Congressional Record, Volume 147 Issue 59 (Thursday, May 3, 2001)

[Congressional Record Volume 147, Number 59 (Thursday, May 3, 2001)]
[Senate]
[Pages S4247-S4270]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. TORRICELLI (for himself and Ms. Snowe):
S. 819. A bill to amend the Public Health Service Act and Employee
Retirement Income Security Act of 1974 to require that group and
individual health insurance coverage and group health plans provide
coverage for qualified individuals for bone mass measurement (bone
density testing) to prevent fractures associated with osteoporosis; to
the Committee of Health, Education, Labor, and Pensions.
Mr. TORRICELLI. Mr. President, I rise today to introduce the Early
Detection and Prevention of Osteoporosis and Related Bone Diseases Act
of 2001 along with my colleague from Maine, Senator Snowe.
Osteoporosis and other related bone diseases pose a major public
health threat. More than 28 million Americans, 80 percent of whom are
women, suffer from, or are at risk for, osteoporosis. Between three and
four million Americans suffer from related bone diseases like Paget's
disease or osteogenesis imperfecta. Today, in the United States, 10
million individuals already have osteoporosis and 18 million more have
low bone mass, placing them at increased risk. Osteoporosis is
preventable through the use of new technology, yet the majority of
Americans with the disease remain undiagnosed and untreated.
Osteoporosis is often called the ``silent disease'' because bone loss
occurs without symptoms. Often people do not know they have
osteoporosis until their bones become so weak that a sudden bump or
fall causes a fracture or a vertebrae to collapse. Every year, there
are 1.5 million bone fractures caused by osteoporosis. Half of all
women, and one-eighth of all men, age 50 or older, will suffer a bone
fracture due to osteoporosis.
The consequences of osteoporosis are often unrecognized. In New
Jersey, individuals hospitalized with osteoporosis fractures average
9.3 days in the hospital for hip fracture and 71 days for vertebral
fracture. National statistics show that 10 to 20 percent of people with
hip fracture either die within six months, cannot walk without aid or
require long-term care. Education is needed to encourage individuals
and their providers to diagnose osteoporosis early and treat the
disease swiftly, preventing costly and debilitating fractures.
Osteoporosis is a progressive condition that has no known cure; thus,
prevention and treatment are key. The Early Detection and Prevention of
Osteoporosis and Related Bone Diseases Act of 2001 seeks to combat
osteoporosis, and related bone diseases like Paget's disease by
requiring private health plans to cover bone mass measurement tests for
qualified individuals who are at risk for developing osteoporosis.
Bone mass measurement is the only reliable method of detecting
osteoporosis in its early stages. The test is non-invasive and painless
and is predictive of future fractures as high cholesterol or high blood
pressure is of heart disease or stroke. This legislation is similar to
a provision in the Balanced Budget Act of 1997 that requires Medicare
coverage of bone mass measurements.
Medical experts agree that osteoporosis is preventable. Thus, if the
toll of osteoporosis and other related bones diseases are to be
reduced, the commitment to prevention and treatment must be
significantly increased.
The bill is supported by the National Osteoporosis Foundation,
American Medical Women's Association, American Society for Bone &
Mineral Research, Osteogenesis Imperfecta Foundation, National
Association of Orthopedic Nurses, American Physical Therapy Association
and the Health Promotion Institute.
I ask unanimous consent 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. 819

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

SECTION 1. SHORT TITLE; FINDINGS.

(a) Short Title.--This Act may be cited as the ``Early
Detection and Prevention of Osteoporosis and Related Bone
Diseases Act of 2001''.
(b) Findings.--Congress makes the following findings:
(1) Nature of osteoporosis.--
(A) Osteoporosis is a disease characterized by low bone
mass and structural deterioration of bone tissue leading to
bone fragility and increased susceptibility to fractures of
the hip, spine, and wrist.
(B) Osteoporosis has no symptoms and typically remains
undiagnosed until a fracture occurs.
(C) Once a fracture occurs, the condition has usually
advanced to the stage where the likelihood is high that
another fracture will occur.

[[Page S4248]]

(D) There is no cure for osteoporosis, but drug therapy has
been shown to reduce new hip and spine fractures by 50
percent and other treatments, such as nutrition therapy, have
also proven effective.
(2) Incidence of osteoporosis and related bone diseases.--
(A) 28,000,000 Americans have (or are at risk for)
osteoporosis, 80 percent of which are women.
(B) Osteoporosis is responsible for 1.5 million bone
fractures annually, including more than 300,000 hip
fractures, 700,000 vertebral fractures and 200,000 fractures
of the wrists.
(C) Half of all women, and one-eighth of all men, age 50 or
older will have a bone fracture due to osteoporosis.
(D) Between 3,000,000 and 4,000,000 Americans have Paget's
disease, osteogenesis imperfecta, hyperparathyroidism, and
other related metabolic bone diseases.
(3) Impact of osteoporosis.--The cost of treating
osteoporosis is significant:
(A) The annual cost of osteoporosis in the United States is
$13,800,000,000 and is expected to increase precipitously
because the proportion of the population comprised of older
persons is expanding and each generation of older persons
tends to have a higher incidence of osteoporosis than
preceding generations.
(B) The average cost in the United States of repairing a
hip fracture due to osteoporosis is $32,000.
(C) Fractures due to osteoporosis frequently result in
disability and institutionalization of individuals.
(D) Because osteoporosis is a progressive condition causing
fractures primarily in aging individuals, preventing
fractures, particularly for post menopausal women before they
become eligible for medicare, has a significant potential of
reducing osteoporosis-related costs under the medicare
program.
(4) Use of bone mass measurement.--
(A) Bone mass measurement is the only reliable method of
detecting osteoporosis at an early stage.
(B) Low bone mass is as predictive of future fractures as
is high cholesterol or high blood pressure of heart disease
or stroke.
(C) Bone mass measurement is a non-invasive, painless, and
reliable way to diagnose osteoporosis before costly fractures
occur.
(D) Under section 4106 of the Balanced Budget Act of 1997,
Medicare provides coverage, effective July 1, 1999, for bone
mass measurement for qualified individuals who are at risk of
developing osteoporosis.
(5) Research on osteoporosis and related bone diseases.--
(A) Technology now exists, and new technology is
developing, that will permit the early diagnosis and
prevention of osteoporosis and related bone diseases as well
as management of these conditions once they develop.
(B) Funding for research on osteoporosis and related bone
diseases is severely constrained at key research institutes,
including the National Institute of Arthritis and
Musculoskeletal and Skin Diseases, the National Institute on
Aging, the National Institute of Diabetics and Digestive and
Kidney Diseases, the National Institute of Dental Research,
and the National Institute of Child Health and Human
Development.
(C) Further research is needed to improve medical knowledge
concerning--
(i) cellular mechanisms related to the processes of bone
resorption and bone formation, and the effect of different
agents on bone remodeling;
(ii) risk factors for osteoporosis, including newly
discovered risk factors, risk factors related to groups not
ordinarily studied (such as men and minorities), risk factors
related to genes that help to control skeletal metabolism,
and risk factors relating to the relationship of aging
processes to the development of osteoporosis;
(iii) bone mass measurement technology, including more
widespread and cost-effective techniques for making more
precise measurements and for interpreting measurements;
(iv) calcium (including bioavailability, intake
requirements, and the role of calcium in building heavier and
denser skeletons), and vitamin D and its role as an essential
vitamin in adults;
(v) prevention and treatment, including the efficacy of
current therapies, alternative drug therapies for prevention
and treatment, and the role of exercise; and
(vi) rehabilitation.
(D) Further educational efforts are needed to increase
public and professional knowledge of the causes of, methods
for avoiding, and treatment of osteoporosis.

SEC. 2. REQUIRING COVERAGE OF BONE MASS MEASUREMENT UNDER
HEALTH PLANS.

(a) Group Health Plans.--
(1) Public health service act amendments.--
(A) In general.--Subpart 2 of part A of title XXVII of the
Public Health Service Act (42 U.S.C. 300gg-4) is amended by
adding at the end the following:

``SEC. 2707. STANDARDS RELATING TO BENEFITS FOR BONE MASS
MEASUREMENT.

``(a) Requirements for Coverage of Bone Mass Measurement.--
A group health plan, and a health insurance issuer offering
group health insurance coverage, shall include (consistent
with this section) coverage for bone mass measurement for
beneficiaries and participants who are qualified individuals.
``(b) Definitions Relating to Coverage.--In this section:
``(1) Bone mass measurement.--The term `bone mass
measurement' means a radiologic or radioisotopic procedure or
other procedure approved by the Food and Drug Administration
performed on an individual for the purpose of identifying
bone mass or detecting bone loss or determining bone quality,
and includes a physician's interpretation of the results of
the procedure. Nothing in this paragraph shall be construed
as requiring a bone mass measurement to be conducted in a
particular type of facility or to prevent such a measurement
from being conducted through the use of mobile facilities
that are otherwise qualified.
``(2) Qualified individual.--The term `qualified
individual' means an individual who--
``(A) is an estrogen-deficient woman at clinical risk for
osteoporosis;
``(B) has vertebral abnormalities;
``(C) is receiving chemotherapy or long-term
gluococorticoid (steroid) therapy;
``(D) has primary hyperparathyroidism, hyperthyroidism, or
excess thyroid replacement;
``(E) is being monitored to assess the response to or
efficacy of approved osteoporosis drug therapy;
``(F) is a man with a low trauma fracture; or
``(G) the Secretary determines is eligible.
``(c) Limitation on Frequency Required.--Taking into
account the standards established under section 1861(rr)(3)
of the Social Security Act, the Secretary shall establish
standards regarding the frequency with which a qualified
individual shall be eligible to be provided benefits for bone
mass measurement under this section. The Secretary may vary
such standards based on the clinical and risk-related
characteristics of qualified individuals.
``(d) Restrictions on Cost-Sharing.--
``(1) In general.--Subject to paragraph (2), nothing in
this section shall be construed as preventing a group health
plan or issuer from imposing deductibles, coinsurance, or
other cost-sharing in relation to bone mass measurement under
the plan (or health insurance coverage offered in connection
with a plan).
``(2) Limitation.--Deductibles, coinsurance, and other
cost-sharing or other limitations for bone mass measurement
may not be imposed under paragraph (1) to the extent they
exceed the deductibles, coinsurance, and limitations that are
applied to similar services under the group health plan or
health insurance coverage.
``(e) Prohibitions.--A group health plan, and a health
insurance issuer offering group health insurance coverage in
connection with a group health plan, may not--
``(1) deny to an individual eligibility, or continued
eligibility, to enroll or to renew coverage under the terms
of the plan, solely for the purpose of avoiding the
requirements of this section;
``(2) provide incentives (monetary or otherwise) to
individuals to encourage such individuals not to be provided
bone mass measurements to which they are entitled under this
section or to providers to induce such providers not to
provide such measurements to qualified individuals;
``(3) prohibit a provider from discussing with a patient
osteoporosis preventive techniques or medical treatment
options relating to this section; or
``(4) penalize or otherwise reduce or limit the
reimbursement of a provider because such provider provided
bone mass measurements to a qualified individual in
accordance with this section.
``(f) Rule of Construction.--Nothing in this section shall
be construed to require an individual who is a participant or
beneficiary to undergo bone mass measurement.
``(g) Notice.--A group health plan under this part shall
comply with the notice requirement under section 714(g) of
the Employee Retirement Income Security Act of 1974 with
respect to the requirements of this section as if such
section applied to such plan.
``(h) Level and Type of Reimbursements.--Nothing in this
section shall be construed to prevent a group health plan or
a health insurance issuer offering group health insurance
coverage from negotiating the level and type of reimbursement
with a provider for care provided in accordance with this
section.
``(i) Preemption.--
``(1) In general.--The provisions of this section do not
preempt State law relating to health insurance coverage to
the extent such State law provides greater benefits with
respect to osteoporosis detection or prevention.
``(2) Construction.--Section 2723(a)(1) shall not be
construed as superseding a State law described in paragraph
(1).''.
(B) Conforming amendment.--Section 2723(c) of the Public
Health Service Act (42 U.S.C. 300gg-23(c)) is amended by
striking ``section 2704'' and inserting ``sections 2704 and
2707''.
(2) ERISA amendments.--
(A) In general.--Subpart B of part 7 of subtitle B of title
I of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1185 et seq.) is amended by adding at the end the
following:

``SEC. 714. STANDARDS RELATING TO BENEFITS FOR BONE MASS
MEASUREMENT.

``(a) Requirements for Coverage of Bone Mass Measurement.--
A group health plan, and a health insurance issuer offering
group health insurance coverage, shall include

[[Page S4249]]

(consistent with this section) coverage for bone mass
measurement for beneficiaries and participants who are
qualified individuals.
``(b) Definitions Relating to Coverage.--In this section:
``(1) Bone mass measurement.--The term `bone mass
measurement' means a radiologic or radioisotopic procedure or
other procedure approved by the Food and Drug Administration
performed on an individual for the purpose of identifying
bone mass or detecting bone loss or determining bone quality,
and includes a physician's interpretation of the results
of the procedure. Nothing in this paragraph shall be
construed as requiring a bone mass measurement to be
conducted in a particular type of facility or to prevent
such a measurement from being conducted through the use of
mobile facilities that are otherwise qualified.
``(2) Qualified individual.--The term `qualified
individual' means an individual who--
``(A) is an estrogen-deficient woman at clinical risk for
osteoporosis;
``(B) has vertebral abnormalities;
``(C) is receiving chemotherapy or long-term
gluococorticoid (steroid) therapy;
``(D) has primary hyperparathyroidism, hyperthyroidism, or
excess thyroid replacement;
``(E) is being monitored to assess the response to or
efficacy of approved osteoporosis drug therapy;
``(F) is a man with a low trauma fracture; or
``(G) the Secretary determines is eligible.
``(c) Limitation on Frequency Required.--The standards
established under section 2707(c) of the Public Health
Service Act shall apply to benefits provided under this
section in the same manner as they apply to benefits provided
under section 2707 of such Act.
``(d) Restrictions on Cost-Sharing.--
``(1) In general.--Subject to paragraph (2), nothing in
this section shall be construed as preventing a group health
plan or issuer from imposing deductibles, coinsurance, or
other cost-sharing in relation to bone mass measurement under
the plan (or health insurance coverage offered in connection
with a plan).
``(2) Limitation.--Deductibles, coinsurance, and other
cost-sharing or other limitations for bone mass measurement
may not be imposed under paragraph (1) to the extent they
exceed the deductibles, coinsurance, and limitations that are
applied to similar services under the group health plan or
health insurance coverage.
``(e) Prohibitions.--A group health plan, and a health
insurance issuer offering group health insurance coverage in
connection with a group health plan, may not--
``(1) deny to an individual eligibility, or continued
eligibility, to enroll or to renew coverage under the terms
of the plan, solely for the purpose of avoiding the
requirements of this section;
``(2) provide incentives (monetary or otherwise) to
individuals to encourage such individuals not to be provided
bone mass measurements to which they are entitled under this
section or to providers to induce such providers not to
provide such measurements to qualified individuals;
``(3) prohibit a provider from discussing with a patient
osteoporosis preventive techniques or medical treatment
options relating to this section; or
``(4) penalize or otherwise reduce or limit the
reimbursement of a provider because such provider provided
bone mass measurements to a qualified individual in
accordance with this section.
``(f) Rule of Construction.--Nothing in this section shall
be construed to require an individual who is a participant or
beneficiary to undergo bone mass measurement.
``(g) Notice Under Group Health Plan.--The imposition of
the requirements of this section shall be treated as a
material modification in the terms of the plan described in
section 102(a)(1), for purposes of assuring notice of such
requirements under the plan; except that the summary
description required to be provided under the last sentence
of section 104(b)(1) with respect to such modification shall
be provided by not later than 60 days after the first day of
the first plan year in which such requirements apply.
``(h) Preemption.--
``(1) In general.--The provisions of this section do not
preempt State law relating to health insurance coverage to
the extent such State law provides greater benefits with
respect to osteoporosis detection or prevention.
``(2) Construction.--Section 731(a)(1) shall not be
construed as superseding a State law described in paragraph
(1).''.
(B) Conforming amendments.--
(i) Section 731(c) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1191(c)), as amended by
section 603(b)(1) of Public Law 104-204, is amended by
striking ``section 711'' and inserting ``sections 711 and
714''.
(ii) Section 732(a) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1191a(a)), as amended by
section 603(b)(2) of Public Law 104-204, is amended by
striking ``section 711'' and inserting ``sections 711 and
714''.
(iii) The table of contents in section 1 of the Employee
Retirement Income Security Act of 1974 is amended by
inserting after the item relating to section 713 the
following new item:

``Sec. 714. Standards relating to benefits for bone mass
measurement.''.

(b) Individual Health Insurance.--
(1) In general.--Part B of title XXVII of the Public Health
Service Act is amended by inserting after section 2752 (42
U.S.C. 300gg-52) the following new section:

``SEC. 2753. STANDARDS RELATING TO BENEFITS FOR BONE MASS
MEASUREMENT.

``(a) In General.--The provisions of section 2707 (other
than subsection (g)) shall apply to health insurance coverage
offered by a health insurance issuer in the individual market
in the same manner as it applies to health insurance coverage
offered by a health insurance issuer in connection with a
group health plan in the small or large group market.
``(b) Notice.--A health insurance issuer under this part
shall comply with the notice requirement under section 714(g)
of the Employee Retirement Income Security Act of 1974 with
respect to the requirements referred to in subsection (a) as
if such section applied to such issuer and such issuer were a
group health plan.
``(c) Preemption.--
``(1) In general.--The provisions of this section do not
preempt State law relating to health insurance coverage to
the extent such State law provides greater benefits with
respect to osteoporosis detection or prevention.
``(2) Construction.--Section 2762(a) shall not be construed
as superseding a State law described in paragraph (1).''.
(2) Conforming amendments.--Section 2762(b)(2) of the
Public Health Service Act (42 U.S.C. 300gg-62(b)(2)) is
amended by striking ``section 2751'' and inserting ``sections
2751 and 2753''.
(c) Effective Dates.--
(1) Group health plans.--The amendments made by subsection
(a) shall apply with respect to group health plans for plan
years beginning on or after October 1, 2001.
(2) Individual market.--The amendments made by subsection
(b) shall apply with respect to health insurance coverage
offered, sold, issued, renewed, in effect, or operated in the
individual market on or after October 1, 2001.
______

By Mr. WYDEN (for himself and Mr. Craig):
S. 820. A bill to amend the Energy Policy Act of 1992 to assess
opportunities to increase carbon storage on national forests derived
from the public domain and to facilitate voluntary and accurate
reporting of forest projects that reduce atmospheric carbon dioxide
concentrations, and for other purposes; to the Committee on Energy and
Natural Resources.
Mr. WYDEN. Mr. President, today Senator Craig and I are introducing
legislation that uses a simple, scientifically sound and entirely
voluntary approach to combat global warming. It's not revolutionary,
and it's not regulatory. We believe growing more trees, bigger trees
and healthier trees is one of the most effective ways to remove
greenhouse gases from the atmosphere and help protect the earth's
climate. The Forest Resources for the environment and the Economy Act
of 2001 will expand the nation's forested lands and put our forests on
the frontlines in the battle against global warming.
Investing in healthy forests today is an investment in the well-being
of our planet for decades to come. In the Pacific Northwest, forests
are more than critical environmental resources--they are also a
cornerstone of our economy. In debates about forest policies, there are
those who have advocated an exclusively environmental pathway, and
others who have stressed an exclusively economic pathway. This bill is
part of what I believe is a third pathway through the woods, a path to
both stronger rural economies and healthier forests.
I introduced this bill with Senator Craig in the 106th Congress.
Though there have been numerous changes to the bill to address specific
concerns, the underlying functions of the bill remain the same: this
bill will reduce the buildup of greenhouse gases in the atmosphere and
help protect our global climate for ourselves, our children and our
grandchildren. It will provide improved wildlife and fish habitats and
protect our waterways. It will enhance our national forests by reducing
water pollution within their watersheds. It will provide jobs in the
forestry sector in areas that have been hard hit by declining timber
harvests. And it will grow additional timber resources on
underproductive private lands.
The legislation does all of this through entirely voluntary,
incentive-based approach. The bill makes new resources available to
private landowners through state-operated revolving loan programs that
provide assistance for tree planting and other forest management
actions. I know that this approach works because of the leadership of
my home state, Oregon. The loan

[[Page S4250]]

program is modeled after the innovative Forest Resource Trust, which
was established in Oregon in 1993, and is just one of the many ways
Oregon continues to lead the nation in state actions to reduce
greenhouse gas emissions. I am introducing this bill to make sure that
we take advantage of these opportunities across the country and
encourage more businesses to invest in the nation's forests.
The bill is based on recommendations of the National Academy of
Sciences to overcome the capital constraints that prevent non-
industrial, private forest land owners from growing healthy forests.
Almost 10 million landowners in the United States own 42 percent of the
non-industrial, private forest land in parcels of less than 100 acres.
Access to the low-interest loans provided by this bill can empower
these landowners to improve their lands while providing global
environmental protection.

