[Congressional Record Volume 148, Number 84 (Friday, June 21, 2002)]
[Senate]
[Pages S5902-S5905]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DODD (for himself, Mr. Smith of Oregon, Mr. Torricelli, 
        Mr. Reed, and Mr. Kerry):
  S. 2667. A bill to amend the Peace Corps Act to promote global 
acceptance of the principles of international peace and nonviolent 
coexistence among peoples of diverse cultures and systems of 
government, and for other purposes; to the Committee on Foreign 
Relations.
  Mr. DODD. Madam President, I rise today to introduce the Peace Corps 
Charter for the 21st Century Act, a bill which I believe addresses the 
needs and challenges of the Peace Corps of today, and lays a path 
toward bringing this celebrated organization into its next 40 years.
  It was 41 years ago when President Kennedy laid out his vision for 
the future of American volunteer service. He spoke of a corps of 
committed and idealistic young volunteers, the Peace Corps, who would 
travel all over the world, ``promoting world peace and friendship.'' He 
saw public service as an ideal to transcend political rhetoric. 
Volunteers were not to reflect particular Republican or Democratic 
ideology, but rather their service would be a manifestation of the core 
American values we all share. Their principal objectives in this 
endeavor would be to help in the development and betterment of the 
countries and communities they serve, to foster a greater understanding 
of American values and culture abroad, and to likewise foster a greater 
appreciation of other peoples and cultures on the part of Americans. 
Four decades later, thousands upon thousands of Americans have 
volunteered for the Peace Corps and worked with diligence and 
compassion to achieve these aims.
  It is always with tremendous fondness and pride that I speak of the 
Peace Corps, as it gives me occasion to recall my own years as a 
volunteer in the Dominican Republic. I have often spoken of how these 
two years changed my life. Indeed, living and working outside of the 
United States and seeing the way other nations operated for the first 
time, I grew to appreciate our Nation more and more, and developed a 
strong sense of what it means to be an American. I was proud to share 
my experience as an American citizen with the people I was there to 
help. Those two years were invaluable to me, and truly brought home to 
me the value of public service.
  Of course, my Peace Corps service was from 1966-1968, when it was a 
relatively new organization. Today, I am proud to note that the peace 
Corps now sends more than 7,000 volunteers to 76 different countries 
every year. This means that there are 7,000 important American liaisons 
scattered around the world helping people, promoting American values, 
and showing the world the best of America. After all, these volunteers 
are really the heart and soul of the Peace Corps. They are the ones on 
the front lines, working hard, making one-on-one connections with the 
citizens of the countries in which they work. For 41 years, they have 
brought a wealth of practical experience to communities in Africa, 
Latin America, Asia, the Middle East, Eastern Europe, and the Pacific. 
Indeed, the enduring success of the Peace Corps is rooted in each 
volunteer's commitment to leave behind skills that allow people to take 
charge of their own futures.
  As remarkable as the success of the Peace Corps has been, and as 
important a symbol and example it is of public service, in the 
aftermath of the tragic attacks on America of September 11, it has 
become something more. It has become a necessity. The terrorist attacks 
of last September have shown us that the world has become a much 
smaller place. The United States can no longer afford to neglect 
certain countries, or certain parts of the world. We need to find ways 
to help developing countries meet their basic needs, and we need to do 
so now. We especially need to act in places where the citizens are 
particularly unfamiliar with or unfriendly to American values. Now, 
more than ever, Peace Corps volunteers play a pivotal role in helping 
us achieve a greater understanding of America abroad, especially in 
predominantly Muslim countries.
  If we are to expand the aims of the Peace Corps, to broaden its 
scope, its charter, and to send our volunteers into more countries, 
then we must provide the Peace Corps with adequate resources to safely 
and effectively pursue these objectives. I believe that the legislation 
proposed in the Peace Corps Charter for the 21st Century Act will go a 
long way to meeting the Peace Corps' funding needs, as well as charting 
a course toward the future of this valuable organization. I would like 
to briefly outline the provisions included in ths bill, and explain to 
my colleagues why I feel its enactment is so important.
  First, my bill stresses the importance of maintaining the Peace 
Corps' independence from any political affiliation, party, government 
agency, or particular administration. This independence is critical to 
the continued success, credibility, and acceptance of the volunteers in 
the countries in which they serve. We must vigilantly preserve this 
success. Especially if we are to expand the number of countries now 
being served, and if we plan to send our volunteers into more countries 
with significant Muslim populations, we must make sure that the Peace 
Corps goals of friendship, peace, and grassroots development are in no 
way muddled or compromised by political objectives.
  As you may know, Congress has called for an expansion of the Peace 
Corps to include 10,000 volunteers, and the President has called for a 
doubling of current numbers over five years. While I applaud the 
enthusiasm inherent in these requests, we must not allow such an 
increase in quantity to in any way impinge on the quality of the Peace 
Corps experience, either for the volunteers themselves or the 
communities they serve. There are currently 7,000 volunteers abroad 
working under a budget of $275,000,000. Any expansion in staffing must 
include a commensurate increase in funding and support resources 
available to them. In fact, to better address the growing mandate and 
needs of the Peace Corps, this bill suggests the establishment of an 
Office of Strategic Planning, as well as a Peace Corps Advisory Council

