[Congressional Record Volume 147, Number 105 (Wednesday, July 25, 2001)]
[Senate]
[Pages S8205-S8236]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. HATCH (for himself, Mr. Schumer, and Mr. DeWine):
S. 1234. A bill to amend title 18, United States Code, to provide
that certain sexual crimes against children are predicate crimes for
the interception of communications, and for other purposes; to the
Committee on the Judiciary.
Mr. HATCH. Mr. President, the Internet has dramatically changed the
lives of the American people. The way in which we work, live, play, and
learn has been forever changed. The benefits this new technology has
brought to us are truly innumerable. Unfortunately, however, the
technology has also created some fearful problems. In particular, the
Internet is fast becoming an increasingly popular means by which
criminals pursue their nefarious activities.
Perhaps no criminal activity is as nefarious as sex crimes directed
at children. And alarmingly, the Internet has proved to be a boon for
these sexual predators. Before the Internet, these deranged individuals
operated in the open, lurking near parks or schools in an effort to
lure children. Now they are able, with almost absolute anonymity and
from the security of their homes, to reach our children over the
Internet.
The result is frightening. According to State and local law
enforcement officials, the Internet has brought an explosion in sexual
predator and child pornography activity. Since 1995, the FBI alone has
investigated more than 4,900 cases involving persons traveling
interstate for the purpose of engaging in illicit sexual relationships
with minors and persons involved with the manufacture, dissemination
and possession of child pornography.
According to the Bureau, computers have rapidly become one of the
most prevalent communications devices with which pedophiles and other
sexual predators share sexually explicit photographic images of minors
and identify and recruit children for sexually illicit relationships.
This fact is not lost on the public. When asked about cyber-crime, a
majority of Americans pointed to child pornography as their biggest
concern. The Pew Internet & American Life Report Survey found that 92
percent of Americans are concerned about child pornography. Americans
are rightly concerned that the Internet does not become a haven for
those who would commit these horrific crimes.
The Anti-Sexual Predator Act of 2001, which I am introducing today,
provides much-needed tools to investigators tracking sexual predators
and child pornographers. The legislation will be particularly useful to
investigators tracking sexual predators.
Although in many cases much of the initial relationship between these
sexual predators and their child victims takes place online, the
predators will ultimately seek to have personal contact with the child.
Thus, the communications will move first to the telephone, and then to
face to face meetings. The telephone calls between the perpetrators and
the victims therefore represent a dangerous step in the luring of the
child. And the more access the sexual predator is allowed to the child
victim, the greater the chance that the predator will succeed in
convincing the child to continue the ``relationship'' and agree to
personal meetings.
As the laws stand today, investigators do not have access to the
Federal wiretap statutes to investigate these predators. Absent this
authority, law enforcement officers, upon discovery of the on-line
relationship, are left to attempt to gain information about the
relationship from an often uncooperative or resentful child who
believes that he or she is ``in love'' with the perpetrator. Providing
wiretap authority not only will aid law enforcement's efforts to obtain
evidence of these crimes, it will also help them stop these crimes
before the predator makes physical contact with the child.
The Anti-Sexual Predator Act of 2001 will add three predicate
offenses to the Federal wiretap statute. This addition will enable law
enforcement to intercept wire and oral communications relating to child
pornography materials, the coercion and enticement of individuals to
travel interstate to engage in sexual activity, the transportation of
minors for the purpose of engaging in sexual activity.
To be sure, law enforcement will still need to obtain authority from
a court in order to obtain a wiretap, and the court will authorize the
wiretap only if the government meets the strict statutory guidelines
laid out in Title III. Thus, this legislation does nothing to undermine
the legitimate expectations of privacy of law-abiding American
citizens.
This legislation fills a gap in our arsenal against child
pornographers and sexual predators. I know we all share this goal, and
I urge my colleagues to join me in expeditiously acting on this
important legislation. 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. 1234
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 ``Anti-Sexual Predator Act of
2001''.
SEC. 2. 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, is amended--
(1) by redesignating paragraph (p), as so redesignated by
section 434(2) of the Antiterrorism and Effective Death
Penalty Act of 1996 (Public Law 104-132; 110 Stat. 1274), as
paragraph (q);
(2) by striking paragraph (p), as so redesignated by
section 201(3) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (division C of Public
Law 104-208; 110 Stat. 3009-565); and
(3) 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 of this title, if that activity took
place within the special maritime and territorial
jurisdiction of the United States; or''.
______
By Mr. HATCH:
S. 1235. A bill to make clerical and other technical amendments to
title 18, United States Code, and other laws relating to crime and
criminal procedure; to the Committee on the Judiciary.
Mr. HATCH. 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. 1235
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 ``Criminal Law Technical
Amendments Act of 2001''.
SEC. 2. TECHNICAL AMENDMENTS RELATING TO CRIMINAL LAW AND
PROCEDURE.
(a) Missing and Incorrect Words.--
(1) Correction of garbled sentence.--Section 510(c) of
title 18, United States Code, is amended by striking ``fine
of under this title'' and inserting ``fine under this
title''.
(2) Insertion of missing words.--Section 981(d) of title
18, United States Code, is amended by striking ``proceeds
from the sale of this section'' and inserting ``proceeds from
the sale of such property under this section''.
(3) Correction of incorrect word.--Sections 1425 through
1427, 1541 through 1544 and 1546(a) of title 18, United
States Code, are each amended by striking ``to facility'' and
inserting ``to facilitate''.
(4) Correcting erroneous amendatory language on executed
amendment.--Effective on the date of the enactment of Public
Law 103-322, section 60003(a)(13) of such public law is
amended by striking ``$1,000,000 or imprisonment'' and
inserting ``$1,000,000 and imprisonment''.
(5) Insertion of missing word.--Section 3286 of title 18,
United States Code, is amended by inserting ``section''
before ``2332b''.
(6) Correction of reference to short title of law.--That
section 2332d(a) of title
[[Page S8206]]
18, United States Code, which relates to financial
transactions is amended by inserting ``of 1979'' after
``Export Administration Act''.
(7) Elimination of typo.--Section 1992(b) of title 18,
United States Code, is amended by striking ``term or years''
and inserting ``term of years''.
(8) Spelling correction.--Section 2339A(a) of title 18,
United States Code, is amended by striking ``or an escape''
and inserting ``of an escape''.
(9) Section 3553.--Section 3553(e) of title 18, United
States Code, is amended by inserting ``a'' before
``minimum''.
(10) Misspelling in section 205.--Section 205(d)(1)(B) of
title 18, United States Code, is amended by striking
``groups's'' and inserting ``group's''.
(11) Conforming change and inserting missing word in
section 709.--The paragraph in section 709 of title 18,
United States Code, that begins with ``A person who'' is
amended--
(A) by striking ``A person who'' and inserting ``Whoever'';
and
(B) by inserting ``or'' after the semicolon at the end.
(12) Error in language being stricken.--Effective on the
date of its enactment, section 726(2) of the Antiterrorism
and Effective Death Penalty Act of 1996 (Public Law 104-132)
is amended--
(A) in subparagraphs (C) and (E), by striking ``section''
the first place it appears; and
(B) in subparagraph (G), by striking ``relating to'' the
first place it appears.
(b) Margins, Punctuation, and Similar Errors.--
(1) Margin error.--Section 1030(c)(2) of title 18, United
States Code, is amended so that the margins of subparagraph
(B) and each of its clauses, are moved 2 ems to the left.
(2) Correcting capitalization in language to be stricken.--
Effective on the date of its enactment, section 607(g)(2) of
the Economic Espionage Act of 1996 is amended by striking
``territory'' and inserting ``Territory''.
(3) Correcting paragraphing.--The material added to section
521(a) of title 18, United States Code, by section 607(q) of
the Economic Espionage Act of 1996 is amended to appear as a
paragraph indented 2 ems from the left margin.
(4) Subsection placement correction.--Section 1513 of title
18, United States Code, is amended by transferring subsection
(d) so that it appears following subsection (c).
(5) Insertion of parenthetical descriptions.--Section
2332b(g)(5)(B)(i) of title 18, United States Code, is
amended--
(A) by inserting ``(relating to certain killings in Federal
facilities)'' after ``930(c)'';
(B) by inserting ``(relating to wrecking trains)'' after
``1992''; and
(C) by striking ``2332c,''.
(6) Correction to allow for insertion of new subparagraph
and correction of erroneous indentation.--Section 1956(c)(7)
of title 18, United States Code, is amended--
(A) in subparagraph (B)(ii), by moving the margin 2 ems to
the right;
(B) by striking ``or'' at the end of subparagraph (D);
(C) by striking the period at the end of subparagraph (E)
and inserting ``; or''; and
(D) in subparagraph (F), by striking ``Any'' and inserting
``any''.
(7) Correction of confusing subdivision designation.--
Section 1716 of title 18, United States Code, is amended--
(A) in the first undesignated paragraph, by inserting
``(j)(1)'' before ``Whoever'';
(B) in the second undesignated paragraph--
(i) by striking ``not more than $10,000'' and inserting
``under this title''; and
(ii) by inserting ``(2)'' at the beginning of that
paragraph;
(C) by inserting ``(3)'' at the beginning of the third
undesignated paragraph; and
(D) by redesignating subsection (j) as subsection (k).
(8) Punctuation correction in section 1091.--Section
1091(b)(1) of title 18, United States Code, is amended by
striking ``subsection (a)(1),'' and inserting ``subsection
(a)(1)''.
(9) Punctuation correction in section 2311.--Section 2311
of title 18, United States Code, is amended by striking the
period after ``carcasses thereof'' the second place that term
appears and inserting a semicolon.
(10) Syntax correction.--Section 115(b)(2) of title 18,
United States Code, is amended by striking ``, attempted
kidnapping, or conspiracy to kidnap of a person'' and
inserting ``or attempted kidnapping of, or a conspiracy to
kidnap, a person''.
(11) Correcting capitalization in section 982.--Section
982(a)(8) of title 18, United States Code, is amended by
striking ``Court'' and inserting ``court''.
(12) Punctuation corrections in section 1029.--Section 1029
of title 18, United States Code, is amended--
(A) in subsection (c)(1)(A)(ii), by striking ``(9),'' and
inserting ``(9)''; and
(B) in subsection (e), by adding a semicolon at the end of
paragraph (8).
(13) Corrections of connectors and punctuation in section
1030.--Section 1030 of title 18, United States Code, is
amended--
(A) by striking ``and'' at the end of subsection (c)(2)(A);
(B) by inserting ``and'' at the end of subsection
(c)(2)(B)(iii);
(C) by striking ``; and'' at the end of subsection
(c)(3)(B) and inserting a period;
(D) by striking the period at the end of subsection
(e)(4)(I) and inserting a semicolon; and
(E) by striking ``and'' at the end of subsection (e)(7).
(14) Correction of punctuation in section 1032.--Section
1032(1) of title 18, United States Code, is amended by
striking ``13,'' and inserting ``13''.
(15) Correction of punctuation in section 1345.--Section
1345(a)(1) of title 18, United States Code, is amended--
(A) in subparagraph (B), by striking ``, or'' and inserting
``; or''; and
(B) in subparagraph (C), by striking the period and
inserting a semicolon.
(16) Correction of punctuation in section 3612.--Section
3612(f)(2)(B) of title 18, United States Code, is amended by
striking ``preceding.'' and inserting ``preceding''.
(17) Correction of indentation in controlled substances
act.--Section 402(c)(2) of the Controlled Substances Act (21
U.S.C. 842(c)(2)) is amended by moving the margin of
subparagraph (C) 2 ems to the left.
(c) Elimination of Redundancies.--
(1) Elimination of redundant provision.--Section 2516(1) of
title 18, United States Code, is amended--
(A) by striking the first paragraph (p); and
(B) by inserting ``or'' at the end of paragraph (o).
(2) Elimination of duplicate amendments.--Effective on the
date of its enactment, paragraphs (1), (2), and (4) of
section 601(b), paragraph (2) of section 601(d), paragraph
(2) of section 601(f), paragraphs (1) and (2)(A) of section
601(j), paragraphs (1) and (2) of section 601(k), subsection
(d) of section 602, paragraph (4) of section 604(b),
subsection (r) of section 605, and paragraph (2) of section
607(j) of the Economic Espionage Act of 1996 are repealed.
(3) Elimination of extra comma.--Section 1956(c)(7)(D) of
title 18, United States Code, is amended--
(A) by striking ``Code,,'' and inserting ``Code,''; and
(B) by striking ``services),,'' and inserting
``services),''.
(4) Repeal of section granting duplicative authority.--
(A) Section 3503 of title 18, United States Code, is
repealed.
(B) The table of sections at the beginning of chapter 223
of title 18, United States Code, is amended by striking the
item relating to section 3503.
(5) Elimination of outmoded reference to parole.--Section
929(b) of title 18, United States Code, is amended by
striking the last sentence.
(d) Correction of Outmoded Fine Amounts.--
(1) In title 18, united states code.--
(A) In section 492.--Section 492 of title 18, United States
Code, is amended by striking ``not more than $100'' and
inserting ``under this title''.
(B) In section 665.--Section 665(c) of title 18, United
States Code, is amended by striking ``a fine of not more than
$5,000'' and inserting ``a fine under this title''.
(C) In sections 1924, 2075, 2113(b), and 2236.--
(i) Section 1924(a) of title 18, United States Code, is
amended by striking ``not more than $1,000,'' and inserting
``under this title''.
(ii) Sections 2075 and 2113(b) of title 18, United States
Code, are each amended by striking ``not more than $1,000''
and inserting ``under this title''.
(iii) Section 2236 of title 18, United States Code, is
amended by inserting ``under this title'' after ``warrant,
shall be fined'', and by striking ``not more than $1,000''.
(D) In section 372 and 752.--Sections 372 and 752(a) of
title 18, United States Code, are each amended by striking
``not more than $5,000'' and inserting ``under this title''.
(E) In section 924(e)(1).--Section 924(e)(1) of title 18,
United States Code, is amended by striking ``not more than
$25,000'' and inserting ``under this title''.
(2) In the controlled substances act.--
(A) In section 401.--Section 401(d) of the Controlled
Substances Act (21 U.S.C. 841(d)) is amended--
(i) in paragraph (1), by striking ``and shall be fined not
more than $10,000'' and inserting ``or fined under title 18,
United States Code, or both''; and
(ii) in paragraph (2), by striking ``and shall be fined not
more than $20,000'' and inserting ``or fined under title 18,
United States Code, or both''.
(B) In section 402.--Section 402(c)(2) of the Controlled
Substances Act (21 U.S.C. 842(c)) is amended--
(i) in subparagraph (A), by striking ``of not more than
$25,000'' and inserting ``under title 18, United States
Code''; and
(ii) in subparagraph (B), by striking ``of $50,000'' and
inserting ``under title 18, United States Code''.
(C) In section 403.--Section 403(d) of the Controlled
Substances Act (21 U.S.C. 843(d)) is amended--
(i) by striking ``of not more than $30,000'' each place
that term appears and inserting ``under title 18, United
States Code''; and
(ii) by striking ``of not more than $60,000'' each place it
appears and inserting ``under title 18, United States Code''.
(e) Cross Reference Corrections.--
(1) Section 3664.--Section 3664(o)(1)(C) of title 18,
United States Code, is amended by striking ``section
3664(d)(3)'' and inserting ``subsection (d)(5)''.
(2) Chapter 228.--Section 3592(c)(1) of title 18, United
States Code, is amended by striking ``section 36'' and
inserting ``section 37''.
(3) Correcting erroneous cross reference in controlled
substances act.--
[[Page S8207]]
Section 511(a)(10) of the Controlled Substances Act (21
U.S.C. 881(a)(10)) is amended by striking ``1822 of the Mail
Order Drug Paraphernalia Control Act'' and inserting ``422''.
(4) Correction to reflect cross reference change made by
other law.--Effective on the date of its enactment, section
601(c)(3) of the Economic Espionage Act of 1996 is amended by
striking ``247(d)'' and inserting ``247(e)''.
(5) Typographical and typeface error in table of
chapters.--The item relating to chapter 123 in the table of
chapters at the beginning of part I of title 18, United
States Code, is amended--
(A) by striking ``2271'' and inserting ``2721''; and
(B) so that the item appears in bold face type.
(6) Section 4104.--Section 4104(d) of title 18, United
States Code, is amended by striking ``section 3653 of this
title and rule 32(f) of'' and inserting ``section 3565 of
this title and the applicable provisions of''.
(7) Error in amendatory language.--Effective on the date of
its enactment, section 583 of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 1998 (111
Stat. 2436) is amended by striking ``Section 2401'' and
inserting ``Section 2441''.
(8) Error in cross reference to court rules.--The first
sentence of section 3593(c) of title 18, United States Code,
is amended by striking ``rule 32(c)'' and inserting ``rule
32''.
(9) Section 1836.--Section 1836 of title 18, United States
Code, is amended--
(A) in subsection (a), by striking ``this section'' and
inserting ``this chapter''; and
(B) in subsection (b), by striking ``this subsection'' and
inserting ``this section''.
(10) Correction of erroneous cite in chapter 119.--Section
2510(10) of title 18, United States Code, is amended by
striking ``shall have'' and all that follows through ``United
States Code;'' and inserting ``has the meaning given that
term in section 3 of the Communications Act of 1934;''.
(11) Elimination of outmoded cite in section 2339a.--
Section 2339A(a) of title 18, United States Code, is amended
by striking ``2332c,''.
(12) Correction of references in amendatory language.--
Effective the date of its enactment, section 115(a)(8)(B) of
Public Law 105-119 is amended--
(A) in clause (i)--
(i) by striking ``at the end of'' and inserting
``following''; and
(ii) by striking ``paragraph'' the second place it appears
and inserting ``subsection''; and
(B) in clause (ii), by striking ``subparagraph (A)'' and
inserting ``clause (i)''.
(f) Tables of Sections Corrections.--
(1) Conforming table of sections to heading of section.--
The item relating to section 1837 in the table of sections at
the beginning of chapter 90 of title 18, United States Code,
is amended by striking ``Conduct'' and inserting
``Applicability to conduct''.
(2) Conforming heading to table of sections entry.--The
heading of section 1920 of title 18, United States Code, is
amended by striking ``employee's'' and inserting
``employees'''.
SEC. 3. ADDITIONAL TECHNICALS.
Title 18, United States Code, is amended--
(1) in section 922(t)(1)(C), by striking ``1028(d)(1)'' and
inserting ``1028(d)'';
(2) in section 1005--
(A) in the first undesignated paragraph, by striking
``Act,,'' and inserting ``Act,''; and
(B) by inserting ``or'' at the end of the third
undesignated paragraph;
(3) in section 1071, by striking ``fine of under this
title'' and inserting ``fine under this title'';
(4) in section 1368(a), by inserting ``to'' after ``serious
bodily injury'';
(5) in section 1956(c)(7)(B)(ii), by inserting ``or'' at
the end thereof;
(6) in section 1956(c)(7)(B)(iii), by inserting a closing
parenthesis after ``1978'';
(7) in subsections (b)(1) and (c) of section 2252A, by
striking ``paragraphs'' and inserting ``paragraph''; and
(8) in section 2254(a)(3), by striking the comma before the
period at the end.
SEC. 4. REPEAL OF OUTMODED PROVISIONS.
(a) Section 14 of title 18, United States Code, and the
item relating thereto in the table of sections at the
beginning of chapter 1 of title 18, United States Code, are
repealed.
(b) Section 1261 of such title is amended--
(1) by striking ``(a) The Secretary'' and inserting ``The
Secretary''; and
(2) by striking subsection (b).
(c) Section 1821 of such title is amended by striking ``,
the Canal Zone''.
(d) Section 3183 of such title is amended by striking ``or
the Panama Canal Zone,''.
(e) Section 3241 of such title is amended by striking
``United States District Court for the Canal Zone and the''.
______
By Mrs. FEINSTEIN (for herself and Mr. Hatch):
S. 1236. A bill to reduce criminal gang activities; to the Committee
on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I rise to introduce the Criminal Gang
Abatement Act of 2001, a bill to give law enforcement additional tools
to fight the scourge of gang violence.
This legislation builds on and improves the Violent Crime Control and
Law Enforcement Act of 1994, the first Federal statute to address
directly the problem of criminal gangs.
I am delighted that Senator Hatch joins me in introducing this bill
and I thank him for his hard work in helping develop the legislation.
I know that this bill will be familiar to my colleagues. It is
similar to legislation that was included in the Juvenile Justice bill
in the last Congress.
The Senate passed the Juvenile Justice bill overwhelmingly.
Unfortunately, it did not become law. That is why Senator Hatch and I
are introducing this gang legislation separately.
Mr. President, I care deeply about solving the problem of gang
violence and crime.
I worked extensively on this problem when I was Mayor of San
Francisco and have long considered it one of my top priorities.
I am often struck by how vicious gang crimes can be, and how damaging
they are to the victims and to the surrounding community.
Let me give you a couple of recent examples from my own home city of
San Francisco.
Last year, gang members tried to rob a passerby with an assault
weapon from their car. When the victim resisted, the gang shot the
victim 17 times. The victim survived but will never walk again.
Only two months before that assault, two rival gangs had a shootout
in San Francisco's Mission District. An innocent bystander was caught
in the crossfire and shot through both legs.
A brave eyewitness gave law enforcement the name of one shooting
suspect, who was then arrested. The gang then tracked down the witness,
put a 9 millimeter automatic to his head, and threatened to kill him
for cooperating with the police.
I would like to explain how this legislation will help deter and
punish such crimes, and why Congress should act quickly to pass it.
First, the bill makes it a separate Federal crime to recruit persons
to join a criminal street gang with the intent that the recruit
participate in a Federal drug or violent crime.
The penalty is up to 10 years in jail. The offender can also be held
responsible for reimbursing the government's costs in housing,
maintaining, and treating the minor until the age of 18.
The purpose of this provision is to deter criminal gang recruitment.
Such recruitment has continued to grow and grow every year.
Even while crime has been dropping generally, the number of criminal
gangs and gang members has spiraled.
The 1999 Justice Department survey of gangs, the most recent
available, found that the number of gang members has increased 8
percent just from 1998.
In fact, the growth of criminal gangs in the country over the last 20
years, has been extraordinary.
Twenty years ago, the gang problem was centered in Los Angeles and
Chicago. Today, though, there are gangs in all 50 States and the
District of Columbia.
In 1980, there were gangs in 286 jurisdictions. Today, they are in
over 1500 jurisdictions.
In 1980, there were about 2000 gangs. Today, there are over 26,000
gangs.
In 1980, there were about 100,000 gang members. Today, there are
840,500 gang members.
Let me read from a Department of Justice publication entitled ``The
Growth of Youth Gang Problems in the United States: 1970-1998'' that
was just released a few months ago:
Youth gang problems in the United States grew dramatically
between the 1970's and 1990's, with the prevalence of gangs
reaching unprecedented levels. The growth was manifested by
steep increase in the number of cities, counties, and States
reporting gang problems. Increases in the number of gang
localities were paralleled by increases in the proportions
and populations of localities reporting gang problems. There
was a shift in regions contains larger numbers of gang
cities, with the Old South showing the most dramatic
increase. The size of the gang-problem localities also
changed, with gang problems spreading to cities, villages,
and counties smaller in size than at any time in the past.
And as gangs have increased, so have all forms of youth violence.
That is because youngsters who join gangs are much more likely to
commit violent crimes than similarly situated youngsters who are not in
gangs.
[[Page S8208]]
Research shows, for example, that young people who join gangs are
four to six times more likely to engage in criminal behavior when they
are gang members than when they are not.
And it is also because gang members are responsible for a large
proportion of violent crime. They don't just commit one violent crime
but many.
One study found, for example, that gang members, who were 14 percent
of sample, reported committing 89 percent of all serious violent
offenses in the area.
Enacting this bill would give law enforcement an important tool to
deter criminal gang recruitment, thus reducing gang crime.
The bill makes it a separate Federal crime to use a minor to commit a
Federal violent crime, and sets penalties for doing so.
The penalty is twice the maximum term that would otherwise be
authorized for the offense or, for repeat offenders, three times the
maximum penalty.
The bill also increases the minimum penalties for persons using
minors to distribute drugs.
Currently, both first-time and repeat offenders can receive a minimum
of only a year.
Under the bill, a first-time offender will receive at least 3 years
and a repeat-offender will receive at least 5 years.
These provisions are intended to deter gangs from recruiting
youngsters to commit crimes.
Gangs recruit minors because they know that children are often not
fully aware of the consequences of their actions.
Gangs also know that, if the child is caught, he or she will probably
receive lighter punishment than an adult.
Gangs commonly start new recruits as drug lookouts or runners.
Once the youngsters get older, gangs encourage them to engage in more
violent activity.
And young recruits often commit violent crimes to gain the gang's
respect and improve their status within the gang.
I am very troubled by the fact that many youngsters, some barely in
their teens, are lured into gangs by older children and start a life of
crime even before they start high school.
One study of eighth graders in 11 cities, found that 9 percent were
currently gang members and 17 percent said that they had belonged to a
gang at some point in their lives.
According to California law enforcement, the average age of a new
gang recruit in Los Angeles is 11, in San Diego 12-15, and in San
Francisco 15.
In Alabama, it is 12-14. In Virginia, it is 13. In Ohio, it is 16.
In gangs such as the Latin Kings, babies of gang members are
considered gang members from birth.
A South Carolina law enforcement officer told us that he recently
looked into the case of one six-year-old child, who was found wearing
typical gang attire, holding a gun and beeper, and tattooed with the
phrase ``Thug Life.''
I believe that we need to punish gang recruitment of children very
severely. This bill would do that.
The bill increases the penalties for gang members who commit drug or
violent crimes and who use physical force to tamper with witnesses,
victims, or informants.
The bill also generally directs the U.S. Sentencing Commission to
increase penalties for criminal street gang members who commit crimes.
There is a strong link between gangs and drugs. By fighting gangs, we
can help reduce the supply of illegal drugs in this country.
According to the 1999 Justice Department gang survey, almost half of
youth gang members sell drugs to generate profits for the gang.
A survey of California law enforcement by my staff found that gang
members in the States' largest cities are involved in 50 to 90 percent
of all drug offenses.
This is confirmed by gang members themselves.
For example, in one survey of State prison inmates who were gang
members, almost 70 percent said that they had manufactured, imported,
or sold drugs as a group.
Worse, the DOJ 1999 gang survey found that about 40 percent of youth
gangs are ``drug gangs,'' that is, gangs organized specifically to
traffic in drugs.
This is an increase from the 34 percent reported for 1998. The
increase was particularly pronounced in rural areas.
There is also a close correlation between gangs and violent crimes.
For example, gangs commit about half of all violent crimes in
California's major cities. In some areas of Los Angeles, such as South
Central and East Los Angeles, gangs account for 70-80 percent of all
violent crimes.
The increased penalties in this legislation will help reduce drug and
violent crimes, including threats against witnesses and informants.
Currently, under the Federal gang statute, 18 U.S.C. 521, gang
members can only get enhanced penalties for gang crimes that involve
drugs or violence.
The penalty is up to an additional 10 years in jail.
This bill allows enhanced penalties for crimes that are often
committed by gang members but which may not involve drugs or violence.
These crimes include distributing explosives, kidnapping, extortion,
illegal gambling, money laundering, obstruction of justice, and
illegally transporting aliens.
The crimes act as ``predicate'' crimes permitting an additional
charge of participating in a criminal gang.
The Federal gang statute is sort of similar in design to the criminal
RICO statute. That statute permits an additional RICO charge where the
defendant, as part of his or her criminal conspiracy, commits two or
more predicate acts.
The bill ensures that, for gang offenses, offenders can get a
sentence up to 10 years greater than the maximum term they receive for
their most serious offense. They can also forfeit property derived from
the offense.
The offenses added by the bill are those commonly pursued by gangs.
One study of gangs in various counties, for example, found that: 44-
67 percent of gang members reported being involved in auto theft; 34-48
percent in intimidating or assaulting witnesses or victims; and 4-10
percent in kidnapping.
Other studies have found that gang extortion is also common.
Drug gangs commonly use booby traps, that sometimes include
explosives, to protect their cultivation or manufacturing sites from
law enforcement authorities and the public.
Numerous gangs illegally launder their illicit drug profits.
These include Russian and West African criminal gangs as well as
street gangs such as the Bloods, Crips, Gangster Disciples, and Latin
Kings.
Alien smuggling and harboring is especially prevalent in San
Francisco, Los Angeles, Boston, and New York.
Among the worst offenders is the brutal Fuk Ching gang.
After a police crackdown in New York, law enforcement reports that
Fuk Ching began to branch out to Chicago, Maryland, and western
Pennsylvania.
The changes made by this legislation should help reduce drug and
violent crimes.
The Travel Act allows Federal prosecutors to charge certain
interstate crimes such as extortion, bribery, and arson, and for
business enterprises involving gambling, liquor, drugs, or
prostitution.
This statute was passed in 1961 with Mafia-related criminal activity
in mind.
This legislation amends the Travel Act to enable law enforcement to
respond more effectively to the growing problem of organized, highly
sophisticated, and mobile criminal street gangs.
While the Travel Act currently allows law enforcement to target some
activities, such as drug trafficking, the list is not complete.
The list needs to be updated to better reflect interstate crimes
often committed today by gang members.
Thus, the bill amends the Travel Act to include crimes such as drive-
by shootings, serious assaults, and intimidating witnesses.
In California's largest cities, gang members commit 80-100 percent of
all drive-by shootings and around 50 percent of violent crimes.
The numbers are similar for other states as well.
A recent survey in Illinois, for example, found that 50 percent of
the jurisdictions in that state face a serious problem of gang drive-by
shootings.
[[Page S8209]]
The bill also increases the maximum penalty for most violations of
the Travel Act from 5 years to 10 and authorizes the death penalty for
certain homicides that technically do not qualify as murder.
Defendants who commit violent crimes covered by the act or who try to
intimidate or retaliate against witnesses can get 20 years. And, if
they kill someone, they can get life imprisonment or the death penalty.
The bill should ensure that prosecutors can use the Travel Act to act
against crimes caused by the new Mafia: organized street gangs.
The bill would increase the penalties for using or attempting to use
physical force to intimidate witnesses.
The bill would increase the maximum punishment for this crime from 10
years to 20 years.
The bill would also create a crime of threatening to use physical
force against a witness.
