[Congressional Record Volume 148, Number 47 (Wednesday, April 24, 2002)]
[Senate]
[Pages S3304-S3319]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. WELLSTONE:
  S. 2236. A bill to amend title III of the Public Health Service Act 
to provide coverage for domestic violence screening and treatment, to 
authorize the Secretary of Health and Human Services to make grants to 
improve the response of health care systems to domestic violence, and 
train health care providers and federally qualified health centers 
regarding screening, identification, and treatment for families 
experiencing domestic violence; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. WELLSTONE. Madam President, I rise today to introduce the 
Domestic Violence Screening and Services Act of 2002, an act to improve 
the response of health care systems to domestic violence, and to train 
health care providers and federally qualified health centers regarding 
screening, identification, and treatment for families experiencing 
domestic violence.
  Nearly one third of American women, 31 percent, report being 
physically or sexually abused by a husband or boyfriend at some point 
in their lives, and about 1200 women are murdered every year by their 
intimate partner, nearly 3 each day. 37 percent of all women who sought 
care in hospital emergency rooms for violence related injuries were 
injured by a current or former spouse, boyfriend, or girlfriend. In 
addition to injuries sustained during violent episodes, physical and 
psychological abuse are linked to numerous adverse health effects 
including arthritis, chronic neck or back pain, migraine and other 
frequent headaches, problems with vision, and sexually transmitted 
infections, including HIV/AIDS.
  Each year, at least 6 percent of all pregnant women, about 240,000 
pregnant women in this country, are battered by the men in their lives. 
This battering leads to complications in pregnancy, including low 
weight gain, anemia, infections, and first and second trimester 
bleeding. Pregnant women are more likely to die of homicide than to die 
of any other cause.
  Currently, about 10 percent of primary care physicians routinely 
screen for intimate partner abuse during new patient visits and 9 
percent routinely screen during periodic checkups. Recent clinical 
studies have shown the effectiveness of a 2-minute screening for early 
detection of abuse of pregnant women. Additional longitudinal studies 
have tested a 10-minute intervention that was highly effective in 
increasing the safety of pregnant abused women. 70 to 81 percent of 
patients studied reported that they would like their health care 
providers to ask them privately about intimate partner violence.
  Medical services for abused women cost an estimated $857,300,000 
every year. It is time for us to also authorize resources to promote 
the effort to make screening for domestic violence routine in health 
care settings. This bill would establish domestic violence prevention 
grants in the amount of $5 million dollars per year to improve 
screening and treatment for domestic violence in federally qualified 
health centers. Grants could be used for the implementation, 
dissemination, and evaluation of policies and procedures to guide 
health care professionals and staff to respond to domestic violence. 
Grants could also be used to provide training and follow-up technical 
assistance to health professionals and staff to screen for domestic 
violence, and then to appropriately assess, treat, and refer patients 
who are victims of domestic violence to domestic violence service 
providers. In addition, grants could be used for the development of 
onsite access to services to address, the safety, medical, and mental 
health needs of patients either by increasing the capacity of existing 
health professionals and staff to address these issues or by 
contracting with or hiring domestic violence advocates to provide the 
services.
  This bill would also authorize the Secretary of Health and Human 
Services to award grants in the amount of $5 million per year to 
strengthen the response of State and local health care systems to 
domestic violence by building the capacity of health personnel to 
identify, address, and prevent domestic violence. Up to 10 grants would 
be utilized to design and implement comprehensive statewide strategies 
in clinical and public healthcare settings and to promote education and 
awareness about domestic violence at a statewide

[[Page S3305]]

level. Up to 10 additional grants would be used to design and implement 
comprehensive local strategies to improve the response of the health 
care system in hospitals, clinics, managed care settings, emergency 
medical services, and other health care settings.
  Finally, this bill would also ensure that health care professionals 
working in the National Health Service Corps receiving training on how 
to screen, assess, treat and refer patients who are victims of domestic 
violence. Our health care system represents a potentially life saving 
point of intervention for those experiencing domestic violence. We need 
to support these efforts to improve the ability of our health care 
system to be a safe place for women to turn to when most in need.
  Madam President, I ask unanimous consent that a summary of the bill 
be printed in the Record.
  There being no objection, the summary was ordered to be printed in 
the Record, as follows:

   Summary--The Domestic Violence Screening and Services Act of 2002


                                overview

       The Domestic Violence Screening and Services Act of 2002 
     would create domestic violence prevention grants to improve 
     screening and treatment for patients at Federally Qualified 
     Health Centers. The bill would also provide grants to 
     strengthen the response of State and local health care 
     systems to domestic violence and would ensure that health 
     care professionals working in the National Health Service 
     Corps receive training on how to screen, assess, treat, and 
     render patients who are victims of domestic violence.


                   federally qualified health centers

       In an effort to increase screening and access to services 
     for these patients who are or may be experiencing domestic 
     violence the bill amends Part P of title III of the Public 
     Health Service Act by adding a new Sec. 3990 creating 
     Domestic Violence Prevention Grants in the amount of 5 
     million dollars per year for four years.
       Funds would be used to design and implement comprehensive 
     local strategies to improve the health care response to 
     domestic violence in federally qualified health centers. 
     These strategies would include: the development, 
     implementation, dissemination, and evaluation of policies and 
     procedures to guide health care professionals and staff 
     responding to domestic violence; the provision of training 
     and follow-up technical assistance to health care 
     professionals and staff to screen for domestic violence, and 
     then to appropriately assess, record in medical records, 
     treat, and refer patients who are victims of domestic 
     violence to domestic violence services; the development of 
     on-site access to services to address the safety, medical, 
     mental health, and economic needs of patients either by 
     increasing the capacity of existing health care 
     professionals and staff to address these issues or by 
     contracting with or hiring domestic violence advocates to 
     provide the services.


Grants for Domestic Violence Screening and Treatment in State and Local 
                           healthcare Systems

       The Secretary of Health and Human Services acting through 
     the Assistant Secretary for the Administration for Children 
     and Families shall award grants to fund 10 demonstration 
     projects at the state level and 10 demonstration grants on 
     the local level to develop comprehensive strategies to 
     improve the response of the healtcare system to domestic 
     violence. Recommended authorization is $5 million/year for 
     four years.
       Eligible entities--would be: A. a State or local health 
     department, nonprofit State domestic violence coalition or 
     local service-based program, State professional medical 
     society, State health professional association, or other 
     nonprofit or State entity with a history of effective work in 
     the field of domestic violence; that can B. demonstrate that 
     it is representing a team of organizations and agencies 
     working collaboratively to strengthen the health care 
     system's response to domestic violence and that such team 
     includes domestic violence and health care organizations.
       Use of funds--Funds would be used to design and implement 
     comprehensive statewide and local strategies to improve the 
     health care response to domestic violence in hospitals, 
     clinics, managed care settings, emergency medical services, 
     and other health care settings. These strategies would 
     include: the development, implementation, dissemination, and 
     evaluation of policies and procedures to guide health care 
     professionals and staff responding to domestic violence; the 
     provision of training and follow-up technical assistance to 
     health care professionals and staff to screen for domestic 
     violence, and then to appropriately assess, record in medical 
     records, treat, and refer patients who are victims of 
     domestic violence the domestic violence services; the 
     implementation of practice guidelines for routine screening 
     and recording mechanisms to identify and document domestic 
     violence; the development of on-site access to services to 
     address the safety, medical, mental health, and economic 
     needs of patients either by increasing the capacity of 
     existing health care professionals and staff to address these 
     issues or by contracting with or hiring domestic violence 
     advocates to provide the services or other model appropriate 
     to the geographic and cultural needs of a site.
       In additional required that health care professionals 
     trained through the National Health Service Corps receiving 
     in domestic violence screening and treatment.
                                 ______
                                 
      By Mr. ROCKEFELLER:
  S. 2237. A bill to amend title 38, United States Code, to enhance 
compensation for veterans with hearing loss, and for other purposes; to 
the Committee on Veterans' Affairs.
  Mr. ROCKEFELLER. Madam President, today I introduce legislation on 
behalf of American veterans whose hearing loss may have resulted from 
their military service. The Veterans Hearing Loss Compensation Act of 
2002 would accomplish two goals: first, it would correct a long-
standing inequity in compensating veterans for service-related hearing 
loss. Second, it would direct VA, with input from outside experts, to 
determine whether service in certain military occupations can be 
presumed to be associated with hearing loss.
  Currently, section 1160 of title 38, United States Code, directs VA 
to extend special consideration when evaluating veterans' service-
connected disabilities in ``paired organs or extremities,'' such as 
eyes, kidneys, or hands. If there is damage to both organs, even if 
only one resulted from military service, the disability of the non-
service-connected organ may be considered.
  For all listed disabilities except hearing loss, the law requires 
only ``loss'' or ``loss of use,'' whereas ``total deafness'' is 
required in rating hearing loss. If hearing loss in either ear is 
anything less than total, VA cannot even consider the loss in the non-
service-connected ear. Section 2 of this bill would remove this 
requirement for total hearing loss in either ear, allowing VA to 
consider the effect of any non-service-connected disability when rating 
hearing loss.
  Section 3 of this bill would require VA to contract with an 
independent scientific organization, such as the National Academy of 
Sciences, to review scientific evidence on occupational hearing loss, 
particularly acoustic trauma experienced during military service. This 
legislation would also require VA to review its own claims and record 
of medical treatment for hearing loss or tinnitus in veterans. Through 
these two avenues, VA should be better able to determine objectively 
whether service in certain military specialties might be associated 
with an increased risk of hearing loss later in life.
  Once the outside scientific authority reports to VA, the Secretary 
would be required to determine whether the evidence warrants presuming 
an association between certain military occupations and hearing loss or 
tinnitus. If VA finds sufficient evidence linking noise exposure in 
these occupations to veterans' later hearing loss, the Secretary would 
be required to develop regulations for providing disability benefits to 
these veterans; if VA determines that no presumptive service-connection 
is appropriate, the Secretary would be required to publish this 
determination and report to Congress on the basis of that decision.
  With the aging of the veterans population, the number of claims for 
hearing loss or tinnitus continues to climb. VA faces difficulties in 
determining whether certain veterans can attribute their hearing loss 
to damage suffered decades ago during military service, especially as 
many veterans received no appropriate hearing evaluation at discharge.
  I realize that the proposed process is not an immediate fix, but it 
should provide VA, Congress, and veterans with a solid basis for 
tackling this difficult problem. I urge my colleagues to join me in 
supporting this important piece of legislation.
  I request 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. 2237

       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 ``Veterans Hearing Loss 
     Compensation Act of 2002''.

     SEC. 2. COMPENSATION FOR HEARING LOSS IN PAIRED ORGANS.

       (a) Hearing Loss Required for Compensation.--Section 
     1160(a)(3) of title 38, United

[[Page S3306]]

     States Code, is amended by striking ``total'' both places it 
     appears.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act, 
     and shall apply with respect to months that begin on or after 
     that date.

     SEC. 3. AUTHORITY FOR PRESUMPTION OF SERVICE-CONNECTION FOR 
                   HEARING LOSS ASSOCIATED WITH PARTICULAR 
                   MILITARY OCCUPATIONAL SPECIALTIES.

       (a) In General.--(1) Subchapter II of chapter 11 of title 
     38, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 1119. Presumption of service connection for hearing 
       loss associated with particular military occupational 
       specialties

       ``(a) For purposes of section 1110 of this title, and 
     subject to section 1113 of this title, hearing loss, 
     tinnitus, or both of a veteran who while on active military, 
     naval, or air service was assigned to a military occupational 
     specialty or equivalent described in subsection (b) shall be 
     considered to have been incurred in or aggravated by such 
     service, notwithstanding that there is no record of evidence 
     of such hearing loss or tinnitus, as the case may be, during 
     the period of such service.
       ``(b) A military occupational specialty or equivalent 
     referred to in subsection (a) is a military occupational 
     specialty or equivalent, if any, that the Secretary 
     determines in regulations prescribed under this section in 
     which individuals assigned to such military occupational 
     specialty or equivalent in the active military, naval, or air 
     service are or were likely to be exposed to a sufficiently 
     high level of acoustic trauma as to result in permanent 
     hearing loss, tinnitus, or both.
       ``(c) In making determinations for purposes of subsection 
     (b), the Secretary shall take into account the report 
     submitted to the Secretary by the National Academy of 
     Sciences under section 3(c) of the Veterans Hearing Loss 
     Compensation Act of 2002.
       ``(d)(1) Not later than 60 days after the date on which the 
     Secretary receives the report referred to in subsection (c), 
     the Secretary shall determine whether or not a presumption of 
     service connection for hearing loss, tinnitus, or both is 
     warranted for the hearing loss, tinnitus, or both, as the 
     case may be, of individuals assigned to each military 
     occupational specialty or equivalent identified by the 
     National Academy of Sciences in such report as a military 
     occupational specialty or equivalent in which individuals are 
     or were likely to be exposed to a sufficiently high level of 
     acoustic trauma as to result in permanent hearing loss, 
     tinnitus, or both to a degree which would be compensable as a 
     service-connected disability under the laws administered by 
     the Secretary.
       ``(2) If the Secretary determines under paragraph (1) that 
     a presumption of service connection is warranted with respect 
     to any military occupational specialty or equivalent 
     described in that paragraph and hearing loss, tinnitus, or 
     both, the Secretary shall, not later than 60 days after the 
     date of the determination, issue proposed regulations setting 
     forth the Secretary's determination.
       ``(3) If the Secretary determines under paragraph (1) that 
     a presumption of service connection is not warranted with 
     respect to any military occupational specialty or equivalent 
     described in that paragraph and hearing loss, tinnitus, or 
     both, the Secretary shall, not later than 60 days after the 
     date of the determination--
       ``(A) publish the determination in the Federal Register; 
     and
       ``(B) submit to the Committees on Veterans' Affairs of the 
     Senate and the House of Representatives a report on the 
     determination, including a justification for the 
     determination.
       ``(e) Any regulations issued under subsection (d)(2) shall 
     take effect on the date provided for in such regulations. No 
     benefit may be paid under this section for any month that 
     begins before that date.''.
       (2) The table of sections at the beginning of chapter 11 of 
     that title is amended by inserting after the item relating to 
     section 1118 the following new item:

``1119. Presumption of service connection for hearing loss associated 
              with particular military occupational specialties.''.