[[Page S5903]]

comprised of returned volunteers to coordinate existing programs and 
address long-term expansion plans.
  One of the most important parts of this bill, which I have already 
touched on here today, is the need to place a special emphasis on 
recruiting volunteers for placement in countries whose governments are 
seeking to foster a greater understanding by and about their citizens. 
There is to be a special authorization of funds for the purposes of 
this recruitment, as well as a report due on this subject from the 
Peace Corps Director within 60 days of the enactment of this 
legislation. This report will outline a strategy for increasing the 
Peace Corps presence in countries with substantial Muslim populations. 
We must find ways to engage with these countries, and to foster a more 
open interaction and understanding between our citizens.
  This bill also sets time line requirements and procedures for new 
initiatives from the Peace Corps Director. Essentially, this increases 
Congressional oversight of new projects, programs, or directives. It 
also requests a description from the Director of current loan 
forgiveness programs available to volunteers, and a comparison with 
other government-sponsored loan forgiveness programs.
  Another important provision in this legislation is the training 
mandated for volunteers in the areas of education, prevention, and 
treatment of infectious diseases such as HIV/AIDS, malaria, and 
tuberculosis, so that they may better help fight these diseases in the 
communities in which they serve. This training, in cooperation with the 
centers for Disease Control and Prevention, the National Institutes of 
Health, the World Health Organization, the Pan American Health 
Organization, and local health officials, will prepare volunteers to 
promote a better grassroots approach to public health, safety, and 
disease prevention.
  I also feel strongly, and this is also included in the bill, that we 
must utilize the insights and experience of returned volunteers to get 
them more involved in the promotion and support of Peace Corps 
programs. One way to do this is to provide federal grant monies to 
certain non-profits in the District of Columbia. These non-profits 
would be established for the express purpose of using the knowledge, 
experience, and expertise of returned volunteers to help carry out the 
goals of the Peace Corps. Returned volunteers are an amazing resource 
for the Peace Corps. They continue to make a difference here at home 
through their enduring community service, and their work to strengthen 
America's appreciation of other cultures. Together they are building a 
legacy of service for the next generation, and it is my hope that the 
appropriations included in this legislation, for non-profit grant 
monies, will provide them with yet another outlet for continued 
service.
  Finally, let me speak briefly to the funding level increases called 
for in this legislation. Over the next five years this bill calls for 
appropriations to be made in the following amounts: $465 million for 
fiscal year 2004, $500 million for fiscal year 2005, $560 million for 
fiscal year 2006, and $560 million for fiscal year 2007. In addition, 
and most importantly, this bill allows for additional appropriations to 
be made to address the specific funding needs of the Peace Corps as it 
seeks to increase volunteer strength. Again, we must not allow 
expansion to infringe on the quality of the Peace Corps experience. We 
must ensure that we adequately provide for our volunteers and equip 
them with sufficient resources to best assist the communities in which 
they serve.
  In conclusion, I believe that the Peace Corps Charter for the 21st 
Century Act will do an excellent job of modifying the Peace Corps Act 
to better meet the needs of both our volunteers and an expanding and 
changing organization. The Peace Corps is a truly remarkable 
institution in America, a symbol of the very best of our ideals of 
service, sacrifice, and self-reliance. Our volunteers are to be 
commended again for their enduring commitment to these ideals, and for 
the way they are able to communicate the message of the Peace Corps 
throughout the world. They deserve the very best from us. I urge my 
colleagues to support this legislation and the continued success of the 
Peace Corps. 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. 2667