In addition to establishing the state revolving loan programs, the
bill makes important changes to the Energy Policy Act of 1992 to
strengthen the voluntary accounting and verification of greenhouse gas
reductions from forestry activities. The bill directs the Secretary of
Agriculture to develop new guidelines on accurate and cost-effective
methods to account for and report real and credible greenhouse gas
reductions. These guidelines will be developed with the input of a new
Advisory Council representing industry, foresters, states, and
environment groups.
As I said above, numerous changes have been made to the bill since
its introduction in the 106th Congress. By a process of intellectual
give and take between various Congressional offices, stakeholder groups
and environmental organizations, this bill has been improved to offer
greater environmental protection opportunities and better science. The
bill now requires that all funded projects have ``a positive impact on
watersheds, fish habitats, and wildlife diversity.'' It promotes
reforestion activities for species that are native to a region. Also,
the bill now allows flexibility in the loan repayment requirements that
encourage the longer rotation, and permanent protection, of lands
reforested under this program. In addition, the new Advisory Council
will have three independent scientists instead of one and the members
must have an expertise in forest management; carbon storage reporting
will include monitoring requirements to assure the net increase of
carbon storage; and the bill allows for the incorporation of the latest
scientific and observational information. Overall, this bill is a solid
step forward in the long journey towards addressing global climate
change.
As in the last Congress, this bill will pay for itself by taking the
money that polluters pay when they are caught violating the Clean Air
Act and Clean Water Act and use it to expand our forests, protect
streams and rivers and help remove greenhouse gases from the air. In
fiscal year 1998, $45 million of these environmental penalties were
assessed against polluters. There are currently no guarantees that
these penalties, which revert to the General Fund, are used to improve
our environment. This bill would make this money available as loans to
small and medium landowners to cover the upfront costs of tree planting
and other activities that aid in the growth of healthy, productive
forests and provide better wildlife habitats.
We cannot afford to play Russian roulette with our global climate.
The total amount of greenhouse gases in our atmosphere depends, in
part, on the efficiency of forests and other natural ``sinks'' that
absorb carbon dioxide--the most significant greenhouse gas--from the
atmosphere. The implications are as simple as they are scientifically
sound--if we grow more trees, bigger trees, and healthier trees, we
will remove more greenhouse gases from the atmosphere and help protect
the global climate. According to the Pacific Forest Trust, our forest
lands in the United States are only storing one-quarter of the carbon
they can ultimately store. Just tapping a portion of this potential by
expanding and increasing the productivity of the nation's 737 million
acres of forests is an important part of a win-win strategy to slow
global warming. This bill takes an important first step toward
sequestering greenhouse gases on Federal lands: it directs the Forest
Service to report to Congress on options to increase carbon storage in
our national forests.

It is hard to believe that nine years ago, during the first Bush
Administration, both Democrat and Republican Senators proclaimed their
support for taking action to protect the climate system and reducing
the buildup of greenhouse gases in the atmosphere. When the 1992 United
Nations Framework Convention on Climate Change was ratified by the
Senate, Senators from both parties came to the floor to applaud this
commitment to begin reducing greenhouse gas emissions. And then-
President Bush supported that position as well. We cannot afford to let
the current debates about international treaties paralyze this Congress
when their are opportunities here at home to protect our environment in
ways that also provide jobs and economic growth.
This bill is about taking advantage of a clear win-win opportunity.
It's a win for the global environment. It's a win for sustainable
forestry. It's a win for local water protection. And it's a win for
rural communities. For these reasons, the bill has already received
positive reactions from timber companies and environmental
organizations alike, including the National Association of State
Foresters and the Society of American Foresters, American Forest and
Paper Association, American Forests, Environmental Defense Fund,
Governor John A. Kitzhaber of Oregon, PacificCorp, The Nature
Conservancy, and The Pacific Forest Trust.
I look forward to pursuing this common-sense step toward protecting
the environment and supporting our forest workers. This bill will have
a sequential referral to both the Senate Energy and Natural Resources
Committee and the Senate Agriculture Committee. These Committees share
jurisdiction over all our nations forests, public and private. They
represent the interests of the people who use our forests from the
National Forest visitor, to the large industrial land owner, to the
small woodlot owner. Through the combined efforts of both of these
Committees, I am sure that the bill will receive a thorough hearing. I
look forward to starting this process with a hearing in early May in
the Energy and Natural Resources Committee.
I ask unanimous consent that the text of the bill and the section-by-
section analysis of the Forest Resources for the Environment and the
Economy Act be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 820

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 ``Forest Resources for the
Environment and the Economy Act''.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--Congress finds that--
(1) the Federal Government should increase the long-term
forest carbon storage on public land while pursuing existing
statutory objectives;
(2) insufficient information exists on the opportunities to
increase carbon storage on public land through improvements
in forest land management;
(3) important environmental benefits to national forests
can be achieved through cooperative forest projects that
enhance fish and wildlife habitats, water, and other
resources on public or private land located in national
forest watersheds;
(4) forest projects also provide economic benefits,
including--
(A) employment and income that contribute to the
sustainability of rural communities; and
(B) ensuring future supplies of forest products;
(5) monitoring and verification of forest carbon storage
provides an important opportunity to create employment in
rural communities and substantiate improvements in natural
habitats or watersheds due to forestry activities; and
(6) sustainable production of biomass energy feedstocks
provides a renewable source of energy that can reduce carbon
dioxide emissions and improve the energy security of the
United States by diversifying energy fuels.
(b) Purpose.--The purpose of this Act is to promote
sustainable forestry in the United States by--
(1) increasing forest carbon sequestration in the United
States;
(2) encouraging long term carbon storage in forests of the
United States;
(3) improving water quality;
(4) enhancing fish and wildlife habitats;

[[Page S4251]]

(5) providing employment and income to rural communities;
(6) providing new sources of forest products;
(7) providing opportunities for use of renewable biomass
energy; and
(8) improving the energy security of the United States.

SEC. 3. DEFINITIONS.

In this Act:
(1) Carbon sequestration.--The term ``carbon
sequestration'' means the action of vegetable matter in--
(A) extracting carbon dioxide from the atmosphere through
photosynthesis;
(B) converting the carbon dioxide to carbon; and
(C) storing the carbon in the form of roots, stems, soil,
or foliage.
(2) Forestry carbon activity.--The term ``forestry carbon
activity'' means a forest management action that--
(A) increases carbon sequestration and/or maintains carbon
sinks,
(B) encourages long-term carbon storage, and
(C) has no net negative impact on watersheds and fish and
wildlife habitats.
(a) Forest carbon program.--The term ``forest carbon
program'' means the program established by the Secretary of
Agriculture under section 5 of the Forest Resources for the
Environment and the Economy Act, to provide assistance
through cooperative agreements and State revolving loan
funds.
(4) Forest carbon reservoir.--The term ``forest carbon
reservoir'' means trees, roots, soils, or other biomass
associated with forest ecosystems or products from the
biomass that store carbon.
(5) Forest carbon storage.--The term ``forest carbon
storage'' means the quantity of carbon sequestered from the
atmosphere and stored in forest carbon reservoirs, including
forest products.
(6) Forest land--
(A) In general.--The term ``forest land'' means land that
is, or has been, at least 10 percent stocked by forest trees
of any size.
(B) Inclusions.--The term ``forest land'' includes--
(i) land that had such forest cover and that will be
naturally or artificially regenerated; and
(ii) a transition zone between a forested and nonforested
area that is capable of sustaining forest cover.
(7) Forest management action.--The term ``forest management
action'' means the practical application of forestry
principles to the regeneration, management, utilization, and
conservation of forests to meet specific goals and
objectives, while maintaining the productivity of the
forests, including management of forests for aesthetics,
fish, recreation, urban values, water, wilderness, wildlife,
wood products, and other forest values.
(8) Invasive species.--The term ``invasive species'' means
any species that is not native to an ecosystem and whose
introduction does or is likely to cause economic or
environmental harm or harm to human health.
(9) Nonindustrial private forest.--The term ``nonindustrial
private forest'' means forest land that is privately owned by
an individual or corporation that does not control a forest
products manufacturing facility and where management may
include objectives other than timber production.
(10) Reforestation.--
(A) In general.--The term ``reforestation'' means the
reestablishment of forest cover naturally or artificially.
(B) Inclusions.--The term ``reforestation'' includes--
(i) planned replanting;
(ii) re-seeding; and
(iii) natural regeneration.
(11) revolving loan program.--The term ``revolving loan
program'' means a State revolving loan program established
under section 5.

SEC. 4. CARBON MANAGEMENT ON FEDERAL LAND; CARBON MONITORING
AND VERIFICATION GUIDELINES.

(a) Definitions.--Title XVI of the Energy Policy Act of
1992 is amended by inserting before section 1601 (42 U.S.C.
13381) the following:

``SEC. 1600. DEFINITIONS.

``In this title:
``(1) Carbon sequestration.--The term `carbon
sequestration' means the action of vegetable matter in--
``(A) extracting carbon dioxide from the atmosphere through
photosynthesis;
``(B) converting the carbon dioxide to carbon; and
``(C) storing the carbon in the form of roots, stems, soil,
or foliage.'
``(2) Forest carbon storage.--The term `forest carbon
storage' means the quantity of carbon sequestered from the
atmosphere and stored in forest carbon reservoirs, including
forest products.
``(3) Forest carbon program.--The term `forest carbon
program' means the program established by the Secretary of
Agriculture under section 5 of the Forest Resources for the
environment and the Economy Act, to provide financial
assistance through cooperative agreements and State revolving
loan funds for forest carbon activities.
``(4) Forest carbon reservoir.--The term `forest carbon
reservoir' means trees, roots, soils, or other biomass
associated with forest ecosystems or products from the
biomass that store carbon.
``(5) Forest management action.--The term `forest
management action' means the practical application of
forestry principles to the regeneration, management,
utilization, and conservation of forests to meet specific
goals and objectives, while maintaining the productivity of
the forests, including management of forests for aesthetics,
fish, recreation, urban values, water, wilderness, wildlife,
wood products, and other forest values.''
(b) Carbon Management on Federal Land.--Section 1604 of the
Energy Policy Act of 1992 (42 U.S.C. 13384) is amended--
(1) by inserting ``(a) Report.--'' before ``Not''; and
(2) by adding at the end the following:
``(b) Carbon Management on Federal Land.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, after consultation with
appropriate Federal agencies, the Secretary of Agriculture,
acting through the Chief of the Forest Service, shall report
to Congress on--
``(A) the quantity of carbon contained in the forest carbon
reservoir of the National Forest System and the methodology
and assumptions used to ascertain that quantity;
``(B) the potential to increase the quantity of carbon in
the National Forest System and provide positive impacts on
watersheds and fish and wildlife habitats through forest
management actions; and
``(C) the role of forests in the carbon cycle and the
contributions of U.S. forestry to the global carbon budget.
``(2) Contents.--The report shall also include an
assessment of any impacts of the forest management actions
identified under paragraph (1)(B) on timber harvests,
wildlife habitat, recreation, forest health, and other
statutory objectives of national forest system management.''
(c) Monitoring and Verification of Carbon Storage.--Section
1605(b) of the Energy Policy Act of 1992 (42 U.S.C. 13385(b))
is amended by adding at the end the following:
(5) Guidelines on reporting, monitoring, and verification
of carbon storage from forest management actions.--
``(A) In general.--Not later than 18 months after the date
of enactment of this paragraph, the Secretary of Agriculture,
acting through the Chief of the Forest Service, shall--
``(i) review the guidelines established under paragraph (1)
that address procedures for the accurate voluntary reporting
of greenhouse gas sequestration from tree planting and forest
management actions;
``(ii) make recommendations to the Secretary of Energy for
amendment of the guidelines; and
``(iii) provide an opportunity for public comment on the
guidelines established under subparagraph (A) prior to their
submission to the Secretary of Energy.
``(B) Carbon and forestry advisory council.--
``(i) Establishment.--The Secretary of Agriculture, acting
through the Chief of the Forest Service, shall establish a
Carbon and Forestry Advisory Council for the purpose of--
``(I) advising the Secretary of Agriculture in the
development and updating of guidelines for accurate voluntary
reporting of greenhouse gas sequestration from forest
management actions;
(II) evaluating the potential effectiveness of the
guidelines in verifying carbon inputs and outputs from
various forest management strategies;
``(III) estimating the effect of proposed implementation on
carbon sequestration and storage;
``(IV) assisting the Secretary of Agriculture in reporting
annually to Congress on the results of the carbon storage
program; and
``(V) assisting the Secretary of Agriculture in assessing
the vulnerability of forests to adverse effects of climate
change.
``(ii) Membership.--The Advisory Council shall be composed
of the following 16 members with interest and expertise in
carbon sequestration and forestry management, appointed by
the Secretaries of Agriculture and Energy:
``(I) 1 member representing national professional forestry
organizations;
``(II) 2 members representing environmental or conservation
organizations;
``(III) 1 member representing nonindustrial, private
landowners;
``(IV) 1 member representing forest industry;
``(V) 1 member representing American Indian Tribes;
``(VI) 1 member representing forest laborers;
``(VII) 3 members representing the academic scientific
community;
``(VII) 2 members representing State forestry
organizations;
``(IX) 1 member representing the Department of Energy;
``(X) 1 member representing the Environmental Protection
Agency;
``(XI) 1 member representing the Department of Agriculture;
``(XII) 1 member representing the Department of the
Interior
``(iii) Terms.--
``(I) In general.--Except as provided in subclause (III), a
member of the Advisory Council shall be appointed for a term
of 3 years.
``(II) Consecutive terms.--No individual may serve on the
Advisory Council for more than 2 consecutive terms.
``(III) Initial terms.--Of the members first appointed to
the Advisory Council--
``(aa) 1 member appointed under each of subclauses (II),
(VI), (VII), (X), and (XIII) of

[[Page S4252]]

clause (ii) shall serve an initial term of 1 year; and
``(bb) 1 member appointed under each of subclauses (I),
(IV), (VII), (IX), (XI), and (XIV) shall serve an initial
term of 2 years.
``(iv) Vacancy.--A vacancy on the Advisory Council shall be
filled in the manner in which the original appointment was
made.
``(v) Continuation.--Any member appointed to fill a vacancy
occurring before the expiration of the term shall be
appointed only for the remainder of the term.
``(vi) Compensation.--
``(I) In general.--Except as provided in subclause (II), a
member of the Advisory Council shall serve without
compensation, but may be reimbursed for reasonable costs
incurred while in the actual performance of duties vested in
the Advisory Council.
``(II) Federal officers and employees.--A member of the
Advisory Council who is a full-time officer or employee of
the United States shall receive no additional compensation or
allowances because of the service of the member on the
Advisory Council.
``(III) Support.--The Secretary shall provide financial and
administrative support for the Advisory Council.
``(vii) Use of existing council.--The Secretary of
Agriculture may use an existing council to perform the tasks
of the Carbon and Forestry Advisory Council providing--
``(I) Council representation, membership terms and
background, and Council responsibilities reflect those stated
in subparagraph (B), and
``(II) The responsibilities of the Council, as described in
subparagraph (A), are a priority for the Council.
``(C) Criteria.--
``(i) In general.--The recommendations described in
subparagraph (A)(ii) shall include reporting guidelines
that--
``(I) are based on--
``(aa) measuring increases in carbon storage in excess of
the carbon storage that would have occurred in the absence of
the reforestation, forest management, forest protection, or
other forest management actions; and
``(bb) comprehensive carbon accounting that reflects net
increases in the carbon reservoir and takes into account any
carbon emissions resulting from disturbance of carbon
reservoirs existing at the start of a forest management
action;
``(II) include options for--
``(aa) estimating the indirect effects of forest management
actions on carbon storage, including possible emissions of
carbon that may result elsewhere as a result of the project's
impact on timber supplies or possible displacement of carbon
emissions to other lands owned by the reporting party;
``(bb) quantifying the expected carbon storage over various
time periods, taking into account the likely duration of
carbon stored in the carbon reservoir; and
``(cc) considering the economic and social affects of
management alternatives.
``(ii) Accurate monitoring, measurement, and
verification.--
``(I) In General.--The recommendations described in
subparagraph (A)(ii) shall include recommended practices for
monitoring, measurement, and verification of carbon storage
from forest management actions.
``(II) Requirements.--The recommended practices shall, to
the maximum extent practicable--
``(aa) be based on statistically sound sampling strategies
that build on knowledge of the carbon dynamics of forests and
agricultural land;
``(bb) include cost-effective combinations of field
conditions measurements with modeling to compute carbon
stocks and changes in stocks;
``(cc) include guidance on how to sample and calculate
carbon sequestration across multiple participating
ownerships; and
``(dd) do not prevent use of more precise measurements, if
desired by a reporting entity.
``(D) State forest carbon programs.--The recommendations
described in subparagraph (A)(ii) shall include guidelines to
States for reporting, monitoring, and verifying carbon
storage under the forest carbon program.
``(E) Biomass energy projects.--The recommendations
described in subparagraph (A)(ii) shall include guidelines
for calculating net greenhouse gas reductions from biomass
energy projects, including--
``(i) net changes in carbon storage resulting from changes
in land use; and
``(ii) the effect that using biomass to generate
electricity (including co-firing of biomass with fossil
fuels) has on the displacement of greenhouse gas emissions
from fossil fuels.
``(F) Amendment of guidelines.--Not later than 180 days
after receiving the recommendations from the Secretary of
Agriculture, the Secretary of Energy, acting through the
Administrator of the Energy Information Administration, shall
revise the guidelines established under paragraph (1) to
include the recommendations.
``(G) Review of guidelines by the advisory council.--
``(i) Periodic review.--At least every 24 months, the
Secretary of Agriculture shall--
``(I) convene the Advisory Council to evaluate the latest
scientific and observational information on reporting,
monitoring, and verification of carbon storage from forest
management actions; and
``(II) issue revised guidelines for reporting, monitoring,
and verification of carbon storage from forest management
actions as necessary.
``(ii) Consistency with future laws.--The Secretary of
Agriculture shall convene the Advisory Council as necessary
to ensure that the guidelines for reporting, monitoring, and
verification of carbon storage from forest management actions
are revised to be consistent with any Federal laws enacted
after the date of enactment of this Act.
``(6) Monitoring of forest carbon programs.--
``(A) In general.--Forest Carbon Program reports shall--
``(i) be developed in accordance with the guidelines issued
under paragraph (1),
``(ii) state the quantity of carbon storage realized;
``(iii) include the data used to monitor and verify the
carbon storage,
``(iv) be consistent with reporting requirements of the
Energy Information Administration, and
``(v) ensure the avoidance of double counting of forest
carbon activities.
``(B) States and cooperative agreement participants.--
States receiving assistance to establish revolving loans and
entities participating in cooperative agreements for forest
carbon programs shall--
``(i) monitor and verify carbon storage achieved under the
program in accordance with guidelines issued under
subparagraph (5)(E),
``(ii) report annually to the Secretary of Agriculture on
the results of the carbon storage program, and
``(iii) report annually to any non-governmental
organization, business, or other entity that provides funding
for the carbon storage program.
``(C) Secretary of agriculture.--
``(i) In general.--The Secretaries shall report annually to
Congress on the results of the carbon storage program.
``(ii) Inclusions.--The report shall include--
``(I) specifications consistent with subparagraph (A),
``(II) an assessment of the effectiveness of monitoring and
verification,
``(III) a report on carbon activities associated with
cooperative agreements for the forest carbon program, and
``(IV) a State Forest Carbon Program compliance report
established by--
``(aa) reviewing reports submitted by states under clause
(B)(ii),
``(bb) verifying compliance with the guidelines under
subparagraph (A),
``(cc) notifying the State of compliance status,
``(dd) notifying the State of any corrections that are
needed to attain compliance, and
``(ee) establishing an opportunity for re-submission by the
State.''

