[Congressional Record Volume 147, Number 104 (Tuesday, July 24, 2001)]
[Senate]
[Pages S8124-S8136]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. ALLARD:
S. 1224. A bill to amend title XVIII of the Social Security Act to
extend the availability of Medicare cost contracts for 10 years; to the
Committee on Finance.
Mr. ALLARD. Mr. President, I am pleased to introduce the Medicare
Cost Contract Extension Act of 2001.
For decades, the Centers for Medicare and Medicaid Services (formerly
the Health Care Financing Administration), has successfully offered
health insurance providers two contracts to choose from: a Medicare
risk contract, (Medicare+Choice), and Medicare cost contract. In an
effort to expand and refine the Medicare+Choice program, the Balanced
Budget Act of 1997 terminated the Medicare cost contract program
effective December 31, 2002. To prevent this termination, in 1999
Congress passed the Balanced Budget and Refinement Act, which extended
cost contracts for two years through 2004.
I am pleased that Congress passed into law this two-year extension of
Medicare cost contracting. This extension will help Medicare
beneficiaries in rural communities in the United States keep the
quality health care they currently receive under their cost contract
plans.
Congress should work to extend further Medicare cost contracts. The
Medicare Cost Contract Extension Act of 2001 would accomplish this by
extending by ten years the cost contract sunset date of December 31,
2004 to December 31, 2014.
Currently 298,683 Americans, and 18,050 Coloradans receive health
care through Medicare cost contracts. Of the 18,050 Coloradans with
cost contract plans, 16,075 (89 percent) of them live in rural
Colorado, where few Medicare and Medicare+Choice providers operate. If
Medicare cost contracts are eliminated, essentially two health care
options for Medicare beneficiaries would remain: traditional Medicare
fee-for-service, which can include Medigap, and Medicare+Choice. If
Medicare cost contracts are eliminated, as scheduled in 2004, then
thousands of seniors will be forced into these other Medicare programs.
Basic Medicare and Medicare+Choice providers, however, are few in
rural Colorado, where health care demands are great. In addition to the
fact that 89 percent of Colorado's seniors with cost contract plans
live in rural areas, 6,358, 35 percent, of Colorado Medicare managed
care beneficiaries live in counties in which Medicare+Choice is not
even available. Further, cost contract plans are more widely used
across the State than are Medicare+Choice plans: Medicare+Choice is the
Medicare option of beneficiaries in only 20 of Colorado's 64 counties,
while Medicare cost contracts are enjoyed by seniors in 46 counties in
Colorado.
In addition to accessibility, basic Medicare has fewer benefits than
cost contract plans, and Medigap has higher out-of-pocket expenses than
cost contract plans. Cost contract plans often provide more benefits
than Medigap, such as preventive care and prescription drug benefits,
and Medicare Part B deductible coverage. In addition, some cost
contract plans offer one rate for older Medicare beneficiaries, while
Medigap plans charge higher premiums for beneficiaries who are older.
Further, beneficiaries under Medicare cost contracts value the
services cost contracting companies offer. According to a 1999 U.S.
Department of Health and Human Services study, the Medicare Managed
Care Consumer Assessment of Health Plans Study, CAHPS, Medicare
beneficiaries gave Medicare cost contract health insurers higher
ratings than non-cost contract providers. Beneficiaries noted cost
contracting HMOs solved problems, provided care, and provided customer
service better than the majority of non-cost contracting providers.
These ratings demonstrate that cost contract insurers provide the
quality service seniors want and the health benefits they need.
While the goal of the Balanced Budget Act of 1997 was to provide an
alternative to basic Medicare through Medicare+Choice, Medicare+Choice
has not accomplished this goal in rural America. One of the objectives
of President Bush and Tommy Thompson, the Secretary of Health and Human
Services, is to increase in the near future Medicare+Choice enrollment.
I support and have confidence in this effort. Until Medicare+Choice
coverage is readily available to rural cost contract recipients
Congress should extend the current cost contract sunset for an
additional ten years.
Medicare beneficiaries deserve a choice in how they receive their
health care. Congress should allow one of these choices to remain
Medicare cost contracts. On behalf of the 298,683 U.S. and 18,050
Colorado Medicare beneficiaries who obtain their health care from cost
contract plans, I urge my colleagues to extend Medicare cost contract
plans for ten years.
______
By Mr. ALLEN (for himself and Mr. Warner):
S. 1225. A bill to require the Secretary of the Treasury to redesign
the $1 bill so as to incorporate the preamble to the Constitution of
the United States, the Bill of Rights, and a list of the Articles of
the Constitution on the reverse side of such currency; to the Committee
on Banking, Housing, and Urban Affairs.
Mr. ALLEN. Mr. President, I rise today to introduce the Liberty Bill
Act, which directs the United States Treasury to print an abridged
Constitution with the titles of salient articles and amendments of the
Constitution of the United States on the back of our one dollar bill.
Indeed, the redesign of a Ten, Twenty, Fifty or 100 dollar bill could
incorporate this goal.
This important and innovative legislation is designed to educate,
encourage and promote the understanding of the fundamental principles,
the concept of self-government, free will and the protection of
individual rights, of the United States for all Americans and people
around the world who may use U.S. currency.
I believe that it is most fitting that the idea for the Liberty Bill
Act began in a classroom in Liberty Middle School, in Ashland VA, and
carried forth by students at Patrick Henry High School in Hanover
County, VA, by students who wanted to do something good for this
country and its democratic principles.
A little more than three years ago at Virginia's Poor Farm Park's
amphitheatre, 170 students, representing Liberty Middle School, recited
the abridged Constitution as part of a school project. The so-called
Liberty Bill project left them with a deeper appreciation of the
Constitution and how important it is that we, as Americans, fully
understand our heritage and the principles of freedom, justice and
liberty. And, fortunately for the rest of us, the Liberty Bill project
also left them with the desire to communicate this appreciation to all
Americans and to all people worldwide.
I am proud to say that these students did not simply stop their
education at this juncture. Instead, they worked with their teacher,
Mr. Randy Wright, to create a proposal that would serve as a reminder
of our rights and responsibilities as citizens of the United States.
After careful thought and consideration, the students decided that
putting the thoughts of our Constitution on the back of the dollar
bill, something that passes through the hands of millions of people
around the world every day, would serve as the powerful reminder of how
important the Constitution is to our representative democracy.
[[Page S8125]]
In addition, the newly revised dollar bill would teach the progress
of American history, highlighting amendments that were added to the
Constitution as our nation evolved into the free and prosperous global
leader it is today. For example, despite a strong belief in what some
termed the ``inherent and unalienable rights of man,'' the fledgling
American government did not protect the individual rights and liberties
of all Americans. In fact, it was not until 1865, upon the adoption of
amendment XIII, slavery was abolished and all races were guaranteed
their freedom under the law.
In addition, the right to vote and have a say in one's government and
the policies that affect everyday life, was not extended to all
Americans. In fact, only white men could vote until amendment XV,
proclaimed in 1870, provided that all men could vote, regardless of
their race or status as a former slave. Later, in 1920, amendment XIX
rightfully extended suffrage to all of America's people, securing the
right of women to have a voice in our government as well. For a
representative democracy is not truly representative until all people
are heard.
Referencing constitutional amendments, such as amendments XIII, XV,
and XIX on our dollar bill, would help to highlight not only the
adaptive qualities of our Constitution and its ability to reflect an
increasingly enlightened awareness of the rights of all people, but
teach us to appreciate and value these freedoms and rights as
Americans.
The Constitution of the United States is one of the most important
documents in all of history. Yet in this day and age many Americans do
not even know all the rights and protections enshrined in the first ten
amendments, our Bill of Rights. Many Americans fail to recognize the
Constitution as framework of the United States government and its
impact on our government and prosperity as a nation of free people.
The dollar bill is the most used and most recognized currency in the
world, every day it pass through the hands of millions of people around
the world. And, as the students of Liberty Middle School asked
themselves three years ago: ``What better way than to highlight the
Constitution and promote the ideals and values it represents than
putting the principles it embodies on the back of the dollar bill?''
Every day I come across adults who complain that they are powerless
to affect our political process or laws. They claim that even their
vote will not make a difference.
Yet, a group of middle school students, through their commitment and
determination, have persevered.
In just three years these students have taken up the challenge to
help ensure every American understands the basic precepts of our
treasured Constitution. This group of students developed a plan to
reach this goal. They have gained media coverage and the endorsement of
editorialists nationwide and their local governments, receiving acclaim
from such notables as the Wall Street Journal and CNN News, although, I
have to believe that one of the most notable endorsements of all was
from a middle school student named Jessie, who said of the Liberty Bill
project: ``A fantastic learning experience, the Liberty Bill has
inspired me to pursue politics like never before.''
Because of their work and dedication, the impact of the Liberty Bill
project on the education of our students can be felt nationwide. A
remarkable 21 schools, representing seven states, have also joined
their effort, ranging from Bedwell Elementary School in New Jersey and
Festus High School in Festus, MO, to Dickinson High School in North
Dakota and Newcastle Middle School in Wyoming.
The students have taken their effort all the way to Capitol Hill. The
Liberty Bill Act, H.R. 903, introduced in the 106th Congress eventually
secured 107 consponsors and was supported by leadership on both sides
of the aisle, including Speaker Hastert, Majority Leader Armey,
Majority Whip DeLay, and Minority Leader Gephardt. In addition, eight
Committee Chairmen and 3 Ranking Members endorsed the Liberty Bill
proposal. I am confident that under the guidance of Congressman Cantor,
the Liberty Bill will enjoy even more success during the 107th Congress
in the House of Representatives and I am looking forward to working
with my colleagues to secure the Liberty Bill's success in the Senate.
Last February, I had the opportunity to attend a Liberty Bill Project
presentation performed by students from the Patrick Henry High School
of Ashland, VA. I cannot tell you how encouraging it is to see a group
of young people who really get, who realize how important a full
understanding of our Constitution is and the values it represents. Not
only was this presentation one of the most wholesome and inspirational
I have seen, it convinced me that the Liberty Bill Project is an
exemplary way of capturing our imagination and providing a major
contribution toward our understanding of our Constitution, history, and
form of government.
Therefore, it is my privilege to stand here today, joining my
colleague in the House of Representatives, Congressman Eric Cantor, and
introduce the companion legislation in the Senate. I am proud to act as
a representative for the hard work and dedication of our students and
support their efforts to teach all Americans about the importance of
the values and principles embodied by our Constitution.
Finally, I would like to take this opportunity to commend the fine
efforts of the students of Liberty Middle School and their teacher, Mr.
Randy Wright. Their success is a lesson to all of us, demonstrating
that with initiative and hard work we can easily, positively educate
Americans.
Thomas Jefferson once said, ``If a Nation expects to be ignorant and
free, in a state of civilization, it expects what never was and never
will be.'' This remarkable group of young people has shown all of us
what can be accomplished through dedication, creativity and a desire to
do what has not been done before.