       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 ``Peace Corps Charter for the 
     21st Century Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The Peace Corps was established in 1961 to promote 
     world peace and friendship through the service of American 
     volunteers abroad.
       (2) The three goals codified in the Peace Corps Act which 
     have guided the Peace Corps and its volunteers over the 
     years, can work in concert to promote global acceptance of 
     the principles of international peace and nonviolent 
     coexistence among peoples of diverse cultures and systems of 
     government.
       (3) The Peace Corps has operated in 135 countries with 
     165,000 Peace Corps volunteers since its establishment.
       (4) The Peace Corps has sought to fulfill three goals, as 
     follows: to help people in developing nations meet basic 
     needs, to promote understanding of America's values and 
     ideals abroad, and to promote an understanding of other 
     peoples by Americans.
       (5) After more than 40 years of operation, the Peace Corps 
     remains the world's premier international service 
     organization dedicated to promoting grassroots development.
       (6) The Peace Corps remains committed to sending well 
     trained and well supported Peace Corps volunteers overseas to 
     promote world peace, friendship, and grassroots development.
       (7) The Peace Corps is an independent agency, and therefore 
     no Peace Corps personnel or volunteers should have any 
     relationship with any United States intelligence agency or be 
     used to accomplish any other goal than the goals established 
     by the Peace Corps Act.
       (8) The Crisis Corps has been an effective tool in 
     harnessing the skills and talents for returned Peace Corps 
     volunteers and should be expanded to utilize to the maximum 
     extent the pool of talent from the returned Peace Corps 
     volunteer community.
       (9) The Peace Corps is currently operating with an annual 
     budget of $275,000,000 in 70 countries with 7,000 Peace Corps 
     volunteers.
       (10) There is deep misunderstanding and misinformation 
     about American values and ideals in many parts of the world, 
     particularly those with substantial Muslim populations, and a 
     greater Peace Corps presence in such places could foster 
     greater understanding and tolerance of those countries.
       (11) Congress has declared that the Peace Corps should be 
     expanded to sponsor a minimum of 10,000 Peace Corps 
     volunteers.
       (12) President George W. Bush has called for the doubling 
     of the number of Peace Corps volunteers in service in a 
     fiscal year to 15,000 volunteers in service by the end of 
     fiscal year 2007.
       (13) Any expansion of the Peace Corps shall not jeopardize 
     the quality of the Peace Corps volunteer experience, and 
     therefore can only be accomplished by an appropriate increase 
     in field and headquarters support staff.
       (14) It would be extremely useful for the Peace Corps to 
     establish an office of strategic planning to evaluate 
     existing programs and undertake long-term planning in order 
     to facilitate the orderly expansion of the Peace Corps from 
     its current size to the stated objective of 15,000 volunteers 
     in the field by the end of fiscal year 2007.
       (15) The Peace Corps would benefit from the advice and 
     council of a streamlined bipartisan National Peace Corps 
     Advisory Council composed of distinguished returned Peace 
     Corps volunteers.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives.
       (2) Director.--The term ``Director'' means the Director of 
     the Peace Corps.
       (3) Peace corps volunteer.--The term ``Peace Corps 
     volunteer'' means a volunteer or a volunteer leader under the 
     Peace Corps Act.
       (4) Returned peace corps volunteer.--The term ``returned 
     Peace Corps volunteer'' means a person who has been certified 
     by the Director as having served satisfactorily as a Peace 
     Corps volunteer.

