[Congressional Record Volume 148, Number 68 (Thursday, May 23, 2002)]
[Senate]
[Pages S4841-S4873]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SMITH of New Hampshire (for himself, Mr. Miller, Mr. 
        Murkowski, Mr. Burns, Mr. Bunning, and Mr. Thurmond):
  S. 2554. A bill to amend title 49, United States Code, to establish a 
program for Federal flight deck officers, and for other purposes; to 
the Committee on Commerce, Science, and Transportation.
  Mr. SMITH of New Hampshire. Mr. President, I'd like to talk about an 
issue of vital importance to the people of the United States. Is our 
government doing absolutely everything in its power to prevent another 
occurrence such as the one on September 11, where our own airplanes, 
full of innocent men, women, and children, were hijacked and turned 
into guided missiles, killing thousands? We have taken many steps to 
prevent this from happening again, such as increased security checks 
and reinforcing cockpit doors. But for some reason we hesitate to take 
the additional step of ensuring our aircrews have the ability as well 
to guard against the terrorist threat. Today, I am proud to represent a 
bipartisan coalition including Senator Zell Miller, Senator Conrad 
Burns, Senator Frank Murkowski, Senator Jim Bunning, and Senator Strom 
Thurmond in introducing the Arming Pilots Against Terrorism and Cabin 
Defense Act of 2002.
  Armed pilots are our first line of deterrence and the last line of 
defense to protect an aircraft from terrorist takeover. Trained Flight 
Attendants are an important part of an integrated, layered strategy to 
fight terrorists from the cabin to the cockpit. Flight Attendants need 
more training to defend themselves and the American people from future 
contemplated acts of terrorism.
  This legislation sets up a voluntary program to train and deputize 
pilots in the proper use of a firearm. The bill further repeals the 
authority of the Undersecretary for Transportation Security to block 
armed pilots. The Senate passed legislation as part of the aviation and 
Transportation Security bill to authorize a pilot ``to carry a firearm 
into the cockpit if--(1) the Undersecretary of Transportation for 
Security Approves.'' For some reason, the Undersecretary has not 
approved this measure. It is time to mandate a program to train and arm 
pilots now.
  Section 3 of the bill addresses the concerns of our Nation's Flight 
Attendants. The bill sets up detailed requirements and training which 
will prepare Flight Attendants for potential threat conditions. The 
bill further sets up a new Aviation Crewmember Self-Defense Division at 
the Department of Transportation to aid in the training of Flight 
Attendants.
  The bill mandates the development and fielding of a wireless 
communications device system so the pilots may communicate with flight 
attendants discreetly. Finally, the Transportation Security 
Administration is required to study the issue of less than lethal 
weapons for Flight Attendants.
  The opponents of armed pilots argue that firearms are too dangerous 
to be used in airplanes. Federal Air Marshals are armed with guns and 
they sit in the passenger cabin of commercial airliners. We should not 
prevent the pilots who are separated from the passengers by a 
reinforced cockpit door, and

[[Page S4842]]

again, serve as the last line of defense, from being armed. It is time 
to establish and implement a comprehensive training program, and arm 
pilots immediately after its completion.

  Pilots have told me that a stun guns or a tazer is not the answer. 
Those two tools are a good supplement for a firearm, but they are not a 
replacement. Again, if firearms are good enough for the Federal Air 
Marshals, they are good enough for our Nation's pilots. An Air Force 
fighter jet shooting down a commercial airline full of passengers is a 
scary and unthinkable prospect. Armed pilots are a reasonable 
alternative to an Air Force Pilot shooting down a commercial airliner.
  I disagree with the Undersecretary for Transportation Security that a 
reinforced cockpit door and armed Federal Air Marshals are the final 
answer. I believe that armed pilots and trained Flight Attendants give 
this Nation an integrated system to fight hijackers. Pilots working 
together with Flight Attendants are the best method to thwart the will 
of terrorists. Armed Pilots and trained Flight Attendants need to be 
given the tools to stop those who would use commercial aircraft to 
again attack at the heart of the United States of America.
  Flight Attendants were executed on September 11 by terrorists. Giving 
Flight Attendants the training contained in the bill is the least we 
can do for these brave individuals. Don't forget that Flight Attendants 
were specifically targeted by the terrorists and this bill will help 
flight attendants to have a fighting chance.
  This is an important and necessary tool in the war against 
terrorists. Please support and co-sponsor the Arming Pilots Against 
Terrorism and Cabin Defense Act of 2002.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2554

       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 ``Arming Pilots Against 
     Terrorism and Cabin Defense Act of 2002''.

     SEC. 2. FEDERAL FLIGHT DECK OFFICER PROGRAM.

       (a) In General.--Subchapter I of chapter 449 of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 44921. Federal flight deck officer program

       ``(a) Establishment.--Not later than 90 days after the date 
     of enactment of the Arming Pilots Against Terrorism and Cabin 
     Defense Act of 2002, the Under Secretary of Transportation 
     for Security shall establish a program to deputize qualified 
     pilots of commercial cargo or passenger aircraft who 
     volunteer for the program as Federal law enforcement officers 
     to defend the flight decks of commercial aircraft of air 
     carriers engaged in air transportation or intrastate air 
     transportation against acts of criminal violence or air 
     piracy. Such officers shall be known as `Federal flight deck 
     officers'. The program shall be administered in connection 
     with the Federal air marshal program.
       ``(b) Qualified Pilot.--Under the program described in 
     subsection (a), a qualified pilot is a pilot of an aircraft 
     engaged in air transportation or intrastate air 
     transportation who--
       ``(1) is employed by an air carrier;
       ``(2) has demonstrated fitness to be a Federal flight deck 
     officer in accordance with regulations promulgated pursuant 
     to this title; and
       ``(3) has been the subject of an employment investigation 
     (including a criminal history record check) under section 
     44936(a)(1).
       ``(c) Training, Supervision, and Equipment.--The Under 
     Secretary of Transportation for Security shall provide or 
     make arrangements for training, supervision, and equipment 
     necessary for a qualified pilot to be a Federal flight deck 
     officer under this section at no expense to the pilot or the 
     air carrier employing the pilot. The Under Secretary may 
     approve private training programs which meet the Under 
     Secretary's specifications and guidelines. Air carriers shall 
     make accommodations to facilitate the training of their 
     pilots as Federal flight deck officers and shall facilitate 
     Federal flight deck officers in the conduct of their duties 
     under this program.
       ``(d) Deputization.--
       ``(1) In general.--The Under Secretary of Transportation 
     for Security shall train and deputize, as a Federal flight 
     deck officer under this section, any qualified pilot who 
     submits to the Under Secretary a request to be such an 
     officer.
       ``(2) Initial deputization.--Not later than 120 days after 
     the date of enactment of this section, the Under Secretary 
     shall deputize not fewer than 500 qualified pilots who are 
     former military or law enforcement personnel as Federal 
     flight deck officers under this section.
       ``(3) Full implementation.--Not later than 24 months after 
     the date of enactment of this section, the Under Secretary 
     shall deputize any qualified pilot as a Federal flight deck 
     officer under this section.
       ``(e) Compensation.--Pilots participating in the program 
     under this section shall not be eligible for compensation 
     from the Federal Government for services provided as a 
     Federal flight deck officer.
       ``(f) Authority To Carry Firearms.--The Under Secretary of 
     Transportation for Security shall authorize a Federal flight 
     deck officer under this section to carry a firearm to defend 
     the flight deck of a commercial passenger or cargo aircraft 
     while engaged in providing air transportation or intrastate 
     air transportation. No air carrier may prohibit a Federal 
     flight deck officer from carrying a firearm in accordance 
     with the provisions of the Arming Pilots Against Terrorism 
     and Cabin Defense Act of 2002.
       ``(g) Authority To Use Force.--Notwithstanding section 
     44903(d), a Federal flight deck officer may use force 
     (including lethal force) against an individual in the defense 
     of a commercial aircraft in air transportation or intrastate 
     air transportation if the officer reasonably believes that 
     the security of the aircraft is at risk.
       ``(h) Limitation on Liability.--
       ``(1) Liability of air carriers.--An air carrier shall not 
     be liable for damages in any action brought in a Federal or 
     State court arising out of the air carrier employing a pilot 
     of an aircraft who is a Federal flight deck officer under 
     this section or out of the acts or omissions of the pilot in 
     defending an aircraft of the air carrier against acts of 
     criminal violence or air piracy.
       ``(2) Liability of federal flight deck officers.--A Federal 
     flight deck officer shall not be liable for damages in any 
     action brought in a Federal or State court arising out of the 
     acts or omissions of the officer in defending an aircraft 
     against acts of criminal violence or air piracy unless the 
     officer is guilty of gross negligence or willful misconduct.
       ``(3) Employee status of federal flight deck officers.--A 
     Federal flight deck officer shall be considered an `employee 
     of the Government while acting within the scope of his office 
     or employment' with respect to any act or omission of the 
     officer in defending an aircraft against acts of criminal 
     violence or air piracy, for purposes of sections 1346(b), 
     2401(b), and 2671 through 2680 of title 28 United States 
     Code.
       ``(i) Regulations.--Not later than 90 days after the date 
     of enactment of this section, the Under Secretary of 
     Transportation for Security, in consultation with the 
     Firearms Training Unit of the Federal Bureau of 
     Investigation, shall issue regulations to carry out this 
     section.
       ``(j) Pilot Defined.--In this section, the term `pilot' 
     means an individual who is responsible for the operation of 
     an aircraft, and includes a co-pilot or other member of the 
     flight deck crew.''.
       (b) Conforming Amendments.--
       (1) Chapter analysis.--The analysis for such chapter 449 is 
     amended by inserting after the item relating to section 44920 
     the following new item:

``44921. Federal flight deck officer program.''.

       (2) Employment investigations.--Section 44936(a)(1)(B) is 
     amended--
       (A) by aligning clause (iii) with clause (ii);
       (B) by striking ``and'' at the end of clause (iii);
       (C) by striking the period at the end of clause (iv) and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(v) qualified pilots who are deputized as Federal flight 
     deck officers under section 44921.''.
       (3) Flight deck security.--Section 128 of the Aviation and 
     Transportation Security Act (49 U.S.C. 44903 note) is 
     repealed.

     SEC. 3. CABIN SECURITY.

       (a) Technical Amendments.--Section 44903, of title 49, 
     United States Code, is amended--
       (1) by redesignating subsection (h) (relating to authority 
     to arm flight deck crew with less-than-lethal weapons, as 
     added by section 126(b) of public law 107-71) as subsection 
     (j); and
       (2) by redesignating subsection (h) (relating to limitation 
     on liability for acts to thwart criminal violence or aircraft 
     piracy, as added by section 144 of public law 107-71) as 
     subsection (k).
       (b) Aviation Crewmember Self-Defense Division.--Section 
     44918 of title 49, United States Code, is amended--
       (1) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) In General.--
       ``(1) Requirement for air carriers.--Not later than 60 days 
     after the date of enactment of the Arming Pilots Against 
     Terrorism and Cabin Defense Act of 2002, the Under Secretary 
     of Transportation for Security, shall prescribe detailed 
     requirements for an air carrier cabin crew training program, 
     and for the instructors of that program as described in 
     subsection (b) to prepare crew members for potential threat 
     conditions. In developing the requirements, the Under 
     Secretary shall consult with appropriate law enforcement 
     personnel who have expertise in self-defense training, 
     security experts, and terrorism experts, and representatives 
     of air carriers and labor organizations representing 
     individuals employed in commercial aviation.

[[Page S4843]]

       ``(2) Aviation crewmember self-defense division.--Not later 
     than 60 days after the date of enactment of the Arming Pilots 
     Against Terrorism and Cabin Defense Act of 2002, the Under 
     Secretary of Transportation for Security shall establish an 
     Aviation Crew Self-Defense Division within the Transportation 
     Security Administration. The Division shall develop and 
     administer the implementation of the requirements described 
     in this section. The Under Secretary shall appoint a Director 
     of the Aviation Crew Self-Defense Division who shall be the 
     head of the Division. The Director shall report to the Under 
     Secretary. In the selection of the Director, the Under 
     Secretary shall solicit recommendations from law enforcement, 
     air carriers, and labor organizations representing 
     individuals employed in commercial aviation. The Director 
     shall have a background in self-defense training, including 
     military or law enforcement training with an emphasis in 
     teaching self-defense and the appropriate use force. Regional 
     training supervisors shall be under the control of the 
     Director and shall have appropriate training and experience 
     in teaching self-defense and the appropriate use of force.'';
       (2) by striking subsection (b), and inserting the following 
     new subsection:
       ``(b) Program Elements.--
       ``(1) In general.--The requirements prescribed under 
     subsection (a) shall include, at a minimum, 28 hours of self-
     defense training that incorporates classroom and situational 
     training that contains the following elements:
       ``(A) Determination of the seriousness of any occurrence.
       ``(B) Crew communication and coordination.
       ``(C) Appropriate responses to defend oneself, including a 
     minimum of 16 hours of hands-on training, with reasonable and 
     effective requirements on time allotment over a 4 week 
     period, in the following levels of self-defense:
       ``(i) awareness, deterrence, and avoidance;
       ``(ii) verbalization;
       ``(iii) empty hand control;
       ``(iv) intermediate weapons and self-defense techniques; 
     and
       ``(v) deadly force.
       ``(D) Use of protective devices assigned to crewmembers (to 
     the extent such devices are approved by the Administrator or 
     Under Secretary).
       ``(E) Psychology of terrorists to cope with hijacker 
     behavior and passenger responses.
       ``(F) Live situational simulation joint training exercises 
     regarding various threat conditions, including all of the 
     elements required by this section.
       ``(G) Flight deck procedures or aircraft maneuvers to 
     defend the aircraft.
       ``(2) Program elements for instructors.--The requirements 
     prescribed under subsection (a) shall contain program 
     elements for instructors that include, at a minimum, the 
     following:
       ``(A) A certification program for the instructors who will 
     provide the training described in paragraph (1).
       ``(B) A requirement that no training session shall have 
     fewer than 1 instructor for every 12 students.
       ``(C) A requirement that air carriers provide certain 
     instructor information, including names and qualifications, 
     to the Aviation Crew Member Self-Defense Division within 30 
     days after receiving the requirements described in subsection 
     (a).
       ``(D) Training course curriculum lesson plans and 
     performance objectives to be used by instructors.
       ``(E) Written training bulletins to reinforce course 
     lessons and provide necessary progressive updates to 
     instructors.
       ``(3) Recurrent training.--Each air carrier shall provide 
     the training under the program every 6 months after the 
     completion of the initial training.
       ``(4) Initial training.--Air carriers shall provide the 
     initial training under the program within 24 months of the 
     date of enactment of the Arming Pilots Against Terrorism and 
     Cabin Defense Act of 2002.
       ``(5) Communication devices.--The requirements described in 
     subsection (a) shall include a provision mandating that air 
     carriers provide flight and cabin crew with a discreet, 
     hands-free, wireless method of communicating with the flight 
     deck.''; and
       (3) by adding at the end the following new subsections:
       ``(f) Rulemaking Authority.--Notwithstanding subsection (j) 
     (relating to authority to arm flight deck crew with less 
     than-lethal weapons) of section 44903, of this title, within 
     180 days after the date of enactment of the Arming Pilots 
     Against Terrorism and Cabin Defense Act of 2002, the Under 
     Secretary of Transportation for Security, in consultation 
     with persons described in subsection (a)(1), shall prescribe 
     regulations requiring air carriers to--
       ``(1) provide adequate training in the proper conduct of a 
     cabin search and allow adequate duty time to perform such a 
     search; and
       ``(2) conduct a preflight security briefing with flight 
     deck and cabin crew and, when available, Federal air marshals 
     or other authorized law enforcement officials.
       ``(g) Limitation on Liability.--
       ``(1) Air carriers.--An air carrier shall not be liable for 
     damages in any action brought in a Federal or State court 
     arising out of the acts or omissions of the air carrier's 
     training instructors or cabin crew using reasonable and 
     necessary force in defending an aircraft of the air carrier 
     against acts of criminal violence or air piracy.
       ``(2) Training instructors and cabin crew.--An air 
     carrier's training instructors or cabin crew shall not be 
     liable for damages in any action brought in a Federal or 
     State court arising out of an act or omission of a training 
     instructor or a member of the cabin crew regarding the 
     defense of an aircraft against acts of criminal violence or 
     air piracy unless the crew member is guilty of gross 
     negligence or willful misconduct.''.
       (c) Nonlethal Weapons for Flight Attendants.--
       (1) Study.--The Under Secretary of Transportation for 
     Security shall conduct a study to determine whether 
     possession of a nonlethal weapon by a member of an air 
     carrier's cabin crew would aid the flight deck crew in 
     combating air piracy and criminal violence on commercial 
     airlines.
       (2) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Under Secretary of Transportation 
     for Security shall prepare and submit to Congress a report on 
     the study conducted under paragraph (1).
                                 ______
                                 
      By Mr. BAUCUS:
  S. 2555. A bill to amend title XVIII of the Social Security Act to 
enhance beneficiary access to quality health care services under the 
Medicare Program; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, Congress has its hands full with health 
policy issues this year, ranging from health insurance for workers 
displaced by trade policies, to the Patients' Bill of Rights, to 
Medicare prescription drugs. All of these issues are pressing. But 
Congress must not lose sight of another pressing issue in health 
policy: supporting patients in rural America and the health care 
providers who care for them.
  Under current law, rural areas are confronted with a series of 
inequities in Medicare payment policy. Few of these inequities have any 
basis in sound policy; and all of them take away precious resources 
from rural communities.
  Today, I am introducing legislation to level the rural playing field. 
The Revitalizing Underserved Rural Areas and Localities Act, the RURAL 
Act, would fix many of the inequities that exist under the current 
system and offer extra help to certain providers who struggle to 
operate in a rural, low-volume environment.
  Many of these changes would impact Medicare payments to hospitals. 
First, the bill provides a full inflation update for small urban and 
rural hospitals. Under current law, hospitals are scheduled to receive 
a payment increase that is 0.55 percent less than the rate of inflation 
next year. The RURAL Act would erase that reduction in Fiscal Year 
2003. My bill would also equalize the base payment amount for hospital 
inpatient services. Under current law, the base payment amount, also 
known as the ``standardized amount,'' is lower for rural and small 
urban hospitals than for urban providers. This system unfairly 
penalizes smaller facilities, and I want to change to a single, equal 
rate.
  The RURAL Act would also make gradual changes to the hospital wage 
index, so that the true cost of providing care in rural areas can be 
more accurately measured. And the bill recognizes the special needs of 
providers with low patient volumes, by giving them incremental payment 
increases based on their patient volume.
  My bill also addresses several ambulance issues that I've heard a lot 
about from the rural health care community. It makes clear that when 
providers have a reasonable medical basis for using an air ambulance, 
they should receive proper payment for that service. And it would allow 
hospitals with 25 beds or less to be reimbursed on a cost basis for 
ambulance services.
  The bill contains special provisions for the roughly 600 critical 
access hospitals, or CAHs, nationwide. First, it says that when a 
patient is referred to a CAH for lab services, the hospital is 
reimbursed on a cost basis. It would also modify the emergency room on-
call rules to allow reimbursements to physician assistants, nurse 
practitioners, and clinical nurse specialists. And it would remove 
CAHs' 35-mile requirement for cost-based ambulance reimbursement.
  I also recognize the enormous challenges of delivering home health 
services in rural and frontier areas, where distance and volume 
constantly work against the provider. That's why my

[[Page S4844]]

bill would extend the 10 percent add-on for home health services 
delivered in rural areas for another three years. And for agencies in 
so-called ``frontier'' areas, there would be a 20 percent add-on.
  Finally, my bill includes provisions aimed at helping physicians who 
practice in rural areas. Under the existing system, payments under the 
physician fee schedule are reduced for rural doctors, often 
substantially, by a factor known as the Geographic Practice Cost Index, 
or GPCI. My bill would put a floor on this factor, increasing payments 
to rural physicians. The bill would also improve the Medicare Incentive 
Payment Program, MIPP, an important initiative intended to facilitate 
recruitment and retention of physicians in rural areas. Finally, while 
the sustainable growth rate payment formula is not addressed in this 
legislation, I believe it is critical that Congress act this year to 
mitigate the drastic cuts in payments under the Medicare physician fee 
schedule.
  This bill represents a starting point, a first step towards 
correcting flawed policies that punish rural areas. As the Finance 
Committee considers Medicare legislation in the coming months, I urge 
my colleagues to support these important rural provisions.
                                 ______
                                 
      By Mr. CRAPO (for himself and Mr. Craig):
  S. 2556. A bill to authorize the Secretary of the Interior to convey 
certain facilities to the Fremont-Madison Irrigation District in the 
State of Idaho; to the Committee on Energy and Natural Resources.
  Mr. CRAPO. Mr. President, I rise today to introduce the Fremont-
Madison Conveyance Act. The purpose of this act is to authorize the 
Secretary of the Interior to convey title to certain facilities to the 
Fremont-Madison Irrigation District.
  The District has long operated and maintained these facilities since 
they were constructed and the United States will be fully reimbursed 
for the cost of construction by the time of the transfer. Under this 
title transfer, there is expected to be no change in the operation of 
the facilities. The measure would also require any necessary actions to 
be taken to comply with the National Environmental Policy Act and local 
environmental needs.
  This proposal is consistent with Bureau of Reclamation policy to 
transfer title to facilities to irrigation districts that have long 
operated and maintained those facilities. As you know, Congress has 
authorized similar title transfers in the past and it would be 
appropriate to do so for this district.
                                 ______
                                 
      By Mr. HATCH (for himself, Mr. Graham, Mr. Allard, Mr. Kennedy, 
        and Ms. Mikulski):
  S. 2557. A bill to amend title XVIII of the Social Security Act to 
improve access to Medicare+Choice plans for special needs medicare 
beneficiaries, and for other purposes; to the Committee on Finance.
  Mr. HATCH. Mr. President, I rise today to introduce legislation that 
will help one of the most vulnerable segments of the Medicare 
population; the Medicare Improvements for Special Needs Beneficiaries 
Act of 2002 will improve access to quality health care for frail, 
elderly Medicare beneficiaries living in nursing homes or the 
community.
  Approximately six million of these individuals are eligible for both 
Medicare and Medicaid coverage. These ``dual eligibles,'' as they are 
called, are the most vulnerable group of Medicare beneficiaries. They 
are elderly or disabled and poor, and many have serious health risks 
and complex medical, social, and long-term care needs. Care for these 
beneficiaries is fragmented, and many face barriers to needed services. 
Dual eligibles represent a disproportionate share of Medicare spending.
  A small number of health plans specialized in providing quality 
coordinated care to frail elderly Medicare beneficiaries through 
demonstrations and the Medicare+Choice program. These specialized plans 
are a Medicare+Choice success story, fulfilling the program's original 
goals by employing innovative clinical models of care that improve care 
and health outcomes while reducing medical costs. These plans currently 
serve approximately 25,000 Medicare beneficiaries, most of whom reside 
in nursing homes.
  The model is simple: teams of physicians and nurse practitioners work 
together to provide as much primary, preventive, and acute care as 
possible on site, in a nursing home facility or in the patient's home. 
For institutionalized enrollees, this means fewer trips to the 
emergency room; for community-based enrollees, it means avoiding 
nursing home placement. If enrollees can be treated successfully 
without a trip to the hospital or placement in a nursing home, they 
remain healthier and costs to the Medicare program are reduced.
  These specialized plans are currently facing regulatory barriers that 
prevent them from becoming permanent Medicare+Choice program options 
and expanding service to frail and elderly beneficiaries in the 
community. The Medicare Improvements for Special Needs Beneficaries Act 
of 2002 provides improved beneficiary access to Medicare+Choice plans 
by removing these barriers and allowing plans to specialize in serving 
dual eligible, institutionalized, and other frail beneficiaries.
  Specially, the bill would allow a special Medicare+Choice program 
designation in order to allow these plans to target enrollment to the 
frail elderly and concentrate care on this vulnerable population. As a 
safeguard, our bill also includes several quality assurance and 
reporting requirements which these plans must adhere to in order to 
remain in the program.
  The Congress is continually trying to improve our nation's health 
care system and improve service for Medicare beneficiaries. I believe 
this legislation takes a small step toward this goal. These programs 
are fulfilling the original promise of the Medicare+Choice program to 
improve quality and lower costs, and this legislation is a no-cost way 
to continue this effort. These plans serve a unique and valuable 
purpose for a very vulnerable segment of our society. I hope my 
colleagues will join me in supporting this important legislation.
  Mr. GRAHAM. Mr. President, I rise today to introduce legislation to 
improve the health and healthcare of one of the most fragile groups 
within our Medicare population. The Medicare Improvements for Special 
Needs Beneficiaries Act of 2002 would improve access to quality 
healthcare for frail, elderly Medicare beneficiaries living in nursing 
homes or the community. Approximately 6 million of these individuals 
are eligible for both Medicare and Medicaid coverage, so-called ``dual 
eligibles.''
  These ``dual eligibles'' deserve our greatest attention. They are 
vulnerable financially as well as medically. Typically, these older 
Americans suffer from the chronic health conditions compounded by 
complex social and acute care needs. Further, even with the best of 
intentions, their healthcare delivery is often limited by a health 
system that is fragmented and poorly coordinated. Despite 28 percent of 
Medicare spending going toward their care, the system fails at 
delivering optimal coordinated health services.
  While we have looked for success in our current Medicare+Choice 
plans, we find a system that is in need of serious restructuring and 
development. On the other hand, a small number of health plans already 
specialize in providing the quality coordinated care that this 
vulnerable group needs. These plans are truly a Medicare+Choice success 
story, however, limited through their demonstration status and relative 
small number. They have documented an improvement in care delivery as 
well as health outcomes while actually reducing overall medical costs! 
These plans currently serve 25,000 Medicare beneficiaries, most of whom 
are institutionalized.
  How does this work? Through facilitating the physicians, nurses, and 
other health professionals to work together toward a common goal: 
better quality of life and health. By emphasizing preventive and 
primary care as much as acute and tertiary care, these care-givers look 
as much at getting through a crisis as they do at preventing the next 
adverse health event. This leads to fewer urgent and emergent 
healthcare visits, decreased need for skilled nursing facility 
placements, and shorter and fewer hospitalizations. Anyone who has 
visited an elder in the hospital knows that the cost of this care, 
however great, is small compared

[[Page S4845]]

to the unsettling nature of the event itself. Avoiding both is a win!
  While the improvement in healthcare delivery and costs are important, 
these plans can point to genuine improvements in health and quality of 
life. The quality of life toward the end of the lifespan should be no 
less important than it is when we are younger. Communication and 
involvement of the beneficiary's family, when possible, also leads to 
greater peace of mind and less anxiety for all.
  Evercare, an affiliate of the United Health Group, has participated 
in the demonstration project since 1995. In that time they have 
developed considerable experience and great success. They have reduced 
inpatient hospitalizations, patient mortality and improved clinical 
indicators of quality. All the while, they have also consistently 
achieved a 95% satisfaction rate among family members.
  In this demonstration project, Evercare has increased the vaccination 
rate for pneumonia to \2/3\ from less than half for most nursing home 
residents. Flu vaccine is delivered to 20 percent more patients than in 
the standard care system, and over 90 percent of the residents have had 
documented discussions around their future care, compared with less 
than 40 percent among general nursing home residents.
  The time and effort spent on this demonstration project by Evercare 
and others has given us the necessary information to move forward and 
offer such care to the much larger group of seniors that might benefit. 
However, these plans are continuing to face substantial hurdles to 
becoming permanent M+C options and expanding services to more 
beneficiaries. The Medicare Improvements for Special Needs 
Beneficiaries Act of 2002 provides improved access to these plans by 
removing the barriers and allowing plans to specialize in serving dual 
eligible, institutionalized, and other frail beneficiaries.
  This bill will allow a special ``Medicare+Choice'' program 
designation in order to allow plans to target enrollment to the frail 
elderly and concentrate care on this vulnerable population. The bill 
includes specific quality assurance and reporting requirements to 
ensure that these programs continue their success in improving health 
and healthcare.
  While we seek more and better means of improving service for our 
Medicare beneficiaries, we should not lose sight of some of the small 
success. Leveraging the success of the demonstration group. This piece 
of legislation will enable these programs to grow and mature, without 
additional cost. I hope my colleagues will join me in supporting this 
piece of legislation.
                                 ______
                                 
      By Mr. REED (for himself, Mr. Fitzgerald, Ms. Cantwell, and Mr. 
        DeWine):
  S. 2558. A bill to amend the Public Health Service Act to provide for 
the collection of data on benign brain-related tumors through the 
national program of cancer registries; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. REED. Mr. President, I rise today to introduce the Bengin Brain 
Tumor Cancer Registries Amendment Act. I am pleased to be joined by my 
colleagues, Senators Fitzgerald, Cantwell, and DeWine in this effort.
  This legislation seeks to ensure that all forms of brain tumors are 
accounted for under the National Program of Cancer Registries. While 
the distinction between benign and malignant is often the difference 
between life and death for many kinds of tumors, it is not so clear 
when it comes to tumors of the brain. Depending on location and size, a 
brain tumor that is classified as benign can be equally life 
threatening as a malignant brain tumor.
  It is estimated that benign brain tumors account for almost 40 
percent of the 35,000 brain tumors diagnosed each year. Currently, 21 
States, including my home State of Rhode Island, collect data on 
malignant as well as benign brain tumors. Yet, there is no mechanism in 
place to track the incidence of benign brain tumors at the Federal 
level. Moreover, variation exists in how different states have defined 
a benign brain tumor. This lack of consistent data on the incidence of 
benign brain tumors has hindered the ability of the scientific 
community to invest appropriate resources into brain tumor research.
  While our current data is insufficient, disturbing trends related to 
brain tumors are nevertheless beginning to emerge. Brain tumors are the 
second leading cause of cancer death for children and the third leading 
cause of cancer death in young adults ages 15-34. Since 1975, the 
incidence of brain tumors has increased 25 percent for reasons that 
remain unknown. Tragically, our limited scientific and medical 
understanding of brain tumors is related to their incredibly high 
mortality rates. Only 37 percent of males and 52 percent of females 
survive five-years following the diagnosis of a primary benign or 
malignant brain tumor.
  By incorporating the collection of benign brain tumor data into the 
National Program of Cancer Registries, we will take a crucial first 
step toward better understanding the possible causes of this affliction 
and enhancing the ability of the medical community to devise improved 
methods of diagnosis and treatment for all brain tumors.
  I look forward to working with my colleagues to ensure swift 
consideration and passage of this legislation. I ask unanimous consent 
that the text of my bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2558

       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 ``Benign Brain Tumor Cancer 
     Registries Amendment Act''.

     SEC. 2. NATIONAL PROGRAM OF CANCER REGISTRIES; BENIGN BRAIN-
                   RELATED TUMORS AS ADDITIONAL CATEGORY OF DATA 
                   COLLECTED.

       (a) In General.--Section 399B of the Public Health Service 
     Act (42 U.S.C. 280e), as redesignated by section 502(2)(A) of 
     Public Law 106-310 (114 Stat. 1115), is amended in subsection 
     (a)--
       (1) by redesignating paragraphs (1) through (5) as 
     subparagraphs (A) through (E), respectively and indenting 
     appropriately;
       (2) by striking ``(a) In General.--The Secretary'' and 
     inserting the following:
       ``(a) In General.--
       ``(1) Statewide cancer registries.--The Secretary'';
       (3) in the matter preceding subparagraph (A) (as so 
     redesignated), by striking ``population-based'' and all that 
     follows through ``data'' and inserting the following: 
     ``population-based, statewide registries to collect, for each 
     condition specified in paragraph (2)(A), data''; and
       (4) by adding at the end the following:
       ``(2) Cancer; benign brain-related tumors.--
       ``(A) In general.--For purposes of paragraph (1), the 
     conditions referred to in this paragraph are the following:
       ``(i) Each form of in-situ and invasive cancer (with the 
     exception of basal cell and squamous cell carcinoma of the 
     skin), including malignant brain-related tumors.
       ``(ii) Benign brain-related tumors.
       ``(B) Brain-related tumor.--For purposes of subparagraph 
     (A):
       ``(i) The term `brain-related tumor' means a listed primary 
     tumor (whether malignant or benign) occurring in any of the 
     following sites:

       ``(I) The brain, meninges, spinal cord, cauda equina, a 
     cranial nerve or nerves, or any other part of the central 
     nervous system.
       ``(II) The pituitary gland, pineal gland, or 
     craniopharyngeal duct.