       (b) Presumption Rebuttable.--Section 1113 of title 38, 
     United States Code, is amended by striking ``or 1118'' each 
     place it appears and inserting ``1118, or 1119''.
       (c) Assessment of Acoustic Trauma Associated With Various 
     Military Occupational Specialties.--(1) The Secretary of 
     Veterans Affairs shall seek to enter into an agreement with 
     the National Academy of Sciences, or another appropriate 
     scientific organization, for the Academy to perform the 
     activities specified in this subsection. The Secretary shall 
     seek to enter into the agreement not later than 60 days after 
     the date of the enactment of this Act.
       (2) Under the agreement under paragraph (1), the National 
     Academy of Sciences shall--
       (A) review and assess available data on occupational 
     hearing loss;
       (B) from such data, identify the forms of acoustic trauma 
     that, if experienced by individuals in the active military, 
     naval, or air service, could cause or contribute to hearing 
     loss, hearing threshold shift, or tinnitus in such 
     individuals;
       (C) in the case of each form of acoustic trauma identified 
     under subparagraph (B)--
       (i) determine how much exposure to such form or acoustic 
     trauma is required to cause or contribute to hearing loss, 
     hearing threshold shift, or tinnitus, as the case may be, and 
     at what noise level; and
       (ii) determine whether or not such hearing loss, hearing 
     threshold shift, or tinnitus, as the case may be, is--
       (I) immediate or delayed onset;
       (II) cumulative;
       (III) progressive; or
       (IV) any combination of subclauses (I) through (III);
       (D) review and assess the completeness and accuracy of data 
     of the Department of Veterans Affairs and the Department of 
     Defense on hearing threshold shift in individuals who were 
     discharged or released from service in the Armed Forces 
     during the period beginning on December 7, 1941, and ending 
     on the date of the enactment of this Act upon their discharge 
     or release from such service; and
       (E) identify each military occupational specialty or 
     equivalent, if any, in which individuals assigned to such 
     military occupational specialty or equivalent in the active 
     military, naval, or air service are or were likely to be 
     exposed to a sufficiently high level of acoustic trauma as to 
     result in permanent hearing loss, tinnitus, or both to a 
     degree which would be compensable as a service-connected 
     disability under the laws administered by the Secretary of 
     Veterans Affairs.
       (3) Not later than 180 days after the date of the entry 
     into the agreement referred to in paragraph (1), the National 
     Academy of Sciences shall submit to the Secretary a report on 
     the activities of the National Academy of Sciences under the 
     agreement, including the results of the activities required 
     by subparagraphs (A) through (F) of paragraph (2).
       (d) Report on Administration of Benefits for Hearing Loss 
     and Tinnitus.--(1) Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Veterans Affairs 
     shall submit to the Committees on Veterans' Affairs of the 
     Senate and the House of Representatives a report on the 
     claims submitted to the Secretary for disability compensation 
     or health care for hearing loss or tinnitus.
       (2) The report under paragraph (1) shall include the 
     following:
       (A) The number of claims submitted to the Secretary in each 
     of 1999, 2000, and 2001 for disability compensation for 
     hearing loss, tinnitus, or both.
       (B) Of the claims referred to in subparagraph (A)--
       (i) the number of claims for which disability compensation 
     was awarded, set forth by year;
       (ii) the number of claims assigned each disability rating; 
     and
       (iii) the total amount of disability compensation paid on 
     such claims during such years.
       (C) The total cost to the Department of adjudicating the 
     claims referred to in subparagraph (A), set forth in terms of 
     full-time employee equivalents (FTEEs).
       (D) The total number of veterans who sought treatment in 
     Department of Veterans Affairs health facilities care in each 
     of 1999, 2000, and 2001 for hearing-related disorders, set 
     forth by--
       (i) the number of veterans per year; and
       (ii) the military occupational specialties or equivalents 
     of such veterans during their active military, naval, or air 
     service.
       (E) The health care furnished to veterans referred to in 
     subparagraph (D) for hearing-related disorders, including the 
     number of veterans furnished hearing aids and the cost of 
     furnishing such hearing aids.
                                 ______
                                 
      By Mr. LEVIN (for himself, Mr. Thompson, Mr. Lieberman, and Mr. 
        McConnell):
  S. 2238. A bill to permit reviews of criminal records of applicants 
for private security officer employment; to the Committee on the 
Judiciary.
  Mr. LEVIN. Madam President, I am introducing along with Senators 
Thompson, Lieberman and McConnell the Private Security Officer 
Employment Standards Act of 2002, a bill that would provide private 
security firms an opportunity to gain access to national criminal 
history information to determine whether or not employees or applicants 
for employment pose a threat to the facilities and persons they are 
supposed to protect.
  Large numbers of critical non-governmental facilities, from power 
plants to schools to hospitals, are protected by private security firms 
and their civilian security officers. Keeping these facilities secure 
from terrorism or other forms of violent attack is critical to our 
national security. Yet currently most private security employers cannot 
obtain timely national criminal background check information on the 
very people they need to hire to protect these key facilities. This 
legislation seeks to correct that. This bill would authorize private 
security firms to request Federal background check information on 
current and prospective employees through the appropriate State 
agencies, thereby permitting firms to obtain relevant criminal history 
information they might not otherwise receive.

[[Page S3307]]

  The Criminal Justice Information Services Division of the FBI 
maintains complete criminal history records for both Federal crimes and 
State crimes on individuals with criminal records in the United States. 
Searches are most efficiently conducted by using fingerprints to ensure 
efficiency and accuracy. We have already passed legislation 
specifically permitting other industries, the banking, nursing home, 
and child care industries, to name a few, to test their prospective 
employees against the FBI's comprehensive records. Many of the reasons 
that justified passage of those laws, especially the desire to ensure 
that those who provide certain important services have a background 
commensurate with their responsibilities, argues for passage of this 
bill as well.
  This legislation will enhance our Nation's security. As an adjunct to 
our Nation's law enforcement officers, private security guards are 
responsible for the protection of numerous critical components of our 
Nation's infrastructure, including power generation facilities, 
hazardous materials manufacturing facilities, water supply and delivery 
facilities, oil and gas refineries, and food processing plants. The 
approximately 13,000 private security companies in the United States 
employ about 1.5 million persons nationwide. Given the critical nature 
of the facilities private security officers are hired to protect, it is 
imperative that we provide access to information that might disclose 
who is unsuitable for protecting these resources.
  We understand that in about 40 States, private security companies are 
required to receive a State license in order to conduct business. 
Relying upon a Federal bill passed in the early 1970's, 37 States and 
the District of Columbia have passed legislation authorizing State 
agencies to request both State and Federal record searches. Despite 
this authorization, security firms report that searches of both State 
and Federal databases is the exception rather than the rule. That is 
because only one State, California, makes such reviews mandatory. In 
the other jurisdictions with authorizing statutes, reviews of the 
Federal database are conducted at the discretion of the States. I am 
told that in approximately half of the 36 States with authorizing 
statutes, typically only State databases are searched. An additional 13 
States have not even authorized any form of Federal criminal background 
check. What that means is that in approximately 31 States, a private 
security employer typically has no access to any Federal criminal 
database information. In these 31 States, an employment applicant in 1 
State could have a serious criminal conviction in another State and 
still be permitted to perform sensitive security work. The State 
conducting the search would have no idea such a conviction in another 
State existed without access to the Federal database.

  Further, even in those few States that actually conduct Federal 
records searches, I am told that searches of the backgrounds of new 
employees in the Federal database often take 90 to 120 days. While 
checks are pending, security guards are often provided a temporary 
license. This 90 to 120 day period is more than enough time for a guard 
with a temporary license to perpetrate dangerous acts. In light of our 
urgent need to strengthen our homeland security, this lack of access to 
criminal checks and the time it takes to complete such checks is 
unacceptable. We need to act in order to make it easier for States and 
employers to gain timely access to this information.
  The bill strikes the appropriate balance between the interests of all 
parties involved.
  First, the bill permits private security employers to request that 
the FBI criminal history database be searched for prospective or 
existing employees. Requests must be made by the employers through 
their States' identification bureau or similar State agency designated 
by the Attorney General. Employers will not be granted direct access to 
the FBI records. Instead, States will serve as intermediaries between 
employers and the FBI to: one, ensure that employment suitability 
determinations are made pursuant to applicable State law; two, prevent 
disclosure of the raw FBI criminal history information to the employers 
and the public; and three, minimize the FBI's administrative burden of 
having to respond to background check requests from countless different 
sources. The program will not cost the Federal Government anything. The 
legislation allows the FBI, and States if they so choose, to charge 
reasonable fees to security firms to recover their costs of carrying 
out this act.
  Second, the bill protects employee and prospective employee's 
privacy. Before an FBI background check can be conducted, the employee 
or applicant for employment must grant an employer written consent to 
request the FBI database search. In addition, the criminal history 
reports received by the States will not be disseminated to employers. 
Instead, in States that have laws regulating private security guard 
employment, designated State agencies will simply be required to use 
the information provided by the FBI in applying their State standards. 
For those States that have no standards, the States will be instructed 
to inform requesting employers whether or not employees or applicants 
have been convicted of either: one, a felony; two, a violent 
misdemeanor within the past 10 years; or, three, crime of dishonesty 
within the past 10 years. Thus, only the fact that a conviction exists 
or not will be provided by States to employers, and the privacy of the 
records themselves will be maintained. All information provided to 
employers pursuant to this act must be provided to the employees or 
prospective employees. Furthermore, the bill establishes strong 
criminal penalties for those who might falsely certify they are 
authorized security firms or otherwise use information obtained 
pursuant to this act beyond the act's intended purposes.
  Third, the bill protects States' rights. The bill does not impose an 
unfunded mandate on the States. It reserves the right of States to 
charge reasonable fees to employers for their costs in administering 
this act. Moreover, if a State wishes to opt out of this statutory 
regime, it may do so at any time.
  I believe that the time is right for us to enact this legislation. It 
strikes the right balance between the need for employers to gain access 
to this critical information and the privacy rights of current and 
prospective security guards. We have worked with the FBI to ease the 
administrative process, and it will cost the Federal Government 
nothing. There is no undue burden being placed on our States.
  Passage of this act will plug a hole in our homeland security. I urge 
my colleagues to support the passage of this 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. 2238

       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 ``Private Security Officer 
     Employment Standards Act of 2002''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) employment of private security officers in the United 
     States is growing rapidly;
       (2) private security officers function as an adjunct to, 
     but not a replacement for, public law enforcement by helping 
     to reduce and prevent crime;
       (3) such private security officers protect individuals, 
     property, and proprietary information, and provide protection 
     to such diverse operations as banks, hospitals, research and 
     development centers, manufacturing facilities, defense and 
     aerospace contractors, high technology businesses, nuclear 
     power plants, chemical companies, oil and gas refineries, 
     airports, communication facilities and operations, office 
     complexes, schools, residential properties, apartment 
     complexes, gated communities, and others;
       (4) sworn law enforcement officers provide significant 
     services to the citizens of the United States in its public 
     areas, and are supplemented by private security officers;
       (5) the threat of additional terrorist attacks requires 
     cooperation between public and private sectors and demands 
     professional security officers for the protection of people, 
     facilities, and institutions;
       (6) the trend in the Nation toward growth in such security 
     services has accelerated rapidly;
       (7) such growth makes available more public sector law 
     enforcement officers to combat serious and violent crimes;
       (8) the American public deserves the employment of 
     qualified, well-trained private security personnel as an 
     adjunct to sworn law enforcement officers;

[[Page S3308]]

       (9) private security officers and applicants for private 
     security officer positions should be thoroughly screened and 
     trained; and
       (10) standards are essential for the selection, training, 
     and supervision of qualified security personnel providing 
     security services.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Employee.--The term ``employee'' includes both a 
     current employee and an applicant for employment.
       (2) Authorized employer.--The term ``authorized employer'' 
     means any person that--
       (A) provides, as an independent contractor, for 
     consideration, the services of private security officers; and
       (B) is authorized by the Attorney General to obtain 
     information provided by the State or other authorized entity 
     pursuant to this section.
       (3) Private security officer.-- The term ``private security 
     officer''--
       (A) means an individual who performs security services, 
     full- or part-time, for consideration as an independent 
     contractor or an employee, whether armed or unarmed and in 
     uniform or plain clothes, whose primary duty is to perform 
     security services; but
       (B) does not include--
       (i) sworn police officers who have law enforcement powers 
     in the State;
       (ii) employees whose duties are primarily internal audit or 
     credit functions;
       (iii) an individual on active duty in the military service;
       (iv) employees of electronic security system companies 
     acting as technicians or monitors; or
       (v) employees whose duties primarily involve the secure 
     movement of prisoners.
       (4) Security services.--The term ``security services'' 
     means the performance of security services as such services 
     are defined by regulations promulgated by the Attorney 
     General.

     SEC. 4. BACKGROUND CHECKS.

