[Congressional Record Volume 146, Number 54 (Thursday, May 4, 2000)]
[Senate]
[Pages S3514-S3543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DASCHLE (for himself and Mr. Lugar):
  S. 2503. A bill to amend the Clean Air Act to authorize States to 
regulate harmful fuel additives and to require fuel to contain fuel 
made from renewable sources, to amend the Solid Waste Disposal Act to 
require that at least 85 percent of funds appropriated to the 
Environmental Protection Agency from the Leaking Underground Storage 
Tank Trust Fund be distributed to States to carry out cooperative 
agreements for undertaking corrective action and for enforcement of 
subtitle I of that act, and for other purposes; to the Committee on 
Environment and Public Works.


                      renewable fuels act of 2000

  Mr. DASCHLE. Mr. President, ten years ago I joined with two 
distinguished colleagues, then-Senate Majority Leader Bob Dole and 
Senator Tom Harkin, to introduce the reformulated gasoline (RFG) 
provision of the 1990 Clean Air Act Amendments. The RFG provision, with 
its minimum oxygen standard, was adopted in the Senate by the 
overwhelming vote of 69 to 30 and eventually signed into law by 
President George Bush.
  I am proud to say that this program has resulted in substantial 
improvement in air quality around the country. It also has stimulated 
increased production and use of renewable ethanol and other oxygenates 
needed to meet the minimum oxygen standard.
  Unfortunately, an unanticipated development involving the petroleum-
based oxygenate MTBE requires us to re-examine the many benefits of the 
RFG program. The detection of MTBE in ground water around the country 
has generated considerable debate in recent months over how to deal 
with this fuel additive and the oxygen requirement of the reformulated 
gasoline program. The resolution of this debate will have significant 
consequences for the environment, for farmers and for the rural 
economy.
  The pace of activity to resolve the MTBE issue is accelerating 
rapidly. Battlelines are being drawn as the state of California and its 
allies focus on scrapping the oxygen requirement.
  It is clear that Congress and/or the Clinton administration will 
respond to the MTBE problem. My focus is on ensuring that that response 
not only serves the environment, but also retains a prominent place for 
ethanol--a place that assures long-term, predictable growth of the 
industry.
  I believe a comprehensive legislative solution is necessary in this 
case--one that recognizes and preserves the important air quality 
benefits of the RFG program, protects water supplies and leads the 
nation away from greater dependence on imported oil.
  I have worked for the last year with the ethanol industry, Republican 
and Democratic colleagues in the Senate, the Governor's Ethanol 
Coalition, environmental organizations and the administration in search 
of a solution that gives states the tools they need to address MTBE 
contamination, ensures the future growth of domestic renewable fuels, 
and prevents supply shortages and price spikes in the nation's fuels 
supply.
  This process has led me to two basic conclusions.
  First, the MTBE crisis has left the RFG oxygen requirement vulnerable 
to legislative attack. Those who doubt this conclusion should reflect 
on the following facts.
  California refiners have shown that clean-burning gasoline can be 
produced without oxygen.
  EPA's Blue Ribbon Panel has recommended that the oxygen requirement 
be repealed.
  The RFG oxygen requirement is opposed by a diverse coalition that 
includes the American Lung Association, the American Petroleum 
Institute, the New England States Coordinated Air Use Management 
agency, the State of California and the Natural Resources Defense 
Council (NRDC).
  Second, support for the oxygen requirement will weaken over time. 
Improvements in auto emissions control technology will cause the air 
quality benefits of oxygen in gasoline to decline and the justification 
for the RFG oxygen requirement to diminish.
  As one of the original authors of the reformulated gasoline 
provisions of the Clean Air Act, I feel something of a proprietary 
interest in the oxygen requirement. As a legislator, I recognize that 
circumstances change, and obstinacy should not be allowed to become a 
barrier to the achievement of important policy goals.
  Ethanol advocates face a choice between defending the oxygen 
requirement in the near term, realizing that its days ultimately are 
numbered, or using the current MTBE debate to guarantee the future 
growth of the ethanol industry based on important public policy goals, 
such as energy security, greenhouse gas emissions reductions, and 
domestic economic growth.
  In my judgment, providing states with the flexibility to waive the 
RFG oxygen requirement is a fair tradeoff for the establishment of a 
renewable fuels standard. It represents the most effective way to 
achieve the environmental and economic goals of governors and 
consumers, while putting the ethanol industry on a steady growth path 
well into the future and promoting ethanol production in new regions of 
the nation.
  Therefore, today, with Senator Richard Lugar, I am introducing the 
Renewable Fuels Act of 2000. Under our

[[Page S3515]]

legislation, EPA is directed to reduce the use of MTBE to safe levels, 
and states can obtain waivers from the RFG oxygen requirement and 
further regulate MTBE if they desire. This will allow the nation to 
deal with the MTBE contamination issue responsibly and avoid gasoline 
supply disruptions. The bill also includes provisions protecting the 
air quality gains that have resulted from the use of oxygenated fuels.
  To protect market opportunities for renewable fuels, the bill 
establishes a renewable fuels standard for the nation's gasoline, which 
begins in 2000 at 1.3 percent--roughly where renewable fuels production 
stands today--and gradually increases over the next decade to 3.3 
percent of the nation's gasoline in 2010. Considering the fact that 
overall gasoline use is expected to increase over the next decade, this 
standard will more than triple ethanol use over that period.
  In meeting that requirement, our legislation stipulates that a gallon 
of biomass ethanol counts as much as 1.5 gallons of starch-based 
ethanol, thereby providing a strong incentive for the development of 
biomass-based ethanol plans throughout the country. It also established 
a renewable fuels standard for diesel fuels to promote the use of 
biodiesel. These renewable fuels standards can be met through 
nationwide credit trading, to allow for the most economomical use of 
ethanol and biodiesel.
  For those who are concerned about the potential impact of a drought 
or other natural disaster on the ability of the renewable fuels 
industry to supply this market, the legislation allows the EPA 
Administrator, in consultation with the Secretary of Agriculture, to 
waive the renewable requirement in any given year upon determination 
that there is indequate domestic supply or distribution capacity, or 
that the requirement would severely harm the economic or environment of 
a State, a region, or the United States.
  I also intend to work with my colleagues on both sides of the aisle 
to establish a strategic corn reserve as a complement to the renewable 
fuel standard. A properly managed strategic corn reserve could serve as 
the equivalent of the strategic petroleum reserve and ensure stable 
feedstocks for domestic ethanol producers in the event of weather 
induced supply interruptions. Taxpayers would benefit as farmers could 
receive fair market prices, thereby reducing the need for emergency 
assistance each year.

  It is important to recognize that under Senator Lugar's and my 
approach, the oxygen requirement is not waived entirely. States can 
decide for themselves whether to apply for a waiver from the RFG oxygen 
requirement. We fully expect that RFG programs that currently are using 
ethanol and have not experienced MTBE contamination, such as Chicago 
and Milwaukee, will stay in the program. Moreover, the bill allows any 
governor to apply to EPA to opt into the RFG program, thus expanding 
its air quality benefits to new regions of the country. Those areas 
that remain in the program or opt into it, and use ethanol, will 
generate credits that can be sold to other regions of the country.
  Finally, the bill prevents adverse effects on states' highway trust 
fund tax allocations, with ``hold harmless'' language ensuring that 
states reporting Federal excise tax receipts on gasoline are not 
penalized for their ethanol blend sales.
  Again, my goal in introducing this legislation is both to support 
states that want to get MTBE out of gasoline and to ensure that this 
effort does not adversely affect ethanol production. It is also to put 
into place a program that will grow the ethanol industry steadily over 
the next decade, thereby assuring the market stability necessary to 
attract investment in the construction of new plants and significantly 
increasing the market for corn and biomass. This approach not only will 
get MTBE out of groundwater; it will do so without backsliding on the 
air quality improvements generated by the RFG program while increasing 
corn demand by 600 million bushels per year.
  Mr. President, since first floating this concept in May of last year, 
I have heard from numerous stakeholders in this complex debate. The 
legislative concept that Senator Lugar and I unveil today has been 
endorsed by diverse interests ranging from the American Coalition for 
Ethanol (ACE) in Sioux Falls, South Dakota, to the 24-state Governors' 
Ethanol Coalition, to the Northeast States for Coordinated Air Use 
Management (NESCAUM) to Mr. Leo Leibowitz, chairman of Getty Petroleum. 
I believe that we have struck a delicate balance between the interests 
of farmers, consumers, state regulatory officials, refiners and those 
concerned about the environment. This plan is a worthy successor to the 
original 1990 RFG provision, preserving all of the good things it has 
achieved and rectifying those elements that need fixing.
  I look forward to working with Senators Smith and Baucus, the 
chairman and ranking member of the Senate Environment and Public Works 
Committee, to enact legislation resolving the MTBE issue. I hope that 
other colleagues will join Senator Lugar and me in support of this 
legislation.
  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. 2503

       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 ``Renewable Fuels Act of 
     2000''.

     SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT 
                   USE OF MTBE.

       Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is 
     amended--
       (1) in paragraph (1)(A), by striking ``any emission product 
     of such fuel or fuel additive causes, or contributes, to air 
     pollution which may reasonably be anticipated to endanger the 
     public health or welfare,'' and inserting ``the fuel or fuel 
     additive, or an emission product of the fuel or fuel 
     additive, causes or contributes to air, water, or soil 
     pollution that may reasonably be anticipated to endanger the 
     public health or welfare or the environment,'';
       (2) in paragraph (2)(C), by inserting ``or have other 
     environmental impacts'' after ``emissions'';
       (3) in paragraph (4)--
       (A) in subparagraph (A), by redesignating clauses (i) and 
     (ii) as subclauses (I) and (II), respectively, and indenting 
     appropriately to reflect the amendments made by this 
     paragraph;
       (B) by striking ``(4)(A) Except as otherwise provided in 
     subparagraph (B) or (C),'' and inserting the following:
       ``(4) Limitation on state authority with respect to fuels 
     and fuel additives.--
       ``(A) In general.--
       ``(i) Fuels and fuel additives.--Except as otherwise 
     provided in subparagraph (B) or (C) or paragraph (5),'';
       (C) in subparagraph (A)--
       (i) in clause (i) (as designated by subparagraph (B)), by 
     inserting ``or water or soil quality protection'' after 
     ``emission control''; and
       (ii) by adding at the end the following:
       ``(ii) MTBE.--Notwithstanding clause (i), except as 
     otherwise provided in subparagraph (B) or (C) or paragraph 
     (5), no State (or political subdivision of a State) may 
     prescribe or attempt to enforce, for the purpose of motor 
     vehicle emission control or water or soil quality protection, 
     any control or prohibition on methyl tertiary butyl ether as 
     a fuel additive in a motor vehicle or motor vehicle 
     engine.'';
       (D) in subparagraph (B), by inserting ``or water or soil 
     quality protection'' after ``emission control''; and
       (E) in subparagraph (C)--
       (i) in the first sentence--

       (I) by inserting ``or water or soil quality protection'' 
     after ``emission control''; and
       (II) by inserting before the period at the end the 
     following: ``or, if the Administrator grants a petition of 
     the State under paragraph (5)''; and

       (ii) in the second sentence, by striking ``only if he'' and 
     inserting ``if the Administrator''; and
       (4) by adding at the end the following:
       ``(5) State petitions for authority to control or prohibit 
     use of fuels or fuel additives for non-air quality 
     purposes.--
       ``(A) In general.--A State seeking to prescribe and enforce 
     a control or prohibition on a fuel or fuel additive for the 
     purpose of water or soil quality protection under paragraph 
     (4)(C) shall submit a petition to the Administrator for 
     authority to take such action.
       ``(B) Required elements of petition.--A petition submitted 
     under subparagraph (A) shall--
       ``(i) include information on--

       ``(I) the likely effects of the control or prohibition on 
     fuel availability and price in the affected supply area or 
     region; and
       ``(II) the improvements in environmental quality or public 
     health or welfare expected to result from the control or 
     prohibition; and

       ``(ii) demonstrate that the authority is necessary to 
     protect the environment or public health or welfare.

[[Page S3516]]

       ``(C) Action by the administrator.--Not later than 180 days 
     after the date of receipt of a petition submitted under 
     subparagraph (A), the Administrator shall grant or deny the 
     petition.
       ``(D) Criteria for granting of petitions.--The 
     Administrator shall grant a petition submitted by a State 
     under subparagraph (A) unless the Administrator finds that--
       ``(i) the petition fails to reasonably demonstrate that the 
     authority is necessary to protect the environment or public 
     health or welfare;
       ``(ii) the control or prohibition is likely to have a 
     substantial and significant adverse effect on fuel 
     availability or price (including a State or regional effect) 
     that clearly outweighs any benefits associated with the 
     control or prohibition; or
       ``(iii) in the case of a petition submitted by a State 
     seeking the authority primarily to protect water resources, 
     the State has failed to take other appropriate and reasonable 
     actions to prevent contamination of water resources by fuels 
     or fuel additives, such as--

       ``(I) adoption of a prohibition on the delivery of gasoline 
     to noncompliant facilities with underground storage tanks; or
       ``(II) operation of a statewide monitoring and compliance 
     assurance system.

       ``(E) Effect of failure of administrator to act.--If, by 
     the date that is 180 days after the date of receipt of a 
     petition submitted under subparagraph (A), the Administrator 
     has not proposed to grant or deny the petition under 
     subparagraph (C), the petition shall be deemed to be granted.
       ``(F) Procedural requirements.--
       ``(i) Inapplicability of certain requirements.--Section 
     307(d) of this Act and sections 553 through 557 of title 5, 
     United States Code, shall not apply to actions on a petition 
     submitted under subparagraph (A).
       ``(ii) Public notice and opportunity for comment.--The 
     Administrator shall provide public notice and opportunity for 
     comment with respect to a petition submitted under 
     subparagraph (A).
       ``(6) Limitation on mtbe content.--The Administrator shall 
     promulgate regulations applicable to each refiner, blender, 
     or importer of gasoline to ensure that gasoline sold or 
     introduced into commerce by the refiner, blender, or importer 
     on or after January 1, 2004, in an area has a content of 
     methyl tertiary butyl ether that is at a level that--
       ``(A) the Administrator determines may not reasonably be 
     anticipated to endanger natural resources and the public 
     health; and
       ``(B) does not exceed the annual average volume of methyl 
     tertiary butyl ether per gallon of gasoline used in the area 
     before 1995.''.

     SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT.

       (a) In General.--Section 211(k) of the Clean Air Act (42 
     U.S.C. 7545(k)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``Within 1 year after the enactment of the 
     Clean Air Act Amendments of 1990,'' and inserting the 
     following:
       ``(A) In general.--Not later than November 15, 1991,'';
       (B) in the first sentence, by inserting before the period 
     at the end the following: ``and opt-in areas under paragraph 
     (6)''; and
       (C) by adding at the end the following:
       ``(B) Adjustment of voc performance standard.--
       ``(i) In general.--The Administrator may adjust the 
     volatile organic compounds performance standard promulgated 
     under subparagraph (A) in the case of a fuel formulation that 
     achieves reductions in the quantity of mass emissions of 
     carbon monoxide that are greater than or less than the 
     reductions associated with a reformulated gasoline that 
     contains 2.0 percent oxygen by weight and otherwise meets the 
     requirements of this subsection.
       ``(ii) Amount of adjustment.--The amount of an adjustment 
     under clause (i) shall be based on the effect on ozone 
     concentrations of the combined reductions in emissions of 
     volatile organic compounds and reductions in emissions of 
     carbon monoxide.'';
       (2) in paragraph (2)--
       (A) in subparagraph (B)--
       (i) by striking ``The oxygen'' and inserting the following:
       ``(i) In general.--The oxygen''; and
       (ii) by adding at the end the following:
       ``(ii) Waiver for certain states.--The Administrator shall 
     waive the application of clause (i) for any ozone 
     nonattainment area in a State if the Governor of the State 
     submits for such a waiver an application that--

       ``(I) demonstrates that the State is in full compliance 
     with Federal regulations concerning the control and 
     prevention of leaking underground storage tanks; or
       ``(II) provides a plan that outlines the measures the State 
     will take to fully comply with the underground storage tank 
     regulations by a date not later than 2 years after the 
     receipt of the application of the Governor.

       ``(iii) Effective date.--A waiver under clause (ii) shall 
     become effective on the later of--

       ``(I) January 1 of the calendar year immediately following 
     the calendar year during which the application for the waiver 
     is received; or
       ``(II) the date that is 180 days after the date on which 
     the application for the waiver is received.''; and

       (B) by adding at the end the following:
       ``(E) Aromatics.--The aromatic hydrocarbon content of the 
     gasoline shall not exceed 22 percent by volume.'';
       (3) in paragraph (3)--
       (A) in subparagraph (A)(ii), by striking ``25 percent'' and 
     inserting ``22 percent''; and
       (B) in subparagraph (B)--
       (i) by striking ``Any reduction'' and inserting the 
     following:
       ``(iii) Treatment of greater reductions.--Any reduction''; 
     and
       (ii) by adding at the end the following:
       ``(iv) Anti-backsliding provision.--

       ``(I) In general.--Not later than June 1, 2000, the 
     Administrator shall revise performance standards under this 
     subparagraph as necessary to ensure that--

       ``(aa) the ozone-forming potential, taking into account all 
     ozone precursors (including volatile organic compounds, 
     oxides of nitrogen, and carbon monoxide), of the aggregate 
     emissions during the high ozone season (as determined by the 
     Administrator) from baseline vehicles when using reformulated 
     gasoline does not exceed the ozone-forming potential of the 
     aggregate emissions during the high ozone season from 
     baseline vehicles when using reformulated gasoline that 
     complies with the regulations that were in effect on January 
     1, 2000, and were applicable to reformulated gasoline sold in 
     calendar year 2000 and subsequent calendar years; and
       ``(bb) the aggregate emissions of the pollutants specified 
     in subclause (II) from baseline vehicles when using 
     reformulated gasoline do not exceed the aggregate emissions 
     of those pollutants from baseline vehicles when using 
     reformulated gasoline that complies with the regulations that 
     were in effect on January 1, 2000, and were applicable to 
     reformulated gasolines sold in calendar year 2000 and 
     subsequent calendar years.

       ``(II) Specified pollutants.--The pollutants specified in 
     this subclause are--

       ``(aa) toxics, categorized by degrees of toxicity; and
       ``(bb) such other pollutants, including pollutants 
     regulated under section 108, and such precursors to those 
     pollutants, as the Administrator determines by regulation 
     should be controlled to prevent the deterioration of air 
     quality and to achieve attainment of a national ambient air 
     quality standard in 1 or more areas.''; and
       (4) in paragraph (4)(B)--
       (A) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively, and indenting appropriately to 
     reflect the amendments made by this paragraph;
       (B) by striking ``The Administrator'' and inserting the 
     following:
       ``(i) In general.--The Administrator'';
       (C) in clause (i) (as designated by subparagraph (B))--
       (i) in subclause (I) (as redesignated by subparagraph (A)), 
     by striking ``, and'' and inserting a semicolon;
       (ii) in subclause (II) (as redesignated by subparagraph 
     (A))--

       (I) by striking ``achieve equivalent'' and inserting the 
     following: ``achieve--

       ``(aa) equivalent'';

       (II) by striking the period at the end and inserting ``; 
     or''; and
       (III) by adding at the end the following:

       ``(bb) combined reductions in emissions of ozone forming 
     volatile organic compounds and carbon monoxide that result in 
     a reduction in ozone concentration, as provided in clause 
     (ii)(I), that is equivalent to or greater than the reduction 
     in ozone concentration achieved by a reformulated gasoline 
     meeting the applicable requirements of paragraph (3); and''; 
     and
       (iii) by adding at the end the following:

       ``(III) achieve equivalent or greater reductions in 
     emissions of toxic air pollutants than are achieved by a 
     reformulated gasoline meeting the applicable requirements of 
     paragraph (3).''; and

       (D) by adding at the end the following:
       ``(ii) Carbon monoxide credit.--

       ``(I) In general.--In determining whether a fuel 
     formulation or slate of fuel formulations achieves combined 
     reductions in emissions of ozone forming volatile organic 
     compounds and carbon monoxide that result in a reduction in 
     ozone concentration that is equivalent to or greater than the 
     reduction in ozone concentration achieved by a reformulated 
     gasoline meeting the applicable requirements of paragraph 
     (3), the Administrator--

       ``(aa) shall consider, to the extent appropriate, the 
     change in carbon monoxide emissions from baseline vehicles 
     attributable to an oxygen content in the fuel formulation or 
     slate of fuel formulations that exceeds 2.0 percent by 
     weight; and
       ``(bb) may consider, to the extent appropriate, the change 
     in carbon monoxide emissions described in item (aa) from 
     vehicles other than baseline vehicles.

       ``(II) Oxygen credits.--Any excess oxygen content that is 
     taken into consideration in making a determination under 
     subclause (I) may not be used to generate credits under 
     paragraph (7)(A).
       ``(III) Relation to title i.--Any fuel formulation or slate 
     of fuel formulations that is certified as equivalent or 
     greater under this subparagraph, taking into consideration 
     the combined reductions in emissions of volatile organic 
     compounds and carbon monoxide, shall receive the same 
     volatile organic compounds reduction credit for the purposes 
     of subsections (b)(1) and (c)(2)(B) of section 182 as a fuel 
     meeting the applicable requirements of paragraph (3).''.

       (b) Reformulated Gasoline Carbon Monoxide Reduction 
     Credit.--Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C.

[[Page S3517]]

     7511a(c)(2)(B)) is amended by adding at the end the 
     following: ``An adjustment to the volatile organic compound 
     emission reduction requirements under section 
     211(k)(3)(B)(iv) shall be credited toward the requirement for 
     VOC emissions reductions under this subparagraph.''.

     SEC. 4. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE 
                   PROGRAM.

       Section 211(k)(6) of the Clean Air Act (42 U.S.C. 
     7545(k)(6)) is amended--
       (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
     inserting the following:
       ``(6) Opt-in areas.--
       ``(A) Classified areas.--
       ``(i) In general.--Upon'';
       (2) in subparagraph (B), by striking ``(B) If'' and 
     inserting the following:
       ``(ii) Effect of insufficient domestic capacity to produce 
     reformulated gasoline.--If'';
       (3) in subparagraph (A)(ii) (as so redesignated)--
       (A) in the first sentence, by striking ``subparagraph (A)'' 
     and inserting ``clause (i)''; and
       (B) in the second sentence, by striking ``this paragraph'' 
     and inserting ``this subparagraph''; and
       (4) by adding at the end the following:
       ``(B) Nonclassified areas.--
       ``(i) In general.--Upon the application of the Governor of 
     a State, the Administrator shall apply the prohibition 
     specified in paragraph (5) in any area in the State that is 
     not a covered area or an area referred to in subparagraph 
     (A)(i).
       ``(ii) Publication of application.--As soon as practicable 
     after receipt of an application under clause (i), the 
     Administrator shall publish the application in the Federal 
     Register.''.

     SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS.

       (a) In General.--Section 211 of the Clean Air Act (42 
     U.S.C. 7545) is amended--
       (1) by redesignating subsection (o) as subsection (q); and
       (2) by inserting after subsection (n) the following:
       ``(o) Renewable Content of Gasoline.--
       ``(1) In general.--
       ``(A) Regulations.--Not later than September 1, 2000, the 
     Administrator shall promulgate regulations applicable to each 
     refiner, blender, or importer of gasoline to ensure that 
     gasoline sold or introduced into commerce in the United 
     States by the refiner, blender, or importer complies with the 
     renewable content requirements of this subsection.
       ``(B) Renewable content requirements.--
       ``(i) In general.--All gasoline sold or introduced into 
     commerce in the United States by a refiner, blender, or 
     importer shall contain, on a quarterly average basis, a 
     quantity of fuel derived from a renewable source (including 
     biomass ethanol) that is not less than the applicable 
     percentage by volume for the quarter.
       ``(ii) Biomass ethanol.--For the purposes of clause (i), 1 
     gallon of biomass ethanol shall be considered to be the 
     equivalent of 1.5 gallons of fuel derived from a renewable 
     source.
       ``(iii) Applicable percentage.--For the purposes of clause 
     (i), the applicable percentage for a quarter of a calendar 
     year shall be determined in accordance with the following 
     table:

         Applicable percentage of fuel derived from a renewable source:
`Calendar year:
  2000.........................................................1.3 ....

  2001.........................................................1.5 ....

  2002.........................................................1.7 ....

  2003.........................................................1.9 ....

  2004.........................................................2.1 ....

  2005.........................................................2.3 ....

  2006.........................................................2.5 ....

  2007.........................................................2.7 ....

  2008.........................................................2.9 ....

  2009.........................................................3.1 ....

  2010 and thereafter..........................................3.3.....

       ``(C) Fuel derived from a renewable source.--For the 
     purposes of this subsection, a fuel shall be considered to be 
     derived from a renewable source if the fuel--
       ``(i) is produced from grain, starch, oilseeds, or other 
     biomass; and
       ``(ii) is used to replace or reduce the quantity of fossil 
     fuel present in a fuel mixture used to operate a motor 
     vehicle.
       ``(D) Biomass ethanol.--For the purposes of this 
     subsection, a fuel shall be considered to be biomass ethanol 
     if the fuel is ethanol derived from any lignocellulosic or 
     hemicellulosic matter that is available on a renewable or 
     recurring basis, including--
       ``(i) dedicated energy crops and trees;
       ``(ii) wood and wood residues;
       ``(iii) plants;
       ``(iv) grasses;
       ``(v) agricultural commodities and residues;
       ``(vi) fibers;
       ``(vii) animal wastes and other waste materials; and
       ``(viii) municipal solid waste.
       ``(E) Credit program.--
       ``(i) In general.--The regulations promulgated under this 
     subsection shall provide for the generation of an appropriate 
     amount of credits by a person that refines, blends, or 
     imports gasoline that contains, on a quarterly average basis, 
     a quantity of fuel derived from a renewable source or a 
     quantity of biomass ethanol that is greater than the quantity 
     required under subparagraph (B).
       ``(ii) Use of credits.--The regulations shall provide that 
     a person that generates the credits may use the credits, or 
     transfer all or a portion of the credits to another person, 
     for the purpose of complying with subparagraph (B).
       ``(2) Waivers.--
       ``(A) In general.--The Administrator, in consultation with 
     the Secretary of Agriculture, may waive the requirements of 
     paragraph (1)(B) in whole or in part on petition by a State--
       ``(i) based on a determination by the Administrator, after 
     public notice and opportunity for comment, that 
     implementation of the requirements would severely harm the 
     economy or environment of a State, a region, or the United 
     States; or
       ``(ii) based on a determination by the Administrator, after 
     public notice and opportunity for comment, that there is an 
     inadequate domestic supply or distribution capacity to meet 
     the requirements of paragraph (1)(B).
       ``(B) Petitions for waivers.--The Administrator, in 
     consultation with the Secretary of Agriculture--
       ``(i) shall approve or deny a State petition for a waiver 
     of the requirements of paragraph (1)(B) within 180 days after 
     the date on which the petition is received; but
       ``(ii) may extend that period for up to 60 additional days 
     to provide for public notice and opportunity for comment and 
     for consideration of the comments submitted.
       ``(C) Termination of waivers.--A waiver granted under 
     subparagraph (A) shall terminate after 1 year, but may be 
     renewed by the Administrator after consultation with the 
     Secretary of Agriculture.
       ``(D) Oxygen content waivers.--The grant or denial of a 
     waiver under subsection (k)(2)(B) shall not affect the 
     requirements of this subsection.
       ``(3) Small refiners.--The regulations promulgated by the 
     Administrator under paragraph (1) may provide an exemption, 
     in whole or in part, for small refiners (as defined by the 
     Administrator).
       ``(4) Guidance for labeling.--After consultation with the 
     Secretary of Agriculture, the Administrator shall issue 
     guidance to the States for labeling, at the point of retail 
     sale--
       ``(A) the fuel derived from a renewable source that is 
     contained in the fuel sold; and
       ``(B) the major fuel additive components of the fuel sold.
       ``(5) Reports to congress.--Not less often than every 3 
     years, the Administrator shall submit to Congress a report 
     on--
       ``(A) reductions in emissions of criteria air pollutants 
     listed under section 108 that result from implementation of 
     this subsection; and
       ``(B) in consultation with the Secretary of Energy, 
     greenhouse gas emission reductions that result from 
     implementation of this subsection.
       ``(p) Renewable Content of Diesel Fuel.--
       ``(1) In general.--Not later than September 1, 2000, the 
     Administrator, after consideration of applicable economic and 
     environmental factors, shall promulgate regulations 
     applicable to each refiner, blender, or importer of diesel 
     fuel to ensure that the diesel fuel sold or introduced into 
     commerce in the United States by the refiner, blender, or 
     importer complies with the renewable content requirements 
     established by the Administrator under this subsection.
       ``(2) Elements of program.--To the extent that the 
     Administrator determines it to be appropriate, the 
     Administrator shall by regulation establish a program for 
     diesel fuel that has renewable content requirements similar 
     to the requirements of the program for gasoline under 
     subsection (o) in order to ensure the use of biodiesel 
     fuel.''.
       (b) Penalties and Enforcement.--Section 211(d) of the Clean 
     Air Act (42 U.S.C. 7545(d)) is amended--
       (1) in paragraph (1)--
       (A) in the first sentence, by striking ``or (n)'' each 
     place it appears and inserting ``(n), or (o)''; and
       (B) in the second sentence, by striking ``or (m)'' and 
     inserting ``(m), or (o)''; and
       (2) in the first sentence of paragraph (2), by striking 
     ``and (n)'' each place it appears and inserting ``(n), and 
     (o)''.
       (c) Prevention of Effects on Highway Apportionments.--
       (1) Surface transportation program.--Section 104(b)(3) of 
     title 23, United States Code, is amended by adding at the end 
     the following:
       ``(C) Determination of estimated tax payments.--For the 
     purpose of determining under subparagraph (A)(iii) the 
     estimated tax payments attributable to highway users in a 
     State paid into the Highway Trust Fund (other than the Mass 
     Transit Account) in a fiscal year, the amount paid into the 
     Highway Trust Fund with respect to the sale of gasohol or 
     other fuels containing alcohol by reason of the tax imposed 
     by section 4041 (relating to special fuels) or 4081 (relating 
     to gasoline) of the Internal Revenue Code of 1986 shall be 
     treated as being equal to the amount that would have been so 
     imposed with respect to that sale without regard to the 
     reduction in revenues resulting from the application of the 
     regulations promulgated under section 211(o) of the Clean Air 
     Act (42 U.S.C. 7545(o)) and the following provisions of the 
     Internal Revenue Code of 1986:

[[Page S3518]]

       ``(i) Section 4041(b)(2) (relating to exemption for 
     qualified methanol and ethanol fuel).
       ``(ii) Section 4041(k) (relating to fuels containing 
     alcohol).
       ``(iii) Section 4041(m) (relating to certain alcohol 
     fuels).
       ``(iv) Section 4081(c) (relating to reduced rate on 
     gasoline mixed with alcohol).''.
       (2) Minimum guarantee.--Section 105(f)(1) of title 23, 
     United States Code, is amended--
       (A) by striking ``(1) In general.--Before'' and inserting 
     the following: ``(1) In general.--
       ``(A) Adjustment.--Before''; and
       (B) by adding at the end the following:
       ``(B) Determination of estimated tax payments.--For the 
     purpose of determining under this subsection the estimated 
     tax payments attributable to highway users in a State paid 
     into the Highway Trust Fund (other than the Mass Transit 
     Account) in a fiscal year, the amount paid into the Highway 
     Trust Fund with respect to the sale of gasohol or other fuels 
     containing alcohol by reason of the tax imposed by section 
     4041 (relating to special fuels) or 4081 (relating to 
     gasoline) of the Internal Revenue Code of 1986 shall be 
     treated as being equal to the amount that would have been so 
     imposed with respect to that sale without regard to the 
     reduction in revenues resulting from the application of the 
     regulations promulgated under section 211(o) of the Clean Air 
     Act (42 U.S.C. 7545(o)) and the following provisions of the 
     Internal Revenue Code of 1986:
       ``(i) Section 4041(b)(2) (relating to exemption for 
     qualified methanol and ethanol fuel).
       ``(ii) Section 4041(k) (relating to fuels containing 
     alcohol).
       ``(iii) Section 4041(m) (relating to certain alcohol 
     fuels).
       ``(iv) Section 4081(c) (relating to reduced rate on 
     gasoline mixed with alcohol).''.