       ``(ii) The term `listed', with respect to a primary tumor, 
     means a primary tumor that is listed in the International 
     Classification of Diseases for Oncology (commonly referred to 
     as the ICD-O).
       ``(iii) The term `International Classification of Diseases 
     for Oncology' means a classification system that includes 
     topography (site) information and histology (cell type 
     information) developed by the World Health Organization, in 
     collaboration with international centers, to promote 
     international comparability in the collection, 
     classification, processing, and presentation of cancer 
     statistics. The ICD-O system is a supplement to the 
     International Statistical Classification of Diseases and 
     Related Health Problems (commonly known as the ICD) and is 
     the standard coding system used by cancer registries 
     worldwide. Such term includes any modification made to such 
     system for purposes of the United States. Such term further 
     includes any published classification system that is 
     internationally recognized as a successor to the 
     classification system referred to in the first sentence of 
     this clause.
       ``(C) Statewide cancer registry.--References in this 
     section to cancer registries shall be considered to be 
     references to registries described in this subsection.''.
       (b) Applicability.--The amendments made by subsection (a) 
     apply to grants under section 399B of the Public Health 
     Service Act

[[Page S4846]]

     for fiscal year 2002 and subsequent fiscal years, except 
     that, in the case of a State that received such a grant for 
     fiscal year 2000, the Secretary of Health and Human Services 
     may delay the applicability of such amendments to the State 
     for not more than 12 months if the Secretary determines that 
     compliance with such amendments requires the enactment of a 
     statute by the State or the issuance of State regulations.
                                 ______
                                 
      By Mr. ALLARD (for himself, Mr. Feingold, Mr. Campbell, Mr. Kohl, 
        and Mr. Craig):
  S. 2560. A bill to provide for a multi-agency cooperative effort to 
encourage further research regarding the causes of chronic wasting 
disease and methods to control the further spread of the disease in 
deer and elk herds, to monitor the incidence of the disease, to support 
State efforts to control the disease, and for other purposes; to the 
Committee on Agriculture, Nutrition, and Forestry.
  Mr. ALLARD. Mr. President, I rise before my colleagues today to 
address the very serious matter of chronic wasting disease. As a United 
States Senator, chronic wasting disease presents a great animal health 
challenge. As a Veterinarian, chronic wasting disease presents an even 
greater challenge to the scientific communities of both the States and 
the Federal Government. In a mounting bipartisan effort to defeat the 
disease, I, along with Senators Feingold, Kohl and Campbell, introduce 
the ``Chronic Wasting Disease State Support Act of 2002.''
  The importance of the title cannot be emphasized enough. Although the 
bill authorizes a substantial amount Federal funding to fight and 
eradicate the disease, the States will retain their undisputed primacy 
and policy-making authority with regard to wildlife management. Nothing 
in this act interferes with or otherwise affects the primacy of the 
States in managing wildlife generally, or managing, surveying and 
monitoring the incidence of chronic wasting disease.
  Chronic wasting disease, or CWD, may be a new threat to some. Others 
may not be familiar with it at all. However, it is not new to those of 
us in Colorado and Wyoming, who have been dealing with it for over 
twenty years, and if the disease continues to spread, those unfamiliar 
with the fatal disease will, in time, become experts in CWD policy. The 
scientific community has gone to great lengths to deal with the disease 
on limited budgets. These experts, through scientific publication and 
Congressional hearings, have told us that, although we have learned a 
tremendous amount about chronic wasting disease, there is much that we 
do not know and much that we must do to eradicate it. One thing we do 
know is that sound science is the answer, and that the Chronic Wasting 
Disease State Support Act of 2002 is intended to greatly increase 
research, monitoring, surveillance, and management of the disease on 
all levels.
  Increased research and research funding is necessary because the 
disease is quite simply a mystery--the origin and transmission of CWD 
is unknown. Unfortunately, the treatment for chronic wasting disease is 
all too familiar. The only way to treat an animal or to contain the 
disease is to destroy the animal and cull the herd. Together, we must 
embark on an ambitious and sound scientific commitment for research and 
investigation to end chronic wasting disease. That is what this bill 
calls for--cooperation and collaboration, working together at both the 
state and federal level to achieve a common objective. We must end 
chronic wasting disease, and we must begin our eradication efforts now.
  The impact CWD will have on wildlife and agriculture is undeniable, 
and the economic and emotional toll of the disease cannot be 
overstated. Communities that are economically reliant upon deer and elk 
related enterprises will feel the impact of CWD as concern about the 
disease grows. But we can stop this, and we must stop this. We have an 
opportunity to restore cervid health, to contain the disease, and, most 
importantly, to eradicate the disease. This is the challenge that I 
urge my colleagues to accept, and to take decisive action; adequate 
research funding that is directed toward the complete eradication of 
chronic wasting disease starts with this authorizing legislation.
  In those States that are already dealing with CWD, the fiscal demands 
required to manage the disease is quite apparent. State budgets are 
stretched thin as they cull wild and captive herds and research for 
workable solutions to stop the disease. An infusion of Federal 
resources and technical assistance is required to help the States keep 
CWD from spreading, to treat infected or exposed populations, and to 
greatly expand research for testing and possible cures. This bill does 
just that by providing assistance in the form of grants, Federal 
research programs and incidence reporting, as well as scientific 
assistance. State and federal cooperation will protect animal welfare, 
safeguard our valued livestock industry, provide relief to family elk 
ranchers, help guarantee America's food safety, and protect the public 
health.
  The Chronic Wasting Disease Act of 2002 provides the foundation for a 
nationwide increase in diagnostic capabilities. Undoubtedly, the spread 
of CWD and the increased awareness of the disease, will cause the 
demand for testing to grow exponentially--this bill helps us prepare to 
handle a large volume of cases efficiently and reliably. The 
legislation calls for the development of new testing methods to help us 
understand the disease, as well as developing a live test.
  Chronic wasting disease presents a common problem to the states and 
the federal government. The federal conduit role that is provided in 
the bill will allow animal health experts to unravel the CWD mystery. 
The challenge we face is to achieve what we all recognize as a common 
objective--to understand CWD and to eradicate it. But, we must act 
quickly or this disease will redefine the wildlife characteristics of 
our States. I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2560

       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 ``Chronic Wasting Disease 
     State Support Act of 2002''.

     SEC. 2. DEFINITION OF CHRONIC WASTING DISEASE.

       In this Act, the term ``chronic wasting disease'' means the 
     animal disease afflicting deer and elk that--
       (1) is a transmissible disease of the nervous system 
     resulting in distinctive lesions in the brain; and
       (2) belongs to the group of diseases known as transmissible 
     spongiform encephalopathies, which group includes scrapie, 
     bovine spongiform encephalopathy, and Cruetzfeldt-Jakob 
     disease.

     SEC. 3. FINDINGS.

       Congress finds the following:
       (1) Pursuant to State and Federal law, the States retain 
     undisputed primacy and policy-making authority with regard to 
     wildlife management, and nothing in this Act interferes with 
     or otherwise affects the primacy of the States in managing 
     wildlife generally, or managing, surveying, and monitoring 
     the incidence of chronic wasting disease.
       (2) Chronic wasting disease, the fatal neurological disease 
     found in cervids, is a fundamental threat to the health and 
     vibrancy of deer and elk populations, and the increased 
     occurrence of chronic wasting disease in regionally diverse 
     locations in recent months necessitates an escalation in 
     research, surveillance, monitoring, and management activities 
     focused on containing, managing, and eradicating this lethal 
     disease.
       (3) As the States move to manage existing incidence of 
     chronic wasting disease and insulate non-infected wild and 
     captive cervid populations from the disease, the Federal 
     Government should endeavor to provide integrated and holistic 
     financial and technical support to these States.
       (4) In its statutory role as supporting agent, relevant 
     federal agencies should provide consistent, coherent, and 
     integrated support structures and programs for the benefit of 
     State wildlife and agricultural administrators, as chronic 
     wasting disease can move freely between captive and wild 
     cervids across the broad array of Federal, State, and local 
     land management jurisdictions.
       (5) The Secretary of the Interior, the Secretary of 
     Agriculture, and other affected Federal authorities can 
     provide consistent, coherent, and integrated support systems 
     under existing legal authorities.
             TITLE I--DEPARTMENT OF THE INTERIOR ACTIVITIES

     SEC. 101. COMPUTER MODELING OF DISEASE SPREAD IN WILD CERVID 
                   POPULATIONS.

       (a) Modeling Program Required.--The Secretary of Interior 
     shall establish a modeling program to predict the spread of 
     chronic wasting disease in wild deer and elk in the United 
     States.
       (b) Role.--Computer modeling shall be used to identify 
     areas of potential disease concentration and future outbreak 
     and shall be made available for the purposes of targeting 
     public and private chronic wasting disease control efforts.

[[Page S4847]]

       (c) Data Integration.--Information shall be displayed in a 
     GIS format to support management use of modeling results, and 
     shall be displayed integrated with the following:
       (1) Land use data.
       (2) Soils data.
       (3) Elevation data.
       (4) Environmental conditions data
       (5) Wildlife data; and
       (6) Other data as appropriate.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of the Interior 
     $1,000,000 under this section.

     SEC. 102. SURVEILLANCE AND MONITORING PROGRAM REGARDING 
                   PRESENCE OF CHRONIC WASTING DISEASE IN WILD 
                   HERD OF DEER AND ELK.

       (a) Program Development.using existing authorities, the 
     Secretary of the Interior, acting through the United States 
     Geological Survey, shall conduct a surveillance and 
     monitoring program on federal lands managed by the Secretary 
     to identify--
       (1) the incidence of chronic wasting disease infection in 
     wild herds of deer and elk;
       (2) the cause and extend of the spread of the disease; and
       (3) potential reservoirs of infection and vectors promoting 
     the spread of the disease.
       (b) Tribal Assistance.--In developing the surveillance and 
     monitoring program for wild herds on federal lands, the 
     Secretary of the interior shall provide assistance to tribal 
     governments or tribal government entities responsible for 
     managing and controlling chronic wasting disease in 
     wildlife on tribal lands.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of the Interior 
     $3,000,000 to establish and support the surveillance and 
     monitoring program.
             TITLE II--DEPARTMENT OF AGRICULTURE ACTIVITIES

     SEC. 201. NATIONAL REPOSITORY OF INFORMATION REGARDING 
                   CHRONIC WASTING DISEASE.

       (a) Information Repository.--The United States Department 
     of Agriculture, using existing authorities, shall develop and 
     maintain an interactive, Internet-based web site that 
     displays--
       (1) surveillance and monitoring program data regarding 
     chronic wasting disease in both wild and captive cervid 
     populations and other wildlife that are collected by the 
     Department of Agriculture, the Department of the Interior, 
     other Federal agencies, and State agencies assisted under 
     this Act; and
       (2) modeling information regarding the spread of chronic 
     wasting disease in the United States; and
       (3) other relevant information regarding chronic wasting 
     disease received from other sources.
       (b) Information Sharing Policy.--The national repository 
     shall be available as a resource for federal and state 
     agencies responsible for managing and controlling chronic 
     wasting disease and for institutions of higher education and 
     other public or private research entities conducting research 
     regarding chronic wasting disease. Data from the repository 
     shall be made available to other federal agencies, State 
     agencies and the general public upon request.

     SEC. 202. SAMPLING AND TESTING PROTOCOLS.

       (a) Sampling Protocol.--Within 30 days of enactment of this 
     Act, the Secretary of Agriculture shall release guidelines 
     for the use by federal, state, tribal and local agencies for 
     the collection of animal tissue to be tested for chronic 
     wasting disease. Guidelines shall include, at a minimum, 
     procedures for the collection and stabilization of tissue 
     samples for transport for laboratory assessment. Such 
     guidelines shall be updated as necessary.
       (b) Testing Protocol.--Within 30 days of enactment of this 
     Act, the Secretary of Agriculture shall release a protocol to 
     be used in the laboratory assessment of samples of animal 
     tissue that may be contaminated with chronic wasting disease.
       (c) Laboratory Certification.--Within 45 days of enactment 
     of this Act, the Secretary of Agriculture shall develop a 
     program for the inspection and certification of federal and 
     non-federal laboratories conducting chronic wasting disease 
     tests.
       (d) Development of New Tests.--The Secretary of Agriculture 
     shall accelerate research into the development of live animal 
     tests for chronic wasting disease, including field diagnostic 
     tests, and the development of testing protocols that reduce 
     laboratory test processing time.

     SEC. 203. ERADICATION OF CHRONIC WASTING DISEASE IN HERDS OF 
                   DEER AND ELK.

       (a) Captive Herd Program Development.--The Secretary of 
     Agriculture, acting through the Animal and Plant Health 
     Inspection Service, shall develop a program to identify the 
     rate of chronic wasting disease infection in captive herds of 
     deer and elk, the cause and extent of the spread of the 
     disease, and potential reservoirs of infection and vectors 
     promoting the spread of the disease.
       (1) Implementation.--The Secretary of Agriculture shall 
     provide financial and technical assistance to States and 
     tribal governments to implement surveillance and monitoring 
     program for captive herds.
       (2) Cooperation.--In developing the surveillance and 
     monitoring program for captive herds, the Secretary of 
     Agriculture shall cooperate with State agencies responsible 
     for managing and controlling chronic wasting disease in 
     captive wildlife. Grantees under this section shall submit to 
     the Secretary of Agriculture a plan for monitoring chronic 
     wasting disease in captive wildlife and reducing the risk of 
     disease spread through captive wildlife transport. As a 
     condition of awarding aid under this section, the Secretary 
     of Agriculture may prohibit or restrict the--
         (A) movement in interstate commerce of any animal, 
     article, or means of conveyance if the Secretary determines 
     that the prohibition or restriction is necessary to prevent 
     the introduction or dissemination of chronic wasting disease; 
     and
         (B) use of any means of conveyance or facility in 
     connection with the movement in interstate commerce of any 
     animal or article if the Secretary determines that the 
     prohibition or restriction is necessary to prevent the 
     introduction or dissemination of chronic wasting disease.
       (3) Coordination.--The Secretary of Agriculture, in 
     cooperation with the Secretary of the Interior, shall 
     establish uniform standards for the collection and assessment 
     of samples and data derived from the surveillance and 
     monitoring program.
       (b) Wild Herd Program.--The Secretary of Agriculture, 
     acting through the Animal and Plant Health Inspection 
     Service, shall, consistent with existing authority, assist 
     states in reducing the incidence of chronic wasting disease 
     infection in wild herds of deer and elk.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Agriculture $2,000,000 
     to conduct activities under this section.

     SEC. 204. EXPANSION OF DIAGNOSTIC TESTING CAPACITY.

       (a) Purpose.--Diagnostic testing will continue to be 
     conducted on samples collected under the surveillance and 
     monitoring programs regarding chronic wasting disease 
     conducted by the states and the Federal Government, including 
     the programs required by this Act, but current laboratory 
     capacity is inadequate to process the anticipated sample 
     load.
       (b) Upgrading of Federal Facilities.--The Secretary of 
     Agriculture shall provide for the upgrading of Federal 
     laboratories to facilitate the timely processing of samples 
     from the surveillance and monitoring programs required by 
     this Act and related epidemiological investigation in 
     response to the results of such processing.
       (c) Upgrading of Certified Laboratories.--Using the grant 
     authority provided under section 2(d) of the Competitive, 
     Special and Facilities Research Grant Act (7 U.S.C. 450i(d)), 
     the Secretary of Agriculture shall make grants to provide for 
     the upgrading of laboratories certified by the Secretary to 
     facilitate the timely processing of samples from surveillance 
     and monitoring programs and related epidemiological 
     investigation in response to the results of such processing.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Agriculture $7,500,000 
     to carry out this section.

     SEC. 205. EXPANSION OF AGRICULTURAL RESEARCH SERVICE 
                   RESEARCH.

       (a) Expansion.--The Secretary of Agriculture, acting 
     through the Agricultural Research Service, shall expand and 
     accelerate basic research on chronic wasting disease, 
     including research regarding detection of chronic wasting 
     disease, genetic resistance, tissue studies, and 
     environmental studies.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Agriculture $1,000,000 
     to carry out this section.

     SEC. 206. EXPANSION OF COOPERATIVE STATE RESEARCH, EDUCATION 
                   AND EXTENSION SERVICE SUPPORTED RESEARCH AND 
                   EDUCATION.

       (a) Research Efforts.--The Secretary of Agriculture, acting 
     through the Cooperative State Research, Education and 
     Extension Service, shall expand the grant program regarding 
     research on chronic wasting disease.
       (b) Educational Efforts.--The Secretary of Agriculture 
     shall provide educational outreach regarding chronic wasting 
     disease to the general public, industry and conservation 
     organizations, hunters, and interested scientific and 
     regulatory communities.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Agriculture--
       (1) $3,000,000 to carry out subsection (a); and
       (2) $1,000,000 to carry out subsection (b).
                     TITLE III--GENERAL PROVISIONS

     SEC. 301. INTERAGENCY COORDINATION.

       (a) In General.--Within 60 days of enactment after the date 
     of enactment of this Act, the Secretary of Agriculture and 
     the Secretary of the Interior, shall enter into a cooperative 
     agreement for the purpose of coordinating actions and 
     disbursing funds authorized under Section 302 of this title 
     to prevent the spread of chronic wasting disease and related 
     diseases in the United States.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretaries shall submit to 
     Congress a report that--
       (1) describes actions that are being taken, and will be 
     taken, to prevent the further outbreak of chronic wasting 
     disease and related diseases in the United States; and
       (2) contains any additional recommendations for additional 
     legislative and regulatory actions that should be taken to 
     prevent the spread of chronic wasting disease in the United 
     States.

[[Page S4848]]

     SEC. 302. INTERAGENCY GRANTS FOR STATE AND TRIBAL EFFORTS TO 
                   MANAGE CHRONIC WASTING DISEASE IN WILDLIFE.

       (a) Availability of Assistance.--As a condition of the 
     cooperative agreement described in Section 301, the Secretary 
     of Agriculture and the Secretary of the Interior shall 
     develop a grant program to allocate funds appropriated to 
     carry out this section directly to the State agency 
     responsible for wildlife management in each State that 
     petitions the Secretary for a portion of such fund to develop 
     and implement long term management strategies to address 
     chronic wasting disease in wildlife.
       (b) Funding Priorities.--In determining the amounts to be 
     allocated to grantees under subsection (a), priority shall be 
     given based on the following criteria:
       (1) Relative scope of incidence of chronic wasting disease 
     in the State, with priority given to those jurisdictions with 
     the highest incidence of the disease.
       (2) expenditures on chronic wasting disease management, 
     monitoring, surveillance, and research, with priority given 
     to those States and tribal governments that have shown the 
     greatest financial commitment to managing, monitoring, 
     surveying, and researching chronic wasting disease.
       (3) comprehensive and integrated policies and programs 
     focused on chronic wasting disease management between 
     involved State wildlife and agricultural agencies and tribal 
     governments, with priority given to grantees that have 
     integrated the programs and policies of all involved agencies 
     related to chronic wasting disease management.
       (4) Rapid response to new outbreaks of chronic wasting 
     disease, whether occurring in States in which chronic wasting 
     disease is already found or States with first infections, 
     with the intent of containing the disease in any new area of 
     infection.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated $10,000,000 to carry out this subsection.

     SEC. 303. RULEMAKING.

       (a) Joint Rulemaking.--To ensure that the surveillance and 
     monitoring programs and research programs required by this 
     Act are compatible and that information collection is carried 
     out in a manner suitable for inclusion in the national 
     database required by section 201, the Secretary of the 
     Interior and the Secretary of Agriculture shall jointly 
     promulgate rules to implement this Act.
       (b) Procedure.--The promulgation of the rules shall be made 
     without regard to--
       (1) chapter 35 of title 44, United States Code 13 (commonly 
     know as the ``Paperwork Reduction Act'');
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) the notice and comment provisions of section 553 of 
     title 5, United States Code.
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out this section, the Secretary of the Interior and the 
     Secretary of Agriculture shall use the authority provided 
     under section 808 of title 5, United States Code.
       (d) Relation to Other Rulemaking and Law.--The requirement 
     for joint rulemaking shall not be construed to require any 
     delay in the promulgation by the Secretary of Agriculture of 
     rules regarding the interstate transportation of captive deer 
     or elk or to effect any other rule or public law implemented 
     by the Secretary of Agriculture or the Secretary of the 
     Interior regarding chronic wasting disease before the date of 
     the enactment of this Act.

  Mr. FEINGOLD. Mr. President, I rise today to join my colleague from 
Colorado, Senator Allard in introducing comprehensive legislation to 
address the problem of chronic wasting disease. I am delighted to be 
working with him on this bill, and commend him and his staff for all 
their tireless efforts. This disease has become a serious problem 
affecting wild deer in my home State of Wisconsin.
  Chronic wasting disease belongs to the family of transmissible 
spongiform encephalopathies TSEs, diseases. TSEs are a group of 
transmissible, slowly progressive, degenerative diseases of the central 
nervous systems of several species of animals. Animal TSEs include, in 
addition to chronic wasting disease, CWD, in deer and elk, bovine 
spongiform encephalopathy in cattle, scrapie in sheep and goats, feline 
sponfiform encephalopathy in cats, and mink spongiform encephalopathy 
in mink.
  States like mine are now contemplating how and where their Department 
of Natural Resources will cull deer in an attempt to slow the spread of 
the disease, and it is a difficult choice. Wisconsin is contemplating a 
herd reduction of up to 15,000 animals in ten counties. With a disease 
that has no known mechanism of transmission, large scale herd reduction 
may not fully address the problem. Yet Wisconsin is in the difficult 
position of not being able to put off taking action to slow the 
epidemic until every scientific question has been answered in detail. 
Wisconsinites treasure the sight of deer in our woods and tourism and 
hunting are important to our State's economy, as well. In part, 
Wisconsin's struggles to manage the disease have been complicated by 
struggles to interact with a variety of different Federal agencies, 
each with differing and intersecting responsibilities on the issue of 
chronic wasting disease.
  In that vein, the legislation we are introducing is comprehensive, 
addressing both short term and long term needs. It authorizes a $29 
million dollar Federal chronic wasting disease program that will be 
administered by the United States Departments of Agriculture, USDA, and 
Interior. It is similar to legislation introduced in the House of 
Representatives by the Representative from Colorado, Mr. McInnis), 
which has been cosponsored on a bi-partisan basis by Wisconsin 
delegation members in the House of Representatives. I think it is 
extremely appropriate that legislators from Colorado, the state that 
has the longest history in chronic wasting disease, have made a 
concerted effort to work with Wisconsin members who are struggling with 
a new outbreak that has emerged solely in wild deer. I deeply 
appreciate the commitment of the Representative from Colorado, Mr. 
McInnis, toward finding a solution that works for both our States. I 
think these are good comprehensive efforts, and I would like to 
highlight a few provisions in detail.
  The bill I am introducing with the Senator from Colorado, Mr. Allard, 
requires USDA to work jointly with Interior and authorizes them to give 
up to $10 million in grants to states to help them plan and implement 
management strategies to address chronic wasting disease in both 
captive and wild herds of deer and elk. USDA is directed, in addition, 
to develop a national chronic wasting disease incident database, 
building on the existing USDA reporting program.
  I am particularly pleased that the Senator from Colorado, Mr. Allard, 
has incorporated provisions that I authored to address Wisconsin's 
urgent short term need for enhanced testing capacity. Under the bill, 
USDA is required to release, within 30 days, protocols both for labs to 
use in performing tests for chronic wasting disease and for the proper 
collection of animal tissue to be tested. USDA is further required to 
develop a certification program for federal and non-federal labs 
conducting chronic wasting disease tests within 45 days of enactment. I 
hope all these measures will enhance Wisconsin' capacity to accurately 
test deer this year. To address longer terms needs, the USDA is 
directed to accelerate research into the development of live animal 
tests for chronic wasting disease, including field diagnostic tests, 
and the development of testing protocols that reduce laboratory test 
processing time.
  This bill is appropriate, because state wildlife and agriculture 
departments do not have the fiscal or scientific capacity to adequately 
confront the problem. Their resources are spread too thin as they 
attempt to prevent the disease from spreading. Federal help in the form 
of management funding, research grants, and scientific expertise is 
urgently needed. Federal and State cooperation will protect animal 
welfare, safeguard our valued livestock industry, help guarantee 
America's food safety, and protect the public health.
  I look forward to working with my colleague from Colorado, Mr. 
Allard, to seek passage of this measure.
                                 ______
                                 
      By Mr. ROCKEFELLER (by request):
  S. 2561. A bill to amend title 38, United States Code, to transfer 
from the Secretary of Labor to the Secretary of Veterans Affairs 
certain responsibilities relating to the provision of employment and 
other services to veterans and other eligible persons; to require the 
establishment of a new competitive grants program through which 
employment service shall be provided to veterans, servicemembers, and 
other eligible persons; 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

[[Page S4849]]

such measures will be available for review and consideration. This 
``by-request'' bill contains four titles and proposes to move and 
modify employment service programs for veterans and other eligible 
persons from the Department of Labor to the Department of Veterans 
Affairs.
  Title I of the proposed bill contains provisions governing the 
transition of certain veterans' employment services from the Department 
of Labor's Veterans Employment and Training Service, or VETS, program 
to a new program within the Department of Veterans Affairs to be known 
as the Veterans' Employment, Business Opportunity, and Training, or 
VEBOT, program. This bill would mandate that the VEBOT program provide 
performance-based competitive grants to State Governors or other 
entities for the purpose of providing employment services to veterans.
  The VETS program currently provides grants for Disabled Veterans' 
Outreach Programs and Local Veterans Employment Representatives, LVER. 
These programs are staffed by State employees and provide employment 
services for veterans through State employment service offices and one-
stop centers.
  Section 103 delegates responsibility to the Secretary of Veterans 
Affairs to define by regulations virtually every aspect of the VEBOT 
program. This includes establishing and monitoring performance 
standards for state VEBOT programs, eligibility criteria for VEBOT 
clients, services to be provided by these programs, and service 
delivery practices.
  Titles II and III mandate that responsibility for transition 
assistance and Homeless Veterans Reintegration Programs shall be 
transferred from the Department of Labor to the Department of Veterans 
Affairs.
  The transfer of veterans' employment programs currently administered 
by the Department of Labor to the Department of Veterans Affairs would 
be completed by the later of September 30, 2003, or the date upon which 
the regulations prescribed by the Secretary of Veterans Affairs to 
govern these programs take effect.
  Again, 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. 2561

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

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

       (a) Short Title.--This Act maybe cited as the ``Veterans' 
     Employment, Business Opportunity, and Training Act of 2002''.
       (b) References.--Except as otherwise expressly provided, 
     whenever in this Act an amendment or repeal is expressed in 
     terms of an amendment, or repeal of, 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.

                      TITLE I--EMPLOYMENT SERVICES

     SEC. 101. DEFINITIONS.

       As used in this title--
       (1) The term ``veteran'' has the same meaning as ``eligible 
     veteran'' as defined in section 4211(4) of title 38, United 
     States Code.
       (2) The term ``eligible person'' means--
       (A) the spouse of any person who died of a service-
     connected disability;
       (B) the spouse of any member of the Armed Forces serving on 
     active duty who, at the time of application for assistance 
     under this Act, is listed, pursuant to section 556 of title 
     37, United States Code, and regulations issued thereunder, by 
     the Secretary concerned in one or more of the following 
     categories and has been so listed for a total of more than 
     ninety days: (i) missing in action, (ii) captured in line of 
     duty by a hostile force, or (iii) forcibly detained or 
     interned in line of duty by a foreign government or power; or
       (C) the spouse of any person who has a total disability 
     permanent in nature resulting from a service-connected 
     disability or the spouse of a veteran who died while a 
     disability so evaluated was in existence.
       (3) The term ``State'' means each of the several States of 
     the United States, the District of Columbia, and the 
     Commonwealth of Puerto Rico, and may include, to the extent 
     determined necessary by the Secretary of Veterans Affairs and 
     feasible for all purposes of this title, Guam, American 
     Samoa, the Virgin Islands, the Commonwealth of the Northern 
     Marinas Islands, and the Trust Territory of the Pacific 
     Islands.
       (4) The term ``service member'' has the same meaning as an 
     individual who is a member of the Armed Forces as defined in 
     section 101(10) of title 38, United States Code,and who is 
     being separated from the Armed Forces within the time periods 
     specified in section 1142(a)(3) of title 10, United States 
     Code.

     SEC. 102. PURPOSE

       In furtherance of the Nation's responsibility towards 
     alleviating unemployment and underemployment among veterans, 
     there shall be established a national performance-based job-
     search assistance program that: (1) will provide high-
     quality, job-search service to veterans, servicemembers, and 
     other eligible persons, focused on assisting such individuals 
     in obtaining and maintaining employment, as well as reducing 
     the duration of individual's unemployment; (2) will assist 
     employers in locating and hiring qualified veterans, 
     servicemembers, and other eligible persons; and (3) will be 
     accessible to veterans, servicemembers, and other eligible 
     persons. The Department of Veterans Affairs would continue to 
     aggressively use web-based technology to provide better 
     service to veterans around the world.

     SEC. 103. ESTABLISHMENT OF NEW COMPETITIVE GRANTS PROGRAM.

