[Congressional Record Volume 147, Number 170 (Monday, December 10, 2001)]
[Senate]
[Pages S12772-S12778]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DOMENICI:
S. 1791. A bill to amend the Internal Revenue Code of 1986 to provide
for economic security and recovery, and for other purposes; to the
Committee on finance.
Mr. DOMENICI. Madam President, the economy remains weak and the
unemployment rate released last Friday for the month of November topped
5.7 percent. This is the highest level in over 6 years, and many
economists expect it to exceed 6 percent in the coming months.
Recently the economy officially was put in the category of
``recession'' beginning last March by the National Bureau of Economic
Research.
The economy measured by its gross national product, declined at a 1.1
percent rate in the third quarter of this year.
Corporate profits are down nearly 22 percent compared to last year,
and consumer confidence is down 51 points in three months, the steepest
drop since 1980.
While there are a couple of ``not so bad'' economic factors out
there, low consumer prices, low interest rates, low oil prices for
consumers, and record high auto sales, these all could be temporary
phenomena related to a broader weak economy and low consumer demand.
For all these reasons, I believe Congress needs to act on a stimulus
bill before it adjourns this first session of the 107th congress.
The American public deserves action on a stimulus bill and we need to
act quickly. Too much time has passed and we cannot let politics as
usual keep us from putting together a bill that can achieve wide
bipartisan support quickly.
I have come to the conclusion that we should adopt a bill that is not
controversial, politically speaking, and that can actually do some good
for the American economy in a short time period.
I therefore am introducing today a bill that does three very simple
things that I think we can all agree on:
First, a one-month payroll tax holiday, that will provide relief from
the regressive payroll tax. It would eliminate the need for both
employers and employees to pay the current 12.4 percent tax.
I have found wide bipartisan support for this proposal. Unfortunately
it is
[[Page S12773]]
probably too late now to implement it successfully in the month of
December but I still believe it can be enacted in time to provide real
relief in the first month of 2002.
This proposal will provide nearly $40 billion in immediate, temporary
tax relief to working Americans and businesses, and to State and local
governments that must pay the tax also.
Second, expand the safety net for working Americans by extending
unemployment insurance for 13 weeks, and providing nearly 300,000 part
time workers eligibility for unemployment insurance benefits and
adjusting the ``base period'' for determining eligibility. These latter
two changes were recommended by a blue ribbon commission charged with
making recommendations for reforming the UI program.
In total the changes I am recommending would increase the cost of the
program by about $9 billion this year, and only $12 billion over the
next decade.
Finally, the bill I am proposing today would provide for an
enhancement of expensing for capital purchases, a 20 percent bonus for
depreciation with a 3 year sunset. The tax benefit to businesses for
new capital purchases would be nearly $26 billion this year, and $12
billion over the next decade.
In total, these three provisions, packaged together to provide quick
and affordable economic stimulus, would not exceed $73 billion this
year and less than $62 billion over the next decade.
Like so many on my side I wish we could do more in the way of
speeding up the marginal tax rate cuts we enacted last spring, but it
is clear that that can not pass the political test of other side.
Some on the other side want to have a major expansion of health care
benefits in any stimulus package, but it should be clear now that that
will not pass the political test on this side of the aisle.
For these reasons, I believe with time running short, this is the
best possible package that we can put together that will win wide
bipartisan support in the shortest amount of time and I encourage those
directly involved in the, what appears to be faltering negotiations on
a stimulus bill, to look at this package as a solution to acting
quickly.
I submit the bill to the desk for referral and I ask unanimous
consent that the bill and a table outlining the proposal be printed in
the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1791
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Economic
Security and Recovery Act of 2001''.
(b) References to Internal Revenue Code of 1986.--Except as
otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to,
or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--
Sec. 1. Short title; etc.
TITLE I--BUSINESS PROVISIONS
Sec. 101. Special depreciation allowance for certain property acquired
after September 10, 2001, and before September 11, 2004.
TITLE II--PAYROLL TAX HOLIDAY
Sec. 201. Payroll tax holiday.
TITLE III--TEMPORARY EMERGENCY UNEMPLOYMENT COMPENSATION
Sec. 301. Federal-State agreements.
Sec. 302. Temporary emergency unemployment compensation account.
Sec. 303. Payments to States having agreements for the payment of
temporary emergency unemployment compensation.
Sec. 304. Financing provisions.
Sec. 305. Fraud and overpayments.
Sec. 306. Definitions.
Sec. 307. Applicability.
TITLE I--BUSINESS PROVISIONS
SEC. 101. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN PROPERTY
ACQUIRED AFTER SEPTEMBER 10, 2001, AND BEFORE
SEPTEMBER 11, 2004.
