some of the
most threatening illnesses. It significantly improves the quality of
life of seriously ill patients. It also saves health care costs by
speeding recovery and reducing the incidence of complications,
resulting in fewer hospitalizations, shorter hospital stays, and
reduced drug, surgery, and treatment needs.
Because medical nutrition therapy is not currently covered by
Medicare Part B and because more and more health care is delivered on
an outpatient basis, many patients are denied access to the effective,
low-tech treatment they need, resulting in an increased incidence of
complications and a need for higher cost treatments.
Medical nutritional therapy is an integral part of cost effective
health care.
Our legislation would remedy this defect in Medicare Part B,
improving health care and lowering costs. I invite all our colleagues
to join Senator Bingaman and myself in working for this important
reform.
______

By Mr. ABRAHAM (for himself, Mr. Hatch, Mr. Lott, Mr. Sessions,
Mr. Nickles, Mr. Coverdell, Mr. Craig, Mr. Kyl, Mr. Enzi, Mr.
McCain, Mr. Hutchinson, Mr. Santorum, Mr. Brownback, Mr.
Inhofe, Mr. Smith of New Hampshire, Mr. Helms, Mr. Grassley,
and Mr. DeWine):
S. 661. A bill to amend title 18, United States Code, to prohibit
taking minors across State lines in circumvention of laws requiring the
involvement of parents in abortion decisions; to the Committee on the
Judiciary.

CHILD CUSTODY PROTECTION ACT

Mr. ABRAHAM. Mr. President, today, I along with 19 of my colleagues
will be re-introducing the Child Custody Protection Act. This
legislation will make it a federal offense to transport a minor across
state lines to obtain an abortion if this action circumvents a state
parental involvement law.
Last year, this bill received a majority of votes but fell short of
the sixty votes needed for cloture. It is my hope that this year the
Senate will listen to the 74 percent of Americans who favor parental
consent prior to a minor girl receiving an abortion. This Baseline &
Associates poll, conducted last summer, reveals that the American
public favors parental consent laws and when asked specifically about
this legislation, the American public is even more supportive. Eighty
five percent of those who participated in the poll believed that minor
girls should not be taken across state lines to obtain an abortion
without their parents' knowledge.
These poll numbers reinforce what common sense already tells us:
parents need to be involved with the major medical and emotional
decisions of their children. When they are not involved, the health and
emotional well being of their child is in jeopardy.
Last year, we heard from Joyce Farley, whose 13 year old daughter was
raped, taken across state lines for a secret abortion by the rapist's
mother, and dropped off 30 miles from home suffering from complications
from an incomplete abortion. Mrs. Farley told of the trauma to her
daughter from this stranger's actions. Luckily, Mrs. Farley found out
about the abortion and could obtain appropriate medical care for her
daughter. If this abortion had remained secret, Mrs. Farley's
daughter's life could have been in danger.
Whatever one's position on abortion, every American should recognize
the crucial role of parents in their minor child's decision whether or
not to undergo this procedure. Parental notification and consent laws
exist for a reason. While most such laws provide for possible judicial
bypass, they by nature intend to protect the rights and integrity of
the family. More than 20 states have recognized the need to protect
both the minor and the integrity of the family and have parental
involvement laws in effect. My legislation adds no new provisions to
state-enacted parental involvement laws. It does not impose parental
involvement requirements on states that have not passed such laws. The
Child Custody Protection Act simply prevents the undermining of
parental involvement laws in states that have them.
I hope my colleagues will support me in working to quickly pass this
common sense legislation. I ask unanimous consent that the text of the
bill and section by section analysis be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 661

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 ``Child Custody Protection
Act''.

SEC. 2. TRANSPORTATION OF MINORS IN CIRCUMVENTION OF CERTAIN
LAWS RELATING TO ABORTION.

(a) In General.--Title 18, United States Code, is amended
by inserting after chapter 117 the following:

[[Page S2943]]

``CHAPTER 117A--TRANSPORTATION OF MINORS IN CIRCUMVENTION OF CERTAIN
LAWS RELATING TO ABORTION

``Sec.
``2431. Transportation of minors in circumvention of certain laws
relating to abortion.

``Sec. 2431. Transportation of minors in circumvention of
certain laws relating to abortion

``(a) Offense.--
``(1) Generally.--Except as provided in subsection (b),
whoever knowingly transports an individual who has not
attained the age of 18 years across a State line, with the
intent that such individual obtain an abortion, and thereby
in fact abridges the right of a parent under a law requiring
parental involvement in a minor's abortion decision, in force
in the State where the individual resides, shall be fined
under this title or imprisoned not more than one year, or
both.
``(2) Definition.--For the purposes of this subsection, an
abridgement of the right of a parent occurs if an abortion is
performed on the individual, in a State other than the State
where the individual resides, without the parental consent or
notification, or the judicial authorization, that would have
been required by that law had the abortion been performed in
the State where the individual resides.
``(b) Exceptions.--(1) The prohibition of subsection (a)
does not apply if the abortion was necessary to save the life
of the minor because her life was endangered by a physical
disorder, physical injury, or physical illness, including a
life endangering physical condition caused by or arising from
the pregnancy itself.
``(2) An individual transported in violation of this
section, and any parent of that individual, may not be
prosecuted or sued for a violation of this section, a
conspiracy to violate this section, or an offense under
section 2 or 3 based on a violation of this section.
``(c) Affirmative Defense.--It is an affirmative defense to
a prosecution for an offense, or to a civil action, based on
a violation of this section that the defendant reasonably
believed, based on information the defendant obtained
directly from a parent of the individual or other compelling
facts, that before the individual obtained the abortion, the
parental consent or notification, or judicial authorization
took place that would have been required by the law requiring
parental involvement in a minor's abortion decision, had the
abortion been performed in the State where the individual
resides.
``(d) Civil Action.--Any parent who suffers legal harm from
a violation of subsection (a) may obtain appropriate relief
in a civil action.
``(e) Definitions.--For the purposes of this section--
``(1) a law requiring parental involvement in a minor's
abortion decision is a law--
``(A) requiring, before an abortion is performed on a
minor, either--
``(i) the notification to, or consent of, a parent of that
minor; or
``(ii) proceedings in a State court; and
``(B) that does not provide as an alternative to the
requirements described in subparagraph (A) notification to or
consent of any person or entity who is not described in that
subparagraph;
``(2) the term `parent' means--
``(A) a parent or guardian;
``(B) a legal custodian; or
``(C) a person standing in loco parentis who has care and
control of the minor, and with whom the minor regularly
resides;

who is designated by the law requiring parental involvement
in the minor's abortion decision as a person to whom
notification, or from whom consent, is required;
``(3) the term `minor' means an individual who is not older
than the maximum age requiring parental notification or
consent, or proceedings in a State court, under the law
requiring parental involvement in a minor's abortion
decision; and
``(4) the term `State' includes the District of Columbia
and any commonwealth, possession, or other territory of the
United States.''.
(b) Clerical Amendment.--The table of chapters for part I
of title 18, United States Code, is amended by inserting
after the item relating to chapter 117 the following new
item:`Q02
``117A. Transportation of minors in circumvention of certain laws
relating to abortion.........................................2431.''.
.....................................................

The Child Custody Protection Act--Section-by-Section Analysis

Section 1. Short title
This section states that the short title of this bill is
the ``Child Custody Protection Act.''
Section 2. Transportation of minors to avoid certain laws
relating to abortion
Section 2(a) amends title 18 of the United States Code by
inserting after chapter 117 a proposed new chapter 117A
titled ``Transportation of minors to avoid certain laws
relating to abortion,'' within which would be included a new
section 2431 on this subject.
Subsection (a) of proposed section 2431 outlaws the knowing
transportation across a State line of a person under 18 years
of age with the intent that she obtain an abortion, in
abridgement of a parent's right of involvement according to
State law. This subsection requires only knowledge by the
defendant that he or she was transporting the person across
State lines with the intent that she obtain an abortion. It
does not require that the transporter know the requirement of
the home State law, know that they have not been complied
with, or indeed know anything about the existence of the
State law. By the same token, it does not require that the
defendant know that his or her actions violate Federal law,
or indeed know anything about the Federal law. A reasonable
belief that parental notice or consent, or judicial
authorization, has been given, is an affirmative defense
whose terms are set out in subsection (c).
Subsection (a), paragraph (1), imposes a maximum of 1 year
imprisonment or a fine, or both.
Subsection (a), paragraph (2), specifies the criteria for a
violation of the parental right under this statute as
follows: an abortion must be performed on a minor in a State
other than the minor's residence and without the parental
consent or notification, or the judicial authorization, that
would have been required had the abortion been performed in
the minor's State or residence.
Subsection (b), paragraph (1) specifies that subsection (a)
does not apply if the abortion is necessary to save the life
of the minor. This subsection is not intended to preempt any
other exceptions that a State parental involvement law that
meets the definitions set out in subsection (e)(1) and (e)(2)
may recognize.
Subsection (b), paragraph (2), clarifies that neither the
minor being transported nor her parents may be prosecuted or
sued for a violation of this bill.
Subsection (c) provides an affirmative defense to
prosecution or civil action based on violation of the act
where the defendant reasonably believed, based on information
obtained directly from the girl's parent or other compelling
factors, that the requirements of the girl's State of
residence regarding parental involvement or judicial
authorization in abortions had been satisfied. A minor's own
assertion to a defendant that her parents knew or had
consented would not, by itself, constitute sufficient basis
to make out this affirmative defense.
Subsection (d) establishes a civil cause of action for a
parent who suffers legal harm from a violation of subsection
(a).
Subsection (e) sets forth definitions of certain terms in
this bill.
Subsection (e)(1)(A) defines ``a law requiring parental
involvement in a minor's abortion decision'' to be a law
requiring either ``the notification to, or consent of, a
parent of that minor or proceedings in a State court.''
Subsection (e)(1)(B) stipulates that a law conforming to
the definition in (e)(1)(A) cannot provide notification to or
consent of any person or entity other than a ``parent'' as
defined in the subsequent section.
Subsection (e)(2) defines ``parent'' to mean a parent or
guardian, or a legal custodian, or a person standing in loco
parentis (if that person has ``care and control'' of the
minor and is a person with whom the minor ``regularly
resides'') and who is designated by the applicable State
parental involvement law as the person to whom notification,
or from whom consent, is required. In this context, a person
in loco parentis has the meaning it has at common law: a
person who effectively functions as a child's guardian, but
without the legal formalities of guardianship having been
met. It would not include individuals who are not truly
exercising the responsibilities of parents, such as an adult
boyfriend with whom the minor may be living.
Subsection (e)(3) defines ``minor'' to mean a person not
older than the maximum age requiring parental notification or
consent, or proceedings in a State court, under the parental
involvement law of the State, where the minor resides.
Subsection (E)(4) defines ``State'' to include the District
of Columbia ``and any commonwealth, possession, or other
territory of the United States.''
Section 2(b) is a clerical amendment to insert the new
chapter in the table of chapters for part I of title 18.
______

By Mr. CHAFEE (for himself, Ms. Mikulski, Mr. Moynihan, Ms.
Snowe, Mr. Smith of Oregon, Mr. Harkin, Mr. Cochran, Mr.
Durbin, Mrs. Murray, Mr. Leahy, Mr. Rockefeller, Mr. Lieberman,
Mr. Lautenberg, Mrs. Feinstein, Mr. Bingaman, Mr. Sarbanes, Mr.
Hollings, Mr. Wellstone, Mr. Cleland, Mr. Kennedy, Mr. Johnson,
Mr. Robb, Mrs. Boxer, Mr. Reid, and Mr. Kerrey):
S. 662. A bill to amend title XIX of the Social Security Act to
provide medical assistance for certain women screened and found to have
breast or cervical cancer under a federally funded screening program;
to the Committee on Finance.

the breast and cervical cancer treatment act of 1999

Mr. CHAFEE. Mr. President, I am pleased today to introduce
legislation that will provide life-saving treatment to women who have
been diagnosed with breast and cervical cancer. I am very proud of this
legislation and want to thank everyone who worked so hard to put this
bill together.
I want to take just a few minutes to explain what this legislation
does. In

[[Page S2944]]

1990 Congress created a program, run by the Centers for Disease
Control, to provide breast and cervical cancer screening for low-
income, uninsured women. This program is run in all 50 states and is
tremendously successful. The CDC screens more than 500,000 women ever
year, detecting more than 3,000 cases of breast cancer and 350 cases of
cervical cancer.
The problem comes about when these women try to get treatment for the
cancer. They are uninsured, and are not eligible for either Medicaid or
Medicare. They must rely on volunteers and charitable providers to find
treatment services. Treatment for many is delayed, and many do not
receive the crucial follow-up care. Some never receive treatment and
others are left with huge medical bills they cannot pay.
The legislation we are introducing today provides a simple solution
to this problem. It gives states the option to provide those women,
many of whom are mothers of young children, who are diagnosed with
breast or cervical cancer under the CDC's screening program to obtain
treatment through the medicaid program. The coverage would continue
until the treatment and follow-up visits are completed.
This is a modest, low-cost solution to a life or death problem. It
costs less than $60 million per year to provide this critical
treatment. I hope very much that we will be able to pass this bill this
year.
I ask that the legislation be printed in the Record.
The bill follows:

S. 662

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

SECTION 1. OPTIONAL MEDICAID COVERAGE OF CERTAIN BREAST OR
CERVICAL CANCER PATIENTS.

(a) Coverage as Optional Categorically Needy Group.--
(1) In general.--Section 1902(a)(10)(A)(ii) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)) is amended--
(A) in subclause (XIII), by striking ``or'' at the end;
(B) in subclause (XIV), by adding ``or'' at the end; and
(C) by adding at the end the following:

``(XV) who are described in subsection (aa) (relating to
certain breast or cervical cancer patients);''.

(2) Group described.--Section 1902 of the Social Security
Act (42 U.S.C. 1396a) is amended by adding at the end the
following:
``(aa) Individuals described in this paragraph are
individuals who--
``(1) are not described in subsection (a)(10)(A)(i);
``(2) have not attained age 65;
``(3) have been screened for breast and cervical cancer
under the Centers for Disease Control and Prevention breast
and cervical cancer early detection program established under
title XV of the Public Health Service Act (42 U.S.C. 300k et
seq.) in accordance with the requirements of section 1504 of
that Act (42 U.S.C. 300n) and need treatment for breast or
cervical cancer; and
``(4) are not otherwise covered under creditable coverage,
as defined in section 2701(c) of the Public Health Service
Act (45 U.S.C. 300gg(c)).''.
(3) Limitation on Benefits.--Section 1902(a)(10) of the
Social Security Act (42 U.S.C. 1396a(a)(10)) is amended in
the matter following subparagraph (F)--
(A) by striking ``and (XIII)'' and inserting ``(XIII)'';
and
(B) by inserting ``, and (XIV) the medical assistance made
available to an individual described in subsection (aa) who
is eligible for medical assistance only because of
subparagraph (A)(ii)(XV) shall be limited to medical
assistance provided during the period in which such an
individual requires treatment for breast or cervical cancer''
before the semicolon.
(4) Conforming amendments.--Section 1905(a) of the Social
Security Act (42 U.S.C. 1396d(a)) is amended in the matter
preceding paragraph (1)--
(A) in clause (x), by striking ``or'' at the end;
(B) in clause (xi), by adding ``or'' at the end; and
(C) by inserting after clause (xi) the following:
``(xii) individuals described in section 1902(aa),''.
(b) Presumptive Eligibility.--
(1) In general.--Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) is amended by inserting after section
1920A the following:

``presumptive eligibility for certain breast or cervical cancer
patients

``Sec. 1920B. (a) State Option.--A State plan approved
under section 1902 may provide for making medical assistance
available to an individual described in section 1902(aa)
(relating to certain breast or cervical cancer patients)
during a presumptive eligibility period.
``(b) Definitions.--For purposes of this section:
``(1) Presumptive eligibility period.--The term
`presumptive eligibility period' means, with respect to an
individual described in subsection (a), the period that--
``(A) begins with the date on which a qualified entity
determines, on the basis of preliminary information, that the
individual is described in section 1902(aa); and
``(B) ends with (and includes) the earlier of--
``(i) the day on which a determination is made with respect
to the eligibility of such individual for services under the
State plan; or
``(ii) in the case of such an individual who does not file
an application by the last day of the month following the
month during which the entity makes the determination
referred to in subparagraph (A), such last day.
``(2) Qualified entity.--
``(A) In general.--Subject to subparagraph (B), the term
`qualified entity' means any entity that--
``(i) is eligible for payments under a State plan approved
under this title; and
``(ii) is determined by the State agency to be capable of
making determinations of the type described in paragraph
(1)(A).
``(B) Regulations.--The Secretary may issue regulations
further limiting those entities that may become qualified
entities in order to prevent fraud and abuse and for other
reasons.
``(C) Rule of construction.--Nothing in this paragraph
shall be construed as preventing a State from limiting the
classes of entities that may become qualified entities,
consistent with any limitations imposed under subparagraph
(B).
``(c) Administration.--
``(1) In general.--The State agency shall provide qualified
entities with--
``(A) such forms as are necessary for an application to be
made by an individual described in subsection (a) for medical
assistance under the State plan; and
``(B) information on how to assist such individuals in
completing and filing such forms.
``(2) Notification requirements.--A qualified entity that
determines under subsection (b)(1)(A) that an individual
described in subsection (a) is presumptively eligible for
medical assistance under a State plan shall--
``(A) notify the State agency of the determination within 5
working days after the date on which determination is made;
and
``(B) inform such individual at the time the determination
is made that an application for medical assistance under the
State plan is required to be made by not later than the last
day of the month following the month during which the
determination is made.
``(3) Application for medical assistance.--In the case of
an individual described in subsection (a) who is determined
by a qualified entity to be presumptively eligible for
medical assistance under a State plan, the individual shall
apply for medical assistance under such plan by not later
than the last day of the month following the month during
which the determination is made.
``(d) Payment.--Notwithstanding any other provision of this
title, medical assistance that--
``(1) is furnished to an individual described in subsection
(a)--
``(A) during a presumptive eligibility period;
``(B) by a entity that is eligible for payments under the
State plan; and
``(2) is included in the care and services covered by the
State plan;

shall be treated as medical assistance provided by such plan
for purposes of section 1903(a)(5)(B).''.
(2) Conforming amendments.--
(A) Section 1902(a)(47) of the Social Security Act (42
U.S.C. 1396a(a)(47)) is amended by inserting before the
semicolon at the end the following: ``and provide for making
medical assistance available to individuals described in
subsection (a) of section 1920B during a presumptive
eligibility period in accordance with such section''.
(B) Section 1903(u)(1)(D)(v) of such Act (42 U.S.C.
1396b(u)(1)(D)(v)) is amended--
(i) by striking ``or for'' and inserting ``, for''; and
(ii) by inserting before the period the following: ``, or
for medical assistance provided to an individual described in
subsection (a) of section 1920B during a presumptive
eligibility period under such section''.
(c) Enhanced Match.--Section 1903(a)(5) of the Social
Security Act (42 U.S.C. 1396b(a)(5)) is amended--
(1) by striking ``an'' and inserting ``(A) an'';
(2) by adding ``plus'' after the semicolon; and
(3) by adding at the end the following:
``(B) an amount equal to 75 percent of the sums expended
during such quarter which are attributable to the offering,
arranging, and furnishing (directly or on a contract basis)
of medical assistance to an individual described in section
1902(aa); plus''.
(d) Effective Date.--The amendments made by this section
apply to medical assistance furnished on or after October 1,
1999, without regard to whether final regulations to carry
out such amendments have been promulgated by such
date.