     SEC. 6. UPDATING OF BASELINE YEAR.

       (a) In General.--Section 211(k) of the Clean Air Act (42 
     U.S.C. 7545(k)) is amended--
       (1) in paragraph (8)--
       (A) in subparagraph (A)--
       (i) in the first sentence, by striking ``Within 1 year 
     after the enactment of the Clean Air Act Amendments of 1990, 
     the'' and inserting ``The''; and
       (ii) by striking the second sentence;
       (B) by striking ``calendar year 1990'' each place it 
     appears and inserting ``calendar year 1999''; and
       (C) in subparagraph (E), by striking ``such 1990 gasoline'' 
     and inserting ``such 1999 gasoline''; and
       (2) in subparagraphs (A) and (B)(ii) of paragraph (10), by 
     striking ``1990'' each place it appears and inserting 
     ``1999''.
       (b) Regulations.--As soon as practicable after the date of 
     enactment of this Act, the Administrator of the Environmental 
     Protection Agency shall revise the regulations promulgated 
     under section 211(k) of the Clean Air Act (42 U.S.C. 7545(k)) 
     to reflect the amendments made by subsection (a).

     SEC. 7. LEAKING UNDERGROUND STORAGE TANKS.

       (a) Trust Fund Distribution.--Section 9004 of the Solid 
     Waste Disposal Act (42 U.S.C. 6991c) is amended by adding at 
     the end the following:
       ``(f) Trust Fund Distribution.--
       ``(1) In general.--
       ``(A) Amount and permitted use of distribution.--The 
     Administrator shall distribute to States at least 85 percent 
     of the funds appropriated to the Environmental Protection 
     Agency from the Leaking Underground Storage Tank Trust Fund 
     established by section 9508 of the Internal Revenue Code of 
     1986 (referred to in this subsection as the `Trust Fund') for 
     each fiscal year for use in paying the reasonable costs, 
     incurred under cooperative agreements with States, of--
       ``(i) actions taken by a State under section 9003(h)(7)(A);
       ``(ii) necessary administrative expenses directly related 
     to corrective action and compensation programs under 
     subsection (c)(1);
       ``(iii) enforcement by a State or local government of a 
     State program approved under this section or of State or 
     local requirements regulating underground storage tanks that 
     are similar or identical to this subtitle;
       ``(iv) State or local corrective actions pursuant to 
     regulations promulgated under section 9003(c)(4); or
       ``(v) corrective action and compensation programs under 
     subsection (c)(1) for releases from underground storage tanks 
     regulated under this subtitle if, as determined by the State 
     in accordance with guidelines developed between the 
     Environmental Protection Agency and the States, the financial 
     resources of an owner or operator (including resources 
     provided by programs under subsection (c)(1)) are not 
     adequate to pay for the cost of a corrective action without 
     significantly impairing the ability of the owner or operator 
     to continue in business.
       ``(B) Nonpermitted uses.--Funds provided by the 
     Administrator under subparagraph (A) shall not be used by a 
     State to provide financial assistance to an owner or operator 
     to meet the requirements concerning underground storage tanks 
     contained in part 280 of title 40, Code of Federal 
     Regulations (as in effect on the date of enactment of this 
     subsection), except as provided in subparagraph (A)(v), or 
     similar requirements in State programs approved under this 
     section or similar State or local provisions.
       ``(C) Tanks within tribal jurisdiction.--The Administrator, 
     in coordination with Indian tribes, shall--
       ``(i) expeditiously develop and implement a strategy to--

       ``(I) take necessary corrective action in response to 
     releases from leaking underground storage tanks located 
     wholly within the exterior boundaries of an Indian 
     reservation or other area within the jurisdiction of an 
     Indian tribe, giving priority to releases that present the 
     greatest threat to human health or the environment; and
       ``(II) implement and enforce requirements regulating 
     underground storage tanks located wholly within the exterior 
     boundaries of an Indian reservation or other area within the 
     jurisdiction of an Indian tribe; and

       ``(ii) not later than 2 years after the date of enactment 
     of this subsection, and every 2 years thereafter, submit to 
     Congress a report summarizing the status of implementation of 
     the leaking underground storage tank program located wholly 
     within the exterior boundaries of an Indian reservation or 
     other area within the jurisdiction of an Indian tribe.
       ``(2) Allocation.--
       ``(A) Process.--Subject to subparagraph (B), in the case of 
     a State with which the Administrator has entered into a 
     cooperative agreement under section 9003(h)(7)(A), the 
     Administrator shall distribute funds from the Trust Fund to 
     the State using the allocation process developed by the 
     Administrator for such cooperative agreements.
       ``(B) Revisions to process.--The Administrator may revise 
     the allocation process only after--
       ``(i) consulting with State agencies responsible for 
     overseeing corrective action for releases from underground 
     storage tanks and with representatives of owners and 
     operators; and
       ``(ii) taking into consideration, at a minimum--

       ``(I) the total revenue received from each State into the 
     Trust Fund;
       ``(II) the number of confirmed releases from leaking 
     underground storage tanks in each State;
       ``(III) the number of notified petroleum storage tanks in 
     each State;
       ``(IV) the percentage of the population of each State using 
     ground water for any beneficial purpose;
       ``(V) the evaluation of the program performance of each 
     State;
       ``(VI) the evaluation of the financial needs of each State; 
     and
       ``(VII) the evaluation of the ability of each State to use 
     the funds in any year.

       ``(3) Distributions to state agencies.--
       ``(A) In general.--Distributions from the Trust Fund under 
     this subsection shall be made directly to the State agency 
     entering into a cooperative agreement or enforcing the State 
     program.
       ``(B) Administrative expenses.--A State agency that 
     receives funds under this subsection shall limit the 
     proportion of those funds that are used to pay administrative 
     expenses to a percentage that the State may establish by law.
       ``(4) Cost recovery prohibition.--Funds provided to States 
     from the Trust Fund to owners or operators for programs under 
     section 9004(c)(1) for releases from underground storage 
     tanks are not subject to cost recovery by the Administrator 
     under section 9003(h)(6).
       ``(5) Permitted uses.--In addition to uses authorized by 
     other provisions of this subtitle, the Administrator may use 
     funds appropriated to the Environmental Protection Agency 
     from the Trust Fund for enforcement of any regulation 
     promulgated by the Administrator under this subtitle.''.
       (b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of 
     the Internal Revenue Code of 1986 (relating to expenditures) 
     is amended by striking ``to carry out section 9003(h)'' and 
     all that follows and inserting ``to carry out--
       ``(A) section 9003(h) of the Solid Waste Disposal Act (as 
     in effect on the date of enactment of the Superfund 
     Amendments and Reauthorization Act of 1986); and
       ``(B) section 9004(f) of the Solid Waste Disposal Act (as 
     in effect on the date of enactment of the Renewable Fuels Act 
     of 2000).''.
       (c) Studies.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator of the Environmental 
     Protection Agency shall conduct--
       (1) a study to determine the corrosive effects of methyl 
     tertiary butyl ether and other widely used fuels and fuel 
     additives on underground storage tanks; and
       (2) a study to assess the potential public health and 
     environmental risks associated with the use of aboveground 
     storage tanks and the effectiveness of State and Federal 
     regulations or voluntary standards, in existence as of the 
     time of the study, to provide adequate protection of public 
     health and the environment.
       (d) Technical Amendments.--
       (1) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
     U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
     inserting ``substances''.
       (2) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
     U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) 
     and (d) of this section'' and inserting ``subsections (c) and 
     (d)''.
       (3) Section 9004(a) of the Solid Waste Disposal Act (42 
     U.S.C. 6991c(a)) is amended in the first sentence by striking 
     ``referred to'' and all that follows and inserting ``referred 
     to in subparagraph (A) or (B), or both, of section 
     9001(2).''.
       (4) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
     6991d) is amended--

[[Page S3519]]

       (A) in subsection (a), by striking ``study taking'' and 
     inserting ``study, taking'';
       (B) in subsection (b)(1), by striking ``relevent'' and 
     inserting ``relevant''; and
       (C) in subsection (b)(4), by striking ``Evironmental'' and 
     inserting ``Environmental''.

     SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM.

       (a) In General.--The Administrator of the Environmental 
     Protection Agency may enter into cooperative agreements with 
     the United States Geological Survey, the Department of 
     Agriculture, States, local governments, private landowners, 
     and other interested parties to establish voluntary pilot 
     projects to protect the water quality of private wells and to 
     provide technical assistance to users of water from private 
     wells.
       (b) Limitation.--This section does not authorize the 
     issuance of guidance or regulations regarding the use or 
     protection of private wells.

  Mr. LUGAR. Mr. President, I am pleased to join Senator Daschle in 
introducing the Renewable Fuels Act of 2000.
  In July 1999, an independent Blue Ribbon Panel on Oxygenates in 
Gasoline called for major reductions in the use of MTBE as an additive 
in gasoline. They did so because of growing evidence and public 
concerns regarding pollution of drinking water supplies by MTBE. These 
trends are particularly acute in areas of the country using 
Reformulated Gasoline.
  The Reformulated Gasoline Program (RFG) has proven to be a success in 
reducing smog and has exceeded expectations in reducing dangerous and 
carcinogenic air toxics in gasoline. The second stage of the 
Reformulated Gasoline Program (RFG) will commence this summer and will 
have an even greater effect in reducing ozone pollution and air toxics.
  Because of concerns regarding water pollution, it is clear that the 
existing situation regarding MTBE is not tenable. The Governor of 
California has called for a three year phase out of MTBE in California 
and the California Air Resources Board has adopted regulations to that 
effect. Environmental officials from eight Northeastern States have 
proposed a phase down and a capping of the use of MTBE in gasoline in 
their states. MTBE is being found in wells in the Midwest even in areas 
that do not use reformulated gasoline.
  The Renewable Fuels Act of 2000 will lead to about five billion 
gallons of ethanol being produced in 2010 compared to one billion, six 
hundred million gallons today. Under the Act, one gallon of cellulosic 
ethanol will count for one and one-half gallons of regular ethanol in 
determining whether a refiner has met the Renewable Fuels Standard in a 
particular year.
  We are going to have spikes in oil that will disrupt our economy. It 
may or may not be able to be controlled. It will happen before 2010. It 
may happen again next week. Our problem in terms of national security 
and the security of our whole economy revolves around our dependence on 
petroleum-based fuels. We must be able to address this challenge. 
Finding an environmentally sensitive way to resolve the MTBE crisis is 
an important part of this challenge.
  It is clear that MTBE is on its way out. The question is what kind of 
legislation is needed to facilitate its departure and whether that 
legislation will be based on consideration of all of the environmental 
and energy and national security issues involved.
  The Renewable Fuels Act of 2000 will establish a nationwide Renewable 
Fuels Standard (RFS) that would increase the current use of renewable 
fuels from 1.3% in 2000 to 3.3% by 2010. Refiners who produced 
renewable fuels beyond the standard could sell credits to other 
refiners who chose to under comply with the RFS.
  This bill would give the EPA Administrator authority to limit or 
eliminate the use of MTBE in order to protect the public health and the 
environment. It also gives states the ability to further regulate or 
eliminate MTBE use if the EPA does not choose to eliminate it. It would 
also establish strict ``anti backsliding provisions'' to capture all of 
the air quality benefits of MTBE and ethanol as MTBE is phased down or 
phased out.
  The Renewable Fuels Act of 2000 will be good for our economy and our 
environment. Most important of all, it will facilitate the development 
of renewable fuels, a development critical to ensuring U.S. national 
and economic security and stabilizing gas prices.
  I hope that my colleagues will examine this bill as well as other 
legislative approaches that would spur the development of renewable 
fuels such as ethanol, whether derived from corn or other agricultural 
or plant materials.
                                 ______
                                 
      By Mr. JEFFORDS (for himself, Mr. Rockefeller, Mr. Grassley, Mr. 
        Breaux, Mr. Murkowski, Mr. Stevens, Mr. Bond, Mr. Inouye, Mr. 
        Harkin, Mr. Roberts, Mr. Thomas, Mr. Bingaman, Mr. Edwards, Mr. 
        Conrad, and Mr. Kerrey):
  S. 2505. A bill to amend title XVIII of the Social Security Act to 
provide increased assess to health care for medical beneficiaries 
through telemedicine; to the Committee on Finance.


          telehealth improvement and modernization act of 2000

  Mr. JEFFORDS. Mr. President, today I am pleased to join with my good 
friend Senator Rockefeller in introducing legislation that will improve 
upon the federal rules for reimbursement for telemedicine and help to 
ensure that all of our citizens have access to our great health care 
system. We are joined by a broad, bipartisan group of senators in this 
effort.

  In many ways we have the best health care system in the world. But 
increasingly fewer and fewer Americans actually have access to it. I 
recently introduced a tax-credit bill that will help some of these 
Americans and I anticipate supporting future measures aimed at 
increasing access to health care services.
  One important area that demands our attention is the problem of 
access for rural Americans. More than 25 percent of our Nation's senior 
citizens live in areas underserved for modern health care services. At 
the same time, telemedicine has come of age. We have moved beyond the 
feasibility stage and proven that this technology can provide real 
benefits to people in rural and underserved regions of our country.
  In my own State of Vermont, nearly 70 per cent live in rural areas. 
This is the highest percentage rural population of any state in the 
nation. In Vermont, specialists in more than twenty-five disciplines 
from Fletcher Allen Health Care in Burlington are made readily 
available to patients even in the most rural areas. I want to see this 
level of service expand and be made available to all Americans.
  We in Washington have made some good faith attempts to allow for the 
development of telehealth technologies but we have fallen short. In an 
effort to restrain the expansion of these programs, the Health Care 
Financing Administration's interpretation of the laws and its 
cumbersome rules for reimbursement have all but guaranteed the demise 
of current programs.
  Federally-funded telemedicine projects exist in almost every State in 
the Nation. These projects have proven that cost-effective, high-
quality care can be delivered using this technology. The provisions in 
this bill will help to ensure that this care will be continued when the 
federal grants end.
  Why is this legislation needed now? Because current HCFA regulations 
concerning payment are unworkable in the real world. Less than 6 
percent of all telemedicine doctor-patient visits last year provided to 
Medicare beneficiaries would qualify for reimbursement under HCFA's 
current guidelines.
  Now that we have more experience and understand better how 
telemedicine can be used, it is time to enact several changes to the 
law so that these programs can thrive and deliver on their promise of 
providing cost-effective, high-quality healthcare where it is needed 
the most.
  Rural healthcare providers and patients are eager for this 
legislation. Norman Wright, President of the Vermont Association of 
Hospitals and Health Systems, recognized the potential of Fletcher 
Allen's telemedicine program by describing it as one that ``provides 
incredible opportunities for rural providers and their patients because 
it links them to a network with access to the region's best authorities 
for any given condition.''

  I have indeed heard an outpouring of support from healthcare 
providers across my own State on this issue. Gerry Davis, Professor of 
Pulmonary and Critical Care Medicine at Fletcher Allen Health Care, 
described ``appropriate and fair third party payment for

[[Page S3520]]

telemedicine'' as ``essential in order to move this process beyond 
education, and to make the service truly useful for patients in remote 
locations.''
  Telemedicine can be used in so many ways. It can be vital to a 
pediatrician from a rural area with a sick baby who needs to consult 
with a neonatologist from a tertiary care hospital in the dead of 
winter and the middle of the night. It can be also be crucial for a 
depressed senior citizen who desperately needs mental health services 
available in their own rural county. And it can be much needed help for 
a frustrated isolated primary care provider who longs to be able to 
provide for access to specialty services for her patients in their own 
community. All of these people need our help.
  While the changes included in this bill are relatively minor in the 
context of the Medicare program, the effect will be far-reaching. This 
legislation will allow us to avoid arbitrarily denying access to health 
care for our senior citizens and persons with disabilities just because 
of where they live. It will allow for fair and reasonable reimbursement 
for services that can be delivered appropriately in this way. It will 
also encourage the incorporation of telehealth technology in the care 
plans of home health agencies, an area that has already shown great 
promise for the future in terms of cost-effective disease management. 
In summary, it will allow us to begin to release the incredible 
potential of telemedicine.
  Mr. President, I urge my colleagues to join us in bringing HCFA's 
approach to the delivery of health care into the 21st Century. Any 
Medicare reform must include progress on telemedicine for our Nation's 
rural areas.
  Mr. ROCKEFELLER. Mr. President, I am extremely pleased to be here 
today to introduce the Telemedicine Improvement and Modernization Act 
with Senator Jeffords and many other of my Senate colleagues. This bill 
incorporates two issues that I care about passionately--health care and 
technology.
  Telemedicine has the potential to bridge the gap that currently 
exists between patients and providers. More than 25% of our Nation's 
senior citizens live in areas where speciality care may not be 
available. In states like my own where there are very few primary care 
or specialty care resources and travel is difficult, telemedicine is 
critical to ensuring that people in remote areas are getting health 
care they need. By expanding access to health care through 
telemedicine, we also improve the quality of care available to people 
living in underserved areas. Personally, I believe that we are just 
beginning to tap the enormous potential of technology to advance 
quality health care, especially in rural areas.
  Yet, Medicare's telemedicine program is inefficient in its current 
form. These inefficiencies threaten the future of telemedicine 
services. When we first created this program, our knowledge of the 
potential of this new technology, or its practical applications was 
very limited. Today we have a much better understanding of how 
telemedicine actually works. With this new knowledge, we can repair the 
inefficiencies of the current system and encourage the use of this 
highly effective health practice. By accomplishing this goal, we can 
ensure that quality health care is available to all seniors and 
disabled Americans regardless of where they live.
  There are 8 main elements of the bill:
  (1) Eliminating the provider ``fee sharing'' requirement;
  (2) Eliminating the requirement for a ``telepresenter'';
  (3) Allowing limited reimbursement for referring clinics to recover 
the cost of their services;
  (4) Expanding telemedicine services to all non-MSAs;
  (5) Expanding telemedicine services to direct patient care, not just 
professional consultations;
  (6) Making all providers eligible for HCFA reimbursement for services 
delivered via telemedicine;
  (7) Creating a federal demonstration project that permits 
telemedicine reimbursement for ``store and forward'' consultations 
(i.e., x-rays that are sent to another facility for consultation); and
  (8) Permitting telehomecare.
  While these changes are relatively minor in the context of the 
Medicare program, the affect will be far-reaching. The modernizations 
we are proposing will dramatically improve access to quality health 
care in rural areas. This legislation will allow us to begin to release 
the incredible potential of telemedicine.
  On a final note, I'd like to thank Karen Edison for her expertise and 
determination in working on this bill. Because Karen is a practicing 
telemedicine physician, she has been invaluable in developing and 
advancing this cause.
  Thank you, Mr. President for your time today. I hope all of my 
colleagues will join with me in passing this important piece of 
legislation.
                                 ______
                                 
      By Mr. GORTON:
  S. 2506. A bill to amend title 46, United States Code, with respect 
to the Federal preemption of State law concerning the regulation of 
marine and ocean navigation, safety, and transportation by States; to 
the Committee on Commerce, Science, and Transportation.


    legislation regarding marine and ocean navigation, safety, and 
                             transportation

  Mr. GORTON. Mr. President, environmental protection and states' 
rights were dealt a blow on March 6th, when the U.S. Supreme Court 
decided the case of United States vs. Locke. The Court, noting that 
even though federal and international laws ``may be insufficient 
protection,'' invalidated Washington laws, and potentially laws in 
eleven other states, that provide protections against spills by oil 
tankers. I disagree with the Court's decision, because I believe that 
Washington state should be allowed to protect its shores as it sees 
fit.
  That is why, today I am pleased to introduce the ``States Prevention 
of Oil Tanker Spills Act'' (SPOTS)-legislation that will reinstate the 
right of all states to adopt additional standards beyond existing 
federal requirements governing the operation, maintenance, equipment, 
personnel and manning of oil tankers. While this legislation will apply 
to all shoreline states, it is particularly important to Washington.
  Washington has always taken seriously its duty to protect the health 
and safety of its citizens, and has historically supported aggressive 
protections of its treasured natural resources, including Washington 
shorelines and waterways. Oil refineries and product terminals located 
in Cherry Point, Ferndale, Tacoma, Anacortes, and nearby Vancouver, 
British Columbia make Washington an international destination and 
shipping point for millions of tons of oil annually. A large volume of 
crude oil is transported to and from the state near heavily populated 
Puget Sound.
  The frequent traffic of large vessels carrying vast amounts of oil 
increases the risks to the environment and public safety, and 
unfortunately, has resulted in devastating spills. The 1989 Exxon 
Valdez disaster was one of the most environmentally devastating in 
United States history. The huge oil tanker ran aground in Prince 
William Sound, Alaska, dumping 11 million gallons of crude oil into the 
Pacific Ocean, and damaging more than 1,000 miles of coastline in 
south-central Alaska. The massive spill resulted in billions of dollars 
in damage claims by over 40,000 people, including some 6,500 Washington 
fishermen who have yet to be compensated for their loss.
  Incidents such as the Valdez disaster served as a catalyst for 
Washington and many other ocean shoreline states--as well as Congress--
to enact laws to prevent similar catastrophic events. Congress passed 
the Oil Pollution Act of 1990. Washington passed its own legislation in 
1994, which created the state Office of Marine Safety and directed the 
establishment of prevention plans for ``the best achievable 
protection'' from the damage caused by oil spills.
  Washington's law enhanced, or added a number of requirements to, the 
federal law. For example, instead of merely requiring tanker crews to 
``clearly understand English,'' as federal law prescribes, the state 
regulation required tanker crews to be proficient in English in order 
to prevent miscommunication between American navigators and foreign 
crews. To heighten safety protection in times of limited visibility due 
to fog or other inclement weather conditions common to the Puget Sound, 
the state also added a requirement that a tanker

[[Page S3521]]

have on its bridge at least three licensed officers, a helmsman, and a 
lookout. Among other requirements adopted by Washington are 
prescriptions regarding training, location plotting, pre-arrival tests, 
and drug testing for tanker crews.
  While federal law governs the design and construction of tankers, as 
well as issues affecting Coast Guard and national security, I believe 
that states should have the right to enact additional regulations that 
they believe will enhance the safety of their citizens and 
natural resources. Twenty states' Attorneys General signed an amicus 
brief in United States vs. Locke, agreeing with Washington on this 
point.

  Unfortunately, the International Association of Independent Tanker 
Owners, (``INTERTANKO''), a group of companies that own or operate more 
than 2,000 tankers in the United States and foreign nations, does not 
agree with this common sense proposition. Shortly after Washington's 
oil tanker law was enacted. INTERTANKO filed a lawsuit to overturn it. 
A federal district court ruled in Washington's favor, but the 
Administration voluntarily intervened in the oil tanker companies' 
appeal, and the U.S. Supreme Court held that the Coast Guard's weaker 
regulations superseded the state's requirements on oil tankers.
  Some have suggested that additional state regulation would interfere 
with the federal government's relations with foreign governments. In my 
view, allowing states to add common sense safety measures would have 
little, if any, impact on foreign relations. It would, however, enhance 
environmental protection.
  This legislation won't eliminate all oil spills. I believe, however, 
that it will help to prevent some. Laws protecting our shores from 
dangerous oil spills should not be brought to the lowest common 
denominator. Rather, allowing states to enhance federal laws where 
appropriate, will ensure an even greater level of protection for our 
citizens and resources in the future. I urge my colleagues to support 
this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2506

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

     SECTION 1. STANDARDS.

       Section 3703 of title 46, United States Code, is amended by 
     adding at the end thereof the following:
       ``(d) Preservation of State Authority.--Nothing in this 
     chapter, or any other provision of law, preempts the 
     authority of a State to adopt additional standards regarding 
     maintenance, operation, equipping, personnel qualification, 
     or manning of vessels to which the regulations under 
     subsection (a) apply.''.
                                 ______
                                 

             By Mr. CAMPBELL (for himself and Mr. Allard):

  S. 2508. A bill to amend the Colorado Ute Indian Water Rights 
Settlement Act of 1988 to provide for a final settlement of the claims 
of the Colorado Ute Indian Tribes, and for other purposes.


             COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000

  Mr. CAMPBELL. Mr. President, today I introduce The Colorado Ute 
Settlement Act Amendment of 2000, and take this opportunity to address 
promises broken, and the opportunity for this nation to finally keep 
the promises it made to the Southern and Ute Mountain Ute Indian tribes 
of Southern Colorado (Ute tribes). If we can find the resolve to get 
this done, we will have--for the first time--honored a treaty with an 
Indian tribe.
  I am pleased to have my friend and colleague from Colorado, Senator 
Wayne Allard, join me as an original cosponsor of this bill.
  In the 1860's the United States promised the Ute tribes it would 
provide a permanent homeland for their people in the southwest. The 
water rights for that homeland remain senior over all others. Over a 
hundred years later, the tribes' water is being used by their 
neighbors. Our promise to the tribes gave them, the state, local water 
users, and the United States the choice of fighting for the water in 
court or negotiating and producing an enforceable agreement that all 
the parties can live with.
  I am proud to have been a part of the effort over the past 12 years 
that resulted in an agreement to finally settle the tribal water rights 
claims, and provide water--not promises or financial compensation--for 
all involved. But, this fight is not a new one. The legal wrangling 
over the Ute Indian water rights was already over a decade old when the 
settlement was reached in 1986. Two years later Congress enacted the 
Colorado Ute Indian Water Rights Settlement Act of 1988. The Settlement 
Act promised the Ute tribes an adequate water supply to fulfill all of 
the promises made to them in the 1860's for a homeland and an adequate 
water supply. The Settlement Act promised; if the Ute tribes would give 
up their claims to the water under their treaties, we would provide 
them with an adequate alternative water supply.
  As the chairman of the Senate Committee on Indian Affairs and as one 
who has Indian blood coursing through my veins, I am reminded almost 
every day of the promises and treaties that have been broken by the 
United States. While we in the United States Congress are sometimes 
unable to undo the results of this chain of shattered promises, we 
should at least agree that we will not continue to ignore treaties with 
any more American Indian tribes. The dismal truth is for the last ten 
years I have watched those opposed to the Animas-La Plata project work 
to prevent the federal government from fulfilling its commitment to the 
Ute Indian tribes manipulating facts and the law in an effort to deny 
our responsibilities as a nation. As a result we have squandered 
decades of time and millions of taxpayers dollars in an effort to not 
fulfill the promises made to the Ute tribes. I urge my colleagues to 
bring this sorry trail of broken promises to an end.

  I remain committed to keeping our word to the Tribes of Colorado. 
Since the tribes have urged me to introduce this further A-LP 
compromise legislation, I am persuaded that this proposal will not 
violate the promises made to the tribes in 1988. However, if this bill 
is not enacted, or the permanent opponents of the project are able to 
further frustrate and delay the construction of the project, then this 
bill will be another broken promise to another Indian tribe and I 
refuse to be a part of that. Therefore, I have only introduced this 
bill with the understanding that it will include provisions that 
prevent needless delays.
  I know there are people who will oppose any version of the Animas-La 
Plata project. In fact some groups had already signed letters rejecting 
the results of the draft supplemental environmental impact statement 
before it was made public. In part, they criticized the Department of 
Interior for prejudging the results of its analysis. I ask you, who is 
doing the prejudging? There are those who will oppose the project even 
if the final supplemental EIS reaches the same conclusion as the draft 
EIS: that constructing the facilities described by this bill is the 
least damaging way of fulfilling the federal government's promises to 
the Ute tribes.
  It is absurd to continue to negotiate with those prepared to oppose 
any version of this project or to support efforts to continue to delay 
our moral and legal obligation to the Tribes.
  First, my bill recognizes that a great deal of environmental review 
has already occurred, and that the facts have not changed, no matter 
what version of this project is discussed. The Interior Secretary is to 
continue his effort to produce a final supplemental EIS for the 
project. However, this bill makes clear that if the Secretary 
ultimately selects ``alternative #4,'' it will reflect that the 
Congress will also have had the opportunity to review the same record, 
and we concur with this judgment.