       (a) Establishment of New Program.--Notwithstanding any 
     other provision of law, the Secretary of Veterans Affairs 
     shall establish a competitive grants program to be referred 
     to as the ``Veterans' Employment, Business Opportunity and 
     Training Program'' (``VEBOT'') through which State Governors 
     or other entities, as may be appropriate, would receive 
     grants for the purpose of providing employment services to 
     veterans, servicemembers, and other eligible persons within 
     each State. The purpose of such program shall be to assist 
     veterans, servicemembers, and other eligible persons in 
     obtaining employment by providing for access to optimal 
     employment opportunities.
       (b) Implementation of New Program.--The Secretary of 
     Veterans Affairs shall prescribe such regulations as the 
     Secretary considers appropriate to implement the VEBOT 
     program required to be established under this section. Such 
     regulations shall address matters relating to the development 
     and implementation of the program, including: (1) the 
     determination of eligibility criteria for affected veterans, 
     servicemembers, or other eligible persons, for employment 
     services and other related services that shall be provided; 
     (2) the nature and type of services to be provided; (3) the 
     most appropriate and efficient means to provide such 
     services; (4) the most appropriate means to monitor and 
     assess the performance of entities providing employment 
     services; (5) the manner in which the Department of Veterans 
     Affairs will cooperate with State employment agencies to 
     ensure that veterans continue to have access to the full 
     range of workforce services available through existing State 
     and local one-stop employment-service delivery systems; (6) 
     the manner in which the Department of Veterans Affairs will 
     coordinate with the Department of Labor to ensure that 
     veterans continue to receive priority or other special 
     consideration in the provision of employment services through 
     existing State and local one-stop employment-service delivery 
     systems, as required by law or regulation; and (7) the entity 
     or organization within the Department of Veterans Affairs 
     that will administer the program. In developing the 
     regulations, the Secretary shall take into consideration the 
     recommendations of the task force required to be established 
     under subsection (c) of this section and shall consult with 
     the Secretary of Defense with respect to eligibility criteria 
     affecting servicemembers.
       (c) Task Force To Be Established; Consultation With 
     Designated Parties.--The Secretary of Veterans Affairs shall 
     establish a task force comprised of at least eleven (but not 
     more than fifteen) members which shall, not later than 180 
     days from the date of its establishment, make recommendations 
     to the Secretary regarding the matters described in 
     subsection (b) of this section. The task force shall include 
     representatives of veterans service organizations, 
     representatives of employers in private industry or employer 
     organizations, and representatives of State Governors. The 
     Secretary of Labor, the Secretary of Defense, and the 
     Secretary of Transportation shall be ex officio members of 
     the task force.
       (d) Grants, Program To Be Competitive; Grants To Include 
     Performance Requirements.--The Secretary of Veterans Affairs 
     shall ensure that all services under the VEBOT program are 
     provided through grants awarded either directly or indirectly 
     on a competitive basis and that such grants include 
     appropriate performance requirements with clear outcome 
     measures. States or other entities may join in consortia to 
     provide services to veterans.
       (e) Performance Measurement.--(1) Each Governor of a State 
     or other entity receiving funds under a grant authorization 
     by this section shall achieve the performance requirements as 
     agreed in the established provisions for such grant. If 
     unanticipated circumstances arising in a State would 
     adversely affect a grantee's ability to meet its performance 
     requirements, the grantee may request that the Secretary 
     adjust the agreed-to levels of performance. If a grantee 
     fails to meet the agreed-to levels of performance, the 
     Secretary of Veterans Affairs may provide to the grantee 
     assistance in such form as the Secretary may consider 
     appropriate,

[[Page S4850]]

     including training, technical assistance, staff 
     development, and activities replicating those used by 
     other successful grants and projects with demonstrated 
     effectiveness. In the event of continued non-performance, 
     the Secretary may, pursuant to such regulations as the 
     Secretary may prescribe, remove the funds from a grantee 
     and directly or indirectly solicit through a competition a 
     new grantee and service provider.
         (2) Consistent with State Law, the Secretary of Veterans 
     Affairs and States and other entities identified to deliver 
     services under the VEBOT program may utilize wage record 
     information for program performance measurement as prescribed 
     by the Secretary of Veterans Affairs. The Secretary of Labor 
     shall provide assistance to the Secretary of Veterans Affairs 
     in gaining access to wage information for this purpose.
       (f) Cost Principles.--(1)(A) Each Governor of a State or 
     other entity receiving funds under this section shall comply 
     with the applicable uniform-cost principles included in the 
     appropriate circulars or directives of the Office of 
     Management and Budget for the type of entity, receiving the 
     funds, as well as regulations prescribed by the Secretary of 
     Veterans Affairs. Each grantee shall establish such fiscal 
     controls and fund accounting procedures as may be necessary 
     to assure the proper disbursal of, and accounting for, 
     Federal funds allocated to any provider receiving funds under 
     this section and shall maintain appropriate records in 
     accordance with generally accepted accounting principles 
     applicable in each State. Each grantee shall comply with the 
     appropriate uniform administrative requirements for grants, 
     contracts and agreements applicable for the type of entity 
     receiving funds as promulgated in circulars or directives of 
     the Office of Management and Budget.
       (B) If a grantee determines that a service provider acting 
     under a contract or sub-grant is not in compliance with the 
     requirements of this Act, the grantee shall take corrective 
     action either to secure the service provider's prompt 
     compliance or to remove the funds from the service provider 
     for failure to so comply. If the grantee fails to take such 
     corrective action, the Secretary may, pursuant to such 
     regulations as the Secretary may prescribe, remove funds from 
     the grantee and directly or indirectly solicit through a 
     competition a new grantee and service provider.
       (2) Unless approved by the Secretary of Veterans Affairs, 
     not more than 15 percent of the funds available under this 
     section to each State Governor or other entity may be 
     expended by a service provider and State Governor for costs 
     of administration. The Secretary shall prescribe regulations 
     governing the expenditure of funds for costs of 
     administration under this paragraph.
       (g) Pilot Projects Authorized.--In connection with the 
     development and implementation of the VEBOT program, the 
     Secretary of Veterans Affairs, during each fiscal year, may 
     reserve up to 25 percent of the total available funding for 
     grants to finance national-level primary services and to 
     create pilot programs and demonstration projects to establish 
     the effectiveness and viability of special proposed 
     innovative program designs and service delivery systems.

     SEC. 104. TRANSFER OF RESPONSIBILITY FOR ADMINISTRATION OF 
                   CERTAIN EMPLOYMENT SERVICES TO SECRETARY OF 
                   VETERANS AFFAIRS.

       Notwithstanding any other provision of law, during the 
     period beginning on October 1, 2002, and ending on the later 
     of September 30, 2003, or the date upon which regulations 
     prescribed by the Secretary of Veterans Affairs under section 
     103(b) of this title become effective, responsibilities 
     assigned to the Secretary of Labor under sections 4101 
     through 4102A (Other than responsibilities assigned under 
     section 4102A regarding the purposes of chapters 42 and 43 of 
     title 38, United States Code), sections 4103 through 4108, 
     and section 4110 of title 38, United States Code, shall be 
     assumed by the Secretary of Veterans Affairs, and the 
     function of the Assistant Secretary of Labor for Veterans' 
     Employment and Training in the Department of Labor, as well 
     as such personnel of the Department of Labor as may be deemed 
     necessary to carry out such function, shall be transferred 
     from the Department of Labor to the Department of Veterans 
     Affairs. During that period, the Secretary of Veterans 
     Affairs shall coordinate activities with the Secretary of 
     Labor to facilitate the transfer of functions associated with 
     the administration of employment services provided under 
     chapter 41 of title 38, United States Code, that 
     are conducted by disabled veteran's outreach programs 
     specialists and local veterans' employment 
     representatives.

     SEC. 105. REPEAL OR AMENDMENT OF EXISTING AUTHORITIES.

       (A) Repeal of Authorities.--Effective on the later of 
     September 30, 2003, or the date upon which regulations 
     prescribed by the Secretary of Veterans Affairs under section 
     103(D) of this Act become effective, the following sections 
     are repealed: 4100 through 4104A, 4105(b), 4106 through 4109, 
     and 4110A.
       (b) Conforming Amendment to Chapter 43 Provision.--Section 
     4321 is amended by striking out ``(through the Veterans' 
     Employment and Training Service)''.
       (c) Advisory Committee.--Section 4110 is amended--
       (1) in subsection (a)(1), by striking out ``Department of 
     Labor'' and by inserting in lieu thereof ``Department of 
     Veterans Affairs'';
       (2) in subsection (a)(2), by inserting ``Department of 
     Veterans Affairs and the'' before ``Department of Labor'';
       (3) in subsection (b), by striking out ``Secretary of 
     Labor'' and inserting in lieu thereof ``Secretary of Veterans 
     Affairs'';
       (4) in subsection (c), by striking out ``Labor'' each place 
     it appears and inserting in lieu thereof ``Veterans 
     Affairs''; and
       (5) in subsection (d)--
       (A) by striking out ``Secretary of Veterans Affairs'' each 
     place it appears and inserting in lieu thereof ``Secretary of 
     Labor'';
       (B) by striking out in paragraph (6) ``The Assistant 
     Secretary of Labor for Veterans Employment and Training'' and 
     inserting in lieu thereof ``The official designated by the 
     Secretary of Veterans Affairs to administer the Veterans' 
     Employment, Business Opportunity and Training Program'';
       (C) by striking out in paragraph (11) ``The Director of the 
     United States Employment Service.'' and inserting in lieu 
     thereof ``A representative of State Governors.''; and
       (D) by striking out in paragraph (12) ``Secretary of 
     Labor'' and inserting in lieu thereof ``Secretary of Veterans 
     Affairs'';
       (6) in subsection (e)--
       (A) by striking out ``Secretary of Labor'' each place it 
     appears and inserting in lieu thereof ``Secretary of Veterans 
     Affairs''; and
       (B) by striking out in paragraph (4) ``through the Veterans 
     Employment and Training Service'';
       (7) in subsection (f)--
       (A) by striking out ``Secretary of Labor'' each place it 
     appears and inserting in lieu thereof ``Secretary of Veterans 
     Affairs''; and
       (B) by striking out ``Department of Labor'' and inserting 
     in lieu thereof ``Department of Veterans Affairs''; and
       (8) in subsection (g), by striking out ``Secretary of 
     Labor'' and inserting in lieu thereof ``Secretary of Veterans 
     Affairs''.

                    TITLE II--TRANSITION ASSISTANCE

     SEC. 201. TRANSFER OF RESPONSIBILITY FOR ADMINISTRATION OF 
                   TRANSITION ASSISTANCE PROGRAM TO THE SECRETARY 
                   OF VETERANS AFFAIRS.

       Notwithstanding any other provision of law--
       (1) references to the ``Secretary of Labor'' in section 
     1144 of title 10, United States Code, shall be deemed to be 
     references to the Secretary of Veterans Affairs;
       (2) references to the ``Secretary of Veterans Affairs'' in 
     section 1144 of title 10, United States Code, shall be deemed 
     to be references to the Secretary of Labor; and
       (3) section 1144(d) of title 10, United States Code, is 
     amended by striking out paragraph (1) and inserting in lieu 
     thereof the following:
       ``(1) provide, as the case may be, for the use of personnel 
     of grant recipients under section 103(b) of the Veterans' 
     Employment, Business Opportunity, and Training Act of 2002 or 
     such other personnel as the Secretary of Veterans Affairs may 
     determine to be appropriate, to the extent that the 
     Secretary determines that such use will not significantly 
     interfere with the provision of services or other benefits 
     to eligible veterans and other eligible recipients of 
     services or benefits under programs administered by the 
     Secretary.''.

          TITLE III--HOMELESS VETERANS' REINTEGRATION PROGRAMS

     SEC. 301. TRANSFER OF RESPONSIBILITY FOR ADMINISTRATION OF 
                   HOMELESS VETERANS' REINTEGRATION PROGRAM TO THE 
                   SECRETARY OF VETERANS AFFAIRS.

       Section 2021 is amended--
       (a) by striking out ``Secretary of Labor'' each place it 
     appears and inserting in lieu thereof ``Secretary of Veterans 
     Affairs''; and
       (b) by striking out subsection (c) and redesignating 
     subsection (d) as subsection (c).

                        TITLE IV--EFFECTIVE DATE

     SEC. 401. EFFECTIVE DATE.

       Except where provided otherwise, the provisions of this Act 
     shall become effective on October 1, 2002.
                                  ____

                                                     May 15, 2002.
     Hon. Richard B. Cheney,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: There is transmitted herewith a draft 
     bill, the ``Veterans' Employment, Business Opportunity, and 
     Training Act of 2002,'' to amend title 38, United States 
     Code, to transfer from the Secretary of Labor to the 
     Secretary of Veterans Affairs certain responsibilities 
     relating to the provision of employment and other services to 
     veterans and other eligible persons; to require the 
     establishment of a new competitive grants program through 
     which employment services shall be provided to veterans, 
     servicemembers, and other eligible persons; and for other 
     purposes. I request that this bill be referred to the 
     appropriate committee for prompt consideration and enactment.
       Title I of the draft bill contains provisions that would 
     transfer from the Secretary of Labor to the Secretary of 
     Veterans Affairs responsibility, as well as staffing, for the 
     administration of employment and other services to veterans 
     under chapter 41 of title 38, United States Code, and require 
     the Secretary of Veterans Affairs to establish a new 
     competitive grants program, entitled the ``Veterans' 
     Employment, Business Opportunity and Training Program'' 
     (VEBOT), to replace current programs under chapter 41. The 
     VEBOT program would supplant three current grants activities 
     currently administered by the Assistant Secretary of Labor 
     for Veterans Employment and Training, including the Disabled 
     Veterans Outreach Program

[[Page S4851]]

     (DVOP), the Local Veterans Employment Representatives (LVER), 
     and the Homeless Veterans Reintegration Program (HVRP). 
     Because of the lead-time required to implement grants, VA 
     would keep existing Department of Labor-funded grants in 
     place during at least the first year after transfer. The 
     President's budget for Fiscal Year 2003 reflects the transfer 
     of $197 million and 199 full-time employee equivalents (FTEE) 
     from the Department of Labor to the Department of Veterans 
     Affairs (VA) to implement this proposal.
       Over the last decade, veterans have received less-than-
     adequate job-search assistance. A report issued by the 
     Congressional Commission on Servicemembers and Veterans 
     Transition Assistance, and at least four reports issued by 
     the General Accounting Office in the past five years, 
     extensively document long-standing shortfalls with the DVOP 
     and LVER programs. In spite of awareness in the veterans 
     community that these two programs are falling short of the 
     excellence that should be demanded of programs so important 
     to many veterans' ability to enjoy and secure the productive 
     life that their service defended for all Americans, 
     significant improvements to the programs have not occurred 
     because of legislative constraints. In order to improve 
     services to veterans, legislative reforms are essential. We 
     also believe that placement of the employment services 
     programs within VA will strengthen the focus on veterans' 
     needs. In light of VA's clear mission of service to veterans, 
     VA would be in a stronger position to objectively evaluate 
     veterans' employment assistance needs and develop a program 
     that better meets veterans' needs, while at the same time 
     ensuring adequate flexibility in design to allow for adapting 
     to the needs of future generations of veterans.
       Section 102 of the draft bill would set forth a statement 
     regarding the establishment of a national performance-based 
     job-search assistance program that: (1) would provide high-
     quality, job-search service to veterans, servicemembers, and 
     other eligible persons, focused on assisting such individuals 
     in obtaining and maintaining employment, as well as reducing 
     the duration of individuals' unemployment; (2) would assist 
     employers in locating and hiring qualified veterans, 
     servicemembers, and other eligible persons; and (3) would be 
     accessible to veterans, servicemembers, and other eligible 
     persons. VA would continue to aggressively use web-based 
     technology to provide better service to veterans around the 
     world.
       Section 103 of the draft bill would require the Secretary 
     to establish the VEBOT program, through which State Governors 
     or other entities, as may be appropriate, would receive 
     grants for the purpose of providing for employment services 
     to veterans, servicemembers, and other eligible persons 
     within each State. The stated purpose of the VEBOT program 
     would be to assist veterans, servicemembers, and other 
     eligible persons in obtaining employment by providing for 
     access to optimal employment opportunities. The Secretary 
     would be required to ensure that all services under the VEBOT 
     program are provided through grants awarded either directly 
     or indirectly on a competitive basis and that such grants 
     include appropriate performance requirements with clear 
     outcome measures.
       The Secretary would further be directed to prescribe 
     regulations that would address matters relating to the 
     development and implementation of the program, including: (1) 
     the determination of eligibility criteria for affected 
     veterans, servicemembers, or other eligible persons for 
     employment services and other related services that shall be 
     provided; (2) the nature and type of services to be provided; 
     (3) the most appropriate and efficient means to provide such 
     services; (4) the most appropriate means to monitor and 
     assess the performance of entities providing employment 
     services; (5) the manner in which the Department of Veterans 
     Affairs will cooperate with State employment agencies to 
     ensure that veterans continue to have access to the full 
     range of workforce services available through existing State 
     and local one-stop employment-service delivery systems; (6) 
     the manner in which the Department of Veterans Affairs will 
     coordinate with the Department of Labor to ensure that 
     veterans continue to receive priority or other special 
     consideration in the provision of employment services through 
     existing State and local one-stop employment-service delivery 
     systems, as required by law or regulation; and (7) the entity 
     or organization within the Department of Veterans Affairs 
     that will administer the program. In developing the 
     implementing regulations, the Secretary would be required to 
     take into consideration the recommendations of a task force 
     that would be required to be established under this section.
       Section 103 would also set forth specific performance-
     measurement criteria and responsibilities, as well as 
     procedures for ensuring compliance with cost principles, and 
     further, would authorize the Secretary to spend portions of 
     available funding to finance national-level primary services 
     and create pilot programs and demonstration projects to 
     establish the effectiveness and viability of specific 
     proposed innovative program designs and service delivery 
     systems.
       Section 104 of the draft bill would provide that, 
     notwithstanding any other provision of law, during the period 
     beginning on October 1, 2002, and ending on the later of 
     September 30, 2003, or the date upon which regulations 
     prescribed by the Secretary of Veterans Affairs become 
     effective, the responsibilities assigned to the Secretary of 
     Labor under sections 4101 through 4102A (other than 
     responsibilities assigned under section 4102A regarding the 
     purposes of chapters 42 and 43 of title 38, United States 
     Code), sections 4103 through 4108, and section 4110 of title 
     38, United States Code, shall be assumed by the Secretary of 
     Veterans Affairs. The function of the Assistant Secretary of 
     Labor for Veterans' Employment and Training in the Department 
     of Labor, as well as such personnel of the Department of 
     Labor as may be deemed necessary to carry out such function, 
     would be transferred from the Department of Labor to the 
     Department of Veterans Affairs. Further, during that period, 
     the two Secretaries would coordinate activities so as to 
     facilitate the transfer of functions associated with the 
     administration of employment services provided under chapter 
     41 of title 38, United States Code, that are conducted by 
     disabled veterans' outreach programs specialists and local 
     veterans' employment representatives. This would include 
     activities relating to the transition assistance program for 
     servicemembers nearing separation from the Armed Forces and 
     for homeless veterans in dire need of employment.
       Section 105 of the draft bill would repeal, effective on 
     the later of September 30, 2003, or the date upon which 
     regulations prescribed by the Secretary of Veterans Affairs 
     under section 103(b) of this Act become effective, several 
     sections of title 38, United States Code, that currently 
     govern the provision of employment-related services under 
     chapter 41. In addition, section 105 would make several 
     amendments to section 4110 of title 38, under which an 
     Advisory Committee on Veterans Employment and Training is 
     established, to reflect the transfer of responsibilities for 
     employment-related services for veterans from the Department 
     of Labor to the Department of Veterans Affairs.
       Section 201 of the draft bill would amend section 1144 of 
     title 10, United States Code, to provide for the transfer of 
     responsibility for the administration of the transition 
     assistance program from the Secretary of Labor to the 
     Secretary of Veterans Affairs. It would further provide, as 
     the case may be, for the use of personnel of grant recipients 
     under section 103(b) of the Veterans' Employment, Business 
     Opportunity, and Training Act of 2002 or such other personnel 
     as the Secretary of Veterans Affairs may determine to be 
     appropriate, to the extent that the Secretary determines that 
     such use will not significantly interfere with the provision 
     of services or other benefits to eligible veterans and other 
     eligible recipients of services or benefits under programs 
     administered by the Secretary.
       Section 301 of the draft bill would amend section 2021 of 
     title 38 to provide for the transfer of responsibility for 
     the administration of the Homeless Veterans Reintegration 
     Project from the Secretary of Labor to the Secretary of 
     Veterans Affairs. With respect to this program, we fully 
     expect to expand on what we believe have been highly 
     successful partnering efforts with States, local governments, 
     Native American Tribal governments, and faith-based and non-
     profit organizations under the State Cemetery, State Home and 
     Homeless Service Providers Grant and Per Diem program.
       Finally, section 401 of the draft bill would provide that, 
     except where otherwise provided, the provisions of the Act 
     would become effective on October 1, 2002.
       The Administration's budget reflects the transfer of 
     funding ($197 million in FY 2003) to support the affected 
     employment services programs from the Department of Labor to 
     VA and the transfer to VA of 199 FTEE to implement the 
     programs. Accordingly, no cost is associated with the 
     Administration's proposal.
       The Office of Management and Budget advises that there is 
     no objection to the submission of this legislation to the 
     Congress and that its enactment would be in accord with the 
     program of the President.
           Sincerely yours,
                                              Anthony J. Principi.
                                 ______
                                 
      By Mr. REID (for himself and Mr. Cochran):
  S. 2562. A bill to expand research regarding inflammatory bowel 
disease, and for other purposes; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. REID. Mr. President, I rise today for myself and Mr. Cochran to 
introduce the Inflammatory Bowel Disease Act, which will advance our 
knowledge of this serious health condition and our ability to treat 
people suffering from it.
  Crohn's disease and ulcerative colitis are chronic disorders of the 
gastrointestinal tract which represent the major causes of morbidity 
and mortality from digestive illness. Because they behave similarly, 
these disorders are collectively known as Inflammatory Bowel Disease. 
It can cause severe diarrhea, abdominal pain, fever, and rectal 
bleeding. Moreover, complications related to Inflammatory Bowel Disease 
can include arthritis, osteoporosis, anemia, liver disease, and colon 
cancer. Crohn's disease and ulcerative colitis are not fatal, but they 
can be devastating. We do not know their cause, and we have no cure. 
There

[[Page S4852]]

are an estimated 1 million people in the United States who suffer from 
Inflammatory Bowel Disease. In 1990, total annual medical costs for 
Crohn's Disease patients was $1 to $1.2 million, and for patients with 
colitis, $400 to $600 thousand.
  A recent medical breakthrough, identification of the gene for Crohn's 
Disease--opens up exciting new pathways for research to understand 
underlying disease mechanisms and to improve therapies for those who 
suffer from Inflammatory Bowel Disease. Our legislation establishes a 
distinct research program within the National Institute of Diabetes and 
Digestive and Kidney Diseases at the National Institutes of Health. 
Studies that translate findings from basic genetic and animal model 
research are among the promising areas to be advanced. With a program 
of Inflammatory Bowel Disease prevention and epidemiology at the 
Centers for Disease Control and Prevention, we can generate an accurate 
analysis of the make-up of the population with Inflammatory Bowel 
Disease, thereby obtaining invaluable clues to the potential causes and 
risks associated with the disease.
  The bill also will inform public and private health coverage policy 
by providing for a study of the coverage standards of Medicare, 
Medicaid, and private health insurance for therapies for Inflammatory 
Bowel Disease. It will be conducted by the Institute of Medicine of the 
National Academies of Science. In addition, the bill calls for a 
General Accounting Office study of the problems patients with 
Inflammatory Bowel Disease encounter when applying for disability 
insurance benefits.
  This bill will benefit millions of Americans who suffer from or who 
are at risk of developing Inflammatory Bowel Disease. It promises to 
alleviate much suffering, to assist patients in accessing sound and 
effective medical treatment, and to benefit those who are debilitated 
by Inflammatory Bowel Disease.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2562

       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 ``Inflammatory Bowel Disease 
     Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Crohn's disease and ulcerative colitis are serious 
     inflammatory diseases of the gastrointestinal tract. Crohn's 
     disease may occur in any section of the gastrointestinal 
     tract but is predominately found in the lower part of the 
     small intestine and the large intestine. Ulcerative colitis 
     is characterized by inflammation and ulceration of the 
     innermost lining of the colon. Because Crohn's disease and 
     ulcerative colitis behave similarly, they are collectively 
     known as inflammatory bowel disease. Both diseases present a 
     variety of symptoms, including severe diarrhea, crampy 
     abdominal pain, fever, and rectal bleeding. There is no known 
     cause of inflammatory bowel disease, or medical cure.
       (2) It is estimated that up to 1,000,000 people in the 
     United States suffer from inflammatory bowel disease.
       (3) In 1990, the total annual medical costs for Crohn's 
     disease patients was estimated at $1,000,000,000 to 
     $1,200,000,000.
       (4) In 1990, the total annual medical costs for ulcerative 
     colitis patients was estimated at $400,000,000 to 
     $600,000,000.
       (5) Inflammatory bowel disease patients are at high-risk 
     for developing colorectal cancer.

     SEC. 3. INFLAMMATORY BOWEL DISEASE RESEARCH EXPANSION.

       (a) In General.--The Director of the National Institute of 
     Diabetes and Digestive and Kidney Diseases shall expand, 
     intensify, and coordinate the activities of the Institute 
     with respect to research on inflammatory bowel disease with 
     particular emphasis on the following areas:
       (1) Genetic research on susceptibility for inflammatory 
     bowel disease, including the interaction of genetic and 
     environmental factors in the development of the disease.
       (2) Animal model research on inflammatory bowel disease, 
     including genetics in animals.
       (3) Clinical inflammatory bowel disease research, including 
     clinical studies and treatment trials.
       (4) Other research initiatives identified by the scientific 
     document entitled ``Challenges in Inflammatory Bowel 
     Disease''.
       (b) Authorization of Appropriations.--
       (1) In general.--For the purpose of carrying out this 
     section, there are authorized to be appropriated $75,000,000 
     in fiscal year 2003, $100,000,000 in fiscal year 2004, and 
     such sums as may be necessary for fiscal years 2005 through 
     2006.
       (2) Reservation.--Of the funds authorized to be 
     appropriated under paragraph (1), not more than 20 percent of 
     such funds shall be reserved to fund the training of 
     qualified health professionals in biomedical research focused 
     on inflammatory bowel disease and related disorders.

     SEC. 4. INFLAMMATORY BOWEL DISEASE PREVENTION AND 
                   EPIDEMIOLOGY.

       (a) In General.--The Director of the Centers for Disease 
     Control and Prevention shall establish a national program of 
     prevention and epidemiology to determine the prevalence of 
     inflammatory bowel disease in the United States, and conduct 
     public and professional awareness activities on inflammatory 
     bowel disease.
       (b) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated $5,000,000 in fiscal year 2003, and such sums as 
     may be necessary for fiscal years 2004 through 2006.

     SEC. 5. STUDY OF INFLAMMATORY BOWEL DISEASE RELATED SERVICES.

       (a) In General.--The Institute of Medicine of the National 
     Academics of Science shall conduct a study on the coverage 
     standards of medicare, medicaid, and the private insurance 
     market for the following therapies:
       (1) Parenteral nutrition.
       (2) Enteral nutrition formula.
       (3) Medically necessary food products.
       (4) Ostomy supplies.
       (5) Therapies approved by the Food and Drug Administration 
     for Crohn's disease and ulcerative colitis.
       (b) Content.--The study shall also take into account the 
     appropriate outpatient or home health care delivery settings.
       (c) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Institute of Medicine shall submit 
     a report to Congress describing the findings of the study.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section, such sums as 
     may be necessary.

     SEC. 6. SOCIAL SECURITY DISABILITY FOR INFLAMMATORY BOWEL 
                   DISEASE PATIENTS.

       (a) In General.--The General Accounting Office shall 
     conduct a study of the problems patients encounter when 
     applying for disability insurance benefits under title II of 
     the Social Security Act. The study will also include 
     recommendations for improving the application process for 
     inflammatory bowel disease patients.
       (b) Report.--Not later than 6 months after the date of 
     enactment of this Act, the General Accounting Office shall 
     submit a report to Congress describing the findings of the 
     study.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section, such sums as 
     may be necessary.
                                 ______
                                 
      By Mr. GRASSLEY (for himself, Mr. Kerry, and Mr. Torricelli):
  S. 2563. A bill to amend the Internal Revenue Code of 1986 and the 
Employee Retirement Income Security Act of 1974 with respect to the 
interest rate range for additional funding requirements, and for other 
purposes; to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, I am today introducing a bill on behalf 
of myself and Senators Kerry and Torricelli, to accomplish two 
objectives related to defined benefit pension plans.
  First, my bill will permit defined benefit plans to use an 
appropriate adjusted interest rate for purposes of calculating 
contributions to their plan due for plan year 2001. We made this change 
in the economic stimulus bill that passed earlier this year for the 
years 2002 and 2003, but failed to pick up the 2001 plan year.
  My colleagues may think that such a change should have been made a 
year ago. Defined benefit pension plan contributions for 2001 are due 
in most cases, 8\1/2\ months after the close of the plan year. By that 
measure, this change is still timely. I would also draw the attention 
of my colleagues to the fact that this adjustment is necessary to 
correct for the very low 30-year Treasury bond rates that have resulted 
from the buy-back and discontinuation of these bonds.
  It is also important to note that this change will not affect the way 
in which pension payouts are made to participants. It will simply 
affect contributions to plans and premiums paid to the Pension Benefit 
Guaranty Corporation by plan sponsors.
  Second, the bill would make permanent a special rule for certain 
interstate bus lines that was put in place in the 1997 tax bill. That 
rule allows interstate bus lines with frozen pension plans to use 
generally applicable

[[Page S4853]]

ERISA funding rules for their plan, rather than those mandated by the 
pension the GATT which were enacted in 1994.
  The change we make for interstate bus lines with frozen defined 
benefit plans is unique to this group. Generally the GATT made useful 
changes to pension law that made plans more secure for participants. 
The use of standardized interest rates and mortality tables has helped 
establish a baseline so that plan sponsors understand our expectations 
of how they must fund their plans.
  I ask unanimous consent that the text of this bill, along with a 
letter of support from the Amalgamated Transit Union, be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2563

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

     SECTION 1. INTEREST RATE RANGE FOR ADDITIONAL FUNDING 
                   REQUIREMENTS.

       (a) In General.--Subclause (III) of section 412(l)(7)(C)(i) 
     of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``2002 or 2003'' in the text and inserting 
     ``2001, 2002, or 2003'', and
       (2) by striking ``2002 and 2003'' in the heading and 
     inserting ``2001, 2002, and 2003''.
       (b) Special Rule.--Subclause (III) of section 
     302(d)(7)(C)(i) of the Employee Retirement Income Security 
     Act of 1974 (29 U.S.C. 1082(d)(7)(C)(i)) is amended--
       (1) by striking ``2002 or 2003'' in the text and inserting 
     ``2001, 2002, or 2003'', and
       (2) by striking ``2002 and 2003'' in the heading and 
     inserting ``2001, 2002, and 2003''.
       (c) PBGC.--Subclause (IV) of section 4006(a)(3)(E)(iii) of 
     such Act (29 U.S.C. 1306(a)(3)(E)(iii)) is amended to read as 
     follows--
       ``(IV) In the case of plan years beginning after December 
     31, 2001, and before January 1, 2004, subclause (II) shall be 
     applied by substituting `100 percent' for `85 percent' and by 
     substituting `115 percent' for `100 percent'. Subclause (III) 
     shall be applied for such years without regard to the 
     preceding sentence. Any reference to this clause or this 
     subparagraph by any other sections or subsections (other than 
     sections 4005, 4010, 4011 and 4043) shall be treated as a 
     reference to this clause or this subparagraph without regard 
     to this subclause.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendments made by 
     section 405 of the Job Creation and Worker Assistance Act of 
     2002.

     SEC. 2. AMENDMENTS TO RETIREMENT PROTECTION ACT OF 1994.

