[Congressional Record Volume 148, Number 119 (Thursday, September 19, 2002)]
[Senate]
[Pages S8920-S8933]
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 and Mr. Allen):
  S. 2966. A bill to enable the United States to maintain its 
leadership in aeronautics and aviation by instituting an initiative to 
develop technologies that will significantly lower noise, emissions, 
and fuel consumption, to reinvigorate basic and applied research in 
aeronautics and aviation, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.
  Mr. DODD. Madam President, I am pleased to rise today with Senator 
Allen to introduce the Aeronautics Research & Development 
Revitalization Act of 2002. This legislation is aimed at protecting the 
economic stability and national security of the United States by 
establishing a broad-based agenda to reinvigorate America's aeronautics 
and aviation R&D enterprise and maintain America's competitive 
leadership in aviation. Congressman Larson and other members of 
Congress introduced companion legislation in the House several months 
ago.
  The United States has dominated the aircraft industry for years. In 
1985, we dominated the aerospace market controlling more than 73 
percent of the commercial aircraft industry. Unfortunately, since 1985, 
the U.S. has fallen behind considerably. Today, we control less than 50 
percent of the global market. Over the last decade, funding for the 
National Aeronautics and Space Administration's aeronautics research 
and development program has fallen by approximately 50 percent.
  Last year, the European Commission and aerospace industry executives 
unveiled a report entitled ``European Aeronautics: A Vision for 2020'' 
which outlines ambitious goals of attaining global leadership in 
aeronautics and creating a world class air transport system for Europe. 
The U.S. aeronautics industry is being left behind at the gates, and is 
now in a position where it must catch up in an effort not to lose its 
economic and technological dominance over the international aeronautics 
market. Europe has committed to spending more than $93 billion within 
the next 20 years in order to implement ``A Vision for 2020''.
  The Aeronautics Research and Development Revitalization Act of 2002 
will provide a funding basis for NASA to plan and implement their 
``Aeronautics Blueprint-Toward a Bold New Era of Aviation''. The 
``Aeronautics Blueprint'' confronts the challenges that are faced by 
the aviation industry and puts forth a vision of what can be achieved 
by investments in aeronautics research and technology, and stresses the 
importance of combining the efforts of NASA, DOD, DoT, the FAA, 
academia, and industry. It does not, however, provide a program plan to 
actually achieve the vision, nor does it address the huge disparity 
between current NASA aeronautics funding and what is required to 
achieve the vision. The bill that Senator Allen and I are introducing 
today provides the necessary program plan needed to achieve the 
nation's aeronautics vision as found in the ``Aeronautics Blueprint,'' 
and stresses the importance of having agencies like NASA and FAA work 
closely together in achieving these goals.
  The Aeronautics Research and Development Revitalization Act of 2002 
would reverse the trend of declining Federal investments in aeronautics 
and aviation R&D by doubling the authorization of funding over five 
years. Funding for NASA would increase to $900 million in 2005, which 
is approximately the level it was in 1998, and would increase to $1.15 
billion in 2007. The legislation would also double funding for the FAA 
to more than $550 million in 2007.
  This bill will have a direct impact on technologies that can be 
easily incorporated into the commercial airline industry. The bill 
focuses on improving fuel-efficiency for commercial standard airliners, 
as well as noise reduction, improved emissions, wake turbulence, more 
stringent safety and security standards, a more efficient air-traffic 
control system, and supersonic transport. Universities will also be 
given resources to develop training methods for people who will make 
use of these technologies. Individual engineering graduate students 
studying aeronautics will be eligible for scholarships and summer 
employment opportunities which will be made possible through specific 
funding in this legislation.
  These new technologies will help our Nation militarily, as well. 
Planes will be able to fly farther than before, communications networks 
will be improved, making it easier to coordinate military operations, 
and quieter engines will make planes less detectable to ground forces 
that do not have the benefit of radar. Even transport missions will be 
much more efficient.
  The events of September 11 not only highlighted the importance of 
aviation to our entire economy, but they also demonstrated the need to 
enhance our aviation security system. This bill should, we believe, be 
part of our government's commitment to investment in the economic 
growth, security and safety of America's aviation and aeronautics 
sector.
                                 ______
                                 
      By Mr. BOND (for himself and Ms. Collins):
  S. 2967. A bill to promote the production of affordable low-income 
housing; to the Committee on Banking, Housing, and Urban Affairs.
  Mr. BOND. Madam President, I rise today to introduce the Affordable 
Housing Expansion Act of 2002. I include a summary of the provisions of 
the legislation with my statement, and I urge all members to review the 
bill and the summary. Obviously this is a major piece of legislation 
that will undoubtedly be considered in the next session of Congress as 
well, but I want to be out in public for discussion this year so we can 
work on it early next year. This is an important bill that is designed 
to start to meet the long-term housing needs of very low- and extremely 
low-income families. This bill is targeted especially to provide 
affordable housing for extremely low-income families, those at or below 
30 percent of medium income.
  In particular, the Affordable Housing Expansion Act would establish a 
new block grant program to be administered by the Department of Housing 
and Urban Development--HUD. HUD would allocate funds to state housing 
finance agencies for the development of mixed income housing with the 
Federal funding targeted to the development of the very low-income and 
extremely low-income housing component of the mixed income housing. 
Each state housing finance agency would have to submit an affordable 
housing expansion

[[Page S8921]]

plan to HUD that ensures the funds are allocated to meet the low-income 
housing needs in both the rural and urban areas of each state. States 
also would have to contribute a 25 percent match. Moreover, each state 
housing finance agency could use up to 20 percent of these block grant 
funds to preserve existing low-income multifamily housing and for the 
rehabilitation needs of low-income multifamily housing.
  The Affordable Housing Expansion Act also provides new authority for 
low-income housing production under the Section 8 program and the 
Public Housing program. Under the Section 8 program, the bill provides 
new authority for a ``Thrifty Voucher'' program that would allow the 
use of section 8 project-based assistance for new construction, 
substantial rehabilitation and preservation of affordable housing for 
extremely low-income families. Because the cost of these vouchers is 
capped at 75 percent of the payment standard, these vouchers will need 
to be used in conjunction with other housing assistance programs, such 
as the HOME program, the Community Development Block Grant program or 
Low Income Housing Tax Credit program, to be successful.
  The bill also would authorize a new loan guarantee program that will 
allow public housing agencies to rehabilitate existing public housing 
or develop off-site public housing in mixed income developments. The 
long-term debt of these loans would be tied to the pro-rata share of 
funds under the Public Housing Capital and Operating Funds that would 
be allocated to the units that are rehabilitated or constructed over a 
maximum of 30 years. This tool will allow Public Housing Agencies to 
address more aggressively the over $20 billion backlog of public 
housing capital needs.
  The Affordable Housing Expansion Act of 2002 is an important first 
step towards addressing a growing shortage of affordable housing for 
very low-income and extremely low-income families. While homeownership 
rates have grown and the cost of housing has skyrocketed, many very 
low-income and extremely low-income families are being left behind 
without the availability of affordable rental housing. This is 
unfortunate. It is a tragedy. The social and economic costs to the 
Nation are dramatic. And while we have several Federal housing 
production programs, such as the HOME program and the Low Income 
Housing Tax Credit, not enough is being done.

  In particular, HUD's most recent report on worst case housing needs, 
A Report on Worst Case Needs in 1999: New Opportunity Amid Continuing 
challenges, concluded that the shortage of affordable housing has 
worsened. In particular, the number of units affordable to extremely 
low-income renters dropped between 1997 and 1999 at an accelerated 
rate, and shortages of affordable housing available to those renters 
worsened. As we have seen in this economy, as rents continue to rise 
faster than inflation, the pressure for above-average rent increases at 
the bottom end of the rental stock is eroding further the supply of 
rental units that are affordable without Government subsidies.
  In addition, this report found a record high of 5.4 million 
families--some 600,000 more families with worst case housing needs than 
in 1991--that have incomes below 50 percent of median income and pay at 
least 50 percent of their income in rent. In addition, worst case 
housing needs have become increasingly concentrated among those 
families with extremely low-incomes. In particular, over three-quarters 
of the families with worst case housing needs in 1997 had incomes below 
30 percent of median income. I have seen no evidence that these 
families have fared better since 1997, and as rents have increased, I 
think it obvious that the problem has worsened. Further, since that 
time, we have lost some 200,000 units of section 8 project-based units 
to rent increases as well as to decisions by owners of the housing not 
to renew their section 8 contracts. Also, as families age and people 
live longer lives, we are beginning to face a new crisis of a lack of 
affordable housing for our seniors.
  The Affordable Housing Expansion Act is designed to provide 
additional, needed tools that will allow States and communities to 
develop new affordable low-income and mixed-income housing, including 
units targeted to extremely low-income families. This would help fill a 
gap in the housing needs of the Nation that would allow these lowest 
income families to begin to climb the housing ladder to homeownership. 
Decisions would be driven by local choice and need and start to meet 
the burgeoning need for new low-income housing in tight markets where 
there is little or no housing for families and seniors at the low end 
of the economic scale. These families need to be served and the cost is 
small compared to potential cascading social and economic costs to both 
communities and families--it is a simple equation--homes equal stable 
environments in which children are educated and people can obtain jobs. 
Jobs and homes represent the tax base of any community and educated 
children are the future of our Nation.
  This is important legislation. The private sector is not making the 
needed investment to meet the low-income housing needs of the present 
and future. The Federal government must show the leadership and make 
the needed investment to partner with state and localities as well as 
public and private entities in the low-income housing infrastructure of 
the Nation. This bill is designed to start to meet this need and focus 
the debate on the importance of low-income housing production to the 
current and future housing needs of this Nation.
  Too often in this body we say we are going to help low-income people 
get more housing because we are going to expand the number of section 8 
certificates. The sad fact is that in many communities, particularly in 
the St. Louis area, no matter how many more vouchers you put out, no 
more housing is available. Too many of the vouchers, the certificates, 
are not used because there simply is not the affordable housing. This 
deals with the problem that we see, not just in St. Louis but across 
the Nation.
  I believe my colleagues should take a hard look at this. We invite 
their comments and consideration. We must do something, and it will 
probably be next year, but we must get to work right now thinking about 
how we are going to meet the need for affordable housing for the very 
low and extremely low income people who live in our country.
  I ask unanimous consent that a summary of the legislation be printed 
with my statement.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. BOND. Madam President, I send the bill to the desk and ask for 
its appropriate referral.
  The ACTING PRESIDENT pro tempore. The bill will be received and 
appropriately referred.

 Affordable Housing Expansion Act of 2002 (Introduced by Senators Bond 
                              and Collins)


 TITLE I--PRODUCTION OF NEW HOUSING FOR EXTREMELY LOW-INCOME AND VERY 
                          LOW-INCOME FAMILIES

       Establishes a $1 billion block grant program beginning in 
     2003 that would allocate funds to state housing finance 
     agencies on a per capita basis according to the population of 
     the state. No state would receive less than $6 million.
       Allows funds to be used for acquisition, new construction, 
     reconstruction, or moderate or substantial rehabilitation of 
     affordable housing; permits funds to be used for 
     rehabilitation needs and preservation of existing assisted 
     low-income housing (although no more than 20 percent of the 
     funds can be used for rehabilitation and preservation); 
     allows conversion of existing housing to housing for the 
     elderly or for persons with disabilities.
       Requires states to meet a 25 percent matching requirement 
     to ensure accountability and to leverage additional funds.
       Requires housing developed to be low- and mixed-income 
     housing with at least 30 percent of the assisted unites 
     targeted to extremely low-income families (families at or 
     below 30 percent of medium income); remaining assisted units 
     would be targeted to very low-income families.
       Rents for assisted units are modeled after the low-income 
     tax credit program only with deeper targeting--extremely low-
     income families would pay no more than 25 percent of 30 
     percent of medium income and very low-income families would 
     pay no more than 25 percent of 50 percent of medium income.
       Authorizes a new multifamily risk-sharing mortgage 
     insurance program to help underwrite housing assisted under 
     this title.


                 TITLE II--SECTION 8 HOUSING PRODUCTION

     Thrifty vouchers
       Establishes a ``Thrify'' Voucher Housing Production program 
     that targets section 8

[[Page S8922]]

     project-based assistance for new construction, substantial 
     rehabilitation and preservation with eligible families 
     defined as ``extremely low-income families'' (those at or 
     below 30 percent of adjusted income).
       Limits assistance to 25 percent of units in a building 
     while limiting the cost for a unit at 75 percent of the 
     payment standard or fair market rent (really is operating 
     costs, utility costs and reasonable return on operating 
     costs.). Initial rent term would be 15 years with renewals 
     through at least year 40. The premise is to use anticipated 
     section 8 project-based funds to capitalize the cost of new 
     construction, substantial rehabilitation and preservation 
     while subsidizing these costs over some 40 years plus. 
     Thrifty vouchers could be used in conjunction with low-income 
     housing tax credits, HOME, CDBG or the (Title I) ``Bond'' 
     Housing Production Block Grant program.
       New Thrifty Vouchers would be distributed under the formula 
     used for the HOME program.
     Reallocation of vouchers
       New section 8 provision would provide for the reallocation 
     of section 8 funds where a PHA fails to utilize at least 90 
     percent of allocated section 8 tenant-based assistance, and 
     then 95 percent after 16 months from notice on failure to 
     meet the 90 percent utilization requirements. Allows PHAs to 
     challenge for a new survey of market rents in an area for an 
     increased rent payment standard or fair market rent. Provides 
     for a reallocation to another PHA, State or local agency, or 
     nonprofit/for-profit capable of administering section 8 
     assistance upon a finding that a PHA has failed to meet these 
     performance requirements. Upon a finding that there is a lack 
     of eligible families for section 8 assistance in an are, HUD 
     may reallocate section 8 assistance to other needy areas.
     Preservation of sections 8 assistance on hud--held and owned 
         properties
       New provision that requires HUD to maintain existing 
     section 8 project-based assistance for any HUD-owned or HUD-
     held multifamily projects upon disposition, except where HUD 
     determines the project is not viable. (Mirrors Bond provision 
     carried in annual VA/HUD Appropriations Acts for the 
     disposition of HUD-owned or HUD-held multifamily projects 
     that serve elderly or disabled families.)