SEC. 5. FOREST CARBON COOPERATIVE AGREEMENTS AND LOAN
PROGRAM.

(a) Forest Carbon Cooperative Agreement.--The Secretary may
enter into cooperative agreements with willing landowners
from State or local governments, American Indian tribes,
Alaska Natives, native Hawaiians and private, nonprofit
entities for forest carbon activities on private land, state
land, American Indian land, Alaska Native land, or native
Hawaiian land.
(b) Forest Carbon Revolving Loan Program.--
(1) In general.--In collaboration with State Foresters and
non-governmental organizations, the Secretary shall provide
assistance to States so that States may establish a revolving
loan program for forest carbon activities on non-industrial
private forest (NIPF) land.
(2) Eligibility.--An owner of non-industrial private forest
land shall be eligible for assistance from a revolving loan
fund for forest carbon activity on not more than a total of
5,000 acres of their NIPF land holdings.
(3) Loan terms.--A loan agreement under the program shall--
(A) have loan interest rates that are established by the
State--
(i) as necessary to encourage participation of NIPF
landowners in the loan program,
(ii) not to exceed a real rate of return in excess of 3%,
and
(iii) that will further the forest carbon program
objectives;
(B) require that all loan obligations be repaid to the
State--
(i) at the time of harvest of land covered by the program;
or
(ii) in accordance with any other repayment schedule
determined by the State;
(iii) proportional to the percentage decrease of carbon
stock;
(C) include provisions that provide for private insurance
or that otherwise release the owner from the financial
obligation for any portion of the timber, forest products, or
other biomass that--
(i) is lost to insects, disease, fire, storm, flood, or
other natural destruction through no fault of the owner; or
(ii) cannot be harvested because of restrictions on tree
harvesting imposed by the Federal State, or local government
after the date of the agreement;
(D) impose a lien on all timber, forest products, and
biomass grown on land covered by the loan, with an assurance
that the terms of the lien shall transfer with the land on
sale, lease, or transfer of the land;
(E) include a buyout option that--
(i) specifies financial terms allowing the owner to
terminate the agreement before harvesting timber from the
stand established with loan funds; and

[[Page S4253]]

(ii) repays the loan with interest;
(F) recognize that, until the loan is paid in full by the
participating landowner or otherwise terminated in accordance
with this Act, all reductions in atmospheric greenhouse gases
achieved by the project funded by the loan are attributable
to the non-Federal entities that provide funding for a loan
(including the State or any other person, company, or non-
governmental organization that provides funding to the State
for purposes of issuing the loan); and
(G) include provisions for the monitoring and verification
of carbon storage.
(4) Cancellation of loan terms for permanent
conservation.--
(A) In general.--The State shall cancel the loan agreement
under paragraph (3) and any liens on the timber, forest
products, and biomass under paragraph (3)(C) if the borrower
donates to the State or may cancel the loan agreement under
paragraph (3) and any liens on the timber, forest products,
and biomass under paragraph (3)(C) if the borrower donates to
another appropriate entity a permanent conservation easement
that--
(i) furthers the purposes of this Act, including managing
the land in a manner that maximizes the forest carbon
reservoir of the land; and
(ii) permanently protects the covered private forest land
and resources at a level above what is required under
applicable Federal, State, and local law.
(B) Continuation of forest management actions.--The
conservation easement may allow the continuation of forest
management actions that increase carbon storage on the land
and forest or otherwise further the purposes of this Act.
(5) Reinvestment of funds.--All funds collected under a
loan issued under this subsection (including loan repayments,
loan buyouts, and any interest payments) shall be reinvested
by the State in the program and used by the State to make
additional loans under the program in accordance with this
subsection.
(6) Records.--The State Forester shall--
(A) maintain all records related to any loan agreement
funded from a revolving loan fund; and
(B) make the records available to the public.
(7) Matching funds.--
(A) In general.--In order to be eligible to continue
participating in the program, any State in the program under
this section shall provide matching funds equal to at least
25 percent of the Federal funds made available to the State
for the program, beginning the second year of program
participation.
(B) Form.--The State may provide the matching funds in the
form of in-kind administrative services, technical
assistance, and procedures to ensure accountability for the
use of Federal funds.
(8) Loan funding distribution.--
(A) In general.--Not later than 180 days after the date of
enactment of this Act, in consultation with State Foresters,
the Secretary shall--
(i) establish a formula under which Federal funds shall be
distributed under this subsection among eligible States; and
(ii) report the formula and methodology to Congress.
(B) Basis.--The formula shall--
(i) be based on maximizing the potential for meeting the
objectives of this Act;
(ii) give appropriate consideration to--
(I) the acreage of un-stocked or under-producing private
forest land in each State;
(II) the potential productivity of such land;
(III) the potential long-term carbon storage of such land;
(IV) the potential to achieve other environmental benefits;
(V) the number of owners eligible for loans under this
section in each State; and
(VI) the need for reforestation, timber stand improvement,
or other forestry investments consistent with the objectives
of this Act; and
(iii) give priority to States that have experienced or are
expected to experience significant declines in employment
levels in the forestry industries due to declining timber
harvests on Federal land.
(9) Private funding.--A revolving loan fund may accept and
distribute as loans any funds provided by non-governmental
organizations, businesses, or persons in support of the
purposes of this Act.
(10) Bonneville power administration.--
(A) In general.--The States of Washington, Oregon, Idaho,
and Montana may apply for funding from the Bonneville Power
Administration for purposes of funding loans that meet both
the objectives of this Act and the fish and wildlife
objectives of the Bonneville Power Administration under the
Pacific Northwest Electric Power and Conservation Act (16
U.S.C. 839 et seq.).
(B) Application of requirements under other law.--An
application under subparagraph (A) shall be subject to all
rules and procedures established by the Pacific Northwest
Electric Power and Conservation Planning Council and the
Bonneville Power Administration under the Pacific Northwest
Electric Power and Conservation Act (16 U.S.C. 839 et seq.).
(c) Requirements.--
(1) Eligible forestry carbon activities.--Eligible forestry
carbon activities that--
(A) help restore under-producing or understocked forest
lands,
(B) provide for protection of forests from non-forest use,
(C) allow a variety of sustainable management alternatives,
and
(D) have no net negative impact on watersheds and fish and
wildlife habitats.
(2) Guidance.--The Secretary, working through the US Forest
Service and in collaboration with States, shall provide
guidance on eligible forestry carbon activities based on the
criteria of this section.
(3) Activities required under other law.--Funding shall not
be provided under this section for activities required under
other applicable Federal, State, or local laws.
(4) Pre-agreement activities.--Funding shall not be
provided for costs incurred before entering into a
cooperative or loan agreement under this Act.
(5) Limitation on land considered for funding.--No new loan
agreements shall be entered into under this section to fund
reforestation of land harvested after the date of enactment
of this Act if the landowner received revenues from the
harvest sufficient to reforest the land.
(6) Eligible tree species.--
(A) In general.--Selection of tree species for loan
projects shall be consistent with Executive Order No. 13112,
``Invasive Species''.
(B) Program funding.--Funding for reforestation activities
shall be provided for--
(i) tree species native to a region,
(ii) tree species that formerly occupied the site, or
(iii) non-native tree species or hybrids that are non-
invasive.
(7) Forest-management plan.--Priority shall be given to
projects on land under a forestry management plan or forest
stewardship plan, if the plan is consistent with the
objectives of the carbon storage program.
(8) Use of funds.--
(A) funds will be used to pay--
(i) the cost of purchasing and planting tree seedings; and
(ii) other costs associated with the planted trees,
including planning, site preparation, forest management,
monitoring, measurement and verification, and consultant and
contractor fees.
(B) funds will not be used to--
(i) pay the owner for the owner's own labor; or
(ii) purchase capital items or expendable items, such as
vehicles, tools, and other equipment.
(9) Financial assistance amount.--The amount of financial
assistance provided under this section shall not exceed--
(A) 100 percent of total project costs, whether they
constitute the only funding source or are used in combination
with funds received from any other source; or
(B) $100,000 during any 2-year period.
(10) Federal funding.--During fiscal years 2001 through
2010, civil penalties collected under section 113 of the
Clean Air Act (42 U.S.C. 7413) and under section 309(d) of
the Federal Water Pollution Control Act (33 U.S.C. 1319(d))
shall be available, without further appropriation, to fund
cooperative agreements and revolving loan funds authorized in
this section.
(11) Allocation of funds.--
(A) In general.--The Secretary shall--
(i) allocate 15 percent of available funds for Cooperative
agreements as specified under subsection (a), and
(ii) allocate 85 percent of available funds for State
revolving loan programs as specified under subsection (b),
after determining that States have implemented a system to
administer the loans in accordance with this Act.
____

The Forest Resources for the Environment and the Economy Act--Section-
by-Section Analysis

The purposes of the bill are to develop monitoring and
verification systems for carbon reporting in forestry, to
increase carbon sequestration in forests by encouraging
private sector investment in forestry, and to promote
employment in forestry in the United States. The bill
achieves these purposes through three major actions: (1)
Guidelines for Accurate Carbon Accounting for Forests.--The
bill directs the Secretary of Agriculture, through the Forest
Service, to establish scientifically-based guidelines for
accurate reporting, monitoring, and verification of carbon
storage from forest management actions. The bill establishes
a multi-stakeholder Carbon and Forestry Advisory Council to
assist USDA in developing the guidelines.
(2) Report on Options to Increase Carbon Storage on Federal
Lands--The bill directs the Secretary of Agriculture, through
the Forest Service, to report to Congress on forestry options
to increase carbon storage in the National Forest System.
(3) State Revolving Loan Programs/Cooperative Agreements--
The bill provides assistance to plant and manage
underproducing or understocked forests to increase carbon
sequestration. Assistance is provided through Cooperative
Agreements with State or local governments, American Indian
Tribes, Alaska natives, native Hawaiians, and private-
nonprofit entities; or through loans to nonindustrial private
forest landowners. The Federal share of funding for
Cooperative Agreements and the loan program will come from
penalties that are being assessed against violators of the
Clean Air Act and the Clean Water Act (civil penalties
assessed in FY 1998 totaled $45 million).

section 1. short title

The title of the bill is the ``Forest Resources for the
Environment and the Economy Act''.

SECTION 2. FINDINGS AND PURPOSES

This section states the findings of the bill, including:
there is a need or additional information opportunities to
increase carbon

[[Page S4254]]

storage on public land through improvements in forest land
management; monitoring and verification of forest carbon
storage can provide employment opportunities for rural
communities; and the sustainable production of biomass energy
feedstocks provides a renewable source of energy that can
improve the energy security of the United States.
This section also states the purposes of the bill: to
increase carbon sequestration in forests; to provide
employment and income to rural communities; and to improve
the energy security of the United States by providing
opportunities for development of renewable biomass energy

section 3. definitions

This section defines terms used in the bill, including the
following: ``Carbon sequestration''; ``Forestry carbon
activity''; ``Forest carbon program''; ``Forest carbon
reservoir''; ``Forest carbon storage''; ``Forest land'';
``Forest management action''; ``Invasive species'';
``Nonindustrial private forest''; ``Reforestation''; and
``Revolving loan program''.

section 4. carbon management on federal land; carbon monitoring and
verification guidelines

This section amends Title XVI (``Global Climate Change'')
of the Energy Policy Act of 1992.
(a) Definitions: This subsection amends the Energy Policy
ACt to add the definitions for ``carbon
sequestration''``forest carbon storage,'' ``forest carbon
program,'' ``forest carbon reservoir,'' and ``forest
management action'' that were specified in Section 3.
(b) Carbon Management on Federal Land: This subsection
directs the Secretary of Agriculture to report to Congress on
the quantity of carbon contained in the forest carbon
reservoir in the national forest system. The report will
include an assessment of forest management actions that can
increase carbon storage on these national forest system
lands. Finally, the report will include an assessment of the
role of forests in the carbon cycle and the contributions of
forestry to the global carbon budget. This subsection is
accomplished by amendment to section 1604 of the Energy
Policy Act (``Assessment of Alternative Policy Mechanisms for
Addressing Greenhouse Gas Emissions'').
(c) Monitoring and Verification of Carbon Storage. This
subsection amends section 1605(b) of the Energy Policy Act
(``Voluntary Reporting''). It directs the Secretary of
Agriculture to review the existing Federal guidelines on
reporting, monitoring, and verification of carbon storage
from forest management actions and to make recommendations to
the Secretary of Energy for amendment of the guidelines.
Carbon and Forestry Advisory Council: This subsection also
directs the Secretary of Agriculture to establish a 16-
member, multi-stakeholder Carbon and Forestry Advisory
Council for the purpose of advising the Department of
Agriculture on: the development of the guidelines for
accurate voluntary reporting of greenhouse gas sequestration
from forest management actions, and for other purposes.
Criteria: The guidelines developed by the Secretary of
Agriculture must take account of additionality and leakage.
The guidelines must include recommended practices for
monitoring, measurement and verification of carbon storage
that are scientifically sound and cost-effective.
State Forest Carbon Programs: The guidelines will include
guidance to States for reporting, monitoring and verifying
carbon storage achieved under the carbon storage program
established in Section 5 of the bill.
Biomass energy projects: The guidelines will include
guidance on calculating net greenhouse gas reductions from
biomass energy projects.
Amendment of guidelines: The subsection directs the
Secretary of Energy to revise the existing voluntary
reporting guidelines to include the recommendations provided
by the Secretary of Agriculture.
Review of guidelines: Guidelines must be reviewed at least
every 24 months, and as necessary for consistency with any
future Federal laws that credit for reductions of atmospheric
greenhouse gas concentrations resulting from forest
management actions.
Monitoring of Forest Carbon Programs: Participants in the
Forest Carbon Program established in Section 5 of the bill
must report annually to the Secretary of Agriculture on the
results of the program. Reports that are certified to comply
with the guidelines in this section will be submitted to the
Department of Energy for inclusion in the 1605(b) voluntary
reporting data base.

section 5. forest carbon cooperative agreements and loan program

This section authorizes the Secretary of Agriculture to
enter into cooperative agreements and directs the Secretary
to provide assistance to States to establish revolving loan
funds to undertake forestry carbon activities.
(a) Forest Carbon Activity Cooperative Agreements. This
subsection authorizes the Secretary of Agriculture to enter
into cooperative agreements with willing State or local
governments, American Indian tribes, Alaska natives, native
Hawaiians, and private-nonprofit landowners for forest carbon
activities.
(b) Forest Carbon Activity Revolving Loan Program. This
subsection establishes a program to provide assistance
through State established revolving loan funds to
nonindustrial private forest land owners (NIPF) for eligible
forest carbon activities. Requirements include:
Eligibility: Funds may be used to support eligible forest
carbon activities on not more than 5,000 acres of an NIPF
landowners' holdings.
Loan terms: Loans must be repaid with interest at a rate
not to exceed a 3 percent real rate of return. They must be
repaid when the land is harvested, although the owner may pay
off the loan prior to harvesting. Loans must include a
transferable lien on all timber, forest products and biomass.
The State assumes the risk of loss of timber due to natural
disaster. A loan agreement must include recognition that,
until the loan is paid off, all reductions in atmospheric
greenhouse gases achieved by projects funded by the loan are
attributable to the entity that provides funding for the
loan.
Permanent conservation easements: Loan recipients can
cancel the loan by donating a permanent conservation
easement.
Reinvestment of funds: All repayments collected by a State
must be reinvested in the program and used by the State to
make additional loans.
Records: The State Forester shall maintain all loan records
and make them available to the public.
Matching funds: A State must match Federal funding by at
least 25% beginning in the second year of participating in
the program.
Loan Funding Distribution: The Secretary will report to
Congress on a formula under which Federal funds will be
distributed among eligible States. The distribution formula
will give priority to States that have experienced or are
expected to experience significant declines in employment
levels in the forestry industries due to declining timber
harvests on Federal land.
Private funding: A revolving loan fund may accept any funds
provided by nongovernmental organizations, businesses or
persons for the purpose of this Act.
Bonneville Power Administration (BPA): States served by BPA
(Washington, Oregon, Idaho and Montana) may apply for funding
from BPA for purposes of funding loans that meet both the
objectives of this Act and the fish and wildlife objectives
of BPA under current law.
(c) Requirements: This subsection specifies requirements of
any financial assistance arrangement for forest carbon
activities.
Eligibility: This gives a general definition of eligible
forestry carbon activities.
Guidance: The Forest Service, in collaboration with the
States, will provide guidance on eligible forestry carbon
activities.
Activities require under law: Funding shall not be provided
for activities required under existing laws.
Pre-agreements: Funding shall not be provided for costs
already incurred.
Limitation on land considered for funding: No funding shall
be provided for reforestation of land that has been
harvested, if the landowner received revenues from the
harvest sufficient to reforest the land.
Eligible tree species: Planted tress must be native or non-
invasive species.
Forest management plan: Priority shall be given to projects
on land under a forest management plan or forest stewardship
plan.
Use of funds: Funds shall be used for planting of trees and
their management.
Financial assistance amount: Cooperative agreements or
loans may cover up to 100 percent of total project costs, not
to exceed $100,000 during any 2-year period.
Authorization of appropriations: Authorizes funding from FY
2001 to FY 2010 at amounts equal to civil penalties collected
under the Clean Water Act and the Clean Air Act, which
currently revert to the Treasury as General Revenues. In
fiscal year 1998, $45 million in penalties were assessed.
Allocation of funds: The Secretary shall allocate 15
percent of available funds for cooperative agreements and the
remaining 85 percent for the State revolving loan fund.
______

By Mr. FRIST (for himself and Mr. Thompson):
S. 821. A bill to amend the Tennessee Valley Authority Act of 1933 to
modify provisions relating to the Board of Directors of the Tennessee
Valley Authority, and for other purposes; to the Committee on Energy
and Natural Resources.
Mr. FRIST. Mr. President, today I introduce the ``TVA Modernization
Act of 2001'' along with Senator Thompson. This bill would expand and
restructure TVA's Board of Directors to make it reflect the board
structure of most large corporations.
TVA is now a multi-billion dollar per year corporation. However, it
continues to function under a Depression-era administrative structure.
By expanding the board and restructuring it more like a corporation's
board, TVA will be in a better position to meet the future challenges
facing TVA and the energy industry as a whole.
Specifically, this legislation would create a nine-member, part-time
board made up of experts in corporate management and strategic decision
making. Each member would be required to be a legal resident of the TVA
service area, and each member would receive an annual stipend. The
board would appoint a CEO who would be responsible

[[Page S4255]]

for daily management decisions. Currently, the board is comprised of
three full-time members, although one position is currently vacant, and
the Chairman acts as the CEO.
This legislation provides the organizational structure necessary for
TVA's future. With proper leadership and sound management practices,
TVA can continue to improve and more efficiently provide its valuable
services.
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. 821

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

SECTION 1. CHANGE IN COMPOSITION, OPERATION, AND DUTIES OF
THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY
AUTHORITY.

(a) In General.--The Tennessee Valley Authority Act of 1933
(16 U.S.C. 831 et seq.) is amended by striking section 2 and
inserting the following:

``SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE BOARD OF
DIRECTORS.

