[Congressional Record Volume 146, Number 52 (Tuesday, May 2, 2000)]
[Senate]
[Pages S3258-S3263]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. LAUTENBERG:
  S. 2493. A bill to amend the Internal Revenue Code of 1986 to deter 
the smuggling of tobacco products into the United States, and for other 
purposes; to the Committee on Finance.


               TOBACCO SMUGGLING ERADICATION ACT OF 2000

  Mr. LAUTENBERG. Mr. President, I rise today to introduce the Tobacco 
Smuggling Eradication Act.
  When Congress last debated tobacco legislation, Big Tobacco raised 
the specter of rampant smuggling to defeat the legislation. Of course, 
the public only found out recently that Big Tobacco itself is a major 
player in the smuggling game. A tobacco company executive recently 
pleaded guilty to money laundering charges in a case involving nearly 
$700 million worth of cigarettes on the Canadian black market. Although 
the company denies knowledge of the scheme, they clearly profited from 
it.
  The best way to address smuggling concerns is to prevent any large-
scale smuggling problem from arising in the first place. The Tobacco 
Smuggling Eradication Act contains several common-sense provisions to 
combat smuggling of tobacco products, and associated tax evasion.
  The bill will require unique serial numbers on all tobacco product 
packages manufactured or imported into the United States, and will 
require all packages bound for export to be marked for export. Under 
current law, export-bound products that re-enter the U.S. too often 
avoid tax assessment, and are sold at discount, in competition with 
products on which taxes have been paid. Likewise, re-imported products 
under current law often evade counting for purposes of the multi-state 
settlement, and thus cheat Americans twice--once in avoidance of tax, 
and again in avoidance of MSA assessment.
  The bill would require retailers to maintain tobacco-related records, 
which may consist simply of ordinary business records. This provision 
would ensure that invoices for tax-paid tobacco products match sales, 
and that the retailer is not an outlet for product on which tax has not 
been paid.
  The bill also would require wholesalers to keep records on the chain 
of custody of tobacco products. This requirement already exists for 
manufacturers, exporters, and importers. This requirement needs to be 
strengthened in order to ensure that product marked for export is not 
diverted back into the domestic market without appropriate taxes having 
been collected.
  In addition, the bill would amend the Contraband Cigarette 
Trafficking Act, which assists states in enforcing and collecting their 
excise taxes, by lowering the threshold of jurisdiction to 30,000 
cigarettes (from 60,000) and expanding it to cover other tobacco 
products. Federal law should ensure that states have the necessary 
tools to stop interstate bootleggers who routinely move tons of tobacco 
products from low-tax states to higher-tax states.
  Mr. President, this is important legislation which would crack down 
on bootleggers and black marketeers. I urge my colleagues to support 
this bill. I ask unanimous consent that the text of the bill be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2493

       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 ``Tobacco Smuggling 
     Eradication Act of 2000''.
          TITLE I--AMENDMENTS TO INTERNAL REVENUE CODE OF 1986

     SEC. 101. AMENDMENT OF 1986 CODE.

       Whenever in this title an amendment or repeal is expressed 
     in terms of an amendment to, or repeal of, a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of the Internal Revenue Code of 
     1986.

     SEC. 102. IMPROVED MARKING AND LABELING.

       (a) In General.--Subsection (b) of section 5723 (relating 
     to marks, labels, and notices) is amended--
       (1) by striking ``, if any,'' and
       (2) by adding at the end the following: ``Such marks, 
     labels, and notices shall include marks and notices relating 
     to the following:
       ``(1) Identification.--The Secretary shall promulgate 
     regulations that require each manufacturer or importer of 
     tobacco products to legibly print a unique serial number on 
     all packages of tobacco products manufactured or imported for 
     sale or distribution. Such serial number shall be designed to 
     enable the Secretary to identify the manufacturer or importer 
     of the product, and the location and date of manufacture or 
     importation. The Secretary shall determine the size and 
     location of the serial number.
       ``(2) Marking requirements for exports.--Each package of a 
     tobacco product that is exported shall be marked for export 
     from the United States. The Secretary shall promulgate 
     regulations to determine the size and location of the mark 
     and under what circumstances a waiver of this paragraph shall 
     be granted.''.
       (b) Sales on Indian Reservations.--Section 5723 is amended 
     by adding at the end the following new subsections:
       ``(f) Sales on Indian Reservations.--The Secretary, in 
     consultation with the Secretary of the Interior, shall 
     promulgate regulations that require that each package of a 
     tobacco product that is sold on an Indian reservation (as 
     defined in section 403(9) of the Indian Child Protection and 
     Family Violence Prevention Act (25 U.S.C. 3202(9)) be labeled 
     as such. Such regulations shall include requirements for the 
     size and location of the label.
       ``(g) Definition of Package.--For purposes of this section, 
     the term `package' means the innermost sealed container 
     irrespective of the material from which such container is 
     made, in which a tobacco product is placed by the 
     manufacturer and in which such tobacco product is offered for 
     sale to a member of the general public.''.

     SEC. 103. WHOLESALERS REQUIRED TO HAVE PERMIT.

       Section 5712 (relating to application for permit) is 
     amended by inserting ``, wholesaler,'' after 
     ``manufacturer''.

     SEC. 104. CONDITIONS OF PERMIT.

       Subsection (a) of section 5713 (relating to issuance of 
     permit) is amended to read as follows:
       ``(a) Issuance.--
       ``(1) In general.--A person shall not engage in business as 
     a manufacturer, wholesaler, or importer of tobacco products 
     or as an export warehouse proprietor without a permit to 
     engage in such business. Such permit shall be issued in such 
     form and in such manner as the Secretary shall by regulation 
     prescribe, to every person properly qualified under sections 
     5711 and 5712. A new permit may be required at such other 
     time as the Secretary shall by regulation prescribe.
       ``(2) Conditions.--The issuance of a permit under this 
     section shall be conditioned upon the compliance with the 
     requirements of this chapter and the Contraband Cigarette 
     Trafficking Act (28 U.S.C. chapter 114), and any regulations 
     issued pursuant to such statutes.''.