Such a threat could be punished by up to 10 years.
Violent crimes by gang members often go unpunished because witnesses
are afraid that, if they testify, gangs will kill or hurt them or their
families.
For example, the Philadelphia deputy district attorney testified
before Congress in 1997 that a very high number of the unsolved
homicides in Philadelphia were unsolved due to gang intimidation.
One study found that intimidation of victims and witnesses was a
major problem for 40-50 percent of prosecutors.
A similar study determined that witness intimidation occurs in at
least 75 percent of violent crimes in gang-dominated neighborhoods.
Recently, DOJ estimated that witness intimidation has been growing
since 1990 and is now a factor in about two-thirds of violent crimes
committed in some gang-dominated neighborhoods.
The bill would help deter and punish victim and witness intimidation
by gangs.
The bill amends several criminal statutes to address violent crimes
frequently or typically committed by gangs.
Crimes include carjacking, assault, manslaughter, racketeering,
murder-for-hire, and fraud against the United States.
These amendments make it easier for prosecutors to prove these crimes
by eliminating or modifying the intent requirement for the crimes or by
increasing the penalties for violations.
The bill permits the Attorney General to designate high intensity
interstate gang activity areas, HIIGAs, and authorizes $100,000,000 for
each of 7 years for these task forces.
These provisions are modeled after similar provisions creating high
intensity drug trafficking areas, HIDTAs.
HIDTAs are joint efforts of local, State, and Federal law enforcement
agencies whose leaders work together to assess regional drug threats,
design strategies to combat those threats, and to develop initiatives
to implement the strategies.
HIDTAs are based on an equal partnership between different law
enforcement agencies.
HIDTAs integrate and synchronize efforts to reduce drug trafficking.
They eliminate unnecessary duplication of effort and maximize
resources.
And they improve intelligence and information sharing both within and
between regions.
HIDTAs are necessary because drug trafficking tends to be
``headquartered'' in certain areas of the country, from which it
spreads to other areas.
Moreover, drug traffickers have been highly organized and developed
sophisticated interstate and international operations.
However, both of these points are true for criminal gangs generally.
While criminal street gangs flourish in certain urban areas such as
Los Angeles and Chicago, they typically also use these cities as bases
to invade more rural locales.
In addition, many gangs have gone from relatively disorganized groups
of street toughs to highly disciplined, hierarchical ``corporations,''
often encompassing numerous jurisdictions.
The Gangster Disciples Nation, for example, developed a corporate
structure.
They had a chairman of the board, two boards of directors, one for
prisons and one for streets, governors, regents, area coordinators,
enforcers, and ``shorties,'' youth who staff drug-selling sites and
help with drug deals.
From 1987 to 1994, this gang was responsible for killing more than
200 people. Moreover, one-half of their arrests were for drug offenses
and only one-third for nonlethal violence.
In 1996, the Gangster Disciples Nation and other Chicago-based gangs
were in 110 jurisdictions in 35 States.
Southern California-based gangs are equally well-dispersed.
In 1994, gangs claiming affiliation with the Bloods or Crips, both of
whom are based in Southern California, were in 180 jurisdictions in 42
states.
As a result of such dispersal, violent criminal gangs can be found in
rural areas.
For example, Washington State law enforcement told us about one gang
member that they traced from Compton, California to San Francisco, then
to Portland, Seattle, and Billings, Montana, and finally Sioux Falls,
South Dakota.
The Justice Department has found that, from the 1970s to the 1990s,
the number of small cities or towns, those with populations smaller
than 10,000, with gangs increased by between 15 to 39 times.
This is a larger relative increase than for cities with populations
larger than 10,000.
In the 1999 National Youth Gang Survey, law enforcement estimated
that almost 1 of every 5 of gang members in their area were migrants
from another area.
In fact, 83 percent of respondents said that the appearance of gang
members in more suburban or rural areas was caused by migration of
gangsters from central cities.
Gang members even travel to countries such as Mexico and El Salvador.
The Logan Heights Gang in San Diego, for example, is currently
employed by the Arellano-Felix Cartel to help guard drug shipments in
Mexico.
The Logan Heights Gang has also been linked to the killing of
Cardinal Juan Pasados-Ocampo in Guadalajara in 1993.
As gangs have spread into rural areas and become more interstate and
international, it has become more important than ever to ensure
coordination between local, state, and federal law enforcement to
combat gangs.
The HIDTA program has worked well and provides a good model for the
high intensity interstate gang activity area program that this bill
creates.
I expect that the high intensity interstate gang activity area
program will help reduce the gang problem in the same way that the
HIDTA program has helped reduce the drug problem.
The bill also allows serious juvenile drug offenses to be Armed
Career Criminal Act predicates.
This provision ensures that career criminals do not escape higher
sentences just because their most serious drug offenses occurred when
they were a juvenile.
Under this legislation, all armed career criminals will get up to the
maximum statutory maximum of 15 years in jail, time which may be not
reduced through suspension or probation.
The bill makes the gang statute consistent with the Supreme Court's
recent opinion in Apprendi v. United States.
In that decision, the Supreme Court held that any fact that increases
the penalty for a crime beyond the statutory maximum must be treated as
an element of the offense.
This decision has caused some problems for law enforcement in
prosecuting gang crimes.
This is because the Federal gang statute has been treated as a
sentence enhancement statute, not a stand-alone criminal offense
statute.
Before Apprendi, prosecutors would charge gang members with drug and
other crimes.
If they were convicted, they would then ask the court to enhance the
gang member's sentence because of his or her membership in a criminal
gang.
On many occasions, this sentence enhancement would go beyond the
statutory maximum for the underlying offenses.
In light of Apprendi, this bill rewrites federal law to ensure that
prosecutors can charge gang members for a separate offense under the
federal gang statute.
[[Page S8210]]
In doing so, the bill also makes it easier for prosecutors to charge
gang members by reducing the membership requirement for a criminal gang
from a minimum of five members to a minimum of three members.
The bill authorizes $50,000,000 for 5 years to make grants to
prosecutors' officers to combat gang crime and youth violence.
This money will help implement this legislation by ensuring that law
enforcement has the money to prosecute gang members.
This is important legislation.
I urge my colleagues to act quickly to pass it.
I would also ask unanimous consent that the text of the bill and an
accompanying section-by-section description be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1236
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 ``Criminal Gang Abatement Act
of 2001''.
SEC. 2. SOLICITATION OR RECRUITMENT OF PERSONS IN CRIMINAL
STREET GANG ACTIVITY.
(a) Prohibited Acts.--Chapter 26 of title 18, United States
Code, is amended by adding at the end the following:
``Sec. 522. Recruitment of persons to participate in criminal
street gang activity
``(a) Prohibited Acts.--It shall be unlawful for any person
to use any facility in, or travel in, interstate or foreign
commerce, or cause another to do so, to recruit, solicit,
induce, command, or cause another person to be or remain as a
member of a criminal street gang, or conspire to do so, with
the intent that the person being recruited, solicited,
induced, commanded, or caused to be or remain a member of
such gang participate in an offense described in section
521(c) of this title.
``(b) Penalties.--Any person who violates subsection (a)
shall--
``(1) be imprisoned not more than 10 years, fined under
this title, or both; and
``(2) if the person recruited, solicited, induced,
commanded, or caused is a minor, at the discretion of the
sentencing judge, be liable for any costs incurred by the
Federal Government, or by any State or local government, for
housing, maintaining, and treating the person until the
person attains the age of 18 years.
``(c) Definitions.--In this section:
``(1) Criminal street gang.--The term `criminal street
gang' has the meaning set forth in section 521 of this title.
``(2) Minor.--The term `minor' means a person who is less
than 18 years of age.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 26 of title 18, United States Code, is
amended by adding at the end the following:
``522. Recruitment of persons to participate in criminal street gang
activity.''.
SEC. 3. PENALTIES FOR USE OF MINORS IN CRIMES OF VIOLENCE.
(a) In General.--Chapter 1 of title 18, United States Code,
is amended by adding at the end the following:
``Sec. 25. Use of minors in crimes of violence
``(a) Penalties.--Whoever, being a person not less than 18
years of age, intentionally uses a minor to commit a crime of
violence for which such person may be prosecuted in a court
of the United States, or to assist in avoiding detection or
apprehension for such an offense, shall--
``(1) be subject to twice the maximum term of imprisonment
and twice the maximum fine that would otherwise be authorized
for the offense; and
``(2) for the second and any subsequent conviction under
this subsection, be subject to three times the maximum term
of imprisonment and three times the maximum fine that would
otherwise be authorized for the offense.
``(b) Definitions.--In this section:
``(1) Crime of violence.--The term `crime of violence' has
the meaning set forth in section 16 of this title.
``(2) Minor.--The term `minor' means a person who is less
than 18 years of age.
``(3) Uses.--The term `uses' means employs, hires,
persuades, induces, entices, or coerces.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 1 of title 18, United States Code, is
amended by adding at the end the following:
``25. Use of minors in crimes of violence.''.
SEC. 4. INCREASED PENALTIES FOR USING MINORS TO DISTRIBUTE
DRUGS.
Section 420 of the Controlled Substances Act (21 U.S.C.
861) is amended--
(1) in subsection (b), by striking ``one year'' and
inserting ``3 years''; and
(2) in subsection (c), by striking ``one year'' and
inserting ``5 years''.
SEC. 5. CRIMINAL STREET GANGS.
(a) In General.--Section 521 of title 18, United States
Code, is amended to read as follows:
``Sec. 521. Criminal street gangs
``(a) Definitions.--In this section:
``(1) Conviction.--The term `conviction' includes a
finding, under Federal or State law, that a person has
committed an act of juvenile delinquency involving an offense
described in subsection (c).
``(2) Criminal street gang.--The term `criminal street
gang' means an ongoing group, club, organization, or
association of 3 or more persons, whether formal or
informal--
``(A) that has as 1 of its primary purposes or activities
the commission of 1 or more of the offenses described in
subsection (c);
``(B) the members of which engage, or have engaged within
the past 5 years, in a continuing series of offenses
described in subsection (c); and
``(C) the activities of which affect interstate or foreign
commerce.
``(3) State.--The term `State' means a State of the United
States, the District of Columbia, and any commonwealth,
territory, or possession of the United States.
``(b) Offense.--
``(1) In general.--Whoever during the commission of an
offense described in paragraphs (1) through (10) of
subsection (c)--
``(A) participates in a criminal street gang with knowledge
that its members engage in or have engaged in a continuing
series of offenses described in subsection (c);
``(B) intends to promote or further the felonious
activities of the criminal street gang or maintain or
increase the person's position in the gang; and
``(C) has been convicted within the past 5 years of an
offense described in subsection (c),
shall be imprisoned for a term that is not more than 10 years
greater than the maximum term provided by statute for the
most serious offense described in paragraphs (1) through (10)
of subsection (c) that the person was found to have committed
as a basis for the person's conviction under this section.
``(2) Construction with other convictions.--A term of
imprisonment imposed under this section shall run
consecutively with any term imposed upon conviction of
another count under the same indictment or information for an
offense described in subsection (c).
``(3) Forfeiture.--A person convicted under this section
shall also forfeit to the United States, notwithstanding any
provision of State law, all property, whether real or
personal, derived directly or indirectly from the offense,
all property used to facilitate the offense, and all property
traceable thereto. The forfeiture shall be in accordance with
the procedures set forth in the Federal Rules of Criminal
Procedure and section 413 of the Controlled Substances Act
(21 U.S.C. 853).
``(c) Predicate Offenses.--The offenses described in this
subsection are as follows:
``(1) A Federal felony involving a controlled substance (as
defined in section 102 of the Controlled Substances Act (21
U.S.C. 802)) for which the maximum penalty is not less than 5
years.
``(2) A Federal felony crime of violence (as defined in
section 16 of this title) against the person of another.
``(3) An offense under section 522 of this title.
``(4) An offense under section 844 of this title.
``(5) An offense under section 875 or 876 of this title.
``(6) An offense under section 1084 or 1955 of this title.
``(7) An offense under section 1956 of this title, to the
extent that the offense is related to an offense involving a
controlled substance.
``(8) An offense under chapter 73 of this title.
``(9) An offense under section 274(a)(1)(A), 277, or 278 of
the Immigration and Nationality Act (8 U.S.C. 1324(a)(1)(A),
1327, 1328)).
``(10) A conspiracy, attempt, or solicitation to commit an
offense described in paragraphs (1) through (9).
``(11) A State offense that would have been an offense
described in paragraphs (1) through (10), if Federal
jurisdiction existed.
(b) Amendment of Special Sentencing Provision.--Section
3582(d) of title 18, United States Code, is amended--
(1) by striking ``chapter 95 (racketeering) or 96
(racketeer influenced and corrupt organizations) of this
title'' and inserting ``section 521 or 522 (criminal street
gangs) of this title, in chapter 95 (racketeering) or 96
(racketeer influenced and corrupt organizations) of this
title,''; and
(2) by inserting ``a criminal street gang or'' before ``an
illegal enterprise''.
(c) Conforming Amendment Relating to Orders for
Restitution.--Section 3663(c)(4) of title 18, United States
Code, is amended by striking ``chapter 46 or chapter 96 of
this title'' and inserting ``section 521 of this title, under
chapter 46 or 96 of this title,''.
SEC. 6. INTERSTATE AND FOREIGN TRAVEL OR TRANSPORTATION IN
AID OF CRIMINAL GANGS.
(a) Travel Act Amendments.--Section 1952 of title 18,
United States Code, is amended--
(1) in subsection (a)--
(A) by striking ``and thereafter performs or attempts to
perform'' and inserting ``and thereafter performs, or
attempts or conspires to perform'';
(B) by striking ``5 years'' and inserting ``10 years''; and
(C) by inserting ``, and may be sentenced to death'' after
``if death results shall be imprisoned for any term of years
or for life'';
[[Page S8211]]
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively;
(3) by inserting after subsection (a) the following new
subsection (b):
``(b) Whoever travels in interstate or foreign commerce or
uses the mail or any facility in interstate or foreign
commerce with intent, by bribery, force, intimidation, or
threat, directed against any person, to delay or influence
the testimony of or prevent from testifying a witness in a
State criminal proceeding, or by any such means to cause any
person to destroy, alter, or conceal a record, document, or
other object, with intent to impair the object's integrity or
availability for use in such a proceeding, and thereafter
performs, or attempts or conspires to perform, an act
described in this subsection shall be fined under this title,
imprisoned not more than 20 years, or both, and if death
results, shall be imprisoned for any term of years or for
life, and may be sentenced to death.''; and
(4) in subsection (c), as so redesignated, by inserting
``assault with a deadly weapon, assault resulting in serious
bodily injury (as defined in section 1365 of this title),
shooting at an occupied dwelling or motor vehicle,
intimidation of or retaliation against a witness, victim,
juror, or informant,'' after ``extortion, bribery,''.
(b) Amendment to Sentencing Guidelines.--Pursuant to its
authority under section 994(p) of title 28, United States
Code, the United States Sentencing Commission shall amend the
Federal Sentencing Guidelines to provide an appropriate
increase in the offense level for violations of section 1952
of title 18, United States Code, as amended by this section.
SEC. 7. INCREASED PENALTIES FOR USING PHYSICAL FORCE TO
TAMPER WITH WITNESSES, VICTIMS, OR INFORMANTS.
(a) In General.--Section 1512 of title 18, United States
Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``as provided in
paragraph (2)'' and inserting ``as provided in paragraph
(3)'';
(B) by redesignating paragraph (2) as paragraph (3);
(C) by inserting after paragraph (1) the following:
``(2) Whoever uses physical force or the threat of physical
force against any person, or attempts to do so, with intent
to--
``(A) influence, delay, or prevent the testimony of any
person in an official proceeding;
``(B) cause or induce any person to--
``(i) withhold testimony, or withhold a record, document,
or other object, from an official proceeding;
``(ii) alter, destroy, mutilate, or conceal an object with
intent to impair the object's integrity or availability for
use in an official proceeding;
``(iii) evade legal process summoning that person to appear
as a witness, or to produce a record, document, or other
object, in an official proceeding; or
``(iv) be absent from an official proceeding to which such
person has been summoned by legal process; or
``(C) hinder, delay, or prevent the communication to a law
enforcement officer or judge of the United States of
information relating to the commission or possible commission
of a Federal offense or a violation of conditions of
probation, supervised release, parole, or release pending
judicial proceedings,
shall be punished as provided in paragraph (3).''; and
(D) in paragraph (3), as so redesignated--
(i) by striking ``and'' at the end of subparagraph (A); and
(ii) by striking subparagraph (B) and inserting the
following:
``(B) in the case of--
``(i) an attempt to murder; or
``(ii) the use, or attempted use, of physical force against
any person,
imprisonment for not more than twenty years; and
``(C) in the case of the use of the threat of physical
force against any person, imprisonment for not more than ten
years.'';
(2) in subsection (b), by striking ``or physical force'';
and
(3) by adding at the end the following:
``(j) Whoever conspires to commit any offense under this
section shall be subject to the same penalties as those
prescribed for the offense the commission of which was the
object of the conspiracy.''.
(b) Retaliating Against a Witness.--Section 1513 of title
18, United States Code, is amended by adding at the end the
following:
``(e) Whoever conspires to commit any offense under this
section shall be subject to the same penalties as those
prescribed for the offense the commission of which was the
object of the conspiracy.''.
(c) Conforming Amendments.--
(1) Witness tampering.--Section 1512 of title 18, United
States Code, is amended in subsections (b)(3) and (c)(2) by
inserting ``supervised release,'' after ``probation''.
(2) Retaliation against a witness.--Section 1513 of title
18, United States Code, is amended in subsections (a)(1)(B)
and (b)(2) by inserting ``supervised release,'' after
``probation''.
SEC. 8. OTHER VIOLENT OFFENSES FREQUENTLY OR TYPICALLY
COMMITTED BY GANGS.
(a) Carjacking.--Section 2119 of title 18, United States
Code, is amended by striking ``, with the intent to cause
death or serious bodily harm''.
(b) Amendments Relating to Violent Crime in Areas of
Exclusive Federal Jurisdiction.--
(1) Assault within maritime and territorial jurisdiction of
united states.--Section 113(a)(3) of title 18, United States
Code, is amended by striking ``with intent to do bodily
harm,''.
(2) Manslaughter.--Section 1112(b) of title 18, United
States Code, is amended by striking ``ten years'' and
inserting ``twenty years''.
(3) Offenses within indian country.--Section 1153(a) of
title 18, United States Code, is amended by inserting ``an
offense for which the maximum statutory term of imprisonment
under section 1363 of this title is greater than five
years,'' after ``a felony under chapter 109A,''.
(4) Racketeer influenced and corrupt organizations.--
Section 1961(1)(A) of title 18, United States Code, is
amended by inserting ``or would have been so chargeable
except that the act or threat (other than gambling) was
committed in Indian country, as defined in section 1151 of
this title, or in any other area of exclusive federal
jurisdiction'' after ``chargeable under State law''.
(c) Amendments to Statutes Punishing Violent Crimes for
Hire or in Aid of Racketeering.--
(1) Murder-for-hire.--Section 1958(a) of title 18, United
States Code, is amended by inserting ``or other felony crime
of violence against the person'' after ``murder''.
(2) Violent crimes in aid of racketeering.--Section 1959 of
title 18, United States Code, is amended--
(A) in subsection (a)--
(i) in paragraph (4)--
(I) by inserting ``specified in paragraphs (1) through
(3)'' after ``threatening to commit a crime of violence'';
and
(II) by striking ``five'' and inserting ``ten'';
(ii) in paragraph (5), by striking ``ten'' and inserting
``twenty'';
(iii) in paragraph (6), by striking ``three'' and inserting
``ten''; and
(B) in subsection (b)--
(i) by striking ``and'' at the end of paragraph (1);
(ii) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(iii) by adding at the end the following new paragraph (3):
``(3) `serious bodily injury' has the meaning set forth in
section 2119 of this title.''.
(d) Conspiracy.--Section 371 of title 18, United States
Code, is amended--
(1) by designating the first paragraph as subsection (a);
(2) in subsection (a), as so designated, by striking
``either to commit any offense against the United States,
or'';
(3) by striking the second paragraph; and
(4) by adding at the end the following new subsection:
``(b) If two or more persons conspire to commit any offense
against the United States, and one or more of such persons do
any act to effect the object of the conspiracy, each shall be
subject to the same penalties as those prescribed for the
most serious offense the commission of which was the object
of the conspiracy, except that the penalty of death shall not
be imposed.''.
SEC. 9. SERIOUS JUVENILE DRUG OFFENSES AS PREDICATE FOR ARMED
CAREER CRIMINAL STATUS.
Section 924(e)(2)(C) of title 18, United States Code, is
amended by inserting ``or serious drug offense'' after
``violent felony''.
SEC. 10. SENTENCING GUIDELINES FOR GANG CRIMES, INCLUDING AN
INCREASE IN OFFENSE LEVEL FOR PARTICIPATION IN
CRIME AS A GANG MEMBER.
Pursuant to its authority under section 994(p) of title 28,
United States Code, the United States Sentencing Commission
shall amend the Federal sentencing guidelines to eliminate
the policy statement in section 5K2.18 of the guidelines
regarding section 521 of title 18, United States Code, and
instead provide a base offense level in chapter 2 of the
guidelines for offenses described in sections 521 and 522 of
title 18, United States Code, that reflects the seriousness
of these offenses. Such guidelines shall include an
appropriate enhancement (which shall be in addition to any
other adjustment under chapter 3 of the Federal Sentencing
guidelines) for any offense described in section 521 if the
offense was both committed in connection with, or in
furtherance of, the activities of a criminal street gang and
the defendant was a member of the gang at the time of the
offense. Such guidelines shall also include an appropriate
enhancement (which shall be in addition to any other
adjustment under chapter 3 of the Federal Sentencing
Guidelines) for a person who, in violating such section 522,
recruits, solicits, induces, commands, or causes another
person residing in another State to be or remain a member of
a criminal street gang, or who crosses a State line with
intent to violate such section 522.
SEC. 11. HIGH INTENSITY INTERSTATE GANG ACTIVITY AREAS.
(a) Definitions.--In this section:
(1) Governor.--The term ``Governor'' means a Governor of a
State or the Mayor of the District of Columbia.
(2) High intensity interstate gang activity area.--The term
``high intensity interstate gang activity area'' means an
area within a State that is designated as a high intensity
interstate gang activity area under subsection (b)(1).
(3) State.--The term ``State'' means a State of the United
States, the District of Columbia, and any commonwealth,
territory, or possession of the United States.
(b) High Intensity Interstate Gang Activity Areas.--
[[Page S8212]]
(1) Designation.--The Attorney General, upon consultation
with the Secretary of the Treasury and the Governors of
appropriate States, may designate as a high intensity
interstate gang activity area a specified area that is
located--
(A) within a State; or
(B) in more than 1 State.
(2) Assistance.--In order to provide Federal assistance to
a high intensity interstate gang activity area, the Attorney
General may--
(A) facilitate the establishment of a regional task force,
consisting of Federal, State, and local law enforcement
authorities, for the coordinated investigation, disruption,
apprehension, and prosecution of criminal activities of gangs
and gang members in the high intensity interstate gang
activity area; and
(B) direct the detailing from any Federal department or
agency (subject to the approval of the head of that
department or agency, in the case of a department or agency
other than the Department of Justice) of personnel to the
high intensity interstate gang activity area.
(3) Criteria for designation.--In considering an area
(within a State or within more than 1 State) for designation
as a high intensity interstate gang activity area under this
section, the Attorney General shall consider--
(A) the extent to which gangs from the area are involved in
interstate or international criminal activity;
(B) the extent to which the area is affected by the
criminal activity of gang members who--
(i) are located in, or have relocated from, other States;
or
(ii) are located in, or have immigrated (legally or
illegally) from, foreign countries;
(C) the extent to which the area is affected by the
criminal activity of gangs that originated in other States or
foreign countries;
(D) the extent to which State and local law enforcement
agencies have committed resources to respond to the problem
of criminal gang activity in the area, as an indication of
their determination to respond aggressively to the problem;
(E) the extent to which a significant increase in the
allocation of Federal resources would enhance local response
to gang-related criminal activities in the area; and
(F) any other criteria that the Attorney General considers
to be appropriate.
(c) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $100,000,000 for each of fiscal years
2002 through 2008, to be used in accordance with paragraph
(2).
(2) Use of funds.--Of amounts made available under
paragraph (1) in each fiscal year--
(A) 60 percent shall be used to carry out subsection
(b)(2); and
(B) 40 percent shall be used to make grants for community-
based programs to provide crime prevention and intervention
services that are designed for gang members and at-risk youth
in areas designated pursuant to this section as high
intensity interstate gang activity areas.
(3) Requirement.--
(A) In general.--The Attorney General shall ensure that not
less than 10 percent of amounts made available under
paragraph (1) in each fiscal year are used to assist rural
States affected as described in subparagraphs (B) and (C) of
subsection (b)(3).
(B) Rural state defined.--In this paragraph, the term
``rural State'' has the meaning given the term in section
1501(b) of title I of the Omnibus Crime Control and Safe
Streets Act of 1968 (42 U.S.C. 3796bb(b)).
SEC. 12. AUTHORITY TO MAKE GRANTS TO PROSECUTORS' OFFICES TO
COMBAT GANG CRIME AND YOUTH VIOLENCE.
(a) In General.--Section 31702 of subtitle Q of title III
of the Violent Crime Control and Law Enforcement Act of 1994
(42 U.S.C. 13862) is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) to allow the hiring of additional prosecutors, so
that more cases can be prosecuted and backlogs reduced;
``(6) to provide funding to enable prosecutors to address
drug, gang, and youth violence problems more effectively;
``(7) to provide funding to assist prosecutors with funding
for technology, equipment, and training to assist prosecutors
in reducing the incidence of, and increase the successful
identification and speed of prosecution of young violent
offenders; and
``(8) to provide funding to assist prosecutors in their
efforts to engage in community prosecution, problem solving,
and conflict resolution techniques through collaborative
efforts with police, school officials, probation officers,
social service agencies, and community organizations.''.
(b) Authorization of Appropriations.--Section 31707 of
subtitle Q of title III of the Violent Crime Control and Law
Enforcement Act of 1994 (42 U.S.C. 13867) is amended to read
as follows:
``SEC. 31707. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
subtitle, $50,000,000 for each of fiscal years 2002 through
2006.''.
SEC. 13. NOTIFICATION AFTER ARREST.
Section 5033 of title 18, United States Code, is amended by
striking ``arresting officer'' each place it appears in the
first and second sentences and inserting ``arresting officer
or another representative of the Attorney General''.
____
Criminal Gang Abatement Act of 2001--Section-by-Section
Section 1
The short title of the bill is the ``Criminal Gang
Abatement Act of 2001.''
Section 2
Adds section 522 to Chapter 26 of title 18, which prohibits
any person from traveling in, or using any facility in,
interstate commerce to recruit or retain a person as a member
of a criminal street gang with the intent that the recruited
or retained individual participate in an offense described in
section 521(c) of the title. Section 521(c) offenses are
Federal felonies involving controlled substances for which
the maximum penalty is not less than five years, a Federal
felony crime of violence involving the use or attempted use
of physical force, and conspiracies to commit either of these
two offenses.
The penalties for violating the section include
imprisonment for not more than 10 years, fines, or both. In
addition, if the individual who was recruited is a minor, the
defendant may be held liable for any costs incurred by the
Federal, State, or local government for housing, maintaining,
and treating the minor until the age of 18.
The term ``criminal street gang'' is amended in section 5
of this bill.
Section 3
Prohibits the intentional use of minors to commit a crime
of violence or to assist in avoiding detection or
apprehension for such an offense. Any first-time offender
shall be subject to twice the maximum term of imprisonment
and fine that would otherwise be authorized for the offense.
For any second or subsequent conviction under the section,
the offender is subject to three times the maximum penalty.
Section 4
Amends 21 U.S.C. 861 to increase the minimum penalty to
three years for any first-time offender who employs or uses a
minor to distribute, receive, or avoid detection of a
controlled substance in violation of the title or title III.
The minimum punishment for a repeat offender is increased to
five years.
Section 5
Amends 18 U.S.C. 521 to transform it from a penalty
enhancement provision to an offense and, in so doing, also
redefines the term ``criminal street gang'' to reduce the
membership requirement from ``5 or more persons'' to ``3 or
more persons.'' The rewriting of section 521 is in response
to Apprendi v. United States, 530 U.S. 466 (2000), in which
the Supreme Court held that any fact that increases the
penalty for a crime beyond the statutory maximum, other than
for a prior conviction, must be treated as an element of the
offense.
The proposed amendment establishes ten predicate offenses
in subsection c. Those offenses are: a Federal felony
involving a controlled substance for which the maximum
penalty is not less than 5 years; a Federal felony crime of
violence; an offense under newly created section 522; an
offense under section 844, (importation, manufacture,
distribution, and storage of explosive materials; an offense
under sections 875 or 876, kidnapping and extortion; an
offense under section 1084 or 1955, illegal gambling; an
offense under section 1956, money laundering, to the extent
it relates to an offense involving a controlled substance; an
offense under chapter 73 of title 18, obstruction of justice;
an offense under section 274(a)(1)(A), 277, or 278 of the
Immigration and Nationality Act, illegal transportation of an
alien; and a conspiracy, attempt, or solicitation to commit
an offense described above.
Any person who commits one of the predicate offenses while
participating in a criminal street gang with the intent of
promoting the felonious activities of the gang, and who has
been convicted within the past five years of one of the
predicate offenses, faces an additional 10-year consecutive
sentence for the predicate crime. The bill also provides for
the forfeiture of any property derived directly or indirectly
from the offense.
The bill also amends 18 U.S.C. 3582(d) to allow the court
to include as part of the sentence for any person convicted
under section 521 or 522 an order requiring the offender
while in prison to not associate or communicate with a
specified person upon a showing of probable cause that the
association or communication is for the purpose of enabling
the offender to be engaged in illegal activity.
Section 6
Amends 18 U.S.C. 1952 to increase the maximum penalty for
traveling in interstate or foreign commerce or using any
facility in interstate or foreign commerce to distribute the
proceeds of any unlawful activity or for promoting, managing,
establishing, carrying on of any unlawful activity from five
years to ten. In addition, the bill authorizes the death
penalty for any person convicted of traveling, or using any
facility, in foreign or interstate commerce to commit any
crime of violence to further an unlawful activity, if that
act of violence results in death. Conspiring to violate the
section is treated the same as an actual or attempted
violation.