``(a) Membership.--
``(1) Appointment.--The Board of Directors of the
Corporation (referred to in this Act as the `Board') shall be
composed of 9 members appointed by the President by and with
the advice and consent of the Senate, who shall be legal
residents of the service area.
``(2) Chairman.--The members of the Board shall select 1 of
the members to act as chairman of the Board.
``(b) Qualifications.--
``(1) In general.--To be eligible to be appointed as a
member of the Board, an individual--
``(A) shall be a citizen of the United States;
``(B) shall have widely recognized experience or applicable
expertise in the management of or decisionmaking for a large
corporate structure;
``(C) shall not be an employee of the Corporation;
``(D) shall have no substantial direct financial interest
in--
``(i) any public-utility corporation engaged in the
business of distributing and selling power to the public; or
``(ii) any business that may be adversely affected by the
success of the Corporation as a producer of electric power;
and
``(E) shall profess a belief in the feasibility and wisdom
of this Act.
``(2) Party affiliation.--Not more than 5 of the 9 members
of the Board may be affiliated with a single political party.
``(c) Recommendations.--In appointing members of the Board,
the President shall--
``(1) consider recommendations from such public officials
as--
``(A) the Governors of States in the service area;
``(B) individual citizens;
``(C) business, industrial, labor, electric power
distribution, environmental, civic, and service
organizations; and
``(D) the congressional delegations of the States in the
service area; and
``(2) seek qualified members from among persons who reflect
the diversity and needs of the service area of the
Corporation.
``(d) Terms.--
``(1) In general.--A member of the Board shall serve a term
of 5 years, except that in first making appointments after
the date of enactment of this paragraph, the President shall
appoint--
``(A) 2 members to a term of 2 years;
``(B) 1 member to a term of 3 years; and
``(C) 2 members to a term of 4 years.
``(2) Vacancies.--A member appointed to fill a vacancy in
the Board occurring before the expiration of the term for
which the predecessor of the member was appointed shall be
appointed for the remainder of that term.
``(3) Reappointment.--
``(A) In general.--A member of the Board that was appointed
for a full term may be reappointed for 1 additional term.
``(B) Appointment to fill vacancy.--For the purpose of
subparagraph (A), a member appointed to serve the remainder
of the term of a vacating member for a period of more than 2
years shall be considered to have been appointed for a full
term.
``(e) Quorum.--
``(1) In general.--Six members of the Board shall
constitute a quorum for the transaction of business.
``(2) Minimum number of members.--A vacancy in the Board
shall not impair the power of the Board to act, so long as
there are 6 members in office.
``(f) Compensation.--
``(1) In general.--A member of the Board shall be entitled
to receive--
``(A)(i) a stipend of $30,000 per year; plus
``(ii) compensation, not to exceed $10,000 for any year, at
a rate that does not exceed the daily equivalent of the
annual rate of basic pay prescribed under level V of the
Executive Schedule under section 5316 of title 5, United
States Code, for each day the member is engaged in the actual
performance of duties as a member of the Board at meetings or
hearings; and
``(B) travel expenses, including per diem in lieu of
subsistence, in the same manner as persons employed
intermittently in Government service under section 5703 of
title 5, United States Code.
``(2) Adjustments in stipends.--The amount of the stipend
under paragraph (1)(A)(i) shall be adjusted by the same
percentage, at the same time and manner, and subject to the
same limitations as are applicable to adjustments under
section 5318 of title 5, United States Code.
``(g) Duties.--
``(1) In general.--The Board shall--
``(A) establish the broad goals, objectives, and policies
of the Corporation that are appropriate to carry out this
Act;
``(B) develop long-range plans to guide the Corporation in
achieving the goals, objectives, and policies of the
Corporation and provide assistance to the chief executive
officer to achieve those goals, objectives, and policies,
including preparing the Corporation for fundamental changes
in the electric utilities industry;
``(C) ensure that those goals, objectives, and policies are
achieved;
``(D) approve an annual budget for the Corporation;
``(E) establish a compensation plan for employees of the
Corporation in accordance with subsection (i);
``(F) approve the salaries, benefits, and incentives for
managers and technical personnel that report directly to the
chief executive officer;
``(G) ensure that all activities of the Corporation are
carried out in compliance with applicable law;
``(H) create an audit committee, composed solely of Board
members independent of the management of the Corporation,
which shall--
``(i) recommend to the Board an external auditor;
``(ii) receive and review reports from the external
auditor; and
``(iii) make such recommendations to the Board as the audit
committee considers necessary;
``(I) create such other committees of Board members as the
Board considers to be appropriate;
``(J) conduct public hearings on issues that could have a
substantial effect on--
``(i) the electric ratepayers in the service area; or
``(ii) the economic, environmental, social, or physical
well-being of the people of the service area; and
``(K) establish the electricity rate schedule.
``(2) Meetings.--The Board shall meet at least 4 times each
year.
``(h) Chief Executive Officer.--
``(1) Appointment.--The Board shall appoint a person to
serve as chief executive officer of the Corporation.
``(2) Qualifications.--To serve as chief executive officer
of the Corporation, a person--
``(A) shall be a citizen of the United States;
``(B) shall have management experience in large, complex
organizations;
``(C) shall not be a current member of the Board or have
served as a member of the Board within 2 years before being
appointed chief executive officer; and
``(D) shall have no substantial direct financial interest
in--
``(i) any public-utility corporation engaged in the
business of distributing and selling power to the public; or
``(ii) any business that may be adversely affected by the
success of the Corporation as a producer of electric power;
and
``(3) Tenure.--The chief executive officer shall serve at
the pleasure of the Board.
``(i) Compensation Plan.--
``(1) In general.--The Board shall approve a compensation
plan that specifies salaries, benefits, and incentives for
the chief executive officer and employees of the Corporation.
``(2) Annual survey.--The compensation plan shall be based
on an annual survey of the prevailing salaries, benefits, and
incentives for similar work in private industry, including
engineering and electric utility companies, publicly owned
electric utilities, and Federal, State, and local
governments.
``(3) Considerations.--The compensation plan shall provide
that education, experience, level of responsibility,
geographic differences, and retention and recruitment needs
will be taken into account in determining salaries of
employees.
``(4) Submission to congress.--No salary shall be
established under a compensation plan until after the
compensation plan and the survey on which it is based have
been submitted to Congress and made available to the public
for a period of 30 days.
``(5) Positions at or below level iv.--The chief executive
officer shall determine the salary and benefits of employees
whose annual salary is not greater than the annual rate
payable for positions at level IV of the Executive
Schedule under section 5315 of title 5, United States
Code.
``(6) Positions above level iv.--On the recommendation of
the chief executive officer, the Board shall approve the
salaries of employees whose annual salaries would be in
excess of the annual rate payable for positions at level IV
of the Executive Schedule under section 5315 of title 5,
United States Code.''.
(b) Current Board Members.--A member of the board of
directors of the Tennessee Valley Authority who was appointed
before the effective date of the amendment made by subsection
(a)--
(1) shall continue to serve as a member until the date of
expiration of the member's current term; and

[[Page S4256]]

(2) may not be reappointed.

SEC. 2. CHANGE IN MANNER OF APPOINTMENT OF STAFF.

Section 3 of the Tennessee Valley Authority Act of 1933 (16
U.S.C. 831b) is amended--
(1) by striking the first undesignated paragraph and
inserting the following:
``(a) Appointment by the Chief Executive Officer.--The
chief executive officer shall appoint, with the advice and
consent of the Board, and without regard to the provisions of
the civil service laws applicable to officers and employees
of the United States, such managers, assistant managers,
officers, employees, attorneys, and agents as are necessary
for the transaction of the business of the Corporation.'';
and
(2) by striking ``All contracts'' and inserting the
following:
``(b) Wage Rates.--All contracts''.

SEC. 3. CONFORMING AMENDMENTS.

(a) The Tennessee Valley Authority Act of 1933 (16 U.S.C.
831 et seq.) is amended--
(1) by striking ``board of directors'' each place it
appears and inserting ``Board of Directors''; and
(2) by striking ``board'' each place it appears and
inserting ``Board''.
(b) Section 9 of the Tennessee Valley Authority Act of 1933
(16 U.S.C. 831h) is amended--
(1) by striking ``The Comptroller General of the United
States shall audit'' and inserting the following:
``(c) Audits.--The Comptroller General of the United States
shall audit''; and
(2) by striking ``The Corporation shall determine'' and
inserting the following:
``(d) Administrative Accounts and Business Documents.--The
Corporation shall determine''.

SEC. 4. EFFECTIVE DATE.

The amendments made by this Act take effect, and 7
additional members of the Board of the Tennessee Valley
Authority shall be appointed so as to commence their terms
on, May 18, 2002.
______

By Mrs. MURRAY (for herself, Mr. Smith of Oregon, Mr. Craig, Mr.
Daschle, and Mr. Leahy):
S. 822. A bill to amend the Internal Revenue Code of 1986 to modify
the treatment of bonds issues to acquire renewable resources on land
subject to conservation easement; to the Committee on Finance.
Mrs. MURRAY. Mr. President, I rise today to reintroduce the
``Community Forestry and Agriculture Conservation Act of 2001.''
Communities across the United States are losing private forest and
farmland to development. Many citizens are demanding that we protect
green space, control sprawl, and protect natural resources, fish and
wildlife.
Unfortunately, there are few options available to local communities
to protect these working green spaces. Federal, state or local
governments can purchase the land outright. But this is expensive, and
simply unworkable for larger tracts of forest and agricultural land.
Outright purchase also raises concerns about harming local economies,
reducing the tax base, and hurting private property rights.
Meanwhile, landowners are often land-rich and cash-poor. My bill
would allow landowners to capitalize some or all of their assets.
We have a responsibility to find solutions that protect private
forests and farm land, enhance economic prosperity, and bring
communities together in the process. The Community Forestry and
Agriculture Conservation Act would accomplish these goals.
The bill modifies the tax code to make it easier for communities to
issue tax-exempt revenue bonds on behalf of a private non-profit
corporation to purchase tracts of land. This protects the land from
development, while allowing jobs that depend on harvesting the land to
continue. The bonds would be serviced by harvesting the resources on
the land in a responsible, sustainable way.
I want to give an example of the concept behind this bill, and then
mention some of the benefits.
A group of community leaders would form a non-profit organization
with a diverse board of directors. The non-profit organization would
work with a landowner to reach a voluntary sale agreement at fair
market value. The non-profit organization would then develop a binding
management plan, which would allow for continued harvesting, but in a
manner that exceeds federal and state conservation standards.
A local government could then issue tax-exempt revenue bonds on
behalf of the non-profit organization to fund the acquisition of the
land. The bonds would be serviced by the non-profit organization with
revenue raised by the continued harvest of trees or crops in accordance
with the management plan. The non-profit would hold title to the land,
but an independent third party would monitor the permanent conservation
easement.
There are three benefits to this bill.
First, it gives communities a new tool to protect green spaces from
development. Second, communities are able to keep resource-based jobs
and their tax base. Third, this legislation will bring communities
together. It will move us away from the conflicts of the past and will
encourage environmentalists, timber companies, farmers, and local
governments to work together to maintain these green spaces.
This legislation is supported by a number of conservation
organizations, private companies, local governments, and private
associations, including: World Wildlife Fund; The Nature Conservancy;
Trust for Public Land; Land Trust Alliance; Pacific Forest Trust;
American Sportfishing Association; Plum Creek Timber Company; Collins
Pine Companies; Mendocino Redwood Company; The Harwood Group; Port
Blakely Tree Farms; Weyerhaeuser; The Campbell Group; King County,
Washington; Mendocino County, California; Society of American
Foresters; and the Political Economy Research Center.
In addition, the Senate agreed to a modified version of this
legislation as an amendment to the Senate version of H.R. 2488 in 1999.
The amendment was removed during conference.
As I did two years ago, I want to emphasize that this is an approach
that every Senator can support. It is bipartisan. It is inexpensive. It
is voluntary. It respects private property rights. It limits government
involvement but establishes proper enforcement to prevent abuse. It
protects the environment. It provides local control.
I would like to thank Senators G. Smith, Craig, Leahy, and Daschle
for cosponsoring this legislation, and I urge my other colleagues to
support it as well.
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. 822

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 Forestry and
Agriculture Conservation Act of 2001''.

SEC. 2. TREATMENT OF BONDS ISSUED TO ACQUIRE RENEWABLE
RESOURCES ON LAND SUBJECT TO CONSERVATION
EASEMENT.

(a) In General.--Section 145 of the Internal Revenue Code
of 1986 (defining qualified 501(c)(3) bond) is amended by
redesignating subsection (e) as subsection (f) and by
inserting after subsection (d) the following new subsection:
``(e) Bonds Issued To Acquire Renewable Resources on Land
Subject to Conservation Easement.--
``(1) In general.--If--
``(A) the proceeds of any bond are used to acquire land (or
a long-term lease thereof) together with any renewable
resource associated with the land (including standing timber,
agricultural crops, or water rights) from an unaffiliated
person,
``(B) the land is subject to a conservation restriction--
``(i) which is granted in perpetuity to an unaffiliated
person that is--

``(I) a 501(c)(3) organization, or
``(II) a Federal, State, or local government conservation
organization,

``(ii) which meets the requirements of clauses (ii) and
(iii)(II) of section 170(h)(4)(A),
``(iii) which exceeds the requirements of relevant
environmental and land use statutes and regulations, and
``(iv) which obligates the owner of the land to pay the
costs incurred by the holder of the conservation restriction
in monitoring compliance with such restriction,
``(C) a management plan which meets the requirements of the
statutes and regulations referred to in subparagraph (B)(iii)
is developed for the conservation of the renewable resources,
and
``(D) such bond would be a qualified 501(c)(3) bond (after
the application of paragraph (2)) but for the failure to use
revenues derived by the 501(c)(3) organization from the sale,
lease, or other use of such resource as otherwise required by
this part,

such bond shall not fail to be a qualified 501(c)(3) bond by
reason of the failure to so use such revenues if the revenues
which are not used as otherwise required by this part are
used in a manner consistent with the stated charitable
purposes of the 501(c)(3) organization.
``(2) Treatment of timber, etc.--
``(A) In general.--For purposes of subsection (a), the cost
of any renewable resource acquired with proceeds of any bond

[[Page S4257]]

described in paragraph (1) shall be treated as a cost of
acquiring the land associated with the renewable resource and
such land shall not be treated as used for a private business
use because of the sale or leasing of the renewable resource
to, or other use of the renewable resource by, an
unaffiliated person to the extent that such sale, leasing, or
other use does not constitute an unrelated trade or business,
determined by applying section 513(a).
``(B) Application of bond maturity limitation.--For
purposes of section 147(b), the cost of any land or renewable
resource acquired with proceeds of any bond described in
paragraph (1) shall have an economic life commensurate with
the economic and ecological feasibility of the financing of
such land or renewable resource.
``(C) Unaffiliated person.--For purposes of this
subsection, the term `unaffiliated person' means any person
who controls not more than 20 percent of the governing body
of another person.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to obligations issued after the date of the
enactment of this Act.
______

By Mr. ROCKEFELLER (for himself and Mr. Reed):
S. 827. A bill to amend the Social Security Act to guarantee
comprehensive health care coverage for all children born after 2001; to
the Committee on Finance.
Mr. ROCKEFELLER. Mr. President, it gives me great pleasure and pride
to introduce today the MediKids Health Insurance Act of 2001. I am
joined by my colleague Representative Stark, who is introducing
companion legislation in the House.
In 1997, we passed historic legislation which created the Children's
Health Insurance Program. I was a proud sponsor of the CHIP legislation
with our late-colleague Senator John Chafee. However, one thing which
we have learned throughout the implementation process of CHIP is that
while it provides a vehicle for insuring our nation's low-income
children, it does not guarantee all of America's children health
insurance coverage and access to affordable health care. I'm pleased to
say that of the 26,000 West Virginia children without health insurance
two years ago, according to the most recent state estimate nearly
20,000 have now enrolled in the CHIP program. But this is not enough.
We can do better for our children to make sure they can count on access
to the care they need to grow up healthy. It should not be so hard.
Today, there remain more than 10 million children in America without
health insurance, in spite of more and more children being enrolled in
CHIP every day. Clearly, there is still much more that can and should
be done to guarantee health coverage to all American children.
Today, I offer a solution to ensure that all of our nation's children
have access to health care. The MediKids program, which I propose,
would create a new Medicare-like program for children which is separate
from Medicare and will have no financial impact on the existing
program. Every child would be enrolled at birth, just as every American
is enrolled in the Medicare program at age 65. This ensures that all
children will have coverage, avoiding difficult problems related to
outreach and enrollment, or state-to-state variations. MediKids is a
simple, direct and comprehensive approach to dramatically improve the
health insurance safety net for America's Children. Eligibility for the
program would be phased in over five years, covering children from
birth to 5 years of age in the first year, 6 to 10 in the second, 11 to
15 in the third, 16 to 20 in the fourth, and 21 and 22 in the fifth and
final year. By 2008, the legislation would provide every child in
America access to consistent, continuous health insurance coverage.
The benefits covered by the program would be very similar to those
available to children under Medicaid now, including the screening and
prevention services so critical to successful childhood development.
The MediKids program would work in conjunction with CHIP and Medicaid,
allowing children enrolled in those programs, and those children with
private insurance coverage, to remain in those programs.
CHIP and Medicaid are important programs, and essential for the
insurance coverage of children. However, even with perfect enrollment
in CHIP and Medicaid, there would still be a great number of children
without health insurance. This is partially due to our increasingly
mobile society, where parents frequently change jobs and families often
move from state to state. When this occurs there is often a lapse in
health coverage. Also, families working their way out of welfare
fluctuate between eligibility and ineligibility for means-tested
assistance programs. Another reason for the number of uninsured
children is that the cost of health insurance continues to increase,
leaving many working parents unable to afford coverage for themselves
or their families. All of this adds up to the fact that many of our
children do not have the consistent and regular access to health care
which they need to grow up healthy.

Under The MediKids program, all children would be enrolled
automatically at birth, and have continuous, reliable health coverage
from birth until their twenty-third birthday. A prescription drug
benefit would be included as part of the program, and the Secretary of
Health and Human Services will continue to develop age-appropriate
benefits as needed. The legislation also contains provisions allowing
the Secretary to review and update the benefits offered annually, with
input from the pediatric community.
During the first few years of the program, the costs can be fully
covered by public funds such as tobacco settlement monies, the budget
surplus, or other funds upon which we may agree. Over this period of
time, the Treasury Secretary will have the necessary time to develop a
package of progressive, gradual tax changes to fund the program.
Parents will be responsible for a small premium which will account for
one-forth of annual average cost per child, and will be exempt from the
premium should they have comparable health coverage for their children
through private insurance or enrollment in other federal programs.
There will be no cost-sharing under the program for preventive and
well child care, and there will be assistance for low-income families
to meet their needs. Those families living at or below 150 percent of
poverty will pay no premium and those living between 150 percent and
200 percent of poverty will receive a 50 percent discount on premiums.
A family's premium obligation will be capped at 5 percent of its total
income.
Children are inexpensive to insure, yet the benefits of doing so
would be enormous for our country. We have an opportunity now to
guarantee that future generations of children grow up more healthy and
ready to succeed than any before them. I am pleased to announce that I
am joined today by a number of organizations whose support has been
critical to the cause of ensuring health coverage for all children. I
thank the many national organizations that have already lent their
support and endorsement to this important legislation. The American
Academy Pediatrics and the Children's Defense Fund have already begun
to actively push for the MediKids Health Insurance Act of 2001. I am so
pleased to have the support of these and other organizations which have
dedicated themselves to children and children's health care in America.
I learned a valuable lesson some thirty-five years ago as a VISTA
volunteer in the small town of Emmons, West Virginia. I was taught that
health care is not just something to be talked about, or debated here
on the floor of the Senate. Health care is a fundamental right, its as
necessary as food and shelter. I have learned this time and time again,
and I have carried that lesson with me throughout my entire life in
public service, as Chairman of the Pepper Commission on Comprehensive
Health Care, and also on the National Commission on Children.
The growing number of uninsured in this country is a very serious
problem. The fact that some 10 million children, our nation's most
vulnerable population, do not have access to affordable health
insurance today is not just unfair, it is downright immoral. In a
nation as wealthy as ours, it is wrong that poverty at birth can mean
life-long illness or even early death, especially from easily treatable
and preventable causes. What's more, children are the cheapest
population in America to insure.
But as I have said time and time again, I also believe it is
important to not lose sight of the ideal, and our capacity to reach
that ideal, of the United States of America joining every

[[Page S4258]]

other industrialized nation by ensuring that its citizens have basic
health insurance.
I believe that we must not lose sight of that great ideal which I
have spoken about here today, that every American have access to
affordable health care. The MediKids Health Insurance Act is a tangible
step toward achieving that ideal. I offer this legislation to enlist my
colleagues in an effort to insist that all of our nation's children are
insured as quickly as possible. I ask my colleagues from both sides of
the aisle to join as co-sponsors.
I ask unanimous consent that the text of the bill and a summary be
printed in the Record.
There being no objection, the material ordered to be printed in the
Record, as follows:

S. 827

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

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

(a) Short Title.--This Act may be cited as the ``MediKids
Health Insurance Act of 2002''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents; findings.
Sec. 2. Benefits for all children born after 2002.