     SEC. 4. RESTATEMENT OF INDEPENDENCE OF THE PEACE CORPS.

       (a) In General.--Section 2A of the Peace Corps Act (22 
     U.S.C. 2501-1) is amended by adding at the end the following 
     new sentence: ``As an independent agency, all recruiting of 
     volunteers shall be undertaken solely by the Peace Corps.''.
       (b) Details and Assignments.--Section 5(g) of the Peace 
     Corps Act (22 U.S.C. 2504(g)) is amended by inserting after 
     ``Provided, That'' the following: ``such detail or assignment 
     does not contradict the standing of Peace Corps volunteers as 
     being independent from foreign policy-making and intelligence 
     collection: Provided further, That''.

     SEC. 5. REPORTS TO CONGRESS.

       (a) Consultations and Reports Concerning New Initiatives.--
     Section 11 of the Peace Corps Act (22 U.S.C. 2510) is 
     amended--

[[Page S5904]]

       (1) by inserting ``(a) Annual Reports.--'' immediately 
     before ``The President shall transmit''; and
       (2) by adding at the end thereof the following:
       ``(b) Consultations and Reports on New Initiatives.--Thirty 
     days prior to implementing any new initiative, the Director 
     shall consult with the Peace Corps National Advisory Council 
     established in section 12 and shall submit to the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives a 
     report describing the objectives that such initiative is 
     intended to fulfill, an estimate of any costs that may be 
     incurred as a result of the initiative, and an estimate of 
     any impact on existing programs, including the impact on the 
     safety of volunteers under this Act''.
       (b) Country Security Reports.--Section 11 of the Peace 
     Corps Act (22 U.S.C. 2510), as amended by subsection (a), is 
     further amended by adding at the end the following:
       ``(c) Country Security Reports.--The Director of the Peace 
     Corps shall submit to the Committee on Foreign Relations of 
     the Senate and the Committee on International Relations of 
     the House of Representatives a report annually on the status 
     of security procedures in any country in which the Peace 
     Corps operates programs or is considering doing so. Each 
     report shall include recommendations when appropriate as to 
     whether security conditions would be enhanced by colocating 
     volunteers with international or local nongovernmental 
     organizations, or with the placement of multiple volunteers 
     in one location.''.
       (c) Report on Student Loan Forgiveness Programs.--Not later 
     than 30 days after the date of enactment of this Act, the 
     Director of the Peace Corps shall submit to the Committee on 
     Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives a 
     report--
       (1) describing the student loan forgiveness programs 
     currently available to Peace Corps volunteers upon completion 
     of their service; and
       (2) comparing such programs with other Government-sponsored 
     student loan forgiveness programs.

     SEC. 6. SPECIAL VOLUNTEER RECRUITMENT AND PLACEMENT FOR 
                   COUNTRIES WHOSE GOVERNMENTS ARE SEEKING TO 
                   FOSTER GREATER UNDERSTANDING BY AND ABOUT THEIR 
                   CITIZENS.

