[Congressional Record Volume 147, Number 41 (Monday, March 26, 2001)]
[Senate]
[Pages S2895-S2904]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. TORRICELLI:
  S. 609. A bill to close loopholes in the firearms laws which allow 
the unregulated manufacture, assembly, shipment, or transportation of 
firearms or firearm parts, and for other purposes; to the Committee on 
the Judiciary.
  Mr. TORRICELLI. Mr. President, today I introduce the Gun Parts 
Trafficking Act.
  For years, I have fought along with many of my colleagues against the 
gun violence that has plagued America. We have sought to keep firearms 
from the hands of children and those who would use them to do harm. 
After long debate, we succeeded in enacting a ban on assault weapons, 
as well as the Brady bill requiring a criminal background at the time 
of a firearms purchase, positive steps in the effort to protect our 
communities from gun violence.
  Gun violence, however, continues to have a devastating impact on our 
Nation. The statistics have been well documented, but bear repeating. 
In 1997 alone, more than 32,000 Americans were shot and killed. 
Fourteen children die

[[Page S2896]]

from gunfire every day. The economic toll of firearms deaths and 
injuries on our country, $33 billion each year, is astronomical.
  In light of these staggering figures it seems obvious that we must do 
more, including regulating guns like any other consumer product. But 
while we look forward, we must also be mindful of attempts by some to 
subvert the progress we have made.
  Some gun dealers are exploiting a loophole in current law that allows 
them to sell, through the U.S. mail, gun kits containing virtually 
every single item needed to build an automatic weapon. When we enacted 
a ban on these deadly automatic weapons, we exempted automatic weapons 
legally owned prior to the ban. We also allowed replacement parts to be 
legally sold so that these grand-fathered weapons could be repaired by 
their owners, and we allowed these parts to be shipped through the 
mail.
  These provisions, however, have been exploited and replacement part 
kits that can convert a legally owned firearm into an illegal automatic 
weapon are readily available and heavily advertised in numerous 
publications. Some of these kits even go so far as to provide a 
template that shows how to make this conversion. This is a flagrant 
effort to evade the laws of the United States. This activity must be 
stopped in order to maintain the integrity of our ban on assault 
weapons and protect our communities from gun violence.
  To that end, I am reintroducing the Gun Parts Trafficking Act, 
legislation that I first introduced in the 106th Congress. This bill is 
designed to close the loopholes in existing law and end the sale of 
kits designed to convert legally owned firearms into illegal automatic 
weapons. It will expand the definition of ``firearm'' to include the 
main components of the weapon and will prohibit the manufacture or 
assembly of guns by an individual who does not have a license to do so.
  I urge my colleagues to join me in support of the ``Gun Parts 
Trafficking Act'' and ask unanimous consent that the full text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 609

       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 ``Gun Parts Trafficking Act of 
     2001''.

     SEC. 2. PROHIBITION AGAINST SHIPMENT OR TRANSPORTATION OF 
                   FIREARM PARTS, WITH CERTAIN EXCEPTIONS.

       Section 921(a)(3) of title 18, United States Code, is 
     amended by striking ``or (D) any destructive device.'' and 
     inserting ``(D) any destructive device; or (E) any parts or 
     combination of parts that when assembled on a frame or 
     receiver would constitute a firearm, as defined in this 
     paragraph.''.

     SEC. 3. PROHIBITION AGAINST MANUFACTURE OR ASSEMBLY OF 
                   FIREARMS BY PERSONS OTHER THAN LICENSED 
                   MANUFACTURERS.

       Section 922 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(z) It shall be unlawful for any person other than a 
     licensed manufacturer to manufacture or assemble a 
     firearm.''.

     SEC. 4. INCREASE IN FEE FOR LICENSE TO MANUFACTURE FIREARMS.

       Section 923(a)(1)(B) of title 18, United States Code, is 
     amended by striking ``$50'' and inserting ``$500''.

     SEC. 5. PROHIBITION AGAINST POSSESSION OR TRANSFER OF CERTAIN 
                   COMBINATIONS OF MACHINEGUN REPLACEMENT PARTS.

       Section 5845(b) of the Internal Revenue Code of 1986 (known 
     as the National Firearms Act) is amended in the second 
     sentence by striking ``designed and intended solely and 
     exclusively, or combination of parts designed and intended,'' 
     and inserting ``or combination of parts designed and 
     intended''.

     SEC. 6. EFFECTIVE DATE.

       The amendments made by this Act shall apply to conduct 
     engaged in after the 60-day period beginning on the date of 
     enactment of this Act.
                                 ______
                                 
      By Mr. TORRICELLI:
  S. 610. A bill to provide grants to law enforcement agencies to 
purchase firearms needed to perform law enforcement duties; to the 
Committee on the Judiciary.
  Mr. TORRICELLI. Mr. President today I introduce a bill that will 
reduce the number of firearms on the street and help keep guns out of 
the hands of criminals. In the wake of the tragic shooting this year 
outside of San Diego, we are reminded of what happens when the wrong 
people have access to guns. Such tragic shootings become even more 
troubling when they involve a former police gun or firearms previously 
involved in a crime.
  It is vital that law enforcement agencies have the very best 
equipment available to ensure their safety and to protect America's 
communities, but purchasing new weapons can be expensive, particularly 
for smaller cash-strapped municipalities. Thus, to offset the costs of 
purchasing new weapons, law enforcement agencies have often in the last 
two decades either sold their old guns to dealers or auctioned them off 
to the public. However, this practice has led to an unintended result, 
increased risk that these guns would end up back on the streets and in 
the hands of criminals.
  In the past 10 years, firearms once used by law enforcement agencies 
have been involved in more than 3,000 crimes throughout the United 
States, including 293 homicides, 301 assaults, and 279 drug-related 
crimes. In 1999, Bufford Furrow, a white supremacist, used a Glock 
pistol that was decommissioned and sold by a police agency in the State 
of Washington to terrorize and shoot children at a Jewish community 
center in Los Angeles and then kill a postal worker. Members of the 
Latin Kings, a violent Chicago street gang, used guns formerly owned by 
the Miami-Dade Police Department in Florida to commit violent crimes in 
Illinois. And a 1996 investigation by the New York State inspector 
general found that weapons used by New York law enforcement officers 
had been used in crimes in at least two other States.
  It is time that we help our law enforcement agencies do what they are 
trying to do--get out of the business of selling guns. With the help of 
the bill I am introducing, law enforcement agencies will no longer be 
forced to resell their old guns or guns seized from criminals to help 
them obtain the new weapons that are necessary to carry out their 
duties. Instead, this bill would provide grants to State or local law 
enforcement agencies to assist them in purchasing new firearms. In 
order to receive these grants, the law enforcement agencies must simply 
agree to either destroy their decommissioned guns or not sell them to 
the public.
  A growing number of States and cities have already decided to ban the 
practice of pouring old police guns into the consumer market. They 
recognize that the extra money gained from selling old police guns is 
not worth the possibility that those guns would contribute to 
additional suffering or loss of life. It is simply bad public policy 
for governments to be suppliers of guns and potentially add to the 
problem of gun violence in America. Regardless of where one stands on 
gun control, logic, common sense, and decency demand that we also 
recognize this simple truth and unite behind moving this bill to 
passage.
  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. 610

       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 ``Police Gun Buyback 
     Assistance Act''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Buford Furrow, a white supremacist, used a Glock pistol 
     decommissioned and sold by a law enforcement agency in the 
     State of Washington, to shoot children at a Jewish community 
     center in Los Angeles and kill a postal worker.
       (2) Twelve firearms were recently stolen during shipment 
     from the Miami-Dade Police Department to Chicago, Illinois. 
     Four of these firearms have been traced to crimes in Chicago, 
     Illinois, including a shooting near a playground.
       (3) In the past 9 years, decommissioned firearms once used 
     by law enforcement agencies have been involved in more than 
     3,000 crimes, including 293 homicides, 301 assaults, and 279 
     drug-related crimes.
       (4) Many State and local law enforcement departments also 
     engage in the practice of reselling firearms that were 
     involved in the commission of a crime and confiscated. Often 
     these firearms are assault weapons that were in circulation 
     prior to the restrictions imposed by the Violent Crime 
     Control and Law Enforcement Act of 1994.

[[Page S2897]]

       (5) Law enforcement departments in the States of New York 
     and Georgia, the City of Chicago, and other localities have 
     adopted the practice of destroying decommissioned firearms.
       (b) Purpose.--The purpose of this Act is to reduce the 
     number of firearms on the streets by assisting State and 
     local law enforcement agencies in eliminating the practice of 
     transferring decommissioned firearms to any person.