     SEC. 105. RECORDS TO BE MAINTAINED.

       Section 5741 (relating to records to be maintained) is 
     amended--
       (1) by inserting ``(a) In General.--'' before ``Every 
     manufacturer'',
       (2) by inserting ``every wholesaler,'' after ``every 
     importer,'',
       (3) by striking ``such records'' and inserting ``records 
     concerning the chain of custody of the tobacco products and 
     such other records'', and
       (4) by adding at the end the following new subsection:
       ``(b) Retailers.--Retailers shall maintain records of 
     receipt of tobacco products, and

[[Page S3259]]

     such records shall be available to the Secretary for 
     inspection and audit. An ordinary commercial record or 
     invoice shall satisfy the requirements of this subsection if 
     such record shows the date of receipt, from whom tobacco 
     products were received, and the quantity of tobacco products 
     received.''.

     SEC. 106. REPORTS.

       Section 5722 (relating to reports) is amended--
       (1) by inserting ``(a) In General.--'' before ``Every 
     manufacturer'', and
       (2) by adding at the end the following new subsection:
       ``(b) Reports By Export Warehouse Proprietors.--
       ``(1) In general.--Prior to exportation of tobacco products 
     from the United States, the export warehouse proprietor shall 
     submit a report (in such manner and form as the Secretary may 
     by regulation prescribe) to enable the Secretary to identify 
     the shipment and assure that it reaches its intended 
     destination.
       ``(2) Agreements with foreign governments.--Notwithstanding 
     section 6103 of this title, the Secretary is authorized to 
     enter into agreements with foreign governments to exchange or 
     share information contained in reports received from export 
     warehouse proprietors of tobacco products if--
       ``(A) the Secretary believes that such agreement will 
     assist in--
       ``(i) ensuring compliance with the provisions of this 
     chapter or regulations promulgated thereunder, or
       ``(ii) preventing or detecting violations of the provisions 
     of this chapter or regulations promulgated thereunder, and
       ``(B) the Secretary obtains assurances from such government 
     that the information will be held in confidence and used only 
     for the purposes specified in clauses (i) and (ii) of 
     subparagraph (A).
     No information may be exchanged or shared with any government 
     that has violated such assurances.''.

     SEC. 107. FRAUDULENT OFFENSES.

       (a) In General.--Subsection (a) of section 5762 (relating 
     to fraudulent offenses) is amended by striking paragraph (1) 
     and redesignating paragraphs (2) through (6) as paragraphs 
     (1) through (5), respectively.
       (b) Offenses Relating to Distribution of Tobacco 
     Products.--Section 5762 is amended--
       (1) by redesignating subsection (b) as subsection (c),
       (2) in subsection (c) (as so redesignated), by inserting 
     ``or (b)'' after ``(a)'', and
       (3) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Offenses Relating to Distribution of Tobacco 
     Products.--It shall be unlawful--
       ``(1) for any person to engage in the business as a 
     manufacturer or importer of tobacco products or cigarette 
     papers and tubes, or to engage in the business as a 
     wholesaler or an export warehouse proprietor, without filing 
     the bond and obtaining the permit where required by this 
     chapter or regulations thereunder;
       ``(2) for an importer, manufacturer, or wholesaler 
     permitted under this chapter intentionally to ship, 
     transport, deliver, or receive any tobacco products from or 
     to any person other than a person permitted under this 
     chapter or a retailer, except a permitted importer may 
     receive foreign tobacco products from a foreign manufacturer 
     or a foreign distributor that have not previously entered the 
     United States;
       ``(3) for any person, except a manufacturer or an export 
     warehouse proprietor permitted under this chapter to receive 
     any tobacco products that have previously been exported and 
     returned to the United States;
       ``(4) for any export warehouse proprietor intentionally to 
     ship, transport, sell, or deliver for sale any tobacco 
     products to any person other than a permitted manufacturer or 
     foreign purchaser;
       ``(5) for any person other than an export warehouse 
     proprietor permitted under this chapter intentionally to 
     ship, transport, receive, or possess, for purposes of resale, 
     any tobacco product in packages marked pursuant to 
     regulations issued under section 5723, other than for direct 
     return to a manufacturer or export warehouse proprietor for 
     repacking or for re-exportation;
       ``(6) for any manufacturer, export warehouse proprietor, 
     importer, or wholesaler permitted under this chapter to make 
     intentionally any false entry in, to fail willfully to make 
     appropriate entry in, or to fail willfully to maintain 
     properly any record or report that such person is required to 
     keep as required by this chapter or the regulations 
     promulgated thereunder; and
       ``(7) for any person to alter, mutilate, destroy, 
     obliterate, or remove any mark or label required under this 
     chapter upon a tobacco product held for sale, except pursuant 
     to regulations of the Secretary authorizing relabeling for 
     purposes of compliance with the requirements of this section 
     or of State law.
     Any person violating any of the provisions of this subsection 
     shall, upon conviction, be fined as provided in section 3571 
     of title 18, United States Code, imprisoned for not more than 
     5 years, or both.''.
       (c) Intentionally Defined.--Section 5762 is amended by 
     adding at the end the following:
       ``(d) Definition of Intentionally.--For purposes of this 
     section and section 5761, the term `intentionally' means 
     doing an act, or omitting to do an act, deliberately, and not 
     due to accident, inadvertence, or mistake, regardless of 
     whether the person knew that the act or omission constituted 
     an offense.''.

     SEC. 108. CIVIL PENALTIES.