(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following new subsection:
``(k) Special Allowance for Certain Property Acquired After
September 10, 2001, and Before September 11, 2004.--
``(1) Additional allowance.--In the case of any qualified
property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 20 percent of the
adjusted basis of the qualified property, and
``(B) the adjusted basis of the qualified property shall be
reduced by the amount of such deduction before computing the
amount otherwise allowable as a depreciation deduction under
this chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified property.--For purposes of this
subsection--
``(A) In general.--The term `qualified property' means
property--
``(i)(I) to which this section applies which has a recovery
period of 20 years or less or which is water utility
property, or
``(II) which is computer software (as defined in section
167(f)(1)(B)) for which a deduction is allowable under
section 167(a) without regard to this subsection,
``(ii) the original use of which commences with the
taxpayer after September 10, 2001,
``(iii) which is--
``(I) acquired by the taxpayer after September 10, 2001,
and before September 11, 2004, but only if no written binding
contract for the acquisition was in effect before September
11, 2001, or
``(II) acquired by the taxpayer pursuant to a written
binding contract which was entered into after September 10,
2001, and before September 11, 2004, and
``(iv) which is placed in service by the taxpayer before
January 1, 2005.
``(B) Exceptions.--
``(i) Alternative depreciation property.--The term
`qualified property' shall not include any property to which
the alternative depreciation system under subsection (g)
applies, determined--
``(I) without regard to paragraph (7) of subsection (g)
(relating to election to have system apply), and
``(II) after application of section 280F(b) (relating to
listed property with limited business use).
``(ii) Election out.--If a taxpayer makes an election under
this clause with respect to any class of property for any
taxable year, this subsection shall not apply to all property
in such class placed in service during such taxable year.
``(iii) Repaired or reconstructed property.--Except as
otherwise provided in regulations, the term `qualified
property' shall not include any repaired or reconstructed
property.
``(iv) Qualified leasehold improvement property.--The term
`qualified property' shall not include any qualified
leasehold improvement property (as defined in section
168(e)(6)).
``(C) Special rules relating to original use.--
``(i) Self-constructed property.--In the case of a taxpayer
manufacturing, constructing, or producing property for the
taxpayer's own use, the requirements of clause (iii) of
subparagraph (A) shall be treated as met if the taxpayer
begins manufacturing, constructing, or producing the property
after September 10, 2001, and before September 11, 2004.
``(ii) Sale-leasebacks.--For purposes of subparagraph
(A)(ii), if property--
``(I) is originally placed in service after September 10,
2001, by a person, and
``(II) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,
such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in subclause (II).
``(D) Coordination with section 280f.--For purposes of
section 280F--
``(i) Automobiles.--In the case of a passenger automobile
(as defined in section 280F(d)(5)) which is qualified
property, the Secretary shall increase the limitation under
section 280F(a)(1)(A)(i) by $4,600.
``(ii) Listed property.--The deduction allowable under
paragraph (1) shall be taken into account in computing any
recapture amount under section 280F(b)(2).''
(b) Allowance Against Alternative Minimum Tax.--
(1) In general.--Section 56(a)(1)(A) (relating to
depreciation adjustment for alternative minimum tax) is
amended by adding at the end the following new clause:
``(iii) Additional allowance for certain property acquired
after september 10, 2001, and before september 11, 2004.--The
deduction under section 168(k) shall be allowed.''
(2) Conforming amendment.--Clause (i) of section
56(a)(1)(A) is amended by striking ``clause (ii)'' both
places it appears and inserting ``clauses (ii) and (iii)''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after September 10,
2001, in taxable years ending after such date.
TITLE II--PAYROLL TAX HOLIDAY
SEC. 201. PAYROLL TAX HOLIDAY.
(a) In General.--Notwithstanding any other provision of
law, the rate of tax with respect to remuneration received
during the payroll tax holiday period shall be zero under
sections 1401(a), 3101(a), and 3111(a) of the Internal
Revenue Code of 1986 and for purposes of determining the
applicable percentage under section 3201(a), 3211(a)(1), and
3221(a) of such Code.
(b) Payroll Tax Holiday Period.--The term ``payroll tax
holiday period'' means the period beginning after November
30, 2001, and ending before January 1, 2002.
[[Page S12774]]
(c) Employer Notification.--The Secretary of the Treasury
shall notify employers of the payroll tax holiday period in
any manner the Secretary deems appropriate.
(d) Transfer of Funds.--The Secretary of the Treasury shall
transfer from the general revenues of the Federal Government
an amount sufficient so as to ensure that the income and
balances of the trust funds under section 201 of the Social
Security Act and the Social Security Equivalent Benefit
Account under section 15A of the Railroad Retirement Act of
1974 (45 U.S.C. 231n-1) are not reduced as a result of the
application of subsection (a).
(e) Determination of Benefits.--In making any determination
of benefits under title II of the Social Security Act, the
Commissioner of Social Security shall disregard the effect of
the payroll tax holiday period on any individual's earnings
record.