       (a) In General.--
       (1) Submission of fingerprints.--An authorized employer may 
     submit fingerprints or other means of positive identification 
     of an employee of such employer for purposes of a background 
     check pursuant to this Act.
       (2) Employee rights.--
       (A) Permission.--An authorized employer shall obtain 
     written consent from an employee to submit the request for a 
     background check of the employee under this Act.
       (B) Access.--An employee shall be provided confidential 
     access to information relating to the employee provided 
     pursuant to this Act to the authorized employer.
       (3) Providing records.--Upon receipt of a background check 
     request from an authorized employer, submitted through the 
     State identification bureau or other entity authorized by the 
     Attorney General, the Attorney General shall--
       (A) search the appropriate records of the Criminal Justice 
     Information Services Division of the Federal Bureau of 
     Investigation; and
       (B) promptly provide any identification and criminal 
     history records resulting from the background checks to the 
     submitting State identification bureau or other entity 
     authorized by the Attorney General.
       (4) Frequency of requests.--An employer may request a 
     background check for an employee only once every 12 months of 
     continuous employment by that employee unless the employer 
     has good cause to submit additional requests.
       (b) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Attorney General shall issue such 
     final or interim final regulations as may be necessary to 
     carry out this Act, including--
       (1) measures relating to the security, confidentiality, 
     accuracy, use, submission, dissemination, and destruction of 
     information and audits, and recordkeeping;
       (2) standards for qualification as an authorized employer; 
     and
       (3) the imposition of reasonable fees necessary for 
     conducting the background checks.
       (c) Criminal Penalty.--Whoever falsely certifies that he 
     meets the applicable standards for an authorized employer or 
     who knowingly and intentionally uses any information obtained 
     pursuant to this Act other than for the purpose of 
     determining the suitability of an individual for employment 
     as a private security officer shall be fined not more than 
     $50,000 or imprisoned for not more than 2 years, or both.
       (d) User Fees.--
       (1) In general.--The Director of the Federal Bureau of 
     Investigation may--
       (A) collect fees pursuant to regulations promulgated under 
     subsection (b) to process background checks provided for by 
     this Act;
       (B) notwithstanding the provisions of section 3302 of title 
     31, United States Code, retain and use such fees for salaries 
     and other expenses incurred in providing such processing; and
       (C) establish such fees at a level to include an additional 
     amount to remain available until expended to defray expenses 
     for the automation of fingerprint identification and criminal 
     justice information services and associated costs.
       (2) State costs.--Nothing in this Act shall be construed as 
     restricting the right of a State to assess a reasonable fee 
     on an authorized employer for the costs to the State of 
     administering this Act.
       (e) State Opt Out.--A State may decline to participate in 
     the background check system authorized by this Act by 
     enacting a law providing that the State is declining to 
     participate pursuant to this subsection.
       (f) State Standards and Information Provided to Employer.--
       (1) Absence of state standard.--If a State participates in 
     the background check system authorized by this Act and has no 
     State standard for qualification to be a private security 
     officer, the State shall notify an authorized employer 
     whether or not an employee has been convicted of a felony, an 
     offense involving dishonesty or false statement if the 
     conviction occurred during the previous 10 years, or an 
     offense involving the use or attempted use of physical force 
     against the person of another if the conviction occurred 
     during the previous 10 years.
       (2) State standard.--If a State participates in the 
     background check system authorized by this Act and has State 
     standards for qualification to be a private security officer, 
     the State shall use the information received pursuant to this 
     Act in applying the State standard and shall notify the 
     employer of the results.
                                 ______
                                 
      By Mr. SARBANES (for himself, Mr. Ensign, Mr. Schumer, Mr. 
        Corzine, Mr. Allard, Mr. Carper, Mr. Bunning, Mrs. Clinton, Mr. 
        Torricelli, and Mr. Santorum):
  S. 2239. A bill to amend the National Housing Act to simplify the 
downpayment requirements for FHA mortgage insurance for single family 
homebuyers; to the Committee on Banking, Housing, and Urban Affairs.
  Mr. SARBANES. Madam President, today I am introducing the ``FHA 
Downpayment Simplification Act of 2002'' with a number of my 
colleagues. As the list of original cosponsors indicates, this piece of 
legislation has broad, bipartisan support. This is because the Federal 
Housing Administration, FHA, has long been a tool to increase 
homeownership in America.
  Since its inception in 1934, the FHA has helped millions of American 
families achieve the dream of homeownership. Currently, FHA accounts 
for about 20 percent of the mortgage market. However, FHA is even more 
important to first time homebuyers, buyers with lower incomes, and 
minority homebuyers, many of whom have not been well served by the 
traditional marketplace. For these borrowers, FHA is the ticket to the 
American dream.
  Indeed, the very strong economy helped raise overall homeownership 
rates through the 1990s to historically high levels, both for the 
population as a whole and among underserved buyers. By 1999, 
homeownership increased to 66.8 percent. But it was the FHA that helped 
ensure those benefits were widely available.
  For example, according to data provided by the Department of Housing 
and Urban Development, HUD, first time homebuyers accounted for 82 
percent of all FHA loans in the year 2000; almost half of FHA-insured 
loans went to low-income borrowers in metropolitan areas; and over one-
third of FHA loans went to African-American and Hispanic borrowers. In 
each case, FHA played a more significant role than the conventional 
market.
  The role played by FHA in spreading the benefits of homeownership to 
a broader range of Americans is the central reason my colleagues and I 
believe it is important to renew and make permanent the law authorizing 
the streamlined downpayment calculation for all FHA single family 
insured loans. The streamlined downpayment, which is current law, was 
initially tried as a pilot in Hawaii and Alaska in 1996 before being 
extended nationwide in 1998. It was subsequently reauthorized again 
until the end of this year. Without Congressional action, the law will 
expire, resulting in higher costs for millions of Americans seeking the 
benefits of homeownership.
  The streamlined downpayment process, as its name implies, is 
relatively simple and straightforward. The buyer puts down at least 3 
percent of the acquisition cost of the home. The acquisition cost 
includes both the sales price and the closing costs. The old system 
required different downpayment rates for each portion of a mortgage. 
This approach is complex, multi-step calculation that often confused 
consumers, realtors, and lenders alike, and resulted in higher overall 
closing costs for the consumer.
  For example, for a property with a sales price of $150,000 and $3,000 
in closing costs, the streamlined approach that would be continued by 
this legislation would save the borrower almost

[[Page S3309]]

$2,200 in closing costs. For a more modest home costing $100,000 with 
$2,000 in closing costs, the savings would be about $350 over the old 
system.
  The streamlined FHA downpayment process has been working extremely 
well. That is why both the National Association of Realtors and the 
Mortgage Bankers Association of America support this legislation. 
Promoting homeownership is an important value that all of us have 
supported through the years. Passing this legislation is one way to 
help more and more Americans achieve this important goal.
  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. 2239

       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 ``FHA Downpayment 
     Simplification Act of 2002''.

     SEC. 2. DOWNPAYMENT SIMPLIFICATION.

       Section 203 of the National Housing Act (12 U.S.C. 1709) is 
     amended--
       (1) in subsection (b)--
       (A) by striking ``shall--'' and inserting ``shall comply 
     with the following:'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), in the matter that precedes clause 
     (ii), by moving the margin 2 ems to the right;
       (ii) in the undesignated matter immediately following 
     subparagraph (B)(iii)--

       (I) by striking the second and third sentences of such 
     matter; and
       (II) by striking the sixth sentence (relating to the 
     increases for costs of solar energy systems) and all that 
     follows through the end of the last undesignated paragraph 
     (relating to disclosure notice); and

       (iii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) not to exceed an amount equal to the sum of--
       ``(i) the amount of the mortgage insurance premium paid at 
     the time the mortgage is insured; and
       ``(ii) in the case of--

       ``(I) a mortgage for a property with an appraised value 
     equal to or less than $50,000, 98.75 percent of the appraised 
     value of the property;
       ``(II) a mortgage for a property with an appraised value in 
     excess of $50,000 but not in excess of $125,000, 97.65 
     percent of the appraised value of the property;
       ``(III) a mortgage for a property with an appraised value 
     in excess of $125,000, 97.15 percent of the appraised value 
     of the property; or
       ``(IV) notwithstanding subclauses (II) and (III), a 
     mortgage for a property with an appraised value in excess of 
     $50,000 that is located in an area of the State for which the 
     average closing cost exceeds 2.10 percent of the average, for 
     the State, of the sale price of properties located in the 
     State for which mortgages have been executed, 97.75 percent 
     of the appraised value of the property.'';

       (C) by transferring and inserting the text of paragraph 
     (10)(B) after the period at the end of the first sentence of 
     the undesignated paragraph that immediately follows paragraph 
     (2)(B) (relating to the definition of ``area''); and
       (D) by striking paragraph (10); and
       (2) by inserting after subsection (e), the following:
       ``(f) Disclosure of Other Mortgage Products.--
       ``(1) In general.--In conjunction with any loan insured 
     under this section, an original lender shall provide to each 
     prospective borrower a disclosure notice that provides a 1-
     page analysis of mortgage products offered by that lender and 
     for which the borrower would qualify.
       ``(2) Notice.--The notice required under paragraph (1) 
     shall include--
       ``(A) a generic analysis comparing the note rate (and 
     associated interest payments), insurance premiums, and other 
     costs and fees that would be due over the life of the loan 
     for a loan insured by the Secretary under subsection (b) with 
     the note rates, insurance premiums (if applicable), and other 
     costs and fees that would be expected to be due if the 
     mortgagor obtained instead other mortgage products offered by 
     the lender and for which the borrower would qualify with a 
     similar loan-to-value ratio in connection with a conventional 
     mortgage (as that term is used in section 305(a)(2) of the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)) or section 302(b)(2) of the Federal National 
     Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as 
     applicable), assuming prevailing interest rates; and
       ``(B) a statement regarding when the requirement of the 
     mortgagor to pay the mortgage insurance premiums for a 
     mortgage insured under this section would terminate, or a 
     statement that the requirement shall terminate only if the 
     mortgage is refinanced, paid off, or otherwise terminated.''.

     SEC. 3. CONFORMING AMENDMENTS.

       Section 245 of the National Housing Act (12 U.S.C. 1715z-
     10) is amended--
       (1) in subsection (a), by striking ``, or if the 
     mortgagor'' and all that follows through ``case of 
     veterans''; and
       (2) in subsection (b)(3), by striking ``, or, if the'' and 
     all that follows through ``for veterans,''.

  Mr. ENSIGN. Madam President, I rise today, along with the senior 
Senator from Maryland, Mr. Sarbanes, to introduce a bill that will help 
thousands of Americans achieve the dream of homeownership.
  Homeownership is the primary source of a household's net worth and 
the fundamental first step toward accumulating personal wealth. It is 
also one of the greatest driving forces to a healthy economy for our 
Nation. Congress must work hard to produce public policies that promote 
homeownership to further America's growth and prosperity. This 
legislation does just that.
  The legislation we are introducing today will make permanent an 
existing down payment simplification program that created a simplified 
formula to determine the proper down payment for FHA loans. This 
program has become an invaluable tool for helping thousands of families 
achieve the American dream of buying their first home. This bill will 
permanently eliminate the burdensome and unnecessary formulas 
previously used to determine the proper down payment for FHA loans, and 
will also lower the size of necessary down payments.
  The simplified calculation was begun as a pilot program in 1996 in 
Hawaii and Alaska. It proved so easy and successful that it was 
temporarily extended nationwide in 1998. In 2000, the calculation was 
re-extended 27 months, to December 31, 2002. Unless Congress extends 
the program, home buyers will be required to use the old, complicated 
and confusing method of calculating the appropriate down payment 
amounts for all loans after December 31.
  To help my colleagues understand the importance of making this 
program permanent, I should explain the basic difference between the 
two formulas.
  Under the down payment simplification program, FHA borrowers must 
make cash contributions of at least 3 percent of the acquisition cost, 
including closing costs of the loan. It is that simple.
  Under the old formula, different down payment rates were required for 
each portion of a mortgage. For example, if the acquisition cost of the 
home is $150,000, the borrower would have to pay 3 percent on the first 
$25,000, 5 percent on the next $100,000 and 10 percent on the final 
$25,000. And that's not all. There is also another set of calculations 
done based on the appraised value of the home to determine the maximum 
allowable mortgage in any transaction.
  Clearly, the streamlined formula is a far more simple process. In the 
end, the down payment simplification process results in lowering the 
amount of the down payment necessary to purchase a FHA single-family 
home and simplifies the formula for the homebuyer in the process.
  It is estimated that one-third of all FHA borrowers will have to make 
higher down payments if the simplification process is not made 
permanent. This could mean that without passage of this legislation, 
thousands of families that otherwise could afford to buy their homes 
will be denied the chance to do so because an unnecessarily complicated 
formula will create large, unaffordable down payments.
  The effects would be particularly acute in states where over 40 
percent of the buyers would be affected, such as California, Colorado, 
Maryland, New Jersey, New York, Virginia, Washington, Utah, 
Massachusetts, Minnesota, Nevada, Oregon, Connecticut, Alaska, Hawaii 
and New Hampshire.
  In 2001, in my home State of Nevada alone, over 16,600 families 
purchased a home with a FHA insured loan. Of those, all benefitted by 
having a more simple process to follow, while 6,761 homebuyers 
benefitted from the streamlined formula process with a lower down 
payment. That is an amazing amount of homes that may not have been 
purchased had this program not been in place.
  I ask my colleagues for their support of this important legislation. 
If passed, this legislation will help thousands of Americans throughout 
our country realize their dream of homeownership.
  In closing, I would like to thank the Senator from Maryland, Mr. 
Sarbanes, for all his hard work on this very important legislation. I 
appreciate his determination to make home ownership a reality for so 
many Americans.

[[Page S3310]]