      SEC. 3. PROGRAM AUTHORIZED.

       (a) Grants.--The Attorney General may make grants to States 
     or units of local government--
       (1) to assist States and units of local government in 
     purchasing new firearms without transferring decommissioned 
     firearms to any person; and
       (2) to destroy decommissioned firearms.
       (b) Eligibility.--
       (1) In general.--Except as provided in paragraph (2), to be 
     eligible to receive a grant under this Act, a State or unit 
     of local government shall certify that it has in effect a law 
     or official policy that--
       (A) eliminates the practice of transferring any 
     decommissioned firearm to any person; and
       (B) provides for the destruction of a decommissioned 
     firearm.
       (2) Exception.--A State or unit of local government may 
     transfer a decommissioned firearm to a law enforcement 
     agency.
       (c) Use of Funds.--A State or unit of local government that 
     receives a grant under this Act shall only use that grant to 
     purchase new firearms.

      SEC. 4. APPLICATIONS.

       (a) State Applications.--To request a grant under this Act, 
     the chief executive of a State shall submit an application, 
     signed by the Attorney General of the State requesting the 
     grant, to the Attorney General in such form and containing 
     such information as the Attorney General may reasonably 
     require.
       (b) Local Applications.--To request a grant under this Act, 
     the chief executive of a unit of local government shall 
     submit an application, signed by the chief law enforcement 
     officer in the unit of local government requesting the grant, 
     to the Attorney General in such form and containing such 
     information as the Attorney General may reasonably require.

     SEC. 5. REGULATIONS.

       Not later than 90 days after the date of enactment of this 
     Act, the Attorney General shall promulgate regulations to 
     implement this Act, which shall specify the information that 
     must be included and the requirements that the States and 
     units of local government must meet in submitting 
     applications for grants under this Act.

     SEC. 6. REPORTING.

       (a) In General.--A State or unit of local government shall 
     report to the Attorney General not later than 2 years after 
     funds are received under this Act, regarding the 
     implementation of this Act.
       (b) Budget Assurances.--The report required under 
     subsection (a) shall include budget assurances that any 
     future purchase of a firearm by a law enforcement agency will 
     be possible without transferring a decommissioned firearm.

     SEC. 7. DEFINITION.

       In this Act:
       (1) Decommissioned firearm.--The term ``decommissioned 
     firearm'' means a firearm--
       (A) that is no longer in service or use by a law 
     enforcement agency; or
       (B) that was involved in the commission of a crime and was 
     confiscated and is no longer needed for evidentiary purposes.
       (2) Firearm.--The term ``firearm'' has the same meaning 
     given that term in section 921(a)(3) of title 18, United 
     States Code.
        (3) Person.--The term ``person'' has the same meaning 
     given that term in section 1 of title 1, United States Code.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     Act $10,000,000 for each of the fiscal years 2001 through 
     2005.
                                 ______
                                 
      By Ms. MIKULSKI (for herself, Mr. Sarbanes, Ms. Snowe, Mr. 
        Dorgan, Ms. Collins, Mr. Johnson, Mr. Schumer, Mr. Leahy, Mr. 
        Dodd, Mr. Bingaman, and Mr. Daschle):
  S. 611. A bill to amend title II of the Social Security Act to 
provide that the reduction in social security benefits which are 
required in the case of spouses and surviving spouses who are also 
receiving certain Government pensions shall be equal to the amount by 
which two-thirds of the total amount of the combined monthly benefit 
(before reduction) and monthly pension exceeds $1,200, adjusted for 
inflation; to the Committee on Finance.
  Ms. MIKULSKI. Mr. President, I rise today to talk about an issue that 
is very important to me, very important to my constituents in Maryland 
and very important to government workers and retirees across the 
Nation. I am reintroducing a bill to modify a cruel rule of government 
that is unfair and prevents current workers from enjoying the benefits 
of their hard work during retirement.
  Under current law, a Social Security spousal benefit is reduced or 
entirely eliminated if the surviving spouse is eligible for a pension 
from a local, State or Federal Government job that was not covered by 
Social Security. This policy is known as the Government Pension Offset.
  This is how the current law works. Consider a surviving spouse who 
retires from government service and receives a government pension of 
$600 a month. She also qualifies for a Social Security spousal benefit 
of $645 a month. Because of the Pension Offset law (which reduces her 
Social Security benefit by 2/3 of her government pension), her spousal 
benefit is reduced to $245 a month. So instead of $1245, she will 
receive only $845 a month. That is $400 a month less to pay the rent, 
purchase a prescription medication, or buy groceries. I think that is 
wrong.
  My bill does not repeal the government pension offset entirely, but 
it will allow retirees to keep more of what they deserve. It guarantees 
that those subject to the offset can keep at least $1200 a month in 
combined retirement income. With my modification, the 2/3 offset would 
apply only to the combined benefit that exceeds $1200 a month. So, in 
the example above, the surviving spouse would face only a $30 offset, 
allowing her to keep $1215 in monthly income.
  Unfortunately, the current law disproportionately affects women. 
Women are more likely to receive Social Security spousal benefits and 
to have worked in low-paying or short-term government positions while 
they were raising families. It is also true that women receive smaller 
government pensions because of their lower earnings, and rely on Social 
Security benefits to a greater degree. My modification will allow these 
women who have contributed years of important government service and 
family service to rely on a larger amount of retirement income.
  In the last Congress, the Senate unanimously voted for and passed 
H.R. 5, The Senior Citizens' Freedom to Work Act of 1999. This 
legislation ensured that senior citizens who choose to work or who must 
work can earn income after retirement without losing a portion of their 
Social Security benefit. That law helps senior citizens who earn above 
$17,000 per year. In contrast, my bill specifically targets those with 
much lower retirement incomes, around $13,000 per year and less. I 
believe that we must work to ensure a safety net for all of our 
seniors, including those retired federal employees who every day are 
forced to make difficult choices between rent, food, and prescription 
drugs due to the drastic effects of the government pension offset.
  Why do we punish people who have committed a significant portion of 
their lives to government service? We are talking about workers who 
provide some of the most important services to our community, teachers, 
firefighters, and many others. Some have already retired. Others are 
currently working and looking forward to a deserved retirement. These 
individuals deserve better than the reduced monthly benefits that the 
Pension Offset currently requires.
  Government employees work hard in service to our Nation, and I work 
hard for them. I do not want to see them penalized simply because they 
have chosen to work in the public sector, rather than for a private 
employer, and often at lower salaries and sometimes fewer benefits. If 
a retired worker in the private sector received a pension, and also 
received a spousal Social Security benefit, they would not be subject 
to the Offset. I think we should be looking for ways to reward 
government service, not the other way around. I believe that people who 
work hard and play by the rules should not be penalized by arcane, 
legislative technicalities.
  Frankly, I would like to repeal the offset all together. But, I 
realize that budget considerations make that unlikely. As a compromise, 
I hope we can agree that retirees who have worked hard all their lives 
should not have this offset applied until their combined monthly 
benefit, both government pension and Social Security spousal benefit, 
exceeds $1,200.
  I also strongly believe that we should ensure that retirees buying 
power keeps up with the cost of living. That's why I have also included 
a provision in

[[Page S2898]]

this legislation to index the $1,200 amount to inflation so retirees 
will see their minimum benefits increase along with the cost of living.
  The Social Security Administration recently estimated that enacting 
the provisions contained in my bill will have a negligible long-term 
impact on the Social Security Trust Fund, about 0.005 percent of 
taxable payroll. Additionally, my bill is bipartisan and is strongly 
supported by CARE, the Coalition to Assure Retirement Equity with 43 
member organizations including the National Association of Retired 
Federal Employees, NARFE, the American Federation of Federal State 
County and Municipal Employees, AFSCME, the National Education 
Association, NEA, and the National Treasury Employees Union, NTEU.
  I urge my colleagues to join me in this effort and support my 
legislation to modify the Government Pension Offset.
                                 ______
                                 