TITLE III--TEMPORARY EMERGENCY UNEMPLOYMENT BENEFITS
SEC. 301. FEDERAL-STATE AGREEMENTS.
(a) In General.--Any State which desires to do so may enter
into and participate in an agreement under this title with
the Secretary of Labor (in this title referred to as the
``Secretary''). Any State which is a party to an agreement
under this title may, upon providing 30 days written notice
to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--
(1) In general.--Any agreement under subsection (a) shall
provide that the State agency of the State will make--
(A) payments of regular compensation to individuals in
amounts and to the extent that such payments would be
determined if the State law were applied with the
modifications described in paragraph (2); and
(B) payments of temporary emergency unemployment
compensation to individuals who--
(i) have exhausted all rights to regular compensation under
the State law;
(ii) do not, with respect to a week, have any rights to
compensation (excluding extended compensation) under the
State law of any other State (whether one that has entered
into an agreement under this title or otherwise) nor
compensation under any other Federal law (other than under
the Federal-State Extended Unemployment Compensation Act of
1970 (26 U.S.C. 3304 note)), and are not paid or entitled to
be paid any additional compensation under any Federal or
State law; and
(iii) are not receiving compensation with respect to such
week under the unemployment compensation law of Canada.
(2) Modifications described.--The modifications described
in this paragraph are as follows:
(A) Alternative base period.--An individual shall be
eligible for regular compensation if the individual would be
so eligible, determined by applying--
(i) the base period that would otherwise apply under the
State law if this title had not been enacted; or
(ii) a base period ending at the close of the calendar
quarter most recently completed before the date of the
individual's application for benefits, provided that wage
data for that quarter has been reported to the State;
whichever results in the greater amount.
(B) Part-time employment.--An individual shall not be
denied regular compensation under the State law's provisions
relating to availability for work, active search for work, or
refusal to accept work, solely by virtue of the fact that
such individual is seeking, or is available for, only part-
time (and not full-time) work, if--
(i) the individual's employment on which eligibility for
the regular compensation is based was part-time employment;
or
(ii) the individual can show good cause for seeking, or
being available for, only part-time (and not full-time) work.
(c) Coordination Rules.--
(1) Regular compensation payable under a federal law.--The
modifications described in subsection (b)(2) shall also apply
in determining the amount of benefits payable under any
Federal law to the extent that those benefits are determined
by reference to regular compensation payable under the State
law of the State involved.
(2) TEUC to serve as second-tier benefits.--Notwithstanding
any other provision of law, extended benefits shall not be
payable to any individual for any week for which temporary
emergency unemployment compensation is payable to such
individual.
(d) Exhaustion of Benefits.--For purposes of subsection
(b)(1)(B)(i), an individual shall be considered to have
exhausted such individual's rights to regular compensation
under a State law when--
(1) no payments of regular compensation can be made under
such law because such individual has received all regular
compensation available to such individual based on employment
or wages during such individual's base period; or
(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
(e) Weekly Benefit Amount.--For purposes of any agreement
under this title--
(1) the amount of temporary emergency unemployment
compensation which shall be payable to an individual for any
week of total unemployment shall be equal to the amount of
regular compensation (including dependents' allowances)
payable to such individual under the State law for a week for
total unemployment during such individual's benefit year;
(2) the terms and conditions of the State law which apply
to claims for extended compensation and to the payment
thereof shall apply to claims for temporary emergency
unemployment compensation and the payment thereof, except
where inconsistent with the provisions of this title or with
the regulations or operating instructions of the Secretary
promulgated to carry out this title; and
(3) the maximum amount of temporary emergency unemployment
compensation payable to any individual for whom a temporary
emergency unemployment compensation account is established
under section 302 shall not exceed the amount established in
such account for such individual.
(e) Election by States.--Notwithstanding any other
provision of Federal law (and if State law permits), the
Governor of a State is authorized and may elect to trigger
off an extended compensation period in order to provide
payment of temporary emergency unemployment compensation to
individuals who have exhausted their rights to regular
compensation under State law.
SEC. 302. TEMPORARY EMERGENCY UNEMPLOYMENT COMPENSATION
ACCOUNT.
(a) In General.--Any agreement under this title shall
provide that the State will establish, for each eligible
individual who files an application for temporary emergency
unemployment compensation, a temporary emergency unemployment
compensation account with respect to such individual's
benefit year.
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be equal to 13 times the individual's
average weekly benefit amount for the benefit year.
(2) Reduction for extended benefits.--The amount in an
account under paragraph (1) shall be reduced (but not below
zero) by the aggregate amount of extended compensation (if
any) received by such individual relating to the same benefit
year under the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
(3) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any
week is the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for such week for total unemployment.
SEC. 303. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE
PAYMENT OF TEMPORARY EMERGENCY UNEMPLOYMENT
COMPENSATION.