       Subsection (a) of section 5761 (relating to civil 
     penalties) is amended--
       (1) by striking ``willfully'' and inserting 
     ``intentionally'', and
       (2) by striking ``$1,000'' and inserting ``$10,000''.

     SEC. 109. DEFINITIONS.

       (a) Export Warehouse Proprietor.--Subsection (j) of section 
     5702 (relating to definition of export warehouse proprietor) 
     is amended by inserting before the period the following: ``or 
     any person engaged in the business of exporting tobacco 
     products from the United States for purposes of sale or 
     distribution. Any duty free store that sells, offers for 
     sale, or otherwise distributes to any person in any single 
     transaction more than 30 packages of cigarettes, or its 
     equivalent for other tobacco products as the Secretary shall 
     by regulation prescribe, shall be deemed an export warehouse 
     proprietor under this chapter''.
       (b) Retailer; Wholesaler.--Section 5702 is amended by 
     adding at the end the following:
       ``(q) Retailer.--The term `retailer' means any dealer who 
     sells, or offers for sale, any tobacco product at retail. The 
     term `retailer' includes any duty-free store that sells, 
     offers for sale, or otherwise distributes at retail in any 
     single transaction 30 or less packages, or its equivalent for 
     other tobacco products.
       ``(r) Wholesaler.--The term `wholesaler' means any person 
     engaged in the business of purchasing tobacco products for 
     resale at wholesale, or any person acting as an agent or 
     broker for any person engaged in the business of purchasing 
     tobacco products for resale at wholesale.''.

     SEC. 110. EFFECTIVE DATE.

       The amendments made by this title shall take effect on 
     January 1, 2000.
    TITLE II--AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING ACT

     SEC. 201. AMENDMENTS TO THE CONTRABAND CIGARETTE TRAFFICKING 
                   ACT.

       (a) Definitions.--Section 2341 of title 18, United States 
     Code, is amended--
       (1) in paragraph (2), by striking ``60,000'' and inserting 
     ``30,000'';
       (2) in paragraph (4), by striking ``and'' at the end;
       (3) in paragraph (5), by striking the period and inserting 
     a semicolon; and
       (4) by adding at the end the following:
       ``(6) the term `tobacco product' means cigars, cigarettes, 
     smokeless tobacco, and pipe tobacco (as such terms are 
     defined in section 5701 of the Internal Revenue Code of 
     1986); and
       ``(7) the term `contraband tobacco product' means a 
     quantity of tobacco product that is equivalent to or more 
     than 30,000 cigarettes as determined by regulation, which 
     bear no evidence of the payment of applicable State tobacco 
     taxes in the State where such tobacco products are found, if 
     such State requires a stamp, impression,or other indication 
     to be placed on packages or other containers of product to 
     evidence payment of tobacco taxes.
       (b) Unlawful Acts.--Section 2342 of title 18, United States 
     Code, is amended--
       (1) in subsection (a), by inserting ``or contraband tobacco 
     products'' before the period;
       (2) by striking subsection (b) and inserting the following:
       ``(b) It shall be unlawful for any person--
       ``(1) knowingly to make any false statement or 
     representation with respect to the information required by 
     this chapter to be kept in the records or reports of any 
     person who ships, sells, or distributes any quantity of 
     cigarettes in excess of 30,000 in a single transaction or 
     tobacco products in such equivalent quantities as shall be 
     determined by regulation, or
       ``(2) knowingly to fail to maintain records or reports, 
     alter or obliterate required markings, or interfere with any 
     inspection, required under this chapter, with respect to such 
     quantity of cigarettes or other tobacco products.''; and
       (3) by adding at the end the following:
       ``(c) It shall be unlawful for any person knowingly to 
     transport tobacco products under a false bill of lading or 
     without any bill of lading.''.
       (c) Recordkeeping.--Section 2343 of title 18, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by inserting after ``transaction'' the following: ``, 
     or, in the case of other tobacco products an equivalent 
     quantity as determined by regulation,'';
       (B) by striking ``60,000'' and inserting ``30,000''; and
       (C) by striking the last sentence and inserting the 
     following: ``Except as provided in subsection (c) of this 
     section, nothing contained herein shall authorize the 
     Secretary to require reporting under this section.'';
       (2) in subsection (b)--
       (A) by striking ``60,000'' and inserting ``30,000''; and
       (B) by inserting after ``transaction'' the following: ``, 
     or, in the case of other tobacco products an equivalent 
     quantity as determined by regulation,''; and
       (3) by adding at the end the following:
       ``(c)(1) Any person who ships, sells, or distributes 
     cigarettes or tobacco products for resale in interstate 
     commerce, whereby such cigarettes or tobacco products are 
     shipped into a State taxing the sale or use of such 
     cigarettes or tobacco products or who advertises or offers 
     cigarettes or tobacco products for such sale or transfer and 
     shipment shall--

[[Page S3260]]