The bill amends the section to include new subsection b,
which provides that any person who travels in interstate or
foreign commerce or uses any facility in interstate or
[[Page S8213]]
foreign commerce with the intent to delay or influence the
testimony of or prevent from testifying a witness in a State
criminal proceeding or who seeks to cause any person to
destroy, alter or conceal evidence and thereafter performs,
or attempts or conspires to perform, an act described above
shall be imprisoned not more than 20 years, fined, or both,
and if death results, may be imprisoned for any term of years
or for life, or be sentenced to death.
The proposed section also amends redesignated subsection c
by amending ``unlawful activity'' to include assault with a
deadly weapon, assault resulting in serious bodily injury,
shooting at an occupied dwelling or motor vehicle, and
intimidation of or retaliation against a witness,
victim, juror, or informant.
Finally, the bill directs the United States Sentencing
Commission to amend the Federal Sentencing Guidelines to
provide an appropriate increase in the offense level for
violations of the newly amended section.
Section 7
Amends 18 U.S.C. 1512 to increase the penalties for the use
of physical force or the threat of physical force with the
intent to influence, delay, or prevent the testimony of any
person in an official proceeding.
The bill increases the maximum term of imprisonment for the
use of physical force against any person in violation of the
section from 10 years to 20 years. In the case of the use of
the threat of physical force against any person, the
individual may be imprisoned for not more than ten years.
Identical penalties are assessed for those who conspire to
commit any offense under the section.
Section 8
This section amends various sections of title 18 to address
violent offenses frequently or typically committed by gangs.
Most of the amendments either eliminate a mens rea
requirement or increase the penalty for a violation.
Subsection a amends 18 U.S.C. 2119 by eliminating the
requirement that the offender intend to cause death or
serious bodily harm during a carjacking in order to violate
the section.
Subsection b amends: 1. 18 U.S.C. 113(a)(3), dealing with
assaults within the maritime and territorial jurisdiction of
the United States, by striking the requirement that the
offender intend to do bodily harm when assaulting a person
with a dangerous weapon; 2. 18 U.S.C. 1112(b), dealing with
manslaughter within the maritime and territorial jurisdiction
of the United States, by increasing the maximum penalty for
voluntary manslaughter from ten years to twenty; 3. 18 U.S.C.
1153(a), which deals with offenses committed within Indian
country, by including within the list of offenses subject to
the same law and penalties as all other persons ``an offense
for which the maximum statutory term of imprisonment under
section 1363 of this title is greater than five years''; 4.
18 U.S.C. 1961(1)(A) by including within the definition of
``racketeering activity'' the illegal activities specified in
the section that ``would have been chargeable'' under State
law ``except that the act or threat, other than gambling was
committed in Indian country, as defined in section 1151 of
this title, or in any other area of exclusive
Federal jurisdiction''.
Subsection c amends: 1. 18 U.S.C. 1958(a), dealing with
murder-for-hire, by bringing within the scope of the section
those who travel, or use any facility, in interstate or
foreign commerce with the intent that a felony crime of
violence against the person be committed in violation of the
laws of any State or the United States. As it currently
stands, the section applies only to those who intend that a
murder be committed; 2. 18 U.S.C. 1959, which deals with
violent crimes in aid of racketeering. The bill increases the
penalty for violating various subsections of section 1959.
The maximum punishment for threatening to commit a crime of
violence is increased from five to ten years; for attempting
or conspiring to commit murder or kidnapping is increased
from ten to twenty years; and for attempting or conspiring to
commit a crime involving maiming, assault with a dangerous
weapon, or assault resulting in serious bodily injury is
increased from three to ten years. The amendment also
incorporates the definition of ``serious bodily injury'' set
forth in section 2119 of the title as the term was previously
undefined within the section.
Subsection d amends 18 U.S.C. 371, dealing with
conspiracies to commit offenses against or to defraud the
United States. The bill strikes the second paragraph of
section 371, dealing with conspiracies involving
misdemeanors. A second subsection is added that provides that
if two or more persons conspire to commit any offense against
the United States, and one or more such persons acts on the
conspiracy, each shall be subject to the same penalties as
those prescribed for the most serious offense that was the
object of the conspiracy, except that the penalty of death
shall not be imposed.
Section 9
Amends the term ``conviction'' in 18 U.S.C. 924(e)(2)(C),
part of the Armed Career Criminal Act, to include an act of
juvenile delinquency involving serious drug offenses.
Section 10
Requires the United States Sentencing Commission to amend
the Federal sentencing guidelines to eliminate the policy
statement in section 5K2.18 dealing with sentence enhancement
for gang crimes. As with the amendment to 18 U.S.C. 521 in
section 5 of the bill, the deletion is in response to the
recent decision in Apprendi v. New Jersey, 530 U.S. 466
(2000).
Instead of the to-be-deleted and no longer appropriate
policy statement, the proposed amendment directs the
Commission to provide a base offense level for offenses
described in 18 U.S.C. 521 and 522 that reflects the
seriousness of the offenses-including an appropriate
enhancement for any offense described in section 521
committed by a member of a criminal street gang in connection
with the activities of the gang. The guidelines are also to
include an appropriate enhancement for a person who, in
violating section 522, recruits, solicits, induces,
commands, or causes another person residing in another
State to be or remain a member of a criminal street gang,
or who crosses a State line with intent to violate section
522.
Section 11
Permits the Attorney General to designate an area as a high
intensity interstate gang activity area. The Attorney General
makes such designation upon consultation with the Secretary
of the Treasury and the Governors of the appropriate States.
In making such designation, the Attorney General considers
the extent to which gangs from the area are involved in
interstate or international criminal activity, the extent to
which the area is affected by the criminal activity of gang
members who are located in, or have relocated from, other
States or foreign countries, the extent to which State and
local law enforcement agencies have committed resources to
respond to the problem of criminal gang activity in the area,
the extent to which a significant increase in the allocation
of Federal resources would enhance local response to gang-
related criminal activity in the area, and any other criteria
deemed appropriate.
After such designation, the Attorney General may provide
assistance to the area by facilitating the establishment of a
regional task force, consisting of Federal, State, and local
law enforcement, for the coordinated investigation,
disruption, apprehension, and prosecution of criminal
activities of gangs and gang members in the area. In
addition, the Attorney General may direct the detailing from
any Federal department or agency, subject to the approval of
the head of that department or agency of personnel to the
high intensity interstate gang activity area.
The bill authorizes $100,000,000 for each of fiscal years
2002 through 2008. Sixty percent of the appropriation is to
be used to carry out the activities described above. The
remainder is to be used to make grants for community-based
programs to provide crime prevention and intervention
services that are designed for gang members and at-risk youth
in the designated areas. The bill further requires the
Attorney General to ensure that not less than 10 percent of
the amounts spent each fiscal year are used to assist rural
States.
Section 12
Amends the Violent Crime Control and Law Enforcement Act of
1994, 42 U.S.C. 13862, to permit additional uses for grants
made by the Attorney General under the section. The
additional uses are: to hire additional prosecutors; to
provide funding to enable prosecutors to address drug, gang,
and youth violence problems more effectively; to provide
funding to assist prosecutors with funding for technology,
equipment, and training; and to provide funding to assist
prosecutors in their efforts to engage in community
prosecution, problem solving, and conflict resolution
techniques through collaborative efforts with police, school
officials, probation officers, social service agencies, and
community organizations.
The bill authorizes the appropriation of $50,000,000 for
each of fiscal years 2002 through 2006 to carry out the
subtitle.
Section 13
Amends 18 U.S.C. 5033 so that government officials, other
than the arresting officer, may advise juveniles of their
rights, notify the Attorney General, and notify the
juvenile's parents of the juvenile's detainment and rights.
This provision clarifies a provision that has been
interpreted in an overly literal manner by the Ninth Circuit
and is now causing numerous problems for law enforcement in
that circuit. See United States v. Juvenile (RRA-A), 229 F.3d
737, 748 (9th Cir. 2000) (Trott, J., dissenting).
______
By Mr. INOUYE:
S. 1237. A bill to allow certain individuals of Japanese ancestry who
were brought forcibly to the United States from countries in Latin
America during World War II and were interned in the United States to
be provided restitution under the Civil Liberties Act of 1988, and for
other purposes; to the Committee on the Judiciary.
Mr. INOUYE. Mr. President, I rise to introduce the Wartime Parity and
Justice Act of 2001, the Senate companion bill to H.R. 619. Among other
things, the bill provides restitution to Latin Americans of Japanese
ancestry who were brought to the United States, then interned in
Immigration and Naturalization Service camps during World War II.
Between December, 1941, to February, 1948, more than 2,000 men,
[[Page S8214]]
women, and children of Japanese ancestry were relocated from thirteen
Latin American countries to the United States. During World War II, the
United States had these individuals shipped to the United States to be
traded with the Japanese Government for American prisoners of war. Of
this number, approximately 800 were traded for American prisoners of
war. The remaining individuals were placed in internment camps
throughout the United States.
The governments of those thirteen Latin American countries cooperated
with the United States because they received millions of dollars in
monetary compensation for their assistance. Much like their Japanese
American counterparts in the United States, these people were selected
merely because of their ethnic origin.
The big difference, however, is that the United States made an effort
to redress the wrong committed against the Japanese Americans. The
Civil Liberties Act of 1988, signed into law by President Reagan,
allowed for monetary compensation of $20,000 and an apology from the
United States Government to all Japanese Americans interned in camps
throughout the country. More than 120,000 Japanese Americans were
placed into these internment camps because they were a ``threat'' to
national security. To this day, not one case of sabotage or espionage
by Japanese Americans during World War II has been uncovered by the
United States Government.
Japanese Latin Americans were not an eligible class under the Civil
Liberties Act of 1988 even though they suffered under the same
conditions experienced by their Japanese American counterparts.
In 1996, Japanese Latin Americans sued the United States Government
in Mochizuki v. the United States of America. Through the settlement of
this case, the Japanese Latin Americans were eventually awarded $5,000
each, along with a letter of apology signed by President Clinton. The
settlement agreement explicitly allows for further action by Congress
to fund Japanese Latin American redress, in light of the fact that
Japanese Americans were allowed $20,000 under the Civil Liberties Act
of 1988.
My bill will allow us to correct this inequity by offering $20,000 to
eligible Japanese Latin Americans. The Japanese Latin Americans who
chose to accept their $5,000 award would be offered up to an additional
$15,000 each. This bill would also reauthorize the educational mandate
in the Act to continue research and education efforts, ensuring the
internees' experiences will be remembered, and hopefully, to prevent
recurrences.
______
By Mr. WELLSTONE (for himself and Mr. Dayton):
S. 1238. A bill to promote the engagement of young Americans in the
democratic process through civic education in classrooms, in service
learning programs, and in student leadership activities, of America's
public schools; to the Committee on Health, Education, Labor, and
Pensions.
Mr. WELLSTONE. Mr. President, I hope that colleagues will support a
bill I am introducing today: the Hubert H. Humphrey Civic Education
Enhancement Act. Senator Dayton joins me as an original co-sponsor of
this legislation. As a co-sponsor of Senator Dodd's electoral reform
bill, I look forward to a debate later this year on a strong electoral
reform measure that will ensure that all Americans who wish to vote be
able to do so easily and without facing acts of intimidation and to do
so using equipment that ensures all votes will be counted. However, as
we think about reforming the methods through which our democracy is
practiced on Election Day, we should focus attention on an issue that
arguably presents a challenge to the vibrancy of that democracy that is
even more fundamental: the decline of young Americans' engagement in
public affairs. Turning the tide on political detachment by young
persons through a new commitment to civic education in our public
schools is the purpose of the Humphrey Act.
Civic knowledge, civic intellectual skills, civic participation
skills, and civic virtue on the part of the American citizenry are all
crucial for the vitality of a healthy representative democracy. But,
there is growing evidence that many of our younger citizens are lagging
in all of the components necessary for their effective engagement in
public life as they enter adulthood. Because all these skills and
values are vital to effective citizenship, a multifaceted approach to
enhancing civic education in our Nation's elementary and secondary
schools, expressed in the Humphrey Act, is a true national priority.
There are numerous pieces of evidence for a crisis in civic education
that threatens the future vibrancy of our democracy. The most recent
nationwide survey of incoming college freshmen conducted by the Higher
Education Research Institute at the University of California at Los
Angeles reports that only 28.1 percent of the students entering college
in the fall of 2000 reported an interest in ``keeping up to date with
political affairs.'' This was the lowest level in the 35 year history
of the survey. In 1966, 60.3 percent of students reported an interest
in political affairs. In addition, the 1998 National Assessment of
Educational Progress, NAEP, Civics Assessment revealed startling
results in terms of American students' competence in civics at grade
levels 4, 8, and 12. At each grade level the percentage of students
shown to be ``Below Basic'' outnumbered the percentage in the ``At or
above Proficient'' and ``Advanced'' levels combined. Thirty-one percent
of fourth-grade students, thirty percent of eighth-graders, and thirty-
five percent of high school seniors were ``Below Basic'' in their
civics achievement. And, a 1999 study published by the Lyndon B.
Johnson School of Public Affairs at The University of Texas at Austin
showed that the introduction of mandated state assessments in other
fields, but typically not in civics, has resulted in a reduction in the
amount of class time spent on civics.
Moreover, in the years after leaving high school, young Americans are
becoming less engaged in the democratic process. While 50 percent of
Americans between the ages of 18 and 25 voted in 1972, only 38 percent
of that age group voted in 2000. And, according to a Harvard University
survey published in 2000, 85 percent of young people now say that
volunteer work is better than political engagement as a way to solve
important issues. It is this evidence that links this effort directly
to any serious electoral reform effort. Therefore, it is time for a
serious national response to all of these troubling indicators on the
civic health of those that we are relying upon to be thoughtful, active
citizens in the years ahead. The vibrancy of American elections of the
future depend upon our revitalizing civic education today.
It is most appropriate that this legislation focused on enhancing
civic education would also serve as a memorial to one of the great
Minnesotans of the twentieth century, Hubert H. Humphrey. As a
political scientist, Mayor of St. Paul, United States Senator and as
Vice President of the United States, Hubert H. Humphrey exemplified
thoroughly the application of civic knowledge, civic intellectual
skills, civic participation skills, and civic virtue in our
representative democracy. As a teacher of political science at
Macalester College, Hubert Humphrey made the case to students that, to
be effective citizens, they must be informed about the political
process and be analytical about the issues of their time as they take
stances on them. By becoming active in party politics and, eventually,
by running for office, Humphrey was a role model of a participant in
the democratic experience at the local, State, and national levels. His
belief in promoting public service was also shown in his nonstop work,
beginning in his first campaign for President in 1960, in envisioning
and supporting the Peace Corps program. Finally, Hubert Humphrey stood
firm in his principles on so many occasions, exemplifying the civic
virtue that is a crucial ingredient of complete citizenship. His moving
oratory supporting President Truman's civil rights proposals at the
1948 Democratic National Convention helped to shift his political party
and, eventually, the entire nation on one of the fundamental issues of
his time. He showed fortitude in speech after speech and vote after
vote on the floor of this Senate in expressing his heartfelt duty to
support America's neediest citizens. As he put it: ``The moral test of
government is how that
[[Page S8215]]
government treats those who are in the dawn of life, the children;
those who are in the twilight of life, the elderly; and those who are
in the shadows of life, the sick, the needy and the handicapped.''
There simply is no more worthy person to memorialize in a new
significant national commitment to civic education than Hubert H.
Humphrey.
Recognizing that there is no single answer to revitalizing civic
engagement in young Americans, the Humphrey Act includes five sections,
each centered on bettering a different aspect of civic education in the
elementary and secondary schools of America. Together, these five
components of the Humphrey Act offer a thoughtful step forward in
American civic education.
First, in decades past, new and veteran teachers in the field of
social studies had high-quality professional development opportunities
made available to them through programs funded by the federal
government as part of the National Defense Education Act, the Education
Professional Development Act, the National Science Foundation, and
other programs designed by the Department of Education. In recent
years, most of these federally-funded opportunities, particularly
helpful for new teachers, have disappeared. Social studies teachers,
most of whom are now nearing retirement age, have told me how crucial
these programs, generally in the format of summer institutes, were in
aiding their ability to excite and inform their students about civics.
We need to offer the same opportunities to younger civics teachers and
the same benefits of good civics teachers to their students. Therefore,
the Humphrey Act authorizes, at $25 million annually, summer Civics
Institutes to promote creative curricula and pedagogy. The
establishment of a new set of university and college campus-based
summer institutes for teachers of all grades focused both on enlarging
the teachers' knowledge of specific content as well as helping them to
teach civics in exciting ways is a way that the Federal Government can
play a role in quickly making a difference in enhancing the civics
classroom for America's students.
Next, when high in quality, service learning programs have been shown
to increase student efficacy in public affairs and to enhance students'
knowledge of how government works and how social change can be brought
about. For instance, according to a 1997 study, high school students
who participated in service learning programs have been shown to be
more engaged in community organizations and to vote than their
nonparticipant counterparts 15 years after their service learning
experiences. I know that many of my colleagues have heard stories from
students and educators engaged in service learning that add depth to
this data. I will recount just one description of a recent school-based
service learning program in Huntsville, Alabama, coordinated by the St.
Paul-based National Youth Leadership Council, that exemplifies the
power of service learning as a force in civic education. After the 8th
grade students on a field trip to a historic cemetery discovered that
it had been ``whites only,'' a second field trip discovered the burial
site for the town's African-Americans in the 19th century. That
cemetery was found to be in a deplorable state, with vandalized
headstones, unmarked graves, and poorly kept records. The students key
question: ``What are we going to do about it?'' This led to the
creation of the African American History Project and any number of
learning experiences emanating out of this service to accurately
rehabilitate the cemetery: Math classes platted the unmapped cemetery;
history students undertook oral histories; research on those buried in
the cemetery took students to the court records and to the pages of a
19th century black newspaper. One of the results of the endeavor was
the development of a curriculum on the history of African-Americans in
Huntsville for third-graders by the middle-school students with the
assistance of their teachers. In this case, service and learning were
almost entirely interwoven.
It is crucial, however, to connect service learning experiences to
classroom civics curriculum to long-term payoff in terms of promoting
students' involvement in public affairs. The Humphrey Act would
increase the authorization of funds for the school-based Learn and
Serve Program and would authorize Service Learning Institutes dedicated
to training/retraining service learning teachers. Raising the
authorization level of the school-based Learn and Serve program to $65
million would allow an expansion of a program for which the funding
levels have been flat in recent fiscal years and would enhance states
and local districts to more sharply link service learning programs to
civic knowledge and engagement. Moreover, presently there is little
money left for the professional development of new service learning
instructors, including mid-career teachers who are interested in being
retrained in service learning. Therefore, it is important to develop a
summer campus-based Service Learning Institutes program, to parallel
the Civics Institutes program. Great strides have been made in the
field of service learning in recent years even with a limited federal
investment; it is time for this national investment to increase in the
interest of the future vitality of our democracy.
Third, we should do more to encourage local schools' innovation in
the development of community service programs that explicitly link
volunteer activities to social change in their communities. Therefore,
the Humphrey Act incorporates provisions of a bill introduced in the
House of Representatives by Representative Lindsey Graham to make
spending on community service programs an allowable use of funds for
districts under the ``innovative programs'' section of the Elementary
and Secondary Education Act. Specifically, it would allow local schools
to use federal money to fund community service programs which ``train
and mobilize young people to measurably strengthen their communities
through nonviolence, responsibility, compassion, respect, and moral
courage.'' I applaud the philosophy and work of Do Something, an
national organization founded in 1993 guided by the principle that
young people could change the world if they believed in themselves and
had the tools to take action. Using a project-centered approach, Do
Something recognizes young people as effective leaders and, in the
projects that they have promoted in hundreds of communities linking
students and caring educators together, they have helped young persons
turn their ideas into action. This section of the Humphrey Act would
promote the work of Do Something and other local community service
endeavors in schools all over the country.
Next, our Nation's public middle and high schools often miss
opportunities to develop and support student governments that are
viable voices for students in the operations of those schools. A 1996
study by the National Association of Secondary School Principals showed
that fewer than half of high school students believed that their
student government ``affects decisions about co-curricular
activities.'' Barely one-third expressed confidence in those
governments' ability to ``affect decisions about school rules.'' We
should also be concerned about the decline in participation in student
leadership activities. Between 1972 and 1992, student government
participation fell by 20 percent and work on student publications fell
by 7 percent. Effective, innovative student government in which the
representatives of the students are connected to the decision-making
processes in the school do more than simply enhance the experiences of
those who are in the elected student leadership positions. It also
sends the message to those leaders' constituents that participation in
politics and government can truly make a difference in one's daily
life. Dynamic student leadership experiences can make a difference in
promoting the civic education within America's middle-schools and high
schools. Therefore, this bill develops a competitive grants program to
provide funding for school districts to use in strengthening student
government programs. In a similar manner, student engagement in local
or state government activities or on school boards can be crucial in
allowing young persons to experience first-hand early in their lives
that participation does indeed matter. At present, in some communities,
high school students are explicitly involved in the activities of city
government and school boards; we should do all we can to make that more
common. The grant programs in this
[[Page S8216]]
portion of the Humphrey Act, therefore, also may be used to develop
innovative programs for student engagement in governmental activities.
Finally, while a variety of civics education enhancement programs
have been implemented through Federal Government efforts and at the
state and local level, no comprehensive, national research exists on
the short- and long-term efficacy of such programs in encouraging civic
knowledge and other learning or in promoting civic engagement. This
contrasts with the extensive research on the effectiveness of different
approaches to the teaching of reading and mathematics that has driven
decisions about curricula in those fields. Therefore, the final section
of the legislation authorizes the Department of Education's Office of
Educational Research and Improvement, OERI, to carry out an extensive
five-year research project on the frequency and efficacy of different
approaches employed in civic education, with attention given to their
effectiveness with different subgroups of students. These include
traditional classroom-based civics education, the federally-funded ``We
the People . . . the Citizen and the Constitution'' curricular program,
experiential learning programs such as the Close Up program, service
learning, student government, as well as more innovative programs such
as the ``public works'' approach to civic engagement, designed by the
Hubert Humphrey Institute of Public Affairs at the University of
Minnesota, that involve work on common projects of civic benefit with a
focus on bringing together individuals with ideological, cultural,
racial, income, and other differences in carrying out the project. So
that we make wise curricular and funding decisions in the future we
need to know which approaches, and combinations of approaches, to civic
education are the most effective in achieving the outcomes we expect.
We should celebrate the efforts of all who have been involved in the
civic education of America's students. This bill does not denigrate
their efforts. But, because the engagement in public affairs by our
young people is so important for the long-term health of our democracy,
it is time to take a step forward in establishing a comprehensive new
federal commitment to civic education. The Humphrey Civic Education
Enhancement Act combines new commitments to the professional
development of civics teachers, an increase in funding for school-based
service learning and the professional development of service learning
teachers, local innovation in community service programs in schools,
and an encouragement of a revitalized student involvement in student
leadership programs and in local government. I am proud that a broad
range of organizations recognize the need for this legislation and have
endorsed this bill. These include the National Council of the Social
Studies, the State Education Agency K-12 Service-Learning Network, the
National Youth Leadership Council, Do Something, the National Community
Service Coalition, Earth Force, Youth Service America, the American
Youth Policy Forum, the National Association of Secondary School
Principals, and the National Association of Student Councils.
Hubert Humphrey said, ``It is not enough to merely defend democracy.
To defend it may be to lose it; to extend it is to strengthen it.
Democracy is not property; it is an idea.'' Let us extend democracy
and, in so doing, create a new generation of civic engagement. I
strongly urge my colleagues to memorialize Hubert H. Humphrey and his
life of civic engagement with the passage of this legislation.
______
By Mr. HAGEL (for himself, Mr. Ensign, and Mr. Lugar):
S. 1239. A bill to amend title XVIII of the Social Security Act to
provide medicare beneficiaries with a drug discount card that ensures
access to affordable outpatient prescription drugs; to the Committee on
Finance.
Mr. HAGEL. 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. 1239
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Medicare
Rx Drug Discount and Security Act of 2001''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Voluntary Medicare Outpatient Prescription Drug Discount and
Security Program.
``Part D--Voluntary Medicare Outpatient Prescription Drug Discount and
Security Program
``Sec. 1860. Definitions.
``Subpart 1--Establishment of Voluntary Medicare Outpatient
Prescription Drug Discount and Security Program
``Sec. 1860A. Establishment of program.
``Sec. 1860B. Enrollment.
``Sec. 1860C. Providing enrollment and coverage information to
beneficiaries.
``Sec. 1860D. Enrollee protections.
``Sec. 1860E. Annual enrollment fee.
``Sec. 1860F. Benefits under the program.
``Sec. 1860G. Selection of entities to provide prescription drug
coverage.
``Sec. 1860H. Payments to eligible entities for administering the
catastrophic benefit.
``Sec. 1860I. Determination of income levels.
``Sec. 1860J. Appropriations.
``Subpart 2--Establishment of the Medicare Prescription Drug Agency
``Sec. 1860S. Medicare Prescription Drug Agency.
``Sec. 1860T. Commissioner; Deputy Commissioner; other officers.
``Sec. 1860U. Administrative duties of the Commissioner.
``Sec. 1860V. Medicare Competition and Prescription Drug Advisory
Board.''.
Sec. 3. Commissioner as member of the board of trustees of the medicare
trust funds.
Sec. 4. Exclusion of part D costs from determination of part B monthly
premium.
Sec. 5. Medigap revisions.
SEC. 2. VOLUNTARY MEDICARE OUTPATIENT PRESCRIPTION DRUG
DISCOUNT AND SECURITY PROGRAM.
(a) Establishment of Program.--Title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.) is amended by
redesignating part D as part E and by inserting after part C
the following new part:
``Part D--Voluntary Medicare Outpatient Prescription Drug Discount and
Security Program
``definitions
``Sec. 1860. In this part:
``(1) Commissioner.--The term `Commissioner' means the
Commissioner of Medicare Prescription Drugs appointed under
section 1860S(a).
``(2) Covered outpatient drug.--
``(A) In general.--Except as provided in subparagraph (B),
the term `covered outpatient drug' means--
``(i) a drug that may be dispensed only upon a prescription
and that is described in clause (i) or (ii) of subparagraph
(A) of section 1927(k)(2); or
``(ii) a biological product or insulin described in
subparagraph (B) or (C) of such section.
``(B) Exclusions.--
``(i) In general.--The term `covered outpatient drug' does
not include drugs or classes of drugs, or their medical uses,
which may be excluded from coverage or otherwise restricted
under section 1927(d)(2), other than those restricted under
subparagraph (E) of such section (relating to smoking
cessation agents).
``(ii) Avoidance of duplicate coverage.--A drug prescribed
for an individual that would otherwise be a covered
outpatient drug under this part shall not be considered to be
such a drug if payment for the drug is available under part A
or B (but such drug shall be so considered if such payment is
not available because the eligible beneficiary has exhausted
benefits under part A or B), without regard to whether the
individual is entitled to benefits under part A or enrolled
under part B.
``(3) Eligible beneficiary.--The term `eligible
beneficiary' means an individual who is--
``(A) eligible for benefits under part A or enrolled under
part B; and
``(B) not eligible for prescription drug coverage under a
medicaid plan under title XIX.
``(4) Eligible entity.--The term `eligible entity' means
any entity that the Commissioner determines to be appropriate
to provide the benefits under this part, including--
``(A) pharmaceutical benefit management companies;
``(B) wholesale and retail pharmacy delivery systems;
``(C) insurers;
``(D) Medicare+Choice organizations;
``(E) other entities; or
``(F) any combination of the entities described in
subparagraphs (A) through (E).
``(5) Poverty line.--The term `poverty line' means the
income official poverty line (as defined by the Office of
Management and Budget, and revised annually in accordance
with section 673(2) of the Omnibus Budget Reconciliation Act
of 1981) applicable to a family of the size involved.
[[Page S8217]]
``Subpart 1--Establishment of Voluntary Medicare Outpatient
Prescription Drug Discount and Security Program
``establishment of program
``Sec. 1860A. (a) Provision of Benefit.--The Commissioner
shall establish a Medicare Outpatient Prescription Drug
Discount and Security Program under which an eligible
beneficiary may voluntarily enroll and receive benefits under
this part through enrollment with an eligible entity with a
contract under this part.
``(b) Program To Begin in 2003.--The Commissioner shall
establish the program under this part in a manner so that
benefits are first provided for months beginning with January
2003.
``(c) Voluntary Nature of Program.--Nothing in this part
shall be construed as requiring an eligible beneficiary to
enroll in the program under this part.
``(d) Financing.--The costs of providing benefits under
this part shall be payable from the Federal Supplementary
Medical Insurance Trust Fund established under section 1841.
``enrollment
``Sec. 1860B. (a) Enrollment Under Part D.--
``(1) Establishment of process.--
``(A) In general.--The Commissioner shall establish a
process through which an eligible beneficiary (including an
eligible beneficiary enrolled in a Medicare+Choice plan
offered by a Medicare+Choice organization) may make an
election to enroll under this part. Except as otherwise
provided in this subsection, such process shall be similar to
the process for enrollment under part B under section 1837.
``(B) Requirement of enrollment.--An eligible beneficiary
must enroll under this part in order to be eligible to
receive the benefits under this part.
``(2) Enrollment periods.--
``(A) In general.--Except as provided under subparagraph
(B) or (C), an eligible beneficiary may not enroll in the
program under this part during any period after the
beneficiary's initial enrollment period under part B (as
determined under section 1837).
``(B) Special enrollment period.--In the case of eligible
beneficiaries that have recently lost eligibility for
prescription drug coverage under a medicaid plan under title
XIX, the Commissioner shall establish a special enrollment
period in which such beneficiaries may enroll under this
part.
``(C) Open enrollment period in 2003 for current
beneficiaries.--The Commissioner shall establish a period,
which shall begin on the date on which the Commissioner first
begins to accept elections for enrollment under this part and
shall end on December 31, 2003, during which any eligible
beneficiary may--
``(i) enroll under this part; or
``(ii) enroll or re-enroll under this part after having
previously declined or terminated such enrollment.
