[Congressional Record Volume 148, Number 147 (Thursday, November 14, 2002)]
[House]
[Pages H8925-H9007]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 0240
DISPOSING OF VARIOUS LEGISLATIVE MEASURES
Mr. ARMEY. Mr. Speaker, in accordance with the Boyle-Turton
precedent, I ask unanimous consent that the House.
(1) Be considered to have discharged from the committee and passed
H.R. 5334, H.R. 5436, H.R. 5738, S. 1010, H.R. 5716, H.R. 5499, S.
2239, H.R. 5280, H.R. 5586, H.R. 5609, H.R. 628, H.R. 629, H.R. 3775,
H.R. 5495, H.R. 5604, H.R. 5611, H.R. 5728, and H.R. 5436;
(2) Be considered to have taken from the Speaker's table and passed
S. 2712, S. 3044, and S. 3156;
(3) Be considered to have discharged from committee and agreed to H.
Res. 604, H. Con. Res. 499, H. Res. 582, H. Res. 599, and H. Res. 612;
(4) Be considered to have discharged from committee, amended, and
passed S. 1843, in the form placed at the desk;
(5) Be considered to have passed H.R. 5504 as amended by the
committee amendment;
(6) Be considered to have passed H.R. 3429 and H.R. 2458 as amended
by the committee amendment as further amended by the form placed at the
desk;
(7) Be considered to have discharged from committee, amended, and
agreed to H. Con. Res. 466 in the form placed at the desk;
(8) Be considered to have taken from the Speaker's table and
concurred in the respective Senate amendments to H.R. 4664, H.R. 2621,
H.R. 3609, H.R. 5469, and H.R. 3833;
(9) Be considered to have taken from the Speaker's table and amended
S. 2237 in the form placed at the desk; and
(10) That the committees being discharged be printed in the Record,
the texts of each measure and any amendments thereto be considered as
read and printed in the Record, and that motions to reconsider each of
these actions be laid upon the table.
The SPEAKER pro tempore (Mr. Simpson). The Chair will entertain this
combined request under the Speaker's guidelines as recorded on page 712
of the House Rules and Manual with assurances that it has been cleared
by the bipartisan floor and all committee leadership.
The Clerk will report the titles of the various bills and
resolutions.
The Clerk read as follows:
Discharged From the Committee on the Judiciary and Passed
H.R. 5334, to ensure that a public safety officer who suffers a fatal
heart attack or stroke while on duty shall be presumed to have died in
the line of duty for purposes of public safety officer survivor
benefits.
H.R. 5334
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 ``Hometown Heroes Survivors
Benefits Act of 2002''.
SEC. 2. FATAL HEART ATTACK OR STROKE ON DUTY PRESUMED TO BE
DEATH IN LINE OF DUTY FOR PURPOSES OF PUBLIC
SAFETY OFFICER SURVIVOR BENEFITS.
Section 1201 of the Omibus Crime Control and Safe Streets
Act of 1968 (42 U.S.C. 3796) is amended by adding at the end
the following new subsection:
``(k) For purposes of this section, if a public safety
officer dies as the direct and proximate result of a heart
attack or stroke suffered while on duty or within 24 hours
after participating in a training exercise or responding to
an emergency situation, that officer shall be presumed to
have died as the direct and proximate result of a personal
injury sustained in the line of duty.''.
SEC. 3. APPLICABILITY.
Subsection (k) of section 1201 of such Act (as added by
section 2) shall apply to deaths occurring on or after
January 1, 2002.
Discharged From the Committee on Energy and Commerce and Passed
H.R. 5436, to extend the deadline for commencement of construction of
a hydroelectric project in the State of Oregon.
[[Page H8926]]
H.R. 5436
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY
COMMISSION PROJECT.
(a) In General.--Notwithstanding the time period specified
in section 13 of the Federal Power Act (16 U.S.C. 806) that
would otherwise apply to the Federal Energy Regulatory
Commission project number 11509, the Commission shall, at the
request of the licensee for the project, and after reasonable
notice, extend the time period during which the licensee is
required to commence the construction of the project for 3
consecutive 2-year periods.
(b) Effective Date.--Subsection (a) takes effect on the
date of the expiration of the extension issued by the
Commission under section 13 of the Federal Power Act (16
U.S.C. 806) for Federal Energy Regulatory Commission project
number 11509.
(c) Reinstatement of Expired License.--If the period
required for commencement of construction of the project
described in subsection (a) has expired prior to the date of
the enactment of this act, the commission shall reinstate the
license effective as of the date of its expiration and the
first extension authorized under subsection (a) shall take
effect on the date of such expiration
Discharged From the Committee on Energy and Commerce and Passed
H.R. 5738, to amend the Public Health Service Act with respect to
special diabetes programs for Type 1 diabetes and Indians.
H.R. 5738
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SPECIAL DIABETES PROGRAMS FOR TYPE I DIABETES AND
INDIANS.
(a) Special Diabetes Programs for Type I Diabetes.--Section
330B(b)(2) of the Public Health Service Act (42 U.S.C. 254c-
2(b)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) $150,000,000 for each of fiscal years 2004 through
2008.''.
(b) Special Diabetes Programs for Indians.--Section
330C(c)(2) of the Public Health Service Act (42 U.S.C. 254c-
3(c)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) $150,000,000 for each of fiscal years 2004 through
2008.''.
(c) Extension of Final Report on Grant Programs.--Section
4923(b)(2) of the Balanced Budget Act of 1997 (Public Law
105-33; 111 Stat. 251), as amended by section 931(c) of BIPA
(114 Stat. 2763A-585), is amended by striking ``2003'' and
inserting ``2007''.
Discharged From the Committee on Energy and Commerce and Passed
S. 1010, to extend the deadline for commencement of construction of a
hydroelectric project in the State of North Carolina.
S. 1010
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY
COMMISSION PROJECT.
(a) In General.--Notwithstanding the time period specified
in section 13 of the Federal Power Act (16 U.S.C. 806) that
would otherwise apply to the Federal Energy Regulatory
Commission project number 11437, the Commission may, at the
request of the licensee for the project, and after reasonable
notice, in accordance with the requirements of that section
and the Commission's procedures under that section, extend
the time period during which the licensee is required to
commence the construction of the project for 3 consecutive 2-
year periods.
(b) Effective Date.--Subsection (a) takes effect on the
date of the expiration of the extension issued by the
Commission before the date of the enactment of this Act under
section 13 of the Federal Power Act (16 U.S.C. 806).
Discharged From the Committee on Energy and Commerce and From the
Committee on Education and the Workforce and Passed
H.R. 5716, to amend the Employee Retirement Income Security Act of
1974 and the Public Health Service Act to extend the mental health
benefits parity provisions for an additional year.
H.R. 5716
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 ``Mental Health Parity
Reauthorization Act of 2002''.
SEC. 2. EXTENSION OF MENTAL HEALTH PROVISIONS.
(a) ERISA.--Section 712(f) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1185a(f)) is amended
by striking ``December 31, 2002'' and inserting ``December
31, 2003''.
(b) PHSA.--Section 2705(f) of the Public Health Service Act
(42 U.S.C. 300gg-5(f)) is amended by striking ``December 31,
2002'' and inserting ``December 31, 2003''.
Mr. BOEHNER. Mr. Speaker, in 1996, Congress enacted the Mental Health
Parity Act to prevent employers and health insurers from establishing
annual and lifetime limits on mental health insurance coverage unless
similar limits were also established for medical and surgical health
coverage. These mental health parity benefits offered through the
Employee Retirement Income Security Act (ERISA) were set to expire on
December 31, 2002.
Today the House will take an important step to extend mental health
parity benefits for another year. Over the past six years, the parity
law has made significant improvements in mental health coverage. It did
so by striking a good balance--providing important mental health
benefits to patients without placing unworkable mandates on employers.
I committed last year to give the issue of mental health parity
serious and substantial consideration at the Committee on Education and
the Workforce. As part of that commitment, the Subcommittee on
Employer-Employee Relations held the first House hearing on the issue
of mental health parity on March 13, 2002. At this hearing, the
Subcommittee heard testimony from both mental health advocates and
employers concerning current federal mental health parity law, state
laws that impact the issue, and the implications of expanding mental
health parity for other employers and employees.
The Committee will continue to examine the issue of mental health
parity in a balanced manner that doesn't jeopardize workers' existing
health care benefits of discourage employers from voluntarily providing
quality benefits to their employees. It is important to remember that
the number of uninsured Americans increased to 41.2 million last year,
and health insurance costs are expected to rise by 15 percent this
year. Congress should carefully consider the implications of any new or
expanded federal regulations before enacting proposals that increase
health care costs and force more Americans to lose their health
insurance.
However, today's vote on H.R. 5716 is a vote to preserve the mental
health benefits that workers currently enjoy. I hope you will join me
in support of this bill.
Discharged From the Committee on Financial Services and Passed
H.R. 5499, to reauthorize the HOPE VI program for revitalization of
severely distressed public housing, and for other purposes.
H.R. 5499
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 ``HOPE VI Program
Reauthorization Act of 2002''.
SEC. 2. SELECTION CRITERIA.
Section 24(e)(2) of the United States Housing Act of 1937
(42 U.S.C. 1437v(e)(2)) is amended--
(1) by striking the matter preceding subparagraph (A) and
inserting the following:
``(2) Selection criteria.--The Secretary shall establish
criteria for the award of grants under this section and shall
include among the factors--'';
(2) in subparagraph (B), by striking ``large-scale'';
(3) in subparagraph (D), by inserting ``and ongoing
implementation'' after ``development'';
(4) in subparagraph (H), by striking ``and'' at the end;
(5) by redesignating subparagraph (I) as subparagraph (M);
and
(6) by inserting after subparagraph (H) the following new
subparagraphs:
``(I) the extent to which the applicant can commence and
complete the revitalization plan expeditiously;
``(J) the extent to which the plan minimizes temporary or
permanent displacement of current residents of the public
housing site who wish to remain in or return to the
revitalized community;
``(K) the extent to which the plan sustains or creates more
project-based housing units available to persons eligible for
public housing in markets where there is demand for the
maintenance or creation of such units;
``(L) the extent to which the plan gives to existing
residents priority for occupancy in dwelling units in the
revitalized community; and''.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
Paragraph (1) of section 24(m) of the United States Housing
Act of 1937 (42 U.S.C. 1437v(m)(1)) is amended to read as
follows:
``(1) Authorization of appropriations.--There are
authorized to be appropriated for grants under this section
such sums as may be necessary for each of fiscal years 2003
and 2004.''.
SEC. 4. EXTENSION OF PROGRAM.
Section 24(n) of the United States Housing Act of 1937 (42
U.S.C. 1437v(n)) is amended by striking ``September 30,
2002'' and inserting ``September 30, 2004''.
[[Page H8927]]
Discharged From the Committee on Financial Services and Passed
S. 2239, to amend the National Housing Act to simplify the
downpayment requirements for FHA mortgage insurance for single family
homebuyers.
S. 2239
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 ``FHA Downpayment
Simplification Act of 2002''.
SEC. 2. DOWNPAYMENT SIMPLIFICATION.
Section 203 of the National Housing Act (12 U.S.C. 1709) is
amended--
(1) in subsection (b)--
(A) by striking ``shall--'' and inserting ``shall comply
with the following:'';
(B) in paragraph (2)--
(i) in subparagraph (A), in the matter that precedes clause
(ii), by moving the margin 2 ems to the right;
(ii) in the undesignated matter immediately following
subparagraph (B)(iii)--
(I) by striking the second and third sentences of such
matter;
(II) by striking the seventh sentence (relating to
principal obligation) and all that follows through the end of
the ninth sentence (relating to charges and fees); and
(III) by striking the eleventh sentence (relating to
disclosure notice) and all that follows through the end of
the last undesignated paragraph (relating to disclosure
notice requirements); and
(iii) by striking subparagraph (B) and inserting the
following:
``(B) not to exceed an amount equal to the sum of--
``(i) the amount of the mortgage insurance premium paid at
the time the mortgage is insured; and
``(ii) in the case of--
``(I) a mortgage for a property with an appraised value
equal to or less than $50,000, 98.75 percent of the appraised
value of the property;
``(II) a mortgage for a property with an appraised value in
excess of $50,000 but not in excess of $125,000, 97.65
percent of the appraised value of the property;
``(III) a mortgage for a property with an appraised value
in excess of $125,000, 97.15 percent of the appraised value
of the property; or
``(IV) notwithstanding subclauses (II) and (III), a
mortgage for a property with an appraised value in excess of
$50,000 that is located in an area of the State for which the
average closing cost exceeds 2.10 percent of the average, for
the State, of the sale price of properties located in the
State for which mortgages have been executed, 97.75 percent
of the appraised value of the property.'';
(C) by transferring and inserting the text of paragraph
(10)(B) after the period at the end of the first sentence of
the undesignated paragraph that immediately follows paragraph
(2)(B) (relating to the definition of ``area''); and
(D) by striking paragraph (10); and
(2) by inserting after subsection (e), the following:
``(f) Disclosure of Other Mortgage Products.--
``(1) In general.--In conjunction with any loan insured
under this section, an original lender shall provide to each
prospective borrower a disclosure notice that provides a 1-
page analysis of mortgage products offered by that lender and
for which the borrower would qualify.
``(2) Notice.--The notice required under paragraph (1)
shall include--
``(A) a generic analysis comparing the note rate (and
associated interest payments), insurance premiums, and other
costs and fees that would be due over the life of the loan
for a loan insured by the Secretary under subsection (b) with
the note rates, insurance premiums (if applicable), and other
costs and fees that would be expected to be due if the
mortgagor obtained instead other mortgage products offered by
the lender and for which the borrower would qualify with a
similar loan-to-value ratio in connection with a conventional
mortgage (as that term is used in section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)) or section 302(b)(2) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as
applicable), assuming prevailing interest rates; and
``(B) a statement regarding when the requirement of the
mortgagor to pay the mortgage insurance premiums for a
mortgage insured under this section would terminate, or a
statement that the requirement shall terminate only if the
mortgage is refinanced, paid off, or otherwise terminated.''.
SEC. 3. CONFORMING AMENDMENTS.
Section 245 of the National Housing Act (12 U.S.C. 1715z-
10) is amended--
(1) in subsection (a), by striking ``, or if the
mortgagor'' and all that follows through ``case of
veterans''; and
(2) in subsection (b)(3), by striking ``, or, if the'' and
all that follows through ``for veterans,''.
SEC. 4. REPEAL OF GNMA GUARANTEE FEE INCREASE.
Section 972 of the Higher Education Amendments of 1998
(Public Law 105-244; 112 Stat. 1837) is hereby repealed.
SEC. 5. INDEXING OF FHA MULTIFAMILY HOUSING LOAN LIMITS.
(a) The National Housing Act (12 U.S.C. 1701 et seq.) is
amended by inserting after section 206 the following new
section 206A (12 U.S.C. 1712A):
``SEC. 206A. INDEXING OF FHA MULTIFAMILY HOUSING LOAN LIMITS.
``(a) Method of Indexing.--The dollar amounts set forth
in--
``(1) section 207(c)(3)(A) (12 U.S.C. 1713(c)(3)(A));
``(2) section 213(b)(2)(A) (12 U.S.C. 1715e(b)(2)(A));
``(3) section 220(d)(3)(B)(iii)(I) (12 U.S.C.
1715k(d)(3)(B)(iii)(I));
``(4) section 221(d)(3)(ii)(I) (12 U.S.C.
1715l(d)(3)(ii)(I));
``(5) section 221(d)(4)(ii)(I) (12 U.S.C.
1715l(d)(4)(ii)(I));
``(6) section 231(c)(2)(A) (12 U.S.C. 1715v(c)(2)(A)); and
``(7) section 234(e)(3)(A) (12 U.S.C. 1715y(e)(3)(A));
(collectively hereinafter referred to as the ``Dollar
Amounts'') shall be adjusted annually (commencing in 2004) on
the effective date of the Federal Reserve Board's adjustment
of the $400 figure in the Home Ownership and Equity
Protection Act of 1994 (HOEPA). The adjustment of the Dollar
Amounts shall be calculated using the percentage change in
the Consumer Price Index for All Urban Consumers (CPI-U) as
applied by the Federal Reserve Board for purposes of the
above-described HOEPA adjustment.
``(b) Notification.--The Federal Reserve Board on a timely
basis shall notify the Secretary, or his designee, in writing
of the adjustment described in subsection (a) and of the
effective date of such adjustment in order to permit the
Secretary to undertake publication in the Federal Register of
corresponding adjustments to the Dollar Amounts. The dollar
amount of any adjustment shall be rounded to the next lower
dollar.''.
(b) Technical and Conforming Changes.--(1) Section
207(c)(3) of the National Housing Act (12 U.S.C. 1713(c)(3))
is amended--
(A) by inserting ``(A)'' after ``(3)'';
(B) by striking ``and accept that the Secretary'' through
and including ``in this paragraph'' and inserting in lieu
thereof:
``(B) the Secretary may, by regulation, increase any of the
dollar amount limitations in subparagraph (A) (as such
limitations may have been adjusted in accordance with section
206A of this Act)''.
(2) Section 213(b)(2) of the National Housing Act (12
U.S.C. 1715e(b)(2)) is amended--
(A) by inserting ``(A)'' following ``(2)'';
(B) by striking ``: Provided further, That'' the first time
that it occurs, through and including ``contained in this
paragraph'' and inserting in lieu thereof: ``; (B)(i) the
Secretary may, by regulation, increase any of the dollar
amount limitations in subparagraph (A) (as such limitations
may have been adjusted in accordance with section 206A of
this Act)'';
(C) by striking ``: Provided further, That'' the second
time it occurs and inserting in lieu thereof: ``; and (ii)'';
(D) by striking ``: And provided further, That'' and
inserting in lieu thereof'' ``; and (iii)'';
(E) by striking ``with this subsection without regard to
the preceding proviso'' at the end of that subsection and
inserting in lieu thereof: ``with this subparagraph
(B)(i).''.
(3) Section 220(d)(3)(B)(iii) of the National Housing Act
(12 U.S.C. 1715k(d)(3)(B)(iii)) is amended--
(A) by inserting ``(I)'' following ``(iii)'';
(B) by striking ``design; and except that'' and inserting
in lieu thereof: ``design; and (II)'';
(C) by striking ``any of the foregoing dollar amount
limitations contained in this clause'' and inserting in lieu
thereof: ``any of the dollar amount limitations in
subparagraph (B)(iii)(I) (as such limitations may have been
adjusted in accordance with section 206A of this Act)'';
(D) by striking ``: Provided, That'' through and including
``proviso'' and inserting in lieu thereof: ``with respect to
dollar amount limitations applicable to rehabilitation
projects described in subclause (II), the Secretary may, by
regulation, increase the dollar amount limitations contained
in subparagraph (B)(iii)(I) (as such limitations may have
been adjusted in accordance with section 206A of this Act)'';
(E) by striking ``: Provided further,'' and inserting in
lieu thereof: ``; (III)'';
(F) by striking ``subparagraph'' in the second proviso and
inserting in lieu thereof ``subparagraph (B)(iii)(I)'';
(G) in the last proviso, by striking ``: And provided
further, That'' and all that follows through and including
``this clause'' and inserting in lieu thereof: ``; (IV) with
respect to rehabilitation projects involving not more than
five family units, the Secretary may further increase any of
the dollar limitations which would otherwise apply to such
projects''.
(4) Section 221(d)(3)(ii) of the National Housing Act (12
U.S.C. 1715l(d)(3)(ii)) is amended--
(A) by inserting ``(I)'' following ``(ii)'';
(B) by striking ``; and except that'' and all that follows
through and including ``in this clause'' and inserting in
lieu thereof: ``; (II) the Secretary may, by regulation,
increase any of the dollar amount limitations in subclause
(I) (as such limitations may have been adjusted in accordance
with section 206A of this Act)''.
(5) Section 221(d)(4)(ii) of the National Housing Act (12
U.S.C. 1715l(d)(4)(ii)) is amended--
(A) by inserting ``(I)'' following ``(ii)'';
(B) by striking ``; and except that'' and all that follows
through and including ``in this clause'' and inserting in
lieu thereof: ``; (II)
[[Page H8928]]
the Secretary may, by regulation, increase any of the dollar
limitations in subclause (I) (as such limitations may have
been adjusted in accordance with section 206A of this Act)''.
(6) Section 231(c)(2) of the National Housing Act (12
U.S.C. 1715v(c)(2)) is amended--
(A) by inserting ``(A)'' following ``(2)'';
(B) by striking ``; and except that'' and all that follows
through and including ``in this paragraph'' and inserting in
lieu thereof: ``; (B) the Secretary may, by regulation,
increase any of the dollar limitations in subparagraph (A)
(as such limitations may have been adjusted in accordance
with section 206A of this Act)'';
(C) by striking ``: Provided, That'' and all that follows
through and including ``of this section'' and inserting in
lieu thereof: ``; (C) the Secretary may, by regulation,
increase any of the dollar limitations in subparagraph (A)
(as such limitations may have been adjusted in accordance
with section 206A of this Act)''.
(7) Section 234(e)(3) of the National Housing Act (12
U.S.C. 1715y(e)(3)) is amended--
(A) by inserting ``(A)'' following ``(3)'';
(B) by replacing ``$38,025'' with ``$42,048''; ``$42,120''
with ``$48,481''; ``$50,310'' with ``$58,469''; ``$62,010''
with ``$74,840''; ``$70,200'' with ``$83,375''; ``$43,875''
with ``$44,250''; ``$49,140'' with ``$50,724''; ``$60,255''
with ``$61,680''; ``$75,465'' with ``$79,793''; and
``$85,328'' with ``$87,588'';
(C) by striking ``; except that each'' and all that follows
through and including ``contained in this paragraph'' and
inserting in lieu thereof: ``; (B) the Secretary may, by
regulation, increase any of the dollar limitations in
subparagraph (A) (as such
limitations may have been adjusted in accordance with section
206A of this Act)''.
Discharged from the Committee on Government Reform and Passed
H.R. 5280, to designate the facility of the United States Postal
Service located at 2001 East Willard Street in Philadelphia,
Pennsylvania, as the ``Robert A. Borski Post Office Building''.
H.R. 5280
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. ROBERT A. BORSKI POST OFFICE BUILDING.
(a) Designation.--The facility of the United States Postal
Service located at 2001 East Willard Street in Philadelphia,
Pennsylvania, shall be known and designated as the ``Robert
A. Borski Post Office Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the Robert A. Borski Post Office Building.
Discharged From the Committee on Government Reform and Passed
H.R. 5586, to designate the facility of the United States Postal
Service located at 141 Erie Street in Linesville, Pennsylvania, as the
``James R. Merry Post Office Building''.
H.R. 5586
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. JAMES R. MERRY POST OFFICE BUILDING.
(a) Designation.--The facility of the United States Postal
Service located at 141 Erie Street in Linesville,
Pennsylvania, shall be known and designated as the ``James R.
Merry Post Office Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the James R. Merry Post Office Building.
Discharged from the Committee on Government Reform and Passed
H.R. 5609, to designate the facility of the United States Postal
Service located at 600 East 1st Street in Rome, Georgia, as the
``Martha Berry Post Office''.
H.R. 5609
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. MARTHA BERRY POST OFFICE.
(a) Designation.--The facility of the United States Postal
Service located at 600 East 1st Street in Rome, Georgia,
shall be known and designated as the ``Martha Berry Post
Office''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the Martha Berry Post Office.
Discharged From the Committee on Government Reform and Passed
H.R. 628, to designate the facility of the United States Postal
Service located at 440 South Orange Blossom Trail in Orlando, Florida,
as the ``Arthur `Pappy' Kennedy Post Office''.
H.R. 628
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DESIGNATION.
The facility of the United States Postal Service located at
440 South Orange Blossom Trail in Orlando, Florida, shall be
known and designated as the ``Arthur `Pappy' Kennedy Post
Office''.
SEC. 2. REFERENCES.
Any reference in a law, map, regulation, document, paper,
or other record of the United States to the facility referred
to in section 1 shall be deemed to be a reference to the
Arthur ``Pappy'' Kennedy Post Office.
Discharged From the Committee on Government Reform and Passed
H.R. 629, to designate the facility of the United States Postal
Service located at 1601-1 Main Street in Jacksonville, Florida, as the
``Eddie Mae Steward Post Office''.
H.R. 629
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DESIGNATION.
The facility of the United States Postal Service located at
1601-1 Main Street in Jacksonville, Florida, shall be known
and designated as the ``Eddie Mae Steward Post Office''.
SEC. 2. REFERENCES.
Any reference in a law, map, regulation, document, paper,
or other record of the United States to the facility referred
to in section 1 shall be deemed to be a reference to the
Eddie Mae Steward Post Office.
Discharged From the Committee on Government Reform and Passed
H.R. 3775, to designate the facility of the United States Postal
Service located at 1502 East Kiest Boulevard in Dallas, Texas, as the
``Dr. Caesar A.W. Clark, Sr. Post Office Building''.
H.R. 3775
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. DR. CAESAR A.W. CLARK, SR. POST OFFICE BUILDING.
(a) Designation.--The facility of the United States Postal
Service located at 1502 East Kiest Boulevard in Dallas,
Texas, shall be known and designated as the ``Dr. Caesar A.W.
Clark, Sr. Post Office Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the Dr. Caesar A.W. Clark, Sr. Post Office
Building.
Discharged From the Committee on Government Reform and Passed
H.R. 5495, to designate the facility of the United States Postal
Service located at 115 West Pine Street in Hattiesburg, Mississippi, as
the ``Major Henry A. Commiskey, Sr. Post Office Building''.
H.R. 5495
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. MAJOR HENRY A. COMMISKEY, SR. POST OFFICE
BUILDING.
(a) Designation.--The facility of the United States Postal
Service located at 115 West Pine Street in Hattiesburg,
Mississippi, shall be known and designated as the ``Major
Henry A. Commiskey, Sr. Post Office Building''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
facility referred to in subsection (a) shall be deemed to be
a reference to the Major Henry A. Commiskey, Sr. Post Office
Building.
Discharged From the Committee on Transportation and Infrastructure and
Passed
H.R. 5604, to designate the Federal building and United States
courthouse located at 46 East Ohio Street in Indianapolis, Indiana, as
the ``Birch Bayh Federal Building and United States Courthouse''.
H.R. 5604
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 and United States courthouse located
at 46 East Ohio Street in Indianapolis, Indiana, shall be
known and designated as the ``Birch Bayh Federal Building and
United States Courthouse''.
SEC. 2. REFERENCES.
Any reference in a law, map, regulation, document, paper,
or other record of the United States to the Federal building
and United States courthouse referred to in section 1 shall
be deemed to be a reference to the ``Birch Bayh Federal
Building and United States Courthouse''.
Mr. OBERSTAR. Mr. Speaker, H.R. 5604 is a bill to designate the
federal building located at 46 East Ohio St., Indianapolis, Indiana, as
the ``Birch Bayh Federal Building and United States Courthouse.'' This
bill is sponsored by the entire Indiana delegation in the U.S. House of
Representatives.
Birch Bayh was born on January 22, 1928, in Terre Haute, Indiana. He
attended public schools in Indiana and joined the army in
[[Page H8929]]
1946. In 1954, he was elected to the Indiana House of Representatives
where he served for eight years, including terms as Minority Leader and
later, as Speaker of the House.
In 1962, when he was only 34 years old, Birch Bayh was elected to the
first of three terms in the U.S. Senate. Senator Bayh quickly became a
leader on issues of education, equal rights, and Constitutional law. As
Chairman of the Constitutional Subcommittee of the Senate Judiciary
Committee, Senator Bayh authored two amendments to the Constitution--
the 25th Amendment setting forth the order of Presidential succession,
and the 26th Amendment lowering the voting age from 21 to 18 years of
age. During his time in the Senate, Senator Bayh also served on the
Appropriations Committee and the Select Committee on Intelligence.
Senator Bayh was a champion of equal rights for women and minorities.
He authored Title IX to the Higher Education Act, which mandates equal
opportunities for women students and faculty in our Nation's schools.
Further, Senator Bayh was a strong supporter of two pieces of landmark
legislation--the 1964 Civil Rights Act and the 1965 Voting Rights Act.
He was also instrumental in enacting the Juvenile Justice Act, which
mandates the separation of juvenile offenders from adult prison
populations.
Since leaving the Senate in the 1980s, Senator Bayh has continued his
commitment to public service. He serves as a member of the William
Fulbright Foreign Scholarship Board, National Institute Against
Prejudice and Violence, and the University of Virginia's Miller Center
Commission on Presidential Disability and the 25th Amendment.
It is entirely fitting and proper to honor the contributions of
Senator Birch Bayh with this designation and I urge my colleagues to
support H.R. 5604.
Discharged From the Committee on Transportation and Infrastructure and
Passed
H.R. 5611, to designate the Federal building located at 324 Twenty-
Fifth Street in Ogden, Utah, as the ``James V. Hansen Federal
Building''.
H.R. 5611
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 324 Twenty-Fifth Street in
Ogden, Utah, shall be known and designated as the ``James V.
Hansen 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 ``James V. Hansen Federal Building''.
SEC. 3. EFFECTIVE DATE.
This Act shall take effect on January 1, 2003.
Mr. OBERSTAR. Mr. Speaker, H.R. 5611 is a bill to designate the
federal building located at 324 Twenty-Fifth Street in Ogden, Utah as
the James V. Hansen Federal Building.
Congressman Hansen began his career in public service in local
government in Farmington, Utah. He later served four terms in the Utah
House of Representatives, where he served as Speaker of the House in
his final term. In 1980, he was elected to the United States Congress
from Utah's First Congressional District, and has served 11 consecutive
terms.
During his service in the House, Congressman Hansen has been an
active member of the Armed Services Committee, Chairman of the Ethics
Committee, and most recently, Chairman of the Resources Committee. He
has fought for legislation to revise the private mortgage insurance
program to benefit American homeowners, and has been instrumental in
the development of environmental and natural resources policy.
After 22 years of service in the U.S. House of Representatives,
Congressman Hansen has decided to retire. It is both fitting and proper
that on this, the last day of the Session for this Body in the 107th
Congress, we honor the career of Congressman Hansen with this
designation.
I urge my colleagues to support H.R. 5611.
Discharged From the Committee on Ways and Means and Passed
H.R. 5728, to amend the Internal Revenue Code of 1986 to provide
fairness in tax collection procedures and improved administrative
efficiency and confidentiality and to reform its penalty and interest
provisions.
H.R. 5728
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Tax
Administration Reform Act of 2002''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be considered
to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--
Sec. 1. Short title; etc.
TITLE I--FAIRNESS IN TAX COLLECTION PROCEDURES
Sec. 101. Partial payment of tax liability in installment agreements.
Sec. 102. Extension of time for return of property.
Sec. 103. Individuals held harmless on wrongful levy, etc. on
individual retirement plan.
Sec. 104. Seven-day threshold on tolling of statute of limitations
during tax review.
Sec. 105. Study of liens and levies.
Sec. 106. Low-income taxpayer clinics.
TITLE II--IMPROVED ADMINISTRATIVE EFFICIENCY AND CONFIDENTIALITY
Subtitle A--Efficiency of Tax Administration
Sec. 201. Revisions relating to termination of employment of Internal
Revenue Service employees for misconduct.
Sec. 202. Confirmation of authority of Tax Court to apply doctrine of
equitable recoupment.
Sec. 203. Jurisdiction of Tax Court over collection due process cases.
Sec. 204. Office of Chief Counsel review of offers in compromise.
Sec. 205. 15-day delay in due date for electronically filed individual
income tax returns.
Subtitle B--Confidentiality and Disclosure
Sec. 211. Collection activities with respect to joint return
disclosable to either spouse based on oral request.
Sec. 212. Taxpayer representatives not subject to examination on sole
basis of representation of taxpayers.
Sec. 213. Compliance by contractors with confidentiality safeguards.
Sec. 214. Higher standards for requests for and consents to disclosure.
Sec. 215. Notice to taxpayer concerning administrative determination of
browsing; annual report.
Sec. 216. Expanded disclosure in emergency circumstances.
Sec. 217. Disclosure to State officials of proposed actions related to
section 501(c)(3) organizations.
Subtitle C--Other Provisions
Sec. 221. Better means of communicating with taxpayers.
Sec. 222. Enrolled agents.
Sec. 223. Financial management service fees.
Sec. 224. Amendment to Treasury auction reforms.
TITLE III--REFORM OF PENALTY AND INTEREST PROVISIONS
Sec. 301. Failure to pay estimated tax penalty converted to interest
charge on accumulated unpaid balance.
Sec. 302. Exclusion from gross income for interest on overpayments of
income tax by individuals.
Sec. 303. Abatement of interest.
Sec. 304. Deposits made to suspend running of interest on potential
underpayments.
Sec. 305. Expansion of interest netting for individuals.
Sec. 306. Waiver of certain penalties for first-time unintentional
minor errors.
Sec. 307. Frivolous tax submissions.
Sec. 308. Clarification of application of Federal tax deposit penalty.
TITLE I--FAIRNESS IN TAX COLLECTION PROCEDURES
SEC. 101. PARTIAL PAYMENT OF TAX LIABILITY IN INSTALLMENT
AGREEMENTS.
(a) In General.--
(1) Section 6159(a) (relating to authorization of
agreements) is amended--
(A) by striking ``satisfy liability for payment of'' and
inserting ``make payment on'', and
(B) by inserting ``full or partial'' after ``facilitate''.
(2) Section 6159(c) (relating to Secretary required to
enter into installment agreements in certain cases) is
amended in the matter preceding paragraph (1) by inserting
``full'' before ``payment''.
(b) Requirement To Review Partial Payment Agreements Every
Two Years.--Section 6159 is amended by redesignating
subsections (d) and (e) as subsections (e) and (f),
respectively, and inserting after subsection (c) the
following new subsection:
``(d) Secretary Required To Review Installment Agreements
for Partial Collection Every Two Years.--In the case of an
agreement entered into by the Secretary under subsection (a)
for partial collection of a tax liability, the Secretary
shall review the agreement at least once every 2 years.''.
(c) Effective Date.--The amendments made by this section
shall apply to agreements entered into on or after the date
of the enactment of this Act.
SEC. 102. EXTENSION OF TIME FOR RETURN OF PROPERTY.
(a) Extension of Time for Return of Property Subject to
Levy.--Subsection (b)
[[Page H8930]]
of section 6343 (relating to return of property) is amended
by striking ``9 months'' and inserting ``2 years''.
(b) Period of Limitation on Suits.--Subsection (c) of
section 6532 (relating to suits by persons other than
taxpayers) is amended--
(1) in paragraph (1) by striking ``9 months'' and inserting
``2 years'', and
(2) in paragraph (2) by striking ``9-month'' and inserting
``2-year''.
(c) Effective Date.--The amendments made by this section
shall apply to--
(1) levies made after the date of the enactment of this
Act, and
(2) levies made on or before such date if the 9-month
period has not expired under section 6343(b) of the Internal
Revenue Code of 1986 (without regard to this section) as of
such date.
SEC. 103. INDIVIDUALS HELD HARMLESS ON WRONGFUL LEVY, ETC.,
ON INDIVIDUAL RETIREMENT PLAN.
(a) In General.--Section 6343 (relating to authority to
release levy and return property) is amended by adding at the
end the following new subsection:
``(f) Individuals Held Harmless on Wrongful Levy, etc., on
Individual Retirement Plan.--
``(1) In general.--If the Secretary determines that an
individual retirement plan has been levied upon in a case to
which subsection (b) or (d)(2)(A) applies, an amount equal to
the sum of--
``(A) the amount of money returned by the Secretary on
account of such levy, and
``(B) interest paid under subsection (c) on such amount of
money,
may be deposited into an individual retirement plan (other
than an endowment contract) to which a rollover from the plan
levied upon is permitted.
``(2) Treatment as rollover.--The distribution on account
of the levy and any deposit under paragraph (1) with respect
to such distribution shall be treated for purposes of this
title as if such distribution and deposit were part of a
rollover described in section 408(d)(3)(A)(i); except that--
``(A) interest paid under subsection (c) shall be treated
as part of such distribution and as not includible in gross
income,
``(B) the 60-day requirement in such section shall be
treated as met if the deposit is made not later than the 60th
day after the day on which the individual receives an amount
under paragraph (1) from the Secretary, and
``(C) such deposit shall not be taken into account under
section 408(d)(3)(B).
``(3) Refund, etc., of income tax on levy.--If any amount
is includible in gross income for a taxable year by reason of
a levy referred to in paragraph (1) and any portion of such
amount is treated as a rollover under paragraph (2), any tax
imposed by chapter 1 on such portion shall not be assessed,
and if assessed shall be abated, and if collected shall be
credited or refunded as an overpayment made on the due date
for filing the return of tax for such taxable year.
``(4) Interest.--Notwithstanding subsection (d), interest
shall be allowed under subsection (c) in a case in which the
Secretary makes a determination described in subsection
(d)(2)(A) with respect to a levy upon an individual
retirement plan.''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid under subsections (b), (c), and
(d)(2)(A) of section 6343 of the Internal Revenue Code of
1986 after December 31, 2002.
SEC. 104. SEVEN-DAY THRESHOLD ON TOLLING OF STATUTE OF
LIMITATIONS DURING TAX REVIEW.
(a) In General.--Section 7811(d)(1) (relating to suspension
of running of period of limitation) is amended by inserting
after ``application,'' the following: ``but only if the date
of such decision is at least 7 days after the date of the
taxpayer's application''.
(b) Effective Date.--The amendment made by this section
shall apply to applications filed after the date of the
enactment of this Act.
SEC. 105. STUDY OF LIENS AND LEVIES.
The Secretary of the Treasury, or the Secretary's delegate,
shall conduct a study of the practices of the Internal
Revenue Service concerning liens and levies. The study shall
examine--
(1) the declining use of liens and levies by the Internal
Revenue Service, and
(2) the practicality of recording liens and levying against
property in cases in which the cost of such actions exceeds
the amount to be realized from such property.
Not later than 1 year after the date of the enactment of this
Act, the Secretary shall submit such study to the Committee
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate.
SEC. 106. LOW-INCOME TAXPAYER CLINICS.
(a) Limitation on Amount of Grants.--Paragraph (1) of
section 7526(c) (relating to special rules and limitations)
is amended by striking ``$6,000,000 per year'' and inserting
``$9,000,000 for 2002, $12,000,000 for 2003, and $15,000,000
for each year thereafter''.
(b) Promotion of Clinics.--Section 7526(c) is amended by
adding at the end the following new paragraph:
``(7) Promotion of clinics.--The Secretary is authorized to
promote the benefits of and encourage the use of low-income
taxpayer clinics through the use of mass communications,
referrals, and other means.''.
TITLE II--IMPROVED ADMINISTRATIVE EFFICIENCY AND CONFIDENTIALITY
Subtitle A--Efficiency of Tax Administration
SEC. 201. REVISIONS RELATING TO TERMINATION OF EMPLOYMENT OF
INTERNAL REVENUE SERVICE EMPLOYEES FOR
MISCONDUCT.
(a) In General.--Subchapter A of chapter 80 (relating to
application of internal revenue laws) is amended by inserting
after section 7804 the following new section:
``SEC. 7804A. DISCIPLINARY ACTIONS FOR MISCONDUCT.
``(a) Disciplinary Actions.--
``(1) In general.--Subject to subsection (c), the
Commissioner shall take an action in accordance with the
guidelines established under paragraph (2) against any
employee of the Internal Revenue Service if there is a final
administrative or judicial determination that such employee
committed any act or omission described under subsection (b)
in the performance of the employee's official duties or where
a nexus to the employee's position exists.
``(2) Guidelines.--The Commissioner shall issue guidelines
for determining the appropriate level of discipline, up to
and including termination of employment, for committing any
act or omission described under subsection (b).
``(b) Acts or Omissions.--The acts or omissions described
under this subsection are--
``(1) willful failure to obtain the required approval
signatures on documents authorizing the seizure of a
taxpayer's home, personal belongings, or business assets;
``(2) willfully providing a false statement under oath with
respect to a material matter involving a taxpayer or taxpayer
representative;
``(3) with respect to a taxpayer or taxpayer
representative, the willful violation of--
``(A) any right under the Constitution of the United
States;
``(B) any civil right established under--
``(i) title VI or VII of the Civil Rights Act of 1964;
``(ii) title IX of the Education Amendments of 1972;
``(iii) the Age Discrimination in Employment Act of 1967;
``(iv) the Age Discrimination Act of 1975;
``(v) section 501 or 504 of the Rehabilitation Act of 1973;
or
``(vi) title I of the Americans with Disabilities Act of
1990; or
``(C) the Internal Revenue Service policy on unauthorized
inspection of returns or return information;
``(4) willfully falsifying or destroying documents to
conceal mistakes made by any employee with respect to a
matter involving a taxpayer or taxpayer representative;
``(5) assault or battery on a taxpayer or taxpayer
representative, but only if there is a criminal conviction,
or a final adverse judgment by a court in a civil case, with
respect to the assault or battery;
``(6) willful violations of this title, Department of the
Treasury regulations, or policies of the Internal Revenue
Service (including the Internal Revenue Manual) for the
purpose of retaliating against, or harassing, a taxpayer or
taxpayer representative;
``(7) willful misuse of the provisions of section 6103 for
the purpose of concealing information from a congressional
inquiry;
``(8) willful failure to file any return of tax required
under this title on or before the date prescribed therefor
(including any extensions) when a tax is due and owing,
unless such failure is due to reasonable cause and not due to
willful neglect;
``(9) willful understatement of Federal tax liability,
unless such understatement is due to reasonable cause and not
due to willful neglect; and
``(10) threatening to audit a taxpayer, or to take other
action under this title, for the purpose of extracting
personal gain or benefit.
``(c) Determinations of Commissioner.--
``(1) In general.--The Commissioner may take a personnel
action other than a disciplinary action provided for in the
guidelines under subsection (a)(2) for an act or omission
described under subsection (b).
``(2) Discretion.--The exercise of authority under
paragraph (1) shall be at the sole discretion of the
Commissioner and may not be delegated to any other officer.
The Commissioner, in his sole discretion, may establish a
procedure to determine if an individual should be referred to
the Commissioner for a determination by the Commissioner
under paragraph (1).
``(3) No appeal.--Notwithstanding any other provision of
law, any determination of the Commissioner under this
subsection may not be reviewed in any administrative or
judicial proceeding. A finding that an act or omission
described under subsection (b) occurred may be reviewed.
``(d) Definition.--For the purposes of the provisions
described in clauses (i), (ii), and (iv) of subsection
(b)(3)(B), references to a program or activity regarding
Federal financial assistance or an education program or
activity receiving Federal financial assistance shall include
any program or activity conducted by the Internal Revenue
Service for a taxpayer.
``(e) Annual Report.--The Commissioner shall submit to
Congress annually a report on disciplinary actions under this
section.''.
(b) Clerical Amendment.--The table of sections for chapter
80 is amended by inserting after the item relating to section
7804 the following new item:
``Sec. 7804A. Disciplinary actions for misconduct.''.
[[Page H8931]]
(c) Repeal of Superseded Section.--Section 1203 of the
Internal Revenue Service Restructuring and Reform Act of 1998
(Public Law 105-206; 112 Stat. 720) is repealed.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 202. CONFIRMATION OF AUTHORITY OF TAX COURT TO APPLY
DOCTRINE OF EQUITABLE RECOUPMENT.
(a) Confirmation of Authority of Tax Court To Apply
Doctrine of Equitable Recoupment.--Subsection (b) of section
6214 (relating to jurisdiction over other years and quarters)
is amended by adding at the end the following new sentence:
``Notwithstanding the preceding sentence, the Tax Court may
apply the doctrine of equitable recoupment to the same extent
that it is available in civil tax cases before the district
courts of the United States and the United States Court of
Federal Claims.''.
(b) Effective Date.--The amendments made by this section
shall apply to any action or proceeding in the Tax Court with
respect to which a decision has not become final (as
determined under section 7481 of the Internal Revenue Code of
1986) as of the date of the enactment of this Act.
SEC. 203. JURISDICTION OF TAX COURT OVER COLLECTION DUE
PROCESS CASES.
(a) In General.--Section 6330(d)(1) (relating to judicial
review of determination) is amended to read as follows:
``(1) Judicial review of determination.--The person may,
within 30 days of a determination under this section, appeal
such determination to the Tax Court (and the Tax Court shall
have jurisdiction with respect to such matter).''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to judicial appeals filed after the date of the
enactment of this Act.
SEC. 204. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS IN
COMPROMISE.
(a) In General.--Section 7122(b) (relating to record) is
amended by striking ``Whenever a compromise'' and all that
follows through ``his delegate'' and inserting ``If the
Secretary determines that an opinion of the General Counsel
for the Department of the Treasury, or the Counsel's
delegate, is required with respect to a compromise, there
shall be placed on file in the office of the Secretary such
opinion''.
(b) Conforming Amendments.--Section 7122(b) is amended by
striking the second and third sentences.
(c) Effective Date.--The amendments made by this section
shall apply to offers-in-compromise submitted or pending on
or after the date of the enactment of this Act.
SEC. 205. 15-DAY DELAY IN DUE DATE FOR ELECTRONICALLY FILED
INDIVIDUAL INCOME TAX RETURNS.
(a) In General.--Section 6072 (relating to time for filing
income tax returns) is amended by adding at the end the
following new subsection:
``(f) Electronically Filed Returns of Individuals.--
``(1) In general.--Returns of an individual under section
6012 or 6013 (other than an individual to whom subsection (c)
applies) which are filed electronically--
``(A) in the case of returns filed on the basis of a
calendar year, shall be filed on or before the 30th day of
April following the close of the calendar year, and
``(B) in the case of returns filed on the basis of a fiscal
year, shall be filed on or before the last day of the 4th
month following the close of the fiscal year.
``(2) Electronic filing.--Paragraph (1) shall not apply to
any return unless--
``(A) such return is accepted by the Secretary, and
``(B) the balance due (if any) shown on such return is paid
electronically in a manner prescribed by the Secretary.
``(3) Special rules.--
``(A) Estimated tax.--If--
``(i) paragraph (1) applies to an individual for any
taxable year, and
``(ii) there is an overpayment of tax shown on the return
for such year which the individual allows against the
individual's obligation under section 6641,
then, with respect to the amount so allowed, any reference in
section 6641 to the April 15 following such taxable year
shall be treated as a reference to April 30.
``(B) References to due date.--Paragraph (1) shall apply
solely for purposes of determining the due date for the
individual's obligation to file and pay tax and, except as
otherwise provided by the Secretary, shall be treated as an
extension of the due date for any other purpose under this
title.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2001.
Subtitle B--Confidentiality and Disclosure
SEC. 211. COLLECTION ACTIVITIES WITH RESPECT TO JOINT RETURN
DISCLOSABLE TO EITHER SPOUSE BASED ON ORAL
REQUEST.
(a) In General.--Paragraph (8) of section 6103(e) (relating
to disclosure of collection activities with respect to joint
return) is amended by striking ``in writing'' the first place
it appears.
(b) Effective Date.--The amendment made by this section
shall apply to requests made after the date of the enactment
of this Act.
SEC. 212. TAXPAYER REPRESENTATIVES NOT SUBJECT TO EXAMINATION
ON SOLE BASIS OF REPRESENTATION OF TAXPAYERS.
(a) In General.--Subsection (h) of section 6103 (relating
to disclosure to certain Federal officers and employees for
purposes of tax administration, etc.) is amended by adding at
the end the following new paragraph:
``(7) Taxpayer representatives.--Notwithstanding paragraph
(1), the return of the representative of a taxpayer whose
return is being examined by an officer or employee of the
Department of the Treasury shall not be open to inspection by
such officer or employee on the sole basis of the
representative's relationship to the taxpayer unless a
supervisor of such officer or employee has approved the
inspection of the return of such representative on a basis
other than by reason of such relationship.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 213. COMPLIANCE BY CONTRACTORS WITH CONFIDENTIALITY
SAFEGUARDS.
(a) In General.--Section 6103(p) (relating to State law
requirements) is amended by adding at the end the following
new paragraph:
``(9) Disclosure to contractors.--Notwithstanding any other
provision of this section, no return or return information
shall be disclosed by any officer or employee of any Federal
agency or State to any contractor of such agency or State
unless such agency or State--
``(A) has requirements in effect which require each
contractor of such agency or State which would have access to
returns or return information to provide safeguards (within
the meaning of paragraph (4)) to protect the confidentiality
of such returns or return information,
``(B) agrees to conduct an annual, on-site review (mid-
point review in the case of contracts of less than 1 year in
duration) of each contractor to determine compliance with
such requirements,
``(C) submits the findings of the most recent review
conducted under subparagraph (B) to the Secretary as part of
the report required by paragraph (4)(E), and
``(D) certifies to the Secretary for the most recent annual
period that all contractors are in compliance with all such
requirements.
The certification required by subparagraph (D) shall include
the name and address of each contractor, a description of the
contract of the contractor with the Federal agency or State,
and the duration of such contract.''.
(b) Conforming Amendment.--Subparagraph (B) of section
6103(p)(8) is amended by inserting ``or paragraph (9)'' after
``subparagraph (A)''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to disclosures made after December 31, 2002.
(2) Certifications.--The first certification under section
6103(p)(9)(D) of the Internal Revenue Code of 1986, as added
by subsection (a), shall be made with respect to calendar
year 2003.
SEC. 214. HIGHER STANDARDS FOR REQUESTS FOR AND CONSENTS TO
DISCLOSURE.
(a) In General.--Subsection (c) of section 6103 (relating
to disclosure of returns and return information to designee
of taxpayer) is amended by adding at the end the following
new paragraphs:
``(2) Requirements for valid requests and consents.--A
request for or consent to disclosure under paragraph (1)
shall only be valid for purposes of this section or sections
7213, 7213A, or 7431 if--
``(A) at the time of execution, such request or consent
designates a recipient of such disclosure and is dated, and
``(B) at the time such request or consent is submitted to
the Secretary, the submitter of such request or consent
certifies, under penalty of perjury, that such request or
consent complied with subparagraph (A).
``(3) Restrictions on persons obtaining information.--Any
person shall, as a condition for receiving return or return
information under paragraph (1)--
``(A) ensure that such return and return information is
kept confidential,
``(B) use such return and return information only for the
purpose for which it was requested, and
``(C) not disclose such return and return information
except to accomplish the purpose for which it was requested,
unless a separate consent from the taxpayer is obtained.
``(4) Requirements for form prescribed by secretary.--For
purposes of this subsection, the Secretary shall prescribe a
form for requests and consents which shall--
``(A) contain a warning, prominently displayed, informing
the taxpayer that the form should not be signed unless it is
completed,
``(B) state that if the taxpayer believes there is an
attempt to coerce him to sign an incomplete or blank form,
the taxpayer should report the matter to the Treasury
Inspector General for Tax Administration, and
``(C) contain the address and telephone number of the
Treasury Inspector General for Tax Administration.''.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Treasury Inspector General for Tax
Administration shall submit a report to the Congress on
compliance with the designation and certification
requirements applicable to requests for or consent to
disclosure of returns and return information under section
6103(c) of the Internal Revenue Code of 1986, as amended by
subsection (a). Such report shall--
(1) evaluate (on the basis of random sampling) whether--
[[Page H8932]]
(A) the amendment made by subsection (a) is achieving the
purposes of this section;
(B) requesters and submitters for such disclosure are
continuing to evade the purposes of this section and, if so,
how; and
(C) the sanctions for violations of such requirements are
adequate; and
(2) include such recommendations that the Treasury
Inspector General for Tax Administration considers necessary
or appropriate to better achieve the purposes of this
section.
(c) Conforming Amendment.--Section 6103(c) is amended by
striking ``Taxpayer.--The Secretary'' and inserting
``Taxpayer.--
``(1) In general.--The Secretary''.
(d) Effective Date.--The amendments made by this section
shall apply to requests and consents made after 3 months
after the date of the enactment of this Act.
SEC. 215. NOTICE TO TAXPAYER CONCERNING ADMINISTRATIVE
DETERMINATION OF BROWSING; ANNUAL REPORT.
(a) Notice to Taxpayer.--Subsection (e) of section 7431
(relating to notification of unlawful inspection and
disclosure) is amended by adding at the end the following:
``The Secretary shall also notify such taxpayer if the
Treasury Inspector General for Tax Administration determines
that such taxpayer's return or return information was
inspected or disclosed in violation of any of the provisions
specified in paragraph (1), (2), or (3).''.
(b) Reports.--Subsection (p) of section 6103 (relating to
procedure and recordkeeping), as amended by section 245, is
further amended by adding at the end the following new
paragraph:
``(10) Report on unauthorized disclosure and inspection.--
As part of the report required by paragraph (3)(C) for each
calendar year, the Secretary shall furnish information
regarding the unauthorized disclosure and inspection of
returns and return information, including the number, status,
and results of--
``(A) administrative investigations,
``(B) civil lawsuits brought under section 7431 (including
the amounts for which such lawsuits were settled and the
amounts of damages awarded), and
``(C) criminal prosecutions.''.
(c) Effective Date.--
(1) Notice.--The amendment made by subsection (a) shall
apply to determinations made after the date of the enactment
of this Act.
(2) Reports.--The amendment made by subsection (b) shall
apply to calendar years ending after the date of the
enactment of this Act.
SEC. 216. EXPANDED DISCLOSURE IN EMERGENCY CIRCUMSTANCES.
(a) In General.--Section 6103(i)(3)(B) (relating to danger
of death or physical injury) is amended by striking ``or
State'' and inserting ``, State, or local''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 217. DISCLOSURE TO STATE OFFICIALS OF PROPOSED ACTIONS
RELATED TO SECTION 501(C)(3) ORGANIZATIONS.
(a) In General.--Subsection (c) of section 6104 is amended
by striking paragraph (2) and inserting the following new
paragraphs:
``(2) Disclosure of proposed actions.--
``(A) Specific notifications.--In the case of an
organization to which paragraph (1) applies, the Secretary
may disclose to the appropriate State officer--
``(i) a notice of proposed refusal to recognize such
organization as an organization described in section
501(c)(3) or a notice of proposed revocation of such
organization's recognition as an organization exempt from
taxation,
``(ii) the issuance of a letter of proposed deficiency of
tax imposed under section 507 or chapter 41 or 42, and
``(iii) the names and taxpayer identification numbers of
organizations that have applied for recognition as
organizations described in section 501(c)(3).
``(B) Additional disclosures.--Returns and return
information of organizations with respect to which
information is disclosed under subparagraph (A) may be made
available for inspection by or disclosed to an appropriate
State officer.
``(C) Procedures for disclosure.--Information may be
inspected or disclosed under subparagraph (A) or (B) only--
``(i) upon written request by an appropriate State officer,
and
``(ii) for the purpose of, and only to the extent necessary
in, the administration of State laws regulating such
organizations.
Such information may only be inspected by or disclosed to
representatives of the appropriate State officer designated
as the individuals who are to inspect or to receive the
returns or return information under this paragraph on behalf
of such officer.
``(D) Disclosures other than by request.--The Secretary may
make available for inspection or disclose returns and return
information of an organization to which paragraph (1) applies
to an appropriate State officer of any State if the Secretary
determines that such inspection or disclosure may facilitate
the resolution of State and Federal issues relating to such
organization.
``(3) Use in judicial and administrative proceedings.--
Returns and return information disclosed pursuant to this
subsection may be disclosed in civil administrative and
judicial proceedings pertaining to the enforcement of State
laws regulating such organizations in a manner prescribed by
the Secretary similar to that for tax administration
proceedings under section 6103(h)(4).
``(4) No disclosure if impairment.--Returns and return
information shall not be disclosed under this subsection, or
in any proceeding described in paragraph (3), to the extent
that the Secretary determines that such disclosure would
seriously impair Federal tax administration.
``(5) Definitions.--For purposes of this subsection--
``(A) Return and return information.--The terms `return'
and `return information' have the respective meanings given
to such terms by section 6103(b).
``(B) Appropriate state officer.--The term `appropriate
State officer' means--
``(i) the State attorney general, or
``(ii) the head of any State agency, body, or commission
which is charged under the laws of such State with
responsibility for overseeing organizations of the type
described in section 501(c)(3).''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 6103 is amended--
(A) by inserting ``or section 6104(c)'' after ``this
section'' in paragraph (2), and
(B) by striking ``or subsection (n)'' in paragraph (3) and
inserting ``subsection (n), or section 6104(c)''.
(2) Subparagraph (A) of section 6103(p)(3) is amended by
inserting ``and section 6104(c)'' after ``section'' in the
first sentence.
(3) Paragraph (4) of section 6103(p) is amended--
(A) in the matter preceding subparagraph (A), by striking
``(16) or any other person described in subsection (l)(16)''
and inserting ``(16), any other person described in
subsection (l)(16), or any appropriate State officer (as
defined in section 6104(c))'', and
(B) in subparagraph (F), by striking ``or any other person
described in subsection (l)(16)'' and inserting ``any other
person described in subsection (l)(16), or any appropriate
State officer (as defined in section 6104(c))''.
(4) Paragraph (2) of section 7213(a) is amended by
inserting ``or under section 6104(c)'' after ``6103''.
(5) Paragraph (2) of section 7213A(a) is amended by
inserting ``or 6104(c)'' after ``6103''.
(6) Paragraph (2) of section 7431(a) is amended by
inserting ``(including any disclosure in violation of section
6104(c))'' after ``6103''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act
but shall not apply to requests made before such date.
Subtitle C--Other Provisions
SEC. 221. BETTER MEANS OF COMMUNICATING WITH TAXPAYERS.
Not later than 18 months after the date of the enactment of
this Act, the Treasury Inspector General for Tax
Administration shall submit a report to Congress evaluating
whether technological advances, such as e-mail and facsimile
transmission, permit the use of alternative means for the
Internal Revenue Service to communicate with taxpayers.
SEC. 222. ENROLLED AGENTS.
(a) In General.--Chapter 77 (relating to miscellaneous
provisions) is amended by adding at the end the following new
section:
``SEC. 7527. ENROLLED AGENTS.
``(a) In General.--The Secretary may prescribe such
regulations as may be necessary to regulate the conduct of
enrolled agents in regards to their practice before the
Internal Revenue Service.
``(b) Use of Credentials.--Any enrolled agents properly
licensed to practice as required under rules promulgated
under section (a) herein shall be allowed to use the
credentials or designation as `enrolled agent', `EA', or
`E.A.'.''.
(b) Clerical Amendment.--The table of sections for chapter
77 is amended by adding at the end the following new item:
``Sec. 7525. Enrolled agents.''.
(c) Prior Regulations.--Nothing in the amendments made by
this section shall be construed to have any effect on part 10
of title 31, Code of Federal Regulations, or any other
Federal rule or regulation issued before the date of the
enactment of this Act.
SEC. 223. FINANCIAL MANAGEMENT SERVICE FEES.
Notwithstanding any other provision of law, the Financial
Management Service may charge the Internal Revenue Service,
and the Internal Revenue Service may pay the Financial
Management Service, a fee sufficient to cover the full cost
of implementing a continuous levy program under subsection
(h) of section 6331 of the Internal Revenue Code of 1986. Any
such fee shall be based on actual levies made and shall be
collected by the Financial Management Service by the
retention of a portion of amounts collected by levy pursuant
to that subsection. Amounts received by the Financial
Management Service as fees under that subsection shall be
deposited into the account of the Department of the Treasury
under section 3711(g)(7) of title 31, United States Code, and
shall be collected and accounted for in accordance with the
provisions of that section. The amount credited against the
taxpayer's liability on account of the continuous levy shall
be the amount levied, without reduction for the amount paid
to the Financial Management Service as a fee.
SEC. 224. AMENDMENT TO TREASURY AUCTION REFORMS.
(a) In General.--Clause (i) of section 202(c)(4)(B) of the
Government Securities Act
[[Page H8933]]
Amendments of 1993 (31 U.S.C. 3121 note) is amended by
inserting before the semicolon ``(or, if earlier, at the time
the Secretary releases the minutes of the meeting in
accordance with paragraph (2))''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to meetings held after the date of the enactment
of this Act.
TITLE III--REFORM OF PENALTY AND INTEREST PROVISIONS
SEC. 301. FAILURE TO PAY ESTIMATED TAX PENALTY CONVERTED TO
INTEREST CHARGE ON ACCUMULATED UNPAID BALANCE.
(a) Penalty Moved to Interest Chapter of Code.--The
Internal Revenue Code of 1986 is amended by redesignating
section 6654 as section 6641 and by moving section 6641 (as
so redesignated) from part I of subchapter A of chapter 68 to
the end of subchapter E of chapter 67 (as added by subsection
(e)(1) of this section).
(b) Penalty Converted to Interest Charge.--The heading and
subsections (a) and (b) of section 6641 (as so redesignated)
are amended to read as follows:
``SEC. 6641. INTEREST ON FAILURE BY INDIVIDUAL TO PAY
ESTIMATED INCOME TAX.
``(a) In General.--Interest shall be paid on any
underpayment of estimated tax by an individual for a taxable
year for each day of such underpayment. The amount of such
interest for any day shall be the product of the underpayment
rate established under subsection (b)(2) multiplied by the
amount of the underpayment.
``(b) Amount of Underpayment; Interest Rate.--For purposes
of subsection (a)--
``(1) Amount.--The amount of the underpayment on any day
shall be the excess of--
``(A) the sum of the required installments for the taxable
year the due dates for which are on or before such day, over
``(B) the sum of the amounts (if any) of estimated tax
payments made on or before such day on such required
installments.
``(2) Determination of interest rate.--
``(A) In general.--The underpayment rate with respect to
any day in an installment underpayment period shall be the
underpayment rate established under section 6621 for the
first day of the calendar quarter in which such installment
underpayment period begins.
``(B) Installment underpayment period.--For purposes of
subparagraph (A), the term `installment underpayment period'
means the period beginning on the day after the due date for
a required installment and ending on the due date for the
subsequent required installment (or in the case of the 4th
required installment, the 15th day of the 4th month following
the close of a taxable year).
``(C) Daily rate.--The rate determined under subparagraph
(A) shall be applied on a daily basis and shall be based on
the assumption of 365 days in a calendar year.
``(3) Termination of estimated tax interest.--No day after
the end of the installment underpayment period for the 4th
required installment specified in paragraph (2)(B) for a
taxable year shall be treated as a day of underpayment with
respect to such taxable year.''.
(c) Increase in Safe Harbor Where Tax is Small.--
(1) In general.--Clause (i) of section 6641(d)(1)(B) (as so
redesignated) is amended to read as follows:
``(i) the lesser of--
``(I) 90 percent of the tax shown on the return for the
taxable year (or, if no return is filed, 90 percent of the
tax for such year), or
``(II) the tax shown on the return for the taxable year
(or, if no return is filed, the tax for such year) reduced
(but not below zero) by $2,000, or''.
(2) Conforming amendment.--Subsection (e) of section 6641
(as so redesignated) is amended by striking paragraph (1) and
redesignating paragraphs (2) and (3) as paragraphs (1) and
(2), respectively.
(d) Conforming Amendments.--
(1) Paragraphs (1) and (2) of subsection (e) (as
redesignated by subsection (c)(2)) and subsection (h) of
section 6641 (as so designated) are each amended by striking
``addition to tax'' each place it occurs and inserting
``interest''.
(2) Section 167(g)(5)(D) is amended by striking ``6654''
and inserting ``6641''.
(3) Section 460(b)(1) is amended by striking ``6654'' and
inserting ``6641''.
(4) Section 3510(b) is amended--
(A) by striking ``section 6654'' in paragraph (1) and
inserting ``section 6641'';
(B) by amending paragraph (2)(B) to read as follows:
``(B) no interest would be required to be paid (but for
this section) under 6641 for such taxable year by reason of
the $2,000 amount specified in section
6641(d)(1)(B)(i)(II).'';
(C) by striking ``section 6654(d)(2)'' in paragraph (3) and
inserting ``section 6641(d)(2)''; and
(D) by striking paragraph (4).
(5) Section 6201(b)(1) is amended by striking ``6654'' and
inserting ``6641''.
(6) Section 6601(h) is amended by striking ``6654'' and
inserting ``6641''.
(7) Section 6621(b)(2)(B) is amended by striking ``addition
to tax under section 6654'' and inserting ``interest required
to be paid under section 6641''.
(8) Section 6622(b) is amended--
(A) by striking ``Penalty for'' in the heading; and
(B) by striking ``addition to tax under section 6654 or
6655'' and inserting ``interest required to be paid under
section 6641 or addition to tax under section 6655''.
(9) Section 6658(a) is amended--
(A) by striking ``6654, or 6655'' and inserting ``or 6655,
and no interest shall be required to be paid under section
6641,''; and
(B) by inserting ``or paying interest'' after ``the tax''
in paragraph (2)(B)(ii).
(10) Section 6665(b) is amended--
(A) in the matter preceding paragraph (1) by striking ``,
6654,''; and
(B) in paragraph (2) by striking ``6654 or''.
(11) Section 7203 is amended by striking ``section 6654 or
6655'' and inserting ``section 6655 or interest required to
be paid under section 6641''.
(e) Clerical Amendments.--
(1) Chapter 67 is amended by inserting after subchapter D
the following:
``Subchapter E--Interest on Failure by Individual to Pay Estimated
Income Tax
``Sec. 6641. Interest on failure by individual to pay estimated income
tax.''.
(2) The table of subchapters for chapter 67 is amended by
adding at the end the following new items:
``Subchapter D. Notice requirements.
``Subchapter E. Interest on failure by individual to pay estimated
income tax.''.
(3) The table of sections for part I of subchapter A of
chapter 68 is amended by striking the item relating to
section 6654.
(f) Effective Date.--The amendments made by this section
shall apply to installment payments for taxable years
beginning after December 31, 2002.
SEC. 302. EXCLUSION FROM GROSS INCOME FOR INTEREST ON
OVERPAYMENTS OF INCOME TAX BY INDIVIDUALS.
(a) In General.--Part III of subchapter B of chapter 1
(relating to items specifically excluded from gross income)
is amended by inserting after section 139 the following new
section:
``SEC. 139A. EXCLUSION FROM GROSS INCOME FOR INTEREST ON
OVERPAYMENTS OF INCOME TAX BY INDIVIDUALS.
``(a) In General.--In the case of an individual, gross
income shall not include interest paid under section 6611 on
any overpayment of tax imposed by this subtitle.
``(b) Exception.--Subsection (a) shall not apply in the
case of a failure to claim items resulting in the overpayment
on the original return if the Secretary determines that the
principal purpose of such failure is to take advantage of
subsection (a).
``(c) Special Rule for Determining Modified Adjusted Gross
Income.--For purposes of this title, interest not included in
gross income under subsection (a) shall not be treated as
interest which is exempt from tax for purposes of sections
32(i)(2)(B) and 6012(d) or any computation in which interest
exempt from tax under this title is added to adjusted gross
income.''.
(b) Clerical Amendment.--The table of sections for part III
of subchapter B of chapter 1 is amended by inserting after
the item relating to section 139 the following new item:
``Sec. 139A. Exclusion from gross income for interest on overpayments
of income tax by individuals.''.
(c) Effective Date.--The amendments made by this section
shall apply to interest received in calendar years beginning
after the date of the enactment of this Act.
SEC. 303. ABATEMENT OF INTEREST.
(a) Abatement of Interest With Respect to Erroneous Refund
Check Without Regard to Size of Refund.--Paragraph (2) of
section 6404(e) is amended by striking ``unless--'' and all
that follows and inserting ``unless the taxpayer (or a
related party) has in any way caused such erroneous
refund.''.
(b) Abatement of Interest to Extent Interest is
Attributable to Taxpayer Reliance on Written Statements of
the IRS.--Subsection (f) of section 6404 is amended--
(1) in the subsection heading, by striking ``Penalty or
Addition'' and inserting ``Interest, Penalty, or Addition'';
and
(2) in paragraph (1) and in subparagraph (B) of paragraph
(2), by striking ``penalty or addition'' and inserting
``interest, penalty, or addition''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to interest accruing on or after the
date of the enactment of this Act.
SEC. 304. DEPOSITS MADE TO SUSPEND RUNNING OF INTEREST ON
POTENTIAL UNDERPAYMENTS.
(a) In General.--Subchapter A of chapter 67 (relating to
interest on underpayments) is amended by adding at the end
the following new section:
``SEC. 6603. DEPOSITS MADE TO SUSPEND RUNNING OF INTEREST ON
POTENTIAL UNDERPAYMENTS, ETC.
``(a) Authority To Make Deposits Other Than As Payment of
Tax.--A taxpayer may make a cash deposit with the Secretary
which may be used by the Secretary to pay any tax imposed
under subtitle A or B or chapter 41, 42, 43, or 44 which has
not been assessed at the time of the deposit. Such a deposit
shall be made in such manner as the Secretary shall
prescribe.
``(b) No Interest Imposed.--To the extent that such deposit
is used by the Secretary to pay tax, for purposes of section
6601 (relating to interest on underpayments), the tax shall
be treated as paid when the deposit is made.
``(c) Return of Deposit.--Except in a case where the
Secretary determines that collection of tax is in jeopardy,
the Secretary shall
[[Page H8934]]
return to the taxpayer any amount of the deposit (to the
extent not used for a payment of tax) which the taxpayer
requests in writing.
``(d) Payment of Interest.--
``(1) In general.--For purposes of section 6611 (relating
to interest on overpayments), a deposit which is returned to
a taxpayer shall be treated as a payment of tax for any
period to the extent (and only to the extent) attributable to
a disputable tax for such period. Under regulations
prescribed by the Secretary, rules similar to the rules of
section 6611(b)(2) shall apply.
``(2) Disputable tax.--
``(A) In general.--For purposes of this section, the term
`disputable tax' means the amount of tax specified at the
time of the deposit as the taxpayer's reasonable estimate of
the maximum amount of any tax attributable to disputable
items.
``(B) Safe harbor based on 30-day letter.--In the case of a
taxpayer who has been issued a 30-day letter, the maximum
amount of tax under subparagraph (A) shall not be less than
the amount of the proposed deficiency specified in such
letter.
``(3) Other definitions.--For purposes of paragraph (2)--
``(A) Disputable item.--The term `disputable item' means
any item of income, gain, loss, deduction, or credit if the
taxpayer--
``(i) has a reasonable basis for its treatment of such
item, and
``(ii) reasonably believes that the Secretary also has a
reasonable basis for disallowing the taxpayer's treatment of
such item.
``(B) 30-day letter.--The term `30-day letter' means the
first letter of proposed deficiency which allows the taxpayer
an opportunity for administrative review in the Internal
Revenue Service Office of Appeals.
``(4) Rate of interest.--The rate of interest allowable
under this subsection shall be the Federal short-term rate
determined under section 6621(b), compounded daily.
``(e) Use of Deposits.--
``(1) Payment of tax.--Except as otherwise provided by the
taxpayer, deposits shall be treated as used for the payment
of tax in the order deposited.
``(2) Returns of deposits.--Deposits shall be treated as
returned to the taxpayer on a last-in, first-out basis.''.
(b) Clerical Amendment.--The table of sections for
subchapter A of chapter 67 is amended by adding at the end
the following new item:
``Sec. 6603. Deposits made to suspend running of interest on potential
underpayments, etc.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to deposits made after the date of the enactment of
this Act.
(2) Coordination with deposits made under revenue procedure
84-58.--In the case of an amount held by the Secretary of the
Treasury or his delegate on the date of the enactment of this
Act as a deposit in the nature of a cash bond deposit
pursuant to Revenue Procedure 84-58, the date that the
taxpayer identifies such amount as a deposit made pursuant to
section 6603 of the Internal Revenue Code (as added by this
Act) shall be treated as the date such amount is deposited
for purposes of such section 6603.
SEC. 305. EXPANSION OF INTEREST NETTING FOR INDIVIDUALS.
(a) In General.--Subsection (d) of section 6621 (relating
to elimination of interest on overlapping periods of tax
overpayments and underpayments) is amended by adding at the
end the following: ``Solely for purposes of the preceding
sentence, section 6611(e) shall not apply in the case of an
individual.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to interest accrued after December 31, 2002.
SEC. 306. WAIVER OF CERTAIN PENALTIES FOR FIRST-TIME
UNINTENTIONAL MINOR ERRORS.
(a) In General.--Section 6651 (relating to failure to file
tax return or to pay tax) is amended by adding at the end the
following new subsection:
``(i) Treatment of First-Time Unintentional Minor Errors.--
``(1) In general.--In the case of a return of tax imposed
by subtitle A filed by an individual, the Secretary may waive
an addition to tax under subsection (a) if--
``(A) the individual has a history of compliance with the
requirements of this title,
``(B) it is shown that the failure is due to an
unintentional minor error,
``(C) the penalty would be grossly disproportionate to the
action or expense that would have been needed to avoid the
error, and imposing the penalty would be against equity and
good conscience,
``(D) waiving the penalty would promote compliance with the
requirements of this title and effective tax administration,
and
``(E) the taxpayer took all reasonable steps to remedy the
error promptly after discovering it.
``(2) Exceptions.--Paragraph (1) shall not apply if--
``(A) the Secretary has waived any addition to tax under
this subsection with respect to any prior failure by such
individual,
``(B) the failure is a mathematical or clerical error (as
defined in section 6213(g)(2)), or
``(C) the failure is the lack of a required signature.''.
(b) Effective Date.--The amendment made by this section
shall take effect on January 1, 2003.
SEC. 307. FRIVOLOUS TAX SUBMISSIONS.
(a) Civil Penalties.--Section 6702 is amended to read as
follows:
``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.
``(a) Civil Penalty for Frivolous Tax Returns.--A person
shall pay a penalty of $5,000 if--
``(1) such person files what purports to be a return of a
tax imposed by this title but which--
``(A) does not contain information on which the substantial
correctness of the self-assessment may be judged, or
``(B) contains information that on its face indicates that
the self-assessment is substantially incorrect; and
``(2) the conduct referred to in paragraph (1)--
``(A) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(B) reflects a desire to delay or impede the
administration of Federal tax laws.
``(b) Civil Penalty for Specified Frivolous Submissions.--
``(1) Imposition of Penalty.--Except as provided in
paragraph (3), any person who submits a specified frivolous
submission shall pay a penalty of $5,000.
``(2) Specified frivolous submission.--For purposes of this
section--
``(A) Specified frivolous submission.--The term `specified
frivolous submission' means a specified submission if any
portion of such submission--
``(i) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(ii) reflects a desire to delay or impede the
administration of Federal tax laws.
``(B) Specified submission.--The term `specified
submission' means--
``(i) a request for a hearing under--
``(I) section 6320 (relating to notice and opportunity for
hearing upon filing of notice of lien), or
``(II) section 6330 (relating to notice and opportunity for
hearing before levy), and
``(ii) an application under--
``(I) section 7811 (relating to taxpayer assistance
orders),
``(II) section 6159 (relating to agreements for payment of
tax liability in installments), or
``(III) section 7122 (relating to compromises).
``(3) Opportunity to withdraw submission.--If the Secretary
provides a person with notice that a submission is a
specified frivolous submission and such person withdraws such
submission promptly after such notice, the penalty imposed
under paragraph (1) shall not apply with respect to such
submission.
``(c) Listing of Frivolous Positions.--The Secretary shall
prescribe (and periodically revise) a list of positions which
the Secretary has identified as being frivolous for purposes
of this subsection. The Secretary shall not include in such
list any position that the Secretary determines meets the
requirement of section 6662(d)(2)(B)(ii)(II).
``(d) Reduction of Penalty.--The Secretary may reduce the
amount of any penalty imposed under this section if the
Secretary determines that such reduction would promote
compliance with and administration of the Federal tax laws.
``(e) Penalties in Addition to Other Penalties.--The
penalties imposed by this section shall be in addition to any
other penalty provided by law.''.
(b) Treatment of Frivolous Requests for Hearings Before
Levy.--
(1) Frivolous requests disregarded.--Section 6330 (relating
to notice and opportunity for hearing before levy) is amended
by adding at the end the following new subsection:
``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding
any other provision of this section, if the Secretary
determines that any portion of a request for a hearing under
this section or section 6320 meets the requirement of clause
(i) or (ii) of section 6702(b)(2)(A), then the Secretary may
treat such portion as if it were never submitted and such
portion shall not be subject to any further administrative or
judicial review.''.
(2) Preclusion from raising frivolous issues at hearing.--
Section 6330(c)(4) is amended--
(A) by striking ``(A)'' and inserting ``(A)(i)'';
(B) by striking ``(B)'' and inserting ``(ii)'';
(C) by striking the period at the end of the first sentence
and inserting ``; or''; and
(D) by inserting after subparagraph (A)(ii) (as so
redesignated) the following:
``(B) the issue meets the requirement of clause (i) or (ii)
of section 6702(b)(2)(A).''.
(3) Statement of grounds.--Section 6330(b)(1) is amended by
striking ``under subsection (a)(3)(B)'' and inserting ``in
writing under subsection (a)(3)(B) and states the grounds for
the requested hearing''.
(c) Treatment of Frivolous Requests for Hearings Upon
Filing of Notice of Lien.--Section 6320 is amended--
(1) in subsection (b)(1), by striking ``under subsection
(a)(3)(B)'' and inserting ``in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing'',
and
(2) in subsection (c), by striking ``and (e)'' and
inserting ``(e), and (g)''.
(d) Treatment of Frivolous Applications for Offers-in-
Compromise and Installment Agreements.--Section 7122 is
amended by adding at the end the following new subsection:
[[Page H8935]]
``(e) Frivolous Submissions, Etc.--Notwithstanding any
other provision of this section, if the Secretary determines
that any portion of an application for an offer-in-compromise
or installment agreement submitted under this section or
section 6159 meets the requirement of clause (i) or (ii) of
section 6702(b)(2)(A), then the Secretary may treat such
portion as if it were never submitted and such portion shall
not be subject to any further administrative or judicial
review.''.
(e) Clerical Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by striking the item
relating to section 6702 and inserting the following new
item:
``Sec. 6702. Frivolous tax submissions.''.
(f) Effective Date.--The amendments made by this section
shall apply to submissions made and issues raised after the
date on which the Secretary first prescribes a list under
section 6702(c) of the Internal Revenue Code of 1986, as
amended by subsection (a).
SEC. 308. CLARIFICATION OF APPLICATION OF FEDERAL TAX DEPOSIT
PENALTY.
Nothing in section 6656 of the Internal Revenue Code of
1986 shall be construed to permit the percentage specified in
subsection (b)(1)(A)(iii) thereof to apply other than in a
case where the failure is for more than 15 days.
Discharged From the Committee on Energy and Commerce and Passed
H.R. 5436, to extend the deadline for commencement of construction of
a hydroelectric project in the State of Oregon.
H.R. 5436
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY
COMMISSION PROJECT.
(a) In General.--Notwithstanding the time period specified
in section 13 of the Federal Power Act (16 U.S.C. 806) that
would otherwise apply to the Federal Energy Regulatory
Commission project number 11509, the Commission shall, at the
request of the licensee for the project, and after reasonable
notice, extend the time period during which the licensee is
required to commence the construction of the project for 3
consecutive 2-year periods.
(b) Effective Date.--Subsection (a) takes effect on the
date of the expiration of the extension issued by the
Commission under section 13 of the Federal Power Act (16
U.S.C. 806) for Federal Energy Regulatory Commission project
number 11509.
(c) Reinstatement of Expired License.--If the period
required for commencement of construction of the project
described in subsection (a) has expired prior to the date of
the enactment of this act, the commission shall reinstate the
license effective as of the date of its expiration and the
first extension authorized under subsection (a) shall take
effect on the date of such expiration
Taken From the Speaker's Table and Passed
S. 2712, to authorize economic and democratic development assistance
for Afghanistan and to authorize military assistance for Afghanistan
and certain other foreign countries.
S. 2712
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; DEFINITION.
(a) Short Title.--This Act may be cited as the
``Afghanistan Freedom Support Act of 2002''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents; definition.
TITLE I--ECONOMIC AND DEMOCRATIC DEVELOPMENT ASSISTANCE FOR AFGHANISTAN
Sec. 101. Declaration of policy.
Sec. 102. Purposes of assistance.
Sec. 103. Principles of assistance.
Sec. 104. Authorization of assistance.
Sec. 105. Coordination of assistance.
Sec. 106. Administrative provisions.
Sec. 107. Authorization of appropriations.
TITLE II--MILITARY ASSISTANCE FOR AFGHANISTAN AND CERTAIN OTHER FOREIGN
COUNTRIES AND INTERNATIONAL ORGANIZATIONS
Sec. 201. Support for security during transition in Afghanistan.
Sec. 202. Authorization of assistance.
Sec. 203. Eligible foreign countries and eligible international
organizations.
Sec. 204. Reimbursement for assistance.
Sec. 205. Authority to provide assistance.
Sec. 206. Promoting secure delivery of humanitarian and other
assistance in Afghanistan.
Sec. 207. Sunset.
TITLE III--ADDITIONAL REQUIREMENTS WITH RESPECT TO ASSISTANCE FOR
AFGHANISTAN
Sec. 301. Prohibition on United States involvement in poppy cultivation
or illicit narcotics growth, production, or trafficking.
Sec. 302. Requirement to report by certain United States officials.
Sec. 303. Report by the President.
(c) Definition.--In this Act, the term ``Government of
Afghanistan'' includes--
(1) the government of any political subdivision of
Afghanistan; and
(2) any agency or instrumentality of the Government of
Afghanistan.
TITLE I--ECONOMIC AND DEMOCRATIC DEVELOPMENT ASSISTANCE FOR AFGHANISTAN
SEC. 101. DECLARATION OF POLICY.
Congress makes the following declarations:
(1) The United States and the international community
should support efforts that advance the development of
democratic civil authorities and institutions in Afghanistan
and the establishment of a new broad-based, multi-ethnic,
gender-sensitive, and fully representative government in
Afghanistan.
(2) The United States, in particular, should provide its
expertise to meet immediate humanitarian and refugee needs,
fight the production and flow of illicit narcotics, and aid
in the reconstruction of Afghanistan's agriculture, health
care, civil service, financial, and educational systems.
(3) By promoting peace and security in Afghanistan and
preventing a return to conflict, the United States and the
international community can help ensure that Afghanistan does
not again become a source for international terrorism.
(4) The United States should support the objectives agreed
to on December 5, 2001, in Bonn, Germany, regarding the
provisional arrangement for Afghanistan as it moves toward
the establishment of permanent institutions and, in
particular, should work intensively toward ensuring the
future neutrality of Afghanistan, establishing the principle
that neighboring countries and other countries in the region
do not threaten or interfere in one another's sovereignty,
territorial integrity, or political independence, including
supporting diplomatic initiatives to support this goal.