      By Mr. FIENGOLD (for himself and Mr. Bond):
  S. 612. A bill to amend title 38, United States Code, to require the 
Secretary of Veterans Affairs to develop and implement an annual plan 
for outreach regarding veterans benefits, and for other purposes; to 
the Committee on Veterans' Affairs.
  Mr. FEINGOLD. Mr. President, today I am introducing a measure that 
will help ensure that all of our nation's veterans who earned benefits 
through their service receive those benefits. I am pleased to be joined 
today by the senior Senator from Missouri, Senator Bond. As chairman of 
the Appropriations Subcommittee on Veterans, Housing and Urban 
Development, he has long been a strong advocate for our veterans.
  Late last year the Wisconsin Department of Veterans Affairs (WDVA) 
launched a statewide program called I Owe You. Under the direction of 
Secretary Ray Boland, the I Owe You program encourages veterans to 
apply, or re-apply, for benefits that they earned from their service to 
the United States.
  As part of this program, WDVA held an outreach event in Milwaukee 
where veterans could apply for benefits--more than 1,500 veterans and 
family members attended the event and many started the process of 
receiving the benefits owed to them. This was only the first of their 
``supermarkets of veterans benefits'' that they plan to hold across the 
State.
  The State of Wisconsin is performing a service that is clearly the 
obligation of the Department of Veterans Affairs. These are federal 
benefits that we owe our veterans and it is the Federal Government's 
obligation to make sure that they receive them. Obviously, we must make 
a greater effort if more than 1,500 people in the Milwaukee area alone 
attended this event.
  This bill calls upon the Department of Veterans Affairs to take on 
the responsibility of better informing our veterans about the benefits 
and services they have earned. Under the National I Owe You Act, the 
Secretary of the Department of Veterans Affairs will develop and 
implement a plan to encourage veterans to apply for their benefits, 
identify those entitled to benefits who aren't currently receiving 
them, and notify veterans of any modifications to veterans benefits 
programs.
  The American people are indebted to our nation's veterans. As a 
result of their loyal service and sacrifice, we maintain our freedoms 
and rights. It's time that we do right by our veterans and honor the 
commitment that we made to the men and women who served our country in 
the Armed Forces.
  I urge my colleagues to support the National I Owe You Act to ensure 
that this commitment is honored.
  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. 612

       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 ``National I Owe You Act''.

     SEC. 2. DEVELOPMENT AND IMPLEMENTATION OF ANNUAL PLAN FOR 
                   OUTREACH REGARDING VETERANS BENEFITS.

       (a) Findings.--Congress makes the following findings:
       (1) The mission of the Department of Veterans Affairs 
     includes acting as a principal advocate for veterans in order 
     to assure that veterans receive the benefits to which they 
     are entitled as a result of service to the nation.
       (2) The Veterans Benefits Administration of the Department 
     of Veterans Affairs is responsible for the timely and 
     accurate distribution of benefits to veterans and their 
     dependents.
       (3) Only 2,600,000 of the 24,000,000 living United States 
     veterans are receiving benefits through the Department of 
     Veterans Affairs.
       (4) There may be veterans entitled to veterans benefits who 
     are not aware of their entitlement to such benefits.
       (5) The Veterans Benefits Administration needs to take more 
     aggressive actions to ensure that all veterans are aware of 
     the veterans benefits to which they are entitled.
       (6) The State of Wisconsin Department of Veterans Affairs 
     recently initiated a program that permits veterans to apply 
     at one location for benefits such as health care, disability 
     compensation, education, and job training.
       (b) Annual Plan.--Subchapter II of chapter 5 of title 38, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 531. Annual plan for outreach regarding veterans 
       benefits

       ``(a) Development.--The Secretary shall, on an annual 
     basis, develop a plan for the outreach activities of the 
     Department regarding veterans benefits during the year 
     covered by such plan.
       ``(b) Plan Elements.--(1) Each plan under this section 
     shall include the following elements:
       ``(A) A program to encourage veterans to apply for veterans 
     benefits.
       ``(B) A program to identify veterans entitled to veterans 
     benefits who are not currently receiving such benefits.
       ``(C) A program to notify veterans of any modifications to 
     veterans benefits programs.
       ``(D) Such other programs or elements as the Secretary 
     considers appropriate.
       ``(2) A plan under this section for a year may consist of 
     an update of the plan under this section for the previous 
     year, taking into account changes in circumstances over time.
       ``(c) Consultation.--In developing a plan under subsection 
     (a), the Secretary shall consult with directors of the 
     veterans agencies of the States, appropriate representatives 
     of veterans service organizations and other veterans advocacy 
     groups, and such other persons as the Secretary considers 
     appropriate.
       ``(d) Implementation.--The Secretary shall implement each 
     plan developed under this section.
       ``(e) Veterans Benefits Defined.--In this section the term 
     `veterans benefits' means benefits for veterans under the 
     laws administered by the Secretary.''.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 5 of that title is amended by inserting 
     after the item relating to section 530 the following new 
     item:

``531. Annual plan for outreach regarding veterans benefits.''.
                                 ______
                                 
      By Mr. FITZGERALD:
  S. 613. A bill to amend the Internal Revenue Code of 1986 to enhance 
the use of the small ethanol producer credit, to the Committee on 
Finance.
  Mr. FITZGERALD. 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. 613

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

     SECTION 1. SMALL ETHANOL PRODUCER CREDIT.

       (a) Allocation of Alcohol Fuels Credit to Patrons of a 
     Cooperative.--Section 40(g) of the Internal Revenue Code of 
     1986 (relating to alcohol used as fuel) is amended by adding 
     at the end the following new paragraph:
       ``(6) Allocation of small ethanol producer credit to 
     patrons of cooperative.--
       ``(A) Election to allocate.--
       ``(i) In general.--In the case of a cooperative 
     organization described in section 1381(a), any portion of the 
     credit determined under subsection (a)(3) for the taxable 
     year may, at the election of the organization, be apportioned 
     pro rata among patrons of the organization on the basis of 
     the quantity or value of business done with or for such 
     patrons for the taxable year.
       ``(ii) Form and effect of election.--An election under 
     clause (i) for any taxable year shall be made on a timely 
     filed return for such year. Such election, once made, shall 
     be irrevocable for such taxable year.
       ``(B) Treatment of organizations and patrons.--The amount 
     of the credit apportioned to patrons under subparagraph (A)--
       ``(i) shall not be included in the amount determined under 
     subsection (a) with respect to the organization for the 
     taxable year,
       ``(ii) shall be included in the amount determined under 
     subsection (a) for the taxable year of each patron for which 
     the patronage dividends for the taxable year described in 
     subparagraph (A) are included in gross income, and

[[Page S2899]]

       ``(iii) shall be included in gross income of such patrons 
     for the taxable year in the manner and to the extent provided 
     in section 87.
       ``(C) Special rules for decrease in credits for taxable 
     year.--If the amount of the credit of a cooperative 
     organization determined under subsection (a)(3) for a taxable 
     year is less than the amount of such credit shown on the 
     return of the cooperative organization for such year, an 
     amount equal to the excess of--
       ``(i) such reduction, over
       ``(ii) the amount not apportioned to such patrons under 
     subparagraph (A) for the taxable year,
     shall be treated as an increase in tax imposed by this 
     chapter on the organization. Such increase shall not be 
     treated as tax imposed by this chapter for purposes of 
     determining the amount of any credit under this subpart or 
     subpart A, B, E, or G.''.
       (b) Improvements to Small Ethanol Producer Credit.--
       (1) Definition of small ethanol producer.--Section 40(g) of 
     the Internal Revenue Code of 1986 (relating to definitions 
     and special rules for eligible small ethanol producer credit) 
     is amended by striking ``30,000,000'' each place it appears 
     and inserting ``60,000,000''.
       (2) Small ethanol producer credit not a passive activity 
     credit.--Clause (i) of section 469(d)(2)(A) of such Code is 
     amended by striking ``subpart D'' and inserting ``subpart D, 
     other than section 40(a)(3),''.
       (3) Allowing credit against minimum tax.--
       (A) In general.--Subsection (c) of section 38 of such Code 
     (relating to limitation based on amount of tax) is amended by 
     redesignating paragraph (3) as paragraph (4) and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Special rules for small ethanol producer credit.--
       ``(A) In general.--In the case of the small ethanol 
     producer credit--
       ``(i) this section and section 39 shall be applied 
     separately with respect to the credit, and
       ``(ii) in applying paragraph (1) to the credit--

       ``(I) subparagraphs (A) and (B) thereof shall not apply, 
     and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the small 
     ethanol producer credit).