``(3) Period of coverage.--
``(A) In general.--Except as provided in subparagraph (B)
and subject to subparagraph (C), an eligible beneficiary's
coverage under the program under this part shall be effective
for the period provided under section 1838, as if that
section applied to the program under this part.
``(B) Enrollment during open and special enrollment.--
Subject to subparagraph (C), an eligible beneficiary who
enrolls under the program under this part under subparagraph
(B) or (C) of paragraph (2) shall be entitled to the benefits
under this part beginning on the first day of the month
following the month in which such enrollment occurs.
``(C) Limitation.--Coverage under this part shall not begin
prior to January 1, 2003.
``(4) Part d coverage terminated by termination of coverage
under parts a and b or eligibility for medical assistance.--
``(A) In general.--In addition to the causes of termination
specified in section 1838, the Commissioner shall terminate
an individual's coverage under this part if the individual
is--
``(i) no longer enrolled in part A or B; or
``(ii) eligible for prescription drug coverage under a
medicaid plan under title XIX.
``(B) Effective date.--The termination described in
subparagraph (A) shall be effective on the effective date
of--
``(i) the termination of coverage under part A or (if
later) under part B; or
``(ii) the coverage under title XIX.
``(b) Enrollment With Eligible Entity.--
``(1) Process.--
``(A) In general.--The Commissioner shall establish a
process through which an eligible beneficiary who is enrolled
under this part shall make an annual election to enroll with
any eligible entity that has been awarded a contract under
this part and serves the geographic area in which the
beneficiary resides.
``(B) Rules.--In establishing the process under
subparagraph (A), the Commissioner shall use rules similar to
the rules for enrollment and disenrollment with a
Medicare+Choice plan under section 1851 (including the
special election periods under subsection (e)(4) of such
section).
``(2) Medicare+choice enrollees.--An eligible beneficiary
who is enrolled under this part and enrolled in a
Medicare+Choice plan offered by a Medicare+Choice
organization must enroll with an eligible entity in order to
receive benefits under this part. The beneficiary may elect
to receive such benefits from the Medicare+Choice
organization in which the beneficiary is enrolled if the
organization has been awarded a contract under this part.
``(3) Competition.--Eligible entities with a contract under
this part shall compete for beneficiaries on the basis of
discounts, formularies, pharmacy networks, and other services
provided for under the contract.
``(c) Enrollment Period for Benefits in 2003.--The
processes developed under subsections (a) and (b) shall
ensure that eligible beneficiaries are permitted to enroll
under this part and with an eligible entity prior to January
1, 2003, in order to ensure that coverage under this part is
effective as of such date.
``providing enrollment and coverage information to beneficiaries
``Sec. 1860C. (a) Activities.--The Commissioner shall
provide for activities under this part to broadly disseminate
information to eligible beneficiaries (and prospective
eligible beneficiaries) regarding enrollment under this part
and the prescription drug coverage made available by eligible
entities with a contract under this part.
``(b) Special Rule for First Enrollment Under the
Program.--To the extent practicable, the activities described
in subsection (a) shall ensure that eligible beneficiaries
are provided with such information at least 60 days prior to
the first enrollment period described in section 1860B(c).
``enrollee protections
``Sec. 1860D. (a) Guaranteed Issue and Nondiscrimination.--
``(1) Guaranteed issue.--
``(A) In general.--An eligible beneficiary who is eligible
to enroll with an eligible entity under section 1860B(b) for
prescription drug coverage under this part at a time during
which elections are accepted under this part with respect to
the coverage shall not be denied enrollment based on any
health status-related factor (described in section 2702(a)(1)
of the Public Health Service Act) or any other factor.
``(B) Medicare+choice limitations permitted.--The
provisions of paragraphs (2) and (3) (other than subparagraph
(C)(i), relating to default enrollment) of section 1851(g)
(relating to priority and limitation on termination of
election) shall apply to eligible entities under this
subsection.
``(2) Nondiscrimination.--An eligible entity offering
prescription drug coverage under this part shall not
establish a service area in a manner that would discriminate
based on health or economic status of potential enrollees.
``(b) Dissemination of Information.--
``(1) General information.--An eligible entity with a
contract under this part shall disclose, in a clear,
accurate, and standardized form to each eligible beneficiary
enrolled for prescription drug coverage with such entity
under this part at the time of enrollment and at least
annually thereafter, the information described in section
1852(c)(1) relating to such prescription drug coverage. Such
information includes the following:
``(A) Access to covered outpatient drugs, including access
through pharmacy networks.
``(B) How any formulary used by the eligible entity
functions.
``(C) Grievance and appeals procedures.
``(2) Disclosure upon request of general coverage,
utilization, and grievance information.--Upon request of an
eligible beneficiary, the eligible entity shall provide the
information described in section 1852(c)(2) (other than
subparagraph (D)) to such beneficiary.
``(3) Response to beneficiary questions.--Each eligible
entity offering prescription drug coverage under this part
shall have a mechanism for providing specific information to
enrollees upon request. The entity shall make available,
through an Internet website and in writing upon request,
information on specific changes in its formulary.
``(c) Access to Covered Benefits.--
``(1) Ensuring pharmacy access.--
``(A) In general.--Each eligible entity with a contract
under this part shall permit any pharmacy located in the area
covered by such contract to participate in the pharmacy
network of the eligible entity if the pharmacy agrees to
accept such operating terms as the eligible entity may
specify, including any fee schedule, requirements relating to
covered expenses, and quality standards relating to the
provision of prescription drug coverage.
``(B) Construction.--Nothing in this paragraph shall be
construed as requiring a pharmacy to participate in a
pharmacy network of an eligible entity with a contract under
this part to participate in any other coverage program of the
eligible entity.
``(2) Access to negotiated prices for prescription drugs.--
For requirements relating to the access of an eligible
beneficiary to negotiated prices (including applicable
discounts), see section 1860F(a).
``(3) Requirements on development and application of
formularies.--Insofar as an eligible entity with a contract
under this part uses a formulary, the following requirements
must be met:
``(A) Formulary committee.--The eligible entity must
establish a pharmaceutical and therapeutic committee that
develops the formulary. Such committee shall include at least
1 physician and at least 1 pharmacist.
``(B) Inclusion of drugs in all therapeutic categories.--
The formulary must include drugs within all therapeutic
categories and classes of covered outpatient drugs (although
not necessarily for all drugs within such categories and
classes).
[[Page S8218]]
``(C) Appeals and exceptions to application.--The entity
must have, as part of the appeals process under subsection
(f)(2), a process for appeals for denials of coverage based
on such application of the formulary.
``(d) Cost and Utilization Management; Quality Assurance;
Medication Therapy Management Program.--
``(1) In general.--For purposes of providing access to
negotiated benefits under section 1860F(a) and the
catastrophic benefit described in section 1860F(b), the
eligible entity shall have in place--
``(A) an effective cost and drug utilization management
program, including appropriate incentives to use generic
drugs, when appropriate;
``(B) quality assurance measures and systems to reduce
medical errors and adverse drug interactions, including a
medication therapy management program described in paragraph
(2); and
``(C) a program to control fraud, abuse, and waste.
``(2) Medication therapy management program.--
``(A) In general.--A medication therapy management program
described in this paragraph is a program of drug therapy
management and medication administration provided by a
community-based pharmacy that is designed to ensure that
prescription drugs made available under this part are
appropriately used to achieve therapeutic goals and reduce
the risk of adverse events, including adverse drug
interactions.
``(B) Elements.--Such program shall include--
``(i) enhanced beneficiary understanding of such
appropriate use through beneficiary education, counseling,
and other appropriate means; and
``(ii) increased beneficiary adherence with prescription
medication regimens through medication refill reminders,
special packaging, and other appropriate means.
``(C) Development of program in cooperation with licensed
pharmacists.--The program shall be developed in cooperation
with licensed pharmacists and physicians.
``(D) Considerations in pharmacy fees.--An eligible entity
with a contract under this part shall establish fees for
pharmacists, pharmacies, and others providing services under
the medication therapy management program that take into
account the resources and time used in implementing the
program.
``(3) Treatment of accreditation.--Section 1852(e)(4)
(relating to treatment of accreditation) shall apply to
prescription drug coverage provided under this part with
respect to the following requirements, in the same manner as
they apply to Medicare+Choice plans under part C with respect
to the requirements described in a clause of section
1852(e)(4)(B):
``(A) Subsection (c)(1) (relating to access to covered
benefits).
``(B) Subsection (g) (relating to confidentiality and
accuracy of enrollee records).
``(e) Grievance Mechanism.--Each eligible entity shall
provide meaningful procedures for hearing and resolving
grievances between the organization (including any entity or
individual through which the eligible entity provides covered
benefits) and eligible beneficiaries enrolled with the entity
under this part in accordance with section 1852(f).
``(f) Coverage Determinations, Reconsiderations, and
Appeals.--
``(1) In general.--An eligible entity shall meet the
requirements of section 1852(g) with respect to covered
benefits under the prescription drug coverage it offers under
this part in the same manner as such requirements apply to a
Medicare+Choice organization with respect to benefits it
offers under a Medicare+Choice plan under part C.
``(2) Appeals of formulary determinations.--Under the
appeals process under paragraph (1) an individual who is
enrolled with an eligible entity with a contract under this
part for prescription drug coverage may appeal any denial of
coverage of a prescription drug to obtain coverage for a
medically necessary covered outpatient drug that is not on
the formulary of the eligible entity (established under
subsection (c)) if the prescribing physician determines that
the therapeutically similar drug that is on the formulary is
not effective for the enrollee or has significant adverse
effects for the enrollee.
``(g) Confidentiality and Accuracy of Enrollee Records.--An
eligible entity shall meet the requirements of section
1852(h) with respect to enrollees under this part in the same
manner as such requirements apply to a Medicare+Choice
organization with respect to enrollees under part C.
``annual enrollment fee
``Sec. 1860E. (a) Amount.--
``(1) In general.--Except as provided in subsection (c),
enrollment under the program under this part is conditioned
upon payment of an annual enrollment fee of $25.
``(2) Annual percentage increase.--
``(A) In general.--In the case of any calendar year
beginning after 2003, the dollar amount in paragraph (1)
shall be increased by an amount equal to--
``(i) such dollar amount; multiplied by
``(ii) the inflation adjustment.
``(B) Inflation adjustment.--For purposes of subparagraph
(A)(ii), the inflation adjustment for any calendar year is
the percentage (if any) by which--
``(i) the average per capita aggregate expenditures for
covered outpatient drugs in the United States for medicare
beneficiaries, as determined by the Commissioner for the 12-
month period ending in July of the previous year; exceeds
``(ii) such aggregate expenditures for the 12-month period
ending with July 2003.
``(C) Rounding.--If any increase determined under clause
(ii) is not a multiple of $1, such increase shall be rounded
to the nearest multiple of $1.
``(b) Collection of Annual Enrollment Fee.--
``(1) In general.--Unless the eligible beneficiary makes an
election under paragraph (2), the annual enrollment fee
described in subsection (a) shall be collected and credited
to the Federal Supplementary Medical Insurance Trust Fund in
the same manner as the monthly premium determined under
section 1839 is collected and credited to such Trust Fund
under section 1840.
``(2) Direct payment.--An eligible beneficiary may elect to
pay the annual enrollment fee directly or in any other manner
approved by the Commissioner. The Commissioner shall
establish procedures for making such an election.
``(c) Waiver.--The Commissioner shall waive the enrollment
fee described in subsection (a) in the case of an eligible
beneficiary whose income is below 200 percent of the poverty
line.
``benefits under the program
``Sec. 1860F. (a) Access to Negotiated Prices.--
``(1) Negotiated prices.--
``(A) In general.--Subject to subparagraph (B), each
eligible entity with a contract under this part shall provide
each eligible beneficiary enrolled with the entity with
access to negotiated prices (including applicable discounts)
for such prescription drugs as the eligible entity determines
appropriate. If such a beneficiary becomes eligible for the
catastrophic benefit under subsection (b), the negotiated
prices (including applicable discounts) shall continue to be
available to the beneficiary for those prescription drugs for
which payment may not be made under section 1860H(b). For
purposes of this subparagraph, the term `prescription drugs'
is not limited to covered outpatient drugs, but does not
include any over-the-counter drug that is not a covered
outpatient drug.
``(B) Limitations.--
``(i) Formulary restrictions.--Insofar as an eligible
entity with a contract under this part uses a formulary, the
negotiated prices (including applicable discounts) for
prescription drugs shall only be available for drugs included
in such formulary.
``(ii) Avoidance of duplicate coverage.--The negotiated
prices (including applicable discounts) for prescription
drugs shall not be available for any drug prescribed for an
eligible beneficiary if payment for the drug is available
under part A or B (but such negotiated prices shall be
available if payment under part A or B is not available
because the beneficiary has not met the deductible or has
exhausted benefits under part A or B).
``(2) Discount card.--The Commissioner shall develop a
uniform standard card format to be issued by each eligible
entity that may be used by an enrolled beneficiary to ensure
the access of such beneficiary to negotiated prices under
paragraph (1).
``(3) Ensuring discounts in all areas.--The Commissioner
shall develop procedures that ensure that each eligible
beneficiary that resides in an area where no eligible entity
has been awarded a contract under this part is provided with
access to negotiated prices for prescription drugs (including
applicable discounts).
``(b) Catastrophic Benefit.--
``(1) In general.--Subject to paragraph (4) (relating to
eligibility for the catastrophic benefit) and any formulary
used by the eligible entity with which the eligible
beneficiary is enrolled, the catastrophic benefit shall be
administered as follows:
``(A) Beneficiaries with annual incomes below 200 percent
of the poverty line.--In the case of an eligible beneficiary
whose modified adjusted gross income (as defined in paragraph
(4)(E)) is below 200 percent of the poverty line, the
beneficiary shall not be responsible for making a payment for
a covered outpatient drug provided to the beneficiary in a
year to the extent that the out-of-pocket expenses of the
beneficiary for such drug, when added to the out-of-pocket
expenses of the beneficiary for covered outpatient drugs
previously provided in the year, exceed $1,200.
``(B) Beneficiaries with annual incomes between 200 and 400
percent of the poverty line.--In the case of an eligible
beneficiary whose modified adjusted gross income (as so
defined) exceeds 200 percent, but does not exceed 400
percent, of the poverty line, the beneficiary shall not be
responsible for making a payment for a covered outpatient
drug provided to the beneficiary in a year to the extent that
the out-of-pocket expenses of the beneficiary for such drug,
when added to the out-of-pocket expenses of the beneficiary
for covered outpatient drugs previously provided in the year,
exceed $2,500.
``(C) Beneficiaries with annual incomes above 400 percent
of the poverty line.--In the case of an eligible beneficiary
whose modified adjusted gross income (as so defined) exceeds
400 percent of the poverty line, the beneficiary shall not be
responsible for making a payment for a covered outpatient
drug provided to the beneficiary in a year to the extent that
the out-of-pocket expenses of the beneficiary for such drug,
when added to the out-of-pocket expenses of the beneficiary
[[Page S8219]]
for covered outpatient drugs previously provided in the year,
exceed $5,000.
``(2) Annual percentage increase.--
``(A) In general.--In the case of any calendar year after
2003, the dollar amounts in paragraph (1) shall be increased
by an amount equal to--
``(i) such dollar amount; multiplied by
``(ii) the inflation adjustment determined under section
1860E(a)(2)(B) for such calendar year.
``(B) Rounding.--If any increase determined under
subparagraph (A) is not a multiple of $1, such increase shall
be rounded to the nearest multiple of $1.
``(3) Eligible entity not at risk for catastrophic
benefit.--
``(A) In general.--The Commissioner, and not the eligible
entity, shall be at risk for the provision of the
catastrophic benefit under this subsection.
``(B) Provisions relating to payments to eligible
entities.--For provisions relating to payments to eligible
entities for administering the catastrophic benefit under
this subsection, see section 1860H.
``(4) Catastrophic benefit not available to certain high
income individuals.--
``(A) In general.--An eligible beneficiary enrolled under
this part whose modified adjusted gross income for a taxable
year exceeds 600 percent of the poverty line shall not be
eligible for the catastrophic benefit under this subsection.
``(B) Beneficiary still eligible for discount benefit.--
Nothing in subparagraph (A) shall be construed as affecting
the eligibility of a beneficiary described in such
subparagraph for the benefits under subsection (a).
``(C) Procedures for determining modified adjusted gross
income.--
``(i) In general.--The Commissioner shall establish
procedures for determining the modified adjusted gross income
of eligible beneficiaries enrolled under this part.
``(ii) Consultation.--The Commissioner shall consult with
the Secretary of the Treasury in making the determinations
described in clause (i).
``(iii) Disclosure of information.--Notwithstanding section
6103(a) of the Internal Revenue Code of 1986, the Secretary
of the Treasury may, upon written request from the
Commissioner, disclose to officers and employees of the
Medicare Prescription Drug Agency such return information as
is necessary to make the determinations described in clause
(i). Return information disclosed under the preceding
sentence may be used by officers and employees of the
Medicare Prescription Drug Agency only for the purposes of,
and to the extent necessary in, making such determinations.
``(D) Definition of modified adjusted gross income.--In
this paragraph, the term `modified adjusted gross income'
means adjusted gross income (as defined in section 62 of the
Internal Revenue Code of 1986)--
``(i) determined without regard to sections 135, 911, 931,
and 933 of such Code; and
``(ii) increased by the amount of interest received or
accrued by the taxpayer during the taxable year which is
exempt from tax under such Code.
``(5) Ensuring catastrophic benefit in all areas.--The
Commissioner shall develop procedures for the provision of
the catastrophic benefit under this subsection to each
eligible beneficiary that resides in an area where there are
no eligible entities that have been awarded a contract under
this part.
``selection of entities to provide prescription drug coverage
``Sec. 1860G. (a) Establishment of Bidding Process.--The
Commissioner shall establish a process under which the
Commissioner accepts bids from eligible entities and awards
contracts to the entities to provide the benefits under this
part to eligible beneficiaries in an area.
``(b) Submission of Bids.--Each eligible entity desiring to
enter into a contract under this part shall submit a bid to
the Commissioner at such time, in such manner, and
accompanied by such information as the Commissioner may
reasonably require.
``(c) Awarding of Contracts.--
``(1) In general.--The Commissioner shall, consistent with
the requirements of this part and the goal of containing
medicare program costs, award at least 2 contracts in each
area, unless only 1 bidding entity meets the terms and
conditions specified by the Commissioner under paragraph (2).
``(2) Terms and conditions.--The Commissioner shall not
award a contract to an eligible entity under this section
unless the Commissioner finds that the eligible entity is in
compliance with such terms and conditions as the Commissioner
shall specify.
``(3) Comparative merits.--In determining which of the
eligible entities that submitted bids that meet the terms and
conditions specified by the Commissioner under paragraph (2)
to award a contract, the Commissioner shall consider the
comparative merits of each of the bids.
``payments to eligible entities for administering the catastrophic
benefit
``Sec. 1860H. (a) In General.--The Commissioner shall
establish procedures for making payments to an eligible
entity under a contract entered into under this part for--
``(1) providing covered outpatient prescription drugs to
beneficiaries eligible for the catastrophic benefit in
accordance with subsection (b); and
``(2) costs incurred by the entity in administering the
catastrophic benefit in accordance with subsection (c).
``(b) Payment for Covered Outpatient Prescription Drugs.--
``(1) In general.--Except as provided in subsection (c) and
subject to paragraph (2), the Commissioner may only pay an
eligible entity for covered outpatient drugs furnished by the
eligible entity to an eligible beneficiary enrolled with such
entity under this part that is eligible for the catastrophic
benefit under section 1860F(b).
``(2) Limitations.--
``(A) Formulary restrictions.--Insofar as an eligible
entity with a contract under this part uses a formulary, the
Commissioner may not make any payment for a covered
outpatient drug that is not included in such formulary.
``(B) Negotiated prices.--The Commissioner may not pay an
amount for a covered outpatient drug furnished to an eligible
beneficiary that exceeds the negotiated price (including
applicable discounts) that the beneficiary would have been
responsible for under section 1860F(a).
``(c) Payment for Administrative Costs.--
``(1) Procedures.--The procedures established under
subsection (a)(1) shall provide for payment to the eligible
entity of an administrative fee for each prescription filled
by the entity for an eligible beneficiary--
``(A) who is enrolled with the entity; and
``(B) to whom subparagraph (A), (B), or (C) of section
1860F(b)(1) applies with respect to a covered outpatient
drug.
``(2) Amount.--The fee described in paragraph (1) shall
be--
``(A) negotiated by the Commissioner; and
``(B) consistent with such fees paid under private sector
pharmaceutical benefit contracts.
``(d) Secondary Payer Provisions.--The provisions of
section 1862(b) shall apply to the benefits provided under
this part.
``determination of income levels
``Sec. 1860I. (a) Procedures.--The Commissioner shall
establish procedures for determining the income levels of
eligible beneficiaries for purposes of sections 1860E(c) and
1860F(b).
``(b) Periodic Redeterminations.--Such income
determinations shall be valid for a period (of not less than
1 year) specified by the Commissioner.
``Appropriations
``Sec. 1860J. There are authorized to be appropriated from
time to time, out of any moneys in the Treasury not otherwise
appropriated, to the Federal Supplementary Medical Insurance
Trust Fund established under section 1841, an amount equal to
the amount by which the benefits and administrative costs of
providing the benefits under this part exceed the enrollment
fees collected under section 1860E.
``Subpart 2--Establishment of the Medicare Prescription Drug Agency
``medicare prescription drug agency
``Sec. 1860S. (a) Establishment.--There is established, as
an independent agency in the executive branch of the
Government, a Medicare Prescription Drug Agency (in this part
referred to as the `Agency').
``(b) Duty.--It shall be the duty of the Agency to
administer the Medicare Outpatient Prescription Drug Discount
and Security Program under subpart 1.
``commissioner; deputy commissioner; other officers
``Sec. 1860T. (a) Commissioner of Medicare Prescription
Drugs.--
``(1) Appointment.--There shall be in the Agency a
Commissioner of Medicare Prescription Drugs (in this subpart
referred to as the `Commissioner') who shall be appointed by
the President, by and with the advice and consent of the
Senate.
``(2) Compensation.--The Commissioner shall be compensated
at the rate provided for level I of the Executive Schedule.
``(3) Term.--
``(A) In general.--The Commissioner shall be appointed for
a term of 6 years.
``(B) Continuance in office.--In any case in which a
successor does not take office at the end of a Commissioner's
term of office, such Commissioner may continue in office
until the appointment of a successor.
``(C) Delayed appointments.--A Commissioner appointed to a
term of office after the commencement of such term may serve
under such appointment only for the remainder of such term.
``(D) Removal.--An individual serving in the office of
Commissioner may be removed from office only under a finding
by the President of neglect of duty or malfeasance in office.
``(4) Responsibilities.--The Commissioner shall be
responsible for the exercise of all powers and the discharge
of all duties of the Agency, and shall have authority and
control over all personnel and activities thereof.
``(5) Promulgation of rules and regulations.--
``(A) In general.--The Commissioner may prescribe such
rules and regulations as the Commissioner determines
necessary or appropriate to carry out the functions of the
Agency.
``(B) Rulemaking.--The regulations prescribed by the
Commissioner shall be subject to the rulemaking procedures
established under section 553 of title 5, United States Code.
``(6) Delegation of authority.--
[[Page S8220]]
``(A) In general.--The Commissioner may assign duties, and
delegate, or authorize successive redelegations of, authority
to act and to render decisions, to such officers and
employees of the Agency as the Commissioner may find
necessary.
``(B) Effect of delegation.--Within the limitations of such
delegations, redelegations, or assignments, all official acts
and decisions of such officers and employees shall have the
same force and effect as though performed or rendered by the
Commissioner.
``(7) Consultation with secretary of health and human
services.--The Commissioner and the Secretary shall consult,
on an ongoing basis, to ensure the coordination of the
programs administered by the Commissioner with the programs
administered by the Secretary under this title and under
title XIX.
``(b) Deputy Commissioner of Medicare Prescription Drugs.--
``(1) Appointment.--There shall be in the Agency a Deputy
Commissioner of Medicare Prescription Drugs (in this subpart
referred to as the `Deputy Commissioner') who shall be
appointed by the President, by and with the advice and
consent of the Senate.
``(2) Term.--
``(A) In general.--The Deputy Commissioner shall be
appointed for a term of 6 years.
``(B) Continuance in office.--In any case in which a
successor does not take office at the end of a Deputy
Commissioner's term of office, such Deputy Commissioner may
continue in office until the entry upon office of such a
successor.
``(C) Delayed appointment.--A Deputy Commissioner appointed
to a term of office after the commencement of such term may
serve under such appointment only for the remainder of such
term.
``(3) Compensation.--The Deputy Commissioner shall be
compensated at the rate provided for level II of the
Executive Schedule.
``(4) Duties.--
``(A) In general.--The Deputy Commissioner shall perform
such duties and exercise such powers as the Commissioner
shall from time to time assign or delegate.
``(B) Acting commissioner.--The Deputy Commissioner shall
be Acting Commissioner of the Agency during the absence or
disability of the Commissioner, unless the President
designates another officer of the Government as Acting
Commissioner, in the event of a vacancy in the office of the
Commissioner.
``(c) Chief Actuary.--
``(1) Appointment.--
``(A) In general.--There shall be in the Agency a Chief
Actuary, who shall be appointed by, and in direct line of
authority to, the Commissioner.
``(B) Qualifications.--The Chief Actuary shall be appointed
from individuals who have demonstrated, by their education
and experience, superior expertise in the actuarial sciences.
``(C) Duties.--The Chief Actuary shall serve as the chief
actuarial officer of the Agency, and shall exercise such
duties as are appropriate for the office of the Chief Actuary
and in accordance with professional standards of actuarial
independence.
``(2) Compensation.--The Chief Actuary shall be compensated
at the highest rate of basic pay for the Senior Executive
Service under section 5382(b) of title 5, United States Code.
``administrative duties of the commissioner
``Sec. 1860U. (a) Personnel.--
``(1) In general.--The Commissioner may employ, without
regard to chapter 31 of title 5, United States Code, such
officers and employees as are necessary to administer the
activities to be carried out through the Medicare
Prescription Drug Agency.
``(2) Flexibility with respect to civil service laws.--
``(A) In general.--The staff of the Medicare Prescription
Drug Agency shall be appointed without regard to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and, subject to
subparagraph (B), shall be paid without regard to the
provisions of chapters 51 and 53 of such title (relating to
classification and schedule pay rates).
``(B) Maximum rate.--In no case may the rate of
compensation determined under subparagraph (A) exceed the
rate of basic pay payable for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
``(b) Budgetary Matters.--
``(1) Submission of annual budget.--The Commissioner shall
prepare an annual budget for the Agency, which shall be
submitted by the President to Congress without revision,
together with the President's annual budget for the Agency.
``(2) Appropriations requests.--
``(A) Staffing and personnel.--Appropriations requests for
staffing and personnel of the Agency shall be based upon a
comprehensive workforce plan, which shall be established and
revised from time to time by the Commissioner.
``(B) Administrative expenses.--Appropriations for
administrative expenses of the Agency are authorized to be
provided on a biennial basis.
``(c) Seal of Office.--
``(1) In general.--The Commissioner shall cause a Seal of
Office to be made for the Agency of such design as the
Commissioner shall approve.
``(2) Judicial notice.--Judicial notice shall be taken of
the seal made under paragraph (1).
``(d) Data Exchanges.--
``(1) Disclosure of records and other information.--
Notwithstanding any other provision of law (including
subsections (b), (o), (p), (q), (r), and (u) of section 552a
of title 5, United States Code)--
``(A) the Secretary shall disclose to the Commissioner any
record or information requested in writing by the
Commissioner for the purpose of administering any program
administered by the Commissioner, if records or information
of such type were disclosed to the Administrator of the
Health Care Financing Administration in the Department of
Health and Human Services under applicable rules,
regulations, and procedures in effect before the date of
enactment of the Medicare Rx Drug Discount and Security Act
of 2001; and
``(B) the Commissioner shall disclose to the Secretary or
to any State any record or information requested in writing
by the Secretary to be so disclosed for the purpose of
administering any program administered by the Secretary, if
records or information of such type were so disclosed under
applicable rules, regulations, and procedures in effect
before the date of enactment of the Medicare Rx Drug Discount
and Security Act of 2001.
``(2) Exchange of other data.--The Commissioner and the
Secretary shall periodically review the need for exchanges of
information not referred to in paragraph (1) and shall enter
into such agreements as may be necessary and appropriate to
provide information to each other or to States in order to
meet the programmatic needs of the requesting agencies.
``(3) Routine use.--
``(A) In general.--Any disclosure from a system of records
(as defined in section 552a(a)(5) of title 5, United States
Code) pursuant to this subsection shall be made as a routine
use under subsection (b)(3) of section 552a of such title
(unless otherwise authorized under such section 552a).
``(B) Computerized comparison.--Any computerized comparison
of records, including matching programs, between the
Commissioner and the Secretary shall be conducted in
accordance with subsections (o), (p), (q), (r), and (u) of
section 552a of title 5, United States Code.
``(4) Timely action.--The Commissioner and the Secretary
shall each ensure that timely action is taken to establish
any necessary routine uses for disclosures required under
paragraph (1) or agreed to under paragraph (2).
``medicare competition and prescription drug advisory board
``Sec. 1860V. (a) Establishment of Board.--There is
established a Medicare Prescription Drug Advisory Board (in
this section referred to as the `Board').
``(b) Advice on Policies; Reports.--
``(1) Advice on policies.--On and after the date the
Commissioner takes office, the Board shall advise the
Commissioner on policies relating to the Medicare Outpatient
Prescription Drug Discount and Security Program under subpart
1.
``(2) Reports.--
``(A) In general.--With respect to matters of the
administration of subpart 1, the Board shall submit to
Congress and to the Commissioner of Medicare Prescription
Drugs such reports as the Board determines appropriate. Each
such report may contain such recommendations as the Board
determines appropriate for legislative or administrative
changes to improve the administration of such subpart. Each
such report shall be published in the Federal Register.
``(B) Maintaining independence of board.--The Board shall
directly submit to Congress reports required under
subparagraph (A). No officer or agency of the United States
may require the Board to submit to any officer or agency of
the United States for approval, comments, or review, prior to
the submission to Congress of such reports.