(5) The special emergency situation in Afghanistan, which
from the perspective of the American people combines
security, humanitarian, political, law enforcement, and
development imperatives, requires that the President should
receive maximum flexibility in designing, coordinating, and
administering efforts with respect to assistance for
Afghanistan and that a temporary special program of such
assistance should be established for this purpose.
(6) To foster stability and democratization and to
effectively eliminate the causes of terrorism, the United
States and the international community should also support
efforts that advance the development of democratic civil
authorities and institutions in the broader Central Asia
region.
SEC. 102. PURPOSES OF ASSISTANCE.
The purposes of assistance authorized by this title are--
(1) to help assure the security of the United States and
the world by reducing or eliminating the likelihood of
violence against United States or allied forces in
Afghanistan and to reduce the chance that Afghanistan will
again be a source of international terrorism;
(2) to support the continued efforts of the United States
and the international community to address the humanitarian
crisis in Afghanistan and among Afghan refugees in
neighboring countries;
(3) to fight the production and flow of illicit narcotics,
to control the flow of precursor chemicals used in the
production of heroin, and to enhance and bolster the
capacities of Afghan governmental authorities to control
poppy cultivation and related activities;
(4) to help achieve a broad-based, multi-ethnic, gender-
sensitive, and fully representative government in Afghanistan
that is freely chosen by the people of Afghanistan and that
respects the human rights of all Afghans, particularly women,
including authorizing assistance for the rehabilitation and
reconstruction of Afghanistan with a particular emphasis on
meeting the educational, health, and sustenance needs of
women and children to better enable their full participation
in Afghan society;
(5) to support the Government of Afghanistan in its
development of the capacity to facilitate, organize, develop,
and implement projects and activities that meet the needs of
the Afghan people;
(6) to foster the participation of civil society in the
establishment of the new Afghan government in order to
achieve a broad-based, multiethnic, gender-sensitive, fully
representative government freely chosen by the Afghan people,
without prejudice to any decisions which may be freely taken
by the Afghan people about the precise form in which their
government is to be organized in the future;
(7) to support the reconstruction of Afghanistan through,
among other things, programs that create jobs, facilitate
clearance of landmines, and rebuild the agriculture sector,
the health care system, and the educational system of
Afghanistan; and
(8) to include specific resources to the Ministry for
Women's Affairs of Afghanistan to carry out its
responsibilities for legal advocacy, education, vocational
training, and women's health programs.
SEC. 103. PRINCIPLES OF ASSISTANCE.
The following principles should guide the provision of
assistance authorized by this title:
(1) Terrorism and narcotics control.--Assistance should be
designed to reduce the likelihood of harm to United States
and other allied forces in Afghanistan and the region, the
likelihood of additional acts of international terrorism
emanating from Afghanistan, and the cultivation, production,
[[Page H8936]]
trafficking, and use of illicit narcotics in Afghanistan.
(2) Role of women.--Assistance should increase the
participation of women at the national, regional, and local
levels in Afghanistan, wherever feasible, by enhancing the
role of women in decisionmaking processes, as well as by
providing support for programs that aim to expand economic
and educational opportunities and health programs for women
and educational and health programs for girls.
(3) Afghan ownership.--Assistance should build upon Afghan
traditions and practices. The strong tradition of community
responsibility and self-reliance in Afghanistan should be
built upon to increase the capacity of the Afghan people and
institutions to participate in the reconstruction of
Afghanistan.
(4) Stability.--Assistance should encourage the restoration
of security in Afghanistan, including, among other things,
the disarmament, demobilization, and reintegration of
combatants, and the establishment of the rule of law,
including the establishment of a police force and an
effective, independent judiciary.
(5) Coordination.--Assistance should be part of a larger
donor effort for Afghanistan. The magnitude of the
devastation--natural and man-made--to institutions and
infrastructure make it imperative that there be close
coordination and collaboration among donors. The United
States should endeavor to assert its leadership to have the
efforts of international donors help achieve the purposes
established by this title.
SEC. 104. AUTHORIZATION OF ASSISTANCE.
(a) In General.--The President is authorized to provide
assistance for Afghanistan for the following activities:
(1) Urgent humanitarian needs.--To assist in meeting the
urgent humanitarian needs of the people of Afghanistan,
including assistance such as--
(A) emergency food, shelter, and medical assistance;
(B) clean drinking water and sanitation;
(C) preventative health care, including childhood
vaccination, therapeutic feeding, maternal child health
services, and infectious diseases surveillance and treatment;
(D) family tracing and reunification services; and
(E) clearance of landmines.
(2) Repatriation and resettlement of refugees and
internally displaced persons.--To assist refugees and
internally displaced persons as they return to their home
communities in Afghanistan and to support their reintegration
into those communities, including assistance such as--
(A) assistance identified in paragraph (1);
(B) assistance to communities, including those in
neighboring countries, that have taken in large numbers of
refugees in order to rehabilitate or expand social, health,
and educational services that may have suffered as a result
of the influx of large numbers of refugees;
(C) assistance to international organizations and host
governments in maintaining security by screening refugees to
ensure the exclusion of armed combatants, members of foreign
terrorist organizations, and other individuals not eligible
for economic assistance from the United States; and
(D) assistance for voluntary refugee repatriation and
reintegration inside Afghanistan and continued assistance to
those refugees who are unable or unwilling to return, and
humanitarian assistance to internally displaced persons,
including those persons who need assistance to return to
their homes, through the United Nations High Commissioner for
Refugees and other organizations charged with providing such
assistance.
(3) Counternarcotics efforts.--(A) To assist in the
eradication of poppy cultivation, the disruption of heroin
production, and the reduction of the overall supply and
demand for illicit narcotics in Afghanistan and the region,
with particular emphasis on assistance to--
(i) eradicate opium poppy, establish crop substitution
programs, purchase nonopium products from farmers in opium-
growing areas, quick-impact public works programs to divert
labor from narcotics production, develop projects directed
specifically at narcotics production, processing, or
trafficking areas to provide incentives to cooperation in
narcotics suppression activities, and related programs;
(ii) establish or provide assistance to one or more
entities within the Government of Afghanistan, including the
Afghan State High Commission for Drug Control, and to provide
training and equipment for the entities, to help enforce
counternarcotics laws in Afghanistan and limit illicit
narcotics growth, production, and trafficking in Afghanistan;
(iii) train and provide equipment for customs, police, and
other border control entities in Afghanistan and the region
relating to illicit narcotics interdiction and relating to
precursor chemical controls and interdiction to help disrupt
heroin production in Afghanistan and the region;
(iv) continue the annual opium crop survey and strategic
studies on opium crop planting and farming in Afghanistan;
and
(v) reduce demand for illicit narcotics among the people of
Afghanistan, including refugees returning to Afghanistan.
(B) For each of the fiscal years 2002 through 2005,
$15,000,000 of the amount made available to carry out this
title is authorized to be made available for a contribution
to the United Nations Drug Control Program for the purpose of
carrying out activities described in clauses (i) through (v)
of subparagraph (A). Amounts made available under the
preceding sentence are in addition to amounts otherwise
available for such purposes.
(4) Reestablishment of food security, rehabilitation of the
agriculture sector, improvement in health conditions, and the
reconstruction of basic infrastructure.--To assist in
expanding access to markets in Afghanistan, to increase the
availability of food in markets in Afghanistan, to
rehabilitate the agriculture sector in Afghanistan by
creating jobs for former combatants, returning refugees, and
internally displaced persons, to improve health conditions,
and assist in the rebuilding of basic infrastructure in
Afghanistan, including assistance such as--
(A) rehabilitation of the agricultural infrastructure,
including irrigation systems and rural roads;
(B) extension of credit;
(C) provision of critical agricultural inputs, such as
seeds, tools, and fertilizer, and strengthening of seed
multiplication, certification, and distribution systems;
(D) improvement in the quantity and quality of water
available through, among other things, rehabilitation of
existing irrigation systems and the development of local
capacity to manage irrigation systems;
(E) livestock rehabilitation through market development and
other mechanisms to distribute stocks to replace those stocks
lost as a result of conflict or drought;
(F) mine awareness and demining programs and programs to
assist mine victims, war orphans, and widows;
(G) programs relating to infant and young child feeding,
immunizations, vitamin A supplementation, and prevention and
treatment of diarrheal diseases and respiratory infections;
(H) programs to improve maternal and child health and
reduce maternal and child mortality;
(I) programs to improve hygienic and sanitation practices
and for the prevention and treatment of infectious diseases,
such as tuberculosis and malaria;
(J) programs to reconstitute the delivery of health care,
including the reconstruction of health clinics or other basic
health infrastructure, with particular emphasis on health
care for children who are orphans;
(K) programs for housing, rebuilding urban infrastructure,
and supporting basic urban services; and
(L) disarmament, demobilization, and reintegration of armed
combatants into society, particularly child soldiers.
(5) Reestablishment of afghanistan as a viable nation-
state.--(A) To assist in the development of the capacity of
the Government of Afghanistan to meet the needs of the people
of Afghanistan through, among other things, support for the
development and expansion of democratic and market-based
institutions, including assistance such as--
(i) support for international organizations that provide
civil advisers to the Government of Afghanistan;
(ii) support for an educated citizenry through improved
access to basic education, with particular emphasis on basic
education for children who are orphans, with particular
emphasis on basic education for children;
(iii) programs to enable the Government of Afghanistan to
recruit and train teachers, with special focus on the
recruitment and training of female teachers;
(iv) programs to enable the Government of Afghanistan to
develop school curriculum that incorporates relevant
information such as landmine awareness, food security and
agricultural education, human rights awareness, and civic
education;
(v) support for the activities of the Government of
Afghanistan to draft a new constitution, other legal
frameworks, and other initiatives to promote the rule of law
in Afghanistan;
(vi) support to increase the transparency, accountability,
and participatory nature of governmental institutions,
including programs designed to combat corruption and other
programs for the promotion of good governance;
(vii) support for an independent media;
(viii) programs that support the expanded participation of
women and members of all ethnic groups in government at
national, regional, and local levels;
(ix) programs to strengthen civil society organizations
that promote human rights and support human rights
monitoring;
(x) support for national, regional, and local elections and
political party development;
(xi) support for the effective administration of justice at
the national, regional, and local levels, including the
establishment of a responsible and community-based police
force; and
(xii) support for establishment of a central bank and
central budgeting authority.
(B) For each of the fiscal years 2003 through 2005, not
less than $10,000,000 of the amount made available to carry
out this title should be made available for the purposes of
carrying out a traditional Afghan assembly or ``Loya Jirga''
and for support for national, regional, and local elections
and political party development under subparagraph (A)(x).
(6) Market economy.--To support the establishment of a
market economy, the establishment of private financial
institutions, the adoption of policies to promote foreign
[[Page H8937]]
direct investment, the development of a basic
telecommunication infrastructure, and the development of
trade and other commercial links with countries in the region
and with the United States, including policies to--
(A) encourage the return of Afghanistan citizens or
nationals living abroad who have marketable and business-
related skills;
(B) establish financial institutions, including credit
unions, cooperatives, and other entities providing
microenterprise credits and other income-generation programs
for the poor, with particular emphasis on women;
(C) facilitate expanded trade with countries in the region;
(D) promote and foster respect for basic workers' rights
and protections against exploitation of child labor; and
(E) provide financing programs for the reconstruction of
Kabul and other major cities in Afghanistan.
(b) Limitation.--
(1) In general.--Amounts made available to carry out this
title (except amounts made available for assistance under
paragraphs (1) through (3) and subparagraphs (F) through (I)
of paragraph (4) of subsection (a)) may be provided only if
the President first determines and certifies to Congress with
respect to the fiscal year involved that substantial progress
has been made toward adopting a constitution and establishing
a democratically elected government for Afghanistan.
(2) Waiver.--
(A) In general.--The President may waive the application of
paragraph (1) if the President first determines and certifies
to Congress that it is important to the national interest of
the United States to do so.
(B) Contents of certification.--A certification transmitted
to Congress under subparagraph (A) shall include a written
explanation of the basis for the determination of the
President to waive the application of paragraph (1).
SEC. 105. COORDINATION OF ASSISTANCE.
(a) In General.--The President is strongly urged to
designate, within the Department of State, a coordinator who
shall be responsible for--
(1) designing an overall strategy to advance United States
interests in Afghanistan;
(2) ensuring program and policy coordination among agencies
of the United States Government in carrying out the policies
set forth in this title;
(3) pursuing coordination with other countries and
international organizations with respect to assistance to
Afghanistan;
(4) ensuring that United States assistance programs for
Afghanistan are consistent with this title;
(5) ensuring proper management, implementation, and
oversight by agencies responsible for assistance programs for
Afghanistan; and
(6) resolving policy and program disputes among United
States Government agencies with respect to United States
assistance for Afghanistan.
(b) Rank and Status of the Coordinator.--The coordinator
designated under subsection (a) shall have the rank and
status of ambassador.
SEC. 106. ADMINISTRATIVE PROVISIONS.
(a) Applicable Administrative Authorities.--Except to the
extent inconsistent with the provisions of this title, the
administrative authorities under chapters 1 and 2 of part III
of the Foreign Assistance Act of 1961 shall apply to the
provision of assistance under this title to the same extent
and in the same manner as such authorities apply to the
provision of economic assistance under part I of such Act.
(b) Use of the Expertise of Afghan-Americans.--In providing
assistance authorized by this title, the President should--
(1) maximize the use, to the extent feasible, of the
services of Afghan-Americans who have expertise in the areas
for which assistance is authorized by this title; and
(2) in the awarding of contracts and grants to implement
activities authorized under this title, encourage the
participation of such Afghan-Americans (including
organizations employing a significant number of such Afghan-
Americans).
(c) Donations of Manufacturing Equipment; Use of Land Grant
Colleges and Universities.--In providing assistance
authorized by this title, the President, to the maximum
extent practicable, should--
(1) encourage the donation of appropriate excess or
obsolete manufacturing and related equipment by United States
businesses (including small businesses) for the
reconstruction of Afghanistan; and
(2) utilize research conducted by United States land grant
colleges and universities and the technical expertise of
professionals within those institutions, particularly in the
areas of agriculture and rural development.
(d) Administrative Expenses.--Not more than 5 percent of
the amount made available to a Federal department or agency
to carry out this title for a fiscal year may be used by the
department or agency for administrative expenses in
connection with such assistance.
(e) Monitoring.--
(1) Comptroller general.--The Comptroller General shall
monitor the provision of assistance under this title.
(2) Inspector general of usaid.--
(A) In general.--The Inspector General of the United States
Agency for International Development shall conduct audits,
inspections, and other activities, as appropriate, associated
with the expenditure of the funds to carry out this title.
(B) Funding.--Not more than $1,500,000 of the amount made
available to carry out this title for a fiscal year shall be
made available to carry out subparagraph (A).
(f) Congressional Notification Procedures.--Funds made
available to carry out this title may not be obligated until
15 days after notification of the proposed obligation of the
funds has been provided to the congressional committees
specified in section 634A of the Foreign Assistance Act of
1961 in accordance with the procedures applicable to
reprogramming notifications under that section.
SEC. 107. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to
the President to carry out this title $300,000,000 for each
of the fiscal years 2002 through 2004, and $250,000,000 for
fiscal year 2005. Amounts authorized to be appropriated
pursuant to the preceding sentence for fiscal year 2002 are
in addition to amounts otherwise available for assistance for
Afghanistan.
(b) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under subsection (a) are--
(1) authorized to remain available until expended; and
(2) in addition to funds otherwise available for such
purposes, including, with respect to food assistance under
section 104(a)(1), funds available under title II of the
Agricultural Trade Development and Assistance Act of 1954,
the Food for Progress Act of 1985, and section 416(b) of the
Agricultural Act of 1949.
TITLE II--MILITARY ASSISTANCE FOR AFGHANISTAN AND CERTAIN OTHER FOREIGN
COUNTRIES AND INTERNATIONAL ORGANIZATIONS
SEC. 201. SUPPORT FOR SECURITY DURING TRANSITION IN
AFGHANISTAN.
It is the sense of Congress that, during the transition to
a broad-based, multi-ethnic, gender-sensitive, fully
representative government in Afghanistan, the United States
should support--
(1) the development of a civilian-controlled and centrally-
governed standing Afghanistan army that respects human rights
and prohibits the use of children as soldiers or combatants;
(2) the creation and training of a professional civilian
police force that respects human rights; and
(3) a multinational security force in Afghanistan.
SEC. 202. AUTHORIZATION OF ASSISTANCE.
(a) Types of Assistance.--
(1) In general.--(A) To the extent that funds are
appropriated in any fiscal year for the purposes of this Act,
the President may provide, consistent with existing United
States statutes, defense articles, defense services,
counter-narcotics, crime control and police training
services, and other support (including training) to the
Government of Afghanistan.
(B) To the extent that funds are appropriated in any fiscal
year for these purposes, the President may provide,
consistent with existing United States statutes, defense
articles, defense services, and other support (including
training) to eligible foreign countries and eligible
international organizations.
(C) The assistance authorized under subparagraph (B) shall
be used for directly supporting the activities described in
section 203.
(2) Drawdown authority.--The President is authorized to
direct the drawdown of defense articles, defense services,
and military education and training for the Government of
Afghanistan, eligible foreign countries, and eligible
international organizations.
(3) Authority to acquire by contract or otherwise.--The
assistance authorized under paragraphs (1) and (2) and under
Public Law 105-338 may include the supply of defense
articles, defense services, counter-narcotics, crime control
and police training services, other support, and military
education and training that are acquired by contract or
otherwise.
(b) Amount of Assistance.--The aggregate value (as defined
in section 644(m) of the Foreign Assistance Act of 1961) of
assistance provided under subsection (a)(2) may not exceed
$300,000,000, provided that such limitation shall be
increased by any amounts appropriated pursuant to the
authorization of appropriations in section 204(b)(1).
SEC. 203. ELIGIBLE FOREIGN COUNTRIES AND ELIGIBLE
INTERNATIONAL ORGANIZATIONS.
(a) Eligibility for Assistance.--
(1) In general.--Except as provided in paragraph (2), a
foreign country or international organization shall be
eligible to receive assistance under section 202 if such
foreign country or international organization is
participating in or directly supporting United States
military activities authorized under Public Law 107-40 or is
participating in military, peacekeeping, or policing
operations in Afghanistan aimed at restoring or maintaining
peace and security in that country.
(2) Exception.--No country the government of which has been
determined by the
[[Page H8938]]
Secretary of State to have repeatedly provided support for
acts of international terrorism under section 620A of the
Foreign Assistance Act of 1961 (22 U.S.C. 2371), section
6(j)(1) of the Export Administration Act of 1979 (50 U.S.C.
App. 2405(j)(1)), or section 40(d) of the Arms Export Control
Act (22 U.S.C. 2780(d)) shall be eligible to receive
assistance under section 202.
(b) Waiver.--The President may waive the application of
subsection (a)(2) if the President determines that it is
important to the national security interest of the United
States to do so.
SEC. 204. REIMBURSEMENT FOR ASSISTANCE.
(a) In General.--Defense articles, defense services, and
military education and training provided under section
202(a)(2) shall be made available without reimbursement to
the Department of Defense except to the extent that funds are
appropriated pursuant to the authorization of appropriations
in subsection (b)(1).
(b) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the President such sums as may be necessary to reimburse the
applicable appropriation, fund, or account for the value (as
defined in section 644(m) of the Foreign Assistance Act of
1961) of defense articles, defense services, or military
education and training provided under section 202(a)(2).
(2) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under paragraph (1) are
authorized to remain available until expended, and are in
addition to amounts otherwise available for the purposes
described in this title.
SEC. 205. ELIGIBLE FOREIGN COUNTRIES AND ELIGIBLE
INTERNATIONAL ORGANIZATIONS.
(a) Authority.--The President may provide assistance under
this title to any eligible foreign country or eligible
international organization if the President determines that
such assistance is important to the national security
interest of the United States and notifies the Committee on
International Relations of the House of Representatives and
the Committee on Foreign Relations of the Senate of such
determination at least 15 days in advance of providing such
assistance.
(b) Notification.--The report described in subsection (a)
shall be submitted in classified and unclassified form and
shall include information relating to the type and amount of
assistance proposed to be provided and the actions that the
proposed recipient of such assistance has taken or has
committed to take.
SEC. 206. PROMOTING SECURE DELIVERY OF HUMANITARIAN AND OTHER
ASSISTANCE IN AFGHANISTAN.
(a) Findings.--Congress finds the following:
(1) The President has declared his view that the United
States should provide significant assistance to Afghanistan
so that it never again becomes a haven for terrorism.
(2) The delivery of humanitarian and reconstruction
assistance from the international community is necessary for
the safe return of refugees and is critical to the future
stability of Afghanistan.
(3) Enhanced stability in Afghanistan through an improved
security environment is critical to the fostering of the
Afghan Interim Authority and the traditional Afghan assembly
or ``Loya Jirga'' process, which is intended to lead to a
permanent national government in Afghanistan, and also is
essential for the participation of women in Afghan society.
(4) Incidents of violence between armed factions and local
and regional commanders, and serious abuses of human rights,
including attacks on women and ethnic minorities
throughout Afghanistan, create an insecure, volatile, and
unsafe environment in parts of Afghanistan, displacing
thousands of Afghan civilians from their local
communities.
(5) The violence and lawlessness may jeopardize the ``Loya
Jirga'' process, undermine efforts to build a strong central
government, severely impede reconstruction and the delivery
of humanitarian assistance, and increase the likelihood that
parts of Afghanistan will once again become safe havens for
al-Qaida, Taliban forces, and drug traffickers.
(6) The lack of security and lawlessness may also
perpetuate the need for United States Armed Forces in
Afghanistan and threaten the ability of the United States to
meet its military objectives.
(7) The International Security Assistance Force in
Afghanistan, currently led by Turkey, and composed of forces
from other willing countries without the participation of
United States Armed Forces, is deployed only in Kabul and
currently does not have the mandate or the capacity to
provide security to other parts of Afghanistan.
(8) Due to the ongoing military campaign in Afghanistan,
the United States does not contribute troops to the
International Security Assistance Force but has provided
support to other countries that are doing so.
(9) The United States is providing political, financial,
training, and other assistance to the Afghan Interim
Authority as it begins to build a national army and police
force to help provide security throughout Afghanistan, but
this effort is not meeting the immediate security needs of
Afghanistan.
(10) Because of these immediate security needs, the Afghan
Interim Authority, its Chairman, Hamid Karzai, and many
Afghan regional leaders have called for the International
Security Assistance Force, which has successfully brought
stability to Kabul, to be expanded and deployed throughout
the country, and this request has been strongly supported by
a wide range of international humanitarian organizations,
including the International Committee of the Red Cross,
Catholic Relief Services, and Refugees International.
(11)(A) On January 29, 2002, the President stated that
``[w]e will help the new Afghan government provide the
security that is the foundation of peace''.
(B) On March 25, 2002, the Secretary of Defense stated,
with respect to the reconstruction of Afghanistan, that ``the
first thing
. . . you need for anything else to happen, for hospitals to
happen, for roads to happen, for refugees to come back, for
people to be fed and humanitarian workers to move on the
country . . . [y]ou've got to have security''.
(b) Statement of Policy.--It should be the policy of the
United States to support measures to help meet the immediate
security needs of Afghanistan in order to promote safe and
effective delivery of humanitarian and other assistance
throughout Afghanistan, further the rule of law and civil
order, and support the formation of a functioning,
representative Afghan national government.
(c) Preparation of Strategy.--Not later than 45 days after
the date of the enactment of this Act, and every six months
thereafter, the President shall transmit to the Committee on
International Relations and the Committee on Appropriations
of the House of Representatives and the Committee on Foreign
Relations and the Committee on Appropriations of the Senate a
strategy for meeting the immediate and long-term security
needs of Afghanistan in order to promote safe and effective
delivery of humanitarian and other assistance throughout
Afghanistan, further the rule of law and civil order, and
support the formation of a functioning, representative Afghan
national government.
SEC. 207. SUNSET.
The authority of this title shall expire after December 31,
2004.
TITLE III--ADDITIONAL REQUIREMENTS WITH RESPECT TO ASSISTANCE FOR
AFGHANISTAN
SEC. 301. PROHIBITION ON UNITED STATES INVOLVEMENT IN POPPY
CULTIVATION OR ILLICIT NARCOTICS GROWTH,
PRODUCTION, OR TRAFFICKING.
No officer or employee of any Federal department or agency
who is involved in the provision of assistance under this Act
may knowingly encourage or participate in poppy cultivation
or illicit narcotics growth, production, or trafficking in
Afghanistan. No United States military or civilian aircraft
or other United States vehicle that is used with respect to
the provision of assistance under this Act may be used to
facilitate the distribution of poppies or illicit narcotics
in Afghanistan.
SEC. 302. REQUIREMENT TO REPORT BY CERTAIN UNITED STATES
OFFICIALS.
(a) Requirement.--An officer or employee of any Federal
department or agency involved in the provision of assistance
under this Act and having knowledge of facts or circumstances
that reasonably indicate that any agency or instrumentality
of the Government of Afghanistan, or any other individual
(including an individual who exercises civil power by force
over a limited region) or organization in Afghanistan, that
receives assistance under this Act is involved in poppy
cultivation or illicit narcotics growth, production, or
trafficking shall, notwithstanding any memorandum of
understanding or other agreement to the contrary, report such
knowledge or facts to the appropriate official.
(b) Definition.--In this section, the term ``appropriate
official'' means the Attorney General, the Inspector General
of the Federal department or agency involved, or the head of
such department or agency.
SEC. 303. REPORT BY THE PRESIDENT.
Not later than 6 months after the date of the enactment of
this Act, and annually thereafter, the President shall
transmit to Congress a written report on the progress of the
Government of Afghanistan toward the eradication of poppy
cultivation, the disruption of heroin production, and the
reduction of the overall supply and demand for illicit
narcotics in Afghanistan in accordance with the provisions of
this Act.
TAKEN FROM THE SPEAKER'S TABLE AND PASSED
S. 3044, to authorize the Court Services and Offender Supervision
Agency of the District of Columbia to provide for the interstate
supervision of offenders on parole, probation, and supervised release.
S. 3044
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 ``Court Services and Offender
Supervision Agency Interstate Supervision Act of 2002''.
SEC. 2. INTERSTATE SUPERVISION.
Section 11233(b)(2) of the National Capital Revitalization
and Self-Government Improvement Act of 1997 (sec. 24-
133(b)(2), D.C. Official Code) is amended--
(1) by amending subparagraph (G) to read as follows:
``(G) arrange for the supervision of District of Columbia
offenders on parole, probation,
[[Page H8939]]
and supervised release who seek to reside in jurisdictions
outside the District of Columbia;'';
(2) by striking the period at the end of subparagraph (H)
and inserting a semicolon; and
(3) by adding at the end the following new subparagraphs:
``(I) arrange for the supervision of offenders on parole,
probation, and supervised release from jurisdictions outside
the District of Columbia who seek to reside in the District
of Columbia; and
``(J) have the authority to enter into agreements,
including the Interstate Compact for Adult Offender
Supervision, with any State or group of States in accordance
with the Agency's responsibilities under subparagraphs (G)
and (I).''.
TAKEN FROM THE SPEAKER'S TABLE AND PASSED
S. 3156, to provide a grant for the construction of a new community
center in St. Paul, Minnesota, in honor of the late Senator Paul
Wellstone and his beloved wife, Sheila.
S. 3156
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 ``Paul and Sheila Wellstone
Center for Community Building Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Senator Paul Wellstone was a tireless advocate for the
people of Minnesota, particularly for new immigrants and the
economically disadvantaged.
(2) Paul and Sheila Wellstone loved St. Paul, Minnesota,
and often walked the neighborhoods of St. Paul to better
understand the needs of the people.
(3) Neighborhood House was founded in the late 1800's in
St. Paul, Minnesota, by the women of Mount Zion Temple as a
settlement house to help newly arrived Eastern European
Jewish immigrants establish a new life and thrive in their
new community.
(4) Paul and Sheila Wellstone were very committed to
Neighborhood House and its mission to improve the lives of
its residents.
(5) When Senator Wellstone became aware that the
Neighborhood House Community Center was no longer adequate to
meet the needs of the St. Paul community, he suggested that
Neighborhood House request Federal funding to construct a new
facility.
(6) As an honor to Paul and Sheila Wellstone, a Federal
grant shall be awarded to Neighborhood House to be used for
the design and construction of a new community center in St.
Paul, Minnesota, to be known as ``The Paul and Sheila
Wellstone Center for Community Building''.
SEC. 3. CONSTRUCTION GRANT.
(a) Grant Authorized.--The Secretary of Housing and Urban
Development shall award a grant to Neighborhood House of St.
Paul, Minnesota, to finance the construction of a new
community center in St. Paul, Minnesota, to be known as ``The
Paul and Sheila Wellstone Center for Community Building''.
(b) Maximum Amount.--The grant awarded under this section
shall be $10,000,000.
(c) Use of Funds.--Funds awarded under this section shall
only be used for the design and construction of the Paul and
Sheila Wellstone Center for Community Building.
(d) Authorization of Appropriations.--There is authorized
to be appropriated $10,000,000 for fiscal year 2003, which
shall remain available until expended, to carry out this Act.
Ms. McCOLLUM. Mr. Speaker, I rise today in support of legislation (S.
3156) to create a living memorial for Paul and Sheila Wellstone in my
home district of St. Paul. I am pleased that both the House and Senate
were able to agree on such a fitting tribute.
Senator Wellstone was my colleague, but Paul and Sheila were also my
constituents and my friends. Over the years, Paul and I have walked the
streets door knocking and listening to the concerns of Minnesotans,
working together to address the challenges of our communities and
neighborhoods. Paul and Sheila's enthusiasm for public service and
their commitment to Minnesota were unmatched.
Today, I stand with the Minnesota Congressional delegation to pay
tribute to Paul and Sheila with a true living memorial to their lives
of serving the people of Minnesota.
This legislation will authorize the design and construction of a new
community center in St. Paul at the Neighborhood House. The
Neighborhood House has played a long-standing role in building
community values among diverse peoples. Since the 19th century, the
Neighborhood House has supported ethnic and cultural groups through
times of transition or need so that they go beyond mere self-
sufficiency, develop critical workforce skills, and become active
members of our democratic process. From Hmong immigrants to Hispanic
women facing domestic violence, the Neighborhood House provides all
those who come an opportunity to improve the quality of their lives.
The new center to be named after Paul and Sheila Wellstone will host
youth and family programs, immigrant education programs such as English
classes, employment services and workforce development. It will provide
a forum for new citizens to learn and integrate themselves into their
new society and will strengthen Minnesota's richly diverse community.
Paul and Sheila Wellstone were advocates for people from all walks of
life. They were open to all Minnesotans. In the Senate, Paul spoke for
those who had no voice and he worked hard to empower those who needed
help the most. This new center embodies the ideals and principles that
Paul and Sheila lived every day.
I thank all my colleagues in Congress for honoring Paul and Sheila
Wellstone in a way that will continue their work and improve the lives
of Minnesotans for years to come.
Discharged from the Committee on International Relations and Agreed to
H. Res. 604, expressing the sense of the House of Representatives
that the United States should adopt a global strategy to respond to the
current coffee crisis, and for other purposes.
H. Res. 604
Whereas since 1997 the price of coffee has declined nearly
70 percent on the world market and has recently reached its
lowest level in a century;
Whereas the collapse of coffee prices has resulted in a
widespread humanitarian crisis for 25,000,000 coffee growers
and for more than 50 developing countries where coffee is a
critical source of rural employment and foreign exchange
earnings;
Whereas, according to a recent World Bank report, 600,000
permanent and temporary coffee workers in Central America
have been left unemployed in the last two years;
Whereas the World Bank has referred to the coffee crisis as
``the silent Mitch'', equating the impact of record-low
coffee prices upon Central American countries with the damage
done to such countries by Hurricane Mitch in 1998;
Whereas 6 of 14 immigrants who died in the Arizona desert
in May 2001 were small coffee farmers from Veracruz, Mexico;
Whereas The Washington Post, The New York Times, and The
Wall Street Journal report that cultivation of illicit crops
such as coca and opium poppy is increasing in traditional
coffee-growing countries, such as Colombia and Peru, which
have been adversely affected by low international coffee
prices;
Whereas the economies of some of the poorest countries in
the world, particularly those in Africa, are highly dependent
on trade in coffee;
Whereas coffee accounts for approximately 80 percent of
export revenues for Burundi, 54 percent of export revenues
for Ethiopia, 34 percent of export revenues for Uganda, and
31 percent of export revenues for Rwanda;
Whereas, according to the Oxfam International Report
``Mugged: Poverty in your Coffee Cup'', in the Dak Lak
province of Vietnam, one of the lowest-cost coffee producers
in the world, the price farmers receive for their product
covers as little as 60 percent of their costs of production
and the income derived by the worst-off farmers in that
region is categorized as ``pre-starvation'' income;
Whereas on February 1, 2002, the International Coffee
Organization (ICO) passed Resolution 407;
Whereas Resolution 407 calls for exporting member countries
to observe minimum standards for exportable coffee and
provide for the issuance of ICO certificates of origin
according to those standards;
Whereas ICO Resolution 407 calls on importing member
countries to ``make their best endeavors to support the
objectives of the programme'';
Whereas both the Specialty Coffee Association of America
(SCAA) and the National Coffee Association (NCA) support ICO
Resolution 407 and have publicly advocated for the United
States to rejoin the International Coffee Organization;
Whereas on July 24, 2002, the Subcommittee on the Western
Hemisphere of the Committee on International Relations of the
House of Representatives held a hearing on the coffee crisis
in the Western Hemisphere;
Whereas the United States Agency for International
Development (USAID) has already established coffee sector
assistance programs for Colombia, Bolivia, the Dominican
Republic, East Timor, El Salvador, Ethiopia, Guatemala,
Haiti, Honduras, Nicaragua, Panama, Peru, Rwanda, Tanzania,
and Uganda; and
Whereas the report accompanying the Foreign Operations,
Export Financing, and Related Programs Appropriations Bill,
2003 (House Report 107-663), highlights the coffee price
crisis as a global issue and ``urges USAID to focus its rural
development and relief programs on regions severely affected
by the coffee crisis, especially in Colombia'': Now,
therefore, be it
Resolved, That--
(1) it is the sense of the House of Representatives that--
(A) the United States should adopt a global strategy to
respond to the coffee crisis with coordinated activities in
Latin America, Africa, and Asia to address the short-term
humanitarian needs and long-term rural development needs of
countries adversely affected by the collapse of coffee
prices; and
(B) the President should explore measures to support and
complement multilateral efforts to respond to the global
coffee crisis; and
(2) the House of Representatives urges private sector
coffee buyers and roasters to
[[Page H8940]]
work with the United States Government to find a solution to
the crisis which is economically, socially, and
environmentally sustainable for all interested parties, and
that will address the fundamental problem of oversupply in
the world coffee market.
Discharged From the Committee on Government Reform and Agreed to
H. Con. Res. 499, honoring George Rogers Clark.
H. Con. Res. 499
Whereas George Rogers Clark was a colonial frontiersman who
succeeded in protecting western colonists through diplomacy
and advocacy with the colonial government of Virginia;
Whereas George Rogers Clark doubled the size of colonial
America through western exploration and by founding towns in
Kentucky;
Whereas George Rogers Clark was an expert negotiator with
American Indian tribes, securing trade and security for
western colonists;
Whereas George Rogers Clark ensured American control of the
Northwest Territory by leading a small band of soldiers
during the Revolutionary War and successfully capturing
British outposts along the Mississippi and Wabash Rivers;
Whereas George Rogers Clark boldly and courageously led
fewer than 200 soldiers to recapture the British Fort
Sackville at Vincennes, Indiana, in the winter of 1778-1779;
Whereas the soldiers marched across Illinois through
flooded and frozen territory and reached Vincennes on the
evening of February 23, 1779;
Whereas upon surrounding Fort Sackville, George Rogers
Clark was able to give the impression of having a much larger
army convincing the British that they were no match for
Clark's forces;
Whereas on the morning of February 25, 1779, the British
Lieutenant Governor Henry Hamilton surrendered Fort Sackville
to George Rogers Clark and his soldiers;
Whereas this victory foiled British attempts to drive the
Americans out of the region west of the Appalachians and
pulled vital resources from the eastern theater during the
American Revolution;
Whereas George Rogers Clark showed great leadership by
commanding an expedition northward in 1782 to control unrest
caused by British forces in the region;
Whereas George Rogers Clark continued to offer leadership
after the Revolutionary War by serving as an advisor to his
community; and
Whereas the 250th anniversary of George Rogers Clark's
birth is November 19, 2002: Now, therefore, be it
Resolved by the House of Representatives (the Senate
concurring), That Congress honors George Rogers Clark, whose
patriotism and bravery helped to secure American independence
and liberty.
Discharged From the Committee on Government Reform and Agreed to
H. Res. 582, recognizing and supporting the goals and ideals of
``National Runaway Prevention Month''.
H. Res. 582
Whereas the prevalence of runaway and homeless situations
among youth is staggering, with studies suggesting that
between 1,300,000 and 2,800,000 youth live on the streets of
the United States each year;
Whereas running away from home is widespread, with 1 out of
every 7 youth in the United States running away from home
before the age of 18;
Whereas runaway youth most often are youth who have been
expelled from their homes by their families, physically,
sexually, and emotionally abused at home, discharged by State
custodial systems without adequate transition plans,
separated from their parents through death and divorce, too
poor to secure their own basic needs, and ineligible or
unable to access adequate medical or mental health resources;
Whereas effective programs supporting runaway youth and
assisting youth and their families in remaining at home
succeed because of partnerships created among families,
community-based human service agencies, law enforcement
agencies, schools, faith-based organizations, and businesses;
Whereas preventing youth from running away from home and
supporting youth in high-risk situations is a family,
community, and national priority;
Whereas the future well-being of the Nation is dependent on
the opportunities provided for youth and families to acquire
the knowledge, skills, and abilities necessary for youth to
develop into safe, healthy, and productive adults;
Whereas the National Network for Youth and its members
advocate on behalf of runaway and homeless youth and provide
an array of community-based supports that address their
critical needs;
Whereas the National Runaway Switchboard provides crisis
intervention and referrals to reconnect runaway youth to
their families and to link youth to local resources that
provide positive alternatives to running away from home; and
Whereas the National Network for Youth and National Runaway
Switchboard are co-sponsoring National Runaway Prevention
Month, during the month of November, to increase public
awareness of the life circumstances of youth in high-risk
situations and the need for safe, healthy, and productive
alternatives, resources, and supports for youth, families,
and communities: Now, therefore, be it
Resolved, That the House of Representatives recognizes and
supports the goals and ideals of ``National Runaway
Prevention Month''.
Discharged From the Committee on Government Reform and Agreed to
H. Res. 599, congratulating the Anaheim Angels for winning the 2002
World Series.
H. RES. 599
Whereas on October 27, 2002, the Anaheim Angels won the
2002 World Series;
Whereas the Angels captured their first World Series title
in the team's 42-year history;
Whereas the Anaheim Angels defeated the Central Division
champion Minnesota Twins to win the American League
Championship Series;
Whereas the Angels defeated the Eastern Division and
defending American League champion New York Yankees to win
the American League Division Series;
Whereas the Angels won a team-record 110 games (including
99 games in the regular season);
Whereas the Angels' team of skilled players, including Troy
Glaus, Tim Salmon, Scott Spiezio, David Eckstein, Garret
Anderson, Darin Erstad, Adam Kennedy, Bengie Molina, Brad
Fullmer, John Lackey, Troy Percival, Francisco Rodriguez,
Kevin Appier, Jarrod Washburn, Ben Weber, Brendan Donnelly,
Alex Ochoa, Ramon Ortiz, Scott Schoeneweis, Shawn Wooten,
Jose Molina, Chone Figgins, Benji Gil, Orlando Palmeiro, and
Scot Shields, contributed extraordinary performances during
the playoffs and the World Series;
Whereas third baseman Troy Glaus, who batted .385 with 3
home runs and 8 RBI, was named Most Valuable Player of the
2002 World Series;
Whereas Manager Mike Scioscia, who provided strong
leadership and solid coaching for a baseball team that was
dominant in the regular season and in postseason play, was
named American League Manager of the Year;
Whereas Bill Stoneman, General Manager of the Anaheim
Angels, has shown dedication to the Angels franchise,
successfully putting together a team of high-quality, winning
players;
Whereas the Anaheim Angels were founded in 1961 by Gene
Autry, the famous ``Singing Cowboy'' and star of motion
picture and television;
Whereas on the day he became the first country musician to
receive a star on the Hollywood Walk of Fame, Gene Autry
said, ``There's only one day that will be bigger than this
one for me, and that's when we win the World Series'';
Whereas Jackie Autry carries on the spirit of her husband
as Honorary President of the American League, and continues
to be the Angels' most devoted fan;
Whereas great players and managers, including Nolan Ryan,
Gene Mauch, Jim Fregosi, Rod Carew, Don Baylor, and Wally
Joyner, have helped the Angels develop a strong baseball
tradition in their short history, which includes winning
Western Division championships in 1979, 1982, and 1986;
Whereas the Angels fans supported their team with
exceptional enthusiasm and spirit, and introduced the power
of the Rally Monkey to a once-disbelieving array of
opponents; and
Whereas the Angels captivated the Nation and inspired the
pride of all Americans with their historic performance: Now,
therefore, be it
Resolved, That the House of Representatives--
(1) congratulates--
(A) the Anaheim Angels for winning the 2002 Major League
Baseball World Series championship and for their outstanding
performance during the 2002 Major League Baseball season; and
(B) all of the eight Major League Baseball teams that
played in the postseason;
(2) recognizes the achievements of the Angels players,
coaches, and support staff whose hard work, dedication, and
never-say-die spirit proved instrumental in the Angels'
first-ever World Series victory;
(3) commends the San Francisco Giants for a valiant
performance during the World Series and for showing their
strength and skill as a team; and
(4) directs the Clerk of the House of Representatives to
transmit an enrolled copy of this resolution to--
(A) Angels players;
(B) Angels Manager Mike Scioscia;
(C) Angels General Manager Bill Stoneman;
(D) The Walt Disney Company; and
(E) Jackie Autry.
Discharged from Committee on Education and the Workforce and Agreed to
H. Res. 612, honoring the life of Dr. Roberto Cruz.
H. Res. 612
Whereas Dr. Cruz received a bachelor's degree in Spanish
from the Wichita State University, a masters degree in
education from the University of California-Berkeley, and a
doctoral degree in policy, planning, and administration from
the University of California-Berkeley;
Whereas Dr. Cruz was appointed by the Secretary of
Education to a national advisory council that dealt with the
education of language minority students;
[[Page H8941]]
Whereas Dr. Cruz has received many honors from educational
and Hispanic organizations for his support of education for
limited English proficient children, including introduction
into the Hispanic Hall of Fame and the Hispanic Achievement
Award in Education;
Whereas Dr. Cruz had the foresight and courage to address
the lack of educational opportunities for young Hispanic
students coming out of high school by founding the National
Hispanic University in Oakland, California, in 1981, and
serving as its first President;
Whereas Dr. Cruz developed strong partnerships between the
academic and business communities to foster educational
opportunities; and
Whereas on September 4, 2002, Dr. Cruz died after a long
and distinguished career: Now, therefore, be it
Resolved, That the House of Representatives--
(1) recognizes Dr. Roberto Cruz's professionalism and
commitment to education;
(2) honors Dr. Cruz's life; and
(3) extends its condolences to the Cruz family and to the
faculty, staff, and students of the National Hispanic
University on the occasion of his death.
Discharged From Committee on Energy and Commerce, Amended, and Passed
S. 1843, to extend certain hydro-electric licenses in the State of
Alaska.
Strike all after the enacting clause and insert new text:
SECTION 1. STAY AND REINSTATEMENT OF FERC LICENSE NO. 11393.
(a) Upon the request of the licensee for FERC Project No.
11393, the Federal Energy Regulatory Commission shall issue
an order staying the license.
(b) Upon the request of the licensee for FERC Project No.
11393, but not later than 6 years after the date that the
Federal Energy Regulatory Commission receives written notice
that construction of the Swan-Tyee transmission line is
completed, the Federal Energy Regulatory Commission shall
issue an order lifting the stay and make the effective date
of the license the date on which the stay is lifted.
(c) Upon request of the licensee for FERC Project No. 11393
and notwithstanding the time period specified in section 13
of the Federal Power Act for the commencement of
construction, the Commission shall, after reasonable notice
and in accordance with the good faith, due diligence, and
public interest requirements of that section, extend the time
period during which licensee is required to commence the
construction of the project for not more than one 2-year time
period.
Passed, as Amended by the Committee Amendment
H.R. 5504, to provide for the improvement of the safety of child
restraints in passenger motor vehicles, and for other purposes.
SECTION 1. SHORT TITLE.
This Act may be cited as ``Anton's Law''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) It is the policy of the Department of Transportation
that all child occupants of motor vehicles, regardless of
seating position, be appropriately restrained in order to
reduce the incidence of injuries and fatalities resulting
from motor vehicle crashes on the streets, roads, and
highways.
(2) Research has shown that very few children between the
ages of 4 to 8 years old are in the appropriate restraint for
their age when riding in passenger motor vehicles.
(3) Children who have outgrown their child safety seats
should ride in a belt-positioning booster seat until an adult
seat belt fits properly.
(4) Children who were properly restrained when riding in
passenger motor vehicles suffered less severe injuries from
accidents than children not properly restrained.
SEC. 3. IMPROVEMENT OF SAFETY OF CHILD RESTRAINTS IN
PASSENGER MOTOR VEHICLES.
(a) In General.--The Secretary of Transportation (hereafter
referred to as the ``Secretary'') shall initiate a rulemaking
proceeding to establish performance requirements for child
restraints, including booster seats, for the restraint of
children weighing more than 50 pounds.
(b) Elements for Consideration.--In the rulemaking
proceeding required by subsection (a), the Secretary shall--
(1) consider whether to include injury performance criteria
for child restraints, including booster seats and other
products for use in passenger motor vehicles for the
restraint of children weighing more than 50 pounds, under the
requirements established in the rulemaking proceeding;
(2) consider whether to establish performance requirements
for seat belt fit when used with booster seats and other belt
guidance devices;
(3) consider whether to address situations where children
weighing more than 50 pounds only have access to seating
positions with lap belts, such as allowing tethered child
restraints for such children; and
(4) review the definition of the term ``booster seat'' in
Federal motor vehicle safety standard No. 213 under section
571.213 of title 49, Code of Federal Regulation, to determine
if it is sufficiently comprehensive.
(c) Completion.--The Secretary shall complete the
rulemaking proceeding required by subsection (a) not later
than 30 months after the date of the enactment of this Act.
SEC. 4. DEVELOPMENT OF ANTHROPOMORPHIC TEST DEVICE SIMULATING
A 10-YEAR OLD CHILD.
(a) Development and Evaluation.--Not later than 24 months
after the date of the enactment of this Act, the Secretary
shall develop and evaluate an anthropomorphic test device
that simulates a 10-year old child for use in testing child
restraints used in passenger motor vehicles.
(b) Adoption by Rulemaking.--Within 1 year following the
development and evaluation carried out under subsection (a),
the Secretary shall initiate a rulemaking proceeding for the
adoption of an anthropomorphic test device as developed under
subsection (a).
SEC. 5. REQUIREMENTS FOR INSTALLATION OF LAP AND SHOULDER
BELTS.
(a) In General.--Not later than 24 months after the date of
the enactment of this Act, the Secretary shall complete a
rulemaking proceeding to amend Federal motor vehicle safety
standard No. 208 under section 571.208 of title 49, Code of
Federal Regulations, relating to occupant crash protection,
in order to--
(1) require a lap and shoulder belt assembly for each rear
designated seating position in a passenger motor vehicle with
a gross vehicle weight rating of 10,000 pounds or less,
except that if the Secretary determines that installation of
a lap and shoulder belt assembly is not practicable for a
particular designated seating position in a particular type
of passenger motor vehicle, the Secretary may exclude the
designated seating position from the requirement; and
(2) apply that requirement to passenger motor vehicles in
phases in accordance with subsection (b).
(b) Implementation Schedule.--The requirement prescribed
under subsection (a)(1) shall be implemented in phases on a
production year basis beginning with the production year that
begins not later than 12 months after the end of the year in
which the regulations are prescribed under subsection (a).
The final rule shall apply to all passenger motor vehicles
with a gross vehicle weight rating of 10,000 pounds or less
that are manufactured in the third production year of the
implementation phase-in under the schedule.
SEC. 6. EVALUATION OF INTEGRATED CHILD SAFETY SYSTEMS.
(a) Evaluation.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall initiate an
evaluation of integrated or built-in child restraints and
booster seats. The evaluation should include--
(1) the safety of the child restraint and correctness of
fit for the child;
(2) the availability of testing data on the system and
vehicle in which the child restraint will be used;
(3) the compatibility of the child restraint with different
makes and models;
(4) the cost-effectiveness of mass production of the child
restraint for consumers;
(5) the ease of use and relative availability of the child
restraint to children riding in motor vehicles; and
(6) the benefits of built-in seats for improving compliance
with State child occupant restraint laws.
(b) Report.--Not later than 12 months after the date of
enactment of this Act, the Secretary shall transmit to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report of this evaluation.
SEC. 7. DEFINITIONS.
As used in this Act, the following definitions apply:
(1) Child restraint.--The term ``child restraint'' means
any product designed to provide restraint to a child
(including booster seats and other products used with a lap
and shoulder belt assembly) that meets applicable Federal
motor vehicle safety standards prescribed by the National
Highway Traffic Safety Administration.
(2) Production year.--The term ``production year'' means
the 12-month period between September 1 of a year and August
31 of the following year.
(3) Passenger motor vehicle.--The term ``passenger motor
vehicle'' has the meaning given that term in section
405(f)(5) of title 23, United States Code.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated
$5,000,000 to the Secretary of Transportation for--
(1) the evaluation required by Section 6 of this Act; and
(2) research of the nature and causes of injury to children
involved in motor vehicle crashes.
(b) Limitation.--Funds appropriated under subsection (a)
shall not be available for the general administrative
expenses of the Secretary.
Mr. TAUZIN. Mr. Speaker, today we are considering an important and
needed piece of safety legislation, H.R. 5504, the ``Child Safety
Enhancement Act of 2002.'' This bill, introduced by Rep. Shimkus, aims
to protect the ``forgotten child''--those children who are too large
for the child safety seat, but too small for adult seat belts. Make no
mistake about it, this bill will save the lives of innocent children
who are too often the victims of automobile accidents.
This bill will enhance child passenger safety by requiring the
National Highway Traffic Safety Administration (NHTSA) to draft a final
rule establishing performance requirements for child restraints,
including booster seats, for children weighing more than 50 pounds when
riding in passenger vehicles, and the installation of three-point lap
and shoulder belts in rear seats.
The legislation mandates that NHTSA initiate a rulemaking that will
require the installation of the three-point, lap and shoulder belt
[[Page H8942]]
assembly in certain rear seats within one year after enactment. This
installation requirement must be phased in over three production years.
NHTSA may, in accordance with past practice, allow for the earning of
credits for early compliance or compliance beyond the mandated phase-
in, allowing manufacturers to utilize credits in future model years.
This section is intended to maximize occupant safety and it should not
be construed to promote or inhibit liability. This legislation does not
change the law on liability, and it is not intended to be a sword or a
shield in litigation.
Again, I thank Mr. Shimkus for shepherding this good bill through the
Energy and Commerce Committee, and I strongly support its passage.
Passed, as Amended by the Committee Amendment as Further Amended
H.R. 3429, to direct the Secretary of Transportation to make grants
for security improvements to over-the-road bus operations, and for
other purposes.
H.R. 3429
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 ``Over-the-Road Bus Security
and Safety Act of 2001''.
SEC. 2. EMERGENCY OVER-THE-ROAD BUS SECURITY ASSISTANCE.
(a) In General.--The Secretary of Transportation may make
grants to private operators of over-the-road buses for
system-wide security improvements to their operations,
including the reimbursement of extraordinary security-related
costs determined by the Secretary to have been incurred by
such operators since September 11, 2001, and including--
(1) constructing and modifying garages, facilities, or
over-the-road buses to assure their security;
(2) acquiring, upgrading, installing, or operating
equipment, software, or accessorial services for collection,
storage, or exchange of passenger and driver information
through ticketing systems or otherwise, and information links
with government agencies;
(3) training employees in recognizing and responding to
terrorist threats, evacuation procedures, passenger screening
procedures, and baggage inspection;
(4) hiring and training security officers or ``bus
marshals'';
(5) installing cameras and video surveillance equipment on
over-the-road buses and at garages and over-the-road bus
facilities;
(6) creating a program for employee identification or
background investigation;
(7) establishing an emergency communications system linked
to police and emergency personnel; and
(8) implementing and operating passenger screening programs
at terminals and on over-the-road buses.
(b) Federal Share.--The Federal share of the cost for which
any grant is made under this Act shall be 90 percent.
(c) Relationship to Other Laws.--Section 5333 of title 49,
United States Code, shall apply to a grant made under this
Act in the same manner and to the same extent as to a grant
made under chapter 53 of such title.
SEC. 3. PLAN REQUIREMENT.
The Secretary may not make a grant under this Act to a
private operator of over-the-road buses until the operator
has first submitted to the Secretary--
(1) a plan of the operator for making security improvements
described in section 2 and the Secretary has approved the
plan; and
(2) such additional information as the Secretary may
require to ensure accountability for the obligation and
expenditure of amounts made available to the operator under
the grant.
SEC. 4. OVER-THE-ROAD BUS DEFINED.
In this Act, the term ``over-the-road bus'' means a bus
characterized by an elevated passenger deck located over a
baggage compartment.
SEC. 5. FUNDING.
(a) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of Transportation to
carry out this Act $200,000,000 for fiscal year 2002. Such
sums shall remain available until expended.
(b) Imposition and Collection of Passenger Fees.--The
Secretary shall impose and collect from passengers of private
operators of over-the-road buses in fiscal years 2002, 2003,
and 2004 a fee to pay the cost of carrying out this Act. Such
fee shall be $0.25 for each bus trip of a passenger of a
private operator of an over-the-road bus if the cost of the
trip is more than $5. Subject to subsection (c) and
notwithstanding section 9701 of title 31, United States Code,
and the procedural requirements of section 553 of title 5,
United States Code, the Secretary shall impose the fee
through the publication of notice of such fee in the Federal
Register, and begin collection of the fee within 60 days of
the date of enactment of this Act, or as soon as possible
thereafter.
(c) Requirement for Appropriation Before Imposition or
Collection of Fees.--The Secretary shall not impose or
collect a fee under this section before the date on which all
or any portion of the amounts authorized by subsection (a)
are appropriated to carry out this Act.
(d) Fees Payable to Secretary.--All fees imposed and
amounts collected under this section are payable to the
Secretary.
(e) Receipts Credited to Account.--Notwithstanding section
3302 of title 31, United States Code, all fees collected
under this section--
(1) shall be credited to a separate account established in
the Treasury;
(2) shall be available immediately, without further
appropriation, for expenditure but only for making grants
under section 2 in fiscal years 2003 and 2004; and
(3) shall remain available until expended.
(f) Fees Collected by Bus Operators.--A fee imposed under
this section shall be collected by the private operators of
over-the-road buses and shall be remitted by such operators
to the Secretary on the last day of each calendar month. The
amount to be remitted shall be for the calendar month
preceding the calendar month in which the remittance is made.
(g) Information.--The Secretary may require the provision
of such information as the Secretary decides is necessary to
verify that fees have been collected and remitted at the
proper times and in the proper amounts.
(h) Refunds.--The Secretary may refund to a private
operator of an over-the-road bus any fee paid by such
operator by mistake or any amount paid by such operator in
excess of that required.
Further amendment:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Max Cleland Over-the-Road
Bus Security and Safety Act of 2002''.
SEC. 2. EMERGENCY OVER-THE-ROAD BUS SECURITY ASSISTANCE.
(a) In General.--The Secretary of Transportation, acting
through the Administrator of the Federal Motor Carrier Safety
Administration, shall establish a program for making grants
to private operators of over-the-road buses for system-wide
security improvements to their operations, including--
(1) constructing and modifying terminals, garages,
facilities, or over-the-road buses to assure their security;
(2) protecting or isolating the driver;
(3) acquiring, upgrading, installing, or operating
equipment, software, or accessorial services for collection,
storage, or exchange of passenger and driver information
through ticketing systems or otherwise, and information links
with government agencies;
(4) training employees in recognizing and responding to
security threats, evacuation procedures, passenger screening
procedures, and baggage inspection;
(5) hiring and training security officers;
(6) installing cameras and video surveillance equipment on
over-the-road buses and at terminals, garages, and over-the-
road bus facilities;
(7) creating a program for employee identification or
background investigation;
(8) establishing an emergency communications system linked
to law enforcement and emergency personnel; and
(9) implementing and operating passenger screening programs
at terminals and on over-the-road buses.
(b) Reimbursement.--A grant under this Act may be used to
provide reimbursement to private operators of over-the-road
buses for extraordinary security-related costs for
improvements described in paragraphs (1) through (9) of
subsection (a), determined by the Secretary to have been
incurred by such operators since September 11, 2001.
(c) Federal Share.--The Federal share of the cost for which
any grant is made under this Act shall be 90 percent.
(d) Due Consideration.--In making grants under this Act,
the Secretary shall give due consideration to private
operators of over-the-road buses that have taken measures to
enhance bus transportation security from those in effect
before September 11, 2001.
(e) Grant Requirements.--A grant under this Act shall be
subject to all the terms and conditions that a grant is
subject to under section 3038(f) of the Transportation Equity
Act for the 21st Century (49 U.S.C. 5310 note; 112 Stat.
393).
SEC. 3. PLAN REQUIREMENT.
(a) In General.--The Secretary may not make a grant under
this Act to a private operator of over-the-road buses until
the operator has first submitted to the Secretary--
(1) a plan for making security improvements described in
section 2 and the Secretary has approved the plan; and
(2) such additional information as the Secretary may
require to ensure accountability for the obligation and
expenditure of amounts made available to the operator under
the grant.
(b) Coordination.--To the extent that an application for a
grant under this section proposes security improvements
within a specific terminal owned and operated by an entity
other than the applicant, the applicant shall demonstrate to
the satisfaction of the Secretary that the applicant has
coordinated the security improvements for the terminal with
that entity.
SEC. 4. OVER-THE-ROAD BUS DEFINED.
In this Act, the term ``over-the-road bus'' means a bus
characterized by an elevated passenger deck located over a
baggage compartment.
SEC. 5. BUS SECURITY ASSESSMENT.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Transportation shall
transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a preliminary report in accordance with the
requirements of this section.
[[Page H8943]]
(b) Contents of Preliminary Report.--The preliminary report
shall include--
(1) an assessment of the over-the-road bus security grant
program;
(2) an assessment of actions already taken to address
identified security issues by both public and private
entities and recommendations on whether additional safety and
security enforcement actions are needed;
(3) an assessment of whether additional legislation is
needed to provide for the security of Americans traveling on
over-the-road buses;
(4) an assessment of the economic impact that security
upgrades of buses and bus facilities may have on the over-
the-road bus transportation industry and its employees;
(5) an assessment of ongoing research and the need for
additional research on over-the-road bus security, including
engine shut-off mechanisms, chemical and biological weapon
detection technology, and the feasibility of
compartmentalization of the driver; and
(6) an assessment of industry best practices to enhance
security.
(c) Consultation With Industry, Labor, and Other Groups.--
In carrying out this section, the Secretary shall consult
with over-the-road bus management and labor representatives,
public safety and law enforcement officials, and the National
Academy of Sciences.
SEC. 6. FUNDING.
There is authorized to be appropriated to the Secretary of
Transportation to carry out this Act $99,000,000 for fiscal
year 2003. Such sums shall remain available until expended.
Mr. OBERSTAR. Mr. Speaker, I rise in strong support of the amendment
in the nature of a substitute to H.R. 3429, the Max Cleland Over-the-
Road Bus Security and Safety Act of 2002.
I am pleased that the House is moving forward with this important
piece of transportation security legislation. Since reporting the bill
in June, the Committee has worked aggressively to bring the bill to the
Floor. Unfortunately, every Committee effort to advance the bill was
blocked by the Republican Leadership. I am pleased, therefore, with the
Leadership's recent change of heart, even at this late date, to allow
the Committee to advance this important piece of legislation.
The bill has been worked out with our counterparts on the Commerce
Committee in the Other Body and has the strong support of our side of
the aisle. We expect both bodies will clear the bill for the
President's signature.
Since the September 11 terrorist attacks, over-the-road bus drivers
and passengers have been the targets of many serious assaults,
including two assaults killing a total of nine passengers and another
assault injuring 33 passengers. As recently as September 30, 2002, a
bus driver was attacked with a knife while transporting 49 passengers
on a Greyhound bus in California. As a result of the attack, the bus
went off the road and ended up on its side. Although the driver
survived, two of the 49 passengers died.
These violent incidents point to the immediate need to improve
security measures for intercity buses and bus terminals. On August 2,
2002, the President signed into law the FY2002 Supplemental
Appropriations Act (P.L. 107-206). The Act provided $15 million for
grants and contracts to enhance security for intercity bus operations.
However, the Department of Transportation (DOT) has not released a
single penny of these funds. In fact, DOT has not even established an
application process by which entities can apply for these security
funds.
The Administration's failure to make these funds available is
inexcusable. The recent California attack was the fourth attack on an
intercity bus driver in the past year. Any further delay in releasing
these funds risks the lives of thousands of low-income Americans whose
only mode of transportation may be travel by bus. The Administration
must take immediate action to make these funds available.
Mr. Speaker, H.R. 3429, as amended, moves us in the right direction.
It directs the Secretary of Transportation to establish a program for
making grants to private operators of over-the-road buses for system-
wide security improvements to their operations, including constructing
and modifying terminals, garages, or over-the-road buses to assure
their security; protecting the driver; training employees in
recognizing security threats; hiring and training security officers;
installing camera and video surveillance equipment; and establishing an
emergency communications system linked to law enforcement and emergency
personnel.
Since September 11, the intercity bus industry has spent millions on
enhanced security measures. The funds provided by the bill will
supplement measures already undertaken by the industry to increase the
security of the bus system and restore the public's confidence in
traveling by bus.
H.R. 3429, as amended, authorizes $99 million in fiscal year 2003 to
allow the Secretary to make grants to private bus operators for system-
wide security improvements to their operations. The federal share of
the cost of any grant is 90 percent.
I urge my colleagues to support the amendment in the nature of a
substitute to H.R. 3429.
Mr. YOUNG of Alaska. The purposes of this bill are to establish a
direct grant program to help improve the system-wide security of over-
the-road bus operations, and to authorize the Secretary of
Transportation to conduct a security assessment of over-the-road bus
operations.
Over-the-road buses, or motorcoaches, operate in both commuter and
intercity operations. The motorcoach industry, which includes regularly
scheduled point-to-point service and chartered tour operations, carried
more than 774 million passengers in the United States in 2000.
According to the Bureau of Transportation Statistics, the intercity bus
transportation industry serves 5000 locations nationwide, many of which
are rural communities that might not have other modes of intercity
transportation available to the public. Of the 4,000 bus companies
operating in this country, 90 percent operate fewer than 25 buses.
There are worrisome precedents for security breaches on buses. For
example, in the Middle East, terrorists have used buses to cause mass
casualties in a number of crowded cities. In the United States,
Greyhound drivers and passengers were the targets of a least 4 serious
assaults last year, one killing 7 passengers and another injuring 33
passengers, and at least 3 other serious security breaches. No other
major United States transportation mode had as many incidents of
passenger attacks during that period. These incidents occurred in
states throughout the country, including Tennessee, Arizona, Utah,
Oklahoma, Pennsylvania, and Vermont.
In response to the incidents, bus companies have taken a number of
steps to enhance security. These steps include: performing random
screening of passengers and baggage at selected terminals; requiring
ticket identification; providing cell phones to drivers as an interim
emergency communications system; increasing security personnel in
terminals; giving the driver the right to limit access to the first row
of seats; and establishing information and communications systems to
aid and coordinate with law enforcement.
In the 2002 Supplemental Appropriations Act for Further Recovery From
and Response to Terrorist Attacks on the United States (P.L. 107-206),
$15 million was provided of bus security improvements intended to
address the same type of security-related issues as identified in this
bill. This appropriation represents the first installment of funds for
over-the-road bus security and the Mangers encourage the Secretary to
move forward expeditiously to utilize these funds for their intended
purpose.
Section-by-section Analysis
Section 1. Short title.
This Act may be cited as the ``Max Cleland Over-the-Road Bus Security
and Safety Act of 2002''.
Section 2. Emergency over-the-road bus security assistance.
This section directs the Secretary of Transportation, acting through
the Administrator for the Federal Motor Carrier Safety Administration,
to establish a program for making grants to private operators of over-
the-road buses for system-wide security improvements to their
operations. Improvements eligible for grants include: constructing and
modifying terminals, garages, facilities and over-the-road buses to
assure their security; improvements to protect or isolate the driver;
upgrading, purchasing or installing manifest or ticketing systems;
hiring security officers; training employees; installing surveillance
equipment; conducting employee background checks; establishing
emergency communications systems; and implementing passenger screening
programs. Operators may also receive grants for eligible projects
providing reimbursement for extraordinary security-related costs
incurred since September 11, 2001. In making grants, the Secretary is
directed to give due consideration to operators of over-the-road buses
that have already taken measures to enhance security since September
11, 2001.
This section also makes clear that grants under this bill will adhere
to the existing requirements for over-the-road bus operators under
section 3038(f) of the Transportation Equity Act for the 21st Century.
The federal share will be 90 percent of the cost of the improvement
for which any grant is made.
Section 3. Plan requirement.
This section requires that the Secretary approve a plan for security
improvements submitted by an over-the-road bus operator before a grant
may be made. The plan submitted by the operator must comply with the
uses described in Section 2 and include any additional information the
Secretary deems necessary to ensure the accountability for amounts made
available through the grant program.
This section also provides that an applicant for a grant for
improvements at a terminal owned and operated by an entity other than
the applicant must demonstrate to the Secretary that the improvements
have been coordinated with the terminal's owner or operator.
[[Page H8944]]
Section 4. Over-the-road bus defined.
This section defines an over-the-road bus as a bus characterized by
an elevated passenger deck located over a baggage compartment,
consistent with the definition used in the Transportation Equity Act
for the 21st Century (P.L. 105-178).
Section 5. Bus security assessment.
This section directs the Secretary to submit a preliminary report
within 180 days of enactment to the Senate Committee on Commerce,
Science and Transportation and the House Committee on Transportation
and Infrastructure. The report will include assessments of: the grant
program established by the bill; actions taken by public and private
entities to address security issues and recommendations on whether
additional actions; including legislation are needed; the economic
impact of security upgrades on the over-the-road bus industry and its
employees; ongoing and needed research on over-the-road bus security;
and industry best practices to enhance security. In conducting the
assessments, the Secretary is to consult with over-the-road bus
management and labor representatives, public safety and law enforcement
officials, and the National Academy of Sciences.
Section 6. Funding.
This section authorizes $99 million for the grant program for fiscal
year 2003 and provides that such sums shall remain available until
expended.
Mr. YOUNG of Alaska. Mr. Speaker, I move to call up H.R. 3429, as
amended, from the desk, and pass the bill by unanimous consent.
Mr. Speaker, the Max Cleland Over-the-Road Bus Security and Safety
Act, H.R. 3429, will enhance the security of the nation's intercity bus
network by directing the Secretary of Transportation to establish a
grant program for security improvements to over-the-road operations.
The bipartisan legislation was introduced last December, and was
marked up by the full Transportation and Infrastructure Committee on
June 13, 2002. The amended bill before you reflects an agreement
between the House Transportation and Infrastructure Committee and the
Senate Commerce Committee, which reported a companion bill, S. 1739.
The Senate bill was introduced and championed by Senator Max Cleland,
and the bill has been named for him to commemorate his work on this
legislation.
Since last year's terrorist attacks on New York and Washington, D.C.,
the Transportation Committee has re-examined the security of all modes
of transportation. The intercity bus industry transports more than 750
million passengers a year, and is an important element of a intermodal
national transportation system.
Unfortunately, recent terrorist bombings on foreign buses and bus
stations, as well as attacks against bus drivers here in the U.S.,
demonstrate the need for strengthened bus security.
$15 million has already been appropriated for improvements to bus
security in the fiscal year 2002 emergency supplemental, and another
$15 million is pending for fiscal year 2003. It is imperative that we
authorize this grant program now so the Secretary of Transportation
will have direction from Congress on how these funds shall be spent.
H.R. 3429 authorizes a total of $99 million for fiscal year 2003 from
the general fund for discretionary grants to private operators of
intercity bus service for a number of security-related costs,
including: constructing or modifying terminals, bus garages or other
facilities to assure security; protecting or isolating the bus driver;
upgrading, purchasing, or installing passenger ticketing systems;
employee training; hiring security officers; installing cameras and
video surveillance equipment on buses and in facilities; creating
employee identification and background check programs; establishing
emergency communications systems; and implementing passenger screening
programs at terminals and on buses.
These grants can be made for new security improvements, or can be
used to reimburse extraordinary security costs incurred in the wake of
September 11, 2001.
There are number of changes from the House Committee-reported bill,
which can be summarized as follows:
1. The Secretary is directed to establish the grant program through
the Federal Motor Carrier Safety Administration, the regulatory agency
that is responsible for over-the-road bus safety.
2. The total authorization period is one year, rather than three
years, and the total amount authorized is $99 million instead of $200
million. This program will be reauthorized in the larger context of TEA
21 reauthorization next year.
3. A new section requested by the Senate is included that requires an
assessment of the current status of security issues as they relate to
the over-the-road bus industry. This report is due in six months, and
will be helpful to the authorizing Committees as we work on TEA 21
reauthorization.
Mr. Speaker, thank you for allowing this bill to move through in
these last days of the 107th Congress.
Passed, as Amended by the Committee Amendment as Further Amended
H.R. 2458, to enhance the management and promotion of electronic
Government services and processes by establishing a Federal Chief
Information Officer within the Office of Management and Budget, and by
establishing a broad framework of measures that require using Internet-
based information technology to enhance citizen access to Government
information and services, and for other purposes.
H.R. 2458
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``E-
Government Act of 2002''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES
Sec. 101. Management and promotion of electronic government services.
Sec. 102. Conforming amendments.
TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT
SERVICES
Sec. 201. Definitions.
Sec. 202. Federal agency responsibilities.
Sec. 203. Compatibility of executive agency methods for use and
acceptance of electronic signatures.
Sec. 204. Federal Internet portal.
Sec. 205. Federal courts.
Sec. 206. Regulatory agencies.
Sec. 207. Accessibility, usability, and preservation of government
information.
Sec. 208. Privacy provisions.
Sec. 209. Federal information technology workforce development.
Sec. 210. Share-in-savings initiatives.
Sec. 211. Authorization for acquisition of information technology by
State and local governments through Federal supply
schedules.
Sec. 212. Integrated reporting study and pilot projects.
Sec. 213. Community technology centers.
Sec. 214. Enhancing crisis management through advanced information
technology.
Sec. 215. Disparities in access to the Internet.
TITLE III--INFORMATION SECURITY
Sec. 301. Information security.
Sec. 302. Management of information technology.
Sec. 303. National Institute of Standards and Technology.
Sec. 304. Information Security and Privacy Advisory Board.
Sec. 305. Technical and conforming amendments.
Sec. 306. Construction.
TITLE IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES
Sec. 401. Authorization of appropriations.
Sec. 402. Effective dates.
TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY
Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Coordination and oversight of policies.
Sec. 504. Effect on other laws.
Subtitle A--Confidential Information Protection
Sec. 511. Findings and purposes.
Sec. 512. Limitations on use and disclosure of data and information.
Sec. 513. Fines and penalties.
Subtitle B--Statistical Efficiency
Sec. 521. Findings and purposes.
Sec. 522. Designation of statistical agencies.
Sec. 523. Responsibilities of designated statistical agencies.
Sec. 524. Sharing of business data among designated statistical
agencies.
Sec. 525. Limitations on use of business data provided by designated
statistical agencies.
Sec. 526. Conforming amendments.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) The use of computers and the Internet is rapidly
transforming societal interactions and the relationships
among citizens, private businesses, and the Government.
(2) The Federal Government has had uneven success in
applying advances in information technology to enhance
governmental functions and services, achieve more efficient
performance, increase access to Government information, and
increase citizen participation in Government.
(3) Most Internet-based services of the Federal Government
are developed and presented separately, according to the
jurisdictional boundaries of an individual department or
agency, rather than being integrated cooperatively according
to function or topic.
(4) Internet-based Government services involving
interagency cooperation are especially difficult to develop
and promote, in part because of a lack of sufficient funding
mechanisms to support such interagency cooperation.
(5) Electronic Government has its impact through improved
Government performance and outcomes within and across
agencies.
(6) Electronic Government is a critical element in the
management of Government, to be implemented as part of a
management framework
[[Page H8945]]
that also addresses finance, procurement, human capital, and
other challenges to improve the performance of Government.
(7) To take full advantage of the improved Government
performance that can be achieved through the use of Internet-
based technology requires strong leadership, better
organization, improved interagency collaboration, and more
focused oversight of agency compliance with statutes related
to information resource management.
(b) Purposes.--The purposes of this Act are the following:
(1) To provide effective leadership of Federal Government
efforts to develop and promote electronic Government services
and processes by establishing an Administrator of a new
Office of Electronic Government within the Office of
Management and Budget.
(2) To promote use of the Internet and other information
technologies to provide increased opportunities for citizen
participation in Government.
(3) To promote interagency collaboration in providing
electronic Government services, where this collaboration
would improve the service to citizens by integrating related
functions, and in the use of internal electronic Government
processes, where this collaboration would improve the
efficiency and effectiveness of the processes.
(4) To improve the ability of the Government to achieve
agency missions and program performance goals.
(5) To promote the use of the Internet and emerging
technologies within and across Government agencies to provide
citizen-centric Government information and services.
(6) To reduce costs and burdens for businesses and other
Government entities.
(7) To promote better informed decisionmaking by policy
makers.
(8) To promote access to high quality Government
information and services across multiple channels.
(9) To make the Federal Government more transparent and
accountable.
(10) To transform agency operations by utilizing, where
appropriate, best practices from public and private sector
organizations.
(11) To provide enhanced access to Government information
and services in a manner consistent with laws regarding
protection of personal privacy, national security, records
retention, access for persons with disabilities, and other
relevant laws.
TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES
SEC. 101. MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT
SERVICES.
(a) In General.--Title 44, United States Code, is amended
by inserting after chapter 35 the following:
``CHAPTER 36--MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT
SERVICES
``Sec.
``3601. Definitions.
``3602. Office of Electronic Government.
``3603. Chief Information Officers Council.
``3604. E-Government Fund.
``3605. Program to encourage innovative solutions to enhance electronic
Government services and processes.
``3606. E-Government report.
``Sec. 3601. Definitions
``In this chapter, the definitions under section 3502 shall
apply, and the term--
``(1) `Administrator' means the Administrator of the Office
of Electronic Government established under section 3602;
``(2) `Council' means the Chief Information Officers
Council established under section 3603;
``(3) `electronic Government' means the use by the
Government of web-based Internet applications and other
information technologies, combined with processes that
implement these technologies, to--
``(A) enhance the access to and delivery of Government
information and services to the public, other agencies, and
other Government entities; or
``(B) bring about improvements in Government operations
that may include effectiveness, efficiency, service quality,
or transformation;
``(4) `enterprise architecture'--
``(A) means--
``(i) a strategic information asset base, which defines the
mission;
``(ii) the information necessary to perform the mission;
``(iii) the technologies necessary to perform the mission;
and
``(iv) the transitional processes for implementing new
technologies in response to changing mission needs; and
``(B) includes--
``(i) a baseline architecture;
``(ii) a target architecture; and
``(iii) a sequencing plan;
``(5) `Fund' means the E-Government Fund established under
section 3604;
``(6) `interoperability' means the ability of different
operating and software systems, applications, and services to
communicate and exchange data in an accurate, effective, and
consistent manner;
``(7) `integrated service delivery' means the provision of
Internet-based Federal Government information or services
integrated according to function or topic rather than
separated according to the boundaries of agency jurisdiction;
and
``(8) `tribal government' means the governing body of any
Indian tribe, band, nation, or other organized group or
community, including any Alaska Native village or regional or
village corporation as defined in or established pursuant to
the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized as eligible for the special
programs and services provided by the United States to
Indians because of their status as Indians.
``Sec. 3602. Office of Electronic Government
``(a) There is established in the Office of Management and
Budget an Office of Electronic Government.
``(b) There shall be at the head of the Office an
Administrator who shall be appointed by the President.
``(c) The Administrator shall assist the Director in
carrying out--
``(1) all functions under this chapter;
``(2) all of the functions assigned to the Director under
title II of the E-Government Act of 2002; and
``(3) other electronic government initiatives, consistent
with other statutes.
``(d) The Administrator shall assist the Director and the
Deputy Director for Management and work with the
Administrator of the Office of Information and Regulatory
Affairs in setting strategic direction for implementing
electronic Government, under relevant statutes, including--
``(1) chapter 35;
``(2) subtitle III of title 40, United States Code;
``(3) section 552a of title 5 (commonly referred to as the
`Privacy Act');
``(4) the Government Paperwork Elimination Act (44 U.S.C.
3504 note); and
``(5) the Federal Information Security Management Act of
2002.
``(e) The Administrator shall work with the Administrator
of the Office of Information and Regulatory Affairs and with
other offices within the Office of Management and Budget to
oversee implementation of electronic Government under this
chapter, chapter 35, the E-Government Act of 2002, and other
relevant statutes, in a manner consistent with law, relating
to--
``(1) capital planning and investment control for
information technology;
``(2) the development of enterprise architectures;
``(3) information security;
``(4) privacy;
``(5) access to, dissemination of, and preservation of
Government information;
``(6) accessibility of information technology for persons
with disabilities; and
``(7) other areas of electronic Government.
``(f) Subject to requirements of this chapter, the
Administrator shall assist the Director by performing
electronic Government functions as follows:
``(1) Advise the Director on the resources required to
develop and effectively administer electronic Government
initiatives.
``(2) Recommend to the Director changes relating to
Governmentwide strategies and priorities for electronic
Government.
``(3) Provide overall leadership and direction to the
executive branch on electronic Government.
``(4) Promote innovative uses of information technology by
agencies, particularly initiatives involving multiagency
collaboration, through support of pilot projects, research,
experimentation, and the use of innovative technologies.
``(5) Oversee the distribution of funds from, and ensure
appropriate administration and coordination of, the E-
Government Fund established under section 3604.
``(6) Coordinate with the Administrator of General Services
regarding programs undertaken by the General Services
Administration to promote electronic government and the
efficient use of information technologies by agencies.
``(7) Lead the activities of the Chief Information Officers
Council established under section 3603 on behalf of the
Deputy Director for Management, who shall chair the council.
``(8) Assist the Director in establishing policies which
shall set the framework for information technology standards
for the Federal Government under section 11331 of title 40,
to be developed by the National Institute of Standards and
Technology and promulgated by the Secretary of Commerce,
taking into account, if appropriate, recommendations of the
Chief Information Officers Council, experts, and interested
parties from the private and nonprofit sectors and State,
local, and tribal governments, and maximizing the use of
commercial standards as appropriate, including the following:
``(A) Standards and guidelines for interconnectivity and
interoperability as described under section 3504.
``(B) Consistent with the process under section 207(d) of
the E-Government Act of 2002, standards and guidelines for
categorizing Federal Government electronic information to
enable efficient use of technologies, such as through the use
of extensible markup language.
``(C) Standards and guidelines for Federal Government
computer system efficiency and security.
``(9) Sponsor ongoing dialogue that--
``(A) shall be conducted among Federal, State, local, and
tribal government leaders on electronic Government in the
executive, legislative, and judicial branches, as well as
leaders in the private and nonprofit sectors, to encourage
collaboration and enhance understanding of best practices and
innovative approaches in acquiring, using, and managing
information resources;
``(B) is intended to improve the performance of governments
in collaborating on the use of information technology to
improve the delivery of Government information and services;
and
``(C) may include--
``(i) development of innovative models--
``(I) for electronic Government management and Government
information technology contracts; and
``(II) that may be developed through focused discussions or
using separately sponsored research;
``(ii) identification of opportunities for public-private
collaboration in using Internet-based
[[Page H8946]]
technology to increase the efficiency of Government-to-
business transactions;
``(iii) identification of mechanisms for providing
incentives to program managers and other Government employees
to develop and implement innovative uses of information
technologies; and
``(iv) identification of opportunities for public, private,
and intergovernmental collaboration in addressing the
disparities in access to the Internet and information
technology.
``(10) Sponsor activities to engage the general public in
the development and implementation of policies and programs,
particularly activities aimed at fulfilling the goal of using
the most effective citizen-centered strategies and those
activities which engage multiple agencies providing similar
or related information and services.
``(11) Oversee the work of the General Services
Administration and other agencies in developing the
integrated Internet-based system under section 204 of the E-
Government Act of 2002.
``(12) Coordinate with the Administrator for Federal
Procurement Policy to ensure effective implementation of
electronic procurement initiatives.
``(13) Assist Federal agencies, including the General
Services Administration, the Department of Justice, and the
United States Access Board in--
``(A) implementing accessibility standards under section
508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d); and
``(B) ensuring compliance with those standards through the
budget review process and other means.
``(14) Oversee the development of enterprise architectures
within and across agencies.
``(15) Assist the Director and the Deputy Director for
Management in overseeing agency efforts to ensure that
electronic Government activities incorporate adequate, risk-
based, and cost-effective security compatible with business
processes.
``(16) Administer the Office of Electronic Government
established under this section.
``(17) Assist the Director in preparing the E-Government
report established under section 3606.
``(g) The Director shall ensure that the Office of
Management and Budget, including the Office of Electronic
Government, the Office of Information and Regulatory Affairs,
and other relevant offices, have adequate staff and resources
to properly fulfill all functions under the E-Government Act
of 2002.
``Sec. 3603. Chief Information Officers Council
``(a) There is established in the executive branch a Chief
Information Officers Council.