       ``(A) first file with the tobacco tax administrator of the 
     State into which such shipment is made or in which such 
     advertisement or offer is disseminated, a statement setting 
     for the person's name, and trade name (if any), and the 
     address of the person's principal place of business and of 
     any other place of business; and
       ``(B) not later than the 10th of each calendar month, file 
     with the tobacco tax administrator of the State into which 
     such shipment is made a memorandum or a copy of the invoice 
     covering each and every shipment of cigarettes or tobacco 
     products made during the previous calendar month into such 
     State; the memorandum or invoice in each case to include the 
     name and address of the person to whom the shipment was made, 
     the brand, and the quantity thereof.
       ``(2) The fact that any person ships or delivers for 
     shipment any cigarettes or tobacco products shall, if such 
     shipment is into a State in which such person has filed a 
     statement with the tobacco tax administrator under paragraph 
     (1)(A) of this subsection, be presumptive evidence that such 
     cigarettes or tobacco products were sold, shipped, or 
     distributed for resale by such person.
       ``(3) For purposes of this subsection--
       ``(A) the term `use' in addition to its ordinary meaning, 
     means consumption, storage, handling, or disposal of 
     cigarettes or tobacco products; and
       ``(B) the term `tobacco tax administrator' means the State 
     official authorized to administer tobacco tax laws of the 
     State.''.
       (d) Penalties.--Section 2344 of title 18, United States 
     Code, is amended--
       (1) in subsection (b), by inserting ``or (c)'' after 
     ``section 2342(b)''; and
       (2) in subsection (c), by inserting ``or contraband tobacco 
     products'' after ``cigarettes''.
       (e) State Jurisdiction Not Affected.--Section 2345 of title 
     18, United States Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``or tobacco product'' after 
     ``cigarette''; and
       (B) by inserting ``, tobacco products,'' after 
     ``cigarettes''; and
       (2) in subsection (b)--
       (A) by inserting ``or tobacco product'' after 
     ``cigarette''; and
       (B) by inserting ``, tobacco products,'' after 
     ``cigarettes''.
       (f) Repeal.--The Act entitled ``An Act to assist States in 
     collecting sales and use taxes on cigarettes'', approved 
     October 19, 1949 (15 U.S.C. 375 et seq.) is repealed.
       (g) Civil Forfeiture.--Section 981(a)(1)(C) of title 18, 
     United States Code, is amended by striking ``or 1344'' and 
     inserting ``1344, or 2344''.
                                 ______
                                 
      By Mr. ROCKEFELLER:
  S. 2494. A bill to amend title 38, United States Code, to provide 
compensation and benefits to children of female Vietnam veterans who 
were born with certain birth defects, and for other purposes; to the 
Committee on Veterans' Affairs.


       children of female vietnam veterans' benefits act of 2000

  Mr. ROCKEFELLER. Mr. President, I introduce, on behalf of myself and 
Senator Murray, legislation that would aid the children born with birth 
defects to female Vietnam veterans. This legislation, the Children of 
Female Vietnam Veterans' Benefits Act of 2000, is long overdue. As we 
commemorate the 25th anniversary of the end of the war, it is a 
particularly appropriate time for passage of this important 
legislation.
  Women played a critical role in Vietnam. As nurses, they provided 
lifesaving care to the wounded and comfort to the dying. Their 
compassion and selflessness is legendary. Others served in countless 
other ways, as clerks, mapmakers, photographers, air traffic 
controllers, Red Cross and USO workers, and other volunteer roles. 
Their support was crucial to the war effort.
  Last year, the VA completed study on women Vietnam veterans which 
concluded that there was a ``statistically significant increase in 
birth defects'' in their children. VA generally does not have the legal 
authority to provide health care and compensation to the children of 
veterans, except in the case of spina bifida.
  The legislation we are sponsoring would apply to children of women 
Vietnam veterans born with birth defects, other than spina bifida, 
which resulted in permanent physical or mental disability, except for 
certain birth defects determined by the Secretary of Veterans Affairs 
to result from genetics, birth injury, or fetal or neonatal infirmities 
with well-established causes. The benefits would include health care, 
vocational rehabilitation services, and financial compensation, 
depending on the degree of disability.
  In closing, I emphasize that the health care and benefits provided by 
the Department of Veterans Affairs play a crucial role in supporting 
the healing process I spoke of earlier. While no amount of remuneration 
can ever truly compensate for bodily injury and emotional trauma, we 
have the responsibility to provide the tools for coping and to ease the 
difficulties of daily life. I urge my colleagues to support this 
measure.
  This bill will provide health care and compensation to the children 
of women Vietnam veterans who were born with permanently disabling 
birth defects. Though they have waited 25 years for this 
acknowledgment, this legislation has the ability to significantly 
improve the lives of women veterans and their disabled children. These 
women and children have endured incredible and ongoing hardships for 
this country, and their significance must be realized. We can no longer 
ignore the responsibility the government owes to women veterans.
  This bill has its origin in a study the Department of Veterans 
Affairs did on women Vietnam veterans. In response to the concerns of 
many women Vietnam Veterans, Congress required that VA perform a 
comprehensive study of any long-term adverse health effects that may 
have been suffered by these women. This mandate led to three separate 
but related epidemiologic studies of women Vietnam-era veterans: 1) a 
post Vietnam service mortality follow-up; 2) an assessment of 
psychologic health outcomes; and 3) a review of reproductive health 
outcomes. This particular study, released in 1999, analyzed the 
reproductive outcomes of over 4000 women Vietnam veterans, compared 
with 4000 women Vietnam-era veterans.
  The study revealed that the risk of a woman Vietnam veterans having a 
child with birth defects was significantly elevated, even after 
adjusting for age, demographic variables, military characteristics, and 
smoking and alcohol consumption of the mothers. Upon review of the 
resulting conclusions, the VA study's task force recommended that the 
Secretary seek statutory authority to provide health care and other 
benefits to the offspring of women veterans with birth defects. 
Secretary West approved of this recommendation. The tragic realization 
of the birth defects present in so many of the children of women 
Vietnam veterans brings light to a situation that cries out not only 
for our sympathy, but for an acceptance of governmental responsibility 
and action.
  VA does not have the authority under current law to provide health 
care or other benefits to the children of women Vietnam veterans 
disabled from birth defects other than spina bifida. Thus, the enabling 
legislation that I introduce today is absolutely necessary in order to 
address the compelling needs of these children.
  Currently, VA has the authority to compensate and aid veterans, and 
the dependents of these veterans, for disease or injury to the veteran 
due to service. Millions of veterans, from every branch of the Armed 
Forces, have been helped by this benefit. These small amounts of 
compensation can in no way fully redress the physical and psychological 
injuries that war has caused these veterans, their children, and their 
spouses. But it does serve to assist these veterans to live active and 
fulfilled lives, and it would assist with making up for lost income 
over the years, due to the injuries. However, no benefits have been 
extended to the children of veterans, for their own harm.
  In 1996, VA was given special authority to provide benefits and 
compensation to the children of Vietnam veterans for their own disease 
associated with their parent's service--for those children born with 
spina bifida. The legislation I am introducing today is modeled after 
that ground breaking spina bifida legislation. We owe that same debt to 
the children born with birth defects to women Vietnam veterans. My 
cosponsors and I believe that providing this assistance to children 
disabled by birth defects associated with their mother's military 
service would be a fitting extension of the principle of providing 
benefits for disabilities that are incurred or aggravated as a result 
of service on active duty in the Armed Forces of the United States.
  I am seeking to aid the children of women Vietnam veterans who have 
been tragically affected by birth defects. These women fought for their 
country, and served this Nation with honor and courage. They 
volunteered to be placed in harm's way, without knowledge of what 
effects their service may bring later. Many were nurses who cared for 
wounded soldiers, and offered enormously important support services to 
all those in active duty. Indeed, these women provided such an 
incredible nursing service to injured soldiers that less than 2% of all 
treated casualties during the war died. These women saw death and 
disease, and they experienced their own forms of disillusionment with 
the war. These women

