Congressional Record, Volume 148 Issue 68 (Thursday, May 23, 2002)

[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.''.

____________________