       (a) Transition Rule Made Permanent.--Paragraph (1) of 
     section 769(c) of the Retirement Protection Act of 1994 is 
     amended--
       (1) by striking ``transition'' each place it appears in the 
     heading and the text, and
       (2) by striking ``for any plan year beginning after 1996 
     and before 2010''.
       (b) Special Rules.--Paragraph (2) of section 769(c) of the 
     Retirement Protection Act of 1994 is amended to read as 
     follows:
       ``(2) Special rules.--The rules described in this paragraph 
     are as follows:
       ``(A) For purposes of section 412(l)(9)(A) of the Internal 
     Revenue Code of 1986 and section 302(d)(9)(A) of the Employee 
     Retirement Income Security Act of 1974, the funded current 
     liability percentage for any plan year shall be treated as 
     not less than 90 percent.
       ``(B) For purposes of section 412(m) of the Internal 
     Revenue Code of 1986 and section 302(e) of the Employee 
     Retirement Income Security Act of 1974, the funded current 
     liability percentage for any plan year shall be treated as 
     not less than 100 percent.
       ``(C) For purposes of determining unfunded vested benefits 
     under section 4006(a)(3)(E)(iii) of the Employee Retirement 
     Income Security Act of 1974, the mortality table shall be the 
     mortality table used by the plan.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2001.
                                  ____



                                    Amalgamated Transit Union,

                                      Washington, DC, May 3, 2002.
     Hon. Charles Grassley,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Grassley: On behalf of the Amalgamated Transit 
     Union (ATU), I write to express our support for your proposed 
     Senate bill to apply recent changes made to the Tax Code to 
     the year 2001 and to make permanent the relief for certain 
     interstate bus company pension plans from GATT-mandated 
     funding requirements. (Reference #FRA02.196)
       We believe the relief provided in this bill for interstate 
     bus companies with frozen pension plans, such as Greyhound, 
     is crucial to protect the affected employees' pension rights 
     and ensure the continued vitality of this nationwide 
     transportation system. With respect to the provisions 
     extending the thirty-year Treasury fix to 2001, we certainly 
     understand the need for and also support this provision.
       As you know, ATU represents over 5,000 current Greyhound 
     employees, as well as 13,000 retirees. Greyhound and its 
     drivers serve over 4,000 communities nationwide, most of 
     which have no other form of intercity public transportation. 
     The continuance of these essential public transportation 
     services provided by Greyhound and its drivers, however, is 
     being threatened by federal pension funding requirements that 
     fail to recognize the uniqueness of the ATU-Greyhound pension 
     plan.
       The jointly-administered defined benefit pension plan for 
     Greyhound bus drivers has been frozen to new participants 
     since 1983. The plan has 14,000 participants, all but 1,000 
     of which are retired. As a result, the average age of plan 
     participants is over 70 years, and their mortality rate is 
     far higher than that predicted by the mortality table that 
     current law requires the plan administrator to use in 
     determining funding requirements. Without legislative change, 
     this requirement will force Greyhound to make unnecessary 
     pension contributions with capita that is needed to operate 
     and maintain its vital nationwide transportation system and 
     to address new security threats facing the industry. These 
     changes will benefit our retirees and our active members as 
     well.
       We applaud your leadership in the effort to provide this 
     necessary relief. As this is a top-priority for the ATU, I 
     want to personally thank you for all your efforts in this 
     matter. Please let us know how we can help you as this bill 
     moves forth.
           Sincerely,
                                                       Jim LaSala,
                                          International President.
                                 ______
                                 
      By Mr. KENNEDY (for himself, Mr. Gregg, Mrs. Murray, Mr. 
        Voinovich, Mr. Wellstone, Mr. Bond, Mr. Edwards, Mr. Stevens 
        and Mr. DeWine):
  S. 2566. A bill to improve early learning opportunities and promote 
school preparedness, and for other purposes; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. KENNEDY. Mr. President, it is a privilege to join my fellow 
Senators today to introduce the Early Care and Education Act. I commend 
my colleagues for their commitment and leadership on this issue of 
national priority, Senator Judd Gregg, the ranking member of the 
H.E.L.P. Committee with whom I am proud to share leadership with on 
this issue; Senator Patty Murray, a former early educator herself who 
brings to the H.E.L.P. Committee a depth of knowledge from the front 
lines of education in our country; Senator George Voinovich for his 
leadership through the Families and Children First initiative as 
Governor of Ohio and his long-standing commitment to this issue; 
Senator Paul Wellstone, who continues to show support for parent and 
family education, and has demonstrated impressive results with the care 
of infants in Minnesota; Senator Ted Stevens, who has a long commitment 
to children and championed the Early Learning Opportunities Act; 
Senator John Edwards, whose dedication to the interests of children 
with special needs is greatly appreciated; and Senator Chris Bond, for 
his innovation with the Parents as Teachers program in Missouri.
  Today, in America, there are over 19 million children under age 5, 
and over 11 million of these children have parents who work. Sixty-two 
percent of children from birth to age 5 spend time cared for by someone 
other than their parents, and too many are spending increasing hours in 
a hodge-podge of programs, in a variety of settings, cared for and 
taught by sometimes unqualified and certainly under-compensated 
providers. As a result, almost half of our Nation's children start 
school unprepared for the challenges before them. This result is costly 
for our parents, our teachers and providers, and most importantly, for 
our children.
  The Early Care and Education Act that we introduce today is based on 
decades of science and research that show that what parents and 
providers do for young children during their earliest years will impact 
school performance and later success in life. This bill will build upon 
current Federal, State, and local efforts to address the early care and 
education needs of young children. And, it will promote school 
readiness by creating a system of early care and early education that 
includes quality services and programs staffed by an educated, 
motivated, and stable workforce that is paid in accordance to their 
very important responsibilities as the earliest educators of our 
children.
  During the first five years of life, our children have a number of 
experiences that have strong influence on their social, emotional, and 
cognitive development. Together, these early encounters set the stage 
for later learning and performance. This has been confirmed by research 
and life experience. Based on this knowledge, we must give the same

[[Page S4854]]

high priority and commitment to early education that we devote to the 
elementary, secondary, and college levels. Education is a continuum 
that begins at birth, and we must invest in our children from the 
beginning if we expect the best for them and from them. this means an 
investment in their parents, caregivers, and teachers as well.
  To ensure that children enter school prepared to learn, we must 
coordinate and improve the quality of services children and families 
receive, eliminate duplication, and maximize the use of existing 
federal and state resources. The Early Care and Education Act will 
accomplish this by providing incentive grants so that states may: Offer 
education, training, and professional development opportunities to 
improve the skills and compensation of the early care and education 
workforce; conduct needs assessments and evaluations of State and local 
programs and services for young children; provide training and 
technical assistance to help health care providers conduct analyses of 
child development as a part of routine physical examinations; improve 
parent, provider and public awareness of the early childhood 
development activities that will help children reach social, emotional, 
and cognitive milestones, and; support voluntary parent and family 
education programs that address early literacy, school preparedness, 
and overall development growth.

  These activities I've just described have been demonstrated in 
research and practice to address the social, emotional, physical, and 
cognitive development needs that simultaneously influence a child's 
ability and willingness to learn.
  I bring the Early Education and Care Act to the floor today with a 
strong voice. My fellow Americans, parents, and providers have placed 
education, and specifically, early education, as a top national 
priority. Study after study has called for better access and quality 
for early education. And, in the past few months alone, numerous 
reports have accurately described the shortcomings of early care and 
education in our country, as well as the need to respond. We began to 
identify solutions years ago with Perry Preschool and the Carolina 
Abecedarian Project. These proven solutions have been more recently 
demonstrated in programs like the Chicago Child-Parent Center program 
and described in publications, such as Eager to Learn and From Neurons 
to Neighborhoods. After years of research articulating the need, and 
years of intervention showing us what works, we can no longer afford to 
ignore these calls to action.
  I have long-been committed to the education and welfare of children 
in this country. They are who will keep the greatness and prosperity of 
this nation going in the years to come. The first few months of 2002 
have already created some dynamic changes for our young citizens. In 
January, I joined President Bush as he signed the Elementary and 
Secondary Education Act, ESEA, into law. This display of bipartisan 
commitment paved the road for future collaboration on other areas much 
in need of attention and commitment, including quality early care and 
education.
  Since then, the President has stated his commitment to school 
readiness with the Administration's announcement of the ``Good Start, 
Grow Smart'' initiative, and the First Lady has repeatedly expressed 
her dedication to this issue by testifying before the Senate Education 
Committee, at White House events, and at engagements across the 
country, including the second annual early childhood education summit 
earlier this month in Little Rock, Arkansas.
  Today, I sand with the President, the First Lady, and America's 
parents, providers, and teachers to call for quality early care and 
education for our nation's youngest children. The public and policy 
makers agree on its importance, and we now have the opportunity--and 
obligation--to act.
  Investing in our children early is not an option. It is our 
responsibility as a nation. With stronger K-12 student requirements 
through ESEA, we cannot fairly hold our children accountable for poor 
performance later in school if we don't give them the best 
opportunities at success from the start. We must narrow the gap between 
what we know and what we do. The Early Care and Education Act will help 
us to narrow that gap.
  As I close, I would like to recognize the many researchers, 
practitioners, and advocates who have contributed their expertise and 
practical insight as we crafted this legislation. I ask unanimous 
consent a multitude of letters and other material we have received in 
support of this legislation be printed in the Record. The Nation is 
behind this effort, and I hope that my colleagues will join us in 
supporting and passing this very important legislation.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

              Support for the Early Care and Education Act


                                Experts

       Jack Shonkoff, Brandeis University.
       Craig Ramey, Georgetown University.
       Ed Zigler, Yale University.
       Dorothy Strickland, Rutgers University.
       Barry Zuckerman, Boston Medical.


                         National Organizations

       American Academy of Pediatrics.
       Child Care Action Campaign.
       Child Care Consortium.
       National Child Care Assocation.
       Scholastic Inc.
       National Association of Child Care Resource and Referral 
     Agencies.
       I am Your Child Foundation.
       Committee for Economic Development.
       High Scope Foundation.
       Reading is Fundamental.
       United Way of America.
       Fight Crime Invest in Kids.
       Parents as Teachers.


                   National Government Organizations

       National Governors Association.
       National League of Cities.
       National Conference of Mayors.
       National Conference of State Legislators.


                         Massachusetts & States

       Massachusetts Dept. of Education.
       Massachusetts Early Education for All.
       Massachusetts Association of Child Care Resource and 
     Referral Agencies.
       North Carolina Smart Start.
       First Steps South Carolina.
       Washington State Child Care Resource and Referral Agencies.
       Maryland Office for Children.
                                  ____



                               American Academy of Pediatrics,

                                     Washington, DC, May 23, 2002.
     Hon. Edward M. Kennedy,
     U.S. Senate,
     Washington, DC
       Dear Senator Kennedy: On behalf of the 57,000 members of 
     the American Academy of Pediatrics, I write to express our 
     strong support for your legislation, the Early Care and 
     Education Act.
       Pediatricians have long recognized that high-quality early 
     care and education requires the combined efforts of many 
     people--parents, caregivers, medical providers, community 
     organizations, and government leaders of all levels. Your 
     legislation recognizes the important nexus between quality 
     health care and quality education for children by ensuring 
     that all early care and education initiatives are grounded on 
     the best research, standards and teaching strategies 
     available. Moreover, by including pediatricians on the panel 
     of experts to provide guidance and assistance to states, your 
     legislation will ensure that all children can benefit from 
     the medical expertise of those most familiar with the health 
     and development of infants, children, adolescents and young 
     adults.
       We applaud your continued commitment to the health, 
     development and education of children. We would welcome the 
     opportunity to work with you as this important legislation 
     moves forward this year. Please contact me or Molly Hicks, 
     Assistant Director, Department of Federal Affairs, if we can 
     be of any assistance.
           Sincerely,
                                               Elizabeth J. Noyes,
     Associate Executive Director.
                                  ____

         National Association of Child Care Resource and Referral 
           Agencies,
                                     Washington, DC, May 20, 2002.
     Hon. Edward M. Kennedy,
     U.S. Senate,
     Washington, DC.
       Dear Senator Kennedy: We are writing on behalf of the 
     National Association of Child Care Resource and Referral 
     Agencies (NACCRRA) to commend you on the goals and purposes 
     of the Early Care and Education Act.
       Child care resource and referral has played a significant 
     role in assisting States in many different system-building 
     efforts. Therefore, we are pleased that your legislation 
     encourages States to think and plan comprehensively how best 
     to improve the quality of early experiences for children by 
     addressing such systemic needs as professional development, 
     compensation, program guidelines, information and support for 
     parents, as well as public awareness.
       We see the concept of a unified, seamless plan which 
     coordinates the State's various federal funding streams as an 
     important indicator that the activities in this Act are 
     intended to provide a robust complement to the quality-
     enhancing activities currently

[[Page S4855]]

     funded by the Child Care and Development Block Grant (CCDBG), 
     which we are hoping will also be increased significantly 
     during this year's reauthorization.
       As coordinators of the fragile and fragmented local early 
     care and education configurations, child care resource and 
     referral programs applaud the intentionality and systemic 
     planning that the Act promotes. The ability of a State's 
     governor to designate an existing entity as the advisory 
     council and the intent to enhance the effectiveness of 
     existing delivery systems are both critical elements to us. 
     We heartily support leveraging new opportunities but strongly 
     oppose the waste created by the unnecessary creation of new, 
     parallel systems and duplication of functions.
       In the section on State Plans, we appreciate the 
     recognition of community based training that is not provided 
     for course credit as an essential part of the professional 
     development continuum. These trainings are often the bridge 
     to educational success for countless caregivers. Without 
     these trainings, many would not have the confidence to enter 
     the higher education environment.
       The language regarding the implementation of the public 
     awareness and parental information campaigns is particularly 
     intriguing, because this has been a core function of resource 
     and referral since long before any significant public 
     resources became available for this purpose.
       We promise to continue working with you to ensure that the 
     bill is a success. Thank you for your unwavering commitment 
     to the children and their families all across our great 
     nation.
           Sincerely,
     Marta Rosa,
       President, NACCRRA Board of Directors.
     Yasmina Vinci,
       Executive Director.
                                  ____

                                                      May 9, 2002.
     Hon. Edward M. Kennedy,
     Chairman, Senate Committee on Health, Education, Labor and 
         Pensions, Senate Dirksen Building, Washington, DC.
     Hon. Judd Gregg,
     Ranking Member, Senate Committee on Health, Education, Labor, 
         Senate Dirksen Building, Washington, DC.
       Dear Chairman Kennedy and Senator Gregg: Scholastic Inc. 
     writes in enthusiastic support of the Early Care and 
     Education Act, and we share your goal to ensure that our 
     youngest children reach school ready to learn. We first want 
     to applaud your tremendous recent efforts on elementary and 
     secondary education and the Leave No Child Behind Act. This 
     Act will have an enormous impact on the lives and education 
     of our children and the quality of teaching across the 
     country. We hope that bipartisanship in the Congress, and 
     with the Bush Administration, on funding for education and 
     children will continue with the same energy and focus on 
     preschool and early education. In this present effort 
     Scholastic extends its full support and resources to you and 
     your staff to help reach parents, children, and early 
     educators on the importance of early childhood issues.
       Scholastic Inc., the global children's publishing and media 
     company, throughout its history has had a corporate mission 
     of instilling the love of reading and learning in all 
     children. Recognizing that literacy is the cornerstone of a 
     child's intellectual, personal, and cultural growth, 
     Scholastic has created quality products to educate, entertain 
     and motivate children. We have long understood the importance 
     of focusing on the needs of the whole child during early 
     childhood and we know that what we do for our children in 
     their earliest formative years, sets the foundation for 
     success or failure in school and in life. This legislation 
     has the potential to better prepare the next generation of 
     children to be ready to learn when they enter school.
       We strongly agree that one of keys to promoting school 
     readiness is to develop and retain a well-educated and 
     trained early childhood workforce. Scholastic has focused on 
     the area of professional development for early childhood 
     teachers and caregivers and has been a pioneer in developing 
     scientifically based early childhood instructional materials, 
     including education technology.
       Scholastic offers its services and resources to be part of 
     the legislation's public/private campaign for early childhood 
     and early literacy. Scholastic's magazines, Early Childhood 
     today and Parent & Child, book clubs, and web site reach 
     millions of teachers and parents across the country. 
     Additionally, Scholastic works with libraries and literacy 
     programs across the country. We would like to leverage these 
     unique relationships and communication channels to deliver 
     your message.
       Thank you again for your leadership on issues of importance 
     to children and families.
           Very truly yours,
     Richard Robinson.
                                  ____

                                        New York, NY, May 8, 2002.
     Senator Edward M. Kennedy,
     Chairman, U.S. Senate Committee on Health, Education, Labor 
         and Pensions, Dirksen Senate Office Building, Washington, 
         DC.
       Dear Senator Kennedy: We at Child Care Action Campaign 
     write to express our support for The Early Care and Education 
     Act that we understand you plan to introduce in the Senate 
     later this week.
       We do so with unreserved support for the bill's three 
     stated purposes: to encourage States to improve the quality 
     and availability of early learning opportunities and 
     activities for young children; to develop and retain a well-
     educated and trained early childhood workforce and to promote 
     school preparedness. All of these are necessary if we are to 
     assure that our nation's children will have the social, 
     emotional and behavioral skills necessary to enter and 
     succeed in school. And, that they will bring with them to the 
     schoolhouse door the appropriate level of early cognitive and 
     literacy development to support success in reading and other 
     academic requirements.
       For the past nearly twenty years, Child Care Action 
     Campaign has had as its vision: quality, affordable child 
     care for every American family that needs it. In pursuing 
     this vision we have helped to build national public awareness 
     and support for improved early education. To take the next 
     giant steps, however, requires more than advocacy and public 
     education. It will require significant investment by the 
     Federal government and the States. It will also demand the 
     use of effective strategies to improve the training and 
     compensation of the early childhood workforce, the ultimate 
     source of quality in our nation's preschool classrooms.
       The level of investment proposed in your bill, combined 
     with the strong signal it sends abut the importance of early 
     care and education for our nation's youngest citizens, is a 
     critical next step. We are particularly pleased that, under 
     Sec. 9, Use of Funds, the very first use listed is the one we 
     see as the key to the changes that must be made for our 
     children--that is, to encourage states to use funds under 
     this Act for education, training and professional development 
     for early childhood professionals, including training that is 
     linked to increased compensation.
       We are also encouraged that you plan to establish an 
     independent panel of experts to provide guidance to the 
     States in the important task of assessing progress and that 
     this panel will identify for States' use the best science-
     based methods and measures.
       We look forward to continuing to work with your staff to 
     achieve effective implementation. Thank you for what you 
     personally have done to put your considerable passion and 
     credibility to the service of the nation's children.
           Sincerely,
                                                       Faith Wohl,
     President.
                                  ____

         Smart Start and the North Carolina Partnership for 
           Children,
                                                      May 9, 2002.
     Senator Edward Kennedy,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senator Kennedy: On behalf of the North Carolina 
     Partnership for children and Smart Start, thank you for your 
     exemplary support of young children as reflected in your 
     recently proposed legislation. We applaud your outstanding 
     leadership and believe that this legislation will 
     dramatically improve the early care and education system in 
     our state and throughout the nation.
       Thank you for your willingness to listen and learn from the 
     pioneer work we have done since the Smart Start legislation 
     was passed in 1993 as reflected in your visit here and 
     ongoing communication with your staff. While North Carolina 
     has made unparalleled progress in building a high quality 
     early childhood system and getting results for young 
     children, we have much further to go. With your continued 
     leadership and support we will reach our goal that every 
     child in our state arrives at school healthy and prepared for 
     success in school and in life.
       Thank you for your dedication and the commitment you made 
     in proposing this landmark legislation. We look forward to 
     working with you on behalf of children. Please continue to be 
     our nation's champion for young children.
           Sincerely yours,
                                                  Karen W. Ponder,
     Executive Director.
                                  ____

                                                     May 14, 2002.
     Hon. Edward M. Kennedy, Chair,
     Hon. Judd Gregg, Ranking Member,
     U.S. Senate Committee on Health, Education and Pensions, 
         Dirksen Senate Office Building, Washington, DC.
       Dear Senators Kennedy and Gregg: Thank you for your work to 
     produce the ``Early Care and Education Act''. This letter is 
     to communicate the Parents as Teachers National Center's 
     (PATNC) support for the Act.
       There is sound evidence that the first few years of life 
     are the most critical to the healthy social, cognitive, 
     language, and physical development which propels children to 
     success in school and in their lives as adults. Most children 
     spend those early years in the care of their parents, who are 
     their first and most influential teachers, but also with 
     other care providers. The Early Care and Education Act is a 
     realistic attempt to strengthen the capacity of both parents 
     and care providers to promote school readiness by a unified 
     approach of encouraging highly interactive, developmentally 
     appropriate opportunities for very young children to learn 
     and strengthening the quality of the early childhood 
     workplace.
       Along with other positive provisions of the Early Care and 
     Education Act, we are particularly pleased that there is 
     recognition of the various systems and entities involved in 
     providing services to young children and

[[Page S4856]]

     their families and the need to unite these players in common 
     goals and in transition to the school systems which will take 
     over as children grow older. The proposed Joint Office of 
     Early Care and Education at the federal level and similar 
     structures at the state level will model this recognition and 
     create a means to bring it to fruition.
       Again, we are most grateful for the intent of the Early 
     Care and Education Act and the positive focus it will provide 
     on the needs of our youngest and most vulnerable citizens to 
     be ready to succeed in school and in life.
           Most sincerely,
                                               Susan S. Stepleton,
     President and CEO.
                                  ____

                                            Committee for Economic


                                                  Development,

                                     Washington, DC, May 14, 2002.
     Hon. Edward M. Kennedy,
      U.S. Senate, Russell Senate Office Building, Washington, DC.
     Hon. Judd Gregg,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senators: On behalf of the Committee for Economic 
     Development (CED), I would like to commend you on your 
     ``Early Care and Education Act.'' CED strongly supports the 
     goal of providing increased early learning opportunities to 
     all children.
       As a nonprofit, non-partisan public policy organization 
     comprised of over 200 business and education leaders, CED has 
     long promoted the economic benefits of improving the 
     education of our nation's youth. CED identified early 
     childhood education as particularly crucial in our 1993 
     study, Why Childcare Matters and our recent policy statement, 
     Preschool for All: Investing In a Productive and Just 
     Society. We wholeheartedly agree with your findings that the 
     pre-kindergarten period is a critical juncture when young 
     children develop cognitively and socially, and therefore 
     benefit substantially from mental stimulation and education. 
     CED supports the goal of the legislation to facilitate 
     cooperation between federal and state governments in creating 
     high-quality and childcare and education systems that ensure 
     that all children enter school ready to learn.
       Promoting school preparedness among children is vital to 
     their future success and benefits society as a whole. In 
     order to accomplish this goal, a stable, well-educated, and 
     appropriately paid childcare and early education workforce is 
     necessary, with ample opportunities for professional 
     development and training. Increased research and 
     dissemination of best practices from among successful 
     programs is also essential. We are pleased that the 
     legislation includes provisions for addressing these 
     requirements.
       CED believes that it is imperative that the current 
     haphazard, piecemeal, and under-funded approach to early care 
     and learning in this country be replaced by coherent state-
     based systems linking programs and providers, with the goal 
     being universal access to high-quality prekindergarten 
     programs for all children whose parents want them to 
     participate. Your legislation represents a step in the right 
     direction and we support your efforts.
           Sincerely,
                                                Charles E.M. Kolb,
     President.
                                  ____

         California Children and Families Commission and I Am Your 
           Child Foundation,
                                  Beverly Hills, CA, May 14, 2002.
     Senator Edward M. Kennedy,
     Chairman, Committee on Health, Education, Labor, and 
         Pensions, U.S. Senate, Washington, DC.
       Dear Senator Kennedy: I am writing to express my support 
     for the Early Care and Education Act that you plan to 
     introduce this week. I commend you, the Bill's co-sponsors, 
     and your colleagues for taking this important step to benefit 
     our nation's youngest citizens and to help provide all 
     children with the support, care, and tools they need to enter 
     school ready to succeed.
       Based on my experiences as Chairman of the California 
     Children and Families Commission, as President and Founder of 
     the I Am Your Child Foundation, and as a parent of three 
     young children, I can assure you that increased public 
     investment in early childhood development, parenting, and 
     child care pays off. Investments in the early years yield 
     dividends that last a lifetime: children who are nurtured and 
     taught by caring and capable caregivers, both inside and 
     outside the home, are more likely to enter school ready to 
     succeed, and are ultimately more likely to enter our 
     communities as productive, healthy, and engaged citizens.
       Indeed, in recent years, developments in science and public 
     policy have confirmed what many of us as parents and 
     caregivers have long known instinctively; the experiences of 
     children in their earliest years have a profound effect on 
     the way children grow and develop, and they establish the 
     foundation for future success both in school and in life. We 
     now know, without doubt, that secure and loving attachments 
     with parents and other caregivers, coupled with the right 
     kind of developmental experiences, instill in children the 
     social, emotional and cognitive abilities they need to 
     thrive.
       Quite simply, there is no more significant public 
     investment we can make in our nation's future than in early 
     childhood development, and that is the main focus of the new 
     Early Care and Education Act. Many facts of the Bill are 
     deserving of praise, but I would like to focus on those 
     features that I believe will make the largest difference in 
     the lives of our nation's youngest children:
       First, the Bill recognizes that parents are our children's 
     first teachers, and offers ground-breaking support for 
     initiatives that promote parent education and provide 
     information to parents on child development and age-
     appropriate activities that improve children's social, 
     emotional, cognitive and physical development. The Bill also 
     enables States to conduct public education campaigns to 
     increase public awareness of early childhood development and 
     specific activities that can help children reach social, 
     emotional, and cognitive milestones critical to school 
     readiness. From what I have seen in States across the 
     country, from California to Pennsylvania, parent education 
     and public awareness efforts can make a tremendous difference 
     in the lives of young children. The more reliable and 
     responsible child development information the public, 
     particularly parents, receive, the better caregivers parents 
     become.
       Second, the Bill recognizes the need for significant 
     investment in workforce development that is linked to 
     increased compensation, improved recruitment and retention, 
     and stable career ladders for early childcare workers. If we 
     truly believe in investing in our children, we must make 
     meaningful investments in those entrusted with their care. We 
     must strengthen the knowledge and skills of those who teach 
     and care for our youngest children, and that can only happen 
     by increasing training, skills, and wages.
       Third, the Bill recognizes that early childhood education 
     must be part of the overall K-12 education system. I am 
     extremely pleased to see that both the Departments of 
     Education and Health and Human Services will play a role in 
     administering the act, and that States' plans will include a 
     description of how States will create linkages between formal 
     early care and early education programs and elementary 
     education programs to ensure a smooth transition from 
     preschool to elementary school. In addition, I am delighted 
     that the State Advisory Councils, charged with conducting 
     local needs assessments and developing State plans, will 
     include a wide array of individuals involved in early, 
     elementary, and higher education--from parents to early 
     childhood education professionals, to kindergarten teachers, 
     to teachers in grades 1 through 4, to representatives from 
     institutions of higher learning. This linkage is critical to 
     creating a seamless system of education for our children from 
     birth through grade 12.
       Fourth, the Bill recognizes that investments in early 
     childhood development should not focus on literally alone, 
     but must encompass the full developmental spectrum, including 
     cognitive, social, emotional and physical development 
     beginning at birth. This critical points is understood by the 
     multi-disciplinary approach the Bill embraces in composing 
     State Advisory Councils. In addition, the Bill highlights the 
     multi-dimensional development needs of our children who are 
     most at-risk, and bolsters investment in children living in 
     poverty, for whom early care, education, and intervention are 
     especially crucial.
       Finally, the Bill goes a long way in addressing the problem 
     of linking public funding to assessments of children's school 
     readiness. While the bonus grant provisions of the Bill may 
     be controversial, they do not represent the type of 
     ``child testing'' that I believe is most problematic. As 
     the Bill provides, only 20 percent of funding may be used 
     as bonuses linked to assessment, the assessment tools will 
     be developed over time by independent experts, and the 
     assessments themselves will be limited to kindergarten 
     children (not preschoolers). Moreover, the assessment 
     results may not be used to identify or track children or 
     to determine kindergarten eligibility or retention. In 
     addition, under the Bill, no bonus grants are to be 
     awarded until the third year, which allows time for system 
     building and workforce development, and the third year 
     bonuses are based solely on evidence of increased 
     workforce capacity and retention.
       In sum, I strongly believe the Early Care and Education Act 
     will make significant strides in the care and education of 
     our nation's youngest children. Increased public investment 
     in child development is critical for our children and for our 
     country. I commend you for your strong leadership on this 
     issue and your tireless work on behalf of the children of 
     America. I am proud to offer you my support.
           Sincerely,
     Rob Reiner.
                                  ____

                                                  Yale University,


                                     Department of Psychology,

                                      New Haven, Ct, May 10, 2002.
     Senator Edward M. Kennedy,
     U.S. Senate, Russell Office Building, Washington, DC.
       Dear Senator Kennedy: I would like to voice my strong 
     support for the Early Care and Education Act. As the Sterling 
     Professor of Psychology at Yale University and head of the 
     Psychology Section of the Yale Child Study Center, I direct 
     the Bush Center in Child Development and Social Policy. As 
     someone who has studied the growth and development of 
     children for over 45 years, I believe this legislation will 
     further efforts to improve the lives and early experiences 
     for our nation's youngest children. As I noted in my 
     testimony before the Senate Health, Education, Labor, and 
     Pensions Committee earlier this spring, the quality of early 
     care and education provided to most children in this nation 
     is poor to mediocre. Millions of

[[Page S4857]]

     infants and toddlers--at the very ages when development is so 
     critical--are spending their days in the care of untrained 
     and poorly compensated teachers.
       The Early Care and Education Act focuses on the two biggest 
     issues confronting the field of early education--the lack of 
     an organized and systematic approach to early care and 
     education, and the lack of trained and well compensated 
     teachers. We must address these issues to ensure that all 
     children arrive at our schools prepared to learn. If we want 
     sound educational programs, we simply must provide well-
     trained teachers to implement them.
       I compliment you on the comprehensive nature of the bill. 
     While I wholeheartedly agree that congnitive development and 
     literacy are important goals, I have repeatedly pointed out 
     that they are so interwined with the physical, social and 
     emotional systems that it is futile to dwell on the intellect 
     and exclude the other domains of development. Your bill 
     supports the whole child concept and I applaud you for this 
     approach. Decades of cumulative research shows that early 
     emotional risk factors that go unaddressed, will result in 
     later school failure, poor peer relationships, and later 
     costly interventions. Phonemic instruction by the most 
     competent teacher will do little for a child whose physical, 
     emotional and social needs have not been met. The best way to 
     promote the healthy development of children is to help the 
     adults in their lives be more effective in responding to 
     their needs.
       I commend you for continuing to leadership on behalf of 
     children. Please do not hestitate to contact me if I can be 
     helpful in your efforts.
           Cordially,
                                                    Edward Zigler,
     Sterling Professor of Psychology.
                                  ____



                                 Reading Is Fundamental, Inc.,

                                     Washington, DC, May 13, 2002.
     Hon. Edward M. Kennedy,
     Chairman, Committee on Health, Education, Labor and Pensions, 
         Dirksen Senate Office Building, Washington, DC.
       Dear Mr. Chairman: Reading Is Fundamental, Inc. (RIF) is 
     pleased to support the bipartisan Early Care and Education 
     Act, with its laudable emphasis on the creation of strong 
     support systems and educational resources to help ensure that 
     all children, especially those most at-risk for educational 
     failure, receive literacy services at the earliest possible 
     ages.
       RIF shares with you the conviction that the social, 
     academic and cognitive development of America's children 
     depends in large measure on the degree to which they 
     experience nurturing environments during the first six years 
     of life. It is vitally important that families and caregivers 
     receive the resources, information and motivation necessary 
     to prepare children to be successful, life-long learners and 
     readers. RIF believes that this legislation can play an 
     important role in shaping a national approach to more 
     effective childcare and early childhood education.
       One of the strengths of this legislation is its recognition 
     of the variety of settings in which our youngest children are 
     cared for. This comprehensive approach, acknowledging both 
     care in the home and outside the home, has long been a part 
     of RIF's programmatic activity. For example, RIF has 
     developed a training program for childcare providers called 
     Care To Read, which provides instruction on ways to integrate 
     emergent literacy development into a variety of childcare 
     settings. This program is based on research such as the 
     National Reading Panel's report on Preventing Reading 
     Difficulties In Young Children and Dr. Susan B. Neuman's 
     study, Access For All. The growing research regarding 
     emergent literacy support and reading readiness confirms the 
     need to accelerate and broaden efforts to include literacy 
     activities in all child care settings, including those that 
     have not traditionally offered it. The critical need to train 
     child care workers to offer literacy activities is reflected 
     in the legislation and is fully supported by RIF.
       Also consistent with the legislation's goals, RIF, through 
     RIFNet, our distance learning initiative, is developing a 
     six-part video and online training program on emergent 
     literacy issues for early-childhood caregivers, teachers, 
     parents and other important adult influences in children's 
     lives. A companion series on developmentally appropriate 
     children's literature will support this effort to bolster 
     early-childhood literacy development nationwide.
       Without doubt, this is a critical time in our nation's 
     history, when 38 percent of fourth-graders read below grade 
     level, including 58 percent of Hispanic and 63 percent of 
     African-American children. RIF looks forward to working 
     closely with the Department of Education, members of 
     Congress, and communities across the nation to ensure that 
     the youngest Americans have access to books and that 
     essential literacy services are available in all settings, 
     both formal and informal, where young children are cared for.
       We support your efforts to enact this important legislation 
     and thank you for your steadfast support of children's 
     education and health issues. RIF, with its network of 400,000 
     volunteers at 20,000 sites across the country, it prepared to 
     be an active resource in support of this effort.
           Sincerely,
                                                   Carol H. Rasco,
     President and CEO.
                                  ____

                                                Rutgers University


                                 Graduate School of Education,

                                   New Brunswick, NJ, May 9, 2002.
     Re: Early Care and Education Bill.