                                 ______
                                 
      By Mr. LEAHY (for himself, Mr. Daschle, Mr. Torricelli, Mr. 
        Kennedy, Mr. Harkin, Mr. Bingaman, Mr. Feingold, and Mr. 
        Johnson):
  S. 2240. A bill to combat nursing home fraud and abuse, increase 
protections for victims of telemarketing fraud, enhance safeguards for 
pension plans and health care benefit programs, and enhance penalties 
for crimes against seniors, and for other purposes; to the Committee on 
the Judiciary.
  Mr. LEAHY. Madam President, today I am introducing the Seniors Safety 
Act of 2002, a bill to protect older Americans from crime. I am pleased 
to have Senators Daschle, Kennedy, Torricelli, Harkin, Bingaman, 
Feingold, and Johnson as cosponsors for this anti-crime bill.
  The Seniors Safety Act contains a comprehensive package of proposals 
to address the most prevalent crimes perpetrated against seniors, 
including proposals to reduce health care fraud and abuse, combat 
nursing home fraud and abuse, prevent telemarketing fraud, and 
safeguard pension and employee benefit plans from fraud, bribery, and 
graft. In addition, this legislation would help seniors obtain 
restitution if their pension plans are defrauded.
  Older Americans are the most rapidly growing population group in our 
society, making them an even more attractive target for criminals. The 
Department of Health and Human Services has predicted that the number 
of older Americans will grow from 13 percent of the U.S. population in 
2000 to 20 percent by 2030. In Vermont, seniors comprise about 12 
percent of the population, and it is expected that that number will 
increase to 20 percent by 2025.
  As the Nation's crime rates dropped dramatically during the 1990s, 
crime against seniors remained stubbornly resistant. This may be 
because elders are susceptible to more fraud crimes and fewer violent 
crimes than younger Americans. According to a 2000 Justice Department 
study, more than 9 out of 10 crimes committed against older Americans 
were property crimes, most especially theft. As our Nation addressed 
our violent crime problem, we did not take a comprehensive approach to 
deterring the crimes that so affect the elderly, like telemarketing 
fraud, health care fraud, and pension fraud. The Seniors Safety Act 
provides such a comprehensive approach, and I urge the Senate to do its 
part to make it law.
  The Seniors Safety Act instructs the U.S. Sentencing Commission to 
review current sentencing guidelines and, if appropriate, amend the 
guidelines to include the age of a crime victim as a criterion for 
determining whether a sentencing enhancement is proper. The bill also 
requires the Commission to review sentencing guidelines for health care 
benefit fraud, increases statutory penalties both for fraud resulting 
in serious injury or death and for bribery and graft in connection with 
employee benefit plans, and increases criminal and civil penalties for 
defrauding pension plans.
  One particular form of criminal activity, telemarketing fraud, 
disproportionately impacts Americans over the age of 50, who account 
for over a third of the estimated $40 billion lost to telemarketing 
fraud each year. The Seniors Safety Act continues the progress we made 
in the 105th Congress with passage of the Telemarketing Fraud 
Prevention Act and in the 106th Congress with the Protecting Seniors 
from Fraud Act, which included provisions from the Seniors Safety Act 
that I introduced in the last Congress. The legislation I introduce 
today addresses the problem of telemarketing fraud schemes that too 
often succeed in swindling seniors of their life savings. Some of these 
schemes are directed from outside the United States, making criminal 
prosecution more difficult.
  The act would provide the Attorney General with a new, significant 
crime-fighting tool to prevent telemarketing fraud. Specifically, the 
act would authorize the Attorney General to block or terminate 
telephone service to telephone facilities that are being used to 
conduct such fraudulent activities. The Justice Department could use 
this authority to disrupt telemarketing fraud schemes directed from 
foreign sources by cutting off the swindlers' telephone service. Even 
if the criminals manage to acquire a new telephone number, temporary 
interruptions will prevent some seniors from being victimized.
  The bill also establishes a ``Better Business Bureau''-style 
clearinghouse at the Federal Trade Commission to provide seniors, their 
families, and others who may be concerned about a telemarketer with 
information about prior fraud convictions and/or complaints against the 
particular company. In addition, the FTC would refer seniors and other 
consumers who believe they have been swindled to the appropriate law 
enforcement authorities.
  Criminal activity that undermines the safety and integrity of pension 
plans and health benefit programs threatens all Americans, but most 
especially those seniors who have relied on promised benefits in 
planning their retirements. Seniors who have worked faithfully and 
honestly for years should not reach their retirement years only to find 
that the funds they relied upon were stolen. This is a significant 
problem. According to the Attorney General's 1997 Annual Report, an 
interagency working group on pension abuse brought 70 criminal cases 
representing more than $90 million in losses to pension plans in 29 
districts around the country in 1997 alone.
  The Seniors Safety Act would add to the arsenal that Federal 
prosecutors have to prevent and punish fraud against retirement plans. 
Specifically, the Act would create new criminal and civil penalties for 
defrauding pension plans or obtaining money or property from such plans 
by means of false or fraudulent pretenses. In addition, the act would 
enhance penalties for bribery and graft in connection with employee 
benefit plans. The only people enjoying the benefits of pension plans 
should be the people who have worked hard to fund those plans, not 
crooks who get the money by fraud.
  Health care spending consists of about 15 percent of the gross 
national product, or more than $1 trillion each year. Estimated losses 
due to fraud and abuse are astronomical. A December 1998 report by the 
National Institute of Justice, NIJ, states that these losses ``may 
exceed 10 percent of annual health care spending, or $100 billion per 
year.''
  As more health care claims are processed electronically, without 
human involvement, more sophisticated computer-generated fraud schemes 
are surfacing. Some of these schemes generate thousands of false claims 
designed to pass through automated claims processing to payment, 
and result in the theft of millions of dollars from Federal and private 
health care programs. Defrauding Medicare, Medicaid and private health 
plans increases the financial burden on taxpayers and beneficiaries 
alike. In addition, some forms of fraud may result in inadequate 
medical care, harming patients' health as well. Unfortunately, the NIJ 
reports that many health care fraud schemes ``deliberately target 
vulnerable populations, such as the elderly or Alzheimer's patients, 
who are less willing or able to complain or alert law enforcement.''

  We saw a dramatic increase in criminal convictions for health care 
fraud cases during the 1990s. These cases included convictions for 
submitting false claims to Medicare, Medicaid, and private insurance 
plans; fake billings by foreign doctors; and needless prescriptions for 
durable medical equipment by doctors in exchange for kickbacks from 
manufacturers. In 1997 alone, $1.2 billion was awarded or negotiated as 
a result of criminal fines, civil settlements and judgments in health 
care fraud matters.
  We can and must do more. The Seniors Safety Act would allow the 
Attorney General to bring injunctive actions to stop false claims and 
illegal kickback schemes involving Federal health care programs. The 
bill would also provide law enforcement authorities with additional 
investigatory tools to uncover, investigate, and prosecute health care 
offenses in both criminal and civil proceedings.
  In addition, whistle-blowers who tip off law enforcement about health 
care fraud would be authorized under the Seniors Safety Act to seek 
court permission to review information obtained by the Government to 
enhance their assistance in False Claims Act lawsuits. Such qui tam, or 
whistle-blower, suits have dramatically enhanced the Government's 
ability to uncover health

[[Page S3311]]

care fraud. The act would allow whistle-blowers and their qui tam suits 
to become even more effective.
  Finally, the act would extend anti-fraud and anti-kickback safeguards 
to the Federal Employees Health Benefits program. These are all 
important steps that will help cut down on the enormous health care 
fraud losses.
  As life expectancies continue to increase, long-term care planning 
specialists estimate that over 40 percent of those turning 65 
eventually will need nursing home care, and that 20 percent of those 
seniors will spend 5 years or more in homes. Indeed, many of us already 
have experienced having our parents, family members or other loved ones 
spend time in a nursing home. We owe it to them and to ourselves to 
give the residents of nursing homes the best care they can get.
  The Justice Department has cited egregious examples of nursing homes 
that pocketed Medicare funds instead of providing residents with 
adequate care. In one case, five patients died as result of the 
inadequate provision of nutrition, wound care and diabetes management 
by three Pennsylvania nursing homes. Yet another death occurred when a 
patient, who was unable to speak, was placed in a scalding tub of 138-
degree water.
  This act provides additional peace of mind to residents of nursing 
homes and those of us who may have loved ones there by giving Federal 
law enforcement the authority to investigate and prosecute operators of 
nursing homes for willfully engaging in patterns of health and safety 
violations in the care of nursing home residents. The act also protects 
whistle-blowers from retaliation for reporting such violations.
  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. 2240

       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 ``Seniors 
     Safety Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.

               TITLE I--COMBATING CRIMES AGAINST SENIORS

Sec. 101. Enhanced sentencing penalties based on age of victim.
Sec. 102. Study and report on health care fraud sentences.
Sec. 103. Increased penalties for fraud resulting in serious injury or 
              death.
Sec. 104. Safeguarding pension plans from fraud and theft. 
Sec. 105. Additional civil penalties for defrauding pension plans. 
Sec. 106. Punishing bribery and graft in connection with employee 
              benefit plans.

                TITLE II--PREVENTING TELEMARKETING FRAUD

Sec. 201. Centralized complaint and consumer education service for 
              victims of telemarketing fraud.
Sec. 202. Blocking of telemarketing scams.

                TITLE III--PREVENTING HEALTH CARE FRAUD

Sec. 301. Injunctive authority relating to false claims and illegal 
              kickback schemes involving Federal health care programs.
Sec. 302. Authorized investigative demand procedures.
Sec. 303. Extending antifraud safeguards to the Federal employee health 
              benefits program.
Sec. 304. Grand jury disclosure.
Sec. 305. Increasing the effectiveness of civil investigative demands 
              in false claims investigations.

            TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

Sec. 401. Short title.
Sec. 402. Nursing home resident protection.

        TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

Sec. 501. Use of forfeited funds to pay restitution to crime victims 
              and regulatory agencies.
Sec. 502. Victim restitution.
Sec. 503. Bankruptcy proceedings not used to shield illegal gains from 
              false claims.
Sec. 504. Forfeiture for retirement offenses.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) The number of older Americans is rapidly growing in the 
     United States. According to the 2000 census, 21 percent of 
     the United States population is 55 years of age or older.
       (2) In 1997, 7 percent of victims of serious violent crime 
     were 50 years of age or older.
       (3) In 1997, 17.7 percent of murder victims were 55 years 
     of age or older.
       (4) According to the Department of Justice, persons 65 
     years of age and older experienced approximately 2,700,000 
     crimes a year between 1992 and 1997.
       (5) Older victims of violent crime are almost twice as 
     likely as younger victims to be raped, robbed, or assaulted 
     at or in their own homes.
       (6) Approximately half of all Americans who are 50 years of 
     age or older are afraid to walk alone at night in their own 
     neighborhoods.
       (7) Seniors over 50 years of age reportedly account for 37 
     percent of the estimated $40,000,000,000 in losses each year 
     due to telemarketing fraud.
       (8) A 1996 American Association of Retired Persons survey 
     of people 50 years of age and older showed that 57 percent 
     were likely to receive calls from telemarketers at least once 
     a week.
       (9) In 1998, Congress enacted legislation to provide for 
     increased penalties for telemarketing fraud that targets 
     seniors.
       (10) It has been estimated that--
       (A) approximately 43 percent of persons turning 65 years of 
     age can expect to spend some time in a long-term care 
     facility; and
       (B) approximately 20 percent can expect to spend 5 years or 
     more in a such a facility.
       (11) In 1997, approximately $82,800,000,000 was spent on 
     nursing home care in the United States and over half of this 
     amount was spent by the Medicaid and Medicare programs.
       (12) Losses to fraud and abuse in health care reportedly 
     cost the United States an estimated $100,000,000,000 in 1996.
       (13) The Inspector General for the Department of Health and 
     Human Services has estimated that about $12,600,000,000 in 
     improper Medicare benefit payments, due to inadvertent 
     mistake, fraud, and abuse were made during fiscal year 1998.
       (14) Incidents of health care fraud and abuse remain common 
     despite awareness of the problem.
       (b) Purposes.--The purposes of this Act are to--
       (1) combat nursing home fraud and abuse;
       (2) enhance safeguards for pension plans and health care 
     programs;
       (3) develop strategies for preventing and punishing crimes 
     that target or otherwise disproportionately affect seniors by 
     collecting appropriate data--
       (A) to measure the extent of crimes committed against 
     seniors; and
       (B) to determine the extent of domestic and elder abuse of 
     seniors; and
       (4) prevent and deter criminal activity, such as 
     telemarketing fraud, that results in economic and physical 
     harm against seniors, and ensure appropriate restitution.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Crime.--The term ``crime'' means any criminal offense 
     under Federal or State law.
       (2) Nursing home.--The term ``nursing home'' means any 
     institution or residential care facility defined as such for 
     licensing purposes under State law, or if State law does not 
     employ the term nursing home, the equivalent term or terms as 
     determined by the Secretary of Health and Human Services, 
     pursuant to section 1908(e) of the Social Security Act (42 
     U.S.C. 1396g(e)).
       (3) Senior.--The term ``senior'' means an individual who is 
     more than 55 years of age.

               TITLE I--COMBATING CRIMES AGAINST SENIORS

     SEC. 101. ENHANCED SENTENCING PENALTIES BASED ON AGE OF 
                   VICTIM.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994(p) of title 28, 
     United States Code, and in accordance with this section, the 
     United States Sentencing Commission (referred to in this 
     section as the ``Commission'') shall review and, if 
     appropriate, amend section 3A1.1(a) of the Federal sentencing 
     guidelines to include the age of a crime victim as one of the 
     criteria for determining whether the application of a 
     sentencing enhancement is appropriate.
       (b) Requirements.--In carrying out this section, the 
     Commission shall--
       (1) ensure that the Federal sentencing guidelines and the 
     policy statements of the Commission reflect the serious 
     economic and physical harms associated with criminal activity 
     targeted at seniors due to their particular vulnerability;
       (2) consider providing increased penalties for persons 
     convicted of offenses in which the victim was a senior in 
     appropriate circumstances;
       (3) consult with individuals or groups representing 
     seniors, law enforcement agencies, victims organizations, and 
     the Federal judiciary as part of the review described in 
     subsection (a);
       (4) ensure reasonable consistency with other Federal 
     sentencing guidelines and directives;
       (5) account for any aggravating or mitigating circumstances 
     that may justify exceptions, including circumstances for 
     which the Federal sentencing guidelines provide sentencing 
     enhancements;
       (6) make any necessary conforming changes to the Federal 
     sentencing guidelines; and
       (7) ensure that the Federal sentencing guidelines 
     adequately meet the purposes of sentencing set forth in 
     section 3553(a)(2) of title 18, United States Code.

[[Page S3312]]

       (c) Report.--Not later than December 31, 2002, the 
     Commission shall submit to Congress a report on issues 
     relating to the age of crime victims, which shall include--
       (1) an explanation of any changes to sentencing policy made 
     by the Commission under this section; and
       (2) any recommendations of the Commission for retention or 
     modification of penalty levels, including statutory penalty 
     levels, for offenses involving seniors.

     SEC. 102. STUDY AND REPORT ON HEALTH CARE FRAUD SENTENCES.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994(p) of title 28, 
     United States Code, and in accordance with this section, the 
     United States Sentencing Commission (referred to in this 
     section as the ``Commission'') shall review and, if 
     appropriate, amend the Federal sentencing guidelines and the 
     policy statements of the Commission with respect to persons 
     convicted of offenses involving fraud in connection with a 
     health care benefit program (as defined in section 24(b) of 
     title 18, United States Code).
       (b) Requirements.--In carrying out this section, the 
     Commission shall--
       (1) ensure that the Federal sentencing guidelines and the 
     policy statements of the Commission reflect the serious harms 
     associated with health care fraud and the need for aggressive 
     and appropriate law enforcement action to prevent such fraud;
       (2) consider providing increased penalties for persons 
     convicted of health care fraud in appropriate circumstances;
       (3) consult with individuals or groups representing victims 
     of health care fraud, law enforcement agencies, the health 
     care industry, and the Federal judiciary as part of the 
     review described in subsection (a);
       (4) ensure reasonable consistency with other Federal 
     sentencing guidelines and directives;
       (5) account for any aggravating or mitigating circumstances 
     that might justify exceptions, including circumstances for 
     which the Federal sentencing guidelines provide sentencing 
     enhancements;
       (6) make any necessary conforming changes to the Federal 
     sentencing guidelines; and
       (7) ensure that the Federal sentencing guidelines 
     adequately meet the purposes of sentencing as set forth in 
     section 3553(a)(2) of title 18, United States Code.
       (c) Report.--Not later than December 31, 2002, the 
     Commission shall submit to Congress a report on issues 
     relating to offenses described in subsection (a), which shall 
     include--
       (1) an explanation of any changes to sentencing policy made 
     by the Commission under this section; and
       (2) any recommendations of the Commission for retention or 
     modification of penalty levels, including statutory penalty 
     levels, for those offenses.

     SEC. 103. INCREASED PENALTIES FOR FRAUD RESULTING IN SERIOUS 
                   INJURY OR DEATH.

