[Congressional Record Volume 147, Number 54 (Thursday, April 26, 2001)]
[Senate]
[Pages S3995-S4011]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. HAGEL (for himself, Mr. Kennedy, Mr. Schumer, Mrs.
[[Page S3996]]
Clinton, Mr. Durbin, Mr. Reid, and Mr. Kerry):
S. 778. A bill to expand the class of beneficiaries who may apply for
adjustment of status under section 245(i) of the Immigration and
Nationality Act by extending the deadline for classification petition
and labor certification filings; to the Committee on the Judiciary.
Mr. KENNEDY. Mr. President, it's a privilege to join Senator Hagel,
Senator Schumer, and Senator Clinton in introducing legislation to
extend section 245(i), a vital provision of U.S. immigration law, which
enables persons who are eligible for green cards to adjust their status
in the U.S., rather than have to return to their country of origin to
do so. Last year, Congress made a major effort to bring greater
fairness to the nation's immigration laws. The Legal Immigration Family
Equity Act was a sensible compromise worked out on a bipartisan basis
to deal with many of the injustices that have been so harmful and so
unfair to so many immigrant families in recent years. Included in the
legislation was a partial restoration of 245(i).
Under last year's legislation, however, immigrants are required to
file their petition by April 30th to qualify for 245(i). This fast-
approaching deadline is causing fear and confusion around the country.
Eligible immigrants are struggling to file their petitions by April
30th, but little time remains. Across the country, we hear that many
qualified persons will not be able to file their petitions by this
deadline, because not enough attorneys and legal service organizations
are available to handle their cases.
The legislation we are introducing will extend the deadline to April
30, 2002, and provide needed and well-deserved relief to members of our
immigrant communities. Spouses, children, parents and siblings of
permanent residents and U.S. citizens will be able to adjust their
status in the U.S., and avoid needless separation from their loved
ones. Similarly, businesses will be able to retain valued employees. In
addition, the INS will receive millions of dollars in additional
revenues, at no cost to taxpayers.
Extending the section 245(i) deadline is pro-family and pro-business,
and it is also good economic policy and good immigration policy. It is
consistent with the goal of legislation to reunite immigrant families.
Representatives Peter King and Charles Rangel have introduced similar
legislation in the House. Congress needs to act quickly to pass this
important legislation. I hope that our Republic and Democratic
colleagues will join us in supporting this needed extension.
______
By Mr. INOUYE:
S. 779. A bill to amend the Internal Revenue Code of 1986 to treat
certain hospital support organizations as qualified organizations for
purposes of section 514(c)(9); to the Committee on Finance.
Mr. INOUYE. Mr. President, I rise to introduce legislation that would
extend to qualified hospital support organizations the debt-financed
property rules that currently apply to tax-exempt education
institutions and pension funds. This measure is of great importance to
the 18,000 inpatients and the more then 200,000 outpatients who receive
health care services from the Queen's Health System of Hawaii.
Currently, Federal tax laws that were enacted in 1969 stand between the
wishes of Queen Emma Kaleleonalani who, in 1885, bequeathed land to the
Queen Emma Foundation to support the Queen's Health System, and the
citizens of Hawaii who depend on the Queen's Health System for health
care services.
The foundation is a nonprofit, tax-exempt, public charity. Its
purpose is to support and improve health care services in Hawaii by
committing funds generated by foundation-owned properties to the
Queen's Medical Center, an accredited teaching hospital in Honolulu
that maintains an emergency room open to all, regardless of ability to
pay, and that admits Medicare and Medicaid patients. The foundation and
the medical center are members of the Queen's Health Systems, which
also operates Molokai General Hospital, a small community hospital on
the island of Molokai. Additionally, Queen's operates clinics on
various islands, provides home health care services, supports nursing
programs at Hawaiian colleges and universities, operates a medical
library, holds health fairs, and provides other educational services
for the benefit of the Hawaiian community.
Presently, the funds that enable the foundation to support these
services are generated by Foundation-owned properties that were
bequeathed more than 100 years ago by Queen Emma. Most of the
foundation's land is now encumbered by long-term, fixed-rent commercial
and industrial ground leases. The returns from these ground leases are
extremely low, and under their terms, the foundation is unable to
increase rents to keep pace with the appreciation of land values in
Hawaii. The foundation would like to increase its cash flow by buying
out the current leases and re-leasing the land at existing market
rates. The foundation would also like to upgrade the improvements on
its lands to further enhance their revenue-generating potential.
However, current debt-financed property rules under the unrelated
business income tax would subject the revenues earned by the foundation
from its improved properties to income tax, significantly reducing the
funds available to the foundation to meet its obligation to provide
quality health care services to the citizens of Hawaii.
Colleges, universities, and pension funds are currently exempt from
the debt-financed property rules. The foundation seeks the same
treatment that presently applies to educational institutions and
pension funds. 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. 779
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TREATMENT OF CERTAIN HOSPITAL SUPPORT
ORGANIZATIONS AS QUALIFIED ORGANIZATIONS FOR
PURPOSES OF DETERMINING ACQUISITION
INDEBTEDNESS.
(a) In General.--Subparagraph (C) of section 514(c)(9) of
the Internal Revenue Code of 1986 (relating to real property
acquired by a qualifed organization) is amended by striking
``or'' at the end of clause (ii), by striking the period at
the end of clause (iii) and inserting ``; or'', and by adding
at the end the following new clause:
``(iv) a qualified hospital support organization (as
defined in subparagraph (I)).''.
(b) Qualified Hospital Support Organizations.--Paragraph
(9) of section 514(c) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subparagraph:
``(I) Qualified hospital support organizations.--For
purposes of subparagraph (C)(iv), the term `qualified
hospital support organization' means, with respect to any
eligible indebtedness (including any qualified refinancing of
such eligible indebtedness), a support organization (as
defined in section 509(a)(3)) which supports a hospital
described in section 119(d)(4)(B) and with respect to which--
``(i) more than half of its assets (by value) at any time
since its organization--
``(I) were acquired, directly or indirectly, by gift or
devise, and
``(II) consisted of real property, and
``(ii) the fair market value of the organization's real
estate acquired, directly or indirectly, by gift or devise,
exceeded 10 percent of the fair market value of all
investment assets held by the organization immediately prior
to the time that the eligible indebtedness was incurred.
For purposes of this subparagraph, the term `eligible
indebtedness' means indebtedness secured by real property
acquired by the organization, directly or indirectly, by gift
or devise, the proceeds of which are used exclusively to
acquire any leasehold interest in such real property or for
improvements on, or repairs to, such real property. A
determination under clauses (i) and (ii) of this subparagraph
shall be made each time such an eligible indebtedness (or the
qualified refinancing of such an eligible indebtedness) is
incurred. For purposes of this subparagraph, a refinancing of
such an eligible indebtedness shall be considered qualified
if such refinancing does not exceed the amount of the
refinanced eligible indebtedness immediately before the
refinancing.''.
(c) Effective Date.--The amendments made by this section
shall apply to indebtedness incurred on or after the date of
the enactment of this Act.
______
By Mr. INHOFE:
S. 780. A bill to amend the Internal Revenue Code of 1986 to allow
individuals who do not itemize their deductions a deduction for a
portion of their charitable contributions, and for other purposes; to
the Committee on Finance.
Mr. INHOFE. Mr. President, I rise today to introduce legislation that
[[Page S3997]]
would create a new era in charitable giving across America. My bill,
the Neighbor to Neighbor Act, includes provisions that would allow tax-
free distribution of IRA accounts for charitable purposes, and give
nonitemizers the same deduction that itemizers enjoy. It would also
allow the deduction for charitable gifts of long-term capital gain
property to be subject to an annual limit of 50 percent of adjusted
gross income instead of the current 30 percent limitation. It would
increase the carryover period for charitable deductions from five years
to ten years; and it would exclude a charitable deduction from the
three percent reduction rule. My bill would allow a taxpayer to deduct
charitable contributions up until April 15th, and finally, the Neighbor
to Neighbor Act would repeal the current two percent excise tax on
private foundations.
My bill would greatly simplify one of the most complex provisions in
the tax code. The tax code should reward the generosity of good-hearted
Americans, it should not penalize those who choose to give to those in
need.
IRA account owners would be permitted to make distributions from
their IRAs directly to charities, either outright, or in exchange for a
charitable gift annuity, a charitable reminder trust, or pooled income
fund in the Neighbor to Neighbor Act. According to the Employer Benefit
Research Institute, there are currently more than one trillion dollars
in IRA accounts and five trillion dollars in defined contribution
accounts, which can be rolled into IRA accounts.
I have numerous examples, totaling hundreds of millions of dollars,
from people who have wanted to donate their excess IRA assets to
charity, but were unable to because of the current tax penalties For
example, the ability to rollover an IRA to charity would mean literally
millions of dollars for Boston College. Syracuse University lost a 1.5
million-dollar gift because the donor could not rollover his IRA into a
charitable remainder trust.
A 71-year-old male donor with a 1.3 million IRA wanted to make a life
income gift to a major public university in Texas. He wanted to receive
annual income payments that would help ensure the care of his wife, who
is in the early stages of Alzheimer's. Given the tax consequences of
such a gift under current law, the donor has not been able to make the
charitable contribution.
The husband of a hospital volunteer at a medical center in Tennessee
would like to establish a charitable trust to benefit cancer research
in honor of his last wife. He wants to use retirement plan assets of
1.8 million to establish this cancer research fund, to provide himself
with annual payments for retirement income, and to reduce the tax
burden on his heirs, would be greater for IRA assets than other
appreciated securities. He has been advised against such a gift because
of tax disincentives under current law.
These are just a few examples of how the current law levies
significant taxes and presents serious disincentives to charitable
gifts of these assets. Under current, law, any IRA withdrawal is fully
taxable as ordinary income in the year in which it occurs. A donor who
withdraws IRA assets in order to make a charitable gift is subject to
tax on the entire amount withdrawn. Under very best of circumstances,
this amount might be offset by a charitable deduction, but even then
there are significant limitations.
My bill, which allows the tax-free distribution of individual IRA
accounts for charitable purposes, is good public policy. Although IRA
assets were originally intended as a supplement to retirement income,
withdrawal is now allowed, under certain circumstances, to assist in
financing a home or a college education. It is equally appropriate for
public policy to allow financially successful individuals, who have
reached a point where IRA and other tax-deferred retirement assets are
not needed for retirement, to use those assets, not for personal
benefit, but to support charities that better the lives of others.
The Neighbor to Neighbor Act would also allow donors who make
charitable contributions, but do not itemize their federal income tax
deductions, to be entitled to a ``direct'' charitable contribution
deduction. Since three out of four taxpayers do not itemize, the
charitable deduction is not available to most taxpayers. A report by
Price Waterhouse Coopers estimates that the deduction for nonitemizers
would translate into 11 million more donors, and could increase giving
by as much as 14.6 billion dollars in one year.
The deduction also does not provide an equal treatment for all
donors, and it encourages fundraising efforts to focus on a small group
of potential donors. By expanding the charitable contribution deduction
for nonitemizers, the playing field would be level for all donors, and
would lessen the role of government and the political process in
charitable giving.
People should not face disincentives that burden charitable giving.
My bill would allow the deduction for gifts of long-term capital gain
property to public charities to be subject to an annual limit of 50
percent of adjusted gross income instead of the current 30 percent
limitation. In addition, the carryover period for charitable deductions
that cannot be fully used in a given tax year, due to the applicable
percentage limitation, would be increased from the current five year to
10 years.
The current percentage limitations on the deductibility of charitable
contributions of long-term capital gain property to public charities,
coupled with the reduction in the tax rates applicable to realized,
long-term capital gains, are having a chilling effect on immediate
charitable giving, the former reduces the incentive to make relatively
large gifts of capital assets in the current year if the donor's
contribution base is relatively small, compared to the value of the
gift that could be made.
For example, just since last June, at Embry-Riddle Aeronautical
University, four individuals have indicated an interest in giving
amounts ranging from one to three million dollars. These individuals
have not yet given because of the tax disincentives of the 30 percent
rule; they can only deduct charitable contributions up to 30 percent of
their adjusted gross income.
By increasing the income tax charitable deduction reduction
percentage for contributions of long-term capital gain property to
public charities from 30 percent to 50 percent of the donor's
contribution base, gifts of highly-appreciated assets will be put on
par with gifts of cash, and the tax law will again boost private
philanthropy in America.
The Neighbor to Neighbor Act would also allow a taxpayer to deduct,
for the current year, charitable contributions made up to the time for
filing the taxpayer's federal income tax return for that tax year.
Currently, taxpayers may contribute to their IRAs up until April 15th
and still receive a deduction. Charitable donations should have the
same tax treatment.
Finally, this bill would repeal the excise tax imposed on the
investment income of private foundations. Private foundations are
section 501(c)(3) charities that fund the work of a full range of
charitable activities across the country. They are often founded by
individuals or families, and their income stream comes primarily, if
not entirely, from earnings on their investments.
Repeal of the excise tax would have the effect of increasing
charitable contributions by hundreds of millions of dollars every year.
This is because private foundations are required, annually, to pay out
five percent of their assets in charitable distributions, and since the
excise tax counts as a credit toward the distribution requirement,
repeal would require an increase in charitable distributions by an
equal amount.
The excise tax was originally enacted in 1969 as an ``audit fee,''
intended to offset the cost of IRS oversight of private foundations.
But today, the tax collects far more than the IRS needs to conduct
audits. In 1999, the excise tax produced 500 million dollars in
revenue. And this year, the budget of all exempt-organization
activities at the IRS is only 59 million dollars. Moreover, audits of
private foundations fell from 1,200 in 1990 to 191 in 1999. This
``audit fee'' is not being used for its intended purpose.
The wayward use of these revenues is a good reason to repeal the tax,
but not as important as the work we increasingly call on charities to
perform. With the focus of the President and the Congress on charitable
giving, I believe passage of the Neighbor to Neighbor Act would be one
of the most effective steps we could take.
[[Page S3998]]
If we hope that charities will join state and federal government
efforts to provide services for disadvantaged people and otherwise
address important societal needs, then Congress should enhance the tax
incentives that encourage voluntary philanthropy. Private foundations,
like public charities, are publicly supported to the extent that they
receive tax preferences. The provisions of the Neighbor to Neighbor Act
are reasonable, efficient steps that will help charities address our
common challenges; challenges we increasingly call on individuals and
the private sector to take.
In an article for The Journal of Gift Planning, President Bush
stated, ``I believe that the government's highest calling is often
simply to do no harm--to instead be an enabler, a catalyst that creates
a climate that allows America's nonprofits to flourish. A government
that serves those who are serving their brothers and sisters. A
government that rallies the armies of compassion to heal our nation's
ills, one heart and one act of kindness at a time.'' I believe that the
Neighbor to Neighbor Act does just that, and I urge my colleagues to
join me in support of this legislation.
