[Congressional Record Volume 145, Number 105 (Thursday, July 22, 1999)]
[Senate]
[Pages S9077-S9093]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    TITLE 1--SUBCHAPTER S EXPANSION


         Subtitle A--Eligible Shareholders of an S Corporation

       Sec. 101. Members of a family treated as one shareholder--
     All family members within seven generations who own stock 
     could elect to be treated as one shareholder. The election 
     would be made available to only one family per corporation, 
     must be made with the consent of all shareholders of the 
     corporation and would remain in effect until terminated. This 
     provision is intended to keep S corporations within families 
     that might span several generations.
       Sec. 102. Nonresident Aliens--This section would provide 
     the opportunity for aliens to invest in domestic S 
     corporations and S corporations to operate abroad with a 
     foreign shareholder by allowing nonresident aliens to own S 
     corporation stock.


     Subtitle B--Qualifications and Eligibility Requirements of S 
                              Corporations

       Sec. 111. Issuance of preferred stock permitted--An S 
     corporation would be allowed to issue either convertible or 
     plain vanilla preferred stock. Holders of preferred stock 
     would not be treated as shareholders; thus, ineligible 
     shareholders like corporations or partnerships could own 
     preferred stock interests in S corporations. Subchapter S 
     corporations would receive the same recapitalization 
     treatment as family-owned C corporations. This provision 
     would afford S corporations and their shareholders badly 
     needed access to senior equity.
       Sec. 112. Safe harbor expanded to include convertible 
     debt--An S corporation is not considered to have more than 
     one class of stock if outstanding debt obligations to 
     shareholders meet the ``straight debt'' safe harbor. 
     Currently, the safe harbor provides that straight debt cannot 
     be convertible into stock. The legislation would permit a 
     convertibility provision so long as that provision is 
     substantially the same as one that could have been obtained 
     by a person not related to the S corporation or S corporation 
     shareholders.
       Sec. 113. Repeal of excessive passive investment income as 
     a termination event: This provision would repeal the current 
     rule that terminates S corporation status for certain 
     corporations that have both Subchapter C earnings and profits 
     and that derive more than 25 percent of their gross receipts 
     from passive sources for three consecutive years.
       Sec. 114. Repeal passive income capital gain category--The 
     legislation would retain the rule that imposes a tax on those 
     corporations possessing excess net passive investment income, 
     but, to conform to the general treatment of capital gains, it 
     would exclude capital gains from classification as passive 
     income. Thus, such capital gains would be subject to a 
     maximum 20 percent rate at the shareholder level in keeping 
     with the 1997 tax law change. Excluding capital gains also 
     parallels their treatment under the PHC rules.
       Sec. 115. Allowance of charitable contributions of 
     inventory and scientific property--This provision would allow 
     the same deduction for charitable contributions of inventory 
     and scientific property used to care for the ill, needy, or 
     infants for Subchapter S as for Subchapter C corporations. In 
     addition, S corporations would no longer be disqualified from 
     making ``qualified research contributions'' (charitable 
     contributions of inventory property to educational 
     institutions or scientific research organizations) for use in 
     research or experimentation.
       Sec. 116. C corporation rules to apply for fringe benefit 
     purposes--The current rule that limits the ability of ``more-
     than-two-percent'' S corporation shareholder-employees to 
     exclude certain fringe benefits from wages would be repealed 
     for benefits other than health insurance.


           Subtitle C--Taxation of S Corporation Shareholders

       Sec. 120. Treatment of losses to shareholders--A loss 
     recognized by a shareholder in complete liquidation of an S 
     corporation would be treated as an ordinary loss to the 
     extent the shareholder's adjusted basis in the S corporation 
     stock is attributable to ordinary income that was recognized 
     as a result of the liquidation. Suspended passive activity 
     losses from C corporation years would be allowed as 
     deductions when and to the extent they would be allowed to C 
     corporations.


                       Subtitle D--Effective Date

       Sec. 130. Effective Date--Except as otherwise provided, the 
     amendments made by this legislation shall apply to taxable 
     years beginning after December 31, 1999.
                                 ______
                                 
      By Mr. FEINGOLD (for himself and Mr. Kohl):
  S. 1416. A bill to amend the Agricultural Marketing Agreement of 1937 
to allow a modified bloc voting by cooperative associations of milk 
producers in connection with the scheduled August referendum on Federal 
Milk Marketing Order reform; to the Committee on Agriculture, 
Nutrition, and Forestry.


               DEMOCRACY FOR DAIRY PRODUCERS ACT OF 1999

 Mr. FEINGOLD. Mr. President, I rise to introduce a measure 
that will begin to restore to many dairy farmers throughout the nation, 
part of the market power they have lost in recent years.
  Mr. President, on March 31 of this year, Secretary Glickman put forth 
the Department of Agriculture's final rule on the Federal Milk 
Marketing Order system. As many of you know, that proposal consolidated 
federal orders and made changes to various pricing formulas in current 
law.

[[Page S9078]]

  As mandated in last year's Omnibus Appropriations bill, this new 
federal policy is scheduled to take effect no later than October 1, 
1999. However, prior to October, this nation's farmers will put USDA's 
proposal to a referendum. Farmers will have the opportunity to vote on 
their futures. Or at least that is what is supposed to happen.
  Mr. President, most farmers in the country won't actually get to vote 
on this, the most significant change in dairy policy in sixty years. 
Their dairy marketing cooperatives will cast their votes for them.
  This procedure is called bloc voting and it is used all the time. 
Basically, a Cooperative's Board of Directors decides that, in the 
interest of time, bloc voting will be implemented for that particular 
vote. In the interest of time, but not always in the interest of their 
producer owner-members.
  Mr. President, I do think that bloc voting can be a useful tool in 
some circumstances, but I have serious concerns about its use in the 
August referendum on USDA's plan. Farmers in Wisconsin and in other 
states tell me that they do not agree with their Cooperative's view on 
the upcoming vote. Yet, they have no way to preserve their right to 
make their single vote count.
  After speaking to farmers and officials at USDA, I have learned that 
if a Cooperative bloc votes, individual members simply have no 
opportunity to voice opinions separately. That seems unfair when you 
consider what a monumental issue is at stake. Coops and their members 
do not always have identical interests. We shouldn't ask farmers to 
ignore that fact.
  Mr. President, the Democracy for Dairy Producers Act of 1999 is 
simple and fair. It provides that a cooperative cannot deny any of its 
members a ballot if one or two or ten or all of the members chose to 
vote on their own.
  This will in no way slow down the process at USDA; implementation of 
the final rule will proceed on schedule. Also, I do not expect that 
this would change the final outcome of the vote. Coops could still cast 
votes for their members who do not exercise their right to vote 
individually. And to the extent that coops represent farmers interest, 
farmers are likely to vote along with the coops, but whether they join 
the coops or not, farmers deserve the right to vote according to their 
own views.
  I urge my colleagues to return just a little bit of power to 
America's farmers, and a little bit of pure democracy to the vote on 
the USDA plan which is sure to have such an impact on their future.
  I urge my colleagues to support the Democracy for Dairy Producers 
Act, a dairy bill without regional bias.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Breaux):
  S. 1417. A bill to amend title XIX of the Social Security Act to 
extend the authority of State Medicaid fraud control units to 
investigate and prosecute fraud in connection with Federal health care 
programs and abuse of residents of board and care facilities; to the 
Committee on Finance.


                 health care fraud control act of 1999

  Mr. GRASSLEY. Mr. President, I am joined today by Senator Breaux in 
introducing the Health Care Fraud Control Act of 1999. This bill is an 
effective, efficient and economical way to fight fraud, waste and abuse 
in publicly funded health care programs. It takes a system that is 
successful in combating Medicaid fraud and expands its authority to 
pursue investigations in other federal programs when investigators 
uncover or suspect fraudulent or abusive activities. This bill is 
common sense.
  State Medicaid Fraud Control Units have long been at the forefront of 
health care fraud enforcement. The Health Care Fraud Control Act would 
give these units the authority needed to investigate other fraud and 
abuse cases, including Medicare cases, at the same time as Medicaid 
cases. This bill, which will be introduced by Rep. Rick Lazio (R-N.Y.) 
in the House, would streamline the enforcement process for anti-fraud 
agents, cutting down on bureaucracy and allowing investigators to 
pursue anti-fraud cases more efficiently. This bill is an important 
weapon in the war against health care fraud in the Medicaid and 
Medicare programs.
  The streamlined effort would be especially effective in fighting 
nursing home fraud and neglect. Many times seniors are eligible for 
both Medicare and Medicaid payments. Combined, these two programs cover 
the bulk of the cost of nursing home care in our country. When a 
nursing home receives both Medicare and Medicaid payments, the 
potential for fraud is much too high. As the law stands, even if a 
fraud control unit establishes a strong case showing Medicaid fraud and 
uncovers Medicare fraud at the same time, it must wait while various 
federal agencies investigate the Medicare side before the case can be 
prosecuted.
  Any effort to combat fraud is critical. Medicaid's annual budget is 
$178 billion, and fraud cases can involve significant amounts of money. 
Meanwhile, improper payments through Medicare were $12.6 billion in 
Fiscal Year 1998.
  Expanding the Medicaid anti-fraud units' jurisdiction will help us 
erode health care fraud. With billions of tax dollars wasted each year, 
we need every weapon we can find in the anti-fraud arsenal. We can't 
afford to waste a single health care dollar.
                                 ______
                                 
      By Mr. McCAIN:
  S. 1419. A bill to amend title 36, United States Code, to designate 
May as ``National Military Appreciation Month''; to the Committee on 
the Judiciary.


                  national military appreciation month

  Mr. McCAIN. Mr. President, I rise today to introduce a bill to 
designate the month of May National Military Appreciation Month. As my 
colleagues may recall, I had sponsored a resolution earlier in the 
year, cosponsored by 61 Senators, designating May 1999 as National 
Military Appreciation Month. That resolution, S. Res. 33, passed by a 
vote of 93-0 on April 30. The new bill will make that designation 
permanent.
  The introduction of an All-Volunteer Army was an outgrowth of the 
disenchantment many Americans felt in the wake of the Vietnam War. The 
end of conscription and the transition to the All-Volunteer concept has 
been criticized by some for not adequately reflecting socioeconomic 
divisions within our country. In point of fact, however, with the 
requisite attention and care, it produced the finest armed forces in 
history. How far we had come since the tumultuous times of the 1970s 
when military readiness descended to abysmal levels was evident for all 
the world to see in the overwhelming victory over Iraqi forces during 
Operation Desert Storm. But that success has been taken for granted too 
long. Over 15 years of declining military budgets, combined with record 
high levels of deployments, have stretched the military to precarious 
levels.
  The end of conscription had another, more far-reaching and subtle 
implication: it diminished the percentage of the public, including its 
elected officials, with military experience. This is not a criticism of 
those who did not serve; on the contrary, as a strong supporter of the 
All-Volunteer Army, I remain committed to its survival and success. 
This gradual diminishment in the shared experience of having served in 
uniform, however, makes it increasingly important that the public 
reflect every year on the enormous role their armed forces have on 
preserving freedom.
  As thousands of American soldiers move into position in Kosovo, while 
others continue to serve in Bosnia as well as on the demilitarized zone 
in Korea and around the world, it is imperative that our men and women 
in uniform know of the strong continuing support of their country for 
their dedication and service to this country. Whether we individually 
agree with each and every deployment or not, we have learned to 
separate our support every deployment or not, we have learned to 
separate our support for the armed forces from our differences over the 
policies that sent them into harm's way. Dedicating one month every 
year to express our appreciation for the armed forces, the same month 
in which we recognize Victory in Europe Day, Military Spouse Day, Armed 
Forces Day, and, most importantly, Memorial Day, is an appropriate 
measure that I hope will have the support of all my colleagues in 
Congress.
  Mr. President, I generally take a somewhat dim view of celebratory 
resolutions. But those who fought on the battlefields of Lexington, 
Gettysburg, Normandy, in the Ardennes and on

[[Page S9079]]

Okinawa, in Hue and at Khe Sanh, in the deserts of the Persian Gulf and 
the dusty streets of Mogadish, in the skies over Kosovo and who stand a 
lonely vigil on the DMZ, must not be forgotten. Too much blood has been 
spilled in defense of liberty. We owe to those who perished and those 
who survived, to devote one month out of the year to reflect on the 
sacrifices of those who have worn their nation's uniform throughout its 
history.
  Mr. President, I ask unanimous consent that the bill, the attached 
correspondence in support of S. Res. 33 from the Secretary of the Air 
Force and Air Force Chief of Staff, as well as a letter from retired 
General Gordon Sullivan, president of the Association of the United 
States Army, be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1419

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

     SECTION 1. NATIONAL MILITARY APPRECIATION MONTH.

       (a) Findings.--Congress makes the following findings:
       (1) The freedom and security that citizens of the United 
     States enjoy today are direct results of the vigilance of the 
     United States Armed Forces.
       (2) Recognizing contributions made by members of the United 
     States Armed Forces will increase national awareness of the 
     sacrifices that such members have made to preserve the 
     freedoms and liberties that enrich this Nation.
       (3) It is important to preserve and foster admiration and 
     respect for the service provided by members of the United 
     States Armed Forces.
       (4) It is vital for youth in the United States to 
     understand that the service provided by members of the United 
     States Armed Forces has secured and protected the freedoms 
     that United States citizens enjoy today.
       (5) Recognizing the unfailing support that families of 
     members of the United States Armed Forces have provided to 
     such members during their service and how such support 
     strengthens the vitality of our Nation is important.
       (6) Recognizing the role that the United States Armed 
     Forces plays in maintaining the superiority of the United 
     States as a nation and in contributing to world peace will 
     increase awareness of all contributions made by such Forces.
       (7) It is appropriate to recognize the importance of 
     maintaining a strong, equipped, well-educated, well-trained 
     military for the United States to safeguard freedoms, 
     humanitarianism, and peacekeeping efforts around the world.
       (8) It is proper to foster and cultivate the honor and 
     pride that citizens of the United States feel towards members 
     of the United States Armed Forces for the protection and 
     service that such members provide.
       (9) Recognizing the many sacrifices made by members of the 
     United States Armed Forces is important.
       (10) It is proper to recognize and honor the dedication and 
     commitment of members of the United States Armed Forces, and 
     to show appreciation for all contributions made by such 
     members since the inception of such Forces.
       (b) National Military Appreciation Month.--Chapter 1 of 
     part A of subtitle I of title 36, United States Code, is 
     amended by adding at the end the following:

     ``Sec. 144. National Military Appreciation Month.

       ``The President shall issue each year a proclamation--
       ``(1) designating May as `National Military Appreciation 
     Month'; and
       ``(2) calling on the people of the United States to honor 
     the dedicated service provided by the members of the United 
     States Armed Forces and to observe the month with appropriate 
     ceremonies and activities.''.
       (c) Table of Contents.--The table of contents in chapter 1 
     of part A of subtitle I of title 36, United States Code, is 
     amended by inserting after the item relating to section 143 
     the following new item:

``144. National Military Appreciation Month.''.
                                  ____



                                 Association of the U.S. Army,

                                     Arlington, VA, April 2, 1999.
     Hon. John McCain,
     U.S. Senate,
     Washington, DC.
       Dear Senator McCain: On behalf of the 100,000 members of 
     the Association of the United States Army, I applaud your 
     introduction of Senate Resolution 33, which would designate 
     May, 1999, as National Military Appreciation Month.
       AUSA agrees that Americans should reflect more often on the 
     sacrifices of our military personnel throughout history. 
     Designating a month in which we observe Victory in Europe 
     Day, Armed Forces Week, Military Spouse Day, and Memorial 
     Day, is particularly fitting.
       AUSA supports your efforts and recommends that the 
     resolution be amended to make the observance of National 
     Military Appreciation Month an annual event.
           Sincerely,
                                               Gordon R. Sullivan,
     General, USA Retired.
                                  ____

                                            Department of Defense,


                                   Secretary of the Air Force,

                                      Washington, DC, May 6, 1999.
     Hon. John McCain,
     U.S. Senate,
     Washington, DC.
       Dear Senator McCain: On behalf of the men and women of the 
     United States Air Force, we thank you and the Senate for 
     designating May 1999 as National Military Appreciation Month. 
     As you well know, our airmen are not only engaged in the 
     Balkan operations, but all around the world, with over 
     100,000 people either forward stationed or deployed. We are 
     proud of the personal sacrifice and tremendous service they 
     give our great nation, and it is heartwarming to see the 
     Senate recognize their efforts. Thank you for your gracious 
     show of support.
     Michael E. Ryan,
       General, USAF, Chief of Staff.
     F. Whitten Peters,
       Acting Secretary of the Air Force.
                                 ______
                                 
      By Mr. KERRY (for himself, Mr. Hollings, Mr. Breaux, Mr. Inouye, 
        Mrs. Boxer, Mrs. Feinstein, and Mr. Kennedy):
  S. 1420. A bill to establish a fund for the restoration and 
protection of ocean and coastal resources, to amend and reauthorize the 
Coastal Zone Management Act of 1972, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.


