[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.''.

                          ____________________