______
By Mr. AKAKA (for himself and Mr. Jeffords):
S. 781. A bill to amend section 3702 of title 38, United States Code,
to extend the authority for housing loans for members of the Selected
Reserve; to the Committee on Veterans' Affairs.
Mr. AKAKA. Mr. President, I rise today to introduce legislation along
with Senator Jeffords that would extend the authority of the Department
of Veterans Affairs Home Loan Guaranty Program for members of the
Selected Reserve.
I am proud to be the author of the original legislation enacted in
1992 to extend eligibility for the VA Home Loan Guaranty Program to
National Guard and Reserve members. Tens of thousands of dedicated
reservists who served for at least six years, and continue to serve or
have received an honorable discharge, have been able to fulfill their
dream of home ownership through this program. The participation of
Guard and Reserve members not only benefits these service members, but
also stabilizes the financial viability of the program since this group
has had a lower default rate than most other program participants.
Furthermore, the program serves as an important recruiting incentive
for the National Guard and Reserve.
In the 106th Congress, Senator Jeffords and I introduced legislation
which resulted in the authorization for the program being extended
through September 30, 2007. While this was a step in the right
direction, using the benefit for a recruiting incentive will no longer
be possible since the authority expires in six years and reservists are
required to serve for at least six years before they qualify for VA-
guaranteed loans. In order to continue using this program as a
recruiting incentive for a few more years, I am introducing legislation
along with Senator Jeffords that would extend the authority for the
program through September 30, 2015.
The VA Home Loan Guaranty Program is an important component of a
benefits package which makes Guard and Reserve service more attractive
to qualified individuals. This is of particular importance during a
time when the civilian sector is competing for the same pool of limited
applicants, as well as when our military needs are becoming
increasingly technical, demanding only the most intelligent, motivated,
and competent individuals. An extension of the authority will assist
the National Guard and Reserve with their recruitment efforts.
I urge my colleagues to support this measure which would recognize
the vital contributions of National Guard and Reserve members to our
country, as well as ensure that VA-guaranteed housing loans can
continue to be used as a recruiting incentive.
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. 781
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF AUTHORITY FOR HOUSING LOANS FOR
MEMBERS OF THE SELECTED RESERVE.
Section 3702(a)(2)(E) of title 38, United States Code, is
amended by striking ``September 30, 2007'' and inserting
``September 30, 2015''.
______
By Mr. INOUYE:
S. 782. A bill to amend title III of the Americans with Disabilities
Act of 1990 to require, as a precondition to commencing a civil action
with respect to a place of public accommodation or a commercial
facility, that an opportunity be provided to correct alleged
violations, and for other purposes; to the Committee on Health,
Education, Labor, and Pensions.
Mr. INOUYE. Mr. President, I rise today to introduce the Americans
with Disabilities Act, ADA, Notification Act. This bill would amend the
ADA by including a notice requirement for violations of the ADA before
a court could assume jurisdiction over the dispute. This would allow
businesses the opportunity to bring properties into compliance without
having to face costly litigation.
The ADA currently does not contain a notice requirement, but allows
plaintiffs to sue owners of non-compliant businesses immediately. While
the public accommodations provisions in Title III of the ADA do not
allow plaintiffs to collect damages for violations of any of its access
standards, they do permit lawyers to collect attorneys fees. The lack
of a notice requirement has encouraged a number of lawyers to sue
businesses over infractions that are inexpensive to remedy, but for
which the businesses must pay costly plaintiffs' attorneys' fees and
expenses.
I believe this legislation is a reasonable means to ensure that
businesses will be given notice of violations of the ADA and the
opportunity to comply with the ADA before costly litigation is begun.
This would foster greater compliance with the ADA by allowing
businesses to expend their resources on making their properties more
accessible to the disabled, rather than on attorneys' fees.
Please be assured that I simply want to close a loophole in the ADA
that unscrupulous lawyers have exploited. I do not suggest or approve
of any changes to the ADA that would weaken its substantive
requirements for reasonable accommodation to persons with disabilities.
We must ensure that the progress begun more than a decade ago continues
as we work to make public accommodations more accessible to everyone.
______
By Mr. LEAHY (for himself, Mr. Kennedy, Mr. Feingold, Mrs.
Murray, Mr. Johnson, Mr. Schumer, and Mr. Harkin):
S. 783. A bill to enhance the rights of victims in the criminal
justice system, and for other purposes; to the Committee on the
Judiciary.
Mr. LEAHY. Mr. President, this past Sunday marked the beginning of
National Crime Victims' Rights Week. We set this week aside each year
to focus attention on the needs and rights of crime victims. I am
pleased to take this opportunity to introduce legislation with my good
friend from Massachusetts, Senator Kennedy, and our cosponsors,
Senators Feingold, Murray, Johnson, Schumer and Harkin. Our bill, the
Crime Victims Assistance Act of 2001, represents the next step in our
continuing efforts to afford dignity and recognition to victims of
crime.
My involvement with crime victims began more than three decades ago
when I served as State's Attorney in Chittenden County, VT, and
witnessed first-hand the devastation of crime. I have worked ever since
to ensure that the criminal justice system is one that respects the
rights and dignity of victims of crime, rather than one that presents
additional ordeals for those already victimized.
I am proud that Congress has been a significant part of the solution
to provide victims with greater rights and assistance. Over the past
two decades, Congress has passed several bills to this end. These bills
have included: the Victims Witness Protection Act of 1982; the Victims
of Crime Act of 1984; the Victims' Bill of Rights of 1990; the Victims'
Rights and Restitution Act of 1990; the Violence Against Women Act of
1994; the Mandatory Victims Restitution Act of 1996; the Victim Rights
Clarification Act of 1997; the Victims with Disabilities Awareness Act
of 1998;
[[Page S3999]]
and the Victims of Trafficking and Violence Protection Act of 2000.
The legislation that we introduce today, the Crime Victims Assistance
Act of 2001, builds upon this progress. It provides for comprehensive
reform of the Federal law to establish enhanced rights and protections
for victims of Federal crime. Among other things, our bill provides
crime victims with the right to consult with the prosecution prior to
detention hearings and the entry of plea agreements, and generally
requires the courts to give greater consideration to the views and
interests of the victim at all stages of the criminal justice process.
Responding to concerns raised by victims of the Oklahoma City bombing,
the bill provides standing for the prosecutor and the victim to assert
the right of the victim to attend and observe the trial.
Assuring that victims are provided their statutorily guaranteed
rights is a critical concern for all those involved in the
administration of justice. Our bill would establish an administrative
authority in the Department of Justice to receive and investigate
victims' claims of unlawful or inappropriate action on the part of
criminal justice and victims' service providers. Department of Justice
employees who fail to comply with the law pertaining to the treatment
of crime victims could face disciplinary sanctions, including
suspension or termination of employment.
In addition to these improvements to the Federal system, the bill
proposes several programs to help States provide better assistance for
victims of State crimes. These programs would improve compliance with
State victim's rights laws, promote the development of state-of-the-art
notification systems to keep victims informed of case developments and
important dates on a timely and efficient basis, and encourage further
experimentation with the community-based restorative justice model in
the juvenile court setting.
Finally, the Crime Victims Assistance Act would make several
significant amendments to the Victims of Crime Act, VOCA, and improve
the manner in which the Crime Victims Fund is managed and preserved.
Most significantly, the bill would eliminate the cap on VOCA spending,
which has prevented more than $700 million in Fund deposits from
reaching victims and supporting essential services.
Congress has capped spending from the Fund for the last two fiscal
years, and President Bush has proposed a third cap for fiscal year
2002. These limits on VOCA spending have created a growing sense of
confusion and unease by many of those concerned about the future of the
Fund.
We should not be imposing artificial caps on VOCA spending while
substantial unmet needs continue to exist. The Crime Victims Assistance
Act replaces the cap with a formulaic approach, which would ensure
stability and protection of Fund assets, while allowing more money to
go out to the States for victim compensation and assistance.
These are all matters that can be considered and enacted this year
with a simple majority of both Houses of Congress. They need not
overcome the delay and higher standards necessitated by proposing to
amend the Constitution. They need not wait the hammering out of
implementing legislation before making a difference in the lives of
crime victims.
The Judiciary Committee has held several hearings over the last five
years on a proposed constitutional amendment regarding crime victims.
Unfortunately, the Committee has devoted not a minute to consideration
of legislative initiatives like the Crime Victims Assistance Act, which
Senator Kennedy and I first introduced in the 105th Congress, to assist
crime victims and better protect their rights. Like many other
deserving initiatives, it has taken a back seat to the constitutional
amendment debate that continues.
I regret that we have not done more for victims this year, or during
the last few years. I have on several occasions noted my concern that
we not dissipate the progress we could be making by focusing
exclusively on efforts to amend the Constitution. Regretfully, I must
note that the pace of victims legislation has slowed noticeably and
many opportunities for progress have been squandered. One notable
exception was the Victims of Trafficking and Violence Protection Act of
2000, which included a Leahy-Feinstein amendment dealing with support
for victims of international terrorism. Senator Feinstein cares deeply
about the rights of victims, and I am pleased that we could work
together on some practical, pragmatic improvements to our federal crime
victims' laws.
I look forward to continuing to work with the Administration, victims
groups, prosecutors, judges and other interested parties on how we can
most effectively enhance the rights of victims of crime. Congress and
State legislatures have become more sensitive to crime victims rights
over the past 20 years and we have a golden opportunity to make
additional, significant progress this year to provide the greater voice
and rights that crime victims deserve.
I would like to acknowledge several individuals and organizations
that have been extremely helpful with regards to the legislation that
we are introducing today: Dan Eddy, National Association of Crime
Victim Compensation Boards; Steve Derene, Wisconsin Department of
Justice Office of Crime Victims Services; Susan Howley, National Center
for Victims of Crime; and John Stein, National Organization for Victim
Assistance. I would also like to thank Kathryn M. Turman, the Acting
Director for the Office for Victims of Crime, and Heather Cartwright
and Carolyn Hightower of that office, for their work on this project.
While we have greatly improved our crime victims assistance programs
and made advances in recognizing crime victims rights, we still have
more to do. That is why it is my hope that Democrats and Republicans,
supporters and opponents of a constitutional amendment on this issue,
will join in advancing this important legislation through Congress. We
can make a difference in the lives of crime victims right now, and I
hope Congress will make it a top priority and pass the Crime Victims
Assistance Act before the end of the year.
I ask unanimous consent that the text of the bill and the section-by-
section analysis be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 783
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Crime
Victims Assistance Act of 2001''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--VICTIM RIGHTS IN THE FEDERAL SYSTEM
Sec. 101. Right to consult concerning detention.
Sec. 102. Right to a speedy trial.
Sec. 103. Right to consult concerning plea.
Sec. 104. Enhanced participatory rights at trial.
Sec. 105. Enhanced participatory rights at sentencing.
Sec. 106. Right to notice concerning sentence adjustment.
Sec. 107. Right to notice concerning discharge from psychiatric
facility
Sec. 108. Right to notice concerning executive clemency.
Sec. 109. Procedures to promote compliance.
TITLE II--VICTIM ASSISTANCE INITIATIVES
Sec. 201. Pilot programs to enforce compliance with State crime
victim's rights laws.
Sec. 202. Increased resources to develop state-of-the-art systems for
notifying crime victims of important dates and
developments.
Sec. 203. Restorative justice grants.
Sec. 204. Funding for Federal victim assistance personnel.
TITLE III--VICTIMS OF CRIME ACT AMENDMENTS
Sec. 301. Crime victims fund.
Sec. 302. Crime victim compensation.
Sec. 303. Crime victim assistance.
Sec. 304. Victims of terrorism.
TITLE I--VICTIM RIGHTS IN THE FEDERAL SYSTEM
SEC. 101. RIGHT TO CONSULT CONCERNING DETENTION.
(a) Right To Consult Concerning Detention.--Section 503(c)
of the Victims' Rights and Restitution Act of 1990 (42 U.S.C.
10607(c)) is amended by striking paragraph (2) and inserting
the following:
``(2) A responsible official shall--
``(A) arrange for a victim to receive reasonable protection
from a suspected offender and persons acting in concert with
or at the behest of the suspected offender; and
``(B) consult with a victim prior to a detention hearing to
obtain information that can
[[Page S4000]]
be presented to the court on the issue of any threat the
suspected offender may pose to the safety of the victim.''.
(b) Court Consideration of the Views of Victims.--Chapter
207 of title 18, United States Code, is amended--
(1) in section 3142--
(A) in subsection (g)--
(i) in paragraph (3), by striking ``and'' at the end;
(ii) by redesignating paragraph (4) as paragraph (5); and
(iii) by inserting after paragraph (3) the following:
``(4) the views of the victim; and''; and
(B) by adding at the end the following:
``(k) Views of the Victim.--During a hearing under
subsection (f), the judicial officer shall inquire of the
attorney for the Government if the victim has been consulted
on the issue of detention and the views of such victim, if
any.''.
(2) in section 3156(a)--
(A) in paragraph (4), by striking ``and'' at the end;
(B) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(6) the term ``victim'' includes all persons defined as
victims in section 503(e)(2) of the Victims' Rights and
Restitution Act of 1990 (42 U.S.C. 10607(e)(2)).''.
SEC. 102. RIGHT TO A SPEEDY TRIAL.
Section 3161(h)(8)(B) of title 18, United States Code, is
amended by adding at the end the following:
``(v) The interests of the victim (as defined in section
10607(e)(2) of title 42, United States Code) in the prompt
and appropriate disposition of the case, free from
unreasonable delay.''.
SEC. 103. RIGHT TO CONSULT CONCERNING PLEA.
(a) Right To Consult Concerning Plea.--Section 503(c) of
the Victims' Rights and Restitution Act of 1990 (42 U.S.C.
10607(c)) is amended--
(1) by redesignating paragraphs (4) through (8) as
paragraphs (5) through (9), respectively; and
(2) by inserting after paragraph (3) the following:
``(4) A responsible official shall make reasonable efforts
to notify a victim of, and consider the views of a victim
about, any proposed or contemplated plea agreement. In
determining what is reasonable, the responsible official
should consider factors relevant to the wisdom and
practicality of giving notice and considering views in the
context of the particular case, including--
``(A) the impact on public safety and risks to personal
safety;
``(B) the number of victims;
``(C) the need for confidentiality, including whether the
proposed plea involves confidential information or
conditions;
``(D) whether time is of the essence in negotiating or
entering a proposed plea; and
``(E) whether the victim is a possible witness in the case
and the effect that relaying any information may have upon
the right of the defendant to a fair trial.''.
(b) Court Consideration of the Views of Victims.--Rule 11
of the Federal Rules of Criminal Procedure is amended--
(1) by redesignating subdivisions (g) and (h) as
subdivisions (h) and (i), respectively; and
(2) by inserting after subdivision (f) the following:
``(g) Views of the Victim.--Notwithstanding the acceptance
of a plea of guilty, the court should not enter a judgment
upon such plea without making inquiry of the attorney for the
Government if the victim (as defined in section 503(e)(2) of
the Victims' Rights and Restitution Act of 1990) has been
consulted on the issue of the plea and the views of such
victim, if any.''.