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. 1225
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 ``Liberty Dollar Bill Act''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) many Americans are unaware of the provisions of the
Constitution of the United States, one of the most remarkable
and important documents in world history;
(2) a version of this important document, consisting of the
preamble, a list of the Articles, and the Bill of Rights,
could easily be placed on the reverse side of the $1 Federal
reserve note;
(3) the placement of this version of the Constitution on
the $1 Federal reserve note, a unit of currency used daily by
virtually all Americans, would serve to remind people of the
historical importance of the Constitution and its impact on
their lives today; and
(4) Americans would be reminded by the preamble of the
blessings of liberty, by the Articles, of the framework of
the Government, and by the Bill of Rights, of some of the
historical changes to the document that forms the very core
of the American experience.
SEC. 3. REDESIGN OF REVERSE SIDE OF THE BILL.
(a) In General.--Section 5114 of title 31, United States
Code, is amended by adding at the end the following new
subsection:
``(d) Liberty Dollar Bills.--
``(1) In general.--In addition to the requirements of
subsection (b) (relating to the inclusion of the inscription
`In God We Trust' on all United States currency) and the
eighth undesignated paragraph of section 16 of the Federal
Reserve Act, the design of the reverse side of the $1 Federal
reserve notes shall incorporate the preamble to the
Constitution of the United States, a list of the Articles of
the Constitution, and a list of the first 10 amendments to
the Constitution.
``(2) Design--Subject to paragraph (3), the preamble of the
Constitution of the United States, the list of the Articles
of the Constitution, and the first 10 amendments to the
Constitution shall appear on the reverse side of the $1
Federal reserve note, in such form as the Secretary deems
appropriate.
``(3) Authority of secretary.--The requirements of this
subsection shall not be construed as--
``(A) prohibiting the inclusion of any other inscriptions
or material on the reverse side of the $1 Federal reserve
note that the Secretary may determine to be necessary or
appropriate; or
``(B) limiting any other authority of the Secretary with
regard to the design of the $1 Federal reserve note,
including the adoption of any design features to deter the
counterfeiting of United States currency.''.
[[Page S8126]]
(b) Date of Application.--The amendment made by subsection
(a) shall apply to $1 Federal reserve notes that are first
placed into circulation after December 31, 2001.
Mr. WARNER. Mr. President, I am deferring to my junior colleague from
Virginia and am pleased to be an original cosponsor of legislation
introduced by Senator Allen to place actual language from the
Constitution on the back of the one dollar bill.
This legislation is related to a bill I introduced last year based on
the idea of students at Liberty Middle School in Ashland, Va. Working
with their teacher, Randy Wright, this began as a school project
several years ago. I commend these students and Mr. Wright for their
continued dedication on seeing this idea realized.
If you would think for a minute about the circulation of one dollar.
it is fascinating to imagine how many people this message will reach,
just how many hands a dollar will pass through even in just one year.
Moreover, I believe this initiative exemplifies many of the principles
laid out in the Constitution and the people's role in our government.
The Constitution is our Nation's most noble achievement. It embodies
the freedoms and liberties we enjoy as Americans, and gives value and
meaning to the laws by which we live. I agree with the students of
Liberty Middle School that the Constitution belongs to the people. It
should be in their hands.
I am pleased to support this important initiative.
____
By Mr. CAMPBELL:
S. 1226. A bill to require the display of the POW/MIA flag at the
World War II memorial, the Korean War Veterans Memorial, and the
Vietnam Veterans Memorial; to the Committee on the Judiciary.
Mr. CAMPBELL. Mr. President, today I introduce the POW/MIA Memorial
Flag Act of 2001. I am pleased to be joined by my friend and colleague
Senator Allard as an original co-sponsor.
I want to begin my statement today describing a powerful and
emotional sight that moves us to the core of our faith and beliefs
about America and about those who served in the Armed Forces of our
Nation.
Many of us have visited one or more of the military academies that
train America's future military leaders. These academies have varied
missions and yet all of them share in the critical task of developing
leaders for their particular branch of service. On the grounds of each
academy is a chapel, spectacular places that are easily identifiable as
places of worship.
In each chapel, a place has been reserved for those prisoners of war
and the missing in action from each particular service. A pew has been
set aside and marked by a candle, a powerful symbol that not all have
returned from battle. These hallowed places have been set aside so that
all POW's and MIA's are remembered with dignity and honor. It is a
moving and emotional experience to pause at these reserved pews, to be
encouraged by the burning candle, to recall the valor and sacrifice of
those soldiers, sailors, marines, and pilots and to be inspired today
by what they have done.
Yes, I believe we can and should do more to honor the memory of all
the POW's and MIA's who have so gallantly served our nation.
Therefore, today I am introducing the POW/MIA Memorial Flag Act of
2001. This act would require the display of the POW/MIA flag at the
World War II Memorial, the Korea War Veterans Memorial, and the Vietnam
Veterans Memorial, all here in the Nation's Capital, on any day on
which the United States flag is displayed.
Congress has officially recognized the POW/MIA flag. Displaying this
flag would be a powerful symbol to all Americans that we have not
forgotten, and will not forget.
As my colleagues well know, the United States has fought in many
wars, and thousands of Americans who served in those wars were captured
by the enemy or listed as missing in action. In 20th century wars
alone, more than 147,000 Americans were captured and became prisoners
of war; of that number more than 15,000 died while in captivity. When
we add to the number those who are still missing in action, we realize
that more can be done to honor their commitment to duty, honor, and
country.
The display of the POW/MIA flag would be a forceful reminder that we
care not only for them, but also for their families who personally
carry with them the burden of sacrifice. We want them to know that they
do not stand alone, that we stand with them and beside them, as they
remember the loyalty and devotion of those who served.
As a veteran who served in Korea, I personally know that the
remembrance of another's sacrifice in battle is one of the highest and
most noble acts we can do. Let us now demonstrate our indebtedness and
gratitude for those who served that we might live in freedom.
Just as those special reserved pews in the chapels of the military
academies recall the spirit and presence of our POW's and MIA's, so too
will the display of their flag over the World War II Memorial, the
Korean War Veterans Memorial, and the Vietnam Veterans Memorial be a
special reminder that we have not forgotten, and will not forget. This
coming September 21, 2001, is National POW/MIA Recognition Day. I
invite my Senate colleagues to please join me in passing this bill by
then to display the POW/MIA flag on this special day.
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. 1226
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 ``POW/MIA Memorial Flag Act of
2001''.
SEC. 2. DISPLAY OF POW/MIA FLAG AT WORLD WAR II MEMORIAL,
KOREAN WAR MEMORIAL, AND VIETNAM VETERANS
MEMORIAL.
(a) Requirement for Display.--Subsection (d)(3) of section
902 of title 36, United States Code, is amended by striking
``The Korean War Veterans Memorial and the Vietnam Veterans
Memorial'' and inserting ``The World War II memorial, the
Korean War Veterans Memorial, and the Vietnam Veterans
Memorial''.
(b) Days for Display.--Subsection (c)(2) of that section is
amended--
(1) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(2) by inserting before subparagraph (B), as so
redesignated, the following new subparagraph (A):
``(A) in the case of display at the World War II memorial,
Korean War Veterans Memorial, and Vietnam Veterans Memorial
(required by subsection (d)(3) of this section), any day on
which the United States flag is displayed;''.
(c) Display on Existing Flagpole.--No element of the United
States Government may construe the amendments made by this
section as requiring the acquisition of erection of a new or
additional flagpole for purposes of the display of the POW/
MIA flag.
______
By Mr. THURMOND (for himself and Mr. Hatch):
S. 1228. A bill to amend title 18, United States Code, to authorize
pilot projects under which private companies in the United States may
use Federal inmate labor to produce items that would otherwise be
produced by foreign labor, to revise the authorities and operations of
Federal Prison Industries, and for other purposes; to the Committee on
the Judiciary.
Mr. THURMOND. Mr. President, I rise today to introduce legislation
that would comprehensively reform Federal Prison Industries or UNICOR.
It would eliminate the preference that Prison Industries currently has
to make products for the Federal Government, while for the first time
allowing private companies to partner with FPI for inmate labor. These
changes would benefit all interested parties without endangering this
essential inmate work program. I am pleased to have Senator Hatch as an
original cosponsor for this important bill.
FPI is a self-sufficient government corporation that provides work
for over 20,000 inmates in the Federal Bureau of Prisons. This program
is critical to keeping inmates productively occupied, which helps keep
prisons safe for staff, inmates, and the public. At the same time,
inmates learn important job skills that they can use when they return
to society. FPI has been proven to be the best prison program in
helping prevent inmates from returning to a life of crime. It does all
of this without costing any taxpayer money.
Prison Industries is an especially critical program today as the
inmate
[[Page S8127]]
population continues to grow dramatically. The number of Federal
prisoners has doubled since 1989, and is continuing to grow every year.
For the Bureau of Prisons to maintain just 25 percent of the work-
eligible inmates in FPI, it must produce more and more products to keep
its growing population working and occupied.
Since it was created in 1934, Prison Industries has had the authority
to sell products only to Federal agencies and not to the private
sector. In return, Federal agencies generally must purchase items that
FPI makes, if it can provide them on time and at competitive prices.
This is known as the mandatory source requirement.
The equity of mandatory source has been debated for years. I believe
that we should resolve this issue once and for all in this Congress by
eliminating this governmental preference. However, we should do so in a
way that will maintain, not destroy, this successful work program.
The preference that FPI currently has regarding the Federal market is
essential as long as Prison Industries is only permitted to sell
products to Federal agencies. However, Prison Industries can do much
more and actually be a partner with the private sector if it has the
opportunity. Thus, this bill would eliminate the mandatory source
requirement, and it would allow private businesses to contract with FPI
for inmates to make the company's products in the commercial market,
both domestically and overseas.
One of the most promising areas for prison labor today is overseas
markets where American companies simply cannot compete today.
Economists, including respected labor expert Professor Richard Freeman,
have argued that one of the best uses of prison labor is to produce
goods that are not made in the United States, such as toys. This could
help the American economy by bringing jobs back that we have lost. Of
course, if prisoners make products that are not made in the United
States, they are not displacing American workers. However, jobs would
not only be created in prisons but also in the private sector. Private
companies would provide raw materials, transport goods, and otherwise
supplement the prison labor. This is a creative way to bring
back industries whose entire economic support structure is overseas.
Also, this could prove to help FPI reduce its need to make the type
of products that it makes today while keeping inmates just as busy. It
would also make the work experience for the inmates even more practical
if they were making products for the private companies. Thus, the
legislation would permit private companies to contract with FPI to
provide the labor to make products that are otherwise being made by
foreign labor outside the United States, and pay the inmates at the
current prison industry wages.
We must keep in mind that FPI has hidden burdens that increase its
labor costs. Inmates are significantly less productive than private
workers for various reasons including limited skills, less education,
and the security needs at prisoner work areas. Nevertheless, under this
legislation, when FPI contracted with private companies domestically,
it would pay inmates the same as private employees who do the same type
of work in the area. These ``comparable locality wages'' are identical
to the wages that state prison industry work programs provide today. As
under state prison work programs, the pay could never be below the
Federal minimum wage.
