[Congressional Record Volume 148, Number 58 (Thursday, May 9, 2002)]
[Senate]
[Pages S4147-S4165]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BIDEN (for himself, Mr. Helms, Mr. Kennedy, and Mr. 
        Frist):
  S. 2487. A bill to provide for global pathogen surveillance and 
response; to the Committee on Foreign Relations.
  Mr. BIDEN. Mr. President, Senator Helms and I are proud to introduce 
today the Global Pathogen Surveillance Act of 2002. Senator Helms is 
recovering from his heart surgery and is unable to be here today, but 
let me note our joint efforts in recognizing the importance of disease 
surveillance and preparing this bill for introduction. In recent years, 
we have joined forces on a number of sensible foreign policy 
initiatives and I am proud that we are doing so once again. I am also 
especially pleased that Senators Kennedy and Frist, the chairman and 
ranking member of the Public Health Subcommittee of the Senate Health, 
Education, Labor, and Pensions Committee, have also agreed to be 
original cosponsors of this bill.
  This bill authorizes $150 million over the next 2 years to provide 
assistance to developing nations to improve global disease surveillance 
to help prevent and contain both biological weapons attacks and 
naturally occurring infectious disease outbreaks around the world. As 
the ranking member and chairman of the Foreign Relations Committee, 
respectively, Senator Helms and I recognize all too well that 
biological weapons are a global threat with no respect for borders. A 
terrorist group could launch a biological weapons attack in Mexico in 
the expectation that the epidemic would quickly spread to the United 
States. A rogue state might experiment with new disease strains in 
another country, intending later to release them here. A biological 
weapons threat need not begin in the United States to reach our shores.
  For that reason, our response to the biological weapons threat cannot 
be limited to the United States alone. Global disease surveillance, a 
systematic approach to tracking disease outbreaks as they occur and 
evolve around the world, is essential to any real international 
response.
  This country is making enormous advances on the domestic front in 
bioterrorism defense. $3 billion has been appropriated for this purpose 
in FY 2002, including $1.1 billion to improve State and local public 
health infrastructure. Delaware's share will include $6.7 million from 
the Centers for Disease Control and Prevention to improve the public 
health infrastructure and $548,000 to improve hospital readiness in my 
State.
  The House and Senate are currently in conference to reconcile 
competing versions of a comprehensive bioterrorism bill drafted last 
fall following the anthrax attacks via the U.S. postal system. Those 
attacks, which killed five individuals and infected more than twenty 
people, highlighted our domestic vulnerabilities to a biological 
weapons attack. We need to further strengthen our Nation's public 
health system, improve Federal public health laboratories, and fund the 
necessary research and procurement for vaccines and treatments to 
respond better to future bioterrorist attacks. As an original co-
sponsor of the Senate bill, I know the final package taking shape in 
conference will achieve those goals and I look forward to its enactment 
into law.
  Nevertheless, any effective response to the challenge of biological 
weapons must also have an international component. Limiting our 
response to U.S. territory would be shortsighted and doomed to failure. 
A dangerous pathogen released on another continent can quickly spread 
to the United States in a matter of days, if not hours. This is the 
dark side of globalization. International trade, travel, and migration 
patterns offer unlimited opportunities for pathogens to spread across 
national borders and to move from one continent to another. Moreover, 
an overseas epidemic could give us our first warning of a new disease 
strain that was developed by a country or by terrorists for use as a 
biological weapon, or that could be used by others for that purpose.
  We should make no mistake: in today's world, all infectious disease 
epidemics, wherever they occur and whether they are deliberately 
engineered or are naturally occurring, are a potential threat to all 
nations, including the United States.
  How does disease surveillance fit into all of this? A biological 
weapons attack succeeds partly through the element of surprise. As Dr. 
Alan P. Zelicoff of the Sandia National Laboratory testified before the 
Foreign Relations Committee in March, early warning of a biological 
weapons attact can prevent illness and death in all but a small 
fraction of those infected. A cluster of flu-like symptoms in a city or 
region may be dismissed by individual physicians as just the flu when 
in fact it may be anthrax, plague, or another biological weapon. Armed 
with the knowledge, however, that a biological weapons attack has in 
fact occurred, doctors and nurses can examine their patients in a 
different light and, in many cases, effectively treat infected 
individuals.
  Disease surveillance, a comprehensive reporting system to quickly 
identify and communicate abnormal patterns of symptoms and illnesses, 
can quickly alert doctors across a region that a suspicious disease 
outbreak has occurred. Epidemiological specialists can then investigate 
and combat the outbreak. And if it's a new disease or strain, we can 
begin to develop treatments that much earlier.
  A good surveillance system requires trained epidemiological 
personnel, adequate laboratory tools for quick diagnosis, and 
communications equipment to circulate information. Even in the United 
States today, many States and localities rely on old-fashioned pencil 
and paper methods of tracking disease patterns. Thankfully, we are 
addressing those domestic deficiencies through the bioterrorism bill in 
conference.
  For example, in Delaware, we are developing the first, comprehensive, 
state-wide electronic reporting system for infectious diseases. This 
system will be used as a prototype for other states, and will enable 
much earlier detection of infectious disease outbreaks, both natural 
and bioterrorist. I and my congressional colleagues in the delegation 
have been working for over two years to get this project up and 
running, and we were successful in obtaining $2.6 million in funding 
for this

[[Page S4148]]

project over the past 2 years. I and my colleagues have requested $1.4 
million for additional funding in FY 2003, and we are extremely 
optimistic that this funding will be forthcoming.

  It is vitally important that we extend these initiatives into the 
international arena. However, as many developing countries are way 
behind us in terms of public health resources, laboratories, personnel, 
and communications, these countries will need help just to get to the 
starting point we have already reached in this country.
  An effective disease surveillance system is beneficial even in the 
absence of biological weapons attacks. Bubonic plague is bubonic 
plague, whether it is deliberately engineered or naturally occurring. 
Just as disease surveillance can help contain a biological weapons 
attack, it can also help contain a naturally occurring outbreak of 
infectious disease. According to the World Health Organization, 30 new 
infectious diseases have emerged over the past thirty years; between 
1996 and 2001 alone, more than 800 infectious disease outbreaks 
occurred around the world, on every continent. With better 
surveillance, we can do a better job of mitigating the consequences of 
these disease outbreaks.
  In 2000, the World Health Organization established the first truly 
global disease surveillance system, the Global Alert and Response 
Network, to monitor and track infectious disease outbreaks in every 
region of the world. The WHO has done an impressive job so far with 
this initiative, working on a shoestring budget. But this global 
network is only as good as its components, individual nations. 
Unfortunately, developing nations, those nations most likely to 
experience rapid disease outbreaks, simply do not possess the trained 
personnel, the laboratory equipment, or the public health 
infrastructure to track evolving disease patterns and detect emerging 
pathogens.
  According to a report by the National Intelligence Council, 
developing nations in Africa and Asia have established only rudimentary 
systems, if any at all, for disease surveillance, response, and 
prevention. The World Health Organization reports that more than sixty 
percent of laboratory equipment in developing countries is either 
outdated or non-functioning.
  This lack of preparedness can lead to tragic results. In August 1994 
in Surat, a city in western India, a surge of complaints on flea 
infestation and a growing rat population was followed by a cluster of 
reports on patients exhibiting the symptoms of pneumonic plague. 
However, authorities were unable to connect the dots until the plague 
had spread to seven states across India, ultimately killing 56 people 
and costing the Indian economy $600 million. Had the Indian authorities 
employed better surveillance tools, they may well have contained the 
epidemic, limited the loss of life, and surely avoided the panic that 
led to economically disastrous embargoes on trade and travel. An 
outbreak of pneumonic plague in India this February was detected more 
quickly and contained with only a few deaths, and no costly panic.
  Developing nations are the weak links in any comprehensive global 
disease surveillance network. Unless we take action to shore up their 
capabilities to detect and contain disease outbreaks, we leave the 
entire world vulnerable to a deliberate biological weapons attack or a 
virulent natural epidemic.
  It is for these reasons that Senator Helms and I have worked together 
in recent months to craft the Global Pathogen Surveillance Act of 2002. 
This bill will authorize $150 million in FY 2003 and FY 2004 to 
strengthen the disease surveillance capabilities of developing nations. 
First, the bill seeks to ensure in developing nations a greater number 
of personnel trained in basic epidemiological techniques. It offers 
enhanced in-country training for medical and laboratory personnel and 
the opportunity for select personnel to come to the United States to 
receive training in our Centers for Disease Control laboratories and 
Master of Public Health programs in American universities. Second, the 
bill provides assistance to developing nations to acquire basic 
laboratory equipment, including items as mundane as microscopes, to 
facilitate the quick diagnosis of pathogens. Third, the bill enables 
developing nations to obtain communications equipment to quickly 
transmit data on disease patterns and pathogen diagnoses, both inside a 
nation and to regional organizations and the WHO. Again, we're not 
talking about fancy high-tech equipment, but basics like fax machines 
and Internet-equipped computers. Finally, the bill gives preference to 
countries that agree to let experts from the United States or 
international organizations investigate any suspicious disease 
outbreaks.

  If passed, the Global Pathogen Surveillance Act of 2002 will go a 
long way in ensuring that developing nations acquire the basic disease 
surveillance capabilities to link up effectively with the WHO's global 
network. This bill offers an inexpensive and common sense solution to a 
problem of global proportions, the dual threat of biological weapons 
and naturally occurring infectious diseases. The funding authorized is 
only a tiny fraction of what we will spend domestically on bioterrorism 
defenses, but this investment will pay enormous dividends in terms of 
our national security.
  Let me close with an excerpt of testimony from the Foreign Relations 
Committee hearing last September on bioterrorism. Dr. D.A. Henderson, 
the man who spearheaded the successful international campaign to 
eradicate smallpox in the 1970's, recently stepped down from a short-
term position as the director of the Office of Emergency Preparedness 
in the Department of Health and Human Services. In that position, he 
was vested with the responsibility for helping organize the U.S. 
government's response to future bioterrorist attacks. Dr. Henderson, 
who at the time of the hearing was the head of the Johns Hopkins 
University Center for Civilian Biodefense Strategies, was very clear on 
the value of global disease surveillance:

       In cooperation with the WHO and other countries, we need to 
     strengthen greatly our intelligence gathering capability. A 
     focus on international surveillance and on scientist-to-
     scientist communication will be necessary if we are to have 
     an early warning about the possible development and 
     production of biological weapons by rogue nations or groups.

  Dr. Henderson is exactly right. We cannot leave the rest of the world 
to fend for itself in combating biological weapons and infectious 
diseases if we are to ensure America's security.

  I ask unanimous consent that the text of the Global Pathogen 
Surveillance Act of 2002 be printed in the the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2487

       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 ``Global Pathogen Surveillance 
     Act of 2002''.

     SEC. 2. FINDINGS; PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) Bioterrorism poses a grave national security threat to 
     the United States. The insidious nature of the threat, the 
     likely delayed recognition in the event of an attack, and the 
     underpreparedness of the domestic public health 
     infrastructure may produce catastrophic consequences 
     following a biological weapons attack upon the United States.
       (2) A contagious pathogen engineered as a biological weapon 
     and developed, tested, produced, or released in another 
     country can quickly spread to the United States. Given the 
     realities of international travel, trade, and migration 
     patterns, a dangerous pathogen released anywhere in the world 
     can spread to United States territory in a matter of days, 
     before any effective quarantine or isolation measures can be 
     implemented.
       (3) To effectively combat bioterrorism and ensure that the 
     United States is fully prepared to prevent, diagnose, and 
     contain a biological weapons attack, measures to strengthen 
     the domestic public health infrastructure and improve 
     domestic surveillance and monitoring, while absolutely 
     essential, are not sufficient.
       (4) The United States should enhance cooperation with the 
     World Health Organization, regional health organizations, and 
     individual countries to help detect and quickly contain 
     infectious disease outbreaks or bioterrorism agents before 
     they can spread.
       (5) The World Health Organization (WHO) has done an 
     impressive job in monitoring infectious disease outbreaks 
     around the world, particularly with the establishment in 
     April 2000 of the Global Outbreak Alert and Response network.
       (6) The capabilities of the World Health Organization are 
     inherently limited in that its

[[Page S4149]]

     disease surveillance and monitoring is only as good as the 
     data and information the World Health Organization receives 
     from member countries and are further limited by the narrow 
     range of diseases (plague, cholera, and yellow fever) upon 
     which its disease surveillance and monitoring is based, and 
     the consensus process used by the World Health Organization 
     to add new diseases to the list. Developing countries in 
     particular often cannot devote the necessary resources to 
     build and maintain public health infrastructures.
       (7) In particular, developing countries could benefit 
     from--
       (A) better trained public health professionals and 
     epidemiologists to recognize disease patterns;
       (B) appropriate laboratory equipment for diagnosis of 
     pathogens;
       (C) disease reporting that is based on symptoms and signs 
     (known as ``syndrome surveillance'') enabling the earliest 
     possible opportunity to conduct an effective response;
       (D) a narrowing of the existing technology gap in syndrome 
     surveillance capabilities, based on reported symptoms, and 
     real-time information dissemination to public health 
     officials; and
       (E) appropriate communications equipment and information 
     technology to efficiently transmit information and data 
     within national and regional health networks, including 
     inexpensive, Internet-based Geographic Information Systems 
     (GIS) for early recognition and diagnosis of diseases.
       (8) An effective international capability to monitor and 
     quickly diagnose infectious disease outbreaks will offer 
     dividends not only in the event of biological weapons 
     development, testing, production, and attack, but also in the 
     more likely cases of naturally occurring infectious disease 
     outbreaks that could threaten the United States. Furthermore, 
     a robust surveillance system will serve to deter terrorist 
     use of biological weapons, as early detection will help 
     mitigate the intended effects of such malevolent uses.
       (b) Purpose.--The purposes of this Act are as follows:
       (1) To enhance the capability of the international 
     community, through the World Health Organization and 
     individual countries, to detect, identify, and contain 
     infectious disease outbreaks, whether the cause of those 
     outbreaks is intentional human action or natural in origin.
       (2) To enhance the training of public health professionals 
     and epidemiologists from eligible developing countries in 
     advanced Internet-based syndrome surveillance systems, in 
     addition to traditional epidemiology methods, so that they 
     may better detect, diagnose, and contain infectious disease 
     outbreaks, especially those due to pathogens most likely to 
     be used in a biological weapons attack.
       (3) To provide assistance to developing countries to 
     purchase appropriate public health laboratory equipment 
     necessary for infectious disease surveillance and diagnosis.
       (4) To provide assistance to developing countries to 
     purchase appropriate communications equipment and information 
     technology, including appropriate computer equipment and 
     Internet connectivity mechanisms, to facilitate the exchange 
     of Geographic Information Systems-based syndrome surveillance 
     information and to effectively gather, analyze, and transmit 
     public health information for infectious disease surveillance 
     and diagnosis.
       (5) To make available greater numbers of United States 
     Government public health professionals to international 
     health organizations, regional health networks, and United 
     States diplomatic missions where appropriate.
       (6) To establish ``lab-to-lab'' cooperative relationships 
     between United States public health laboratories and 
     established foreign counterparts.
       (7) To expand the training and outreach activities of 
     overseas United States laboratories, including Centers for 
     Disease Control and Prevention and Department of Defense 
     entities, to enhance the public health capabilities of 
     developing countries.
       (8) To provide appropriate technical assistance to existing 
     regional health networks and, where appropriate, seed money 
     for new regional networks.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Eligible developing country.--The term ``eligible 
     developing country'' means any developing country that--
       (A) has agreed to the objective of fully complying with 
     requirements of the World Health Organization on reporting 
     public health information on outbreaks of infectious 
     diseases;
       (B) has not been determined by the Secretary, for purposes 
     of section 40 of the Arms Export Control Act (22 U.S.C. 
     2780), section 620A of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2371), or section 6(j) of the Export Administration 
     Act of 1979 (50 U.S.C. App. 2405), to have repeatedly 
     provided support for acts of international terrorism, unless 
     the Secretary exercises a waiver certifying that it is in the 
     national interest of the United States to provide assistance 
     under the provisions of this Act; and
       (C) is a state party to the Biological Weapons Convention.
       (2) Eligible national.--The term ``eligible national'' 
     means any citizen or national of an eligible developing 
     country who does not have a criminal background, who is not 
     on any immigration or other United States watch list, and who 
     is not affiliated with any foreign terrorist organization.
       (3) International health organization.--The term 
     ``international health organization'' includes the World 
     Health Organization and the Pan American Health Organization.
       (4) Laboratory.--The term ``laboratory'' means a facility 
     for the biological, microbiological, serological, chemical, 
     immuno-hematological, hematological, biophysical, 
     cytological, pathological, or other examination of materials 
     derived from the human body for the purpose of providing 
     information for the diagnosis, prevention, or treatment of 
     any disease or impairment of, or the assessment of the health 
     of, human beings.
       (5) Secretary.--Unless otherwise provided, the term 
     ``Secretary'' means the Secretary of State.
       (6) Select agent.--The term ``select agent'' has the 
     meaning given such term for purposes of section 72.6 of title 
     42, Code of Federal Regulations.
       (7) Syndrome surveillance.--The term ``syndrome 
     surveillance'' means the recording of symptoms (patient 
     complaints) and signs (derived from physical examination) 
     combined with simple geographic locators to track the 
     emergence of a disease in a population.

     SEC. 4. PRIORITY FOR CERTAIN COUNTRIES.

       Priority in the provision of United States assistance for 
     eligible developing countries under all the provisions of 
     this Act shall be given to those countries that permit 
     personnel from the World Health Organization and the Centers 
     for Disease Control and Prevention to investigate outbreaks 
     of infectious diseases on their territories.

     SEC. 5. RESTRICTION.

       Notwithstanding any other provision of this Act, no foreign 
     nationals participating in programs authorized under this Act 
     shall have access, during the course of such participation, 
     to select agents that may be used as, or in, a biological 
     weapon, except in a supervised and controlled setting.

     SEC. 6. FELLOWSHIP PROGRAM.