       To Senator Edward M. Kennedy: I am writing to you and to 
     Senator Judd Gregg to state my endorsement of the Early Care 
     and Education bill. It promises to be a significant step 
     forward in improving the coordination of early childhood 
     efforts at the state level and in strengthening curricula to 
     foster children's overall development with specific attention 
     to their cognitive and language growth. Perhaps most 
     important, it provides the momentum to assist states in their 
     efforts to improve the qualify of early childhood staff.
       I am pleased to have had the opportunity to testify on 
     behalf of this legislation and to participate in the 
     preparation of its drafts. If I can be of further help, I can 
     be reached at the locations listed in the letterhead.
     Dorothy S. Strickland.
                                  ____



                                   Child Care Resource Center,

                                       Cambridge, MA, May 9, 2002.
     Hon. Edward M. Kennedy,
     Russell Senate Office Building,
     Washington, DC.
       Dear Senator Kennedy: As Executive Director of Child Care 
     Resource Center, Inc. (CCRC), one of 15 state contracted 
     child care resource and referral agencies in Massachusetts, I 
     would like to commend you on the goals and purposes of the 
     Early Care and Education Act.
       The Child Care Resource Center has actively participated in 
     assisting many different system-building efforts in the 
     Commonwealth. Therefore, I am pleased that your legislation 
     encourages states to think and plan comprehensively about 
     improving the quality of early care and education by 
     addressing such systemic needs as: professional development, 
     compensation, program guidelines, information and support for 
     parents, and promoting public awareness campaigns. I am also 
     pleased about the fact that the Act offers a state's governor 
     the ability to designate an existing entity as the advisory 
     council and the focus on enhancing the effectiveness of 
     existing delivery systems--both are critical elements because 
     they will inhibit duplication of services.
       By advancing the concept of a unified, seamless plan that 
     coordinates the federal funding that a state receives from 
     various sources, the Act is working to provide a robust 
     complement to the quality-enhancing activities currently 
     funded by the Child Care and Development Block Grant (CCDBG), 
     which I and other child care advocates in Massachusetts are 
     working to ensure is increased significantly during this 
     year's reauthorization.
       In the section on State Plans, I appreciate the recognition 
     of community-based training that is not provided for course 
     credit as an essential part of the professional development 
     continuum. Community-based trainings are often the bridge to 
     educational success for countless caregivers. Without these 
     trainings, many would not have the confidence to enter the 
     higher education environment. The language regarding the 
     implementation of the public awareness and parent-focused 
     information campaigns is particularly intriguing, because 
     this has been a core function of resource and referral since 
     long before any significant public resources became available 
     for this purpose.
       I will continue working with you to ensure that the bill is 
     a success. Thank you for your commitment and dedication to 
     ensuring that quality services are available to the children 
     and their families all across our great nation.
           Sincerely,
                                                    Marta T. Rosa,
     Executive Director.
                                  ____



                                        Child Care Consortium,

                                      Washington, DC, May 9, 2002.
     Hon. Ted Kennedy and Judd Gregg,
     U.S. Senate,
     Washington, DC.
       Dear Senators Kennedy and Gregg: On behalf of the licensed, 
     private providers of quality early childhood education, 
     members of the Child Care Consortium and the National Child 
     Care Association, I am writing to commend your efforts to 
     build a strong early childhood education system with the 
     development of the Early Care and Education Act. The Child 
     Care Consortium encourages you to continue seeking ways to 
     create a framework for a strong system of quality care and 
     education, one that leverages and complements the existing 
     child care delivery system.
       The Early Care and Education Act recognizes that a 
     disciplined approach for building resources and quality goals 
     around a fully funded child care system is important. This 
     includes aligning the preschool learning experience with 
     kindergarten and elementary grade expectations, undertaking 
     meaningful needs assessments, which should include an 
     analysis of capacities and capabilities of existing system 
     resources, and a strong workforce development plan, which 
     must include both training, appropriate to the field, and 
     compensation, competitive in local markets. This also 
     includes providing quality guidelines for parents and 
     creating measurable goals for state efforts. The Child Care 
     Consortium also supports the establishment of a Joint Office 
     of Early Care and Education and full involvement of 
     stakeholders in state Advisory Councils to assist states with 
     identifying needs and developing state plans. Finally, we 
     strongly recommend that states be

[[Page S4858]]

     encouraged to develop a single, unified Early Care and 
     Education/CCDBG plan.
       A framework for driving quality will help ensure that 
     program expenditures in fact enhance quality. Many states 
     have used their quality dollars well and some initiatives 
     have served as models for other states. We think your 
     approach to creating a strong framework for quality is 
     particularly important to ensure that every dollar not used 
     for providing direct assistance to families or creating 
     deeper subsidies through meaningful levels of reimbursements, 
     show real results for quality early childhood education and 
     development.
       Licensed private providers of early childhood education are 
     an essential part of the delivery of quality child care and 
     education opportunities for communities across the nation. 
     Important to our ability to offer quality programming are 
     resources for elements of quality such as professional 
     development and training, effective recruitment and 
     retention, and competitive teacher compensation. The system 
     elements authorized by the Early Care and Education Act will 
     help. Also important for driving quality are adequate funding 
     for child care assistance that will allow families to 
     purchase high quality care and education and reimbursement 
     rates that compensate providers for the full cost of 
     providing quality programming represent, allowing providers 
     to make greater investments in these elements of quality.
           Sincerely,
                                                      Frank Moore,
     Government Relations Counsel.
                                  ____



                                                  First Steps,

                                        Columbia, SC, May 9, 2002.
     Senator Edward M. Kennedy,
     Dirksen Senate Office Building, Washington, DC.
       Dear Senator Kennedy: I am writing in strong support of the 
     Early Care and Education bill that you are proposing, which I 
     have had the opportunity to review this week. As the Director 
     of South Carolina's early childhood initiative, South 
     Carolina First Steps to School Readiness, I feel that this 
     bill directly complements our efforts to ensure that all 
     South Carolina children arrive at first grade ready to 
     succeed in school.
       This bill, if enacted, would directly build on and support 
     the cross-agency collaboratives we have developed at both the 
     state and county levels. As you know, to achieve school 
     readiness requires a holistic approach to all the domains 
     that affect a child's readiness--cognitive, social and 
     developmental. This bill clearly recognizes the need to 
     support all of those domains.
       I am also pleased with the bill's focus on training for 
     early childhood professionals and the inclusion of funding 
     for public awareness. We have undertaken both of those 
     initiatives in South Carolina, but limited funds have 
     restricted the scope of what we are able to do at present. We 
     would welcome the opportunity to expand our efforts if this 
     bill is enacted.
       If you have any questions about our efforts in South 
     Carolina, please do not hestitate to contact me. I may be 
     reached at 803-734-0391. Thank you for your leadership in 
     developing this bill.
           Sincerely,
                                            Marie-Louise Ramsdale,
     Director.
                                  ____


       Statement of Support for the Early Care and Education Act

                      (By Jack P. Shonkoff, M.D.)

       I am happy to convey my strong support for the proposed 
     Early Care and Education Act. This support is based on the 
     extent to which the bill is informed by the science of early 
     childhood development, as well as on my 20 years of 
     experience as a pediatrician deeply engaged in the delivery 
     of a wide range of services for young children ``on the 
     ground.''
       Among the many features of the proposed legislation, the 
     following are particularly important and worthy of broad and 
     enthusiastic endorsement:
       First, the bill addresses the most pressing challenge 
     facing all early childhood programs--the need for significant 
     investment in staff education and training that is linked to 
     increased compensation, improved recruitment and retention, 
     and a career ladder. Stated simply, in order to close the gap 
     between what we know and what we do to support parents and 
     promote healthy child development, we must strengthen the 
     knowledge and skills of those who provide early care and 
     education.
       Second, the bill recognizes that wise investments in early 
     learning must begin at birth.
       Third, the bill acknowledges the importance of a 
     comprehensive, knowledge-based approach to early childhood 
     development, with comparable attention to its cognitive, 
     language, social, emotional, and physical dimensions, as well 
     as to the foundations of early literacy.
       Fourth, the bill provides incentives for states to engage 
     in an integrated planning process designed to reduce the 
     universally criticized fragmentation that characterizes our 
     patchwork systems of early care and education programs, 
     including interventions for young children with special needs 
     and those at high risk for school difficulties.
       Clearly, the most contentious issue that has arisen in the 
     formulation of this bill has been the concept of bonus grants 
     and its linkage to the assessment of school readiness in 
     children. Early in the negotiation process, I found myself in 
     strong agreement with the legitimate concerns of those who 
     warned about the potential adverse impacts of ``high stakes'' 
     child testing on the providers of early care and education, 
     the children themselves, and the entire early childhood 
     environment. Despite these caveats, which remain real, I 
     believe in the value of incentives, the importance of 
     accountability focused ultimately on whether children are 
     doing better as a result of our efforts, and the need to 
     make sure that both the concept and the implementation of 
     child performance assessment are guided primarily by 
     knowledge and not by politics.
       In this context, it is my strong belief that the key issue 
     is not whether we should assess child outcomes, but how and 
     when they should be measured, and what protections can be 
     built into the process to prevent unintended, adverse 
     consequences. Thus, although the ultimate implementation of 
     any system of child evaluation must be undertaken with great 
     care and vigilance, I believe that the proposed legislation 
     has many important features that provide a strong framework 
     for a sound incentive model. The basis for my support is the 
     following:
       No bonus grants are awarded until the third year, which 
     allows sufficient time for the actual interventions (i.e., 
     system building and investments in workforce development) to 
     be implemented before their impact is measured.
       Initial bonus grants will be awarded in the third year 
     based on evidence of increased workforce capacity and 
     retention, which is the bill's most important strategy for 
     improving the quality of early care and education, as a 
     necessary vehicle for enhancing child outcomes.
       The award of bonus grants based on improved child outcomes 
     does not begin until the fourth year, at which point it is 
     reasonable to expect that the investments of the first three 
     years will begin to show measurable impacts on children's 
     school readiness.
       The indicators of school readiness are viewed 
     comprehensively and include cognitive, language, social, 
     emotional, and physical dimensions, and not just a focus on 
     early literacy.
       The responsibility for identifying key indicators of school 
     readiness and a selection of scientifically reliable and 
     valid measurement options is assigned to an independent panel 
     of experts outside of the political process.
       Multiple conditions are specified in the bill to minimize 
     potential abuse of the assessment process and to protect 
     children from the consequences of a high-stakes testing 
     environment (i.e., assessments restricted to kindergarten 
     children; no testing of preschoolers; prohibitions against 
     mandatory developmental screening against parental wishes; 
     and prohibitions against the use of assessment data to 
     identify or track individuals or to determine kindergarten 
     eligibility or retention)
       The bill includes an innovative provision for bonus grants 
     to support demonstration projects in states that have not 
     documented improved child outcomes, guided by the lessons 
     learned in states that have achieved measurable gains, which 
     establishes the critically important precedent of recognizing 
     the value of using accountability processes to improve 
     policies and practices and not to stigmatize individual 
     programs.
       In summary, I believe that the proposed legislation will 
     advance the health development and well-being of our nation's 
     young children, and I would be happy to provide any 
     additional input that could be helpful.
                                  ____

                                          Boston University School


                                                  of Medicine,

                                          Boston, MA, May 8, 2002.
     Senator Edward M. Kennedy,
     Chairman, Committee on Health, Education, Labor and Pensions, 
         Dirksen Senate Office Building, Washington, DC.
       Dear Senator Kennedy: I enthusiastically welcome the 
     ``Early Care and Education Act'' that you and Senator Gregg 
     introduced before the U.S. Senate this week.
       In my years as a pediatrician, I have witnessed the wide-
     ranging impact of poverty on thousands of families, 
     particularly as it relates to the healthy development of 
     children. The most important lesson that I've learned is that 
     only a truly comprehensive strategy--comprised of a wide 
     variety of interventions, employing the energies, enthusiasm 
     and expertise of many professions--can provide the strong web 
     of support that the most vulnerable families need to support 
     the healthy development of their children.
       The Early Care and Education Act puts this lesson into 
     practice. I am particularly excited and encouraged by the 
     role this bill envisions for healthcare providers, 
     pediatricians in particular, to support parents as their 
     children's first teacher. By allowing states to use funds 
     from this bill to both train healthcare professionals to 
     conduct developmental assessments, and support of voluntary 
     programs such as Reach Out and Read, the Early Care and 
     Education Act brings enlists the participation of an 
     important ally.
       As pediatricians, we have faith and confidence that much of 
     the guidance and advice that we give to parents helps parents 
     help their children. But Reach Out and Read, a program that 
     we are now successfully implementing in a wide variety of 
     healthcare settings across the country, is the only primary 
     care-based intervention that has been shown by scientific 
     evidence, to improve a child's

[[Page S4859]]

     development outcome. ROR's inclusion in statewide efforts 
     will be a wonderful, and proven, complement to existing 
     infrastructure of early care and education.
       I thank you for the leadership you continue to show in 
     supporting parents in their efforts to help their children 
     grow up healthy. We look forward to helping in any way we 
     can.
           Sincerely,

                                          Barry Zuckerman, MD,

                                    Chief and Chairman, Department
     of Pediatrics.
                                  ____


The Following People Will Respond to Questions About the Early Care and 
                             Education Bill

       Dr. Jack Shonkoff MD, Dean of the Heller School of Social 
     Policy at Brandeis University and Chair of the National 
     Academy of Sciences Panel on Integrating The Science of Early 
     Childhood Development, Waltham, MA 02454.
       Ed Zigler, PhD, Sterling Professor of Psychology, Yale 
     University, New Haven, CT 06520.
       Art Steller, PhD, President/CEO, High Scope Educational 
     Research Foundation, Ypsilanti, MI 48198.
       Dorothy Strickland, PhD, Professor of Reading, Rutgers 
     University, New Brunswick, NJ.
       Craig Ramey, PhD, Professor, Georgetown University, 
     Washington, DC.
       Faith Wohl, President, Child Care Action Campaign, New 
     York, New York 10001.
       Rob Reiner, President, I AM Your Child Foundation, Beverly 
     Hills, CA 90210.

  Mr. GREGG. Mr. President, in 1989, President Bush challenged our 
Nation and our Nation's governors to do two things: first, to develop a 
strategy to improve our educational system and thereby the academic 
performance of our Nation's students and second, to work toward the 
goals that all children would enter school ready to learn.
  Well, the first part of the challenge was realized with the landmark 
reforms made earlier this year in the Elementary and Secondary 
Education Act. With its passage, we have taken significant, if not 
monumental, steps to improve the education of our K-12 students.
  The second part of the challenge, that all children would enter 
school ready to learn remains, and has now become, the focus of our 
attention.
  The President has taken the first step by launching his ``Good start, 
Grow Smart'' Early Childhood Initiative. Following the President's 
lead, Senator Kennedy and I are today introducing the Early Care and 
Education Act.
  This legislation will hopefully bring together many of the Federal, 
State and local efforts already underway in the area of early 
education. The United States currently invests more than $18 billion 
per year in early childhood care and education through a variety of 
Federal, State, and local programs. Unfortunately, we are seeing very 
mixed results. Many children continue to enter school unprepared to 
learn, despite our best efforts. And despite this significant current 
investment of resources, 85 percent of child care is of poor to 
mediocre quality.
  This says to me that we need to spend our funds more wisely, and to 
target them more effectively at what works. That is what the Early Care 
and Education bill will do.
  Under ECEA, we will ask states to do seven basic things as a 
condition for receiving an incentive grant:
  One, blend and coordinate existing early learning resources; two, 
identify barriers which prevent them from fully utilizing Federal, 
State, an local public and private funds for early care and early 
education; three, promulgate voluntary program guidelines for early 
care and early education programs in the State; four, develop general 
goals for school preparedness for children entering kindergarten; five, 
provide a list of suggested activities for parents and care-givers to 
offer young children that can improve children's school preparedness; 
six, establish a workforce development plan that ensures comprehensive 
training for early childhood education professionals that is linked to 
a compensation package; and seven, ensure that this training uses 
curricula that will prepare early childhood professionals to 
effectively implement curricula identified as scientifically based and 
effective to prepare young children to succeed in school.
  Then, to make sure States are actually making measured improvement in 
attaining their goals and performance measures, we set aside 20 percent 
of the funds appropriated for bonus grants to high performing states. 
States that are making measured improvement in improving the 
competencies of early learning professionals in the state and in the 
overall school readiness of their kindergartners will be eligible for 
this bonus, which becomes effective when appropriation levels reach 
$500 million.
  This is significant and is somewhat of a departure form what 
Washington is used to. But we must no longer settle for programs that 
are untested and unaccountable to the American taxpayer for results. 
Our children, especially our disadvantaged children deserve better.
  Under the ECEA, States will have the flexibility to identify, target 
and fund the most significant needs in their own states. They will be 
required to recognize and include parents as equal partners in the 
education of young children and respect the choices parents make to use 
or not use out-of-home child care or preschool settings.
  They will be asked to set specific goals for school readiness and 
workforce improvement and then will be held accountable for reaching 
them. They will have the assistance of a National Panel of Experts in 
developing these goals and measures and the resources of the 
Departments of Education and Health and Human Services who will be 
required to work together, jointly, to administer this program. The 
largest investments in child care and early education are scattered 
throughout these two agencies and it is absolutely essential that they 
work together to effectively meet the needs of working families and 
young children. This is unprecedented but it must happen.
  Let me conclude my saying that I am very excited about this 
legislation and encouraged by the willingness of members of both sides 
of the isle to work together for the good of the children to create a 
system where No Child Will be Left Behind. I am hope that by working 
together in partnership with parents, and States we will make great 
strides in preparing our young children for school. I look forward to 
our continued dialogue on this issue and to moving this legislation 
through the Congress and to the President.
  Mr. VOINOVICH. Mr. President, I rise today to discuss the Early Care 
and Education Act of 2002 which was introduced today by Chairman 
Kennedy. I am proud to have been invited by him to work on this 
legislation, together with the ranking member of the Senate Health, 
Education, Labor, and Pensions Committee, Senator Gregg, and the other 
distinguished cosponsors.
  Early childhood development is a true passion of mine. In fact, one 
of the first bills I introduced when I came to the Senate in 1999 was 
an early childhood development bill targeting children from prenatal 
through age three. And the following year I was pleased to work with 
Senators Stevens and Kennedy on the Early Learning Opportunities Act.
  Leading researchers from the distinguished National Research Council 
and Institute of Medicine emphasize that the first years of a child's 
life are the most important time in a child's development in terms of 
socialization and brain synapses, both of which are necessary for 
learning.
  As a fiscal conservative, I believe that one of the best investments 
the federal government can make is in 0-3. Providing comprehensive 
early care that includes physical, social, emotional and cognitive 
development makes a real difference in a child's future because it not 
only prepares them for preschool, but also carries through to provide 
success from K through 12.
  I am encouraged that both the President and First Lady are working 
actively to raise the profile of this important bipartisan initiative 
that will provide high-quality, comprehensive care for young children.
  When I was Governor of Ohio, I prioritized early childhood 
development, drawing a line in the sand and determining that our State 
would not allow another generation of children to fall by the wayside. 
We committed to meeting the health, education and social service needs 
of the disadvantaged from prenatal through kindergarten.
  Ohio became the nation's leader in Head Start by fully-funding it--in 
combination with other State programs, so that every eligible child had 
a space if their parents choose it. Then we began local partnerships 
between government agencies and community organizations in every 
county, with the goal of having all children in Ohio starting school 
ready to learn. I should also mention something we seem to forget, that 
the

[[Page S4860]]

first goal of the national initiative launched in 1989, Goals 200, was 
that by the year 2000, all children in America would start school ready 
to learn.
  Ohio also launched Help Me Grow, an information campaign for parents 
of every income level regarding prenatal and well-baby care, child 
development, child safety, preventing child abuse and identifying local 
resources to help with all those issues that are so essential to 
raising a healthy child.
  I was so impressed with the results we saw in Ohio that I agreed as 
vice-chairman of the National Governors Association to join with 
Governor Miller of Nevada to make early childhood development a two-
year priority. This was the first time two consecutive chairmen of the 
National Governors Association joined in having the same priority, 
encouraging States to focus on child development from 0-3. I also 
worked with Rob Reiner, who created and developed the I am Your Child 
Foundation, and who has done so much to raise awareness and provide 
assistance to parents for early child care.
  The bill that Senators Kennedy, Gregg, Murray, and I are introducing 
will build on what States such as Ohio have already done, coordinate 
efforts and target dollars to make a real difference for those young 
children who are the most vulnerable in our society.
  The incentive grants in the bill will help states that have already 
started down this path provide higher quality services, but more 
importantly, this bill will provide the catalyst for those States that 
have not yet made early childhood development a priority. I'm amazed 
today that only 13 states have actually put State money into the Head 
Start program.
  Unfortunately, for families in some states, there is no coordinated 
system that connects parents of young children to a network of 
information and resources for assistance with the comprehensive early 
care a child needs to start school ready to learn.
  By providing Federal dollars to help states coordinate their efforts, 
we are drawing a line in the sand for the Nation and saying, ``This is 
the generation that will have every child starting school ready to 
learn.''
  As a federalist, I believe states can and should have a big role in 
helping make our Nation a better place to live. This bill provides the 
Federal-State partnership which is appropriate, avoids federally 
imposed one-size-fits-all solutions, and gives States the flexibility 
to find solutions that best fit their citizens' needs. I think the best 
evidence of how important that is, is the successful reform of this 
country's welfare system.
  I've seen what works and I've seen what doesn't. I'm glad to be a 
part of the team to get this bill passed and I pray that my fellow 
Senators are inspired to understand how important this is to the future 
of America.
  Mr. WELLSTONE. Mr. President, I join with Senators Kennedy, Gregg, 
Murray, and others in introducing the Early Care and Education Act. I 
am pleased to have worked on this legislation because I believe it is 
absolutely critical that we do more on the Federal level to enhance 
early childhood education throughout the country. Seventy four percent 
of children in out of home care had care that was classified as 
mediocre--meeting health and safety requirements but offering no 
education or developmental benefits. Twelve percent were in places that 
were considered unsafe and only 14 percent were considered good. this 
situation is totally unacceptable.
  The Early Care and Education Act would start to address this severe 
situation by providing much needed funds for states to support a more 
comprehensive, more high quality infrastructure for early care. It 
would fund professional development for early care providers and 
provide for wage incentive programs to ensure that providers get the 
salaries they deserve. It would provide incentives to States to 
integrate and coordinate services for your children. I am particularly 
pleased that this legislation would also provide funding for parent 
education programs such as the Early Childhood and Family Education 
program in Minnesota.
  The ECFE program has been extraordinarily successful in my state. It 
is the largest early childhood program in Minnesota and is now offered 
in districts that together encompass 99 percent of the population of 
infants and toddlers in the State. Forty four percent of all young 
children and their families participate in the program.
  Four different studies of outcomes of the ECFE program have all 
concluded that ECFE is effective with all types of families. Benefits 
for children include improved social interactions and relationships, 
improved social skills, increased self confidence and self-esteem, and 
improvement in language and communication skills. For parents, ECFE 
increases the ability to know what is important for children's healthy 
growth and development over time, improves their confidence and leads 
to far higher participation in parental involvement activities in 
elementary school.
  A recent study by the Office of Educational Research and Improvement 
at the United States Department of Education has described the 
Minnesota ECFE program as an example of the type of program that can 
provide children and families with ``continuity and [can] ease the 
critical transition to school.'' That is the goal of the important 
legislation we are introducing today.
  Forty percent of all American children enter kindergarten unprepared 
for school. This is unacceptable. We know that children need to be in a 
stimulating environment to spur the brain development that is critical 
to intelligence. This bill will move us in the direction of ensuring 
that every child has access to better quality care by helping States 
develop an improved and integrated system of care. The academic 
achievement gap is greatest when children start school, so if we are 
serious about closing the achievement gap between poor and more 
affluent students, we must do more to intervene early. This bill is a 
strong move in the right direction. I thank my colleagues for their 
excellent work on this important issue.
  Mr. DeWINE. Mr. President, I rise today with my colleagues, Senators 
Kennedy, Gregg, and Voinovich, to introduce the ``Early Education and 
Care Act,'' a bill to help improve the quality of early childhood 
education.
  We all know that our children are the most vulnerable and valuable 
members of our population. As the parents of eight and grandparents of 
seven, my wife, Fran and I know the responsibility, time, and 
dedication it takes to ensure that children B especially very young 
children, live in a stimulating environment that will enhance their 
development.
  The first five years of a child's life are a time of momentous 
change. Research shows that a child's brain size doubles between birth 
and age three. I remember my own children during this time, and it 
seemed like everyday they were learning and doing something for the 
first time--walking, crawling, or learning another new word. Kids are 
like sponges, particularly at this early stage of life.
  That's why education is such an important part of our children's 
lives, not just when they reach kindergarten, but really from the day 
they are born. The bill we are introducing today would help reshape how 
states and American families view child development. I have worked with 
the other sponsors to ensure that information about the importance of 
child development, age-appropriate activities, and activities that 
increase a child's language and literacy development are all targeted 
at every home in Ohio and across the country. This information needs to 
go to our childcare centers, libraries, and pediatrician offices.
  Now, not every child less than five years of age goes to a formal 
pre-school or childcare setting. But, they all go to the doctor and our 
message needs to be incorporated into well-baby visits and ordinary 
check ups. Our legislation would enable states to provide training to 
health care providers on conducting child development analyses as part 
of a routine physical examination.
  Programs, such as ``Reach Out and Read,'' already have been 
successful in using the health care profession to spread literacy. 
``Reach Out and Read'' gives books to parents to take home and share 
with their children. Doctors that participate in this program have 
incorporated literacy and language development into questions during 
physical evaluations, and they have emphasized the importance of 
literacy to the parents.
  Early learning programs play a pivotal role in preparing our children 
for

[[Page S4861]]

kindergarten and beyond. First Lady Laura Bush has taken an important 
leadership role in this issue with her ``Ready to Read, Ready to 
Learn'' initiative, which has helped put early learning into the 
national spotlight. For example, when she testified before the Senate 
Health, Education, Labor, and Pensions Committee, she described a great 
discrepancy that exists in our country. She explained that when 
children enter their kindergarten classrooms on the first day of 
school, they are not all starting from the same point. Some children 
are much more advanced than others. Kindergarten teachers could tell 
you on day one, which students received quality pre-primary education 
and which ones hadn't gone to a quality program or had ever been in an 
educational setting before.
  Research shows that children who attend quality early childcare 
programs when they were three or four years-old score better in math, 
language, and on social skills development in early elementary school 
than children who attend poor quality childcare programs. Furthermore, 
children in early learning programs with high quality teachers--
teachers with associate degrees or bachelor degrees--do substantially 
better. Our legislation would create incentives for states to enable 
those caring for our children to get the training and education they 
need to best teach our very young children. I'm very pleased with what 
my own home state of Ohio did in 1999, when we passed a law requiring 
that every Head Start teacher by the year 2007, have at least an 
associates degree in early childhood education. Currently, federal law 
mandates that only 50 percent of Head Start teachers have an associate 
degree.
  These are all very complex issues, Mr. President. We need to find a 
balance between quality pre-primary education programs and ensuring 
that we reach as many children and families as possible. The time has 
come for a more comprehensive program B one that reaches all children 
right from the start. I believe our legislation accomplishes this task, 
and I encourage my colleagues to support this effort.
                                 ______
                                 
      By Mrs. MURRAY (for herself, Ms. Cantwell, and Mr. Inouye):
  S. 2567. A bill to provide for equitable compensation of the Spokane 
Tribe of Indians of the Spokane Reservation in settlement of claims of 
the Tribe concerning the contribution of the Tribe to the production of 
hydropower by the Grand Coulee Dam, and for other purposes; to the 
Committee on Indian Affairs.
  Mrs. MURRAY. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2567

       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 ``Spokane Tribe of Indians of 
     the Spokane Reservation Grand Coulee Dam Equitable 
     Compensation Settlement Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) from 1927 to 1931, at the direction of Congress, the 
     Corps of Engineers investigated the Columbia River and its 
     tributaries to determine sites at which power could be 
     produced at low cost;
       (2) the Corps of Engineers--
       (A) identified a number of sites, including the site at 
     which the Grand Coulee Dam is located; and
       (B) recommended that power development at those sites be 
     performed by local governmental authorities or private 
     utilities under the Federal Power Act (16 U.S.C. 791a et 
     seq.);
       (3) under section 10(e) of that Act (16 U.S.C. 803(e)), a 
     licensee is required to compensate an Indian tribe for the 
     use of land under the jurisdiction of the Indian tribe;
       (4) in August 1933, the Columbia Basin Commission, an 
     agency of the State of Washington, received a preliminary 
     permit from the Federal Power Commission for water power 
     development at the Grand Coulee site;
       (5) in the mid-1930's, the Federal Government, which is not 
     subject to the Federal Power Act (16 U.S.C. 791a et seq.)--
       (A) federalized the Grand Coulee Dam project; and
       (B) began construction of the Grand Coulee Dam;
       (6) at the time at which the Grand Coulee Dam project was 
     federalized, the Federal Government recognized that the 
     Spokane Tribe and the Confederated Tribes of the Colville 
     Reservation had compensable interests in the Grand Coulee Dam 
     project, including compensation for--
       (A) the development of hydropower;
       (B) the extinguishment of a salmon fishery on which the 
     Spokane Tribe was almost completely financially dependent; 
     and
       (C) the inundation of land with loss of potential power 
     sites previously identified by the Spokane Tribe;
       (7) in the Act of June 29, 1940, Congress--
       (A) in the first section (16 U.S.C. 835d) granted to the 
     United States--
       (i) all rights of Indian tribes in land of the Spokane 
     Tribe and Colville Indian Reservations that were required for 
     the Grand Coulee Dam project; and
       (ii) various rights-of-way over other land under the 
     jurisdiction of Indian tribes that were required in 
     connection with the project; and
       (B) in section 2 (16 U.S.C. 835e) provided that 
     compensation for the land and rights-of-way was to be 
     determined by the Secretary of the Interior in such amounts 
     as the Secretary determined to be just and equitable;
       (8) in furtherance of that Act, the Secretary of the 
     Interior paid--
       (A) to the Spokane Tribe, $4,700; and
       (B) to the Confederated Tribes of the Colville Reservation, 
     $63,000;
       (9) in 1994, following 43 years of litigation before the 
     Indian Claims Commission, the United States Court of Federal 
     Claims, and the United States Court of Appeals for the 
     Federal Circuit, Congress ratified an agreement between the 
     Confederated Tribes of the Colville Reservation and the 
     United States that provided for damages and annual payments 
     of $15,250,000 in perpetuity, adjusted annually, based on 
     revenues from the sale of electric power from the Grand 
     Coulee Dam project and transmission of that power by the 
     Bonneville Power Administration;
       (10) in legal opinions issued by the Office of the 
     Solicitor of the Department of the Interior, a Task Force 
     Study conducted from 1976 to 1980 ordered by the Committee on 
     Appropriations of the Senate, and hearings before Congress at 
     the time at which the Confederated Tribes of the Colville 
     Reservation Grand Coulee Dam Settlement Act (Public Law 103-
     436; 108 Stat. 4577) was enacted, it has repeatedly been 
     recognized that--
       (A) the Spokane Tribe suffered damages similar to those 
     suffered by, and had a case legally comparable to that of, 
     the Confederated Tribes of the Colville Reservation; but
       (B) the 5-year statute of limitations under the Act of 
     August 13, 1946 (25 U.S.C. 70 et seq.) precluded the Spokane 
     Tribe from bringing a civil action for damages under that 
     Act;
       (11) the inability of the Spokane Tribe to bring a civil 
     action before the Indian Claims Commission can be attributed 
     to a combination of factors, including--
       (A) the failure of the Bureau of Indian Affairs to carry 
     out its advisory responsibilities in accordance with that 
     Act; and
       (B) an attempt by the Commissioner of Indian Affairs to 
     impose improper requirements on claims attorneys retained by 
     Indian tribes, which caused delays in retention of counsel 
     and full investigation of the potential claims of the Spokane 
     Tribe;
       (12) as a consequence of construction of the Grand Coulee 
     Dam project, the Spokane Tribe--
       (A) has suffered the loss of--
       (i) the salmon fishery on which the Spokane Tribe was 
     dependent;
       (ii) identified hydropower sites that the Spokane Tribe 
     could have developed; and
       (iii) hydropower revenues that the Spokane Tribe would have 
     received under the Federal Power Act (16 U.S.C. 791a et seq.) 
     had the project not been federalized; and
       (B) continues to lose hydropower revenues that the Federal 
     Government recognized were owed to the Spokane Tribe at the 
     time at which the project was constructed; and
       (13) more than 39 percent of the land owned by Indian 
     tribes or members of Indian tribes that was used for the 
     Grand Coulee Dam project was land of the Spokane Tribe.