(c) Effective Date.--
(1) In general.--The amendments made by subsection (b)
shall become effective as provided in paragraph (3).
(2) Action by judicial conference.--
(A) Recommendations.--Not later than 180 days after the
date of enactment of this Act, the Judicial Conference of the
United States shall submit to Congress a report containing
recommendations for amending the Federal Rules of Criminal
Procedure to provide enhanced opportunities for victims to be
heard on the issue of whether or not the court should accept
a plea of guilty or nolo contendere.
(B) Inapplicability of other law.--Chapter 131 of title 28,
United States Code, does not apply to any recommendation made
by the Judicial Conference of the United States under this
paragraph.
(3) Congressional action.--Except as otherwise provided by
law, if the Judicial Conference of the United States--
(A) submits a report in accordance with paragraph (2)
containing recommendations described in that paragraph, and
those recommendations are the same as the amendments made by
subsection (b), then the amendments made by subsection (b)
shall become effective 30 days after the date on which the
recommendations are submitted to Congress under paragraph
(2);
(B) submits a report in accordance with paragraph (2)
containing recommendations described in that paragraph, and
those recommendations are different in any respect from the
amendments made by subsection (b), the recommendations made
pursuant to paragraph (2) shall become effective 180 days
after the date on which the recommendations are submitted to
Congress under paragraph (2), unless an Act of Congress is
passed overturning the recommendations; and
(C) fails to comply with paragraph (2), the amendments made
by subsection (b) shall become effective 360 days after the
date of enactment of this Act.
(4) Application.--Any amendment made pursuant to this
section (including any amendment made pursuant to the
recommendations of the Judicial Conference of the United
States under paragraph (2)) shall apply in any proceeding
commenced on or after the effective date of the amendment.
SEC. 104. ENHANCED PARTICIPATORY RIGHTS AT TRIAL.
(a) Amendments to Victim Rights Clarification Act.--Section
3510 of title 18, United States Code, is amended--
(1) by redesignating subsection (c) as subsection (e); and
(2) by inserting after subsection (b) the following:
``(c) Application to Televised Proceedings.--This section
applies to any victim viewing proceedings pursuant to section
235 of the Antiterrorism and Effective Death Penalty Act of
1996 (42 U.S.C. 10608), or any rule issued thereunder.
``(d) Standing.--
``(1) In general.--At the request of any victim of an
offense, the attorney for the Government may assert the right
of the victim under this section to attend and observe the
trial.
``(2) Victim standing.--If the attorney for the Government
declines to assert the right of a victim under this section,
then the victim has standing to assert such right.
``(3) Appellate review.--An adverse ruling on a motion or
request by an attorney for the Government or a victim under
this subsection may be appealed or petitioned under the rules
governing appellate actions, provided that no appeal or
petition shall constitute grounds for delaying a criminal
proceeding.''.
(b) Amendment to Victims' Rights and Restitution Act of
1990.-- Section 502(b) of the Victims' Rights and Restitution
Act of 1990 (42 U.S.C. 10606(b)) is amended--
(1) by striking paragraph (4) and inserting the following:
``(4) The right to be present at all public court
proceedings related to the offense, unless the court
determines that testimony by the victim at trial would be
materially affected if the victim heard the testimony of
other witnesses.''; and
(2) in paragraph (5), by striking ``attorney'' and
inserting ``the attorney''.
SEC. 105. ENHANCED PARTICIPATORY RIGHTS AT SENTENCING.
(a) Views of the Victim.--Section 3553(a) of title 18,
United States Code, is amended--
(1) in paragraph (6), by striking ``and'' at the end;
(2) by redesignating paragraph (7) as paragraph (8); and
(3) by inserting after paragraph (6) the following:
``(7) the impact of the crime upon any victim of the
offense as reflected in any victim impact statement and the
views of any victim of the offense concerning punishment, if
such statement or views are presented to the court; and''.
(b) Enhanced Right To Be Heard Concerning Sentence.--Rule
32 of the Federal Rules of Criminal Procedure is amended--
(1) in subdivision (c)(3)(E), by striking ``if the sentence
is to be imposed for a crime of violence or sexual abuse,'';
and
(2) by amending subdivision (f) to read as follows:
``(f) Definition. For purposes of this rule, `victim' means
any individual against whom an offense has been committed for
which a sentence is to be imposed, but the right of
allocution under subdivision (c)(3)(E) may be exercised
instead by--
``(1) a parent or legal guardian if the victim is below the
age of eighteen years or incompetent; or
``(2) one or more family members or relatives designated by
the court if the victim is deceased or incapacitated;
if such person or persons are present at the sentencing
hearing, regardless of whether the victim is present.''.
(c) Effective Date.--
(1) In general.--The amendments made by subsection (b)
shall become effective as provided in paragraph (3).
(2) Action by judicial conference.--
(A) Recommendations.--Not later than 180 days after the
date of enactment of this Act, the Judicial Conference of the
United States shall submit to Congress a report containing
recommendations for amending the Federal Rules of Criminal
Procedure to provide enhanced opportunities for victims to
participate during the presentencing and sentencing phase of
the criminal process.
(B) Inapplicability of other law.--Chapter 131 of title 28,
United States Code, does not apply to any recommendation made
by the Judicial Conference of the United States under this
paragraph.
(3) Congressional action.--Except as otherwise provided by
law, if the Judicial Conference of the United States--
(A) submits a report in accordance with paragraph (2)
containing recommendations described in that paragraph, and
those recommendations are the same as the amendments made by
subsection (b), then the amendments made by subsection (b)
shall become effective 30 days after the date on which the
recommendations are submitted to Congress under paragraph
(2);
(B) submits a report in accordance with paragraph (2)
containing recommendations
[[Page S4001]]
described in that paragraph, and those recommendations are
different in any respect from the amendments made by
subsection (b), the recommendations made pursuant to
paragraph (2) shall become effective 180 days after the date
on which the recommendations are submitted to Congress under
paragraph (2), unless an Act of Congress is passed
overturning the recommendations; and
(C) fails to comply with paragraph (2), the amendments made
by subsection (b) shall become effective 360 days after the
date of enactment of this Act.
(4) Application.--Any amendment made pursuant to this
section (including any amendment made pursuant to the
recommendations of the Judicial Conference of the United
States under paragraph (2)) shall apply in any proceeding
commenced on or after the effective date of the amendment.
SEC. 106. RIGHT TO NOTICE CONCERNING SENTENCE ADJUSTMENT.
Paragraph (6) of section 503(c) of the Victims' Rights and
Restitution Act of 1990, as redesignated by section 103 of
this Act, is amended by striking subparagraph (A) and
inserting:
``(A) the scheduling of a parole hearing or a hearing on
modification of probation or supervised release for the
offender;''.
SEC. 107. RIGHT TO NOTICE CONCERNING DISCHARGE FROM
PSYCHIATRIC FACILITY.
Paragraph (6) of section 503(c) of the Victims' Rights and
Restitution Act of 1990, as redesignated by section 103 of
this Act, is amended by striking subparagraph (B) and
inserting:
``(B) the escape, work release, furlough, discharge or
conditional discharge, or any other form of release from
custody of the offender, including an offender who was found
not guilty by reason of insanity;''.
SEC. 108. RIGHT TO NOTICE CONCERNING EXECUTIVE CLEMENCY.
(a) Notice.--Paragraph (6) of section 503(c) of the
Victims' Rights and Restitution Act of 1990, as redesignated
by section 103 of this Act, is amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by inserting after subparagraph (B) the following:
``(C) the grant of executive clemency, including any
pardon, reprieve, commutation of sentence, or remission of
fine, to the offender; and''.
(b) Reporting Requirement.--The Attorney General shall
submit biannually to the Committees on the Judiciary of the
House of Representatives and the Senate a report on executive
clemency matters or cases delegated for review or
investigation to the Attorney General by the President,
including for each year--
(1) the number of petitions so delegated;
(2) the number of reports submitted to the President;
(3) the number of petitions for executive clemency granted
and the number denied;
(4) the name of each person whose petition for executive
clemency was granted or denied and the offenses of conviction
of that person for which executive clemency was granted or
denied; and
(5) with respect to any person granted executive clemency,
the date that any victim of an offense that was the subject
of that grant of executive clemency was notified, pursuant to
Department of Justice regulations, of a petition for
executive clemency, and whether such victim submitted a
statement concerning the petition.
SEC. 109. PROCEDURES TO PROMOTE COMPLIANCE.
(a) Regulations.--Not later than 1 year after the date of
enactment of this Act, the Attorney General of the United
States shall promulgate regulations to enforce the rights of
victims of crime described in section 502 of the Victims'
Rights and Restitution Act of 1990 (42 U.S.C. 10606) and to
ensure compliance by responsible officials with the
obligations described in section 503 of that Act (42 U.S.C.
10607).
(b) Contents.--The regulations promulgated under subsection
(a) shall--
(1) establish an administrative authority within the
Department of Justice to receive and investigate complaints
relating to the provision or violation of the rights of a
crime victim;
(2) require a course of training for employees and offices
of the Department of Justice that fail to comply with
provisions of Federal law pertaining to the treatment of
victims of crime, and otherwise assist such employees and
offices in responding more effectively to the needs of
victims;
(3) contain disciplinary sanctions, including suspension or
termination from employment, for employees of the Department
of Justice who willfully or wantonly fail to comply with
provisions of Federal law pertaining to the treatment of
victims of crime; and
(4) provide that the Attorney General, or the designee of
the Attorney General, shall be the final arbiter of the
complaint, and that there shall be no judicial review of the
final decision of the Attorney General by a complainant.
TITLE II--VICTIM ASSISTANCE INITIATIVES
SEC. 201. PILOT PROGRAMS TO ENFORCE COMPLIANCE WITH STATE
CRIME VICTIM'S RIGHTS LAWS.
(a) Definitions.--In this section:
(1) Compliance authority.--The term ``compliance
authority'' means one of the compliance authorities
established and operated under a program under subsection (b)
to enforce the rights of victims of crime.
(2) Director.--The term ``Director'' means the Director of
the Office for Victims of Crime.
(3) Office.--The term ``Office'' means the Office for
Victims of Crime.
(b) Pilot Programs.--
(1) In general.--Not later than 12 months after the date of
enactment of this Act, the Attorney General, acting through
the Director, shall establish and carry out a program to
provide for pilot programs in 5 States to establish and
operate compliance authorities to enforce the rights of
victims of crime.
(2) Agreements.--
(A) In general.--The Attorney General, acting through the
Director, shall enter into an agreement with a State to
conduct a pilot program referred to in paragraph (1), which
agreement shall provide for a grant to assist the State in
carrying out the pilot program.
(B) Contents of agreement.--The agreement referred to in
subparagraph (A) shall specify that--
(i) the compliance authority shall be established and
operated in accordance with this section; and
(ii) except with respect to meeting applicable requirements
of this section concerning carrying out the duties of a
compliance authority under this section (including the
applicable reporting duties under subsection (f) and the
terms of the agreement), a compliance authority shall operate
independently of the Office.
(C) No authority over daily operations.--The Office shall
have no supervisory or decisionmaking authority over the day-
to-day operations of a compliance authority.
(c) Objectives.--
(1) Mission.--The mission of a compliance authority
established and operated under a pilot program under this
section shall be to promote compliance and effective
enforcement of State laws regarding the rights of victims of
crime.
(2) Duties.--A compliance authority established and
operated under a pilot program under this section shall--
(A) receive and investigate complaints relating to the
provision or violation of the rights of a crime victim; and
(B) issue findings following such investigations.
(3) Other duties.--A compliance authority established and
operated under a pilot program under this section may--
(A) pursue legal actions to define or enforce the rights of
victims;
(B) review procedures established by public agencies and
private organizations that provide services to victims, and
evaluate the delivery of services to victims by such agencies
and organizations;
(C) coordinate and cooperate with other public agencies and
private organizations concerned with the implementation,
monitoring, and enforcement of the rights of victims and
enter into cooperative agreements with such agencies and
organizations for the furtherance of the rights of victims;
(D) ensure a centralized location for victim services
information;
(E) recommend changes in State policies concerning victims,
including changes in the system for providing victim
services;
(F) provide public education, legislative advocacy, and
development of proposals for systemic reform; and
(G) advertise to advise the public of its services,
purposes, and procedures.
(d) Eligibility.--To be eligible to receive a grant under
this section, a State shall submit an application to the
Director which includes assurances that--
(1) the State has provided legal rights to victims of crime
at the adult and juvenile levels;
(2) a compliance authority that receives funds under this
section will include a role for--
(A) representatives of criminal justice agencies, crime
victim service organizations, and the educational community;
(B) a medical professional whose work includes work in a
hospital emergency room; and
(C) a therapist whose work includes treatment of crime
victims; and
(3) Federal funds received under this section will be used
to supplement, and not to supplant, non-Federal funds that
would otherwise be available to enforce the rights of victims
of crime.
(e) Preference.--In awarding grants under this section, the
Attorney General shall give preference to a State that
provides legal standing to prosecutors and victims of crime
to assert the rights of victims of crime.
(f) Oversight.--
(1) Technical assistance.--The Director may provide
technical assistance and training to a State that receives a
grant under this section to achieve the purposes of this
section.
(2) Annual report.--Each State that receives a grant under
this section shall submit to the Director, for each year in
which funds from a grant received under this section are
expended, a report that contains--
(A) a summary of the activities carried out under the grant
and an assessment of the effectiveness of such activities in
promoting compliance and effective implementation of the laws
of that State regarding the rights of victims of crime;
(B) a strategic plan for the year following the year
covered under subparagraph (A); and
[[Page S4002]]
(C) such other information as the Director may require.
(g) Review of Program Effectiveness.--
(1) In general.--The Director of the National Institute for
Justice shall conduct an evaluation of the pilot programs
carried out under this section to determine the effectiveness
of the compliance authorities that are the subject of the
pilot programs in carrying out the mission and duties
described in subsection (c).
(2) Report.--Not later than 5 years after the date of
enactment of this Act, the Director of the National Institute
of Justice shall submit to the Committee on the Judiciary of
the House of Representatives and the Committee on the
Judiciary of the Senate a written report on the results of
the evaluation required by paragraph (1).
(h) Grant Period.--A grant under this section shall be made
for a period not longer than 4 years, but may be renewed for
a period not to exceed 2 years on such terms as the Director
may require.
(i) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out this section, to remain available until expended,
$8,000,000 for fiscal year 2002 and such sums as may be
necessary for fiscal years 2003, 2004, and 2005.
(2) Evaluations.--Up to 5 percent of the amount authorized
to be appropriated under paragraph (1) in any fiscal year may
be used for administrative expenses incurred in conducting
the evaluations and preparing the report required by
subsection (g).