            TITLE III--PUBLIC HOUSING LOAN GUARANTEE PROGRAM

       Establishes a new HUD loan guarantee program for public 
     housing agencies for the rehabilitation of a portion of 
     public housing or the development of off-site public housing 
     in mixed income developments. Long term debt is tied to the 
     pro-rata share of funds under the Captial and Operating Funds 
     that would be allocated to the units rehabilitated or 
     constructed over a maximum of 30 years.

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

                                S. 2967

       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 ``Affordable Housing Expansion 
     Act of 2002''.

     SEC. 2. PURPOSE.

       The purposes of this Act are to expand the production of 
     affordable low-income housing for extremely low-, very low- 
     and low-income families:
       (1) through the creation of a housing production block 
     grant program that will be administered through state housing 
     finance agencies;
       (2) through new section 8 ``thrifty'' voucher authority; 
     and
       (3) through new loan guarantee authority for public housing 
     agencies.

     SEC. 3. DEFINITIONS.

       For purposes of this Act, the following definitions shall 
     apply:
       (1) The term ``extremely low-income families'' shall mean 
     persons and families (as that term is defined in section 
     3(b)(3) of the United States Housing Act of 1937) whose 
     incomes do not exceed--
       (A) 30 percent of the area medium as determined by the 
     Secretary with adjustments for smaller and larger families 
     and for unusually high or low family incomes; or
       (B) 30 percent of the national nonmetropolitan medium 
     income, if it is higher than the area medium income.
       (2) The term ``insular areas'' shall mean the Commonwealth 
     of the Northern Mariana Islands, Guam, the Virgin Islands, 
     America Samoa, and any other territory of possession of the 
     United States
       (3) The term ``low-income families'' shall have the same 
     meaning as provided under section 3(b)(2) of the United 
     States Housing Act of 1937.
       (4) The term ``project-based assistance'' shall have the 
     meaning given such term in section 16(c)(6) of the United 
     States Housing Act of 1937, except that such term includes 
     assistance under any successor programs to the programs 
     referred to in such section.
       (5) The term ``public housing agency'' shall have the 
     meaning given such term in section 3(b) of the United States 
     Housing Act of 1937.
       (6) The term ``Secretary'' shall mean the Secretary of 
     Housing and Urban Development.
       (7) The term ``section 8 assistance'' or ``voucher'' shall 
     have the meaning given such term in section 8(f) of the 
     United States Housing Act of 1937.
       (8) The term ``State'' shall mean any State of the United 
     States, the District of Columbia, and the Commonwealth of 
     Puerto Rico.
       (9) The term ``State housing finance agency'' shall mean 
     any State or local housing finance agency that has been 
     designated by a State or insular area to administer this 
     program.
       (10) The term ``very low-income families'' shall have the 
     same meaning as provided under section 3(b) of the United 
     States Housing Act of 1937.

TITLE I--PRODUCTION OF AFFORDABLE HOUSING FOR EXTREMELY LOW-INCOME AND 
                        VERY LOW-INCOME FAMILIES

     SEC. 101. AUTHORITY.

       The Secretary of Housing and Urban Development shall make 
     funds available to State housing finance agencies as provided 
     under section 102 for the rehabilitation of existing low-
     income housing, for the development of new affordable low-
     income housing units, and for the preservation of existing 
     low-income housing units that are at risk of becoming 
     unavailable for low-income families.

     SEC. 102. ALLOCATION OF RESOURCES.

       (a) In General.--The Secretary shall allocate funds 
     approved in appropriations Acts to State housing finance 
     agencies to carry out this Title. Subject to the requirements 
     of subsection (b) and as otherwise provided in this 
     subsection, each State housing finance agency shall be 
     eligible to receive an amount of funds equal to the 
     proportion of the per capita population of the State in 
     relation to the population of the United States which shall 
     be determined on the basis of the most recent decennial 
     census for which data are available. For each fiscal year, 
     the Secretary shall reserve for grants to Indian tribes 1 
     percent of the amount appropriated under the applicable 
     appropriations Act. The Secretary shall provide for 
     distribution of amounts under this subsection to Indian 
     tribes on the basis of a competition conducted pursuant to 
     specific criteria developed after notice and public comment.
       (b) Minimum State Allocation.--If the allocation under 
     subsection (a), when applied to the funds approved under this 
     section in appropriations Acts for a fiscal year, would 
     result in funding of less than $6,000,000 for any State, the 
     allocation for such State shall be $6,000,000 and the 
     increase shall be deducted pro rata from the allocation of 
     all the other States.
       (c) Criteria for Reallocation.--The Secretary shall 
     reallocate any funds previously allocated to a State housing 
     finance agency for any fiscal year in which the State housing 
     finance agency fails to provide its match requirements or 
     fails to submit an affordable housing expansion plan that is 
     approved by the Secretary. All such funds shall be 
     reallocated pursuant to the formula provided under subsection 
     (a).

     SEC. 103. AFFORDABLE HOUSING EXPANSION PLAN.

       (a) Submission of Affordable Housing Expansion Plan.--The 
     Secretary shall allocate funds under section 102 to a State 
     housing finance agency only if the State housing finance 
     agency has submitted an affordable housing expansion plan, 
     with annual updates, approved by the Secretary and 
     designed to meet the overall very low- and low-income 
     housing needs of both the rural and urban areas of the 
     State in which the State housing finance agency is 
     located. This plan shall be developed in conjunction with 
     the housing strategies developed for the applicable States 
     and localities under section 105 of Cranston-Gonzalez 
     National Affordable Housing Act.
       (b) Citizen Participation.--Before submitting an affordable 
     housing expansion plan to the Secretary, a State housing 
     finance agency shall--
       (1) make available to citizens of the State, public 
     agencies and other interested parties information regarding 
     the amount of assistance expected to be made available under 
     this Title and the range of investment or other uses of such 
     assistance that the State housing finance agency may 
     undertake;
       (2) publish the proposed plan in a manner that, in the 
     determination of the Secretary, affords affected citizens, 
     public agencies, and other interested parties a reasonable 
     opportunity to review its contents and to submit comments on 
     the proposed plan;
       (3) hold one or more public hearings to obtain the views of 
     citizens, public agencies, and other interested parties on 
     the housing needs of the State; and
       (4) provide citizens, public agencies, and other interested 
     parties with reasonable access to records regarding the uses 
     of any assistance that the State housing finance agency may 
     have received under this Title during the preceding 5 years.

     SEC. 104. ELIGIBLE USE OF FUNDS.

       Funds made available under this title shall be used for--
       (1) the acquisition, new construction, reconstruction, or 
     moderate or substantial rehabilitation of affordable housing 
     for mixed income rental housing where the assistance provided 
     under section 102 shall be used to assist units targeted to 
     very low-income and extremely low-income families, including 
     large families, the elderly, and persons with disabilities.
       (2) the moderate and substantial rehabilitation of rental 
     housing units that are currently assisted under State or 
     Federal low-income housing programs;
       (3) the preservation of Federal and State low-income 
     housing units that are at risk of

[[Page S8923]]

     being no longer affordable to low-income families;
       (4) the purchase and creation of land trusts to allow low-
     income families an opportunity to rent homes in areas of low-
     vacancy;
       (5) conversion of public housing to assisted living 
     facilities for the very low- and extremely-low income 
     elderly;
       (6) conversion of section 202 elderly housing to assisted 
     living facilities for the very low- and extremely-low income 
     elderly;
       (7) conversion of HUD-owned or HUD-held multifamily 
     properties upon disposition to housing for the very low- and 
     extremely low-income elderly, housing for very low-income and 
     extremely low-income persons with disabilities and to 
     assisted living facilities for the very low- and extremely 
     low-income elderly; and
       (8) creation of sinking funds to maintain reserves held by 
     State housing finance agencies to preserve the low-income 
     character of the housing.

     SEC. 105. MATCHING REQUIREMENTS.

       (a) In General.--Each State housing finance agency shall 
     make contributions for activities under this title that 
     total, throughout a fiscal year, not less than 25 percent of 
     the funds made available under this title.
       (b) Allowable Amounts.--
       (1) Application to housing.--A contribution shall be 
     recognized for purposes of a match under subsection (a) only 
     if--
       (A) made with respect to housing that qualifies as 
     affordable housing under section 107; or
       (B) made with respect to any portion of a project for which 
     not less than 50 percent of the units qualify as affordable 
     housing under section 107.
       (2) Form.--A contribution may be in the form of--
       (A) cash contributions from non-Federal sources, which may 
     not include funds from a grant under section 106(b) or 
     section 106(d) of the Housing and Community Development Act 
     of 1974 or from the value of low income tax credits allocated 
     pursuant to the Internal Revenue Code;
       (B) the value of taxes, fees or other charges that are 
     normally and customarily imposed but are waived, forgone, or 
     deferred in a manner that achieves affordability of housing 
     assisted under this title;
       (C) the value of land or other real property as appraised 
     according to procedures acceptable to the Secretary;
       (D) the value of investment in on-site and off-site 
     infrastructure directly required for affordable housing 
     assisted under this title;
       (E) the reasonable value of any site-preparation and 
     construction materials and any donated or voluntary labor in 
     connection with the site-preparation for, construction or 
     rehabilitation of affordable housing; and
       (F) such other contributions to affordable housing as the 
     Secretary considers appropriate.
       (3) Administrative expenses.--Contributions for 
     administrative expenses may not be recognized for purposes of 
     this section.

     SEC. 106. DISTRIBUTION OF ASSISTANCE.

       Each State housing finance agency shall ensure that the 
     development of new housing under this section is designed to 
     meet both urban and rural needs, and prioritize funding, to 
     the extent practicable, in conjunction with the economic 
     redevelopment of an area.

     SEC. 107. ELIGIBLE AFFORDABLE HOUSING.

       (a) Production of Affordable Housing.--In the case of new 
     construction, housing shall qualify for assistance under this 
     title only if the housing--
       (1) is required to have not less than 30 percent of the 
     assisted units occupied by extremely low-income families who 
     pay as a contribution towards rent (not including any Federal 
     or State rental subsidy provided on behalf of the family) not 
     more than 25 percent of the adjusted income of a family whose 
     income equals 30 percent of the median income for the area, 
     as determined by the Secretary, with adjustments for the 
     number of bedrooms in the unit, except that the Secretary may 
     establish income ceilings higher or lower than 30 percent of 
     the median income for the area on the basis of the 
     Secretary's findings that variations are necessary because of 
     the prevailing levels of construction costs or fair market 
     rents, or unusually high or low family incomes;
       (2) except as provided under paragraph (1), is required to 
     have all assisted units be occupied by very low-income 
     families who pay as a contribution towards rent (not 
     including any Federal or State rental subsidy provided on 
     behalf of the family) not more than 25 percent of 50 percent 
     of the median income for an area; and
       (3) will remain affordable under the requirements provided 
     in paragraphs (1) and (2), according to legally binding 
     commitments satisfactory to the Secretary, for not less than 
     40 years, without regard to the term of the mortgage or to 
     the transfer of ownership, or for such period that the 
     Secretary determines is the longest feasible period of time 
     consistent with sound economics and the purposes of this Act, 
     including foreclosure where the responsibility for 
     maintaining the low-income character of the property will be 
     the responsibility of the State housing finance agency.
       (b) Priority for Extremely Low-Income Families.--State 
     housing finance agencies shall give priority for funding to 
     those projects that maximize the availability and 
     affordability of housing for extremely low-income families.

     SEC. 108. TENANT SELECTION.

       An owner of any housing assisted under this Title shall 
     establish tenant selection procedures consistent with the 
     affordable housing expansion plan of the State housing 
     finance agency.

     SEC. 109. PROHIBITION ON USE OF FUNDS FOR SERVICE 
                   COORDINATORS OR SUPPORTIVE SERVICES.

       No funds under this Act may be used for service 
     coordinators or supportive services.

     SEC. 110. PENALTIES FOR MISUSE OF FUNDS.

       The Secretary shall recapture any assistance awarded under 
     this Title to the extent the assistance has been used for 
     impermissible purposes. To the extent the Secretary 
     identifies a pattern and practice regarding the misuse of 
     funds awarded under this Title, the Secretary shall deny 
     assistance to that State for up to 5 years, subject to notice 
     and an opportunity for judicial review.

     SEC. 111. SUBSIDY LAYERING REQUIREMENTS.

       The requirements of section 102(d) of the Department of 
     Housing and Urban Development Reform Act of 1989 may be 
     satisfied in connection with assistance, including a 
     commitment to insure a mortgage, provided under this Title by 
     a certification of a State housing finance agency to the 
     Secretary that the combination of assistance within the 
     jurisdiction of the Secretary and other government assistance 
     provided in connection with a property assisted under this 
     Title shall not be any greater than is necessary to provide 
     affordable housing.

     SEC. 112. MULTIFAMILY RISK-SHARING MORTGAGE INSURANCE 
                   PROGRAM.

       The Secretary shall carry out a mortgage insurance program 
     through the Federal Housing Administration in conjunction 
     with State housing finance agencies to insure multifamily 
     mortgages for housing that qualifies under this Title. This 
     program shall be consistent with the requirements established 
     under section 542 of the Housing and Community Development 
     Act of 1992, except that housing that meet the 
     requirements of this Title shall be eligible for mortgage 
     insurance.

     SEC. 113. EFFECTIVE DATE AND REGULATIONS.