     SEC. 3. STATEMENT OF PURPOSE.

       The purpose of this Act is to provide fair and equitable 
     compensation to the Spokane Tribe, using the same 
     proportional basis as was used in providing compensation to 
     the Confederated Tribes of the Colville Reservation, for the 
     losses suffered as a result of the construction and operation 
     of the Grand Coulee Dam project.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Bonneville Power Administration.
       (2) Confederated tribes act.--The term ``Confederated 
     Tribes Act'' means the Confederated Tribes of the Colville 
     Reservation Grand Coulee Dam Settlement Act (Public Law 103-
     436; 108 Stat. 4577).
       (3) Fund account.--The term ``Fund Account'' means the 
     Spokane Tribe of Indians Settlement Fund Account established 
     under section 5(a).
       (4) Spokane tribe.--The term ``Spokane Tribe'' means the 
     Spokane Tribe of Indians of the Spokane Reservation, 
     Washington.

     SEC. 5. SETTLEMENT FUND ACCOUNT.

       (a) Establishment of Account.--There is established in the 
     Treasury an interest bearing account to be known as the 
     ``Spokane Tribe of Indians Settlement Fund Account''.
       (b) Deposit of Amounts.--
       (1) Initial deposit.--On the date on which funds are made 
     available to carry out this

[[Page S4862]]

     Act, the Secretary of the Treasury shall deposit in the Fund 
     Account, as payment and satisfaction of the claim of the 
     Spokane Tribe for use of land of the Spokane Tribe for 
     generation of hydropower for the period beginning on June 29, 
     1940, and ending on November 2, 1994, an amount that is equal 
     to 39.4 percent of the amount paid to the Confederated Tribes 
     of the Colville Reservation under section 5(a) of the 
     Confederated Tribes Act, adjusted to reflect the change, 
     during the period beginning on the date on which the payment 
     described in subparagraph (A) was made to the Confederated 
     Tribes of the Colville Reservation and ending on the date of 
     enactment of this Act, in the Consumer Price Index for all 
     urban consumers published by the Department of Labor.
       (2) Subsequent deposits.--On September 30 of the first 
     fiscal year that begins after the date of enactment of this 
     Act, and on September 30 of each of the 5 fiscal years 
     thereafter, the Administrator of the Bonneville Power 
     Administration shall deposit in the Fund Account an amount 
     that is equal to 7.88 percent of the amount authorized to be 
     paid to the Confederated Tribes of the Colville Reservation 
     under section 5(b) of the Confederated Tribes Act through the 
     end of the fiscal year during which this Act is enacted, 
     adjusted to reflect the change, during the period beginning 
     on the date on which the payment to the Confederated Tribes 
     of the Colville Reservation was first made and ending on the 
     date of enactment of this Act, in the Consumer Price Index 
     for all urban consumers published by the Department of Labor.
       (c) Annual Payments.--On September 1 of the first fiscal 
     year after the date of enactment of this Act, and annually 
     thereafter, the Administrator (or the head of any successor 
     agency) shall pay to the Spokane Tribe an amount that is 
     equal to 39.4 percent of the annual payment authorized to be 
     paid to the Confederated Tribes of the Colville Reservation 
     under section 5(b) of the Confederated Tribes Act for the 
     fiscal year.

     SEC. 6. USE AND TREATMENT OF SETTLEMENT FUNDS.

       (a) Transfer of Funds to Spokane Tribe.--
       (1) Initial transfer.--Not later than 60 days after the 
     date on which the Secretary of the Treasury receives from the 
     Spokane Business Council written notice of the adoption by 
     the Spokane Business Council of a resolution requesting that 
     the Secretary of the Treasury execute the transfer of 
     settlement funds described in section 5(a), the Secretary of 
     the Treasury shall transfer all or a portion of the 
     settlement funds, as appropriate, to the Spokane Business 
     Council.
       (2) Subsequent transfers.--If not all funds described in 
     section 5(a) are transferred to the Spokane Business Council 
     under an initial transfer request described in paragraph (1), 
     the Spokane Business Council may make subsequent requests 
     for, and the Secretary of the Treasury may execute subsequent 
     transfers of, those funds.
       (b) Use of Initial Payment Funds.--Of the settlement funds 
     described in subsections (a) and (b) of section 5--
       (1) 25 percent shall be--
       (A) reserved by the Spokane Business Council; and
       (B) used for discretionary purposes of general benefit to 
     all members of the Spokane Tribe; and
       (2) 75 percent shall be used by the Spokane Business 
     Council to carry out--
       (A) a resource development program;
       (B) a credit program;
       (C) a scholarship program; or
       (D) a reserve, investment, and economic development 
     program.
       (c) Use of Annual Payment Funds.--Annual payments made to 
     the Spokane Tribe under section 5(c) may be used or invested 
     by the Spokane Tribe in the same manner and for the same 
     purposes as other tribal governmental funds.
       (d) Approval by Secretary.--Notwithstanding any other 
     provision of law--
       (1) the approval of the Secretary of the Treasury or the 
     Secretary of the Interior for any payment, distribution, or 
     use of the principal, interest, or income generated by any 
     settlement funds transferred or paid to the Spokane Tribe 
     under this Act shall not be required; and
       (2) the Secretary of the Treasury and the Secretary of the 
     Interior shall have no trust responsibility for the 
     investment, supervision, administration, or expenditure of 
     those funds after the date on which the funds are transferred 
     to or paid to the Spokane Tribe.
       (e) Treatment of Funds for Certain Purposes.--The payments 
     and distributions of any portion of the principal, interest, 
     and income generated by the settlement funds described in 
     section 5 shall be treated in the same manner as payments or 
     distributions under section 6 of the Saginaw Chippewa Indian 
     Tribe of Michigan Distribution of Judgment Funds Act (Public 
     Law 99-346; 100 Stat. 677).
       (f) Tribal Audit.--After the date on which the settlement 
     funds described in section 5 are transferred or paid to the 
     Spokane Tribe, the funds--
       (1) shall be considered to be Spokane Tribe governmental 
     funds; and
       (2) shall be subject to an annual tribal governmental 
     audit.

     SEC. 7. REPAYMENT CREDIT.

       (a) In General.--For the first fiscal year that begins 
     after the date of enactment of this Act, and for each 
     subsequent fiscal year in which annual payments are made 
     under this Act, the Administrator shall deduct from the 
     interest payable to the Secretary of the Treasury from net 
     proceeds (as defined in section 13 of the Federal Columbia 
     River Transmission System Act (16 U.S.C. 838k)), a percentage 
     of the payment made to the Spokane Tribe for the preceding 
     fiscal year.
       (b) Calculation.--The percentage deducted under subsection 
     (a) shall be calculated and adjusted to ensure that the 
     Bonneville Power Administration receives a deduction 
     comparable to that which the Bonneville Power Administration 
     receives for payments made to the Confederated Tribes of the 
     Colville Reservation under to the Confederated Tribes Act.
       (c) Crediting.--
       (1) Deductions.--
       (A) In general.--Except as provided in subparagraph (B), 
     each deduction made under this section shall be--
       (i) credited to the interest payments otherwise payable by 
     the Administrator to the Secretary of the Treasury during the 
     fiscal year in which the deduction is made; and
       (ii) allocated pro rata to all interest payments on debt 
     associated with the generation function of the Federal 
     Columbia River Power System that are due during that fiscal 
     year.
       (B) Exception.--If, for any fiscal year, the amount of a 
     deduction described in subparagraph (A) is greater than the 
     amount of interest due on debt associated with the generation 
     function for the fiscal year, the amount of the deduction 
     that exceeds the interest due on debt associated with the 
     generation function shall be allocated pro rata to all other 
     interest payments due during that fiscal year.
       (2) Other programs.--To the extent that a deduction 
     described in paragraph (1) exceeds the amount of interest 
     described in that paragraph, the deduction shall be applied 
     as a credit against any other payments that the Administrator 
     makes to the Secretary of the Treasury.

     SEC. 8. SATISFACTION OF CLAIMS.

       Payment by the Administrator under section 5 constitutes 
     full satisfaction of the claim of Spokane Tribe to a fair 
     share of the annual hydropower revenues generated by the 
     Grand Coulee Dam project from June 29, 1940, through the 
     fiscal year preceding the fiscal year in which this Act is 
     enacted.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
                                 ______
                                 
      By Mrs. MURRAY (for herself and Ms. Cantwell):
  S. 2568. A bill to amend title XVIII of the Social Security Act to 
improve the provision of items and services provided to medicare 
beneficiaries residing in rural areas; to the Committee on Finance.
  Mrs. MURRAY. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2568

       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 ``MediFair Act of 2002''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Regional inequities in medicare reimbursement has 
     created barriers to care for seniors and the disabled.
       (2) The regional inequities in medicare reimbursement 
     penalize States that have cost-effective health care delivery 
     systems and rewards those States with high utilization rates 
     and that provide inefficient care.
       (3) Over a lifetime, those inequities can mean as much as a 
     $50,000 difference in the cost of care provided per 
     beneficiary.
       (4) Regional inequities have resulted in creating very 
     different medicare programs for seniors and the disabled 
     based on where they live.
       (5) Because the Medicare+Choice rate is based on the fee-
     for-service reimbursement rate, regional inequities have 
     allowed some medicare beneficiaries access to plans with 
     significantly more benefits including prescription drugs. 
     Beneficiaries in States with lower reimbursement rates have 
     not benefited to the same degree as beneficiaries in other 
     parts of the country.
       (6) Regional inequities in medicare reimbursement have 
     created an unfair competitive advantage for hospitals and 
     other health care providers in States that receive above 
     average payments. Higher payments mean that those providers 
     can pay higher salaries in a tight, competitive market.
       (7) Regional inequities in medicare reimbursement can limit 
     timely access to new technology for beneficiaries in States 
     with lower reimbursement rates.
       (8) Regional inequities in medicare reimbursement, if left 
     unchecked, will reduce access to medicare services and impact 
     healthy outcomes for beneficiaries.
       (9) Regional inequities in medicare reimbursement are not 
     just a rural versus urban problem. Many States with large 
     urban centers are at the bottom of the national average for 
     per beneficiary costs.

[[Page S4863]]

     SEC. 3. IMPROVING FAIRNESS OF PAYMENTS TO PROVIDERS UNDER THE 
                   MEDICARE FEE-FOR-SERVICE PROGRAM.

       Title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.) is amended by adding at the end the following new 
     section:


``improving payment equity under the original medicare fee-for-service 
                                program

       ``Sec. 1897. (a) Establishment of System.--Notwithstanding 
     any other provision of law, the Secretary shall establish a 
     system for making adjustments to the amount of payment made 
     to entities and individuals for items and services provided 
     under the original medicare fee-for-service program under 
     parts A and B.
       ``(b) System Requirements.--
       ``(1) Increase for states below the national average.--
     Under the system established under subsection (a), if a State 
     average per beneficiary amount for a year is less than the 
     national average per beneficiary amount for such year, then 
     the Secretary (beginning in 2003) shall increase the amount 
     of applicable payments in such a manner as will result (as 
     estimated by the Secretary) in the State average per 
     beneficiary amount for the subsequent year being equal to the 
     national average per beneficiary amount for such subsequent 
     year.
       ``(2) Reduction for certain states above the national 
     average to enhance quality care and maintain budget 
     neutrality.--
       ``(A) In general.--The Secretary shall ensure that the 
     increase in payments under paragraph (1) does not cause the 
     estimated amount of expenditures under this title for a year 
     to increase or decrease from the estimated amount of 
     expenditures under this title that would have been made in 
     such year if this section had not been enacted by reducing 
     the amount of applicable payments in each State that the 
     Secretary determines has--
       ``(i) a State average per beneficiary amount for a year 
     that is greater than the national average per beneficiary 
     amount for such year; and
       ``(ii) healthy outcome measurements or quality care 
     measurements that indicate that a reduction in applicable 
     payments would encourage more efficient use of, and reduce 
     overuse of, items and services for which payment is made 
     under this title.
       ``(B) Limitation.--The Secretary shall not reduce 
     applicable payments under subparagraph (A) to a State that--
       ``(i) has a State average per beneficiary amount for a year 
     that is greater than the national average per beneficiary 
     amount for such year; and
       ``(ii) has healthy outcome measurements or quality care 
     measurements that indicate that the applicable payments are 
     being used to improve the access of beneficiaries to quality 
     care.
       ``(3) Determination of averages.--
       ``(A) State average per beneficiary amount.--Each year 
     (beginning in 2002), the Secretary shall determine a State 
     average per beneficiary amount for each State which shall be 
     equal to the Secretary's estimate of the average amount of 
     expenditures under the original medicare fee-for-service 
     program under parts A and B for the year for a beneficiary 
     enrolled under such parts that resides in the State.
       ``(B) National average per beneficiary amount.--Each year 
     (beginning in 2002), the Secretary shall determine the 
     national average per beneficiary amount which shall be equal 
     to the average of the State average per beneficiary amount 
     determined under subparagraph (A) for the year.
       ``(4) Definitions.--In this section:
       ``(A) Applicable payments.--The term `applicable payments' 
     means payments made to entities and individuals for items and 
     services provided under the original medicare fee-for-service 
     program under parts A and B to beneficiaries enrolled under 
     such parts that reside in the State.
       ``(B) State.--The term `State' has the meaning given such 
     term in section 210(h).
       ``(c) Beneficiaries Held Harmless.--The provisions of this 
     section shall not affect--
       ``(1) the entitlement to items and services of a 
     beneficiary under this title, including the scope of such 
     items and services; or
       ``(2) any liability of the beneficiary with respect to such 
     items and services.
       ``(d) Regulations.--
       ``(1) In general.--The Secretary, in consultation with the 
     Medicare Payment Advisory Commission, shall promulgate 
     regulations to carry out this section.
       ``(2) Protecting rural communities.--In promulgating the 
     regulations pursuant to paragraph (1), the Secretary shall 
     give special consideration to rural areas.''.

     SEC. 4. MEDPAC RECOMMENDATIONS ON HEALTHY OUTCOMES AND 
                   QUALITY CARE.

       (a) Recommendations.--The Medicare Payment Advisory 
     Commission established under section 1805 of the Social 
     Security Act (42 U.S.C. 1395b-6) shall develop 
     recommendations on policies and practices that, if 
     implemented, would encourage--
       (1) healthy outcomes and quality care under the medicare 
     program in States with respect to which payments are reduced 
     under section 1897(b)(2) of such Act (as added by section 3); 
     and
       (2) the efficient use of payments made under the medicare 
     program in such States.
       (b) Submission.--Not later than the date that is 9 months 
     after the date of enactment of this Act, the Commission shall 
     submit to Congress the recommendations developed under 
     subsection (a).
                                 ______
                                 
      By Ms. COLLINS (for herself, Mr. Nelson of Nebraska, Mr. 
        Hutchinson, Mrs. Lincoln, Mr. Smith of Oregon, and Mrs. 
        Clinton):
  S. 2570. A bill to temporarily increase the Federal medical 
assistance percentage for the medicaid program, and for other purposes; 
to the Committee on Finance.
  Ms. COLLINS. Mr. President, I rise today with my good friend, Senator 
Ben Nelson, to introduce a bill that would assist States through a 
period when most are experiencing fiscal crises. I am particularly 
pleased to team with Senator Nelson on this effort, as we have teamed 
on so many efforts in the past, because he has such a solid grasp of 
the fiscal issues now facing our States, and the ways we can most 
effectively help.
  We are pleased to be joined today by Senators Hutchinson, Lincoln, 
Clinton and Gordon Smith, making this, truly, a bipartisan effort.
  The recession may have ended earlier this year, but its effects 
linger, and they are being felt acutely by States from Maine to 
Nebraska, from New York to California. Though the recession has ended 
and economic growth picked up in the first quarter of the year, 
unemployment continues to rise, and now, standing at 6 percent, the 
U.S. unemployment rate is at an eight-year high.
  The recession, the resulting rise in unemployment, and the tragic 
events of September 11 have placed tremendous demands on government 
services and resources. At the same time, these factors have 
contributed to a dramatic and unexpected decrease in government 
revenues, at precisely the time when more revenues are needed to 
respond to the confluence of challenges that confront us.
  The result of increasing demands for services and resources and 
declining revenues is that States across the Nation are in crisis. The 
National Governors Association and National Association of State Budget 
Officers this month found that over 40 States are facing an aggregate 
budget shortfall of between $40 and $50 billion. Most States have seen 
their estimates of tax collections for the current year decrease, often 
dramatically. And while State governments are scrambling to respond, 
they are constrained in their ability to do so by one key factor, they 
cannot run deficits. Forty-nine States are required by law or 
constitution to balance their budgets.
  As a result, thirty-nine States have been forced to reduce their 
already-enacted budgets for fiscal year 2002 by cutting programs 
across-the-board, tapping rainy day funds, laying off employees, and 
implementing a variety of other cost-cutting measures. According to a 
National Conference of State Legislators report in April, States have 
been forced to cut a number of critical programs. Twenty-nine States 
have attempted to balance their budgets by cutting spending on higher 
education. Twenty-five States have cut corrections programs. Twenty-two 
have cut Medicaid. Seventeen States have cut K-12 education. And ten 
States have reduced aid to local governments. In addition, a number of 
States have raised taxes and fees by a total of $2.4 billion in 2003.
  We believe that the Federal Government can and should help States, 
and that it should do so in a responsible way. Therefore, today we are 
introducing legislation that would provide a temporary increase in the 
Federal Medicaid matching rate. It would increase the Federal 
Government's share of each State's Medicaid costs by 1.0 percent and 
hold the Federal matching rate for each State harmless for the 
remainder of this fiscal year and next. In addition, the bill includes 
a temporary block grant to States that would help them pay for the 
rising demand in social services resulting from the economic downturn. 
Our bill would provide approximately $8.9 billion in total fiscal 
relief to States which would allow them to expand, not contract, 
Medicaid and other health and social services.
  Our approach to fiscal relief has been endorsed by the National 
Governors Association, which supports our bill because it represents a 
sound and reasonable, bipartisan approach to State fiscal relief, and 
one that could be enacted expeditiously. It is also endorsed by the 
American Hospital Association,

[[Page S4864]]

which understands the importance of providing assistance to States at a 
time when many are looking toward health programs to help balance their 
budgets.

  Our bill targets most of its assistance on Medicaid, which is the 
fastest growing component of State budgets. While State revenues were 
stagnant or declined in many states last year, Medicaid costs increased 
11 percent. This year, Medicaid costs are increasing at an even greater 
rate, 13.4 percent. My home State of Maine is only one of a number of 
States that has been forced to consider cuts in their Medicaid programs 
to make up for their budget shortfalls.
  Earlier this year, Maine was facing a $248 million revenue shortfall. 
Faced with nothing but tough choices, our Governor proposed $58 million 
in Medicaid cuts, including reductions in payments to hospitals, 
nursing homes, group homes, and physicians. He was also forced to 
propose a delay in the enactment of legislation passed by the State 
Legislature last year to expand Medicaid to provide health coverage to 
an estimated 16,000 low-income uninsured Mainers.
  While subsequent revisions in the State's revenue forecasts enabled 
the Governor to restore most of these Medicaid cuts, the respite was 
only temporary. Earlier this month, Maine's budget estimators 
determined that the State's revenues would come in some $90 million 
under budget this year, and would experience another $90 million 
shortfall in the year to come. Suddenly, the State again must consider 
cutting critical programs and raising taxes. This is no small matter 
as, by some measures, Maine already imposes the highest tax burden in 
the Nation on its residents.
  The legislation we are introducing today will help to bridge Maine's 
funding gap by bringing an additional $56 million to my State's 
Medicaid and social services programs over the next eighteen months 
These funds would help forestall the need for any further cuts, and, 
hopefully, allow Maine to proceed with its plans to expand its Medicaid 
program to provide health care coverage for more of our low-income 
uninsured.
  The order facing Governor King in Maine and other governors across 
the country is a tall one indeed. The decisions they may be forced to 
make could affect the access of millions of Americans to health care 
and social services. I think we need to help, and the bill Senator 
Nelson and I introduce today does precisely that. We urge our 
colleagues to join us in this effort.
  Mr. NELSON of Nebraska. Mr. President, today I introduce, with my 
good friend Senator Susan Collins, a new proposal to provide temporary 
fiscal relief to the states to help them address their severe budget 
crises.
  A few months ago, this body passed and the President signed into law, 
a bill to stimulate the economy and help workers. It was not a perfect 
bill, but few are. But the economy was hurting and it was time to act. 
However, there were unintended consequences of that bill. Not only did 
the economic stimulus bill fail to provide State fiscal relief, but by 
making some changes to federal tax law, the bill unintentionally added 
to revenue shortfalls that most States are experiencing. This, in turn, 
has put programs such as medical assistance to the most vulnerable 
individuals in this country at risk.
  While the national economy is recovering from the recession, States' 
budgets will take another 12-18 months to recover. The National 
Governors Association and National Association of State Budget Officers 
this month found that over 40 States are facing an aggregate budget 
shortfall of $40 to $50 billion. Thirty-eight States have seen their 
revenues fall below previous estimates, some by dramatic amounts.
  Every State but one has to balance its budget, even in the midst of a 
recession. As a result, 41 States have been forced to reduce their 
fiscal 2002 enacted budgets by cutting programs across-the-board, 
tapping rainy day funds, laying off employees, and employing a variety 
of other cost-cutting measures. Some States have even had to raise 
taxes.
  According to the National Governors Association, Medicaid spending 
has been a particular struggle for States, since expenditures have 
risen by an average of 12 percent over the last 2 years, while State 
revenues rose a total of 5 percent. Medicaid spending has been driven 
higher by increases in health care costs nationwide, particularly the 
costs of prescription drugs, which has increased by 18 percent annually 
over the past 3 years, and by recession-related increases in the number 
of people eligible for Medicaid.
  States' Medicaid budget problems are exacerbated by scheduled 
reductions in Federal Medicaid payments to States. Between fiscal years 
2001 and 2002, 29 States had their Medicaid matching rates drop and 17 
States will have matching rate reductions between fiscal years 2002 and 
2003.
  To date, most States have been able to reduce Medicaid spending 
without cutting back eligibility significantly. As fiscal pressures 
mount, however, many States are likely to consider substantial 
reductions in eligibility that could leave hundreds of thousands more 
children, families, people with disabilities, and seniors uninsured.
  In other words, States have largely exhausted the usual ways of 
balancing their budgets. Given the projection of continued deficits, 
this means States will have to continue to reduce critical spending for 
health care, social services as well as other important priorities such 
as education. Most States' fiscal year begins in July, underscoring the 
need for the Congress to act expeditiously on this critical matter.

  Our proposal would provide a temporary 1.0-percent increase in the 
federal Medicaid matching rate. In addition, we hold the Federal 
matching rate for each State harmless for the remainder of this fiscal 
year and next. the bill also includes a temporary block grant to States 
that would help them pay for the rising demand in social services 
resulting from the economic downturn. Our bill would provide 
approximately $8.9 billion in total fiscal relief to States which would 
allow them to expand, not contract, Medicaid and other health and 
social services.
  The National Governors Association has endorsed our approach to 
fiscal relief because it represents a sound and reasonable, bipartisan 
approach to State fiscal relief, one that could be enacted 
expeditiously. Our bill blends several fiscal relief approaches 
previously supported in the Senate and in the House. As such, I believe 
this proposal can gain the widespread bipartisan support necessary to 
move forward.
  I urge my colleagues to join Senator Collins and me in this effort 
and show the States that Congress is not indifferent to their budget 
problems and that we will step in and provide meaningful assistance at 
a time when governors need it most.
  Mr. HUTCHINSON. Mr. President, I am pleased to join Senator Collins 
and Senator Nelson in introducing legislation today that will provide a 
temporary increase in the Federal Medicaid matching rate through fiscal 
year 2003.
  The National Governors Association and National Association of State 
Budget Officers recently reported that over 40 states are facing an 
aggregate shortfall of $40 to $50 billion. One of the primary reasons 
for these shortfalls is the rising cost of health care. Medicaid costs, 
which increased by 11 percent last year, are the fastest growing 
component of State budgets.
  Our legislation is critical to addressing these State budget 
deficits, especially in Arkansas, where a $12.8 million Medicaid 
shortfall was announced last November. Specifically, our bill would 
increase the Federal Government's share of each State's Medicaid costs 
by 1.0 percent and hold harmless the Federal matching rate for each 
state for the remainder of this fiscal year and next. Additionally, a 
temporary block grant program would be established in order to help 
meet the rising demand for social services resulting from the recent 
economic downturn.
  In total, this legislation will provide $8.9 billion in relief to 
States for the provision of Medicaid and social services. For Arkansas, 
this legislation will provide $71 million in relief over the next two 
years. Endorsed by the National Governors Association, this bipartisan 
legislation is worthy of Senate support, and I urge my colleagues to 
become cosponsors.
                                 ______
                                 
      By Mrs. FEINSTEIN:

[[Page S4865]]

  S. 2571. A bill to direct the Secretary of the Interior to conduct a 
special resources study to evaluate the suitability and feasibility of 
establishing the Rim of the Valley Corridor as a unit of the Santa 
Monica Mountains National Recreation Area; to the Committee on Energy 
and Natural Resources.
  Mrs. FEINSTEIN. Mr. President, I am pleased to introduce this bill 
today to direct the Secretary of the Interior to conduct a study to 
evaluate the suitability and feasibility of expanding the Santa Monica 
National Recreation Area to include the Rim of the Valley Corridor. 
This bill was introduced in the House by Congressman Adam Schiff last 
year.
  The Rim of the Valley Corridor, as designated by California law, 
encircles the San Fernando Valley, La Crescenta, Simi, Santa Clarita, 
Conejo Valleys, consisting of parts of the Santa Monica Mountains, 
Santa Susanna Mountains, San Gabriel Mountains, Verdugo Mountains, San 
Rafael Hills and adjacent connector area to the Los Padres and San 
Bernardino National Forests.
  With the population growth forecast for the next several decades, the 
need for parks to balance out the expected population growth has become 
critical in California. Federal, State, and local authorities have 
worked together successfully to create the highly successful Santa 
Monica Mountains National Recreation Area, the world's largest urban 
park, hemmed in on all sides by development. Park and recreational 
lands provide people with a vital refuge from urban life while 
preserving valuable habitat and wildlife. This bill enjoys strong 
support from local and state officials and I believe it will have 
strong bipartisan support as well.
  After the study called for in this bill is completed, the Secretary 
of Interior and Congress will be in a key position to determine whether 
the Rim of the Valley warrants national park status.
  I urge my colleagues to support this legislation.
                                 ______
                                 
      By Mr. KERRY (for himself, Mr. Santorum, Mr. Lieberman, Mr. Smith 
        of Oregon, Ms. Mikulski, Mr. Brownback, Mrs. Murray, and Mr. 
        Hutchinson):
  S. 2572. A bill to amend title VII of the Civil Rights Act of 1964 to 
establish provisions with respect to religious accommodation in 
employment, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. KERRY. Mr. President, I am extremely pleased to join with my 
colleague Senator Santorum today to introduce the Workplace Religious 
Freedom Act of 2002. Senators Lieberman, Gordon Smith, Murray, 
Brownback, Mikulski, and Hutchinson have all joined us as original 
cosponsors of this important legislation.
  The Workplace Religious Freedom Act would protect workers from on-
the-job discrimination related to religious beliefs and practices. It 
represents a milestone in the protection of the religious liberties of 
all workers.
  In 1972, Congress amended the Civil Rights Act of 1964 to require 
employers to reasonably accommodate an employee's religious practice or 
observance unless doing so would impose an undue hardship on the 
employer. This 1972 amendment, although completely appropriate, has 
been interpreted by the courts so narrowly as to place little restraint 
on an employer's refusal to provide religious accommodation. The 
Workplace Religious Freedom Act will restore to the religious 
accommodation provision the weight that Congress originally intended 
and help assure that employers have a meaningful obligation to 
reasonably accommodate their employees' religious practices.
  The restoration of this protection is no small matter. For many 
religiously observant Americans the greatest peril to their ability to 
carry out their religious faiths on a day-to-day basis may come from 
employers. I have heard accounts from around the country about a small 
minority of employers who will not make reasonable accommodation for 
employees to observe the Sabbath and other holy days or for employees 
who must wear religiously-required garb, such as a yarmulke, or for 
employees to wear clothing that meets religion-based modesty 
requirements.
  The refusal of an employer, absent undue hardship, to provide 
reasonable accommodation of a religious practice should be seen as a 
form of religious discrimination, as originally intended by Congress in 
1972. And religious discrimination should be treated fully as seriously 
as any other form of discrimination that stands between Americans and 
equal employment opportunities. Enactment of the Workplace Religious 
Freedom Act will constitute an important step toward ensuring that all 
members of society, whatever their religious beliefs and practices, 
will be protected from an invidious form of discrimination.
  Even after September 11, with a heightened sense of religious 
sensitivity among the American people, securing greater protections for 
the religious needs of employees is a major issue. In October 2001, the 
U.S. Supreme Court refused to hear an appeal from a Muslim woman who 
was pressured by her employer to stop wearing her head scarf. We must 
come together now to pass this bipartisan legislation, which is 
supported by a wide spectrum of religious organizations.
  It is important to recognize that, in addition to protecting the 
religious freedom of employees, this legislation protects employers 
from an undue burden. Employees would be allowed to take time off only 
if their doing so does not pose a significant difficulty or expense for 
the employer. This common sense definition of undue hardship is used in 
the ``Americans with Disabilities Act'' and has worked well in that 
context.
  We have little doubt that this bill is constitutional because it 
simply clarifies existing law on discrimination by private employers, 
strengthening the required standard for employers. This bill does not 
deal with behavior by State or Federal Governments or substantively 
expand 14th amendment rights.
  This bill is endorsed by a wide range of organizations including the 
Agudath Israel of America, American Jewish Committee, American Jewish 
Congress, Americans for Democratic Action, Anti-Defamation League, 
Baptist Joint Committee on Public Affairs, B'nai B'rith International, 
Central Conference of American Rabbis, Christian Legal Society, Church 
of Scientology, Council on Religious Freedom, Family Research Council, 
Friends Committee on National Legislation, General Board, United 
Methodist Church, General Conf. of Seventh Day Adventists, Guru Gobind 
Singh Foundation, Hadassah, International Assocition of Jewish Lawyers, 
International Commission on Freedom of Conscience, Jewish Council for 
Public Affairs, Na'amat USA, National Assoc. of Evangelicals, National 
Council of Churches of Christ, National Council of Jewish Women, 
National Jewish Democratic Council, National Sikh Center, North 
American Council for Muslim Women, Presbyterian Church, USA, Rabbinical 
Council of America, Republican Jewish Coalition, Southern Baptist 
Convention, Traditional Values Coalition, Union of American Hebrew 
Congregations, Union of Orthodox Jewish Congregations, United Church of 
Christ, and the United Synagogue of Conservative Judaism.
  I want to thank Senator Santorum for joining me to lead this effort. 
I look forward to working with him to pass this legislation so that all 
American workers can be assured of both equal employment opportunities 
and the ability to practice their religion.
                                 ______
                                 
      By Mr. REED (for himself, Ms. Collins, Mr. Sarbanes, Mr. Chafee, 
        Mr. Schumer, Mr. Akaka, Mr. Carper, Mr. Dodd, and Mr. Corzine):
  S. 2573. A bill to amend the McKinney-Vento Homeless Assistance Act 
to reauthorize the Act, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. REED. Mr. President, I rise today along with my colleagues, 
Senators Collins, Sarbanes, Chafee, Schumer, Akaka, Carper, Dodd, and 
Corzine to introduce a piece of legislation we believe establishes a 
framework for ending long-term homelessness in the United States. There 
is a growing consensus around the country that fifteen years after the 
passage of the McKinney-Vento Act, we now know how to help communities 
break the cycle of repeated and prolonged homelessness. Federal 
dollars, combined with local efforts, can help bring an end to this 
problem. The Community

[[Page S4866]]

Partnership to End Homelessness Act of 2002 is intended to realign the 
incentives in the McKinney-Vento Homeless Assistance Act so that 
communities are rewarded for initiatives that will prevent and end 
homelessness, instead of receiving Federal funding for programs that 
maintain the status quo.
  During the past year, the Urban Institute estimates that at least 2.3 
million, and perhaps as many as 3.5 million people, have been homeless. 
On any given day in the United States, at least 800,000 people are 
homeless, including about 200,000 children. Homelessness has an 
especially devastating impact on these children. If they are able to go 
to school, it is well documented that homeless children face increased 
challenges, such as learning disabilities and emotional and behavioral 
problems.
  This year's U.S. Conference of Mayors report on ``Hunger and 
Homelessness in America's Cities'' finds that requests for emergency 
shelter by families increased by 22 percent. Unfortunately, over half 
of all these requests for housing assistance went unmet. In my State, 
the Rhode Island shelter system provided more nights of shelter this 
past year than at any point in its history.
  Locally and nationally, several trends seem clear. First, despite the 
economic boom in the 1990s, homelessness has increased. Second, 
increasing numbers of families with children are being forced into our 
emergency shelter system. In March of this year, the Washington Post, 
reported that there had been a 25 percent rise in homelessness in 
Fairfax County, Virginia during the past four years, and most of that 
increase consisted of homeless families. Third, a relatively small 
number of long-term homeless persons continue to utilize a 
disproportionate number of the bed nights in our Nation's shelters.
  When it was created in 1987, the McKinney-Vento Homeless Assistance 
Act was intended to be an emergency federal response to the ``crisis'' 
of homelessness. Instead, it has become a safety net for low-income 
households who are inadequately served by mainstream programs such as 
Section 8 and Medicaid. Too often, mainstream programs are shifting the 
cost and responsibility for housing and a variety of support services 
to emergency homeless assistance programs.
  To reverse this trend, the Community Partnership to End Homelessness 
Act of 2002 would focus federal funds on projects and programs that are 
helping to prevent and end homelessness. This legislation also would 
allow maximum local creativity in addressing homelessness by 
consolidating multiple HUD McKinney-Vento programs into one program 
with a list of eligible activities.
  Our bill would also provide incentives for communities to build 
permanent housing for the disabled and for non-disabled families. It 
would encourage the creation of homelessness prevention programs, and 
it would promote comprehensive and inclusive local planning. Finally, 
it would require greater program accountability through the use of 
outcome-based performance evaluations.
  The Community Partnership to End Homelessness Act of 2002 is endorsed 
by the National Alliance to End Homelessness, the Corporation for 
Supportive Housing, Fannie Mae, Freddie Mac, the Local Initiatives 
Support Corporation, the National Equity Fund, Inc., the National 
Alliance for the Mentally Ill, the McAuley Institute and the Enterprise 
Foundation.
  We need to find the will and the resources to eradicate homelessness 
in this country. The Community Partnership to End Homelessness Act is 
only the beginning. The needs of homeless individuals and families fall 
within the jurisdiction of many federal departments and congressional 
committees. Thus, I believe additional legislation is going to be 
necessary in order to require Federal agencies such as HHS and the 
Department of Veterans Affairs to work with HUD in a more coordinated 
manner towards achieving this goal. I am committed to addressing this 
crisis, and I hope my colleagues will join us in supporting this bill 
and other homeless prevention efforts.
  I ask unanimous consent that the text of the Community Partnership to 
End Homelessness Act be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2573

       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 ``Community Partnership to End 
     Homelessness Act of 2002''.