                        coastal stewardship act

  Mr. KERRY. Mr. President, I will shortly be sending to the desk for 
appropriate referral the Coastal Stewardship Act which I am introducing 
today, along with Senators Hollings, Breaux, Inouye, Boxer, Feinstein 
and Kennedy. The goal of the Coastal Stewardship Act is to 
significantly strengthen our national commitment to and capacity to 
protect the coastal communities and all of our coastal and ocean 
environment.
  Our coasts--I know the Chair knows this because he represents a State 
that has enormous fishing interests--our coasts and our oceans are 
increasingly fragile environments, and they are increasingly 
threatened. Their health depends on a very complex chain of ecosystems 
that includes rainwater runoff from inland, estuaries, wetlands, flood 
plains, tidal basins, coral reefs, our fisheries and the whole deal 
more. Damage to any one of those ecosystems can wind up degrading and 
damaging the others, and they can cause severe cultural and economic 
impact for all of our coastal communities.
  Moreover, as our coastal population grows and as coastal development 
increases, as it has been almost every year for the last 50 years, we 
are placing more and more stress on these fragile and increasingly 
unique and interconnecting ecosystems.
  Since 1960, the coastal population in the United States has increased 
by over 50 percent, and that trend is expected to continue. Indeed, it 
is predicted that over the course of the next 10 years or so, well over 
75 percent of the American population will live within 50 miles of 
coastline of one kind or another. In the next decade alone, an 
additional 14 million Americans are expected to settle in coastal 
areas.
  The impact is very clear. On the Atlantic coast, we have had toxic 
outbreaks of pfiesteria. In the Gulf of Mexico, we have a dead zone 
that has formed that harms shrimp stocks and kills off other species. 
Our Nation has lost more than 89 million acres of coastal wetlands, and 
our commercial fisheries are depleted from a combination of 
mismanagement and also ecosystem impacts. Parts of the Great Lakes have 
suffered from nutrient enrichment which is destructive to those 
ecosystems. Finally, even urban areas along our coasts face a unique 
challenge as they work to clean up polluted industrial sites and bring 
their waterfronts back to life.
  The Coastal Stewardship Act creates the Ocean and Coast Conservation 
Fund to receive permanent funding from Federal oil and gas leasing on 
the Outer Continental Shelf. The fund would accrue 10 percent, or a 
minimum of $250 million of OCS revenues each year.
  The CSA uses funds from the Ocean and Coast Conservation Fund and 
general revenues to support the restoration and preservation of our 
coastal and marine resources. The specific investments include the 
following:

[[Page S9080]]

  First, the CSA provides increased support to the Coastal Zone 
Management Act. The CZMA is a highly flexible program that allows 
States to prioritize, design, and implement management plans, meeting 
broad national objectives for coastal environmental protection and 
economic development.
  Second, the CSA establishes a new highly flexible program within the 
Department of Commerce to fund coastal habitat, restoration, and 
preservation projects. With these block grants for conservation, States 
set priorities and decide how and when projects proceed within broad 
national goals.
  Third, it enhances the Federal commitment to the National Marine 
Sanctuary Program, a very successful program that designates unique 
ocean habitat for protection and research. Our 12 national marine 
sanctuaries restore and rebuild marine habitats to their natural 
condition and monitor and maintain already healthy areas.

  Four, the CSA creates a coral reef restoration and conservation 
program at the Department of Commerce. The legislation recognizes the 
importance of maintaining the health and stability of coral reefs for 
their environmental and economic value, and it builds on the work of 
the U.S. Coral Reef Task Force.
  Five, one of the most difficult challenges to overcome in developing 
sound policy for U.S. fisheries has been the lack of high-quality 
information. The CSA establishes a comprehensive program to improve the 
quality and quantity of fisheries information available to evaluate 
stock status, design control measures, and monitor effectiveness of 
those control measures.
  Six, the CSA increases Federal support of State and local enforcement 
by expanding existing cooperative enforcement agreements. These joint 
ventures allow States and local governments to tailor enforcement 
procedures to fit the local needs and available resources, and also 
allow for collaboration between State and local enforcement agencies 
and Federal agencies.
  I will close my comments, Mr. President, by saying to my colleagues 
that some have expressed concern that somehow this broader effort might 
have an impact on reauthorization of coastal zone management and 
national marine sanctuaries, et cetera.
  I assure my colleagues this legislation is in addition to and 
supportive of and supplementary to each of those other efforts which I 
have personally had the privilege of leading in the past years when I 
was chairman of the committee. We have reauthorized those in past 
years, and always we have found that a comprehensive approach has been 
a far more effective and a, frankly, far more needed approach. But 
nothing will stand in the way, I am confident, of our efforts to 
cooperate on each and every one of those efforts.
  We need to better meet the needs of our coastal communities, and it 
is absolutely essential that we look in this country at this issue, not 
as individual pieces that come at us one by one, but as the sum total 
of the parts they represent. We need a national policy to reflect that 
sum total.
  I say to Senator Boxer and Senator Landrieu, who have legislation of 
their own regarding the Outer Continental Shelf, that I am proud to be 
an original cosponsor of Senator Boxer's Resources 2000 effort, and I 
look forward to working with them to try to address all the concerns we 
share regarding these issues.
  Finally, I am very pleased my colleagues on the Commerce Committee 
have joined in this. As the Senate knows, the Commerce Committee has 
primary jurisdiction over our Nation's major coastal programs, and 
Senators Hollings, Breaux, Inouye, and others bring very valuable 
experience to these issues. I am pleased to include their efforts in 
this legislation.
                                 ______
                                 
      By Mr. SCHUMER:
  S. 1422. A bill to amend the Elementary and Secondary Education Act 
of 1965 to improve the quality of education and raise student 
achievement by strengthening accountability, raising standards for 
teachers, rewarding success, and providing better information to 
parents; to the Committee on Health, Education, Labor, and Pensions.


                       school quality counts act

      By Mr. SCHUMER:
  S. 1423. A bill to amend the Internal Revenue Code of 1986 to exclude 
from income $40,000 of the salary of certain teachers who teach high-
poverty schools; to the Committee on Finance.


                     teacher tax relief act of 1999

  Mr. SCHUMER. Mr. President, I rise today to introduce the School 
Quality Counts Act and the Teacher Tax Relief Act of 1999. Mr. 
President, the National Center for Education Statistics estimates that 
our nation will require two million teachers over the next decade. In 
New York State this problem is particularly acute: 40,000 new teachers 
will be needed over the next four years. In New York City, where there 
are 10,000 emergency-certified teachers overwhelmingly concentrated in 
the highest poverty schools, there is virtually no incentive for 
qualified professionals to teach at the highest poverty schools and as 
a result there exists an uneven distribution of well trained teachers.
  Across the nation, many school districts are experiencing both 
geographic and subject area teacher shortages. In many instances, 
school districts with lower tax bases are forced to compete with 
districts that can afford to pay their teachers higher salaries thus 
creating a drain on the pool of experienced and qualified teachers in 
lower income school districts. Attracting and retaining well-qualified 
teachers, and compensating them appropriately, is critical to raising 
student achievement.
  Mr. President, the School Quality Counts Act deals directly with the 
teacher quality issue in three ways: First, the bill strengthens state 
and local accountability for student results by requiring that school 
districts take specific steps to improve teacher quality within two 
years of the bill's enactment; second, the legislation would empower 
parents and taxpayers by providing information on student and school 
performance through the issuance of school report cards; third, the 
bill would provide ``achievement awards'' to those schools that 
demonstrate continuous student improvement.
  In addition to these steps, Mr. President, one of the most concrete 
and important steps we can take now is to create real financial 
incentives for qualified individuals to teach in high-poverty schools. 
The Teacher Tax Relief Act of 1999 would create these incentives by 
exempting the first $40,000 of a teacher's salary from federal income 
tax for qualified individuals teaching academic subjects in schools 
where at least 50 percent of the students qualify for the free or 
reduced price lunch programs. In order to qualify for the exemption, 
the teacher must be qualified to provide instruction in each and every 
academic course they teach. No individual who is teaching under an 
``emergency'' designation is eligible for the exemption and no teacher 
whose gross family income exceeds $120,000 is eligible for the 
exemption. Mr. President, this legislation would increase take-home pay 
for a teacher earning $40,000 by over $5,000 and would steer high 
quality teachers to underperforming school districts in addition to 
providing middle class tax relief. I ask for unanimous consent that the 
text of both bills be printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                S. 1422

       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 ``School Quality Counts Act''.

TITLE I--STATE PLANS FOR IMPROVING BASIC PROGRAMS OPERATED BY STATE AND 
                      LOCAL EDUCATIONAL AGENCIES.

     SEC. 101. ACCOUNTABILITY.

       (a) In General.--Section 1111(b)(2) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311(b)(2)) is 
     amended--
       (1) in subparagraph (A)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by striking the period at the end of clause (ii) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iii) the State toward enabling all children in schools 
     receiving assistance under this part to meet the State's 
     student performance standards.'';
       (2) in subparagraph (B), by striking clauses (i) and (ii) 
     and inserting the following:
       ``(i) that establishes a single high standard of 
     performance for all students;
       ``(ii) that takes into account the progress of all students 
     of each local educational agency and school served under 
     section 1114 or 1115;

[[Page S9081]]

       ``(iii) that compares the proportions of students who are 
     `not proficient', `partially proficient', `proficient', and 
     `advanced' at the grade levels at which assessments are 
     conducted with the proportions of students in each of the 4 
     categories at the same grade level in the previous school 
     year;
       ``(iv) that considers separately, within each State, local 
     educational agency, and school, the performance and progress 
     of students by gender, by each major ethnic and racial group, 
     by English proficiency status, by migrant status, by students 
     with disabilities as compared to nondisabled students, and by 
     economically disadvantaged students as compared to students 
     who are not economically disadvantaged (except that such 
     disaggregation shall not be required in a case where the 
     number of students in a category is insufficient to yield 
     statistically reliable information or the results would 
     reveal individually identifiable information about an 
     individual student); and
       ``(v) that includes annual numerical goals for improving 
     the performance of all groups specified in clause (iv) and 
     narrowing gaps in performance between these groups.''; and
       (3) by adding at the end the following:
       ``(C) The Secretary shall collect and review the 
     information from States on the adequate yearly progress of 
     schools and local educational agencies required under 
     subparagraphs (A) and (B) for the purpose of determining 
     State and local compliance with section 1116.''.
       (b) Regulations.--The Secretary shall promulgate 
     regulations and amendments to regulations to carry out the 
     amendments made by subsection (a) not later than 6 months 
     after the date of the enactment of this Act and shall review 
     State plans submitted under section 1111 of the Elementary 
     and Secondary Education Act of 1965 before such date to 
     determine their compliance with the regulations. The 
     Secretary shall require States to revise their plans if 
     necessary to satisfy the requirements of the regulations. 
     Such revised plans shall be submitted to the Secretary for 
     approval not later than 1 year after the date of enactment of 
     this Act.

     SEC. 102. SCHOOL REPORT CARDS.

       Section 1111(b) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6311(b)) is amended--
       (1) by amending the subsection heading to read as follows: 
     ``(b) Standards, Assessments, and Accountability.--''
       (2) by redesignating paragraphs (4) through (8) as 
     paragraphs (6) through (10), respectively; and
       (3) by inserting after paragraph (3) the following:
       ``(4) Dissemination of results to parents.--Each State plan 
     shall contain assurances that, beginning in the 2001-2002 
     school year, and annually thereafter, all schools served 
     under this part shall--
       ``(A) report the results of all assessments described in 
     paragraph (3) used to measure the performance of a student 
     attending the school to each parent or legal guardian of the 
     student;
       ``(B) report the results in a uniform and understandable 
     format;
       ``(C) ensure that the reports are based on the same 
     assessments described in paragraph (3);
       ``(D) include in the reports a description of whether the 
     student has demonstrated `advanced', `proficient', `partially 
     proficient', or `not proficient' levels of performance in 
     each subject area;
       ``(E) include in the reports--
       ``(i) a comparison of the proportions of students enrolled 
     in that school, in the local educational agency, and in the 
     State who are `not proficient', `partially proficient', 
     `proficient', and `advanced' in each subject area, for each 
     grade level at which assessments are conducted, with 
     proportions in each of the same 4 categories at the same 
     grade levels in the previous school year;
       ``(ii) the percentage of students in the school on which 
     the results in clause (i) are based; and
       ``(iii) information, in the aggregate, on the 
     qualifications of classroom teachers in the student's school, 
     including--

       ``(I) the percentage of classroom teachers in the school 
     who meet all State and local requirements to teach at all 
     grade levels and in all subject areas in which they provide 
     instruction;
       ``(II) in middle and secondary schools, the percentage of 
     classes taught by teachers who do not have a college major, 
     or who have not passed a rigorous subject area test, in the 
     subject being taught; and
       ``(III) the percentage of classroom teachers in the school 
     teaching under `emergency' or other provisional credentials.

       ``(5) Dissemination of results to the public.--Each State 
     plan shall contain assurances that, beginning in the 2001-
     2002 school year, and annually thereafter, each State shall--
       ``(A) ensure that overall student performance data on all 
     assessments described in paragraph (3) are compiled, 
     published, and disseminated widely to the general public;
       ``(B) ensure that the data includes a comparison of the 
     proportions of students who are `not proficient', `partially 
     proficient', `proficient', and `advanced' at the grade levels 
     at which assessments are conducted with proportions in each 
     of the same 4 categories at the same grade levels in the 
     previous school year;
       ``(C) ensure that the data is disaggregated within the 
     State, local educational agency, and school by gender, by 
     each major racial and ethnic group, by English proficiency 
     status, by migrant status, by students with disabilities as 
     compared to nondisabled students, and by economically 
     disadvantaged students as compared to students who are not 
     economically disadvantaged (except that such disaggregation 
     shall not be required in a case where the number of students 
     in any category is insufficient to yield statistically 
     reliable information or the results would reveal individually 
     identifiable information about an individual student);
       ``(D) ensure that the reports are--
       ``(i) distributed to local print and broadcast media; and
       ``(ii) posted on a web site on the Internet.''.

     SEC. 103. TEACHER QUALITY.