Ms. MIKULSKI. Mr. President, I rise to join my distinguished
colleagues Senators Chafee, Moynihan, Snowe, and to introduce
legislation providing breast and cervical cancer treatment services to
women who were diagnosed

[[Page S2945]]

with these cancers through the National Breast and Cervical Cancer
Early Detection Program (NBCCEDP). This bill would give states the
option to provide Medicaid coverage for the duration of breast and
cervical cancer treatment to eligible women who were screened through
the CDC program and found to have these cancers. This is a bill whose
time has come.
In 1990, I was proud to be the chief Senate sponsor of the Breast and
Cervical Cancer Mortality Prevention Act which created the National
Breast and Cervical Cancer Early Detection Program (NBCCEDP) at the
CDC. The time was right for us to create that program. Since its
inception, the CDC screening program has provided more than 721,000
mammograms and 851,000 Pap tests to more than 1.2 million women. Among
the women screened, over 3,600 cases of breast cancer and over 400
cases of invasive cervical cancer have been diagnosed since the
beginning of the program. In Maryland alone, the state had provided
more than 54,000 mammograms and 35,000 Pap tests, and diagnosed over
450 women with breast cancer and 15 women with invasive cervical
cancer.
Now as we prepare to enter the 21st century, it is time for us to
finish what we started and provide treatment services for breast and
cervical cancer for women who are screened through this program. We
made the down payment in 1990 and we've been making payments ever
since, but it's time for the final payment. It is time to do the right
thing. We screen the women in this program for breast and cervical
cancer. But we don't provide the federal follow-up to ensure that these
women are treated.
The CDC screening program does not pay for breast and cervical cancer
treatment services, but it does require participating states to provide
treatment services. A study of the program done for the Centers for
Disease Control and Prevention found that while treatment was
eventually found for almost all of the women screened, some women did
not get treated at all, some refused treatment, and some experienced
delays. While states and localities have been diligent and creative in
finding treatment services for these women, the reality is that the
system is overloaded. The CDC study found that when it came to
treatment services, state efforts to obtain these services were short-
term, labor-intensive solutions that diverted resources away from
screening activities.
Of those women diagnosed with cancer in the United States, nearly
3,000 women have no way to afford treatment--they have no health care
insurance coverage or are underinsured. One woman in Massachusetts
reported that she cashed in her life insurance policy to cover the
costs of her treatment. These women depend on the time of staff and
volunteers who help them find free or more affordable treatment; they
depend on the generosity of doctors, nurses, hospitals and clinics who
provide them with free or reduced-cost treatment. In the end, thousands
of women who run local screening programs are spending countless hours
finding treatment services for women diagnosed with breast cancer. I
salute the efforts of these individuals who spend their time and
resources to help these women.
But we must not force these women to rely on the goodwill of others.
These treatment efforts will become even more difficult as more women
are screened by the NBCCEDP, which currently services only 12-15% of
all women who are eligible nationally. The lack of coverage for
diagnostic and treatment services has also had a very negative impact
on the program's ability to recruit providers, further restricting the
number of women screened. The CDC study also shows there are already
additional stresses on the program as increasing numbers of physicians
do not have the autonomy in today's ever increasing managed care system
to offer free or reduced-fee services. While CDC has expanded its case
management services to help more women get treatment, even CDC admits
that ``more formalized and sustained mechanisms need to be instituted
to ensure that all women screened have ready access to appropriate
treatment and follow-up.'' It is an outrage that women with cancer must
go begging for treatment, especially if the federal government has held
out the promise of early detection. We should follow through on our
responsibility to treat the cancer that these women were diagnosed with
through the CDC program.
That's why I've introduced this important legislation with my
colleagues. This bill gives states the option to provide Medicaid
coverage for the duration of breast and cervical cancer treatment to
eligible women who were screened through the CDC program and found to
have these cancers. This is not a mandate for states; it is the federal
government saying to the states ``we will help you provide treatment
services to these women, if you decide to do so.'' By choosing this
option, states would in effect, extend the federal-state partnership
that exists for the screening services in the CDC program to treatment
services.
I'm proud that my own state of Maryland realized the importance of
providing treatment services to women who were screened through the CDC
screening program. Maryland appropriated over $6 million in state funds
to establish a Breast and Cervical Cancer Diagnostic and Treatment
Program for uninsured, low income women. The breast cancer mortality
rate in Maryland has started to decline, in part because of programs
like the CDC program. But not all states have the resources to do what
Maryland has done. That's why this bill is needed. It provides a long-
term solution. Screening alone does not prevent cancer deaths; but
treatment can. It's a cruel and heart-breaking irony for the federal
government to promise to screen low-income women for breast and
cervical cancer, but not to establish a program to treat those women
who have been diagnosed with cancer through a federal program.
It is clear that the short-term, ad-hoc strategies of providing
treatment have broken down: for the women who are screened; for the
local programs that fund the screening program; and for the states that
face increasing burdens. Because there is not coverage for treatment,
state programs are having a hard time recruiting providers, volunteers
are spending a disproportionate amount of time finding treatment for
women, and fewer women are receiving treatment. We can't grow the
program to serve the other 78% of eligible women if we can't promise
treatment to those we already screen.
This bill is the best long-term solution. It is strongly supported by
the National Breast Cancer Coalition representing over 400
organizations and 100,000's of women across the nation; the American
Cancer Society, the National Association of Public Hospitals and Health
Systems, the National Partnership for Women and Families, YWCA,
National Women's Health Network, Oncology Nursing Society, Association
of Women's Health, Obstetric, and Neonatal Nurses, the Rhode Island
Breast Cancer Coalition, Y-ME, and Arm in Arm. I urge my colleagues to
cosponsor and support this critical piece of legislation and make good
on the promise of early detection.
Mr. MOYNIHAN. Mr. President, today, I join with my colleagues
Senators Chafee, Mikulski, and Snowe in introducing legislation to
ensure that women with breast or cervical cancer will receive coverage
for their treatment. The Federal Centers for Disease Control and
Prevention (CDC) has a successful nationwide program--National Breast
and Cervical Cancer Early Detection program--that provides funding for
states to screen low-income uninsured women for breast and cervical
cancer. However, the CDC program is not designed and does not have
funding to treat these women after they are diagnosed.
The women eligible for cancer screening under the CDC program are
low-income individuals, yet are not poor enough to qualify for Medicaid
coverage. They do not have health insurance coverage for these
screenings and for subsequent cancer treatment.
From July of 1991 to September of 1997, the CDC program provided
mammography screening to 722,000 women and diagnosed 3,600 cases of
breast cancer. During this same period, the program also provided over
852,000 pap smears and found more than 400 cases of invasive cervical
cancer.
The CDC screening program has had to divert a significant amount of
its resources from screenings in order to find treatment for the women
found to have

[[Page S2946]]

breast and cervical cancer. The lack of subsequent funding for
treatment has, therefore, jeopardized the programs' primary function:
to screen low-income uninsured women for breast and cervical cancer.
Currently, the program screens only about 12 to 15 percent of all
eligible women.
A study conducted at Battelle Centers for Public Health Research and
Evaluation and the University of Michigan School of Public Health on
treatment funding for women screened by the CDC program found that,
although funding for treatment services were found for most of these
women, treatment was not always available when needed. In addition,
during the search for treatment funding, the CDC program lost contact
with several women. The study also found that the sources of treatment
funding are uncertain, tenuous and fragmented. The burden of funding
treatment often fell upon providers themselves. Seeking charity care
from public hospitals adds to hospitals' uncompensated care costs. It
is no surprise that the National Association of Public Hospitals
supports our bill to provide coverage for these women.
The legislation would allow states to provide treatment coverage for
low-income women who are screened and diagnosed through the CDC program
and who are uninsured. States will have the option to provide this
coverage through its Medicaid program. States choosing this option
would receive an enhanced match for the treatment coverage, similar to
the federal match provided to the state for the CDC screening program.
With this legislation, the Federal Government will follow through on
its intent to assist low-income women with breast and cervical cancer.
Mr. President, the Senate has approved this proposal in the past. A
similar provision was included in the Senate version of the Balanced
Budget bill. I urge the Senate to again support this important
legislation.
______

By Mr. SPECTER:
S. 663. A bill to impose certain limitations on the receipt of out-
of-State municipal solid waste, to authorize State and local controls
over the flow of municipal solid waste, and for other purposes; to the
Committee on Environment and Public Works.

the solid waste interstate transportation and local authority act of
1999

Mr. SPECTER. Mr. President, I have sought recognition to
introduce a bill that would allow states to pass laws limiting the
import of waste from other states. Addressing the interstate shipment
of solid waste is a top environmental priority for millions of
Americans, millions of Pennsylvanians and for me. As you are aware,
Congress came very close to enacting legislation to address this issue
in 1994, and the Senate passed interstate waste and flow control
legislation in May, 1995 by an overwhelming 94-6 margin, only to see it
die in the House of Representatives. I am confident that with the
strong leadership of my colleagues Chairman Chafee and Senator Smith,
we can get quick action on a strong waste bill and pressure the House
to conclude this effort once and for all.
As you are aware, the Supreme Court has put us in the position of
having to intervene in the issue of trash shipments. In recent years,
the Court has struck down State laws restricting the importation of
solid waste from other jurisdictions under the Interstate Commerce
Clause of the U.S. Constitution. The only solution is for Congress to
enact legislation conferring such authority on the States, which would
then be Constitutional.
It is time that the largest trash exporting States bite the bullet
and take substantial steps towards self-sufficiency for waste disposal.
The legislation passed by the Senate in the 103rd and 104th Congresses
would have provided much-needed relief to Pennsylvania, which is by far
the largest importer of out-of-State waste in the nation. According to
the Pennsylvania Department of Environmental Protection, 3.9 million
tons of out-of-State municipal solid waste entered Pennsylvania in
1993, rising to 4.3 million tons in 1994, 5.2 million in 1995, and a
record 6.3 million tons from out-of-State in 1996 and 1997, which are
the most recent statistics available. Most of this trash came from New
York and New Jersey, with New York responsible for 2.7 million tons and
New Jersey responsible for 2.4 million tons in 1997, representing 82
percent of the municipal solid waste imported into Pennsylvania.
This is not a problem limited to one small corner of my State.
Millions of tons of trash generated in other States find their final
resting place in more than 50 landfills throughout Pennsylvania.
Now, more than ever, we need legislation which will go a long way
toward resolving the landfill problems facing Pennsylvania, Indiana,
and similar waste importing States. I am particularly concerned by the
developments in New York, where Governor Pataki and Mayor Giuliani have
announced the closure of the City's one remaining landfill, Fresh
Kills, in 2001. I am advised that 13,200 tons per day of New York City
trash are sent there and that Pennsylvania is a likely destination once
Fresh Kills begins its shut-down.
On several occasions, I have met with country officials,
environmental groups, and other Pennsylvanians to discuss the solid
waste issue specifically, and it often comes up in the public open
house town meetings I conduct in all of Pennsylvania's 67 counties. I
came away from those meetings impressed by the deep concerns expressed
by the residents of communities which host a landfill rapidly filing up
with the refuse of millions of New Yorkers and New Jerseyans whose
States have failed to adequately manage the waste they generate.
Recognizing the recurrent problem of landfill capacity in
Pennsylvania, since 1989 I have pushed to resolve the interstate waste
crisis. I have introduced legislation with my late colleague, Senator
John Heinz, and then with former Senator Dan Coats along with
cosponsors from both sides of the aisle which would have authorized
States to restrict the disposal of out-of-State municipal waste in any
landfill or incinerator within its jurisdiction. I was pleased
when many of the concepts in our legislation were incorporated in the
Environment and Public Works Committee's reported bills in the 103rd
and 104th Congresses, and I supported these measures during floor
consideration.

During the 103rd Congress, we encountered a new issue with respect to
municipal solid waste--the issue of waste flow control authority. On
May 16, 1994, the Supreme Court held (6-3) in Carbone versus Clarkstown
that a flow control ordinance, which requires all solid waste to be
processed at a designated waste management facility, violates the
Commerce Clause of the United States Constitution. In striking down the
Clarkstown ordinance, the Court stated that the ordinance discriminated
against interstate commerce by allowing only the favored operator to
process waste that is within the town's limits. As a result of the
Court's decision, flow control ordinances in Pennsylvania and other
States are considered unconstitutional.
I have met with county commissioners who have made clear that this
issue is vitally important to the local governments in Pennsylvania and
my office has, over the past years received numerous phone calls and
letters from individual Pennsylvania counties and municipal solid waste
authorities that support waste flow control legislation. Since 1988,
flow control has been the primary tool used by Pennsylvania counties to
enforce solid waste plans and meet waste reduction and recycling goals
or mandates. Many Pennsylvania jurisdictions have spent a considerable
amount of public funds on disposal facilities, including upgraded
sanitary landfills, state-of-the-art resource recovery facilities, and
co-composting facilities. In the absence of flow control authority, I
am advised that many of these worthwhile projects could be jeopardized
and that there has been a fiscal impact on some communities where there
are debt service obligations.
In order to fix these problems, my legislation would provide a
presumptive ban on all out-of-state municipal solid waste, including
construction and demolition debris, unless a landfill obtains the
agreement of the local government to allow for the importation of
waste. It would provide a freeze authority to allow a State to place a
limit on the amount of out-of-state waste received annually at each
facility. It would also provide a ratchet authority to allow a State to
gradually

[[Page S2947]]

reduce the amount of out-of-state municipal waste that may be received
at facilities. These provisions will provide a concrete incentive for
the largest states to get a handle on their solid waste management
immediately. To address the problem of flow control my bill would
provide authority to allow local governments to designate where
privately collected waste must be disposed. This would be a narrow fix
for only those localities that constructed facilities before the 1994
Supreme Court ruling and who relied on their ability to regulate the
flow of garbage to pay for their municipal bonds.
This is an issue that affects numerous states, and I urge my
colleagues to support this very important legislation.
______

By Mr. CHAFEE (for himself, Mr. Graham, Mr. Jeffords, and Mr.
Breaux):
S. 664. A bill to amend the Internal Revenue Code of 1986 to provide
a credit against income tax to individuals who rehabilitate historic
homes or who are the first purchasers of rehabilitated historic homes
for use as a principal residence; to the Committee on Finance.

the historic homeownership assistance act

Mr. CHAFEE. Mr. President, all across America, in the small
towns and great cities of this country, our heritage as a nation--the
physical evidence of our past--is at risk. In virtually every corner of
this land, homes in which grandparents and parents grew up, communities
and neighborhoods that nurtured vibrant families, schools that were
good places to learn and churches and synagogues that were filled on
days of prayer, have suffered the ravages of abandonment and decay.
In the decade from 1980 to 1990, Chicago lost 41,000 housing units
through abandonment, Philadelphia 10,000 and St. Louis 7,000. The story
in our older small communities has been the same, and the trend
continues. It is important to understand that it is not just buildings
that we are losing. It is the sense of our past, the vitality of our
communities and the shared values of those precious places.
We need not stand hopelessly by as passive witnesses to the loss of
these irreplaceable historic resources. We can act, and to that end I
am introducing today the Historic Homeownership Assistance Act along
with my distinguished colleagues, Senator Graham of Florida, Senator
Jeffords, and Senator Breaux.
This legislation is patterned after the existing Historic
Rehabilitation Investment Tax Credit. That legislation has been
enormously successful in stimulating private investment in the
rehabilitation of buildings of historic importance all across the
country. Through its use we have been able to save and re-use a rich
and diverse array of historic buildings: landmarks such as Union
Station right here in Washington, DC, the Fox River Mills, a mixed use
project that was once a derelict paper mill in Appleton, WI, and the
Rosa True School, an eight-unit low and moderate income rental project
in an historic school building in Portland, ME.
In my own state of Rhode Island, federal tax incentives stimulated
the rehabilitation and commercial reuse of more than three hundred
historic properties. The properties saved include the Hotel Manisses on
Block Island, the former Valley Falls Mills complex in Central Falls,
and the Honan Block in Woonsocket.
The legislation that I am introducing builds on the familiar
structure of the existing tax credit, but with a different focus and
a more modest scope and cost. It is designed to empower the one major
constituency that has been barred from using the existing credit--
homeowners. Only those persons who rehabilitate or purchase a newly
rehabilitated home and occupy it as their principal residence would be
entitled to this new credit. There would be no passive losses, no tax
shelters and no syndications under this bill.