  Similarly, the bill makes clear that if the U.S. Fish and Wildlife 
Service determines that an annual diversion of 57,100 acre feet of 
water can occur without jeopardizing the habitat of endangered fish not 
known to be there, Congress concurs and believes that the project 
should move forward, and allocate quantities of water in the manner 
provided for in this bill. In short, this bill is the last, best chance 
to keep the Tribes from suing the federal government and, in all 
likelihood, prevail at an unknown cost to taxpayers.
  For those who hope to wait even longer before proceeding with this

[[Page S3522]]

project, I will point out that as of January 1, 2000, federal law 
authorized the Ute tribes to return to court to assert their claims for 
the water already being used in southwestern Colorado. Perhaps they 
should. In a demonstration of their good faith, the tribes have not yet 
returned to court to assert their claims. But we only have a small 
window of opportunity before the tribes must either assert their claims 
or allow them to lapse.
  At any time, the tribes could now choose to return to court. I am 
determined to bring this matter before the Senate, one last time. We 
cannot allow this bill to become another step in the long trail of 
broken promises. We are a nation based on the respect for the law. Our 
compassion, our limitless dedication to defending the truth, and our 
history of preserving the dignity of even the least of us is well 
documented. So, too, is our atrocious record of respect for the rights 
and the most basic tenets of human dignity when it comes to the first 
Americans on this continent.
  I urge my colleagues to support this important legislation and ask 
unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2508

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

     SECTION 1. SHORT TITLE; FINDINGS; DEFINITIONS.

       (a) Short Title.--This Act may be cited as the ``Colorado 
     Ute Settlement Act Amendments of 2000''.
       (b) Findings.--Congress makes the following findings:
       (1) In order to provide for a full and final settlement of 
     the claims of the Colorado Ute Indian Tribes on the Animas 
     and La Plata Rivers, the Tribes, the State of Colorado, and 
     certain of the non-Indian parties to the Agreement have 
     proposed certain modifications to the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (2) The claims of the Colorado Ute Indian Tribes on all 
     rivers in Colorado other than the Animas and La Plata Rivers 
     have been settled in accordance with the provisions of the 
     Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973).
       (3) The Indian and non-Indian communities of southwest 
     Colorado and northwest New Mexico will be benefited by a 
     settlement of the tribal claims on the Animas and La Plata 
     Rivers that provides the Tribes with a firm water supply 
     without taking water away from existing uses.
       (4) The Agreement contemplated a specific timetable for the 
     delivery of irrigation and municipal and industrial water and 
     other benefits to the Tribes from the Animas-La Plata 
     Project, which timetable has not been met. The provision of 
     irrigation water can not presently be satisfied under the 
     current implementation of the Federal Water Pollution Control 
     Act (33 U.S.C. 1251 et seq.) and the Endangered Species Act 
     of 1973 (16 U.S.C. 1531 et seq.).
       (5) In order to meet the requirements of the Endangered 
     Species Act of 1973 (16 U.S.C. 1531 et seq.), and in 
     particular the various biological opinions issued by the Fish 
     and Wildlife Service, the amendments made by this Act are 
     needed to provide for a significant reduction in the 
     facilities and water supply contemplated under the Agreement.
       (6) The substitute benefits provided to the Tribes under 
     the amendments made by this Act, including the waiver of 
     capital costs and the provisions of funds for natural 
     resource enhancement, result in a settlement that provides 
     the Tribes with benefits that are equivalent to those that 
     the Tribes would have received under the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (7) The requirement that the Secretary of the Interior 
     comply with the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) and other national environmental laws 
     before implementing the proposed settlement will ensure that 
     the satisfaction of the tribal water rights is accomplished 
     in an environmentally responsible fashion.
       (8) Federal courts have considered the nature and the 
     extent of Congressional participation when reviewing Federal 
     compliance with the requirements of the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
       (9) In considering the full range of alternatives for 
     satisfying the water rights claims of the Southern Ute Indian 
     Tribe and Ute Mountain Ute Indian Tribe, Congress has held 
     numerous legislative hearings and deliberations, and reviewed 
     the considerable record including the following documents:
       (A) The Final EIS No. INT-FES-80-18, dated July 1, 1980.
       (B) The Draft Supplement to the FES No. INT-DES-92-41, 
     dated October 13, 1992.
       (C) The Final Supplemental to the FES No. 96-23, dated 
     April 26, 1996;
       (D) The Draft Supplemental EIS, dated January 14, 2000.
       (c) Definitions.--In this Act:
       (1) Agreement.--The term ``Agreement'' has the meaning 
     given that term in section 3(1) of the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2973).
       (2) Animas-la plata project.--The term ``Animas-La Plata 
     Project'' has the meaning given that term in section 3(2) of 
     the Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973).
       (3) Dolores project.--The term ``Dolores Project'' has the 
     meaning given that term in section 3(3) of the Colorado Ute 
     Indian Water Rights Settlement Act of 1988 (Public Law 100-
     585; 102 Stat. 2974).
       (4) Tribe; tribes.--The term ``tribe'' or ``tribes'' has 
     the meaning given that term in section 3(6) of the Colorado 
     Ute Indian Water Rights Settlement Act of 1988 (Public Law 
     100-585; 102 Stat. 2974).

     SEC. 2. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN 
                   WATER RIGHTS SETTLEMENT ACT OF 1988.

       Subsection (a) of section 6 of the Colorado Ute Indian 
     Water Rights Settlement Act of 1988 (Public Law 100-585; 102 
     Stat. 2975) is amended to read as follows:
       ``(a) Reservoir; Municipal and Industrial Water.--
       ``(1) Facilities.--
       ``(A) In general.--After the date of enactment of this 
     subsection, but prior to January 1, 2005, the Secretary, in 
     order to settle the outstanding claims of the Tribes on the 
     Animas and La Plata Rivers, acting through the Bureau of 
     Reclamation, is specifically authorized to--
       ``(i) complete construction of, and operate and maintain, a 
     reservoir, a pumping plant, a reservoir inlet conduit, and 
     appurtenant facilities with sufficient capacity to divert and 
     store water from the Animas River to provide for an average 
     annual depletion of 57,100 acre-feet of water to be used for 
     a municipal and industrial water supply, which facilities 
     shall--

       ``(I) be designed and operated in accordance with the 
     hydrologic regime necessary for the recovery of the 
     endangered fish of the San Juan River as determined by the 
     San Juan River Recovery Implementation Program;
       ``(II) include an inactive pool of an appropriate size to 
     be determined by the Secretary following the completion of 
     required environmental compliance activities; and
       ``(III) include those recreation facilities determined to 
     be appropriate by agreement between the State of Colorado and 
     the Secretary that shall address the payment of any of the 
     costs of such facilities by the State of Colorado in addition 
     to the costs described in paragraph (3); and

       ``(ii) deliver, through the use of the project components 
     referred to in clause (i), municipal and industrial water 
     allocations--

       ``(I) with an average annual depletion not to exceed 16,525 
     acre-feet of water, to the Southern Ute Indian Tribe for its 
     present and future needs;
       ``(II) with an average annual depletion not to exceed 
     16,525 acre-feet of water, to the Ute Mountain Ute Indian 
     Tribe for its present and future needs;
       ``(III) with an average annual depletion not to exceed 
     2,340 acre-feet of water, to the Navajo Nation for its 
     present and future needs;
       ``(IV) with an average annual depletion not to exceed 
     10,400 acre-feet of water, to the San Juan Water Commission 
     for its present and future needs;
       ``(V) with an average annual depletion of an amount not to 
     exceed 2,600 acre-feet of water, to the Animas-La Plata 
     Conservancy District for its present and future needs;
       ``(VI) with an average annual depletion of an amount not to 
     exceed 5,230 acre-feet of water, to the State of Colorado for 
     its present and future needs; and
       ``(VII) with an average annual depletion of an amount not 
     to exceed 780 acre-feet of water, to the La Plata Conservancy 
     District of New Mexico for its present and future needs.

       ``(B) Applicability of other federal law.--The 
     responsibilities of the Secretary described in subparagraph 
     (A) are subject to the requirements of Federal laws related 
     to the protection of the environment and otherwise applicable 
     to the construction of the proposed facilities, including the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), the Clean Water Act (42 U.S.C. 7401 et seq.), and the 
     Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). 
     Nothing in this Act shall be construed to predetermine or 
     otherwise affect the outcome of any analysis conducted by the 
     Secretary or any other Federal official under applicable 
     laws.
       ``(C) Limitation.--
       ``(i) In general.--If constructed, the facilities described 
     in subparagraph (A) shall not be used in conjunction with any 
     other facility authorized as part of the Animas-La Plata 
     Project without express authorization from Congress.
       ``(ii) Contingency in application.--If the facilities 
     described in subparagraph (A) are not constructed and 
     operated, clause (i) shall not take effect.
       ``(2) Tribal construction costs.--Construction costs 
     allocable to the facilities that are required to deliver the 
     municipal and industrial water allocations described in 
     subclauses (I), (II) and (III) of paragraph (1)(A)(ii) shall 
     be nonreimbursable to the United States.
       ``(3) Nontribal water capital obligations.--Under the 
     provisions of section 9 of the Act of August 4, 1939 (43 
     U.S.C. 485h), the

[[Page S3523]]

     nontribal municipal and industrial water capital repayment 
     obligations for the facilities described in paragraph 
     (1)(A)(i) may be satisfied upon the payment in full of the 
     nontribal water capital obligations prior to the initiation 
     of construction. The amount of the obligations described in 
     the preceding sentence shall be determined by agreement 
     between the Secretary of the Interior and the entity 
     responsible for such repayment as to the appropriate 
     reimbursable share of the construction costs allocated to 
     that entity's municipal water supply. Such agreement shall 
     take into account the fact that the construction of 
     facilities to provide irrigation water supplies from the 
     Animas-La Plata Project is not authorized under paragraph 
     (1)(A)(i) and no costs associated with the design or 
     development of such facilities, including costs associated 
     with environmental compliance, shall be allocable to the 
     municipal and industrial users of the facilities authorized 
     under such paragraph.
       ``(4) Tribal water allocations.--
       ``(A) In general.--With respect to municipal and industrial 
     water allocated to a Tribe from the Animas-La Plata Project 
     or the Dolores Project, until that water is first used by a 
     Tribe or used pursuant to a water use contract with the 
     Tribe, the Secretary shall pay the annual operation, 
     maintenance, and replacement costs allocable to that 
     municipal and industrial water allocation of the Tribe.
       ``(B) Treatment of costs.--A Tribe shall not be required to 
     reimburse the Secretary for the payment of any cost referred 
     to in subparagraph (A).
       ``(5) Repayment of pro rata share.--Upon a Tribe's first 
     use of an increment of a municipal and industrial water 
     allocation described in paragraph (4), or the Tribe's first 
     use of such water pursuant to the terms of a water use 
     contract--
       ``(A) repayment of that increment's pro rata share of those 
     allocable construction costs for the Dolores Project shall be 
     made by the Tribe; and
       ``(B) the Tribe shall bear a pro rata share of the 
     allocable annual operation, maintenance, and replacement 
     costs of the increment as referred to in paragraph (4).''.

     SEC. 3. COMPLIANCE WITH THE NATIONAL ENVIRONMENTAL POLICY ACT 
                   OF 1969.

       Section 6 of the Colorado Ute Indian Water Rights 
     Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2975) 
     is amended by adding at the end the following:
       ``(i) Compliance with the National Environmental Policy Act 
     of 1969.--
       ``(1) Authority.--Nothing in this Act shall be construed to 
     alter, amend, or modify the authority or discretion of the 
     Secretary or any other Federal official under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or 
     any other Federal law.
       ``(2) Determination of congress.--Subject to paragraph (3), 
     in any defense to a challenge of the Final Environmental 
     Impact Statement prepared pursuant to the Notice of Intent to 
     Prepare a Draft Environmental Impact Statement, as published 
     in the Federal Register on January 4, 1999 (64 Fed Reg 176-
     179), or the compliance with the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.) or the Federal 
     Water Pollution Control Act (33 U.S.C. 1251 et seq.), and in 
     addition to the Record of Decision and any other documents or 
     materials submitted in defense of its decision, the United 
     States may assert in its defense that Congress, based upon 
     the deliberations and review described in paragraph (9) of 
     section 1(b) of the Colorado Ute Settlement Act Amendments of 
     2000, has determined that the alternative described in such 
     Final Statement meets the Federal government's water supply 
     obligations to the Ute tribes under this Act in a manner that 
     provides the most benefits to, and has the least impact on, 
     the quality of the human environment.
       ``(3) Application of provision.--This subsection shall only 
     apply if Alternative #4, as presented in the Draft 
     Supplemental Environmental Impact Statement dated January 14, 
     2000, or an alternative substantially similar to Alternative 
     #4, is selected by the Secretary.
       ``(4) No effect of modification of facilities.--The 
     application of this section shall not be affected by a 
     modification of the facilities described in subsection 
     (a)(1)(A)(i) to address the provisions in the San Juan River 
     Recovery Implementation Program.''.

     SEC. 4. COMPLIANCE WITH THE ENDANGERED SPECIES ACT OF 1973.

       Section 6 of the Colorado Ute Indian Water Rights 
     Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2975), 
     as amended by section 3, is amended by adding at the end the 
     following:
       ``(j) Compliance With the Endangered Species Act of 1973.--
       ``(1) Authority.--Nothing in this section shall be 
     construed to alter, amend, or modify the authority or 
     discretion of the Secretary or any other Federal official 
     under the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.) or any other Federal law.
       ``(2) Determination of congress.--Subject to paragraph (3), 
     in any defense to a challenge of the Biological Opinion 
     resulting from the Bureau of Reclamation Biological 
     Assessment, January 14, 2000, or the compliance with the 
     Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), and 
     in addition to the Record of Decision and any other documents 
     or materials submitted in defense of its decision, the United 
     States may assert in its defense that Congress, based on the 
     deliberations and review described in paragraph (9) of 
     section 1(b) of the Colorado Ute Settlement Act Amendments of 
     2000, has determined that constructing and operating the 
     facilities described in subsection (a)(1)(A)(i) meets the 
     Federal government's water supply obligation to the Ute 
     tribes under that Act without violating the Endangered 
     Species Act of 1973 (16 U.S.C. 1531 et seq.).
       ``(3) Application of provision.--This subsection shall only 
     apply if the Biological Opinion referred to in paragraph (2) 
     or any reasonable and prudent alternative suggested by the 
     Secretary pursuant to section 7 of the Endangered Species Act 
     of 1973 (16 U.S.C. 1536) authorizes an average annual 
     depletion of at least 57,100 acre feet of water.
       ``(4) No effect of modification of facilities.--The 
     application of this subsection shall not be affected by a 
     modification of the facilities described in subsection 
     (a)(1)(A)(i) to address the provisions in the San Juan River 
     Recovery Implementation Program.''.

     SEC. 5. MISCELLANEOUS.

       The Colorado Ute Indian Water Rights Settlement Act of 1988 
     (Public Law 100-585; 102 Stat. 2973) is amended by adding at 
     the end the following:

     ``SEC. 15. NEW MEXICO AND NAVAJO NATION WATER MATTERS.

       ``(a) Assignment of Water Permit.--Upon the request of the 
     State Engineer of the State of New Mexico, the Secretary 
     shall, in a manner consistent with applicable State law, 
     assign, without consideration, to the New Mexico Animas-La 
     Plata Project beneficiaries or the New Mexico Interstate 
     Stream Commission any portion of the Department of the 
     Interior's interest in New Mexico Engineer Permit Number 
     2883, dated May 1, 1956, in order to fulfill the New Mexico 
     purposes of the Animas-La Plata Project, so long as the 
     permit assignment does not affect the application of the 
     Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) to 
     the use of the water involved.
       ``(b) Navajo Nation Municipal Pipeline.--The Secretary may 
     construct a water line to augment the existing system that 
     conveys the municipal water supplies, in an amount not less 
     than 4,680 acre-feet per year, of the Navajo Nation to the 
     Navajo Indian Reservation at Shiprock, New Mexico. The 
     Secretary shall comply with all applicable environmental laws 
     with respect to such water line. Construction costs allocated 
     to the Navajo Nation for such water line shall be 
     nonreimbursable to the United States.
       ``(c) Protection of Navajo Water Claims.--Nothing in this 
     Act shall be construed to quantify or otherwise adversely 
     affect the water rights and the claims of entitlement to 
     water of the Navajo Nation.

     ``SEC. 16. TRIBAL RESOURCE FUNDS.

       ``(a) Establishment.--
       ``(1) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section, $20,000,000 for 
     fiscal year 2001 and $20,000,000 for fiscal year 2002. Not 
     later than 60 days after amounts are appropriated and 
     available to the Secretary for a fiscal year under this 
     paragraph, the Secretary shall make a payment to each of the 
     Tribal Resource Funds established under paragraph (2). Each 
     such payment shall be equal to 50 percent of the amount 
     appropriated for the fiscal year involved.
       ``(2) Funds.--The Secretary shall establish a--
       ``(A) Southern Ute Tribal Resource Fund; and
       ``(B) Ute Mountain Ute Tribal Resource Fund.
     A separate account shall be maintained for each such Fund.
       ``(b) Adjustment.--To the extent that the amount 
     appropriated under subsection (a)(1) in any fiscal year is 
     less than the amount authorized for such fiscal year under 
     such subsection, the Secretary shall, subject to the 
     availability of appropriations, pay to each of the Tribal 
     Reserve Funds an adjustment amount equal to the interest 
     income, as determined by the Secretary in his or her sole 
     discretion, that would have been earned on the amount 
     authorized but not appropriated under such subsection had 
     that amount been placed in the Fund as required under such 
     subsection.
       ``(c) Tribal Development.--
       ``(1) Investment.--The Secretary shall, in the absence of 
     an approved tribal investment plan provided for under 
     paragraph (2), invest the amount in each Tribal Resource Fund 
     in accordance with the Act entitled, `An Act to authorize the 
     deposit and investment of Indian funds' approved June 24, 
     1938 (25 U.S.C. 162a). The Secretary shall disburse, at the 
     request of a Tribe, the principal and income in its Resource 
     Fund, or any part thereof, in accordance with a resource 
     acquisition and enhancement plan approved under paragraph 
     (3).
       ``(2) Investment plan.--
       ``(A) In general.--In lieu of the investment provided for 
     in paragraph (1), a Tribe may submit a tribal investment plan 
     applicable to all or part of the Tribe's Tribal Resource 
     Fund.
       ``(B) Approval.--Not later than 60 days after the date on 
     which an investment plan is submitted under subparagraph (A), 
     the Secretary shall approve such investment plan if the 
     Secretary finds that the plan is reasonable and sound. If the 
     Secretary does not approve such investment plan, the 
     Secretary shall set forth in writing and with particularity 
     the reasons for such disapproval. If such investment plan is 
     approved by the Secretary, the Tribal Resource Fund involved 
     shall be disbursed to the Tribe to be invested by the Tribe 
     in accordance with the approved investment plan.

[[Page S3524]]

       ``(C) Compliance.--The Secretary may take such steps as the 
     Secretary determines to be necessary to monitor the 
     compliance of a Tribe with an investment plan approved under 
     subparagraph (B). The United States shall not be responsible 
     for the review, approval, or audit of any individual 
     investment under the plan. The United States shall not be 
     directly or indirectly liable with respect to any such 
     investment, including any act or omission of the Tribe in 
     managing or investing such funds.
       ``(D) Economic development plan.--The principal and income 
     derived from tribal investments under an investment plan 
     approved under subparagraph (B) shall be subject to the 
     provisions of this section and shall be expended only in 
     accordance with an economic development plan approved under 
     paragraph (3).
       ``(3) Economic development plan.--
       ``(A) In general.--Each Tribe shall submit to the Secretary 
     a resource acquisition and enhancement plan for all or any 
     portion of its Tribal Resource Fund.
       ``(B) Approval.--Not later than 60 days after the date on 
     which a plan is submitted under subparagraph (A), the 
     Secretary shall approve such investment plan if the Secretary 
     finds that the plan is reasonably related to the protection, 
     acquisition, enhancement, or development of natural resources 
     for the benefit of the Tribe and its members. If the 
     Secretary does not approve such plan, the Secretary shall, at 
     the time of such determination, set forth in writing and with 
     particularity the reasons for such disapproval.
       ``(C) Modification.--Subject to the approval of the 
     Secretary, each Tribe may modify a plan approved under 
     subparagraph (B).
       ``(D) Liability.--The United States shall not be directly 
     or indirectly liable for any claim or cause of action arising 
     from the approval of a plan under this paragraph, or from the 
     use and expenditure by the Tribe of the principal or interest 
     of the Funds.
       ``(d) Limitation on Per Capita Distributions.--No part of 
     the principal contained in the Tribal Resource Fund, or of 
     the income accruing to such funds, or the revenue from any 
     water use contract, shall be distributed to any member of 
     either Tribe on a per capita basis.
       ``(e) Limitation on Setting Aside Final Consent Decree.--
     Neither the Tribes nor the United States shall have the right 
     to set aside the final consent decree solely because the 
     requirements of subsection (c) are not complied with or 
     implemented.

     ``SEC. 17. COLORADO UTE SETTLEMENT FUND.

       ``(a) Establishment of Fund.--There is hereby established 
     within the Treasury of the United States a fund to be known 
     as the `Colorado Ute Settlement Fund.'
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Colorado Ute Settlement Fund such 
     funds as are necessary to complete the construction of the 
     facilities described in section 6(a)(1)(A) within 6 years of 
     the date of enactment of this section. Such funds are 
     authorized to be appropriated for each of the first 5 fiscal 
     years beginning with the first full fiscal year following the 
     date of enactment of this section.
       ``(c) Interest.--Amounts appropriated under subsection (b) 
     shall accrue interest, to be paid on the dates that are 1, 2, 
     3, 4, and 5 years after the date of enactment of this 
     section, at a rate to be determined by the Secretary of the 
     Treasury taking into consideration the average market yield 
     on outstanding Federal obligations of comparable maturity, 
     except that no such interest shall be paid during any period 
     where a binding final court order prevents construction of 
     the facilities described in section 6(a)(1)(A).

     ``SEC. 18. FINAL SETTLEMENT.

       ``(a) In General.--The construction of the facilities 
     described in section 6(a)(1)(A), the allocation of the water 
     supply from those facilities to the Tribes as described in 
     that section, and the provision of funds to the Tribes in 
     accordance with sections 16 and 17 shall constitute final 
     settlement of the tribal claims to water rights on the Animas 
     and La Plata Rivers in the State of Colorado.
       ``(b) Statutory Construction.--Nothing in this section 
     shall be construed to affect the right of the Tribes to water 
     rights on the streams and rivers described in the Agreement, 
     other than the Animas and La Plata Rivers, to receive the 
     amounts of water dedicated to tribal use under the Agreement, 
     or to acquire water rights under the laws of the State of 
     Colorado.
       ``(c) Action by the Attorney General.--The Attorney General 
     shall file with the District Court, Water Division Number 7, 
     of the State of Colorado, such instruments as may be 
     necessary to request the court to amend the final consent 
     decree to provide for the amendments made to this Act under 
     the Colorado Ute Indian Water Rights Settlement Act 
     Amendments of 2000.

     ``SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN 
                   FUNDS.

       ``(a) In General.--Nothing in the amendments made by the 
     Colorado Ute Settlement Act Amendments of 2000 shall be 
     construed to affect the applicability of any provision of 
     this Act.
       ``(b) Treatment of Uncommitted Portion of Cost-Sharing 
     Obligation.--The uncommitted portion of the cost-sharing 
     obligation of the State of Colorado referred to in section 
     6(a)(3) shall be made available, upon the request of the 
     State of Colorado, to the State of Colorado after the date on 
     which payment is made of the amount specified in that 
     section.''.
                                 ______
                                 
      By Mr. WYDEN:
  S. 2509. A bill for the relief of Rose-Marie Barbeau-Quinn; to the 
Committee on the Judiciary.


               for the relief of rose-marie barbeau-quinn

 Mr. WYDEN. Mr. President, I am here today to introduce 
legislation that will allow a valuable member of the Portland, Oregon, 
community to become a permanent resident of the United States of 
America. Rose-Marie Barbeau-Quinn, a native of Canada, has lived in 
Portland since 1976. Together with her husband, Michael Quinn, she ran 
the Vat and Tonsure Tavern, a unique and popular restaurant that was a 
favorite of many of my constituents.
  While Ms. Barbeau-Quinn and her husband, an American citizen, were 
together for over 16 years, their marriage did not take place until 
shortly before Michael's death in 1991. Since Rose-Marie and Michael 
were not formally married for the two years required by immigration 
law, and despite their 16 years together living as husband and wife, 
Rose-Marie has not been able to file for permanent residency in this 
country.
  This legislation will correct their injustice, and allow Rose-Marie 
to be a permanent resident of the country she loves and has called home 
for over 20 years. I first learned of Ms. Barbeau-Quinn's situation 
from Senator Hatfield when I joined the Senate in 1996. Senator 
Hatfield championed her cause in the 104th Congress, and, as his 
request and the request of many of my constituents, I am attempting to 
complete the work that Senator Hatfield started. We both firmly believe 
that Rose-Marie would be a model United States resident.
  I urge my colleagues to support this legislation, so that Rose-Marie 
Barbeau-Quinn can continue her place as a valuable member of our 
community for many years to come.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2509

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

     SECTION 1. PERMANENT RESIDENCE.

       Notwithstanding any other provision of law, for purposes of 
     the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), 
     Rose-Marie Barbeau-Quinn, shall be held and considered to 
     have been lawfully admitted to the United States for 
     permanent residence as of the date of the enactment of this 
     Act upon payment of the required visa fees.

     SEC. 2. REDUCTION OF NUMBER OF AVAILABLE VISAS.

       Upon the granting of permanent residence to Rose-Marie 
     Barbeau-Quinn, as provided in this Act, the Secretary of 
     State shall instruct the proper officer to reduce by the 
     appropriate number during the current fiscal year the total 
     number of immigrant visas available to natives of the country 
     of the alien's birth under section 203(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1153(a)).
                                 ______
                                 
      By Mr. McCAIN (for himself, Mr. Moynihan, and Mr. Kerrey):
  S. 2510. A bill to establish the Social Security Protection, 
Preservation, and Reform Commission; to the Committee on Finance.


SOCIAL SECURITY PROTECTION, PRESERVATION, AND REFORM COMMISSION ACT OF 
                                  2000

 Mr. McCAIN. Mr. President, today I join with my friends and 
colleagues, Senators Bob Kerrey and Pat Moynihan, to introduce a very 
important bill that will serve as the catalyst for putting aside 
partisan politics and beginning the process of protecting, preserving 
and reforming the Social Security system.
  Our bill establishes principles and a process for Social Security 
reform. The bill sets forth broadly stated objectives for comprehensive 
reform of the Social Security system that should be supported by every 
one of us. It establishes a bipartisan Congressional Commission charged 
with developing a reform plan consistent with those objectives. The 
Commission is required to submit a detailed legislative proposal to 
Congress by September 2001, and the bill includes a process for 
expedited Congressional action on the Commission's recommendations by 
the end of next year.
  Mr. President, for far too long, Social Security has been used by 
politicians

[[Page S3525]]

on both sides of the aisle to polarize, manipulate and scare American 
voters. The mere mention of ``Social Security reform'' has become a 
lightning rod for the fears of retirees and workers alike about their 
financial futures.
  Seniors, particularly low-income seniors, are vulnerable to 
exaggerations and hyperbolic rhetoric about their retirement benefits. 
They are often frightened into believing they will be homeless, 
penniless and starving if Congress reforms Social Security. We all know 
that is simply not true. The benefits seniors receive today are not the 
issue--nobody wants to take them away. And it is disgraceful that some 
would stoop so low as to play on the fears of older Americans.
  The real issue driving Social Security reform--an issue that is only 
frightening when left unresolved--is how to strengthen and protect the 
system so that it is available for future retirees, without putting an 
unfair financial burden on current and future workers. We have wasted 
too much time on partisan politics when we should have been working 
together to find a solution to the financial problems facing our 
nation's retirement system. We can no longer afford to just spout 
rhetoric about the need for reform, then deliberately avoid taking any 
concrete action because of fears about how it may affect us in our next 
election.
  Social Security reform is not just a political problem; it is a 
serious economic problem for millions of Americans who are counting on 
a retirement system that is in dire financial straits. It's time to 
step up to our common responsibilities, not as Republicans or 
Democrats, but as servants of the American people.
  That is why I have joined with Senator Kerrey and Senator Moynihan to 
introduce this bill to require the Congress to act, and act soon, on 
legislation to preserve, protect, and reform Social Security. As my 
colleagues know, Bob Kerrey and Pat Moynihan have worked tirelessly for 
many years to highlight the urgent need for reform of the Social 
Security system, and they have succeeded in making the American people, 
if not the Congress, recognize that reforming our nation's retirement 
system must be a national priority.
  Our bill sets out a timetable for action on Social Security reform by 
the end of next year--November 2001.
  First, the bipartisan, bicameral Social Security Protection, 
Preservation, and Reform Commission must be appointed by February 1, 
2001, and begin work within a month. The Commission will be made up of 
12 Members of Congress, selected in equal numbers by the Party Leaders 
in both Houses. In addition, the Commission of Social Security will 
serve as an ex-officio, non-voting member.
  The Commission is given a reasonable period of time--six months--to 
conduct hearings, review the myriad of reform proposals already in the 
public domain, and research new ideas to put together a comprehensive 
reform plan that meets the objectives set out in this bill.
  Those broadly stated objectives represent the most basic requirements 
of meaningful Social Security reform:

       Guaranteed 75-year solvency of the system;
       Payment of all benefits to which retirees or workers are 
     entitled;
       A reasonable rate of return on payroll tax contributions 
     for all generations;
       An opportunity to participate in private investment 
     accounts;
       A ``lockbox'' for the Social Security Trust Funds to 
     protect from spending raids; and
       Use of non-Social Security surplus revenues to shore up the 
     system while implementing reform.