       Section 1111 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6311) is amended--
       (1) by redesignating subsections (c) through (g) as 
     subsections (e) through (i), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Teacher Quality.--
       ``(1) Dissemination to parents.--Each State plan shall 
     contain assurances that all schools served under this part 
     make available to each parent, in a uniform and 
     understandable format, information on the qualifications of 
     their child's classroom teachers with regard to the subject 
     areas and grade levels in which the teacher provides 
     instruction. Such information shall include--
       ``(A) whether the teacher has met all State qualification 
     and licensing criteria for the grade levels and subject areas 
     in which the teacher provides instruction;
       ``(B) whether the teacher is teaching under `emergency' or 
     other provisional status;
       ``(C) the college major of the teacher and any other 
     graduate certification or degree held by the teacher, and the 
     field or discipline of each certification or degree.
       ``(2) Special parental notification.--Each State plan shall 
     contain assurances that--
       ``(A) the State shall ensure that all schools served under 
     this part notify in writing the parents or guardians of any 
     student who is receiving academic instruction from a teacher 
     who has not fully met all State requirements to provide 
     instruction at the grade level at which, and in the subject 
     areas in which, the teacher is providing instruction to the 
     student;
       ``(B) the notification required under subparagraph (A) 
     shall be made--
       ``(i) to parents or guardians of any student who is 
     receiving instruction from a teacher who has been exempted 
     from State qualification and licensing criteria or for whom 
     State qualification or licensing criteria have been waived 
     under `emergency', `provisional', or other similar 
     procedures;
       ``(ii) not more than 15 days after the student has been 
     assigned to a teacher described in the subparagraph; and
       ``(C) before being allowed to accept a teaching assignment 
     in the State, a teacher who has not fully met all State 
     requirements to provide instruction at a grade level or in a 
     subject area in which the teacher is to provide instruction 
     is informed of the notification requirement under this 
     paragraph.
       ``(3) Public reporting.--Each State plan shall contain 
     assurances that the State shall compile, aggregate, publish, 
     distribute to major print and broadcast media outlets 
     throughout the State and post on a web site on the Internet 
     the information described in paragraph (1) for each school, 
     local educational agency, and the State.
       ``(4) Qualifications of certain instructional staff.--
       ``(A) Each State plan shall contain assurances that, not 
     later than 2 years after the date of the enactment of the 
     School Quality Counts Act--
       ``(i) all instructional staff who provide services to 
     students under section 1114 or 1115 have demonstrated the 
     subject matter knowledge, teaching knowledge, and teaching 
     skill necessary to teach effectively in the content area or 
     areas in which they provide instruction, according to the 
     criteria described in this paragraph;
       ``(ii) except as provided in subparagraph (F), funds under 
     this part may not be used to support instructional staff who 
     provide services to students under section 1114 or 1115 for 
     whom State qualification or licensing requirements have been 
     waived or who are teaching under an `emergency' or other 
     provisional credential.
       ``(B) For purposes of subparagraph (A), instructional staff 
     who teach elementary school students are required, at a 
     minimum, to hold a bachelors's degree and demonstrate general 
     knowledge, teaching skill, and subject matter knowledge 
     required to teach effectively in reading, writing, 
     mathematics, social studies, science, and other elements of a 
     liberal arts education.
       ``(C) For purposes of subparagraph (A), instructional staff 
     who teach in middle schools and secondary schools are 
     required, at a minimum, to hold a bachelor's degree or higher 
     and demonstrate a high level of competence in all subject 
     areas in which they teach through--
       ``(i) a high level of performance on rigorous academic 
     subject area tests; or
       ``(ii) completion of an academic major in each of the 
     subject areas in which they provide instruction and at least 
     a B average.
       ``(D) For purposes of subparagraph (A) funds under this 
     part may be used to employ teacher aides or other 
     paraprofessionals who

[[Page S9082]]

     do not meet the requirements under subparagraphs (B) and (C) 
     only if such aides or paraprofessionals--
       ``(i) provide instruction only when under the direct and 
     immediate supervision, and in the immediate presence, of 
     instructional staff who meet the criteria of this paragraph; 
     and
       ``(ii) possess particular skills necessary to assist 
     instructional staff in providing services to students served 
     under this Act.
       ``(E) Each State plan shall contain assurances that 
     beginning on the date of the enactment of the School Quality 
     Counts Act, no school served under this part may use funds 
     received under this Act to hire instructional staff who do 
     not fully meet all the criteria for instructional staff 
     described in this paragraph.
       ``(F) Each State plan shall contain assurances that not 
     later than 6 months after the date of the enactment of the 
     School Quality Counts Act, and annually thereafter, the 
     principal of each school served under this part shall, in 
     writing, attest to the fact that all members of their 
     instructional staff meet the requirements of this paragraph. 
     In a case in which there are instructional staff who have yet 
     to meet all requirements to provide instruction in each of 
     the subject areas and at each of the grade levels to which 
     they are assigned to teach, the principal shall submit, in 
     writing, a plan for ensuring that not later than 2 years 
     after the date of the enactment of the School Quality Counts 
     Act all instructional staff will either meet all requirements 
     under this paragraph or will no longer provide instruction to 
     students served under this part.
       ``(G) For purposes of this paragraph, the term 
     `instructional staff' includes any individual who has 
     responsibility for providing any student or group of students 
     with instruction in any of the core academic subject areas, 
     including reading, writing, language arts, mathematics, 
     science, and social studies.
       ``(d) Each State plan shall describe how the State 
     educational agency will help each local educational agency 
     and school develop the capacity to comply with the 
     requirements of this section.''.

     SEC. 104. QUALIFIED TEACHER IN EVERY CLASSROOM.

       (a) In General.--Title I of the Elementary and Secondary 
     Education Act of 1965 is amended by inserting after section 
     1119 the following new section:

     ``SEC. 1119A. A QUALIFIED TEACHER IN EVERY CLASSROOM.

       ``(a) Uses of Funds.--In order to meet the goal under 
     section 1111(c)(4) of ensuring that all instructional staff 
     have the subject matter knowledge, teaching knowledge, and 
     teaching skill necessary to teach effectively in the content 
     area or areas in which they provide instruction, local 
     educational agencies may, notwithstanding any other provision 
     of law, use funds received under title II, title VI, and 
     section 307 of the Department of Education Appropriations 
     Act, 1999, the Higher Education Act of 1965, or the Goals 
     2000: Educate America Act--
       ``(1) to recruit fully qualified teachers, including 
     through the use of signing bonuses or other financial 
     incentives;
       ``(2) to collaborate with programs that recruit, place, and 
     train qualified teachers; or
       ``(3) to provide the necessary education and training, 
     including paying the costs of college tuition and other 
     student fees (for programs that meet the criteria under 
     section 203(2)(A)(i) of the Higher Education Amendments of 
     1998), to help current teachers or other school personnel who 
     do not meet these criteria attain the necessary 
     qualifications and licensing requirements, except that in 
     order to qualify for college tuition payments under this 
     clause, an individual must be within 2 years of completing an 
     undergraduate degree and must agree to teach for at least 2 
     subsequent years after receiving such degree in a school 
     that--
       ``(A) is located in a local educational agency that is 
     eligible in that academic year for assistance under this 
     title; and
       ``(B) for that academic year, has been determined by the 
     Secretary to be a school in which the enrollment of children 
     counted under section 1124(c) exceeds 50 percent of the total 
     enrollment of that school.

       ``(b) Corrective Action.--The State educational agency 
     shall take corrective action consistent with section 
     1116(c)(5)(B)(i), with the goal of meeting the requirements 
     under this paragraph, against any local educational agency 
     that does not make sufficient effort to comply with section 
     103 within the time specified. Such corrective action shall 
     be taken regardless of the conditions set forth in section 
     1116(c)(5)(B)(ii). In a case in which the State fails to take 
     corrective action, the Secretary shall withhold funds from 
     such State up to an amount equal to that reserved under 
     sections 1003(a) and 1603(c).''.
       (b) Instructional Aides.--Section 1119 of Elementary and 
     Secondary Education Act of 1965 is amended by striking 
     subsection (i).
       (c) Clerical Amendment.--The table of sections for the 
     Elementary and Secondary Education Act of 1965 is amended by 
     inserting after the item relating to section 1119 the 
     following new item:

``Sec. 1119A. A qualified teacher in every classroom.''.

     SEC. 105. LIMITATION.

       Part E of title XIV of the Elementary and Secondary 
     Education Act of 1965 is amended by adding at the end the 
     following:

     ``SEC. 14515. PROHIBITION REGARDING PROFESSIONAL DEVELOPMENT 
                   SERVICES.

       ``None of the funds provided under this Act may be used for 
     any professional development services for a teacher that are 
     not directly related to the curriculum and content areas in 
     which the teacher provides instruction.''.

             TITLE II--ACADEMIC ACHIEVEMENT AWARDS PROGRAM

     SEC. 201. ACADEMIC ACHIEVEMENT AWARDS.

       Subpart 1 of part A of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311-6323) is 
     amended--
       (1) by redesignating sections 1120, 1120A, and 1120B as 
     sections 1120A, 1120B, and 1120C, respectively; and
       (2) by inserting after section 1119A, as added by section 
     104 of this Act, the following:

     ``SEC. 1120. ACADEMIC ACHIEVEMENT AWARDS.

       ``(a) Establishment of Programs.--Each State receiving a 
     grant under this title shall establish an Academic 
     Achievement Awards Program to recognize and reward--
       ``(1) local educational agencies and schools that operate 
     programs under section 1114 or 1115 and that demonstrate 
     outstanding yearly progress, consistent with section 
     1111(b)(2)(A), for 2 or more consecutive years; and
       ``(2) teachers who provide instruction in such programs.
       ``(b) Reservation.--Each State receiving a grant under this 
     title shall reserve, from the amount (if any) by which the 
     funds received by the State under this title for the fiscal 
     year exceed the amount received by the State in the preceding 
     fiscal year, 25 percent of such additional amount (plus any 
     additional amount the State may find necessary to address a 
     demonstrated need for an academic achievement award program), 
     for awards to local educational agencies, schools, and 
     teachers of classes that demonstrate outstanding yearly 
     progress (consistent with section 1111(b)(2)(B)) for 2 or 
     more consecutive years.
       ``(c) Types of Awards.--Each State shall use funds reserved 
     under this section to present financial awards to--
       ``(1) the schools and local educational agencies that the 
     State determines have demonstrated the greatest progress in 
     improving student achievement (consistent with section 
     1111(b)(2)(B)); and
       ``(2) teachers who demonstrate the ability to consistently 
     help students make significant achievement gains, consistent 
     with section 1111(b)(2)(B), in the subject areas in which the 
     teacher provides instruction.
       ``(d) Calculation of Award Amounts.--Award amounts to local 
     educational agencies and schools shall be proportionate to 
     the amount of aid such local educational agency or school 
     received under this part for the preceding fiscal year. The 
     amount awarded to a teacher that qualifies for an award under 
     this section shall be uniform throughout the State.
       ``(e) Special Rule.--Each State shall allocate not less 
     than 85 percent of funds reserved under subsection (b) to 
     schools that--
       ``(1) reside in a local educational agency that is eligible 
     in that academic year for assistance under section 1124; and
       ``(2) for that academic year, have been determined by the 
     Secretary to be a school in which the enrollment of children 
     counted under section 1124(c) exceeds 50 percent of the total 
     enrollment of that school,
     or to teachers providing instruction within such schools.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     additional sums as may be necessary to supplement the 
     academic achievement awards program. Such funds shall be 
     allocated to a State in an amount proportionate to the amount 
     of aid such State received under this part for the preceding 
     fiscal year.''.

            TITLE III--CONFORMING AMENDMENTS; EFFECTIVE DATE

     SEC. 301. CONFORMING AMENDMENTS.

       (a) Section 102 Conforming Amendments.--
       (1) Standards and assessments.--Section 1111(b) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311(b)) is amended--
       (A) in paragraph (1)(C), by striking ``paragraph (6)'' and 
     inserting ``paragraph (8)''; and
       (B) in paragraph (7)(A), by striking ``paragraph (6)(B)'' 
     and inserting ``paragraph (8)(B)''.
       (2) School improvement.--Section 1116(c)(1)(C) of such Act 
     (20 U.S.C. 6317(c)(1)(C)) is amended by striking ``section 
     1111(b)(7)(B)'' and inserting ``section 1111(b)(9)(B)''.
       (3) State review and local educational agency 
     improvement.--Section 1116(d)(3)(A)(ii) of such Act (20 
     U.S.C. 6317(d)(3)(A)) is amended by striking ``section 
     1111(b)(7)(B)'' and inserting ``section 1111(b)(9)(B)''.
       (4) Building capacity for involvement.--Section 1118(e)(1) 
     of such Act (20 U.S.C. 6319(e)(1)) is amended by striking 
     ``section 1111(b)(8)'' and inserting ``section 1111(b)(10)''.
       (b) Section 103 Conforming Amendments.--Section 1111(d)(1) 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6311(d)(1)) is amended--
       (1) in subparagraphs (C) and (E)(ii), by striking ``and 
     (c)'' and inserting ``and (e)''; and
       (2) in subparagraph (D), by striking ``or (c)'' and 
     inserting ``or (d)''.

[[Page S9083]]

       (c) Section 201 Conforming Amendments.--
       (1) Authorization of appropriations.--Section 1002 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6302) is amended--
       (A) in subsection (a), by striking ``section 1120(e)'' and 
     inserting ``section 1120A(e)''; and
       (B) in subsection (e), by striking ``section 1120(e)'' and 
     inserting ``section 1120A(e)''.
       (2) Additional state allocations for school improvement.--
     Section 1003(b) of such Act (20 U.S.C. 6303(b)) is amended by 
     striking ``section 1120(e)'' both places it appears and 
     inserting ``section 1120A(e)''.
       (3) Assurances.--Section 1112(c)(1)(F) of such Act (20 
     U.S.C. 6312(c)(1)(F)) is amended by striking ``section 1120'' 
     and inserting ``section 1120A''.
       (4) Local educational agency discretion.--Section 
     1113(b)(1)(C)(i) of such Act (20 U.S.C. 6313(b)(1)(C)(i)) is 
     amended by striking ``section 1120A(c)'' and inserting 
     ``section 1120B(c)''.
       (5) Assurances.--Section 1304(c)(2) of such Act (20 U.S.C. 
     6394(c)(2)) is amended--
       (A) by striking ``section 1120'' and inserting ``section 
     1120A''; and
       (B) by striking ``section 1120A'' and inserting ``section 
     1120B''.
       (6) Programs and projects.--Section 1415(a)(2)(C) of such 
     Act (20 U.S.C. 6435(a)(2)(C)) is amended by striking 
     ``section 1120A'' and inserting ``section 1120B''.
       (7) Supplement, not supplant.--Section 1415(b) of such Act 
     (20 U.S.C. 6435(b)) is amended by striking ``section 1120A'' 
     and inserting ``section 1120B''.

     SEC. 302. EFFECTIVE DATE.

       Except as otherwise provided, the amendments made by this 
     Act shall take effect on the date of the enactment of this 
     Act.
                                  ____


                                S. 1423

       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 ``Teacher Tax Relief Act of 
     1999''.

     SEC. 2. EXCLUSION FROM GROSS INCOME OF WAGES OF CERTAIN 
                   TEACHERS IN HIGH-POVERTY SCHOOLS.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to items 
     specifically excluded from gross income) is amended by 
     redesignating section 138 as section 139 and by inserting 
     after section 137 the following new section:

     ``SEC. 138. WAGES OF TEACHERS IN HIGH-POVERTY SCHOOLS.