``(b) The members of the Council shall be as follows:
``(1) The Deputy Director for Management of the Office of
Management and Budget, who shall act as chairperson of the
Council.
``(2) The Administrator of the Office of Electronic
Government.
``(3) The Administrator of the Office of Information and
Regulatory Affairs.
``(4) The chief information officer of each agency
described under section 901(b) of title 31.
``(5) The chief information officer of the Central
Intelligence Agency.
``(6) The chief information officer of the Department of
the Army, the Department of the Navy, and the Department of
the Air Force, if chief information officers have been
designated for such departments under section 3506(a)(2)(B).
``(7) Any other officer or employee of the United States
designated by the chairperson.
``(c)(1) The Administrator of the Office of Electronic
Government shall lead the activities of the Council on behalf
of the Deputy Director for Management.
``(2)(A) The Vice Chairman of the Council shall be selected
by the Council from among its members.
``(B) The Vice Chairman shall serve a 1-year term, and may
serve multiple terms.
``(3) The Administrator of General Services shall provide
administrative and other support for the Council.
``(d) The Council is designated the principal interagency
forum for improving agency practices related to the design,
acquisition, development, modernization, use, operation,
sharing, and performance of Federal Government information
resources.
``(e) In performing its duties, the Council shall consult
regularly with representatives of State, local, and tribal
governments.
``(f) The Council shall perform functions that include the
following:
``(1) Develop recommendations for the Director on
Government information resources management policies and
requirements.
``(2) Share experiences, ideas, best practices, and
innovative approaches related to information resources
management.
``(3) Assist the Administrator in the identification,
development, and coordination of multiagency projects and
other innovative initiatives to improve Government
performance through the use of information technology.
``(4) Promote the development and use of common performance
measures for agency information resources management under
this chapter and title II of the E-Government Act of 2002.
``(5) Work as appropriate with the National Institute of
Standards and Technology and the Administrator to develop
recommendations on information technology standards developed
under section 20 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g-3) and promulgated under
section 11331 of title 40, and maximize the use of commercial
standards as appropriate, including the following:
``(A) Standards and guidelines for interconnectivity and
interoperability as described under section 3504.
``(B) Consistent with the process under section 207(d) of
the E-Government Act of 2002, standards and guidelines for
categorizing Federal Government electronic information to
enable efficient use of technologies, such as through the use
of extensible markup language.
``(C) Standards and guidelines for Federal Government
computer system efficiency and security.
``(6) Work with the Office of Personnel Management to
assess and address the hiring, training, classification, and
professional development needs of the Government related to
information resources management.
``(7) Work with the Archivist of the United States to
assess how the Federal Records Act can be addressed
effectively by Federal information resources management
activities.
``Sec. 3604. E-Government Fund
``(a)(1) There is established in the Treasury of the United
States the E-Government Fund.
``(2) The Fund shall be administered by the Administrator
of the General Services Administration to support projects
approved by the Director, assisted by the Administrator of
the Office of Electronic Government, that enable the Federal
Government to expand its ability, through the development and
implementation of innovative uses of the Internet or other
electronic methods, to conduct activities electronically.
``(3) Projects under this subsection may include efforts
to--
``(A) make Federal Government information and services more
readily available to members of the public (including
individuals, businesses, grantees, and State and local
governments);
``(B) make it easier for the public to apply for benefits,
receive services, pursue business opportunities, submit
information, and otherwise conduct transactions with the
Federal Government; and
``(C) enable Federal agencies to take advantage of
information technology in sharing information and conducting
transactions with each other and with State and local
governments.
``(b)(1) The Administrator shall--
``(A) establish procedures for accepting and reviewing
proposals for funding;
``(B) consult with interagency councils, including the
Chief Information Officers Council, the Chief Financial
Officers Council, and other interagency management councils,
in establishing procedures and reviewing proposals; and
``(C) assist the Director in coordinating resources that
agencies receive from the Fund with other resources available
to agencies for similar purposes.
``(2) When reviewing proposals and managing the Fund, the
Administrator shall observe and incorporate the following
procedures:
``(A) A project requiring substantial involvement or
funding from an agency shall be approved by a senior official
with agencywide authority on behalf of the head of the
agency, who shall report directly to the head of the agency.
``(B) Projects shall adhere to fundamental capital planning
and investment control processes.
``(C) Agencies shall identify in their proposals resource
commitments from the agencies involved and how these
resources would be coordinated with support from the Fund,
and include plans for potential continuation of projects
after all funds made available from the Fund are expended.
``(D) After considering the recommendations of the
interagency councils, the Director, assisted by the
Administrator, shall have final authority to determine which
of the candidate projects shall be funded from the Fund.
``(E) Agencies shall assess the results of funded projects.
``(c) In determining which proposals to recommend for
funding, the Administrator--
``(1) shall consider criteria that include whether a
proposal--
``(A) identifies the group to be served, including
citizens, businesses, the Federal Government, or other
governments;
``(B) indicates what service or information the project
will provide that meets needs of groups identified under
subparagraph (A);
``(C) ensures proper security and protects privacy;
``(D) is interagency in scope, including projects
implemented by a primary or single agency that--
``(i) could confer benefits on multiple agencies; and
``(ii) have the support of other agencies; and
``(E) has performance objectives that tie to agency
missions and strategic goals, and interim results that relate
to the objectives; and
``(2) may also rank proposals based on criteria that
include whether a proposal--
``(A) has Governmentwide application or implications;
``(B) has demonstrated support by the public to be served;
``(C) integrates Federal with State, local, or tribal
approaches to service delivery;
``(D) identifies resource commitments from nongovernmental
sectors;
``(E) identifies resource commitments from the agencies
involved;
``(F) uses web-based technologies to achieve objectives;
``(G) identifies records management and records access
strategies;
``(H) supports more effective citizen participation in and
interaction with agency activities that further progress
toward a more citizen-centered Government;
``(I) directly delivers Government information and services
to the public or provides the infrastructure for delivery;
``(J) supports integrated service delivery;
``(K) describes how business processes across agencies will
reflect appropriate transformation simultaneous to technology
implementation; and
``(L) is new or innovative and does not supplant existing
funding streams within agencies.
[[Page H8947]]
``(d) The Fund may be used to fund the integrated Internet-
based system under section 204 of the E-Government Act of
2002.
``(e) None of the funds provided from the Fund may be
transferred to any agency until 15 days after the
Administrator of the General Services Administration has
submitted to the Committees on Appropriations of the Senate
and the House of Representatives, the Committee on
Governmental Affairs of the Senate, the Committee on
Government Reform of the House of Representatives, and the
appropriate authorizing committees of the Senate and the
House of Representatives, a notification and description of
how the funds are to be allocated and how the expenditure
will further the purposes of this chapter.
``(f)(1) The Director shall report annually to Congress on
the operation of the Fund, through the report established
under section 3606.
``(2) The report under paragraph (1) shall describe--
``(A) all projects which the Director has approved for
funding from the Fund; and
``(B) the results that have been achieved to date for these
funded projects.
``(g)(1) There are authorized to be appropriated to the
Fund--
``(A) $45,000,000 for fiscal year 2003;
``(B) $50,000,000 for fiscal year 2004;
``(C) $100,000,000 for fiscal year 2005;
``(D) $150,000,000 for fiscal year 2006; and
``(E) such sums as are necessary for fiscal year 2007.
``(2) Funds appropriated under this subsection shall remain
available until expended.
``Sec. 3605. Program to encourage innovative solutions to
enhance electronic Government services and processes
``(a) Establishment of Program.--The Administrator shall
establish and promote a Governmentwide program to encourage
contractor innovation and excellence in facilitating the
development and enhancement of electronic Government services
and processes.
``(b) Issuance of Announcements Seeking Innovative
Solutions.--Under the program, the Administrator, in
consultation with the Council and the Administrator for
Federal Procurement Policy, shall issue announcements seeking
unique and innovative solutions to facilitate the development
and enhancement of electronic Government services and
processes.
``(c) Multiagency Technical Assistance Team.--(1) The
Administrator, in consultation with the Council and the
Administrator for Federal Procurement Policy, shall convene a
multiagency technical assistance team to assist in screening
proposals submitted to the Administrator to provide unique
and innovative solutions to facilitate the development and
enhancement of electronic Government services and processes.
The team shall be composed of employees of the agencies
represented on the Council who have expertise in scientific
and technical disciplines that would facilitate the
assessment of the feasibility of the proposals.
``(2) The technical assistance team shall--
``(A) assess the feasibility, scientific and technical
merits, and estimated cost of each proposal; and
``(B) submit each proposal, and the assessment of the
proposal, to the Administrator.
``(3) The technical assistance team shall not consider or
evaluate proposals submitted in response to a solicitation
for offers for a pending procurement or for a specific agency
requirement.
``(4) After receiving proposals and assessments from the
technical assistance team, the Administrator shall consider
recommending appropriate proposals for funding under the E-
Government Fund established under section 3604 or, if
appropriate, forward the proposal and the assessment of it to
the executive agency whose mission most coincides with the
subject matter of the proposal.
``Sec. 3606. E-Government report
``(a) Not later than March 1 of each year, the Director
shall submit an E-Government status report to the Committee
on Governmental Affairs of the Senate and the Committee on
Government Reform of the House of Representatives.
``(b) The report under subsection (a) shall contain--
``(1) a summary of the information reported by agencies
under section 202(f) of the E-Government Act of 2002;
``(2) the information required to be reported by section
3604(f); and
``(3) a description of compliance by the Federal Government
with other goals and provisions of the E-Government Act of
2002.''.
(b) Technical and Conforming Amendment.--The table of
chapters for title 44, United States Code, is amended by
inserting after the item relating to chapter 35 the
following:
``36. Management and Promotion of Electronic Government Serv3601''.....
SEC. 102. CONFORMING AMENDMENTS.
(a) Electronic Government and Information Technologies.--
(1) In general.--Chapter 3 of title 40, United States Code,
is amended by inserting after section 304 the following new
section:
``Sec. 305. Electronic Government and information
technologies
``The Administrator of General Services shall consult with
the Administrator of the Office of Electronic Government on
programs undertaken by the General Services Administration to
promote electronic Government and the efficient use of
information technologies by Federal agencies.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 3 of such title is amended by inserting
after the item relating to section 304 the following:
``305. Electronic Government and information technologies.''.
(b) Modification of Deputy Director for Management
Functions.--Section 503(b) of title 31, United States Code,
is amended--
(1) by redesignating paragraphs (5), (6), (7), (8), and
(9), as paragraphs (6), (7), (8), (9), and (10),
respectively; and
(2) by inserting after paragraph (4) the following:
``(5) Chair the Chief Information Officers Council
established under section 3603 of title 44.''.
(c) Office of Electronic Government.--
(1) In general.--Chapter 5 of title 31, United States Code,
is amended by inserting after section 506 the following:
``Sec. 507. Office of Electronic Government
``The Office of Electronic Government, established under
section 3602 of title 44, is an office in the Office of
Management and Budget.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 5 of title 31, United States Code, is
amended by inserting after the item relating to section 506
the following:
``507. Office of Electronic Government.''.
TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT
SERVICES
SEC. 201. DEFINITIONS.
Except as otherwise provided, in this title the definitions
under sections 3502 and 3601 of title 44, United States Code,
shall apply.
SEC. 202. FEDERAL AGENCY RESPONSIBILITIES.
(a) In General.--The head of each agency shall be
responsible for--
(1) complying with the requirements of this Act (including
the amendments made by this Act), the related information
resource management policies and guidance established by the
Director of the Office of Management and Budget, and the
related information technology standards promulgated by the
Secretary of Commerce;
(2) ensuring that the information resource management
policies and guidance established under this Act by the
Director, and the information technology standards
promulgated under this Act by the Secretary of Commerce are
communicated promptly and effectively to all relevant
officials within their agency; and
(3) supporting the efforts of the Director and the
Administrator of the General Services Administration to
develop, maintain, and promote an integrated Internet-based
system of delivering Federal Government information and
services to the public under section 204.
(b) Performance Integration.--
(1) Agencies shall develop performance measures that
demonstrate how electronic government enables progress toward
agency objectives, strategic goals, and statutory mandates.
(2) In measuring performance under this section, agencies
shall rely on existing data collections to the extent
practicable.
(3) Areas of performance measurement that agencies should
consider include--
(A) customer service;
(B) agency productivity; and
(C) adoption of innovative information technology,
including the appropriate use of commercial best practices.
(4) Agencies shall link their performance goals, as
appropriate, to key groups, including citizens, businesses,
and other governments, and to internal Federal Government
operations.
(5) As appropriate, agencies shall work collectively in
linking their performance goals to groups identified under
paragraph (4) and shall use information technology in
delivering Government information and services to those
groups.
(c) Avoiding Diminished Access.--When promulgating policies
and implementing programs regarding the provision of
Government information and services over the Internet, agency
heads shall consider the impact on persons without access to
the Internet, and shall, to the extent practicable--
(1) ensure that the availability of Government information
and services has not been diminished for individuals who lack
access to the Internet; and
(2) pursue alternate modes of delivery that make Government
information and services more accessible to individuals who
do not own computers or lack access to the Internet.
(d) Accessibility to People With Disabilities.--All actions
taken by Federal departments and agencies under this Act
shall be in compliance with section 508 of the Rehabilitation
Act of 1973 (29 U.S.C. 794d).
(e) Sponsored Activities.--Agencies shall sponsor
activities that use information technology to engage the
public in the development and implementation of policies and
programs.
(f) Chief Information Officers.--The Chief Information
Officer of each of the agencies designated under chapter 36
of title 44, United States Code (as added by this Act) shall
be responsible for--
(1) participating in the functions of the Chief Information
Officers Council; and
(2) monitoring the implementation, within their respective
agencies, of information technology standards promulgated
under this Act by the Secretary of Commerce, including common
standards for interconnectivity and interoperability,
categorization of Federal Government electronic information,
and computer system efficiency and security.
(g) E-Government Status Report.--
(1) In general.--Each agency shall compile and submit to
the Director an annual E-Government Status Report on--
(A) the status of the implementation by the agency of
electronic government initiatives;
(B) compliance by the agency with this Act; and
(C) how electronic Government initiatives of the agency
improve performance in delivering programs to constituencies.
[[Page H8948]]
(2) Submission.--Each agency shall submit an annual report
under this subsection--
(A) to the Director at such time and in such manner as the
Director requires;
(B) consistent with related reporting requirements; and
(C) which addresses any section in this title relevant to
that agency.
(h) Use of Technology.--Nothing in this Act supersedes the
responsibility of an agency to use or manage information
technology to deliver Government information and services
that fulfill the statutory mission and programs of the
agency.
(i) National Security Systems.--
(1) Inapplicability.--Except as provided under paragraph
(2), this title does not apply to national security systems
as defined in section 11103 of title 40, United States Code.
(2) Applicability.--This section, section 203, and section
214 do apply to national security systems to the extent
practicable and consistent with law.
SEC. 203. COMPATIBILITY OF EXECUTIVE AGENCY METHODS FOR USE
AND ACCEPTANCE OF ELECTRONIC SIGNATURES.
(a) Purpose.--The purpose of this section is to achieve
interoperable implementation of electronic signatures for
appropriately secure electronic transactions with Government.
(b) Electronic Signatures.--In order to fulfill the
objectives of the Government Paperwork Elimination Act
(Public Law 105-277; 112 Stat. 2681-749 through 2681-751),
each Executive agency (as defined under section 105 of title
5, United States Code) shall ensure that its methods for use
and acceptance of electronic signatures are compatible with
the relevant policies and procedures issued by the Director.
(c) Authority for Electronic Signatures.--The Administrator
of General Services shall support the Director by
establishing a framework to allow efficient interoperability
among Executive agencies when using electronic signatures,
including processing of digital signatures.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the General Services Administration, to
ensure the development and operation of a Federal bridge
certification authority for digital signature compatibility,
and for other activities consistent with this section,
$8,000,000 or such sums as are necessary in fiscal year 2003,
and such sums as are necessary for each fiscal year
thereafter.
SEC. 204. FEDERAL INTERNET PORTAL.
(a) In General.--
(1) Public access.--The Director shall work with the
Administrator of the General Services Administration and
other agencies to maintain and promote an integrated
Internet-based system of providing the public with access to
Government information and services.
(2) Criteria.--To the extent practicable, the integrated
system shall be designed and operated according to the
following criteria:
(A) The provision of Internet-based Government information
and services directed to key groups, including citizens,
business, and other governments, and integrated according to
function or topic rather than separated according to the
boundaries of agency jurisdiction.
(B) An ongoing effort to ensure that Internet-based
Government services relevant to a given citizen activity are
available from a single point.
(C) Access to Federal Government information and services
consolidated, as appropriate, with Internet-based information
and services provided by State, local, and tribal
governments.
(D) Access to Federal Government information held by 1 or
more agencies shall be made available in a manner that
protects privacy, consistent with law.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the General Services Administration
$15,000,000 for the maintenance, improvement, and promotion
of the integrated Internet-based system for fiscal year 2003,
and such sums as are necessary for fiscal years 2004 through
2007.
SEC. 205. FEDERAL COURTS.
(a) Individual Court Websites.--The Chief Justice of the
United States, the chief judge of each circuit and district,
and the chief bankruptcy judge of each district shall
establish with respect to the Supreme Court or the respective
court of appeals, district, or bankruptcy court of a
district, a website that contains the following information
or links to websites with the following information:
(1) Location and contact information for the courthouse,
including the telephone numbers and contact names for the
clerk's office and justices' or judges' chambers.
(2) Local rules and standing or general orders of the
court.
(3) Individual rules, if in existence, of each justice or
judge in that court.
(4) Access to docket information for each case.
(5) Access to the substance of all written opinions issued
by the court, regardless of whether such opinions are to be
published in the official court reporter, in a text
searchable format.
(6) Access to all documents filed with the courthouse in
electronic form, described under subsection (c).
(7) Any other information (including forms in a format that
can be downloaded) that the court determines useful to the
public.
(b) Maintenance of Data Online.--
(1) Update of information.--The information and rules on
each website shall be updated regularly and kept reasonably
current.
(2) Closed cases.--Electronic files and docket information
for cases closed for more than 1 year are not required to be
made available online, except all written opinions with a
date of issuance after the effective date of this section
shall remain available online.
(c) Electronic Filings.--
(1) In general.--Except as provided under paragraph (2),
each court shall make any document that is filed
electronically publicly available online. A court may convert
any document that is filed in paper form to electronic form.
To the extent such conversions are made, all such electronic
versions of the document shall be made available online.
(2) Exceptions.--Documents that are filed that are not
otherwise available to the public, such as documents filed
under seal, shall not be made available online.
(3) Privacy and security concerns.--The Judicial Conference
of the United States may promulgate rules under this
subsection to protect important privacy and security
concerns.
(d) Dockets With Links to Documents.--The Judicial
Conference of the United States shall explore the feasibility
of technology to post online dockets with links allowing all
filings, decisions, and rulings in each case to be obtained
from the docket sheet of that case.
(e) Cost of Providing Electronic Docketing Information.--
Section 303(a) of the Judiciary Appropriations Act, 1992 (28
U.S.C. 1913 note) is amended in the first sentence by
striking ``shall hereafter'' and inserting ``may, only to the
extent necessary,''.
(f) Time Requirements.--Not later than 2 years after the
effective date of this title, the websites under subsection
(a) shall be established, except that access to documents
filed in electronic form shall be established not later than
4 years after that effective date.
(g) Deferral.--
(1) In general.--
(A) Election.--
(i) Notification.--The Chief Justice of the United States,
a chief judge, or chief bankruptcy judge may submit a
notification to the Administrative Office of the United
States Courts to defer compliance with any requirement of
this section with respect to the Supreme Court, a court of
appeals, district, or the bankruptcy court of a district.
(ii) Contents.--A notification submitted under this
subparagraph shall state--
(I) the reasons for the deferral; and
(II) the online methods, if any, or any alternative
methods, such court or district is using to provide greater
public access to information.
(B) Exception.--To the extent that the Supreme Court, a
court of appeals, district, or bankruptcy court of a district
maintains a website under subsection (a), the Supreme Court
or that court of appeals or district shall comply with
subsection (b)(1).
(2) Report.--Not later than 1 year after the effective date
of this title, and every year thereafter, the Judicial
Conference of the United States shall submit a report to the
Committees on Governmental Affairs and the Judiciary of the
Senate and the Committees on Government Reform and the
Judiciary of the House of Representatives that--
(A) contains all notifications submitted to the
Administrative Office of the United States Courts under this
subsection; and
(B) summarizes and evaluates all notifications.
SEC. 206. REGULATORY AGENCIES.
(a) Purposes.--The purposes of this section are to--
(1) improve performance in the development and issuance of
agency regulations by using information technology to
increase access, accountability, and transparency; and
(2) enhance public participation in Government by
electronic means, consistent with requirements under
subchapter II of chapter 5 of title 5, United States Code,
(commonly referred to as the ``Administrative Procedures
Act'').
(b) Information Provided by Agencies Online.--To the extent
practicable as determined by the agency in consultation with
the Director, each agency (as defined under section 551 of
title 5, United States Code) shall ensure that a publicly
accessible Federal Government website includes all
information about that agency required to be published in the
Federal Register under paragraphs (1) and (2) of section
552(a) of title 5, United States Code.
(c) Submissions by Electronic Means.--To the extent
practicable, agencies shall accept submissions under section
553(c) of title 5, United States Code, by electronic means.
(d) Electronic Docketing.--
(1) In general.--To the extent practicable, as determined
by the agency in consultation with the Director, agencies
shall ensure that a publicly accessible Federal Government
website contains electronic dockets for rulemakings under
section 553 of title 5, United States Code.
(2) Information available.--Agency electronic dockets shall
make publicly available online to the extent practicable, as
determined by the agency in consultation with the Director--
(A) all submissions under section 553(c) of title 5, United
States Code; and
(B) other materials that by agency rule or practice are
included in the rulemaking docket under section 553(c) of
title 5, United States Code, whether or not submitted
electronically.
(e) Time Limitation.--Agencies shall implement the
requirements of this section consistent with a timetable
established by the Director and reported to Congress in the
first annual report under section 3606 of title 44 (as added
by this Act).
SEC. 207. ACCESSIBILITY, USABILITY, AND PRESERVATION OF
GOVERNMENT INFORMATION.
(a) Purpose.--The purpose of this section is to improve the
methods by which Government information, including
information on the Internet, is organized, preserved, and
made accessible to the public.
(b) Definitions.--In this section, the term--
(1) ``Committee'' means the Interagency Committee on
Government Information established under subsection (c); and
(2) ``directory'' means a taxonomy of subjects linked to
websites that--
[[Page H8949]]
(A) organizes Government information on the Internet
according to subject matter; and
(B) may be created with the participation of human editors.
(c) Interagency Committee.--
(1) Establishment.--Not later than 180 days after the date
of enactment of this title, the Director shall establish the
Interagency Committee on Government Information.
(2) Membership.--The Committee shall be chaired by the
Director or the designee of the Director and--
(A) shall include representatives from--
(i) the National Archives and Records Administration;
(ii) the offices of the Chief Information Officers from
Federal agencies; and
(iii) other relevant officers from the executive branch;
and
(B) may include representatives from the Federal
legislative and judicial branches.
(3) Functions.--The Committee shall--
(A) engage in public consultation to the maximum extent
feasible, including consultation with interested communities
such as public advocacy organizations;
(B) conduct studies and submit recommendations, as provided
under this section, to the Director and Congress; and
(C) share effective practices for access to, dissemination
of, and retention of Federal information.
(4) Termination.--The Committee may be terminated on a date
determined by the Director, except the Committee may not
terminate before the Committee submits all recommendations
required under this section.
(d) Categorizing of Information.--
(1) Committee functions.--Not later than 2 years after the
date of enactment of this Act, the Committee shall submit
recommendations to the Director on--
(A) the adoption of standards, which are open to the
maximum extent feasible, to enable the organization and
categorization of Government information--
(i) in a way that is searchable electronically, including
by searchable identifiers; and
(iii) in ways that are interoperable across agencies;
(B) the definition of categories of Government information
which should be classified under the standards; and
(C) determining priorities and developing schedules for the
initial implementation of the standards by agencies.
(2) Functions of the director.--Not later than 1 year after
the submission of recommendations under paragraph (1), the
Director shall issue policies--
(A) requiring that agencies use standards, which are open
to the maximum extent feasible, to enable the organization
and categorization of Government information--
(i) in a way that is searchable electronically, including
by searchable identifiers;
(ii) in ways that are interoperable across agencies; and
(iii) that are, as appropriate, consistent with the
standards promulgated by the Secretary of Commerce under
section 3602(f)(8) of title 44, United States Code;
(B) defining categories of Government information which
shall be required to be classified under the standards; and
(C) determining priorities and developing schedules for the
initial implementation of the standards by agencies.
(3) Modification of policies.--After the submission of
agency reports under paragraph (4), the Director shall modify
the policies, as needed, in consultation with the Committee
and interested parties.
(4) Agency functions.--Each agency shall report annually to
the Director, in the report established under section 202(g),
on compliance of that agency with the policies issued under
paragraph (2)(A).
(e) Public Access to Electronic Information.--
(1) Committee functions.--Not later than 2 years after the
date of enactment of this Act, the Committee shall submit
recommendations to the Director and the Archivist of the
United States on--
(A) the adoption by agencies of policies and procedures to
ensure that chapters 21, 25, 27, 29, and 31 of title 44,
United States Code, are applied effectively and
comprehensively to Government information on the Internet and
to other electronic records; and
(B) the imposition of timetables for the implementation of
the policies and procedures by agencies.
(2) Functions of the archivist.--Not later than 1 year
after the submission of recommendations by the Committee
under paragraph (1), the Archivist of the United States shall
issue policies--
(A) requiring the adoption by agencies of policies and
procedures to ensure that chapters 21, 25, 27, 29, and 31 of
title 44, United States Code, are applied effectively and
comprehensively to Government information on the Internet and
to other electronic records; and
(B) imposing timetables for the implementation of the
policies, procedures, and technologies by agencies.
(3) Modification of policies.--After the submission of
agency reports under paragraph (4), the Archivist of the
United States shall modify the policies, as needed, in
consultation with the Committee and interested parties.
(4) Agency functions.--Each agency shall report annually to
the Director, in the report established under section 202(g),
on compliance of that agency with the policies issued under
paragraph (2)(A).
(f) Agency Websites.--
(1) Standards for agency websites.--Not later than 2 years
after the effective date of this title, the Director shall
promulgate guidance for agency websites that includes--
(A) requirements that websites include direct links to--
(i) descriptions of the mission and statutory authority of
the agency;
(ii) information made available to the public under
subsections (a)(1) and (b) of section 552 of title 5, United
States Code (commonly referred to as the ``Freedom of
Information Act'');
(iii) information about the organizational structure of the
agency; and
(iv) the strategic plan of the agency developed under
section 306 of title 5, United States Code; and
(B) minimum agency goals to assist public users to navigate
agency websites, including--
(i) speed of retrieval of search results;
(ii) the relevance of the results;
(iii) tools to aggregate and disaggregate data; and
(iv) security protocols to protect information.
(2) Agency requirements.--(A) Not later than 2 years after
the date of enactment of this Act, each agency shall--
(i) consult with the Committee and solicit public comment;
(ii) establish a process for determining which Government
information the agency intends to make available and
accessible to the public on the Internet and by other means;
(iii) develop priorities and schedules for making
Government information available and accessible;
(iv) make such final determinations, priorities, and
schedules available for public comment;
(v) post such final determinations, priorities, and
schedules on the Internet; and
(vi) submit such final determinations, priorities, and
schedules to the Director, in the report established under
section 202(g).
(B) Each agency shall update determinations, priorities,
and schedules of the agency, as needed, after consulting with
the Committee and soliciting public comment, if appropriate.
(3) Public domain directory of public federal government
websites.--
(A) Establishment.--Not later than 2 years after the
effective date of this title, the Director and each agency
shall--
(i) develop and establish a public domain directory of
public Federal Government websites; and
(ii) post the directory on the Internet with a link to the
integrated Internet-based system established under section
204.
(B) Development.--With the assistance of each agency, the
Director shall--
(i) direct the development of the directory through a
collaborative effort, including input from--
(I) agency librarians;
(II) information technology managers;
(III) program managers;
(IV) records managers;
(V) Federal depository librarians; and
(VI) other interested parties; and
(ii) develop a public domain taxonomy of subjects used to
review and categorize public Federal Government websites.
(C) Update.--With the assistance of each agency, the
Administrator of the Office of Electronic Government shall--
(i) update the directory as necessary, but not less than
every 6 months; and
(ii) solicit interested persons for improvements to the
directory.
(g) Access to Federally Funded Research and Development.--
(1) Development and maintenance of governmentwide
repository and website.--
(A) Repository and website.--The Director of the Office of
Management and Budget, in consultation with the Director of
the Office of Science and Technology Policy and other
relevant agencies, shall ensure the development and
maintenance of--
(i) a repository that fully integrates, to the maximum
extent feasible, information about research and development
funded by the Federal Government, and the repository shall--
(I) include information about research and development
funded by the Federal Government, consistent with any
relevant protections for the information under section 552 of
title 5, United States Code, and performed by--
(aa) institutions not a part of the Federal Government,
including State, local, and foreign governments; industrial
firms; educational institutions; not-for-profit
organizations; federally funded research and development
centers; and private individuals; and
(bb) entities of the Federal Government, including research
and development laboratories, centers, and offices; and
(II) integrate information about each separate research and
development task or award, including--
(aa) the dates upon which the task or award is expected to
start and end;
(bb) a brief summary describing the objective and the
scientific and technical focus of the task or award;
(cc) the entity or institution performing the task or award
and its contact information;
(dd) the total amount of Federal funds expected to be
provided to the task or award over its lifetime and the
amount of funds expected to be provided in each fiscal year
in which the work of the task or award is ongoing;
(ee) any restrictions attached to the task or award that
would prevent the sharing with the general public of any or
all of the information required by this subsection, and the
reasons for such restrictions; and
(ff) such other information as may be determined to be
appropriate; and
(ii) 1 or more websites upon which all or part of the
repository of Federal research and development shall be made
available to and searchable by Federal agencies and non-
Federal entities, including the general public, to
facilitate--
(I) the coordination of Federal research and development
activities;
[[Page H8950]]
(II) collaboration among those conducting Federal research
and development;
(III) the transfer of technology among Federal agencies and
between Federal agencies and non-Federal entities; and
(IV) access by policymakers and the public to information
concerning Federal research and development activities.
(B) Oversight.--The Director of the Office of Management
and Budget shall issue any guidance determined necessary to
ensure that agencies provide all information requested under
this subsection.
(2) Agency functions.--Any agency that funds Federal
research and development under this subsection shall provide
the information required to populate the repository in the
manner prescribed by the Director of the Office of Management
and Budget.
(3) Committee functions.--Not later than 18 months after
the date of enactment of this Act, working with the Director
of the Office of Science and Technology Policy, and after
consultation with interested parties, the Committee shall
submit recommendations to the Director on--
(A) policies to improve agency reporting of information for
the repository established under this subsection; and
(B) policies to improve dissemination of the results of
research performed by Federal agencies and federally funded
research and development centers.
(4) Functions of the director.--After submission of
recommendations by the Committee under paragraph (3), the
Director shall report on the recommendations of the Committee
and Director to Congress, in the E-Government report under
section 3606 of title 44 (as added by this Act).
(5) Authorization of appropriations.--There are authorized
to be appropriated for the development, maintenance, and
operation of the Governmentwide repository and website under
this subsection--
(A) $2,000,000 in each of the fiscal years 2003 through
2005; and
(B) such sums as are necessary in each of the fiscal years
2006 and 2007.
SEC. 208. PRIVACY PROVISIONS.
(a) Purpose.--The purpose of this section is to ensure
sufficient protections for the privacy of personal
information as agencies implement citizen-centered electronic
Government.
(b) Privacy Impact Assessments.--
(1) Responsibilities of agencies.--
(A) In general.--An agency shall take actions described
under subparagraph (B) before developing or procuring
information technology that collects, maintains, or
disseminates information that is in an identifiable form.
(B) Agency activities.--To the extent required under
subparagraph (A), each agency shall--
(i) conduct a privacy impact assessment;
(ii) ensure the review of the privacy impact assessment by
the Chief Information Officer, or equivalent official, as
determined by the head of the agency; and
(iii) if practicable, after completion of the review under
clause (ii), make the privacy impact assessment publicly
available through the website of the agency, publication in
the Federal Register, or other means.
(C) Sensitive information.--Subparagraph (B)(iii) may be
modified or waived for security reasons, or to protect
classified, sensitive, or private information contained in an
assessment.
(D) Copy to director.--Agencies shall provide the Director
with a copy of the privacy impact assessment for each system
for which funding is requested.
(2) Contents of a privacy impact assessment.--
(A) In general.--The Director shall issue guidance to
agencies specifying the required contents of a privacy impact
assessment.
(B) Guidance.--The guidance shall--
(i) ensure that a privacy impact assessment is commensurate
with the size of the information system being assessed, the
sensitivity of information that is in an identifiable form in
that system, and the risk of harm from unauthorized release
of that information; and
(ii) require that a privacy impact assessment address--
(I) what information is to be collected;
(II) why the information is being collected;
(III) the intended use of the agency of the information;
(IV) with whom the information will be shared;
(V) what notice or opportunities for consent would be
provided to individuals regarding what information is
collected and how that information is shared;
(VI) how the information will be secured; and
(VII) whether a system of records is being created under
section 552a of title 5, United States Code, (commonly
referred to as the ``Privacy Act'').
(3) Responsibilities of the director.--The Director shall--
(A) develop policies and guidelines for agencies on the
conduct of privacy impact assessments;
(B) oversee the implementation of the privacy impact
assessment process throughout the Government; and
(C) require agencies to conduct privacy impact assessments
of existing information systems or ongoing collections of
information that is in an identifiable form as the Director
determines appropriate.
(c) Privacy Protections on Agency Websites.--
(1) Privacy policies on websites.--
(A) Guidelines for notices.--The Director shall develop
guidance for privacy notices on agency websites used by the
public.
(B) Contents.--The guidance shall require that a privacy
notice address, consistent with section 552a of title 5,
United States Code--
(i) what information is to be collected;
(ii) why the information is being collected;
(iii) the intended use of the agency of the information;
(iv) with whom the information will be shared;
(v) what notice or opportunities for consent would be
provided to individuals regarding what information is
collected and how that information is shared;
(vi) how the information will be secured; and
(vii) the rights of the individual under section 552a of
title 5, United States Code (commonly referred to as the
``Privacy Act''), and other laws relevant to the protection
of the privacy of an individual.
(2) Privacy policies in machine-readable formats.--The
Director shall issue guidance requiring agencies to translate
privacy policies into a standardized machine-readable format.
(d) Definition.--In this section, the term ``identifiable
form'' means any representation of information that permits
the identity of an individual to whom the information applies
to be reasonably inferred by either direct or indirect means.
SEC. 209. FEDERAL INFORMATION TECHNOLOGY WORKFORCE
DEVELOPMENT.
(a) Purpose.--The purpose of this section is to improve the
skills of the Federal workforce in using information
technology to deliver Government information and services.
(b) Workforce Development.--
(1) In general.--In consultation with the Director, the
Chief Information Officers Council, and the Administrator of
General Services, the Director of the Office of Personnel
Management shall--
(A) analyze, on an ongoing basis, the personnel needs of
the Federal Government related to information technology and
information resource management;
(B) oversee the development of curricula, training methods,
and training priorities that correspond to the projected
personnel needs of the Federal Government related to
information technology and information resource management;
and
(C) assess the training of Federal employees in information
technology disciplines, as necessary, in order to ensure that
the information resource management needs of the Federal
Government are addressed.
(2) Authority to detail employees to non-federal
employers.--In carrying out paragraph (1), the Director of
the Office of Personnel Management may provide for a program
under which a Federal employee may be detailed to a non-
Federal employer. The Director of the Office of Personnel
Management shall prescribe regulations for such program,
including the conditions for service and duties as the
Director considers necessary.
(3) Coordination provision.--An assignment described in
section 3703 of title 5, United States Code, shall be made
only in accordance with the program established under
paragraph (2), if any.
(4) Employee participation.--Subject to information
resource management needs and the limitations imposed by
resource needs in other occupational areas, and consistent
with their overall workforce development strategies, agencies
shall encourage employees to participate in occupational
information technology training.
(5) Authorization of Appropriations.--There are authorized
to be appropriated to the Office of Personnel Management for
the implementation of this subsection, $7,000,000 in fiscal
year 2003, and such sums as are necessary for each fiscal
year thereafter.
(c) Information Technology Exchange Program.--
(1) In general.--Subpart B of part III of title 5, United
States Code, is amended by adding at the end the following:
``CHAPTER 37--INFORMATION TECHNOLOGY EXCHANGE PROGRAM
``Sec.
``3701. Definitions.
``3702. General provisions.
``3703. Assignment of employees to private sector organizations.
``3704. Assignment of employees from private sector organizations.
``3705. Application to Office of the Chief Technology Officer of the
District of Columbia.
``3706. Reporting requirement.
``3707. Regulations.
``Sec. 3701. Definitions
``For purposes of this chapter--
``(1) the term `agency' means an Executive agency, but does
not include the General Accounting Office; and
``(2) the term `detail' means--
``(A) the assignment or loan of an employee of an agency to
a private sector organization without a change of position
from the agency that employs the individual, or
``(B) the assignment or loan of an employee of a private
sector organization to an agency without a change of position
from the private sector organization that employs the
individual,
whichever is appropriate in the context in which such term is
used.
``Sec. 3702. General provisions
``(a) Assignment Authority.--On request from or with the
agreement of a private sector organization, and with the
consent of the employee concerned, the head of an agency may
arrange for the assignment of an employee of the agency to a
private sector organization or an employee of a private
sector organization to the agency. An eligible employee is an
individual who--
``(1) works in the field of information technology
management;
[[Page H8951]]
``(2) is considered an exceptional performer by the
individual's current employer; and
``(3) is expected to assume increased information
technology management responsibilities in the future.
An employee of an agency shall be eligible to participate in
this program only if the employee is employed at the GS-11
level or above (or equivalent) and is serving under a career
or career-conditional appointment or an appointment of
equivalent tenure in the excepted service, and applicable
requirements of section 209(b) of the E-Government Act of
2002 are met with respect to the proposed assignment of such
employee.
``(b) Agreements.--Each agency that exercises its authority
under this chapter shall provide for a written agreement
between the agency and the employee concerned regarding the
terms and conditions of the employee's assignment. In the
case of an employee of the agency, the agreement shall--
``(1) require the employee to serve in the civil service,
upon completion of the assignment, for a period equal to the
length of the assignment; and
``(2) provide that, in the event the employee fails to
carry out the agreement (except for good and sufficient
reason, as determined by the head of the agency from which
assigned) the employee shall be liable to the United States
for payment of all expenses of the assignment.
An amount under paragraph (2) shall be treated as a debt due
the United States.
``(c) Termination.--Assignments may be terminated by the
agency or private sector organization concerned for any
reason at any time.
``(d) Duration.--Assignments under this chapter shall be
for a period of between 3 months and 1 year, and may be
extended in 3-month increments for a total of not more than 1
additional year, except that no assignment under this chapter
may commence after the end of the 5-year period beginning on
the date of the enactment of this chapter.
``(e) Assistance.--The Chief Information Officers Council,
by agreement with the Office of Personnel Management, may
assist in the administration of this chapter, including by
maintaining lists of potential candidates for assignment
under this chapter, establishing mentoring relationships for
the benefit of individuals who are given assignments under
this chapter, and publicizing the program.
``(f) Considerations.--In exercising any authority under
this chapter, an agency shall take into consideration--
``(1) the need to ensure that small business concerns are
appropriately represented with respect to the assignments
described in sections 3703 and 3704, respectively; and
``(2) how assignments described in section 3703 might best
be used to help meet the needs of the agency for the training
of employees in information technology management.
``Sec. 3703. Assignment of employees to private sector
organizations
``(a) In General.--An employee of an agency assigned to a
private sector organization under this chapter is deemed,
during the period of the assignment, to be on detail to a
regular work assignment in his agency.
``(b) Coordination With Chapter 81.--Notwithstanding any
other provision of law, an employee of an agency assigned to
a private sector organization under this chapter is entitled
to retain coverage, rights, and benefits under subchapter I
of chapter 81, and employment during the assignment is deemed
employment by the United States, except that, if the employee
or the employee's dependents receive from the private sector
organization any payment under an insurance policy for which
the premium is wholly paid by the private sector
organization, or other benefit of any kind on account of the
same injury or death, then, the amount of such payment or
benefit shall be credited against any compensation otherwise
payable under subchapter I of chapter 81.
``(c) Reimbursements.--The assignment of an employee to a
private sector organization under this chapter may be made
with or without reimbursement by the private sector
organization for the travel and transportation expenses to or
from the place of assignment, subject to the same terms and
conditions as apply with respect to an employee of a Federal
agency or a State or local government under section 3375, and
for the pay, or a part thereof, of the employee during
assignment. Any reimbursements shall be credited to the
appropriation of the agency used for paying the travel and
transportation expenses or pay.
``(d) Tort Liability; Supervision.--The Federal Tort Claims
Act and any other Federal tort liability statute apply to an
employee of an agency assigned to a private sector
organization under this chapter. The supervision of the
duties of an employee of an agency so assigned to a private
sector organization may be governed by an agreement between
the agency and the organization.
``(e) Small Business Concerns.--
``(1) In general.--The head of each agency shall take such
actions as may be necessary to ensure that, of the
assignments made under this chapter from such agency to
private sector organizations in each year, at least 20
percent are to small business concerns.
``(2) Definitions.--For purposes of this subsection--
``(A) the term `small business concern' means a business
concern that satisfies the definitions and standards
specified by the Administrator of the Small Business
Administration under section 3(a)(2) of the Small Business
Act (as from time to time amended by the Administrator);
``(B) the term `year' refers to the 12-month period
beginning on the date of the enactment of this chapter, and
each succeeding 12-month period in which any assignments
under this chapter may be made; and
``(C) the assignments `made' in a year are those commencing
in such year.
``(3) Reporting requirement.--An agency which fails to
comply with paragraph (1) in a year shall, within 90 days
after the end of such year, submit a report to the Committees
on Government Reform and Small Business of the House of
Representatives and the Committees on Governmental Affairs
and Small Business of the Senate. The report shall include--
``(A) the total number of assignments made under this
chapter from such agency to private sector organizations in
the year;
``(B) of that total number, the number (and percentage)
made to small business concerns; and
``(C) the reasons for the agency's noncompliance with
paragraph (1).
``(4) Exclusion.--This subsection shall not apply to an
agency in any year in which it makes fewer than 5 assignments
under this chapter to private sector organizations.
``Sec. 3704. Assignment of employees from private sector
organizations
``(a) In General.--An employee of a private sector
organization assigned to an agency under this chapter is
deemed, during the period of the assignment, to be on detail
to such agency.
``(b) Terms and Conditions.--An employee of a private
sector organization assigned to an agency under this
chapter--
``(1) may continue to receive pay and benefits from the
private sector organization from which he is assigned;
``(2) is deemed, notwithstanding subsection (a), to be an
employee of the agency for the purposes of--
``(A) chapter 73;
``(B) sections 201, 203, 205, 207, 208, 209, 603, 606, 607,
643, 654, 1905, and 1913 of title 18;
``(C) sections 1343, 1344, and 1349(b) of title 31;
``(D) the Federal Tort Claims Act and any other Federal
tort liability statute;
``(E) the Ethics in Government Act of 1978;
``(F) section 1043 of the Internal Revenue Code of 1986;
and
``(G) section 27 of the Office of Federal Procurement
Policy Act;
``(3) may not have access to any trade secrets or to any
other nonpublic information which is of commercial value to
the private sector organization from which he is assigned;
and
``(4) is subject to such regulations as the President may
prescribe.
The supervision of an employee of a private sector
organization assigned to an agency under this chapter may be
governed by agreement between the agency and the private
sector organization concerned. Such an assignment may be made
with or without reimbursement by the agency for the pay, or a
part thereof, of the employee during the period of
assignment, or for any contribution of the private sector
organization to employee benefit systems.
``(c) Coordination With Chapter 81.--An employee of a
private sector organization assigned to an agency under this
chapter who suffers disability or dies as a result of
personal injury sustained while performing duties during the
assignment shall be treated, for the purpose of subchapter I
of chapter 81, as an employee as defined by section 8101 who
had sustained the injury in the performance of duty, except
that, if the employee or the employee's dependents receive
from the private sector organization any payment under an
insurance policy for which the premium is wholly paid by the
private sector organization, or other benefit of any kind on
account of the same injury or death, then, the amount of such
payment or benefit shall be credited against any compensation
otherwise payable under subchapter I of chapter 81.
``(d) Prohibition Against Charging Certain Costs to the
Federal Government.--A private sector organization may not
charge the Federal Government, as direct or indirect costs
under a Federal contract, the costs of pay or benefits paid
by the organization to an employee assigned to an agency
under this chapter for the period of the assignment.
``Sec. 3705. Application to Office of the Chief Technology
Officer of the District of Columbia
``(a) In General.--The Chief Technology Officer of the
District of Columbia may arrange for the assignment of an
employee of the Office of the Chief Technology Officer to a
private sector organization, or an employee of a private
sector organization to such Office, in the same manner as the
head of an agency under this chapter.
``(b) Terms and Conditions.--An assignment made pursuant to
subsection (a) shall be subject to the same terms and
conditions as an assignment made by the head of an agency
under this chapter, except that in applying such terms and
conditions to an assignment made pursuant to subsection (a),
any reference in this chapter to a provision of law or
regulation of the United States shall be deemed to be a
reference to the applicable provision of law or regulation of
the District of Columbia, including the applicable provisions
of the District of Columbia Government Comprehensive Merit
Personnel Act of 1978 (sec. 1-601.01 et seq., D.C. Official
Code) and section 601 of the District of Columbia Campaign
Finance Reform and Conflict of Interest Act (sec. 1-1106.01,
D.C. Official Code).
``(c) Definition.--For purposes of this section, the term
`Office of the Chief Technology Officer' means the office
established in the executive branch of the government of the
District of Columbia under the Office of the Chief Technology
Officer Establishment Act of 1998 (sec. 1-1401 et seq., D.C.
Official Code).
``Sec. 3706. Reporting requirement
``(a) In General.--The Office of Personnel Management
shall, not later than April 30 and October 31 of each year,
prepare and submit to the Committee on Government Reform of
the House of Representatives and the Committee on
Governmental Affairs of the Senate a semiannual report
summarizing the operation of this
[[Page H8952]]
chapter during the immediately preceding 6-month period
ending on March 31 and September 30, respectively.
``(b) Content.--Each report shall include, with respect to
the 6-month period to which such report relates--
``(1) the total number of individuals assigned to, and the
total number of individuals assigned from, each agency during
such period;
``(2) a brief description of each assignment included under
paragraph (1), including--
``(A) the name of the assigned individual, as well as the
private sector organization and the agency (including the
specific bureau or other agency component) to or from which
such individual was assigned;
``(B) the respective positions to and from which the
individual was assigned, including the duties and
responsibilities and the pay grade or level associated with
each; and
``(C) the duration and objectives of the individual's
assignment; and
``(3) such other information as the Office considers
appropriate.
``(c) Publication.--A copy of each report submitted under
subsection (a)--
``(1) shall be published in the Federal Register; and
``(2) shall be made publicly available on the Internet.
``(d) Agency Cooperation.--On request of the Office,
agencies shall furnish such information and reports as the
Office may require in order to carry out this section.
``Sec. 3707. Regulations
``The Director of the Office of Personnel Management shall
prescribe regulations for the administration of this
chapter.''.
(2) Report.--Not later than 4 years after the date of the
enactment of this Act, the General Accounting Office shall
prepare and submit to the Committee on Government Reform of
the House of Representatives and the Committee on
Governmental Affairs of the Senate a report on the operation
of chapter 37 of title 5, United States Code (as added by
this subsection). Such report shall include--
(A) an evaluation of the effectiveness of the program
established by such chapter; and
(B) a recommendation as to whether such program should be
continued (with or without modification) or allowed to lapse.
(3) Clerical Amendment.--The analysis for part III of title
5, United States Code, is amended by inserting after the item
relating to chapter 35 the following:
``37. Information Technology Exchange Program...................3701''.
(d) Ethics Provisions.--
(1) One-year restriction on certain communications.--
Section 207(c)(2)(A) of title 18, United States Code, is
amended--
(A) by striking ``or'' at the end of clause (iii);
(B) by striking the period at the end of clause (iv) and
inserting ``; or''; and
(C) by adding at the end the following:
``(v) assigned from a private sector organization to an
agency under chapter 37 of title 5.''.
(2) Disclosure of confidential information.--Section 1905
of title 18, United States Code, is amended by inserting ``or
being an employee of a private sector organization who is or
was assigned to an agency under chapter 37 of title 5,''
after ``(15 U.S.C. 1311-1314),''.
(3) Contract advice.--Section 207 of title 18, United
States Code, is amended by adding at the end the following:
``(l) Contract Advice by Former Details.--Whoever, being an
employee of a private sector organization assigned to an
agency under chapter 37 of title 5, within one year after the
end of that assignment, knowingly represents or aids,
counsels, or assists in representing any other person (except
the United States) in connection with any contract with that
agency shall be punished as provided in section 216 of this
title.''.
(4) Restriction on disclosure of procurement information.--
Section 27 of the Office of Federal Procurement Policy Act
(41 U.S.C. 423) is amended in subsection (a)(1) by adding at
the end the following new sentence: ``In the case of an
employee of a private sector organization assigned to an
agency under chapter 37 of title 5, United States Code, in
addition to the restriction in the preceding sentence, such
employee shall not, other than as provided by law, knowingly
disclose contractor bid or proposal information or source
selection information during the three-year period after the
end of the assignment of such employee.''.
(e) Report on Existing Exchange Programs.--
(1) Exchange program defined.--For purposes of this
subsection, the term ``exchange program'' means an executive
exchange program, the program under subchapter VI of chapter
33 of title 5, United States Code, and any other program
which allows for--
(A) the assignment of employees of the Federal Government
to non-Federal employers;
(B) the assignment of employees of non-Federal employers to
the Federal Government; or
(C) both.
(2) Reporting requirement.--Not later than 1 year after the
date of the enactment of this Act, the Office of Personnel
Management shall prepare and submit to the Committee on
Government Reform of the House of Representatives and the
Committee on Governmental Affairs of the Senate a report
identifying all existing exchange programs.
(3) Specific information.--The report shall, for each such
program, include--
(A) a brief description of the program, including its size,
eligibility requirements, and terms or conditions for
participation;
(B) specific citation to the law or other authority under
which the program is established;
(C) the names of persons to contact for more information,
and how they may be reached; and
(D) any other information which the Office considers
appropriate.
(f) Report on the Establishment of a Governmentwide
Information Technology Training Program.--
(1) In general.--Not later January 1, 2003, the Office of
Personnel Management, in consultation with the Chief
Information Officers Council and the Administrator of General
Services, shall review and submit to the Committee on
Government Reform of the House of Representatives and the
Committee on Governmental Affairs of the Senate a written
report on the following:
(A) The adequacy of any existing information technology
training programs available to Federal employees on a
Governmentwide basis.
(B)(i) If one or more such programs already exist,
recommendations as to how they might be improved.
(ii) If no such program yet exists, recommendations as to
how such a program might be designed and established.
(C) With respect to any recommendations under subparagraph
(B), how the program under chapter 37 of title 5, United
States Code, might be used to help carry them out.
(2) Cost estimate.--The report shall, for any recommended
program (or improvements) under paragraph (1)(B), include the
estimated costs associated with the implementation and
operation of such program as so established (or estimated
difference in costs of any such program as so improved).
(g) Technical and Conforming Amendments.--
(1) Amendments to title 5, united states code.--Title 5,
United States Code, is amended--
(A) in section 3111, by adding at the end the following:
``(d) Notwithstanding section 1342 of title 31, the head of
an agency may accept voluntary service for the United States
under chapter 37 of this title and regulations of the Office
of Personnel Management.'';
(B) in section 4108, by striking subsection (d); and
(C) in section 7353(b), by adding at the end the following:
``(4) Nothing in this section precludes an employee of a
private sector organization, while assigned to an agency
under chapter 37, from continuing to receive pay and benefits
from such organization in accordance with such chapter.''.
(2) Amendment to title 18, united states code.--Section 209
of title 18, United States Code, is amended by adding at the
end the following:
``(g)(1) This section does not prohibit an employee of a
private sector organization, while assigned to an agency
under chapter 37 of title 5, from continuing to receive pay
and benefits from such organization in accordance with such
chapter.
``(2) For purposes of this subsection, the term `agency'
means an agency (as defined by section 3701 of title 5) and
the Office of the Chief Technology Officer of the District of
Columbia.''.
(3) Other amendments.--Section 125(c)(1) of Public Law 100-
238 (5 U.S.C. 8432 note) is amended--
(A) in subparagraph (B), by striking ``or'' at the end;
(B) in subparagraph (C), by striking ``and'' at the end and
inserting ``or''; and
(C) by adding at the end the following:
``(D) an individual assigned from a Federal agency to a
private sector organization under chapter 37 of title 5,
United States Code; and''.
SEC. 210. SHARE-IN-SAVINGS INITIATIVES.
(a) Defense Contracts.--(1) Chapter 137 of title 10, United
States Code, is amended by adding at the end the following
new section:
``Sec. 2332. Share-in-savings contracts
``(a) Authority To Enter Into Share-in-Savings Contracts.--
(1) The head of an agency may enter into a share-in-savings
contract for information technology (as defined in section
11101(6) of title 40) in which the Government awards a
contract to improve mission-related or administrative
processes or to accelerate the achievement of its mission and
share with the contractor in savings achieved through
contract performance.
``(2)(A) Except as provided in subparagraph (B), a share-
in-savings contract shall be awarded for a period of not more
than five years.
``(B) A share-in-savings contract may be awarded for a
period greater than five years, but not more than 10 years,
if the head of the agency determines in writing prior to
award of the contract that--
``(i) the level of risk to be assumed and the investment to
be undertaken by the contractor is likely to inhibit the
government from obtaining the needed information technology
competitively at a fair and reasonable price if the contract
is limited in duration to a period of five years or less; and
``(ii) usage of the information technology to be acquired
is likely to continue for a period of time sufficient to
generate reasonable benefit for the government.
``(3) Contracts awarded pursuant to the authority of this
section shall, to the maximum extent practicable, be
performance-based contracts that identify objective outcomes
and contain performance standards that will be used to
measure achievement and milestones that must be met before
payment is made.
``(4) Contracts awarded pursuant to the authority of this
section shall include a provision containing a quantifiable
baseline that is to be the basis upon which a savings share
ratio is established that governs the amount of payment a
contractor is to receive under the contract. Before
commencement of performance of such a contract, the senior
procurement executive of the agency shall determine in
writing that the
[[Page H8953]]
terms of the provision are quantifiable and will likely yield
value to the Government.
``(5)(A) The head of the agency may retain savings realized
through the use of a share-in-savings contract under this
section that are in excess of the total amount of savings
paid to the contractor under the contract. Except as provided
in subparagraph (B), savings shall be credited to the
appropriation or fund against which charges were made to
carry out the contract and shall be used for information
technology.
``(B) Amounts retained by the agency under this subsection
shall--
``(i) without further appropriation, remain available until
expended; and
``(ii) be applied first to fund any contingent liabilities
associated with share-in-savings procurements that are not
fully funded.
``(b) Cancellation and Termination.--(1) If funds are not
made available for the continuation of a share-in-savings
contract entered into under this section in a subsequent
fiscal year, the contract shall be canceled or terminated.
The costs of cancellation or termination may be paid out of--
``(A) appropriations available for the performance of the
contract;
``(B) appropriations available for acquisition of the
information technology procured under the contract, and not
otherwise obligated; or
``(C) funds subsequently appropriated for payments of costs
of cancellation or termination, subject to the limitations in
paragraph (3).
``(2) The amount payable in the event of cancellation or
termination of a share-in-savings contract shall be
negotiated with the contractor at the time the contract is
entered into.
``(3)(A) Subject to subparagraph (B), the head of an agency
may enter into share-in-savings contracts under this section
in any given fiscal year even if funds are not made
specifically available for the full costs of cancellation or
termination of the contract if funds are available and
sufficient to make payments with respect to the first fiscal
year of the contract and the following conditions are met
regarding the funding of cancellation and termination
liability:
``(i) The amount of unfunded contingent liability for the
contract does not exceed the lesser of--
``(I) 25 percent of the estimated costs of a cancellation
or termination; or
``(II) $5,000,000.
``(ii) Unfunded contingent liability in excess of
$1,000,000 has been approved by the Director of the Office of
Management and Budget or the Director's designee.
``(B) The aggregate number of share-in-savings contracts
that may be entered into under subparagraph (A) by all
agencies to which this chapter applies in a fiscal year--
``(i) may not exceed 5, in each of fiscal years 2003, 2004,
and 2005; and
``(ii) may not exceed 10, in each of fiscal years 2006,
2007, 2008, and 2009.
``(c) Definitions.--In this section:
``(1) The term `contractor' means a private entity that
enters into a contract with an agency.
``(2) The term `savings' means--
``(A) monetary savings to an agency; or
``(B) savings in time or other benefits realized by the
agency, including enhanced revenues.
``(3) The term `share-in-savings contract' means a contract
under which--
``(A) a contractor provides solutions for--
``(i) improving the agency's mission-related or
administrative processes; or
``(ii) accelerating the achievement of agency missions; and
``(B) the head of the agency pays the contractor an amount
equal to a portion of the savings derived by the agency
from--
``(i) any improvements in mission-related or administrative
processes that result from implementation of the solution; or
``(ii) acceleration of achievement of agency missions.
``(d) Termination.--No share-in-savings contracts may be
entered into under this section after September 30, 2009.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end of the following new item:
``2332. Share-in-savings contracts.''.
(b) Other Contracts.--Title III of the Federal Property and
Administrative Services Act of 1949 is amended by adding at
the end the following:
``SEC. 317. SHARE-IN-SAVINGS CONTRACTS.
``(a) Authority To Enter Into Share-in-Savings Contracts.--
(1) The head of an executive agency may enter into a share-
in-savings contract for information technology (as defined in
section 11101(6) of title 40, United States Code) in which
the Government awards a contract to improve mission-related
or administrative processes or to accelerate the achievement
of its mission and share with the contractor in savings
achieved through contract performance.
``(2)(A) Except as provided in subparagraph (B), a share-
in-savings contract shall be awarded for a period of not more
than five years.
``(B) A share-in-savings contract may be awarded for a
period greater than five years, but not more than 10 years,
if the head of the agency determines in writing prior to
award of the contract that--
``(i) the level of risk to be assumed and the investment to
be undertaken by the contractor is likely to inhibit the
government from obtaining the needed information technology
competitively at a fair and reasonable price if the contract
is limited in duration to a period of five years or less; and
``(ii) usage of the information technology to be acquired
is likely to continue for a period of time sufficient to
generate reasonable benefit for the government.
``(3) Contracts awarded pursuant to the authority of this
section shall, to the maximum extent practicable, be
performance-based contracts that identify objective outcomes
and contain performance standards that will be used to
measure achievement and milestones that must be met before
payment is made.
``(4) Contracts awarded pursuant to the authority of this
section shall include a provision containing a quantifiable
baseline that is to be the basis upon which a savings share
ratio is established that governs the amount of payment a
contractor is to receive under the contract. Before
commencement of performance of such a contract, the senior
procurement executive of the agency shall determine in
writing that the terms of the provision are quantifiable and
will likely yield value to the Government.
``(5)(A) The head of the agency may retain savings realized
through the use of a share-in-savings contract under this
section that are in excess of the total amount of savings
paid to the contractor under the contract. Except as provided
in subparagraph (B), savings shall be credited to the
appropriation or fund against which charges were made to
carry out the contract and shall be used for information
technology.
``(B) Amounts retained by the agency under this subsection
shall--
``(i) without further appropriation, remain available until
expended; and
``(ii) be applied first to fund any contingent liabilities
associated with share-in-savings procurements that are not
fully funded.
``(b) Cancellation and Termination.--(1) If funds are not
made available for the continuation of a share-in-savings
contract entered into under this section in a subsequent
fiscal year, the contract shall be canceled or terminated.
The costs of cancellation or termination may be paid out of--
``(A) appropriations available for the performance of the
contract;
``(B) appropriations available for acquisition of the
information technology procured under the contract, and not
otherwise obligated; or
``(C) funds subsequently appropriated for payments of costs
of cancellation or termination, subject to the limitations in
paragraph (3).
``(2) The amount payable in the event of cancellation or
termination of a share-in-savings contract shall be
negotiated with the contractor at the time the contract is
entered into.
``(3)(A) Subject to subparagraph (B), the head of an
executive agency may enter into share-in-savings contracts
under this section in any given fiscal year even if funds are
not made specifically available for the full costs of
cancellation or termination of the contract if funds are
available and sufficient to make payments with respect to the
first fiscal year of the contract and the following
conditions are met regarding the funding of cancellation and
termination liability:
``(i) The amount of unfunded contingent liability for the
contract does not exceed the lesser of--
``(I) 25 percent of the estimated costs of a cancellation
or termination; or
``(II) $5,000,000.
``(ii) Unfunded contingent liability in excess of
$1,000,000 has been approved by the Director of the Office of
Management and Budget or the Director's designee.
``(B) The aggregate number of share-in-savings contracts
that may be entered into under subparagraph (A) by all
executive agencies to which this chapter applies in a fiscal
year--
``(i) may not exceed 5, in each of fiscal years 2003, 2004,
and 2005; and
``(ii) may not exceed 10, in each of fiscal years 2006,
2007, 2008, and 2009.
``(c) Definitions.--In this section:
``(1) The term `contractor' means a private entity that
enters into a contract with an agency.
``(2) The term `savings' means--
``(A) monetary savings to an agency; or
``(B) savings in time or other benefits realized by the
agency, including enhanced revenues.
``(3) The term `share-in-savings contract' means a contract
under which--
``(A) a contractor provides solutions for--
``(i) improving the agency's mission-related or
administrative processes; or
``(ii) accelerating the achievement of agency missions; and
``(B) the head of the agency pays the contractor an amount
equal to a portion of the savings derived by the agency
from--
``(i) any improvements in mission-related or administrative
processes that result from implementation of the solution; or
``(ii) acceleration of achievement of agency missions.
``(d) Termination.--No share-in-savings contracts may be
entered into under this section after September 30, 2009.''.
(c) Development of Incentives.--The Director of the Office
of Management and Budget shall, in consultation with the
Committee on Governmental Affairs of the Senate, the
Committee on Government Reform of the House of
Representatives, and executive agencies, develop techniques
to permit an executive agency to retain a portion of the
savings (after payment of the contractor's share of the
savings) derived from share-in-savings contracts as funds are
appropriated to the agency in future fiscal years.
(d) Regulations.--Not later than 270 days after the date of
the enactment of this Act, the Federal Acquisition Regulation
shall be revised to implement the provisions enacted by this
section. Such revisions shall--
(1) provide for the use of competitive procedures in the
selection and award of share-in-savings contracts to--
(A) ensure the contractor's share of savings reflects the
risk involved and market conditions; and
(B) otherwise yield greatest value to the government; and
(2) allow appropriate regulatory flexibility to facilitate
the use of share-in-savings contracts
[[Page H8954]]
by executive agencies, including the use of innovative
provisions for technology refreshment and nonstandard Federal
Acquisition Regulation contract clauses.
(e) Additional Guidance.--The Administrator of General
Services shall--
(1) identify potential opportunities for the use of share-
in-savings contracts; and
(2) in consultation with the Director of the Office of
Management and Budget, provide guidance to executive agencies
for determining mutually beneficial savings share ratios and
baselines from which savings may be measured.
(f) OMB Report to Congress.--In consultation with executive
agencies, the Director of the Office of Management and Budget
shall, not later than 2 years after the date of the enactment
of this Act, submit to Congress a report containing--
(1) a description of the number of share-in-savings
contracts entered into by each executive agency under by this
section and the amendments made by this section, and, for
each contract identified--
(A) the information technology acquired;
(B) the total amount of payments made to the contractor;
and
(C) the total amount of savings or other measurable
benefits realized;
(2) a description of the ability of agencies to determine
the baseline costs of a project against which savings can be
measured; and
(3) any recommendations, as the Director deems appropriate,
regarding additional changes in law that may be necessary to
ensure effective use of share-in-savings contracts by
executive agencies.
(g) GAO Report to Congress.--The Comptroller General shall,
not later than 6 months after the report required under
subsection (f) is submitted to Congress, conduct a review of
that report and submit to Congress a report containing--
(1) the results of the review; and
(2) any recommendations, as the Comptroller General deems
appropriate, on the use of share-in-savings contracts by
executive agencies.
(h) Definitions.--In this section, the terms
``contractor'', ``savings'', and ``share-in-savings
contract'' have the meanings given those terms in section 317
of the Federal Property and Administrative Services Act of
1949 (as added by subsection (b)).
SEC. 211. AUTHORIZATION FOR ACQUISITION OF INFORMATION
TECHNOLOGY BY STATE AND LOCAL GOVERNMENTS
THROUGH FEDERAL SUPPLY SCHEDULES.
(a) Authority To Use Certain Supply Schedules.--Section 502
of title 40, United States Code, is amended by adding at the
end the following new subsection:
``(c) Use of Certain Supply Schedules.--
``(1) In general.--The Administrator may provide for the
use by State or local governments of Federal supply schedules
of the General Services Administration for automated data
processing equipment (including firmware), software,
supplies, support equipment, and services (as contained in
Federal supply classification code group 70).
``(2) Voluntary use.--In any case of the use by a State or
local government of a Federal supply schedule pursuant to
paragraph (1), participation by a firm that sells to the
Federal Government through the supply schedule shall be
voluntary with respect to a sale to the State or local
government through such supply schedule.
``(3) Definitions.--In this subsection:
``(A) The term `State or local government' includes any
State, local, regional, or tribal government, or any
instrumentality thereof (including any local educational
agency or institution of higher education).
``(B) The term `tribal government' means a tribal
organization, as defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
``(C) The term `local educational agency' has the meaning
given that term in section 8013 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7713).
``(D) The term `institution of higher education' has the
meaning given that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).''.
(b) Procedures.--Not later than 30 days after the date of
the enactment of this Act, the Administrator of General
Services shall establish procedures to implement section
501(c) of title 40, United States Code (as added by
subsection (a)).
(c) Report.--Not later than December 31, 2004, the
Administrator shall submit to the Committee on Government
Reform of the House of Representatives and the Committee on
Governmental Affairs of the Senate a report on the
implementation and effects of the amendment made by
subsection (a).
SEC. 212. INTEGRATED REPORTING STUDY AND PILOT PROJECTS.
(a) Purposes.--The purposes of this section are to--
(1) enhance the interoperability of Federal information
systems;
(2) assist the public, including the regulated community,
in electronically submitting information to agencies under
Federal requirements, by reducing the burden of duplicate
collection and ensuring the accuracy of submitted
information; and
(3) enable any person to integrate and obtain similar
information held by 1 or more agencies under 1 or more
Federal requirements without violating the privacy rights of
an individual.
(b) Definitions.--In this section, the term--
(1) ``agency'' means an Executive agency as defined under
section 105 of title 5, United States Code; and
(2) ``person'' means any individual, trust, firm, joint
stock company, corporation (including a government
corporation), partnership, association, State, municipality,
commission, political subdivision of a State, interstate
body, or agency or component of the Federal Government.
(c) Report.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Director shall oversee a study, in
consultation with agencies, the regulated community, public
interest organizations, and the public, and submit a report
to the Committee on Governmental Affairs of the Senate and
the Committee on Government Reform of the House of
Representatives on progress toward integrating Federal
information systems across agencies.
(2) Contents.--The report under this section shall--
(A) address the integration of data elements used in the
electronic collection of information within databases
established under Federal statute without reducing the
quality, accessibility, scope, or utility of the information
contained in each database;
(B) address the feasibility of developing, or enabling the
development of, software, including Internet-based tools, for
use by reporting persons in assembling, documenting, and
validating the accuracy of information electronically
submitted to agencies under nonvoluntary, statutory, and
regulatory requirements;
(C) address the feasibility of developing a distributed
information system involving, on a voluntary basis, at least
2 agencies, that--
(i) provides consistent, dependable, and timely public
access to the information holdings of 1 or more agencies, or
some portion of such holdings, without requiring public users
to know which agency holds the information; and
(ii) allows the integration of public information held by
the participating agencies;
(D) address the feasibility of incorporating other elements
related to the purposes of this section at the discretion of
the Director; and
(E) make any recommendations that the Director deems
appropriate on the use of integrated reporting and
information systems, to reduce the burden on reporting and
strengthen public access to databases within and across
agencies.
(d) Pilot Projects To Encourage Integrated Collection and
Management of Data and Interoperability of Federal
Information Systems.--
(1) In general.--In order to provide input to the study
under subsection (c), the Director shall designate, in
consultation with agencies, a series of no more than 5 pilot
projects that integrate data elements. The Director shall
consult with agencies, the regulated community, public
interest organizations, and the public on the implementation
of the pilot projects.
(2) Goals of pilot projects.--
(A) In general.--Each goal described under subparagraph (B)
shall be addressed by at least 1 pilot project each.
(B) Goals.--The goals under this paragraph are to--
(i) reduce information collection burdens by eliminating
duplicative data elements within 2 or more reporting
requirements;
(ii) create interoperability between or among public
databases managed by 2 or more agencies using technologies
and techniques that facilitate public access; and
(iii) develop, or enable the development of, software to
reduce errors in electronically submitted information.
(3) Input.--Each pilot project shall seek input from users
on the utility of the pilot project and areas for
improvement. To the extent practicable, the Director shall
consult with relevant agencies and State, tribal, and local
governments in carrying out the report and pilot projects
under this section.
(e) Protections.--The activities authorized under this
section shall afford protections for--
(1) confidential business information consistent with
section 552(b)(4) of title 5, United States Code, and other
relevant law;
(2) personal privacy information under sections 552(b) (6)
and (7)(C) and 552a of title 5, United States Code, and other
relevant law;
(3) other information consistent with section 552(b)(3) of
title 5, United States Code, and other relevant law; and
(4) confidential statistical information collected under a
confidentiality pledge, solely for statistical purposes,
consistent with the Office of Management and Budget's Federal
Statistical Confidentiality Order, and other relevant law.
SEC. 213. COMMUNITY TECHNOLOGY CENTERS.
(a) Purposes.--The purposes of this section are to--
(1) study and enhance the effectiveness of community
technology centers, public libraries, and other institutions
that provide computer and Internet access to the public; and
(2) promote awareness of the availability of on-line
government information and services, to users of community
technology centers, public libraries, and other public
facilities that provide access to computer technology and
Internet access to the public.
(b) Study and Report.--Not later than 2 years after the
effective date of this title, the Administrator shall--
(1) conduct a study to evaluate the best practices of
community technology centers that have received Federal
funds; and
(2) submit a report on the study to--
(A) the Committee on Governmental Affairs of the Senate;
(B) the Committee on Health, Education, Labor, and Pensions
of the Senate;
(C) the Committee on Government Reform of the House of
Representatives; and
(D) the Committee on Education and the Workforce of the
House of Representatives.
(c) Contents.--The report under subsection (b) may
consider--
(1) an evaluation of the best practices being used by
successful community technology centers;
[[Page H8955]]
(2) a strategy for--
(A) continuing the evaluation of best practices used by
community technology centers; and
(B) establishing a network to share information and
resources as community technology centers evolve;
(3) the identification of methods to expand the use of best
practices to assist community technology centers, public
libraries, and other institutions that provide computer and
Internet access to the public;
(4) a database of all community technology centers that
have received Federal funds, including--
(A) each center's name, location, services provided,
director, other points of contact, number of individuals
served; and
(B) other relevant information;
(5) an analysis of whether community technology centers
have been deployed effectively in urban and rural areas
throughout the Nation; and
(6) recommendations of how to--
(A) enhance the development of community technology
centers; and
(B) establish a network to share information and resources.
(d) Cooperation.--All agencies that fund community
technology centers shall provide to the Administrator any
information and assistance necessary for the completion of
the study and the report under this section.
(e) Assistance.--
(1) In general.--The Administrator, in consultation with
the Secretary of Education, shall work with other relevant
Federal agencies, and other interested persons in the private
and nonprofit sectors to--
(A) assist in the implementation of recommendations; and
(B) identify other ways to assist community technology
centers, public libraries, and other institutions that
provide computer and Internet access to the public.
(2) Types of assistance.--Assistance under this subsection
may include--
(A) contribution of funds;
(B) donations of equipment, and training in the use and
maintenance of the equipment; and
(C) the provision of basic instruction or training material
in computer skills and Internet usage.
(f) Online Tutorial.--
(1) In general.--The Administrator, in consultation with
the Secretary of Education, the Director of the Institute of
Museum and Library Services, other relevant agencies, and the
public, shall develop an online tutorial that--
(A) explains how to access Government information and
services on the Internet; and
(B) provides a guide to available online resources.
(2) Distribution.--The Administrator, with assistance from
the Secretary of Education, shall distribute information on
the tutorial to community technology centers, public
libraries, and other institutions that afford Internet access
to the public.
(g) Promotion of Community Technology Centers.--The
Administrator, with assistance from the Department of
Education and in consultation with other agencies and
organizations, shall promote the availability of community
technology centers to raise awareness within each community
where such a center is located.
(h) Authorization of Appropriations.--There are authorized
to be appropriated for the study of best practices at
community technology centers, for the development and
dissemination of the online tutorial, and for the promotion
of community technology centers under this section--
(1) $2,000,000 in fiscal year 2003;
(2) $2,000,000 in fiscal year 2004; and
(3) such sums as are necessary in fiscal years 2005 through
2007.
SEC. 214. ENHANCING CRISIS MANAGEMENT THROUGH ADVANCED
INFORMATION TECHNOLOGY.
(a) Purpose.--The purpose of this section is to improve how
information technology is used in coordinating and
facilitating information on disaster preparedness, response,
and recovery, while ensuring the availability of such
information across multiple access channels.
(b) In General.--
(1) Study on enhancement of crisis response.--Not later
than 90 days after the date of enactment of this Act, the
Administrator, in consultation with the Federal Emergency
Management Agency, shall enter into a contract to conduct a
study on using information technology to enhance crisis
preparedness, response, and consequence management of natural
and manmade disasters.
(2) Contents.--The study under this subsection shall
address--
(A) a research and implementation strategy for effective
use of information technology in crisis response and
consequence management, including the more effective use of
technologies, management of information technology research
initiatives, and incorporation of research advances into the
information and communications systems of--
(i) the Federal Emergency Management Agency; and
(ii) other Federal, State, and local agencies responsible
for crisis preparedness, response, and consequence
management; and
(B) opportunities for research and development on enhanced
technologies into areas of potential improvement as
determined during the course of the study.
(3) Report.--Not later than 2 years after the date on which
a contract is entered into under paragraph (1), the
Administrator shall submit a report on the study, including
findings and recommendations to--
(A) the Committee on Governmental Affairs of the Senate;
and
(B) the Committee on Government Reform of the House of
Representatives.
(4) Interagency cooperation.--Other Federal departments and
agencies with responsibility for disaster relief and
emergency assistance shall fully cooperate with the
Administrator in carrying out this section.
(5) Authorization of appropriations.--There are authorized
to be appropriated for research under this subsection, such
sums as are necessary for fiscal year 2003.
(c) Pilot Projects.--Based on the results of the research
conducted under subsection (b), the Administrator, in
consultation with the Federal Emergency Management Agency,
shall initiate pilot projects or report to Congress on other
activities that further the goal of maximizing the utility of
information technology in disaster management. The
Administrator shall cooperate with other relevant agencies,
and, if appropriate, State, local, and tribal governments, in
initiating such pilot projects.
SEC. 215. DISPARITIES IN ACCESS TO THE INTERNET.
(a) Study and Report.--
(1) Study.--Not later than 90 days after the date of
enactment of this Act, the Administrator of General Services
shall request that the National Academy of Sciences, acting
through the National Research Council, enter into a contract
to conduct a study on disparities in Internet access for
online Government services.
(2) Report.--Not later than 2 years after the date of
enactment of this Act, the Administrator of General Services
shall submit to the Committee on Governmental Affairs of the
Senate and the Committee on Government Reform of the House of
Representatives a final report of the study under this
section, which shall set forth the findings, conclusions, and
recommendations of the National Research Council.
(b) Contents.--The report under subsection (a) shall
include a study of--
(1) how disparities in Internet access influence the
effectiveness of online Government services, including a
review of--
(A) the nature of disparities in Internet access;
(B) the affordability of Internet service;
(C) the incidence of disparities among different groups
within the population; and
(D) changes in the nature of personal and public Internet
access that may alleviate or aggravate effective access to
online Government services;
(2) how the increase in online Government services is
influencing the disparities in Internet access and how
technology development or diffusion trends may offset such
adverse influences; and
(3) related societal effects arising from the interplay of
disparities in Internet access and the increase in online
Government services.
(c) Recommendations.--The report shall include
recommendations on actions to ensure that online Government
initiatives shall not have the unintended result of
increasing any deficiency in public access to Government
services.
(d) Authorization of Appropriations.--There are authorized
to be appropriated $950,000 in fiscal year 2003 to carry out
this section.
TITLE III--INFORMATION SECURITY
SEC. 301. INFORMATION SECURITY.
(a) Short Title.--This title may be cited as the ``Federal
Information Security Management Act of 2002''.
(b) Information Security.--
(1) In general.--Subchapter II of chapter 35 of title 44,
United States Code, is amended to read as follows:
``SUBCHAPTER II--INFORMATION SECURITY
``Sec. 3531. Purposes
``The purposes of this subchapter are to--
``(1) provide a comprehensive framework for ensuring the
effectiveness of information security controls over
information resources that support Federal operations and
assets;
``(2) recognize the highly networked nature of the current
Federal computing environment and provide effective
governmentwide management and oversight of the related
information security risks, including coordination of
information security efforts throughout the civilian,
national security, and law enforcement communities;
``(3) provide for development and maintenance of minimum
controls required to protect Federal information and
information systems;
``(4) provide a mechanism for improved oversight of Federal
agency information security programs;
``(5) acknowledge that commercially developed information
security products offer advanced, dynamic, robust, and
effective information security solutions, reflecting market
solutions for the protection of critical information
infrastructures important to the national defense and
economic security of the nation that are designed, built, and
operated by the private sector; and
``(6) recognize that the selection of specific technical
hardware and software information security solutions should
be left to individual agencies from among commercially
developed products.
``Sec. 3532. Definitions
``(a) In General.--Except as provided under subsection (b),
the definitions under section 3502 shall apply to this
subchapter.
``(b) Additional Definitions.--As used in this subchapter--
``(1) the term `information security' means protecting
information and information systems from unauthorized access,
use, disclosure, disruption, modification, or destruction in
order to provide--
``(A) integrity, which means guarding against improper
information modification or destruction, and includes
ensuring information nonrepudiation and authenticity;
``(B) confidentiality, which means preserving authorized
restrictions on access and disclosure, including means for
protecting personal privacy and proprietary information; and
[[Page H8956]]
``(C) availability, which means ensuring timely and
reliable access to and use of information;
``(2) the term `national security system' means any
information system (including any telecommunications system)
used or operated by an agency or by a contractor of an
agency, or other organization on behalf of an agency--
``(A) the function, operation, or use of which--
``(i) involves intelligence activities;
``(ii) involves cryptologic activities related to national
security;
``(iii) involves command and control of military forces;
``(iv) involves equipment that is an integral part of a
weapon or weapons system; or
``(v) is critical to the direct fulfillment of military or
intelligence missions,
except that this subparagraph does not include a system that
is used for routine administrative and business applications
(including payroll, finance, logistics, and personnel
management applications); or
``(B) is protected at all times by procedures established
for information that have been specifically authorized under
criteria established by an Executive order or an Act of
Congress to be kept classified in the interest of national
defense or foreign policy; and
``(3) the term `information technology' has the meaning
given that term in section 11101 of title 40.
``Sec. 3533. Authority and functions of the Director
``(a) The Director shall oversee agency information
security policies and practices, including--
``(1) developing and overseeing the implementation of
policies, principles, standards, and guidelines on
information security, including through the promulgation of
standards and guidelines under section 11331 of title 40;
``(2) requiring agencies, consistent with the standards
promulgated under such section 11331 and the requirements of
this subchapter, to identify and provide information security
protections commensurate with the risk and magnitude of the
harm resulting from the unauthorized access, use, disclosure,
disruption, modification, or destruction of--
``(A) information collected or maintained by or on behalf
of an agency; or
``(B) information systems used or operated by an agency or
by a contractor of an agency or other organization on behalf
of an agency;
``(3) coordinating the development of standards and
guidelines under section 20 of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-3) with agencies
and offices operating or exercising control of national
security systems (including the National Security Agency) to
assure, to the maximum extent feasible, that such standards
and guidelines are complementary with standards and
guidelines developed for national security systems;
``(4) overseeing agency compliance with the requirements of
this subchapter, including through any authorized action
under section 11303 of title 40, to enforce accountability
for compliance with such requirements;
``(5) reviewing at least annually, and approving or
disapproving, agency information security programs required
under section 3534(b);
``(6) coordinating information security policies and
procedures with related information resources management
policies and procedures;
``(7) overseeing the operation of the Federal information
security incident center required under section 3536; and
``(8) reporting to Congress no later than March 1 of each
year on agency compliance with the requirements of this
subchapter, including--
``(A) a summary of the findings of evaluations required by
section 3535;
``(B) significant deficiencies in agency information
security practices;
``(C) planned remedial action to address such deficiencies;
and
``(D) a summary of, and the views of the Director on, the
report prepared by the National Institute of Standards and
Technology under section 20(e)(7) of the National Institute
of Standards and Technology Act (15 U.S.C. 278g-3).
``(b) Except for the authorities described in paragraphs
(4) and (8) of subsection (a), the authorities of the
Director under this section shall not apply to national
security systems.