       Sections 1341 and 1343 of title 18, United States Code, are 
     each amended by inserting before the last sentence the 
     following: ``If the violation results in serious bodily 
     injury (as defined in section 1365), such person shall be 
     fined under this title, imprisoned not more than 20 years, or 
     both, and if the violation results in death, such person 
     shall be fined under this title, imprisoned for any term of 
     years or life, or both.''.

     SEC. 104. SAFEGUARDING PENSION PLANS FROM FRAUD AND THEFT.

       (a) In General.--Chapter 63 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1348. Fraud in relation to retirement arrangements

       ``(a) Definition.--
       ``(1) Retirement arrangement.--In this section, the term 
     `retirement arrangement' means--
       ``(A) any employee pension benefit plan subject to any 
     provision of title I of the Employee Retirement Income 
     Security Act of 1974;
       ``(B) any qualified retirement plan within the meaning of 
     section 4974(c) of the Internal Revenue Code of 1986;
       ``(C) any medical savings account described in section 220 
     of the Internal Revenue Code of 1986; or
       ``(D) a fund established within the Thrift Savings Fund by 
     the Federal Retirement Thrift Investment Board pursuant to 
     subchapter III of chapter 84 of title 5.
       ``(2) Certain arrangements included.--The term `retirement 
     arrangement' shall include any arrangement that has been 
     represented to be an arrangement described in any 
     subparagraph of paragraph (1) (whether or not so described).
       ``(3) Exception for governmental plan.--Except as provided 
     in paragraph (1)(D), the term `retirement arrangement' shall 
     not include any governmental plan (as defined in section 
     3(32) of title I of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1002(32))).
       ``(b) Prohibition and Penalties.--Whoever executes, or 
     attempts to execute, a scheme or artifice--
       ``(1) to defraud any retirement arrangement or other person 
     in connection with the establishment or maintenance of a 
     retirement arrangement; or
       ``(2) to obtain, by means of false or fraudulent pretenses, 
     representations, or promises, any of the money or property 
     owned by, or under the custody or control of, any retirement 
     arrangement or other person in connection with the 
     establishment or maintenance of a retirement arrangement;

     shall be fined under this title, imprisoned not more than 10 
     years, or both.
       ``(c) Enforcement.--
       ``(1) In general.--Subject to paragraph (2), the Attorney 
     General may investigate any violation of, and otherwise 
     enforce, this section.
       ``(2) Effect on other authority.--Nothing in this 
     subsection may be construed to preclude the Secretary of 
     Labor or the head of any other appropriate Federal agency 
     from investigating a violation of this section in relation to 
     a retirement arrangement subject to title I of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
     seq.) or any other provision of Federal law.''.
       (b) Technical Amendment.--Section 24(a)(1) of title 18, 
     United States Code, is amended by inserting ``1348,'' after 
     ``1347,''.
       (c) Conforming Amendment.--The analysis for chapter 63 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``1348. Fraud in relation to retirement arrangements.''.

     SEC. 105. ADDITIONAL CIVIL PENALTIES FOR DEFRAUDING PENSION 
                   PLANS.

       (a) In General.--
       (1) Action by attorney general.--Except as provided in 
     subsection (b)--
       (A) the Attorney General may bring a civil action in the 
     appropriate district court of the United States against any 
     person who engages in conduct constituting an offense under 
     section 1348 of title 18, United States Code, or conspiracy 
     to violate such section 1348; and
       (B) upon proof of such conduct by a preponderance of the 
     evidence, such person shall be subject to a civil penalty in 
     an amount equal to the greatest of--
       (i) the amount of pecuniary gain to that person;
       (ii) the amount of pecuniary loss sustained by the victim; 
     or
       (iii) not more than--

       (I) $50,000 for each such violation in the case of an 
     individual; or
       (II) $100,000 for each such violation in the case of a 
     person other than an individual.

       (2) No effect on other remedies.--The imposition of a civil 
     penalty under this subsection does not preclude any other 
     statutory, common law, or administrative remedy available by 
     law to the United States or any other person.
       (b) Exception.--No civil penalty may be imposed pursuant to 
     subsection (a) with respect to conduct involving a retirement 
     arrangement that--
       (1) is an employee pension benefit plan subject to title I 
     of the Employee Retirement Income Security Act of 1974; and
       (2) for which the civil penalties may be imposed under 
     section 502 of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1132).
       (c) Determination of Penalty Amount.--In determining the 
     amount of the penalty under subsection (a), the district 
     court may consider the effect of the penalty on the violator 
     or other person's ability to--
       (1) restore all losses to the victims; or
       (2) provide other relief ordered in another civil or 
     criminal prosecution related to such conduct, including any 
     penalty or tax imposed on the violator or other person 
     pursuant to the Internal Revenue Code of 1986.

     SEC. 106. PUNISHING BRIBERY AND GRAFT IN CONNECTION WITH 
                   EMPLOYEE BENEFIT PLANS.

       (a) In General.--Section 1954 of title 18, United States 
     Code, is amended to read as follows:

     ``Sec. 1954. Bribery and graft in connection with employee 
       benefit plans

       ``(a) Definitions.--In this section--
       ``(1) the term `employee benefit plan' means any employee 
     welfare benefit plan or employee pension benefit plan subject 
     to any provision of title I of the Employee Retirement Income 
     Security Act of 1974;
       ``(2) the terms `employee organization', `administrator', 
     and `employee benefit plan sponsor' mean any employee 
     organization, administrator, or plan sponsor, as defined in 
     title I of the Employment Retirement Income Security Act of 
     1974; and
       ``(3) the term `applicable person' means--
       ``(A) an administrator, officer, trustee, custodian, 
     counsel, agent, or employee of any employee benefit plan;
       ``(B) an officer, counsel, agent, or employee of an 
     employer or an employer any of whose employees are covered by 
     such plan;
       ``(C) an officer, counsel, agent, or employee of an 
     employee organization any of whose members are covered by 
     such plan;
       ``(D) a person who, or an officer, counsel, agent, or 
     employee of an organization that, provides benefit plan 
     services to such plan; or
       ``(E) a person with actual or apparent influence or 
     decisionmaking authority in regard to such plan.
       ``(b) Bribery and Graft.--Whoever--
       ``(1) being an applicable person, receives or agrees to 
     receive or solicits, any fee, kickback, commission, gift, 
     loan, money, or thing of value, personally or for any other 
     person, because of or with the intent to be corruptly 
     influenced with respect to any action, decision, or duty of 
     that applicable person relating to any question or matter 
     concerning an employee benefit plan;
       ``(2) directly or indirectly, gives or offers, or promises 
     to give or offer, any fee, kickback, commission, gift, loan, 
     money, or

[[Page S3313]]

     thing of value, to any applicable person, because of or with 
     the intent to be corruptly influenced with respect to any 
     action, decision, or duty of that applicable person relating 
     to any question or matter concerning an employee benefit 
     plan; or
       ``(3) attempts to give, accept, or receive any thing of 
     value with the intent to be corruptly influenced in violation 
     of this section;

     shall be fined under this title, imprisoned not more than 5 
     years, or both.
       ``(c) Exceptions.--Nothing in this section may be construed 
     to apply to any--
       ``(1) payment to, or acceptance by, any person of bona fide 
     salary, compensation, or other payments made for goods or 
     facilities actually furnished or for services actually 
     performed in the regular course of his duties as an 
     applicable person; or
       ``(2) payment to, or acceptance in good faith by, any 
     employee benefit plan sponsor, or person acting on behalf of 
     the sponsor, of anything of value relating to the decision or 
     action of the sponsor to establish, terminate, or modify the 
     governing instruments of an employee benefit plan in a manner 
     that does not violate--
       ``(A) title I of the Employee Retirement Income Security 
     Act of 1974;
       ``(B) any regulation or order promulgated under title I of 
     the Employee Retirement Income Security Act of 1974; or
       ``(C) any other provision of law governing the plan.''.
       (b) Conforming Amendment.--The analysis for chapter 95 of 
     title 18, United States Code, is amended by striking the item 
     relating to section 1954 and inserting the following:

``1954. Bribery and graft in connection with employee benefit plans.''.

                TITLE II--PREVENTING TELEMARKETING FRAUD

     SEC. 201. CENTRALIZED COMPLAINT AND CONSUMER EDUCATION 
                   SERVICE FOR VICTIMS OF TELEMARKETING FRAUD.

       (a) Centralized Service.--
       (1) Requirement.--The Federal Trade Commission shall, after 
     consultation with the Attorney General, establish procedures 
     to--
       (A) log and acknowledge the receipt of complaints by 
     individuals who certify that they have a reasonable belief 
     that they have been the victim of fraud in connection with 
     the conduct of telemarketing (as that term is defined in 
     section 2325 of title 18, United States Code, as amended by 
     section 202(a) of this Act);
       (B) provide to individuals described in subparagraph (A), 
     and to any other persons, information on telemarketing fraud, 
     including--
       (i) general information on telemarketing fraud, including 
     descriptions of the most common telemarketing fraud schemes;
       (ii) information on means of referring complaints on 
     telemarketing fraud to appropriate law enforcement agencies, 
     including the Director of the Federal Bureau of 
     Investigation, the attorneys general of the States, and the 
     national toll-free telephone number on telemarketing fraud 
     established by the Attorney General; and
       (iii) information, if available, on the number of 
     complaints of telemarketing fraud against particular 
     companies and any record of convictions for telemarketing 
     fraud by particular companies for which a specific request 
     has been made; and
       (C) refer complaints described in subparagraph (A) to 
     appropriate entities, including State consumer protection 
     agencies or entities and appropriate law enforcement 
     agencies, for potential law enforcement action.
       (2) Central location.--The service under the procedures 
     under paragraph (1) shall be provided at and through a single 
     site selected by the Commission for that purpose.
       (3) Commencement.--The Federal Trade Commission shall 
     commence carrying out the service not later than 1 year after 
     the date of enactment of this Act.
       (b) Creation of Fraud Conviction Database.--
       (1) Establishment.--The Attorney General shall establish 
     and maintain a computer database containing information on 
     the corporations and companies convicted of offenses for 
     telemarketing fraud under Federal and State law.
       (2) Database.--The database established under paragraph (1) 
     shall include a description of the type and method of the 
     fraud scheme for which each corporation or company covered by 
     the database was convicted.
       (3) Use of database.--The Attorney General shall make 
     information in the database available to the Federal Trade 
     Commission for purposes of providing information as part of 
     the service under subsection (a).
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 202. BLOCKING OF TELEMARKETING SCAMS.

       (a) Expansion of Scope of Telemarketing Fraud Subject to 
     Enhanced Criminal Penalties.--Section 2325(1) of title 18, 
     United States Code, is amended by striking ``telephone 
     calls'' and inserting ``wire communications utilizing a 
     telephone service''.
       (b) Blocking or Termination of Telephone Service Associated 
     With Telemarketing Fraud.--
       (1) In general.--Chapter 113A of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 2328. Blocking or termination of telephone service

       ``(a) Definitions.--In this section:
       ``(1) Reasonable notice to the subscriber.--
       ``(A) In general.--The term `reasonable notice to the 
     subscriber', in the case of a subscriber of a common carrier, 
     means any information necessary to provide notice to the 
     subscriber that--
       ``(i) the wire communications facilities furnished by the 
     common carrier may not be used for the purpose of 
     transmitting, receiving, forwarding, or delivering a wire 
     communication in interstate or foreign commerce for the 
     purpose of executing any scheme or artifice to defraud in 
     connection with the conduct of telemarketing; and
       ``(ii) such use constitutes sufficient grounds for the 
     immediate discontinuance or refusal of the leasing, 
     furnishing, or maintaining of the facilities to or for the 
     subscriber.
       ``(B) Included matter.--The term includes any tariff filed 
     by the common carrier with the Federal Communications 
     Commission that contains the information specified in 
     subparagraph (A).
       ``(2) Wire communication.--The term `wire communication' 
     has the same meaning given that term in section 2510(1).
       ``(3) Wire communications facility.--The term `wire 
     communications facility' means any facility (including 
     instrumentalities, personnel, and services) used by a common 
     carrier for purposes of the transmission, receipt, 
     forwarding, or delivery of wire communications.
       ``(b) Blocking or Terminating Telephone Service.--If a 
     common carrier subject to the jurisdiction of the Federal 
     Communications Commission is notified in writing by the 
     Attorney General, acting within the jurisdiction of the 
     Attorney General, that any wire communications facility 
     furnished by that common carrier is being used or will be 
     used by a subscriber for the purpose of transmitting or 
     receiving a wire communication in interstate or foreign 
     commerce for the purpose of executing any scheme or artifice 
     to defraud, or for obtaining money or property by means of 
     false or fraudulent pretenses, representations, or promises, 
     in connection with the conduct of telemarketing, the common 
     carrier shall discontinue or refuse the leasing, furnishing, 
     or maintaining of the facility to or for the subscriber after 
     reasonable notice to the subscriber.
       ``(c) Prohibition on Damages.--No damages, penalty, or 
     forfeiture, whether civil or criminal, shall be found or 
     imposed against any common carrier for any act done by the 
     common carrier in compliance with a notice received from the 
     Attorney General under this section.
       ``(d) Relief.--
       ``(1) In general.--Nothing in this section may be construed 
     to prejudice the right of any person affected thereby to 
     secure an appropriate determination, as otherwise provided by 
     law, in a Federal court, that--
       ``(A) the leasing, furnishing, or maintaining of a facility 
     should not be discontinued or refused under this section; or
       ``(B) the leasing, furnishing, or maintaining of a facility 
     that has been so discontinued or refused should be restored.
       ``(2) Supporting information.--In any action brought under 
     this subsection, the court may direct that the Attorney 
     General present evidence in support of the notice made under 
     subsection (b) to which such action relates.''.
       (2) Conforming amendment.--The analysis for chapter 113A of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``2328. Blocking or termination of telephone service.''.

                TITLE III--PREVENTING HEALTH CARE FRAUD

     SEC. 301. INJUNCTIVE AUTHORITY RELATING TO FALSE CLAIMS AND 
                   ILLEGAL KICKBACK SCHEMES INVOLVING FEDERAL 
                   HEALTH CARE PROGRAMS.