The additional money that inmates would earn under these new higher
wages would be used to help pay debts that the inmate owes to society,
such as more restitution to victims and child support obligations.
Also, if funds were available, inmates would reimburse the government
for a portion of their room and board costs.
Further, the bill would increase the size of the Prison Industries
Board of Directors to provide greater representation, including members
recommended by the Senate and House leadership. Also, decisions about
whether a product is otherwise being made by foreign workers outside
the United States would be determined by an independent panel, separate
from the Prison Industries Board. This panel would consist of
representatives of the Departments of Commerce and Labor, as well as
labor unions and the business community.
The cornerstone of the legislation is that the mandatory source
requirement would be eliminated, which is a change that has long been
sought by certain business and labor interests. The bill would phase it
out over five years to permit a smooth transition and prevent any major
disruptions in inmate labor programs. However, during this period, FPI
would be prohibited from expanding beyond its current mandatory source
levels in any existing federal market.
I believe that this bill represents comprehensive, fundamental reform
of Prison Industries. It would not be an easy task for Prison
Industries to transform its market, as this bill would require.
However, I think this legislation constitutes a fair and equitable
compromise for this longstanding issue. It eliminates the mandatory
source once and for all. At the same time, it creates new markets for
prison labor, especially overseas markets where America simply cannot
compete today.
It is time that we took an entirely new approach toward the issue of
prison labor. We have the opportunity to move Prison Industries into
the new century as a new, dynamic partner with the private sector. I
encourage my colleagues to join me and Senator Hatch in supporting this
bold reform initiative.
I ask unanimous consent that the text of the bill and a section by
section analysis be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1228
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 ``Federal Inmate Work Act of
2001''.
SEC. 2. AUTHORITY TO CARRY OUT PILOT PROJECTS USING FEDERAL
INMATE LABOR TO REPLACE FOREIGN LABOR.
(a) Foreign Labor Substitute Pilot Projects Authorized.--
Chapter 85 of title 18, United States Code, is amended in
section 1761--
(1) in subsection (b), by striking ``This chapter'' and
inserting ``This section'';
(2) in subsection (c), by striking ``this chapter'' and
inserting ``this section'';
(3) by redesignating subsection (d) as subsection (f); and
(4) by adding after subsection (c) the following new
subsections:
``(d) This section shall not apply to goods, wares, or
merchandise manufactured, produced, or mined by convicts or
prisoners who are participating in industrial operations of
Federal Prison Industries.
``(e) This section shall not apply to goods, wares, or
merchandise manufactured, produced, or mined by convicts or
prisoners who are participating in any pilot project approved
as a foreign labor substitute by the Foreign Labor Substitute
Panel established under section 1762.''.
(b) Foreign Labor Substitute Panel.--(1) Section 1762 of
such chapter is amended to read as follows:
``Sec. 1762. Foreign Labor Substitute Panel
``(a) The Attorney General shall establish a panel to be
known as the Foreign Labor Substitute Panel (in this section
referred to as the `Panel').
``(b) The Panel shall be composed of eight members, each of
whom shall serve at the pleasure of the Attorney General, and
who shall be appointed by the Attorney General as follows:
``(1) One member who shall be an officer, employee, or
other representative of the Department of Commerce.
``(2) One member who shall be an officer, employee, or
other representative of the Department of Labor.
``(3) One member who shall be an officer, employee, or
other representative of the International Trade Commission.
``(4) One member who shall be an officer, employee, or
other representative of the Small Business Administration.
``(5) Two members, each of whom shall be an officer,
employee, or other representative of the business community.
``(6) Two members, each of whom shall be an officer,
employee, or other representative of organized labor.
``(c)(1) Members of the Panel shall not receive pay,
allowances, or benefits by reason of their service on the
Panel.
``(2) Each member 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.
``(d) The Panel shall review proposals for pilot projects
submitted to the Panel. For each proposal reviewed, the Panel
shall approve the pilot project as a foreign labor substitute
if, and only if, the Panel determines that the pilot project
specified in the proposal satisfies each of the following
requirements:
``(1) The pilot project is to be carried out by one or more
private United States companies.
[[Page S8128]]
``(2) The goods, wares, or merchandise proposed to be
manufactured, produced, or mined wholly or in part by Federal
convicts or prisoners under the pilot project would otherwise
be manufactured, produced, or mined by foreign labor.
``(e) Any determination of the Panel under subsection (d)
shall be made available to the public upon request.''.
(2) In the table of sections at the beginning of such
chapter, the item relating to section 1762 is amended to read
as follows:
``1762. Foreign Labor Substitute Panel.''.
SEC. 3. RESTATEMENT AND IMPROVEMENT OF FEDERAL PRISON
INDUSTRIES PROGRAM.
(a) In General.--Sections 4121, 4122, and 4123 of title 18,
United States Code, are amended to read as follows:
``Sec. 4121. Federal Prison Industries: status, mission, and
management
``(a) Status.--Federal Prison Industries is a Government
corporation. The headquarters of the corporation is in the
District of Columbia.
``(b) Mission.--The mission of Federal Prison Industries is
to carry out industrial operations in accordance with this
chapter using eligible inmate workers.
``(c) Board of Directors.--
``(1) Composition.--Federal Prison Industries is
administered by a board of directors composed of 12 members
appointed by the Attorney General as follows:
``(A) One member appointed from among individuals
recommended by the Speaker of the House of Representatives.
``(B) One member appointed from among individuals
recommended by the minority leader of the House of
Representatives.
``(C) One member appointed from among individuals
recommended by the majority leader of the Senate.
``(D) One member appointed from among individuals
recommended by the minority leader of the Senate.
``(E) Two members who shall be representatives of the
business community.
``(F) Two members who shall be representatives of organized
labor.
``(G) One member who shall be representative of victims of
crime.
``(H) One member who shall be representative of the
prisoner rehabilitation community.
``(I) Two members whose background or expertise the
Attorney General considers appropriate.
``(2) Terms.--
``(A) Except as provided in this paragraph, each member
shall be appointed for a term of four years.
``(B) As designated by the Attorney General at the time of
appointment, of the members first appointed--
``(i) 3 members shall be appointed for terms of 1 year;
``(ii) 3 members shall be appointed for terms of 2 years;
``(iii) 3 members shall be appointed for terms of 3 years;
and
``(iv) 3 members shall be appointed for terms of 4 years.
``(C) Any member appointed to fill a vacancy occurring
before the expiration of the term for which the member's
predecessor was appointed shall be appointed only for the
remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office. A vacancy in the Board shall be filled in the manner
in which the original appointment was made.
``(3) Compensation.--A member of the Board may not receive
pay, allowances, or benefits by reason of his or her service
on the Board.
``(4) Quorum.--Seven members of the Board constitutes a
quorum but a lesser number may hold hearings.
``(5) Chair.--The Chair of the Board is elected by the
members.
``Sec. 4122. Federal Prison Industries: operating objectives,
standards, and requirements
``(a) Operating Objectives.--Federal Prison Industries
shall carry out its industrial operations so as to achieve
each of the following objectives:
``(1) To increase public safety by reducing the rate of
recidivism by providing as many inmates as possible with an
opportunity to gain meaningful employment and vocational
skills and improve their chances of becoming productive and
law-abiding citizens after release from prison.
``(2) To minimize any adverse effects of the operations on
domestic companies or workers.
``(3) To provide meaningful employment and vocational
training for not less than 25 percent of eligible inmate
workers.
``(4) To provide inmate workers with a source of income
with which they may facilitate their ability to contribute to
the discharge of their financial obligations.
``(5) To generate sufficient revenue to fund those
operations.
``(6) To provide products and services that are market
quality and competitively priced.
``(b) Performance Standards.--Federal Prison Industries
shall carry out its industrial operations in compliance with
the following standards, as applicable to correctional
industry programs:
``(1) United Nations standards.
``(2) International Labor Organization conventions to which
the United States is a signatory party.
``(3) Federal standards.
``(4) American Correctional Association standards.
``(c) Voluntariness.--Federal Prison Industries shall carry
out its industrial operations only with inmate workers who
participate in those operations voluntarily.
``(d) Wage Rates.--Unless otherwise provided by law, each
inmate worker participating in the industrial operations of
Federal Prison Industries shall be paid at a wage rate
prescribed by the Board of Directors of Federal Prison
Industries.
``(e) Protection of Certain Information.--Federal Prison
Industries shall carry out its industrial operations so as to
ensure that, in the production of a product or the
performance of a service, inmate workers do not have access
to--
``(1) personal or financial information about any citizen
of the United States without prior notice of the access being
provided to that citizen, including information relating to
the citizen's real property, however described, unless that
information is publicly available; or
``(2) information that is classified in the national
security or foreign policy interests of the United States.
``(f) Vocational Training.--At the end of each fiscal year,
Federal Prison Industries shall, if the Board of Directors
determines that it is financially feasible to do so,
contribute not less than 20 percent of its net profits for
that fiscal year to provide for the vocational training of
inmates without regard to their industrial or other
assignments.
``(g) Exemption From Public Contracting and Procurement
Laws.--Federal Prison Industries is exempt from all laws and
regulations governing public contracting and the procurement
of property or services by an agency of the Federal
Government.
``(h) Liability.--The sole remedy for injury, death, or
loss resulting from negligence in the design or production of
a product, or in the performance of a service, by Federal
Prison Industries shall be as follows:
``(1) In the case of a person suffering an injury, death,
or loss in the performance of duties as an employee of the
United States, chapter 81 of title 5, relating to
compensation for work-related injuries.
``(2) In all other cases, chapter 171 of title 28, relating
to tort claims.
``(i) Deductions From Wages.--
``(1) In general.--Subject to the other provisions of this
subsection, the Board of Directors may deduct and withhold
amounts from the wages paid to a Federal Prison Industries
inmate worker and disburse those amounts for the following:
``(A) Payment of fines, special assessments, restitution to
the victim, and any other restitution owed by the inmate
worker pursuant to court order.
``(B) Allocations for support of the inmate worker's family
under law, court order, or agreement by the inmate worker.
``(C) Reasonable charges for costs of incarceration, as
determined by the Board of Directors.
``(D) Contributions to any fund established by law to
compensate the victims of crime.
``(E) Amounts to be held on account and paid to the inmate
worker upon release from the custody of the Bureau of
Prisons.
``(2) Limitation.--The total of all amounts deducted and
withheld from the pay of an inmate worker for a pay period
may not exceed--
``(A) 80 percent of gross pay, in the case of an inmate
worker specified in section 4123(d)(2); or
``(B) 50 percent of gross pay, in the case of any other
inmate worker.
``(3) Exception.--The total specified in paragraph (2) may,
with the consent of an inmate worker, exceed the limitation
in paragraph (2)(A) or (2)(B), as applicable, if the amounts
in excess of such limitation are for the purposes described
in subparagraphs (B) or (E) of paragraph (1).
``(4) Agreement of inmate worker required.--Amounts may not
be deducted, withheld, or disbursed under this subsection
unless the inmate worker concerned has agreed in advance to
the deduction, withholding, or disbursement of those amounts.