``Sec. 3534. Federal agency responsibilities
``(a) The head of each agency shall--
``(1) be responsible for--
``(A) providing information security protections
commensurate with the risk and magnitude of the harm
resulting from unauthorized access, use, disclosure,
disruption, modification, or destruction of--
``(i) information collected or maintained by or on behalf
of the agency; and
``(ii) information systems used or operated by an agency or
by a contractor of an agency or other organization on behalf
of an agency;
``(B) complying with the requirements of this subchapter
and related policies, procedures, standards, and guidelines,
including--
``(i) information security standards promulgated by the
Director under section 11331 of title 40; and
``(ii) information security standards and guidelines for
national security systems issued in accordance with law and
as directed by the President; and
``(C) ensuring that information security management
processes are integrated with agency strategic and
operational planning processes;
``(2) ensure that senior agency officials provide
information security for the information and information
systems that support the operations and assets under their
control, including through--
``(A) assessing the risk and magnitude of the harm that
could result from the unauthorized access, use, disclosure,
disruption, modification, or destruction of such information
or information systems;
``(B) determining the levels of information security
appropriate to protect such information and information
systems in accordance with standards promulgated under
section 11331 of title 40, for information security
classifications and related requirements;
``(C) implementing policies and procedures to cost-
effectively reduce risks to an acceptable level; and
``(D) periodically testing and evaluating information
security controls and techniques to ensure that they are
effectively implemented;
``(3) delegate to the agency Chief Information Officer
established under section 3506 (or comparable official in an
agency not covered by such section) the authority to ensure
compliance with the requirements imposed on the agency under
this subchapter, including--
``(A) designating a senior agency information security
officer who shall--
``(i) carry out the Chief Information Officer's
responsibilities under this section;
``(ii) possess professional qualifications, including
training and experience, required to administer the functions
described under this section;
``(iii) have information security duties as that official's
primary duty; and
``(iv) head an office with the mission and resources to
assist in ensuring agency compliance with this section;
``(B) developing and maintaining an agencywide information
security program as required by subsection (b);
``(C) developing and maintaining information security
policies, procedures, and control techniques to address all
applicable requirements, including those issued under section
3533 of this title, and section 11331 of title 40;
``(D) training and overseeing personnel with significant
responsibilities for information security with respect to
such responsibilities; and
``(E) assisting senior agency officials concerning their
responsibilities under paragraph (2);
``(4) ensure that the agency has trained personnel
sufficient to assist the agency in complying with the
requirements of this subchapter and related policies,
procedures, standards, and guidelines; and
``(5) ensure that the agency Chief Information Officer, in
coordination with other senior agency officials, reports
annually to the agency head on the effectiveness of the
agency information security program, including progress of
remedial actions.
``(b) Each agency shall develop, document, and implement an
agencywide information security program, approved by the
Director under section 3533(a)(5), to provide information
security for the information and information systems that
support the operations and assets of the agency, including
those provided or managed by another agency, contractor, or
other source, that includes--
``(1) periodic assessments of the risk and magnitude of the
harm that could result from the unauthorized access, use,
disclosure, disruption, modification, or destruction of
information and information systems that support the
operations and assets of the agency;
``(2) policies and procedures that--
``(A) are based on the risk assessments required by
paragraph (1);
``(B) cost-effectively reduce information security risks to
an acceptable level;
``(C) ensure that information security is addressed
throughout the life cycle of each agency information system;
and
``(D) ensure compliance with--
``(i) the requirements of this subchapter;
``(ii) policies and procedures as may be prescribed by the
Director, and information security standards promulgated
under section 11331 of title 40;
``(iii) minimally acceptable system configuration
requirements, as determined by the agency; and
``(iv) any other applicable requirements, including
standards and guidelines for national security systems issued
in accordance with law and as directed by the President;
``(3) subordinate plans for providing adequate information
security for networks, facilities, and systems or groups of
information systems, as appropriate;
``(4) security awareness training to inform personnel,
including contractors and other users of information systems
that support the operations and assets of the agency, of--
``(A) information security risks associated with their
activities; and
``(B) their responsibilities in complying with agency
policies and procedures designed to reduce these risks;
``(5) periodic testing and evaluation of the effectiveness
of information security policies, procedures, and practices,
to be performed with a frequency depending on risk, but no
less than annually, of which such testing--
``(A) shall include testing of management, operational, and
technical controls of every information system identified in
the inventory required under section 3505(c); and
``(B) may include testing relied on in a evaluation under
section 3535;
``(6) a process for planning, implementing, evaluating, and
documenting remedial action to address any deficiencies in
the information security policies, procedures, and practices
of the agency;
``(7) procedures for detecting, reporting, and responding
to security incidents, consistent with standards and
guidelines issued pursuant to section 3536(b), including--
``(A) mitigating risks associated with such incidents
before substantial damage is done;
[[Page H8957]]
``(B) notifying and consulting with the Federal information
security incident center referred to in section 3536; and
``(C) notifying and consulting with, as appropriate--
``(i) law enforcement agencies and relevant Offices of
Inspector General;
``(ii) an office designated by the President for any
incident involving a national security system; and
``(iii) any other agency or office, in accordance with law
or as directed by the President; and
``(8) plans and procedures to ensure continuity of
operations for information systems that support the
operations and assets of the agency.
``(c) Each agency shall--
``(1) report annually to the Director, the Committees on
Government Reform and Science of the House of
Representatives, the Committees on Governmental Affairs and
Commerce, Science, and Transportation of the Senate, the
appropriate authorization and appropriations committees of
Congress, and the Comptroller General on the adequacy and
effectiveness of information security policies, procedures,
and practices, and compliance with the requirements of this
subchapter, including compliance with each requirement of
subsection (b);
``(2) address the adequacy and effectiveness of information
security policies, procedures, and practices in plans and
reports relating to--
``(A) annual agency budgets;
``(B) information resources management under subchapter 1
of this chapter;
``(C) information technology management under subtitle III
of title 40;
``(D) program performance under sections 1105 and 1115
through 1119 of title 31, and sections 2801 and 2805 of title
39;
``(E) financial management under chapter 9 of title 31, and
the Chief Financial Officers Act of 1990 (31 U.S.C. 501 note;
Public Law 101-576) (and the amendments made by that Act);
``(F) financial management systems under the Federal
Financial Management Improvement Act (31 U.S.C. 3512 note);
and
``(G) internal accounting and administrative controls under
section 3512 of title 31, (known as the `Federal Managers
Financial Integrity Act'); and
``(3) report any significant deficiency in a policy,
procedure, or practice identified under paragraph (1) or
(2)--
``(A) as a material weakness in reporting under section
3512 of title 31; and
``(B) if relating to financial management systems, as an
instance of a lack of substantial compliance under the
Federal Financial Management Improvement Act (31 U.S.C. 3512
note).
``(d)(1) In addition to the requirements of subsection (c),
each agency, in consultation with the Director, shall include
as part of the performance plan required under section 1115
of title 31 a description of--
``(A) the time periods, and
``(B) the resources, including budget, staffing, and
training,
that are necessary to implement the program required under
subsection (b).
``(2) The description under paragraph (1) shall be based on
the risk assessments required under subsection (b)(2)(1).
``(e) Each agency shall provide the public with timely
notice and opportunities for comment on proposed information
security policies and procedures to the extent that such
policies and procedures affect communication with the public.
``Sec. 3535. Annual independent evaluation
``(a)(1) Each year each agency shall have performed an
independent evaluation of the information security program
and practices of that agency to determine the effectiveness
of such program and practices.
``(2) Each evaluation by an agency under this section shall
include--
``(A) testing of the effectiveness of information security
policies, procedures, and practices of a representative
subset of the agency's information systems;
``(B) an assessment (made on the basis of the results of
the testing) of compliance with--
``(i) the requirements of this subchapter; and
``(ii) related information security policies, procedures,
standards, and guidelines; and
``(C) separate presentations, as appropriate, regarding
information security relating to national security systems.
``(b) Subject to subsection (c)--
``(1) for each agency with an Inspector General appointed
under the Inspector General Act of 1978, the annual
evaluation required by this section shall be performed by the
Inspector General or by an independent external auditor, as
determined by the Inspector General of the agency; and
``(2) for each agency to which paragraph (1) does not
apply, the head of the agency shall engage an independent
external auditor to perform the evaluation.
``(c) For each agency operating or exercising control of a
national security system, that portion of the evaluation
required by this section directly relating to a national
security system shall be performed--
``(1) only by an entity designated by the agency head; and
``(2) in such a manner as to ensure appropriate protection
for information associated with any information security
vulnerability in such system commensurate with the risk and
in accordance with all applicable laws.
``(d) The evaluation required by this section may be based
in whole or in part on an audit, evaluation, or report
relating to programs or practices of the applicable agency.
``(e)(1) Each year, not later than such date established by
the Director, the head of each agency shall submit to the
Director the results of the evaluation required under this
section.
``(2) To the extent an evaluation required under this
section directly relates to a national security system, the
evaluation results submitted to the Director shall contain
only a summary and assessment of that portion of the
evaluation directly relating to a national security system.
``(f) Agencies and evaluators shall take appropriate steps
to ensure the protection of information which, if disclosed,
may adversely affect information security. Such protections
shall be commensurate with the risk and comply with all
applicable laws and regulations.
``(g)(1) The Director shall summarize the results of the
evaluations conducted under this section in the report to
Congress required under section 3533(a)(8).
``(2) The Director's report to Congress under this
subsection shall summarize information regarding information
security relating to national security systems in such a
manner as to ensure appropriate protection for information
associated with any information security vulnerability in
such system commensurate with the risk and in accordance with
all applicable laws.
``(3) Evaluations and any other descriptions of information
systems under the authority and control of the Director of
Central Intelligence or of National Foreign Intelligence
Programs systems under the authority and control of the
Secretary of Defense shall be made available to Congress only
through the appropriate oversight committees of Congress, in
accordance with applicable laws.
``(h) The Comptroller General shall periodically evaluate
and report to Congress on--
``(1) the adequacy and effectiveness of agency information
security policies and practices; and
``(2) implementation of the requirements of this
subchapter.
``Sec. 3536. Federal information security incident center
``(a) The Director shall ensure the operation of a central
Federal information security incident center to--
``(1) provide timely technical assistance to operators of
agency information systems regarding security incidents,
including guidance on detecting and handling information
security incidents;
``(2) compile and analyze information about incidents that
threaten information security;
``(3) inform operators of agency information systems about
current and potential information security threats, and
vulnerabilities; and
``(4) consult with agencies or offices operating or
exercising control of national security systems (including
the National Security Agency) and such other agencies or
offices in accordance with law and as directed by the
President regarding information security incidents and
related matters.
``(b) Each agency operating or exercising control of a
national security system shall share information about
information security incidents, threats, and vulnerabilities
with the Federal information security incident center to the
extent consistent with standards and guidelines for national
security systems, issued in accordance with law and as
directed by the President.
``Sec. 3537. National security systems
``The head of each agency operating or exercising control
of a national security system shall be responsible for
ensuring that the agency--
``(1) provides information security protections
commensurate with the risk and magnitude of the harm
resulting from the unauthorized access, use, disclosure,
disruption, modification, or destruction of the information
contained in such system;
``(2) implements information security policies and
practices as required by standards and guidelines for
national security systems, issued in accordance with law and
as directed by the President; and
``(3) complies with the requirements of this subchapter.
``Sec. 3538. Authorization of appropriations
``There are authorized to be appropriated to carry out the
provisions of this subchapter such sums as may be necessary
for each of fiscal years 2003 through 2007.
``Sec. 3539. Effect on existing law
``Nothing in this subchapter, section 11331 of title 40, or
section 20 of the National Standards and Technology Act (15
U.S.C. 278g-3) may be construed as affecting the authority of
the President, the Office of Management and Budget or the
Director thereof, the National Institute of Standards and
Technology, or the head of any agency, with respect to the
authorized use or disclosure of information, including with
regard to the protection of personal privacy under section
552a of title 5, the disclosure of information under section
552 of title 5, the management and disposition of records
under chapters 29, 31, or 33 of title 44, the management of
information resources under subchapter I of chapter 35 of
this title, or the disclosure of information to the Congress
or the Comptroller General of the United States.''.
(2) Clerical amendment.--The items in the table of sections
at the beginning of such chapter 35 under the heading
``SUBCHAPTER II--INFORMATION SECURITY'' are amended to read
as follows:
``3531. Purposes.
``3532. Definitions.
``3533. Authority and functions of the Director.
``3534. Federal agency responsibilities.
``3535. Annual independent evaluation.
``3536. Federal information security incident center.
``3537. National security systems.
``3538. Authorization of appropriations.
``3539. Effect on existing law.''.
(c) Information Security Responsibilities of Certain
Agencies.--
(1) National security responsibilities.--(A) Nothing in
this Act (including any amendment made by this Act) shall
supersede any authority
[[Page H8958]]
of the Secretary of Defense, the Director of Central
Intelligence, or other agency head, as authorized by law and
as directed by the President, with regard to the operation,
control, or management of national security systems, as
defined by section 3532(b)(2) of title 44, United States
Code.
(B) Section 2224 of title 10, United States Code, is
amended--
(i) in subsection (b), by striking ``(b) Objectives and
Minimum Requirements.--(1)'' and inserting ``(b) Objectives
of the Program.--'';
(ii) in subsection (b), by striking paragraph (2); and
(iii) in subsection (c), in the matter preceding paragraph
(1), by inserting ``, including through compliance with
subtitle II of chapter 35 of title 44'' after
``infrastructure''.
(2) Atomic energy act of 1954.--Nothing in this Act shall
supersede any requirement made by or under the Atomic Energy
Act of 1954 (42 U.S.C. 2011 et seq.). Restricted data or
formerly restricted data shall be handled, protected,
classified, downgraded, and declassified in conformity with
the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
SEC. 302. MANAGEMENT OF INFORMATION TECHNOLOGY.
(a) In General.--Section 11331 of title 40, United States
Code, is amended to read as follows:
``Sec. 11331. Responsibilities for federal information
systems standards
``(a) Information Security Standards.--
``(1) In general.--(A) Except as provided under paragraph
(2), the Director of the Office of Management and Budget
shall, on the basis of proposed standards developed by the
National Institute of Standards and Technology pursuant to
paragraph (3) of section 20(a) of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-3(a)),
promulgate information security standards pertaining to
Federal information systems.
``(B) Standards promulgated under subparagraph (A) shall
include--
``(i) standards that provide minimum information security
requirements as determined under section 20(b) of the
National Institute of Standards and Technology Act (15 U.S.C.
278g-3(b)); and
``(ii) such standards that are otherwise necessary to
improve the efficiency of operation or security of Federal
information systems.
``(C) Information security standards described under
subparagraph (B) shall be compulsory and binding.
``(2) National security systems.--Standards and guidelines
for national security systems under this subsection shall be
developed, promulgated, enforced, and overseen as otherwise
authorized by law and as directed by the President.
``(3) Agency head authority.--The head of an agency may
employ standards for the cost-effective information security
for all operations and assets within or under the supervision
of that agency that are more stringent than the standards
promulgated by the Director under this subsection, if such
standards--
``(A) contain, at a minimum, the provisions of those
applicable standards made compulsory and binding by the
Director; and
``(B) are otherwise consistent with policies and guidelines
issued under section 3533 of title 44.
``(4) Decisions on promulgation of standards.--(A) The
decision regarding the promulgation of any standard by the
Director under paragraphs (1) and (2) shall occur not later
than 6 months after the submission of the proposed standard
to the Director by the National Institute of Standards and
Technology, as provided under section 20 of the National
Institute of Standards and Technology Act (15 U.S.C. 278g-3).
``(B) A decision by the Director to significantly modify,
or not promulgate, a proposed standard submitted to the
Director by the National Institute of Standards and
Technology, as provided under section 20 of the National
Institute of Standards and Technology Act (15 U.S.C. 278g-3),
shall be made after the public is given an opportunity to
comment on the Director's proposed decision.
``(b) Additional Standards Relating to Federal Information
Systems.--
``(1) In general.--Except as provided under paragraph (2),
the Secretary of Commerce shall, on the basis of proposed
standards developed by the National Institute of Standards
and Technology pursuant to paragraph (2) of section 20(a) of
the National Institute of Standards and Technology Act (15
U.S.C. 278g-3(a)) and in consultation with the Director of
the Office of Management and Budget, promulgate standards
pertaining to Federal information systems. The Secretary
shall make such standards compulsory and binding to the
extent that the Secretary determines necessary to improve the
efficiency and effectiveness of the operation of Federal
information systems.
``(2) National security systems.--Standards and guidelines
for national security systems under this subsection shall be
developed, promulgated, enforced, and overseen as otherwise
authorized by law and as directed by the President.
``(3) Authority of Secretary.--The authority conferred upon
the Secretary of Commerce by this subsection shall be
exercised subject to direction by the President and in
coordination with the Director of the Office of Management
and Budget to ensure fiscal and policy consistency.
``(4) Agency head authority.--The head of an agency may
employ standards for information systems that are more
stringent than the standards promulgated by the Secretary of
Commerce under this subsection, if such standards contain, at
a minimum, the provisions of those applicable standards made
compulsory and binding by the Secretary of Commerce.
``(c) Definitions.--In this section:
``(1) Federal information system.--The term `Federal
information system' means an information system used or
operated by an agency, by a contractor of an agency, or by
another organization on behalf of an agency.
``(2) Information security.--The term `information
security' has the meaning given that term in section
3532(b)(1) of title 44.
``(3) National security system.--The term `national
security system' has the meaning given that term in section
3532(b)(2) of title 44.''.
(b) Clerical Amendment.--The item relating to section 11331
in the table of sections at the beginning of chapter 113 of
such title is amended to read as follows:
``11331. Responsibilities for Federal information systems standards.''.
SEC. 303. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.
Section 20 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g-3), is amended by striking the
text and inserting the following:
``(a) The Institute shall--
``(1) have the mission of developing standards, guidelines,
and associated methods and techniques for information
systems;
``(2) develop standards and guidelines, including minimum
requirements, for information systems used or operated by an
agency or by a contractor of an agency or other organization
on behalf of an agency, other than national security systems
(as defined in section 3532(b)(2) of title 44, United States
Code); and
``(3) develop standards and guidelines, including minimum
requirements, for providing adequate information security for
all agency operations and assets, but such standards and
guidelines shall not apply to national security systems.
``(b) The standards and guidelines required by subsection
(a) shall include, at a minimum--
``(1)(A) standards to be used by all agencies to categorize
all information and information systems collected or
maintained by or on behalf of each agency based on the
objectives of providing appropriate levels of information
security according to a range of risk levels;
``(B) guidelines recommending the types of information and
information systems to be included in each such category; and
``(C) minimum information security requirements for
information and information systems in each such category;
``(2) a definition of and guidelines concerning detection
and handling of information security incidents; and
``(3) guidelines developed in coordination with the
National Security Agency for identifying an information
system as a national security system consistent with
applicable requirements for national security systems, issued
in accordance with law and as directed by the President.
``(c) In developing standards and guidelines required by
subsections (a) and (b), the Institute shall--
``(1) consult with other agencies and offices and the
private sector (including the Director of the Office of
Management and Budget, the Departments of Defense and Energy,
the National Security Agency, the General Accounting Office,
and the Secretary of Homeland Security) to assure--
``(A) use of appropriate information security policies,
procedures, and techniques, in order to improve information
security and avoid unnecessary and costly duplication of
effort; and
``(B) that such standards and guidelines are complementary
with standards and guidelines employed for the protection of
national security systems and information contained in such
systems;
``(2) provide the public with an opportunity to comment on
proposed standards and guidelines;
``(3) submit to the Director of the Office of Management
and Budget for promulgation under section 11331 of title 40,
United States Code--
``(A) standards, as required under subsection (b)(1)(A), no
later than 12 months after the date of the enactment of this
section; and
``(B) minimum information security requirements for each
category, as required under subsection (b)(1)(C), no later
than 36 months after the date of the enactment of this
section;
``(4) issue guidelines as required under subsection
(b)(1)(B), no later than 18 months after the date of the
enactment of this section;
``(5) ensure that such standards and guidelines do not
specify the use or procurement of certain products, including
any specific hardware or software;
``(6) ensure that such standards and guidelines provide for
sufficient flexibility to permit alternative solutions to
provide equivalent levels of protection for identified
information security risks; and
``(7) use flexible, performance-based standards and
guidelines that, to the greatest extent possible, permit the
use of off-the-shelf commercially developed information
security products.
``(d)(1) There is established in the Institute an Office
for Information Security Programs.
``(2) The Office for Information Security Programs shall be
headed by a Director, who shall be a senior executive and
shall be compensated at a level in the Senior Executive
Service under section 5382 of title 5, United States Code, as
determined by the Secretary of Commerce.
``(3) The Director of the Institute shall delegate to the
Director of the Office of Information Security Programs the
authority to administer all functions under this section,
except that any such delegation shall not relieve the
Director of the Institute of responsibility for the
administration of such functions. The Director of the Office
of Information Security Programs shall serve as principal
adviser to the Director of the Institute on all functions
under this section.
[[Page H8959]]
``(e) The Institute shall--
``(1) submit standards developed pursuant to subsection
(a), along with recommendations as to the extent to which
these should be made compulsory and binding, to the Director
of the Office of Management and Budget for promulgation under
section 11331 of title 40, United States Code;
``(2) provide assistance to agencies regarding--
``(A) compliance with the standards and guidelines
developed under subsection (a);
``(B) detecting and handling information security
incidents; and
``(C) information security policies, procedures, and
practices;
``(3) conduct research, as needed, to determine the nature
and extent of information security vulnerabilities and
techniques for providing cost-effective information security;
``(4) develop and periodically revise performance
indicators and measures for agency information security
policies and practices;
``(5) evaluate private sector information security policies
and practices and commercially available information
technologies to assess potential application by agencies to
strengthen information security;
``(6) evaluate security policies and practices developed
for national security systems to assess potential application
by agencies to strengthen information security;
``(7) periodically assess the effectiveness of standards
and guidelines developed under this section and undertake
revisions as appropriate;
``(8) solicit and consider the recommendations of the
Information Security and Privacy Advisory Board, established
by section 21, regarding standards and guidelines developed
under subsection (a) and submit such recommendations to the
Director of the Office of Management and Budget with such
standards submitted to the Director; and
``(9) prepare an annual public report on activities
undertaken in the previous year, and planned for the coming
year, to carry out responsibilities under this section.
``(f) As used in this section--
``(1) the term `agency' has the same meaning as provided in
section 3502(1) of title 44, United States Code;
``(2) the term `information security' has the same meaning
as provided in section 3532(b)(1) of such title;
``(3) the term `information system' has the same meaning as
provided in section 3502(8) of such title;
``(4) the term `information technology' has the same
meaning as provided in section 11101 of title 40, United
States Code; and
``(5) the term `national security system' has the same
meaning as provided in section 3532(b)(2) of title 44, United
States Code.
``(g) There are authorized to be appropriated to the
Secretary of Commerce $20,000,000 for each of fiscal years
2003, 2004, 2005, 2006, and 2007 to enable the National
Institute of Standards and Technology to carry out the
provisions of this section.''.
SEC. 304. INFORMATION SECURITY AND PRIVACY ADVISORY BOARD.
Section 21 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g-4), is amended--
(1) in subsection (a), by striking ``Computer System
Security and Privacy Advisory Board'' and inserting
``Information Security and Privacy Advisory Board'';
(2) in subsection (a)(1), by striking ``computer or
telecommunications'' and inserting ``information
technology'';
(3) in subsection (a)(2)--
(A) by striking ``computer or telecommunications
technology'' and inserting ``information technology''; and
(B) by striking ``computer or telecommunications
equipment'' and inserting ``information technology'';
(4) in subsection (a)(3)--
(A) by striking ``computer systems'' and inserting
``information system''; and
(B) by striking ``computer systems security'' and inserting
``information security'';
(5) in subsection (b)(1) by striking ``computer systems
security'' and inserting ``information security'';
(6) in subsection (b) by striking paragraph (2) and
inserting the following:
``(2) to advise the Institute and the Director of the
Office of Management and Budget on information security and
privacy issues pertaining to Federal Government information
systems, including through review of proposed standards and
guidelines developed under section 20; and'';
(7) in subsection (b)(3) by inserting ``annually'' after
``report'';
(8) by inserting after subsection (e) the following new
subsection:
``(f) The Board shall hold meetings at such locations and
at such time and place as determined by a majority of the
Board.'';
(9) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(10) by striking subsection (h), as redesignated by
paragraph (9), and inserting the following:
``(h) As used in this section, the terms `information
system' and `information technology' have the meanings given
in section 20.''.
SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Computer Security Act.--Subsections (b) and (c) of
section 11332 of title 40, United States Code, are repealed.
(b) Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001.--The Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (Public Law 106-398)
is amended by striking section 1062 (44 U.S.C. 3531 note).
(c) Paperwork Reduction Act.--(1) Section 3504(g) of title
44, United States Code, is amended--
(A) by adding ``and'' at the end of paragraph (1);
(B) in paragraph (2)--
(i) by striking ``sections 11331 and 11332(b) and (c) of
title 40'' and inserting ``section 11331 of title 40 and
subchapter II of this chapter''; and
(ii) by striking ``; and'' and inserting a period; and
(C) by striking paragraph (3).
(2) Section 3505 of such title is amended by adding at the
end--
``(c)(1) The head of each agency shall develop and maintain
an inventory of major information systems (including major
national security systems) operated by or under the control
of such agency.
``(2) The identification of information systems in an
inventory under this subsection shall include an
identification of the interfaces between each such system and
all other systems or networks, including those not operated
by or under the control of the agency.
``(3) Such inventory shall be--
``(A) updated at least annually;
``(B) made available to the Comptroller General; and
``(C) used to support information resources management,
including--
``(i) preparation and maintenance of the inventory of
information resources under section 3506(b)(4);
``(ii) information technology planning, budgeting,
acquisition, and management under section 3506(h), subtitle
III of title 40, and related laws and guidance;
``(iii) monitoring, testing, and evaluation of information
security controls under subchapter II;
``(iv) preparation of the index of major information
systems required under section 552(g) of title 5, United
States Code; and
``(v) preparation of information system inventories
required for records management under chapters 21, 29, 31,
and 33.
``(4) The Director shall issue guidance for and oversee the
implementation of the requirements of this subsection.''.
(3) Section 3506(g) of such title is amended--
(A) by adding ``and'' at the end of paragraph (1);
(B) in paragraph (2)--
(i) by striking ``section 11332 of title 40'' and inserting
``subchapter II of this chapter''; and
(ii) by striking ``; and'' and inserting a period; and
(C) by striking paragraph (3).
SEC. 306. CONSTRUCTION.
Nothing in this title, or the amendments made by this
title, affects the authority of the National Institute of
Standards and Technology or the Department of Commerce
relating to the development and promulgation of standards or
guidelines under paragraphs (1) and (2) of section 20(a) of
the National Institute of Standards and Technology Act (15
U.S.C. 278g-3(a)).
TITLE IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
Except for those purposes for which an authorization of
appropriations is specifically provided in title I or II,
including the amendments made by such titles, there are
authorized to be appropriated such sums as are necessary to
carry out titles I and II for each of fiscal years 2003
through 2007.
SEC. 402. EFFECTIVE DATES.
(a) Titles I and II.--
(1) In general.--Except as provided under paragraph (2),
titles I and II and the amendments made by such titles shall
take effect 120 days after the date of enactment of this Act.
(2) Immediate enactment.--Sections 207, 214, and 215 shall
take effect on the date of enactment of this Act.
(b) Titles III and IV.--Title III and this title shall take
effect on the date of enactment of this Act.
TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY
SEC. 501. SHORT TITLE.
This title may be cited as the ``Confidential Information
Protection and Statistical Efficiency Act of 2002''.
SEC. 502. DEFINITIONS.
As used in this title:
(1) The term ``agency'' means any entity that falls within
the definition of the term ``executive agency'' as defined in
section 102 of title 31, United States Code, or ``agency'',
as defined in section 3502 of title 44, United States Code.
(2) The term ``agent''--
(A) means an employee of a private organization or a
researcher affiliated with an institution of higher learning
(including a person granted special sworn status by the
Bureau of the Census under section 23(c) of title 13, United
States Code) with whom a contract or other agreement is
executed, on a temporary basis, by an executive agency to
perform exclusively statistical activities under the control
and supervision of an officer or employee of that agency; or
(B) means an individual who is working under the authority
of a government entity with which a contract or other
agreement is executed by an executive agency to perform
exclusively statistical activities under the control of an
officer or employee of that agency; or
(C) means an individual who is a self-employed researcher,
a consultant, or a contractor, or who is an employee of a
contractor and with whom a contract or other agreement is
executed by an executive agency to perform a statistical
activity under the control of an officer or employee of that
agency; or
(D) means an individual who is a contractor or who is an
employee of a contractor engaged by the agency to design or
maintain the systems for handling or storage of data received
under this title; and
[[Page H8960]]
(E) who agrees in writing to comply with all provisions of
law that affect information acquired by that agency.
(3) The term ``business data'' means operating and
financial data and information about businesses, tax-exempt
organizations, and government entities.
(4) The term ``identifiable form'' means any representation
of information that permits the identity of the respondent to
whom the information applies to be reasonably inferred by
either direct or indirect means.
(5) The term ``nonstatistical purpose''--
(A) means the use of data in identifiable form for any
purpose that is not a statistical purpose, including any
administrative, regulatory, law enforcement, adjudicatory, or
other purpose that affects the rights, privileges, or
benefits of a particular identifiable respondent; and
(B) includes the disclosure under section 552 of title 5,
United States Code (popularly known as the Freedom of
Information Act) of data that are acquired for exclusively
statistical purposes under a pledge of confidentiality.
(6) The term ``respondent'' means a person who, or
organization that, is requested or required to supply
information to an agency, is the subject of information
requested or required to be supplied to an agency, or
provides that information to an agency.
(7) The term ``statistical activities''--
(A) means the collection, compilation, processing, or
analysis of data for the purpose of describing or making
estimates concerning the whole, or relevant groups or
components within, the economy, society, or the natural
environment; and
(B) includes the development of methods or resources that
support those activities, such as measurement methods,
models, statistical classifications, or sampling frames.
(8) The term ``statistical agency or unit'' means an agency
or organizational unit of the executive branch whose
activities are predominantly the collection, compilation,
processing, or analysis of information for statistical
purposes.
(9) The term ``statistical purpose''--
(A) means the description, estimation, or analysis of the
characteristics of groups, without identifying the
individuals or organizations that comprise such groups; and
(B) includes the development, implementation, or
maintenance of methods, technical or administrative
procedures, or information resources that support the
purposes described in subparagraph (A).
SEC. 503. COORDINATION AND OVERSIGHT OF POLICIES.
(a) In General.--The Director of the Office of Management
and Budget shall coordinate and oversee the confidentiality
and disclosure policies established by this title. The
Director may promulgate rules or provide other guidance to
ensure consistent interpretation of this title by the
affected agencies.
(b) Agency Rules.--Subject to subsection (c), agencies may
promulgate rules to implement this title. Rules governing
disclosures of information that are authorized by this title
shall be promulgated by the agency that originally collected
the information.
(c) Review and Approval of Rules.--The Director shall
review any rules proposed by an agency pursuant to this title
for consistency with the provisions of this title and chapter
35 of title 44, United States Code, and such rules shall be
subject to the approval of the Director.
(d) Reports.--
(1) The head of each agency shall provide to the Director
of the Office of Management and Budget such reports and other
information as the Director requests.
(2) Each Designated Statistical Agency referred to in
section 522 shall report annually to the Director of the
Office of Management and Budget, the Committee on Government
Reform of the House of Representatives, and the Committee on
Governmental Affairs of the Senate on the actions it has
taken to implement sections 523 and 524. The report shall
include copies of each written agreement entered into
pursuant to section 524(a) for the applicable year.
(3) The Director of the Office of Management and Budget
shall include a summary of reports submitted to the Director
under paragraph (2) and actions taken by the Director to
advance the purposes of this title in the annual report to
the Congress on statistical programs prepared under section
3504(e)(2) of title 44, United States Code.
SEC. 504. EFFECT ON OTHER LAWS.
(a) Section 3510 of Title 44, United States Code.--This
title, including amendments made by this title, does not
diminish the authority under section 3510 of title 44, United
States Code, of the Director of the Office of Management and
Budget to direct, and of an agency to make, disclosures that
are not inconsistent with any applicable law.
(b) Sections 8, 16, 301, and 401 of Title 13 and Section
2108 of Title 44, United States Code.--This title, including
amendments made by this title, does not diminish the
authority of the Bureau of the Census to provide information
in accordance with sections 8, 16, 301, and 401 of title 13
and section 2108 of title 44, United States Code.
(c) Section 9 of Title 13, United States Code.--This title,
including amendments made by this title, shall not be
construed as authorizing the disclosure for nonstatistical
purposes of demographic data or information collected by the
Census Bureau pursuant to section 9 of title 13, United
States Code.
(d) Section 12 of the Federal Energy Administration Act of
1974.--In accordance with the provisions of this title, data
acquired for exclusively statistical purposes under a pledge
of confidentiality are exempt from mandatory disclosure in
identifiable form for nonstatistical purposes under section
12 of the Federal Energy Administration Act of 1974 (15
U.S.C. 771).
(e) Preemption of State Law.--Nothing in this title shall
preempt applicable State law regarding the confidentiality of
data collected by the States.
(f) Statutes Regarding False Statements.--Notwithstanding
section 512, information collected by an agency for
exclusively statistical purposes under a pledge of
confidentiality may be provided by the collecting agency to a
law enforcement agency for the prosecution of submissions to
the collecting agency of false statistical information under
statutes that authorize criminal penalties (such as section
221 of title 13, United States Code) or civil penalties for
the provision of false statistical information, unless such
disclosure or use would otherwise be prohibited under Federal
law.
(g) Construction.--Nothing in this title shall be construed
as restricting or diminishing any confidentiality protections
or penalties for unauthorized disclosure that otherwise apply
to data or information collected for statistical purposes or
nonstatistical purposes, including, but not limited to,
section 6103 of the Internal Revenue Code of 1986 (26 U.S.C.
6103).
Subtitle A--Confidential Information Protection
SEC. 511. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) Individuals, businesses, and other organizations have
varying degrees of legal protection when providing
information to the Federal Government for strictly
statistical purposes.
(2) Pledges of confidentiality by the Federal Government
provide assurances to the public that information about
individuals or organizations or provided by individuals or
organizations for exclusively statistical purposes will be
held in confidence and will not be used against such
individuals or organizations in any Federal Government
action.
(3) Protecting the confidentiality interests of individuals
or organizations who provide information for Federal
statistical programs serves both the interests of the public
and the needs of society.
(4) Declining trust of the public in the protection of
information provided to the Federal Government adversely
affects both the accuracy and completeness of statistical
analyses.
(5) Ensuring that information provided for statistical
purposes receives protection is essential in continuing
public cooperation in statistical programs.
(b) Purposes.--The purposes of this subtitle are the
following:
(1) To ensure that information supplied by individuals or
organizations to an agency for statistical purposes under a
pledge of confidentiality is used exclusively for statistical
purposes.
(2) To ensure that individuals or organizations who supply
information to the Federal Government for statistical
purposes will neither have that information disclosed in
identifiable form to anyone not authorized by this title nor
have that information used for any purpose other than a
statistical purpose.
(3) To safeguard the confidentiality of individually
identifiable information acquired under a pledge of
confidentiality for statistical purposes by controlling
access to, and uses made of, such information.
SEC. 512. LIMITATIONS ON USE AND DISCLOSURE OF DATA AND
INFORMATION.
(a) Use of Statistical Data or Information.--Data or
information acquired by an agency under a pledge of
confidentiality and for exclusively statistical purposes
shall be used by officers, employees, or agents of the agency
exclusively for statistical purposes.
(b) Disclosure of Statistical Data or Information.--
(1) Data or information acquired by an agency under a
pledge of confidentiality for exclusively statistical
purposes shall not be disclosed by an agency in identifiable
form, for any use other than an exclusively statistical
purpose, except with the informed consent of the respondent.
(2) A disclosure pursuant to paragraph (1) is authorized
only when the head of the agency approves such disclosure and
the disclosure is not prohibited by any other law.
(3) This section does not restrict or diminish any
confidentiality protections in law that otherwise apply to
data or information acquired by an agency under a pledge of
confidentiality for exclusively statistical purposes.
(c) Rule for Use of Data or Information for Nonstatistical
Purposes.--A statistical agency or unit shall clearly
distinguish any data or information it collects for
nonstatistical purposes (as authorized by law) by a rule that
provides that the respondent supplying the data or
information is fully informed, before the data or information
is collected, that the data or information could be used for
nonstatistical purposes.
(d) Designation of Agents.--A statistical agency or unit
may designate agents, by contract or by entering into a
special agreement containing the provisions required by
section 502, who may perform exclusively statistical
activities, subject to the limitations and penalties
described in this title.
SEC. 513. FINES AND PENALTIES.
Whoever, being an officer, employee, or agent of an agency
acquiring information for exclusively statistical purposes,
having taken and subscribed the oath of office, or having
sworn to observe the limitations imposed by section 512,
comes into possession of such information by reason of his or
her being an officer, employee, or agent and, knowing that
the disclosure of the specific information is prohibited
under the provisions of this title, willfully discloses the
information in any manner to a person or agency not entitled
to receive it, shall be guilty of a class E felony and
imprisoned for not more than 5 years, or fined not more than
$250,000, or both.
[[Page H8961]]
Subtitle B--Statistical Efficiency
SEC. 521. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) Federal statistics are an important source of
information for public and private decision-makers such as
policymakers, consumers, businesses, investors, and workers.
(2) Federal statistical agencies should continuously seek
to improve their efficiency. Statutory constraints limit the
ability of these agencies to share data and thus to achieve
higher efficiency for Federal statistical programs.
(3) The quality of Federal statistics depends on the
willingness of businesses to respond to statistical surveys.
Reducing reporting burdens will increase response rates, and
therefore lead to more accurate characterizations of the
economy.
(4) Enhanced sharing of business data among the Bureau of
the Census, the Bureau of Economic Analysis, and the Bureau
of Labor Statistics for exclusively statistical purposes will
improve their ability to track more accurately the large and
rapidly changing nature of United States business. In
particular, the statistical agencies will be able to better
ensure that businesses are consistently classified in
appropriate industries, resolve data anomalies, produce
statistical samples that are consistently adjusted for the
entry and exit of new businesses in a timely manner, and
correct faulty reporting errors quickly and efficiently.
(5) Congress enacted the International Investment and Trade
in Services Act of 1990 that allowed the Bureau of the
Census, the Bureau of Economic Analysis, and the Bureau of
Labor Statistics to share data on foreign-owned companies.
The Act not only expanded detailed industry coverage from 135
industries to over 800 industries with no increase in the
data collected from respondents but also demonstrated how
data sharing can result in the creation of valuable data
products.
(6) With subtitle A of this title, the sharing of business
data among the Bureau of the Census, the Bureau of Economic
Analysis, and the Bureau of Labor Statistics continues to
ensure the highest level of confidentiality for respondents
to statistical surveys.
(b) Purposes.--The purposes of this subtitle are the
following:
(1) To authorize the sharing of business data among the
Bureau of the Census, the Bureau of Economic Analysis, and
the Bureau of Labor Statistics for exclusively statistical
purposes.
(2) To reduce the paperwork burdens imposed on businesses
that provide requested information to the Federal Government.
(3) To improve the comparability and accuracy of Federal
economic statistics by allowing the Bureau of the Census, the
Bureau of Economic Analysis, and the Bureau of Labor
Statistics to update sample frames, develop consistent
classifications of establishments and companies into
industries, improve coverage, and reconcile significant
differences in data produced by the three agencies.
(4) To increase understanding of the United States economy,
especially for key industry and regional statistics, to
develop more accurate measures of the impact of technology on
productivity growth, and to enhance the reliability of the
Nation's most important economic indicators, such as the
National Income and Product Accounts.
SEC. 522. DESIGNATION OF STATISTICAL AGENCIES.
For purposes of this subtitle, the term ``Designated
Statistical Agency'' means each of the following:
(1) The Bureau of the Census of the Department of Commerce.
(2) The Bureau of Economic Analysis of the Department of
Commerce.
(3) The Bureau of Labor Statistics of the Department of
Labor.
SEC. 523. RESPONSIBILITIES OF DESIGNATED STATISTICAL
AGENCIES.
The head of each of the Designated Statistical Agencies
shall--
(1) identify opportunities to eliminate duplication and
otherwise reduce reporting burden and cost imposed on the
public in providing information for statistical purposes;
(2) enter into joint statistical projects to improve the
quality and reduce the cost of statistical programs; and
(3) protect the confidentiality of individually
identifiable information acquired for statistical purposes by
adhering to safeguard principles, including--
(A) emphasizing to their officers, employees, and agents
the importance of protecting the confidentiality of
information in cases where the identity of individual
respondents can reasonably be inferred by either direct or
indirect means;
(B) training their officers, employees, and agents in their
legal obligations to protect the confidentiality of
individually identifiable information and in the procedures
that must be followed to provide access to such information;
(C) implementing appropriate measures to assure the
physical and electronic security of confidential data;
(D) establishing a system of records that identifies
individuals accessing confidential data and the project for
which the data were required; and
(E) being prepared to document their compliance with
safeguard principles to other agencies authorized by law to
monitor such compliance.
SEC. 524. SHARING OF BUSINESS DATA AMONG DESIGNATED
STATISTICAL AGENCIES.
(a) In General.--A Designated Statistical Agency may
provide business data in an identifiable form to another
Designated Statistical Agency under the terms of a written
agreement among the agencies sharing the business data that
specifies--
(1) the business data to be shared;
(2) the statistical purposes for which the business data
are to be used;
(3) the officers, employees, and agents authorized to
examine the business data to be shared; and
(4) appropriate security procedures to safeguard the
confidentiality of the business data.
(b) Responsibilities of Agencies Under Other Laws.--The
provision of business data by an agency to a Designated
Statistical Agency under this subtitle shall in no way alter
the responsibility of the agency providing the data under
other statutes (including section 552 of title 5, United
States Code (popularly known as the ``Freedom of Information
Act''), and section 552b of title 5, United States Code
(popularly known as the ``Privacy Act of 1974'')) with
respect to the provision or withholding of such information
by the agency providing the data.
(c) Responsibilities of Officers, Employees, and Agents.--
Examination of business data in identifiable form shall be
limited to the officers, employees, and agents authorized to
examine the individual reports in accordance with written
agreements pursuant to this section. Officers, employees, and
agents of a Designated Statistical Agency who receive data
pursuant to this subtitle shall be subject to all provisions
of law, including penalties, that relate--
(1) to the unlawful provision of the business data that
would apply to the officers, employees, and agents of the
agency that originally obtained the information; and
(2) to the unlawful disclosure of the business data that
would apply to officers, employees, and agents of the agency
that originally obtained the information.
(d) Notice.--Whenever a written agreement concerns data
that respondents were required by law to report and the
respondents were not informed that the data could be shared
among the Designated Statistical Agencies, for exclusively
statistical purposes, the terms of such agreement shall be
described in a public notice issued by the agency that
intends to provide the data. Such notice shall allow a
minimum of 60 days for public comment.
SEC. 525. LIMITATIONS ON USE OF BUSINESS DATA PROVIDED BY
DESIGNATED STATISTICAL AGENCIES.
(a) In General.--Business data provided by a Designated
Statistical Agency pursuant to this subtitle shall be used
exclusively for statistical purposes.
(b) Publication of Data.--Publication of business data
acquired by a Designated Statistical Agency shall occur in a
manner whereby the data furnished by any particular
respondent are not in identifiable form.
SEC. 526. CONFORMING AMENDMENTS.
(a) Department of Commerce.--Section 1 of the Act of
January 27, 1938 (15 U.S.C. 176a) is amended by striking
``The'' and inserting ``Except as provided in the
Confidential Information Protection and Statistical
Efficiency Act of 2002, the''.
(b) Title 13.--Chapter 10 of title 13, United States Code,
is amended--
(1) by adding after section 401 the following:
``Sec. 402. Providing business data to Designated Statistical
Agencies
``The Bureau of the Census may provide business data to the
Bureau of Economic Analysis and the Bureau of Labor
Statistics (`Designated Statistical Agencies') if such
information is required for an authorized statistical purpose
and the provision is the subject of a written agreement with
that Designated Statistical Agency, or their successors, as
defined in the Confidential Information Protection and
Statistical Efficiency Act of 2002.''; and
(2) in the table of sections for the chapter by adding
after the item relating to section 401 the following:
``402. Providing business data to Designated Statistical Agencies.''.
Further amendment:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``E-
Government Act of 2002''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES
Sec. 101. Management and promotion of electronic government services.
Sec. 102. Conforming amendments.
TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT
SERVICES
Sec. 201. Definitions.
Sec. 202. Federal agency responsibilities.
Sec. 203. Compatibility of executive agency methods for use and
acceptance of electronic signatures.
Sec. 204. Federal Internet portal.
Sec. 205. Federal courts.
Sec. 206. Regulatory agencies.
Sec. 207. Accessibility, usability, and preservation of government
information.
Sec. 208. Privacy provisions.
Sec. 209. Federal information technology workforce development.
Sec. 210. Share-in-savings initiatives.
Sec. 211. Authorization for acquisition of information technology by
State and local governments through Federal supply
schedules.
Sec. 212. Integrated reporting study and pilot projects.
Sec. 213. Community technology centers.
[[Page H8962]]
Sec. 214. Enhancing crisis management through advanced information
technology.
Sec. 215. Disparities in access to the Internet.
Sec. 216. Common protocols for geographic information systems.
TITLE III--INFORMATION SECURITY
Sec. 301. Information security.
Sec. 302. Management of information technology.
Sec. 303. National Institute of Standards and Technology.
Sec. 304. Information Security and Privacy Advisory Board.
Sec. 305. Technical and conforming amendments.
TITLE IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES
Sec. 401. Authorization of appropriations.
Sec. 402. Effective dates.
TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY
Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Coordination and oversight of policies.
Sec. 504. Effect on other laws.
Subtitle A--Confidential Information Protection
Sec. 511. Findings and purposes.
Sec. 512. Limitations on use and disclosure of data and information.
Sec. 513. Fines and penalties.
Subtitle B--Statistical Efficiency
Sec. 521. Findings and purposes.
Sec. 522. Designation of statistical agencies.
Sec. 523. Responsibilities of designated statistical agencies.
Sec. 524. Sharing of business data among designated statistical
agencies.
Sec. 525. Limitations on use of business data provided by designated
statistical agencies.
Sec. 526. Conforming amendments.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) The use of computers and the Internet is rapidly
transforming societal interactions and the relationships
among citizens, private businesses, and the Government.
(2) The Federal Government has had uneven success in
applying advances in information technology to enhance
governmental functions and services, achieve more efficient
performance, increase access to Government information, and
increase citizen participation in Government.
(3) Most Internet-based services of the Federal Government
are developed and presented separately, according to the
jurisdictional boundaries of an individual department or
agency, rather than being integrated cooperatively according
to function or topic.
(4) Internet-based Government services involving
interagency cooperation are especially difficult to develop
and promote, in part because of a lack of sufficient funding
mechanisms to support such interagency cooperation.
(5) Electronic Government has its impact through improved
Government performance and outcomes within and across
agencies.
(6) Electronic Government is a critical element in the
management of Government, to be implemented as part of a
management framework that also addresses finance,
procurement, human capital, and other challenges to improve
the performance of Government.
(7) To take full advantage of the improved Government
performance that can be achieved through the use of Internet-
based technology requires strong leadership, better
organization, improved interagency collaboration, and more
focused oversight of agency compliance with statutes related
to information resource management.
(b) Purposes.--The purposes of this Act are the following:
(1) To provide effective leadership of Federal Government
efforts to develop and promote electronic Government services
and processes by establishing an Administrator of a new
Office of Electronic Government within the Office of
Management and Budget.
(2) To promote use of the Internet and other information
technologies to provide increased opportunities for citizen
participation in Government.
(3) To promote interagency collaboration in providing
electronic Government services, where this collaboration
would improve the service to citizens by integrating related
functions, and in the use of internal electronic Government
processes, where this collaboration would improve the
efficiency and effectiveness of the processes.
(4) To improve the ability of the Government to achieve
agency missions and program performance goals.
(5) To promote the use of the Internet and emerging
technologies within and across Government agencies to provide
citizen-centric Government information and services.
(6) To reduce costs and burdens for businesses and other
Government entities.
(7) To promote better informed decisionmaking by policy
makers.
(8) To promote access to high quality Government
information and services across multiple channels.
(9) To make the Federal Government more transparent and
accountable.
(10) To transform agency operations by utilizing, where
appropriate, best practices from public and private sector
organizations.
(11) To provide enhanced access to Government information
and services in a manner consistent with laws regarding
protection of personal privacy, national security, records
retention, access for persons with disabilities, and other
relevant laws.
TITLE I--OFFICE OF MANAGEMENT AND BUDGET ELECTRONIC GOVERNMENT SERVICES
SEC. 101. MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT
SERVICES.
(a) In General.--Title 44, United States Code, is amended
by inserting after chapter 35 the following:
``CHAPTER 36--MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT
SERVICES
``Sec.
``3601. Definitions.
``3602. Office of Electronic Government.
``3603. Chief Information Officers Council.
``3604. E-Government Fund.
``3605. Program to encourage innovative solutions to enhance electronic
Government services and processes.
``3606. E-Government report.
``Sec. 3601. Definitions
``In this chapter, the definitions under section 3502 shall
apply, and the term--
``(1) `Administrator' means the Administrator of the Office
of Electronic Government established under section 3602;
``(2) `Council' means the Chief Information Officers
Council established under section 3603;
``(3) `electronic Government' means the use by the
Government of web-based Internet applications and other
information technologies, combined with processes that
implement these technologies, to--
``(A) enhance the access to and delivery of Government
information and services to the public, other agencies, and
other Government entities; or
``(B) bring about improvements in Government operations
that may include effectiveness, efficiency, service quality,
or transformation;
``(4) `enterprise architecture'--
``(A) means--
``(i) a strategic information asset base, which defines the
mission;
``(ii) the information necessary to perform the mission;
``(iii) the technologies necessary to perform the mission;
and
``(iv) the transitional processes for implementing new
technologies in response to changing mission needs; and
``(B) includes--
``(i) a baseline architecture;
``(ii) a target architecture; and
``(iii) a sequencing plan;
``(5) `Fund' means the E-Government Fund established under
section 3604;
``(6) `interoperability' means the ability of different
operating and software systems, applications, and services to
communicate and exchange data in an accurate, effective, and
consistent manner;
``(7) `integrated service delivery' means the provision of
Internet-based Federal Government information or services
integrated according to function or topic rather than
separated according to the boundaries of agency jurisdiction;
and
``(8) `tribal government' means--
``(A) the governing body of any Indian tribe, band, nation,
or other organized group or community located in the
continental United States (excluding the State of Alaska)
that is recognized as eligible for the special programs and
services provided by the United States to Indians because of
their status as Indians, and
``(B) any Alaska Native regional or village corporation
established pursuant to the Alaska Native Claims Settlement
Act (43 U.S.C. 1601 et seq.).
``Sec. 3602. Office of Electronic Government
``(a) There is established in the Office of Management and
Budget an Office of Electronic Government.
``(b) There shall be at the head of the Office an
Administrator who shall be appointed by the President.
``(c) The Administrator shall assist the Director in
carrying out--
``(1) all functions under this chapter;
``(2) all of the functions assigned to the Director under
title II of the E-Government Act of 2002; and
``(3) other electronic government initiatives, consistent
with other statutes.
``(d) The Administrator shall assist the Director and the
Deputy Director for Management and work with the
Administrator of the Office of Information and Regulatory
Affairs in setting strategic direction for implementing
electronic Government, under relevant statutes, including--
``(1) chapter 35;
``(2) subtitle III of title 40, United States Code;
``(3) section 552a of title 5 (commonly referred to as the
`Privacy Act');
``(4) the Government Paperwork Elimination Act (44 U.S.C.
3504 note); and
``(5) the Federal Information Security Management Act of
2002.
``(e) The Administrator shall work with the Administrator
of the Office of Information and Regulatory Affairs and with
other offices within the Office of Management and
[[Page H8963]]
Budget to oversee implementation of electronic Government
under this chapter, chapter 35, the E-Government Act of 2002,
and other relevant statutes, in a manner consistent with law,
relating to--
``(1) capital planning and investment control for
information technology;
``(2) the development of enterprise architectures;
``(3) information security;
``(4) privacy;
``(5) access to, dissemination of, and preservation of
Government information;
``(6) accessibility of information technology for persons
with disabilities; and
``(7) other areas of electronic Government.
``(f) Subject to requirements of this chapter, the
Administrator shall assist the Director by performing
electronic Government functions as follows:
``(1) Advise the Director on the resources required to
develop and effectively administer electronic Government
initiatives.
``(2) Recommend to the Director changes relating to
Governmentwide strategies and priorities for electronic
Government.
``(3) Provide overall leadership and direction to the
executive branch on electronic Government.
``(4) Promote innovative uses of information technology by
agencies, particularly initiatives involving multiagency
collaboration, through support of pilot projects, research,
experimentation, and the use of innovative technologies.
``(5) Oversee the distribution of funds from, and ensure
appropriate administration and coordination of, the E-
Government Fund established under section 3604.
``(6) Coordinate with the Administrator of General Services
regarding programs undertaken by the General Services
Administration to promote electronic government and the
efficient use of information technologies by agencies.
``(7) Lead the activities of the Chief Information Officers
Council established under section 3603 on behalf of the
Deputy Director for Management, who shall chair the council.
``(8) Assist the Director in establishing policies which
shall set the framework for information technology standards
for the Federal Government developed by the National
Institute of Standards and Technology and promulgated by the
Secretary of Commerce under section 11331 of title 40, taking
into account, if appropriate, recommendations of the Chief
Information Officers Council, experts, and interested parties
from the private and nonprofit sectors and State, local, and
tribal governments, and maximizing the use of commercial
standards as appropriate, including the following:
``(A) Standards and guidelines for interconnectivity and
interoperability as described under section 3504.
``(B) Consistent with the process under section 207(d) of
the E-Government Act of 2002, standards and guidelines for
categorizing Federal Government electronic information to
enable efficient use of technologies, such as through the use
of extensible markup language.
``(C) Standards and guidelines for Federal Government
computer system efficiency and security.
``(9) Sponsor ongoing dialogue that--
``(A) shall be conducted among Federal, State, local, and
tribal government leaders on electronic Government in the
executive, legislative, and judicial branches, as well as
leaders in the private and nonprofit sectors, to encourage
collaboration and enhance understanding of best practices and
innovative approaches in acquiring, using, and managing
information resources;
``(B) is intended to improve the performance of governments
in collaborating on the use of information technology to
improve the delivery of Government information and services;
and
``(C) may include--
``(i) development of innovative models--
``(I) for electronic Government management and Government
information technology contracts; and
``(II) that may be developed through focused discussions or
using separately sponsored research;
``(ii) identification of opportunities for public-private
collaboration in using Internet-based technology to increase
the efficiency of Government-to-business transactions;
``(iii) identification of mechanisms for providing
incentives to program managers and other Government employees
to develop and implement innovative uses of information
technologies; and
``(iv) identification of opportunities for public, private,
and intergovernmental collaboration in addressing the
disparities in access to the Internet and information
technology.
``(10) Sponsor activities to engage the general public in
the development and implementation of policies and programs,
particularly activities aimed at fulfilling the goal of using
the most effective citizen-centered strategies and those
activities which engage multiple agencies providing similar
or related information and services.
``(11) Oversee the work of the General Services
Administration and other agencies in developing the
integrated Internet-based system under section 204 of the E-
Government Act of 2002.
``(12) Coordinate with the Administrator for Federal
Procurement Policy to ensure effective implementation of
electronic procurement initiatives.
``(13) Assist Federal agencies, including the General
Services Administration, the Department of Justice, and the
United States Access Board in--
``(A) implementing accessibility standards under section
508 of the Rehabilitation Act of 1973 (29 U.S.C. 794d); and
``(B) ensuring compliance with those standards through the
budget review process and other means.
``(14) Oversee the development of enterprise architectures
within and across agencies.
``(15) Assist the Director and the Deputy Director for
Management in overseeing agency efforts to ensure that
electronic Government activities incorporate adequate, risk-
based, and cost-effective security compatible with business
processes.
``(16) Administer the Office of Electronic Government
established under this section.
``(17) Assist the Director in preparing the E-Government
report established under section 3606.
``(g) The Director shall ensure that the Office of
Management and Budget, including the Office of Electronic
Government, the Office of Information and Regulatory Affairs,
and other relevant offices, have adequate staff and resources
to properly fulfill all functions under the E-Government Act
of 2002.
``Sec. 3603. Chief Information Officers Council
``(a) There is established in the executive branch a Chief
Information Officers Council.
``(b) The members of the Council shall be as follows:
``(1) The Deputy Director for Management of the Office of
Management and Budget, who shall act as chairperson of the
Council.
``(2) The Administrator of the Office of Electronic
Government.
``(3) The Administrator of the Office of Information and
Regulatory Affairs.
``(4) The chief information officer of each agency
described under section 901(b) of title 31.
``(5) The chief information officer of the Central
Intelligence Agency.
``(6) The chief information officer of the Department of
the Army, the Department of the Navy, and the Department of
the Air Force, if chief information officers have been
designated for such departments under section 3506(a)(2)(B).
``(7) Any other officer or employee of the United States
designated by the chairperson.
``(c)(1) The Administrator of the Office of Electronic
Government shall lead the activities of the Council on behalf
of the Deputy Director for Management.
``(2)(A) The Vice Chairman of the Council shall be selected
by the Council from among its members.
``(B) The Vice Chairman shall serve a 1-year term, and may
serve multiple terms.
``(3) The Administrator of General Services shall provide
administrative and other support for the Council.
``(d) The Council is designated the principal interagency
forum for improving agency practices related to the design,
acquisition, development, modernization, use, operation,
sharing, and performance of Federal Government information
resources.
``(e) In performing its duties, the Council shall consult
regularly with representatives of State, local, and tribal
governments.
``(f) The Council shall perform functions that include the
following:
``(1) Develop recommendations for the Director on
Government information resources management policies and
requirements.
``(2) Share experiences, ideas, best practices, and
innovative approaches related to information resources
management.
``(3) Assist the Administrator in the identification,
development, and coordination of multiagency projects and
other innovative initiatives to improve Government
performance through the use of information technology.
``(4) Promote the development and use of common performance
measures for agency information resources management under
this chapter and title II of the E-Government Act of 2002.
``(5) Work as appropriate with the National Institute of
Standards and Technology and the Administrator to develop
recommendations on information technology standards developed
under section 20 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g-3) and promulgated under
section 11331 of title 40, and maximize the use of commercial
standards as appropriate, including the following:
``(A) Standards and guidelines for interconnectivity and
interoperability as described under section 3504.
``(B) Consistent with the process under section 207(d) of
the E-Government Act of 2002, standards and guidelines for
categorizing Federal Government electronic information to
enable efficient use of technologies, such as through the use
of extensible markup language.
``(C) Standards and guidelines for Federal Government
computer system efficiency and security.
``(6) Work with the Office of Personnel Management to
assess and address the hiring, training, classification, and
professional development needs of the Government related to
information resources management.
``(7) Work with the Archivist of the United States to
assess how the Federal Records Act can be addressed
effectively by Federal information resources management
activities.
[[Page H8964]]
``Sec. 3604. E-Government Fund
``(a)(1) There is established in the Treasury of the United
States the E-Government Fund.
``(2) The Fund shall be administered by the Administrator
of the General Services Administration to support projects
approved by the Director, assisted by the Administrator of
the Office of Electronic Government, that enable the Federal
Government to expand its ability, through the development and
implementation of innovative uses of the Internet or other
electronic methods, to conduct activities electronically.
``(3) Projects under this subsection may include efforts
to--
``(A) make Federal Government information and services more
readily available to members of the public (including
individuals, businesses, grantees, and State and local
governments);
``(B) make it easier for the public to apply for benefits,
receive services, pursue business opportunities, submit
information, and otherwise conduct transactions with the
Federal Government; and
``(C) enable Federal agencies to take advantage of
information technology in sharing information and conducting
transactions with each other and with State and local
governments.
``(b)(1) The Administrator shall--
``(A) establish procedures for accepting and reviewing
proposals for funding;
``(B) consult with interagency councils, including the
Chief Information Officers Council, the Chief Financial
Officers Council, and other interagency management councils,
in establishing procedures and reviewing proposals; and
``(C) assist the Director in coordinating resources that
agencies receive from the Fund with other resources available
to agencies for similar purposes.
``(2) When reviewing proposals and managing the Fund, the
Administrator shall observe and incorporate the following
procedures:
``(A) A project requiring substantial involvement or
funding from an agency shall be approved by a senior official
with agencywide authority on behalf of the head of the
agency, who shall report directly to the head of the agency.
``(B) Projects shall adhere to fundamental capital planning
and investment control processes.
``(C) Agencies shall identify in their proposals resource
commitments from the agencies involved and how these
resources would be coordinated with support from the Fund,
and include plans for potential continuation of projects
after all funds made available from the Fund are expended.
``(D) After considering the recommendations of the
interagency councils, the Director, assisted by the
Administrator, shall have final authority to determine which
of the candidate projects shall be funded from the Fund.
``(E) Agencies shall assess the results of funded projects.
``(c) In determining which proposals to recommend for
funding, the Administrator--
``(1) shall consider criteria that include whether a
proposal--
``(A) identifies the group to be served, including
citizens, businesses, the Federal Government, or other
governments;
``(B) indicates what service or information the project
will provide that meets needs of groups identified under
subparagraph (A);
``(C) ensures proper security and protects privacy;
``(D) is interagency in scope, including projects
implemented by a primary or single agency that--
``(i) could confer benefits on multiple agencies; and
``(ii) have the support of other agencies; and
``(E) has performance objectives that tie to agency
missions and strategic goals, and interim results that relate
to the objectives; and
``(2) may also rank proposals based on criteria that
include whether a proposal--
``(A) has Governmentwide application or implications;
``(B) has demonstrated support by the public to be served;
``(C) integrates Federal with State, local, or tribal
approaches to service delivery;
``(D) identifies resource commitments from nongovernmental
sectors;
``(E) identifies resource commitments from the agencies
involved;
``(F) uses web-based technologies to achieve objectives;
``(G) identifies records management and records access
strategies;
``(H) supports more effective citizen participation in and
interaction with agency activities that further progress
toward a more citizen-centered Government;
``(I) directly delivers Government information and services
to the public or provides the infrastructure for delivery;
``(J) supports integrated service delivery;
``(K) describes how business processes across agencies will
reflect appropriate transformation simultaneous to technology
implementation; and
``(L) is new or innovative and does not supplant existing
funding streams within agencies.
``(d) The Fund may be used to fund the integrated Internet-
based system under section 204 of the E-Government Act of
2002.
``(e) None of the funds provided from the Fund may be
transferred to any agency until 15 days after the
Administrator of the General Services Administration has
submitted to the Committees on Appropriations of the Senate
and the House of Representatives, the Committee on
Governmental Affairs of the Senate, the Committee on
Government Reform of the House of Representatives, and the
appropriate authorizing committees of the Senate and the
House of Representatives, a notification and description of
how the funds are to be allocated and how the expenditure
will further the purposes of this chapter.
``(f)(1) The Director shall report annually to Congress on
the operation of the Fund, through the report established
under section 3606.
``(2) The report under paragraph (1) shall describe--
``(A) all projects which the Director has approved for
funding from the Fund; and
``(B) the results that have been achieved to date for these
funded projects.
``(g)(1) There are authorized to be appropriated to the
Fund--
``(A) $45,000,000 for fiscal year 2003;
``(B) $50,000,000 for fiscal year 2004;
``(C) $100,000,000 for fiscal year 2005;
``(D) $150,000,000 for fiscal year 2006; and
``(E) such sums as are necessary for fiscal year 2007.
``(2) Funds appropriated under this subsection shall remain
available until expended.
``Sec. 3605. Program to encourage innovative solutions to
enhance electronic Government services and processes
``(a) Establishment of Program.--The Administrator shall
establish and promote a Governmentwide program to encourage
contractor innovation and excellence in facilitating the
development and enhancement of electronic Government services
and processes.
``(b) Issuance of Announcements Seeking Innovative
Solutions.--Under the program, the Administrator, in
consultation with the Council and the Administrator for
Federal Procurement Policy, shall issue announcements seeking
unique and innovative solutions to facilitate the development
and enhancement of electronic Government services and
processes.
``(c) Multiagency Technical Assistance Team.--(1) The
Administrator, in consultation with the Council and the
Administrator for Federal Procurement Policy, shall convene a
multiagency technical assistance team to assist in screening
proposals submitted to the Administrator to provide unique
and innovative solutions to facilitate the development and
enhancement of electronic Government services and processes.
The team shall be composed of employees of the agencies
represented on the Council who have expertise in scientific
and technical disciplines that would facilitate the
assessment of the feasibility of the proposals.
``(2) The technical assistance team shall--
``(A) assess the feasibility, scientific and technical
merits, and estimated cost of each proposal; and
``(B) submit each proposal, and the assessment of the
proposal, to the Administrator.
``(3) The technical assistance team shall not consider or
evaluate proposals submitted in response to a solicitation
for offers for a pending procurement or for a specific agency
requirement.
``(4) After receiving proposals and assessments from the
technical assistance team, the Administrator shall consider
recommending appropriate proposals for funding under the E-
Government Fund established under section 3604 or, if
appropriate, forward the proposal and the assessment of it to
the executive agency whose mission most coincides with the
subject matter of the proposal.
``Sec. 3606. E-Government report
``(a) Not later than March 1 of each year, the Director
shall submit an E-Government status report to the Committee
on Governmental Affairs of the Senate and the Committee on
Government Reform of the House of Representatives.
``(b) The report under subsection (a) shall contain--
``(1) a summary of the information reported by agencies
under section 202(f) of the E-Government Act of 2002;
``(2) the information required to be reported by section
3604(f); and
``(3) a description of compliance by the Federal Government
with other goals and provisions of the E-Government Act of
2002.''.
(b) Technical and Conforming Amendment.--The table of
chapters for title 44, United States Code, is amended by
inserting after the item relating to chapter 35 the
following:
``36. Management and Promotion of Electronic Government Serv3601''.....
SEC. 102. CONFORMING AMENDMENTS.
(a) Electronic Government and Information Technologies.--
(1) In general.--Chapter 3 of title 40, United States Code,
is amended by inserting after section 304 the following new
section:
``Sec. 305. Electronic Government and information
technologies
``The Administrator of General Services shall consult with
the Administrator of the Office of Electronic Government on
programs undertaken by the General Services Administration to
promote electronic Government and the efficient use of
information technologies by Federal agencies.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 3 of
[[Page H8965]]
such title is amended by inserting after the item relating to
section 304 the following:
``305. Electronic Government and information technologies.''.
(b) Modification of Deputy Director for Management
Functions.--Section 503(b) of title 31, United States Code,
is amended--
(1) by redesignating paragraphs (5), (6), (7), (8), and
(9), as paragraphs (6), (7), (8), (9), and (10),
respectively; and
(2) by inserting after paragraph (4) the following:
``(5) Chair the Chief Information Officers Council
established under section 3603 of title 44.''.
(c) Office of Electronic Government.--
(1) In general.--Chapter 5 of title 31, United States Code,
is amended by inserting after section 506 the following:
``Sec. 507. Office of Electronic Government
``The Office of Electronic Government, established under
section 3602 of title 44, is an office in the Office of
Management and Budget.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 5 of title 31, United States Code, is
amended by inserting after the item relating to section 506
the following:
``507. Office of Electronic Government.''.
TITLE II--FEDERAL MANAGEMENT AND PROMOTION OF ELECTRONIC GOVERNMENT
SERVICES
SEC. 201. DEFINITIONS.
Except as otherwise provided, in this title the definitions
under sections 3502 and 3601 of title 44, United States Code,
shall apply.
SEC. 202. FEDERAL AGENCY RESPONSIBILITIES.
(a) In General.--The head of each agency shall be
responsible for--
(1) complying with the requirements of this Act (including
the amendments made by this Act), the related information
resource management policies and guidance established by the
Director of the Office of Management and Budget, and the
related information technology standards promulgated by the
Secretary of Commerce;
(2) ensuring that the information resource management
policies and guidance established under this Act by the
Director, and the related information technology standards
promulgated by the Secretary of Commerce are communicated
promptly and effectively to all relevant officials within
their agency; and
(3) supporting the efforts of the Director and the
Administrator of the General Services Administration to
develop, maintain, and promote an integrated Internet-based
system of delivering Federal Government information and
services to the public under section 204.
(b) Performance Integration.--
(1) Agencies shall develop performance measures that
demonstrate how electronic government enables progress toward
agency objectives, strategic goals, and statutory mandates.
(2) In measuring performance under this section, agencies
shall rely on existing data collections to the extent
practicable.
(3) Areas of performance measurement that agencies should
consider include--
(A) customer service;
(B) agency productivity; and
(C) adoption of innovative information technology,
including the appropriate use of commercial best practices.
(4) Agencies shall link their performance goals, as
appropriate, to key groups, including citizens, businesses,
and other governments, and to internal Federal Government
operations.
(5) As appropriate, agencies shall work collectively in
linking their performance goals to groups identified under
paragraph (4) and shall use information technology in
delivering Government information and services to those
groups.
(c) Avoiding Diminished Access.--When promulgating policies
and implementing programs regarding the provision of
Government information and services over the Internet, agency
heads shall consider the impact on persons without access to
the Internet, and shall, to the extent practicable--
(1) ensure that the availability of Government information
and services has not been diminished for individuals who lack
access to the Internet; and
(2) pursue alternate modes of delivery that make Government
information and services more accessible to individuals who
do not own computers or lack access to the Internet.
(d) Accessibility to People With Disabilities.--All actions
taken by Federal departments and agencies under this Act
shall be in compliance with section 508 of the Rehabilitation
Act of 1973 (29 U.S.C. 794d).
(e) Sponsored Activities.--Agencies shall sponsor
activities that use information technology to engage the
public in the development and implementation of policies and
programs.
(f) Chief Information Officers.--The Chief Information
Officer of each of the agencies designated under chapter 36
of title 44, United States Code (as added by this Act) shall
be responsible for--
(1) participating in the functions of the Chief Information
Officers Council; and
(2) monitoring the implementation, within their respective
agencies, of information technology standards promulgated by
the Secretary of Commerce, including common standards for
interconnectivity and interoperability, categorization of
Federal Government electronic information, and computer
system efficiency and security.
(g) E-Government Status Report.--
(1) In general.--Each agency shall compile and submit to
the Director an annual E-Government Status Report on--
(A) the status of the implementation by the agency of
electronic government initiatives;
(B) compliance by the agency with this Act; and
(C) how electronic Government initiatives of the agency
improve performance in delivering programs to constituencies.
(2) Submission.--Each agency shall submit an annual report
under this subsection--
(A) to the Director at such time and in such manner as the
Director requires;
(B) consistent with related reporting requirements; and
(C) which addresses any section in this title relevant to
that agency.
(h) Use of Technology.--Nothing in this Act supersedes the
responsibility of an agency to use or manage information
technology to deliver Government information and services
that fulfill the statutory mission and programs of the
agency.
(i) National Security Systems.--
(1) Inapplicability.--Except as provided under paragraph
(2), this title does not apply to national security systems
as defined in section 11103 of title 40, United States Code.
(2) Applicability.--This section, section 203, and section
214 do apply to national security systems to the extent
practicable and consistent with law.
SEC. 203. COMPATIBILITY OF EXECUTIVE AGENCY METHODS FOR USE
AND ACCEPTANCE OF ELECTRONIC SIGNATURES.
(a) Purpose.--The purpose of this section is to achieve
interoperable implementation of electronic signatures for
appropriately secure electronic transactions with Government.
(b) Electronic Signatures.--In order to fulfill the
objectives of the Government Paperwork Elimination Act
(Public Law 105-277; 112 Stat. 2681-749 through 2681-751),
each Executive agency (as defined under section 105 of title
5, United States Code) shall ensure that its methods for use
and acceptance of electronic signatures are compatible with
the relevant policies and procedures issued by the Director.
(c) Authority for Electronic Signatures.--The Administrator
of General Services shall support the Director by
establishing a framework to allow efficient interoperability
among Executive agencies when using electronic signatures,
including processing of digital signatures.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the General Services Administration, to
ensure the development and operation of a Federal bridge
certification authority for digital signature compatibility,
and for other activities consistent with this section,
$8,000,000 or such sums as are necessary in fiscal year 2003,
and such sums as are necessary for each fiscal year
thereafter.
SEC. 204. FEDERAL INTERNET PORTAL.
(a) In General.--
(1) Public access.--The Director shall work with the
Administrator of the General Services Administration and
other agencies to maintain and promote an integrated
Internet-based system of providing the public with access to
Government information and services.
(2) Criteria.--To the extent practicable, the integrated
system shall be designed and operated according to the
following criteria:
(A) The provision of Internet-based Government information
and services directed to key groups, including citizens,
business, and other governments, and integrated according to
function or topic rather than separated according to the
boundaries of agency jurisdiction.
(B) An ongoing effort to ensure that Internet-based
Government services relevant to a given citizen activity are
available from a single point.
(C) Access to Federal Government information and services
consolidated, as appropriate, with Internet-based information
and services provided by State, local, and tribal
governments.
(D) Access to Federal Government information held by 1 or
more agencies shall be made available in a manner that
protects privacy, consistent with law.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the General Services Administration
$15,000,000 for the maintenance, improvement, and promotion
of the integrated Internet-based system for fiscal year 2003,
and such sums as are necessary for fiscal years 2004 through
2007.
SEC. 205. FEDERAL COURTS.
(a) Individual Court Websites.--The Chief Justice of the
United States, the chief judge of each circuit and district
and of the Court of Federal Claims, and the chief bankruptcy
judge of each district shall cause to be established and
maintained, for the court of which the judge is chief justice
or judge, a website that contains the following information
or links to websites with the following information:
(1) Location and contact information for the courthouse,
including the telephone numbers and contact names for the
clerk's office and justices' or judges' chambers.
(2) Local rules and standing or general orders of the
court.
(3) Individual rules, if in existence, of each justice or
judge in that court.
(4) Access to docket information for each case.
[[Page H8966]]
(5) Access to the substance of all written opinions issued
by the court, regardless of whether such opinions are to be
published in the official court reporter, in a text
searchable format.
(6) Access to documents filed with the courthouse in
electronic form, to the extent provided under subsection (c).
(7) Any other information (including forms in a format that
can be downloaded) that the court determines useful to the
public.
(b) Maintenance of Data Online.--
(1) Update of information.--The information and rules on
each website shall be updated regularly and kept reasonably
current.
(2) Closed cases.--Electronic files and docket information
for cases closed for more than 1 year are not required to be
made available online, except all written opinions with a
date of issuance after the effective date of this section
shall remain available online.
(c) Electronic Filings.--
(1) In general.--Except as provided under paragraph (2) or
in the rules prescribed under paragraph (3), each court shall
make any document that is filed electronically publicly
available online. A court may convert any document that is
filed in paper form to electronic form. To the extent such
conversions are made, all such electronic versions of the
document shall be made available online.
(2) Exceptions.--Documents that are filed that are not
otherwise available to the public, such as documents filed
under seal, shall not be made available online.
(3) Privacy and security concerns.--(A)(i) The Supreme
Court shall prescribe rules, in accordance with sections 2072
and 2075 of title 28, United States Code, to protect privacy
and security concerns relating to electronic filing of
documents and the public availability under this subsection
of documents filed electronically.
(ii) Such rules shall provide to the extent practicable for
uniform treatment of privacy and security issues throughout
the Federal courts.
(iii) Such rules shall take into consideration best
practices in Federal and State courts to protect private
information or otherwise maintain necessary information
security.
(iv) To the extent that such rules provide for the
redaction of certain categories of information in order to
protect privacy and security concerns, such rules shall
provide that a party that wishes to file an otherwise proper
document containing such information may file an unredacted
document under seal, which shall be retained by the court as
part of the record, and which, at the discretion of the court
and subject to any applicable rules issued in accordance with
chapter 131 of title 28, United States Code, shall be either
in lieu of, or in addition, to, a redacted copy in the public
file.
(B)(i) Subject to clause (ii), the Judicial Conference of
the United States may issue interim rules, and interpretive
statements relating to the application of such rules, which
conform to the requirements of this paragraph and which shall
cease to have effect upon the effective date of the rules
required under subparagraph (A).
(ii) Pending issuance of the rules required under
subparagraph (A), any rule or order of any court, or of the
Judicial Conference, providing for the redaction of certain
categories of information in order to protect privacy and
security concerns arising from electronic filing shall comply
with, and be construed in conformity with, subparagraph
(A)(iv).
(C) Not later than 1 year after the rules prescribed under
subparagraph (A) take effect, and every 2 years thereafter,
the Judicial Conference shall submit to Congress a report on
the adequacy of those rules to protect privacy and security.
(d) Dockets With Links to Documents.--The Judicial
Conference of the United States shall explore the feasibility
of technology to post online dockets with links allowing all
filings, decisions, and rulings in each case to be obtained
from the docket sheet of that case.
(e) Cost of Providing Electronic Docketing Information.--
Section 303(a) of the Judiciary Appropriations Act, 1992 (28
U.S.C. 1913 note) is amended in the first sentence by
striking ``shall hereafter'' and inserting ``may, only to the
extent necessary,''.
(f) Time Requirements.--Not later than 2 years after the
effective date of this title, the websites under subsection
(a) shall be established, except that access to documents
filed in electronic form shall be established not later than
4 years after that effective date.
(g) Deferral.--
(1) In general.--
(A) Election.--
(i) Notification.--The Chief Justice of the United States,
a chief judge, or chief bankruptcy judge may submit a
notification to the Administrative Office of the United
States Courts to defer compliance with any requirement of
this section with respect to the Supreme Court, a court of
appeals, district, or the bankruptcy court of a district.
(ii) Contents.--A notification submitted under this
subparagraph shall state--
(I) the reasons for the deferral; and
(II) the online methods, if any, or any alternative
methods, such court or district is using to provide greater
public access to information.
(B) Exception.--To the extent that the Supreme Court, a
court of appeals, district, or bankruptcy court of a district
maintains a website under subsection (a), the Supreme Court
or that court of appeals or district shall comply with
subsection (b)(1).
(2) Report.--Not later than 1 year after the effective date
of this title, and every year thereafter, the Judicial
Conference of the United States shall submit a report to the
Committees on Governmental Affairs and the Judiciary of the
Senate and the Committees on Government Reform and the
Judiciary of the House of Representatives that--
(A) contains all notifications submitted to the
Administrative Office of the United States Courts under this
subsection; and
(B) summarizes and evaluates all notifications.
SEC. 206. REGULATORY AGENCIES.
(a) Purposes.--The purposes of this section are to--
(1) improve performance in the development and issuance of
agency regulations by using information technology to
increase access, accountability, and transparency; and
(2) enhance public participation in Government by
electronic means, consistent with requirements under
subchapter II of chapter 5 of title 5, United States Code,
(commonly referred to as the ``Administrative Procedures
Act'').
(b) Information Provided by Agencies Online.--To the extent
practicable as determined by the agency in consultation with
the Director, each agency (as defined under section 551 of
title 5, United States Code) shall ensure that a publicly
accessible Federal Government website includes all
information about that agency required to be published in the
Federal Register under paragraphs (1) and (2) of section
552(a) of title 5, United States Code.
(c) Submissions by Electronic Means.--To the extent
practicable, agencies shall accept submissions under section
553(c) of title 5, United States Code, by electronic means.
(d) Electronic Docketing.--
(1) In general.--To the extent practicable, as determined
by the agency in consultation with the Director, agencies
shall ensure that a publicly accessible Federal Government
website contains electronic dockets for rulemakings under
section 553 of title 5, United States Code.
(2) Information available.--Agency electronic dockets shall
make publicly available online to the extent practicable, as
determined by the agency in consultation with the Director--
(A) all submissions under section 553(c) of title 5, United
States Code; and
(B) other materials that by agency rule or practice are
included in the rulemaking docket under section 553(c) of
title 5, United States Code, whether or not submitted
electronically.
(e) Time Limitation.--Agencies shall implement the
requirements of this section consistent with a timetable
established by the Director and reported to Congress in the
first annual report under section 3606 of title 44 (as added
by this Act).
SEC. 207. ACCESSIBILITY, USABILITY, AND PRESERVATION OF
GOVERNMENT INFORMATION.
(a) Purpose.--The purpose of this section is to improve the
methods by which Government information, including
information on the Internet, is organized, preserved, and
made accessible to the public.
(b) Definitions.--In this section, the term--
(1) ``Committee'' means the Interagency Committee on
Government Information established under subsection (c); and
(2) ``directory'' means a taxonomy of subjects linked to
websites that--
(A) organizes Government information on the Internet
according to subject matter; and
(B) may be created with the participation of human editors.
(c) Interagency Committee.--
(1) Establishment.--Not later than 180 days after the date
of enactment of this title, the Director shall establish the
Interagency Committee on Government Information.
(2) Membership.--The Committee shall be chaired by the
Director or the designee of the Director and--
(A) shall include representatives from--
(i) the National Archives and Records Administration;
(ii) the offices of the Chief Information Officers from
Federal agencies; and
(iii) other relevant officers from the executive branch;
and
(B) may include representatives from the Federal
legislative and judicial branches.
(3) Functions.--The Committee shall--
(A) engage in public consultation to the maximum extent
feasible, including consultation with interested communities
such as public advocacy organizations;
(B) conduct studies and submit recommendations, as provided
under this section, to the Director and Congress; and
(C) share effective practices for access to, dissemination
of, and retention of Federal information.
(4) Termination.--The Committee may be terminated on a date
determined by the Director, except the Committee may not
terminate before the Committee submits all recommendations
required under this section.
(d) Categorizing of Information.--
(1) Committee functions.--Not later than 2 years after the
date of enactment of this Act, the Committee shall submit
recommendations to the Director on--
[[Page H8967]]
(A) the adoption of standards, which are open to the
maximum extent feasible, to enable the organization and
categorization of Government information--
(i) in a way that is searchable electronically, including
by searchable identifiers; and
(iii) in ways that are interoperable across agencies;
(B) the definition of categories of Government information
which should be classified under the standards; and
(C) determining priorities and developing schedules for the
initial implementation of the standards by agencies.