       (a) Establishment.--There is established a fellowship 
     program (in this section referred to as the ``program'') 
     under which the Secretary, in consultation with the Secretary 
     of Health and Human Services, and, subject to the 
     availability of appropriations, award fellowships to eligible 
     nationals of developing countries to pursue public health 
     education or training, as follows:
       (1) Master of public health degree.--Graduate courses of 
     study leading to a master of public health degree with a 
     concentration in epidemiology from an institution of higher 
     education in the United States with a Center for Public 
     Health Preparedness, as determined by the Centers for Disease 
     Control and Prevention.
       (2) Advanced public health epidemiology training.--Advanced 
     public health training in epidemiology for public health 
     professionals from eligible developing countries to be 
     carried out at the Centers for Disease Control and Prevention 
     (or equivalent State facility), or other Federal facility 
     (excluding the Department of Defense or United States 
     National Laboratories), for a period of not less than 6 
     months or more than 12 months.
       (b) Specialization in Bioterrorism.--In addition to the 
     education or training specified in subsection (a), each 
     recipient of a fellowship under this section (in this section 
     referred to as a ``fellow'') may take courses of study at the 
     Centers for Disease Control and Prevention or at an 
     equivalent facility on diagnosis and containment of likely 
     bioterrorism agents.
       (c) Fellowship Agreement.--
       (1) In general.--In awarding a fellowship under the 
     program, the Secretary, in consultation with the Secretary of 
     Health and Human Services, shall require the recipient to 
     enter into an agreement under which, in exchange for such 
     assistance, the recipient--
       (A) will maintain satisfactory academic progress (as 
     determined in accordance with regulations issued by the 
     Secretary and confirmed in regularly scheduled updates to the 
     Secretary from the institution providing the education or 
     training on the progress of the recipient's education or 
     training);
       (B) will, upon completion of such education or training, 
     return to the recipient's country of nationality or last 
     habitual residence (so long as it is an eligible developing 
     country) and complete at least four years of employment in a 
     public health position in the government or a 
     nongovernmental, not-for-profit entity in that country or, 
     with the approval of the Secretary and the government 
     concerned, in an international health organization; and
       (C) agrees that, if the recipient is unable to meet the 
     requirements described in subparagraph (A) or (B), the 
     recipient will reimburse the United States for the value of 
     the assistance provided to the recipient under the 
     fellowship, together with interest at a rate determined in 
     accordance with regulations issued by the Secretary but not 
     higher than the rate generally applied in connection with 
     other Federal loans.
       (2) Waivers.--The Secretary may waive the application of 
     paragraph (1)(B) and (1)(C) if the Secretary determines that 
     it is in the national interest of the United States to do so.
       (d) Implementation.--The Secretary, in consultation with 
     the Secretary of Health and Human Services, is authorized to 
     enter into an agreement with any eligible developing country 
     under which the developing country agrees--

[[Page S4150]]

       (1) to establish a procedure for the nomination of eligible 
     nationals for fellowships under this section;
       (2) to guarantee that a fellow will be offered a 
     professional public health position within the developing 
     country upon completion of his studies; and
       (3) to certify to the Secretary when a fellow has concluded 
     the minimum period of employment in a public health position 
     required by the fellowship agreement, with an explanation of 
     how the requirement was met.
       (e) Participation of United States Citizens.--On a case-by-
     case basis, the Secretary may provide for the participation 
     of United States citizens under the provisions of this 
     section if the Secretary determines that it is in the 
     national interest of the United States to do so. Upon 
     completion of such education or training, a United States 
     recipient shall complete at least five years of employment in 
     a public health position in an eligible developing country or 
     the World Health Organization.

     SEC. 7. IN-COUNTRY TRAINING IN LABORATORY TECHNIQUES AND 
                   SYNDROME SURVEILLANCE.

       (a) In General.--In conjunction with the Centers for 
     Disease Control and Prevention and the Department of Defense, 
     the Secretary shall, subject to the availability of 
     appropriations, support short training courses in-country 
     (not in the United States) to laboratory technicians and 
     other public health personnel (who are eligible persons) from 
     developing countries in laboratory techniques relating to the 
     identification, diagnosis, and tracking of pathogens 
     responsible for possible infectious disease outbreaks. 
     Training under this section may be conducted in overseas 
     facilities of the Centers for Disease Control and Prevention 
     or in Overseas Medical Research Units of the Department of 
     Defense, as appropriate. The Secretary shall coordinate such 
     training courses, where appropriate, with the existing 
     programs and activities of the World Health Organization.
       (b) Training in Syndrome Surveillance.--In conjunction with 
     the Centers for Disease Control and Prevention and the 
     Department of Defense, the Secretary shall, subject to the 
     availability of appropriations, establish and support short 
     training courses in-country (not in the United States) for 
     health care providers and other public health personnel from 
     eligible developing countries in techniques of syndrome 
     surveillance reporting and rapid analysis of syndrome 
     information using Geographic Information System (GIS) tools. 
     Training under this subsection may be conducted via the 
     Internet or in appropriate facilities as determined by the 
     Secretary. The Secretary shall coordinate such training 
     courses, where appropriate, with the existing programs and 
     activities of the World Health Organization.

     SEC. 8. ASSISTANCE FOR THE PURCHASE AND MAINTENANCE OF PUBLIC 
                   HEALTH LABORATORY EQUIPMENT.

       (a) Authorization.--The President is authorized, on such 
     terms and conditions as the President may determine, to 
     furnish assistance to eligible developing countries to 
     purchase and maintain public health laboratory equipment 
     described in subsection (b).
       (b) Equipment Covered.--Equipment described in this 
     subsection is equipment that is--
       (1) appropriate, where possible, for use in the intended 
     geographic area;
       (2) necessary to collect, analyze, and identify 
     expeditiously a broad array of pathogens, including mutant 
     strains, which may cause disease outbreaks or may be used as 
     a biological weapon;
       (3) compatible with general standards set forth by the 
     World Health Organization and, as appropriate, the Centers 
     for Disease Control and Prevention, to ensure 
     interoperability with regional and international public 
     health networks; and
       (4) not defense articles, defense services, or training as 
     defined under the Arms Export Control Act.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to exempt the exporting of goods and technology 
     from compliance with applicable provisions of the Export 
     Administration Act of 1979 (or successor statutes).
       (d) Limitation.--Amounts appropriated to carry out this 
     section shall not be made available for the purchase from a 
     foreign country of equipment that, if made in the United 
     States, would be subject to the Arms Export Control Act or 
     likely be barred or subject to special conditions under the 
     Export Administration Act of 1979 (or successor statutes).
       (e) Procurement Preference.--In the use of grant funds 
     authorized under subsection (a), preference should be given 
     to the purchase of equipment of United States manufacture. 
     The use of amounts appropriated to carry out this section 
     shall be subject to section 604 of the Foreign Assistance Act 
     of 1961.
       (f) Host Country's Commitments.--The assistance provided 
     under this section shall be contingent upon the host 
     country's commitment to provide the resources, 
     infrastructure, and other assets required to house, maintain, 
     support, secure, and maximize use of this equipment and 
     appropriate technical personnel.

     SEC. 9. ASSISTANCE FOR IMPROVED COMMUNICATION OF PUBLIC 
                   HEALTH INFORMATION.

       (a) Assistance for Purchase of Communication Equipment and 
     Information Technology.--The President is authorized to 
     provide, on such terms and conditions as the President may 
     determine, assistance to eligible developing countries for 
     the purchase and maintenance of communications equipment and 
     information technology described in subsection (b), and 
     supporting equipment, necessary to effectively collect, 
     analyze, and transmit public health information.
       (b) Covered Equipment.--Equipment described in this 
     subsection is equipment that--
       (1) is suitable for use under the particular conditions of 
     the area of intended use;
       (2) meets appropriate World Health Organization standards 
     to ensure interoperability with like equipment of other 
     countries and international organizations; and
       (3) is not defense articles, defense services, or training 
     as defined under the Arms Export Control Act.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to exempt the exporting of goods and technology 
     from compliance with applicable provisions of the Export 
     Administration Act of 1979 (or successor statutes).
       (d) Limitation.--Amounts appropriated to carry out this 
     section shall not be made available for the purchase from a 
     foreign country of equipment that, if made in the United 
     States, would be subject to the Arms Export Control Act or 
     likely be barred or subject to special conditions under the 
     Export Administration Act of 1979 (or successor statutes).
       (e) Procurement Preference.--In the use of grant funds 
     under subsection (a), preference should be given to the 
     purchase of communications (and information technology) 
     equipment of United States manufacture. The use of amounts 
     appropriated to carry out this section shall be subject to 
     section 604 of the Foreign Assistance Act of 1961.
       (f) Assistance for Standardization of Reporting.--The 
     President is authorized to provide, on such terms and 
     conditions as the President may determine, technical 
     assistance and grant assistance to international health 
     organizations (including regional international health 
     organizations) to facilitate standardization in the reporting 
     of public health information between and among developing 
     countries and international health organizations.
       (g) Host Country's Commitments.--The assistance provided 
     under this section shall be contingent upon the host 
     country's commitment to provide the resources, 
     infrastructure, and other assets required to house, support, 
     maintain, secure, and maximize use of this equipment and 
     appropriate technical personnel.

     SEC. 10. ASSIGNMENT OF PUBLIC HEALTH PERSONNEL TO UNITED 
                   STATES MISSIONS AND INTERNATIONAL 
                   ORGANIZATIONS.

       (a) In General.--Upon the request of a United States chief 
     of diplomatic mission or an international health 
     organization, and with the concurrence of the Secretary of 
     State, the head of a Federal agency may assign to the 
     respective United States mission or organization any officer 
     or employee of the agency occupying a public health position 
     within the agency for the purpose of enhancing disease and 
     pathogen surveillance efforts in developing countries.
       (b) Reimbursement.--The costs incurred by a Federal agency 
     by reason of the detail of personnel under subsection (a) may 
     be reimbursed to that agency out of the applicable 
     appropriations account of the Department of State if the 
     Secretary determines that the relevant agency may otherwise 
     be unable to assign such personnel on a non-reimbursable 
     basis.

     SEC. 11. LABORATORY-TO-LABORATORY EXCHANGE PROGRAM.

       (a) Authority.--The head of a Federal agency, with the 
     concurrence of the Secretary, is authorized to provide by 
     grant, contract, or otherwise for educational exchanges by 
     financing educational activities--
       (1) of United States public health personnel in approved 
     public health and research laboratories in eligible 
     developing countries; and
       (2) of public health personnel of eligible developing 
     countries in United States public health and research 
     laboratories.
       (b) Approved Public Health Laboratories Defined.--In this 
     section, the term ``approved public health and research 
     laboratories'' means non-United States Government affiliated 
     public health laboratories that the Secretary determines are 
     well-established and have a demonstrated record of 
     excellence.

     SEC. 12. EXPANSION OF CERTAIN UNITED STATES GOVERNMENT 
                   LABORATORIES ABROAD.

       (a) In General.--Subject to the availability of 
     appropriations, the Centers for Disease Control and 
     Prevention and the Department of Defense shall each--
       (1) increase the number of personnel assigned to 
     laboratories of the Centers or the Department, as 
     appropriate, located in eligible developing countries that 
     conduct research and other activities with respect to 
     infectious diseases; and
       (2) expand the operations of those laboratories, especially 
     with respect to the implementation of on-site training of 
     foreign nationals and activities affecting neighboring 
     countries.
       (b) Cooperation and Coordination between Laboratories.--
     Subsection (a) shall be carried out in such a manner as to 
     foster cooperation and avoid duplication between and among 
     laboratories.

[[Page S4151]]

       (c) Relation to Core Missions and Security.--The expansion 
     of the operations of overseas laboratories of the Centers or 
     the Department under this section shall not--
       (1) detract from the established core missions of the 
     laboratories; or
       (2) compromise the security of those laboratories, as well 
     as their research, equipment, expertise, and materials.

     SEC. 13. ASSISTANCE FOR REGIONAL HEALTH NETWORKS AND 
                   EXPANSION OF FOREIGN EPIDEMIOLOGY TRAINING 
                   PROGRAMS.

       (a) Authority.--The President is authorized, on such terms 
     and conditions as the President may determine, to provide 
     assistance for the purposes of--
       (1) enhancing the surveillance and reporting capabilities 
     for the World Health Organization and existing regional 
     health networks; and
       (2) developing new regional health networks.
       (b) Expansion of Foreign Epidemiology Training Programs.--
     The Secretary of Health and Human Services is authorized to 
     establish new country or regional Foreign Epidemiology 
     Training Programs in eligible developing countries.

     SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Appropriations.--
       (1) In general.--Subject to subsection (c), there are 
     authorized to be appropriated $70,000,000 for the fiscal year 
     2003 and $80,000,000 for fiscal year 2004, to carry out this 
     Act.
       (2) Allocation of funds.--Of the amounts made available 
     under paragraph (1)--
       (A) $50,000,000 for the fiscal year 2003 and $50,000,000 
     for the fiscal year 2004 are authorized to be available to 
     carry out sections 6, 7, 8, and 9;
       (B) not more than $2,000,000 shall be available for each of 
     the fiscal years 2003 and 2004 for the specific training 
     programs authorized in section 6, of which not more than 
     $500,000 shall be available to carry out subsection (a)(1) of 
     such section and not more than $1,500,000 shall be available 
     to carry out subsection (a)(2) of such section;
       (C) $5,000,000 for the fiscal year 2003 and $5,000,000 for 
     the fiscal year 2004 are authorized to be available to carry 
     out section 10;
       (D) $2,000,000 for the fiscal year 2003 and $2,000,000 for 
     the fiscal year 2004 are authorized to be available to carry 
     out section 11;
       (E) $8,000,000 for the fiscal year 2003 and $18,000,000 for 
     the fiscal year 2004 are authorized to be available to carry 
     out section 12; and
       (F) $5,000,000 for the fiscal year 2003 and $5,000,000 for 
     the fiscal year 2004 are authorized to be available to carry 
     out section 13.
       (b) Availability of Funds.--The amount appropriated 
     pursuant to subsection (a) is authorized to remain available 
     until expended.
       (c) Reporting Requirement.--
       (1) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall submit a report, 
     in conjunction with the Secretary of Health and Human 
     Services and the Secretary of Defense, containing--
       (A) a description of the implementation of programs under 
     this Act; and
       (B) an estimate of the level of funding required to carry 
     out those programs at a sufficient level.
       (2) Limitation on Obligation of Funds.--Not more than 10 
     percent of the amount appropriated pursuant to subsection (a) 
     may be obligated before the date on which a report is 
     submitted, or required to be submitted, whichever first 
     occurs, under paragraph (1).

  Mr. FRIST. Mr. President, I rise to join with my colleagues Senators 
Biden, Helms, and Kennedy in introducing the Global Pathogen 
Surveillance Act of 2002. This bipartisan legislation will help ensure 
that we are better prepared globally to deal with biological threats 
and attacks.
  The Global Pathogen Surveillance Act of 2002 authorizes enhanced 
bilateral and multilateral activities to improve the capacity of the 
United States and our partners in the international community to detect 
and contain infectious diseases and biological weapons. The Global 
Pathogen Surveillance Act will enhance the training, upgrade equipment 
and communications systems, and provide additional American expertise 
and assistance in international surveillance.
  To better prepare our nation to meet the growing threat of 
bioterrorism, we must put in place and maintain a comprehensive 
framework including prevention, preparedness and consequence 
management. To accomplish this goal, we not only need to strengthen our 
local public health infrastructure domestically, but to work with our 
friends and neighbors in the global community to prevent, detect, and 
appropriately contain and respond to bioterrorist activities outside 
our borders. This is truly a global responsibility. Infectious 
diseases, such as smallpox, do not respect borders. If we can prevent 
their spread in other countries around the world, we can better protect 
our citizens here at home.
  I applaud Senators Helms and Biden for their leadership in this area. 
I look forward to working with them, and all of my colleagues to ensure 
that we provide appropriate authorities and funding to improve our 
international efforts to detect and contain infectious diseases and 
offensive biological threats.
                                 ______
                                 
      By Mrs. CLINTON (for herself, Ms. Snowe, Ms. Mikulski, and Mr. 
        Breaux):
  S. 2489. A bill to amend the Public Health Service Act to establish a 
program to assist family caregivers in accessing affordable and high-
quality respite care, and for other purposes; to the Committee on 
Health, Education, Labor, and Pensions.
  Mrs. CLINTON. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2489

       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 ``Lifespan Respite Care Act of 
     2002''.

     SEC. 2. LIFESPAN RESPITE CARE.

       The Public Health Service Act (42 U.S.C. 201 et seq.) is 
     amended by adding at the end the following:

                 ``TITLE XXVIII--LIFESPAN RESPITE CARE

     ``SEC. 2801. FINDINGS AND PURPOSES.

       ``(a) Findings.--Congress finds that--
       ``(1) an estimated 26,000,000 individuals in the United 
     States care each year for 1 or more adult family members or 
     friends who are chronically ill, disabled, or terminally ill;
       ``(2) an estimated 18,000,000 children in the United States 
     have chronic physical, developmental, behavioral, or 
     emotional conditions that demand caregiver monitoring, 
     management, supervision, or treatment beyond that required of 
     children generally;
       ``(3) approximately 6,000,000 children in the United States 
     live with a grandparent or other relative because their 
     parents are unable or unwilling to care for them;
       ``(4) an estimated 165,000 children with disabilities in 
     the United States live with a foster care parent;
       ``(5) nearly 4,000,000 individuals in the United States of 
     all ages who have mental retardation or another developmental 
     disability live with their families;
       ``(6) almost 25 percent of the Nation's elders experience 
     multiple chronic disabling conditions that make it necessary 
     to rely on others for help in meeting their daily needs;
       ``(7) every year, approximately 600,000 Americans die at 
     home and many of these individuals rely on extensive family 
     caregiving before their death;
       ``(8) of all individuals in the United States needing 
     assistance in daily living, 42 percent are under age 65;
       ``(9) there are insufficient resources to replace family 
     caregivers with paid workers;
       ``(10) if services provided by family caregivers had to be 
     replaced with paid services, it would cost approximately 
     $200,000,000,000 annually;
       ``(11) the family caregiver role is personally rewarding 
     but can result in substantial emotional, physical, and 
     financial hardship;
       ``(12) approximately 75 percent of family caregivers are 
     women;
       ``(13) family caregivers often do not know where to find 
     information about available respite care or how to access it;
       ``(14) available respite care programs are insufficient to 
     meet the need and are directed at primarily lower income 
     populations and family caregivers of the elderly, leaving 
     large numbers of family caregivers without adequate support; 
     and
       ``(15) the limited number of available respite care 
     programs find it difficult to recruit appropriately trained 
     respite workers.
       ``(b) Purposes.--The purposes of this title are--
       ``(1) to encourage States to establish State and local 
     lifespan respite care programs;
       ``(2) to improve and coordinate the dissemination of 
     respite care information and resources to family caregivers;
       ``(3) to provide, supplement, or improve respite care 
     services to family caregivers;
       ``(4) to promote innovative, flexible, and comprehensive 
     approaches to--
       ``(A) the delivery of respite care;
       ``(B) respite care worker and volunteer recruitment and 
     training programs; and
       ``(C) training programs for family caregivers to assist 
     such family caregivers in making informed decisions about 
     respite care services;
       ``(5) to support evaluative research to identify effective 
     respite care services that alleviate, reduce, or minimize any 
     negative consequences of caregiving; and
       ``(6) to promote the dissemination of results, findings, 
     and information from programs and research projects relating 
     to respite care delivery, family caregiver strain, respite 
     care worker and volunteer recruitment and training, and 
     training programs for family caregivers that assist such 
     family caregivers in making informed decisions about respite 
     care services.