SEC. 202. INCREASED RESOURCES TO DEVELOP STATE-OF-THE-ART
SYSTEMS FOR NOTIFYING CRIME VICTIMS OF
IMPORTANT DATES AND DEVELOPMENTS.
The Victims of Crime Act of 1984 is amended by inserting
after section 1404C the following:
``SEC. 1404D. VICTIM NOTIFICATION GRANTS.
``(a) In General.--The Director may make grants as provided
in section 1404(c)(1)(A) to State, tribal, and local
prosecutors' offices, law enforcement agencies, courts,
jails, and correctional institutions, and to qualified
private entities, to develop and implement state-of-the-art
systems for notifying victims of crime of important dates and
developments relating to the criminal proceedings at issue on
a timely and efficient basis.
``(b) Integration of Systems.--Systems developed and
implemented under this section may be integrated with
existing case management systems operated by the recipient of
the grant.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section, in
addition to funds made available by section 1402(d)(4)(C)--
``(1) $10,000,000 for fiscal year 2002;
``(2) $5,000,000 for fiscal year 2003; and
``(3) $5,000,000 for fiscal year 2004.
``(d) False Claims Act.--Notwithstanding any other
provision of law, amounts collected pursuant to sections 3729
through 3731 of title 31, United States Code (commonly known
as the `False Claims Act'), may be used for grants under this
section.''.
SEC. 203. RESTORATIVE JUSTICE GRANTS.
The Victims of Crime Act of 1984 is amended by inserting
after section 1404D, as added by section 202 of this Act, the
following:
``SEC. 1404E. RESTORATIVE JUSTICE GRANTS.
``(a) In General.--The Director may make grants as provided
in section 1404(c)(1)(A) of this title to States, units of
local government, tribal governments, and qualified private
entities for the development and implementation of community-
based restorative justice programs in juvenile justice
systems.
``(b) Community-Based Restorative Justice Program.--In this
section, the term `community-based restorative justice
program' means a program based upon principles of restorative
justice and a concern for maintaining offenders safely in the
community.
``(c) Mission.--The mission of a program developed and
implemented under a grant under this section shall be to--
``(1) protect the community through processes in which
individual victims, offenders, and the community are all
active participants;
``(2) ensure accountability of the offenders to their
victims and community; and
``(3) equip offenders with the skills needed to live
responsibly and productively.
``(d) Voluntary Programs.--A program funded under this
section shall be fully voluntary for both victims and
offenders.
``(e) Report.--The Office for Victims of Crime shall
conduct a study and report to Congress not later than 3 years
after the date of enactment of this Act on the effectiveness
of programs that receive grants under this section.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section, in
addition to funds made available by section 1402(d)(4)(C) of
this title, $4,000,000 for each of fiscal years 2002, 2003,
and 2004.
``(g) False Claims Act.--Notwithstanding any other
provision of law, amounts collected pursuant to sections 3729
through 3731 of title 31, United States Code (commonly known
as the `False Claims Act'), may be used for grants under this
section.''.
SEC. 204. FUNDING FOR FEDERAL VICTIM ASSISTANCE PERSONNEL.
(a) In General.--There are authorized to be appropriated
such sums as may be necessary to enable the Attorney General,
through the Director of the Office for Victims of Crime, to
retain 400 full-time or full-time equivalent employees to
serve as victim witness coordinators and victim witness
advocates in Federal law enforcement agencies.
(b) Victims Assistance.--Employees retained pursuant to
this section shall provide assistance to victims of criminal
offenses investigated or prosecuted by a Federal law
enforcement agency and otherwise improve services for the
benefit of crime victims in the Federal system.
(c) Allocation of Employees.--Full-time and full-time
equivalent employees retained pursuant to this section shall
be assigned by the Director of the Office for Victims of
Crime, as needed, in Federal law enforcement agencies,
including--
(1) 170 to the United States Attorneys Offices; and
(2) 120 to the Federal Bureau of Investigation in field
offices in Indian country (as defined in section 1151 of
title 18, United States Code) and other field offices that
handle investigations involving large numbers of victims, and
in the Headquarters Divisions.
TITLE III--VICTIMS OF CRIME ACT AMENDMENTS
SEC. 301. CRIME VICTIMS FUND.
(a) Deposit of Gifts in the Fund.--Section 1402(b) of the
Victims of Crime Act of 1984 (42 U.S.C. 10601(b)) is
amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(5) any gifts, bequests, or donations to the Fund from
private entities or individuals.''.
(b) Formula for Fund Distributions.--Section 1402(c) of the
Victims of Crime Act of 1984 (42 U.S.C. 10601(c)) is
amended--
(1) in the second sentence--
(A) by striking ``made available for obligation by
Congress'' and inserting ``obligated''; and
(B) by inserting ``in reserve'' after ``shall remain''; and
(2) by adding at the end the following: ``Subject to the
availability of money in the Fund, the Director shall make
available pursuant to this Act, not less than 90 percent nor
more than 110 percent of the total amount of funds made
available for obligation in the previous fiscal year.''.
(c) Funding for Victim Assistance Personnel.--Section
1402(d) of the Victims of Crime Act of 1984 (42 U.S.C.
10601(d)) is repealed.
(d) Allocation of Funds for Costs and Grants.--Section
1402(d)(4) of the Victims of Crime Act of 1984 (42 U.S.C.
10601(d)(4)) is amended--
(1) in subparagraph (A), by striking ``48.5'' and inserting
``47.5'';
(2) in subparagraph (B), by striking ``48.5'' and inserting
``47.5''; and
(3) in subparagraph (C), by striking ``3'' and inserting
``5''.
(e) Antiterrorism Emergency Reserve.--Section 1402(d)(5) of
the Victims of Crime Act of 1984 (42 U.S.C. 10601(d)(5)) is
amended to read as follows:
``(4)(A) Notwithstanding subsection (c), the Director may
set aside up to $50,000,000 from the amounts remaining in the
Fund as an antiterrorism emergency reserve fund. The Director
may replenish any amounts expended in subsequent fiscal years
by setting aside up to 5 percent of the amounts remaining in
the Fund in any fiscal year.
``(B) The antiterrorism emergency reserve referred to in
subparagraph (A) may be used for supplemental grants under
section 1404B (42 U.S.C. 10603b) and to provide compensation
to victims of international terrorism under section 1404C (42
U.S.C. 10603c).''.
SEC. 302. CRIME VICTIM COMPENSATION.
(a) Allocation of Funds for Compensation and Assistance.--
Section 1403(a) of the Victims of Crime Act of 1984 (42
U.S.C. 10602(a)) is amended--
(1) in each of paragraphs (1) and (2), by striking ``40''
and inserting ``60''; and
(2) in paragraph (3), by striking ``5'' and inserting
``10''.
(b) Relationship of Crime Victim Compensation to Means-
Tested Federal Benefit Programs.--Section 1403 of the Victims
of Crime Act of 1984 (42 U.S.C. 10602) is amended by striking
subsection (c) and inserting the following:
``(c) Exclusion From Income, Resources, and Assets for
Purposes of Means Tests.--Notwithstanding any other law, for
the purpose of any maximum allowed income, resource, or asset
eligibility requirement in any Federal, State, or local
government program using Federal funds that provides medical
or other assistance (or payment or reimbursement of the cost
of such assistance), any amount of crime victim compensation
that the applicant receives through a crime victim
compensation program under this section shall not be included
in the income, resources, or assets of the applicant, nor
shall that amount reduce the amount of the assistance
available to the applicant from Federal, State, or local
government programs using Federal funds, unless the total
amount of assistance that the applicant receives from all
such programs is sufficient to fully compensate the applicant
for losses suffered as a result of the crime.''.
(c) Conforming Amendment.--Section 1403(d)(4) of the
Victims of Crime Act of 1984 (42 U.S.C. 10602(d)(4)) is
amended by inserting ``the United States Virgin Islands,''
after ``the Commonwealth of Puerto Rico,''.
SEC. 303. CRIME VICTIM ASSISTANCE.
(a) Assistance for Victims in the District of Columbia,
Puerto Rico, and Other Territories and Possessions.--Section
[[Page S4003]]
1404(a) of the Victims of Crime Act of 1984 (42 U.S.C.
10603(a)) is amended by adding at the end the following:
``(6) An agency of the Federal Government performing local
law enforcement functions in and on behalf of the District of
Columbia, the Commonwealth of Puerto Rico, the United States
Virgin Islands, or any other territory or possession of the
United States may qualify as an eligible crime victim
assistance program for the purpose of grants under this
subsection, or for the purpose of grants under subsection
(c)(1).''.
(b) Prohibition on Discrimination Against Certain
Victims.--Section 1404(b)(1) of the Victims of Crime Act of
1984 (42 U.S.C. 10603(b)(1)) is amended--
(1) in subparagraph (D), by striking ``and'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(F) does not discriminate against victims because they
oppose the death penalty or disagree with the way the State
is prosecuting the criminal case.''.
(c) Administrative Costs for Crime Victim Assistance.--
Section 1404(b)(3) of the Victims of Crime Act of 1984 (42
U.S.C. 10603(b)(3)) is amended by striking ``5'' and
inserting ``10''.
(d) Grants for Program Evaluation and Compliance Efforts.--
Section 1404(c)(1)(A) of the Victims of Crime Act of 1984 (42
U.S.C. 10603(c)(1)(A)) is amended by inserting ``, program
evaluation, compliance efforts,'' after ``demonstration
projects''.
(e) Fellowships and Clinical Internships.--Section
1404(c)(3) of the Victims of Crime Act of 1984 (42 U.S.C.
10603(c)(3)) is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) use funds made available to the Director under this
subsection--
``(i) for fellowships and clinical internships; and
``(ii) to carry out programs of training and special
workshops for the presentation and dissemination of
information resulting from demonstrations, surveys, and
special projects.''.
SEC. 304. VICTIMS OF TERRORISM.
(a) Assistance to Victims of International Terrorism.--
Section 1404B(a)(1) of the Victims of Crime Act of 1984 (42
U.S.C. 10603b(a)(1)) is amended by striking ``who are not
persons eligible for compensation under title VIII of the
Omnibus Diplomatic Security and Antiterrorism Act of 1986''.
(b) Compensation to Victims of International Terrorism.--
Section 1404C(b) of the Victims of Crime of 1984 (42 U.S.C.
10603c(b)) is amended by adding at the end the following:
``The amount of compensation awarded to a victim under this
subsection shall be reduced by any amount that the victim
received in connection with the same act of international
terrorism under title VIII of the Omnibus Diplomatic Security
and Antiterrorism Act of 1986.''.
____
Crime Victims Assistance Act of 2001--Section-by-Section Summary
OVERVIEW
The Crime Victims Assistance Act of 2001 represents an
important step in Congress's continuing efforts to provide
assistance and afford respect to victims of crime. The bill
would accomplish three major goals. First, it would provide
enhanced rights and protections for victims of federal
crimes. Second, it would assist victims of State crimes
through grant programs designed to promote compliance with
State victim's rights laws. Third, it would make several
significant amendments to the Victims of Crime Act and
improve the manner in which the Crime Victims Fund is managed
and preserved.
Title I--Victim Rights in the Federal System
Sec. 101. Right to consult concerning detention. Requires
the government to consult with victim prior to a detention
hearing to obtain information that can be presented to the
court on the issue of any threat the suspected offender may
pose to the victim. Requires the court to make inquiry during
a detention hearing concerning the views of the victim, and
to consider such views in determining whether the suspected
offender should be detained.
Sec. 102. Right to a speedy trial. Requires the court to
consider the interests of the victim in the prompt and
appropriate disposition of the case, free from unreasonable
delay.
Sec. 103. Right to consult concerning plea. Requires the
government to make reasonable efforts to notify the victim
of, and consider the victim's views about, any proposed or
contemplated plea agreement. Requires the court, prior to
entering judgment on a plea, to make inquiry concerning the
views of the victim on the issue of the plea.
Sec. 104. Enhanced participatory rights at trial. Provides
standing for the prosecutor and the victim to assert the
right of the victim to attend and observe the trial. Extends
the Victim Rights Clarification Act to apply to televised
proceedings. Amends the Victims' Rights and Restitution Act
of 1990 to strengthen the right of crime victims to be
present at court proceedings, including trials.
Sec. 105. Enhanced participatory rights at sentencing.
Requires the probation officer to include as part of the
presentence report any victim impact statement submitted by a
victim. Extends to all victims the right to make a statement
or present information in relation to the sentence. Requires
the court to consider the victim's views concerning
punishment, if such views are presented to the court, before
imposing sentence.
Sec. 106. Right to notice concerning sentence adjustment.
Requires the government to provide the victim the earliest
possible notice of the scheduling of a hearing on
modification of probation or supervised release for the
offender.
Sec. 107. Right to notice concerning discharge from
psychiatric facility. Requires the government to provide the
victim the earliest possible notice of the discharge or
conditional discharge from a psychiatric facility of an
offender who was found not guilty by reason of insanity.
Sec. 108. Right to notice concerning executive clemency.
Requires the government to provide the victim the earliest
possible notice of the grant of executive clemency to the
offender. Requires the Attorney General to report to Congress
concerning executive clemency matters delegated for review or
investigation to the Attorney General.
Sec. 109. Procedures to promote compliance. Establishes an
administrative system for enforcing the rights of crime
victims in the federal system.
TITLE II--VICTIM ASSISTANCE INITIATIVES
Sec. 201. Pilot programs to enforce compliance with
victim's rights laws. Authorizes the establishment of pilot
programs in five States to establish and operate compliance
authorities to promote compliance and effective enforcement
of State laws regarding the rights of victims of crime.
Compliance authorities would receive and investigate
complaints relating to the provision or violation of a crime
victim's rights, and issue findings following such
investigations. Authorizes appropriations to make grants for
these pilot programs.
Sec. 202. Increased resources to develop state-of-the-art
systems for notifying crime victims of important dates and
developments. Authorizes appropriations for grants to develop
and implement crime victim notification systems.
Sec. 203. Restorative justice grants. Authorizes
appropriations for grants to develop and implement community-
based restorative justice programs in juvenile court
settings.
Sec. 204. Funding for federal victim assistance personnel.
Authorizes appropriations to retain 400 full-time or full-
time equivalent employees to serve as victim witness
coordinators and victim witness advocates in Federal law
enforcement agencies. These positions are currently funded
with money from the Crime Victims Fund.
TITLE III--VICTIMS OF CRIME ACT AMENDMENTS
Sec. 301. Crime Victims Fund. Replaces the annual cap on
the Fund with a formula that ensures stability in the amounts
distributed to the States, while preserving the amounts
remaining in the Fund for use in future years. Discontinues
the practice of using Fund money to pay for victim assistance
positions in certain federal agencies; these positions would
now be funded through direct appropriations under section
204. Increases the portion of the Fund that shall be
available to OVC for discretionary victim assistance grants
and for assistance to victims of federal crime. Permits OVC
to retain a maximum of $50 million in an antiterrorism
emergency reserve that can be replenished with up to 5
percent of the amounts retained in the Fund after the annual
Fund distribution.