``(c) Structure and Membership of the Board.--
``(1) Membership.--The Board shall be composed of 7 members
who shall be appointed as follows:
``(A) Presidential appointments.--
``(i) In general.--Three members shall be appointed by the
President, by and with the advice and consent of the Senate.
``(ii) Limitation.--Not more than 2 such members may be
from the same political party.
``(B) Senatorial appointments.--Two members (each member
from a different political party) shall be appointed by the
President pro tempore of the Senate with the advice of the
Chairman and the Ranking Minority Member of the Committee on
Finance of the Senate.
``(C) Congressional appointments.--Two members (each member
from a different political party) shall be appointed by the
Speaker of the House of Representatives, with the advice of
the Chairman and the Ranking Minority Member of the Committee
on Ways and Means of the House of Representatives.
``(2) Qualifications.--The members shall be chosen on the
basis of their integrity, impartiality, and good judgment,
and shall be individuals who are, by reason of their
education, experience, and attainments, exceptionally
qualified to perform the duties of members of the Board.
``(d) Terms of Appointment.--
[[Page S8221]]
``(1) In general.--Subject to paragraph (2), each member of
the Board shall serve for a term of 6 years.
``(2) Continuance in office and staggered terms.--
``(A) Continuance in office.--A member appointed to a term
of office after the commencement of such term may serve under
such appointment only for the remainder of such term.
``(B) Staggered terms.--The terms of service of the members
initially appointed under this section shall begin on January
1, 2002, and expire as follows:
``(i) Presidential appointments.--The terms of service of
the members initially appointed by the President shall expire
as designated by the President at the time of nomination, 1
each at the end of--
``(I) 2 years;
``(II) 4 years; and
``(III) 6 years.
``(ii) Senatorial appointments.--The terms of service of
members initially appointed by the President pro tempore of
the Senate shall expire as designated by the President pro
tempore of the Senate at the time of nomination, 1 each at
the end of--
``(I) 3 years; and
``(II) 6 years.
``(iii) Congressional appointments.--The terms of service
of members initially appointed by the Speaker of the House of
Representatives shall expire as designated by the Speaker of
the House of Representatives at the time of nomination, 1
each at the end of--
``(I) 4 years; and
``(II) 5 years.
``(C) Reappointments.--Any person appointed as a member of
the Board may not serve for more than 8 years.
``(D) Vacancies.--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.
``(e) Chairperson.--A member of the Board shall be
designated by the President to serve as Chairperson for a
term of 4 years, coincident with the term of the President,
or until the designation of a successor.
``(f) Expenses and Per Diem.--Members of the Board shall
serve without compensation, except that, while serving on
business of the Board away from their homes or regular places
of business, members may be allowed travel expenses,
including per diem in lieu of subsistence, as authorized by
section 5703 of title 5, United States Code, for persons in
the Government employed intermittently.
``(g) Meeting.--
``(1) In general.--The Board shall meet at the call of the
Chairperson (in consultation with the other members of the
Board) not less than 4 times each year to consider a specific
agenda of issues, as determined by the Chairperson in
consultation with the other members of the Board.
``(2) Quorum.--Four members of the Board (not more than 3
of whom may be of the same political party) shall constitute
a quorum for purposes of conducting business.
``(h) Federal Advisory Committee Act.--The Board shall be
exempt from the provisions of the Federal Advisory Committee
Act (5 U.S.C. App.).
``(i) Personnel.--
``(1) Staff director.--The Board shall, without regard to
the provisions of title 5, United States Code, relating to
the competitive service, appoint a Staff Director who shall
be paid at a rate equivalent to a rate established for the
Senior Executive Service under section 5382 of title 5,
United States Code.
``(2) Staff.--
``(A) In general.--The Board may employ, without regard to
chapter 31 of title 5, United States Code, such officers and
employees as are necessary to administer the activities to be
carried out by the Board.
``(B) Flexibility with respect to civil service laws.--
``(i) In general.--The staff of the Board shall be
appointed without regard to the provisions of title 5, United
States Code, governing appointments in the competitive
service, and, subject to clause (ii), shall be paid without
regard to the provisions of chapters 51 and 53 of such title
(relating to classification and schedule pay rates).
``(ii) Maximum rate.--In no case may the rate of
compensation determined under clause (i) exceed the rate of
basic pay payable for level IV of the Executive Schedule
under section 5315 of title 5, United States Code.
``(j) Authorization of Appropriations.--There are
authorized to be appropriated, out of the Federal
Supplemental Medical Insurance Trust Fund established under
section 1841, and the general fund of the Treasury, such sums
as are necessary to carry out the purposes of this
section.''.
(b) Conforming References to Previous Part D.--
(1) In general.--Any reference in law (in effect before the
date of enactment of this Act) to part D of title XVIII of
the Social Security Act is deemed a reference to part E of
such title (as in effect after such date).
(2) Secretarial submission of legislative proposal.--Not
later than 6 months after the date of enactment of this
section, the Secretary of Health and Human Services shall
submit to the appropriate committees of Congress a
legislative proposal providing for such technical and
conforming amendments in the law as are required by the
provisions of this section.
(c) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect on the date of enactment of this Act.
(2) Timing of initial appointments.--The Commissioner and
Deputy Commissioner of Medicare Prescription Drugs may not be
appointed before March 1, 2002.
SEC. 3. COMMISSIONER AS MEMBER OF THE BOARD OF TRUSTEES OF
THE MEDICARE TRUST FUNDS.
(a) In General.--Section 1841(b) of the Social Security Act
(42 U.S.C. 1395t(b)) is amended by striking ``and the
Secretary of Health and Human Services, all ex officio,'' and
inserting ``, the Secretary of Health and Human Services, and
the Commissioner of Medicare Prescription Drugs, all ex
officio,''.
(b) Effective Date.--The amendment made by this subsection
shall take effect on March 1, 2002.
SEC. 4. EXCLUSION OF PART D COSTS FROM DETERMINATION OF PART
B MONTHLY PREMIUM.
Section 1839(g) of the Social Security Act (42 U.S.C.
1395r(g)) is amended--
(1) by striking ``attributable to the application of
section'' and inserting ``attributable to--
``(1) the application of section'';
(2) by striking the period and inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(2) the Voluntary Medicare Outpatient Prescription Drug
Discount and Security Program under part D.''.
SEC. 5. MEDIGAP REVISIONS.
Section 1882 of the Social Security Act (42 U.S.C. 1395ss)
is amended by adding at the end the following new subsection:
``(v) Modernization of Medicare Supplemental Policies.--
``(1) Promulgation of model regulation.--
``(A) NAIC model regulation.--If, within 9 months after the
date of enactment of the Medicare Rx Drug Discount and
Security Act of 2001, the National Association of Insurance
Commissioners (in this subsection referred to as the `NAIC')
changes the 1991 NAIC Model Regulation (described in
subsection (p)) to revise the benefit package classified as
`J' under the standards established by subsection (p)(2)
(including the benefit package classified as `J' with a high
deductible feature, as described in subsection (p)(11)) so
that--
``(i) the coverage for outpatient prescription drugs
available under such benefit package is replaced with
coverage for outpatient prescription drugs that complements
but does not duplicate the benefits for outpatient
prescription drugs that beneficiaries are otherwise entitled
to under this title;
``(ii) a uniform format is used in the policy with respect
to such revised benefits; and
``(iii) such revised standards meet any additional
requirements imposed by the Medicare Rx Drug Discount and
Security Act of 2001;
subsection (g)(2)(A) shall be applied in each State,
effective for policies issued to policy holders on and after
January 1, 2003, as if the reference to the Model Regulation
adopted on June 6, 1979, were a reference to the 1991 NAIC
Model Regulation as changed under this subparagraph (such
changed regulation referred to in this section as the `2003
NAIC Model Regulation').
``(B) Regulation by the secretary.--If the NAIC does not
make the changes in the 1991 NAIC Model Regulation within the
9-month period specified in subparagraph (A), the Secretary
shall promulgate, not later than 9 months after the end of
such period, a regulation and subsection (g)(2)(A) shall be
applied in each State, effective for policies issued to
policy holders on and after January 1, 2003, as if the
reference to the Model Regulation adopted on June 6, 1979,
were a reference to the 1991 NAIC Model Regulation as changed
by the Secretary under this subparagraph (such changed
regulation referred to in this section as the `2003 Federal
Regulation').
``(C) Consultation with working group.--In promulgating
standards under this paragraph, the NAIC or Secretary shall
consult with a working group similar to the working group
described in subsection (p)(1)(D).
``(D) Modification of standards if medicare benefits
change.--If benefits under part D of this title are changed
and the Secretary determines, in consultation with the NAIC,
that changes in the 2003 NAIC Model Regulation or 2003
Federal Regulation are needed to reflect such changes, the
preceding provisions of this paragraph shall apply to the
modification of standards previously established in the same
manner as they applied to the original establishment of such
standards.
``(2) Construction of benefits in other medicare
supplemental policies.--Nothing in the benefit packages
classified as `A' through `I' under the standards established
by subsection (p)(2) (including the benefit package
classified as `F' with a high deductible feature, as
described in subsection (p)(11)) shall be construed as
providing coverage for benefits for which payment may be made
under part D.
``(3) Application of provisions and conforming
references.--
``(A) Application of provisions.--The provisions of
paragraphs (4) through (10) of subsection (p) shall apply
under this section, except that--
[[Page S8222]]
``(i) any reference to the model regulation applicable
under that subsection shall be deemed to be a reference to
the applicable 2003 NAIC Model Regulation or 2003 Federal
Regulation; and
``(ii) any reference to a date under such paragraphs of
subsection (p) shall be deemed to be a reference to the
appropriate date under this subsection.
``(B) Other references.--Any reference to a provision of
subsection (p) or a date applicable under such subsection
shall also be considered to be a reference to the appropriate
provision or date under this subsection.''.
______
By Mr. BENNETT:
S. 1240. A bill to provide for the acquisition of land and
construction of an interagency administrative and visitor facility at
the entrance to American Fork Canyon, Utah, and for other purposes; to
the Committee on Energy and Natural Resources.
Mr. BENNETT. Mr. President, I rise today to introduce the Timpanogos
Interagency Land Exchange Act of 2001.
Before I explain the details of my legislation I would like to share
with my colleagues a bit of the area's history. So everyone understands
the lay of the land, Timpanogos Cave is in American Fork Canyon, which
is a 45-50 minute drive south of Salt Lake City. Now that my colleagues
have a general idea of the location let me share some information on
the designation of the cave. After being solicited by a group of Utahns
familiar with Timpanogos Cave, President Warren G. Harding, invoking
the Antiquities Act, designated the Timpanogos Cave National Monument
on October 14, 1922. It just so happens that today is the 77th
anniversary of the dedication of the Timpanogos Cave National Monument.
The dedication took place on July 25, 1924. The Secretary of the
Interior at that time, Hubert Work, invited a group of journalists from
New York City on a five week tour of the recently created national
parks and monuments in the west. Ostensibly, the tour had been
organized to publicize the features of the new parks of the quickly
growing National Park Service. After spending over a month visiting
National Parks, the group arrived at Timpanogos Cave National Monument
of the 25th of July where Mr. Alvah Davison, a noted New York
publisher, gave the dedication speech.
I believe it is fitting on the 77th anniversary of the dedication of
the Timpanogos Cave National Monument to introduce legislation that
will enhance the unique visitor experience at this site. The Timpanogos
Interagency Land Exchange Act of 2001 authorizes the exchange of 266
acres of United States Forest Service land for 37 acres of private
land. This newly acquired land will serve as the site for a new visitor
center and administrative offices of the Pleasant Grove Ranger district
of the Uinta National Forest and the Timpanogos Cave National Monument.
My legislation also authorizes the construction of the new interagency
facility. This new facility, which will be located near the mouth of
American Fork Canyon in the town of Highland, UT, will not only benefit
the visiting public, but will also result in better coordination
between the NPS and USFS.
The land exchange requires the Secretary of Agriculture's approval
and must conform with the ``Uniform Appraisal Standards for Federal
Land Acquisitions.'' Furthermore, the exchange is being conducted with
a private landowner who is willing to trade his property for various
USFS parcels on the Uinta National Forest.
The necessity for this legislation is ten years overdue. The original
visitor center at Timpanogos Cave was built as part of the NPS's
Mission '66 program. Unfortunately it burned down in 1991. In 1992, as
an emergency measure, the NPS began use of a 20 foot by 60 foot double-
wide trailer to serve temporarily as a make-shift visitor center. The
trailer still serves today as the visitor center. The trailer is not
suitable for the monument's annual visitation of 125,000 people. On
high visitation days the center is easily overrun by the public.
Additionally, the center suffers from rock-fall that has caused
significant damage to the roof of the trailer and raises obvious safety
issues.
The NPS will not be the only beneficiary of this new site. As I
stated before,the Pleasant Grove Ranger District of the Uinta National
Forest will also be getting a new home. Currently, the Pleasant Grove
Ranger District is housed in a 1950's era building that was not
designed for today's staffing requirements or modern day computer and
communications needs. It is simply too small and too outdated. The new
facility will meet the space needs of the ranger district and be more
technology friendly. Furthermore, the public now will be able to visit
one conveniently located office to inquire about NPS and USFS
activities.
I view the Timpanogos Interagency Land Exchange Act of 2001 as simple
legislation that will correct a decade old problem. I look forward to
working with the Committee on Energy and Natural Resources to move this
legislation quickly.
______
By Mr. SPECTER:
S. 1241. A bill to amend the Fair Labor Standards Act of 1938 to
permit certain youth to perform certain work with wood products; to the
Committee on Health, Education, Labor, and Pensions.
Mr. SPECTER. Mr. President, I have sought recognition today to
introduce legislation designed to permit certain youths, those exempt
from attending school, between the ages of 14 and 18 to work in
sawmills under special safety conditions and close adult supervision. I
introduced identical measures in the 105th and 106th Congresses.
Similar legislation introduced by my distinguished colleague,
Representative Joseph R. Pitts, has already passed in the House twice
before. I am hopeful the Senate will also enact this important issue.
As the former Chairman of the Labor, Health and Human Services and
Education Appropriations Subcommittee, I have strongly supported
increased funding for the enforcement of the important child safety
protections contained in the Fair Labor Standards Act. I also believe,
however, that accommodation must be made for youths who are exempt from
compulsory school-attendance laws after the eighth grade. It is
extremely important that youths who are exempt from attending school be
provided with access to jobs and apprenticeships in areas that offer
employment where they live.
The need for access to popular trades is demonstrated by the Amish
community. In 1998, I toured an Amish sawmill in Lancaster County, PA,
and had the opportunity to meet with some of my Amish constituency. In
December 2000, Representative Pitts and I held a meeting in Gap, PA,
with over 20 members of the Amish community to hear their concerns on
this issue. On May 3, 2001, I chaired a hearing of the Labor, Health
and Human Services and Education Appropriations Subcommittee to examine
these issues.
At the hearing the Amish explained that while they once made their
living almost entirely by farming, they have increasingly had to expand
into other occupations as farmland has disappeared in many areas due to
pressure from development. As a result, many of the Amish have come to
rely more and more on work in sawmills to make their living. The Amish
culture expects youth, upon the completion of their education at the
age of 14, to begin to learn a trade that will enable them to become
productive members of society. In many areas, work in sawmills is one
of the major occupations available for the Amish, whose belief system
limits the types of jobs they may hold. Unfortunately, these youths are
currently prohibited by law from employment in this industry until they
reach the age of 18. This prohibition threatens both the religion and
lifestyle of the Amish.
Under my legislation, youths would not be allowed to operate power
machinery, but would be restricted to performing activities such as
sweeping, stacking wood, and writing orders. My legislation requires
that the youths must be protected from wood particles or flying debris
and wear protective equipment, all while under strict adult
supervision. The Department of Labor must monitor these safeguards to
insure that they are enforced.
The Department of Justice has raised serious concerns under the
Establishment Clause with the House legislation. The House measure
conferred benefits only to a youth who is a ``member of a religious
sect or division thereof whose established teachings do not permit
formal education beyond the eighth grade.'' By conferring the
``benefit'' of working in a sawmill only to the adherents of certain
religions, the
[[Page S8223]]
Department argues that the bill appears to impermissibly favor religion
to ``irreligion.'' In drafting my legislation, I attempted to overcome
such an objection by conferring permission to work in sawmills to all
youths who ``are exempted from compulsory education laws after the
eighth grade.'' Indeed, I think a broader focus is necessary to create
a sufficient range of vocational opportunities for all youth who are
legally out of school and in need of vocational opportunities.
I also believe that the logic of the Supreme Court's 1972 decision in
Wisconsin v. Yoder supports my bill. In Yoder, the Court held that
Wisconsin's compulsory school attendance law requiring children to
attend school until the age of 16 violated the Free Exercise Clause.
The Court found that the Wisconsin law imposed a substantial burden on
the free exercise of religion by the Amish since attending school
beyond the eighth grade ``contravenes the basic religious tenets and
practices of the Amish faith.'' I believe a similar argument can be
made with respect to Amish youth working in sawmills. As their
population grows and their subsistence through an agricultural way of
life decreases, trades such as sawmills become more and more crucial to
the continuation of their lifestyle. Barring youths from the sawmills
denies these youths the very vocational training and path to self-
reliance that was central to the Yoder Court's holding that the Amish
do not need the final two years of public education.
I offer my legislation with the hope that my colleagues will work
with me to provide relief for the Amish community. I am pleased to have
received a commitment on the Senate floor from Senator Kennedy,
Chairman of the Committee on Health, Education, Labor, and Pensions, to
hold a hearing on this issue, and I urge the timely consideration of my
bill by the full Senate.
______
By Mr. GRAHAM (for himself, Mr. Murkowski, Mr. Reid, Mr. Nelson
of Florida, Mr. Inhofe, Mr. Warner, and Mr. Burns):
S. 1243. A bill to amend the Internal Revenue Code of 1986 to treat
spaceports like airports under the exempt facility bond rules; to the
Committee on Finance.
Mr. GRAHAM. Mr. President, today I am introducing with my colleagues,
Senators Murkowski, Reid of Nevada, Nelson of Florida, Inhofe, Warner
and Burns legislation entitled the Spaceport Equality Act.
Currently airports, high speed rail, seaports, mass transit, and
other transportation projects can raise money through the issuance of
tax-exempt bonds. The Spaceport Equality Act amends the Internal
Revenue Code to clarify that spaceports enjoy the same favorable tax
treatment.
The U.S. aerospace industry manufactures nearly 70 percent of the
world's satellites, but only 40 percent of the satellites that enter
the atmosphere are launched by this country. Our Nation's spaceports
are a vital component of the infrastructure needed to expand and
enhance the U.S. role in the international space arena. The Spaceport
Equality Act is an important step in increasing our competitive
position in this emerging industry.
This bill will stimulate investment in expanding and modernizing our
Nation's space launch facilities by lowering the cost of financing
spaceport construction and renovation. Upon enactment, the bill will
increase U.S. launch capacity, and enhance both our economic and
national security.
The commercial space market is expected to become increasingly more
competitive in the next decade. The ability to have a robust space
launch capability is in our best interests economically as well as
strategically.
My proposal does not provide direct Federal spending to our
commercial space transportation industry. Instead, it creates the
conditions necessary to stimulate private sector capital investment in
infrastructure. This bill offers Congress the chance to help open a new
age to space, where the States and local communities can themselves
take part in space transportation.
To be state of the art in space requires state of the art financing
on the ground. I urge my colleagues in the Senate to join us in this
important effort by co-sponsoring this bill.
I ask unanimous consent that the text of the bill and a short summary
of the bill be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1243
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 ``Spaceport Equality Act''.
SEC. 2. SPACEPORTS TREATED LIKE AIRPORTS UNDER EXEMPT
FACILITY BOND RULES.
(a) In General.--Paragraph (1) of section 142(a) of the
Internal Revenue Code of 1986 (relating to exempt facility
bonds) is amended to read as follows:
``(1) airports and spaceports,''.
(b) Treatment of Ground Leases.--Paragraph (1) of section
142(b) of the Internal Revenue Code of 1986 (relating to
certain facilities must be governmentally owned) is amended
by adding at the end the following new subparagraph:
``(C) Special rule for spaceport ground leases.--For
purposes of subparagraph (A), spaceport property which is
located on land owned by the United States and which is used
by a governmental unit pursuant to a lease (as defined in
section 168(h)(7)) from the United States shall be treated as
owned by such unit if--
``(i) the lease term (within the meaning of section
168(i)(3)) is at least 15 years, and
``(ii) such unit would be treated as owning such property
if such lease term were equal to the useful life of such
property.''.
(c) Definition of Spaceport.--Section 142 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new subsection:
``(l) Spaceport.--
``(1) In general.--For purposes of subsection (a)(1), the
term `spaceport' means--
``(A) any facility directly related and essential to
servicing spacecraft, enabling spacecraft to launch or
reenter, or transferring passengers or space cargo to or from
spacecraft, but only if such facility is located at, or in
close proximity to, the launch site or reentry site, and
``(B) any other functionally related and subordinate
facility at or adjacent to the launch site or reentry site at
which launch services or reentry services are provided,
including a launch control center, repair shop, maintenance
or overhaul facility, and rocket assembly facility.
``(2) Additional terms.--For purposes of paragraph (1)--
``(A) Space cargo.--The term `space cargo' includes
satellites, scientific experiments, other property
transported into space, and any other type of payload,
whether or not such property returns from space.
``(B) Spacecraft.--The term `spacecraft' means a launch
vehicle or a reentry vehicle.
``(C) Other terms.--The terms `launch', `launch site',
`launch services', `launch vehicle', `payload', `reenter',
`reentry services', `reentry site', and `reentry vehicle'
shall have the respective meanings given to such terms by
section 70102 of title 49, United States Code (as in effect
on the date of enactment of this subsection).''.
(d) Exception From Federally Guaranteed Bond Prohibition.--
Paragraph (3) of section 149(b) of the Internal Revenue Code
of 1986 (relating to exceptions) is amended by adding at the
end the following new subparagraph:
``(E) Exception for spaceports.--Paragraph (1) shall not
apply to any exempt facility bond issued as part of an issue
described in paragraph (1) of section 142(a) to provide a
spaceport in situations where--
``(i) the guarantee of the United States (or an agency or
instrumentality thereof) is the result of payment of rent,
user fees, or other charges by the United States (or any
agency or instrumentality thereof), and
``(ii) the payment of the rent, user fees, or other charges
is for, and conditioned upon, the use of the spaceport by the
United States (or any agency or instrumentality thereof).''.
(e) Conforming Amendment.--The heading for section 142(c)
of the Internal Revenue Code of 1986 is amended by inserting
``, Spaceports,'' after ``Airports''.
(f) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
____
The Spaceport Equality Act
Description of Present Law
Present law allows exempt facility bonds to be issued to
finance certain transportation facilities, such as airports,
docks and wharves, mass commuting facilities, high speed
intercity rail facilities, and storage or training facilities
directly related to the foregoing. Except for high-speed
intercity rail facilities, these facilities must be owned by
a governmental unit to be eligible for such financing. Exempt
facility bonds for airports, docks and wharves, and
governmentally-owned, high-speed intercity rail facilities
are not subject to the private activity bond volume cap. Only
25% of the exempt facility bonds for a privately-owned, high-
speed intercity rail facility require private activity bond
volume cap.
Airports.--Treasury Department regulations provide that
airport property eligible for exempt facility bond financing
includes facilities that are directly related and essential
to the servicing of aircraft, enabling aircraft to take off
and land, and transferring
[[Page S8224]]
passengers or cargo to or from aircraft, but only if the
facilities are located at, or in close proximity to, the
take-off and landing area. The regulations also provide that
airports include other functionally related and subordinate
facilities at or adjacent to the airport, such as terminals,
hangers, loading facilities, repair shops, maintenance or
overhaul facilities, and land-based navigational aids such as
radar installations. Facilities, the primary function of
which is manufacturing rather than transportation, are not
eligible for exempt facility bond financing.
Public Use Requirement.--Treasury Department regulations
provide generally that, in order to qualify as an exempt
facility, the facility must serve or be available on a
regular basis for general public use, or be part of a
facility so used, as contrasted with similar types of
facilities that are constructed for the exclusive use of a
limited number of nongovernmental persons in their trades or
businesses. For example, a private dock or wharf leased to
and serving only a single manufacturing plant would not
qualify as a facility for general public use, but a hangar or
repair facility at a municipal airport, or a dock or a wharf,
would qualify even if it is leased or permanently assigned to
a single nongovernmental person provided that person directly
serves the general public, such as a common passenger carrier
or freight carrier. Certain facilities, such as sewage and
solid waste disposal facilities, are treated in all events as
serving a general public use although they may be part of a
nonpublic facility, such as a manufacturing facility used in
the trade of business of a single manufacturer.
Federally Guaranteed Bonds.--Bonds directly or indirectly
guaranteed by the United States (or any agency or instrument
thereof) are not tax-exempt. The Treasury Department has not
issued detailed regulations interpreting the prohibition of
federal guarantees and the scope of the prohibition is
unclear.
Explanation of Spaceport Equality Act
The Spaceport Equality Act clarifies that spaceports are
eligible for exempt facility bond financing to the same
extent as airports. As in the case of airports, the
facilities must be owned by a governmental unit to be
eligible for such financing.
The term ``spaceport'' includes facilities directly related
and essential to servicing spacecraft, enabling spacecraft to
take off or land, and transferring passengers or space cargo
door from spacecraft, but only if the facilities are located
at, or in close proximity to, the launch site. Space cargo
includes satellites, scientific experiments, and other
property transported into space, whether or not the cargo
will return from space. The term ``spaceport'' also includes
other functionally related and subordinate facilities at or
adjacent to the spaceport, such as launch control centers,
repair shops, maintenance or overhaul facilities, and rocket
assembly facilities that must be located at or adjacent to
the launch site. The term ``spaceport'' further includes
storage facilities directly related to any governmentally-
owned spaceport (including a spaceport owned by the U.S.
Government.
It is intended that spaceports shall be treated in all
respects as serving the general public and will therefore
satisfy the public use requirements contained in present
Treasury Department regulations. It is also intended that the
use of spaceport facilities by the federal government will
not prevent the spaceport facilities from being treated as
serving the general public, will not prevent the spaceport
from being treated as owned by a government unit, and will
not otherwise render such facilities ineligible for exempt
facility bond financing. In addition, the amendment specifies
that payment by the federal government of rent, user fees, or
other charges for the use of spaceport property will not be
taken into account in determining whether bonds for
spacesports are federally guaranteed as long as such payments
are conditioned on the use of such property and not payable
unconditionally and in all events.
______
By Mr. KENNEDY (for himself, Ms. Snowe, Mr. Rockefeller, Mr.
Chafee, Ms. Collins, Mr. Daschle, Mr. Baucus, Mr. Breaux, Mr.
Torricelli, Mrs. Lincoln, Mr. Graham, Mr. Bingaman, Mr. Kerry,
Mrs. Clinton, and Mr. Corzine).
S. 1244. A bill to amend titles XIX and XXI of the Social Security
Act to provide for FamilyCare coverage for parents of enrolled
children, and for other purposes; to the Committee on Finance.
Mr. KENNEDY. Mr. President, it's a privilege to join Senator Snowe
and Senator Rockefeller and many others in introducing the Family Care
Act of 2001 to expand health coverage to millions of families.
Families across America get up every day, go to work, play by the
rules, and still cannot afford the health insurance they need to stay
healthy and protect themselves when serious illness strikes. Family
Care is a practical, common-sense solution for millions of hardworking
families, and it deserves to be a national priority.
The legislation we are introducing today will provide health
insurance to millions of Americans. And it does so without creating a
new program or a new bureaucracy. It builds on the existing Children's
Health Insurance Program. By allowing children and their parents to be
covered, we can reduce the number of uninsured Americans by one-third.
Four years ago we worked together, Republicans and Democrats, to
expand coverage to uninsured children in families whose income is too
high for Medicaid but not enough to afford private health insurance.
The Children's Health Insurance Program has already brought quality
health care to over 3 million children, and many more are eligible.
Our bill is an important step to build on that initiative. Over 80
percent of children who are uninsured or enrolled in Medicaid or CHIP
have uninsured parents. Expanding CHIP to cover parents as well as
children will make a huge difference to millions of working families.
We also need to do more to help sign up the large number of children
who are already eligible for health coverage but have never enrolled.
The numbers are dramatic. Ninety-five percent of low-income uninsured
children are eligible for Medicaid or CHIP. If we can sign up these
children, we can give almost every child in America a real chance at a
healthy childhood.
Our legislation includes steps to make it easier for families to
register and stay covered. Patients will enroll, and will enroll their
children, too.
We also know that many families lose coverage because complicated
applications and burdensome requirements make it hard to stay insured.
Our bill sees that families will have a simple application and that
they won't have to enroll over and over again. It also makes sure that
families they aren't excluded because that have simple assets like
cars.
I am pleased that this legislation has so much support in the Finance
Committee. In addition to Senator Snowe, we have the support of every
single Democrat in that committee. I hope that we can move on this
legislation before the August recess.
These are long-overdue steps to give millions more Americans the
health coverage they deserve. It's a significant step toward the day
when every man, woman and child in America has affordable health
coverage. The Nation needs both, and I'm hopeful that Congress will
enact both as soon as possible.
I ask unanimous consent that the text of the bill and letters of
support be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1244
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE OF TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``FamilyCare
Act of 2001''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title of title; table of contents.
Sec. 2. Renaming of title XXI program.
Sec. 3. FamilyCare coverage of parents under the medicaid program and
title XXI.
Sec. 4. Automatic enrollment of children born to title XXI parents.
Sec. 5. Optional coverage of legal immigrants under the medicaid
program and title XXI.
Sec. 6. Optional coverage of children through age 20 under the medicaid
program and title XXI.
Sec. 7. Application of simplified title XXI procedures under the
medicaid program.
Sec. 8. Improving welfare-to-work transition under the medicaid
program.
Sec. 9. Elimination of 100 hour rule and other AFDC-related eligibility
restrictions.
Sec. 10. State grant program for market innovation.
Sec. 11. Limitations on conflicts of interest.
Sec. 12. Increase in CHIP allotment for each of fiscal years 2002
through 2004.