[[Page S4152]]

     ``SEC. 2802. DEFINITIONS.

       ``In this title:
       ``(1) Associate administrator.--The term `Associate 
     Administrator' means the Associate Administrator of the 
     Maternal and Child Health Bureau of the Health Resources and 
     Services Administration.
       ``(2) Condition.--The term `condition' includes--
       ``(A) Alzheimer's disease and related disorders;
       ``(B) developmental disabilities;
       ``(C) mental retardation;
       ``(D) physical disabilities;
       ``(E) chronic illness, including cancer;
       ``(F) behavioral, mental, and emotional conditions;
       ``(G) cognitive impairments;
       ``(H) situations in which there exists a high risk of abuse 
     or neglect or of being placed in the foster care system due 
     to abuse and neglect;
       ``(I) situations in which a child's parent is unavailable 
     due to the parent's death, incapacitation, or incarceration; 
     or
       ``(J) any other conditions as the Associate Administrator 
     may establish by regulation.
       ``(3) Eligible recipient.--The term `eligible recipient' 
     means--
       ``(A) a State agency;
       ``(B) any other public entity that is capable of operating 
     on a statewide basis;
       ``(C) a private, nonprofit organization that is capable of 
     operating on a statewide basis;
       ``(D) a political subdivision of a State that has a 
     population of not less than 3,000,000 individuals; or
       ``(E) any recognized State respite coordinating agency that 
     has--
       ``(i) a demonstrated ability to work with other State and 
     community-based agencies;
       ``(ii) an understanding of respite care and family 
     caregiver issues; and
       ``(iii) the capacity to ensure meaningful involvement of 
     family members, family caregivers, and care recipients.
       ``(4) Family caregiver.--The term `family caregiver' means 
     an unpaid family member, a foster parent, or another unpaid 
     adult, who provides in-home monitoring, management, 
     supervision, or treatment of a child or adult with a special 
     need.
       ``(5) Lifespan respite care.--The term `lifespan respite 
     care' means a coordinated system of accessible, community-
     based respite care services for family caregivers of 
     individuals regardless of the individual's age, race, 
     ethnicity, or special need.
       ``(6) Respite care.--The term `respite care' means planned 
     or emergency care provided to an individual with a special 
     need--
       ``(A) in order to provide temporary relief to the family 
     caregiver of that individual; or
       ``(B) when the family caregiver of that individual is 
     unable to provide care.
       ``(7) Special need.--The term `special need' means the 
     particular needs of an individual of any age who requires 
     care or supervision because of a condition in order to meet 
     the individual's basic needs or to prevent harm to the 
     individual.

     ``SEC. 2803. LIFESPAN RESPITE CARE GRANTS AND COOPERATIVE 
                   AGREEMENTS.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to expand and enhance respite care services to family 
     caregivers;
       ``(2) to improve the statewide dissemination and 
     coordination of respite care; and
       ``(3) to provide, supplement, or improve access and quality 
     of respite care services to family caregivers, thereby 
     reducing family caregiver strain.
       ``(b) Authorization.--Subject to subsection (f), the 
     Associate Administrator is authorized to award grants or 
     cooperative agreements to eligible recipients who submit an 
     application pursuant to subsection (d).
       ``(c) Federal Lifespan Approach.--In carrying out this 
     section, the Associate Administrator shall work in 
     cooperation with the National Family Caregiver Support 
     Program Officer of the Administration on Aging, and respite 
     care program officers in the Administration for Children and 
     Families, the Administration on Developmental Disabilities, 
     and the Substance Abuse and Mental Health Services 
     Administration, to ensure coordination of respite care 
     services for family caregivers of individuals of all ages 
     with special needs.
       ``(d) Application.--
       ``(1) Submission.--Each eligible recipient desiring to 
     receive a grant or cooperative agreement under this section 
     shall submit an application to the Associate Administrator at 
     such time, in such manner, and containing such information as 
     the Associate Administrator shall require.
       ``(2) Contents.--Each application submitted under this 
     section shall include--
       ``(A) a description of the applicant's--
       ``(i) understanding of respite care and family caregiver 
     issues;
       ``(ii) capacity to ensure meaningful involvement of family 
     members, family caregivers, and care recipients; and
       ``(iii) collaboration with other State and community-based 
     public, nonprofit, or private agencies;
       ``(B) with respect to the population of family caregivers 
     to whom respite care information or services will be provided 
     or for whom respite care workers and volunteers will be 
     recruited and trained, a description of--
       ``(i) the population;
       ``(ii) the extent and nature of the respite care needs of 
     the population;
       ``(iii) existing respite care services for the population, 
     including numbers of family caregivers being served and 
     extent of unmet need;
       ``(iv) existing methods or systems to coordinate respite 
     care information and services to the population at the State 
     and local level and extent of unmet need;
       ``(v) how respite care information dissemination and 
     coordination, respite care services, respite care worker and 
     volunteer recruitment and training programs, or training 
     programs for family caregivers that assist such family 
     caregivers in making informed decisions about respite care 
     services will be provided using grant or cooperative 
     agreement funds;
       ``(vi) a plan for collaboration and coordination of the 
     proposed respite care activities with other related services 
     or programs offered by public or private, nonprofit entities, 
     including area agencies on aging;
       ``(vii) how the population, including family caregivers, 
     care recipients, and relevant public or private agencies, 
     will participate in the planning and implementation of the 
     proposed respite care activities;
       ``(viii) how the proposed respite care activities will make 
     use, to the maximum extent feasible, of other Federal, State, 
     and local funds, programs, contributions, other forms of 
     reimbursements, personnel, and facilities;
       ``(ix) respite care services available to family caregivers 
     in the applicant's State or locality, including unmet needs 
     and how the applicant's plan for use of funds will improve 
     the coordination and distribution of respite care services 
     for family caregivers of individuals of all ages with special 
     needs;
       ``(x) the criteria used to identify family caregivers 
     eligible for respite care services;
       ``(xi) how the quality and safety of any respite care 
     services provided will be monitored, including methods to 
     ensure that respite care workers and volunteers are 
     appropriately screened and possess the necessary skills to 
     care for the needs of the care recipient in the absence of 
     the family caregiver; and
       ``(xii) the results expected from proposed respite care 
     activities and the procedures to be used for evaluating those 
     results; and
       ``(C) assurances that, where appropriate, the applicant 
     shall have a system for maintaining the confidentiality of 
     care recipient and family caregiver records.
       ``(e) Review of Applications.--
       ``(1) Establishment of review panel.--The Associate 
     Administrator shall establish a panel to review applications 
     submitted under this section.
       ``(2) Meetings.--The panel shall meet as often as may be 
     necessary to facilitate the expeditious review of 
     applications.
       ``(3) Function of panel.--The panel shall--
       ``(A) review and evaluate each application submitted under 
     this section; and
       ``(B) make recommendations to the Associate Administrator 
     concerning whether the application should be approved.
       ``(f) Awarding of Grants or Cooperative Agreements.--
       ``(1) In general.--The Associate Administrator shall award 
     grants or cooperative agreements from among the applications 
     approved by the panel under subsection (e)(3).
       ``(2) Priority.--When awarding grants or cooperative 
     agreements under this subsection, the Associate Administrator 
     shall give priority to applicants that show the greatest 
     likelihood of implementing or enhancing lifespan respite care 
     statewide.
       ``(g) Use of Grant or Cooperative Agreement Funds.--
       ``(1) In general.--
       ``(A) Mandatory uses of funds.--Each eligible recipient 
     that is awarded a grant or cooperative agreement under this 
     section shall use the funds for, unless such a program is in 
     existence--
       ``(i) the development of lifespan respite care at the State 
     and local levels; and
       ``(ii) an evaluation of the effectiveness of such care.
       ``(B) Discretionary uses of funds.--Each eligible recipient 
     that is awarded a grant or cooperative agreement under this 
     section may use the funds for--
       ``(i) respite care services;
       ``(ii) respite care worker and volunteer training programs; 
     or
       ``(iii) training programs for family caregivers to assist 
     such family caregivers in making informed decisions about 
     respite care services.
       ``(C) Evaluation.--If an eligible recipient uses funds 
     awarded under this section for an activity described in 
     subparagraph (B), the eligible recipient shall use funds for 
     an evaluation of the effectiveness of the activity.
       ``(2) Subcontracts.--Each eligible recipient that is 
     awarded a grant or cooperative agreement under this section 
     may use the funds to subcontract with a public or nonprofit 
     agency to carry out the activities described in paragraph 
     (1).
       ``(h) Term of Grants or Cooperative Agreements.--
       ``(1) In general.--The Associate Administrator shall award 
     grants or cooperative agreements under this section for terms 
     that do not exceed 5 years.
       ``(2) Renewal.--The Associate Administrator may renew a 
     grant or cooperative agreement under this section at the end 
     of the term of the grant or cooperative agreement determined 
     under paragraph (1).
       ``(i) Supplement, Not Supplant.--Funds made available under 
     this section shall be used to supplement and not supplant 
     other Federal, State, and local funds available for respite 
     care services.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section--

[[Page S4153]]

       ``(1) $90,500,000 for fiscal year 2003;
       ``(2) $118,000,000 for fiscal year 2004;
       ``(3) $145,500,000 for fiscal year 2005;
       ``(4) $173,000,000 for fiscal year 2006; and
       ``(5) $200,000,000 for fiscal year 2007.

     ``SEC. 2804. NATIONAL LIFESPAN RESPITE RESOURCE CENTER.

       ``(a) Establishment.--From funds appropriated under 
     subsection (c), the Associate Administrator shall award a 
     grant or cooperative agreement to a public or private 
     nonprofit entity to establish a National Resource Center on 
     Lifespan Respite Care (referred to in this section as the 
     `center').
       ``(b) Purposes of the Center.--The center shall--
       ``(1) maintain a national database on lifespan respite 
     care;
       ``(2) provide training and technical assistance to State, 
     community, and nonprofit respite care programs; and
       ``(3) provide information, referral, and educational 
     programs to the public on lifespan respite care.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $500,000 for each of fiscal years 2003 through 2007.''.
                                 ______
                                 
      By Mr. TORRICELLI (for himself and Mr. Smith of Oregon):
  S. 2490. A bill to amend title XVIII of the Social Security Act to 
ensure the quality of, and access to, skilled nursing facility services 
under the Medicare Program; to the Committee on Finance.
  Mr. SMITH of Oregon. Mr. President, I rise today to join my 
colleague, Senator Torricelli, in introducing the Medicare Skilled 
Nursing Beneficiary Protection Act of 2002, a bill that will bring 
better care to thousands of Oregon seniors.
  Nursing homes across America are in trouble, and it's not just Wall 
Street analysts who will tell you that. The people who rely on nursing 
home services the most can share with you their concerns about the 
future of skilled nursing care. Impending cuts to Medicare benefits for 
skilled nursing facilities will jeopardize the health and safety of 
some of our most vulnerable seniors and people with disabilities, and 
we cannot in good conscience allow these cuts to occur. The Medicare 
Skilled Nursing Beneficiary Protection Act of 2002 will prevent cuts to 
Medicare funding for nursing homes and will ensure that Medicare pays 
for the full cost of care rather than short-changing nursing 
facilities.
  This bill will be particularly important for Oregon. My State of 
Oregon is home to an ever growing population of senior citizens, and we 
are predicted to be the 4th oldest State in the union by the year 2020. 
As our citizens age, and I am among that aging group, it will be 
essential that we have the capacity to care for our most needy seniors. 
Unfortunately, instead of increasing capacity we are seeing skilled 
nursing facilities close all over the country. This could have 
disastrous consequences for an already over-taxed health care system.
  Without the Medicare Skilled Nursing Beneficiary Protection Act, 
Oregon's nursing homes will lose $37.58 per patient per day, and it is 
difficult to offer high quality services under those circumstances. We 
must work together to pass this important legislation to protect our 
seniors, and to ensure that skilled nursing facilities will still be 
there when the rest of us need them in only a few short years.
                                 ______
                                 
      By Mr. INHOFE:
  S. 2491. A bill to authorize the President to award a gold medal on 
behalf of Congress to the Choctaw and Comanche code talkers in 
recognition of the contributions provided by those individuals to the 
United States; to the Committee on Banking, Housing, and Urban Affairs.
  Mr. INHOFE. Mr. President, today I rise to introduce a bill to honor 
a group of men who bravely served this country. I am proud to recognize 
the Choctaw and Comanche Code Talkers who joined the United States 
Armed Forces on foreign soil in the fight for freedom in two world 
wars.
  During World War I, the Germans began tapping American lines, 
creating the need to provide secure communications. Despite the fact 
that American Indians were not citizens, 18 members of the Choctaw 
Nation enlisted to become the first American Indian soldiers to use 
their native language to transmit messages between the Allied forces.
  At least one Choctaw man was placed in each field company 
headquarters. He would translate radio messages into the Choctaw 
language and then write field orders to be carried by messengers 
between different companies on the battle line. Fortunately, because 
Choctaw was an unwritten language only understood by those who spoke 
it, the Germans were never able to break the code.
  The 18 Choctaw Code Talkers who served in the 142nd Infantry Company 
of the 36th Division were: Albert Billy, Victor Brown, Mitchell Bobb, 
Ben Carterby, George Davenport, Joe Davenport, James Edwards, Tobias 
Frazier, Ben Hampton, Noel Johnson, Otis Leader, Soloman Louis, Pete 
Maytubby, Jeff Nelson, Joseph Oklahombi, Robert Taylor, Walter Veach, 
and Calvin Wilson.
  Similarly, the Comanche Code Talkers played an important role during 
World War II. Once again, the enemy began tapping American lines. In 
order to establish the secure transmission of messages, the United 
States enlisted fourteen Comanche Code Talkers who served overseas in 
the 4th Signal Company of the 4th Infantry Division. They were: Charles 
Chibitty, Haddon Codynah, Robert Holder, Forrest Kassanavoid, 
Wellington Mihecoby, Albert Nahquaddy, Jr., Clifford Ototivo, Simmons 
Parker, Melvin Permansu, Elgin Red Elk, Roderick Red Elk, Larry 
Saupitty, Morris Tabbyetchy, and Willis Yackeshi.
  The Army chose the Comanches because their language was thought to be 
the least known to the Germans. Second Lieutenant Hugh Foster worked 
with them to develop their own unique code for military words. He gave 
the Indians a list of military words and then worked with them to 
develop a Comanche word or phrase for those words.
  On June 6, 1944, just after landing in Normandy, a Comanche trained 
by Lt. Foster and serving as a driver and radio operator under 
Brigadier General Theodore Roosevelt, Jr, sent one of the first 
messages from Utah Beach. These communications efforts, by the 
Comanches, helped the Allies win the war in Europe.
  It is time Congress officially recognizes these men. My bill directs 
the Secretary of the Treasury to award the Choctaw and Comanche Code 
Talkers a gold medal as a result of their great commitment and service 
on behalf of the United States during World Wars I and II. I welcome my 
colleagues to join me in saluting this group of heroes for contributing 
to the fight for freedom for our country and around the world.
                                 ______
                                 
      By Mr. CLELAND:
  S. 2492. A bill to amend title 5, United States Code, to require that 
agencies, in promulgating rules, take into consideration the impact of 
such rules on the privacy of individuals, and for other purposes; to 
the Committee on Governmental Affairs.
  Mr. CLELAND. Mr. President, I rise today to introduce legislation, 
the Federal Agency Protection of Privacy Act, that will require Federal 
agencies to carefully consider the impact of proposed regulations on 
individual privacy. In the aftermath of the terrorist attacks of 
September 11, we are being forced to fight a new kind of war; a war in 
which we have not only physical battlefields, but battlefields of 
principle.
  Not only must we have troops on the ground protecting our physical 
well-being, but we must also insure that we protect the American way of 
life. Ours is a country based on individual rights--rights to pursue 
life, liberty, and happiness, as Thomas Jefferson mentioned in the 
manner in which each of us sees fit.
  While we are obligated, as a Government, to protect the physical 
safety of the American people, we also are obligated to remember our 
history, our struggles, and the principles for which our great Nation 
stands. While we enhance and strengthen our investigatory tools and 
physical arsenal, we cannot allow the terrorists to prevail in 
undermining our civil liberties.

  Therefore, today, I am introducing the Federal Agency Protection of 
Privacy Act in the Senate as companion legislation to H.R. 4561, which 
was introduced by Representative Bob Barr, a long-time champion of 
civil liberties in the U.S. Congress. It will impose a mandate that 
when Federal agencies are required to publish a general notice of 
proposed rulemaking, they must publish an accompanying ``privacy impact 
statement.'' This initial privacy

[[Page S4154]]

impact statement, written in terms which all of us can understand, 
would be subject to public notice and comment. After receiving 
and evaluating any comments, the agency would then be required to 
include a final privacy impact statement with the regulation.

  These initial and final privacy impact statements would include: the 
type of information to be collected and how it would be used; 
mechanisms through which individuals could correct inaccuracies in the 
collected information; assurances that the information would not be 
used for a purpose other than initially specified; and a description of 
how the information will be secured by the agency. For example, the 
Financial Crime Enforcement Network of the Department of the Treasury 
has proposed a rule implementing provisions of the USA PATRIOT Act of 
2001 which would encourage financial institutions and Federal law 
enforcement agencies to share information in order to identify and 
deter money laundering and terrorist activity. While I fully support 
the Patriot Act and recognize the benefits of such a rule, the 
sensitivity of such information necessitates that we insure that the 
agency consider the ramifications of such an invasion on an 
individual's privacy. The American people must know specifically how 
this financial information would be used and how it would be protected. 
The purpose, importance, and timeliness of this legislation have 
brought together a wide variety of supporting organizations, ranging 
from the American Civil Liberties Union to the National Rifle 
Association to Public Citizen.

  While I have been and continue to be a strong supporter of the war on 
terrorism, I am also well aware that we face a multi-faceted enemy. My 
experience has taught me that diverse threats necessitate diverse 
responses. We have planned for our offensives on the ground and in the 
air, and we have begun to mount a stronger homeland defense. But our 
efforts will be incomplete and will indeed run the risk of undermining 
all else we may accomplish in the fight against terrorism if we neglect 
to mount a successful defense of the American way. I believe that this 
legislation is necessary to protect the American people from attacks 
seen and unseen, and I encourage other Senators to join me in 
protecting the liberties for which I know we all stand.

  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. 2492

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Federal Agency Protection of 
     Privacy Act''.

     SEC. 2. REQUIREMENT THAT AGENCY RULEMAKING TAKE INTO 
                   CONSIDERATION IMPACTS ON INDIVIDUAL PRIVACY.