Like the existing investment credit, the bill would provide a credit
to homeowners equal to 20 percent of the qualified rehabilitation
expenditures made on an eligible building which is used as a principal
residence by the owner. Eligible buildings are those individually
listed on the National Register of Historic Places or on a nationally
certified state or local historic register, or are contributing
buildings in national, state or local historic districts. As is the
case with the existing credit, the rehabilitation work would have to be
performed in compliance with the Secretary of the Interior's Standards
for Rehabilitation, although the bill clarifies that such Standards
should be interpreted in a manner that takes into consideration
economic and technical feasibility.
The bill also allows lower income homebuyers, who may not have
sufficient federal income tax liability to use a tax credit, to convert
the credit to mortgage assistance. The legislation would permit such
persons to receive an Historic Rehabilitation Mortgage Credit
Certificate which they can use with their work bank to obtain a lower
interest rate on their mortgage or to lower the amount of their
downpayment.
The credit would be available for condominiums and coops, as well as
single-family buildings. If a building is rehabilitated by a developer
for resale, the credit would pass through to the homeowner.
One goal of the bill is to provide incentives for middle- and upper-
income families to return to older towns and cities. Therefore, the
bill does not limit the tax benefits on the basis of income. However,
it does impose a cap of $40,000 on the amount of credit which may be
taken for a principal residence.
The Historic Homeownership Assistance Act will make ownership of a
rehabilitated older home more affordable for homebuyers of modest
incomes. It will encourage more affluent families to claim a stake in
older towns and neighborhoods. It affords fiscally stressed cities and
towns a way to put abandoned buildings back on the tax rolls, while
strengthening their income and sales tax bases. It offers developers,
realtors, and homebuilders a new realm of economic opportunity in
revitalizing decaying buildings.

In addition to preserving our heritage, extending this credit will
provide an important supplemental benefit--it will boost the economy.
Every dollar of federal investment in historic rehabilitation leverages
many more from the private sector. Rhode Island, for example, has used
the credit to leverage $252 million in private investment. This
investment has created more than 10,000 jobs and $187 million in wages.
An increasing concern to many mayors, country executives and
governors is the issue of urban sprawl. Wherein new housing is
constructed on nearby farmland, older housing stock is abandoned. This
legislation encourages the rehabilitation of that housing stock and
will help curb urban sprawl.
The American dream of owning one's own home is a powerful force. This
bill can help it come true for those who are prepared to make a
personal commitment to join in the rescue of our priceless heritage. By
their actions they can help to revitalize decaying resources of
historic importance, create jobs and stimulate economic development,
and restore to our older towns and cities a lost sense of purpose and
community. I ask that a summary of this bill be printed in the Record.
The summary follows:

The Historic Homeownership Assistance Act--Summary

Purpose. To provide homeownership incentives and
opportunities through the rehabilitation of older buildings
in historic districts.
Rate of Credit. 20% credit for expenditures to rehabilitate
or purchase a newly-rehabilitated eligible home and occupy it
as a principal residence.
Eligible Buildings. Eligible buildings would be buildings
individually listed on the National Register of Historic
Places or a nationally certified state or local register, and
contributing buildings in national, state or local historic
districts.
Maximum Credit: Minimum Expenditures. The amount of the
credit would be limited to $40,000 for each principal
residence. The amount of qualified rehabilitation
expenditures would be required to exceed the greater of
$5,000 or the adjusted tax basis of the building (excluding
the land). At least five percent of the qualified
rehabilitation expenditures would have to be spent on the
exterior of the building.
Carry-Forward: Recapture. Any unused amounts of credit
would be carried forward until fully exhausted. In the event
the taxpayer failed to maintain his or her principal
residence in the building for five years, the credit would be
subject to ratable recapture.
Historic Rehabilitation Mortgage Credit Certificates. Lower
income taxpayers, who may not have sufficient Federal Income
Tax liability to make effective use of a homeownership credit
would be able to convert the credit into a mortgage credit
certificate

[[Page S2948]]

which can be used to obtain an interest rate reduction on his
or her home mortgage loan. For homes purchased in distressed
areas, the credit certificate could be used to lower an
individual's downpayment.
In many distressed neighborhoods, the cost of
rehabilitating a home and bringing it to market significantly
exceeds the value at which the property is appraised by the
mortgage lender. This gap imposes a significant burden on a
potential homeowner because the required downpayment exceeds
his or her means. The legislation permits the mortgage credit
certificate to be used to reduce the buyer's down payment,
rather than to reduce the interest rate, in order to close
this gap. This provision is limited to historic districts
which qualify as targeted under the existing Mortgage Revenue
Bond program or are located in enterprise or empowerment
zones.
Mr. GRAHAM. Mr. President, today I join my good friend and
colleague Senator Chafee in support of the Historic Homeownership
Assistance Act. This bill will spur growth and preservation of historic
neighborhoods across the country by providing a limited tax credit for
qualified rehabilitation expenditures to historic homes.
In virtually every corner of this land, homes in which our
grandparents and parents grew up, communities and neighborhoods that
nurtured vibrant families, schools that were good places to learn and
churches and synagogues that were filled on days of prayer, have
suffered the ravages of decay. Every year we lose thousands of historic
housing units that are either demolished or abandoned. We are losing
both physical structures and the historic past that these physical
structures represent.
The Historic Homeownership Assistance Act will stimulate
rehabilitation of historic homes while contributing to the
revitalization of urban communities. The Federal tax credit provided in
the legislation is modeled after the existing Federal commercial
historic rehabilitation tax credit. Since 1981, this commercial tax
credit has facilitated the preservation of many historic structures
such as Union Station in Washington, DC. In my home state of Florida,
the existing Historic Rehabilitation Investment tax credit has resulted
in over 300 rehabilitation projects since 1974. These projects range
from the restoration of art deco hotels in Miami Beach, to the
preservation of Ybor City in Tampa and the Springfield Historic
District in Jacksonville.
The tax credit, however, has never applied to personal residences.
This legislation that Senator Chafee and I are cosponsoring is designed
to empower the one major constituency that has been barred from using
the existing credit--homeowners. It is time we provide this incentive
to homeowners to restore and preserve homes in America's historic
communities.
Like the existing investment credit, this bill would provide a credit
to homeowners equal to 20 percent of a qualified rehabilitation
expenditures made on an eligible building that is used as a principle
residence by the owner. The amount of the credit would be limited to
$40,000 for each principal residence. Eligible buildings would be those
that are listed individually on the National Register of Historic
Places, or a nationally certified state or local register, and
contributing buildings in national, state or local historic districts.
Recognizing that the states can best administer laws affecting unique
communities, the act gives power to the Secretary of the Interior to
work with states to implement a number of provisions.

The bill also targets Americans at all economic levels. It provides
lower income Americans with the option to elect a Mortgage Credit
Certificate in lieu of the tax credit. This certificate allows
Americans who cannot take advantage of the tax credit to reduce the
interest rate on the mortgage that secures the purchase and
rehabilitation of a historic home.
The credit would also be available for condominiums and co-ops, as
well as single-family buildings. If a building were to be rehabilitated
by a developer for sale to a homeowner, the credit would pass through
to the homeowner. Since one purpose of the bill is to provide
incentives for middle-income and more affluent families to return to
older towns and cities, the bill does not discriminate among taxpayers
on the basis of income.
Mr. President, the time has come for Congress to get serious about
urban renewal. For too long, we have sat on the sidelines watching idly
as our citizens slowly abandoned entire homes and neighborhoods in
urban settings, leaving cities like Miami in Florida and others around
the nation in financial jeopardy. This legislation affords fiscally
stressed cities and towns a way to put abandoned buildings back on the
tax rolls, while strengthening their income and sales tax base. It will
encourage more affluent families to claim a stake in older towns and
neighborhoods. It offers developers, realtors, and homebuilders a new
realm of economic opportunity in revitalizing decaying buildings.
The Historic Homeownership Assistance Act does not reinvent the
wheel. In addition to the existing commercial historic rehabilitation
credit, the proposed bill incorporates features from several tax
incentives for the preservation of historic homes. Colorado, Maryland,
New Mexico, Rhode Island, Wisconsin, and Utah have pioneered their own
successful versions of the historic preservation tax incentive for
homeownership.
At the federal level, this legislation would promote historic home
preservation nationwide, allowing future generations of Americans to
visit and reside in homes that tell the unique history of our
communities. The Historic Homeownership Assistance Act will offer
enormous potential for saving historic homes and bringing entire
neighborhoods back to life. I urge all my colleagues to support this
important piece of legislation.
______

By Mr. COVERDELL (for himself, Mr. Hagel, Mrs. Hutchison, Mr.
Kyl, Mr. Inhofe, and Mr. Grassley):
S. 665. A bill to amend the Congressional Budget and Impoundment
Control Act of 1974 to prohibit the consideration of retroactive tax
increases; to the Committee on the Budget and the Committee on
Governmental Affairs, jointly, pursuant to the order of August 4, 1977,
that if one Committee reports, the other Committee has 30 days to
report or be discharged.

coverdell RETROACTIVE TAX BAN PACKAGE

Mr. COVERDELL. Mr. President, today I rise to offer a tax reform
package to provide greater tax fairness and to protect citizens from
retroactive taxation. This package includes three initiatives: a
constitutional amendment called the retroactive tax ban amendment, a
bill to establish a new budget point of order against retroactive
taxation, and a proposed Senate Rule change.
The first, the retroactive tax ban amendment, is a constitutional
amendment to prevent the Federal Government from imposing any tax
increase retroactively. The amendment states simply ``No Federal tax
shall be imposed for the period before the date of enactment.'' We have
heard directly from the taxpayers, and looking backward for extra taxes
is unacceptable. It is not a fair way to deal with taxpayers.
In addition, I am introducing a bill that would create a point of
order under the Budget Act against retroactive tax rate increases.
Because amending the Constitution can be a very long prospect--just
look at the decades-long effort on behalf of a balanced budget
amendment--I believe this legislation is necessary to provide needed
protection for American families from the destabilizing effects of
retroactive taxation.
Finally, I am proposing a Senate Rule change making it out of order
for the Senate to consider retroactive tax rate increases.
Both proposals, the point of order under the Budget Act and the
Senate Rule change, are modeled after the existing House Rules
preventing that body from considering retroactive taxation. In other
words, by virtue of the fact that the House cannot consider legislation
so too has the Senate been de facto unable to consider retroactive tax
rate increases. Now is the time for the Senate to come forward and
incorporate this fact in its proceedings.
It was clear to Thomas Jefferson that the only way to preserve
freedom was to protect its citizens from oppressive taxation. Even the
Russian Constitution does not allow you to tax retroactively.
Retroactive taxation is wrong, and it is morally incorrect.
Families and businesses and communities must know what the rules of
the road are and that those rules will not change. They have to be able
to plan their lives, plan their families, and

[[Page S2949]]

plan their tax burdens in advance. They cannot come to the end of a
year and have a Congress of the United States and a President come
forward and say, ``All your planning was for naught, and we don't
care.''
I encourage my Colleagues to join me in protecting taxpayers from
retroactive tax rate increases.
______

By Mr. LUGAR (for himself, Mr. Gramm, Mr. McCain, Mr. DeWine, Mr.
Hagel, Mr. Grams, Mr. Jeffords, Ms. Landrieu, and Mr.
Lieberman):
S. 666. A bill to authorize a new trade and investment policy for
sub-Saharan Africa; to the Committee on Finance.

african growth and opportunity act (agoa)

Mr. LUGAR. Mr. President, I rise to introduce the African
Growth and Opportunity Act (AGOA). I'm pleased to be joined by Senators
McCain, Gramm, Hagel, DeWine and Grams as original cosponsors. Our bill
is designed to provide a broad U.S. policy framework towards the nearly
fifty countries in sub-Sahara Africa. Specifically, the bill seeks to
develop active partnerships with African countries through a set of
trade and investment initiatives and incentives in exchange for a
commitment from those countries to make the transition to market
economies.
For decades U.S. policy towards Africa was based largely on a series
of bilateral aid relationships. Our involvement in Africa was
influenced by strategic considerations inherent in the cold war. Our
assistance programs targeted humanitarian crises and natural disasters
and they helped nurture a variety of health, nutritional, educational
and agricultural programs. As important as these programs have been,
they have not promoted much economic development, fostered much self-
reliance or promoted political stability for the vast majority of the
people of sub-Sahara Africa. Nor have they particularly benefitted the
American economy. For these reasons, it is long past due that the
United States re-evaluate this policy. That is the purpose of our bill.
Last year, a similar bill was introduced and passed in the House of
Representatives but did not reach the floor of the Senate. The bill has
been introduced last month in the House and the House committees have
been active. Already, the bill is scheduled to be reported by both the
Ways and Means and International Relations Committees very soon. I
understand that it is scheduled for a floor vote in the House in the
next several weeks.
The Administration supports this legislation because it mirrors its
own initiatives on Africa. Indeed, President Clinton cited the
initiative and the bill in his last two State of the Union addresses
before the Congress. Virtually all African Ambassadors have endorsed
this bill and are committed to working to pass and enact it this year.
Our bill enjoys support within the American business community and
among many non-governmental organizations involved in Africa.
Mr. President, the AGOA is intended to promote greater economic self-
reliance in Africa through enhanced private sector activity and trade
incentives for those countries meeting eligibility requirements and
wishing to participate. The bill authorizes the President to grant
duty-free treatment to certain products currently excluded from the GSP
program, subject to the sensitivity analysis of the International Trade
Commission. It extends the GSP program for Africa for 10 years, a
provision which is important for long-term business planning.
The bill also would increase access to U.S. markets for African
textiles and other products. It would remove U.S. quotas on African
textile imports which now amount to less than one percent of our
worldwide textile imports. The bill includes unusually strong
transshipment language that is the toughest ever proposed. The U.S.
International Trade Commission estimated last year that reducing
tariffs on textiles from Africa would have a negligible effect on our
economy but would give a high boost to Africa's fledgling manufacturing
base. The jobs and foreign exchange earnings that would be gained in
Africa under this initiative will enable Africans to purchase more
products from the United States.
In my judgement, the AGOA is a modest bill which, if adopted, could
have immodest results in Africa. It takes a long-term view and provides
a policy road map for achieving economic growth and opportunity. It
will take some time for the initiatives embedded in this legislation to
have a measurable impact on economic growth in Africa. Nonetheless, we
need to look ahead over the next decades and to assist wherever
possible in the development of those areas that have not been
successfully or fully integrated into the world economy. Much of Africa
falls into this category. My bill is intended to help facilitate that
transition. Strategic planning now will help create a better, more
productive and prosperous future.

Mr. President, our bill includes a number of other attractive
provisions. It includes two new private sector financed funds--an
equity fund and an infrastructure fund both of which would be backed by
the Overseas Private Investment Corporation (OPIC). If successful,
these funds will lead to improvements in such areas as African roads,
telecommunications and power plants each of which can accelerate
economic activity in Africa. It includes provisions for enhanced
visibility for Africa in our international deliberations on trade and
finance and increased technical assistance for economic management. It
establishes a Forum to facilitate high level discussions on trade and
investment policies between the U.S. and Africa.
Most importantly, our bill signals the start of a new era in U.S.-
African relations based less on bilateral aid ties and more business
relationships, less on paternalism and more on partnerships, and one
that builds upon the long term prospects of African societies rather
than on short-term, reactive policies.
Many African societies have been undergoing impressive political and
economic transformations. Africa's economic potential is substantial.
There are more than 600 million people in sub-Sahara Africa, but
Africa's share of foreign annual direct investment commands less than
two percent of global direct investment flows. Much of that capital
comes from Europe which has an established market and investment
presence in Africa. Nonetheless, several African countries enjoy
sustained economic growth at or above 6%, despite the strains in the
global economy that began in Southeast Asia and spread to other parts
of the world. Indeed, U.S. Trade with sub-Sahara Africa exceeds our
trade with all the states of the former Soviet Union combined and the
potential for expansion will grow as these economies expand and mature.
The enhanced trade and private investment benefits in the bill will
be available to all African societies but especially to those countries
which undertake sustained economic reform, maintain acceptable human
rights practices and make progress towards good governance. These
standards are similar to those applied in other parts of the world.
Indeed, without these standards the private sector would be unlikely to
invest in Africa.
The United States can play a significant role in helping promote
Africa development. We have a historic opportunity to help integrate
African countries into the global economy, to re-think dependency on
foreign assistance and to help strengthen civil society and economic
and political institutions. No one believes this bill is a panacea for
Africa, but it is very much in our interests to play a constructive
role in the evolving economic transition in Africa. If the United
States has the vision to be a major player in Africa's economic and
political improvement, we will also be a major beneficiary. If we are
successful, Africa will provide new trade and investment opportunities
for the United States. It will also improve the quality of life for a
broader segment of the people of Africa, a goal we must all support and
applaud.
Mr. President, I ask that the proposed African Growth and Opportunity
Act (AGOA) section-by-section description be printed in the Record.
The material follows:

S. 666

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 ``African
Growth and Opportunity Act''.
(b) Table of Contents.--

Sec. 1. Short title; table of contents.

