[Congressional Record Volume 148, Number 63 (Thursday, May 16, 2002)]
[Senate]
[Pages S4494-S4503]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ROCKEFELLER (by request):
  S. 2526. A bill to amend title 38, United States Code, to modify 
provisions governing certain programs administered by the Department of 
Veterans Affairs and for other purposes; to the Committee on Veterans' 
Affairs.
  Mr. ROCKEFELLER. Mr. President, today I introduce legislation 
requested by the Secretary of Veterans Affairs, as a courtesy to the 
Secretary and the Department of Veterans Affairs, VA. Except in unusual 
circumstances, it is my practice to introduce legislation requested by 
the administration so that such measures will be available for review 
and consideration.
  This ``by-request'' bill contains four sections, which amend existing 
sections or provisions of title 38. The first section would expand the 
Secretary of Veterans Affairs' authority to pay plot and interment 
allowances to State veterans cemeteries for all eligible peacetime 
veterans. Currently, the Secretary can only provide a plot allowance if 
the veteran served during wartime, was discharged for a service-
connected disability, was receiving VA disability compensation or 
pension, or died in a VA facility. This amendment would facilitate 
States' participation in VA's State Cemeteries Grant Program, SCGP. 
Under the SCGP, VA pays for the construction of the cemetery, but the 
States bear the future maintenance costs. This provision would allow 
States to receive allowances for approximately 1,200 additional 
interments annually.
  The second section of this bill would authorize the Secretary of 
Veterans Affairs to lease the undeveloped land and unused or underused 
buildings of the National Cemetery System and retain the proceeds from 
these leases, as well as agricultural licenses. The National Cemetery 
Administration, NCA, is endowed with thousands of acres of land, some 
of which is unused because it is not suitable for NCA development or 
has not yet been developed for NCA use. Currently, the NCA is 
authorized to issue limited-term agricultural licenses for these lands, 
and all profits must be deposited with the U.S. Treasury. However, some 
NCA land would be suitable for other purposes. This provision is meant 
to provide the Secretary with greater flexibility in using NCA lands to 
generate revenues, while allowing the NCA to become more self-
sufficient by keeping profits within the administration.
  The third section of this bill would modify amendments made by the 
Veterans' Claims Assistance Act of 2000, VCAA, which imposed a 1-year 
time limit for veterans to submit evidence--such as medical records--
necessary to substantiate their claims for benefits. Prior to the 
enactment of the VCAA, a 1-year time limitation was imposed on 
information--such as complete contact information--necessary to 
complete a veteran's application for benefits. This provision was not 
included in the VCAA. The Secretary asserts that this requires VA to 
keep claims open indefinitely if they lack information for the 
application, while not allowing VA to make a payment on a claim that 
required the veteran to submit evidence to substantiate it, even if the 
claim could be granted on other grounds. This provision would reinstate 
the original time limitation on information for applications and 
rescind the current limitation on evidence to substantiate.
  Section four of this bill would eliminate the reporting requirement 
on certain advance planning projects. Currently, VA cannot obligate 
more than $500,000 from its advance planning fund without submitting a 
report on the proposed obligation to both committees of Congress. 
However, VA argues that such reports are redundant for projects that 
have already been authorized by Congress, creating unnecessary and 
untimely delays. Accordingly, VA proposes that Congress eliminate this 
reporting requirement for already authorized projects.
  Again, Mr. President, I submit this for the review and consideration 
of my colleagues at the request of the administration.
  I ask unanimous consent that the text of the bill and Secretary 
Principi's transmittal letter that accompanied the draft legislation be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2526

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

     SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE.

       (a) Short Title.--This Act may be cited as the ``Veterans' 
     Programs Amendments Act of 2002''.
       (b) References.--Except as otherwise expressly provided, 
     whenever in this Act an amendment is expressed in terms of an 
     amendment to a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title 38, United States Code.

     SEC. 2. BURIAL PLOT ALLOWANCE.

       (a) In General.--Section 2303(b) is amended--
       (1) in the matter preceding paragraph (1), by striking ``a 
     burial allowance under such section 2302, or under such 
     subsection, who was discharged from the active military, 
     naval, or air service for a disability incurred or aggravated 
     in line of duty, or who is a veteran of any war'' and 
     inserting ``burial in a national cemetery under section 2402 
     of this title''; and
       (2) in paragraph (2) by striking ``(other than a veteran 
     whose eligibility for benefits under this subsection is based 
     on being a veteran of any war)'' and inserting ``is eligible 
     for a burial allowance under section 2302 of this title or 
     under subsection (a) of this section, or was discharged from 
     the active military, naval, or air service for a disability 
     incurred or aggravated in line of duty, and such veteran''.
       (b) Applicability.--The amendments made by section 2(a) 
     shall apply with respect to the burial of persons dying on or 
     after the date of enactment of this Act.

     SEC. 3. LEASE OF LAND AND BUILDINGS; RETENTION OF PROCEEDS.

       (a) In General.--Chapter 24 is amended by adding at the end 
     thereof the following new section:

     Sec. 2412. Lease of land and buildings; retention of 
       proceeds.

       ``(a) The Secretary may lease for a term not exceeding 3 
     years undeveloped land and unused or underutilized buildings, 
     or parts or parcels thereof, belonging to the United States 
     and part of the National Cemetery System established by 
     section 2400 of this title. Any lease made to any public or 
     nonprofit organization may be made without regard to the 
     provisions of section 3709 of the Revised Statutes (41 U.S.C. 
     5). Notwithstanding section 321 of the Act of June 30, 1932 
     (40 U.S.C. 303b), or any other provision of law, a lease made 
     pursuant to this subsection to any public or nonprofit 
     organization may provide for the maintenance, protection or 
     restoration by the lessee as a part or all of the 
     consideration for the lease. Prior to execution of any such 
     lease, the Secretary shall give appropriate public notice of 
     the Secretary's intention to do so in the newspaper of the 
     community in which the lands or buildings are located.
       ``(b) Notwithstanding any other provision of law, proceeds 
     from the lease of National Cemetery land or buildings and 
     from agricultural licenses shall be deposited to the National 
     Cemetery Administration account to assist cemetery operations 
     and maintenance of cemetery property.''.
       (b) Clerical Amendments.--The table of sections at the 
     beginning of chapter 24 is amended by adding at the end 
     thereof the following new item:

``2412. Lease of land and buildings; retention of proceeds.''.

     SEC. 4. TIME LIMITATION ON RECEIPT OF CLAIM INFORMATION 
                   PURSUANT TO REQUEST BY DEPARTMENT OF VETERANS 
                   AFFAIRS.

       (a) In General.--Section 5102 is amended by adding at the 
     end thereof the following new subsection:
       ``(c) Time Limitation.--(1) If information that claimant 
     and the claimant's representative, if any, are notified under 
     subsection (b) is necessary to complete an application is not 
     received by the Secretary within one year from the date of 
     such notification, no benefit may be paid or furnished by 
     reason of the claimant's application.
       ``(2) This subsection shall not apply to any application or 
     claim for Government life insurance benefits.''.

[[Page S4495]]

       (b) Repeal of Superseded Provisions.--Section 5103 is 
     amended--
       (1) by striking ``(a) Required Information and Evidence.--
     '' ; and
       (2) by striking subsection (b).
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if enacted on November 9, 2000, 
     immediately after the enactment of the Veterans Claims 
     Assistance Act of 2000 (Public Law 106-475; 114 Stat. 2096).

     SEC. 5. MODIFICATION OF LIMITATION ON OBLIGATIONS FOR ADVANCE 
                   PLANNING.

       Section 8104 is amended by adding at the end thereof the 
     following new subsection:
       ``(g) Subsection (f) shall not apply with respect to the 
     obligation of funds for a project if the project is 
     specifically authorized by law prior to the obligation of 
     funds.''.
     Hon. Richard B. Cheney,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: I am transmitting a draft bill, the 
     ``Veterans' Programs Amendments Act of 2002''. I request that 
     this draft bill be referred to the appropriate committee for 
     prompt consideration and enactment.


                         BURIAL PLOT ALLOWANCE

       Section 2(a) of the draft bill would amend 38 U.S.C. 
     Sec. 2303(b) to authorize payment of the burial plot 
     allowance to states for each veteran interred in a state 
     veterans' cemetery at no cost to the veteran's estate or 
     survivors.
       Under current section 2303(b)(1), the Secretary of Veterans 
     Affairs is authorized to pay to a state a $300 plot or 
     interment allowance for each eligible veteran buried in a 
     qualifying state veterans' cemetery. Such allowance is 
     authorized only if the veteran: (1) was a veteran of any war; 
     (2) was discharged from active service for a service-
     connected disability; (3) was receiving Department of 
     Veterans Affairs (VA) compensation or pension at the time of 
     death; or (4) died in a VA facility. The proposed amendment 
     would expand this authority to permit payment of the plot 
     allowance to states for burial in state veterans' cemeteries 
     of all eligible peacetime veterans.
       This amendment would encourage state participation in the 
     State Cemetery Grants Program (SCGP). In 1978, Congress 
     established the SCGP to complement VA's national cemetery 
     system by assisting states in providing burial plots for 
     veterans in areas where existing national cemeteries cannot 
     satisfy veterans' burial needs. State officials have 
     indicated to VA that they consider future maintenance costs 
     when deciding whether to pursue a state cemetery grant. To 
     the extent that the amendment would help defray those 
     maintenance costs and encourage states to establish veterans' 
     cemeteries, it would make the benefit of burial in such a 
     cemetery an accessible option for more veterans.
       This amendment would allow states to receive plot allowance 
     payments for approximately 1,200 additional interments 
     annually. The costs associated with the enactment of this 
     provision would be $360,000 for fiscal year (FY) 2003 and 
     $3.6 million for the ten-year period from FY 2003 through FY 
     2012.