[[Page S3261]]

fought on the front lines; they were not kept away in safe places 
during the conflict.
  Further, I want to add that these women performed a service for women 
who have been in any way involved in the Armed Forces since then, by 
contributing to the changes in the military structure of the 1970s and 
since. Women performed critically important roles during the Vietnam 
war. Their ongoing contributions were recognized as altogether 
essential. Disastrously, some of their children have suffered because 
their mothers were so courageous, and it is time for them to begin to 
be repaid for that suffering.
  Though long overdue perhaps, now is a particularly appropriate time 
for passage of this important legislation. As we celebrate the 25th 
anniversary of the end of the Vietnam War, we must remember the women 
Vietnam veterans who served this country so well, all those years ago. 
These women paid for their service not only with their own bodies, but 
too often with the bodies of their children who were born years later. 
It is my opinion that this legislation is late in coming, but there is 
no time like the present. As we take these recent months to remember 
the Vietnam War, I can think of no more fitting time than this for this 
bill. After all, though the fighting in Vietnam came to an end 25 years 
ago, the consequences of that fighting are still dramatically present.

  At the heart of this legislation, this bill would apply to children 
of women Vietnam veterans born with birth defects, other than spina 
bifida, which resulted in permanent physical or mental disability, 
except for birth defects determined by the Secretary of Veterans' 
Affairs to result from familial disorders, birth-related injuries, or 
fetal or neonatal infirmities with well-established causes.
  The legislation authorizes VA to provide or reimburse a contractor 
for health care delivered to the disabled children for the birth defect 
and associated conditions. This health care would include home, 
hospital, nursing home, outpatient, preventative, habilitative, 
rehabilitative and respite care. It also includes pharmaceuticals and 
supplies required by the birth defect, such as wheelchairs, if 
appropriate.
  The legislation also provides compensation from the VA to the 
children at four payment levels. The benefits would be for $100, $214, 
$743, and $1,272, per month, depending upon the severity of the child's 
disability. Future cost-of-living adjustments would be based on the 
Consumer Price Index, just as other veterans and Social Security 
benefits are adjusted.
  This bill also authorizes VA to furnish the disabled children with 
important vocational rehabilitation services. The services would 
include: VA design of a training plan that is individually designed, 
accounting for the individual needs of the child; placement and post-
placement services, personal and work adjustment training. It may also 
include education at an institution of higher learning. The programs 
would generally run 24 months, but if necessary, the Secretary may 
extend the program for an additional 24 months.
  This legislation would be effective one year after the date of 
enactment, in order to allow time for regulations to be established. VA 
estimates that the costs for this legislation would be approximately 
$25 million over five years.
  In conclusion, I believe that we must help the children born with 
disabling birth defects associated with their mother's service in 
Vietnam. It is the logical extension of our policy to provide benefits 
for disabilities that result from service. It's the compassionate thing 
to do--to ensure that these children have the health care and other 
benefits they need to survive. As a nation, it is our unwavering 
responsibility to deal with all the consequences of war, not just the 
easy and obvious ones.
  Mr. President, I ask unanimous consent that the bill fact sheet be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2494

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Children of Female Vietnam 
     Veterans' Benefits Act of 2000''.

     SEC. 2. BENEFITS FOR THE CHILDREN OF FEMALE VIETNAM VETERANS 
                   WHO SUFFER FROM CERTAIN BIRTH DEFECTS.

       (a) In General.--Chapter 18 of title 38, United States 
     Code, is amended by adding at the end the following new 
     subchapter:

``SUBCHAPTER II--CHILDREN OF FEMALE VIETNAM VETERANS BORN WITH CERTAIN 
                             BIRTH DEFECTS

     ``Sec. 1811. Definitions

       ``In this subchapter:
       ``(1) The term `child', with respect to a female Vietnam 
     veteran, means a natural child of the female Vietnam veteran, 
     regardless of age or marital status, who was conceived after 
     the date on which the female Vietnam veteran first entered 
     the Republic of Vietnam during the Vietnam era (as specified 
     in section 101(29)(A) of this title).
       ``(2) The term `covered birth defect' means each birth 
     defect identified by the Secretary under section 1812 of this 
     title.
       ``(3) The term `female Vietnam veteran' means any female 
     individual who performed active military, naval, or air 
     service in the Republic of Vietnam during the Vietnam era (as 
     so specified), without regard to the characterization of the 
     individual's service.