       (a) In General.--Title 5, United States Code, is amended by 
     adding after section 553 the following:

     ``Sec. 553a. Privacy impact analysis in rulemaking

       ``(a) Initial Privacy Impact Analysis.--
       ``(1) In general.--Whenever an agency is required by 
     section 553 of this title, or any other law, to publish a 
     general notice of proposed rulemaking for any proposed rule, 
     or publishes a notice of proposed rulemaking for an 
     interpretative rule involving the internal revenue laws of 
     the United States, the agency shall prepare and make 
     available for public comment an initial privacy impact 
     analysis. Such analysis shall describe the impact of the 
     proposed rule on the privacy of individuals. The initial 
     privacy impact analysis or a summary shall be signed by the 
     senior agency official with primary responsibility for 
     privacy policy and be published in the Federal Register at 
     the time of the publication of a general notice of proposed 
     rulemaking for the rule.
       ``(2) Contents.--Each initial privacy impact analysis 
     required under this subsection shall contain the following:
       ``(A) A description and assessment of the extent to which 
     the proposed rule will impact the privacy interests of 
     individuals, including the extent to which the proposed 
     rule--
       ``(i) provides notice of the collection of personally 
     identifiable information, and specifies what personally 
     identifiable information is to be collected and how it is to 
     be collected, maintained, used, and disclosed;
       ``(ii) allows access to such information by the person to 
     whom the personally identifiable information pertains and 
     provides an opportunity to correct inaccuracies;
       ``(iii) prevents such information, which is collected for 
     one purpose, from being used for another purpose; and
       ``(iv) provides security for such information.
       ``(B) A description of any significant alternatives to the 
     proposed rule which accomplish the stated objectives of 
     applicable statutes and which minimize any significant 
     privacy impact of the proposed rule on individuals.
       ``(b) Final Privacy Impact Analysis.--
       ``(1) In general.--Whenever an agency promulgates a final 
     rule under section 553 of this title, after being required by 
     that section or any other law to publish a general notice of 
     proposed rulemaking, or promulgates a final interpretative 
     rule involving the internal revenue laws of the United 
     States, the agency shall prepare a final privacy impact 
     analysis, signed by the senior agency official with primary 
     responsibility for privacy policy.
       ``(2) Contents.--Each final privacy impact analysis 
     required under this subsection shall contain the following:
       ``(A) A description and assessment of the extent to which 
     the final rule will impact the privacy interests of 
     individuals, including the extent to which the proposed 
     rule--
       ``(i) provides notice of the collection of personally 
     identifiable information, and specifies what personally 
     identifiable information is to be collected and how it is to 
     be collected, maintained, used, and disclosed;
       ``(ii) allows access to such information by the person to 
     whom the personally identifiable information pertains and 
     provides an opportunity to correct inaccuracies;
       ``(iii) prevents such information, which is collected for 
     one purpose, from being used for another purpose; and
       ``(iv) provides security for such information.
       ``(B) A summary of the significant issues raised by the 
     public comments in response to the initial privacy impact 
     analysis, a summary of the assessment of the agency of such 
     issues, and a statement of any changes made in the proposed 
     rule as a result of such issues.
       ``(C) A description of the steps the agency has taken to 
     minimize the significant privacy impact on individuals 
     consistent with the stated objectives of applicable statutes, 
     including a statement of the factual, policy, and legal 
     reasons for selecting the alternative adopted in the final 
     rule and why each one of the other significant alternatives 
     to the rule considered by the agency which affect the privacy 
     interests of individuals was rejected.
       ``(3) Availability to public.--The agency shall make copies 
     of the final privacy impact analysis available to members of 
     the public and shall publish in the Federal Register such 
     analysis or a summary thereof.
       ``(c) Procedure for Waiver or Delay of Completion.--An 
     agency head may waive or delay the completion of some or all 
     of the requirements of subsections (a) and (b) to the same 
     extent as the agency head may, under section 608, waive or 
     delay the completion of some or all of the requirements of 
     sections 603 and 604, respectively.
       ``(d) Procedures for Gathering Comments.--When any rule is 
     promulgated which may have a significant privacy impact on 
     individuals, or a privacy impact on a substantial number of 
     individuals, the head of the agency promulgating the rule or 
     the official of the agency with statutory responsibility for 
     the promulgation of the rule shall assure that individuals 
     have been given an opportunity to participate in the 
     rulemaking for the rule through techniques such as--
       ``(1) the inclusion in an advance notice of proposed 
     rulemaking, if issued, of a statement that the proposed rule 
     may have a significant privacy impact on individuals, or a 
     privacy impact on a substantial number of individuals;
       ``(2) the publication of a general notice of proposed 
     rulemaking in publications of national circulation likely to 
     be obtained by individuals;
       ``(3) the direct notification of interested individuals;
       ``(4) the conduct of open conferences or public hearings 
     concerning the rule for individuals, including soliciting and 
     receiving comments over computer networks; and
       ``(5) the adoption or modification of agency procedural 
     rules to reduce the cost or complexity of participation in 
     the rulemaking by individuals.
       ``(e) Periodic Review of Rules.--
       ``(1) In general.--Each agency shall carry out a periodic 
     review of the rules promulgated by the agency that have a 
     significant privacy impact on individuals, or a privacy 
     impact on a substantial number of individuals. Under such 
     periodic review, the agency shall determine, for each such 
     rule, whether the rule can be amended or rescinded in a 
     manner that minimizes any such impact while remaining in 
     accordance with applicable statutes. For each such 
     determination, the agency shall consider the following 
     factors:
       ``(A) The continued need for the rule.
       ``(B) The nature of complaints or comments received from 
     the public concerning the rule.
       ``(C) The complexity of the rule.
       ``(D) The extent to which the rule overlaps, duplicates, or 
     conflicts with other Federal rules, and, to the extent 
     feasible, with State and local governmental rules.

[[Page S4155]]

       ``(E) The length of time since the rule was last reviewed 
     under this subsection.
       ``(F) The degree to which technology, economic conditions, 
     or other factors have changed in the area affected by the 
     rule since the rule was last reviewed under this subsection.
       ``(2) Plan required.--Each agency shall carry out the 
     periodic review required by paragraph (1) in accordance with 
     a plan published by such agency in the Federal Register. Each 
     such plan shall provide for the review under this subsection 
     of each rule promulgated by the agency not later than 10 
     years after the date on which such rule was published as the 
     final rule and, thereafter, not later than 10 years after the 
     date on which such rule was last reviewed under this 
     subsection. The agency may amend such plan at any time by 
     publishing the revision in the Federal Register.
       ``(3) Annual publication.--Each year, each agency shall 
     publish in the Federal Register a list of the rules to be 
     reviewed by such agency under this subsection during the 
     following year. The list shall include a brief description of 
     each such rule and the need for and legal basis of such rule 
     and shall invite public comment upon the determination to be 
     made under this subsection with respect to such rule.
       ``(f) Judicial Review.--
       ``(1) In general.--For any rule subject to this section, an 
     individual who is adversely affected or aggrieved by final 
     agency action is entitled to judicial review of agency 
     compliance with the requirements of subsections (b) and (c) 
     in accordance with chapter 7. Agency compliance with 
     subsection (d) shall be judicially reviewable in connection 
     with judicial review of subsection (b).
       ``(2) Jurisdiction.--Each court having jurisdiction to 
     review such rule for compliance with section 553, or under 
     any other provision of law, shall have jurisdiction to review 
     any claims of noncompliance with subsections (b) and (c) in 
     accordance with chapter 7. Agency compliance with subsection 
     (d) shall be judicially reviewable in connection with 
     judicial review of subsection (b).
       ``(3) Limitations.--
       ``(A) An individual may seek such review during the period 
     beginning on the date of final agency action and ending 1 
     year later, except that where a provision of law requires 
     that an action challenging a final agency action be commenced 
     before the expiration of 1 year, such lesser period shall 
     apply to an action for judicial review under this subsection.
       ``(B) In the case where an agency delays the issuance of a 
     final privacy impact analysis pursuant to subsection (c), an 
     action for judicial review under this section shall be filed 
     not later than--
       ``(i) 1 year after the date the analysis is made available 
     to the public; or
       ``(ii) where a provision of law requires that an action 
     challenging a final agency regulation be commenced before the 
     expiration of the 1-year period, the number of days specified 
     in such provision of law that is after the date the analysis 
     is made available to the public.
       ``(4) Relief.--In granting any relief in an action under 
     this subsection, the court shall order the agency to take 
     corrective action consistent with this section and chapter 7, 
     including, but not limited to--
       ``(A) remanding the rule to the agency; and
       ``(B) deferring the enforcement of the rule against 
     individuals, unless the court finds that continued 
     enforcement of the rule is in the public interest.
       ``(5) Rule of construction.--Nothing in this subsection 
     shall be construed to limit the authority of any court to 
     stay the effective date of any rule or provision thereof 
     under any other provision of law or to grant any other relief 
     in addition to the requirements of this subsection.
       ``(6) Record of agency action.--In an action for the 
     judicial review of a rule, the privacy impact analysis for 
     such rule, including an analysis prepared or corrected 
     pursuant to paragraph (4), shall constitute part of the 
     entire record of agency action in connection with such 
     review.
       ``(7) Exclusivity.--Compliance or noncompliance by an 
     agency with the provisions of this section shall be subject 
     to judicial review only in accordance with this subsection.
       ``(8) Savings clause.--Nothing in this subsection bars 
     judicial review of any other impact statement or similar 
     analysis required by any other law if judicial review of such 
     statement or analysis is otherwise permitted by law.
       ``(g) Definition.--In this section, the term `personally 
     identifiable information'--
       ``(1) means information that can be used to identify an 
     individual, including such individual's name, address, 
     telephone number, photograph, social security number or other 
     identifying information; and
       ``(2) includes information about such individual's medical 
     or financial condition.''.
       (b) Periodic Review Transition Provisions.--
       (1) Initial plan.--For each agency, the plan required by 
     subsection (e) of section 553a of title 5, United States Code 
     (as added by subsection (a)), shall be published not later 
     than 180 days after the date of enactment of this Act.
       (2) Prior rules.--In the case of a rule promulgated by an 
     agency before the date of the enactment of this Act, such 
     plan shall provide for the periodic review of such rule 
     before the expiration of the 10-year period beginning on the 
     date of the enactment of this Act. For any such rule, the 
     head of the agency may provide for a 1-year extension of such 
     period if the head of the agency, before the expiration of 
     the period, certifies in a statement published in the Federal 
     Register that reviewing such rule before the expiration of 
     the period is not feasible. The head of the agency may 
     provide for additional 1-year extensions of the period 
     pursuant to the preceding sentence, but in no event may the 
     period exceed 15 years.
       (c) Congressional Review.--Section 801(a)(1)(B) of title 5, 
     United States Code, is amended--
       (1) by redesignating clauses (iii) and (iv) as clauses (iv) 
     and (v), respectively; and
       (2) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the agency's actions relevant to section 553a;''.
       (d) Clerical Amendment.--The table of sections at the 
     beginning of chapter 5 of title 5, United States Code, is 
     amended by adding after the item relating to section 553 the 
     following:

``553a. Privacy impact analysis in rulemaking.''.
                                 ______
                                 
      By Mr. DASCHLE (for himself, Mr. Kennedy, and Mr. Dodd):
  S. 2493. A bill to amend the immigration and Nationality Act to 
provide a limited extension of the program under section 245(i) of that 
Act; to the Committee on the Judiciary.
  Mr. DASCHLE. Mr. President, yesterday, the House passed the border 
security legislation, and I expect it will become law very soon. 
Passage of the border security bill was an important first step in 
moving forward with comprehensive immigration reform, and it was one of 
the Democratic Principles that Representative Gephardt and I introduced 
last fall.
  Unfortunately, another important provision was not included in the 
border security legislation, the extension of section 245(i). It would 
allow families to stay together in this country while waiting to become 
permanent residents.
  As I have said on many occasions, I am strongly committed to a 
meaningful 245(i) extension. Regrettably, the House waited 6 months to 
act on 245(i) legislation that the Senate passed last September. This 
delay meant that key provisions in the bill became unworkable. The 
House-passed version contained hard deadlines that would have required 
applicants to have established familial or employment relationships 
before August 2001. These deadlines would have imposed impractical 
hurdles for immigrant families to overcome.
  Today, I am pleased to announce that I am introducing a new 245(i) 
extension bill that would remove these hard deadlines. My bill would 
move the application deadline to April 30, 2003, and maintain current 
prohibitions against fraudulent marriages and national security 
protections.
  This bill mirrors the version that was introduced by Senators Hagel 
and Kennedy last spring, and it should receive strong bipartisan 
support. I know both the President and Senator Lott have repeatedly 
expressed their desire to pass 245(i) legislation. It is my hope that 
they will work with me to help get it passed very soon.
  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. 2493

       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 ``Uniting Families Act of 
     2002''.

     SEC. 2. LIMITED EXTENSION OF SECTION 245(I) PROGRAM.

       (a) Extension of Filing Deadline.--Section 245(i)(1)(B)(i) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1255(i)(1)(B)(i)) is amended by striking ``on or before April 
     30, 2001'' and inserting ``on or before April 30, 2003''.
       (b) Exclusion of Certain Inadmissible and Deportable 
     Aliens.--The amendment made by subsection (a) shall not apply 
     to any alien who is--
       (1) inadmissible under section 212(a)(3), or deportable 
     under section 237(a)(4), of the Immigration and Nationality 
     Act (relating to security and related grounds); or
       (2) deportable under section 237(a)(1)(G) of such Act 
     (relating to marriage fraud).
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to applicants for adjustment of status who are 
     beneficaries of petitions for classification or applications 
     for labor certifications filed before, on, or after the date 
     of enactment of this Act.


[[Page S4156]]


  Mr. KENNEDY. Mr. President, since September 11, Congress has taken 
significant steps to strengthen the security of our borders and improve 
our immigration system. Last month, the Senate passed important 
legislation to strengthen border security, improve our ability to 
screen foreign nationals, and enhance our ability to deter potential 
terrorists. In addition, Senator Brownback and I recently introduced 
legislation to restructure the Immigration and Naturalization Service 
so that the agency is better prepared to address security concerns.
  As we work to respond to the security issues before us, we can't lose 
sight of the other immigration issues that are still a priority. I'm 
pleased to join Senator Daschle in moving forward with one of those 
issues today by introducing the Uniting Families Act of 2002. This 
legislation extends section 245(i), a vital provision of U.S. 
immigration law which allows individuals who already legally qualify 
for permanent residency to process their applications in the United 
States, without returning to their homes countries.
  Without 245(i), immigrants are forced to leave their families here in 
the U.S. and risk separation from them for up to 10 years. Seventy-five 
percent of the people who have used 245(i) are the spouses and children 
of U.S. citizens and permanent residents. Extending this critical 
provision will help keep families together and help businesses retain 
critical workers. In addition, the INS will receive millions of dollars 
in additional revenues, at no cost to taxpayers.
  Extending 245(i) does not provide any loopholes for potential 
terrorists. Instead, it will improve the monitoring of immigrants 
already residing in this country. Individuals who qualify for permanent 
residency and process their applications in the U.S. are subject to 
rigorous background checks and interviews. This process provides the 
government a good opportunity to investigate individuals who are in 
this country and determine whether they should be allowed to remain 
here.
  Section 245(i) does not provide amnesty to immigrants or any benefits 
to anyone suspected of marriage fraud. The provision provides no 
protection from deportation if someone is here illegally and no right 
to surpass other immigrants waiting for visas.
  The House passed legislation recently to extend section 245(i), but 
it was too restrictive to provide any meaningful assistance. The 
Uniting Families Act will extend the filing deadline to April 30, 2003, 
and provide needed and well-deserved relief to members of our immigrant 
communities.
  I urge my colleagues to join us in supporting this needed extension.
                                 ______
                                 
      By Mr. McCAIN:
  S. 2494. A bill to revise the boundary of the Petrified Forest 
National Park in the State of Arizona and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mr. McCAIN. Mr. President, I rise to introduce legislation to 
authorize expansion of the Petrified Forest National Park in Arizona.
  The Petrified Forest National Park is a national treasure among the 
Nation's parks, renowned for its large concentration of highly colored 
petrified wood, fossilized remains, and spectacular landscapes. 
However, it is much more than a colorful, scenic vista, for the 
Petrified Forest has been referred to as ``one of the world's greatest 
storehouses of knowledge about life on earth when the Age of the 
Dinosaurs was just beginning.''
  For anyone who has ever visited this Park, one is quick to recognize 
the wealth of scenic, scientific, and historical values of this Park. 
Preserved deposits of petrified wood and related fossils are among the 
most valuable representations of Triassic-period terrestrial ecosystems 
in the world. These natural formations were deposited more than 220 
million years ago. Scenic vistas, designated wilderness areas, and 
other historically significant sites of pictographs and Native American 
ruins are added dimensions to the Park.
  The Petrified Forest was originally designated as a National Monument 
by former President Theodore Roosevelt in 1906 to protect the important 
natural and cultural resources of the Park, and later re-designated as 
a National Park in 1962. While several boundary adjustments were made 
to the Park, a significant portion of unprotected resources remain in 
outlying areas adjacent to the Park.
  A proposal to expand the Park's boundaries was recommended in the 
Park's General Management Plan in 1992, in response to concerns about 
the long-term protection needs of globally significant resources and 
the Park's viewshed in nearby areas. For example, one of the most 
concentrated deposits of petrified wood is found within the Chinle 
encarpment, of which only thirty percent is included within the current 
Park boundaries.
  Increasing reports of theft and vandalism around the Park have 
activated the Park, local communities, and other interested entities to 
seek additional protections through a proposed boundary expansion. It 
has been estimated that visitors to the Park steal about 12 tons of 
petrified wood every year. Other reports of destruction to 
archaeological sites and gravesites have also been documented. Based on 
these continuing threats to resources intrinsic to the Park, the 
National Parks Conservation Association listed the Petrified Forest 
National Park on its list of Top Ten Most Endangered Parks in 2000.
  Support for this proposed boundary expansion is extraordinary, from 
the local community of Holbrook, scientific and research institutions, 
state tourism agencies, and environmental groups, such as the National 
Park Conservation Association, NPCA. I ask unanimous consent that a 
resolution from the City of Holbrook and a letter of support from NPCA 
be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                          Resolution No. 00-15


 a resolution of the city of holbrook, arizona endorsing the expansion 
                   of petrified forest national park