(2) Functions of the director.--Not later than 1 year after
the submission of recommendations under paragraph (1), the
Director shall issue policies--
(A) requiring that agencies use standards, which are open
to the maximum extent feasible, to enable the organization
and categorization of Government information--
(i) in a way that is searchable electronically, including
by searchable identifiers;
(ii) in ways that are interoperable across agencies; and
(iii) that are, as appropriate, consistent with the
provisions under section 3602(f)(8) of title 44, United
States Code;
(B) defining categories of Government information which
shall be required to be classified under the standards; and
(C) determining priorities and developing schedules for the
initial implementation of the standards by agencies.
(3) Modification of policies.--After the submission of
agency reports under paragraph (4), the Director shall modify
the policies, as needed, in consultation with the Committee
and interested parties.
(4) Agency functions.--Each agency shall report annually to
the Director, in the report established under section 202(g),
on compliance of that agency with the policies issued under
paragraph (2)(A).
(e) Public Access to Electronic Information.--
(1) Committee functions.--Not later than 2 years after the
date of enactment of this Act, the Committee shall submit
recommendations to the Director and the Archivist of the
United States on--
(A) the adoption by agencies of policies and procedures to
ensure that chapters 21, 25, 27, 29, and 31 of title 44,
United States Code, are applied effectively and
comprehensively to Government information on the Internet and
to other electronic records; and
(B) the imposition of timetables for the implementation of
the policies and procedures by agencies.
(2) Functions of the archivist.--Not later than 1 year
after the submission of recommendations by the Committee
under paragraph (1), the Archivist of the United States shall
issue policies--
(A) requiring the adoption by agencies of policies and
procedures to ensure that chapters 21, 25, 27, 29, and 31 of
title 44, United States Code, are applied effectively and
comprehensively to Government information on the Internet and
to other electronic records; and
(B) imposing timetables for the implementation of the
policies, procedures, and technologies by agencies.
(3) Modification of policies.--After the submission of
agency reports under paragraph (4), the Archivist of the
United States shall modify the policies, as needed, in
consultation with the Committee and interested parties.
(4) Agency functions.--Each agency shall report annually to
the Director, in the report established under section 202(g),
on compliance of that agency with the policies issued under
paragraph (2)(A).
(f) Agency Websites.--
(1) Standards for agency websites.--Not later than 2 years
after the effective date of this title, the Director shall
promulgate guidance for agency websites that includes--
(A) requirements that websites include direct links to--
(i) descriptions of the mission and statutory authority of
the agency;
(ii) information made available to the public under
subsections (a)(1) and (b) of section 552 of title 5, United
States Code (commonly referred to as the ``Freedom of
Information Act'');
(iii) information about the organizational structure of the
agency; and
(iv) the strategic plan of the agency developed under
section 306 of title 5, United States Code; and
(B) minimum agency goals to assist public users to navigate
agency websites, including--
(i) speed of retrieval of search results;
(ii) the relevance of the results;
(iii) tools to aggregate and disaggregate data; and
(iv) security protocols to protect information.
(2) Agency requirements.--(A) Not later than 2 years after
the date of enactment of this Act, each agency shall--
(i) consult with the Committee and solicit public comment;
(ii) establish a process for determining which Government
information the agency intends to make available and
accessible to the public on the Internet and by other means;
(iii) develop priorities and schedules for making
Government information available and accessible;
(iv) make such final determinations, priorities, and
schedules available for public comment;
(v) post such final determinations, priorities, and
schedules on the Internet; and
(vi) submit such final determinations, priorities, and
schedules to the Director, in the report established under
section 202(g).
(B) Each agency shall update determinations, priorities,
and schedules of the agency, as needed, after consulting with
the Committee and soliciting public comment, if appropriate.
(3) Public domain directory of public federal government
websites.--
(A) Establishment.--Not later than 2 years after the
effective date of this title, the Director and each agency
shall--
(i) develop and establish a public domain directory of
public Federal Government websites; and
(ii) post the directory on the Internet with a link to the
integrated Internet-based system established under section
204.
(B) Development.--With the assistance of each agency, the
Director shall--
(i) direct the development of the directory through a
collaborative effort, including input from--
(I) agency librarians;
(II) information technology managers;
(III) program managers;
(IV) records managers;
(V) Federal depository librarians; and
(VI) other interested parties; and
(ii) develop a public domain taxonomy of subjects used to
review and categorize public Federal Government websites.
(C) Update.--With the assistance of each agency, the
Administrator of the Office of Electronic Government shall--
(i) update the directory as necessary, but not less than
every 6 months; and
(ii) solicit interested persons for improvements to the
directory.
(g) Access to Federally Funded Research and Development.--
(1) Development and maintenance of governmentwide
repository and website.--
(A) Repository and website.--The Director of the Office of
Management and Budget (or the Director's delegate), in
consultation with the Director of the Office of Science and
Technology Policy and other relevant agencies, shall ensure
the development and maintenance of--
(i) a repository that fully integrates, to the maximum
extent feasible, information about research and development
funded by the Federal Government, and the repository shall--
(I) include information about research and development
funded by the Federal Government, consistent with any
relevant protections for the information under section 552 of
title 5, United States Code, and performed by--
(aa) institutions not a part of the Federal Government,
including State, local, and foreign governments; industrial
firms; educational institutions; not-for-profit
organizations; federally funded research and development
centers; and private individuals; and
(bb) entities of the Federal Government, including research
and development laboratories, centers, and offices; and
(II) integrate information about each separate research and
development task or award, including--
(aa) the dates upon which the task or award is expected to
start and end;
(bb) a brief summary describing the objective and the
scientific and technical focus of the task or award;
(cc) the entity or institution performing the task or award
and its contact information;
(dd) the total amount of Federal funds expected to be
provided to the task or award over its lifetime and the
amount of funds expected to be provided in each fiscal year
in which the work of the task or award is ongoing;
(ee) any restrictions attached to the task or award that
would prevent the sharing with the general public of any or
all of the information required by this subsection, and the
reasons for such restrictions; and
(ff) such other information as may be determined to be
appropriate; and
(ii) 1 or more websites upon which all or part of the
repository of Federal research and development shall be made
available to and searchable by Federal agencies and non-
Federal entities, including the general public, to
facilitate--
(I) the coordination of Federal research and development
activities;
(II) collaboration among those conducting Federal research
and development;
(III) the transfer of technology among Federal agencies and
between Federal agencies and non-Federal entities; and
(IV) access by policymakers and the public to information
concerning Federal research and development activities.
(B) Oversight.--The Director of the Office of Management
and Budget shall issue any guidance determined necessary to
ensure that agencies provide all information requested under
this subsection.
(2) Agency functions.--Any agency that funds Federal
research and development under this subsection shall provide
the information required to populate the repository in the
manner prescribed by the Director of the Office of Management
and Budget.
(3) Committee functions.--Not later than 18 months after
the date of enactment of this Act, working with the Director
of the Office of Science and Technology Policy, and after
consultation with interested parties, the Committee shall
submit recommendations to the Director on--
[[Page H8968]]
(A) policies to improve agency reporting of information for
the repository established under this subsection; and
(B) policies to improve dissemination of the results of
research performed by Federal agencies and federally funded
research and development centers.
(4) Functions of the director.--After submission of
recommendations by the Committee under paragraph (3), the
Director shall report on the recommendations of the Committee
and Director to Congress, in the E-Government report under
section 3606 of title 44 (as added by this Act).
(5) Authorization of appropriations.--There are authorized
to be appropriated for the development, maintenance, and
operation of the Governmentwide repository and website under
this subsection--
(A) $2,000,000 in each of the fiscal years 2003 through
2005; and
(B) such sums as are necessary in each of the fiscal years
2006 and 2007.
SEC. 208. PRIVACY PROVISIONS.
(a) Purpose.--The purpose of this section is to ensure
sufficient protections for the privacy of personal
information as agencies implement citizen-centered electronic
Government.
(b) Privacy Impact Assessments.--
(1) Responsibilities of agencies.--
(A) In general.--An agency shall take actions described
under subparagraph (B) before--
(i) developing or procuring information technology that
collects, maintains, or disseminates information that is in
an identifiable form; or
(ii) initiating a new collection of information that--
(I) will be collected, maintained, or disseminated using
information technology; and
(II) includes any information in an identifiable form
permitting the physical or online contacting of a specific
individual, if identical questions have been posed to, or
identical reporting requirements imposed on, 10 or more
persons, other than agencies, instrumentalities, or employees
of the Federal Government.
(B) Agency activities.--To the extent required under
subparagraph (A), each agency shall--
(i) conduct a privacy impact assessment;
(ii) ensure the review of the privacy impact assessment by
the Chief Information Officer, or equivalent official, as
determined by the head of the agency; and
(iii) if practicable, after completion of the review under
clause (ii), make the privacy impact assessment publicly
available through the website of the agency, publication in
the Federal Register, or other means.
(C) Sensitive information.--Subparagraph (B)(iii) may be
modified or waived for security reasons, or to protect
classified, sensitive, or private information contained in an
assessment.
(D) Copy to director.--Agencies shall provide the Director
with a copy of the privacy impact assessment for each system
for which funding is requested.
(2) Contents of a privacy impact assessment.--
(A) In general.--The Director shall issue guidance to
agencies specifying the required contents of a privacy impact
assessment.
(B) Guidance.--The guidance shall--
(i) ensure that a privacy impact assessment is commensurate
with the size of the information system being assessed, the
sensitivity of information that is in an identifiable form in
that system, and the risk of harm from unauthorized release
of that information; and
(ii) require that a privacy impact assessment address--
(I) what information is to be collected;
(II) why the information is being collected;
(III) the intended use of the agency of the information;
(IV) with whom the information will be shared;
(V) what notice or opportunities for consent would be
provided to individuals regarding what information is
collected and how that information is shared;
(VI) how the information will be secured; and
(VII) whether a system of records is being created under
section 552a of title 5, United States Code, (commonly
referred to as the ``Privacy Act'').
(3) Responsibilities of the director.--The Director shall--
(A) develop policies and guidelines for agencies on the
conduct of privacy impact assessments;
(B) oversee the implementation of the privacy impact
assessment process throughout the Government; and
(C) require agencies to conduct privacy impact assessments
of existing information systems or ongoing collections of
information that is in an identifiable form as the Director
determines appropriate.
(c) Privacy Protections on Agency Websites.--
(1) Privacy policies on websites.--
(A) Guidelines for notices.--The Director shall develop
guidance for privacy notices on agency websites used by the
public.
(B) Contents.--The guidance shall require that a privacy
notice address, consistent with section 552a of title 5,
United States Code--
(i) what information is to be collected;
(ii) why the information is being collected;
(iii) the intended use of the agency of the information;
(iv) with whom the information will be shared;
(v) what notice or opportunities for consent would be
provided to individuals regarding what information is
collected and how that information is shared;
(vi) how the information will be secured; and
(vii) the rights of the individual under section 552a of
title 5, United States Code (commonly referred to as the
``Privacy Act''), and other laws relevant to the protection
of the privacy of an individual.
(2) Privacy policies in machine-readable formats.--The
Director shall issue guidance requiring agencies to translate
privacy policies into a standardized machine-readable format.
(d) Definition.--In this section, the term ``identifiable
form'' means any representation of information that permits
the identity of an individual to whom the information applies
to be reasonably inferred by either direct or indirect means.
SEC. 209. FEDERAL INFORMATION TECHNOLOGY WORKFORCE
DEVELOPMENT.
(a) Purpose.--The purpose of this section is to improve the
skills of the Federal workforce in using information
technology to deliver Government information and services.
(b) Workforce Development.--
(1) In general.--In consultation with the Director of the
Office of Management and Budget, the Chief Information
Officers Council, and the Administrator of General Services,
the Director of the Office of Personnel Management shall--
(A) analyze, on an ongoing basis, the personnel needs of
the Federal Government related to information technology and
information resource management;
(B) identify where current information technology and
information resource management training do not satisfy the
personnel needs described in subparagraph (A);
(C) oversee the development of curricula, training methods,
and training priorities that correspond to the projected
personnel needs of the Federal Government related to
information technology and information resource management;
and
(D) assess the training of Federal employees in information
technology disciplines in order to ensure that the
information resource management needs of the Federal
Government are addressed.
(2) Information technology training programs.--The head of
each Executive agency, after consultation with the Director
of the Office of Personnel Management, the Chief Information
Officers Council, and the Administrator of General Services,
shall establish and operate information technology training
programs consistent with the requirements of this subsection.
Such programs shall--
(A) have curricula covering a broad range of information
technology disciplines corresponding to the specific
information technology and information resource management
needs of the agency involved;
(B) be developed and applied according to rigorous
standards; and
(C) be designed to maximize efficiency, through the use of
self-paced courses, online courses, on-the-job training, and
the use of remote instructors, wherever such features can be
applied without reducing the effectiveness of the training or
negatively impacting academic standards.
(3) Governmentwide policies and evaluation.--The Director
of the Office of Personnel Management, in coordination with
the Director of the Office of Management and Budget, shall
issue policies to promote the development of performance
standards for training and uniform implementation of this
subsection by Executive agencies, with due regard for
differences in program requirements among agencies that may
be appropriate and warranted in view of the agency mission.
The Director of the Office of Personnel Management shall
evaluate the implementation of the provisions of this
subsection by Executive agencies.
(4) Chief information officer authorities and
responsibilities.--Subject to the authority, direction, and
control of the head of an Executive agency, the chief
information officer of such agency shall carry out all
powers, functions, and duties of the head of the agency with
respect to implementation of this subsection. The chief
information officer shall ensure that the policies of the
agency head established in accordance with this subsection
are implemented throughout the agency.
(5) Information technology training reporting.--The
Director of the Office of Management and Budget shall ensure
that the heads of Executive agencies collect and maintain
standardized information on the information technology and
information resources management workforce related to the
implementation of this subsection.
(6) Authority to detail employees to non-Federal
employers.--In carrying out the preceding provisions of this
subsection, the Director of the Office of Personnel
Management may provide for a program under which a Federal
employee may be detailed to a non-Federal employer. The
Director of the Office of Personnel Management shall
prescribe regulations for such program, including the
conditions for service and duties as the Director considers
necessary.
(7) Coordination provision.--An assignment described in
section 3703 of title 5, United States Code, may not be made
unless a program under paragraph (6) is established, and the
assignment is made in accordance with the requirements of
such program.
[[Page H8969]]
(8) Employee participation.--Subject to information
resource management needs and the limitations imposed by
resource needs in other occupational areas, and consistent
with their overall workforce development strategies, agencies
shall encourage employees to participate in occupational
information technology training.
(9) Authorization of Appropriations.--There are authorized
to be appropriated to the Office of Personnel Management for
the implementation of this subsection, $15,000,000 in fiscal
year 2003, and such sums as are necessary for each fiscal
year thereafter.
(10) Executive agency defined.--For purposes of this
subsection, the term ``Executive agency'' has the meaning
given the term ``agency'' under section 3701 of title 5,
United States Code (as added by subsection (c)).
(c) Information Technology Exchange Program.--
(1) In general.--Subpart B of part III of title 5, United
States Code, is amended by adding at the end the following:
``CHAPTER 37--INFORMATION TECHNOLOGY EXCHANGE PROGRAM
``Sec.
``3701. Definitions.
``3702. General provisions.
``3703. Assignment of employees to private sector organizations.
``3704. Assignment of employees from private sector organizations.
``3705. Application to Office of the Chief Technology Officer of the
District of Columbia.
``3706. Reporting requirement.
``3707. Regulations.
``Sec. 3701. Definitions
``For purposes of this chapter--
``(1) the term `agency' means an Executive agency, but does
not include the General Accounting Office; and
``(2) the term `detail' means--
``(A) the assignment or loan of an employee of an agency to
a private sector organization without a change of position
from the agency that employs the individual, or
``(B) the assignment or loan of an employee of a private
sector organization to an agency without a change of position
from the private sector organization that employs the
individual,
whichever is appropriate in the context in which such term is
used.
``Sec. 3702. General provisions
``(a) Assignment Authority.--On request from or with the
agreement of a private sector organization, and with the
consent of the employee concerned, the head of an agency may
arrange for the assignment of an employee of the agency to a
private sector organization or an employee of a private
sector organization to the agency. An eligible employee is an
individual who--
``(1) works in the field of information technology
management;
``(2) is considered an exceptional performer by the
individual's current employer; and
``(3) is expected to assume increased information
technology management responsibilities in the future.
An employee of an agency shall be eligible to participate in
this program only if the employee is employed at the GS-11
level or above (or equivalent) and is serving under a career
or career-conditional appointment or an appointment of
equivalent tenure in the excepted service, and applicable
requirements of section 209(b) of the E-Government Act of
2002 are met with respect to the proposed assignment of such
employee.
``(b) Agreements.--Each agency that exercises its authority
under this chapter shall provide for a written agreement
between the agency and the employee concerned regarding the
terms and conditions of the employee's assignment. In the
case of an employee of the agency, the agreement shall--
``(1) require the employee to serve in the civil service,
upon completion of the assignment, for a period equal to the
length of the assignment; and
``(2) provide that, in the event the employee fails to
carry out the agreement (except for good and sufficient
reason, as determined by the head of the agency from which
assigned) the employee shall be liable to the United States
for payment of all expenses of the assignment.
An amount under paragraph (2) shall be treated as a debt due
the United States.
``(c) Termination.--Assignments may be terminated by the
agency or private sector organization concerned for any
reason at any time.
``(d) Duration.--Assignments under this chapter shall be
for a period of between 3 months and 1 year, and may be
extended in 3-month increments for a total of not more than 1
additional year, except that no assignment under this chapter
may commence after the end of the 5-year period beginning on
the date of the enactment of this chapter.
``(e) Assistance.--The Chief Information Officers Council,
by agreement with the Office of Personnel Management, may
assist in the administration of this chapter, including by
maintaining lists of potential candidates for assignment
under this chapter, establishing mentoring relationships for
the benefit of individuals who are given assignments under
this chapter, and publicizing the program.
``(f) Considerations.--In exercising any authority under
this chapter, an agency shall take into consideration--
``(1) the need to ensure that small business concerns are
appropriately represented with respect to the assignments
described in sections 3703 and 3704, respectively; and
``(2) how assignments described in section 3703 might best
be used to help meet the needs of the agency for the training
of employees in information technology management.
``Sec. 3703. Assignment of employees to private sector
organizations
``(a) In General.--An employee of an agency assigned to a
private sector organization under this chapter is deemed,
during the period of the assignment, to be on detail to a
regular work assignment in his agency.
``(b) Coordination With Chapter 81.--Notwithstanding any
other provision of law, an employee of an agency assigned to
a private sector organization under this chapter is entitled
to retain coverage, rights, and benefits under subchapter I
of chapter 81, and employment during the assignment is deemed
employment by the United States, except that, if the employee
or the employee's dependents receive from the private sector
organization any payment under an insurance policy for which
the premium is wholly paid by the private sector
organization, or other benefit of any kind on account of the
same injury or death, then, the amount of such payment or
benefit shall be credited against any compensation otherwise
payable under subchapter I of chapter 81.
``(c) Reimbursements.--The assignment of an employee to a
private sector organization under this chapter may be made
with or without reimbursement by the private sector
organization for the travel and transportation expenses to or
from the place of assignment, subject to the same terms and
conditions as apply with respect to an employee of a Federal
agency or a State or local government under section 3375, and
for the pay, or a part thereof, of the employee during
assignment. Any reimbursements shall be credited to the
appropriation of the agency used for paying the travel and
transportation expenses or pay.
``(d) Tort Liability; Supervision.--The Federal Tort Claims
Act and any other Federal tort liability statute apply to an
employee of an agency assigned to a private sector
organization under this chapter. The supervision of the
duties of an employee of an agency so assigned to a private
sector organization may be governed by an agreement between
the agency and the organization.
``(e) Small Business Concerns.--
``(1) In general.--The head of each agency shall take such
actions as may be necessary to ensure that, of the
assignments made under this chapter from such agency to
private sector organizations in each year, at least 20
percent are to small business concerns.
``(2) Definitions.--For purposes of this subsection--
``(A) the term `small business concern' means a business
concern that satisfies the definitions and standards
specified by the Administrator of the Small Business
Administration under section 3(a)(2) of the Small Business
Act (as from time to time amended by the Administrator);
``(B) the term `year' refers to the 12-month period
beginning on the date of the enactment of this chapter, and
each succeeding 12-month period in which any assignments
under this chapter may be made; and
``(C) the assignments `made' in a year are those commencing
in such year.
``(3) Reporting requirement.--An agency which fails to
comply with paragraph (1) in a year shall, within 90 days
after the end of such year, submit a report to the Committees
on Government Reform and Small Business of the House of
Representatives and the Committees on Governmental Affairs
and Small Business of the Senate. The report shall include--
``(A) the total number of assignments made under this
chapter from such agency to private sector organizations in
the year;
``(B) of that total number, the number (and percentage)
made to small business concerns; and
``(C) the reasons for the agency's noncompliance with
paragraph (1).
``(4) Exclusion.--This subsection shall not apply to an
agency in any year in which it makes fewer than 5 assignments
under this chapter to private sector organizations.
``Sec. 3704. Assignment of employees from private sector
organizations
``(a) In General.--An employee of a private sector
organization assigned to an agency under this chapter is
deemed, during the period of the assignment, to be on detail
to such agency.
``(b) Terms and Conditions.--An employee of a private
sector organization assigned to an agency under this
chapter--
``(1) may continue to receive pay and benefits from the
private sector organization from which he is assigned;
``(2) is deemed, notwithstanding subsection (a), to be an
employee of the agency for the purposes of--
``(A) chapter 73;
``(B) sections 201, 203, 205, 207, 208, 209, 603, 606, 607,
643, 654, 1905, and 1913 of title 18;
``(C) sections 1343, 1344, and 1349(b) of title 31;
``(D) the Federal Tort Claims Act and any other Federal
tort liability statute;
``(E) the Ethics in Government Act of 1978;
``(F) section 1043 of the Internal Revenue Code of 1986;
and
``(G) section 27 of the Office of Federal Procurement
Policy Act;
``(3) may not have access to any trade secrets or to any
other nonpublic information
[[Page H8970]]
which is of commercial value to the private sector
organization from which he is assigned; and
``(4) is subject to such regulations as the President may
prescribe.
The supervision of an employee of a private sector
organization assigned to an agency under this chapter may be
governed by agreement between the agency and the private
sector organization concerned. Such an assignment may be made
with or without reimbursement by the agency for the pay, or a
part thereof, of the employee during the period of
assignment, or for any contribution of the private sector
organization to employee benefit systems.
``(c) Coordination With Chapter 81.--An employee of a
private sector organization assigned to an agency under this
chapter who suffers disability or dies as a result of
personal injury sustained while performing duties during the
assignment shall be treated, for the purpose of subchapter I
of chapter 81, as an employee as defined by section 8101 who
had sustained the injury in the performance of duty, except
that, if the employee or the employee's dependents receive
from the private sector organization any payment under an
insurance policy for which the premium is wholly paid by the
private sector organization, or other benefit of any kind on
account of the same injury or death, then, the amount of such
payment or benefit shall be credited against any compensation
otherwise payable under subchapter I of chapter 81.
``(d) Prohibition Against Charging Certain Costs to the
Federal Government.--A private sector organization may not
charge the Federal Government, as direct or indirect costs
under a Federal contract, the costs of pay or benefits paid
by the organization to an employee assigned to an agency
under this chapter for the period of the assignment.
``Sec. 3705. Application to Office of the Chief Technology
Officer of the District of Columbia
``(a) In General.--The Chief Technology Officer of the
District of Columbia may arrange for the assignment of an
employee of the Office of the Chief Technology Officer to a
private sector organization, or an employee of a private
sector organization to such Office, in the same manner as the
head of an agency under this chapter.
``(b) Terms and Conditions.--An assignment made pursuant to
subsection (a) shall be subject to the same terms and
conditions as an assignment made by the head of an agency
under this chapter, except that in applying such terms and
conditions to an assignment made pursuant to subsection (a),
any reference in this chapter to a provision of law or
regulation of the United States shall be deemed to be a
reference to the applicable provision of law or regulation of
the District of Columbia, including the applicable provisions
of the District of Columbia Government Comprehensive Merit
Personnel Act of 1978 (sec. 1-601.01 et seq., D.C. Official
Code) and section 601 of the District of Columbia Campaign
Finance Reform and Conflict of Interest Act (sec. 1-1106.01,
D.C. Official Code).
``(c) Definition.--For purposes of this section, the term
`Office of the Chief Technology Officer' means the office
established in the executive branch of the government of the
District of Columbia under the Office of the Chief Technology
Officer Establishment Act of 1998 (sec. 1-1401 et seq., D.C.
Official Code).
``Sec. 3706. Reporting requirement
``(a) In General.--The Office of Personnel Management
shall, not later than April 30 and October 31 of each year,
prepare and submit to the Committee on Government Reform of
the House of Representatives and the Committee on
Governmental Affairs of the Senate a semiannual report
summarizing the operation of this chapter during the
immediately preceding 6-month period ending on March 31 and
September 30, respectively.
``(b) Content.--Each report shall include, with respect to
the 6-month period to which such report relates--
``(1) the total number of individuals assigned to, and the
total number of individuals assigned from, each agency during
such period;
``(2) a brief description of each assignment included under
paragraph (1), including--
``(A) the name of the assigned individual, as well as the
private sector organization and the agency (including the
specific bureau or other agency component) to or from which
such individual was assigned;
``(B) the respective positions to and from which the
individual was assigned, including the duties and
responsibilities and the pay grade or level associated with
each; and
``(C) the duration and objectives of the individual's
assignment; and
``(3) such other information as the Office considers
appropriate.
``(c) Publication.--A copy of each report submitted under
subsection (a)--
``(1) shall be published in the Federal Register; and
``(2) shall be made publicly available on the Internet.
``(d) Agency Cooperation.--On request of the Office,
agencies shall furnish such information and reports as the
Office may require in order to carry out this section.
``Sec. 3707. Regulations
``The Director of the Office of Personnel Management shall
prescribe regulations for the administration of this
chapter.''.
(2) Report.--Not later than 4 years after the date of the
enactment of this Act, the General Accounting Office shall
prepare and submit to the Committee on Government Reform of
the House of Representatives and the Committee on
Governmental Affairs of the Senate a report on the operation
of chapter 37 of title 5, United States Code (as added by
this subsection). Such report shall include--
(A) an evaluation of the effectiveness of the program
established by such chapter; and
(B) a recommendation as to whether such program should be
continued (with or without modification) or allowed to lapse.
(3) Clerical Amendment.--The analysis for part III of title
5, United States Code, is amended by inserting after the item
relating to chapter 35 the following:
``37. Information Technology Exchange Program...................3701''.
(d) Ethics Provisions.--
(1) One-year restriction on certain communications.--
Section 207(c)(2)(A) of title 18, United States Code, is
amended--
(A) by striking ``or'' at the end of clause (iii);
(B) by striking the period at the end of clause (iv) and
inserting ``; or''; and
(C) by adding at the end the following:
``(v) assigned from a private sector organization to an
agency under chapter 37 of title 5.''.
(2) Disclosure of confidential information.--Section 1905
of title 18, United States Code, is amended by inserting ``or
being an employee of a private sector organization who is or
was assigned to an agency under chapter 37 of title 5,''
after ``(15 U.S.C. 1311-1314),''.
(3) Contract advice.--Section 207 of title 18, United
States Code, is amended by adding at the end the following:
``(l) Contract Advice by Former Details.--Whoever, being an
employee of a private sector organization assigned to an
agency under chapter 37 of title 5, within one year after the
end of that assignment, knowingly represents or aids,
counsels, or assists in representing any other person (except
the United States) in connection with any contract with that
agency shall be punished as provided in section 216 of this
title.''.
(4) Restriction on disclosure of procurement information.--
Section 27 of the Office of Federal Procurement Policy Act
(41 U.S.C. 423) is amended in subsection (a)(1) by adding at
the end the following new sentence: ``In the case of an
employee of a private sector organization assigned to an
agency under chapter 37 of title 5, United States Code, in
addition to the restriction in the preceding sentence, such
employee shall not, other than as provided by law, knowingly
disclose contractor bid or proposal information or source
selection information during the three-year period after the
end of the assignment of such employee.''.
(e) Report on Existing Exchange Programs.--
(1) Exchange program defined.--For purposes of this
subsection, the term ``exchange program'' means an executive
exchange program, the program under subchapter VI of chapter
33 of title 5, United States Code, and any other program
which allows for--
(A) the assignment of employees of the Federal Government
to non-Federal employers;
(B) the assignment of employees of non-Federal employers to
the Federal Government; or
(C) both.
(2) Reporting requirement.--Not later than 1 year after the
date of the enactment of this Act, the Office of Personnel
Management shall prepare and submit to the Committee on
Government Reform of the House of Representatives and the
Committee on Governmental Affairs of the Senate a report
identifying all existing exchange programs.
(3) Specific information.--The report shall, for each such
program, include--
(A) a brief description of the program, including its size,
eligibility requirements, and terms or conditions for
participation;
(B) specific citation to the law or other authority under
which the program is established;
(C) the names of persons to contact for more information,
and how they may be reached; and
(D) any other information which the Office considers
appropriate.
(f) Report on the Establishment of a Governmentwide
Information Technology Training Program.--
(1) In general.--Not later January 1, 2003, the Office of
Personnel Management, in consultation with the Chief
Information Officers Council and the Administrator of General
Services, shall review and submit to the Committee on
Government Reform of the House of Representatives and the
Committee on Governmental Affairs of the Senate a written
report on the following:
(A) The adequacy of any existing information technology
training programs available to Federal employees on a
Governmentwide basis.
(B)(i) If one or more such programs already exist,
recommendations as to how they might be improved.
(ii) If no such program yet exists, recommendations as to
how such a program might be designed and established.
(C) With respect to any recommendations under subparagraph
(B), how the program under chapter 37 of title 5, United
States Code, might be used to help carry them out.
[[Page H8971]]
(2) Cost estimate.--The report shall, for any recommended
program (or improvements) under paragraph (1)(B), include the
estimated costs associated with the implementation and
operation of such program as so established (or estimated
difference in costs of any such program as so improved).
(g) Technical and Conforming Amendments.--
(1) Amendments to title 5, united states code.--Title 5,
United States Code, is amended--
(A) in section 3111, by adding at the end the following:
``(d) Notwithstanding section 1342 of title 31, the head of
an agency may accept voluntary service for the United States
under chapter 37 of this title and regulations of the Office
of Personnel Management.'';
(B) in section 4108, by striking subsection (d); and
(C) in section 7353(b), by adding at the end the following:
``(4) Nothing in this section precludes an employee of a
private sector organization, while assigned to an agency
under chapter 37, from continuing to receive pay and benefits
from such organization in accordance with such chapter.''.
(2) Amendment to title 18, united states code.--Section 209
of title 18, United States Code, is amended by adding at the
end the following:
``(g)(1) This section does not prohibit an employee of a
private sector organization, while assigned to an agency
under chapter 37 of title 5, from continuing to receive pay
and benefits from such organization in accordance with such
chapter.
``(2) For purposes of this subsection, the term `agency'
means an agency (as defined by section 3701 of title 5) and
the Office of the Chief Technology Officer of the District of
Columbia.''.
(3) Other amendments.--Section 125(c)(1) of Public Law 100-
238 (5 U.S.C. 8432 note) is amended--
(A) in subparagraph (B), by striking ``or'' at the end;
(B) in subparagraph (C), by striking ``and'' at the end and
inserting ``or''; and
(C) by adding at the end the following:
``(D) an individual assigned from a Federal agency to a
private sector organization under chapter 37 of title 5,
United States Code; and''.
SEC. 210. SHARE-IN-SAVINGS INITIATIVES.
(a) Defense Contracts.--(1) Chapter 137 of title 10, United
States Code, is amended by adding at the end the following
new section:
``Sec. 2332. Share-in-savings contracts
``(a) Authority To Enter Into Share-in-Savings Contracts.--
(1) The head of an agency may enter into a share-in-savings
contract for information technology (as defined in section
11101(6) of title 40) in which the Government awards a
contract to improve mission-related or administrative
processes or to accelerate the achievement of its mission and
share with the contractor in savings achieved through
contract performance.
``(2)(A) Except as provided in subparagraph (B), a share-
in-savings contract shall be awarded for a period of not more
than five years.
``(B) A share-in-savings contract may be awarded for a
period greater than five years, but not more than 10 years,
if the head of the agency determines in writing prior to
award of the contract that--
``(i) the level of risk to be assumed and the investment to
be undertaken by the contractor is likely to inhibit the
government from obtaining the needed information technology
competitively at a fair and reasonable price if the contract
is limited in duration to a period of five years or less; and
``(ii) usage of the information technology to be acquired
is likely to continue for a period of time sufficient to
generate reasonable benefit for the government.
``(3) Contracts awarded pursuant to the authority of this
section shall, to the maximum extent practicable, be
performance-based contracts that identify objective outcomes
and contain performance standards that will be used to
measure achievement and milestones that must be met before
payment is made.
``(4) Contracts awarded pursuant to the authority of this
section shall include a provision containing a quantifiable
baseline that is to be the basis upon which a savings share
ratio is established that governs the amount of payment a
contractor is to receive under the contract. Before
commencement of performance of such a contract, the senior
procurement executive of the agency shall determine in
writing that the terms of the provision are quantifiable and
will likely yield value to the Government.
``(5)(A) The head of the agency may retain savings realized
through the use of a share-in-savings contract under this
section that are in excess of the total amount of savings
paid to the contractor under the contract, but may not retain
any portion of such savings that is attributable to a
decrease in the number of civilian employees of the Federal
Government performing the function. Except as provided in
subparagraph (B), savings shall be credited to the
appropriation or fund against which charges were made to
carry out the contract and shall be used for information
technology.
``(B) Amounts retained by the agency under this subsection
shall--
``(i) without further appropriation, remain available until
expended; and
``(ii) be applied first to fund any contingent liabilities
associated with share-in-savings procurements that are not
fully funded.
``(b) Cancellation and Termination.--(1) If funds are not
made available for the continuation of a share-in-savings
contract entered into under this section in a subsequent
fiscal year, the contract shall be canceled or terminated.
The costs of cancellation or termination may be paid out of--
``(A) appropriations available for the performance of the
contract;
``(B) appropriations available for acquisition of the
information technology procured under the contract, and not
otherwise obligated; or
``(C) funds subsequently appropriated for payments of costs
of cancellation or termination, subject to the limitations in
paragraph (3).
``(2) The amount payable in the event of cancellation or
termination of a share-in-savings contract shall be
negotiated with the contractor at the time the contract is
entered into.
``(3)(A) Subject to subparagraph (B), the head of an agency
may enter into share-in-savings contracts under this section
in any given fiscal year even if funds are not made
specifically available for the full costs of cancellation or
termination of the contract if funds are available and
sufficient to make payments with respect to the first fiscal
year of the contract and the following conditions are met
regarding the funding of cancellation and termination
liability:
``(i) The amount of unfunded contingent liability for the
contract does not exceed the lesser of--
``(I) 25 percent of the estimated costs of a cancellation
or termination; or
``(II) $5,000,000.
``(ii) Unfunded contingent liability in excess of
$1,000,000 has been approved by the Director of the Office of
Management and Budget or the Director's designee.
``(B) The aggregate number of share-in-savings contracts
that may be entered into under subparagraph (A) by all
agencies to which this chapter applies in a fiscal year may
not exceed 5 in each of fiscal years 2003, 2004, and 2005.
``(c) Definitions.--In this section:
``(1) The term `contractor' means a private entity that
enters into a contract with an agency.
``(2) The term `savings' means--
``(A) monetary savings to an agency; or
``(B) savings in time or other benefits realized by the
agency, including enhanced revenues (other than enhanced
revenues from the collection of fees, taxes, debts, claims,
or other amounts owed the Federal Government).
``(3) The term `share-in-savings contract' means a contract
under which--
``(A) a contractor provides solutions for--
``(i) improving the agency's mission-related or
administrative processes; or
``(ii) accelerating the achievement of agency missions; and
``(B) the head of the agency pays the contractor an amount
equal to a portion of the savings derived by the agency
from--
``(i) any improvements in mission-related or administrative
processes that result from implementation of the solution; or
``(ii) acceleration of achievement of agency missions.
``(d) Termination.--No share-in-savings contracts may be
entered into under this section after September 30, 2005.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end of the following new item:
``2332. Share-in-savings contracts.''.
(b) Other Contracts.--Title III of the Federal Property and
Administrative Services Act of 1949 is amended by adding at
the end the following:
``SEC. 317. SHARE-IN-SAVINGS CONTRACTS.
``(a) Authority To Enter Into Share-in-Savings Contracts.--
(1) The head of an executive agency may enter into a share-
in-savings contract for information technology (as defined in
section 11101(6) of title 40, United States Code) in which
the Government awards a contract to improve mission-related
or administrative processes or to accelerate the achievement
of its mission and share with the contractor in savings
achieved through contract performance.
``(2)(A) Except as provided in subparagraph (B), a share-
in-savings contract shall be awarded for a period of not more
than five years.
``(B) A share-in-savings contract may be awarded for a
period greater than five years, but not more than 10 years,
if the head of the agency determines in writing prior to
award of the contract that--
``(i) the level of risk to be assumed and the investment to
be undertaken by the contractor is likely to inhibit the
government from obtaining the needed information technology
competitively at a fair and reasonable price if the contract
is limited in duration to a period of five years or less; and
``(ii) usage of the information technology to be acquired
is likely to continue for a period of time sufficient to
generate reasonable benefit for the government.
``(3) Contracts awarded pursuant to the authority of this
section shall, to the maximum extent practicable, be
performance-based contracts that identify objective outcomes
and contain performance standards that will be used to
measure achievement and milestones that must be met before
payment is made.
``(4) Contracts awarded pursuant to the authority of this
section shall include a provision containing a quantifiable
baseline that
[[Page H8972]]
is to be the basis upon which a savings share ratio is
established that governs the amount of payment a contractor
is to receive under the contract. Before commencement of
performance of such a contract, the senior procurement
executive of the agency shall determine in writing that the
terms of the provision are quantifiable and will likely yield
value to the Government.
``(5)(A) The head of the agency may retain savings realized
through the use of a share-in-savings contract under this
section that are in excess of the total amount of savings
paid to the contractor under the contract, but may not retain
any portion of such savings that is attributable to a
decrease in the number of civilian employees of the Federal
Government performing the function. Except as provided in
subparagraph (B), savings shall be credited to the
appropriation or fund against which charges were made to
carry out the contract and shall be used for information
technology.
``(B) Amounts retained by the agency under this subsection
shall--
``(i) without further appropriation, remain available until
expended; and
``(ii) be applied first to fund any contingent liabilities
associated with share-in-savings procurements that are not
fully funded.
``(b) Cancellation and Termination.--(1) If funds are not
made available for the continuation of a share-in-savings
contract entered into under this section in a subsequent
fiscal year, the contract shall be canceled or terminated.
The costs of cancellation or termination may be paid out of--
``(A) appropriations available for the performance of the
contract;
``(B) appropriations available for acquisition of the
information technology procured under the contract, and not
otherwise obligated; or
``(C) funds subsequently appropriated for payments of costs
of cancellation or termination, subject to the limitations in
paragraph (3).
``(2) The amount payable in the event of cancellation or
termination of a share-in-savings contract shall be
negotiated with the contractor at the time the contract is
entered into.
``(3)(A) Subject to subparagraph (B), the head of an
executive agency may enter into share-in-savings contracts
under this section in any given fiscal year even if funds are
not made specifically available for the full costs of
cancellation or termination of the contract if funds are
available and sufficient to make payments with respect to the
first fiscal year of the contract and the following
conditions are met regarding the funding of cancellation and
termination liability:
``(i) The amount of unfunded contingent liability for the
contract does not exceed the lesser of--
``(I) 25 percent of the estimated costs of a cancellation
or termination; or
``(II) $5,000,000.
``(ii) Unfunded contingent liability in excess of
$1,000,000 has been approved by the Director of the Office of
Management and Budget or the Director's designee.
``(B) The aggregate number of share-in-savings contracts
that may be entered into under subparagraph (A) by all
executive agencies to which this chapter applies in a fiscal
year may not exceed 5 in each of fiscal years 2003, 2004, and
2005.
``(c) Definitions.--In this section:
``(1) The term `contractor' means a private entity that
enters into a contract with an agency.
``(2) The term `savings' means--
``(A) monetary savings to an agency; or
``(B) savings in time or other benefits realized by the
agency, including enhanced revenues (other than enhanced
revenues from the collection of fees, taxes, debts, claims,
or other amounts owed the Federal Government).
``(3) The term `share-in-savings contract' means a contract
under which--
``(A) a contractor provides solutions for--
``(i) improving the agency's mission-related or
administrative processes; or
``(ii) accelerating the achievement of agency missions; and
``(B) the head of the agency pays the contractor an amount
equal to a portion of the savings derived by the agency
from--
``(i) any improvements in mission-related or administrative
processes that result from implementation of the solution; or
``(ii) acceleration of achievement of agency missions.
``(d) Termination.--No share-in-savings contracts may be
entered into under this section after September 30, 2005.''.
(c) Development of Incentives.--The Director of the Office
of Management and Budget shall, in consultation with the
Committee on Governmental Affairs of the Senate, the
Committee on Government Reform of the House of
Representatives, and executive agencies, develop techniques
to permit an executive agency to retain a portion of the
savings (after payment of the contractor's share of the
savings) derived from share-in-savings contracts as funds are
appropriated to the agency in future fiscal years.
(d) Regulations.--Not later than 270 days after the date of
the enactment of this Act, the Federal Acquisition Regulation
shall be revised to implement the provisions enacted by this
section. Such revisions shall--
(1) provide for the use of competitive procedures in the
selection and award of share-in-savings contracts to--
(A) ensure the contractor's share of savings reflects the
risk involved and market conditions; and
(B) otherwise yield greatest value to the government; and
(2) allow appropriate regulatory flexibility to facilitate
the use of share-in-savings contracts by executive agencies,
including the use of innovative provisions for technology
refreshment and nonstandard Federal Acquisition Regulation
contract clauses.
(e) Additional Guidance.--The Administrator of General
Services shall--
(1) identify potential opportunities for the use of share-
in-savings contracts; and
(2) in consultation with the Director of the Office of
Management and Budget, provide guidance to executive agencies
for determining mutually beneficial savings share ratios and
baselines from which savings may be measured.
(f) OMB Report to Congress.--In consultation with executive
agencies, the Director of the Office of Management and Budget
shall, not later than 2 years after the date of the enactment
of this Act, submit to Congress a report containing--
(1) a description of the number of share-in-savings
contracts entered into by each executive agency under by this
section and the amendments made by this section, and, for
each contract identified--
(A) the information technology acquired;
(B) the total amount of payments made to the contractor;
and
(C) the total amount of savings or other measurable
benefits realized;
(2) a description of the ability of agencies to determine
the baseline costs of a project against which savings can be
measured; and
(3) any recommendations, as the Director deems appropriate,
regarding additional changes in law that may be necessary to
ensure effective use of share-in-savings contracts by
executive agencies.
(g) GAO Report to Congress.--The Comptroller General shall,
not later than 6 months after the report required under
subsection (f) is submitted to Congress, conduct a review of
that report and submit to Congress a report containing--
(1) the results of the review;
(2) an independent assessment by the Comptroller General of
the effectiveness of the use of share-in-savings contracts in
improving the mission-related and administrative processes of
the executive agencies and the achievement of agency
missions; and
(3) a recommendation on whether the authority to enter into
share-in-savings contracts should be continued.
(h) Repeal of Share-in-Savings Pilot Program.--
(1) Repeal.--Section 11521 of title 40, United States Code,
is repealed.
(2) Conforming amendments to pilot program authority.--
(A) Section 11501 of title 40, United States Code, is
amended--
(i) in the section heading, by striking ``PROGRAMS'' and
inserting ``PROGRAM'';
(ii) in subsection (a)(1), by striking ``conduct pilot
programs'' and inserting ``conduct a pilot program pursuant
to the requirements of section 11521 of this title'';
(iii) in subsection (a)(2), by striking ``each pilot
program'' and inserting ``the pilot program'';
(iv) in subsection (b), by striking ``Limitations.--'' and
all that follows through ``$750,000,000.'' and inserting the
following: ``Limitation on Amount.--The total amount
obligated for contracts entered into under the pilot program
conducted under this chapter may not exceed $375,000,000.'';
and
(v) in subsection (c)(1), by striking ``a pilot'' and
inserting ``the pilot''.
(B) The following provisions of chapter 115 of such title
are each amended by striking ``a pilot'' each place it
appears and inserting ``the pilot'':
(i) Section 11502(a).
(ii) Section 11502(b).
(iii) Section 11503(a).
(iv) Section 11504.
(C) Section 11505 of such chapter is amended by striking
``programs'' and inserting ``program''.
(3) Additional conforming amendments.--
(A) Section 11522 of title 40, United States Code, is
redesignated as section 11521.
(B) The chapter heading for chapter 115 of such title is
amended by striking ``PROGRAMS'' and inserting ``PROGRAM''.
(C) The subchapter heading for subchapter I and for
subchapter II of such chapter are each amended by striking
``PROGRAMS'' and inserting ``PROGRAM''.
(D) The item relating to subchapter I in the table of
sections at the beginning of such chapter is amended to read
as follows:
``SUBCHAPTER I--CONDUCT OF PILOT PROGRAM''.
(E) The item relating to subchapter II in the table of
sections at the beginning of such chapter is amended to read
as follows:
``SUBCHAPTER II--SPECIFIC PILOT PROGRAM''.
(F) The item relating to section 11501 in the table of
sections at the beginning of such is amended by striking
``programs'' and inserting ``program''.
(G) The table of sections at the beginning of such chapter
is amended by striking the item relating to section 11521 and
redesignating the item relating to section 11522 as section
11521.
(H) The item relating to chapter 115 in the table of
chapters for subtitle III of title 40, United States Code, is
amended to read as follows:
[[Page H8973]]
``115. INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM....11501''.....
(i) Definitions.--In this section, the terms
``contractor'', ``savings'', and ``share-in-savings
contract'' have the meanings given those terms in section 317
of the Federal Property and Administrative Services Act of
1949 (as added by subsection (b)).
SEC. 211. AUTHORIZATION FOR ACQUISITION OF INFORMATION
TECHNOLOGY BY STATE AND LOCAL GOVERNMENTS
THROUGH FEDERAL SUPPLY SCHEDULES.
(a) Authority To Use Certain Supply Schedules.--Section 502
of title 40, United States Code, is amended by adding at the
end the following new subsection:
``(c) Use of Certain Supply Schedules.--
``(1) In general.--The Administrator may provide for the
use by State or local governments of Federal supply schedules
of the General Services Administration for automated data
processing equipment (including firmware), software,
supplies, support equipment, and services (as contained in
Federal supply classification code group 70).
``(2) Voluntary use.--In any case of the use by a State or
local government of a Federal supply schedule pursuant to
paragraph (1), participation by a firm that sells to the
Federal Government through the supply schedule shall be
voluntary with respect to a sale to the State or local
government through such supply schedule.
``(3) Definitions.--In this subsection:
``(A) The term `State or local government' includes any
State, local, regional, or tribal government, or any
instrumentality thereof (including any local educational
agency or institution of higher education).
``(B) The term `tribal government' means--
``(i) the governing body of any Indian tribe, band, nation,
or other organized group or community located in the
continental United States (excluding the State of Alaska)
that is recognized as eligible for the special programs and
services provided by the United States to Indians because of
their status as Indians, and
``(ii) any Alaska Native regional or village corporation
established pursuant to the Alaska Native Claims Settlement
Act (43 U.S.C. 1601 et seq.).
``(C) The term `local educational agency' has the meaning
given that term in section 8013 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7713).
``(D) The term `institution of higher education' has the
meaning given that term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).''.
(b) Procedures.--Not later than 30 days after the date of
the enactment of this Act, the Administrator of General
Services shall establish procedures to implement section
501(c) of title 40, United States Code (as added by
subsection (a)).
(c) Report.--Not later than December 31, 2004, the
Administrator shall submit to the Committee on Government
Reform of the House of Representatives and the Committee on
Governmental Affairs of the Senate a report on the
implementation and effects of the amendment made by
subsection (a).
SEC. 212. INTEGRATED REPORTING STUDY AND PILOT PROJECTS.
(a) Purposes.--The purposes of this section are to--
(1) enhance the interoperability of Federal information
systems;
(2) assist the public, including the regulated community,
in electronically submitting information to agencies under
Federal requirements, by reducing the burden of duplicate
collection and ensuring the accuracy of submitted
information; and
(3) enable any person to integrate and obtain similar
information held by 1 or more agencies under 1 or more
Federal requirements without violating the privacy rights of
an individual.
(b) Definitions.--In this section, the term--
(1) ``agency'' means an Executive agency as defined under
section 105 of title 5, United States Code; and
(2) ``person'' means any individual, trust, firm, joint
stock company, corporation (including a government
corporation), partnership, association, State, municipality,
commission, political subdivision of a State, interstate
body, or agency or component of the Federal Government.
(c) Report.--
(1) In general.--Not later than 3 years after the date of
enactment of this Act, the Director shall oversee a study, in
consultation with agencies, the regulated community, public
interest organizations, and the public, and submit a report
to the Committee on Governmental Affairs of the Senate and
the Committee on Government Reform of the House of
Representatives on progress toward integrating Federal
information systems across agencies.
(2) Contents.--The report under this section shall--
(A) address the integration of data elements used in the
electronic collection of information within databases
established under Federal statute without reducing the
quality, accessibility, scope, or utility of the information
contained in each database;
(B) address the feasibility of developing, or enabling the
development of, software, including Internet-based tools, for
use by reporting persons in assembling, documenting, and
validating the accuracy of information electronically
submitted to agencies under nonvoluntary, statutory, and
regulatory requirements;
(C) address the feasibility of developing a distributed
information system involving, on a voluntary basis, at least
2 agencies, that--
(i) provides consistent, dependable, and timely public
access to the information holdings of 1 or more agencies, or
some portion of such holdings, without requiring public users
to know which agency holds the information; and
(ii) allows the integration of public information held by
the participating agencies;
(D) address the feasibility of incorporating other elements
related to the purposes of this section at the discretion of
the Director; and
(E) make any recommendations that the Director deems
appropriate on the use of integrated reporting and
information systems, to reduce the burden on reporting and
strengthen public access to databases within and across
agencies.
(d) Pilot Projects To Encourage Integrated Collection and
Management of Data and Interoperability of Federal
Information Systems.--
(1) In general.--In order to provide input to the study
under subsection (c), the Director shall designate, in
consultation with agencies, a series of no more than 5 pilot
projects that integrate data elements. The Director shall
consult with agencies, the regulated community, public
interest organizations, and the public on the implementation
of the pilot projects.
(2) Goals of pilot projects.--
(A) In general.--Each goal described under subparagraph (B)
shall be addressed by at least 1 pilot project each.
(B) Goals.--The goals under this paragraph are to--
(i) reduce information collection burdens by eliminating
duplicative data elements within 2 or more reporting
requirements;
(ii) create interoperability between or among public
databases managed by 2 or more agencies using technologies
and techniques that facilitate public access; and
(iii) develop, or enable the development of, software to
reduce errors in electronically submitted information.
(3) Input.--Each pilot project shall seek input from users
on the utility of the pilot project and areas for
improvement. To the extent practicable, the Director shall
consult with relevant agencies and State, tribal, and local
governments in carrying out the report and pilot projects
under this section.
(e) Protections.--The activities authorized under this
section shall afford protections for--
(1) confidential business information consistent with
section 552(b)(4) of title 5, United States Code, and other
relevant law;
(2) personal privacy information under sections 552(b) (6)
and (7)(C) and 552a of title 5, United States Code, and other
relevant law;
(3) other information consistent with section 552(b)(3) of
title 5, United States Code, and other relevant law; and
(4) confidential statistical information collected under a
confidentiality pledge, solely for statistical purposes,
consistent with the Office of Management and Budget's Federal
Statistical Confidentiality Order, and other relevant law.
SEC. 213. COMMUNITY TECHNOLOGY CENTERS.
(a) Purposes.--The purposes of this section are to--
(1) study and enhance the effectiveness of community
technology centers, public libraries, and other institutions
that provide computer and Internet access to the public; and
(2) promote awareness of the availability of on-line
government information and services, to users of community
technology centers, public libraries, and other public
facilities that provide access to computer technology and
Internet access to the public.
(b) Study and Report.--Not later than 2 years after the
effective date of this title, the Administrator shall--
(1) ensure that a study is conducted to evaluate the best
practices of community technology centers that have received
Federal funds; and
(2) submit a report on the study to--
(A) the Committee on Governmental Affairs of the Senate;
(B) the Committee on Health, Education, Labor, and Pensions
of the Senate;
(C) the Committee on Government Reform of the House of
Representatives; and
(D) the Committee on Education and the Workforce of the
House of Representatives.
(c) Contents.--The report under subsection (b) may
consider--
(1) an evaluation of the best practices being used by
successful community technology centers;
(2) a strategy for--
(A) continuing the evaluation of best practices used by
community technology centers; and
(B) establishing a network to share information and
resources as community technology centers evolve;
(3) the identification of methods to expand the use of best
practices to assist community technology centers, public
libraries, and other institutions that provide computer and
Internet access to the public;
(4) a database of all community technology centers that
have received Federal funds, including--
(A) each center's name, location, services provided,
director, other points of contact, number of individuals
served; and
(B) other relevant information;
(5) an analysis of whether community technology centers
have been deployed effectively in urban and rural areas
throughout the Nation; and
[[Page H8974]]
(6) recommendations of how to--
(A) enhance the development of community technology
centers; and
(B) establish a network to share information and resources.
(d) Cooperation.--All agencies that fund community
technology centers shall provide to the Administrator any
information and assistance necessary for the completion of
the study and the report under this section.
(e) Assistance.--
(1) In general.--The Administrator, in consultation with
the Secretary of Education, shall work with other relevant
Federal agencies, and other interested persons in the private
and nonprofit sectors to--
(A) assist in the implementation of recommendations; and
(B) identify other ways to assist community technology
centers, public libraries, and other institutions that
provide computer and Internet access to the public.
(2) Types of assistance.--Assistance under this subsection
may include--
(A) contribution of funds;
(B) donations of equipment, and training in the use and
maintenance of the equipment; and
(C) the provision of basic instruction or training material
in computer skills and Internet usage.
(f) Online Tutorial.--
(1) In general.--The Administrator, in consultation with
the Secretary of Education, the Director of the Institute of
Museum and Library Services, other relevant agencies, and the
public, shall develop an online tutorial that--
(A) explains how to access Government information and
services on the Internet; and
(B) provides a guide to available online resources.
(2) Distribution.--The Administrator, with assistance from
the Secretary of Education, shall distribute information on
the tutorial to community technology centers, public
libraries, and other institutions that afford Internet access
to the public.
(g) Promotion of Community Technology Centers.--The
Administrator, with assistance from the Department of
Education and in consultation with other agencies and
organizations, shall promote the availability of community
technology centers to raise awareness within each community
where such a center is located.
(h) Authorization of Appropriations.--There are authorized
to be appropriated for the study of best practices at
community technology centers, for the development and
dissemination of the online tutorial, and for the promotion
of community technology centers under this section--
(1) $2,000,000 in fiscal year 2003;
(2) $2,000,000 in fiscal year 2004; and
(3) such sums as are necessary in fiscal years 2005 through
2007.
SEC. 214. ENHANCING CRISIS MANAGEMENT THROUGH ADVANCED
INFORMATION TECHNOLOGY.
(a) Purpose.--The purpose of this section is to improve how
information technology is used in coordinating and
facilitating information on disaster preparedness, response,
and recovery, while ensuring the availability of such
information across multiple access channels.
(b) In General.--
(1) Study on enhancement of crisis response.--Not later
than 90 days after the date of enactment of this Act, the
Administrator, in consultation with the Federal Emergency
Management Agency, shall ensure that a study is conducted on
using information technology to enhance crisis preparedness,
response, and consequence management of natural and manmade
disasters.
(2) Contents.--The study under this subsection shall
address--
(A) a research and implementation strategy for effective
use of information technology in crisis response and
consequence management, including the more effective use of
technologies, management of information technology research
initiatives, and incorporation of research advances into the
information and communications systems of--
(i) the Federal Emergency Management Agency; and
(ii) other Federal, State, and local agencies responsible
for crisis preparedness, response, and consequence
management; and
(B) opportunities for research and development on enhanced
technologies into areas of potential improvement as
determined during the course of the study.
(3) Report.--Not later than 2 years after the date on which
a contract is entered into under paragraph (1), the
Administrator shall submit a report on the study, including
findings and recommendations to--
(A) the Committee on Governmental Affairs of the Senate;
and
(B) the Committee on Government Reform of the House of
Representatives.
(4) Interagency cooperation.--Other Federal departments and
agencies with responsibility for disaster relief and
emergency assistance shall fully cooperate with the
Administrator in carrying out this section.
(5) Authorization of appropriations.--There are authorized
to be appropriated for research under this subsection, such
sums as are necessary for fiscal year 2003.
(c) Pilot Projects.--Based on the results of the research
conducted under subsection (b), the Administrator, in
consultation with the Federal Emergency Management Agency,
shall initiate pilot projects or report to Congress on other
activities that further the goal of maximizing the utility of
information technology in disaster management. The
Administrator shall cooperate with other relevant agencies,
and, if appropriate, State, local, and tribal governments, in
initiating such pilot projects.
SEC. 215. DISPARITIES IN ACCESS TO THE INTERNET.
(a) Study and Report.--
(1) Study.--Not later than 90 days after the date of
enactment of this Act, the Administrator of General Services
shall request that the National Academy of Sciences, acting
through the National Research Council, enter into a contract
to conduct a study on disparities in Internet access for
online Government services.
(2) Report.--Not later than 2 years after the date of
enactment of this Act, the Administrator of General Services
shall submit to the Committee on Governmental Affairs of the
Senate and the Committee on Government Reform of the House of
Representatives a final report of the study under this
section, which shall set forth the findings, conclusions, and
recommendations of the National Research Council.
(b) Contents.--The report under subsection (a) shall
include a study of--
(1) how disparities in Internet access influence the
effectiveness of online Government services, including a
review of--
(A) the nature of disparities in Internet access;
(B) the affordability of Internet service;
(C) the incidence of disparities among different groups
within the population; and
(D) changes in the nature of personal and public Internet
access that may alleviate or aggravate effective access to
online Government services;
(2) how the increase in online Government services is
influencing the disparities in Internet access and how
technology development or diffusion trends may offset such
adverse influences; and
(3) related societal effects arising from the interplay of
disparities in Internet access and the increase in online
Government services.
(c) Recommendations.--The report shall include
recommendations on actions to ensure that online Government
initiatives shall not have the unintended result of
increasing any deficiency in public access to Government
services.
(d) Authorization of Appropriations.--There are authorized
to be appropriated $950,000 in fiscal year 2003 to carry out
this section.
SEC. 216. COMMON PROTOCOLS FOR GEOGRAPHIC INFORMATION
SYSTEMS.
(a) Purposes.--The purposes of this section are to--
(1) reduce redundant data collection and information; and
(2) promote collaboration and use of standards for
government geographic information.
(b) Definition.--In this section, the term ``geographic
information'' means information systems that involve
locational data, such as maps or other geospatial information
resources.
(c) In General.--
(1) Common protocols.--The Administrator, in consultation
with the Secretary of the Interior, working with the Director
and through an interagency group, and working with private
sector experts, State, local, and tribal governments,
commercial and international standards groups, and other
interested parties, shall facilitate the development of
common protocols for the development, acquisition,
maintenance, distribution, and application of geographic
information. If practicable, the Administrator shall
incorporate intergovernmental and public private geographic
information partnerships into efforts under this subsection.
(2) Interagency group.--The interagency group referred to
under paragraph (1) shall include representatives of the
National Institute of Standards and Technology and other
agencies.
(d) Director.--The Director shall oversee--
(1) the interagency initiative to develop common protocols;
(2) the coordination with State, local, and tribal
governments, public private partnerships, and other
interested persons on effective and efficient ways to align
geographic information and develop common protocols; and
(3) the adoption of common standards relating to the
protocols.
(e) Common Protocols.--The common protocols shall be
designed to--
(1) maximize the degree to which unclassified geographic
information from various sources can be made electronically
compatible and accessible; and
(2) promote the development of interoperable geographic
information systems technologies that shall--
(A) allow widespread, low-cost use and sharing of
geographic data by Federal agencies, State, local, and tribal
governments, and the public; and
(B) enable the enhancement of services using geographic
data.
(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section, for each of the fiscal years 2003 through 2007.
TITLE III--INFORMATION SECURITY
SEC. 301. INFORMATION SECURITY.
(a) Short Title.--This title may be cited as the ``Federal
Information Security Management Act of 2002''.
(b) Information Security.--
(1) In general.--Chapter 35 of title 44, United States
Code, is amended by adding at the end the following new
subchapter:
[[Page H8975]]
``SUBCHAPTER III--INFORMATION SECURITY
``Sec. 3541. Purposes
``The purposes of this subchapter are to--
``(1) provide a comprehensive framework for ensuring the
effectiveness of information security controls over
information resources that support Federal operations and
assets;
``(2) recognize the highly networked nature of the current
Federal computing environment and provide effective
governmentwide management and oversight of the related
information security risks, including coordination of
information security efforts throughout the civilian,
national security, and law enforcement communities;
``(3) provide for development and maintenance of minimum
controls required to protect Federal information and
information systems;
``(4) provide a mechanism for improved oversight of Federal
agency information security programs;
``(5) acknowledge that commercially developed information
security products offer advanced, dynamic, robust, and
effective information security solutions, reflecting market
solutions for the protection of critical information
infrastructures important to the national defense and
economic security of the nation that are designed, built, and
operated by the private sector; and
``(6) recognize that the selection of specific technical
hardware and software information security solutions should
be left to individual agencies from among commercially
developed products.
``Sec. 3542. Definitions
``(a) In General.--Except as provided under subsection (b),
the definitions under section 3502 shall apply to this
subchapter.
``(b) Additional Definitions.--As used in this subchapter:
``(1) The term `information security' means protecting
information and information systems from unauthorized access,
use, disclosure, disruption, modification, or destruction in
order to provide--
``(A) integrity, which means guarding against improper
information modification or destruction, and includes
ensuring information nonrepudiation and authenticity;
``(B) confidentiality, which means preserving authorized
restrictions on access and disclosure, including means for
protecting personal privacy and proprietary information; and
``(C) availability, which means ensuring timely and
reliable access to and use of information.
``(2)(A) The term `national security system' means any
information system (including any telecommunications system)
used or operated by an agency or by a contractor of an
agency, or other organization on behalf of an agency--
``(i) the function, operation, or use of which--
``(I) involves intelligence activities;
``(II) involves cryptologic activities related to national
security;
``(III) involves command and control of military forces;
``(IV) involves equipment that is an integral part of a
weapon or weapons system; or
``(V) subject to subparagraph (B), is critical to the
direct fulfillment of military or intelligence missions; or
``(ii) is protected at all times by procedures established
for information that have been specifically authorized under
criteria established by an Executive order or an Act of
Congress to be kept classified in the interest of national
defense or foreign policy.
``(B) Subparagraph (A)(i)(V) does not include a system that
is to be used for routine administrative and business
applications (including payroll, finance, logistics, and
personnel management applications).
``(3) The term `information technology' has the meaning
given that term in section 11101 of title 40.
``Sec. 3543. Authority and functions of the Director
``(a) In General.--The Director shall oversee agency
information security policies and practices, including--
``(1) developing and overseeing the implementation of
policies, principles, standards, and guidelines on
information security, including through ensuring timely
agency adoption of and compliance with standards promulgated
under section 11331 of title 40;
``(2) requiring agencies, consistent with the standards
promulgated under such section 11331 and the requirements of
this subchapter, to identify and provide information security
protections commensurate with the risk and magnitude of the
harm resulting from the unauthorized access, use, disclosure,
disruption, modification, or destruction of--
``(A) information collected or maintained by or on behalf
of an agency; or
``(B) information systems used or operated by an agency or
by a contractor of an agency or other organization on behalf
of an agency;
``(3) coordinating the development of standards and
guidelines under section 20 of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-3) with agencies
and offices operating or exercising control of national
security systems (including the National Security Agency) to
assure, to the maximum extent feasible, that such standards
and guidelines are complementary with standards and
guidelines developed for national security systems;
``(4) overseeing agency compliance with the requirements of
this subchapter, including through any authorized action
under section 11303 of title 40, to enforce accountability
for compliance with such requirements;
``(5) reviewing at least annually, and approving or
disapproving, agency information security programs required
under section 3544(b);
``(6) coordinating information security policies and
procedures with related information resources management
policies and procedures;
``(7) overseeing the operation of the Federal information
security incident center required under section 3546; and
``(8) reporting to Congress no later than March 1 of each
year on agency compliance with the requirements of this
subchapter, including--
``(A) a summary of the findings of evaluations required by
section 3545;
``(B) an assessment of the development, promulgation, and
adoption of, and compliance with, standards developed under
section 20 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g-3) and promulgated under
section 11331 of title 40;
``(C) significant deficiencies in agency information
security practices;
``(D) planned remedial action to address such deficiencies;
and
``(E) a summary of, and the views of the Director on, the
report prepared by the National Institute of Standards and
Technology under section 20(d)(10) of the National Institute
of Standards and Technology Act (15 U.S.C. 278g-3).
``(b) National Security Systems.--Except for the
authorities described in paragraphs (4) and (8) of subsection
(a), the authorities of the Director under this section shall
not apply to national security systems.
``(c) Department of Defense and Central Intelligence Agency
Systems.--(1) The authorities of the Director described in
paragraphs (1) and (2) of subsection (a) shall be delegated
to the Secretary of Defense in the case of systems described
in paragraph (2) and to the Director of Central Intelligence
in the case of systems described in paragraph (3).
``(2) The systems described in this paragraph are systems
that are operated by the Department of Defense, a contractor
of the Department of Defense, or another entity on behalf of
the Department of Defense that processes any information the
unauthorized access, use, disclosure, disruption,
modification, or destruction of which would have a
debilitating impact on the mission of the Department of
Defense.
``(3) The systems described in this paragraph are systems
that are operated by the Central Intelligence Agency, a
contractor of the Central Intelligence Agency, or another
entity on behalf of the Central Intelligence Agency that
processes any information the unauthorized access, use,
disclosure, disruption, modification, or destruction of which
would have a debilitating impact on the mission of the
Central Intelligence Agency.
``Sec. 3544. Federal agency responsibilities
``(a) In General.--The head of each agency shall--
``(1) be responsible for--
``(A) providing information security protections
commensurate with the risk and magnitude of the harm
resulting from unauthorized access, use, disclosure,
disruption, modification, or destruction of--
``(i) information collected or maintained by or on behalf
of the agency; and
``(ii) information systems used or operated by an agency or
by a contractor of an agency or other organization on behalf
of an agency;
``(B) complying with the requirements of this subchapter
and related policies, procedures, standards, and guidelines,
including--
``(i) information security standards promulgated under
section 11331 of title 40; and
``(ii) information security standards and guidelines for
national security systems issued in accordance with law and
as directed by the President; and
``(C) ensuring that information security management
processes are integrated with agency strategic and
operational planning processes;
``(2) ensure that senior agency officials provide
information security for the information and information
systems that support the operations and assets under their
control, including through--
``(A) assessing the risk and magnitude of the harm that
could result from the unauthorized access, use, disclosure,
disruption, modification, or destruction of such information
or information systems;
``(B) determining the levels of information security
appropriate to protect such information and information
systems in accordance with standards promulgated under
section 11331 of title 40, for information security
classifications and related requirements;
``(C) implementing policies and procedures to cost-
effectively reduce risks to an acceptable level; and
``(D) periodically testing and evaluating information
security controls and techniques to ensure that they are
effectively implemented;
``(3) delegate to the agency Chief Information Officer
established under section 3506 (or comparable official in an
agency not covered by such section) the authority to ensure
compliance with the requirements imposed on the agency under
this subchapter, including--
``(A) designating a senior agency information security
officer who shall--
``(i) carry out the Chief Information Officer's
responsibilities under this section;
[[Page H8976]]
``(ii) possess professional qualifications, including
training and experience, required to administer the functions
described under this section;
``(iii) have information security duties as that official's
primary duty; and
``(iv) head an office with the mission and resources to
assist in ensuring agency compliance with this section;
``(B) developing and maintaining an agencywide information
security program as required by subsection (b);
``(C) developing and maintaining information security
policies, procedures, and control techniques to address all
applicable requirements, including those issued under section
3543 of this title, and section 11331 of title 40;
``(D) training and overseeing personnel with significant
responsibilities for information security with respect to
such responsibilities; and
``(E) assisting senior agency officials concerning their
responsibilities under paragraph (2);
``(4) ensure that the agency has trained personnel
sufficient to assist the agency in complying with the
requirements of this subchapter and related policies,
procedures, standards, and guidelines; and
``(5) ensure that the agency Chief Information Officer, in
coordination with other senior agency officials, reports
annually to the agency head on the effectiveness of the
agency information security program, including progress of
remedial actions.
``(b) Agency Program.--Each agency shall develop, document,
and implement an agencywide information security program,
approved by the Director under section 3543(a)(5), to provide
information security for the information and information
systems that support the operations and assets of the agency,
including those provided or managed by another agency,
contractor, or other source, that includes--
``(1) periodic assessments of the risk and magnitude of the
harm that could result from the unauthorized access, use,
disclosure, disruption, modification, or destruction of
information and information systems that support the
operations and assets of the agency;
``(2) policies and procedures that--
``(A) are based on the risk assessments required by
paragraph (1);
``(B) cost-effectively reduce information security risks to
an acceptable level;
``(C) ensure that information security is addressed
throughout the life cycle of each agency information system;
and
``(D) ensure compliance with--
``(i) the requirements of this subchapter;
``(ii) policies and procedures as may be prescribed by the
Director, and information security standards promulgated
under section 11331 of title 40;
``(iii) minimally acceptable system configuration
requirements, as determined by the agency; and
``(iv) any other applicable requirements, including
standards and guidelines for national security systems issued
in accordance with law and as directed by the President;
``(3) subordinate plans for providing adequate information
security for networks, facilities, and systems or groups of
information systems, as appropriate;
``(4) security awareness training to inform personnel,
including contractors and other users of information systems
that support the operations and assets of the agency, of--
``(A) information security risks associated with their
activities; and
``(B) their responsibilities in complying with agency
policies and procedures designed to reduce these risks;
``(5) periodic testing and evaluation of the effectiveness
of information security policies, procedures, and practices,
to be performed with a frequency depending on risk, but no
less than annually, of which such testing--
``(A) shall include testing of management, operational, and
technical controls of every information system identified in
the inventory required under section 3505(c); and
``(B) may include testing relied on in a evaluation under
section 3545;
``(6) a process for planning, implementing, evaluating, and
documenting remedial action to address any deficiencies in
the information security policies, procedures, and practices
of the agency;
``(7) procedures for detecting, reporting, and responding
to security incidents, consistent with standards and
guidelines issued pursuant to section 3546(b), including--
``(A) mitigating risks associated with such incidents
before substantial damage is done;
``(B) notifying and consulting with the Federal information
security incident center referred to in section 3546; and
``(C) notifying and consulting with, as appropriate--
``(i) law enforcement agencies and relevant Offices of
Inspector General;
``(ii) an office designated by the President for any
incident involving a national security system; and
``(iii) any other agency or office, in accordance with law
or as directed by the President; and
``(8) plans and procedures to ensure continuity of
operations for information systems that support the
operations and assets of the agency.
``(c) Agency Reporting.--Each agency shall--
``(1) report annually to the Director, the Committees on
Government Reform and Science of the House of
Representatives, the Committees on Governmental Affairs and
Commerce, Science, and Transportation of the Senate, the
appropriate authorization and appropriations committees of
Congress, and the Comptroller General on the adequacy and
effectiveness of information security policies, procedures,
and practices, and compliance with the requirements of this
subchapter, including compliance with each requirement of
subsection (b);
``(2) address the adequacy and effectiveness of information
security policies, procedures, and practices in plans and
reports relating to--
``(A) annual agency budgets;
``(B) information resources management under subchapter 1
of this chapter;
``(C) information technology management under subtitle III
of title 40;
``(D) program performance under sections 1105 and 1115
through 1119 of title 31, and sections 2801 and 2805 of title
39;
``(E) financial management under chapter 9 of title 31, and
the Chief Financial Officers Act of 1990 (31 U.S.C. 501 note;
Public Law 101-576) (and the amendments made by that Act);
``(F) financial management systems under the Federal
Financial Management Improvement Act (31 U.S.C. 3512 note);
and
``(G) internal accounting and administrative controls under
section 3512 of title 31, (known as the `Federal Managers
Financial Integrity Act'); and
``(3) report any significant deficiency in a policy,
procedure, or practice identified under paragraph (1) or
(2)--
``(A) as a material weakness in reporting under section
3512 of title 31; and
``(B) if relating to financial management systems, as an
instance of a lack of substantial compliance under the
Federal Financial Management Improvement Act (31 U.S.C. 3512
note).
``(d) Performance Plan.--(1) In addition to the
requirements of subsection (c), each agency, in consultation
with the Director, shall include as part of the performance
plan required under section 1115 of title 31 a description
of--
``(A) the time periods, and
``(B) the resources, including budget, staffing, and
training,
that are necessary to implement the program required under
subsection (b).
``(2) The description under paragraph (1) shall be based on
the risk assessments required under subsection (b)(2)(1).
``(e) Public Notice and Comment.--Each agency shall provide
the public with timely notice and opportunities for comment
on proposed information security policies and procedures to
the extent that such policies and procedures affect
communication with the public.
``Sec. 3545. Annual independent evaluation
``(a) In General.--(1) Each year each agency shall have
performed an independent evaluation of the information
security program and practices of that agency to determine
the effectiveness of such program and practices.
``(2) Each evaluation under this section shall include--
``(A) testing of the effectiveness of information security
policies, procedures, and practices of a representative
subset of the agency's information systems;
``(B) an assessment (made on the basis of the results of
the testing) of compliance with--
``(i) the requirements of this subchapter; and
``(ii) related information security policies, procedures,
standards, and guidelines; and
``(C) separate presentations, as appropriate, regarding
information security relating to national security systems.
``(b) Independent Auditor.--Subject to subsection (c)--
``(1) for each agency with an Inspector General appointed
under the Inspector General Act of 1978, the annual
evaluation required by this section shall be performed by the
Inspector General or by an independent external auditor, as
determined by the Inspector General of the agency; and
``(2) for each agency to which paragraph (1) does not
apply, the head of the agency shall engage an independent
external auditor to perform the evaluation.
``(c) National Security Systems.--For each agency operating
or exercising control of a national security system, that
portion of the evaluation required by this section directly
relating to a national security system shall be performed--
``(1) only by an entity designated by the agency head; and
``(2) in such a manner as to ensure appropriate protection
for information associated with any information security
vulnerability in such system commensurate with the risk and
in accordance with all applicable laws.
``(d) Existing Evaluations.--The evaluation required by
this section may be based in whole or in part on an audit,
evaluation, or report relating to programs or practices of
the applicable agency.
``(e) Agency Reporting.--(1) Each year, not later than such
date established by the Director, the head of each agency
shall submit to the Director the results of the evaluation
required under this section.
``(2) To the extent an evaluation required under this
section directly relates to a national security system, the
evaluation results submitted to the Director shall contain
only a summary and assessment of that portion of the
evaluation directly relating to a national security system.
[[Page H8977]]
``(f) Protection of Information.--Agencies and evaluators
shall take appropriate steps to ensure the protection of
information which, if disclosed, may adversely affect
information security. Such protections shall be commensurate
with the risk and comply with all applicable laws and
regulations.
``(g) OMB Reports to Congress.--(1) The Director shall
summarize the results of the evaluations conducted under this
section in the report to Congress required under section
3543(a)(8).
``(2) The Director's report to Congress under this
subsection shall summarize information regarding information
security relating to national security systems in such a
manner as to ensure appropriate protection for information
associated with any information security vulnerability in
such system commensurate with the risk and in accordance with
all applicable laws.
``(3) Evaluations and any other descriptions of information
systems under the authority and control of the Director of
Central Intelligence or of National Foreign Intelligence
Programs systems under the authority and control of the
Secretary of Defense shall be made available to Congress only
through the appropriate oversight committees of Congress, in
accordance with applicable laws.
``(h) Comptroller General.--The Comptroller General shall
periodically evaluate and report to Congress on--
``(1) the adequacy and effectiveness of agency information
security policies and practices; and
``(2) implementation of the requirements of this
subchapter.
``Sec. 3546. Federal information security incident center
``(a) In General.--The Director shall ensure the operation
of a central Federal information security incident center
to--
``(1) provide timely technical assistance to operators of
agency information systems regarding security incidents,
including guidance on detecting and handling information
security incidents;
``(2) compile and analyze information about incidents that
threaten information security;
``(3) inform operators of agency information systems about
current and potential information security threats, and
vulnerabilities; and
``(4) consult with the National Institute of Standards and
Technology, agencies or offices operating or exercising
control of national security systems (including the National
Security Agency), and such other agencies or offices in
accordance with law and as directed by the President
regarding information security incidents and related matters.
``(b) National Security Systems.--Each agency operating or
exercising control of a national security system shall share
information about information security incidents, threats,
and vulnerabilities with the Federal information security
incident center to the extent consistent with standards and
guidelines for national security systems, issued in
accordance with law and as directed by the President.
``Sec. 3547. National security systems
``The head of each agency operating or exercising control
of a national security system shall be responsible for
ensuring that the agency--
``(1) provides information security protections
commensurate with the risk and magnitude of the harm
resulting from the unauthorized access, use, disclosure,
disruption, modification, or destruction of the information
contained in such system;
``(2) implements information security policies and
practices as required by standards and guidelines for
national security systems, issued in accordance with law and
as directed by the President; and
``(3) complies with the requirements of this subchapter.
``Sec. 3548. Authorization of appropriations
``There are authorized to be appropriated to carry out the
provisions of this subchapter such sums as may be necessary
for each of fiscal years 2003 through 2007.
``Sec. 3549. Effect on existing law
``Nothing in this subchapter, section 11331 of title 40, or
section 20 of the National Standards and Technology Act (15
U.S.C. 278g-3) may be construed as affecting the authority of
the President, the Office of Management and Budget or the
Director thereof, the National Institute of Standards and
Technology, or the head of any agency, with respect to the
authorized use or disclosure of information, including with
regard to the protection of personal privacy under section
552a of title 5, the disclosure of information under section
552 of title 5, the management and disposition of records
under chapters 29, 31, or 33 of title 44, the management of
information resources under subchapter I of chapter 35 of
this title, or the disclosure of information to the Congress
or the Comptroller General of the United States. While this
subchapter is in effect, subchapter II of this chapter shall
not apply.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter 35 is amended by adding at the end
the following:
``SUBCHAPTER III--INFORMATION SECURITY
``Sec.
``3541. Purposes.
``3542. Definitions.
``3543. Authority and functions of the Director.
``3544. Federal agency responsibilities.
``3545. Annual independent evaluation.
``3546. Federal information security incident center.
``3547. National security systems.
``3548. Authorization of appropriations.
``3549. Effect on existing law.''.
(c) Information Security Responsibilities of Certain
Agencies.--
(1) National security responsibilities.--(A) Nothing in
this Act (including any amendment made by this Act) shall
supersede any authority of the Secretary of Defense, the
Director of Central Intelligence, or other agency head, as
authorized by law and as directed by the President, with
regard to the operation, control, or management of national
security systems, as defined by section 3542(b)(2) of title
44, United States Code.
(B) Section 2224 of title 10, United States Code, is
amended--
(i) in subsection (b), by striking ``(b) Objectives and
Minimum Requirements.--(1)'' and inserting ``(b) Objectives
of the Program.--'';
(ii) in subsection (b), by striking paragraph (2); and
(iii) in subsection (c), in the matter preceding paragraph
(1), by inserting ``, including through compliance with
subchapter III of chapter 35 of title 44'' after
``infrastructure''.
(2) Atomic energy act of 1954.--Nothing in this Act shall
supersede any requirement made by or under the Atomic Energy
Act of 1954 (42 U.S.C. 2011 et seq.). Restricted data or
formerly restricted data shall be handled, protected,
classified, downgraded, and declassified in conformity with
the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
SEC. 302. MANAGEMENT OF INFORMATION TECHNOLOGY.
(a) In General.--Section 11331 of title 40, United States
Code, is amended to read as follows:
``Sec. 11331. Responsibilities for Federal information
systems standards
``(a) Standards and Guidelines.--
``(1) Authority to prescribe.--Except as provided under
paragraph (2), the Secretary of Commerce shall, on the basis
of standards and guidelines developed by the National
Institute of Standards and Technology pursuant to paragraphs
(2) and (3) of section 20(a) of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-3(a)), prescribe
standards and guidelines pertaining to Federal information
systems.
``(2) National security systems.--Standards and guidelines
for national security systems (as defined under this section)
shall be developed, prescribed, enforced, and overseen as
otherwise authorized by law and as directed by the President.
``(b) Mandatory Requirements.--
``(1) Authority to make mandatory.--Except as provided
under paragraph (2), the Secretary shall make standards
prescribed under subsection (a)(1) compulsory and binding to
the extent determined necessary by the Secretary to improve
the efficiency of operation or security of Federal
information systems.
``(2) Required mandatory standards.--(A) Standards
prescribed under subsection (a)(1) shall include information
security standards that--
``(i) provide minimum information security requirements as
determined under section 20(b) of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-3(b)); and
``(ii) are otherwise necessary to improve the security of
Federal information and information systems.
``(B) Information security standards described in
subparagraph (A) shall be compulsory and binding.
``(c) Authority to Disapprove or Modify.--The President may
disapprove or modify the standards and guidelines referred to
in subsection (a)(1) if the President determines such action
to be in the public interest. The President's authority to
disapprove or modify such standards and guidelines may not be
delegated. Notice of such disapproval or modification shall
be published promptly in the Federal Register. Upon receiving
notice of such disapproval or modification, the Secretary of
Commerce shall immediately rescind or modify such standards
or guidelines as directed by the President.
``(d) Exercise of Authority.--To ensure fiscal and policy
consistency, the Secretary shall exercise the authority
conferred by this section subject to direction by the
President and in coordination with the Director of the Office
of Management and Budget.