       ``(B) Small ethanol producer credit.--For purposes of this 
     subsection, the term `small ethanol producer credit' means 
     the credit allowable under subsection (a) by reason of 
     section 40(a)(3).''.
       (B) Conforming amendment.--Subclause (II) of section 
     38(c)(2)(A)(ii) of such Code is amended by striking 
     ``(other'' and all that follows through ``credit)'' and 
     inserting ``(other than the empowerment zone employment 
     credit or the small ethanol producer credit)''.
       (4) Small ethanol producer credit not added back to income 
     under section 87.--Section 87 of such Code (relating to 
     income inclusion of alcohol fuel credit) is amended to read 
     as follows:

     ``SEC. 87. ALCOHOL FUEL CREDIT.

       ``Gross income includes an amount equal to the sum of--
       ``(1) the amount of the alcohol mixture credit determined 
     with respect to the taxpayer for the taxable year under 
     section 40(a)(1), and
       ``(2) the alcohol credit determined with respect to the 
     taxpayer for the taxable year under section 40(a)(2).''.
       (c) Conforming Amendment.--Section 1388 of such Code 
     (relating to definitions and special rules for cooperative 
     organizations) is amended by adding at the end the following 
     new subsection:
       ``(k) Cross Reference.--For provisions relating to the 
     apportionment of the alcohol fuels credit between cooperative 
     organizations and their patrons, see section 40(g)(6).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. HUTCHINSON (for himself and Mr. Bond):
  S. 616. A bill to amend the Internal Revenue Code of 1986 to repeal 
the alternative minimum tax on individuals, to raise the exemption for 
small businesses from such tax, and for other purposes; to the 
Committee on Finance.
  Mr. HUTCHINSON. Mr. President, today I am proud to join with the 
Chairman of the Senate Small Business Committee, Senator Kit Bond, in 
introducing the Real AMT Relief Act of 2001. This legislation is 
intended to provide the hard working taxpayers of America relief from 
the onerous Alternative Minimum Tax, AMT.
  The AMT, set up more than 30 years ago to help ensure that wealthy 
taxpayers paid their fair share of taxes, is hitting middle-income 
families the hardest. Most vulnerable are the hard working taxpayers 
with several children, interest deductions from second mortgages, 
capital gains, high state and local taxes, and incentive stock options.
  While only 19,000 people paid the AMT in 1970, roughly 1,000,000 
taxpayers had to pay it in 1999. According to the Joint Tax Committee, 
it is estimated that by 2011, more than 16 million taxpayers will have 
to struggle with the AMT.
  Another group of taxpayers being slammed by the AMT are America's 
small business owners. As my good friend Senator Bond has said, the 
complexity of the AMT forces many small businesses to spend valuable 
resources on tax professionals and high priced accountants to determine 
whether or not the AMT applies to them. Many small business owners in 
Arkansas have told me that instead of spending the time and the money 
trying to comply with the AMT, they would rather use those resources to 
hire new workers and provide benefits to their workers.
  The AMT has also had a dramatic impact on high tech communities all 
across the country. The recent stock market collapse has left many high 
tech employees, from executives to the rank and file, facing enormous 
AMT bills based on long-gone paper profits. Some who exercised 
incentive options and owe the tax may have no choice but to plunder 
401(k)s, sell homes, borrow from parents, arrange IRS payment plans and 
consider bankruptcy.
  In this scenario, the AMT is based on paper profits on the day you 
exercise the option and buy stock even if the stock later crashes and 
you lose the profits. It's triggered when you exercise an incentive 
stock option in one year and hold the stock into a later calendar year. 
One thing is clear about stock options: Too many people know too little 
about them. An Oppenheimer Funds survey last year indicated that 75 
percent of stock-option holders weren't familiar with the Alternative 
Minimum Tax, and that 52 percent knew ``little'' or ``nothing at all'' 
about the tax implications of exercising options.
  The time to help these taxpayers is now. The Real AMT Relief Act of 
2001 provides badly needed relief to all taxpayers. Based on the 
recommendations of the IRS National Taxpayer Advocate, the Real AMT 
Relief Act of 2001 completely repeals the individual AMT. Eliminating 
20 percent of the AMT each year until it is completely eliminated in 
2006. This helps lift the burden off both the individual as well as the 
small business taxpayer. We further help to completely protect the 
small business owner by expanding the small business exemption from $5 
million to $10 million.
  I look forward to helping provide this badly needed tax relief to 
America's growing middle class. It is truly an honor to be joined in 
this effort with the distinguished Chairman of the Senate Small 
Business Committee, Senator Bond. His knowledge and passion for this 
issue is second to none. I urge my colleagues to support passage of the 
Real AMT Relief Act of 2001.
  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. 616

       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 ``Real AMT Relief Act of 
     2001''.

      SEC. 2. ALTERNATIVE MINIMUM TAX.

       (a) Repeal of Alternative Minimum Tax on Individuals.--
       (1) In general.--Section 55(a) of the Internal Revenue Code 
     of 1986 (relating to alternative minimum tax imposed) is 
     amended by adding at the end the following new flush 
     sentence:

     ``For purposes of this title, the tentative minimum tax on 
     any taxpayer other than a corporation for any taxable year 
     beginning after December 31, 2004, shall be zero.''.
       (2) Reduction of tax on individuals prior to repeal.--
     Section 55 of such Code (relating to alternative minimum tax 
     imposed) is amended by adding at the end the following new 
     subsection:
       ``(f) Phaseout of Tax on Individuals.--
       ``(1) In general.--The tax imposed by this section on a 
     taxpayer other than a corporation for any taxable year 
     beginning after December 31, 2000, and before January 1, 
     2005, shall be the applicable percentage of the tax which 
     would be imposed but for this subsection.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage shall be determined in 
     accordance with the following table:


[[Page S2900]]


    ``For taxable years                                  The applicable
      beginning                                         percentage is--
      in calendar year--
      2001..........................................................80 
      2002..........................................................60 
      2003..........................................................40 
      2004......................................................20.''. 

       (3) Nonrefundable personal credits fully allowed against 
     regular tax liability.--
       (A) In general.--Section 26(a) of such Code (relating to 
     limitation based on amount of tax) is amended to read as 
     follows:
       ``(a) Limitation Based on Amount of Tax.--The aggregate 
     amount of credits allowed by this subpart for the taxable 
     year shall not exceed the taxpayer's regular tax liability 
     for the taxable year.''.
       (B) Child credit.--Section 24(d) is amended by striking 
     paragraph (2) and by redesignating paragraph (3) as paragraph 
     (2).
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2000.
       (b) Income Averaging Not To Increase Alternative Minimum 
     Tax Liability.--
       (1) In general.--Section 55(c) of the Internal Revenue Code 
     of 1986 (relating to regular tax) is amended by redesignating 
     paragraph (2) as paragraph (3) and by inserting after 
     paragraph (1) the following:
       ``(2) Coordination with income averaging for farmers.--
     Solely for purposes of this section, section 1301 (relating 
     to averaging of farm income) shall not apply in computing the 
     regular tax.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2000.
       (c) Expansion of the Exemption From the Alternative Minimum 
     Tax for Small Corporations.--
       (1) In general.--Section 55(e)(1)(A) of the Internal 
     Revenue Code of 1986 (relating to exemption for small 
     corporations) is amended to read as follows:
       ``(A) $10,000,000 gross receipts test.--The tentative 
     minimum tax of a corporation shall be zero for any taxable 
     year if the corporation's average annual gross receipts for 
     all 3-taxable-year periods ending before such taxable year 
     does not exceed $10,000,000. For purposes of the preceding 
     sentence, only taxable years beginning after December 31, 
     1997, shall be taken into account.''.
       (2) Gross receipts test for first 3-year period.--Section 
     55(e)(1)(B) of such Code (relating to exemption for small 
     corporations) is amended to read as follows:
       ``(B) $7,500,000 gross receipts test for first 3-year 
     period.--Subparagraph (A) shall be applied by substituting 
     `$7,500,000' for `$10,000,000' for the first 3-taxable-year 
     period (or portion thereof) of the corporation which is taken 
     into account under subparagraph (A).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2000.