Sec. 302. Crime victim compensation. Increases from 40 to
60 percent the minimum threshold for the annual grant to
State crime victim compensation programs. Clarifies that a
payment of compensation to a victim shall not reduce the
amount of assistance available to that victim under other
government programs.
Sec. 303. Crime victim assistance. Authorizes States to
give VOCA funds to U.S. Attorney's Offices in jurisdictions
where the U.S. Attorney is the local prosecutor. Prohibits
State crime victim assistance programs that receive VOCA
grants from discriminating against victims because they
oppose the death penalty or disagree with the way the State
is prosecuting the criminal case. Authorizes OVC to make
grants to eligible crime victim assistance programs for
program evaluation and compliance efforts. Allows OVC to use
funds for fellowships and clinical internships and to carry
out training programs.
Sec. 304. Victims of Terrorism. Technical amendment to
section 2003 of the Trafficking Victims Protection Act of
2000 (PL 106-386), which inadvertently reversed the existing
exclusion under VOCA of individuals eligible for other
federal compensation under the Omnibus Diplomatic Security
and Antiterrorism Act of 1986 (ODSA). The exclusion of
individuals eligible for compensation under ODSA should have
been applied to section 1404C of VOCA, which covers direct
compensation to victims of international terrorism, and not
to section 1404B, which covers assistance to victims of
terrorism.
______
By Mr. MURKOWSKI:
S. 784. A bill to amend the Internal Revenue Code of 1986 to increase
the limitation on capital losses any individual may deduct against
ordinary income, and to allow individuals a 3-year capital loss
carryback and unlimited
[[Page S4004]]
carryovers; to the Committee on Finance.
Mr. MURKOWSKI. Mr. President, I am today introducing legislation that
would soften the blow that many investors have felt as the stock market
has declined. My bill would raise the capital loss limit that can be
applied against ordinary income. Currently, the limit is $3,000. Under
my proposal, the limit would rise to $20,000. Moreover, my legislation
allows individual taxpayers to carryback capital losses three years to
offset prior capital gains.
This bill reflects the reality of what has happened to many millions
of investors. In the past year, more than $4.5 trillion of wealth has
been wiped out as our economy has slowed and the markets have declined.
For many investors, when they file their taxes next year, they are
going to find that if they have no offsetting gains they are only going
to be allowed to write off $3,000 of their loss. Of course, they can
carry forward that loss. But for an investor who has net capital losses
of $20,000 this year he or she will not be able to completely write off
that investment loss until 2007, assuming no future capital gains. With
$40,000 of losses, it would take until 2014 to write off those losses.
The capital loss/ordinary income limit has been in place since 1976.
It seems to me that with 25 years of inflation, that $3,000 limit is
far too low. Moreover, I have always believed that if we want to
encourage investors to take financial risks investing in new frontier
technologies, we should cushion the financial blow when the venture
does not succeed. The best way to do that is to allow them to write off
a greater portion of their loss immediately.
The bill also allows individuals the opportunity to carry back losses
in the same fashion that is allowed to corporations. If their capital
losses exceed their capital gains they would be able to carry those
losses back three years to offset capital gains incurred in prior
years. While I recognize that this may create some complexity for
taxpayers since it would require the filing of amended returns, I
believe it is an appropriate and fair way to deal with capital losses.
If a corporation can take advantage of this benefit, it seems only fair
to give that same benefit to individuals.
I would certainly like to see the capital gains rate lowered. But as
one Wall Street executive recently was quoted: ``The last time I
looked, you had to have gains for this to make any difference.'' I
certainly think the proposal I have offered would certainly make a
difference to many millions of taxpayers who have suffered grievous
losses in the market this year.
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. 784
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TREATMENT OF CAPITAL LOSSES OF TAXPAYERS OTHER
THAN CORPORATIONS.
(a) Increase in Limitation on Losses Allowable Against
Ordinary Income.--Section 1211(b)(1) of the Internal Revenue
Code of 1986 (relating to limitation on capital losses of
taxpayers other than corporations) is amended--
(1) by striking ``$3,000'' and inserting ``$20,000'', and
(2) by striking ``$1,500'' and inserting ``$10,000''.
(b) Carryback and Carryovers of Capital Losses.--Section
1212(b)(1) of the Internal Revenue Code of 1986 (relating to
capital loss carrybacks and carryovers of taxpayers other
than corporations) is amended to read as follows:
``(1) Carrybacks and carryovers.--
``(A) In general.--If a taxpayer other than a corporation
has a net capital loss for any taxable year (the `loss
year')--
``(i) the excess of the net short-term capital loss over
the net long-term capital gain for the loss year shall be a
capital loss carryback to each of the 3 taxable years
preceding the loss year and a capital loss carryover to each
taxable year succeeding the loss year, and shall be treated
as a short-term capital loss in each such taxable year, and
``(ii) the excess of the net long-term capital loss over
the net short-term capital gain for the loss year shall be a
capital loss carryback to each of the 3 taxable years
preceding the loss year and a capital loss carryover to each
taxable year succeeding the loss year, and shall be treated
as a long-term capital loss in each of such taxable years.
``(B) Amount carried to each taxable year.--The entire
amount of the loss which may be carried to another taxable
year under subparagraph (A) shall be carried to the earliest
of the taxable years to which the loss may be carried. The
portion of such loss which may be carried to any other
taxable year shall be the excess (if any) of such loss over
the portion of such loss which, after application of
subparagraph (C), was allowed as a carryback or carryover to
any prior taxable year.
``(C) Amount which may be used.--An amount shall be allowed
as a carryback or carryover from a loss year to another
taxable year only to the extent--
``(i) such amount does not exceed the excess (if any) of--
``(I) the sum of the losses from the sale or exchange of
capital assets in such other taxable year plus losses carried
under this paragraph to such other taxable year from taxable
years prior to such loss year, over
``(II) gains from such sales or exchanges in such other
taxable year, and
``(ii) the allowance of such carryback or carryover does
not increase or produce a net operating loss (as defined in
section 172(c)) for such other taxable year.''
(c) Conforming Amendments.--
(1) Section 1212(b)(2)(A) of the Internal Revenue Code of
1986 is amended by striking ``subparagraph (A) or (B) of
paragraph (1)'' and inserting ``clause (i) or (ii) of
paragraph (1)(A)''.
(2) Section 1212 of such Code is amended by striking
subsection (c).
(d) Effective Date.--The amendments made by this section
shall apply to capital losses arising in taxable years
beginning after December 31, 2000.
______
By Mr. GREGG:
S. 787. A bill to prohibit the importation of diamonds from countries
that have not become signatories to an international agreement
establishing a certification system for exports and imports of rough
diamonds or that have not unilaterally implemented a certification
system meeting the standards set forth herein; to the Committee on
Finance
Mr. GREGG. Mr. President, the purpose of the Conflict Diamonds Act of
2001 is to eliminate the illegal diamond trade that has fueled violent
conflicts in the African nations of Sierra Leone, Liberia, Congo,
Angola, Ivory Coast, and Burkina Faso. The sale of illicit diamonds has
allowed criminal gangs like the Revolutionary United Front in Sierra
Leone to buy arms and supplies in an effort to expand their influence.
In the process, they have inflicted unspeakable pain, including torture
and amputation, on the innocent people they encounter.
The Conflict Diamonds Act of 2001 bans the importation into the
United States of diamonds from countries that fail to observe an
effective diamond control system. Under this legislation, no diamond
that has ever been in the possession of the RUF or any other rebel
group will be allowed to enter the United States. This includes
diamonds that pass through another country for cutting or setting. The
Conflict Diamonds Act of 2001 authorizes the President of the United
States to ban the importation of diamonds and diamond jewelry from
countries if he believes that shipments from those countries violate
the legislation's intent. Those who knowingly violate the import ban
would be subject to criminal and civil penalties under existing U.S.
Customs law. The Customs Service would be authorized to seize illicit
shipments. The import ban would take effect six months after enactment,
regardless of the status of negotiations for an international
agreement.
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. 787
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 ``Conflict Diamonds Act of
2001.
TITLE I--PROHIBITION ON IMPORTATION OF CONFLICT DIAMONDS
SEC. 101. FINDINGS.
The Congress finds that--
(1) The use of funds from illegitimate diamond trade to
support conflicts in Africa has had devastating effects on
the peoples of the regions involved in those conflicts;
(2) U.N. Security Council Resolution 1173 of June 12, 1998
requires the United States and all other U.N. members to take
the necessary measures to prohibit the direct or indirect
importation from Angola to their territory of all diamonds
that are not controlled through the Certificate of Origin
regime of the Government of Unity and National Reconciliation
(GURN);
[[Page S4005]]
(3) U.N. Security Council Resolution 1306 of July 5, 2000
requires the United States and all other U.N. members to take
the necessary measures to prohibit the direct or indirect
importation of all rough diamonds from Sierra Leone into
their territory that are not controlled by the Government of
Sierra Leone through its Certificate of Origin regime;
(4) U.N. Security Council Resolution 1344 of March 8, 2001
requires the United States and all other U.N. members to take
the necessary measures to prevent the direct or indirect
import of all rough diamonds from Liberia, whether or not
such diamonds originated in Liberia;
(5) Effective compliance with U.N. Security Council
Resolutions 1173, 1306, and 1344 is necessary to eliminate
trade in conflict diamonds;
(6) Although the President of the United States has issued
Executive Orders to implement Resolution 1173 and Resolution
1306, additional measures are needed to ensure compliance
with, and prevent circumvention of, those resolutions;
(7) Further measures are needed to prevent rough diamonds
originating in other rebel-controlled conflict areas from
entering the global stream of commerce in which legitimate
diamonds are sold;
(8) The resolution of the United Nations General Assembly
approved on December 1, 2000 provides important guidance on
devising effective and pragmatic measures to address the
problem of conflict diamonds; and,
(9) Since legitimate diamond trade is of great economic
importance to developing countries in Africa, no law should
be enacted, nor regulation or other measure implemented, that
would impede legitimate diamond trade or diminish confidence
in the integrity of the legitimate diamond industry.
SEC. 102. DEFINITIONS.
(a) The term ``diamond'' means a natural mineral consisting
of essentially pure carbon crystallized in the isometric
system with a hardness of 10 on the Mohs scale, a specific
gravity of approximately 3.52, and a refractive index of
2.42.
(b) The term ``rough diamond'' means a diamond that is
unworked or simply sawn, cleaved or bruted, as described in
Harmonized Tariff Schedule of the United States subheading
7102.31.0000.
(c) The term ``conflict diamond'' means a diamond that has
at any time been in the possession of any person belonging to
or associated with armed insurgents, rebel forces, or any
other movement using violence against civilians or
internationally recognized governments.
SEC. 103. RESTRICTIONS ON THE IMPORTATION OF DIAMONDS.
(a) No person may enter into the customs territory of the
United States or aid or abet an attempt to enter any diamond,
including any diamond set in jewelry, that has been mined in,
or mined and set in, and exported directly from, the Republic
of Sierra Leone, the Republic of Angola, or the Republic of
Liberia except for a diamond or a diamond set in jewelry:
(1) the country of origin of which has been certified as
the Republic of Sierra Leone by the internationally
recognized government of that country, in accordance with
United Nations Security Council Resolution 1306 of July 5,
2000; or
(2) the country of origin of which has been certified as
the Republic of Angola by the internationally recognized
government of that country, in accordance with United Nations
Security Council Resolution 1173 of June 12, 1998.
(b) No person may enter into the customs territory of the
United States or aid or abet an attempt to enter any diamond
directly from a country that: is subject to a United Nations
Security Council resolution similar to those identified in
subsection (a) or that is not a signatory to an international
agreement that establishes a certification system for exports
and imports of rough diamonds, that has not unilaterally
implemented such a system, or that is not a ``cooperating
country'' as defined in subsection (c) of section 105 of this
Act.
SEC. 104. PROHIBITION OF OTHER IMPORTS TO PREVENT
CIRCUMVENTION OF U.N. RESOLUTIONS.
The President of the United States is authorized to
prohibit the importation of diamonds or diamond jewelry
exported from any country except for rough diamonds
whose country of origin has been certified as either the
Republic of Angola or the Republic of Sierra Leone under
the Certificate of Origin regimes described in section 103
(a) (1) or (2), if there are reasonable grounds to believe
that such prohibition is necessary to carry out U.N.
Security Council Resolution 1173, 1306, or 1344, or any
other Resolution banning the exportation or importation of
conflict diamonds.
SEC. 105. IMPLEMENTING MEASURES.
(a) The Secretary of the Treasury of the United States is
authorized to make such rules and regulations as may be
necessary to carry out the provisions of this Act. The public
will be notified and given an opportunity of at least 30 days
to comment on all proposed rules and regulations before they
take effect.
(b) These regulations will provide that an importer is
entitled to rely on the country of origin marking that is
required under 19 U.S.C. Sec. 1304. However, nothing in this
Act shall be construed to override an importer's duty to
exercise reasonable care.
(c) No later than six months after the date of enactment of
this Act, the Secretary of the Treasury will issue a list of
countries that are signatories to the international agreement
described in Title II, have unilaterally implemented a
certification system containing the elements described in
subsection (b) of section 203, or are found to be
``cooperating'' countries as defined in this subsection. The
Secretary of the Treasury will revise and update this list as
necessary. For purposes of this subsection, the Secretary of
the Treasury will find that a country is ``cooperating'' if
it is acting in good faith to establish and enforce a
unilateral certification system meeting the standards
described in subsection (b) of section 203 or taking action
to ensure that it is not facilitating trade in conflict
diamonds. The Secretary of the Treasury, in consultation with
appropriate agencies, shall develop and publish criteria that
will be used to evaluate whether a country will be deemed a
cooperating country. These criteria will be subject to public
notice and comment before adoption in final form.
(d) The Secretary of the Treasury may extend cooperating
country status for more than six months after the initial
designation, but shall provide to Congress an explanation of
the reasons for why such an extension is necessary.
(e) The President of the United States shall ensure that
implementation of and compliance with Title I of this Act is
monitored by appropriate agencies or by an independent body.
SEC. 106. PENALTIES FOR NON-COMPLIANCE.
(a) Civil and criminal penalties.--Any person who enters or
introduces into the commerce of the United States, attempts
to enter or introduce, or aids or abets an attempt to enter
or introduce, merchandise in violation of Title I of this Act
or the implementing regulations for Title I will be subject
to civil and criminal penalties in effect under the customs
laws of the United States, as set forth in Title 19 of the
United States Code. The same administrative procedures and
defenses that apply under Title 19 of the United States Code
will apply to penalties that are sought to be assessed under
this subsection.