       Whereas, Petrified Forest National Park, first established 
     in 1906, is a priceless and irreplaceable part of America's 
     heritage; and
       Whereas, Petrified Forest National Park contains a variety 
     of significant natural and cultural resources, including 
     portions of the Painted Desert and some of the most valuable 
     paleontological resources in the world; and
       Whereas, Petrified Forest National Park has inspired and 
     educated millions of visitors from all over the world, and is 
     cherished as a national treasure to be protected for the 
     benefit and enjoyment of present and future generations; and
       Whereas, the Chinle Formation which creates the 
     spectacularly beautiful landscapes of the Painted Desert, 
     Blue Mesas, and other park features, is probably the best 
     place in the world for studying the Triassic period of the 
     earth's history; and
       Whereas, globally and nationally significant 
     paleontological, archaeological, and scenic resources 
     directly related to the resource values of Petrified Forest 
     National Park, including approximately 70 percent of the 
     Chinle Formation, are not included within the current 
     boundary; and
       Whereas, the newly approved General Management Plan for the 
     park, prepared by the National Park Service with broad public 
     input, has identified about 97,000 acres of land that, if 
     included as part of the park, would lead to protection of the 
     remainder of this globally significant Chinle Formation, 
     along with highly significant archaeological resources, and 
     would protect the beautiful, expansive vistas seen from the 
     park; and
       Whereas, land use patterns in the area of the park are 
     beginning to change, potentially threatening the protection 
     of the park and the broader setting in which it is placed; 
     and
       Whereas, implementing the General Management Plan is 
     essential to carry out a vision for Petrified Forest National 
     Park that will better protect park resources, enhance 
     research opportunities, broaden and diversify visitor 
     experiences, improve visitor service, and help contribute to 
     the sustainability of the regional economy into the 21st 
     century; and
       Whereas, an excellent opportunity now exists to include 
     adjacent areas of significant resources inside the park 
     boundary because other landowners in the region, including 
     the State of Arizona, and the Bureau of Land Management, and 
     other private landowners recognize the significance of the 
     resources on their lands and have expressed interest in 
     seeing them preserved in perpetuity for the benefit and 
     inspiration of this and future generations: Now, therefore, 
     be it
       Resolved, That the City of Holbrook, Arizona, hereby 
     recommends and supports the inclusion within Petrified Forest 
     National Park of all lands identified in the park's General 
     Management Plan as desirable boundary additions, and supports 
     all continuing efforts to enact legislation to accomplish 
     this task and to complete the federal acquisition of this 
     land. Be it further
       Resolved, That the Clerk of the City of Holbrook is 
     directed to immediately transmit this Resolution to the 
     Governor of the State of Arizona, Arizona's Congressional 
     delegation, and the Director of the National Park

[[Page S4157]]

     Service, together with a letter requesting prompt and ongoing 
     support for completing the park expansion.
                                  ____

                                                    National Parks


                                     Conservation Association,

                                      Washington, DC, May 9, 2002.
     Hon. John McCain,
     U.S. Senate, Russell Senate Office Bldg., Washington, DC.
       Dear Senator McCain: The National Parks Conservation 
     Association (NPCA) commends you for your leadership and 
     vision in introducing the Petrified Forest National Park 
     Expansion Act of 2002. Ever since NPCA published a Park 
     Boundary Study for various national parks in 1988, we have 
     been advocating the need for this expansion. With private 
     landowners anxious to sell their land, we believe the time is 
     ripe for this expansion.
       It is hard to imagine a better example of an outdoor 
     classroom than Petrified Forest National Park. This boundary 
     expansion will ensure long-term protection of globally 
     significant paleontological resources, potentially nationally 
     significant archaeological resources where there is 
     substantial evidence of early habitation, and the park's 
     viewshed. It will also alleviate the threat of encroaching 
     incompatible development and will greatly enhance the 
     National Park Service's capability to protect the resources 
     from vandalism and illegal pothunting.
       Just as Theodore Roosevelt recognized the importance of 
     preserving this land when he proclaimed Petrified Forest a 
     national monument in 1906, your legislation would ensure that 
     future generations can learn even more from this amazing 
     landscape that capture's the world's best record of Triassic-
     period terrestrial ecosystems and prehistoric human 
     occupation through an array of artifacts and ``trees turned 
     to stone.''
       NPCA looks forward to working with you and your staff to 
     advance this legislation.
           Sincerely,
                                                Thomas C. Kiernan.

  Mr. McCAIN. Mr. President, editorials from Arizona State newspapers 
also encourage a boundary expansion for the Park. I ask unanimous 
consent that articles from the Arizona Republic and the Holbrook 
Tribune News regarding the park expansion proposal be printed in the 
Record.
  There being no objection, the editorials were ordered to be printed 
in the Record, as follows:

                [From the Arizona Republic, May 3, 2002]

  Expanding Petrified Forest Can Save Treasures--Pothunters, Looters 
                           Ravaging Park Area

       Looters and pothunters are ravaging the land around 
     Petrified Forest National Park.
       The property should be inside the park. A decade ago, the 
     Park Service decided Petrified Forest's boundaries should be 
     expanded to include the priceless paleontology, archaeology 
     and other resources in adjoining areas.
       But the proposal has rarely gotten off the congressional 
     back burner.
       Until now.
       Arizona Republicans Rep. J.D. Hayworth and Sen. John McCain 
     are preparing bills to expand Petrified Forest. The plan is 
     to add 140,000 acres, more than doubling the 93,500-acre 
     park.
       They can't move too fast.
       The assets they're trying to protect are under heavy 
     assault.
       A pothunter recently smashed through an 800-year-old 
     prehistoric Indian site while searching for booty. Someone 
     else unearthed a massive petrified tree, nearly 5 feet in 
     diameter, and prepared to hack it into marketable chunks.
       Last year, we urged Congress to approve the park expansion. 
     Since then, looters have wrecked about 400 gravesites near 
     the park's eastern boundary.
       Congress has been understandably preoccupied with other 
     issues. But a critical window of opportunity is about to 
     close.
       Elections are coming up, and Arizona's new, larger 
     delegation could take time to come together on this issue. 
     Landowners around Petrified Forest are tired of waiting to 
     sell to the government and are beginning to subdivide their 
     land. The National Parks Conservation Association, and 
     Albuquerque-based non-profit group, is running out of 
     resources to push for the expansion.
       And the destruction, of course, continues unabated.


                          boundaries misjudged

       When Petrified Forest was protected almost a century ago, 
     originally as a national monument, the goal was simple: Save 
     some pretty fossilized wood. And that's how the boundaries 
     were picked.
       Now we realize that area in northeastern Arizona is a 
     treasure chest, with world-class paleontology, pueblo ruins, 
     striking petroglyphs and, of course, the marvelous trees that 
     turned to stone millions of years ago.
       But without a park expansion, many of these treasures will 
     remain outside the protection of federal law. Among them:
       The Chinle Escarpment, now only partially within the park, 
     has the world's best terrestrial fossils of plants and 
     animals from the late Triassic period, including early di- 
     nosaurs. The escarpment has yielded the earliest known 
     sample of amber.
       Rainbow Forest Badlands are rich in fossils and include 
     grazing land for the national park's herd of pronghorn 
     antelope
       Dead Wash Petroglyphs has panels of rock art and pueblo 
     sites of prehistoric people.
       Canyon Butte, a dramatic landmark, includes pueblo ruins 
     with signs of warfare.
       Expanding the park's boundaries appears unlikely to stir 
     controversy in Congress. Sen. Jon Kyl, R-Ariz., previously 
     landed $2 million in federal funding for land purchases.
       But we all know that the best ideas can get lost in the 
     blizzard of bills in Congress.
       We applaud Hayworth and McCain for pressing forward with 
     the park expansion. While there's still something left to 
     save.
                                  ____


          [From the Holbrook (AZ) Tribune-News, Oct. 27, 2000]

                       Park's Proposed Expansion

       Now under study is a plan to expand the Petrified Forest 
     National Park's boundaries by about 97,000 acres to afford 
     protection to this priceless natural treasure. It deserves 
     our interest and support.
       Thanks to the efforts of President Theodore Roosevelt and 
     others back in 1906, the park has been preserved for us to 
     enjoy nearly a century later. Now it is time to take the 
     necessary steps to protect the park for our posterity.
       The land involved surrounds the existing park. Some of it 
     is publicly owned, and some is privately owned.
       Presumably the public agencies owning property adjacent to 
     the park understand how important it is to enlarge the park 
     and offer protection to its resources. It is my understanding 
     that most, if not all, of the major private property owners 
     also support this expansion plan.
       The problem is that as these privately owned parcels are 
     subdivided, it makes it more and more difficult to acquire 
     the property for the expansion. And each year, the issue will 
     become more difficult, with more owners to deal with.
       The addition of this acreage to the Petrified Forest 
     National Park will help preserve these natural and cultural 
     heritage areas, and it is my hope that necessary steps will 
     be taken to accomplish this program.
       We have been fortunate to have foresighted people in the 
     past who have maintained this wonderful place for us, and we 
     must be equally diligent now to see that our children and 
     grandchildren will have it to enjoy for years in the future.

  Mr. McCAIN. The legislation I am introducing today is intended to 
serve as a placeholder bill for further development of a boundary 
expansion proposal. Several key issues remain that require resolution, 
including the exact definition of the expanded boundary acreage, and 
the disposition, and possible acquisition, of private, Federal, and 
State lands within the proposed expansion area.
  It's encouraging to note that the four major landowners within the 
proposed boundary expansion area have expressed interest in the Park 
expansion. Other public landowners, primarily the State of Arizona and 
the Bureau of Land Management, have recognized the significance of the 
paleontological resources on its lands adjacent to the Park. The 
Arizona State Trust Land Department closed nearby State trust lands to 
both surface and subsurface applications. Additionally, the Bureau of 
Land Management has identified its land-holdings within the proposed 
expansion area for disposal and possible transfer to the Park.
  Other issues involving additional private landholders and State trust 
lands must still be resolved. In particular, the State of Arizona has 
specific concerns which must be addressed as the legislation moves 
through the process, particularly with regard to compensation to the 
State for any acquisitions of State trust lands by the Secretary of 
Interior, in keeping with the requirements of State law.
  I fully intend to address these issues in consultation with affected 
entities and resolve any additional questions within a reasonable time-
frame. A historic opportunity exists to alleviate major threats to 
these nationally significant resources and preserve them for our 
posterity.
  I look forward to working with my colleagues on both sides of the 
aisle to ensure swift consideration and enactment of this proposal. 
Time is of the essence to ensure the long-term protection of these rare 
and important resources for the enjoyment and educational value for 
future generations.
  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. 2494

       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 ``Petrified Forest National 
     Park Expansion Act of 2002''.

[[Page S4158]]

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) the Petrified Forest National Park was established--
       (A) to preserve and interpret the globally significant 
     paleontological resources of the Park that are generally 
     regarded as the most important record of the Triassic period 
     in natural history; and
       (B) to manage those resources to retain significant 
     cultural, natural, and scenic values;
       (2) significant paleontological, archaeological, and scenic 
     resources directly related to the resource values of the Park 
     are located in land areas adjacent to the boundaries of the 
     Park;
       (3) those resources not included within the boundaries of 
     the Park--
       (A) are vulnerable to theft and desecration; and
       (B) are disappearing at an alarming rate;
       (4) the general management plan for the Park includes a 
     recommendation to expand the boundaries of the Park and 
     incorporate additional globally significant paleontological 
     deposits in areas adjacent to the Park--
       (A) to further protect nationally significant 
     archaeological sites; and
       (B) to protect the scenic integrity of the landscape and 
     viewshed of the Park; and
       (5) a boundary adjustment at the Park will alleviate major 
     threats to those nationally significant resources.
       (b) Purpose.--The purpose of this Act is to authorize the 
     Secretary of the Interior to acquire 1 or more parcels of 
     land--
       (1) to expand the boundaries of the Park; and
       (2) to protect the rare paleontological and archaeological 
     resources of the Park.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Map.--The term ``map'' means the map entitled 
     ``Proposed Boundary Adjustments, Petrified Forest National 
     Park'', numbered ____, and dated ________.
       (2) Park.--The term ``Park'' means the Petrified Forest 
     National Park in the State.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) State.--The term ``State'' means the State of Arizona.

     SEC. 4. BOUNDARY REVISION.

       (a) In General.--The boundary of the Park is revised to 
     include approximately ______ acres, as generally depicted on 
     the map.
       (b) Availability of Map.--The map shall be on file and 
     available for public inspection in the appropriate offices of 
     the National Park Service.

     SEC. 5. ACQUISITION OF ADDITIONAL LAND.

       (a) Private Land.--The Secretary may acquire from a willing 
     seller, by purchase, exchange, or by donation, any private 
     land or interests in private land within the revised boundary 
     of the Park.
       (b) State Land.--
       (1) In general.--The Secretary may, with the consent of the 
     State and in accordance with State law, acquire from the 
     State any State land or interests in State land within the 
     revised boundary of the Park by purchase or exchange.
       (2) Plan.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall, in coordination 
     with the State, develop a plan for acquisition of State land 
     or interests in State land identified for inclusion within 
     the revised boundary of the Park.

     SEC. 6. ADMINISTRATION.

       (a) In General.--Subject to applicable laws, all land and 
     interests in land acquired under this Act shall be 
     administered by the Secretary as part of the Park.
       (b) Transfer of Jurisdiction.--The Secretary shall transfer 
     to the National Park Service administrative jurisdiction over 
     any land under the jurisdiction of the Secretary that--
       (1) is depicted on the map as being within the boundaries 
     of the Park; and
       (2) is not under the administrative jurisdiction of the 
     National Park Service on the date of enactment of this Act.
       (c) Grazing.--
       (1) In general.--The Secretary shall permit the 
     continuation of grazing on land transferred to the Secretary 
     under this Act, subject to applicable laws (including 
     regulations) and Executive orders.
       (2) Termination of leases or permits.--Nothing in this 
     subsection prohibits the Secretary from accepting the 
     voluntary termination of a grazing permit or grazing lease 
     within the Park.
       (d) Amendment to General Management Plan.--Not later than 1 
     year after the date of enactment of this Act, the Secretary 
     shall amend the general management plan for the Park to 
     address the use and management of any additional land 
     acquired under this Act.

     SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
                                 ______
                                 
      By Mr. DOMENICI (for himself, Mr. Biden, Mr. Lott, Mr. Daschle, 
        Mr. Shelby, Mr. Reid, Mr. Nickles, Mr. Torricelli, Mr. Burns, 
        Mr. Schumer, Mr. Gregg, Mrs. Clinton, Mr. DeWine, Mr. McCain, 
        Mr. McConnell, Mr. Chafee, Mr. Allard, Mr. Brownback, Mr. 
        Crapo, Mr. Santorum, Mr. Cochran, Mr. Bond, Mrs. Hutchison, Mr. 
        Thompson, Ms. Collins, Mr. Craig, Mr. Kyl, Mr. Ensign, Mr. 
        Inhofe, Mr. Allen, Mr. Hagel, Mr. Voinovich, Mr. Stevens, Mr. 
        Warner, Mr. Specter, Mr. Smith of Oregon, Mr. Bunning, Mr. 
        Smith of New Hampshire, and Mr. Inouye):
  S. 2495. A bill to designate the United States courthouse located at 
100 Federal Plaza in Central Islip, New York, as the ``Alfonse M. 
D'Amato United States Courthouse''; to the Committee on Environment and 
Public Works.
  Mr. DOMENICI. Mr. President, I rise today to introduce a bill in 
honor of former Senator Alfonse M. D'Amato on behalf of myself and 40 
of my colleagues thus far. I am sure there will be more.
  It recently came to my attention that the Federal courthouse in 
Central Islip, Long Island, did not have a name so I thought to myself: 
What a shame. This beautiful new courthouse does not even have a name, 
and I concluded that it was time to rectify the oversight. Who better 
than Alfonse D'Amato, a great Senator from New York, who had more than 
a little bit to do with providing the people of the Empire State with 
public buildings to conduct the business of government and justice. 
Forty of my colleagues concur that we ought to name this U.S. 
courthouse the ``Alfonse M. D'Amato United States Courthouse.'' I 
believe that is the right thing to do. I understand the U.S. 
Representatives from New York are moving similar legislation through 
their body.
  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. 2495

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

     SECTION 1. DESIGNATION.

       The United States courthouse located at 100 Federal Plaza 
     in Central Islip, New York, shall be known and designated as 
     the ``Alfonse M. D'Amato United States Courthouse''.

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the United States 
     courthouse referred to in section 1 shall be deemed to be a 
     reference to the ``Alfonse M. D'Amato United States 
     Courthouse''.
                                 ______
                                 
      By Mr. BAUCUS (for himself and Mr. Grassley):
  S. 2498. A bill to amend the Internal Revenue Code of 1986 to require 
adequate disclosure of transactions which have a potential for tax 
avoidance or evasion, and for other purposes; to the Committee on 
Finance.
  Mr. BAUCUS. Mr. President, Garrison Keillor is quoted as saying, ``I 
believe in looking reality straight in the eye and denying it.'' That 
approach is perhaps what some would like us to do with respect to the 
increasing problem of the use of abusive tax shelters to avoid or evade 
taxes. But I do not agree.
  The Tax Shelter Transparency Act that I introduce today doesn't deny 
reality, rather, it shines some transparency on reality so that we have 
a better understanding of what is going on out there. Following Enron's 
bankruptcy, I think that all Americans have a greater appreciation for 
the need for greater transparency in complex tax transactions.
  The legislation is the product of over 2 years of review and public 
comment. The Tax Shelter Transparency Act also incorporates tax shelter 
proposals released by the Department of the Treasury the day before the 
Senate Finance Committee's March 21, 2002 hearing on the subject.
  As I stated at the hearing, ``the Finance Committee is committed to 
helping combat these carefully engineered transactions. These 
transactions have little or no economic substance, are designed to 
achieve unwarranted tax benefits rather than business profit, and place 
honest corporate competitors at a disadvantage.''
  The proliferation of tax shelters has been called ``the most 
significant compliance problem currently confronting our system of 
self-assessment.'' Less than 2 years ago, there was a more positive 
outlook regarding the Government's ability to curb the promotion and 
use of abusive tax shelters. The Department of the Treasury and the IRS