           LEASE OF LAND AND BUILDINGS; RETENTION OF PROCEEDS

       Section 3(a) of the bill would authorize the Secretary of 
     Veterans Affairs to lease undeveloped acreage and unused and 
     underutilized buildings of the National Cemetery System and 
     to retain the proceeds from leases or agricultural licenses.
       Land is the primary asset entrusted to the National 
     Cemetery Administration (NCA), which currently maintains 
     approximately 14,650 acres. Land dedicated for burial 
     purposes is developed in ten-year increments using a ``just-
     in-time'' approach that carefully monitors depletion of 
     gravesites, projected burial requirements and estimated 
     timing for new construction activities. Additionally, certain 
     sections of many national cemeteries are unsuitable for 
     development into burial sections due to the presence of 
     wetlands, rock outcroppings or sloped terrain. Acreage that 
     is unsuitable for burial purposes and land not yet needed for 
     development represents a significant underutilized asset.
       Amending existing law to authorize NCA to enter into lease 
     agreements would provide NCA with more flexibility in finding 
     current uses for land that otherwise would remain idle until 
     it was needed for development. It also would permit buildings 
     that are currently not in use to be leased and by so doing, 
     to be maintained by the lessee. This authority is similar to 
     the lease authority given to the Veterans Health 
     Administration (VHA).
       NCA already has authority to execute limited-term 
     agricultural licenses and has done so at certain national 
     cemeteries. The license permits grazing, sod farming or 
     planting rotational crops on unused acreage. These activities 
     directly benefit the cemetery by keeping the land cleared, 
     attractive and well maintained. However, receipts for the use 
     of this land must be deposited with the U.S. Treasury. 
     Additionally, NCA has historic lodges and other buildings 
     that could generate revenue for the cemetery if NCA were able 
     to retain the proceeds from leases.
       The receipts retained by NCA would assist in maintaining 
     national cemeteries. The money would be deposited in the 
     National Cemetery Administration account to be used for 
     grounds maintenance, e.g., mowing, trimming, and fertilizing, 
     as well as building maintenance. The additional funds will 
     help to maintain national cemeteries as shrines dedicated to 
     our Nation's history, nurturing patriotism and honoring the 
     service and sacrifice veterans have made on behalf of the 
     United States.
       We estimate that section 3 of the bill would generate 
     annual proceeds of approximately $100,000.


            TIME LIMITATION ON RECEIPT OF CLAIM INFORMATION

       Section 4(a) and (b) of the draft bill would make a 
     technical correction to the statutory provisions created by 
     the Veterans Claims Assistance Act of 2000 (VCAA), Pub. L. 
     No. 106-475, 114 Stat. 2096. Section 4(c) would make that 
     correction effective as if enacted immediately after the 
     VCAA.

                               Prior Law

       Before the enactment of the VCAA, 38 U.S.C. Sec. 5103(a) 
     required VA, if a claimant's application for benefits was 
     incomplete, to notify the claimant of the evidence necessary 
     to complete the application. Section 5103(a) further 
     provided: ``If such evidence is not received within one year 
     from the date of such notification, no benefits may be paid 
     or furnished by reason of such application.''
       In accordance with former section 5103(a), VA regulations 
     provide that, if evidence requested in connection with a 
     claim is not furnished within one year after the date of 
     request, the claim will be considered abandoned. After the 
     expiration of one year, VA will take no further action unless 
     it receives a new claim. Furthermore, should the right to 
     benefits be finally established, benefits based on such 
     evidence would commence no earlier than the date the new 
     claim was filed. 38 C.F.R. Sec. 3.158(a).
       Before the enactment of the VCAA, title 38, United States 
     Code, contained no provision requiring VA to notify a 
     claimant of the evidence necessary to substantiate a claim.

                              Current Law

       Section 3(a) of the VCAA struck former 38 U.S.C. 
     Sec. Sec. 5102 and 5103 and added new sections 5102 and 5103. 
     114 Stat. at 2096-97. Now section 5102(b) requires VA, if a 
     claimant's application for a benefit is incomplete, to notify 
     the claimant (and his or her representative, if any) of the 
     information necessary to complete the application. Section 
     5102 contains no provision concerning a time limitation for 
     the submission of information necessary to complete an 
     application.
       Now section 5103(a) requires VA, upon receipt of a complete 
     or substantially complete application for benefits, to notify 
     the claimant (and his or her representative, if any) of any 
     information and evidence not previously provided to VA that 
     is necessary to substantiate the claim. Furthermore, that 
     notice must indicate which portion of that information and 
     evidence, if any, is to be provided by the claimant and which 
     portion, if any, VA will attempt to obtain on the claimant's 
     behalf. Section 5103(b)(1) provides, in the case of 
     information or evidence that the claimant is notified is to 
     be provided by him or her, if VA does not receive such 
     information or evidence within one year from the date of such 
     notification, no benefit may be paid or furnished by reason 
     of the claimant's application.

                              Implications

       As a result of the amendments made by the VCAA, the 
     statutory provision imposing a one-year limitation now 
     relates to the substantiation of claims rather than to the 
     completion of applications. We do not believe Congress 
     intended this change from prior law. This change raises 
     several potential problems.
       Without a statutory limitation of one year to complete an 
     application, VA no longer has a statutory basis for closing 
     an application as abandoned. Thus, if a claimant were to 
     submit an incomplete application for benefits, but not 
     respond to VA's notice of the information necessary to 
     complete it until many years later, the award of any benefit 
     granted on the basis of that application would have to be 
     effective from the date of the application, even though the 
     claimant took no action to complete it for many years. 
     Further, it appears that VA would be unauthorized to close or 
     deny the claim based on the claimant's failure to respond. We 
     do not believe Congress intended this result. Rather, we 
     believe that the former one-year statutory limitation on the 
     time available to complete an application should be restored.
       The statutory limitation of one year to substantiate a 
     claim also raises potential problems. One such problem is the 
     possibility that courts will interpret the provision to 
     preclude VA from deciding a claim until one year has expired 
     from the date VA gives notice of the information and evidence 
     necessary to substantiate the claim. Exactly that 
     interpretation has been offered by several veterans' service 
     organizations challenging VA's regulations implementing the 
     VCAA. Under those regulations, as part of VA's notice under 
     section 5103(a), VA will request the claimant to provide any 
     evidence in the claimant's possession that pertains to the 
     claim. We ask for the evidence within 30 days, but tell the 
     claimant that one year is available to respond. If the 
     claimant has not responded to the request within 30 days, VA 
     may decide the claim before expiration of the one year, based 
     on all the information and evidence contained in the file, 
     including information and evidence it has obtained on the 
     claimant's behalf. However, VA will have to readjudicate the 
     claim if the claimant subsequently provides the information 
     and evidence within one year of the date of the request. 38 
     C.F.R. Sec. 3.159(b)(1).

[[Page S4496]]

       VA issued those rules ``to allow for the timely processing 
     of claims.'' 66 Fed. Reg. 17,834, 17,835 (2001). Once an 
     application had been substantially completed, VA does not 
     want to have to wait one year to decide the claim, given the 
     large backlog of claims awaiting adjudication by VA and the 
     Secretary's commitment to reducing the backlog and shortening 
     the time VA takes to adjudicate claims. What VA considers to 
     be Congress' inadvertent moving of the one-year limitation 
     from the provision relating to completion of applications 
     to the provision relating to the substantiation of claims 
     could impede VA's efforts to improve service to veterans. 
     VA doubts that Congress intended to require VA, after 
     requesting evidence from a claimant, to keep the claim 
     open and pending for a full year if the claimant has not 
     yet responded.
       Furthermore, section 5103(b)(1)'s clear and unambiguous 
     language appears to prohibit the payment of benefits even 
     though VA could allow a claim. For example, VA might be able 
     to allow a claim on the basis of evidence VA obtained on the 
     claimant's behalf, even though the claimant has not provided 
     the evidence requested of him or her. Or VA might find clear 
     and unmistakable error in a prior denial and need to grant 
     benefits on the claim that was erroneously denied. Yet 
     section 5103(b)(1) prohibits the payment or furnishing of any 
     benefit if VA does not receive within one year the 
     information or evidence the claimant is to provide according 
     to VA's notice. Surely, Congress did not intend such a 
     result.
       Finally, some of VA's pro-veteran regulations will have to 
     be changed unless the one-year time limitation is removed 
     from section 5103. For example, 38 C.F.R. Sec. 20.1304(a) 
     permits an appellant to submit additional evidence during the 
     90 days following notice that an appeal has been certified to 
     the Board of Veterans' Appeals and the appellate record has 
     been transferred to the Board. That 90-day period may extend 
     beyond the one-year period following notice of the 
     information and evidence necessary to substantiate the claim 
     given under section 5103(a), in which case it would conflict 
     with the statutory mandate that ``no benefit may be paid or 
     furnished by reason of the claimant's application'' if VA 
     does not receive the evidence within one year from the date 
     of the section 5103(a) notice. Another potentially 
     conflicting regulation is 38 C.F.R. Sec. 3.156(b), which 
     deems new and material evidence received before expiration of 
     the one-year appeal period (beginning when notice of the 
     decision on a claim is sent) or before an appellate decision 
     is made if a timely appeal is filed to have been filed in 
     connection with the claim pending at the beginning of the 
     appeal period. Because the one-year appeal period necessarily 
     extends beyond the one-year substantiation period, the 
     regulation authorizes the grant of benefits based on evidence 
     not timely received under section 5103(b), contrary to the 
     statutory mandate.
       Accordingly, we propose a technical amendment to sections 
     5102 and 5103 that would prevent these problems. Our draft 
     bill would restore the one-year limitation to section 5102 
     and remove it from section 5103. It would make these 
     technical amendments effective as if enacted immediately 
     after the VCAA.