  Mr. BOND. Mr. President, I rise today to join my colleague from 
Arkansas, Senator Hutchinson, in introducing the Real AMT Relief Act of 
2001. This bill focuses on an issue of growing concern to many 
individual taxpayers and especially small business owners, the 
Alternative Minimum Tax, AMT.
  The Real AMT Relief Act addresses the increasingly onerous 
consequences of the individual AMT as well as the corporate AMT. 
According to the Joint Tax Committee, in 1998, the most recent taxpayer 
data available, there were 853,000 individual tax returns that paid 
AMT. That number constituted 0.7 percent of all individual income tax 
returns--a relatively small number of returns. In contrast, the Joint 
Tax Committee estimates that by 2011, 11.2 percent of individual income 
tax returns will have AMT liability, that's more than 16 million 
taxpayers who will have to grapple with this burdensome tax.
  Sadly, many of these AMT taxpayers will be individuals in the middle 
income brackets and not because they are taking advantage of special 
tax loopholes to avoid paying their share of taxes. No, these 
hardworking men and women will be hit with the AMT because they are 
taking advantage of the tax benefits that Congress accorded them, such 
as the child tax credit, the adoption tax credit, the dependent care 
tax credit, and the HOPE Scholarship and Lifetime Learning tax credit, 
to name a few. So instead of receiving a few extra dollars to help 
raise their children, these taxpayers lose much of these benefits and 
get to deal with the complex AMT rules as a bonus prize.
  For other taxpayers, the AMT will not increase their tax bill. But 
because the AMT is a separate tax system, they will have to calculate 
their taxes twice, once under the regular rules and a second time under 
the AMT, just to make sure they do not owe additional taxes. With an 
already complicated set of tax rules for the regular tax, the last 
thing these individuals need is a second set of calculations.
  Another significant group of taxpayers who have largely been 
forgotten in the AMT debate are the small business owners. According to 
recent IRS estimates, there were more than 20.7 million tax returns 
filed by sole-proprietorships, partnerships, and S corporations with 
receipts of less than $1 million. In contrast, there were 2.75 million 
C corporations. As a result, a whopping 88 percent of these businesses, 
with receipts under $1 million, are pass-through entities, businesses 
that are taxed only at the individual owner level.
  For these sole proprietors, partners, and S corporation shareholders, 
the individual AMT increases their tax liability by, among other 
things, reducing depreciation and depletion deductions, limiting net 
operating loss treatment, eliminating the deductibility of State and 
local taxes, and curtailing the expensing of research and 
experimentation costs. In addition, because of its complexity, this tax 
forces small business owners to waste precious funds on tax 
professionals to determine whether the AMT even applies. Just think of 
the economic growth and new jobs that could be created if we could 
eliminate the compliance costs of the individual AMT.

  The Real AMT Relief Act does just that. Based on the recommendation 
of the IRS National Taxpayer Advocate in his 2001 Report to Congress, 
the bill provides for the complete repeal of the individual AMT. This 
will be accomplished by eliminating 20 percent of the AMT each year 
until it is completely repealed in 2006. That's welcome relief for 
individual taxpayers and an enormous burden lifted off the shoulders of 
America's small businesses.
  For small corporations, the AMT story is much the same, high 
compliance costs and additional taxes draining away scarce capital from 
their businesses. In fact, the Committee on Small Business, which I 
chair, received testimony at a hearing in the last Congress that the 
corporate AMT resulted in a $95,000 tax bill for one small business in 
Kansas City, all because the company purchased life insurance on the 
father, who was the primary owner of the business, to prevent the 
estate tax from closing the company down. That type of nonsense must 
come to an end here and now.
  In 1997, Congress established an exemption from the corporate AMT for 
small businesses that are organized as taxable corporations if they 
meet certain gross receipt tests. Under that exemption, a corporation 
initially qualifies if its average gross receipts were $5 million or 
less during its first three taxable years beginning after December 31, 
1993. Thereafter, a small corporation can continue to qualify for the 
AMT exemption for so long as its average gross receipts for the prior 
three-year period do not exceed $7.5 million.
  With the growth and success of small corporations, it is time to 
expand that exemption and continue to provide these small enterprises 
with relief from the corporate AMT. Accordingly, for small corporate 
taxpayers, the Real AMT Relief Act increases the current exemption from 
the corporate AMT. As a result, a small corporation will initially 
qualify for the exemption if its average gross receipts are $7.5 
million or less during its first three taxable years. In subsequent 
years, a small corporation will continue to qualify for as long as its 
average gross receipts for the prior 3-year period do not exceed $10 
million.
  Mr. President, small businesses represent more than 99 percent of all 
employers, employ 53 percent of the private work force, and create 
about 75 percent of the new jobs in this country. In addition, these 
small firms contribute 57 percent of all sales in this country, and 
they are responsible for 51 percent of the private gross domestic 
product. With that kind of performance, small businesses deserve tax 
relief and simplification. The Real AMT Relief Act comes through on 
both accounts. I applaud Senator Hutchinson for his leadership on this 
issue, and I am proud to be the chief co-sponsor of this important 
legislation.
                                 ______
                                 
      By Mr. COCHRAN:
  S. 617. A bill to amend the Elementary and Secondary Education Act of 
1965 to improve student and teacher performance and access to education 
in the critically challenged Lower Mississippi Delta region; to the 
Committee

[[Page S2901]]

on Health, Education, Labor, and Pensions.
  Mr. COCHRAN. Mr. President, today I am introducing the Lower 
Mississippi Delta Education Access and Improvement Act of 2001.
  The character and fabric of our Nation have been significantly 
enhanced by the Mississippi Delta's unique blend of the talents that 
created blues music and Pulitzer Prize literature. But the problems 
facing this region today overshadow the triumphs of the past and 
foretell a future without hope. These problems include: below average 
reading skills among elementary school children, low graduation rates 
and ACT scores among high school students, lower levels of 
accreditation among teachers, and poor scores from the State Department 
of Education Performance Based Accreditation System. Poverty is another 
issue facing the school districts, evidenced by the fact that 86 
percent of the students are eligible for free lunch.
  However, there is a sense of optimism among community leaders and 
educators about overcoming the difficulties that confront the 
educational system of the area. Universities, community based 
organizations, and schools are developing comprehensive initiatives to 
achieve new success in teacher training and retention, preschool 
learning readiness, parental education, school-wide performance, birth 
to kindergarten preventative health care and immunization delivery. 
These are the people who best know their problems, and more 
importantly, how to solve them. In my opinion, these are efforts that 
deserve federal support.
  This bill will authorize grants to institutions of higher learning 
located in the Lower Mississippi Delta for the improvement of education 
and student and teacher performance.
  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. 617

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

     SECTION 1. LOWER MISSISSIPPI DELTA EDUCATION ACCESS AND 
                   IMPROVEMENT.

       Title XIII of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 8601 et seq.) is amended by adding at the end 
     the following:

   ``Part E--Lower Mississippi Delta Education Access and Improvement

     ``SEC. 13501. SHORT TITLE.

       ``This part may be cited as the ``Lower Mississippi Delta 
     Education Access and Improvement Act''.

     ``SEC. 13502. DEFINITIONS.

       ``In this part:
       ``(1) Eligible institution.--The term `eligible 
     institution' means an institution of higher education--
       ``(A) that has a school or college of education located in 
     the Lower Mississippi Delta; and
       ``(B) that has an established, working partnership or 
     consortium with one or more local educational agencies and 
     nonprofit and community organizations, with the purpose of 
     such partnership or consortium being the improvement of 
     education in the Lower Mississippi Delta.
       ``(2) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001).
       ``(3) Lower mississippi delta.--The term `Lower Mississippi 
     Delta' means those counties designated as being part of the 
     Delta Regional Authority jurisdiction in the States of 
     Mississippi, Arkansas, Louisiana, and Tennessee.
       ``(4) Medically underserved population.--The term 
     `medically underserved population' has the meaning given the 
     term in section 330(b)(3) of the Public Health Service Act 
     (42 U.S.C. 254b(b)(3)).

     ``SEC. 13503. PROGRAM AUTHORIZED.

       ``(a) In General.--The Secretary is authorized to award 
     grants to eligible institutions to allow such eligible 
     institutions to carry out the activities described in section 
     13506.
       ``(b) Limitation.--The Secretary may award not fewer than 1 
     or more than 4 grants under this part in each fiscal year.
       ``(c) Period.--Grants under this part may be awarded for 
     periods of up to 5 years.

     ``SEC. 13504. APPLICATION.

       ``(a) In General.--Each eligible institution desiring a 
     grant under this part shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       ``(b) Contents.--Each application submitted under 
     subsection (a) shall contain a description of the activities 
     that the eligible institution desires to carry out using 
     funds made available under this part, including a description 
     of the specific population to be served by such activities.

     ``SEC. 13505. PRIORITY.

       ``In awarding grants under this part, the Secretary shall 
     give priority to applications describing proposed projects in 
     counties--
       ``(1) that possess no single incorporated municipality 
     having a population of more than 75,000 people;
       ``(2) in which the local school districts serve populations 
     of which more than 50 percent of all students are eligible 
     for free or reduced priced lunches; and
       ``(3) in which more than 50 percent of the population is 
     medically underserved.