(b) Seizure.--If the Customs Service has reasonable cause
to believe that a person has violated the provisions of
subsection (a) of this section and that seizure is essential
to prevent the introduction of merchandise into the customs
territory of the United States whose importation is
prohibited by Title I of this Act, then such merchandise may
be seized. Within a reasonable time after any such seizure is
made, the Customs Service will issue to the person concerned
a written statement containing the reasons for the seizure. A
person may seek relief from seizure under the procedures and
standards prescribed in 19 U.S.C. Sec. 1618 and the Customs
Service regulations that implement that provision.
(c) Court of International Trade Proceedings.--
(1) Jurisdiction.--Section 1582 of Title 28, United States
Code, is amended by amending paragraph (1) to read as
follows:
``(1) to recover a civil penalty under section 592, 593A,
641(b)(6), 641(d)(2)(A), 704(i)(2), or 734(i)(2) of the
Tariff Act of 1930.
(2) Standard of Review.--Notwithstanding any other
provision of law, in any proceeding commenced by the United
States in the Court of International Trade for the recovery
of any monetary penalty under this section, all issues,
including the amount of any penalty, shall be tried de novo.
(d) Proceeds from Fines and Seized Goods.--The proceeds
derived from penalties and seizures under Title I of this Act
will, in addition to amounts otherwise available for such
purposes, be available only for programs to assist the
victims of conflicts involving illicitly traded diamonds.
SEC. 107. REPORT TO CONGRESS.
The President of the United States will report to Congress
no later than 180 days after enactment of this Act and
annually thereafter on the implementing measures taken to
carry out the provisions of this Title and their
effectiveness in stopping imports of conflict diamonds into
the United States.
TITLE II--NEGOTIATION OF AN INTERNATIONAL AGREEMENT TO ELIMINATE TRADE
IN CONFLICT DIAMONDS
SEC. 201. FINDINGS.
The Congress finds that--
(1) The most effective and desirable means of eliminating
international trade in conflict diamonds is through
international cooperative efforts involving governments, the
private sector, civil society, and appropriate international
organizations;
(2) The initiatives of the world diamond industry, as
reflected in the Resolution of the World Federation of
Diamond Bourses and the International Diamond Manufacturers
Association in Antwerp on July 19, 2000, as well as the
efforts of the South African-led Working Group on African
Diamonds and the World Diamond Council in developing
proposals for a global certification system for rough
diamonds, are important efforts at international cooperation
and may provide effective mechanisms that could be
incorporated in an international agreement to eliminate trade
in conflict diamonds;
(3) Eliminating imports of rough diamonds from countries
where conflict diamonds are mined, transshipped, or
subsequently shipped into countries where cutting and
polishing occur is the most effective way to eliminate trade
in conflict diamonds;
[[Page S4006]]
SEC. 202. SENSE OF CONGRESS--NEGOTIATION OF INTERNATIONAL
AGREEMENT.
It is the sense of the Congress that the President should
engage in negotiations on and seek to conclude an
international agreement to eliminate trade in conflict
diamonds as soon as possible. The system implementing this
agreement shall be transparent and subject to independent
verification and monitoring. Participants in such an
agreement should include all countries that either export or
import diamonds or diamond jewelry.
SEC. 203. OVERALL NEGOTIATING OBJECTIVE OF THE UNITED STATES
AND ESSENTIAL ELEMENTS OF AN INTERNATIONAL
AGREEMENT.
(a) The overall negotiating objective of the United States
is to establish an effective global certification system
covering the major exporting and importing countries of rough
diamonds that will eliminate trade in conflict diamonds.
(b) The elements of an effective global certification
system for rough diamonds that the United States should seek
in its negotiations are as follows:
(1) Rough diamonds, when exported from the country in which
they were extracted, must be sealed in a secure, transparent
container or bag by appropriate government officials of that
country;
(2) The sealed container described in paragraph (1) must
include a fully visible government document certifying the
country of extraction and recording a unique export
registration number and the total carat weight of the rough
diamonds enclosed;
(3) A database containing information described in
paragraph (2) must be established for rough diamond exports
in each exporting country, including countries engaged in the
re-export of rough diamonds;
(4) No country may allow importation of rough diamonds
unless they are sealed in a secure, transparent container
that includes a fully visible document that states a unique
export registration number for such container and the total
carat weight of the rough diamonds enclosed. The legitimacy
of such document must be verified by electronic or other
reliable means with the database maintained in the country of
export.
(5) Provisions shall be made for physical inspection of
sealed containers of rough diamonds by appropriate
authorities.
(6) Diamonds may be freely imported and exported from a
country that implements and enforces a rough diamond
certification system that contains the elements specified in
paragraphs (1) through (5), or a system that is its
functional equivalent, provided that the country of
extraction need only be specified when rough diamonds are
exported from such country and need not be specified when
rough diamonds are exported from a country that implements
and enforces such a rough diamond certification system.
SEC. 204. CONSULTATIONS WITH CONGRESS.
The President of the United States shall consult
periodically with Congress in developing and negotiating
proposals for an international agreement as described in
sections 202 and 203.
SEC. 205. REPORT TO CONGRESS.
The President of the United States will provide a written
report to Congress no later than 180 days after enactment of
this Act and annually thereafter on the progress made towards
concluding an international agreement and the progress of the
signatories to that agreement in implementing it, including
which countries are not implementing it and the effects of
their actions on trade in conflict diamonds. Each report
shall also describe any technological advances that permit
determining a diamond's origin, marking a diamond, and
tracking it.
SEC. 206. IMPLEMENTING LEGISLATION.
The President of the United States will submit to Congress
a draft bill implementing the provisions of any agreement
that is negotiated no later than 60 calendar days after
entering into that agreement.
SEC. 207. EFFECTIVE DATE.
Title I will apply with respect to articles entered, or
withdrawn from warehouse for consumption, six months after
the date of enactment of this Act. Title II will take effect
on the date of enactment of this Act.
TITLE III--OTHER PROVISIONS
SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
Such sums as may be necessary are hereby authorized to be
appropriated to implement the provisions of this Act,
including such sums as are necessary to assist the
governments of Sierra Leone and Angola to establish and
maintain a diamond certification system.
SEC. 302. SEVERABILITY.
If any provision of this Act or the application of such
provision to any person or circumstance is held invalid, it
is the intent of Congress that the remainder of this Act and
application of such provision to other persons or
circumstances will not be affected thereby.
SEC. 303. GAO REPORT.
The General Accounting Office shall report to Congress on
the effectiveness of this Act no later than three years after
the date of enactment of this Act.
______
By Mr. HUTCHINSON (for himself and Mr. Warner):
S. 789. A bill to amend title 37, United States Code, to establish an
education savings plan to encourage reenlistments and extensions of
service by members of the Armed Forces in critical specialties, and for
other purposes; to the Committee on Armed Services.
Mr. HUTCHINSON. Mr. President, today I am introducing a bill that
will provide military personnel the ability to provide for the
education of their spouses and children in return for their commitment
to continue to serve in the armed forces.
The purpose of this bill is to promote retention of members of the
armed forces in critical specialties by establishing a bonus savings
plan that will provide significant resources for meeting the expenses
encountered by service members in providing for the education of
members of their families.
I met with the Senior Enlisted Advisors of the four armed services
and the Coast Guard. These Senior Enlisted Advisors are the top
enlisted person in their respective services. Their job is to advise
the Service Chief on matters pertaining to enlisted personnel. These
experienced senior leaders are among the most significant resources
available to the generals and admirals, and those of us here in
Congress, as we seek answers to questions on recruiting, retention, and
quality of life. These enlisted leaders know first-hand and fully
understand the life, the demands on and concerns of enlisted personnel
in their services.
In my meeting with the Senior Enlisted Advisors, I sought their
insight on what factors enlisted service members consider when making
that critical decision as to whether to continue their active service
or leave the military. I found myself talking to the very people who
have faced the stress of these decisions; who have sat with their
spouses and families and discussed whether to stay in the military or
leave and seek a career outside the military. They were very frank and
candid in their discussions.
One thing I learned is that, like many of us, enlisted service
members share the goal of giving their children better opportunities
than they had. To a person, the Senior Enlisted Advisors said that
being able to provide educational opportunities for their families is
an important goal and would be a powerful retention tool.
My bill will provide enlisted service members in critical
specialties, who agree to serve a six-year term, resources that can be
applied to cover the expenses of higher education for their families.
Let me explain how this will work.
Service members, officers or enlisted, in critical specialties, who
reenlist or extend their service commitment for six years will receive
United States Savings Bonds that can be redeemed to cover educational
expenses. When these Savings Bonds are redeemed to cover educational
costs, the income, under the current tax code, is tax exempt. My bill
does not modify the tax code. My proposal will take advantage of
current tax law as it pertains to United States Savings Bonds used for
educational purposes.
Military personnel who have less than three years of service when
they reenlist or extend their commitment will receive Savings Bonds
with a face value of $5,000. For those service members who have between
three and nine years of service when they reenlist or extend their
commitment will receive Savings Bonds with a face value of $15,000.
Those members with more than nine years of service who reenlist or
extend their commitment will receive Savings Bonds with a face value of
$30,000.
A Service Member who reenlists at the two-year point and receives
$5,000 in Savings Bonds subsequently reenlists at the end of his six-
year commitment--now with eight years of service--would receive an
additional $10,000 in Savings Bonds, for a total of $15,000. This
service member could reenlist again at the conclusion of the second
six-year term,--now in his 14th year--and would receive an additional
$15,000 for a career total of $30,000 in United States Savings Bonds
that can be used for educational purposes. All tax free.
My bill will provide military personnel the capability to provide for
the education of their spouses and children while investing in America.
I am introducing this bill today to enhance the benefits President
Bush announced at Fort Stewart, Georgia, on Monday. The President
announced that his budget will include $5.7 billion in additional
benefits for military personnel; $1.4 billion to increase military
[[Page S4007]]
pay and allowances; $3.9 billion for military health care; and $0.4
billion for improvements to military housing. These increases are much
needed and the announcement was enthusiastically received by the men
and women at Fort Stewart, Georgia who know the sacrifices they are
required to make in service of their country. My bill enhances
President Bush's initiatives by providing educational opportunities
that are unavailable today to the children of military personnel. I
will hold hearings later this year in the Armed Services Committee to
further develop each of these initiatives.
My bill furthers the educational opportunities for military families,
increases military readiness by retaining the highly-trained and
experienced military personnel we need to continue to be the preeminent
military force in the world, and accomplished these lofty goals by
investing in America. I urge my colleagues to examine my bill and join
Senator Warner and I as cosponsors of this important initiative.
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. 789
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. PURPOSE.
It is the purpose of this Act to promote the retention of
members of the Armed Forces in critical specialties by
establishing a bonus savings plan that provides significant
resources for meeting the expenses encountered by the members
in providing for the education of the members of their
families and other contingencies.
SEC. 2. EDUCATION SAVINGS PLAN FOR REENLISTMENTS AND
EXTENSIONS OF SERVICE IN CRITICAL SPECIALTIES.
(a) Establishment of Savings Plan.--(1) Chapter 5 of title
37, United States Code, is amended by adding at the end the
following new section:
``Sec. 323. Incentive bonus: savings plan for education
expenses and other contingencies
``(a) Benefit and Eligibility.--The Secretary concerned
shall purchase United States savings bonds under this section
for a member of the armed forces who is eligible as follows:
``(1) A member who, before completing three years of
service on active duty, enters into a commitment to perform
qualifying service.
``(2) A member who, after completing three years of service
on active duty but not more than nine years of service on
active duty, enters into a commitment to perform qualifying
service.
``(3) A member who, after completing nine years of service
on active duty, enters into a commitment to perform
qualifying service.
``(b) Qualifying Service.--For the purposes of this
section, qualifying service is service on active duty in a
specialty designated by the Secretary concerned as critical
to meet requirements (whether such specialty is designated as
critical to meet wartime or peacetime requirements) for a
period that--
``(1) is not less than six years; and
``(2) does not include any part of a period for which the
member is obligated to serve on active duty under an
enlistment or other agreement for which a benefit has
previously been paid under this section.
``(c) Forms of Commitment to Additional Service.--For the
purposes of this section, a commitment means--
``(1) in the case of an enlisted member, a reenlistment;
and
``(2) in the case of a commissioned officer, an agreement
entered into with the Secretary concerned.
``(d) Amounts of Bonds.--The total of the face amounts of
the United States savings bonds purchased for a member under
this section for a commitment shall be as follows:
``(1) In the case of a purchase for a member under
paragraph (1) of subsection (a), $5,000.
``(2) In the case of a purchase for a member under
paragraph (2) of subsection (a), the amount equal to the
excess of $15,000 over the total of the face amounts of any
United States savings bonds previously purchased for the
member under this section.
``(3) In the case of a purchase for a member under
paragraph (3) of subsection (a), the amount equal to the
excess of $30,000 over the total of the face amounts of any
United States savings bonds previously purchased for the
member under this section.
``(e) Total Amount of Benefit.--The total amount of the
benefit payable for a member when United States savings bonds
are purchased for the member under this section by reason of
a commitment by that member shall be the sum of--
``(1) the purchase price of the United States savings
bonds; and
``(2) the amounts that would be deducted and withheld for
the payment of individual income taxes if the total amount
computed under this subsection for that commitment were paid
to the member as a bonus.
``(f) Amount Withheld for Taxes.--The total amount payable
for a member under subsection (e)(2) for a commitment by that
member shall be withheld, credited, and otherwise treated in
the same manner as amounts deducted and withheld from the
basic pay of the member.
``(g) Repayment for Failure To Complete Obligated
Service.--(1) If a person fails to complete the qualifying
service for which the person is obligated under a commitment
for which a benefit has been paid under this section, the
person shall refund to the United States the amount that
bears the same ratio to the total amount paid for the person
(as computed under subsection (e)) for that particular
commitment as the uncompleted part of the period of
qualifying service bears to the total period of the
qualifying service for which obligated.
``(2) Subject to paragraph (3), an obligation to reimburse
the United States imposed under paragraph (1) is for all
purposes a debt owed to the United States.
``(3) The Secretary concerned may waive, in whole or in
part, a refund required under paragraph (1) if the Secretary
concerned determines that recovery would be against equity
and good conscience or would be contrary to the best
interests of the United States.
``(4) A discharge in bankruptcy under title 11 that is
entered less than five years after the termination of an
enlistment or other agreement under this section does not
discharge the person signing such reenlistment or other
agreement from a debt arising under the reenlistment or
agreement, respectively, or this subsection.
``(h) Relationship to Other Special Pays.--The benefit
provided under this section is in addition to any other bonus
or incentive or special pay that is paid or payable to a
member under any other provision of this chapter for any
portion of the same qualifying service.
``(i) Regulations.--This section shall be administered
under regulations prescribed by the Secretary of Defense for
the armed forces under his jurisdiction and by the Secretary
of Transportation for the Coast Guard when the Coast Guard is
not operating as a service in the Navy.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:
``323. Incentive bonus: savings plan for education and other
contingencies.''.