       (a) Effective Date.--This Title shall take effect upon the 
     date of enactment of this Act.
       (b) Rules.--The Secretary shall issue notice and comment 
     rulemaking with final regulations issued no later than 6 
     months after the date of enactment of this Act.

     SEC. 114. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated $1,000,000,000 for 
     fiscal year 2003, of which no more than 20 percent of such 
     funds may be used for rehabilitation needs and to preserve 
     existing housing for low- income families.

                 TITLE II--SECTION 8 HOUSING PRODUCTION

     SEC. 201. PROJECT-BASED VOUCHERS AND THRIFTY VOUCHERS.

       (a) In General.--Section 8(o)(13) of the United States 
     Housing Act of 1937 is amended--
       (1) in subparagraph (C)(ii), by inserting before the period 
     at the end the following: ``, revitalizing a low-income 
     community, or preventing the displacement of extremely low- 
     income families'';
       (2) in subparagraph (D)(ii), by striking ``apply in the 
     case of'' and all that follows through the period and 
     inserting the following: ``apply--
       (I) in the case of assistance under a contract for housing 
     consisting of single family properties (buildings with 1 to 4 
     units);
       (II) for dwelling units that are specifically made 
     available for households comprised of elderly families or 
     disabled families; or
       (III) outside of a qualified census tract, for buildings 
     with 5 to 25 units or with dwelling units that are 
     specifically made available for families receiving supportive 
     services.
       For purposes of this clause, the term `qualified census 
     tract' has the same meaning given that term in section 42(d) 
     of the Internal Revenue Code of 1986. The Secretary may waive 
     the limitations of this clause, consistent with the 
     obligation to affirmatively further fair housing 
     practices.'';
       (3) in subparagraph (F), by striking ``10 years'' and 
     inserting ``15 years'';
       (4) by adding the following to the end:
       ``(L) Use of assistance in conjunction with public housing 
     capital funds.--
       ``(i) Capital fund.--Notwithstanding any provision to the 
     contrary in this Act, a public housing agency may attach 
     assistance under this paragraph to a structure or unit that 
     receives assistance allocated to the public housing agency 
     under the Capital Fund, established by section 9(d).
       ``(ii) Operating fund.--A unit that receives assistance 
     under this paragraph shall not be eligible for assistance 
     under the Operating Fund established by section 9(e).
       ``(M) Thrifty vouchers.--
       ``(i) In general.--For the purpose of encouraging the 
     production or preservation of housing affordable to extremely 
     low-income families, a public housing agency may use amounts 
     provided under an annual contributions contract under this 
     subsection to enter into a housing assistance payment 
     contract for Thrifty Voucher assistance that is attached to 
     the structure. Except as otherwise specified in this 
     paragraph, such housing assistance contract shall be subject 
     to the limitations and requirements of subparagraphs (A), 
     (B), (C), (D), (E), (F), (G), (J), (K) and (L).
       ``(ii) Use for new production, substantial rehabilitation, 
     and preservation.--Assistance under this paragraph may only 
     be attached to a structure that is newly constructed, 
     acquired for preservation as affordable housing, or 
     substantially rehabilitated.

[[Page S8924]]

       ``(iii) Eligible families.--A prospective tenant of a unit 
     that is assisted under this subparagraph must qualify as an 
     extremely low-income family at the commencement of the 
     proposed occupancy by the tenant.
       ``(iv) Limitation.--Assistance under this subparagraph may 
     not be attached to more than 25 percent of the units in a 
     building. For purposes of this clause, a project consisting 
     of single family structures shall be treated as 1 building if 
     the single family structures are owned, and constructed, 
     substantially rehabilitated, or acquired for preservation 
     under a common plan.
       ``(v) Rent calculation.--
       ``(I) In general.--A housing assistance payment contract 
     entered into under this subparagraph shall establish the 
     gross rent for each unit assisted in an amount equal to the 
     per unit operating cost of the property plus the applicable 
     utility allowance of the public housing agency for tenant-
     paid utilities. An owner may accept a gross rent that is less 
     than the per unit operating cost of the property plus the 
     applicable utility allowance, if the gross rent exceeds the 
     limitation under subclause (IV).
       ``(II) Unit operating cost.--As used in this subparagraph, 
     the unit operating cost is the allocable share of the 
     ordinary and customary expenses of the unit incurred to 
     operate the property, including applicable owner- paid 
     utilities, contribution to the replacement reserve, asset 
     management fees, and a cash flow allowance equal to 15 
     percent of all other allocable operating costs. A public 
     housing agency shall require an owner to demonstrate that the 
     unit operating cost for units assisted under this 
     subparagraph does not exceed the operating cost of other 
     units in the property that are not assisted under this 
     subparagraph, with appropriate adjustments for unit size, 
     and shall establish policies to ensure that expenses 
     included in the unit operating cost that are paid to the 
     owner or a related entity are reasonable and consistent 
     with prevailing costs in the community in which the 
     property is located. Required verification shall be 
     determined by the public housing agency.
       ``(III) Adjustment.--A public housing agency shall, upon 
     request, make an appropriate annual adjustment in the rent 
     established under this clause based on documented changes in 
     unit operating costs and any increase in the applicable fair 
     market rent or payment standard.
       ``(IV) Limitation.--Gross rent established under this 
     paragraph shall not exceed the greater of--
       ``(aa) 75 percent of the payment standard used by the 
     public housing agency for a dwelling unit of the same size; 
     or
       ``(bb) 75 percent of the applicable fair market rental.
       ``(V) Exception.--The Secretary is authorized to approve an 
     exception to the 75 percent limitation in subclause (IV) for 
     not more than 2 percent of the total number of vouchers 
     funded under this subsection, not to exceed 90 percent of the 
     payment standard or applicable fair market rental, if the 
     permitted maximum rent could not otherwise support the 
     reasonable operating cost of rental housing, and the public 
     housing agency can demonstrate a need for production or 
     preservation of affordable housing.
       ``(vi) Renewal of assistance.--
       ``(I) In general.--The Secretary shall increase the 
     adjusted allocation baseline for renewal of funding under 
     subsection (dd) for public housing agencies that attach 
     assistance under this paragraph to a structure.
       ``(II) Increase equivalent.--An increase under subclause 
     (I) shall equal the number of additional families that a 
     public housing agency can assist as a result of the reduced 
     payments permitted under this paragraph.
       ``(III) Exception to limitation on project-based 
     assistance.--The additional units assisted as a result of the 
     reduced payments permitted under this paragraph shall not be 
     considered in determining the compliance of a public housing 
     agency with the percentage limitation in subparagraph (B).
       ``(IV) Applicability.--This subparagraph shall not apply to 
     incremental assistance initially issued under this paragraph.
       ``(vii) Allocation of incremental assistance for use under 
     this paragraph.--
       ``(I) In general.--Incremental assistance appropriated for 
     use under this paragraph--
       ``(aa) shall be allocated for public housing agencies 
     within each State, after reserving appropriate amounts for 
     insular areas, in accordance with the formula established by 
     the Secretary under section 217(b) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12747(b)); and
       ``(bb) the Secretary shall obligate amounts that are 
     available for public housing agencies within each State, as 
     determined under item (aa), to qualified public housing 
     agencies within the State pursuant to specific criteria for 
     the selection of recipients for assistance in a notice 
     published in the Federal Register.
       ``(II) Recipients.--Subject to the allocation referred to 
     in subclause (I) and any additional criteria that the 
     Secretary may establish, the Secretary shall award such 
     incremental assistance for use under this paragraph to a 
     public housing agency that administers a program of tenant-
     based assistance under this subsection and--
       ``(aa) administers funds for the construction, 
     preservation, or substantial rehabilitation of rental housing 
     other than public housing; or
       ``(bb) has an agreement with an agency or entity that 
     administers funds for the construction, preservation, or 
     substantial rehabilitation of rental housing that will enable 
     a prospective developer of such housing to submit a single 
     application for both types of funds.
       ``(III) Limitation.--Incremental assistance for use under 
     this paragraph shall not be considered in determining 
     compliance by a public housing agency with the limitation in 
     subparagraph (B).
       ``(IV) National competition.--If the Secretary determines 
     that sufficient funds for incremental assistance for use 
     under this paragraph have not been appropriated for public 
     housing agencies within each State in accordance with the 
     formula established under section 217(b) of the Cranston-
     Gonzalez National Affordable Housing Act (42 U.S.C. 
     12747(b)), the Secretary may award such funds to qualified 
     public housing agencies through a national competition.
       ``(viii) Definitions.--In this subparagraph--
       ``(I) the term `substantial rehabilitation' means 
     rehabilitation expenditures paid or incurred with respect to 
     a unit, including its prorated share of work on common areas 
     or systems, of at least $25,000, which amount shall be 
     increased annually by the Secretary to reflect inflation, and 
     such increased amount shall be published in the Federal 
     Register; and
       ``(II) the term `extremely low-income families' means 
     persons and families (as that term is defined in section 
     3(b)(3)) whose incomes do not exceed--
       ``(aa) 30 percent of the area median income, as determined 
     by the Secretary with adjustments for smaller and larger 
     families and for unusually high or low family incomes; or
       ``(bb) 30 percent of the national nonmetropolitan median 
     income, if it is higher than the area median income.''.
       (b) Effective Date.--
       (1) In general.--This section and the amendments made by 
     this section shall take effect upon the date of enactment of 
     this Act.
       (2) Rules.--The Secretary shall promulgate rules, as may be 
     necessary, to carry out section 8(o)(13) of the United States 
     Housing Act of 1937, as amended by this Act, and shall 
     publish--
       (A) either proposed rules or interim rules not later than 6 
     months after the date of enactment of this Act; and
       (B) final rules not later than 1 year after the date of 
     enactment of this Act.

     SEC. 202. REALLOCATION OF VOUCHERS.

       (a) In General.--Section 8(dd) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(dd)) is amended--
       (1) by striking ``Subject to'' and inserting the following: 
     ``(1) In general.--Subject to''; and
       (2) by adding at the end the following: ``(2) Reallocation 
     of chronically unutilized vouchers.--
       ``(A) In general.--The Secretary may reduce the allocation 
     baseline, only to the extent that the reduction reflects the 
     lesser of the unutilized portion of tenant-based subsidies or 
     of budget authority provided under this section, of a public 
     housing agency that--
       ``(i) fails, in a fiscal year, beginning in the fiscal year 
     in which this Act is enacted, to utilize at least 90 percent 
     of its allocated number of tenant-based subsidies or at least 
     90 percent of the budget authority provided under this 
     section that has been under annual contributions contract for 
     12 months on the first day of the fiscal year, not taking 
     into account, in the numerator, funds used for services and 
     other activities under section 4; and
       ``(ii) fails, within 16 months after written notice by the 
     Secretary of a failure described in clause (i), to utilize at 
     least 95 percent of allocated vouchers for rental assistance 
     provided under this section or contracted budget authority 
     provided under this section with respect to vouchers that 
     have been under annual contributions contract for 12 months 
     on the first day of the fiscal year, not taking into account, 
     in the numerator, funds used for services and other 
     activities under section 4.
       ``(B) Notice to tenants and community.--When the Secretary 
     provides written warning to a public housing agency of a 
     failure described in subparagraph (A)(i), the Secretary shall 
     also publish notice of such failure in the Federal Register 
     and shall provide written notice of such failure to the 
     chairman of the subject public housing agency's resident 
     advisory board established pursuant to section 5A(e). Not 
     later than 14 days after the date of receipt by the public 
     housing agency of notice of a failure described in 
     subparagraph (A)(i), that public housing agency shall provide 
     a copy of such notice to all members of its resident advisory 
     board or boards.
       ``(C) Utilization rate determination.--
       ``(i) In general.--At the request of a public housing 
     agency, the Secretary shall determine the voucher utilization 
     rate of the public housing agency for use under subparagraph 
     (A), based on data regarding the utilization of vouchers from 
     the period beginning 6 months prior to the request of the 
     public housing agency.
       ``(ii) Eligibility of a PHA to request a new survey of fair 
     market rents.--If a public housing agency requests, within 60 
     days of receipt of the written notice by the Secretary of a 
     failure described in subparagraph (A)(i), that the Secretary 
     conduct a further survey of market rents in the area to 
     determine the accuracy of the applicable fair market rent or 
     the need for an exception payment standard, and the Secretary 
     determines as a result of such survey to increase the fair 
     market rent or payment standard,