``TITLE XXII--MEDIKIDS PROGRAM

``Sec. 2201. Eligibility.
``Sec. 2202. Benefits.
``Sec. 2203. Premiums.
``Sec. 2204. MediKids Trust Fund.
``Sec. 2205. Oversight and accountability.
``Sec. 2206. Addition of care coordination services.
``Sec. 2207. Administration and miscellaneous.
Sec. 3. MediKids premium.
Sec. 4. Refundable credit for cost-sharing expenses under MediKids
program.
Sec. 5. Report on long-term revenues.

(c) Findings.--Congress finds the following:
(1) More than 11 million American children are uninsured.
(2) Children who are uninsured receive less medical care
and less preventive care and have a poorer level of health,
which result in lifetime costs to themselves and to the
entire American economy.
(3) Although SCHIP and Medicaid are successfully extending
a health coverage safety net to a growing portion of the
vulnerable low-income population of uninsured children, we
now see that they alone cannot achieve 100 percent health
insurance coverage for our nation's children due to
inevitable gaps during outreach and enrollment, fluctuations
in eligibility, and variations in access to private insurance
at all income levels.
(4) As all segments of our society continue to become more
and more transient, with many changes in employment over the
working lifetime of parents, the need for a reliable safety
net of health insurance which follows children across State
lines, already a major problem for the children of migrant
and seasonal farmworkers, will become a major concern for all
families in the United States.
(5) The Medicare program has successfully evolved over the
years to provide a stable, universal source of health
insurance for the nation's disabled and those over age 65,
and therefore provides a tested model for designing a program
to reach out to America's children
(6) The problem of insuring 100 percent of all American
children could be gradually solved by automatically enrolling
all children born after December 31, 2002, in a program
modeled after Medicare (and to be known as ``MediKids''), and
allowing those children to be transferred into other
equivalent or better insurance programs, including either
private insurance, SCHIP, or Medicaid, if they are eligible
to do so, but maintaining the child's default enrollment in
MediKids for any times when the child's access to other
sources of insurance is lost.
(7) A family's freedom of choice to use other insurers to
cover children would not be interfered with in any way, and
children eligible for SCHIP and Medicaid would continue to be
enrolled in those programs, but the underlying safety net of
MediKids would always be available to cover any gaps in
insurance due to changes in medical condition, employment,
income, or marital status, or other changes affecting a
child's access to alternate forms of insurance.
(8) The MediKids program can be administered without
impacting the finances or status of the existing Medicare
program.
(9) The MediKids benefit package can be tailored to the
special needs of children and updated over time.
(10) The financing of the program can be administered
without difficulty by a yearly payment of affordable premiums
through a family's tax filing (or adjustment of a family's
earned income tax credit).
(11) The cost of the program will gradually rise as the
number of children using MediKids as the insurer of last
resort increases, and a future Congress always can accelerate
or slow down the enrollment process as desired, while the
societal costs for emergency room usage, lost productivity
and work days, and poor health status for the next generation
of Americans will decline.
(12) Over time 100 percent of American children will always
have basic health insurance, and we can therefore expect a
healthier, more equitable, and more productive society.

SEC. 2. BENEFITS FOR ALL CHILDREN BORN AFTER 2002.

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

``TITLE XXII--MEDIKIDS PROGRAM

``SEC. 2201. ELIGIBILITY.

``(a) Eligibility of Individuals Born After December 31,
2002; All Children under 23 Years of Age in Sixth Year.--An
individual who meets the following requirements with respect
to a month is eligible to enroll under this title with
respect to such month:
``(1) Age.--
``(A) First year.--During the first year in which this
title is effective, the individual has not attained 6 years
of age.
``(B) Second year.--During the second year in which this
title is effective, the individual has not attained 11 years
of age.
``(C) Third year.--During the third year in which this
title is effective, the individual has not attained 16 years
of age.
``(D) Fourth year.--During the fourth year in which this
title is effective, the individual has not attained 21 years
of age.
``(E) Fifth and subsequent years.--During the fifth year in
which this title is effective and each subsequent year, the
individual has not attained 23 years of age.
``(2) Citizenship.--The individual is a citizen or national
of the United States or is permanently residing in the United
States under color of law.
``(b) Enrollment Process.--An individual may enroll in the
program established under this title only in such manner and
form as may be prescribed by regulations, and only during an
enrollment period prescribed by the Secretary consistent with
the provisions of this section. Such regulations shall
provide a process under which--
``(1) individuals who are born in the United States after
December 31, 2002, are deemed to be enrolled at the time of
birth and a parent or guardian of such an individual is
permitted to pre-enroll in the month prior to the expected
month of birth;
``(2) individuals who are born outside the United States
after such date and who become eligible to enroll by virtue
of immigration into (or an adjustment of immigration status
in) the United States are deemed enrolled at the time of
entry or adjustment of status;
``(3) eligible individuals may otherwise be enrolled at
such other times and manner as the Secretary shall specify,
including the use of outstationed eligibility sites as
described in section 1902(a)(55)(A) and the use of
presumptive eligibility provisions like those described in
section 1920A; and
``(4) at the time of automatic enrollment of a child, the
Secretary provides for issuance to a parent or custodian of
the individual a card evidencing coverage under this title
and for a description of such coverage.
The provisions of section 1837(h) apply with respect to
enrollment under this title in the same manner as they apply
to enrollment under part B of title XVIII.
``(c) Date Coverage Begins.--
``(1) In general.--The period during which an individual is
entitled to benefits under this title shall begin as follows,
but in no case earlier than January 1, 2003:
``(A) In the case of an individual who is enrolled under
paragraph (1) or (2) of subsection (b), the date of birth or
date of obtaining appropriate citizenship or immigration
status, as the case may be.
``(B) In the case of an another individual who enrolls
(including pre-enrolls) before the month in which the
individual satisfies eligibility for enrollment under
subsection (a), the first day of such month of eligibility.
``(C) In the case of an another individual who enrolls
during or after the month in which the individual first
satisfies eligibility for enrollment under such subsection,
the first day of the following month.
``(2) Authority to provide for partial months of
coverage.--Under regulations, the Secretary may, in the
Secretary's discretion, provide for coverage periods that
include portions of a month in order to avoid lapses of
coverage.
``(3) Limitation on payments.--No payments may be made
under this title with respect to the expenses of an
individual enrolled under this title unless such expenses
were incurred by such individual during a period which, with
respect to the individual, is a coverage period under this
section.
``(d) Expiration of Eligibility.--An individual's coverage
period under this part shall continue until the individual's
enrollment has been terminated because the individual no
longer meets the requirements of subsection (a) (whether
because of age or change in immigration status).
``(e) Entitlement to MediKids Benefits For Enrolled
Individuals.--An individual enrolled under this section is
entitled to the benefits described in section 2202.
``(f) Low-Income Information.--At the time of enrollment of
a child under this title, the Secretary shall make an inquiry
as to whether or not the family income of the family that
includes the child is less than 150 percent of the poverty
line for a family of the size involved. If the family income
is

[[Page S4259]]

below such level, the Secretary shall encode in the
identification card issued in connection with eligibility
under this title a code indicating such fact. The Secretary
also shall provide for a toll-free telephone line at which
providers can verify whether or not such a child is in a
family the income of which is below such level.
``(g) Construction.--Nothing in this title shall be
construed as requiring (or preventing) an individual who is
enrolled under this section from seeking medical assistance
under a State medicaid plan under title XIX or child health
assistance under a State child health plan under title XXI.

``SEC. 2202. BENEFITS.

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

``SEC. 2203. PREMIUMS.

``(a) Amount of Monthly Premiums.--
``(1) In general.--The Secretary shall, during September of
each year (beginning with 2002), establish a monthly MediKids
premium. Subject to paragraph (2), the monthly MediKids
premium for a year is equal to \1/12\ of the annual premium
rate computed under subsection (b).
``(2) Elimination of monthly premium for demonstration of
equivalent coverage (including coverage under low-income
programs).--The amount of the monthly premium imposed under
this section for an individual for a month shall be zero in
the case of an individual who demonstrates to the
satisfaction of the Secretary that the individual has basic
health insurance coverage for that month. For purposes of the
previous sentence enrollment in a medicaid plan under title
XIX, a State child health insurance plan under title XXI, or
under the medicare program under title XVIII is deemed to
constitute basic health insurance coverage described in such
sentence.
``(b) Annual Premium.--
``(1) National, per capita average.--The Secretary shall
estimate the average, annual per capita amount that would be
payable under this title with respect to individuals residing
in the United States who meet the requirement of section
2201(a)(1) as if all such individuals were eligible for (and
enrolled) under this title during the entire year (and
assuming that section 1862(b)(2)(A)(i) did not apply).
``(2) Annual premium.--Subject to subsection (d), the
annual premium under this subsection for months in a year is
equal to 25 percent of the average, annual per capita amount
estimated under paragraph (1) for the year.
``(c) Payment of Monthly Premium.--
``(1) Period of payment.--In the case of an individual who
participates in the program established by this title,
subject to subsection (d), the monthly premium shall be
payable for the period commencing with the first month of the
individual's coverage period and ending with the month in
which the individual's coverage under this title terminates.
``(2) Collection through tax return.--For provisions
providing for the payment of monthly premiums under this
subsection, see section 59B of the Internal Revenue Code of
1986.
``(3) Protections against fraud and abuse.--The Secretary
shall develop, in coordination with States and other health
insurance issuers, administrative systems to ensure that
claims which are submitted to more than one payor are
coordinated and duplicate payments are not made.
``(d) Reduction in Premium for Certain Low-Income
Families.--For provisions reducing the premium under this
section for certain low-income families, see section 59B(c)
of the Internal Revenue Code of 1986.

``SEC. 2204. MEDIKIDS TRUST FUND.

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

``SEC. 2205. OVERSIGHT AND ACCOUNTABILITY.

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

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

``(a) In General.--
``(1) Program authority.--The Secretary, beginning in 2003,
may implement a care coordination services program in
accordance with the provisions of this section under which,
in appropriate circumstances, eligible individuals may elect
to have health care services covered under this title managed
and coordinated by a designated care coordinator.
``(2) Administration by contract.--The Secretary may
administer the program under this section through a contract
with an appropriate program administrator.
``(3) Coverage.--Care coordination services furnished in
accordance with this section shall be treated under this
title as if they were included in the definition of medical

[[Page S4260]]

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

``SEC. 2207. ADMINISTRATION AND MISCELLANEOUS.

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

[[Page S4261]]

(2) Initial terms of additional members.--
(A) In general.--For purposes of staggering the initial
terms of members of the Medicare Payment Advisory Commission
under section 1805(c)(3) of the Social Security Act (42
U.S.C. 1395b-6(c)(3)), the initial terms of the 2 additional
members of the Commission provided for by the amendment under
subsection (a)(1) are as follows:
(i) One member shall be appointed for 1 year.
(ii) One member shall be appointed for 2 years.
(B) Commencement of terms.--Such terms shall begin on
January 1, 2002.

SEC. 3. MEDIKIDS PREMIUM.

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

``PART VIII--MEDIKIDS PREMIUM

``Sec. 59B. MediKids premium.

``SEC. 59B. MEDIKIDS PREMIUM.

``(a) Imposition of Tax.--In the case of an individual to
whom this section applies, there is hereby imposed (in
addition to any other tax imposed by this subtitle) a
MediKids premium for the taxable year.
``(b) Individuals Subject to Premium.--
``(1) In general.--This section shall apply to an
individual if the taxpayer has a MediKid at any time during
the taxable year.
``(2) MediKid.--For purposes of this section, the term
`MediKid' means, with respect to a taxpayer, any individual
with respect to whom the taxpayer is required to pay a
premium under section 2203(c) of the Social Security Act for
any month of the taxable year.
``(c) Amount of Premium.--For purposes of this section, the
MediKids premium for a taxable year is the sum of the monthly
premiums under section 2203 of the Social Security Act for
months in the taxable year.
``(d) Exceptions Based on Adjusted Gross Income.--
``(1) Exemption for very low-income taxpayers.--
``(A) In general.--No premium shall be imposed by this
section on any taxpayer having an adjusted gross income not
in excess of the exemption amount.
``(B) Exemption amount.--For purposes of this paragraph,
the exemption amount is--
``(i) $17,415 in the case of a taxpayer having 1 MediKid,
``(ii) $21,945 in the case of a taxpayer having 2 MediKids,
``(iii) $26,475 in the case of a taxpayer having 3
MediKids, and
``(iv) $31,005 in the case of a taxpayer having 4 or more
MediKids.
``(C) Phaseout of exemption.--In the case of a taxpayer
having an adjusted gross income which exceeds the exemption
amount but does not exceed twice the exemption amount, the
premium shall be the amount which bears the same ratio to the
premium which would (but for this subparagraph) apply to the
taxpayer as such excess bears to the exemption amount.
``(D) Inflation adjustment of exemption amounts.--In the
case of any taxable year beginning in a calendar year after
2001, each dollar amount contained in subparagraph (C) shall
be increased by an amount equal to the product of--
``(i) such dollar amount, and
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 2000'
for `calendar year 1992' in subparagraph (B) thereof.
If any increase determined under the preceding sentence is
not a multiple of $50, such increase shall be rounded to the
nearest multiple of $50.
``(2) Premium limited to 5 percent of adjusted gross
income.--In no event shall any taxpayer be required to pay a
premium under this section in excess of an amount equal to 5
percent of the taxpayer's adjusted gross income.
``(e) Coordination With Other Provisions.--
``(1) Not treated as medical expense.--For purposes of this
chapter, any premium paid under this section shall not be
treated as expense for medical care.
``(2) Not treated as tax for certain purposes.--The premium
paid under this section shall not be treated as a tax imposed
by this chapter for purposes of determining--
``(A) the amount of any credit allowable under this
chapter, or
``(B) the amount of the minimum tax imposed by section 55.
``(3) Treatment under subtitle f.--For purposes of subtitle
F, the premium paid under this section shall be treated as if
it were a tax imposed by section 1.''.
(b) Technical Amendments.--
(1) Subsection (a) of section 6012 of such Code is amended
by inserting after paragraph (9) the following new paragraph:
``(10) Every individual liable for a premium under section
59B.''.
(2) The table of parts for subchapter A of chapter 1 of
such Code is amended by adding at the end the following new
item:

``Part VIII. MediKids premium.''.

(c) Effective Date.--The amendments made by this section
shall apply to months beginning after December 2002, in
taxable years ending after such date.

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

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

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

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

``Sec. 35. Cost-sharing expenses under MediKids program.
``Sec. 36. Overpayments of tax.''.

SEC. 5. REPORT ON LONG-TERM REVENUES.

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

Summary of the MediKids Health Insurance Act of 2001

The MediKids Health Insurance Act provides health insurance
for all children in the United States regardless of family
income level by 2008. The program is modeled after Medicare,
but the benefits are targeted toward children. Families below
150 percent of poverty pay no premium or copays, while those
between 150 and 300 percent of poverty pay a graduated
premium up to 5 percent of their income and receive a
graduated refundable tax credit for cost sharing expenses.
The MediKids enrollment process is simple with no re-
determination hoops to jump through because it is not means
tested. MediKids follows children across state lines when
families move, and covers them until their parents can enroll
them in a new insurance program. Moreover, MediKids fills the
gaps when families climbing out of poverty become ineligible
for means-tested programs. It provides security for children
until their parents can obtain reliable health insurance
coverage.

enrollment

Every child born after 2002 is automatically enrolled in
MediKids, and those children already born are enrolled over a
5-year phase-in as described below. Children who immigrate to
this country are enrolled when they receive their immigration
cards. Materials describing the program's benefits, along
with a MediKids insurance card, are issued to the parent(s)
or legal guardian(s) of each child. Once enrolled, children
remain enrolled in MediKids until they reach the age of 23.
Parents may choose to enroll their children in private
plans or government programs such as Medicaid or S-CHIP.
During periods of equivalent alternative coverage, the
MediKids premium is waived. However, if a lapse in other
insurance coverage occurs, MediKids automatically covers the
children's health insurance needs (and a premium will be owed
for those months).

phase-in

Year 1 (2003) = the child has not attained age 6.
Year 2 (2004) = the child has not attained age 11.
Year 3 (2005) = the child has not attained age 16
Year 4 (2006) = the child has not attained age 21.
Year 5 (2007) = the child has not attained age 23.

benefits

The benefit package is based on the Medicare and the
Medicaid Early and Periodic Screening. Diagnosis, and
Treatment (EPSDT) benefits for children, and includes
prescription drugs. The benefits will be reviewed annually
and updated by the Secretary of Health and Human Services to
reflect age-appropriate benefits as needed with input from
the pediatric community.

premiums, deductibles, and copays

Families up to 150 percent of poverty pay no premiums or
copays. Families between 150 and 300 percent of poverty pay a
graduated premium up to 5 percent of their income and

[[Page S4262]]

receive a graduated refundable tax credit for cost sharing
expenses. Parents 300 percent of poverty are responsible for
a small premium equal to one fourth of the average annual
cost per child. Premiums are collected at the time of income
tax filing. There is no cost sharing for preventive and well
childcare for any children.

financing

Congress would need to determine initial funding. In future
years, the Secretary of Treasury would develop a package of
progressive, gradual tax changes to fund the program, as the
number of enrollees grows.

states

Medicaid and S-CHIP are not altered by MediKids. These
programs remain the safety net for children until MediKids is
fully implemented and appropriately modified to best serve
our nation's children. Once MediKids is fully operational,
Congress can revisit the role of these programs in covering
children.
To the extent that the states save money from the
enrollment of children into MediKids, states are required to
maintain those funding levels in other programs and services
directed toward the Medicaid population. This can include
expanding eligibility or offering additional services. For
example, states could expand eligibility for parents and
single individuals, increase payment rates to providers, or
enhance quality initiatives in nursing homes.
______