(a) General Rule.--There shall be paid to each State which
has entered into an agreement under this title an amount
equal to--
(1) 100 percent of any regular compensation made payable to
individuals by such State by virtue of the modifications
which are described in section 301(b)(2) and deemed to be in
effect with respect to such State pursuant to section
301(b)(1)(A);
(2) 100 percent of any regular compensation--
(A) which is paid to individuals by such State by reason of
the fact that its State law contains provisions comparable to
the modifications described in subparagraphs (A) and (B) of
section 301(b)(2); but only
(B) to the extent that those amounts would, if such amounts
were instead payable by virtue of the State law's being
deemed to be so modified pursuant to section 301(b)(1)(A),
have been reimbursable under paragraph (1); and
(3) 100 percent of the temporary emergency unemployment
compensation paid to individuals by the State pursuant to
such agreement.
(b) Treatment of Reimbursable Compensation.--No payment
shall be made to any State under this section in respect of
any compensation to the extent the State is entitled to
reimbursement in respect of such compensation under the
provisions of any Federal law other than this title or
chapter 85 of title 5, United States Code. A State shall not
be entitled to any reimbursement under such chapter 85 in
respect of any compensation to the extent the State is
entitled to reimbursement under this title in respect of such
compensation.
(c) Determination of Amount.--Sums under subsection (a)
payable to any State by reason of such State having an
agreement under this title shall be payable, either in
advance or by way of reimbursement (as may be determined by
the Secretary), in such amounts as the Secretary estimates
the State will be entitled to receive under this title for
each calendar month, reduced or increased, as the case may
be, by any amount by which the Secretary finds that the
Secretary's estimates for any prior calendar month were
greater or less than the amounts which should have been paid
to the State. Such estimates may be made on the basis of such
statistical, sampling, or other method as may be agreed upon
by the Secretary and the State agency of the State involved.
SEC. 304. FINANCING PROVISIONS.
(a) In General.--There are appropriated such funds as are
necessary to make payments to States having agreements
entered into under this title.
(b) Certification.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this title. The
Secretary of the Treasury, prior to audit or settlement by
the General Accounting Office, shall make payments to the
State in accordance with such certification, by transfers
from the extended unemployment compensation account (as so
established) to the
[[Page S12775]]
account of such State in the Unemployment Trust Fund (as so
established).
(c) Assistance to States.--There are appropriated, without
fiscal year limitation, such funds as may be necessary for
purposes of assisting States (as provided in title III of the
Social Security Act (42 U.S.C. 501 et seq.) in meeting the
costs of administration of agreements under this title.
(d) Appropriations for Certain Payments.--There are
appropriated from the general fund of the Treasury, without
fiscal year limitation, such sums as the Secretary estimates
to be necessary to make the payments under this section in
respect of--
(1) compensation payable under chapter 85 of title 5,
United States Code; and
(2) compensation payable on the basis of services to which
section 3309(a)(1) of the Internal Revenue Code of 1986
applies.
Amounts appropriated pursuant to the preceding sentence shall
not be required to be repaid.
SEC. 305. FRAUD AND OVERPAYMENTS.
(a) In General.--If an individual knowingly has made, or
caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed,
or caused another to fail, to disclose a material fact, and
as a result of such false statement or representation or of
such nondisclosure such individual has received an amount of
temporary emergency unemployment compensation under this
title to which he was not entitled, such individual--
(1) shall be ineligible for further temporary emergency
unemployment compensation under this title in accordance with
the provisions of the applicable State unemployment
compensation law relating to fraud in connection with a claim
for unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have
received amounts of temporary emergency unemployment
compensation under this title to which they were not
entitled, the State shall require such individuals to repay
the amounts of such emergency unemployment compensation to
the State agency, except that the State agency may waive such
repayment if it determines that--
(1) the payment of such emergency unemployment compensation
was without fault on the part of any such individual; and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any
temporary emergency unemployment compensation payable to such
individual under this title or from any unemployment
compensation payable to such individual under any Federal
unemployment compensation law administered by the State
agency or under any other Federal law administered by the
State agency which provides for the payment of any assistance
or allowance with respect to any week of unemployment, during
the 3-year period after the date such individuals received
the payment of the temporary emergency unemployment
compensation to which they were not entitled, except that no
single deduction may exceed 50 percent of the weekly benefit
amount from which such deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
(d) Review.--Any determination by a State agency under this
section shall be subject to review in the same manner and to
the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.
SEC. 306. DEFINITIONS.
In this title:
(1) In general.--The terms ``compensation'', ``regular
compensation'', ``extended compensation'', ``additional
compensation'', ``benefit year'', ``base period'', ``State'',
``State agency'', ``State law'', and ``week'' have the
respective meanings given such terms under section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note), subject to paragraph (2).