[[Page S2950]]

Sec. 2. Findings.
Sec. 3. Statement of policy.
Sec. 4. Eligibility requirements.
Sec. 5. Sub-Saharan Africa defined.

TITLE I--TRADE POLICY FOR SUB-SAHARAN AFRICA

Sec. 101. United States-Sub-Saharan Africa Trade and Economic
Cooperation Forum.
Sec. 102. United States-Sub-Saharan Africa Free Trade Area.
Sec. 103. Eliminating trade barriers and encouraging exports.
Sec. 104. Generalized system of preferences.
Sec. 105. Assistant United States trade representative for Sub-Saharan
Africa.
Sec. 106. Reporting requirement.

TITLE II--INTERNATIONAL FINANCIAL AND FOREIGN RELATIONS POLICY FOR SUB-
SAHARAN AFRICA

Sec. 201. International financial institutions and debt reduction.
Sec. 202. Executive branch initiatives.
Sec. 203. Sub-Saharan Africa Infrastructure Fund.
Sec. 204. Overseas Private Investment Corporation and Export-Import
Bank initiatives.
Sec. 205. Expansion of the United States and foreign commercial service
in Sub-Saharan Africa.
Sec. 206. Donation of air traffic control equipment to eligible Sub-
Saharan African countries.

SEC. 2. FINDINGS.

The Congress finds that it is in the mutual economic
interest of the United States and sub-Saharan Africa to
promote stable and sustainable economic growth and
development in sub-Saharan Africa and that sustained economic
growth in sub-Saharan Africa depends in large measure upon
the development of a receptive environment for trade and
investment. To that end, the United States seeks to
facilitate market-led economic growth in, and thereby the
social and economic development of, the countries of sub-
Saharan Africa. In particular, the United States seeks to
assist sub-Saharan African countries, and the private sector
in those countries, to achieve economic self-reliance by--
(1) strengthening and expanding the private sector in sub-
Saharan Africa, especially women-owned businesses;
(2) encouraging increased trade and investment between the
United States and sub-Saharan Africa;
(3) reducing tariff and nontariff barriers and other trade
obstacles;
(4) expanding United States assistance to sub-Saharan
Africa's regional integration efforts;
(5) negotiating free trade areas;
(6) establishing a United States-Sub-Saharan Africa Trade
and Investment Partnership;
(7) focusing on countries committed to accountable
government, economic reform, and the eradication of poverty;
(8) establishing a United States-Sub-Saharan Africa
Economic Cooperation Forum; and
(9) continuing to support development assistance for those
countries in sub-Saharan Africa attempting to build civil
societies.

SEC. 3. STATEMENT OF POLICY.

The Congress supports economic self-reliance for sub-
Saharan African countries, particularly those committed to--
(1) economic and political reform;
(2) market incentives and private sector growth;
(3) the eradication of poverty; and
(4) the importance of women to economic growth and
development.

SEC. 4. ELIGIBILITY REQUIREMENTS.

(a) In General.--A sub-Saharan African country shall be
eligible to participate in programs, projects, or activities,
or receive assistance or other benefits under this Act if the
President determines that the country does not engage in
gross violations of internationally recognized human rights
and has established, or is making continual progress toward
establishing, a market-based economy, such as the
establishment and enforcement of appropriate policies
relating to--
(1) promoting free movement of goods and services between
the United States and sub-Saharan Africa and among countries
in sub-Saharan Africa;
(2) promoting the expansion of the production base and the
transformation of commodities and nontraditional products for
exports through joint venture projects between African and
foreign investors;
(3) trade issues, such as protection of intellectual
property rights, improvements in standards, testing, labeling
and certification, and government procurement;
(4) the protection of property rights, such as protection
against expropriation and a functioning and fair judicial
system;
(5) appropriate fiscal systems, such as reducing high
import and corporate taxes, controlling government
consumption, participation in bilateral investment treaties,
and the harmonization of such treaties to avoid double
taxation;
(6) foreign investment issues, such as the provision of
national treatment for foreign investors, removing
restrictions on investment, and other measures to create an
environment conducive to domestic and foreign investment;
(7) supporting the growth of regional markets within a free
trade area framework;
(8) governance issues, such as eliminating government
corruption, minimizing government intervention in the market
such as price controls and subsidies, and streamlining the
business license process;
(9) supporting the growth of the private sector, in
particular by promoting the emergence of a new generation of
African entrepreneurs;
(10) encouraging the private ownership of government-
controlled economic enterprises through divestiture programs;
and
(11) observing the rule of law, including equal protection
under the law and the right to due process and a fair trial.
(b) Additional Factors.--In determining whether a sub-
Saharan African country is eligible under subsection (a), the
President shall take into account the following factors:
(1) An expression by such country of its desire to be an
eligible country under subsection (a).
(2) The extent to which such country has made substantial
progress toward--
(A) reducing tariff levels;
(B) binding its tariffs in the World Trade Organization and
assuming meaningful binding obligations in other sectors of
trade; and
(C) eliminating nontariff barriers to trade.
(3) Whether such country, if not already a member of the
World Trade Organization, is actively pursuing membership in
that Organization.
(4) Where applicable, the extent to which such country is
in material compliance with its obligations to the
International Monetary Fund and other international financial
institutions.
(5) The extent to which such country has a recognizable
commitment to reducing poverty, increasing the availability
of health care and educational opportunities, the expansion
of physical infrastructure in a manner designed to maximize
accessibility, increased access to market and credit
facilities for small farmers and producers, and improved
economic opportunities for women as entrepreneurs and
employees, and promoting and enabling the formation of
capital to support the establishment and operation of micro-
enterprises.
(6) Whether or not such country engages in activities that
undermine United States national security or foreign policy
interests.
(c) Continuing Compliance.--
(1) Monitoring and review of certain countries.--The
President shall monitor and review the progress of sub-
Saharan African countries in order to determine their current
or potential eligibility under subsection (a). Such
determinations shall be based on quantitative factors to the
fullest extent possible and shall be included in the annual
report required by section 106.
(2) Ineligibility of certain countries.--A sub-Saharan
African country described in paragraph (1) that has not made
continual progress in meeting the requirements with which it
is not in compliance shall be ineligible to participate in
programs, projects, or activities, or receive assistance or
other benefits, under this Act.

SEC. 5. SUB-SAHARAN AFRICA DEFINED.

For purposes of this Act, the terms ``sub-Saharan Africa'',
``sub-Saharan African country'', ``country in sub-Saharan
Africa'', and ``countries in sub-Saharan Africa'' refer to
the following or any successor political entities:
Republic of Angola (Angola)
Republic of Botswana (Botswana)
Republic of Burundi (Burundi)
Republic of Cape Verde (Cape Verde)
Republic of Chad (Chad)
Democratic Republic of Congo
Republic of the Congo (Congo)
Republic of Djibouti (Djibouti)
State of Eritrea (Eritrea)
Gabonese Republic (Gabon)
Republic of Ghana (Ghana)
Republic of Guinea-Bissau (Guinea-Bissau)
Kingdom of Lesotho (Lesotho)
Republic of Madagascar (Madagascar)
Republic of Mali (Mali)
Republic of Mauritius (Mauritius)
Republic of Namibia (Namibia)
Federal Republic of Nigeria (Nigeria)
Democratic Republic of Sao Tome and Principe (Sao Tome and
Principe)
Republic of Sierra Leone (Sierra Leone)
Somalia
Kingdom of Swaziland (Swaziland)
Republic of Togo (Togo)
Republic of Zimbabwe (Zimbabwe)
Republic of Benin (Benin)
Burkina Faso (Burkina)
Republic of Cameroon (Cameroon)
Central African Republic
Federal Islamic Republic of the Comoros (Comoros)
Republic of Cote d'Ivoire (Cote d'Ivoire)
Republic of Equatorial Guinea (Equatorial Guinea)
Ethiopia
Republic of the Gambia (Gambia)
Republic of Guinea (Guinea)
Republic of Kenya (Kenya)
Republic of Liberia (Liberia)
Republic of Malawi (Malawi)
Islamic Republic of Mauritania (Mauritania)
Republic of Mozambique (Mozambique)
Republic of Niger (Niger)
Republic of Rwanda (Rwanda)
Republic of Senegal (Senegal)
Republic of Seychelles (Seychelles)
Republic of South Africa (South Africa)
Republic of Sudan (Sudan)
United Republic of Tanzania (Tanzania)
Republic of Uganda (Uganda)
Republic of Zambia (Zambia)

[[Page S2951]]

TITLE I--TRADE POLICY FOR SUB-SAHARAN AFRICA

SEC. 101. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC
COOPERATION FORUM.

(a) Declaration of Policy.--The President shall convene
annual high-level meetings between appropriate officials of
the United States Government and officials of the governments
of sub-Saharan African countries in order to foster close
economic ties between the United States and sub-Saharan
Africa.
(b) Establishment.--Not later than 12 months after the date
of the enactment of this Act, the President, after consulting
with Congress and the governments concerned, shall establish
a United States-Sub-Saharan Africa Trade and Economic
Cooperation Forum (in this section referred to as the
``Forum'').
(c) Requirements.--In creating the Forum, the President
shall meet the following requirements:
(1) The President shall direct the Secretary of Commerce,
the Secretary of the Treasury, the Secretary of State, and
the United States Trade Representative to host the first
annual meeting with the counterparts of such Secretaries from
the governments of sub-Saharan African countries eligible
under section 4, the Secretary General of the Organization of
African Unity, and government officials from other
appropriate countries in Africa, to discuss expanding trade
and investment relations between the United States and sub-
Saharan Africa and the implementation of this Act including
encouraging joint ventures between small and large
businesses.
(2)(A) The President, in consultation with the Congress,
shall encourage United States nongovernmental organizations
to host annual meetings with nongovernmental organizations
from sub-Saharan Africa in conjunction with the annual
meetings of the Forum for the purpose of discussing the
issues described in paragraph (1).
(B) The President, in consultation with the Congress, shall
encourage United States representatives of the private sector
to host annual meetings with representatives of the private
sector from sub-Saharan Africa in conjunction with the annual
meetings of the Forum for the purpose of discussing the
issues described in paragraph (1).
(3) The President shall, to the extent practicable, meet
with the heads of governments of sub-Saharan African
countries eligible under section 4 not less than once every
two years for the purpose of discussing the issues described
in paragraph (1). The first such meeting should take place
not later than twelve months after the date of the enactment
of this Act.
(d) Dissemination of Information by USIA.--In order to
assist in carrying out the purposes of the Forum, the United
States Information Agency shall disseminate regularly,
through multiple media, economic information in support of
the free market economic reforms described in this Act.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.
(f) Limitation on Use of Funds.--None of the funds
authorized under this section may be used to create or
support any nongovernmental organization for the purpose of
expanding or facilitating trade between the United States and
sub-Saharan Africa.

SEC. 102. UNITED STATES-SUB-SAHARAN AFRICA FREE TRADE AREA.

(a) Declaration of Policy.--The Congress declares that a
United States-Sub-Saharan Africa Free Trade Area should be
established, or free trade agreements should be entered into,
in order to serve as the catalyst for increasing trade
between the United States and sub-Saharan Africa and
increasing private sector development in sub-Saharan Africa.
(b) Plan Requirement.--
(1) In general.--The President, taking into account the
provisions of the treaty establishing the African Economic
Community and the willingness of the governments of sub-
Saharan African countries to engage in negotiations to enter
into free trade agreements, shall develop a plan for the
purpose of entering into one or more trade agreements with
sub-Saharan African countries eligible under section 4 in
order to establish a United States-Sub-Saharan Africa Free
Trade Area (in this section referred to as the ``Free Trade
Area'').
(2) Elements of plan.--The plan shall include the
following:
(A) The specific objectives of the United States with
respect to the establishment of the Free Trade Area and a
suggested timetable for achieving those objectives.
(B) The benefits to both the United States and sub-Saharan
Africa with respect to the Free Trade Area.
(C) A mutually agreed-upon timetable for establishing the
Free Trade Area.
(D) The implications for and the role of regional and sub-
regional organizations in sub-Saharan Africa with respect to
the Free Trade Area.
(E) Subject matter anticipated to be covered by the
agreement for establishing the Free Trade Area and United
States laws, programs, and policies, as well as the laws of
participating eligible African countries and existing
bilateral and multilateral and economic cooperation and trade
agreements, that may be affected by the agreement or
agreements.
(F) Procedures to ensure the following:
(i) Adequate consultation with the Congress and the private
sector during the negotiation of the agreement or agreements
for establishing the Free Trade Area.
(ii) Consultation with the Congress regarding all matters
relating to implementation of the agreement or agreements.
(iii) Approval by the Congress of the agreement or
agreements.
(iv) Adequate consultations with the relevant African
governments and African regional and subregional
intergovernmental organizations during the negotiations of
the agreement or agreements.
(c) Reporting Requirement.--Not later than 12 months after
the date of the enactment of this Act, the President shall
prepare and transmit to the Congress a report containing the
plan developed pursuant to subsection (b).

SEC. 103. ELIMINATING TRADE BARRIERS AND ENCOURAGING EXPORTS.

(a) Findings.--The Congress makes the following findings:
(1) The lack of competitiveness of sub-Saharan Africa in
the global market, especially in the manufacturing sector,
make it a limited threat to market disruption and no threat
to United States jobs.
(2) Annual textile and apparel exports to the United States
from sub-Saharan Africa represent less than 1 percent of all
textile and apparel exports to the United States, which
totaled $54,001,863,000 in 1997.
(3) Sub-Saharan Africa has limited textile manufacturing
capacity. During 1999 and the succeeding 4 years, this
limited capacity to manufacture textiles and apparel is
projected to grow at a modest rate. Given this limited
capacity to export textiles and apparel, it will be very
difficult for these exports from sub-Saharan Africa, during
1999 and the succeeding 9 years, to exceed 3 percent annually
of total imports of textile and apparel to the United States.
If these exports from sub-Saharan Africa remain around 3
percent of total imports, they will not represent a threat to
United States workers, consumers, or manufacturers.
(b) Sense of the Congress.--It is the sense of the Congress
that--
(1) it would be to the mutual benefit of the countries in
sub-Saharan Africa and the United States to ensure that the
commitments of the World Trade Organization and associated
agreements are faithfully implemented in each of the member
countries, so as to lay the groundwork for sustained growth
in textile and apparel exports and trade under agreed rules
and disciplines;
(2) reform of trade policies in sub-Saharan Africa with the
objective of removing structural impediments to trade,
consistent with obligations under the World Trade
Organization, can assist the countries of the region in
achieving greater and greater diversification of textile and
apparel export commodities and products and export markets;
and
(3) the President should support textile and apparel trade
reform in sub-Saharan Africa by, among other measures,
providing technical assistance, sharing of information to
expand basic knowledge of how to trade with the United
States, and encouraging business-to-business contacts with
the region.
(c) Treatment of Quotas.--
(1) Kenya and mauritius.--Pursuant to the Agreement on
Textiles and Clothing, the United States shall eliminate the
existing quotas on textile and apparel exports to the United
States--
(A) from Kenya within 30 days after that country adopts an
efficient visa system to guard against unlawful transshipment
of textile and apparel goods and the use of counterfeit
documents; and
(B) from Mauritius within 30 days after that country adopts
such a visa system.

The Customs Service shall provide the necessary technical
assistance to Kenya and Mauritius in the development and
implementation of those visa systems.
(2) Other sub-saharan countries.--The President shall
continue the existing no quota policy for countries in sub-
Saharan Africa. The President shall submit to the Congress,
not later than March 31 of each year, a report on the growth
in textiles and apparel exports to the United States from
countries in sub-Saharan Africa in order to protect United
States consumers, workers, and textile manufacturers from
economic injury on account of the no quota policy.
(d) Customs Procedures and Enforcement.--
(1) Actions by countries against transshipment and
circumvention.--The President should ensure that any country
in sub-Saharan Africa that intends to export textile and
apparel goods to the United States--
(A) has in place a functioning and effective visa system
and domestic laws and enforcement procedures to guard against
unlawful transshipment of textile and apparel goods and the
use of counterfeit documents; and
(B) will cooperate fully with the United States to address
and take action necessary to prevent circumvention, as
provided in Article 5 of the Agreement on Textiles and
Clothing.
(2) Penalties against exporters.--If the President
determines, based on sufficient evidence, that an exporter
has willfully falsified information regarding the country of
origin, manufacture, processing, or assembly of a textile or
apparel article for which duty-free treatment under section
503(a)(1)(C) of the Trade Act of 1974 is claimed, then the
President shall deny to such exporter, and any successors of
such exporter, for a period

[[Page S2952]]

of 2 years, duty-free treatment under such section for
textile and apparel articles.
(3) Applicability of united states laws and procedures.--
All provisions of the laws, regulations, and procedures of
the United States relating to the denial of entry of articles
or penalties against individuals or entities for engaging in
illegal transshipment, fraud, or other violations of the
customs laws shall apply to imports from Sub-Saharan
countries.
(4) Monitoring and reports to congress.--The Customs
Service shall monitor and the Commissioner of Customs shall
submit to the Congress, not later than March 31 of each year,
a report on the effectiveness of the visa systems described
in subsection (c)(1) and paragraph (1) of this subsection and
on measures taken by countries in Sub-Saharan Africa which
export textiles or apparel to the United States to prevent
circumvention as described in Article 5 of the Agreement on
Textiles and Clothing.
(e) Definition.--For purposes of this section, the term
``Agreement on Textiles and Clothing'' means the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).