``(e) Application of More Stringent Standards.--The head of
an executive agency may employ standards for the cost-
effective information security for information systems within
or under the supervision of that agency that are more
stringent than the standards the Secretary prescribes under
this section if the more stringent standards--
``(1) contain at least the applicable standards made
compulsory and binding by the Secretary; and
``(2) are otherwise consistent with policies and guidelines
issued under section 3543 of title 44.
``(f) Decisions on Promulgation of Standards.--The decision
by the Secretary regarding the promulgation of any standard
under this section shall occur not later than 6 months after
the submission of the proposed standard to the Secretary by
the National Institute of Standards and Technology, as
provided under section 20 of the National Institute of
Standards and Technology Act (15 U.S.C. 278g-3).
[[Page H8978]]
``(g) Definitions.--In this section:
``(1) Federal information system.--The term `Federal
information system' means an information system used or
operated by an executive agency, by a contractor of an
executive agency, or by another organization on behalf of an
executive agency.
``(2) Information security.--The term `information
security' has the meaning given that term in section
3542(b)(1) of title 44.
``(3) National security system.--The term `national
security system' has the meaning given that term in section
3542(b)(2) of title 44.''.
(b) Clerical Amendment.--The item relating to section 11331
in the table of sections at the beginning of chapter 113 of
such title is amended to read as follows:
``11331. Responsibilities for Federal information systems standards.''.
SEC. 303. NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY.
Section 20 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g-3), is amended by striking the
text and inserting the following:
``(a) In General.--The Institute shall--
``(1) have the mission of developing standards, guidelines,
and associated methods and techniques for information
systems;
``(2) develop standards and guidelines, including minimum
requirements, for information systems used or operated by an
agency or by a contractor of an agency or other organization
on behalf of an agency, other than national security systems
(as defined in section 3542(b)(2) of title 44, United States
Code); and
``(3) develop standards and guidelines, including minimum
requirements, for providing adequate information security for
all agency operations and assets, but such standards and
guidelines shall not apply to national security systems.
``(b) Minimum Requirements for Standards and Guidelines.--
The standards and guidelines required by subsection (a) shall
include, at a minimum--
``(1)(A) standards to be used by all agencies to categorize
all information and information systems collected or
maintained by or on behalf of each agency based on the
objectives of providing appropriate levels of information
security according to a range of risk levels;
``(B) guidelines recommending the types of information and
information systems to be included in each such category; and
``(C) minimum information security requirements for
information and information systems in each such category;
``(2) a definition of and guidelines concerning detection
and handling of information security incidents; and
``(3) guidelines developed in conjunction with the
Department of Defense, including the National Security
Agency, for identifying an information system as a national
security system consistent with applicable requirements for
national security systems, issued in accordance with law and
as directed by the President.
``(c) Development of Standards and Guidelines.--In
developing standards and guidelines required by subsections
(a) and (b), the Institute shall--
``(1) consult with other agencies and offices and the
private sector (including the Director of the Office of
Management and Budget, the Departments of Defense and Energy,
the National Security Agency, the General Accounting Office,
and the Secretary of Homeland Security) to assure--
``(A) use of appropriate information security policies,
procedures, and techniques, in order to improve information
security and avoid unnecessary and costly duplication of
effort; and
``(B) that such standards and guidelines are complementary
with standards and guidelines employed for the protection of
national security systems and information contained in such
systems;
``(2) provide the public with an opportunity to comment on
proposed standards and guidelines;
``(3) submit to the Secretary of Commerce for promulgation
under section 11331 of title 40, United States Code--
``(A) standards, as required under subsection (b)(1)(A), no
later than 12 months after the date of the enactment of this
section; and
``(B) minimum information security requirements for each
category, as required under subsection (b)(1)(C), no later
than 36 months after the date of the enactment of this
section;
``(4) issue guidelines as required under subsection
(b)(1)(B), no later than 18 months after the date of the
enactment of this section;
``(5) to the maximum extent practicable, ensure that such
standards and guidelines do not require the use or
procurement of specific products, including any specific
hardware or software;
``(6) to the maximum extent practicable, ensure that such
standards and guidelines provide for sufficient flexibility
to permit alternative solutions to provide equivalent levels
of protection for identified information security risks; and
``(7) to the maximum extent practicable, use flexible,
performance-based standards and guidelines that permit the
use of off-the-shelf commercially developed information
security products.
``(d) Information Security Functions.--The Institute
shall--
``(1) submit standards developed pursuant to subsection
(a), along with recommendations as to the extent to which
these should be made compulsory and binding, to the Secretary
of Commerce for promulgation under section 11331 of title 40,
United States Code;
``(2) provide technical assistance to agencies, upon
request, regarding--
``(A) compliance with the standards and guidelines
developed under subsection (a);
``(B) detecting and handling information security
incidents; and
``(C) information security policies, procedures, and
practices;
``(3) conduct research, as needed, to determine the nature
and extent of information security vulnerabilities and
techniques for providing cost-effective information security;
``(4) develop and periodically revise performance
indicators and measures for agency information security
policies and practices;
``(5) evaluate private sector information security policies
and practices and commercially available information
technologies to assess potential application by agencies to
strengthen information security;
``(6) assist the private sector, upon request, in using and
applying the results of activities under this section;
``(7) evaluate security policies and practices developed
for national security systems to assess potential application
by agencies to strengthen information security;
``(8) periodically assess the effectiveness of standards
and guidelines developed under this section and undertake
revisions as appropriate;
``(9) solicit and consider the recommendations of the
Information Security and Privacy Advisory Board, established
by section 21, regarding standards and guidelines developed
under subsection (a) and submit such recommendations to the
Secretary of Commerce with such standards submitted to the
Secretary; and
``(10) prepare an annual public report on activities
undertaken in the previous year, and planned for the coming
year, to carry out responsibilities under this section.
``(e) Definitions.--As used in this section--
``(1) the term `agency' has the same meaning as provided in
section 3502(1) of title 44, United States Code;
``(2) the term `information security' has the same meaning
as provided in section 3542(b)(1) of such title;
``(3) the term `information system' has the same meaning as
provided in section 3502(8) of such title;
``(4) the term `information technology' has the same
meaning as provided in section 11101 of title 40, United
States Code; and
``(5) the term `national security system' has the same
meaning as provided in section 3542(b)(2) of title 44, United
States Code.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary of Commerce
$20,000,000 for each of fiscal years 2003, 2004, 2005, 2006,
and 2007 to enable the National Institute of Standards and
Technology to carry out the provisions of this section.''.
SEC. 304. INFORMATION SECURITY AND PRIVACY ADVISORY BOARD.
Section 21 of the National Institute of Standards and
Technology Act (15 U.S.C. 278g-4), is amended--
(1) in subsection (a), by striking ``Computer System
Security and Privacy Advisory Board'' and inserting
``Information Security and Privacy Advisory Board'';
(2) in subsection (a)(1), by striking ``computer or
telecommunications'' and inserting ``information
technology'';
(3) in subsection (a)(2)--
(A) by striking ``computer or telecommunications
technology'' and inserting ``information technology''; and
(B) by striking ``computer or telecommunications
equipment'' and inserting ``information technology'';
(4) in subsection (a)(3)--
(A) by striking ``computer systems'' and inserting
``information system''; and
(B) by striking ``computer systems security'' and inserting
``information security'';
(5) in subsection (b)(1) by striking ``computer systems
security'' and inserting ``information security'';
(6) in subsection (b) by striking paragraph (2) and
inserting the following:
``(2) to advise the Institute, the Secretary of Commerce,
and the Director of the Office of Management and Budget on
information security and privacy issues pertaining to Federal
Government information systems, including through review of
proposed standards and guidelines developed under section 20;
and'';
(7) in subsection (b)(3) by inserting ``annually'' after
``report'';
(8) by inserting after subsection (e) the following new
subsection:
``(f) The Board shall hold meetings at such locations and
at such time and place as determined by a majority of the
Board.'';
(9) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(10) by striking subsection (h), as redesignated by
paragraph (9), and inserting the following:
``(h) As used in this section, the terms `information
system' and `information technology' have the meanings given
in section 20.''.
SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Computer Security Act.--Section 11332 of title 40,
United States Code, and the item relating to that section in
the table of sections for chapter 113 of such title, are
repealed.
[[Page H8979]]
(b) Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001.--The Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (Public Law 106-398)
is amended by striking section 1062 (44 U.S.C. 3531 note).
(c) Paperwork Reduction Act.--(1) Section 3504(g) of title
44, United States Code, is amended--
(A) by adding ``and'' at the end of paragraph (1);
(B) in paragraph (2)--
(i) by striking ``sections 11331 and 11332(b) and (c) of
title 40'' and inserting ``section 11331 of title 40 and
subchapter II of this chapter''; and
(ii) by striking ``; and'' and inserting a period; and
(C) by striking paragraph (3).
(2) Section 3505 of such title is amended by adding at the
end--
``(c) Inventory of Major Information Systems.--(1) The head
of each agency shall develop and maintain an inventory of
major information systems (including major national security
systems) operated by or under the control of such agency.
``(2) The identification of information systems in an
inventory under this subsection shall include an
identification of the interfaces between each such system and
all other systems or networks, including those not operated
by or under the control of the agency.
``(3) Such inventory shall be--
``(A) updated at least annually;
``(B) made available to the Comptroller General; and
``(C) used to support information resources management,
including--
``(i) preparation and maintenance of the inventory of
information resources under section 3506(b)(4);
``(ii) information technology planning, budgeting,
acquisition, and management under section 3506(h), subtitle
III of title 40, and related laws and guidance;
``(iii) monitoring, testing, and evaluation of information
security controls under subchapter II;
``(iv) preparation of the index of major information
systems required under section 552(g) of title 5, United
States Code; and
``(v) preparation of information system inventories
required for records management under chapters 21, 29, 31,
and 33.
``(4) The Director shall issue guidance for and oversee the
implementation of the requirements of this subsection.''.
(3) Section 3506(g) of such title is amended--
(A) by adding ``and'' at the end of paragraph (1);
(B) in paragraph (2)--
(i) by striking ``section 11332 of title 40'' and inserting
``subchapter II of this chapter''; and
(ii) by striking ``; and'' and inserting a period; and
(C) by striking paragraph (3).
TITLE IV--AUTHORIZATION OF APPROPRIATIONS AND EFFECTIVE DATES
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
Except for those purposes for which an authorization of
appropriations is specifically provided in title I or II,
including the amendments made by such titles, there are
authorized to be appropriated such sums as are necessary to
carry out titles I and II for each of fiscal years 2003
through 2007.
SEC. 402. EFFECTIVE DATES.
(a) Titles I and II.--
(1) In general.--Except as provided under paragraph (2),
titles I and II and the amendments made by such titles shall
take effect 120 days after the date of enactment of this Act.
(2) Immediate enactment.--Sections 207, 214, and 215 shall
take effect on the date of enactment of this Act.
(b) Titles III and IV.--Title III and this title shall take
effect on the date of enactment of this Act.
TITLE V--CONFIDENTIAL INFORMATION PROTECTION AND STATISTICAL EFFICIENCY
SEC. 501. SHORT TITLE.
This title may be cited as the ``Confidential Information
Protection and Statistical Efficiency Act of 2002''.
SEC. 502. DEFINITIONS.
As used in this title:
(1) The term ``agency'' means any entity that falls within
the definition of the term ``executive agency'' as defined in
section 102 of title 31, United States Code, or ``agency'',
as defined in section 3502 of title 44, United States Code.
(2) The term ``agent'' means an individual--
(A)(i) who is an employee of a private organization or a
researcher affiliated with an institution of higher learning
(including a person granted special sworn status by the
Bureau of the Census under section 23(c) of title 13, United
States Code), and with whom a contract or other agreement is
executed, on a temporary basis, by an executive agency to
perform exclusively statistical activities under the control
and supervision of an officer or employee of that agency;
(ii) who is working under the authority of a government
entity with which a contract or other agreement is executed
by an executive agency to perform exclusively statistical
activities under the control of an officer or employee of
that agency;
(iii) who is a self-employed researcher, a consultant, a
contractor, or an employee of a contractor, and with whom a
contract or other agreement is executed by an executive
agency to perform a statistical activity under the control of
an officer or employee of that agency; or
(iv) who is a contractor or an employee of a contractor,
and who is engaged by the agency to design or maintain the
systems for handling or storage of data received under this
title; and
(B) who agrees in writing to comply with all provisions of
law that affect information acquired by that agency.
(3) The term ``business data'' means operating and
financial data and information about businesses, tax-exempt
organizations, and government entities.
(4) The term ``identifiable form'' means any representation
of information that permits the identity of the respondent to
whom the information applies to be reasonably inferred by
either direct or indirect means.
(5) The term ``nonstatistical purpose''--
(A) means the use of data in identifiable form for any
purpose that is not a statistical purpose, including any
administrative, regulatory, law enforcement, adjudicatory, or
other purpose that affects the rights, privileges, or
benefits of a particular identifiable respondent; and
(B) includes the disclosure under section 552 of title 5,
United States Code (popularly known as the Freedom of
Information Act) of data that are acquired for exclusively
statistical purposes under a pledge of confidentiality.
(6) The term ``respondent'' means a person who, or
organization that, is requested or required to supply
information to an agency, is the subject of information
requested or required to be supplied to an agency, or
provides that information to an agency.
(7) The term ``statistical activities''--
(A) means the collection, compilation, processing, or
analysis of data for the purpose of describing or making
estimates concerning the whole, or relevant groups or
components within, the economy, society, or the natural
environment; and
(B) includes the development of methods or resources that
support those activities, such as measurement methods,
models, statistical classifications, or sampling frames.
(8) The term ``statistical agency or unit'' means an agency
or organizational unit of the executive branch whose
activities are predominantly the collection, compilation,
processing, or analysis of information for statistical
purposes.
(9) The term ``statistical purpose''--
(A) means the description, estimation, or analysis of the
characteristics of groups, without identifying the
individuals or organizations that comprise such groups; and
(B) includes the development, implementation, or
maintenance of methods, technical or administrative
procedures, or information resources that support the
purposes described in subparagraph (A).
SEC. 503. COORDINATION AND OVERSIGHT OF POLICIES.
(a) In General.--The Director of the Office of Management
and Budget shall coordinate and oversee the confidentiality
and disclosure policies established by this title. The
Director may promulgate rules or provide other guidance to
ensure consistent interpretation of this title by the
affected agencies.
(b) Agency Rules.--Subject to subsection (c), agencies may
promulgate rules to implement this title. Rules governing
disclosures of information that are authorized by this title
shall be promulgated by the agency that originally collected
the information.
(c) Review and Approval of Rules.--The Director shall
review any rules proposed by an agency pursuant to this title
for consistency with the provisions of this title and chapter
35 of title 44, United States Code, and such rules shall be
subject to the approval of the Director.
(d) Reports.--
(1) The head of each agency shall provide to the Director
of the Office of Management and Budget such reports and other
information as the Director requests.
(2) Each Designated Statistical Agency referred to in
section 522 shall report annually to the Director of the
Office of Management and Budget, the Committee on Government
Reform of the House of Representatives, and the Committee on
Governmental Affairs of the Senate on the actions it has
taken to implement sections 523 and 524. The report shall
include copies of each written agreement entered into
pursuant to section 524(a) for the applicable year.
(3) The Director of the Office of Management and Budget
shall include a summary of reports submitted to the Director
under paragraph (2) and actions taken by the Director to
advance the purposes of this title in the annual report to
the Congress on statistical programs prepared under section
3504(e)(2) of title 44, United States Code.
SEC. 504. EFFECT ON OTHER LAWS.
(a) Title 44, United States Code.--This title, including
amendments made by this title, does not diminish the
authority under section 3510 of title 44, United States Code,
of the Director of the Office of Management and Budget to
direct, and of an agency to make, disclosures that are not
inconsistent with any applicable law.
(b) Title 13 and Title 44, United States Code.--This title,
including amendments made by this title, does not diminish
the authority of the Bureau of the Census to provide
information in accordance with sections 8, 16, 301, and 401
of title 13, United States Code, and section 2108 of title
44, United States Code.
[[Page H8980]]
(c) Title 13, United States Code.--This title, including
amendments made by this title, shall not be construed as
authorizing the disclosure for nonstatistical purposes of
demographic data or information collected by the Census
Bureau pursuant to section 9 of title 13, United States Code.
(d) Various Energy Statutes.--Data or information acquired
by the Energy Information Administration under a pledge of
confidentiality and designated by the Energy Information
Administration to be used for exclusively statistical
purposes shall not be disclosed in identifiable form for
nonstatistical purposes under--
(1) section 12, 20, or 59 of the Federal Energy
Administration Act of 1974 (15 U.S.C. 771, 779, 790h);
(2) section 11 of the Energy Supply and Environmental
Coordination Act of 1974 (15 U.S.C. 796); or
(3) section 205 or 407 of the Department of the Energy
Organization Act of 1977 (42 U.S.C. 7135, 7177).
(e) Section 201 of Congressional Budget Act of 1974.--This
title, including amendments made by this title, shall not be
construed to limit any authorities of the Congressional
Budget Office to work (consistent with laws governing the
confidentiality of information the disclosure of which would
be a violation of law) with databases of Designated
Statistical Agencies (as defined in section 522), either
separately or, for data that may be shared pursuant to
section 524 of this title or other authority, jointly in
order to improve the general utility of these databases for
the statistical purpose of analyzing pension and health care
financing issues.
(f) Preemption of State Law.--Nothing in this title shall
preempt applicable State law regarding the confidentiality of
data collected by the States.
(g) Statutes Regarding False Statements.--Notwithstanding
section 512, information collected by an agency for
exclusively statistical purposes under a pledge of
confidentiality may be provided by the collecting agency to a
law enforcement agency for the prosecution of submissions to
the collecting agency of false statistical information under
statutes that authorize criminal penalties (such as section
221 of title 13, United States Code) or civil penalties for
the provision of false statistical information, unless such
disclosure or use would otherwise be prohibited under Federal
law.
(h) Construction.--Nothing in this title shall be construed
as restricting or diminishing any confidentiality protections
or penalties for unauthorized disclosure that otherwise apply
to data or information collected for statistical purposes or
nonstatistical purposes, including, but not limited to,
section 6103 of the Internal Revenue Code of 1986 (26 U.S.C.
6103).
(i) Authority of Congress.--Nothing in this title shall be
construed to affect the authority of the Congress, including
its committees, members, or agents, to obtain data or
information for a statistical purpose, including for
oversight of an agency's statistical activities.
Subtitle A--Confidential Information Protection
SEC. 511. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds the following:
(1) Individuals, businesses, and other organizations have
varying degrees of legal protection when providing
information to the agencies for strictly statistical
purposes.
(2) Pledges of confidentiality by agencies provide
assurances to the public that information about individuals
or organizations or provided by individuals or organizations
for exclusively statistical purposes will be held in
confidence and will not be used against such individuals or
organizations in any agency action.
(3) Protecting the confidentiality interests of individuals
or organizations who provide information under a pledge of
confidentiality for Federal statistical programs serves both
the interests of the public and the needs of society.
(4) Declining trust of the public in the protection of
information provided under a pledge of confidentiality to the
agencies adversely affects both the accuracy and completeness
of statistical analyses.
(5) Ensuring that information provided under a pledge of
confidentiality for statistical purposes receives protection
is essential in continuing public cooperation in statistical
programs.
(b) Purposes.--The purposes of this subtitle are the
following:
(1) To ensure that information supplied by individuals or
organizations to an agency for statistical purposes under a
pledge of confidentiality is used exclusively for statistical
purposes.
(2) To ensure that individuals or organizations who supply
information under a pledge of confidentiality to agencies for
statistical purposes will neither have that information
disclosed in identifiable form to anyone not authorized by
this title nor have that information used for any purpose
other than a statistical purpose.
(3) To safeguard the confidentiality of individually
identifiable information acquired under a pledge of
confidentiality for statistical purposes by controlling
access to, and uses made of, such information.
SEC. 512. LIMITATIONS ON USE AND DISCLOSURE OF DATA AND
INFORMATION.
(a) Use of Statistical Data or Information.--Data or
information acquired by an agency under a pledge of
confidentiality and for exclusively statistical purposes
shall be used by officers, employees, or agents of the agency
exclusively for statistical purposes.
(b) Disclosure of Statistical Data or Information.--
(1) Data or information acquired by an agency under a
pledge of confidentiality for exclusively statistical
purposes shall not be disclosed by an agency in identifiable
form, for any use other than an exclusively statistical
purpose, except with the informed consent of the respondent.
(2) A disclosure pursuant to paragraph (1) is authorized
only when the head of the agency approves such disclosure and
the disclosure is not prohibited by any other law.
(3) This section does not restrict or diminish any
confidentiality protections in law that otherwise apply to
data or information acquired by an agency under a pledge of
confidentiality for exclusively statistical purposes.
(c) Rule for Use of Data or Information for Nonstatistical
Purposes.--A statistical agency or unit shall clearly
distinguish any data or information it collects for
nonstatistical purposes (as authorized by law) and provide
notice to the public, before the data or information is
collected, that the data or information could be used for
nonstatistical purposes.
(d) Designation of Agents.--A statistical agency or unit
may designate agents, by contract or by entering into a
special agreement containing the provisions required under
section 502(2) for treatment as an agent under that section,
who may perform exclusively statistical activities, subject
to the limitations and penalties described in this title.
SEC. 513. FINES AND PENALTIES.
Whoever, being an officer, employee, or agent of an agency
acquiring information for exclusively statistical purposes,
having taken and subscribed the oath of office, or having
sworn to observe the limitations imposed by section 512,
comes into possession of such information by reason of his or
her being an officer, employee, or agent and, knowing that
the disclosure of the specific information is prohibited
under the provisions of this title, willfully discloses the
information in any manner to a person or agency not entitled
to receive it, shall be guilty of a class E felony and
imprisoned for not more than 5 years, or fined not more than
$250,000, or both.
Subtitle B--Statistical Efficiency
SEC. 521. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds the following:
(1) Federal statistics are an important source of
information for public and private decision-makers such as
policymakers, consumers, businesses, investors, and workers.
(2) Federal statistical agencies should continuously seek
to improve their efficiency. Statutory constraints limit the
ability of these agencies to share data and thus to achieve
higher efficiency for Federal statistical programs.
(3) The quality of Federal statistics depends on the
willingness of businesses to respond to statistical surveys.
Reducing reporting burdens will increase response rates, and
therefore lead to more accurate characterizations of the
economy.
(4) Enhanced sharing of business data among the Bureau of
the Census, the Bureau of Economic Analysis, and the Bureau
of Labor Statistics for exclusively statistical purposes will
improve their ability to track more accurately the large and
rapidly changing nature of United States business. In
particular, the statistical agencies will be able to better
ensure that businesses are consistently classified in
appropriate industries, resolve data anomalies, produce
statistical samples that are consistently adjusted for the
entry and exit of new businesses in a timely manner, and
correct faulty reporting errors quickly and efficiently.
(5) The Congress enacted the International Investment and
Trade in Services Act of 1990 that allowed the Bureau of the
Census, the Bureau of Economic Analysis, and the Bureau of
Labor Statistics to share data on foreign-owned companies.
The Act not only expanded detailed industry coverage from 135
industries to over 800 industries with no increase in the
data collected from respondents but also demonstrated how
data sharing can result in the creation of valuable data
products.
(6) With subtitle A of this title, the sharing of business
data among the Bureau of the Census, the Bureau of Economic
Analysis, and the Bureau of Labor Statistics continues to
ensure the highest level of confidentiality for respondents
to statistical surveys.
(b) Purposes.--The purposes of this subtitle are the
following:
(1) To authorize the sharing of business data among the
Bureau of the Census, the Bureau of Economic Analysis, and
the Bureau of Labor Statistics for exclusively statistical
purposes.
(2) To reduce the paperwork burdens imposed on businesses
that provide requested information to the Federal Government.
(3) To improve the comparability and accuracy of Federal
economic statistics by allowing the Bureau of the Census, the
Bureau of Economic Analysis, and the Bureau of Labor
Statistics to update sample frames, develop consistent
classifications of establishments and companies into
industries, improve coverage, and reconcile significant
differences in data produced by the three agencies.
(4) To increase understanding of the United States economy,
especially for key industry
[[Page H8981]]
and regional statistics, to develop more accurate measures of
the impact of technology on productivity growth, and to
enhance the reliability of the Nation's most important
economic indicators, such as the National Income and Product
Accounts.
SEC. 522. DESIGNATION OF STATISTICAL AGENCIES.
For purposes of this subtitle, the term ``Designated
Statistical Agency'' means each of the following:
(1) The Bureau of the Census of the Department of Commerce.
(2) The Bureau of Economic Analysis of the Department of
Commerce.
(3) The Bureau of Labor Statistics of the Department of
Labor.
SEC. 523. RESPONSIBILITIES OF DESIGNATED STATISTICAL
AGENCIES.
The head of each of the Designated Statistical Agencies
shall--
(1) identify opportunities to eliminate duplication and
otherwise reduce reporting burden and cost imposed on the
public in providing information for statistical purposes;
(2) enter into joint statistical projects to improve the
quality and reduce the cost of statistical programs; and
(3) protect the confidentiality of individually
identifiable information acquired for statistical purposes by
adhering to safeguard principles, including--
(A) emphasizing to their officers, employees, and agents
the importance of protecting the confidentiality of
information in cases where the identity of individual
respondents can reasonably be inferred by either direct or
indirect means;
(B) training their officers, employees, and agents in their
legal obligations to protect the confidentiality of
individually identifiable information and in the procedures
that must be followed to provide access to such information;
(C) implementing appropriate measures to assure the
physical and electronic security of confidential data;
(D) establishing a system of records that identifies
individuals accessing confidential data and the project for
which the data were required; and
(E) being prepared to document their compliance with
safeguard principles to other agencies authorized by law to
monitor such compliance.
SEC. 524. SHARING OF BUSINESS DATA AMONG DESIGNATED
STATISTICAL AGENCIES.
(a) In General.--A Designated Statistical Agency may
provide business data in an identifiable form to another
Designated Statistical Agency under the terms of a written
agreement among the agencies sharing the business data that
specifies--
(1) the business data to be shared;
(2) the statistical purposes for which the business data
are to be used;
(3) the officers, employees, and agents authorized to
examine the business data to be shared; and
(4) appropriate security procedures to safeguard the
confidentiality of the business data.
(b) Responsibilities of Agencies Under Other Laws.--The
provision of business data by an agency to a Designated
Statistical Agency under this subtitle shall in no way alter
the responsibility of the agency providing the data under
other statutes (including section 552 of title 5, United
States Code (popularly known as the Freedom of Information
Act), and section 552b of title 5, United States Code
(popularly known as the Privacy Act of 1974)) with respect to
the provision or withholding of such information by the
agency providing the data.
(c) Responsibilities of Officers, Employees, and Agents.--
Examination of business data in identifiable form shall be
limited to the officers, employees, and agents authorized to
examine the individual reports in accordance with written
agreements pursuant to this section. Officers, employees, and
agents of a Designated Statistical Agency who receive data
pursuant to this subtitle shall be subject to all provisions
of law, including penalties, that relate--
(1) to the unlawful provision of the business data that
would apply to the officers, employees, and agents of the
agency that originally obtained the information; and
(2) to the unlawful disclosure of the business data that
would apply to officers, employees, and agents of the agency
that originally obtained the information.
(d) Notice.--Whenever a written agreement concerns data
that respondents were required by law to report and the
respondents were not informed that the data could be shared
among the Designated Statistical Agencies, for exclusively
statistical purposes, the terms of such agreement shall be
described in a public notice issued by the agency that
intends to provide the data. Such notice shall allow a
minimum of 60 days for public comment.
SEC. 525. LIMITATIONS ON USE OF BUSINESS DATA PROVIDED BY
DESIGNATED STATISTICAL AGENCIES.
(a) Use, Generally.--Business data provided by a Designated
Statistical Agency pursuant to this subtitle shall be used
exclusively for statistical purposes.
(b) Publication.--Publication of business data acquired by
a Designated Statistical Agency shall occur in a manner
whereby the data furnished by any particular respondent are
not in identifiable form.
SEC. 526. CONFORMING AMENDMENTS.
(a) Department of Commerce.--Section 1 of the Act of
January 27, 1938 (15 U.S.C. 176a) is amended by striking
``The'' and inserting ``Except as provided in the
Confidential Information Protection and Statistical
Efficiency Act of 2002, the''.
(b) Title 13.--Chapter 10 of title 13, United States Code,
is amended--
(1) by adding after section 401 the following:
``Sec. 402. Providing business data to Designated Statistical
Agencies
``The Bureau of the Census may provide business data to the
Bureau of Economic Analysis and the Bureau of Labor
Statistics (`Designated Statistical Agencies') if such
information is required for an authorized statistical purpose
and the provision is the subject of a written agreement with
that Designated Statistical Agency, or their successors, as
defined in the Confidential Information Protection and
Statistical Efficiency Act of 2002.''; and
(2) in the table of sections for the chapter by adding
after the item relating to section 401 the following:
``402. Providing business data to Designated Statistical Agencies.''.
Mr. SAWYER. Mr. Speaker, I rise in support of this bill. I am pleased
that H.R. 2458 includes title 5 of the bill to improve the government's
statistical capabilities. As the lead Democratic sponsor of this
section, I would like to thank the gentleman from California (Mr. Horn)
for the opportunity to work with him on this legislation and for his
leadership on this issue. This measure has been years in the making. It
builds on the gentleman from California's approach to provide limited
data sharing among agencies as well as my bill to strengthen the
confidentiality of government statistics. My remarks focus on the new
confidentiality provisions contained in the bill.
The confidentiality measures create a uniform set of protections for
statistical information that would replace the current patchwork of
rules and extent these protections to all individually identifiable
data collected for statistical purposes. This will encourage greater
public cooperation with government surveys and improve the quality of
federal statistics.
In too many instances, existing law does not ensure that personal
information collected with remain confidential. More than 70 federal
agencies or statistical units collect such data but only 12 are covered
by government regulations to protect personal identifiable information
from disclosure, and only a handful of those have the stronger
protection of law. Some of these uncovered units collected information
on highly sensitive topics such as substance abuse and mental health.
Such sensitive data deserves the most stringent of protections from
disclosure. While agency policy may have once been enough in the past,
real public trust requires that information be shielded by the force of
law.
Statutory protection under this legislation would prevent any
regulatory or law enforcement misuse of these data. This recommendation
was first made under the Privacy Act of 1974. However, that Act has
several loopholes that allow for disclosure of personally identifiable
information without the informed consent of those who supplied the
information. These are twelve categories of such exemptions and the Act
fails to distinguish between data collected for research purposes and
data collected for administrative purposes, offering minimal protection
from improper disclosure.
The commission recommended that no record or information collected
for statistical purpose be used in identifiable form to make any
decision or take any action directly affecting the person to whom the
record pertains. H.R. 5215 embodies the commission's recommendation.
Improvements that this bill would make in our nation's statistical
programs are long overdue. The measures are needed not only to protect
the public but also to ensure the public's continued cooperation and
participation in essential government research. Informed public policy
relies on it. I am pleased that this measure has the support of the
House and urge the Senate to pass this legislation before adjourning
for the year.
Mr. TOM DAVIS of Virginia. Mr. Speaker, as the federal government has
increased its use of the Internet and other information technologies to
conduct its business, the need for a comprehensive approach to the
management Electronic Government initiatives has become evident.
Therefore, Congressman Jim turner, the Ranking Member of the Government
Reform Subcommittee on Technology and Procurement Policy, introduced
H.R. 2458, the Electronic Government Act of 2002. H.R. 2458 is a
bipartisan bill to enhance the management and promotion of electronic
government services and processes and to increase the electronic
availability of information to the public. I worked closely with
Congressman Turner to develop this bill. H.R. 2458 was reported
favorably by the Committee on Government Reform with a unanimous vote.
With agreed upon changes reflected in the text before the House today,
the bill is supported by the Science and Armed Services Committees, as
well as by the leadership of the Senate Governmental Affairs Committee.
[[Page H8982]]
Following action by the House, the legislation is expected to be taken
up by the Senate and acted on in its present form.
The bill contains five titles, covering a broad array of government
information management issues.
Title I would strengthen government-wide approaches to improving the
use of information technology for service delivery and governmental
efficiency and effectiveness by establishing an Office of Electronic
Government in the Office of Management and Budget (OMB), a statutory
interagency Chief Information Officers (CIO) Council, a program to
promote contractor innovation and excellence in E-Gov services and
processes, and an interagency E-Gov Fund to provide funding for
innovative E-Gov initiatives.
Title II would mandate a number of specific initiatives to enhance
Federal E-Gov capabilities. Among its provisions are requirements to
support broader use of electronic signatures, a develop a Federal
Internet portal, improve public access to public information in Federal
agencies and the courts, strengthen privacy protections, improve
Federal workforce information technology skills, and make greater use
of share-in-savings contracts.
Title III, ``Federal Information Security Management Act of 2002''
(FISMA), would permanently authorize a government-wide risk-based
approach to information security and otherwise strengthen Government
Information Security Reform (GISRA) provisions of the FY 2001 Defense
Authorization Act.
Title IV would provide authorization of appropriations for the
legislation and effective dates for its provisions.
Title V would reduce paperwork burdens and improve privacy
protections by establishing new procedures for statistical data sharing
among key statistical agencies.
Following favorable action on the bill by the Committee on Government
Reform, the managers renewed discussions with the Administration,
including OMB, the Department of Defense, and the Department of
Commerce, and the Committees on Science and Armed Services, and the
Senate Committee on Government Affairs. The resulting agreement
involved making a number of revisions to the reported bill. The changes
are described below.
Section 205 of H.R. 2458 is revised at the request of the
Administration to ensure that on-line access to Federal court records
not compromise legitimate privacy and security concerns. The revised
language would require the judiciary to develop rules to clearly set
forth litigant rights and obligations, as well as court
responsibilities with regards to the treatment of privacy and security
issues associated with court records.
Section 209 is revised with the addition of subsection (b) to require
the Director of OPM, in consultation with the Director of OMB, the CIO
Council, and the Administration of GSA, to analyze, identify, assess,
and oversee the government-wide development of information technology
and information resource management training curricula and methods.
Agency heads will use these curricula and methods to establish training
programs that meet their needs for information technology and
information resource management while designing the training to
maximize efficiency and economy.
Section 210 authorizing the government-wide use of share-in savings
contracts for information technology has been amended to sunset in
September 2005, rather than in 2009. The provision has also been
amended to prohibit the agency letting the contract to retain any
savings attributable to a decrease in the number of employees
performing the function and to prohibit the inclusion in savings of
enhanced revenues from the collection of fees, taxes, debts, claims, or
other amounts collected by the government. The requirement that the
General Accounting Office (GAO) review the Office of Management and
Budget report to Congress on the use by the agencies of the share-in-
savings authority has been expanded to include an independent
assessment by the GAO of the effectiveness of share-in-savings
contracts and of whether the authority should be continued. Finally the
section now provides for the repeal of the current share-in-savings
pilot authority in 40 U.S.C. 11521.
Section 213(b) requires a study to evaluate the best practices of
community technology centers that receive federal funds. 213(b)(1) is
amended to clarify that OMB must ensure that such a study is conducted.
Likewise, Section 214(b)(1) is amended to clarify that OMB must
ensure a study is conducted on the use of information technology to
enhance crisis management.
A new section 216 is added to Title II that calls for the development
of protocols for geographic information systems so that industry and
government can develop innovative multi-layered maps and analyses using
the government's massive amount of geographic data. This section is not
intended to inappropriately move activity into the government that is
best left to the private sector. Furthermore, nothing in this provision
is intended to encourage the development of technical standards that
would require the procurement of specific hardware or software.
A new subsection (c) is added to Sec. 3533 in section 301 of the
bill. This subsection delegates to the Secretary of the Defense and the
Director of Central Intelligence OMB authority under Sec. 3533(a)(1)
for developing and overseeing the implementation of information
security policies, and under Sec. 3533(a)(2) for providing risk-based
information security protections, for DOD and CIA systems that process
information whose unauthorized access, use, disclosure, disruption,
modification, or destruction would have a debilitating impact on the
missions of the agencies. This revision was requested by the
Administration and the Armed Services Committee.
Sec. 3536(a)(4) in section 301 of the bill is modified to require
that the Federal information security incident center described under
this section is to keep the National Institute of Standards and
Technology (NIST), as well as other appropriate agencies, informed
about information security incidents and related matters.
Section 303 of the legislation as reported by the Committee on
Government Reform would amend 40 U.S.C. 11331 to transfer to OMB the
authority to promulgate information security standards, which is
currently a responsibility of the Secretary of Commerce. After much
discussion about the practical consequences of such a transfer, it was
agreed to retain the current law's structure while strengthening it in
a number of instances. First, FISMA's revision of 40 U.S.C. 11331, at
sec. 303, is modified to maintain standards promulgation by the
Secretary of Commerce, largely as currently provided in law. Sec. 11331
is revised, however, to continue FISMA provisions for minimum mandatory
security standards, a time limit on promulgation of the standards, and
the elimination of waiver authority. Second, FISMA's Sec. 3533(a), in
sec. 301, is revised accordingly to strike references to OMB
promulgation of the NIST-developed standards. In place of that mandate,
OMB would be required, at Sec. 3533(a)(1), to use its oversight
authority to ensure agency use of such standards, and at
Sec. 3533(a)(8), to include an assessment of the standards in its
annual report to Congress. Third, to harmonize other references in the
legislation to standards promulgation, a number of provisions in Titles
I and II are also revised purely for the sake of consistency: i.e., in
Sec. 3602(f)(8) in sec. 101, in sec. 202(a)(2), in sec. 202(f)(2), in
sec. 207(d)(2)(iii), in Sec. 3534(a)(1)(B)(i) in sec. 301, in
Sec. 20(c)(3), (e)(1), and (e)(8) in sec. 303, and in sec. 304(6).
Finally, sec. 306 is stricken because given the transfer back to
Commerce of all standards promulgation, there is no need to address the
division in authority between OMB (security standards) and Commerce
(system standards).
Section 303's amendments to section 20 of the NIST Act, 15 U.S.C.
278g-3, are modified in several respects. First, NIST guidance
concerning the identification of national security systems, at
subsection (b)(3), is to be developed in conjunction with the
Department of Defense, including the National Security Agency. Second,
as requested by the Administration and the Science Committee,
subsections (c)(5), (6), and (7) are modified to be ``to the maximum
extent practicable.'' These changes are intended to preserve the policy
of reliance on flexible, performance-based, technology-neutral
requirements, while recognizing that there likely will be times where
needs such as interoperability or the reality of market predominance
will require guidance that addresses specific technologies or products.
Third, as requested by the Science Committee, the bill drops subsection
(d), which would have established a NIST Office for Information
Security Programs. Finally, also at the request of the Science
Committee, subsection (e) is revised consistent with current law to
provide for NIST technical assistance to agencies, at (e)(2), and to
authorize NIST to help the private sector, upon request, with NIST
guidance and other assistance, at (e)(6).
Title V of this bill is based on H.R. 5215, the Confidential
Information Protection and Statistical Efficiency Act of 2002,
introduced by Congressman Stephen Horn, Chairman of the Government
Reform Subcommittee on Government Efficiency, Financial Management and
Intergovernmental Relations. Chairman Horn and Ranking Member Janice D.
Schakowsky have worked tirelessly with the Administration to finalize
these provisions. This section creates the opportunity for three
federal statistical agencies to reduce reporting burdens on businesses
while simultaneously making the process of developing economic
statistics more efficient. This title provides the statutory changes
necessary to allow the Bureau of Economic Analysis, the Bureau of Labor
Statistics, and the U.S. Census Bureau to enter into negotiated
agreements to share confidential business information. The magnitude of
the gains in efficiency and burden reduction will turn on the
willingness of these agencies to move swiftly to capitalize on the
opportunities presented by these changes.
[[Page H8983]]
Title V also include language introduced in this Congress by
Representatives Sawyer and Waxman, which provides strong protection
from disclosure for information provided to the government by
individuals and businesses. A new provision added to Title V provides a
resolution to a longstanding problem of information exchange between
the Congressional Budget Office and statistical agencies by making it
clear that Congressional intent is for CBO, in fulfilling its
statistical service to the Congress, to have access to the necessary
information held by statistical agencies in the executive branch.
Finally, a number of technical corrections are made: At
Sec. 3532(b)(2)(A) in sec. 101 to correct a paragraph indentation; and
at Sec. 3533(a)(8)(D) in sec. 101 to correct a subsection cross-
reference.
With these changes, the managers of H.R. 2458 are able to state that
the legislation before the House of Representatives today reflects
agreement across the aisle, among key members and committees in both
houses of Congress, and with the executive branch. I urge passage of
this bill.
Mr. TURNER. Mr. Speaker, I want to thank Chairman Davis for the
bipartisan manner in which we have worked to address the issues in H.R.
2458, the E-Government Act of 2002, as amendment. In addition to
incorporating many of the changes agreed to by the Senate and
Administration, we have been able to address concerns that I and others
had with this legislation since the bill has been marked up by the
Government Reform Committee. I thank Chairman Davis and Burton, as well
as Representative Henry Waxman, ranking member of the Government Reform
Committee, for working constructively with me on those issues. I
believe all of us hope that this bill will become law before the end of
the 107th Congress.
The information technology revolution of the last decade has had a
profound impact on almost all aspects of our economy and government.
Providing a statutory basis for applying some of the impacts of that
revolution to the federal government is a complicated, but necessary,
step. The Subcommittee on Technology and Procurement Policy has held
numerous hearings on the issues H.R. 2458 addresses, and I want to
commend Chairman Davis for his attention to this topic.
When it comes to information technology, effective use of the
internet, and other cutting edge information resources, the federal
government is playing catch-up with the private sector, which seems to
have been able to integrate the new technology into its day-to-day
operations more rapidly and effectively than the federal government.
And while we have played catch-up, we're losing money through
inefficiency, and we're wasting the time of millions of citizens, who
deserve the modern effective government information technology can help
us achieve. This bill will go some way toward improving the federal
government's use of information technology.
That is why I, along with Senator Lieberman, introduced the E-
Government Act, to help us move toward that goal by improving
leadership and funding, as well as addressing other critical issues
like privacy, training, and accessibility. I believe the measure holds
great promise for improving government and its relationship to American
citizens.
The measure before us also incorporates other legislation which has
bipartisan support, including bill Chairman Davis authored, H.R. 3844,
the Federal Information Security Management Act, and H.R. 5215, the
Confidential Information Protection and Statistical Efficiency Act,
introduced by Chairman Horn. These are all important measures and I
urge my colleagues to support them.
Discharged From Committee on Government Reform, Amended, and Agreed to
H. Con. Res. 466, recognizing the significance of bread in American
history, culture, and daily diet.
H. Con. Res. 466
Whereas bread is a gift of friendship in the United States;
Whereas bread is used as a symbol of unity for families and
friends;
Whereas the expression ``breaking bread together'' means
sharing friendship, peace, and goodwill, and the actual
breaking of bread together can help restore a sense of
normalcy and encourage a sense of community;
Whereas bread, the staff of life, not only nourishes the
body but symbolizes nourishment for the human spirit;
Whereas bread is used in many cultures to commemorate
milestones such as births, weddings, and deaths;
Whereas bread is the most consumed of grain foods, is
recognized by the United States Department of Agriculture as
part of the most important food group, and plays a vital role
in American diets;
Whereas Americans consume an average of 60 pounds of bread
annually;
Whereas bread has been a staple of American diets for
hundreds of years;
Whereas Americans are demonstrating a new interest in
artisan and home-style types of breads, increasingly found in
cafes, bakeries, restaurants, and homes across the country;
Whereas bread sustained the Pilgrims during their long
ocean voyage to America and was used to celebrate their first
harvest in the American wilderness; and
Whereas bread remains an important part of the family meal
when Americans celebrate Thanksgiving, and the designation of
November 2002 as National Bread Month would recognize the
significance of bread in American history, culture, and daily
diet: Now, therefore, be it
Resolved by the House of Representatives (the Senate
concurring), That the Congress supports the goals of National
Bread Month and encourages the President to issue a
proclamation calling on the people of the United States to
observe such month with appropriate ceremonies and
activities.
Taken From the Speaker's Table and Concurred in Senate Amendment
H.R. 2621, to amend title 18, United States Code, with respect to
consumer product protection.
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Product Packaging Protection
Act of 2002''.
SEC. 2. TAMPERING WITH CONSUMER PRODUCTS.
Section 1365 of title 18, United States Code, is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following:
``(f)(1) Whoever, without the consent of the manufacturer,
retailer, or distributor, intentionally tampers with a
consumer product that is sold in interstate or foreign
commerce by knowingly placing or inserting any writing in the
consumer product, or in the container for the consumer
product, before the sale of the consumer product to any
consumer shall be fined under this title, imprisoned not more
than 1 year, or both.
``(2) Notwithstanding the provisions of paragraph (1), if
any person commits a violation of this subsection after a
prior conviction under this section becomes final, such
person shall be fined under this title, imprisoned for not
more than 3 years, or both.
``(3) In this subsection, the term `writing' means any form
of representation or communication, including hand-bills,
notices, or advertising, that contain letters, words, or
pictorial representations.''.
Taken From the Speaker's Table and Concurred in Senate Amendment
H.R. 3609, to amend title 49, United States Code, to enhance the
security and safety of pipelines.
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES
CODE.
(a) Short Title.--This Act may be cited as the ``Pipeline
Safety Improvement Act of 2002''.
(b) Amendment of Title 49, United States Code.--Except as
otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to,
or a repeal of, a section or other provision, the reference
shall be considered to be made to a section or other
provision of title 49, United States Code.
SEC. 2. ONE-CALL NOTIFICATION PROGRAMS.
(a) Minimum Standards.--Section 6103 is amended--
(1) in subsection (a)--
(A) in paragraph (1) by inserting ``, including all
government operators'' before the semicolon at the end; and
(B) in paragraph (2) by inserting ``, including all
government and contract excavators'' before the semicolon at
the end; and
(2) in subsection (c) by striking ``provide for'' and
inserting ``provide for and document''.
(b) Compliance With Minimum Standards.--Section 6104(d) is
amended by striking ``Within 3 years after the date of the
enactment of this chapter, the Secretary shall begin to'' and
inserting ``The Secretary shall''.
(c) Implementation of Best Practices Guidelines.--
(1) In general.--Section 6105 is amended to read as
follows:
``Sec. 6105. Implementation of best practices guidelines
``(a) Adoption of Best Practices.--The Secretary of
Transportation shall encourage States, operators of one-call
notification programs, excavators (including all government
and contract excavators), and underground facility operators
to adopt and implement practices identified in the best
practices report entitled `Common Ground', as periodically
updated.
``(b) Technical Assistance.--The Secretary shall provide
technical assistance to and participate in programs sponsored
by a non-profit organization specifically established for the
purpose of reducing construction-related damage to
underground facilities.
``(c) Grants.--
``(1) In general.--The Secretary may make grants to a non-
profit organization described in subsection (b).
``(2) Authorization of appropriations.--In addition to
amounts authorized under section 6107, there is authorized to
be appropriated for making grants under this subsection
$500,000 for each of fiscal years 2003 through 2006. Such
sums shall remain available until expended.
``(3) General revenue funding.--Any sums appropriated under
this subsection shall be derived from general revenues and
may not be derived from amounts collected under section
60301.''.
[[Page H8984]]
(2) Conforming amendment.--The analysis for chapter 61 is
amended by striking the item relating to section 6105 and
inserting the following:
``6105. Implementation of best practices guidelines.''.
(d) Authorization of Appropriations.--
(1) For grants for states.--Section 6107(a) is amended by
striking ``$1,000,000 for fiscal year 2000'' and all that
follows before the period at the end of the first sentence
and inserting ``$1,000,000 for each of fiscal years 2003
through 2006''.
(2) For administration.--Section 6107(b) is amended by
striking ``for fiscal years 1999, 2000, and 2001'' and
inserting ``for fiscal years 2003 through 2006''.
SEC. 3. ONE-CALL NOTIFICATION OF PIPELINE OPERATORS.
(a) Limitation on Preemption.--Section 60104(c) is amended
by adding at the end the following: ``Notwithstanding the
preceding sentence, a State authority may enforce a
requirement of a one-call notification program of the State
if the program meets the requirements for one-call
notification programs under this chapter or chapter 61.''.
(b) Minimum Requirements.--Section 60114(a)(2) is amended
by inserting ``, including a government employee or
contractor,'' after ``person''.
(c) Criminal Penalties.--Section 60123(d) is amended--
(1) in the matter preceding paragraph (1) by striking
``knowingly and willfully'';
(2) in paragraph (1) by inserting ``knowingly and
willfully'' before ``engages'';
(3) by striking paragraph (2)(B) and inserting the
following:
``(B) a pipeline facility, and knows or has reason to know
of the damage, but does not report the damage promptly to the
operator of the pipeline facility and to other appropriate
authorities; or''; and
(4) by adding after paragraph (2) the following:
``Penalties under this subsection may be reduced in the case
of a violation that is promptly reported by the violator.''.
SEC. 4. STATE OVERSIGHT ROLE.
(a) State Agreements With Certification.--Section 60106 is
amended--
(1) in subsection (a) by striking ``General Authority.--''
and inserting ``Agreements Without Certification.--'';
(2) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively; and
(3) by inserting after subsection (a) the following:
``(b) Agreements With Certification.--
``(1) In general.--If the Secretary accepts a certification
under section 60105 and makes the determination required
under this subsection, the Secretary may make an agreement
with a State authority authorizing it to participate in the
oversight of interstate pipeline transportation. Each such
agreement shall include a plan for the State authority to
participate in special investigations involving incidents or
new construction and allow the State authority to participate
in other activities overseeing interstate pipeline
transportation or to assume additional inspection or
investigatory duties. Nothing in this section modifies
section 60104(c) or authorizes the Secretary to delegate the
enforcement of safety standards for interstate pipeline
facilities prescribed under this chapter to a State
authority.
``(2) Determinations required.--The Secretary may not enter
into an agreement under this subsection, unless the Secretary
determines in writing that--
``(A) the agreement allowing participation of the State
authority is consistent with the Secretary's program for
inspection and consistent with the safety policies and
provisions provided under this chapter;
``(B) the interstate participation agreement would not
adversely affect the oversight responsibilities of intrastate
pipeline transportation by the State authority;
``(C) the State is carrying out a program demonstrated to
promote preparedness and risk prevention activities that
enable communities to live safely with pipelines;
``(D) the State meets the minimum standards for State one-
call notification set forth in chapter 61; and
``(E) the actions planned under the agreement would not
impede interstate commerce or jeopardize public safety.
``(3) Existing agreements.--If requested by the State
authority, the Secretary shall authorize a State authority
which had an interstate agreement in effect after January 31,
1999, to oversee interstate pipeline transportation pursuant
to the terms of that agreement until the Secretary determines
that the State meets the requirements of paragraph (2) and
executes a new agreement, or until December 31, 2003,
whichever is sooner. Nothing in this paragraph shall prevent
the Secretary, after affording the State notice, hearing, and
an opportunity to correct any alleged deficiencies, from
terminating an agreement that was in effect before enactment
of the Pipeline Safety Improvement Act of 2002 if--
``(A) the State authority fails to comply with the terms of
the agreement;
``(B) implementation of the agreement has resulted in a gap
in the oversight responsibilities of intrastate pipeline
transportation by the State authority; or
``(C) continued participation by the State authority in the
oversight of interstate pipeline transportation has had an
adverse impact on pipeline safety.''.
(b) Ending Agreements.--Subsection (e) of section 60106 (as
redesignated by subsection (a)(2) of this section) is amended
to read as follows:
``(e) Ending Agreements.--
``(1) Permissive termination.--The Secretary may end an
agreement under this section when the Secretary finds that
the State authority has not complied with any provision of
the agreement.
``(2) Mandatory termination of agreement.--The Secretary
shall end an agreement for the oversight of interstate
pipeline transportation if the Secretary finds that--
``(A) implementation of such agreement has resulted in a
gap in the oversight responsibilities of intrastate pipeline
transportation by the State authority;
``(B) the State actions under the agreement have failed to
meet the requirements under subsection (b); or
``(C) continued participation by the State authority in the
oversight of interstate pipeline transportation would not
promote pipeline safety.
``(3) Procedural requirements.--The Secretary shall give
notice and an opportunity for a hearing to a State authority
before ending an agreement under this section. The Secretary
may provide a State an opportunity to correct any
deficiencies before ending an agreement. The finding and
decision to end the agreement shall be published in the
Federal Register and may not become effective for at least 15
days after the date of publication unless the Secretary finds
that continuation of an agreement poses an imminent
hazard.''.
(c) Secretary's Response to State Notices of Violations.--
Subsection (c) of section 60106 (as redesignated by
subsection (a)(2) of this section) is amended--
(1) by striking ``Each agreement'' and inserting the
following:
``(1) In general.--Each agreement'';
(2) by adding at the end the following:
``(2) Response by secretary.--If a State authority notifies
the Secretary under paragraph (1) of a violation or probable
violation of an applicable safety standard, the Secretary,
not later than 60 days after the date of receipt of the
notification, shall--
``(A) issue an order under section 60118(b) or take other
appropriate enforcement actions to ensure compliance with
this chapter; or
``(B) provide the State authority with a written
explanation as to why the Secretary has determined not to
take such actions.''; and
(3) by aligning the text of paragraph (1) (as designated by
this subsection) with paragraph (2) (as added by this
subsection).
SEC. 5. PUBLIC EDUCATION PROGRAMS.
Section 60116 is amended to read as follows:
``Sec. 60116. Public education programs
``(a) In General.--Each owner or operator of a gas or
hazardous liquid pipeline facility shall carry out a
continuing program to educate the public on the use of a one-
call notification system prior to excavation and other damage
prevention activities, the possible hazards associated with
unintended releases from the pipeline facility, the physical
indications that such a release may have occurred, what steps
should be taken for public safety in the event of a pipeline
release, and how to report such an event.
``(b) Modification of Existing Programs.--Not later than 12
months after the date of enactment of the Pipeline Safety
Improvement Act of 2002, each owner or operator of a gas or
hazardous liquid pipeline facility shall review its existing
public education program for effectiveness and modify the
program as necessary. The completed program shall include
activities to advise affected municipalities, school
districts, businesses, and residents of pipeline facility
locations. The completed program shall be submitted to the
Secretary or, in the case of an intrastate pipeline facility
operator, the appropriate State agency, and shall be
periodically reviewed by the Secretary or, in the case of an
intrastate pipeline facility operator, the appropriate State
agency.
``(c) Standards.--The Secretary may issue standards
prescribing the elements of an effective public education
program. The Secretary may also develop material for use in
the program.''.
SEC. 6. PROTECTION OF EMPLOYEES PROVIDING PIPELINE SAFETY
INFORMATION.
(a) In General.--Chapter 601 is amended by adding at the
end the following:
``Sec. 60129. Protection of employees providing pipeline
safety information
``(a) Discrimination Against Employee.--
``(1) In general.--No employer may discharge any employee
or otherwise discriminate against any employee with respect
to his compensation, terms, conditions, or privileges of
employment because the employee (or any person acting
pursuant to a request of the employee)--
``(A) provided, caused to be provided, or is about to
provide or cause to be provided, to the employer or the
Federal Government information relating to any violation or
alleged violation of any order, regulation, or standard under
this chapter or any other Federal law relating to pipeline
safety;
``(B) refused to engage in any practice made unlawful by
this chapter or any other Federal law relating to pipeline
safety, if the employee has identified the alleged illegality
to the employer;
``(C) provided, caused to be provided, or is about to
provide or cause to be provided, testimony before Congress or
at any Federal or State proceeding regarding any provision
(or proposed provision) of this chapter or any other Federal
law relating to pipeline safety;
``(D) commenced, caused to be commenced, or is about to
commence or cause to be commenced a proceeding under this
chapter or any other Federal law relating to pipeline safety,
or a proceeding for the administration or enforcement of any
requirement imposed under this chapter or any other Federal
law relating to pipeline safety;
[[Page H8985]]
``(E) provided, caused to be provided, or is about to
provide or cause to be provided, testimony in any proceeding
described in subparagraph (D); or
``(F) assisted or participated or is about to assist or
participate in any manner in such a proceeding or in any
other manner in such a proceeding or in any other action to
carry out the purposes of this chapter or any other Federal
law relating to pipeline safety.
``(2) Employer defined.--In this section, the term
`employer' means--
``(A) a person owning or operating a pipeline facility; or
``(B) a contractor or subcontractor of such a person.
``(b) Department of Labor Complaint Procedure.--
``(1) Filing and notification.--A person who believes that
he or she has been discharged or otherwise discriminated
against by any person in violation of subsection (a) may, not
later than 180 days after the date on which such violation
occurs, file (or have any person file on his or her behalf) a
complaint with the Secretary of Labor alleging such discharge
or discrimination. Upon receipt of such a complaint, the
Secretary of Labor shall notify, in writing, the person or
persons named in the complaint and the Secretary of
Transportation of the filing of the complaint, of the
allegations contained in the complaint, of the substance of
evidence supporting the complaint, and of the opportunities
that will be afforded to such person or persons under
paragraph (2).
``(2) Investigation; preliminary order.--
``(A) In general.--Not later than 60 days after the date of
receipt of a complaint filed under paragraph (1) and after
affording the person or persons named in the complaint an
opportunity to submit to the Secretary of Labor a written
response to the complaint and an opportunity to meet with a
representative of the Secretary of Labor to present
statements from witnesses, the Secretary of Labor shall
conduct an investigation and determine whether there is
reasonable cause to believe that the complaint has merit and
notify in writing the complainant and the person or persons
alleged to have committed a violation of subsection (a) of
the Secretary of Labor's findings. If the Secretary of Labor
concludes that there is reasonable cause to believe that a
violation of subsection (a) has occurred, the Secretary of
Labor shall include with the Secretary of Labor's findings
with a preliminary order providing the relief prescribed by
paragraph (3)(B). Not later than 60 days after the date of
notification of findings under this subparagraph, any person
alleged to have committed a violation or the complainant may
file objections to the findings or preliminary order, or
both, and request a hearing on the record. The filing of such
objections shall not operate to stay any reinstatement remedy
contained in the preliminary order. Such hearings shall be
conducted expeditiously. If a hearing is not requested in
such 60-day period, the preliminary order shall be deemed a
final order that is not subject to judicial review.
``(B) Requirements.--
``(i) Required showing by complainant.--The Secretary of
Labor shall dismiss a complaint filed under this subsection
and shall not conduct an investigation otherwise required
under subparagraph (A) unless the complainant makes a prima
facie showing that any behavior described in subsection (a)
was a contributing factor in the unfavorable personnel action
alleged in the complaint.
``(ii) Showing by employer.--Notwithstanding a finding by
the Secretary of Labor that the complainant has made the
showing required under clause (i), no investigation otherwise
required under subparagraph (A) shall be conducted if the
employer demonstrates, by clear and convincing evidence, that
the employer would have taken the same unfavorable personnel
action in the absence of that behavior.
``(iii) Criteria for determination by Secretary.--The
Secretary of Labor may determine that a violation of
subsection (a) has occurred only if the complainant
demonstrates that any behavior described in subsection (a)
was a contributing factor in the unfavorable personnel action
alleged in the complaint.
``(iv) Prohibition.--Relief may not be ordered under
subparagraph (A) if the employer demonstrates by clear and
convincing evidence that the employer would have taken the
same unfavorable personnel action in the absence of that
behavior.
``(3) Final order.--
``(A) Deadline for issuance; settlement agreements.--Not
later than 90 days after the date of conclusion of a hearing
under paragraph (2), the Secretary of Labor shall issue a
final order providing the relief prescribed by this paragraph
or denying the complaint. At any time before issuance of a
final order, a proceeding under this subsection may be
terminated on the basis of a settlement agreement entered
into by the Secretary of Labor, the complainant, and the
person or persons alleged to have committed the violation.
``(B) Remedy.--If, in response to a complaint filed under
paragraph (1), the Secretary of Labor determines that a
violation of subsection (a) has occurred, the Secretary of
Labor shall order the person or persons who committed such
violation to--
``(i) take affirmative action to abate the violation;
``(ii) reinstate the complainant to his or her former
position together with the compensation (including back pay)
and restore the terms, conditions, and privileges associated
with his or her employment; and
``(iii) provide compensatory damages to the complainant.
If such an order is issued under this paragraph, the
Secretary of Labor, at the request of the complainant, shall
assess against the person or persons against whom the order
is issued a sum equal to the aggregate amount of all costs
and expenses (including attorney's and expert witness fees)
reasonably incurred, as determined by the Secretary of Labor,
by the complainant for, or in connection with, the bringing
the complaint upon which the order was issued.
``(C) Frivolous complaints.--If the Secretary of Labor
finds that a complaint under paragraph (1) is frivolous or
has been brought in bad faith, the Secretary of Labor may
award to the prevailing employer a reasonable attorney's fee
not exceeding $1,000.
``(4) Review.--
``(A) Appeal to court of appeals.--Any person adversely
affected or aggrieved by an order issued under paragraph (3)
may obtain review of the order in the United States Court of
Appeals for the circuit in which the violation, with respect
to which the order was issued, allegedly occurred or the
circuit in which the complainant resided on the date of such
violation. The petition for review must be filed not later
than 60 days after the date of issuance of the final order of
the Secretary of Labor. Review shall conform to chapter 7 of
title 5, United States Code. The commencement of proceedings
under this subparagraph shall not, unless ordered by the
court, operate as a stay of the order.
``(B) Limitation on collateral attack.--An order of the
Secretary of Labor with respect to which review could have
been obtained under subparagraph (A) shall not be subject to
judicial review in any criminal or other civil proceeding.
``(5) Enforcement of order by secretary of labor.--Whenever
any person has failed to comply with an order issued under
paragraph (3), the Secretary of Labor may file a civil action
in the United States district court for the district in which
the violation was found to occur to enforce such order. In
actions brought under this paragraph, the district courts
shall have jurisdiction to grant all appropriate relief,
including, but not to be limited to, injunctive relief and
compensatory damages.
``(6) Enforcement of order by parties.--
``(A) Commencement of action.--A person on whose behalf an
order was issued under paragraph (3) may commence a civil
action against the person or persons to whom such order was
issued to require compliance with such order. The appropriate
United States district court shall have jurisdiction, without
regard to the amount in controversy or the citizenship of the
parties, to enforce such order.
``(B) Attorney fees.--The court, in issuing any final order
under this paragraph, may award costs of litigation
(including reasonable attorney and expert witness fees) to
any party whenever the court determines such award of costs
is appropriate.
``(c) Mandamus.--Any nondiscretionary duty imposed by this
section shall be enforceable in a mandamus proceeding brought
under section 1361 of title 28, United States Code.
``(d) Nonapplicability To Deliberate Violations.--
Subsection (a) shall not apply with respect to an action of
an employee of an employer who, acting without direction from
the employer (or such employer's agent), deliberately causes
a violation of any requirement relating to pipeline safety
under this chapter or any other law of the United States.''.
(b) Civil Penalty.--Section 60122(a) is amended by adding
at the end the following:
``(3) A person violating section 60129, or an order issued
thereunder, is liable to the Government for a civil penalty
of not more than $1,000 for each violation. The penalties
provided by paragraph (1) do not apply to a violation of
section 60129 or an order issued thereunder.''.
(c) Conforming Amendment.--The analysis for chapter 601 is
amended by adding at the end the following:
``60129. Protection of employees providing pipeline safety
information.''.
SEC. 7. SAFETY ORDERS.
Section 60117 is amended by adding at the end the
following:
``(l) Safety Orders.--If the Secretary decides that a
pipeline facility has a potential safety-related condition,
the Secretary may order the operator of the facility to take
necessary corrective action, including physical inspection,
testing, repair, replacement, or other appropriate action to
remedy the safety-related condition.''.
SEC. 8. PENALTIES.
(a) Pipeline Facilities Hazardous to Life, Property, or the
Environment.--
(1) General authority.--Section 60112(a) is amended to read
as follows:
``(a) General Authority.--After notice and an opportunity
for a hearing, the Secretary of Transportation may decide
that a pipeline facility is hazardous if the Secretary
decides that--
``(1) operation of the facility is or would be hazardous to
life, property, or the environment; or
``(2) the facility is or would be constructed or operated,
or a component of the facility is or would be constructed or
operated, with equipment, material, or a technique that the
Secretary decides is hazardous to life, property, or the
environment.''.
(2) Corrective action orders.--Section 60112(d) is amended
by striking ``is hazardous'' and inserting ``is or would be
hazardous''.
(b) Enforcement.--
(1) General penalties.--Section 60122(a)(1) is amended--
(A) by striking ``$25,000'' and inserting ``$100,000''; and
(B) by striking ``$500,000'' and inserting ``$1,000,000''.
(2) Penalty considerations.--Section 60122(b) is amended by
striking ``under this section'' and all that follows through
paragraph (4) and inserting ``under this section--
``(1) the Secretary shall consider--
``(A) the nature, circumstances, and gravity of the
violation, including adverse impact on the environment;
[[Page H8986]]
``(B) with respect to the violator, the degree of
culpability, any history of prior violations, the ability to
pay, and any effect on ability to continue doing business;
and
``(C) good faith in attempting to comply; and
``(2) the Secretary may consider--
``(A) the economic benefit gained from the violation
without any reduction because of subsequent damages; and
``(B) other matters that justice requires.''.
(3) Civil actions.--Section 60120(a) is amended--
(A) by striking ``(a) Civil Actions.--(1)'' and all that
follows through ``(2) At the request'' and inserting the
following:
``(a) Civil Actions.--
``(1) Civil actions to enforce this chapter.--At the
request of the Secretary of Transportation, the Attorney
General may bring a civil action in an appropriate district
court of the United States to enforce this chapter, including
section 60112, or a regulation prescribed or order issued
under this chapter. The court may award appropriate relief,
including a temporary or permanent injunction, punitive
damages, and assessment of civil penalties, considering the
same factors as prescribed for the Secretary in an
administrative case under section 60122.
``(2) Civil actions to require compliance with subpoenas or
allow for inspections.--At the request''; and
(B) by aligning the remainder of the text of paragraph (2)
with the text of paragraph (1).
(c) Criminal Penalties for Damaging or Destroying a
Facility.--Section 60123(b) is amended--
(1) by striking ``or'' after ``gas pipeline facility'' and
inserting ``, an''; and
(2) by inserting after ``liquid pipeline facility'' the
following: ``, or either an intrastate gas pipeline facility
or intrastate hazardous liquid pipeline facility that is used
in interstate or foreign commerce or in any activity
affecting interstate or foreign commerce''.
(d) Comptroller General Study.--
(1) In general.--The Comptroller General shall conduct a
study of the actions, policies, and procedures of the
Secretary of Transportation for assessing and collecting
fines and penalties on operators of hazardous liquid and gas
transmission pipelines.
(2) Analysis.--In conducting the study, the Comptroller
General shall examine, at a minimum, the following:
(A) The frequency with which the Secretary has substituted
corrective orders for fines and penalties.
(B) Changes in the amounts of fines recommended by safety
inspectors, assessed by the Secretary, and actually
collected.
(C) An evaluation of the overall effectiveness of the
Secretary's enforcement strategy.
(D) The extent to which the Secretary has complied with the
report of the Government Accounting Office entitled
``Pipeline Safety: The Office of Pipeline Safety is Changing
How it Oversees the Pipeline Industry''.
(3) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall transmit
to the Committee on Commerce, Science, and Transportation of
the Senate and the Committees on Transportation and
Infrastructure and Energy and Commerce of the House of
Representatives a report on the results of the study.
SEC. 9. PIPELINE SAFETY INFORMATION GRANTS TO COMMUNITIES.
(a) In General.--Chapter 601 is further amended by adding
at the end the following:
``Sec. 60130. Pipeline safety information grants to
communities
``(a) Grant Authority.--
``(1) In general.--The Secretary of Transportation may make
grants for technical assistance to local communities and
groups of individuals (not including for-profit entities)
relating to the safety of pipeline facilities in local
communities, other than facilities regulated under Public Law
93-153 (43 U.S.C. 1651 et seq.). The Secretary shall
establish competitive procedures for awarding grants under
this section and criteria for selecting grant recipients. The
amount of any grant under this section may not exceed $50,000
for a single grant recipient. The Secretary shall establish
appropriate procedures to ensure the proper use of funds
provided under this section.
``(2) Technical assistance defined.--In this subsection,
the term `technical assistance' means engineering and other
scientific analysis of pipeline safety issues, including the
promotion of public participation in official proceedings
conducted under this chapter.
``(b) Prohibited Uses.--Funds provided under this section
may not be used for lobbying or in direct support of
litigation.
``(c) Annual Report.--
``(1) In general.--Not later than 90 days after the last
day of each fiscal year for which grants are made by the
Secretary under this section, the Secretary shall report to
the Committees on Commerce, Science, and Transportation and
Energy and Natural Resources of the Senate and the Committees
on Transportation and Infrastructure and Energy and Commerce
of the House of Representatives on grants made under this
section in the preceding fiscal year.
``(2) Contents.--The report shall include--
``(A) a listing of the identity and location of each
recipient of a grant under this section in the preceding
fiscal year and the amount received by the recipient;
``(B) a description of the purpose for which each grant was
made; and
``(C) a description of how each grant was used by the
recipient.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary of Transportation for
carrying out this section $1,000,000 for each of the fiscal
years 2003 through 2006. Such amounts shall not be derived
from user fees collected under section 60301.''.
(c) Conforming Amendment.--The analysis for chapter 601 is
amended by adding at the end the following:
``60130. Pipeline safety information grants to communities.''.
SEC. 10. OPERATOR ASSISTANCE IN INVESTIGATIONS.
(a) In General.--Section 60118 is amended by adding at the
end the following:
``(e) Operator Assistance in Investigations.--If the
Secretary or the National Transportation Safety Board
investigate an accident involving a pipeline facility, the
operator of the facility shall make available to the
Secretary or the Board all records and information that in
any way pertain to the accident (including integrity
management plans and test results), and shall afford all
reasonable assistance in the investigation of the
accident.''.
(b) Corrective Action Orders.--Section 60112(d) is
amended--
(1) by striking ``If the Secretary'' and inserting the
following:
``(1) In general.--If the Secretary'';
(2) by adding the end the following:
``(2) Actions attributable to an employee.--If, in the case
of a corrective action order issued following an accident,
the Secretary determines that the actions of an employee
carrying out an activity regulated under this chapter,
including duties under section 60102(a), may have contributed
substantially to the cause of the accident, the Secretary
shall direct the operator to relieve the employee from
performing those activities, reassign the employee, or place
the employee on leave until the earlier of the date on
which--
``(A) the Secretary, after notice and an opportunity for a
hearing, determines that the employee's actions did not
contribute substantially to the cause of the accident; or
``(B) the Secretary determines the employee has been re-
qualified or re-trained as provided for in section 60131 and
can safely perform those activities.
``(3) Effect of collective bargaining agreements.--An
action taken by an operator under paragraph (2) shall be in
accordance with the terms and conditions of any applicable
collective bargaining agreement.''; and
(3) by aligning the remainder of the text of paragraph (1)
(as designated by paragraph (1) of this subsection) with
paragraph (2) (as added by paragraph (2) of this subsection).
(c) Limitation on Statutory Construction.--Section 60118 is
amended by adding at the end the following:
``(f) Limitation on Statutory Construction.--Nothing in
this section may be construed to infringe upon the
constitutional rights of an operator or its employees.''.
SEC. 11. POPULATION ENCROACHMENT AND RIGHTS-OF-WAY.
(a) In General.--Section 60127 is amended to read as
follows:
``Sec. 60127. Population encroachment and rights-of-way
``(a) Study.--The Secretary of Transportation, in
conjunction with the Federal Energy Regulatory Commission and
in consultation with appropriate Federal agencies and State
and local governments, shall undertake a study of land use
practices, zoning ordinances, and preservation of
environmental resources with regard to pipeline rights-of-way
and their maintenance.
``(b) Purpose of Study.--The purpose of the study shall be
to gather information on land use practices, zoning
ordinances, and preservation of environmental resources--
``(1) to determine effective practices to limit
encroachment on existing pipeline rights-of-way;
``(2) to address and prevent the hazards and risks to the
public, pipeline workers, and the environment associated with
encroachment on pipeline rights-of-way;
``(3) to raise the awareness of the risks and hazards of
encroachment on pipeline rights-of-way; and
``(4) to address how to best preserve environmental
resources in conjunction with maintaining pipeline rights-of-
way, recognizing pipeline operators' regulatory obligations
to maintain rights-of-way and to protect public safety.
``(c) Considerations.--In conducting the study, the
Secretary shall consider, at a minimum, the following:
``(1) The legal authority of Federal agencies and State and
local governments in controlling land use and the limitations
on such authority.
``(2) The current practices of Federal agencies and State
and local governments in addressing land use issues involving
a pipeline easement.
``(3) The most effective way to encourage Federal agencies
and State and local governments to monitor and reduce
encroachment upon pipeline rights-of-way.
``(d) Report.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall publish a
report identifying practices, laws, and ordinances that are
most successful in addressing issues of encroachment and
maintenance on pipeline rights-of-way so as to more
effectively protect public safety, pipeline workers, and the
environment.
``(2) Distribution of report.--The Secretary shall provide
a copy of the report to--
``(A) Congress and appropriate Federal agencies; and
``(B) States for further distribution to appropriate local
authorities.
``(3) Adoption of practices, laws, and ordinances.--The
Secretary shall encourage Federal agencies and State and
local governments to adopt and implement appropriate
practices, laws, and ordinances, as identified in the report,
to address the risks and hazards associated
[[Page H8987]]
with encroachment upon pipeline rights-of-way and to address
the potential methods of preserving environmental resources
while maintaining pipeline rights-of-way, consistent with
pipeline safety.''.
(b) Conforming Amendment.--The analysis for chapter 601 is
amended by striking the item relating to section 60127 and
inserting the following:
``60127. Population encroachment and rights-of-way.''.
SEC. 12. PIPELINE INTEGRITY, SAFETY, AND RELIABILITY RESEARCH
AND DEVELOPMENT.
(a) In General.--The heads of the participating agencies
shall carry out a program of research, development,
demonstration, and standardization to ensure the integrity of
pipeline facilities.
(b) Memorandum of Understanding.--
(1) In general.--Not later than 120 days after the date of
enactment of this Act, the heads of the participating
agencies shall enter into a memorandum of understanding
detailing their respective responsibilities in the program
authorized by subsection (a).
(2) Areas of expertise.--Under the memorandum of
understanding, each of the participating agencies shall have
the primary responsibility for ensuring that the elements of
the program within its expertise are implemented in
accordance with this section. The Department of
Transportation's responsibilities shall reflect its lead role
in pipeline safety and expertise in pipeline inspection,
integrity management, and damage prevention. The Department
of Energy's responsibilities shall reflect its expertise in
system reliability, low-volume gas leak detection, and
surveillance technologies. The National Institute of
Standards and Technology's responsibilities shall reflect its
expertise in materials research and assisting in the
development of consensus technical standards, as that term is
used in section 12(d)(4) of Public Law 104-13 (15 U.S.C. 272
note).
(c) Program Elements.--The program authorized by subsection
(a) shall include research, development, demonstration, and
standardization activities related to--
(1) materials inspection;
(2) stress and fracture analysis, detection of cracks,
corrosion, abrasion, and other abnormalities inside pipelines
that lead to pipeline failure, and development of new
equipment or technologies that are inserted into pipelines to
detect anomalies;
(3) internal inspection and leak detection technologies,
including detection of leaks at very low volumes;
(4) methods of analyzing content of pipeline throughput;
(5) pipeline security, including improving the real-time
surveillance of pipeline rights-of-way, developing tools for
evaluating and enhancing pipeline security and
infrastructure, reducing natural, technological, and
terrorist threats, and protecting first response units and
persons near an incident;
(6) risk assessment methodology, including vulnerability
assessment and reduction of third-party damage;
(7) communication, control, and information systems surety;
(8) fire safety of pipelines;
(9) improved excavation, construction, and repair
technologies; and
(10) other appropriate elements.
(d) Program Plan.--
(1) In general.--Not later than 1 year after the date of
enactment of this section, the Secretary of Transportation,
in coordination with the Secretary of Energy and the Director
of the National Institute of Standards and Technology, shall
prepare and transmit to Congress a 5-year program plan to
guide activities under this section. Such program plan shall
be submitted to the Technical Pipeline Safety Standards
Committee and the Technical Hazardous Liquid Pipeline Safety
Standards Committee for review, and the report to Congress
shall include the comments of the committees. The 5-year
program plan shall be based on the memorandum of
understanding under subsection (b) and take into account
related activities of other Federal agencies.
(2) Consultation.--In preparing the program plan and
selecting and prioritizing appropriate project proposals, the
Secretary of Transportation shall consult with or seek the
advice of appropriate representatives of the natural gas,
crude oil, and petroleum product pipeline industries,
utilities, manufacturers, institutions of higher learning,
Federal agencies, pipeline research institutions, national
laboratories, State pipeline safety officials, labor
organizations, environmental organizations, pipeline safety
advocates, and professional and technical societies.
(e) Reports to Congress.--Not later than 1 year after the
date of enactment of this Act, and annually thereafter, the
heads of the participating agencies shall transmit jointly to
Congress a report on the status and results to date of the
implementation of the program plan prepared under subsection
(d).
(f) Authorization of Appropriations.--
(1) Department of transportation.--There is authorized to
be appropriated to the Secretary of Transportation for
carrying out this section $10,000,000 for each of the fiscal
years 2003 through 2006.
(2) Department of energy.--There is authorized to be
appropriated to the Secretary of Energy for carrying out this
section $10,000,000 for each of the fiscal years 2003 through
2006.
(3) National institute of standards and technology.--There
is authorized to be appropriated to the Director of the
National Institute of Standards and Technology for carrying
out this section $5,000,000 for each of the fiscal years 2003
through 2006.
(4) General revenue funding.--Any sums appropriated under
this subsection shall be derived from general revenues and
may not be derived from amounts collected under section 60301
of title 49, United States Code.
(g) Pipeline Integrity Program.--Of the amounts available
in the Oil Spill Liability Trust Fund established by section
9509 of the Internal Revenue Code of 1986 (26 U.S.C. 9509),
$3,000,000 shall be transferred to the Secretary of
Transportation, as provided in appropriation Acts, to carry
out programs for detection, prevention, and mitigation of oil
spills for each of the fiscal years 2003 through 2006.
(h) Participating Agencies Defined.--In this section, the
term ``participating agencies'' means the Department of
Transportation, the Department of Energy, and the National
Institute of Standards and Technology.
SEC. 13. PIPELINE QUALIFICATION PROGRAMS.
(a) Verification Program.--
(1) In general.--Chapter 601 is further amended by adding
at the end the following:
``Sec. 60131. Verification of pipeline qualification programs
``(a) In General.--Subject to the requirements of this
section, the Secretary of Transportation shall require the
operator of a pipeline facility to develop and adopt a
qualification program to ensure that the individuals who
perform covered tasks are qualified to conduct such tasks.
``(b) Standards and Criteria.--
``(1) Development.--Not later than 1 year after the date of
enactment of this section, the Secretary shall ensure that
the Department of Transportation has in place standards and
criteria for qualification programs referred to in subsection
(a).
``(2) Contents.--The standards and criteria shall include
the following:
``(A) The establishment of methods for evaluating the
acceptability of the qualifications of individuals described
in subsection (a).
``(B) A requirement that pipeline operators develop and
implement written plans and procedures to qualify individuals
described in subsection (a) to a level found acceptable using
the methods established under subparagraph (A) and evaluate
the abilities of individuals described in subsection (a)
according to such methods.
``(C) A requirement that the plans and procedures adopted
by a pipeline operator under subparagraph (B) be reviewed and
verified under subsection (e).
``(c) Development of Qualification Programs by Pipeline
Operators.--The Secretary shall require each pipeline
operator to develop and adopt, not later than 2 years after
the date of enactment of this section, a qualification
program that complies with the standards and criteria
described in subsection (b).
``(d) Elements of Qualification Programs.--A qualification
program adopted by an operator under subsection (a) shall
include, at a minimum, the following elements:
``(1) A method for examining or testing the qualifications
of individuals described in subsection (a). The method may
include written examination, oral examination, observation
during on-the-job performance, on-the-job training,
simulations, and other forms of assessment. The method may
not be limited to observation of on-the-job performance,
except with respect to tasks for which the Secretary has
determined that such observation is the best method of
examining or testing qualifications. The Secretary shall
ensure that the results of any such observations are
documented in writing.
``(2) A requirement that the operator complete the
qualification of all individuals described in subsection (a)
not later than 18 months after the date of adoption of the
qualification program.
``(3) A periodic requalification component that provides
for examination or testing of individuals in accordance with
paragraph (1).
``(4) A program to provide training, as appropriate, to
ensure that individuals performing covered tasks have the
necessary knowledge and skills to perform the tasks in a
manner that ensures the safe operation of pipeline
facilities.
``(e) Review and Verification of Programs.--
``(1) In general.--The Secretary shall review the
qualification program of each pipeline operator and verify
its compliance with the standards and criteria described in
subsection (b) and that it includes the elements described in
subsection (d). The Secretary shall record the results of
that review for use in the next review of an operator's
program.
``(2) Deadline for completion.--Reviews and verifications
under this subsection shall be completed not later than 3
years after the date of the enactment of this section.
``(3) Inadequate programs.--If the Secretary decides that a
qualification program is inadequate for the safe operation of
a pipeline facility, the Secretary shall act as under section
60108(a)(2) to require the operator to revise the
qualification program.
``(4) Program modifications.--If the operator of a pipeline
facility significantly modifies a program that has been
verified under this subsection, the operator shall notify the
Secretary of the modifications. The Secretary shall review
and verify such modifications in accordance with paragraph
(1).
``(5) Waivers and modifications.--In accordance with
section 60118(c), the Secretary may waive or modify any
requirement of this section if the waiver or modification is
not inconsistent with pipeline safety.
``(6) Inaction by the secretary.--Notwithstanding any
failure of the Secretary to prescribe standards and criteria
as described in subsection (b), an operator of a pipeline
facility shall develop and adopt a qualification program that
complies with the requirement of subsection (b)(2)(B) and
includes the elements described in subsection (d) not later
than 2 years after the date of enactment of this section.
``(f) Intrastate Pipeline Facilities.--In the case of an
intrastate pipeline facility operator,
[[Page H8988]]
the duties and powers of the Secretary under this section
with respect to the qualification program of the operator
shall be vested in the appropriate State regulatory agency,
consistent with this chapter.