``Sec. 4123. Federal Prison Industries: transactions
authorized
``(a) Sales to Agencies and Not-for-Profits.--Federal
Prison Industries may sell products and services to
government agencies and not-for-profit organizations.
``(b) Sales of Certain Commodities.--Federal Prison
Industries may carry out a program to manufacture commodities
specified in section 1761(b).
``(c) Participation in Foreign Labor Substitute Pilot
Projects.--Subject to the requirements in subsection (e),
Federal Prison Industries may make available inmate workers
for participation in a pilot project approved as a foreign
labor substitute by the Foreign Labor Substitute Panel, as
referred to in section 1761(e).
``(d) Participation in BJA Pilot Projects.--
``(1) In general.--Subject to the requirements in
subsection (e), Federal Prison Industries may make available
inmate workers for participation in a pilot project
designated by the Director of the Bureau of Justice
Assistance, as referred to in section 1761(c).
``(2) Wage rate.--Each inmate worker participating in a
pilot project specified in paragraph (1) shall be paid at a
wage rate that complies with section 1761(c).
``(e) Requirements for Contracts With Private Companies.--
In making available
[[Page S8129]]
inmate workers for participation in a pilot project under
subsection (c) or (d), Federal Prison Industries shall comply
with the following requirements:
``(1) The inmate workers shall be made available through a
contract between Federal Prison Industries and a private
United States company.
``(2) The contract shall--
``(A) require that the labor performed by the inmate
workers shall be carried out at a Federal Prison Industries
facility;
``(B) include a clause that prohibits the company from
displacing any of that company's existing domestic workers as
a direct result of the contract with Federal Prison
Industries; and
``(C) provide that any workforce reductions carried out by
the company affecting employees performing work comparable to
the work performed pursuant to the contract shall first apply
to inmate workers employed pursuant to the contract.
``(f) Goals for Certain Businesses.--Federal Prison
Industries shall, in consultation with the Small Business
Administration, establish and strive to meet or exceed
realistic goals for entering into contracts with one or more
of the following:
``(1) A business concern that meets the applicable size
standards prescribed pursuant to section 3(a) of the Small
Business Act (15 U.S.C. 632(a)).
``(2) A small business concern owned and controlled by
socially and economically disadvantaged individuals, as that
term is defined in section 8(d)(3)(C) of the Small Business
Act (15 U.S.C. 637(d)(3)(C)).
``(g) Job Opportunities for Blind and Severely Disabled
Individuals.--Federal Prison Industries shall establish
business partnerships with organizations representing
domestic workers who are blind or severely disabled, for the
purpose of entering into contracts with private United States
companies that would create job opportunities both for blind
and severely disabled individuals and for Federal inmates.
``(h) Donation of Products and Services.--The Board of
Directors may authorize--
``(1) the donation of a product or service of Federal
Prison Industries that is available for sale; or
``(2) the production of a new product, or the performance
of a new service, for donation.
``(i) Catalog.--Federal Prison Industries shall publish and
maintain a catalog of all products and services that it
offers for sale to government agencies and not-for-profit
organizations. The catalog shall be periodically revised as
products and services are added or deleted.''.
(b) Conforming Amendment.--Section 1761(c)(1) of such title
is amended by striking ``non-Federal''.
(c) Clerical Amendment.--The table of sections at the
beginning of chapter 307 of such title is amended by striking
the items relating to sections 4121, 4122, and 4123 and
inserting the following:
``4121. Federal Prison Industries: status, mission, and management.
``4122. Federal Prison Industries: operating objectives, standards, and
requirements.
``4123. Federal Prison Industries: transactions authorized.''.
SEC. 4. ELIMINATION OF MANDATORY SOURCE PURCHASE REQUIREMENT.
(a) In General.--Section 4124 of title 18, United States
Code, is amended--
(1) in subsection (a), by adding at the end the following:
``This subsection does not apply to services.'';
(2) by amending subsection (c) to read as follows:
``(c) Each Federal department or agency shall report
purchases from Federal Prison Industries to the Federal
Procurement Data System (referred to in section 6(d)(4) of
the Office of Federal Procurement Policy Act (41 U.S.C.
405(d)(4))) in the same manner as it reports to such System
any acquisition in an amount in excess of the simplified
acquisition threshold (as defined in section 4(11) of that
Act (41 U.S.C. 403(11))).''; and
(3) by amending subsection (d) to read as follows:
``(d)(1) The head of a Federal department or agency may
purchase directly from Federal Prison Industries any of the
following:
``(A) Any products with respect to which the requirement in
subsection (a) has, under any authority, been suspended,
waived, or not invoked.
``(B) Any services.
``(2) A purchase under this subsection may be made in any
quantity and by any method that is determined appropriate by
the head of the agency making the purchase without regard to
any provision of law or regulation.''.
(b) Plan for Phased Elimination of Mandatory Source.--Not
later than 180 days after the date of the enactment of this
Act, the Board of Directors shall submit to Congress a plan
for the elimination of the requirement of section 4124(a) of
title 18, United States Code. The plan shall provide for the
following:
(1) Annual reductions in the total sales that are made by
Federal Prison Industries under the requirement.
(2) A prohibition on any interim significant expansion of
sales under the requirement above levels authorized by the
Board of Directors of Federal Prison Industries for such
sales before the date of the enactment of this Act.
(3) A prohibition on sales under the requirement after the
date that is five years after the date on which the plan is
submitted to Congress under this section.
(c) Public Availability of Plan.--Not later than 30 days
after the date on which the plan is submitted to Congress
under this section, Federal Prison Industries shall publish
the plan in a commercial business publication with a national
circulation. Federal Prison Industries shall make copies of
the plan available to the public upon request.
(d) Repeal of Mandatory Source Requirement.--Effective on
the date that is 5 years after the date on which the plan is
submitted to Congress under this section, section 4124 of
title 18, United States Code, is amended--
(1) by striking subsections (a) and (b); and
(2) by amending subsection (d)(1)(A) to read as follows:
``(A) Any products.''.
SEC. 5. PERIODIC EVALUATION AND REPORTS.
(a) In General.--Section 4127 of title 18, United States
Code, is amended to read as follows:
``Sec. 4127. Periodic evaluation and reports
``(a) Evaluation by GAO.--
``(1) Matters evaluated.--The Comptroller General shall
provide for an independent evaluation of the operations of
Federal Prison Industries to be carried out each year. The
matters evaluated shall include the following:
``(A) The overall success of the operations.
``(B) The effects that any reduction in the purchases made
under section 4124(a) has on the viability of Federal Prison
Industries.
``(C) The extent to which Federal Prison Industries can
successfully contract with private companies without
adversely affecting domestic companies or workers.
``(2) Views included.--The Comptroller General shall ensure
that, in the development of appropriate methodologies for the
evaluation under paragraph (1), the views of the Foreign
Labor Substitute Panel, private industry, organized labor,
the Board of Directors of Federal Prison Industries, and the
public are solicited.
``(3) Report.--Not later than March 31 of each fiscal year,
the Comptroller General shall submit to Congress a report on
the evaluation of the operations of Federal Prison Industries
that was carried out under paragraph (1) for the preceding
fiscal year. The report for a fiscal year shall, at a
minimum, include the following:
``(A) The evaluation.
``(B) Any concerns raised about any adverse effects on
domestic companies or workers, together with any actions
taken in regard to the concerns.
``(C) The extent to which Federal Prison Industries
maintained at least a 25 percent employment rate for eligible
inmate workers.
``(D) The extent to which Federal Prison Industries
conducted its operations on a financially self-sustaining
basis.
``(E) Any recommended legislation to improve the
administration of this chapter or the effects of the
administration of this chapter, including any recommended
legislation necessary to authorize remedial actions
regarding--
``(i) any conduct of the operations of Federal Prison
Industries in a manner that adversely affects domestic
companies or workers (excluding the effects of normal
competitive business practices);
``(ii) any failure of Federal Prison Industries to maintain
at least a 25 percent employment rate for eligible inmate
workers; or
``(iii) any failure of Federal Prison Industries to conduct
its operations on a financially self-sustaining basis.
``(b) Annual Report by Board of Directors.--
``(1) In general.--The Board of Directors of Federal Prison
Industries shall, each year, report under section 9106 of
title 31 on the conduct of the business of Federal Prison
Industries and the condition of its funds during the
preceding fiscal year.
``(2) Matters included.--In addition to the matters
required by section 9106 of title 31, and such other matters
as the Board considers appropriate, each report for a fiscal
year under paragraph (1) shall include the following:
``(A) A statement of the amount of obligations issued under
section 4129(a)(1) of this title during that fiscal year.
``(B) An estimate of the amount of obligations that will be
issued under that section during the following fiscal year.
``(C) An analysis of--
``(i) the total sales by Federal Prison Industries for each
product and service sold to Federal agencies and to private
United States companies;
``(ii) the total purchases by each Federal agency of each
product and service; and
``(iii) The Federal Prison Industries share of the total
Federal Government purchases by product and service.
``(D) An analysis of the inmate workforce, including--
``(i) the number of inmates employed;
``(ii) the number of inmates used to produce products or
perform services sold to private United States companies;
``(iii) the number and percentage of employed inmates,
categorized by term of incarceration; and
``(iv) the various hourly wages paid to inmates engaged in
the production of the various products and the performance of
services authorized for production and sale to
[[Page S8130]]
Federal agencies and to private United States companies.
``(E) Information concerning any employment obtained by
former inmates upon release that is useful in determining
whether the employment provided by Federal Prison Industries
during incarceration provided those former inmates with
knowledge and skill in a trade or occupation that enabled
them to earn a livelihood upon release.
``(3) Availability to public.--The Board of Directors shall
make available to the public each report under this
subsection.''.
(b) Clerical Amendment.--In the table of sections at the
beginning of chapter 307 of such title, the item relating to
section 4127 is amended to read as follows:
``4127. Periodic evaluation and reports.''.
SEC. 6. RULES OF CONSTRUCTION AND DEFINITIONS.
(a) In General.--Chapter 307 of title 18, United States
Code, is amended by adding at the end the following:
``Sec. 4130. Construction of provisions
``Nothing in this chapter shall be construed--
``(1) to establish an entitlement of any inmate to--
``(A) employment in a Federal Prison Industries facility;
or
``(B) any particular wage, compensation, or benefit on
demand;
``(2) to establish that inmates are employees for the
purposes of any law or program; or
``(3) to establish any cause of action by or on behalf of
any person against the United States or any officer,
employee, or contractor thereof.
``Sec. 4131. Definitions
``In this chapter:
``(1) The term `eligible inmate worker' means a person
who--
``(A) is committed to the custody of the Bureau of Prisons
pursuant to section 3621 of this title;
``(B) is designated to a low, medium, or high security
facility operated by the Bureau of Prisons; and
``(C) is physically and mentally able to work.
``(2) The term `private United States company' means a
corporation, partnership, joint venture, or sole
proprietorship with a principal place of business in the
United States.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 307 of such title is amended by adding
at the end the following new items:
``4130. Construction of provisions.
``4131. Definitions.''.
SEC. 7. CONFORMING AMENDMENT.