       (a) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Director shall submit a report to 
     the appropriate congressional committees describing the 
     initiatives that the Peace Corps intends to pursue in order 
     to solicit requests from eligible countries where the 
     presence of Peace Corps volunteers would facilitate a greater 
     understanding that there exists a universe of commonly shared 
     human values and aspirations and would dispel unfounded fears 
     and suspicion among peoples of diverse cultures and systems 
     of government, including peoples from countries with 
     substantial Muslim populations. Such report shall include--
       (1) a description of the recruitment strategies to be 
     employed by the Peace Corps to recruit and train volunteers 
     with the appropriate language skills and interest in serving 
     in such countries; and
       (2) a list of the countries that the Director has 
     determined should be priorities for special recruitment and 
     placement of Peace Corps volunteers.
       (b) Use of Returned Peace Corps Volunteers.--
     Notwithstanding any other provision of law, the Director is 
     authorized and strongly urged to utilize the services of 
     returned Peace Corps volunteers having language and cultural 
     expertise, including those returned Peace Corps volunteers 
     who may have served previously in countries with substantial 
     Muslim populations, in order to open or reopen Peace Corps 
     programs in such countries.
       (c) Allocation of Funds.--In addition to amounts authorized 
     to be appropriated to the Peace Corps by section 11 for the 
     fiscal years 2003, 2004, 2005, and 2006, there is authorized 
     to be appropriated for the Peace Corps $5,000,000 each such 
     fiscal year solely for the recruitment, training, and 
     placement of Peace Corps volunteers in countries whose 
     governments are seeking to foster greater understanding by 
     and about their citizens.

     SEC. 7. GLOBAL INFECTIOUS DISEASES INITIATIVE.

       (a) In General.--The Director, in cooperation with the 
     Centers for Disease Control and Prevention, the National 
     Institutes of Health, the World Health Organization and the 
     Pan American Health Organization, local public health 
     officials, shall develop a program of training for all Peace 
     Corps volunteers in the areas of education, prevention, and 
     treatment of infectious diseases in order to ensure that all 
     Peace Corps volunteers make a contribution to the global 
     campaign against such diseases.
       (b) Definitions.--In this section:
       (1) AIDS.--The term ``AIDS'' means the acquired immune 
     deficiency syndrome.
       (2) HIV.--The term ``HIV'' means the human immunodeficiency 
     virus, the pathogen that causes AIDS.
       (3) HIV/AIDS.--The term ``HIV/AIDS'' means, with respect to 
     an individual, an individual who is infected with HIV or 
     living with AIDS.
       (4) Infectious diseases.--The term ``infectious diseases'' 
     means HIV/AIDS, tuberculosis, and malaria.

     SEC. 8. PEACE CORPS ADVISORY COUNCIL.

       Section 12 of the Peace Corps Act (22 U.S.C. 2511; relating 
     to the Peace Corps National Advisory Council) is amended--
       (1) by amending subsection (b)(2)(D) to read as follows:
       ``(D) make recommendations for utilizing the expertise of 
     returned Peace Corps volunteers in fulfilling the goals of 
     the Peace Corps.'';
       (2) in subsection (c)--
       (A) by striking paragraph (1);
       (B) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively;
       (C) in paragraph (1) (as so redesignated)--
       (i) in subparagraph (A)--

       (I) by striking ``fifteen'' and inserting ``seven'';
       (II) by striking the second sentence and inserting the 
     following: ``All of the members shall be former Peace Corps 
     volunteers, and not more than four shall be members of the 
     same political party.'';

       (ii) by amending subparagraph (D) to read as follows:
       ``(D) The members of the Council shall be appointed to 2-
     year terms.'';
       (iii) by striking subparagraphs (B), (E), and (H); and
       (iv) by redesignating subparagraphs (C), (D), (F), (G), and 
     (I) as subparagraphs (B), (C), (D), (E), and (F), 
     respectively;
       (3) by amending subsection (g) to read as follows:
       ``(g) Chair.--The President shall designate one of the 
     voting members of the Council as Chair, who shall serve in 
     that capacity for a period not to exceed two years.'';
       (4) by amending subsection (h) to read as follows:
       ``(h) Meetings.--The Council shall hold a regular meeting 
     during each calendar quarter at a date and time to be 
     determined by the Chair of the Council.''; and
       (5) by amending subsection (i) to read as follows:
       ``(i) Report.--Not later than July 30, 2003, and annually 
     thereafter, the Council shall submit a report to the 
     President and the Director of the Peace Corps describing how 
     the Council has carried out its functions under subsection 
     (b)(2).''.