(2) State law and regular compensation.--In the case of a
State entering into an agreement under this title--
(A) ``State law'' shall be considered to refer to the State
law of such State, applied in conformance with the
modifications described in section 301(b)(2); and
(B) ``regular compensation'' shall be considered to refer
to such compensation, determined under its State law (applied
in the manner described in subparagraph (A));
except as otherwise provided or where the context clearly
indicates otherwise.
SEC. 307. APPLICABILITY.
(a) In General.--An agreement entered into under this title
shall apply to weeks of unemployment--
(1) beginning no earlier than the first day of the first
week after the date on which such agreement is entered into;
and
(2) ending before the date that is 12 months after the date
of enactment of this Act.
(b) Specific Rules.--
(1) In general.--Under such an agreement, the following
rules shall apply:
(A) Alternative base periods.--The modification described
in section 301(b)(2)(A) (relating to alternative base
periods) shall not apply except in the case of initial claims
filed on or after the first day of the week that includes
September 11, 2001.
(B) Part-time employment.--The modifications described in
section 301(b)(2)(B) (relating to part-time employment) shall
apply to weeks of unemployment described in subsection (a),
regardless of the date on which an individual's initial claim
for benefits is filed.
(C) Eligibility for teuc.--The payments described in
section 301(b)(1)(B) (relating to temporary emergency
unemployment compensation) shall not apply except in the case
of individuals exhausting their rights to regular
compensation (as described in clause (i) of such section) on
or after the first day of the week that includes September
11, 2001.
(2) Reapplication process.--
(A) Alternative base periods.--In the case of an individual
who filed an initial claim for regular compensation on or
after the first day of the week that includes September 11,
2001, and before the date that the State entered into an
agreement under subsection (a)(1) that was denied as a result
of the application of the base period that applied under the
State law prior to the date on which the State entered into
the such agreement, such individual--
(i) may refile a claim for regular compensation based on
the modification described in section 301(b)(2)(A) (relating
to alternative base periods) on or after the date on which
the State enters into such agreement and before the date on
which such agreement terminates; and
(ii) if eligible, shall be entitled to such compensation
only for weeks of unemployment described in subsection (a)
beginning on or after the date on which the individual files
such claim.
(B) Part-time employment.--In the case of an individual who
before the date that the State entered into an agreement
under subsection (a)(1) was denied regular compensation under
the State law's provisions relating to availability for work,
active search for work, or refusal to accept work, solely by
virtue of the fact that such individual is seeking, or
available for, only part-time (and not full-time) work, such
individual--
(i) may refile a claim for regular compensation based on
the modification described in section 301(b)(2)(B) (relating
to part-time employment) on or after the date on which the
State enters into the agreement under subsection (a)(1) and
before the date on which such agreement terminates; and
(ii) if eligible, shall be entitled to such compensation
only for weeks of unemployment described in subsection (a)
beginning on or after the date on which the individual files
such claim.
(3) No retroactive payments for weeks prior to agreement.--
No amounts shall be payable to an individual under an
agreement entered into under this title for any week of
unemployment prior to the week beginning after the date on
which such agreement is entered into.
____
Domenici Stimulus Bill
------------------------------------------------------------------------
Cost in
billions
----------------
2002 2002-11
------------------------------------------------------------------------
Relief for Low and Middle-Income Americans
Payroll Tax Holiday: Offer workers and employers a one- $38 $38
month holiday from federal payroll taxes while holding
federal trust funds harmless..........................
Expand the Safety Net for Working Americans
Extended and Expanded Unemployment Benefits: Provide 9 12
additional 13 weeks of unemployment benefits to
workers who exhaust their standard benefits after 9/
11, expand eligibility to part-time workers, apply
alternative base period...............................
Stimulus for Encouraging Investment--Bonus
Expensing: Enhance expensing of capital expenditures 26 12
with 20% bonus depreciation (3-year sunset)...........
----------------
Total Stimulus and Assistance...................... 73 62
------------------------------------------------------------------------
______
By Mr. BAYH (for himself, Mr. McCain, Mr. Cleland, and Mr.
Lieberman):
S. 1792. A bill to further facilitate service for the United States,
and for other purposes; to the Committee on Health, Labor, and
Pensions.
Mr. McCAIN. Madam President, today, Senator Bayh and I are
introducing legislation, the Call to Service Act of 2001, that will
expand opportunities for Americans to serve our nation. Congressmen
Ford of Tennessee and Congressman Osborne of Nebraska are offering
companion legislation in the House, and I want to thank them for their
strong, bipartisan leadership in the face of America's new challenge at
home and overseas.
All of us welcome the support of America's Promise, Teach for
America, AmeriCorps Alums, City Year, the National Association of
Service and Conservation Corps, the Naval Reserve Association, the
Reserve Officers Association, the American Legion, and many other
groups dedicated to service to our nation.
Our legislation is not a Democratic or Republican initiative. Duty,
honor, and country are values that transcend party or ideology. This is
a uniquely American moment in which a crisis becomes an opportunity to
harness our
[[Page S12776]]
unity and channel is into what historian Stephen Ambrose describes as
``common-patriotism.''