Section 436 of title 18, United States Code, is amended by
striking ``Whoever,'' and inserting ``Except as otherwise
provided in this title, whoever,''.
____
Federal Inmate Work Act of 2001 Section-by-Section Analysis
section 1. short title
This Act may be cited as the ``Federal Inmate Work Act of
2001.''
section. 2. authority to carry out pilot projects using federal inmate
labor to replace foreign labor
(a) Foreign Labor Substitute Pilot Projects
This section authorizes Federal Prison Industries, FPI or
trade name UNICOR, to carry out pilot projects to produce
products for private companies that would otherwise be
produced by foreign labor. FPI currently has authority to
perform commercial market services, but not for products. The
interstate commerce restrictions contained in 18 U.S.C. 1761
concerning products are deemed not to apply to such projects
when the provisions below are met.
(b) Foreign Labor Substitute Panel
This section establishes a Foreign Labor Substitute Panel,
selected by the Attorney General. The Panel is to consist of
eight members. In order to ensure that there is
representation from those with expertise in the affected
areas, this section provides that the Panel must be comprised
of one representative from the Department of Commerce, the
Department of Labor, the International Trade Commission, and
the Small Business Administration; two representatives from
the business community; and two representatives from
organized labor. The Panel is not to receive pay, benefits,
or allowances for their services, but may receive travel
expenses. Any findings of the Panel must be made available to
the public.
This section requires the Panel to review proposals for
pilot projects. The Panel is authorized to approve a pilot
project if, and only if, the Panel determines that: 1. the
pilot will be carried out by one or more United States
companies and 2. the goods, wares or merchandise proposed
under the pilot would otherwise be manufactured, produced or
mined by foreign labor.
Section 3. Restatement and Improvement of Federal Prison Industries
Program
Sec. 4121. Federal Prison Industries: status, mission, and
management
(a) Status
This section states FPI's status as a government
corporation, whose headquarters is located in the District of
Columbia.
(b) Mission
This section states that FPI's mission is to carry out
industrial operations in accordance with the parameters of
this section.
(c) Board of Directors
FPI's current statute provides for six Presidentially
appointed Board of Directors who represent industry, labor,
agriculture, retailers and consumers, the Secretary of
Defense and the Attorney General. This section substitutes
the Attorney General for the President and expands FPI's
Board of Directors from the current six members to twelve
members to increase representation from business, organized
labor, victims of crime, and the inmate rehabilitation
community. Four members would be required to be selected from
the recommendations of the House and Senate majority and
minority leadership. The Board also must include two
representatives from the business community, two from
organized labor, one member representing victims of crime,
one representing prisoner rehabilitation community, and two
additional members whose background and expertise the
Attorney General deems appropriate.
This section continues the current provision that the Board
of Directors serve without pay, allowances, or benefits. The
members of the Board shall serve for a four year term or
until the remainder of a four year term if a member is
replaced. Seven board members constitute a quorum. The term
limits for the first appointments are varied in order to
provide for term limits that are staggered. The Chairman of
the Board is to be elected by members of the Board.
Sec. 4122. Federal Prison Industries: operating objectives,
standards, and requirements
(a) Operating Objectives
This section requires that FPI's operations be conducted so
as to: 1. increase public safety and reduce recidivism by
providing meaningful employment and vocational skills, 2.
minimize adverse effects on domestic companies or workers, 3.
provide meaningful employment and vocational training for not
less than 25 percent of eligible inmate workers, 4. provide
income so as to help inmates pay their financial obligations,
5. generate sufficient revenue to fund the corporation, and
6. provide market quality and competitively priced products
and services.
(b) Performance Standards
This section requires FPI to comply with standards, as
applicable to correctional industry programs, including:
United Nations standards, and International Labor
Organization Conventions to which the United States is a
signatory party, Federal standards, and American Correctional
Association Standards.
(c) Voluntariness
This section requires that inmates participate in FPI
operations voluntarily. This is currently FPI's practice.
(d) Wage Rates
This section requires that inmate workers be paid the wage
rates prescribed by the Board of Directors, unless otherwise
provided by law.
(e) Protection of Certain Information
This section prohibits inmates from having access to
personal or national security information, that is otherwise
not publicly available.
(f) Vocational Training
While FPI is authorized to fund vocational training
programs, this section specifies that where financially
feasible, FPI contribute at least twenty percent of its net
profits each year for this purpose.
(g) Exemption from Public Contracting and Procurement Laws
In order to be as competitive as possible in commercial
market ventures, this section exempts FPI from federal
procurement and public contracting requirements. This
provision is consistent with exemptions granted to other
federal agencies with commercial-like missions, such as the
U.S. Postal Service and the U.S. Mint.
(h) Liability
This section provides that personal injuries arising out of
FPI work shall be compensated pursuant to the Federal
Employees' Compensation Act, for Federal Employees, or the
Federal Tort Claims Act, for all other persons. This is
consistent with current law.
(i) Deductions from Wages
This section permits the Board of Directors to make
deductions from the amounts paid to FPI inmate workers to pay
court ordered fines, restitution, child support, to
compensate for reasonable charges for costs of incarceration,
to compensate crime victims, and for amounts to be held on
account and paid to the inmate upon release from the custody
of the BOP. With certain exceptions, the deductions may not
exceed 80 percent for FPI inmate workers being paid higher
wage rates that comply with 18 U.S.C. 1761(c), for Prison
Industry Enhancement pilot projects, or 50 percent for FPI
inmate workers being paid prison industry wage rates. Current
BOP policy permits these deductions to a maximum of 50
percent. This section requires that inmates agree in advance
to any deductions, withholdings, or disbursement of those
amounts.
Sec. 4123. Federal Prison Industries: transactions authorized
(a) Sales to Agencies and Not-For-Profits
This section permits FPI to sell its products, as well as
services (which are already authorized in the commercial
market), to government agencies and not for profit
organizations. Currently, FPI may only sell its products to
the federal government.
[[Page S8131]]
(b) Sales of Certain Commodities
This section also permits FPI to carry out programs to
manufacture commodities specified in 18 U.S.C. 1761(b)
(agricultural commodity sales, as well as commodities sold to
federal, D.C. or state entities).
(c) Participation in Foreign Labor Substitute Pilot Projects
This section authorizes FPI to participate in pilot
projects as approved by the Foreign Labor Substitute Panel.
(d) Participation in BJA Pilot Projects
This section authorizes FPI to make its products (in
addition to services which are currently authorized) for
private companies if inmates are paid a wage rate that
complies with 18 U.S.C. 1761(c). This is similar to the
authority that state prisons currently have to sell products
to the commercial market, provided the inmates are paid
comparable locality wages pursuant to the Prison Industry
Enhancement, P.I.E., Program.
(e) Requirements for Contracts with Private Companies
In FPI contracts with companies pursuant to a pilot
program, the contracts must require the inmate work to be
carried out in a FPI facility. The contract must prohibit the
private company from displacing any of its existing domestic
workers as a direct result of the contract with FPI. Any
workforce reductions carried out by the company performing
comparable work must apply first to the inmate workers
performing work under the contract.
(f) Goals for Certain Businesses
This section requires FPI, in consultation with the Small
Business Administration, to establish and strive to meet or
exceed realistic goals for entering into contracts with small
business concerns and with small business concerns owned and
controlled by socially and economically disadvantaged
individuals.
(g) Job Opportunities for Blind and Severely Disabled
Individuals
This section requires FPI to establish business
partnerships with organizations representing domestic workers
who are blind and severely disabled to create job
opportunities in furtherance of its efforts to contract with
private companies.
(h) Donation of Products and Services
FPI would be authorized to donate products or services in
the Board's discretion, which it currently cannot do.
(i) Catalog
This section requires FPI to continue to maintain a catalog
of its products and services and keep it updated.
SECTION 4. ELIMINATION OF MANDATORY SOURCE PURCHASE REQUIREMENT
This section requires FPI to phase out its use of the
mandatory source preference.
(a) In General
This section clarifies that the mandatory source preference
in section 4124 applies to products only. Neither this
section nor section 4124 require any Federal Government
agency or department to purchase services from FPI. As is
currently required by law, this section requires each Federal
department or agency to report purchases from FPI to the
Federal Procurement Data System. See 41 U.S.C. 405(d)(4).
This section further clarifies that federal entities may
continue to buy FPI products or services voluntarily and
directly from FPI, even without the mandatory source
requirement.
(b) Plan for Phased Elimination of Mandatory Source
This section requires that the Board of Directors develop
and submit a plan to Congress within 180 days after the
enactment of this Act, that would phase out mandatory source
over a five year period.
(c) Public Availability of Plan
This section requires that FPI publish the plan in a
commercial business publication with national circulation,
and make it available to the public.
(d) Repeal of Mandatory Source Requirement
Effective five years after the date the plan is submitted,
this section repeals the mandatory source requirement.
SECTION 5. PERIODIC EVALUATION AND REPORTS
Sec. 4127. Periodic evaluation and reports
(a) Evaluation by GAO
This section requires the GAO to provide for annual
evaluations to assess the continued viability of FPI and its
ability to contract with private companies without adversely
affecting domestic companies or workers. The GAO is to ensure
that the views of the Foreign Labor Substitute Panel, private
industry, organized labor, FPI's Board of Directors and the
public are sought in the development of appropriate
evaluation methodologies by which to assess the program's
overall success.
This Section also requires the GAO to report annually to
Congress its evaluation FPI's operations, to include any
concerns raised about any adverse impact on domestic
companies or workers; the extent to which FPI was able to
maintain at least a 25 percent employment rate for work
eligible inmates; the extent to which FPI was able to conduct
its operations in a financially self-sustaining manner; and
any recommended legislation, if any, for statutory changes to
improve the administration or effects of the program,
including recommended remedial actions.
(b) Annual Report by Board of Directors
This section requires FPI to report annually to Congress on
its operations and financial condition. Although the current
statute requires these annual reports, this section expands
the specific information to be included in such reports, such
as the total sales of FPI products and services to Federal
agencies and to private companies, the total purchase by
Federal agency of each product and service, and the FPI share
of the total Federal Government purchases. An analysis shall
also determine the number of inmates employed, and the number
and percentage of employed inmates in the production of
products and the performance of services authorized for
production and sale to agencies and private companies. The
report must also include information concerning any
employment obtained by former inmates upon release that is
useful in determining whether the employment provided by FPI
during incarceration provided those inmates with knowledge
and skill in a trade or occupation that enabled those inmates
to earn a livelihood upon release.
Sec. 4130. Construction of Provisions
This section is intended to preclude Federal inmates from
asserting an employee-employer relationship or other
entitlements out of their work with FPI.
SECTION 6. RULES OF CONSTRUCTION AND DEFINITIONS
Sec. 4131. Definitions
This section defines the terms used in this Act.
SECTION 7. CONFORMING AMENDMENT.
This section makes a conforming amendment.
______
By Mr. WELLSTONE (for himself and Ms. Stabenow):
S. 1229. A bill to amend the Federal Food Drug, and Cosmetic Act to
permit individuals to import prescription drugs in limited
circumstances; to the Committee on Health, Education, Labor, and
Pensions.