[[Page S4159]]

issued regulations requiring disclosure of certain transactions and 
requiring developers and promoters of tax-engineered transactions to 
maintain customer lists. Also, the IRS had prevailed in several court 
cases against the use of transactions lacking in economic substance.
  Unfortunately, the honesty and integrity of our tax system has 
suffered significant blows over the past 2 years. Court decisions have 
shifted from decisions tough on tax avoidance and evasion to court 
defeats for the IRS. Also, there appears to be a lack of compliance 
with the disclosure legislation passed in 1997 and the subsequent 
regulations.
  The corporate tax returns filed in 2001 are the first returns filed 
under the new tax shelter disclosure requirements. The administration 
provided the Finance Committee with the results of their analysis of 
the disclosure data, including their analysis of what was not 
disclosed.
  Only 272 transactions were disclosed by 99 corporate taxpayers. There 
are approximately 100,000 corporate taxpayers under the Large and 
Midsize Business Division at the IRS yet only 99 of them made a 
disclosure under the current regime. Based on the Finance Committee 
hearing, it is safe to say that the administration, as did Congress, 
thought the number of disclosures would be much greater.
  Clearly, the past method of reactive, ad-hoc closing down of abusive 
transactions does little to discourage the creation and exploitation of 
many shelters.
  These transactions may be good for a corporation's bottom line, but 
they are bad for the economy. Here's why: abusive corporate tax 
shelters create a tax benefit without any corresponding economic 
benefit. There's no new product. No technological innovation. Just a 
tax break.
  As with the Senate Finance Committee draft legislation released last 
August, the Tax Shelter Transparency Act emphasizes disclosure. 
Disclosure is critical to the Government's ability to identify and 
address abusive tax avoidance and evasion arrangements. Under the bill, 
if the taxpayer has entered into a questionable transaction and fails 
to disclose the transaction, then the taxpayer is subject to tough 
penalties for not disclosing and higher penalties if an understatement 
results.
  The legislation separates transactions into one of three types of 
transactions for purposes of disclosure and penalties: Reportable 
Listed Transactions, Reportable Avoidance Transactions, and a catch-all 
category for Other Transactions. The legislation also addresses the 
role of each of the players involved in abusive tax shelters: including 
the taxpayer who buys, the promoter who markets, and the tax advisor 
who provides an opinion ``endorsing'' the tax-engineered arrangement. 
The legislation focuses on each of these participants and contains 
proposals to discourage their participation in abusive tax 
transactions.
  Reportable Listed Transactions are transactions specifically 
identified by the Department of the Treasury as ``tax avoidance 
transactions.'' These are transactions specifically classified by 
Treasury as bad transactions, essentially the worst of the worst. 
Failure by the taxpayer to disclose the transaction results in a 
separate strict liability, nonwaivable flat dollar penalty of $200,000 
for large taxpayers and $100,000 for small taxpayers.
  Additionally, if the taxpayer is required to file with the Securities 
and Exchange Commission, the penalty must be reported to the SEC. If 
the taxpayer discloses the questionable transaction, they are not 
subject to the flat dollar penalty or the SEC reporting. The SEC 
reporting requirement is a critical element to improving the disclosure 
of transactions. The amount of tax penalty is relatively insignificant 
to the tax benefits generated by abusive tax shelter transactions. 
Corporations, however, have a strong incentive not to trigger a penalty 
that must be reported to the SEC.
  Failure to disclose a reportable listed transaction that results in a 
tax understatement will be subject to a higher, 30 percent, strict 
liability, nonwaivable accuracy-related penalty which must be reported 
to the SEC.
  Reportable Avoidance Transactions are transactions that fall into one 
of the several objective criteria established by the Department of the 
Treasury which have a potential for tax avoidance or evasion. Based on 
current regulations and the proposals put forward by the 
administration, we anticipate these transactions would include but 
would not be limited to: significant loss transactions; transactions 
with brief asset holding periods; transactions marketed under 
conditions of confidentiality; transactions subject to indemnification 
agreements; and transactions with a certain amount of book-tax 
difference.
  Failure by the taxpayer to disclose the questionable reportable 
avoidance transaction results in a separate strict liability, 
nonwaivable flat dollar penalty of $100,000 for large taxpayers and 
$50,000 for small taxpayers.
  Reportable Avoidance Transactions are then subject to a filter to 
determine whether there is a significant purpose of tax avoidance. 
Transactions entered into with a significant purpose of tax avoidance 
are subject to harsher treatment in the form of higher penalties.
  The legislation enhances the Government's ability to enjoin 
promoters. Most significantly, the legislation increases the penalty 
imposed on tax shelter promoters who refuse to maintain lists of their 
tax shelter investors. If a promoter fails to provide the IRS with a 
list of investors in a reportable transaction within 20 days after 
receipt of a written request by the IRS to provide such a list, the 
promoter would be subject to a penalty of $10,000 for each additional 
business day that the requested information is not provided.
  The legislation adds a provision authorizing the Treasury Department 
to censure tax advisors or impose monetary sanctions against tax 
advisors and firms that participate in tax shelter activities and 
practice before the IRS.
  I am pleased that this legislation is the product of working closely 
with my good friend, and the ranking member of the Finance Committee, 
Senator Grassley. I appreciate Senator Grassley's cosponsorship of the 
Tax Shelter Transparency Act and his commitment to work as a bipartisan 
front to shine some light on these abusive tax shelter transactions.
  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. 2498

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Tax 
     Shelter Transparency Act''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--

Sec. 1. Short title; amendment of 1986 code; table of contents.

                  TITLE I--TAXPAYER-RELATED PROVISIONS

Sec. 101. Penalty for failing to disclose reportable transaction.
Sec. 102. Increase in accuracy-related penalties for listed 
              transactions and other reportable transactions having a 
              tax avoidance purpose.
Sec. 103. Modifications of substantial understatement penalty for 
              nonreportable transactions.
Sec. 104. Tax shelter exception to confidentiality privileges relating 
              to taxpayer communications.

           TITLE II--PROMOTER AND PREPARER RELATED PROVISIONS

       Subtitle A--Provisions Relating To Reportable Transactions

Sec. 201. Disclosure of reportable transactions.
Sec. 202. Modifications to penalty for failure to register tax 
              shelters.
Sec. 203. Modification of penalty for failure to maintain lists of 
              investors.
Sec. 204. Modification of actions to enjoin specified conduct related 
              to tax shelters and reportable transactions.

                      Subtitle B--Other Provisions

Sec. 211. Understatement of taxpayer's liability by income tax return 
              preparer.
Sec. 212. Report on effectiveness of penalty on failure to report 
              interests in foreign financial accounts.
Sec. 213. Frivolous tax submissions.
Sec. 214. Regulation of individuals practicing before the Department of 
              Treasury.

[[Page S4160]]

Sec. 215. Penalty on promoters of tax shelters.

                  TITLE I--TAXPAYER-RELATED PROVISIONS

     SEC. 101. PENALTY FOR FAILING TO DISCLOSE REPORTABLE 
                   TRANSACTION.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by inserting 
     after section 6707 the following new section:

     ``SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE REPORTABLE 
                   TRANSACTION INFORMATION WITH RETURN OR 
                   STATEMENT.

       ``(a) Imposition of Penalty.--Any person who fails to 
     include with any return or statement any information required 
     to be included under subchapter A of chapter 61 with respect 
     to a reportable transaction shall pay a penalty in the amount 
     determined under subsection (b).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the amount of the penalty under subsection (a) shall be 
     $50,000.
       ``(2) Listed transaction.--The amount of the penalty under 
     subsection (a) with respect to a listed transaction shall be 
     $100,000.
       ``(3) Increase in penalty for large entities and high net 
     worth individuals.--
       ``(A) In general.--In the case of a failure under 
     subsection (a) by--
       ``(i) a large entity, or
       ``(ii) a high net worth individual,

     the penalty under paragraph (1) or (2) shall be twice the 
     amount determined without regard to this paragraph.
       ``(B) Large entity.--For purposes of subparagraph (A), the 
     term `large entity' means, with respect to any taxable year, 
     a person (other than a natural person) with gross receipts 
     for the taxable year or the preceding taxable year in excess 
     of $10,000,000. Rules similar to the rules of paragraph (2) 
     and subparagraphs (B), (C), and (D) of paragraph (3) of 
     section 448(c) shall apply for purposes of this subparagraph.
       ``(C) High net worth individual.--The term `high net worth 
     individual' means a natural person whose net worth exceeds 
     $2,000,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Reportable transaction.--The term `reportable 
     transaction' means any transaction with respect to which 
     information is required under subchapter A of chapter 61 to 
     be included with a taxpayer's return or statement because, as 
     determined under regulations prescribed under section 6011, 
     such transaction is of a type which the Secretary determines 
     as having a potential for tax avoidance or evasion.
       ``(2) Listed transaction.--Except as provided in 
     regulations, the term `listed transaction' means a reportable 
     transaction--
       ``(A) which is the same as, or similar to, a transaction 
     specifically identified by the Secretary as a tax avoidance 
     transaction for purposes of section 6011, or
       ``(B) which is expected to produce a tax result which is 
     the same as, or similar to, the tax result in a transaction 
     which is so specified.
       ``(d) Penalty Reported to SEC.--In the case of a person--
       ``(1) which is required to file periodic reports under 
     section 13 or 15(d) of the Securities Exchange Act of 1934 or 
     is required to be consolidated with another person for 
     purposes of such reports, and
       ``(2) which--
       ``(A) is required to pay a penalty with respect to a listed 
     transaction under this section, or
       ``(B) is required to pay a penalty under section 6662(a)(2) 
     with respect to any reportable transaction at a rate 
     prescribed under section 6662(i)(3),

     the requirement to pay such penalty shall be disclosed in 
     such reports filed by such person for such periods as the 
     Secretary shall specify. Failure to make a disclosure in 
     accordance with the preceding sentence shall be treated as a 
     failure to which the penalty under subsection (b)(2) applies.
       ``(e) Coordination With Other Penalties.--The penalty 
     imposed by this section is in addition to any penalty imposed 
     under section 6662.''
       (b) Conforming Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by inserting after 
     the item relating to section 6707 the following:

``Sec. 6707A. Penalty for failure to include reportable transaction 
              information with return or statement.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 102. INCREASE IN ACCURACY-RELATED PENALTIES FOR LISTED 
                   TRANSACTIONS AND OTHER REPORTABLE TRANSACTIONS 
                   HAVING A TAX AVOIDANCE PURPOSE.

       (a) Increase in Penalty.--Subsection (a) of section 6662 
     (relating to imposition of penalty) is amended to read as 
     follows:
       ``(a) Imposition of Penalty.--
       ``(1) In general.--If this section applies to any portion 
     of an underpayment of tax required to be shown on a return, 
     there shall be added to the tax an amount equal to 20 percent 
     of the portion of the underpayment to which this section 
     applies.
       ``(2) Understatement of income tax attributable to listed 
     transactions or other reportable transactions having a 
     significant tax avoidance purpose.--If a taxpayer has a 
     reportable transaction income tax understatement (as defined 
     in subsection (i)) for any taxable year, there shall be added 
     to the tax an amount equal to 20 percent of the amount of the 
     understatement. Except as provided in subsection (i)(4)(B), 
     such understatement shall not be taken into account for 
     purposes of paragraph (1).''
       (b) Reportable Transaction Income Tax Understatement.--
     Section 6662 (relating to imposition of accuracy-related 
     penalty) is amended by adding at the end the following new 
     subsection:
       ``(i) Understatement of Income Tax Attributable to Listed 
     Transactions and Other Reportable Transactions Having a 
     Significant Tax Avoidance Purpose.--
       ``(1) Reportable transaction income tax understatement.--
     For purposes of subsection (a)(2), the term `reportable 
     transaction income tax understatement' means the sum of--
       ``(A) the product of--
       ``(i) the amount of the increase (if any) in taxable income 
     which results from a difference between the taxpayer's 
     treatment of items to which this subsection applies (as shown 
     on the taxpayer's return of tax) and the proper tax treatment 
     of such items, and
       ``(ii) the highest rate of tax imposed by section 1 
     (section 11 in the case of a taxpayer which is a 
     corporation), and
       ``(B) the amount of the decrease (if any) in the credits 
     allowed against the tax imposed by subtitle A which results 
     from a difference between the taxpayer's treatment of items 
     to which this subsection applies (as shown on the taxpayer's 
     return of tax) and the proper tax treatment of such items.

     For purposes of subparagraph (A), any reduction of the excess 
     of deductions allowed for the taxable year over gross income 
     for such year, and any reduction in the amount of capital 
     losses which would (without regard to section 1211) be 
     allowed for such year, shall be treated as an increase in 
     taxable income.
       ``(2) Items to which subsection applies.--This subsection 
     shall apply to any item which is attributable to--
       ``(A) any listed transaction, or
       ``(B) any reportable transaction (other than a listed 
     transaction) if a significant purpose of such transaction is 
     the avoidance or evasion of Federal income tax.
       ``(3) Higher penalty for nondisclosed listed and other 
     avoidance transactions.--In the case of any portion of a 
     reportable transaction income tax understatement attributable 
     to a transaction to which section 6664(c)(1) does not apply 
     by reason of section 6664(c)(2)(A), the rate of tax under 
     subsection (a)(2) shall be increased by 5 percent (10 percent 
     in the case of a listed transaction).
       ``(4) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Reportable and listed transactions.--The terms 
     `reportable transaction' and `listed transaction' have the 
     respective meanings given to such terms by section 6707A(c).
       ``(B) Coordination with determinations of whether other 
     understatements are substantial.--Reportable transaction 
     income tax understatements shall be taken into account under 
     subsection (d)(1) in determining whether any understatement 
     (which is not a reportable transaction income tax 
     understatement) is a substantial understatement.
       ``(C) Special rule for amended returns.--Except as provided 
     in regulations, in no event shall any tax treatment included 
     with an amendment or supplement to a return of tax be taken 
     into account in determining the amount of any reportable 
     transaction income tax understatement if the amendment or 
     supplement is filed after the earlier of the date the 
     taxpayer is first contacted by the Secretary regarding the 
     examination of the return or such other date as is specified 
     by the Secretary.''
       (c) Reasonable Cause Exception.--Subsection (c) of section 
     6664 (relating to reasonable cause exception) is amended by 
     redesignating paragraphs (2) and (3) as paragraphs (4) and 
     (5), respectively, and by inserting after paragraph (1) the 
     following new paragraphs:
       ``(2) Special rules for understatements attributable to 
     listed and certain other tax avoidance transactions.--
     Paragraph (1) shall not apply to the portion of any 
     reportable transaction income tax understatement attributable 
     to an item referred to in section 6662(i)(2) unless--
       ``(A) the relevant facts affecting the tax treatment of 
     such item are adequately disclosed in accordance with the 
     regulations prescribed under section 6011,
       ``(B) there is or was substantial authority for such 
     treatment, and
       ``(C) the taxpayer reasonably believed that such treatment 
     was more likely than not the proper treatment.
       ``(3) Rules relating to reasonable belief.--For purposes of 
     paragraph (2)(C)--
       ``(A) In general.--A taxpayer shall be treated as having a 
     reasonable belief with respect to the tax treatment of an 
     item only if such belief--
       ``(i) is based on the facts and law that exist at the time 
     the return of tax which includes such tax treatment is filed, 
     and
       ``(ii) relates solely to the taxpayer's chances of success 
     on the merits of such treatment and does not take into 
     account the possibility that a return will not be audited, 
     such treatment will not be raised on

[[Page S4161]]

     audit, or such treatment will be resolved through settlement 
     if it is raised.
       ``(B) Certain opinions may not be relied upon.--
       ``(i) In general.--An opinion of a tax advisor may not be 
     relied upon to establish the reasonable belief of a taxpayer 
     if--

       ``(I) the tax advisor is described in clause (ii), or
       ``(II) the opinion is described in clause (iii).

       ``(ii) Disqualified tax advisors.--A tax advisor is 
     described in this clause if the tax advisor is a material 
     advisor (within the meaning of section 6111(b)(1)) who--

       ``(I) is compensated directly or indirectly by another 
     material advisor with respect to the transaction,
       ``(II) has a contingent fee arrangement with respect to the 
     transaction,
       ``(III) has any type of referral agreement or other similar 
     agreement or understanding with another material advisor 
     which relates to the transaction, or
       ``(IV) has any other characteristic which, as determined 
     under regulations prescribed by the Secretary, is indicative 
     of a potential conflict of interest or compromise of 
     independence.

       ``(iii) Disqualified opinions.--An opinion is described in 
     this clause if the opinion--

       ``(I) is based on unreasonable factual or legal assumptions 
     (including assumptions as to future events),
       ``(II) unreasonably relies on representations, statements, 
     findings, or agreements of the taxpayer or any other person,
       ``(III) does not identify and consider all relevant facts, 
     or
       ``(IV) fails to meet any other requirement as the Secretary 
     may prescribe.''

       (d) Conforming Amendments.--
       (1) Subparagraph (C) of section 461(i)(3) is amended by 
     striking ``section 6662(d)(2)(C)(iii)'' and inserting 
     ``section 1274(b)(3)(C)''.
       (2) Paragraph (3) of section 1274(b) is amended--
       (A) by striking ``(as defined in section 
     6662(d)(2)(C)(iii))'' in subparagraph (B)(i), and
       (B) by adding at the end the following new subparagraph:
       ``(C) Tax shelter.--For purposes of subparagraph (B), the 
     term `tax shelter' means--
       ``(i) a partnership or other entity,
       ``(ii) any investment plan or arrangement, or
       ``(iii) any other plan or arrangement,

     if a significant purpose of such partnership, entity, plan, 
     or arrangement is the avoidance or evasion of Federal income 
     tax.''
       (3) Section 6662(d)(2) is amended by striking subparagraphs 
     (C) and (D).
       (4) Subsection (b) of section 7525 is amended by striking 
     ``section 6662(d)(2)(C)(iii)'' and inserting ``section 
     1274(b)(3)(C)''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 103. MODIFICATIONS OF SUBSTANTIAL UNDERSTATEMENT PENALTY 
                   FOR NONREPORTABLE TRANSACTIONS.

       (a) Substantial Understatement of Corporations.--Section 
     6662(d)(1)(B) (relating to special rule for corporations) is 
     amended to read as follows:
       ``(B) Special rule for corporations.--In the case of a 
     corporation other than an S corporation or a personal holding 
     company (as defined in section 542), there is a substantial 
     understatement of income tax for any taxable year if the 
     amount of the understatement for the taxable year exceeds the 
     lesser of--
       ``(i) 10 percent of the tax required to be shown on the 
     return for the taxable year, or
       ``(ii) $10,000,000.''
       (b) Reduction for Understatement of Taxpayer Due to 
     Position of Taxpayer or Disclosed Item.--
       (1) In general.--Section 6662(d)(2)(B)(i) (relating to 
     substantial authority) is amended to read as follows:
       ``(i) the tax treatment of any item by the taxpayer if the 
     taxpayer had reasonable belief that the tax treatment was 
     more likely than not the proper treatment, or''.
       (2) Conforming amendment.--Section 6662(d) is amended by 
     adding at the end the following new paragraph:
       ``(3) Secretarial list.--For purposes of this subsection, 
     section 6664(c)(2), and section 6694(a)(1), the Secretary may 
     prescribe a list of positions--
       ``(A) for which the Secretary believes there is not 
     substantial authority or there is no reasonable belief that 
     the tax treatment is more likely than not the proper tax 
     treatment, and
       ``(B) which affect a significant number of taxpayers.

     Such list (and any revisions thereof) shall be published in 
     the Federal Register or the Internal Revenue Bulletin.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 104. TAX SHELTER EXCEPTION TO CONFIDENTIALITY PRIVILEGES 
                   RELATING TO TAXPAYER COMMUNICATIONS.