In the aftermath of September 11, the American people have
demonstrated, through their courage and generosity, that they are
prepared to meet the challenge that confronts our Nation. Yet, our
fellow citizens ask how they can do more for their country. That is why
we should act to provide more opportunities for public service.
Forty years ago, at the height of the cold war, President John F.
Kennedy issued his famous call for service, ``Ask not what your country
can do for you, but rather what you can do for your country.'' His
clarion challenge inspired millions of Americans to enter into public
service. President Kennedy created both the civilian Peace Corps and
the Green Berets as avenues to serve.
Now, we are confronted with a new challenge.
In this battle against terror, there are both foreign and domestic
fronts. The heroic sacrifices of the New York City firefighters and
police have truly moved the public. Thousands of men and women in
uniform are now in harms way to defend our liberty and freedom.
The American people are also ready to serve at home. Walk down any
street and you will see a blizzard of American flags. Over a billion
dollars have been contributed to the victims of the terrorist attacks.
We should seize this moment and issue a new call to service. There will
be many tasks ahead, both new and old. On the home front, there are new
security and civil defense needs. The military will also require new
recruits to confront the challenges abroad and within our borders. And,
of course, there are many other ongoing service opportunities ranging
from combating illiteracy to helping children and our elderly.
A major component of our legislation would be to expand AmeriCorps.
Since it was created, more than 200,000 Americans have served one-to-
two year stints in AmeriCorps, tutoring children, building low-income
housing or helping flood-ravaged communities. AmeriCorps achievements
are impressive: thousands of homes constructed; hundreds of thousands
of seniors assisted to live independently in their own homes; millions
of children taught, tutored, and mentored. The program receives broad
bipartisan support, with 49 of the Nation's 50 Governors signing a
letter last year urging Congress to support AmeriCorps.
But for all its concrete achievements, AmeriCorps has a fundamental
flaw: In its seven years of existence it has barely stirred the
Nation's imagination. Two out of every three Americans say that they
have never heard of the program. We seek not only to expand the
program, but also make certain that it has national objectives. We also
charge the program with the task of assembling a plan to assist the new
needs in the area of Homeland Defense.
We must also ask our Nation's colleges to step up to the plate and
more aggressively promote service. Currently, only a small fraction of
college work-study funds are devoted to community service, far less
than what Congress originally intended when it passed the Higher
Education Act of 1965. Our legislation requires universities to being
truly complying with the intent of the act to promote student
involvement in community activities.
We should also be concerned by the growing gap between our nation's
military and civilian cultures. While the volunteer military has been
successful, fewer Americans know first-hand the sacrifices and
contributions of their fellow citizens who serve in uniform.
There are also many civil defense needs that must be met to defend
our Nation against terrorists attacks and having a shorter-term
enlistment option will help provide the manpower to defend the security
of our Nation. An October 15 article in the Los Angeles Times described
``the sheer size of the task of protecting targets'' within our
borders. And a recent Newsweek cover story, ``Protecting America: What
Must Be Done,'' cited a long list of potential terrorist targets,
including nuclear power plants, seaports, dams, chemical plants,
airports, water supplies, and government buildings across the United
States.
To bolster our preparedness against terrorist attack, our legislation
allows that Defense Department to create a new short-term enlistment to
encouraging more young Americans to serve in the military. This new 18-
18-18-enlistment option would provide an $18,000 post-service award for
18-months of active duty and 18 months of reserve duty.
Our legislation also significantly improves the benefits of the
Montgomery GI bill by doubling the annual education benefit from $7,800
to $15,600 and by encouraging service-members to participate in the
program through the elimination of the current 10-year requirement from
use of the GI Bill educational benefits.
Our legislation also ensures maximum accessibility to colleges and
high schools by military service recruiters. We close loopholes in
current recruiting access statutes, especially where colleges may be
allowing access but not providing, in the spirit of the law, full
access to recruiters in terms of both information they require and
reasonable physical presence.
Finally, our legislation establishes a 9-member Commission on
Military Recruitment and National Service to be appointed by the
Secretary of Defense and Secretary of State to examine such things as
ways to shrink the civilian-military gap and develop ways to bring in a
larger, broader pool of recruits.
As a country, we should strive to make national service a rite of
passage for young Americans. Not only will our Nation benefit, but
those whose serve will find their lives transformed. They will be able
to glimpse the glory of serving a cause greater than their self-
interest. They will come to know both the obligations and rewards of
active citizenship. Over the past few years, we have celebrated the
achievements of the Greatest Generation. Now a new generation is
confronted with a challenge to defend our great nation. Let us seize
the moment and provide Americans with the opportunity to serve our
great nation.