Sec. 13. Demonstration programs to improve medicaid and CHIP outreach
to homeless individuals and families.
Sec. 14. Technical and conforming amendments to authority to pay
medicaid expansion costs from title XXI appropriation.
Sec. 15. Additional CHIP revisions.
SEC. 2. RENAMING OF TITLE XXI PROGRAM.
(a) In General.--The heading of title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.) is amended to read as
follows:
[[Page S8225]]
``TITLE XXI--FAMILYCARE PROGRAM''.
(b) Program References.--Any reference in any provision of
Federal law or regulation to ``SCHIP'' or ``State children's
health insurance program'' under title XXI of the Social
Security Act shall be deemed a reference to the FamilyCare
program under such title.
SEC. 3. FAMILYCARE COVERAGE OF PARENTS UNDER THE MEDICAID
PROGRAM AND TITLE XXI.
(a) Incentives To Implement FamilyCare Coverage.--
(1) Under medicaid.--
(A) Establishment of new optional eligibility category.--
Section 1902(a)(10)(A)(ii) of the Social Security Act (42
U.S.C. 1396a(a)(10)(A)(ii)) is amended--
(i) by striking ``or'' at the end of subclause (XVII);
(ii) by adding ``or'' at the end of subclause (XVIII); and
(iii) by adding at the end the following:
``(XIX) who are individuals described in subsection (k)(1)
(relating to parents of categorically eligible children);''.
(B) Parents described.--Section 1902 of the Social Security
Act is further amended by inserting after subsection (j) the
following:
``(k)(1)(A) Individuals described in this paragraph are
individuals--
``(i) who are the parents of an individual who is under 19
years of age (or such higher age as the State may have
elected under section 1902(l)(1)(D)) and who is eligible for
medical assistance under subsection (a)(10)(A);
``(ii) who are not otherwise eligible for medical
assistance under such subsection, under section 1931, or
under a waiver approved under section 1115 or otherwise
(except under subsection (a)(10)(A)(ii)(XIX)); and
``(iii) whose family income exceeds the income level
applicable under the State plan under part A of title IV as
in effect as of July 16, 1996, but does not exceed the
highest income level applicable to a child in the family
under this title.
``(B) In establishing an income eligibility level for
individuals described in this paragraph, a State may vary
such level consistent with the various income levels
established under subsection (l)(2) based on the ages of
children described in subsection (l)(1) in order to ensure,
to the maximum extent possible, that such individuals shall
be enrolled in the same program as their children.
``(C) An individual may not be treated as being described
in this paragraph unless, at the time of the individual's
enrollment under this title, the child referred to in
subparagraph (A)(i) of the individual is also enrolled under
this title.
``(D) In this subsection, the term `parent' includes an
individual treated as a caregiver for purposes of carrying
out section 1931.
``(2) In the case of a parent described in paragraph (1)
who is also the parent of a child who is eligible for child
health assistance under title XXI, the State may elect (on a
uniform basis) to cover all such parents under section 2111
or under this title.''.
(C) Enhanced matching funds available if certain conditions
met.--Section 1905 of the Social Security Act (42 U.S.C.
1396d) is amended--
(i) in the fourth sentence of subsection (b), by striking
``or subsection (u)(3)'' and inserting ``, (u)(3), or
(u)(4)''; and
(ii) in subsection (u)--
(I) by redesignating paragraph (4) as paragraph (6), and
(II) by inserting after paragraph (3) the following:
``(4) For purposes of subsection (b) and section
2105(a)(1):
``(A) FamilyCare parents.--The expenditures described in
this subparagraph are the expenditures described in the
following clauses (i) and (ii):
``(i) Parents.--If the conditions described in clause (iii)
are met, expenditures for medical assistance for parents
described in section 1902(k)(1) and for parents who would be
described in such section but for the fact that they are
eligible for medical assistance under section 1931 or under a
waiver approved under section 1115.
``(ii) Certain pregnant women.--Expenditures for medical
assistance for pregnant women under section 1902(l)(1)(A) in
a family the income of which exceeds the income level
applicable under section 1902(l)(2)(A) to a family of the
size involved as of January 1, 2000.
``(iii) Conditions.--The conditions described in this
clause are the following:
``(I) The State has a State child health plan under title
XXI which (whether implemented under such title or under this
title) has an effective income level for children that is at
least 200 percent of the poverty line.
``(II) Such State child health plan does not limit the
acceptance of applications, does not use a waiting list for
children who meet eligibility standards to qualify for
assistance, and provides benefits to all children in the
State who apply for and meet eligibility standards.
``(III) The State plans under this title and title XXI do
not provide coverage for parents with higher family income
without covering parents with a lower family income.
``(IV) The State does not apply an income level for parents
that is lower than the effective income level (expressed as a
percent of the poverty line) that has been specified under
the State plan under title XIX (including under a waiver
authorized by the Secretary or under section 1902(r)(2)), as
of January 1, 2000, to be eligible for medical assistance as
a parent under this title.
``(iv) Definitions.--For purposes of this subsection:
``(I) The term `parent' has the meaning given such term for
purposes of section 1902(k)(1).
``(II) The term `poverty line' has the meaning given such
term in section 2110(c)(5).''.
(D) Appropriation from title xxi allotment for certain
medicaid expansion costs.--Subparagraph (B) of section
2105(a)(1) of the Social Security Act, as amended by section
14(a), is amended to read as follows:
``(B) FamilyCare parents.--Expenditures for medical
assistance that is attributable to expenditures described in
section 1905(u)(4)(A).''.
(E) Only counting enhanced portion for coverage of
additional pregnant women.--Section 1905 of the Social
Security Act (42 U.S.C. 1396d) is amended--
(i) in the fourth sentence of subsection (b), by inserting
``(except in the case of expenditures described in subsection
(u)(5))'' after ``do not exceed'';
(ii) in subsection (u), by inserting after paragraph (4)
(as inserted by subparagraph (C)), the following:
``(5) For purposes of the fourth sentence of subsection (b)
and section 2105(a), the following payments under this title
do not count against a State's allotment under section 2104:
``(A) Regular fmap for expenditures for pregnant women with
income above january 1, 2000 income level and below 185
percent of poverty.--The portion of the payments made for
expenditures described in paragraph (4)(A)(ii) that
represents the amount that would have been paid if the
enhanced FMAP had not been substituted for the Federal
medical assistance percentage.''.
(2) Under title xxi.--
(A) FamilyCare coverage.--Title XXI of the Social Security
Act (42 U.S.C. 1397aa et seq.) is amended by adding at the
end the following:
``SEC. 2111. OPTIONAL FAMILYCARE COVERAGE OF PARENTS OF
TARGETED LOW-INCOME CHILDREN.
``(a) Optional Coverage.--Notwithstanding any other
provision of this title, a State child health plan may
provide for coverage, through an amendment to its State child
health plan under section 2102, of FamilyCare assistance for
individuals who are targeted low-income parents in accordance
with this section, but only if--
``(1) the State meets the conditions described in section
1905(u)(4)(A)(iii); and
``(2) the State elects to provide medical assistance under
section 1902(a)(10)(A)(ii)(XIX), under section 1931, or under
a waiver under section 1115 to individuals described in
section 1902(k)(1)(A)(i) and elects an applicable income
level for such individuals that consistent with paragraphs
(1)(B) and (2) of section 1902(k), ensures to the maximum
extent possible, that those individuals shall be enrolled in
the same program as their children if their children are
eligible for coverage under title XIX (including under a
waiver authorized by the Secretary or under section
1902(r)(2)).''.
``(b) Definitions.--For purposes of this title:
``(1) FamilyCare assistance.--The term `FamilyCare
assistance' has the meaning given the term child health
assistance in section 2110(a) as if any reference to targeted
low-income children were a reference to targeted low-income
parents.
``(2) Targeted low-income parent.--The term `targeted low-
income parent' has the meaning given the term targeted low-
income child in section 2110(b) as if the reference to a
child were deemed a reference to a parent (as defined in
paragraph (3)) of the child; except that in applying such
section--
``(A) there shall be substituted for the income level
described in paragraph (1)(B)(ii)(I) the applicable income
level in effect for a targeted low-income child;
``(B) in paragraph (3), January 1, 2000, shall be
substituted for July 1, 1997; and
``(C) in paragraph (4), January 1, 2000, shall be
substituted for March 31, 1997.
``(3) Parent.--The term `parent' includes an individual
treated as a caregiver for purposes of carrying out section
1931.
``(4) Optional treatment of pregnant women as parents.--A
State child health plan may treat a pregnant woman who is not
otherwise a parent as a targeted low-income parent for
purposes of this section but only if the State has
established an income level under section 1902(l)(2)(A)(i)
for pregnant women that is at least 185 percent of the income
official poverty line described in such section.
``(c) References to Terms and Special Rules.--In the case
of, and with respect to, a State providing for coverage of
FamilyCare assistance to targeted low-income parents under
subsection (a), the following special rules apply:
``(1) Any reference in this title (other than subsection
(b)) to a targeted low-income child is deemed to include a
reference to a targeted low-income parent.
``(2) Any such reference to child health assistance with
respect to such parents is deemed a reference to FamilyCare
assistance.
``(3) In applying section 2103(e)(3)(B) in the case of a
family provided coverage under this section, the limitation
on total annual aggregate cost-sharing shall be applied to
the entire family.
``(4) In applying section 2110(b)(4), any reference to
`section 1902(l)(2) or 1905(n)(2) (as
[[Page S8226]]
selected by a State)' is deemed a reference to the income
level applicable to parents under section 1931 or under a
waiver approved under section 1115, or, in the case of a
pregnant woman described in subsection (b)(4), the income
level established under section 1902(l)(2)(A).
``(5) In applying section 2102(b)(3)(B), any reference to
children is deemed a reference to parents.''.
(B) Additional allotment for states providing familycare.--
(i) In general.--Section 2104 of the Social Security Act
(42 U.S.C. 1397dd) is amended by inserting after subsection
(c) the following:
``(d) Additional Allotments for State Providing
FamilyCare.--
``(1) Appropriation; total allotment.--For the purpose of
providing additional allotments to States to provide
FamilyCare coverage under section 2111, there is
appropriated, out of any money in the Treasury not otherwise
appropriated--
``(A) for fiscal year 2002, $2,000,000,000;
``(B) for fiscal year 2003, $2,000,000,000;
``(C) for fiscal year 2004, $3,000,000,000;
``(D) for fiscal year 2005, $3,000,000,000;
``(E) for fiscal year 2006, $6,000,000,000;
``(F) for fiscal year 2007, $7,000,000,000;
``(G) for fiscal year 2008, $8,000,000,000;
``(H) for fiscal year 2009, $9,000,000,000;
``(I) for fiscal year 2010, $10,000,000,000; and
``(J) for fiscal year 2011 and each fiscal year thereafter,
the amount of the allotment provided under this paragraph for
the preceding fiscal year increased by the percentage
increase (if any) in the medical care expenditure category of
the Consumer Price Index for All Urban Consumers (United
States city average).
``(2) State and territorial allotments.--
``(A) In general.--In addition to the allotments provided
under subsections (b) and (c), subject to paragraphs (3) and
(4), of the amount available for the additional allotments
under paragraph (1) for a fiscal year, the Secretary shall
allot to each State with a State child health plan approved
under this title--
``(i) in the case of such a State other than a commonwealth
or territory described in clause (ii), the same proportion as
the proportion of the State's allotment under subsection (b)
(determined without regard to subsection (f)) to 98.95
percent of the total amount of the allotments under such
section for such States eligible for an allotment under this
subparagraph for such fiscal year; and
``(ii) in the case of a commonwealth or territory described
in subsection (c)(3), the same proportion as the proportion
of the commonwealth's or territory's allotment under
subsection (c) (determined without regard to subsection (f))
to 1.05 percent of the total amount of the allotments under
such section for commonwealths and territories eligible for
an allotment under this subparagraph for such fiscal year.
``(B) Availability and redistribution of unused
allotments.--In applying subsections (e) and (f) with respect
to additional allotments made available under this
subsection, the procedures established under such subsections
shall ensure such additional allotments are only made
available to States which have elected to provide coverage
under section 2111.
``(3) Use of additional allotment.--Additional allotments
provided under this subsection are not available for amounts
expended before October 1, 2001. Such amounts are available
for amounts expended on or after such date for child health
assistance for targeted low-income children, as well as for
FamilyCare assistance.
``(4) Requiring election to provide familycare coverage.--
No payments may be made to a State under this title from an
allotment provided under this subsection unless the State has
made an election to provide FamilyCare assistance.''.
(ii) Conforming amendments.--Section 2104 of the Social
Security Act (42 U.S.C. 1397dd) is amended--
(I) in subsection (a), by inserting ``subject to subsection
(d),'' after ``under this section,'';
(II) in subsection (b)(1), by inserting ``and subsection
(d)'' after ``Subject to paragraph (4)''; and
(III) in subsection (c)(1), by inserting ``subject to
subsection (d),'' after ``for a fiscal year,''.
(C) No cost-sharing for pregnancy-related benefits.--
Section 2103(e)(2) of the Social Security Act (42 U.S.C.
1397cc(e)(2)) is amended--
(i) in the heading, by inserting ``and pregnancy-related
services'' after ``preventive services''; and
(ii) by inserting before the period at the end the
following: ``and for pregnancy-related services''.
(3) Effective date.--The amendments made by this subsection
apply to items and services furnished on or after October 1,
2001, whether or not regulations implementing such amendments
have been issued.
(b) Rules for Implementation Beginning With Fiscal Year
2005.--
(1) Required coverage of familycare parents.--Section
1902(a)(10)(A)(i) of the Social Security Act (42 U.S.C.
1396a(a)(10)(A)(i)) is amended--
(A) by striking ``or'' at the end of subclause (VI);
(B) by striking the semicolon at the end of subclause (VII)
and insert ``, or''; and
(C) by adding at the end the following:
``(VIII) who are described in subsection (k)(1) (or would
be described if subparagraph (A)(ii) of such subsection did
not apply) and who are in families with incomes that do not
exceed 100 percent of the poverty line applicable to a family
of the size involved;''.
(2) Expansion of availability of enhanced match under
medicaid for pre-chip expansions.--Paragraph (4) of section
1905(u) of the Social Security Act (42 U.S.C. 1396d(u)), as
inserted by subsection (a)(1)(C), is amended--
(A) by amending clause (ii) of subparagraph (A) to read as
follows:
``(ii) Certain pregnant women.--Expenditures for medical
assistance for pregnant women under section 1902(l)(1)(A) in
a family the income of which exceeds the 133 percent of the
income official poverty line.''; and
(B) by adding at the end the following:
``(B) Children in families with income above medicaid
mandatory level not previously described.--The expenditures
described in this subparagraph are expenditures (other than
expenditures described in paragraph (2) or (3)) for medical
assistance made available to any child who is eligible for
assistance under section 1902(a)(10)(A) (other than under
clause (i)) and the income of whose family exceeds the
minimum income level required under subsection 1902(l)(2)
(or, if higher, the minimum level required under section 1931
for that State) for a child of the age involved (treating any
child who is 19 or 20 years of age as being 18 years of
age).''.
(3) Offset of additional expenditures for enhanced match
for pre-chip expansion; elimination of offset for required
coverage of familycare parents.--
(A) In general.--Section 1905(u)(5) of the Social Security
Act (42 U.S.C. 1396d(u)(5)), as added by subsection
(a)(1)(E), is amended--
(i) by amending subparagraph (A) to read as follows:
``(A) Regular fmap for expenditures for pregnant women with
income above 133 percent of poverty.--The portion of the
payments made for expenditures described in paragraph
(4)(A)(ii) that represents the amount that would have been
paid if the enhanced FMAP had not been substituted for the
Federal medical assistance percentage.''; and
(ii) by adding at the end the following:
``(B) FamilyCare parents under 100 percent of poverty.--
Payments for expenditures described in paragraph (4)(A)(i) in
the case of parents whose income does not exceed 100 percent
of the income official poverty line applicable to a family of
the size involved.
``(C) Regular fmap for expenditures for certain children in
families with income above medicaid mandatory level.--The
portion of the payments made for expenditures described in
paragraph (4)(B) that represents the amount that would have
been paid if the enhanced FMAP had not been substituted for
the Federal medical assistance percentage.''.
(B) Conforming amendments.--Subparagraph (B) of section
2105(a)(1) of the Social Security Act, as amended by section
14(a) and subsection (a)(1)(D), is amended to read as
follows:
``(B) Certain familycare parents and others.--Expenditures
for medical assistance that is attributable to expenditures
described in section 1905(u)(4), except as provided in
section 1905(u)(5).''.
(4) Effective date.--The amendments made by this subsection
apply as of October 1, 2004, to fiscal years beginning on or
after such date and to expenditures under the State plan on
and after such date, whether or not regulations implementing
such amendments have been issued.
(c) Making Title XXI Base Allotments Permanent.--Section
2104(a) of the Social Security Act (42 U.S.C. 1397dd(a)) is
amended--
(1) by striking ``and'' at the end of paragraph (9);
(2) by striking the period at the end of paragraph (10) and
inserting ``; and''; and
(3) by adding at the end the following:
``(11) for fiscal year 2008 and each fiscal year
thereafter, the amount of the allotment provided under this
subsection for the preceding fiscal year increased by the
percentage increase (if any) in the medical care expenditure
category of the Consumer Price Index for All Urban Consumers
(United States city average).''.
(d) Optional Application of Presumptive Eligibility
Provisions to Parents.--Section 1920A of the Social Security
Act (42 U.S.C. 1396r-1a) is amended by adding at the end the
following:
``(e) A State may elect to apply the previous provisions of
this section to provide for a period of presumptive
eligibility for medical assistance for a parent (as defined
for purposes of section 1902(k)(1)) of a child with respect
to whom such a period is provided under this section.''.
(e) Conforming Amendments.--
(1) Eligibility categories.--Section 1905(a) of the Social
Security Act (42 U.S.C. 1396d(a)) is amended, in the matter
before paragraph (1)--
(A) by striking ``or'' at the end of clause (xii);
(B) by inserting ``or'' at the end of clause (xiii); and
(C) by inserting after clause (xiii) the following:
``(xiv) who are parents described (or treated as if
described) in section 1902(k)(1),''.
(2) Income limitations.--Section 1903(f)(4) of the Social
Security Act (42 U.S.C. 1396b(f)(4)) is amended--
[[Page S8227]]
(A) effective October 1, 2004, by in-
serting ``1902(a)(10)(A)(i)(VIII),'' after
``1902(a)(10)(A)(i)(VII),''; and
(B) by inserting ``1902(a)(10)(A)(ii)(XIX),'' after
``1902(a)(10)(A)(ii)(XVIII),''.
(3) Conforming amendment relating to no waiting period for
pregnant women.--Section 2102(b)(1)(B) of the Social Security
Act (42 U.S.C. 1397bb(b)(1)(B)) is amended--
(A) by striking ``, and'' at the end of clause (i) and
inserting a semicolon;
(B) by striking the period at the end of clause (ii) and
inserting ``; and''; and
(C) by adding at the end the following:
``(iii) may not apply a waiting period (including a waiting
period to carry out paragraph (3)(C)) in the case of a
targeted low-income parent who is pregnant.''.
SEC. 4. AUTOMATIC ENROLLMENT OF CHILDREN BORN TO TITLE XXI
PARENTS.
Section 2102(b)(1) of the Social Security Act (42 U.S.C.
1397bb(b)(1)) is amended by adding at the end the following:
``(C) Automatic eligibility of children born to a parent
being provided familycare.--Such eligibility standards shall
provide for automatic coverage of a child born to an
individual who is provided assistance under this title in the
same manner as medical assistance would be provided under
section 1902(e)(4) to a child described in such section.''.
SEC. 5. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE
MEDICAID PROGRAM AND TITLE XXI.
(a) Medicaid Program.--Section 1903(v) of the Social
Security Act (42 U.S.C. 1396b(v)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)''; and
(2) by adding at the end the following:
``(4)(A) A State may elect (in a plan amendment under this
title) to provide medical assistance under this title,
notwithstanding sections 401(a), 402(b), 403, and 421 of the
Personal Responsibility and Work Opportunity Reconciliation
Act of 1996, for aliens who are lawfully residing in the
United States (including battered aliens described in section
431(c) of such Act) and who are otherwise eligible for such
assistance, within any of the following eligibility
categories:
``(i) Pregnant women.--Women during pregnancy (and during
the 60-day period beginning on the last day of the
pregnancy).
``(ii) Children.--Children (as defined under such plan),
including optional targeted low-income children described in
section 1905(u)(2)(B).
``(iii) Parents.--If the State has elected the eligibility
category described in clause (ii), caretaker relatives who
are parents (including individuals treated as a caregiver for
purposes of carrying out section 1931) of children (described
in such clause or otherwise) who are eligible for medical
assistance under the plan.
``(B) In the case of a State that has elected to provide
medical assistance to a category of aliens under subparagraph
(A), no debt shall accrue under an affidavit of support
against any sponsor of such an alien on the basis of
provision of assistance to such category and the cost of such
assistance shall not be considered as an unreimbursed
cost.''.
(b) Title XXI.--Section 2107(e)(1) of the Social Security
Act (42 U.S.C. 1397gg(e)(1)) is amended by adding at the end
the following:
``(E) Section 1903(v)(4) (relating to optional coverage of
categories of lawful resident alien children and parents),
but only with respect to an eligibility category under this
title, if the same eligibility category has been elected
under such section for purposes of title XIX.''.
(c) Effective Date.--The amendments made by this section
take effect on October 1, 2001, and apply to medical
assistance and child health assistance furnished on or after
such date, whether or not regulations implementing such
amendments have been issued.
SEC. 6. OPTIONAL COVERAGE OF CHILDREN THROUGH AGE 20 UNDER
THE MEDICAID PROGRAM AND TITLE XXI.
(a) Medicaid.--
(1) In general.--Section 1902(l)(1)(D) of the Social
Security Act (42 U.S.C. 1396a(l)(1)(D)) is amended by
inserting ``(or, at the election of a State, 20 or 21 years
of age)'' after ``19 years of age''.
(2) Conforming amendments.--
(A) Section 1902(e)(3)(A) of the Social Security Act (42
U.S.C. 1396a(e)(3)(A)) is amended by inserting ``(or 1 year
less than the age the State has elected under subsection
(l)(1)(D))'' after ``18 years of age''.
(B) Section 1902(e)(12) of the Social Security Act (42
U.S.C. 1396a(e)(12)) is amended by inserting ``or such higher
age as the State has elected under subsection (l)(1)(D)''
after ``19 years of age''.
(C) Section 1920A(b)(1) of the Social Security Act (42
U.S.C. 1396r-1a(b)(1)) is amended by inserting ``or such
higher age as the State has elected under section
1902(l)(1)(D)'' after ``19 years of age''.
(D) Section 1928(h)(1) of the Social Security Act (42
U.S.C. 1396s(h)(1)) is amended by inserting ``or 1 year less
than the age the State has elected under section
1902(l)(1)(D)'' before the period at the end.
(E) Section 1932(a)(2)(A) of the Social Security Act (42
U.S.C. 1396u-2(a)(2)(A)) is amended by inserting ``(or such
higher age as the State has elected under section
1902(l)(1)(D))'' after ``19 years of age''.
(b) Title XXI.--Section 2110(c)(1) of the Social Security
Act (42 U.S.C. 1397jj(c)(1)) is amended by inserting ``(or
such higher age as the State has elected under section
1902(l)(1)(D))''.
(c) Effective Date.--The amendments made by this section
take effect on October 1, 2001, and apply to medical
assistance and child health assistance provided on or after
such date, whether or not regulations implementing such
amendments have been issued.
SEC. 7. APPLICATION OF SIMPLIFIED TITLE XXI PROCEDURES UNDER
THE MEDICAID PROGRAM.
(a) Application Under Medicaid.--
(1) In general.--Section 1902(l) of the Social Security Act
(42 U.S.C. 1396a(l)) is amended--
(A) in paragraph (3), by inserting ``subject to paragraph
(5)'', after ``Notwithstanding subsection (a)(17),''; and
(B) by adding at the end the following:
``(5) With respect to determining the eligibility of
individuals under 19 years of age (or such higher age as the
State has elected under paragraph (1)(D)) for medical
assistance under subsection (a)(10)(A) and, separately, with
respect to determining the eligibility of individuals for
medical assistance under subsection (a)(10)(A)(i)(VIII) or
(a)(10)(A)(ii)(XIX), notwithstanding any other provision of
this title, if the State has established a State child health
plan under title XXI--
``(A) the State may not apply a resource standard;
``(B) the State shall use the same simplified eligibility
form (including, if applicable, permitting application other
than in person) as the State uses under such State child
health plan with respect to such individuals;
``(C) the State shall provide for initial eligibility
determinations and redeterminations of eligibility using
verification policies, forms, and frequency that are no less
restrictive than the policies, forms, and frequency the State
uses for such purposes under such State child health plan
with respect to such individuals; and
``(D) the State shall not require a face-to-face interview
for purposes of initial eligibility determinations and
redeterminations unless the State requires such an interview
for such purposes under such child health plan with respect
to such individuals.''.
(2) Effective date.--The amendments made by paragraph (1)
apply to determinations of eligibility made on or after the
date that is 1 year after the date of the enactment of this
Act, whether or not regulations implementing such amendments
have been issued.
(b) Presumptive Eligibility.--
(1) In general.--Section 1920A(b)(3)(A)(i) of the Social
Security Act (42 U.S.C. 1396r-1a(b)(3)(A)(i)) is amended by
inserting ``a child care resource and referral agency,''
after ``a State or tribal child support enforcement
agency,''.
(2) Application to presumptive eligibility for pregnant
women under medicaid.--Section 1920(b) of the Social Security
Act (42 U.S.C. 1396r-1(b)) is amended by adding at the end
after and below paragraph (2) the following flush sentence:
``The term `qualified provider' includes a qualified entity
as defined in section 1920A(b)(3).''.
(3) Application under title xxi.--
(A) In general.--Section 2107(e)(1)(D) of the Social
Security Act (42 U.S.C. 1397gg(e)(1)) is amended to read as
follows:
``(D) Sections 1920 and 1920A (relating to presumptive
eligibility).''.
(B) Conforming elimination of resource test.--Section
2102(b)(1)(A) of such Act (42 U.S.C. 1397bb(b)(1)(A)) is
amended--
(i) by striking `` and resources (including any standards
relating to spenddowns and disposition of resources)''; and
(ii) by adding at the end the following: ``Effective 1 year
after the date of the enactment of the FamilyCare Act of
2001, such standards may not include the application of a
resource standard or test.''.
(c) Automatic Reassessment of Eligibility for Title XXI and
Medicaid Benefits for Children Losing Medicaid or Title XXI
Eligibility.--
(1) Loss of medicaid eligibility.--Section 1902(a) of the
Social Security Act (42 U.S.C. 1396a(a)) is amended--
(A) by striking the period at the end of paragraph (65) and
inserting ``; and'', and
(B) by inserting after paragraph (65) the following:
``(66) provide, in the case of a State with a State child
health plan under title XXI, that before medical assistance
to a child (or a parent of a child) is discontinued under
this title, a determination of whether the child (or parent)
is eligible for benefits under title XXI shall be made and,
if determined to be so eligible, the child (or parent) shall
be automatically enrolled in the program under such title
without the need for a new application.''.
(2) Loss of title xxi eligibility and coordination with
medicaid.--Section 2102(b) (42 U.S.C. 1397bb(b)) is amended--
(A) in paragraph (3), by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respectively, and by
inserting after subparagraph (C) the following:
``(D) that before health assistance to a child (or a parent
of a child) is discontinued under this title, a determination
of whether the child (or parent) is eligible for benefits
under title XIX is made and, if determined to be so eligible,
the child (or parent) is automatically enrolled in the
program under such title without the need for a new
application;'';
(B) by redesignating paragraph (4) as paragraph (5); and
(C) by inserting after paragraph (3) the following new
paragraph:
[[Page S8228]]
``(4) Coordination with medicaid.--The State shall
coordinate the screening and enrollment of individuals under
this title and under title XIX consistent with the following:
``(A) Information that is collected under this title or
under title XIX which is needed to make an eligibility
determination under the other title shall be transmitted to
the appropriate administering entity under such other title
in a timely manner so that coverage is not delayed and
families do not have to submit the same information twice.
Families shall be provided the information they need to
complete the application process for coverage under both
titles and be given appropriate notice of any determinations
made on their applications for such coverage.
``(B) If a State does not use a joint application under
this title and such title, the State shall--
``(i) promptly inform a child's parent or caretaker in
writing and, if appropriate, orally, that a child has been
found likely to be eligible under title XIX;
``(ii) provide the family with an application for medical
assistance under such title and offer information about what
(if any) further information, documentation, or other steps
are needed to complete such application process;
``(iii) offer assistance in completing such application
process; and
``(iv) promptly transmit the separate application under
this title or the information obtained through such
application, and all other relevant information and
documentation, including the results of the screening
process, to the State agency under title XIX for a final
determination on eligibility under such title.
``(C) Applicants are notified in writing of--
``(i) benefits (including restrictions on cost-sharing)
under title XIX; and
``(ii) eligibility rules that prohibit children who have
been screened eligible for medical assistance under such
title from being enrolled under this title, other than
provisional temporary enrollment while a final eligibility
determination is being made under such title.
``(D) If the agency administering this title is different
from the agency administering a State plan under title XIX,
such agencies shall coordinate the screening and enrollment
of applicants for such coverage under both titles.
``(E) The coordination procedures established between the
program under this title and under title XIX shall apply not
only to the initial eligibility determination of a family but
also to any renewals or redeterminations of such
eligibility.''.
(3) Effective date.--The amendments made by paragraphs (1)
and (2) apply to individuals who lose eligibility under the
medicaid program under title XIX, or under a State child
health insurance plan under title XXI, respectively, of the
Social Security Act on or after October 1, 2001 (or, if
later, 60 days after the date of the enactment of this Act),
whether or not regulations implementing such amendments have
been issued.