     SEC. 2. FINDINGS AND PURPOSE.

       Section 102 of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11301) is amended to read as follows:

     ``SEC. 102. FINDINGS AND PURPOSE.

       ``(a) Findings.--Congress finds that--
       ``(1) the United States faces a crisis of individuals and 
     families who lack basic affordable housing and appropriate 
     shelter;
       ``(2) assistance from the Federal Government is an 
     important factor in the success of efforts by State and local 
     governments and the private sector to address the problem of 
     homelessness in a comprehensive manner;
       ``(3) there are several Federal Government programs to 
     assist persons experiencing homelessness, including programs 
     for individuals with disabilities, veterans, and youth;
       ``(4) homeless assistance programs must be evaluated on the 
     basis of their effectiveness in reducing homelessness and 
     transitioning individuals and families to permanent housing 
     and stability;
       ``(5) States and units of general local government 
     receiving Federal block grant and other Federal grant funds 
     must be evaluated on the basis of their effectiveness in--
       ``(A) implementing plans to appropriately discharge 
     individuals to and from mainstream service systems; and
       ``(B) reducing barriers to participation in mainstream 
     programs, as identified in--
       ``(i) a report by the General Accounting Office entitled 
     `Homelessness: Coordination and Evaluation of Programs Are 
     Essential', issued February 26, 1999; or
       ``(ii) a report by the General Accounting Office entitled 
     `Homelessness: Barriers to Using Mainstream Programs', issued 
     July 6, 2000;
       ``(6) an effective plan for reducing homelessness should 
     provide a comprehensive housing system (including permanent 
     housing and, as needed, transitional housing) that recognizes 
     that, while some individuals and families experiencing 
     homelessness attain economic viability and independence 
     utilizing transitional housing and then permanent housing, 
     others can reenter society directly through acquiring 
     permanent housing;
       ``(7) supportive housing activities include the provision 
     of permanent housing or transitional housing and appropriate 
     supportive services in an environment that can meet the 
     short-term or long-term needs of persons experiencing 
     homelessness as they reintegrate into mainstream society;
       ``(8) homeless housing and supportive services programs 
     within a community are most effective when they are developed 
     and operated as part of an inclusive, collaborative, locally 
     driven homeless planning process that involves as 
     decisionmakers persons experiencing homelessness, advocates 
     for persons experiencing homelessness, service organizations, 
     government officials, business persons, neighborhood 
     advocates, and other community members;
       ``(9) homelessness should be treated as a symptom of many 
     neighborhood and community problems, whose remedies require a 
     comprehensive approach integrating all available resources;
       ``(10) there are many private sector entities, particularly 
     nonprofit organizations, that have successfully operated 
     outcome-effective homeless programs;
       ``(11) Federal homeless assistance should supplement other 
     public and private funding provided by communities for 
     housing and supportive services for low-income households;
       ``(12) the Federal Government has a responsibility to 
     establish partnerships with State and local governments and 
     private sector entities to address comprehensively the 
     problems of homelessness; and
       ``(13) while the results of Federal programs targeted for 
     persons experiencing homelessness have been positive, the 
     multitude of such programs calls for unification and 
     simplification of the process by which nonprofit 
     organizations, State and local governments, and the private 
     sector apply for funds.
       ``(b) Purpose.--It is the purpose of this Act--
       ``(1) to provide funds for programs to assist individuals 
     and families in the transition from homelessness, and to 
     prevent homelessness for those vulnerable to homelessness;
       ``(2) to consolidate the separate homeless assistance 
     programs carried out under title IV (consisting of the 
     supportive housing program and related innovative programs, 
     the safe havens program, the section 8 assistance program for 
     single-room occupancy dwellings, the shelter plus care 
     program, and the rural homeless housing assistance program) 
     into a single program with specific eligible activities;

[[Page S4867]]

       ``(3) to allow flexibility and creativity in rethinking 
     solutions to homelessness, including alternative housing 
     strategies, outcome-effective service delivery, and the 
     involvement of persons experiencing homelessness in 
     decisionmaking regarding opportunities for their long-term 
     stability, growth, and well-being;
       ``(4) to ensure that multiple Federal agencies are involved 
     in the provision of housing, health care, human services, 
     employment, and education assistance to persons experiencing 
     homelessness, as appropriate for the missions of the 
     agencies, through the funding provided for implementation of 
     programs carried out under this Act and other programs 
     targeted for persons experiencing homelessness, and 
     mainstream funding, and to promote coordination among those 
     Federal agencies, including providing funding for an 
     Interagency Council on Homelessness to advance such 
     coordination;
       ``(5) to create a unified and performance-based process for 
     allocating and administering funds under title IV;
       ``(6) to encourage comprehensive, collaborative local 
     planning of housing and services programs for persons 
     experiencing homelessness; and
       ``(7) to focus the resources and efforts of the public and 
     private sectors on ending and preventing homelessness.''.

     SEC. 3. INTERAGENCY COUNCIL ON HOMELESSNESS.

       Title II of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11311 et seq.) is amended--
       (1) in section 202 (42 U.S.C. 11312)--
       (A) in subsection (a)--
       (i) by striking ``(16)'' and inserting ``(17)''; and
       (ii) by inserting after paragraph (15) the following:
       ``(16) The Commissioner of Social Security, or the designee 
     of the Commissioner.''; and
       (B) by adding at the end the following:
       ``(e) Administration.--The Assistant to the President for 
     Domestic Policy within the Executive Office of the President 
     shall oversee the functioning of the Interagency Council on 
     Homelessness to ensure Federal interagency collaboration and 
     program coordination to focus on preventing and ending 
     homelessness, to increase access to mainstream programs by 
     persons experiencing homelessness, to eliminate the barriers 
     to participation in those programs, as identified in a report 
     by the General Accounting Office entitled `Homelessness: 
     Barriers to Using Mainstream Programs', issued July 6, 2000, 
     and to implement a Federal plan to prevent and end 
     homelessness.'';
       (2) in section 203(a) (42 U.S.C. 11313(a))--
       (A) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively; and
       (B) by inserting after paragraph (5) the following:
       ``(6) develop mechanisms to ensure access by persons 
     experiencing homelessness to all Federal programs for which 
     the persons are eligible, and to verify collaboration among 
     recipients and project sponsors within a community that 
     receive Federal funding under programs targeted for persons 
     experiencing homelessness, and other programs for which 
     persons experiencing homelessness are eligible, including 
     programs identified by the General Accounting Office in the 
     February 1999 report entitled `Homelessness: Coordination and 
     Evaluation of Programs Are Essential' ''; and
       (3) by striking section 208 (42 U.S.C. 11318) and inserting 
     the following:

     ``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

        ``Of any amounts made available for any fiscal year to 
     carry out subtitles B and C of title IV, $1,000,000 shall be 
     allocated to the Assistant to the President for Domestic 
     Policy within the Executive Office of the President to carry 
     out this title.''.

     SEC. 4. HOUSING ASSISTANCE GENERAL PROVISIONS.

       Subtitle A of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11361 et seq.) is amended--
       (1) by striking the subtitle heading and inserting the 
     following:

                  ``Subtitle A--General Provisions'';

       (2)(A) by redesignating section 401 (42 U.S.C. 11361) as 
     section 403; and
       (B) by redesignating section 402 (42 U.S.C. 11362) as 
     section 406;
       (3) by inserting before section 403 (as redesignated in 
     paragraph (2)) the following:

     ``SEC. 401. DEFINITIONS.

       ``In this title:
       ``(1) Board.--The term `Board' means a Community Homeless 
     Assistance Planning Board that is a representative planning 
     body established in accordance with section 402.
       ``(2) Collaborative applicant.--The term `collaborative 
     applicant' means--
       ``(A) an entity, which may or may not be a Board, that 
     serves as the applicant for project sponsors who jointly 
     submit a single application for a grant under subtitle C with 
     the approval of, and in accordance with the collaborative 
     process established by, a Board, and, if awarded such grant, 
     receives such grant directly from the Secretary; or
       ``(B) an individual project sponsor who is an eligible 
     entity under subtitle C and submits an application for a 
     grant under subtitle C, with the approval of, and in 
     accordance with the collaborative process established by, a 
     Board, and, if awarded such grant, receives such grant 
     directly from the Secretary.
       ``(3) Collaborative application.--The term `collaborative 
     application' means an application for a grant under subtitle 
     C that--
       ``(A) satisfies section 422 (including containing the 
     information described in subsections (a) and (c) of section 
     426); and
       ``(B) is submitted to a Board and then to the Secretary by 
     a collaborative applicant.
       ``(4) Consolidated plan.--The term `Consolidated Plan' 
     means a comprehensive housing affordability strategy and 
     community development plan required in part 91 of title 24, 
     Code of Federal Regulations.
       ``(5) Eligible entity.--The term `eligible entity' means, 
     with respect to a subtitle, a public or private entity 
     eligible to receive directly grant amounts under that 
     subtitle.
       ``(6) Geographic area.--The term `geographic area' means a 
     State, metropolitan city, urban county, town, village, or 
     other nonentitlement area, or a combination or consortia of 
     such, in the United States, as described in section 106 of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     5306).
       ``(7) Homeless individual with a disability.--
       ``(A) In general.--The term `homeless individual with a 
     disability' means an individual who is homeless, as defined 
     in section 103 and has a disability that--
       ``(i)(I) is expected to be long-continuing or of indefinite 
     duration;
       ``(II) substantially impedes the individual's ability to 
     live independently;
       ``(III) could be improved by the provision of more suitable 
     housing conditions; and
       ``(IV) is a physical, mental, or emotional impairment, 
     including an impairment caused by alcohol or drug abuse;
       ``(ii) is a developmental disability, as defined in section 
     102 of the Developmental Disabilities Assistance and Bill of 
     Rights Act of 2000 (42 U.S.C. 15002); or
       ``(iii) is the disease of acquired immunodeficiency 
     syndrome or any condition arising from the etiologic agency 
     for acquired immunodeficiency syndrome.
       ``(B) Rule.--Nothing in clause (iii) of subparagraph (A) 
     shall be construed to limit eligibility under clause (i) or 
     (ii) of subparagraph (A).
       ``(8) Independently owned.--The term `independently owned', 
     used with respect to rental assistance, means assistance 
     provided pursuant to a contract that--
       ``(A) is between--
       ``(i) the recipient or a project sponsor; and
       ``(ii) an independent entity that--

       ``(I) is a private organization; and
       ``(II) owns or leases dwelling units; and

       ``(B) provides that rental assistance payments shall be 
     made to the independent entity and that eligible persons 
     shall occupy such assisted units.
       ``(9) Low-demand program.--The term `low-demand program' 
     means a program that does not require, but offers, in a non-
     coercive manner--
       ``(A)(i) health care services, mental health services, and 
     substance abuse treatment services; and
       ``(ii) other supportive services, which may include 
     medication management, education, counseling, job training, 
     and assistance in obtaining entitlement benefits or in 
     obtaining such supportive services; and
       ``(B) referrals for services described in subparagraph (A).
       ``(10) Metropolitan city; urban county; nonentitlement 
     area.--The terms `metropolitan city', `urban county', and 
     `nonentitlement area' have the meanings given such terms in 
     section 102(a) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5302(a)).
       ``(11) New.--The term `new', used with respect to housing, 
     means housing for which no assistance has been provided under 
     this title.
       ``(12) Operating costs.--The term `operating costs' means 
     expenses incurred by a recipient or project sponsor 
     operating--
       ``(A) transitional housing or permanent housing under this 
     title with respect to--
       ``(i) the administration, maintenance, repair, and security 
     of such housing;
       ``(ii) utilities, fuel, furnishings, and equipment for such 
     housing; or
       ``(iii) conducting an assessment under section 426(c)(2); 
     and
       ``(B) supportive housing, for homeless individuals with 
     disabilities or homeless families that include such an 
     individual, under this title with respect to--
       ``(i) the matters described in clauses (i), (ii), and (iii) 
     of subparagraph (A); and
       ``(ii) coordination of services as needed to ensure long-
     term housing stability.
       ``(13) Outpatient health services.--The term `outpatient 
     health services' means outpatient health care services, 
     mental health services, and outpatient substance abuse 
     treatment services.
       ``(14) Permanent housing.--The term `permanent housing' 
     includes permanent supportive housing.
       ``(15) Permanent housing development activities.--The term 
     `permanent housing development activities' means activities--
       ``(A) to construct, lease, rehabilitate, or acquire 
     structures to provide permanent housing;
       ``(B) involving tenant-based, independently owned, and 
     project-based flexible rental assistance for permanent 
     housing;
       ``(C) described in paragraphs (1) through (4) of section 
     423(a); or
       ``(D) involving the capitalization of a dedicated project 
     account from which payments are allocated for rental 
     assistance and operating costs of permanent housing.

[[Page S4868]]

       ``(16) Private nonprofit organization.--The term `private 
     nonprofit organization' means an organization--
       ``(A) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       ``(B) that has a voluntary board;
       ``(C) that has an accounting system, or has designated a 
     fiscal agent in accordance with requirements established by 
     the Secretary; and
       ``(D) that practices nondiscrimination in the provision of 
     assistance.
       ``(17) Project.--The term `project', used with respect to 
     activities carried out under subtitle C, means eligible 
     activities described in section 423(a), undertaken pursuant 
     to a specific endeavor, such as serving a particular 
     population or providing a particular resource.
       ``(18) Project-based.--The term `project-based', used with 
     respect to rental assistance, means assistance provided 
     pursuant to a contract that--
       ``(A) is between--
       ``(i) the recipient or a project sponsor; and
       ``(ii) an owner of a structure that exists as of the date 
     the contract is entered into; and
       ``(B) provides that rental assistance payments shall be 
     made to the owner and that the units in the structure shall 
     be occupied by eligible persons for not less than the term of 
     the contract.
       ``(19) Project sponsor.--The term `project sponsor', used 
     with respect to proposed eligible activities, means the 
     organization directly responsible for carrying out the 
     proposed eligible activities.
       ``(20) Recipient.--Except as used in subtitle B, the term 
     `recipient' means an eligible entity who--
       ``(A) submits an application for a grant under section 422 
     that is approved by the Secretary;
       ``(B) receives the grant directly from the Secretary to 
     support approved projects described in the application; and
       ``(C)(i) serves as a project sponsor for the projects; or
       ``(ii) awards the funds to project sponsors to carry out 
     the projects.
       ``(21) Safe haven.--
       ``(A) In general.--The term `safe haven' means a facility--
       ``(i) that provides 24-hour residence for an unspecified 
     duration for persons who, on entry to the facility, are 
     unwilling or unable to participate in mental health or 
     substance abuse treatment programs, or to receive other 
     supportive services;
       ``(ii) that provides private or semi-private 
     accommodations;
       ``(iii) that may provide for the common use of kitchen 
     facilities, dining rooms, and bathrooms;
       ``(iv) that may provide supportive services, on a drop-in 
     basis, to eligible persons who are not residents; and
       ``(v) in which overnight occupancy is limited to no more 
     than 25 persons.
       ``(B) Rules.--
       ``(i) Supplemental security income.--For purposes of the 
     program carried out under title XVI of the Social Security 
     Act (42 U.S.C. 1381 et seq.)--

       ``(I) no individual living in a facility described in 
     subparagraph (A) and authorized under this title shall be 
     considered to be an inmate of a public institution (as 
     provided in section 1611(e)(1)(A) of the Social Security Act 
     (42 U.S.C. 1382(e)(1)(A))); and
       ``(II) no individual living in a facility described in 
     subparagraph (A) and authorized under this title shall have 
     benefits under title XVI of the Social Security Act reduced 
     or terminated because of the receipt of support and 
     maintenance (as provided in section 1612(a)(2)(A) of the 
     Social Security Act (42 U.S.C. 1382a(a)(2)(A)), to the extent 
     such support and maintenance is received as a result of 
     residence in the facility.

       ``(ii) Medicaid assistance.--For purposes of the program 
     carried out under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.)--

       ``(I) a facility described in subparagraph (A) and 
     authorized under this title shall not be considered to be a 
     hospital, nursing facility, institution for mental diseases 
     (as defined in section 1905(i) of the Social Security Act (42 
     U.S.C. 1396d(i))), or any other inpatient facility; and
       ``(II) an individual residing in a facility described in 
     subparagraph (A) and authorized under this title shall not be 
     denied eligibility for assistance under such title because of 
     residency in the facility.

       ``(22) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(23) Seriously mentally ill.--The term `seriously 
     mentally ill' means having a severe and persistent mental 
     illness or emotional impairment that seriously limits a 
     person's ability to live independently.
       ``(24) Solo applicant.--The term `solo applicant' means an 
     entity that is an eligible entity, directly submits an 
     application for a grant under subtitle C to the Secretary, 
     and, if awarded such grant, receives such grant directly from 
     the Secretary.
       ``(25) State.--Except as used in subtitle B, the term 
     `State' means each of the several States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands.
       ``(26) Supportive services.--The term `supportive services' 
     means the services described in section 425.
       ``(27) Tenant-based.--The term `tenant-based', used with 
     respect to rental assistance, means assistance that allows an 
     eligible person to select a housing unit in which such person 
     will live using rental assistance provided under subtitle C, 
     except that if necessary to assure that the provision of 
     supportive services to a person participating in a program is 
     feasible, a recipient or project sponsor may require that the 
     person live--
       ``(A) in a particular structure or unit for not more than 
     the first year of the participation; and
       ``(B) within a particular geographic area for the full 
     period of the participation, or the period remaining after 
     the period referred to in subparagraph (A).
       ``(28) Transitional housing.--The term `transitional 
     housing' has the meaning given the term in section 424(b), 
     and includes transitional supportive housing.

     ``SEC. 402. COMMUNITY HOMELESS ASSISTANCE PLANNING BOARDS.

       ``(a) Boards.--A Board shall be established for a 
     geographic area by the relevant parties in that geographic 
     area, or designated for a geographic area by the Secretary in 
     accordance with subsection (c), to lead a collaborative 
     planning process to design, execute, and evaluate programs, 
     policies, and practices to prevent and end homelessness.
       ``(b) Membership.--A Board established under subsection (a) 
     shall be composed of persons--
       ``(1) from a particular geographic area;
       ``(2) not less than 51 percent of whom are--
       ``(A) persons who are experiencing or have experienced 
     homelessness (with not fewer than 2 persons being individuals 
     who are experiencing or have experienced homelessness);
       ``(B) persons who act as advocates for the diverse 
     subpopulations of persons experiencing homelessness; and
       ``(C) persons or representatives of organizations who 
     provide assistance to the variety of individuals and families 
     experiencing homelessness; and
       ``(3) the remainder of whom are selected from among--
       ``(A) government officials, particularly those officials 
     responsible for administering funding under programs targeted 
     for persons experiencing homelessness, and other programs for 
     which persons experiencing homelessness are eligible, 
     including programs identified by the General Accounting 
     Office in the February 1999 report entitled `Homelessness: 
     Coordination and Evaluation of Programs Are Essential';
       ``(B) members of the business community; and
       ``(C) members of neighborhood advocacy organizations.
       ``(c) Existing Planning Bodies.--The Secretary may 
     designate an entity to be a Board if such entity has, prior 
     to the date of enactment of the Community Partnership to End 
     Homelessness Act of 2002, engaged in coordinated, 
     comprehensive local homeless housing and services planning 
     and applied for Federal funding to provide homeless 
     assistance.
       ``(d) Remedial Action.--If the Secretary finds that a Board 
     for a geographic area does not meet the requirements of this 
     section, the Secretary may take remedial action to ensure 
     fair distribution of grant amounts under subtitle C to 
     eligible entities within that area. Such measures may include 
     designating another body as a Board or permitting eligible 
     entities to apply directly for grants.
       ``(e) Construction.--Nothing in this section shall be 
     construed to displace conflict of interest or government fair 
     practices laws, or their equivalent, that govern applicants 
     for grant amounts under subtitles B and C.
       ``(f) Duties.--A Board established under subsection (a) 
     shall--
       ``(1)(A) design a collaborative process, established 
     jointly and complied with by its members, for evaluating, 
     reviewing, and prioritizing projects and applications 
     submitted by eligible entities under subtitles B and C, in 
     such a manner as to ensure that the entities further the goal 
     of preventing and ending homelessness in the geographic area 
     involved;
       ``(B)(i)(I) review relevant policies and practices (in 
     place and planned) of public and private entities in the 
     geographic area served by the Board to determine if the 
     policies and practices further or impede the goal described 
     in subparagraph (A);
       ``(II) in conducting the review, give priority to the 
     review of--
       ``(aa) the discharge planning and service termination 
     policies and practices of publicly funded facilities or 
     institutions (such as health care or treatment facilities or 
     institutions, foster care or youth facilities, or 
     correctional institutions), and entities carrying out 
     publicly funded programs and systems of care (such as health 
     care or treatment programs, State programs funded under part 
     A of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) (relating to Temporary Assistance for Needy Families), 
     foster care or youth programs, or correctional programs), to 
     ensure that such a discharge or termination does not result 
     in immediate homelessness for the persons involved;
       ``(bb) the access and utilization policies and practices of 
     the entities carrying out mainstream programs, as identified 
     in the 2 reports described in section 102(a)(5)(B), to ensure 
     that persons experiencing homelessness are able to access and 
     utilize the programs; and
       ``(cc) local policies and practices relating to zoning and 
     enforcement of local statutes,

[[Page S4869]]

     to ensure that the policies and practices allow reasonable 
     inclusion and distribution in the geographic area of special 
     needs populations and families with children; and
       ``(III) in conducting the review, determine the 
     modifications and corrective actions that need to be taken, 
     and by whom, to ensure that the relevant policies and 
     practices do not stimulate, or prolong, homelessness in the 
     geographic area;
       ``(ii) inform the entities of the determinations described 
     in clause (i); and
       ``(iii) once every 3 years, prepare for inclusion in any 
     application reviewed by the Board and submitted to the 
     Secretary under section 422, the determinations described in 
     clause (i), in the form of an exhibit entitled `Assessment of 
     Relevant Policies and Practices, and Needed Corrective 
     Actions to End and Prevent Homelessness'; and
       ``(C) if the Board designs and carries out the projects, 
     design and carry out the projects in such a manner as to 
     further the goal described in subparagraph (A);
       ``(2) require, consistent with the Government Performance 
     and Results Act of 1993 and amendments made by that Act, that 
     recipients and project sponsors who are funded by grants 
     received under such subtitles implement and maintain an 
     outcome-based evaluation of their projects that measures 
     effective and timely delivery of housing or services and 
     whether provision of such housing or services results in 
     preventing or ending homelessness for the persons that such 
     recipients and project sponsors serve;
       ``(3) require, consistent with the Government Performance 
     and Results Act of 1993 and amendments made by that Act, 
     outcome-based evaluation of the Board's homeless assistance 
     planning process to measure the Board's performance in 
     preventing or ending the homelessness of persons in the 
     Board's geographic area; and
       ``(4) participate in the Consolidated Plan for the 
     geographic area served by the Board.'';
       (4) by inserting after section 403 (as redesignated in 
     paragraph (2)) the following:

     ``SEC. 404. TECHNICAL ASSISTANCE.

       ``(a) In General.--The Secretary shall provide technical 
     assistance to--
       ``(1) States, metropolitan cities, urban counties, and 
     counties that are not urban counties, that have not applied 
     for, or have failed to receive, funding under this title, in 
     order to implement effective planning processes for 
     preventing and ending homelessness and to improve their 
     capacity to prepare collaborative applications; and
       ``(2) Boards or their predecessor homeless planning bodies 
     in States, metropolitan cities, urban counties, and counties 
     that are not urban counties, that have not applied for, or 
     have failed to receive, funding under this title, in order to 
     improve their capacity to prepare collaborative applications.
       ``(b) Reservation.--The Secretary shall reserve not more 
     than 1 percent (and not more than $12,000,000) of the funds 
     made available for any fiscal year for carrying out subtitles 
     B and C, to provide technical assistance under subsection (a) 
     and to develop and maintain a client-level management 
     information system to assist in directing resources for the 
     programs carried out under those subtitles to the activities 
     that can most effectively prevent and end homelessness.

     ``SEC. 405. PERFORMANCE REPORTS.

       ``(a) In General.--A Board shall submit to the Secretary an 
     annual performance report regarding the activities carried 
     out with grant amounts received under subtitles B and C in 
     the geographic area served by the Board, at such time and in 
     such manner as the Secretary determines to be reasonable.
       ``(b) Content.--The performance report described in 
     subsection (a) shall--
       ``(1) describe the number of persons provided homelessness 
     prevention assistance (including the number of such persons 
     who were discharged or whose services were terminated as 
     described in section 422(d)(2)(B)(ii)(I)(bb)), and the number 
     of individuals and families experiencing homelessness who 
     were provided shelter, housing, or supportive services, with 
     the grant amounts awarded in the fiscal year prior to the 
     fiscal year in which the report was submitted, including 
     measurements of the number of persons experiencing 
     homelessness who--
       ``(A) entered permanent housing, and the length of time 
     such persons resided in that housing, if known;
       ``(B) entered transitional housing, and the length of time 
     such persons resided in that housing, if known;
       ``(C) obtained or retained jobs;
       ``(D) increased their income, including increasing income 
     through the receipt of government benefits;
       ``(E) received mental health or substance abuse treatment 
     in an institutional setting and now receive that assistance 
     in a less restrictive, community-based setting;
       ``(F) received additional education, vocational or job 
     training, or employment assistance services; and
       ``(G) received additional physical, mental, or emotional 
     health care;
       ``(2) estimate the number of persons experiencing 
     homelessness in the geographic area served by the Board who 
     are eligible for, but did not receive, services, housing, or 
     other assistance through the programs funded under subtitles 
     B and C in the prior fiscal year;
       ``(3) indicate the accomplishments achieved within the 
     geographic area that involved the use of the grant amounts 
     awarded in the prior fiscal year, regarding efforts to 
     coordinate services and programs within the geographic area;
       ``(4) indicate the accomplishments achieved within the 
     geographic area to--
       ``(A) increase access by persons experiencing homelessness 
     to programs that are not targeted for persons experiencing 
     homelessness (but for which persons experiencing homelessness 
     are eligible), including mainstream programs, as identified 
     in the 2 reports described in section 102(a)(5)(B); and
       ``(B) prevent the homelessness of persons discharged from 
     publicly funded institutions or systems of care (such as 
     health care facilities, foster care or other youth facilities 
     or systems of care, institutions or systems of care relating 
     to the temporary assistance to needy families program 
     established under part A of title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.), and corrections programs and 
     institutions);
       ``(5) describe how the Board and other involved public and 
     private entities within the geographic area will incorporate 
     their experiences in the prior fiscal year into the programs 
     and process that the Board and entities will implement during 
     the next fiscal year, including describing specific 
     strategies to improve their performance outcomes;
       ``(6) assess the consistency and coordination between the 
     programs funded under subtitles B and C in the prior fiscal 
     year and the Consolidated Plan;
       ``(7) include updates to the exhibits described in section 
     402(f)(1)(B)(iii) that were included in applications--
       ``(A) submitted under section 422 by applicants from the 
     geographic area; and
       ``(B) approved by the Secretary; and
       ``(8) provide such other information as the Secretary finds 
     relevant to assessing performance, including performance on 
     success measures that are risk-adjusted to factors related to 
     the circumstances of the population served.
       ``(c) Waiver.--The Secretary may grant a waiver to any 
     Board that is unable to provide information required by 
     subsection (b). Such Board shall submit a plan to provide 
     such information within a reasonable period of time.''; and
       (5) by inserting after section 406 (as redesignated in 
     paragraph (2)) the following:

     ``SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out 
     title II and this title $1,600,000,000 for fiscal year 2003 
     and such sums as may be necessary for fiscal years 2004, 
     2005, 2006, and 2007.''.

     SEC. 5. EMERGENCY SHELTER GRANTS PROGRAM.

       Subtitle B of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11371 et seq.) is amended--
       (1) by striking section 412 (42 U.S.C. 11372) and inserting 
     the following:

     ``SEC. 412. GRANT ASSISTANCE.

       ``The Secretary shall make grants to States and local 
     governments (and to private nonprofit organizations providing 
     assistance to persons experiencing homelessness, in the case 
     of grants made with reallocated amounts) for the purpose of 
     carrying out activities described in section 414.

     ``SEC. 412A. AMOUNT AND ALLOCATION OF ASSISTANCE.