       (a) In General.--Section 1345(a) of title 18, United States 
     Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``, or'' and inserting 
     a semicolon;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(D) committing or about to commit an offense under 
     section 1128B of the Social Security Act (42 U.S.C. 1320a-
     7b),''; and
       (2) in paragraph (2), by inserting ``a violation of 
     paragraph (1)(D), or'' before ``a banking''.
       (b) Civil Actions.--
       (1) In general.--Section 1128B of the Social Security Act 
     (42 U.S.C. 1320a-7b) is amended by adding at the end the 
     following:
       ``(g) Civil Actions.--
       ``(1) In general.--The Attorney General may bring an action 
     in the appropriate district court of the United States to 
     impose upon any person who carries out any activity in 
     violation of this section with respect to a Federal health 
     care program a civil penalty of not more than $50,000 for 
     each such violation, or damages of 3 times the total 
     remuneration offered, paid, solicited, or received, whichever 
     is greater.
       ``(2) Existence of violation.--A violation exists under 
     paragraph (1) if 1 or more purposes of the remuneration is 
     unlawful, and the damages shall be the full amount of such 
     remuneration.
       ``(3) Procedures.--An action under paragraph (1) shall be 
     governed by--
       ``(A) the procedures with regard to subpoenas, statutes of 
     limitations, standards of proof, and collateral estoppel set 
     forth in section 3731 of title 31, United States Code; and

[[Page S3314]]

       ``(B) the Federal Rules of Civil Procedure.
       ``(4) No effect on other remedies.--Nothing in this section 
     may be construed to affect the availability of any other 
     criminal or civil remedy.
       ``(h) Injunctive Relief.--The Attorney General may commence 
     a civil action in an appropriate district court of the United 
     States to enjoin a violation of this section, as provided in 
     section 1345 of title 18, United States Code.''.
       (2) Conforming amendment.--The heading of section 1128B of 
     the Social Security Act (42 U.S.C. 1320a-7b) is amended by 
     inserting ``AND CIVIL'' after ``CRIMINAL''.

     SEC. 302. AUTHORIZED INVESTIGATIVE DEMAND PROCEDURES.

       Section 3486 of title 18, United States Code, is amended--
       (1) in subsection (a), by inserting ``, or any allegation 
     of fraud or false claims (whether criminal or civil) in 
     connection with a Federal health care program (as defined in 
     section 1128B(f) of the Social Security Act (42 U.S.C. 1320a-
     7b(f))),'' after ``Federal health care offense'' each place 
     it appears; and
       (2) by adding at the end the following:
       ``(f) Privacy Protection.--
       ``(1) In general.--Except as provided in paragraph (2), any 
     record (including any book, paper, document, electronic 
     medium, or other object or tangible thing) produced pursuant 
     to a subpoena issued under this section that contains 
     personally identifiable health information may not be 
     disclosed to any person, except pursuant to a court order 
     under subsection (e)(1).
       ``(2) Exceptions.--A record described in paragraph (1) may 
     be disclosed--
       ``(A) to an attorney for the Government for use in the 
     performance of the official duty of the attorney (including 
     presentation to a Federal grand jury);
       ``(B) to government personnel (including personnel of a 
     State or subdivision of a State) as are determined to be 
     necessary by an attorney for the Government to assist an 
     attorney for the Government in the performance of the 
     official duty of that attorney to enforce Federal criminal 
     law;
       ``(C) as directed by a court preliminarily to, or in 
     connection with, a judicial proceeding;
       ``(D) as permitted by a court at the request of a defendant 
     in an administrative, civil, or criminal action brought by 
     the United States, upon a showing that grounds may exist for 
     a motion to exclude evidence obtained under this section; or
       ``(E) at the request of an attorney for the Government, 
     upon a showing that such matters may disclose a violation of 
     State criminal law, to an appropriate official of a State or 
     subdivision of a State for the purpose of enforcing such law.
       ``(3) Manner of court ordered disclosures.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     if a court orders the disclosure of any record described in 
     paragraph (1), the disclosure--
       ``(i) shall be made in such manner, at such time, and under 
     such conditions as the court may direct; and
       ``(ii) shall be undertaken in a manner that preserves the 
     confidentiality and privacy of individuals who are the 
     subject of the record.
       ``(B) Exception.--If disclosure is required by the nature 
     of the proceedings, the attorney for the Government shall 
     request that the presiding judicial or administrative officer 
     enter an order limiting the disclosure of the record to the 
     maximum extent practicable, including redacting the 
     personally identifiable health information from publicly 
     disclosed or filed pleadings or records.
       ``(4) Destruction of records.--Any record described in 
     paragraph (1), and all copies of that record, in whatever 
     form (including electronic), shall be destroyed not later 
     than 90 days after the date on which the record is produced, 
     unless otherwise ordered by a court of competent 
     jurisdiction, upon a showing of good cause.
       ``(5) Effect of violation.--Any person who knowingly fails 
     to comply with this subsection may be punished as in contempt 
     of court.
       ``(g) Personally Identifiable Health Information Defined.--
     In this section, the term `personally identifiable health 
     information' means any information, including genetic 
     information, demographic information, and tissue samples 
     collected from an individual, whether oral or recorded in any 
     form or medium, that--
       ``(1) relates to the past, present, or future physical or 
     mental health or condition of an individual, the provision of 
     health care to an individual, or the past, present, or future 
     payment for the provision of health care to an individual; 
     and
       ``(2) either--
       ``(A) identifies an individual; or
       ``(B) with respect to which there is a reasonable basis to 
     believe that the information can be used to identify an 
     individual.''.

     SEC. 303. EXTENDING ANTIFRAUD SAFEGUARDS TO THE FEDERAL 
                   EMPLOYEE HEALTH BENEFITS PROGRAM.

       Section 1128B(f)(1) of the Social Security Act (42 U.S.C. 
     1320a-7b(f)(1)) is amended by striking ``(other than the 
     health insurance program under chapter 89 of title 5, United 
     States Code)''.

     SEC. 304. GRAND JURY DISCLOSURE.

       Section 3322 of title 18, United States Code, is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Grand Jury Disclosure.--Subject to section 3486(f), 
     upon ex parte motion of an attorney for the Government 
     showing that a disclosure in accordance with that subsection 
     would be of assistance to enforce any provision of Federal 
     law, a court may direct the disclosure of any matter 
     occurring before a grand jury during an investigation of a 
     Federal health care offense (as defined in section 24(a) of 
     this title) to an attorney for the Government to use in any 
     investigation or civil proceeding relating to fraud or false 
     claims in connection with a Federal health care program (as 
     defined in section 1128B(f) of the Social Security Act (42 
     U.S.C. 1320a-7b(f))).''.

     SEC. 305. INCREASING THE EFFECTIVENESS OF CIVIL INVESTIGATIVE 
                   DEMANDS IN FALSE CLAIMS INVESTIGATIONS.

       Section 3733 of title 31, United States Code, is amended--
       (1) in subsection (a)(1), in the second sentence, by 
     inserting ``, except to the Deputy Attorney General or to an 
     Assistant Attorney General'' before the period at the end; 
     and
       (2) in subsection (i)(2)(C), by adding at the end the 
     following: ``Disclosure of information to a person who brings 
     a civil action under section 3730, or the counsel of that 
     person, shall be allowed only upon application to a United 
     States district court showing that such disclosure would 
     assist the Department of Justice in carrying out its 
     statutory responsibilities.''.

            TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Nursing Home Resident 
     Protection Act of 2002''.

     SEC. 402. NURSING HOME RESIDENT PROTECTION.

       (a) Protection of Residents in Nursing Homes and Other 
     Residential Health Care Facilities.--Chapter 63 of title 18, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 1349. Pattern of violations resulting in harm to 
       residents of nursing homes and related facilities

       ``(a) Definitions.--In this section:
       ``(1) Entity.--The term `entity' means--
       ``(A) any residential health care facility (including 
     facilities that do not exclusively provide residential health 
     care services);
       ``(B) any entity that manages a residential health care 
     facility; or
       ``(C) any entity that owns, directly or indirectly, a 
     controlling interest or a 50 percent or greater interest in 1 
     or more residential health care facilities including States, 
     localities, and political subdivisions thereof.
       ``(2) Federal health care program.--The term `Federal 
     health care program' has the same meaning given that term in 
     section 1128B(f) of the Social Security Act.
       ``(3) Pattern of violations.--The term `pattern of 
     violations' means multiple violations of a single Federal or 
     State law, regulation, or rule or single violations of 
     multiple Federal or State laws, regulations, or rules, that 
     are widespread, systemic, repeated, similar in nature, or 
     result from a policy or practice.
       ``(4) Residential health care facility.--The term 
     `residential health care facility' means any facility 
     (including any facility that does not exclusively provide 
     residential health care services), including skilled and 
     unskilled nursing facilities and mental health and mental 
     retardation facilities, that--
       ``(A) receives Federal funds, directly from the Federal 
     Government or indirectly from a third party on contract with 
     or receiving a grant or other monies from the Federal 
     Government, to provide health care; or
       ``(B) provides health care services in a residential 
     setting and, in any calendar year in which a violation 
     occurs, is the recipient of benefits or payments in excess of 
     $10,000 from a Federal health care program.
       ``(5) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     any commonwealth, territory, or possession of the United 
     States.
       ``(b) Prohibition and Penalties.--Whoever knowingly and 
     willfully engages in a pattern of violations that affects the 
     health, safety, or care of individuals residing in a 
     residential health care facility or facilities, and that 
     results in significant physical or mental harm to 1 or more 
     of such residents, shall be punished as provided in section 
     1347, except that any organization shall be fined not more 
     than $2,000,000 per residential health care facility.
       ``(c) Civil Provisions.--
       ``(1) In general.--The Attorney General may bring an action 
     in a district court of the United States to impose on any 
     individual or entity that engages in a pattern of violations 
     that affects the health, safety, or care of individuals 
     residing in a residential health care facility, and that 
     results in physical or mental harm to 1 or more such 
     residents--
       ``(A) a civil penalty; or
       ``(B) in the case of--
       ``(i) an individual (other than an owner, operator, 
     officer, or manager of such a residential health care 
     facility), not more than $10,000;
       ``(ii) an individual who is an owner, operator, officer, or 
     manager of such a residential health care facility, not more 
     than $100,000 for each separate facility involved in the 
     pattern of violations under this section;
       ``(iii) a residential health care facility, not more than 
     $1,000,000 for each pattern of violations; or

[[Page S3315]]

       ``(iv) an entity, not more than $1,000,000 for each 
     separate residential health care facility involved in the 
     pattern of violations owned or managed by that entity.
       ``(2) Other appropriate relief.--If the Attorney General 
     has reason to believe that an individual or entity is 
     engaging in or is about to engage in a pattern of violations 
     that would affect the health, safety, or care of individuals 
     residing in a residential health care facility, and that 
     results in or has the potential to result in physical or 
     mental harm to 1 or more such residents, the Attorney General 
     may petition an appropriate district court of the United 
     States for appropriate equitable and declaratory relief to 
     eliminate the pattern of violations.
       ``(3) Procedures.--In any action under this subsection--
       ``(A) a subpoena requiring the attendance of a witness at a 
     trial or hearing may be served at any place in the United 
     States;
       ``(B) the action may not be brought more than 6 years after 
     the date on which the violation occurred;
       ``(C) the United States shall be required to prove each 
     charge by a preponderance of the evidence;
       ``(D) the civil investigative demand procedures set forth 
     in the Antitrust Civil Process Act (15 U.S.C. 1311 et seq.) 
     and regulations promulgated pursuant to that Act shall apply 
     to any investigation; and
       ``(E) the filing or resolution of a matter shall not 
     preclude any other remedy that is available to the United 
     States or any other person.
       ``(d) Prohibition Against Retaliation.--Any person who is 
     the subject of retaliation, either directly or indirectly, 
     for reporting a condition that may constitute grounds for 
     relief under this section may bring an action in an 
     appropriate district court of the United States for damages, 
     attorneys' fees, and other relief.''.
       (b) Authorized Investigative Demand Procedures.--Section 
     3486(a)(1) of title 18, United States Code, as amended by 
     section 402 of this Act, is amended by inserting ``, act or 
     activity involving section 1349 of this title'' after 
     ``Federal health care offense''.
       (c) Conforming Amendment.--The analysis for chapter 63 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

``1349. Pattern of violations resulting in harm to residents of nursing 
              homes and related facilities.''.

        TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

     SEC. 501. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME 
                   VICTIMS AND REGULATORY AGENCIES.

       Section 981(e) of title 18, United States Code, is 
     amended--
       (1) in each of paragraphs (3), (4), and (5), by striking 
     ``in the case of property referred to in subsection 
     (a)(1)(C)'' and inserting ``in the case of property forfeited 
     in connection with an offense resulting in a pecuniary loss 
     to a financial institution or regulatory agency,''; and
       (2) in paragraph (7), by striking ``In the case of property 
     referred to in subsection (a)(1)(D)'' and inserting ``in the 
     case of property forfeited in connection with an offense 
     relating to the sale of assets acquired or held by any 
     Federal financial institution or regulatory agency, or person 
     appointed by such agency, as receiver, conservator, or 
     liquidating agent for a financial institution''.

     SEC. 502. VICTIM RESTITUTION.

       Section 413 of the Controlled Substances Act (21 U.S.C. 
     853) is amended by adding at the end the following:
       ``(r) Victim Restitution.--
       ``(1) Satisfaction of order of restitution.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a defendant may not use property subject to forfeiture under 
     this section to satisfy an order of restitution.
       ``(B) Exception.--If there are 1 or more identifiable 
     victims entitled to restitution from a defendant, and the 
     defendant has no assets other than the property subject to 
     forfeiture with which to pay restitution to the victim or 
     victims, the attorney for the Government may move to dismiss 
     a forfeiture allegation against the defendant before entry of 
     a judgment of forfeiture in order to allow the property to be 
     used by the defendant to pay restitution in whatever manner 
     the court determines to be appropriate if the court grants 
     the motion. In granting a motion under this subparagraph, the 
     court shall include a provision ensuring that costs 
     associated with the identification, seizure, management, and 
     disposition of the property are recovered by the United 
     States.
       ``(2) Restoration of forfeited property.--
       ``(A) In general.--If an order of forfeiture is entered 
     pursuant to this section and the defendant has no assets 
     other than the forfeited property to pay restitution to 1 or 
     more identifiable victims who are entitled to restitution, 
     the Government shall restore the forfeited property to the 
     victims pursuant to subsection (i)(1) once the ancillary 
     proceeding under subsection (n) has been completed and the 
     costs of the forfeiture action have been deducted.
       ``(B) Distribution of property.--On a motion of the 
     attorney for the Government, the court may enter any order 
     necessary to facilitate the distribution of any property 
     restored under this paragraph.
       ``(3) Victim defined.--In this subsection, the term 
     `victim'--
       ``(A) means a person other than a person with a legal 
     right, title, or interest in the forfeited property 
     sufficient to satisfy the standing requirements of subsection 
     (n)(2) who may be entitled to restitution from the forfeited 
     funds pursuant to section 9.8 of part 9 of title 28, Code of 
     Federal Regulations (or any successor to that regulation); 
     and
       ``(B) includes any person who is the victim of the offense 
     giving rise to the forfeiture, or of any offense that was 
     part of the same scheme, conspiracy, or pattern of criminal 
     activity, including, in the case of a money laundering 
     offense, any offense constituting the underlying specified 
     unlawful activity.''.