             LIMITATION ON OBLIGATIONS FOR ADVANCE PLANNING

       Section 5 of the bill would eliminate the limitation on 
     certain obligations for advance planning.
       Section 8104(f) of title 38, United States Code, currently 
     provides that the Secretary may not obligate funds on an 
     amount in excess of $500,000 from the Advance Planning Fund 
     of the Department until the Secretary submits to the 
     committees of Congress a report on the proposed obligation, 
     and a period of 30 days has passed after the date the 
     committees have received the report.
       The reporting requirement was established to ensure that 
     the VA committees were knowledgeable of VA project 
     development activities. At present, these committees 
     participate in the authorization process and, as a result, 
     are knowledgeable of the projects that have already been 
     authorized by Congress. However, because the reporting 
     requirement still applies to projects that have already been 
     authorized by Congress, the Secretary is precluded from 
     funding these projects until after a report is submitted to 
     the committees and the 30-day period has passed. The current 
     limitation places a two to three month delay on those 
     projects that have already been authorized by Congress.
       The proposed legislation would eliminate the limitation 
     only for those projects that have already been authorized by 
     Congress in accordance with 38 U.S.C. Sec. 8104(2). 
     Consequently, the elimination of this limitation would remove 
     the duplication of effort on the part of VA and Congress.
       The Office of Management and Budget has advised that there 
     is no objection to the submission of this legislative 
     proposal to the Congress.
           Sincerely yours,
                                              Anthony J. Principi.
       Enclosure.

                      Section-by-Section Analysis


       DRAFT BILL: ``VETERANS' PROGRAMS AMENDMENTS ACT OF 2002''

   Section 1. Short Title; References to Title 38, United States Code

       Section 1(a) would state the short title to the Act: the 
     Veterans' Programs Amendments Act of 2002. Section 1(b) would 
     provide that all amendments made by the Act, unless otherwise 
     specified, are to a section or other provision of title 38, 
     United States Code.

                    Section 2. Burial Plot Allowance

       Section 2(a) would amend 38 U.S.C. 2303(b) to authorize 
     payment of the burial plot allowance to states for each 
     veteran interred in a state veterans' cemetery at no cost to 
     the veteran's estate or survivors. Currently, section 
     2303(b)(1) authorizes VA to pay a state a $300 plot or 
     interment allowance for each eligible veteran buried in a 
     qualifying state veterans' cemetery. Such allowance is 
     authorized only if the veteran: (1) was a veteran of any war; 
     (2) was discharged from active service for a service-
     connected disability; (3) was receiving VA compensation or 
     pension at the time of death; or (4) died in a VA facility. 
     The proposed amendment would expand this authority to permit 
     payment of the plot allowance to states for burial in state 
     veterans' cemeteries of all eligible peacetime veterans.
       Section 2(b) would make the amendments made by subsection 
     (a) applicable to burial of persons dying on or after the 
     date of the Act's enactment.

     Section 3. Lease of Land and Buildings; Retention of Proceeds

       Section 3(a) would add to Chapter 24 of title 38, United 
     States Code, new section 2412. Section 2412(a) would 
     authorize the Secretary of Veterans Affairs to lease, for a 
     term not to exceed 3 years, undeveloped land and unused or 
     underutilized buildings, or parts or parcels thereof, of the 
     National Cemetery System. This authority would mirror the 
     Secretary's authority in section 8122 of title 38, to lease 
     land or buildings at a VA medical facility. A lease made to a 
     public or nonprofit organization can be made without regard 
     to the advertising requirements of section 5 of title 41, 
     United States Code, and it can provide for the public or 
     nonprofit to maintain, protect or restore the property in 
     lieu of monetary consideration. Section 2421(b) would 
     authorize the proceeds generated by the lease or the proceeds 
     received from an agricultural license to be deposited to the 
     National Cemetery Administration account to assist 
     cemetery operations and maintenance of cemetery property.
       Section 3(b) would add to the table of contents at the 
     beginning of chapter 24 a new item to reflect the addition of 
     section 2412.

Section 4. Time Limitation on Receipt of Claim Information Pursuant to 
               Request by Department of Veterans Affairs

       Section 4(a) and (b) would remove a time limitation from 38 
     U.S.C. Sec. 5103 and restore it to 38 U.S.C. Sec. 5102. The 
     provision, currently in section 5103(b), prohibits VA from 
     paying or furnishing any benefit by reason of an application 
     if VA has not received certain information and evidence 
     within one year of notifying the claimant that the 
     information and evidence is necessary to substantiate the 
     claim and that the claimant is to provide them. If moved to 
     section 5102, the provision would prohibit VA from paying or 
     furnishing any benefit by reason of an application if VA has 
     not received certain information within one year of notifying 
     the claimant that the information is necessary to complete 
     the application.
       Section 4(c) would make the amendments made by subsections 
     (a) and (b) effective as if enacted on November 9, 2000, 
     immediately after the enactment of the Veterans Claims 
     Assistance Act of 2000, Pub. L. No. 106-475, 114 Stat. 2096.

   Section 5. Modification of Limitation on Obligations for Advanced 
                                Planning

       Section 5 would add to the end of section 8104 of title 38, 
     United States Code, a new subsection (g) eliminating a 
     limitation on the obligation of funds from the Advance 
     Planning Fund for certain projects. At present, 38 U.S.C. 
     Sec. 8104(f) provides that the Secretary may not obligate 
     funds on an amount in excess of $500,000 from the Advanced 
     Planning Fund of the Department until the Secretary submits 
     to the committees of Congress a report on the proposed 
     obligation and a period of 30 days has passed after the date 
     the committees have received the report. The reporting 
     requirement applies to projects that have already been 
     authorized by Congress, and the Secretary is therefore 
     precluded from funding these projects until after a report is 
     submitted to the Committees and the 30-day period has passed. 
     The current limitation places a two to three month delay on 
     those projects that have already been authorized by Congress. 
     Elimination of this limitation, as contemplated by section 5, 
     would remove duplication of effort on the part of VA and 
     Congress for those projects that have been authorized in 
     accordance with title 38 U.S.C. Sec. 8104.
                                 ______
                                 
      By Mr. AKAKA (for himself and Mr. Cochran):
  S. 2527. A bill to provide for health benefits coverage under chapter 
89 of title 5, United States Code, for individuals enrolled in a plan 
administered by the Overseas Private Investment Corporation, and for 
other purposes; to the Committee on Governmental Affairs.
  Mr. AKAKA. Mr. President, I rise today to introduce legislation to 
provide health care coverage under the Federal Employees Health 
Benefits

[[Page S4497]]

Program, FEHBP, to individuals enrolled in a health care plan 
administered by the Overseas Private Investment Corporation, OPIC. I am 
pleased to be joined by my good friend Senator Cochran in this 
endeavor.
  In the 1980s, a number of Federal banking-related agencies--including 
OPIC, the Office of Comptroller of the Currency, the Office of Thrift 
Supervision, and the Farm Credit Administration--established separate 
health insurance plans outside the FEHBP. The agencies were able to 
offer enhanced benefits at significantly lower costs because of the 
demographics of their workforce. However, increasing health care costs, 
an aging workforce, and an overall reduction in the Federal workforce 
has made it economically impractical for these agencies to maintain 
their separate programs. As a result, all of these agencies, except 
OPIC, discontinued their separate programs through legislation and 
transferred their employees to the FEHBP. Legislative action is needed 
because current law requires that Federal employees participate in a 
FEHBP plan for the 5 years prior to retirement in order to retain 
coverage after retirement.
  OPIC established its separate program in 1982 and discontinued 
offering the plan to new employees on January 1, 1995. There are 21 
retirees and 18 near-retirees who would be affected by the change. Due 
to the large costs involved in covering retirees in the FEHBP, OPIC 
would be required to pay the employees health benefits fund for the 
benefits provided by this legislation. OPIC has agreed to pay this 
amount from its existing appropriated resources. It is estimated that 
OPIC will save approximately $300,000 per year in premiums when the 
transfer occurs.
  I ask my colleagues to support this legislation and for 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. 2527

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

     SECTION 1. CONTINUATION OF HEALTH BENEFITS COVERAGE FOR 
                   INDIVIDUALS ENROLLED IN A PLAN ADMINISTERED BY 
                   THE OVERSEAS PRIVATE INVESTMENT CORPORATION.