       (a) In General.--Section 7525(b) (relating to section not 
     to apply to communications regarding corporate tax shelters) 
     is amended to read as follows:
       ``(b) Section Not To Apply To Communications Regarding Tax 
     Shelters.--The privilege under subsection (a) shall not apply 
     to any written communication which is--
       ``(1) between a federally authorized tax practitioner and--
       ``(A) any person,
       ``(B) any director, officer, employee, agent, or 
     representative of the person, or
       ``(C) any other person holding a capital or profits 
     interest in the person, and
       ``(2) in connection with the promotion of the direct or 
     indirect participation of the person in any tax shelter (as 
     defined in section 1274(b)(3)(C)).''
       (b) Effective Date.--The amendment made by this section 
     shall apply to communications made on or after the date of 
     the enactment of this Act.

           TITLE II--PROMOTER AND PREPARER RELATED PROVISIONS

       Subtitle A--Provisions Relating To Reportable Transactions

     SEC. 201. DISCLOSURE OF REPORTABLE TRANSACTIONS.

       (a) In General.--Section 6111 (relating to registration of 
     tax shelters) is amended to read as follows:

     ``SEC. 6111. DISCLOSURE OF REPORTABLE TRANSACTIONS.

       ``(a) In General.--Each material advisor with respect to 
     any reportable transaction shall make a return (in such form 
     as the Secretary may prescribe) setting forth--
       ``(1) information identifying and describing the 
     transaction,
       ``(2) information describing the advice provided by such 
     advisor, including any potential tax benefits represented to 
     result from the transaction, and
       ``(3) such other information as the Secretary may 
     prescribe.

     Such return shall be filed on the first business day 
     following the earliest date on which such advisor provides 
     any material aid, assistance, or advice with respect to 
     organizing, promoting, selling, implementing, or carrying out 
     the transaction (or such later date as the Secretary may 
     prescribe).
       ``(b) Definitions.--For purposes of this section--
       ``(1) Material advisor.--The term `material advisor' means 
     any person--
       ``(A) who provides any material aid, assistance, or advice 
     with respect to organizing, promoting, selling, implementing, 
     or carrying out any reportable transaction, and
       ``(B) who directly or indirectly derives gross income from 
     such advice or assistance.
       ``(2) Reportable transaction.--The term `reportable 
     transaction' has the meaning given to such term by section 
     6707A(c).
       ``(c) Regulations.--The Secretary may prescribe regulations 
     which provide--
       ``(1) that only 1 person shall be required to meet the 
     requirements of subsection (a) in cases in which 2 or more 
     persons would otherwise be required to meet such 
     requirements,
       ``(2) exemptions from the requirements of this section, and
       ``(3) such rules as may be necessary or appropriate to 
     carry out the purposes of this section.''
       (b) Conforming Amendments.--
       (1) The item relating to section 6111 in the table of 
     sections for subchapter B of chapter 61 is amended to read as 
     follows:

``Sec. 6111. Disclosure of reportable transactions.''

       (2)(A) So much of section 6112 as precedes subsection (c) 
     thereof is amended to read as follows:

     ``SEC. 6112. MATERIAL ADVISORS OF REPORTABLE TRANSACTIONS 
                   MUST KEEP LISTS OF ADVISEES.

       ``(a) In General.--Each material advisor (as defined in 
     section 6111) with respect to any reportable transaction (as 
     defined in section 6707A(c)) shall maintain (in such manner 
     as the Secretary may by regulations prescribe) a list--
       ``(1) identifying each person with respect to whom such 
     advisor acted as such a material advisor with respect to such 
     transaction, and
       ``(2) containing such other information as the Secretary 
     may by regulations require.''
       (B) Section 6112 is amended by redesignating subsection (c) 
     as subsection (b).
       (C) Section 6112(b)(1)(A), as redesignated by subparagraph 
     (B), is amending by inserting ``written'' before ``request''.
       (D) The item relating to section 6112 in the table of 
     sections for subchapter B of chapter 61 is amended to read as 
     follows:

``Sec. 6112. Material advisors of reportable transactions must keep 
              lists of advisees.''

       (3)(A) The heading for section 6708 is amended to read as 
     follows:

     ``SEC. 6708. FAILURE TO MAINTAIN LISTS OF ADVISEES WITH 
                   RESPECT TO REPORTABLE TRANSACTIONS.''

       (B) The item relating to section 6708 in the table of 
     sections for part I of subchapter B of chapter 68 is amended 
     to read as follows:

``Sec. 6708. Failure to maintain lists of advisees with respect to 
              reportable transactions.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 202. MODIFICATIONS TO PENALTY FOR FAILURE TO REGISTER 
                   TAX SHELTERS.

       (a) In General.--Section 6707 (relating to failure to 
     furnish information regarding tax shelters) is amended to 
     read as follows:

[[Page S4162]]

     ``SEC. 6707. FAILURE TO FURNISH INFORMATION REGARDING 
                   REPORTABLE TRANSACTIONS.

       ``(a) In General.--If a person who is required to file a 
     return under section 6111(a) with respect to any reportable 
     transaction--
       ``(1) fails to file such return on or before the date 
     prescribed therefor, or
       ``(2) files false or incomplete information with the 
     Secretary with respect to such transaction,
     such person shall pay a penalty with respect to such return 
     in the amount determined under subsection (b).
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     penalty imposed under subsection (a) with respect to any 
     failure shall be $50,000.
       ``(2) Listed transactions.--The penalty imposed under 
     subsection (a) with respect to any listed transaction shall 
     be an amount equal to the greater of--
       ``(A) $200,000, or
       ``(B) 50 percent of the fees paid to such person with 
     respect to aid, assistance, or advice which is provided with 
     respect to the reportable transaction before the date the 
     return is filed under section 6111.

     Subparagraph (B) shall be applied by substituting `75 
     percent' for `50 percent' in the case of an intentional 
     failure or act described in subsection (a).
       ``(c) Reportable and Listed Transactions.--The terms 
     `reportable transaction' and `listed transaction' have the 
     respective meanings given to such terms by section 
     6707A(c).''
       (b) Clerical Amendment.--The item relating to section 6707 
     in the table of sections for part I of subchapter B of 
     chapter 68 is amended by striking ``tax shelters'' and 
     inserting ``reportable transactions''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to failures occurring after the date of the 
     enactment of this Act.

     SEC. 203. MODIFICATION OF PENALTY FOR FAILURE TO MAINTAIN 
                   LISTS OF INVESTORS.

       (a) In General.--Subsection (a) of section 6708 is amended 
     to read as follows:
       ``(a) Imposition of Penalty.--
       ``(1) In general.--If any person who is required to 
     maintain a list under section 6112(a) fails to make such list 
     available to the Secretary in accordance with section 
     6112(b)(1)(A) within 20 days after the date of the 
     Secretary's request, such person shall pay a penalty of 
     $10,000 for each day of such failure after such 20th day.
       ``(2) Reasonable cause exception.--No penalty shall be 
     imposed by paragraph (1) with respect to the failure on any 
     day if such failure is due to reasonable cause.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to failures occurring after the date of the 
     enactment of this Act.

     SEC. 204. MODIFICATION OF ACTIONS TO ENJOIN SPECIFIED CONDUCT 
                   RELATED TO TAX SHELTERS AND REPORTABLE 
                   TRANSACTIONS.

       (a) In General.--Section 7408 (relating to action to enjoin 
     promoters of abusive tax shelters, etc.) is amended by 
     redesignating subsection (c) as subsection (d) and by 
     striking subsections (a) and (b) and inserting the following 
     new subsections:
       ``(a) Authority To Seek Injunction.--A civil action in the 
     name of the United States to enjoin any person from further 
     engaging in specified conduct may be commenced at the request 
     of the Secretary. Any action under this section shall be 
     brought in the district court of the United States for the 
     district in which such person resides, has his principal 
     place of business, or has engaged in specified conduct. The 
     court may exercise its jurisdiction over such action (as 
     provided in section 7402(a)) separate and apart from any 
     other action brought by the United States against such 
     person.
       ``(b) Adjudication and Decree.--In any action under 
     subsection (a), if the court finds--
       ``(1) that the person has engaged in any specified conduct, 
     and
       ``(2) that injunctive relief is appropriate to prevent 
     recurrence of such conduct,
     the court may enjoin such person from engaging in such 
     conduct or in any other activity subject to penalty under 
     this title.
       ``(c) Specified Conduct.--For purposes of this section, the 
     term `specified conduct' means any action, or failure to take 
     action, subject to penalty under section 6700, 6701, 6707, or 
     6708.''
       (b) Conforming Amendments.--
       (1) The heading for section 7408 is amended to read as 
     follows:

     ``SEC. 7408. ACTIONS TO ENJOIN SPECIFIED CONDUCT RELATED TO 
                   TAX SHELTERS AND REPORTABLE TRANSACTIONS.''

       (2) The table of sections for subchapter A of chapter 67 is 
     amended by striking the item relating to section 7408 and 
     inserting the following new item:

``Sec. 7408. Actions to enjoin specified conduct related to tax 
              shelters and reportable transactions.''

       (c) Effective Date.--The amendment made by this section 
     shall take effect on the day after the date of the enactment 
     of this Act.

                      Subtitle B--Other Provisions

     SEC. 211. UNDERSTATEMENT OF TAXPAYER'S LIABILITY BY INCOME 
                   TAX RETURN PREPARER.

       (a) Standards Conformed to Taxpayer Standards.--Section 
     6694(a) (relating to understatements due to unrealistic 
     positions) is amended--
       (1) by striking ``realistic possibility of being sustained 
     on its merits'' in paragraph (1) and inserting ``reasonable 
     belief that the tax treatment in such position was more 
     likely than not the proper treatment'',
       (2) by striking ``or was frivolous'' in paragraph (3) and 
     inserting ``or there was no reasonable basis for the tax 
     treatment of such position'', and
       (3) by striking ``Unrealistic'' in the heading and 
     inserting ``Improper''.
       (b) Amount of Penalty.--Section 6694 is amended--
       (1) by striking ``$250'' in subsection (a) and inserting 
     ``$1,000'', and
       (2) by striking ``$1,000'' in subsection (b) and inserting 
     ``$5,000''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to documents prepared after the date of the 
     enactment of this Act.

     SEC. 212. REPORT ON EFFECTIVENESS OF PENALTY ON FAILURE TO 
                   REPORT INTERESTS IN FOREIGN FINANCIAL ACCOUNTS.

       The Secretary of the Treasury or his delegate shall report 
     each year to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate 
     on--
       (1) the number of civil and criminal penalties imposed on 
     failures to meet the reporting and recordkeeping requirements 
     of section 5314 of title 31, United States Code, with respect 
     to interests held in foreign financial accounts, and
       (2) the average amount of monetary penalties so imposed.

     The Secretary shall include with such report an analysis of 
     the effectiveness of such reporting and recordkeeping 
     requirements in preventing the avoidance or evasion of 
     Federal income taxes and any recommendations to improve such 
     requirements and the enforcement of such requirements.

     SEC. 213. FRIVOLOUS TAX SUBMISSIONS.

       (a) Civil Penalties.--Section 6702 is amended to read as 
     follows:

     ``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

       ``(a) Civil Penalty for Frivolous Tax Returns.--A person 
     shall pay a penalty of $5,000 if--
       ``(1) such person files what purports to be a return of a 
     tax imposed by this title but which--
       ``(A) does not contain information on which the substantial 
     correctness of the self-assessment may be judged, or
       ``(B) contains information that on its face indicates that 
     the self-assessment is substantially incorrect; and
       ``(2) the conduct referred to in paragraph (1)--
       ``(A) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(B) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(b) Civil Penalty for Specified Frivolous Submissions.--
       ``(1) Imposition of Penalty.--Except as provided in 
     paragraph (3), any person who submits a specified frivolous 
     submission shall pay a penalty of $5,000.
       ``(2) Specified frivolous submission.--For purposes of this 
     section--
       ``(A) Specified frivolous submission.--The term `specified 
     frivolous submission' means a specified submission if any 
     portion of such submission--
       ``(i) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(ii) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(B) Specified submission.--The term `specified 
     submission' means--
       ``(i) a request for a hearing under--

       ``(I) section 6320 (relating to notice and opportunity for 
     hearing upon filing of notice of lien), or
       ``(II) section 6330 (relating to notice and opportunity for 
     hearing before levy), and

       ``(ii) an application under--

       ``(I) section 7811 (relating to taxpayer assistance 
     orders),
       ``(II) section 6159 (relating to agreements for payment of 
     tax liability in installments), or
       ``(III) section 7122 (relating to compromises).

       ``(3) Opportunity to withdraw submission.--If the Secretary 
     provides a person with notice that a submission is a 
     specified frivolous submission and such person withdraws such 
     submission promptly after such notice, the penalty imposed 
     under paragraph (1) shall not apply with respect to such 
     submission.
       ``(c) Listing of Frivolous Positions.--The Secretary shall 
     prescribe (and periodically revise) a list of positions which 
     the Secretary has identified as being frivolous for purposes 
     of this subsection. The Secretary shall not include in such 
     list any position that the Secretary determines meets the 
     requirement of section 6662(d)(2)(B)(ii)(II).
       ``(d) Reduction of Penalty.--The Secretary may reduce the 
     amount of any penalty imposed under this section if the 
     Secretary determines that such reduction would promote 
     compliance with and administration of the Federal tax laws.
       ``(e) Penalties in Addition to Other Penalties.--The 
     penalties imposed by this section shall be in addition to any 
     other penalty provided by law.''
       (b) Treatment of Frivolous Requests for Hearings Before 
     Levy.--

[[Page S4163]]

       (1) Frivolous requests disregarded.--Section 6330 (relating 
     to notice and opportunity for hearing before levy) is amended 
     by adding at the end the following new subsection:
       ``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding 
     any other provision of this section, if the Secretary 
     determines that any portion of a request for a hearing under 
     this section or section 6320 meets the requirement of clause 
     (i) or (ii) of section 6702(b)(2)(A), then the Secretary may 
     treat such portion as if it were never submitted and such 
     portion shall not be subject to any further administrative or 
     judicial review.''
       (2) Preclusion from raising frivolous issues at hearing.--
     Section 6330(c)(4) is amended--
       (A) by striking ``(A)'' and inserting ``(A)(i)'';
       (B) by striking ``(B)'' and inserting ``(ii)'';
       (C) by striking the period at the end of the first sentence 
     and inserting ``; or''; and
       (D) by inserting after subparagraph (A)(ii) (as so 
     redesignated) the following:
       ``(B) the issue meets the requirement of clause (i) or (ii) 
     of section 6702(b)(2)(A).''
       (3) Statement of grounds.--Section 6330(b)(1) is amended by 
     striking ``under subsection (a)(3)(B)'' and inserting ``in 
     writing under subsection (a)(3)(B) and states the grounds for 
     the requested hearing''.
       (c) Treatment of Frivolous Requests for Hearings Upon 
     Filing of Notice of Lien.--Section 6320 is amended--
       (1) in subsection (b)(1), by striking ``under subsection 
     (a)(3)(B)'' and inserting ``in writing under subsection 
     (a)(3)(B) and states the grounds for the requested hearing'', 
     and
       (2) in subsection (c), by striking ``and (e)'' and 
     inserting ``(e), and (g)''.
       (d) Treatment of Frivolous Applications for Offers-in-
     Compromise and Installment Agreements.--Section 7122 is 
     amended by adding at the end the following new subsection:
       ``(e) Frivolous Submissions, Etc.--Notwithstanding any 
     other provision of this section, if the Secretary determines 
     that any portion of an application for an offer-in-compromise 
     or installment agreement submitted under this section or 
     section 6159 meets the requirement of clause (i) or (ii) of 
     section 6702(b)(2)(A), then the Secretary may treat such 
     portion as if it were never submitted and such portion shall 
     not be subject to any further administrative or judicial 
     review.''
       (e) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by striking the item 
     relating to section 6702 and inserting the following new 
     item:

``Sec. 6702. Frivolous tax submissions.''

       (f) Effective Date.--The amendments made by this section 
     shall apply to submissions made and issues raised after the 
     date on which the Secretary first prescribes a list under 
     section 6702(c) of the Internal Revenue Code of 1986, as 
     amended by subsection (a).

     SEC. 214. REGULATION OF INDIVIDUALS PRACTICING BEFORE THE 
                   DEPARTMENT OF TREASURY.

       (a) Censure; Imposition of Penalty.--
       (1) In general.--Section 330(b) of title 31, United States 
     Code, is amended--
       (A) by inserting ``, or censure,'' after ``Department'', 
     and
       (B) by adding at the end the following new flush sentence:

     ``The Secretary may impose a monetary penalty on any 
     representative described in the preceding sentence. If the 
     representative was acting on behalf of an employer or any 
     firm or other entity in connection with the conduct giving 
     rise to such penalty, the Secretary may impose a monetary 
     penalty on such employer, firm, or entity if it knew, or 
     reasonably should have known, of such conduct. Such penalty 
     shall not exceed the gross income derived (or to be derived) 
     from the conduct giving rise to the penalty and may be in 
     addition to, or in lieu of, any suspension, disbarment, or 
     censure.''
       (2) Effective date.--The amendments made by this subsection 
     shall apply to actions taken after the date of the enactment 
     of this Act.
       (b) Tax Shelter Opinions, Etc.--Section 330 of such title 
     31 is amended by adding at the end the following new 
     subsection:
       ``(d) Nothing in this section or in any other provision of 
     law shall be construed to limit the authority of the 
     Secretary of the Treasury to impose standards applicable to 
     the rendering of written advice with respect to any entity, 
     transaction plan or arrangement, or other plan or 
     arrangement, which is of a type which the Secretary 
     determines as having a potential for tax avoidance or 
     evasion.''

     SEC. 215. PENALTY ON PROMOTERS OF TAX SHELTERS.

       (a) Penalty on Promoting Abusive Tax Shelters.--Section 
     6700(a) is amended by adding at the end the following new 
     sentence: ``Notwithstanding the first sentence, if an 
     activity with respect to which a penalty imposed under this 
     subsection involves a statement described in paragraph 
     (2)(A), the amount of the penalty shall be equal to 50 
     percent of the gross income derived (or to be derived) from 
     such activity by the person on which the penalty is 
     imposed.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to activities after the date of the enactment of 
     this Act.