       ``(a) In General.--Gross income does not include amounts 
     received as wages by a qualified teacher employed at a high-
     poverty school.
       ``(b) Limitations.--
       ``(1) Amount of exclusion.--The amount excluded under 
     subsection (a) for any taxable year shall not exceed $40,000.
       ``(2) Adjusted gross income.--The exclusion under 
     subsection (a) shall not apply to any taxpayer whose adjusted 
     gross income for the taxable year exceeds $120,000.
       ``(c) Qualified Teacher Defined.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified teacher' means an 
     academic teacher, a special education teacher, or a bilingual 
     teacher. The term does not include an individual teaching 
     under an emergency or other provisional status in which any 
     State teaching qualification or licensing criteria have been 
     waived.
       ``(2) Academic Teacher.--The term `academic teacher' means 
     an individual who meets all of the following criteria:
       ``(A) The teacher has performed at a high level on academic 
     subject matter tests, or has a bachelor's degree or higher 
     with an academic major in each of the subjects taught by the 
     teacher.
       ``(B) The principal of the school where the teacher is 
     assigned asserts that the teacher is qualified to provide 
     instruction in each academic course and in each grade level 
     taught at the school.
       ``(C) In the case of a teacher of students in elementary 
     school, the teacher must have demonstrated the teaching skill 
     and general subject matter knowledge required to teach 
     effectively in reading, writing, mathematics, social studies, 
     science, and other elements of a liberal arts education.
       ``(D) In the case of a teacher of students in middle school 
     or secondary school, the teacher must have demonstrated a 
     high level of teaching skill and subject matter knowledge in 
     all of the subject areas that they teach.
       ``(d) Other Definitions.--For purposes of this section--
       ``(1) Academic subjects.--The term `academic subjects' 
     includes English, language arts, social studies, history, 
     mathematics, science, and related subjects.
       ``(2) High-poverty school.--The term `high-poverty school' 
     means a school in which at least 50 percent of the students 
     attending such school are eligible for free or reduced-cost 
     lunches under the school lunch program established under the 
     National School Lunch Act.
       ``(3) School.--The term `school' means any public school 
     which provides elementary education or secondary education 
     (through grade 12), as determined under State law.
       ``(4) Wages.--The term `wages' has the meaning provided by 
     section 3401(a).''.
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of such Code is amended by 
     striking the item relating to section 139 and inserting the 
     following:

``Sec. 138. Wages of teachers in high-poverty schools.
``Sec. 139. Cross references to other Acts.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts received in taxable years beginning 
     after December 31, 1999.
                                 ______
                                 
      By Mr. EDWARDS (for himself and Mrs. Hutchison):
  S. 1424. A bill to amend the Internal Revenue Code of 1986 to provide 
the same tax treatment for special pay as for combat pay; to the 
Committee on Finance.


               tax exempt military pay orders (tempo) act

  Mr. EDWARDS. Mr. President, I rise to introduce with my colleague Kay 
Bailey Hutchison the Tax Exempt Military Pay Orders (TEMPO) Act. This 
measure will not only correct an inequity in the way we treat our 
deployed armed forces, but it also will help let our soldiers know that 
we recognize and appreciate the sacrifices they and their families 
make.
  Our proposal would provide that income received by a member of the 
Armed Forces of the United States, while receiving special pay, should 
be tax exempt. Currently, members of the U.S. Armed Forces who serve in 
a Presidentially designated ``combat zone'' receive special tax 
exemptions. I think we all recall that this exemption was in effect 
during Kosovo. During Kosovo, soldiers did not have to pay excise taxes 
on phone calls that they make from the combat zone. Nor did they have 
to pay income taxes on the money earned while in that zone.
  The measure we introduce today provides that these same tax 
exemptions would be triggered when the Secretary of Defense designates 
his employees as eligible for ``special pay'' based on hostile 
conditions. Under current law, members of the Armed Forces receive 
special pay when: subject to hostile fire; on duty in which he, or 
others with him, are in imminent danger of such fire; were killed, 
injured or wounded by hostile fire or were on duty in a foreign area in 
which he was subject to the threat of physical harm or imminent danger 
on the basis of civil insurrection, civil war, terrorism, or wartime 
conditions. In the last few years soldiers in Somalia and Haiti have 
received special pay.
  Let me explain why I believe we need to change the tax treatment of 
special pay. The original tax exemption for combat pay was put in place 
during the Korean war. From that time until the fall of the Berlin 
Wall, the employment of U.S. forces almost always was in combat zones. 
But since the end of the cold war, as we all know, our Armed Forces 
have been deployed more often, and in a wider variety of circumstances. 
Today, a soldier with the 82nd Airborne from North Carolina may be sent 
on a mission that is as dangerous as any combat mission, but because it 
is not precisely in a combat zone, he cannot receive any tax benefits.
  Given the current uses of our Armed Forces, I believe the measure we 
propose today makes a great deal of sense. I also believe that making 
this change in the tax code would correct an inequity. Now, I think it 
is only right that soldiers in the Kosovo engagement are receiving tax 
exemptions. But during a recent visit to Fort Bragg, many soldiers and 
their families commented that the same benefits should have been 
extended to the soldiers who served in Somalia and Haiti. I have to say 
that I agreed with them.
  And so, this bill addresses the new realities of the post-code-war 
world. As the Senate knows all too well, the end of the cold war 
brought with it a significant drawdown in the size of our armed forces. 
Additionally, we shifted from an overseas-based force to one based 
primarily in the United States. Almost concurrently, our national 
security strategy has lead us into an era of seemingly continuous 
deployments. In the 40 years between 1950 and 1990, elements of the 
U.S. Army were deployed 10 times. In the less than 10 years since the 
fall of the Berlin Wall, elements of the Army have been deployed 34 
times. The Navy's responses have doubled in the 90's. The Air Force has 
seen its deployed forces rise 400% while its active duty personnel 
dropped 33%. Some of these deployments are a few months in duration; 
some are part

[[Page S9084]]

of a continuous presence--such as our forces in the Sinai. All work 
hardship on both the members deployed and their families, particularly 
when there are repeated or back-to-back deployments.
  These demands contribute to both recruitment and retention problems. 
In recognition of these demands and of the likelihood that we will 
continue to see more of these deployments, this bill recognizes that we 
need to bring our tax code up to date so that it acknowledges these new 
realities.
  Mr. President, let me tell you more about what this proposal would 
do. As I previously said, members of the military who receive combat 
pay get certain tax exemptions. For example:
  The income of the soldier while in the combat zone is tax exempt. So 
is the income of a soldier while hospitalized for injuries received in 
the combat zone and that portion of a pension or retirement acquired 
while in a combat zone. In addition, pay received while a prisoner of 
war as a result of service in the combat zone is tax exempt.
  Special tax rates apply for the surviving spouse of a soldier who is 
missing in action (or presumed dead) in a combat zone.
  All taxes are eliminated for the years the soldier served in the 
combat zone if he is killed in the combat zone.
  There are other exemptions, and I ask unanimous consent that this 
copy of the relevant exemptions be printed in the Record.
  My bill would give those exact same exemptions to soldiers who 
receive special pay.
  Mr. President, as we close out this century and address the realities 
of the new century, I ask the Senate approve this measure as a means of 
acknowledging the sacrifices being demanded of our service members and 
their families.
  Mr. President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

     SECTION 1: SHORT TITLE.

       This Act may be cited as the ``Tax Exempt Military Pay 
     Orders (TEMPO) Act''.

                                S. 1424

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

     SEC. 2. TAX TREATMENT OF SPECIAL PAY FOR MEMSERS OF THE ARMED 
                   FORCES.

       (a) In General.--Subchapter C of chapter 80 of the Internal 
     Revenue Code of 1986 (relating to provisions affecting more 
     than one subtitle) is amended by adding at the end the 
     following:

     ``SEC. 7874. TREATMENT OF SPECIAL PAY FOR MEMBERS OF THE 
                   ARMED FORCES.

       ``(a) General Rule.--For purposes of the following 
     provisions, a special pay area shall be treated in the same 
     manner as if it were a combat zone (as determined under 
     section 112):
       ``(1) Section 2(a)(3) (relating to special rule where 
     deceased spouse was in missing status.--
       ``(2) Section 112 relating to the exclusion of certain 
     combat pay of members of the Armed Forces.
       ``(3) Section 692 (relating to income taxes of members of 
     Armed Forces on death).
       ``(4) Section 2201 (relating to members of the Armed Forces 
     dying in combat zone or by reason of combat-zone-incurred 
     wounds, etc.).
       ``(5) Section 3401(a)(1) (defining wages relating to combat 
     pay for members of the Armed Forces).
       ``(6) Section 4253(d) (relating to the taxation of phone 
     service originating from a combat zone from members of the 
     Armed Forces).
       ``(7) Section 6013(f)(1) (relating to joint return where 
     individual is in missing status).
       ``(8) Some 7508 (relating to time for performing certain 
     acts postponed by reason of service in combat zone).
       ``(b) Special Pay Area.--For purposes of this section, the 
     term `special pay area' means any area in which an individual 
     receives special pay under section 310 of title 37, United 
     States Code, for services performed in such area.''
       ``(b) Conforming Amendment.--The table of sections of 
     subchapter C of chapter 80 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following:

``Sec. 7874. Treatment of special pay.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to remuneration paid to taxable years ending 
     after the date of the enactment of this Act.
                                  ____


            Current Tax Exemptions in Effect for Combat Pay

       Under current law, these exemptions are in effect for 
     members of the Armed Services who receive combat pay:
       The income of the soldier while in the combat zone is tax 
     exempt. So is the income of a soldier while hospitalized for 
     injuries received in the combat zone and that portion of a 
     pension or retirement acquired while in a combat zone. In 
     addition, pay received while a prisoner of war as a result of 
     service in the combat zone is tax exempt. (26 U.S.C. 
     Sec. 112)
       Special tax rates apply for the surviving spouse of a 
     soldier who is missing in action (or presumed dead) in a 
     combat zone. (26 U.S.C. Sec. 2(a)(3))
       All taxes are eliminated for the years the soldier served 
     in the combat zone if he is killed in the combat zone. (27 
     U.S.C. Sec. 692)
       If the soldier is killed in the combat zone, his survivors 
     are entitled to a lower estate tax. (26 U.S.C. Sec. 2201)
       While in the combat zone, the soldier does not have to pay 
     certain federal excise taxes on phone calls. (26 U.S.C. 
     Sec. 4253(d))
       The surviving spouse of a soldier who is missing in action 
     gets the option of filing a joint tax return for up to two 
     years after the termination of the combat zone. (26 U.S.C. 
     Sec. 6013(f)(1))
       Certain tax deadlines and liabilities while in the combat 
     zone are defeated. (26 U.S.C. Sec. 7508)

  Mrs. HUTCHISON. Mr. President, I am pleased to join Senator Edwards 
of North Carolina to offer legislation very important to those members 
of our Armed Forces who are deployed in defense of our nation's 
interests around the world. Our bill will provide for federal tax 
exemption to those serving in hostile areas not officially designated 
as combat zones. The current restrictions on this exemption to formally 
designated combat zones--which do not include many of our peacekeepers 
who face daily threats to their lives--are a half-century old relic of 
the Korean War that do not address the realities of the military 
missions in our post-cold-war world.
  Today there are two combat zones as designated by the President in 
Executive Orders. One is in the Middle East, including the Persian 
Gulf, the Red Sea, the Gulf of Oman, the Gulf of Aden, as well as Iraq, 
Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab 
Emirates. This area has been a combat zone since January 1991. The 
other combat zone is the Kosovo Area of Operations including the 
Federal Republic of Yugoslvia (Serbia/Montenegro), Albania, the 
Adriatic Sea, and the Ionian Sea. This combat zone has been in effect 
since March 1999. Members serving in those areas get a tax exemption.
  Yet, today there are 17 areas considered so dangerous that our troops 
there get a special allowance known as Imminent Danger Pay that do not 
receive the same tax relief that those in a designated combat zone get. 
In fact, combat zone tax provisions did not apply to our troops in 
Somalia, where we lost 18 Rangers in one bloody gunfight.
  Our bill argues, in effect, that if a location is dangerous enough to 
earn the allowance reserved for imminent danger, then it's dangerous 
enough to get favorable tax treatment, too. This would include troops 
that are in some of the most dangerous parts of the world, including 
Algeria, Burundi, Pakistan, Sudan, and Yemen.
  When our troops are deployed in harm's way anywhere, there should not 
be a discrepancy in tax benefits from one location to another. This is 
an administrative distinction that matters little to the brave young 
Americans who are out there defending us. These determinations are made 
after careful study by the Secretary of Defense, based on the inherent 
dangers in a foreign area.
  The Senate expressed its support for addressing this inequity in a 
resolution we passed as part of the FY2000 Defense Authorization Bill. 
Not only is this the right and fair thing to do, but during these times 
of increased deployments and personnel shortages, it is in our national 
interest to continue to show our dedicated service members that we 
appreciate their sacrifice and commitment.
  I commend the Senator from North Carolina for his leadership on this 
issue and urge other Senators to join us in this effort.
                                 ______
                                 
      By Mr. SPECTER:
  S. 1425. A bill to amend the Internal Revenue Code of 1986 to allow a 
10 percent biotechnology investment tax credit and to reauthorize the 
Research and Development tax credit for ten years; to the Committee on 
Finance.


                  BIOTECHNOLOGY TAX CREDIT ACT OF 1999

  Mr. SPECTER. Mr. President, we are faced today with the unique 
challenges brought by the extraordinary biological, technological, and 
medical advances of this decade. We have seen miraculous breakthroughs 
in the fight

[[Page S9085]]

against communicable diseases: the complete eradication of small pox, 
the near global eradication of polio, vaccines for ailments such as 
measles, rubella, and even the flu. Revolutionary new drugs and 
improved surgical techniques allow us all to lead longer, more 
productive lives. But past success is not a guarantee of future 
progress and science does not bear fruit overnight. Breaking the code 
for complex problems takes a steady and sustained commitment of people 
and money. As we enter the next century, we have a responsibility to 
perpetuate and improve upon our enormous capacity to prevent, detect, 
treat, and cure diseases of all types.
  The Congress continues to be gravely concerned with rising health 
care costs, as demonstrated by contentious debate as recently as last 
week during consideration of the Patients' Bill of Rights. According to 
the Health Care Financing Administration (HCFA), health care spending 
in this country had risen to $1.1 trillion in 1997, or an average of 
just under $4,000 per person. Private sources paid for a little over 
half of that, about $585 billion, with the remainder coming from public 
programs like Medicare and Medicaid. HCFA further predicts that public 
spending on health will nearly double over the next decade, reaching 
$2.1 trillion in 2007.
  I disagree with the premise that this is simply a dollars and cents 
problem. I believe science holds our best chance for both combating 
disease and controlling the ever-spiraling costs it imposes on society. 
For victims of cancer and heart disease, scientific research represents 
their only hope for new drugs and medical treatments that can add years 
to life. Research can produce miracle vaccines that save the lives of 
children stricken with deadly diseases like leukemia. And for growing 
numbers of elderly, research holds the key to stopping the ruinous 
effects of Alzheimer's disease, stroke and arthritis--all very 
expensive ailments to treat. To me, the equation is a simple one: less 
disease and illness mean less human suffering and lower health care 
costs.
  Over the next three decades, the number of Americans over age 65 will 
double. My state of Pennsylvania houses the second highest elderly 
population, currently totaling nearly 2 million citizens. Mr. 
President, unless science finds cures and effective treatments for 
disease and illness, our society will face even higher costs and our 
hospitals and nursing facilities will be strained to the breaking 
point.
  As Chairman of the Appropriations Subcommittee on Labor, Health and 
Human Services, and Education, I have said many times that I firmly 
believe that the National Institutes of Health (NIH) is the crown jewel 
of the Federal government, and substantial investment is crucial to 
allow the continuation of the breakthrough research into the next 
decade. In 1981, NIH funding was less than $3.6 billion. For the past 
three years, NIH funding has increased by 6.8 percent in fiscal year 
1997, 7.1 percent in fiscal year 1998, and 15 percent in fiscal year 
1999, for a total of $15.7 billion. I am continuing to fight to double 
the NIH budget, a sentiment which was unanimously supported in the 
United States Senate during the 105th Congress. Further, on January 
19th of this year, I joined my colleagues, Senators Mack, Frist and 
Harkin in introducing S. Res. 19, a Sense of the Senate resolution to 
increase biomedical research funding by $2 billion for fiscal year 
2000.
  Mr. President, I cite continued efforts to increase the Federal 
investment in biomedical research in order to highlight the public 
policy importance of scientific investment. I believe that the Federal 
government also has the responsibility to provide an economic 
environment that promotes Research and Development in biomedical 
research in the private sector as well. To make good business 
decisions, particularly relating to investment in R&D, biomedical and 
``biotech'' firms need to have reliable and well defined tax laws. 
Today I am introducing legislation that would establish a 10 percent 
tax credit for investment in biomedical research, and would extend the 
R & D tax credit to 10 years.
  The purpose of the investment tax credit is to encourage biomedical 
research and to stimulate the economy, as well as to enhance our long-
term competitiveness in the global biomedical arena. The investment tax 
credit would provide a 10 percent tax credit for purchases of capital 
equipment, instruments and supplies used in a laboratory setting by a 
biotechnology company. Without this tax credit, American companies will 
be competing with one hand tied behind their backs.
  The R & D tax credit has proven to be critical to the U.S. biomedical 
research industry. The credit has allowed for many successes in U.S. 
scientific research and innovation, such as rapid progress in finding 
cures for life threatening diseases such as AIDS, cancer, and multiple 
sclerosis. My Subcommittee has held hearings on the state of affairs in 
biomedical research, and I understand from many scientists that we are 
on the cusp of breakthroughs many of today's most complex diseases--
Alzheimer's, AIDS, heart disease, diabetes, and arthritis, to name a 
few. But, the scientists caution, it will only be through sustained 
investment, both public and private, that we will reap the rewards of 
biomedical research. If we cut investment in medical progress today, 
the consequence may be irrevocable and society may rue that decision 
for years to come.
  As we prepare for the 21st century, we must remain committed to 
providing an environment that fosters technological investment, 
scientific exploration, and global competitiveness. Future economic 
growth and the prosperity of all Americans depends on continued R&D in 
all sectors of our nation.
  Mr. President, we must act now to extend the R&D credit and send the 
right signal to our nation's researchers. Failure to act will not only 
jeopardize our research efforts, but it will also threaten the United 
States's world leadership in R&D and perpetuate the rising health care 
costs we so desperately have tried to contain. It should be noted that 
everything that is good and desirable is not necessarily worthy of a 
tax credit, but targeted tax credits are particularly appropriate where 
an activity engaged in by one company or individual provides such 
considerable benefits to society at large.
  We must constantly remind ourselves that medical innovation is the 
most viable, long-term solution for cost-effective quality care. Our 
task in Congress should be to assure that the path of innovation 
remains open, unobstructed and attractive to both public and private 
investors.
  For me, creating a better atmosphere for investment in medical 
research is more than a symbolic goal. It is a recognition that 
expanding our base of scientific knowledge inevitably leads to better 
health, lower health care costs, and an improved quality of life for 
all Americans. Mr. President, I urge my colleagues to support this 
important legislation, and urge its swift adoption.
  In my capacity as chairman of the Appropriations Subcommittee for 
Labor, Health, Human Services and Education, our subcommittee has the 
responsibility for funding the National Institutes of Health. The 
Senate passed a resolution targeting a doubling of National Institutes 
of Health funding over a 5-year period. That requires an enormous 
increase.
  Last year, with the cooperation of my distinguished ranking member, 
Senator Harkin, we increased NIH funding by $2 billion. The year before 
the Senate voted an increase of some $950 million, which was 
conferenced out at $907 million.
  This year the subcommittee faces a 302(b) allocation--if anyone is 
listening on C-Span II, that's how much money the subcommittee is 
allotted under the budget--that is some $12 billion under the 
President's request, about $12 billion under any logical sum of money 
to fund those three departments: The Department of Labor, the 
Department of Health and Human Services, and the Department of 
Education. We are struggling to try to find the funds to match last 
year's $2 billion increase. If we were to reach the goal set by the 
sense-of-the-Senate resolution we would have to come up with $2.3 
billion.
  In talking to the people in the biotech industry, they are very much 
interested in having an investment tax credit. An investment tax credit 
of 10 percent would provide a real tax incentive to induce biotech 
companies to do