       (a) Enrollment in Chapter 89 Plan.--For purposes of the 
     administration of chapter 89 of title 5, United States Code, 
     any period of enrollment under a health benefits plan 
     administered by the Overseas Private Investment Corporation 
     before the effective date of this Act shall be deemed to be a 
     period of enrollment in a health benefits plan under chapter 
     89 of such title.
       (b) Continued Coverage.--
       (1) In general.--Any individual who, on June 30, 2002, is 
     covered by a health benefits plan administered by the 
     Overseas Private Investment Corporation may enroll in an 
     approved health benefits plan described under section 8903 or 
     8903a of title 5, United States Code--
       (A) either as an individual or for self and family, if such 
     individual is an employee, annuitant, or former spouse as 
     defined under section 8901 of such title; and
       (B) for coverage effective on and after June 30, 2002.
       (2) Individuals currently under continued coverage.--An 
     individual who, on June 30, 2002, is entitled to continued 
     coverage under a health benefits plan administered by the 
     Overseas Private Investment Corporation--
       (A) shall be deemed to be entitled to continued coverage 
     under section 8905a of title 5, United States Code, for the 
     same period that would have been permitted under the plan 
     administered by the Overseas Private Investment Corporation; 
     and
       (B) may enroll in an approved health benefits plan 
     described under section 8903 or 8903a of such title in 
     accordance with section 8905a of such title for coverage 
     effective on and after June 30, 2002.
       (3) Unmarried dependent children.--An individual who, on 
     June 30, 2002, is covered as an unmarried dependent child 
     under a health benefits plan administered by the Overseas 
     Private Investment Corporation and who is not a member of 
     family as defined under section 8901(5) of title 5, United 
     States Code--
       (A) shall be deemed to be entitled to continued coverage 
     under section 8905a of such title as though the individual 
     had, on June 30, 2002, ceased to meet the requirements for 
     being considered an unmarried dependent child under chapter 
     89 of such title; and
       (B) may enroll in an approved health benefits plan 
     described under section 8903 or 8903a of such title in 
     accordance with section 8905a for continued coverage 
     effective on and after June 30, 2002.
       (c) Transfers to the Employees Health Benefits Fund.--
       (1) In general.--The Overseas Private Investment 
     Corporation shall transfer to the Employees Health Benefits 
     Fund established under section 8909 of title 5, United States 
     Code, amounts determined by the Director of the Office of 
     Personnel Management, after consultation with the Overseas 
     Private Investment Corporation, to be necessary to reimburse 
     the Fund for the cost of providing benefits under this 
     section not otherwise paid for by the individuals covered by 
     this section.
       (2) Availability of funds.--The amounts transferred under 
     paragraph (1) shall be held in the Fund and used by the 
     Office in addition to amounts available under section 
     8906(g)(1) of title 5, United States Code.
       (d) Administration and Regulations.--The Office of 
     Personnel Management--
       (1) shall administer this section to provide for--
       (A) a period of notice and open enrollment for individuals 
     affected by this section; and
       (B) no lapse of health coverage for individuals who enroll 
     in a health benefits plan under chapter 89 of title 5, United 
     States Code, in accordance with this section; and
       (2) may prescribe regulations to implement this section.
                                 ______
                                 
      By Mr. DOMENICI (for himself, Mr. Baucus, Mr. Hagel, Ms. Snowe, 
        Mr. Kyl, Mr. Smith of Oregon, Mr. Smith of New Hampshire, Mr. 
        Graham, Mr. Burns, Mr. Bingaman, Mr. Campbell, Mr. Wyden, and 
        Mr. Allard):
  S. 2528. A bill to establish a National Drought Council within the 
Federal Emergency Management Agency, to improve national drought 
preparedness, mitigation, and response efforts, and for other purposes; 
to the Committee on Environment and Public Works.
  Mr. DOMENICI. Mr. President, I rise today to introduce the National 
Drought Preparedness Act of 2002. Severe droughts are not solely the 
curse of the Southwest. Lately, it has been apparent that every region 
in the United States can be hit by drought. We have certainly 
experienced our share of drought in the Southwest, but we have also 
seen the phenomenon occur in the Pacific Northwest, California, the 
Great Basin States, and this year in Maryland, Virginia, Pennsylvania, 
and Delaware. According to the recent Drought Monitor, a joint 
production of the National Drought Mitigation Center, USDA, NOAA, and 
the Climate Prediction Center, nearly a third of the United States is 
currently in a moderate to extreme drought.
  Currently, the State of New Mexico and much of the Rocky Mountain 
States are near or below 50 percent of normal based on low snow pack. 
Along the east coast, precipitation in many places is 8-20 inches below 
normal over the last year.
  Drought is a unique emergency situation; it creeps in unlike other 
abrupt weather disasters. Without a national drought policy we 
constantly live not knowing what the next year will bring. If we find 
ourselves facing a drought, towns could be scrambling to drill new 
water wells, fire could sweep across bone dry forests and farmers, and 
ranchers could be forced to watch their way of life blow away with the 
dust. We must be vigilant and prepare ourselves for quick action when 
the next drought cycle begins. Better planning on our part could limit 
some of the damage felt by drought. I propose that this bill is the 
exact tool needed for facilitating better planning.
  The impacts of drought are also very costly. According to NOAA, there 
have been 12 different drought events since 1980 that resulted in 
damages and costs exceeding $1 billion each. In 2000, severe drought in 
the South-Central and Southeastern States caused losses to agriculture 
and related industries of over $4 billion. Western wildfires that year 
totaled over $2 billion in damages. The Eastern drought in 1999 led to 
$1 billion in losses. These are just a few of the statistics.
  While drought affects the economic and environmental well-being of 
the entire Nation, the United States has lacked a cohesive strategy for 
dealing with serious drought emergencies. As many of you know, the 
impact of drought emerges gradually rather than suddenly as is the case 
with other natural disasters.
  In 1996, every part of New Mexico suffered from severe drought. As a 
result, I convened a special Multi-State Drought Task Force of Federal, 
State, local, and tribal emergency management agencies to coordinate 
efforts to respond to drought. The task force was headed up by the 
Federal Emergency Management Agency, and included

[[Page S4498]]

every Federal agency that has programs designed to deal with drought. 
The task force found that although the Federal Government has many 
drought-related programs on the books, the real problem is that there 
is no integrated, coordinated system of implementing those programs.
  With the recommendations from the Western Governors' Association, the 
National Governors' Association, and the Multi-State Drought Task 
Force, I introduced the National Drought Policy Act of 1997. This piece 
of legislation, which was signed into law, was the first step toward 
establishing a coherent, effective national drought policy. The 
legislation created a commission comprised of representatives of those 
Federal, State, local, and tribal agencies and organizations most 
involved in drought issues. The bill further charged the commission 
with providing recommendations on a permanent and systematic federal 
process to address this particular type of devastating natural 
disaster.
  The commission included representatives from USDA, Interior, the 
Army, FEMA, SBA and Commerce--all agencies with current drought-related 
programs. The commission also included non-Federal members such as 
representatives from the National Governors' Association, the U.S. 
Conference of Mayors, and four persons representing those groups that 
are always hardest hit by drought emergencies.
  The commission was charged with determining what needs existed on the 
Federal, State, local, and tribal levels with regard to drought; 
reviewing existing drought programs; and determining what gaps exist 
between the needs of drought victims and those programs currently 
designed to deal with drought. Finally, the commission was charged with 
making recommendations on how Federal drought laws and programs could 
be better integrated into a comprehensive national drought policy.
  Ultimately, the commission concluded that ``we must adopt a forward-
looking stance to reduce this nation's vulnerability to the impacts of 
drought. Preparedness--including drought planning, plan implementation, 
proactive mitigation, risk management, resource stewardship, 
consideration of environmental concerns, and public education--must 
become the cornerstone of national drought policy.'' The guiding 
principles of drought policy should be one, favoring preparedness over 
insurance, insurance over relief, and incentives over regulation; two, 
setting research priorities based on the potential of the research 
results to reduce drought impacts; and three, coordinating the delivery 
of Federal services through cooperation and collaboration with non-
Federal entities.
  I am pleased to be following through on what I started in 1997. The 
bill that I am introducing today is the next step in implementing a 
national, cohesive drought policy. The bill recognizes that drought is 
a recurring phenomenon that causes serious economic and environmental 
loss and that a national drought policy is needed to ensure an 
integrated, coordinated strategy.
  The National Drought Preparedness Act of 2002 does the following: It 
creates national policy for drought. This will hopefully move the 
country away from the costly, ad-hoc, response-oriented approach to 
drought, and move us toward a pro-active, preparedness approach. The 
new national policy would provide the tools and focus, similar to the 
Stafford Act, for Federal, State, tribal and local governments to 
address the diverse impacts and costs caused by drought.
  The bill would improve delivery of Federal drought programs. This 
would ensure improved program delivery, integration, and leadership. To 
achieve this intended purpose, the bill establishes the National 
Drought Council, designating USDA as the lead Federal agency. The 
council and USDA would provide the coordinating and integrating 
function for Federal drought programs, much like FEMA provides that 
function for other natural disasters under the Stafford Act.
  The act will provide new tools for drought preparedness planning. 
Building on existing policy and planning processes, the bill would 
assist States, local governments, tribes, and other entities in the 
development and implementation of drought preparedness plans. The bill 
does not mandate State and local planning, but is intended to 
facilitate plan development and implementation through establishment of 
the drought assistance fund.
  The bill would improve forecasting and monitoring by facilitating the 
development of the National Drought Monitoring Network in order to 
improve the characterization of current drought conditions and the 
forecasting of future droughts. Ultimately, this would provide a better 
basis to trigger Federal drought assistance.
  Finally, the bill would authorize FEMA to provide reimbursement to 
States for reasonable staging and pre-positioning costs when there is a 
threat of a wildfire.
  Mr. President I ask unanimous consent that 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. 2528

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Drought Preparedness Act of 2002''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Effect of Act.

                     TITLE I--DROUGHT PREPAREDNESS

                  Subtitle A--National Drought Council

Sec. 101. Membership and voting.
Sec. 102. Duties of the Council.
Sec. 103. Powers of the Council.
Sec. 104. Council personnel matters.
Sec. 105. Authorization of appropriations.
Sec. 106. Termination of Council.

          Subtitle B--National Office of Drought Preparedness

Sec. 111. Establishment.
Sec. 112. Director of the Office.
Sec. 113. Detail of government employees.

                 Subtitle C--Drought Preparedness Plans

Sec. 121. Drought Assistance Fund.
Sec. 122. Drought preparedness plans.
Sec. 123. Federal plans.
Sec. 124. State and tribal plans.
Sec. 125. Regional and local plans.
Sec. 126. Plan elements.