[[Page S8925]]

     the written notice shall be considered null and void. Whether 
     a public housing agency complies with the standard under 
     subparagraph (A)(i) shall be determined based on the first 
     complete fiscal year in which the agency has the opportunity 
     to use the increased fair market rent or approved exception 
     payment standard. To be eligible to request a rent survey 
     under this clause, a public housing agency must use the 
     maximum allowable payment standard for that area for a period 
     of not less than 6 months prior to such request.
       ``(D) Determination of ineffective performance.--A 
     reallocation of chronically unutilized vouchers under this 
     subsection shall be deemed to be a determination that the 
     agency is not performing effectively under section 
     3(b)(6)(B)(iii).
       ``(3) Reallocation.--
       ``(A) In general.--The Secretary shall allocate the 
     contracts for the vouchers made available by the reduction in 
     baseline authority authorized under paragraph (2) in a manner 
     that ensures that applicants on the waiting list of the 
     public housing agency from which vouchers are reallocated may 
     continue to be served, consistent with this paragraph.
       ``(B) Metropolitan area.--
       ``(i) Designation of metropolitan administrator.--If 
     vouchers are reallocated from a public housing agency located 
     in a metropolitan area, the Secretary shall, based on a 
     public competitive process, designate a metropolitan 
     administrator for all or a portion of the metropolitan 
     statistical area in which that public housing agency is 
     located, in a manner consistent with clause (iv).
       ``(ii) Distribution of vouchers.--A metropolitan 
     administrator designated under clause (i) shall receive all 
     vouchers in that administrator's region made available 
     pursuant to paragraph (2).
       ``(iii) Eligible administrators.--The Secretary may select 
     as a metropolitan administrator an agency--
       ``(I) that--
       ``(aa) currently administers a voucher program serving 
     residents of the geographic area served by the agency whose 
     voucher allocation has been reduced;
       ``(bb) has the legal ability to serve such area; or
       ``(cc) has an agreement with the Secretary to serve such 
     area pursuant to section 3(b)(6)(B)(iii); and
       ``(II) that is--
       ``(aa) a public housing agency that administers a voucher 
     program;
       ``(bb) a State or local agency that has experience in 
     administering tenant-based assistance programs; or
       ``(cc) a nonprofit or for-profit agency that has experience 
     in administering tenant-based assistance programs.
       ``(iv) Selection process.--
       ``(I) Preference for certain public housing agencies.--The 
     Secretary may give preference in a competitive selection to a 
     public housing agency described in clause (iii)(II)(aa) over 
     other eligible administrators described in items (bb) and 
     (cc) of that clause (iii)(II), if the public housing agency--
       ``(aa) is a well-managed agency, based on objective 
     indicators, including a high rate of utilization of allocated 
     vouchers or contracted budget authority provided under this 
     section, and a high rate of compliance with eligibility and 
     rent determination requirements; and
       ``(bb) has demonstrated an ability to increase the number 
     of voucher holders residing in low poverty areas.
       ``(II) Selection criteria.--In selecting a metropolitan 
     administrator, the Secretary shall take into account--
       ``(aa) whether the entity has operated tenant-based 
     assistance programs in a manner that has not led to an 
     overconcentration of tenant-based subsidy holders in certain 
     areas;
       ``(bb) whether the entity has the administrative capacity 
     to administer the number of additional vouchers it is likely 
     to receive if it is selected as a metropolitan administrator 
     and to serve the geographic area served by agencies from 
     which vouchers are reallocated;
       ``(cc) the relative need for assistance under subsection 
     (o) of the eligible population not receiving housing 
     assistance in the area currently served by the entity; and
       ``(dd) any other criteria for choosing a metropolitan 
     administrator that the Secretary determines to be 
     appropriate.
       ``(C) Nonmetropolitan area.--
       ``(i) In general.--If vouchers are reallocated pursuant to 
     this subsection from a public housing agency that is located 
     in a nonmetropolitan area, the Secretary shall reallocate 
     such authority to a public housing agency or other eligible 
     administrator as specified in subparagraph (B)(iii). The 
     Secretary may designate an entity to receive vouchers 
     reallocated from all or a portion of the nonmetropolitan area 
     in a State.
       ``(ii) Selection.--In selecting an entity to receive 
     vouchers reallocated from a nonmetropolitan area, the 
     Secretary shall utilize the preferences and criteria in 
     subparagraph (B)(iv), and shall consider the relative 
     administrative costs likely to be incurred to serve families 
     that reside in the geographic area of the agency from which 
     the vouchers were reallocated.
       ``(D) Designation of a new administrator.--If, at any time, 
     the Secretary determines that the criteria established under 
     this paragraph for a metropolitan or nonmetropolitan 
     administrator are not met, the Secretary shall designate 
     another administrator.
       ``(E) Additional vouchers.--The Secretary shall ensure that 
     certain criteria or benchmarks regarding voucher success 
     rates and concentration of voucher holders are met each year 
     before providing an administrator with additional vouchers.
       ``(F) Lack of eligible families.--If the Secretary 
     determines that the primary cause of voucher underutilization 
     by a public housing agency under paragraph (2)(A) is a lack 
     of eligible families in the area of operation of the public 
     housing agency, the Secretary may establish criteria and 
     procedures to reallocate vouchers from that agency to another 
     public housing agency or another metropolitan or 
     nonmetropolitan administrator outside of the area of 
     operation of the public housing agency. First priority for 
     vouchers reallocated under this subparagraph shall be given 
     to an entity that has previously voluntarily relinquished to 
     the Secretary a portion of its allocated voucher budget 
     authority and has subsequently demonstrated a need for, and 
     an ability to use, such budget authority under criteria 
     established by the Secretary. Second priority shall be given 
     to an entity that serves a jurisdiction in the same State as 
     the agency from which vouchers are being reallocated.
       ``(4) Special populations.--Vouchers that have been 
     designated by the Secretary to be used by special populations 
     shall--
       ``(A) retain such designation on reallocation; and
       ``(B) be reallocated, if there is an eligible applicant 
     within the State or area that has experience administering a 
     voucher program for a special population, in accordance with 
     paragraphs (2) and (3).
       ``(5) Prompt reallocation.--Within 60 days of reducing a 
     public housing agency's allocation of vouchers pursuant to 
     paragraph (2) in an area for which the Secretary has 
     designated an administrator to receive vouchers reallocated 
     pursuant to this subsection, the Secretary shall enter into a 
     contract with the designated administrator for the 
     reallocated vouchers.''.
       (b) Rules of the Secretary.--The Secretary shall promulgate 
     rules to carry out this section not later than 6 months after 
     the date of enactment of this Act.

     SEC. 203. DISPOSITION OF HUD-HELD AND HUD-OWNED MULTIFAMILY 
                   PROJECTS.

       Notwithstanding any other provision of law, the Secretary 
     of Housing and Urban Development shall maintain any rental 
     assistance payments attached to any dwelling units under 
     section 8 of the United States Housing Act of 1937 for all 
     multifamily properties owned by the Secretary and multifamily 
     properties held by the Secretary for purposes of management 
     and disposition of such properties. To the extent, the 
     Secretary determines that a multifamily property owned by the 
     Secretary or held by the Secretary is not feasible for 
     continued rental assistance payments under section 8, the 
     Secretary may, in consultation with the tenants of that 
     property, contract for project-based rental assistance 
     payments with an owner or owners of other existing housing 
     properties.

            TITLE III--PUBLIC HOUSING LOAN GUARANTEE PROGRAM

     SEC. 301. PUBLIC HOUSING LOAN GUARANTEE PROGRAM.

       (a) Section 9 of the United States Housing Act of 1937 is 
     amended by inserting at the end the following new subsection:
       ``(o) Loan Guarantee Development Funding.--(1) In order to 
     facilitate the financing of the rehabilitation and 
     development needs of public housing, the Secretary is 
     authorized, upon such terms and conditions as the Secretary 
     may prescribe, to guarantee and make commitments to 
     guarantee, only to the extent or in such amounts as the 
     provided in appropriations Acts, loans or other financial 
     obligations entered between financial institutions and public 
     housing agencies, for the purpose of financing the 
     rehabilitation of a portion of public housing or the 
     development off-site of public housing in mixed income 
     developments (including demolition costs of the public 
     housing units to be replaced), provided that the number of 
     public housing units developed off-site replaces no less than 
     an equal number of on-site public housing units in a project. 
     Loans or other obligations guaranteed pursuant to this 
     subsection shall be in such form and denominations, have such 
     maturities, and be subject to such conditions as may be 
     prescribed by regulations issued by the Secretary.
       ``(2) Subject to the availability of appropriated funds, 
     the Secretary may not object to making a loan guarantee under 
     this subsection unless the rehabilitation or replacement 
     housing proposed by a public housing agency is inconsistent 
     with its Public Housing Agency Plan, as submitted under 
     section 5A, or the proposed terms of the guaranteed loan 
     constitutes an unacceptable financial risk to the public 
     housing agency or for repayment of the loan under this 
     subsection.
       ``(3) Notwithstanding any other provision of this title, 
     funding allocated to a public housing agency under 
     subsections (d)(2) and (e)(2) of this section for the capital 
     and operating funds are authorized for use in the payment of 
     the principal and interest due (including such servicing, 
     underwriting or other costs as may be specified in the 
     regulations of the secretary) on the loans or other 
     obligations guaranteed pursuant to this subsection.
       ``(4) The amount of any loan or other obligation guaranteed 
     under this subsection shall not exceed in total the pro-rata 
     amount of funds that would be allocated over a period not to 
     exceed 30 years under subsections

[[Page S8926]]

     (d)(2) and (e)(2) of this section on a per unit basis as a 
     percentage of the number of units that are designated to be 
     rehabilitated or replaced under this subsection by a public 
     housing agency as compared to the total number of units in 
     the public housing development, as determined on the basis of 
     funds made available under such subsections (d)(2) and (e)(2) 
     in the previous year. Any reduction in the total amount of 
     funds provided to a public housing agency under this section 
     in subsequent years shall not reduce the amount of funds to 
     be paid under a loan guaranteed under this subsection but 
     instead shall reduce the capital and operating funds which 
     are available for the other housing units in the public 
     housing development in that fiscal year. Any additional 
     income, including the receipt of rental income from tenants, 
     generated by the rehabilitated or replaced units may be used 
     to establish a loan loss reserve for the public housing 
     agency to assist in the repayment of the guaranteed loans or 
     other obligations under this subsection or to address any 
     shortfall in the operating or capital needs of the public 
     housing agency in any fiscal year. The Secretary may require 
     the payment of guaranteed loan premiums by a public housing 
     agency to support the creation of a loan loss reserve account 
     within the Department of Housing and Urban Development to 
     minimize the risk of loss associated with the repayment of 
     these guaranteed loans.
       ``(5) Subject to appropriations, the Secretary may use 
     funds from the Public Housing Capital Fund to (A) establish a 
     loan loss reserve account within the Department of Housing 
     and Urban Development to minimize the risk of loss associated 
     with the repayment of guaranteed loans made under this 
     subsection, or (B) make grants to a public housing agency for 
     capital investment needs or for the creation of a loan loss 
     reserve account to be used in conjunction with a loan 
     guarantee made under this subsection for the rehabilitation 
     of a portion of public housing or the development off-site of 
     public housing in mixed income developments (including 
     demolition costs of the public housing units to be replaced).
       ``(6) To assure the repayment of loans or other obligations 
     and charges incurred under this subsection and as a condition 
     for receiving such guarantees, the Secretary shall require 
     the public housing agency to enter into a contract, in a form 
     acceptable to the Secretary, for the repayment of notes or 
     other obligations guaranteed under this subsection and 
     furnish, at the discretion of the Secretary, such security as 
     may be deemed appropriate by the Secretary in making such 
     guarantees.
       ``(7) The full faith and credit of the United States is 
     pledged to the payment of all guarantees under this 
     subsection. Any such guarantee made by the Secretary shall be 
     conclusive evidence of the eligibility of the obligations for 
     such guarantee with respect to principal and interest, and 
     the validity of such guarantee so made shall be incontestable 
     in the hand of the holder of the guaranteed obligations.
       ``(8) The Secretary may, to the extent approved in 
     appropriations Acts, assist in the payment of all or a 
     portion of the principal and interest amount due under the 
     note or other obligation guaranteed under this subsection, if 
     the Secretary determines that the public housing agency is 
     unable to pay the amount it owes because of circumstances of 
     extreme hardship beyond the control of the public housing 
     agency.''.
       (b) Effective Date.--
       (1) In general.--This section and the amendments made by 
     this section shall take effect upon the date of enactment of 
     this Act.
       (2) Rules.--The Secretary shall promulgate rules, as may be 
     necessary, to carry out section 8(o)(13) of the United States 
     Housing Act of 1937, as amended by this Act, and shall 
     publish--
       (A) either proposed rules or interim rules not later than 6 
     months after the date of enactment of this Act; and
       (B) final rules not later than 1 year after the date of 
     enactment of this Act.
                                 ______
                                 
      By Mr. SARBANES (for himself, Mr. Jeffords, and Mr. Sessions):
  S. 2968. A bill to amend the American Battlefield Protection act of 
1996 to authorize the Secretary of the Interior to establish a 
battlefield acquisition grant program; to the Committee on Energy and 
Natural Resources.
  Mr. SARBANES. Madam President, today I am introducing legislation, 
together with my colleagues Senator Jeffords and Senator Sessions, 
which will help preserve significant sites associated with the Civil 
War. A similar companion bill has been introduced and has bipartisan 
support in the House of Representatives.
  According to the Report on the Nation's Civil War Battlefields, 
prepared by the Civil War Sites Advisory Commission, CWSAC, in July, 
1993, of the 384 principal Civil War battlefields, less than 20 percent 
have been protected for posterity and 60 percent have been lost or are 
in imminent danger of being fragmented by development and lost as 
coherent historic sites. To adequately address this problem, CWSAC 
recommended a federal investment of $10 million a year for seven years 
with a one-to-one Federal/non-Federal match.
  While Congress has yet to fund Civil War battlefield preservation at 
the levels recommended in the 1993 report, in recent years it has taken 
important steps to preserve our Civil War heritage. In Fiscal Years 
1999 and 2002, the Congress appropriated a total of $19 million in 
matching grants for battlefield protection. Thus far, these grants have 
preserved over 7,000 acres of key Civil War battlefields in 11 States.
  The legislation I am introducing today seeks to build upon these 
successes by directing the Secretary of the Interior to establish the 
Civil War Battlefield Acquisition Grant Program. The bill authorizes 
Civil War battlefield acquisition matching grants of $10 million per 
year for Fiscal Years 2004 through 2008. The legislation requires a 
non-Federal share of at least 50 percent, thus leveraging $20 million 
annually. State and local governments and non-profit organizations will 
be eligible to receive grants under the program. All lands acquired by 
these grants must be identified in the 1993 report and may only be 
purchased from landowners who voluntarily sell their interests.
  The legislation also directs the Secretary to update the Report on 
the Nation's Civil War Battlefields to reflect the activities carried 
out on the battlefields during the period between original publication 
of the report and the time of the update, including any changes or 
relevant developments relating to the battlefields during that period.
  In my view, this legislation represents an important opportunity to 
maintain and preserve tangible links to our past so that future 
generations may experience firsthand this most critical period in our 
nation's history.
  I ask unanimous consent that the text of the bill be printed in the 
Record. I urge my colleagues to join with me in supporting this 
important legislation.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2968

       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 ``Civil War Battlefield 
     Preservation Act of 2002''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) Civil War battlefields provide a means for the people 
     of the United States to understand a tragic period in the 
     history of the United States; and
       (2) according to the Report on the Nation's Civil War 
     Battlefields, prepared by the Civil War Sites Advisory 
     Commission, and dated July 1993, of the 384 principal Civil 
     War battlefields--
       (A) almost 20 percent are lost or fragmented;
       (B) 17 percent are in poor condition; and
       (C) 60 percent--
       (i) have been lost; or
       (ii) are in imminent danger of being--

       (I) fragmented by development; and
       (II) lost as coherent historic sites.