  The Commission is required to submit its recommendations to Congress 
in the form of a detailed legislative proposal by September 1, 2001, 
and the bill's expedited procedures are designed to ensure a final vote 
on Social Security reform by mid-November 2001. The strict time lines 
in the bill are designed to ensure that this vitally important issue is 
dealt with promptly--not pushed aside yet again, to be solved later.
  Too often, election year politics stand as an obstacle to any 
meaningful action in Congress. This proposal is carefully crafted to 
avoid this. The bill is designed to ensure that Congress can complete 
action on Social Security reform by the end of 2001, before being 
consumed by the political sparring of an election year.
  Mr. President, each year that reform of the Social Security system is 
postponed, restoring solvency to the trust funds becomes more expensive 
and places a greater financial burden on current and future workers. 
This ``principles and process'' legislation is, we believe, the only 
way to force Congress to pass a Social Security reform proposal that 
will protect and preserve our nation's retirement system and also allow 
more Americans to share in our nation's prosperity.

  Mr. President, let me take a moment to comment on the objectives, or 
principles, included in this bill. The objectives are intended as 
minimum guidelines for the Commission's work, not as a comprehensive 
blueprint for Social Security reform. We intentionally stated these 
objectives as broadly as possible in order to give the Commission the 
opportunity to develop a comprehensive plan without micro-managing 
their every decision.
  I believe very strongly that all promised benefits must be guaranteed 
under any reform proposal, both for those currently receiving Social 
Security benefits and those who are working and paying into Social 
Security today. In addition, I will work to ensure that Social Security 
reform does not unfairly burden today's workers by increasing payroll 
taxes from their current levels. And I do not believe it would be fair 
to further increase the eligibility age for receiving Social Security 
benefits.
  I am a strong proponent of allowing workers to invest a portion of 
their payroll taxes in personal retirement accounts that will provide a 
much greater return than the current Social Security system. This will 
afford all Americans the opportunity to have greater personal wealth 
creation in addition to a minimum Social Security benefit.
  Mr. President, I was very disappointed that Vice President Gore is 
continuing to use scare tactics about Social Security reform. Instead 
of putting the retirement needs of all Americans ahead of politics, the 
Vice President seems content to exacerbate the financial burden facing 
our children and grandchildren by ignoring the real structural problems 
of the program. By using politically intimidating rhetoric, the Vice 
President is seriously harming bipartisan efforts in Congress to put 
the needs of working Americans ahead of partisan politics.
  Let's look at the facts. The savings rate in America today is 
appallingly low. Many low-income families have no savings at all, and a 
large number of middle-income Americans have less than $2,000 in the 
bank.
  Because of this low savings rate, many Americans rely heavily on 
Social Security benefits for their retirement income. But economists 
agree that the rate of return on Social Security payroll tax 
contributions is abysmal--somewhere between 1 and 2 percent. Most 
workers today are unaware that the payroll taxes they contribute to 
Social Security may not provide anywhere near the income they expect 
when they retire. In fact, if nothing is done to reform the Social 
Security system, younger workers will receive nothing at all in return 
for paying more than 6 percent of their earnings every pay day into the 
Social Security system.
  Allowing every worker to invest a portion of the payroll taxes they 
already pay in a higher-yielding private account would make it possible 
for families on very tight budgets to save more for their futures.

  Even the most anemic savings account today realizes almost 3 percent, 
and secure short-term certificates of deposit return almost 6 percent. 
Over the past 50 years, the stock market has gained an average of more 
than 6 percent per year, with 20 to 30 percent gains in several recent 
years.
  Proposals to allow every American to choose to invest a portion of 
their Social Security payroll taxes in a low- to moderate-risk private 
investment account are designed to give even the lowest-income families 
the opportunity to share in our Nation's economic prosperity and create 
wealth for themselves and their children.
  In the long run, diverting a portion of payroll taxes to personal 
retirement accounts will bring more money into the Social Security 
system. In the short run, it will cost money. Using a significant 
portion of the non-Social

[[Page S3526]]

Security surplus revenues to shore up the Social Security system will 
ensure that current retirees receive their full benefits while reforms 
are implemented. At the same time, reducing the financial insolvency of 
the Social Security system through reform will also reduce our national 
debt.
  Mr. President, we all have opinions about how the Social Security 
program should or could be reformed, and I will have more to say about 
specific aspects of Social Security reform when I introduce a 
comprehensive reform bill later this month. Every one of these ideas 
deserves fair and full consideration as we work together to restore 
solvency to our Nation's retirement system. It is clear that we need a 
formal process and effective deadlines to review these ideas and 
develop and pass a real, meaningful plan to reform Social Security. 
That is exactly what this bill will achieve.
  Mr. President, Social Security is a sacred compact with workers and 
retirees that must be honored. The Congress has an obligation to 
develop a real, meaningful reform plan that strengthens and protects 
the Social Security program for our Nation's seniors without placing an 
unfair burden on America's workers. And we must do it sooner rather 
than later.
  I urge my colleagues to put aside partisan politics and work with us 
to get this process legislation passed and begin the business of 
reforming Social Security now.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2510

       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 ``Social Security Protection, 
     Preservation, and Reform Commission Act of 2000''.

               TITLE I--FINDINGS AND OBJECTIVES OF REFORM

     SEC. 101. FINDINGS.

       Congress makes the following findings:
       (1) Two-thirds of Americans depend on social security for 
     half or more of their income and 47 percent of beneficiaries 
     would be in poverty without their social security benefits.
       (2) Social security is an unbreakable compact between 
     workers and retirees across generations that must be honored 
     and needs to be sustained.
       (3) The social security trust funds will begin to run a 
     cash-flow deficit in 2015 and trust fund assets are expected 
     to be exhausted by 2037.
       (4) Americans covered by the social security program are 
     required to pay into a system from which they can expect 
     lower rates of return than earlier generations.
       (5) Each year that comprehensive reform of the social 
     security system is postponed, restoring actuarial solvency to 
     the trust funds becomes more expensive and places a greater 
     financial burden on current and future workers.

     SEC. 102. OBJECTIVES OF REFORM.

       Congress must act to reform the social security system so 
     that--
       (1) beneficiaries receive the benefits to which they are 
     entitled based on a fair and equitable reform of that system;
       (2) the long-term solvency of the social security system is 
     guaranteed for at least 75 years without any foreseeable 
     funding shortfall immediately following that period and cash-
     flow deficits and pressure on future general revenues to pay 
     benefits is significantly reduced;
       (3) every generation of workers is guaranteed a reasonable 
     comparable rate of return on all tax contributions;
       (4) all Americans, particularly low-income workers, are 
     provided the opportunity to share in our Nation's economic 
     prosperity and create wealth for themselves and future 
     generations through a private investment account under that 
     system;
       (5) revenues flowing into the Federal Old-Age, Survivors, 
     and Disability Trust Funds are protected from congressional 
     or other efforts to spend on nonsocial security related 
     purposes; and
       (6) resources are made available from surplus non-social 
     security revenues to preserve and protect the social security 
     system while implementing reform.

              TITLE II--SOCIAL SECURITY REFORM COMMISSION

     SEC. 201. ESTABLISHMENT OF COMMISSION.

       There is established a commission to be known as the Social 
     Security Protection, Preservation, and Reform Commission (in 
     this title referred to as the ``Commission'').

     SEC. 202. DUTIES.

       (a) Recommendations for Reform.--Not later than September 
     1, 2001, the Commission shall make specific recommendations 
     to Congress for reform of the social security system 
     established under title II of the Social Security Act (42 
     U.S.C. 401 et seq.) in a manner that incorporates the 
     objectives of reform set forth in section 102.
       (b) Legislative Language.--The recommendations required 
     under subsection (a) shall include legislative language 
     necessary for carrying out such recommendations. The 
     Commission shall develop such legislative language after 
     conducting such public hearings and consulting with such 
     public or private entities as the Commission considers 
     necessary and appropriate to make the recommendations 
     required under subsection (a).

     SEC. 203. MEMBERSHIP.

       (a) In General.--The Commission shall be composed of 13 
     members as follows:
       (1) Two congressional Members shall be appointed by the 
     Speaker of the House of Representatives.
       (2) Two congressional Members shall be appointed by the 
     Minority Leader of the House of Representatives.
       (3) Two congressional Members shall be appointed by the 
     Majority Leader of the Senate.
       (4) Two congressional Members shall be appointed by the 
     Minority Leader of the Senate.
       (5) The Chairman of the Committee on Finance of the Senate.
       (6) The Ranking Member of the Committee on Finance of the 
     Senate.
       (7) The Chairman of the Committee on Ways and Means of the 
     House of Representatives.
       (8) The Ranking Member of the Committee on Ways and Means 
     of the House of Representatives.
       (10) The Commissioner of Social Security, who shall be an 
     ex officio member of the Commission.
       (b) Deadline for Appointments.--The members of the 
     Commission shall be appointed not later than February 1, 
     2001.
       (c) Co-Chairmen.--The Commission shall designate 2 members 
     of the Commission to serve as Co-chairmen of the Commission.
       (d) Terms.--Each member of the Commission shall serve on 
     the Commission and, with respect to the Co-chairmen, in such 
     capacity, until the earlier of the date the Commission 
     terminates or September 16, 2001.
       (e) Vacancies.--Any vacancy in the membership of the 
     Commission shall be filled in the manner in which the 
     original appointment was made and shall not affect the power 
     of the remaining members to execute the duties of the 
     Commission.

     SEC. 204. QUORUM.

       A quorum shall consist of 7 voting members of the 
     Commission.

     SEC. 205. MEETINGS.

       (a) In General.--The Commission shall meet at the call of 
     the Co-chairmen or a majority of its members.
       (b) Initial Meeting.--The Commission shall conduct its 
     first meeting not later than March 1, 2001.
       (c) Open Meetings.--Each meeting of the Commission, other 
     than meetings in which classified information is to be 
     discussed, shall be open to the public.

     SEC. 206. POLICIES AND PROCEDURES.

       The Commission shall establish policies and procedures for 
     carrying out the functions of the Commission under this Act.

     SEC. 207. STAFF DIRECTOR AND STAFF.

       (a) Staff Director.--The Co-chairmen, with the advice and 
     consent of the members of the Commission, shall appoint a 
     Staff Director who is not otherwise, and has not during the 
     1-year period preceding the date of such appointment served 
     as, an officer or employee in the executive branch and who is 
     not and has not been a Member of Congress. The Staff Director 
     shall be paid at a rate not to exceed the rate of basic pay 
     payable for level IV of the Executive Schedule under section 
     5315 of title 5, United States Code.
       (b) Staff.--
       (1) In general.--The Staff Director, with the approval of 
     the Commission, may appoint and fix pay of additional 
     personnel. The Staff Director may take such appointments 
     without regard to the provisions of title 5, United States 
     Code, governing appointment in the competitive service, and 
     any personnel so appointed may be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     such title relating to classification and General Schedule 
     pay rates, except that an individual so appointed may not 
     receive pay in excess of the annual rate of basic pay payable 
     for level V of the Executive Schedule under section 5316 of 
     such title.
       (2) Detailees.--
       (A) In general.--Upon request of the Staff Director, the 
     head of any Federal department or agency may detail any of 
     the personnel of that department or agency to the Commission 
     to assist the Commission in carrying out its duties under 
     this Act. Not more than \1/3\ of the personnel employed by or 
     detailed to the Commission may be on detail from any Federal 
     agency.
       (B) Additional restrictions.--
       (i) Personnel.--Not more than \1/3\ of the personnel 
     detailed to the Commission may be on detail from any Federal 
     agency that deals directly or indirectly with the 
     administration of the social security system.
       (ii) Analysts.--Not more than \1/5\ of the professional 
     analysts of the Commission may be individuals detailed from a 
     Federal agency that deals directly or indirectly with the 
     administration of the social security system.
       (3) Experts and consultants.--The Commission may procure by 
     contract, to the extent funds are available, the temporary or 
     intermittent services of experts or consultants pursuant to 
     section 3109 of title 5, United States Code.

[[Page S3527]]

       (4) Federal officer or employee.--No member of a Federal 
     agency, and no officer or employee of a Federal agency may--
       (A) prepare any report concerning the effectiveness, 
     fitness, or efficiency of the performance on the staff of the 
     Commission of any individual detailed from a Federal agency 
     to that staff;
       (B) review the preparation of such report; or
       (C) approve or disapprove such a report.
       (5) Limitation on staff size.--Not more than 25 individuals 
     (including any detailees) may serve on the staff of the 
     Commission at any time.

     SEC. 208. POWERS.

       (a) Hearings and Other Activities.--For the purpose of 
     carrying out its duties, the Commission may hold such 
     hearings and undertake such other activities as the 
     Commission determines to be necessary to carry out its 
     duties.
       (b) Studies by General Accounting Office.--Upon the request 
     of the Commission, the Comptroller General shall conduct such 
     studies or investigations as the Commission determines to be 
     necessary to carry out its duties.
       (c) Cost Estimates by Congressional Budget Office.--Upon 
     the request of the Commission, the Director of the 
     Congressional Budget Office shall provide to the Commission 
     such cost estimates as the Commission determines to be 
     necessary to carry out its duties.
       (d) Technical Assistance.--Upon the request of the 
     Commission, the head of a Federal agency shall provide such 
     technical assistance to the Commission as the Commission 
     determines to be necessary to carry out its duties.
       (e) Use of Mails.--The Commission may use the United States 
     mails in the same manner and under the same conditions as 
     Federal agencies, and shall, for purposes of the frank, be 
     considered a commission of Congress as described in section 
     3215 of title 39, United States Code.
       (f) Obtaining Information.--The Commission may secure 
     directly from any Federal agency information necessary to 
     enable it to carry out its duties, if the information may be 
     disclosed under section 552 of title 5, United States Code. 
     Upon request of the Co-chairmen of the Commission, the head 
     of such agency shall furnish such information to the 
     Commission.
       (g) Administrative Support Services.--Upon the request of 
     the Commission, the Administrator of General Services shall 
     provide to the Commission on a reimbursable basis such 
     administrative support services as the Commission may 
     request.
       (h) Acceptance of Donations.--The Commission may accept, 
     use, and dispose of gifts or donations of services or 
     property.
       (i) Printing.--For purposes of costs relating to printing 
     and binding, including the costs of personnel detailed from 
     the Government Printing Office, the Commission shall be 
     deemed to be a committee of the Congress.

     SEC. 209. TERMINATION.

       The Commission shall terminate 15 days after the date of 
     submission of the recommendations for reform required under 
     section 202.

     SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title, such sums as may be necessary for the Commission to 
     carry out its duties under this title.

       TITLE III--CONGRESSIONAL CONSIDERATION OF RECOMMENDATIONS

     SEC. 301. CONGRESSIONAL CONSIDERATION OF RECOMMENDATIONS.

       (a) Introduction of Recommendations and Committee 
     Consideration.--
       (1) Introduction.--The legislative language transmitted 
     pursuant to section 202(b) with the recommendations for 
     reform of the Commission shall be in the form of a bill (in 
     this title referred to as the ``reform bill''). Such reform 
     bill shall be introduced in the House of Representatives by 
     the Speaker, and in the Senate, by the Majority Leader, 
     immediately upon receipt of the language and such reform bill 
     shall be referred to the appropriate committee of Congress 
     under paragraph (2). If the reform bill is not introduced in 
     accordance with the preceding sentence, the reform bill may 
     be introduced in either House of Congress by any member 
     thereof.
       (2) Committee consideration.--
       (A) Referral.--A reform bill introduced in the House of 
     Representatives shall be referred to the Committee on Ways 
     and Means of the House of Representatives. A reform bill 
     introduced in the Senate shall be referred to the Committee 
     on Finance of the Senate.
       (B) Reporting.--Not later than 30 days after the 
     introduction of the reform bill, the committee of Congress to 
     which the reform bill was referred shall report the bill or a 
     committee amendment thereto.
       (C) Discharge of committee.--If the committee to which is 
     referred a reform bill has not reported such reform bill (or 
     an identical reform bill) at the end of 30 calendar days 
     after its introduction or at the end of the first day after 
     there has been reported to the House involved a reform bill, 
     whichever is earlier, such committee shall be deemed to be 
     discharged from further consideration of such reform bill and 
     such reform bill shall be placed on the appropriate calendar 
     of the House involved.
       (b) Expedited Procedure.--
       (1) Consideration.--
       (A) In general.--Not later than 2 days after the date on 
     which a committee has been discharged from consideration of a 
     reform bill, the Speaker of the House of Representatives, or 
     the Speaker's designee, or the Majority Leader of the Senate, 
     or the Leader's designee, shall move to proceed to the 
     consideration of the committee amendment to the reform bill, 
     and if there is no such amendment, to the reform bill. It 
     shall also be in order for any member of the House of 
     Representatives or the Senate, respectively, to move to 
     proceed to the consideration of the reform bill at any time 
     after the conclusion of such 2-day period.
       (B) Points of order waived.--All points of order against 
     the reform bill (and against consideration of the reform 
     bill) are waived.
       (C) Motion to proceed.--A motion to proceed to the 
     consideration of the reform bill is highly privileged in the 
     House of Representatives and is privileged in the Senate and 
     is not debatable. The motion is not subject to amendment, to 
     a motion to postpone consideration of the reform bill, or to 
     a motion to proceed to the consideration of other business. A 
     motion to reconsider the vote by which the motion to proceed 
     is agreed to or not agreed to shall not be in order. If the 
     motion to proceed is agreed to, the House of Representatives 
     or the Senate, as the case may be, shall immediately proceed 
     to consideration of the reform bill without intervening 
     motion, order, or other business, and the reform bill shall 
     remain the unfinished business of the House of 
     Representatives or the Senate, as the case may be, until 
     disposed of.
       (D) Limited debate.--Debate on the reform bill and on all 
     debatable motions and appeals in connection therewith shall 
     be limited to not more than the lesser of 100 hours or 14 
     days, which shall be divided equally between those favoring 
     and those opposing the reform bill. A motion further to limit 
     debate on the reform bill is in order and not debatable.
       (E) Amendments.--
       (i) In general.--Subject to clause (ii), amendments to the 
     reform bill--

       (I) during consideration in the House of Representatives 
     shall be limited in accordance with a rule adopted by the 
     Committee on Rules of the House of Representatives; and
       (II) during consideration in the Senate shall be limited 
     to--

       (aa) one first degree amendment per member or that member's 
     designee with 1 hour of debate equally divided; and
       (bb) germane second degree amendments (without limit) with 
     30 minutes of debate equally divided.
       (ii) Leadership amendments.--The Speaker of the House of 
     Representatives and the Minority Leader of the House of 
     Representatives and the Majority Leader of the Senate and the 
     Minority Leader of the Senate may each offer 1 first degree 
     amendment (in addition to the amendments afforded such 
     members under clause (i)), with 4 hours of debate equally 
     divided on each such amendment offered. No second degree 
     amendments may be offered by the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, or the 
     Minority Leader of the Senate in their leadership capacities.
       (F) Vote on final passage.--Immediately following the 
     conclusion of the debate on the reform bill, and on all 
     amendments offered to the reform bill, and all votes required 
     on amendments offered to the reform bill, the vote on final 
     passage of the reform bill shall occur.
       (G) Other motions not in order.--A motion to postpone 
     consideration of the reform bill, a motion to proceed to the 
     consideration of other business, or a motion to recommit the 
     reform bill is not in order. A motion to reconsider the vote 
     by which the reform bill is agreed to or not agreed to is not 
     in order.
       (H) Appeals.--Appeals from the decisions of the Chair 
     relating to the application of the rules of the House of 
     Representatives or of the Senate, as the case may be, to the 
     procedure relating to the reform bill shall be decided 
     without debate.
       (2) Consideration by other house.--If, before the passage 
     by one House of the reform bill that was introduced in such 
     House, such House receives from the other House a reform bill 
     as passed by such other House--
       (A) the reform bill of the other House shall not be 
     referred to a committee and may only be considered for final 
     passage in the House that receives it under subparagraph (C);
       (B) the procedure in the House in receipt of the reform 
     bill of the other House, with respect to the reform bill that 
     was introduced in the House in receipt of the reform bill of 
     the other House, shall be the same as if no reform bill had 
     been received from the other House; and
       (C) notwithstanding subparagraph (B), the vote on final 
     passage shall be on the reform bill of the other House.
     Upon disposition of a reform bill that is received by one 
     House from the other House, it shall no longer be in order to 
     consider the reform bill that was introduced in the receiving 
     House.

       (3) Consideration in conference.--
       (A) Convening of conference.--
       (i) In general.--Immediately upon a final passage of the 
     reform bill that results in a disagreement between the two 
     Houses of Congress with respect to the bill, the conferees 
     described in clause (ii) shall be appointed and a conference 
     convened.
       (ii) Conferees described.--The conferees described in this 
     clause are the following:

[[Page S3528]]

       (I) The Speaker of the House of Representatives.
       (II) The Minority Leader of the House of Representatives.
       (III) The Majority Leader of the Senate.
       (IV) The Minority Leader of the Senate.
       (V) Each member of the Committee on Ways and Means of the 
     House of Representatives.
       (VI) Each member of the Committee on Finance of the Senate.

       (B) Deadline for report.--Not later than 14 days after the 
     date on which conferees are appointed, the conferees shall 
     file a report with the House of Representatives and the 
     Senate resolving the differences between the Houses on the 
     reform bill.
       (C) Limitation on scope.--A report filed under subparagraph 
     (B) shall be limited to resolution of the differences between 
     the Houses on the reform bill and shall not include any other 
     matter.
       (D) House consideration.--
       (i) In general.--Notwithstanding any other rule of the 
     House of Representatives, it shall be in order to immediately 
     consider a report of a committee of conference on the reform 
     bill filed in accordance with subparagraph (B).
       (ii) Debate.--Debate in the House of Representatives on the 
     conference report shall be limited to the lesser of 50 hours 
     or 7 days, equally divided and controlled by the Speaker of 
     the House of Representative and the Minority Leader of the 
     House of Representatives or their designees.
       (iii) Limitation on motions.--A motion to further limit 
     debate on the conference report is not debatable. A motion to 
     recommit the conference report is not in order, and it is not 
     in order to move to reconsider the vote by which the 
     conference report is agreed to or disagreed to.
       (iv) Vote on final passage.--A vote on final passage of the 
     conference report shall occur immediately at the conclusion 
     or yielding back of all time for debate on the conference 
     report.
       (E) Senate consideration.--
       (i) In general.--The motion to proceed to consideration in 
     the Senate of the conference report shall not be debatable 
     and the reading of such conference report shall be deemed to 
     have been waived.
       (ii) Debate.--Consideration in the Senate of the conference 
     report on a reform bill shall be limited to the lesser of 50 
     hours or 7 days, equally divided and controlled by the 
     Majority Leader and the Minority Leader or their designees.
       (iii) Limitation on motion to recommit.--A motion to 
     recommit the conference report is not in order.
       (4) Rules of the senate and house of representatives.--This 
     subsection is enacted by Congress--
       (A) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and is deemed to 
     be part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a bill, and it supersedes other 
     rules only to the extent that it is inconsistent with such 
     rules; and
       (B) with full recognition of the constitutional right of 
     either House to change the rules (so far as they relate to 
     the procedure of that House) at any time, in the same manner, 
     and to the same extent as in the case of any other rule of 
     that House.

  Mr. KERREY. Mr. President, I am joined by my esteemed colleagues 
Senator McCain and Senator Moynihan in introducing the Social Security 
Protection, Preservation, and Reform Commission Act of 1990''. I am 
honored to join these two distinguished colleagues in an effort to 
create a bipartisan and bicameral Congressional Commission to reform 
Social Security.
  I am pleased to join Senator McCain in a serious effort to provoke 
this body to move beyond demagoguery and toward action on the subject 
of Social Security reform. Senator McCain has had the unique benefit of 
spending the earlier part of this year talking to thousands of 
constituents from across America about their hopes and concerns during 
the course of his Presidential campaign. As Senator McCain has noted to 
me, a great majority of these people expressed particular concern for 
the future state of the Social Security program. Americans have intense 
feelings of patriotism where Social Security is concerned--and strongly 
support reworking and preserving this program for generations to come.
  My friend's commitment to an honest debate and a reform agenda has 
sparked the continued interest and attention of millions of Americans--
and his support of the Social Security reform cause makes the program's 
eventual reform all the more likely.
  I am also honored to be joining my dear friend Senator Daniel Patrick 
Moynihan in introducing this legislation. Senator Moynihan has perhaps 
the most distinguished record of accomplishment where Social Security 
is concerned of anyone in this body--perhaps even in this country. As a 
former member of the Greenspan Commission, which restored solvency to 
the Trust Funds in 1983, Senator Moynihan is a seasoned veteran of 
reform commissions--and we welcome his counsel on, and support of, this 
legislation. My dear friend's participation in the Greenspan Commission 
also reminds us of what can happen when Congress waits until the last 
possible moment to restore solvency to this important program. As my 
colleagues may remember, the 1983 Commission met to discuss reforms at 
a time when the program was in severe jeopardy--Social Security checks 
were at risk of not being sent out. Since the 1983 reforms were 
enacted, future insolvency has again plagued the program. Senator 
Moynihan has been leading the charge to ensure that Congress does not 
make the same mistake in waiting until 2037 to reform the program--he 
knows too well that fixing it now will alleviate great financial pain 
on future generations. I have been honored to co-sponsor two reform 
bills with Senator Moynihan--and I am honored to call him a friend. His 
wise leadership on this and other issues will be dearly missed when he 
retires at the close of this 106th Congress.