                     TITLE II--WILDFIRE SUPPRESSION

Sec. 201. Grants for prepositioning wildfire suppression resources.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) regional drought disasters in the United States cause 
     serious economic and environmental losses, yet there is no 
     national policy to ensure an integrated and coordinated 
     Federal strategy to prepare for, mitigate, or respond to such 
     losses;
       (2) State, tribal, and local governments have to coordinate 
     efforts with each Federal agency involved in drought 
     monitoring, planning, mitigation, and response;
       (3) effective drought monitoring--
       (A) is a critical component of drought preparedness and 
     mitigation; and
       (B) requires a comprehensive, integrated national program 
     that is capable of providing reliable, accessible, and timely 
     information to persons involved in drought planning, 
     mitigation, and response activities;
       (4) the National Drought Policy Commission was established 
     in 1998 to provide advice and recommendations on the creation 
     of an integrated, coordinated Federal policy designed to 
     prepare for and respond to serious drought emergencies;
       (5) according to the report issued by the National Drought 
     Policy Commission in May 2000, the guiding principles of 
     national drought policy should be--
       (A) to favor preparedness over insurance, insurance over 
     relief, and incentives over regulation;
       (B) to establish research priorities based on the potential 
     of the research to reduce drought impacts;
       (C) to coordinate the delivery of Federal services through 
     collaboration with State and local governments and other non-
     Federal entities; and
       (D) to improve collaboration among scientists and managers; 
     and
       (6) the National Drought Council, in coordination with 
     Federal agencies and State, tribal, and local governments, 
     should provide the necessary direction, coordination, 
     guidance, and assistance in developing a comprehensive 
     drought preparedness system.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Council.--The term ``Council'' means the National 
     Drought Council established by section 101(a).
       (2) Critical service provider.--The term ``critical service 
     provider'' means an entity that provides power, water 
     (including water provided by an irrigation organization or 
     facility), sewer services, or wastewater treatment.
       (3) Director.--The term ``Director'' means the Director of 
     the Federal Emergency Management Agency.

[[Page S4499]]

       (4) Director of the office.--The term ``Director of the 
     Office'' means the Director of the Office appointed under 
     section 112(a).
       (5) Drought.--The term ``drought'' means a major natural 
     disaster that is caused by a deficiency in precipitation--
       (A) that may lead to a deficiency in surface and subsurface 
     water supplies (including rivers, streams, wetlands, ground 
     water, soil moisture, reservoir supplies, lake levels, and 
     snow pack); and
       (B) that causes or may cause--
       (i) substantial economic or social impacts; or
       (ii) physical damage or injury to individuals, property, or 
     the environment.
       (6) Fund.--The term ``Fund'' means the Drought Assistance 
     Fund established by section 121(a).
       (7) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (8) Mitigation.--The term ``mitigation'' means a short- or 
     long-term action, program, or policy that is implemented in 
     advance of or during a drought to minimize any risks and 
     impacts of drought.
       (9) National drought monitoring network.--The term 
     ``National Drought Monitoring Network'' means a comprehensive 
     network that collects and integrates information on the key 
     indicators of drought, including stream flow, ground water 
     levels, reservoir levels, soil moisture, snow pack, climate 
     (including precipitation and temperature), and forecasts, in 
     order to make usable, reliable, and timely assessments of 
     drought, including the severity of drought.
       (10) Neighboring country.--The term ``neighboring country'' 
     means Canada and Mexico.
       (11) Office.--The term ``Office'' means the National Office 
     of Drought Preparedness established under section 111.
       (12) Trigger.--The term ``trigger'' means the thresholds or 
     criteria that must be satisfied before mitigation or 
     emergency assistance may be provided to an area--
       (A) in which drought is emerging; or
       (B) that is experiencing a drought.

     SEC. 4. EFFECT OF ACT.

       This Act does not affect--
       (1) the authority of a State to allocate quantities of 
     water under the jurisdiction of the State; or
       (2) any State water rights established as of the date of 
     enactment of this Act.

                     TITLE I--DROUGHT PREPAREDNESS

                  Subtitle A--National Drought Council

     SEC. 101. MEMBERSHIP AND VOTING.

       (a) In General.--There is established a council to be known 
     as the ``National Drought Council''.
       (b) Membership.--
       (1) Composition.--The Council shall be composed of--
       (A) the Director;
       (B) the Secretary of the Interior;
       (C) the Secretary of the Army;
       (D) the Secretary of Agriculture;
       (E) 4 members appointed by the Federal co-chair appointed 
     under subsection (f), in coordination with the National 
     Governors Association, of whom--
       (i) 1 member shall be the Governor of a State from Federal 
     Emergency Management Agency Region I, II, or III;
       (ii) 1 member shall be the Governor of a State from Federal 
     Emergency Management Agency Region IV or VI;
       (iii) 1 member shall be the Governor of a State from 
     Federal Emergency Management Agency Region V or VII; and
       (iv) 1 member shall be the Governor of a State from Federal 
     Emergency Management Agency Region VIII, IX, or X;
       (F) 1 member appointed by the Federal co-chair, in 
     coordination with the National Association of Counties;
       (G) 1 member appointed by the Federal co-chair, in 
     coordination with the United States Conference of Mayors;
       (H) 1 member appointed by the Secretary of the Interior, in 
     coordination with Indian tribes, to represent the interests 
     of tribal governments; and
       (I) 1 member appointed by the Secretary of Agriculture, in 
     coordination with the National Association of Conservation 
     Districts, to represent local soil and water conservation 
     districts.
       (2) Date of appointment.--The appointment of each member of 
     the Council shall be made not later than 120 days after the 
     date of enactment of this Act.
       (c) Term; Vacancies.--
       (1) Term.--A member of the Council shall be appointed for a 
     term of 2 years.
       (2) Vacancies.--A vacancy on the Council--
       (A) shall not affect the powers of the Council; and
       (B) shall be filled in the same manner as the original 
     appointment was made.
       (d) Meetings.--
       (1) In general.--The Council shall meet at the call of the 
     co-chairs.
       (2) Frequency.--The Council shall meet at least 
     semiannually.
       (e) Quorum.--A majority of the members of the Council shall 
     constitute a quorum, but a lesser number may hold hearings or 
     conduct other business.
       (f) Co-Chairs.--
       (1) In general.--There shall be a Federal co-chair and non-
     Federal co-chair of the Council.
       (2) Appointment.--
       (A) Federal co-chair.--The Director shall be Federal co-
     chair.
       (B) Non-federal co-chair.--The Council members appointed 
     under subparagraphs (E) through (I) of subsection (b)(1) 
     shall select a non-Federal co-chair from among the members 
     appointed under those subparagraphs.
       (g) Director of the Office.--
       (1) In general.--The Director of the Office shall serve as 
     Director of the Council.
       (2) Duties.--The Director of the Office shall serve the 
     interests of all members of the Council.

     SEC. 102. DUTIES OF THE COUNCIL.

       (a) In General.--The Council shall--
       (1) not later than 1 year after the date of the first 
     meeting of the Council, develop a comprehensive National 
     Drought Policy Action Plan that--
       (A)(i) delineates and integrates responsibilities for 
     activities relating to drought (including drought 
     preparedness, mitigation, research, risk management, 
     training, and emergency relief) among Federal agencies; and
       (ii) ensures that those activities are coordinated with the 
     activities of the States, local governments, Indian tribes, 
     and neighboring countries;
       (B) is consistent with--
       (i) this Act and other applicable Federal laws; and
       (ii) the laws and policies of the States for water 
     management;
       (C) is integrated with drought management programs of the 
     States, Indian tribes, local governments, and private 
     entities; and
       (D) avoids duplicating Federal, State, tribal, local, and 
     private drought preparedness and monitoring programs in 
     existence on the date of enactment of this Act;
       (2) evaluate Federal drought-related programs in existence 
     on the date of enactment of this Act and make recommendations 
     to Congress and the President on means of eliminating--
       (A) discrepancies between the goals of the programs and 
     actual service delivery;
       (B) duplication among programs; and
       (C) any other circumstances that interfere with the 
     effective operation of the programs;
       (3) make recommendations to the President, Congress, and 
     appropriate Federal Agencies on--
       (A) the establishment of common interagency triggers for 
     authorizing Federal drought mitigation programs; and
       (B) improving the consistency and fairness of assistance 
     among Federal drought relief programs;
       (4) coordinate and prioritize specific activities that will 
     improve the National Drought Monitoring Network by--
       (A) taking into consideration the limited resources for--
       (i) drought monitoring, prediction, and research 
     activities; and
       (ii) water supply forecasting; and
       (B) providing for the development of an effective drought 
     information delivery system that--
       (i) communicates drought conditions and impacts to--

       (I) decisionmakers at the Federal, regional, State, tribal, 
     and local levels of government;
       (II) the private sector; and
       (III) the public; and

       (ii) includes near-real-time data, information, and 
     products developed at the Federal, regional, State, tribal, 
     and local levels of government that reflect regional and 
     State differences in drought conditions;
       (5) encourage and facilitate the development of drought 
     preparedness plans under subtitle C, including establishing 
     the guidelines under sections 121(c) and 122(a);
       (6) based on a review of drought preparedness plans, 
     develop and make available to the public drought planning 
     models to reduce water resource conflicts relating to water 
     conservation and droughts;
       (7) develop and coordinate public awareness activities to 
     provide the public with access to understandable, and 
     informative materials on drought, including--
       (A) explanations of the causes of drought, the impacts of 
     drought, and the damages from drought;
       (B) descriptions of the value and benefits of land 
     stewardship to reduce the impacts of drought and to protect 
     the environment;
       (C) clear instructions for appropriate responses to 
     drought, including water conservation, water reuse, and 
     detection and elimination of water leaks; and
       (D) information on State and local laws applicable to 
     drought; and
       (8) establish operating procedures for the Council.
       (b) Consultation.--In carrying out this section, the 
     Council shall consult with groups affected by drought 
     emergencies, including groups that represent--
       (1) agricultural production, wildlife, and fishery 
     interests;
       (2) forestry and fire management interests;
       (3) the credit community;
       (4) rural and urban water associations;
       (5) environmental interests;
       (6) engineering and construction interests; and
       (7) the portion of the science community that is concerned 
     with drought and climatology.
       (c) Reports to Congress.--
       (1) Annual report.--
       (A) In general.--Not later than 1 year after the date of 
     the first meeting of the Council, and annually thereafter, 
     the Council shall submit to Congress a report on the 
     activities carried out under this title.
       (B) Inclusions.--

[[Page S4500]]

       (i) In general.--The annual report shall include a summary 
     of drought preparedness plans completed under sections 123 
     through 125.
       (ii) Initial report.--The initial report submitted under 
     subparagraph (A) shall include any recommendations of the 
     Council under paragraph (2) or (3) of subsection (a).
       (2) Final report.--Not later than 7 years after the date of 
     enactment of this Act, the Council shall submit to Congress a 
     report that recommends--
       (A) amendments to this Act; and
       (B) whether the Council should continue.