SEC. 104. GENERALIZED SYSTEM OF PREFERENCES.

(a) Preferential Tariff Treatment for Certain Articles.--
Section 503(a)(1) of the Trade Act of 1974 (19 U.S.C.
2463(a)(1)) is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by inserting after subparagraph (B) the following:
``(C) Eligible countries in sub-saharan africa.--The
President may provide duty-free treatment for any article set
forth in paragraph (1) of subsection (b) that is the growth,
product, or manufacture of an eligible country in sub-Saharan
Africa that is a beneficiary developing country, if, after
receiving the advice of the International Trade Commission in
accordance with subsection (e), the President determines that
such article is not import-sensitive in the context of
imports from eligible countries in sub-Saharan Africa. This
subparagraph shall not affect the designation of eligible
articles under subparagraph (B).''.
(b) Rules of Origin.--Section 503(a)(2) of the Trade Act of
1974 (19 U.S.C. 2463(a)(2)) is amended by adding at the end
the following:
``(C) Eligible countries in sub-saharan africa.--For
purposes of determining the percentage referred to in
subparagraph (A) in the case of an article of an eligible
country in sub-Saharan Africa that is a beneficiary
developing country--
``(i) if the cost or value of materials produced in the
customs territory of the United States is included with
respect to that article, an amount not to exceed 15 percent
of the appraised value of the article at the time it is
entered that is attributed to such United States cost or
value may be applied toward determining the percentage
referred to in subparagraph (A); and
``(ii) the cost or value of the materials included with
respect to that article that are produced in any beneficiary
developing country that is an eligible country in sub-
Saharan Africa shall be applied in determining such
percentage.''.
(c) Waiver of Competitive Need Limitation.--Section
503(c)(2)(D) of the Trade Act of 1974 (19 U.S.C.
2463(c)(2)(D)) is amended to read as follows:
``(D) Least-developed beneficiary developing countries and
eligible countries in sub-saharan africa.--Subparagraph (A)
shall not apply to any least-developed beneficiary developing
country or any eligible country in sub-Saharan Africa.''.
(d) Extension of Program.--Section 505 of the Trade Act of
1974 (19 U.S.C. 2465) is amended to read as follows:

``SEC. 505. DATE OF TERMINATION.

``(a) Countries in Sub-Saharan Africa.--No duty-free
treatment provided under this title shall remain in effect
after June 30, 2009, with respect to beneficiary developing
countries that are eligible countries in sub-Saharan Africa.
``(b) Other Countries.--No duty-free treatment provided
under this title shall remain in effect after June 30, 1999,
with respect to beneficiary developing countries other than
those provided for in subsection (a).''.
(e) Definition.--Section 507 of the Trade Act of 1974 (19
U.S.C. 2467) is amended by adding at the end the following:
``(6) Eligible country in sub-saharan africa.--The terms
`eligible country in sub-Saharan Africa' and `eligible
countries in sub-Saharan Africa' mean a country or countries
that the President has determined to be eligible under
section 4 of the African Growth and Opportunity Act.''.
(f) Effective Date.--The amendments made by this section
take effect on July 1, 1999.

SEC. 105. ASSISTANT UNITED STATES TRADE REPRESENTATIVE FOR
SUB-SAHARAN AFRICA.

(a) Sense of Congress.--It is the sense of the Congress
that the position of Assistant United States Trade
Representative for African Affairs is integral to the United
States commitment to increasing United States--sub-Saharan
African trade and investment.
(b) Maintenance of Position.--The President shall maintain
a position of Assistant United States Trade Representative
for African Affairs within the Office of the United States
Trade Representative to direct and coordinate interagency
activities on United States-Africa trade policy and
investment matters and serve as--
(1) a primary point of contact in the executive branch for
those persons engaged in trade between the United States and
sub-Saharan Africa; and
(2) the chief advisor to the United States Trade
Representative on issues of trade with Africa.
(c) Funding and Staff.--The President shall ensure that the
Assistant United States Trade Representative for African
Affairs has adequate funding and staff to carry out the
duties described in subsection (b), subject to the
availability of appropriations.

SEC. 106. REPORTING REQUIREMENT.

The President shall submit to the Congress, not later than
1 year after the date of the enactment of this Act, and not
later than the end of each of the next 6 1-year periods
thereafter, a comprehensive report on the trade and
investment policy of the United States for sub-Saharan
Africa, and on the implementation of this Act. The last
report required by section 134(b) of the Uruguay Round
Agreements Act (19 U.S.C. 3554(b)) shall be consolidated and
submitted with the first report required by this section.
TITLE II--INTERNATIONAL FINANCIAL AND FOREIGN RELATIONS POLICY FOR SUB-
SAHARAN AFRICA

SEC. 201. INTERNATIONAL FINANCIAL INSTITUTIONS AND DEBT
REDUCTION.

(a) Better Mechanisms To Further Goals for Sub-Saharan
Africa.--It is the sense of the Congress that the Secretary
of the Treasury should instruct the United States Executive
Directors of the International Bank for Reconstruction and
Development, the International Monetary Fund, and the African
Development Bank to use the voice and votes of the Executive
Directors to encourage vigorously their respective
institutions to develop enhanced mechanisms which further the
following goals in eligible countries in sub-Saharan Africa:
(1) Strengthening and expanding the private sector,
especially among women-owned businesses.
(2) Reducing tariffs, nontariff barriers, and other trade
obstacles, and increasing economic integration.
(3) Supporting countries committed to accountable
government, economic reform, the eradication of poverty, and
the building of civil societies.
(4) Supporting deep debt reduction at the earliest possible
date with the greatest amount of relief for eligible poorest
countries under the ``Heavily Indebted Poor Countries''
(HIPC) debt initiative.
(b) Sense of Congress.--It is the sense of the Congress
that relief provided to countries in sub-Saharan Africa which
qualify for the Heavily Indebted Poor Countries debt
initiative should primarily be made through grants rather
than through extended-term debt, and that interim relief or
interim financing should be provided for eligible countries
that establish a strong record of macroeconomic reform.

SEC. 202. EXECUTIVE BRANCH INITIATIVES.

(a) Statement of Congress.--The Congress recognizes that
the stated policy of the executive branch in 1997, the
``Partnership for Growth and Opportunity in Africa''
initiative, is a step toward the establishment of a
comprehensive trade and development policy for sub-Saharan
Africa. It is the sense of the Congress that this Partnership
is a companion to the policy goals set forth in this Act.
(b) Technical Assistance To Promote Economic Reforms and
Development.--In addition to continuing bilateral and
multilateral economic and development assistance, the
President shall target technical assistance toward--
(1) developing relationships between United States firms
and firms in sub-Saharan Africa through a variety of business
associations and networks;
(2) providing assistance to the governments of sub-Saharan
African countries to--
(A) liberalize trade and promote exports;
(B) bring their legal regimes into compliance with the
standards of the World Trade Organization in conjunction with
membership in that Organization;
(C) make financial and fiscal reforms; and
(D) promote greater agribusiness linkages;
(3) addressing such critical agricultural policy issues as
market liberalization, agricultural export development, and
agribusiness investment in processing and transporting
agricultural commodities;
(4) increasing the number of reverse trade missions to
growth-oriented countries in sub-Saharan Africa;
(5) increasing trade in services; and
(6) encouraging greater sub-Saharan participation in future
negotiations in the World Trade Organization on services and
making further commitments in their schedules to the General
Agreement on Trade in Services in order to encourage the
removal of tariff and nontariff barriers.

SEC. 203. SUB-SAHARAN AFRICA INFRASTRUCTURE FUND.

(a) Initiation of Funds.--It is the sense of the Congress
that the Overseas Private Investment Corporation should
exercise the authorities it has to initiate an equity fund or
equity funds in support of projects in the countries in sub-
Saharan Africa, in addition to the existing equity fund for
sub-Saharan Africa created by the Corporation.
(b) Structure and Types of Funds.--

[[Page S2953]]

(1) Structure.--Each fund initiated under subsection (a)
should be structured as a partnership managed by professional
private sector fund managers and monitored on a continuing
basis by the Corporation.
(2) Capitalization.--Each fund should be capitalized with a
combination of private equity capital, which is not
guaranteed by the Corporation, and debt for which the
Corporation provides guaranties.
(3) Infrastructure fund.--One or more of the funds, with
combined assets of up to $500,000,000, should be used in
support of infrastructure projects in countries of sub-
Saharan Africa.
(4) Emphasis.--The Corporation shall ensure that the funds
are used to provide support in particular to women
entrepreneurs and to innovative investments that expand
opportunities for women and maximize employment opportunities
for poor individuals.

SEC. 204. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-
IMPORT BANK INITIATIVES.

(a) Overseas Private Investment Corporation.--
(1) Advisory committee.--Section 233 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2193) is amended by adding
at the end the following:
``(e) Advisory Committee.--The Board shall take prompt
measures to increase the loan, guarantee, and insurance
programs, and financial commitments, of the Corporation in
sub-Saharan Africa, including through the use of an advisory
committee to assist the Board in developing and implementing
policies, programs, and financial instruments with respect to
sub-Saharan Africa. In addition, the advisory committee shall
make recommendations to the Board on how the Corporation can
facilitate greater support by the United States for trade and
investment with and in sub-Saharan Africa. The advisory
committee shall terminate 4 years after the date of the
enactment of this subsection.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the
Overseas Private Investment Corporation shall submit to the
Congress a report on the steps that the Board has taken to
implement section 233(e) of the Foreign Assistance Act of
1961 (as added by paragraph (1)) and any recommendations of
the advisory board established pursuant to such section.
(b) Export-Import Bank.--
(1) Advisory committee for sub-saharan africa.--Section
2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b))
is amended by inserting after paragraph (12) the following:
``(13)(A) The Board of Directors of the Bank shall take
prompt measures, consistent with the credit standards
otherwise required by law, to promote the expansion of the
Bank's financial commitments in sub-Saharan Africa under the
loan, guarantee, and insurance programs of the Bank.
``(B)(i) The Board of Directors shall establish and use an
advisory committee to advise the Board of Directors on the
development and implementation of policies and programs
designed to support the expansion described in subparagraph
(A).
``(ii) The advisory committee shall make recommendations to
the Board of Directors on how the Bank can facilitate greater
support by United States commercial banks for trade with sub-
Saharan Africa.
``(iii) The advisory committee shall terminate 4 years
after the date of the enactment of this subparagraph.''.
(2) Reports to the congress.--Within 6 months after the
date of the enactment of this Act, and annually for each of
the 4 years thereafter, the Board of Directors of the Export-
Import Bank of the United States shall submit to the Congress
a report on the steps that the Board has taken to
implement section 2(b)(13)(B) of the Export-Import Bank
Act of 1945 (as added by paragraph (1)) and any
recommendations of the advisory committee established
pursuant to such section.

SEC. 205. EXPANSION OF THE UNITED STATES AND FOREIGN
COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.

(a) Findings.--The Congress makes the following findings:
(1) The United States and Foreign Commercial Service
(hereafter in this section referred to as the ``Commercial
Service'') plays an important role in helping United States
businesses identify export opportunities and develop reliable
sources of information on commercial prospects in foreign
countries.
(2) During the 1980s, the presence of the Commercial
Service in sub-Saharan Africa consisted of 14 professionals
providing services in eight countries. By early 1997, that
presence had been reduced by half to seven, in only four
countries.
(3) Since 1997, the Department of Commerce has slowly begun
to increase the presence of the Commercial Service in sub-
Saharan Africa, adding five full-time officers to established
posts.
(4) Although the Commercial Service Officers in these
countries have regional responsibilities, this kind of
coverage does not adequately service the needs of United
States businesses attempting to do business in sub-Saharan
Africa.
(5) The Congress has, on several occasions, encouraged the
Commercial Service to focus its resources and efforts in
countries or regions in Europe or Asia to promote greater
United States export activity in those markets.
(6) Because market information is not widely available in
many sub-Saharan African countries, the presence of
additional Commercial Service Officers and resources can play
a significant role in assisting United States businesses in
markets in those countries.
(b) Appointments.--Subject to the availability of
appropriations, by not later than December 31, 2000, the
Secretary of Commerce, acting through the Assistant Secretary
of Commerce and Director General of the United States and
Foreign Commercial Service, shall take steps to ensure that--
(1) at least 20 full-time Commercial Service employees are
stationed in sub-Saharan Africa; and
(2) full-time Commercial Service employees are stationed in
not less than ten different sub-Saharan African countries.
(c) Commercial Service Initiative for Sub-Saharan Africa.--
In order to encourage the export of United States goods and
services to sub-Saharan African countries, the Commercial
Service shall make a special effort to--
(1) identify United States goods and services which are not
being exported to sub-Saharan African countries but which are
being exported to those countries by competitor nations;
(2) identify, where appropriate, trade barriers and
noncompetitive actions, including violations of intellectual
property rights, that are preventing or hindering sales of
United States goods and services to, or the operation of
United States companies in, sub-Saharan Africa;
(3) present, periodically, a list of the goods and services
identified under paragraph (1), and any trade barriers or
noncompetitive actions identified under paragraph (2), to
appropriate authorities in sub-Saharan African countries with
a view to securing increased market access for United States
exporters of goods and services;
(4) facilitate the entrance by United States businesses
into the markets identified under paragraphs (1) and (2); and
(5) monitor and evaluate the results of efforts to increase
the sales of goods and services in such markets.
(d) Reports to Congress.--Not later than one year after the
date of the enactment of this Act, and each year thereafter
for five years, the Secretary of Commerce, in consultation
with the Secretary of State, shall report to the Congress on
actions taken to carry out subsections (b) and (c). Each
report shall specify--
(1) in what countries full-time Commercial Service Officers
are stationed, and the number of such officers placed in each
such country;
(2) the effectiveness of the presence of the additional
Commercial Service Officers in increasing United States
exports to sub-Saharan African countries; and
(3) the specific actions taken by Commercial Service
Officers, both in sub-Saharan African countries and in the
United States, to carry out subsection (c), including
identifying a list of targeted export sectors and countries.

SEC. 206. DONATION OF AIR TRAFFIC CONTROL EQUIPMENT TO
ELIGIBLE SUB-SAHARAN AFRICAN COUNTRIES.

It is the sense of the Congress that, to the extent
appropriate, the United States Government should make every
effort to donate to governments of sub-Saharan African
countries (determined to be eligible under section 4 of this
Act) air traffic control equipment that is no longer in use,
including appropriate related reimbursable technical
assistance.
____

African Growth and Opportunity Act (AGOA)--Section-by-Section Summary

Policy. The AGOA establishes as U.S. policy the creation of
a transition path from development assistance to economic
self-reliance for those sub-Sahara countries committed to
economic and political reform, market incentives and private
sector growth. Eligibility requirements are established for
participation in the programs and benefits of the bill. The
bill will not require any cuts or increases in the USAID
budget. The bill includes separate Trade and Foreign Policy
Titles.
Free Trade Area. The AGOA directs the President to develop
a plan for trade agreements to establish a U.S.-Sub Sahara
Africa Free Trade Area to provide an incentive for increasing
trade between the U.S. and Africa and to stimulate private
sector development in the region.
Trade Initiative. The AGOA would eliminate quotas on
textiles and apparel from Kenya and Mauritius after these
countries adopt a visa system to guard against transshipment.
It continues the existing no-quota policy in Africa through
2005. Further, it authorizes the President to grant duty-free
treatment for certain products from Africa currently excluded
from the GSP program, subject to an import sensitivity
analysis by the ITC, and extends the GSP program for Africa
for 10 years.
U.S.-Africa Economic Forum. The AGOA would establish a
U.S.-Africa Economic Forum to facilitate annual high level
discussions of bilateral and multilateral trade and
investment policies and initiatives. The Forum would work
with the private sector to develop a long term trade and
investment agenda.
Equity and Investment Funds. The AGOA directs OPIC to
create a privately-funded $150 million equity fund and
privately-funded $500

[[Page S2954]]

Million infrastructure fund for Africa. Both funds would
support innovative investment policies to expand
opportunities for women and to maximize employment
opportunities for the poor.
Greater Attention to Africa. The AGOA calls for at least
one member of the board of directors of the EX-IM Bank and
the OPIC to have extensive private sector experience in
Africa. Both the Bank and OPIC would establish private sector
advisory committees with experience in Africa and both would
report periodically to the Congress on their loan, guarantee
and insurance programs in Africa.