  I was skeptical at first about an effort to create a Congressional 
Commission to reform the Social Security program. But upon further 
consideration, I have reached the conclusion that a bicameral, 
bipartisan Congressional Commission is the only way to move beyond the 
polarizing partisanship and inflammatory rhetoric that stalls action on 
this important program.
  The Commission envisioned in our bill will include equal numbers of 
Republicans and Democrats, including the Chairs and Ranking Members of 
the Ways and Means and Finance Committees, and the Commissioner of 
Social Security as a non-voting, ex-officio member. Our bill also 
creates an expedited process for consideration of the Commission's 
reform bill in the House and Senate. The process is similar to 
reconciliation protections for budget and tax measures--and will 
prevent Members from exercising delaying tactics.
  Our bill also sets out a number of reform objectives for the 
Commission to meet, such as maintaining benefits for current 
beneficiaries, restoring Trust Fund solvency for at least 75-years, and 
including some form of wealth creation component as part of the Social 
Security program.
  I am particularly interested in encouraging this Commission to 
include some form of individual account provision--with special 
attention given to making the accounts and the program itself more 
progressive for low and moderate income individuals.
  As a Democrat, one of my greatest concerns is the growing wealth gap 
between the rich and poor. The latest Statistics of Income Bulletin 
from the IRS shows that the combined net worth of the top 4,400,000 
Americans was $6.7 trillion in 1995. In other words, the top 2.5% of 
our population held 27.4% of the nation's wealth in the mid-1990s. 
These statistics highlight why we should be concerned about the growing 
wealth gap. The ownership of wealth brings security to people's lives. 
The ownership of wealth opens up new opportunities. And the ownership 
of wealth transforms the way people view their futures.
  An individual with no financial assets--and no means to accumulate 
financial assets--cannot count on a secure retirement or ensure that 
his or her future health care needs will be met.
  Ownership of wealth is a much more reliable way of becoming 
financially secure in old age than promises by politicians to tax and 
transfer income. Ownership of wealth produces greater independence and 
happiness. The mal-distribution of wealth (the rich getting richer and 
the poor getting poorer) is not healthy for a liberal democracy and a 
free market economy such as ours. Wealth ownership is the only path to 
true security--and we must work to enact laws that provide low and 
moderate income families the opportunities and the tools to acquire 
wealth.
  We will never reach a stage in which all Americans are full 
participants in the growth of the American economy, unless we enact 
comprehensive pension reforms that will improve savings opportunities 
for low income workers, and modernize and improve the Social

[[Page S3529]]

Security program so that it becomes more than just a mechanism for 
transferring income.
  I look forward to a spirited and substantive debate on the subject of 
Social Security in the upcoming Presidential election. And I am hopeful 
that our Congressional Commission proposal can become the vehicle by 
which the next President can work with Congress to create a bipartisan 
consensus on Social Security reform.
                                 ______
                                 
      By Mr. MURKOWSKI (for himself and Mr. Stevens):
  S. 2511. A bill to establish the Kenai Mountains-Turnagain Arm 
National Heritage Area in the State of Alaska, and for other purposes; 
to the Committee on Energy and Natural Resources.


 kenai mountains-turnagain arm national heritage corridor area act of 
                                  2000

 Mr. MURKOWSKI. Mr. President, I rise today to introduce a bill 
to establish the Kenai Mountains-Turnagain Arm National Heritage Area 
in my State of Alaska.
  The Heritage Area, when enacted, will include the first leg of the 
Iditarod National Historic Trail and most of the Seward Highway 
National Scenic Byway. Through National Heritage designation these 
routes will be portrayed and interpreted as part of the whole picture 
of human history in the wider transportation corridor through the 
mountains, which includes early Native trade routes, connections by 
waterway, the railroad, and other trails and roadways.
  This proposal differs from the 16 existing National Heritage Areas. 
The fact that it would be one of a kind strengthens the case for 
designation.
  Unlike any of the existing National Heritage Areas, the Kenai 
Mountains-Turnagain Arm National Historic Corridor will highlight the 
experience of the western frontier--of transportation and settlement in 
a difficult landscape--of the gold rush and resource development in a 
remote area. These are the themes of the proposal--themes that formed 
our perception of ourselves as a nation. The proposed Heritage Area 
wonderfully expresses these themes.
  Within the proposed Heritage Area there are a number of small 
historic communities that developed around transportation and the gold 
rush. They are dwarfed by the sweeping landscapes of the region, by the 
magnificence of the mountains, and the dominance and strength of 
nature.
  Turnagain Arm, once a critical transportation link, has the world's 
second largest tidal range. Visitors can stand along the shore lines 
and actually watch 30-foot tides move in and out of the arm. On 
occasion, the low roar of an oncoming bore tide can be heard as a wall 
of water sweeps up the Turnagain.
  A traveler through the alpine valleys and mountain passes of the 
Heritage Area can see evidence of retreating glaciers, earthquake 
subsidence, and avalanches. Dall sheep, beluga whales, moose, bald 
eagles, trumpeter swans, and Artic terns give glimpses of their 
presence.
  Through this rugged terrain humans have developed transportation 
routes into South-central and Interior Alaska. Travel was channeled 
through the valleys and on the rivers and fjord-like lakes. First came 
Alaska Natives, establishing trading paths. Later the Russians, gold 
rush stampeders, and all types of people arrived seeking access into 
the resource-rich land. The famous Iditarod Trail to Nome, which was 
used to haul mail in and gold out, started at Seward.
  A series of starts and stops by railroad entrepreneurs eventually 
culminated in the completion of the railroad from Seward to Fairbanks 
by the federal government. President Harding boarded the train in 
Seward in 1923 to drive the golden spike at Nenana (and died on the 
boat returning to Seattle). It was only in the last half of this 
century that the highway from Seward to Anchorage was opened. Before 
then the small communities of the area were linked to the rest of 
Alaska by wagon trail, rail, and by boat across Turnagain Arm and the 
Kenai River.
  The Heritage Area contains one of the earliest mining regions in 
Alaska. Russians left evidence of their search for gold at Bear Creek 
near Hope. In 1895, discovery of a rich deposit at Canyon Creak 
precipitated the Turnagain Arm Gold Rush, predating the stampede to the 
Klondike.
  The early settlements and communities of the area are still very much 
as they were in the past. But, as in the early days, this is a region 
where ``nature is boss,'' and historic trails and evidence of mining 
history are often embedded and nearly hidden in the landscape. What can 
be seen stands as powerful testimony to the human fortitude, 
perseverance, and resourcefulness that is America's proudest heritage 
from the people who settled the Alaskan frontier.
  People living in the Kenai Mountains--Turnagain Arm areas share a 
sense that it is a special place. In part, this is simply because of 
the sheer natural beauty; but it is also because the Alaska frontier is 
relative recent. Memories of the times when the inhabitants were 
dependent on their own resources, and on each other, are still very 
much alive.
  Communities are small, but they are alive with volunteerism. All have 
active historical societies. Groups in Seward and Girdwood have 
organized to rebuild the Iditarod Trail. In the town of Hope citizens 
constructed a museum of mining history, building it themselves out of 
logs and donated materials. Local people have conducted historic 
building surveys, written books and short histories, collected and 
published old diaries, and created web pages to record and share the 
history of their communities. Seward, the corridor's gateway, has 
created a delightful array of visitor opportunities that display and 
interpret the region's natural setting, Native culture, and history. 
National Heritage Area designation would greatly encourage and expand 
these good efforts.
  Mr. President, it is important to note that this National Heritage 
Area is a local grass roots effort and it will remain a locally driven 
grass roots effort. Decisions will be made by locals, not by Federal 
bureaucrats. The only role of the Federal Government is to provide 
technical expertise, mostly in the areas of the interpretation of the 
many historic sites and tremendous natural resource features that are 
found throughout the entire region. There will be no additional land 
ownership by the Federal Government or by the local management entity 
that is charged with putting together a coordinated plan to interpret 
the Heritage Area. The Heritage Area is about local people working 
together.
  Mr. President, I ask unanimous consent the bill be printed in the 
Record and I urge my colleagues to support this legislation.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2511

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Kenai Mountains-Turnagain 
     Arm National Heritage Corridor Area Act of 2000''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the Kenai Mountains-Turnagain Arm transportation 
     corridor is a major gateway to Alaska and includes a range of 
     transportation routes used first by indigenous people who 
     were followed by pioneers who settled the nation's last 
     frontier;
       (2) the natural history and scenic splendor of the region 
     are equally outstanding; vistas of nature's power include 
     evidence of earthquake subsidence, recent avalanches, 
     retreating glaciers and tidal action along Turnagain Arm, 
     which has the world's second greatest tidal range;
       (3) the cultural landscape formed by indigenous people and 
     then by settlement, transportation and modern resource 
     development in this rugged and often treacherous natural 
     setting stands as powerful testimony to the human fortitude, 
     perseverance and resourcefulness that is America's proudest 
     heritage from the people who settled the frontier;
       (4) there is a national interest in recognizing, 
     preserving, promoting and interpreting these resources;
       (5) the Kenai Mountains-Turnagain Arm region is 
     geographically and culturally cohesive because it is defined 
     by a corridor of historic routes--trail, water, railroad, and 
     roadways through a distinct landscape of mountains, lakes and 
     fjords;
       (6) national significance of separate elements of the 
     region include, but are not limited to, the Iditarod National 
     Historic Trail, the Seward Highway National Scenic Byway and 
     the Alaska Railroad National Scenic Railroad;
       (7) national heritage area designation provides for the 
     interpretation of these routes, as well as the national 
     historic districts and numerous historic routes in the region 
     as

[[Page S3530]]

     part of the whole picture of human history in the wider 
     transportation corridor including early Native trade routes, 
     connections by waterway, mining trail and other routes;
       (8) national heritage area designation also provides 
     communities within the region with the motivation and means 
     for ``grass roots'' regional coordination and partnerships 
     with each other and with borough, State and federal agencies; 
     and
       (9) resolution and letters of support have been received 
     from the Kenai Peninsula Historical Association, the Seward 
     Historical Commission, the Seward City Council, the Hope and 
     Sunrise Historical Society, the Hope Chamber of Commerce, the 
     Alaska Association for Historic Preservation, the Cooper 
     Landing Community Club, the Alaska Wilderness Recreation and 
     Tourism Association, Anchorage Historic Properties, the 
     Anchorage Convention and Visitors Bureau, the Cook Inlet 
     Historical Society, the Moose Pass Sportsman's Club, the 
     Alaska Historical Commission, the Girdwood Board of 
     Supervisors, the Kenai River Special Management Area 
     Advisory Board, the Bird/Indian Community Council, the 
     Kenai Peninsula Borough Trails Commission, the Alaska 
     Division of Parks and Recreation, the Kenai Peninsula 
     Borough, the Kenai Peninsula Tourism Marketing Council, 
     and the Anchorage Municipal Assembly.
       (b) Purposes.--The purposes of this Act are--
       (1) to recognize, preserve and interpret the historic and 
     modern resource development and cultural landscapes of the 
     Kenai Mountains--Turnagain Arm historic transportation 
     corridor, and to promote and facilitate the public enjoyment 
     of these resources; and
       (2) to foster, through financial and technical assistance, 
     the development of cooperative planning and partnerships 
     among the communities and borough, state and federal 
     government entities.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Heritage area.--The term ``Heritage Area'' means the 
     Kenai Mountains--Turnagain Arm National Heritage Area 
     establish by section 4(a) of this Act.
       (2) Management entity.--The term ``management entity'' 
     means the 11 member Board of Directors of the Kenai 
     Mountains--Turnagain Arm National Area Commission.
       (3) Management plan.--The term ``management plan'' means 
     the management plan for the Heritage Area.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 4. KENAI MOUNTAINS--TURNAGAIN ARM NATIONAL HERITAGE 
                   AREA.

       (a) Establishment.--There is established the Kenai 
     Mountains--Turnagain Arm National Heritage Area.
       (b) Boundaries.--The Heritage Area shall comprise the lands 
     in the Kenai Mountains and upper Turnagain Arm region 
     generally depicted on the map entitled ``Kenai Peninsula/
     Turnagain Arm National Heritage Corridor'', numbered ``Map 
     #KMTA--1, and dated ``August 1999''. The map shall be on file 
     and available for public inspection in the offices of the 
     Alaska Regional Office of the National Park Service and in 
     the offices of the Alaska State Heritage Preservation 
     Officer.

     SEC. 5. MANAGEMENT ENTITY.

       (a) The management entity shall consist of 7 
     representatives, appointed by the Secretary from a list of 
     recommendations submitted by the Governor of Alaska, from the 
     communities of Seward, Lawing, Moose Pass, Cooper Landing, 
     Hope, Girdwood, Bird-Indian and 4 at-large representatives, 
     from such organizations as Native Associations, the Iditarod 
     Trail Committee, historical societies, visitor associations 
     and private or business entities. Upon appointment, the 
     Commission shall establish itself as a non-profit corporation 
     under laws of the State of Alaska.
       (1) Terms.--Members of the management entity appointed 
     under section 5(a) shall each serve for a term of 5 years, 
     except that of the members first appointed 3 shall serve for 
     a term of 4 years and 2 shall serve for a term of 3 years; 
     however, upon the expiration of his or her term, an appointed 
     member may continue to serve until his or her successor has 
     been appointed.
       (2) Vacancies.--Any vacancy in the Commission shall be 
     filled in the same manner in which the original appointment 
     was made, and any member appointed to fill a vacancy shall 
     serve for the remainder of that term for which his or her 
     predecessor was appointed.
       (b) Non-voting Ex-officio representatives, invited by the 
     non-profit corporation from such organizations as the State 
     Division of Parks and Outdoor Recreation, State Division 
     Mining, Land and Water, Forest Service, State Historic 
     Preservation Office, Kenai Peninsula Borough, Municipality of 
     Anchorage, Alaska Railroad, Alaska Department of 
     Transportation and the National Park Service.
       (c) Representation of ex-officio members in the non-profit 
     corporation shall be established under the by-laws of the 
     management entity.

     SEC. 6. AUTHORITIES AND DUTIES OF MANAGEMENT ENTITY.

       (a) Management Plan.--
       (1) In general.--Not later than 3 years after the Secretary 
     enters into a cooperative agreement with the management 
     entity, the management entity shall develop a management plan 
     for the Heritage Area, taking into consideration existing 
     federal, State, borough, and local plans.
       (2) Contents.--The management plan shall include, but not 
     be limited to--
       (A) comprehensive recommendations for conservation, 
     funding, management, and development of the Heritage Area;
       (B) a description of agreements on actions to be carried 
     out by government and private organizations to protect the 
     resources of the Heritage Area;
       (C) a list of specific and potential sources of funding to 
     protect, manage and develop the Heritage Area;
       (D) an inventory of the resources contained in the Heritage 
     Area: and
       (E) a description of the role and participation of other 
     Federal, State and local agencies that have jurisdiction on 
     lands within the Heritage Area.
       (b) Priorities.--The management entity shall given priority 
     to the implementation of actions, goals, and policies set 
     forth in the cooperative agreement with the Secretary and the 
     heritage plan, including assisting communities within the 
     region in--
       (1) carrying out programs which recognize important 
     resource values in the heritage corridor;
       (2) encouraging economic viability in the affected 
     communities;
       (3) establishing and maintaining interpretive exhibits in 
     the Heritage Area;
       (4) improving and interpreting heritage trails;
       (5) increasing public awareness and appreciation for the 
     natural, historical and cultural resources and modern 
     resource development of the Heritage Area;
       (6) restoring historic buildings and structures that are 
     located within the boundaries of the heritage corridor; and
       (7) ensuring that clear, consistent and appropriate signs 
     identifying public access points and sites of interest are 
     placed throughout the Heritage Area
       (c) Consideration of Interest of Local Groups.--Projects 
     incorporated in the heritage plan by the management entity 
     shall be initiated by local groups and developed with the 
     participation and support of the affected local communities. 
     Other organizations may submit projects or proposals to the 
     local groups for consideration.
       (d) Public Meetings.--The management entity shall conduct 2 
     or more public meetings each year regarding the initiation 
     and implementation of the management plan for the Heritage 
     Area. The management entity shall place a notice of each such 
     meeting in a newspaper of general circulation in the Heritage 
     Area and shall make the minutes of the meeting available to 
     the public.

     SEC. 7. DUTIES OF THE SECRETARY.

       (a) The Secretary, in consultation with the Governor of 
     Alaska, or his designee, is authorized to enter into a 
     cooperative agreement with the management entity. The 
     cooperative agreement shall be prepared with public 
     participation.
       In accordance with the terms and conditions of the 
     cooperative agreement and upon the request of the management 
     entity, subject to the availability of funds, the Secretary 
     shall provide administrative, technical, financial, design, 
     development and operations assistance to carry out the 
     purposes of this Act.

     SEC. 8. SAVINGS PROVISIONS.

       (a) Regulatory Authority.--Nothing in this Act shall be 
     construed to grant powers of zoning or management of land use 
     to the management entity of the Heritage Area.
       (b) Effect on Authority of Governments.--Nothing in this 
     Act shall be construed to modify, enlarge or diminish any 
     authority of the Federal, State or local governments to 
     regulate any use of land as provided for by law or 
     regulation.
       (c) Effect on Business.--Nothing in this Act shall be 
     construed to obstruct or limit business activity on private 
     development or resource development activities.

     SEC. 9. PROHIBITION ON THE ACQUISITION OR REAL PROPERTY.

       (a) The management entity may not use funds appropriated to 
     carry out the purposes of this Act to acquire real property 
     or interest in real property.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       (a) First Year.--For the first year $350,000 is authorized 
     to be appropriated to carry out the purposes of this Act, and 
     is made available upon the Secretary and the management 
     entity completing a cooperative agreement.
       (b) In General.--There is authorized to be appropriated not 
     more than $1,000,000 to carry out the purposes of this Act 
     for any fiscal year after the first year. Not more than 
     $10,000,000, in the aggregate, may be appropriated for the 
     Heritage Area.
       (c) Matching Funds.--Federal funding provided under this 
     Act shall be matched at least 25 percent by other funds or 
     in-kind services.
       (d) Sunset Provision.--The Secretary may not make any grant 
     or provide any assistance under this Act beyond 15 years from 
     the date that the Secretary and management entity complete a 
     cooperative agreement.
                                 ______
                                 
      By Mr. MOYNIHAN (for himself and Mr. Schumer):
  S. 2512. A bill to convey certain Federal properties on Governors 
Island, New York; to the Committee on Energy and Natural Resources.


               governors island preservation act of 2000

 Mr. MOYNIHAN. Mr. President, I rise with my distinguished 
colleague and fellow New Yorker, Senator Schumer,

[[Page S3531]]

to introduce the ``Governors Island Preservation Act of 2000.'' This 
bill will establish the Governors Island National Monument preserving 
two of New York Harbor's earliest fortifications, Fort Jay and Castle 
Williams. The balance of the property will be conveyed to the State of 
New York. New York City Mayor Rudolph W. Giuliani and New York State 
Governor George E. Pataki have developed a plan for the reuse of 
Governors Island. Their agreement has helped to make this bill 
possible, and both deserve much credit.
  Congress stipulated in the Balanced Budget Act of 1997 that Governors 
Island be sold ``at fair market value'' no sooner than Fiscal Year 
2002. Without the benefit of an appraisal, the Congressional Budget 
Office determined its value to be somewhere between $250 million and $1 
billion. As Congress continued its work on the Balanced Budget Act of 
1997, $500 million of Federal revenue was identified in Fiscal Year 
2002 through the sale of Governors Island. A fantasy perhaps, but no 
matter, the money had been found.
  Governors Island has played a significant role in every major 
military conflict from the American Revolution through World War II. In 
April of 1776, General Israel Putnam and 1,000 officers arrived on 
Governors Island and began erecting fortifications. Three months later, 
the guns at Governors Island prevented Admiral Howe's 400 ships and 
Lord Cornwallis' army--32,000 men strong--from crushing General George 
Washington's badly overwhelmed forces during the Battle of Long Island. 
Outflanked in Brooklyn, Washington's men retreated to the island of 
Manhattan across the East River under the cover of the Governors 
Island's guns. At the risk of falling into what historians term a 
``teleological trap,'' I would suggest that the Revolution could well 
have ended right then and there.
  During the War of 1812, the guns at the ``cheese-box'' shaped Castle 
Williams--and those at the Southwest Battery--dissuaded the British 
from mounting a direct attack on New York City, then the Nation's 
principal seaport.
  During the Civil War, Governors Island served as the primary Eastern 
Seaboard recruiting depot for Union soldiers. Nearly 5,000 Union 
draftees and volunteers were stationed there. Its inaccessibility 
proved useful for garrisoning the most recalcitrant of Confederate 
soldiers, who were confined both in Castle Williams and Fort Jay. Only 
one, Captain William Robert Webb, managed to escape. It will give my 
colleagues some measure of satisfaction to learn that this artful rebel 
was later appointed U.S. Senator from Tennessee.

  After the U.S. Congress declared war with Germany and Austria-Hungary 
on April 6, 1917, Governors Island became an embarkation point for the 
war effort. Several years earlier, the Island was expanded to its 
current 172-acre size by the excavation of the Lexington Avenue Subway 
line, which generated over 4.7 million tons of fill. The additional 
space permitted the construction of over 70 buildings providing a 
combined total of 30 million square feet of storage space. As the War 
escalated, estimates place the value of goods transported from 
Governors Island to the European theater at over $1 million per day--in 
1917 dollars.
  More than 20 years later, the famed General Hugh Drum commanded the 
First Army from Governors Island as the United States prepared for the 
Second World War. Once war was declared, Governors Island served as the 
headquarters for the Eastern Defense Command, which was tasked with 
protecting the Eastern Seaboard from Nazi attack.
  In 1966, the Coast Guard assumed control of Governors Island, and 
remained there for 30 years. After lighting the refurbished Statue of 
Liberty from Governors Island on July 4, 1986, President Reagan grew 
fond of Governors Island. On December 7, 1988, he chose the Admiral's 
House on Governors Island to meet Soviet Premier Mikhail S. Gorbachev 
to present each other with the Articles of Ratification of the 
Intermediate Nuclear Forces Treaty.
  It is inconceivable that Congress would permit this site, so rich in 
history, to be recklessly sold to the highest bidder.
  In January of this year, Governor Pataki and Mayor Giuliani announced 
an agreement on a preservation plan for Governors Island. The Governors 
Island Preservation Act is based upon that plan and calls for the 
establishment of the Governors Island National Monument to be comprised 
of Fort Jay and Castle Williams (so named after Lt. Col. Jonathan 
Williams, the first superintendent of West Point). Once the Monument is 
established, all of the historic New York Harbor forts--Fort Wood (the 
base of the Statue of Liberty), the Southwest Battery (now Castle 
Clinton National Monument), and Fort Gibson (partially demolished to 
provide for the construction of Ellis Island)--will be within the 
National Park Service inventory.
  The remaining portions of the Island will be conveyed to the Empire 
State Development Corporation, as agreed to by Mayor Giuliani and 
Governor Pataki. Their plan will incorporate a public park, athletic 
fields, a museum dedicated to the history and ecology of the Hudson 
River and New York Harbor, a family center modeled after Colonial 
Williamsburg, a conference center, and a hotel. After 200 years of 
Federal occupation, Governors Island will at last be open to the 
public.
  I thank the chair and I urge my colleagues to support this important 
legislation.
  Mr. SCHUMER. Mr. President, I would like to offer a few brief remarks 
to underscore several of the points that my colleague, Senator 
Moynihan, made when he introduced the ``Governors Island Preservation 
Act of 2000,'' a bill I gladly cosponsored.
  The first point is that Governors Island is truly a national 
treasure. It has played a significant role in nearly every American 
battle from the Revolution through World War II. During the War of 
1812, it is credited with preventing a direct British attack on the 
City of New York--then the Nation's principal seaport. It served as the 
Union's foremost recruiting depot and as a Confederate prison during 
the Civil War.
  The second point, Mr. President, is that its historical structures 
have been placed in no small degree of danger by the statutorily 
mandated Fiscal Year 2002 sale date. If the Island should be sold then 
``at fair market value,'' there simply is no guarantee the Castle 
Williams, Fort Jay, Building 400--a McKim, Meade & White masterpiece 
thought to be the largest single Army barrack ever constructed, the 
1708 Governor's house, and the entire Governors Island National 
Historic Landmark District will be protected. When the Balanced Budget 
Act of 1997 was being negotiated, Congress faced seemingly intractable, 
structural deficits. We had to make a great many difficult and, if I 
may, extreme choices to bring the Federal budget into balance. Three 
years later, our circumstances are quite different. Fiscal austerity 
has paid its dividends and we are approaching an era of surpluses much 
sooner that we might have otherwise imagined. Should we still be 
proposing to sell off such an important piece of American history?
  Finally, Mr. President, my colleague mentioned the issue of fairness. 
New York gave Governors Island to the national government in 1800. No 
complaints. The British and the French were then poised to attack our 
young nation. Now the Federal government has no use for Governors 
Island--the Coast Guard found it too expensive to maintain--it is only 
right that the people of New York get their property back. The 
Governors Island Preservation Act of 2000 will do just that. In 
addition, it will establish the Governors Island National Monument 
which will provide all Americans--for the first time--with the 
opportunity to learn of the Island's rich contributions to American 
history while experiencing the spectacular views of New York Harbor 
from this idyllic setting.
  Mr. President, I urge my colleagues to support this bill.
                                 ______
                                 
      By Mr. LEAHY (for himself, Mr. Sarbanes, Mr. Robb, Mr. Dodd. Mr. 
        Kerry, Mr. Bryan, Mr. Edwards, Mr. Durbin, Mr. Harkin, and Mrs. 
        Feinstein):
  S. 2513. A bill to strengthen control by consumers over the use and 
disclosure of their personal financial and health information by 
financial institutions, and for other purposes to the committee on 
Banking Housing, and Urban Affairs.

[[Page S3532]]

              financial information privacy protection act

  Mr. LEAHY. Mr. President, I am pleased today to introduce the 
Financial Information Privacy Protection Act of 2000, which was crafted 
by President Clinton and Vice President Gore. I am delighted to be 
joined by Senator Sarbanes, the Ranking Member of the Senate Banking 
Committee, who is a real leader in the Senate on protecting personal 
financial information. I am also pleased that Senators Robb, Dodd, 
Kerry, Bryan, Edwards, Durbin, Harkin and Feinstein are original 
cosponsors of this legislation to protect the financial privacy of all 
Americans.
  Last November, President Clinton signed into law the landmark 
Financial Modernization Act of 1999, which updates our financial laws 
and opens up the financial services industry to become more 
competitive, both at home and abroad. Many of my colleagues and I 
supported that legislation because we believe it will benefit 
businesses and consumers. It will make it easier for banking, 
securities, and insurance firms to consolidate their services, cut 
expenses and offer more products at a lower cost to all. But it also 
raises new concerns about our financial privacy.
  New conglomerates in the financial services industry may now offer a 
widening variety of services, each of which may require a customer to 
provide financial, medical or other personal information. Nothing in 
the new law prevents these new subsidiaries or affiliates of financial 
conglomerates from sharing this information for uses beyond those the 
customer thought he or she was providing it. For example, the new law 
has no requirement for the consumer to control whether these new 
financial subsidiaries or affiliates sell, share, or publish 
information on savings account balances, certificates of deposit 
maturity dates and balances, stock and mutual fund purchases and sales, 
life insurance payouts or health insurance claims. That is wrong.
  When President Clinton signed the financial modernization bill last 
year, he directed the National Economic Council to work with the 
Treasury Department and Office of Management and Budget to craft a 
legislative proposal to protect financial privacy in the new financial 
services marketplace. The result of that process is the bill we are 
introducing today.
  I believe the Financial Information Privacy Protection Act of 2000 
should serve as the foundation for model financial privacy legislation 
that Congress enacts into law this year. This bill is a common sense 
approach that can attract both consumers and the industry. It sands off 
the extremes at both ends of the issue. We need a catalyst to bring 
both sides together, and this bill can do it.
  Privacy is one of our most vulnerable rights in the information age. 
Digitalization of information offers tremendous benefits but also new 
threats. Some in Congress are content to punt the privacy issue down 
the field for another year. The public disagrees. People know that the 
longer we dawdle, the harder it will be to halt the erosion of privacy. 
A year is an eternity in the digital age.
  The right of privacy is a personal and fundamental right protected by 
the Constitution of the United States. But today, the American people 
are growing more and more concerned over encroachments on their 
personal privacy. To return personal financial privacy to the control 
of the consumer, the Administration's financial privacy legislation 
would create the following enforceable rights in Federal law.
  New Right To Opt-out of Information Sharing By Affiliates. The new 
financial modernization law permits consumers to say no to information 
sharing, selling or publishing among third parties in many cases, but 
not among affiliated firms. The Financial Information Privacy 
Protection Act of 2000 would require financial conglomerates, which 
will only grow under the new modernization law, to expand this 
protection to give consumers the right to notify it (opt-out) to stop 
all information sharing, selling or publishing of personal financial 
information among all third parties and affiliates.
  New Right For Consumers To Opt-In For Sharing of Medical Information 
and Personal Spending Habits. The Financial Information Privacy 
Protection Act of 2000 would require financial firms to get the 
affirmative consent (opt-in) of consumers before a firm could gain 
access to medical information within a financial conglomerate or share 
detailed information about a consumer's personal spending habits.
  New Right To Access and Correct Financial Information. The Financial 
Information Privacy Protection Act of 2000 would give consumers the 
right to review and correct their financial records, just like 
consumers today may review and correct their credit reports.
  New Right To Privacy Policy Up Front. The Financial Information 
Privacy Protection Act of 2000 would require financial firms to provide 
their privacy policies to consumers before committing to a customer 
relationship, not after. In addition, the bill's new rights would be 
enforced by federal banking regulators, the Federal Trade Commission 
and state attorney generals.
  As President Clinton warned all Americans: ``Although consumers put a 
great value on privacy of their financial records, our laws have not 
caught up to technological developments that make it possible and 
potentially profitable for companies to share financial data in new 
ways. Consumers who undergo physical exams to obtain insurance, for 
example, should not have to fear the information will be used to lower 
their credit card limits or deny them mortgages.'' I strongly agree.
  Unfortunately, if you have a checking account, you may have a 
financial privacy problem. Your bank may sell or share with business 
allies information about who you are writing checks to, when, and for 
how much. And even if you tell your bank to stop, it can ignore you 
under current law. This legislation returns to consumers the power to 
stop the selling or sharing of personal financial information.
  Americans ought to be able to enjoy the exciting innovations of this 
burgeoning information era without losing control over the use of their 
financial information. The Financial Information Privacy Protection Act 
of 2000 updates United States privacy laws to provide these fundamental 
protections of personal financial information in the evolving financial 
services industry. I urge my colleagues to support it.
  Mr. President, I ask unanimous consent that the full text of the 
Financial Information Privacy Protection Act of 2000 and a section-by-
section analysis of the bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2513

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Financial 
     Information Privacy Protection Act of 2000''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Opt-out requirement for disclosure to affiliates and 
              nonaffiliated third parties.
Sec. 3. Restricting the transfer of information about personal spending 
              habits.
Sec. 4. Restricting the use of health information in making credit and 
              other financial decisions.
Sec. 5. Limits on redisclosure and reuse of information.
Sec. 6. Consumer rights to access and correct information.
Sec. 7. Improved enforcement authority.
Sec. 8. Enhanced disclosure of privacy policies.
Sec. 9. Limit on disclosure of account numbers.
Sec. 10. General exceptions.
Sec. 11. Definitions.
Sec. 12. Issuance of implementing regulations.
Sec. 13. FTC rulemaking authority under the Fair Credit Reporting Act.

     SEC. 2. OPT-OUT REQUIREMENT FOR DISCLOSURE TO AFFILIATES AND 
                   NONAFFILIATED THIRD PARTIES.

       Section 502(a) of the Gramm-Leach-Bliley Act (15 U.S.C. 
     6802(a)) is amended to read as follows:
       ``(a) Disclosure of Nonpublic Personal Information.--Except 
     as otherwise provided in this subtitle, a financial 
     institution may not disclose any nonpublic personal 
     information to an affiliate or a nonaffiliated third party 
     unless such financial institution--
       ``(1) has provided to the consumer a clear and conspicuous 
     notice, in writing or electronic form or other form permitted 
     by the regulations implementing this subtitle, of the 
     categories of information that may be disclosed to the--
       ``(A) affiliate; or
       ``(B) nonaffiliated third party;

[[Page S3533]]

       ``(2) has given the consumer an opportunity, before the 
     time that such information is initially disclosed, to direct 
     that such information not be disclosed to such--
       ``(A) affiliate; or
       ``(B) nonaffiliated third party; and
       ``(3) has given the consumer the ability to exercise that 
     nondisclosure option through the same method of communication 
     by which the consumer received the notice described in 
     paragraph (1) or another method at least as convenient to the 
     consumer, and an explanation of how the consumer can exercise 
     such option.''.

     SEC. 3. RESTRICTING THE TRANSFER OF INFORMATION ABOUT 
                   PERSONAL SPENDING HABITS.