     SEC. 103. POWERS OF THE COUNCIL.

       (a) Hearings.--The Council may hold hearings, meet and act 
     at any time and place, take any testimony and receive any 
     evidence that the Council considers advisable to carry out 
     this title.
       (b) Information From Federal Agencies.--
       (1) In general.--The Council may obtain directly from any 
     Federal agency any information that the Council considers 
     necessary to carry out this title.
       (2) Provision of information.--
       (A) In general.--Except as provided in subparagraph (B), on 
     request of the Federal co-chair or non-Federal co-chair, the 
     head of a Federal agency may provide information to the 
     Council.
       (B) Limitation.--The head of a Federal agency shall not 
     provide any information to the Council that the Federal 
     agency head determines the disclosure of which may cause harm 
     to national security interests.
       (c) Postal Services.--The Council may use the United States 
     mail in the same manner and under the same conditions as 
     other agencies of the Federal Government.
       (d) Gifts.--The Council may accept, use, and dispose of 
     gifts or donations of services or property.
       (e) Federal Facilities.--If the Council proposes the use of 
     a Federal facility for the purposes of carrying out this 
     title, the Council shall solicit and consider the input of 
     the Federal agency with jurisdiction over the facility.

     SEC. 104. COUNCIL PERSONNEL MATTERS.

       (a) Compensation of Members.--
       (1) Non-federal employees.--A member of the Council who is 
     not an officer or employee of the Federal Government shall 
     serve without compensation.
       (2) Federal employees.--A member of the Council who is an 
     officer or employee of the United States shall serve without 
     compensation in addition to the compensation received for 
     services of the member as an officer or employee of the 
     Federal Government.
       (b) Travel Expenses.--A member of the Council shall be 
     allowed travel expenses at rates authorized for an employee 
     of an agency under subchapter I of chapter 57 of title 5, 
     United States Code, while away from the home or regular place 
     of business of the member in the performance of the duties of 
     the Council.

     SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     title $2,000,000 for each of fiscal years 2003 through 2010.

     SEC. 106. TERMINATION OF COUNCIL.

       The Council shall terminate 8 years after the date of 
     enactment of this Act.

          Subtitle B--National Office of Drought Preparedness

     SEC. 111. ESTABLISHMENT.

       The Director shall establish directly under the Director an 
     office to be known as the ``National Office of Drought 
     Preparedness'' to provide assistance to the Council in 
     carrying out this title.

     SEC. 112. DIRECTOR OF THE OFFICE.

       (a) Appointment.--
       (1) In general.--The Director shall appoint a Director of 
     the Office under sections 3371 through 3375 of title 5, 
     United States Code.
       (2) Qualifications.--The Director of the Office shall be a 
     person who has experience in--
       (A) public administration; and
       (B) drought mitigation or drought management.
       (b) Powers.--The Director of the Office may hire such other 
     additional personnel or contract for services with other 
     entities as necessary to carry out the duties of the Office.

     SEC. 113. DETAIL OF GOVERNMENT EMPLOYEES.

       (a) In General.--An employee of the Federal Government may 
     be detailed to the Office without reimbursement, unless the 
     Federal co-chair, on the recommendation of the Director of 
     the Office, determines that reimbursement is appropriate.
       (b) Civil Service Status.--The detail of an employee shall 
     be without interruption or loss of civil service status or 
     privilege.

                 Subtitle C--Drought Preparedness Plans

     SEC. 121. DROUGHT ASSISTANCE FUND.

       (a) Establishment.--There is established within the Federal 
     Emergency Management Agency a fund to be known as the 
     ``Drought Assistance Fund''.
       (b) Purpose.--The Fund shall be used to pay the costs of--
       (1) providing technical and financial assistance (including 
     grants and cooperative assistance) to States, Indian tribes, 
     local governments, and critical service providers for the 
     development and implementation of drought preparedness plans 
     under sections 123 through 125;
       (2) providing to States, Indian tribes, local governments, 
     and critical service providers the Federal share, as 
     determined by the Federal co-chair, in consultation with the 
     other members of the Council, of the cost of mitigating the 
     overall risk and impacts of droughts;
       (3) assisting States, Indian tribes, local governments, and 
     critical service providers in the development of mitigation 
     measures to address environmental, economic, and human health 
     and safety issues relating to drought;
       (4) expanding the technology transfer of drought and water 
     conservation strategies and innovative water supply 
     techniques;
       (5) developing post-drought evaluations and 
     recommendations; and
       (6) supplementing, if necessary, the costs of implementing 
     actions under section 102(a)(4).
       (c) Guidelines.--
       (1) In general.--The Federal co-chair of the Council shall, 
     in consultation with other members of the Council, promulgate 
     guidelines implementing this section.
       (2) Requirements.--The guidelines shall--
       (A) ensure the distribution of amounts from the Fund within 
     a reasonable period of time;
       (B) take into consideration regional differences; and
       (C) prohibit the use of amounts from the Fund for Federal 
     salaries that are not directly related to the provision of 
     drought assistance.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Fund such sums as are necessary to 
     carry out the purposes described in subsection (b).

     SEC. 122. DROUGHT PREPAREDNESS PLANS.

       (a) In General.--The Director, in consultation with the 
     Council, shall publish guidelines for administering a 
     national program to provide technical and financial 
     assistance to States, Indian tribes, local governments, and 
     critical service providers for the development, maintenance, 
     and implementation of drought preparedness plans.
       (b) Requirements.--To build on the experience and avoid 
     duplication of efforts of Federal, State, local, tribal, and 
     regional drought plans in existence on the date of enactment 
     of this Act, the guidelines may recognize and incorporate 
     those plans.

     SEC. 123. FEDERAL PLANS.

       (a) In General.--The Director, the Secretary of 
     Agriculture, the Secretary of the Interior, the Secretary of 
     the Army, and other appropriate Federal agency heads shall 
     develop and implement Federal drought preparedness plans for 
     agencies under the jurisdiction of the appropriate Federal 
     agency head.
       (b) Requirements.--The Federal plans--
       (1) shall be integrated with each other;
       (2) may be included as components of other Federal planning 
     requirements;
       (3) shall be integrated with drought preparedness plans of 
     State, tribal, and local governments that are affected by 
     Federal projects and programs; and
       (4) shall be completed not later than 2 years after the 
     date of enactment of this Act.

     SEC. 124. STATE AND TRIBAL PLANS.

       States and Indian tribes may develop and implement State 
     and tribal drought preparedness plans that--
       (1) address monitoring of resource conditions that are 
     related to drought;
       (2) identify areas that are at a high risk for drought;
       (3) describes mitigation strategies to address and reduce 
     the vulnerability of an area to drought; and
       (4) are integrated with State, tribal, and local water 
     plans in existence on the date of enactment of this Act.

     SEC. 125. REGIONAL AND LOCAL PLANS.

       Local governments and regional water providers may develop 
     and implement drought preparedness plans that--
       (1) address monitoring of resource conditions that are 
     related to drought;
       (2) identify areas that are at a high risk for drought;
       (3) describe mitigation strategies to address and reduce 
     the vulnerability of an area to drought; and
       (4) are integrated with corresponding State plans.

     SEC. 126. PLAN ELEMENTS.

       The drought preparedness plans developed under sections 123 
     through 125--
       (1) shall be consistent with Federal and State laws, 
     contracts, and policies;
       (2) shall allow each State to continue to manage water and 
     wildlife in the State;
       (3) shall address the health, safety, and economic 
     interests of those persons directly affected by drought;
       (4) may include--
       (A) provisions for water management strategies to be used 
     during various drought or water shortage thresholds, 
     consistent with State water law;
       (B) provisions to address key issues relating to drought 
     (including public health, safety, economic factors, and 
     environmental issues such as water quality, water quantity, 
     protection of threatened and endangered species, and fire 
     management);
       (C) provisions that allow for public participation in the 
     development, adoption, and implementation of drought plans;
       (D) provisions for periodic drought exercises, revisions, 
     and updates;
       (E) a hydrologic characterization study to determine how 
     water is being used during times of normal water supply 
     availability to anticipate the types of drought mitigation 
     actions that would most effectively improve water management 
     during a drought;

[[Page S4501]]

       (F) drought triggers;
       (G) specific implementation actions for droughts;
       (H) a water shortage allocation plan, consistent with State 
     water law; and
       (I) comprehensive insurance and financial strategies to 
     manage the risks and financial impacts of droughts; and
       (5) shall take into consideration--
       (A) the financial impact of the plan on the ability of the 
     utilities to ensure rate stability and revenue stream; and
       (B) economic impacts from water shortages.

                     TITLE II--WILDFIRE SUPPRESSION

     SEC. 201. GRANTS FOR PREPOSITIONING WILDFIRE SUPPRESSION 
                   RESOURCES.

       Title II of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5131 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 205. GRANTS FOR PREPOSITIONING WILDFIRE SUPPRESSION 
                   RESOURCES.