     ``Sec. 1812. Birth defects covered

       ``(a) Identification.--Subject to subsection (b), the 
     Secretary shall identify the birth defects of children of 
     female Vietnam veterans that--
       ``(1) are associated with the service of female Vietnam 
     veterans in the Republic of Vietnam during the Vietnam era 
     (as specified in section 101(29)(A) of this title); and
       ``(2) result in the permanent physical or mental disability 
     of such children.
       ``(b) Limitations.--(1) The birth defects identified under 
     subsection (a) may not include birth defects resulting from 
     the following:
       ``(A) A familial disorder.
       ``(B) A birth-related injury.
       ``(C) A fetal or neonatal infirmity with well-established 
     causes.
       ``(2) The birth defects identified under subsection (a) may 
     not include spina bifida.
       ``(c) List.--The Secretary shall prescribe in regulations a 
     list of the birth defects identified under subsection (a).

     ``Sec. 1813. Benefits and assistance

       ``(a) Health Care.--(1) The Secretary shall provide a child 
     of a female Vietnam veteran who was born with a covered birth 
     defect such health care as the Secretary determines is needed 
     by the child for such birth defect or any disability that is 
     associated with such birth defect.
       ``(2) The Secretary may provide health care under this 
     subsection directly or by contract or other arrangement with 
     a health care provider.
       ``(3) For purposes of this subsection, the definitions in 
     section 1803(c) of this title shall apply with respect to the 
     provision of health care under this subsection, except that 
     for such purposes--
       ``(A) the reference to `specialized spina bifida clinic' in 
     paragraph (2) of such section 1803(c) shall treated as a 
     reference to a specialized clinic treating the birth defect 
     concerned under this subsection; and
       ``(B) the reference to `vocational training under section 
     1804 of this title' in paragraph (8) of such section 1803(c) 
     shall be treated as a reference to vocational training under 
     subsection (b).
       ``(b) Vocational Training.--(1) The Secretary may provide a 
     program of vocational training to a child of a female Vietnam 
     veteran who was born with a covered birth defect if the 
     Secretary determines that the achievement of a vocational 
     goal by the child is reasonably feasible.
       ``(2) Subsections (b) through (e) of section 1804 of this 
     title shall apply with respect to any program of vocational 
     training provided under paragraph (1).
       ``(c) Monetary Allowance.--(1) The Secretary shall pay a 
     monthly allowance to any child of a female Vietnam veteran 
     who was born with a covered birth defect for any disability 
     resulting from such birth defect.
       ``(2) The amount of the monthly allowance paid under this 
     subsection shall be based on the degree of disability 
     suffered by the child concerned, as determined in accordance 
     with a schedule for rating disabilities resulting from 
     covered birth defects that is prescribed by the Secretary.
       ``(3) In prescribing a schedule for rating disabilities 
     under paragraph (2), the Secretary shall establish four 
     levels of disability upon which the amount of the monthly 
     allowance under this subsection shall be based.
       ``(4) The amount of the monthly allowance paid under this 
     subsection shall be as follows:
       ``(A) In the case of a child suffering from the lowest 
     level of disability prescribed in the schedule for rating 
     disabilities under this subsection, $100.
       ``(B) In the case of a child suffering from the lower 
     intermediate level of disability prescribed in the schedule 
     for rating disabilities under this subsection, the greater 
     of--
       ``(i) $214; or
       ``(ii) the monthly amount payable under section 1805(b)(3) 
     of this title for the lowest level of disability prescribed 
     for purposes of that section.
       ``(C) In the case of a child suffering from the higher 
     intermediate level of disability prescribed in the schedule 
     for rating disabilities under this subsection, the greater 
     of--
       ``(i) $743; or

[[Page S3262]]

       ``(ii) the monthly amount payable under section 1805(b)(3) 
     of this title for the intermediate level of disability 
     prescribed for purposes of that section.
       ``(D) In the case of a child suffering from the highest 
     level of disability prescribed in the schedule for rating 
     disabilities under this subsection, the greater of--
       ``(i) $1,272; or
       ``(ii) the monthly amount payable under section 1805(b)(3) 
     of this title for the highest level of disability prescribed 
     for purposes of that section.
       ``(5) Amounts under subparagraphs (A), (B)(i), (C)(i), and 
     (D)(i) of paragraph (4) shall be subject to adjustment from 
     time to time under section 5312 of this title.
       ``(6) Subsections (c) and (d) of section 1805 of this title 
     shall apply with respect to any monthly allowance paid under 
     this subsection.
       ``(d) General Limitations on Availability of Benefits and 
     Assistance.--(1) No individual receiving benefits or 
     assistance under this section may receive any benefits or 
     assistance under subchapter I of this chapter.
       ``(2) In any case where affirmative evidence establishes 
     that the covered birth defect of a child results from a cause 
     other than the active military, naval, or air service in the 
     Republic of Vietnam of the female Vietnam veteran who is the 
     mother of the child, no benefits or assistance may be 
     provided the child under this section.
       ``(e) Regulations.--The Secretary shall prescribe 
     regulations for purposes of the administration of the 
     provisions of this section.''.
       (b) Administrative Provisions.--That chapter is further 
     amended by inserting after subchapter II, as added by 
     subsection (a) of this section, the following new subchapter:

                ``SUBCHAPTER III--ADMINISTRATIVE MATTERS

     ``Sec. 1821. Applicability of certain administrative 
       provisions

       ``The provisions of sections 5101(c), 5110(a), (b)(2), (g), 
     and (i), 5111, and 5112(a), (b)(1), (b)(6), (b)(9), and 
     (b)(10) of this title shall apply with respect to benefits 
     and assistance under this chapter in the same manner as such 
     provisions apply to veterans' disability compensation.