(d) Provision of Medicaid and CHIP Applications and
Information Under the School Lunch Program.--Section
9(b)(2)(B) of the Richard B. Russell National School Lunch
Act (42 U.S.C. 1758(b)(2)(B)) is amended--
(1) by striking ``(B) Applications'' and inserting ``(B)(i)
Applications''; and
(2) by adding at the end the following:
``(ii)(I) Applications for free and reduced price lunches
that are distributed pursuant to clause (i) to parents or
guardians of children in attendance at schools participating
in the school lunch program under this Act shall also contain
information on the availability of medical assistance under
title XIX of the Social Security Act (42 U.S.C. 1396 et seq.)
and of child health and FamilyCare assistance under title XXI
of such Act, including information on how to obtain an
application for assistance under such programs.
``(II) Information on the programs referred to in subclause
(I) shall be provided on a form separate from the application
form for free and reduced price lunches under clause (i).''.
(e) 12-Months Continuous Eligibility.--
(1) Medicaid.--Section 1902(e)(12) of the Social Security
Act (42 U.S.C. 1396a(e)(12)) is amended--
(A) by striking ``At the option of the State, the plan
may'' and inserting ``The plan shall'';
(B) by striking ``an age specified by the State (not to
exceed 19 years of age)'' and inserting ``19 years of age (or
such higher age as the State has elected under subsection
(l)(1)(D)) or, at the option of the State, who is eligible
for medical assistance as the parent of such a child''; and
(C) in subparagraph (A), by striking ``a period (not to
exceed 12 months) '' and inserting ``the 12-month period
beginning on the date''.
(2) Title XXI.--Section 2102(b)(2) of such Act (42 U.S.C.
1397bb(b)(2)) is amended by adding at the end the following:
``Such methods shall provide 12-months continuous eligibility
for children under this title in the same manner that section
1902(e)(12) provides 12-months continuous eligibility for
children described in such section under title XIX. If a
State has elected to apply section 1902(e)(12) to parents,
such methods may provide 12-months continuous eligibility for
parents under this title in the same manner that such section
provides 12-months continuous eligibility for parents
described in such section under title XIX.''.
(3) Effective date.--
(A) In general.--The amendments made by this subsection
shall take effect on October 1, 2001 (or, if later, 60 days
after the date of the enactment of this Act), whether or not
regulations implementing such amendments have been issued.
SEC. 8. IMPROVING WELFARE-TO-WORK TRANSITION UNDER THE
MEDICAID PROGRAM.
(a) Making Provision Permanent.--
(1) In general.--Subsection (f) of section 1925 of the
Social Security Act (42 U.S.C. 1396r-6) is repealed.
(2) Conforming amendment.--Section 1902(e)(1) of the Social
Security Act (42 U.S.C. 1396a(e)(1)) is repealed.
(b) State Option of Initial 12-Month Eligibility.--Section
1925 of the Social Security Act (42 U.S.C. 1396r-6) is
amended--
(1) in subsection (a), by adding at the end the following:
``(5) Option of 12-month initial eligibility period.--A
State may elect to treat any reference in this subsection to
a 6-month period (or 6 months) as a reference to a 12-month
period (or 12 months). In the case of such an election,
subsection (b) shall not apply.''; and
(2) in subsection (b)(1), by inserting ``and subsection
(a)(5)'' after ``paragraph (3)''.
(c) Simplification.--
(1) Removal of administrative reporting requirements for
additional 6-month extension.--Section 1925(b)(2) of the
Social Security Act (42 U.S.C. 1396r-6(b)(2)) is amended--
(A) by striking subparagraph (B);
(B) in subparagraph (A)(i)--
(i) in the heading, by striking ``and requirements'';
(ii) by striking ``(I)'' and all that follows through
``(II)'' and inserting ``(i)'';
(iii) by striking ``, and (III)'' and inserting ``and
(ii)'';
(iv) by redesignating such subparagraph as subparagraph (A)
(with appropriate indentation); and
(C) in subparagraph (A)(ii)--
(i) in the heading, by striking ``reporting requirements
and'';
(ii) by striking ``notify the family of the reporting
requirement under subparagraph (B)(ii) and'' and inserting
``provide the family with notification of''; and
(iii) by redesignating such subparagraph as subparagraph
(B) (with appropriate indentation).
(2) Removal of requirement for previous receipt of medical
assistance.--Section 1925(a)(1) of the Social Security Act
(42 U.S.C. 1396r-6(a)(1)) is amended--
(A) by inserting ``but subject to subparagraph (B)'' after
``any other provision of this title'';
(B) by redesignating the matter after ``Requirement.--'' as
a subparagraph (A) with the heading ``In general.--'' and
with the same indentation as subparagraph (B) (as added by
subparagraph (C)); and
(C) by adding at the end the following:
``(B) State option to waive requirement for 3 months
previous receipt of medical assistance.--A State may, at its
option, elect also to apply subparagraph (A) in the case of a
family that had applied for and was eligible for such aid for
fewer than 3 months during the 6 immediately preceding months
described in such subparagraph.''.
(3) Permitting increase or waiver of 185 percent of poverty
earning limit.--Section 1925(b)(3)(A)(iii)(III) of the Social
Security Act (42 U.S.C. 1396r-6(b)(3)(A)(iii)(III)) is
amended--
(A) by inserting ``(at its option)'' after ``the State'';
and
(B) by inserting ``(or such higher percent as the State may
specify)'' after ``185 percent''.
(4) Exemption for states covering needy families up to 185
percent of poverty.--Section 1925 of the Social Security Act
(42 U.S.C. 1396r-6), as amended by subsection (a), is
amended--
(A) in each of subsections (a)(1) and (b)(1), by inserting
``but subject to subsection (f),'' after ``Notwithstanding
any other provision of this title,''; and
(B) by adding at the end the following:
``(f) Exemption for State Covering Needy Families Up to 185
Percent of Poverty.--
``(1) In general.--At State option, the provisions of this
section shall not apply to a State that uses the authority
under section 1902(a)(10)(A)(ii)(XIX), section 1931(b)(2)(C),
or otherwise to make medical assistance available under the
State plan under this title to eligible individuals described
in section 1902(k)(1), or all individuals described in
section 1931(b)(1), and who are in families with gross
incomes (determined without regard to work-related child care
expenses of such individuals) at or below 185 percent of the
income official poverty line (as defined by the Office of
Management and Budget, and revised annually in accordance
with section 673(2) of the Omnibus Budget Reconciliation Act
of 1981) applicable to a family of the size involved.
``(2) Application to other provisions of this title.--The
State plan of a State described in paragraph (1) shall be
deemed to meet the requirements of section
1902(a)(10)(A)(i)(I).''.
(d) Effective Date.--The amendments made by this section
take effect on October 1, 2001, whether or not regulations
implementing such amendments have been issued.
SEC. 9. ELIMINATION OF 100 HOUR RULE AND OTHER AFDC-RELATED
ELIGIBILITY RESTRICTIONS.
(a) In General.--Section 1931(b)(1)(A)(ii) of the Social
Security Act (42 U.S.C. 1396u-
[[Page S8229]]
1(b)(1)(A)(ii)) is amended by inserting ``other than the
requirement that the child be deprived of parental support or
care by reason of the death, continued absence from the home,
incapacity, or unemployment of a parent,'' after ``section
407(a),''.
(b) Conforming Amendment.--Section 1905(a) of the Social
Security Act (42 U.S.C. 1396d(a)) is amended, in the matter
before paragraph (1), in clause (ii), by striking ``if such
child is (or would, if needy, be) a dependent child under
part A of title IV''.
(c) Effective Date.--The amendments made by this section
apply to eligibility determinations made on or after October
1, 2001, whether or not regulations implementing such
amendments have been issued.
SEC. 10. STATE GRANT PROGRAM FOR MARKET INNOVATION.
(a) In General.--The Secretary of Health and Human Services
(in this section referred to as the ``Secretary'') shall
establish a program (in this section referred to as the
``program'') to award demonstration grants under this section
to States to allow States to demonstrate the effectiveness of
innovative ways to increase access to health insurance
through market reforms and other innovative means. Such
innovative means may include any of the following:
(1) Alternative group purchasing or pooling arrangements,
such as purchasing cooperatives for small businesses,
reinsurance pools, or high risk pools.
(2) Individual or small group market reforms.
(3) Consumer education and outreach.
(4) Subsidies to individuals, employers, or both, in
obtaining health insurance.
(b) Scope; Duration.--The program shall be limited to not
more than 10 States and to a total period of 5 years,
beginning on the date the first demonstration grant is made.
(c) Conditions for Demonstration Grants.--
(1) In general.--The Secretary may not provide for a
demonstration grant to a State under the program unless the
Secretary finds that under the proposed demonstration grant--
(A) the State will provide for demonstrated increase of
access for some portion of the existing uninsured population
through a market innovation (other than merely through a
financial expansion of a program initiated before the date of
the enactment of this Act);
(B) the State will comply with applicable Federal laws;
(C) the State will not discriminate among participants on
the basis of any health status-related factor (as defined in
section 2791(d)(9) of the Public Health Service Act (42
U.S.C. 300gg-91(d)(9)), except to the extent a State wishes
to focus on populations that otherwise would not obtain
health insurance because of such factors; and
(D) the State will provide for such evaluation, in
coordination with the evaluation required under subsection
(d), as the Secretary may specify.
(2) Application.--The Secretary shall not provide a
demonstration grant under the program to a State unless--
(A) the State submits to the Secretary such an application,
in such a form and manner, as the Secretary specifies;
(B) the application includes information regarding how the
demonstration grant will address issues such as governance,
targeted population, expected cost, and the continuation
after the completion of the demonstration grant period; and
(C) the Secretary determines that the demonstration grant
will be used consistent with this section.
(3) Focus.--A demonstration grant proposal under this
section need not cover all uninsured individuals in a State
or all health care benefits with respect to such individuals.
(d) Evaluation.--The Secretary shall enter into a contract
with an appropriate entity outside the Department of Health
and Human Services to conduct an overall evaluation of the
program at the end of the program period. Such evaluation
shall include an analysis of improvements in access, costs,
quality of care, or choice of coverage, under different
demonstration grants.
(e) Option To Provide for Initial Planning Grants.--
Notwithstanding the previous provisions of this section,
under the program the Secretary may provide for a portion of
the amounts appropriated under subsection (f) (not to exceed
$5,000,000) to be made available to any State for initial
planning grants to permit States to develop demonstration
grant proposals under the previous provisions of this
section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated $100,000,000 for each fiscal year to carry
out this section. Amounts appropriated under this subsection
shall remain available until expended.
(g) State Defined.--In this section, the term ``State'' has
the meaning given such term for purposes of title XIX of the
Social Security Act (42 U.S.C. 1396 et seq.).
SEC. 11. LIMITATIONS ON CONFLICTS OF INTEREST.
(a) Limitation on Conflicts of Interest in Marketing
Activities.--
(1) Title xxi.--Section 2105(c) of the Social Security Act
(42 U.S.C. 300aa-5(c)) is amended by adding at the end the
following:
``(8) Limitation on expenditures for marketing
activities.--Amounts expended by a State for the use of an
administrative vendor in marketing health benefits coverage
to low-income children under this title shall not be
considered, for purposes of subsection (a)(2)(D), to be
reasonable costs to administer the plan unless the following
conditions are met with respect to the vendor:
``(A) The vendor is independent of any entity offering the
coverage in the same area of the State in which the vendor
is conducting marketing activities.
``(B) No person who is an owner, employee, consultant, or
has a contract with the vendor either has any direct or
indirect financial interest with such an entity or has been
excluded from participation in the program under this title
or title XVIII or XIX or debarred by any Federal agency, or
subject to a civil money penalty under this Act.''.
(b) Prohibition of Affiliation With Debarred Individuals.--
(1) Medicaid.--Section 1903(i) of the Social Security Act
(42 U.S.C. 1396b(i))is amended--
(A) by striking the period at the end of paragraph (20) and
inserting ``; or''; and
(B) by inserting after paragraph (20) the following:
``(21) with respect to any amounts expended for an entity
that receives payments under the plan unless--
``(A) no person with an ownership or control interest (as
defined in section 1124(a)(3)) in the entity is a person that
is debarred, suspended, or otherwise excluded from
participating in procurement or non-procurement activities
under the Federal Acquisition Regulation; and
``(B) such entity has not entered into an employment,
consulting, or other agreement for the provision of items or
services that are material to such entity's obligations under
the plan with a person described in subparagraph (A).''.
(2) Title xxi.--Section 2107(e)(1) of the Social Security
Act (42 U.S.C. 1397gg(e)(1)), as amended by sections 5(b) and
7(b)(3), is further amended--
(A) in subparagraph (B), by striking ``and (17)'' and
inserting ``(17), and (21)''; and
(B) by adding at the end the following:
``(F) Section 1902(a)(67) (relating to prohibition of
affiliation with debarred individuals).''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures made on or after October 1, 2001,
whether or not regulations implementing such amendments have
been issued.
SEC. 12. INCREASE IN CHIP ALLOTMENT FOR EACH OF FISCAL YEARS
2002 THROUGH 2004.
Paragraphs (5), (6), and (7) of section 2104(a) of the
Social Security Act (42 U.S.C. 1397dd(a)) are amended by
striking ``$3,150,000,000'' each place it appears and
inserting ``$4,150,000,000''.
SEC. 13. DEMONSTRATION PROGRAMS TO IMPROVE MEDICAID AND CHIP
OUTREACH TO HOMELESS INDIVIDUALS AND FAMILIES.
(a) Authority.--The Secretary of Health and Human Services
may award demonstration grants to not more than 7 States (or
other qualified entities) to conduct innovative programs that
are designed to improve outreach to homeless individuals and
families under the programs described in subsection (b) with
respect to enrollment of such individuals and families under
such programs and the provision of services (and coordinating
the provision of such services) under such programs.
(b) Programs for Homeless Described.--The programs
described in this subsection are as follows:
(1) Medicaid.--The program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
(2) CHIP.--The program under title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.).
(3) TANF.--The program under part of A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
(4) SAMHSA block grants.--The program of grants under part
B of title XIX of the Public Health Service Act (42 U.S.C.
300x-1 et seq.).
(5) Food stamp program.--The program under the Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.).
(6) Workforce investment act.--The program under the
Workforce Investment Act of 1999 (29 U.S.C. 2801 et seq.).
(7) Welfare-to-work.--The welfare-to-work program under
section 403(a)(5) of the Social Security Act (42 U.S.C.
603(a)(5)).
(8) Other programs.--Other public and private benefit
programs that serve low-income individuals.
(c) Appropriations.--For the purposes of carrying out this
section, there is appropriated for fiscal year 2002, out of
any funds in the Treasury not otherwise appropriated,
$10,000,000, to remain available until expended.
SEC. 14. TECHNICAL AND CONFORMING AMENDMENTS TO AUTHORITY TO
PAY MEDICAID EXPANSION COSTS FROM TITLE XXI
APPROPRIATION.
(a) Authority To Pay Medicaid Expansion Costs From Title
XXI Appropriation.--Section 2105(a) of the Social Security
Act (42 U.S.C. 1397ee(a)) is amended to read as follows:
``(a) Allowable Expenditures.--
``(1) In general.--Subject to the succeeding provisions of
this section, the Secretary shall pay to each State with a
plan approved under this title, from its allotment under
section 2104, an amount for each quarter equal to the
enhanced FMAP of the following expenditures in the quarter:
``(A) Child health assistance under medicaid.--Expenditures
for child health assistance under the plan for targeted low-
income
[[Page S8230]]
children in the form of providing medical assistance for
expenditures described in the fourth sentence of section
1905(b).
``(B) Reserved.--[reserved].
``(C) Child health assistance under this title.--
Expenditures for child health assistance under the plan for
targeted low-income children in the form of providing health
benefits coverage that meets the requirements of section
2103.
``(D) Assistance and administrative expenditures subject to
limit.--Expenditures only to the extent permitted consistent
with subsection (c)--
``(i) for other child health assistance for targeted low-
income children;
``(ii) for expenditures for health services initiatives
under the plan for improving the health of children
(including targeted low-income children and other low-income
children);
``(iii) for expenditures for outreach activities as
provided in section 2102(c)(1) under the plan; and
``(iv) for other reasonable costs incurred by the State to
administer the plan.
``(2) Order of payments.--Payments under a subparagraph of
paragraph (1) from a State's allotment for expenditures
described in each such subparagraph shall be made on a
quarterly basis in the order of such subparagraph in such
paragraph.
``(3) No duplicative payment.--In the case of expenditures
for which payment is made under paragraph (1), no payment
shall be made under title XIX.''.
(b) Conforming Amendments.--
(1) Section 1905(u).--Section 1905(u)(1)(B) of the Social
Security Act (42 U.S.C. 1396d(u)(1)(B)) is amended by
inserting ``and section 2105(a)(1)'' after ``subsection
(b)''.
(2) Section 2105(c).--Section 2105(c)(2)(A) of the Social
Security Act (42 U.S.C. 1397ee(c)(2)(A)) is amended by
striking ``subparagraphs (A), (C), and (D) of''.
(c) Effective Date.--The amendments made by this section
shall be effective as if included in the enactment of the
Balanced Budget Act of 1997 (Public Law 105-33; 111 Stat.
251), whether or not regulations implementing such amendments
have been issued.
SEC. 15. ADDITIONAL CHIP REVISIONS.
(a) Limiting Cost-Sharing to 2.5 Percent for Families with
Income Below 150 Percent of Poverty.--Section 2103(e)(3)(A)
of the Social Security Act (42 U.S.C. 1397cc(e)(3)(A)) is
amended--
(1) by striking ``and'' at the end of clause (i);
(2) by striking the period at the end of clause (ii) and
inserting ``; and''; and
(3) by adding at the end the following new clause:
``(iii) total annual aggregate cost-sharing described in
clauses (i) and (ii) with respect to all such targeted low-
income children in a family under this title that exceeds 2.5
percent of such family's income for the year involved.''.
(b) Reporting of Enrollment Data.--
(1) Quarterly reports.--Section 2107(b)(1) of such Act (42
U.S.C. 1397gg(b)(1)) is amended by adding at the end the
following: ``In quarterly reports on enrollment required
under this paragraph, a State shall include information on
the age, gender, race, ethnicity, service delivery system,
and family income of individuals enrolled.''.
(2) Annual reports.--Section 2108(b)(1)(B)(i) of such Act
(42 U.S.C. 1397hh(b)(1)(B)(i)) is amended by inserting
``primary language of enrollees,'' after ``family income,''.
(c) Employer Coverage Waiver Changes.--Section 2105(c)(3)
of such Act (42 U.S.C. 1397ee(c)(3)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii) and indenting appropriately;
(2) by designating the matter beginning with ``Payment may
be made'' as a subparagraph (A) with the heading ``In
general'' and indenting appropriately; and
(3) by adding at the end the following new subparagraphs:
``(B) Application of requirements.--In carrying out
subparagraph (A)--
``(i) the Secretary shall not require a minimum employer
contribution level that is separate from the requirement of
cost-effectiveness under subparagraph (A)(i), but a State
shall identify a reasonable minimum employer contribution
level that is based on data demonstrating that such a level
is representative to the employer-sponsored insurance market
in the State and shall monitor employer contribution levels
over time to determine whether substitution is occurring and
report the findings in annual reports under section 2108(a);
``(ii) the State shall establish a waiting period of at
least 6 months without group health coverage, but may
establish reasonable exceptions to such period and shall not
apply such a waiting period to a child who is provided
coverage under a group health plan under section 1906;
``(iii) subject to clause (iv), the State shall provide
satisfactory assurances that the minimum benefits and cost-
sharing protections established under this title are
provided, either through the coverage under subparagraph (A)
or as a supplement to such coverage; and
``(iv) coverage under such subparagraph shall not be
considered to violate clause (iii) because it does not comply
with requirements relating to reviews of health service
decisions if the enrollee involved is provided the option of
being provided benefits directly under this title.
``(C) Access to external review process.--In carrying out
subparagraph (A), if a State provides coverage under a group
health plan that does not meet the following external review
requirements, the State must give applicants and enrollees
(at initial enrollment and at each redetermination of
eligibility) the option to obtain health benefits coverage
other than through that group health plan:
``(i) The enrollee has an opportunity for external review
of a--
``(I) delay, denial, reduction, suspension, or termination
of health services, in whole or in part, including a
determination about the type or level of services; and
``(II) failure to approve, furnish, or provide payment for
health services in a timely manner.
``(ii) The external review is conducted by the State or a
impartial contractor other than the contractor responsible
for the matter subject to external review.
``(iii) The external review decision is made on a timely
basis in accordance with the medical needs of the patient. If
the medical needs of the patient do not dictate a shorter
time frame, the review must be completed--
``(I) within 90 calendar days of the date of the request
for internal or external review; or
``(II) within 72 hours if the enrollee's physician or plan
determines that the deadline under subclause (I) could
seriously jeopardize the enrollee's life or health or ability
to attain, maintain, or regain maximum function (except that
a State may extend the 72-hour deadline by up to 14 days if
the enrollee requests an extension).
``(iv) The external review decision shall be in writing.
``(v) Applicants and enrollees have an opportunity--
``(I) to represent themselves or have representatives of
their choosing in the review process;
``(II) timely review their files and other applicable
information relevant to the review of the decision; and
``(III) fully participate in the review process, whether
the review is conducted in person or in writing, including by
presenting supplemental information during the review
process.''.
(d) Effective Date.--The amendments made by this section
apply as of October 1, 2001, whether or not regulations
implementing such amendments have been issued.
____
National Women's Law Center,
Washington, DC, July 24, 2001.
Hon. Edward M. Kennedy,
Hon. Olympia Snowe,
U.S. Senate, Washington, DC.
Dear Senators Kennedy and Snowe: We would like to thank you
for your leadership in introducing the ``FamilyCare Act of
2001,'' which would allow states to provide health insurance
coverage for millions of women. This is such a critical
women's health issue that over one hundred organizations
working on women's health throughout the nation have endorsed
the bill. The list of these organizations follows:
Organizations Addressing Women's Health That Endorse the FamilyCare Act
of 2001
9to5 National Association of Working Women
AFL-CIO
Abortion Access Project
Abortion Rights Fund of Western Massachusetts
ACCESS/Women's Health Rights Coalition
African American Women Evolving
Alan Guttmacher Institute
American Association of University Women
American College of Nurse-Midwives
American College of Obstetricians and Gynecologists
American Counseling Association
American Federation of Teachers
American Medical Women's Association
American Public Health Association
Americans for Democratic Action
Association of Maternal and Child Health Programs
Association of Reproductive Health Professionals
Boston Women's Health Book Collective
California Women's Law Center
Catholics for a Free Choice
Center for Community Change
Center for Reproductive Law and Policy
Center for Women Policy Studies
Central Conference of American Rabbis
Child Care Law Center
Choice USA
Church Women United
Coalition of Labor Union Women
Connecticut Association for Human Services
Connecticut Sexual Assault Crisis Services
Connecticut Women's Health Campaign
Contact Center
FamiliesUSA
Family Planning Advocates of New York State
Family Violence Prevention Fund
Family Voices
Feminist Majority
Feminist Women's Health Center
Florida NOW
Friends of Midwives, CT
Hadassah
Human Rights Campaign
Human Services Coalition of Dade County
Jewish Women International
Jewish Women's Coalition, Inc.
Juneau Pro-Choice Coalition
Justice for Women Working Group of the National Council of
Churches
Lutheran Office for Governmental Affairs, ELCA
[[Page S8231]]
McAuley Institute
Maine Women's Health Campaign
March of Dimes
Mexican American Legal Defense and Education Fund
Ms. Foundation for Women
National Abortion and Reproductive Rights Action League
National Abortion Federation
National Asian Women's Health Organization
National Association of Commissions on Women
National Association of Community Health Centers, Inc.
National Association of Nurse Practitioners in Women's Health
National Association of Public Hospitals and Health Systems
National Association of Social Workers
National Black Nurses Association
National Black Women's Health Project
National Center for Policy Research for Women and Families
National Center on Poverty Law
National Center on Women and Aging
National Coalition Against Domestic Violence
National Council of Churches of Christ in the USA
National Council of Jewish Women
National Council of Women's Organizations
National Family Planning and Reproductive Health Association
National Health Law Program
National Hispanic Council on Aging
National Hispanic Medical Association
National Network of Abortion Funds
National Organization for Women
National Partnership for Women and Families
National Training Center on Domestic and Sexual Violence
National Women's Health Network
National Women's Law Center
National Women's Political Caucus
New York Affiliate of the National Abortion and Reproductive
Rights Action League (NARAL/NY)
Northwest Connecticut Chapter of the Older Women's League
Northwest Women's Law Center
NOW Legal Defense and Educational Fund
Ohio Empowerment Coalition
Oregon Law Center
Planned Parenthood Federation of America
Progressive Leadership Alliance of Nevada
Project WISE/Project Inform
Religious Coalition for Reproductive Choice
Religious Network of Equality for Women
Service Employees International Union
Society for Women's Health Research
Texas Council on Family Violence
Union of American Hebrew Congregations
Unitarian Universalist Association of
Congregations
Welfare Law Center
Welfare Rights Initiative
Westchester Coalition for Legal Abortion
Wider Opportunities for Women
Women Employed
Women Empowered Against Violence, Incorporated
Women Leaders Online
Women of Reform Judaism
Women Work!
Women's Emergency Network
Women's International Public Health Network
Working for Equality and Economic Liberation
YWCA of the USA
Zeta Phi Beta Sorority
Sincerely,
Marcia D. Greenberger,
Co-President.
Regan Ralph,
Vice President, Women's Health and Reproductive Rights.
____
American Academy of Pediatrics,
Washington, DC, July 24, 2001.
Hon. Edward M. Kennedy,
U.S. Senate,
Washington, DC.
Dear Senator Kennedy: On behalf of the 55,000 members of
the American Academy of Pediatrics, I am writing to express
the Academy's strong support of the Family Care Act of 2001.
This legislation takes critical steps to ensure that every
child in the United States has access to affordable quality
health care. We are pleased that you and your colleagues have
put this measure forward and we look forward to working with
you in the coming months to ensure that the bill's provisions
become law.
In addition to the important expansion of coverage options
under Medicaid and SCHIP, including those for pregnant women
and immigrant children and their families, we strongly
endorse the numerous components of the legislation that will
make getting enrolled, and staying enrolled, in Medicaid and
SCHIP simpler for children and families. By expanding the
types of entities that are able to perform presumptive
eligibility determinations, consolidating application and
enrollment procedures and providing for automatic
redetermination of eligibility, states can ensure that
children and families have seamless access to quality care.
We appreciate your continued attention to the health care
needs of our nation's children. If we can be of assistance in
your efforts, please do not hesitate to contact me at (202)
347-8600.
Sincerely,
Graham Newson,
Director,
Department of Federal Affairs.
____
American Hospital Association,
Washington, DC, July 24, 2001.
Hon. Edward M. Kennedy,
Chairman, Committee on Health, Education, Labor, and
Pensions, U.S. Senate, Russell Building, Washington, DC.
Dear Chairman Kennedy: The American Hospital Association
(AHA), which represents 5,000 hospitals, health care systems,
networks, and other providers of care, shares your goal of
expanding access to health care coverage for the nation's
over 42 million uninsured Americans. As you know, eight out
of every 10 uninsured persons lives in a working family. Ten
million of the uninsured are children. The uninsured are
concentrated disproportionately in low-income families. And
while health care coverage by itself does not guarantee good
health or access to appropriate health services, the absence
of health care coverage is a major contributor to poor
health.
AHA supports an array of legislative proposals that would
expand coverage to low-income people, including those that
would build on current programs such as Medicaid and the
State Children's Health Insurance Program (S-CHIP), and those
that would use changes in the tax code to bolster coverage.
Therefore, AHA strongly supports the objective of your
bipartisan legislation, the Family Care Act of 2001,
sponsored with Senator Snowe. Your legislation embraces, as
one option, expanding state options to allow coverage of the
parents of children covered by S-CHIP. We support provisions
that would improve state options for Medicaid coverage for
children, pregnant women, and those making the transition
from welfare to work. Furthermore, we applaud your provisions
that would simplify applications, increased outreach
activities, and create state grant programs to encourage
market innovation in health care insurance. AHA believes
these are good first steps toward lowering the number of the
uninsured.
In addition to expanding public programs, AHA supports
other measures that utilize the tax code to make health care
insurance more affordable for low-income working families.
Toward that end, AHA also supports the bipartisan REACH Act
drafted by Senators Jeffords, Snowe, Frist, Chafee, Breaux,
Lincoln and Carper; and the bipartisan Fair Care for the
Uninsured Act (S. 683) sponsored by Senators Santorum and
Torricelli. Both of these bills would establish refundable
tax credits to help low-income families purchase health care
insurance.
Our nation's hospitals see every day that the absence of
health coverage is a significant barrier to care, reducing
the likelihood that people will get appropriate preventive,
diagnostic and chronic care. AHA supports your efforts to
help more low-income families to get the health care coverage
they need and deserve. We thank you for your leadership and
we look forward to working with you to advance the Family
Care Act of 2001.
Sincerely,
Rick Pollack,
Executive Vice President.
____
National Association of
Children's Hospitals,
Alexandria, VA, July 24, 2001.
Hon. Edward Kennedy,
Hon. Olympia Snowe,
U.S. Senate, Washington, DC.
Dear Senator Kennedy and Senator Snowe: On behalf of the
National Association of Children's Hospitals (N.A.C.H.),
which represents over 100 children's hospitals nationwide, I
want to express our strong support for your introduction of
the ``FamilyCare Act of 2001.''
As providers of care to all children, regardless of their
economic status, children's hospitals devote more than 40% of
their patient care to children who rely on Medicaid or are
uninsured, and more than three-fourths of their patient-care
to children with chronic and congenital conditions. These
hospitals have extensive experience in assisting families to
enroll eligible children in Medicaid and SCHIP. They are
keenly aware of the importance of addressing the challenges
that states face in enrolling this often hard to reach
population of eligible children.
In particular, N.A.C.H. appreciates your efforts to
simplify and coordinate the application process for SCHIP and
Medicaid, as well as to provide new tools for states to use
in identifying and enrolling families. We strongly support
your provision guaranteeing continuous 12-month eligibility
for children and parents, which will address one major
problem in assuring coverage for eligible children.
N.A.C.H. also applauds your provisions that continue
children's coverage as the first priority of the SCHIP
program, including (1) requiring states to first cover
children up to 200% of poverty and eliminating waiting lists
in the SCHIP program before covering parents, and (2)
requiring every child who loses coverage under Medicaid or
SCHIP to be automatically screened for other avenues of
eligibility and if found eligible, enrolled immediately in
that program.