``(g) Covered Task Defined.--In this section, the term
`covered task'--
``(1) with respect to a gas pipeline facility, has the
meaning such term has under section 192.801 of title 49, Code
of Federal Regulations, including any subsequent
modifications; and
``(2) with respect to a hazardous liquid pipeline facility,
has the meaning such term has under section 195.501 of such
title, including any subsequent modifications.
``(h) Report.--Not later than 4 years after the date of
enactment of this section, the Secretary shall transmit to
Congress a report on the status and results to date of the
personnel qualification regulations issued under this
chapter.''.
(2) Conforming amendment.--The analysis for chapter 601 is
amended by adding at end the following:
``60131. Verification of pipeline qualification programs.''.
(b) Pilot Program for Certification of Certain Pipeline
Workers.--
(1) In general.--Not later than 36 months after the date of
enactment of this Act, the Secretary of Transportation
shall--
(A) develop tests and other requirements for certifying the
qualifications of individuals who operate computer-based
systems for controlling the operations of pipelines; and
(B) establish and carry out a pilot program for 3 pipeline
facilities under which the individuals operating computer-
based systems for controlling the operations of pipelines at
such facilities are required to be certified under the
process established under subparagraph (A).
(2) Report.--The Secretary shall include in the report
required under section 60131(h), as added by subsection (a)
of this section, the results of the pilot program. The report
shall include--
(A) a description of the pilot program and implementation
of the pilot program at each of the 3 pipeline facilities;
(B) an evaluation of the pilot program, including the
effectiveness of the process for certifying individuals who
operate computer-based systems for controlling the operations
of pipelines;
(C) any recommendations of the Secretary for requiring the
certification of all individuals who operate computer-based
systems for controlling the operations of pipelines; and
(D) an assessment of the ramifications of requiring the
certification of other individuals performing safety-
sensitive functions for a pipeline facility.
(3) Computer-based systems defined.--In this subsection,
the term ``computer-based systems'' means supervisory control
and data acquisition systems.
SEC. 14. RISK ANALYSIS AND INTEGRITY MANAGEMENT PROGRAMS FOR
GAS PIPELINES.
(a) In General.--Section 60109 is amended by adding at the
end the following:
``(c) Risk Analysis and Integrity Management Programs.--
``(1) Requirement.--Each operator of a gas pipeline
facility shall conduct an analysis of the risks to each
facility of the operator located in an area identified
pursuant to subsection (a)(1) and defined in chapter 192 of
title 49, Code of Federal Regulations, including any
subsequent modifications, and shall adopt and implement a
written integrity management program for such facility to
reduce the risks.
``(2) Regulations.--
``(A) In general.--Not later than 12 months after the date
of enactment of this subsection, the Secretary shall issue
regulations prescribing standards to direct an operator's
conduct of a risk analysis and adoption and implementation of
an integrity management program under this subsection. The
regulations shall require an operator to conduct a risk
analysis and adopt an integrity management program within a
time period prescribed by the Secretary, ending not later
than 24 months after such date of enactment. Not later than
18 months after such date of enactment, each operator of a
gas pipeline facility shall begin a baseline integrity
assessment described in paragraph (3).
``(B) Authority to issue regulations.--The Secretary may
satisfy the requirements of this paragraph through the
issuance of regulations under this paragraph or under other
authority of law.
``(3) Minimum requirements of integrity management
programs.--An integrity management program required under
paragraph (1) shall include, at a minimum, the following
requirements:
``(A) A baseline integrity assessment of each of the
operator's facilities in areas identified pursuant to
subsection (a)(1) and defined in chapter 192 of title 49,
Code of Federal Regulations, including any subsequent
modifications, by internal inspection device, pressure
testing, direct assessment, or an alternative method that the
Secretary determines would provide an equal or greater level
of safety. The operator shall complete such assessment not
later than 10 years after the date of enactment of this
subsection. At least 50 percent of such facilities shall be
assessed not later than 5 years after such date of enactment.
The operator shall prioritize such facilities for assessment
based on all risk factors, including any previously
discovered defects or anomalies and any history of leaks,
repairs, or failures. The operator shall ensure that
assessments of facilities with the highest risks are given
priority for completion and that such assessments will be
completed not later than 5 years after such date of
enactment.
``(B) Subject to paragraph (5), periodic reassessment of
the facility, at a minimum of once every 7 years, using
methods described in subparagraph (A).
``(C) Clearly defined criteria for evaluating the results
of assessments conducted under subparagraphs (A) and (B) and
for taking actions based on such results.
``(D) A method for conducting an analysis on a continuing
basis that integrates all available information about the
integrity of the facility and the consequences of releases
from the facility.
``(E) A description of actions to be taken by the operator
to promptly address any integrity issue raised by an
evaluation conducted under subparagraph (C) or the analysis
conducted under subparagraph (D).
``(F) A description of measures to prevent and mitigate the
consequences of releases from the facility.
``(G) A method for monitoring cathodic protection systems
throughout the pipeline system of the operator to the extent
not addressed by other regulations.
``(H) If the Secretary raises a safety concern relating to
the facility, a description of the actions to be taken by the
operator to address the safety concern, including issues
raised with the Secretary by States and local authorities
under an agreement entered into under section 60106.
``(4) Treatment of baseline integrity assessments.--In the
case of a baseline integrity assessment conducted by an
operator in the period beginning on the date of enactment of
this subsection and ending on the date of issuance of
regulations under this subsection, the Secretary shall accept
the assessment as complete, and shall not require the
operator to repeat any portion of the assessment, if the
Secretary determines that the assessment was conducted in
accordance with the requirements of this subsection.
``(5) Waivers and modifications.--In accordance with
section 60118(c), the Secretary may waive or modify any
requirement for reassessment of a facility under paragraph
(3)(B) for reasons that may include the need to maintain
local product supply or the lack of internal inspection
devices if the Secretary determines that such waiver is not
inconsistent with pipeline safety.
``(6) Standards.--The standards prescribed by the Secretary
under paragraph (2) shall address each of the following
factors:
``(A) The minimum requirements described in paragraph (3).
``(B) The type or frequency of inspections or testing of
pipeline facilities, in addition to the minimum requirements
of paragraph (3)(B).
``(C) The manner in which the inspections or testing are
conducted.
``(D) The criteria used in analyzing results of the
inspections or testing.
``(E) The types of information sources that must be
integrated in assessing the integrity of a pipeline facility
as well as the manner of integration.
``(F) The nature and timing of actions selected to address
the integrity of a pipeline facility.
``(G) Such other factors as the Secretary determines
appropriate to ensure that the integrity of a pipeline
facility is addressed and that appropriate mitigative
measures are adopted to protect areas identified under
subsection (a)(1).
In prescribing those standards, the Secretary shall ensure
that all inspections required are conducted in a manner that
minimizes environmental and safety risks, and shall take into
account the applicable level of protection established by
national consensus standards organizations.
``(7) Additional optional standards.--The Secretary may
also prescribe standards requiring an operator of a pipeline
facility to include in an integrity management program under
this subsection--
``(A) changes to valves or the establishment or
modification of systems that monitor pressure and detect
leaks based on the operator's risk analysis; and
``(B) the use of emergency flow restricting devices.
``(8) Lack of regulations.--In the absence of regulations
addressing the elements of an integrity management program
described in this subsection, the operator of a pipeline
facility shall conduct a risk analysis and adopt and
implement an integrity management program described in this
subsection not later than 24 months after the date of
enactment of this subsection and shall complete the baseline
integrity assessment described in this subsection not later
than 10 years after such date of enactment. At least 50
percent of such facilities shall be assessed not later than 5
years after such date of enactment. The operator shall
prioritize such facilities for assessment based on all risk
factors, including any previously discovered defects or
anomalies and any history of leaks, repairs, or failures. The
operator shall ensure that assessments of facilities with the
highest risks are given priority for completion and that such
assessments will be completed not later than 5 years after
such date of enactment.
``(9) Review of integrity management programs.--
``(A) Review of programs.--
``(i) In general.--The Secretary shall review a risk
analysis and integrity management program under paragraph (1)
and record the results of that review for use in the next
review of an operator's program.
``(ii) Context of review.--The Secretary may conduct a
review under clause (i) as an element of the Secretary's
inspection of an operator.
``(iii) Inadequate programs.--If the Secretary determines
that a risk analysis or integrity management program does not
comply with the requirements of this subsection or
regulations issued as described in paragraph (2), or is
inadequate for the safe operation of a pipeline facility, the
Secretary shall act under section 60108(a)(2) to require the
operator to revise the risk analysis or integrity management
program.
[[Page H8989]]
``(B) Amendments to programs.--In order to facilitate
reviews under this paragraph, an operator of a pipeline
facility shall notify the Secretary of any amendment made to
the operator's integrity management program not later than 30
days after the date of adoption of the amendment. The
Secretary shall review any such amendment in accordance with
this paragraph.
``(C) Transmittal of programs to state authorities.--The
Secretary shall provide a copy of each risk analysis and
integrity management program reviewed by the Secretary under
this paragraph to any appropriate State authority with which
the Secretary has entered into an agreement under section
60106.
``(10) State review of integrity management plans.--A State
authority that enters into an agreement pursuant to section
60106, permitting the State authority to review the risk
analysis and integrity management program pursuant to
paragraph (9), may provide the Secretary with a written
assessment of the risk analysis and integrity management
program, make recommendations, as appropriate, to address
safety concerns not adequately addressed by the operator's
risk analysis or integrity management program, and submit
documentation explaining the State-proposed revisions. The
Secretary shall consider carefully the State's proposals and
work in consultation with the States and operators to address
safety concerns.
``(11) Application of standards.--Section 60104(b) shall
not apply to this section.''.
(b) Integrity Management Regulations.--Section 60109 is
further amended by adding at the end the following:
``(d) Evaluation of Integrity Management Regulations.--Not
later than 4 years after the date of enactment of this
subsection, the Comptroller General shall complete an
assessment and evaluation of the effects on public safety and
the environment of the requirements for the implementation of
integrity management programs contained in the standards
prescribed as described in subsection (c)(2).''.
(c) Conforming Amendment.--Section 60118(a) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by adding at the end the following:
``(4) conduct a risk analysis, and adopt and implement an
integrity management program, for pipeline facilities as
required under section 60109(c).''.
(d) Study of Reassessment Intervals.--
(1) Study.--The Comptroller General shall conduct a study
to evaluate the 7-year reassessment interval required by
section 60109(c)(3)(B) of title 49, United States Code, as
added by subsection (a) of this section.
(2) Report.--Not later than 4 years after the date of the
enactment of this Act, the Comptroller General shall transmit
to Congress a report on the results of the study conducted
under paragraph (1).
SEC. 15. NATIONAL PIPELINE MAPPING SYSTEM.
(a) In General.--Chapter 601 is further amended by adding
at the end the following:
``Sec. 60132. National pipeline mapping system
``(a) Information To Be Provided.--Not later than 6 months
after the date of enactment of this section, the operator of
a pipeline facility (except distribution lines and gathering
lines) shall provide to the Secretary of Transportation the
following information with respect to the facility:
``(1) Geospatial data appropriate for use in the National
Pipeline Mapping System or data in a format that can be
readily converted to geospatial data.
``(2) The name and address of the person with primary
operational control to be identified as its operator for
purposes of this chapter.
``(3) A means for a member of the public to contact the
operator for additional information about the pipeline
facilities it operates.
``(b) Updates.--A person providing information under
subsection (a) shall provide to the Secretary updates of the
information to reflect changes in the pipeline facility owned
or operated by the person and as otherwise required by the
Secretary.
``(c) Technical Assistance To Improve Local Response
Capabilities.--The Secretary may provide technical assistance
to State and local officials to improve local response
capabilities for pipeline emergencies by adapting information
available through the National Pipeline Mapping System to
software used by emergency response personnel responding to
pipeline emergencies.''.
(b) Conforming Amendment.--The analysis for chapter 601 is
amended by adding at the end the following:
``60132. National pipeline mapping system.''.
SEC. 16. COORDINATION OF ENVIRONMENTAL REVIEWS.
(a) In General.--Chapter 601 is further amended by adding
at the end the following:
``Sec. 60133. Coordination of environmental reviews
``(a) Interagency Committee.--
``(1) Establishment and purpose.--Not later than 30 days
after the date of enactment of this section, the President
shall establish an Interagency Committee to develop and
ensure implementation of a coordinated environmental review
and permitting process in order to enable pipeline operators
to commence and complete all activities necessary to carry
out pipeline repairs within any time periods specified by
rule by the Secretary.
``(2) Membership.--The Chairman of the Council on
Environmental Quality (or a designee of the Chairman) shall
chair the Interagency Committee, which shall consist of
representatives of Federal agencies with responsibilities
relating to pipeline repair projects, including each of the
following persons (or a designee thereof):
``(A) The Secretary of Transportation.
``(B) The Administrator of the Environmental Protection
Agency.
``(C) The Director of the United States Fish and Wildlife
Service.
``(D) The Assistant Administrator for Fisheries of the
National Oceanic and Atmospheric Administration.
``(E) The Director of the Bureau of Land Management.
``(F) The Director of the Minerals Management Service.
``(G) The Assistant Secretary of the Army for Civil Works.
``(H) The Chairman of the Federal Energy Regulatory
Commission.
``(3) Evaluation.--The Interagency Committee shall evaluate
Federal permitting requirements to which access, excavation,
and restoration activities in connection with pipeline
repairs described in paragraph (1) may be subject. As part of
its evaluation, the Interagency Committee shall examine the
access, excavation, and restoration practices of the pipeline
industry in connection with such pipeline repairs, and may
develop a compendium of best practices used by the industry
to access, excavate, and restore the site of a pipeline
repair.
``(4) Memorandum of understanding.--Based upon the
evaluation required under paragraph (3) and not later than 1
year after the date of enactment of this section, the members
of the Interagency Committee shall enter into a memorandum of
understanding to provide for a coordinated and expedited
pipeline repair permit review process to carry out the
purpose set forth in paragraph (1). The Interagency Committee
shall include provisions in the memorandum of understanding
identifying those repairs or categories of repairs described
in paragraph (1) for which the best practices identified
under paragraph (3), when properly employed by a pipeline
operator, would result in no more than minimal adverse
effects on the environment and for which discretionary
administrative reviews may therefore be minimized or
eliminated. With respect to pipeline repairs described in
paragraph (1) to which the preceding sentence would not be
applicable, the Interagency Committee shall include
provisions to enable pipeline operators to commence and
complete all activities necessary to carry out pipeline
repairs within any time periods specified by rule by the
Secretary. The Interagency Committee shall include in the
memorandum of understanding criteria under which permits
required for such pipeline repair activities should be
prioritized over other less urgent agency permit application
reviews. The Interagency Committee shall not enter into a
memorandum of understanding under this paragraph except by
unanimous agreement of the members of the Interagency
Committee.
``(5) State and local consultation.--In carrying out this
subsection, the Interagency Committee shall consult with
appropriate State and local environmental, pipeline safety,
and emergency response officials, and such other officials as
the Interagency Committee considers appropriate.
``(b) Implementation.--Not later than 180 days after the
completion of the memorandum of understanding required under
subsection (a)(4), each agency represented on the Interagency
Committee shall revise its regulations as necessary to
implement the provisions of the memorandum of understanding.
``(c) Savings Provisions; No Preemption.--Nothing in this
section shall be construed--
``(1) to require a pipeline operator to obtain a Federal
permit, if no Federal permit would otherwise have been
required under Federal law; or
``(2) to preempt applicable Federal, State, or local
environmental law.
``(d) Interim Operational Alternatives.--
``(1) In general.--Not later than 30 days after the date of
enactment of this section, and subject to the limitations in
paragraph (2), the Secretary of Transportation shall revise
the regulations of the Department, to the extent necessary,
to permit a pipeline operator subject to time periods for
repair specified by rule by the Secretary to implement
alternative mitigation measures until all applicable permits
have been granted.
``(2) Limitations.--The regulations issued by the Secretary
pursuant to this subsection shall not allow an operator to
implement alternative mitigation measures pursuant to
paragraph (1) unless--
``(A) allowing the operator to implement such measures
would be consistent with the protection of human health,
public safety, and the environment;
``(B) the operator, with respect to a particular repair
project, has applied for and is pursuing diligently and in
good faith all required Federal, State, and local permits to
carry out the project; and
``(C) the proposed alternative mitigation measures are not
incompatible with pipeline safety.
``(e) Ombudsman.--The Secretary shall designate an
ombudsman to assist in expediting pipeline repairs and
resolving disagreements between Federal, State, and local
permitting agencies and the pipeline operator during agency
review of any pipeline repair activity, consistent with
protection of human health, public safety, and the
environment.
``(f) State and Local Permitting Processes.--The Secretary
shall encourage States and local governments to consolidate
their respective permitting processes for pipeline repair
projects subject to any time periods for repair specified by
rule by the Secretary. The Secretary may request other
relevant Federal agencies to provide technical assistance to
States and local governments for the purpose of encouraging
such consolidation.''.
(b) Conforming Amendment.--The analysis for chapter 601 is
amended by adding at the end the following:
[[Page H8990]]
``60133. Coordination of environmental reviews.''.
SEC. 17. NATIONWIDE TOLL-FREE NUMBER SYSTEM.
Within 1 year after the date of the enactment of this Act,
the Secretary of Transportation shall, in conjunction with
the Federal Communications Commission, facility operators,
excavators, and one-call notification system operators,
provide for the establishment of a 3-digit nationwide toll-
free telephone number system to be used by State one-call
notification systems.
SEC. 18. IMPLEMENTATION OF INSPECTOR GENERAL RECOMMENDATIONS.
(a) In General.--Except as otherwise required by this Act,
the Secretary of Transportation shall implement the safety
improvement recommendations provided for in the Department of
Transportation Inspector General's Report (RT-2000-069).
(b) Reports by the Secretary.--Not later than 90 days after
the date of enactment of this Act, and every 90 days
thereafter until each of the recommendations referred to in
subsection (a) has been implemented, the Secretary shall
transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committees on
Transportation and Infrastructure and Energy and Commerce of
the House of Representatives a report on the specific actions
taken to implement such recommendations.
(c) Reports by the Inspector General.--The Inspector
General shall periodically transmit to the committees
referred to in subsection (b) a report assessing the
Secretary's progress in implementing the recommendations
referred to in subsection (a) and identifying options for the
Secretary to consider in accelerating recommendation
implementation.
SEC. 19. NTSB SAFETY RECOMMENDATIONS.
(a) In General.--The Secretary of Transportation, the
Administrator of Research and Special Program Administration,
and the Director of the Office of Pipeline Safety shall fully
comply with section 1135 of title 49, United States Code, to
ensure timely responsiveness to National Transportation
Safety Board recommendations about pipeline safety.
(b) Public Availability.--The Secretary, Administrator, or
Director, respectively, shall make a copy of each
recommendation on pipeline safety and response, as described
in subsections (a) and (b) of section 1135, title 49, United
States Code.
(c) Reports to Congress.--The Secretary, Administrator, or
Director, respectively, shall submit to Congress by January 1
of each year a report containing each recommendation on
pipeline safety made by the Board during the prior year and a
copy of the response to each such recommendation.
SEC. 20. MISCELLANEOUS AMENDMENTS.
(a) General Authority and Purpose.--
(1) In general.--Section 60102(a) is amended--
(A) by redesignating paragraph (2) as paragraph (3);
(B) by striking ``(a)(1)'' and all that follows through
``The Secretary of Transportation'' and inserting the
following:
``(a) Purpose and Minimum Safety Standards.--
``(1) Purpose.--The purpose of this chapter is to provide
adequate protection against risks to life and property posed
by pipeline transportation and pipeline facilities by
improving the regulatory and enforcement authority of the
Secretary of Transportation.
``(2) Minimum safety standards.--The Secretary'';
(C) by moving the remainder of the text of paragraph (2)
(as so redesignated), including subparagraphs (A) and (B) but
excluding subparagraph (C), 2 ems to the right; and
(D) in paragraph (3) (as so redesignated) by inserting
``Qualifications of pipeline operators.--'' before ``The
qualifications''.
(2) Conforming amendments.--Chapter 601 is amended--
(A) by striking the heading for section 60102 and inserting
the following:
``Sec. 60102. Purpose and general authority''; and
(B) in the analysis for such chapter by striking the item
relating to section 60102 and inserting the following:
``60102. Purpose and general authority.''.
(b) Conflicts of Interest.--Section 60115(b)(4) is amended
by adding at the end the following:
``(D) None of the individuals selected for a committee
under paragraph (3)(C) may have a significant financial
interest in the pipeline, petroleum, or gas industry.''.
SEC. 21. TECHNICAL AMENDMENTS.
Chapter 601 is amended--
(1) in section 60110(b) by striking ``circumstances'' and
all that follows through ``operator'' and inserting the
following: ``circumstances, if any, under which an
operator'';
(2) in section 60114 by redesignating subsection (d) as
subsection (c);
(3) in section 60122(a)(1) by striking ``section 60114(c)''
and inserting ``section 60114(b)''; and
(4) in section 60123(a) by striking ``60114(c)'' and
inserting ``60114(b)''.
SEC. 22. AUTHORIZATION OF APPROPRIATIONS.
(a) Gas and Hazardous Liquid.--Section 60125(a) is amended
to read as follows:
``(a) Gas and Hazardous Liquid.--To carry out this chapter
(except for section 60107) related to gas and hazardous
liquid, the following amounts are authorized to be
appropriated to the Department of Transportation:
``(1) $45,800,000 for fiscal year 2003, of which
$31,900,000 is to be derived from user fees for fiscal year
2003 collected under section 60301 of this title.
``(2) $46,800,000 for fiscal year 2004, of which
$35,700,000 is to be derived from user fees for fiscal year
2004 collected under section 60301 of this title.
``(3) $47,100,000 for fiscal year 2005, of which
$41,100,000 is to be derived from user fees for fiscal year
2005 collected under section 60301 of this title.
``(4) $50,000,000 for fiscal year 2006, of which
$45,000,000 is to be derived from user fees for fiscal year
2006 collected under section 60301 of this title.''.
(b) State Grants.--Section 60125 is amended--
(1) by striking subsections (b), (d), and (f) and
redesignating subsection (c) as subsection (b); and
(2) in subsection (b)(1) (as so redesignated) by striking
subparagraphs (A) through (H) and inserting the following:
``(A) $19,800,000 for fiscal year 2003, of which
$14,800,000 is to be derived from user fees for fiscal year
2003 collected under section 60301 of this title.
``(B) $21,700,000 for fiscal year 2004, of which
$16,700,000 is to be derived from user fees for fiscal year
2004 collected under section 60301 of this title.
``(C) $24,600,000 for fiscal year 2005, of which
$19,600,000 is to be derived from user fees for fiscal year
2005 collected under section 60301 of this title.
``(D) $26,500,000 for fiscal year 2006, of which
$21,500,000 is to be derived from user fees for fiscal year
2006 collected under section 60301 of this title.''.
(c) Oil Spills; Emergency Response Grants.--Section 60125
is amended by inserting after subsection (b) (as redesignated
by subsection (b)(1) of this section) the following:
``(c) Oil Spill Liability Trust Fund.--Of the amounts
available in the Oil Spill Liability Trust Fund, $8,000,000
shall be transferred to the Secretary of Transportation, as
provided in appropriation Acts, to carry out programs
authorized in this chapter for each of fiscal years 2003
through 2006.
``(d) Emergency Response Grants.--
``(1) In general.--The Secretary may establish a program
for making grants to State, county, and local governments in
high consequence areas, as defined by the Secretary, for
emergency response management, training, and technical
assistance.
``(2) Authorization of appropriations.--There is authorized
to be appropriated $6,000,000 for each of fiscal years 2003
through 2006 to carry out this subsection.''.
(d) Conforming Amendment.--Section 60125(e) is amended by
striking ``or (b) of this section''.
SEC. 23. INSPECTIONS BY DIRECT ASSESSMENT.
Section 60102, as amended by this Act, is further amended
by adding at the end the following:
``(m) Inspections by Direct Assessment.--Not later than 1
year after the date of the enactment of this subsection, the
Secretary shall issue regulations prescribing standards for
inspection of a pipeline facility by direct assessment.''.
SEC. 24. STATE PIPELINE SAFETY ADVISORY COMMITTEES.
Within 90 days after receiving recommendations for
improvements to pipeline safety from an advisory committee
appointed by the Governor of any State, the Secretary of
Transportation shall respond in writing to the committee
setting forth what action, if any, the Secretary will take on
those recommendations and the Secretary's reasons for acting
or not acting upon any of the recommendations.
SEC. 25. PIPELINE BRIDGE RISK STUDY.
(a) In General.--The Secretary of Transportation shall
conduct a study to determine whether cable-suspension
pipeline bridges pose structural or other risks warranting
particularized attention in connection with pipeline
operators risk assessment programs and whether particularized
inspection standards need to be developed by the Department
of Transportation to recognize the peculiar risks posed by
such bridges.
(b) Public Participation and Comments.--In conducting the
study, the Secretary shall provide, to the maximum extent
practicable, for public participation and comment and shall
solicit views and comments from the public and interested
persons, including participants in the pipeline industry with
knowledge and experience in inspection of pipeline
facilities.
(c) Completion and Report.--Within 2 years after the date
of enactment of this Act, the Secretary shall complete the
study and transmit to Congress a report detailing the results
of the study.
(d) Funding.--The Secretary may carry out this section
using only amounts that are specifically appropriated to
carry out this section.
SEC. 26. STUDY AND REPORT ON NATURAL GAS PIPELINE AND STORAGE
FACILITIES IN NEW ENGLAND.
(a) Study.--The Federal Energy Regulatory Commission, in
consultation with the Department of Energy, shall conduct a
study on the natural gas pipeline transmission network in New
England and natural gas storage facilities associated with
that network.
(b) Consideration.--In carrying out the study, the
Commission shall consider the ability of natural gas pipeline
and storage facilities in New England to meet current and
projected demand by gas-fired power generation plants and
other consumers.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Federal Energy Regulatory
Commission shall prepare and submit to the Committee on
Energy and Natural Resources of the Senate and the Committee
on Energy and Commerce of the House of Representatives a
report containing the results of the study conducted under
subsection (a), including recommendations for addressing
potential natural gas transmission and storage capacity
problems in New England.
[[Page H8991]]
Attest:
Secretary.
Mr. DINGELL. Mr. Speaker, I rise in strong support of the Senate
amendment to H.R. 3609. The Senate passed this bill yesterday by
unanimous consent. The text is based upon bipartisan, bicameral
agreements reached during the conference consideration of H.R. 4, the
energy bill.
I am truly pleased to be here to mark a very important event: for the
first time in a decade, we are on the verge of enacting pipeline safety
legislation that would actually enhance the safety of our Nation's
pipelines. I want to commend Chairman Tauzin, Chairman Young, Ranking
Member Oberstar, and our Senate colleagues on both sides of the aisle
for making this possible.
There is a mounting body of evidence that our system of pipeline
safety regulation is wholly inadequate. Unfortunately, until now,
Congress has failed to move on any meaningful reforms. During the last
Congress, the House considered legislation that was more about public
relations than public safety. Because that legislation did little more
than restate existing law and provide cover for maintaining the deadly
status quo, Mr. Oberstar and I--along with many of our colleagues--
successfully opposed enactment of that legislation.
The legislation we are considering today is largely based on the
legislation that passed the House overwhelmingly in July, while
incorporating many of the provisions of previously passed Senate
legislation. It is the result of a good faith, sincere effort to do
what is doable for the sake of safety, rather than hold out for
everything that every stakeholder ever wanted. I know it is not a
perfect product, but it is a distinct improvement over the Senate
legislation and current law. Let me just detail a few of the
improvements.
H.R. 3609, as amended, requires that a pipeline facility be inspected
within ten years or less and re-inspected at least once every seven
years. Facilities may be inspected more frequently and the Secretary is
required to determine under what circumstances more frequent
inspections are required. I certainly hope Secretary Mineta requires
more frequent inspections, but currently, there are no time limits or
rules for inspection of gas pipelines in high consequence areas, so
this is a major improvement over currently law.
The bill before us also adopts the more stringent House inspection
provisions, spelling out very specifically the minimum requirements of
an operators integrity management plan. It requires the Secretary of
Transportation to establish specific criteria for judging the adequacy
of an operator's plan and establishes a specific process for the
Secretary to review and assess the adequacy of an operator's inspection
plans and amendments to the plan, requiring the Secretary to order
revisions to inadequate plans. Also, while it allows some inspections
to be conducted by direct assessment, the legislation requires the
Secretary to define ``direct assessment'' by rules rather than leave
the term undefined.
Because the Department of Transportation (DOT) has a terrible history
of compliance with Congressional directives, the language provides a
``fail-safe'' to ensure pipelines get inspected by placing the
obligation to conduct inspections directly on the pipeline operator if
the Secretary fails to undertake a rulemaking.
The bill before us also includes the language on operator
qualifications based upon the House-passed legislation. As with the
inspection language, the House provision on operator qualifications is
much more stringent and detailed. It requires the development of
standards and criteria, the verification of operators' plans, and it
contains a mechanism to ensure that operators develop and implement
qualification plans even if the DOT never completes a rulemaking
procedure. And, it begins to move toward licensing of pipeline
operators by establishing a pilot program on licensing of pipeline
computer control room operators.
This bill authorizes far more money for pipeline safety than the
original Senate language. It authorizes new technical assistance grants
to communities and a new research program. Most importantly, this
legislation contains the House language assuring that most of the money
authorized by this legislation will be spent on the regulation of
pipelines, not on less important matters.
Other improvements to current law include new authority to issue
Safety Orders, allowing the Secretary to take quick, meaningful action
when there is a potentially unsafe condition; the establishment of a
toll-free national three-digit ``call before you dig'' or ``one-call''
phone system; increased emphasis on environmental protection; and more
enforcement tools to make it easier for both DOT and the Department of
Justice to go after bad actors.
This is a good piece of legislation and I again want to express my
appreciation to those in the environmental community and organized
labor who have worked with me over the years on these matters. They,
along with the industry stakeholders who have chosen to play a
constructive role net his process, deserve to be recognized for helping
us make it possible to go forward with the support of every Member of
our Committee and hopefully today with support of the entire House of
Representatives.
Mr. Speaker, I urge passage of the bill.
Mr. OBERSTAR. Mr. Speaker, I rise in support of the Senate amendment
to H.R. 3609, the Pipeline Safety and Improvement Act of 2002. This
evening, the House finally will be able to enact pipeline safety
legislation that is worthy of the name. It is has been a long and
difficult journey to reach this point. Energy and Commerce Committee
Ranking Member Dingell and I introduced strong pipeline safety
legislation in this and the last Congress, while at the same time we
fought to forestall the passage of much weaker legislation. Although it
has required two more years of difficult negotiations on pipeline
safety, I am pleased to say that nearly all the areas that Congressman
Dingell and I wanted to address are covered in the bill.
Is this bill perfect? No, but it has come a long way from the version
that was introduced last December. My primary criticism of this
compromise bill is that it does not go far enough in giving citizens
information about the status of pipelines serving their communities--
the so-called community right-to-know issue. However, in the current
security-focused environment, we were unable to arrive at language that
a majority of our colleagues could agree upon. Notwithstanding that
limitation, this is a very good bill deserving of your support. Let me
share with you some highlights of the Pipeline Safety Improvement Act
of 2002.
First and foremost, this bill establishes specific timeframes for
inspecting all natural gas transmission pipelines serving high
consequence areas (e.g., high population areas). These pipelines must
all be inspected within ten years of enactment of this legislation.
Moreover, at least 50 percent of these pipelines must be inspected
within the first five years. Pipeline operators must prioritize their
facilities based on risk factors and ensure that assessments with the
highest risks are given priority and inspections are completed within
this first five-year period. Subsequently, these pipelines must be re-
inspected no less frequently than ever seven years. At first, the
natural gas pipeline industry strenuously opposed any periodic
inspection requirements. When it became apparent that they couldn't win
that position, they suggested inspection timeframes of up to 20 years
and the Office of Pipeline Safety (OPS) appeared to agree with them.
Fortunately, the interests of safety prevailed over the interests of
the bottom line.
The bill also includes a requirement that pipeline operators provide
training to ensure that individuals have the necessary knowledge and
skills to perform their tasks in a safe manner. The bill specifically
excludes the mere observation of an employee's on-the-job performance
to decide whether or not he or she is qualified to perform the task to
which he is assigned. The bill also requires OPS to establish a pilot
program to certify pipeline employees who operate computer systems for
controlling pipelines. This pilot program will help us determine
whether we should require pipeline operators to certify all pipeline
employees in safety-sensitive positions.
In addition, the bill raises the civil penalties for each violation
from $25,000 to $100,000, and the maximum civil penalty from $500,000
to $1 million. These penalties are significantly higher than the
penalties included in H.R. 3609, as reported. The bill also contains
meaningful protections for employees who provide information about
violations of Federal law governing pipeline safety or refuse to
participate in any illegal practices relating to pipeline safety.
The bill allows for the coordination of environmental reviews for
pipeline repair projects. It limits the instances where discretionary
administrative environmental reviews might be minimized or eliminated
to repair projects that would result in no more than minimal adverse
effects on the environment and requires that an Interagency Committee
of Federal agencies with responsibilities relating to pipeline repair
projects unanimously agree that the environmental impact would be
minimal.
This bill contains a number of other provisions that also should
greatly advance the goal of improving pipeline safety. However, I must
offer a word of caution. Simply because we enact a good, strong
pipeline safety bill is no guarantee that its provisions will be
vigorously carried out. In 1988 and 1992, Congress passed pipeline
safety laws that required significant pipeline safety improvements,
only to watch OPS basically ignore the law. Likewise, the Office of
Pipeline Safety has been unresponsive, or slow to act, on safety
recommendations made by the Department of Transportation's Office of
Inspector General, the General Accounting Office, and the National
Transportation Safety Board. The current leadership at OPS and at its
parent agency, the Research and Special Programs Administration, has
promised to do a better job. Nevertheless, the Administration needs to
[[Page H8992]]
know that we in the Congress are watching to make certain that the
provisions of this pipeline safety act are being carried out
faithfully.
Two years ago, I helped lead the effort in the House to defeat a
Senate-passed, pipeline safety bill. That bill was too weak, especially
in light of the then-recent tragedies in Bellingham, Washington and
Carlsbad, New Mexico. We defeated that bill, believing that no bill was
better than a weak one. That was the right thing to do. Now, we finally
have a strong bill--one that will significantly improve pipeline safety
and protect those who live near them or work on them. It is sad that it
took so long to do the right thing for the American people.
I urge my colleagues to support the Senate amendment to H.R. 3609,
the Pipeline Safety Improvement Act of 2002.
Mr. YOUNG of Alaska. Mr. Speaker, I am pleased to submit the
accompanying Joint Explanatory Statement of the Pipeline Safety
Improvement Act of 2002.
To expedite enactment of the significant pipeline safety reforms
included in this bill, the leadership of the House Transportation and
Infrastructure and Energy and Commerce Committees has worked with the
Senate Commerce, Science, and Transportation Committee in developing
the bill. This Joint Explanatory Statement therefore represents the
views of the Chairmen and Ranking Members of the Transportation and
Infrastructure Committee and the Energy and Commerce Committee, along
with the Chairman and Ranking Member of the Senate Commerce Committee.
This Joint Explanatory Statement will provide legislative history for
interpreting this important pipeline safety legislation.
JOINT EXPLANATORY STATEMENT OF THE HONORABLE DON YOUNG, THE HONORABLE
JAMES L. OBERSTAR, THE HONORABLE W.J. (BILLY) TAUZIN, THE HONORABLE
JOHN D. DINGELL AND THE HONORABLE ERNEST HOLLINGS THE HONORABLE JOHN
MCCAIN
November 14, 2002
SECTION-BY-SECTION ANALYSIS OF H.R. 3609 PIPELINE SAFETY IMPROVEMENT
ACT OF 2002
Section 1. Short title; amendment of title 49, United States
Code.
This section designates the act as the ``Pipeline Safety
Improvement Act of 2002.''
Section 2. One-call notification programs.
This section requires that state one-call notification
programs provide for the participation of government
operators and contact excavators. Section 2 also requires
that state one-call notification programs document enumerated
items set forth in the statute. Additionally, the requirement
that the Secretary of Transportation include certain
information in reports submitted under section 60124 of Title
49 is made permanent. Authorizations for appropriations for
grants to states for fiscal years 2003 through 2006 are
provided at $1,000,000 per year, and grants for
administration in section 6107(b) are updated for fiscal
years 2003 through 2006. This section also amends section
6105 of Title 49 by requiring the Secretary of Transportation
to encourage the states, operators of one-cell notification
programs, operators of underground facilities, and excavators
(including government and contract excavators) to use the
practices set forth in the best practices report entitled
``Common Ground,'' as periodically updated, and requires the
Secretary of Transportation to provide technical assistance
to a non-profit organization specifically established for the
purpose of reducing construction-related damage to
underground facilities. Authorizations for appropriations for
fiscal years 2003 through 2006 are provided at $500,000 per
year, but would not be derived from user fees collected under
section 60301 of title 49.
Section 3. One-call notification of pipeline operators.
This section provides for the enforcement of one-call
notification programs by a state authority if the state's
program meets the requirements set forth in the statute. The
application of the term ``person'' who intends to engage in
an activity necessitating the use of the one-call system is
expanded to include government employees or contractors.
This section amends section 60123(d) of Title 49 by
rearranging the phrase ``knowingly and willfully'' to address
the problem raised when a court interpreted existing law to
require a knowing and willful standard to, not only engaging
in an excavation activity, but also to subsequently damaging
a pipeline facility. The consequence of the court's
interpretation makes prosecutions more difficult by requiring
the government to show the defendant knew subsequent damages
would result from excavation activity and that the
defendant's conduct was willful. This section of the bill
corrects the court's interpretation by now requiring that the
``knowingly and willfully'' standard apply only to engaging
in an excavation activity.
This section also provides that penalties under the
criminal penalties section can be reduced if the violator
promptly reports a violation.
Section 4. State oversight role.
This section amends section 60106 of Title 49 to allow the
Secretary of Transportation to make an agreement with a state
authority authorizing the state authority to participate in
the oversight of interestate pipeline transportation
including incident investigation, new construction, and
other inspection and investigatory duties. However the
Secretary shall not delegate the enforcement of safety
standards for interstate pipeline facilities to a state
authority. This section further provides that the
Secretary may terminate agreements with the State
authorities if a gap results in the State authority's
oversight responsibilities of intrastate pipeline
transportation, the State authority fails to meet
requirements set forth in this section, or continued
participation in the oversight of interstate pipeline
transportation would not promote pipeline safety. Existing
state agreements shall continue until a new agreement
between the state and the DOT is executed or December 31,
2003, whichever is sooner.
Section 5. Public education programs.
Section 5 amends section 60116 of Title 49 to include
hazardous liquid pipeline facilities in this section
requiring a continuing program to educate the public on the
use of one-call notification systems, the possible hazards
associated with unintended releases, and how to tell if an
unintended release occurred, what steps should be taken for
public safety in the event of a pipeline release, and how to
report such an event. This section also requires owners and
operators to review existing public education programs for
effectiveness and to modify their programs as necessary. In
addition, the section allows the Secretary to issue standards
prescribing the elements of public education programs and
develop materials for use in such programs.
Previous versions of Senate-passed pipeline safety
legislation also included a provision calling for the
coordination of emergency preparedness between operators of
pipeline facilities and state and local officials, as well as
to provide for public access to certain safety information.
Agreement was not reached on how safety information could be
accessed by the public in a manner that would protect
security-sensitive information from distribution. The
managers agreed that this issue would be better dealt with in
the context of the pending homeland security legislation.
Section 6. Protection of employees providing pipeline safety
information.
This section adds provisions for the protection of
employees who are discharged or otherwise discriminated
against with respect to compensation, terms, conditions, or
privileges of employment for (1) providing information to the
Federal government about alleged violations of Federal law
relating to pipeline safety; (2) refusing to participate in
any practice made illegal by Federal law relating to pipeline
safety; or (3) assisting or participating in any proceeding
to carry out the purposes of pipeline safety legislation.
This section establishes the procedural framework in which
complaints are handled by the Secretary of Labor and the
remedies available to the prevailing party.
This section contains a provision that essentially says if
a preliminary order provides that an employee must be allowed
to return to work, the filing of any objection by the
employer ``shall not operate to stay any reinstatement remedy
contained in the preliminary order.'' The intention of this
language is to assure that the mere filing of an objection
would not work as an automatic stay, thus precluding an
employee from returning to work pending the outcome of the
matter. However, this language would not preclude an employer
from filing an independent motion for a stay if sufficient
grounds exist for the filing of such a motion.
Section 7. Safety orders.
Section 7 adds a paragraph to section 60117 of Title 49 to
give the Secretary of Transportation authority to order an
operator of a facility to take corrective action if the
Secretary decides that a potential safety-related condition
exists. The office of Pipeline Safety (OPS) requested this
provision so that corrective action could be taken
immediately rather than waiting until a facility is
classified as ``hazardous'' prior to requiring corrective
action.
Section 8. Penalties.
This section modifies the existing penalties provisions set
forth in section 60112 of Title 49 to allow the Secretary of
Transportation to decide if the operation of a pipeline
facility, is ``or would be'' hazardous to life, property, or
the environment. The purpose of the modification is to give
the Secretary authority to take action prior to the facility,
the construction of the facility, or any component of the
facility actually becoming hazardous, thereby establishing a
framework of preventative actions, rather than actions only
in response to an imminent hazard.
In subsection (a)(1) of section 60122, the amounts of the
penalties have been increased. The per day, per incident,
amount has been increased from $25,000 to $100,000. The
maximum civil penalty for a related series of violations has
been increased from $500,000 to $1,000,000. The section of
the bill also provides that, in determining the amount of a
civil penalty, the Secretary of Transportation shall consider
as an additional consideration in section 60122(b) of Title
49, the adverse impact on the environment. The Secretary of
Transportation may
[[Page H8993]]
consider the economic benefit gained from the violation
without reduction because of subsequent damages.
This section also modifies the enforcement section of the
statute (section 60120(a)(1) of Title 49) by specifically
providing that the court may award appropriate relief,
including a temporary or permanent injunction, punitive
damages, and the assessment of civil penalties. The current
statutory language specifying that the Attorney General
may proceed only at the request of the Secretary of
Transportation remains in effect.
Section 8 also requires that the Comptroller General
conduct a study of the actions, policies, and procedures of
the Secretary of Transportation for assessing and collecting
fines and penalties.
Section 9. Pipeline safety information grants to communities.
Section 9 requires the Secretary of Transportation to make
grants for technical assistance to local communities and
groups of individuals (not including for-profit entities)
relating to the safety of pipelines in local communities. The
purpose of this provision is to provide grants to communities
for technical assistance such as engineering or scientific
analysis of pipeline safety issues. Applicants must compete
for the grants in a procedure established by the Secretary of
Transportation, who shall also establish the criteria for the
recipients. Additionally, the Secretary must establish
procedures to ensure that the funds have been properly
accounted for and spent in a manner consistent with the
purpose of the grants. Any one-grant recipient may not
receive more than $50,000. The grant funds cannot be used for
lobbying or in direct support of litigation. This section
authorizes the appropriation of $1,000,000 for each of the
fiscal years 2003 through 2006.
Section 10. Operator assistance in investigations.
This section requires the operator of a pipeline facility
to make available information and records to the Secretary of
Transportation or the National Safety Transportation Board
(NTSB) in the event of an accident, subject to constitutional
protections for operators and employees. Actions taken by an
operator pursuant to this section shall be in accordance with
the terms and conditions of any applicable collective
bargaining agreement.
Section 11. Population encroachment and rights-of-way.
This section requires the Secretary of Transportation,
along with the Federal Energy Regulatory Commission (FERC)
and other federal agencies and state and local governments,
to study land use practices and zoning ordinances, as well as
the preservation of environmental resources, with regard to
pipeline rights-of-way. Based upon the purposes set forth in
this section, a report is to be written that identifies
successful practices, ordinances, and laws addressing
population encroachment on pipeline rights-of-way, being
mindful of protecting the public safety, pipeline workers,
and the environment. The report must be completed within one
year from the date of enactment and provided to Congress,
appropriate federal agencies, and the States for further
distribution to the appropriate local authorities.
Section 12. Pipeline integrity, safety, and reliability
research and development.
This section requires the heads of the participating
agencies to carry out a program of research, development,
demonstration, and standardization to ensure the integrity of
pipelines. The Secretary of Energy, Secretary of
Transportation, and the Director of the National Institute of
Standards and Technology (NIST) each have defined roles. The
Secretary of Transportation, in coordination with the
Secretary of Energy and the Director of the National
Institute of Standards and Technology, shall prepare and
submit to Congress a 5-year plan to guide the activities
under this section. The plan shall also be submitted to the
Technical Pipeline Safety Standards Committee and the
Technical Hazardous Liquid Pipeline Safety Standards
Committee for review. The section authorizes appropriations
for the fiscal years 2003 through 2006 in the following
amounts: Secretary of Energy: $10,000,000; the Secretary of
Transportation: $10,000,000; and the National Institute of
Standards and Technology: $5,000,000. Any sums authorized
pursuant to this section shall not be derived from user fees.
In addition $3,000,000 from the Oil Spill Liability Trust
Fund shall be transferred to the Secretary of Transportation,
as provided in appropriations Acts, to carry out programs for
detection, prevention, and mitigation of oil spills for each
of the fiscal years 2003 through 2006.
Even though the Secretary of Transportation does not
regulate gathering lines, the participating agencies are
encouraged to include such lines in their research,
development, demonstration, and standardization efforts on
the integrity of gathering lines.
Section 13. Pipeline qualification programs.
This section requires the Secretary of Transportation to
require operators of pipeline facilities to develop
qualification programs for their personnel who perform
covered tasks (as defined in the Code of Federal
Regulations). This section also requires the Secretary to
have in place standards and criteria for such qualification
programs, including a method for examining or testing the
qualifications of individuals who perform covered tasks. Such
method may include written examination, oral examination, on-
the-job training, simulations, observation during on-the-job
performance, and other forms of assessment. The method may
not be limited to observation of on-the-job performance,
except with respect to tasks where the Secretary has
determined specifically that such observation is the best
method of examining or testing qualifications. Further, the
Secretary must ensure that the results of any such on-the-job
performance observations are documented in writing. The
Secretary may waive or modify requirements if not
inconsistent with pipeline safety. The Secretary is required
to verify each operator's qualification program, including
modifications to previously verified programs. In the event
the Secretary fails to establish standards and criteria as
set forth in this section, pipeline facility operators are
required to develop and implement qualification programs
based on the requirements of this section. The Secretary
is required to report to Congress within 5 years on the
status and results of personnel qualification regulations.
A pilot program is established for the certification of
individuals who operate computer-based systems for
controlling the operations of pipelines. The pilot program
seeks the participation of 3 pipeline facilities.
Section 14. Risk analysis and integrity management programs
for gas pipelines.
This section requires operators of pipeline facilities
subject to section 60109 of Title 49 to adopt and implement a
written integrity management program to reduce risks to each
facility. Within 12 months of the enactment of the bill, this
section requires the Secretary of Transportation to prescribe
standards to direct each operator's conduct of a risk
analysis and adoption and implementation of an integrity
management program, which must occur within 24 months from
the enactment of the section. Minimum requirements are set
forth in this section for integrity management programs and
for the rule regulating the same, which include a baseline
integrity assessment of each of an operator's facilities
which must be completed within 10 years after the enactment
of the section (at least 50 percent of such facilities shall
be assessed no later than 5 years after the date of enactment
of this section), and a reassessment of each facility at a
minimum of once every 7 years, with prioritization being
based on all relevant risk factors, including any previously
discovered defects or anomalies and any history of leaks,
repairs, or failures.
The Secretary of Transportation is required to issue a rule
on integrity management programs, and each operator of a
pipeline facility subject to section 60109 of Title 49 is
required to adopt and implement an integrity management
program, even if the Secretary does not issue a rule. This
section does not apply to natural gas distribution lines
because section 60109 of Title 49 does not, nor was it
intended to, apply to natural gas distribution lines.
Section 14 authorizes the Secretary of Transportation to
grant waivers and modifications pursuant to section 60118(c)
of Title 49 for any requirement for reassessment of a
facility for reasons that may include the need to maintain
local product supply or the lack of internal inspection
devices. The waivers or modifications shall not be
inconsistent with pipelines safety.
This section also requires that the Comptroller General
conduct a study to evaluate the 7-year reassessment interval
required by this section. The study is to be completed and
transmitted to Congress no later than 4 years from the date
of enactment.
In this section, each operator of a gas pipeline facility
is required to conduct a risk analysis for facilities located
in high consequence areas and to adopt and implement an
integrity management program for each such facility to reduce
associated risks. This section requires each operator to
prioritize facilities for integrity assessment based on all
risk factors, including any history of leaks, repairs, or
failures, and directs the operator to give priority to
facilities with the highest risks.
The Department of Transportation's Research and Special
Programs Administration (RSPA) issued a final rule defining
``high consequence areas'' on August 6, 2002. The managers
strongly support RSPA's regulation defining high consequence
areas, although recognize that the definition could be
subject to alteration by future regulatory action by RSPA.
Pipeline safety regulations have long required gas
operators to survey and patrol along their pipeline rights-
of-way to classify areas of population. The new definition of
high consequence areas builds on the existing classification
of areas where the potential consequences of a gas pipeline
accident may be significant or may do considerable harm to
people and their property, and includes current class 3 and 4
locations, facilities with persons who are mobility impaired,
confined, or hard to evacuate, and places where people gather
for recreational and other purposes.
In the July 2002 Technical Pipeline Safety Standards
Committee meeting to consider the proposed definition, RSPA
made clear its intent to include in its definition known
areas where people gather, such as the Pecos River pipeline
crossing near Carlsbad, New Mexico, which was commonly used
by campers and fishermen and was the location of a pipeline
rupture in August 2000 that resulted in 12 fatalities. The
managers support is expressed for this new definition of high
consequence areas and expect RSPA to further
[[Page H8994]]
clarify the application of the definition in the substantive
rule to be issued on integrity management programs.
Section 15. National Pipeline Mapping System.
Section 15 requires operators of pipeline facilities,
except distribution lines and gathering lines, to provide to
the Secretary of Transportation geospatial data appropriate
for use in the National Mapping System, the name and address
of the person with primary operational control, and a means
for a member for the public to contact the operator for
additional information about the facilities. There is a
requirement to update the information as necessary.
Section 16. Coordination of environmental reviews.
Section 16 requires the President to establish an
interagency committee for the purpose of developing and
ensuring the implementation of a coordinated environmental
review and permitting process in order for pipeline operators
to complete all activities necessary to carry out pipeline
repairs within any time periods specified by rule by the
Secretary of Transportation.
The chairman of the Council on Environmental Quality shall
chair the Interagency Committee, which shall consist of
representatives of Federal agencies with responsibilities
relating to pipeline repair projects. The Interagency
Committee shall evaluate Federal permitting requirements and
shall examine the access, excavation, and restoration
practices of the pipeline industry for the purpose of
developing a compendium of best practices used by the
industry to access, excavate, and restore the site of a
pipeline repair. Based upon the evaluation conducted, the
members of the Interagency Committee shall enter into, by
unanimous consent, a memorandum of understanding to provide
for the coordinated and expedited pipeline repair permit
review process so that pipeline operators may commence and
complete pipeline repairs within any time periods imposed on
the repair projects by rules promulgated by the Secretary of
Transportation. Each agency represented on the Interagency
Committee is required to revise its regulations to implement
the provisions of the memorandum of understanding.
This section also provides for the implementation of
alternative mitigation measures to be used by operators of
pipeline facilities until all applicable permits have been
granted. To the extent necessary, the Secretary of
Transportation is required to revise the regulations of the
Department to accommodate such implementation. However, such
revisions shall not allow an operator of a pipeline facility
to implement alternate mitigation measures unless to do so
would be consistent with the protection of human health,
public safety, and the environment; the operator has applied
for and is diligently and in good faith pursuing all required
Federal, state, and local permits necessary to carry out the
repair project; and is compatible with pipeline safety.
The Secretary of Transportation is required to designate an
ombudsman to assist in expediting pipeline repairs and
resolving disagreements between Federal, state, and local
permitting agencies and the operator of a pipeline facility.
The actions of the ombudsman must be consistent with the
protection of human health, public safety, and the
environment.
The Secretary of Transportation is required to encourage
states and local governments to consolidate their respective
permitting processes for pipeline repair projects that are
subject to any time periods for repairs specified by rule by
the Secretary of Transportation.
Section 17. Nationwide toll-free number system.
Section 17 requires the Secretary of Transportation to work
in conjunction with the Federal Communications Commission
(FCC), facility operators, excavators, and one-call
notification system operators for the establishment of a
nationwide toll-free 3-digit telephone number system to be
used by state one-call notification systems.
Section 18. Implementation of Inspector General
recommendations.
Section 18 requires the Secretary of Transportation to
respond to each of the recommendations of the Department of
Transportation Inspector General contained in RT-2000-069
every 90 days and to submit the responses to the appropriate
committees of Congress.
Section 19. NTSB safety recommendations.
Section 19 requires RSPA and OPS to respond to
recommendations received from the NTSB within 90 days from
receipt of such recommendations. Such responses shall state
the intentions of the OPS with respect to the recommendations
and shall state the timetable for completing the procedures
and reasons for refusals to do so. The responses shall be
made available to the public. The OPS is required to submit
an annual report describing each recommendation received and
the OPS response to each recommendation for the previous
year.
Section 20. Miscellaneous amendments.
Section 20 amends section 60102(a) of Title 49 by adding
language expressing that the purpose of the chapter is to
provide adequate protection against risks to life and
property posed by pipeline transportation pipeline facilities
by improving the regulatory and enforcement authority of the
Secretary of Transportation.
This section also modifies the qualifications of the
individuals selected to serve on the Technical Safety
Standards Committees pursuant to section 60115 of Title 49 so
that none of the individuals selected for committee
membership from the general public ``may have a significant
financial interest in the pipeline, petroleum, or gas
industry.'' The intent of this provision is to prevent
industry employees and individuals with a sizable stake in
the pipeline industry from serving as representatives from
the general public, not prevent service from individuals who
have pipeline, petroleum, or gas industry stock interests in
their retirement plans.
Section 21. Technical amendments.
Section 21 makes technical amendments to correct previous
drafting errors in the existing legislation.
Section 22. Authorization of appropriations.
Section 22 authorizes appropriations for the Department of
Transportation and state grants for safety programs for the
fiscal years 2003 through 2006.
Section 23. Inspections by direct assessment.
Section 23 requires the Secretary of Transportation to
issue regulations prescribing standards for inspections of a
pipeline facility by direct assessment.
Section 24. State pipeline safety advisory committees.
Section 24 requires the Secretary of Transportation to
respond within 90 days after receiving recommendations from
advisory committees appointed by the Governor of any state.
Section 25. Pipeline bridge risk study.
Section 25 requires the Secretary of Transportation to
conduct a study to determine whether cable-suspension
pipeline bridges pose structural or other risks. The
Secretary may only use funds specifically appropriated to
carry this section.
Section 26. Study and Report on Natural Gas Pipeline and
Storage Facilities in New England.
Section 26 requires the Federal Energy Regulatory
Commission, in consultation with the Department of Energy, to
conduct a study on the natural gas pipeline transmission
network in New England and natural gas storage facilities
associated with that network and report back to the relevant
House and Senate Committees within a year of the date of
enactment.
{time} 0250
Taken From the Speaker's Table and Concurred in Senate Amendment
H.R. 5469, to amend title 17, United States Code, with respect to the
statutory license for webcasting, and for other purposes.
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Webcaster Settlement
Act of 2002''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Some small webcasters who did not participate in the
copyright arbitration royalty panel proceeding leading to the
July 8, 2002 order of the Librarian of Congress establishing
rates and terms for certain digital performances and
ephemeral reproductions of sound recordings, as provided in
part 261 of the Code of Federal Regulations (published in the
Federal Register on July 8, 2002) (referred to in this
section as ``small webcasters''), have expressed reservations
about the fee structure set forth in such order, and have
expressed their desire for a fee based on a percentage of
revenue.
(2) Congress has strongly encouraged representatives of
copyright owners of sound recordings and representatives of
the small webcasters to engage in negotiations to arrive at
an agreement that would include a fee based on a percentage
of revenue.
(3) The representatives have arrived at an agreement that
they can accept in the extraordinary and unique circumstances
here presented, specifically as to the small webcasters,
their belief in their inability to pay the fees due pursuant
to the July 8 order, and as to the copyright owners of sound
recordings and performers, the strong encouragement of
Congress to reach an accommodation with the small webcasters
on an expedited basis.
(4) The representatives have indicated that they do not
believe the agreement provides for or in any way approximates
fair or reasonable royalty rates and terms, or rates and
terms that would have been negotiated in the marketplace
between a willing buyer and a willing seller.
(5) Congress has made no determination as to whether the
agreement provides for or in any way approximates fair or
reasonable fees and terms, or rates and terms that would have
been negotiated in the marketplace between a willing buyer
and a willing seller.
(6) Congress likewise has made no determination as to
whether the July 8 order is reasonable or arbitrary, and
nothing in this Act shall be taken into account by the United
States Court of Appeals for the District of Columbia Circuit
in its review of such order.
(7) It is, nevertheless, in the public interest for the
parties to be able to enter into such an agreement without
fear of liability for deviating from the fees and terms of
the July 8 order, if it is clear that the agreement will not
be admissible as evidence or otherwise taken into account in
any government proceeding involving the setting or adjustment
of the royalties payable to copyright owners of sound
recordings for the public performance or reproduction in
ephemeral phonorecords or copies of such works, the
determination of terms or conditions related thereto,
[[Page H8995]]
or the establishment of notice or recordkeeping requirements.
SEC. 3. SUSPENSION OF CERTAIN PAYMENTS.
(a) Noncommercial Webcasters.--
(1) In general.--The payments to be made by noncommercial
webcasters for the digital performance of sound recordings
under section 114 of title 17, United States Code, and the
making of ephemeral phonorecords under section 112 of title
17, United States Code, during the period beginning on
October 28, 1998, and ending on May 31, 2003, which have not
already been paid, shall not be due until June 20, 2003.
(2) Definition.--In this subsection, the term
``noncommercial webcaster'' has the meaning given that term
in section 114(f)(5)(E)(i) of title 17, United States Code,
as added by section 4 of this Act.
(b) Small Commercial Webcasters.--
(1) In general.--The receiving agent may, in a writing
signed by an authorized representative thereof, delay the
obligation of any 1 or more small commercial webcasters to
make payments pursuant to sections 112 and 114 of title 17,
United States Code, for a period determined by such entity to
allow negotiations as permitted in section 4 of this Act,
except that any such period shall end no later than December
15, 2002. The duration and terms of any such delay shall be
as set forth in such writing.
(2) Definitions.--In this subsection--
(A) the term ``webcaster'' has the meaning given that term
in section 114(f)(5)(E)(iii) of title 17, United States Code,
as added by section 4 of this Act; and
(B) the term ``receiving agent'' shall have the meaning
given that term in section 261.2 of title 37, Code of Federal
Regulations, as published in the Federal Register on July 8,
2002.
SEC. 4. AUTHORIZATION FOR SETTLEMENTS.
Section 114(f) of title 17, United States Code, is amended
by adding after paragraph (4) the following:
``(5)(A) Notwithstanding section 112(e) and the other
provisions of this subsection, the receiving agent may enter
into agreements for the reproduction and performance of sound
recordings under section 112(e) and this section by any 1 or
more small commercial webcasters or noncommercial webcasters
during the period beginning on October 28, 1998, and ending
on December 31, 2004, that, once published in the Federal
Register pursuant to subparagraph (B), shall be binding on
all copyright owners of sound recordings and other persons
entitled to payment under this section, in lieu of any
determination by a copyright arbitration royalty panel or
decision by the Librarian of Congress. Any such agreement for
small commercial webcasters shall include provisions for
payment of royalties on the basis of a percentage of revenue
or expenses, or both, and include a minimum fee. Any such
agreement may include other terms and conditions, including
requirements by which copyright owners may receive notice of
the use of their sound recordings and under which records of
such use shall be kept and made available by small commercial
webcasters or noncommercial webcasters. The receiving agent
shall be under no obligation to negotiate any such agreement.
The receiving agent shall have no obligation to any copyright
owner of sound recordings or any other person entitled to
payment under this section in negotiating any such agreement,
and no liability to any copyright owner of sound recordings
or any other person entitled to payment under this section
for having entered into such agreement.
``(B) The Copyright Office shall cause to be published in
the Federal Register any agreement entered into pursuant to
subparagraph (A). Such publication shall include a statement
containing the substance of subparagraph (C). Such agreements
shall not be included in the Code of Federal Regulations.
Thereafter, the terms of such agreement shall be available,
as an option, to any small commercial webcaster or
noncommercial webcaster meeting the eligibility conditions of
such agreement.
``(C) Neither subparagraph (A) nor any provisions of any
agreement entered into pursuant to subparagraph (A),
including any rate structure, fees, terms, conditions, or
notice and recordkeeping requirements set forth therein,
shall be admissible as evidence or otherwise taken into
account in any administrative, judicial, or other government
proceeding involving the setting or adjustment of the
royalties payable for the public performance or reproduction
in ephemeral phonorecords or copies of sound recordings, the
determination of terms or conditions related thereto, or the
establishment of notice or recordkeeping requirements by the
Librarian of Congress under paragraph (4) or section
112(e)(4). It is the intent of Congress that any royalty
rates, rate structure, definitions, terms, conditions, or
notice and recordkeeping requirements, included in such
agreements shall be considered as a compromise motivated by
the unique business, economic and political circumstances of
small webcasters, copyright owners, and performers rather
than as matters that would have been negotiated in the
marketplace between a willing buyer and a willing seller, or
otherwise meet the objectives set forth in section 801(b).
``(D) Nothing in the Small Webcaster Settlement Act of 2002
or any agreement entered into pursuant to subparagraph (A)
shall be taken into account by the United States Court of
Appeals for the District of Columbia Circuit in its review of
the determination by the Librarian of Congress of July 8,
2002, of rates and terms for the digital performance of sound
recordings and ephemeral recordings, pursuant to sections 112
and 114.
``(E) As used in this paragraph--
``(i) the term `noncommercial webcaster' means a webcaster
that--
``(I) is exempt from taxation under section 501 of the
Internal Revenue Code of 1986 (26 U.S.C. 501);
``(II) has applied in good faith to the Internal Revenue
Service for exemption from taxation under section 501 of the
Internal Revenue Code and has a commercially reasonable
expectation that such exemption shall be granted; or
``(III) is operated by a State or possession or any
governmental entity or subordinate thereof, or by the United
States or District of Columbia, for exclusively public
purposes;
``(ii) the term `receiving agent' shall have the meaning
given that term in section 261.2 of title 37, Code of Federal
Regulations, as published in the Federal Register on July 8,
2002; and
``(iii) the term `webcaster' means a person or entity that
has obtained a compulsory license under section 112 or 114
and the implementing regulations therefor to make eligible
nonsubscription transmissions and ephemeral recordings.
``(F) The authority to make settlements pursuant to
subparagraph (A) shall expire December 15, 2002, except with
respect to noncommercial webcasters for whom the authority
shall expire May 31, 2003.''.
SEC. 5. DEDUCTIBILITY OF COSTS AND EXPENSES OF AGENTS AND
DIRECT PAYMENT TO ARTISTS OF ROYALTIES FOR
DIGITAL PERFORMANCES OF SOUND RECORDINGS.
(a) Findings.--Congress finds that--
(1) in the case of royalty payments from the licensing of
digital transmissions of sound recordings under subsection
(f) of section 114 of title 17, United States Code, the
parties have voluntarily negotiated arrangements under which
payments shall be made directly to featured recording artists
and the administrators of the accounts provided in subsection
(g)(2) of that section;
(2) such voluntarily negotiated payment arrangements have
been codified in regulations issued by the Librarian of
Congress, currently found in section 261.4 of title 37, Code
of Federal Regulations, as published in the Federal Register
on July 8, 2002;
(3) other regulations issued by the Librarian of Congress
were inconsistent with the voluntarily negotiated
arrangements by such parties concerning the deductibility of
certain costs incurred for licensing and arbitration, and
Congress is therefore restoring those terms as originally
negotiated among the parties; and
(4) in light of the special circumstances described in this
subsection, the uncertainty created by the regulations issued
by the Librarian of Congress, and the fact that all of the
interested parties have reached agreement, the voluntarily
negotiated arrangements agreed to among the parties are being
codified.
(b) Deductibility.--Section 114(g) of title 17, United
States Code, is amended by adding after paragraph (2) the
following:
``(3) A nonprofit agent designated to distribute receipts
from the licensing of transmissions in accordance with
subsection (f) may deduct from any of its receipts, prior to
the distribution of such receipts to any person or entity
entitled thereto other than copyright owners and performers
who have elected to receive royalties from another designated
agent and have notified such nonprofit agent in writing of
such election, the reasonable costs of such agent incurred
after November 1, 1995, in--
``(A) the administration of the collection, distribution,
and calculation of the royalties;
``(B) the settlement of disputes relating to the collection
and calculation of the royalties; and
``(C) the licensing and enforcement of rights with respect
to the making of ephemeral recordings and performances
subject to licensing under section 112 and this section,
including those incurred in participating in negotiations or
arbitration proceedings under section 112 and this section,
except that all costs incurred relating to the section 112
ephemeral recordings right may only be deducted from the
royalties received pursuant to section 112.
``(4) Notwithstanding paragraph (3), any designated agent
designated to distribute receipts from the licensing of
transmissions in accordance with subsection (f) may deduct
from any of its receipts, prior to the distribution of such
receipts, the reasonable costs identified in paragraph (3) of
such agent incurred after November 1, 1995, with respect to
such copyright owners and performers who have entered with
such agent a contractual relationship that specifies that
such costs may be deducted from such royalty receipts.''.
(c) Direct Payment to Artists.--Section 114(g)(2) of title
17, United States Code, is amended to read as follows:
``(2) An agent designated to distribute receipts from the
licensing of transmissions in accordance with subsection (f)
shall distribute such receipts as follows:
``(A) 50 percent of the receipts shall be paid to the
copyright owner of the exclusive right under section 106(6)
of this title to publicly perform a sound recording by means
of a digital audio transmission.
``(B) 2\1/2\ percent of the receipts shall be deposited in
an escrow account managed by an independent administrator
jointly appointed by copyright owners of sound recordings and
the American Federation of Musicians (or any successor
entity) to be distributed to nonfeatured musicians (whether
or not members of the American Federation of Musicians) who
have performed on sound recordings.
``(C) 2\1/2\ percent of the receipts shall be deposited in
an escrow account managed by an independent administrator
jointly appointed by copyright owners of sound recordings and
the American Federation of Television and Radio Artists (or
any successor entity) to be distributed to nonfeatured
vocalists (whether or not members of the American Federation
of Television and Radio Artists) who have performed on sound
recordings.
``(D) 45 percent of the receipts shall be paid, on a per
sound recording basis, to the recording
[[Page H8996]]
artist or artists featured on such sound recording (or the
persons conveying rights in the artists' performance in the
sound recordings).''.
SEC. 6. REPORT TO CONGRESS.
By not later than June 1, 2004, the Comptroller General of
the United States, in consultation with the Register of
Copyrights, shall conduct and submit to the Committee on the
Judiciary of the House of Representatives and the Committee
on the Judiciary of the Senate a study concerning the
economic arrangements among small commercial webcasters
covered by agreements entered into pursuant to section
114(f)(5)(A) of title 17, United States Code, as added by
section 4 of this Act, and third parties, and the effect of
those arrangements on royalty fees payable on a percentage of
revenue or expense basis.
Mr. BERMAN. Mr. Speaker, I rise to support House adoption of the
Senate substitute amendment to H.R. 5649. This legislation provides
important assistance to noncommercial webcasters, small commercial
webcasters, recording artists, and owners of sound recording
copyrights.
Early last month, the House passed H.R. 5469 on voice vote under
suspension of the rules. As passed by the House, H.R. 5469 provided
small commercial webcasters with a discount on the webcasting royalties
they owed. The House-passed bill actually specified the rates and terms
of the discount these webcasters would receive.
Unfortunately, H.R. 5469 was stalled in the Senate. Certain
broadcasters expressed concern that the terms of the discount specified
in H.R. 5469 would have a precedential effect in future webcasting
royalty-setting proceedings. Noncommercial webcasters expressed the
concern that H.R. 5469 did not give them a discount on webcasting
royalties, as it did for small commercial webcasters. The Senate
decided to amend H.R. 5469 to address these concerns, and the bill
before us today reflects those accommodations.
The Senate substitute delays the webcasting royalty obligations of
noncommercial webcasters, which came due late last month, until June
20, 2003. The bill also allows the collecting agent to delay the
royalty obligation owed by any 1 or more small commercial webcaster
until December 15, 2002.
Instead of specifying the rates and terms of the discount for
noncommercial and small commercial webcasters, the Senate substitute
delegates the ability to establish an industry-wide discount to the
collecting agent for copyright owners and recording artists. The
understating and expectation of both the House and the Senate is that
the collecting agent will offer noncommercial and small commercial
webcasters a royalty discount based on the terms and conditions set in
the House-passed version of H.R. 5469. In other words, Congress expects
that the collecting agent will offer noncommercial and small commercial
webcasters the same deal represented by H.R. 5469.
There is no doubt that this approach is unusual. Unlike the typical
statutory license rate-setting process, this approach does not involve
any governmental entity in the rate-setting process, except for the
Copyright Office's ministerial task of publishing those agreements in
the Federal Register. This should not be considered a precedent or
model for future legislation. It is a response to the unique
circumstances surrounding the reaction to the rates set by the
Librarian of Congress, the ensuing negotiations between copyright
owners and webcasters, and the opposition H.R. 5469 generated in the
Senate.
Again, I ask my colleagues to support the Senate substitute to H.R.
5469.
Mr. SENSENBRENNER. Mr. Speaker, on October 7, 2002, the House passed
H.R. 5469, the ``Small Webcaster Amendments Act of 2002,'' under
suspension of the Rules. Earlier this evening, the Senate passed a
substitute version of the bill, which I urge the House to adopt by
unanimous consent.
By way of background, H.R. 5469 as originally drafted suspended the
implementation of the Librarian of Congress's decision regarding
royalty rates that webcasters must pay to copyright owners for the
performance of copyrighted works for six months beginning on October
20. At the time, the purpose of this delay was to ensure that all
parties would receive the judicial process to which they are entitled
under the law before the rate took effect.
H.R. 5469 placed a burr under the saddle of both the copyright
holders and the small webcasters to conclude negotiations on these
matters that began last summer. The parties negotiated around the clock
and arrived at a deal that set new rates and payment terms, obviating
the need for further legal or administrative intervention.
Following House passage of H.R. 5469, Senator Helms expressed
concerns regarding the potential effect of codifying the actual
agreement in the statute on future rate proceedings. As a result, and
after further negotiations in the past two days, the parties have
developed the Helms substitute before us which makes the following
changes:
It contains a ``findings'' section which explains the need for the
legislation.
It suspends the obligation of non-commercial webcasters, such as
college radio stations, to pay copyright holders royalties owed until
June 20, 2003. This will give both sides extra time to negotiate a new
deal.
Under H.R. 5469 as originally passed by the House, SoundExchange, the
non-profit entity which collects and distributes royalties owed
copyright holders, is permitted to deduct its operating and legal
expenses from collected fees. The substitute retains this feature and
also permits any other for-profit entity designated as an agent by the
affected copyright holders to deduct its expenses in the same manner.
SoundExchange is authorized to negotiate an agreement on behalf of
all copyright owners and performers with small webcasters. Affected
small commercial webcasters will not pay royalties through December 15,
2002, which is intended to facilitate the implementation of a
settlement identical to the terms set forth in H.R. 5469 as passed by
the House.
The Comptroller General and the Register of Copyrights will develop a
joint report for the House and Senate Committees on the Judiciary
regarding the effect of ``economic arrangements among small webcasters
and third parties'' on royalty fees owed copyright holders.
Finally, Mr. Speaker, I would like to commend both the small
webcasters and the copyright owners for their diligent efforts to reach
an agreement. I understand that this is a complex and controversial
issue and both sides met the challenge by continuing to negotiate in
good faith.
H.R. 5469, as amended, is a good bill. It will ultimately accomplish
the same goal as H.R. 5469 as passed by the House, only in a different
way. I urge my colleagues to support the bill.
Taken From the Speaker's Table and Concurred in Senate Amendment
H.R. 3833, to facilitate the creation of a new, second-level Internet
domain within the United States country code domain that will be a
haven for material that promotes positive experiences for children and
families using the Internet, provides a safe online environment for
children, and helps to prevent children from being exposed to harmful
material on the Internet, and for other purposes.
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Dot Kids Implementation and
Efficiency Act of 2002''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress finds that--
(1) the World Wide Web presents a stimulating and
entertaining opportunity for children to learn, grow, and
develop educationally and intellectually;
(2) Internet technology also makes available an extensive
amount of information that is harmful to children, as studies
indicate that a significant portion of all material available
on the Internet is related to pornography;
(3) young children, when trying to use the World Wide Web
for positive purposes, are often presented--either mistakenly
or intentionally--with material that is inappropriate for
their age, which can be extremely frustrating for children,
parents, and educators;
(4) exposure of children to material that is inappropriate
for them, including pornography, can distort the education
and development of the Nation's youth and represents a
serious harm to American families that can lead to a host of
other problems for children, including inappropriate use of
chat rooms, physical molestation, harassment, and legal and
financial difficulties;
(5) young boys and girls, older teens, troubled youth,
frequent Internet users, chat room participants, online risk
takers, and those who communicate online with strangers are
at greater risk for receiving unwanted sexual solicitation on
the Internet;
(6) studies have shown that 19 percent of youth (ages 10 to
17) who used the Internet regularly were the targets of
unwanted sexual solicitation, but less than 10 percent of the
solicitations were reported to the police;
(7) children who come across illegal content should report
it to the congressionally authorized CyberTipline, an online
mechanism developed by the National Center for Missing and
Exploited Children, for citizens to report sexual crimes
against children;
(8) the CyberTipline has received more than 64,400 reports,
including reports of child pornography, online enticement for
sexual acts, child molestation (outside the family), and
child prostitution;
(9) although the computer software and hardware industries,
and other related industries, have developed innovative ways
to help parents and educators restrict material that is
harmful to minors through parental control protections and
self-regulation, to date such efforts have not provided a
national solution to the problem of minors accessing harmful
material on the World Wide Web;
(10) the creation of a ``green-light'' area within the
United States country code Internet domain, that will contain
only content that is appropriate for children under the age
of 13, is analogous to the creation of a children's section
within a library and will promote the positive experiences of
children and families in the United States; and
[[Page H8997]]
(11) while custody, care, and nurture of the child reside
first with the parent, the protection of the physical and
psychological well-being of minors by shielding them from
material that is harmful to them is a compelling governmental
interest.
(b) Purposes.--The purposes of this Act are--
(1) to facilitate the creation of a second-level domain
within the United States country code Internet domain for the
location of material that is suitable for minors and not
harmful to minors; and
(2) to ensure that the National Telecommunications and
Information Administration oversees the creation of such a
second-level domain and ensures the effective and efficient
establishment and operation of the new domain.
SEC. 3. NTIA AUTHORITY.
Section 103(b)(3) of the National Telecommunications and
Information Administration Organization Act (47 U.S.C.
902(b)(3)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) shall assign to the NTIA responsibility for providing
for the establishment, and overseeing operation, of a second-
level Internet domain within the United States country code
domain in accordance with section 157.''.
SEC. 4. CHILD-FRIENDLY SECOND-LEVEL INTERNET DOMAIN.
The National Telecommunications and Information
Administration Organization Act (47 U.S.C. 901 et seq.) is
amended in part C by adding at the end the following new
section:
``SEC. 157. CHILD-FRIENDLY SECOND-LEVEL INTERNET DOMAIN.
``(a) Responsibilities.--The NTIA shall require the
registry selected to operate and maintain the United States
country code Internet domain to establish, operate, and
maintain a second-level domain within the United States
country code domain that provides access only to material
that is suitable for minors and not harmful to minors (in
this section referred to as the `new domain').
``(b) Conditions of Contracts.--
``(1) Initial registry.--The NTIA shall not exercise any
option periods under any contract between the NTIA and the
initial registry to operate and maintain the United States
country code Internet domain unless the initial registry
agrees, during the 90-day period beginning upon the date of
the enactment of the Dot Kids Implementation and Efficiency
Act of 2002, to carry out, and to operate the new domain in
accordance with, the requirements under subsection (c).
Nothing in this subsection shall be construed to prevent the
initial registry of the United States country code Internet
domain from participating in the NTIA's process for selecting
a successor registry or to prevent the NTIA from awarding, to
the initial registry, the contract to be successor registry
subject to the requirements of paragraph (2).
``(2) Successor registries.--The NTIA shall not enter into
any contract for operating and maintaining the United States
country code Internet domain with any successor registry
unless such registry enters into an agreement with the NTIA,
during the 90-day period after selection of such registry,
that provides for the registry to carry out, and the new
domain to operate in accordance with, the requirements under
subsection (c).
``(c) Requirements of New Domain.--The registry and new
domain shall be subject to the following requirements:
``(1) Written content standards for the new domain, except
that the NTIA shall not have any authority to establish such
standards.
``(2) Written agreements with each registrar for the new
domain that require that use of the new domain is in
accordance with the standards and requirements of the
registry.
``(3) Written agreements with registrars, which shall
require registrars to enter into written agreements with
registrants, to use the new domain in accordance with the
standards and requirements of the registry.
``(4) Rules and procedures for enforcement and oversight
that minimize the possibility that the new domain provides
access to content that is not in accordance with the
standards and requirements of the registry.
``(5) A process for removing from the new domain any
content that is not in accordance with the standards and
requirements of the registry.
``(6) A process to provide registrants to the new domain
with an opportunity for a prompt, expeditious, and impartial
dispute resolution process regarding any material of the
registrant excluded from the new domain.
``(7) Continuous and uninterrupted service for the new
domain during any transition to a new registry selected to
operate and maintain new domain or the United States country
code domain.
``(8) Procedures and mechanisms to promote the accuracy of
contact information submitted by registrants and retained by
registrars in the new domain.
``(9) Operationality of the new domain not later than one
year after the date of the enactment of the Dot Kids
Implementation and Efficiency Act of 2002.
``(10) Written agreements with registrars, which shall
require registrars to enter into written agreements with
registrants, to prohibit two-way and multiuser interactive
services in the new domain, unless the registrant certifies
to the registrar that such service will be offered in
compliance with the content standards established pursuant to
paragraph (1) and is designed to reduce the risk of
exploitation of minors using such two-way and multiuser
interactive services.
``(11) Written agreements with registrars, which shall
require registrars to enter into written agreements with
registrants, to prohibit hyperlinks in the new domain that
take new domain users outside of the new domain.
``(12) Any other action that the NTIA considers necessary
to establish, operate, or maintain the new domain in
accordance with the purposes of this section.
``(d) Option Periods for Initial Registry.--The NTIA shall
grant the initial registry the option periods available under
the contract between the NTIA and the initial registry to
operate and maintain the United States country code Internet
domain if, and may not grant such option periods unless, the
NTIA finds that the initial registry has satisfactorily
performed its obligations under this Act and under the
contract. Nothing in this section shall preempt or alter the
NTIA's authority to terminate such contract for the operation
of the United States country code Internet domain for cause
or for convenience.
``(e) Treatment of Registry and Other Entities.--
``(1) In general.--Only to the extent that such entities
carry out functions under this section, the following
entities are deemed to be interactive computer services for
purposes of section 230(c) of the Communications Act of 1934
(47 U.S.C. 230(c)):
``(A) The registry that operates and maintains the new
domain.
``(B) Any entity that contracts with such registry to carry
out functions to ensure that content accessed through the new
domain complies with the limitations applicable to the new
domain.
``(C) Any registrar for the registry of the new domain that
is operating in compliance with its agreement with the
registry.
``(2) Savings provision.--Nothing in paragraph (1) shall be
construed to affect the applicability of any other provision
of title II of the Communications Act of 1934 to the entities
covered by subparagraph (A), (B), or (C) of paragraph (1).
``(f) Education.--The NTIA shall carry out a program to
publicize the availability of the new domain and to educate
the parents of minors regarding the process for utilizing the
new domain in combination and coordination with hardware and
software technologies that provide for filtering or blocking.
The program under this subsection shall be commenced not
later than 30 days after the date that the new domain first
becomes operational and accessible by the public.
``(g) Coordination With Federal Government.--The registry
selected to operate and maintain the new domain shall--
``(1) consult with appropriate agencies of the Federal
Government regarding procedures and actions to prevent minors
and families who use the new domain from being targeted by
adults and other children for predatory behavior,
exploitation, or illegal actions; and
``(2) based upon the consultations conducted pursuant to
paragraph (1), establish such procedures and take such
actions as the registry may deem necessary to prevent such
targeting.
The consultations, procedures, and actions required under
this subsection shall be commenced not later than 30 days
after the date that the new domain first becomes operational
and accessible by the public.
``(h) Compliance Report.--The registry shall prepare, on an
annual basis, a report on the registry's monitoring and
enforcement procedures for the new domain. The registry shall
submit each such report, setting forth the results of the
review of its monitoring and enforcement procedures for the
new domain, to the Committee on Energy and Commerce of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate.
``(i) Suspension of New Domain.--If the NTIA finds,
pursuant to its own review or upon a good faith petition by
the registry, that the new domain is not serving its intended
purpose, the NTIA shall instruct the registry to suspend
operation of the new domain until such time as the NTIA
determines that the new domain can be operated as intended.
``(j) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) Harmful to minors.--The term `harmful to minors'
means, with respect to material, that--
``(A) the average person, applying contemporary community
standards, would find, taking the material as a whole and
with respect to minors, that it is designed to appeal to, or
is designed to pander to, the prurient interest;
``(B) the material depicts, describes, or represents, in a
manner patently offensive with respect to minors, an actual
or simulated sexual act or sexual contact, an actual or
simulated normal or perverted sexual act, or a lewd
exhibition of the genitals or post-pubescent female breast;
and
``(C) taken as a whole, the material lacks serious,
literary, artistic, political, or scientific value for
minors.