Mr. McCAIN. Mr. President, I rise today to support legislation
introduced by my esteemed colleague, Senator Lugar. The African Growth
and Opportunity Act will create an historic new U.S. trade and
investment policy for Africa.
It is regrettable that the public perception of Sub-Saharan Africa
remains a region which is underdeveloped, poor, ravaged by famine and
wars, and ruled by authoritarian leaders. This is not an accurate
picture of today's Africa.
The Africa of the late 1990s is a continent struggling on the road to
economic and political reform. Some 30 Sub-Saharan African countries
are implementing economic reforms, including liberalizing trade and
investment regimes, rationalizing tariff and exchange rates, and
reducing barriers to investment and stock market development. In
addition, more than 30 Sub-Saharan African countries are also in
various stages of democratic transformation that will allow their
citizens to have the same type of participation in their governments
that, as Americans, we hold dear. Nigeria's recent election, despite
its flaws, is a concrete example of the movement toward democracy in
Africa.
The African Growth and Opportunity Act is an important piece of
legislation designed to promote continued reform in Africa. The main
strength of the bill is its reliance on trade incentives, not financial
aid. These trade incentives are intended to result in the political and
economic well-being of African citizens. American companies are given
incentives to invest in these countries, and help them learn how to
become members of the world marketplace. For many years, we have poured
our financial resources into foreign aid programs that have met with
limited success. This bill is based on the commonsense principle that
if you give a nation a handout, you feed it for a day, but if you teach
it to grow and trade, you assist it to reach permanent independence and
self-reliance.
There is also a benefit for the United States in this legislation.
Currently, United States' exports to Sub-Saharan Africa are $6 billion,
which support 100,000 American jobs. However, the U.S. has only a 7%
share in the African market, while Europe has a 40% share. More U.S.
trade and investment in Sub-Saharan Africa will increase U.S. market
share, and create more jobs here in the U.S.
More important, it should be pointed out that this legislation will
foster interdependence and economic growth between countries that have
been torn apart by war, disease, and harmful economic policies. By
trading with the United States and each other, these nations will see
the benefits of peace and stability to economic growth. An
interdependent and democratic Africa will be less likely to suffer from
civil strife.
I hope that my colleagues will join us in supporting this legislation
that will open up a new chapter in U.S.-African relations.
______

By Mr. McCain:
S. 667. A bill to improve and reform elementary and secondary
education; to the Committee on Finance.

Educating America's Children for Tomorrow (ED-ACT)

Mr. McCain. President, centuries ago, Aristotle wrote, ``All who have
meditated in the art of governing mankind have been convinced that the
fate of empires depends on the education of the youth.'' His words
still hold true today. Educating our children is a critical component
in their quest for personal success and fulfillment, but it also plays
a pivotal role in the success of our nation economically,
intellectually, civically and morally.
Like many Americans, I have grave concerns about the current
condition of our nation's education system. If a report card on our
educational system were sent home today, it would be full of
unsatisfactory and incomplete marks. In fact, it would be full of
``D's'' and ``F's.'' These abominable grades demonstrate our failure to
meet the needs of our nation's students in kindergarten through twelfth
grade.
Failure is clearly evident throughout the educational system. One
prominent illustration of our nation's failure is seen in the results
of the Third International Mathematics and Science Study (TIMSS.) Over
forty countries participated in the 1996 study which tested science and
mathematical abilities of students in the fourth, eighth and twelfth
grades. Tragically, American students scored lower than students in
other countries. According to this study, our twelfth graders scored
near the bottom, placing 19th out of 21 nations in math and 16th in
science, while scoring at the absolutely bottom in physics.
Meanwhile, students in countries which are struggling economically,
socially and politically, such as Russia, outscored U.S. children in
math and scored far above them in advanced math and physics. Clearly,
we must make significant changes in our children's academic performance
in order to remain a viable force in the world economy.
We can also see our failure when we look at the federal government's
efforts to combat illiteracy. We spend over $8 billion a year on
programs to eradicate illiteracy across the country. Yet, we have not
seen any significant improvement in literacy in any segment of our
population. Today, more than 40 million Americans cannot read a menu,
instructions, medicine labels or a newspaper. And, tragically, four out
of ten children in third grade cannot read.
For too long, Washington has been creating new educational programs
which provide good sound-bites for politicians, make great campaign
slogans, or serve the specific needs of select interests groups, but
completely ignore the fundamental academic needs of our children. The
time has come for us to free our schools from the shackles of the
federal government and give them the freedom and the tools to educate
children.
The first step is putting parents back in charge. Federal education
dollars should be spent where they do the most good. The ED-ACT would
funnel millions of dollars directly into our classrooms, rather than
wasting education dollars on federal red tape. By sending federal
elementary and secondary education funds directly to local education
agencies (LEAs), schools will be able to utilize the funds for the
unique needs of their students rather than wasting their time jumping
through hoops for government bureaucrats. Giving the money directly to
the LEAs with strong accountability requirements for the academic
performance and improvement of our children is the right thing to do.
We must have higher learning expectations for our children, but we
cannot and should not have these standards controlled at the national
level. States and local communities must control the development,
implementation and assessment of academic standards. This bill would
prohibit federal funds from being used to develop or implement national
education tests. National tests and standards only result in new
bureaucracies, depriving parents of the opportunity to manage the
education of their children.
ED-ACT strengthens and reauthorizes the successful Troops to Teachers
program. As many of my colleagues know, the Troops to Teachers program
was initially created in 1993 to assist military personnel affected by
defense downsizing who were interested in utilizing their knowledge,
professional skills and expertise as teachers. Unfortunately, the
authorization for this program is set to expire at the end of this
fiscal year.
Local school districts across the city are facing a shortage of two
million teachers over the next decade, and the Troops to Teachers
program is an important resource to help schools address this shortfall
by recruiting, funding and retaining new teachers to make America's
children ready for tomorrow, particularly in the areas of math, reading
and science.
ED-ACT would also encourage states to ensure that all Americans are
fluent in English, while helping develop innovative initiatives to
promote the importance of foreign language skills.

[[Page S2955]]

The ability to speak one or more languages, in addition to English, is
a tremendous resource to the U.S. because it enhances our
competitiveness in global markets. Multilingualism also enhances our
nation's diplomatic efforts and leadership role on the international
front by fostering greater communication and understanding between
people of all nations and cultures.
ED-ACT provides educational opportunities for disadvantaged children
by providing parents and students the freedom to choose the best school
for their unique academic needs, while encouraging schools to be
creative and responsive to the needs of all students. This three-year
demonstration would allow up to ten states or localities to implement a
voucher program empowering low-income parents with more options for
their child's education. Parents should be allowed to use their tax
dollars to send their children to the school of their choice, public or
private. Tuition vouchers would give low- income families the same
choice.

ED-ACT also creates additional financial opportunities for parents,
guardians and communities to plan for the educational expenses of their
children. First, it would increase the amount allowed to be contributed
to a higher education IRA from $500 to $1,000 annually. Under current
law, the maximum amount which could be saved for a child throughout
their lifetime is $9,000, which would not cover the basic costs of
tuition at a private institution, let alone books, foods and living
expenses for a student. This amount barely covers the tuition at a
public four-year institution, but that is before factoring in
inflation, expenses, room and board. In my home state of Arizona, a
four-year degree from one of the three state colleges costs about
$8,800--and that is just for tuition, not books, food, room and board.
In addition, ED-ACT allows a $500 tax credit for taxpayers who make a
voluntary contribution to public or private schools.
This bill would also help develop better educational tools for our
children by gathering and analyzing pertinent data regarding some of
our most vulnerable students, while collecting information about how we
can ensure the best teachers are in our classrooms.
Finally, the last section of the ED-ACT reduces the bureaucratic
costs at the Department of Education by thirty-five percent no later
than October 1, 2004. Far too many resources are spent on funding
bureaucrats in Washington, D.C., rather than teaching our children.
Thomas Jefferson said, ``The purpose of education is to create young
citizens with knowing heads and loving hearts.'' If we fail to give our
children the education they need to nurture their heads and hearts,
then we threaten their futures and the future of our nation. The bill I
am introducing today is an important step towards ensuring that our
children have both the love in their hearts and the knowledge in their
heads to not only dream, but to make their dreams a reality.
Mr. President, I ask unanimous consent that a copy of this bill be
printed in the Record.
There being no objection, the bill was ordered printed in the Record,
as follows:

S. 667

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; DEFINITIONS.

(a) Short Title.--This Act may be cited as the ``EDucating
America's Children for Tomorrow (ED-ACT)''.
(b) Table of Contents.--

Sec. 1. Short title; table of contents; definitions.

TITLE I--EMPOWERING PARENTS AND STUDENTS

Sec. 101. Empowering parents and students.

TITLE II--PROHIBITION REGARDING FUNDING FOR DEVELOPING OR IMPLEMENTING
NATIONAL EDUCATION STANDARDS

Sec. 201. Prohibition regarding funding for developing or implementing
national education standards.

TITLE III--TROOPS-TO-TEACHERS PROGRAM

Sec. 301. Short title.
Sec. 302. Improvement and transfer of jurisdiction of troops-to-
teachers program.

TITLE IV--ENGLISH PLUS AND MULTILINGUALISM

Sec. 401. English plus.
Sec. 402. Multilingualism study.

TITLE V--EDUCATIONAL OPPORTUNITIES FOR DISADVANTAGED CHILDREN

Sec. 501. Purposes.
Sec. 502. Authorization of appropriations; program authority.
Sec. 503. Eligibility.
Sec. 504. Scholarships.
Sec. 505. Eligible children; award rules.
Sec. 506. Applications.
Sec. 507. Approval of programs.
Sec. 508. Amounts and length of grants.
Sec. 509. Uses of funds.
Sec. 510. Effect of programs.
Sec. 511. National evaluation.
Sec. 512. Enforcement.
Sec. 513. Definitions.

TITLE VI--TAX PROVISIONS

Sec. 601. Credit for contributions to schools.
Sec. 602. Increase in annual contribution limit for education
individual retirement accounts.

TITLE VII--DEVELOPING BETTER EDUCATION TOOLS

Sec. 701. Educational tools for underserved students.
Sec. 702. Teacher training.
Sec. 703. Putting the best teachers in the classroom.

TITLE VIII--EMPOWERING STUDENTS

Sec. 801. Empowering students.
(c) Definitions.--In this Act:
(1) Comptroller general.--The term ``Comptroller General''
means the Comptroller General of the United States.
(2) Elementary school; local educational agency; parent;
secondary school; state educational agency.--The terms
``elementary school'', ``local educational agency'',
``parent'', ``secondary school'', and ``State educational
agency'' have the meanings given the terms in section 14101
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801 et seq.).
(3) Poverty line.--The term ``poverty line'' means the
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section
673(2) of the Community Services Block Grant Act (42 U.S.C.
9902(2)) applicable to a family of the size involved.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(5) State.--The term ``State'' means each of the several
States of the United States and the District of Columbia.

TITLE I--EMPOWERING PARENTS AND STUDENTS

SEC. 101. EMPOWERING PARENTS AND STUDENTS.

(a) Direct Awards to Local Educational Agencies.--
(1) In general.--Notwithstanding any other provision of
law, for each fiscal year the Secretary shall award the total
amount of funds described in paragraph (2) directly to local
educational agencies in accordance with paragraph (4) to
enable the local educational agencies to carry out the
authorized activities described in paragraph (5).
(2) Applicable funding.--The total amount of funds referred
to in paragraph (1) are all funds that are appropriated for
the Department of Education for a fiscal year to carry out
programs or activities under the following provisions of law:
(A) Title III of the Goals 2000: Educate America Act (20
U.S.C. 5881 et seq.).
(B) Title IV of the Goals 2000: Educate America Act (20
U.S.C. 5911 et seq.).
(C) Title VI of the Goals 2000: Educate America Act (20
U.S.C. 5951).
(D) The School-to-Work Opportunities Act of 1994 (20 U.S.C.
6101 et seq.).
(E) Section 1502 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6492).
(F) Title II of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6601 et seq.).
(G) Title III of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6801 et seq.).
(H) Title IV of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7101 et seq.).
(I) Part A of title V of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7201 et seq.).
(J) Part B of title V of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7231 et seq.).
(K) Title VI of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7301 et seq.).
(L) Title VII of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7401 et seq.).
(M) Part B of title IX of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7901 et seq.).
(N) Part C of title IX of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7931 et seq.).
(O) Part A of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8001 et seq.).
(P) Part B of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8031 et seq.).
(Q) Part D of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8091 et seq.).
(R) Part F of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8141 et seq.).
(S) Part G of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8161 et seq.).

[[Page S2956]]

(T) Part I of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8241 et seq.).
(U) Part J of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8271 et seq.).
(V) Part K of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8331 et seq.).
(W) Part L of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8351 et seq.).
(X) Part A of title XIII of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8621 et seq.).
(Y) Part C of title XIII of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8671 et seq.).
(Z) Part B of title VII of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11421 et seq.).
(3) Census determination.--
(A) In general.--Each local educational agency shall
conduct a census to determine the number of kindergarten
through grade 12 students that are in the school district
served by the local educational agency for an academic year.
(B) Private school students.--In carrying out subparagraph
(A), each local educational agency shall determine the number
of private school students described in such paragraph for an
academic year on the basis of data the local educational
agency determines reliable.
(C) Submission.--Each local educational agency shall submit
the total number of public and private school children
described in this paragraph for an academic year to the
Secretary not later than March 1 of the academic year.
(D) Penalty.--If the Secretary determines that a local
educational agency has knowingly submitted false information
under this subsection for the purpose of gaining additional
funds under this section, then the local educational agency
shall be fined an amount equal to twice the difference
between the amount the local educational agency received
under this section, and the correct amount the local
educational agency would have received if the agency had
submitted accurate information under this subsection.
(4) Determination of allotments.--From the total applicable
funding available for a fiscal year, the Secretary shall make
allotments to each local educational agency in a State in an
amount that bears the same relation--
(A) to 50 percent of such total applicable funding as the
number of individuals in the school district served by the
local educational agency who are aged 5 through 17 bears to
the total number of such individuals in all school districts
served by all local educational agencies in all States; and
(B) to 50 percent of such total amount as the total amount
all local educational agencies in the State are eligible to
receive under part A of title I of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for
the fiscal year bears to the total amount all local
educational agencies in all States are eligible to receive
under such part for the fiscal year.
(5) Authorized activities.--
(A) In general.--A local educational agency receiving an
allotment under paragraph (4) shall use the allotted funds
for innovative assistance programs described in subparagraph
(B).
(B) Innovative assistance.--The innovative assistance
programs referred to in subparagraph (A) include--
(i) technology programs related to the implementation of
school-based reform programs, including professional
development to assist teachers and other school officials
regarding how to use effectively such equipment and software;
(ii) programs for the acquisition and use of instructional
and educational materials, including library services and
materials (including media materials), assessments, reference
materials, computer software and hardware for instructional
use, and other curricular materials that--

(I) are tied to high academic standards;
(II) will be used to improve student achievement; and
(III) are part of an overall education reform program;

(iii) promising education reform programs, including
effective schools and magnet schools;
(iv) programs to improve the higher order thinking skills
of disadvantaged elementary school and secondary school
students and to prevent students from dropping out of school;
(v) programs to combat illiteracy in the student and adult
populations, including parent illiteracy;
(vi) programs to provide for the educational needs of
gifted and talented children;
(vii) hiring of teachers or teaching assistants to decrease
a school, school district, or statewide student-to-teacher
ratio; and
(viii) school improvement programs or activities described
in sections 1116 and 1117 of the Elementary and Secondary
Education Act of 1965.
(6) Accountability.--
(A) Local educational agency.--A local educational agency
that receives funds under this section in any fiscal year
shall make available for review by parents, community
members, the State educational agency and the Department of
Education--
(i) a proposed budget regarding how such funds shall be
used; and
(ii) an accounting of the actual use of such funds at the
end of the fiscal year of the local educational agency.
(B) School.--Each school receiving assistance under this
section in any fiscal year shall prepare and submit to the
Secretary and make available to the public a detailed plan
that outlines--
(i) clear academic performance objectives for students at
the school;
(ii) a timetable for improving the academic performance of
the students; and
(iii) methods for officially evaluating and measuring the
academic growth or progress of the students.
(b) Direct Awards of Part A of Title I Funding.--
(1) In general.--Notwithstanding any other provision of law
and subject to paragraph (3), the Secretary shall award the
total amount of funds appropriated to carry out part A of
title I of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311 et seq.) for a fiscal year directly to local
educational agencies in accordance with paragraph (2) to
enable the local educational agencies to support programs or
activities, for kindergarten through grade 12 students, that
the local educational agencies deem appropriate.
(2) Eligible local educational agencies.--The Secretary
shall make awards under this section for a fiscal year only
to local educational agencies that are eligible for
assistance under part A of title I of the Elementary and
Secondary Education Act of 1965 for the fiscal year.
(3) Amount.--Each local educational agency shall receive an
amount awarded under this subsection for a fiscal year equal
to the amount the local educational agency is eligible to
receive under part A of title I of the Elementary and
Secondary Education Act of 1965 for the fiscal year.

TITLE II--PROHIBITION REGARDING FUNDING FOR DEVELOPING OR IMPLEMENTING
NATIONAL EDUCATION STANDARDS

SEC. 201. PROHIBITION REGARDING FUNDING FOR DEVELOPING OR
IMPLEMENTING NATIONAL EDUCATION STANDARDS.

No Federal funds may be obligated or expended to develop or
implement national education standards.

TITLE III--TROOPS-TO-TEACHERS PROGRAM

SEC. 301. SHORT TITLE.

This title may be cited as the ``Troops-to-Teachers Program
Improvement Act of 1999''.