       (b) Purposes.--The purposes of this Act are--
       (1) to act quickly and proactively to preserve and protect 
     nationally significant Civil War battlefields through 
     conservation easements and fee-simple purchases of those 
     battlefields from willing sellers; and
       (2) to create partnerships among State and local 
     governments, regional entities, and the private sector to 
     preserve, conserve, and enhance nationally significant Civil 
     War battlefields.

     SEC. 3. BATTLEFIELD ACQUISITION GRANT PROGRAM.

       The American Battlefield Protection Act of 1996 (16 U.S.C. 
     469k) is amended--
       (1) by redesignating subsection (d) as paragraph (3) of 
     subsection (c), and indenting appropriately;
       (2) in paragraph (3) of subsection (c) (as redesignated by 
     paragraph (1))--
       (A) by striking ``Appropriations'' and inserting 
     ``appropriations''; and
       (B) by striking ``section'' and inserting ``subsection'';
       (3) by inserting after subsection (c) the following:
       ``(d) Battlefield Acquisition Grant Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Battlefield report.--The term `Battlefield Report' 
     means the document entitled `Report on the Nation's Civil War 
     Battlefields', prepared by the Civil War Sites Advisory 
     Commission, and dated July 1993.
       ``(B) Eligible entity.--The term `eligible entity' means a 
     State or local government.
       ``(C) Eligible site.--The term `eligible site' means a 
     site--
       ``(i) that is not within the exterior boundaries of a unit 
     of the National Park System; and

[[Page S8927]]

       ``(ii) that is identified in the Battlefield Report.
       ``(D) Secretary.--The term `Secretary' means the Secretary 
     of the Interior, acting through the American Battlefield 
     Protection Program.
       ``(2) Establishment.--The Secretary shall establish a 
     battlefield acquisition grant program under which the 
     Secretary may provide grants to eligible entities to pay the 
     Federal share of the cost of acquiring interests in eligible 
     sites for the preservation and protection of those eligible 
     sites.
       ``(3) Nonprofit partners.--An eligible entity may acquire 
     an interest in an eligible site using a grant under this 
     subsection in partnership with a nonprofit organization.
       ``(4) Non-federal share.--The non-Federal share of the 
     total cost of acquiring an interest in an eligible site under 
     this subsection shall be not less than 50 percent.
       ``(5) Limitation on land use.--An interest in an eligible 
     site acquired under this subsection shall be subject to 
     section 6(f)(3) of the Land and Water Conservation Fund Act 
     of 1965 (16 U.S.C. 460l-8(f)(3)).
       ``(6) Reports.--
       ``(A) In general.--Not later than 5 years after the date of 
     enactment of this subparagraph, the Secretary shall submit to 
     Congress a report on the activities carried out under this 
     subsection.
       ``(B) Update of battlefield report.--Not later than 2 years 
     after the date of enactment of this subsection, the Secretary 
     shall submit to Congress a report that updates the 
     Battlefield Report to reflect--
       ``(i) preservation activities carried out at the 384 
     battlefields during the period between publication of the 
     Battlefield Report and the update;
       ``(ii) changes in the condition of the battlefields during 
     that period; and
       ``(iii) any other relevant developments relating to the 
     battlefields during that period.
       ``(7) Authorization of appropriations.--
       ``(A) In general.--There is authorized to be appropriated 
     to the Secretary from the Land and Water Conservation Fund to 
     provide grants under this subsection $10,000,000 for each of 
     fiscal years 2004 through 2008.
       ``(B) Update of battlefield report.--There is authorized to 
     be appropriated to the Secretary to carry out paragraph 
     (6)(B) $500,000.''; and
       (4) in subsection (e)--
       (A) in paragraph (1), by striking ``as of'' and all that 
     follows through the period and inserting ``on September 30, 
     2008.''; and
       (B) in paragraph (2), by inserting ``and provide 
     battlefields acquisition grants'' after ``studies''.
                                 ______
                                 
      By Mr. FEINGOLD:
  S. 2970. A bill to amend the XVIII of the Social Security act to 
assure fair and adequate payment for high-risk medicare beneficiaries 
and to establish payment incentives and to evaluate clinical methods 
for assuring quality services to people with serious and disabling 
chronic conditions; to the Committee on Finance.
  Mr. FEINGOLD. Madam President, I rise today to introduce the 
Promoting Care for the Frail Elderly Act of 2002, which is of critical 
importance to the most vulnerable Medicare beneficiaries, disabled 
seniors and those with complex medical conditions.
  A number of States have successfully chosen to serve seniors and the 
disabled by combining Medicare and Medicaid services through a waiver 
approved by the Department of Health and Human Services that integrates 
services under Medicare and Medicaid capitated financing arrangements. 
These programs provide beneficiaries with a comprehensive benefit 
package that combines the services traditionally provided by Medicare, 
Medicaid, and home and community based wavier programs.
  In my home State of Wisconsin, the Wisconsin Partnership Program, 
WPP, is one such success, a community-based program that has improved 
the quality, access, and cost-effectiveness of the care delivered to 
its beneficiaries. Perhaps most important to the beneficiaries, these 
programs help the disabled and the frail elderly remain in their own 
community, and avoid institutionalized care. Wisconsin is lucky to have 
four such programs across our State: Elder Care and Community Living 
Alliance of Dane County, Community Care for the Elderly of Milwaukee 
County, and Community Health Partnership of Eau Claire, Dunn, and 
Chippewa Counties.
  In order to qualify for these programs, a person must be Medicaid-
eligible, have physical disabilities or frailties of aging, and require 
a level of care provided by nursing homes. Through programs such as the 
Wisconsin Partnership Program, these frail elderly and disabled 
beneficiaries are able to receive quality preventive care up front, 
which allows more beneficiaries to stay in their communities and 
reduces the rate of hospitalization.
  In Wisconsin, about 26 percent of all Medicaid recipients age 65 or 
older are in nursing homes. This rate drops dramatically for those 
enrolled in the Wisconsin Partnership Program, where only 5.9 percent 
of recipients age 65 or older are in nursing homes.
  While the Wisconsin Partnership Program is a success, we must ensure 
that the Federal Government continues to support these State-based 
solutions to our long-term care needs and other specialty managed care 
programs that focus on frail, chronically-ill seniors. The current 
formula used to cover those enrolled in Medicare managed care programs 
overpays for healthy beneficiaries and underpays for the frail elderly 
and disabled. This payment method creates a backwards incentive for 
plans to avoid serving the most vulnerable segment of the Medicare 
population, the very seniors who could benefit most from program such 
as the Wisconsin Partnership Program.
  While a number of steps have been taken to improve these payment 
methods over the past four years, we must ensure that they meet the 
needs of Medicare beneficiaries with complex care needs.
  This legislation will help develop an appropriate incentive for 
specialty managed care programs serving a disproportionate number of 
frail, medically complex beneficiaries. My legislation will take 
several steps toward meeting this goal. First it will require the 
Center for Medicare and Medicaid Services to evaluate alternative risk 
adjustment methods that account for the higher costs borne by plans 
with a disproportionate number of high cost beneficiaries.
  During this study, it will also implement the recommendations of the 
Medicare Payment Advisory Commission by permitting these plans that 
currently operate under demonstration authority to maintain existing 
payment formulas until the Secretary devises a risk adjustment method 
that pays adequately for high risk enrollees. At the same time, it 
would also direct MedPAC to evaluate appropriate methods to adjust 
payment rates based on the makeup of the beneficiaries.
  Finally, my legislation would also authorize the Secretary to conduct 
a demonstration to enhance care and improve outcomes for frail, 
vulnerable Medicare beneficiaries.
  I would also like to make clear that this legislation uses existing 
funds to pay for these initiatives, and is thus budget neutral. It 
authorizes the demonstration program within existing dollars and would 
also provide additional funding for the frailty adjustment with 
existing Medicare+Choice dollars.
  Fundamental long-term care reform is vital to any health care reform 
that Congress may consider. As part of these reforms, we must support 
state and local efforts to encourage care for the most vulnerable 
populations. We must provide our seniors and disabled with real 
choices. They are entitled to the opportunity to continue to live in 
the homes and communities that they helped build and sustain. I urge my 
colleagues to support this measure that will help provide a measure of 
support for the most frail elderly and disabled to allow them to stay 
in their own homes.
                                 ______
                                 
      By Mr. BINGAMAN:
  S. 2971. A bill to amend the Transportation Equity Act for the 21st 
Century to provide the Highway Trust Fund additional funding for Indian 
reservation roads, and for other purposes; to the Committee on Indian 
Affairs.
  Mr. BINGAMAN. Mr. President, I am very pleased today to introduce the 
Tribal Transportation Program Improvement Act of 2002. The goal of this 
legislation is to help provide safe and efficient transportation 
throughout Indian country. At the same time, this bill will help 
promote economic development, self-determination, and employment of 
Indians and Alaska Natives. I believe the Federal Government has an 
obligation to provide safe and efficient transportation for all tribes. 
Indians pay the same Federal gasoline, tire, and other taxes, as all 
other Americans and are entitled to the same quality of transportation.
  This bill is a 6-year reauthorization and improvement of the Indian 
Reservation Roads program, which funds transportation programs for all 
tribes. Next year, Congress must reauthorize

[[Page S8928]]

the IRR program, along with all other transportation programs in TEA-
21. I am introducing the bill today as a first step in that process.
  Congress has long recognized the importance of improving 
transportation and access to tribal lands. The Indian Reservation Roads 
Program was established in 1928, and in 1946 the BIA and the FHWA 
executed the first memorandum of agreement for joint administration of 
the program. Since 1982, funding for tribal transportation programs as 
been provided from the Federal Highway Trust Fund. Major changes to the 
program were again made in 1998 as part of TEA-21.
  Today, the Indian Reservation Roads program serves more than 560 
federally recognized Indian tribes and Alaskan native villages in 33 
States. The IRR system comprises 25,700 miles of BIA and tribally owned 
roads and another 25,600 miles of State, county, and local government 
public roads. There are also 4,115 bridges on the IRR system, and one 
ferryboat operation, the Inchelium-Gifford Ferry in Washington State.
  Of the 25,700 miles of BIA and tribal roads on the IRR system, only 
about one quarter are paved. Only about 40 percent of the 25,600 miles 
of state, county, or local government IRR roads are paved. Together, 
over two-thirds of all IRR roads are unpaved. Many of these unpaved 
roads are not passable in bad weather. In addition, about 140 of the 
753 bridges owned by the BIA are currently rated as deficient.
  Some of the roads on tribal lands resemble roads in third-world 
countries. In some cases, the roads are little more than wheel tracks. 
Even though the IRR system perhaps the most rudimentary of any 
transportation network in the country, over 2 billion vehicle miles are 
annually traveled on the system.
  According to the Federal Highway Administration's most recent 
assessment of the Nation's highways, bridges, and transit, only 34 
percent of paved IRR roads are rated in good condition, 37 percent are 
rated only fair, and 29 percent are rated poor. Of course, these 
ratings apply only to the paved roads on the IRR system, not the 33,000 
miles of dirt and gravel roads.
  The poor road quality also has a serious impact on highway safety. 
According to FHWA, the highway fatality rate on Indian Reservation 
Roads is four times above the national average. Automobile accidents 
are the number one cause of death among young American Indians.
  Reflecting the current poor state of roads throughout the Indian 
country, FHWA now estimates the backlog of improvement needs for IRR 
roads at a whopping $6.8 billion dollars.
  This year, the authorized funding level for IRR is $275 million from 
the highway trust fund. As required in TEA-21, the BIA distributes 
highway funding to federally recognized tribes each year using a 
relative need formula. This formula reflects the cost to improve 
eligible roads, road usage, and population of each tribe. Some 
modifications to the formula are currently being made as part of a 
negotiated rule making.
  I hope all Senators recognize the broad scope of the IRR program and 
its impact on 33 of the 50 States. I'd like to read a list of the 
fiscal year 2002 distribution of IRR funding in the States that have 
tribal roads and ask unanimous consent that the table be printed in the 
Record.
  There being no objection, the table was ordered to be printed in the 
Record, as follows:

     EXHIBIT 1.--APPROXIMATE DISTRIBUTION OF FISCAL YEAR 2002 INDIAN
                        RESERVATION ROAD FUNDING
------------------------------------------------------------------------
                                                            Funding to
                          State                               tribes
------------------------------------------------------------------------
Arizona.................................................     $56,100,000
Oklahoma................................................      34,000,000
New Mexico..............................................      31,900,000
Alaska..................................................      18,500,000
Montana.................................................      13,600,000
South Dakota............................................      11,700,000
Washington..............................................      10,100,000
Wisconsin...............................................       6,600,000
North Dakota............................................       6,500,000
Minnesota...............................................       5,780,000
California..............................................       5,100,000
Oregon..................................................       3,900,000
Utah....................................................       2,970,000
Idaho...................................................       2,850,000
Wyoming.................................................       2,070,000
Michigan................................................       1,560,000
Nevada..................................................       1,290,000
North Carolina..........................................       1,190,000
Colorado................................................       1,100,000
New York................................................         949,000
Maine...................................................         890,000
Kansas..................................................         851,000
Mississippi.............................................         706,000
Nebraska................................................         626,000
Florida.................................................         550,000
Texas...................................................         220,000
Louisiana...............................................         197,000
Rhode Island............................................         162,000
Iowa....................................................         126,000
Alabama.................................................         100,000
South Carolina..........................................          89,000
Connecticut.............................................          83,000
Massachusetts...........................................          47,000
------------------------------------------------------------------------
Source: BIA. Data are approximate because some reservations and roads
  extend into more than one state.