       ``(a) Findings and Purpose.--
       ``(1) Findings.--Congress finds that--
       ``(A) droughts increase the risk of catastrophic wildfires 
     that--
       ``(i) drastically alter and otherwise adversely affect the 
     landscape for communities and the environment;
       ``(ii) because of the potential of such wildfires to 
     overwhelm State wildfire suppression resources, require a 
     coordinated response among States, Federal agencies, and 
     neighboring countries; and
       ``(iii) result in billions of dollars in losses each year;
       ``(B) the Federal Government must, to the maximum extent 
     practicable, prevent and suppress such catastrophic wildfires 
     to protect human life and property;
       ``(C) not taking into account State, local, and private 
     wildfire suppression costs, during the period of 1996 through 
     2000, the Federal Government expended over $630,000,000 per 
     year for wildfire suppression costs;
       ``(D) it is more cost-effective to prevent wildfires by 
     prepositioning wildfire fighting resources to catch flare-ups 
     than to commit millions of dollars to respond to large 
     uncontrollable fires; and
       ``(E) it is in the best interest of the United States to 
     invest in catastrophic wildfire prevention and mitigation by 
     easing the financial burden of prepositioning wildfire 
     suppression resources.
       ``(2) Purpose.--The purpose of this section is to encourage 
     the mitigation and prevention of wildfires by providing 
     financial assistance to States for prepositioning of wildfire 
     suppression resources.
       ``(b) Authorization.--The Director of the Federal Emergency 
     Management Agency (referred to in this section as the 
     `Director') may reimburse a State for the cost of 
     prepositioning wildfire suppression resources on potential 
     multiple and large fire complexes when the Director 
     determines, in accordance with national and regional severity 
     indices of the Forest Service, that a wildfire event poses a 
     threat to life and property in the area.
       ``(c) Eligibility.--Wildfire suppression resources of the 
     Federal Government, neighboring countries, and any State 
     other than the State requesting assistance are eligible for 
     reimbursement under this section.
       ``(d) Reimbursement.--
       ``(1) In general.--The Director may reimburse a State for 
     the costs of prepositioning of wildfire suppression resources 
     of the entities specified in subsection (c), including 
     mobilization to, and demobilization from, the staging or 
     prepositioning area.
       ``(2) Requirements.--For a State to receive reimbursement 
     under paragraph (1)--
       ``(A) any resource provided by an entity specified in 
     subsection (c) shall have been specifically requested by the 
     State seeking reimbursement; and
       ``(B) staging or prepositioning costs--
       ``(i) shall be expended during the approved prepositioning 
     period; and
       ``(ii) shall be reasonable.''.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Thomas, Mr. Murkowski, Mr. 
        Torricelli, Mr. Harkin, Mrs. Clinton, and Mr. Johnson):
  S. 2529. A bill to amend title XVIII of the Social Security Act to 
improve the medicare incentive payment program; to the Committee on 
Finance.
  Mr. BINGAMAN. Mr. President, the legislation I am introducing today 
with Senators Thomas, Murkowski, Torricelli, Harkin, Clinton, and 
Johnson entitled ``The Medicare Incentive Payment Program Improvement 
Act of 2002'' is designed to improve the flow of needed bonus payments 
to physicians serving Medicare patients in health professions shortage 
areas, HPSA.
  In my own State the flight of physicians from underserved areas has 
affected both primary care and specialty services alike. In many areas 
the shortages of specialists exceeds that of primary care physicians. 
The New Mexico Health Policy Commission reported in its year 2000 
report that 22 percent of residents in Los Alamos and Santa Fe were 
unable to receive needed specialist care.
  With only 170 physicians per 100,000 people, New Mexico ranks well 
behind the national average with regard to primary care and specialist 
physicians. The physician shortage problem is further compounded by the 
disproportionate decline in physicians from rural and underserved 
areas.
  New Mexico, like many States, has a growing proportion of its rural 
population becoming older and sicker. According to the latest census, 
over 20 million of our citizens live in physician shortage areas.
  Lack of adequate reimbursement, in the face of increasing costs, is a 
critical factor leading to the shortage of physician services in HPSAs. 
Physicians flee rural and shortage areas for many reasons including 
inadequate reimbursement, family hardships and quality-of-life issues. 
Although it is beyond our scope to address all these issues, we can fix 
the reimbursement component.
  The Medicare Incentive Payment Program, MIPP, created by the Omnibus 
Budget Reconciliation Act of 1987, was meant to assist physicians in 
defraying the higher costs and burdens of serving Medicare patients in 
shortage areas. These 10 percent ``bonuses'' are an essential component 
in our ongoing effort to ensure Medicare beneficiaries access to 
medical services.
  Unfortunately the Medicare Incentive Payment Program has fared 
poorly, with few providers choosing to receive the payments. In fact, 
the total annual physician payments have never exceeded $100 million 
because of a series of disincentives in the legislation.
  The program requires a provider to do a number of things to obtain 
the bonus payments. First, providers must be aware that NIPP payments 
are available to them. Many providers are unaware of the program's 
existence. Next, physicians must find out if the patient's medical care 
occurred in a shortage area. Following this a unique code must be 
attached to the Medicare claim, which is then forwarded to the carrier. 
Finally, after all these steps, providers are subjected to automatic 
Medicare audits, just for accepting these payments.
  Providers committed to serving Medicare patients in underserved areas 
deserve the support assured by the original legislation's intent.
  The Medicare Incentive Payment Improvement Act of 2002 addresses and 
improves shortcomings in the original legislation by: placing the 
burden for determining the bonus eligibility on the Medicare carrier; 
eliminating automatic provider audits; directing the Center for 
Medicare and Medicaid Services to establish a Medicare incentive 
payment program educational program for providers; establishing an 
ongoing analysis of the programs' ability to improve Medicare 
beneficiaries access to physician services; continue to provide the 
original 10 percent add-on bonus for Part B physician payments in 
health provider shortage areas.
  Medicare carriers are the logical arbiters to determine whether 
physician services occurred in a shortage area. Physicians, already 
overworked, lack sufficient time, resources, and training to research 
and determine whether a service was provided in a HPSA. By placing the 
responsibility on carriers, with their sophisticated information 
systems, the physician's administrative burdens will be reduced.
  The automatic audits triggered by this program, costly, time 
intensive, and unwarranted, will be lifted under our legislation. By 
placing the responsibility on carriers to determine payment eligibility 
the need for provider audits is eliminated.
  While the MIPP program is intended to improve beneficiaries' access 
to physician services, there is no measure of the program's effect on 
physician availability. The legislation offered today directs CMS, to 
perform, as ongoing analysis, whether these payments actually do 
improve beneficiaries access to physician services.
  I believe these improvements, in addition to others listed above, 
will greatly improve patient's access to care.
  The following organizations have expressed their support for this 
legislation: American College of Physicians/American Society of 
Internal Medicine, the American Academy of Family Physicians and the 
American Geriatrics Society.
  Mr. President, I ask unanimous consent that a fact sheet, letters of 
support, and the text of the bill be printed in the Record.

[[Page S4502]]

  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2529

       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 ``Medicare Incentive Payment 
     Program Improvement Act of 2002''.

     SEC. 2. PROCEDURES FOR SECRETARY, AND NOT PHYSICIANS, TO 
                   DETERMINE WHEN BONUS PAYMENTS UNDER MEDICARE 
                   INCENTIVE PAYMENT PROGRAM SHOULD BE MADE.

       Section 1833(m) of the Social Security Act (42 U.S.C. 
     1395l(m)) is amended--
       (1) by inserting ``(1)'' after ``(m)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary shall establish procedures under which 
     the Secretary, and not the physician furnishing the service, 
     is responsible for determining when a payment is required to 
     be made under paragraph (1).''.

     SEC. 3. EDUCATIONAL PROGRAM REGARDING THE MEDICARE INCENTIVE 
                   PAYMENT PROGRAM.

       The Secretary of Health and Human Services shall establish 
     and implement an ongoing educational program to provide 
     education to physicians under the medicare program on the 
     medicare incentive payment program under section 1833(m) of 
     the Social Security Act (42 U.S.C. 1395l(m)).

     SEC. 4. ONGOING STUDY AND ANNUAL REPORT ON THE MEDICARE 
                   INCENTIVE PAYMENT PROGRAM.

       (a) Ongoing Study.--The Secretary of Health and Human 
     Services shall conduct an ongoing study on the medicare 
     incentive payment program under section 1833(m) of the Social 
     Security Act (42 U.S.C. 1395l(m)). Such study shall focus on 
     whether such program increases the access of medicare 
     beneficiaries who reside in an area that is designated (under 
     section 332(a)(1)(A) of the Public Health Service Act (42 
     U.S.C. 254e(a)(1)(A))) as a health professional shortage area 
     to physicians' services under the medicare program.
       (b) Annual Reports.--Not later than 1 year after the date 
     of enactment of this Act, and annually thereafter, the 
     Secretary of Health and Human Services shall submit to 
     Congress a report on the study conducted under subsection 
     (a), together with recommendations for such legislation and 
     administrative actions as the Secretary considers 
     appropriate.
                                  ____


 The Medicare Incentive Payment Program Improvement Act of 2002--Fact 
                                 Sheet