SEC. 302. IMPROVEMENT AND TRANSFER OF JURISDICTION OF TROOPS-
TO-TEACHERS PROGRAM.

(a) Recodification, Improvement, and Transfer of Program.--
(1) Section 1151 of title 10, United States Code, is amended
to read as follows:

``Sec. 1151. Assistance to certain separated or retired
members to obtain certification and employment as teachers

``(a) Program Authorized.--The Secretary of Education, in
consultation with the Secretary of Defense and the Secretary
of Transportation with respect to the Coast Guard, may carry
out a program--
``(1) to assist eligible members of the armed forces after
their discharge or release, or retirement, from active duty
to obtain certification or licensure as elementary or
secondary school teachers or as vocational or technical
teachers; and
``(2) to facilitate the employment of such members by local
educational agencies identified under subsection (b)(1).
``(b) Identification of Local Educational Agencies and
States.--(1)(A) In carrying out the program authorized by
subsection (a), the Secretary of Education shall periodically
identify local educational agencies that--
``(i) are receiving grants under title I of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
as a result of having within their jurisdictions
concentrations of children from low-income families; or
``(ii) are experiencing a shortage of qualified teachers,
in particular a shortage of science, mathematics, reading,
special education, or vocational or technical teachers.
``(B) The Secretary may identify local educational agencies
under subparagraph (A) through surveys conducted for that
purpose or by utilizing information on local educational
agencies that is available to the Secretary from other
sources.
``(2) In carrying out the program, the Secretary shall also
conduct a survey of States to identify those States that have
alternative certification or licensure requirements for
teachers, including those States that grant credit for
service in the armed forces toward satisfying certification
or licensure requirements for teachers.
``(c) Eligible Members.--(1) The following members shall be
eligible for selection to participate in the program:
``(A) Any member who--
``(i) during the period beginning on October 1, 1990, and
ending on September 30, 1999, was involuntarily discharged or
released from active duty for purposes of a reduction of
force after six or more years of continuous active duty
immediately before the discharge or release; and
``(ii) satisfies such other criteria for selection as the
Secretary of Education, in consultation with the Secretary of
Defense and

[[Page S2957]]

the Secretary of Transportation, may prescribe.
``(B) Any member--
``(i) who, on or after October 1, 1999--
``(I) is retired for length of service with at least 20
years of active service computed under section 3925, 3926,
8925, or 8926 of this title or for purposes of chapter 571 of
this title; or
``(II) is retired under section 1201 or 1204 of this title;
``(ii) who--
``(I) in the case of a member applying for assistance for
placement as an elementary or secondary school teacher, has
received a baccalaureate or advanced degree from an
accredited institution of higher education; or
``(II) in the case of a member applying for assistance for
placement as a vocational or technical teacher--

``(aa) has received the equivalent of one year of college
from an accredited institution of higher education and has 10
or more years of military experience in a vocational or
technical field; or
``(bb) otherwise meets the certification or licensure
requirements for a vocational or technical teacher in the
State in which such member seeks assistance for placement
under the program; and

``(iii) who satisfies the criteria prescribed under
subparagraph (A)(ii).
``(2) A member who is discharged or released from active
duty, or retires from service, under other than honorable
conditions shall not be eligible to participate in the
program.
``(d) Information Regarding Program.--(1) The Secretary of
Education, in consultation with the Secretary of Defense and
the Secretary of Transportation, shall provide information
regarding the program, and make applications for the program
available, to members as part of preseparation counseling
provided under section 1142 of this title.
``(2) The information provided to members shall--
``(A) indicate the local educational agencies identified
under subsection (b)(1); and
``(B) identify those States surveyed under subsection
(b)(2) that have alternative certification or licensure
requirements for teachers, including those States that grant
credit for service in the armed forces toward satisfying such
requirements.
``(e) Selection of Participants.--(1)(A) Selection of
members to participate in the program shall be made on the
basis of applications submitted to the Secretary of Education
on a timely basis. An application shall be in such form and
contain such information as the Secretary may require.
``(B) An application shall be considered to be submitted on
a timely basis if the application is submitted as follows:
``(i) In the case of an applicant who is eligible under
subsection (c)(1)(A), not later than September 30, 2003.
``(ii) In the case of an applicant who is eligible under
subsection (c)(1)(B), not later than four years after the
date of the retirement of the applicant from active duty.
``(2) In selecting participants to receive assistance for
placement as elementary or secondary school teachers or
vocational or technical teachers, the Secretary shall give
priority to members who--
``(A) have educational or military experience in science,
mathematics, reading, special education, or vocational or
technical subjects and agree to seek employment as science,
mathematics, reading, or special education teachers in
elementary or secondary schools or in other schools under the
jurisdiction of a local educational agency; or
``(B) have educational or military experience in another
subject area identified by the Secretary, in consultation
with the National Governors Association, as important for
national educational objectives and agree to seek employment
in that subject area in elementary or secondary schools.
``(3) The Secretary may not select a member to participate
in the program unless the Secretary has sufficient
appropriations for the program available at the time of the
selection to satisfy the obligations to be incurred by the
United States under subsection (g) with respect to that
member.
``(f) Agreement.--A member selected to participate in the
program shall be required to enter into an agreement with the
Secretary of Education in which the member agrees--
``(1) to obtain, within such time as the Secretary may
require, certification or licensure as an elementary or
secondary school teacher or vocational or technical teacher;
and
``(2) to accept an offer of full-time employment as an
elementary or secondary school teacher or vocational or
technical teacher for not less than four school years with a
local educational agency identified under subparagraph (A) or
(B) of subsection (b)(1), to begin the school year after
obtaining that certification or licensure.
``(g) Stipend and Bonus for Participants.--(1)(A) Subject
to subparagraph (B), the Secretary of Education shall pay to
each participant in the program a stipend in an amount equal
to $5,000.
``(B) The total number of stipends that may be paid under
this paragraph in any fiscal year may not exceed 3,000.
``(2)(A) Subject to subparagraph (B), the Secretary may, in
lieu of paying a stipend under paragraph (1), pay a bonus of
$10,000 to each participant in the program who agrees under
subsection (f) to accept full-time employment as an
elementary or secondary school teacher or vocational or
technical teacher for not less than four years in a high need
school.
``(B) The total number of bonuses that may be paid under
this paragraph in any fiscal year may not exceed 1,000.
``(C) In this paragraph, the term `high need school' means
an elementary school or secondary school that meets one or
more of the following criteria:
``(i) A school with a drop out rate that exceeds the
national average school drop out rate.
``(ii) A school having a large percentage of students (as
determined by the Secretary in consultation with the National
Assessment Governing Board) who speak English as a second
language.
``(iii) A school having a large percentage of students (as
so determined) who are at risk of educational failure by
reason of limited proficiency in English, poverty, race,
geographic location, or economic circumstances.
``(iv) A school at least one-half of whose students are
from families with an income below the poverty line (as that
term is defined by the Office of Management and Budget and
revised annually in accordance with section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2))
applicable to a family of the size involved.
``(v) A school with a large percentage of students (as so
determined) who qualify for assistance under part B of the
Individuals with Disabilities Education Act (20 U.S.C. 1411
et seq.).
``(vi) A school located on an Indian reservation (as that
term is defined in section 403(9) of the Indian Child
Protection and Family Violence Prevention Act (25 U.S.C.
3202(9)).
``(vii) A school located in a rural area.
``(viii) A school meeting any other criteria established by
the Secretary in consultation with the National Governors
Association.
``(3) Stipends and bonuses paid under this subsection shall
be taken into account in determining the eligibility of the
participant concerned for Federal student financial
assistance provided under title IV of the Higher Education
Act of 1965 (20 U.S.C. 1070 et seq.).
``(h) Reimbursement Under Certain Circumstances.--(1) If a
participant in the program fails to obtain teacher
certification or licensure or employment as an elementary or
secondary school teacher or vocational or technical teacher
as required under the agreement or voluntarily leaves, or is
terminated for cause, from the employment during the four
years of required service, the participant shall be required
to reimburse the Secretary of Education for any stipend paid
to the participant under subsection (g)(1) in an amount that
bears the same ratio to the amount of the stipend as the
unserved portion of required service bears to the four years
of required service.
``(2) If a participant in the program who is paid a bonus
under subsection (g)(2) fails to obtain employment for which
such bonus was paid, or voluntarily leaves or is terminated
for cause from the employment during the four years of
required service, the participant shall be required to
reimburse the Secretary for any bonus paid to the participant
under that subsection in an amount that bears the same ratio
to the amount of the bonus as the unserved portion of
required service bears to the four years of required service.
``(3)(A) The obligation to reimburse the Secretary under
this subsection is, for all purposes, a debt owing the United
States.
``(B) A discharge in bankruptcy under title 11 shall not
release a participant from the obligation to reimburse the
Secretary.
``(C) Any amount owed by a participant under paragraph (1)
or (2) shall bear interest at the rate equal to the highest
rate being paid by the United States on the day on which the
reimbursement is determined to be due for securities having
maturities of ninety days or less and shall accrue from the
day on which the participant is first notified of the amount
due.
``(i) Exceptions to Reimbursement Provisions.--(1) A
participant in the program shall not be considered to be in
violation of an agreement entered into under subsection (f)
during any period in which the participant--
``(A) is pursuing a full-time course of study related to
the field of teaching at an eligible institution;
``(B) is serving on active duty as a member of the armed
forces;
``(C) is temporarily totally disabled for a period of time
not to exceed three years as established by sworn affidavit
of a qualified physician;
``(D) is unable to secure employment for a period not to
exceed 12 months by reason of the care required by a spouse
who is disabled;
``(E) is seeking and unable to find full-time employment as
a teacher in an elementary or secondary school or as a
vocational or technical teacher for a single period not to
exceed 27 months; or
``(F) satisfies the provisions of additional reimbursement
exceptions that may be prescribed by the Secretary of
Education.
``(2) A participant shall be excused from reimbursement
under subsection (h) if the participant becomes permanently
totally disabled as established by sworn affidavit of a
qualified physician. The Secretary may also waive
reimbursement in cases of extreme hardship to the
participant, as determined

[[Page S2958]]

by the Secretary in consultation with the Secretary of
Defense or the Secretary of Transportation, as the case may
be.
``(j) Relationship to Educational Assistance Under
Montgomery GI Bill.--The receipt by a participant in the
program of any assistance under the program shall not reduce
or otherwise affect the entitlement of the participant to any
benefits under chapter 30 of title 38 or chapter 1606 of this
title.
``(k) Discharge of State Activities Through Consortia of
States.--The Secretary of Education may permit States
participating in the program authorized by this section to
carry out activities authorized for such States under this
section through one or more consortia of such States.
``(l) Assistance to States in Activities Under Program.--
(1) Subject to paragraph (2), the Secretary of Education may
make grants to States participating in the program authorized
by this section, or to consortia of such States, in order to
permit such States or consortia of States to operate offices
for purposes of recruiting eligible members for participation
in the program and facilitating the employment of
participants in the program in schools in such States or
consortia of States.
``(2) The total amount of grants under paragraph (1) in any
fiscal year may not exceed $4,000,000.
``(m) Limitation on Use of Funds for Management
Infrastructure.--The Secretary of Education may utilize not
more than five percent of the funds available to carry out
the program authorized by this section for a fiscal year for
purposes of establishing and maintaining the management
infrastructure necessary to support the program.
``(n) Definitions.--In this section:
``(1) The term `State' includes the District of Columbia,
American Samoa, the Federated States of Micronesia, Guam, the
Republic of the Marshall Islands, the Commonwealth of the
Northern Mariana Islands, the Commonwealth of Puerto Rico,
the Republic of Palau, and the United States Virgin Islands.
``(2) The term `alternative certification or licensure
requirements' means State or local teacher certification or
licensure requirements that permit a demonstrated competence
in appropriate subject areas gained in careers outside of
education to be substituted for traditional teacher training
course work.''.
(2) The table of sections at the beginning of chapter 58 of
such title is amended by striking the item relating to
section 1151 and inserting the following new item:

``1151. Assistance to certain separated or retired members to obtain
certification and employment as teachers.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on October 1, 1999.
(c) Transfer of Jurisdiction over Current Program.--(1) The
Secretary of Defense, Secretary of Transportation, and
Secretary of Education shall provide for the transfer to the
Secretary of Education of any on-going functions and
responsibilities of the Secretary of Defense and the
Secretary of Transportation with respect the program
authorized by section 1151 of title 10, United States Code,
for the period beginning on October 23, 1992, and ending on
September 30, 1999.
(2) The Secretaries shall complete the transfer under
paragraph (1) not later than October 1, 1999.
(d) Reports.--(1) Not later than March 31, 2002, the
Secretary of Education and the Comptroller General shall each
submit to Congress a report on the effectiveness of the
program authorized by section 1151 of title 10, United States
Code (as amended by subsection (a)), in the recruitment and
retention of qualified personnel by local educational
agencies identified under subsection (b)(1) of such section
1151 (as so amended).
(2) The report under paragraph (1) shall include
information on the following:
(A) The number of participants in the program.
(B) The schools in which such participants are employed.
(C) The grade levels at which such participants teach.
(D) The subject matters taught by such participants.
(E) The effectiveness of the teaching of such participants,
as indicated by any relevant test scores of the students of
such participants.
(F) The extent of any academic improvement in the schools
in which such participants teach by reason of their teaching.
(G) The rates of retention of such participants by the
local educational agencies employing such participants.
(H) The effect of any stipends or bonuses under subsection
(g) of such section 1151 (as so amended) in enhancing
participation in the program or in enhancing recruitment or
retention of participants in the program by the local
educational agencies employing such participants.
(I) Such other matters as the Secretary or the Comptroller
General, as the case may be, considers appropriate.
(3) The report of the Comptroller General under paragraph
(1) shall also include any recommendations of the Comptroller
General as to means of improving the program, including means
of enhancing the recruitment and retention of participants in
the program.
(e) Authorization of Appropriations.--There is authorized
to be appropriated for the Department of Education
$25,000,000 for each of fiscal years 2000 through 2004 for
purposes of carrying out the program authorized by section
1151 of title 10, United States Code (as amended by
subsection (a)).

TITLE IV--ENGLISH PLUS AND MULTILINGUALISM

SEC. 401. ENGLISH PLUS.

(a) Findings.--Congress makes the following findings:
(1) Immigrants to the United States have powerful
incentives to learn English in order to fully participate in
American society and the Nation's economy, and 90 percent of
all immigrant families become fluent in English within the
second generation.
(2) A common language promotes unity among citizens, and
fosters greater communication.
(3) The reality of a global economy is an ever-present
international development that is fostered by trade.
(4) The United States is well postured for the global
economy and international development with its diverse
population and rich heritage of cultures and languages from
around the world.
(5) Foreign language skills are a tremendous resource to
the United States and enhance American competitiveness in the
global economy.
(6) It is clearly in the interest of the United States to
encourage educational opportunities for all citizens and to
take steps to realize the opportunities.
(7) Many American Indian languages are preserved,
encouraged, and utilized, as the languages were during World
War II when the Navajo Code Talkers created a code that could
not be broken by the Japanese or the Germans, for example.
(b) Sense of Congress.--It is the sense of Congress that--
(1) our Nation must support literacy programs, including
programs designed to teach English, as well as those
dedicated to helping Americans learn and maintain languages
in addition to English;
(2) our Nation must recognize the importance of English as
the unifying language of the United States;
(3) as a Nation we must support and encourage Americans of
every age to master English in order to succeed in American
society and ensure a productive workforce;
(4) our Nation must recognize that a skilled labor force is
crucial to United States competitiveness in a global economy,
and the ability to speak languages in addition to English is
a significant skill; and
(5) our Nation must recognize the benefits, both on an
individual and a national basis, of developing the Nation's
linguistic resources.

SEC. 402. MULTILINGUALISM STUDY.

(a) Findings.--Congress finds that--
(1) even though all residents of the United States should
be proficient in English, without regard to their country of
birth, it is also of vital importance to the competitiveness
of the United States that those residents be encouraged to
learn other languages; and
(2) education is the primary responsibility of State and
local governments and communities, and the governments and
communities are responsible for developing policies in the
area of education.
(b) Resident of the United States Defined.--In this
section, the term ``resident of the United States'' means an
individual who resides in the United States, other than an
alien who is not lawfully present in the United States.
(c) Study.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General shall conduct
a study of multilingualism in the United States in accordance
with this section.
(2) Requirements.--
(A) In general.--The study conducted under this section
shall determine--
(i) the percentage of residents in the United States who
are proficient in English and at least 1 other language;
(ii) the predominant language other than English in which
residents referred to in clause (i) are proficient;
(iii) the percentage of the residents described in clause
(i) who were born in a foreign country;
(iv) the percentage of the residents described in clause
(i) who were born in the United States;
(v) the percentage of the residents described in clause
(iv) who are second-generation residents of the United
States; and
(vi) the percentage of the residents described in clause
(iv) who are third-generation residents of the United States.
(B) Age-specific categories.--The study under this section
shall, with respect to the residents described in
subparagraph (A)(i), determine the number of those residents
in each of the following categories:
(i) Residents who have not attained the age of 12.
(ii) Residents who have attained the age of 12, but have
not attained the age of 18.
(iii) Residents who have attained the age of 18, but have
not attained the age of 50.
(iv) Residents who have attained the age of 50.
(C) Federal programs.--In conducting the study under this
section, the Comptroller General shall establish a list of
each Federal program that encourages multilingualism with
respect to any category of residents described in
subparagraph (B).