By Mr. LIEBERMAN (for himself, Ms. Snowe, Mr. Schumer, Mr.
Hutchinson, Mr. Dodd, Mrs. Clinton, Ms. Cantwell, Mr. Carper,
Mr. Dorgan, Mr. Leahy, Mr. Levin, Mr. Harkin, Mr. Akaka, and
Ms. Mikulski):
S. 828. A bill to amend the Internal Revenue Code of 1986 to allow a
credit against income tax for certain energy-efficient property; to the
Committee on Finance.
Mr. LIEBERMAN. Mr. President, I am pleased today to join a bipartisan
coalition of Senators in introducing environmentally friendly
legislation to encourage the use of fuel cells, a clean and cutting-
edge energy source. If adopted, this bill would provide tax incentives
to consumers for purchasing residential and commercial fuel cell
systems to power their electricity. The $1,000-per-kilowatt tax credit
applies to all types of stationary fuel cell systems and would be
applicable for 5 years. This is a Senate companion piece to legislation
introduced in the House of Representatives by Representative Nancy
Johnson last month.
With oil and gas prices now reaching record highs, I believe fuel
cells are one excellent answer to our heightened energy demand and
dependence on foreign oil. The benefits of fuel cell technology are
many. They are a nearly pollution-free power supply because they
operate without combustion; they can run on any hydrogen-rich source,
including propane, natural gas, methane or diesel; they can operate
independently of a power grid, which is ideal for remote locations, and
they provide highly reliable, uninterrupted power, making them very
attractive for applications highly sensitive to power interruptions.
Currently they are being used at a variety of locations, including a
New York City police station in Central Park, a major postal facility
in Alaska, a hotel on Mohegan tribal lands in Connecticut, and in a
hospital in California.
Fuel cells have been successfully used since the 1960s. Initially
they were developed for space applications and have provided all of the
water and electricity needs in every manned U.S. space mission,
including the Apollo and Gemini spacecraft. Since this time, they have
been developed for a wide variety of other applications, including
commercial, residential, and transportation uses.
I am pleased to join Senators Snowe, Schumer, Dodd, Hutchinson,
Clinton, Cantwell, Carper, Dorgan, Leahy, Levin, Harkin, Akaka, and
Mikulski on this important bill.
Ms. SNOWE. Mr. President, I rise today with my colleague from
Connecticut Senator Lieberman, to introduce a bill that will promote
the expanded use of an environmentally sound and efficient energy
technology, fuel cell power.
We all agree with President Bush that we have a crisis situation,
America's energy future is bleak. Portions of our country are
experiencing rolling blackouts, fuel prices are skyrocketing, America's
dependence on imported oil reached a new high of over 60 percent in
recent months, and our search for additional fossil fuels threatens the
sanctity of protected wilderness areas. Now is the time to promote long
term solutions such as fuel cell technology to reduce our fossil fuel
consumption and maintain a steady supply of energy.
Fuel cells are not a futuristic dream, every manned U.S. space
mission has relied upon fuel cells for electricity and drinking water.
From a New York city police station to a postal facility in Alaska to
hospitals, schools, banks, military installations, and manufacturing
facilities around the world, fuel cell units are efficiently generating
dependable power 24 hours a day, seven days a week for upwards of 5
years with only routine maintenance.
Fuel cell technology offers a clean, secure, efficient, and
dependable source of energy that should be part of our national energy
strategy. Not only do fuel cells deliver the high quality, reliable
power that is considered an absolute necessity for many portions of our
society, they reduce power grid demand while improving grid
flexibility. Fuel cells are an ideal energy source to address America's
pressing energy needs.
Using an electro-chemical reaction to convert energy from hydrogen-
rich fuel sources into electricity, fuel cells reduce the need for
fossil fuel consumption. And, since no combustion is involved, fuel
cells produce virtually no air pollution and significantly reduce
carbon dioxide emissions. In fact, a 200 kilowatt fuel cell power plant
produces less than one ounce of pollutants for every 1,000 kilowatt
hours of electricity it yields. In comparison, the average American
fossil fuel plant produces nearly 25 pounds of pollutants to generate
the same 1,000 kilowatt hours of electricity. That is 400 times the
amount of the fuel cell power plant.
However, it is difficult for consumers to take advantage of fuel
cells because as with any new technology, the introductory price is
high. To create the market incentives necessary to speed the
commercialization of this technology, our legislation provides a $1,000
per kilowatt stationary fuel cell tax credit for power plants that have
an electrical generation efficiency of 30 percent or higher.
By lowering the initial price for consumers, market introduction and
production volume of fuel cells will be accelerated with the end result
being a significant reduction in manufacturing costs. The decrease in
price would enable even more consumers to use the one of the cleanest,
most reliable and most efficient means to generate electricity.

This fuel cell tax credit is designed to benefit the widest range of
potential fuel cell customers and manufacturers with a meaningful
incentive for the purchase of fuel cells for residential and commercial
use while minimizing the budget impact to $500 million over the 5-year
life of the program. I hope my colleagues will agree that an annual
cost of $100 million is a small price to pay for a reliable source of
power that will benefit the environment and reduce our nation's
dependence on foreign oil supplies.
At a time when power shortages and interruptions are becoming more
prevalent, we must increase our investment and commitment to non-
traditional energy sources such as fuel cells. The reliable,
combustion-free power fuel cells provide is a sensible alternative that
is available today. I urge my colleagues to support us in the Fuel Cell
Tax Credit.
______

By Mr. BROWNBACK (for himself, Mr. Cleland, Mr. Santorum, Mr.
Lott, Mrs. Clinton, Mr. Reid, Mr. Dodd, Mr. Miller, and Mr.
Edwards):
S. 829. A bill to establish the National Museum of African American
History and Culture within the Smithsonian Institution; to the
Committee on Rules and Administration.
Mr. BROWNBACK. Mr. President, I am honored to introduce legislation,
today, that creates the ``National Museum of African American History
and Culture.'' I along with Senators Max Cleland, Rich Santorum,
Majority Leader Lott, Hillary Clinton, Harry Reid, Christopher Dodd,
Zell Miller, and John Edwards are committed to passing this legislation
this year.
One of the most important chapters in our national story of human
freedom and dignity is the history and legacy of the African American
march toward freedom, legal equality and full participation in American
Society. Yet in our

[[Page S4263]]

nation's front yard, the National Mall, there is no museum set aside to
honor this legacy.
As a Kansan, I feel a special connection to honoring the legacy of
African-Americans. Kansas, as you know, not only played a significant
role in the Civil War but also was chosen by many African-American
families as a place to began their new life of freedom and prosperity
in the ``Exodus to Kansas.''
This is just one part of the incredible history of African Americans
that must be told on a national level. We have over 200 wonderful
African-American history museums across the nation that tell portions
of the African-American story. However, this legacy must be showcased
at a national level.
That is why I am here today with my colleagues introducing this
legislation to create the National Museum of African-American history
and culture within the Smithsonian Institution, a premier organization,
which represents the best museums in the nation. We believe it is
vitally important that the Smithsonian, the world's leading museum
organization, provide its expertise in putting this facility and its
programs together.
This project has brought together a very broad and bicameral
coalition that stood with us today during the press conference to
announce the introduction of this bill. I would like to personally
thank Pastor Chuck Singleton, of Loveland Church in California, as well
as Robert Johnson, of B.E.T., Dorothy Height of the National Council of
Negro Women, and Phyllis Berry Myers, of the Center for New Black
Leadership for joining with us to support this legislation today.
We do not pretend that our legislation is a cure-all for the problem
of racial division. It is, however, an important and productive step
toward healing our nation's racial wounds. I believe that this museum
will both celebrate African-American achievement and serve as a
landmark of national conscience on the historical facts of slavery and
the civil rights struggle.
We have an extraordinary opportunity before us--a chance to learn,
understand and remember together our nation's history and to honor the
significant contribution of African Americans to our history and
culture.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 829

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Museum of African
American History and Culture Act of 2001''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) Over the history of our Nation, the United States has
grown into a symbol of democracy and freedom around the
world, and the legacy of African Americans is rooted in the
very fabric of our Nation's democracy and freedom.
(2) There exists no national museum within the Smithsonian
Institution located on the National Mall that is devoted to
the documentation of African American life, art, history, and
culture and that encompasses on a national level, the period
of slavery, the era of reconstruction, the Harlem
renaissance, the civil rights movement, and beyond.
(3) Slavery was an accepted practice in this Nation,
authorized by the Government through legislation such as the
fugitive slave law of 1793 (1 Stat. 302) and sanctioned by
the Supreme Court in the Dred Scott decision (Scott v.
Sanford, 60 U.S. 393 (1857)).
(4) Those African Americans who suffered under slavery and
their descendants show us the strength of the human character
and provide us with a model of courage, commitment, and
perseverance. A national museum dedicated to the history of
and commemorating those who suffered the grave injustice of
slavery in this country will help in ``binding our Nation's
wounds'' rooted in slavery and will allow all Americans to
understand the past and honor the history of all Americans.
(5) Leaders of the African American community in the 1950s
and 1960s led this Nation in the civil rights movement with
the intent of ending discrimination against African
Americans. During this period, many African American churches
were destroyed and countless individuals involved in this
movement were often beaten and killed. Through the devotion
and sacrifice of those leaders, the civil rights movement
made great strides in ensuring equality for African Americans
in this country.
(6) African Americans have enriched the cultural make-up of
the United States by their contributions in the areas of
science, medicine, the arts and humanities, sports, music,
and dance.
(7) Preserving this rich record of the experiences of
African Americans, studying their experiences, and presenting
those experiences through exhibits to the public would be of
great educational and social value.
(8) The creation of a National Museum of African American
History and Culture located on the National Mall in the
District of Columbia and administered by the Smithsonian
Institution's Board of Regents was endorsed in 1991 by a
unanimous vote by the Smithsonian Institution's Board of
Regents.
(9) The Smithsonian African American Institutional Study
recommended that the National Museum of African American
History and Culture be established in the Arts and Industries
Building of the Smithsonian Institution.
(10) Although the Smithsonian Institution has had some
success in focusing on African American history and culture,
the programming on African American history and culture has
been occasional and episodic.
(11) A National Museum of African American History and
Culture will provide a continued and consistent African
American presence on the National Mall.
(12) The National Museum of African American History and
Culture will be dedicated to the collection, preservation,
research, and exhibition of African American historical and
cultural material reflecting the breadth and depth of the
experiences of persons of African descent living in the
United States.
(13) The National Museum of African American History and
Culture established by this Act will coordinate the
collection of material related to African Americans, which is
rapidly disappearing due to a lack of resources and trained
professionals engaged in preservation.
(14) The work of the National Museum of African American
History and Culture will be, fundamentally, the same as the
work of all museums in the United States that reflect and
express the experiences of the people of the United States in
an inclusive manner.

SEC. 3. ESTABLISHMENT OF THE NATIONAL MUSEUM OF AFRICAN
AMERICAN HISTORY AND CULTURE.

(a) Establishment.--There is established within the
Smithsonian Institution the National Museum of African
American History and Culture (hereafter referred to in this
Act as the ``Museum''), and the Smithsonian Institution shall
maintain and administer the Museum.
(b) Purpose.--The purpose of the Museum is to provide for--
(1) the collection, study, and creation of scholarship
relating to the African American diaspora that encompasses
slavery, the era of reconstruction, the Harlem renaissance,
the civil rights movement, and beyond;
(2) the creation and maintenance of permanent and temporary
exhibits documenting American slavery and African American
life, art, history, and culture from slavery and the era of
reconstruction to the Harlem renaissance, the civil rights
movement, and beyond;
(3) the collection and study of artifacts and documents
relating to African American life, art, history, and culture
and the African diaspora;
(4) the establishment of programs in cooperation with other
museums, historical societies, educational institutions, and
other organizations that promote the understanding of modern
day practices of slavery throughout the world;
(5) collaboration between the Museum and other African
American museums, historically black colleges and
universities, and other museums, historical societies,
educational institutions, and other organizations that
promote the study of the African diaspora including
collaboration regarding--
(A) development of cooperative programs and exhibitions;
(B) identification, management, and care of collections;
and
(C) participation in the training of museum professionals;
and
(6) leadership and commitment to historical accuracy in the
study, education, and exhibition of African American life,
art, history, and culture in the museum and throughout the
Nation.

SEC. 4. COUNCIL.

(a) Establishment.--There is established in the Smithsonian
Institution the National Museum of African American History
and Culture Council (hereinafter referred to in this Act as
the ``Council'').
(b) Duties.--
(1) In general.--The Council, subject to subsection (l) and
to the general policies of the Board of Regents of the
Smithsonian Institution (hereafter referred to in this Act as
the ``Board of Regents''), shall have sole authority to--
(A) solicit, accept, use, and dispose of gifts, bequests,
and devises of services and property, both real and personal,
for the purpose of aiding and facilitating the work of the
Museum or the Council;
(B) establish policy with respect to the utilization of the
collections and resources of the Museum, including policies
on programming, education, exhibitions, and research with
respect to life, art, and culture of African Americans, the
role of African Americans in the history of the United
States, from slavery to the present, and the contributions of
African Americans to society;

[[Page S4264]]

(C) purchase, accept, borrow, and otherwise acquire
artifacts and other property for addition to the collections
of the Museum;
(D) provide for restoration, preservation, and maintenance
of the collections of the Museum;
(E) loan, exchange, sell, and otherwise dispose of any part
of the collections of the Museum, but only if the funds
generated by such disposition are used for additions to the
collections of the Museum or for programs carried out under
section 6; and
(F) contract with and compensate Federal Government and
private agencies or persons for supplies and services that
would aid the work of the Museum, without regard to section
3709 of the Revised Statutes (41 U.S.C. 5).
(2) Administration.--Subject to subsection (l), the Board
of Regents shall advise and assist the Council on all matters
relating to the administration, operation, maintenance, and
preservation of the Museum.
(3) Annual report to congress.--Subject to subsection (l),
the Council shall submit to Congress an annual report that--
(A) provides a detailed account of the activities of the
Council and the Museum;
(B) recommends an annual budget for the Council and the
Museum; and
(C) identifies the future needs of the Council and the
Museum.
(4) Annual report to the board of regents.--Subject to
subsection (l), the Council shall report annually to the
Board of Regents on the acquisition, disposition, and display
of African American objects and artifacts and on other
appropriate matters.
(c) Composition and Appointment.--
(1) In general.--The Council shall be composed of 25 voting
members as provided under paragraph (2) and 7 honorary
nonvoting members as provided under paragraph (3).
(2) Voting members.--The Council shall include the
following voting members:
(A) The Secretary of the Smithsonian Institution.
(B) An Assistant Secretary of the Smithsonian Institution
appointed by the Board of Regents.
(C) 13 individuals of diverse disciplines and geographical
residence who are committed to the advancement of knowledge
of African American history and culture appointed as follows:
(i) 5 individuals shall be appointed by the President from
a list of nominees provided by the President pro tempore of
the Senate in consultation with the majority and minority
leaders of the Senate.
(ii) 5 individuals shall be appointed by the President from
a list of nominees provided by the Speaker of the House of
Representatives in consultation with the majority and
minority leaders of the House of Representatives.
(iii) 3 individuals shall be appointed by the President.
(D) 10 individuals appointed as follows:
(i) 4 individuals shall be appointed by the President from
a list of nominees, provided by the President pro tempore of
the Senate in consultation with the majority and minority
leaders of the Senate, and recommended by the Association of
African American Museums, the National African American
Museum and Culture Complex, historically black colleges and
universities, and cultural or other organizations committed
to the advancement of knowledge of African American life,
art, history and culture.
(ii) 4 individuals shall be appointed by the President from
a list of nominees, provided by the Speaker of the House of
Representatives in consultation with the majority and
minority leaders of the House of Representatives, and
recommended by the Association of African American Museums,
the National African American Museum and Culture Complex,
historically black colleges and universities, and cultural or
other organizations committed to the advancement of knowledge
of African American life, art, history and culture.
(iii) 2 individuals shall be appointed by the President.
(3) Honorary nonvoting members.--The Council shall include
the following honorary nonvoting members:
(A) The Secretary of the Interior.
(B) 3 Members of the House of Representatives appointed by
the Speaker of the House of Representatives upon the
recommendation of the majority and minority leaders of the
House of Representatives.
(C) 3 Senators appointed by the President pro tempore of
the Senate upon the recommendation of the majority and
minority leaders of the Senate.
(d) Terms.--
(1) In general.--
(A) Initial appointment.--Except as provided in this
subsection, each member of the Council shall be appointed for
a term that terminates 9 years after the date on which the
museum is open to the general public.
(B) Subsequent appointments.--Except as provided in this
subsection, each of the members of the Council that are
appointed after the members described in paragraph (1) shall
be appointed for a term of 6 years.
(C) Reappointment.--Members of the Council may be
reappointed for subsequent terms.
(2) Members of congress.--If a member appointed to the
Council under subparagraph (B) or (C) of subsection (c)(3)
ceases to hold the office that qualified such member for
appointment, that member shall cease to be a member of the
Council.
(3) Vacancies and subsequent appointments.--A vacancy on
the Council, including among the honorary non-voting members,
shall not affect the Council's powers and shall be filled in
the manner in which the original appointment was made, except
that when filling any vacancies among the voting members and
when making any appointments for voting members after the
initial appointments, the President shall make appointments
from a list of nominees provided by the Council. Any member
appointed to fill a vacancy occasioned by death or
resignation shall be appointed for the remainder of the term.
(e) Compensation.--
(1) In general.--Except as provided in paragraph (2),
members of the Council shall serve without pay.
(2) Expenses.--Members of the Council shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with applicable provisions under subchapter I of
chapter 57 of title 5, United States Code.
(f) Chairperson.--The Council shall elect a chairperson by
a majority vote of the voting members of the Council.
(g) Meetings.--
(1) In general.--The Council shall meet at the call of the
chairperson or upon the written request of a majority of the
voting members of the Council, but shall meet, subject to
paragraph (2), not fewer than 2 times each year.
(2) Planning.--During the first year, the Council shall
meet not fewer than 10 times for the purpose of the planning
and design of the Museum.
(h) Quorum.--A majority of the voting members of the
Council shall constitute a quorum for purposes of conducting
business, but a lesser number may receive information on
behalf of the Council.
(i) Bylaws.--The Council shall adopt bylaws.
(j) Powers of Members and Agents.--Any member or agent of
the Council may, if authorized by a majority of the voting
members of the Council, take any action that the Council is
authorized to take by this Act.
(k) Voluntary Services.--Notwithstanding section 1342 of
title 31, United States Code, the chairperson of the Council
may accept for the Council voluntary services provided by a
member of the Council.
(l) Transfer of Powers and Duties.--
(1) In general.--Except as provided in this subsection, the
Council's powers and duties shall transfer to the Board of
Regents 3 years after the date on which the Museum is open to
the general public.
(2) Advisory council.--
(A) In general.--3 years after the date on which the Museum
is open to the general public, the Council shall become an
advisory council (hereafter referred to in this Act as the
``Advisory Council'').
(B) Duties of the advisory council.--The Advisory Council
shall advise the Board of Regents on matters related to the
administration, operation, and maintenance of the Museum.
(C) Meetings.--The Advisory Council shall meet not fewer
than 1 time each year.
(D) Permanent committee.--Section 14 of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Advisory Council.

SEC. 5. DIRECTOR AND STAFF OF THE MUSEUM.

(a) In General.--The Council, in consultation with the
Board of Regents, shall appoint a Director who shall manage
the Museum.
(b) Applicability of Certain Civil Service Laws.--
(1) Appointments.--The Council may appoint the Director and
any additional personnel to serve under the Director, without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service.
(2) Pay.--The Council may fix the pay of the Director at a
rate not to exceed the maximum rate of basic pay payable for
level III of the Executive Schedule and fix the pay of such
additional personnel as the Council considers appropriate.

SEC. 6. OFFICE OF EDUCATION AND LIAISON PROGRAMS.

(a) Office Established.--There is established within the
Museum, the Office of Education and Liaison Programs, which
shall carry out educational programs with respect to the
Museum and other programs in collaboration with other African
American museums.
(b) Functions.--The Office of Education and Liaison
Programs shall--
(1) carry out public educational programs within the Museum
relating to African American life, art, history, and culture,
including programs utilizing digital, electronic, and
interactive technologies, and programs in collaboration with
elementary schools, secondary schools, and post-secondary
schools; and
(2) collaborate with African American museums by--
(A) establishing educational grant programs that strengthen
museum operations, improve care of museum collections, and
increase professional development;
(B) providing internship and fellowship programs that allow
individuals pursuing careers or carrying out studies in the
arts, humanities, and sciences to study African American
life, art, history and culture;
(C) providing scholarship programs to assist individuals
who demonstrate a commitment to a career in African American
museum management in financing their studies; and

[[Page S4265]]

(D) collaborating with national and international
organizations that address the issue of slavery in the
international community.