       Section 502(b) of the Gramm-Leach-Bliley Act (15 U.S.C. 
     6802(b)) is amended to read as follows:
       ``(b) Restriction on the Transfer of Information About 
     Personal Spending Habits.--
       ``(1) In general.--Notwithstanding subsection (a), if a 
     financial institution provides a service to a consumer 
     through which the consumer makes or receives payments or 
     transfers by check, debit card, credit card, or other similar 
     instrument, the financial institution shall not transfer to 
     an affiliate or a nonaffiliated third party--
       ``(A) an individualized list of that consumer's 
     transactions or an individualized description of that 
     consumer's interests, preferences, or other characteristics; 
     or
       ``(B) any such list or description constructed in response 
     to an inquiry about a specific, named individual;
     if the list or description is derived from information 
     collected in the course of providing that service.
       ``(2) Restriction on transfer of aggregate lists containing 
     certain health information.--Notwithstanding subsection (a), 
     a financial institution shall not transfer to an affiliate or 
     a nonaffiliated third party any aggregate list of consumers 
     containing or derived from individually identifiable health 
     information.
       ``(3) Exceptions.--
       ``(A) In general.--The financial institution may disclose 
     the information described in paragraph (1) or (2) to an 
     affiliate or a nonaffiliated third party if such financial 
     institution--
       ``(i) has clearly and conspicuously requested in writing or 
     in electronic form or other form permitted by the regulations 
     implementing this subtitle, that the consumer affirmatively 
     consent to such disclosure; and
       ``(ii) has obtained from the consumer such affirmative 
     consent and such consent has not been withdrawn.
       ``(B) Rule of construction.--This subsection shall not be 
     construed as preventing a financial institution from 
     transferring the information described in paragraph (1) or 
     (2) to an affiliate or a nonaffiliated third party for the 
     purposes described in paragraph (1), (2), (3), (5), (7), (8), 
     (9), or (10) of subsection (f).
       ``(C) Scope of application.--Paragraph (1) shall not apply 
     to the transfer of aggregate lists of consumers.''.

     SEC. 4. RESTRICTING THE USE OF HEALTH INFORMATION IN MAKING 
                   CREDIT AND OTHER FINANCIAL DECISIONS.

       (a) Restriction on Use of Consumer Health Information.--
     Section 502(c) of the Gramm-Leach-Bliley Act (15 U.S.C. 
     6802(c)) is amended to read as follows:
       ``(c) Use of Consumer Health Information Available From 
     Affiliates and nonaffiliated Third Parties.--In deciding 
     whether, or on what terms, to offer, provide, or continue to 
     provide a financial product or service to a consumer, a 
     financial institution shall not obtain or receive 
     individually identifiable health information about the 
     consumer from an affiliate or nonaffiliated third party, or 
     evaluate or otherwise consider any such information, unless 
     the financial institution--
       ``(1) has clearly and conspicuously requested in writing or 
     in electronic form or other form permitted by the regulations 
     implementing this subtitle, that the consumer affirmatively 
     consent to the transfer and use of that information with 
     respect to a particular financial product or service;
       ``(2) has obtained from the consumer such affirmative 
     consent and such consent has not been withdrawn; and
       ``(3) requires the same health information about all 
     consumers as a condition for receiving the financial product 
     or service.''.
       (b) Existing Protections For Health Information Not 
     Affected.--Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 
     6801 et seq.) is amended by adding after section 510 the 
     following new section:

     ``SEC. 511. RELATION TO STANDARDS ESTABLISHED UNDER THE 
                   HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY 
                   ACT OF 1996.

       ``Nothing in this subtitle shall be construed as--
       ``(1) modifying, limiting, or superseding standards 
     governing the privacy and security of individually 
     identifiable health information promulgated by the Secretary 
     of Health and Human Services under sections 262(a) and 264 of 
     the Health Insurance Portability and Accountability Act of 
     1996; or
       ``(2) authorizing the use or disclosure of individually 
     identifiable health information in a manner other than as 
     permitted by other applicable law.''.
       (c) Definition of Individually Identifiable Health 
     Information.--Section 509 of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6809) is amended by adding at the end the following 
     new paragraph:
       ``(12) Individually identifiable health information.--The 
     term `individually identifiable health information' means any 
     information, including demographic information obtained from 
     or about an individual, that is described in section 
     1171(6)(B) of the Social Security Act.''.
       (d) Technical and Conforming Amendment.--Section 505(a)(6) 
     of the Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)(6)) is 
     amended by inserting before the period at the end ``to the 
     extent the provisions of such section are not inconsistent 
     with the provisions of this subtitle''.

     SEC. 5. LIMITS ON REDISCLOSURE AND REUSE OF INFORMATION.

       Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802) 
     is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Limits on Redisclosure and Reuse of Information.--
       ``(1) In general.--An affiliate or a nonaffiliated third 
     party that receives nonpublic personal information from a 
     financial institution shall not disclose such information to 
     any other person unless such disclosure would be lawful if 
     made directly to such other person by the financial 
     institution.
       ``(2) Disclosure under a general exception.--
     Notwithstanding paragraph (1), any person that receives 
     nonpublic personal information from a financial institution 
     in accordance with one of the general exceptions in 
     subsection (f) may use or disclose such information only--
       ``(A) as permitted under that general exception; or
       ``(B) under another general exception in subsection (f), if 
     necessary to carry out the purpose for which the information 
     was disclosed by the financial institution.''.

     SEC. 6. CONSUMER RIGHTS TO ACCESS AND CORRECT INFORMATION.

       Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et 
     seq.) is amended by adding after section 511 (as added by 
     section 4(b) of this Act), the following new section:

     ``SEC. 512. ACCESS TO AND CORRECTION OF INFORMATION.

       ``(a) Access.--
       (1) In general.--Upon the request of a consumer, a 
     financial institution shall make available to the consumer 
     information about the consumer that is under the control of, 
     and reasonably available to, the financial institution.
       ``(2) Exceptions.--Notwithstanding paragraph (1), a 
     financial institution--
       ``(A) shall not be required to disclose to a consumer any 
     confidential commercial information, such as an algorithm 
     used to derive credit scores or other risk scores or 
     predictors;
       ``(B) shall not be required to create new records in order 
     to comply with the consumer's request;
       ``(C) shall not be required to disclose to a consumer any 
     information assembled by the financial institution, in a 
     particular matter, as part of the financial institution's 
     efforts to comply with laws preventing fraud, money 
     laundering, or other unlawful conduct; and
       ``(D) shall not disclose any information required to be 
     kept confidential by any other Federal law.
       ``(b) Correction.--A financial institution shall provide a 
     consumer the opportunity to dispute the accuracy of any 
     information disclosed to the consumer pursuant to subsection 
     (a), and to present evidence thereon. A financial institution 
     shall correct or delete material information identified by a 
     consumer that is materially incomplete or inaccurate.
       ``(c) Coordination and Consultation.--In prescribing 
     regulations implementing this section, the Federal agencies 
     specified in section 504(a) shall consult with one another to 
     ensure that the rules--
       ``(1) impose consistent requirements on the financial 
     institutions under their respective jurisdictions;
       ``(2) take into account conditions under which financial 
     institutions do business both in the United States and in 
     other countries; and
       ``(3) are consistent with the principle of technology 
     neutrality.
       ``(d) Charges For Disclosures.--A financial institution may 
     impose a reasonable charge for making a disclosure under this 
     section, which charge must be disclosed to the consumer 
     before making the disclosure. ''.

     SEC. 7. IMPROVED ENFORCEMENT AUTHORITY.

       (a) Compliance With Privacy Policy.--Section 503 of the 
     Gramm-Leach-Bliley Act (15 U.S.C. 6803) is amended by adding 
     at the end the following new subsection:
       ``(c) Compliance With Privacy Policy.--A financial 
     institution's failure to comply with any of its policies or 
     practices disclosed to a consumer under this section 
     constitutes a violation of the requirements of this 
     section.''.
       (b) Unfair and Deceptive Trade Practice.--Section 505(a)(7) 
     of the Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)(7)) is 
     amended by adding at the end the following new sentence: ``A 
     violation of any requirement of this subtitle, or the 
     regulations of the Federal Trade Commission prescribed under 
     this subtitle, by a financial institution or other person 
     described in this paragraph shall constitute an unfair or 
     deceptive act or practice in commerce in violation of section 
     5(a) of the Federal Trade Commission Act.''.

[[Page S3534]]

       (c) Supplemental State Enforcement For FTC Regulated 
     Entities.--Section 505 of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6805) is amended by adding at the end the following 
     new subsection:
       ``(e) State Action For Violations.--
       ``(1) Authority of the States.--In addition to such other 
     remedies as are provided under State law, if the attorney 
     general of a State, or an officer authorized by the State, 
     has reason to believe that any financial institution or other 
     person described in section 505(a)(7) has violated or is 
     violating this subtitle or the regulations prescribed 
     thereunder by the Federal Trade Commission, the State may--
       ``(A) bring an action on behalf of the residents of the 
     State to enjoin such violation in any appropriate United 
     States district court or in any other court of competent 
     jurisdiction; and
       ``(B) bring an action on behalf of the residents of the 
     State to enforce compliance with this subtitle and the 
     regulations prescribed thereunder by the Federal Trade 
     Commission, to obtain damages, restitution, or other 
     compensation on behalf of the residents of such State, or to 
     obtain such further and other relief as the court may deem 
     appropriate.
       ``(2) Rights of the federal trade commission.--The State 
     shall serve prior written notice of any action under 
     paragraph (1) upon the Federal Trade Commission and shall 
     provide the Commission with a copy of its complaint; provided 
     that, if such prior notice is not feasible, the State shall 
     serve such notice immediately upon instituting such action. 
     The Federal Trade Commission shall have the right--
       ``(A) to move to stay the action, pending the final 
     disposition of a pending Federal matter as described in 
     paragraph (4);
       ``(B) to intervene in an action under paragraph (1);
       ``(C) upon so intervening, to be heard on all matters 
     arising therein;
       ``(D) to remove the action to the appropriate United States 
     district court; and
       ``(E) to file petitions for appeal.
       ``(3) Investigatory powers.--For purposes of bringing any 
     action under this subsection, nothing in this subsection 
     shall prevent the attorney general, or officers of such State 
     who are authorized by such State to bring such actions, from 
     exercising the powers conferred on the attorney general or 
     such officers by the laws of such State to conduct 
     investigations or to administer oaths or affirmations or to 
     compel the attendance of witnesses or the production of 
     documentary and other evidence.
       ``(4) Limitation on state action while federal action is 
     pending.--If the Federal Trade Commission has instituted an 
     action for a violation of this subtitle, no State may, during 
     the pendency of such action, bring an action under this 
     section against any defendant named in the complaint of the 
     Commission for any violation of this subtitle that is alleged 
     in that complaint.''.
       (d) State Action For Violations of Ban on Pretext 
     Calling.--Section 522 of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6822) is amended by adding at the end the following 
     new subsection:
       ``(c) State Action For Violations.--
       ``(1) Authority of the states.--In addition to such other 
     remedies as are provided under State law, if the attorney 
     general of a State, or an officer authorized by the State, 
     has reason to believe that any person (other than a person 
     described in subsection (b)(1)) has violated or is violating 
     this subtitle, the State may--
       ``(A) bring an action on behalf of the residents of the 
     State to enjoin such violation in any appropriate United 
     States district court or in any other court of competent 
     jurisdiction; and
       ``(B) bring an action on behalf of the residents of the 
     State to enforce compliance with this subtitle, to obtain 
     damages, restitution, or other compensation on behalf of the 
     residents of such State, or to obtain such further and other 
     relief as the court may deem appropriate.
       ``(2) Rights of federal agencies.--The State shall serve 
     prior written notice of any action commenced under paragraph 
     (1) upon the Attorney General and the Federal Trade 
     Commission, and shall provide the Attorney General and the 
     Commission with a copy of the complaint; provided that, if 
     such prior notice is not feasible, the State shall serve such 
     notice immediately upon instituting such action. The Attorney 
     General and the Federal Trade Commission shall have the 
     right--
       ``(A) to move to stay the action, pending the final 
     disposition of a pending Federal matter as described in 
     paragraph (4);
       ``(B) to intervene in an action under paragraph (1);
       ``(C) upon so intervening, to be heard on all matters 
     arising therein;
       ``(D) to remove the action to the appropriate United States 
     district court; and
       ``(E) to file petitions for appeal.
       ``(3) Investigatory powers.--For purposes of bringing any 
     action under this subsection, nothing in this subsection 
     shall prevent the attorney general, or officers of such State 
     who are authorized by such State to bring such actions, from 
     exercising the powers conferred on the attorney general or 
     such officers by the laws of such State to conduct 
     investigations or to administer oaths or affirmations or to 
     compel the attendance of witnesses or the production of 
     documentary and other evidence.
       ``(4) Limitation on state action while federal action is 
     pending.--If the Attorney General has instituted a criminal 
     proceeding or the Federal Trade Commission has instituted a 
     civil action for a violation of this subtitle, no State may, 
     during the pendency of such proceeding or action, bring an 
     action under this section against any defendant named in the 
     criminal proceeding or civil action for any violation of this 
     subtitle that is alleged in that proceeding or action.''.

     SEC. 8. ENHANCED DISCLOSURE OF PRIVACY POLICIES.

       (a) Timing of Notice to Consumers.--Section 503(a) of the 
     Gramm-Leach-Bliley Act (15 U.S.C. 6803(a)) is amended to read 
     as follows:
       ``(a) Disclosure Required.--
       ``(1) Time of disclosure.--A financial institution shall 
     provide a disclosure that complies with paragraph (2)--
       ``(A) to an individual upon the individual's request;
       ``(B) as part of an application for a financial product or 
     service from the financial institution; and
       ``(C) to a consumer, prior to establishing a customer 
     relationship with the consumer and not less frequently than 
     annually during the continuation of such relationship.
       ``(2) Disclosure format.--The disclosure required by 
     paragraph (1) shall be a clear and conspicuous notice, in 
     writing or in electronic form or other form permitted by the 
     regulations implementing this subtitle, of such financial 
     institution's policies and practices with respect to--
       ``(A) disclosing nonpublic personal information to 
     affiliates and nonaffiliated third parties, consistent with 
     section 502, including the categories of information that may 
     be disclosed;
       ``(B) disclosing nonpublic personal information of persons 
     who have ceased to be customers of the financial institution; 
     and
       ``(C) protecting the nonpublic personal information of 
     consumers.
     Such disclosure shall be made in accordance with the 
     regulations implementing this subtitle.''.
       (b) Notice of Rights to Access and Correct Information.--
     Section 503(b)(2) of the Gramm-Leach-Bliley Act (15 U.S.C. 
     6803(b)(2)) is amended by inserting ``, and a statement of 
     the consumer's right to access and correct such information, 
     consistent with section 512'' after ``institution''.
       (c) Technical and Conforming Amendment.--Section 
     503(b)(1)(A) of the Gramm-Leach-Bliley Act (15 U.S.C. 
     6803(b)(1)(A)) is amended by striking ``502(e)'' and 
     inserting ``502(f)''.

     SEC. 9. LIMIT ON DISCLOSURE OF ACCOUNT NUMBERS.

       Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802) 
     is amended in subsection (e) (as so redesignated by section 
     5) by inserting ``affiliate or'' before ``nonaffiliated third 
     party''.

     SEC. 10. GENERAL EXCEPTIONS.

       Section 502(f) of the Gramm-Leach-Bliley Act (15 U.S.C. 
     6802)) (as so redesignated by section 5 of this Act) is 
     amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``Subsections (a) and (b)'' and inserting ``Subsection (a)'';
       (2) in paragraph (1)--
       (A) by striking ``or'' at the end of subparagraph (B);
       (B) by inserting ``or'' after the semicolon at the end of 
     subparagraph (C); and
       (C) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) performing services for or functions solely on behalf 
     of the financial institution with respect to the financial 
     institution's own customers, including marketing of the 
     financial institution's own products or services to the 
     financial institution's customers;'';
       (3) in paragraph (4), by striking ``, and the institution's 
     attorneys, accountants, and auditors'';
       (4) in paragraph (5), by inserting ``section 21 of the 
     Federal Deposit Insurance Act,'' after ``title 31, United 
     States Code,'';
       (5) in paragraph (7), by striking ``or'' at the end;
       (6) in paragraph (8), by striking the period and inserting 
     a semicolon; and
       (7) by adding at the end the following new paragraphs:
       ``(9) in order to facilitate customer service, such as 
     maintenance and operation of consolidated customer call 
     centers or the use of consolidated customer account 
     statements; or
       ``(10) to the institution's attorneys, accountants, and 
     auditors.''.

     SEC. 11. DEFINITIONS.

       Section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809) 
     is amended--
       (1) in paragraph (3)--
       (A) by striking ``(3) Financial institution'' and all that 
     follows through ``The term `financial institution'' and 
     inserting ``(3) Financial institution.--The term `financial 
     institution''; and
       (B) by striking subparagraphs (B), (C), and (D);
       (2) by amending paragraph (4) to read as follows:
       ``(4) Nonpublic personal information.--The term ``nonpublic 
     personal information'' means--
       ``(A) any personally identifiable information, including a 
     Social Security number--
       ``(i) provided by a consumer to a financial institution, in 
     an application or otherwise, to obtain a financial product or 
     service from the financial institution;

[[Page S3535]]

       ``(ii) resulting from any transaction between a financial 
     institution and a consumer involving a financial product or 
     service; or
       ``(iii) obtained by the financial institution about a 
     consumer in connection with providing a financial product or 
     service to that consumer, other than publicly available 
     information, as such term is defined by the regulations 
     prescribed under section 504; and
       ``(B) any list, description or other grouping of one or 
     more consumers of the financial institution and publicly 
     available information pertaining to them.''; and
       (3) in paragraph (9), by inserting ``applies for or'' 
     before ``obtains''.

     SEC. 12. ISSUANCE OF IMPLEMENTING REGULATIONS.

       (a) In General.--The Federal agencies specified in section 
     504(a) of the Gramm-Leach-Bliley Act (15 U.S.C. 6804(a)) 
     shall prescribe regulations implementing the amendments to 
     subtitle A of title V of the Gramm-Leach-Bliley Act made by 
     this Act, and shall include such requirements determined to 
     be appropriate to prevent their circumvention or evasion.
       (b) Coordination, Consistency, and Comparability.--The 
     regulations issued under subsection (a) shall be issued in 
     accordance with the requirements of section 504(a) of the 
     Gramm-Leach-Bliley Act (15 U.S.C. 6804(a)), except that the 
     deadline in section 504(a)(3) shall not apply.

     SEC. 13. FTC RULEMAKING AUTHORITY UNDER THE FAIR CREDIT 
                   REPORTING ACT.

       Section 621(e) of the Fair Credit Reporting Act (15 U.S.C. 
     1681s(e)) is amended by adding at the end the following new 
     paragraph:
       ``(3) Regulations.--The Federal Trade Commission shall 
     prescribe such regulations as necessary to carry out the 
     provisions of this title with respect to any persons 
     identified under paragraph (1) of subsection (a). Prior to 
     prescribing such regulations, the Federal Trade Commission 
     shall consult with the Federal banking agencies referred to 
     in paragraph (1) of this subsection in order to ensure, to 
     the extent possible, comparability and consistency with the 
     regulations issued by the Federal banking agencies under that 
     paragraph.''.
                                  ____


   Financial Information Privacy Protection Act--Section-by-Section 
                                Analysis

     Section 1: Short Title; table of Contents
     Section 101: Opt-out Requirement for Disclosure to Affiliates 
         and Nonaffiliated Third Parties
       The Gramm-Leach-Bliley Act (GLBA) requires a financial 
     institution to give consumers notice of, and an opportunity 
     to prevent (opt out of), sharing of their nonpublic personal 
     information with companies that are not affiliated with the 
     financial institution (nonaffiliated third parties). Section 
     101 of the bill strengthens consumers' control over their 
     personal financial information by expanding this opt-out 
     right to cover information sharing between financial 
     institutions and their affiliates.
       Section 101 also requires that when a financial institution 
     notifies a consumer of its intent to share the consumer's 
     information and gives the consumer the opportunity to opt-
     out, the consumer must be able to exercise the opt-out choice 
     through the same method of communication by which the 
     financial institution communicated the opt-out notice to the 
     consumer, or by another method at least as convenient to the 
     consumer. For example, if a financial institution gives a 
     consumer an opt-out notice by electronic mail, the consumer 
     would have to be able to exercise the opt-out by a method at 
     least as convenient, such as by electronic mail or by 
     telephone, but could not be required to opt-out via an 
     individual letter.
       The GLBA currently includes general exceptions to the 
     notice and opt-out requirement--for example, to allow 
     processing a consumer's transaction, to prevent fraud, or to 
     control institutional risk. The bill would also apply these 
     exceptions to information sharing with affiliates.
     Section 102: Limitation on Transfer of Information About 
         Personal Spending Habits
       Section 102 of the bill strengthens consumers' control over 
     the detailed information that financial firms can learn about 
     their personal spending habits and sources of income. In the 
     course of providing a payment mechanism for consumers, 
     financial institutions such as credit card companies, banks 
     and brokers--when they provide checking or money market 
     accounts--learn to whom a consumer makes payments, from whom 
     the consumer receives payments, and what the payments are 
     for.
       The bill recognizes the special sensitivity of this 
     information. It requires that where a financial institution 
     is providing payment services for a consumer, the institution 
     cannot disclose the consumer's spending habits--whether in 
     the form of a list of the consumer's transactions or as a 
     description of the consumer's interests, preferences, or 
     other characteristics derived from payment information--
     unless the institution clearly and conspicuously requests 
     permission from the consumer, and the consumer affirmatively 
     consents (opts in). This applies for transfers to both 
     nonaffiliated third parties and affiliates.
       Section 102 includes the exceptions for transaction 
     processing, servicing of customer accounts, and other 
     necessary activities such as law enforcement.
     Section 103: Restricting the Use of Health Information in 
         Making Credit and Other Financial Decisions
       Limitation on Receipt of Consumer Health Information from 
           Affiliates
       Section 103(a) of the bill prevents financial institutions 
     from using a consumer's health information held at an 
     affiliate in order to discriminate in the provision of credit 
     and financial services. Section 103(a) provides that in 
     deciding whether, and on what terms, to offer, provide, or 
     continue to provide a particular financial product or service 
     to a consumer, a financial institution may not obtain, 
     receive, evaluate, or otherwise consider individually 
     identifiable health information about the consumer from an 
     affiliate unless the financial institution: (1) clearly and 
     conspicuously requests permission from the consumer; (2) 
     obtains the consumer's affirmative consent; and (3) requires 
     the same information about all consumers as a condition for 
     receiving the financial product or service.
       Relation to the Health Insurance Portability and 
           Accountability Act
       Section 103(b) of the bill clarifies that the provisions of 
     subtitle A of title V of the GLBA, which create protections 
     for the privacy of consumers' financial information, do not 
     in any way modify or override the requirements of the 
     regulations issued by the Secretary of Health and Human 
     Services implementing the privacy and security protections 
     for consumers' individually identifiable health information 
     under the Health Insurance Portability and Accountability Act 
     of 1996 (HIPAA). Nor do the requirements of the GLBA 
     governing protection of consumers' financial information 
     authorize any use of individually identifiable health 
     information that would be inconsistent with other laws that 
     apply to such information. Section 103(c) makes clear that 
     for purposes of this provision, the term ``individually 
     identifiable health information'' has the same meaning as 
     under the HIPAA.
     Section 104: Limits on Redisclosure and Reuse of Information
       The GLBA imposes certain limits on a nonaffiliated third 
     party's ability to redisclose nonpublic personal information 
     received from a financial institution. The GLBA does not 
     prohibit a third party from redisclosing this information to 
     its own affiliates or to affiliates of the financial 
     institution from whom it received the information. In 
     addition, the third party may disclose the information to 
     another company if that disclosure would be lawful if made 
     directly by the financial institution.
       Section 104 of the bill tightens the limits on redisclosure 
     and extends them to a financial institution's affiliates, in 
     order to parallel the new opt-out requirement for disclosure 
     of information to affiliates. Under section 104, when a 
     financial institution discloses nonpublic personal 
     information to either an affiliate or a nonaffiliated 
     third party, the recipient of the information may not 
     redisclose the information to any other person unless that 
     disclosure would be lawful if made directly by the 
     financial institution.
       Section 104 also clarifies how the limits on redisclosure 
     apply when a financial institution discloses a consumer's 
     nonpublic personal information to another company pursuant to 
     one of the general exceptions to the opt-out requirement. 
     Section 104 provides that an affiliate or a nonaffiliated 
     third party that receives nonpublic personal information from 
     a financial institution under one of the general exceptions 
     may use or disclose that information only: (1) as permitted 
     under that general exception; or (2) under another general 
     exception, if necessary to carry out the purpose for which 
     the information was originally disclosed under a general 
     exception.
       Since the opt-in requirement for the disclosure of personal 
     spending information by payment service providers is subject 
     to some, but not all, of the general exceptions, only a 
     subset of the general exceptions apply to reuse and 
     redisclosure by recipients of such information.
     Section 105: Consumer Rights to Access and Correct 
         Information
       Section 105 of the bill gives consumers the right to access 
     and to correct information about them that is under the 
     control of, and reasonably available to a financial 
     institution. A financial institution would not, however, be 
     required to give consumers access to confidential commercial 
     information, to make disclosures that would interfere with 
     law enforcement, or to create new records in order to comply 
     with a consumer's request for information.
       Section 105 also requires financial institutions to give 
     consumers the opportunity to dispute the accuracy of 
     information disclosed to the consumer and to present evidence 
     of any inaccuracy. The financial institution must correct or 
     delete material information identified by the consumer that 
     is materially incomplete or inaccurate. In addition, a 
     financial institution may impose a reasonable fee for making 
     information available to consumers, as long as consumers 
     receive prior notice of the fee.
       In promulgating regulations to implement the new access and 
     correction requirements, federal regulators must consult and 
     coordinate with one another in order to ensure that the 
     regulations: (1) impose consistent requirements across 
     financial institutions; (2) take into account conditions 
     under which the financial institutions do business in the 
     U.S. and abroad; and (3) are technology neutral.
     Section 106: Improved Enforcement Authority
       Compliance with Privacy Policy
       The GLBA does not clearly explain whether a financial 
     institution is legally required

[[Page S3536]]

     to abide by commitments it makes to consumers in its privacy 
     policy if those commitments are not required by law. Section 
     106(a) of the bill clarifies that a financial institution's 
     failure to comply with any of the privacy policies or 
     practices disclosed to a consumer constitutes a violation 
     of law.
       Clarification of Federal Trade Commission (FTC) Enforcement 
           Authority
       Section 106(b) of the bill makes clear that if a financial 
     institution or other person under the FTC's enforcement 
     jurisdiction under subtitle A of title V of the GLBA engages 
     in an activity that violates subtitle A, that activity 
     constitutes an unfair and deceptive trade practice under the 
     Federal Trade Commission Act. Consequently, in addressing 
     such a violation, the FTC could use all the enforcement tools 
     it has with respect to unfair or deceptive acts or practices 
     under the FTC Act.
       State Enforcement Authority Concurrent with FTC
       Section 106(c) of the bill gives States concurrent 
     authority with the FTC to enforce the GLBA's privacy 
     requirements with respect to FTC-regulated entities. Section 
     106(d) gives the States concurrent authority with the FTC to 
     enforce the GLBA's prohibitions on ``pretext calling,'' which 
     involves obtaining customer information from a financial 
     institution under false pretenses. Enforcement with regard to 
     banking institutions would continue to be done solely by the 
     federal banking agencies.
     Section 107: Enhanced Disclosure of Privacy Policies
       Timing of Disclosure of Privacy Policy
       The GLBA requires financial institutions to provide their 
     privacy policies to consumers at the time of establishing a 
     customer relationship and at least annually during the 
     continuation of the relationship. The phrase ``at time of 
     establishing a customer relationship'' does not provide clear 
     guidance regarding when a financial institution must provide 
     its privacy policy to those individuals seeking to become its 
     customers. Section 107(a) of the bill is intended to clarify 
     the timing of notice delivery, and to ensure that individuals 
     are able to receive copies of financial institutions' privacy 
     policies before they commit time and resources to dealing 
     with any one financial institution. The bill specifically 
     clarifies that financial institutions must provide their 
     privacy policies to individuals upon request and as part of 
     an application for a financial product or service. Thus, 
     consumers will be empowered to comparison shop based on 
     privacy practices.
       Content of Privacy Policy--Disclosure of Rights to Access 
           and Correct Information
       Section 107(b) requires a financial institution's privacy 
     policy to include a statement of the consumer's rights to 
     access and correct information held by the financial 
     institution (see discussion of section 105 regarding 
     consumers' rights to access and correct information).
     Section 108: Prohibition on Sharing of Account Numbers
       The GLBA prohibits financial institutions from disclosing 
     consumers' account numbers or access codes to nonaffiliated 
     third parties (other than consumer reporting agencies) for 
     marketing purposes. Section 108 of the bill extends this 
     prohibition to disclosures to affiliates.
     Section 109: Exceptions to the Opt-out and Opt-in 
         Requirements
       Agency and Joint Marketing Exception
       Section 502(c) of the GLBA creates an exception to the opt-
     out requirement where a financial institution discloses a 
     consumer's nonpublic personal information to a nonaffiliated 
     third party that is acting as the financial institution's 
     agent. This exception permits a financial institution to 
     disclose consumers' nonpublic personal information to third 
     parties in connection with outsourcing certain functions, 
     such as back-office operations or direct mailings to market 
     the financial institution's own products, without giving 
     consumers the option to prevent disclosure. The financial 
     institution is, however, required to give consumers notice of 
     such disclosures and to enter into agreements with the third 
     parties to maintain the confidentiality of the consumers' 
     information.
       Among the services and functions covered by the principal-
     agent exception are certain joint marketing arrangements, 
     where a third party markets financial products or services 
     pursuant to a joint agreement between two or more financial 
     institutions. The joint marketing agreement exception was 
     enacted to allow financial institutions without affiliates, 
     particularly small institutions, to be able to jointly market 
     their products under the same rules that affiliates may do 
     so--that is, free from any opt-out requirement.
       As noted in the discussion of sections 101 and 102 above, 
     the bill imposes the same restrictions on information sharing 
     between affiliates that now apply to information sharing 
     between financial institutions and nonaffiliated third 
     parties. Therefore, because coverage of information sharing 
     among affiliates and with third parties would be equivalent, 
     the joint marketing exception is rendered unnecessary, and is 
     eliminated. The bill also moves the remaining principal-agent 
     exception from section 502(c) of the GLBA to the list of 
     general exceptions in 502(e), which is redesignated as 
     502(f).
       Customer Service and Consolidated Statements
       Among the general exceptions to the notice and opt-out 
     requirements in the GLBA are disclosures for servicing 
     customer accounts and resolving customer disputes or 
     inquires. These exceptions are intended to permit financial 
     institutions to share information in response to customer 
     service needs. Section 109(7) of the bill expands the general 
     exceptions to include disclosures necessary to facilitate 
     customer service such as maintenance and operation of 
     consolidated customer call centers and the use of 
     consolidated customer account statements.
       Technical Amendments
       Section 109 of the bill makes technical amendments to the 
     list of general exceptions in section 502(e) of the GLBA, by 
     splitting an existing exception that deals with disclosures 
     to rating agencies and attorneys, and by adding a conforming 
     statutory reference.
     Section 110: Definitions
       ``Financial Institution''
       The financial privacy requirements of subtitle A of title V 
     of the GLBA apply to ``financial institutions,'' which are 
     defined as institutions the business of which is engaging in 
     activities that have been specified as ``financial 
     activities'' under certain statutes and regulations. The 
     GLBA, however, specifically excludes three types of entities 
     from the definition of ``financial institution.'' They are: 
     (1) any person or entity to the extent engaged in a financial 
     activity that is subject to the jurisdiction of the Commodity 
     Futures Trading Commission; (2) the institutions of the Farm 
     Credit System; and 3) institutions chartered by Congress to 
     engage in certain securitization or secondary market sale 
     transactions, as long as such institutions do not sell or 
     transfer nonpublic personal information to nonaffiliated 
     third parties. Section 109(1) of the bill eliminates these 
     exclusions in order to ensure consistency in the protection 
     of consumers' nonpublic personal information under the GLBA. 
     The bill preserves the existing general exception for 
     disclosures in connection with securitization or secondary 
     market sales transactions.
       ``Nonpublic Personal Information''
       Section 110(2) of the bill revises the definition of 
     ``nonpublic personal information'' in order to clarify that 
     the term includes a consumer's Social Security number. This 
     provision also clarifies that publicly available information 
     about consumers also would be covered whether or not that 
     information is disclosed as part of a larger list of 
     consumers or as it pertains to an individual consumer. Under 
     current law, this type of information is covered only if it 
     is part of a list of more than one consumer.
       ``Consumer''
       Under the GLBA, the term ``consumer'' is defined as an 
     individual who obtains a financial product or service from a 
     financial institution for personal, family, or household 
     purposes, or such person's legal representative. Section 
     109(3) of the bill amends the definition of ``consumer'' to 
     clarify that the term includes an individual who applies for, 
     but does not necessarily obtain, such products or services 
     from a financial institution.
     Section 111: Implementing Regulations
       Section 110(a) of the bill authorizes the federal 
     regulators who have rulemaking authority under subtitle A of 
     title V of the GLBA to issue regulations implementing the 
     amendments made by the bill. The bill requires these agencies 
     to include in their regulations requirements they determine 
     are appropriate to prevent circumvention or evasion of any of 
     the bill's requirements. Section 110(b) provides that in 
     issuing their regulations, the agencies must follow the 
     procedures and requirements set forth in section 504(a) of 
     the GLBA that currently apply to their rulemaking authority. 
     Specifically, the agencies must consult with each other and 
     with representatives of state insurance authorities, and must 
     issue consistent and comparable rules, to the extent 
     possible. The statutory deadline in section 504(a)(3), which 
     is set in relation to the date of the enactment of the GLBA, 
     is obsolete for purposes of the regulations implementing this 
     bill, and therefore does not apply.
     Section 112: FTC Rulemaking Authority Under the Fair Credit 
         Reporting Act (FCRA)
       Section 112 of the bill amends section 621(e) of FCRA by 
     establishing rulemaking authority for the Federal Trade 
     Commission. This amendment creates parity with the federal 
     banking agencies and the National Credit Union 
     Administration, which each obtained rulemaking authority 
     under the FCRA for their respective regulated entities 
     pursuant to section 506 of the GLBA. Extending this authority 
     to the FTC fills a gap in administrative enforcement under 
     the FCRA.