[[Page S2959]]

(D) Comparisons.--In conducting the study under this
section, the Comptroller General shall compare the
multilingual population described in subparagraph (A) with
the multilingual populations of foreign countries--
(i) in the Western Hemisphere; and
(ii) in Asia.
(d) Report.--Upon completion of the study under this
section, the Comptroller General shall prepare, and submit to
Congress, a report that contains the results of the study
conducted under this section, and such findings and
recommendations as the Comptroller General determines to be
appropriate.

TITLE V--EDUCATIONAL OPPORTUNITIES FOR DISADVANTAGED CHILDREN

SEC. 501. PURPOSES.

The purposes of this title are--
(1) to assist and encourage States and localities to--
(A) give children from low-income families more of the same
choices of all elementary and secondary schools and other
academic programs that children from wealthier families
already have;
(B) improve schools and other academic programs by giving
low-income parents increased consumer power to choose the
schools and programs that the parents determine best fit the
needs of their children; and
(C) more fully engage low-income parents in their
children's schooling; and
(2) to demonstrate, through a competitive discretionary
grant program, the effects of State and local programs that
give middle- and low-income families more of the same choices
of all schools, public, private or religious, that wealthier
families have.

SEC. 502. AUTHORIZATION OF APPROPRIATIONS; PROGRAM AUTHORITY.

(a) Authorization of Appropriations.--For the purpose of
carrying out this title, there are authorized to be
appropriated such sums as may be necessary for each of the
fiscal years 2001 through 2003.
(b) Program Authority.--The Secretary is authorized to
award grants to not more than 10 States or localities, on a
competitive basis, to enable the States or localities to
carry out educational choice programs in accordance with this
title.

SEC. 503. ELIGIBILITY.

A State or locality is eligible for a grant under this
title if--
(1) the State or locality has taken significant steps to
provide a choice of schools to families with school children
residing in the program area described in the application
submitted under section 506, including families who are not
eligible for scholarships under this title;
(2) during the year for which assistance is sought, the
State or locality provides assurances in the application
submitted under section 506 that if awarded a grant under
this title such State or locality will provide scholarships
to parents of eligible children that may be redeemed for
elementary schools or secondary education for their children
at a broad variety of public and private elementary schools
and secondary schools, including religious schools, if any,
serving the area;
(3) the State or locality agrees to match 50 percent of the
Federal funds provided for the scholarships; and
(4) the State or locality allows lawfully operating public
and private elementary schools and secondary schools,
including religious schools, if any, serving the area to
participate in the program.

SEC. 504. SCHOLARSHIPS.

(a) Scholarship Awards.--With funds awarded under this
title, each State or locality awarded a grant under this
title shall provide scholarships to the parents of eligible
children, in accordance with section 505.
(b) Scholarship Value.--The value of each scholarship shall
be the sum of--
(1) $2,000 from funds provided under this title;
(2) $1,000 in matching funds from the State or locality;
and
(3) an additional amount, if any, of State, local, or
nongovernmental funds.
(c) Tax Exemption.--Scholarships awarded under this title
shall not be considered income of the parents for Federal
income tax purposes or for determining eligibility for any
other Federal program.

SEC. 505. ELIGIBLE CHILDREN; AWARD RULES.

(a) Eligible Child.--In this title the term ``eligible
child'' means a child who--
(1) resides in the program area described in the
application submitted under section 506;
(2) will attend a public or private elementary school or
secondary school that is participating in the program; and
(3) subject to subsection (b)(1)(C), is from a low-income
family, as determined by the State or locality in accordance
with regulations of the Secretary, except that the maximum
family income for eligibility under this title shall not
exceed the State or national median family income adjusted
for family size, whichever is higher, as determined by the
Secretary, in consultation with the Bureau of the Census, on
the basis of the most recent satisfactory data available.
(b) Award Rules.--
(1) Continuing eligibility.--Each State or locality
receiving a grant under this title shall provide a
scholarship in each year of its program to each child who
received a scholarship during the previous year of the
program, unless--
(A) the child no longer resides in the program area;
(B) the child no longer attends school;
(C) the child's family income exceeds, by 20 percent or
more, the maximum family income of families who received
scholarships in the preceding year; or
(D) the child is expelled or convicted of a felony,
including felonious drug possession, possession of a weapon
on school grounds, or violent acts against other students or
a member of the school's faculty.
(2) Priority.--If the amount of the grant provided under
this title is not sufficient to provide a scholarship to each
eligible child from a family that meets the requirements of
subsection (a)(3), the State or locality shall provide
scholarships to eligible children from the lowest income
families.

SEC. 506. APPLICATIONS.

(a) Application.--Each State or locality that wishes to
receive a grant under this title shall submit an application
to the Secretary at such time and in such manner as the
Secretary may reasonably require.
(b) Contents.--Each such application shall contain--
(1) a description of the program area;
(2) an economic profile of children residing in the program
area, in terms of family income and poverty status;
(3) the family income range of children who will be
eligible to participate in the proposed program, consistent
with section 505(a)(3), and a description of the applicant's
method for identifying children who fall within that range;
(4) an estimate of the number of children, within the
income range specified in paragraph (3), who will be eligible
to receive scholarships under the program;
(5) information demonstrating that the applicant's proposed
program complies with the requirements of section 503 and
with the other requirements of this title;
(6) a description of the procedures the applicant has used,
including timely and meaningful consultation with private
school officials--
(A) to encourage public and private elementary schools and
secondary schools to participate in the program; and
(B) to ensure maximum educational choices for the parents
of eligible children and for other children residing in the
program area;
(7) an identification of the public, private, and religious
elementary schools and secondary schools that are eligible
and have chosen to participate in the program;
(8) a description of how the applicant will inform children
and their parents of the program and of the choices available
to the parents under the program, including the availability
of supplementary academic services under section 509(2);
(9) a description of the procedures to be used to provide
scholarships to parents and to enable parents to use such
scholarships, such as the issuance of checks payable to
schools;
(10) a description of the procedures by which a school will
make a pro rata refund to the Department of Education for any
participating child who, before completing 50 percent of the
school attendance period for which the scholarship was
provided--
(A) is released or expelled from the school; or
(B) withdraws from school for any reason;
(11) a description of procedures the applicant will use
to--
(A) determine a child's continuing eligibility to
participate in the program; and
(B) bring new children into the program;
(12) an assurance that the applicant will cooperate in
carrying out the national evaluation described in section
511;
(13) an assurance that the applicant will maintain such
records relating to the program as the Secretary may require
and will comply with the Secretary's reasonable requests for
information about the program;
(14) a description of State or local funds (including tax
benefits) and nongovernmental funds, that will be available
under section 504(b)(2) to supplement scholarship funds
provided under this title; and
(16) such other assurance and information as the Secretary
may require.
(c) Revisions.--Each such application shall be updated
annually as may be needed to reflect revised conditions.

SEC. 507. APPROVAL OF PROGRAMS.

(a) Selection.--From applications received each year the
Secretary shall select not more than 10 scholarship programs
on the basis of--
(1) the number and variety of educational choices that are
available under the program to families of eligible children;
(2) the extent to which educational choices among public,
private, and religious schools are available to all families
in the program area, including families that are not eligible
for scholarships under this title;
(3) the proportion of children who will participate in the
program who are from families at or below the poverty line;
(4) the applicant's financial support of the program,
including the amount of State, local, and nongovernmental
funds that will be provided to match Federal funds, including
not only direct expenditures for scholarships, but also other
economic incentives provided to families participating in the
program, such as a tax relief program; and
(5) other criteria established by the Secretary.
(b) Geographic Distribution.--The Secretary shall ensure
that, to the extent feasible, grants are awarded for programs
in urban and rural areas and in a variety of geographic areas
throughout the Nation.

[[Page S2960]]

(c) Consideration.--In considering the factor described in
subsection (a)(4), the Secretary shall consider differences
in local conditions.

SEC. 508. AMOUNTS AND LENGTH OF GRANTS.

(a) Awards.--The Secretary shall award not more than 10
grants annually taking into consideration the availability of
appropriations, the number and quality of applications, and
other factors related to the purposes of this title that the
Secretary determines are appropriate.
(b) Renewal.--Each grant under this title shall be awarded
for a period of not more than 3 years.

SEC. 509. USES OF FUNDS.

The Federal portion of any scholarship awarded under this
title shall be used as follows:
(1) First.--First, for--
(A) the payment of tuition and fees at the school selected
by the parents of the child for whom the scholarship was
provided; and
(B) the reasonable costs of the child's transportation to
the school, if the school is not in the school district to
which the child would be assigned in the absence of a program
under this title.
(2) Second.--If the parents so choose, to obtain
supplementary academic services for the child, at a cost of
not more than $500, from any provider chosen by the parents,
that the State or locality, in accordance with regulations of
the Secretary, determines is capable of providing such
services and has an appropriate refund policy.
(3) Lastly.--Any funds that remain after the application of
paragraphs (1) and (2) shall be used--
(A) for educational programs that help eligible children
achieve high levels of academic excellence in the school
attended by the eligible children for whom a scholarship was
provided, if the eligible children attend a public school; or
(B) by the State or locality for additional scholarships in
the year or the succeeding year of its program, in accordance
with this title, if the child attends a private school.

SEC. 510. EFFECT OF PROGRAMS.

(a) Title I.--Notwithstanding any other provision of law, a
local educational agency that, in the absence of an
educational choice program that is funded under this title,
would provide services to a participating eligible child
under part A of title I of the Elementary and Secondary
Education Act of 1965, shall provide such services to such
child.
(b) Individuals With Disabilities.--Nothing in this title
shall be construed to affect the requirements of part B of
the Individuals with Disabilities Education Act (20 U.S.C.
1411 et seq.).
(c) Aid.--
(1) In general.--Scholarships under this title are to aid
families, not institutions. A parent's expenditure of
scholarship funds at a school or for supplementary academic
services shall not constitute Federal financial aid or
assistance to that school or to the provider of supplementary
academic services.
(2) Supplementary academic services.--
(A) In general.--Notwithstanding paragraph (1), a school or
provider of supplementary academic services that receives
scholarship funds under this title shall, as a condition of
participation under this title, comply with the
antidiscrimination provisions of section 601 of title VI of
the Civil Rights Act of 1964 (42 U.S.C. 1681) and section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794).
(B) Regulations.--The Secretary shall promulgate new
regulations to implement the provisions of subparagraph (A),
taking into account the purposes of this title and the
nature, variety, and missions of schools and providers that
may participate in providing services to children under this
title.
(d) Other Federal Funds.--No Federal, State, or local
agency may, in any year, take into account Federal funds
provided to a State or locality or to the parents of any
child under this title in determining whether to provide any
other funds from Federal, State, or local resources, or in
determining the amount of such assistance, to such State or
locality or to a school attended by such child.
(e) No Discretion.--Nothing in this title shall be
construed to authorize the Secretary to exercise any
direction, supervision, or control over the curriculum,
program of instruction, administration, or personnel of any
educational institution or school participating in a program
under this title.

SEC. 511. NATIONAL EVALUATION.

The Inspector General of the Department of Education shall
conduct a national evaluation of the program authorized by
this title. Such evaluation shall, at a minimum--
(1) assess the implementation of scholarship programs
assisted under this title and their effect on participants,
schools, and communities in the program area, including
parental involvement in, and satisfaction with, the program
and their children's education;
(2) compare the educational achievement of participating
eligible children with the educational achievement of similar
non-participating children before, during, and after the
program; and
(3) compare--
(A) the educational achievement of eligible children who
use scholarships to attend schools other than the schools the
children would attend in the absence of the program; with
(B) the educational achievement of children who attend the
schools the children would attend in the absence of the
program.

SEC. 512. ENFORCEMENT.

(a) Regulations.--The Secretary shall promulgate
regulations to enforce the provisions of this title.
(b) Private Cause.--No provision or requirement of this
title shall be enforced through a private cause of action.

SEC. 513. DEFINITIONS.

In this title--
(1) the term ``locality'' means--
(A) a unit of general purpose local government, such as a
city, township, or village; or
(B) a local educational agency; and
(2) the term ``State'' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico.

TITLE VI--TAX PROVISIONS

SEC. 601. CREDIT FOR CONTRIBUTIONS TO SCHOOLS.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
nonrefundable personal credits) is amended by inserting after
section 25A the following:

``SEC. 25B. CREDIT FOR CONTRIBUTIONS TO SCHOOLS.

``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the
qualified charitable contributions of the taxpayer for the
taxable year.
``(b) Maximum Credit.--The credit allowed by subsection (a)
for any taxable year shall not exceed $500 ($250, in the case
of a married individual filing a separate return).
``(c) Qualified Charitable Contribution.--For purposes of
this section--
``(1) In general.--The term `qualified charitable
contribution' means, with respect to any taxable year, the
amount allowable as a deduction under section 170 (determined
without regard to subsection (e)(1)) for cash contributions
to a school.
``(2) School.--The term `school' means any school which
provides elementary education or secondary education (through
grade 12), as determined under State law.
``(d) Denial of Double Benefit.--No deduction shall be
allowed under this chapter for any contribution for which
credit is allowed under this section.
``(e) Election To Have Credit Not Apply.--A taxpayer may
elect to have this section not apply for any taxable year.''
(b) Clerical Amendment.--The table of sections for subpart
A of part IV of subchapter A of chapter 1 of such Code is
amended by inserting after the item relating to section 25A
the following:

``Sec. 25B. Credit for contributions to schools.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
1998.

SEC. 602. INCREASE IN ANNUAL CONTRIBUTION LIMIT FOR EDUCATION
INDIVIDUAL RETIREMENT ACCOUNTS.

(a) In General.--Section 530(b)(1)(A)(iii) of the Internal
Revenue Code of 1986 (defining education individual
retirement account) is amended by striking ``$500'' and
inserting ``$1,000''.
(b) Conforming Amendment.--Section 4973(e)(1)(A) of such
Code is amended by striking ``$500'' and inserting
``$1,000''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
1998.

TITLE VII--DEVELOPING BETTER EDUCATION TOOLS

SEC. 701. EDUCATIONAL TOOLS FOR UNDERSERVED STUDENTS.

(a) Findings.--Congress makes the following findings:
(1) Limited data exists regarding Native American, Asian
American and many other minority students.
(2) The limited data available regarding these students
demonstrates potentially severe educational problems among
Native American students and a decline in performance among
Asian American students.
(b) Study and Data.--The Comptroller General shall conduct
a study and collect data regarding the education of minority
students, including Native American students, Asian American
students, and all other students who are often combined in
statistical data under the category of other, in order to
provide more extensive and reliable data regarding the
students and to improve the academic preparation of the
students.
(c) Matters Studied.--The study referred to in subsection
(a) shall examine and compile information regarding--
(1) the environment of the students;
(2) the academic achievement scores in reading,
mathematics, and science of the students;
(3) the postsecondary education of the students;
(4) the environment and education of the members of the
students' families; and
(5) the parental involvement in the education of the
students.
(d) Recommendations.--The Comptroller General shall develop
recommendations regarding the development and implementation
of strategies to meet the unique educational needs of the
students described in subsection (a).
(e) Report.--
(1) In general.--The Comptroller General shall prepare a
report regarding the matters studied, the information
collected, and the

[[Page S2961]]

recommendations developed under this section.
(2) Distribution.--The Comptroller General shall distribute
the report described in paragraph (1) to each local
educational agency and State educational agency in the United
States, the Secretary, and Congress.
(f) Funding.--The Secretary shall make available to the
Comptroller General, from any funds available to the
Secretary for salaries and expenses at the Department of
Education, such sums as the Comptroller General determines
necessary to carry out this section.

SEC. 702. TEACHER TRAINING.

(a) Findings.--Congress finds that too often inexperienced
elementary school and secondary school teachers or teachers
with low levels of education are found in schools
predominately serving low-income students.
(b) Study.--The Comptroller General shall conduct a study
to determine whether requiring teacher training in a specific
subject matter or at least a minor degree in a subject matter
(such as mathematics, science, or English results in improved
student performance.

SEC. 703. PUTTING THE BEST TEACHERS IN THE CLASSROOM.

It is the sense of the Senate that--
(1) the individual States should evaluate their teachers on
the basis of demonstrated ability, including tests of subject
matter knowledge, teaching knowledge, and teaching skill;
(2) States in conjunction with the various local education
agencies should develop their own methods of testing their
teachers and other instructional staff with respect to the
specific subjects taught by the teachers and staff, and
should administer the test every 4 years to individual
teachers;
(3) each local educational agency should give serious
consideration to using a portion of the funds made available
under section 101 to develop and implement a method for
evaluating each individual teacher's ability to provide the
appropriate instruction in the classroom; and
(4) each local educational agency is encouraged to give
consideration to providing monetary rewards to teachers by
developing a compensation system that supports teachers who
become increasingly expert in a subject area, are proficient
in meeting the needs of students and schools, and demonstrate
high levels of performance measured against professional
teaching standards, and that will encourage teachers to
continue to learn needed skills and broaden the teachers'
expertise, thereby enhancing education for all students.

TITLE VIII--EMPOWERING STUDENTS

SEC. 801. EMPOWERING STUDENTS.

The Secretary, not later than October 1, 2004, shall
gradually reduce the sum of the costs for employees and
administrative expenses at the Department of Education as of
the date of enactment of this Act incrementally each year
until the sum of the costs for employees and administrative
costs are reduced by 35 percent.

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