[[Page S9086]]

research. We are on the brink of some phenomenal advances as a result 
of what happened with stem cell research late last year. Stem cell 
research has the potential to be a veritable fountain of youth, to 
tackle ailments like Alzheimer's or Parkinson's, or perhaps heart 
disease or cancer.
  There is a controversy on that question, as to whether embryos may 
appropriately be used for research. So far the Department of Health and 
Human Services and their legal counsel concluded that the current 
limitation on research would not apply to research on stem cells after 
they are extracted from embryos. Realistically, there ought to be no 
limitation at all, because in dealing with embryos we are not dealing 
with an entity which could produce life. These are discarded embryos 
from in vitro fertilization.
  This controversy is very similar to the controversy which existed 
with respect to fetal tissue, where arguments were made that using 
fetal tissue would lead to induced abortions where the fact of the 
matter was the fetal tissue was discarded fetal tissue, did not induce 
abortions.
  But the opportunities for phenomenal advances in medical research are 
virtually unlimited. In the absence of the ability of the Congress, 
given budget limitations, to meet the doubling goal within 5 years, an 
investment tax credit would be an enormous help in stimulating 
investments by the biotech companies.
  The research and development tax credit has been extended year by 
year, and a firm statement by Congress extending it for 10 years again 
would be an inducement for biotech.
  Mr. President, I ask unanimous consent that a copy of the bill be 
printed in the Record.

                                S. 1425

       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 ``Biotechnology Tax Credit Act 
     of 1999''.

     SEC. 2. TEN YEAR EXTENSION OF THE RESEARCH AND DEVELOPMENT 
                   TAX CREDIT.

       (a) In General.--Section 41 of the Internal Revenue Code of 
     1986 (relating to credit for increasing research activities) 
     is amended by striking subsection (h) and in its place, 
     insert the following new section:
       ``(h) In General.--This section shall not apply to any 
     amount paid or incurred after June 30, 2009.''
       (b) Conforming Amendment.--Paragraph (1) of section 45C(b) 
     of such Code is amended by striking subparagraph (D).

     SEC. 3. BIOTECHNOLOGY INVESTMENT TAX CREDIT.

       (a) Allowance of Credit.--Section 46(a) of the Internal 
     Revenue Code of 1986 (relating to amount of investment 
     credit) is amended by striking ``and'' at the end of 
     paragraph (2), by striking the period at the end of paragraph 
     (3) and inserting ``, and'', and by adding at the end thereof 
     the following new paragraph:
       ``(4) the biotechnology investment credit.''
       (b) Amount of Credit.--Section 48 of such Code is amended 
     by adding at the end thereof the following new subsection:
       ``(c) Biotechnology Investment Credit.--
       ``(1) In general.--For purposes of section 46, the 
     biotechnology investment credit for any taxable year is an 
     amount equal to 10 percent of the qualified investment for 
     such taxable year.
       ``(2) Qualified investment.--
       ``(A) In general.--For purposes of paragraph (1), the 
     qualified investment for any taxable year is the aggregate 
     of--
       ``(i) the applicable percentage of the basis of each new 
     biotechnology property placed in service by the taxpayer 
     during such taxable year, plus
       ``(ii) the applicable percentage of the cost of each used 
     biotechnology property placed in service by the taxpayer 
     during such taxable year.
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage for any property shall be 
     determined under paragraphs (2) and (7) of section 46(c) (as 
     in effect on the day before the date of the enactment of the 
     Revenue Reconciliation Act of 1990).
       ``(C) Certain rules made applicable.--The provisions of 
     subsections (b) and (c) of section 48 (as in effect on the 
     day before the date of the enactment of the Revenue 
     Reconciliation Act of 1990) shall apply for purposes of this 
     paragraph.
       ``(3) Definitions.--For purposes of this section:
       ``(A) `Biotechnology Property' means capital equipment, 
     instruments and supplies used in a laboratory setting by a 
     biotechnology company. These items would include but would 
     not be limited to microscopes, various laboratory machines, 
     glassware, chemical reagents, and technical books and manuals 
     purchased by a manufacturer for research purposes. Also 
     included are computers and software used primarily to develop 
     data for research and development.
       ``(B) `Biotechnology Company' is an organization that deals 
     with the application of technologies, such as recombinant DNA 
     techniques, biochemistry, molecular and cellular biology, 
     genetics and genetic engineering, biological cell fusion 
     techniques, and new bioprocesses, using living organisms, or 
     parts of organisms, to produce or modify products, to develop 
     microorganisms for specific uses, to identify targets for 
     small molecular pharmaceutical development, to transform 
     biological systems into useful processes and products or to 
     develop microorganisms for specific uses. Potential endpoints 
     for these products, developments and uses shall be for 
     societal benefit through improving human healthcare.''
       ``(4) Coordination with other credits.--This subsection 
     shall not apply to any property to which the energy credit or 
     rehabilitation credit would apply unless the taxpayer elects 
     to waive the application of such credits to such property.
       ``(5) Certain progress expenditure rules made applicable.--
     Rules similar to rules of subsection (c)(4) and (d) of 
     section 46 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990 shall 
     apply for purposes of this subsection.''
       (c) Technical Amendments.--
       (1) Subparagraph (C) of section 49(a)(1) of such code is 
     amended by striking `and' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ,`and', and by adding at the end thereof the following new 
     clause:
       ``(iv) the basis of any new biotechnology property and the 
     cost of any used biotechnology property.''
       (2) Subparagraph (E) of section 50(a)(2) of such Code is 
     amended by striking `section 48(a)(5)(A)' and inserting 
     `section 48(a)(5) or 48(c)(5)'.
       (3) Paragraph (5) of section 50(a) of such Code is amended 
     by adding at the end thereof the following new subparagraph:
       ``(D) Special rules for certain property.--In the case of 
     any biotechnology property which is 3-year property (within 
     the meaning of section 168(e))--
       ``(i) the percentage set forth in clause (ii) of the table 
     contained in paragraph (1)(B) shall be 66 percent,
       ``(ii) the percentage set forth in clause (iii) of such 
     table shall be 33 percent, and
       ``(iii) clauses (iv) and (v) of such table shall not 
     apply.'
       (4)(A) The section heading for section 48 of such Code is 
     amended to read as follows:

     ``SECTION 48: OTHER CREDITS.''

       (B) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 of such Code is amended by striking 
     the item relating to section 48 and inserting the following:

``Sec. 48. Other Credits.''

     SEC. 4. EFFECTIVE DATE.

       The amendments made by this bill shall apply to amounts 
     paid or incurred after June 30, 1999.
                                 ______
                                 
      By Mr. HARKIN (for himself, Mr. Daschle, Mr. Leahy, Mr. Kerrey, 
        Mr. Conrad, and Mr. Johnson):
  S. 1426. A bill to amend the Food Security Act of 1985 to promote the 
conservation of soil and related resources, and for other purposes; to 
the Committee on Agriculture, Nutrition, and Forestry.


                 the conservation security act of 1999

  Mr. HARKIN. Mr. President, I will take a few minutes to talk about 
America's farmers and ranchers and the promise they hold for us and the 
future for our environment, for production of bountiful, safe, and 
nourishing food for us and for the population around the globe.
  Specifically on the issue of conservation, it became a national 
priority in the days of the Dust Bowl, leading to the creation in the 
1930s of the Soil Conservation Service at the Department of 
Agriculture, which is now the Natural Resources Conservation Service. 
With the very foundation of our food supply at risk, the Government 
stepped forward with billions of dollars in assistance to help farmers 
preserve their precious soils.
  Since that time, Federal spending on conservation has steadily 
declined. Yet today agriculture faces a wide range of environmental 
challenges, from overgrazing and manure management to fertilizer runoff 
and water pollution. Urban and rural citizens alike are increasingly 
concerned about the environmental impact of agriculture.
  Farmers and ranchers pride themselves on being good stewards of the 
land, and there are farm-based solutions to these problems being 
implemented all over the country. But every dollar spent on 
constructing a filter strip or developing a nutrient management plan is 
a dollar that farmers don't have in hard times like these. And even in 
better times, there is a lot of competition for that dollar.
  So who benefits from conservation on farm lands? As much or more than 
the

[[Page S9087]]

farmer, it is the rest of us, who depend on the careful stewardship of 
the water that travels across fields and pastures before reaching 
rivers, streams, and our groundwater. Farmers and ranchers tend not 
only to their crops and animals, but also to our public resources.
  Since we all share in these benefits, it is only right that we share 
in their costs. It is time to enter into a true conservation 
partnership with our farmers and ranchers to help ensure that 
conservation is not a luxury that comes and goes but an essential and 
permanent part of sustainable agricultural production nationwide.
  In the 1985 farm bill, we required that farmers who wanted to 
participate in USDA farm programs develop soil conservation plans for 
their highly erodible land. This provision helped put new conservation 
plans in place for our most fragile farmlands. In the most recent farm 
bill, we streamlined conservation programs and established new cost-
share and incentive payments for certain practices.
  Today I am introducing the Conservation Security Act of 1999, 
proposed legislation that builds on our past successes and takes a bold 
step forward in farm and conservation policy.
  My bill would establish a universal and voluntary incentive payment 
program to support and encourage conservation activities by all farmers 
and ranchers. Under this program, farmers and ranchers could receive up 
to $50,000 per year in conservation payments. Under this conservation 
security program, farmers would enter into 3- to 5-year contracts with 
USDA and choose from one of three classes of conservation practices for 
which they would receive a payment based on the number of acres covered 
and the county rental rate for those acres.
  This program is directed toward conservation on working lands. It is 
not a set-aside. It is not an easement program. It is not a 
conservation reserve program. It is a conservation program so that we 
farm in the best way possible to conserve our resources and to prevent 
pollution.

  For implementing a basic set of practices, farmers would receive an 
annual payment of 10 percent of the rental rate of the land covered. I 
call this basic category class I, and it would include such practices 
as nutrient management, conservation tillage, and runoff and drainage 
control.
  There would be a class II under which farmers could receive up to 20 
percent of the rental rate, where farmers would add to their class I 
practices by choosing from a menu of class II practices that would be 
established by the USDA--such things as nutrient management, 
composting, intensive grazing, partial field practices such as buffer 
strips and windbreaks, wetland restoration, and wildlife habitat 
enhancement.
  Then the third class, farmers who wanted to do class III conservation 
practices would enroll their whole farm under a total resource 
management plan that addresses all aspects of air, land, water, and 
wildlife. For that, the farmers would receive a 40-percent payment, 40 
percent of the rental rate of land in that county.
  This bill also provides an incentive for livestock producers. In 
payment for preparing and adopting comprehensive manure management 
plans, producers raising under 1,000 animal units at any given time--
that would be 2,500 hogs, 1,000 beef cattle, 700 dairy cattle, 55,000 
turkeys, or 100,000 chickens--they would be given a per animal 
incentive payment equal to 10 percent of the 5-year average market 
price.
  This program would not replace or otherwise affect any other 
conservation program, not at all, this is to add on, except that a 
farmer could not receive incentive payments under this program in 
addition to incentive payments under another program in addition to 
incentive payments for land already enrolled in a program such as the 
Conservation Reserve Program. In other words, you couldn't have your 
land in the Conservation Reserve Program and then enter this program 
with that same land.
  Again, I emphasize, the Conservation Security Program would be 
totally voluntary. It would be up to the farmer to decide if they want 
to do it. If they do, then they would get additional payments. A lot of 
these practices farmers are already doing now, for which they receive 
little or no support.
  Again, these practices don't just benefit the farmer; in fact, a lot 
of times it may burden the farmer. That farmer may have to do extra 
work, require a little extra time. Maybe some equipment for these kinds 
of conservation practices. The beneficiaries of this are all of us. We 
all will benefit from cleaner air, cleaner streams and rivers, 
protecting our groundwater, wildlife habitats for those of us who like 
to hunt and fish.
  Our private lands are a national resource, and conservation on farm 
and ranchlands provides environmental benefits that are just as 
important as the production of abundant and safe food. I am introducing 
the Conservation Security Act because I believe it will help secure 
both the economic future of our farmers, help them a little bit with 
the safety net, and it will be a cornerstone, I think, of our national 
farm policy and the environmental future of agriculture.
  I am introducing this bill for myself, Senator Daschle, Senator 
Leahy, Senator Kerrey of Nebraska, Senator Conrad, and Senator Johnson.
  I ask other Senators who are interested to contact my staff. We are 
now actively seeking cosponsors for this new voluntary conservation 
program.
  I thank the Chair.
                                 ______
                                 
      By Mr. HATCH (for himself, Mrs. Feinstein, Mr. DeWine, Mr. Biden, 
        Mr. Thurmond, Mr. Bond, Mr. Smith of Oregon, Mr. Helms, Mr. 
        Reid, and Mr. Bryan):
  S. 1428. A bill to amend the Controlled Substances Act and the 
Controlled Substances Import and Export Act relating to the 
manufacture, traffick, import and export of amphetamine and 
methamphetamine, and for other purposes; to the Committee on the 
Judiciary.


             methamphetamine anti-proliferation act of 1999

  Mr. HATCH. Mr. President, I rise to day to introduce the 
Methamphetamine Anti-Proliferation Act of 1999, a very important piece 
of legislation in America's on-going war on drugs. Three years ago I 
introduced the Comprehensive Methamphetamine Act of 1999, which this 
body passed, to address the frightening and very real problem of 
methamphetamine abuse in this country. That legislation has provided 
law enforcement with necessary tools to combat methamphetamine and has 
helped us track and slow the proliferation of methamphetamine 
manufacturing and abuse. However, there remain too many people in this 
country who are determined to undermine our drug laws and turn America 
into one colossal metamphetamine laboratory. For this reason, I, along 
with Senators Feinstein, DeWine, Bond, Thurmond, Biden, Bryan, and 
Reid, are introducing this bipartisan bill that seeks to shield America 
against the proliferation of methamphetamine Manufacturing.
  The methamphetamine threat differs in kind from the threat of other 
illegal drugs because methamphetamine can be made from readily 
available and legal chemicals and substances, and because it poses 
serious dangers to both human life and to the environment. America's 
history of fighting illegal drugs has been long and tiring but with so 
many young Americans still being exposed to so many destructive drugs, 
now is not the time to give up--it is a time to fight smarter and 
harder. The provisions of this bill will provide law enforcement with 
several effective tools that will help us turn the tide of 
proliferation of methamphetamine manufacturing in America.
  Traditionally, the overwhelming majority of illegal drugs consumed in 
America has been manufactured outside of our borders and then illegally 
smuggled into America. The rapid spread and growing use of 
methamphetamine threatens to change the future of where drugs are 
manufactured. Drug pushers are threatening to turn America into a 
producing country of a drug that affects the lives of every American 
because it not only destroys the lives of those who use the drug, but 
also can have devastating effects on people situated around lab sites, 
on law enforcement officials that have to clean the labs, and on the 
environment.
  According to a report prepared by the Community Epidemiology Work 
Group, which is part of the National Institute

[[Page S9088]]

on Drug Abuse, methamphetamine ``abuse levels remain high . . . and 
there is strong evidence to suggest this drug will continue to be a 
problem in West Coast areas and to spread to other areas of the United 
States.'' the reasons given for the ominous prediction are that 
methamphetamine can be produced easily in small, clandestine labs and 
the chemicals used to make methamphetamine are readily available.