  I know every senator is keenly aware of the importance of 
transportation to the basic quality of life and economic development of 
a region. Safe roads are essential for children to get to school, for 
sick and elderly to receive basic health and medical treatment, and for 
food and other necessities to move to shops and to consumers. Moreover, 
transportation is critical to any community's efforts to sustain robust 
economies and to attract new jobs and businesses.
  Unfortunately, most tribes today lack the basic road systems that 
most of us take for granted. Indian communities continue to lag behind 
the rest of the Nation in quality of life and economic vitality. 
Unemployment rates in Indian country frequently top 50 percent and 
poverty rates often exceed 40 percent.
  The limited availability of housing and jobs on the reservation 
forces people to commute long distances everyday for work, school, 
health care, basic government services, shopping, or even to obtain 
drinking water.
  I'd now like to take a moment to discuss the impact of the Indian 
Reservation Roads Program on just one tribe, the Navajo Nation. I think 
most senators know that Navajo is the largest federally recognized 
Indian tribe. The current membership is about 280,000. By itself, 
Navajo represents about one quarter of the entire Indian Reservation 
Roads program.
  The Navajo Reservation covers 17.1 million acres in the States of 
Arizona, New Mexico, and Utah. It is roughly the size of the State of 
West Virginia. The reservation includes the three satellite communities 
of Alamo, Ramah, and To'hajiilee in New Mexico.
  According to BIA, the Navajo IRR system includes 9,800 miles of 
public roads, or about 20 percent of all IRR roads. However, 78 percent 
of the roads within Navajo are unpaved. Because of the nature of the 
soil and terrain, many of the unpaved roads are impassable after snow 
or rain. Navajo estimates a current backlog of road construction 
projects totaling $2 billion.
  The safety of bridges is also a continuing concern on the Navajo 
reservation. Of the 173 bridges on Navajo, 51 are rated deficient. Of 
the deficient bridges, 27 must be completely replaced and the rest need 
major rehabilitation.
  The Navajo Nation also operates a transit system with 14 buses and 
three vans. The system carries 75,000 passengers each year. The system 
serves both Navajo people as well as the nearby communities of Gallup, 
Farmington, Flagstaff, and Winslow.
  Finally, the few roads that are being built on the Navajo Reservation 
are not being properly maintained. Funding for road maintenance is not 
part of the IRR program. Instead road maintenance is funded each year 
as part of the BIA's annual appropriation bill. Unfortunately, BIA's 
budget lags woefully behind the need for road maintenance. Each year 
the Navajo Region of BIA requests about $32 million to maintain about 
6000 miles of roads, but receives only about $6 million, or about 20 
percent of the funds needed just to maintain the existing roads.
  The bill I am introducing today will begin to address this crushing 
need for road construction and transit programs throughout Indian 
Country. The bill will benefit all tribes, both large and small. I'd 
like to briefly summarize the major provisions of the bill.
  First, the bill increases funding for the Indian Reservation Roads 
program to $2.775 billion for the six years from 2004 to 2009. Under 
TEA-21, the IRR program is currently authorized for $275 million per 
year. This level represents less than 1 percent of annual Federal 
funding for road construction and rehabilitation. However, the 50,000 
miles of the IRR system represent about 5 percent of the nation's 
957,000 miles of Federal-aid-highways. I do believe the substantial 
increase in IRR funding in my bill is fully justified based on the very 
poor condition of so many IRR roads as well as the importance of 
transportation to economic development in Indian country.

[[Page S8929]]

  Second, the bill removes the obligation limitation from the Indian 
Reservation Roads program. This funding limitation was first applied to 
the IRR program in 1998 in TEA-21, and over the six years of TEA-21 the 
limitation will have cut about $31 million per year in much-needed 
funding out of IRR. The IRR was not subject to any obligation 
limitation from 1983 to 1997, and my bill restores the program to the 
status it had before 1998.
  Third, the bill restores the Indian Reservation Bridge Program with 
separate funding of $90 million over six years. TEA-21 had eliminated 
separate funding for the Indian reservation bridge program in 1998. In 
addition, the bill streamlines the bridge program by expanding the 
allowable uses of bridge funding to include planning, design, 
engineering, construction, and inspection of Indian reservation road 
bridges.
  Fourth, the bill increases the current limit for tribal 
transportation planning from 2 percent to 4 percent. These funds will 
be used by tribes to compile important transportation data and to 
forecast their future transportation needs and long-range plans. Many 
of the tribes have indicated they currently don't have funding for 
capacity building, and the additional planning funds in my bill would 
address this need.
  Fifth, TEA-21 established a negotiated rule making for distribution 
of funds based on the relative needs of each tribe for transportation. 
To ensure the distribution is tied to actual needs, my bill requires 
the Secretary of Transportation to verify the existence of all roads 
that are part of the Indian reservation road system.
  Sixth, I propose a new tribal transit program to provide direct 
funding to tribes from the Federal Transit Administration. The new 
program would parallel the existing Indian Reservation Roads program 
funded through FHWA. In general, while States may allocate to tribal 
areas some of their transit funding under the existing formula grant 
programs for transit for elderly and disabled, section 5210, and for 
non-urbanized areas, section 5311, they rarely do so. Because the 
tribes are at a disadvantage in having to compete for funding within 
the states, I believe we need a direct funding program to allow tribes 
to provide better transit services to young people, elderly, and others 
who lack access to private vehicles. The bill sets aside a very modest 
level of funding of $120 million over six years for the new tribal 
transit program.
  Seventh, the bill states the sense of Congress that the BIA should 
have sufficient funding to maintain all roads on the Indian Reservation 
Roads System. Federal funding for road maintenance is provided through 
the BIA's annual appropriation bill. Road maintenance has typically 
been funded at about $25 million per year, about one-fifth of the level 
needed to protect the Federal investment in IRR roads.
  Finally, the bill increases funding for the successful school bus 
route maintenance program for counties in Arizona, New Mexico, and Utah 
that maintain roads used by school buses on the Navajo Reservation. The 
funding over six years is $24 million. Without this funding many of the 
children on the reservation would often not be able to get to school. I 
ask unanimous consent that a letter from Gallup McKinley County Public 
Schools describing this program be printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                            Gallup McKinley County


                                               Public Schools,

                                                       Gallup, NM.
     Hon. Jeff Bingaman,
     U.S. Senate,
     Washington, DC.
       Dear Senator Bingaman: The Gallup McKinley County Schools 
     serve over 14 thousand students, of which 10,040 are bussed 
     daily. Our District's school buses travel 9,235 miles daily. 
     Several miles of these roads are primitive dirt roads with 
     poor or no drainage, no guard rails, and some not maintained. 
     The inability to safely negotiate school buses over these 
     roads during wet, muddy and snowy conditions, greatly 
     restricts our ability to provide adequate services for 
     families living along these particular roadways. Continuing, 
     and expanding, funding for school bus route maintenance is 
     vital to providing safe and efficient transportation for 
     thousands of students throughout our County.
       The School bus route maintenance programs have helped 
     tremendously. Our County Roads Division (McKinley County) has 
     been tremendous in maintaining hundreds of miles of bus route 
     roads. The bus route improvements made in the Bread Springs 
     area have benefited families immensely. Along with graveling, 
     they constructed a bus turnaround. Improvements have also 
     been made and maintained in other areas in our County such as 
     Rock Springs. This bus route was graveled along with a 
     graveled bus turnaround. In Rock Springs, Mexican Springs, 
     Coyote Canyon, and County Road 1 areas, similar improvements 
     were made, allowing us to provide safe and efficient services 
     for hundreds of families.
       The School bus route program is a very important program, 
     one that should continue and expand. The McKinley County 
     Roads Division has worked diligently to provide safe access 
     and passage for our School District's 160 school buses. 
     Without the school bus route program, it will be impossible 
     to maintain safe conditions on these roads. To insure the 
     safety of our school children and families, the program must 
     continue.
       Your help in sponsoring bills in the past which address the 
     unique situations with respect to school bus route roads have 
     been greatly appreciated. Your continuing support of the 
     school bus route program will enable our County Roads 
     Division to improve and maintain hundreds of miles of school 
     bus routes.
       It is through these cooperative efforts that we are able to 
     provide safe and efficient transportation for thousands of 
     school children daily. Thank you for your continued efforts.
           Sincerely,
                                                       Ben Chavez,
                                            GMCS Support Services.

  Mr. BINGAMAN. The IRR system doesn't just serve Indian communities, 
but also visitors, including tourists, recreational, commercial and 
industrial users of roads and transit throughout Indian country. For 
the tribes, transportation is an important contributor to economic 
development, self-determination, and employment for all Indian 
communities. This bill represents a very modest, but important step 
toward providing basic transportation services throughout Indian 
country.
  The proposals in my bill are similar to many of the recommendations 
presented by Chairwoman Robyn Burdette of the Summit Lake Paiute Tribe 
of Nevada at the August 8 hearing of the Subcommittee on 
Transportation, Infrastructure, and Nuclear Safety of the Environment 
and Public Works Committee. In her testimony, Chairwoman Burdette 
specifically cited the need to remove the obligation limitation, 
increase funding for the IRR program, create new programs for transit 
and bridges, and increase funding for road maintenance in the Interior 
appropriations bill. All of these items are addressed in my bill.
  In addition, my bill parallels most of the recommendations in the 
recent White Paper prepared by the National Congress of American 
Indians' TEA-21 Reauthorization Task Force.
  I well appreciate that tribes in different regions of the country may 
have different views and proposals on how best to improve Indian 
transportation programs. I see my bill as just the first step in a 
yearlong process leading up to the reauthorization of the TEA-21. I do 
believe it is important that we start the process as soon as possible, 
and that is my goal in introducing this bill today. I hope that 
Chairman Inouye and Senator Campbell of the Committee on Indian Affairs 
will soon hold hearings on the reauthorization of the Indian 
Reservation Roads Program. I look forward to working with them an the 
other members of the committee on developing a consensus proposal that 
is fair to all tribes.
  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. 2971

       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 ``Tribal Transportation 
     Program Improvement Act of 2002''.

     SEC. 2. INDIAN RESERVATION ROADS.

       (a) Authorization of Appropriations.--Section 1101(a)(8)(A) 
     of the Transportation Equity Act for the 21st Century (112 
     Stat. 112) is amended by striking ``of such title'' and all 
     that follows and inserting ``of that title--
       ``(i) $225,000,000 for fiscal year 1998;
       ``(ii) $275,000,000 for each of fiscal years 1999 through 
     2003;
       ``(iii) $350,000,000 for fiscal year 2004;
       ``(iv) $425,000,000 for fiscal year 2005; and
       ``(v) $500,000,000 for each of fiscal years 2006 through 
     2009.''.

[[Page S8930]]

       (b) Obligation Ceiling.--Section 1102(c)(1) of the 
     Transportation Equity Act for the 21st Century (23 U.S.C. 104 
     note; 112 Stat. 116) is amended--
       (1) by striking ``distribute obligation'' and inserting the 
     following: ``distribute--
       ``(A) obligation'';
       (2) by inserting ``and'' after the semicolon at the end; 
     and
       (3) by adding at the end the following:
       ``(B) for any fiscal year after fiscal year 2003, any 
     amount of obligation authority made available for Indian 
     reservation road bridges under section 202(d)(4), and for 
     Indian reservation roads under section 204, of title 23, 
     United States Code;''.
       (c) Additional Authorization of Contract Authority for 
     States With Indian Reservations.--Section 1214(d)(5)(A) of 
     the Transportation Equity Act for the 21st Century (23 U.S.C. 
     202 note; 112 Stat. 206) is amended by inserting before the 
     period at the end the following: ``, $3,000,000 for each of 
     fiscal years 2004 and 2005, $4,000,000 for each of fiscal 
     years 2006 and 2007, and $5,000,000 for each of fiscal years 
     2008 and 2009''.
       (d) Indian Reservation Road Bridges.--Section 202(d)(4) of 
     title 23, United States Code, is amended--
       (1) in subparagraph (B)--
       (A) by striking ``(B) Reservation.--Of the amounts'' and 
     all that follows through ``to replace,'' and inserting the 
     following:
       ``(B) Funding.--
       ``(i) Reservation of funds.--Notwithstanding any other 
     provision of law, there is authorized to be appropriated from 
     the Highway Trust Fund $15,000,000 for each of fiscal years 
     2004 through 2009 to carry out planning, design, engineering, 
     construction, and inspection of projects to replace,''; and
       (B) by adding at the end the following:
       ``(ii) Availability.--Funds made available to carry out 
     this subparagraph shall be available for obligation in the 
     same manner as if the funds were apportioned under chapter 
     1.''; and
       (2) in subparagraph (D)--
       (A) by striking ``(D) Approval requirement.--'' and 
     inserting the following:
       ``(D) Approval and need requirements.--''; and
       (B) by striking ``only on approval of the plans, 
     specifications, and estimates by the Secretary.'' and 
     inserting ``only--
       ``(i) on approval by the Secretary of plans, 
     specifications, and estimates relating to the projects; and
       ``(ii) in amounts directly proportional to the actual need 
     of each Indian reservation, as determined by the Secretary 
     based on the number of deficient bridges on each reservation 
     and the projected cost of rehabilitation of those bridges.''.
       (e) Fair and Equitable Distribution.--Section 202(d) of 
     title 23, United States Code, is amended by adding at the end 
     the following:
       ``(5) Fair and equitable distribution.--To ensure that the 
     distribution of funds to an Indian tribe under this 
     subsection is fair, equitable, and based on valid 
     transportation needs of the Indian tribe, the Secretary 
     shall--
       ``(A) verify the existence, as of the date of the 
     distribution, of all roads that are part of the Indian 
     reservation road system; and
       ``(B) distribute funds based only on those roads.''.
       (f) Indian Reservation Roads Planning.--Section 204(j) of 
     title 23, United States Code, is amended in the first 
     sentence by striking ``2 percent'' and inserting ``4 
     percent''.