SEC. 7. LOCATION OF THE NATIONAL MUSEUM OF AFRICAN AMERICAN
HISTORY AND CULTURE.

(a) Main Building.--The Council, in consultation with the
Board of Regents of the Smithsonian Institution is authorized
to plan, design, reconstruct, and renovate the Arts and
Industries Building of the Smithsonian Institution and the
surrounding site to house the Museum. The Council shall
consider expanding, and is authorized to expand, the Arts and
Industries Building horizontally, vertically, and below
ground.
(b) Additional Facilities.--
(1) In general.--If the Council determines that facilities
in addition to the Arts and Industries Building of the
Smithsonian Institution are needed for the Museum, the
Council, in consultation with the General Services
Administration and the National Capital Planning Commission
is authorized to--
(A) identify a site for the additional facilities;
(B) acquire real property for the additional facilities;
(C) design the additional facilities; and
(D)(i) construct a building for the additional facilities;
or
(ii) reconstruct and renovate a building for the additional
facilities.
(2) Location.--Any additional facilities for the Museum
shall be located, if feasible, on or adjacent to the National
Mall.
(3) Purchase authority.--After consultation with the
General Services Administration and the National Capital
Planning Commission, the Council may purchase, with the
consent of the owner thereof, any real property on or
adjacent to the National Mall for such additional facilities.
(4) Transfer authority.--For the purpose of securing
additional facilities, any department or agency of the United
States is authorized to transfer to the Council any interest
of such department or agency in real property located on or
adjacent to the National Mall, and the Council, after
consultation with the General Services Administration and the
National Capital Planning Commission, may accept any such
interest in such property.
(c) Cost-Sharing.--The Council shall pay \1/3\ of the total
cost of carrying out this section from appropriated funds.
The Council shall pay the remainder of such costs from non-
Federal sources. The Council shall have 5 years following the
date of the Council's first meeting to secure the non-Federal
funds required under this subsection.
(d) Commemorative Works Act.--Any building to house the
Museum, including any additional facilities for the Museum,
is not a commemorative work for purposes of the Commemorative
Works Act (40 U.S.C. 1001 et seq.).

SEC. 8. NATIONAL MALL.

In this Act, the term ``National Mall'' means the National
Mall (United States Government Reservations 3, 4, 5, and 6)
in the District of Columbia.

SEC. 9. AUTHORITY.

Authority under this Act to enter into contracts or to make
payments is effective in any fiscal year only to the extent
provided in advance in an appropriations act, except as
provided under section 10(b)(3).

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

(a) Renovation.--There is authorized to be appropriated
such sums as may be necessary to carry out the activities
authorized under section 7.
(b) Operation and Maintenance.--
(1) In general.--There is authorized to be appropriated to
the Council to carry out this Act, other than sections 6 and
7--
(A) $15,000,000 for fiscal year 2002; and
(B) such sums as may be necessary for each succeeding
fiscal year.
(2) Office of education and liaison programs.--There is
authorized to be appropriated to the Council to carry out
section 6, $10,000,000 for fiscal year 2002 and for each
succeeding fiscal year.
(3) Availability.--The amounts appropriated under
paragraphs (1) and (2) shall remain available for the
operation and maintenance of the Museum until expended.

SEC. 11. AMENDMENT.

Section 5580 of the Revised Statutes (20 U.S.C. 42) is
amended in subsection (b)(2) by inserting ``the National
Museum of African American History and Culture,'' after
``Performing Arts,''.

Mr. CLELAND. Mr. President, I rise to discuss legislation being
introduced in the Senate today to establish the National Museum of
African American History and Culture. I am very proud to work with such
distinguished members of the Senate as my friend, Senator Brownback,
and the other co-sponsors of this legislation: Senators Santorum,
Clinton, Reid, Dodd, and Miller. Our bill is similar to a measure being
introduced in the House by Representatives John Lewis and J.C. Watts. I
am both proud and pleased to be associated with this project and look
forward to seeing this legislation passed by the Senate and the House
of Representatives and signed into law by the President in the near
future.
This bipartisan legislation would establish a permanent collection of
artifacts and historical materials showcasing 400 years of African
American history, available for the public to experience and enjoy
year-round. The national museum would be financed by a combination of
public and private sector contributions. A number of studies document
the great need for museum collections addressing African American
history and culture. African American visitors to Washington find that
their story is not being told in the existing museums and memorials.
Yet, there are existing private collections of historical materials
addressing African American history that could be contributed to a
museum in Washington.
Many notable African Americans have made important contributions in
the areas of science, medicine, the arts and humanities, sports, music
and dance, among many other fields. It is right to honor this legacy on
a national level. We believe that by establishing this museum we will
be able to finally honor the legacy of African Americans properly. By
placing this museum on or near the National Mall, we will finally place
the history of African Americans in a national spot-light, where it
belongs.
Legislation authorizing a national museum devoted to African American
history and culture has been introduced during every Congress since
1988. The legislation passed the Senate unanimously in one Congress,
and passed the House unanimously in another session. However, it has
not yet become law. The sponsors of the legislation in the 107th
Congress believe that the time has come for enactment of this
legislation so that families across America from all races and ethnic
groups who visit the nation's capital can more fully understand
American history and the significant contributions of African Americans
to that history.
I encourage others to join us in this endeavor as we attempt to
remember, recognize, and commemorate the major contributions made by
African Americans in the areas of science, medicine, the arts and
humanities, sports, music, and dance. This museum will not only be a
tribute to African American history and culture but it will also be a
source of pride for all Americans as physical evidence of the strength,
character, and dignity of the human race.
______

By Mr. CHAFEE (for himself, Mr. Reid, Mr. Hatch, Mr. Leahy, Mr.
Warner, Mr. Torricelli, Ms. Snowe, Mrs. Murray, Ms. Mikulski,
Mr. Johnson, Mr. Corzine, and Mr. Kerry):
S. 830. A bill to amend the Public Health Service Act to authorize
the Director of the National Institute of Environmental Health Sciences
to make grants for the development and operation of research centers
regarding environmental factors that may be related to the etiology of
breast cancer; to the Committee on Health, Education, Labor, and
Pensions.
Mr. CHAFEE. Mr. President, I am pleased to be joined today by
Senators Reid, Hatch, Leahy, Warner, Toricelli, Snowe, Murray,
Mikulski, Johnson, Corzine, and Kerry in introducing the Breast Cancer
and Environmental Research Act of 2001. This bill would establish
research centers that would be the first in the nation to specifically
study the environmental factors that may be related to the development
of breast cancer. The lack of agreement within the scientific community
and among breast cancer advocates on this question highlights the need
for further study.
It is generally believed that the environment plays some role in the
development of breast cancer, but the extent of that role is not
understood. The Breast Cancer and Environmental Research Act of 2001
will enable us to conduct more conclusive and comprehensive research to
determine the impact of the environment on breast cancer. Before we can
find the answers, we must determine the right questions we should be
asking.
While more research is being conducted into the relationship between
breast cancer and the environment, there are still several issues that
must be resolved to make this research more effective. They are as
follows:
There is no known cause of breast cancer. There is little agreement
in the scientific community on how the environment effects breast
cancer. While studies have been conducted on the links between
environmental factors like pesticides, diet, and electromagnetic
fields, no consensus has been

[[Page S4266]]

reached. There are other factors that have not yet been studied that
could provide valuable information. While there is much speculation, it
is clear that the relationship between environmental exposures and
breast cancer is poorly understood.
There are challenges in conducting environmental research.
Identifying links between environmental factors and breast cancer is
difficult. Laboratory experiments and cluster analyses, such as those
in Long Island, New York, cannot reveal whether an environmental
exposure increases a woman's risk of breast cancer. Epidemiological
studies must be designed carefully because environmental exposures are
difficult to measure.
Coordination between the National Institutes of Health, NIH, the
National Cancer Institute, NCI, and the National Institute of
Environmental Health Sciences, NIEHS, needs to occur. NCI and NIEHS are
the two institutes in the NIH that fund most of the research related to
breast cancer and the environment; however, comprehensive information
specific to environmental effects on breast cancer is not currently
available.
This legislation would establish eight Centers of Excellence to study
these potential links. These ``Breast Cancer Environmental Research
Centers'' would provide for multi-disciplinary research among basic,
clinical, epidemiological and behavioral scientists interested in
establishing outstanding, state-of-the-art research programs addressing
potential links between the environment and breast cancer. The NIEHS
would award grants based on a competitive peer-review process. This
legislation would require each Center to collaborate with community
organizations in the area, including those that represent women with
breast cancer. The bill would authorize $30 million for the next five
years for these grants.
``Genetics loads the gun, the environment pulls the trigger,'' as Ken
Olden, the Director of NIEHS, frequently says. Many scientists believe
that certain groups of women have genetic variations that may make them
more susceptible to adverse environmental exposures. We need to step
back and gather evidence before we come to conclusions--that is the
purpose of this bill. People are hungry for information, and there is a
lot of inconclusive data out there, some of which has no scientific
merit whatsoever. We have the opportunity through this legislation to
gather legitimate and comprehensive data from premier research
institutions across the nation.
According to the American Cancer Society, each year 800 women in
Rhode Island are diagnosed with breast cancer, and 200 women in my
state will die of this terrible disease this year. We owe it to these
women who are diagnosed with this, life-threatening disease to provide
them with answers for the first time.
I urge my colleagues to join me in supporting and cosponsoring this
important legislation, and ask unanimous consent that the text of this
bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record as follows:

S. 830

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 ``Breast Cancer and
Environmental Research Act of 2001''.

SEC. 2. FINDINGS.

The Congress finds as follows:
(1) Breast cancer is the second leading cause of cancer
deaths among American women.
(2) More women in the United States are living with breast
cancer than any other cancer (excluding skin cancer).
Approximately 3,000,000 women in the United States are living
with breast cancer, 2,000,000 of which have been diagnosed
and an estimated 1,000,000 who do not yet know that they have
the disease.
(3) Breast cancer is the most commonly diagnosed cancer
among women in the United States and worldwide (excluding
skin cancer). In 2001, it is estimated that 233,000 new cases
of breast cancer will be diagnosed among women in the United
States, 192,000 cases of which will involve invasive breast
cancer and 40,800 cases of which will involve ductal
carcinoma in situ (DCIS).
(4) Breast cancer is the second leading cause of cancer
death for women in the United States. Approximately 40,000
women in the United States die from the disease each year.
Breast cancer is the leading cause of cancer death for women
in the United States between the ages of 20 and 59, and the
leading cause of cancer death for women worldwide.
(5) A woman in the United States has a 1 in 8 chance of
developing invasive breast cancer in her lifetime. This risk
was 1 in 11 in 1975. In 2001, a new case of breast cancer
will be diagnosed every 2 minutes and a woman will die from
breast cancer every 13 minutes.
(6) All women are at risk for breast cancer. About 90
percent of women who develop breast cancer do not have a
family history of the disease.
(7) The National Action Plan on Breast Cancer, a public
private partnership, has recognized the importance of
expanding the scope and breadth of biomedical,
epidemiological, and behavioral research activities related
to the etiology of breast cancer and the role of the
environment.
(8) To date, there has been only a limited research
investment to expand the scope or coordinate efforts across
disciplines or work with the community to study the role of
the environment in the development of breast cancer.
(9) In order to take full advantage of the tremendous
potential for avenues of prevention, the Federal investment
in the role of the environment and the development of breast
cancer should be expanded.
(10) In order to understand the effect of chemicals and
radiation on the development of cancer, multi-generational,
prospective studies are probably required.

SEC. 3. NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES;
AWARDS FOR DEVELOPMENT AND OPERATION OF
RESEARCH CENTERS REGARDING ENVIRONMENTAL
FACTORS RELATED TO BREAST CANCER.

Subpart 12 of part C of title IV of the Public Health
Service Act (42 U.S.C. 285l et seq.) is amended by adding at
the end the following section:

``SEC. 463B. RESEARCH CENTERS REGARDING ENVIRONMENTAL FACTORS
RELATED TO BREAST CANCER.

``(a) In General.--The Director of the Institute, based on
recommendations from the Breast Cancer and Environmental
Research Panel established under subsection (b) (referred to
in this section as the `Panel') shall make grants, after a
process of peer review and programmatic review, to public or
nonprofit private entities for the development and operation
of not more than 8 centers for the purpose of conducting
multidisciplinary and multi-institutional research on
environmental factors that may be related to the etiology of
breast cancer. Each such center shall be known as a Breast
Cancer and Environmental Research Center of Excellence.
``(b) Breast Cancer and Environmental Research Panel.--
``(1) Establishment.--The Secretary shall establish in the
Institute of Environmental Health Sciences a Breast Cancer
and Environmental Research Panel.
``(2) Composition.--The Panel shall be composed of--
``(A) 9 members to be appointed by the Secretary, of
which--
``(i) six members shall be appointed from among physicians,
and other health professionals, who--

``(I) are not officers or employees of the United States;
``(II) represent multiple disciplines, including clinical,
basic, and public health sciences;
``(III) represent different geographical regions of the
United States;
``(IV) are from practice settings or academia or other
research settings; and
``(V) are experienced in biomedical review; and

``(ii) three members shall be appointed from the general
public who are representatives of individuals who have had
breast cancer and who represent a constituency; and
``(B) such nonvoting, ex officio members as the Secretary
determines to be appropriate.
``(3) Chairperson.--The members of the Panel appointed
under paragraph (2)(A) shall select a chairperson from among
such members.
``(4) Meetings.--The Panel shall meet at the call of the
chairperson or upon the request of the Director, but in no
case less often than once each year.
``(5) Duties.--The Panel shall--
``(A) oversee the peer review process for the awarding of
grants under subsection (a) and conduct the programmatic
review under such subsection;
``(B) make recommendations with respect to the funding
criteria and mechanisms under which amounts will be allocated
under this section; and
``(C) make final programmatic recommendations with respect
to grants under this section.
``(c) Collaboration With Community.--Each center under
subsection (a) shall establish and maintain ongoing
collaborations with community organizations in the geographic
area served by the center, including those that represent
women with breast cancer.
``(d) Coordination of Centers; Reports.--The Director of
the Institute shall, as appropriate, provide for the
coordination of information among centers under subsection
(a) and ensure regular communication between such centers,
and may require the periodic preparation of reports on the
activities of the centers and the submission of the reports
to the Director.
``(e) Required Consortium.--Each center under subsection
(a) shall be formed from a

[[Page S4267]]

consortium of cooperating institutions, meeting such
requirements as may be prescribed by the Director of the
Institute. Each center shall require collaboration among
highly accomplished scientists, other health professionals
and advocates of diverse backgrounds from various areas of
expertise.
``(f) Duration of Support.--Support of a center under
subsection (a) may be for a period not exceeding 5 years.
Such period may be extended for one or more additional
periods not exceeding 5 years if the operations of such
center have been reviewed by an appropriate technical and
scientific peer review group established by the Director of
the Institute and if such group has recommended to the
Director that such period should be extended.
``(g) Geographic Distribution of Centers.--The Director of
the Institute shall, to the extent practicable, provide for
an equitable geographical distribution of centers under this
section.
``(h) Innovative Approaches.--Each center under subsection
(a) shall use innovative approaches to study unexplored or
under-explored areas of the environment and breast cancer.
``(i) Authorization of Appropriations.--For the purpose of
carrying out this section, there is authorized to be
appropriated $30,000,000 for each of the fiscal years 2002
through 2007. Such authorization is in addition to any other
authorization of appropriations that is available for such
purpose.''.

Mr. REID. Mr. President, I am pleased to join Senator Chafee in
introducing the Breast Cancer and Environmental Research Act. Senator
Chafee and I serve together on the Environment and Public Works
Committee where we have had the opportunity to take a closer look at
different environment-related health concerns. Most recently, the
Committee traveled to Nevada to investigate what environmental factors
may have contributed to a childhood leukemia cluster in the town of
Fallon.
The Fallon hearing reminded me how little we know about what causes
cancer and what, if any, connection exists between the environment and
cancer. Three decades have passed since President Nixon declared the
``War on Cancer'' and scientists are still struggling with these and
other crucial unanswered questions about cancer. This is particularly
true in the case of breast cancer. We still don't know what causes
breast cancer. We don't know if the environment plays a role in the
development of breast cancer, and if it does, we don't know how
significant that role is. In our search for answers about breast
cancer, we need to make sure we are asking the right questions.
To date, there has been only a limited research investment to study
the role of the environment in the development of breast cancer. More
research needs to be done to determine the impact of the environment on
breast cancer. The Breast Cancer and Environmental Research Act would
give scientists the tools they need to pursue a better understanding
about what links between the environment and breast cancer may exist.
Specifically, our bill would authorize $30 million dollars to the
National Institute of Environmental Health Sciences to establish eight
Centers of Excellence that would focus on breast cancer and the
environment.
In the year 2000 alone, 183,000 women will learn that they have
breast cancer. In this same year, 40,000 women will die from breast
cancer. In Nevada--a state with a population under two million people--
1,200 women will be diagnosed with breast cancer in this year and 200
women will lose their lives to this deadly disease. These women are our
mothers, our wives, our daughters, and our friends.
If we miss promising research opportunities because of Congress'
failure to act, millions of women and their families will face critical
unanswered questions about breast cancer. I urge my colleagues to join
in our quest for answers about this deadly disease and to support the
Breast Cancer and Environmental Research Act.
______

By Mr. SHELBY:
S. 831. A bill to amend the Internal Revenue Code of 1986 to provide
for a 100 percent deduction for business meals; to the Committee on
Finance.
Mr. SHELBY. Mr. President, I rise today to introduce legislation that
would increase the deductibility of business meals to 100 percent. By
only allowing a 50 percent deduction, the current law unfairly hurts
small business owners who many times conduct business face to face over
a meal. For these people, the costs of business meals truly is a
legitimate business expense. However, unlike other business expenses,
they are not able to fully deduct the cost of business meals.
America's small businesses are the backbone of our economy. Allowing
full deductibility of business related meals will lighten the heavy
financial burden small business owners face daily just to be able to
keep their doors open. Furthermore, increased deductibility will inject
additional capital into our country's businesses, allowing them to
spend more money on innovation and growth. Such activities will lead to
more jobs and a stronger economy.
Full deductibility of business meals will also create an increase in
restaurant patronage. As a result, my bill will benefit waiters,
waitresses, cooks and other restaurant workers by increasing their job
security and wages. Increased wages will make it easier for restaurant
employees to meet the rising cost of living. With the cost of gasoline,
electricity, and health insurance rising to unprecedented levels,
higher wages can not come soon enough.
Just as importantly, increased wages will make it easier for more
Americans to save for their retirement. Rather than living paycheck to
paycheck, increased wages in the restaurant industry will make it
possible for more people to begin to save for the future. Given the
bleak predictions for the continued solvency of the Social Security
trust fund, Congress must do all that it can to encourage saving.
Similar bills to increase the deductibility of business meals have
been introduced in previous years. Now is the time to move beyond mere
discussion and to move towards meaningful action. This legislation will
have a positive effect on our economy. It fosters small business growth
and will help increase wages for many Americans throughout the country.
I ask that my colleagues join me in support of this bill.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 831

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

SECTION 1. INCREASED DEDUCTION FOR BUSINESS MEAL EXPENSES.