  This threat is real and immediate, and the numbers are telling. 
According to the Drug Enforcement Administration, the DEA, the number 
of labs cleaned up by the Administration has almost doubled each year 
since 1995. Last year 5,786 amphetamine and methamphetamine labs were 
seized by DEA and State and local law enforcement officials, and 
millions of dollars were spent on cleaning up the pollutants and toxins 
created and left behind by operators of these labs. In Utah alone, 
there were 266 lab seizures last year, a number which elevated Utah to 
the unenviable position of being ranked third among all states for 
higher per capita clan lab seizures. The problem with the high number 
of manufacturing labs is compounded by the fact that the chemicals and 
substances utilized in the manufacturing process are unstable, 
volatile, and highly combustible. The smallest amounts of these 
chemicals, when mixed improperly, can cause explosions and fires. And 
of course, those operating these labs are not scientists, but rather 
unskilled, ignorant, criminals and fly-by-nights who are completely 
apathetic to the destructive powers that are inherent in the 
manufacturing process. This fact is even more frightening when you 
consider that most of these labs are situated in residences, motels, 
trailers, and vans.
  Let me take a moment to highlight some of the provisions of this bill 
that will assist Federal, State, and local law enforcement in 
preventing the proliferation of methamphetamine manufacturing in 
America.
  First, the bill will bolster the DEA's ability to combat the 
manufacturing and trafficking of methamphetamine and other drugs by 
authorizing the hiring of new agents to carry out a variety of anti-
drug initiatives. Agents will be hired to assist State and local law 
enforcement officials in small and mid-sized communities in all phases 
of methamphetamine manufacturing investigations. Due to the large 
number of manufacturers and traffickers that are setting up shop in 
small and rural cities, law enforcement agencies located in these areas 
are in dire need of the DEA's expert guidance and knowledge of 
methamphetamine investigations, including assistance in interrogating 
suspects, conducting surveillance operations, and collecting evidence 
to build a case. This bill also authorizes the expansion of the number 
of DEA resident offices and posts-of-duty, which are smaller DEA 
offices often set up in small and rural cities that are overwhelmed by 
methamphetamine manufacturing and trafficking.
  Another way this legislation will help the DEA assist State and local 
officials is to provide for the training of State and local law 
enforcement personnel in techniques used in methamphetamine 
investigations and to provide them with certification training in 
handling the dangerously-volatile and toxic wastes produced by 
methamphetamine labs. It also provides for the creation of another DEA 
program that will enable certain State and local law enforcement 
officials to recertify other law enforcement in their regions. These 
programs are authorized for a three year period and designed to pass on 
the DEA's knowledge and expertise to State and local officials so that 
they can become more independent of the DEA and thereafter rely rather 
on each other in combating the scourge of methamphetamine 
manufacturing.

  This bill contains many references to the drug amphetamine, a lesser 
known, but equally dangerous drug. Because the process of manufacturing 
amphetamine is as dangerous as manufacturing methamphetamine, this bill 
seeks to equalize the punishment for manufacturing the two drugs. Other 
than being slightly less potent, amphetamine is manufactured, sold, and 
used in the same manner as methamphetamine. In fact, many times a 
person can set out to manufacture a batch of methamphetamine and end up 
with amphetamine if just one precursor chemical is used in place of 
another. When this happens, drug dealers sell amphetamine as 
methamphetamine and users buy and use it thinking it is 
methamphetamine. The dangers posed to the environment are also the 
same. Amphetamine labs have the same destructing and polluting ability 
as methamphetamine labs. Every law enforcement officer with whom I have 
spoken, including federal and State prosecutors and federal and State 
law enforcement officials, agreed that the penalties for amphetamine 
should be the same as those for methamphetamine.
  Another important section of this bill will assist in preventing the 
manufacture of methamphetamine and other illegal drugs by banning the 
dissemination of drug ``recipes'' and other demonstrative information 
relating to the manufacturing and use of controlled substances. The 
dissemination of this type of information is prohibited if the intent 
of the person disseminating the information is for it to be used for, 
or in furtherance of, a federal crime or if the person disseminating 
the information has knowledge that the person receiving the information 
intends to use the information for, or in furtherance, of a federal 
crime. Currently, there are hundreds of sites on the Internet that 
instruct how to manufacture methamphetamine and other illegal drugs, 
including what ingredients are required, what instruments or equipment 
is needed, and how to combine precisely the ingredients. These step-by-
step instructions will be illegal under this bill if the person posting 
the information or the person receiving the information intends to 
engage in activity that violates our drug laws.
  I was shocked to discover that those who embrace the drug counter-
culture these days are using the Internet to promote, advertise, and 
sell illegal drugs and drug paraphernalia. In 1992, Congress passed a 
law that made it illegal for anyone to sell or offer for sale drug 
paraphernalia. This law resulted in the closings of numerous ``head 
shops,'' yet, now the out-of-business store owners are selling their 
illegal drug paraphernalia on the Internet. This bill will amend the 
anti-drug paraphernalia statute to clarify that advertisements for sale 
include the use of any communication facility, including the Internet, 
to post or publicize in any way any matter, including a telephone 
number or electronic or mail address, knowing that such matter is 
designed to be used to buy, distribute, or otherwise facilitate a 
transaction in drug paraphernalia. This will not only prevent web sites 
from advertising drug paraphernalia for sale, but it will also prohibit 
web sites that do not sell drug paraphernalia from allowing other sites 
that do from advertising on its web site. Currently, anyone can log on 
to the Internet, go to one of the numerous pro-drug sites, and purchase 
illegal drug paraphernalia, such bongs, water pipes, ``Toke'' bottles 
and ``High Again'' bottles, along with descriptions of how these 
devices can assist in getting a better ``high'' from smoking marijuana. 
There are even web sites that advertise for sale marijuana and poppy 
seeds, along with growing and nurturing instructions. This type of 
behavior is not only reprehensible, but it is also illegal, and this 
clarifying provision can help stop this behavior from continuing over 
the Internet.

  Finally, this legislation seeks to impose harsher penalties on 
manufacturers of illegal drugs when their actions create a substantial 
risk of harm to human life or to the environment. The inherent dangers 
of killing innocent bystanders and, at the same time, contaminating the 
environment during the methamphetamine manufacturing process warrant a 
punitive penalty that will deter some from engaging in the activity.
  Mr. President, many people have grown increasingly more skeptical as 
to whether America can ever rid our nation of the dreadful plague of 
illegal drug use. I say to all those skeptics that now is not the time 
to take a defeatist attitude. Too many bright young people are 
depending on us to do what is right. Sure, some measures taken in the 
past have not been as helpful as some may have hoped, but that just 
means we need to keep persevering to find the right answers. I believe 
that this bill contains many of

[[Page S9089]]

the right answers and will help in one of our nation's most difficult 
struggles. We can defeat the drug dealers and traffickers. We must 
fight back for the sake of our children and grandchildren. I hope that 
Senators will join me in this fight and support this very important 
piece of legislation. Mr. President, I ask unanimous consent that a 
copy of this legislation and a summary be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1428

       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 ``Methamphetamine Anti-
     Proliferation Act of 1999''.

     SEC. 2. MANUFACTURING AND DISTRIBUTION OF AMPHETAMINE.

       (a) Manufacture or Distribution of Substantial Quantities 
     of Amphetamine.--Subparagraph (A) of section 401(b)(1) of the 
     Controlled Substances Act (21 U.S.C. 841(b)(1)) is amended--
       (1) by striking ``or'' at the end of clause (vii);
       (2) by adding ``or'' at the end of clause (viii); and
       (3) by inserting after clause (viii) the following new 
     clause:
       ``(ix) 50 grams or more of amphetamine, its salts, optical 
     isomers, and salts of its optical isomers or 500 grams or 
     more of a mixture or substance containing a detectable amount 
     of amphetamine, its salts, optical isomers, or salts of its 
     optical isomers;''.
       (b) Manufacture or Distribution of Lesser Quantities of 
     Amphetamine.--Subparagraph (B) of such section 401(b)(1) is 
     amended--
       (1) by striking ``or'' at the end of clause (vii);
       (2) by adding ``or'' at the end of clause (viii); and
       (3) by inserting after clause (viii) the following new 
     clause:
       ``(ix) 5 grams or more of amphetamine, its salts, optical 
     isomers, and salts of its optical isomers or 50 grams or more 
     of a mixture or substance containing a detectable amount of 
     amphetamine, its salts, optical isomers, or salts of its 
     optical isomers;''.

     SEC. 3. IMPORT AND EXPORT OF AMPHETAMINE.

       (a) Import or Export of Substantial Quantities of 
     Amphetamine.--Paragraph (1) of section 1010(b) of the 
     Controlled Substances Import and Export Act (21 U.S.C. 
     960(b)) is amended--
       (1) by striking ``or'' at the end of subparagraph (G);
       (2) by striking the period at the end of subparagraph (H) 
     and inserting ``; or''; and
       (3) by inserting after subparagraph (H) the following new 
     subparagraph:
       ``(I) 50 grams or more of amphetamine, its salts, optical 
     isomers, and salts of its optical isomers or 500 grams or 
     more of a mixture or substance containing a detectable amount 
     of amphetamine, its salts, optical isomers, or salts of its 
     optical isomers;''.
       (b) Import or Export of Lesser Quantities of Amphetamine.--
     Paragraph (2) of such section 1010(b) is amended--
       (1) by striking ``or'' at the end of subparagraph (G);
       (2) by striking the period at the end of subparagraph (H) 
     and inserting ``; or''; and
       (3) by inserting after subparagraph (H) the following new 
     subparagraph:
       ``(I) 5 grams or more of amphetamine, its salts, optical 
     isomers, and salts of its optical isomers or 50 grams or more 
     of a mixture or substance containing a detectable amount of 
     amphetamine, its salts, optical isomers, or salts of its 
     optical isomers;''.

     SEC. 4. ENHANCED PUNISHMENT OF METHAMPHETAMINE AND 
                   AMPHETAMINE LABORATORY OPERATORS.

       (a) Federal Sentencing Guidelines.--
       (1) In general.--Pursuant to its authority under section 
     994(p) of title 28, United States Code, the United States 
     Sentencing Commission shall amend the Federal sentencing 
     guidelines in accordance with paragraph (2) with respect to 
     any offense relating to the manufacture, import, export, or 
     traffick in amphetamine or methamphetamine (including an 
     attempt or conspiracy to do any of the foregoing) in 
     violation of--
       (A) the Controlled Substances Act (21 U.S.C. 801 et seq.);
       (B) the Controlled Substances Import and Export Act (21 
     U.S.C. 951 et seq.); or
       (C) the Maritime Drug Law Enforcement Act (46 U.S.C. App. 
     1901 et seq.).
       (2) Requirements.--In carrying out this subsection, the 
     United States Sentencing Commission shall, with respect to 
     each offense described in paragraph (1)--
       (A) increase the base offense level for the offense so that 
     the base offense level is the same as the base offense level 
     applicable to an identical amount of methamphetamine; or
       (B) if the offense created a substantial risk of danger to 
     the health and safety of a minor or incompetent, increase the 
     base offense level for the offense by not less than 6 offense 
     levels above the level established under subparagraph (A).
       (3) Emergency authority to sentencing commission.--The 
     United States Sentencing Commission shall promulgate 
     amendments pursuant to this subsection as soon as practicable 
     after the date of the enactment of this Act in accordance 
     with the procedure set forth in section 21(a) of the 
     Sentencing Act of 1987 (Public Law 100-182), as though the 
     authority under that Act had not expired.
       (b) Effective Date.--The amendments made pursuant to this 
     section shall apply with respect to any offense occurring on 
     or after the date that is 60 days after the date of the 
     enactment of this Act.

     SEC. 5. ADVERTISEMENTS FOR DRUG PARAPHERNALIA AND SCHEDULE I 
                   CONTROLLED SUBSTANCES.

       (a) Drug Paraphernalia.--Section 422 of the Controlled 
     Substances Act (21 U.S.C. 863) is amended--
       (1) in subsection (a)(1), by inserting ``, directly or 
     indirectly advertise for sale,'' after ``sell''; and
       (2) by adding at the end the following:
       ``(g) In this section, the term `directly or indirectly 
     advertise for sale' includes the use of any communication 
     facility (as that term is defined in section 403(b)) to post, 
     publicize, transmit, publish, link to, broadcast, or 
     otherwise advertise any matter (including a telephone number 
     or electronic or mail address) knowing that such matter has 
     the purpose of seeking or offering, or is designed to be 
     used, to receive, buy, distribute, or otherwise facilitate a 
     transaction in.''.
       (b) Schedule I Controlled Substances.--Section 403(c) of 
     such Act (21 U.S.C. 843(c)) is amended--
       (1) in the first sentence, by inserting before the period 
     the following: ``, or to directly or indirectly advertise for 
     sale (as that term is defined in section 422(g)) any Schedule 
     I controlled substance''; and
       (2) in the second sentence, by striking ``term 
     `advertisement' '' and inserting ``term `written 
     advertisement' ''.

     SEC. 6. CONTINUING CRIMINAL ENTERPRISES.

       Section 408 of the Controlled Substances Act of (21 U.S.C. 
     848) is amended--
       (1) in subsection (c)(2)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``violations of'' and inserting ``3 or more acts made 
     punishable by''; and
       (B) in subparagraph (A), by striking ``are'' and inserting 
     ``series is''; and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) This section may not be construed to require, in any 
     trial before a jury, unanimity as to the identities of--
       ``(1) the predicate acts specified in subsection (c)(2); or
       ``(2) the other persons specified in subsection 
     (c)(2)(A).''.

     SEC. 7. MANDATORY RESTITUTION FOR VIOLATIONS OF CONTROLLED 
                   SUBSTANCES ACT AND CONTROLLED SUBSTANCES IMPORT 
                   AND EXPORT ACT RELATING TO AMPHETAMINE AND 
                   METHAMPHETAMINE.