     ``SEC. 13506. AUTHORIZED ACTIVITIES.

       ``(a) In General.--Each eligible institution receiving a 
     grant under this part shall use amounts received under the 
     grant for activities that focus on research, development, and 
     dissemination of programs, plans or demonstration projects 
     designed to improve the following:
       ``(1) School-wide performance.
       ``(2) Teacher and administrator training.
       ``(3) Teacher retention.
       ``(4) Parent and mentor education.
       ``(5) Assessment.
       ``(6) Cultural based education and regional identity 
     building.
       ``(7) Workforce.
       ``(8) Family literacy.
       ``(9) Preschool learning readiness.
       ``(10) Birth to kindergarten components of early 
     preventative health care, educational intervention, and 
     immunization delivery.
       ``(b) Limitation.--Grants awarded under this part shall be 
     used for projects only in the predominately rural and 
     agriculture-centered counties and communities of the Lower 
     Mississippi Delta.

     ``SEC. 13507. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     part $18,000,000,000 for fiscal year 2002, and such sums as 
     may be necessary for each of the 4 succeeding fiscal 
     years.''.
                                 ______
                                 
      By Mr. SPECTER:
  S. 618. A bill to designate certain lands in the Valley Forge 
National Historical Park as the Valley Forge National Cemetery, to the 
Committee on Energy and Natural Resources.
  Mr. SPECTER. Mr. President, today I renew my efforts that began on 
September 29, 1998, to authorize the creation of the Valley Forge 
National Cemetery. I am introducing this bill to coincide with a news 
conference that Congressman Joseph Hoeffel is holding today in 
Montgomery County, PA, and I join with the entire Pennsylvania 
delegation in the House, in announcing our joint intention to see this 
matter resolved this year. Congressman Hoeffel will introduce a 
companion bill, and I am pleased to join him in this effort. I had 
hoped to be with Congressman Hoeffel at Valley Forge today, but was not 
able to join him due to a prior commitment. I nevertheless commend him, 
and the entire Pennsylvania delegation in the House, for their 
leadership in advancing this legislation. I am anxious to begin the 
fight for this worthy endeavor.
  A national cemetery located at Valley forge would not only be a 
fitting final resting place for the Nation's veterans because of the 
area's historical significance, it would also provide the veterans of 
southeastern Pennsylvania and southern New Jersey with their only 
national cemetery burial option within a reasonable distance from the 
homes of their loved ones.
  This legislation would designate 200 acres of land within the Valley 
Forge National Historic Park for use by the Department of Veterans 
Affairs, VA, to create a national cemetery. The cemetery would fall 
under the jurisdiction of VA's National Cemetery Administration, the 
agency charged with administering 119 national cemeteries nationwide.
  The need for a national cemetery at or near Valley Forge first gained 
my attention in 1998. Back then, I joined with then-Congressman Jon 
Fox, and the entire Pennsylvania delegation in the House, in 
introducing legislation, S. 2530, to create the Valley Forge National 
Cemetery. Unfortunately, that measure was not acted on after its 
referral to the Senate Energy and Natural Resource Committee. It is my 
understanding that opposition to the legislation arouse due to 
concerns, misplaced concerns, in my estimation, that the presence of a 
veterans' cemetery might somehow be inconsistent with the historic 
nature of the Valley Forge Park site.
  I am advised that the National Park Service, NPS, the agency charged 
with administering over 3,000 acres of federally owned land at the 
Valley Forge National Historic Park, has expressed reservations about 
giving up Valley Forge land for cemetery use. I am told that NPS is 
concerned that a cemetery

[[Page S2902]]

would denigrate the historical significance of the Park. While these 
concerns may be held in good faith, I believe the presence of national 
cemeteries at other historical sites proves that the historical 
significance of an event or area is heightened not degraded, by the 
presence of a cemetery honoring those who served in the military.
  Two NPS-administered cemeteries, Gettysburg National Cemetery and 
Andersonville National Cemetery, prove my point. Although Gettysburg is 
not closed for new burials, it is the final resting place of veterans 
from all of the country's major wars; Andersonville is still open to 
new burials. Does the presence of deceased veterans at these Civil War 
sites detract from their solemnity? I think not. In any case, the 
acreage that would be transferred to VA under my bill is not the site 
of the original 1777 encampment of General Washington and his men.
  The need for a national cemetery in the Philadelphia area is 
particularly acute. The three closest national cemeteries for 
Philadelphians--the Philadelphia, Beverly, and Finns Point national 
cemeteries--have been closed to new burials since the 1960s. The 
closest open national cemetery at Indiantown Gap, PA, is over 2 hours 
away and, at best, will only remain open for new burials until 2030.
  Pennsylvania has the fifth largest 65-and-older veteran population in 
the United States. Estimates from the VA indicate that WWII veterans 
are passing away at a rate of 1,000 a day, and that the number of 
annual veteran deaths will reach its peak in 2008. Since national 
cemeteries take, on average, 7 years to build, we must move quickly to 
provide an appropriate burial option for Philadelphia-area veterans.
  Our Nation's national cemeteries provide a lasting, dignified 
memorial to the service so many veterans have given to our country. I 
have received many letters from widows and family members of veterans 
explaining how much having their loved ones; service honored by an 
appropriate burial can mean. Providing lasting tributes to this 
country's heroes sends several messages to all our citizens. It reminds 
them that we uphold the virtues of serving in the military; we honor 
the sacrifices veterans have made; and we will never forget that our 
freedoms are linked with their sacrifices. It is time to move 
expeditiously to provide Philadelphia area veterans with the 
opportunity to be so remembered and honored by authorizing a national 
cemetery at Valley Forge.
  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. 618

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

     SECTION 1. DESIGNATION OF LANDS AS VALLEY FORGE NATIONAL 
                   CEMETERY.

       (a) In General.--Not more than 200 acres of land located 
     within the Valley Forge National Historical Park on the day 
     before the date of the enactment of this Act are hereby 
     designated as the Valley Forge National Cemetery. 
     Administrative jurisdiction over such lands is hereby 
     transferred to the Secretary of Veterans Affairs and such 
     lands shall be administered as a national cemetery in 
     accordance with chapter 24 of title 38, United States Code 
     (relating to national cemeteries and memorials).
       (b) Adjustment of Park Boundaries.--Subsection (b) of 
     section 2 of the Act entitled ``An Act to authorize the 
     Secretary of the Interior to establish the Valley Forge 
     National Historical Park in the Commonwealth of Pennsylvania, 
     and for other purposes'' (16 U.S.C. 410aa-1) is amended by 
     striking ``map entitled `Valley Forge National Historical 
     Park', dated June 1979, and numbered VF-91,001'' and 
     inserting ``map entitled `Valley Forge National Historical 
     Park', dated ____, and numbered ____''.
                                 ______
                                 