     SEC. 3. INDIAN RESERVATION RURAL TRANSIT PROGRAM.

       Section 5311 of title 49, United States Code, is amended by 
     adding at the end the following:
       ``(k) Indian Reservation Rural Transit Program.--
       ``(1) Definition of indian tribe.--In this subsection, the 
     term `Indian tribe' has the meaning given the term in section 
     4 of the Indian Self-Determination and Education Assistance 
     Act (25 U.S.C. 450b).
       ``(2) Program.--
       ``(A) In general.--The Secretary of Transportation shall 
     establish and carry out a program to provide competitive 
     grants to Indian tribes to establish rural transit programs 
     on reservations or other land under the jurisdiction of the 
     Indian tribes.
       ``(B) Amount of grants.--The amount of a grant provided to 
     an Indian tribe under subparagraph (A) shall be based on the 
     need of the Indian tribe, as determined by the Secretary of 
     Transportation.
       ``(3) Funding.--Notwithstanding any other provision of law, 
     for each fiscal year, of the amount made available to carry 
     out this section under section 5338 for the fiscal year, the 
     Secretary of Transportation shall use $20,000,000 to carry 
     out this subsection.''.

     SEC. 4. SENSE OF CONGRESS REGARDING INDIAN RESERVATION ROADS.

       (a) Findings.--Congress finds that--
       (1) the maintenance of roads on Indian reservations is a 
     responsibility of the Bureau of Indian Affairs;
       (2) amounts made available by the Federal Government as of 
     the date of enactment of this Act for maintenance of roads on 
     Indian reservations under section 204(c) of title 23, United 
     States Code, comprise only 30 percent of the annual amount of 
     funding needed for maintenance of roads on Indian 
     reservations in the United States; and
       (3) any amounts made available for construction of roads on 
     Indian reservations will be wasted if those roads are not 
     properly maintained.
       (b) Sense of Congress.--It is the sense of Congress that 
     Congress should annually provide to the Bureau of Indian 
     Affairs such funding as is necessary to carry out all 
     maintenance of roads on Indian reservations in the United 
     States.
                                 ______
                                 
      By Mrs. SNOWE (for herself and Ms. Collins):
  S. 2972. A bill to amend the Magnuson-Stevens Fishery Conservation 
and Management Act to provide for a cooperative research and management 
program, and for other purposes; to the Committee on Commerce, Science, 
and Transportation.
  Ms. SNOWE. Madam President, I rise today to introduce a bill which 
would help restore credibility in the National Oceanic and Atmospheric 
Administration, NOAA, and the National Marine Fisheries Service's, 
NMFS, data collection programs and improve their cooperative research 
and management programs.
  I am introducing this bill today because of recent events in New 
England in which a commercial fisherman noticed that the trawl warps on 
the NOAA research vessel, Albatross IV, were improperly marked. As a 
result of this mis-calibration, the groundfish stock assessment data 
gathered since February 2000 may be inaccurate and its usability for 
management purposes is questionable. This fish-counting error could not 
have come at a worse time for NMFS, which is under a federal judge's 
order to impose some of New England's strictest fishing restrictions by 
next August.
  This revelation and the possibility of other discrepancies is 
severely eroding the credibility of NMFS's stock assessments. These 
stock assessments form the foundation for all of our fisheries 
regulations and determine how many fish our fishermen can harvest. When 
these stock assessments are flawed and lack credibility, the entire 
process is adversely affected. We must act now to restore this 
credibility in the process and ensure that our stock assessments are as 
accurate as possible.
  My bill would require the National Research Council to conduct an 
independent review of NMFS' data collection techniques; its protocols 
through which stock assessment equipment is calibrated, operated, 
inspected, and maintained; the frequency and financial cost of these 
quality control checks; how the accuracy and validity of data collected 
with sampling equipment is verified; and how measurement error is 
accounted for in stock assessment modeling and analysis based on these 
data. The National Research Council completed a report on the Northeast 
Fishery stock assessment process in 1998, so this new study would build 
upon the previous one. This assessment will provide us with an 
independent baseline to determine the extent of NMFS' data collection 
discrepancies.
  Additionally, my bill will require NMFS to implement a national 
cooperative research program to facilitate industry involvement in data 
collection and stock assessments. I have also included a section that 
authorizes $3 million to enable cooperative comparative trawl research 
between the NMFS and fishing industry participants in the Northeast 
multi-species groundfish fishery. The fishing industry has been calling 
for a commercial vessel to trawl alongside the NOAA's vessels and this 
provision would require it. Nothing will help restore NMFS's 
credibility more than having commercial fishermen verifying its data.
  The third section of this bill would address a flexibility concern 
for fisheries management. Earlier this year NMFS came out with new 
biological targets for groundfish. In other words, NMFS increased how 
many fish there have to be in order for the fishery to be considered 
recovered. The law is not clear on whether or not a change in the 
biological targets means the time-line for recovery changes as well. 
NMFS has interpreted the law to mean that despite a change in the 
biological targets, the fish must be recovered in the same amount of 
time. Accordingly, I have drafted language which allows, but does not 
require, the Secretary to adjust the time allowed for recovery if the 
biological targets have changed in the middle of the rebuilding plan. 
This provision would clarify existing law and make Congress' intent 
clearer.
  As Ranking Member of the Subcommittee on Oceans, Atmosphere, and 
Fisheries, I am dedicated to ensuring that our stock assessments are as 
accurate as possible and the process we use

[[Page S8931]]

is transparent to all the stakeholders. This bill will allow us to take 
a critical step forward in ensuring that we can restore credibility and 
faith in this important process. I urge my colleagues to join me and 
support this bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.

                                S. 2972

       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 ``Fisheries Research 
     Improvement Act''.

     SEC. 2. INDEPENDENT PEER REVIEW OF DATA COLLECTION 
                   PROCEDURES.

       The Magnuson-Stevens Fishery Conservation and Management 
     Act is amended by adding at the end of Title IV the 
     following:

     ``SEC. 408. PEER REVIEW.

       ``The National Academy of Sciences shall review and 
     recommend measures for improving National Marine Fisheries 
     Service's procedures for ensuring data quality in the data 
     collection phase of the stock assessment program. In this 
     review, they shall address the quality control protocols 
     through which stock assessment equipment is calibrated, 
     operated, inspected, and maintained; the frequency and 
     financial cost of these quality control checks; how the 
     accuracy and validity of data collected with sampling 
     equipment is verified; and how measurement error is accounted 
     for in stock assessment modeling and analysis based on these 
     data. This review shall apply to all activities that affect 
     stock assessment data quality, whether conducted by the 
     National Marine Fisheries Service or by National Marine 
     Fisheries Service contractors.''.

     SEC. 3. COOPERATIVE RESEARCH AND MANAGEMENT.

       The Magnuson-Stevens Fishery Conservation and Management 
     Act is amended by adding at the end the following:

             ``TITLE V--COOPERATIVE RESEARCH AND MANAGEMENT

     ``SEC. 501. ESTABLISHMENT OF PROGRAM.

       ``(a) In General.--The Secretary shall establish a national 
     cooperative research and management program to be 
     administered by the National Marine Fisheries Service, based 
     on recommendations by the Councils. The program shall consist 
     of cooperative research and management activities between 
     fishing industry participants, the affected States, and the 
     Service.
       ``(b) Research Awards.--Each research project under this 
     program shall be awarded on a standard competitive basis 
     established by the Service, in consultation with the 
     Councils. Each Council shall establish a research steering 
     committee to carry out this subsection.
       ``(c) Guidelines.--The Secretary, in consultation with the 
     appropriate Council and the fishing industry, shall create 
     guidelines so that participants in this program are not 
     penalized for loss of catch history or unexpended days-at-sea 
     as part of a limited entry system.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to the National Marine 
     Fisheries Service, in addition to amounts otherwise 
     authorized by this Act, the following amounts, to remain 
     available until expended, for the conduct of this program:
       ``(1) $25,000,000 for fiscal year 2003.
       ``(2) $30,000,000 for fiscal year 2004.
       ``(3) $35,000,000 for fiscal year 2005.
       ``(4) $40,000,000 for fiscal year 2006.
       ``(5) $45,000,000 for fiscal year 2007.
       ``(e) New England Trawl Survey.--Of the funds authorized in 
     subsection (d) $3,000,000 shall be authorized for the purpose 
     of cooperative comparative trawl research between the 
     National Marine Fisheries Service and fishing industry 
     participants for the Northeast multispecies groundfish 
     fishery, which the Secretary shall design and administer with 
     input from fishing industry participants and other interested 
     stakeholders.''.

     SEC. 4. REGULATORY FLEXIBILITY.

       Section 304(e)(4)(A)(ii) of the Magnuson-Stevens Fishery 
     Conservation and Management Act (16 U.S.C. 1854(e)(4)(A)(ii)) 
     is amended to read as follows:
       ``(ii) not exceed 10 years, except in the case where a 
     rebuilding target is changed during the rebuilding period, 
     the Council or the Secretary may extend the time period for 
     the rebuilding to accommodate the new target;''.
                                 ______
                                 
      By Mr. DOMENICI (for himself and Mr. Bingaman):
  S. 2973. A bill to designate the Federal building located at Fifth 
and Richardson Avenues in Roswell, New Mexico, as the ``Joe Skeen 
Federal Building''; to the Committee on Environment and Public Works.
  Mr. DOMENICI. Madam President, I rise today to introduce a bill to 
rename the Federal courthouse in Roswell, New Mexico for my longtime 
friend and ally, Representative Joe Skeen.
  I have had the highest honor of serving the State of New Mexico with 
this amazing man for more than 20 years. Joe was first elected to the 
House of Representatives in 1980 as a write-in candidate. He is only 
the third man in the history of this country to achieve this feat.
  As great an accomplishment as this was, history will show that it was 
among the least of his great achievements. As I'm sure you can imagine, 
the litany of successes that Joe has had in his work for New Mexico is 
much too long to go into here today. Suffice it to say that New Mexico 
is infinitely better for having had Joe Skeen representing us in 
Congress; this country is better for having had Joe participate in 
making decisions that affect the entire nation.
  Joe will be the first to tell you that he has not done it on his own, 
however. He has had a partner in his great adventure who has walked 
beside him every step of the way. Mary, his wife of 57 years, has been 
a calming influence in the storm that is the life of a Congressman. She 
has made it possible for Joe to continue to be a ranching 
Representative, running the family ranch while Joe has served in 
Washington.
  Joe has decided that it is time to return to that ranch to spend time 
with the family and the land that he loves so much. I know that 
Washington will go on without the Skeens but there is no way that it 
will be as a good a place.
  It is only a small token of the appreciation New Mexico and this 
country have for his many years of service, but I believe that renaming 
the Federal Courthouse in Roswell, New Mexico is a fitting tribute to 
this exceptional public servant.
  I ask unanimous consent that the text of the bill be printed in the 
Record.

                                S. 2973

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

     SECTION 1. DESIGNATION.

       The Federal building located at Fifth and Richardson 
     Avenues in Roswell, New Mexico, shall be known and designated 
     as the ``Joe Skeen Federal Building''.

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the Federal building 
     referred to in section 1 shall be deemed to be a reference to 
     the Joe Skeen Federal Building.

     SEC. 3. EFFECTIVE DATE.