(a) In General.--Section 274(n)(1) (relating to only 50
percent of meal and entertainment expenses allowed as
deduction) is amended by striking ``50 percent'' in the text
and inserting ``the allowable percentage''.
(b) Allowable Percentage.--Section 274(n) is amended by--
(1) striking paragraph (3);
(2) redesignating paragraph (2) as paragraph (3); and
(3) inserting after paragraph (1) the following new
paragraph:
``(2) Allowable percentage.--For purposes of paragraph (1),
the allowable percentage is--
``(A) in the case of amounts for items described in
paragraph (1)(B), 50 percent, and
``(B) in the case of expenses for food or beverages, 100
percent.''.
(c) Conforming Amendment.--The heading for subsection (n)
of section 274 is amended by striking ``50 Percent'' and
inserting ``Limited Percentages''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
______

By Mr. CAMPBELL (for himself and Mr. Inouye):
S. 832. A bill to amend the Indian Gaming Regulatory Act, and for
other purposes; to the Committee on Indian Affairs.
Mr. CAMPBELL. Mr. President, today I am pleased to introduce the
Indian Gaming Regulatory Improvement Act of 2001 to make what I believe
are necessary changes to the Indian Gaming Regulatory Act of 1988. I am
very pleased to be joined by Senator Inouye in this regard.
The IGRA was signed into law in 1988 with two purposes in mind: to
provide for and continue the economic opportunities tribal gaming
presents to Indian tribes; and to provide a regulatory framework which
ensures the integrity of tribal gaming--integrity that benefits tribes
as well as customers of tribal gaming operations.
In 1988, tribal gaming was a relatively new activity and in 13 years
tribal gaming annual gross revenues have grown from $500 million to $9
billion. The IGRA requires these revenues to be spent by tribal
governments for specific purposes including physical infrastructure,
general welfare and the

[[Page S4268]]

betterment of Indian and surrounding non-Indian communities.
Out of 561 federally recognized tribes, there are 212 tribes that
conduct some form of gaming. The old saying that the best social
welfare policy is a job is true when it comes to tribal gaming. The
economic benefits for these tribes, their members and surrounding
communities cannot be ignored. For these communities collectively,
unemployment has dropped significantly and workers, both Non-Indian and
Indian alike, employed by these operations enjoy benefits such as
steady income and good paying jobs, health insurance and retirement
benefits. Additionally, tribes who operate gaming have been able
to complement scarce federal dollars to provide for housing, health
care and education for their members and to generate hundreds of
thousands of jobs for Indians and non-Indians nationwide.

The legislation I am introducing today closely resembles a measure I
introduced in the last Congress and is not intended to be a
comprehensive attempt to address all gaming matters that have arisen in
the past 13 years. Rather, this bill takes aim at 6 very specific
items:
1. With regard to gaming fees assessed against tribal operations,
this bill will require the Federal National Indian Gaming Commission to
levy fees that are reasonably related to the duties of and services
provided by the Commission to tribes, and in certain instances to
reduce the level of fees payable by those operations;
2. The bill establishes a requirement that fees paid by tribes can
only be utilized for the specific activities of the Commission mandated
by the IGRA;
3. It provides statutory authority for the Commission to establish,
through a negotiated rule-making process, minimum standards for the
conduct of tribal gaming, while still recognizing the primary
responsibility of tribes to regulate gaming on tribal lands;
4. The bill authorizes technical assistance to tribes for a number of
purposes including strengthening tribal regulatory regimes; assessing
the feasibility of non-gaming economic development activities on Indian
lands; providing treatment services for problem gamblers; and for other
purposes not inconsistent with the IGRA;
5. It clarifies the current conflict between the IGRA and other
Federal law with regard to the classification of certain games
conducted by tribes; and
6. Last, to bring the Commission in line with all other Federal
agencies it specifically subjects the Commission to the reporting and
strategic and long-term planning requirements similar to requirements
contained in the Government Performance and Results Act of 1993
(``GPRA'').
While there are other matters that Indian tribes and others wish to
address that are not included in this bill, I am hopeful that my
colleagues will find this legislation to be reasonable and targeted to
specific issues that demand our attention in this session of Congress.
I ask 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. 832

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 ``Indian Gaming Regulatory
Improvement Act of 2001''.

SEC. 2. AMENDMENTS TO THE INDIAN GAMING REGULATORY ACT.

The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.)
is amended--
(1) in section 4(7) (25 U.S.C. 2703(7)), by adding at the
end the following:
``(G) Notwithstanding any other provision of law, sections
1 through 7 of the Act of January 2, 1951 (commonly known as
the Gambling Devices Transportation Act (15 U.S.C. 1171-
1177)) shall not apply to any gaming described in
subparagraph (A)(i) (class II gaming) where electronic,
computer, or other technologic aids are used in connection
with any such gaming.'';
(2) in section 7 (25 U.S.C. 2706)--
(A) in subsection (c)--
(i) in paragraph (3), by striking ``and'' at the end
thereof;
(ii) by redesignating paragraph (4) as paragraph (5); and
(iii) by inserting after paragraph (3), the following:
``(4) the strategic plan for Commission activities.''; and
(B) by adding at the end the following:
``(d) Strategic Plan.--
``(1) In general.--The strategic plan required under
subsection (c)(4) shall include--
``(A) a comprehensive mission statement covering the major
functions and operations of the Commission;
``(B) the general goals and objectives, including outcome-
related goals and objectives, for the major functions and
operations of the Commission;
``(C) a description of how the general goals and objectives
are to be achieved, including a description of the
operational processes, skills and technology, and the human,
capital, information, and other resources required to meet
those goals and objectives;
``(D) a performance plan that shall be related to the
general goals and objectives of the strategic plan;
``(E) an identification of the key factors external to the
Commission and beyond its control that could significantly
affect the achievement of the general goals and objectives;
and
``(F) a description of the program evaluations used in
establishing or revising the general goals and objectives,
with a schedule for future program evaluations.
``(2) Term of plan.--The strategic plan shall cover a
period of not less than 5 fiscal years beginning with the
fiscal year in which it the plan is submitted. The strategic
plan shall be updated and revised at least every 4 years.
``(3) Performance plan.--The performance plan under
paragraph (1)(D) shall be consistent with the strategic plan.
In developing the performance plan, the Commission should be
consistent with the requirements of section 1115 of title 31,
United States Code (the Government Performance and Results
Act).
``(4) Consultation.--In developing the strategic plan, the
Commission shall consult with the Congress and tribal
governments, and shall solicit and consider the views and
suggestions of those entities that may be potentially
affected by or interested in such a plan.'';
(3) in section 11(b)(2)(F)(i) (25 U.S.C. 2710(b)(2)(F)(i)),
by striking ``primary management'' and all that follows
through ``such officials'' and inserting ``tribal gaming
commissioners, key tribal gaming commission employees, and
primary management officials and key employees of the gaming
enterprise and that oversight of primary management officials
and key employees'';
(4) in section 18(a) (25 U.S.C. 2717(a))--
(A) in paragraph (1), by striking ``by each'' and all that
follows through the period and inserting ``pursuant to
section 22(a)'';
(B) by striking paragraphs (2) and (3); and
(C) by redesignating paragraphs (4) through (6) as
paragraphs (2) through (4), respectively;
(5) by redesignating section 22 (25 U.S.C. 2721) as section
25; and
(6) by inserting after section 21 (25 U.S.C. 2720) the
following:

``SEC. 22. FEE ASSESSMENTS.

``(a) Establishment of Schedule of Fees.--
``(1) In general.--Except as provided in this section, the
Commission shall establish a schedule of fees to be paid
annually to the Commission by each gaming operation that
conducts a class II or class III gaming activity that is
regulated by this Act.
``(2) Rates.--The rate of fees under the schedule
established under paragraph (1) that are imposed on the gross
revenues from each activity described in such paragraph shall
be as follows:
``(A) A fee of not more than 2.5 percent shall be imposed
on the first $1,500,000 of such gross revenues.
``(B) A fee of not more than 5 percent shall be imposed on
amounts in excess of the first $1,500,000 of such gross
revenues.
``(3) Total amount.--The total amount of all fees imposed
during any fiscal year under the schedule established under
paragraph (1) shall not exceed $8,000,000.
``(b) Commission Authorization.--
``(1) In general.--By a vote of not less than 2 members of
the Commission the Commission shall adopt the schedule of
fees provided for under this section. Such fees shall be
payable to the Commission on a quarterly basis.
``(2) Fees assessed for services.--The aggregate amount of
fees assessed under this section shall be reasonably related
to the costs of services provided by the Commission to Indian
tribes under this Act (including the cost of issuing
regulations necessary to carry out this Act). In assessing
and collecting fees under this section, the Commission shall
take into account the duties of, and services provided by,
the Commission under this Act.
``(3) Rulemaking.--The Commission shall promulgate
regulations as may be necessary to carry out this subsection.
``(4) Consultation.--In establishing a schedule of fees
under this section, the Commission shall consult with Indian
tribes.
``(c) Fee Reduction Program.--
``(1) In general.--In making a determination of the amount
of fees to be assessed for any class II or class III gaming
activity under the schedule of fees under this section, the
Commission may provide for a reduction in the amount of fees
that otherwise would be collected on the basis of the
following factors:
``(A) The extent of the regulation of the gaming activity
involved by a State or Indian tribe (or both).
``(B) The extent of self-regulating activities, as defined
by this Act, conducted by the Indian tribe.

[[Page S4269]]

``(C) Other factors determined by the Commission, including
``(i) the unique nature of tribal gaming as compared to
commercial gaming, other governmental gaming, and charitable
gaming;
``(ii) the broad variations in the nature, scale, and size
of tribal gaming activity;
``(iii) the inherent sovereign rights of Indian tribes with
respect to regulating the affairs of Indian tribes;
``(iv) the findings and purposes under sections 2 and 3;
``(v) the amount of interest or investment income derived
from the Indian gaming regulation accounts; and
``(vi) any other matter that is consistent with the
purposes under section 3.
``(2) Rulemaking.--The Commission shall promulgate
regulations as may be necessary to carry out this subsection.
``(3) Consultation.--In establishing any fee reduction
program under this subsection, the Commission shall consult
with Indian tribes.
``(d) Indian Gaming Regulation Accounts.--
``(1) In general.--All fees and civil forfeitures collected
by the Commission pursuant to this Act shall be maintained in
separate, segregated accounts, and shall only be expended for
purposes set forth in this Act.
``(2) Investments.--It shall be the duty of the Commission
to invest such portion of the accounts maintained under
paragraph (1) as are not, in the judgment of the Commission,
required to meet immediate expenses. The Commission shall
invest the amounts deposited under this Act only in interest-
bearing obligations of the United States or in obligations
guaranteed as to both principal and interest by the United
States.
``(3) Sale of obligations.--Any obligation acquired by the
accounts maintained under paragraph (1), except special
obligations issued exclusively to such accounts, may be sold
by the Commission at the market price, and such special
obligations may be redeemed at par plus accrued interest.
``(4) Credits to the indian gaming regulatory accounts.--
The interest on, and proceeds from, the sale or redemption of
any obligations held in the accounts maintained under
paragraph (1) shall be credited to and form a part of such
accounts.

``SEC. 23. MINIMUM STANDARDS.

``(a) Class I Gaming.--Notwithstanding any other provision
of law, class I gaming on Indian lands shall be within the
exclusive jurisdiction of the Indian tribes and shall not be
subject to the provisions of this Act.
``(b) Class II Gaming.--Effective on the date of enactment
of this section, an Indian tribe shall retain primary
jurisdiction to regulate class II gaming activities which, at
a minimum, shall be conducted in conformity with section 11
and regulations promulgated pursuant to subsection (d).
``(c) Class III Gaming.--Effective on the date of enactment
of this section, an Indian tribe shall retain primary
jurisdiction to regulate class III gaming activities
authorized under this Act. Any class III gaming operated by
an Indian tribe pursuant to this Act shall be conducted in
conformity with section 11 and regulations promulgated
pursuant to subsection (d).
``(d) Rulemaking.--
``(1) In general.--
``(A) Promulgation.--Not later than 180 days after the date
of enactment of the Indian Gaming Regulatory Improvement Act
of 2001, the Commission shall develop procedures under
subchapter III of chapter 5 of title 5, United States Code,
to negotiate and promulgate regulations relating to--
``(i) the monitoring and regulation of tribal gaming;
``(ii) the establishment and regulation of internal control
systems; and
``(iii) the conduct of background investigation.
``(B) Publication of proposed regulations.--Not later than
1 year after the date of enactment of the Indian Gaming
Regulatory Improvement Act of 2001, the Commission shall
publish in the Federal Register proposed regulations
developed by a negotiated rulemaking committee pursuant to
this section.
``(2) Committee.--A negotiated rulemaking committee
established pursuant to section 565 of title 5, United States
Code, to carry out this subsection shall be composed only of
Federal and Indian tribal government representatives, a
majority of whom shall be nominated by and be representative
of Indian tribes that conduct gaming pursuant to this Act.
``(e) Existing Regulations.--Regulations that establish
minimum internal control standards that are promulgated by
the Commission and in effect on the date of enactment of this
section shall, effective on the date that is 1 year after
such date of enactment, have no force or effect.

``SEC. 24. USE OF NATIONAL INDIAN GAMING COMMISSION CIVIL
FINES.

``(a) In General.--Amounts collected by the Commission
pursuant to section 14 shall be deposited in a separate
Indian gaming regulation account as established under section
22(d). Funds in such accounts shall be available to the
Commission, as provided for in advance in appropriations
Acts, for carrying out this Act.
``(b) Use of Funds.--The Commission may provide grants and
technical assistance to Indian tribes from any funds secured
by the Commission pursuant to section 14, which funds shall
be made available only for the following purposes:
``(1) To provide technical training and other assistance to
Indian tribes to strengthen the regulatory integrity of
Indian gaming.
``(2) To provide assistance to Indian tribes to assess the
feasibility of non-gaming economic development activities on
Indian lands.
``(3) To provide assistance to Indian tribes to devise and
implement programs and treatment services for individuals
diagnosed as problem gamblers.
``(4) To provide other forms of assistance to Indian tribes
not inconsistent with the Indian Gaming Regulatory Act.
``(c) Source of Funds.--Amounts used to carry out
subsection (b) may only be drawn from funds--
``(1) collected by the Commission pursuant to section 14;
and
``(2) the use of which has been authorized in advance by an
appropriations Act.
``(d) Consultation.--In carrying out this section, the
Commission shall consult with Indian tribes and any other
appropriate tribal or Federal officials.
``(e) Regulations.--The Commission may promulgate such
regulations as may be necessary to carry out this section.''.
______

By Ms. SNOWE (for herself, Mr. Dodd, Mr. Jeffords, Mr.
Rockefeller, Mr. Bingaman, and Ms. Collins):
S. 833. A bill to amend the Internal Revenue Code of 1986 to expand
the child tax credit; to the Committee on Finance.
Ms. SNOWE. Mr. President, I rise today to introduce the Child Tax
Credit Expansion and Equity Act of 2001, with my good friend and
colleague, the Senator from Connecticut, Mr. Dodd, and our other
cosponsors Mr. Jeffords, Mr. Rockefeller, Mr. Bingaman, and Ms.
Collins. This legislation would take an important first step towards
helping those children who are most in need, by expanding the current
Child Tax Credit and making its benefits more equitable.
That I am here today introducing this bill is due in large part to
the efforts of two other people. Thanks to the President's initiative
to double the current child tax credit from $500 to $1,000. This effort
has opened the door to addressing the cost borne by the parents in our
society as they raise their children.
Of course, there is a larger cost than just the monetary expense
incurred in taking care of and raising children. However, what better
way can we acknowledge this cost, and lessen parents' burden than to
increase the child tax credit. My good friend, and colleague,
Representative Connie Morella, from Maryland, recognized this and began
an effort in the House of Representatives to address the current child
tax credit inequity. I thank her for all of her good work and am happy
to be able to work with her from this side of the Capitol to see that
this issue is properly addressed.
The President's proposal, while an important first step, doesn't do
enough to help those who need it the most--our low and middle income
families. But make no mistake it is thanks to the President's opening
the door to the Child Tax Credit that we are here today to take that
effort one step further and make this credit partially refundable.
There are over 16 million children in poverty, 1 in every 4, whose
families have no federal tax liability and therefore will receive no
benefit from an increase in the child tax credit because it's not
refundable. More than two-thirds of these children are in working
families.
There are an additional 7 million children who live in families that
will not benefit from an increase in the child tax credit unless it's
refundable due to their limited tax liability because they do not pay
enough in federal taxes to get a $500 credit. Yet, these families pay
taxes. They pay federal and state taxes, payroll taxes, gas taxes,
phone taxes, sales taxes, property taxes and other taxes.
Overwhelmingly, they represent working families. They have no federal
tax liability and therefore without this change to the child tax credit
they will receive no benefit from an increased child tax credit.
There may be some who will say that unless you can do it all don't do
any of it. There are some who will say that only a fully refundable
credit is acceptable. However, I respectfully disagree. I have served
in Congress for over two decades and I have learned that you should
never pass up the opportunity to make a difference. I have long made

[[Page S4270]]

improving the lives of our children a priority.
The Child Tax Credit Expansion and Equity Act, would expand the child
tax credit from $500 to $1,000 as proposed by the President, but it
would make the first $500 refundable. Families which would otherwise
receive nothing, would have a $500 refundable credit to help mitigate
the costs of raising their children today.
This bill just makes good sense. It makes sense that every family
with children should be eligible for the child tax credit. It makes
good sense to expand the number of families that qualify for the credit
instead of just giving more money to those families that already
benefit. It makes good sense and it does so in a simple and fair way.
It does not create another complicated tax form. The amount of the
credit is based on the number of dependents, period. It fits into the
current tax code and doesn't require a complex calculation or a degree
in accounting. This is good public policy.
If timing is everything, then this is the time to do this for some of
our most needy families. America today is prosperous, healthy and
strong. And yet, too many of our children, our most vulnerable of
citizens are in need of assistance. When the federal government is
expecting the largest surplus ever, shouldn't we make an investment in
our future and help those who need it most.
I urge my colleagues to consider this legislation and work with me
and the cosponsors to ensure that the child tax credit is assisting the
most children possible.
Mr. DODD. Mr. President, I am pleased to join with my colleague from
Maine, Senator Snowe, in introducing legislation to make the child tax
credit refundable.
Throughout America, families with children struggle with the extra
cost associated with raising children today.
Early in the President's campaign, he proposed to increase the
current child tax credit from $500 to $1,000. While a reduction in tax
rates is helpful to families, an increase in the per child tax credit
is especially helpful because it recognizes that there are costs
associated with raising a family.
During the President's inaugural remarks, he said, ``America at its
best, is compassionate. In the quiet of American consciences, we know
that deep, persistent poverty is unworthy of our nation's promise.''
With much applause, the President continued, ``And whatever our views
of its cause, we can agree that children at risk are not at fault.''
``Americans in need are not strangers, they are citizens, not problems,
but priorities.
While I very much support the President's proposal to increase the
child tax credit from $500 to $1,000, it makes sense to me that all
families, not just families with tax liability, should receive such
assistance.
Because the President's tax credit is not refundable, over 16 million
children are left behind. They live in families with no federal tax
liability and therefore will receive no benefit from an increase in the
child tax credit because it's not refundable--it's not available to
families without federal tax liability.
An additional 7 million children live in families who will not
benefit from an increase in the child tax credit unless it's refundable
because their current credit would not increase due to limited tax
liability.
Yet, these families pay taxes. They pay federal and state taxes,
payroll taxes, gas taxes, phone taxes, and other taxes. Overwhelmingly,
they represent working families. Yet, at $12,000 or $20,000, they have
no federal tax liability and therefore unless the child tax credit is
made refundable, they will receive no benefit from an increased child
tax credit.
The legislation we are introducing today will increase the current
child tax credit from $500 to $1,000 as the President proposed, but
would also provide a refundable credit of $500 per child for those
families without federal income tax liability. This reform will lift
one million families out of poverty.
Often, people talk of the complexity of the tax code. The beauty of
making the child tax credit refundable is its simplicity. All families,
regardless of income, would receive the credit--no marriage penalty, no
cliff, no complicated phase-outs.
Back in 1991, the Bipartisan National Children's Commission, chaired
by my colleague from West Virginia, Senator Rockefeller, recommended
enacting a refundable child tax credit. After a decade, the time is
right. We have the resources. And, I hope and believe, we have the
will.
Making the child tax credit refundable is simply one of the most
effective antipoverty strategies in years.
I urge my colleagues to join with us today in supporting this
legislation.

____________________