     SEC. 503. BANKRUPTCY PROCEEDINGS NOT USED TO SHIELD ILLEGAL 
                   GAINS FROM FALSE CLAIMS.

       (a) Certain Actions Not Stayed by Bankruptcy Proceedings.--
       (1) In general.--Notwithstanding any other provision of 
     law, the commencement or continuation of an action under 
     section 3729 of title 31, United States Code, does not 
     operate as a stay under section 105(a) or 362(a)(1) of title 
     11, United States Code.
       (2) Conforming amendment.--Section 362(b) of title 11, 
     United States Code, is amended--
       (A) in paragraph (17), by striking ``or'' at the end;
       (B) in paragraph (18), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(19) the commencement or continuation of an action under 
     section 3729 of title 31.''.
       (b) Certain Debts Not Dischargeable in Bankruptcy.--Section 
     523 of title 11, United States Code, is amended by adding at 
     the end the following:
       ``(f) A discharge under section 727, 1141, 1228(a), 
     1228(b), or 1328(b) does not discharge a debtor from a debt 
     owed for violating section 3729 of title 31.''.
       (c) Repayment of Certain Debts Considered Final.--
       (1) In general.--Chapter 1 of title 11, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 111. False claims

       ``No transfer on account of a debt owed to the United 
     States for violating section 3729 of title 31, or under a 
     compromise order or other agreement resolving such a debt may 
     be avoided under section 544, 545, 547, 548, 549, 553(b), or 
     742(a).''.
       (2) Conforming amendment.--The analysis for chapter 1 of 
     title 11, United States Code, is amended by adding at the end 
     the following:

``111. False claims.''.

     SEC. 504. FORFEITURE FOR RETIREMENT OFFENSES.

       (a) Criminal Forfeiture.--Section 982(a) of title 18, 
     United States Code, is amended by adding at the end the 
     following:
       ``(9) Criminal Forfeiture.--
       ``(A) In general.--The court, in imposing a sentence on a 
     person convicted of a retirement offense, shall order the 
     person to forfeit property, real or personal, that 
     constitutes or that is derived, directly or indirectly, from 
     proceeds traceable to the commission of the offense.
       ``(B) Retirement offense defined.--In this paragraph, if a 
     violation, conspiracy, or solicitation relates to a 
     retirement arrangement (as defined in section 1348 of title 
     18, United States Code), the term `retirement offense' means 
     a violation of--
       ``(i) section 664, 1001, 1027, 1341, 1343, 1348, 1951, 
     1952, or 1954 of title 18, United States Code; or
       ``(ii) section 411, 501, or 511 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1111, 1131, 1141).''.
       (b) Civil Forfeiture.--Section 981(a)(1) of title 18, 
     United States Code, is amended by adding at the end the 
     following:
       ``(H) Any property, real or personal, that constitutes or 
     is derived, directly or indirectly, from proceeds traceable 
     to the commission of, criminal conspiracy to violate, or 
     solicitation to commit a crime of violence involving, a 
     retirement offense (as defined in section 982(a)(9)(B)).''.

  Mr. TORRICELLI. Madam President, I am pleased to join Senators Leahy 
and Daschle today as an original cosponsor of the Seniors Safety Act, 
legislation that has been referred to as ``a new safety net for 
seniors.'' It is that, but it is also much more. Indeed, this bill is a 
potent weapon designed to track down and punish those criminals who 
would prey on the trust and good will of America's seniors. This bill 
puts crooks on notice that crimes against seniors, from violent 
assaults in the streets, to abuses in nursing homes, to frauds 
perpetrated over the telephone lines, will not be tolerated.
  Seniors represent the most rapidly growing sector of our population. 
In the next 50 years, the number of Americans over the age of 65 will 
more than double. Unless we take action now, the frequency and 
sophistication of crimes against seniors will likewise skyrocket. The 
Seniors Safety Act was developed to address, head-on, the crimes which 
most directly affect the senior community, including telemarketing 
fraud, and abuse and fraud in the health care and nursing home 
industries. It increases penalties and provides enhancements to the 
sentencing guidelines for criminals who target seniors. It protects 
seniors against the

[[Page S3316]]

illegal depletion of precious pension and employee benefit plan funds 
through fraud, graft, and bribery, and helps victimized seniors obtain 
restitution. And finally, this bill authorizes the Attorney General to 
study the problem of crime against seniors, and design new techniques 
to fight it.
  Criminal enterprises that engage in telemarketing fraud are some of 
the most insidious predators out there. Americans are fleeced out of 
over $40 billion dollars every year, and the effect on seniors is 
grossly disproportionate. According to the American Association of 
Retired Persons, ``The repeated victimization of the elderly is the 
cornerstone of illegal telemarketing.'' A study has found that 56 
percent of the names on the target lists of fraudulent telemarketers 
are those of Americans aged 50 or older. Of added concern is the fact 
that many of the perpetrators have migrated out of the United States 
for fear of prosecution, and continue to conduct their illegal 
activities from abroad.
  In one heartbreaking story, a recently-widowed New Jersey woman was 
bilked out of $200,000 by a deceitful telemarketing firm from Canada, 
who claimed that the woman had won a $150,000 sweepstakes, the prize 
could be hers, for a fee. A series of these calls followed, convincing 
this poor woman, already in a fragile mind-state after her husband's 
death, to send more and more money for what they claimed was an 
increasingly large prize, which, of course, never materialized.
  Our bill authorizes the Attorney General to effectively put these 
vultures, even the international criminals, out of business by blocking 
or terminating their U.S. telephone service. In addition, it authorizes 
the FTC to create a consumer clearinghouse which would provide seniors, 
and others who might have questions about the legitimacy of a telephone 
sales pitch, with information regarding prior complaints about a 
particular telemarketing company or prior fraud convictions. 
Furthermore, this clearinghouse would give seniors who may have been 
cheated an open channel to the appropriate law enforcement authorities.
  In 1997, older Americans were victimized by violent crime over 
680,000 times. The crimes against them range from simple assault, to 
armed robbery, to rape. While national crime rates in general are 
falling, seniors have not shared in the benefits of that drop.
  This Act singles out criminals who prey on the senior population and 
penalizes them for the physical and economic harm they cause. In 
addition, we intend to place this growing problem in the spotlight, and 
urge Congress and Federal and State law enforcement agencies to 
continue to develop solutions. To this end, we have authorized a 
comprehensive examination of crimes against seniors, and the inclusion 
of data on seniors in the National Crime Victims Survey.
  Seniors across the country have worked their entire lives, secure in 
the belief that their pensions and health benefits would be there to 
provide for them in their retirement years. Unfortunately, far too 
often, seniors wake up one morning to find that their hard-earned 
benefits have been stolen. In 1997 alone, $90 million in losses to 
pension funds were uncovered. Older Americans who depend on that money 
to live are left out in the cold, while criminals enjoy the fruits of a 
lifetime of our seniors' labor. The Seniors Safety Act gives Federal 
prosecutors another powerful weapon to punish pension fund thieves. The 
Act creates new civil and criminal penalties for defrauding pension of 
benefit plans, or obtaining money from them under false or fraudulent 
pretenses.
  The defrauding of Medicare, Medicaid, and private health insurers has 
become big business for criminals who prey on the elderly. According to 
a National Institutes of Health study, losses from fraud and abuse may 
exceed $100 billion per year. Overbilling and false claims filing have 
become rampant as automated claims processing is more prevalent. 
Similarly, the Department of Justice has noted numerous cases where 
unscrupulous nursing home operators have simply pocketed Medicare 
funds, rather than providing adequate care for their residents. In one 
horrendous case, five diabetic patient died from malnutrition and lack 
of medical care. In another, a patient was burned to death when a mute 
patient was placed by untrained staff in a tub of scalding water. These 
terrible abuses would never have occurred had the facilities spent the 
Federal funds they received to implement proper health and safety 
procedures. This bill goes after fraud and abuse by providing resources 
and tools for authorities to investigate and prosecute offenses in 
civil and criminal courts, and enhances the ability of the Justice 
Department to use evidence brought in by qui tam, whistleblower, 
plaintiffs.
  Together these provisions bring much-needed protections to our 
seniors. It sends a message to the cowardly perpetrators of fraud and 
other crimes against older Americans, that their actions will be 
fiercely prosecuted, whether they be here or abroad. And it clearly 
states that we refuse to allow seniors to be victimized by this most 
heinous form of predation.
                                 ______
                                 
      By Mr. DORGAN (for himself, Mr. Jeffords, Ms. Collins, Ms. 
        Stabenow, Ms. Snowe, Mr. Wellstone, Mr. Levin, and Mr. Dayton):
  S. 2244. A bill to permit commercial importation of prescription 
drugs from Canada, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. DORGAN. Madam President, today I am introducing the Prescription 
Drug Price Parity for Americans Act, along with my colleagues Senators 
Jeffords, Collins, Stabenow, Snowe, Wellstone, Levin, and Dayton. I 
intend to come to the floor later in the week to speak about this 
legislation at greater length, but I wanted to go ahead and introduce 
the bill today.
  This bill addresses a growing problem with prescription drug spending 
in our country. Spending on prescription drugs rose 17 percent in 2001, 
following on the heels of a nearly 19 percent increase in 2000 and a 16 
percent increase in 1999. Unfortunately, many Americans, especially 
senior citizens and the uninsured, cannot afford the substantially 
higher prices that they are being charged for their medicines. A 
prescription drug that costs $1 in the United States costs only 62 
cents in Canada, and that is just not fair.
  The bill I am introducing today would address this unfair pricing by 
injecting some price competition into the prescription drug 
marketplace. This legislation builds on the Medicine Equity and Drug 
Safety, MEDS, Act, which the Senate passed overwhelmingly in 2000 and 
was enacted into law. Like the MEDS Act, this bill would allow U.S.-
licensed pharmacists and drug wholesalers to import FDA-approved 
medicines, but unlike the 2000 law, this year's bill will be limited to 
approved drugs coming only from Canada. Canada has a drug approval and 
distribution system similarly strong to the U.S. system. I am very 
confident that this bill can be implemented immediately while ensuring 
the safety of our Nation's drug supply and significant cost savings for 
American consumers.
  Again, I look forward to coming back to the floor to describe this 
legislation at length at some later opportunity.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2244

       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 ``Prescription Drug Price 
     Parity for Americans Act''.

     SEC. 2. IMPORTATION OF PRESCRIPTION DRUGS.

       (a) In General.--Chapter VIII of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 381 et seq.) is amended by 
     striking section 804 and inserting the following:

     ``SEC. 804. IMPORTATION OF PRESCRIPTION DRUGS.

       ``(a) Definitions.--In this section:
       ``(1) Importer.--The term `importer' means a pharmacist or 
     wholesaler.
       ``(2) Pharmacist.--The term `pharmacist' means a person 
     licensed by a State to practice pharmacy, including the 
     dispensing and selling of prescription drugs.
       ``(3) Prescription drug.--The term `prescription drug' 
     means a drug subject to section 503(b), other than--
       ``(A) a controlled substance (as defined in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802));
       ``(B) a biological product (as defined in section 351 of 
     the Public Health Service Act (42 U.S.C. 262));
       ``(C) an infused drug (including a peritoneal dialysis 
     solution);

[[Page S3317]]