  Mr. SARBANES. Mr. President, I rise today to address a very important 
issue: the protection of every American's personal, sensitive, 
financial and medical information which is held by their financial 
institutions. I am pleased to join Senator Leahy, the chairman of the 
Senate Democratic Privacy Task Force, and Senators Dodd, Kerry, Bryan, 
Edwards, Robb, Durbin, Harkin, and Feinstein in co-sponsoring the 
Financial Information Privacy Protection Act.
  This bill, submitted to us by the Clinton-Gore Administration, seeks 
to

[[Page S3537]]

protect a fundamental right of privacy for every American who entrusts 
his or her highly sensitive and confidential financial and medical 
information to a financial institution.
  Every American should at least have the opportunity to say `no' if he 
or she does not want that nonpublic information disclosed. Every 
American should have the right to have especially sensitive information 
held by his or her financial institution kept confidential unless 
consent is given. Every American should be allowed to make certain that 
the information to be shared is accurate and, if not, to have it 
corrected. And these rights should be enforced.
  Mr. President, the Financial Information Privacy Protection Act would 
accomplish these objectives.
  Few Americans understand that, under current Federal law, a financial 
institution could take information it obtained about a customer through 
his or her transactions, and sell or transfer that information to an 
affiliated party without the customer being able to object. And that 
customer has no right to get access to or to correct that information.
  The amount of information that could be disclosed is enormous. It 
includes, for example:
  Savings and checking account balances;
  Certificate of deposit maturity dates and balances;
  Checks an individual writes;
  Checks deposited into a customer's account;
  Stock and mutual fund purchases and sales;
  Life insurance payouts; and
  Health insurance claims.
  Today's technology makes it easier, faster, and less costly than ever 
for institutions to have immediate access to large amounts of customer 
information; to analyze that data; and to send that data to others. 
Banks, securities firms, and insurance companies are increasingly 
affiliating and cross-marketing and, in the process, they are selling 
the products of affiliates to existing customers. This can entail the 
warehousing of large amounts of highly sensitive customer information 
and selling it to or sharing it with other companies, for purposes 
unknown to the customer. While cross-marketing can bring new and 
beneficial products to receptive consumers, it can also result in 
unwanted invasions of personal privacy.
  Surveys show that the public is widely concerned about privacy. Major 
corporations have bumped up against privacy concerns when expanding 
their marketing services. Citizen groups have expressed serious 
concerns about the privacy implications of financial institutions' 
sharing or selling the information they collect without the knowledge 
of the party involved.
  Along with medical records, financial records rank among the kinds of 
personal data Americans most expect will be kept from prying eyes. As 
with medical data, though, the privacy of even highly sensitive 
financial data has been increasingly put at risk by mergers, electronic 
data-swapping and the move to an economy in which the selling of other 
people's personal information is highly profitable--and legal.
  On January 19, 1999, I introduced the Financial Information Privacy 
Act of 1999 (S. 187) to provide consumers with important privacy 
protections for their financial information. Some of these protections 
are reflected in this bill, including a right for consumers to object, 
or opt out, of their financial institutions sharing with affiliates 
customer information, such as account transactions, balances and 
maturity dates as well as rights for the consumer to have access to and 
to correct mistakes in information that would be shared.
  The Gramm-Leach-Bliley Act, enacted last November, contained some 
limited federal financial privacy protections for consumers. While an 
important beginning, these protections failed to meet the expectations 
of Americans and did not contain the important protections that I have 
just referred to.
  When the President signed the Gramm-Leach-Bliley Act, he observed 
that the privacy protections contained in the new legislation were 
inadequate. In his State of the Union Address this year, the President 
reiterated the need for stronger privacy legislation. Last Sunday, the 
President announced a proposal for improved financial privacy 
protections. He said, ``We can't let breakthroughs in technology break 
down walls of privacy.'' I agree and applaud the Clinton-Gore 
Administration's proposal as an important step forward.
  The Financial Privacy Protection Act reflects the Administration's 
proposal and contains important financial privacy protections.
  The Act would provide an ``opt out'' for affiliate sharing, allowing 
customers to object to a financial institution's sharing customer 
financial data with any affiliated firms.
  It also would provide an ``opt in'' for sharing some types of 
``sensitive information.'' A financial institution would need to have a 
consumer's affirmative consent before releasing his or her medical 
information or personal spending habits, reflected on checks written 
and credit card charges, to either an affiliate or an unaffiliated 
third party.
  The Act also provides consumers with rights of access and correction. 
A consumer would be able to see the information to be released and 
correct material errors.
  The Act also requires financial institutions to make privacy notices 
available to consumers who request them and makes other important 
improvements to the law.
  As we proceed in an age of technological advances and cross-industry 
marketing of financial services, we need to be mindful of the privacy 
concerns of the American public. I ask myself the question, ``Whose 
information is this, the individual's or the institution's?'' I believe 
it is the individual's.
  Consumers who wish to keep their sensitive financial and medical 
information private should be given a right to do so. The passage of 
the Financial Information Privacy Act would be a step toward that goal.
  Mr. DODD. Mr. President, after numerous unsuccessful attempts, last 
year, Congress enacted legislation to modernize our nation's financial 
services laws. This important legislation will help to provide 
consumers greater choices for financial products and services and will 
also ensure that U.S. financial services companies are better equipped 
to handle the challenges of competing in a global marketplace.
  As part of the financial services modernization legislation, limited 
provisions were included to help protect consumers' personal financial 
privacy. While these provisions were constructive, I believe that 
Congress must continue to press for the strongest possible privacy 
protections for financial services consumers.
  I rise today in support of legislation, the Financial Information 
Privacy Protection Act of 2000, which affords additional privacy 
protections for financial services consumers.
  Although it does not fully address my concerns with respect to the 
protection of financial and medical information, this legislation is a 
modest, but important step, in ensuring what I believe to be 
fundamental for all financial consumers, whether they execute their 
transactions in person, by mail or phone, or online. Consumers should 
have the ultimate control over the sharing of their personal financial 
information.
  This legislation provides that among affiliates of financial 
institutions as well as to unaffiliated third parties, consumers would 
be afforded the opportunity to ``op-out'' of the sharing of their 
personal financial information.
  Additionally, this legislation gives enhanced protection to 
consumers' medical records. Under this legislation, financial 
institutions would be required to obtain an affirmative consent from a 
consumer before the consumer's medical information could be shared 
among affiliates. Although I believe this is an important component in 
safeguarding the privacy of medical information, I continue to believe 
that it is critical we pass comprehensive medical privacy legislation 
this year so that consumers can be assured that their medical 
information is protected regardless of the context in which it 
generated or used.
  As we continue to wrestle with finding the proper balance between the 
providing new financial products and services while at the same time 
providing consumers with the strongest possible protections for their 
personal financial and medical information, This legislation is a 
positive step in the right direction.

[[Page S3538]]

                                 ______
                                 
      By Mr. GRAMS (for himself, Mr. Sessions, and Mr. Allard):
  S. 2514. A bill to improve benefits for members of the reserve 
components of the Armed Forces and their dependents; to the Committee 
on Armed Services.


             fairness for the military reserve act of 2000

 Mr. GRAMS. Mr. President, I ask unanimous consent that the 
text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2514

       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 ``Fairness for the Military 
     Reserve Act of 2000''.

     SEC. 2. TRAVEL BY RESERVES ON MILITARY AIRCRAFT OUTSIDE 
                   CONTINENTAL UNITED STATES.

       (a) Space-Required Travel for Travel to Duty Stations 
     OCONUS.--(1) Subsection (a) of section 18505 of title 10, 
     United States Code, is amended--
       (A) by inserting ``annual training duty or'' before 
     ``inactive-duty training'' both places it appears; and
       (B) by inserting ``duty or'' before ``training if''.
       (2) The heading of such section is amended to read as 
     follows:

     ``Sec. 18505. Space-required travel: Reserves traveling to 
       annual training duty or inactive-duty training OCONUS''.

       (b) Space-Available Travel for Members of Selected Reserve 
     and Gray Area Retirees.--(1) Chapter 1805 of such title is 
     amended by adding at the end the following new section:

     ``Sec. 18506. Space-available travel: Selected Reserve 
       members and reserve retirees under age 60; dependents

       ``(a) Eligibility for Space-Available Travel.--The 
     Secretary of Defense shall prescribe regulations to provide 
     persons described in subsection (b) with transportation on 
     aircraft of the Department of Defense on a space-available 
     basis under the same terms and conditions (including terms 
     and conditions applicable to travel outside the United 
     States) as apply to members and former members of the armed 
     forces entitled to retired pay.
       ``(b) Eligible Persons.--Subsection (a) applies to the 
     following persons:
       ``(1) A person who is a member of the Selected Reserve in 
     good standing (as determined by the Secretary concerned).
       ``(2) A person who is a member or former member of a 
     reserve component under age 60 who, but for age, would be 
     entitled to retired pay under chapter 1223 of this title.
       ``(c) Dependents.--A dependent of a person described in 
     subsection (b) shall be provided transportation under this 
     section on the same basis as dependents of members and former 
     members of the armed forces entitled to retired pay.
       ``(d) Limitation on Required Identification.--Neither the 
     `Authentication of Reserve Status for Travel Eligibility' 
     form (DD Form 1853) nor any other form, other military 
     identification and duty orders or other forms of 
     identification required of active duty personnel, may be 
     required to be presented by persons requesting space-
     available transportation within or outside the continental 
     United States under this section.
       ``(e) Dependent Defined.--In this section, the term 
     `dependent' has the meanings given that term in subparagraphs 
     (A), (B), (C), (D), and (I) of section 1074(2) of this 
     title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by striking the item relating to section 18505 and 
     inserting the following:

``18505. Space-required travel: Reserves traveling to annual training 
              duty or inactive-duty training OCONUS.
``18506. Space-available travel: Selected Reserve members and reserve 
              retirees under age 60; dependents.''.
       (c) Effective Date.--The regulations required under section 
     18506 of title 10, United States Code, as added by subsection 
     (b), shall be prescribed not later than 180 days after the 
     date of the enactment of this Act.

     SEC. 3. BILLETING SERVICES FOR RESERVE MEMBERS TRAVELING FOR 
                   INACTIVE DUTY TRAINING.

       (a) In General.--(1) Chapter 1217 of title 10, United 
     States Code, is amended by inserting after section 12603 the 
     following new section:

     ``Sec. 12604. Billeting in Department of Defense facilities: 
       Reserves attending inactive-duty training

       ``(a) Authority for Billeting on Same Basis as Active Duty 
     Members Traveling Under Orders.--The Secretary of Defense 
     shall prescribe regulations authorizing a Reserve traveling 
     to inactive-duty training at a location more than 50 miles 
     from that Reserve's residence to be eligible for billeting in 
     Department of Defense facilities on the same basis and to the 
     same extent as a member of the armed forces on active duty 
     who is traveling under orders away from the member's 
     permanent duty station.
       ``(b) Proof of Reason for Travel.--The Secretary shall 
     include in the regulations the means for confirming a 
     Reserve's eligibility for billeting under subsection (a).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     12603 the following new item:

``12604. Billeting in Department of Defense facilities: Reserves 
              attending inactive-duty training.
       (b) Effective Date.--Section 12604 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to periods of inactive-duty training beginning more 
     than 180 days after the date of the enactment of this Act.

     SEC. 4. INCREASE IN MAXIMUM NUMBER OF RESERVE RETIREMENT 
                   POINTS THAT MAY BE CREDITED IN ANY YEAR.

       Section 12733(3) of title 10, United States Code, is 
     amended by striking ``but not more than'' and all that 
     follows and inserting ``but not more than--
       ``(A) 60 days in any one year of service before the year of 
     service that includes September 23, 1996;
       ``(B) 75 days in the year of service that includes 
     September 23, 1996, and in any subsequent year of service 
     before the year of service that includes the date of the 
     enactment of the Reserve Components Equity Act of 2000; and
       ``(C) 90 days in the year of service that includes the date 
     of the enactment of the Reserve Components Equity Act of 2000 
     and in any subsequent year of service.''.

     SEC. 5. AUTHORITY FOR PROVISION OF LEGAL SERVICES TO RESERVE 
                   COMPONENT MEMBERS FOLLOWING RELEASE FROM ACTIVE 
                   DUTY.

       (a) Legal Services.--Section 1044(a) of title 10, United 
     States Code, is amended--
       (1) by redesignating paragraph (4) as paragraph (5); and
       (2) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) Members of reserve components of the armed forces not 
     covered by paragraph (1) or (2) following release from active 
     duty under a call or order to active duty for more than 30 
     days issued under a mobilization authority (as determined by 
     the Secretary of Defense), but only during the period that 
     begins on the date of the release and is equal to twice the 
     length of the period served on active duty under such call or 
     order to active duty.''.
       (b) Dependents.--Paragraph (5) of such section, as 
     redesignated by subsection (a)(1), is amended by striking 
     ``and (3)'' and inserting ``(3), and (4)''.
       (c) Implementing Regulations.--Regulations to implement the 
     amendments made by this section shall be prescribed not later 
     than 180 days after the date of the enactment of this 
     Act.
                                 ______
                                 
      By Mr. ROCKEFELLER:
  S. 2515. A bill to amend the Social Security Act to guarantee 
comprehensive health care coverage for all children born after 2001; to 
the Committee on Finance.


                 MEDIKIDS HEALTH INSURANCE ACT OF 2000

 Mr. ROCKEFELLER. Mr. President, I am pleased and proud to 
introduce the MediKids Health Insurance Act of 2000. Congressman Stark 
is introducing a companion bill in the House.
  This legislation is, without a doubt, ambitious. It is a deliberate 
effort to try to ignite a national commitment to the goal of insuring 
all of our children. For some, that is an idealistic proposition that 
does not seem achievable. With this bill, I want to call on the public 
and my colleagues to consider once again the clear and convincing case 
for investing the necessary resources in the health of our children--
and therefore, in the well-being of their families and our entire 
country. I will continue to work hard on every possible step to achieve 
this ultimate goal, but with this legislation, I urge lawmakers, health 
care professionals, and citizens to recognize the imperative of 
reaching that goal sooner rather than later.
  Our children are not only our future, they are also our present. What 
we do for them today will greatly affect what happens tomorrow. Yet 
even though we recognize these facts, we still have not found a way to 
guarantee health coverage for children. Without health insurance, many 
of these children go without health care all together.
  Children are the least expensive segment of our population to insure. 
They are also the least able to have control over whether or not they 
have health insurance. Yet we now have over 11 million uninsured 
children in this country. And this number is steadily climbing higher 
and higher every year.
  Our success in expanding Medicaid and passing the State Children's 
Health Insurance Program was a meaningful, significant start at closing 
the tragic gap represented by millions of uninsured children. However, 
Congress

[[Page S3539]]

cannot point to these programs and declare that our work is done. We 
still have much more to do. The percent of children in low-income 
families without health insurance has not changed in recent years. Even 
with perfect enrollment in S-CHIP and Medicaid, there would still be a 
great number of children without health insurance.
  This is partially due to our increasingly mobile society, where 
parents frequently change jobs and families often move from state to 
state. When this occurs there is often a lapse in health coverage. 
Also, families working their way out of welfare fluctuate between 
eligibility and ineligibility for means-tested assistance programs. 
Another reason for the number of uninsured children is that the cost of 
health insurance continues to increase, leaving many working parents 
unable to afford coverage for themselves or their families. All of this 
adds up to the fact that many of our children do not have the 
consistent and regular access to health care which they need to grow up 
healthy.
  That is why I am introducing the MediKids Health Insurance Act of 
2000. This bill would automatically enroll every child at birth into a 
new, comprehensive federal safety net health insurance program 
beginning in 2002. The benefits would be tailored to the needs of 
children and would be similar to those currently available to children 
under Medicaid. A small monthly premium would be collected from parents 
at tax filing, with discounts to low-income families phasing out at 
300% of poverty. The children would remain enrolled in MediKids 
throughout childhood. When they are covered by another health insurance 
program, their parents would be exempt from the premium. The key to our 
program is that whenever other sources of health insurance fail, 
MediKids would stand ready to cover the health needs of our next 
generation. By the year 2020, every child in America would be able to 
grow up with consistent, continuous health insurance coverage. Like 
Medicare, MediKids would be independently financed, would cover 
benefits tailored to the needs of its target population, and would have 
the goal of achieving nearly 100% health insurance coverage for the 
children of this country--just as Medicare has done for our nation's 
seniors and disabled population. It's time we make this investment in 
the future of America by guaranteeing all children the health coverage 
they need to make a healthy start in life. The MediKids Health 
Insurance Act would offer guaranteed, automatic health coverage for 
every child with the simplest of enrollment procedures and no 
challenging outreach, paperwork, or re-determination hoops to jump 
through. It would be able to follow children across state lines, or 
tide them over in a new location until their parents can enroll them in 
a new insurance program. Between jobs or during family crises such as 
divorce or the death of a parent, it would offer extra security and 
ensure continuous health coverage to the nation's children. During that 
critical period when a family is just climbing out of poverty and out 
of the eligibility range for means-tested assistance programs, it would 
provide an extra boost with health insurance for the children until the 
parents can move into jobs that provide reliable health insurance 
coverage. And every child would automatically be enrolled upon birth, 
along with the issuance of the birth certificate or immigration card.

  As we all know, an ounce of prevention is worth a pound of cure. 
Providing health care coverage to children affects much more than their 
health--it affects their ability to learn, their ability to thrive, and 
their ability to become a productive member of society. I look forward 
to working with my colleagues and supporting organizations for the 
passage of the MediKids Health Insurance Act of 2000 to guarantee every 
child in America the health coverage they need to grow up healthy.
  Mr. President, I stand before you today to deliver a message. That is 
that it is time to rekindle the discussion about how we are going to 
provide health insurance for all Americans. The bill I am introducing 
today--the MediKids Health Insurance Act of 2000--is a step toward 
eliminating the irrational and tragic lack of health insurance for so 
many children and adults in our country.
  Partial solutions to America's ``uninsured crisis'' lie before 
Congress, and I recognize the sense of realism and care that are the 
basis for proposing incremental steps towards universal coverage. As 
someone involved in the tough battles in years past to achieve 
universal coverage, I will continue to do all I can to make whatever 
progress can be made each and every year.
  But I also believe it is important to not lose sight of the ideal--
and our capacity to reach that ideal--of the United States of America 
joining every other industrialized nation by ensuring that its citizens 
have basic health insurance. Until we succeed, millions of children and 
adults will suffer human and financial costs that are preventable.
  Therefore, Mr. President, I offer this legislation to both enlist my 
colleagues in an effort to insist that all of our nation's children are 
insured as quickly as possible and to lay out the steps that would 
achieve that goal. At a time when Congress seems stalled by politics 
and paralysis, and is therefore failing to make any tangible progress 
in dealing with rising number of uninsured Americans, I hope this bill 
will help to build the will and momentum so desperately needed by our 
children for action that will change their lives and strengthen our 
very nation. I ask my colleagues from both sides of the aisle to join 
as co-sponsors.
  Mr. President, I ask unanimous consent that the text of the bill 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. 2515

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``MediKids 
     Health Insurance Act of 2000''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents; findings.
Sec. 2. Benefits for all children born after 2001.

                     ``TITLE XXII--MEDIKIDS PROGRAM

``Sec. 2201. Eligibility.
``Sec. 2202. Benefits.
``Sec. 2203. Premiums.
``Sec. 2204. MediKids Trust Fund.
``Sec. 2205. Oversight and accountability.
``Sec. 2206. Addition of care coordination services.
``Sec. 2207. Administration and miscellaneous.
Sec. 3. MediKids premium.
Sec. 4. Refundable credit for cost-sharing expenses under MediKids 
              program.
Sec. 5. Financing from tobacco liability payments.
Sec. 6. Report on long-term revenues.
       (c) Findings.--Congress finds the following:
       (1) More than 11 million American children are uninsured.
       (2) Children who are uninsured receive less medical care 
     and less preventive care and have a poorer level of health, 
     which result in lifetime costs to themselves and to the 
     entire American economy.
       (3) Although SCHIP and Medicaid are successfully extending 
     a health coverage safety net to a growing portion of the 
     vulnerable low-income population of uninsured children, we 
     now see that they alone cannot achieve 100 percent health 
     insurance coverage for our nation's children due to 
     inevitable gaps during outreach and enrollment, fluctuations 
     in eligibility, and variations in access to private insurance 
     at all income levels.
       (4) As all segments of our society continue to become more 
     and more transient, with many changes in employment over the 
     working lifetime of parents, the need for a reliable safety 
     net of health insurance which follows children across State 
     lines, already a major problem for the children of migrant 
     and seasonal farmworkers, will become a major concern for all 
     families in the United States.
       (5) The Medicare program has successfully evolved over the 
     years to provide a stable, universal source of health 
     insurance for the nation's disabled and those over age 65, 
     and therefore provides a tested model for designing a program 
     to reach out to America's children
       (6) The problem of insuring 100 percent of all American 
     children could be gradually solved by automatically enrolling 
     all children born after December 31, 2001, in a program 
     modeled after Medicare (and to be known as ``MediKids''), and 
     allowing those children to be transferred into other 
     equivalent or better insurance programs, including either 
     private insurance, SCHIP, or Medicaid, if they are eligible 
     to do so, but maintaining the child's default enrollment in 
     MediKids for any times when the child's access to other 
     sources of insurance is lost.

[[Page S3540]]

       (7) A family's freedom of choice to use other insurers to 
     cover children would not be interfered with in any way, and 
     children eligible for SCHIP and Medicaid would continue to be 
     enrolled in those programs, but the underlying safety net of 
     MediKids would always be available to cover any gaps in 
     insurance due to changes in medical condition, employment, 
     income, or marital status, or other changes affecting a 
     child's access to alternate forms of insurance.
       (8) The MediKids program can be administered without 
     impacting the finances or status of the existing Medicare 
     program.
       (9) The MediKids benefit package can be tailored to the 
     special needs of children and updated over time.
       (10) The financing of the program can be administered 
     without difficulty by a yearly payment of affordable premiums 
     through a family's tax filing (or adjustment of a family's 
     earned income tax credit).
       (11) The cost of the program will gradually rise as the 
     number of children using MediKids as the insurer of last 
     resort increases, and a future Congress always can accelerate 
     or slow down the enrollment process as desired, while the 
     societal costs for emergency room usage, lost productivity 
     and work days, and poor health status for the next generation 
     of Americans will decline.
       (12) Over time 100 percent of American children will always 
     have basic health insurance, and we can therefore expect a 
     healthier, more equitable, and more productive society.

     SEC. 2. BENEFITS FOR ALL CHILDREN BORN AFTER 2001.

       (a) In General.--The Social Security Act is amended by 
     adding at the end the following new title:

                     ``TITLE XXII--MEDIKIDS PROGRAM

     ``SEC. 2201. ELIGIBILITY.

       ``(a) Eligibility of Individuals Born After December 31, 
     2001.--An individual who meets the following requirements 
     with respect to a month is eligible to enroll under this 
     title with respect to such month:
       ``(1) Age.--The individual is born after December 31, 2001, 
     and has not attained 23 years of age.
       ``(2) Citizenship.--The individual is a citizen or national 
     of the United States or is permanently residing in the United 
     States under color of law.
       ``(b) Enrollment Process.--An individual may enroll in the 
     program established under this title only in such manner and 
     form as may be prescribed by regulations, and only during an 
     enrollment period prescribed by the Secretary consistent with 
     the provisions of this section. Such regulations shall 
     provide a process under which--
       ``(1) individuals who are born in the United States after 
     December 31, 2001, are deemed to be enrolled at the time of 
     birth and a parent or guardian of such an individual is 
     permitted to pre-enroll in the month prior to the expected 
     month of birth;
       ``(2) individuals who are born outside the United States 
     after such date and who become eligible to enroll by virtue 
     of immigration into (or an adjustment of immigration status 
     in) the United States are deemed enrolled at the time of 
     entry or adjustment of status;
       ``(3) eligible individuals may otherwise be enrolled at 
     such other times and manner as the Secretary shall specify, 
     including the use of outstationed eligibility sites as 
     described in section 1902(a)(55)(A) and the use of 
     presumptive eligibility provisions like those described in 
     section 1920A; and
       ``(4) at the time of automatic enrollment of a child, the 
     Secretary provides for issuance to a parent or custodian of 
     the individual a card evidencing coverage under this title 
     and for a description of such coverage.
     The provisions of section 1837(h) apply with respect to 
     enrollment under this title in the same manner as they apply 
     to enrollment under part B of title XVIII.
       ``(c) Date Coverage Begins.--
       ``(1) In general.--The period during which an individual is 
     entitled to benefits under this title shall begin as follows, 
     but in no case earlier than January 1, 2002:
       ``(A) In the case of an individual who is enrolled under 
     paragraph (1) or (2) of subsection (b), the date of birth or 
     date of obtaining appropriate citizenship or immigration 
     status, as the case may be.
       ``(B) In the case of an another individual who enrolls 
     (including pre-enrolls) before the month in which the 
     individual satisfies eligibility for enrollment under 
     subsection (a), the first day of such month of eligibility.
       ``(C) In the case of an another individual who enrolls 
     during or after the month in which the individual first 
     satisfies eligibility for enrollment under such subsection, 
     the first day of the following month.
       ``(2) Authority to provide for partial months of 
     coverage.--Under regulations, the Secretary may, in the 
     Secretary's discretion, provide for coverage periods that 
     include portions of a month in order to avoid lapses of 
     coverage.
       ``(3) Limitation on payments.--No payments may be made 
     under this title with respect to the expenses of an 
     individual enrolled under this title unless such expenses 
     were incurred by such individual during a period which, with 
     respect to the individual, is a coverage period under this 
     section.
       ``(d) Expiration of Eligibility.--An individual's coverage 
     period under this part shall continue until the individual's 
     enrollment has been terminated because the individual no 
     longer meets the requirements of subsection (a) (whether 
     because of age or change in immigration status).
       ``(e) Entitlement to MediKids Benefits For Enrolled 
     Individuals.--An individual enrolled under this section is 
     entitled to the benefits described in section 2202.
       ``(f) Low-Income Information.--At the time of enrollment of 
     a child under this title, the Secretary shall make an inquiry 
     as to whether or not the family income of the family that 
     includes the child is less than 150 percent of the poverty 
     line for a family of the size involved. If the family income 
     is below such level, the Secretary shall encode in the 
     identification card issued in connection with eligibility 
     under this title a code indicating such fact. The Secretary 
     also shall provide for a toll-free telephone line at which 
     providers can verify whether or not such a child is in a 
     family the income of which is below such level.
       ``(g) Construction.--Nothing in this title shall be 
     construed as requiring (or preventing) an individual who is 
     enrolled under this section from seeking medical assistance 
     under a State medicaid plan under title XIX or child health 
     assistance under a State child health plan under title XXI.