     SEC. 9. READJUSTMENT ALLOWANCES.

       The Peace Corps Act is amended--
       (1) in section 5(c) (22 U.S.C. 2504(c)), by striking 
     ``$125'' and inserting ``$275''; and
       (2) in section 6(1) (22 U.S.C. 2505(1)), by striking 
     ``$125'' and inserting ``$275''.

     SEC. 10. PROGRAMS AND PROJECTS OF RETURNED PEACE CORPS 
                   VOLUNTEERS TO PROMOTE THE GOALS OF THE PEACE 
                   CORPS.

       (a) Purpose.--The purpose of this section is to provide 
     support for returned Peace Corps volunteers to develop 
     programs and projects to promote the objectives of the Peace 
     Corps, as set forth in section 2 of the Peace Corps Act.
       (b) Grants to Certain Nonprofit Corporations.--
       (1) Grant authority.--To carry out the purpose of this 
     section, and subject to the availability of appropriations, 
     the Director of the Corporation for National and Community 
     Service shall award grants on a competitive basis to private 
     nonprofit corporations that are established in the District 
     of Columbia for the purpose of serving as incubators for 
     returned Peace Corps volunteers seeking to use their 
     knowledge and expertise to undertake community-based projects 
     to carry out the goals of the Peace Corps Act.
       (2) Eligibility for grants.--To be eligible to compete for 
     grants under this section, a nonprofit corporation must have 
     a board of directors composed of returned Peace Corps 
     volunteers with a background in community service, education, 
     or health. The director of the corporation (who may also be a 
     board member of the nonprofit corporation) shall also be a 
     returned Peace Corps volunteer with demonstrated management 
     expertise in operating a nonprofit corporation. The stated 
     purpose of the nonprofit corporation shall be to act solely 
     as an intermediary between the Corporation for National and 
     Community Service and individual returned Peace Corps 
     volunteers seeking funding for projects consistent with the 
     goals of the Peace Corps. The nonprofit corporation may act 
     as the accountant for individual volunteers for purposes of 
     tax filing and audit responsibilities.
       (c) Grant Requirements.--Such grants shall be made pursuant 
     to a grant agreement between the Director and the nonprofit 
     corporation that requires that--
       (1) grant funds will only be used to support programs and 
     projects described in subsection (a) pursuant to proposals 
     submitted by returned Peace Corps volunteers (either 
     individually or cooperatively with other returned 
     volunteers);
       (2) the nonprofit corporation give consideration to funding 
     individual projects or programs by returned Peace Corps 
     volunteers up to $100,000;
       (3) not more than 20 percent of funds made available to the 
     nonprofit corporation will be used for the salaries, 
     overhead, or other administrative expenses of the nonprofit 
     corporation; and
       (4) the nonprofit corporation will not receive grant funds 
     under this section for more than two years unless the 
     corporation has raised private funds, either in cash or in 
     kind for up to 40 percent of its annual budget.
       (d) Funding.--Of the funds available to the Corporation for 
     National and Community Service for fiscal year 2003 or any 
     fiscal year thereafter, not to exceed $10,000,000 shall be 
     available for each such fiscal year to carry out the grant 
     program established under this section.

[[Page S5905]]