``(2) Minor.--The term `minor' means any person under 13
years of age.
``(3) Registry.--The term `registry' means the registry
selected to operate and maintain the United States country
code Internet domain.
``(4) Successor registry.--The term `successor registry'
means any entity that enters into a contract with the NTIA to
operate and maintain the United States country code Internet
domain that covers any period after the termination or
expiration of the contract to operate and maintain the United
States country code Internet domain, and any option periods
under such contract, that was signed on October 26, 2001.
``(5) Suitable for minors.--The term `suitable for minors'
means, with respect to material, that it--
[[Page H8998]]
``(A) is not psychologically or intellectually
inappropriate for minors; and
``(B) serves--
``(i) the educational, informational, intellectual, or
cognitive needs of minors; or
``(ii) the social, emotional, or entertainment needs of
minors.''.
Mr. SHIMKUS. Mr. Speaker, it is with great pride that I rise today
upon the passage of H.R. 3833, The ``Dot Kids Implementation and
Efficiency Act of 2002.'' This bill creates a subdomain on the ``.us''
country-code that will store only child-friendly sites.
I would like to thank Senators Ensign and Dorgan as the Senate
sponsors of this bill, and I give special recognition to the coauthors,
Congressman Ed Markey and the Telecommunications Subcommittee Chairman
Fred Upton, for their tireless effort and leadership on this project.
In addition to the members, I would also like to thank the talented
and hard-working staff involved: Kelly Zerzan, Will Nordwind, Collin
Crowell, Brendan Kelsay, Tim Kurth, and my staffer, Courtney Andersen.
I would also like to than Bryan Cunningham and Emmett O'Keefe for
navigating this bill through the Senate. Hundreds of hours, a great
deal of research, thought, patience, compromise and perseverance went
into this legislation. It has truly been a labor of love for us all and
I thank you.
I must not forget the organizations that supported this vision. H.R.
3833 was endorsed by the National Center for Missing and Exploited
Children, the National Law Center for Children and Families, a Safer
America for Everyone (SAFE) as well as by the Family Research Council.
I thank these groups for taking a stand to help keep children safe on
the Internet.
Mr. Speaker, this is a good day for children in America. Soon, kids
will have their own playground on the Internet. When surfing on the
``kid.us'' domain, parents can rest assured that their children are
gaining the educational and entertainment benefits of the Internet,
without exposure to predators or inappropriate content.
We have all heard the horror stories about the harm that can come to
unsupervised children online. I will sleep better at night knowing that
we, as a body of representatives, took this positive step to help
safeguard our children against the dangers that lurk on the World Wide
Web.
I thank my colleagues for once again voting to pass H.R. 3833, the
``Dot Kids Act.'' This is a good piece of legislation, which
demonstrates to our children that we care.
Mr. MARKEY. Mr. Speaker, I rise in support of this bill. I am an
original cosponsor of the bill along with Mr. Shimkus, Chairman Upton,
as well as many other members. I want to commend Chairman Tauzin,
Ranking Member Dingell and everyone involved for the excellent process
on this bill that has led to a consensus, bipartisan proposal. This
bill was approved unanimously by the House Energy and Commerce
Committee, and was approved by the House back in May by a vote of 406
to 2.
The Senate has slightly altered the House-passed version and I
support approving this amended version and sending it to President Bush
for his signature. This is a consensus bill and a model of how
legislative proposals can achieve success in a closely divided
Congress. There is a reason that this is the sole telecommunications
bill of any significance for ordinary people that we will enact in the
107th Congress. And that's because it was a bill that we worked
together on--Republicans and Democrats--from the start. When we
encountered issues, we resolved them by working together, and we sought
out bipartisan support on the other side of the Capitol as well.
Senator Dorgan and Senator Ensign also deserve tremendous credit for
this achievement.
As many parents today know, the Internet often appears to be a
veritable jungle of web sites. When a child logs on to search for
games, stories, or educational material, search engines often turn up
pages for the kids laden with pornography, violence or other content
that is simply not appropriate for young children. To give children
their own playground on the Internet, and to facilitate the easier
browsing and filtering of content that many parents desire, we are
poised now to enact H.R. 3833, the ``Dot Kids Implementation and
Efficiency Act.''
This bill directs the Department of Commerce, through the National
Telecommunications and Information Administration (NTIA) to accelerate
the creation of a ``dot kids'' domain by making it a secondary domain
under our nation's country code top level domain, which is ``dot us.''
The Department of Commerce awarded a free contract last October to
authorize private sector management and commercialization of ``dot
U.S.''
I opposed the awarding of a free contract to a company to essentially
manage and profit from a public asset. We only have one country code
and the Department of Commerce should have ensured that the broader
public interest was incorporated in any contract to manage the dot U.S.
domain, or, as I indicated in a letter to the Department of Commerce in
the summer of 2001, the contract should have been auctioned to the
highest qualified bidder. We should be long past the time in this
country of giving away public assets to private companies to profit
from for free. Nevertheless, the DoC awarded the dot U.S. contract
to NeuStar in October of 2001, and Congress must now subsequently
ensure that future contract awards or extensions incorporate public
interest conditions in such contract awards and ``dot.kids'' is clearly
in the public interest.
What is essentially being proposed in the creation of a place on the
Internet for websites that end in ``dot kids-dot U.S.'' (e.g.,
www.example.kids.us) The proposed ``dot kids'' domain will be a
cyberspace sanctuary for content that is suitable for kids and will be
an area devoted of content that is harmful to such minors.
I want to address at this point, very briefly, some of the free
speech concerns that any endeavor that any endeavor of this type will
inevitably raise. First let me emphasize how this approach departs from
previous Congressional activity in this policy area. First, the
proposed legislation will not subject all of the Internet
communications to ``harmful to minors'' standard. If you're in
Tennessee, Taiwan, or Timbuktu you can publish or speak any content you
want on the Internet. This proposal doesn't affect you're ability to do
so on a ``dot com,'' ``dot net,'' ``dot org,'' or anywhere else. This
proposal now only addresses a subset of Internet commerce--the ``dot
us'' space.
Moreover, it doesn't even curtail speech throughout the entirety of
the ``dot U.S.'' country code domain. If you're in Providence, Rhode
Island or Provo, Utah under this bill you are free to exercise your
constitutional rights and this legislation contains no proposal that
would subject anyone utilizing the ``dot us'' space to a standard
suitable only for kids. Speech more appropriate for adults or teenagers
will not be affected by this bill and can appear elsewhere in the ``dot
U.S.'' domain.
The bill solely stipulates that if you want to operate in the ``dot
kids-dot U.S.'' area--in other words, a mere subset of the ``dot us''
country code domain--you have entered a kid-friendly zone--a green
light district if you will--where the content is suitable for children
12 and under. The ``dot kids'' proposal is not aimed at censoring
Internet content per se. Rather, it is crafted to help organize content
more appropriate for kids in a safe and secure cyber-zone, where the
risk of young children clicking outside of that zone to unsuitable
content, or being preyed upon or exploited online by adults posing as
kids, is vastly diminished. Organizing kid-friendly content in this
manner will enhance the effectiveness of filtering software and may
better enable parents to set their children's browsers so that their
kids only surf within the ``dot kids'' domain.
And I also want to emphasize that use of the ``dot kids'' domain is
not compulsory. Signing up for a ``dot kids'' domain--or parents
sending their kids to websites in that location--remains completely
voluntary and the free choice of both content speakers and parents.
Finally, I want to note that this bill is not meant in any way to
diminish or thwart the many laudable private sector efforts to create
new and alternative ways for kids to have a safe and educational online
experience. Our efforts here today are meant to supplement, not
supplant, initiatives underway elsewhere by ensuring that our ``dot
us'' country code reflects our public interest goals as a society in
away that hopefully can harness the best of advance technology for kids
across the country.
Thank you, Mr. Speaker, and I again want to thank Mr. Shimkus,
Chairman Tauzin, Mr. Dingell, and Chairman Upton for their work on the
bill.
Taken From the Speaker's Table and Amended
S. 2237, to amend Title 38, United States Code, to modify and improve
authorities relating to compensation and pension benefits, education
benefits, housing benefits, and other benefits for veterans, to improve
the administration of benefits for veterans, and for other purposes.
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans
Benefits Act of 2002''.
[[Page H8999]]
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.
TITLE I--COMPENSATION AND BENEFITS IMPROVEMENTS
Sec. 101. Retention of CHAMPVA for surviving spouses remarrying after
age 55.
Sec. 102. Clarification of entitlement to special monthly compensation
for women veterans who have service-connected loss of
breast tissue.
Sec. 103. Specification of hearing loss required for compensation for
hearing loss in paired organs.
Sec. 104. Assessment of acoustic trauma associated with military
service from World War II to present.
TITLE II--MEMORIAL AFFAIRS
Sec. 201. Prohibition on certain additional benefits for persons
committing capital crimes.
Sec. 202. Procedures for disqualification of persons committing capital
crimes for interment or memorialization in national
cemeteries.
Sec. 203. Application of Department of Veterans Affairs benefit for
Government markers for marked graves of veterans at
private cemeteries to veterans dying on or after
September 11, 2001.
Sec. 204. Authorization of placement of a memorial in Arlington
National Cemetery honoring World War II veterans who
fought in the Battle of the Bulge.
TITLE III--OTHER MATTERS
Sec. 301. Increase in aggregate annual amount available for State
approving agencies for administrative expenses for fiscal
years 2003 through 2007.
Sec. 302. Authority for Veterans' Mortgage Life Insurance to be carried
beyond age 70.
Sec. 303. Authority to guarantee hybrid adjustable rate mortgages.
Sec. 304. Increase in amount payable as Medal of Honor special pension.
Sec. 305. Extension of protections under the Soldiers' and Sailors'
Civil Relief Act of 1940 to National Guard members called
to active duty under title 32, United States Code.
Sec. 306. Extension of income verification authority.
Sec. 307. Fee for loan assumption.
Sec. 308. Technical and clarifying amendments.
Sec. 309. Codification of cost-of-living adjustment provided in Public
Law 107-247.
TITLE IV--JUDICIAL MATTERS
Sec. 401. Standard for reversal by Court of Appeals for Veterans Claims
of erroneous finding of fact by Board of Veterans'
Appeals.
Sec. 402. Review by Court of Appeals for the Federal Circuit of
decisions of law of Court of Appeals for Veterans Claims.
Sec. 403. Authority of Court of Appeals for Veterans Claims to award
fees under Equal Access to Justice Act for non-attorney
practitioners.
SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.
Except as otherwise expressly provided, whenever in this
Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or
other provision of title 38, United States Code.
TITLE I--COMPENSATION AND BENEFITS IMPROVEMENTS
SEC. 101. RETENTION OF CHAMPVA FOR SURVIVING SPOUSES
REMARRYING AFTER AGE 55.
(a) Exception to Termination of Benefits Upon Remarriage.--
Paragraph (2) of section 103(d) is amended--
(1) by inserting ``(A) after ``(2)''; and
(2) by adding at the end the following:
``(B) The remarriage after age 55 of the surviving spouse
of a veteran shall not bar the furnishing of benefits under
section 1781 of this title to such person as the surviving
spouse of the veteran.''.
(b) Application for Benefits.--In the case of an individual
who but for having remarried would be eligible for medical
care under section 1781 of title 38, United States Code, and
whose remarriage was before the date of the enactment of this
Act and after the individual had attained age 55, the
individual shall be eligible for such medical care by reason
of the amendments made by subsection (a) only if an
application for such medical care is received by the
Secretary of Veterans Affairs during the one-year period
ending on the effective date specified in subsection (c).
(c) Effective Date.--The amendments made by this section
shall take effect on the date that is 60 days after the date
of the enactment of this Act.
SEC. 102. CLARIFICATION OF ENTITLEMENT TO SPECIAL MONTHLY
COMPENSATION FOR WOMEN VETERANS WHO HAVE
SERVICE-CONNECTED LOSS OF BREAST TISSUE.
Section 1114(k) is amended by striking ``one or both
breasts (including loss by mastectomy)'' and inserting ``25
percent or more of tissue from a single breast or both
breasts in combination (including loss by mastectomy or
partial mastectomy) or has received radiation treatment of
breast tissue''.
SEC. 103. SPECIFICATION OF HEARING LOSS REQUIRED FOR
COMPENSATION FOR HEARING LOSS IN PAIRED ORGANS.
Section 1160(a)(3) is amended--
(1) by striking ``total deafness'' the first place it
appears and inserting ``deafness compensable to a degree of
10 percent or more''; and
(2) by striking ``total deafness'' the second place it
appears and inserting ``deafness''.
SEC. 104. ASSESSMENT OF ACOUSTIC TRAUMA ASSOCIATED WITH
MILITARY SERVICE FROM WORLD WAR II TO PRESENT.
(a) Assessment by National Academy of Sciences.--The
Secretary of Veterans Affairs shall seek to enter into an
agreement with the National Academy of Sciences for the
Academy to perform the activities specified in this section.
The Secretary shall seek to enter into the agreement not
later than 60 days after the date of the enactment of this
Act.
(b) Duties Under Agreement.--Under the agreement under
subsection (a), the National Academy of Sciences shall do the
following:
(1) Review and assess available data on hearing loss that
could reasonably be expected to have been incurred by members
of the Armed Forces during the period from the beginning of
World War II to the date of the enactment of this Act.
(2) Identify the different sources of acoustic trauma that
members of the Armed Forces could reasonably be expected to
have been exposed to during the period from the beginning of
World War II to the date of the enactment of this Act.
(3) Determine how much exposure to each source of acoustic
trauma identified under paragraph (2) is required to cause or
contribute to hearing loss, hearing threshold shift, or
tinnitus, as the case may be, and at what noise level.
(4) Determine whether or not such hearing loss, hearing
threshold shift, or tinnitus, as the case may be, is--
(A) immediate or delayed onset;
(B) cumulative;
(C) progressive; or
(D) any combination of subparagraph (A), (B), and (C).
(5) Identify age, occupational history, and other factors
which contribute to an individual's noise-induced hearing
loss.
(6) Identify--
(A) the period of time at which audiometric measures used
by the Armed Forces became adequate to evaluate individual
hearing threshold shift; and
(B) the period of time at which hearing conservation
measures to prevent individual hearing threshold shift were
available to members of the Armed Forces, shown separately
for each of the Army, Navy, Air Force, Marine Corps, and
Coast Guard, and, for each such service, shown separately for
members exposed to different sources of acoustic trauma
identified under paragraph (2).
(c) Report.--Not later than 180 days after the date of the
entry into the agreement referred to in subsection (a), the
National Academy of Sciences shall submit to the Secretary a
report on the activities of the National Academy of Sciences
under the agreement, including the results of the activities
required by subsection (b).
(d) Report on Administration of Benefits for Hearing Loss
and Tinnitus.--(1) Not later than 180 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs
shall submit to the Committees on Veterans' Affairs of the
Senate and the House of Representatives a report on the
claims submitted to the Secretary for disability compensation
or health care for hearing loss or tinnitus.
(2) The report under paragraph (1) shall include the
following:
(A) The number of decisions issued by the Secretary in each
of fiscal years 2000, 2001, and 2002 on claims for disability
compensation for hearing loss, tinnitus, or both.
(B) Of the decisions referred to in subparagraph (A)--
(i) the number in which compensation was awarded, and the
number in which compensation was denied, set forth by fiscal
year; and
(ii) the total amount of disability compensation paid on
such claims during each such fiscal year.
(C) The total cost to the Department of Veterans Affairs of
adjudicating the claims referred to in subparagraph (A), set
forth in terms of full-time employee equivalents (FTEEs).
(D) The total number of veterans who sought treatment in
Department of Veterans Affairs health care facilities during
fiscal years specified in subparagraph (A) for hearing-
related disorders, set forth by the number of veterans per
year.
(E) The health care furnished to veterans referred to in
subparagraph (D) for hearing-related disorders, including the
number of veterans furnished hearing aids and the cost of
furnishing such hearing aids.
TITLE II--MEMORIAL AFFAIRS
SEC. 201. PROHIBITION ON CERTAIN ADDITIONAL BENEFITS FOR
PERSONS COMMITTING CAPITAL CRIMES.
(a) Presidential Memorial Certificate.--Section 112 is
amended by adding at the end the following new subsection:
``(c) A certificate may not be furnished under the program
under subsection (a) on
[[Page H9000]]
behalf of a deceased person described in section 2411(b) of
this title.''.
(b) Flag to Drape Casket.--Section 2301 is amended--
(1) by redesignating subsection (g) as subsection (h); and
(2) by inserting after subsection (f) the following new
subsection (g):
``(g) A flag may not be furnished under this section in the
case of a person described in section 2411(b) of this
title.''.
(c) Headstone or Marker for Grave.--Section 2306 is amended
by adding at the end the following new subsection:
``(g)(1) A headstone or marker may not be furnished under
subsection (a) for the unmarked grave of a person described
in section 2411(b) of this title.
``(2) A memorial headstone or marker may not be furnished
under subsection (b) for the purpose of commemorating a
person described in section 2411(b) of this title.
``(3) A marker may not be furnished under subsection (d)
for the grave of a person described in section 2411(b) of
this title.''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to deaths occurring on or after the
date of the enactment of this Act.
SEC. 202. PROCEDURES FOR DISQUALIFICATION OF PERSONS
COMMITTING CAPITAL CRIMES FOR INTERMENT OR
MEMORIALIZATION IN NATIONAL CEMETERIES.
Section 2411(a)(2) is amended--
(1) by striking ``The prohibition'' and inserting ``In the
case of a person described in subsection (b)(1) or (b)(2),
the prohibition''; and
(2) by striking ``or finding under subsection (b)'' and
inserting ``referred to in subsection (b)(1) or (b)(2), as
the case may be,''.
SEC. 203. APPLICATION OF DEPARTMENT OF VETERANS AFFAIRS
BENEFIT FOR GOVERNMENT MARKERS FOR MARKED
GRAVES OF VETERANS AT PRIVATE CEMETERIES TO
VETERANS DYING ON OR AFTER SEPTEMBER 11, 2001.
(a) In General.--Subsection (d) of section 502 of the
Veterans Education and Benefits Expansion Act of 2001 (Public
Law 107-103; 115 Stat. 995; 38 U.S.C. 2306 note) is amended
by striking ``the date of the enactment of this Act'' and
inserting ``September 11, 2001''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as if included in the enactment of such
section 502.
SEC. 204. AUTHORIZATION OF PLACEMENT OF A MEMORIAL IN
ARLINGTON NATIONAL CEMETERY HONORING WORLD WAR
II VETERANS WHO FOUGHT IN THE BATTLE OF THE
BULGE.
The Secretary of the Army is authorized to place in
Arlington National Cemetery a memorial marker honoring
veterans who fought in the battle in the European theater of
operations during World War II known as the Battle of the
Bulge.
TITLE III--OTHER MATTERS
SEC. 301. INCREASE IN AGGREGATE ANNUAL AMOUNT AVAILABLE FOR
STATE APPROVING AGENCIES FOR ADMINISTRATIVE
EXPENSES FOR FISCAL YEARS 2003 THROUGH 2007.
The first sentence of section 3674(a)(4) is amended by
inserting before the period at the end the following: ``, for
fiscal year 2003, $14,000,000, for fiscal year 2004,
$18,000,000, for fiscal year 2005, $18,000,000, for fiscal
year 2006, $19,000,000, and for fiscal year 2007,
$19,000,000''.
SEC. 302. AUTHORITY FOR VETERANS' MORTGAGE LIFE INSURANCE TO
BE CARRIED BEYOND AGE 70.
Section 2106 is amended--
(1) in subsection (a), by inserting ``age 69 or younger''
after ``any eligible veteran''; and
(2) in subsection (i), by striking paragraph (2) and
redesignating paragraphs (3) and (4) as paragraphs (2) and
(3), respectively.
SEC. 303. AUTHORITY TO GUARANTEE HYBRID ADJUSTABLE RATE
MORTGAGES.
(a) Two-Year Demonstration Project To Guarantee Certain
Adjustable Rate Mortgages.--Chapter 37 is amended by
inserting after section 3707 the following new section:
``Sec. 3707A. Hybrid adjustable rate mortgages
``(a) The Secretary shall carry out a demonstration project
under this section during fiscal years 2004 and 2005 for the
purpose of guaranteeing loans in a manner similar to the
manner in which the Secretary of Housing and Urban
Development insures adjustable rate mortgages under section
251 of the National Housing Act in accordance with the
provisions of this section with respect to hybrid adjustable
rate mortgages described in subsection (b).
``(b) Adjustable rate mortgages that are guaranteed under
this section shall be adjustable rate mortgages (commonly
referred to as `hybrid adjustable rate mortgages') having
interest rate adjustment provisions that--
``(1) specify an initial rate of interest that is fixed for
a period of not less than the first three years of the
mortgage term;
``(2) provide for an initial adjustment in the rate of
interest by the mortgagee at the end of the period described
in paragraph (1); and
``(3) comply in such initial adjustment, and any subsequent
adjustment, with subsection (c).
``(c) Interest rate adjustment provisions of a mortgage
guaranteed under this section shall--
``(1) correspond to a specified national interest rate
index approved by the Secretary, information on which is
readily accessible to mortgagors from generally available
published sources;
``(2) be made by adjusting the monthly payment on an annual
basis;
``(3) be limited, with respect to any single annual
interest rate adjustment, to a maximum increase or decrease
of 1 percentage point; and
``(4) be limited, over the term of the mortgage, to a
maximum increase of 5 percentage points above the initial
contract interest rate.
``(d) The Secretary shall promulgate underwriting standards
for loans guaranteed under this section, taking into
account--
``(1) the status of the interest rate index referred to in
subsection (c)(1) and available at the time an underwriting
decision is made, regardless of the actual initial rate
offered by the lender;
``(2) the maximum and likely amounts of increases in
mortgage payments that the loans would require;
``(3) the underwriting standards applicable to adjustable
rate mortgages insured under title II of the National Housing
Act; and
``(4) such other factors as the Secretary finds
appropriate.
``(e) The Secretary shall require that the mortgagee make
available to the mortgagor, at the time of loan application,
a written explanation of the features of the adjustable rate
mortgage, including a hypothetical payment schedule that
displays the maximum potential increases in monthly payments
to the mortgagor over the first five years of the mortgage
term.''.
(b) Clerical Amendment.--The table of sections at the
beginning of chapter 37 is amended by inserting after the
item relating to section 3707 the following new item:
``3707A. Hybrid adjustable rate mortgages.''.
SEC. 304. INCREASE IN AMOUNT PAYABLE AS MEDAL OF HONOR
SPECIAL PENSION.
(a) Increase in Amount.--Subsection (a) of section 1562 is
amended by striking ``$600'' and inserting ``$1,000, as
adjusted from time to time under subsection (e)''.
(b) Annual Adjustment.--That section is further amended by
adding at the end the following new subsection:
``(e) Effective as of December 1 each year, the Secretary
shall increase the amount of monthly special pension payable
under subsection (a) as of November 30 of such year by the
same percentage as the percentage by which benefit amounts
payable under title II of the Social Security Act (42 U.S.C.
401 et seq.) are increased effective December 1 of such year
as a result of a determination under section 215(i) of that
Act (42 U.S.C. 415(i)).''.
(c) Payment of Lump Sum for Period Between Act of Valor and
Commencement of Special Pension.--That section is further
amended by adding after subsection (e), as added by
subsection (b) of this section, the following new subsection:
``(f)(1) The Secretary shall pay, in a lump sum, to each
person who is in receipt of special pension payable under
this section an amount equal to the total amount of special
pension that the person would have received during the period
beginning on the first day of the first month beginning after
the date of the act for which the person was awarded the
Medal of Honor and ending on the last day of the month
preceding the month in which the person's special pension in
fact commenced.
``(2) For each month of a period referred to in paragraph
(1), the amount of special pension payable to a person shall
be determined using the rate of special pension that was in
effect for such month, and shall be payable only if the
person would have been entitled to payment of special pension
for such month under laws for eligibility for special pension
(with the exception of the eligibility law requiring a person
to have been awarded a Medal of Honor) in effect at the
beginning of such month.''.
(d) Effective Date.--(1) Except as provided in paragraph
(2), the amendments made by subsections (a) and (b) shall
take effect on September 1, 2003. No payment may be made
pursuant to subsection (f) of section 1562 of title 38,
United States Code, as added by subsection (c) of this
section, before October 1, 2003.
(2) The Secretary of Veterans Affairs shall not make any
adjustment under subsection (e) of section 1562 of title 38,
United States Code, as added by subsection (b) of this
section, in 2003.
SEC. 305. EXTENSION OF PROTECTIONS UNDER THE SOLDIERS' AND
SAILORS' CIVIL RELIEF ACT OF 1940 TO NATIONAL
GUARD MEMBERS CALLED TO ACTIVE DUTY UNDER TITLE
32, UNITED STATES CODE.
Section 101(1) of the Soldiers' and Sailors' Civil Relief
Act of 1940 (50 U.S.C. App. 511(1)) is amended--
(1) in the first sentence--
(A) by striking ``and all'' and inserting ``all''; and
(B) by inserting before the period the following: ``, and
all members of the National Guard on service described in the
following sentence''; and
(2) in the second sentence, by inserting before the period
the following: ``, and, in the case of a member of the
National Guard, shall include service under a call to active
service authorized by the President or the Secretary of
Defense for a period of more than 30 consecutive days under
section 502(f) of title 32, United States Code, for purposes
of responding to a national emergency declared by the
President and supported by Federal funds''.
[[Page H9001]]
SEC. 306. EXTENSION OF INCOME VERIFICATION AUTHORITY.
Section 6103(l)(7)(D) of the Internal Revenue Code of 1986
is amended by striking ``September 30, 2003'' in the second
sentence after clause (ix) and inserting ``September 30,
2008''.
SEC. 307. FEE FOR LOAN ASSUMPTION.
(a) In General.--For the period described in subsection
(b), the Secretary of Veterans Affairs shall apply section
3729(b)(2)(I) of title 38, United States Code, by
substituting ``1.00'' for ``0.50'' each place it appears.
(b) Period Described.--The period referred to in subsection
(a) is the period that begins on the date that is 7 days
after the date of the enactment of this Act and ends on
September 30, 2003.
SEC. 308. TECHNICAL AND CLARIFYING AMENDMENTS.
(a) Eligibility of Certain Additional Vietnam Era Veterans
for Education Benefits.--Section 3011(a)(1)(C)(ii) is amended
by striking ``on or''.
(b) Accelerated Payment of Assistance for Education Leading
to Employment in High Technology Industry.--(1) Subsection
(b)(1) of section 3014A is amended by striking ``employment
in a high technology industry'' and inserting ``employment in
a high technology occupation in a high technology industry''.
(2)(A) The heading for section 3014A is amended to read as
follows:
``Sec. 3014A. Accelerated payment of basic educational
assistance for education leading to employment in high
technology occupation in high technology industry''.
(B) The table of sections at the beginning of chapter 30 is
amended by striking the item relating to section 3014A and
inserting the following new item:
``3014A. Accelerated payment of basic educational assistance for
education leading to employment in high technology
occupation in high technology industry.''.
(c) Source of Funds for Increased Usage of Montgomery GI
Bill Entitlement Under Entitlement Transfer Authority.--(1)
Section 3035(b) is amended--
(A) in paragraph (1), by striking ``paragraphs (2) and (3)
of this subsection,'' and inserting ``paragraphs (2), (3),
and (4),''; and
(B) by adding at the end the following new paragraph:
``(4) Payments attributable to the increased usage of
benefits as a result of transfers of entitlement to basic
educational assistance under section 3020 of this title shall
be made from the Department of Defense Education Benefits
Fund established under section 2006 of title 10 or from
appropriations made to the Department of Transportation, as
appropriate.''.
(2) The amendments made by this subsection shall take
effect as if included in the enactment of the National
Defense Authorization Act for Fiscal Year 2002 (Public Law
107-107), to which such amendments relate.
(d) Licensing or Certification Tests.--Section
3689(c)(1)(B) is amended by striking ``the test'' and
inserting ``such test, or a test to certify or license in a
similar or related occupation,''.
(e) Period of Eligibility for Survivors' and Dependents'
Assistance Education Benefits.--(1) Section 3512(a) is
amended--
(A) in paragraph (3)--
(i) by striking ``paragraph (4)'' in the matter preceding
subparagraph (A) and inserting ``paragraph (4) or (5)''; and
(ii) by striking ``subsection (d)'' in subparagraph (C)(i)
and inserting ``subsection (d), or any date between the two
dates described in subsection (d)'';
(B) by redesignating paragraphs (4), (5), (6), and (7) as
paragraphs (5), (6), (7), and (8), respectively;
(C) by inserting after paragraph (3) the following new
paragraph (4):
``(4) if the person otherwise eligible under paragraph (3)
fails to elect a beginning date of entitlement in accordance
with that paragraph, the beginning date of the person's
entitlement shall be the date of the Secretary's decision
that the parent has a service-connected total disability
permanent in nature, or that the parent's death was service-
connected, whichever is applicable;''; and
(D) in paragraph (6), as so redesignated, by striking
``paragraph (4)'' and inserting ``paragraph (5)''.
(2) The amendments made by this subsection shall take
effect November 1, 2000.
(f) Loan Fees.--(1) Section 3703(e)(2)(A) is amended by
striking ``3729(b)'' and inserting ``3729(b)(2)(I)''.
(2) The amendment made by paragraph (1) shall take effect
as if included in the enactment of section 402 of the
Veterans Benefits and Health Care Improvement Act of 2000
(Public Law 106-419; 114 Stat. 1861).
(g) Additional Miscellaneous Technical Amendments to Title
38, United States Code.--(1)(A) The tables of chapters
preceding part I and at the beginning of part IV are each
amended by striking ``5101'' in the item relating to chapter
51 and inserting ``5100''.
(B) The table of parts preceding part I is amended by
striking ``5101'' in the item relating to part IV and
inserting ``5100''.
(2) Section 107(d)(2) is amended by striking ``the date of
the enactment of this subsection'' and inserting ``November
1, 2000,''.
(3) Section 1701(10)(A) is amended by striking ``the date
of the enactment of the Veterans' Millennium Health Care and
Benefits Act'' and inserting ``November 30, 1999,''.
(4) Section 1705(c)(1) is amended by striking ``Effective
on October 1, 1998, the Secretary'' and inserting ``The
Secretary''.
(5) Section 1707(a) is amended by inserting ``(42 U.S.C.
14401 et seq.)'' before the period at the end.
(6) Section 1710(e)(1)(D) is amended by striking ``the date
of the enactment of this subparagraph'' and inserting
``November 11, 1998''.
(7) Section 1729B(b) is amended by striking ``the date of
the enactment of this section'' and inserting ``November 30,
1999,''.
(8) Section 1781(d) is amended--
(A) in paragraph (1)(B)(i), by striking ``as of the date''
and all that follows through ``of 2001'' and inserting ``as
of June 5, 2001''; and
(B) in paragraph (4), by striking ``paragraph'' and
inserting ``subsection''.
(9) Section 3018C(e)(2)(B) is amended by striking the comma
after ``April''.
(10) Section 3031(a)(3) is amended by striking ``the date
of the enactment of this paragraph'' and inserting ``December
27, 2001''.
(11) Section 3485(a)(4) is amended in subparagraphs (A),
(C), and (F), by striking ``the five-year period beginning on
the date of the enactment of the Veterans Education and
Benefits Expansion Act of 2001'' and inserting ``the period
preceding December 27, 2006''.
(12) Section 3734(b)(2) is amended--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraphs (C), (D), (E), and (F)
as subparagraphs (B) (C), (D), and (E), respectively.
(13) Section 7315(a) is amended by inserting ``Veterans
Health'' in the first sentence after ``in the''.
(h) Public Law 107-103.--Effective as of December 27, 2001,
and as if included therein as originally enacted, section
103(c) of the Veterans Education and Benefits Expansion Act
of 2001 (Public Law 107-103; 115 Stat. 979) is amended by
inserting closing quotation marks at the end of the text
inserted by the amendment made by paragraph (2).
(i) Public Law 102-86.--Section 403(e) of the Veterans'
Benefits Programs Improvement Act of 1991 (Public Law 102-86;
105 Stat. 424) is amended by striking ``section 321'' and all
that follows through ``and 484)'' and inserting ``subchapter
II of chapter 5 of title 40, United States Code, sections 541
through 555 and 1302 of title 40, United States Code''.
SEC. 309. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED
IN PUBLIC LAW 107-247.
(a) Veterans' Disability Compensation.--Section 1114 is
amended--
(1) by striking ``$103'' in subsection (a) and inserting
``$104'';
(2) by striking ``$199'' in subsection (b) and inserting
``$201'';
(3) by striking ``$306'' in subsection (c) and inserting
``$310'';
(4) by striking ``$439'' in subsection (d) and inserting
``$445'';
(5) by striking ``$625'' in subsection (e) and inserting
``$633'';
(6) by striking ``$790'' in subsection (f) and inserting
``$801'';
(7) by striking ``$995'' in subsection (g) and inserting
``$1,008'';
(8) by striking ``$1,155'' in subsection (h) and inserting
``$1,171'';
(9) by striking ``$1,299'' in subsection (i) and inserting
``$1,317'';
(10) by striking ``$2,163'' in subsection (j) and inserting
``$2,193'';
(11) in subsection (k)--
(A) by striking ``$80'' both places it appears and
inserting ``$81''; and
(B) by striking ``$2,691'' and ``$3,775'' and inserting
``$2,728'' and ``$3,827'', respectively;
(12) by striking ``$2,691'' in subsection (l) and inserting
``$2,728'';
(13) by striking ``$2,969'' in subsection (m) and inserting
``$3,010'';
(14) by striking ``$3,378'' in subsection (n) and inserting
``$3,425'';
(15) by striking ``$3,775'' each place it appears in
subsections (o) and (p) and inserting ``$3,827'';
(16) by striking ``$1,621'' and ``$2,413'' in subsection
(r) and inserting ``$1,643'' and ``$2,446'', respectively;
and
(17) by striking ``$2,422'' in subsection (s) and inserting
``$2,455''.
(b) Additional Compensation for Dependents.--Section
1115(1) is amended--
(1) by striking ``$124'' in subparagraph (A) and inserting
``$125'';
(2) by striking ``$213'' in subparagraph (B) and inserting
``$215'';
(3) by striking ``$84'' in subparagraph (C) and inserting
``$85'';
(4) by striking ``$100'' in subparagraph (D) and inserting
``$101'';
(5) by striking ``$234'' in subparagraph (E) and inserting
``$237''; and
(6) by striking ``$196'' in subparagraph (F) and inserting
``$198''.
(c) Clothing Allowance for Certain Disabled Veterans.--
Section 1162 is amended by striking ``$580'' and inserting
``$588''.
(d) Dependency and Indemnity Compensation for Surviving
Spouses.--(1) Section 1311(a) is amended--
(A) by striking ``$935'' in paragraph (1) and inserting
``$948''; and
(B) by striking ``$202'' in paragraph (2) and inserting
``$204''.
(2) The table in section 1311(a)(3) is amended to read as
follows:
Monthly Monthly
``Pay grade rate Pay grade rate
E-1...................... $948 W-4.......... $1,134
E-2...................... 948 O-1.......... 1,001
E-3...................... 948 O-2.......... 1,035
[[Page H9002]]
E-4...................... 948 O-3.......... 1,107
E-5...................... 948 O-4.......... 1,171
E-6...................... 948 O-5.......... 1,289
E-7...................... 980 O-6.......... 1,453
E-8...................... 1,035 O-7.......... 1,570
E-9...................... \1\ 1,080 O-8.......... 1,722
W-1...................... 1,001 O-9.......... 1,843
W-2...................... 1,042 O-10......... \2\ 2,021
W-3...................... 1,072
`` \1\If the veteran served as sergeant major of the Army, senior
enlisted advisor of the Navy, chief master sergeant of the Air Force,
sergeant major of the Marine Corps, or master chief petty officer of
the Coast Guard, at the applicable time designated by section 1302 of
this title, the surviving spouse's rate shall be $1,165.
`` \2\If the veteran served as Chairman or Vice-Chairman of the Joint
Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
Operations, Chief of Staff of the Air Force, Commandant of the Marine
Corps, or Commandant of the Coast Guard, at the applicable time
designated by section 1302 of this title, the surviving spouse's rate
shall be $2,168.''.
(3) Section 1311(b) is amended by striking ``$234'' and
inserting ``$237''.
(4) Section 1311(c) is amended by striking ``$234'' and
inserting ``$237''.
(5) Section 1311(d) is amended by striking ``$112'' and
inserting ``$113''.
(e) Dependency and Indemnity Compensation for Children.--
(1) Section 1313(a) is amended--
(A) by striking ``$397'' in paragraph (1) and inserting
``$402'';
(B) by striking ``$571'' in paragraph (2) and inserting
``$578'';
(C) by striking ``$742'' in paragraph (3) and inserting
``$752''; and
(D) by striking ``$742'' and ``$143'' in paragraph (4) and
inserting ``$752'' and ``$145'', respectively.
(2) Section 1314 is amended--
(A) by striking ``$234'' in subsection (a) and inserting
``$237'';
(B) by striking ``$397'' in subsection (b) and inserting
``$402''; and
(C) by striking ``$199'' in subsection (c) and inserting
``$201''.
TITLE IV--JUDICIAL MATTERS
SEC. 401. STANDARD FOR REVERSAL BY COURT OF APPEALS FOR
VETERANS CLAIMS OF ERRONEOUS FINDING OF FACT BY
BOARD OF VETERANS' APPEALS.
(a) Standard for Reversal.--Paragraph (4) of subsection (a)
of section 7261 is amended--
(1) by inserting ``adverse to the claimant'' after
``material fact''; and
(2) by inserting ``or reverse'' after ``and set aside''.
(b) Requirements for Review.--Subsection (b) of that
section is amended to read as follows:
``(b) In making the determinations under subsection (a),
the Court shall review the record of proceedings before the
Secretary and the Board of Veterans' Appeals pursuant to
section 7252(b) of this title and shall--
``(1) take due account of the Secretary's application of
section 5107(b) of this title; and
``(2) take due account of the rule of prejudicial error.''.
(c) Applicability.--(1) Except as provided in paragraph
(2), the amendments made by this section shall take effect on
the date of the enactment of this Act.
(2) The amendments made by this section shall apply with
respect to any case pending for decision before the United
States Court of Appeals for Veterans Claims other than a case
in which a decision has been entered before the date of the
enactment of this Act.
SEC. 402. REVIEW BY COURT OF APPEALS FOR THE FEDERAL CIRCUIT
OF DECISIONS OF LAW OF COURT OF APPEALS FOR
VETERANS CLAIMS.
(a) Review.--Section 7292(a) is amended by inserting ``a
decision of the Court on a rule of law or of'' in the first
sentence after ``the validity of''.
(b) Applicability.--The amendment made by subsection (a)
shall apply with respect to any appeal--
(1) filed with the United States Court of Appeals for the
Federal Circuit on or after the date of the enactment of this
Act; or
(2) pending with the United States Court of Appeals for the
Federal Circuit as of the date of the enactment of this Act
in which a decision has not been rendered as of that date.
SEC. 403. AUTHORITY OF COURT OF APPEALS FOR VETERANS CLAIMS
TO AWARD FEES UNDER EQUAL ACCESS TO JUSTICE ACT
FOR NON-ATTORNEY PRACTITIONERS.
The authority of the United States Court of Appeals for
Veterans Claims to award reasonable fees and expenses of
attorneys under section 2412(d) of title 28, United States
Code, shall include authority to award fees and expenses, in
an amount determined appropriate by the United States Court
of Appeals for Veterans Claims, of individuals admitted to
practice before the Court as non-attorney practitioners under
subsection (b) or (c) of Rule 46 of the Rules of Practice and
Procedure of the United States Court of Appeals for Veterans
Claims.
Amendment to the title of S. 2237
Amend the title so as to read: ``An Act to amend title 38,
United States Code, to improve authorities of the Department
of Veterans Affairs relating to veterans' compensation,
dependency and indemnity compensation, and pension benefits,
education benefits, housing benefits, memorial affairs
benefits, life insurance benefits, and certain other benefits
for veterans, to improve the administration of benefits for
veterans, to make improvements in procedures relating to
judicial review of veterans' claims for benefits, and for
other purposes.''.
Mr. SIMPSON. Mr. Speaker, I rise in strong support for S. 2237, the
Veterans Benefits Act of 2002. This sweeping measure encompasses
enhancements to veterans' compensation, pension, insurance and home
loan benefits, among other matters.
The Veterans Benefits Act of 2002 compromises provisions included in
S. 2237 and five House bills previously considered in this body. I will
highlight a few of the provisions:
I am especially pleased that we are able to extend VA health care
eligibility to surviving spouses who remarry after age 55. Under
current law, a surviving spouse is not entitled to this benefit while
married. As I explained to Ms. Blackwell following her testimony before
our subcommittee, I wish we had the means at this time to be more
generous to these deserving spouses. However, as the chairman has
indicated, this is a first step in restoring entitlement to the host of
benefits these women and men must give up when they remarry later in
life. I thank Mike Bilirakis for his leadership on this issue.
The bill also includes modest increases in funding for State
approving agencies given the additional statutory duties SAAs now
perform in maintaining the integrity of servicemember and veterans'
education and training programs. These new funding levels are $14
million for fiscal year 2003, $18 million for fiscal year 2004, $18
million for fiscal year 2005, $19 million for fiscal year 2006, and $19
million for fiscal year 2007.
I especially look forward to an aggressive initiative by SAAs in
seeking out and approving for veterans' training, employer-based on-job
training, and apprenticeship opportunities across the country. Our
veterans use of VA educational assistance programs for OJT and
apprenticeship is very limited. Lastly, I agree with Chairman Smith;
VA's OJT apprenticeship program largely is still based on the original
World War II model. Congress has some serious work to do in updating
this program next year.
S. 2237, as amended, provides coverage under the Soldiers' and
Sailors' Civil Relief Act to members of the National Guard who are
called to active service for more than 30 consecutive days to respond
to a national emergency. I recognize Lane Evans for his work on this
proposal.
The bill also increases the Medal of Honor special pension from $600
to $1,000 per month. I am pleased we are able to recognize, albeit in a
small way, our nation's real heroes.
S. 2237, as amended, authorizes the Secretary of the Army to place a
new memorial at Arlington National cemetery in honor of veterans who
fought in the Battle of the Bulge of World War II, one of the greatest
land battles of that war.
In addition, S. 2237 provides enhancements to existing authorities
which provide compensation to women veterans and veterans with hearing
loss.
Mr. Speaker, we have worked with the Senate on this bill for many
months, and I'm proud of the outcome. Many veterans and their survivors
will indeed benefit.
I must give due recognition to the Chairman and Ranking Member, Chris
Smith and Lane Evans, respectively, for their unwavering leadership.
During the 107th Congress, this committee has brought to the floor 23
bills, all of which passed the House overwhelmingly. I must also thank
my good friend, the Ranking Member of the Benefits Subcommittee,
Silvestre Reyes.
Mr. Speaker, I urge my colleagues to support S. 2237, this final
veterans package of the 107th Congress.
Mr. EVANS. Mr. Speaker, I rise in strong support of the bill, S.
2237, as agreed to by both the House and the Senate. This bill improves
compensation benefits for hearing disabled veterans and for women
veterans, extends protection under the Soldiers' and Sailors' Civil
Relief Act to members of the National Guard and provides improvements
to the judicial review of claims for veterans benefits.
The agreement before the House is the result of the efforts of many
people on both sides of the aisle. I thank our Chairman, Chris Smith,
for his determined and effective leadership. I also thank other Members
of our House Committee; the leadership of the Veterans Affairs
Committee in the other body and, of course, the staff of our House
Committee who have worked long and hard on this legislation. In
particular, I thank Mary Ellen McCarthy and Geoffrey Collver for their
untiring efforts.
S. 2237 incorporates provisions from a number of bills passed by the
House. The Veterans Benefits Act of 2002 will allow surviving spouses
who remarry after age 55 to retain CHAMPVA health insurance benefits.
Mr. Speaker, I was honored by the Gold Star Wives of America for my
advocacy on behalf of surviving spouses of veterans. While I am pleased
that these spouses, like civil service surviving spouses will be able
to retain health insurance benefits, I am extremely disappointed that
the provision allowing Dependency and Indemnity Compensation (DIC)
recipients to remarry after age 65 and retain
[[Page H9003]]
those benefits was not included in the final bill. I hope that in the
next Congress, these surviving spouses will be able to receive full
comparability with federal civil service survivors who are allowed to
remarry at age 55 without loss of benefits.
The bill also includes provisions similar to those contained in H.R.
4017, which I introduced, in order to provide members of the National
Guard who serve for at least 30 consecutive days with protections under
the Soldiers' and Sailors' Civil Relief Act (SSCRA). The SSCRA protects
those who are serving our country from civil actions and reduces the
rate of interest on certain obligations entered into prior to being
activated for military service. When we ask the men and women of the
National Guard to respond to a national emergency, such as the services
required following the tragedies of September 11th, we have a
responsibility to assure that their service to our country will not
place them in unnecessary financial jeopardy.
Mr. Speaker, the bill expands the jurisdiction of the Court of
Appeals for the Federal Circuit over cases appealed from the Court of
Appeals for Veterans Claims to cover all questions of law and not
merely interpretations of statutes and regulations. It clarifies the
authority of the Court of Appeals for Veterans Claims to reverse
decisions of the Board of Veterans Appeals in appropriate cases and
requires the decisions be based upon the record as a whole, taking into
account the pro-veteran rule known as ``benefit of the doubt.'' Under
the bill, non-attorneys who are permitted to practice before the Court
of Veterans Appeals will be able to qualify for fees under the Equal
Access to Justice Act even if they are not supervised by an attorney.
Under current law, these practitioners are eligible for these fees only
if their work is supervised by an attorney. I hope these changes will
provide fairer and more efficient decisions on veterans' claims.
In addition to these benefit provisions, S. 2237 also:
Authorizes a study by the National Academy of Science concerning the
relationship of military hearing loss and acoustic trauma to military
service.
Authorizes the placement of a memorial to the World War II Battle of
the Bulge at Arlington National Cemetery.
Allows severely disabled service-connected veterans who qualify for
Veterans Mortgage Life Insurance to retain their coverage regardless of
age.
Authorizes a two-year program of hybrid adjustable rate mortgages
under the VA home loan program.
Provides for an increase to $1000 per month in special pension
benefits payable to persons who have been awarded the Medal of Honor.
Sets forth the amounts of benefits to be paid as service-connected
compensation and DIC benefits effective December 1, 2002.
S. 2237 will now be considered by the Senate. If S. 2237 is passed by
the Senate as approved by the House, it will be sent to the White House
to be signed into law by President Bush.
Mr. Speaker, I urge my colleagues to support this legislation.
Mr. SMITH of New Jersey. Mr. Speaker, the bill which is before the
House represents a compromise measure that has been worked out with the
Senate on a number of benefit-related measures considered this year.
In May of this year, the House considered and passed H.R. 4085, the
Veterans and Survivors Benefits Expansion Act. There were three major
provisions in that bill: (1) the annual cost-of-living adjustment for
disabled veterans and the survivors eligible for dependency and
indemnity compensation; (2) a revision to the eligibility for survivor
benefits so that surviving spouses of veterans who died of service-
related causes could retain their eligibility for veterans' benefit
even if they remarried after age 65; and (3) a reduction in the loan
fees payable by reservists who use the VA home loan program.
The Senate stripped all but the COLA from H.R. 4085 at the end of
September and returned it to the House. We agreed to the clean COLA
bill, which was signed by President Bush and is Public Law 107-247.
The Senate also sent us a benefits bill, S. 2237, which has become
the vehicle for the compromises worked out by the two committees for
the provisions previously contained in H.R. 4085 and a number of
provisions contained in the Senate bill passed last month.
Because of an evolving budget situation, the committees found
themselves forced to offset virtually all of the PAYGO costs associated
with the bill. The Senate bill had basically none of the provisions
originally contained in H.R. 4085. Instead, it proposed to expand
eligibility for service-connected hearing loss and allow veterans to
obtain a ``hybrid'' adjustable rate mortgage using their VA home loan
eligibility.
The compromise includes modified versions of these important Senate
provisions. It does not include the DIC change proposed by the House,
although it provides eligibility for CHAMPVA for surviving spouses who
remarried after age 55. They must apply for this benefit within one
year of the date the President signs this legislation. This and other
changes were made in order to keep the bill within strict budget
guidelines governing direct spending, or PAYGO.
The compromise includes a House-passed provision authorizing the
placement of a memorial at Arlington National Cemetery honoring
veterans of the Battle of the Bulge. It includes as well a provision
which originated in the House to raise the Medal of Honor pension to
$1,000 monthly and to make retroactive payments for those who were
awarded this medal.
A provision is also included to extend coverage under the Soldiers'
and Sailors' Civil Relief Act to members of the National Guard who are
called to active service for more than 30 consecutive days to respond
to a national emergency. Many members expressed an interest in this
particular provision, and I commend Mr. Evans for a similar proposal in
H.R. 4017. Senator Wellstone was the author of a Senate proposal, and I
am pleased that our compromise agreement on this is built upon their
work.
For the benefit of my colleagues, I include at this point in the
Record a joint explanatory statement describing the compromise
agreement we have reached with the other body.
Mr. Speaker, I urge all Members to support this bipartisan measure
for our Nation's veterans.
Explanatory Statement on House Amendment to Senate Bill, S. 2237
S. 2237, as amended, the ``Veterans Benefits Act of 2002,''
reflects a Compromise Agreement the Senate and House
Committees on Veterans' Affairs have reached on the following
bills considered in the House and Senate during the 107th
Congress: S. 2237 (``Senate Bill''), H.R. 2561, H.R. 3423,
H.R. 4085, H.R. 4940, and H.R. 5055 (``House Bills''). S.
2237, as amended, passed the Senate on September 26, 2002;
H.R. 2561 and H.R. 3423, as amended, passed the House on
December 20, 2001; H.R. 4085, as amended, passed the House on
May 21, 2002; and H.R. 4940, as amended, and H.R. 5055 passed
the House on July 22, 2002.
The Senate and House Committees on Veterans' Affairs have
prepared the following explanation of S. 2237, as amended,
(``Compromise Agreement''). Differences between the
provisions contained in the Compromise Agreement and the
related provisions of S. 2237, H.R. 2561, H.R. 3423, H.R.
4085, H.R. 4940, H.R. 5055, are noted in this document,
except for clerical corrections, conforming changes made
necessary by the Compromise Agreement, and minor drafting,
technical, and clarifying changes.
TITLE I--COMPENSATION AND BENEFITS IMPROVEMENTS
Retention of Civilian Health and Medical Program of the Department of
Veterans Affairs for Surviving Spouses Remarrying After Age 55
Current law
Section 103(d) of title 38, United States Code, prohibits a
surviving spouse who has remarried from receiving dependency
and indemnity compensation (``DIC''), VA health insurance
under the Civilian Health and Medical Program of the
Department of Veterans Affairs (``CHAMPVA''), home loan, and
education benefits. These benefits may be reinstated in the
event the subsequent remarriage is terminated.
House bill
Section 3 of H.R. 4085 would allow a surviving spouse who
remarries after attaining age 65 to retain DIC, CHAMPVA
health insurance, home loan, and education benefits. Spouses
who remarried at age 65 or older prior to enactment of the
bill would have one year from the date of enactment to apply
for reinstatement of DIC and related benefits. The amount of
DIC would be paid with no reduction of certain other benefits
to which the surviving spouse might be entitled.
Senate bill
The Senate Bill contains no comparable provision.
Compromise agreement
Section 101 of the Compromise Agreement would provide that
a surviving spouse, upon remarriage after attaining age 55,
would retain CHAMPVA eligibility. Surviving spouses who
remarried after attaining age 55 but prior to enactment of
this Act would have one year to apply for reinstatement of
this benefit. The Committees expect the Secretary will
maintain data concerning the number of surviving spouses who
become eligible or retain eligibility under this provision.
The Committees intend in the 108th Congress to consider
full restoration of benefits for surviving spouses who
remarry after attaining age 55.
Clarification of Entitlement to Special Monthly Compensation for Women
Veterans Who Have Service-connected Loss of Breast Tissue
Current law
Section 1114(k) of title 38, United States Code, authorizes
the Department of Veterans Affairs (``VA'') to provide
special monthly compensation to any woman veteran who ``has
suffered the anatomical loss of one or
[[Page H9004]]
both breasts (including loss by mastectomy)'' as a result of
military service. Regulations published at section 4.116 of
title 38, Code of Federal Regulations, have limited this
compensation to ``Anatomical loss of a breast exists when
there is complete surgical removal of breast tissue (or the
equivalent loss of breast tissue due to injury). As defined
under this section, radical mastectomy, modified radical
mastectomy, and simple (or total) mastectomy result in
anatomical loss of a breast, but wide local excision, with or
without significant alteration of size or form, does not.''
Senate bill
Section 101 of S. 2237 would amend section 1114(k) of title
38, United States Code, to specify that women veterans who
have suffered the anatomical loss of half of the tissue of
one or both breasts in or as a result of military service may
be eligible for special monthly compensation.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 102 of the Compromise Agreement follows the Senate
language, and would amend it to extend eligibility to women
veterans who have suffered the anatomical loss of 25 percent
or more of tissue from one or both breasts (including loss by
mastectomy or partial mastectomy) or who received radiation
treatment of breast tissue. The Committees intend that this
change should extend eligibility for special monthly
compensation to women veterans whose medical treatments
(other than ``cosmetic surgery'') or injuries have resulted
in a significant change in size, form, function, or
appearance of one or both breasts.
Specification of Hearing Loss Required for Compensation For Hearing
Loss in Paired Organs
Current Law
Under section 1160 of title 38, United States Code, special
consideration is extended to a veteran's service-connected
disabilities in ``paired organs or extremities,'' such as
kidneys, lungs, feet, or hands. For these paired organs or
extremities, VA is authorized when rating disability to
consider any degree of damage to both organs, even if only
one resulted from military service. Total impairment is not a
requirement for kidneys, hands, feet, or lungs. Proportional
impairment, such as ``the loss or loss of use of one kidney
as a result of service-connected disability and involvement
of the other kidney as a result of non-service-connected
disability,'' is specifically provided for in subsections
(2), (4), and (5) of section 1160(a) of title 38, United
States Code. However, total deafness in both ears is required
under section 1160(a)(3) of title 38, United States Code, for
special consideration of hearing loss.
Senate bill
Section 102 of S. 2237 would eliminate the word ``total''
from section 1160(a)(3) of title 38, United States Code, and
allow VA to consider partial non-service-connected hearing
loss in one ear when rating disability for veterans with
compensable service- connected hearing loss in the other ear.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 103 of the Compromise Agreement follows the Senate
language.
Assessment of Acoustic Trauma Associated With Military Service From
World War II to Present
Current law
There is no applicable current law.
Senate bill
Section 103(a) of S. 2237 would authorize the Secretary to
establish a presumption of service connection for hearing
loss or tinnitus in veterans who served in certain military
occupational specialties during specific periods of time if
VA finds that evidence warrants such a presumption. Section
103(b) would extend presumption rebuttal provisions in title
38, United States Code, to cover service-connected hearing
loss, should such a presumption be established.
Section 103(c) of the Senate Bill would require VA to enter
into a contract with the National Academy of Sciences
(``NAS'') or an equivalent scientific organization to review
scientific evidence on forms of acoustic trauma that could
contribute to hearing disorders for personnel serving in
specific military occupational specialties. Section
103(c)(2)(B) of the Senate Bill would direct NAS to identify
forms of acoustic trauma likely to cause hearing damage in
servicemembers, and, in section 103(c)(2)(C), to determine
whether such damage would be immediate, cumulative, or
delayed. Section 103(c)(2)(D) of the Senate Bill would
require NAS to assess when audiometric data collected by the
military services became adequate to allow an objective
assessment of individual exposure by VA, examining a
representative sample of records from World War II to present
by period of service. Section 103(c)(2)(E) of the Senate Bill
would require NAS to identify military occupational
specialties in which servicemembers are likely to be exposed
to sufficient acoustic trauma to cause hearing disorders.
Section 103(d) of S. 2237 would require VA to report on
medical care provided to veterans for hearing disorders from
fiscal years 1999-2001; on the number of disability
compensation claims received and granted for hearing loss,
tinnitus, or both during those years; and an estimate of the
total cost to VA of adjudicating those claims in full-time
employee equivalents.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 104 of the Compromise Agreement would strike
sections 103(a) and 103(b) of the Senate Bill authorizing a
presumption of service connection. The Compromise Agreement
follows the Senate language requiring VA to enter into a
contract with NAS, but would change the focus of the study to
assessment of acoustic trauma associated with military
service from World War II to present.
The Compromise Agreement would strike sections
103(c)(2)(B), 103(c)(2)(D), 103(c)(2)(E), and all references
to military occupational specialties. The Compromise
Agreement follows the Senate language requiring NAS to
determine how much exposure to acoustic trauma or noise
damage during military service might cause or contribute to
hearing loss, hearing threshold shift, or tinnitus, and
whether this damage may be immediate- or delayed-onset,
cumulative, progressive, or a combination of these.
The Compromise Agreement would preserve provisions
requiring NAS to assess when audiometric measures became
adequate to assess individual hearing threshold shift
reliably and when sufficiently protective hearing
conservation measures became available. It would also add a
third provision requiring NAS to identify age, occupational
history, and other factors which could contribute to an
individual's noise-induced hearing loss.
In assessing when audiometric data collected by the
military became adequate for VA to evaluate if a veteran's
hearing threshold shift could be detected at or prior to
separation, the Committees intend for NAS to review and
report on a representative sample of individual records. This
should reflect not only an appropriate distribution of
individuals among the various Armed Forces, but within each
military service branch so that these records represent
servicemembers who might reasonably be expected to have
different levels of noise exposure in the course of their
duties. The representative sample should also include records
of servicemembers discharged during or after distinct periods
of war or conflict and consider the environment in which they
served in order to gauge how adequately each branch collected
audiometric data following World War II, the Korean conflict,
the Vietnam era, and during and following the Persian Gulf
War.
The Compromise Agreement would generally follow the Senate
language requiring VA to report on hearing loss claims and
medical treatment for hearing disorders. The Compromise
Agreement would amend this language to refer to the number of
decisions issued and their results, rather than claims
submitted in fiscal years 2000 through 2002, and would remove
references to military occupational specialties.
TITLE II--MEMORIAL AFFAIRS
Prohibition on Certain Additional Benefits For Persons Committing
Capital Crimes
Current law
Sections 2411 and 2408(d) of title 38, United States Code,
prohibit persons who are convicted of capital crimes from
interment or memorialization in National Cemetery
Administration cemeteries, Arlington National Cemetery
(``ANC''), or a State cemetery that receives VA grant
funding. Section 5313 of title 38, United States Code,
further limits VA benefits available to veterans who die
while fleeing prosecution or after being convicted of a
capital crime.
Senate bill
Section 402 of S. 2237 would prohibit the issuance of
Presidential Memorial Certificates, flags, and memorial
headstones or grave markers to veterans convicted of or
fleeing from prosecution for a State or Federal capital
crime.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 201 of the Compromise Agreement follows the Senate
language.
Procedures for Disqualification of Persons Committing Capital Crimes
For Interment or Memorialization in National Cemeteries
Current law
Section 2411 of title 38, United States Code, prohibits
interment or memorialization in National Cemetery
Administration cemeteries or in Arlington National Cemetery
(``ANC'') of any person convicted of a capital crime. This
section further prohibits interment or memorialization of
persons found by the Secretary of Veterans Affairs or the
Secretary of the Army to have committed capital crimes but
who avoided conviction of the crime through flight or death
preceding prosecution. In such cases, the Secretary of
Veterans Affairs or the Secretary of the Army must receive
notice from the Attorney General of the United States, or the
appropriate State official, of the Secretary's own finding
before the prohibition shall apply.
Senate bill
Section 403 of S. 2237 would eliminate the requirement that
the Secretary of Veterans Affairs or the Secretary of the
Army be notified of a finding by the Attorney General or
[[Page H9005]]
the appropriate State official in cases of persons who are
found to have committed capital crimes but who avoided
conviction of the crime through flight or death preceding
prosecution.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 202 of the Compromise Agreement follows the Senate
language.
Application of Department of Veterans Affairs Benefit for Government
Markers for Marked Graves of Veterans at Private Cemeteries to Veterans
Dying on or After September 11, 2001
Current law
Section 2306(d)(1) provides that the Secretary shall
furnish a government marker to those families who request one
for the marked grave of a veteran buried at a private
cemetery, who died on or after December 27, 2001.
House Bill
Section 6 of H.R. 4940 would make section 2306(d)(1)
retroactive to veterans who died on or after September 11,
2001.
Senate Bill
The Senate Bill contains no comparable provision.
Compromise agreement
Section 203 of the Compromise Agreement follows the House
language.
Authorization of Placement of Memorial in Arlington National Cemetery
Honoring World War II Veterans Who Fought in the Battle of the Bulge
Current law
Section 2409 of title 38, United States Code, authorizes
the Secretary of Army to erect appropriate memorials or
markers in Arlington National Cemetery to honor the memory of
members of the Armed Forces.
House bill
H.R. 5055 would authorize the Secretary of the Army to
place in ANC a new memorial marker honoring veterans who
fought in the Battle of the Bulge during World War II. The
Secretary of the Army would have exclusive authority to
approve an appropriate design and site within ANC for the
memorial.
Senate bill
The Senate Bill contains no comparable provision.
Compromise agreement
Section 204 of the Compromise Agreement would authorize the
Secretary of the Army to place in ANC a new memorial marker
honoring veterans who fought in the Battle of the Bulge.
TITLE III--OTHER MATTERS
Increase in Aggregate Annual Amount Available for State Approving
Agencies for Administrative Expenses for Fiscal Years 2003, 2004, 2005,
2006, and 2007
Current law
Section 3674(a)(4) of title 38, United States Code, funds
State approving agencies. From fiscal years 1995 to 2000,
State approving agency (``SAA'') funding was capped, with no
annual increase, at $13 million. Public Law 106-419 increased
SAA funding to $14 million for fiscal years 2001 and 2002.
Under current law, the authorization amount was reduced to
$13 million as of October 1, 2002. SAAs are the agencies that
determine which schools, courses, and training programs
qualify as eligible for veterans seeking to use their GI Bill
benefits.
Senate bill
Section 201 of S. 2237 would restore SAA funding to $14
million per year and would increase it to $18 million per
year during fiscal years 2003, 2004, and 2005.
House bill
Section 6 of H.R. 4085 contains an identical provision.
Compromise agreement
Section 301 of the Compromise Agreement would restore SAA
funding at $14 million for fiscal year 2003, $18 million for
fiscal year 2004, $18 million for fiscal year 2005, $19
million for fiscal year 2006, and $19 million for fiscal year
2007.
Authority for Veterans' Mortgage Life Insurance To Be Carried Beyond
Age 70
Current law
Section 2106(i)(2) of title 38, United States Code,
provides that Veterans' Mortgage Life Insurance (``VMLI'')
shall be terminated on the veteran's seventieth birthday.
VMLI is designed to provide financial protection to cover
eligible veterans' home mortgages in the event of death. VMLI
is issued only to those severely disabled veterans who have
received grants for Specially Adapted Housing from the
Department of Veterans Affairs.
House bill
Section 5(b) of H.R. 4085 would permit veterans eligible
for specially-adapted housing grants to continue their VMLI
coverage beyond age 70. No new policies would be issued after
age 70.
Senate bill
The Senate Bill contains no comparable provision.
Compromise agreement
Section 302 of the Compromise Agreement follows the House
language.
Authority To Guarantee Hybrid Adjustable Rate Mortgages
Current law
There is no authorization in current law for VA to
guarantee adjustable rate mortgages (``ARMs'') and hybrid
adjustable rate mortgages (``hybrid ARMs''). A hybrid ARM
combines features of fixed rate mortgages and adjustable rate
mortgages. A hybrid ARM has a fixed rate of interest for at
least the first 3 years of the loan, with an annual interest
rate adjustment after the fixed rate has expired.
Senate bill
Section 301 of S. 2237 would authorize VA to establish a
three-year pilot program to guarantee hybrid ARMs and
reauthorize a fiscal year-1993 to 1995 pilot program to
guarantee conventional ARMs. This authority would begin in
fiscal year 2003 and expire at the end of fiscal year 2005.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 303 of the Compromise Agreement would authorize VA
to guarantee hybrid ARMs for a period of two years. The
effective date of this provision would be October 1, 2003.
Increase in the Amount Payable as Medal of Honor Special Pension
Current law
Section 1562 of title 38, United States Code, provides a
special pension of $600 per month to recipients of the Medal
of Honor. Eligibility to receive the Medal of Honor special
pension is contingent upon having first been awarded the
Medal of Honor.
Senate bill
Section 104 of S. 2237 would increase the Medal of Honor
special pension from $600 to $1,000 per month. Beginning in
January 2003, the pension amount would be adjusted annually
to maintain the value of the pension in the face of the
rising cost of living. The amount of this adjustment would
match the percentage of the cost-of-living adjustment paid to
Social Security recipients. The Senate Bill would also
provide for a one-time, lump-sum payment in the amount of
special pension the recipient would have received between the
date of the act of valor and the date that the recipient's
pension actually commenced.
House bill
H.R. 2561 would increase the special pension payable to
Medal of Honor recipients from $600 to $1,000 per month, and
provide a lump sum payment for existing Medal of Honor
recipients in an amount equal to the total amount of special
pension that the person would have received had the person
received special pension during the period beginning the
first day of the month that began after the act giving rise
to the receipt of the Medal of Honor, and ending with the
last day of the month preceding the month that such person's
special compensation commenced. H.R. 2561 also would provide
criminal penalties for the unauthorized purchase or
possession of the Medal and for making a false representation
as a Medal recipient.
Compromise agreement
Section 304 of the Compromise Agreement follows the Senate
language, but would modify the effective date of the
provision to September 1, 2003. It is the Committee's
understanding that the first month a Medal of Honor recipient
would receive special pension is October 2003.
It is the Committees' intent that the lump sum payment of
special pension be determined using the rates of special
pension and the laws of eligibility in effect (including
applicable age requirements) for months beginning after an
individual's act of gallantry. Excluded from this rule would
be the law of eligibility requiring an individual to have
been awarded a Medal of Honor.
Extension of Protections Under Soldiers' and Sailors' Civil Relief Act
of 1940 to National Guard Members Called to Active Duty Under Title 32,
United States Code
Current law
The Soldiers' and Sailors' Civil Relief Act of 1940
(``SSCRA''), sections 510 et seq., of title 50, United States
Code Appendix, suspends enforcement of certain civil
liabilities and provides certain rights and legal protections
to servicemembers who have been called up to active duty
under title 10, United States Code. However, these
protections do not extend to National Guard members called to
duty under section 502(f) of title 32, United States Code,
``to perform training or other duty.'' Certain homeland
security duties performed under title 32, United States Code,
such as protecting the nation's airports, have been carried
out at the request and expense of the Federal government with
National Guard members under the command of their state
governors.
Senate bill
Section 401 of S. 2237 would expand SSCRA protections to
include those National Guard members serving full-time, upon
an order of the Governor of a State at the request of the
head of a Federal law enforcement agency and with the
concurrence of the Secretary of Defense, under 502(f) of
title 32, United States Code for homeland security purposes.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 305 of the Compromise Agreement would provide that
when members of the National Guard are called to active
service for
[[Page H9006]]
more than 30 consecutive days under section 502(f) of title
32, United States Code, to respond to a national emergency
declared by the President, coverage under the provisions of
the SSCRA would be available. The Committees note that this
provision is intended to extend protections of the SSCRA to
members of the National Guard when called to duty under
circumstances similar to those following the terrorist
attacks of September 11, 2001.
Extension of Income Verification Authority
Current law
Section 6103(l)(7)(D) of the Internal Revenue Code gives
the Internal Revenue Service (``IRS'') authority to furnish
income information to the VA from IRS records so that VA
might determine eligibility for VA need-based pension,
parents dependency and indemnity compensation, and priority
for VA health-care services. This provision currently expires
on September 30, 2003, pursuant to Public Law 105-33.
Section 5317 of title 38, United States Code, provides
parallel authority for VA to use IRS information and requires
VA to notify applicants for needs-based benefits that income
information furnished by the applicant may be compared with
the information obtained from the Departments of Health and
Human Services and Treasury under section 6103(l)(7)(D). This
parallel authority is scheduled to expire on September 30,
2008, pursuant to Public Law 106-409.
Senate bill
Section 106(a) of S. 2237 would extend section
6103(l)(7)(D) of the Internal Revenue Code through September
30, 2011. Section 106(b) would extend section 5317 of title
38, United States Code, through September 30, 2011.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 306 of the Compromise Agreement would extend
section 6103(l)(7)(D) of the Internal Revenue Code through
September 30, 2008.
Fee for Loan Assumption
Current law
Section 3729(b)(2)(1) of title 38, United States Code,
requires a 0.50 percent loan fee for active-duty
servicemembers, veterans, Reservists, and others
participating in loan assumptions under section 3714.
Senate bill
The Senate Bill contains no comparable language.
House bill
The House Bills contain no comparable language.
Compromise agreement
Section 307 of the Compromise Agreement would increase the
loan fee for assumptions for loans closed more than 7 days
after enactment in fiscal year 2003 from 0.50 percent to 1.0
percent. The Committees intend this fee increase to expire at
the end of fiscal year 2003.
TITLE IV--JUDICIAL MATTERS
The U.S Court of Appeals for Veterans Claims (``CAVC'') is
an Article I Court of limited jurisdiction. It has come to
the Committees' attention that the Administration has
disregarded Congressional intent in interpreting the CAVC to
be part of the Executive Branch and subject to rescissions of
Executive Branch agency budgets, pursuant to section 1403 of
Public Law 107-206. The Committees note that while the budget
for the Court is included in the President's budget, the
Executive Branch has no authority to review it. Public Law
100-687, section 4082(a). It is the Committees' intent to
clarify that the CAVC is not part of the Executive Branch.
The Committees have so stated on other occasions, e.g., ``The
Court, established by the Congress under Article I of the
Constitution to exercise judicial power, has unusual status
as an independent tribunal that is not subject to the control
of the President or the executive branch.'' House of
Representatives Report 107-156, July 24, 2001, and Senate
Report 107-86, October 15, 2001.
Standard for Reversal by Court of Appeals for Veterans Claims of
Erroneous Finding of Fact by Board of Veterans' Appeals
Current law
Under section 7261(a)(4) of title 38, United States Code,
the Court of Appeals for Veterans Claims applies a ``clearly
erroneous'' standard of review to findings of fact made by
the Board of Veterans' Appeals (``BVA''). The ``clearly
erroneous'' standard has been defined as requiring CAVC to
uphold BVA findings of fact if the findings are supported by
``a plausible basis in the record . . . even if [CAVC] might
not have reached the same factual determinations.'' Wensch v.
Principi, 15 Vet. App. 362, 366-68 (2001). The recent U.S.
Court of Appeals for the Federal Circuit decision of Hensley
v. West, 212 F.3d 1255 (Fed. Cir. 2000) emphasized that CAVC
should perform only limited, deferential review of BVA
decisions, and stated that BVA fact-finding ``is entitled on
review to substantial deference.'' Id. at 1263.
Section 5107(b) of title 38, United States Code, provides
that VA must find for the claimant when, in considering the
evidence of record, there is an approximate balance of
positive and negative evidence regarding any material issue
including the ultimate merits of the claim. This ``benefit of
the doubt'' standard applicable to proceedings before VA is
unique in administrative law. Under the benefit of the doubt
rule, unless the preponderance of the evidence is against the
claimant, the claim is granted. Gilbert v. Derwinski, 1 Vet.
App. 49 (1990) and Forshey v. Principi, 284 F.3d 1335
(Fed. Cir. 2002).
Senate bill
Section 501 of S. 2237 would amend section 7261(a)(4) of
title 38 to change the standard of review CAVC applies to BVA
findings of fact from ``clearly erroneous'' to ``unsupported
by substantial evidence.'' Section 502 would also cross-
reference section 5107(b) in order to emphasize that the
Secretary's application of the ``benefit of the doubt'' to an
appellant's claim would be considered by CAVC on appeal.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 401 of the Compromise Agreement follows the Senate
language with the following amendments.
The Compromise Agreement would modify the standard of
review in the Senate bill in subsection (a) by deleting the
change to a ``substantial evidence'' standard. It would
modify the requirements of the review the Court must perform
when it is making determinations under section 7261(a) of
title 38, United States Code. Since the Secretary is
precluded from seeking judicial review of decisions of the
Board of Veterans Appeals, the addition of the words
``adverse to the claimant'' in subsection (a) is intended to
clarify that findings of fact favorable to the claimant may
not be reviewed by the Court. Further, the addition of the
words ``or reverse'' after ``and set aside'' is intended to
emphasize that the Committees expect the Court to reverse
clearly erroneous findings when appropriate, rather than
remand the case.
New subsection (b) would maintain language from the Senate
bill that would require the Court to examine the record of
proceedings before the Secretary and BVA and the special
emphasis during the judicial process on the benefit of the
doubt provisions of section 5107 (b) as it makes findings of
fact in reviewing BVA decisions. This would not alter the
formula of the standard of review on the Court, with the
uncertainty of interpretation of its application that would
accompany such a change. The combination of these changes is
intended to provide for more searching appellate review of
BVA decisions, and thus give full force to the ``benefit of
doubt'' provision.
The Compromise Agreement would also modify the effective
date of this provision to apply to cases that have not been
decided prior to the enactment of this Act. This provision
would not apply to cases in which a decision has been made,
but are not final because the time to request panel review or
to appeal to the U.S. Court of Appeals for the Federal
Circuit (``Federal Circuit'') has not expired.
Review by Court of Appeals for the Federal Circuit of Decisions of Law
Current law
Under section 7292(a) of title 38, United States Code, the
Federal Circuit may only review CAVC decisions involving
questions of law ``with respect to the validity of any
statute or regulation.'' It does not explicitly have the
authority to hear appeals of CAVC decisions that are not
clearly legal interpretations of statutes or regulations.
Senate bill
Section 502 of S. 2237 would amend sections 7292(a) and (c)
of title 38, United States Code, to specifically provide for
appellate review of a CAVC decision on any rule of law.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 402 of the Compromise Agreement follows the Senate
language.
Authority of Court of Appeals for Veterans Claims to Award Fees Under
Equal Access to Justice Act to Non-Attorney Practitioners
Current law
Currently, section 2412(d) of title 28, United States Code,
the Equal Access to Justice Act (``EAJA''), shifts the burden
of attorney fees from the citizen to the government in cases
where the government's litigation position is not
substantially justified and the citizen qualifies under
certain income and asset criteria. Qualified non-attorneys
admitted to practice before the CAVC may only receive fees if
the EAJA application is signed by an attorney.
Senate bill
Section 503 of S. 2237 would allow qualified non-attorneys
admitted to practice before the CAVC to be awarded fees under
EAJA for representation provided to VA claimants without the
requirement that an attorney sign the EAJA application.
House bill
The House Bills contain no comparable provision.
Compromise agreement
Section 403 of the Compromise Agreement follows the Senate
language.
The Committees expect that in determining the amount of
reasonable fees payable to non-attorney practitioners, the
Court will apply the usual rules applicable to fees
[[Page H9007]]
for the work of other non-attorneys such as paralegals and
law students based upon prevailing market rates for the kind
and quality of the services furnished. 28 U.S.C.
Sec. 2412(d)(2)(A). See, Sandoval v. Brown, 9 Vet. App.
177, 181 (1996).
Legislative Provisions Not Adopted
ARLINGTON NATIONAL CEMETERY
Current law
Eligibility for burial at Arlington National Cemetery is
governed by federal regulations at section 553.15 of title
32, Code of Federal Regulations. The following categories of
persons are eligible for in-ground burial: active duty
members of the Armed Forces, except those members serving on
active duty for training; retired members of the Armed Forces
who have served on active duty, are on a retired list and are
entitled to receive retirement pay; former members of the
Armed Forces discharged for disability before October 1,
1949, who served on active duty and would have been eligible
for retirement under 10 U.S.C. 1202 had the statute been in
effect on the date of separation; honorably discharged
members of the Armed Forces awarded the Medal of Honor,
Distinguished Service Cross, Air Force Cross or Navy Cross,
Distinguished Service Medal, Silver Star, or Purple Heart;
former prisoners of war who served honorably and who died on
or after November 30, 1993; provided they were honorably
discharged from the Armed Forces, elected federal officials
(the President, Vice President, and Members of Congress),
federal cabinet secretaries and deputies, agency directors
and certain other high federal officials (level I and II
executives), Supreme Court Justices, and chiefs of certain
diplomatic missions; the spouse, widow or widower, minor
child (under 21 years of age) and, at the discretion of the
Secretary of the Army, certain unmarried adult children, and
certain surviving spouses.
House bill
H.R. 4940 would codify eligibility criteria for in-ground
burial at Arlington National Cemetery: members of the Armed
Forces who die on active duty; retired members of the Armed
Forces, including reservists who served on active duty;
members or former members of a reserve component who, but for
age, would have been eligible for retired pay; members of a
reserve component who die in the performance of duty while on
active duty training or inactive duty training; former
members of the Armed Forces who have been awarded the Medal
of Honor, Distinguished Service Cross (Air Force Cross or
Navy Cross), Distinguished Service Medal, Silver Star, or
Purple Heart; former prisoners of war who die on or after
November 30, 1993; the President or any former President;
members of the Guard or Reserves who served on active duty,
who are eligible for retirement, but who have not yet
retired; the spouse, surviving spouse, minor child and at the
discretion of the Superintendent of Arlington, and certain
unmarried adult children. Veterans who do not meet these
requirements might qualify for the placement of their
cremated remains in Arlington's columbarium.
H.R. 4940 would also provide the President the authority to
grant a waiver for burial at Arlington in the case of an
individual not otherwise eligible for burial under the
criteria outlined above but whose acts, service, or
contributions to the Armed Forces were so extraordinary as to
justify burial at Arlington. The President would be allowed
to delegate the waiver authority only to the Secretary of the
Army.
H.R. 4940 would codify existing regulatory eligibility for
interment of cremated remains in the columbarium at Arlington
(generally, this includes all veterans with honorable service
and their dependents), clarify that only memorials honoring
military service may be placed at Arlington and set a 25-year
waiting period for such memorials, and clarify that in the
case of individuals buried in Arlington before the date of
enactment, the surviving spouse is deemed to be eligible if
buried in the same gravesite.
Senate bill
The Senate Bill contains no comparable provision.
Increase of Veterans' Mortgage Life Insurance (``VMLI'') Coverage to
$150,000
Current law
Section 2106(b) of title 38, United States Code, provides
that VMLI may not exceed $90,000.
House bill
Section 5(a) of H.R. 4085 would increase the maximum amount
of coverage available under Veterans' Mortgage Life Insurance
from $90,000 to $150,000. This would increase the amount of
the outstanding mortgage, which would be payable if the
veteran were to die before the mortgage is paid in full.
Senate bill
The Senate Bill contains no comparable provision.
Uniform Home Loan Guaranty Fees for Qualifying Members of the Selected
Reserve and Active Duty Veterans
Current law
Section 3729(b) of title 38, United States Code, provides
the amounts in fees to be collected from each person
participating in VA's Home Loan Guaranty Program. Currently,
members of the Selected Reserve pay a 0.75 percent higher
funding fee under the home loan program than other eligible
veterans.
House bill
Section 4 of H.R. 4085 would amend the Loan Fee Table in
section 3729(b) of title 38, United States Code, to provide
for uniformity in the funding fees charged to members of the
Selected Reserve and active duty veterans for VA home
loans. The fee would be reduced for the period beginning
on October 1, 2002, and ending on September 30, 2005.
Senate bill
The Senate Bill contains no comparable provision.
Prohibit Assignment of Monthly Veterans Benefits and Create an
Education and Outreach Campaign About Financial Services Available to
Veterans
Current law
Section 5301 of title 38, United States Code, currently
prohibits the assignment or attachment of a veteran's
disability compensation or pension benefits. In recent years,
private companies have offered contracts to veterans that
exchange up-front lump sums for future benefits.
Senate bill
Section 105 of S. 2237 would clarify the applicability of
the prohibition on assignment of veterans benefits through
agreements regarding future receipt of compensation, pension,
or dependency and indemnity compensation. This provision
would make violation of this prohibition punishable by a fine
and up to one year in jail.
This provision would also require VA to create a five-year
education and outreach campaign to inform veterans about
available financial services.
House bill
The House Bills contain no comparable provision.
Clarification of Retroactive Application of Provisions of the Veterans
Claims Assistance Act
Current law
Public Law 106-475, the Veterans Claims Assistance Act of
2000 (``VCAA''), restored and enhanced VA's duty to assist
claimants in developing their claims for veterans benefits.
Specifically, section 3(a) of the VCAA requires VA to take
certain steps to assist claimants.
Two recent decisions by the U.S. Court of Appeals for the
Federal Circuit have found that the provisions in the VCAA
pertaining to VA's duty to assist cannot be applied
retroactively to claims pending at the time of its enactment.
In Dyment v. Principi, 287 F.3d 1377 (Fed. Cir. 2002), the
Federal Circuit stated: ``The Supreme Court has held that a
federal statute will not be given retroactive effect unless
Congress has made its contrary intention clear. There is
nothing in the VCAA to suggest that section 3(a) was intended
to applied [sic] retroactively.'' In Bernklau v. Principi,
291 F.3d 795, 806 (Fed. Cir. 2002), the Court again
concluded: ``[S]ection 3(a) of the VCAA does not apply
retroactively to require that proceedings that were complete
before the Department of Veterans Affairs and were on appeal
to the Court of Appeals for Veterans Claims or this court be
remanded for readjudication under the new statute.''
Senate bill
Section 504 of S. 2237 would apply section 3 of VCAA
retroactively to cases that were ongoing either at various
adjudication levels within VA or pending at the applicable
Federal courts prior to the date of VCAA's enactment. Section
505 of the Senate Bill would provide for claims decided
between the handing down of the Dyment case and enactment of
this provision to receive the full notice, assistance, and
protection afforded under the VCAA.
House bill
The House Bills contain no comparable provision.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
The SPEAKER pro tempore. Without objection, the various titles are
amended.
There was no objection.
____________________