       (a) Mandatory Restitution.--Section 413(q) of the 
     Controlled Substances Act (21 U.S.C. 853(q)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``may'' and inserting ``shall'';
       (2) by inserting ``amphetamine or'' before 
     ``methamphetamine'' each place it appears; and
       (3) in paragraph (2)--
       (A) by inserting ``, the State or local government 
     concerned, or both the United States and the State or local 
     government concerned'' after ``United States'' the first 
     place it appears; and
       (B) by inserting ``or the State or local government 
     concerned, as the case may be,'' after ``United States'' the 
     second place it appears.
       (b) Deposit of Amounts in Department of Justice Assets 
     Forfeiture Fund.--Section 524(c)(4) of title 28, United 
     States Code, is amended--
       (1) by striking ``and'' at the end of subparagraph (B);
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) all amounts collected--
       ``(i) by the United States pursuant to a reimbursement 
     order under paragraph (2) of section 413(q) of the Controlled 
     Substances Act (21 U.S.C. 853(q)); and
       ``(ii) pursuant to a restitution order under paragraph (1) 
     or (3) of section 413(q) of the Controlled Substances Act for 
     injuries to the United States.''.

     SEC. 8. ENDANGERING HUMAN LIFE OR THE ENVIRONMENT WHILE 
                   ILLEGALLY MANUFACTURING CONTROLLED SUBSTANCES.

       (a) Harm to the Environment.--(1) Section 417 of the 
     Controlled Substances Act (21 U.S.C. 858) is amended by 
     inserting ``or the environment'' after ``to human life''.
       (2) The table of contents for that Act is amended in the 
     item relating to section 417 by inserting ``or the 
     environment'' after ``to human life''.
       (b) Enhanced Penalty for Establishment of Manufacturing 
     Operation.--That section is further amended--
       (1) by inserting ``(a)'' before ``Whoever'';
       (2) in subsection (a), as so designated--
       (A) by inserting ``or violating section 416,'' after ``to 
     do so,'' the first place it appears; and
       (B) by striking ``shall be fined'' and all that follows and 
     inserting ``shall be imprisoned not less than 10 years nor 
     more than 40 years, and, in addition, may be fined in 
     accordance with title 18, United States Code.''; and
       (3) by adding at the end the following:
       ``(b) Any penalty under subsection (a) for a violation that 
     is also a violation of section 416 shall be in addition to 
     any penalty under section 416 for such violation.''.

[[Page S9090]]

       (c) Nature of Particular Conduct.--That section is further 
     amended by adding at the end the following:
       ``(c) In any case where the conduct at issue is, relates 
     to, or involves the manufacture of amphetamine or 
     methamphetamine, such conduct shall, by itself, be rebuttably 
     presumed to constitute the creation of a substantial risk of 
     harm to human life or the environment within the meaning of 
     subsection (a).''.

     SEC. 9. CRIMINAL PROHIBITION ON DISTRIBUTION OF CERTAIN 
                   INFORMATION RELATING TO THE MANUFACTURE OF 
                   CONTROLLED SUBSTANCES.

       (a) In General.--Part I of title 18, United States Code, is 
     amended by inserting after chapter 21 the following new 
     chapter:

                  ``CHAPTER 22--CONTROLLED SUBSTANCES

``Sec.
``421. Distribution of information relating to manufacture of 
              controlled substances.

     ``Sec. 421. Distribution of information relating to 
       manufacture of controlled substances

       ``(a) Prohibition on Distribution of Information Relating 
     to Manufacture of Controlled Substances.--
       ``(1) Controlled Substance Defined.--In this subsection, 
     the term `controlled substance' has the meaning given that 
     term in section 102(6) of the Controlled Substances Act (21 
     U.S.C. 802(6)).
       ``(2) Prohibition.--It shall be unlawful for any person--
       ``(A) to teach or demonstrate the manufacture of a 
     controlled substance, or to distribute by any means 
     information pertaining to, in whole or in part, the 
     manufacture or use of a controlled substance, with the intent 
     that the teaching, demonstration, or information be used for, 
     or in furtherance of, an activity that constitutes a Federal 
     crime; or
       ``(B) to teach or demonstrate to any person the manufacture 
     of a controlled substance, or to distribute to any person, by 
     any means, information pertaining to, in whole or in part, 
     the manufacture or use of a controlled substance, knowing 
     that such person intends to use the teaching, demonstration, 
     or information for, or in furtherance of, an activity that 
     constitutes a Federal crime.
       ``(b) Penalty.--Any person who violates subsection (a) 
     shall be fined under this title, imprisoned not more than 10 
     years, or both.''.
       (b) Clerical Amendment.--The table of chapters at the 
     beginning of part I of title 18, United States Code, is 
     amended by inserting after the item relating to chapter 21 
     the following new item:

``22. Controlled Substances..................................421''.....

     SEC. 10. NOTICE; CLARIFICATION.

       (a) Notice of Issuance.--Section 3103a of title 18, United 
     States Code, is amended by adding at the end the following 
     new sentence: ``With respect to any issuance under this 
     section or any other provision of law (including section 3117 
     and any rule), any notice required, or that may be required, 
     to be given may be delayed pursuant to the standards, terms, 
     and conditions set forth in section 2705, unless otherwise 
     expressly provided by statute.''.
       (b) Clarification.--(1) Section 2(e) of Public Law 95-78 
     (91 Stat. 320) is amended by adding at the end the following:
     ``Subdivision (d) of such rule, as in effect on this date, is 
     amended by inserting `tangible' before `property' each place 
     it occurs.''.
       (2) The amendment made by paragraph (1) shall take effect 
     on the date of the enactment of this Act.

     SEC. 11. TRAINING FOR DRUG ENFORCEMENT ADMINISTRATION AND 
                   STATE AND LOCAL LAW ENFORCEMENT PERSONNEL 
                   RELATING TO CLANDESTINE LABORATORIES.

       (a) In General.--
       (1) Requirement.--The Administrator of the Drug Enforcement 
     Administration shall carry out the programs described in 
     subsection (b).
       (2) Duration.--The duration of any program under that 
     subsection may not exceed 3 years.
       (b) Covered Programs.--The programs described in this 
     subsection are as follows:
       (1) Advanced mobile clandestine laboratory training 
     teams.--A program of advanced mobile clandestine laboratory 
     training teams, which shall provide information and training 
     to State and local law enforcement personnel in techniques 
     utilized in conducting undercover investigations and 
     conspiracy cases, and other information designed to assist in 
     the investigation of the illegal manufacturing and 
     trafficking of amphetamine and methamphetamine.
       (2) Basic clandestine laboratory certification training.--A 
     program of basic clandestine laboratory certification 
     training, which shall provide information and training--
       (A) to Drug Enforcement Administration personnel and State 
     and local law enforcement personnel for purposes of enabling 
     such personnel to meet any certification requirements under 
     law with respect to the handling of wastes created by illegal 
     amphetamine and methamphetamine laboratories; and
       (B) to State and local law enforcement personnel for 
     purposes of enabling such personnel to provide the 
     information and training covered by subparagraph (A) to other 
     State and local law enforcement personnel.
       (3) Clandestine laboratory recertification and awareness 
     training.--A program of clandestine laboratory 
     recertification and awareness training, which shall provide 
     information and training to State and local law enforcement 
     personnel for purposes of enabling such personnel to provide 
     recertification and awareness training relating to 
     clandestine laboratories to additional State and local law 
     enforcement personnel.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated for each of fiscal years 2000, 2001, and 
     2002 amounts as follows:
       (1) $1,500,000 to carry out the program described in 
     subsection (b)(1).
       (2) $3,000,000 to carry out the program described in 
     subsection (b)(2).
       (3) $1,000,000 to carry out the program described in 
     subsection (b)(3).

     SEC. 12. COMBATTING METHAMPHETAMINE AND AMPHETAMINE IN HIGH 
                   INTENSITY DRUG TRAFFICKING AREAS.

       (a) In General.--
       (1) In general.--The Director of National Drug Control 
     Policy shall use amounts available under this section to 
     combat the trafficking of methamphetamine and amphetamine in 
     areas designated by the Director as high intensity drug 
     trafficking areas.
       (2) Activities.--In meeting the requirement in paragraph 
     (1), the Director shall--
       (A) employ additional Federal law enforcement personnel, or 
     facilitate the employment of additional State and local law 
     enforcement personnel, including agents, investigators, 
     prosecutors, laboratory technicians, and chemists; and
       (B) carry out such other activities as the Director 
     considers appropriate.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section--
       (1) $5,000,000 for fiscal year 2000; and
       (2) such sums as may be necessary for each of fiscal years 
     2001 through 2004.
       (c) Apportionment of Funds.--
       (1) Factors in apportionment.--The Director shall apportion 
     amounts appropriated for a fiscal year pursuant to the 
     authorization of appropriations in subsection (b) for 
     activities under subsection (a) among and within areas 
     designated by the Director as high intensity drug trafficking 
     areas based on the following factors:
       (A) The number of methamphetamine manufacturing facilities 
     and amphetamine manufacturing facilities discovered by 
     Federal, State, or local law enforcement officials in the 
     previous fiscal year.
       (B) The number of methamphetamine prosecutions and 
     amphetamine prosecutions in Federal, State, or local courts 
     in the previous fiscal year.
       (C) The number of methamphetamine arrests and amphetamine 
     arrests by Federal, State, or local law enforcement officials 
     in the previous fiscal year.
       (D) The amounts of methamphetamine, amphetamine, or listed 
     chemicals (as that term is defined in section 102(33) of the 
     Controlled Substances Act (21 U.S.C. 802(33)) seized by 
     Federal, State, or local law enforcement officials in the 
     previous fiscal year.
       (E) Intelligence data from the Drug Enforcement 
     Administration showing trafficking and transportation 
     patterns in methamphetamine, amphetamine, and listed 
     chemicals (as that term is so defined).
       (2) Certification.--Before the Director apportions any 
     funds under this subsection to a high intensity drug 
     trafficking area, the Director shall certify that the law 
     enforcement entities responsible for clandestine 
     methamphetamine and amphetamine laboratory seizures in that 
     area are providing laboratory seizure data to the national 
     clandestine laboratory database at the El Paso Intelligence 
     Center.
       (d) Limitation on Administrative Costs.--Not more than 5 
     percent of the amount appropriated in a fiscal year pursuant 
     to the authorization of appropriations for that fiscal year 
     in subsection (b) may be available in that fiscal year for 
     administrative costs associated with activities under 
     subsection (a).

     SEC. 13. COMBATING AMPHETAMINE AND METHAMPHETAMINE 
                   MANUFACTURING AND TRAFFICKING.

       (a) Activities.--In order to combat the illegal 
     manufacturing and trafficking in amphetamine and 
     methamphetamine, the Administrator of the Drug Enforcement 
     Administration may--
       (1) assist State and local law enforcement in small and 
     mid-sized communities in all phases of investigations related 
     to such manufacturing and trafficking;
       (2) staff additional regional enforcement and mobile 
     enforcement teams related to such manufacturing and 
     trafficking;
       (3) establish additional resident offices and posts of duty 
     to assist State and local law enforcement in rural areas in 
     combating such manufacturing and trafficking;
       (4) provide the Special Operations Division of the 
     Administration with additional agents and staff to collect, 
     evaluate, interpret, and disseminate critical intelligence 
     targeting the command and control operations of major 
     amphetamine and methamphetamine manufacturing and trafficking 
     organizations; and
       (5) carry out such other activities as the Administrator 
     considers appropriate.
       (b) Additional Positions and Personnel.--In carrying out 
     activities under subsection (a), the Administrator may 
     establish in the Administration not more than 50 full-time 
     positions, including not more than

[[Page S9091]]

     31 special-agent positions, and may appoint personnel to such 
     positions.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated for the Drug Enforcement Administration 
     for each fiscal year after fiscal year 1999, $6,500,000 for 
     purposes of carrying out the activities authorized by 
     subsection (a) and employing personnel in positions 
     established under subsection (b).

     SEC. 14. ENVIRONMENTAL HAZARDS ASSOCIATED WITH ILLEGAL 
                   MANUFACTURE OF AMPHETAMINE AND METHAMPHETAMINE.

       (a) Use of Amounts or Department of Justice Assets 
     Forfeiture Fund.--Section 524(c)(1)(E) of title 28, United 
     States Code, is amended--
       (1) by inserting ``(i) for'' before ``disbursements'';
       (2) by inserting ``and'' after the semicolon; and
       (3) by adding at the end the following:
       ``(ii) for payment for--

       ``(I) costs incurred by or on behalf of the Drug 
     Enforcement Administration in connection with the removal of 
     any hazardous substance or pollutant or contaminant 
     associated with the illegal manufacture of amphetamine or 
     methamphetamine; and

       ``(II) costs incurred by or on behalf of a State or local 
     government in connection with such removal in any case in 
     which such State or local government has assisted in a 
     Federal prosecution relating to amphetamine or 
     methamphetamine;''.
       (b) Grants Under Drug Control and System Improvement Grant 
     Program.--Section 501(b)(3) of the Omnibus Crime Control and 
     Safe Streets Act of 1968 is amended by inserting before the 
     semicolon the following: ``and to remove any hazardous 
     substance or pollutant or contaminant associated with the 
     illegal manufacture of amphetamine or methamphetamine''.
       (c) Amounts Supplement and Not Supplant.--
       (1) Assets forfeiture fund.--Any amounts made available 
     from the Department of Justice Assets Forfeiture Fund in a 
     fiscal year by reason of the amendment made by subsection (a) 
     shall supplement, and not supplant, any other amounts made 
     available to the Drug Enforcement Administration in such 
     fiscal year for payment of costs described in section 
     524(c)(1)(E)(ii) of title 28, United States Code, as so 
     amended.
       (2) Grant Program.--Any amounts made available in a fiscal 
     year under the grant program under section 501(b)(3) of the 
     Omnibus Crime Control and Safe Streets Act of 1968 for the 
     removal of hazardous substances or pollutants or contaminants 
     associated with the illegal manufacture of amphetamine or 
     methamphetamine by reason of the amendment made by subsection 
     (b) shall supplement, and not supplant, any other amounts 
     made available in such fiscal year for such removal.

     SEC. 15. ANTIDRUG MESSAGES ON FEDERAL GOVERNMENT INTERNET 
                   WEBSITES.

       Not later than 90 days after the date of the enactment of 
     this Act, the head of each department, agency, and 
     establishment of the Federal Government shall, in 
     consultation with the Director of the Office of National Drug 
     Control Policy, place antidrug messages on appropriate 
     Internet websites controlled by such department, agency, or 
     establishment which messages shall, where appropriate, 
     contain an electronic hyperlink to the Internet website, if 
     any, of the Office.

     SEC. 16. MAIL ORDER REQUIREMENTS.