Mr. BAYH. Madam President, I rise today with my colleague Senator
John McCain to introduce the Call to Service Act of 2001. I want to
express my appreciation to Senator McCain; without his leadership we
would not be here today. I also want to extend my thanks to Congressman
Harold Ford and Congressman Tom Osborne for their strong leadership in
the House on this issue.
In addition, former President Clinton deserves our thanks and
gratitude. He championed public service and AmeriCorps during his
tenure. We build upon his legacy today and acknowledge with pride the
important contribution to America's well-being he has made in this
area.
We are introducing this legislation at a time of great challenge for
our country. But within this challenge lie the seeds of opportunity if
we can seize the moment, the seeds of opportunity for civic renewal
across the United States of America.
Everywhere I have gone since the tragedy of September 11, people of
every age are asking, What can I do? How can I help? So to those who
are looking for a way to help to put something back, we are here today
to say that the Call to Service Act will give you those opportunities.
We expand the AmeriCorps program fully fivefold, increasing the
number of volunteers annually, from 50,000 to 250,000, so that every 4
years, 1 million young people will have the opportunity to serve our
country. Fifty percent of the new volunteers will be focused on
homeland defense to meet the many issues that have come to light and
need attention since the events of September 11. With this dramatic
expansion, we include strong accountability measures to ensure
measurable, positive outcomes for the communities served by AmeriCorps.
The Call to Service Act significantly expands the serve study
initiative. Work-study in our colleges was originally intended to get
kids involved in public service and community work, but unfortunately,
it has not lived up to that initial promise. The requirement today is
that 7 percent of students involved in work-study have to be involved
in community service. We expand that more than threefold to 25 percent,
to get America's best and brightest giving back to the community. This
means that every year, approximately 250,000 students will be
contributing to their communities. Expanding the community service
portion
[[Page S12777]]
of work-study has broad bipartisan support. In May 2000, General Powell
sent a letter to the Nation's college presidents to ``work toward a
goal of dedicating a greater and greater portion of your Federal
College Work Study funds each year to community service.'' I ask
unanimous consent that this letter be printed in the Record.
There being no objection, the letter was ordered to be printed in the
Record, as follows:
America's Promise,
The Alliance For Youth,
Alexandria, VA, May 30, 2000.
Dear Friend: President Clinton has written you and I join
him in enlisting your support in a very important endeavor--
the well being of our Nation's young people.
Three years ago at the Presidents' Summit for America's
Future held in Philadelphia, all the living Presidents of the
United States and thousands of other national leaders pledged
to harness the power of volunteerism in the service of our
Nation's most important resource, our youth. The organization
I chair, America's Promise. The Alliance for Youth, was born
at the 1997 Presidents' Summit, and it continues today
mobilizing communities, individuals, organizations, and
institutions to make five key promises to every youngster: an
ongoing relationship with a caring adult--parent, mentor,
tutor or coach; safe places and structured activities during
non-school hours; a healthy start; a marketable skill through
effective education; and an opportunity to give back through
community service.
Colleges and universities can play a crucial role in this
movement. Actually, many have already enlisted in our crusade
by becoming Colleges and Universities of Promise. With that
pledge they make a commitment to keep the Five Promises to
young people in their communities.
One very substantial way you can contribute is by using the
Federal College Work Study Program to enable hundreds of
thousands of college students to serve in the communities
where they study. By being tutors or mentors, or by working
with local schools and youth-service organizations, college
students can make a tangible difference in the lives of young
children. I can attest that there are thousands more
nonprofit organizations and community groups serving young
children and youth that would benefit profoundly from the
energy and idealism of your students.
In that spirit, President Clinton is asking you to commit a
greater share of your work study assignments to community
service. I second the President's request and encourage you
to work toward a goal of dedicating a greater and greater
portion of your Federal College Work Study funds each year to
community service. Institutions of higher learning have
always been leaders in the life of our nation. I hope you
will seize this opportunity to demonstrate that leadership
again.
Please join in this effort. Help us to keep America's
Promise. Thank you and best wishes.
Sincerely,
Gen. Colin L. Powell, USA (Ret),
Chairman.
______
By Mr. CLELAND:
S. 1794. A bill to amend title 49, United States Code, to prohibit
the unauthorized circumvention of airport security systems and
procedures; to the Committee on Commerce, Science, and Transportation.
Mr. CLELAND. Madam President, I rise today to introduce legislation
that will make it a Federal criminal offense to intentionally
circumvent an airport security checkpoint. This morning I chaired the
first Senate Commerce Committee hearing on aviation security since the
landmark aviation security bill was signed into law earlier this fall.
That historic piece of legislation was enacted as a response to the
events of September 11, when terrorists commandeered U.S. commercial
jets filled with passengers and used them as weapons of mass
destruction.
Those terrorist attacks have precipitated a sea-change in attitude on
how we view our homeland security. There is no such thing as ``business
as usual,'' especially at our airports across this country. Immediately
after the events of 9-11, the Federal Aviation Administration and U.S.