(b) Effective Date.--Section 323 of title 37, United States
Code (as added by subsection (a)), shall take effect on
October 1, 2001, and shall apply with respect to
reenlistments and other agreements for qualifying service
(described in that section) that are entered into on or after
that date.
______
By Mr. THURMOND:
S. 791. A bill to amend the Federal rules of Criminal Procedure; to
the Committee on the Judiciary.
Mr. THURMOND. Mr. President, I rise today to introduce the Video
Teleconferencing Improvements Act. This bill will expand the use of
video teleconferencing in criminal court matters, and promote a safer
and more efficient federal court system.
The federal courtroom, just like all society, is benefiting from
constant advances in technology today. Video teleconferencing is one
example of this movement. It allows proceedings to operate more
efficiently and at lower costs, while maintaining many of the benefits
of communicating in person.
The use of video teleconferencing is becoming increasingly common in
federal district and appellate courts for various proceedings, such as
prisoner civil rights complaints and certain appellate matters. The
state courts are also benefiting from video technology in many ways,
including for pretrial criminal proceedings. However, in federal court,
the use of this technology in criminal matters is almost nonexistent
because the federal rules apparently require the defendant's physical
presence in court.
This legislation would amend the Federal Rules of Criminal Procedure
to allow the judge to hold pretrial proceedings, including the
defendant's arraignment and initial appearance, through video
teleconferencing. It would also allow for the sentencing to occur in
this manner in special, limited circumstances.
Today, some districts have extremely high volumes of criminal cases
that they must process. This is especially true in the Border States,
where the number of immigrants who are caught crossing the Mexican
Border or committing crimes in the United States has skyrocketed and
continues to rise. This creates a great burden and expense on the
Marshals Service, which must transport the prisoners, often for very
long distances from the holding facility to a far away courthouse. This
type of transportation in creases the possibility for escape and can
create a security risk for law enforcement, court personnel, and the
public.
[[Page S4008]]
Pretrial proceedings are often very short and routine. If they can be
conducted through video, the inmates can stay at the secure facility,
greatly decreasing risk and costs. If Marshals could spend less time on
other duties, such as apprehending dangerous fugitives from justice.
Moreover, this process would help the courts efficiently manage their
increasing caseloads.
Similarly, I believe that video teleconferencing could be very
important for sentencing defendants in certain limited circumstances.
This is especially true when there is a safety or security risk in
transporting the prisoner to the courthouse.
For example, in an ongoing case in South Carolina, a dangerous repeat
offender was sentenced to a long prison term at the maximum security
federal prison in Florence, Colorado. However, the court of appeals
required that he be sentenced again. The Federal Bureau of Prisons
considered him a danger to transport. He had a long history of
psychiatric problems and violent behavior, including repeatedly
assaulting prison guards and other inmates. In this case, he had even
threatened the sentencing judge and the Assistant U.S. Attorney. Rather
than transporting the prisoner back to South Carolina, the judge
resentenced him by video teleconferencing. However, the case is now on
appeal, and there is legal precedent not allowing this practice. In my
view, there is simply no reason why a judge should be prohibited from
sentencing by video in these circumstances.
This legislation is not an attempt to eliminate criminal defendants
from appearing in person before the judge. Defendants would still be in
court for all phases of the trial, which this bill would not effect. In
fact, criminal trials must be conducted in person because the accused
has the constitutional right to confront the witnesses against him.
Further, even with these changes, the judge would maintain the
authority to hold any pretrial or sentencing proceeding in person if he
wished. This bill would simply give him the authority to conduct
certain routine matters, other than the trial, through video
teleconferencing.
The Rules Committee of the Judicial Conference has been considering
this video technology for some time, and recently proposed some of the
specific changes that are included in this legislation. I hope they
will provide judges discretion to conduct pretrial proceedings by video
teleconference, and go even further than the formal proposals that they
have considered to date.
My legislation will help eliminate legal impediments to the
reasonable use of video teleconferencing and help courts take advantage
of new technology. These reforms are needed today.
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. 791
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 ``Video Teleconferencing
Improvements Act of 2001''.
SEC. 2. AUTHORIZATION OF VIDEO TELECONFERENCING FOR THE
INITIAL APPEARANCE.
Rule 5 of the Federal Rules of Criminal Procedure is
amended by adding at the end the following:
``(d) Video Teleconferencing.--Video teleconferencing may
be used to conduct an appearance under this rule.''.
SEC. 3. AUTHORIZATION OF VIDEO TELECONFERENCING FOR THE
ARRAIGNMENT.
Rule 10 of the Federal Rules of Criminal Procedure is
amended--
(1) by striking ``Arraignment'' and inserting ``(a) In
General.--Arraignment''; and
(2) by adding at the end the following:
``(b) Video Teleconferencing.--Video teleconferencing may
be used to arraign a defendant.''.
SEC. 4. AUTHORIZATION OF VIDEO TELECONFERENCING FOR CERTAIN
PROCEEDINGS.
Rule 43 of the Federal Rules of Criminal Procedure is
amended--
(1) in subsection (a), by striking ``The'' and inserting
``Except as otherwise provided in this rule, Rule 5, or Rule
10, the'';
(2) in subsection (c)--
(A) in paragraph (3), by striking ``or'' at the end;
(B) in paragraph (4), by striking the period at the end and
inserting ``; or''; and
(C) by adding at the end the following:
``(5) when--
``(A) the proceeding is the sentencing hearing; and
``(B)(i) the defendant, in writing, waives the right to be
present in court; or
``(ii) the court finds, for good cause shown in exceptional
circumstances and upon appropriate safeguards, that
communication with a defendant (who is not physically present
before the court) by video teleconferencing is an adequate
substitute for the physical presence of the defendant.''.
SEC. 5. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall apply
to a criminal complaint filed after the date of enactment of
this Act.
______
By Mr. LIEBERMAN (for himself, Mr. Kohl, Mrs. Clinton, and Mr.
Byrd):
S. 792. A bill to prohibit the targeted marketing to minors of adult-
rated media as an unfair or deceptive practice, and for other purposes;
to the Committee on Commerce, Science, and Transportation.
Mr. LIEBERMAN. Mr. President, I rise today to join with Senators
Kohl, Clinton, and Byrd today in introducing legislation to stop the
entertainment industry from deceptively marketing adult-rated material
to children, legislation that hopefully will make the hard job of
raising kids in today's culture a little easier for America's parents.
As my colleagues may recall, Federal Trade Commission released a
groundbreaking report last fall documenting the seriousness of this
problem. Specifically, the FTC found that the movie, music, and video
game industries had been routinely and aggressively targeting the sale
of heavily-violent, adult-rated products to children. Some companies
were going so far as to conduct focus groups for R-rated slasher films
with 9- and 10-year olds and to pass out promotional materials for
other violent R-rated movies at Campfire Girl meetings and Boys and
Girls Clubs.
This report engendered a lot of outrage, and with good reason. These
industries were making a mockery of the ratings systems that they had
created and promoted. They were also making an end run around America's
parents, in effect cutting out the middle mom and dad to target
violent, harmful materials directly to children. The report also
generated a number of promises from the offending industries to change
their ways and strengthen their self-regulatory programs.
This week, the FTC released a follow-up report to evaluate how well
the entertainment industry has done in keeping its promises, and there
was some encouraging news. The FTC found in their snapshot survey that
the movie and video game industries had made real progress in limiting
their advertising in popular teen venues and in providing more rating
information in their marketing.
Other independent analyses show similarly encouraging results. Ad
revenues for R-rated films on MTV are apparently declining. Disney,
Warner Brothers, and Fox have pledged not to market R-rated movies to
children. And several other studios have decided against making or
distributing heavily-violent movies that were once regularly targeted
at kids.
I appreciate these steps, which may well result in reduced revenues
for some of these companies, and which show that our government can
work on behalf of parents to prod the entertainment industry to draw
some lines to protect our children without approaching censorship.
But much as I appreciate this progress, I cannot really give a full-
blow hooray for Hollywood, because the FTC report makes clear that this
problem has not been solved. Some video game makers and movie studios,
including those that have pledged not to unfairly target kids, are
still advertising adult-rated products in places popular with young
teens. And the leading music companies and their trade group, the RIAA,
have sadly been MIA, doing little if anything to respond to the FTC
report and curb the marketing of obscenity-laced records to kids.
I am also concerned about the future. The FTC rightly recommended
that the lasting solution to this problem is responsible self-
regulation, specifically, uniform policies adopted by the entertainment
industry prohibiting the targeting of adult-rated material to children
and meaningful sanctions to enforce those standards. Unfortunately,
[[Page S4009]]
to date only the video game industry has agreed, and commendably so, to
meet this recommendation and truly police themselves. That means there
is no permanent mechanism of accountability for the movie and music
industries, no ongoing norm or standard that says it is wrong to market
adult-rated material to children. And I fear that the competitive
pressures in these markets are so intense that they will once again
lead companies to do exactly that once the scrutiny goes away.
That is why I feel we must go forward with a legislative response.
The bill we are introducing today would provide a narrowly-tailored
shield to help protect our children from this kind of unfair and
unhealthy targeting. It would treat the marketing of adult-rated
movies, music recordings, and video games to children like any other
deceptive act that harms consumers, and give the FTC the same authority
it has under the current false and deceptive advertising laws to bring
actions against companies that engage in deceptive practices. In
particular, it would give the FTC the authority to penalize companies
that violate this provision with civil fines of up to $11,000 per
offense.
Some will claim this is censorship. But the truth is we're not
empowering the FTC to regulate content in any way or even to make
judgments about what products are appropriate for children. We are
simply saying that if you voluntarily label a product as being
unsuitable for kids, and then turn around and market it in a way that
directly contradicts that rating, you should be held accountable, just
like any other company that misleads consumers. That's not censorship,
that's common sense.
The bottom line here is that the First Amendment is not a license to
deceive. And this legislation translates that important principle into
policy. It says to the people who run the entertainment industry that
they cannot have it both ways. They cannot label their products for
adults and target them to kids. And they cannot continue to undermine
their ratings and undercut the authority of parents.
I ask my colleagues today on both sides of the aisle for their
support on this bill and the ongoing effort to help protect their
children from harmful media messages. I thank the chair, and ask
unanimous consent that my statement and bill be included in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 792
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 ``Media Marketing
Accountability Act of 2001''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Children have easy access to a variety of media and
entertainment options without leaving their own homes. The
vast majority of homes with children have a VCR, a CD player,
and either a video game console or a personal computer.
(2) Children, and especially teenagers, spend a large
amount of time listening to music, seeing movies, and playing
video games. Specifically:
(A) Children ages 8 through 13 spend approximately 3 hours
per week in a movie theater, on average. In addition, 62
percent of children ages 9 through 17 spent an average of 52
minutes per day watching video tapes.
(B) 82 percent of children play video games, and do so for
33 minutes per day, on average.
(C) Children ages 14 through 18 listen to music
approximately 2\1/2\ hours per day on average.
(3) Teenagers spend tens of millions of dollars annually on
movies, music, and video games, making them a highly valuable
demographic group to the producers and distributors of
entertainment products.
(4) Media violence can be harmful to children. Most
scholarly studies on the impact of media violence find a high
correlation between exposure to violent content and
aggressive or violent behavior. Additional studies find a
high correlation between exposure to violent content and a
desensitization to and acceptance of violence in society.
(5) On September 11, 2000, the Federal Trade Commission
reported that companies in the music, movie, and video game
industries routinely target children under age 17 in the
advertisement of adult-rated products. Specifically:
(A) The Commission found that 80 percent of the R-rated
movies studied had been targeted to children. In addition,
marketing plans for 64 percent of the R-rated movies studied
explicitly mentioned children under age 17 as part of the
target audience.
(B) The Commission found that all marketing plans for music
recordings with explicit content labels either explicitly
mentioned children under age 17 as part of the target
audience or called for ad placement in media that would reach
a majority or substantial percentage of children under age
17.
(C) The Commission found that 70 percent of Mature-rated
video games studied were targeted to children under age 17,
and 51 percent explicitly mentioned children under age 17 as
part of the target audience. Additionally, the Commission
found that 91 percent of the video game manufacturers studied
had at one time expressly identified children under age 17 as
the core, primary, or secondary audience of an M-rated game.
(6) To correct this problem, the Commission called on these
industries to adopt voluntary, uniform policies expressly
prohibiting these practices and to enforce these policies
with real sanctions for violations.
(7) To date, as the Commission noted in a follow-up report
released on April 24, 2001, only the video game industry has
agreed to adopt such a marketing code. The Commission also
noted that, despite some encouraging changes in behavior
since the release of the Commission's original report in
2000, a number of companies in all three industries have
nevertheless continued to market adult-rated products in
venues popular with children.
(8) Because the entertainment industry continues to target
its advertising of adult-rated products to children, there is
need for narrowly targeted legislation to prohibit, as a
false and deceptive trade practice, the targeting of children
in the advertisement and other marketing of products rated
for adults, and to authorize the Federal Trade Commission to
stop these practices.
TITLE I--TARGETED MARKETING OF ADULT-RATED MEDIA TO CHILDREN
SEC. 101. PROHIBITION ON TARGETED MARKETING TO MINORS OF
ADULT-RATED MEDIA AS UNFAIR OR DECEPTIVE
PRACTICE.
(a) In General.--The targeted advertising or other
marketing to minors of an adult-rated motion picture, music
recording, or electronic game, in or affecting commerce,
shall be treated as a deceptive act or practice within the
meaning of section 5 of the Federal Trade Commission Act (15
U.S.C. 45), and is hereby declared unlawful.
(b) Treatment as Targeted Advertising or Marketing to
Minors.--For purposes of this section, the advertising or
other marketing of an adult-rated motion picture, music
recording, or electronic game shall be treated as targeted
advertising or other marketing of such product to minors if--
(1) the advertising or marketing--
(A) is intentionally directed to minors; or
(B) is presented to an audience of which a substantial
proportion is minors; or
(2) the Commission determines that the advertising or
marketing is otherwise directed or targeted to minors.
SEC. 102. SAFE HARBOR.
(a) In General.--The advertising or other marketing to
minors of an adult-rated motion picture, music recording, or
electronic game shall not be treated as targeted advertising
or other marketing to minors, for purposes of section 101, if
the producer or distributor responsible for the advertising
or marketing adheres to a voluntary self-regulatory system
with respect to such product that satisfies the criteria
under subsection (b) and is subject to the sanctions referred
to in subsection (b)(3).
(b) Criteria.--The Federal Trade Commission shall, by rule,
establish the criteria referred to in subsection (a). Under
such criteria, a voluntary self-regulatory system shall
include the following elements:
(1) An age-based rating or labeling system for the product
in question.
(2) For all products that are rated or labeled as adult-
rated under such system--
(A) prohibitions on the targeted advertising or other
marketing to minors of such products; and
(B) other policies to restrict, to the extent feasible, the
sale, rental, or viewing to or by minors of such products.