       ``(D) an intravenously injected drug; or
       ``(E) a drug that is inhaled during surgery.
       ``(4) Qualifying laboratory.--The term `qualifying 
     laboratory' means a laboratory in the United States that has 
     been approved by the Secretary for the purposes of this 
     section.
       ``(5) Wholesaler.--
       ``(A) In general.--The term `wholesaler' means a person 
     licensed as a wholesaler or distributor of prescription drugs 
     in the United States under section 503(e)(2)(A).
       ``(B) Exclusion.--The term `wholesaler' does not include a 
     person authorized to import drugs under section 801(d)(1).
       ``(b) Regulations.--The Secretary, after consultation with 
     the United States Trade Representative and the Commissioner 
     of Customs, shall promulgate regulations permitting 
     pharmacists and wholesalers to import prescription drugs from 
     Canada into the United States.
       ``(c) Limitation.--The regulations under subsection (b) 
     shall--
       ``(1) require that safeguards be in place to ensure that 
     each prescription drug imported under the regulations 
     complies with section 505 (including with respect to being 
     safe and effective for the intended use of the prescription 
     drug), with sections 501 and 502, and with other applicable 
     requirements of this Act;
       ``(2) require that an importer of a prescription drug under 
     the regulations comply with subsections (d)(1) and (e); and
       ``(3) contain any additional provisions determined by the 
     Secretary to be appropriate as a safeguard to protect the 
     public health or as a means to facilitate the importation of 
     prescription drugs.
       ``(d) Information and Records.--
       ``(1) In general.--The regulations under subsection (b) 
     shall require an importer of a prescription drug under 
     subsection (b) to submit to the Secretary the following 
     information and documentation:
       ``(A) The name and quantity of the active ingredient of the 
     prescription drug.
       ``(B) A description of the dosage form of the prescription 
     drug.
       ``(C) The date on which the prescription drug is shipped.
       ``(D) The quantity of the prescription drug that is 
     shipped.
       ``(E) The point of origin and destination of the 
     prescription drug.
       ``(F) The price paid by the importer for the prescription 
     drug.
       ``(G) Documentation from the foreign seller specifying--
       ``(i) the original source of the prescription drug; and
       ``(ii) the quantity of each lot of the prescription drug 
     originally received by the seller from that source.
       ``(H) The lot or control number assigned to the 
     prescription drug by the manufacturer of the prescription 
     drug.
       ``(I) The name, address, telephone number, and professional 
     license number (if any) of the importer.
       ``(J)(i) In the case of a prescription drug that is shipped 
     directly from the first foreign recipient of the prescription 
     drug from the manufacturer:
       ``(I) Documentation demonstrating that the prescription 
     drug was received by the recipient from the manufacturer and 
     subsequently shipped by the first foreign recipient to the 
     importer.
       ``(II) Documentation of the quantity of each lot of the 
     prescription drug received by the first foreign recipient 
     demonstrating that the quantity being imported into the 
     United States is not more than the quantity that was received 
     by the first foreign recipient.
       ``(III)(aa) In the case of an initial imported shipment, 
     documentation demonstrating that each batch of the 
     prescription drug in the shipment was statistically sampled 
     and tested for authenticity and degradation.
       ``(bb) In the case of any subsequent shipment, 
     documentation demonstrating that a statistically valid sample 
     of the shipment was tested for authenticity and degradation.
       ``(ii) In the case of a prescription drug that is not 
     shipped directly from the first foreign recipient of the 
     prescription drug from the manufacturer, documentation 
     demonstrating that each batch in each shipment offered for 
     importation into the United States was statistically sampled 
     and tested for authenticity and degradation.
       ``(K) Certification from the importer or manufacturer of 
     the prescription drug that the prescription drug--
       ``(i) is approved for marketing in the United States; and
       ``(ii) meets all labeling requirements under this Act.
       ``(L) Laboratory records, including complete data derived 
     from all tests necessary to ensure that the prescription drug 
     is in compliance with established specifications and 
     standards.
       ``(M) Documentation demonstrating that the testing required 
     by subparagraphs (J) and (L) was conducted at a qualifying 
     laboratory.
       ``(N) Any other information that the Secretary determines 
     is necessary to ensure the protection of the public health.
       ``(2) Maintenance by the secretary.--The Secretary shall 
     maintain information and documentation submitted under 
     paragraph (1) for such period of time as the Secretary 
     determines to be necessary.
       ``(e) Testing.--The regulations under subsection (b) shall 
     require--
       ``(1) that testing described in subparagraphs (J) and (L) 
     of subsection (d)(1) be conducted by the importer or by the 
     manufacturer of the prescription drug at a qualified 
     laboratory;
       ``(2) if the tests are conducted by the importer--
       ``(A) that information needed to--
       ``(i) authenticate the prescription drug being tested; and
       ``(ii) confirm that the labeling of the prescription drug 
     complies with labeling requirements under this Act;
     be supplied by the manufacturer of the prescription drug to 
     the pharmacist or wholesaler; and
       ``(B) that the information supplied under subparagraph (A) 
     be kept in strict confidence and used only for purposes of 
     testing or otherwise complying with this Act; and
       ``(3) may include such additional provisions as the 
     Secretary determines to be appropriate to provide for the 
     protection of trade secrets and commercial or financial 
     information that is privileged or confidential.
       ``(f) Registration of Foreign Sellers.--Any establishment 
     within Canada engaged in the distribution of a prescription 
     drug that is imported or offered for importation into the 
     United States shall register with the Secretary the name and 
     place of business of the establishment.
       ``(g) Suspension of Importation.--The Secretary shall 
     require that importations of a specific prescription drug or 
     importations by a specific importer under subsection (b) be 
     immediately suspended on discovery of a pattern of 
     importation of the prescription drugs or by the importer that 
     is counterfeit or in violation of any requirement under this 
     section, until an investigation is completed and the 
     Secretary determines that the public is adequately protected 
     from counterfeit and violative prescription drugs being 
     imported under subsection (b).
       ``(h) Approved Labeling.--The manufacturer of a 
     prescription drug shall provide an importer written 
     authorization for the importer to use, at no cost, the 
     approved labeling for the prescription drug.
       ``(i) Prohibition of Discrimination.--
       ``(1) In general.--It shall be unlawful for a manufacturer 
     of a prescription drug to discriminate against, or cause any 
     other person to discriminate against, a pharmacist or 
     wholesaler that purchases or offers to purchase a 
     prescription drug from the manufacturer or from any person 
     that distributes a prescription drug manufactured by the drug 
     manufacturer.
       ``(2) Discrimination.--For the purposes of paragraph (1), a 
     manufacturer of a prescription drug shall be considered to 
     discriminate against a pharmacist or wholesaler if the 
     manufacturer enters into a contract for sale of a 
     prescription drug, places a limit on supply, or employs any 
     other measure, that has the effect of--
       ``(A) providing pharmacists or wholesalers access to 
     prescription drugs on terms or conditions that are less 
     favorable than the terms or conditions provided to a foreign 
     purchaser (other than a charitable or humanitarian 
     organization) of the prescription drug; or
       ``(B) restricting the access of pharmacists or wholesalers 
     to a prescription drug that is permitted to be imported into 
     the United States under this section.
       ``(j) Charitable Contributions.--Notwithstanding any other 
     provision of this section, section 801(d)(1) continues to 
     apply to a prescription drug that is donated or otherwise 
     supplied at no charge by the manufacturer of the drug to a 
     charitable or humanitarian organization (including the United 
     Nations and affiliates) or to a government of a foreign 
     country.
       ``(k) Waiver Authority for Importation by Individuals.--
       ``(1) Declarations.--Congress declares that in the 
     enforcement against individuals of the prohibition of 
     importation of prescription drugs and devices, the Secretary 
     should--
       ``(A) focus enforcement on cases in which the importation 
     by an individual poses a significant threat to public health; 
     and
       ``(B) exercise discretion to permit individuals to make 
     such importations in circumstances in which--
       ``(i) the importation is clearly for personal use; and
       ``(ii) the prescription drug or device imported does not 
     appear to present an unreasonable risk to the individual.
       ``(2) Waiver authority.--
       ``(A) In general.--The Secretary may grant to individuals, 
     by regulation or on a case-by-case basis, a waiver of the 
     prohibition of importation of a prescription drug or device 
     or class of prescription drugs or devices, under such 
     conditions as the Secretary determines to be appropriate.
       ``(B) Guidance on case-by-case waivers.--The Secretary 
     shall publish, and update as necessary, guidance that 
     accurately describes circumstances in which the Secretary 
     will consistently grant waivers on a case-by-case basis under 
     subparagraph (A), so that individuals may know with the 
     greatest practicable degree of certainty whether a particular 
     importation for personal use will be permitted.
       ``(3) Drugs imported from canada.--In particular, the 
     Secretary shall by regulation grant individuals a waiver to 
     permit individuals to import into the United States a 
     prescription drug that--
       ``(A) is imported from a licensed pharmacy for personal use 
     by an individual, not for resale, in quantities that do not 
     exceed a 90-day supply;

[[Page S3318]]

       ``(B) is accompanied by a copy of a valid prescription;
       ``(C) is imported from Canada, from a seller registered 
     with the Secretary;
       ``(D) is a prescription drug approved by the Secretary 
     under chapter V;
       ``(E) is in the form of a final finished dosage that was 
     manufactured in an establishment registered under section 
     510; and
       ``(F) is imported under such other conditions as the 
     Secretary determines to be necessary to ensure public safety.
       ``(l) Studies; Reports.--
       ``(1) By the institute of medicine of the national academy 
     of sciences.--
       ``(A) Study.--
       ``(i) In general.--The Secretary shall request that the 
     Institute of Medicine of the National Academy of Sciences 
     conduct a study of--

       ``(I) importations of prescription drugs made under the 
     regulations under subsection (b); and
       ``(II) information and documentation submitted under 
     subsection (d).

       ``(ii) Requirements.--In conducting the study, the 
     Institute of Medicine shall--

       ``(I) evaluate the compliance of importers with the 
     regulations under subsection (b);
       ``(II) compare the number of shipments under the 
     regulations under subsection (b) during the study period that 
     are determined to be counterfeit, misbranded, or adulterated, 
     and compare that number with the number of shipments made 
     during the study period within the United States that are 
     determined to be counterfeit, misbranded, or adulterated; and
       ``(III) consult with the Secretary, the United States Trade 
     Representative, and the Commissioner of Patents and 
     Trademarks to evaluate the effect of importations under the 
     regulations under subsection (b) on trade and patent rights 
     under Federal law.

       ``(B) Report.--Not later than 2 years after the effective 
     date of the regulations under subsection (b), the Institute 
     of Medicine shall submit to Congress a report describing the 
     findings of the study under subparagraph (A).
       ``(2) By the comptroller general.--
       ``(A) Study.--The Comptroller General of the United States 
     shall conduct a study to determine the effect of this section 
     on the price of prescription drugs sold to consumers at 
     retail.
       ``(B) Report.--Not later than 18 months after the effective 
     date of the regulations under subsection (b), the Comptroller 
     General of the United States shall submit to Congress a 
     report describing the findings of the study under 
     subparagraph (A).
       ``(m) Construction.--Nothing in this section limits the 
     authority of the Secretary relating to the importation of 
     prescription drugs, other than with respect to section 
     801(d)(1) as provided in this section.
       ``(n) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
       (b) Conforming Amendments.--The Federal Food, Drug, and 
     Cosmetic Act is amended--
       (1) in section 301(aa) (21 U.S.C. 331(aa)), by striking 
     ``covered product in violation of section 804'' and inserting 
     ``prescription drug in violation of section 804'';
       (2) in section 303(a)(6) (21 U.S.C. 333(a)(6), by striking 
     ``covered product pursuant to section 804(a)'' and inserting 
     ``prescription drug under section 804(b)''.

  Mr. WELLSTONE. Madam President, I am glad we have the opportunity 
today to introduce legislation that corrects a sad injustice. This 
injustice makes American consumers the least likely of any in the 
industrialized world to be able to afford drugs manufactured by the 
American pharmaceutical industry. That's because of the unconscionable 
prices the industry charges only here in the United States.
  When I return to Minnesota which I do frequently, I meet with many 
constituents, but none with more compelling stories than senior 
citizens struggling to make ends meet because of the high cost of 
prescription drugs, life-saving drugs that are not covered under the 
Medicare program. Ten or twenty years ago these same senior citizens 
were going to work everyday, in the stores, and factories, and mines in 
Minnesota, earning an honest paycheck, and paying their taxes without 
protest. Now they wonder, how can this government, their government, 
stand by, when the medicines they need are out of reach.
  And it is not just that Medicare won't pay for these drugs. The 
unfairness which Minnesotans feel is exacerbated of course by the high 
cost of prescription drugs here in the United States, the same drugs 
that can be purchased for frequently half the price in Canada. These 
are the exact same drugs, manufactured in the exact same facilities 
with the exact same safety precautions.
  All the legislators speaking today have heard the first-hand stores 
from our constituents back home. Our constituents are justifiably 
frustrated and discouraged when they can't afford to buy prescription 
drugs that are made in the United States, unless they go across the 
border to Canada where those same drugs, manufactured in the same 
facilities are available for about half the price.
  Senior citizens have lost their patience in waiting for answers, and 
so have I. Driving to Canada every few months to buy prescription drugs 
at affordable prices isn't the solution; it's a symptom of how broken 
parts of our health care system are. Americans regardless of political 
party have a fundamental belief in fairness, and we know a rip-off when 
we see one. It is time to end that rip-off.
  While we can be proud of both American scientific research that 
produces new miracle cures and the high standards of safety and 
efficacy that we expect to be followed at the FDA, it is shameful that 
America's most vulnerable citizens, the chronically ill and the 
elderly, are being asked to pay the highest prices in the world here in 
the U.S. for the exact same medicines that are manufactured here but 
sold more cheaply in other countries.
  That is why I am introducing with my colleagues today the Medicine 
Equity and Drug Safety Act of 2002. This bill will amend the Food, 
Drug, and Cosmetic Act to allow American pharmacists and wholesalers to 
import prescription drugs from Canada into the United States, as long 
as the drugs meet FDA's strict safety standards. Pharmacists 
and wholesalers will be able to purchase these drugs, often 
manufactured right here in the U.S., at much lower prices and then pass 
those savings on to consumers. In addition, the bill would give 
individuals a waiver to import prescription drugs from Canada as long 
as the medicine is for their own personal use and the amount of 
medicine imported is a 90-day supply or less. This provision will give 
consumers confidence that, if they follow the rules for personal 
importation, they won't have to worry about their medicines being 
stopped at the border.

  Our bill addresses the absurd situation by which American consumers 
are paying substantially higher prices for their prescription drugs 
than are the citizens of Canada. The bill does not create any new 
Federal programs. Instead, it uses principles frequently cited in both 
houses of the Congress, principles of free trade and competition, the 
help make it possible for American consumers to purchase the 
prescription drugs they need.
  And the need is clear. A recent informal survey by the Minnesota 
Senior Federation on the price of six commonly used prescription 
medications showed that Minnesota consumers pay, on average, nearly 
double, 196 percent, what their Canadian counterparts pay. These 
excessive prices apply to drugs manufactured by U.S. pharmaceutical 
firms, the same drugs that are sold in Canada for a fraction of the 
U.S. price.
  Pharmacists could sell prescription drugs for less here in the United 
States, if they could buy and import these same drugs from Canada at 
lower prices than the pharmaceutical companies charge here.
  Now, however, Federal law allows only the manufacturer of a drug to 
import it into the U.S. Thus American pharmacists and wholesalers must 
pay the exorbitant prices charged by the pharmaceutical industry in the 
U.S. market and pass along those high prices to consumers. It is time 
to stop protecting the pharmaceutical industry's outrageous profits, 
and they are outrageous.
  Let's take a look at the numbers, so there can be no mistake:
  Where the average Fortune 500 industry in the United States returned 
2.2 percent profits as a percentage of revenue, the pharmaceutical 
industry returned 18.5 percent.
  Where the average Fortune 500 industry returned 2.5 percent profits 
as a percentage of their assets, the pharmaceutical industry returned 
16.5 percent.
  Where the average Fortune 500 industry returned less than 10 percent 
profits as a percentage of shareholders equity, the pharmaceutical 
industry returned 33.2 percent.
  Those huge profits are no surprise to America's senior citizens 
because they know where those profits come from, they come from their 
own pocketbooks. It is time to end the price gouging.
  We need legislation that can assure our senior citizens and all 
Americans

[[Page S3319]]

that safe and affordable prescription medications at last will be as 
available in the United States of America as they are in Canada. The 
bill we are introducing today accomplishes that end.
  I also want to point out that our bill includes important safety 
precautions to make sure we are not sacrificing safety for price. The 
safety measures provide strong protection for the American public. 
These protections include: Strict FDA oversight; importation from 
Canada only; strict handling requirements for importers, like those 
already in place for manufacturers; registration of Canadian 
pharmacists and wholesalers with the HHS Secretary; lab testing to 
screen out counterfeits; lab testing to ensure purity, potency, and 
safety of medications and; authority for the HHS Secretary to 
immediately suspend importation of prescription drugs that appear 
counterfeit or otherwise violate the law.
  The only thing that is not protected in this bill is the excessive 
profits of the pharmaceutical industry. My job as a United States 
Senator is not to protect profits but to protect the people. 
Colleagues, please join us and support this thoughtful and important 
bill that will help make prescription drugs affordable to the American 
people.

                          ____________________