       ``(a) In General.--Of the amount made available to carry 
     out this subtitle and subtitle C for a fiscal year, the 
     Secretary shall allocate nationally not more than 15 percent 
     of such amount for activities described in section 414.
       ``(b) Allocation.--An entity that receives a grant under 
     section 412, and serves an area that includes 1 or more 
     geographic areas (or portions of such areas) served by Boards 
     that submit applications under subtitle C, shall allocate the 
     funds made available through the grant to carry out 
     activities described in section 414, in consultation with the 
     Boards.'';
       (2) in section 413(b) (42 U.S.C. 11373(b)), by striking 
     ``amounts appropriated'' and all that follows through ``for 
     any'' and inserting ``amounts appropriated under section 407 
     and made available to carry out this subtitle for any'';
       (3) by striking section 414 (42 U.S.C. 11374) and inserting 
     the following:

     ``SEC. 414. ELIGIBLE ACTIVITIES.

       ``Assistance provided under section 412 may be used for the 
     following activities:
       ``(1) The renovation, major rehabilitation, or conversion 
     of buildings to be used as emergency shelters.
       ``(2) The provision of essential services, including 
     services concerned with employment, health, or education, 
     family support services for homeless youth, alcohol or drug 
     abuse prevention or treatment, or mental health treatment, if 
     such essential services have not been provided by the local 
     government during any part of the immediately preceding 12-
     month period, or the use of assistance under this subtitle 
     would complement the provision of those essential services.
       ``(3) Maintenance, operation insurance, provision of 
     utilities, and provision of furnishings.''; and
       (4) by repealing sections 417 and 418 (42 U.S.C. 11377, 
     11378).

     SEC. 6. HOMELESS ASSISTANCE PROGRAM.

       Subtitle C of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11381 et seq.) is amended--
       (1) by striking the subtitle heading and inserting the 
     following:

[[Page S4870]]

              ``Subtitle C--Homeless Assistance Program'';

       (2) by striking sections 421 through 423 (42 U.S.C. 11381 
     et seq.) and inserting the following:

     ``SEC. 421. PURPOSES.

       ``The purposes of this subtitle are--
       ``(1) to promote the development of transitional and 
     permanent housing--
       ``(A) through the creation and operation of new housing 
     stock, and the leasing or operation of housing that is not 
     new housing stock; and
       ``(B) by promoting the provision of very low-cost housing 
     to persons experiencing homelessness who are unwilling or 
     unable to participate in mental health or substance abuse 
     treatment programs, or to receive other supportive services;
       ``(2) to promote the provision of needed housing-related 
     supportive services to assist persons experiencing 
     homelessness in the transition from homelessness, enabling 
     the persons to live as independently as possible; and
       ``(3) to promote the implementation of activities that can 
     prevent vulnerable individuals and families from becoming 
     homeless.

     ``SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM.

       ``(a) Eligible Applicant.--In this section, the term 
     `eligible applicant' means a collaborative applicant or solo 
     applicant.
       ``(b) Projects.--The Secretary shall award grants to 
     eligible applicants to carry out homeless assistance and 
     prevention projects.
       ``(c) Notification of Funding Availability.--The Secretary 
     shall release a Notification of Funding Availability for 
     grants awarded under this subtitle for a fiscal year not 
     later than 3 months after the date of enactment of the 
     appropriate Act making appropriations for the Department of 
     Housing and Urban Development for the fiscal year.
       ``(d) Applications.--
       ``(1) In general.--To receive a grant under subsection (b), 
     an eligible applicant shall submit an application for the 
     grant to a Board in accordance with the collaborative process 
     established by the Board, as described in section 402, and 
     have such application reviewed, approved, and prioritized by 
     such Board, except that a solo applicant may submit such 
     application to the Secretary without participating in such 
     process if the applicant includes information in such 
     application regarding why the applicant has not participated.
       ``(2) Submission to the secretary.--To receive the grant, 
     after receiving approval from the Board for the application, 
     the eligible applicant shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require, and containing--
       ``(A) the application submitted to the Board; and
       ``(B) other information that, in addition to including the 
     information described in subsections (a) and (c) of section 
     426, shall--
       ``(i) describe the establishment and function of the Board, 
     including--

       ``(I) the nomination and selection process for such Board, 
     including the names and affiliations of all such Board 
     members;
       ``(II) all meetings held by such Board in preparing the 
     collaborative application, including identification of those 
     meetings that were public; and
       ``(III) all meetings between Board representatives, and 
     persons responsible for administering the Consolidated Plan;

       ``(ii) outline the range of housing and service programs 
     available to persons experiencing homelessness or imminently 
     at risk of experiencing homelessness and describe the unmet 
     needs that remain in the geographic area for which the 
     collaborative applicant seeks funding regarding--

       ``(I) prevention activities, including providing assistance 
     in--

       ``(aa) making mortgage, rent, or utility payments; or
       ``(bb) accessing permanent housing and transitional housing 
     for individuals (and families that include the individuals) 
     who are being discharged from a publicly funded facility, 
     program, or system of care, or whose services (from such a 
     facility, program, or system of care) are being terminated;

       ``(II) outreach activities to assess the needs and 
     conditions of persons experiencing homelessness;
       ``(III) emergency shelters, including the supportive and 
     referral services the shelters provide;
       ``(IV) transitional housing with, as needed, appropriate 
     supportive services to help persons experiencing homelessness 
     who are not yet able or prepared to make the transition to 
     permanent housing and independent living;
       ``(V) permanent housing to help meet the long-term needs of 
     individuals and families experiencing homelessness; and
       ``(VI) needed supportive services;

       ``(iii) prioritize the projects for which the collaborative 
     applicant seeks funding according to the unmet needs in the 
     fiscal year in which the applicant submits the application as 
     described in clause (ii);
       ``(iv) identify funds from private and public sources, 
     other than funds received under subtitles B and C, that the 
     State, units of general local government, recipients, project 
     sponsors, and others will use for homelessness prevention, 
     emergency shelter, supportive services, transitional housing, 
     and permanent housing, that will be integrated with the 
     assistance provided under subtitles B and C;
       ``(v) identify funds provided by the State and units of 
     general local government under programs targeted for persons 
     experiencing homelessness, and other programs for which 
     persons experiencing homelessness are eligible, including 
     programs identified by the General Accounting Office in the 
     February 1999 report entitled `Homelessness: Coordination and 
     Evaluation of Programs Are Essential';
       ``(vi) explain--

       ``(I) how the collaborative applicant will meet the housing 
     and service needs of individuals and families experiencing 
     homelessness in the applicant's community; and
       ``(II) the strategy of the State, units of general local 
     government, and private entities in the geographic area over 
     the next 5 years to prevent and end homelessness, including, 
     as part of that strategy, a work plan for the applicable 
     fiscal years;

       ``(vii) report on the outcome-based performance of the 
     homeless programs within the geographic area served by the 
     collaborative applicant that were funded under this title in 
     the fiscal year prior to the fiscal year in which the 
     application is submitted;
       ``(viii) include any relevant required agreements under 
     subtitle C;
       ``(ix) contain a certification of consistency with the 
     Consolidated Plan pursuant to section 403; and
       ``(x)(I) in the case of a collaborative applicant, include 
     an exhibit described in section 402(f)(1)(B)(iii) and 
     prepared by the Board in accordance with that section; or
       ``(II) in the case of a solo applicant, include an exhibit 
     described in section 402(f)(1)(B)(iii) and prepared by the 
     applicant.
       ``(3) Announcement of awards.--The Secretary shall 
     announce, not later than 5 months after the last date for the 
     submission of applications described in this subsection for a 
     fiscal year, the grants awarded under subsection (b) for that 
     fiscal year.
       ``(4) Obligation, distribution, and utilization of funds.--
       ``(A) Requirements for obligation.--
       ``(i) In general.--Not later than 9 months after the 
     announcement referred to in paragraph (3), each recipient or 
     project sponsor seeking the obligation of funds for a grant 
     announced under paragraph (3) shall meet all requirements for 
     the obligation of those funds, including site control, 
     matching funds, and environmental review requirements, except 
     as provided in clause (ii).
       ``(ii) Acquisition, rehabilitation, or construction.--Not 
     later than 15 months after the announcement referred to in 
     paragraph (3), each recipient or project sponsor seeking the 
     obligation of funds for acquisition of housing, 
     rehabilitation of housing, or construction of new housing for 
     a grant announced under paragraph (3) shall meet all 
     requirements for the obligation of those funds, including 
     site control, matching funds, and environmental review 
     requirements.
       ``(iii) Extensions.--At the discretion of the Secretary, 
     and in compelling circumstances, the Secretary may extend the 
     date by which a recipient or project sponsor shall meet the 
     requirements described in clause (i) if the Secretary 
     determines that compliance with the requirements was delayed 
     due to factors beyond the reasonable control of the recipient 
     or project sponsor. Such factors may include difficulties in 
     obtaining site control for a proposed project, completing the 
     process of obtaining secure financing for the project, or 
     completing the technical submission requirements for the 
     project.
       ``(B) Obligation.--Not later than 45 days after a recipient 
     or project sponsor meets the requirements described in 
     subparagraph (A)(i), the Secretary shall obligate the funds 
     for the grant involved.
       ``(C) Distribution.--A recipient that receives funds 
     through such a grant--
       ``(i) shall distribute the funds to project sponsors (in 
     advance of expenditures by the project sponsors); and
       ``(ii) shall distribute the appropriate portion of the 
     funds to a project sponsor not later than 21 days after 
     receiving a request for such distribution from the project 
     sponsor.
       ``(e) Selection Criteria.--In determining whether to award 
     a grant to an applicant under subsection (b), the Secretary 
     shall consider, in addition to criteria described in section 
     426(b)--
       ``(1) the inclusiveness of the Board involved and the 
     process the Board administered, if applicable;
       ``(2) the comprehensiveness and coordination of the 
     homelessness prevention, housing, and services programs 
     (including discharge planning and service termination 
     protocols) within the geographic area served by the Board;
       ``(3) the extent to which prioritized programs meet unmet 
     needs;
       ``(4) the capacity of the geographic area to leverage 
     funding from other public and private sources;
       ``(5) the long-term strategy of the applicable States and 
     units of general local government to combat, prevent, and end 
     homelessness;
       ``(6) the performance of the homelessness prevention, 
     housing, and services programs funded in the fiscal year 
     prior to the date of submission of the application;
       ``(7) the need for services in the geographic area;
       ``(8) the plan by which--
       ``(A) access to appropriate permanent housing will be 
     secured if the proposed project does not include permanent 
     housing; and

[[Page S4871]]

       ``(B) access to outcome-effective supportive services will 
     be secured for residents or consumers involved in the project 
     who are willing to use the services;
       ``(9) the evaluation plan for evaluations of the project, 
     which--
       ``(A) will use periodically collected information and 
     analysis to determine whether the project has resulted in 
     enhanced stability and well-being of the residents or 
     consumers served by the project;
       ``(B) will include evaluations obtained directly from the 
     individuals or families served by the project; and
       ``(C) will be submitted by the recipient for the grant to 
     the Board for review and use in assessments, conducted by the 
     Board consistent with the Board's duty to ensure effective 
     outcomes that contribute to the goal of preventing and ending 
     homelessness in the geographic area served by the Board; and
       ``(10) any other criteria the Secretary determines to be 
     reasonably appropriate.
       ``(f) Notification of Pro Rata Estimated Grant Amounts.--
       ``(1) Notice.--The Secretary shall inform each Board, at a 
     time concurrent with the release of the Notice of Funding 
     Availability for the grants, of the pro rata estimated grant 
     amount under this subtitle for the geographic area 
     represented by the Board.
       ``(2) Amount.--
       ``(A) Basis.--Such estimated grant amount shall be based on 
     a percentage of the total funds available, or estimated to be 
     available, to carry out this subtitle for any fiscal year 
     that is equal to the percentage of the total amount available 
     for section 106 of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5306) for the prior fiscal year that--
       ``(i) was allocated to all metropolitan cities and urban 
     counties within the geographic area represented by the Board; 
     or
       ``(ii) would have been distributed to all counties within 
     such geographic area that are not urban counties, if the 30 
     percent portion of the allocation to the State involved (as 
     described in subsection (d)(1) of that section 106) for that 
     year had been distributed among the counties that are not 
     urban counties in the State in accordance with the formula 
     specified in that subsection (with references in that 
     subsection to nonentitlement areas considered to be 
     references to those counties).
       ``(B) Rule.--In computing the estimated grant amount, the 
     Secretary shall adjust the estimated grant amount determined 
     pursuant to subparagraph (A) to ensure that--
       ``(i) 75 percent of the total funds available, or estimated 
     to be available, to carry out this subtitle for any fiscal 
     year are allocated to the metropolitan cities and urban 
     counties that received a direct allocation of funds under 
     section 413 for the prior fiscal year; and
       ``(ii) 25 percent of the total funds available, or 
     estimated to be available, to carry out this subtitle for any 
     fiscal year are allocated--

       ``(I) to the metropolitan cities and urban counties that 
     did not receive a direct allocation of funds under section 
     413 for the prior fiscal year; and
       ``(II) to counties that are not urban counties.

       ``(C) Combinations or consortia.--For Boards that represent 
     a combination or consortium of cities or counties, the 
     estimated grant amount shall be the sum of the estimated 
     grant amounts for the cities or counties represented by the 
     Board.
       ``(g) Appeals.--
       ``(1) In general.--Not later than 3 months after the date 
     of enactment of the Community Partnership to End Homelessness 
     Act of 2002, the Secretary shall establish a timely appeal 
     procedure for grant amounts awarded or denied under this 
     subtitle pursuant to a collaborative application or solo 
     application for funding.
       ``(2) Process.--The Secretary shall ensure that the 
     procedure permits appeals submitted by Boards, entities 
     carrying out homeless housing and services projects 
     (including emergency shelters and homelessness prevention 
     programs), homeless planning bodies not designated by the 
     Secretary as Boards, and all other applicants under this 
     subtitle.
       ``(h) Solo Applicants.--A solo applicant may submit an 
     application to the Secretary for a grant under subsection (b) 
     and be awarded such grant on the same basis as such grants 
     are awarded to other applicants based on the criteria 
     described in subsection (e). The Secretary may award such 
     grants directly to such applicants in a manner determined to 
     be appropriate by the Secretary.

     ``SEC. 423. ELIGIBLE ACTIVITIES.

       ``(a) In General.--The Secretary may award grants to 
     qualified applicants under section 422 to carry out homeless 
     assistance and prevention projects that consist of 1 or more 
     of the following eligible activities:
       ``(1) Construction of new housing units to provide 
     transitional or permanent housing.
       ``(2) Acquisition or rehabilitation of a structure to 
     provide transitional or permanent housing, other than 
     emergency shelter, or to provide supportive services.
       ``(3) Leasing of property, or portions of property, not 
     owned by the recipient or project sponsor involved, for use 
     in providing transitional or permanent housing, or providing 
     supportive services.
       ``(4) Provision of rental assistance to provide 
     transitional or permanent housing to eligible persons. The 
     rental assistance may include tenant-based, project-based, or 
     independently owned rental assistance.
       ``(5) Payment of operating costs for housing units assisted 
     under this subtitle.
       ``(6) Supportive services, except that beginning 3 years 
     after the date of enactment of the Community Partnership to 
     End Homelessness Act of 2002, for both new and renewal 
     projects, the only allowable supportive services will be case 
     management, life skills training, outreach, housing 
     counseling, and other services determined by the Secretary 
     (either at the Secretary's initiative or on the basis of 
     adequate justification by an applicant) to be directly 
     relevant to allowing persons experiencing homelessness to 
     access and retain housing.
       ``(7) Homeless management information services.
       ``(8) Monitoring and evaluation activities related to--
       ``(A) measuring the outcomes of a Board's homeless 
     assistance planning process for preventing and ending 
     homelessness; and
       ``(B)(i) the effective and timely implementation of 
     specific projects funded under this subtitle, relative to 
     projected outcomes; and
       ``(ii) in the case of a housing project funded under this 
     subtitle, compliance with appropriate standards of housing 
     quality and habitability as determined by the Secretary.
       ``(9) Prevention activities, including--
       ``(A) providing financial assistance to individuals or 
     families who have received eviction notices, foreclosure 
     notices, or notices of termination of utility services if, in 
     the case of such an individual or family--
       ``(i) the inability of the individual or family to make the 
     required payments is due to a sudden reduction in income;
       ``(ii) the assistance is necessary to avoid the eviction, 
     foreclosure, or termination of services; and
       ``(iii) there is a reasonable prospect that the individual 
     or family will be able to resume the payments within a 
     reasonable period of time; and
       ``(B) carrying out relocation activities (including 
     providing security or utility deposits, rental assistance for 
     a final month at a location, assistance with moving costs, or 
     rental assistance for not more than 6 months) for moving into 
     transitional or permanent housing, individuals, and families 
     that include such individuals--
       ``(i) who lack housing;
       ``(ii) who are being discharged from a publicly funded 
     acute care or long-term care facility, program, or system of 
     care, or whose services (from such a facility, program, or 
     system of care) are being terminated; and
       ``(iii) who have plans, developed collaboratively by the 
     public entities involved and the individuals and families, 
     for securing or maintaining housing after any funding 
     provided under this subtitle is utilized.
       ``(b) Eligibility for Funds for Prevention Activities.--To 
     be eligible to receive grant funds under section 422 to carry 
     out the prevention activities described in subsection (a)(9), 
     an applicant shall submit an application to the Secretary 
     under section 422 that shall include a certification in 
     which--
       ``(1) the relevant public entities in the geographic area 
     involved certify compliance with subsection (c); and
       ``(2) the publicly funded institutions, facilities, and 
     systems of care in the geographic area certify that the 
     institutions, facilities, and systems of care will take, and 
     fund directly, all reasonable measures to ensure that the 
     institutions, facilities, and systems of care do not 
     discharge individuals into homelessness.
       ``(c) Supplement, Not Supplant.--Funds appropriated under 
     section 407 and made available for prevention activities 
     described in subsection (a)(9) shall be used to supplement 
     and not supplant other Federal, State, and local public funds 
     used for homelessness prevention.
       ``(d) Use Restrictions.--
       ``(1) Acquisition, rehabilitation, and new construction.--A 
     project that consists of activities described in paragraph 
     (1) or (2) of subsection (a) shall be operated for the 
     purpose specified in the application submitted for the 
     project under section 422 for not less than 20 years.
       ``(2) Other activities.--A project that consists of 
     activities described in any of paragraphs (3) through (9) of 
     subsection (a) shall be operated for the purpose specified in 
     the application submitted for the project under section 422 
     for the duration of the grant period involved.
       ``(3) Conversion.--If the recipient or project sponsor 
     carrying out a project that provides transitional or 
     permanent housing submits a request to the Secretary to carry 
     out instead a project for the direct benefit of low-income 
     persons, and the Secretary determines that the initial 
     project is no longer needed to provide transitional or 
     permanent housing, the Secretary may approve the project 
     described in the request and authorize the recipient or 
     project sponsor to carry out that project.
       ``(e) Incentives To Create New Permanent Housing Stock.--
       ``(1) In general.--In making grants to eligible applicants 
     under section 422, the Secretary shall make awards that 
     provide incentives described in paragraph (2) to promote the 
     creation of new permanent housing units through the 
     construction, or acquisition and rehabilitation, of permanent 
     housing units, that are owned by a recipient, project 
     sponsor, or other independent entity who entered into a 
     contract with a recipient or project sponsor, for--

[[Page S4872]]

       ``(A)(i) homeless individuals with disabilities who 
     experience chronic homelessness; or
       ``(ii) homeless families that include a homeless individual 
     with a disability who experiences chronic homelessness; and
       ``(B) nondisabled homeless families.
       ``(2) Assistance.--
       ``(A) Individuals with disabilities.--An eligible applicant 
     that receives assistance under section 422 to implement a 
     project that involves the construction, or acquisition and 
     rehabilitation, of new permanent housing units described in 
     paragraph (1), for individuals and families described in 
     paragraph (1)(A), shall also receive, as part of the grant, 
     incentives consisting of--
       ``(i) funds sufficient to provide not more than 10 years of 
     rental assistance, renewable in accordance with section 428;
       ``(ii) in a case in which the project is the highest 
     priority project described in the application, a bonus of not 
     more than $250,000 per collaborative or solo application 
     submitted by the eligible applicant under this subtitle to 
     carry out activities described in section 423; and
       ``(iii) the technical assistance needed to ensure the 
     financial viability and programmatic effectiveness of the 
     project.
       ``(B) Nondisabled homeless families.--An eligible applicant 
     that receives assistance under section 422 to implement a 
     project that involves the construction, or acquisition and 
     rehabilitation, of new permanent housing units described in 
     paragraph (1), for nondisabled homeless families, shall also 
     receive incentives consisting of--
       ``(i) in a case in which the project is the highest 
     priority project described in the application, a bonus of not 
     more than $250,000 per collaborative or solo application 
     submitted by the eligible applicant under this subtitle to 
     carry out activities described in section 423; and
       ``(ii) the technical assistance needed to ensure the 
     financial viability and programmatic effectiveness of the 
     project.
       ``(3) Eligible applicants.--To be eligible to receive a 
     grant under this subtitle to carry out activities to create 
     new permanent housing stock for individuals and families 
     described in paragraph (1), an applicant shall be a private 
     nonprofit organization or a public housing authority.
       ``(4) Location.--To the extent practicable, a Board that 
     receives a grant under this subtitle to create new permanent 
     housing stock shall ensure that the housing is located in a 
     mixed-income environment.
       ``(f) Repayment of Assistance and Prevention of Undue 
     Benefits.--
       ``(1) Repayment.--If a recipient or project sponsor 
     receives assistance under section 422 to carry out a project 
     that consists of activities described in paragraph (1) or (2) 
     of subsection (a) and the project ceases to provide 
     transitional or permanent housing--
       ``(A) earlier than 10 years after operation of the project 
     begins, the Secretary shall require the recipient or project 
     sponsor to repay 100 percent of the assistance; or
       ``(B) not earlier than 10 years, but earlier than 20 years, 
     after operation of the project begins, the Secretary shall 
     require the recipient or project sponsor to repay 10 percent 
     of the assistance for each of the years in the 20-year period 
     for which the project fails to provide that housing.
       ``(2) Prevention of undue benefits.--Except as provided in 
     paragraph (3), if any property is used for a project that 
     receives assistance under subsection (a) and consists of 
     activities described in paragraph (1) or (2) of subsection 
     (a), and the sale or other disposition of the property occurs 
     before the expiration of the 20-year period beginning on the 
     date that operation of the project begins, the recipient or 
     project sponsor who received the assistance shall comply with 
     such terms and conditions as the Secretary may prescribe to 
     prevent the recipient or project sponsor from unduly 
     benefiting from such sale or disposition.
       ``(3) Exception.--A recipient or project sponsor shall not 
     be required to make the repayments, and comply with the terms 
     and conditions, required under paragraph (1) or (2) if--
       ``(A) the sale or disposition of the property used for the 
     project results in the use of the property for the direct 
     benefit of very low-income persons; or
       ``(B) all of the proceeds of the sale or disposition are 
     used to provide transitional or permanent housing meeting the 
     requirements of this subtitle.'';
       (3) in section 426 (42 U.S.C. 11386)--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``Applications'' and all 
     that follows through ``shall'' and inserting ``Applications 
     for assistance under section 422 shall'';
       (ii) in paragraph (2)--

       (I) by striking subparagraph (B) and inserting the 
     following:

       ``(B) a description of the size and characteristics of the 
     population that would occupy housing units or receive 
     supportive services assisted under this subtitle;''; and

       (II) in subparagraph (E), by striking ``in the case of 
     projects assisted under this title that do not receive 
     assistance under such sections,''; and

       (iii) in paragraph (3), in the last sentence, by striking 
     ``recipient'' and inserting ``recipient or project sponsor'';
       (B) in subsection (d), in the first sentence, by striking 
     ``recipient'' and inserting ``recipient or project sponsor'';
       (C) by striking subsection (e);
       (D) by redesignating subsections (f), (g), and (h), as 
     subsections (e), (f), and (g), respectively;
       (E) in subsection (f) (as redesignated in subparagraph 
     (D)), in the first sentence, by striking ``recipient'' each 
     place it appears and inserting ``recipient or project 
     sponsor'';
       (F) by striking subsection (i); and
       (G) by redesignating subsection (j) as subsection (h);
       (4)(A) by repealing section 429 (42 U.S.C. 11389); and
       (B) by redesignating sections 427 and 428 (42 U.S.C. 11387, 
     11388) as sections 432 and 433, respectively; and
       (5) by inserting after section 426 the following:

     ``SEC. 427. ALLOCATION AMOUNTS AND INCENTIVES FOR SPECIFIC 
                   ELIGIBLE ACTIVITIES.

       ``(a) Purpose.--The Secretary shall promote--
       ``(1) permanent housing development activities for--
       ``(A) homeless individuals with disabilities and homeless 
     families that include such an individual; and
       ``(B) nondisabled homeless families; and
       ``(2) prevention activities described in section 423(a)(9).
       ``(b) Definition.--In this section, the term `nondisabled 
     homeless family' means a homeless family that does not 
     include a homeless individual with a disability.
       ``(c) Annual Portion of Appropriated Amount Available.--
       ``(1) Disabled homeless individuals and families.--
       ``(A) In general.--From the amount made available to carry 
     out this subtitle for a fiscal year, a portion equal to not 
     less than 30 percent of the sums made available to carry out 
     subtitle B and this subtitle for that fiscal year shall be 
     used for activities to develop new permanent housing, in 
     order to help create affordable permanent housing for 
     homeless individuals with disabilities and homeless families 
     that include such an individual.
       ``(B) Calculation.--In calculating the portion of the 
     amount described in subparagraph (A) that is used for 
     activities described in subparagraph (A), the Secretary shall 
     not count funds made available to renew contracts for 
     existing projects (in existence as of the date of the 
     renewal) under section 428.
       ``(2) Nondisabled homeless families.--From the amount made 
     available to carry out this subtitle for a fiscal year, a 
     portion equal to not more than 10 percent of the sums 
     described in paragraph (1) may be used for activities to 
     develop new permanent housing for nondisabled homeless 
     families.
       ``(3) Management information services.--From the amount 
     made available to carry out this subtitle for a fiscal year--
       ``(A) a portion equal to not more than 3 percent (and not 
     more than $30,000,000), shall be used for management 
     information services described in section 423(a)(7) for each 
     of the first 3 full fiscal years after the date of enactment 
     of the Community Partnership to End Homelessness Act of 2002; 
     and
       ``(B) a portion equal to not more than 1.5 percent (and not 
     more than $15,000,000) shall be used for such services for 
     each subsequent fiscal year.
       ``(4) Monitoring and evaluation activities.--From the 
     amount available to carry out this subtitle for a fiscal 
     year, a portion equal to not more than 1.5 percent (and not 
     more than $15,000,000) shall be used for monitoring and 
     evaluation activities described in section 423(a)(8).
       ``(5) Prevention activities.--From the amount made 
     available to carry out this subtitle for a fiscal year, a 
     portion equal to not more than 3 percent of the sums 
     described in paragraph (1) shall be used for prevention 
     activities described in section 423(a)(9).
       ``(d) Funding for Acquisition, Construction, and 
     Rehabilitation of Permanent or Transitional Housing.--Nothing 
     in this Act shall be construed to establish a limit on the 
     amount of funding that an applicant may request under this 
     subtitle for acquisition, construction, or rehabilitation 
     activities for the development of permanent housing or 
     transitional housing.

     ``SEC. 428. RENEWAL FUNDING AND TERMS OF ASSISTANCE FOR GRANT 
                   AMOUNTS FOR PERMANENT HOUSING FOR HOMELESS 
                   INDIVIDUALS WITH DISABILITIES.

       ``(a) In General.--Of the total amount available for use in 
     connection with expiring or terminating section 8 subsidy 
     contracts awarded under section 8 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f), such sums as may be 
     necessary shall be transferred and merged into the Homeless 
     Assistance Grants account of the Department of Housing and 
     Urban Development.
       ``(b) Renewals.--Such sums shall be available for the 
     renewal of contracts for a 1-year term for rental assistance 
     and housing operation costs associated with permanent housing 
     projects funded under this subtitle, or under subtitle C or F 
     (as in effect on the day before the date of enactment of the 
     Community Partnership to End Homelessness Act of 2002), for 
     homeless individuals with disabilities and homeless families 
     that include such an individual. The Secretary shall 
     determine whether to renew a contract for such a permanent 
     housing project on the basis of demonstrated need for the 
     project and the compliance of the entity carrying out the 
     project with appropriate standards of housing quality and 
     habitability as determined by the Secretary.

     ``SEC. 429. ADMINISTRATIVE EXPENSES.

       ``(a) Administrative Expenses.--Grant amounts awarded under 
     this subtitle may be

[[Page S4873]]

     used for administrative expenses, including expenses for--
       ``(1) carrying out routine grant administration and 
     monitoring activities;
       ``(2) receipt and disbursal of program funds;
       ``(3) preparation of financial and performance reports, 
     including carrying out management information system 
     functions; and
       ``(4) compliance with grant conditions and audit 
     requirements.
       ``(b) Limitations on Administrative Expenses.--A portion, 
     of not more than 6 percent, of grant amounts awarded under 
     this subtitle may be used for administrative expenses 
     described in subsection (a), and not less than \1/2\ of such 
     portion shall be allocated to nonprofit organizations and 
     other project sponsors to fund management information system 
     functions, application preparation, and preparation of annual 
     performance and other evaluation reports.

     ``SEC. 430. MATCHING FUNDING.

       ``(a) In General.--An entity who submits an application and 
     receives a grant under this subtitle shall make available 
     contributions, in cash, in an amount equal to not less than 
     25 percent of the Federal funds provided under the grant, 
     except as provided in subsection (b).
       ``(b) Creation of Permanent Housing Stock.--The Secretary 
     shall not establish a matching funds requirement relating to 
     activities carried out under this subtitle that involve the 
     construction, or acquisition and rehabilitation, of a new 
     permanent housing unit if--
       ``(1) the total cost of the construction, or acquisition 
     and rehabilitation, is not more than $500,000;
       ``(2) the unit is owned by a recipient, project sponsor, or 
     other independent entity who entered into a contract with a 
     recipient or project sponsor; and
       ``(3) the unit is for individuals and families described in 
     section 423(e).

     ``SEC. 431. APPEAL PROCEDURE.

       ``(a) In General.--With respect to funding under this 
     subtitle, if certification of consistency with the 
     Consolidated Plan pursuant to section 403 is withheld from an 
     applicant who has submitted an application for that 
     certification, such applicant may appeal such decision to the 
     Secretary.
       ``(b) Procedure.--The Secretary shall establish a procedure 
     to process the appeals described in subsection (a).
       ``(c) Determination.--Not later than 45 days after the date 
     of receipt of an appeal described in subsection (a), the 
     Secretary shall determine if certification was unreasonably 
     withheld. If such certification was unreasonably withheld, 
     the Secretary shall review such application and determine if 
     such applicant shall receive funding under this subtitle.''.

     SEC. 7. REPEALS AND CONFORMING AMENDMENTS.

       (a) Repeals.--Subtitles D, E, F, and G of title IV of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11391 et 
     seq., 11401 et seq., 11403 et seq., and 11408 et seq.) are 
     repealed.
       (b) Conforming Amendments.--
       (1) Interagency council on homelessness.--Section 
     2066(b)(3)(F) of title 38, United States Code, section 506(a) 
     of the Public Health Service Act (42 U.S.C. 290aa-5(a)), and 
     sections 201 and 207(1), and subsections (c)(2) and (d)(3) of 
     section 501, of the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11311, 11317(1), and 11411) are amended by 
     striking ``Interagency Council on the Homeless'' and 
     inserting ``Interagency Council on Homelessness''.
       (2) Consolidated plan.--Section 403(1) of the McKinney-
     Vento Homeless Assistance Act, as redesignated in section 
     4(2), is amended--
       (A) by striking ``current housing affordability strategy'' 
     and inserting ``Consolidated Plan''; and
       (B) by inserting before the comma the following: 
     ``(referred to in that section as a `comprehensive housing 
     affordability strategy')''.
       (3) Persons experiencing homelessness.--Section 103 of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) is 
     amended by adding at the end the following:
       ``(d) Persons Experiencing Homelessness.--References in 
     this Act to homeless individuals (including homeless persons) 
     or homeless groups (including the homeless) shall be 
     considered to include, and to refer to, individuals 
     experiencing homelessness or groups experiencing 
     homelessness, respectively.''.

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