Mr. WELLSTONE. Mr. President, I rise to introduce legislation that
helps to correct the injustice that finds American consumers the least
likely of any in the industrialized world to be able to afford drugs
manufactured by the American pharmaceutical industry. The reason is the
unconscionable prices the industry charges only here in the United
States.
I am under no illusion that this legislation provides comprehensive
or ultimate relief to Americans who are struggling to afford the
prescription drugs they need. However, this bill does expose and
highlight the problem American consumers face and it provides a certain
measure of immediate relief for individuals struggling with the high
cost of prescription drugs.
When I return to Minnesota which I do frequently, I meet with many
constituents, but none with more compelling stories than senior
citizens struggling to make ends meet because of the high cost of
prescription drugs, life-saving drugs that are not covered under the
Medicare program. Ten or twenty years ago these same senior citizens
were going to work everyday--in the stores, and factories, and mines in
Minnesota, earning an honest paycheck, and paying their taxes without
protest. Now they wonder, how can this government, their government,
stand by, when the medicines they need are out of reach.
It is not just that Medicare does not cover these drugs. The
unfairness which Minnesotans feel is exacerbated of course by the high
cost of prescription drugs here in the United States, the same drugs
that can be purchased for frequently half the price in Canada or
Europe. These are the exact same drugs, manufactured in the exact same
facilities with the exact same safety precautions. A year ago, most
Americans did not know that the exact same drugs are for sale at half
the price in Canada. Today, you can bet the pharmaceutical industry
wishes no one knew it. But the cat is out of the bag, and it is time
for Congress to begin to address these inequities.
Legislators, especially from Northern States but also from all around
the country, have heard first-hand stories from constituents who are
justifiably frustrated and discouraged when they can't afford to buy
prescription drugs that are made in the United States, unless they go
across the border to Canada where those same drugs, manufactured in the
same facilities are available for about half the price. It is time to
codify the right of Americans to go to Canada and certain other
countries to buy the prescription drugs they need at a price they can
afford. And it is time to allow Americans to obtain those necessary
medications through the mail as well.
[[Page S8132]]
Driving to Canada every few months to buy prescription drugs at
affordable prices isn't the solution; it is a symptom of how broken
parts of our health care system are. Americans regardless of party have
a fundamental belief in fairness, and know a rip-off when they see one.
It is time to allow Americans to end-run that rip-off.
While we can be proud of both American scientific research that
produces new miracle cures and the high standards of safety and
efficacy that we expect to be followed at the FDA, it is shameful that
America's most vulnerable citizens, the chronically ill and the
elderly, are being asked to pay the highest prices in the world here in
the U.S. for the exact same medications manufactured here but sold more
cheaply overseas.
That is why today I am introducing with Senator Stabenow the Personal
Prescription Drug Import Fairness Act, a bill which will amend the
Food, Drug, and Cosmetic Act to allow Americans to legally import
prescription drugs into the United States for their personal use as
long as the drugs meet FDA's strict safety standards. With this
legislation, Americans will be able to legally purchase these FDA-
approved drugs in person or by mail at huge savings.
What this bill does is to address the absurd situation by which
American consumers are paying substantially higher prices for their
prescription drugs than are the citizens of Canada, and the rest of the
industrialized world. This bill does not create any new Federal
programs. Instead it uses principles frequently cited in both house of
the Congress, principles of open trade and competition, on a personal
level, to help make it possible for American consumers to purchase the
prescription drugs they need.
The need is clear. A recent informal survey by the Minnesota Senior
Federation on the price of six commonly used prescription medications
showed that Minnesota consumers pay, on average, nearly double, 196
percent, that paid by their Canadian counterparts. These excessive
prices apply to drugs manufactured by U.S. pharmaceutical firms, the
same drugs that are sold for just a fraction of the U.S. price in
Canada and Europe.
Now, however, Federal law allows only the manufacturer of a drug to
import it into the U.S. It is time to stop protecting the
pharmaceutical industry's outrageous profits, and they are outrageous,
and give all Americans the legal right to purchase their prescription
drugs directly from a pharmacy in a limited number of countries with
regulatory systems the FDA has found meet certain minimal standards.
Last year, the editors of Fortune Magazine, writing about 1999
pharmaceutical industry profits, noted that ``Whether you gauge
profitability by median return on revenues, assets, or equity,
pharmaceuticals had a Viagra kind of year.'' In 2000, drug company
profits were just as excessive.
Let's take a look at the numbers, so there can be no mistake:
Where the average Fortune 500 industry in the United States returned
4.5 percent profits as a percentage of revenue, the pharmaceutical
industry returned 18.6 percent.
Where the average Fortune 500 industry returned 3.3 percent profits
as a percentage of their assets, the pharmaceutical industry returned
17 percent.
Where the average Fortune 500 industry returned 14.6 percent profits
as a percentage of shareholders equity, the pharmaceutical industry
returned 29.4 percent.
Those record profits are no surprise to America's senior citizens
because they know where those profits come from, they come from their
own pocketbooks. It is time to end the price gouging.
We need every piece of legislation we can get to help assure our
Senior Citizens and all Americans that safe and affordable prescription
medications can be legally obtained from countries with a track records
of prescription drug safety. The Personal Prescription Drug Import
Fairness Act is one such step.
We all know that the giant step this Congress should be taking is the
enactment of a comprehensive Medicare prescription drug benefit. Such a
benefit should address two issues. First, Medicare beneficiaries are
entitled to a drug benefit as good as Congress provides for itself.
That means a low deductible, 20 percent copay, a cap on out-of-pocket
expenses of about $2,000, and affordable premiums. Second, we need
seriously to address the outrageously high prices that Americans are
forced to pay for prescription drugs. If we address those high prices,
we can provide a comprehensive benefit at a price that is affordable to
Medicare beneficiaries and to the Federal Government. I have already
introduced a bill, S. 925, the Medicare Extension of Drugs to Seniors
Act of 2001, that provides affordable comprehensive benefits and makes
it possible to enact them by reigning in the ever increasing cost of
pharmaceuticals using three complimentary approaches.
But, while we wait for the Finance Committee and this Congress to act
on a Medicare drug benefit, we should not lose the opportunity to
provide some needed relief. That is why I am introducing the Personal
Prescription Drug Import Fairness Act today.
This bill includes specific protections, which were not included in a
recent House-passed amendment to the Agriculture Appropriations bill.
These protections include: 1. importation for personal use only of no
more than a 3 month supply at any one time; 2. limitation on country of
origin; 3. no importation of controlled substances or biologics; 4.
requirement that imported drug be accompanied by a form prescribed by
the Secretary of HHS in consultation with the Secretary of the Treasury
that makes clear what overseas pharmacy is dispensing the drug, who
will be receiving it, and who will be responsible for the recipients
medical care with the drug in the United States.
The only things that are not protected in this bill are the excessive
profits of the pharmaceutical industry. My job as a United States
Senator is not to protect those profits but to protect the people.
Colleagues, please join in and support this thoughtful and necessary
bill that will help make prescription drugs more affordable to the
American people.
______
By Mr. FRIST (for himself and Mrs. Clinton):
S. 1230. A bill to amend the Public Health Service Act to focus
American efforts on HIV/AIDS, tuberculosis, and malaria in developing
countries; to the Committee on Foreign Relations.
Mr. FRIST. Mr. President, I rise to discuss critically important
legislation that I am introducing today along with Senator Clinton to
address the internatinal crises of HIV/AIDS, tuberculosis, and malaria.
The threats of HIV/AIDS, tuberculosis, and malaria are not strictly
American problems, they ignore national borders, threatening the entire
world. Together, these three diseases cause over 300 million illnesses
and five million death each year.
We are all aware of the chilling global impact of HIV/AIDS, 22
million have already died worldwide and more than three million in the
last year alone. Sixty million are currently infected with HIV, a
number that increases by 15,000 each day. In 2000, 2.4 million
individuals died in Africa alone.
Tuberculosis and malaria are also ravaging the developing world.
Eight million people are infected with tuberculosis each year; over two
million of whom die. There are over 400 million clinical cases of
malaria diagnosed each year, resulting in over one million deaths. Over
700,000 of those who die each year are children. Malaria is endemic to
101 countries and territories.
Not only do these three diseases produce over 50 percent of the
deaths due to infectious diseases each year, but they also have complex
disease patterns that result in them facilitating each other's spread.
By weakening the immune system, infection with HIV increases
susceptibility to both tuberculosis and malaria. Furthermore, the
increasing number of multi-resistant tuberculosis cases is largely
attributed to resistance developed in HIV-infected patients. Finally,
in treating severe anemia that commonly accompanies illness due to
malaria, untested blood transfusions create a method of HIV/AIDs
spread.
Historically, the United States has played a critical role in
addressing international crises. There is perhaps no greater crisis
that we face worldwide than the spread of deadly infectious disease.
Therefore, we must provide the leadership to confront the
[[Page S8133]]
global HIV/AIDS, malaria, and tuberculosis epidemics. History will
record how we respond to the call.
We know what is needed to reverse the epidemic. Work by community-
based organizations, both religious and secular, has been the linchpin
of grassroots success. As a surgeon, I have traveled to numerous areas
of Africa, Sudan, Kenya, the Congo, and Uganda. I have performed
operations in converted school houses and ill-equipped hospitals where
I seen first-hand the great need, and the important role, that American
involvement can play in providing hope through health education and
treatment.
We fight this battle in two ways--by improving primary prevention and
expanding access to treatment. Actions to provide drugs to developing
countries at dramatically reduced costs represent a promise to those
currently suffering from AIDS. However, access to those treatments
without appropriate health care infrastructure is a moot point. We must
support the development of effective health care delivery systems,
personnel training and infrastructure. We must also support programs
targeting affected by AIDS, such as the millions of orphans.
I have already introduced legislation with Senator Kerry, the
International Infectious Diseases Control Act of 2001. This Act would
direct the President to work with foreign governments, the United
Nations, UN, the World bank, and the private sector to establish the
Global AIDS and Health Fund to fight HIV/AIDS, malaria, and
tuberculosis. This fund would provide grants to governments and non-
governmental organizations for implementation of effective and
affordable HIV/AIDS, malaria, and tuberculosis programs, with initial
priority to programs to combat HIV/AIDS.
It is important to contribute to these international efforts not only
by providing monetary support but also our time, our energy, and our
expertise. Therefore, today Senator Clinton and I are introducing
legislation to help mobilize our Nation's public health infrastructure
in the fight against international HIV/AIDS, tuberculosis, and malaria.
The Global Leadership in Developing an Expanded Response, GLIDER,
initiative will place American health care providers in nations
confronting the epidemics of HIV/AIDS, tuberculosis, and malaria and
provide them with the tools to carry out prevention programs, care,
treatment, and infrastructure development. In addition, it will
evaluate current methods of treatment and levels of access to treatment
and enhance disease surveillance. Finally, it will increase funding for
research into treatment and vaccine development.
The GLIDER initiative expands programs administered by the
Departments of State, Health and Human Services, Defense, and Labor to
ensure that U.S. government agencies are contributing their scientific
and diplomatic expertise to the problems associated with the spread of
HIV/AIDS, malaria, and tuberculosis throughout the world.