       Section 310(b)(3) of the Controlled Substances Act (21 
     U.S.C. 830(b)(3)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively;
       (2) by inserting before subparagraph (B), as so 
     redesignated, the following new subparagraph (A):
       ``(A) As used in this paragraph:
       ``(i) The term `drug product' means an active ingredient in 
     dosage form that has been approved or otherwise may be 
     lawfully marketed under the Food, Drug, and Cosmetic Act for 
     distribution in the United States.
       ``(ii) The term `valid prescription' means a prescription 
     which is issued for a legitimate medical purpose by an 
     individual practitioner licensed by law to administer and 
     prescribe the drugs concerned and acting in the usual course 
     of the practitioner's professional practice.'';
       (3) in subparagraph (B), as so redesignated, by inserting 
     ``or who engages in an export transaction'' after 
     ``nonregulated person''; and
       (4) adding at the end the following:
       ``(D) Except as provided in subparagraph (E), the following 
     distributions to a nonregulated person, and the following 
     export transactions, shall not be subject to the reporting 
     requirement in subparagraph (B):
       ``(i) Distributions of sample packages of drug products 
     when such packages contain not more than 2 solid dosage units 
     or the equivalent of 2 dosage units in liquid form, not to 
     exceed 10 milliliters of liquid per package, and not more 
     than one package is distributed to an individual or 
     residential address in any 30-day period.
       ``(ii) Distributions of drug products by retail 
     distributors to the extent that such distributions are 
     consistent with the activities authorized for a retail 
     distributor as specified in section 102(46).
       ``(iii) Distributions of drug products to a resident of a 
     long term care facility (as that term is defined in 
     regulations prescribed by the Attorney General) or 
     distributions of drug products to a long term care facility 
     for dispensing to or for use by a resident of that facility.
       ``(iv) Distributions of drug products pursuant to a valid 
     prescription.
       ``(v) Exports which have been reported to the Attorney 
     General pursuant to section 1004 or 1018 or which are subject 
     to a waiver granted under section 1018(e)(2).
       ``(vi) Any quantity, method, or type of distribution or any 
     quantity, method, or type of distribution of a specific 
     listed chemical (including specific formulations or drug 
     products) or of a group of listed chemicals (including 
     specific formulations or drug products) which the Attorney 
     General has excluded by regulation from such reporting 
     requirement on the basis that such reporting is not necessary 
     for the enforcement of this title or title III.
       ``(E) The Attorney General may revoke any or all of the 
     exemptions listed in subparagraph (D) for an individual 
     regulated person if he finds that drug products distributed 
     by the regulated person are being used in violation of this 
     title or title III. The regulated person shall be notified of 
     the revocation, which will be effective upon receipt by the 
     person of such notice, as provided in section 1018(c)(1), and 
     shall have the right to an expedited hearing as provided in 
     section 1018(c)(2).''.
                                  ____


     Summary of the Methamphetamine Anti-Proliferation Act of 1999

     SEC. 1. SHORT TITLE.

       Methamphetamine Anti-Proliferation Act of 1999

     SEC. 2. MANUFACTURE AND DISTRIBUTION OF AMPHETAMINE AND 
                   METHAMPHETAMINE.

       Section 1 amends title 21 U.S.C. 841(b)(1) to make the 
     statutory punishment for the manufacture and distribution of 
     amphetamine the same as that of methamphetamine.

     SEC. 3. IMPORT AND EXPORT OF AMPHETAMINE AND METHAMPHETAMINE.

       Section 2 amends the Import and Export Act (21 U.S.C. 
     960(b)) to make the statutory punishment for amphetamine the 
     same as that of methamphetamine.

     SEC. 4. SENTENCING GUIDELINES.

       Section 3 amends the Sentencing Guidelines to adjust the 
     penalty for amphetamine to meet the penalty for 
     methamphetamine. It also provides for a 6 level enhancement 
     if the manufacturing either meth or amphetamine created a 
     substantial risk of danger to the health and safety of a 
     minor or incompetent.

     SEC. 5. ADVERTISEMENTS FOR DRUG PARAPHERNALIA AND SCHEDULE I 
                   CONTROLLED SUBSTANCES.

       Section 8 amends 21 U.S.C. 863 (drug paraphernalia statute) 
     to prohibit direct or indirect advertisements for the sale of 
     paraphernalia. It defines advertisements for sale to include 
     the use of any communication facility to post or publicize in 
     any way any matter, including a telephone number or 
     electronic or mail address, knowing that such matter has the 
     purpose of seeking or offering, or is designed to be used, to 
     receive, buy, distribute, or otherwise facilitate a 
     transaction.
       It also amends 21 U.S.C. 843(c) to prohibit direct or 
     indirect advertising for the sale of a Schedule I Controlled 
     Substance. The current statute arguably only prohibited the 
     direct advertising of a schedule I drug in the print media.

     SEC. 6. CONTINUING CRIMINAL ENTERPRISE.

       Section 11 amends the Continuing Criminal Enterprise 
     statute (21 U.S.C. 848) by replacing the phrase ``continuing 
     series of violations of'' with the phrase ``continuing series 
     of 3 or more acts made punishable by.'' This change is in 
     response to the recent Supreme Court case Richardson v.  
     United States (decided June 1, 1999) where the Court held 
     that a jury in a CCE case must unanimously agree not only 
     that the defendant committed some ``continuing series of 
     violations,'' but also about which specific ``violations'' 
     make up that ``continuing series.'' There was previously a 
     split among the circuits (the 4th Circuit and the D.C. 
     Circuit both had ruled unanimity with respect to particular 
     ``violations'' was not required).

     SEC. 7. MANDATORY RESTITUTION FOR METH LAB CLEAN-UP.

       Section 7 makes reimbursement for the costs incurred by the 
     U.S. or State and local governments for the cleanup 
     associated with the manufacture of amphetamine or 
     methamphetamine mandatory. It also provides that the 
     restitution money will go to the Asset Forfeiture Fund 
     instead of the treasury.

     SEC. 8. ENDANGERING HUMAN LIFE OR THE ENVIRONMENT WHILE 
                   ILLEGALLY MANUFACTURING AMPHETAMINE OR 
                   METHAMPHETAMINE.

       Section 8 increases the penalty under 21 U.S.C. 858 to not 
     less than 10 years for manufacturing or trafficking a 
     controlled substance that creates a substantial risk of harm 
     to human life or the environment. It creates a rebuttable 
     presumption that the manufacturing of amphetamine or 
     methamphetamine constitutes the creation of a substantial 
     risk of harm to human life and the environment.

     SEC. 9. CRIMINAL PROHIBITION ON DISTRIBUTION OF CERTAIN 
                   INFORMATION RELATING TO THE MANUFACTURE OF 
                   CONTROLLED SUBSTANCES.

       Section 9 prohibits teaching or demonstrating the 
     manufacture or use of a Controlled Substance or distributing 
     by any means information pertaining to the manufacture or use 
     of a Controlled Substance (1) with the intent that this 
     information be used for, or in furtherance of, an activity 
     that constitutes a federal crime; or (2) knowing

[[Page S9092]]

     that such person intends to use this information for, or in 
     furtherance of, an activity that constitutes a federal crime. 
     The penalty for violation is not more than 10 years in 
     prison.

     SEC. 10. NOTICE; CLARIFICATION.

       This section amends 18 U.S.C. 3103a to allow for the delay 
     of any notice that is, or may be, required pursuant to the 
     issuance of a warrant under this section or any other law.

     SEC. 11. TRAINING FOR DRUG ENFORCEMENT ADMINISTRATION AND 
                   STATE AND LOCAL LAW ENFORCEMENT PERSONNEL 
                   RELATING TO CLANDESTINE LABORATORIES.

       Section 11 authorizes $5.5 million in funding for DEA 
     training programs designed to (1) train State and local law 
     enforcement in techniques used in meth investigations; (2) 
     provide a certification program for State and local law 
     enforcement enabling them to meet requirements with respect 
     to the handling of wastes created by meth labs; (3) create a 
     certification program that enables certain State and local 
     law enforcement to recertify other law enforcement in their 
     regions; and (4) staff mobile training teams which provide 
     State and local law enforcement with advanced training in 
     conducting clan lab investigations and with training that 
     enables them to recertify other law enforcement personnel. 
     The training programs are authorized for 3 years after which 
     the States, either alone or in consultation/combination with 
     other States, will be responsible for training their own 
     personnel. The States will be required to submit a report 
     detailing what measures they are taking to ensure that they 
     have programs in place to take over the responsibility after 
     the three year federal program expires.

     SEC. 12. COMBATING METHAMPHETAMINE IN HIGH INTENSITY DRUG 
                   TRAFFICKING AREAS.

       This section authorizes $5 million a year for fiscal years 
     2000-2004 to be appropriated to ONDCP to combat trafficking 
     of methamphetamine in designated HIDTA's by hiring new 
     federal, State, and local law enforcement personnel, 
     including agents, investigators, prosecutors, lab technicians 
     and chemists. It provides that the funds shall be apportioned 
     among the HIDTA's based on the following factors: (1) number 
     of Meth labs discovered in the previous year; (2) number of 
     Meth prosecutions in the previous year; (3) number of Meth 
     arrests in the previous year; (4) the amounts of Meth seized 
     in the previous year; and (5) intelligence data from the DEA 
     showing trafficking and transportation patterns in 
     methamphetamine, amphetamine and listed chemicals. Before 
     apportioning any funds, the Director must certify that the 
     law enforcement entities responsible for clan lab seizures 
     are providing lab seizure data to the national clandestine 
     laboratory database at the El Paso Intelligence Center. It 
     also provides that not more than five percent of the 
     appropriated amount may be used for administrative costs.

     SEC. 13. COMBATING AMPHETAMINE AND METHAMPHETAMINE 
                   MANUFACTURING AND TRAFFICKING.

       This section authorizes $6.5 million to be appropriated for 
     the hiring of new agents to (1) assist State and local law 
     enforcement in small and mid-sized communities in all phases 
     of drug investigations; (2) staff additional regional 
     enforcement and mobile enforcement teams; (3) establish 
     additional resident offices and posts of duty to assist State 
     and local law enforcement in rural areas; and (4) provide the 
     Special Operations Division with additional agents for 
     intelligence and investigative operations.

     SEC. 14. ENVIRONMENTAL HAZARDS ASSOCIATED WITH ILLEGAL 
                   MANUFACTURE OF AMPHETAMINE AND METHAMPHETAMINE.

       Authorizes the DEA to receive money from the Asset 
     Forfeiture Fund to pay for cleanup costs associated with the 
     illegal manufacture of amphetamine or methamphetamine. It 
     also allows for reimbursements to State and local entities 
     for cleanup costs when they assist in a federal prosecution 
     on amphetamine or methamphetamine related charges.

     SEC. 15. ANTIDRUG MESSAGES ON FEDERAL GOVERNMENT INTERNET 
                   WEBSITES.

       Requires all federal departments and agencies, in 
     consultation with ONDCP, to place antidrug messages on their 
     Internet websites and an electronic hyperlink to ONDCP's 
     website. Numerous government agencies have children's 
     websites, including the Social Security Administration.

     SEC. 16. MAIL ORDER REQUIREMENTS.

       This section represents changes to the reporting 
     requirements of 21 U.S.C. 830(b)(3) worked out between the 
     DEA and industry. Reporting will no longer be required for 
     valid prescriptions, limited distributions of sample 
     packages, distributions by retail distributors if consistent 
     with authorized activities, distributions to long term care 
     facilities, and any product which has been exempted by the 
     AG. It also allows the AG to revoke an exemption if he finds 
     the drug product being distributed is being used in violation 
     of the Controlled Substances Act.

  Mr. BIDEN. Mr. President, 3 years ago this week I joined with my 
distinguished friend and colleague, Senator Hatch, to introduce the 
``Hatch-Biden Methamphetamine Control Act'' to address the growing 
threat of methamphetamine use in our country before it was too late.
  Our failure to foresee and prevent the crack cocaine epidemic is one 
of the most significant public policy mistakes in recent history. 
Despite the warning signs of an outbreak, few took action until it was 
too late. But we did learn an important lesson from that mistake. When 
we began to see similar warning signs with methamphetamine, we acted 
swiftly to make sure that history would not repeat itself.
  That Act provided crucial tools that we needed to stay ahead of the 
methamphetamine epidemic and avoid the mistakes made during the early 
stages of the crack epidemic. We increased penalties for possessing and 
trafficking in methamphetamine and the precursor chemicals and 
equipment used to manufacture the drug. We tightened the reporting 
requirements and restrictions on the legitimate sales of products 
containing precursor chemicals to prevent their diversion, and imposed 
even greater requirements on firms that sell those products by mail. We 
ensured that meth manufacturers who endanger the life of any individual 
or endanger the environment while making this drug receive enhanced 
prison sentences. And finally, we created a national working group of 
law enforcement and public health officials to monitor any growth in 
the methamphetamine epidemic.
  I have no doubt that our 1996 legislation slowed this epidemic 
significantly. But we are up against a powerful and highly addictive 
drug. Meth stimulates the central nervous system, making the user feel 
energetic, clever and powerful. Unlike crack, whose effects sometimes 
last only a matter of minutes, a meth high lasts for hours.
  Last year in my home State of Delaware law enforcement officers 
busted what was described as ``the largest and most sophisticated drug 
lab in the Northeast,'' seizing 50 pounds of meth and meth base. This 
was only one of the 5,786 reported clandestine laboratory seizures in 
the United States last year.
  We have countless heart wrenching stories of violence and families 
being tragically ripped apart by methamphetamine use, sadly reminiscent 
of what we saw with crack cocaine. A recent news story reported that a 
woman in California has been charged with the murder of her infant son. 
High on meth, she left him in a sealed car in the summer heat while she 
and her boyfriend slept in an air-conditioned motel room nearby. The 
innocent infant died a tragic and senseless death.
  Unfortunately, this unspeakable tragedy is not an isolated incident. 
It is not unusual for a meth user to remain awake for days. And as the 
high begins to wane, the user is likely to be violent, delusional and 
paranoid. Not surprisingly, this behavior often leads to crime. In 
areas like San Diego where the meth epidemic rages, more than 33 
percent of people arrested in 1998 tested positive for the drug.
  On top of the violence associated with methamphetamine users, there 
is also the enormous problem of violence among methamphetamine 
traffickers and the environmental and life-threatening conditions 
endemic in the clandestine labs where the drug is produced.
  But perhaps the most frightening fact of all is that despite all of 
the evidence that methamphetamine is a horribly destructive substance, 
the percentage of kids who perceive it as a harmful drug is on the 
decline.
  And that I why I am joining my friend from Utah once again --along 
with Senators DeWine, Feinstein and Bond--to build on the 1996 
methamphetamine legislation and continue to fight this pernicious drug.
  Our Methamphetamine Anti-Proliferation Act, first and foremost, 
addresses the growing problem of amphetamines as a meth substitute by 
making the penalties for manufacturing, importing, exporting or 
trafficking amphetamine equivalent to those established for 
methamphetamine in our 1996 law. The two drugs are nearly identical --
they differ by only one chemical. Whereas methamphetamine is made with 
ephedrine, a substance found in some over-the-counter cold remedies, 
amphetamine is produced with phenylpropanolamine, a chemical found in 
over-the-counter diet pills. The two drugs are produced in the same 
dangerous clandestine labs and are often sold interchangeably on the 
streets; the penalties for dealing in both substances should be the 
same.
  This legislation also provides the Drug Enforcement Administration 
with much needed funding to clean up clandestine labs after they are 
seized

[[Page S9093]]

as well as to train state and local law enforcement officers to handle 
the hazardous wastes produced in the meth labs. Methamphetamine is made 
from an array of hazardous substances--battery acid, lye, ammonia gas, 
hydrochloric acid, just to name a few--that produce toxic fumes and 
often lead to fires or explosions when mixed. I am revealing nothing by 
naming some of these chemical ingredients. Anyone with access to the 
Internet can download a detailed meth recipe with a few simple 
keystrokes. Our legislation would make such postings illegal.
  This bill also tightens the restrictions on direct and indirect 
advertising of illegal drug paraphernalia and Schedule I drugs. Under 
this legislation, it would be illegal for on-line magazines and other 
websites to post advertisements for such illegal material or provide 
``links'' to websites that do. We crafted this language carefully so 
that we restrict the sale of drug paraphernalia without restricting the 
First Amendment.
  Finally, the bill provides more money for law enforcement. This 
includes hiring more Drug Enforcement Administration agents to assist 
state and local law enforcement in small and mid-size cities and rural 
areas and providing more money to combat meth in places designated as 
High Intensity Drug Trafficking Areas.
  While I clearly support the goals of this legislation, I want to make 
it clear that I think we may need to tweak it as it goes through the 
process to ensure that we do not stymie a good idea with the fine 
print. Specifically, I have concerns about how we fund meth lab clean 
up. As written, some of the money would come from the asset forfeiture 
fund, a most important resource for law enforcement. We are now 
struggling with reforming the overall structure of asset forfeiture in 
this country and I would hope we could find an alternative pot of money 
to tap to do the important work of cleaning up meth lab sites.
  That being said, I am confident that any concerns I may have at this 
time will be resolved during the committee process.
  I want to commend Senator Hatch for his continued leadership on this 
issue. I urge all my colleagues to join us in protecting our children 
and our society from the devastations of methamphetamine by supporting 
this vital legislation.

                          ____________________