Department of Transportation took steps to tighten aviation security
across the country. U.S. airlines and airports put in place additional
security safeguards. And Congress passed the most sweeping aviation
security bill in history.
Under the new law, every commercial airport will now have a Federal
security manager and the manager will conduct an immediate assessment
of safety procedures at the busiest airports in the country. We will
have strict and uniform national standards for the hiring and training
and job performance of the men and women who are on the front lines of
ensuring that our airports and airplanes are not only the safest in the
world, but are also the most secure. Because of this legislation, every
airport screener must now be a U.S. citizen. He or she must pass a
criminal background check, and they must perform well in their job. If
they don't, and this includes federal screeners, they can and will be
fired immediately. Cockpit doors will be fortified, the number of air
marshals on airplanes will be significantly increased, and
international flights must provide the U.S. Customs Service with
passenger lists before they can land in this country.
Hartsfield Atlanta International Airport, the world's busiest
airport, Delta, with its world headquarters in Atlanta, and AirTran are
key not just to Georgia's economy, but to our national aviation system
as well. At the Commerce Committee hearing this morning, Spokespersons
from each of these Georgia giants, told us about the security measures
that have been put in place since the September 11 hijackings and what
further steps they plan to take in light of the requirements of the new
aviation security law.
At the hearing, Hartsfield's General Manager, Mr. Benjamin DeCosta,
addressed the incident of November 16 when an individual breached
security at the Atlanta airport. The security breach triggered the
total evacuation of Hartsfield and a temporary halt of incoming
and outgoing air traffic. That action caused a ripple effect of delays
and flight cancellations. I might add that I have firsthand knowledge
of those delays, since I spent some ``quality time'' on the tarmac in
Atlanta that day. But I want to stress that despite those delays, the
system worked. Hartsfield correctly followed the FAA directive, put in
place after September 11, that required airport lock-down until airport
security could be assured.
However, the November incident revealed a glaring loophole in the
system, even after enactment of the new airline security legislation.
Currently, an intentional security violation aboard an aircraft is a
Federal crime, but a willful breach of an airport security checkpoint
is punishable only by local criminal penalties and federal civil
penalties. Just as we have at last stepped up to the plate to assure
greater uniformity and greater accountability through federalizing the
airport security workforce, I believe it is the responsibility of
Congress to address this shortcoming in our federal laws. Accordingly,
I am introducing legislation, the Airport Checkpoint Enhancement, or
ACE, Act, to make willful violations of airport security checkpoints a
federal crime. We should send a message loud and clear that airport
business is serious business, that if you come to a U.S. airport for
mischief or for folly, you will pay the consequences.
My legislation addresses the all-important issue of aviation security
which, as we have recently learned in the most painful way possible, is
a matter of national security. Specifically, the ACE Act will amend the
recently-passed Aviation and Transportation Security Act to provide a
federal criminal penalty for individuals who intentionally circumvent
or breach an airport security checkpoint. It was amazing to me to learn
that in Georgia, an individual who willfully violates the secure area
of an airport is only subject to a misdemeanor which means a maximum
penalty involving a civil fine up to $1,100 and a year in jail. My
legislation will mean that violators could face up to 10 years in
prison. This legislation is supported by Atlanta's Hartsfield
International Airport, Delta Airlines, the Air Carrier Association of
America, and the Office of the Solicitor General, Clayton County, GA.
We have only just begun to improve airport security and therefore, I
look forward to continuing this discussion with airport officials and
law enforcement officers across the country on how we can best protect
passengers, airport workers, and air travel in the future.
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. 1794
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 ``Airport Checkpoint
Enhancement Act''.
[[Page S12778]]
SEC. 2. PROHIBITION ON UNAUTHORIZED CIRCUMVENTION OF AIRPORT
SECURITY SYSTEMS AND PROCEDURES.
(a) Prohibition.--Section 46503 of title 49, United States
Code, as added by section 114 of the Aviation and
Transportation Security Act (Public Law 107-71), is amended--
(1) by inserting ``(a) Interference With Security Screening
Personnel.--'' before ``An individual''; and
(2) by adding at the end the following new subsection:
``(b) Unauthorized Circumvention of Security Systems and
Procedures.--An individual in an area within a commercial
service airport in the United States who intentionally
circumvents, in an unauthorized manner, a security system or
procedure in the airport shall be fined under title 18,
imprisoned for not more than 10 years, or both.''.
(b) Conforming and Clerical Amendments.--(1) The section
heading of that section is amended to read as follows:
``Sec. 46503. Interference with security screening personnel;
unauthorized circumvention of security systems or
procedures''.
(2) The item relating to that section in the table of
sections at the beginning of chapter 465 of that title is
amended to read as follows:
``46503. Interference with security screening personnel; unauthorized
circumvention of security systems or procedures.''.
____________________