This initiative, coordinated through the offices of the Secretary of
State and Secretary of Health and Human Services, in collaboration with
the Secretaries of Defense and Labor, targets four objectives: to
promote and expand our primary prevention efforts, improve clinic-,
community- and home-based care and treatment, provide assistance to
those individuals who are affected by such diseases such as AIDS
orphans and families, and assist with capacity and infrastructure
development.
The close partnership between the Departments of State and Health and
Human Services will be crucial in ensuring that this program is run in
complete coordination with national, regional and local initiatives,
medial and scientific experts, non-governmental organizations, and
diplomatic missions. I would like to take a moment to thank Secretary
Thompson and Secretary Powell for their personal commitment to this
issue. I know that they are working together to bring the full force of
the Administration behind the efforts to combat HIV/AIDS, tuberculosis,
and malaria. Their support and input has been invaluable in helping us
to draft legislation that builds upon and enhances our efforts to
combat infectious diseases worldwide.
Another essential component to broadening the U.S. mandate for
involvement in international health initiatives is the creation of the
Paul Coverdell Health Care Corps, a Corps based on the Peace Corps and
run through the Department of Health and Human Services. This Corps
would provide assistance for the placement of health care professionals
who wish to provide their services in developing countries dealing with
the crises of HIV/AIDS, tuberculosis, and malaria. This legislation
provides flexibility in the design of the program but ensures a wide
variety of volunteer opportunities--both short-term and long-term
projects, administered by the Ministries of Health, local communities,
non-governmental organizations, both faith-based and secular, or the
United States government.
Where do we go from here?
First, public-private partnerships are extremely important and should
be encouraged to attack the pressing problems. This can take place
through widespread support for the Global AIDS and Health Fund and by
hastily enacting a vaccine development tax credit.
Furthermore, we should promote access to high-quality health care by
engaging the American public health infrastructure in a collaborative
effort to address an epidemic that has no regard for international
boundaries.
We must enlist each stakeholder in the fight against HIV/AIDS.
Political, ethnic, and religious leaders can coalesce support for
prevention, care, and treatment programs as well as reduce stigmas
attached to the disease--a crucial element to any prevention program.
Finally, we must not lose sight of the importance of prevention when
attempting to provide treatment. Likewise, we must not let the
importance of treatment for those presently be forgotten in the rush to
enhance awareness and prevention efforts.
As Americans, our challenge has always been to work with other
nations to create a better, safer world through courage, persistence,
and patience.
That is still our challenge today. And I have no doubt that, as a
nation, and as a people, we will rise to it.
The bipartisan legislation we are introducing today is an important
step toward achieving these goals. I thank my cosponsors for their
support. And, I look forward to working with all my colleagues to
improve our international efforts to fight deadly infectious diseases
by passing the GLIDER Act.
______
By Mr. WYDEN (for himself and Mr. Burns):
S. 1231. A bill to amend the Federal Power Act to establish a system
for market participants, regulators, and the public to have access to
certain information about the operation of electricity power markets
and transmission systems; to the Committee on Energy and Natural
Resources.
Mr. WYDEN. Mr. President, it is time to lift the veil of secrecy
around energy markets in this country.
Now that electric power is being traded as a commodity, with
electricity bought and sold in markets all across the country, basic
information about things like transmission capability and outages must
be made available to the public. This information is crucial both for
the markets to function efficiently and for the public to have
confidence in these markets. But, unlike other commodities, it is often
difficult to get basic information about how electric power systems and
markets work. Information about the supply, demand and transmission of
electricity around the country is simply unavailable in many areas of
the country to State regulators and the general public.
The electric power industry has not made this information available,
and without Congressional action, Americans will continue to be kept in
the dark about information they need to make informed choices and which
will enable energy markets to work in a fair way.
Today, along with Senator Burns, I am introducing the Electricity
Information, Disclosure, Efficiency, and Accountability Act to open up
access to operating information so that the markets can operate more
efficiently, which can ultimately provide lower prices for consumers.
Our legislation will create a standard system to provide market
participants,
[[Page S8134]]
regulators and the public with access to key operational information
about wholesale electric transmission systems and power markets. The
bill requires operators of wholesale electric transmission and other
bulk power systems to provide all system users with basic operating
information, including all transmission line and generation facility
data used to determine capacity or restraints on a transmission line
and the supply and demand for electricity. Power system operators
already have access to this information as part of their routine
operation of bulk power systems. So there should be no additional
burden on power generators to disclose information beyond what they are
already providing to their system operators.
In general, the bill would require operating information to be
released on a real-time basis, updated hourly. This would ensure that
market participants can keep current with changing conditions
throughout the day that impact market decisions. This release of real-
time data will also ensure there is a level playing field for all users
of the transmission grid and prevent some users from gaining a
competitive advantage by access to non-public information.
At the same time, the bill also creates a mechanism for keeping
commercially sensitive information confidential or delaying disclosure
of information that could be used to manipulate markets. Our
legislation gives the Federal Energy Regulatory Commission authority to
decide what data is considered commercially sensitive and either should
not be publicly disclosed or should only be disclosed when the data is
no longer commercially sensitive.
In developing this legislation, we have worked with a broad range of
stakeholders including market participants, regulators and consumer
groups. The supporters include Enron, the largest electric power
marketer in the U.S. today, the National Association of Regulatory
Utility Commissioners, NARUC, and the Consumer Federation of America.
The bill we are introducing today will lift the veil of secrecy now
shrouding the operations of electric power systems around the country.
It will improve access to critical information about how electric power
systems and markets work while fully protecting commercially sensitive
data. By improving access to information, market participants will be
better informed when they make the thousands of decisions that must be
made every day about how electricity is generated to customers across
the country. Better access to information will enable regulators to
take appropriate steps to ensure our electric power systems are
reliable and that markets are functioning properly. Ultimately, by
creating more efficient systems and markets, electricity customers
throughout the country will be better served.
I urge my colleagues to support the Electricity Information,
Disclosure, Efficiency, and Accountability Act.
I ask unanimous consent that letters of support written by NARUC and
the Consumer Federation of America be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
National Association of Regulatory Utility Commissioners,
Washington, DC, July 24, 2001.
Senator Ron Wyden,
U.S. Senate,
Washington, DC.
Dear Senator Wyden: Thank you for leadership in sponsoring
legislation to address the data access difficulties
confronting State Public Utility Commissions. Additionally,
the National Association of Regulatory Utility Commissioners
(NARUC) would like to thank you for working with NARUC
members and staff to include in your draft legislation our
recommendations on the types of information necessary to
adequately monitor wholesale electricity markets and to
assure proper access to such information. NARUC supports the
draft legislation you are sponsoring regarding electricity
information disclosure.
Many regional electric markets throughout the country have
experienced price spikes of unusual and unexpected
proportions. These price spikes have led to curtailment or
shutdown of operations of some large industrial customers and
to increased prices for smaller commercial and residential
customers.
The high market price volatility has raised concerns about
the integrity of the markets, leading to calls from numerous
participants, consumers and policy makers for heightened
monitoring of these markets by regulatory bodies. In order to
identify corrective policy options to assure the public of
the competitiveness and efficiency of the developing
wholesale electricity market and its prices, regulatory
bodies need access to data such as production for generating
plants, transmission path schedules and actual flows.
The electric industry restructuring efforts of the federal
government and the various states are based upon an
assumption that wholesale markets are workably competitive.
To that end, policy makers must have the ability to provide
confidence to an already skeptical and uneasy public that the
market is not being ``gamed.'' This confidence can only be
provided if regulators are able to access the data necessary
to ensure that the market is functioning in a truly
competitive fashion. To the extent data is currently shared
among market participants for purposes of reliability, it
should also be available to regulators and the public.
In conclusion, I would like to thank you again for
considering NARUC's concerns and recommendations while you
drafted the ``Electricity Information, Disclosure,
Efficiency, and Accountability Act.'' NARUC would be pleased
to provide any additional assistance necessary to move this
legislation forward.
Sincerely,
Charles D. Gray
Executive Director.
____
Consumer Federation of America,
Washington, DC, July 24, 2001.
Re Support for Wyden/Burns Electricity Information,
Disclosure, Efficiency and Accountability Act.
Hon. Ron Wyden,
U.S. Senate, Washington, DC.
Hon. Conrad Burns,
U.S. Senate, Washington, DC.
Dear Senators Wyden and Burns: The Consumer Federation of
America supports this legislation, which would require that
essential information about the functioning and reliability
of electricity markets be provided to the public, regulators
and market participants on a real-time basis. This would
include operating data used by wholesale system operators to
determine available electric capacity and bottlenecks and to
maintain reliability. Bid data would also have to be made
available, such as the price, amount and delivery location of
electricity that is purchased.
In a series of studies over the last three years, the
Consumer Federation of America has documented in detail how
the flawed deregulation of electricity in a number of states
has led to extensive price spikes and brown outs for
consumers and huge windfalls for many energy producers. Among
the many steps that should be taken to fix this highly
dysfunctional market is the creation of functioning market
institutions and greater transparency. Market institutions
should be developed before, not after, the trading of
electricity begins so that trading is transparent and
disciplined by market forces. Undeveloped information and
trading mechanisms are prone to manipulation. As we've seen
in California over the last year, when abuse occurs under
such circumstances, consumers are vulnerable to price gouging
and the provision of unreliable electricity.
Electricity markets have a multitude of complex
transactions. Unfortunately, good information about these
transactions is not generally available at crucial times,
such as periods of scarcity when wholesale electric prices
are being driven up very quickly. There is simply no
centralized, reliable source of information, particularly for
electric system operators. Moreover, the brokers who are the
sources of information--on bid prices, for instance--may well
have an interest in skewing it. Overall, a number of
information and management weaknesses exist, including
inadequate market forecasting tools, a lack of monitoring
instruments and little real-time information to respond to
market problems.
This legislation addresses the lack of timely information
that exists about the rates, terms and conditions under which
wholesale electricity is being offered. It is an essential
step in making this nation's defective electricity markets
more competitive and more pro-consumer.
Sincerely,
Travis B. Plunkett,
Legislative Director.
Mr. BURNS. Mr. President, I am pleased to join Senator Wyden today
with the introduction of the Electricity Information, Disclosure,
Efficiency, and Accountability Act.
Legislation dealing with market data for the wholesale electric power
market is long overdue. The evolving wholesale electric power market is
being hindered by the lack of data that power suppliers need in order
to provide services to the market. Access to real time operational
information leads to improved efficiencies of systems dispatch in the
short term, which
[[Page S8135]]
leads to lower prices for consumers. The absence of reliable, real
time, market data hinders the ability of energy suppliers to manage
price and volume risk and also prevents efficient utilization of
transmission and generation capacity. consequently, the increased costs
associated with risks inherent in operating without reliable data are
ultimately borne by consumers.
As our Nation moves towards consumer choice it is important that this
Congress takes action to direct the Federal Energy Regulatory
Commission (FERC) to craft rules designed to promote transparency in
energy markets. This bill that Senator Wyden and I have introduced will
do just that.