      By Mr. DeWine (for himself, Mr. Hutchinson, Mr. Warner, Mr. 
        Allen, Mr. Helms, Mr. Hagel, Mr. Grassley, Mr. Santorum, and 
        Mr. Sessions):
  S. 619. A bill to establish a grant program that provides incentives 
for States to enact mandatory minimum sentences for certain firearms 
offenses, and for other purposes; to the Committee on the Judiciary.
  Mr. DeWINE. Mr. President, today I rise to introduce Project Exile: 
The Safe Streets and Neighborhoods Act of 2001, along with my 
distinguished colleagues Senator Hutchinson from Arkansas, and Senators 
Warner, Allen, Hagel, Helms, Grassley, and Santorum. I introduced this 
bill in the 106th Congress, and today, we again are taking a 
commonsense step to reduce gun violence and help make our communities 
safer and more secure.
  Often, in the heat of the rhetoric, the real issue in gun control 
debate has become lost in the flurry of words. We must not, however, 
lose sight of the real issue, that is the need to reduce gun violence. 
While gun control efforts are often controversial, there is nothing 
controversial about protecting our children, our families, our 
communities by keeping guns out of the wrong hands, not those of law-
abiding citizens, but those of criminals and violent offenders.
  Criminals with guns are killing our children. They are killing our 
friends and our neighbors. I am very troubled by gun violence. However, 
I firmly believe that the Bush Administration will aggressively go 
after those who commit crimes with a gun.
  Right now, current law makes it a federal crime for a convicted felon 
to ever possess a firearm. It is also against federal law to use a gun 
to commit any crime, even a State crime. Under federal law, the 
sentences for these kinds of crimes are mandatory, no second chance, no 
parole.
  In the late 1980s, President George Bush made enforcement of these 
gun laws a priority. His Justice Department told local sheriffs, chiefs 
of police, and prosecutors that if they caught someone committing a 
crime in which a gun was used, or even caught a felon with a gun, the 
Federal Government would take the case, and put that criminal behind 
bars for at least five years, no exceptions. During the last 18 months 
of the Bush Administration, more than 2,000 criminals with guns were 
put behind bars.
  Unfortunately, consistent, effective enforcement ended once the 
Clinton administration took office. Between 1992 and 1998, for example, 
the number of gun cases filed for prosecution dropped from 7,048 to 
about 3,807, that's a 46 percent decrease. As a result, the number of 
federal criminal convictions for firearms offenses has fallen 
dramatically.
  For 6 years, the Clinton Justice Department refused to prosecute 
those criminals who use a gun to commit State crimes, even though the 
use of a gun to commit those crimes could be charged as a Federal 
crime. The only cases they would prosecute were those in which a 
federal crime had been committed and a gun was used in the commission 
of that crime.
  Even worse, some federal gun laws were almost never enforced by the 
prior administration. For instance, while Brady law background checks 
have stopped nearly 300,000 prohibited purchasers of firearms from 
buying guns, less than .1 percent have actually been prosecuted.
  I questioned Attorney General Ashcroft during his recent confirmation 
hearing, as well as in private, about the aggressive prosecution of gun 
cases. He shared our view that current law prohibits violent felons 
from possessing guns, and so we should aggressively enforce the laws 
that take guns away from violent criminals. We should take those guns 
away before they use them to injure and kill people.
  We have often heard that 6 percent of the criminals commit 70 percent 
of the crimes. Well, if you have a violent criminal who illegally 
possesses a gun, I can bet you that he is part of that 6 percent! He's 
one of the bad guys, and we should put him away before he has a chance 
to use that gun again.
  Our goal should be to take all of these armed criminals off the 
streets. That is how we can reduce crime and save lives. And, we can do 
it now, before another student, or any American, becomes a victim of 
gun violence.
  This bill offers the kind of practical solution we need to thwart gun 
crimes, now. It would provide $100 million in grants over 5 years to 
those States that agree to enact their own mandatory minimum five-year 
jail sentences for armed criminals who use or possess an illegal gun. 
As an alternative, a State also can qualify for the grants by turning 
armed criminals over for Federal prosecution under existing firearms 
laws. This would be done in the same manner in which it was done in the 
prior Bush administration. In our bill,

[[Page S2903]]

however, a State wishing to participate in this program has the option 
of prosecuting armed felons in either State or federal court.

  Qualifying States can use their grants for any variety of purposes 
that would strengthen their criminal or juvenile justice systems' 
ability to deal with violent criminals.
  This approach works, as Senators Warner and Allen can tell you first-
hand. In Virginia, for example, the State instituted a program in 1997, 
also called ``Project Exile.'' Their program is based on one simple 
principle: Any criminal caught with a gun will serve a minimum 
mandatory sentence of 5 years in prison. Period. End of story. As a 
result, gun-toting criminals are being prosecuted six times faster, and 
serving sentences up to four times longer than they otherwise would 
under State law. Moreover, the homicide rate in Richmond already has 
dropped 50-percent!
  Every State should have the opportunity to implement Project Exile in 
their high-crime communities. The bill that we have introduced will 
make this proven, commonsense approach to reducing gun violence 
available to every State.
  It will take guns out of the hands of violent criminals. It will make 
our neighborhoods safer. It will save lives. I urge my colleagues on 
both sides of the aisle to support and pass this legislation.
  Mr. President, I ask that the full text of the bill be printed in the 
Record.
  There being no objection the bill was ordered to be printed in the 
Record, as follows:

                                 S. 619

       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 ``Project Exile: The Safe 
     Streets and Neighborhoods Act of 2001''.

     SEC. 2. FIREARMS SENTENCING INCENTIVE GRANTS.

       (a) Program Established.--Title II of the Violent Crime 
     Control and Law Enforcement Act of 1994 (Public Law 103-322; 
     108 Stat. 1815) is amended--
       (1) by redesignating subtitle D as subtitle E; and
       (2) by inserting after subtitle C the following:

           ``Subtitle D--Firearms Sentencing Incentive Grants

     ``SEC. 20351. DEFINITIONS.

       ``In this subtitle:
       ``(1) Firearm.--The term `firearm' has the meaning given 
     the term in section 921(a) of title 18, United States Code.
       ``(2) Part 1 violent crime.--The term `part 1 violent 
     crime' means murder and nonnegligent manslaughter, forcible 
     rape, robbery, and aggravated assault, as reported to the 
     Federal Bureau of Investigation for purposes of the Uniform 
     Crime Reports.
       ``(3) Serious drug trafficking crime.--The term `serious 
     drug trafficking crime' means an offense under State law for 
     the manufacture or distribution of a controlled substance, 
     for which State law authorizes to be imposed a sentence to a 
     term of imprisonment of not less than 10 years.
       ``(4) State.--The term `State' means a State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the United States Virgin Islands, American Samoa, Guam, 
     and the Northern Mariana Islands.
       ``(5) Unit of local government.--The term `unit of local 
     government' has the meaning given the term in section 901(a) 
     of title I of the Omnibus Crime Control and Safe Streets Act 
     of 1968 (42 U.S.C. 3791(a)).
       ``(6) Violent crime.--The term `violent crime' means murder 
     and nonnegligent manslaughter, forcible rape, robbery, and 
     aggravated assault, or a crime in a reasonably comparable 
     class of serious violent crimes, as approved by the Attorney 
     General.

     ``SEC. 20352. AUTHORIZATION OF GRANTS.

       ``(a) In General.--From amounts made available to carry out 
     this subtitle, the Attorney General shall award Firearms 
     Sentencing Incentive Grants to eligible States in accordance 
     with this subtitle.
       ``(b) Allowable Uses.--Grants awarded under this subtitle 
     may be used by a State only--
       ``(1) to support--
       ``(A) law enforcement agencies;
       ``(B) prosecutors;
       ``(C) courts;
       ``(D) probation officers;
       ``(E) correctional officers;
       ``(F) the juvenile justice system;
       ``(G) the expansion, improvement, and coordination of 
     criminal history records; or
       ``(H) case management programs involving the sharing of 
     information about serious offenders;
       ``(2) to carry out a public awareness and community support 
     program described in section 20353(a)(2); or
       ``(3) to build or expand correctional facilities.
       ``(c) Subgrants.--A State may use grants awarded under this 
     subtitle directly or by making subgrants to units of local 
     government within that State.

     ``SEC. 20353. FIREARMS SENTENCING INCENTIVE GRANTS.

       ``(a) Eligibility.--Except as provided in subsection (b), 
     to be eligible to receive a grant award under this section, a 
     State shall submit an application to the Attorney General, 
     which shall comply with the following requirements:
       ``(1) Firearms sentencing laws.--The application shall 
     demonstrate that the State has implemented firearms 
     sentencing laws requiring 1 or both of the following:
       ``(A) Any person who, during and in relation to any violent 
     crime or serious drug trafficking crime, uses or carries a 
     firearm, shall, in addition to the punishment provided for 
     that crime of violence or serious drug trafficking crime, be 
     sentenced to a term of imprisonment of not less than 5 years 
     (without the possibility of parole during that term).
       ``(B) Any person who, having not less than 1 prior 
     conviction for a violent crime, possesses a firearm, shall, 
     for such possession, be sentenced to a term of imprisonment 
     of not less than 5 years (without the possibility of parole 
     during that term).
       ``(2) Public awareness and community support program.--The 
     application shall demonstrate that the State has implemented, 
     or will implement not later than 6 months after receiving a 
     grant under this subtitle, a public awareness and community 
     support program that seeks to build support for, and warns 
     potential violators of, the firearms sentencing laws 
     implemented under paragraph (1).
       ``(3) Coordination with federal government; crime reduction 
     in high-crime areas.--The application shall provide 
     assurances that the State--
       ``(A) will coordinate with Federal prosecutors and Federal 
     law enforcement agencies whose jurisdictions include the 
     State, so as to promote Federal involvement and cooperation 
     in the enforcement of laws within that State; and
       ``(B) will allocate its resources in a manner calculated to 
     reduce crime in the high-crime areas of the State.
       ``(b) Alternate Eligibility Requirement.--
       ``(1) In general.--A State that is unable to demonstrate in 
     its application that the State meets the requirement of 
     subsection (a)(1) shall be eligible to receive a grant award 
     under this subtitle notwithstanding that inability, if that 
     State, in such application, provides assurances that the 
     State has in effect an equivalent Federal prosecution 
     agreement.
       ``(2) Equivalent federal prosecution agreement.--For 
     purposes of paragraph (1), an equivalent Federal prosecution 
     agreement is an agreement with appropriate Federal 
     authorities that ensures that 1 or more of the following:
       ``(A) If a person engages in the conduct specified in 
     subsection (a)(1)(A), but the conviction of that person under 
     State law for that conduct is not certain to result in the 
     imposition of an additional sentence as specified in that 
     subsection, that person is prosecuted for that conduct under 
     Federal law.
       ``(B) If a person engages in the conduct specified in 
     subsection (a)(1)(B), but the conviction of that person under 
     State law for that conduct is not certain to result in the 
     imposition of a sentence as specified in that subsection, 
     that person is prosecuted for that conduct under Federal law.