       (e) Status of the Fund.--Nothing in this section shall be 
     construed to make any nonprofit corporation supported under 
     this section an agency or establishment of the United States 
     Government or to make the members of the board of directors 
     or any officer or employee of such corporation an officer or 
     employee of the United States.
       (f) Factors in Awarding Grants.--In determining the number 
     of private nonprofit corporations to award grants to in any 
     fiscal years, the Director should balance the number of 
     organizations against the overhead costs that divert 
     resources from project funding.
       (g) Congressional Oversight.--Grant recipients under this 
     section shall be subject to the appropriate oversight 
     procedures of Congress.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 3(b)(1) of the Peace Corps Act (22 
     U.S.C. 2502(b)(1)) is amended--
       (1) by striking ``2002, and'' and inserting ``2002,''; and
       (2) by inserting before the period the following: ``, 
     $465,000,000 for fiscal year 2004, $500,000,000 for fiscal 
     year 2005, $560,000,000 for fiscal year 2006, and 
     $560,000,000 for fiscal year 2007''.
       (b) Increase in Peace Corps Volunteer Strength.--Section 
     3(c) of the Peace Corps Act (22 U.S.C. 2502(c)) is amended by 
     adding the following new subsection at the end thereof:
       ``(d) In addition to the amounts authorized to be 
     appropriated in this section, there are authorized to be 
     appropriated such additional sums as may be necessary to 
     achieve a volunteer corps of 15,000 as soon as practicable 
     taking into account the security of volunteers and the 
     effectiveness of country programs.''.
                                 ______
                                 
      By Mrs. HUTCHISON:
  S. 2668. A bill to ensure the safety and security of passenger air 
transportation cargo and all-cargo air transportation; to the Committee 
on Commerce, Science, and Transportation.
  Mrs. HUTCHISON. Madam President, I rise today to introduce 
legislation to close a dangerous loophole in our aviation security 
network. The attacks of September 11 forced us to take a hard look at 
the way we screen passengers and luggage. Congress responded to the 
challenge with a comprehensive system to perform these tasks through 
the new Transportation Security Administration. We have required the 
TSA to check every passenger and every piece of baggage that is placed 
onboard a flight.
  While I am confident that these measures have improved security, 
Congress has left the back door open to terrorists with plans to 
disrupt passenger flights. We did not establish a similar regime to 
ensure the safety of cargo operations. This issue must be addressed. 
Twenty-two percent of all air cargo in the U.S. is carried on passenger 
flights, but only a tiny percentage of this cargo is inspected. There 
is no point to carefully screening every piece of luggage if the cargo 
placed aboard the same flight is not inspected.
  My legislation would also tighten rules for so-called known shippers. 
Under current procedures, any manufacturer, middleman, or receiver of 
goods can be classified as a known shipper, which allows the shipment 
to proceed without inspection. This is not sufficient to protect the 
public. We must be sure that companies claiming known shipper status 
are whom they claim to be and we must improve handling protocols to 
ensure that terrorists cannot tamper with shipments while they are in 
transit. My bill would accomplish these goals.
  The Air Cargo Security Act would create a comprehensive security 
process for shipment of cargo, particularly for shipments traveling on 
passenger flights. It would require that all cargo onboard passenger 
flights, including foreign-based flights heading for the U.S., be 
thoroughly inspected. The bill would also direct TSA to establish a 
``chain of custody'' for air cargo that ensures that merchandise is 
never out of the control of a known shipper. Under these restrictions, 
cargo could be placed aboard aircraft with confidence that no tampering 
had occurred in transit.
  The legislation would direct TSA to formulate a comprehensive system 
for certifying known shippers and assigning each one a unique encrypted 
identifier that must be produced to the air carrier before loading the 
cargo and cannot be counterfeited. All shippers, including haulers and 
middlemen, must be certified under the new system. If cargo has been 
handled in any way by an uncertified company, then it will not fly. The 
TSA would have to regularly inspect shipping facilities. To accomplish 
these tasks, the bill would provide TSA with additional manpower and 
equipment as needed.
  I know that air cargo security presents a challenge nearly as large 
as passenger security. Forcing shippers and carriers to submit to 
inspection of all cargo would allow only 4 percent of the current 
volume to be processed. I want to ensure that these inspections do not 
harm airline operations.
  However, if we fail to enact these reforms, we will leave aviation 
security only half-finished. I fear that we will lose our aviation 
system if we suffer another successful attack on a passenger flight. I 
call upon my colleagues to take these concrete, measurable steps to 
ensuring the safety of air passengers and those on the ground.

                          ____________________