By incorporating a standard system that would provide market
participants, regulators and the public access to certain operational
information concerning power markets and the transmission systems that
support them, this plan would keep participants abreast of the changing
power operating conditions throughout the day that impact market
decisions required to manage risk. The recent fluctuations in the
Western energy markets have shown Montana and every State in the West
that we cannot shelter ourselves from the power operating conditions in
other States. With more access to that information, our local and State
suppliers can have the information to better protect their consumers.
This bill is backed by consumer groups, power marketers, and the
national utility commissioners. It puts forward a framework that many
of our colleagues can support. As the Senate continues to move closer
to having movements on energy legislation, I would urge my colleagues
to also support the Electricity Information, Disclosure, Efficiency,
and Accountability Act.
______
By Mr. McCONNELL:
S. 1232. A bill to provide for the effective punishment of online
child molesters, and for other purposes; to the Committee on the
Judiciary.
Mr. McCONNELL. 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. 1232
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 ``Cybermolesters Enforcement
Act of 2001''.
SEC. 2. MANDATORY MINIMUM SENTENCES.
Section 2423 of title 18, United States Code, is amended--
(1) in subsection (b), by inserting ``not less than 5 and''
before ``not more than 15''; and
(2) in subsection (c), by inserting ``not less than 5 and''
before ``not more than 15''.
SEC. 3. AUTHORIZATION OF INTERCEPTION OF COMMUNICATIONS IN
THE INVESTIGATION OF SEXUAL CRIMES AGAINST
CHILDREN.
(a) Child Pornography.--Section 2516(1)(c) of title 18,
United States Code, is amended by inserting ``section 2252A
(relating to material constituting or containing child
pornography),'' after ``2252 (sexual exploitation of
children),''.
(b) Transportation for Illegal Sexual Activity.--Section
2516(1) of title 18, United States Code, as amended by
section 3 of this Act, is amended--
(1) by striking ``or'' at the end of paragraph (o);
(2) by inserting after paragraph (o) the following:
``(p) a violation of section 2422 (relating to coercion and
enticement) or section 2423 (relating to transportation of
minors) of this title, if, in connection with that violation,
the sexual activity for which a person may be charged with a
criminal offense would constitute a felony offense under
chapter 109A or 110, if that activity took place within the
special maritime and territorial jurisdiction of the United
States; or''; and
(3) by redesignating paragraph (p) as paragraph (q).
(c) Technical Amendment Eliminating Duplicative
Provision.--Section 2516(1) of title 18, United States Code,
is amended--
(1) by striking the first paragraph (p); and
(2) by inserting ``or'' at the end of paragraph (o).
SEC. 4. CHILD PORNOGRAPHY AS CONTRABAND.
Section 80302(a) of title 49, United States Code, is
amended--
(1) in paragraph (5), by striking ``or'' after the
semicolon;
(2) in paragraph (6)(D), by striking the period and
inserting ``; or''; and
(3) by inserting at the end the following:
``(7) material involved in a violation of section 2252A of
title 18, United States Code (relating to material
constituting or containing child pornography).''.
______
By Mr. KOHL (for himself, Mr. Hatch, Mr. Leahy, Mr. DeWine, and
Mr. Durbin):
S. 1233. A bill to provide penalties for certain unauthorized writing
with respect to consumer products; to the Committee on the Judiciary.
Mr. KOHL. Madam President, I rise today with Senators Hatch, Leahy,
DeWine, and Durbin to introduce the Product Packaging Protection Act of
2001. This measure will help prevent and punish a disturbing trend of
product tampering, the placement of hate-filled literature into the
boxes of cereal or food that millions of Americans bring home from the
grocery store every day.
Opening a box of macaroni and cheese should not be a harrowing
experience. But too many Americans have recently opened product boxes
and found offensive, racist, anti-Semitic, pornographic and hateful
leaflets. In the last few years, food manufacturers have received
numerous complaints from consumers who report finding such literature
inserted in their groceries. Hundreds more incidents have likely gone
unreported. Pizza and cereal boxes appear to be the most frequent
targets of this hate speech, but any product large enough for a vandal
to insert an offensive leaflet is a potential target.
As disturbing as this conduct is, it is equally troubling that no
Federal law exists. And only a couple of State laws are in place. The
measure I introduce today will remedy this situation. It is supported
by the manufacturers whose products are tampered with. It is necessary
for us to help the American consumer.
It will empower the government to investigate and punish these
reprehensible acts. Let me give you one example of how these acts
impact unsuspecting Americans. This conduct can harm the youngest and
most impressionable among us.
Recently, one morning, eight year old Mario Alexander of Chestnut
Ridge, NJ decided to make himself breakfast one morning. In a kitchen
cabinet, he found an unopened box of his favorite cereal, Oreo O's. So,
he grabbed the cereal, a bowl, a spoon, and milk from the refrigerator.
He then sat down at the kitchen table and opened the cereal box. In
addition to the sealed bag of cereal inside, he also found a piece of
paper. When he opened it, he discovered a graphic description of
abortion. The leaflet also informed Mario that groups like the National
Organization of Women and the American Civil Liberties Union are
``Natural Born Killers.'' Imagine his surprise and confusion when he
found that propaganda, not to mention the shock of his parents. No
child should be unknowingly exposed to that kind of material. Yet, it
happens regularly in kitchens across the country.
These are not isolated occurrences. In fact, Kraft Foods has
documented over 80 incidents in the past four years alone, almost one
every two weeks. Of course, there is no way to calculate the number of
incidents that go unreported. Many manufacturers and distributors share
Kraft's experience with this type of product tampering. Together, they
recognize the need for this legislation and have signed a letter
supporting the introduction and passage of this bill. The supporters of
this bill include: the American Bakers Association, the American Frozen
Food Institute, Food Distributors International, General Mills, the
Grocery Manufacturers of America, the Independent Bakers Association,
Kellogg's, Kraft Foods, the National Food Processors Association, and
the National Frozen Pizza Institute.
No child, indeed no person, should have to face this type of assault
in the privacy of their homes. But children like Mario Alexander are
not the only victims of this kind of behavior. The companies that make
these products have their names and reputations slandered by this
activity.
Manufacturers have responded as best they can to these incidents.
They have undertaken internal reviews to ensure that these leaflets are
not getting into the products either at the manufacturing plant or
during distribution. It is not until the products reach the shelves of
the grocery store that these handbills are inserted, too late for the
manufacturer or the distributor to do anything about it.
Unfortunately, when consumers or companies turn to the authorities
for
[[Page S8136]]
help, they cannot be assisted. According to the Federal Bureau of
Investigations and the Food and Drug Administration's Office of
Criminal Investigation, these actions are not covered by federal
product tampering statutes. Those laws only cover the actual product
themselves, but not the packaging. In response to incidents in their
respective states, both New Jersey and California passed laws to
criminalize this behavior. These States should be commended, but more
should be done. Federal law needs to be amended accordingly.
The Product Packaging Protection Act of 2001 would prohibit the
placement of any writing or other material inside a consumer product
without the permission of the manufacturer, authorized distributor, or
retailer. An exception would be made where the manufacturer places
inserts in the product solely for promotional purposes. The penalty for
violation of this measure would be a fine of up to $250,000 per offense
and/or imprisonment of up to three years. Closing this gap in Federal
law would appropriately punish people whose actions violate the
integrity of the food product, compromise consumer's faith in the food
they purchase in the grocery store, and damage the good name and
reputation of the food manufacturer.
I look forward to its consideration and passage.
Mr. President, I ask unanimous consent that a copy of the legislation
be printed in the Record following the completion of my remarks. I also
ask unanimous consent that copies of the remarks of cosponsoring
Senators be printed immediately following my statement.
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. 1233
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 ``Product Packaging Protection
Act of 2001''.
SEC. 2. TAMPERING WITH CONSUMER PRODUCTS.
Section 1365 of title 18, United States Code, is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following new
subsection (f):
``(f)(1) Whoever, without the consent of the manufacturer,
retailer, or authorized distributor, intentionally tampers
with a consumer product that is sold in interstate or foreign
commerce by knowingly placing or inserting any writing in the
consumer product, or the container for the consumer product,
before the sale of the consumer product to any consumer shall
be fined under this title, imprisoned not more than three
years, or both.
``(2) As used in paragraph (1) of this subsection, the term
`writing' means any form of representation or communication,
including handbills, notices, or advertising, that contain
letters, words, or pictorial representations.''.
Mr. HATCH. Mr. President, I am proud to sponsor, along with my good
friend and esteemed colleague, Senator Kohl, the Product Packaging
Protection Act of 2001. Other cosponsors include Senator DeWine and the
distinguished Chairman of the Judiciary Committee, Senator Leahy.
This bipartisan legislation addresses a troubling development that
has been increasingly reported over the last several years--the
discovery by consumers of unauthorized pamphlets placed inside the
packaging of everyday consumer products, such as breakfast cereal and
frozen foods. In many cases, unsuspecting consumers, including young
children, have found offensive messages inserted into the products they
have purchased, including pamphlets explicitly advocating violence
against particular racial, ethnic, and religious groups.
While Federal law currently prohibits tampering with consumer
products that taints the product, or renders the labeling materially
false, the law does not currently prohibit someone placing writings in
or on the product after the product has left the manufacturer's
control. The legislation being introduced today will close this
loophole--providing the FBI and other Federal law enforcement agencies
with jurisdiction to investigate these incidents and bring the
perpetrators to justice.
With all the recent focus on protecting our children from corrupting
influences on the Internet, we should not ignore old-fashioned ``low
tech'' avenues by which harmful and often hateful messages may be
disseminated. It is intolerable for the distributors of our foodstuffs
and other consumer products to become the unwitting carriers of
offensive harmful messages.
I look forward to working with Senator Kohl to ensure passage of this
important legislation.
Mr. LEAHY. Madam President, I am pleased to join Senator Kohl, and
others, on introducing the Product Packaging Protection Act of 2001.
Over the last few years, consumer complaints had been made about
offensive material being inserted in various consumer products. These
offensive materials range from neo-Nazi and anti-Semitic hate messages
to pornographic images and disturbing anti-abortion images.
Unfortunately, these materials have been found in consumer products
often used by children, such as cereal boxes. Moreover, such activities
pose risks to the safety of consumer products, which consumers
reasonably expect to obtain from the store in pristine condition and
without those products having been opened by unauthorized individuals.
To address this problem, this legislation would add a new prohibition
to the Federal Anti-Tampering Act, 18 U.S.C. Sec. 1365, to prohibit a
person from intentionally tampering with a consumer product, without
the consent of the manufacturer, retailer, or authorized distributor by
inserting a writing in the consumer product or its container prior to
its sale to a consumer. A person convicted of violating this new
provision would be subject to a fine or up to two years' imprisonment.
The term ``tamper'' is defined to mean meddling for the purpose of
altering, damaging or misusing a product. See Webster's Dictionary. The
bill describes in precise terms the tampering activity that would fall
within the new criminal prohibition, and is intended to extend further
protection to consumer products.
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