     ``SEC. 20354. FORMULA FOR GRANTS.

       ``(a) In General.--The amount available for grants under 
     this subtitle for any fiscal year shall be allocated to each 
     eligible State, in the ratio that the number of part 1 
     violent crimes reported by the State to the Federal Bureau of 
     Investigation for the 3 years preceding the year in which the 
     determination is made, bears to the average annual number of 
     part 1 violent crimes reported by all eligible States to the 
     Federal Bureau of Investigation for the 3 years preceding the 
     year in which the determination is made.
       ``(b) Unavailable Data.--If data regarding part 1 violent 
     crimes in any State is substantially inaccurate or is 
     unavailable for the 3 years preceding the year in which the 
     determination is made, the Attorney General shall utilize the 
     best available comparable data regarding the number of 
     violent crimes for the previous year for the State for the 
     purposes of the allocation of funds under this subtitle.

     ``SEC. 20355. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Authorizations.--There are authorized to be 
     appropriated to carry out this subtitle--
       ``(1) $10,000,000 for fiscal year 2001;
       ``(2) $15,000,000 for fiscal year 2002;
       ``(3) $20,000,000 for fiscal year 2003;
       ``(4) $25,000,000 for fiscal year 2004; and
       ``(5) $30,000,000 for fiscal year 2005.
       ``(b) Limitations on Funds.--
       ``(1) Uses of funds.--Funds made available pursuant to this 
     subtitle shall be used only to carry out the purposes 
     described in section 20352(b).
       ``(2) Nonsupplanting requirement.--Funds made available 
     pursuant to this section shall not be used to supplant State 
     funds, but shall be used to increase the amount of funds that 
     would, in the absence of Federal funds, be made available 
     from State sources.
       ``(3) Administrative costs.--Not more than 3 percent of the 
     funds made available

[[Page S2904]]

     pursuant to this section for a fiscal year shall be available 
     to the Attorney General for purposes of administration, 
     research and evaluation, technical assistance, and data 
     collection.
       ``(4) Carryover of appropriations.--Funds appropriated 
     pursuant to this section during any fiscal year shall remain 
     available until expended.
       ``(5) Matching funds.--The Federal share of a grant awarded 
     under this subtitle may not exceed 90 percent of the costs of 
     a proposal as described in an application approved under this 
     subtitle.

     ``SEC. 20356. REPORT BY THE ATTORNEY GENERAL.

       ``Beginning on October 1, 2001, and on each subsequent July 
     1 thereafter, the Attorney General shall submit to the 
     Committee on the Judiciary of the Senate and the Committee on 
     the Judiciary of the House of Representatives a report on the 
     implementation of this subtitle. The report shall include 
     information regarding the eligibility of States under section 
     20353 and the distribution and use of funds under this 
     subtitle.''.
       (b) Clerical Amendment.--The table of contents in section 2 
     of the Violent Crime Control and Law Enforcement Act of 1994 
     (Public Law 103-322; 108 Stat. 1796) is amended--
       (1) by redesignating the item relating to subtitle D of 
     title II as an item relating to subtitle E of that title; and
       (2) by inserting after the item relating to subtitle C of 
     title II the following:

           ``Subtitle D--Firearms Sentencing Incentive Grants

``Sec. 20351. Definitions.
``Sec. 20352. Authorization of grants.
``Sec. 20353. Firearms sentencing incentive grants.
``Sec. 20354. Formula for grants.
``Sec. 20355. Authorization of appropriations.
``Sec. 20356. Report by the Attorney General.''.

  Mr. HUTCHINSON. Mr. President, I am honored to rise today as an 
original cosponsor of Senator DeWine's legislation, Project Exile: the 
Safe Streets and Neighborhood Act 2001. This legislation will go a long 
way towards the goal of effectively reducing gun violence and saving 
lives.
  Like many of my colleagues, I am extremely concerned about gun 
violence. However, unlike many of my colleagues, I do not believe that 
more gun control laws are needed to make our Nation safer. Rather, I 
agree with the thousands of Arkansans who have written asking me to 
simply enforce the laws already in effect. I also point to the 
experience of States and cities around the Nation which have seen 
reductions in violent crime when the existing gun laws were 
aggressively enforced.
  The Project Exile legislation will provide the additional resources 
needed to expand this effort. It authorizes $100 million in block 
grants over 5 years to those States that agree to enact and enforce 
laws with mandatory minimum sentences for anyone who uses a firearm to 
commit any violent or drug trafficking crime as well as for any person 
convicted of a violent felony who is in possession of a firearm. If a 
State does not wish to change its laws, it can simply agree to ensure 
that these offenders will be turned over to the appropriate United 
States Attorney's office for prosecution under Federal firearms 
statutes.
  For some time now, I have been working to see Project Exile 
implemented in Arkansas, and I support this legislation because it will 
authorize the additional funding necessary to allow Arkansas and other 
states to implement a program which has been proven to reduce gun 
violence. Finally, I support this legislation because it is the right 
approach.
                                 ______
                                 
      By Mr. HARKIN (for himself and Mr. Wellstone):
  S. 620. A bill to amend the Elementary and Secondary Education Act of 
1965 regarding elementary school and secondary school counseling; to 
the Committee on Health, Education, Labor, and Pensions.
  Mr. HARKIN. Mr. President, you have heard the old saying that an 
ounce of prevention is worth a pound of cure. Today, I am introducing 
the Elementary and Secondary School Counseling Improvement Act of 2001 
to provide that ounce of prevention.
  After the unspeakable act of violence at Columbine High in 1999, CNN 
and USA Today conducted a public opinion poll of Americans. They asked 
what would make a difference in preventing a future outbreak of 
violence in our Nation's schools.
  The leading response was to restrict access to firearms. The second 
most popular response, a response selected by 60 percent of those 
polled, was to increase the number of counselors in our nation's 
schools.
  Counseling programs, especially in our elementary schools are an 
ounce of prevention. However, too many children do not have access to a 
well-training counselor when they need one.
  Experts tell us that to be effective, there should be at least one 
counselor for every 250 students. Unfortunately, the current student: 
counselor ratio is more than double the recommended level: 551:1. That 
means counselors are stretched to the limit and cannot devote the kind 
of attention to children that is needed.
  Children today are subjected to unprecedented social stresses, 
including the fragmentation of the family, drug and alcohol abuse, 
violence, child abuse and poverty. The legislation I am introducing 
today reauthorizes the Elementary School Counseling Demonstration Act 
and expands services to secondary schools.
  The Elementary School Counseling Program is modeled on a successful 
program in the Des Moines school district. The counseling program, 
Smoother Sailing, operates on the simple premise that we must get to 
kids early to prevent problems rather than waiting for a crisis.
  The schools participating in Smoother Sailing have seen a dramatic 
reduction in the number of students referred to the office for 
disciplinary reasons. Teachers report fewer classroom disturbances and 
principals notice fewer fights in the cafeteria and on the playground. 
The schools and classrooms have become more disciplined learning 
environments.
  The legislation authorizes $100 million. However, since the counselor 
shortage is particularly acute in elementary schools, the legislation 
requires that the first $60 million appropriated would go to provide 
grants for elementary schools.
  Earlier this month, the Nation was shocked to learn about a school 
shooting in Santee, California. We have a desperate need to improve 
counseling services in our Nation's schools and this legislation will 
be an important step in addressing this critical issue. I urge my 
colleagues to support this legislation.

                          ____________________