       The proposed legislation by Sen. Jeff Bingaman (D-NM) will 
     improve the flow of needed bonus payments to physicians 
     serving Medicare beneficiaries in Health Professions Shortage 
     Areas (HPSA's). These providers care for patients under 
     difficult circumstances without the financial or 
     infrastructure resources of their colleagues practicing in 
     non-shortage areas.
       The Act streamlines the flow of a 10% bonus payment for all 
     part-B physicians services provided in geographic HPSA's. In 
     addition, the legislation further improves the existing 
     Medicare Incentive Payment Program by reducing the 
     administrative burden to providers and providing an 
     educational program.
       The Medicare Incentive Payment Program was initially 
     created and later modified under the Omnibus Budget 
     Reconciliation Acts of 1987 and 1989. The program has fared 
     poorly with little uptake by providers. Total payments fell 
     following the 1997 Balanced Budget Amendment with total 
     payments of $100 million in 1996 and $90 million in 1997.
       The present program requires a provider to have knowledge 
     of and perform a number of items in order to obtain the 
     payment.
       Have knowledge the program exists. Many providers are 
     unaware of the bonuses.
       Determine if the patient encounter took place in a 
     geographic HPSA.
       Attach the proper modifier to the claim.
       Undergo a stringent audit process by the intermediary. This 
     risk alone deters many providers from participation.
       The MIP program although sound in concept has proven 
     difficult to execute. In order for the programs initial goals 
     to be fully realized it must be utilized, i.e., payment to 
     providers serving Medicare beneficiary's in geographic HPSA's
       The Medicare Incentive Program Improvment Act of 2002 will:
       Continue to provide the 10% add on bonus to all Part-B 
     payments in Geographic HPSA's.
       Place the responsibility for determining bonus eligibility 
     on the Medicare carrier.
       Eliminate the audit burden.
       Call for the Center for Medicare and Medicaid Services to 
     establish a MIP Educational Program for providers.
       Establish an ongoing analysis of the programs ability to 
     improve Medicare's patient's access to physician services.
                                  ____



                                                     ACP-ASIM,

                                                   April 17, 2002.
     Hon. Jeff Bingaman,
     U.S. Senate,
     Washington, DC.
       Dear Senator Bingaman: On behalf of the American College of 
     Physicians-American Society of Internal Medicine (ACP-ASIM), 
     we wish to extend our support for your draft Medicare 
     Incentive Payment (MIP) Program legislation. ACP-ASIM--
     represents 115,000 physicians and medical students--is the 
     largest medical specialty society and second largest 
     physician organization in the United States. Internists 
     provide care to more Medicare patients than any other 
     physician specialty.
       The MIP Program provides a 10 percent bonus payment to 
     physicians serving Medicare patients in geographic Health 
     Professions Shortage Areas (HPSA). We support provisions in 
     your proposal that seeks to improve the existing MIP Program 
     by placing the burden for determining the bonus eligibility 
     on the Medicare carrier, and not the individual physician. In 
     addition, we support provisions in the proposal that require 
     the Center for Medicare and Medicaid Services (CMS) to 
     establish a MIP educational program for providers, and also 
     establish initiatives that provide an analysis of the 
     programs ability to improve Medicare beneficiary's access to 
     physician services. We hope these initiatives will provide 
     needed incentives to recruit and retain physicians into 
     shortage areas.
       While we support the draft MIP legislation, we are 
     concerned that unless Congress fixes the overall physician 
     payment update formula within the Medicare program, a 10 
     percent bonus of a declining payment will not solve the 
     problem of physicians providing services to patients in HPSA. 
     Therefore, we hope you will continue to be supportive of a 
     legislative solution to replace the seriously flawed formula 
     in current law for updating the Medicare physician fee 
     schedule, and base annual updates on changes in physicians' 
     input prices as has been recommended by the Medicare Payment 
     Advisory Commission in its March 1 Report to Congress. If 
     left in place, the current update methodology, tied to the 
     performance of the overall economy, will lower Medicare 
     payments for physician services by 28.1 percent in real terms 
     by 2005.
       Thank you again, Senator Bingaman for your continued 
     leadership to the present and future viability of the 
     Medicare program.
           Sincerely,
                                                   Sara E. Walker,
     President.
                                  ____



                              The American Geriatrics Society,

                                                     May 16, 2002.
     The Hon. Jeff Bingaman,
     United States Senate, Washington, DC.
       Dear Senator Bingaman: The American Geriatrics Society 
     (AGS), an organization of over 6,000 geriatricians and other 
     health care professionals who are specially trained in the 
     management of care for frail, chronically ill older patients, 
     extends our support for your draft Medicare Incentive Payment 
     (MIP) Program legislation.
       The MIP Program provides a 10 percent bonus payment to 
     physicians serving Medicare patients in Geographic Health 
     Professions Shortage Areas (HPSA). We support provisions in 
     your proposal that seek to improve the existing MIP by 
     placing the burden for determining the bonus eligibility on 
     the Medicare carrier, and not the individual physician. 
     Finally, we support provision that would improve our ability 
     to provide Medicare beneficiary access to physician services 
     under the MIP Program.
       We look forward to working with you on this and other 
     important Medicare initiatives during this Congress. If you 
     should have comments or questions on this letter, please 
     contact Susan Emmer in our Washington office at 301-320-3873.
           Sincerely,
                                        Kenneth Brummel-Smith, MD,
     President.
                                  ____

                                               American Academy of


                                            Family Physicians,

                                                     May 16, 2002.
     Hon. Jeff Bingaman,
     U.S. Senate,
     Washington, DC.
       Dear Senator Bingaman: The American Academy of Family 
     Physicians and its 93,500 members nationwide commend you for 
     introducing the ``Medicare Incentive Payment Program 
     Improvement Act of 2002.'' This bill would make any physician 
     practicing in a Health Professional Shortage Area (HPSA) 
     eligible for a ten-percent bonus. The bill would also charge 
     the Secretary of Health and Human Services to conduct an 
     ongoing program to provide education to physicians on the 
     Medicare Incentive Payment (MIP) program. The Secretary would 
     also be directed to conduct an ongoing study of the MIP 
     program, which shall focus on whether such a program 
     increases the access to physicians' services for those 
     Medicare beneficiaries who reside in a HPSA.
       Created in 1989, the MIP program provides bonus payments to 
     physicians who practice in HPSAs in an effort to entice more 
     physicians to those areas. According to a Medicare Payment 
     Advisory Commission (MedPAC) report dated June 2001, a recent 
     decline in the bonus payments to physicians has caused 
     concern that several aspects of the program design are 
     compromising its effectivess.
       For example, currently the MIP ten-percent bonus is paid to 
     physicians practicing in HPSAs only upon submission of the 
     claim form with a special coding modifier attached to each 
     service identified. Since the bonus payment is predicated 
     upon the use of this special coding modifier, and since, due 
     to the inherent instability of the HPSA designation, 
     physicians cannot always be certain if they are practicing in 
     a shortage area, the use of the MIP has been less than 
     expected.

[[Page S4503]]

       In 1996, 75 percent of participating rural physicians, or 
     about 18,700 doctors, received less than $1,520 each in bonus 
     payments for the year. In addition to the complexities 
     described above, the low level of payments may be 
     attributable to carriers being required to review claims of 
     physicians who receive the largest bonus payments. A 1999 
     study by the Health Care Financing Administration (HCFA) 
     suggested this policy may discourage physicians from applying 
     for the MIP program. More importantly, a 1999 General 
     Accounting Office (GAO) report suggested the ten-percent 
     bonus payments may be insufficient to have a significant 
     influence on recruitment or retention of primary care 
     physicians.
       The American Academy of Family Physicians urges Congress to 
     pass the ``Medicare Incentive Payment Program Improvement Act 
     of 2002,'' which would make any physician practicing in a 
     HPSA automatically eligible for the ten-percent bonus without 
     having to engage in any special billing or coding processes 
     or submitting to a higher level of claims review. Such action 
     will ensure that rural Medicare patients can continue to 
     receive the care they depend on and deserve. Please let us 
     know how we can assist in the effort to gain support for this 
     important legislation.
           Sincerely,
                                               Richard G. Roberts,
                                                      Board Chair.

  Mr. THOMAS. Mr. President, I am pleased to rise today to introduce 
the Medicare Incentive Payment Program Improvement Act of 2002 with my 
distinguished colleague Senator Bingaman. This legislation makes 
important improvements to the current Medicare Incentive Payment, MIP 
Program. These refinements will go a long way in ensuring eligible 
rural physicians receive the Medicare bonus payment to which they are 
entitled.
  The Medicare Incentive Payment Program was created in 1987 under the 
Omnibus Budget Reconciliation Act to serve as an incentive tool to 
recruit physicians to practice in Health Professional Shortage Areas, 
HPSAs, by providing a 10-percent Medicare bonus payment. There are 
approximately 2,800 federally designated HPSAs--75 percent of which are 
located in rural areas. In my State of Wyoming, over half of the 
counties are designated as a health professional shortage area and have 
a difficult time recruiting physicians.
  Unfortunately, this well-intended program has not worked well due to 
the burden it places on providers. Under the current MIP programmatic 
structure, physicians are required to determine if the patient 
encounter occurred in a designated underserved areas, they must attach 
a code modifier to the billing claim and must undergo a stringent 
audit. Additionally, there is evidence that many physicians who would 
be eligible are not even aware of the program.
  Therefore, the legislation we are introducing today alleviates the 
administrative burden on rural physicians by requiring Medicare 
carriers to determine eligibility. The Medicare Incentive Payment 
Program Improvement Act of 2002 also requires the Centers for Medicare 
and Medicaid Services to establish a MIP education program for 
providers and establishes ongoing analysis of the MIP Program's ability 
to improve access to physician services for Medicare beneficiaries.
  All physicians are currently struggling with the recent Medicare 
payment reduction of 5.4 percent in addition to the ever-increasing 
regulatory burden of participating in the Medicare Program. As rural 
providers tend to be disproportionately impacted by Medicare payment 
cuts, it has never been more important to ensure that the few rural 
physician incentive programs that exist have a positive effect on the 
stability of our rural health care delivery system. I strongly urge all 
my Senate colleagues interested in rural health to cosponsor the 
Medicare Incentive Payment Program Improvement Act of 2002.

                          ____________________