     ``Sec. 1822. Treatment of receipt of monetary allowance on 
       other benefits

       ``(a) Notwithstanding any other provision of law, receipt 
     by an individual of a monetary allowance under this chapter 
     shall not impair, infringe, or otherwise affect the right of 
     the individual to receive any other benefit to which the 
     individual is otherwise entitled under any law administered 
     by the Secretary.
       ``(b) Notwithstanding any other provision of law, receipt 
     by an individual of a monetary allowance under this chapter 
     shall not impair, infringe, or otherwise affect the right of 
     any other individual to receive any benefit to which such 
     other individual is entitled under any law administered by 
     the Secretary based on the relationship of such other 
     individual to the individual who receives such monetary 
     allowance.
       ``(c) Notwithstanding any other provision of law, a 
     monetary allowance paid an individual under this chapter 
     shall not be considered as income or resources in determining 
     eligibility for or the amount of benefits under any Federal 
     or Federally-assisted program.''.
       (c) Repeal of Superseded Matter.--Section 1806 of title 38, 
     United States Code, is repealed.
       (d) Redesignation of Existing Matter.--Chapter 18 of that 
     title is further amended by inserting before section 1801 the 
     following:

 ``SUBCHAPTER I--CHILDREN OF VIETNAM VETERANS BORN WITH SPINA BIFIDA''.

       (e) Conforming Amendments.--(1) Sections 1801 and 1802 of 
     that title are each amended by striking ``this chapter'' and 
     inserting ``this subchapter''.
       (2) Section 1805(a) of such title is amended by striking 
     ``this chapter'' and inserting ``this section''.
       (e) Clerical Amendments.--(1)(A) The chapter heading of 
     chapter 18 of that title is amended to read as follows:

       ``CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS''.

       (B) The tables of chapters at beginning of that title, and 
     at the beginning of part II of that title, are each amended 
     by striking the item relating to chapter 18 and inserting the 
     following new item:

``18. Benefits for Children of Vietnam Veterans.............1801''.....

       (2) The table of sections at the beginning of chapter 18 of 
     that title is amended--
       (A) by inserting after the chapter heading the following:

 ``SUBCHAPTER I--CHILDREN OF VIETNAM VETERANS BORN WITH SPINA BIFIDA'';

       (B) by striking the item relating to section 1806; and
       (C) by adding at the end the following:

``SUBCHAPTER II--CHILDREN OF FEMALE VIETNAM VETERANS BORN WITH CERTAIN 
                             BIRTH DEFECTS

``1811. Definitions.
``1812. Birth defects covered.
``1813. Benefits and assistance.

                ``SUBCHAPTER III--ADMINISTRATIVE MATTERS

``1821. Applicability of certain administrative provisions.
``1822. Treatment of receipt of monetary allowance on other 
              benefits.''.
       (f) Applicability.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect on 
     the first day of the first month beginning more than one year 
     after the date of the enactment of this Act.
       (2) The Secretary of Veterans Affairs shall identify birth 
     defects under section 1822 of title 38, United States Code 
     (as added by subsection (a) of this section), and shall 
     prescribe the regulations required by subchapter II of that 
     title (as so added), not later than the effective date 
     specified in paragraph (1).
       (3) No benefit or assistance may be provided under 
     subchapter II of chapter 18 of title 38, United States Code 
     (as so added), for any period before the effective date 
     specified in paragraph (1) by reason of the amendments made 
     by this section.
                                  ____


                               Fact Sheet


                               Background

       In 1999, VA released an epidemiological study on women 
     Vietnam veterans which found a ``statistically significant 
     increase in birth defects'' in the children of women Vietnam 
     veterans, particularly moderate to severe birth defects. The 
     reproductive outcomes of over 4,000 Vietnam women veterans 
     were compared with 4,000 Vietnam-era women veterans.
       VA currently has authority to compensate veterans and 
     dependents for disease or injury of the veteran due to 
     service. VA was given special authority in 1996, to provide 
     benefits to children of Vietnam veterans for their own 
     disease resulting from their parent's service--for those 
     children born with spina bifida


                              Legislation

       This bill would apply to women Vietnam veterans' children 
     born with birth defects (other than spina bifida) which 
     result in permanent physical or mental disability, except for 
     birth defects determined by the Secretary of VA to result 
     from familial disorders, birth-related injuries, or fetal or 
     neonatal infirmities with well-established causes.
       This bill is modeled after the 1996 spina bifida 
     legislation.
       It authorizes VA to provide or reimburse a contractor for 
     health care delivered to the disabled children for the birth 
     defect and associated conditions. This health care would 
     include home, hospital, nursing home, outpatient, 
     preventative, habilitative, rehabilitative and respite care. 
     It also includes pharmaceuticals and supplies required by the 
     birth defect, such as wheel chairs, if appropriate.
       It provides compensation from the VA to the children at 
     four payment levels. The benefits would be for $100, $214, 
     $743, and $1,272, depending upon the severity of the 
     disability. Future cost of living adjustments would be 
     indexed and based on the Consumer Price Index, just as other 
     veterans' and Social Security benefits are adjusted.
       This bill also authorizes VA to furnish the disabled 
     children with vocational rehabilitation services. The 
     services would include: VA provision of a training plan that 
     is individually designed, accounting for the individual needs 
     of the child; placement and post-placement services; and 
     personal and work adjustment training. It may also include 
     education at an institution of higher learning. The programs 
     will generally run 24 months, but if necessary, the Secretary 
     may extend the program for an additional 24 months.
       The legislation would be effective one year after the date 
     of enactment, in order to allow time for regulations to be 
     established.
       VA estimates that the costs for this legislation would be 
     approximately $25 million over five years.
                                 ______
                                 

       By Mr. MOYNIHAN (for himself, Mr. Cochran, and Mr. Frist):

  S. 2498. A bill to authorize the Smithsonian Institution to plan, 
design, construct, and equip laboratory, administrative, and support 
space to house base operations for the Smithsonian Astrophysical 
Observatory Submillimeter Array located on Mauna Kea at Hilo, Hawaii; 
to the Committee on Rules and Administration.


  legislation to authorize the smithsonian institution to construct a 
                     base facility in hilo, hawaii

 Mr. MOYNIHAN. Mr. President, I am pleased to introduce today, 
with Senator Cochran and Senator Frist, legislation to authorize the 
construction of a base facility structure in Hilo, Hawaii, to house the 
staff and laboratory operations of the Smithsonian Astrophysical 
Observatory's Submillimeter Array (SMA) atop the summit of the ancient 
volcano Mauna Kea.