  Mr. GRASSLEY. Mr. President, I rise today to co-sponsor legislation, 
the ``Tax Shelter Transparency Act'' which will arrest the 
proliferation of tax shelters.
  We have known for many years that abusive tax shelters, which are 
structured to exploit unintended consequences of our complicated 
Federal income tax system, erode the Federal tax base and the public's 
confidence in the tax system. Such transactions are patently unfair to 
the vast majority of taxpayers who do their best to comply with the 
letter and spirit of the tax law. As a result, the Finance Committee 
has worked exceedingly hard over the past several years to develop 
three legislative discussion drafts for public review and comment. 
Thoughtful and well-considered comments on these drafts have been 
greatly appreciated by the staff and members of the Finance Committee. 
The collaborative efforts of those involved in the discussion drafts 
combined with the recent request for legislative assistance from the 
Treasury Department and IRS produced today's revised approach for 
dealing with abusive tax avoidance transactions.
  Above all, the Tax Shelter Transparency Act encourages taxpayer 
disclosure of potentially abusive tax avoidance transactions. It is 
surprising and unfortunate that taxpayers, though required to disclose 
tax shelter transactions under present law, have refused to comply. The 
Treasury Department and IRS report that the 2001 tax filing season 
produced a mere 272 tax shelter return disclosures from only 99 
corporate taxpayers, a fraction of transactions requiring such 
disclosure. The Tax Shelter Transparency Act will curb non-compliance 
by providing clearer and more objective rules for the reporting of 
potential tax shelters and by providing strong penalties for anyone who 
refuses to comply with the revised disclosure requirements.
  The legislation has been carefully structured to reward those who are 
forthcoming with disclosure. I wholeheartedly agree with the remarks 
offered by the recent Treasury Assistant Secretary for Tax Policy, that 
``if a taxpayer is comfortable entering into a transaction, a promoter 
is comfortable selling it, and an advisor is comfortable blessing it, 
they all should be comfortable disclosing it to the IRS.'' Transparency 
is essential to an evaluation by the IRS and ultimately by the Congress 
of the United States as to whether the tax benefits generated by 
complex business transactions are appropriate interpretations of 
existing tax law. To the extent such interpretations were unintended, 
the bill allows Congress to amend or clarify existing tax law. To the 
extent such interpretations are appropriate, all taxpayers, from the 
largest U.S. multinational conglomerate to the smallest local feedstore 
owner in Iowa, will benefit when transactions are publicly sanctioned 
in the form of an ``angel list'' of good transactions. This legislation 
accomplishes both of these objectives.
                                 ______
                                 
      By Mr. KENNEDY (for himself and Mrs. Clinton):
  S. 2499. A bill to amend the Federal Food, Drug, and Cosmetic Act to 
establish labeling requirements regarding allergenic substances in 
food, and for other purposes; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. KENNEDY. Mr. President, I am pleased today to join my colleagues 
Senator Clinton and Congresswoman Nita Lowey in introducing legislation 
to improve the labeling of allergens in food.
  American families deserve to feel confident about the safety of the 
food on their tables. The Food Allergen Consumer Protection Act will 
allow the seven million Americans with food allergies to identify more 
easily a product's ingredients, avoid foods that may harm them, and 
stay healthy. We anticipate that this legislation will reduce the 
number, currently estimated to be 150 yearly, of Americans who die due 
to the ingestion of allergenic foods.
  The Food Allergen Consumer Production Act will require that food 
ingredient statements on food packages identify in common language when 
an ingredient, including a flavoring, coloring, or other additive, is 
itself, or is derived from, one of the eight main food allergens, or 
from grains containing gluten. This legislation will also make the 
ingredient label on foods easier to read, and require it to include a 
working telephone number, including one for telecommunication devices 
for deaf persons.

[[Page S4164]]

  The Food Allergen Consumer Protection Act will require food 
manufacturers to minimize cross-contamination with food allergens 
between foods produced in the same facility or on the same production 
line. It will require the use of ``may contain'' or other advisory 
language in food labeling when steps to reduce such cross-contamination 
will not eliminate it. This legislation also preserves the Food and 
Drug Administration's current authority to regulate the safety of 
certain products that are bioengineered to contain proteins that cause 
allergic reactions.
  The Food Allergen Consumer Protection Act will also require the 
Centers for Disease Control and Prevention to track deaths related to 
food allergies, and it will direct the National Institutes of Health to 
develop a plan for research activities concerning food allergies.
  I urge my colleagues in the Senate to support this legislation that 
will do so much to improve the lives of those with food allergies. 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. 2499

       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 ``Food Allergen Consumer 
     Protection Act''.

     SEC. 2. FINDINGS.

       The Congress finds as follows:
       (1) Approximately 7,000,000 Americans suffer from food 
     allergies. Every year roughly 30,000 people receive emergency 
     room treatment due to the ingestion of allergenic foods, and 
     an estimated 150 Americans die from anaphylactic shock caused 
     by a food allergy.
       (2) Eight major foods--milk, egg, fish, Crustacea, tree 
     nuts, wheat, peanuts, and soybeans--cause 90 percent of 
     allergic reactions. At present, there is no cure for food 
     allergies. A food allergic consumer depends on a product's 
     label to obtain accurate and reliable ingredient information 
     so as to avoid food allergens.
       (3) Current Food and Drug Administration regulations exempt 
     spices, flavorings, and certain colorings and additives from 
     ingredient labeling requirements that would allow consumers 
     to avoid those to which they are allergic. Such unlabeled 
     food allergens may pose a serious health threat to those 
     susceptible to food allergies.
       (4) A recent Food and Drug Administration study found that 
     25 percent of bakery products, ice creams, and candies that 
     were inspected failed to list peanuts and eggs, which can 
     cause potentially fatal allergic reactions. The mislabeling 
     of foods puts those with a food allergy at constant risk.
       (5) In that study, the Food and Drug Administration found 
     that only slightly more than half of inspected manufacturers 
     checked their products to ensure that all ingredients were 
     accurately reflected on the labels. Furthermore, the number 
     of recalls because of unlabeled allergens rose to 121 in 2000 
     from about 35 a decade earlier. In part, mislabeling occurs 
     because potentially fatal allergens are introduced into the 
     manufacturing process when production lines and cooking 
     utensils are shared or used to produce multiple products.
       (6) Individuals who have food allergies may outgrow their 
     allergy if they strictly avoid consuming the allergen. 
     However, some scientists believe that because low levels of 
     allergens are unintentionally present in foods, those with an 
     allergy are unable to keep from being repeatedly exposed to 
     the very foods they are allergic to. Good manufacturing 
     practices can minimize the unintentional presence of food 
     allergens. In addition, when good manufacturing practices 
     cannot eliminate the potential for cross-contamination, an 
     advisory label on the product can provide additional consumer 
     protection.
       (7) The Food and Drug Administration is the Nation's 
     principal consumer protection agency, charged with protecting 
     and promoting public health through premarket and postmarket 
     regulation of food. The agency must have both the necessary 
     authority to ensure that foods are properly labeled and 
     produced using good manufacturing practices and the ability 
     to penalize manufacturers who violate our food safety laws.
       (8) Americans deserve to have confidence in the safety and 
     labeling of the food on their tables.

     SEC. 3. FOOD LABELING; REQUIREMENT OF INFORMATION REGARDING 
                   ALLERGENIC SUBSTANCES.

       (a) In General.--Section 403 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 343) is amended by adding at the end 
     the following:
       ``(t)(1) If it is not a raw agricultural commodity and it 
     is, or it intentionally bears or contains, a known food 
     allergen, unless its label bears, in bold face type, the 
     common or usual name of the known food allergen and the 
     common or usual name of the food source described in 
     subparagraph (3)(A) from which the known food allergen is 
     derived, except that the name of the food source is not 
     required when the common or usual name of the known food 
     allergen plainly identifies the food source.
       ``(2) The information required under this paragraph may 
     appear in labeling other than the label only if the Secretary 
     finds that such other labeling is sufficient to protect the 
     public health. A finding by the Secretary under this 
     subparagraph is effective upon publication in the Federal 
     Register as a notice (including any change in an earlier 
     finding under this subparagraph).
       ``(3) For purposes of this Act, the term `known food 
     allergen' means any of the following:
       ``(A) Milk, egg, fish, Crustacea, tree nuts, wheat, 
     peanuts, and soybeans.
       ``(B) A proteinaceous substance derived from a food 
     specified in clause (A), unless the Secretary determines that 
     the substance does not cause an allergic response that poses 
     a risk to human health.
       ``(C) Other grains containing gluten (rye, barley, oats, 
     and triticale).
       ``(D) In addition, any food that the Secretary by 
     regulation determines causes an allergic or other adverse 
     response that poses a risk to human health.
       ``(4) Notwithstanding paragraph (g), (i), or (k), or any 
     other law, the labeling requirement under this paragraph 
     applies to spices, flavorings, colorings, or incidental 
     additives that are, or that bear or contain, a known food 
     allergen.
       ``(u) If it is a raw agricultural commodity that is, or 
     bears or contains, a known food allergen, unless it has a 
     label or other labeling that bears in bold face type the 
     common or usual name of the known food allergen and the 
     Secretary has found that the label or other labeling is 
     sufficient to protect the public health. A finding by the 
     Secretary under this paragraph is effective upon publication 
     in the Federal Register as a notice (including any change in 
     an earlier finding under this paragraph).
       ``(w) If the labeling required under paragraphs (g), (i), 
     (k), (t), (u), or (v)--
       ``(1) does not use a single, easy-to-read type style that 
     is black on a white background, using upper and lower case 
     letters and with no letters touching;
       ``(2) does not use at least 8 point type with at least one 
     point leading (i.e., space between two lines of text), 
     provided the total surface area of the food package available 
     to bear labeling exceeds 12 square inches; or
       ``(3) does not comply with regulations issued by the 
     Secretary to make it easy for consumers to read and use such 
     labeling by requiring a format that is comparable to the 
     format required for the disclosure of nutrition information 
     in the food label under section 101.9(d)(1) of title 21, Code 
     of Federal Regulations.''.
       (b) Civil Penalties.--Section 303(g)(2) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 333(g)(2)) is 
     amended--
       (1) in subparagraph (A), by striking ``section 402(a)(2)(B) 
     shall be subject'' and inserting the following: ``section 
     402(a)(2)(B) or regulations under this chapter to minimize 
     the unintended presence of allergens in food, or that is 
     misbranded within the meaning of section 403(t), 403(u), 
     403(v), or 403(w), shall be subject''; and
       (2) in subparagraph (B), by inserting ``or misbranded'' 
     after ``adulterated'' each place such term appears.
       (c) Conforming Amendment.--Section 201 of the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 321) is amended by adding 
     at the end the following:
       ``(ll) The term `known food allergen' has the meaning given 
     such term in section 403(t)(3).''.
       (d) Effective Date.--The amendments made by this section 
     take effect upon the expiration of the 180-day period 
     beginning on the date of the enactment of this Act.

     SEC. 4. UNINTENTIONAL PRESENCE OF KNOWN FOOD ALLERGENS.

       (a) Food Labeling of Such Food Allergens.--Section 403 of 
     the Federal Food, Drug, and Cosmetic Act, as amended by 
     section 3(a) of this Act, is amended by inserting after 
     paragraph (u) the following:
       ``(v) If the presence of a known food allergen in the food 
     is unintentional and its labeling bears a statement that the 
     food may bear or contain the known food allergen, or any 
     similar statement, unless the statement is made in compliance 
     with regulations issued by the Secretary to provide for 
     advisory labeling of the known food allergen.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect upon the expiration of the four-year period 
     beginning on the date of the enactment of this Act, except 
     with respect to the authority of the Secretary of Health and 
     Human Services to engage in rulemaking in accordance with 
     section 5.

     SEC. 5. REGULATIONS.

       (a) In General.--
       (1) Regulations.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Health and Human 
     Services (in this section referred to as the ``Secretary'') 
     shall issue a proposed rule under sections 402, 403, and 
     701(a) of the Federal Food, Drug, and Cosmetic Act to 
     implement the amendments made by this Act. Not later than two 
     years after such date of enactment, the Secretary shall 
     promulgate a final rule under such sections.
       (2) Effective date.--The final rule promulgated under 
     paragraph (1) takes effect upon the expiration of the four-
     year period beginning on the date of the enactment of this 
     Act. If a final rule under such paragraph has not been 
     promulgated as of the expiration of such period, then upon 
     such expiration the proposed rule under such paragraph

[[Page S4165]]

     takes effect as if the proposed rule were a final rule.
       (b) Unintentional Presence of Known Food Allergens.--
       (1) Good manufacturing practices; records.--Regulations 
     under subsection (a) shall require the use of good 
     manufacturing practices to minimize, to the extent 
     practicable, the unintentional presence of allergens in food. 
     Such regulations shall include appropriate record keeping and 
     record inspection requirements.
       (2) Advisory labeling.--In the regulations under subsection 
     (a), the Secretary shall authorize the use of advisory 
     labeling for a known food allergen when the Secretary has 
     determined that good manufacturing practices required under 
     the regulations will not eliminate the unintentional presence 
     of the known food allergen and its presence in the food poses 
     a risk to human health, and the regulations shall otherwise 
     prohibit the use of such labeling.
       (c) Ingredient Labeling Generally.--In regulations under 
     subsection (a), the Secretary shall prescribe a format for 
     labeling, as provided for under section 403(w)(3) of the 
     Federal, Food, Drug, and Cosmetic Act.
       (d) Review by Office of Management and Budget.--If the 
     Office of Management and Budget (in this section referred to 
     as ``OMB'') is to review proposed or final rules under this 
     Act, OMB shall complete its review in 10 working days, after 
     which the rule shall be published immediately in the Federal 
     Register. If OMB fails to complete its review of either the 
     proposed rule or the final rule in 10 working days, the 
     Secretary shall provide the rule to the Office of the Federal 
     Register, which shall publish the rule, and it shall have 
     full effect (subject to applicable effective dates specified 
     in this Act) without review by OMB. If the Secretary does not 
     complete the proposed or final rule so as to provide OMB with 
     10 working days to review the rule and have it published in 
     the Federal Register within the time frames for publication 
     of the rule specified in this section, the rule shall be 
     published without review by OMB.

     SEC. 6. FOOD LABELING; INCLUSION OF TELEPHONE NUMBER.

       (a) In General.--Section 403(e) of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 343(e)) is amended--
       (1) by striking ``and (2)'' and inserting the following: 
     ``(2) in the case of a manufacturer, packer, or distributor 
     whose annual gross sales made or business done in sales to 
     consumers equals or exceeds $500,000, a toll-free telephone 
     number (staffed during reasonable business hours) for the 
     manufacturer, packer, or distributor (including one to 
     accommodate telecommunications devices for deaf persons, 
     commonly known as TDDs); or in the case of a manufacturer, 
     packer, or distributor whose annual gross sales made or 
     business done in sales are less than $500,000, the mailing 
     address or the address of the Internet site for the 
     manufacturer, packer, or distributor; and (3)''; and
       (2) by striking ``clause (2)'' and inserting ``clause 
     (3)''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect upon the expiration of the 180-day period 
     beginning on the date of the enactment of this Act.

     SEC. 7. DATA ON FOOD-RELATED ALLERGIC RESPONSES.

       (a) In General.--Consistent with the findings of the study 
     conducted under subsection (b), the Secretary of Health and 
     Human Services (in this section referred to as the 
     ``Secretary''), acting through the Director of the Centers 
     for Disease Control and Prevention and in consultation with 
     the Commissioner of Foods and Drugs, shall improve the 
     collection of, and (beginning 18 months after the date of the 
     enactment of this Act) annually publish, national data on--
       (1) the prevalence of food allergies, and
       (2) the incidence of deaths, injuries, including 
     anaphylactic shock, hospitalizations, and physician visits, 
     and the utilization of drugs, associated with allergic 
     responses to foods.
       (b) Study.--Not later than one year after the date of the 
     enactment of this Act, the Secretary, in consultation with 
     consumers, providers, State governments, and other relevant 
     parties, shall complete a study for the purposes of--
       (1) determining whether existing systems for the reporting, 
     collection and analysis of national data accurately capture 
     information on the subjects specified in subsection (a); and
       (2) identifying new or alternative systems, or enhancements 
     to existing systems, for the reporting collection and 
     analysis of national data necessary to fulfill the purpose of 
     subsection (a).
       (c) Public and Provider Education.--The Secretary shall, 
     directly or through contracts with public or private 
     entities, educate physicians and other health providers to 
     improve the reporting, collection, and analysis of data on 
     the subjects specified in subsection (a).
       (d) Child Fatality Review Teams.--Insofar as is 
     practicable, activities developed or expanded under this 
     section shall include utilization of child fatality review 
     teams in identifying and assessing child deaths associated 
     with allergic responses to foods.
       (e) Reports to Congress.--Not later than 18 months after 
     the date of the enactment of this Act, the Secretary shall 
     submit to the Congress a report on the progress made with 
     respect to subsections (a) through (d).
       (f) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated $10,000,000 for fiscal year 2003, and such sums 
     as may be necessary for each subsequent fiscal year.
       (g) Effective Date.--This section takes effect on the date 
     of the enactment of this Act.
                                 ______
                                 
      By Mr. ALLARD (for himself, Mr. Sessions, and Mrs. Hutchison):
  S. 2501. A bill to establish requirements arising from the delay or 
restriction on the shipment of special nuclear materials to the 
Savannah River Site, Aiken, South Carolina; to the Committee on Armed 
Services.
  Mr. ALLARD. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2501

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

     SECTION 1. REQUIREMENTS RELATING TO DELAY, RESTRICTION, OR 
                   PROHIBITION ON SHIPMENT OF SPECIAL NUCLEAR 
                   MATERIALS TO SAVANNAH RIVER SITE, AIKEN, SOUTH 
                   CAROLINA.

       (a) Requirements.--Subject to subsection (c), if as of the 
     date of the enactment of this Act, or at any time after that 
     date, the State of South Carolina acts to delay or restrict, 
     or seeks or enforces a judgment to prohibit, the shipment of 
     special nuclear materials (SNM) to the Savannah River Site, 
     Aiken, South Carolina, for processing by the proposed mixed 
     oxide (MOX) fuel fabrication facility at the Savannah River 
     Site, the Secretary of Energy shall--
       (1) reopen the Record of Decision (ROD) on the mixed oxide 
     fuel fabrication facility for purposes of identifying and 
     evaluating alternative locations for the mixed oxide fuel 
     fabrication facility; and
       (2) conduct a study of the costs and implications for the 
     national security of the United States of--
       (A) converting the Savannah River site to an environmental 
     management (EM) closure site; and
       (B) transferring all current and proposed national security 
     activities at the Savannah River Site from the Savannah River 
     Site to other facilities of the National Nuclear Security 
     Administration or the Department of Energy, as appropriate.
       (b) Report on Study.--If the Secretary conducts a study 
     under subsection (a)(2), the Secretary shall submit to the 
     congressional defense committees a report on the study not 
     later than six months after the commencement of the study.
       (c) Contingent Suspension of Applicability of 
     Requirements.--If at any time before the requirements in 
     subsection (a) otherwise go into effect, the Secretary and 
     the State of South Carolina enter into an agreement regarding 
     the shipment of special nuclear materials to the Savannah 
     River Site for processing by the proposed mixed oxide fuel 
     fabrication facility at the Savannah River Site, the 
     requirements in subsection (a) shall not go into effect as 
     long, as determined by the Secretary, as the Secretary and 
     the State of South Carolina comply with the agreement.
       (d) Special Nuclear Materials.--In this section, the term 
     ``special nuclear materials'' includes weapons grade 
     plutonium.

                          ____________________