     ``SEC. 2202. BENEFITS.

       ``(a) Secretarial Specification of Benefit Package.--
       ``(1) In general.--The Secretary shall specify the benefits 
     to be made available under this title consistent with the 
     provisions of this section and in a manner designed to meet 
     the health needs of children.
       ``(2) Updating.--The Secretary shall update the 
     specification of benefits over time to ensure the inclusion 
     of age-appropriate benefits as the enrollee population gets 
     older.
       ``(3) Annual updating.--The Secretary shall establish 
     procedures for the annual review and updating of such 
     benefits to account for changes in medical practice, new 
     information from medical research, and other relevant 
     developments in health science.
       ``(4) Input.--The Secretary shall seek the input of the 
     pediatric community in specifying and updating such benefits.
       ``(b) Inclusion of Certain Benefits.--
       ``(1) Medicare core benefits.--Such benefits shall include 
     (to the extent consistent with other provisions of this 
     section) at least the same benefits (including coverage, 
     access, availability, duration, and beneficiary rights) that 
     are available under parts A and B of title XVIII.
       ``(2) All required medicaid benefits.--Such benefits shall 
     also include all items and services for which medical 
     assistance is required to be provided under section 
     1902(a)(10)(A) to individuals described in such section, 
     including early and periodic screening, diagnostic services, 
     and treatment services.
       ``(3) Inclusion of prescription drugs.--Such benefits also 
     shall include (as specified by the Secretary) prescription 
     drugs and biologicals.
       ``(4) Cost-sharing.--
       ``(A) In general.--Subject to subparagraph (B), such 
     benefits also shall include the cost-sharing (in the form of 
     deductibles, coinsurance, and copayments) applicable under 
     title XVIII with respect to comparable items and services, 
     except that no cost-sharing shall be imposed with respect to 
     early and periodic screening and diagnostic services included 
     under paragraph (2).
       ``(B) No cost-sharing for lowest income children.--Such 
     benefits shall not include any cost-sharing for children in 
     families the income of which (as determined for purposes of 
     section 1905(p)) does not exceed 150 percent of the official 
     income poverty line (referred to in such section) applicable 
     to a family of the size involved.
       ``(C) Refundable credit for cost-sharing for other low-
     income children.--For a refundable credit for cost-sharing in 
     the case of children in certain families, see section 35 of 
     the Internal Revenue Code of 1986.
       ``(c) Payment Schedule.--The Secretary, with the assistance 
     of the Medicare Payment Advisory Commission, shall develop 
     and implement a payment schedule for benefits covered under 
     this title. To the extent feasible, such payment schedule 
     shall be consistent with comparable payment schedules and 
     reimbursement methodologies applied under parts A and B of 
     title XVIII.
       ``(d) Input.--The Secretary shall specify such benefits and 
     payment schedules only after obtaining input from appropriate 
     child health providers and experts.
       ``(e) Enrollment in Health Plans.--The Secretary shall 
     provide for the offering of benefits under this title through 
     enrollment in a health benefit plan that meets the same (or 
     similar) requirements as the requirements that apply to 
     Medicare+Choice plans under part C of title XVIII. In the 
     case of individuals enrolled under this title in such a plan, 
     the Medicare+Choice capitation rate described in section 
     1853(c) shall be adjusted in an appropriate manner to reflect 
     differences between the population served under this title 
     and the population under title XVIII.

     ``SEC. 2203. PREMIUMS.

       ``(a) Amount of Monthly Premiums.--
       ``(1) In general.--The Secretary shall, during September of 
     each year (beginning with 2001), establish a monthly MediKids 
     premium. Subject to paragraph (2), the monthly MediKids 
     premium for a year is equal to \1/12\ of the annual premium 
     rate computed under subsection (b).

[[Page S3541]]

       ``(2) Elimination of monthly premium for demonstration of 
     equivalent coverage (including coverage under low-income 
     programs).--The amount of the monthly premium imposed under 
     this section for an individual for a month shall be zero in 
     the case of an individual who demonstrates to the 
     satisfaction of the Secretary that the individual has basic 
     health insurance coverage for that month the actuarial value 
     of which, as determined by the Secretary, is at least 
     actuarially equivalent to the benefits available under this 
     title. For purposes of the previous sentence enrollment in a 
     medicaid plan under title XIX, a State child health insurance 
     plan under title XXI, or under the medicare program under 
     title XVIII is deemed to constitute basic health insurance 
     coverage described in such sentence.
       ``(b) Annual Premium.--
       ``(1) National, per capita average.--The Secretary shall 
     estimate the average, annual per capita amount that would be 
     payable under this title with respect to individuals residing 
     in the United States who meet the requirement of section 
     2201(a)(1) as if all such individuals were eligible for (and 
     enrolled) under this title during the entire year (and 
     assuming that section 1862(b)(2)(A)(i) did not apply).
       ``(2) Annual premium.--Subject to subsection (d), the 
     annual premium under this subsection for months in a year is 
     equal to the average, annual per capita amount estimated 
     under paragraph (1) for the year.
       ``(c) Payment of Monthly Premium.--
       ``(1) Period of payment.--In the case of an individual who 
     participates in the program established by this title, 
     subject to subsection (d), the monthly premium shall be 
     payable for the period commencing with the first month of the 
     individual's coverage period and ending with the month in 
     which the individual's coverage under this title terminates.
       ``(2) Collection through tax return.--For provisions 
     providing for the payment of monthly premiums under this 
     subsection, see section 59B of the Internal Revenue Code of 
     1986.
       ``(3) Protections against fraud and abuse.--The Secretary 
     shall develop, in coordination with States and other health 
     insurance issuers, administrative systems to ensure that 
     claims which are submitted to more than one payor are 
     coordinated and duplicate payments are not made.
       ``(d) Reduction in Premium for Certain Low-Income 
     Families.--For provisions reducing the premium under this 
     section for certain low-income families, see section 59B(c) 
     of the Internal Revenue Code of 1986.

     ``SEC. 2204. MEDIKIDS TRUST FUND.

       ``(a) Establishment of Trust Fund.--
       ``(1) In general.--There is hereby created on the books of 
     the Treasury of the United States a trust fund to be known as 
     the `MediKids Trust Fund' (in this section referred to as the 
     `Trust Fund'). The Trust Fund shall consist of such gifts and 
     bequests as may be made as provided in section 201(i)(1) and 
     such amounts as may be deposited in, or appropriated to, such 
     fund as provided in this title.
       ``(2) Premiums.--Premiums collected under section 2203 
     shall be transferred to the Trust Fund.
       ``(b) Incorporation of Provisions.--
       ``(1) In general.--Subject to paragraph (2), subsections 
     (b) through (i) of section 1841 shall apply with respect to 
     the Trust Fund and this title in the same manner as they 
     apply with respect to the Federal Supplementary Medical 
     Insurance Trust Fund and part B, respectively.
       ``(2) Miscellaneous references.--In applying provisions of 
     section 1841 under paragraph (1)--
       ``(A) any reference in such section to `this part' is 
     construed to refer to title XXII;
       ``(B) any reference in section 1841(h) to section 1840(d) 
     and in section 1841(i) to sections 1840(b)(1) and 1842(g) are 
     deemed references to comparable authority exercised under 
     this title;
       ``(C) payments may be made under section 1841(g) to the 
     Trust Funds under sections 1817 and 1841 as reimbursement to 
     such funds for payments they made for benefits provided under 
     this title; and
       ``(D) the Board of Trustees of the MediKids Trust Fund 
     shall be the same as the Board of Trustees of the Federal 
     Supplementary Medical Insurance Trust Fund.

     ``SEC. 2205. OVERSIGHT AND ACCOUNTABILITY.

       ``(a) Through Annual Reports of Trustees.--The Board of 
     Trustees of the MediKids Trust Fund under section 2204(b)(1) 
     shall report on an annual basis to Congress concerning the 
     status of the Trust Fund and the need for adjustments in the 
     program under this title to maintain financial solvency of 
     the program under this title.
       ``(b) Periodic GAO Reports.--The Comptroller General of the 
     United States shall periodically submit to Congress reports 
     on the adequacy of the financing of coverage provided under 
     this title. The Comptroller General shall include in such 
     report such recommendations for adjustments in such financing 
     and coverage as the Comptroller General deems appropriate in 
     order to maintain financial solvency of the program under 
     this title.

     ``SEC. 2206. INCLUSION OF CARE COORDINATION SERVICES.

       ``(a) In General.--
       ``(1) Program authority.--The Secretary, beginning in 2002, 
     may implement a care coordination services program in 
     accordance with the provisions of this section under which, 
     in appropriate circumstances, eligible individuals may elect 
     to have health care services covered under this title managed 
     and coordinated by a designated care coordinator.
       ``(2) Administration by contract.--The Secretary may 
     administer the program under this section through a contract 
     with an appropriate program administrator.
       ``(3) Coverage.--Care coordination services furnished in 
     accordance with this section shall be treated under this 
     title as if they were included in the definition of medical 
     and other health services under section 1861(s) and benefits 
     shall be available under this title with respect to such 
     services without the application of any deductible or 
     coinsurance.
       ``(b) Eligibility Criteria; Identification and Notification 
     of Eligible Individuals.--
       ``(1) Individual eligibility criteria.--The Secretary shall 
     specify criteria to be used in making a determination as to 
     whether an individual may appropriately be enrolled in the 
     care coordination services program under this section, which 
     shall include at least a finding by the Secretary that for 
     cohorts of individuals with characteristics identified by the 
     Secretary, professional management and coordination of care 
     can reasonably be expected to improve processes or outcomes 
     of health care and to reduce aggregate costs to the programs 
     under this title.
       ``(2) Procedures to facilitate enrollment.--The Secretary 
     shall develop and implement procedures designed to facilitate 
     enrollment of eligible individuals in the program under this 
     section.
       ``(c) Enrollment of Individuals.--
       ``(1) Secretary's determination of eligibility.--The 
     Secretary shall determine the eligibility for services under 
     this section of individuals who are enrolled in the program 
     under this section and who make application for such services 
     in such form and manner as the Secretary may prescribe.
       ``(2) Enrollment period.--
       ``(A) Effective date and duration.--Enrollment of an 
     individual in the program under this section shall be 
     effective as of the first day of the month following the 
     month in which the Secretary approves the individual's 
     application under paragraph (1), shall remain in effect for 
     one month (or such longer period as the Secretary may 
     specify), and shall be automatically renewed for additional 
     periods, unless terminated in accordance with such procedures 
     as the Secretary shall establish by regulation. Such 
     procedures shall permit an individual to disenroll for cause 
     at any time and without cause at re-enrollment intervals.
       ``(B) Limitation on reenrollment.--The Secretary may 
     establish limits on an individual's eligibility to reenroll 
     in the program under this section if the individual has 
     disenrolled from the program more than once during a 
     specified time period.
       ``(d) Program.--The care coordination services program 
     under this section shall include the following elements:
       ``(1) Basic care coordination services.--
       ``(A) In general.--Subject to the cost-effectiveness 
     criteria specified in subsection (b)(1), except as otherwise 
     provided in this section, enrolled individuals shall receive 
     services described in section 1905(t)(1) and may receive 
     additional items and services as described in subparagraph 
     (B).
       ``(B) Additional benefits.--The Secretary may specify 
     additional benefits for which payment would not otherwise be 
     made under this title that may be available to individuals 
     enrolled in the program under this section (subject to an 
     assessment by the care coordinator of an individual's 
     circumstance and need for such benefits) in order to 
     encourage enrollment in, or to improve the effectiveness of, 
     such program.
       ``(2) Care coordination requirement.--Notwithstanding any 
     other provision of this title, the Secretary may provide that 
     an individual enrolled in the program under this section may 
     be entitled to payment under this title for any specified 
     health care items or services only if the items or services 
     have been furnished by the care coordinator, or coordinated 
     through the care coordination services program. Under such 
     provision, the Secretary shall prescribe exceptions for 
     emergency medical services as described in section 
     1852(d)(3), and other exceptions determined by the Secretary 
     for the delivery of timely and needed care.
       ``(e) Care Coordinators.--
       ``(1) Conditions of participation.--In order to be 
     qualified to furnish care coordination services under this 
     section, an individual or entity shall--
       ``(A) be a health care professional or entity (which may 
     include physicians, physician group practices, or other 
     health care professionals or entities the Secretary may find 
     appropriate) meeting such conditions as the Secretary may 
     specify;
       ``(B) have entered into a care coordination agreement; and
       ``(C) meet such criteria as the Secretary may establish 
     (which may include experience in the provision of care 
     coordination or primary care physician's services).
       ``(2) Agreement term; payment.--
       ``(A) Duration and renewal.--A care coordination agreement 
     under this subsection shall be for one year and may be 
     renewed if the Secretary is satisfied that the care 
     coordinator continues to meet the conditions of participation 
     specified in paragraph (1).
       ``(B) Payment for services.--The Secretary may negotiate or 
     otherwise establish

[[Page S3542]]

     payment terms and rates for services described in subsection 
     (d)(1).
       ``(C) Liability.--Case coordinators shall be subject to 
     liability for actual health damages which may be suffered by 
     recipients as a result of the care coordinator's decisions, 
     failure or delay in making decisions, or other actions as a 
     care coordinator.
       ``(D) Terms.--In addition to such other terms as the 
     Secretary may require, an agreement under this section shall 
     include the terms specified in subparagraphs (A) through (C) 
     of section 1905(t)(3).

     ``SEC. 2207. ADMINISTRATION AND MISCELLANEOUS.

       ``(a) In General.--Except as otherwise provided in this 
     title--
       ``(1) the Secretary shall enter into appropriate contracts 
     with providers of services, other health care providers, 
     carriers, and fiscal intermediaries, taking into account the 
     types of contracts used under title XVIII with respect to 
     such entities, to administer the program under this title;
       ``(2) individuals enrolled under this title shall be 
     treated for purposes of title XVIII as though the individual 
     were entitled to benefits under part A and enrolled under 
     part B of such title;
       ``(3) benefits described in section 2202 that are payable 
     under this title to such individuals shall be paid in a 
     manner specified by the Secretary (taking into account, and 
     based to the greatest extent practicable upon, the manner in 
     which they are provided under title XVIII);
       ``(4) provider participation agreements under title XVIII 
     shall apply to enrollees and benefits under this title in the 
     same manner as they apply to enrollees and benefits under 
     title XVIII; and
       ``(5) individuals entitled to benefits under this title may 
     elect to receive such benefits under health plans in a 
     manner, specified by the Secretary, similar to the manner 
     provided under part C of title XVIII.
       ``(b) Coordination with Medicaid and SCHIP.--
     Notwithstanding any other provision of law, individuals 
     entitled to benefits for items and services under this title 
     who also qualify for benefits under title XIX or XXI or any 
     other Federally funded program may continue to qualify and 
     obtain benefits under such other title or program, and in 
     such case such an individual shall elect either--
       ``(1) such other title or program to be primary payor to 
     benefits under this title, in which case no benefits shall be 
     payable under this title and the monthly premium under 
     section 2203 shall be zero; or
       ``(2) benefits under this title shall be primary payor to 
     benefits provided under such program or title, in which case 
     the Secretary shall enter into agreements with States as may 
     be appropriate to provide that, in the case of such 
     individuals, the benefits under titles XIX and XXI or such 
     other program (including reduction of cost-sharing) are 
     provided on a `wrap-around' basis to the benefits under this 
     title.''.
       (b) Conforming Amendments to Social Security Act 
     Provisions.--
       (1) Section 201(i)(1) of the Social Security Act (42 U.S.C. 
     401(i)(1)) is amended by striking ``or the Federal 
     Supplementary Medical Insurance Trust Fund'' and inserting 
     ``the Federal Supplementary Medical Insurance Trust Fund, and 
     the MediKids Trust Fund''.
       (2) Section 201(g)(1)(A) of such Act (42 U.S.C. 
     401(g)(1)(A)) is amended by striking `` and the Federal 
     Supplementary Medical Insurance Trust Fund established by 
     title XVIII'' and inserting ``, the Federal Supplementary 
     Medical Insurance Trust Fund, and the MediKids Trust Fund 
     established by title XVIII''.
       (3) Section 1853(c) of such Act (42 U.S.C. 1395w-23(c)) is 
     amended--
       (A) in paragraph (1), by striking ``or (7)'' and inserting 
     ``, (7), or (8)'', and
       (B) by adding at the end the following:
       ``(8) Adjustment for medikids.--In applying this subsection 
     with respect to individuals entitled to benefits under title 
     XXII, the Secretary shall provide for an appropriate 
     adjustment in the Medicare+Choice capitation rate as may be 
     appropriate to reflect differences between the population 
     served under such title and the population under parts A and 
     B.''.
       (c) Maintenance of Medicaid Eligibility and Benefits for 
     Children.--
       (1) In general.--In order for a State to continue to be 
     eligible for payments under section 1903(a) of the Social 
     Security Act (42 U.S.C. 1396b(a))--
       (A) the State may not reduce standards of eligibility, or 
     benefits, provided under its State medicaid plan under title 
     XIX of the Social Security Act or under its State child 
     health plan under title XXI of such Act for individuals under 
     23 years of age below such standards of eligibility, and 
     benefits, in effect on the date of the enactment of this Act; 
     and
       (B) the State shall demonstrate to the satisfaction of the 
     Secretary of Health and Human Services that any savings in 
     State expenditures under title XIX or XXI of the Social 
     Security Act that results from children from enrolling under 
     title XXII of such Act shall be used in a manner that 
     improves services to beneficiaries under title XIX of such 
     Act, such as through increases in provider payment rates, 
     expansion of eligibility, improved nurse and nurse aide 
     staffing and improved inspections of nursing facilities, and 
     coverage of additional services.
       (2) MediKids as primary payor.--In applying title XIX of 
     the Social Security Act, the MediKids program under title 
     XXII of such Act shall be treated as a primary payor in cases 
     in which the election described in section 2207(b)(2) of such 
     Act, as added by subsection (a), has been made.
       (d) Expansion of MedPAC Membership to 19.--
       (1) In general.--Section 1805(c) of the Social Security Act 
     (42 U.S.C. 1395b-6(c)) is amended--
       (A) in paragraph (1), by striking ``17'' and inserting 
     ``19''; and
       (B) in paragraph (2)(B), by inserting ``experts in 
     children's health,'' after ``other health professionals,''.
       (2) Initial terms of additional members.--
       (A) In general.--For purposes of staggering the initial 
     terms of members of the Medicare Payment Advisory Commission 
     under section 1805(c)(3) of the Social Security Act (42 
     U.S.C. 1395b-6(c)(3)), the initial terms of the 2 additional 
     members of the Commission provided for by the amendment under 
     subsection (a)(1) are as follows:
       (i) One member shall be appointed for 1 year.
       (ii) One member shall be appointed for 2 years.
       (B) Commencement of terms.--Such terms shall begin on 
     January 1, 2001.

     SEC. 3. MEDIKIDS PREMIUM.

       (a) General Rule.--Subchapter A of chapter 1 of the 
     Internal Revenue Code of 1986 (relating to determination of 
     tax liability) is amended by adding at the end the following 
     new part:

                     ``PART VIII--MEDIKIDS PREMIUM

``Sec. 59B. MediKids premium.

     ``SEC. 59B. MEDIKIDS PREMIUM.

       ``(a) Imposition of Tax.--In the case of an individual to 
     whom this section applies, there is hereby imposed (in 
     addition to any other tax imposed by this subtitle) a 
     MediKids premium for the taxable year.
       ``(b) Individuals Subject to Premium.--
       ``(1) In general.--This section shall apply to an 
     individual if the taxpayer has a MediKid at any time during 
     the taxable year.
       ``(2) MediKid.--For purposes of this section, the term 
     `MediKid' means, with respect to a taxpayer, any individual 
     with respect to whom the taxpayer is required to pay a 
     premium under section 2203(c) of the Social Security Act for 
     any month of the taxable year.
       ``(c) Amount of Premium.--For purposes of this section, the 
     MediKids premium for a taxable year is the sum of the monthly 
     premiums under section 2203 of the Social Security Act for 
     months in the taxable year.
       ``(d) Exceptions Based on Adjusted Gross Income.--
       ``(1) Exemption for very low-income taxpayers.--
       ``(A) In general.--No premium shall be imposed by this 
     section on any taxpayer having an adjusted gross income not 
     in excess of the exemption amount.
       ``(B) Exemption amount.--For purposes of this paragraph, 
     the exemption amount is--
       ``(i) $16,300 in the case of a taxpayer having 1 MediKid,
       ``(ii) $19,950 in the case of a taxpayer having 2 MediKids,
       ``(iii) $25,550 in the case of a taxpayer having 3 
     MediKids, and
       ``(iv) $30,150 in the case of a taxpayer having 4 or more 
     MediKids.
       ``(C) Phaseout of exemption.--In the case of a taxpayer 
     having an adjusted gross income which exceeds the exemption 
     amount but does not exceed twice the exemption amount, the 
     premium shall be the amount which bears the same ratio to the 
     premium which would (but for this subparagraph) apply to the 
     taxpayer as such excess bears to the exemption amount.
       ``(D) Inflation adjustment of exemption amounts.--In the 
     case of any taxable year beginning in a calendar year after 
     2001, each dollar amount contained in subparagraph (C) shall 
     be increased by an amount equal to the product of--
       ``(i) such dollar amount, and
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 1999' 
     for `calendar year 1992' in subparagraph (B) thereof.
     If any increase determined under the preceding sentence is 
     not a multiple of $50, such increase shall be rounded to the 
     nearest multiple of $50.
       ``(2) Premium limited to 5 percent of adjusted gross 
     income.--In no event shall any taxpayer be required to pay a 
     premium under this section in excess of an amount equal to 5 
     percent of the taxpayer's adjusted gross income.
       ``(e) Coordination With Other Provisions.--
       ``(1) Not treated as medical expense.--For purposes of this 
     chapter, any premium paid under this section shall not be 
     treated as expense for medical care.
       ``(2) Not treated as tax for certain purposes.--The premium 
     paid under this section shall not be treated as a tax imposed 
     by this chapter for purposes of determining--
       ``(A) the amount of any credit allowable under this 
     chapter, or
       ``(B) the amount of the minimum tax imposed by section 55.
       ``(3) Treatment under subtitle f.--For purposes of subtitle 
     F, the premium paid under this section shall be treated as if 
     it were a tax imposed by section 1.''.
       (b) Technical Amendments.--

[[Page S3543]]

       (1) Subsection (a) of section 6012 of such Code is amended 
     by inserting after paragraph (9) the following new paragraph:
       ``(10) Every individual liable for a premium under section 
     59B.''.
       (2) The table of parts for subchapter A of chapter 1 of 
     such Code is amended by adding at the end the following new 
     item:

``Part VIII. MediKids premium.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to months beginning after December 2001, in 
     taxable years ending after such date.

     SEC. 4. REFUNDABLE CREDIT FOR COST-SHARING EXPENSES UNDER 
                   MEDIKIDS PROGRAM.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 35 as 
     section 36 and by inserting after section 34 the following 
     new section:

     ``SEC. 35. COST-SHARING EXPENSES UNDER MEDIKIDS PROGRAM.

       ``(a) Allowance of Credit.--In the case of an individual 
     who has a MediKid (as defined in section 59B) at any time 
     during the taxable year, there shall be allowed as a credit 
     against the tax imposed by this subtitle an amount equal to 
     50 percent of the amount paid by the taxpayer during the 
     taxable year as cost-sharing under section 2202(b)(4) of the 
     Social Security Act.
       ``(b) Limitation Based on Adjusted Gross Income.--The 
     amount of the credit which would (but for this subsection) be 
     allowed under this section for the taxable year shall be 
     reduced (but not below zero) by an amount which bears the 
     same ratio to such amount of credit as the excess of the 
     taxpayer's adjusted gross income for such taxable year over 
     the exemption amount (as defined in section 59B(d)) bears to 
     such exemption amount.''.
       (b) Technical Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting before the period ``or 
     from section 35 of such Code''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of such Code is amended by striking 
     the last item and inserting the following new items:

``Sec. 35. Cost-sharing expenses under MediKids program.
``Sec. 36. Overpayments of tax.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2001.

     SEC. 5. FINANCING FROM TOBACCO LIABILITY PAYMENTS.

       Amounts that are recovered by the United States in the 
     civil action brought on September 22, 1999, under the Medical 
     Care Recovery Act, the Medicare Secondary Payer provisions, 
     and section 1962 of title 18, United States Code, in the 
     United States District Court for the District of Columbia 
     against the industry engaged in the production and sale of 
     tobacco products and persons engaged in public relations and 
     lobbying for such industry and that are attributable to the 
     expenditures of the Department of Health and Human Services 
     for tobacco-related illnesses shall be deposited in the 
     MediKids Trust Fund established under section 2204(a) of the 
     Social Security Act, as added by section 2(a) of the MediKids 
     Health Insurance Act of 2000.

     SEC. 6. REPORT ON LONG-TERM REVENUES.

       Within one year after the date of the enactment of this 
     Act, the Secretary of the Treasury shall propose a gradual 
     schedule of progressive tax changes to fund the program under 
     title XXII of the Social Security Act, as the number of 
     enrollees grows in the out-years.
                                  ____


 MediKids Health Insurance Act of 2000--Summary and Description of the 
                                  Bill

       There are still 11 million uninsured children in America. 
     Children are the least expensive segment of our population to 
     insure, they are the least able to have any control over 
     whether or not they have health insurance, and maintaining 
     their health is integral to their educational success and 
     their futures in our society.
       We will soon introduce the MediKids Health Insurance Act of 
     2000 to end the disgrace of allowing our children to survive 
     without the basic health protections they need to thrive.
       The MediKids Health Insurance Act of 2000 will create a new 
     Medicare type program called MediKids, tailored to the health 
     needs of children. The MediKids program will be separate from 
     Medicare and will have no financial impact on the existing 
     program.
       The cornerstone of the new program will be automatic 
     enrollment into MediKids at birth. Beginning in 2002, every 
     child will be automatically enrolled in MediKids health 
     insurance coverage at birth, and their parents will be 
     assessed a small annual premium with their taxes. Parents who 
     have another source of health insurance for their children 
     are exempt from this premium. Babies initially enrolled in 
     MediKids who are determined to be eligible for S-CHIP or 
     Medicaid can be enrolled into the appropriate other program.
       As each year brings a new cohort of babies into the 
     program, the program will grow to ensure a source of health 
     insurance to every child in America by the year 2020. (Future 
     Congresses will be able to speed up the extension of coverage 
     to children of all ages if they find it desirable to 
     accelerate the process of the program.) There will be no 
     means testing, no outreach problems, and the program will 
     exist as a safety net of health insurance for children, 
     regardless of income. It will cover their health needs 
     through changes in their parents' employment, marital status, 
     or access to private insurance.


          DETAILS OF THE MEDIKIDS HEALTH INSURANCE ACT OF 2000

                               Enrollment

       Automatic enrollment into MediKids at birth for every child 
     born after 12/31/2001.
       At the time of enrollment, materials describing the 
     coverage and a MediKids health insurance card will be issued 
     to the parent(s) of legal guardian(s).
       Once enrolled, children will remain enrolled in MediKids 
     until they reach the age of 23.
       During periods of equivalent coverage by other sources, 
     whether private insurance, or government programs such as 
     Medicaid or S-CHIP, there will be no premium charged for 
     MediKids.
       During any lapse in other insurance coverage, MediKids will 
     automatically cover the child's health insurance needs (and 
     premium will be owed for those months).

                                Benefits

       Based on Medicare core benefits, plus the Medicaid Early 
     and Periodic Screening, Diagnosis, and Treatment (EPSDT) 
     benefits for children.
       Prescription drug benefit.
       The Secretary of HHS shall further develop age-appropriate 
     benefits as needed as the program matures, and as funding 
     support allows.
       The Secretary shall include provisions for annual reviews 
     and updates to the benefits, with input from the pediatric 
     community.

                                Premiums

       Parents will be responsible for a small premium, one-fourth 
     of the annual average cost per child, to be collected at 
     income tax filing.
       Parents will be exempt from the premium if their children 
     are covered by comparable alternate health insurance. That 
     coverage can be either private insurance or enrollment in 
     other federal programs.
       Families up to 150% of poverty will owe no premium. 
     Families between 150% and 300% of poverty will receive a 
     graduated discount in the premium. Each family's obligation 
     will be capped at 5% of total income.

                  Cost-sharing (co-pays, deductibles)

       No cost-sharing for preventive and well child care.
       No obligations up to 150% of poverty.
       From 150% to 300% of poverty, a graduated refundable credit 
     for cost-sharing expenses.

                               Financing

       During the first few years, costs can be fully covered by 
     tobacco settlement monies, budget surplus, or other funds as 
     agreed upon, such as a portion of the surplus in the child 
     immunizations liability trust fund.
       During this time, the Secretary of Treasury has time to 
     develop a package of progressive, gradual tax changes to fund 
     the program, as the number of enrollees grows in the out-
     years.

                             Miscellaneous

       To the extent that the states save money from the 
     enrollment of children into MediKids, they will be required 
     to maintain those funding levels in other programs and 
     services directed at the Medicaid population, which can 
     include expanding eligibility for such services.
       At the issuance of legal immigration papers for a child 
     born after 12/31/01, that child will be automatically 
     enrolled in the MediKids health insurance program.
       If you would like to get more information about the 
     legislation, or to join as an original cosponsor, please 
     contact Deborah Veres with Senator Rockefeller at 4-
     7993.

                          ____________________