  The advanced SMA is an array of eight moveable radio telescope 
antennas. Its combined images can produce high-resolution detail 50 
times sharper than those achieved by any telescopes currently making 
observations at these wavelengths. Ultimately, this telescope array 
will be used to study a host of astronomical objects and phenomena 
emitting images in the submillimeter

[[Page S3263]]

range, the narrow band of radiation between radio and infrared waves, a 
portion of the electromagnetic spectrum largely unexplored from the 
ground. Using the latest technology, the array will be able to probe 
the murky clouds of the Milky Way where stars are born, peer into the 
hearts of exploding galaxies, study cool faint objects of our own Solar 
System, and explore other great questions in astronomy, gaining insight 
into the processes and cataclysmic forces involved in the ultimate 
formation and evolution of stars, planets and galaxies.
  Like the innovative Chandra X-ray Observatory, which is now sending 
back stunning images from space, essentially all of the Submillimeter 
Array's equipment was designed and prototyped at the Smithsonian 
Astrophysical Observatory's facilities in Cambridge, Massachusetts. 
And, just as the Smithsonian collaborates with NASA on the 
groundbreaking Chandra project, it collaborates with the Institute of 
Astronomy and Astrophysics of the Academia Sinica of Taiwan on the 
advanced SMA.
  On September 29, 1999, by tracking and observing 230 gigahertz (230 
billion cycles per second) of radiation from Mars, Venus, Saturn, and 
Jupiter, SMA scientists made their first test observation--thereby 
achieving the submillimeter equivalent of ``first light''--and took a 
critical step in the ultimate success of this project. This is but yet 
another milestone in the history of the Smithsonian Astrophysical 
Observatory (SAO). Founded in 1890 by Secretary Samuel Langley as a 
center for ``the new astronomy,'' where one might study the physical 
nature of astronomical bodies as well as their positions and motions, 
SAO pioneered studies of the relationship between the solar and 
terrestrial phenomena. In the earliest days of the Space Age, SAO 
established and operated a worldwide network of satellite-tracking 
stations, including one on the island of Maui, and developed 
experiments for some of the first orbiting space observatories. Today, 
SAO, the Smithsonian unit with the largest budget, is headquartered--in 
a partnership with Harvard University--in Cambridge, Massachusetts. At 
that facility more than 300 scientists are engaged in a broad program 
of astronomy, astrophysics, and earth and space sciences supported by 
Federal appropriations, Smithsonian trust funds, Harvard University 
funds, and contracts and grants. In addition to the Submillimeter Array 
in Hawaii, SAO maintains a major data-gathering facility at the Whipple 
Observatory near Tucson, Arizona and operates the Oak Ridge Observatory 
in Massachusetts.
  The legislation I am introducing today authorizes the Smithsonian to 
plan, design, construct, and equip approximately 16,000 square feet of 
laboratory, administrative, and support space at the base of Mauna Kea, 
replacing inadequate, temporary leased space. It further authorizes an 
appropriation of $2,000,000 in fiscal year 2001 and $2,500,000 in 
fiscal year 2002. This is a very modest investment to ensure the 
continuation of the scientific achievement and research excellence that 
have been a tradition at the Smithsonian Astrophysical Observatory for 
110 years.
  I urge the speedy passage of this legislation and ask unanimous 
consent that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2498

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

     SECTION 1. FACILITY AUTHORIZED.

       The Board of Regents of the Smithsonian Institution is 
     authorized to plan, design, construct, and equip laboratory, 
     administrative, and support space to house base operations 
     for the Smithsonian Astrophysical Observatory Submillimeter 
     Array located on Mauna Kea at Hilo, Hawaii.

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Board of 
     Regents of the Smithsonian Institution to carry out this Act, 
     $2,000,000 for fiscal year 2001, and $2,500,000 for fiscal 
     year 2002, which shall remain available until 
     expended.

 Mr. COCHRAN. Mr. President, I am pleased to join my colleague, 
the Senator from New York (Mr. Moynihan) and fellow Smithsonian 
Institution Board Regent in introducing the legislation authorizing a 
permanent base facility structure at Hilo, Hawaii for the Smithsonian 
Astrophysical Observatory Submillimeter Array.
  The Submillimeter Array is part of the world-class web of major data-
gathering facilities of the Smithsonian Astrophysical Observatory. 
Other facilities are located in Arizona and its headquarters in 
Massachusetts. Together these facilities support some of the world's 
most advanced studies and discoveries in astronomy, astrophysics, earth 
and space science.
  This legislation will authorize the planning, design, construction 
and outfitting of the necessary laboratory and other operational space 
for the array of radio telescope antennas installed atop the ancient 
volcano, Mauna Kea. Funding is authorized in the amount of $2,000,000 
for Fiscal Year 2001 and $2,500,000 for Fiscal Year 2002. The new base 
station will replace a current system of rented, overcrowded space 
shared with astrophysical operations of other organizations and 
countries.
  Mr. President, I am proud of the Smithsonian Astrophysical 
Observatory 110-year history and its reputation around the world. Its 
work and discoveries are considered to be some of the most significant 
of the Twentieth Century. From the first orbiting space observatories 
to the newest images of our galaxy, the Smithsonian Astrophysical 
Observatory has worked independently and collaborated with the National 
Aeronautics and Space Administration to explore and explain the wonders 
of the universe.
  I hope the Senate will work quickly to pass this legislation so the 
work of the Submillimeter Array can proceed.

                          ____________________