       This Act shall take effect on January 1, 2003.
                                 ______
                                 
      By Mr. BOND (for himself, Mr. Dodd, Mr. Frist, and Mr. Kennedy):
  S. 2980. A bill to revise and extend the Birth Defects Prevention Act 
of 1998; to the Committee on Health, Education, Labor, and Pensions.
  Mr. BOND. Madam President, I rise today to introduce the Birth 
Defects and Developmental Disabilities Prevention Act of 2002. It is a 
pleasure to work, once again, on this important issue with Senators 
Dodd, Kennedy and Frist.
  My interest in birth defects prevention began while I was Governor. 
As Governor I had secured dollars to fund the neonate care units at our 
hospitals in Missouri. These remarkable institutions and the dedicated 
men and women who serve there do a tremendous job of saving low birth 
weight babies and babies with severe birth defects.
  As I visited those hospitals and held those tiny babies, the doctors 
and nurses who staffed these units asked me, ``Why don't we do 
something to reduce the incidents of birth defects and the problems 
that bring the tiniest of infants to these very high-tech, specialized 
care units.''
  Since I became a Senator I have been working with colleagues on both 
sides of the aisle and with the March of Dimes to deal with this 
serious and compelling health problem facing America. Many people are 
not aware that birth defects affect over 3 percent of all births in 
America, and they are the leading cause of infant death.
  This year alone, an estimated 150,000 babies will be born with a 
birth defect. Among the babies who survive, birth defects often result 
in lifelong disability. Medical care, special education, and many other 
services are often required into adulthood, costing families thousands 
of dollars each year.
  In 1992, due to a terrible tradegy in Texas when at least 30 infants 
were born without or with little brain tissue over a short period of 
time, I introduced the Birth Defects Prevention Act.
  Because at the time Texas did not have a birth defects surveillance 
system, and because our country did not have a comprehensive birth 
defects prevention and surveillance strategy, the severity of the 
problem was not

[[Page S8932]]

recognized until the incidence of birth defects was so high that it was 
difficult to miss.
  In 1998, we passed the Birth Defects Prevention Act, which created a 
federal birth defects prevention and surveillance strategy. That was 
followed by the Children's Health Act of 2000, which established the 
National Center on Birth Defects and Developmental Disabilities at CDC. 
With these two important pieces of legislation Congress for the first 
time recognized that birth defect and developmental disabilities are 
major threats to children's health.
  As a result, CDC, through eight regional Centers for Birth Defects 
Research and Prevention are collaborating on the largest study on the 
causes of birth defects ever undertaken, the National Birth Defects 
Prevention Study. CDC is also assisting 28 States by providing 3-year 
grants to improve their surveillance systems. We have come a long way 
in the past 5 years toward preventing certain birth defects, but we 
face many challenges ahead.
  There is still much work to be done to improve the health of all 
Americans by preventing birth defects and developmental disabilities in 
children, promoting optimal child development and ensuring health and 
wellness among child and adults living with disabilities.
  Today, with the introduction of this bill we have the opportunity to 
renew our commitment to birth defects prevention and to improve the 
quality of life of those living with disabilities. I look forward to 
working with my colleagues to ensure and enhance the well-being of our 
Nation's children.
  Mr. FRIST. Madam President, I am pleased to join Senators Bond and 
Dodd in re-introducing the ``Birth Defects and Developmental 
Disabilities Prevention Act of 2002''. This bill reauthorizes the 
National Center on Birth Defects and Developmental Disabilities (NCBDD) 
at the Centers for Disease Control and Prevention to promote optimal 
fetal, infant, and child development and prevent birth defects and 
childhood developmental disabilities.
  Birth defects are the leading cause of infant mortality in the United 
States, accounting for more than 20% of all infant deaths. Of the 
150,000 babies born with a birth defect in the United States each year, 
8000 will die during their first year of life. In addition, birth 
defects are the fifth-leading cause of years of potential life lost and 
contribute substantially to childhood morbidity and long-term 
disability.
  Congress passed the ``Birth Defects Prevention Act in 1998''--a bill 
to assist States in developing, implementing, or expanding community-
based birth defects tracking systems, programs to prevent birth 
defects, and activities to improve access to health services for 
children with birth defects. The authorization for this important 
legislation for this important legislation expires at the end of this 
year, and the legislation we are introducing today will strengthen 
those important programs.
  In order to educate health professionals and the general public, this 
legislation requires NCBDD to provide information on the incidence and 
prevalence of individuals living with birth defects and disabilities, 
any health disparities, experienced by such individuals, and 
recommendations for improving the health and wellness and quality of 
life of such individuals. The Clearinghouse will also contain a summary 
of recommendations from all birth defects research conferences 
sponsored by the agency including conferences related to spina bifida.
  This legislation also clarifies advisory committees, already in 
existence, that have expertise in birth defects, developmental 
disabilities, and disabilities and health will be transferred to the 
National Center for Birth Defects.
  This piece of legislation also supports a National Spina Bifida 
Program to prevent and reduce suffering from the nation's most common 
permanently disabiling birth defect.
  I ask that this piece of important legislation be reauthorized. I 
want to thank my colleagues, Senators Bond, Dodd, and others, for the 
introduction of this initial piece of legislation in 1998 and for their 
continued initiatives on birth defects and developmental disabilities.
                                 ______
                                 
      By Mr. VOINOVICH:
  S. 2981. A bill to exclude certain wire rods from the scope of any 
anti-dumping or countervailing duty order issued as a result of certain 
investigations relating to carbon and certain alloy steel rods; to the 
Committee on Finance.
  Mr. VOINOVICH. 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. 2981

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

     SECTION 1. EXCLUSION OF CERTAIN WIRE RODS FROM ANTIDUMPING 
                   AND COUNTERVAILING DUTY ORDERS.

       (a) In General.--Notwithstanding any other provision of 
     law, any antidumping or countervailing duty order that is 
     issued as a result of antidumping investigations A-351-832, 
     A-122-840, A-428-832, A-560-815, A-201-830, A-841-805, A-274-
     804, and A-823-812, or countervailing duty investigations C-
     351-833, C-122-841, C-428-833, C-274-805, and C-489-809, 
     relating to carbon and certain alloy steel rods, shall not 
     include wire rods that meet the American Welding Society 
     ER70S-6 classification and are used to produce Mig Wire.
       (b) Effective Date.--The amendment made by subsection (a) 
     applies with respect to goods entered, or withdrawn from 
     warehouse for consumption, on or after the 15th day after the 
     date of enactment of this Act.
                                 ______
                                 
      By Mr. CORZINE (for himself, Mr. Fitztgerald, Mr. Sarbanes, and 
        Mr. Akaka):
  S. 2982. A bill to establish a grant program to enhance the financial 
and retirement literacy of mid-life and older Americans and to reduce 
financial abuse and fraud among such Americans, and for other purposes; 
to the Committee on Health, Education, Labor, and Pensions.
  Mr. CORZINE. Mr. President, I rise today with my colleagues, Senators 
Fitzgerald, Sarbanes, and Akaka to introduce the Education for 
Retirement Security Act of 2002. This bill will provide access to badly 
needed financial and retirement education for millions of mid-life and 
older Americans whose retirement security is at stake.
  Improving financial literacy has been a top priority for me in 
Congress. I believe it is a critical and complex task for Americans of 
all ages, but it is especially crucial for Americans as they approach 
retirement. In fact, low levels of savings and high levels of personal 
and real estate debt are serious problems for many households nearing 
retirement. Although today's older Americans are generally thought to 
be doing well, nearly one-out-of five, 18 percent, were living below 
125 percent of the poverty line in 1995, which was a year of tremendous 
economic prosperity in our nation. And, only 53 percent of working 
Americans have any form of pension coverage. In addition, financial 
exploitation is the largest single category of abuse against older 
individuals, and this population comprises more than one-half of all 
telemarketing victims in the United States.
  While education alone cannot solve our Nation's retirement woes, 
financial education is vital to enabling individuals to avoid scams and 
bad investment, mortgage, and pension decisions, and to ensuring that 
they have access to the tools they need to make sound financial 
decisions and prepare appropriately for a secure future. Indeed, the 
more limited time frame that mid-life and older Americans have in which 
to assess the realities of their individual circumstances, recover from 
bad economic choices, and to benefit from more informed financial 
practices make this education all the more critical. Financial literacy 
is also particularly important for older women, who are more likely to 
live in poverty and be dependent upon Social Security.
  The Education for Retirement Security Act would create a competitive 
grant program that would provide resources to State and area agencies 
on aging and nonprofit community based organizations to provide 
financial education programs to mid-life and older Americans. The goal 
of these programs is to enhance these individuals' financial and 
retirement knowledge and reduce their vulnerability to financial abuse 
and fraud, including telemarketing, mortgage, and pension fraud.
  My legislation also authorizes the creation of a national technical 
assistance program that would designate at least one national nonprofit 
organization that has substantial experience in

[[Page S8933]]

the field of financial education to provide training and make available 
instructional materials and information that promotes financial 
education.
  Over the next thirty years, the percentage of Americans aged 65 and 
older is expected to double, from 35 million to nearly 75 million. 
Ensuring that these individuals are better prepared for retirement and 
are more informed about the economic decisions they face during 
retirement will have an important impact on the long term economic and 
social well-being of our nation.
  I hope that as the Senate moves to address pension reform, my 
colleagues will work to address the issues outlined in this 
legislation. The recent rash of corporate and accounting scandals and 
the declining stock market have jeopardized the retirement savings of 
millions of Americans, making the need for financial literacy even more 
clear.
  In closing, I would like to acknowledge the expertise and assistance 
that AARP, the Older Women's League, OWL, and the Women's Institute for 
a Secure Economic Retirement, WISER, offered to me in drafting this 
legislation.
  I also ask unanimous consent that the text of my legislation be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2982

       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 ``Education for Retirement 
     Security Act of 2002''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Improving financial literacy is a critical and complex 
     task for Americans of all ages.
       (2) Low levels of savings and high levels of personal and 
     real estate debt are serious problems for many households 
     nearing retirement.
       (3) Only 53 percent of working Americans have any form of 
     pension coverage. Three out of four women aged 65 or over 
     receive no income from employer-provided pensions.
       (4) The more limited timeframe that mid-life and older 
     individuals and families have to assess the realities of 
     their individual circumstances, to recover from counter-
     productive choices and decisionmaking processes, and to 
     benefit from more informed financial practices, has immediate 
     impact and near term consequences for Americans nearing or of 
     retirement age.
       (5) Research indicates that there are now 4 basic sources 
     of retirement income security. Those sources are social 
     security benefits, pensions and savings, healthcare insurance 
     coverage, and, for an increasing number of older individuals, 
     necessary earnings from working during one's ``retirement'' 
     years.
       (6) The $5,000,000,000,000 loss in stock market equity 
     values since 2000 has had a significantly negative effect on 
     mid-life and older individuals and on their pension plans and 
     retirement accounts, affecting both individuals with plans to 
     retire and those who are already in retirement.
       (7) Although today's older individuals are generally 
     thought to be doing well, nearly \1/5\ (18 percent) of such 
     individuals were living below 125 percent of the poverty line 
     during a year of national prosperity, 1995.
       (8) Over the next 30 years, the number of older individuals 
     in the United States is expected to double, from 35,000,000 
     to nearly 75,000,000, and long-term care costs are expected 
     to skyrocket.
       (9) Financial exploitation is the largest single category 
     of abuse against older individuals and this population 
     comprises more than \1/2\ of all telemarketing victims in the 
     United States.
       (10) The Federal Trade Commission (FTC) Identity Theft Data 
     Clearinghouse has reported that incidents of identity theft 
     targeting individuals over the age of 60 increased from 1,821 
     victims in 2000 to 5,802 victims in 2001, a threefold 
     increase.

     SEC. 3. GRANT PROGRAM TO ENHANCE FINANCIAL AND RETIREMENT 
                   LITERACY AND REDUCE FINANCIAL ABUSE AND FRAUD 
                   AMONG MID-LIFE AND OLDER AMERICANS.

       (a) Authority.--The Secretary is authorized to award grants 
     to eligible entities to provide financial education programs 
     to mid-life and older individuals who reside in local 
     communities in order to--
       (1) enhance financial and retirement knowledge among such 
     individuals; and
       (2) reduce financial abuse and fraud, including 
     telemarketing, mortgage, and pension fraud, among such 
     individuals.
       (b) Eligible Entities.--An entity is eligible to receive a 
     grant under this section if such entity is--
       (1) a State agency or area agency on aging; or
       (2) a nonprofit organization with a proven record of 
     providing--
       (A) services to mid-life and older individuals;
       (B) consumer awareness programs; or
       (C) supportive services to low-income families.
       (c) Application.--An eligible entity desiring a grant under 
     this section shall submit an application to the Secretary in 
     such form and containing such information as the Secretary 
     may require, including a plan for continuing the programs 
     provided with grant funds under this section after the grant 
     expires.
       (d) Limitation on Administrative Costs.--A recipient of a 
     grant under this section may not use more than 4 percent of 
     the total amount of the grant in each fiscal year for the 
     administrative costs of carrying out the programs provided 
     with grant funds under this section.
       (e) Evaluation and Report.--
       (1) Establishment of performance measures.--The Secretary 
     shall develop measures to evaluate the programs provided with 
     grant funds under this section.
       (2) Evaluation according to performance measures.--Applying 
     the performance measures developed under paragraph (1), the 
     Secretary shall evaluate the programs provided with grant 
     funds under this section in order to--
       (A) judge the performance and effectiveness of such 
     programs;
       (B) identify which programs represent the best practices of 
     entities developing such programs for mid-life and older 
     individuals; and
       (C) identify which programs may be replicated.
       (3) Annual reports.--For each fiscal year in which a grant 
     is awarded under this section, the Secretary shall submit a 
     report to Congress containing a description of the status of 
     the grant program under this section, a description of the 
     programs provided with grant funds under this section, and 
     the results of the evaluation of such programs under 
     paragraph (2).

     SEC. 4. NATIONAL TRAINING AND TECHNICAL ASSISTANCE PROGRAM.

       (a) Authority.--The Secretary is authorized to award a 
     grant to 1 or more eligible entities to--
       (1) create and make available instructional materials and 
     information that promote financial education; and
       (2) provide training and other related assistance regarding 
     the establishment of financial education programs to eligible 
     entities awarded a grant under section 3.
       (b) Eligible Entities.--An entity is eligible to receive a 
     grant under this section if such entity is a national 
     nonprofit organization with substantial experience in the 
     field of financial education.
       (c) Application.--An eligible entity desiring a grant under 
     this section shall submit an application to the Secretary in 
     such form and containing such information as the Secretary 
     may require.
       (d) Basis and Term.--The Secretary shall award a grant 
     under this section on a competitive, merit basis for a term 
     of 5 years.

     SEC. 5. DEFINITIONS.

       In this Act:
       (1) Financial education.--The term ``financial education'' 
     means education that promotes an understanding of consumer, 
     economic, and personal finance concepts, including saving for 
     retirement, long-term care, and estate planning and education 
     on predatory lending and financial abuse schemes.
       (2) Mid-life individual.--The term ``mid-life individual'' 
     means an individual aged 45 to 64 years.
       (3) Older individual.--The term ``older individual'' means 
     an individual aged 65 or older.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization.--There are authorized to be appropriated 
     to carry out this Act, $100,000,000 for each of the fiscal 
     years 2003 through 2007.
       (b) Limitation on Funds for Evaluation and Report.--The 
     Secretary may not use more than $200,000 of the amounts 
     appropriated under subsection (a) for each fiscal year to 
     carry out section 3(e).
       (c) Limitation on Funds for Training and Technical 
     Assistance.--The Secretary may not use less than 5 percent or 
     more than 10 percent of amounts appropriated under subsection 
     (a) for each fiscal year to carry out section 4.

                          ____________________