(3) Procedures, including sanctions for non-complying
producers and distributors, meeting such requirements as the
Commission includes in such criteria in order to assure
compliance with the prohibitions and other policies referred
to in paragraph (2).
SEC. 103. REGULATIONS.
(a) In General.--The Federal Trade Commission shall
prescribe rules that define with specificity the acts or
practices that are deceptive acts or practices under section
101.
(b) In Particular.--The rules under subsection (a)--
(1) shall specify criteria for determining whether or not
an audience is comprised of a substantial proportion of
minors for purposes of section 101(b)(1)(B); and
(2) may include requirements for the purpose of preventing
acts or practices that are deceptive acts or practices under
section 101.
SEC. 104. MATTERS RELATING TO REGULATIONS.
(a) In General.--The Federal Trade Commission shall
prescribe rules under sections 102 and 103 in accordance with
the provisions of section 553 of title 5, United States Code.
(b) Time Limit.--The Commission shall prescribe the
regulations required under sections 102 and 103(b)(1) not
later than 12 months after the date of the enactment of this
Act.
SEC. 105. ENFORCEMENT.
(a) In General.--This title shall be enforced by the
Federal Trade Commission
[[Page S4010]]
under the provisions of the Federal Trade Commission Act (15
U.S.C. 41 et seq.).
(b) Actions by Commission.--
(1) In general.--The Commission shall prevent any person
from violating section 101, or a rule of the Commission under
section 103, in the same manner, by the same means, and with
the same jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal Trade
Commission Act were incorporated into and made a part of this
title.
(2) Particular rules.--A rule prescribed under section
103(b)(1) shall be treated as a rule prescribed under section
18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C.
57a(a)(1)(B)), and any violation of a rule prescribed under
such section 103 shall be treated as a violation of a rule
respecting unfair or deceptive acts or practices under
section 5 of the Federal Trade Commission Act (15 U.S.C. 45).
(3) Rights and liabilities of parties.--Any person or
entity that violates section 101, or a rule of the Commission
under section 103, shall be subject to the penalties, and
entitled to the privileges and immunities, provided in the
Federal Trade Commission Act in the same manner, by the same
means, and with the same jurisdiction, powers, and duties as
though all applicable terms and provisions of that Act were
incorporated into and made a part of this title.
(c) Effect on Other Laws.--Nothing in this title shall be
construed to limit the authority of the Commission under any
other provision of law.
SEC. 106. DEFINITIONS.
In this title:
(1) Adult-rated.--The term ``adult-rated'', in the case of
a motion picture, music recording, or electronic game, means
a rating or label voluntarily assigned by the producer or
distributor of such product, including a rating or label
assigned pursuant to an industry-wide rating or labeling
system, which rating or label--
(A) indicates or signifies that--
(i) such product is or may be appropriate or suitable only
for adults; or
(ii) access to such product by minors should be restricted;
or
(B) in the case of a music recording, advises or signifies
that such product may contain explicit content, including
strong language or expressions of violence, sex, or substance
abuse.
(2) Minor.--The term ``minor'' means an individual below
the age established under the rating or labeling system in
question to be an appropriate audience for adult-oriented
material, but in no event includes an individual 17 years of
age or older. If no specific age is so established under the
rating or labeling system in question, the term means an
individual less than 17 years of age.
(3) Adult.--The term ``adult'' means an individual who is
no longer a minor.
(4) Electronic game.--The term ``electronic game'' means
any interactive entertainment software, including any
computer game, video game, or on-line game, sold or rented on
any tangible medium or by any electronic or on-line medium by
which the right to play a specified interactive-
entertainment-software product is purchased.
(5) Motion picture.--The term ``motion picture'' means any
theatrical motion picture shown in a commercial theater or
sold or rented by videotape, digital recording, or other
tangible medium or by any electronic or on-line medium by
which the right to play an individual theatrical motion
picture is purchased, except that such term shall not include
anything shown on broadcast television or cable television.
(6) Music recording.--The term ``music recording'' means
any recording of music sold or rented on compact disk, tape
cassette, vinyl record, music video, or other tangible medium
or by any electronic or on-line medium by which the right to
hear a specified work of music is purchased, except that such
term shall not include anything shown on broadcast television
or cable television.
SEC. 107. EFFECTIVE DATE.
This title shall take effect 90 days after the date of the
enactment of this Act.
TITLE II--OTHER MATTERS
SEC. 201. STUDY OF MARKETING PRACTICES OF ENTERTAINMENT
INDUSTRIES REGARDING ADULT-RATED MATERIALS.
(a) In General.--The Federal Trade Commission shall conduct
a study of the advertising and other marketing practices of
the motion picture industry, music recording industry, and
electronic game industry regarding adult-rated motion
pictures, music recordings, and electronic games.
(b) Matters To Be Studied.--In conducting the study under
subsection (a), the Commission may examine--
(1) whether and to what extent the industries referred to
in that subsection direct to minors the advertising and
marketing of adult-rated materials, including--
(A) whether such materials are advertised or promoted in
media outlets in which minors are present in substantial
numbers or comprise a substantial percentage of the audience;
and
(B) whether such industries use other marketing practices
designed to attract minors to such materials;
(2) whether and to what extent retail merchants, movie
theaters, or others who engage in the sale or rental for a
fee of products of such industries--
(A) have policies to restrict the sale, rental, or viewing
to or by minors of adult-rated materials; and
(B) have procedures to ensure compliance with such
policies;
(3) whether and to what extent such industries require,
monitor, or encourage the enforcement of their voluntary
rating or labeling systems by industry members, retail
merchants, movie theaters, or others who engage in the sale
or rental for a fee of the products of such industries;
(4) whether and to what extent such industries engage in
activities to educate the public in the existence, use, or
efficacy of their voluntary rating or labeling systems; and
(5) whether and to what extent the policies and procedures
referred to in paragraph (2), any activities referred to in
paragraphs (3) and (4), and any other activities of such
industries are effective in restricting the access of minors
to adult-rated materials.
(c) Factors in Determination.--In determining whether the
products of an industry are adult-rated for purposes of
subsection (b), the Commission shall use the voluntary
industry rating or labeling system of the industry, both as
in effect on the date of the enactment of this Act and as
modified after that date.
(d) Authorities.--In conducting the study under subsection
(a), the Commission may use its authority under section 6(b)
of the Federal Trade Commission Act (15 U.S.C. 46(b)) to
require the filing of reports or answers in writing to
specific questions, as well as to obtain information, oral
testimony, documentary material, or tangible things.
(e) Reports.--
(1) Requirement.--The Commission shall submit to Congress
and the public two reports on the study under subsection (a),
as follows:
(A) An initial report, not later than two years after the
date of the enactment of this Act.
(B) A final report, not later than six years after that
date.
(2) Elements.--Each report under paragraph (1) shall
include--
(A) a description of the study conducted under subsection
(a) during the period covered by the report;
(B) any findings and recommendations of the Commission
arising out of the study as of the end of that period; and
(C) the identification of the particular producers and
distributors, if any, engaged in advertising or other
marketing practices relevant to such findings and
recommendations.
(f) Definitions.--In this section, the terms ``adult-
rated'', ``electronic game'', ``motion picture'', ``music
recording'', and ``minor'' have the meanings given those
terms in section 106.
SEC. 202. SEPARABILITY.
If any provision of this Act, or the application of such
provision to any person, partnership, corporation, or
circumstance, is held invalid, the remainder of this Act, and
the application of such provision to any other person,
partnership, corporation, or circumstance, shall not be
affected thereby.
Mr. KOHL. Mr. President, I rise today with my colleague Senator
Lieberman to introduce the Media Marketing Accountability Act of 2001.
For too long, the entertainment industry has drawn a bullseye on our
children's backs, targeting them with violent video games, movies and
music. Media violence has a clear and dangerous effect on our children,
and it must be curbed.
Last fall's Federal Trade Commission report confirmed some of our
worst fears. It found that more than 70 percent of movie, video game
and music companies aggressively marketed their violent, adult-rated
products to children. And while this week's report showed some
meaningful progress, the ``snapshot'' it took didn't exactly reveal a
pretty picture. Last fall, Senator Lieberman and I pledged not to sit
by idly. Today we're here to make good on our promise.
This legislation is simple. It targets the worst behavior. The
entertainment industry won't be able to speak out of both sides of
their mouths anymore, saying that a product is harmful to children, but
then luring them into the theaters or stores to see it or buy it. This
bill gives the Federal Trade Commission the authority it needs to go
after the bad actors who try to mislead our families and our children.
Let me be a little more specific about what the bill does. This
legislation gives the FTC the authority to prosecute entertainment
companies for deceptive trade practices if they target adult-rated
entertainment to children. This legislation doesn't create a whole new
structure of rules and punishments; it simply adds this bad behavior by
entertainment companies to a list of misconduct that the FTC already
has the power to punish.
But the bill also rewards companies for good behavior. It includes a
safe harbor which shields companies from prosecution if they already
abide by a self-regulatory system that includes an age-based rating
system, prohibits the marketing of adult rated material to children,
and punishes for non-compliance. Finally, the legislation calls for
[[Page S4011]]
two additional studies by the FTC over the next six years.
Let me give you a concrete example of the type of behavior this bill
aims to prohibit. Last fall's report uncovered a film industry practice
of including young children in the test groups for R-rated films.
Studios asked ten-year-olds to explain what they like about a violent,
R-rated movie, and then the studio used the feedback to tailor their
advertising campaign to lure youngsters into the theaters. We all agree
this behavior is just plain wrong, and it is this kind of behavior that
our legislation will penalize.
Our bill does not touch the content produced by the industry, it
simply targets specific, egregious behavior. After all, no one is
saying that the entertainment industry doesn't produce high-quality and
important products. But we all agree that not every product is
appropriate for children, and the Federal Government has a legitimate
interest in protecting children, a vulnerable audience, from being
targeted with violent and vulgar content that the industry itself has
identified as inappropriate. Our narrowly tailored legislation will
help protect children and families from this kind of deception.
Finally, our bill should not discourage the entertainment industry
from rating its products. To begin with, companies that are already
regulating themselves effectively will qualify for protection under our
safe harbor. The industry's threat to alter or eliminate their rating
systems is as irresponsible to families as the behavior we're trying to
prohibit with this measure. But beyond that, enactment of this
legislation would not translate to constant legal action against the
entertainment industry. The Federal Trade Commission would only
prosecute those companies who have clearly and flagrantly targeted
children with adult-rated material. As long as companies advertise
their adult-rated products to a logical target audience, they should
have no concern about this legislation.
______
By Mrs. BOXER (for herself, Mr. Reid, Mr. Lieberman, Mrs.
Clinton, Mr. Corzine, Mr. Kennedy, and Mr. Wellstone):
S. 796. A bill to amend the Safe Drinking Water Act to ensure that
drinking water consumers are informed about the risks posed by arsenic
in drinking water, to the Committee on Environment and Public Works.
Mrs. BOXER. Mr. President, we have had the same 50 parts per billion
standard for arsenic in our drinking water since 1942. Since then,
study after study has confirmed that this level of arsenic in our
drinking water is unsafe. After decades of review, a final drinking
water standard was finally set to go into effect in March of this year.
The new standard would have required no more than 10 parts per billion
arsenic in drinking water.
Unfortunately, the Bush Administration stopped this new rule from
going into effect. This decision was a major blow to public health in
this country. Arsenic causes lung cancer, skin cancer, and bladder
cancer. We know that if you drink water at the current standard for
arsenic you have a 1 in 100 chance of getting cancer. The Bush
Administration has decided that we can wait, despite mountains of
scientific evidence on the serious health threat posed by arsenic. By
suspending the new arsenic standard, the President is preventing
communities from getting started on the upgrades they need to make to
their drinking water systems. This is unacceptable, and I am a co-
sponsor of legislation that would restore the 10 parts per billion
standard.
Another consequence of the Bush Administration's decision to suspend
the new rule for arsenic has received less attention but is also very
important. The suspended rule contained provisions on the public's
right to know what level of arsenic is in its drinking water and what
the possible health effects may be. The suspended rule requires notice
to consumers containing very specific information on the health risks
posed by arsenic. This notice would have been required at 5 parts per
billion. This is less than the maximum level permitted in drinking
water, but is necessary because there is still a risk posed by arsenic
at this level.
I believe that the public has a right to know if there is an
environmental threat in their community. If the public is fully
informed about environmental threats, they may have the opportunity to
avoid them. So, today I am introducing the ``Community Right to Know
Arsenic Risk Act.''
My bill would restore the requirements in the suspended rule on the
public's right to know. It would ensure that notice is given at the 5
parts per billion level.
The level of arsenic found in drinking water in many communities
poses a serious risk to public health. I am especially concerned about
the most vulnerable members of the community, including children, the
elderly, and AIDS or cancer patients, to name a few. I am committed to
full disclosure to consumers of both the levels of arsenic in drinking
water and the possible health effects. Drinking water that may meet
federal standards still may pose health risks that should be known to
the consumer. This is certainly the case with arsenic. The consumer
should have the right to choose alternative water sources or to seek
tighter standards. This is a minimum requirement. I encourage my
colleagues to co-sponsor this legislation and 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. 796
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 ``Community Right-to-Know
Arsenic Risk Act''.
SEC. 2. NOTICE CONCERNING RISKS POSED BY ARSENIC IN DRINKING
WATER.
Part F of the Safe Drinking Water Act (42 U.S.C. 300j-21 et
seq.) is amended by adding at the end the following:
``SEC. 1466. NOTICE CONCERNING RISKS POSED BY ARSENIC IN
DRINKING WATER.
``(a) In General.--A consumer confidence report prepared by
a community water system under section 141.154 of title 40,
Code of Federal Regulations (or a successor regulation),
shall include a short educational statement concerning
arsenic that--
``(1) uses language such as the following: `While your
drinking water meets EPA's standard for arsenic, it does
contain arsenic. EPA's standard is based not only on the
possible health effects of arsenic, but also on the costs of
removing arsenic from drinking water. EPA continues to
research the health effects of arsenic ingestion, which is a
mineral known to cause cancer in humans at high
concentrations and is linked to other health effects such as
skin damage and circulatory problems.'; or
``(2) uses substantially similar language developed by the
community water system in consultation with the State agency
having jurisdiction over safe drinking water matters.
``(b) Applicability.--Subsection (a) applies to any
community water system that--
``(1) is required to prepare and deliver consumer
confidence reports under subpart O of title 40, Code of
Federal Regulations (or a successor regulation); and
``(2)(A) with respect to a report required to be delivered
under that subpart not later than July 1, 2001, detects
arsenic in the drinking water provided by the community water
system at a level that is above 0.025 milligrams per liter
but below the maximum contaminant level; and
``(B) with respect to a report required to be delivered
under that subpart after July 1, 2001, detects arsenic in the
drinking water provided by the community water system at a
level that is above 0.005 milligrams per liter but that is
equal to or below the maximum contaminant level.''.
____________________