N.A.C.H. further supports your legislation's provision to
give states additional flexibility under SCHIP and Medicaid
to cover legal immigrant children. In states with high
proportions of uninsured children, such as California, Texas
and Florida, the federal government's bar on coverage of
legal immigrant children helps contribute to
[[Page S8232]]
the fact that Hispanic children represent the highest rate of
uninsured children of all major racial and ethnic minority
groups. Your provision to ensure coverage of legal immigrant
children would be extremely useful in improving this
situation.
N.A.C.H. greatly appreciates your efforts to provide all
children with the best possible chance at starting out and
staying healthy. We welcome and look forward to working with
you to pass the ``FamilyCare Act of 2001.''
Sincerely,
Lawrence A. McAndrews,
President and CEO.
____
March of Dimes,
Washington, DC, July 24, 2001.
Hon. Edward Kennedy,
U.S. Senate, Washington, DC.
Dear Senator Kennedy: On behalf of more than 3 million
volunteers and 1600 staff members of the March of Dimes, I
want to commend you for introducing the ``Family Care Act of
2001.'' The March of Dimes is committed to increasing access
to appropriate and affordable health care for women, infants
and children and supports the targeted approach to expanding
the State Children's Health Insurance Program contained in
the Family Care proposal.
The ``Family Care Act of 2001'' contains a number of
beneficial provisions that would expand and improve SCHIP.
The March of Dimes strongly supports giving states the option
to cover low-income pregnant women in Medicaid and SCHIP
programs with an enhanced matching rate. We understand that
Family Care would allow states to cover uninsured parents of
children enrolled in Medicaid and SCHIP as well as uninsured
first-time pregnant women. SCHIP is the only major federally-
funded program that denies coverage to pregnant women while
providing coverage to their infants and children. We know
prenatal care improves birth outcomes. Expanding health
insurance coverage for low-income pregnant women has
bipartisan support in both the House and Senate.
The March of Dimes also supports Family Care provisions to
require automatic enrollment of children born to SCHIP
parents; automatic screening of every child who loses
coverage under Medicaid or SCHIP to determine eligibility for
other health programs; and distribution of information on the
availability of Medicaid and SCHIP through the school lunch
program. The March of Dimes also supports giving states the
option to provide Medicaid and SCHIP benefits to children and
pregnant women who arrived legally to the United States after
August 23, 1996, and to people ages 19 and 20. The National
Governors Association recently endorsed this proposal as part
of its legislation policy platform.
Finally, we commend you for raising issues such as the
elimination of assets tests in Medicaid and CHIP for parents
and children as well as providing for guaranteed continuous
12-month eligibility for parents and children enrolled in
Medicaid and CHIP. While controversial, we hope states would
voluntarily adopt these provisions which would provide the
kind of continuity that is so important for keeping families
insured.
We thank you for your leadership in introducing the
``Family Care Act of 2001'' and are eager to work with you to
achieve approval of this much needed legislation.
Sincerely,
Anna Eleanor Roosevelt,
Vice Chair, Board of Trustees; Chair, National Public
Affairs Committee.
Dr. Jennifer L. Howse,
President.
The Catholic Health Association,
Washington, DC, July 24, 2001.
Hon. Edward M. Kennedy,
Russell Senate Office Building,
U.S. Senate, Washington, DC.
Dear Senator Kennedy: On behalf of the Catholic Health
Association of the United States (CHA), the national
leadership organization of more than 2,000 Catholic
healthcare sponsors, systems, facilities, and related
organizations, I write to thank you for your efforts to
expand health coverage for uninsured low-income families. CHA
shares your commitment to the goal of accessible and
affordable care for all, and we strongly support the ``Family
Care Act of 2001'' as an important step toward that goal.
The ``Family Care Act of 2001'' would allow states to
extend Medicaid and State Children's Health Insurance Program
(SCHIP) coverage to parents of children already eligible for
these programs. Most of these individuals are working but do
not have incomes sufficient to afford the high cost of
private insurance. Family Care is a cost-effective way to
address this problem. Not only would it reduce the number of
uninsured parents but it would also improve enrollment of
uninsured low-income children in Medicaid and SCHIP at a time
when more than 10 million children still do not have health
coverage. While a number of states have already initiated
efforts to expand SCHIP to parents and to eliminate
enrollment barriers, much more needs to be done. Moreover,
the additional funding called for in your bill is essential
if states are to proceed with the assurance of federal
support for their coverage expansion efforts.
We are also pleased that your bill would address gaps in
Medicaid and SCHIP coverage for pregnant women and legal
immigrants.
Catholic hospitals and healthcare systems provide inpatient
and outpatient care in 48 states and more than 360 local
areas. Every day we see the impact that lack of health
insurance has on families' access to coordinated and high-
quality health care. With a substantial federal surplus,
Congress and the administration simply must make addressing
this problem a national priority. We applaud your leadership
in introducing the ``Family Care Act of 2001'' and look
forward to working with you and your colleagues to advance
this important bill.
Sincerely,
Rev. Michael D. Place, STD,
President and CEO.
____
Childrens Defense Fund,
Washington, DC, July 24, 2001.
Hon. Edward M. Kennedy,
U.S. Senate, Russell Senate Office Building,
Washington, DC.
Dear Senator Kennedy: We are taking this opportunity to
thank you for your work on the FamilyCare Act and your
intention to introduce the bill in the current Congress. This
proposal has the strong support of the Children's Defense
Fund because it provides and strengthens health care coverage
for uninsured children and their parents. Building on the
successes of Medicaid and the Children's Health Insurance
Program (CHIP), this legislation will increase coverage for
uninsured children, provide funding for health insurance
coverage for the uninsured parents of Medicaid and CHIP-
eligible children, and simplify the enrollment process for
Medicaid and CHIP to make the programs more family friendly.
We look forward to working with you for passage of the
FamilyCare Act by the Congress.
Sincerely,
Gregg, Haifley,
Deputy Director Health Division.
______
By Mr. KENNEDY:
S. 1247. A bill to establish a grant program to promote emotional and
social development and school readiness; to the Committee on Health,
Education, Labor, and Pensions.
Mr. KENNEDY. Mr. President, I am proud to introduce the Foundations
for Learning Act. I want to thank my son, Patrick for his leadership in
developing this legislation. This bill is an extremely important piece
of legislation that addresses the whole child's early development.
There is no question that healthy emotional and social development
are critical to school success. The development of curiosity, self-
direction, the ability to cooperate with peers and to exhibit self-
control are essential before a child can be ready to learn. Children
whose lives are threatened by socioeconomic disadvantage, violence,
family disruption and diagnosed disabilities are at a severe
disadvantage in the classroom. There is no question these children
cannot perform at their highest academic potential.
While we are all concerned about reading readiness and children's
readiness to learn, we cannot ignore the underlying factors that enable
them to learn. We know that children cannot learn when they are hungry
or sleepy, but rarely do we stop to think about their emotional ability
to learn. Children who are angry, afraid or cannot control their own
emotions, or have no sense of self-direction, and ability to resolve
conflicts with peers are not ready to learn either.
Last month, a national study reported that children who receive more
than 30 hours per week of non-parental child care exhibit higher levels
of aggressive behavior than those who spend less than 10 hours per week
in comparable settings. The study called national attention to the
quality of child care that parents entrust the care of their young
children to. It also rekindled the Nation's interest in the early years
and how these years contribute to a young children's development. As we
debate investments in early care and education, we must not
underestimate the need to look at the social and emotional readiness of
the child that leads to later academic readiness.
Studies are showing that increasing numbers of children are
unprepared to cope with the demand of school, not because they lack the
academic tools, but because they lack the social skills and emotional
self-regulation necessary to succeed. In a survey of kindergarten
teachers, 46 percent said that at least half of their class had
difficulty following directions, 34 percent reported half of the class
or more had difficulty working as part of a group, and 20 percent said
at least half of the class had
[[Page S8233]]
problems with social skills. Is it a surprise that children who cannot
follow simple directions and get along with their peers cannot learn to
read?
According to the latest data, 61 percent of children under age 4 are
in regularly scheduled child care. With such a high percentage of our
youngest children in child care and with such certainty as we have that
early care and education has a long-lasting if not permanent impact on
an individual's social and academic development, we cannot deny the
necessity of ensuring that those providers are equipped to work with
all of our children including those with emotional and behavioral
problems.
Neither can we deny that the most important relationship in a child's
life is the one with his or her parents. It is absolutely essential to
the child's future success that the parent-child relationship be as
healthy as possible. Without a close, dependable relationship with a
healthy and responsible adult, a child's potential for growth could be
severely and permanently impaired. We must provide high quality
education and support not only for children but also for their parents.
The goal of this legislation is to enable all children to enter
school ready to learn by focusing on the social and emotional
development of children ages 0-5. The bill would accomplish this by:
providing family support initiatives such as parent training and home
visitation to provide intensive early interventions to families of at-
risk children; providing consultations and professional development
opportunities for child care workers and hiring of behavioral
specialists by early childhood service providers and the development of
curriculum for use in early childhood settings; providing early
intervention services to at-risk children to promote their emotional
and social development; and by developing community resources and
linkages between early childhood service providers to enhance the
quality of services to children.
This bill will help communities lay the foundation for school
readiness by providing funding to integrate emotional and social
development support services into early childhood programs and
strengthening the capacity of parents to constructively manage behavior
problems.
Study after study had shown that intervention can work to increase
the quality of early care and educational experiences that children
receive. Study after study has shown that financial resources are
essential to improving quality of early care and education. Study after
study has shown that investments in young children can save costs of
adolescents' incarceration tomorrow. Investing in young children is
well worth the investment. If we're serious about adequately preparing
our children for school and for life, we must provide communities,
families, child care providers with the necessary resources to support
the development of a healthy whole child.
I hope that my colleagues will join me in supporting and pushing this
important legislation.
______
By Mr. KERRY (for himself, Mr. Chafee, Mr. Reed, Mr. Jeffords,
Mr. Sarbanes, Mr. Leahy, Mr. Wellstone, Mr. Dayton, Mrs.
Feinstein, Mr. Levin, Mr. Schumer, Mr. Durbin, Ms. Stabenow,
Mrs. Boxer, Mr. Kennedy, Mr. Corzine, and Mr. Dodd):
S. 1248. A bill to establish a National Housing Trust Fund in the
Treasury of the United States to provide for the development of decent,
safe, and affordable, housing for low-income families, and for other
purposes; to the Committee on Banking, Housing, and Urban Affairs.
Mr. KERRY. Mr. President, our Nation is facing an affordable housing
crisis. Recent changes in the housing market have limited the
availability of affordable housing across the country while the growth
in our economy in the last decade has dramatically increased the cost
of housing that remains. That is why, along with sixteen cosponsors, I
am proposing to address the severe shortage of affordable housing by
introducing legislation that will establish a National Affordable
Housing Trust Fund.
The Affordable Housing Trust Fund that is established in this
legislation would create an affordable housing production program,
ensuring that new rental units are built for those who most need
assistance extremely low-income families, including working families.
The goal is to create long-term affordable, mixed-income developments
in areas with the greatest opportunities for low-income families.
Seventy-five percent of Trust Fund assistance will be given out, based
on need, through matching grants to states. The States will allocate
funds on a competitive basis to projects that meet Federal
requirements, such as mixed-income projects and long-term
affordability, and to address local needs. The remainder of the funding
will be competitively awarded by the Department of Housing and Urban
Development, HUD, to intermediaries such as the Enterprise Foundation,
which will be required to leverage private funds. A portion of the
Trust Fund will be used to promote home ownership activities for low-
income Americans.
Funding for the Trust Fund would be drawn from excess revenue
generated by the Federal Housing Administration and Government National
Mortgage Administration beyond the amounts necessary to ensure their
safety and soundness. These Federal housing programs generate billions
of dollars in excess income, which currently go to the general Treasury
for use on other Federal priorities. It is time to stop taking housing
money out of housing programs. These excess funds should be used to
help alleviate the current housing crisis. According to current
projections, approximately $5.7 billion will be available for the Trust
Fund in the first year and $2 billion will be available each year
thereafter.
The need for affordable housing is great. While many Americans have
benefitted from the growing economy over the past decade, it has also
fueled a dramatic increase in the cost of housing. Many working
families have been unable to keep up with these increases. HUD
estimates that more than five million American households have what is
considered ``worst case'' housing needs. Many of these families are
spending more than half their income for housing or are living in
severely substandard housing. Since 1990, the number of families who
have ``worst case'' housing needs has increased by 12 percent, that's
600,000 more American families that cannot afford a decent and safe
place to live. Recent growth in our economy also has squeezed many
working families out of tight housing markets across the country. On
average, a person needs to earn more than $11 per hour just to afford
the median rent on a two-bedroom apartment in the United States. There
is not one metropolitan area in the country where a minimum wage earner
can afford to pay the rent for a two-bedroom apartment. This hourly
figure is dramatically higher in many metropolitan areas, an hourly
wage of $22 is needed in San Francisco; $21 on Long Island; $17 in
Boston; $16 in the D.C. area; $14 in Seattle and Chicago; and, $13 in
Atlanta.
Mikala Bembery is a single mother with two boys who now lives in
Framingham, MA. Her family's housing story is not unique for many low-
and moderate income families in Massachusetts and across the nation. In
1995, Mikala lost her full-time job and could not make the rent on the
fair market apartment in which she and her children lived. While
she quickly got a part-time job, for the next two years, the Bembery
family was forced to live with friends or in rooming houses because
they did not initially qualify for either a shelter or a Federal
Section 8 subsidy. Finally, after appealing HUD's decision and months
of delay, Mikala was given a Section 8 voucher for her family. You
would think that obtaining a Section 8 voucher would allow the Bembery
family to find affordable housing. However, because there is a dramatic
shortage of affordable housing in Massachusetts, it took several months
of searching to find a new apartment for her family. Every available
apartment was viewed by hundreds of people and landlords were able to
pick and choose whom they wanted. Because of Mikala's strong work
history, she and her family were finally able to move into a new
apartment two years after she lost her full time job. Although, Mikala
kept working and her children stayed in school throughout their ordeal,
this family is still struggling to rebuild their lives.
[[Page S8234]]
Working families in this country are increasingly finding themselves
unable to afford housing. A person trying to live in Boston would have
to make more than $35,000, annually, just to afford a 2-bedroom
apartment. This means teachers, janitors, social workers, police
officers and other full time workers may have trouble affording even a
modest 2-bedroom apartment.
At the same time, there has been a tremendous decline in the
available stock of affordable housing. Between 1993 and 1995, there was
a 900,000 decline in the number of affordable rental units available to
very low-income families. From 1996 to 1998, there was another 19
percent decline in the number of affordable housing units. This
amounted to a dramatic reduction of 1.3 million affordable housing
units available to low-income Americans. Making matters worse, many
current affordable housing providers are deciding to opt-out of their
Section 8 contracts or are prepaying their HUD-insured mortgages. These
decisions have limited further the availability of affordable housing
across the country. Many more providers will be able to opt-out of
their Section 8 contracts in the next few years, further limiting the
availability of affordable housing in our nation. This decline has
already forced many working families eligible for Section 8 vouchers in
Boston, Massachusetts to live outside the City there is no affordable
housing available.
The loss of affordable housing has exacerbated the housing crisis in
this country, and the Federal Government must take action. We have the
resources, yet we are not devoting these resources to fix the problem.
Despite the fact that more families are unable to afford housing, we
have decreased federal spending on critical housing programs over time.
Between 1978 and 1995, the number of households receiving housing
assistance was increased by almost three million. From 1978 through
1984, we provided an additional 230,000 families with housing
assistance each year. This number dropped significantly to 126,000
additional households each year from 1985 through 1995.
In 1996, this Nation's housing policy went all the way back to square
one--not only was there no increase in families receiving housing
assistance, but the number of assisted units actually decreased. From
1996 to 1998, the number of HUD assisted households dropped by 51,000.
During this time of rising rents, increased housing costs, and the
loss of affordable housing units, it is incomprehensible that we are
not doing more to increase the amount of housing assistance available
to working families. Unfortunately, President Bush and Republicans in
the Congress have again failed to assist working families in obtaining
decent affordable housing. From fiscal year 1995 to fiscal year 1999,
Republicans in control of the Congress diverted or rescinded more than
$20 billion from federal housing programs for other uses.
This year, many Republicans in the Congress and the Bush
Administration have supported more than $2 billion in additional cuts
for the Department of Housing and Urban Development budget. These cuts
include terminating the Drug Elimination Program, reducing funding for
the Community Development Block Grant, and funds incremental Section 8
vouchers for 53,500 fewer families. Thankfully, under the leadership of
the Democrats in the Senate and Chairman Barbara Mikulski, the worst of
these cuts have been restored in the Senate FY 2002 VA-HUD and
Independent Agencies Appropriations bill. Nevertheless, we still have
much more work to do. The Commonwealth of Massachusetts is expected to
receive a reduction in federal assistance at a time when my State has
the greatest need. The future is even bleaker. These reductions at HUD
follow the enactment of a tax plan that will make it almost impossible
for any significant increases in the HUD's budget over the next decade.
We need to bring housing resources back up to where they belong and the
National Affordable Housing Trust Fund will provide desperately needed
funds to begin production of affordable housing in the United States.
Enacting the Housing Trust Fund legislation is an important step in the
right direction to add resources to housing and to help begin producing
housing again.
We can no longer ignore the lack of affordable housing, and the
impact it is having on families and children around the country. It is
not clear to me why this lack of housing has not caused more uproar.
How many families need to be pushed out of their homes and into the
streets, before action is taken. I believe it is time for our Nation to
take a new path, one that ensures that every American, especially our
children, has the opportunity to live in decent and safe housing.
Everyone knows that decent housing, along with neighborhood and living
environment, play enormous roles in shaping young lives. Federal
housing assistance, has benefitted millions of low-income children
across the nation and has helped in developing stable home
environments. However, too many children currently live in families
that have substandard housing or are homeless. These children are less
likely to do well in school and less likely to be productive citizens.
Because of the positive affect that this legislation would have on
America's children, the Trust Fund was included in the Act to Leave No
Child Behind, a comprehensive proposal by the Children's Defense Fund
to assist in the development of our Nation's children.
I also believe that our Nation deserves a program that would assist
in maintaining the affordable housing stock that already exists. I am
working with Senator James Jeffords in developing legislation to help
preserve our affordable housing stock. It is my hope that this
legislation will be taken up and passed this Congress so that we can
avoid losing any more affordable units. However, we must also focus on
producing additional housing, which is exactly what this Housing Trust
Fund will do.
I urge you to support this legislation which restores our commitment
to providing affordable housing for all families. We can no longer turn
our backs on those families who struggle every day just to put a roof
over their heads.
Mr. LEAHY. Mr. President, I rise today in support of the National
Affordable Housing Trust Fund Act of 2001. This is an important piece
of legislation that will help address the lack of affordable housing
available in our Nation today.
For far too long we have neglected our Nation's stock of affordable
housing, allowing too many properties to fall by the wayside. Between
1995 to 1997 the nation lost 370,000 affordable rental units, nearly 5
percent of the housing available to low-income families. These homes
were lost to deterioration, demolition, or simply because landlords
opted out of Federal programs in order to secure more lucrative rents.
Unfortunately these units were not replaced at a pace adequate enough
to address the need. Our most vulnerable populations, the low-income,
the elderly, and working families, have been left with the difficult
task of finding an apartment or a house that they can afford. Roughly
five million households in the United States have ``worst case''
housing needs. These families are spending over 50 percent of their
incomes on rent alone, leaving precious little to put groceries on the
table, gas in their cars, or buy clothes for their kids.
In my home State of Vermont, the situation is no different.
Production of new housing has stalled, prices for rental units have
dramatically increased, and rental vacancy rates are at an all time
low. The competition for housing, any housing at all, is so great that
many low and middle-income families must stay in hotels, school dorms,
and homeless shelters until they can find a permanent place. This
results in a huge personal and emotional loss to the families and
drives up the needs for additional State and Federal social services
dollars to help these people in their time of crisis.
For those fortunate enough to find an apartment available for rent,
few are able to afford the rent that the market demands. It is
estimated that the average person would have to earn over $11 dollars
per hour to afford a two bedroom apartment at the Fair Market Rent.
While Vermont has a dedicated community of State officials, no profit
organizations, advocates and affordable housing developers working to
ensure
[[Page S8235]]
the housing needs of our State's population are met, the resources are
simply not available to construct the number of units necessary to
alleviate the problem. As a result the number of homeless families in
the state are rising.
In Chittenden County, Vermont's most populous region, the number of
families seeking services from homeless shelters has risen 400 percent
in three years, over half of these families are working families,
unable to afford a place to live even while holding down a job. This is
a trend we see spreading throughout the state. We cannot allow this to
continue.
The creation of a National Affordable Housing Trust Fund will go a
long way to help address this situation. By harnessing revenues
generated by other Federal housing programs, States, communities and
non-profit organizations, will be able to leverage local funds for new
housing construction in the most needy areas.
I cannot think of a time in recent history when it has been more
important to reaffirm the federal government's commitment to the
housing needs of this country, and I am proud to rise as a cosponsor of
this bill. There is a long road ahead of us in our endeavor to create a
National Affordable Housing Trust Fund, and I look forward to working
with my colleagues to ensure that the final product is fair and
equitable to all regions of the country, including rural and small
states.
I urge my colleagues to join me in support of this legislation.
______
By Mr. WELLSTONE (for himself, Mrs. Murray, Mr. Schumer, Mr.
Dodd, Mr. Dayton, Mrs. Clinton, and Mr. Inouye):
S. 1249. A bill to promote the economic security and safety of
victims of domestic and sexual violence, and for other purposes; to the
Committee on Finance.
Mr. WELLSTONE. Mr. President, along with my colleagues, Senators
Murray, Schumer, Dodd, Dayton, Clinton and Inouye, I am introducing
legislation that if adopted would have a most profound and even life-
saving effect on people who are victims of domestic and sexual violence
and their families. It is called the Victims' Economic Security and
Safety Act. Similar to the Battered Women's Economic Security and
Safety Act, which I introduced last session, the legislation
acknowledges that the impact of domestic and sexual violence extends
far beyond the moment the abuse occurs. It strikes at the heart of
victims' and their families' economic self sufficiency. As a result,
many victims are unable to provide for their own or their children's
safety. Too often they are forced to choose between protecting
themselves from abuse and keeping a roof over their head. This is a
choice that no mother should have to make. Nor should any person face
the double tragedy of first being abused and then losing a job, health
insurance or any other means of self sufficiency because they were
abused.
In response to this cycle of violence and dependence, and in response
to domestic and sexual violence's devastating impact on a victim's
financial independence, this legislation would help to ensure the
economic security of victims of domestic violence, sexual assault and
stalking so they are better able to provide permanent safety for
themselves and their children and so they are not forced, because of
economic dependence, to stay in an abusive relationship. In the fight
against violence against women, and after the passage of the Violence
Against Women Act of 2000, this legislation is a next, critical step.
The link between poverty and domestic and sexual abuse is clear. For
example, according to the United States Conference of Mayors, domestic
violence is the fourth leading cause of homelessness. A 2000 study
conducted by the Manpower Research and Development Corporation of
Minnesota's welfare program, the Minnesota Family Investment Program,
showed that 49 percent of single-parent long term recipients were in
abusive relationships while they were receiving or had recently been
receiving MFIP benefits. A 1998 GAO study found that when compared with
women who report never experiencing abuse, women who report having been
abused experience more spells of unemployment; greater job turnover;
and significantly higher rates of receipt of welfare, Medicaid and food
stamps.
Economic dependence is a clear reason people who are in abusive
relationships may return to abusers or even may not be able to leave
abusive situations in the first place. Abusers will go to great lengths
to sabotage their partner's ability to have a job or get an education
so that their partners will remain dependent on them. If we want
battered women and victims of sexual violence to be able to escape the
dangerous, often life-threatening situations in which they are trapped,
they need the economic means to do so. Yet, victims of domestic and
sexual violence face very serious challenges to self-sufficiency every
day.
Multiple studies of domestic violence victims who were working while
being abused found that as many as 60 percent of respondents said they
had been reprimanded at work for behaviors related to the abuse, such
as being late to work, and as many as 52 percent said they had lost
their jobs because of the abuse. Almost 50 percent of sexual assault
survivors reported they had lost their jobs or were forced to quit in
the aftermath of the assaults. A study from the National WorkPlace
Resource Center on Domestic Violence found that abusive husbands and
partners harass 74 percent of employed battered women at work.
The effects of this are felt not only by the victims of such abuse
and their families, but also by employers and the nation as a whole.
From the perspective of employers, a 1999 CNN report found that 37
percent of domestic violence victims said that domestic violence
impacted their ability to do their job and 24 percent said it caused
them to be late from work. A survey of employers confirmed this--49
percent of corporate executives said that domestic violence harmed
their company's productivity. The Bureau of National Affairs has
estimated that domestic violence costs employers between $3 billion and
$5 billion in lost time and productivity each year. Ninety-four percent
of corporate security and safety directors at companies nationwide rank
domestic violence as a high security concern, and homicide continues to
be the leading cause of death of women in the workplace. The United
States Department of Labor, in 2000 reported that Domestic Violence
accounted for 27 percent of all incidents of workplace violence.
More generally, prior to 1994, the Congress gathered years of
testimony and evidence as to the negative impact of gender violence in
the national economy and found that gender violence costs the economy
$10 billion per year.
Victims need to be able to deal with these problems without fear of
being fired and without fear of losing their livelihoods and their
children's livelihoods. Corporations, too, need to be able to ensure
their employee's safety and productivity. That is the goal of this
legislation. VESSA would help break down the economic barriers that
prevent victims from leaving their batterer or abuser, protect victims
from violence in the workplace and mitigate the negative economic
effects of violence on employers and on the national economy.
The bill would provide emergency leave for employees who need to
address the effects of domestic and sexual assault. That way, if a
victim had to go to court to get a restraining order or leave work to
find shelter, the victim could take limited leave without facing the
prospect of being fired, demoted or financially penalized.
The bill would also extend unemployment compensation to people who
are forced to leave their job to provide for their safety or their
children's safety. As mentioned above, homicide is the leading cause of
death for women in the workplace, 15 percent of these deaths are due to
domestic violence, 11 percent of all rapes occur at the workplace.
These grim statistics do not begin to address the many women that are
physically injured or otherwise harassed at work each day. Often, the
only way to escape that kind of brutal stalking is for a victim to
leave her job so she can relocate to a safer place. In circumstances in
which a victim is forced to leave a job to ensure her own safety,
unemployment compensation should be available to her, so that she does
not have to make the terrible choice of risking her safety to ensure
her livelihood.
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Further, VESSA would prohibit discrimination in employment against
victims because of domestic and sexual assault. Victims should not be
fired or passed over for promotions for reasons beyond their control.
Maintaining a victim's dependence is the insidious goal of an abuser.
The abuser must never be rewarded for his crime and a victim should
never face severe punishment because of being abused.
The bill would also prohibit insurance providers from discriminating
against such victims because of a history of domestic and sexual
assault. Such discrimination only forces people to lie about their
victimization and avoid medical treatment until it is too late. It
punishes victims for a perpetrator's crime.
Finally, the bill recognizes the positive role that companies can
play in helping victims of domestic and sexual violence at the same
time that they can increase their own productivity. It would provide a
tax credit to businesses that implement workplace safety and education
programs to combat violence against women.
For women attempting to escape a violent environment, this
legislation could be a lifeline. I urge that all my colleagues support
it so that we can help ensure that no more women are forced to trade
their family's personal safety for their economic livelihood. I urge
that my colleagues support it so that no more women have to face the
double violation of first being assaulted and second losing their job
or their self-sufficiency because of it. In what seems to many like a
hopeless situation, we can take very strong actions to improve the
safety and the lives of the millions of victims of domestic and sexual
violence. The cycle too many people face can end. Today we have the
opportunity not just to help victims escape violence, but also to
provide for so many people a light at the end of a very dark tunnel.
Today we can give victims hope that they will not only survive, but
that they will be able to maintain or regain their independence and
have a safe, happy and productive future. I urge my colleagues to join
me in support of this bill and to cosponsor this bill.
Mrs. MURRAY. Mr. President, I am proud to join with my colleagues,
Senators Wellstone and Schumer, to introduce the Victims Economic
Safety and Security Act, VESSA. VESSA will help our country take the
next step forward to protest victims of domestic violence. In 1994, our
country took a dramatic step forward by passing the historic Violence
Against Women Act, VAWA. This landmark legislation brought together
social service providers, victim advocates, law enforcement, and the
courts to respond to the immediate threat of violence. VAWA has been a
success in meeting the immediate challenges. But there is still work to
be done.
Between 1993 and 1998 the average annual number of physical attacks
on intimate partners was 1,082,110. Eighty-seven percent of these were
committed against women. According to recent government estimates, more
than 900,000 women are raped every year in the United States. Women who
are victims of abuse are especially vulnerable to changes in
employment, pay, and benefits. Because of these factors they need legal
protection.
Today, it's time to take the next step. Our bill will protect victims
who are forced to flee their jobs. Today a woman can receive
unemployment compensation if she leaves her job because her husband
must relocate. But if that same woman must leave her job because she's
fleeing abuse, she can't receive unemployment compensation. That's
wrong, and our bill will protect those victims.
Our bill will also protect victims by allowing them unpaid time to
get the help they need. Today, a woman can use the Family Medical Leave
Act, FMLA, to care for a sick or injured spouse. But a woman cannot use
FMLA leave to go to court to stop abuse. Our bill will correct these
fatal flaws.
Finally, our bill will protect victims of domestic violence from
insurance discrimination. Insurance companies have classified domestic
violence as a high risk behavior. That punishes women who are victims.
Once again, women must sacrifice their economic safety net if they
choose to come forward and seek help from violence. Title IV of VESSA
would prohibit discrimination in all lines of insurance against victims
of domestic violence, stalking and sexual assault.
I am proud of the guidance we've received from advocates in crafting
this legislation. I want to thank them for their efforts and their
commitment to breaking the cycle of violence. I want to particularly
acknowledge the efforts of the advocates in Washington State who have
provided invaluable input in drafting this legislation. Without the
grassroots support for our communities, we couldn't have passed VAWA in
the first place. Their support and leadership will help us take this
critical next step in passing VESSA.
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